-------------------------
OMB APPROVAL
-------------------------
OMB Number: 3235-0570
Expires: August 31, 2011
Estimated average burden
hours per response: 18.9
-------------------------
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 811-21360
---------------------------------------------
CM Advisers Family of Funds
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
805 Las Cimas Parkway, Suite 430 Austin, Texas 78746
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
John F. Splain, Esq.
Ultimus Fund Solutions, LCC 225 Pictoria Drive, Suite 450 Cincinnati, Ohio 45246
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (512) 329-0050
----------------------------
Date of fiscal year end: February 28, 2009
-----------------------------
Date of reporting period: August 31, 2008
-----------------------------
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.
CM ADVISERS FAMILY OF FUNDS
SEMI-ANNUAL REPORT 2008
-----------------------
CM ADVISERS FUND
CM ADVISERS FIXED INCOME FUND
August 31, 2008
(Unaudited)
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the CM Advisers Family of Funds (the
"Funds"). This report is not authorized for distribution to prospective
investors in the Funds unless preceded or accompanied by an effective
prospectus. Mutual fund shares are not deposits or obligations of, or guaranteed
by, any depository institution. Shares are not insured by the FDIC, Federal
Reserve Board or any other agency, and are subject to investment risks,
including possible loss of principal amount invested.
CM ADVISERS FUND
SUPPLEMENTARY PORTFOLIO INFORMATION
AUGUST 31, 2008 (UNAUDITED)
================================================================================
ASSET AND SECTOR ALLOCATION
(% OF NET ASSETS)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Consumer Discretionary 15.7%
Consumer Staples 18.1%
Energy 0.8%
Financials 7.6%
Health Care 3.2%
Industrials 17.5%
Information Technology 20.8%
Materials 2.5%
Exchange Traded Funds 3.3%
Money Market Funds and Liabilities
in Excess of Other Assets 10.5%
TOP 10 EQUITY HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ----------------------------------- ---------------
Microsoft Corporation 6.1%
Walgreen Company 5.6%
Wal-Mart Stores, Inc. 5.0%
Wells Fargo & Company 4.3%
3M Company 4.3%
Talbots, Inc. (The) 3.3%
Marsh & McLennan Companies, Inc. 3.3%
Financial Select Sector SPDR Fund 3.3%
Coca-Cola Company (The) 3.3%
UnitedHealth Group, Inc. 3.2%
1
CM ADVISERS FIXED INCOME FUND
SUPPLEMENTARY PORTFOLIO INFORMATION
AUGUST 31, 2008 (UNAUDITED)
================================================================================
ASSET ALLOCATION
(% OF NET ASSETS)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
U.S. Government Obligations 13.9%
Corporate Bonds 40.5%
Money Market Funds and Other
Assets in Excess of Liabilities 45.6%
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ----------------------------------------- ---------------
U.S. Treasury Strip, 7.25%, due 08/15/22 11.7%
Marriott International, Inc., 6.375%, due 06/15/17 2.5%
U.S. Treasury Bond, 5.00%, due 05/15/37 2.2%
PepsiCo., Inc., 5.00%, due 06/01/18 2.0%
Kraft Foods, Inc., 6.125%, due 02/01/18 2.0%
Western Union Company (The), 5.93%, due 10/01/16 2.0%
Starbucks Corporation, 6.25%, due 08/15/17 2.0%
Gannet Company, Inc., 6.375%, due 04/01/12 2.0%
Wells Fargo & Company, 5.625%, due 12/11/17 1.9%
UnitedHealth Group, Inc., 6.00%, due 02/15/18 1.9%
* Excludes money market funds.
2
CM ADVISERS FUND
SCHEDULE OF INVESTMENTS
AUGUST 31, 2008 (UNAUDITED)
================================================================================
SHARES COMMON STOCKS -- 86.2% VALUE
- --------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS -- 1.3%
15,235 FedEx Corporation ................................. $ 1,261,763
20,380 United Parcel Service, Inc. - Class B ............. 1,306,766
------------
2,568,529
------------
BEVERAGES -- 3.3%
121,520 Coca-Cola Company (The) ........................... 6,327,546
------------
BUILDING PRODUCTS -- 3.1%
317,475 Masco Corporation ................................. 6,051,073
------------
CHEMICALS -- 2.5%
109,125 E.I. Du Pont de Nemours & Company ................. 4,849,515
------------
COMMERCIAL BANKS -- 4.3%
278,100 Wells Fargo & Company ............................. 8,418,087
------------
COMMERCIAL SERVICES & SUPPLIES -- 2.9%
115,349 Avery Dennison Corporation ........................ 5,564,436
------------
COMPUTERS & PERIPHERALS -- 6.7%
67,500 Dell, Inc. * ...................................... 1,466,775
286,600 Hutchinson Technology, Inc. * ..................... 4,152,834
221,600 IMATION Corporation ............................... 4,706,784
178,330 Seagate Technology ................................ 2,658,900
------------
12,985,293
------------
DIVERSIFIED CONSUMER SERVICES -- 1.3%
191,730 CPI Corporation ................................... 2,576,851
------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 3.1%
578,950 KEMET Corporation * ............................... 937,899
7,340 Maxwell Technologies, Inc. * ...................... 90,722
186,700 Newport Corporation * ............................. 1,749,379
80,260 Rogers Corporation * .............................. 3,211,203
------------
5,989,203
------------
FOOD & STAPLES RETAILING -- 10.6%
299,215 Walgreen Company .................................. 10,900,402
165,440 Wal-Mart Stores, Inc. ............................. 9,772,541
------------
20,672,943
------------
FOOD PRODUCTS -- 1.3%
37,725 General Mills, Inc. ............................... 2,496,641
------------
3
CM ADVISERS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 86.2% (CONTINUED) VALUE
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES -- 3.2%
207,375 UnitedHealth Group, Inc. .......................... $ 6,314,569
------------
HOUSEHOLD DURABLES -- 7.7%
88,686 Dixie Group, Inc. (The) * ......................... 678,448
163,575 Ethan Allen Interiors, Inc. ....................... 4,439,425
200,310 Leggett & Platt, Inc. ............................. 4,468,916
44,335 Newell Rubbermaid, Inc. ........................... 802,464
187,200 Toll Brothers, Inc. * ............................. 4,657,536
------------
15,046,789
------------
HOUSEHOLD PRODUCTS -- 2.9%
74,875 Colgate-Palmolive Company ......................... 5,692,746
------------
INDUSTRIAL CONGLOMERATES -- 5.3%
117,305 3M Company ........................................ 8,399,038
65,795 General Electric Company .......................... 1,848,839
------------
10,247,877
------------
INSURANCE -- 3.3%
200,142 Marsh & McLennan Companies, Inc. .................. 6,390,534
------------
LEISURE EQUIPMENT & PRODUCTS -- 0.1%
7,930 Eastman Kodak Company ............................. 128,387
------------
MACHINERY -- 2.6%
100,425 Illinois Tool Works, Inc. ......................... 4,982,084
------------
MEDIA -- 1.8%
73,850 News Corporation - Class A ........................ 1,045,716
76,700 Walt Disney Company (The) ......................... 2,481,245
------------
3,526,961
------------
OIL, GAS & CONSUMABLE FUELS -- 0.8%
270,000 USEC, Inc. * ...................................... 1,555,200
------------
PROFESSIONAL SERVICES -- 0.8%
40,272 CDI Corporation ................................... 1,010,827
7,000 Dun & Bradstreet Corporation (The) ................ 643,790
------------
1,654,617
------------
ROAD & RAIL -- 1.5%
26,375 Arkansas Best Corporation ......................... 913,102
105,930 YRC Worldwide, Inc. * ............................. 1,917,333
------------
2,830,435
------------
4
CM ADVISERS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 86.2% (CONTINUED) VALUE
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 5.0%
213,055 Applied Materials, Inc. ........................... $ 3,817,946
41,900 Cymer, Inc. * ..................................... 1,254,486
200,000 Intel Corporation ................................. 4,574,000
------------
9,646,432
------------
SOFTWARE -- 6.1%
435,995 Microsoft Corporation ............................. 11,898,304
------------
SPECIALTY RETAIL -- 4.7%
61,150 Aaron Rents, Inc. ................................. 1,746,444
252,052 Cost Plus, Inc. * ................................. 320,106
99,000 Pacific Sunwear of California, Inc. * ............. 626,670
472,955 Talbots, Inc. (The) ............................... 6,465,295
------------
9,158,515
------------
TRADING COMPANIES & DISTRIBUTORS -- 0.0%
2,700 Lawson Products, Inc. ............................. 81,324
------------
TOTAL COMMON STOCKS (Cost $180,805,911) ........... $167,654,891
------------
================================================================================
SHARES EXCHANGE TRADED FUNDS -- 3.3% VALUE
- --------------------------------------------------------------------------------
299,330 Financial Select Sector SPDR Fund (Cost $8,752,878) $ 6,381,716
------------
================================================================================
SHARES MONEY MARKET FUNDS -- 11.1% VALUE
- --------------------------------------------------------------------------------
21,661,414 Evergreen Institutional Treasury Money Market Fund -
Institutional Class, 1.82% (a) (Cost $21,661,414) $ 21,661,414
------------
TOTAL INVESTMENTS AT VALUE -- 100.6%
(Cost $211,220,203) ............................. $195,698,021
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.6%) ... (1,202,652)
------------
NET ASSETS -- 100.0% .............................. $194,495,369
============
(a) Variable rate security. The rate shown is the 7-day effective yield as of
August 31, 2008.
* Non-income producing security.
See accompanying notes to financial statements.
5
CM ADVISERS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
AUGUST 31, 2008 (UNAUDITED)
================================================================================
PAR VALUE CORPORATE BONDS -- 40.5% VALUE
- --------------------------------------------------------------------------------
BEVERAGES -- 2.0%
$ 300,000 PepsiCo, Inc., 5.00%, due 06/01/18 ................ $ 297,352
------------
BUILDING PRODUCTS -- 1.7%
300,000 Masco Corporation, 5.85%, due 03/15/17 ............ 256,534
------------
COMMERCIAL BANKS -- 1.9%
300,000 Wells Fargo & Company, 5.625%, due 12/11/17 ....... 288,354
------------
COMMERCIAL SERVICES & SUPPLIES -- 3.2%
200,000 Pitney Bowes, Inc., 5.75%, due 09/15/17 ........... 197,918
300,000 R.R. Donnelley & Sons Company, 6.125%, due 01/15/17 275,375
------------
473,293
------------
COMPUTERS & PERIPHERALS -- 1.3%
200,000 Seagate Technology HDD Holdings, 6.375%,
due 10/01/11 .................................... 197,250
------------
FOOD & STAPLES RETAILING -- 1.0%
140,000 Wal-Mart Stores, Inc., 6.50%, due 08/15/37 ........ 143,322
------------
FOOD PRODUCTS -- 2.0%
300,000 Kraft Foods, Inc., 6.125%, due 02/01/18 ........... 294,629
------------
HEALTH CARE PROVIDERS & SERVICES -- 1.9%
300,000 UnitedHealth Group, Inc., 6.00%, due 02/15/18 ..... 287,278
------------
HOTELS, RESTAURANTS & LEISURE -- 4.4%
400,000 Marriott International, Inc., 6.375%, due 06/15/17 366,325
300,000 Starbucks Corporation, 6.25%, due 08/15/17 ........ 292,778
------------
659,103
------------
HOUSEHOLD DURABLES -- 2.0%
185,000 Newell Rubbermaid, Inc., 6.25%, due 04/15/18 ...... 167,395
150,000 Toll Brothers, Inc., 5.15%, due 05/15/15 .......... 127,111
------------
294,506
------------
IT SERVICES -- 2.0%
300,000 Western Union Company (The), 5.93%, due 10/01/16 .. 293,225
------------
MACHINERY -- 0.8%
115,000 Dover Corporation, 5.45%, due 03/15/18 ............ 114,913
------------
MEDIA -- 3.3%
300,000 Gannett Company, Inc., 6.375%, due 04/01/12 ....... 289,573
200,000 McGraw-Hill Companies, Inc. (The), 5.90%,
due 11/15/17 .................................... 198,594
------------
488,167
------------
6
CM ADVISERS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
================================================================================
PAR VALUE CORPORATE BONDS -- 40.5% (CONTINUED) VALUE
- --------------------------------------------------------------------------------
METALS & MINING -- 1.8%
$ 300,000 Alcoa, Inc., 5.72%, due 02/23/19 .................. $ 273,280
------------
MULTI-LINE RETAIL -- 1.6%
160,000 Kohl's Corporation, 6.25%, due 12/15/17 ........... 151,784
100,000 Kohl's Corporation, 6.00%, due 01/15/33 ........... 79,220
------------
231,004
------------
MULTI-UTILITIES -- 1.4%
200,000 Consolidated Edison, Inc., 5.85%, due 04/01/18 .... 201,974
------------
OIL, GAS & CONSUMABLE FUELS -- 1.9%
300,000 Valero Energy Corporation, 6.125%, due 06/15/17 ... 284,317
------------
PERSONAL PRODUCTS -- 1.2%
200,000 Estee Lauder Companies, Inc. (The), 6.00%,
due 05/15/37 .................................... 179,439
------------
PROFESSIONAL SERVICES -- 1.4%
200,000 Dun & Bradstreet Corporation (The), 6.00%,
due 04/01/13 .................................... 201,417
------------
ROAD & RAIL -- 1.9%
300,000 CSX Corporation, 6.25%, due 03/15/18 .............. 283,339
------------
SPECIALTY RETAIL -- 1.8%
300,000 Home Depot, Inc. (The), 5.40%, due 03/01/16 ....... 271,452
------------
TOTAL CORPORATE BONDS (Cost $6,195,091) ........... $ 6,014,148
------------
================================================================================
PAR VALUE U.S. GOVERNMENT OBLIGATIONS -- 13.9% VALUE
- --------------------------------------------------------------------------------
$3,250,000 U.S. Treasury Bond, stripped principal
payment, 7.25%, due 08/15/22 .................... $ 1,729,192
300,000 U.S. Treasury Bond, 5.00%, due 05/15/37 ........... 327,820
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $2,000,790) ............................... $ 2,057,012
------------
7
CM ADVISERS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
================================================================================
SHARES MONEY MARKET FUNDS -- 44.8% VALUE
- --------------------------------------------------------------------------------
6,636,825 Evergreen Institutional Treasury Money Market Fund -
Institutional Class, 1.82%(a) (Cost $6,636,825).. $ 6,636,825
------------
TOTAL INVESTMENTS AT VALUE -- 99.2%
(Cost $14,832,706) .............................. $ 14,707,985
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.8% ..... 116,595
------------
NET ASSETS -- 100.0% .............................. $ 14,824,580
============
(a) Variable rate security. The rate shown is the 7-day effective yield as of
August 31, 2008.
See accompanying notes to financial statements.
8
CM ADVISERS FAMILY OF FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 2008 (UNAUDITED)
=====================================================================================
CM ADVISERS
CM ADVISERS FIXED INCOME
FUND FUND
- -------------------------------------------------------------------------------------
ASSETS
Investments in securities:
At cost ......................................... $ 211,220,203 $ 14,832,706
============= =============
At value (Note 2) ............................... $ 195,698,021 $ 14,707,985
Dividends and interest receivable .................. 519,014 119,972
Receivable for capital shares sold ................. 26,034 10,125
Other assets ....................................... 22,113 9,152
------------- -------------
TOTAL ASSETS .................................... 196,265,182 14,847,234
------------- -------------
LIABILITIES
Payable for investment securities purchased ........ 1,474,479 --
Payable for capital shares redeemed ................ 53,004 --
Payable to Adviser (Note 5) ........................ 204,631 7,702
Payable to Administrator (Note 5) .................. 19,790 5,330
Other accrued expenses and liabilities ............. 17,909 9,622
------------- -------------
TOTAL LIABILITIES ............................... 1,769,813 22,654
------------- -------------
NET ASSETS ......................................... $ 194,495,369 $ 14,824,580
============= =============
Net assets consist of:
Paid-in capital .................................... $ 218,551,708 $ 13,881,735
Accumulated undistributed net investment income .... 1,012,550 66,372
Accumulated net realized gains (losses)
from security transactions ...................... (9,546,707) 1,001,194
Net unrealized depreciation on investments ......... (15,522,182) (124,721)
------------- -------------
Net assets ......................................... $ 194,495,369 $ 14,824,580
============= =============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ...... 18,432,674 1,354,700
============= =============
Net asset value, redemption price and
offering price per share (a) .................... $ 10.55 $ 10.94
============= =============
(a) Redemption price may differ from the net asset value per share depending
upon the length of time the shares are held (Note 2).
See accompanying notes to financial statements.
9
CM ADVISERS FAMILY OF FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED AUGUST 31, 2008 (UNAUDITED)
========================================================================================
CM ADVISERS
CM ADVISERS FIXED INCOME
FUND FUND
- ----------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividend ............................................. $ 2,463,536 $ 72,129
Interest ............................................. -- 169,498
------------ ------------
TOTAL INVESTMENT INCOME ......................... 2,463,536 241,627
------------ ------------
EXPENSES
Investment advisory fees (Note 5) .................... 1,255,091 34,413
Administration fees (Note 5) ......................... 80,483 10,200
Fund accounting fees (Note 5) ........................ 22,063 11,435
Registration fees .................................... 22,424 8,495
Professional fees .................................... 19,111 11,253
Transfer agent fees (Note 5) ......................... 18,561 9,000
Trustees' fees and expenses .......................... 14,539 4,678
Custody and bank service fees ........................ 9,519 3,172
Insurance expense .................................... 3,948 433
Other expenses ....................................... 5,247 10,161
------------ ------------
TOTAL EXPENSES .................................. 1,450,986 103,240
------------ ------------
NET INVESTMENT INCOME ................................... 1,012,550 138,387
------------ ------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS
Net realized gains (losses) from security transactions (14,647,456) 189,633
Net change in unrealized appreciation/
depreciation on investments ........................ 19,066,908 (330,194)
------------ ------------
NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS ........................ 4,419,452 (140,561)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ...................................... $ 5,432,002 $ (2,174)
============ ============
See accompanying notes to financial statements.
10
CM ADVISERS FUND
STATEMENTS OF CHANGES IN NET ASSETS
==========================================================================================
SIX MONTHS
ENDED
AUGUST 31, YEAR ENDED
2008 FEBRUARY 29,
(UNAUDITED) 2008
- ------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ................................ $ 1,012,550 $ 2,786,831
Net realized gains (losses) from security transactions (14,647,456) 10,247,832
Net change in unrealized appreciation/
depreciation on investments ........................ 19,066,908 (55,891,840)
------------- -------------
Net increase (decrease) in net assets from operations ... 5,432,002 (42,857,177)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income ............. -- (3,378,458)
Distributions from net realized gains
from security transactions ......................... -- (5,854,862)
------------- -------------
Net decrease in net assets from
distributions to shareholders ........................ -- (9,233,320)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ............................ 8,314,961 53,804,075
Net asset value of shares issued in reinvestment of
distributions to shareholders ...................... -- 8,873,195
Proceeds from redemption fees collected (Note 2) ..... 11,862 70,246
Payments for shares redeemed ......................... (28,374,010) (70,407,158)
------------- -------------
Net decrease in net assets from
capital share transactions ........................... (20,047,187) (7,659,642)
------------- -------------
TOTAL DECREASE IN NET ASSETS ............................ (14,615,185) (59,750,139)
NET ASSETS
Beginning of period .................................. 209,110,554 268,860,693
------------- -------------
End of period ........................................ $ 194,495,369 $ 209,110,554
============= =============
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME ................................ $ 1,012,550 $ --
============= =============
CAPITAL SHARE ACTIVITY
Shares sold .......................................... 802,026 4,351,472
Shares reinvested .................................... -- 765,113
Shares redeemed ...................................... (2,769,474) (5,810,437)
------------- -------------
Net decrease in shares outstanding ................... (1,967,448) (693,852)
Shares outstanding, beginning of period .............. 20,400,122 21,093,974
------------- -------------
Shares outstanding, end of period .................... 18,432,674 20,400,122
============= =============
See accompanying notes to financial statements.
11
CM ADVISERS FIXED INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
====================================================================================
SIX MONTHS
ENDED
AUGUST 31, YEAR ENDED
2008 FEBRUARY 29,
(UNAUDITED) 2008
- ------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ............................ $ 138,387 $ 248,436
Net realized gains from security transactions.. .. 189,633 1,025,081
Net change in unrealized appreciation/
depreciation on investments .................... (330,194) (8,723)
------------ ------------
Net increase (decrease) in net assets from operations (2,174) 1,264,794
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ....................... (72,015) (248,436)
From net realized gains from security transactions -- (212,745)
------------ ------------
Net decrease in net assets from
distributions to shareholders .................... (72,015) (461,181)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ........................ 2,250,072 8,862,326
Net asset value of shares issued in reinvestment
of distributions to shareholders ............... 69,861 449,106
Proceeds from redemption fees collected (Note 2) . 397 3,344
Payments for shares redeemed ..................... (246,782) (419,210)
------------ ------------
Net increase in net assets from
capital share transactions ....................... 2,073,548 8,895,566
------------ ------------
TOTAL INCREASE IN NET ASSETS ........................ 1,999,359 9,699,179
NET ASSETS
Beginning of period .............................. 12,825,221 3,126,042
------------ ------------
End of period .................................... $ 14,824,580 $ 12,825,221
============ ============
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME ............................ $ 66,372 $ --
============ ============
CAPITAL SHARE ACTIVITY
Shares sold ...................................... 205,862 867,466
Shares reinvested ................................ 6,358 43,279
Shares redeemed .................................. (22,606) (38,819)
------------ ------------
Net increase in shares outstanding ............... 189,614 871,926
Shares outstanding, beginning of period .......... 1,165,086 293,160
------------ ------------
Shares outstanding, end of period ................ 1,354,700 1,165,086
============ ============
See accompanying notes to financial statements.
12
CM ADVISERS FUND
FINANCIAL HIGHLIGHTS
==============================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
==============================================================================================================================
SIX MONTHS
ENDED YEARS ENDED PERIOD
AUGUST 31, ---------------------------------------------------- ENDED
2008 FEBRUARY 29, FEBRUARY 28, FEBRUARY 28, FEBRUARY 28, FEBRUARY 29,
(UNAUDITED) 2008 2007 2006 2005 2004 (a)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value at
beginning of period .. ................ $ 10.25 $ 12.75 $ 12.11 $ 11.50 $ 10.74 $ 10.00
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income (loss) ......... 0.05 0.14 0.19 0.17 0.01 (0.01)
Net realized and unrealized
gains (losses) on investments ....... 0.25 (2.19) 1.00 1.11 0.78 0.75
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations ........ 0.30 (2.05) 1.19 1.28 0.79 0.74
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net
investment income ................... -- (0.16) (0.19) (0.15) -- --
Distributions from net
realized gains ...................... -- (0.29) (0.36) (0.52) (0.03) --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions ..................... -- (0.45) (0.55) (0.67) (0.03) --
---------- ---------- ---------- ---------- ---------- ----------
Proceeds from redemption
fees collected (Note 2) ............... 0.00(f) 0.00(f) 0.00(f) 0.00(f) 0.00(f) 0.00(f)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at
end of period ......................... $ 10.55 $ 10.25 $ 12.75 $ 12.11 $ 11.50 $ 10.74
========== ========== ========== ========== ========== ==========
Total return (b) ....................... 2.93%(c) (16.43%) 9.88% 11.31% 7.36% 7.40%(c)
========== ========== ========== ========== ========== ==========
RATIOS AND SUPPLEMENTAL DATA:
Net assets at
end of period (000's).. ............... $ 194,495 $ 209,111 $ 268,861 $ 187,557 $ 79,992 $ 36,589
========== ========== ========== ========== ========== ==========
Ratio of gross expenses
to average net assets.. ............... 1.45%(e) 1.46% 1.50% 1.83% 2.03% 2.84%(e)
Ratio of net expenses
to average net assets (d) ............. 1.45%(e) 1.46% 1.50% 1.50% 1.50% 1.50%(e)
Ratio of net investment income
(loss) to average net assets (d) ...... 1.01%(e) 1.07% 1.70% 1.86% 0.10% (0.30%)(e)
Portfolio turnover rate ................. 6%(c) 66% 22% 19% 18% 6%(c)
(a) Represents the period from the commencement of operations (May 13, 2003)
through February 29, 2004.
(b) Total return is a measure of the change in value of an investment in the
Fund over the period covered, which assumes any dividends or capital gains
distributions are reinvested in shares of the Fund. The returns shown do
not reflect the deduction of taxes a shareholder would pay on Fund
distributions or the redemption of Fund shares.
(c) Not annualized.
(d) Ratio was determined after investment advisory fee waivers and/or expense
reimbursements.
(e) Annualized.
(f) Amount rounds to less than $0.01 per share.
See accompanying notes to financial statements.
13
CM ADVISERS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
==================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
==================================================================================================
SIX MONTHS
ENDED YEAR PERIOD
AUGUST 31, ENDED ENDED
2008 FEBRUARY 29, FEBRUARY 28,
(UNAUDITED) 2008 2007 (a)
- --------------------------------------------------------------------------------------------------
Net asset value at beginning of period ......... $ 11.01 $ 10.66 $ 10.00
---------- ---------- ----------
Income (loss) from investment operations:
Net investment income ........................ 0.11 0.25 0.29
Net realized and unrealized gains
(losses) on investments .................... (0.12) 0.57 0.84
---------- ---------- ----------
Total from investment operations ............... (0.01) 0.82 1.13
---------- ---------- ----------
Less distributions:
Dividends from net investment income ......... (0.06) (0.25) (0.29)
Distributions from net realized gains ........ -- (0.22) --
In excess of net investment income ........... -- -- (0.18)
---------- ---------- ----------
Total distributions ............................ (0.06) (0.47) (0.47)
---------- ---------- ----------
Proceeds from redemption fees collected (Note 2) 0.00(f) 0.00(f) 0.00(f)
---------- ---------- ----------
Net asset value at end of period ............... $ 10.94 $ 11.01 $ 10.66
========== ========== ==========
Total return (b) ............................... (0.09%)(c) 8.05% 11.39%(c)
========== ========== ==========
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) ............ $ 14,825 $ 12,825 $ 3,126
========== ========== ==========
Ratio of gross expenses to average net assets .. 1.50%(e) 2.28% 7.28%(e)
Ratio of net expenses to average net assets (d) 1.50%(e) 1.50% 1.50%(e)
Ratio of net investment income to
average net assets (d) ....................... 2.01%(e) 2.79% 3.28%(e)
Portfolio turnover rate ........................ 16%(c) 188% 0%
(a) Represents the period from the commencement of operations (March 24, 2006)
through February 28, 2007.
(b) Total return is a measure of the change in value of an investment in the
Fund over the period covered, which assumes any dividends or capital gains
distributions are reinvested in shares of the Fund. The returns shown do
not reflect the deduction of taxes a shareholder would pay on Fund
distributions or the redemption of Fund shares.
(c) Not annualized.
(d) Ratio was determined after investment advisory fee waivers and/or expense
reimbursements.
(e) Annualized.
(f) Amount rounds to less than $0.01 per share.
See accompanying notes to financial statements.
14
CM ADVISERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2008 (UNAUDITED)
================================================================================
1. ORGANIZATION
The CM Advisers Fund and the CM Advisers Fixed Income Fund (collectively the
"Funds" and individually a "Fund") are each no-load series of the CM Advisers
Family of Funds (the "Trust"), which was organized as a Delaware statutory trust
and is registered under the Investment Company Act of 1940 (the "1940 Act") as
an open-end management investment company.
The CM Advisers Fund commenced operations on May 13, 2003. The investment
objective of the Fund is long-term growth of capital.
The CM Advisers Fixed Income Fund commenced operations on March 24, 2006. The
investment objective of the Fund is to seek to preserve capital and maximize
total return using fixed income securities.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Funds' significant accounting policies:
INVESTMENT VALUATION - The Funds' investments in securities are carried at
market value. Securities listed on an exchange or quoted on a national market
system are valued at the last sales price as of 4:00 p.m. Eastern Time.
Securities which are quoted by NASDAQ are valued at the NASDAQ Official Closing
Price. Securities traded in the over-the-counter market and listed securities
for which no sale was reported on that date are valued at the most recent bid
price. It is expected that fixed income securities will ordinarily be traded in
the over-the-counter market. Securities and assets for which representative
market quotations are not readily available (e.g., if the exchange on which the
portfolio security is principally traded closes early or if trading of the
particular portfolio security is halted during the day and does not resume prior
to the Funds' net asset value calculations) or which cannot be accurately valued
using the Funds' normal pricing procedures are valued at fair value as
determined in good faith under policies approved by the Trustees. A portfolio
security's "fair value" price may differ from the price next available for that
portfolio security using the Funds' normal pricing procedures. Instruments with
maturities of 60 days or less are valued at amortized cost, which approximates
market value.
The Financial Accounting Standards Board ("FASB") Statement on Financial
Accounting Standards ("SFAS") No. 157 "Fair Value Measurements" establishes a
single authoritative definition of fair value, sets out a framework for
measuring fair value and requires additional disclosures about fair value
measurements.
Various inputs are used in determining the value of each of the Fund's
investments. These inputs are summarized in the three broad levels listed below:
o Level 1 - quoted prices in active markets for identical securities
o Level 2 - other significant observable inputs
o Level 3 - significant unobservable inputs
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
15
CM ADVISERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
The following is a summary of the inputs used to value the Funds' net assets as
of August 31, 2008:
- --------------------------------------------------------------------------------
CM ADVISERS
CM ADVISERS FIXED INCOME
VALUATION INPUTS FUND FUND
- --------------------------------------------------------------------------------
Level 1 - Quoted Prices......................... $ 195,698,021 $ 6,636,825
Level 2 - Other Significant Observable Inputs... -- 8,071,160
------------- -------------
Total ......................................... $ 195,698,021 $ 14,707,985
============= =============
- --------------------------------------------------------------------------------
SHARE VALUATION AND REDEMPTION FEES -- The net asset value per share of each
Fund is calculated daily by dividing the total value of each Fund's assets, less
liabilities, by the number of shares outstanding. The offering price and
redemption price per share of each Fund is equal to the net asset value per
share, except that shares of each Fund are subject to a redemption fee of 1%
payable to the applicable Fund, if redeemed within one year of the date of the
purchase. During the periods ended August 31, 2008 and February 29, 2008,
proceeds from redemption fees totaled $11,862 and $70,246, respectively, for the
CM Advisers Fund and $397 and $3,344, respectively, for the CM Advisers Fixed
Income Fund.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME - Investment transactions are
accounted for on trade date. Dividend income is recorded on the ex-dividend
date. Interest income is accrued as earned. Discounts and premiums on fixed
income securities purchased are amortized using the interest method. Gains and
losses on securities sold are determined on a specific identification basis,
which is the same basis used for federal income tax purposes.
EXPENSES - The Funds bear expenses incurred specifically on their behalf as well
as a portion of general Trust expenses, which are allocated according to methods
authorized by the Trustees.
DIVIDEND DISTRIBUTIONS - Dividends arising from net investment income, if any,
are declared and paid at least annually to shareholders of the CM Advisers Fund
and declared and paid quarterly to shareholders of the CM Advisers Fixed Income
Fund. Distributions from capital gains (if any) are generally declared and
distributed annually. The amount of distributions from net investment income and
net realized gains are determined in accordance with federal income tax
regulations which may differ from accounting principles generally accepted in
the United States of America. These "book/tax" differences are either temporary
or permanent in nature. Dividends and distributions are recorded on the
ex-dividend date.
The tax character of distributions paid during the periods ended August 31, 2008
and February 29, 2008 was as follows:
- --------------------------------------------------------------------------------------------
PERIODS ORDINARY LONG-TERM TOTAL
ENDED INCOME CAPITAL GAINS DISTRIBUTIONS
- --------------------------------------------------------------------------------------------
CM Advisers Fund................. 08/31/08 $ -- $ -- $ --
02/29/08 $ 3,378,458 $ 5,854,862 $ 9,233,320
- --------------------------------------------------------------------------------------------
CM Advisers Fixed Income Fund.... 08/31/08 $ 72,015 $ -- $ 72,015
02/29/08 $ 461,181 $ -- $ 461,181
- --------------------------------------------------------------------------------------------
16
CM ADVISERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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 at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
3. FEDERAL INCOME TAX
It is each Fund's policy to comply with the special provisions of Subchapter M
of the Internal Revenue Code applicable to regulated investment companies. As
provided therein, in any fiscal year in which a Fund so qualifies, and
distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
The following information is computed on a tax basis for each item as of August
31, 2008:
- -------------------------------------------------------------------------------
CM ADVISERS
CM ADVISERS FIXED INCOME
FUND FUND
- -------------------------------------------------------------------------------
Tax cost of portfolio investments ............ $ 211,220,203 $ 14,832,706
============= =============
Gross unrealized appreciation ................ $ 12,740,380 $ 63,388
Gross unrealized depreciation ................ (28,262,562) (188,109)
------------- -------------
Net unrealized depreciation .................. $ (15,522,182) $ (124,721)
Undistributed ordinary income ................ 1,012,550 934,873
Undistributed long-term gains ................ 5,100,749 132,693
Other losses ................................. (14,647,456) --
------------- -------------
Accumulated earnings (deficit) ............... $ (24,056,339) $ 942,845
============= =============
- -------------------------------------------------------------------------------
The FASB's Interpretation No. 48 ("FIN 48") "Accounting for Uncertainty in
Income Taxes" provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken in the course of preparing the
Funds' tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Based on management's
analysis, the application of FIN 48 does not have a material impact on these
financial statements. The statute of limitations on the Fund's tax returns
remains open for the years ended February 28, 2006 through February 29, 2008.
17
CM ADVISERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
4. INVESTMENT TRANSACTIONS
During the six months ended August 31, 2008, cost of purchases and proceeds from
sales of investment securities, other than short-term investments and U.S.
government securities, were as follows:
- --------------------------------------------------------------------------------
CM ADVISERS
CM ADVISERS FIXED INCOME
FUND FUND
- --------------------------------------------------------------------------------
Cost of purchases of investment securities..... $ 11,269,103 $ 6,192,137
============= =============
Proceeds from sales of investment securities... $ 42,281,290 $ --
============= =============
- --------------------------------------------------------------------------------
5. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Funds pay a monthly advisory fee to Van Den Berg Management I, Inc. (the
"Adviser") based upon the average daily net assets of each Fund and calculated
at the annual rate of 1.25% for the CM Advisers Fund and 0.50% for the CM
Advisers Fixed Income Fund. The Adviser has entered into a contractual agreement
(the "Expense Limitation Agreement") with the Funds under which it has agreed to
waive or reduce its fees and to assume other expenses of the Funds, if
necessary, in an amount that limits the Funds' total operating expenses
(exclusive of interest, taxes, brokerage fees and commissions, extraordinary
expenses, and payments, if any, under a Rule 12b-1 plan) during the fiscal year
ended February 28, 2009 to not more than 2.00% and 1.50% of the average daily
net assets of the CM Advisers Fund and the CM Advisers Fixed Income Fund,
respectively. There can be no assurance that the Expense Limitation Agreement or
any voluntary fee waivers will continue beyond February 28, 2009. There were no
advisory fee waivers or expense reimbursements during the six months ended
August 31, 2008.
ADMINISTRATION AGREEMENT
Under the terms of an Administration Agreement with the Trust, Ultimus Fund
Solutions, LLC ("Ultimus") provides executive and administrative services and
internal regulatory compliance services for the Funds. Ultimus supervises the
preparation of tax returns, reports to shareholders of the Funds, reports to and
filings with the Securities and Exchange Commission ("SEC") and state securities
commissions and prepares materials for meetings of the Board of Trustees. For
these services, each Fund pays to Ultimus a monthly fee at an annual rate of
0.08% per annum of its average daily net assets up to $500 million, 0.05% of
such assets from $500 million to $2 billion, 0.04% of such assets from $2
billion to $3 billion and 0.03% of such assets in excess of $3 billion,
provided, however, that the minimum fee is $2,000 per month with respect to each
Fund. Ultimus is currently discounting the administration fee by 15% for the CM
Advisers Fixed Income Fund; this discount ends November 20, 2008.
FUND ACCOUNTING AGREEMENT
Under the terms of a Fund Accounting Agreement with the Trust, Ultimus
calculates the daily net asset value per share and maintains the financial books
and records of the Funds. For these services, each Fund pays to Ultimus a base
fee of $2,000 per month, plus an asset-based fee at the annual rate of 0.01% of
the first $500 million of each Fund's average daily net assets and 0.005% of
such assets in excess of $500 million. In addition, the Funds pay all costs of
external pricing services.
18
CM ADVISERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
TRANSFER AGENT AND SHAREHOLDER SERVICES AGREEMENT
Under the terms of a Transfer Agent and Shareholder Services Agreement with the
Trust, Ultimus maintains the records of each shareholder's account, answers
shareholders' inquiries concerning their accounts, processes purchases and
redemptions of each Fund's shares, acts as dividend and distribution disbursing
agent and performs other shareholder service functions. For these services,
Ultimus receives from each Fund a fee, payable monthly, at an annual rate of $17
per account, provided, however, that the minimum fee with respect to each Fund
is $1,000 per month if a Fund has 25 shareholder accounts or less, $1,250 if a
Fund has more than 25 but less than 100 shareholder accounts, and $1,500 per
month if a Fund has more than 100 shareholder accounts. In addition, each Fund
pays out-of-pocket expenses, including but not limited to, postage and supplies.
DISTRIBUTION AGREEMENT
Pursuant to the terms of a Distribution Agreement with the Trust, Ultimus Fund
Distributors, LLC (the "Distributor") serves as the Funds' principal
underwriter. The Distributor is a wholly-owned subsidiary of Ultimus. The
Distributor receives compensation of $250 per month from each Fund for such
services.
DISTRIBUTION AND SERVICE FEES
The Trustees, including a majority of the Trustees who are not "interested
persons" of the Trust as defined in the 1940 Act (the "Independent Trustees"),
have adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act for
each of the Funds (the "Plans"). Rule 12b-1 regulates the manner in which a
regulated investment company may assume costs of distributing and promoting the
sales of its shares and servicing of its shareholder accounts. The Plans provide
that the Funds may incur certain costs, which may not exceed 0.25% per annum of
the CM Advisers Fund's average daily net assets and 0.45% per annum of the CM
Advisers Fixed Income Fund's average daily net assets, related to activities
reasonably intended to result in sales of shares of the Funds or support
servicing of shareholder accounts. During the six months ended August 31, 2008,
the Funds did not incur any distribution related expenses under the Plans.
6. CONTINGENCIES AND COMMITMENTS
The Funds indemnify the Trust's officers and Trustees for certain liabilities
that might arise from their performance of their duties to the Funds.
Additionally, in the normal course of business, the Funds enter into contracts
that contain a variety of representations and warranties and which provide
general indemnifications. Each Fund's maximum exposure under these arrangements
is unknown, as this would involve future claims that may be made against the
Funds that have not yet occurred. However, based on experience, the Trust
expects the risk of loss to be remote.
19
CM ADVISERS FAMILY OF FUNDS
ABOUT YOUR FUNDS' EXPENSES (UNAUDITED)
================================================================================
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Funds, you may incur two types of costs: (1) transaction costs, including
redemption fees; and (2) ongoing costs, including management fees, distribution
(12b-1) fees and other Fund expenses. Operating expenses, which are deducted
from each Fund's gross income, directly reduce the investment return of the
Funds.
A mutual fund's ongoing costs are expressed as a percentage of its average net
assets. This figure is known as the expense ratio. The following examples are
intended to help you understand the 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 examples below are based on an investment of $1,000 made
at the beginning of the period shown and held for the entire period (March 1,
2008 - August 31, 2008).
The table below illustrates each Fund's costs in two ways:
ACTUAL FUND RETURN - This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from each
Fund's actual return, and the third column shows the dollar amount of operating
expenses that would have been paid by an investor who started with $1,000 in the
Funds. You may use the information here, together with the amount you invested,
to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Funds under the heading "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN - This section is intended to help you compare the Funds'
costs with those of other mutual funds. It assumes that each Fund had an annual
return of 5% before expenses during the period shown, but that the expense ratio
is unchanged. In this case, because the return used is not the Funds' actual
returns, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and Exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess each
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Funds do not impose any sales loads. However, a
redemption fee of 1% is applied on the sale of shares (sold within one year of
the date of their purchase.)
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Funds' expenses, including annual expense ratios, can
be found in this report. For additional information on operating expenses and
other shareholder costs, please refer to the Funds' prospectus.
20
CM ADVISERS FAMILY OF FUNDS
ABOUT YOUR FUNDS' EXPENSES (UNAUDITED) (CONTINUED)
================================================================================
CM ADVISERS FUND
- --------------------------------------------------------------------------------
BEGINNING ENDING
ACCOUNT VALUE ACCOUNT VALUE EXPENSES PAID
MARCH 1, 2008 AUG. 31, 2008 DURING PERIOD*
- --------------------------------------------------------------------------------
Based on Actual Fund Return ...... $ 1,000.00 $ 1,029.30 $ 7.40
Based on Hypothetical 5% Return
(before expenses) ............ $ 1,000.00 $ 1,017.85 $ 7.35
- --------------------------------------------------------------------------------
* Expenses are equal to the CM Adviser Fund's annualized expense ratio of
1.45% for the period, multiplied by the average account value over the
period, multiplied by 184/366 (to reflect the one-half year period).
CM ADVISERS FIXED INCOME FUND
- --------------------------------------------------------------------------------
BEGINNING ENDING
ACCOUNT VALUE ACCOUNT VALUE EXPENSES PAID
MARCH 1, 2008 AUG. 31, 2008 DURING PERIOD*
- --------------------------------------------------------------------------------
Based on Actual Fund Return ...... $ 1,000.00 $ 999.10 $ 7.54
Based on Hypothetical 5% Return
(before expenses) ............ $ 1,000.00 $ 1,017.60 $ 7.61
- --------------------------------------------------------------------------------
* Expenses are equal to the CM Advisers Fixed Income Fund's annualized
expense ratio of 1.50% for the period, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period).
OTHER INFORMATION (UNAUDITED)
================================================================================
The Trust files a complete listing of portfolio holdings for the Funds with the
SEC as of the first and third quarters of each fiscal year on Form N-Q. The
filings are available upon request, by calling 1-888-859-5856. Furthermore, you
may obtain a copy of these filings on the SEC's website at http://www.sec.gov.
The Trust's Forms N-Q may also be reviewed and copied at the SEC's Public
Reference Room in Washington, DC, and information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available without charge
upon request by calling toll-free 1-888-859-5856, or on the SEC's website at
http://www.sec.gov. Information regarding how the Funds voted proxies relating
to portfolio securities during the most recent 12-month period ended June 30 is
also available without charge upon request by calling toll-free 1-888-859-5856,
or on the SEC's website at http://www.sec.gov.
21
CM ADVISERS FUND AND
CM ADVISERS FIXED INCOME FUND
ARE SERIES OF THE
CM ADVISERS FAMILY OF FUNDS
-----------------------
FOR SHAREHOLDER SERVICE INQUIRIES: FOR INVESTMENT ADVISER INQUIRIES:
Ultimus Fund Solutions, LLC Van Den Berg Management I, Inc.
P.O. Box 46707 (d/b/a CM Fund Advisers)
Cincinnati, OH 45246-0707 805 Las Cimas Parkway, Suite 430
Austin, Texas 78746
TOLL-FREE TELEPHONE: TOLL-FREE TELEPHONE:
1-888-859-5856 1-888-859-5856
WORLD WIDE WEB @:
centman.com
- --------------------------------------------------------------------------------
Investment in the Funds is subject to investment risks, including the possible
loss of some or all of the principal amount invested. No investment strategy
works all the time, and past performance is not necessarily indicative of future
performance.
THE PERFORMANCE INFORMATION QUOTED IN THIS REPORT REPRESENTS PAST PERFORMANCE,
WHICH IS NOT A GUARANTEE OF FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL
VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. A
REDEMPTION FEE OF 1% OF THE AMOUNT REDEEMED IS IMPOSED ON REDEMPTIONS OF FUND
SHARES OCCURRING WITHIN ONE YEAR FOLLOWING THE ISSUANCE OF SUCH SHARES.
AN INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND
EXPENSES OF THE FUNDS CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS
AND OTHER INFORMATION ABOUT THE FUNDS. A COPY OF THE PROSPECTUS IS AVAILABLE AT
WWW.CENTMAN.COM OR BY CALLING SHAREHOLDER SERVICES AT 1-888-859-5856. THE
PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING.
- --------------------------------------------------------------------------------
FOR MORE INFORMATION ON YOUR CM ADVISERS FAMILY OF FUNDS:
See Our Web site @ www.centman.com or
Call Our Shareholder Services Group Toll-Free at 1-888-859-5856
ITEM 2. CODE OF ETHICS.
No required
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
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
MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable
ITEM 10. 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 11. CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) as of a date within 90 days of the filing date of this report, the
registrant's principal executive officer and principal financial officer have
concluded that such disclosure controls and procedures are reasonably designed
and are operating effectively to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to them
by others within those entities, particularly during the period in which this
report is being prepared, and that the information required in filings on Form
N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)
that occurred during the second fiscal quarter of the period covered by this
report that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not required
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)): Attached hereto
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the Act (17 CFR 270.23c-1) sent or given during the period covered by the report
by or on behalf of the registrant to 10 or more persons: Not applicable
(b) Certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)): Attached hereto
Exhibit 99.CERT Certifications required by Rule 30a-2(a) under the Act
Exhibit 99.906CERT Certifications required by Rule 30a-2(b) under the Act
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) CM Advisers Family of Funds
By (Signature and Title)* /s/ Arnold Van Den Berg
--------------------------------------------------
Arnold Van Den Berg, Chairman and President
Date November 6, 2008
-----------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Arnold Van Den Berg
--------------------------------------------------
Arnold Van Den Berg, Chairman and President
Date November 6, 2008
-----------------------------
By (Signature and Title)* /s/ James D. Brilliant
--------------------------------------------------
James D. Brilliant, Treasurer
Date November 6, 2008
-----------------------------
* Print the name and title of each signing officer under his or her signature.