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 LOGO]
[GRAPHIC]
2010 SEMI-ANNUAL REPORT
MARCH 31, 2010
For The Following Funds Managed by City National Asset Management, Inc.:
Large Cap Value Equity Fund Multi-Asset Fund High Yeild Bond Fund
Large Cap Growth Equity Fund Corporate Bond Fund Prime Money Market Fund
RCB Small Cap Value Fund Government Bond Fund Government Money Market Fund
Opportunistic Value Fund California Tax Exempt Bond Fund California Tax Exempt Money Market 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
CNI Charter Funds Semi-Annual Report
2 Schedules of Investments
42 Statements of Assets & Liabilities
45 Statements of Operations
48 Statements of Changes in Net Assets
52 Financial Highlights
55 Notes to Financial Statements
63 Disclosure of Fund Expenses
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission for the first and third quarters of each
fiscal year on Form N-Q within sixty days after the end of the period. The
Funds' Form N-Q is available on the Commission's website at http://www.sec.gov,
and may be reviewed and copied at the Commission's Public Reference Room in
Washington, DC. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.The most current Form N-Q is also available
on the Funds' website at www.cnicharterfunds.com and without charge, upon
request, by calling 1-888-889-0799.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to the Funds' portfolio securities, and information on
how the Funds voted proxies relating to portfolio securities during the most
recent 12-month period ending June 30 is available (1) without charge, upon
request, by calling 1-888-889-0799, (2) on the Funds' website at
www.cnicharterfunds.com, and (3) on the Securities and Exchange Commission's
website at www.sec.gov.
CNI CHARTER FUNDS | PAGE 1
schedule of investments
MARCH 31, 2010 (UNAUDITED)
LARGE CAP VALUE EQUITY FUND
SECTOR WEIGHTINGS*:
[BAR GRAPH]
Financials 24.7%
Consumer Staples 11.9%
Industrials 11.8%
Consumer Discretionary 10.9%
Healthcare 10.7%
Energy 9.8%
Utilities 5.9%
Information Technology 5.6%
Telecommunication Services 3.8%
Short-Term Investments 2.7%
Materials 2.2%
*Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- ------------
COMMON STOCK [96.9%]
AEROSPACE & DEFENSE [3.4%]
General Dynamics 9,000 $ 695
Goodrich 16,400 1,156
Lockheed Martin 4,400 366
Northrop Grumman 4,500 295
Raytheon 17,400 994
------------
TOTAL AEROSPACE & DEFENSE 3,506
============
AIR FREIGHT & LOGISTICS [1.3%]
FedEx 14,600 1,364
============
AUTOMOBILES [0.1%]
Ford Motor* 10,000 126
============
BEVERAGES [2.3%]
Coca Cola 24,700 1,358
Coca Cola Enterprises 14,000 387
Molson Coors Brewing, Cl B 15,400 648
------------
TOTAL BEVERAGES 2,393
============
BIOTECHNOLOGY [1.0%]
Amgen* 4,000 239
Genzyme* 10,000 518
Gilead Sciences* 7,000 319
------------
TOTAL BIOTECHNOLOGY 1,076
============
CAPITAL MARKETS [5.3%]
Bank of New York Mellon 36,900 1,139
Goldman Sachs Group 11,200 1,911
Morgan Stanley 35,700 1,046
State Street 29,500 1,332
------------
TOTAL CAPITAL MARKETS 5,428
============
CHEMICALS [1.0%]
Dow Chemical 36,000 1,065
============
COMMERCIAL BANKS [4.8%]
BB&T 21,100 684
US Bancorp 49,000 1,268
Wells Fargo 94,960 2,955
------------
TOTAL COMMERCIAL BANKS 4,907
============
COMMERCIAL SERVICES & SUPPLIES [0.2%]
RR Donnelley & Sons 10,000 213
============
COMPUTERS & PERIPHERALS [2.3%]
Hewlett Packard 26,600 1,414
IBM 7,600 974
------------
TOTAL COMPUTERS & PERIPHERALS 2,388
============
CONSTRUCTION & ENGINEERING [0.5%]
Fluor 10,100 470
============
CONTAINERS & PACKAGING [0.7%]
Ball 13,200 705
============
DIVERSIFIED FINANCIAL SERVICES [6.5%]
Bank of America 140,000 2,499
JPMorgan Chase 83,200 3,723
Nasdaq OMX Group* 23,000 486
------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 6,708
============
DIVERSIFIED TELECOMMUNICATION SERVICES [3.7%]
AT&T 76,617 1,980
Verizon Communications 58,509 1,815
------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 3,795
============
ELECTRIC UTILITIES [3.8%]
Allegheny Energy 14,000 322
American Electric Power 13,000 444
Edison International 32,600 1,114
Entergy 6,800 553
FirstEnergy 7,600 297
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 2
schedule of investments
MARCH 31, 2010 (UNAUDITED)
LARGE CAP VALUE EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- ------ ------------
FPL Group 10,200 $ 493
PPL 24,100 668
------------
TOTAL ELECTRIC UTILITIES 3,891
============
ELECTRICAL EQUIPMENT [0.5%]
Emerson Electric 10,200 513
============
ELECTRONIC EQUIPMENT [0.7%]
Corning 37,100 750
============
ENERGY EQUIPMENT & SERVICES [0.9%]
ENSCO International 12,000 538
National Oilwell Varco 10,900 442
------------
TOTAL ENERGY EQUIPMENT & SERVICES 980
============
FOOD & STAPLES RETAILING [5.5%]
CVS 34,700 1,269
Kroger 30,800 667
Safeway 46,400 1,154
Sysco 15,000 442
Wal Mart Stores 38,000 2,113
------------
TOTAL FOOD & STAPLES RETAILING 5,645
============
FOOD PRODUCTS [2.3%]
Archer Daniels Midland 22,400 648
ConAgra Foods 23,500 589
Kraft Foods, Cl A 26,000 786
Sara Lee 27,000 376
------------
TOTAL FOOD PRODUCTS 2,399
============
HEALTH CARE EQUIPMENT & SUPPLIES [1.7%]
Baxter International 12,500 727
Becton Dickinson 5,500 433
Covidien 12,800 644
------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,804
============
HEALTH CARE PROVIDERS & SERVICES [2.5%]
Aetna 27,600 969
Cigna 18,500 677
McKesson 15,000 986
------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,632
============
HOTELS, RESTAURANTS & LEISURE [1.3%]
Carnival 14,300 556
Darden Restaurants 17,000 757
------------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,313
============
HOUSEHOLD DURABLES [1.5%]
Fortune Brands 14,000 679
Whirlpool 10,000 873
------------
TOTAL HOUSEHOLD DURABLES 1,552
============
HOUSEHOLD PRODUCTS [1.7%]
Procter & Gamble 28,500 1,803
============
INDUSTRIAL CONGLOMERATES [2.2%]
General Electric 95,500 1,738
Tyco International 13,600 520
------------
TOTAL INDUSTRIAL CONGLOMERATES 2,258
============
INSURANCE [8.1%]
ACE 24,600 1,287
Aflac 16,000 869
Allstate 17,000 549
Assurant 14,800 509
Chubb 25,000 1,296
MetLife 38,406 1,665
Travelers 27,000 1,456
Unum Group 30,000 743
------------
TOTAL INSURANCE 8,374
============
IT SERVICES [0.3%]
Western Union 16,000 271
============
MACHINERY [0.8%]
Eaton 3,900 296
Parker Hannifin 7,700 498
------------
TOTAL MACHINERY 794
============
MEDIA [3.6%]
CBS, Cl B 31,250 436
Comcast, Cl A 56,200 1,058
Omnicom Group 14,700 570
Time Warner 27,933 873
Viacom, Cl B* 23,000 791
------------
TOTAL MEDIA 3,728
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 3
schedule of investments
MARCH 31, 2010 (UNAUDITED)
LARGE CAP VALUE EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -------------
MULTILINE RETAIL [0.8%]
Target 15,500 $ 815
=============
MULTI-UTILITIES [2.1%]
PG&E 20,300 861
Public Service Enterprise Group 22,100 652
Sempra Energy 14,000 699
-------------
TOTAL MULTI-UTILITIES 2,212
=============
OIL, GAS & CONSUMABLE FUELS [8.9%]
Apache 6,000 609
Chevron 38,240 2,900
ConocoPhillips 31,580 1,616
Exxon Mobil 41,000 2,746
Occidental Petroleum 15,000 1,268
-------------
TOTAL OIL, GAS & CONSUMABLE FUELS 9,139
=============
PAPER & FOREST PRODUCTS [0.5%]
MeadWestvaco 20,400 521
=============
PHARMACEUTICALS [5.3%]
Abbott Laboratories 21,700 1,143
Bristol-Myers Squibb 41,000 1,095
Eli Lilly 16,000 579
Merck 23,100 863
Pfizer 104,000 1,784
-------------
TOTAL PHARMACEUTICALS 5,464
=============
ROAD & RAIL [2.9%]
CSX 24,400 1,242
Norfolk Southern 12,600 704
Union Pacific 14,500 1,063
-------------
TOTAL ROAD & RAIL 3,009
=============
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT [1.7%]
Intel 29,000 645
Texas Instruments 44,900 1,099
-------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1,744
=============
SOFTWARE [0.5%]
Microsoft 18,500 541
=============
SPECIALTY RETAIL [2.3%]
Best Buy 12,200 519
Lowe's 22,500 545
RadioShack 13,200 299
Ross Stores 9,000 481
Sherwin-Williams 8,200 555
-------------
TOTAL SPECIALTY RETAIL 2,399
=============
TEXTILES, APPAREL & LUXURY GOODS [1.3%]
Nike, Cl B 17,900 1,316
=============
WIRELESS TELECOMMUNICATION SERVICES [0.1%]
Sprint Nextel* 20,000 76
=============
TOTAL COMMON STOCK
(Cost $96,281) 100,087
=============
CASH EQUIVALENTS [2.7%]
Fidelity Institutional Domestic Money
Market Portfolio, Cl I, 0.140%** 1,468,694 1,468
Goldman Sachs Financial Square
Funds - Government Fund, 0.030%** 1,319,708 1,320
-------------
TOTAL CASH EQUIVALENTS
(Cost $2,788) 2,788
=============
TOTAL INVESTMENTS [99.6%]
(Cost $99,069) $ 102,875
=============
PERCENTAGES ARE BASED ON NET ASSETS OF $103,258 ($ THOUSANDS).
* 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 value ($ Thousands):
Level 1 Level 2 Level 3 Total
-------- -------- ------- --------
Investments in Securities
Common Stock $100,087 $ -- $ -- $100,087
Cash Equivalents 2,788 -- -- 2,788
-------- -------- ------- --------
Total Investments in Securities $102,875 $ -- $ -- $102,875
======== ======== ======= ========
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)
LARGE CAP GROWTH EQUITY FUND
SECTOR WEIGHTINGS*:
[BAR GRAPH]
Information Technology 31.8%
Healthcare 13.1%
Energy 11.4%
Consumer Staples 10.2%
Industrials 9.2%
Consumer Discretionary 8.5%
Financials 6.6%
Materials 4.4%
Short-Term Investments 2.7%
Telecommunication Services 1.9%
Utilities 0.2%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- ------ -----------
COMMON STOCK [96.9%]
AEROSPACE & DEFENSE [4.7%]
Boeing 3,900 $ 283
Honeywell International 3,200 145
L-3 Communications Holdings, Cl 3 3,000 275
Lockheed Martin 3,300 275
Precision Castparts 3,600 456
United Technologies 4,000 294
-----------
TOTAL AEROSPACE & DEFENSE 1,728
===========
AIR FREIGHT & LOGISTICS [0.8%]
Expeditors International of Washington 7,700 284
===========
BEVERAGES [2.5%]
Coca-Cola 5,800 319
PepsiCo 9,400 622
-----------
TOTAL BEVERAGES 941
===========
BIOTECHNOLOGY [3.9%]
Amgen* 4,000 239
Celgene* 7,000 434
Genzyme* 5,000 259
Gilead Sciences* 11,400 518
-----------
TOTAL BIOTECHNOLOGY 1,450
===========
CAPITAL MARKETS [4.1%]
Franklin Resources 4,500 499
Goldman Sachs Group 4,000 683
Invesco 5,800 127
T Rowe Price Group 3,500 192
-----------
TOTAL CAPITAL MARKETS 1,501
===========
CHEMICALS [1.5%]
Monsanto 4,200 300
Praxair 3,000 249
-----------
TOTAL CHEMICALS 549
===========
COMMERCIAL SERVICES & SUPPLIES [1.2%]
Republic Services, Cl A 7,500 218
RR Donnelley & Sons 9,900 211
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 429
===========
COMMUNICATIONS EQUIPMENT [4.8%]
Cisco Systems* 25,000 651
Harris 7,100 337
Qualcomm 19,000 798
-----------
TOTAL COMMUNICATIONS EQUIPMENT 1,786
===========
COMPUTERS & PERIPHERALS [9.1%]
Apple* 6,000 1,410
Hewlett-Packard 12,000 638
IBM 10,200 1,308
-----------
TOTAL COMPUTERS & PERIPHERALS 3,356
===========
CONSTRUCTION & ENGINEERING [0.9%]
Fluor 3,500 163
Jacobs Engineering Group* 3,700 167
-----------
TOTAL CONSTRUCTION & ENGINEERING 330
===========
CONSUMER FINANCE [0.4%]
American Express 4,000 165
===========
CONTAINERS & PACKAGING [0.4%]
Owens-Illinois* 4,500 160
===========
DIVERSIFIED FINANCIAL SERVICES [0.4%]
CME Group, Cl A 500 158
===========
DIVERSIFIED TELECOMMUNICATION SERVICES [1.9%]
AT&T 27,000 698
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 5
schedule of investments
MARCH 31, 2010 (UNAUDITED)
LARGE CAP GROWTH EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- ------ -----------
ELECTRIC UTILITIES [0.2%]
Edison International 2,200 $ 75
===========
ELECTRONIC EQUIPMENT [0.3%]
FLIR Systems* 4,500 127
===========
ENERGY EQUIPMENT & SERVICES [3.7%]
Baker Hughes 4,500 211
ENSCO International 5,000 224
Noble 5,000 209
Schlumberger 11,300 717
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 1,361
===========
FOOD & STAPLES RETAILING [0.9%]
Wal-Mart Stores 5,900 328
===========
FOOD PRODUCTS [1.2%]
Campbell Soup 3,500 124
Kellogg 5,700 304
-----------
TOTAL FOOD PRODUCTS 428
===========
HEALTH CARE EQUIPMENT & SUPPLIES [3.1%]
Bard (C.R.) 3,200 277
Baxter International 5,000 291
Medtronic 3,000 135
Stryker 7,500 429
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,132
===========
HEALTH CARE PROVIDERS & SERVICES [2.0%]
DaVita* 3,400 216
McKesson 3,300 217
UnitedHealth Group 9,000 294
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 727
===========
HOUSEHOLD PRODUCTS [4.8%]
Colgate-Palmolive 9,400 801
Procter & Gamble 15,102 956
-----------
TOTAL HOUSEHOLD PRODUCTS 1,757
===========
INSURANCE [1.0%]
Aflac 6,600 358
===========
INTERNET & CATALOG RETAIL [1.2%]
Amazon.com* 3,300 448
===========
INTERNET SOFTWARE & SERVICES [5.1%]
eBay* 20,000 539
Google, Cl A* 2,400 1,361
-----------
TOTAL INTERNET SOFTWARE & SERVICES 1,900
===========
IT SERVICES [2.1%]
Cognizant Technology Solutions, Cl A* 6,700 341
Mastercard, Cl A 1,000 254
Western Union 9,600 163
-----------
TOTAL IT SERVICES 758
===========
LIFE SCIENCES TOOLS & SERVICES [0.5%]
Life Technologies* 3,600 188
===========
MACHINERY [1.6%]
Caterpillar 5,700 358
Danaher 3,000 240
-----------
TOTAL MACHINERY 598
===========
MEDIA [1.7%]
Comcast, Cl A 13,000 244
DIRECTV, Cl A* 4,900 166
Omnicom Group 6,000 233
-----------
TOTAL MEDIA 643
===========
METALS & MINING [2.5%]
Allegheny Technologies 2,800 151
Freeport-McMoRan Copper & Gold 6,000 501
Newmont Mining 5,000 255
-----------
TOTAL METALS & MINING 907
===========
MULTILINE RETAIL [0.6%]
Target 4,000 210
===========
OIL, GAS & CONSUMABLE FUELS [7.7%]
Apache 3,300 335
EOG Resources 3,300 307
Exxon Mobil 16,000 1,071
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 6
schedule of investments
MARCH 31, 2010 (UNAUDITED)
LARGE CAP GROWTH EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------- ------ -----------
Hess 2,800 $ 175
Occidental Petroleum 7,000 592
Southwestern Energy* 3,000 122
XTO Energy 5,400 255
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 2,857
===========
PERSONAL PRODUCTS [0.8%]
Avon Products 8,300 281
===========
PHARMACEUTICALS [3.6%]
Abbott Laboratories 5,000 263
Allergan 3,600 235
Johnson & Johnson 10,364 676
Merck 4,000 150
-----------
TOTAL PHARMACEUTICALS 1,324
===========
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT [1.8%]
Intel 14,000 312
Texas Instruments 14,400 352
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 664
===========
SOFTWARE [8.4%]
Microsoft 62,180 1,820
Oracle 43,265 1,111
Salesforce.com* 2,200 164
-----------
TOTAL SOFTWARE 3,095
===========
SPECIALTY RETAIL [2.4%]
Autozone* 1,800 312
Best Buy 4,900 208
GameStop, Cl A* 8,100 178
TJX 4,500 191
-----------
TOTAL SPECIALTY RETAIL 889
===========
TEXTILES, APPAREL & LUXURY GOODS [2.5%]
Coach 14,100 557
Nike, Cl B 5,000 368
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 925
===========
THRIFTS & MORTGAGE FINANCE [0.6%]
Hudson City Bancorp 16,000 227
===========
TOTAL COMMON STOCK
(Cost $31,119) 35,742
===========
CASH EQUIVALENTS [2.7%]
Fidelity Institutional Domestic Money Market Portfolio, Cl I, 0.140%** 716,482 717
Goldman Sachs Financial Square Funds - Government Fund, 0.030%** 280,058 280
-----------
TOTAL CASH EQUIVALENTS
(Cost $997) 997
===========
TOTAL INVESTMENTS [99.6%]
(Cost $32,116) $ 36,739
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $36,893 ($ THOUSANDS).
* 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 value ($ Thousands):
Level 1 Level 2 Level 3 Total
--------- ------- ------- ---------
Investments in Securities
Common Stock $ 35,742 $ -- $ -- $ 35,742
Cash Equivalents 997 -- -- 997
--------- ------- ------- ---------
Total Investments in Securities $ 36,739 $ -- $ -- $ 36,739
========= ======= ======= =========
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 7
schedule of investments
MARCH 31, 2010 (UNAUDITED)
RCB SMALL CAP VALUE FUND
SECTOR WEIGHTINGS*:
[BAR GRAPH]
Financials 26.2%
Consumer Discretionary 18.3%
Materials 11.1%
Consumer Staples 10.9%
Information Technology 10.5%
Industrials 10.1%
Healthcare 7.4%
Short-Term Investments 5.5%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- ------- -----------
COMMON STOCK [93.5%]
CHEMICALS [7.1%]
Nalco Holding 18,300 $ 445
Spartech* 116,900 1,368
-----------
TOTAL CHEMICALS 1,813
===========
COMMERCIAL BANKS [4.5%]
TCF Financial 36,600 584
Wilmington Trust 34,900 578
-----------
TOTAL COMMERCIAL BANKS 1,162
===========
CONSTRUCTION MATERIALS [1.8%]
Eagle Materials 17,000 451
===========
DIVERSIFIED CONSUMER SERVICES [8.4%]
Coinstar* 33,300 1,082
Washington Post, Cl B 2,400 1,066
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 2,148
===========
FOOD PRODUCTS [4.6%]
Ralcorp Holdings* 17,200 1,166
===========
FOOD, BEVERAGE & TOBACCO [2.3%]
Universal 11,300 596
===========
HEALTH CARE EQUIPMENT & SUPPLIES [3.3%]
Teleflex 13,100 839
===========
HOTELS, RESTAURANTS & LEISURE [3.9%]
Wendy's/Arby's Group, Cl A 197,139 986
===========
HOUSEHOLD PRODUCTS [6.0%]
Central Garden & Pet, Cl A* 108,500 994
Scotts Miracle-Gro, Cl A 11,900 552
-----------
TOTAL HOUSEHOLD PRODUCTS 1,546
===========
INSURANCE [17.5%]
Alleghany* 3,914 1,138
First American 17,100 579
Hilltop Holdings* 44,300 521
Symetra Financial* 35,000 461
White Mountains Insurance Group 5,000 1,775
-----------
TOTAL INSURANCE 4,474
===========
INTERNET & CATALOG RETAIL [2.1%]
Liberty Media-Interactive, Ser A* 34,500 528
===========
INTERNET SOFTWARE & SERVICES [4.3%]
United Online 147,100 1,100
===========
IT SERVICES [2.1%]
Global Cash Access Holdings* 67,100 548
===========
LIFE SCIENCES TOOLS & SERVICES [4.1%]
PerkinElmer 43,600 1,042
===========
MACHINERY [8.0%]
Actuant, Cl A 24,100 471
Altra Holdings* 40,200 552
Crane 14,100 500
IDEX 15,400 510
-----------
TOTAL MACHINERY 2,033
===========
MEDIA [2.2%]
Liberty Media - Capital, Ser A* 15,902 578
===========
PROFESSIONAL SERVICES [2.0%]
GP Strategies* 62,600 523
===========
REAL ESTATE INVESTMENT TRUSTS [3.8%]
Chimera Investment 251,000 976
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 8
schedule of investments
MARCH 31, 2010 (UNAUDITED)
RCB SMALL CAP VALUE FUND (CONCLUDED)
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000)
- ----------- ------------------------ -----------
SOFTWARE [4.0%]
Fair Isaac 19,600 $ 497
PLATO Learning* 92,400 514
===========
TOTAL SOFTWARE 1,011
===========
SPECIALTY RETAIL [1.5%]
Syms* 38,162 380
===========
TOTAL COMMON STOCK
(Cost $18,325) 23,900
===========
REPURCHASE AGREEMENT (A) [5.4%]
Morgan Stanley 0.060%, dated 03/31/10, repurchased on 04/01/10, repurchase
price $1,382,259 (collateralized by a U.S. Treasury Note, par value
$1,432,003, 3.875%, 04/15/29, with total market value $1,409,902) $ 1,382 1,382
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $1,382) 1,382
===========
TOTAL INVESTMENTS [98.9%]
(Cost $19,707) $ 25,282
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $25,562 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY.
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
SER -- SERIES
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
--------- ------- ------- ---------
Investments in Securities
Common Stock $ 23,900 $ -- $ -- $ 23,900
Repurchase Agreement -- 1,382 -- 1,382
--------- ------- ------- ---------
Total Investments in Securities $ 23,900 $ 1,382 $ -- $ 25,282
========= ======= ======= =========
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 9
schedule of investments
MARCH 31, 2010 (UNAUDITED)
OPPORTUNISTIC VALUE FUND
SECTOR WEIGHTINGS*:
[BAR GRAPH]
Financials 23.8%
Healthcare 18.8%
Energy 15.2%
Information Technology 11.6%
Industrials 10.3%
Materials 8.2%
Consumer Staples 7.4%
Consumer Discretionary 4.7%
*Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- ------ ------------
COMMON STOCK [99.2%]
AEROSPACE & DEFENSE [1.7%]
Raytheon 5,300 $ 303
============
BEVERAGES [2.4%]
PepsiCo 6,400 423
============
CHEMICALS [2.6%]
Potash Corp of Saskatchewan 3,800 454
============
COMMERCIAL BANKS [9.3%]
BB&T 16,000 518
M&T Bank 3,100 246
US Bancorp 27,000 699
Wells Fargo 5,000 156
------------
TOTAL COMMERCIAL BANKS 1,619
============
COMMUNICATIONS EQUIPMENT [2.0%]
Nokia ADR 22,000 342
============
COMPUTERS & PERIPHERALS [2.4%]
Dell* 28,000 420
============
CONTAINERS & PACKAGING [3.5%]
Crown Holdings* 10,000 270
Sealed Air 16,000 337
------------
TOTAL CONTAINERS & PACKAGING 607
============
DIVERSIFIED FINANCIAL SERVICES [3.2%]
IntercontinentalExchange* 2,000 224
Nasdaq OMX Group* 16,000 338
------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 562
============
ELECTRICAL EQUIPMENT [2.6%]
Baldor Electric 12,000 449
============
ENERGY EQUIPMENT & SERVICES [5.4%]
Exterran Holdings* 18,000 435
Unit* 12,000 507
------------
TOTAL ENERGY EQUIPMENT & SERVICES 942
============
FOOD & STAPLES RETAILING [3.4%]
SUPERVALU 10,200 170
Walgreen 11,300 419
------------
TOTAL FOOD & STAPLES RETAILING 589
============
FOOD PRODUCTS [1.5%]
Del Monte Foods 18,000 263
============
HEALTH CARE EQUIPMENT & SUPPLIES [4.5%]
CareFusion* 16,300 431
Covidien 6,800 342
------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 773
============
HEALTH CARE PROVIDERS & SERVICES [8.9%]
Laboratory Corp of America Holdings* 4,900 371
McKesson 5,000 329
Patterson 11,000 341
Quest Diagnostics 8,600 501
------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,542
============
HOTELS, RESTAURANTS & LEISURE [1.6%]
Wendy's/Arby's Group, Cl A 54,000 270
============
INDUSTRIAL CONGLOMERATES [3.5%]
Tyco International 15,800 604
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 10
schedule of investments
MARCH 31, 2010 (UNAUDITED)
OPPORTUNISTIC VALUE FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------- ------ ------------
INSURANCE [8.0%]
Chubb 7,100 $ 368
HCC Insurance Holdings 18,000 497
Unum Group 21,000 520
------------
TOTAL INSURANCE 1,385
============
LEISURE EQUIPMENT & PRODUCTS [1.1%]
Mattel 8,200 187
============
LIFE SCIENCES TOOLS & SERVICES [1.5%]
Pharmaceutical Product Development 11,000 261
============
MACHINERY [2.4%]
AGCO* 11,800 423
============
MEDIA [2.0%]
Time Warner 11,166 349
============
METALS & MINING [2.0%]
Cliffs Natural Resources 5,000 355
============
OIL, GAS & CONSUMABLE FUELS [9.7%]
Chesapeake Energy 12,200 288
ConocoPhillips 3,600 184
Newfield Exploration* 8,700 453
Southwestern Energy* 8,400 342
Spectra Energy 11,000 248
Valero Energy 8,500 168
------------
TOTAL OIL, GAS & CONSUMABLE FUELS 1,683
============
PHARMACEUTICALS [3.8%]
Bristol-Myers Squibb 6,200 165
Mylan* 22,100 502
------------
TOTAL PHARMACEUTICALS 667
============
REAL ESTATE MANAGEMENT & DEVELOPMENT [3.1%]
Brookfield Asset Management, Cl A 21,000 534
============
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT [2.0%]
Applied Materials 26,000 351
============
SOFTWARE [5.1%]
Microsoft 12,800 375
Symantec* 30,000 507
------------
TOTAL SOFTWARE 882
============
TOTAL COMMON STOCK
(Cost $11,617) 17,239
============
TOTAL INVESTMENTS [99.2%]
(Cost $11,617) $ 17,239
============
PERCENTAGES ARE BASED ON NET ASSETS OF $17,374 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
-------- ------- ------- --------
Investments in Securities
Common Stock $ 17,239 $ -- $ -- $ 17,239
-------- ------- ------- --------
Total Investments in Securities $ 17,239 $ -- $ -- $ 17,239
======== ======= ======= ========
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)
MULTI-ASSET FUND
TYPE OF SECURITY WEIGHTINGS*:
[BAR GRAPH]
Exchange Traded Funds 52.1%
Affiliated Registered Investment Companies 25.2%
Short-Term Investments 11.0%
Registered Investment Companies 6.7%
U.S. Government Agency Obligations 2.6%
Municipal Bonds 2.4%
*Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- ------ ------------
EXCHANGE TRADED FUNDS [52.1%]
iPATH S&P 500 VIX Short-Term Futures Fund 35,911 $ 755
iShares MSCI EAFE Index Fund 25,740 1,441
iShares S&P MidCap 400 Index Fund 19,473 1,533
SPDR Barclays Capital High Yield Bond Fund 26,470 1,053
SPDR S&P 500 Fund 32,657 3,821
Vanguard Emerging Markets 39,413 1,662
Vanguard Small Cap Value 29,825 1,790
Vanguard Value 58,154 2,935
-----------
TOTAL EXCHANGE TRADED FUNDS
(Cost $13,525) 14,990
===========
AFFILIATED REGISTERED INVESTMENT COMPANIES [16.2%]
CNI Corporate Bond Fund, Institutional Class 220,844 2,343
CNI Government Bond Fund, Institutional Class 121,614 1,281
CNI High Yield Bond Fund Institutional Class 129,273 1,051
-----------
TOTAL AFFILIATED REGISTERED INVESTMENT COMPANIES
(Cost $4,587) 4,675
===========
REGISTERED INVESTMENT COMPANIES [15.6%]
Alpine International Real Estate Equity Fund 39,587 875
Cohen & Steers International Realty Fund, Inc. 99,405 1,049
Oppenheimer International Bond Fund, Class A 266,794 1,715
PIMCO Emerging Markets Bond Fund, Institutional Class 80,272 854
-----------
TOTAL REGISTERED INVESTMENT COMPANIES
(Cost $4,406) 4,493
===========
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
- ----------- ------------------------ -----------
U.S. GOVERNMENT AGENCY OBLIGATION [2.6%]
FNMA (A)
0.141%, 07/13/10 $ 750 $ 750
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $750) 750
===========
MUNICIPAL BOND [2.5%]
CALIFORNIA [2.5%]
State of California, Sub Ser A-2, RAN
3.000%, 06/23/10 700 703
-----------
TOTAL MUNICIPAL BOND
(Cost $702) 703
===========
CASH EQUIVALENT [10.9%]
Goldman Sachs Financial Square Funds - Government
Fund, 0.030%* 3,152,815 3,153
-----------
TOTAL CASH EQUIVALENT
(Cost $3,153) 3,153
===========
TOTAL INVESTMENTS [99.9%]
(Cost $27,123) $ 28,764
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $28,795 ($ THOUSANDS).
* 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.
EAFE -- EUROPE AUSTRALIASIA AND THE FAR EAST
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MSCI -- MORGAN STANLEY CAPITAL INTERNATIONAL
RAN -- REVENUE ANTICIPATION NOTE
SER -- SERIES
SPDR -- STANDARD & POOR'S DEPOSITARY RECEIPTS
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
-------- ------- ------- --------
Investments in Securities
Exchange Traded Funds $ 14,990 $ -- $ -- $ 14,990
Affiliated Registered Investment Compnies 4,675 -- -- 4,675
Registered Investment Companies 4,493 -- -- 4,493
U.S. Government Agency Obligation -- 750 -- 750
Municipal Bond -- 703 -- 703
Cash Equivalent 3,153 -- -- 3,153
-------- ------- ------- --------
Total Investments in Securities $ 27,311 $ 1,453 $ -- $ 28,764
======== ======= ======= ========
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 12
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CORPORATE BOND FUND
ISSUER INDUSTRY WEIGHTINGS*:
[BAR GRAPH]
Financials 35.6%
Industrials 25.8%
Banks 24.6%
Utilities 3.6%
Municipal Bonds 3.3%
U.S. Government Mortgage-Backed Obligations 2.4%
Telephone 2.0%
Short-Term Investments 1.1%
U.S. Treasury Obligations 0.6%
U.S. Government Agency Obligations 0.5%
Foreign Governments 0.5%
*Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
CORPORATE BONDS [90.8%]
APPLICATIONS SOFTWARE [2.0%]
Microsoft
4.200%, 06/01/19 $ 2,000 $ 2,026
===========
BANKS [20.8%]
ANZ National Int'l (A)
3.250%, 04/02/12 2,000 2,071
Bank of America, MTN
3.125%, 06/15/12 1,500 1,559
Barclays Bank (A)
6.050%, 12/04/17 1,000 1,031
Barclays Bank, MTN (B)
4.500%, 03/10/17 1,950 1,926
Citigroup Funding
2.250%, 12/10/12 2,500 2,541
Deutsche Bank
7.250%, 10/15/11 500 536
4.875%, 05/20/13 1,940 2,079
JPMorgan Chase Bank
6.000%, 10/01/17 1,000 1,066
PNC Funding, FDIC Insured
1.875%, 06/22/11 1,150 1,163
US Bank
6.375%, 08/01/11 1,485 1,581
Wachovia Bank
4.800%, 11/01/14 3,270 3,366
Wells Fargo, FDIC Insured
3.000%, 12/09/11 2,200 2,272
-----------
TOTAL BANKS 21,191
===========
CHEMICALS [1.0%]
Dow Chemical
8.550%, 05/15/19 835 1,010
===========
COMMUNICATION & MEDIA [3.1%]
Comcast Cable Communications Holdings
8.375%, 03/15/13 160 185
News America Holdings
9.250%, 02/01/13 475 558
Time Warner Entertainment
8.375%, 03/15/23 775 946
Walt Disney, MTN
5.700%, 07/15/11 1,395 1,479
-----------
TOTAL COMMUNICATION & MEDIA 3,168
===========
COMPUTER SYSTEM DESIGN & SERVICES [5.9%]
Cisco Systems
5.500%, 02/22/16 1,250 1,393
Dell
5.625%, 04/15/14 1,000 1,100
Hewlett-Packard
6.125%, 03/01/14 1,475 1,661
International Business Machines
7.625%, 10/15/18 1,500 1,847
-----------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 6,001
===========
DIVERSIFIED OPERATIONS [0.5%]
3M, MTN
4.375%, 08/15/13 500 536
===========
DRUGS [2.3%]
Wyeth
6.950%, 03/15/11 2,170 2,302
===========
ELECTRIC UTILITIES [2.9%]
Alabama Power
4.850%, 12/15/12 1,430 1,543
American Electric Power
5.250%, 06/01/15 490 524
Exelon
4.900%, 06/15/15 889 927
-----------
TOTAL ELECTRIC UTILITIES 2,994
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 13
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CORPORATE BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
FINANCE AUTO LOANS [2.8%]
American Honda Finance, MTN (A)
5.125%, 12/15/10 $ 1,000 $ 1,030
Toyota Motor Credit
4.350%, 12/15/10 1,800 1,843
-----------
TOTAL FINANCE AUTO LOANS 2,873
===========
FINANCIAL SERVICES [16.0%]
AXA Financial
7.750%, 08/01/10 1,000 1,022
Boeing Capital
6.500%, 02/15/12 930 1,016
CME Group
5.400%, 08/01/13 95 103
General Electric Capital,
FDIC Insured
2.200%, 06/08/12 2,805 2,857
General Electric Capital,
Ser A, MTN
6.000%, 06/15/12 2,180 2,363
GMAC
2.200%, 12/19/12 4,500 4,568
HSBC Finance
5.250%, 04/15/15 1,250 1,312
Irish Life & Permanent Group
Holdings (A)
3.600%, 01/14/13 2,000 1,996
National Rural Utilities,
Ser C, MTN
7.250%, 03/01/12 1,000 1,100
-----------
TOTAL FINANCIAL SERVICES 16,337
===========
FOOD, BEVERAGE & TOBACCO [3.9%]
Anheuser-Busch
7.500%, 03/15/12 665 736
Bottling Group
5.500%, 04/01/16 1,000 1,099
4.625%, 11/15/12 1,435 1,541
General Mills
6.000%, 02/15/12 560 609
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 3,985
===========
FOREIGN GOVERNMENTS [0.5%]
United Mexican States, MTN
5.875%, 01/15/14 450 495
===========
INVESTMENT BANKER/BROKER DEALER [13.8%]
Citigroup
5.850%, 08/02/16 1,000 1,025
5.500%, 02/15/17 250 247
Credit Suisse
5.500%, 08/15/13 1,250 1,368
Goldman Sachs Group
5.625%, 01/15/17 1,760 1,803
Jefferies Group
8.500%, 07/15/19 900 998
JPMorgan Chase
2.125%, 12/26/12 2,500 2,535
Macquarie Group (A)
6.000%, 01/14/20 2,000 1,995
Merrill Lynch
6.050%, 05/16/16 2,025 2,065
Morgan Stanley, MTN
5.500%, 01/26/20 2,060 2,015
-----------
TOTAL INVESTMENT BANKER/BROKER DEALER 14,051
===========
MULTI-LINE INSURANCE [1.7%]
MetLife
7.717%, 02/15/19 1,490 1,740
===========
PETROLEUM & FUEL PRODUCTS [4.3%]
ConocoPhillips Canada Funding I
5.625%, 10/15/16 2,000 2,226
Duke Capital
5.500%, 03/01/14 625 666
Shell International Finance BV
3.250%, 09/22/15 1,500 1,508
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 4,400
===========
REAL ESTATE INVESTMENT TRUSTS [2.2%]
Kimco Realty
6.875%, 10/01/19 1,080 1,138
ProLogis
7.625%, 08/15/14 1,000 1,093
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS 2,231
===========
RETAIL [3.1%]
Home Depot
5.250%, 12/16/13 1,000 1,083
Kohl's
6.300%, 03/01/11 1,000 1,045
Kroger
5.500%, 02/01/13 450 486
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 14
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CORPORATE BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Target
5.875%, 07/15/16 $ 500 $ 567
-----------
TOTAL RETAIL 3,181
===========
SPECIAL PURPOSE BANKS [2.0%]
Dexia Credit Local (A)
2.750%, 01/10/14 2,000 2,018
===========
TELEPHONES & TELECOMMUNICATIONS [2.0%]
Deutsche Telekom International
Finance
5.250%, 07/22/13 475 509
New Cingular Wireless Services
8.125%, 05/01/12 400 452
Verizon Communications
5.550%, 02/15/16 1,000 1,093
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,054
===========
TOTAL CORPORATE BONDS
(Cost $88,947) 92,593
===========
MUNICIPAL BONDS [3.3%]
CALIFORNIA [2.3%]
California State, City of
Industry, Sales Tax Project,
RB, NATL-RE
5.000%, 01/01/12 955 972
Irvine Ranch Water District,
RB, ETM
8.180%, 03/15/14 1,200 1,316
-----------
TOTAL CALIFORNIA 2,288
===========
WISCONSIN [1.0%]
De Pere, Unified School District,
GO, FGIC
Pre-Refunded @ 100 (C)
4.500%, 10/01/11 995 1,052
===========
TOTAL MUNICIPAL BONDS
(Cost $3,287) 3,340
===========
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
- ----------- ------------------------ -----------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS [2.4%]
FHLMC REMIC, Ser 2982,
Cl NB
5.500%, 02/15/29 $ 390 $ 401
FHLMC REMIC, Ser R004,
Cl A1
5.125%, 12/15/13 369 383
FHLMC REMIC, Ser R015,
Pool FHRR R015 AN, Cl AN
3.750%, 02/15/13 252 256
FNMA REMIC, Ser 2002-56,
Cl MC
5.500%, 09/25/17 540 572
FNMA REMIC, Ser 2006-B1,
Cl AB
6.000%, 06/25/16 126 132
FNMA REMIC, Ser 2007-B1,
Cl BE
5.450%, 12/25/20 622 665
===========
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $2,306) 2,409
===========
U.S. TREASURY OBLIGATION [0.6%]
U.S. Treasury Inflation Protection
Security
2.000%, 01/15/14 586 622
-----------
TOTAL U.S. TREASURY OBLIGATION
(Cost $596) 622
===========
U.S. GOVERNMENT AGENCY OBLIGATION [0.5%]
FHLMC
5.500%, 09/15/11 460 491
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $477) 491
===========
CASH EQUIVALENT [1.0%]
Goldman Sachs Financial Square
Funds - Government Fund,
0.030%* 1,076,854 1,077
-----------
TOTAL CASH EQUIVALENT
(Cost $1,077) 1,077
===========
TOTAL INVESTMENTS [98.6%]
(Cost $96,690) $ 100,532
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 15
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CORPORATE BOND FUND (CONCLUDED)
PERCENTAGES ARE BASED ON NET ASSETS OF $101,912 ($ THOUSANDS).
* 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 $10,141(000), REPRESENTING 9.9% OF
THE NET ASSETS OF THE FUND.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON
MARCH 31, 2010.
(C) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
CL -- CLASS
ETM -- ESCROW TO MATURITY
FDIC -- FEDERAL DEPOSITARY INSURANCE CORPORATION
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
MTN -- MEDIUM TERM NOTE
NATL-RE -- NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION (FORMERLY MUNICIPAL
BOND INSURANCE COMPANY 'MBIA')
RB -- REVENUE BOND
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
------- ------- ------- ---------
Investments in Securities
Corporate Bonds $ -- $ 92,593 $ -- $ 92,593
Municipal Bonds -- 3,340 -- 3,340
U.S. Government Mortgage-Backed
Obligations -- 2,409 -- 2,409
U.S. Treasury Obligation -- 622 -- 622
U.S. Government Agency Obligation -- 491 -- 491
Cash Equivalent 1,077 -- -- 1,077
------- -------- ------- ---------
Total Investments in Securities $ 1,077 $ 99,455 $ -- $ 100,532
======= ======== ======= =========
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)
GOVERNMENT BOND FUND
TYPE OF SECURITY WEIGHTINGS*:
[BAR GRAPH]
U.S. Government Agency Obligations 63.1%
U.S. Government Mortgage-Backed Obligations 34.1%
Short-Term Investments 2.8%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS [65.8%]
FFCB
3.600%, 03/22/17 $ 5,000 $ 4,995
FHLB
5.250%, 06/18/14 4,000 4,448
4.805%, 08/20/15 12,068 12,922
3.500%, 12/09/16 5,000 4,999
3.250%, 09/12/14 7,000 7,197
3.125%, 12/13/13 5,000 5,196
3.000%, 12/30/12 (A) 5,000 5,037
2.450%, 02/12/14 5,000 5,007
1.850%, 12/21/12 1,500 1,494
1.125%, 10/15/10 (A) 4,980 4,986
FHLMC, MTN
2.000%, 06/18/12 (A) 5,000 4,976
2.000%, 11/05/12 5,000 5,021
FNMA
4.625%, 05/01/13 7,000 7,473
3.100%, 03/22/16 5,000 4,984
3.000%, 07/28/14 9,380 9,450
2.900%, 04/07/14 8,950 9,004
2.625%, 12/10/14 5,180 5,126
-------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATION
(Cost $97,102) 102,315
=============
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS [30.7%]
FHLMC REMIC, Ser R002,
Cl AH
4.750%, 07/15/15 734 750
FHLMC REMIC, Ser R003,
Cl AG
5.125%, 10/15/15 1,011 1,037
FHLMC REMIC, Ser R004,
Cl A1
5.125%, 12/15/13 7,349 7,642
FHLMC REMIC, Ser R005,
Cl AB
5.500%, 12/15/18 566 592
FHLMC REMIC, Ser R007,
Cl AC
5.875%, 05/15/16 664 680
FHLMC REMIC, Ser R009,
Cl AK
5.750%, 12/15/18 645 674
FHLMC REMIC, Ser R010,
Cl AB
5.500%, 12/15/19 2,608 2,727
FHLMC REMIC, Ser R011,
Cl AB
5.500%, 12/15/20 9,604 10,064
FHLMC REMIC, Ser R012,
Cl AB
5.500%, 12/15/20 891 930
FHLMC REMIC, Ser R013,
Cl AB
6.000%, 12/15/21 1,021 1,063
FHLMC REMIC, Ser R014,
Cl AL
5.500%, 10/15/14 3,646 3,704
FHLMC REMIC, Ser R015,
Cl AN
3.750%, 02/15/13 4,423 4,480
FHLMC REMIC, Ser R016,
Cl AM
5.125%, 06/15/18 2,201 2,286
FNMA, Ser 2005-25, Cl VH
5.000%, 04/25/16 4,066 4,358
FNMA ARM (B)
4.548%, 03/01/34 477 496
FNMA REMIC, Ser 2005-119,
Cl DG
5.500%, 01/25/36 92 92
FNMA REMIC, Ser R009,
Cl AJ
5.750%, 12/15/18 5,100 5,320
GNMA
8.000%, 08/15/22 11 13
7.500%, 06/15/24 5 5
7.500%, 05/15/26 5 6
7.500%, 04/15/32 31 34
7.000%, 12/15/16 12 13
6.000%, 01/15/29 12 13
GNMA ARM (B)
3.000%, 08/20/35 111 113
2.625%, 04/20/35 529 540
-------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $52,247) 47,632
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 17
schedule of investments
MARCH 31, 2010 (UNAUDITED)
GOVERNMENT BOND FUND (CONCLUDED)
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000)
- ----------- ------------------------ -------------
CASH EQUIVALENT [1.5%]
Goldman Sachs Financial Square
Funds - Government Fund,
0.030%* 2,296,828 $ 2,297
-------------
TOTAL CASH EQUIVALENT
(Cost $2,297) 2,297
=============
REPURCHASE AGREEMENT (C) [1.3%]
Barclays
0.010%, dated 03/31/10, repurchased on
04/01/10, repurchase price $2,000,001
(collateralized by U.S. Government
obligation, par value $1,784,300;
with total market value $2,040,075) $ 2,000 2,000
=============
TOTAL REPURCHASE AGREEMENT
(Cost $2,000) 2,000
=============
TOTAL INVESTMENTS [99.3%]
(Cost $153,646) $ 154,244
=============
PERCENTAGES ARE BASED ON NET ASSETS OF $155,398 ($ THOUSANDS).
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010.
(A) STEP BOND -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31,
2010. THE COUPON ON A STEP BOND CHANGES ON A SPECIFIC DATE.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON
MARCH 31, 2010.
(C) TRI-PARTY REPURCHASE AGREEMENT
ARM -- ADJUSTABLE RATE MORTGAGE
CL -- CLASS
FFCB -- FEDERAL FARM CREDIT BANK
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
------- --------- ------- ---------
Investments in Securities
U.S. Government Agency
Obligations $ -- $ 102,315 $ -- $ 102,315
U.S. Government
Mortgage-Backed
Obligations -- 47,632 -- 47,632
Cash Equivalent 2,297 -- -- 2,297
Repurchase Agreement -- 2,000 -- 2,000
------- --------- ------- ---------
Total Investments in Securities $ 2,297 $ 151,947 $ -- $ 154,244
======= ========= ======= =========
The following is a reconciliation of investments in which significant
unobservable inputs (Level 3) were used in determining value:
Investments in
Securities
--------------
Beginning balance as of October 1, 2009 $ 2,618
Accrued discounts/premiums --
Realized gain/(loss) --
Change in unrealized --
appreciation/(depreciation)
Net purchases/sales --
Net transfer in and/or out of Level 3 (2,618)
----------
Ending balance as of March 31, 2010 $ --
==========
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
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND
ISSUER INDUSTRY WEIGHTINGS*:
General Revenue 23.8%
General Obligation 15.9%
Education 14.7%
Power 11.3%
Public Facilities 10.0%
Water 10.0%
Transportation 4.7%
Healthcare 3.2%
Industrial Development 2.7%
Short-Term Investments 1.9%
Housing 1.8%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
MUNICIPAL BONDS [97.5%]
ARIZONA [2.1%]
Arizona State, School Facilities
Board, Ser C, COP, AGM
Callable 09/01/14 @ 100
5.000%, 09/01/15 $ 750 $ 826
=========
CALIFORNIA [83.5%]
Antelope Valley, Unified High School
District, Ser A, GO, NATL-RE
Callable 08/01/12 @ 101
5.000%, 08/01/23 250 257
Azusa, Redevelopment Agency,
Mortgage-Backed Securities
Program, Ser A, RB, FNMA,
ETM (A)
6.875%, 10/01/12 200 228
Banning, Financing Authority,
Election Systems Project,
RB, XLCA
Callable 06/01/17 @ 100
5.000%, 06/01/22 805 799
Bay Area, Infrastructure Financing
Authority, State Payment
Acceleration Project, RB, XLCA
Callable 08/01/11 @ 100
5.000%, 08/01/14 500 510
Bay Area, Infrastructure Financing
Authority, State Payment
Acceleration Project, RB,
NATL-RE FGIC
Callable 08/01/14 @ 100
5.000%, 08/01/17 350 356
Burbank, Public Financing
Authority, Golden State
Redevelopment Project,
Ser A,TA, AMBAC
Callable 12/01/13 @ 100
5.250%, 12/01/18 100 105
Burbank, Public Financing
Authority, Golden State
Redevelopment Project,
Ser A,TA, AMBAC
Pre-Refunded @ 100 (B)
5.250%, 12/01/13 75 85
California State, Department
of Water Resources, Power
Supply Project, Ser H, RB, AGM
Callable 05/01/18 @ 100
5.000%, 05/01/21 750 831
California State, Department
of Water Resources,Water
Systems Project, Ser J-2, RB
7.000%, 12/01/12 500 581
California State, Department
of Water Resources,Water
Systems Project, Ser Y, RB,
NATL-RE FGIC
Callable 06/01/13 @ 100
5.250%, 12/01/19 500 545
California State, Economic
Recovery Authority, Ser A,
GO, NATL-RE
Callable 07/01/14 @ 100
5.000%, 07/01/15 500 550
California State, Educational
Facilities Authority, Stanford
University Project, Ser T-4, RB
5.000%, 03/15/14 350 397
California State, GO
Callable 02/01/12 @ 100
5.000%, 02/01/18 175 180
California State, GO
Pre-Refunded @ 100 (B)
5.250%, 09/01/10 10 10
California State, GO
Pre-Refunded @ 100 (B)
5.250%, 09/01/10 25 26
California State, GO
Pre-Refunded @ 100 (B)
5.250%, 10/01/10 20 21
California State, GO
5.500%, 04/01/19 500 542
California State, GO
5.000%, 03/01/19 500 524
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 19
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
California State, Ser A, GO,
NATL-RE FGIC
Callable 07/01/11 @ 100
5.000%, 07/01/17 $ 500 $ 520
California State, Ser B, GO (D)
4.000%, 07/01/23 750 798
California State, Infrastructure &
Economic Authority, Bay
Area Toll Bridges Project,
Ser A, RB, AGM
Pre-Refunded @ 100 (B)
5.250%, 07/01/13 125 141
California State, Public Works
Board Lease, Department of
Corrections Project,
Ser B, RB, NATL-RE
Callable 05/06/10 @ 100
5.000%, 09/01/21 100 98
California State, Public Works
Board Lease, Department of
Corrections-Administration
Project, Ser A, RB, AMBAC
Callable 03/01/12 @ 100
5.250%, 03/01/18 155 157
California State, Public Works
Board Lease, Department of
Mental Health Project,
Ser A, RB
5.250%, 06/01/13 200 217
Carlsbad, Public Financing
Authority, Municipal Golf
Course Project, Ser A, RB,
AMBAC
4.500%, 09/01/16 350 384
Castaic Lake,Water Agency,Water
Systems Improvement Project,
Ser A, COP, NATL-RE
7.000%, 08/01/13 300 350
Corona, Public Financing
Authority, City Hall Project,
Ser B, RB, NATL-RE
Callable 09/01/12 @ 100
5.250%, 09/01/16 350 363
Culver City, Redevelopment
Finance Authority,TA, AMBAC
5.500%, 11/01/14 65 67
Dry Creek, Joint Elementary
School District, Ser A, GO, AGM
0.000%, 08/01/11 200 196
Escondido, Union School
District, Refunding &
Financing Project, COP,
NATL-RE
4.750%, 07/01/19 735 797
Fresno, Unified School District,
Election 2001 Project, Ser D,
GO, NATL-RE
Callable 08/01/13 @ 102
5.000%, 08/01/17 200 212
Gilroy, Unified School District, GO,
NATL-RE FGIC
Callable 08/01/13 @ 100
5.250%, 08/01/19 800 842
Golden State,Tobacco Settlement,
Ser A, RB, AMBAC
Callable 06/01/10 @ 100
5.000%, 06/01/20 500 490
Golden State,Tobacco Settlement,
Ser A-1, RB
Pre-Refunded @ 100 (B)
6.750%, 06/01/13 920 1,069
Hawthorne, School District,
COP, AGM
Pre-Refunded @ 101 (B)
6.000%, 11/01/10 455 466
Jefferson Unified High School
District, Ser A, GO,
NATL-RE FGIC
5.000%, 08/01/14 200 217
Kern, High School District,
GO, ETM
7.100%, 08/01/12 290 331
Long Beach Community College
District, Ser A, GO
9.850%, 01/15/13 500 595
Los Angeles County, Metropolitan
Transportation Authority,
Proposition C, Ser A, RB,
NATL-RE
Callable 07/01/14 @ 100
5.000%, 07/01/16 200 220
Los Angeles County, Metropolitan
Transportation Authority,
Ser B, RB, AGM
Callable 07/01/11 @ 101
5.250%, 07/01/15 250 265
Los Angeles County, Sanitation
Districts Financing Authority,
Capital Projects (District #14),
Sub-Ser B, RB, NATL-RE
FGIC
3.750%, 10/01/14 175 183
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 20
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Los Angeles, Department of
Water & Power, Power Systems
Project, Ser A Sub-Ser-Ser A-1,
RB, NATL-RE
5.000%, 07/01/12 $ 665 $ 724
Los Angeles, Municipal
Improvement Authority,
Central Library Project, Ser A,
RB, NATL-RE
Callable 06/01/12 @ 100
5.500%, 06/01/18 500 534
Los Angeles, Municipal
Improvement Authority,
Central Library Project, Ser A,
RB, NATL-RE
5.250%, 06/01/12 300 323
Los Angeles, Municipal
Improvement, Ser E, RB
5.000%, 09/01/15 200 222
Los Angeles, Ser A, GO, AGM
Callable 09/01/12 @ 100
5.000%, 09/01/20 750 803
Los Angeles, Unified School
District, COP, AMBAC
5.000%, 10/01/12 750 804
Los Angeles, Unified School
District, Ser A-1, GO, NATL-RE
Callable 07/01/14 @ 100
5.000%, 07/01/17 125 135
Los Angeles,Wastewater Systems
Authority, Ser A, RB
5.000%, 06/01/14 750 844
North Orange County,
Community College District,
Ser A, GO, NATL-RE
Pre-Refunded @ 101 (B)
5.375%, 08/01/12 525 581
Northern California, Power
Agency, Hydroelectric Project,
Ser A, RB, NATL-RE
Pre-Refunded @ 100 (B)
5.125%, 07/01/10 750 759
Oakley, Civic Center Project, COP
4.000%, 05/01/12 230 239
Orange County, Public
Financing Authority, RB,
NATL-RE
5.000%, 07/01/17 1,000 1,087
Orange County, Sanitation
District, Ser A, COP
3.000%, 02/01/17 500 499
Oxnard, School District,
Election 2006 Project,
Ser A, GO, CIFG
6.750%, 08/01/11 300 323
Pinole, Redevelopment Agency,
Pinole Vista Redevelopment
Project,TA, AGM
Callable 05/06/10 @ 101
5.250%, 08/01/14 100 101
Port of Oakland, Ser C,
RB, NATL-RE
5.000%, 11/01/15 450 493
Redwoods, Community College
District, 2004 Election Project,
Ser A, GO, NATL-RE
Callable 08/01/14 @ 100
5.000%, 08/01/23 420 432
Sacramento County, Sanitation
District Authority, Sub-Ser B, RB
Callable 04/05/10 @ 100 (C) (D)
0.280%, 12/01/37 500 500
Sacramento, City Financing
Authority, EPA Building
Project, Ser A, RB, AMBAC
Callable 05/06/10 @ 100
4.750%, 05/01/17 525 528
Sacramento, Municipal Utility
District, RB, NATL-RE
Callable 08/15/13 @ 100
5.000%, 08/15/19 500 520
Sacramento, Municipal Utility
District, Ser T, RB,
NATL-RE FGIC
Callable 05/15/14 @ 100
5.250%, 05/15/22 805 836
San Diego, Public Facilities
Financing Authority, Ser B, RB
5.000%, 05/15/14 750 840
San Diego, Unified School
District, Election 1998 Project,
Ser D, GO, FGIC
Callable 07/01/12 @ 100
5.000%, 07/01/27 500 541
San Diego, Unified School
District, Election 1998 Project,
Ser E, GO, AGM
Callable 07/01/13 @ 101
5.250%, 07/01/16 100 113
San Francisco (City & County),
Public Utilities Commission,
Ser B, RB
5.000%, 11/01/19 750 851
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 21
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
San Francisco City & County,
Redevelopment Agency,
Ser B,TA, NATL-RE FGIC
Callable 08/01/13 @ 100
5.250%, 08/01/18 $ 600 $ 614
San Francisco, Bay Area Transit
Financing Authority, Ser A,
RB, NATL-RE
Callable 07/01/15 @ 100
5.000%, 07/01/24 550 583
Santa Margarita, Dana Point
Authority, Ser A, RB, AMBAC
Callable 08/01/14 @ 100
5.000%, 08/01/15 165 183
Solano County, COP, NATL-RE
Pre-Refunded @ 100 (B)
5.250%, 11/01/12 100 110
Southern California, Metropolitan
Water District Authority,
Ser A, RB
5.750%, 07/01/21 280 326
Southern Kern, Unified School
District, Ser A, GO,
NATL-RE FGIC
Callable 11/01/13 @ 100
4.500%, 11/01/18 220 224
Tamalpais, Unified High School
District, GO, NATL-RE
Callable 08/01/11 @ 101
4.875%, 08/01/17 100 103
University of California, Multiple
Purpose Projects, Ser Q,
RB, AGM
Callable 09/01/11 @ 101
5.000%, 09/01/22 500 524
University of California, Ser B,
RB, AGM
Callable 05/15/13 @ 101
5.000%, 05/15/20 750 805
University of California, UCLA
Medical Center Project, Ser B,
RB, AMBAC
Pre-Refunded @ 100 (B)
5.500%, 05/15/14 500 579
---------
TOTAL CALIFORNIA 33,208
=========
ILLINOIS [0.8%]
Cook County Forest Preservation
District, GO, AMBAC
Callable 11/15/14 @ 100
5.250%, 11/15/15 300 334
=========
MISSOURI [0.6%]
St Louis, Parking Facilities
Authority, Downtown Parking
Facilities Project, Sub-Ser A,
RB Pre-Refunded @ 100 (B)
6.000%, 02/01/12 200 217
=========
NEW JERSEY [0.9%]
New Jersey State,Turnpike
Authority, Ser C, RB,
NATL-RE, ETM
6.500%, 01/01/16 315 368
=========
NEW MEXICO [1.0%]
Santa Fe, Educational Facilities
Authority, College of Santa Fe
Project, RB
Pre-Refunded @ 100 (B)
5.750%, 10/01/14 350 407
=========
NEW YORK [2.7%]
New York City Housing
Development, Ser F, RB
Callable 05/01/11 @ 100
1.950%, 11/01/12 500 500
New York State, Local
Assistance Correction
Authority, Ser E, RB
6.000%, 04/01/14 500 564
---------
TOTAL NEW YORK 1,064
=========
SOUTH CAROLINA [2.1%]
Columbia,Tourism Development
Fee Pledge Project, COP,
AMBAC
Callable 06/01/13 @ 100
5.250%, 06/01/16 350 369
South Carolina, Jobs &
Economic Development
Authority, Palmetto Health
Project, Ser C, RB
Pre-Refunded @ 100 (B)
6.875%, 08/01/13 400 469
---------
TOTAL SOUTH CAROLINA 838
=========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 22
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
- ----------- ------------------------ -----------
TEXAS [0.3%]
San Angelo,Waterworks & Sewer
System Authority, Refunding
& Improvements Projects, RB,
AGM Callable 04/01/11 @ 100
5.250%, 04/01/19 $ 100 $ 102
==========
WASHINGTON [0.9%]
King County, NJB Properties
Project, Ser A, RB
5.000%, 12/01/14 325 367
==========
WEST VIRGINIA [1.3%]
West Virginia State, Economic
Development Authority,
Correctional Juvenile Project,
Ser A, RB, NATL-RE
Callable 06/01/12 @ 101
5.500%, 06/01/17 500 520
==========
PUERTO RICO [1.3%]
Puerto Rico Sales Tax Financing,
Sub-Ser A, RB
4.000%, 08/01/16 500 527
==========
TOTAL MUNICIPAL BONDS
(Cost $37,966) 38,778
==========
CASH EQUIVALENT [1.9%]
Federated California Municipal
Money Market Fund, Cl I,
0.090%* 733,017 733
----------
TOTAL CASH EQUIVALENT
(Cost $733) 733
==========
TOTAL INVESTMENTS [99.4%]
(Cost $38,699) $ 39,511
==========
PERCENTAGES ARE BASED ON NET ASSETS OF $39,769 ($ THOUSANDS).
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010.
(A) SECURITIES ARE COLLATERALIZED UNDER AN AGREEMENT FROM FNMA.
(B) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR
BANK OR FINANCIAL INSTITUTION.
(D) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON
MARCH 31, 2010.
AGM -- ASSURED GUARANTY MUNICIPAL
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
CIFG -- CDC IXIS FINANCIAL GUARANTEE
CL -- CLASS
COP -- CERTIFICATE OF PARTICIPATION
ETM -- ESCROW TO MATURITY
FGIC -- FINANCIAL GUARANTEE INSURANCE COMPANY
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
NATL-RE -- NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION (FORMERLY MBIA-IL)
RB -- REVENUE BOND
SER -- SERIES
TA -- TAX ALLOCATION
XLCA -- XL CAPITAL ASSURANCE
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
------- -------- ------- --------
Investments in Securities
Municipal Bonds $ -- $ 38,778 $ -- $ 38,778
Cash Equivalent 733 -- -- 733
------- -------- ------- --------
Total Investments in Securities $ 733 $ 38,758 $ -- $ 39,511
======= ======== ======= ========
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 23
schedule of investments
MARCH 31, 2010 (UNAUDITED)
HIGH YIELD BOND FUND
ISSUER INDUSTRY WEIGHTINGS*:
[BAR GRAPH]
Industrials 61.1%
Financials 13.7%
Short-Term Investments 11.0%
Utilities 5.0%
Telecommunication Services 3.8%
Transportation 3.3%
Tax Exempt 2.0%
Common Stock 0.1%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
CORPORATE BONDS [92.8%]
ADVERTISING AGENCIES [1.0%]
MDC Partners (A)
11.000%, 11/01/16 $ 450 $ 487
===========
AEROSPACE & DEFENSE [2.2%]
Global Aviation Holdings (A)
14.000%, 08/15/13 500 508
L-3 Communications
5.875%, 01/15/15 200 204
Sequa (A)
13.500%, 12/01/15 5 5
Wyle Services (A)
10.500%, 04/01/18 325 325
-----------
TOTAL AEROSPACE & DEFENSE 1,042
===========
AIRLINES [2.9%]
DAE Aviation Holdings (A)
11.250%, 08/01/15 150 140
Delta Air Lines (A)
12.250%, 03/15/15 400 426
United Airlines
10.400%, 11/01/16 280 301
9.875%, 08/01/13 (A) 245 257
9.750%, 01/15/17 215 227
-----------
TOTAL AIRLINES 1,351
===========
ATHLETIC EQUIPMENT [0.4%]
Easton-Bell Sports (A)
9.750%, 12/01/16 190 200
===========
AUTO RENT & LEASE [0.8%]
Avis Budget Car Rental
7.750%, 05/15/16 100 98
H&E Equipment Services
8.375%, 07/15/16 100 97
Hertz
10.500%, 01/01/16 150 161
-----------
TOTAL AUTO RENT & LEASE 356
===========
AUTOMOTIVE [0.4%]
UCI Holdco (B)
8.257%, 12/15/13 212 199
===========
AUTOPARTS [0.2%]
Asbury Automotive Group
7.625%, 03/15/17 100 95
===========
B2B/E-COMMERCE [1.0%]
GXS Worldwide (A)
9.750%, 06/15/15 500 481
===========
BANKS [1.0%]
CIT Group
7.000%, 05/01/16 500 461
===========
BROADCASTING & CABLE [3.0%]
Allbritton Communications
7.750%, 12/15/12 72 72
Atlantic Broadband Finance
9.375%, 01/15/14 100 100
Barrington Broadcasting Group
10.500%, 08/15/14 100 88
Bonten Media Acquisition (A)
9.000%, 06/01/15 165 80
Coleman Cable (A)
9.000%, 02/15/18 450 455
CSC Holdings
7.625%, 07/15/18 100 104
Fisher Communications
8.625%, 09/15/14 150 147
Local TV Finance (A)
9.250%, 06/15/15 110 72
Newport Television (A)
13.000%, 03/15/17 114 91
Nexstar Finance Holdings (D)
11.375%, 04/01/13 128 114
Univision Communications (A)
12.000%, 07/01/14 81 89
-----------
TOTAL BROADCASTING & CABLE 1,412
===========
BUILDING & CONSTRUCTION [0.1%]
Esco (A)
8.625%, 12/15/13 50 50
International Utility
Structures (C) (F)
10.750%, 02/01/08 100 1
-----------
TOTAL BUILDING & CONSTRUCTION 51
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 24
schedule of investments
MARCH 31, 2010 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
CHEMICALS [1.6%]
CPG International I
10.500%, 07/01/13 $ 285 $ 285
Innophos
8.875%, 08/15/14 100 103
Momentive Performance Materials
9.750%, 12/01/14 100 100
Polymer Holdings (D) (E) (F)
18.929%, 07/15/14 250 253
-----------
TOTAL CHEMICALS 741
===========
COAL MINING [0.9%]
Consol Energy (A)
8.250%, 04/01/20 400 411
===========
COMMERCIAL SERVICES [1.2%]
ARAMARK
8.500%, 02/01/15 150 154
DI Finance
9.500%, 02/15/13 150 152
Iron Mountain
8.750%, 07/15/18 150 157
Tube City IMS
9.750%, 02/01/15 100 98
-----------
TOTAL COMMERCIAL SERVICES 561
===========
COMPUTER SYSTEM DESIGN & SERVICES [1.2%]
Activant Solutions
9.500%, 05/01/16 100 96
Compucom Systems (A)
12.500%, 10/01/15 240 254
Terremark Worldwide (A)
12.000%, 06/15/17 200 230
-----------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 580
===========
CONGLOMERATE [0.2%]
KAR Auction Services
8.750%, 05/01/14 100 102
===========
CONSUMER PRODUCTS & SERVICES [2.4%]
Central Garden & Pet
9.125%, 02/01/13 100 102
Jarden
7.500%, 05/01/17 75 76
MSX International (A)
12.500%, 04/01/12 100 78
Prestige Brands (A)
8.250%, 04/01/18 280 287
Sealy Mattress
8.250%, 06/15/14 200 200
Southern States Cooperative (A)
11.000%, 11/01/11 250 250
Steinway Musical Instruments (A)
7.000%, 03/01/14 100 96
Yankee Acquisition, Ser B
9.750%, 02/15/17 50 52
-----------
TOTAL CONSUMER PRODUCTS & SERVICES 1,141
===========
CONTAINERS & PACKAGING [0.8%]
Exopack Holding
11.250%, 02/01/14 100 104
Intertape Polymer US (F)
8.500%, 08/01/14 100 85
Solo Cup
8.500%, 02/15/14 200 196
-----------
TOTAL CONTAINERS & PACKAGING 385
===========
DATA PROCESSING/MGMT [0.7%]
First Data
9.875%, 09/24/15 400 345
===========
DISTRIBUTION/WHOLESALE [2.2%]
Intcomex (A)
13.250%, 12/15/14 600 607
VWR Funding
10.250%, 07/15/15 423 448
-----------
TOTAL DISTRIBUTION/WHOLESALE 1,055
===========
DIVERSIFIED OPERATIONS [1.0%]
Amsted Industries (A)
8.125%, 03/15/18 450 450
===========
ELECTRIC UTILITIES [4.0%]
AES
8.000%, 10/15/17 100 102
8.000%, 06/01/20 50 50
CMS Energy
8.750%, 06/15/19 50 56
6.875%, 12/15/15 150 160
Edison Mission Energy
7.200%, 05/15/19 150 104
7.000%, 05/15/17 350 244
Energy Future Holdings
10.875%, 11/01/17 250 186
ESI Tractebel Acquisition, Ser B
7.990%, 12/30/11 35 35
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 25
schedule of investments
MARCH 31, 2010 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Mirant North America
7.375%, 12/31/13 $ 150 $ 150
NRG Energy
7.375%, 02/01/16 100 99
PNM Resources
9.250%, 05/15/15 100 106
RRI Energy
7.625%, 06/15/14 200 187
United Maritime Group (A)
11.750%, 06/15/15 400 410
-----------
TOTAL ELECTRIC UTILITIES 1,889
===========
ENTERPRISE SOFTWARE/SERV [0.8%]
JDA Software Group (A)
8.000%, 12/15/14 375 390
===========
ENTERTAINMENT & GAMING [9.8%]
AMC Entertainment
11.000%, 02/01/16 100 107
CCM Merger (A)
8.000%, 08/01/13 175 152
Choctaw Resort Development
Enterprise (A)
7.250%, 11/15/19 182 124
Chukchansi Economic
Development Authority (A)
8.000%, 11/15/13 250 205
4.024%, 11/15/12 (B) 200 156
Circus & Eldorado Joint
Venture/Silver Legacy Capital
10.125%, 03/01/12 150 130
Harrah's Operating
11.250%, 06/01/17 250 269
10.750%, 02/01/16 250 208
Indianapolis Downs & Capital (A)
11.000%, 11/01/12 100 66
Inn of the Mountain Gods
Resort & Casino (C)
12.000%, 11/15/10 150 72
Isle of Capri Casinos
7.000%, 03/01/14 557 476
Jacobs Entertainment
9.750%, 06/15/14 75 70
Mashantucket Western Pequot
Tribe (A) (C)
8.500%, 11/15/15 170 43
MGM Mirage
11.375%, 03/01/18 (A) 250 241
6.750%, 09/01/12 100 95
Mohegan Tribal Gaming Authority
7.125%, 08/15/14 100 78
Penn National Gaming (A)
8.750%, 08/15/19 250 254
River Rock Entertainment Authority
9.750%, 11/01/11 600 554
San Pasqual Casino (A)
8.000%, 09/15/13 100 95
Scientific Games
6.250%, 12/15/12 100 99
Seneca Gaming
7.250%, 05/01/12 200 198
Shingle Springs Tribal Gaming
Authority (A)
9.375%, 06/15/15 100 83
Snoqualmie Entertainment Authority (A)
9.125%, 02/01/15 200 154
4.136%, 02/01/14 (B) 200 146
Speedway Motorsports
6.750%, 06/01/13 100 100
Tunica-Biloxi Gaming Authority (A)
9.000%, 11/15/15 125 119
Vail Resorts
6.750%, 02/15/14 100 100
Waterford Gaming (A)
8.625%, 09/15/14 73 50
Wynn Las Vegas Capital
6.625%, 12/01/14 175 175
-----------
TOTAL ENTERTAINMENT & GAMING 4,619
===========
FINANCIAL SERVICES [3.3%]
GMAC
6.750%, 12/01/14 425 422
Icahn Enterprises (A)
7.750%, 01/15/16 250 241
International Lease Finance
8.625%, 09/15/15 (A) 290 296
6.375%, 03/25/13 235 230
International Lease Finance, MTN
5.650%, 06/01/14 115 107
Pinnacle Foods Finance (A)
9.250%, 04/01/15 250 256
-----------
TOTAL FINANCIAL SERVICES 1,552
===========
FOOD, BEVERAGE & TOBACCO [0.7%]
B&G Foods
7.625%, 01/15/18 200 203
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 26
schedule of investments
MARCH 31, 2010 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Beverages & More (A)
9.250%, 03/01/12 $ 100 $ 100
Leiner Health Products (C)
11.000%, 06/01/12 100 9
Le-Nature's (A) (C) (F)
0.000%, 06/15/13 150 22
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 334
===========
GAS/NATURAL GAS [0.3%]
El Paso
7.000%, 06/15/17 150 153
===========
INSURANCE [4.0%]
Delphi Financial Group
7.875%, 01/31/20 300 310
National Life Insurance (A)
10.500%, 09/15/39 150 160
Protective Life
8.450%, 10/15/39 225 236
Torchmark
9.250%, 06/15/19 550 659
USI Holdings (A)
9.750%, 05/15/15 407 385
4.125%, 11/15/14 (B) 125 106
-----------
TOTAL INSURANCE 1,856
===========
INVESTMENT BANKER/BROKER DEALER [1.5%]
Nuveen Investments (F)
10.500%, 11/15/15 700 679
===========
INVESTMENT COMPANIES [1.7%]
Allied Capital
6.625%, 07/15/11 (F) 715 701
6.000%, 04/01/12 100 96
===========
TOTAL INVESTMENT COMPANIES 797
===========
MACHINERY [2.1%]
Baldor Electric
8.625%, 02/15/17 125 132
Case New Holland
7.125%, 03/01/14 100 101
CPM Holdings (A)
10.625%, 09/01/14 130 139
Douglas Dynamics (A)
7.750%, 01/15/12 440 444
Terex
8.000%, 11/15/17 75 73
7.375%, 01/15/14 100 102
-----------
TOTAL MACHINERY 991
===========
MEDICAL PRODUCTS & SERVICES [2.2%]
Apria Healthcare Group (A)
12.375%, 11/01/14 200 219
Bio-Rad Laboratories
7.500%, 08/15/13 100 102
Community Health Systems
8.875%, 07/15/15 150 155
HCA
9.250%, 11/15/16 50 53
5.750%, 03/15/14 100 95
Omnicare
6.750%, 12/15/13 150 151
Talecris Biotherapeutics
Holdings (A)
7.750%, 11/15/16 250 251
-----------
TOTAL MEDICAL PRODUCTS & SERVICES 1,026
===========
METALS & MINING [0.6%]
Noranda Aluminium Acquisition (B)
4.524%, 05/15/15 160 127
Novelis
7.250%, 02/15/15 150 145
-----------
TOTAL METALS & MINING 272
===========
MISCELLANEOUS BUSINESS SERVICES [1.9%]
Affinion Group
11.500%, 10/15/15 100 102
10.125%, 10/15/13 400 410
Carriage Services
7.875%, 01/15/15 200 193
Lamar Media
6.625%, 08/15/15 100 96
MCBC Holdings (A)
6.970%, 10/15/14 50 9
Stewart Enterprises
6.250%, 02/15/13 100 99
-----------
TOTAL MISCELLANEOUS BUSINESS SERVICES 909
===========
MISCELLANEOUS MANUFACTURING [2.5%]
AGY Holding
11.000%, 11/15/14 100 86
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 27
schedule of investments
MARCH 31, 2010 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Buffalo Thunder Development
Authority (A) (C)
9.375%, 12/15/14 $ 75 $ 10
CEVA Group (A)
11.625%, 10/01/16 250 267
11.500%, 04/01/18 100 104
General Cable
7.125%, 04/01/17 100 99
LBI Escrow (A)
8.000%, 11/01/17 565 586
-----------
TOTAL MISCELLANEOUS MANUFACTURING 1,152
===========
MOTION PICTURES AND SERVICES [0.9%]
Lions Gate Entertainment (A)
10.250%, 11/01/16 400 409
===========
MULTI-LINE INSURANCE [0.4%]
Unitrin
6.000%, 05/15/17 195 188
===========
OIL-FIELD SERVICES [0.9%]
Aquilex Holdings (A)
11.125%, 12/15/16 400 430
===========
PAPER & RELATED PRODUCTS [0.7%]
Appleton Papers (A)
11.250%, 12/15/15 62 57
Domtar
7.125%, 08/15/15 150 156
Verso Paper Holdings
9.125%, 08/01/14 100 97
-----------
TOTAL PAPER & RELATED PRODUCTS 310
===========
PETROLEUM & FUEL PRODUCTS [7.6%]
Atlas Energy Operating
12.125%, 08/01/17 200 229
Atlas Pipeline Partners
8.125%, 12/15/15 200 193
Bill Barrett
9.875%, 07/15/16 250 269
Chesapeake Energy
6.875%, 01/15/16 100 99
6.250%, 01/15/18 100 95
Clayton Williams Energy
7.750%, 08/01/13 150 146
Continental Resources (A)
7.375%, 10/01/20 500 496
Copano Energy
7.750%, 06/01/18 100 100
Denbury Resources
8.250%, 02/15/20 350 371
Dynegy Holdings
8.375%, 05/01/16 100 83
7.750%, 06/01/19 100 75
Helix Energy Solutions Group (A)
9.500%, 01/15/16 100 103
Linn Energy
9.875%, 07/01/18 100 107
MarkWest Energy Partners, Ser B
8.500%, 07/15/16 150 152
Newfield Exploration
6.625%, 09/01/14 150 154
Petroplus Finance (A)
7.000%, 05/01/17 150 129
Plains Exploration & Production
7.750%, 06/15/15 150 152
7.625%, 06/01/18 100 101
SandRidge Energy (A)
8.750%, 01/15/20 150 146
Southern Star Central
6.750%, 03/01/16 100 101
Southwestern Energy
7.500%, 02/01/18 100 109
Stone Energy
8.625%, 02/01/17 140 138
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 3,548
===========
PHARMACY SERVICES [1.1%]
BioScrip (A)
10.250%, 10/01/15 500 509
===========
PHOTO EQUIPMENT AND SUPPLIES [1.2%]
Eastman Kodak
9.750%, 03/01/18 (A) 100 99
7.250%, 11/15/13 500 476
-----------
TOTAL PHOTO EQUIPMENT AND SUPPLIES 575
===========
PRINTING & PUBLISHING [1.0%]
MediMedia USA (A)
11.375%, 11/15/14 50 42
Nielsen Finance (D)
12.500%, 08/01/11 300 285
Sheridan Group
10.250%, 08/15/11 150 149
-----------
TOTAL PRINTING & PUBLISHING 476
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 28
schedule of investments
MARCH 31, 2010 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
RADIO [0.8%]
Cleveland Unlimited (A) (B)
13.000%, 12/15/10 $ 250 $ 241
XM Satellite Radio Holdings (A)
13.000%, 08/01/13 100 113
-----------
TOTAL RADIO 354
===========
REAL ESTATE INVESTMENT TRUSTS [0.6%]
DuPont Fabros Technology (A)
8.500%, 12/15/17 150 155
Ventas Realty
6.500%, 06/01/16 100 102
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS 257
===========
RESEARCH AND DEVELOPMENT [2.1%]
Alion Science and Technology (A)
12.000%, 11/01/14 280 284
Catalent Pharma Solutions
9.500%, 04/15/15 471 462
PharmaNet Development Group (A)
10.875%, 04/15/17 245 245
-----------
TOTAL RESEARCH AND DEVELOPMENT 991
===========
RETAIL [3.4%]
ACE Hardware (A) (F)
9.125%, 06/01/16 100 107
Brunswick (A)
11.250%, 11/01/16 245 279
Claire's Stores
9.625%, 06/01/15 116 99
Dave & Buster's
11.250%, 03/15/14 150 158
Ferrellgas Partners
6.750%, 05/01/14 100 99
Inergy
8.250%, 03/01/16 200 206
Landry's Restaurants (A)
11.625%, 12/01/15 126 135
Leslie's Poolmart
7.750%, 02/01/13 175 177
Penske Auto Group
7.750%, 12/15/16 100 96
Rare Restaurant Group (A)
9.250%, 05/15/14 100 70
Sbarro
10.375%, 02/01/15 50 42
Sonic Automotive
9.000%, 03/15/18 (A) 70 72
8.625%, 08/15/13 70 72
True Temper Sports (C)
8.375%, 09/15/11 150 --
-----------
TOTAL RETAIL 1,612
===========
RUBBER & PLASTIC [0.4%]
Cooper Tire & Rubber
8.000%, 12/15/19 100 98
Goodyear Tire & Rubber
9.000%, 07/01/15 98 101
-----------
TOTAL RUBBER & PLASTIC 199
===========
SEMI-CONDUCTORS [0.4%]
Amkor Technology
9.250%, 06/01/16 100 106
Sensata Technologies
8.000%, 05/01/14 100 103
-----------
TOTAL SEMI-CONDUCTORS 209
===========
STEEL & STEEL WORKS [0.2%]
Ryerson
12.000%, 11/01/15 75 79
===========
TELEPHONES & TELECOMMUNICATIONS [6.0%]
Broadview Networks Holdings
11.375%, 09/01/12 100 97
Citizens Communications
7.125%, 03/15/19 150 143
Clearwire Communications (A)
12.000%, 12/01/15 500 509
Cricket Communications
9.375%, 11/01/14 250 254
Level 3 Financing (A)
10.000%, 02/01/18 250 239
MetroPCS Wireless
9.250%, 11/01/14 350 358
Nextel Communications
6.875%, 10/31/13 200 195
Radio One
8.875%, 07/01/11 100 91
Telcordia Technologies (A)
10.000%, 03/15/13 250 244
4.001%, 07/15/12 (B) 150 145
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 29
schedule of investments
MARCH 31, 2010 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Virgin Media Finance
9.125%, 08/15/16 $ 150 $ 159
West
11.000%, 10/15/16 250 265
9.500%, 10/15/14 100 103
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,802
===========
TRANSACTIONAL SOFTWARE [1.1%]
Open Solutions (A)
9.750%, 02/01/15 600 517
===========
TRANSPORTATION SERVICES [3.2%]
Kansas City Southern Railway
8.000%, 06/01/15 100 104
Navios Maritime Holdings
9.500%, 12/15/14 100 101
Pegasus Solutions (A)
10.500%, 04/15/15 100 41
Royal Caribbean Cruises
6.875%, 12/01/13 100 101
Sabre Holdings
8.350%, 03/15/16 200 190
Ship Finance International
8.500%, 12/15/13 200 198
Stena
7.000%, 12/01/16 150 144
Swift Transportation (A) (B)
8.000%, 05/15/15 200 181
Travelport
11.875%, 09/01/16 150 164
9.875%, 09/01/14 250 261
-----------
TOTAL TRANSPORTATION SERVICES 1,485
===========
WASTE DISPOSAL [0.2%]
WCA Waste
9.250%, 06/15/14 100 101
===========
TOTAL CORPORATE BONDS
(Cost $43,382) 43,576
===========
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000)
- ----------- ------------------------ -----------
COMMON STOCK [0.1%]
BROADCASTING & CABLE [0.0%]
Olympus (E) (F)* 8,500 $ 10
===========
BUILDING & CONSTRUCTION [0.0%]
Dayton Superior* 149 --
===========
IT SERVICES [0.1%]
Unisys* 544 19
===========
TOTAL COMMON STOCK
(Cost $24) 29
===========
CONVERTIBLE BOND [0.1%]
FOOD, BEVERAGE & TOBACCO [0.1%]
Vector Group (B)
0.000%, 06/15/26 $ 60 64
===========
TOTAL CONVERTIBLE BOND
(Cost $62) 64
===========
CASH EQUIVALENTS [11.5%]
Evergreen Select Money
Market Fund, Institutional
Class, 0.010%** 2,705,543 2,705
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I, 0.140%** 2,705,543 2,706
===========
TOTAL CASH EQUIVALENTS
(Cost $5,411) 5,411
===========
TOTAL INVESTMENTS [104.5%]
(Cost $48,879) $ 49,080
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 30
schedule of investments
MARCH 31, 2010 (UNAUDITED)
HIGH YIELD BOND FUND (CONCLUDED)
PERCENTAGES ARE BASED ON NET ASSETS OF $46,968 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY.
** 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 $18,609(000), REPRESENTING 39.6% OF
THE NET ASSETS OF THE FUND.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH
31, 2010.
(C) IN DEFAULT ON INTEREST PAYMENTS. RATE SHOWN REPRESENTS THE LAST COUPON RATE
PRIOR TO DEFAULT.
(D) STEP BOND -- THE RATE REPORTED IS THE RATE IN EFFECT ON MARCH 31, 2010. THE
COUPON ON A STEP BOND CHANGES ON A SPECIFIC DATE.
(E) SECURITY IS FAIR VALUED.
(F) SECURITY IS CONSIDERED ILLIQUID.
CL -- CLASS
MTN -- MEDIUM TERM NOTE
SER -- SERIES
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
------- ------- ------- -------
Investments in Securities
Corporate Bonds $ -- $43,322 $ 254 $43,576
Common Stock 19 -- 10 29
Convertible Bond -- 64 -- 64
Cash Equivalents 5,411 -- -- 5,411
------- ------- ------- -------
Total Investments in Securities $ 5,430 $43,386 $ 264 $49,080
======= ======= ======= =======
The following is a reconciliation of investments in which significant
unobservable inputs (Level 3) were used in determining value:
Investments Investments
in Corporate in Common
Bonds Stock
($ Thousands) ($ Thousands)
------------- -------------
Beginning balance as of October 1, 2009 $ 184 $ 9
Accrued discounts/premiums -- --
Realized gain/(loss) -- --
Change in unrealized appreciation/(depreciation) 69 1
Net purchases/sales -- --
Net transfer in and/or out of Level 3 1 --
------------- -------------
Ending balance as of March 31, 2010 $ 254 $ 10
============= =============
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 31
schedule of investments
MARCH 31, 2010 (UNAUDITED)
PRIME MONEY MARKET FUND
TYPE OF SECURITY WEIGHTINGS*:
[BAR GRAPH]
Commercial Paper 55.6%
Certificates of Deposit 24.0%
Short-Term Investments 14.1%
U.S. Government Agency Obligations 6.3%
* Percentages are based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
COMMERCIAL PAPER (A) [55.6%]
AIRPORT DEVELOPMENT/MAINTENANCE [1.9%]
Los Angeles Department of Airports
0.250%, 06/08/10 $ 25,000 $ 24,988
===========
BANKS [22.2%]
Abbey National North America
0.200%, 06/08/10 25,000 24,991
Australia & New Zealand Banking Group (B)
0.230%, 06/07/10 25,000 24,989
Bank of Nova Scotia
0.160%, 04/01/10 25,000 25,000
BNZ International Funding (B)
0.195%, 05/18/10 25,000 24,994
KBC Financial Products International (B)
0.210%, 04/01/10 25,000 25,000
Landesbank Baden-Wuerttemberg
0.250%, 04/12/10 25,000 24,998
Lloyds TSB Bank
0.195%, 04/07/10 25,000 24,999
Natixis US Finance
0.255%, 06/07/10 25,000 24,988
Royal Bank of Scotland
0.220%, 04/26/10 25,000 24,996
Skandinaviska Enskilda Banken (B)
0.300%, 04/19/10 25,000 24,996
Societe Generale North America
0.240%, 04/07/10 25,000 24,999
Standard Chartered Bank (B)
0.451%, 06/11/10 25,000 24,978
-----------
TOTAL BANKS 299,928
===========
EDUCATION [1.9%]
University of California
0.180%, 05/18/10 25,000 24,994
===========
FINANCIAL SERVICES [12.6%]
ASB Finance (B)
0.200%, 05/19/10 25,000 24,993
Commerzbank US Finance
0.230%, 04/14/10 25,000 24,998
Danske (B)
0.180%, 04/26/10 20,000 19,997
General Electric Capital
0.220%, 04/14/10 25,000 24,998
HSBC Finance
0.200%, 05/10/10 25,000 24,995
Toyota Financial Services de
Puerto Rico
0.300%, 04/23/10 25,000 24,996
Westpac Securities NZ (B)
0.250%, 05/21/10 25,000 24,991
-----------
TOTAL FINANCIAL SERVICES 169,968
===========
FOREIGN GOVERNMENTS [1.8%]
Republic of Ireland International Bond
0.521%, 06/03/10 25,000 24,977
===========
IMPORT/EXPORT [1.5%]
Sumitomo Corp of America
0.210%, 05/07/10 20,000 19,996
===========
INSURANCE [1.8%]
MetLife Short Term Funding (B)
0.190%, 04/01/10 25,000 25,000
-----------
INVESTMENT BANKER/BROKER DEALER [5.5%]
AllianceBernstein (B)
0.120%, 04/01/10 25,000 25,000
Citigroup Funding
0.220%, 04/01/10 25,000 25,000
ING US Funding
0.270%, 06/04/10 25,000 24,988
-----------
TOTAL INVESTMENT BANKER/BROKER DEALER 74,988
===========
MISCELLANEOUS MANUFACTURING [6.4%]
Barton Capital (B)
0.180%, 04/07/10 12,014 12,014
Chariot Funding (B)
0.170%, 04/06/10 25,000 24,999
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 32
schedule of investments
MARCH 31, 2010 (UNAUDITED)
PRIME MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Galleon Capital (B)
0.195%, 04/12/10 $ 25,000 $ 24,999
Gotham Funding (B)
0.200%, 04/15/10 25,000 24,998
-----------
TOTAL MISCELLANEOUS MANUFACTURING 87,010
===========
TOTAL COMMERCIAL PAPER
(Cost $751,849) 751,849
===========
U.S. GOVERNMENT AGENCY OBLIGATIONS [6.3%]
FHLB
0.550%, 06/04/10 10,000 10,000
0.420%, 10/15/10 25,000 24,996
0.480%, 10/25/10 25,000 25,018
0.400%, 12/28/10 25,000 25,000
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $85,014) 85,014
===========
CERTIFICATES OF DEPOSIT [24.0%]
Banco Bilbao Vizcaya Argentaria
0.255%, 06/21/10 25,000 25,001
Banco Del Estado De Chile
0.560%, 07/08/10 25,000 25,000
Bank of America
0.230%, 06/14/10 25,000 25,000
Bank of Montreal
0.170%, 04/26/10 25,000 25,000
Barclays Bank
0.760%, 08/06/10 25,000 25,000
Bayerische Landesbank
0.400%, 04/29/10 25,000 25,000
BNP Paribas NY
0.180%, 05/04/10 25,000 25,000
Dexia Credit Local NY
0.270%, 04/09/10 25,000 25,000
Erste Group Bank
0.250%, 04/05/10 25,000 25,000
Landesbank Hessen-Theuringen
0.355%, 05/17/10 25,000 25,000
National Bank of Canada
0.200%, 05/10/10 25,000 25,000
Norinchukin Bank
0.250%, 05/03/10 25,000 25,000
Rabobank Nederland
0.270%, 08/03/10 25,000 25,000
-----------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $325,001) 325,001
===========
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000)
- ----------- ------------------------ -----------
CASH EQUIVALENT [0.2%]
Goldman Sachs Financial
Square Funds - Government Fund, 0.030%* 2,570,238 $ 2,570
-----------
TOTAL CASH EQUIVALENT
(Cost $2,570) 2,570
===========
REPURCHASE AGREEMENTS (C) [13.9%]
Bank of America
0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase
price $75,000,021 (collateralized by U.S. Government obligations,
ranging in par value $15,679,000-$58,910,000, 0.700%-4.750%, 04/18/11-
11/17/15; with total market value $76,500,766) $ 75,000 75,000
Barclays
0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $38,700,011
(collateralized by U.S. Government obligations, ranging in par value
$1,587,600-$37,413,700, 0.000%-1.750%, 02/10/11-
08/15/12; with total market value $39,474,011) 38,700 38,700
Deutsche Bank
0.020%, dated 03/31/10, repurchased on 04/01/10, repurchase price $75,000,042
(collateralized by a U.S. Government obligation, par value $76,543,000, 0.000%,
09/19/11; with total market value $76,500,136) 75,000 75,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $188,700) 188,700
===========
TOTAL INVESTMENTS [100.0%]
(Cost $1,353,134) $ 1,353,134
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 33
schedule of investments
MARCH 31, 2010 (UNAUDITED)
PRIME MONEY MARKET FUND (CONCLUDED)
PERCENTAGES ARE BASED ON NET ASSETS OF $1,353,210 ($ THOUSANDS).
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010.
(A) THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF PURCHASE.
(B) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933.THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONS. ON MARCH 31, 2010, THE
VALUE OF THESE SECURITIES AMOUNTED TO $331,948(000), REPRESENTING 24.5% OF
THE NET ASSETS OF THE FUND.
(C) TRI-PARTY REPURCHASE AGREEMENT
FHLB -- FEDERAL HOME LOAN BANK
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
------- ---------- ------- ----------
Investments in Securities
Commercial Paper $ -- $ 751,849 $ -- $ 751,849
U.S. Government Agency Obligations -- 85,014 -- 85,014
Certificates of Deposit -- 325,001 -- 325,001
Cash Equivalent 2,570 -- -- 2,570
Repurchase Agreements -- 188,700 -- 188,700
------- ---------- ------- ----------
Total Investments in Securities $ 2,570 $1,350,564 $ -- $1,353,134
======= ========== ======= ==========
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 34
schedule of investments
MARCH 31, 2010 (UNAUDITED)
GOVERNMENT MONEY MARKET FUND
TYPE OF SECURITY WEIGHTINGS*:
[BAR GRAPH]
U.S. Government Agency Obligations 73.3%
Repurchase Agreements 17.9%
U.S. Treasury Obligations 8.8%
* Percentages are based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------------------------------- ----------------- -----------
U.S. GOVERNMENT AGENCY OBLIGATIONS [73.3%]
FARMER MAC DN (A)
0.010%, 04/01/10 $ 22,000 $ 22,000
FFCB (B)
0.579%, 12/09/10 50,000 50,103
0.155%, 12/14/11 50,000 50,000
FHLB
0.875%, 04/15/10 25,000 25,000
0.500%, 05/26/10 25,000 24,997
0.550%, 06/04/10 20,000 20,000
0.380%, 06/15/10 40,700 40,700
0.560%, 06/22/10 25,000 24,999
4.500%, 06/22/10 25,000 25,238
0.014%, 07/06/10 (B) 50,000 50,000
0.600%, 07/26/10 10,950 10,950
0.550%, 07/30/10 20,000 20,000
0.420%, 10/15/10 25,000 24,997
0.480%, 10/25/10 25,000 25,018
0.500%, 10/28/10 19,250 19,250
0.400%, 12/28/10 25,000 25,000
FHLB DN (A)
0.040%, 04/01/10 50,000 50,000
0.040%, 04/06/10 143,000 142,999
0.110%, 04/07/10 75,000 74,999
0.087%, 04/09/10 150,000 149,997
0.132%, 04/16/10 60,220 60,217
0.120%, 04/21/10 100,000 99,993
0.121%, 04/23/10 105,000 104,992
0.137%, 04/28/10 75,000 74,992
0.135%, 04/30/10 50,000 49,995
0.150%, 05/05/10 50,000 49,993
0.150%, 05/07/10 99,086 99,071
0.150%, 05/12/10 50,000 49,991
0.170%, 06/02/10 50,000 49,985
FHLMC
4.125%, 02/24/11 24,299 25,110
FHLMC DN (A)
0.187%, 05/04/10 50,000 49,991
0.180%, 05/24/10 50,000 49,987
0.200%, 06/07/10 30,000 29,989
0.180%, 07/19/10 30,000 29,984
FNMA
7.125%, 06/15/10 24,866 25,208
FNMA DN (A)
0.122%, 05/03/10 25,000 24,997
0.140%, 05/05/10 50,000 49,993
0.135%, 05/19/10 30,000 29,995
0.156%, 05/26/10 50,000 49,988
0.187%, 06/02/10 35,000 34,989
0.184%, 06/09/10 75,000 74,974
0.200%, 07/06/10 50,000 49,973
0.230%, 08/09/10 25,000 24,979
0.381%, 09/01/10 25,000 24,960
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,090,593) 2,090,593
===========
U.S. TREASURY OBLIGATION [8.8%]
U.S. Treasury Bill
0.028%, 04/08/10 250,000 249,999
-----------
TOTAL U.S. TREASURY OBLIGATION
(Cost $249,999) 249,999
===========
REPURCHASE AGREEMENTS (C) [17.9%]
Bank of America
0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $200,000,056
(collateralized by U.S. Government obligations, ranging in par value
$52,325,000-$69,300,000, 0.000%-5.700%, 06/25/10-11/19/24; with total
market value $204,000,491) 200,000 200,000
Barclays
0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $36,300,010
(collateralized by U.S. Treasury obligations, ranging in par value
$12,678,300-$19,195,700, 1.750%-6.625%, 08/15/12-02/15/27; with total
market value $37,026,028) 36,300 36,300
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 35
schedule of investments
MARCH 31, 2010 (UNAUDITED)
GOVERNMENT MONEY MARKET FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------------------------------- ----------------- -----------
Deutsche Bank
0.020%, dated 03/31/10, repurchased on 04/01/10, repurchase price $75,000,042
(collateralized by a U.S. Government obligation, par value $76,543,000, 0.000%,
09/19/11; with total market value $78,500,136) $ 75,000 $ 75,000
JPMorgan Chase
0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $200,003,223
(collateralized by U.S. Government obligations, ranging in par value
$50,000-$103,700,200, 0.000%-9.375%, 04/01/10-01/15/30; with total market value
$204,003,290) 200,000 200,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $511,300) 511,300
===========
TOTAL INVESTMENTS [100.0%]
(Cost $2,851,892) $ 2,851,892
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $2,853,159 ($ THOUSANDS).
(A) ZERO COUPON SECURITY -- THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME
OF PURCHASE.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON
MARCH 31, 2010.
(C) TRI-PARTY REPURCHASE AGREEMENT
DN -- DISCOUNT NOTE
FARMER MAC -- FEDERAL AGRICULTURAL MORTGAGE CORPORATION
FFCB -- FEDERAL FARM CREDIT BANK
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
------- ----------- ------- -----------
Investments in Securities
U.S. Government Agency Obligations $ -- $ 2,090,593 $ -- $ 2,090,593
U.S.Treasury Obligation -- 249,999 -- 249,999
Repurchase Agreements -- 511,300 -- 511,300
------- ----------- ------- -----------
Total Investments in Securities $ -- $ 2,851,892 $ -- $ 2,851,892
======= =========== ======= ===========
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 36
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
ISSUER INDUSTRY WEIGHTINGS*:
[BAR GRAPH]
General Revenue 35.9%
Water 21.3%
General Obligation 12.1%
Education 10.4%
Power 5.1%
Healthcare 3.8%
Public Facilities 3.2%
Transportation 2.9%
Utilities 2.2%
Commercial Paper 1.4%
Industrial Development 1.2%
Airports 0.5%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------------------------------- ----------------- -----------
MUNICIPAL BONDS [96.8%]
CALIFORNIA [91.0%]
ABAG, Finance Authority for Non-Profit Corporations, Public Policy Institute,
Ser A, RB (A) (B) (C)
0.290%, 11/01/31 $ 2,870 $ 2,870
Bay Area Toll Authority, RB (B) (C)
0.290%, 04/01/45 13,000 13,000
Bay Area Toll Authority, RB (B) (C)
0.240%, 04/01/38 1,000 1,000
Bay Area Toll Authority, RB (B) (C)
0.270%, 04/01/45 5,500 5,500
Bay Area Toll Authority, Ser E-1, RB (B) (C)
0.280%, 04/01/45 3,560 3,560
Bay Area Toll Authority, Ser E-3, RB (B) (C)
0.280%, 04/01/47 4,000 4,000
California State, Department of Water Resource & Power, Ser B-2, RB (A) (B) (C)
0.290%, 05/01/22 5,000 5,000
California State, Department of Water Resource & Power, Ser C-15, RB (A) (B) (C)
0.240%, 05/01/22 5,000 5,000
California State, Department of Water Resource & Power, Ser C-7, RB,AGM (B) (C)
0.320%, 05/01/22 11,925 11,925
California State, Department of Water Resource & Power, Sub-Ser F-2, RB (A) (B) (C)
0.280%, 05/01/20 16,000 16,000
California State, Department of Water Resource & Power, Sub-Ser G-3, RB,AGM (B) (C)
0.320%, 05/01/16 10,820 10,820
California State, Economic Development Financing Authority, KQED Incorporated
Project, RB (A) (B) (C)
0.430%, 04/01/20 1,140 1,140
California State, Economic Recovery Authority, Ser C-16, GO,AGM (B) (C)
0.300%, 07/01/23 2,955 2,955
California State, Educational Facilities Authority, Stanford University Project, Ser
L-4, RB (B) (C)
0.280%, 10/01/16 515 515
California State, Health Facilities Financing Authority, Luvile Salter Project, Ser
B, RB (B) (C)
0.260%, 08/15/33 11,700 11,700
California State, Health Facilities Financing Authority, Ser B, RB (A) (B) (C)
0.260%, 10/01/31 10,000 10,000
California State, Infrastructure & Economic Authority, California Academy Project,
Ser A, RB (A) (B) (C)
0.270%, 09/01/38 5,000 5,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 37
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------------------------------- ----------------- -----------
California State, Infrastructure & Economic Authority, J Paul Getty Trust
Project, Ser A-2, RB (B) (C)
0.500%, 10/01/47 $ 4,000 $ 4,000
California State, Infrastructure & Economic Authority, J Paul Getty Trust
Project, Ser B, RB (B) (C)
0.270%, 10/01/23 7,415 7,415
California State, Infrastructure & Economic Authority, J Paul Getty Trust
Project, Ser D, RB (B) (C)
0.270%, 04/01/33 3,700 3,700
California State, Ser B, Sub-Ser B-7, GO (A) (B) (C)
0.340%, 05/01/40 14,275 14,275
California State, Sub-Ser B-3, GO (A) (B) (C)
0.220%, 05/01/40 3,145 3,145
California State, Sub-Ser B-4, GO (A) (B) (C)
0.280%, 05/01/40 6,880 6,880
California Statewide, Communities Development Authority, Masters College Project,
RB (A) (B) (C)
0.240%, 02/01/37 3,000 3,000
California Statewide, Communities Development Authority, Ser A, RB (A) (B) (C)
0.260%, 12/01/37 20,000 20,000
Contra Costa, Transportation Authority, RB
2.500%, 10/01/10 4,200 4,242
East Bay, Municipal Utilities District Water Authority, Sub-Ser A-1, RB (B) (C)
0.280%, 06/01/38 10,000 10,000
East Bay, Municipal Utilities District Water Authority, Sub-Ser A-2, RB (B) (C)
0.280%, 06/01/38 4,890 4,890
East Bay, Municipal Utilities District Water Authority, Sub-Ser A-3, RB (B) (C)
0.280%, 06/01/38 11,300 11,300
East Bay, Municipal Utility District, Sub-Ser A, RB (B) (C)
0.230%, 06/01/33 25,000 25,000
Eastern Municipal Water District, Ser B, COP (B) (C)
0.250%, 07/01/35 10,600 10,600
Glendale, Police Building Project, COP (B) (C)
0.290%, 06/01/30 18,300 18,300
Irvine, Improvement Board, Act 1915 Project, District #03-19, Ser A, SAB (A) (B) (C)
0.270%, 09/02/29 6,536 6,536
Irvine, Improvement Board, Act 1915 Project, District #04-20, Ser A, SAB (A) (B) (C)
0.270%, 09/02/30 8,560 8,560
Irvine, Improvement Board, Act 1915 Project, District #04-20, Ser B, RB (A) (B) (C)
0.270%, 09/02/30 15,843 15,843
Irvine, Improvement Board, Act 1915 Project, District #05-21, Ser A, SAB (A) (B) (C)
0.290%, 09/02/31 14,430 14,430
Irvine, Improvement Board, Act 1915 Project, District #07-22, Ser A, RB (A) (B) (C)
0.270%, 09/02/32 13,950 13,950
Irvine, Improvement Board, Act 1915 Project, District #97-17, SAB (A) (B) (C)
0.270%, 09/02/23 7,150 7,150
Los Angeles County, Metropolitan Transportation Authority, RB (B) (C)
0.330%, 07/01/31 5,000 5,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 38
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------------------------------- ----------------- -----------
Los Angeles County, Metropolitan Transportation Authority, Ser A1, RB (B) (C)
0.270%, 07/01/31 $ 27,745 $ 27,745
Los Angeles County, Metropolitan Transportation Authority, Ser C4, RB, (A) (B) (C)
0.290%, 07/01/25 2,000 2,000
Los Angeles County, Ser A,TRAN
2.500%, 06/30/10 7,000 7,028
Los Angeles County, Ser A,TRAN
2.500%, 06/30/10 7,000 7,029
Los Angeles, Department of Water & Power, Sub-Ser B-1, RB (B) (C)
0.270%, 07/01/34 5,350 5,350
Los Angeles, Department of Water & Power, Sub-Ser B-2, RB (B) (C)
0.270%, 07/01/34 12,600 12,600
Los Angeles, Department of Water & Power, Sub-Ser B-2, RB (B) (C)
0.300%, 07/01/35 35,500 35,500
Los Angeles, Department of Water & Power, Sub-Ser B-3, RB (B) (C)
0.320%, 07/01/34 5,000 5,000
Los Angeles, Department of Water & Power, Sub-Ser B-4, RB (B) (C)
0.270%, 07/01/35 4,400 4,400
Los Angeles, Unified School District, Ser B, COP (A) (B) (C)
0.260%, 10/01/31 9,000 9,000
Los Angeles, Unified School District, Ser D, GO, FGIC Pre-Refunded @ 100 (D)
5.375%, 07/01/10 6,000 6,074
Los Angeles, Wastewater Systems Authority, Sub-Ser C, RB (A) (B) (C)
0.260%, 06/01/28 2,500 2,500
Los Angeles, Wastewater Systems Authority, Sub-Ser F-2, RB (A) (B) (C)
0.270%, 06/01/32 7,000 7,000
Metropolitan Water District of Southern California, RB (B) (C)
0.260%, 07/01/35 1,200 1,200
Oakland Alameda County, Coliseum Project, Ser C-1, RB (A) (B) (C)
0.270%, 02/01/25 15,000 15,000
Orange County, Sanitation District Authority, Ser A, COP (B) (C)
0.310%, 08/01/29 13,730 13,730
Orange County, Sanitation District Authority, Ser A,TRAN
2.000%, 06/30/10 7,000 7,027
Orange County, Sanitation District Authority, Ser B, COP (B) (C)
0.310%, 08/01/30 15,205 15,205
Orange County, Water District Authority, Ser A, COP (B) (C)
0.250%, 08/01/42 2,800 2,800
Pasadena, Public Financing Authority, Rose Bowl Refinancing & Improvement Project,
RB (A) (B) (C)
0.260%, 12/01/23 15,625 15,625
Riverside County, Public Facilities Authority, Ser C, COP (A) (B) (C)
0.270%, 12/01/15 11,100 11,100
Riverside, Water Authority, Ser A, RB (B) (C)
0.300%, 10/01/35 8,265 8,265
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 39
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------------------------------- ----------------- -----------
Sacramento County, Sanitation District Authority, Sub-Ser B, RB (A) (B) (C)
0.280%, 12/01/37 $ 2,000 $ 2,000
Sacramento County, Sanitation District Authority, Sub-Ser E, RB (A) (B) (C)
0.260%, 12/01/40 6,500 6,500
San Diego County, Regional Transportation Commission, Ser B, RB (B) (C)
0.280%, 04/01/38 13,350 13,350
San Diego County, Regional Transportation Commission, Ser C, RB (B) (C)
0.290%, 04/01/38 4,900 4,900
San Diego County, School District, Ser A,TRAN
2.000%, 06/30/10 11,000 11,044
San Diego, Unified School District,TRAN
2.000%, 07/08/10 9,075 9,111
San Francisco City & County, Airports Commission, Ser 37C-RMKT, RB, AGM (B) (C)
0.320%, 05/01/29 5,000 5,000
San Jose, Redevelopment Agency, Merged Area Redevelopment Project, Ser A, RB (A) (B) (C)
0.260%, 07/01/26 7,150 7,150
Santa Barbara County, Ser A,TRAN
2.500%, 06/30/10 5,715 5,745
Santa Clara County, Financing Authority, Multiple Facilities Projects, Ser M,
RB (A) (B) (C)
0.260%, 05/15/35 17,105 17,105
Santa Clara County, Financing Authority, VMC Facility Replacement Project, Ser B,
RB (B) (C)
0.360%, 11/15/25 13,475 13,475
Santa Clara Valley, Transportation Authority, Ser C, RB (B) (C)
0.290%, 04/01/36 8,000 8,000
Santa Clara Valley, Transportation Authority, Ser D, RB (B) (C)
0.270%, 04/01/36 17,300 17,300
Santa Clara, Electric Authority, Sub-Ser B, RB (A) (B) (C)
0.290%, 07/01/27 4,975 4,975
Santa Cruz County,TRAN
2.000%, 07/08/10 5,000 5,020
Southern California Public Power Authority, Ser A, RB
2.000%, 08/03/10 2,000 2,011
Southern California, Metropolitan Water District Authority, Ser A-1, RB (B) (C)
0.270%, 07/01/21 500 500
Southern California, Metropolitan Water District Authority, Ser C-1, RB (B) (C)
0.280%, 07/01/36 7,500 7,500
Southern California, Metropolitan Water District Authority, Ser C-2, RB (B) (C)
0.330%, 07/01/36 20,720 20,720
Southern California, Metropolitan Water District Authority, Water Works Authorization
Project, Ser B, RB (B) (C)
0.270%, 07/01/28 11,985 11,985
State of California, GO (A) (B) (C)
0.270%, 05/01/34 20,000 20,000
State of California, GO (A) (B) (C)
0.290%, 05/01/34 25,600 25,600
State of California, GO (A) (B) (C)
0.250%, 05/01/34 9,200 9,200
State of California, GO (A) (B) (C)
0.270%, 05/01/34 9,200 9,200
State of California, Ser B-4 RMKT 12/01/09, GO (A) (B) (C)
0.260%, 05/01/33 2,400 2,400
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 40
schedule of investments
MARCH 31, 2010 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ------------------------------------------------------------------- ----------------- -----------
State of California,
Ser C-11 RMKT, GO (A) (B) (C)
0.280%, 07/01/23 $ 20,000 $ 20,000
Turlock, Irrigation District,
Capital Improvement & Refunding Project,COP (A) (B) (C)
0.270%, 01/01/31 5,875 5,875
Turlock, Irrigation District,
First Priority Project, Sub-Ser, RB
1.500%, 06/08/10 10,000 10,018
Tustin, Improvement Board Act,
Reassessment District No. 95-2-A, Ser A, SAB (A) (B) (C)
0.280%, 09/02/13 8,685 8,685
University of California,
Regents Medical Center, Ser B 1, RB (B) (C)
0.300%, 05/15/32 4,125 4,125
-----------
TOTAL CALIFORNIA 837,873
===========
CONNECTICUT [1.7%]
Connecticut State,
Health & Educational Facility Authority, Yale University Project,
Ser U2, RB (B) (C)
0.250%, 07/01/33 10,000 10,000
Connecticut State,
Health & Educational Facility Authority, Yale University Project,
Ser X-2, RB (B) (C)
0.290%, 07/01/37 6,000 6,000
-----------
TOTAL CONNECTICUT 16,000
===========
MASSACHUSETTS [0.6%]
Massachusetts State,
Development Finance Agency, Harvard University
Project, Ser HH, RB (B) (C)
0.260%, 07/15/33 5,950 5,950
===========
TEXAS [3.0%]
University of Texas,
Ser A, RB (B) (C)
0.250%, 08/15/13 3,795 3,795
University of Texas,
Ser B, RB (B) (C)
0.270%, 08/01/33 23,500 23,500
-----------
TOTAL TEXAS 27,295
===========
VIRGINIA [0.5%]
University of Virginia,
Ser A, RB (B) (C)
0.250%, 06/01/34 4,965 4,965
===========
TOTAL MUNICIPAL BONDS
(Cost $ 892,083) 892,083
===========
COMMERCIAL PAPER [3.0%]
CALIFORNIA [3.0%]
Contra Costa,Water District
0.250%, 06/03/10 12,700 12,700
San Francisco, Public Utilities
0.160%, 04/05/10 15,000 15,000
===========
TOTAL COMMERCIAL PAPER
(Cost $ 27,700) 27,700
===========
TOTAL INVESTMENTS [99.8%]
(Cost $919,783) $ 919,783
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $921,421 ($ THOUSANDS).
(A) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR
BANK OR FINANCIAL INSTITUTION.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON
MARCH 31, 2010.
(C) PUT AND DEMAND FEATURE -- THE DATE REPORTED IS THE NEXT RESET DATE.
(D) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
AGM -- ASSURED GUARANTY MUNICIPAL CORPORATION
COP -- CERTIFICATE OF PARTICIPATION
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
GO -- GENERAL OBLIGATION
RB -- REVENUE BOND
SAB -- SPECIAL ASSESSMENT BOND
SER -- SERIES
TRAN -- TAX & REVENUE ANTICIPATION NOTE
The following is a summary of the inputs used as of March 31, 2010 in valuing
the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total
------- --------- ------- ---------
Investments in Securities
Municipal Bonds $ -- $ 892,083 $ -- $ 892,083
Commercial Paper -- 27,700 -- 27,700
------- --------- ------- ---------
Total Investments in Securities $ -- $ 919,783 $ -- $ 919,783
======= ========= ======= =========
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 41
statements of assets and liabilities (000)
MARCH 31, 2010 (UNAUDITED)
Large Cap Value Large Cap Growth RCB Small Cap Opportunistic
Equity Fund Equity Fund Value Fund Value Fund
--------------- ---------------- ------------- -------------
ASSETS:
Cost of securities (including repurchase agreements) $ 99,069 $ 32,116 $ 19,707 $ 11,617
=============== ================ ============= =============
Investments in securities at value $ 102,875 $ 36,739 $ 23,900 $ 17,239
Repurchase agreements at value -- -- 1,382 --
Cash -- -- 5 --
Receivable for investment securities sold -- -- 319 2,246
Income receivable 166 23 49 15
Receivable for capital shares sold 392 185 55 --
Prepaid expenses 4 2 5 --
--------------- ---------------- ------------- -------------
Total Assets 103,437 36,949 25,715 19,500
--------------- ---------------- ------------- -------------
LIABILITIES:
Payable for investment securities purchased -- -- 95 --
Payable for capital shares redeemed 9 -- 21 --
Payable for income distributions 82 21 -- --
Investment adviser fees payable 53 20 18 8
Shareholder servicing & distribution fees payable 24 10 6 --
Administrative fees payable 4 2 1 1
Payable to custodian -- -- -- 2,115
Accrued expenses 7 3 12 2
--------------- ---------------- ------------- -------------
Total Liabilities 179 56 153 2,126
--------------- ---------------- ------------- -------------
NET ASSETS $ 103,258 $ 36,893 $ 25,562 $ 17,374
=============== ================ ============= =============
NET ASSETS:
Paid-in Capital (unlimited authorization -- $0.01 par value) $ 109,238 $ 36,730 $ 27,762 $ 25,647
Undistributed (distribution in excess of) net investment income -- (1) 20 (1)
Accumulated net realized loss on investments (9,786) (4,459) (7,795) (13,894)
Net unrealized appreciation on investments 3,806 4,623 5,575 5,622
--------------- ---------------- ------------- -------------
NET ASSETS $ 103,258 $ 36,893 $ 25,562 $ 17,374
=============== ================ ============= =============
Institutional Class Shares ($Dollars):
Net Assets $ 92,647,884 $ 27,155,120 $ 2,886,908 $ 98
Total shares outstanding at end of period 11,653,430 3,483,269 136,473 13
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 7.95 $ 7.80 $ 21.15 $ 7.41
Class N Shares ($Dollars):
Net Assets $ 10,610,354 $ 9,738,221 $ 4,855,906 $ 26,940
Total shares outstanding at end of period 1,336,929 1,262,453 234,148 3,655
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 7.94 $ 7.71 $ 20.74 $ 7.37
Class E Shares ($Dollars):
Net Assets $ -- $ -- $ -- $ 17,347,255
Total shares outstanding at end of period -- -- -- 2,385,480
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ -- $ -- $ -- $ 7.27
Class R Shares ($Dollars):
Net Assets $ -- $ -- $ 17,818,748 $ --
Total shares outstanding at end of period -- -- 857,894 --
Net asset value and redemption price per share
(net assets / shares outstanding) $ -- $ -- $ 20.77 $ --
Maximum offering price per share
(net asset value / 96.50%) $ -- $ -- $ 21.52 $ --
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 42
statements of assets and liabilities (000)
MARCH 31, 2010 (UNAUDITED)
California
Multi-Asset Corporate Government Tax Exempt
Fund Bond Fund Bond Fund Bond Fund
------------ ------------- ------------- ------------
ASSETS:
Cost of securities (including affiliated investments and
repurchase agreements) $ 27,123 $ 96,690 $ 153,646 $ 38,699
============ ============= ============= ============
Investments in securities at value $ 24,089 $ 100,532 $ 152,244 $ 39,511
Affiliated investments at value 4,675 -- -- --
Repurchase agreements at value -- -- 2,000 --
Income receivable 49 1,167 921 506
Receivable for capital shares sold 25 488 451 --
Prepaid expenses 1 4 4 2
------------ ------------- ------------- ------------
Total Assets 28,839 102,191 155,620 40,019
------------ ------------- ------------- ------------
LIABILITIES:
Payable for income distributions 15 212 93 56
Payable for capital shares redeemed 4 -- 33 175
Investment adviser fees payable 12 34 47 5
Shareholder servicing & distribution fees payable 10 22 33 9
Administrative fees payable 1 4 7 2
Accrued expenses 2 7 9 3
------------ ------------- ------------- ------------
Total Liabilities 44 279 222 250
------------ ------------- ------------- ------------
NET ASSETS $ 28,795 $ 101,912 $ 155,398 $ 39,769
============ ============= ============= ============
NET ASSETS:
Paid-in Capital (unlimited authorization -- $0.01 par value) $ 31,095 $ 99,015 $ 154,913 $ 38,975
Undistributed (distribution in excess of) net investment income 2 (1) 1 1
Accumulated net realized loss on investments (3,943) (944) (114) (19)
Net unrealized appreciation on investments 1,641 3,842 598 812
============ ============= ============= ============
Net Assets $ 28,795 $ 101,912 $ 155,398 $ 39,769
============ ============= ============= ============
Institutional Class Shares ($Dollars):
Net Assets $ 8,828,546 $ 100,398,136 $ 151,675,683 $ 37,845,222
Total shares outstanding at end of period 869,845 9,458,720 14,407,228 3,622,099
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 10.15 $ 10.61 $ 10.53 $ 10.45
Class N Shares ($Dollars):
Net Assets $ 19,966,516 $ 1,514,353 $ 3,722,341 $ 1,923,522
Total shares outstanding at end of period 1,968,005 142,558 352,885 183,593
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 10.15 $ 10.62 $ 10.55 $ 10.48
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 43
statements of assets and liabilities (000)
MARCH 31, 2010 (UNAUDITED)
California
Prime Government Tax Exempt
High Yield Money Market Money Market Money Market
Bond Fund Fund Fund Fund
------------ ------------- --------------- -------------
ASSETS:
Cost of securities (including repurchase agreements) $ 48,879 $ 1,353,134 $ 2,851,892 $ 919,783
============ ============= =============== =============
Investments in securities at value $ 49,080 $ 1,164,434 $ 2,340,592 $ 919,783
Repurchase agreements at value -- 188,700 511,300 --
Cash 71 -- 74 600
Income receivable 941 361 1,580 1,213
Receivable for investment securities sold 232 -- -- --
Receivable for capital shares sold 161 -- -- --
Prepaid expenses 1 69 129 424
------------ ------------- --------------- -------------
Total Assets 50,486 1,353,564 2,853,675 922,020
------------ ------------- --------------- -------------
LIABILITIES:
Payable for income distributions 116 44 15 6
Payable for investment securities purchased 3,359 -- -- --
Investment adviser fees payable 23 102 155 88
Shareholder servicing & distribution fees payable 15 36 39 10
Administrative fees payable 2 50 99 36
Accrued expenses 3 122 208 459
------------ ------------- --------------- -------------
Total Liabilities 3,518 354 516 599
------------ ------------- --------------- -------------
NET ASSETS $ 46,968 $ 1,353,210 $ 2,853,159 $ 921,421
============ ============= =============== =============
Net Assets:
Paid-in Capital (unlimited authorization -- $0.01 par value) $ 50,789 $ 1,353,175 $ 2,853,143 $ 921,418
Undistributed (distribution in excess of) net investment income (1) 84 12 2
Accumulated net realized gain (loss) on investments (4,021) (49) 4 1
Net unrealized appreciation on investments 201 -- -- --
============ ============= =============== =============
NET ASSETS $ 46,968 $ 1,353,210 $ 2,853,159 $ 921,421
============ ============= =============== =============
Institutional Class Shares ($Dollars):
Net Assets $ 24,211,636 $ 498,511,690 $ 94,890,492 $ 140,464,038
Total shares outstanding at end of period 2,977,893 498,570,199 94,891,514 140,465,710
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 8.13 $ 1.00 $ 1.00 $ 1.00
Class N Shares ($Dollars):
Net Assets $ 22,756,723 $ 500,784,226 $ 2,490,107,437 $ 723,184,375
Total shares outstanding at end of period 2,799,148 500,828,713 2,490,091,384 723,185,639
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 8.13 $ 1.00 $ 1.00 $ 1.00
Class S Shares ($Dollars):
Net Assets $ -- $ 353,914,268 $ 268,161,555 $ 57,772,548
Total shares outstanding at end of period -- 353,868,691 268,160,409 57,768,814
Net asset value and redemption price per share
(net assets / shares outstanding) $ -- $ 1.00 $ 1.00 $ 1.00
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 44
statements of operations
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED)
Large Cap Value Large Cap Growth RCB Small Cap Opportunistic
Equity Fund Equity Fund Value Fund Value Fund
(000) (000) (000) (000)
--------------- ---------------- ------------- -------------
INCOME:
Dividend Income $ 1,089 $ 279 $ 172 $ 131
Less: Foreign Taxes Withheld (1) -- -- --
--------------- ---------------- ------------- -------------
Total Investment Income 1,088 279 172 131
--------------- ---------------- ------------- -------------
EXPENSES:
Investment Advisory Fee 293 119 98 47
Shareholder Servicing Fees--Institutional Class 106 34 3 --
Shareholder Servicing Fees--Class N(1) 24 24 11 --
Shareholder Servicing Fees--Class R(1) -- -- 41 --
Administration Fee 23 9 6 5
Transfer Agent Fees 4 2 22 1
Trustee Fees 2 1 1 1
Professional Fees 6 2 1 1
Printing Fees 2 1 1 --
Custody Fees 2 1 1 1
Registration Fees 1 1 -- 1
Insurance and Other Expenses 5 2 1 2
--------------- ---------------- ------------- -------------
Total Expenses 468 196 186 59
--------------- ---------------- ------------- -------------
Less, Waiver/Reimbursement of:
Shareholder Servicing Fees--Class R(1) -- -- (32) --
Investment Advisory Fee
Transfer Agent Fees (4) (2) (1) (1)
--------------- ---------------- ------------- -------------
Net Expenses 464 194 153 58
--------------- ---------------- ------------- -------------
NET INVESTMENT INCOME 624 85 19 73
--------------- ---------------- ------------- -------------
Net Realized Gain/(Loss) From Securities Transactions 866 (398) 1,500 3,889
Net Change in Unrealized Appreciation (Depreciation)
on Investments 7,525 3,950 1,732 (1,579)
--------------- ---------------- ------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 9,015 $ 3,637 $ 3,251 $ 2,383
=============== ================ ============= =============
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 45
statements of operations
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED)
California
Multi-Asset Corporate Government Tax Exempt
Fund Bond Fund Bond Fund Bond Fund
(000) (000) (000) (000)
--------------- ---------------- ------------- -------------
INCOME:
Interest Income $ 7 $ 1,966 $ 2,047 $ 714
Dividend Income 332 1 -- 1
Income from Affiliated Investments 61 -- -- --
--------------- ---------------- ------------- -------------
Total Investment Income 400 1,967 2,047 715
--------------- ---------------- ------------- -------------
EXPENSES:
Investment Advisory Fee 67 192 268 54
Shareholder Servicing Fees--Institutional Class 10 119 151 48
Shareholder Servicing Fees--Class N(1) 45 3 9 4
Administration Fee 7 24 31 10
Transfer Agent Fees 1 4 6 2
Trustee Fees 1 2 3 1
Professional Fees 1 6 7 2
Printing Fees 1 2 3 1
Custody Fees 1 2 2 1
Registration Fees -- 1 1 1
Insurance and Other Expenses 1 5 4 2
--------------- ---------------- ------------- -------------
Total Expenses 135 360 485 126
--------------- ---------------- ------------- -------------
Recovery of Investment Advisory Fees
Previously Waived(2) -- 2 -- --
Less, Waivers of:
Investment Advisory Fees -- -- (40) (22)
Transfer Agent Fees (1) (4) (6) (2)
--------------- ---------------- ------------- -------------
NET EXPENSES 134 358 439 102
--------------- ---------------- ------------- -------------
NET INVESTMENT INCOME 266 1,609 1,608 613
--------------- ---------------- ------------- -------------
Net Realized Gain (Loss) From Securities Transactions 280 271 (1) 168
Net Realized Gain From Affiliated Investments 12 -- -- --
Net Change in Unrealized Appreciation (Depreciation)
on Investments 482 189 (638) (620)
Net Change in Unrealized Appreciation on
Affiliated Investments 2 -- -- --
--------------- ---------------- ------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,042 $ 2,069 $ 969 $ 161
=============== ================ ============= =============
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
(2) SEE NOTE 4 FOR ADVISORY FEES ACCRUED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 46
statements of operations
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED)
California
Prime Government Tax Exempt
High Yield Money Market Money Market Money Market
Bond Fund Fund Fund Fund
(000) (000) (000) (000)
--------------- ---------------- ------------- -------------
INCOME:
Interest Income $ 1,951 $ 2,101 $ 2,812 $ 1,041
Dividend Income -- 1 -- --
--------------- ---------------- ------------- -------------
Total Investment Income 1,951 2,102 2,812 1,041
--------------- ---------------- ------------- -------------
EXPENSES:
Investment Advisory Fee 144 1,806 3,812 1,323
Shareholder Servicing Fees--Institutional Class 22 659 123 189
Shareholder Servicing Fees--Class N(1) 58 2,114 9,521 2,880
Shareholder Servicing Fees--Class S(1) -- 1,327 1,107 228
Administration Fee 9 359 728 243
Transfer Agent Fees 2 68 137 46
Trustee Fees 1 37 75 24
Professional Fees 2 94 195 62
Printing Fees 1 34 89 25
Custody Fees 1 35 75 23
Registration Fees -- 24 42 14
Insurance and Other Expenses 2 85 176 56
--------------- ---------------- ------------- -------------
Total Expenses 242 6,642 16,080 5,113
--------------- ---------------- ------------- -------------
Less, Waivers of:
Investment Advisory Fees (17) (1,022) (2,979) (933)
Administration Fees -- (54) (109) (36)
Shareholder Servicing Fees--Institutional Class -- (659) (123) (189)
Shareholder Servicing Fees--Class N(1) -- (1,978) (9,276) (2,806)
Shareholder Servicing Fees--Class S(1) -- (1,205) (1,050) (216)
Transfer Agent Fees (2) (68) (137) (46)
--------------- ---------------- ------------- -------------
NET EXPENSES 223 1,656 2,406 887
--------------- ---------------- ------------- -------------
NET INVESTMENT INCOME 1,728 446 406 154
--------------- ---------------- ------------- -------------
Net Realized Gain From Securities Transactions 536 -- -- 10
Net Change in Unrealized Appreciation on Investments 2,258 -- -- --
--------------- ---------------- ------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,522 $ 446 $ 406 $ 164
=============== ================ ============= =============
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 47
statements of changes in net assets
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER
30, 2009
Large Cap Value Large Cap Growth
Equity Fund (000) Equity Fund (000)
------------------- -------------------
2010 2009 2010 2009
-------- -------- -------- --------
OPERATIONS:
Net Investment Income (Loss) $ 624 $ 1,621 $ 85 $ 212
Net Realized Gain (Loss) from Security Transactions and
Affiliated Investments 866 (8,654) (398) (1,908)
Net Change in Unrealized Appreciation
(Depreciation) on Investments and Affiliated Investments 7,525 (2,607) 3,950 (113)
-------- -------- -------- --------
Net Increase (Decrease) in Net Assets
Resulting from Operations 9,015 (9,640) 3,637 (1,809)
-------- -------- -------- --------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income:
INSTITUTIONAL CLASS (570) (1,358) (72) (182)
CLASS N (53) (137) (14) (40)
CLASS R -- -- -- --
CLASS E -- -- -- --
Realized Capital Gains:
INSTITUTIONAL CLASS -- -- -- --
CLASS N -- -- -- --
CLASS R -- -- -- --
-------- -------- -------- --------
Total Dividends & Distributions (623) (1,495) (86) (222)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares issued 10,932 20,103 2,453 6,861
Shares issued in Lieu of Dividends and Distributions 406 950 24 56
Shares Redeemed (7,542) (18,562) (6,011) (8,638)
-------- -------- -------- --------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 3,796 2,491 (3,534) (1,721)
-------- -------- -------- --------
CLASS N:
Shares issued 1,056 538 423 554
Shares issued in Lieu of Dividends and Distributions 36 93 9 25
Shares Redeemed (290) (1,792) (726) (2,072)
-------- -------- -------- --------
Increase (Decrease) in Net Assets from
Class N Share Transactions 802 (1,161) (294) (1,493)
-------- -------- -------- --------
CLASS R:
Shares Issued -- -- -- --
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- -- --
-------- -------- -------- --------
Decrease in Net Assets from
Class R Share Transactions -- -- -- --
-------- -------- -------- --------
CLASS E:
Shares Issued -- -- -- --
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- -- --
-------- -------- -------- --------
Decrease in Net Assets from
Class E Share Transactions -- -- -- --
-------- -------- -------- --------
Net Increase (Decrease) in Net Assets from Share Transactions 4,598 1,330 (3,828) (3,214)
-------- -------- -------- --------
Total Increase (Decrease) in Net Assets 12,990 (9,805) (277) (5,245)
-------- -------- -------- --------
NET ASSETS:
Beginning of Period 90,268 100,073 37,170 42,415
-------- -------- -------- --------
End of Period $103,258 $ 90,268 $ 36,893 $ 37,170
======== ======== ======== ========
Undistributed (Distributions in Excess of)
Net Investment Income $ -- $ (1) $ (1) $ --
-------- -------- -------- --------
(1) SEE NOTE 8 FOR SHARES ISSUED AND REDEEMED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 48
RCB Small Cap Opportunistic Value Multi-Asset Corporate Bond
Value Fund (000) Fund (000) Fund (000) Fund (000)
- ----------------------- ----------------------- ----------------------- -----------------------
2010 2009 2010 2009 2010 2009 2010 2009
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 19 $ (4) $ 73 $ 328 $ 266 $ 375 $ 1,609 $ 2,952
1,500 (8,609) 3,889 (17,058) 292 (3,856) 271 (674)
1,732 10,677 (1,579) 12,304 484 3,982 189 6,838
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
3,251 2,064 2,383 (4,426) 1,042 501 2,069 9,116
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
-- (29) -- (1) (96) (149) (1,590) (2,926)
-- (69) -- (1) (179) (226) (20) (26)
(14) (341) -- -- -- -- -- --
-- -- (73) (501) -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(14) (439) (73) (503) (275) (375) (1,610) (2,952)
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
488 750 4 127 1,132 4,298 18,571 27,853
-- 29 -- 1 78 90 429 676
(268) (537) (165) -- (1,054) (6,506) (7,954) (15,448)
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
220 242 (161) 128 156 (2,118) 11,046 13,081
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
209 17 25 5 3,927 3,250 555 488
-- 50 -- -- 95 107 8 13
(189) (403) (12) -- (1,410) (3,554) (48) (171)
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
20 (336) 13 5 2,612 (197) 515 330
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
442 961 -- -- -- -- -- --
14 325 -- -- -- -- -- --
(1,669) (4,706) -- -- -- -- -- --
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(1,213) (3,420) -- -- -- -- -- --
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
-- -- -- 16,515 -- -- -- --
-- -- 73 500 -- -- -- --
-- -- (11,126) (31,200) -- -- -- --
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
-- -- (11,053) (14,185) -- -- -- --
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(973) (3,514) (11,201) (14,052) 2,768 (2,315) 11,561 13,411
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,264 (1,889) (8,891) (18,981) 3,535 (2,189) 12,020 19,575
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
23,298 25,187 26,265 45,246 25,260 27,449 89,892 70,317
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 25,562 $ 23,298 $ 17,374 $ 26,265 $ 28,795 $ 25,260 $ 101,912 $ 89,892
========== ========== ========== ========== ========== ========== ========== ==========
$ 20 $ 15 $ (1) $ (1) $ 2 $ 11 $ (1) $ --
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 49
statements of changes in net assets
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER
30, 2009
Government California Tax Exempt
Bond Fund (000) Bond Fund (000)
------------------- ---------------------
2010 2009 2010 2009
-------- -------- --------- ---------
OPERATIONS:
Net Investment Income $ 1,608 $ 2,406 $ 613 $ 1,151
Net Realized Gain (Loss) from
Security Transactions (1) 453 168 (93)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (638) 805 (620) 1,914
-------- -------- --------- ---------
Net Increase in Net Assets
Resulting from Operations 969 3,664 161 2,972
-------- -------- --------- ---------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (1,567) (2,343) (591) (1,110)
CLASS N (40) (92) (21) (41)
CLASS R -- -- -- --
-------- -------- --------- ---------
Realized Capital Gains
Institutional Shares -- -- -- --
Class A Shares -- -- -- --
Class S Shares -- -- -- --
-------- -------- --------- ---------
Total Dividends and Distributions (1,607) (2,435) (612) (1,151)
-------- -------- --------- ---------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 98,086 22,819 4,330 12,423
Shares Issued in Lieu of Dividends and Distributions 941 677 248 403
Shares Redeemed (18,697) (18,805) (4,889) (10,248)
-------- -------- --------- ---------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 80,330 4,691 (311) 2,578
-------- -------- --------- ---------
CLASS N:
Shares Issued 756 1,066 838 1,359
Shares Issued in Lieu of Dividends and Distributions 16 39 6 12
Shares Redeemed (141) (808) (796) (598)
-------- -------- --------- ---------
Increase (Decrease) in Net Assets from
Class N Share Transactions 631 297 48 773
-------- -------- --------- ---------
CLASS S:
Shares Issued -- -- -- --
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- -- --
-------- -------- --------- ---------
Decrease in Net Assets from
Class S Share Transactions -- -- -- --
-------- -------- --------- ---------
Net Increase (Decrease) in Net Assets from
Share Transactions 80,961 4,988 (263) 3,351
-------- -------- --------- ---------
Total Increase (Decrease) in Net Assets 80,323 6,217 (714) 5,172
-------- -------- --------- ---------
NET ASSETS:
Beginning of Period 75,075 68,858 40,483 35,311
-------- -------- --------- ---------
End of Period $155,398 $ 75,075 $ 39,769 $ 40,483
======== ======== ========= =========
Undistributed (Distribution in Excess of)
Net Investment Income $ 1 $ -- $ 1 $ --
-------- -------- --------- ---------
(1) SEE NOTE 8 FOR SHARES ISSUED AND REDEEMED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 50
High Yield Prime Money Government Money California Tax Exempt
Bond Fund (000) Market Fund (000) Market Fund (000) Money Market Fund (000)
- ----------------------- ------------------------ ------------------------- ------------------------
2010 2009 2010 2009 2010 2009 2010 2009
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
$ 1,728 $ 2,698 $ 446 $ 7,504 $ 406 $ 6,637 $ 154 $ 2,951
536 (3,203) -- 117 -- 4 10 --
2,258 4,440 -- -- -- -- -- --
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
4,522 3,935 446 7,621 406 6,641 164 2,951
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
(792) (1,246) (258) (2,739) (24) (356) (37) (612)
(937) (1,509) (139) (3,352) (372) (5,784) (112) (2,109)
-- -- (52) (1,412) (15) (495) (3) (232)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
-- -- (58) -- -- -- (2) --
-- -- (68) -- -- -- (7) --
-- -- (40) -- -- -- (1) --
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
(1,729) (2,755) (615) (7,503) (411) (6,635) (162) (2,953)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
11,213 2,072 689,562 1,288,265 223,814 655,511 529,058 1,126,167
551 834 53 442 1 8 -- --
(5,170) (999) (734,370) (1,278,342) (252,788) (632,330) (530,173) (1,142,015)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
6,594 1,907 (44,755) 10,365 (28,973) 23,189 (1,115) (15,848)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
2,294 2,628 669,844 2,117,635 2,139,407 4,478,647 612,913 1,708,583
616 1,002 128 1,555 304 4,161 114 1,814
(1,321) (2,172) (825,887) (2,586,377) (2,198,746) (4,940,602) (594,684) (1,886,349)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
1,589 1,458 (155,915) (467,187) (59,035) (457,794) 18,343 (175,952)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
-- -- 590,611 1,140,178 427,014 659,453 58,501 354,327
-- -- -- -- -- -- -- --
-- -- (609,419) (1,401,263) (457,694) (769,358) (75,125) (421,688)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
-- -- (18,808) (261,085) (30,680) (109,905) (16,624) (67,361)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
8,183 3,365 (219,478) (717,907) (118,688) (544,510) 604 (259,161)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
10,976 4,545 (219,647) (717,789) (118,693) (544,504) 606 (259,163)
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
35,992 31,447 1,572,857 2,290,646 2,971,852 3,516,356 920,815 1,179,978
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
$ 46,968 $ 35,992 $1,353,210 $ 1,572,857 $ 2,853,159 $ 2,971,852 $ 921,421 $ 920,815
========== ========== ========== =========== =========== =========== ========== ===========
$ (1) $ -- $ 84 $ 87 $ 12 $ 17 $ 2 $ --
- ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STA TEMENTS.
CNI CHARTER FUNDS | PAGE 51
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEAR OR PERIOD ENDED
SEPTEMBER 30,
NET
NET REALIZED AND DISTRIBUTIONS NET NET
ASSET NET UNREALIZED DIVIDENDS FROM ASSET ASSETS
VALUE INVESTMENT GAINS (LOSSES) FROM NET REALIZED VALUE END
BEGINNING INCOME ON INVESTMENT CAPITAL END TOTAL OF PERIOD
OF PERIOD (LOSS)+ SECURITIES+ INCOME GAINS OF PERIOD RETURN++ (000)
--------- ---------- -------------- ---------- ------------- --------- -------- ---------
Large Cap Value Equity Fund
Institutional Class (commenced operations on January 14, 2000)
2010* $ 7.28 $ 0.05 $ 0.67 $(0.05) $ -- $ 7.95 9.91% $ 92,648
2009 8.25 0.13 (0.98) (0.12) -- 7.28 (10.03) 81,308
2008 11.21 0.16 2.48 (0.15) (0.49) 8.25 (21.57) 88,361
2007 10.36 0.19 1.38 (0.19) (0.53) 11.21 15.60 110,024
2006 9.54 0.13 1.21 (0.13) (0.39) 10.36 14.50 92,946
2005 8.77 0.10 1.13 (0.10) (0.36) 9.54 14.39 42,974
Class N (commenced operations on April 13, 2000)
2010* $ 7.27 $ 0.04 $ 0.67 $(0.04) $ -- $ 7.94 9.80% $ 10,610
2009 8.24 0.12 (0.98) (0.11) -- 7.27 (10.27) 8,960
2008 11.19 0.13 (2.46) (0.13) (0.49) 8.24 (21.72) 11,712
2007 10.35 0.16 1.37 (0.16) (0.53) 11.19 15.24 17,190
2006 9.53 0.11 1.20 (0.10) (0.39) 10.35 14.24 13,104
2005 8.76 0.09 1.12 (0.08) (0.36) 9.53 14.14 10,664
Large Cap Growth Equity Fund
Institutional Class (commenced operations on January 14, 2000)
2010* $ 7.08 $ 0.02 $ 0.72 $(0.02) $ -- $ 7.80 10.46% $ 27,155
2009 7.38 0.04 (0.30) (0.04) -- 7.08 (3.36) 28,050
2008 8.86 0.03 (1.48) (0.03) -- 7.38 (16.40) 31,074
2007 7.75 0.05 1.10 (0.04) -- 8.86 14.91 45,784
2006 7.43 0.02 0.32 (0.02) -- 7.75 4.59 35,842
2005 6.76 0.04 0.67 (0.04) -- 7.43 10.55 34,164
Class N (commenced operations on March 28, 2000)
2010* $ 7.00 $ 0.01 $ 0.71 $(0.01) $ -- $ 7.71 10.30% $ 9,738
2009 7.31 0.03 (0.31) (0.03) -- 7.00 (3.77) 9,120
2008 8.77 0.01 (1.46) (0.01) -- 7.31 (16.55) 11,341
2007 7.68 0.01 1.10 (0.02) -- 8.77 14.51 15,063
2006 7.35 -- 0.33 --~ -- 7.68 4.55 10,363
2005 6.69 0.02 0.67 (0.03) -- 7.35 10.28 8,278
RCB Small Cap Value Fund
Institutional Class (commenced operations on October 3, 2001)
2010* $18.46 $(0.02) $ 2.71 $ -- $ -- $21.15 14.57% $ 2,887
2009 16.42 (0.02) 2.35 (0.29) -- 18.46 15.20 2,317
2008 30.79 0.19 (9.57) -- (4.99) 16.42 (35.01) 1,742
2007 28.25 0.02 3.00 (0.01) (0.47) 30.79 10.65 9,062
2006 28.58 0.06 0.05 (0.07) (0.37) 28.25 0.40 13,435
2005 27.30 0.07 2.58 -- (1.37) 28.58 9.87 13,975
Class N (commenced operations on October 3, 2001)
2010* $18.12 $ -- $ 2.62 $ -- $ -- $20.74 14.46% $ 4,856
2009 16.14 (0.05) 2.30 (0.27) -- 18.12 14.91 4,226
2008 30.42 0.15 (9.44) -- (4.99) 16.14 (35.16) 4,262
2007 27.98 (0.05) 2.96 -- (0.47) 30.42 10.37 9,753
2006 28.31 (0.01) 0.05 --~ (0.37) 27.98 0.17 10,470
2005 27.13 0.00 2.55 -- (1.37) 28.31 9.55 12,754
Class R (commenced operations on September 30, 1998)
2010* $18.15 $ 0.02 $ 2.62 $(0.02) $ -- $20.77 14.53% $ 17,819
2009 16.15 0.01 2.31 (0.32) -- 18.15 15.50 16,755
2008 30.38 0.20 (9.44) -- (4.99) 16.15 (35.02) 19,183
2007 27.93 (0.05) 2.97 -- (0.47) 30.38 10.43 40,944
2006 28.27 (0.01) 0.04 --~ (0.37) 27.93 0.14 45,836
2005 27.09 0.01 2.54 -- (1.37) 28.27 9.56 57,787
Opportunistic Value Fund
Institutional Class (commenced operations on June 26, 2008)
2010* $ 6.59 $ 0.02 $ 0.81 $(0.01) $ -- $ 7.41 12.65% $ --
2009 9.31 0.07 (1.11) (1.68) -- 6.59 (6.81) 156
2008 10.00 0.05 (0.74) -- -- 9.31 (6.90) --
Class N (commenced operations on June 26, 2008)
2010* $ 6.58 $ 0.01 $ 0.79 $(0.01) $ -- $ 7.37 12.23% $ 27
2009 9.31 0.06 (1.12) (1.67) -- 6.58 (7.12) 11
2008 10.00 0.04 (0.73) -- -- 9.31 (6.90) 7
Class E (commenced operations on June 26, 2008)
2010* $ 6.48 $ 0.03 $ 0.79 $(0.03) $ -- $ 7.27 12.65% $ 17,347
2009 9.30 0.09 (1.21) (1.70) -- 6.48 (7.57) 26,098
2008 10.00 0.04 (0.74) -- -- 9.30 (7.00) 45,239
RATIO
OF EXPENSES
RATIO TO AVERAGE
OF NET NET ASSETS
RATIO INVESTMENT (EXCLUDING
OF EXPENSES INCOME (LOSS) WAIVERS & PORTFOLIO
TO AVERAGE TO AVERAGE RECOVERED TURNOVER
NET Assets(1)(2) NET ASSETS(1) FEES)(1) RATE
---------------- ------------- ----------- ---------
Large Cap Value Equity Fund
Institutional Class (commenced operations on January 14, 2000
2010* 0.96% 1.34% 0.97% 14%
2009 0.96 2.11 0.97 18
2008 0.95 1.64 0.96 36
2007 0.96 1.73 0.97 24
2006 0.96 1.36 0.97 31
2005 0.96 1.12 0.97 34
Class N (commenced operations on April 13, 2000)
2010* 1.21% 1.09% 1.22% 14%
2009 1.21 1.89 1.22 18
2008 1.20 1.38 1.21 36
2007 1.21 1.47 1.22 24
2006 1.21 1.13 1.22 31
2005 1.21 0.87 1.22 34
Large Cap Growth Equity Fund
Institutional Class (commenced operations on January 14, 2000
2010* 0.99% 0.53% 1.00% 13%
2009 0.99 0.70 1.00 12
2008 0.98 0.35 0.99 26
2007 0.99 0.52 1.00 30
2006 0.99 0.27 1.00 34
2005 0.98 0.57 1.00 27
Class N (commenced operations on March 28, 2000)
2010* 1.24% 0.28% 1.25% 13%
2009 1.24 0.45 1.25 12
2008 1.23 0.11 1.24 26
2007 1.24 0.28 1.25 30
2006 1.24 0.03 1.25 34
2005 1.23 0.33 1.25 27
RCB Small Cap Value Fund
Institutional Class (commenced operations on October 3, 2001)
2010* 1.19% (0.19)% 1.20% 25%
2009 1.19 (0.13) 1.20 62
2008 1.19 0.85 1.20 78
2007 1.19 0.08 1.20 57
2006 1.20 0.20 1.21 66
2005 1.18 0.26 1.20 41
Class N (commenced operations on October 3, 2001)
2010* 1.44% 0.05% 1.45% 25%
2009 1.44 (0.37) 1.45 62
2008 1.44 0.70 1.45 78
2007 1.44 (0.16) 1.45 57
2006 1.45 (0.04) 1.46 66
2005 1.43 0.01 1.45 41
Class R (commenced operations on September 30, 1998)
2010* 1.30% 0.25% 1.70% 25%
2009 0.97 0.08 1.55 62
2008 1.23 0.92 1.55 78
2007 1.44 (0.17) 1.45 57
2006 1.45 (0.04) 1.46 66
2005 1.43 0.02 1.45 41
Opportunistic Value Fund
Institutional Class (commenced operations on June 26, 2008)
2010* 0.85% 0.51% 0.86% 17%
2009 0.93 1.13 0.94 144
2008 0.23(3) 1.83 0.23(3) 5
Class N (commenced operations on June 26, 2008)
2010* 1.11% 0.27% 1.12% 17%
2009 1.22 0.98 1.23 144
2008 1.20(3) 1.50 1.23(3) 5
Class E (commenced operations on June 26, 2008)
2010* 0.61% 0.79% 0.61% 17%
2009 0.68 1.53 0.69 144
2008 0.69(3) 1.44 0.70(3) 5
* FOR THE SIX MONTHS ENDED MARCH 31, 2010.
+ PER SHARE CALCULATIONS ARE BASED ON AVERAGE SHARES OUTSTANDING THROUGHOUT
THE PERIOD.
++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE
WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER. TOTAL RETURN FIGURES DO NOT INCLUDE APPLICABLE SALES
LOADS. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
~ AMOUNT REPRESENTS LESS THAN $0.01 PER SHARE.
(1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
(3) RATIO REFLECTS THE IMPACT OF THE INITIAL LOW LEVEL OF AVERAGE NET ASSETS
ASSOCIATED WITH COMMENCEMENT OF OPERATIONS. AMOUNTS DESIGNATED AS " -- "
ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 52
NET
NET REALIZED AND DISTRIBUTIONS NET NET
ASSET UNREALIZED DIVIDENDS FROM ASSET ASSETS
VALUE NET GAINS (LOSSES) FROM NET REALIZED VALUE END
BEGINNING INVESTMENT ON INVESTMENT CAPITAL END TOTAL OF PERIOD
OF PERIOD INCOME+ SECURITIES+ INCOME GAINS OF PERIOD RETURN++ (000)
--------- ---------- -------------- ---------- ------------- --------- -------- ---------
Multi-Asset Fund
Institutional Class (commenced operations on October 1, 2007)
2010* $ 9.87 $0.11 $ 0.28 $(0.11) $ -- $10.15 3.98% $ 8,829
2009 9.70 0.15 0.18 (0.16) -- 9.87 3.54 8,423
2008 11.00 0.25 (1.32) (0.23) -- 9.70 (9.84) 10,741
Class N (commenced operations on October 1, 2007)
2010* $ 9.86 $0.09 $ 0.30 $(0.10) $ -- $10.15 3.96% $ 19,966
2009 9.69 0.13 0.18 (0.14) -- 9.86 3.29 16,837
2008 11.00 0.23 (1.33) (0.21) -- 9.69 (10.12) 16,708
Corporate Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2010* $10.56 $0.18 $ 0.05 $(0.18) $ -- $10.61 2.16% $ 100,398
2009 9.76 0.39 0.80 (0.39) -- 10.56 12.48 88,897
2008 10.18 0.43 (0.41) (0.44) -- 9.76 0.04 69,709
2007 10.17 0.45 -- (0.44) -- 10.18 4.57 62,210
2006 10.27 0.42 (0.10) (0.42) -- 10.17 3.19 55,290
2005 10.60 0.40 (0.27) (0.40) (0.06) 10.27 1.26 51,193
Class N (commenced operations on April 13, 2000)
2010* $10.57 $0.16 $ 0.05 $(0.16) $ -- $10.62 2.03% $ 1,514
2009 9.77 0.36 0.81 (0.37) -- 10.57 12.19 995
2008 10.18 0.41 (0.41) (0.41) -- 9.77 (0.11) 608
2007 10.17 0.42 0.01 (0.42) -- 10.18 4.30 1,043
2006 10.27 0.39 (0.10) (0.39) -- 10.17 2.93 1,332
2005 10.61 0.37 (0.28) (0.37) (0.06) 10.27 0.91 1,530
Government Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2010* $10.58 $0.14 $(0.05) $(0.14) $ -- $10.53 0.83% $ 151,676
2009 10.40 0.35 0.18 (0.35) -- 10.58 5.18 71,966
2008 10.33 0.42 0.08 (0.43) -- 10.40 4.87 66,097
2007 10.28 0.46 0.05 (0.46) -- 10.33 5.04 52,606
2006 10.40 0.41 (0.12) (0.41) -- 10.28 2.89 35,671
2005 10.62 0.31 (0.16) (0.31) (0.06) 10.40 1.42 28,132
Class N (commenced operations on April 13, 2000)
2010* $10.60 $0.12 $(0.05) $(0.12) $ -- $10.55 0.70% $ 3,722
2009 10.42 0.32 0.18 (0.32) -- 10.60 4.91 3,109
2008 10.35 0.40 0.07 (0.40) -- 10.42 4.59 2,761
2007 10.30 0.44 0.04 (0.43) -- 10.35 4.77 2,632
2006 10.42 0.39 (0.12) (0.39) -- 10.30 2.63 1,782
2005 10.64 0.29 (0.17) (0.28) (0.06) 10.42 1.16 554
California Tax Exempt Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2010* $10.57 $0.16 $(0.12) $(0.16) $ -- $10.45 0.38% $ 37,845
2009 10.06 0.33 0.51 (0.33) -- 10.57 8.45 38,581
2008 10.24 0.32 (0.18) (0.32) -- 10.06 1.38 34,262
2007 10.25 0.31 (0.01) (0.31) -- 10.24 2.98 33,802
2006 10.26 0.29 0.03 (0.29) (0.04) 10.25 3.18 26,074
2005 10.41 0.28 (0.11) (0.28) (0.04) 10.26 1.65 22,768
Class N (commenced operations on April 13, 2000)
2010* $10.60 $0.15 $(0.12) $(0.15) $ -- $10.48 0.25% $ 1,924
2009 10.09 0.30 0.51 (0.30) -- 10.60 8.15 1,902
2008 10.27 0.30 (0.18) (0.30) -- 10.09 1.12 1,049
2007 10.27 0.28 -- (0.28) -- 10.27 2.82 922
2006 10.29 0.26 0.02 (0.26) (0.04) 10.27 2.81 1,134
2005 10.44 0.25 (0.11) (0.25) (0.04) 10.29 1.39 1,487
High Yield Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2010* $ 7.56 $0.36 $ 0.57 $(0.36) $ -- $ 8.13 12.55% $ 24,211
2009 7.40 0.62 0.18 (0.64) -- 7.56 12.94 16,355
2008 8.91 0.64 (1.47) (0.68) -- 7.40 (9.83) 13,926
2007 8.96 0.70 (0.06) (0.69) -- 8.91 7.27 17,137
2006 9.04 0.68 (0.08) (0.68) -- 8.96 6.90 20,887
2005 9.31 0.71 (0.27) (0.71) -- 9.04 4.85 22,588
Class N (commenced operations on January 14, 2000)
2010* $ 7.56 $0.35 $ 0.57 $(0.35) $ -- $ 8.13 12.39% $ 22,757
2009 7.40 0.60 0.18 (0.62) -- 7.56 12.61 19,637
2008 8.91 0.62 (1.47) (0.66) -- 7.40 (10.10) 17,521
2007 8.96 0.68 (0.07) (0.66) -- 8.91 6.95 20,121
2006 9.04 0.65 (0.08) (0.65) -- 8.96 6.58 20,045
2005 9.31 0.69 (0.27) (0.69) -- 9.04 4.54 21,028
RATIO
OF EXPENSES
RATIO TO AVERAGE
OF NET NET ASSETS
RATIO INVESTMENT (EXCLUDING
OF EXPENSES INCOME WAIVERS & PORTFOLIO
TO AVERAGE TO AVERAGE RECOVERED TURNOVER
NET Assets(1)(2) NET ASSETS(1) FEES)(1) RATE
---------------- ------------- ----------- ---------
Multi-Asset Fund
Institutional Class (commenced operations on October 1, 2007)
2010* 0.84% 2.20% 0.84% 41%
2009 0.83 1.71 0.84 94
2008 1.29 2.37 1.30 141
Class N (commenced operations on October 1, 2007)
2010* 1.09% 1.91% 1.10% 41%
2009 1.09 1.46 1.10 94
2008 1.53 2.22 1.54 141
Corporate Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2010* 0.74% 3.36% 0.75% 14%
2009 0.74 3.88 0.75 30
2008 0.73 4.25 0.74 12
2007 0.74 4.39 0.75 30
2006 0.75 4.14 0.75 25
2005 0.75 3.80 0.76 25
Class N (commenced operations on April 13, 2000)
2010* 0.99% 3.10% 1.00% 14%
2009 0.99 3.59 1.00 30
2008 0.98 4.02 0.99 12
2007 0.99 4.13 1.00 30
2006 1.00 3.88 1.00 25
2005 1.00 3.55 1.01 25
Government Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2010* 0.70% 2.59% 0.77% 59%
2009 0.70 3.29 0.77 85
2008 0.70 4.05 0.77 36
2007 0.70 4.50 0.77 83
2006 0.70 4.04 0.78 62
2005 0.70 2.98 0.79 58
Class N (commenced operations on April 13, 2000)
2010* 0.95% 2.34% 1.02% 59%
2009 0.95 3.04 1.02 85
2008 0.95 3.80 1.02 36
2007 0.95 4.25 1.02 83
2006 0.95 3.81 1.03 62
2005 0.95 2.70 1.04 58
California Tax Exempt Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2010* 0.50% 3.05% 0.62% 12%
2009 0.50 3.18 0.61 50
2008 0.50 3.13 0.61 55
2007 0.50 3.04 0.62 43
2006 0.50 2.85 0.62 43
2005 0.50 2.70 0.63 54
Class N (commenced operations on April 13, 2000)
2010* 0.75% 2.79% 0.87% 12%
2009 0.75 2.92 0.87 50
2008 0.75 2.87 0.86 55
2007 0.75 2.78 0.87 43
2006 0.75 2.59 0.87 43
2005 0.75 2.43 0.88 54
High Yield Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2010* 1.00% 9.14% 1.09% 48%
2009 1.00 9.75 1.10 59
2008 1.00 7.72 1.09 20
2007 1.00 7.73 1.10 26
2006 1.00 7.58 1.10 23
2005 1.00 7.71 1.11 46
Class N (commenced operations on January 14, 2000)
2010* 1.30% 8.93% 1.40% 48%
2009 1.30 9.43 1.40 59
2008 1.30 7.43 1.39 20
2007 1.30 7.44 1.40 26
2006 1.30 7.28 1.40 23
2005 1.30 7.41 1.41 46
* FOR THE SIX MONTHS ENDED MARCH 31, 2010.
+ PER SHARE CALCULATIONS ARE BASED ON THE AVERAGE SHARES OUTSTANDING
THROUGHOUT THE PERIOD.
++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE
WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT
A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
(1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 53
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEAR OR PERIOD ENDED
SEPTEMBER 30,
RATIO
OF EXPENSES
RATIO TO AVERAGE
NET NET NET OF NET NET ASSETS
ASSET DIVIDENDS ASSET ASSETS RATIO INVESTMENT (EXCLUDING
VALUE NET FROM NET VALUE END OF EXPENSES INCOME WAIVERS &
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE RECOVERED
OF PERIOD INCOME INCOME OF PERIOD RETURN++ (000) NET ASSETS(1)(2) NET ASSETS(1) FEES)(1)
--------- ---------- ---------- --------- -------- ---------- ----------------- ------------- -----------
Prime Money Market Fund
Institutional Class (commenced operations on March 23, 1998)
2010* $1.00 $0.001 $(0.001)** $1.00 0.06% $ 498,512 0.19% 0.10% 0.60%
2009 1.00 0.005 (0.005) 1.00 0.46 543,326 0.44 0.46 0.65
2008 1.00 0.030 (0.030) 1.00 3.01 532,931 0.58 2.90 0.58
2007 1.00 0.047 (0.047) 1.00 4.85 438,639 0.59 4.74 0.60
2006 1.00 0.041 (0.041) 1.00 4.17 388,171 0.59 4.12 0.60
2005 1.00 0.021 (0.021) 1.00 2.10 332,393 0.60 2.05 0.61
Class N (commenced operations on October 18, 1999)
2010* $1.00 $0.000 $(0.000)** $1.00 0.04% $ 500,784 0.24% 0.05% 1.10%
2009 1.00 0.003 (0.003) 1.00 0.33 656,769 0.61 0.39 1.15
2008 1.00 0.027 (0.027) 1.00 2.78 1,123,900 0.80 2.65 1.08
2007 1.00 0.045 (0.045) 1.00 4.62 870,537 0.81 4.52 1.10
2006 1.00 0.039 (0.039) 1.00 3.94 640,366 0.81 3.95 1.10
2005 1.00 0.019 (0.019) 1.00 1.87 312,452 0.82 1.94 1.11
Class S (commenced operations on October 26, 1999)
2010* $1.00 $0.000 $(0.000)** $1.00 0.03% $ 353,914 0.26% 0.03% 1.10%
2009 1.00 0.002 (0.002) 1.00 0.23 372,762 0.73 0.28 1.15
2008 1.00 0.025 (0.025) 1.00 2.57 633,815 1.00 2.54 1.08
2007 1.00 0.043 (0.043) 1.00 4.41 620,195 1.01 4.32 1.10
2006 1.00 0.037 (0.037) 1.00 3.73 324,353 1.01 3.74 1.10
2005 1.00 0.017 (0.017) 1.00 1.67 203,502 1.02 1.70 1.11
Government Money Market Fund
Institutional Class (commenced operations on April 3, 2000)
2010* $1.00 $0.000 $(0.000) $1.00 0.02% $ 94,890 0.14% 0.05% 0.61%
2009 1.00 0.003 (0.003) 1.00 0.27 123,863 0.36 0.26 0.65
2008 1.00 0.027 (0.027) 1.00 2.72 100,674 0.59 2.62 0.59
2007 1.00 0.047 (0.047) 1.00 4.77 47,858 0.60 4.67 0.61
2006 1.00 0.040 (0.040) 1.00 4.08 52,782 0.60 4.11 0.61
2005 1.00 0.020 (0.020) 1.00 2.05 32,039 0.61 1.97 0.62
Class N (commenced operations on June 21, 1999)
2010* $1.00 $0.000 $(0.000) $1.00 0.01% $2,490,107 0.16% 0.03% 1.11%
2009 1.00 0.002 (0.002) 1.00 0.19 2,549,147 0.47 0.21 1.13
2008 1.00 0.025 (0.025) 1.00 2.49 3,006,935 0.81 2.40 1.09
2007 1.00 0.044 (0.044) 1.00 4.54 2,291,138 0.82 4.45 1.11
2006 1.00 0.038 (0.038) 1.00 3.86 1,940,602 0.82 3.78 1.11
2005 1.00 0.018 (0.018) 1.00 1.82 1,895,412 0.83 1.80 1.12
Class S (commenced operations on October 6, 1999)
2010* $1.00 $0.000 $(0.000) $1.00 0.00% $ 268,162 0.18% 0.01% 1.11%
2009 1.00 0.001 (0.001) 1.00 0.12 298,842 0.54 0.13 1.13
2008 1.00 0.023 (0.023) 1.00 2.29 408,747 1.02 2.23 1.09
2007 1.00 0.042 (0.042) 1.00 4.33 321,061 1.02 4.24 1.11
2006 1.00 0.036 (0.036) 1.00 3.65 232,083 1.02 3.60 1.11
2005 1.00 0.016 (0.016) 1.00 1.62 227,905 1.03 1.61 1.12
California Tax Exempt Money Market Fund
Institutional Class (commenced operations on April 3, 2000)
2010* $1.00 $0.000 $(0.000)** $1.00 0.03% $ 140,464 0.17% 0.05% 0.62%
2009 1.00 0.003 (0.003) 1.00 0.33 141,579 0.30 0.31 0.65
2008 1.00 0.018 (0.018) 1.00 1.80 157,427 0.55 1.69 0.61
2007 1.00 0.030 (0.030) 1.00 3.01 89,237 0.55 2.97 0.62
2006 1.00 0.026 (0.026) 1.00 2.62 85,014 0.55 2.60 0.62
2005 1.00 0.015 (0.015)** 1.00 1.51 73,211 0.55 1.46 0.63
Class N (commenced operations on June 21, 1999)
2010* $1.00 $0.000 $(0.000)** $1.00 0.02% $ 723,184 0.18% 0.03% 1.12%
2009 1.00 0.002 (0.002) 1.00 0.23 704,840 0.41 0.25 1.16
2008 1.00 0.016 (0.016) 1.00 1.57 880,794 0.78 1.47 1.11
2007 1.00 0.027 (0.027) 1.00 2.78 695,318 0.78 2.73 1.12
2006 1.00 0.024 (0.024) 1.00 2.39 631,478 0.78 2.36 1.12
2005 1.00 0.013 (0.013)** 1.00 1.28 569,671 0.78 1.25 1.13
Class S (commenced operations on November 12, 1999)
2010* $1.00 $0.000 $(0.000)** $1.00 0.01% $ 57,773 0.21% 0.01% 1.12%
2009 1.00 0.002 (0.002) 1.00 0.17 74,396 0.54 0.26 1.16
2008 1.00 0.014 (0.014) 1.00 1.37 141,757 0.98 1.40 1.11
2007 1.00 0.025 (0.025) 1.00 2.57 178,918 0.98 2.55 1.12
2006 1.00 0.022 (0.022) 1.00 2.18 107,131 0.98 2.17 1.12
2005 1.00 0.011 (0.011)** 1.00 1.08 88,182 0.98 1.09 1.13
* FOR THE SIX MONTHS ENDED MARCH 31, 2010.
** INCLUDES A REALIZED CAPITAL GAIN DISTRIBUTION OF LESS THAN $0.001.
++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE
WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT
A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
(1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 54
notes to financial statements
MARCH 31, 2010 (UNAUDITED)
1. ORGANIZATION:
CNI Charter Funds, a Delaware statutory trust (the "Trust"), is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company with 16 portfolios. The financial statements included herein
are those of the Large Cap Value Equity Fund, Large Cap Growth Equity Fund, RCB
Small Cap Value Fund, Opportunistic Value Fund (collectively, the "Equity
Funds"); Corporate Bond Fund, Government Bond Fund, California Tax Exempt Bond
Fund, High Yield Bond Fund (collectively, the "Fixed Income Funds"); Prime Money
Market Fund, Government Money Market Fund, California Tax Exempt Money Market
Fund (collectively, the "Money Market Funds"); and Multi-Asset Fund (each a
"Fund," collectively, the "Funds").The Equity and Fixed Income Funds and the
Multi-Asset Fund are registered to offer Institutional and Class N Shares; in
addition, the Opportunistic Value Fund is registered to offer Class E Shares and
the RCB Small Cap Value Fund is registered to offer Class R Shares. The Money
Market Funds are registered to offer Institutional, Class N and Class S Shares.
The assets of each Fund are segregated, and a shareholder's interest is limited
to the Fund in which shares are held. The Funds' prospectuses provide
descriptions of each Fund's investment objectives, policies and strategies.
Effective March 15, 2010, the Opportunistic Value Fund was closed to new
shareholders.
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
U.S. generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
SECURITY VALUATION - Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available (except
for securities traded on NASDAQ) are valued at the last quoted sale price on the
primary exchange or market (foreign or domestic) on which they are traded, or,
if there is no such reported sale, at the most recent quoted bid price. For
securities traded on NASDAQ, the NASDAQ Official Closing Price is used. If
available, debt securities are priced based upon valuations provided by
independent, third-party pricing agents. Such values generally reflect the last
reported sales price if the security is actively traded. The third-party pricing
agents may also value debt securities at an evaluated bid price by employing
methodologies that utilize actual market transactions, broker-supplied
valuations, or other methodologies designed to identify the market value for
such securities. Debt obligations, 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 Fund's 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 Funds' Board of
Trustees. The Funds' Fair Value Procedures are implemented through a Fair Value
Committee (the "Committee") designated by the Funds' Board of Trustees. Some of
the more common reasons that may necessitate that a security be valued using
Fair Value Procedures include: the security's trading has been halted or
suspended; the security has been de-listed from a national exchange; the
security's primary trading market is temporarily closed at a time when under
normal conditions it would be open; for international securities, market events
occur after the close of the foreign markets that make closing prices not
representative of fair value; or the security's primary pricing source is not
able or willing to provide a price. When a security is valued in accordance with
the Fair Value Procedures, the Committee will determine the value after taking
into consideration relevant information reasonably available to the Committee.
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
market participants at the measurement date (an exit price). Accordingly, the
fair value hierarchy gives the highest priority to quoted prices (unadjusted) in
active markets for identical assets or liabilities (Level 1) and the lowest
priority to unobservable inputs (Level 3).The three levels of the fair value
hierarchy under ASC 820 are described below:
- Level 1 - Unadjusted quoted prices in active markets for identical,
unrestricted assets or liabilities that the Funds have the ability
to access at the measurement date;
- Level 2 - Quoted prices which are not active, or inputs that are
observable (either directly or indirectly) for substantially the
full term of the asset or liability; and
CNI CHARTER FUNDS | PAGE 55
notes to financial statements
MARCH 31, 2010 (UNAUDITED)
- 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, which approximates the
effective interest method over the holding period of a security, except for the
Money Market funds which use a straight line basis.
REPURCHASE AGREEMENTS - Securities pledged as collateral for repurchase
agreements are held by each Fund's custodian bank, U.S. Bank, N.A., until
maturity of the repurchase agreements. Provisions of the agreements and
procedures adopted by the investment adviser require that the market value of
the collateral, including accrued interest thereon, is sufficient in the event
of default by the counterparty. The Funds also invest in tri-party repurchase
agreements. Securities held as collateral for tri-party repurchase agreements
are maintained by the broker's custodian bank in a segregated account until
maturity of the repurchase agreement. Provisions of the agreements require that
the market value of the collateral, including accrued interest thereon, is
sufficient in the event of default. If the counterparty defaults and the value
of the collateral declines or if the counterparty enters into an insolvency
proceeding, realization of the collateral by the Fund may be delayed or limited.
TBA TRANSACTIONS - The Funds may engage in "to be announced" ("TBA") security
transactions. Such transactions involve a commitment by the Funds to purchase or
sell securities for a predetermined price or yield, with payment and delivery
taking place beyond the customary settlement period. The Funds record TBA
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payments for the securities
purchased.
EXPENSE ALLOCATION - Common expenses incurred by the Funds are allocated among
the Funds (i) based upon relative average daily net assets, (ii) as incurred on
a specific identification basis, or (iii) equally among the Funds, depending on
the nature of the expenditure.
CLASSES - Class-specific expenses are borne by that class. Income, non
class-specific expenses, and realized and unrealized gains/losses are allocated
to the respective class on the basis of relative net asset value each day.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment
income are declared daily and paid to shareholders monthly for the Fixed Income
and Money Market Funds. Dividends from net investment income are declared and
paid quarterly for the Large Cap Value Equity, Large Cap Growth Equity,
Opportunistic Value and Multi-Asset Funds. For the RCB Small Cap Value Fund,
dividends from net investment income are declared and paid annually.
Distributions from net realized capital gains are distributed to shareholders at
least annually.
3. ADMINISTRATION, TRANSFER AGENT, DISTRIBUTION AND SHAREHOLDER SERVICES
AGREEMENTS:
Pursuant to an administration agreement dated April 1, 1999, as amended April 1,
2008 (the "Agreement"), SEI Investments Global Funds Services (the
"Administrator"), a wholly owned subsidiary of SEI Investments Company, acts as
the Trust's administrator. Under the terms of the Agreement, the Administrator
is entitled to receive an annual fee of 0.065% of aggregate average daily net
assets of the Trust not exceeding $2.5 billion, 0.045% of aggregate average
daily net assets of the Trust exceeding $2.5 billion but not exceeding $5
billion, 0.025% of aggregate average daily net assets of the Trust exceeding $5
billion but not exceeding $7.5 billion, and 0.02% of aggregate average daily net
assets of the Trust exceeding $7.5 billion. Each Fund is subject to a minimum
annual fee of $90,000, which may be reduced at the sole discretion of the
Administrator.
The Trust has adopted a Rule 12b-1 Distribution Plan ("the Plan") with respect
to Class N, Class S and Class R Shares that allows each Fund to pay distribution
and servicing fees. SEI Investments Distribution Co. (the "Distributor")
receives a distribution fee, computed daily and paid monthly, at the annual rate
of 0.50% of the average daily net assets of the Class N Shares and Class S
Shares of the Money Market Funds and 0.25% of the Class N Shares of the Equity
Funds, Fixed Income Funds and the Multi-Asset Fund and the Class R Shares of the
RCB Small Cap Value Fund, with the exception of 0.30% charged to the Class N
Shares of the High Yield Bond Fund, which may be used by the Distributor to
provide compensation for sales support and distribution-related activities.
CNI CHARTER FUNDS | PAGE 56
Effective October 1, 2009, the RCB Small Cap Equity Fund Class R shares began
waiving 0.14% in 12b-1 fees.
The Trust and the Distributor are parties to a distribution agreement dated
April 1, 1999.
SEI Institutional Transfer Agency, a division of SEI Investments Fund Management
Corporation (the "Transfer Agent"), serves as transfer agent for the Trust and
provides services at an annual rate of $15,000 per share class. The Transfer
Agent has agreed to waive these fees. The Class R shares of the RCB Small Cap
Value Fund began paying the sub-transfer agent, Citigroup Fund Services, LLC,
fees commencing February 1, 2008.
The Trust has entered into Shareholder Servicing Agreements that permit payment
of compensation to City National Bank ("CNB") and its affiliates which provide
certain shareholder support for their customers who own Institutional Class,
Class N, Class S or Class R Shares. In consideration for such services, a
shareholder servicing fee is charged at the annual rate of up to 0.25% of each
Fund's average daily net assets. CNB has agreed to voluntarily waive portions of
its shareholder servicing fees with respect to certain Funds. For the six months
ended March 31, 2010, CNB received Shareholder Servicing fees from the Trust in
the amount of $5,860,699.
Certain officers of the Trust are also officers of City National Asset
Management, Inc. ("CNAM, Inc." or the "Adviser") or the Administrator. Such
officers are paid no fees by the Trust for serving as officers of the Trust.
4. INVESTMENT ADVISORY FEES AND OTHER AGREEMENTS:
CNAM, Inc., a wholly owned subsidiary of CNB, serves as the investment manager
for the Funds. Under the terms of the current agreement, the Adviser receives an
annual fee equal to 0.62% of the average daily net assets of the Large Cap Value
Equity Fund, 0.65% of the average daily net assets of the Large Cap Growth
Equity Fund, 0.85% of the average net assets of the RCB Small Cap Value Fund,
0.50% of the average daily net assets of the Opportunistic Value Fund, 0.50% of
the average daily net assets of the Multi-Asset Fund, 0.40% of the average daily
net assets of the Corporate Bond Fund, 0.43% of the average daily net assets of
the Government Bond Fund, 0.27% of the average daily net assets of the
California Tax Exempt Bond Fund, 0.75% of the average daily net assets of the
High Yield Bond Fund, 0.25% of the average daily net assets of the Prime Money
Market Fund, 0.26% of the average daily net assets of the Government Money
Market Fund, and 0.27% of the average daily net assets of the California Tax
Exempt Money Market Fund.
REED, CONNER & BIRDWELL, LLC acts as the investment sub-adviser with respect to
the RCB Small Cap Value Fund.
GUGGENHEIM INVESTMENT MANAGEMENT, LLC acts as the investment sub-adviser with
respect to the High Yield Bond Fund.
SKBA CAPITAL MANAGEMENT, LLC acts as the investment sub-adviser with respect to
the Opportunistic Value Fund.
Sub-adviser fees are paid by the Adviser.
The Adviser has voluntarily agreed to limit its fees or reimburse expenses to
the extent necessary to keep operating expenses at or below certain percentages
of the Funds' respective average daily net assets. In the case of the RCB Small
Cap Value Fund and the Opportunistic Value Fund, the Fund's sub-adviser has
contractually agreed to limit its fees or reimburse expenses to meet the expense
limitations. The expense limitations (expressed as percentages of average daily
net assets) are as follows:
Large Cap Large Cap RCB
Value Growth Small Cap Opportunistic
Equity Equity Value Value
Fund Fund Fund Fund
--------- --------- --------- -------------
Institutional Class 1.00% 1.05% 1.24% 1.00%
Class N 1.25% 1.30% 1.49% 1.25%
Class E -- -- -- 0.75%
Class R -- -- 1.49% --
California
Multi- Corporate Government Tax Exempt
Asset Bond Bond Bond
Fund Fund Fund Fund
------ --------- ---------- ----------
Institutional Class 1.75% 0.75% 0.70% 0.50%
Class N 2.00% 1.00% 0.95% 0.75%
California
High Yield Prime Government Tax Exempt
Bond Money Market Money Market Money Market
Fund Fund Fund Fund
---------- ------------ ------------ ------------
Institutional Class 1.00% 0.63% 0.63% 0.55%
Class N 1.30% 0.85% 0.85% 0.78%
Class S -- 1.05% 1.05% 0.98%
Any fee reductions or expense reimbursements may be repaid to the Adviser (or
relevant sub-adviser, as applicable) within three years after occurrence,
subject to certain restrictions and only if such repayments do not cause the
Funds' expense ratios, at the time of repayment, to exceed the amounts shown in
the preceding table.
During the six months ended March 31, 2010, the Board of Trustees approved the
reimbursement of previously waived fees by the Adviser in the amount of $1,690
in the Corporate Bond Fund.
As of March 31, 2010, fees which were previously waived by the Adviser (or
relevant sub-adviser, as applicable) which may be subject to possible future
reimbursement to the Adviser (or relevant sub-adviser, as applicable) were as
follows:
CNI CHARTER FUNDS | PAGE 57
notes to financial statements
MARCH 31, 2010 (UNAUDITED)
Potential Amount of
Fund Recovery (000) Expiration
- --------------------------------- ------------------- ----------
Government Bond $ 17 2010
39 2011
49 2012
40 2013
California Tax Exempt Bond 18 2010
34 2011
39 2012
22 2013
High Yield Bond 17 2010
29 2011
25 2012
16 2013
Prime Money Market 880 2012
1,022 2013
Government Money Market 2,210 2012
2,979 2013
California Tax Exempt Money Market 235 2010
583 2011
1,568 2012
933 2013
The Adviser, Administrator and Distributor have voluntarily agreed to further
waive and reduce their fees and/or reimburse certain expenses of the Money
Market Funds in order to maintain a one-day net income yield (yield floor) of
each Fund of not less than 0.01% of the Fund's average daily net assets. The
following table shows waivers, with respect to such yield floor, by class for
the six months ended March 31, 2010:
Shareholder Investment Administration
Servicing Fee Advisor Fee Fee
Waiver Waiver Waiver
(000) (000) (000)
------------- ----------- --------------
Prime Money Market
Institutional Class $ 659 $ 374 $ 20
Class N 1,245 397 21
Class S 1,099 251 13
Government Money Market
Institutional Class 123 100 4
Class N 5,976 2,578 94
Class S 962 300 11
California Tax Exempt Money Market
Institutional Class 189 96 6
Class N 1,769 497 29
Class S 194 38 2
5. INVESTMENT TRANSACTIONS:
The cost of security purchases and proceeds from the sale and maturities of
securities, other than temporary investments in short-term securities for the
six months ended March 31, 2010, were as follows for the Equity Funds,
Multi-Asset Fund and Fixed Income Funds:
Purchases Sales and Maturities
-------------------- --------------------
U.S. Gov`t Other U.S. Gov`t Other
Fund (000) (000) (000) (000)
- -------------------------- ---------- -------- ---------- --------
Large Cap Value Equity $ -- $ 16,066 $ -- $ 13,084
Large Cap Growth Equity -- 4,610 -- 8,885
RCB Small Cap Value -- 5,340 -- 5,865
Opportunistic Value -- 3,168 -- 13,678
Multi-Asset -- 12,185* -- 9,150*
Corporate Bond -- 23,869 706 12,160
Government Bond 107,278 7,234 59,391 --
California Tax Exempt Bond -- 4,870 -- 4,686
High Yield Bond -- 23,292 -- 17,277
* INCLUDES $1,304(000) AND $480(000) OF PURCHASES AND SALES, RESPECTIVELY,
OF AFFILIATED REGISTERED INVESTMENT COMPANIES.
6. FEDERAL TAX INFORMATION:
It is each Fund's intention to continue to qualify as a regulated investment
company for Federal income tax purposes and distribute all of its taxable income
and net capital gains. Accordingly, no provisions for Federal income taxes are
required.
Management has analyzed the Funds' tax position taken on federal income tax
returns for all open tax years and has concluded that as of March 31, 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 of America. As a result, net investment income (loss) and net
realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during such period. These book/tax
differences may be temporary or permanent. To the extent these differences are
permanent in nature, they are charged or credited to undistributed net
investment income (loss), accumulated net realized gain (loss), or paid-in
capital, as appropriate, in the period that the differences arise. Accordingly,
the following permanent differences, primarily attributable to REIT adjustments,
corporate action adjustments, realized gains (losses) on paydowns and timing of
distributions and investments in partnerships, were reclassified to/from the
following accounts as of September 30, 2009:
CNI CHARTER FUNDS | PAGE 58
Increase Increase
(Decrease) (Decrease)
Undistributed Accumulated
Net Investment Net Realized
Income (Loss) Gain (Loss)
Fund (000) (000)
- ----------------------- -------------- ------------
RCB Small Cap Value $ 22 $ (22)
Multi-Asset 10 (10)
Corporate Bond (1) 1
Government Bond 30 (30)
Prime Money Market 87 (87)
Government Money Market 16 (16)
These reclassifications had no effect on net assets or net asset value per
share.
The tax character of dividends and distributions declared during the years ended
September 30, 2009, and September 30, 2008, are shown below:
Tax
Exempt Ordinary Long-term
Income Income Capital Gain Total
Fund (000) (000) (000) (000)
- -------------------------- -------- -------- ------------ --------
Large Cap Value Equity
2009 $ -- $ 1,495 $ -- $ 1,495
2008 -- 1,828 5,488 7,316
Large Cap Growth Equity
2009 -- 222 -- 222
2008 -- 152 -- 152
RCB Small Cap Value
2009 -- 439 -- 439
2008 -- 3,067 6,538 9,605
Opportunistic Value
2009 -- 503 -- 503
2008 -- -- -- --
Multi-Asset
2009 -- 375 -- 375
2008 -- 473 -- 473
Corporate Bond
2009 -- 2,952 -- 2,952
2008 -- 2,888 -- 2,888
Government Bond
2009 -- 2,435 -- 2,435
2008 -- 2,639 -- 2,639
California Tax Exempt Bond
2009 1,151 -- -- 1,151
2008 1,063 -- -- 1,063
High Yield Bond
2009 -- 2,755 -- 2,755
2008 -- 2,806 -- 2,806
Prime Money Market
2009 -- 7,503 -- 7,503
2008 -- 61,899 -- 61,899
Government Money Market
2009 -- 6,635 -- 6,635
2008 -- 73,655 -- 73,655
California Tax Exempt
Money Market
2009 2,953 -- -- 2,953
2008 17,064 11 -- 17,075
During the year ended September 30, 2009, the following Fund utilized capital
loss carryforwards to offset capital gains amounting to:
Amount
Fund (000)
- -------------------------- ------
Government Bond $ 422
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.
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
Equity and Fixed Income Funds and Multi-Asset Fund were as follows:
Aggregate Aggregate Net
Gross Gross Unrealized
Federal Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
Fund (000) (000) (000) (000)
- -------------------------- ---------- ------------ ------------ --------------
Large Cap Value Equity $ 99,069 $ 11,755 $ (7,949) $ 3,806
Large Cap Growth Equity 32,116 6,322 (1,699) 4,623
RCB Small Cap Value 19,707 7,417 (1,842) 5,575
Opportunistic Value 11,628 5,666 (55) 5,611
Multi Asset 27,123 2,016 (375) 1,641
Corporate Bond 96,690 3,898 (56) 3,842
Government Bond 153,646 1,019 (421) 598
California Tax Exempt Bond 38,698 890 (77) 813
High Yield Bond 48,879 1,985 (1,784) 201
At March 31, 2010, the Money Market Funds' cost of securities for Federal income
tax purposes approximates the cost disclosed in the Schedule of Investments.
CNI CHARTER FUNDS | PAGE 59
notes to financial statements
MARCH 31, 2010 (UNAUDITED)
As of September 30, 2009, the components of Distributable Earnings/(Accumulated
Losses) on a tax basis were as follows:
Undistributed Undistributed Capital Unrealized Other Total
Tax-Exempt Ordinary Loss Post-October Appreciation Temporary Distributable Earnings
Income Income Carryforwards Losses (Depreciation) Differences (Accumulated Losses)
Fund (000) (000) (000) (000) (000) (000) (000)
- ----------------- ------------- ------------- ------------- ------------ -------------- ----------- ----------------------
Large Cap Value
Equity $ -- $ 322 $ (2,810) $ (7,763) $ (3,800) $ (321) $ (14,372)
Large Cap Growth
Equity -- 37 (2,607) (1,454) 673 (37) (3,388)
RCB Small Cap
Value -- 14 (589) (8,608) 3,746 -- (5,437)
Opportunistic
Value -- 72 (2,050) (15,678) 7,145 (72) (10,583)
Multi-Asset -- 74 (2,309) (1,645) 876 (63) (3,067)
Corporate Bond -- 256 (541) (675) 3,654 (256) 2,438
Government Bond -- 167 (113) -- 1,236 (167) 1,123
California Tax
Exempt Bond 100 -- (186) -- 1,432 (100) 1,245
High Yield Bond -- 264 (1,621) (2,936) (2,057) (264) (6,614)
Prime Money
Market -- 321 -- -- -- (117) 204
Government Money
Market -- 92 -- -- -- (71) 21
California Tax
Exempt Money
Market 32 -- -- -- -- (31) 1
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:
Expiring September 30,
---------------------------------------------------------------------------
2010 2011 2012 2014 2015 2016 2017
Fund (000) (000) (000) (000) (000) (000) (000)
- -------------------------- -------- -------- ------- -------- -------- ------- --------
Large Cap Value Equity $ -- $ -- $ -- $ -- $ -- $ -- $ 2,810
Large Cap Growth Equity 82 1,844 227 -- -- -- 454
RCB Small Cap Value -- -- -- -- -- -- 589
Opportunistic Value -- -- -- -- -- -- 2,050
Multi-Asset -- -- -- -- -- -- 2,309
Corporate Bond -- -- -- 64 271 116 90
Government Bond -- -- -- -- 12 101 --
California Tax Exempt Bond -- -- -- -- 34 7 145
High Yield Bond -- 521 -- 268 -- -- 832
7. CONCENTRATION OF CREDIT RISK
In the normal course of business, the Funds enter into contracts that provide
general indemnifications.The Funds' maximum exposure under these arrangements is
dependent on future claims that may be made against the Funds and, therefore,
cannot be established; however, based on experience, the risk of loss from such
claim is considered remote.
The Multi-Asset Fund may invest in exchange-traded notes ("ETNs") as a
non-principal investment strategy. ETNs are unsecured debt obligations of
investment banks which are traded on exchanges and the returns of which are
linked to the performance of market indexes. In addition to trading ETNs on
exchanges, investors may redeem ETNs directly with the issuer on a weekly basis,
typically in a minimum amount of 50,000 units, or hold the ETNs until maturity.
ETNs are riskier than ordinary unsecured debt securities and have no principal
protection.The Fund will generally invest in ETNs which are linked to
commodities indexes.The Fund's investment in an ETN may be influenced by many
unpredictable factors, including highly volatile commodities prices, changes in
supply and demand relationships, weather, agriculture, trade, changes in
interest rates, and monetary and other governmental policies, action and
inaction. Investing in ETNs is not equivalent to investing directly in index
components or the relevant index itself. Because ETNs are debt securities, they
possess credit risk; if the issuer has financial difficulties or goes bankrupt,
the investor may not receive the return it was promised.
CALIFORNIA TAX EXEMPT FUNDS - SPECIFIC RISKS
The ability of issuers to pay interest on, and repay principal of, California
municipal securities may be affected by economic and political developments in
the State of California.
Certain securities are backed by letters of credit from various financial
institutions and financial guaranty assurance agencies. These letters of credit
enhance the credit quality of the individual securities; however, if any of the
financial institutions or financial guaranty assurance agencies' credit quality
should deteriorate, it could cause the individual security's credit quality to
change. Additionally, if any of the Funds concentrate their letters of credit in
any one financial institution, the risk of credit quality deterioration
increases.
CNI CHARTER FUNDS | PAGE 60
8. CAPITAL SHARES ISSUED AND REDEEMED:
Capital share activity for the six months ended March 31, 2010 (Unaudited) and
the year ended September 30, 2009, were as follows:
Large Cap Value Large Cap Growth RCB Small Cap Opportunistic
Equity Fund (000) Equity Fund (000) Value Fund (000) Value Fund (000)
----------------- ------------------- ------------------ ------------------
2010 2009 2010 2009 2010 2009 2010 2009
------- ------- -------- -------- ------- ------- ------- --------
CAPITAL SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS:
Shares issued 1,438 3,207 324 1,140 25 54 1 24
Shares issued in Lieu of
Dividends and Distributions 52 150 3 9 -- 3 -- --
Shares redeemed (1,000) (2,904) (807) (1,395) (14) (37) (24) --
------- ------- -------- -------- ------- ------- ------- --------
Net Institutional
Class transactions 490 453 (480) (246) 11 20 (23) 24
======= ======= ======== ======== ======= ======= ======= ========
CLASS N:
Shares issued 138 86 57 92 11 1 4 1
Shares issued in Lieu of
Dividends and Distributions 5 15 1 4 -- 4 -- --
Shares redeemed (38) (291) (98) (346) (10) (36) (2) --
------- ------- -------- -------- ------- ------- ------- --------
Net Class N transactions 105 (190) (40) (250) 1 (31) 2 1
======= ======= ======== ======== ======= ======= ======= ========
CLASS R:
Shares issued -- -- -- -- 23 79 -- --
Shares issued in Lieu of
Dividends and Distributions -- -- -- -- 1 28 -- --
Shares redeemed -- -- -- -- (89) (372) -- --
------- ------- -------- -------- ------- ------- ------- --------
Net Class R transactions -- -- -- -- (65) (265) -- --
======= ======= ======== ======== ======= ======= ======= ========
CLASS E:
Shares issued -- -- -- -- -- -- -- 3,743
Shares issued in Lieu of
Dividends and Distributions -- -- -- -- -- -- 11 93
Shares redeemed -- -- -- -- -- -- (1,653) (4,671)
------- ------- -------- -------- ------- ------- ------- --------
Net Class E transactions -- -- -- -- -- -- (1,642) (835)
======= ======= ======== ======== ======= ======= ======= ========
California
Multi-Asset Corporate Bond Government Bond Tax Exempt Bond
Fund (000) Fund (000) Fund (000) Fund (000)
----------------- ------------------- ------------------ ------------------
2010 2009 2010 2009 2010 2009 2010 2009
------- ------- -------- -------- ------- ------- ------- --------
CAPITAL SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS:
Shares issued 113 481 1,750 2,736 9,282 2,172 414 1,204
Shares issued in Lieu of
Dividends and Distributions 8 10 40 67 89 65 24 39
Shares redeemed (105) (744) (749) (1,529) (1,769) (1,789) (466) (998)
------- ------- -------- -------- ------- ------- ------- --------
Net Institutional
Class transactions 16 (253) 1,041 1,274 7,602 448 (28) 245
======= ======= ======== ======== ======= ======= ======= ========
CLASS N:
Shares issued 393 359 52 48 71 101 80 132
Shares issued in Lieu of
Dividends and Distributions 9 12 1 2 1
Shares redeemed (141) (387) (5) (17) (13) (77) (76) (58)
------- ------- -------- -------- ------- ------- ------- --------
Net Class N transactions 261 (16) 48 32 60 28 5 75
======= ======= ======== ======== ======= ======= ======= ========
AMOUNTS DESIGNATED AS "--" ARE EITHER TO 0 OR HAVE BEEN ROUNDED TO 0.
CNI CHARTER FUNDS | PAGE 61
notes to financial statements
MARCH 31, 2010 (UNAUDITED)
8. CAPITAL SHARES ISSUED AND REDEEMED (CONTINUED):
California
High-Yield Prime Government Tax Exempt
Bond Money Market Money Market Money Market
Fund (000) Fund (000) Fund (000) Fund (000)
----------------- ---------------------- ---------------------- ----------------------
2010 2009 2010 2009 2010 2009 2010 2009
------- ------- --------- ---------- ---------- ---------- -------- -----------
CAPITAL SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS:
Shares issued 1,392 307 689,562 1,288,265 223,814 655,511 529,058 1,126,167
Shares issued in Lieu of
Dividends and Distributions 70 130 53 442 1 8 -- --
Shares redeemed (647) (156) (734,370) (1,278,342) (252,788) (632,330) (530,173) (1,142,015)
------- ------- --------- ---------- ---------- ---------- -------- -----------
Net Institutional
Class transactions 815 281 (44,755) 10,365 (28,973) 23,189 (1,115) (15,848)
======= ======= ========= ========== ========== ========== ======== ===========
CLASS N:
Shares issued 293 405 669,844 2,117,635 2,139,407 4,478,647 612,913 1,708,583
Shares issued in Lieu of
Dividends and Distributions 78 158 128 1,555 304 4,161 114 1,814
Shares redeemed (169) (334) (825,887) (2,586,377) (2,198,746) (4,940,602) (594,684) (1,886,349)
------- ------- --------- ---------- ---------- ---------- -------- -----------
Net Class N transactions 202 229 (155,915) (467,187) (59,035) (457,794) 18,343 (175,952)
======= ======= ========= ========== ========== ========== ======== ===========
CLASS S:
Shares issued -- -- 590,611 1,140,178 427,014 659,453 58,501 354,327
Shares issued in Lieu of
Dividends and Distributions -- -- -- -- -- -- -- --
Shares redeemed -- -- (609,419) (1,401,263) (457,694) (769,358) (75,125) (421,688)
------- ------- --------- ---------- ---------- ---------- -------- -----------
Net Class S transactions -- -- (18,808) (261,085) (30,680) (109,905) (16,624) (67,361)
======= ======= ========= ========== ========== ========== ======== ===========
AMOUNTS DESIGNATED AS "--" ARE EITHER 0 OR HAVE BEEN ROUNDED TO 0.
9. 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.
10. SUBSEQUENT EVENTS
The Trust has evaluated the need for additional disclosures and/or adjustments
resulting from subsequent events. Based on this evaluation, no adjustments were
required to the financial statements as of March 31, 2010. However, the
following are details related to an event that occurred after March 31, 2010.
At a meeting held on February 18, 2010 the Board ofTrustees voted to close the
Opportunistic Value Fund. The Fund was liquidated on April 30, 2010 and the
assets of the Fund were distributed to the shareholders.
Effective May 24, 2010, UMB Fund Services will replace Citigroup Fund Services,
LLC ("Citi") as sub-transfer agent for the Class R shares of the RCB Small
CapValue Fund. The fee arrangement for UMB will be identical to Citi's fee
arrangement with respect to the Fund.
CNI CHARTER FUNDS | PAGE 62
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*
----------- ---------- ------------ -----------
LARGE CAP VALUE FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,099.10 0.96% $ 5.02
Class N 1,000.00 1,098.00 1.21 6.33
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
LARGE CAP GROWTH FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,104.60 0.99% $ 5.19
Class N 1,000.00 1,103.00 1.24 6.50
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,020.00 0.99% $ 4.99
Class N 1,000.00 1,018.75 1.24 6.24
RCB SMALL CAP VALUE FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,145.70 1.19% $ 6.37
Class N 1,000.00 1,144.60 1.44 7.70
Class R 1,000.00 1,145.30 1.30 6.95
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,019.00 1.19% $ 5.99
Class N 1,000.00 1,017.75 1.44 7.24
Class R 1,000.00 1,018.45 1.30 6.54
OPPORTUNISTIC VALUE FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,126.50 0.85% $ 4.51
Class N 1,000.00 1,122.30 1.11 5.87
Class E 1,000.00 1,126.50 0.61 3.23
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,020.69 0.85% $ 4.28
Class N 1,000.00 1,019.40 1.11 5.59
Class E 1,000.00 1,021.89 0.61 3.07
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182/365 (to reflect
the one-half year period).
CNI CHARTER FUNDS | PAGE 63
disclosure of fund expenses (UNAUDITED) (CONCLUDED)
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/09 3/31/10 RATIOS PERIOD*
----------- ---------- ------------ -----------
MULTI-ASSET FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,039.80 0.84% $ 4.27
Class N 1,000.00 1,039.60 1.09 5.54
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,020.74 0.84% $ 4.23
Class N 1,000.00 1,019.50 1.09 5.49
CORPORATE BOND FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,021.60 0.74% $ 3.73
Class N 1,000.00 1,020.30 0.99 4.99
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,021.24 0.74% $ 3.73
Class N 1,000.00 1,020.00 0.99 4.99
GOVERNMENT BOND FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,008.30 0.70% $ 3.50
Class N 1,000.00 1,007.00 0.95 4.75
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,021.44 0.70% $ 3.53
Class N 1,000.00 1,020.19 0.95 4.78
CALIFORNIA TAX-EXEMPT BOND FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,003.80 0.50% $ 2.50
Class N 1,000.00 1,002.50 0.75 3.74
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,022.44 0.50% $ 2.52
Class N 1,000.00 1,021.19 0.75 3.78
HIGH YIELD BOND FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,125.50 1.00% $ 5.30
Class N 1,000.00 1,123.90 1.30 6.88
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,019.95 1.00% $ 5.04
Class N 1,000.00 1,018.45 1.30 6.54
PRIME MONEY FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,000.60 0.19% $ 0.95
Class N 1,000.00 1,000.40 0.24 1.20
Class S 1,000.00 1,000.30 0.26 1.30
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,023.98 0.19% $ 0.96
Class N 1,000.00 1,023.73 0.24 1.21
Class S 1,000.00 1,023.64 0.26 1.31
GOVERNMENT MONEY MARKET FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,000.20 0.14% $ 0.70
Class N 1,000.00 1,000.10 0.16 0.80
Class S 1,000.00 1,000.00 0.18 0.90
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,024.23 0.14% $ 0.71
Class N 1,000.00 1,024.13 0.16 0.81
Class S 1,000.00 1,024.03 0.18 0.91
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,000.30 0.17% $ 0.85
Class N 1,000.00 1,000.20 0.18 0.90
Class S 1,000.00 1,000.10 0.21 1.05
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,024.08 0.17% $ 0.86
Class N 1,000.00 1,024.03 0.18 0.91
Class S 1,000.00 1,023.88 0.21 1.06
* Expenses are equal to the Fund's annualized expense ratio multiplied by
the average account value over the period, multiplied by 182/365 (to
reflect the one-half year period).
CNI CHARTER FUNDS | PAGE 64
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) [GRAPHIC OMITTED - LATTER](R)
cnicharterfunds.com CNI-SA-004-0200
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.