<page>
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 811-06561
CCMI Funds
(Exact name of registrant as specified in charter)
431 N Pennsylvania St. Indianapolis, IN 46204
(Address of principal executive offices) (Zip code)
Timothy Ashburn
Unified Fund Services
431 N. Pennsylvania St
Indianapolis, IN 46204
(Name and address of agent for service)
Registrant's telephone number, including area code: 317-917-7000
Date of fiscal year end: 5/31
Date of reporting period: 11/30/03
Form N-CSR is to be used by management investment companies to
file reports with the Commission not later than 10 days after the
transmission to stockholders of any report that is required to be
transmitted to stockholders under Rule 30e-1 under the Investment
Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the
information provided on Form N-CSR in its regulatory, disclosure
review, inspection and policymaking roles.
A registrant is required to disclose the information specified by
Form N-CSR, and the Commission will make this information public. A
registrant is not required to respond to the collection of information
contained in Form N-CSR unless the Form displays a currently valid
Office of Management and Budget ("OMB") control number. Please direct
comments concerning the accuracy of the information collection burden
estimate and any suggestions for reducing the burden to Secretary,
Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. 3507.
Item 1. Reports to Stockholders.
<page>
[logo] CCMI FUNDS
CCMI BOND FUND
- ------------------------------
A Portfolio of CCMI Funds
Semi-Annual Report to Shareholders
November 30, 2003
Not FDIC Insured * May Lose Value * No Bank Guarantee
<page>
<table>
<s> <c> <c>
Principal CCMI Bond Fund
Amount Schedule of Investments - November 30, 2003 (Unaudited) Value
- ------------------ ---------------
- ----------------------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES--0.80%
Finance--Retail--0.80%
$ 1,000,000 Citibank Credit Card Issuance Trust, 4.15%, 7/7/2017 $ 921,835
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES (IDENTIFIED COST $893,642) 921,835
- ----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS--33.06%
Air Transportation--0.09%
111,000 United Parcel Service, Inc., Note, 5.25%, 9/15/2017 109,184
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Banking--5.58%
191,000 BT Capital Trust, Company Guarantee, Series B1, 7.90%, 1/15/2027 213,676
-----------------------------------------------------------------------------------------
500,000 Bank of America Corp., Sub. Note, Series NOTZ, 6.50%, 5/15/2017 509,229
-----------------------------------------------------------------------------------------
350,000 BankBoston Capital Trust, Company Guarantee, Series B, 8.25%, 12/15/2026 404,243
-----------------------------------------------------------------------------------------
1,000,000 Comerica Bank, Sub. Note, 8.375%, 7/15/2024 1,202,383
-----------------------------------------------------------------------------------------
100,000 Countrywide Home Loans, Inc., Company Guarantee, Series MTNJ, 7.00%, 7/27/2016 100,762
-----------------------------------------------------------------------------------------
188,000 NB Capital Trust II, Company Guarantee, 7.83%, 12/15/2026 212,823
-----------------------------------------------------------------------------------------
1,257,000 Peoples Bank Bridgeport, Sub. Note, 9.875%, 11/15/2010 1,508,332
-----------------------------------------------------------------------------------------
1,900,000 Regions Financial Corp., Sub. Note, 7.75%, 9/15/2024 2,292,473
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 6,443,921
- ----------------------------------------------------------------------------------------------------------------------------
Finance--Retail--1.85%
865,000 Commercial Credit Co., Note, 6.625%, 6/1/2015 960,982
-----------------------------------------------------------------------------------------
1,000,000 Household Finance Corp., Sr. Note, Series MTN, 2.10%, 2/28/2008 (a) 1,008,405
-----------------------------------------------------------------------------------------
166,000 Household Finance Corp., Sr. Note, Series NOT1, 7.50%, 4/15/2017 171,915
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 2,141,302
- ----------------------------------------------------------------------------------------------------------------------------
Financial Intermediaries--2.47%
500,000 Citigroup, Inc., Note., 6.50%, 1/18/2011 560,851
-----------------------------------------------------------------------------------------
250,000 Citigroup, Inc., Sub. Note, 7.25%, 10/1/2010 290,132
-----------------------------------------------------------------------------------------
1,000,000 Goldman Sachs Group, Inc., Note, 6.60%, 1/15/2012 1,111,614
-----------------------------------------------------------------------------------------
900,000 Lehman Brothers Holdings, Inc., Note, Series MTNG, 6.75%, 7/1/2022 888,073
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 2,850,670
- ----------------------------------------------------------------------------------------------------------------------------
Financial Services--6.05%
1,000,000 Beneficial Corp., Note, Series MTNE, 6.47%, 11/17/2008 1,104,063
-----------------------------------------------------------------------------------------
250,000 CIT Capital Trust I, Company Guarantee, 7.70%, 2/15/2027 268,480
-----------------------------------------------------------------------------------------
1,250,000 Credit Suisse First Boston USA, Inc., Note, 6.125%, 11/15/2011 1,354,797
-----------------------------------------------------------------------------------------
500,000 General Electric Capital Corp., Sr. Note, Series MTN, 5.10%, 4/25/2018 482,550
-----------------------------------------------------------------------------------------
800,000 JPM Capital Trust II, Bond, 7.95%, 2/1/2027 891,634
-----------------------------------------------------------------------------------------
1,000,000 Morgan Stanley, Note, 6.60%, 4/1/2012 1,115,570
-----------------------------------------------------------------------------------------
1,500,000 Morgan Stanley, Sr. Note, Series MTNC, 4.50%, 11/1/2013 (a) 1,488,480
-----------------------------------------------------------------------------------------
265,000 Morgan Stanley & Co., Inc., Deb., 7.50%, 2/1/2024 276,411
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 6,981,985
- ----------------------------------------------------------------------------------------------------------------------------
Food & Drug Manufacturers & Retailers--1.45%
1,000,000 Kraft Foods, Inc., Note, 5.25%, 10/1/2013 998,010
-----------------------------------------------------------------------------------------
700,000 McDonald's Corp., Note, Series MTNH, 5.20%, 8/1/2018 673,603
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Total 1,671,613
- ----------------------------------------------------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
<table>
<s> <c> <c>
Principal CCMI Bond Fund
Amount Schedule of Investments - November 30, 2003 (Unaudited) - continued Value
- ------------------ ---------------
CORPORATE BONDS--33.06% - continued
Industrial Products & Equipment--1.72%
$ 1,600,000 AutoZone, Inc., Sr. Note, 5.875%, 10/15/2012 $ 1,668,325
-----------------------------------------------------------------------------------------
300,000 Johnson Controls, Inc., Deb., 8.20%, 6/15/2024 319,951
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 1,988,276
- ----------------------------------------------------------------------------------------------------------------------------
Insurance--1.18%
100,000 Aetna, Inc., Deb., 7.25%, 8/15/2023 109,369
-----------------------------------------------------------------------------------------
1,005,000 GE Global Insurance Holding Corp., Note, 6.45%, 3/1/2019 1,050,160
-----------------------------------------------------------------------------------------
100,000 Kemper Corp., Note, Series MTN, 8.875%, 10/17/2009 118,035
-----------------------------------------------------------------------------------------
85,000 Zurich Reinsurance Centre Holdings, Sr. Note, 7.125%, 10/15/2023 82,174
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 1,359,738
- ----------------------------------------------------------------------------------------------------------------------------
Metals, Minerals & Mining--0.74%
670,000 Alcoa, Inc., Note, 6.50%, 6/1/2011 754,734
-----------------------------------------------------------------------------------------
105,000 BHP Billiton Finance, Company Guarantee, 4.80%, 4/15/2013 104,520
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 859,254
- ----------------------------------------------------------------------------------------------------------------------------
Retailers--1.70%
225,000 May Department Stores Co., Deb., 7.50%, 6/1/2015 259,846
-----------------------------------------------------------------------------------------
1,500,000 Target Corp., Deb., 7.00%, 7/15/2031 1,699,335
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 1,959,181
- ----------------------------------------------------------------------------------------------------------------------------
Sovereign--1.33%
500,000 Tennessee Valley Authority, Bond, Series E, 6.25%, 12/15/2017 552,247
-----------------------------------------------------------------------------------------
1,000,000 United Mexican States, Note, 5.875%, 1/15/2014 979,500
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 1,531,747
- ----------------------------------------------------------------------------------------------------------------------------
Technology Services--1.65%
1,460,000 International Business Machines Corp., Deb., 8.375%, 11/1/2019 1,911,302
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Telecommunications & Cellular--5.68%
1,000,000 BellSouth Capital Funding Corp., Deb., 7.875%, 2/15/2030 1,208,455
-----------------------------------------------------------------------------------------
634,000 GTE Corp., Deb., 7.90%, 2/1/2027 688,744
-----------------------------------------------------------------------------------------
800,000 Nynex Capital Funding Co., Company Guarantee, Series MTNB, 8.23%, 10/15/2009 955,846
-----------------------------------------------------------------------------------------
260,000 Pacific Bell, Deb., 6.625%, 10/15/2034 266,717
-----------------------------------------------------------------------------------------
800,000 Southwestern Bell Telephone Co., Deb., 6.625%, 9/1/2024 817,086
-----------------------------------------------------------------------------------------
1,300,000 Southwestern Bell Telephone Co., Deb., 7.00%, 7/1/2015 1,509,699
-----------------------------------------------------------------------------------------
1,000,000 Verizon Global Funding, Note, 6.875%, 6/15/2012 1,111,175
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 6,557,722
- ----------------------------------------------------------------------------------------------------------------------------
Utilities--1.57%
250,000 Entergy Louisiana, Inc., 1st Mtg. Bond, 6.50%, 3/1/2008 255,655
-----------------------------------------------------------------------------------------
300,000 Indianapolis Power & Light Co., 1st Mtg. Bond, Series MBIA, 7.375%, 8/1/2007 339,572
-----------------------------------------------------------------------------------------
915,000 Mississippi Power Co., 1st Mtg. Bond, 6.875%, 12/1/2025 956,650
-----------------------------------------------------------------------------------------
250,000 Virginia Electric & Power Co., 1st Ref. Mtg., Series MBI, 7.00%, 1/1/2024 258,003
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 1,809,880
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $37,203,426) 38,175,775
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
<table>
<s> <c> <c>
Principal CCMI Bond Fund
Amount Schedule of Investments - November 30, 2003 (Unaudited) - continued Value
- ------------------ ---------------
- ----------------------------------------------------------------------------------------------------------------------------
U.S. TREASURIES--1.74.%
$ 2,000,000 U.S. Treasury, Note, 2.625%, 11/15/2006 $ 2,005,704
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURIES (IDENTIFIED COST $2,011,521) 2,005,704
- ----------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCIES--49.15%
Federal Home Loan Mortgage Corporation--11.56%
1,000,000 Federal Home Loan Mortgage Corporation, Note, 5.125%, 7/15/2009 1,021,338
-----------------------------------------------------------------------------------------
950,000 Federal Home Loan Mortgage Corporation, Note, 6.25%, 7/31/2017 950,404
-----------------------------------------------------------------------------------------
500,000 Federal Home Loan Mortgage Corporation, Note, Series MTN, 4.65%, 8/27/2010 502,270
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corporation, Note, Series MTN, 6.00%, 6/27/2017 1,046,898
-----------------------------------------------------------------------------------------
1,500,000 Federal Home Loan Mortgage Corporation, Note, Series MTN, 6.00%, 9/26/2018 1,493,481
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corporation, Note, Series MTN, 6.05%, 11/27/2017 1,007,927
-----------------------------------------------------------------------------------------
2,000,000 Federal Home Loan Mortgage Corporation, Note, Series MTN, 6.05%, 11/7/2017 1,993,770
-----------------------------------------------------------------------------------------
3,000,000 Federal Home Loan Mortgage Corporation, Sub. Note, 6.25%, 3/5/2012 3,202,227
-----------------------------------------------------------------------------------------
2,000,000 Federal Home Loan Mortgage Corporation, Sub. Note, 6.375%, 8/1/2011 2,131,706
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 13,350,021
- ----------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association--13.21%
1,000,000 Federal National Mortgage Association, Unsecd. Note, 4.55%, 12/18/2009 1,001,287
-----------------------------------------------------------------------------------------
500,000 Federal National Mortgage Association, Unsecd. Note, 4.70%, 5/13/2013 496,335
-----------------------------------------------------------------------------------------
2,500,000 Federal National Mortgage Association, Unsecd. Note, 5.375%, 7/16/2018 2,467,103
-----------------------------------------------------------------------------------------
250,000 Federal National Mortgage Association, Unsecd. Note, 5.50%, 4/23/2024 236,702
-----------------------------------------------------------------------------------------
2,500,000 Federal National Mortgage Association, Unsecd. Note, 5.75%, 11/7/2017 2,530,027
-----------------------------------------------------------------------------------------
1,000,000 Federal National Mortgage Association, Unsecd. Note, 6.00%, 8/14/2023 986,219
-----------------------------------------------------------------------------------------
2,000,000 Federal National Mortgage Association, Unsecd. Note, 6.05%, 8/18/2023 1,980,690
-----------------------------------------------------------------------------------------
1,000,000 Federal National Mortgage Association, Unsecd. Note, 6.20%, 6/13/2017 1,057,113
-----------------------------------------------------------------------------------------
600,000 Federal National Mortgage Association, Unsecd. Note, 6.25%, 2/28/2017 634,377
-----------------------------------------------------------------------------------------
1,560,000 Federal National Mortgage Association, Unsecd. Note, 7.00%, 4/15/2022 1,591,709
-----------------------------------------------------------------------------------------
1,250,000 Federal National Mortgage Association, Unsecd. Note, Series MTN, 5.50%, 11/8/2016 1,262,890
-----------------------------------------------------------------------------------------
500,000 Federal National Mortgage Association, Unsecd. Note, Series MTN, 6.37%, 2/25/2014 505,516
-----------------------------------------------------------------------------------------
500,000 Federal National Mortgage Association, Unsecd. Sub. Note, 5.125%, 1/02/2014 499,825
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 15,249,793
- ----------------------------------------------------------------------------------------------------------------------------
Government Agencies--24.38%
500,000 Federal Farm Credit Bank, Bond, 5.20%, 11/6/2013 503,625
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank System, Unsecd. Bond, 5.00%, 7/17/2018 946,623
-----------------------------------------------------------------------------------------
1,250,000 Federal Home Loan Bank System, Unsecd. Bond, 5.25%, 12/10/2013 1,244,616
-----------------------------------------------------------------------------------------
2,000,000 Federal Home Loan Bank System, Unsecd. Bond, 5.25%, 7/24/2018 1,927,936
-----------------------------------------------------------------------------------------
865,000 Federal Home Loan Bank System, Unsecd. Bond, 5.30%, 7/23/2018 836,255
-----------------------------------------------------------------------------------------
1,600,000 Federal Home Loan Bank System, Unsecd. Bond, 5.50%, 8/7/2018 1,567,933
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank System, Unsecd. Bond, Series 4R18, 6.125%, 11/5/2018 1,019,320
-----------------------------------------------------------------------------------------
1,500,000 Federal Home Loan Bank System, Unsecd. Bond, Series 5B10, 3.00%, 10/8/2010 1,479,695
-----------------------------------------------------------------------------------------
460,000 Federal Home Loan Bank System, Unsecd. Bond, Series 5D18, 6.125%, 11/5/2018 468,887
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank System, Unsecd. Bond, Series DJ18, 5.75%, 2/5/2018 1,002,096
-----------------------------------------------------------------------------------------
660,000 Federal Home Loan Bank System, Unsecd. Bond, Series EW17, 6.25%, 8/15/2017 663,657
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank System, Unsecd. Bond, Series FI17, 6.15%, 9/5/2017 1,004,853
-----------------------------------------------------------------------------------------
1,100,000 Federal Home Loan Bank System, Unsecd. Bond, Series GA17, 5.875%, 9/19/2017 1,103,109
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
<table>
<s> <c> <c>
Principal CCMI Bond Fund
Amount Schedule of Investments - November 30, 2003 (Unaudited) - continued Value
- ------------------ ---------------
GOVERNMENT AGENCIES--49.15% - continued
Government Agencies--24.38% - continued
-----------------------------------------------------------------------------------------
$ 2,500,000 Federal Home Loan Bank System, Unsecd. Bond, Series HG08, 1.79%, 3/3/2008 (a) $ 2,498,705
-----------------------------------------------------------------------------------------
1,150,000 Federal Home Loan Bank System, Unsecd. Bond, Series IG18, 5.37%, 3/19/2018 1,134,032
-----------------------------------------------------------------------------------------
1,700,000 Federal Home Loan Bank System, Unsecd. Bond, Series IM13, 2.12%, 6/25/2013 (a) 1,704,794
-----------------------------------------------------------------------------------------
1,250,000 Federal Home Loan Bank System, Unsecd. Bond, Series IT18, 5.24%, 3/26/2018 1,223,596
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank System, Unsecd. Bond, Series JU17, 5.70%, 11/21/2017 1,000,569
-----------------------------------------------------------------------------------------
2,000,000 Federal Home Loan Bank System, Unsecd. Bond, Series LU08, 1.79%, 3/24/2008 (a) 1,998,038
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank System, Unsecd. Bond, Series MD18, 5.00%, 5/8/2018 983,578
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank System, Unsecd. Bond, Series QR18, 5.05%, 6/26/2018 957,052
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank System, Unsecd. Bond, Series QS18, 5.00%, 6/26/2018 953,551
-----------------------------------------------------------------------------------------
1,010,000 Federal Home Loan Bank System, Unsecd. Bond, Series TT23, 5.25%, 6/5/2023 936,858
-----------------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank System, Unsecd. Bond, Series YA12, 5.25%, 12/3/2012 1,000,200
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 28,159,578
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $46,821,928) 56,759,392
- ----------------------------------------------------------------------------------------------------------------------------
MORTGAGE BACKED SECURITIES--6.29%
Banking--1.69%
2,000,000 Wells Fargo Mortgaged Backed Securities, 4.64%, 10/25/2033 (a) 1,950,000
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation--0.11%
122,657 Federal Home Loan Mortgage Corporation, Pool N98839, 7.00%, 5/1/2007 126,314
- ----------------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association--4.49%
405,687 Government National Mortgage Association, Pool 494081, 7.00%, 8/15/2014 434,175
-----------------------------------------------------------------------------------------
374,735 Government National Mortgage Association, Pool 544525, 7.00%, 5/15/2031 398,580
-----------------------------------------------------------------------------------------
1,638,664 Government National Mortgage Association, Pool 565504, 5.50%, 9/15/2032 1,658,175
-----------------------------------------------------------------------------------------
642,498 Government National Mortgage Association, Pool 780758, 7.00%, 4/15/2013 687,617
-----------------------------------------------------------------------------------------
986,077 Government National Mortgage Association, Pool 606831, 5.50%, 9/15/2033 997,819
-----------------------------------------------------------------------------------------
1,000,000 Government National Mortgage Association, Pool 622990, 5.50%, 11/15/2033 1,011,907
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 5,188,273
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL MORTGAGE BACKED SECURITIES (IDENTIFIED COST $5,176,659) 7,264,587
- ----------------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPALS--.65%
Oklahoma--0.65%
620,000 Choctaw County, OK IDA, Revenue Bonds, USA Guaranteed, 8.00%, 7/1/2012 753,257
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL LONG-TERM MUNICIPALS (IDENTIFIED COST $712,611) 753,257
- ----------------------------------------------------------------------------------------------------------------------------
Shares PREFERRED STOCKS--3.79%
Banking--0.09%
4,000 UBS Preferred Funding Trust IV, Pfd. 98,840
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 98,840
- ----------------------------------------------------------------------------------------------------------------------------
Financial Intermediaries--1.18%
14,000 ML Preferred Capital Trust V, Perpetual Series, Pfd. 380,800
-----------------------------------------------------------------------------------------
9,400 Morgan Stanley Capital Trust V, Pfd 227,480
-----------------------------------------------------------------------------------------
15,000 Wells Fargo Capital Trust VII, Pfd. 371,100
-----------------------------------------------------------------------------------------
15,800 Wells Fargo Capital Trust VIII, Pfd. 390,734
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 1,370,114
- ----------------------------------------------------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
<table>
<s> <c> <c>
CCMI Bond Fund
Shares Schedule of Investments - November 30, 2003 (Unaudited) - continued Value
- ------------------ ---------------
Financial Services--1.22%
15,000 BAC Capital Trust III, Pfd. $ 400,950
-----------------------------------------------------------------------------------------
10,150 Citigroup Capital IX, Pfd 254,055
-----------------------------------------------------------------------------------------
14,350 Citigroup Capital X, Pfd 364,490
-----------------------------------------------------------------------------------------
14,000 Wachovia Preferred Funding, Series A, Pfd. 388,360
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 1,407,855
- ----------------------------------------------------------------------------------------------------------------------------
Insurance--0.96%
6,400 ING Groep N.V., Pfd. 170,560
-----------------------------------------------------------------------------------------
22,000 ING Groep N.V., Perpetual Series, Pfd. 554,180
-----------------------------------------------------------------------------------------
15,500 PreferredPlus Trust, Pfd., Series GSG1 386,725
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 1,111,465
- ----------------------------------------------------------------------------------------------------------------------------
Sovereign Agency--0.34%
5,000 Fannie Mae, Pfd. 245,000
-----------------------------------------------------------------------------------------
5,500 Tennessee Valley Authority, Series D, Pfd 142,725
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 387,725
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (IDENTIFIED COST $4,271,350) 4,375,999
- ----------------------------------------------------------------------------------------------------------------------------
Principal
Amount MUTUAL FUNDS--6.19%
$ 4,556,201 Fifth Third Institutional Money Market Fund 4,556,201
-----------------------------------------------------------------------------------------
2,600,000 Goldman Sachs Financial Square Money Market Fund 2,600,000
--------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS (Identified Cost $7,156,201) 7,156,201
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.67% (IDENTIFIED COST $116,192,243)1 117,412,750
- ----------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES--NET--(1.67)% (1,923,084)
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS--100.00% 115,489,666
- ----------------------------------------------------------------------------------------------------------------------------
</table>
(a) Variable rate security, rate shown is as of November 30, 2003.
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Bond Fund
Statement of Assets and Liabilities
November 30, 2003 (Unaudited)
<table>
<s> <c>
Assets
Investments in securities, at value (cost $116,192,243) $ 117,412,750
- ----------------------------------------------------------------------------------------------------
Interest receivable 1,432,934
- ----------------------------------------------------------------------------------------------------
Dividends receivable 3,032
- ----------------------------------------------------------------------------------------------------
Receivable for fund shares sold 88,000
- ----------------------------------------------------------------------------------------------------
Other assets 1,632
- ----------------------------------------------------------------------------------------------------------------------
Total assets 118,938,348
- ----------------------------------------------------------------------------------------------------------------------
Liabilities
Accrued advisory fees 24,529
- ----------------------------------------------------------------------------------------------------
Redemptions payable 4,171
- ----------------------------------------------------------------------------------------------------
Other payables and accrued expenses 78,867
- ----------------------------------------------------------------------------------------------------
Payable for investments purchased 3,341,115
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities 3,448,682
- ----------------------------------------------------------------------------------------------------------------------
Net Assets $ 115,489,666
- ----------------------------------------------------------------------------------------------------==================
Net Assets consist of:
- ----------------------------------------------------------------------------------------------------
Paid in capital 112,407,316
- ----------------------------------------------------------------------------------------------------
Accumulated net investment income (loss) 118,119
- ----------------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments 1,743,724
- ----------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments 1,220,507
- ----------------------------------------------------------------------------------------------------------------------
Net Assets, for 11,075,663 shares $ 115,489,666
- ----------------------------------------------------------------------------------------------------==================
Net Asset Value
- --------------------------
and redemption price per share ($115,489,666 / 11,075,663) $ 10.43
- ----------------------------------------------------------------------------------------------------==================
Offering price per share ($10.43 / .9550) $ 10.92
- ----------------------------------------------------------------------------------------------------==================
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Bond Fund
Statement of Operations
Six months ended November 30, 2003 (Unaudited)
<table>
<s> <c>
Investment Income
- ----------------------------------------------------------------------------------------
Dividend income $ 80,776
- ----------------------------------------------------------------------------------------
Interest income 2,722,758
- ---------------------------------------------------------------------------------------- ----------------
Total Income 2,803,534
- ------------------------------------------------------------------------------------------------------------------
Expenses
- ----------------------------------------------------------------------------------------
Investment advisor fee 349,518
- ----------------------------------------------------------------------------------------
Administration expenses 72,784
- ----------------------------------------------------------------------------------------
Shareholder servicing fee 41,317
- ----------------------------------------------------------------------------------------
Fund accounting expenses 40,281
- ----------------------------------------------------------------------------------------
Registration expenses 17,412
- ----------------------------------------------------------------------------------------
Transfer agent expenses 14,774
- ----------------------------------------------------------------------------------------
Auditing expenses 8,500
- ----------------------------------------------------------------------------------------
Legal expenses 5,966
- ----------------------------------------------------------------------------------------
Trustee expenses 5,479
- ----------------------------------------------------------------------------------------
Printing expenses 4,550
- ----------------------------------------------------------------------------------------
Custodian expenses 3,836
- ----------------------------------------------------------------------------------------
Miscellaneous expenses 2,398
- ----------------------------------------------------------------------------------------
Insurance expenses 1,970
- --------------------------------------------------------------------------------------------------
Total Expenses 568,785
- ------------------------------------------------------------------------------------------------------------------
Expenses waived by advisor (102,325)
- ------------------------------------------------------------------------------------------------------------------
Net Expenses 466,460
- ------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 2,337,074
----------------
Realized & Unrealized Gain (Loss)
- ----------------------------------------------------------------------------------------
Net realized gain (loss) on investment securities 600,509
- ----------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) on investment securities (5,030,024)
- ------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investment securities (4,429,515)
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ (2,092,441)
- --------------------------------------------------------------------------------------------------================
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Bond Fund
Statement of Changes In Net Assets
<table>
<s> <c> <c>
Six Months ended
Nov. 30, 2003 Period ended
Increase (Decrease) in Net Assets (Unaudited) May 31, 2003 (a)
------------------ --------------
- ---------------------------------------------------------------------------------------
Operations
- ---------------------------------------------------------------------------------------
Net investment income (loss) $ 2,337,074 $ 3,878,341
- ---------------------------------------------------------------------------------------
Net realized gain (loss) on investment securities 600,509 1,244,292
- ---------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on investment securities (5,030,024) 5,618,729
------------------ --------------
Net increase (decrease) in net assets resulting from operations (2,092,441) 10,741,362
- -------------------------------------------------------------------------------------------------------------------------
Distributions
- ---------------------------------------------------------------------------------------
From net investment income (2,244,919) (3,852,377)
- ---------------------------------------------------------------------------------------
From net realized gain - (101,077)
- --------------------------------------------------------------------------------------------------------- --------------
Total distributions (2,244,919) (3,953,454)
- -------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
- ---------------------------------------------------------------------------------------
Proceeds from shares sold 13,213,834 74,941,481
- ---------------------------------------------------------------------------------------
Proceeds from shares issued in connection with the tax-free transfer
of assets from National Commerce Bank Common Trust Fund A - Fixed Income Fund - 43,258,837
- ---------------------------------------------------------------------------------------
Reinvestment of distributions 2,730 101,354
- ---------------------------------------------------------------------------------------
Amount paid for shares repurchased (8,258,089) (10,221,028)
- --------------------------------------------------------------------------------------------------------- --------------
Net increase (decrease) in net assets resulting
from share transactions 4,958,475 108,080,644
- -------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 621,114 114,868,552
- -------------------------------------------------------------------------------------------------------------------------
Net Assets
Beginning of period 114,868,552 -
- ---------------------------------------------------------------------------------------
End of period [including accumulated net
investment income (loss) of $118,119 and $25,964 respectively] $ 115,489,666 $114,868,552
- ---------------------------------------------------------------------------------------================== ==============
Capital Share Transactions
- ---------------------------------------------------------------------------------------
Shares sold 1,252,195 7,255,564
- ---------------------------------------------------------------------------------------
Shares issued in connection with the tax-free transfer of assets from
National Commerce Bank Common Trust Fund A - Fixed Income Fund - 4,325,884
- ---------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 261 9,662
- ---------------------------------------------------------------------------------------
Shares repurchased (788,330) (979,573)
- --------------------------------------------------------------------------------------------------------- --------------
Net increase (decrease) from capital transactions 464,126 10,611,537
- -------------------------------------------------------------------------------------------------------------------------
</table>
(a) For the period July 1, 2002 (commencement of operations) to May 31, 2003.
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Bond Fund
Financial Highlights
<table>
<s> <c> <c>
Six Months ended Period ended
Nov. 30, 2003(b) May 31, 2003 (a)
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------
Selected Per Share Data
- ---------------------------------------------------------------------------
Net asset value, beginning of period $ 10.82 $ 10.00
- ---------------------------------------------------------------------------
Income from investment operations
- ---------------------------------------------------------------------------
Net investment income (loss) 0.21 0.44
- ---------------------------------------------------------------------------
Net realized and unrealized gain (loss) (0.40) 0.83
- ---------------------------------------------------------------------------------------------------- ----------------------
Total from investment operations (0.19) 1.27
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions to shareholders:
- ---------------------------------------------------------------------------
From net investment income (0.20) (0.44)
From net realized gain - (0.01)
- ---------------------------------------------------------------------------------------------------- ----------------------
Total distributions (0.20) (0.45)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.43 $ 10.82
- ------------------------------------------------------------------------------------------------------------------------------
Total Return (c) (d) -1.72% 12.97%
- ------------------------------------------------------------------------------------------------------------------------------
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 115,490 $ 114,869
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (e) 0.80% 0.85%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (e) 4.02% 4.73%
- ------------------------------------------------------------------------------------------------------------------------------
Expense waiver/reimbursement (e) (f) 0.18% 0.12%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 64%
- ------------------------------------------------------------------------------------------------------------------------------
</table>
(a) For the period July 1, 2002 (date of initial public offering) through May
31, 2003.
(b) For the period June 1, 2003 to November 30, 2003. (c) For periods of less
than a full year, total return is not annualized. (d) Based on net asset
value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(e) Computed on an annualized basis.
(f) This voluntary expense decrease is reflected in both the expense and the
net investment income ratios above.
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Bond Fund
Notes to Financial Statements
November 30, 2003 (Unaudited)
NOTE 1. ORGANIZATION
The CCMI Bond Fund (the "Fund") is a diversified portfolio of
CCMI Funds (the "Trust"). The Trust is an open-end, management
investment company that was established under the laws of the
Commonwealth of Massachusetts on December 11, 1991. The Trust may
offer separate series of shares representing interests in separate
portfolios of securities. The Trust changed its name from 111 Corcoran
Funds to CCB on May 13, 1998. The Trust changed its name from CCB
Funds to CCMI Funds on June 1, 2001. The Board of Trustees (the
"Board") governs the Fund. The Fund's investment adviser is Commerce
Capital Management, Inc. (the "Adviser"). The investment objective of
the Fund is to provide as high a level of current income as is
consistent with the preservation of capital by investing primarily in
a professionally managed, diversified portfolio of fixed income
securities. The investment objective cannot be changed without
shareholder approval.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial statements.
Securities Valuation - Market values of the Fund's portfolio
securities are determined for equity securities, according to the last
sale price in the market in which they are primarily traded (either a
national securities exchange or the over-the-counter market), if
available. In the absence of recorded sales for equity securities, the
security is valued according to the mean between the last closing bid
and asked prices. Futures contracts and options are generally valued
at market values established by the exchanges on which they are traded
at the close of trading on such exchanges. Options traded in the over-
the-counter market are generally valued according to the mean between
the last bid and the last asked price for the option as provided by an
investment dealer or other financial institution that deals in the
option. The Board may determine in good faith that another method of
valuing such investments is necessary to appraise their fair market
value;
Fixed income securities, are valued according to the mean between
bid and asked prices as furnished by an independent pricing service,
except that fixed income securities with remaining maturities of less
than 60 days at the time of purchase may be valued at amortized cost;
and for all other securities at fair value as determined in good faith
by the Adviser, subject to and in accordance with policies approved by
the Board.
Prices provided by independent pricing services may be determined
without relying exclusively on quoted prices and may consider
institutional trading in similar groups of securities, yield, quality,
stability, risk, coupon rate, maturity, type of issue, trading
characteristics, and other market data or factors. From time to time,
when prices cannot be obtained from an independent pricing service,
securities may be valued based on quotes from broker-dealers or other
financial institutions that trade the securities.
Federal Income Taxes- There is no provision for federal income
tax. The Fund has met and intends to continue to qualify each year as
a "regulated investment company" under Sub-Chapter M of the Internal
Revenue Code of 1986, as amended, by distributing substantially all of
its net investment income monthly and net realized capital gains
annually.
Security Transactions and Related Income- The Fund follows
industry practice and records security transactions on the trade date.
The specific identification method is used for determining gains or
losses for financial statements and income tax purposes. Dividend
income is recorded on the ex-dividend date and interest income is
recorded on an accrual basis. Discounts and premiums on securities
purchased are amortized over the life of the respective securities.
Dividends and Distributions- The Fund intends to distribute
substantially all of its net investment income as dividends to its
shareholders on at least a monthly basis. The Fund intends to
distribute its net realized long term capital gains and its net
realized short term capital gains at least once a year.
<page>
CCMI Bond Fund
Notes to Financial Statements
November 30, 2003 (Unaudited) - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser is Commerce Capital Management, Inc. Under the terms
of the Investment Advisory Contract (the "Agreement"), subject to the
direction of the Trustees of the Trust, the Adviser provides
investment research and supervision of the investments of the Fund and
conducts a continuous program of investment evaluation and of
appropriate sale or other disposition and reinvestment of the Fund's
assets. The Agreement provides that the Fund pays all of its own
expenses and its allocable share of Trust expenses, including without
limitation, the expenses of organizing the Trust and continuing its
existence; fees and expenses of Trustees and officers of the Trust;
fees for investment advisory services and administrative personnel and
services; fees and expenses of preparing its registration statements
and any amendments thereto; expenses of registering and qualifying the
Trust, the Fund and shares ("Shares") of the Fund under Federal and
state laws and regulations; expenses of preparing, printing and
distributing prospectuses (and any amendments thereto) to current
shareholders; interest expense, taxes, fees and commissions of every
kind; expenses of issue (including cost of Share certificates),
purchase, repurchase and redemption of Shares, including expenses
attributable to a program of periodic issue; charges and expenses of
custodians, transfer agents, dividend disbursing agents, shareholder
servicing agents, and registrars; printing and mailing costs,
auditing, accounting and legal expenses; reports to shareholders and
governmental officers and commissions; expenses of meetings of
Trustees and shareholders and proxy solicitations therefore; insurance
expenses; association membership dues; and such nonrecurring items as
may arise, including all losses and liabilities incurred in
administering the Trust and the Fund. The Fund will also pay its
allocable share of such extraordinary expenses as may arise including
expenses incurred in connection with litigation, proceedings, and
claims and the legal obligations of the Trust to indemnify its
officers and Trustees and agents with respect thereto. As compensation
for its management services, the Fund is obligated to pay the Adviser
an annual fee equal to 0.60% of the average daily net assets of the
Fund. For the six months ended November 30, 2003, the Adviser earned a
fee of $349,518 from the Fund. At November 30, 2003, the Fund owed the
Adviser $24,529 for its advisory services. For the period ending May
31, 2004, the Adviser has voluntarily agreed to waive a portion of its
fees to maintain annual Fund operating expenses at 0.81%. This
voluntary waiver may be terminated at any time.
Unified Fund Services, Inc. ("Unified"), acts as the Fund's
transfer agent. A Trustee and the officers of the Trust are members of
management and/or employees of Unified. Unified maintains the records
of each shareholder's account, answers shareholders' inquiries
concerning their accounts, processes purchases and redemptions of the
Funds' shares, acts as dividend and distribution disbursing agent and
performs other transfer agent and shareholder service functions.
Unified receives a monthly fee for transfer agency services from the
Fund of $1.25 per shareholder (subject to various monthly minimum
fees, the maximum being $1,250 per month for assets of $5 million or
more).
In addition, Unified provides the Fund with fund accounting
services, which include certain monthly reports, record keeping and
other management-related services. For its services as fund
accountant, Unified receives an annual fee from the Fund equal to
0.05% of the Fund's assets up to $50 million, 0.04% of the Fund's
assets from $50 million to $100 million, 0.03% of the Fund's assets
from $100 million to $150 million, and 0.02% of the Fund's assets over
$150 million (subject to various monthly minimum fees, the maximum
being $1,667 per month for assets of $5 million or more).
Unified also provides the Fund with administrative services,
including all regulatory reporting and necessary office equipment,
personnel and facilities. Unified receives a monthly fee from the Fund
equal to an annual rate of 0.13% of the Fund's assets under $50
million, 0.10% of the Fund's assets from $50 million to $100 million,
0.08% of the Fund's assets from $100 million to $150 million, and
0.06% of the Fund's assets over $150 million (subject to a minimum fee
of $2,083 per month).
Certain Trustees and the officers of the Trust are members of
management and employees of Unified, and/or shareholders of Unified
Financial Services, Inc.
The Fund has adopted a Rule 12b-1 Plan, which allows it to pay
marketing fees to Unified Financial Securities, Inc. (the
"Distributor") and investment professionals for the sale, distribution
and customer servicing of the Fund's shares. The Fund has no present
intention of paying or accruing a 12b-1 fee for the fiscal year ending
May 31, 2004. A Trustee and
<page>
CCMI Bond Fund
Notes to Financial Statements
November 30, 2003 (Unaudited) - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - continued
officers of the Trust are directors and/or officers,
respectively, of the Distributor and of Unified Financial Services,
Inc. (the parent company of the Distributor and Unified), and may be
deemed to be affiliates of the Distributor.
The Fund has adopted a Shareholder Services Plan. Pursuant to the
Plan, the Fund may pay Unified Fund Services Inc., up to 0.25% of
average net assets for providing shareholder services and maintaining
shareholder accounts. Unified Fund Services Inc. may select others to
perform these services for their customers and may pay fees to them.
As of November 30, 2003, the Fund paid $41,317 in Shareholder
Servicing fees.
NOTE 4. INVESTMENTS
For the six months ended November 30, 2003, purchases and
sales of investment securities, other than short-term investments
were as follows:
Amount
-----------------
Purchases
U.S. Government Obligations $ 45,123,260
Other 18,393,090
Sales
U.S. Government Obligations $ 30,853,329
Other 29,816,719
As of November 30, 2003, the net unrealized depreciation of
investments for tax purposes were as follows:
Amount
--------------
Gross Appreciation $ 2,075,922
Gross (Depreciation) (855,415)
--------------
Net Appreciation
on Investments $ 1,220,507
==============
At November 30, 2003, the aggregate cost of securities, excluding
U.S. government obligations, for federal income tax purposes was
$116,192,243.
NOTE 5. ESTIMATES
Preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
NOTE 6. RELATED PARTY TRANSACTIONS
The beneficial ownership, either directly or indirectly, of 25%
or more of the voting securities of a fund creates a presumption of
control of the fund, under Section 2(a)(9) of the Investment Company
Act of 1940. As of November 30, 2003, Central Carolina Bank & Trust,
for the benefit of its customers, held over 99% of the Fund.
<page>
CCMI Bond Fund
Notes to Financial Statements
November 30, 2003 (Unaudited) - continued
NOTE 7. CHANGE OF AUDITORS
On July 21, 2003, McCurdy & Associates CPA's, Inc. ("McCurdy &
Associates") was selected to replace KPMG, LLP ("KPMG") as the Fund's
independent auditor for the 2004 fiscal year. The Fund's selection of
McCurdy & Associates was recommended by the Audit Committee and was
approved by the Board of Trustees.
KPMG's reports on the Fund's financial statements as of May 31,
2003 did not contain an adverse opinion or a disclaimer of opinion and
were not qualified or modified as to uncertainty, audit scope or
accounting principles. At the financial statement date and through the
date of the engagement of McCurdy & Associates, there were no
disagreements between the Fund and KPMG on any matter of accounting
principles or practices, financial statement disclosure, or auditing
scope or procedures, which such disagreements, if not resolved to the
satisfaction of KPMG, would have caused it to make reference to the
subject matter of the disagreement in connection with its reports on
the financial statements for such periods.
<page>
[logo] CCMI FUNDS
CCMI EQUITY FUND
- ------------------------------
A Portfolio of CCMI Funds
Semi-Annual Report to Shareholders
November 30, 2003
Not FDIC Insured * May Lose Value * No Bank Guarantee
<page>
<table>
<s> <c> <c>
CCMI Equity Fund
Schedule of Investments
November 30, 2003 (Unaudited)
Shares Common Stocks - 91.79% Value
- --------------------------------------------------------------------------------------------------
Communications - 2.99%
58,000 SBC Communications, Inc. $ 1,350,240.00
--------------------------------------------------------------------------------
45,000 Sprint Corp. 674,550
--------------------------------------------------------------------------------
35,000 Verizon Communications, Inc. 1,146,950
--------------------------------------------------------------------------------
TOTAL 3,171,740
--------------------------------------------------------------------------------
Consumer Non-Durables - 10.42%
30,000 Anheuser-Busch Co. 1,554,600
--------------------------------------------------------------------------------
30,400 Cadbury Schweppes Public Ltd. Co. (c) 792,528
--------------------------------------------------------------------------------
42,000 Constellation Brands, Inc. - Class A (a) 1,449,420
--------------------------------------------------------------------------------
20,000 Coors Adolph Co. - Class B 1,102,200
--------------------------------------------------------------------------------
31,000 General Mills, Inc. 1,395,310
--------------------------------------------------------------------------------
30,000 Kraft Foods, Inc. 950,100
--------------------------------------------------------------------------------
35,000 PepsiCo, Inc. 1,684,200
--------------------------------------------------------------------------------
63,000 The Gillette Co. 2,124,990
--------------------------------------------------------------------------------
TOTAL 11,053,348
--------------------------------------------------------------------------------
Consumer Services - 8.67%
45,000 Carnival Corp. 1,583,550
--------------------------------------------------------------------------------
65,000 Comcast Corp. (a) 1,959,750
--------------------------------------------------------------------------------
52,500 Darden Restaurants, Inc. 1,087,275
--------------------------------------------------------------------------------
15,000 Gannett Co., Inc. 1,299,000
--------------------------------------------------------------------------------
60,000 McDonald's Corp. 1,537,800
--------------------------------------------------------------------------------
75,000 Walt Disney Co. (a) 1,731,750
--------------------------------------------------------------------------------
TOTAL 9,199,125
--------------------------------------------------------------------------------
Electronic Technology - 8.07%
35,000 Applied Materials, Inc. (a) 850,500
--------------------------------------------------------------------------------
75,000 Cisco Systems, Inc. (a) 1,699,500
--------------------------------------------------------------------------------
135,000 Commscope, Inc. (a) 2,154,600
--------------------------------------------------------------------------------
40,000 Electronics for Imaging, Inc. (a) 1,104,000
--------------------------------------------------------------------------------
45,000 Intel Corp. 1,504,350
--------------------------------------------------------------------------------
42,000 Texas Instruments, Inc. 1,249,920
--------------------------------------------------------------------------------
TOTAL 8,562,870
--------------------------------------------------------------------------------
Energy Minerals - 5.16%
15,000 ChevronTexaco Corp. 1,126,500
--------------------------------------------------------------------------------
22,500 ConocoPhillips Co. 1,276,650
--------------------------------------------------------------------------------
85,000 Exxon Mobil Corp. 3,074,450
--------------------------------------------------------------------------------
TOTAL 5,477,600
--------------------------------------------------------------------------------
Finance - 18.95%
38,000 American Express Co. 1,736,980
--------------------------------------------------------------------------------
26,200 American International Group, Inc. 1,518,290
--------------------------------------------------------------------------------
1,250 Berkshire Hathaway, Inc. - Class B (a) 3,501,250
--------------------------------------------------------------------------------
52,066 Citigroup, Inc. 2,449,185
--------------------------------------------------------------------------------
40,100 Duke Realty Corp. 1,235,080
--------------------------------------------------------------------------------
45,000 FleetBoston Financial Corp. 1,827,000
--------------------------------------------------------------------------------
50,000 J.P. Morgan Chase & Co. 1,768,000
--------------------------------------------------------------------------------
45,000 Jefferson-Pilot Corp. 2,183,850
--------------------------------------------------------------------------------
20,000 Merrill Lynch & Co., Inc. 1,135,000
--------------------------------------------------------------------------------
30,000 Prologis 915,000
--------------------------------------------------------------------------------
40,000 Washington Mutual, Inc. 1,832,400
--------------------------------------------------------------------------------
TOTAL 20,102,035
--------------------------------------------------------------------------------
Health Services - 1.36%
40,000 Laboratory Corp. of America Holdings (a) 1,444,800
--------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
<table>
<s> <c> <c>
CCMI Equity Fund
Schedule of Investments
November 30, 2003 (Unaudited)
Shares Common Stocks - 91.79% Value
- --------------------------------------------------------------------------------------------------
Health Technology - 12.32%
25,000 Abbott Laboratories, Inc. $ 1,105,000
--------------------------------------------------------------------------------
15,000 Amgen, Inc. (a) 862,650
--------------------------------------------------------------------------------
55,000 Bristol-Myers Squibb Inc. 1,449,250
--------------------------------------------------------------------------------
45,000 Johnson & Johnson 2,218,050
--------------------------------------------------------------------------------
35,000 Medimmune, Inc. (a) 833,000
--------------------------------------------------------------------------------
37,000 Merck & Co., Inc. 1,502,200
--------------------------------------------------------------------------------
80,000 Pfizer, Inc. 2,684,000
--------------------------------------------------------------------------------
33,000 Schering-Plough Corp. 529,650
--------------------------------------------------------------------------------
48,000 Wyeth 1,891,200
--------------------------------------------------------------------------------
TOTAL 13,075,000
--------------------------------------------------------------------------------
Industrial Services - 1.42%
32,000 Schlumberger Ltd. 1,501,440
--------------------------------------------------------------------------------
Non-Energy Minerals - 3.28%
72,000 Alcoa, Inc. 2,362,320
--------------------------------------------------------------------------------
20,000 Nucor Corp. 1,122,200
--------------------------------------------------------------------------------
TOTAL 3,484,520
--------------------------------------------------------------------------------
Producer Manufacturing - 5.17%
45,000 General Electric Co. 1,290,150
--------------------------------------------------------------------------------
78,900 Molex, Inc. - Class A 2,139,768
--------------------------------------------------------------------------------
24,000 United Technologies Corp. 2,056,800
--------------------------------------------------------------------------------
TOTAL 5,486,718
--------------------------------------------------------------------------------
Retail Trade - 1.86%
55,000 Costco Wholesale Corp. (a) 1,970,100
--------------------------------------------------------------------------------
Technology Services - 7.27%
10,000 Affiliated Computer Services, Inc. - Class A (a) 501,400
--------------------------------------------------------------------------------
70,000 Autodesk, Inc. 1,625,400
--------------------------------------------------------------------------------
32,000 Automatic Data Processing, Inc. 1,223,360
--------------------------------------------------------------------------------
32,000 First Data Corp. 1,211,200
--------------------------------------------------------------------------------
15,000 International Business Machines Corp. 1,358,100
--------------------------------------------------------------------------------
70,000 Microsoft Corp. 1,799,000
--------------------------------------------------------------------------------
TOTAL 7,718,460
--------------------------------------------------------------------------------
Transportation - 0.82%
12,000 United Parcel Services, Inc. $ 873,240
--------------------------------------------------------------------------------
Utilities - 4.03%
15,000 Apache Corp. 1,077,000
--------------------------------------------------------------------------------
40,100 Black Hills Corp. 1,293,626
--------------------------------------------------------------------------------
30,000 Progress Energy, Inc. 1,314,600
--------------------------------------------------------------------------------
20,000 The Southern Co. 585,400
--------------------------------------------------------------------------------
TOTAL 4,270,626
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $78,622,037) 97,391,622
--------------------------------------------------------------------------------
Principal
Amount Money Market Securities - 8.36%
$ 4,530,213 Fifth Third Institutional Money Market Fund, 0.91% (b) 4,530,213
--------------------------------------------------------------------------------
Goldman Sachs Financial Square Fund -
4,341,993 Money Market Fund, 0.96% (b) 4,341,993
--------------------------------------------------------------------------------
TOTAL MONEY MARKET (Cost $8,872,206) 8,872,206
--------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $87,494,243) - 100.15% 106,263,828
--------------------------------------------------------------------------------
Liabilities in excess of cash and other assets - (0.15%) (156,129)
--------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.00% $ 106,107,699
--------------------------------------------------------------------------------
</table>
(a) Non-income producing.
(b) Variable rate security; the coupon rate shown represents
the rate at November 30, 2003.
(C) American Depositary Receipt.
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Equity Fund
Statement of Assets and Liabilities
November 30, 2003 (Unaudited)
<table>
<s> <c>
Assets
- ----------------------------------------------------------------------------------------------------
Investments in securities, at value (cost $87,494,243) $ 106,263,828
- ----------------------------------------------------------------------------------------------------
Cash 1
- ----------------------------------------------------------------------------------------------------
Interest receivable 6,418
- ----------------------------------------------------------------------------------------------------
Dividends receivable 171,358
- ----------------------------------------------------------------------------------------------------
Receivable for investments sold 240,327
- ----------------------------------------------------------------------------------------------------
Receivable for fund shares sold 73,783
- ----------------------------------------------------------------------------------------------------------------------
Total assets 106,755,715
- ----------------------------------------------------------------------------------------------------------------------
Liabilities
Accrued advisory fees 62,341
- ----------------------------------------------------------------------------------------------------
Redemptions payable 77,409
- ----------------------------------------------------------------------------------------------------
Other payables and accrued expenses 75,436
- ----------------------------------------------------------------------------------------------------
Payable for investments purchased 432,830
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities 648,016
- ----------------------------------------------------------------------------------------------------------------------
Net Assets $ 106,107,699
- ----------------------------------------------------------------------------------------------------------------------
Net Assets consist of:
Paid in capital 87,028,956
- ----------------------------------------------------------------------------------------------------
Accumulated net investment income (loss) 187,428
- ----------------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments 121,730
- ----------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments 18,769,585
- ----------------------------------------------------------------------------------------------------------------------
Net Assets, for 7,670,541 shares $ 106,107,699
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value
and redemption price per share ($106,107,699 / 7,670,541) $ 13.83
- ----------------------------------------------------------------------------------------------------------------------
Offering price per share ($13.83 / .9425) $ 14.67
- ----------------------------------------------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Equity Fund
Statement of Operations
Six months ended November 30, 2003 (Unaudited)
<table>
<s> <c>
Investment Income
- ----------------------------------------------------------------------------------------------------
Dividend income $ 856,017
- ----------------------------------------------------------------------------------------------------
Interest income 40,106
- -------------------------------------------------------------------------------------------------------------------
Total Income 896,123
- -------------------------------------------------------------------------------------------------------------------
Expenses
Investment advisor fee 420,314
- ----------------------------------------------------------------------------------------------------
Shareholder servicing fees 129,859
- ----------------------------------------------------------------------------------------------------
Administration expenses 64,362
- ----------------------------------------------------------------------------------------------------
Auditing expenses 9,695
- ----------------------------------------------------------------------------------------------------
Custodian expenses 5,288
- ----------------------------------------------------------------------------------------------------
Fund accounting expenses 39,515
- ----------------------------------------------------------------------------------------------------
Insurance expenses 2,357
- ----------------------------------------------------------------------------------------------------
Legal expenses 8,607
- ----------------------------------------------------------------------------------------------------
Trustee expenses 5,982
- ----------------------------------------------------------------------------------------------------
Registration expenses 14,708
- ----------------------------------------------------------------------------------------------------
Printing expenses 7,722
- ----------------------------------------------------------------------------------------------------
Transfer agent expenses 18,056
- ----------------------------------------------------------------------------------------------------
Miscellaneous expenses 2,625
---------------
- ----------------------------------------------------------------------------------------------------
Total Expenses 729,090
- ----------------------------------------------------------------------------------------------------
Expenses Waived by Advisor (81,735)
- ----------------------------------------------------------------------------------------------------
Shareholder service fee waived (49,925)
- -------------------------------------------------------------------------------------------------------------------
Net Expenses 597,430
- -------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 298,693
- -------------------------------------------------------------------------------------------------------------------
Realized & Unrealized Gain (Loss)
- ----------------------------------------------------------------------------------------------------
Net realized gain (loss) on investment securities 514,251
- ----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation)
on investment securities 8,102,914
-------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investment securities 8,617,165
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 8,915,858
- -------------------------------------------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Equity Fund
Statement of Changes In Net Assets
<table>
<s> <c> <c>
Six Months ended
Nov. 30, 2003 Year ended
Increase (Decrease) in Net Assets (Unaudited) May 31, 2003
------------------ ---------------
Operations
Net investment income (loss) $ 298,693 $ 696,317
- -----------------------------------------------------------------------------------------
Net realized gain (loss) on investment securities 514,251 124,107
- -----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) 8,102,914 (8,216,301)
- ----------------------------------------------------------------------------------------------------------- ---------------
Net increase (decrease) in net assets resulting from operations 8,915,858 (7,395,877)
- -----------------------------------------------------------------------------------------------------------------------------
Distributions
- -----------------------------------------------------------------------------------------
From net investment income (231,696) (662,632)
- -----------------------------------------------------------------------------------------
From net realized gain - (659,765)
- ----------------------------------------------------------------------------------------------------------- ---------------
Total distributions (231,696) (1,322,397)
- -----------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
- -----------------------------------------------------------------------------------------
Proceeds from shares sold 12,796,242 21,036,061
- -----------------------------------------------------------------------------------------
Reinvestment of distributions 21,460 707,995
- -----------------------------------------------------------------------------------------
Amount paid for shares repurchased (8,068,462) (24,599,190)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from share transactions 4,749,240 (2,855,134)
- ----------------------------------------------------------------------------------------------------------- ---------------
Total Increase (Decrease) in Net Assets 13,433,402 (11,573,408)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------
Beginning of period 92,674,297 104,247,705
- -----------------------------------------------------------------------------------------
End of period [including accumulated net
investment income (loss) of $298,693 and $120,431, respectively] $ 106,107,699 $ 92,674,297
- -----------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
- -----------------------------------------------------------------------------------------
Shares sold 975,531 1,781,750
- -----------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 1,656 62,410
- -----------------------------------------------------------------------------------------
Shares repurchased (613,974) (2,098,814)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from capital transactions 363,213 (254,654)
- -----------------------------------------------------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Equity Fund
Financial Highlights
<table>
<s> <c> <c> <c> <c> <c> <c>
Six Months ended
Nov. 30, 2003 Year ended Year ended
Year ended Year ended Year ended
(Unaudited) May 31, 2003 May 31, 2002
(a) May 31, 2001 May 31, 2000 May 31,
1999
-------------- ------------- ------------- ------------ ------------ ------------
Selected Per Share Data
- -----------------------------------------
Net asset value, beginning of period $ 12.68 $ 13.79 $ 16.17 $ 21.15 $ 21.74 $ 20.24
- -----------------------------------------
Income from investment operations
- -----------------------------------------
Net investment income (loss) 0.04 0.10 0.07 0.07 0.08 0.08
- -----------------------------------------
Net realized and unrealized gain (loss) 1.14 (1.03) (1.89) (1.88) 3.27 3.10
- ----------------------------------------- ------------- ------------- ------------- ------------ ------------ ------------
Total from investment operations 1.18 (0.93) (1.82) (1.81) 3.35 3.18
- ----------------------------------------- ------------- ------------- ------------- ------------ ------------ ------------
Less Distributions to shareholders:
- -----------------------------------------
From net investment income (0.03) (0.09) (0.06) (0.08) (0.08) (0.08)
- -----------------------------------------
From net realized gain 0.00 (0.09) (0.50) (3.09) (3.86) (1.60)
- ----------------------------------------- ------------- ------------- ------------- ------------ ------------ ------------
Total distributions (0.03) (0.18) (0.56) (3.17) (3.94) (1.68)
- ------------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------
Net asset value, end of period $ 13.83 $ 12.68 $ 13.79 $ 16.17 $ 21.15 $ 21.74
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (b) 9.33% -6.55% -11.46% -9.30% 16.12% 15.90%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 106,108 $ 92,674 $ 104,248 $ 70,238 $ 93,870 $ 99,526
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.18% 1.20% 1.19% 1.17% 1.09% 1.00%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 0.59% 0.81% 0.50% 0.34% 0.38% 0.39%
- ------------------------------------------------------------------------------------------------------------------------------------
Expense waiver/reimbursement (c) 0.26% 0.32% 0.28% 0.28% 0.25% 0.09%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 5% 24% 36% 44% 42% 92%
- ------------------------------------------------------------------------------------------------------------------------------------
</table>
(a) Beginning with the year ended May 31, 2002, the Fund was audited by KPMG
LLP. Each of the previous years was audited by other auditors.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and the net
investment income ratios above.
See accompanying notes which are an integral part of the financial statements.
<page>
CCMI Equity Fund
Notes to Financial Statements
November 30, 2003 (Unaudited)
NOTE 1. ORGANIZATION
The CCMI Equity Fund (the "Fund") is a diversified portfolio of
CCMI Funds (the "Trust"). The Trust is an open-end, management
investment company that was established under the laws of the
Commonwealth of Massachusetts on December 11, 1991. The Trust may
offer separate series of shares representing interests in separate
portfolios of securities. The Trust changed its name from 111 Corcoran
Funds to CCB Funds and the Fund changed its name from 111 Corcoran
Equity Fund to CCB Equity Fund on May 13, 1998. The Trust changed its
name from CCB Funds to CCMI Funds and the Fund changed its name from
CCB Equity Fund to CCMI Equity Fund on June 1, 2001. The Board of
Trustees (the "Board") governs the Fund. The Fund's investment adviser
is Commerce Capital Management, Inc. (the "Adviser"). The investment
objective of the Fund is to provide high total return over longer
periods of time through appreciation of capital and current income
provided by dividends and interest payments. The investment objective
cannot be changed without shareholder approval.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial statements.
Securities Valuation - Market values of the Fund's portfolio
securities are determined for equity securities, according to the last
sale price in the market in which they are primarily traded (either a
national securities exchange or the over-the-counter market), if
available. In the absence of recorded sales for equity securities, the
security is valued according to the mean between the last closing bid
and asked prices. Futures contracts and options are generally valued
at market values established by the exchanges on which they are traded
at the close of trading on such exchanges. Options traded in the over-
the-counter market are generally valued according to the mean between
the last bid and the last asked price for the option as provided by an
investment dealer or other financial institution that deals in the
option. The Board may determine in good faith that another method of
valuing such investments is necessary to appraise their fair market
value;
Fixed income securities, are valued according to the mean between
bid and asked prices as furnished by an independent pricing service,
except that fixed income securities with remaining maturities of less
than 60 days at the time of purchase may be valued at amortized cost;
and for all other securities at fair value as determined in good faith
by the Adviser, subject to and in accordance with policies approved by
the Board.
Prices provided by independent pricing services may be determined
without relying exclusively on quoted prices and may consider
institutional trading in similar groups of securities, yield, quality,
stability, risk, coupon rate, maturity, type of issue, trading
characteristics, and other market data or factors. From time to time,
when prices cannot be obtained from an independent pricing service,
securities may be valued based on quotes from broker-dealers or other
financial institutions that trade the securities.
Federal Income Taxes- There is no provision for federal income
tax. The Fund has met and intends to continue to qualify each year as
a "regulated investment company" under Sub-Chapter M of the Internal
Revenue Code of 1986, as amended, by distributing substantially all of
its net investment income quarterly and net realized capital gains
annually.
Security Transactions and Related Income- The Fund follows
industry practice and records security transactions on the trade date.
The specific identification method is used for determining gains or
losses for financial statements and income tax purposes. Dividend
income is recorded on the ex-dividend date and interest income is
recorded on an accrual basis. Discounts and premiums on securities
purchased are amortized over the life of the respective securities.
Dividends and Distributions- The Fund intends to distribute
substantially all of its net investment income as dividends to its
shareholders on at least a quarterly basis. The Fund intends to
distribute its net realized long term capital gains and its net
realized short term capital gains at least once a year.
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CCMI Equity Fund
Notes to Financial Statements
November 30, 2003 (Unaudited) - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser is Commerce Capital Management, Inc. Under the terms
of the Investment Advisory Contract (the "Agreement"), subject to the
direction of the Trustees of the Trust, the Adviser provides
investment research and supervision of the investments of the Fund and
conducts a continuous program of investment evaluation and of
appropriate sale or other disposition and reinvestment of the Fund's
assets. The Agreement provides that the Fund pays all of its own
expenses and its allocable share of Trust expenses, including without
limitation, the expenses of organizing the Trust and continuing its
existence; fees and expenses of Trustees and officers of the Trust;
fees for investment advisory services and administrative personnel and
services; fees and expenses of preparing its registration statements
and any amendments thereto; expenses of registering and qualifying the
Trust, the Fund and shares ("Shares") of the Fund under Federal and
state laws and regulations; expenses of preparing, printing and
distributing prospectuses (and any amendments thereto) to current
shareholders; interest expense, taxes, fees and commissions of every
kind; expenses of issue (including cost of Share certificates),
purchase, repurchase and redemption of Shares, including expenses
attributable to a program of periodic issue; charges and expenses of
custodians, transfer agents, dividend disbursing agents, shareholder
servicing agents, and registrars; printing and mailing costs,
auditing, accounting and legal expenses; reports to shareholders and
governmental officers and commissions; expenses of meetings of
Trustees and shareholders and proxy solicitations therefore; insurance
expenses; association membership dues; and such nonrecurring items as
may arise, including all losses and liabilities incurred in
administering the Trust and the Fund. The Fund will also pay its
allocable share of such extraordinary expenses as may arise including
expenses incurred in connection with litigation, proceedings, and
claims and the legal obligations of the Trust to indemnify its
officers and Trustees and agents with respect thereto. As compensation
for its management services, the Fund is obligated to pay the Adviser
an annual fee equal to 0.85% of the average daily net assets of the
Fund. For the six months ended November 30, 2003, the Adviser earned a
fee of $420,314 from the Fund. At November 30, 2003, the Fund owed the
Adviser $62,341 for its advisory services. For the period ending May
31, 2004, the Adviser has voluntarily agreed to waive a portion of its
fees to maintain annual Fund operating expenses at 1.03%. This
voluntary waiver may be terminated at any time.
Unified Fund Services, Inc. ("Unified"), acts as the Fund's
transfer agent. A Trustee and the officers of the Trust are members of
management and/or employees of Unified. Unified maintains the records
of each shareholder's account, answers shareholders' inquiries
concerning their accounts, processes purchases and redemptions of the
Funds' shares, acts as dividend and distribution disbursing agent and
performs other transfer agent and shareholder service functions.
Unified receives a monthly fee for transfer agency services from the
Fund of $1.25 per shareholder (subject to various monthly minimum
fees, the maximum being $1,250 per month for assets of $5 million or
more).
In addition, Unified provides the Fund with fund accounting
services, which include certain monthly reports, record keeping and
other management-related services. For its services as fund
accountant, Unified receives an annual fee from the Fund equal to
0.05% of the Fund's assets up to $50 million, 0.04% of the Fund's
assets from $50 million to $100 million, 0.03% of the Fund's assets
from $100 million to $150 million, and 0.02% of the Fund's assets over
$150 million (subject to various monthly minimum fees, the maximum
being $1,667 per month for assets of $5 million or more).
Unified also provides the Fund with administrative services,
including all regulatory reporting and necessary office equipment,
personnel and facilities. Unified receives a monthly fee from the Fund
equal to an annual rate of 0.13% of the Fund's assets under $50
million, 0.10% of the Fund's assets from $50 million to $100 million,
0.08% of the Fund's assets from $100 million to $150 million, and
0.06% of the Fund's assets over $150 million (subject to a minimum fee
of $2,083 per month).
Certain Trustees and the officers of the Trust are members of
management and employees of Unified, and/or shareholders of Unified
Financial Services, Inc.
The Fund has adopted a Shareholder Services Plan. Pursuant to the
Plan, the Fund may pay Unified Fund Services Inc., up to 0.25% of
average net assets for providing shareholder services and maintaining
shareholder accounts. Unified Fund
<page>
CCMI Equity Fund
Notes to Financial Statements
November 30, 2003 (Unaudited) - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - continued
Services Inc. may select others to perform these services for
their customers and may pay fees to them. As of November 30, 2003, the
Fund paid $129,859 in fees.
NOTE 4. INVESTMENTS
For the six months ended November 30, 2003, purchases and sales
of investment securities, other than short-term investments were as
follows:
Amount
------------------
Purchases
U.S. Government Obligations $ - Other 8,849,129
Sales
U.S. Government Obligations $ - Other 4,697,059
As of November 30, 2003, the net unrealized depreciation of
investments for tax purposes were as follows:
Amount
--------------
Gross Appreciation $22,570,957
Gross (Depreciation) (3,801,372)
--------------
Net Appreciation
on Investments $18,769,585
==============
At November 30, 2003, the aggregate cost of securities, excluding
U.S. government obligations, for federal income tax purposes was
$87,494,243.
NOTE 5. ESTIMATES
Preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
NOTE 6. RELATED PARTY TRANSACTIONS
The beneficial ownership, either directly or indirectly, of 25%
or more of the voting securities of a fund creates a presumption of
control of the fund, under Section 2(a)(9) of the Investment Company
Act of 1940. As of November 30, 2003, Central Carolina Bank & Trust,
for the benefit of its customers, held over 92% of the Fund.
NOTE 7. CHANGE OF AUDITORS
On July 21, 2003, McCurdy & Associates CPA's, Inc. ("McCurdy &
Associates") was selected to replace KPMG, LLP ("KPMG") as the Fund's
independent auditor for the 2004 fiscal year. The Fund's selection of
McCurdy & Associates was recommended by the Audit Committee and was
approved by the Board of Trustees.
<page>
CCMI Equity Fund
Notes to Financial Statements
November 30, 2003 (Unaudited) - continued
NOTE 7. CHANGE OF AUDITORS - continued
KPMG's reports on the Fund's financial statements as of May 31,
2003 did not contain an adverse opinion or a disclaimer of opinion and
were not qualified or modified as to uncertainty, audit scope or
accounting principles. At the financial statements date and through
the date of the engagement of McCurdy & Associates, there were no
disagreements between the Fund and KPMG on any matter of accounting
principles or practices, financial statement disclosure, or auditing
scope or procedures, which such disagreements, if not resolved to the
satisfaction of KPMG, would have caused it to make reference to the
subject matter of the disagreement in connection with its reports on
the financial statements for such periods.
<page>
Item 2. Code of Ethics. N/A
Item 3. Audit Committee Financial Expert. N/A
Item 4. Principal Accountant Fees and Services. N/A
Item 5. Audit Committee of Listed Companies. N/A
Item 6. Reserved.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds.
N/A
Item 8. Reserved.
Item 9. Controls and Procedures.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures as of January 9, 2004, the disclosure controls and procedures are
reasonably designed to ensure that the information required in filings on Forms
N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b) There were no significant changes in the registrant's internal control
over financial reporting that occurred during the registrant's last fiscal
half-year that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
Item 10. Exhibits.
(a) N/A
(b) Certifications by the registrant's principal executive officer and
principal financial officer, pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment
Company Act of 1940 are filed herewith.
(c) Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 is filed herewith.
<page>
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) CCMI Funds
By
* /s/ Timothy Ashburn
Timothy Ashburn, President
Date 2/6/04
-------------------------------
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
* /s/ Timothy Ashburn
Timothy Ashburn, President
Date 2/6/04
-------------------------------
By
* /s/ Thomas Napurano
--------------------------------------------------------------
Thomas Napurano, Treasurer and Chief Financial Officer
Date 2/7/04
--------------------------------
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