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)
Freddie Jacobs
Unified Fund Services, Inc.
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: 11/30/04
-------------------
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. ss. 3507.
Item 1. Reports to Stockholders.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
- --------------------------------------------------------------------------------
CCMI EQUITY FUND
CCMI BOND FUND
CCMI TAX EXEMPT NORTH CAROLINA BOND FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS (UNAUDITED)
November 30, 2004
- --------------------------------------------------------------------------------
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
- --------------------------------------------------------------------------------
FUND HOLDINGS - (UNAUDITED)
CCMI EQUITY FUND PORTFOLIO HOLDINGS NOVEMBER 30, 2004 1
Common Stocks - 91.71% 91.71%
Money Market Securities - 8.07% 8.07%
Cash and other assets less liabilities - 0.22% 0.22%
1As a percent of net assets.
CCMI BOND FUND PORTFOLIO HOLDINGS NOVEMBER 30, 2004 1
Fixed Income Securities - 77.05% 77.05%
Preferred Stocks - 2.60% 2.60%
Short-Term Investments - 23.89% 23.89%
Liabilities in excess of cash & other assets - (3.54)% -3.54%
1As a percent of net assets.
1
<page>
CCMI TAX-EXEMPT NORTH CAROLINA BOND FUND PORTFOLIO HOLDINGS
NOVEMBER 30, 2004 1
Long-Term Municipals - 98.13% 98.13%
Money Market Securities - 0.52% 0.52%
Cash and other assets less liabilities - 1.35% 1.35%
1As a percent of net assets.
AVAILABILITY OF PORTFOLIO SCHEDULE - (UNAUDITED)
- ----------------------------------
The Funds file their complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Funds' Form N-Qs are available at the SEC's website at
www.sec.gov. The Funds' Form N-Qs may be reviewed and copied at the Public
Reference Room in Washington DC. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
SUMMARY OF FUNDS' EXPENSES - (UNAUDITED)
- --------------------------
As a shareholder of the Funds, you incur ongoing costs, including management
fees, distribution and/or service (12b-1) fees; and other Fund expenses. This
Example is intended to help you understand your ongoing costs (in dollars) of
investing in the Funds and to compare these costs with the ongoing costs of
investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (June 1, 2004 through November 30, 2004).
Actual Expenses
- ---------------
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
- --------------------------------------------
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Funds' actual expense
ratios and an assumed rate of return of 5% per year before expenses, which are
not the Funds' actual returns. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Funds and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
2
<page>
<table>
<s> <c> <c> <c>
- -----------------------------------------------------------------------------------------------------------
EXPENSES PAID
CCMI FUNDS BEGINNING ENDING DURING PERIOD*
ACCOUNT VALUE ACCOUNT VALUE JUNE 1, 2004 -
JUNE 1, 2004 NOVEMBER 30, 2004 NOVEMBER 30, 2004
- -----------------------------------------------------------------------------------------------------------
EQUITY FUND
Actual (2.78% return**) $ 1,000.00 $ 1,027.82 $ 5.60
Hypothetical*** $ 1,000.00 $ 1,019.55 $ 5.57
- -----------------------------------------------------------------------------------------------------------
BOND FUND
Actual (3.40% return**) $ 1,000.00 $ 1,034.02 $ 4.59
Hypothetical*** $ 1,000.00 $ 1,020.56 $ 4.56
- -----------------------------------------------------------------------------------------------------------
NC BOND FUND
Actual (3.89% return**) $ 1,000.00 $ 1,038.94 $ 3.83
Hypothetical*** $ 1,000.00 $ 1,021.31 $ 3.80
- -----------------------------------------------------------------------------------------------------------
</table>
* Expenses are equal to the Funds' annualized expense ratios, multiplied by
the average account value over the period, multiplied by 183/365 (to reflect
the one-half year period). The annualized expense ratios for the Equity
Fund, Bond Fund and the NC Bond Fund were 1.10%, 0.90%, and 0.75%,
respectively.
** Returns are with expenses and not annualized.
*** Assumes a 5% annual return before expenses.
3
<page>
CCMI FUNDS
CCMI EQUITY FUND
SCHEDULE OF INVESTMENTS - NOVEMBER 30, 2004
(UNAUDITED)
<table>
<s> <c> <c>
SHARES COMMON STOCKS - 91.71% VALUE
- -----------------------------------------------------------------------------------------
COMMUNICATIONS - 1.96%
25,000 BellSouth Corp. $ 670,500
-----------------------------------------------------------
35,000 Verizon Communications, Inc. 1,443,050
--------------------------------------------------------------------------
2,113,550
--------------------------------------------------------------------------
CONSUMER NON-DURABLES - 12.72%
30,000 Anheuser-Busch Co. 1,502,700
-----------------------------------------------------------
30,400 Cadbury Schweppes Public Ltd. Co. (a) 1,094,400
-----------------------------------------------------------
45,000 Constellation Brands, Inc. - Class A (b) 2,011,500
-----------------------------------------------------------
30,000 Energizer Holdings, Inc. (b) 1,401,000
-----------------------------------------------------------
40,000 General Mills, Inc. 1,819,600
-----------------------------------------------------------
30,000 Kraft Foods, Inc. 1,026,000
-----------------------------------------------------------
70,000 Mattel, Inc. (b) 1,326,500
-----------------------------------------------------------
35,000 PepsiCo, Inc. 1,746,850
-----------------------------------------------------------
35,000 Sealed Air Corp. (b) 1,799,350
--------------------------------------------------------------------------
13,727,900
--------------------------------------------------------------------------
CONSUMER SERVICES - 7.26%
75,000 Comcast Corp. (b) 2,223,750
-----------------------------------------------------------
15,000 Gannett Co., Inc. 1,237,350
-----------------------------------------------------------
40,000 McDonald's Corp. 1,229,600
-----------------------------------------------------------
80,000 Walt Disney Co. 2,150,400
-----------------------------------------------------------
25,000 Weight Watchers International, Inc. (b) 991,250
--------------------------------------------------------------------------
7,832,350
--------------------------------------------------------------------------
ELECTRONIC TECHNOLOGY - 5.05%
35,000 Applied Materials, Inc. (b) 582,400
-----------------------------------------------------------
75,000 Cisco Systems, Inc. (b) 1,403,250
-----------------------------------------------------------
40,000 Commscope, Inc. (b) 772,800
-----------------------------------------------------------
40,000 Electronics for Imaging, Inc. (b) 669,200
-----------------------------------------------------------
45,000 Intel Corp. 1,005,750
-----------------------------------------------------------
42,000 Texas Instruments, Inc. 1,015,560
--------------------------------------------------------------------------
5,448,960
--------------------------------------------------------------------------
ENERGY MINERALS - 5.80%
35,000 ChevronTexaco Corp. 1,911,000
-----------------------------------------------------------
22,500 ConocoPhillips Co. 2,047,275
-----------------------------------------------------------
45,000 Exxon Mobil Corp. 2,306,250
--------------------------------------------------------------------------
6,264,525
--------------------------------------------------------------------------
FINANCE - 20.21%
38,000 American Express Co. 2,116,980
-----------------------------------------------------------
26,200 American International Group, Inc. 1,659,770
-----------------------------------------------------------
50,000 Bank of America Corp. 2,313,500
-----------------------------------------------------------
1,300 Berkshire Hathaway, Inc. - Class B (b) 3,614,000
-----------------------------------------------------------
52,066 Citigroup, Inc. 2,329,954
-----------------------------------------------------------
40,100 Duke Realty Corp. 1,385,455
-----------------------------------------------------------
50,000 J.P. Morgan Chase & Co. 1,882,500
-----------------------------------------------------------
45,000 Jefferson-Pilot Corp. 2,213,550
-----------------------------------------------------------
20,000 Merrill Lynch & Co., Inc. 1,114,200
-----------------------------------------------------------
30,000 Prologis 1,206,900
-----------------------------------------------------------
48,500 Washington Mutual, Inc. 1,974,435
--------------------------------------------------------------------------
21,811,244
--------------------------------------------------------------------------
HEALTH SERVICES - 1.78%
40,000 Laboratory Corp. of America Holdings (b) 1,918,000
--------------------------------------------------------------------------
HEALTH TECHNOLOGY - 11.40%
45,000 Abbott Laboratories, Inc. 1,888,200
-----------------------------------------------------------
20,000 Amgen, Inc. (b) 1,200,800
-----------------------------------------------------------
15,000 Eli Lilly & Company 799,950
-----------------------------------------------------------
30,000 Johnson & Johnson 1,809,600
-----------------------------------------------------------
37,000 Merck & Co., Inc. 1,036,740
-----------------------------------------------------------
80,000 Pfizer, Inc. 2,221,600
-----------------------------------------------------------
65,000 Schering-Plough Corp. 1,160,250
-----------------------------------------------------------
55,000 Wyeth 2,192,850
--------------------------------------------------------------------------
12,309,990
--------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
4
<page>
CCMI FUNDS
CCMI EQUITY FUND
SCHEDULE OF INVESTMENTS - NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
<table>
<s> <c> <c>
SHARES COMMON STOCKS - 91.71% - CONTINUED VALUE
- -----------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 1.52%
25,000 Schlumberger Ltd. $ 1,640,750
--------------------------------------------------------------------------
NON-ENERGY MINERALS - 1.89%
60,000 Alcoa, Inc. 2,038,800
--------------------------------------------------------------------------
PRODUCER MANUFACTURING - 5.92%
45,000 General Electric Co. 1,591,200
-----------------------------------------------------------
85,000 Molex, Inc. - Class A (b) 2,064,650
-----------------------------------------------------------
28,000 United Technologies Corp. 2,732,240
--------------------------------------------------------------------------
6,388,090
--------------------------------------------------------------------------
RETAIL TRADE - 1.80%
40,000 Costco Wholesale Corp. 1,944,000
--------------------------------------------------------------------------
TECHNOLOGY SERVICES - 8.86%
40,000 Automatic Data Processing, Inc. 1,821,200
-----------------------------------------------------------
45,000 Diebold, Inc. 2,394,000
-----------------------------------------------------------
32,000 First Data Corp. 1,314,880
-----------------------------------------------------------
20,000 International Business Machines Corp. 1,884,800
-----------------------------------------------------------
80,000 Microsoft Corp. 2,144,800
--------------------------------------------------------------------------
9,559,680
--------------------------------------------------------------------------
TRANSPORTATION - 0.93%
12,000 United Parcel Services, Inc. 1,009,800
--------------------------------------------------------------------------
UTILITIES - 4.61%
30,000 Apache Corp. 1,621,800
-----------------------------------------------------------
45,000 Black Hills Corp. 1,381,950
-----------------------------------------------------------
30,000 Progress Energy, Inc. 1,317,300
-----------------------------------------------------------
20,000 The Southern Co. 655,800
--------------------------------------------------------------------------
4,976,850
--------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $74,744,559) 98,984,489
--------------------------------------------------------------------------
MONEY MARKET SECURITIES - 8.07%
3,912,286 Fifth Third Institutional Money Market Fund, 1.82% (c) 3,912,286
-----------------------------------------------------------
Goldman Sachs Financial Square Fund -
4,800,000 Money Market Fund, 1.86% (c) 4,800,000
--------------------------------------------------------------------------
TOTAL MONEY MARKET SECURITIES (COST $8,712,286) 8,712,286
--------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $83,456,845) - 99.78% 107,696,775
--------------------------------------------------------------------------
CASH AND OTHER ASSETS LESS LIABILITIES - 0.22% 234,822
--------------------------------------------------------------------------
TOTAL NET ASSETS - 100.00% $ 107,931,597
--------------------------------------------------------------------------
</table>
(a) American Depositary Receipt.
(b) Non-income producing.
(c) Variable rate security; the coupon rate shown represents the
rate at November 30, 2004.
See accompanying notes which are an integral part of the financial statements.
5
<page>
CCMI FUNDS
CCMI BOND FUND
SCHEDULE OF INVESTMENTS - NOVEMBER 30, 2004
(UNAUDITED)
<table>
<s> <c> <c>
PRINCIPAL
AMOUNT FIXED INCOME SECURITIES - 77.05% VALUE
- -----------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES - 0.87%
FINANCE - RETAIL - 0.87%
$ 1,000,000 Citibank Credit Card Issuance Trust, 4.15%, 7/7/2017 $ 944,501
-----------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES (COST $901,478) 944,501
-----------------------------------------------------------------------------------------------
CORPORATE BONDS - 30.48%
BANKING - 3.35%
500,000 Bank of America Corp., Sub. Note, Series NOTZ, 6.50%, 5/15/2017 504,098
--------------------------------------------------------------------------------
350,000 BankBoston Capital Trust, Company Guarantee, Series B, 8.25%, 12/15/2026 384,634
--------------------------------------------------------------------------------
1,500,000 Capital One Bank, 6.50%, 6/13/2013 1,620,946
--------------------------------------------------------------------------------
188,000 NB Capital Trust II, Company Guarantee, 7.83%, 12/15/2026 202,792
--------------------------------------------------------------------------------
1,000,000 Washington Mutual, Inc., Sub. Note, 4.625%, 4/1/2014 943,370
-----------------------------------------------------------------------------------------------
3,655,840
-----------------------------------------------------------------------------------------------
FINANCE - RETAIL - 3.11%
865,000 Commercial Credit Co., Note, 6.625%, 6/1/2015 951,813
--------------------------------------------------------------------------------
1,000,000 Household Finance Corp., Sr. Note, Series MTN, 3.39%, 2/28/2008 (a) 1,008,637
--------------------------------------------------------------------------------
166,000 Household Finance Corp., Sr. Note, Series NOT1, 7.50%, 4/15/2017 167,408
--------------------------------------------------------------------------------
1,250,000 Sallie Mae, Note, Series CPI, 4.80%, 2/1/2014 (a) 1,263,925
-----------------------------------------------------------------------------------------------
3,391,783
-----------------------------------------------------------------------------------------------
FINANCIAL INTERMEDIARIES - 2.98%
500,000 Citigroup, Inc., Note., 6.50%, 1/18/2011 555,559
--------------------------------------------------------------------------------
367,000 Citigroup, Inc., Sub. Note, 6.88%, 12/18/2015 411,159
--------------------------------------------------------------------------------
250,000 Citigroup, Inc., Sub. Note, 7.25%, 10/1/2010 286,689
--------------------------------------------------------------------------------
1,000,000 Goldman Sachs Group, Inc., Note, 6.60%, 1/15/2012 1,110,412
--------------------------------------------------------------------------------
900,000 Lehman Brothers Holdings, Inc., Note, Series MTNG, 6.75%, 7/1/2022 888,419
-----------------------------------------------------------------------------------------------
3,252,238
-----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 8.32%
1,000,000 Beneficial Corp., Note, Series MTNE, 6.47%, 11/17/2008 1,083,281
--------------------------------------------------------------------------------
250,000 CIT Capital Trust I, Company Guarantee, 7.70%, 2/15/2027 272,307
--------------------------------------------------------------------------------
1,250,000 Credit Suisse First Boston USA, Inc., Note, 6.125%, 11/15/2011 1,359,313
--------------------------------------------------------------------------------
1,000,000 General Electric Capital Corp., Sr. Note, Series MTNA, 4.00%, 10/26/2012 979,952
--------------------------------------------------------------------------------
800,000 JPM Capital Trust II, Bond, 7.95%, 2/1/2027 867,046
--------------------------------------------------------------------------------
350,000 JP Morgan & Co, Inc., Sub. Note, 5.75%, 10/15/2008 370,733
--------------------------------------------------------------------------------
1,000,000 Morgan Stanley, Note, 6.60%, 4/1/2012 1,106,216
--------------------------------------------------------------------------------
1,500,000 Morgan Stanley, Sr. Note, Series MTNC, 5.00%, 11/1/2013 (a) 1,549,920
--------------------------------------------------------------------------------
1,500,000 Morgan Stanley, Note, 3.875%, 1/15/2009 1,487,694
-----------------------------------------------------------------------------------------------
9,076,462
-----------------------------------------------------------------------------------------------
FOOD & DRUG MANUFACTURERS & RETAILERS - 2.74%
200,000 Anheuser-Busch Cos, Inc., Deb., 7.125%, 7/1/2017 219,200
--------------------------------------------------------------------------------
350,000 Archer-Daniels-Midland, Deb., 8.875%, 4/15/2011 432,515
--------------------------------------------------------------------------------
1,250,000 Coca-Cola Co., Note, 5.75%, 3/15/2011 1,343,741
--------------------------------------------------------------------------------
1,000,000 Pepsico, Inc., Note, 3.20%, 5/15/2007 994,163
-----------------------------------------------------------------------------------------------
2,989,619
-----------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS & EQUIPMENT - 0.26%
250,000 Tyco International Group, Company Guarantee, 6.75%, 2/15/2011 279,708
-----------------------------------------------------------------------------------------------
INSURANCE - 0.11%
100,000 Kemper Corp., Note, Series MTN, 8.875%, 10/17/2009 116,443
-----------------------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
6
<page>
CCMI FUNDS
CCMI BOND FUND
SCHEDULE OF INVESTMENTS - NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
<table>
<s> <c> <c>
PRINCIPAL
AMOUNT FIXED INCOME SECURITIES - 77.05% - CONTINUED VALUE
- -----------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 30.48% - CONTINUED
METALS, MINERALS & Mining - 0.78%
$ 670,000 Alcoa, Inc., Note, 6.50%, 6/1/2011 $ 747,334
--------------------------------------------------------------------------------
105,000 BHP Billiton Finance, Company Guarantee, 4.80%, 4/15/2013 105,377
-----------------------------------------------------------------------------------------------
852,711
-----------------------------------------------------------------------------------------------
PETROLEUM PRODUCTS & Services - 0.51%
505,000 Amerada Hess Corp., Note, 6.65%, 8/15/2011 552,865
-----------------------------------------------------------------------------------------------
RETAILERS - 0.23%
225,000 May Department Stores Co., Deb., 7.50%, 6/1/2015 255,229
-----------------------------------------------------------------------------------------------
SOVEREIGN - 0.92%
1,000,000 United Mexican States, Note, 5.875%, 1/15/2014 1,010,000
-----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS & Cellular - 4.59%
--------------------------------------------------------------------------------
634,000 GTE Corp., Deb., 7.90%, 2/1/2027 686,391
--------------------------------------------------------------------------------
800,000 Nynex Capital Funding Co., Company Guarantee, Series MTNB, 8.23%, 10/15/2009 918,998
--------------------------------------------------------------------------------
800,000 Southwestern Bell Telephone Co., Deb., 6.625%, 9/1/2024 804,249
--------------------------------------------------------------------------------
1,300,000 Southwestern Bell Telephone Co., Deb., 7.00%, 7/1/2015 1,472,388
--------------------------------------------------------------------------------
1,000,000 Verizon Global Funding, Note, 6.875%, 6/15/2012 1,131,749
-----------------------------------------------------------------------------------------------
5,013,775
-----------------------------------------------------------------------------------------------
UTILITIES - 2.58%
360,000 Cleveland Electric/Toledo, Note, 7.13%, 7/1/2007 389,766
--------------------------------------------------------------------------------
300,000 Indianapolis Power & Light Co., 1st Mtg. Bond, Series MBIA, 7.375%, 8/1/2007 325,818
--------------------------------------------------------------------------------
150,000 Iowa Electric Light & Power, Collateral Trust, 6.00%, 10/1/2008 160,117
--------------------------------------------------------------------------------
915,000 Mississippi Power Co., 1st Mtg. Bond, 6.875%, 12/1/2025 944,331
--------------------------------------------------------------------------------
665,000 Pennsylvania Electric Co., Sr. Note, 6.625%, 4/1/2019 743,219
--------------------------------------------------------------------------------
250,000 Virginia Electric & Power Co., 1st Ref. Mtg., Series MBI, 7.00%, 1/1/2024 256,768
-----------------------------------------------------------------------------------------------
2,820,019
-----------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (COST $32,286,553) 33,266,692
-----------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 35.34%
FEDERAL HOME LOAN BANK - 9.32%
1,000,000 Federal Home Loan Bank , Unsecd. Bond, 4.40%, 3/30/2011 992,800
--------------------------------------------------------------------------------
1,250,000 Federal Home Loan Bank , Unsecd. Bond, 5.25%, 12/10/2013 1,250,815
--------------------------------------------------------------------------------
733,333 Federal Home Loan Bank , Unsecd. Bond, Series GA17, 5.875%, 9/19/2017 733,554
--------------------------------------------------------------------------------
2,500,000 Federal Home Loan Bank , Unsecd. Bond, Series HG08, 1.99%, 3/3/2008 (a) 2,500,380
--------------------------------------------------------------------------------
1,700,000 Federal Home Loan Bank , Unsecd. Bond, Series IM13, 3.18%, 6/25/2013 (a) 1,707,730
--------------------------------------------------------------------------------
2,000,000 Federal Home Loan Bank , Unsecd. Bond, Series LU08, 2.29%, 3/24/2008 (a) 1,999,076
--------------------------------------------------------------------------------
1,000,000 Federal Home Loan Bank , Unsecd. Bond, Series MD18, 5.00%, 5/8/2018 983,845
-----------------------------------------------------------------------------------------------
10,168,200
-----------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 15.45%
3,250,000 Federal Home Loan Mortgage Corporation, Note, 4.125%, 2/24/2011 3,186,199
--------------------------------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corporation, Note, 4.50%, 12/16/2010 996,843
--------------------------------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corporation, Note, 4.65%, Series MTN, 10/10/2013 988,183
--------------------------------------------------------------------------------
1,200,000 Federal Home Loan Mortgage Corporation, Note, 5.20%, 3/5/2019 1,174,368
--------------------------------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corporation, Note, 6.25%, Series MTN, 6/25/2010 1,063,740
--------------------------------------------------------------------------------
500,000 Federal Home Loan Mortgage Corporation, Note, Series MTN, 4.65%, 8/27/2010 501,396
--------------------------------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corporation, Note, Series MTN, 5.55%, 10/30/2017 987,264
--------------------------------------------------------------------------------
1,000,000 Federal Home Loan Mortgage Corporation, Note, Series MTN, 6.00%, 6/27/2017 1,015,998
--------------------------------------------------------------------------------
700,000 Federal Home Loan Mortgage Corporation, Note, Series MTN3, 4.05%, 11/17/2009 699,871
--------------------------------------------------------------------------------
3,000,000 Federal Home Loan Mortgage Corporation, Sub. Note, 6.25%, 3/5/2012 3,138,231
--------------------------------------------------------------------------------
3,000,000 Federal Home Loan Mortgage Corporation, Sub. Note, 6.375%, 8/1/2011 3,115,062
-----------------------------------------------------------------------------------------------
16,867,155
-----------------------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
7
<page>
CCMI FUNDS
CCMI BOND FUND
SCHEDULE OF INVESTMENTS - NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
<table>
<s> <c> <c>
PRINCIPAL
AMOUNT FIXED INCOME SECURITIES - 77.05% - CONTINUED VALUE
- -----------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCIES - 35.34% - CONTINUED
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 10.57%
$ 1,000,000 Federal National Mortgage Association, Unsecd. Note, 3.25%, 2/15/2009 $ 977,878
--------------------------------------------------------------------------------
500,000 Federal National Mortgage Association, Unsecd. Note, 3.80%, 7/14/2010 489,182
--------------------------------------------------------------------------------
500,000 Federal National Mortgage Association, Unsecd. Note, 4.70%, 5/13/2013 499,644
--------------------------------------------------------------------------------
1,500,000 Federal National Mortgage Association, Unsecd. Note, 5.10%, 6/26/2018 1,451,079
--------------------------------------------------------------------------------
250,000 Federal National Mortgage Association, Unsecd. Note, 5.50%, 4/23/2024 240,992
--------------------------------------------------------------------------------
2,500,000 Federal National Mortgage Association, Unsecd. Note, 5.75%, 11/7/2017 2,449,137
--------------------------------------------------------------------------------
2,000,000 Federal National Mortgage Association, Unsecd. Note, 6.05%, 8/18/2023 1,996,068
--------------------------------------------------------------------------------
1,000,000 Federal National Mortgage Association, Unsecd. Note, 6.20%, 6/13/2017 1,043,464
--------------------------------------------------------------------------------
600,000 Federal National Mortgage Association, Unsecd. Note, 6.25%, 2/28/2017 625,157
--------------------------------------------------------------------------------
1,250,000 Federal National Mortgage Association, Unsecd. Note, Series MTN, 5.50%, 11/8/2016 1,254,398
--------------------------------------------------------------------------------
500,000 Federal National Mortgage Association, Unsecd. Sub. Note, 5.125%, 1/2/2014 505,080
-----------------------------------------------------------------------------------------------
11,532,079
-----------------------------------------------------------------------------------------------
TOTAL GOVERNMENT AGENCIES (COST $38,512,329) 38,567,434
-------------------------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - 9.70%
BANKING - 1.76%
2,000,000 Wells Fargo Mortgaged Backed Securities, 4.63%, 10/25/2033 (a) 1,919,244
-----------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.66%
1,875,820 Federal Home Loan Mortgage Corporation, Pool B15098, 5.00%, 6/1/2019 1,902,200
--------------------------------------------------------------------------------
944,842 Federal Home Loan Mortgage Corporation, Pool B15170, 5.00%, 7/1/2019 958,129
--------------------------------------------------------------------------------
39,882 Federal Home Loan Mortgage Corporation, Pool N98839, 7.00%, 5/1/2007 40,702
-----------------------------------------------------------------------------------------------
2,901,031
-----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 0.00%
63 Morgan Stanley Mortgage Loan Trust, 5.00%, 11/25/2018 59
-----------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 5.28%
310,816 Government National Mortgage Association, Pool 494081, 7.00%, 8/15/2014 331,641
--------------------------------------------------------------------------------
128,821 Government National Mortgage Association, Pool 544525, 7.00%, 5/15/2031 137,094
--------------------------------------------------------------------------------
1,097,558 Government National Mortgage Association, Pool 565504, 5.50%, 9/15/2032 1,119,180
--------------------------------------------------------------------------------
745,654 Government National Mortgage Association, Pool 606831, 5.50%, 9/15/2033 759,861
--------------------------------------------------------------------------------
972,896 Government National Mortgage Association, Pool 610956, 4.50%, 5/15/2019 975,502
--------------------------------------------------------------------------------
976,168 Government National Mortgage Association, Pool 610964, 4.50%, 5/15/2019 978,783
--------------------------------------------------------------------------------
984,578 Government National Mortgage Association, Pool 622990, 5.50%, 11/15/2033 1,003,339
--------------------------------------------------------------------------------
430,191 Government National Mortgage Association, Pool 780758, 7.00%, 4/15/2013 459,105
-----------------------------------------------------------------------------------------------
5,764,505
-----------------------------------------------------------------------------------------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $10,475,717) 10,584,839
-----------------------------------------------------------------------------------------------
LONG-TERM MUNICIPALS - 0.67%
OKLAHOMA - 0.67%
620,000 Choctaw County, OK IDA, Revenue Bonds, USA Guaranteed, 8.00%, 7/1/2012 733,943
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
TOTAL LONG-TERM MUNICIPALS (COST $701,807) 733,943
-----------------------------------------------------------------------------------------------
TOTAL FIXED INCOME SECURITIES (COST $82,877,884) 84,097,409
-----------------------------------------------------------------------------------------------
SHARES PREFERRED STOCKS - 2.60%
- ----------------
BANKING - 0.09%
4,000 UBS Preferred Funding Trust IV, Pfd. 99,560
-----------------------------------------------------------------------------------------------
FINANCIAL INTERMEDIARIES - 0.92%
22,700 Merrill Lynch Preferred Capital Trust V, Perpetual Series, Pfd. 618,575
--------------------------------------------------------------------------------
15,800 Wells Fargo Capital Trust VIII, Pfd. 388,522
-----------------------------------------------------------------------------------------------
1,007,097
-----------------------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
8
<page>
CCMI FUNDS
CCMI BOND FUND
SCHEDULE OF INVESTMENTS - NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
<table>
<s> <c> <c>
SHARES FIXED INCOME SECURITIES - 77.06% - CONTINUED VALUE
- -----------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 2.60% - CONTINUED
FINANCIAL SERVICES - 1.30%
31,000 ABN Amro Capital Funding Trust VII, Pfd. $ 770,350
--------------------------------------------------------------------------------
15,000 BAC Capital Trust III, Pfd. 397,950
--------------------------------------------------------------------------------
10,150 Citigroup Capital IX, Pfd 251,720
-----------------------------------------------------------------------------------------------
1,420,020
-----------------------------------------------------------------------------------------------
INSURANCE - 0.16%
6,400 ING Groep N.V., Pfd. 170,496
-----------------------------------------------------------------------------------------------
SOVEREIGN AGENCY - 0.13%
5,500 Tennessee Valley Authority, Series D, Pfd 139,425
-----------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (COST $2,754,345) 2,836,598
-----------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 23.89%
DISCOUNT NOTES - 13.28%
9,500,000 Federal National Mortgage Association, 12/1/2004 9,500,000
--------------------------------------------------------------------------------
5,000,000 Federal National Mortgage Association, 12/3/2004 4,999,363
-----------------------------------------------------------------------------------------------
TOTAL DISCOUNT NOTES (COST $14,499,363) 14,499,363
-----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 4.68%
5,107,000 Citigroup Repurchase Agreement, Purchased 9/23/2004, 1.80% (a)
(Collateralized by US Treasury, 3.50%, 8/15/2009, Market Value $5,179,817) 5,107,000
-----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS (COST $5,107,000) 5,107,000
-----------------------------------------------------------------------------------------------
MONEY MARKET SECURITIES - 5.93%
3,466,665 Fifth Third Institutional Money Market Fund, 1.82% (b) 3,466,665
--------------------------------------------------------------------------------
3,000,000 Goldman Sachs Financial Square Money Market Fund, 1.86% (b) 3,000,000
-----------------------------------------------------------------------------------------------
TOTAL MONEY MARKET SECURITIES (COST $6,466,665) 6,466,665
-----------------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $26,073,028) 26,073,028
-----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 103.54% (COST $111,705,257) 113,007,035
-----------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF CASH & OTHER ASSETS - (3.54)% (3,868,354)
-----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.00% $ 109,138,681
-----------------------------------------------------------------------------------------------
</table>
(a) Security held as collateral for US Treasuries sold short. The repurchase
date is open.
(b) Variable rate security, rate shown is as of November 30, 2004.
See accompanying notes which are an integral part of the financial statements.
9
<page>
CCMI FUNDS
CCMI BOND FUND
SCHEDULE OF INVESTMENTS - NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
<table>
<s> <c> <c>
PRINCIPAL
AMOUNT SECURITIES HELD AS SHORT POSITIONS VALUE
- -----------------------------------------------------------------------------------------------------------------
$ (5,000,000) U.S. Treasury Note, 3.50%, 8/15/2009 $ (4,965,040)
-----------------------------------------------------------------------------------------------
TOTAL SECURITIES HELD AS SHORT POSITIONS (PROCEEDS $4,962,295) $ (4,965,040)
-----------------------------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
10
<page>
CCMI FUNDS
CCMI TAX-EXEMPT NORTH CAROLINA BOND FUND
SCHEDULE OF INVESTMENTS - NOVEMBER 30, 2004
(UNAUDITED)
<table>
<s> <c> <c>
PRINCIPAL
AMOUNT LONG-TERM MUNICIPALS - 98.13% VALUE
- --------------------------------------------------------------------------------------------------------------
CERTIFICATES OF PARTICIPATION - 28.79%
$ 500,000 Brunswick County, NC, 5.00%, 4/1/2019 $ 532,565
-----------------------------------------------------------------------------
330,000 Buncombe County, NC, 5.00%, 10/1/2015 359,703
-----------------------------------------------------------------------------
585,000 Buncombe County, NC, 5.25%, 10/1/2017 640,271
-----------------------------------------------------------------------------
500,000 Burlington, NC, 5.00%, 4/1/2019 534,560
-----------------------------------------------------------------------------
500,000 Cary, NC, 5.00%, 12/1/2016 534,980
-----------------------------------------------------------------------------
500,000 Charlotte, NC, 5.00%, 6/1/2018 529,430
-----------------------------------------------------------------------------
830,000 Dare County, NC, 5.00%, 6/1/2023 867,242
-----------------------------------------------------------------------------
950,000 Forsyth County, NC, 5.00%, 10/1/2015 1,021,725
-----------------------------------------------------------------------------
500,000 Iredell County, NC, 4.00%, 10/1/2016 504,055
-----------------------------------------------------------------------------
500,000 Iredell County, NC, 5.25%, 10/1/2020 546,850
-----------------------------------------------------------------------------
500,000 New Hanover County, NC, 5.00%, 3/1/2020 533,115
-----------------------------------------------------------------------------
500,000 North Carolina State, 4.50%, 6/1/2022 500,380
-----------------------------------------------------------------------------
500,000 Pitt County, NC, 5.30%, 4/1/2021 537,425
-----------------------------------------------------------------------------
590,000 Raleigh, NC, 4.75%, 6/1/2025 594,036
-----------------------------------------------------------------------------
500,000 Randolph County, NC, 5.00%, 6/1/2016 548,545
-----------------------------------------------------------------------------
500,000 Rockingham, NC, 5.00%, 4/1/2018 532,900
-----------------------------------------------------------------------------
400,000 Union County, NC, 5.00%, 6/1/2017 427,972
-----------------------------------------------------------------------------
520,000 Wilmington, NC, 5.00%, 9/1/2014 575,754
-----------------------------------------------------------------------------
500,000 Wilmington, NC, 5.35%, 6/1/2024 530,640
-----------------------------------------------------------------------------
1,000,000 Winston-Salem, NC, 5.00%, 6/1/2016 1,066,200
---------------------------------------------------------------------------------------------
11,918,348
---------------------------------------------------------------------------------------------
CORRECTIONAL FACILITIES - 2.49%
500,000 North Carolina Infrastructure Finance Corp., 3.00%, 2/1/2010 496,205
-----------------------------------------------------------------------------
500,000 North Carolina Infrastructure Finance Corp., 5.00%, 10/1/2017 533,020
---------------------------------------------------------------------------------------------
1,029,225
---------------------------------------------------------------------------------------------
EDUCATION - 13.21%
500,000 Catawba College, 1.68%, 10/1/2021 (a) 500,000
-----------------------------------------------------------------------------
500,000 North Carolina A&T State University, 5.25%, 6/1/2020 534,295
-----------------------------------------------------------------------------
500,000 North Carolina State University, NC, 5.00%, 10/1/2014 551,715
-----------------------------------------------------------------------------
500,000 North Carolina State University, NC, 5.125%, 12/15/2016 532,155
-----------------------------------------------------------------------------
500,000 North Carolina State, 5.00%, 4/1/2014 545,445
-----------------------------------------------------------------------------
400,000 Trinity Episcopal School, 1.68%, 9/1/2024 (a) 400,000
-----------------------------------------------------------------------------
600,000 University of North Carolina, NC, 0.00%, 8/01/2017 340,704
-----------------------------------------------------------------------------
400,000 University, NC, 5.375%, 4/01/2021 436,912
-----------------------------------------------------------------------------
500,000 University, NC, 5.375%, 4/01/2022 547,195
-----------------------------------------------------------------------------
500,000 University, NC, 5.40%, 5/15/2016 546,800
-----------------------------------------------------------------------------
500,000 Winston-Salem State University, 4.85%, 1/1/2011 534,890
---------------------------------------------------------------------------------------------
5,470,111
---------------------------------------------------------------------------------------------
GENERAL OBLIGATION - 26.82%
620,000 Apex, NC, 2.00%, 2/1/2006 619,076
-----------------------------------------------------------------------------
500,000 Brunswick County, NC, 3.25%, 2/1/2014 478,500
-----------------------------------------------------------------------------
500,000 Brunswick County, NC, 5.25%, 4/1/2022 541,750
-----------------------------------------------------------------------------
650,000 Burlington, NC, 5.20%, 2/1/2013 709,885
-----------------------------------------------------------------------------
500,000 Carteret County, NC, 3.50%, 5/1/2016 474,065
-----------------------------------------------------------------------------
500,000 Cary, NC, 4.00%, 6/1/2016 501,790
-----------------------------------------------------------------------------
300,000 Charlotte, NC, 5.25%, 2/1/2020 322,161
-----------------------------------------------------------------------------
500,000 Chatham County, NC, 4.00%, 4/1/2015 508,455
-----------------------------------------------------------------------------
500,000 Craven County, NC, 3.00%, 6/1/2010 497,740
-----------------------------------------------------------------------------
500,000 Durham County, NC, 4.25%, 5/1/2016 509,710
-----------------------------------------------------------------------------
435,000 Durham County, NC, 4.50%, 5/1/2023 435,979
-----------------------------------------------------------------------------
500,000 Durham, NC, 5.00%, 2/1/2007 529,485
-----------------------------------------------------------------------------
500,000 Emerald Isle, NC, 2.75%, 2/1/2005 500,725
-----------------------------------------------------------------------------
500,000 Emerald Isle, NC, 2.75%, 2/1/2010 493,110
-----------------------------------------------------------------------------
600,000 Haywood County, NC, 4.40%, 6/1/2020 606,036
-----------------------------------------------------------------------------
500,000 New Hanover County, NC, 5.00%, 6/1/2020 532,520
-----------------------------------------------------------------------------
500,000 North Carolina State, 4.50%, 5/1/2019 510,520
-----------------------------------------------------------------------------
500,000 North Carolina State, 4.75%, 3/1/2015 536,380
-----------------------------------------------------------------------------
350,000 Orange County, NC, 4.25%, 2/1/2019 351,040
-----------------------------------------------------------------------------
</table>
See accompanying notes which are an integral part of the financial statements.
11
<page>
CCMI FUNDS
CCMI TAX-EXEMPT NORTH CAROLINA BOND FUND
SCHEDULE OF INVESTMENTS - NOVEMBER 30, 2004
(UNAUDITED)
<table>
<s> <c> <c>
PRINCIPAL
AMOUNT LONG-TERM MUNICIPALS - 98.13% - CONTINUED VALUE
- --------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION - 26.82% - CONTINUED
$ 250,000 Orange County, NC, 4.50%, 2/1/2022 $ 251,480
-----------------------------------------------------------------------------
250,000 Orange County, NC, 4.625%, 2/1/2023 252,872
-----------------------------------------------------------------------------
450,000 Pender County, NC, 5.10%, 6/1/2005 456,939
-----------------------------------------------------------------------------
500,000 Randolph County, NC, 3.00%, 6/1/2012 486,220
---------------------------------------------------------------------------------------------
11,106,438
---------------------------------------------------------------------------------------------
HEALTHCARE - 6.96%
500,000 Charlotte-Mecklenberg Hospital Authority, NC, 5.00%, 1/15/2013 526,025
-----------------------------------------------------------------------------
500,000 Charlotte-Mecklenberg Hospital Authority, NC, 5.00%, 1/15/2016 530,070
-----------------------------------------------------------------------------
200,000 New Hanover Regional Medical Center, 5.30%, 10/1/2006 210,526
-----------------------------------------------------------------------------
500,000 North Carolina Community Health Care, NC, 5.00%, 11/1/2017 531,025
-----------------------------------------------------------------------------
500,000 North Carolina Community Health Care, NC, 5.00%, 11/1/2018 525,665
-----------------------------------------------------------------------------
500,000 Wake County Hospital, NC, 5.125%, 10/1/2013 558,290
---------------------------------------------------------------------------------------------
2,881,601
---------------------------------------------------------------------------------------------
TRANSPORTATION - 1.97%
250,000 Raleigh-Durham Airport Authority, NC, 5.25%, 11/1/2014 272,410
-----------------------------------------------------------------------------
500,000 Raleigh-Durham Airport Authority, NC, 5.25%, 11/1/2017 542,740
---------------------------------------------------------------------------------------------
815,150
---------------------------------------------------------------------------------------------
UTILITIES - 17.89%
500,000 Charlotte, NC Water & Sewer Systems, 5.25%, 6/1/2015 540,160
-----------------------------------------------------------------------------
500,000 Charlotte, NC Water & Sewer Systems, 5.50%, 6/1/2014 551,015
-----------------------------------------------------------------------------
500,000 Durham County, NC Enterprise System, 3.00%, 6/1/2005 502,570
-----------------------------------------------------------------------------
385,000 Greensboro, NC Enterprise Systems, 5.00%, 6/1/2005 390,690
-----------------------------------------------------------------------------
500,000 Mooresville, NC Enterprise System, 5.00%, 5/1/2019 531,725
-----------------------------------------------------------------------------
500,000 North Carolina Eastern Municipal Power Agency, 5.375%, 1/1/2016 526,915
-----------------------------------------------------------------------------
500,000 North Carolina Eastern Municipal Power Agency, 5.70%, 1/1/2015 540,620
-----------------------------------------------------------------------------
500,000 North Carolina Municipal Power Agency, 5.50%, 1/1/2015 570,600
-----------------------------------------------------------------------------
500,000 Raleigh, NC Enterprise System, 5.25%, 3/1/2017 541,380
-----------------------------------------------------------------------------
500,000 Salisbury, NC Enterprise System, 5.00%, 2/1/2020 529,850
-----------------------------------------------------------------------------
535,000 Union County, NC Enterprise System, 5.00%, 6/1/2017 574,232
-----------------------------------------------------------------------------
500,000 Wilson, NC Combined Enterprise System, 5.25%, 12/1/2018 541,690
-----------------------------------------------------------------------------
500,000 Winston-Salem, NC Water & Sewer System, 5.00%, 6/1/2019 529,445
-----------------------------------------------------------------------------
270,000 Winston-Salem, NC Water & Sewer System, 5.50%, 6/1/2015 307,670
-----------------------------------------------------------------------------
200,000 Winston-Salem, NC Water & Sewer System, 5.50%, 6/1/2016 227,904
---------------------------------------------------------------------------------------------
7,406,466
---------------------------------------------------------------------------------------------
TOTAL LONG-TERM MUNICIPALS (COST $40,567,494) 40,627,339
---------------------------------------------------------------------------------------------
SHARES MONEY MARKET SECURITIES - 0.52%
- ---------------
215,898 Fifth Third Institutional Money Market Fund, 1.82% (a) 215,898
---------------------------------------------------------------------------------------------
TOTAL MONEY MARKET SECURITIES (COST $215,898) 215,898
---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 98.65% (COST $40,783,392) 40,843,237
---------------------------------------------------------------------------------------------
CASH AND OTHER ASSETS LESS LIABILITIES - 1.35% 559,867
---------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.00% $ 41,403,104
---------------------------------------------------------------------------------------------
</table>
(a) Variable rate security, rate shown is as of November 30, 2004.
See accompanying notes which are an integral part of the financial statements.
12
<page>
CCMI FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
NOVEMBER 30, 2004
(UNAUDITED)
<table>
<s> <c> <c> <c>
CCMI
TAX EXEMPT
CCMI EQUITY CCMI BOND NORTH CAROLINA
FUND FUND BOND FUND
--------------- --------------- ---------------
ASSETS
Investments in securities:
- -------------------------------------------------------------
At cost $ 83,456,845 $ 111,705,257 $ 40,783,392
=============== =============== ===============
- -------------------------------------------------------------
At value $ 107,696,775 $ 113,007,035 $ 40,843,237
- -------------------------------------------------------------
Cash - 2 -
- -------------------------------------------------------------
Interest receivable 12,800 1,153,313 565,519
- -------------------------------------------------------------
Dividends receivable 423,235 5,159 -
- -------------------------------------------------------------
Receivable for investments sold - 3,270,038 -
- -------------------------------------------------------------
Receivable for fund shares sold 447 - 35,000
- -------------------------------------------------------------
Prepaid expenses 12,565 22,638 1,107
- ------------------------------------------------------------- --------------- --------------- ---------------
TOTAL ASSETS 108,145,822 117,458,185 41,444,863
- ------------------------------------------------------------- --------------- --------------- ---------------
LIABILITIES
Securities sold short (Proceeds $4,962,295) - 4,965,040 -
- -------------------------------------------------------------
Interest payable on securities sold short - 33,550 -
- -------------------------------------------------------------
Accrued advisory fees 59,669 40,525 12,137
- -------------------------------------------------------------
Accrued trustee & officers fees 4,762 8,000 2,624
- -------------------------------------------------------------
Redemptions payable 86,490 20,000 -
- -------------------------------------------------------------
Accrued expenses 63,304 30,437 26,998
- -------------------------------------------------------------
Payable for investments purchased - 3,221,952 -
- ------------------------------------------------------------- --------------- --------------- ---------------
TOTAL LIABILITIES 214,225 8,319,504 41,759
- ------------------------------------------------------------- --------------- --------------- ---------------
NET ASSETS $ 107,931,597 $ 109,138,681 $ 41,403,104
- ------------------------------------------------------------- --------------- --------------- ---------------
NET ASSETS CONSIST OF:
Paid in capital 80,058,133 108,492,278 41,351,395
- -------------------------------------------------------------
Accumulated undistributed net investment income (loss) 418,701 (16,798) 298
- -------------------------------------------------------------
Accumulated net realized gain (loss) on investments 3,214,833 (635,832) (8,434)
- -------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments 24,239,930 1,299,033 59,845
- ------------------------------------------------------------- --------------- --------------- ---------------
Net Assets $ 107,931,597 $ 109,138,681 $ 41,403,104
- ------------------------------------------------------------- --------------- --------------- ---------------
Shares outstanding (unlimited number authorized) 7,195,455 10,684,640 4,144,332
- ------------------------------------------------------------- --------------- --------------- ---------------
NET ASSET VALUE,
offering and redemption price per share $ 15.00 $ 10.21 $ 9.99
- ------------------------------------------------------------- --------------- --------------- ---------------
</table>
See accompanying notes which are an integral part of the financial statements.
13
<page>
CCMI FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2004
(UNAUDITED)
<table>
<s> <c> <c> <c>
CCMI
TAX EXEMPT
CCMI EQUITY CCMI BOND NORTH CAROLINA
FUND FUND BOND FUND
--------------- ---------------- ---------------
INVESTMENT INCOME
Dividend income $ 1,098,921 $ 127,039 $ -
- ----------------------------------------------------------------
Interest income 51,010 2,547,130 (a) 746,534
- ---------------------------------------------------------------- --------------- ---------------- ---------------
Total Income 1,149,931 2,674,169 746,534
- ---------------------------------------------------------------- --------------- ---------------- ---------------
EXPENSES
Investment adviser fee 453,871 331,236 79,578
- ----------------------------------------------------------------
Shareholder servicing fees 131,177 139,936 -
- ----------------------------------------------------------------
Administration expenses 59,065 62,328 25,863
- ----------------------------------------------------------------
Fund accounting expenses 26,345 35,593 17,391
- ----------------------------------------------------------------
Legal expenses 15,356 6,685 6,001
- ----------------------------------------------------------------
Registration expenses 15,162 7,521 2,920
- ----------------------------------------------------------------
Auditing expenses 11,328 7,521 4,000
- ----------------------------------------------------------------
Transfer agent expenses 11,263 11,344 10,684
- ----------------------------------------------------------------
Custodian expenses 11,013 6,017 3,229
- ----------------------------------------------------------------
Trustee & officer expenses 5,320 5,238 5,374
- ----------------------------------------------------------------
Printing expenses 3,633 7,187 500
- ----------------------------------------------------------------
Insurance expenses 1,169 1,169 765
- ----------------------------------------------------------------
Miscellaneous expenses 1,053 2,957 1,333
--------------- ---------------- ---------------
- ----------------------------------------------------------------
TOTAL EXPENSES 745,755 624,732 157,638
- ----------------------------------------------------------------
Expenses waived by Adviser (96,114) (83,962) (8,398)
- ----------------------------------------------------------------
Shareholder service fee reimbursed by Adviser (54,659) (37,335) -
- ---------------------------------------------------------------- --------------- ---------------- ---------------
NET EXPENSES 594,982 503,435 149,240
- ---------------------------------------------------------------- --------------- ---------------- ---------------
NET INVESTMENT INCOME 554,949 2,170,734 597,294
- ---------------------------------------------------------------- --------------- ---------------- ---------------
REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ----------------------------------------------------------------
Net realized gain (loss) on investment securities 1,186,548 (633,590) (8,434)
- ----------------------------------------------------------------
Change in net unrealized appreciation (depreciation)
on investment securities 1,178,147 2,339,348 923,520
- ----------------------------------------------------------------- --------------- ---------------- ---------------
Net realized and unrealized gain (loss) on investment securities 2,364,695 1,705,758 915,086
- ---------------------------------------------------------------- --------------- ---------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,919,644 $ 3,876,492 $ 1,512,380
- ---------------------------------------------------------------- --------------- ---------------- ---------------
</table>
(a) Includes interest expense on securities sold short of $116,393.
See accompanying notes which are an integral part of the financial statements.
14
<page>
CCMI FUNDS
CCMI EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<table>
<s> <c> <c>
SIX MONTHS ENDED
NOVEMBER 30, 2004 YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) MAY 31, 2004
--------------------- --------------------
OPERATIONS
Net investment income $ 554,949 $ 637,779
- -----------------------------------------------------------------------------
Net realized gain on investment securities 1,186,548 2,420,803
- -----------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) 1,178,147 12,395,112
- ----------------------------------------------------------------------------- --------------------- --------------------
Net increase in net assets resulting from operations 2,919,644 15,453,694
- ----------------------------------------------------------------------------- --------------------- --------------------
DISTRIBUTIONS
- -----------------------------------------------------------------------------
From net investment income (269,302) (625,155)
- -----------------------------------------------------------------------------
From net realized gain - -
- ----------------------------------------------------------------------------- --------------------- --------------------
Total distributions (269,302) (625,155)
- ----------------------------------------------------------------------------- --------------------- --------------------
CAPITAL SHARE TRANSACTIONS
- -----------------------------------------------------------------------------
Proceeds from shares sold 5,844,554 25,331,592
- -----------------------------------------------------------------------------
Reinvestment of distributions 29,331 63,488
- -----------------------------------------------------------------------------
Cost of shares redeemed (11,282,873) (22,207,673)
- ----------------------------------------------------------------------------- --------------------- --------------------
Net increase (decrease) in net assets resulting
from share transactions (5,408,988) 3,187,407
----------------------------------------------------------------------------- --------------------- --------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (2,758,646) 18,015,946
- ----------------------------------------------------------------------------- --------------------- --------------------
NET ASSETS
Beginning of year 110,690,243 92,674,297
- ----------------------------------------------------------------------------- --------------------- --------------------
End of year $ 107,931,597 $ 110,690,243
- ----------------------------------------------------------------------------- --------------------- --------------------
Accumulated net investment income $ 418,701 $ 133,055
- ----------------------------------------------------------------------------- --------------------- --------------------
CAPITAL SHARE TRANSACTIONS
Shares sold 400,752 1,835,717
- -----------------------------------------------------------------------------
Shares issued in reinvestment of distributions 1,990 4,592
- -----------------------------------------------------------------------------
Shares repurchased (772,305) (1,582,619)
- ----------------------------------------------------------------------------- --------------------- --------------------
Net increase (decrease) from capital share transactions (369,563) 257,690
- ----------------------------------------------------------------------------- --------------------- --------------------
</table>
See accompanying notes which are an integral part of the financial statements.
15
<page>
CCMI FUNDS
CCMI BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
<table>
<s> <c> <c>
SIX MONTHS ENDED
NOVEMBER 30, 2004 YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) MAY 31, 2004
-------------------- --------------
OPERATIONS
Net investment income $ 2,170,734 $ 4,720,716
- ---------------------------------------------------------------------------------
Net realized gain (loss) on investment securities (633,590) 270,038
- ---------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on investment securities 2,339,348 (7,290,846)
-------------------------------------------------------------------------------- -------------------- --------------
Net increase (decrease) in net assets resulting from operations 3,876,492 (2,300,092)
- --------------------------------------------------------------------------------- -------------------- --------------
DISTRIBUTIONS
- ---------------------------------------------------------------------------------
From net investment income (2,191,723) (4,742,488)
- ---------------------------------------------------------------------------------
From net realized gain - (1,415,496)
- --------------------------------------------------------------------------------- -------------------- --------------
Total distributions (2,191,723) (6,157,984)
- --------------------------------------------------------------------------------- -------------------- --------------
CAPITAL SHARE TRANSACTIONS
- ---------------------------------------------------------------------------------
Proceeds from shares sold 6,479,174 25,168,526
- ---------------------------------------------------------------------------------
Reinvestment of distributions 2,380 1,420,240
- ---------------------------------------------------------------------------------
Cost of shares redeemed (11,861,986) (20,164,898)
- --------------------------------------------------------------------------------- -------------------- --------------
Net increase (decrease) in net assets resulting
from share transactions (5,380,432) 6,423,868
- --------------------------------------------------------------------------------- -------------------- --------------
TOTAL (DECREASE) IN NET ASSETS (3,695,663) (2,034,208)
- --------------------------------------------------------------------------------- -------------------- --------------
NET ASSETS
Beginning of period 112,834,344 114,868,552
- --------------------------------------------------------------------------------- -------------------- --------------
End of period $ 109,138,681 $112,834,344
- --------------------------------------------------------------------------------- -------------------- --------------
Accumulated net investment income (loss) $ (16,798) $ 4,192
- --------------------------------------------------------------------------------- -------------------- --------------
CAPITAL SHARE TRANSACTIONS
Shares sold 635,280 2,401,593
- ---------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 233 137,486
- ---------------------------------------------------------------------------------
Shares repurchased (1,161,387) (1,940,102)
- --------------------------------------------------------------------------------- -------------------- --------------
Net increase (decrease) from capital share transactions (525,874) 598,977
- --------------------------------------------------------------------------------- -------------------- --------------
</table>
See accompanying notes which are an integral part of the financial statements.
16
<page>
CCMI FUNDS
CCMI TAX-EXEMPT NORTH CAROLINA BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
<table>
<s> <c> <c>
SIX MONTHS ENDED
NOVEMBER 30, 2004 PERIOD ENDED
INCREASE IN NET ASSETS (UNAUDITED) MAY 31, 2004 (a)
------------------- ---------------
OPERATIONS
Net investment income $ 597,294 $ 251,142
- --------------------------------------------------------------------------------
Net realized gain (loss) on investment securities (8,434) -
- --------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on investment securities 923,520 (863,675)
- -------------------------------------------------------------------------------- ------------------- ---------------
Net increase (decrease) in net assets resulting from operations 1,512,380 (612,533)
- -------------------------------------------------------------------------------- ------------------- ---------------
DISTRIBUTIONS
From net investment income (596,996) (251,404)
- --------------------------------------------------------------------------------
From net realized gain - -
- -------------------------------------------------------------------------------- ------------------- ---------------
Total distributions (596,996) (251,404)
- -------------------------------------------------------------------------------- ------------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 10,014,065 35,212,835
- --------------------------------------------------------------------------------
Reinvestment of distributions - -
- --------------------------------------------------------------------------------
Cost of shares redeemed (2,283,393) (1,591,850)
- -------------------------------------------------------------------------------- ------------------- ---------------
Net increase in net assets resulting
from share transactions 7,730,672 33,620,985
- -------------------------------------------------------------------------------- ------------------- ---------------
TOTAL INCREASE IN NET ASSETS 8,646,056 32,757,048
- -------------------------------------------------------------------------------- ------------------- ---------------
NET ASSETS
Beginning of period 32,757,048 -
- -------------------------------------------------------------------------------- ------------------- ---------------
End of period $ 41,403,104 $ 32,757,048
- -------------------------------------------------------------------------------- ------------------- ---------------
Accumulated net investment income $ 298 $ -
- -------------------------------------------------------------------------------- ------------------- ---------------
CAPITAL SHARE TRANSACTIONS
Shares sold 1,017,078 3,516,773
- --------------------------------------------------------------------------------
Shares issued in reinvestment of distributions - -
- --------------------------------------------------------------------------------
Shares repurchased (230,408) (159,111)
- -------------------------------------------------------------------------------- ------------------- ---------------
Net increase from capital share transactions 786,670 3,357,662
- -------------------------------------------------------------------------------- ------------------- ---------------
</table>
(a) For the period January 8, 2004 (commencement of operations) to May 31, 2004.
See accompanying notes which are an integral part of the financial statements.
17
<page>
CCMI FUNDS
CCMI EQUITY FUND
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<table>
<s> <c> <c> <c> <c> <c> <c>
SIX MONTHS ENDED
NOVEMBER 30, 2004 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
(UNAUDITED) MAY 31, 2004 MAY 31, 2003(a) MAY 31, 2002 MAY 31, 2001 MAY 31, 2000
-------------- --------------- --------------- -------------- -------------- ---------------
SELECTED PER SHARE DATA
- ---------------------------------
Net asset value, beginning of year $ 14.63 $ 12.68 $ 13.79 $ 16.17 $ 21.15 $ 21.74
- --------------------------------- ------------- --------------- --------------- -------------- -------------- ---------------
Income from investment operations
- -------------------------------
Net investment income 0.08 0.08 0.10 0.07 0.07 0.08
- -------------------------------
Net realized and unrealized
gain (loss) 0.33 1.95 (1.03) (1.89) (1.88) 3.27
- -------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
Total from investment operations 0.41 2.03 (0.93) (1.82) (1.81) 3.35
- -------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
- ---------------------------------
From net investment income (0.04) (0.08) (0.09) (0.06) (0.08) (0.08)
- ---------------------------------
From net realized gain - - (0.09) (0.50) (3.09) (3.86)
- ------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
Total distributions (0.04) (0.08) (0.18) (0.56) (3.17) (3.94)
- ------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
- --------------------------------
Net asset value, end of year $ 15.00 $ 14.63 $ 12.68 $ 13.79 $ 16.17 $ 21.15
- -------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
TOTAL RETURN 2.78% (b) 16.07% -6.55% -11.46% -9.30% 16.12%
- ------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $ 107,932 $ 110,690 $ 92,674 $ 104,248 $ 70,238 $ 93,870
- ------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
Ratio of expenses to average
net assets 1.10% (c) 1.13% 1.20% 1.19% 1.17% 1.09%
- ------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
Ratio of net investment income to
average net assets 1.03% (c) 0.60% 0.81% 0.50% 0.34% 0.38%
- ------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
Expense waiver/reimbursement (d) 0.28% (c) 0.28% 0.32% 0.28% 0.28% 0.25%
- ------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
Portfolio turnover rate 6% 22% 24% 36% 44% 42%
- ------------------------------- -------------- --------------- --------------- -------------- -------------- ---------------
</table>
(a) This and previous years were audited by other auditors.
(b) Not annualized.
(c) Annualized
(d) 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.
18
<page>
CCMI FUNDS
CCMI BOND FUND
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<table>
<s> <c> <c> <c>
SIX MONTHS ENDED
NOVEMBER 30, 2004 YEAR ENDED PERIOD ENDED
(UNAUDITED) MAY 31, 2004 MAY 31, 2003 (a) (b)
------------------- ---------------- ----------------
SELECTED PER SHARE DATA
- ---------------------------------------------------------
Net asset value, beginning of period $ 10.07 $ 10.82 $ 10.00
- --------------------------------------------------------- ------------------- ---------------- ----------------
Income from investment operations
- ---------------------------------------------------------
Net investment income 0.20 0.42 0.44
- ---------------------------------------------------------
Net realized and unrealized gain (loss) 0.14 (0.62) 0.83
- --------------------------------------------------------- ------------------- ---------------- ----------------
Total from investment operations 0.34 (0.20) 1.27
- --------------------------------------------------------- ------------------- ---------------- ----------------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
- ---------------------------------------------------------
From net investment income (0.20) (0.42) (0.44)
- ---------------------------------------------------------
From net realized gain - (0.13) (0.01)
- --------------------------------------------------------- ------------------- ---------------- ----------------
Total distributions (0.20) (0.55) (0.45)
- --------------------------------------------------------- ------------------- ---------------- ----------------
Net asset value, end of period $ 10.21 $ 10.07 $ 10.82
- --------------------------------------------------------- ------------------- ---------------- ----------------
TOTAL RETURN 3.40% (c) -1.84% 12.97% (c)
- --------------------------------------------------------- ------------------- ---------------- ----------------
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $ 109,139 $ 112,834 $ 114,869
- --------------------------------------------------------- ------------------- ---------------- ----------------
Ratio of expenses to average net assets 0.90% (d) 0.82% 0.85% (d)
- --------------------------------------------------------- ------------------- ---------------- ----------------
Ratio of net investment income to
average net assets 3.89% (d) 4.07% 4.73% (d)
- --------------------------------------------------------- ------------------- ---------------- ----------------
Expense waiver/reimbursement (e) 0.22% (d) 0.22% 0.12% (d)
- --------------------------------------------------------- ------------------- ---------------- ----------------
Portfolio turnover rate 37% 92% 64%
- --------------------------------------------------------- ------------------- ---------------- ----------------
</table>
(a) For the period July 1, 2002 (commencement of operations) through May 31,
2003.
(b) This period was audited by other auditors.
(c) Not annualized.
(d) Annualized.
(e) 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.
19
<page>
CCMI FUNDS
CCMI TAX-EXEMPT NORTH CAROLINA BOND FUND
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<table>
<s> <c> <c>
SIX MONTHS ENDED
NOVEMBER 30, 2004 PERIOD ENDED
(UNAUDITED) MAY 31, 2004 (a)
---------------------- ----------------------
SELECTED PER SHARE DATA
- ----------------------------------------------------------------------
Net asset value, beginning of period $ 9.76 $ 10.00
- ---------------------------------------------------------------------- ---------------------- ----------------------
Income from investment operations
- ----------------------------------------------------------------------
Net investment income 0.15 0.09
- ----------------------------------------------------------------------
Net realized and unrealized gain (loss) 0.23 (0.24)
- ---------------------------------------------------------------------- ---------------------- ----------------------
Total from investment operations 0.38 (0.15)
- ---------------------------------------------------------------------- ---------------------- ----------------------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
- ----------------------------------------------------------------------
From net investment income (0.15) (0.09)
- ----------------------------------------------------------------------
From net realized gain - -
- ---------------------------------------------------------------------- ---------------------- ----------------------
Total distributions (0.15) (0.09)
- ---------------------------------------------------------------------- ---------------------- ----------------------
Net asset value, end of period $ 9.99 $ 9.76
- ---------------------------------------------------------------------- ---------------------- ----------------------
TOTAL RETURN 3.89% (c) -1.52% (b) (c)
- ---------------------------------------------------------------------- ---------------------- ----------------------
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $ 41,403 $ 32,757
- ---------------------------------------------------------------------- ---------------------- ----------------------
Ratio of expenses to average net assets 0.75% (d) 0.75% (d)
- ---------------------------------------------------------------------- ---------------------- ----------------------
Ratio of net investment income to
average net assets 3.01% (d) 2.45% (d)
- ---------------------------------------------------------------------- ---------------------- ----------------------
Expense waiver/reimbursement (e) 0.04% (d) 0.15% (d)
- ---------------------------------------------------------------------- ---------------------- ----------------------
Portfolio turnover rate 6% 20%
- ---------------------------------------------------------------------- ---------------------- ----------------------
</table>
(a) For the period January 8, 2004 (commencement of operations) through May 31,
2004.
(b) Based on net asset value, which does not reflect the sales charge.
(c) Not annualized.
(d) Annualized.
(e) 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.
20
<page>
CCMI FUNDS
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2004
(UNAUDITED)
NOTE 1. ORGANIZATION
The CCMI Equity Fund (the "Equity Fund") and the CCMI Bond Fund (the "Bond
Fund") were organized as diversified series of CCMI Funds (the "Trust"). The
CCMI Tax-Exempt North Carolina Bond Fund (the "NC Bond Fund") was organized as a
non-diversified series of 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 Equity 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 Equity
Fund changed its name from CCB Equity Fund to CCMI Equity Fund on June 1, 2001.
The Board of Trustees (the "Board") governs the Equity Fund, Bond Fund and NC
Bond Fund (collectively, the "Funds"). The Funds' investment adviser is Commerce
Capital Management, Inc. (the "Adviser"). The investment objective of the Equity
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 of the Bond 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 of the NC Bond Fund is to provide
current income exempt from federal regular income tax and the personal income
tax imposed by the state of North Carolina. The Equity Fund, Bond Fund and NC
Bond Fund commenced operations on December 31, 1994, July 1, 2002, and January
8, 2004, respectively.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by each
Fund in the preparation of its financial statements. These policies are in
conformity with accounting principles generally accepted in the United States of
America.
Securities Valuation - The Fund's net asset value (NAV) per Share fluctuates and
is based on the market value of all securities and other assets of the Fund. The
value of the Fund's portfolio securities is determined by a pricing service when
the Adviser believes such prices accurately reflect the fair market value. The
pricing service generally prices securities as follows:
o For exchange-traded equity securities, according to the last sale price
in the market in which they are primarily traded;
o For NASDAQ over-the-counter equity securities, according to the NASDAQ
Official Closing Price;
o 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. The Board may determine in good faith that
another method of valuing such investments is necessary to appraise
their fair market value; and
o For fixed income securities, according to the mean between bid and
asked prices, except that fixed income securities with remaining
maturities 60 days or less may be valued at amortized cost.
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. Other securities are
valued at fair value as determined in good faith by the Adviser, subject to and
in accordance with policies approved by the Board.
21
<page>
CCMI FUNDS
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Federal Income Taxes - There is no provision for federal income tax. The Funds
have met, and intend to continue to meet, requirements of subchapter M of the
Internal Revenue Code of 1986, as amended, by distributing substantially all of
their net investment income and net realized capital gains.
Security Transactions and Related Income - The Funds follow industry practice
and record 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 Equity Fund intends to distribute
substantially all of its net investment income as dividends to its shareholders
on a quarterly basis. The Bond Fund and the NC Bond Fund intend to distribute
substantially all of their net investment income as dividends to their
shareholders on a monthly basis. The Funds intend to distribute their net
realized long-term capital gains and their net realized short-term capital gains
at least once a year. Dividends are recorded on the ex-dividend date. The
treatment for financial reporting purposes of distributions made to shareholders
during the year from net investment income or net realized capital gains may
differ from their ultimate treatment for federal income tax purposes. These
differences are caused by differences in the timing of the recognition of
certain components of income, expense or realized capital gain for federal
income tax purposes. Where such differences are permanent in nature, they are
reclassified in the components of the net assets based on their ultimate
characterization for federal income tax purposes. Any such reclassifications
will have no effect on net assets, results of operations or net asset values per
share of a Fund.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser is Commerce Capital Management, Inc. Under the terms of the
management agreement (the "Agreement"), the Adviser manages each Fund's
investments subject to approval of the Board. As compensation for its management
services, each Fund is obligated to pay the Adviser a fee (based on average
daily net assets) computed and accrued daily and paid monthly at the following
annual rates: Equity Fund, 0.85%; Bond Fund, 0.60%; NC Bond Fund, 0.40%. For the
six months ended November 30, 2004, the Adviser earned a fee of $453,871 from
the Equity Fund, $331,236 from the Bond Fund, and $79,578 from the NC Bond Fund.
As of November 30, 2004, the Adviser was owed $59,669, $40,525, and $12,137 from
the Equity Fund, Bond Fund and NC Bond Fund, respectively.
Although not contractually obligated to do so, during the six months ended
November 30, 2004, the Adviser waived a portion of its management fees and/or
reimbursed Fund expenses in an aggregate amount equal to 0.28%, 0.22% and 0.04%
of the average daily net assets of the Equity Fund, Bond Fund and NC Bond Fund,
respectively. Although the Adviser expects to continue this voluntary
waiver/reimbursement (but in the case of the NC Bond Fund, only to the extent
necessary to reduce net annual operating expenses to 0.75% of average daily net
assets), the Adviser reserves the right to terminate it at any time. For the six
months ended November 30, 2004, the Adviser waived fees totaling $150,773 for
the Equity Fund, $121,297 for the Bond Fund, and $8,398 for the NC Bond Fund.
The Trust retains Unified Fund Services, Inc. ("Unified") to manage each Fund's
business affairs and to provide the Funds with administrative services,
including all regulatory reporting and necessary office equipment and personnel.
Unified receives a monthly fee from each Fund equal to an annual average rate of
0.13% of the Fund's average daily net assets up to $50 million dollars, 0.10% of
the Fund's average daily net assets from $50 million to $100 million, 0.08% of
the Fund's average daily net assets from $100 million to $150 million and 0.06%
of the Fund's average daily net assets over $150 million (subject to a $2,083
minimum monthly fee). For the six months ended November 30, 2004, Unified was
entitled to fees of $59,065, $62,328,
22
<page>
CCMI FUNDS
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
and $25,863 for administrative services provided to the Bond Fund, the Equity
Fund, and the NC Bond Fund, respectively. A Trustee and the officers of the
Trust are members of management and/or employees of Unified and/or officers or
shareholders of Unified Financial Services, Inc. (the parent of Unified).
The Trust retains Unified to act as each Fund's transfer agent and to provide
each Fund with fund accounting services. For its services as transfer agent,
Unified receives a monthly fee from each Fund of $1.25 per shareholder (subject
to various minimum monthly fees, the maximum being $1,250 per Fund plus
reimbursement of out of pocket expenses). For the six months ended November 30,
2004, Unified was entitled to fees and reimbursement of out of pockets of
$11,263, $11,344, and $10,684 for the Equity Fund, Bond Fund and NC Bond Fund,
respectively. For its services as fund accountant, Unified receives an annual
fee from each Fund equal to 0.05% of each Fund's assets up to $50 million, 0.04%
of each Fund's assets from $50 million to $100 million, 0.03% of each Fund's
assets from $100 million to $150 million, and 0.02% of each Fund's assets over
$150 million (subject to a monthly minimum fee of $1,667 per month). For the six
months ended November 30, 2004, Unified was entitled to fees of $26,345,
$35,593, and $17,391 for fund accounting services provided to the Equity Fund,
the Bond Fund, and the NC Bond Fund, respectively.
The Bond Fund and NC Bond Fund have adopted Rule 12b-1 Plans, which allow them
to pay marketing fees to Unified Financial Securities, Inc. (the "Distributor")
and investment professionals for the sale, distribution and customer servicing
of the Funds' shares. The Bond Fund and NC Bond Fund have no present intention
of paying or accruing a 12b-1 fee. The Equity Fund has not adopted a Rule 12b-1
Plan.
The Funds have adopted a Shareholder Services Plan (the "Plan"). Pursuant to the
Plan, the Funds may pay broker/dealers and other participating financial
institutions (including Unified Financial Securities, Inc.) up to 0.25% of
average net assets for providing shareholder services and maintaining
shareholder accounts. Unified Financial Securities, Inc. may select others to
perform these services for their customers and may pay fees to them. For the six
months ended November 30, 2004, shareholder service fees of $131,177 and
$139,936 were incurred by the Equity Fund and Bond Fund, respectively. The NC
Bond Fund has no present intention of paying or accruing the shareholder service
fee. A Trustee of the Trust is a shareholder of Unified Financial Services, Inc.
(the parent company of the Distributor) and certain officers of the Trust are a
director and/or officers of the Distributor. As a result, those persons may be
deemed to be affiliates of the Distributor.
NOTE 4. INVESTMENTS
For the six months ended November 30, 2004, purchases and sales of investment
securities, other than short-term investments and short-term U.S. government
obligations were as follows:
<table>
<s> <c> <c> <c>
EQUITY BOND NC BOND
FUND FUND FUND
--------------- ------------------- ----------------
PURCHASES
U.S. Government Obligations $ - $ 32,243,391 $ -
Other 5,749,595 3,448,205 9,670,140
SALES
U.S. Government Obligations $ - $ 46,596,825 $ -
Other 8,615,199 13,551,527 2,104,294
</table>
23
<page>
CCMI FUNDS
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
NOTE 4. INVESTMENTS - CONTINUED
As of November 30, 2004, the net unrealized appreciation of investments for tax
purposes was as follows:
<table>
<s> <c> <c> <c>
EQUITY FUND BOND FUND NC BOND FUND
-------------------- ----------------- -------------------
Gross Appreciation $ 26,116,027 $ 1,638,753 $ 378,947
Gross (Depreciation) (1,876,097) (339,720) (319,102)
-------------------- ----------------- -------------------
Net Appreciation on Investments $ 24,239,930 $ 1,299,033 $ 59,845
==================== ================= ===================
</table>
At November 30, 2004, the aggregate cost of securities for federal income tax
purposes were $83,456,845, $106,742,962, and $40,783,392 for the Equity Fund,
Bond Fund and NC Bond Fund, respectively.
NOTE 5. ESTIMATES
The preparation of financial statements in conformity 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 disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
NOTE 6. RELATED PARTY TRANSACTIONS
The beneficial ownership, either directly or indirectly, of more than 25% 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, 2004,
Central Carolina Bank & Trust, an affiliate of the Adviser, held 90.19% of the
Equity Fund, 99.70% of the Bond Fund, and 100.00% of the NC Bond Fund in omnibus
accounts for the benefit of others.
NOTE 7. DISTRIBUTIONS TO SHAREHOLDERS
EQUITY FUND. For the fiscal year ended May 31, 2004, the Equity Fund paid
quarterly distributions of net investment income totaling $0.0824 per share.
The tax character of distributions paid during fiscal years 2004 and 2003 was as
follows:
Distributions paid from: 2004 2003
---------------- ----------------
Ordinary income $ 625,155 $ 662,632
Short-term Capital Gain - -
Long-term Capital Gain - 659,765
---------------- ----------------
$ 625,155 $ 1,322,397
================ ================
For the six months ended November 30, 2004, the Equity Fund paid quarterly
investment income dividends totaling $269,302, or $0.0363 per share.
BOND FUND. For the fiscal year ended May 31, 2004, the Bond Fund paid monthly
distributions of net investment income totaling $0.4268 per share. On December
23, 2003, the Bond Fund paid capital gain distributions of $0.1287 to
shareholders of record on December 22, 2003.
24
<page>
CCMI FUNDS
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
NOTE 7. DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
The tax character of distributions paid during fiscal years 2004 and 2003 was as
follows:
Distributions paid from: 2004 2003
---------------- ----------------
Ordinary income $ 4,742,488 $ 3,852,377
Short-term Capital Gain 739,093 100,076
Long-term Capital Gain 676,403 1,001
---------------- ----------------
$ 6,157,984 $ 3,953,454
================ ================
For the six months ended November 30, 2004, the Bond Fund paid monthly
investment income dividends totaling $2,191,723, or $0.201 per share.
NC BOND FUND. For the fiscal year ended May 31, 2004, the NC Bond Fund paid
monthly distributions of net investment income totaling $0.0893 per share.
The tax character of distributions paid during fiscal year 2004 was as follows:
Distributions paid from: 2004
----------------
Ordinary income $ 251,404
Short-term Capital Gain -
Long-term Capital Gain -
----------------
$ 251,404
================
For the six months ended November 30, 2004, the NC Bond Fund paid monthly
investment income dividends totaling $596,996, or $0.1492 per share.
As of May 31, 2004, the components of distributable earnings/(accumulated
losses) on a tax basis were as follows:
EQUITY BOND NC BOND
FUND FUND FUND
--------------- --------- ---------
Undistributed ordinary income $ 133,055 $ 4,192 $ -
Undistributed long-term capital
gain/(accumulated losses) 2,028,284 (2,242) -
Unrealized appreciation/(depreciation) 23,061,783 (1,040,315) (863,675)
--------------- ------------- ---------
$25,223,122 $(1,038,365) $(863,675)
=============== ============== =========
As of May 31, 2004, there was no difference between book basis and tax basis
unrealized appreciation / (depreciation).
NOTE 8. SUBSEQUENT EVENT
On October 1, 2004, SunTrust Banks, Inc. ("SunTrust") acquired all of the
outstanding shares of the Adviser's parent. Under the Investment Company Act of
1940, as amended (the "1940 Act"), a transaction that results in a change of
control of an investment adviser may be deemed an "assignment." The 1940 Act
further provides that an advisory agreement automatically terminates in the
event of its assignment. The acquisition resulted in a "change in control" of
the Adviser's parent and the Adviser, its wholly-owned subsidiary, and caused
the "assignment" and resulting termination of the advisory agreement between the
Trust and the Adviser.
25
<page>
CCMI FUNDS
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2004 - CONTINUED
(UNAUDITED)
NOTE 8. SUBSEQUENT EVENT - CONTINUED
On September 13, 2004, the Board of Trustees of the Trust approved an interim
investment advisory agreement (the "Interim Advisory Agreement") between the
Trust and the Adviser. The Interim Advisory Agreement took effect on October 1,
2004 following the change of control of the Adviser. The purpose of the Interim
Advisory Agreement was to allow the Adviser to continue managing the Funds'
assets until shareholders approved a new investment advisory agreement for the
Funds. On September 13, 2004 the Board also approved a new investment advisory
contract ("New CCM Advisory Agreement") for the Funds with the Adviser, subject
to shareholder approval. As a result, the shareholders of the Funds were asked
to approve the New CCM Advisory Agreement. The primary purpose of the
shareholders' approval was to allow the Adviser to receive compensation for
investment advisory services performed on behalf of each Fund under the Interim
Advisory Agreement between October 1, 2004 and December 30, 2004. The New CCM
Advisory Agreement was approved by the Funds' shareholders at a shareholder
meeting on December 30, 2004 by the following vote.
FOR AGAINST ABSTAIN TOTAL
------------------------------------------------------------
Equity Fund 6,778,544 - 4,116 6,782,660
Bond Fund 10,637,321 - - 10,637,321
NC Bond Fund 4,123,400 - - 4,123,400
Following the acquisition, SunTrust decided that the Adviser would dissolve and
cease operations as an investment manager on or about December 31, 2004.
Accordingly, the Adviser was not able to serve as investment adviser to the
Funds after that date. On November 17, 2004 and December 13, 2004 the Board,
subject to shareholder approval, approved the appointment of Trusco Capital
Management, Inc. ("Trusco"), a registered investment adviser and wholly owned
subsidiary of SunTrust, as the investment adviser to the Funds, and approved a
new investment advisory agreement (the "New Advisory Agreement") between the
Trust and Trusco. The New Advisory Agreement was approved by the Funds'
shareholders at a shareholder meeting on December 30, 2004 by the following
vote, at which time it became effective.
FOR AGAINST ABSTAIN TOTAL
------------------------------------------------------------
Equity Fund 6,778,544 - 4,116 6,782,660
Bond Fund 10,637,321 - - 10,637,321
NC Bond Fund 4,123,400 - - 4,123,400
26
<page>
PROXY VOTING
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities and information regarding how
the Funds voted those proxies during the twelve month period ended June 30,
2004, are available without charge upon request by (1) calling the Funds at
(800) 386-3111; and (2) from Funds' documents filed with the Securities and
Exchange Commission ("SEC") on the SEC's website at www.sec.gov .
TRUSTEES
Gary E. Hippenstiel
Stephen A. Little
Daniel J. Condon
Ronald C. Tritschler
OFFICERS
Anthony J Ghoston, President
Thomas G. Napurano, Chief Financial Officer and Treasurer
Freddie Jacobs, Jr., Secretary
Lynn E. Wood, Chief Compliance Officer
INVESTMENT ADVISER
Trusco Capital Management, Inc.
50 Hurt Plaza, Suite 1400
Atlanta, GA 30303
DISTRIBUTOR
Unified Financial Securities, Inc.
431 N. Pennsylvania Street
Indianapolis, IN 46204
INDEPENDENT ACCOUNTANTS
Cohen McCurdy Ltd.
826 Westpoint Pkwy., Suite 1250
Westlake, OH 44145
LEGAL COUNSEL
Thompson Hine LLP
312 Walnut St, Suite 1400
Cincinnati, OH 45202
CUSTODIAN
The Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, OH 45263
ADMINISTRATOR, TRANSFER AGENT
AND FUND ACCOUNTANT
Unified Fund Services, Inc.
431 N. Pennsylvania Street
Indianapolis, IN 46204
This report is intended only for the information of shareholders or those who
have received the Funds' prospectus which contains information about the Funds'
management fee and expenses. Please read the prospectus carefully before
investing.
Distributed by Unified Financial Securities, Inc.
Member NASD/SIPC
27
<page>
Item 2. Code of Ethics. Not Applicable
Item 3. Audit Committee Financial Expert. Not Applicable
Item 4. Principal Accountant Fees and Services. Not Applicable
Item 5. Audit Committee of Listed Companies. Not applicable.
Item 6. Schedule of Investments. Not applicable - schedule filed with Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds.
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Funds. Not applicable.
Item 9. Submission of Matters to a Vote of Security Holders. The
registrant has not adopted procedures by which shareholders may
recommend nominees to the registrant's board of trustees.
Item 10. Controls and Procedures.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures as of December 22, 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.
Item 11. Exhibits.
(a)(1) Not Applicable
(a)(2) 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-2under the Investment
Company Act of 1940 are filed herewith.
(a)(3) Not Applicable
(b) 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.
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/ Anthony J. Ghoston
Anthony J. Ghoston, President
Date February 8, 2005
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/ Anthony J. Ghoston
Anthony J. Ghoston, President
Date February 8, 2005
By
* /s/ Thomas Napurano
Thomas Napurano, Treasurer and Chief Financial Officer
Date February 9, 2005