-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V4p+lCZC65KRQRUGnx6zSBvKOUBlTSxSKhcyvSQQYmanKCmLKo344LVwAWPvlEv3 REbS8soBnPN3+0N0Y44yMg== 0000950123-10-056871.txt : 20100609 0000950123-10-056871.hdr.sgml : 20100609 20100609134630 ACCESSION NUMBER: 0000950123-10-056871 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100331 FILED AS OF DATE: 20100609 DATE AS OF CHANGE: 20100609 EFFECTIVENESS DATE: 20100609 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CNI CHARTER FUNDS CENTRAL INDEX KEY: 0001026977 IRS NUMBER: 911766001 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07923 FILM NUMBER: 10886821 BUSINESS ADDRESS: STREET 1: 400 NORTH ROXBURY DRIVE CITY: BEVERLY HILLS STATE: CA ZIP: 90210 BUSINESS PHONE: (800) 708-8881 MAIL ADDRESS: STREET 1: 400 NORTH ROXBURY DRIVE CITY: BEVERLY HILLS STATE: CA ZIP: 90210 FORMER COMPANY: FORMER CONFORMED NAME: BERKELEY FUNDS TRUST DATE OF NAME CHANGE: 19980319 FORMER COMPANY: FORMER CONFORMED NAME: BERKELEY CAPITAL MANAGEMENT FUNDS DATE OF NAME CHANGE: 19961113 0001026977 S000005827 CNI CHARTER LARGE CAP GROWTH EQUITY FUND C000015985 CNI CHARTER LARGE CAP GROWTH EQUITY FUND - CLASS N CLEAX C000015986 CNI CHARTER LARGE CAP GROWTH EQUITY FUND - INSTITUTIONAL CNGIX 0001026977 S000005828 CNI CHARTER HIGH YIELD BOND FUND C000015987 CNI CHARTER HIGH YIELD BOND FUND - CLASS N CHBAX C000015988 CNI CHARTER HIGH YIELD BOND FUND - INSTITUTIONAL CHYIX 0001026977 S000005829 CNI LARGE CAP VALUE EQUITY FUND C000015989 CNI LARGE CAP VALUE EQUITY FUND - CLASS N CVEAX C000015990 CNI LARGE CAP VALUE EQUITY FUND - INSTITUTIONAL CNLIX 0001026977 S000005831 CNI CHARTER RCB SMALL CAP VALUE FUND C000015993 CNI CHARTER RCB SMALL CAP VALUE FUND - CLASS N RCBAX C000015994 CNI CHARTER RCB SMALL CAP VALUE FUND - INSTITUTIONAL RCBIX C000015995 CNI CHARTER RCB SMALL CAP VALUE FUND - CLASS R RCBSX 0001026977 S000005832 CNI CHARTER PRIME MONEY MARKET FUND C000015996 CNI CHARTER PRIME MONEY MARKET FUND - CLASS N CNPXX C000015997 CNI CHARTER PRIME MONEY MARKET FUND - INSTITUTIONAL CNMXX C000015998 CNI CHARTER PRIME MONEY MARKET FUND - CLASS S CNSXX 0001026977 S000005833 CNI CHARTER GOVERNMENT MONEY MARKET FUND C000015999 CNI CHARTER GOVERNMENT MONEY MARKET FUND - CLASS N CNGXX C000016000 CNI CHARTER GOVERNMENT MONEY MARKET FUND - INSTITUTIONAL CNIXX C000016001 CNI CHARTER GOVERNMENT MONEY MARKET FUND - CLASS S CNFXX 0001026977 S000005834 CNI CHARTER CALIFORNIA TAX EXEMPT MONEY MARKET FUND C000016002 CNI CHARTER CALIFORNIA TAX EXEMPT MONEY MARKET FUND - CLASS N CNEXX C000016003 CNI CHARTER CALIFORNIA TAX EXEMPT MONEY MARKET FUND - INSTITUTIONAL CNTXX C000016004 CNI CHARTER CALIFORNIA TAX EXEMPT MONEY MARKET FUND - CLASS S CEMXX 0001026977 S000005835 CNI CHARTER CALIFORNIA TAX - EXEMPT BOND FUND C000016005 CNI CHARTER CALIFORNIA TAX - EXEMPT BOND FUND - CLASS N CCTEX C000016006 CNI CHARTER CALIFORNIA TAX - EXEMPT BOND FUND - INSTITUTIONAL CNTIX 0001026977 S000005836 CNI CHARTER CORPORATE BOND FUND C000016007 CNI CHARTER CORPORATE BOND FUND - CLASS N CCBAX C000016008 CNI CHARTER CORPORATE BOND FUND - INSTITUTIONAL CNCIX 0001026977 S000005837 CNI CHARTER GOVERNMENT BOND FUND C000016009 CNI CHARTER GOVERNMENT BOND FUND - CLASS N CGBAX C000016010 CNI CHARTER GOVERNMENT BOND FUND - INSTITUTIONAL CNBIX 0001026977 S000018801 CNI CHARTER MULTI-ASSET FUND C000052022 Institutional Class C000052023 Class N 0001026977 S000022389 Opportunistic Value Fund C000064397 Class E C000064398 Institutional Class C000064399 Class N N-CSRS 1 g57185_cni-ncsrs.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________ FORM N-CSR ________ CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBER 811-0792 CNI CHARTER FUNDS (Exact name of registrant as specified in charter) ________ 400 North Roxbury Drive Beverly Hills, CA 90210 (Address of principal executive offices) (Zip code) SEI Investments Distributors 1 Freedom Valley Drive Oaks, PA 19456 (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-888-889-0799 DATE OF FISCAL YEAR END: SEPTEMBER 30, 2010 DATE OF REPORTING PERIOD: MARCH 31, 2010 ITEM 1. REPORTS TO STOCKHOLDERS. [CNI CHARTER FUNDS LOGO] [GRAPHIC] 2010 SEMI-ANNUAL REPORT MARCH 31, 2010 For The Following Funds Managed by City National Asset Management, Inc.: Large Cap Value Equity Fund Multi-Asset Fund High Yeild Bond Fund Large Cap Growth Equity Fund Corporate Bond Fund Prime Money Market Fund RCB Small Cap Value Fund Government Bond Fund Government Money Market Fund Opportunistic Value Fund California Tax Exempt Bond Fund California Tax Exempt Money Market Fund
[GRAPHIC] This report and the financial statements contained herein are provided for the general information of the shareholders of the CNI Charter Funds. This report is not authorized for distribution to prospective investors in the CNI Charter Funds unless preceded or accompanied by an effective prospectus. Please remember that past performance is no guarantee of future results. Shares of CNI Charter Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency and involve investment risks, including the possible loss of the principal amount invested. TABLE OF CONTENTS CNI Charter Funds Semi-Annual Report 2 Schedules of Investments 42 Statements of Assets & Liabilities 45 Statements of Operations 48 Statements of Changes in Net Assets 52 Financial Highlights 55 Notes to Financial Statements 63 Disclosure of Fund Expenses
The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds' Form N-Q is available on the Commission's website at http://www.sec.gov, and may be reviewed and copied at the Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.The most current Form N-Q is also available on the Funds' website at www.cnicharterfunds.com and without charge, upon request, by calling 1-888-889-0799. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to the Funds' portfolio securities, and information on how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ending June 30 is available (1) without charge, upon request, by calling 1-888-889-0799, (2) on the Funds' website at www.cnicharterfunds.com, and (3) on the Securities and Exchange Commission's website at www.sec.gov. CNI CHARTER FUNDS | PAGE 1 schedule of investments MARCH 31, 2010 (UNAUDITED) LARGE CAP VALUE EQUITY FUND SECTOR WEIGHTINGS*: [BAR GRAPH] Financials 24.7% Consumer Staples 11.9% Industrials 11.8% Consumer Discretionary 10.9% Healthcare 10.7% Energy 9.8% Utilities 5.9% Information Technology 5.6% Telecommunication Services 3.8% Short-Term Investments 2.7% Materials 2.2%
*Percentages based on total investments.
DESCRIPTION SHARES VALUE (000) - ----------- ------------ COMMON STOCK [96.9%] AEROSPACE & DEFENSE [3.4%] General Dynamics 9,000 $ 695 Goodrich 16,400 1,156 Lockheed Martin 4,400 366 Northrop Grumman 4,500 295 Raytheon 17,400 994 ------------ TOTAL AEROSPACE & DEFENSE 3,506 ============ AIR FREIGHT & LOGISTICS [1.3%] FedEx 14,600 1,364 ============ AUTOMOBILES [0.1%] Ford Motor* 10,000 126 ============ BEVERAGES [2.3%] Coca Cola 24,700 1,358 Coca Cola Enterprises 14,000 387 Molson Coors Brewing, Cl B 15,400 648 ------------ TOTAL BEVERAGES 2,393 ============ BIOTECHNOLOGY [1.0%] Amgen* 4,000 239 Genzyme* 10,000 518 Gilead Sciences* 7,000 319 ------------ TOTAL BIOTECHNOLOGY 1,076 ============ CAPITAL MARKETS [5.3%] Bank of New York Mellon 36,900 1,139 Goldman Sachs Group 11,200 1,911 Morgan Stanley 35,700 1,046 State Street 29,500 1,332 ------------ TOTAL CAPITAL MARKETS 5,428 ============ CHEMICALS [1.0%] Dow Chemical 36,000 1,065 ============ COMMERCIAL BANKS [4.8%] BB&T 21,100 684 US Bancorp 49,000 1,268 Wells Fargo 94,960 2,955 ------------ TOTAL COMMERCIAL BANKS 4,907 ============ COMMERCIAL SERVICES & SUPPLIES [0.2%] RR Donnelley & Sons 10,000 213 ============ COMPUTERS & PERIPHERALS [2.3%] Hewlett Packard 26,600 1,414 IBM 7,600 974 ------------ TOTAL COMPUTERS & PERIPHERALS 2,388 ============ CONSTRUCTION & ENGINEERING [0.5%] Fluor 10,100 470 ============ CONTAINERS & PACKAGING [0.7%] Ball 13,200 705 ============ DIVERSIFIED FINANCIAL SERVICES [6.5%] Bank of America 140,000 2,499 JPMorgan Chase 83,200 3,723 Nasdaq OMX Group* 23,000 486 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 6,708 ============ DIVERSIFIED TELECOMMUNICATION SERVICES [3.7%] AT&T 76,617 1,980 Verizon Communications 58,509 1,815 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 3,795 ============ ELECTRIC UTILITIES [3.8%] Allegheny Energy 14,000 322 American Electric Power 13,000 444 Edison International 32,600 1,114 Entergy 6,800 553 FirstEnergy 7,600 297
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 2 schedule of investments MARCH 31, 2010 (UNAUDITED) LARGE CAP VALUE EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000) - ----------- ------ ------------ FPL Group 10,200 $ 493 PPL 24,100 668 ------------ TOTAL ELECTRIC UTILITIES 3,891 ============ ELECTRICAL EQUIPMENT [0.5%] Emerson Electric 10,200 513 ============ ELECTRONIC EQUIPMENT [0.7%] Corning 37,100 750 ============ ENERGY EQUIPMENT & SERVICES [0.9%] ENSCO International 12,000 538 National Oilwell Varco 10,900 442 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 980 ============ FOOD & STAPLES RETAILING [5.5%] CVS 34,700 1,269 Kroger 30,800 667 Safeway 46,400 1,154 Sysco 15,000 442 Wal Mart Stores 38,000 2,113 ------------ TOTAL FOOD & STAPLES RETAILING 5,645 ============ FOOD PRODUCTS [2.3%] Archer Daniels Midland 22,400 648 ConAgra Foods 23,500 589 Kraft Foods, Cl A 26,000 786 Sara Lee 27,000 376 ------------ TOTAL FOOD PRODUCTS 2,399 ============ HEALTH CARE EQUIPMENT & SUPPLIES [1.7%] Baxter International 12,500 727 Becton Dickinson 5,500 433 Covidien 12,800 644 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,804 ============ HEALTH CARE PROVIDERS & SERVICES [2.5%] Aetna 27,600 969 Cigna 18,500 677 McKesson 15,000 986 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 2,632 ============ HOTELS, RESTAURANTS & LEISURE [1.3%] Carnival 14,300 556 Darden Restaurants 17,000 757 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 1,313 ============ HOUSEHOLD DURABLES [1.5%] Fortune Brands 14,000 679 Whirlpool 10,000 873 ------------ TOTAL HOUSEHOLD DURABLES 1,552 ============ HOUSEHOLD PRODUCTS [1.7%] Procter & Gamble 28,500 1,803 ============ INDUSTRIAL CONGLOMERATES [2.2%] General Electric 95,500 1,738 Tyco International 13,600 520 ------------ TOTAL INDUSTRIAL CONGLOMERATES 2,258 ============ INSURANCE [8.1%] ACE 24,600 1,287 Aflac 16,000 869 Allstate 17,000 549 Assurant 14,800 509 Chubb 25,000 1,296 MetLife 38,406 1,665 Travelers 27,000 1,456 Unum Group 30,000 743 ------------ TOTAL INSURANCE 8,374 ============ IT SERVICES [0.3%] Western Union 16,000 271 ============ MACHINERY [0.8%] Eaton 3,900 296 Parker Hannifin 7,700 498 ------------ TOTAL MACHINERY 794 ============ MEDIA [3.6%] CBS, Cl B 31,250 436 Comcast, Cl A 56,200 1,058 Omnicom Group 14,700 570 Time Warner 27,933 873 Viacom, Cl B* 23,000 791 ------------ TOTAL MEDIA 3,728 ============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 3 schedule of investments MARCH 31, 2010 (UNAUDITED) LARGE CAP VALUE EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000) - ----------- --------- ------------- MULTILINE RETAIL [0.8%] Target 15,500 $ 815 ============= MULTI-UTILITIES [2.1%] PG&E 20,300 861 Public Service Enterprise Group 22,100 652 Sempra Energy 14,000 699 ------------- TOTAL MULTI-UTILITIES 2,212 ============= OIL, GAS & CONSUMABLE FUELS [8.9%] Apache 6,000 609 Chevron 38,240 2,900 ConocoPhillips 31,580 1,616 Exxon Mobil 41,000 2,746 Occidental Petroleum 15,000 1,268 ------------- TOTAL OIL, GAS & CONSUMABLE FUELS 9,139 ============= PAPER & FOREST PRODUCTS [0.5%] MeadWestvaco 20,400 521 ============= PHARMACEUTICALS [5.3%] Abbott Laboratories 21,700 1,143 Bristol-Myers Squibb 41,000 1,095 Eli Lilly 16,000 579 Merck 23,100 863 Pfizer 104,000 1,784 ------------- TOTAL PHARMACEUTICALS 5,464 ============= ROAD & RAIL [2.9%] CSX 24,400 1,242 Norfolk Southern 12,600 704 Union Pacific 14,500 1,063 ------------- TOTAL ROAD & RAIL 3,009 ============= SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT [1.7%] Intel 29,000 645 Texas Instruments 44,900 1,099 ------------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1,744 ============= SOFTWARE [0.5%] Microsoft 18,500 541 ============= SPECIALTY RETAIL [2.3%] Best Buy 12,200 519 Lowe's 22,500 545 RadioShack 13,200 299 Ross Stores 9,000 481 Sherwin-Williams 8,200 555 ------------- TOTAL SPECIALTY RETAIL 2,399 ============= TEXTILES, APPAREL & LUXURY GOODS [1.3%] Nike, Cl B 17,900 1,316 ============= WIRELESS TELECOMMUNICATION SERVICES [0.1%] Sprint Nextel* 20,000 76 ============= TOTAL COMMON STOCK (Cost $96,281) 100,087 ============= CASH EQUIVALENTS [2.7%] Fidelity Institutional Domestic Money Market Portfolio, Cl I, 0.140%** 1,468,694 1,468 Goldman Sachs Financial Square Funds - Government Fund, 0.030%** 1,319,708 1,320 ------------- TOTAL CASH EQUIVALENTS (Cost $2,788) 2,788 ============= TOTAL INVESTMENTS [99.6%] (Cost $99,069) $ 102,875 =============
PERCENTAGES ARE BASED ON NET ASSETS OF $103,258 ($ THOUSANDS). * NON-INCOME PRODUCING SECURITY. ** THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010. CL -- CLASS The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total -------- -------- ------- -------- Investments in Securities Common Stock $100,087 $ -- $ -- $100,087 Cash Equivalents 2,788 -- -- 2,788 -------- -------- ------- -------- Total Investments in Securities $102,875 $ -- $ -- $102,875 ======== ======== ======= ========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 4 schedule of investments MARCH 31, 2010 (UNAUDITED) LARGE CAP GROWTH EQUITY FUND SECTOR WEIGHTINGS*: [BAR GRAPH] Information Technology 31.8% Healthcare 13.1% Energy 11.4% Consumer Staples 10.2% Industrials 9.2% Consumer Discretionary 8.5% Financials 6.6% Materials 4.4% Short-Term Investments 2.7% Telecommunication Services 1.9% Utilities 0.2%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000) - ----------- ------ ----------- COMMON STOCK [96.9%] AEROSPACE & DEFENSE [4.7%] Boeing 3,900 $ 283 Honeywell International 3,200 145 L-3 Communications Holdings, Cl 3 3,000 275 Lockheed Martin 3,300 275 Precision Castparts 3,600 456 United Technologies 4,000 294 ----------- TOTAL AEROSPACE & DEFENSE 1,728 =========== AIR FREIGHT & LOGISTICS [0.8%] Expeditors International of Washington 7,700 284 =========== BEVERAGES [2.5%] Coca-Cola 5,800 319 PepsiCo 9,400 622 ----------- TOTAL BEVERAGES 941 =========== BIOTECHNOLOGY [3.9%] Amgen* 4,000 239 Celgene* 7,000 434 Genzyme* 5,000 259 Gilead Sciences* 11,400 518 ----------- TOTAL BIOTECHNOLOGY 1,450 =========== CAPITAL MARKETS [4.1%] Franklin Resources 4,500 499 Goldman Sachs Group 4,000 683 Invesco 5,800 127 T Rowe Price Group 3,500 192 ----------- TOTAL CAPITAL MARKETS 1,501 =========== CHEMICALS [1.5%] Monsanto 4,200 300 Praxair 3,000 249 ----------- TOTAL CHEMICALS 549 =========== COMMERCIAL SERVICES & SUPPLIES [1.2%] Republic Services, Cl A 7,500 218 RR Donnelley & Sons 9,900 211 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 429 =========== COMMUNICATIONS EQUIPMENT [4.8%] Cisco Systems* 25,000 651 Harris 7,100 337 Qualcomm 19,000 798 ----------- TOTAL COMMUNICATIONS EQUIPMENT 1,786 =========== COMPUTERS & PERIPHERALS [9.1%] Apple* 6,000 1,410 Hewlett-Packard 12,000 638 IBM 10,200 1,308 ----------- TOTAL COMPUTERS & PERIPHERALS 3,356 =========== CONSTRUCTION & ENGINEERING [0.9%] Fluor 3,500 163 Jacobs Engineering Group* 3,700 167 ----------- TOTAL CONSTRUCTION & ENGINEERING 330 =========== CONSUMER FINANCE [0.4%] American Express 4,000 165 =========== CONTAINERS & PACKAGING [0.4%] Owens-Illinois* 4,500 160 =========== DIVERSIFIED FINANCIAL SERVICES [0.4%] CME Group, Cl A 500 158 =========== DIVERSIFIED TELECOMMUNICATION SERVICES [1.9%] AT&T 27,000 698 ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 5 schedule of investments MARCH 31, 2010 (UNAUDITED) LARGE CAP GROWTH EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000) - ----------- ------ ----------- ELECTRIC UTILITIES [0.2%] Edison International 2,200 $ 75 =========== ELECTRONIC EQUIPMENT [0.3%] FLIR Systems* 4,500 127 =========== ENERGY EQUIPMENT & SERVICES [3.7%] Baker Hughes 4,500 211 ENSCO International 5,000 224 Noble 5,000 209 Schlumberger 11,300 717 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 1,361 =========== FOOD & STAPLES RETAILING [0.9%] Wal-Mart Stores 5,900 328 =========== FOOD PRODUCTS [1.2%] Campbell Soup 3,500 124 Kellogg 5,700 304 ----------- TOTAL FOOD PRODUCTS 428 =========== HEALTH CARE EQUIPMENT & SUPPLIES [3.1%] Bard (C.R.) 3,200 277 Baxter International 5,000 291 Medtronic 3,000 135 Stryker 7,500 429 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,132 =========== HEALTH CARE PROVIDERS & SERVICES [2.0%] DaVita* 3,400 216 McKesson 3,300 217 UnitedHealth Group 9,000 294 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 727 =========== HOUSEHOLD PRODUCTS [4.8%] Colgate-Palmolive 9,400 801 Procter & Gamble 15,102 956 ----------- TOTAL HOUSEHOLD PRODUCTS 1,757 =========== INSURANCE [1.0%] Aflac 6,600 358 =========== INTERNET & CATALOG RETAIL [1.2%] Amazon.com* 3,300 448 =========== INTERNET SOFTWARE & SERVICES [5.1%] eBay* 20,000 539 Google, Cl A* 2,400 1,361 ----------- TOTAL INTERNET SOFTWARE & SERVICES 1,900 =========== IT SERVICES [2.1%] Cognizant Technology Solutions, Cl A* 6,700 341 Mastercard, Cl A 1,000 254 Western Union 9,600 163 ----------- TOTAL IT SERVICES 758 =========== LIFE SCIENCES TOOLS & SERVICES [0.5%] Life Technologies* 3,600 188 =========== MACHINERY [1.6%] Caterpillar 5,700 358 Danaher 3,000 240 ----------- TOTAL MACHINERY 598 =========== MEDIA [1.7%] Comcast, Cl A 13,000 244 DIRECTV, Cl A* 4,900 166 Omnicom Group 6,000 233 ----------- TOTAL MEDIA 643 =========== METALS & MINING [2.5%] Allegheny Technologies 2,800 151 Freeport-McMoRan Copper & Gold 6,000 501 Newmont Mining 5,000 255 ----------- TOTAL METALS & MINING 907 =========== MULTILINE RETAIL [0.6%] Target 4,000 210 =========== OIL, GAS & CONSUMABLE FUELS [7.7%] Apache 3,300 335 EOG Resources 3,300 307 Exxon Mobil 16,000 1,071
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 6 schedule of investments MARCH 31, 2010 (UNAUDITED) LARGE CAP GROWTH EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000) - ----------- ------ ----------- Hess 2,800 $ 175 Occidental Petroleum 7,000 592 Southwestern Energy* 3,000 122 XTO Energy 5,400 255 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 2,857 =========== PERSONAL PRODUCTS [0.8%] Avon Products 8,300 281 =========== PHARMACEUTICALS [3.6%] Abbott Laboratories 5,000 263 Allergan 3,600 235 Johnson & Johnson 10,364 676 Merck 4,000 150 ----------- TOTAL PHARMACEUTICALS 1,324 =========== SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT [1.8%] Intel 14,000 312 Texas Instruments 14,400 352 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 664 =========== SOFTWARE [8.4%] Microsoft 62,180 1,820 Oracle 43,265 1,111 Salesforce.com* 2,200 164 ----------- TOTAL SOFTWARE 3,095 =========== SPECIALTY RETAIL [2.4%] Autozone* 1,800 312 Best Buy 4,900 208 GameStop, Cl A* 8,100 178 TJX 4,500 191 ----------- TOTAL SPECIALTY RETAIL 889 =========== TEXTILES, APPAREL & LUXURY GOODS [2.5%] Coach 14,100 557 Nike, Cl B 5,000 368 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 925 =========== THRIFTS & MORTGAGE FINANCE [0.6%] Hudson City Bancorp 16,000 227 =========== TOTAL COMMON STOCK (Cost $31,119) 35,742 =========== CASH EQUIVALENTS [2.7%] Fidelity Institutional Domestic Money Market Portfolio, Cl I, 0.140%** 716,482 717 Goldman Sachs Financial Square Funds - Government Fund, 0.030%** 280,058 280 ----------- TOTAL CASH EQUIVALENTS (Cost $997) 997 =========== TOTAL INVESTMENTS [99.6%] (Cost $32,116) $ 36,739 ===========
PERCENTAGES ARE BASED ON NET ASSETS OF $36,893 ($ THOUSANDS). * NON-INCOME PRODUCING SECURITY. ** THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010. CL -- CLASS The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total --------- ------- ------- --------- Investments in Securities Common Stock $ 35,742 $ -- $ -- $ 35,742 Cash Equivalents 997 -- -- 997 --------- ------- ------- --------- Total Investments in Securities $ 36,739 $ -- $ -- $ 36,739 ========= ======= ======= =========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 7 schedule of investments MARCH 31, 2010 (UNAUDITED) RCB SMALL CAP VALUE FUND SECTOR WEIGHTINGS*: [BAR GRAPH] Financials 26.2% Consumer Discretionary 18.3% Materials 11.1% Consumer Staples 10.9% Information Technology 10.5% Industrials 10.1% Healthcare 7.4% Short-Term Investments 5.5%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000) - ----------- ------- ----------- COMMON STOCK [93.5%] CHEMICALS [7.1%] Nalco Holding 18,300 $ 445 Spartech* 116,900 1,368 ----------- TOTAL CHEMICALS 1,813 =========== COMMERCIAL BANKS [4.5%] TCF Financial 36,600 584 Wilmington Trust 34,900 578 ----------- TOTAL COMMERCIAL BANKS 1,162 =========== CONSTRUCTION MATERIALS [1.8%] Eagle Materials 17,000 451 =========== DIVERSIFIED CONSUMER SERVICES [8.4%] Coinstar* 33,300 1,082 Washington Post, Cl B 2,400 1,066 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 2,148 =========== FOOD PRODUCTS [4.6%] Ralcorp Holdings* 17,200 1,166 =========== FOOD, BEVERAGE & TOBACCO [2.3%] Universal 11,300 596 =========== HEALTH CARE EQUIPMENT & SUPPLIES [3.3%] Teleflex 13,100 839 =========== HOTELS, RESTAURANTS & LEISURE [3.9%] Wendy's/Arby's Group, Cl A 197,139 986 =========== HOUSEHOLD PRODUCTS [6.0%] Central Garden & Pet, Cl A* 108,500 994 Scotts Miracle-Gro, Cl A 11,900 552 ----------- TOTAL HOUSEHOLD PRODUCTS 1,546 =========== INSURANCE [17.5%] Alleghany* 3,914 1,138 First American 17,100 579 Hilltop Holdings* 44,300 521 Symetra Financial* 35,000 461 White Mountains Insurance Group 5,000 1,775 ----------- TOTAL INSURANCE 4,474 =========== INTERNET & CATALOG RETAIL [2.1%] Liberty Media-Interactive, Ser A* 34,500 528 =========== INTERNET SOFTWARE & SERVICES [4.3%] United Online 147,100 1,100 =========== IT SERVICES [2.1%] Global Cash Access Holdings* 67,100 548 =========== LIFE SCIENCES TOOLS & SERVICES [4.1%] PerkinElmer 43,600 1,042 =========== MACHINERY [8.0%] Actuant, Cl A 24,100 471 Altra Holdings* 40,200 552 Crane 14,100 500 IDEX 15,400 510 ----------- TOTAL MACHINERY 2,033 =========== MEDIA [2.2%] Liberty Media - Capital, Ser A* 15,902 578 =========== PROFESSIONAL SERVICES [2.0%] GP Strategies* 62,600 523 =========== REAL ESTATE INVESTMENT TRUSTS [3.8%] Chimera Investment 251,000 976 ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 8 schedule of investments MARCH 31, 2010 (UNAUDITED) RCB SMALL CAP VALUE FUND (CONCLUDED)
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000) - ----------- ------------------------ ----------- SOFTWARE [4.0%] Fair Isaac 19,600 $ 497 PLATO Learning* 92,400 514 =========== TOTAL SOFTWARE 1,011 =========== SPECIALTY RETAIL [1.5%] Syms* 38,162 380 =========== TOTAL COMMON STOCK (Cost $18,325) 23,900 =========== REPURCHASE AGREEMENT (A) [5.4%] Morgan Stanley 0.060%, dated 03/31/10, repurchased on 04/01/10, repurchase price $1,382,259 (collateralized by a U.S. Treasury Note, par value $1,432,003, 3.875%, 04/15/29, with total market value $1,409,902) $ 1,382 1,382 ----------- TOTAL REPURCHASE AGREEMENT (Cost $1,382) 1,382 =========== TOTAL INVESTMENTS [98.9%] (Cost $19,707) $ 25,282 ===========
PERCENTAGES ARE BASED ON NET ASSETS OF $25,562 ($ THOUSANDS). * NON-INCOME PRODUCING SECURITY. (A) TRI-PARTY REPURCHASE AGREEMENT CL -- CLASS SER -- SERIES The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total --------- ------- ------- --------- Investments in Securities Common Stock $ 23,900 $ -- $ -- $ 23,900 Repurchase Agreement -- 1,382 -- 1,382 --------- ------- ------- --------- Total Investments in Securities $ 23,900 $ 1,382 $ -- $ 25,282 ========= ======= ======= =========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 9 schedule of investments MARCH 31, 2010 (UNAUDITED) OPPORTUNISTIC VALUE FUND SECTOR WEIGHTINGS*: [BAR GRAPH]
Financials 23.8% Healthcare 18.8% Energy 15.2% Information Technology 11.6% Industrials 10.3% Materials 8.2% Consumer Staples 7.4% Consumer Discretionary 4.7%
*Percentages based on total investments.
DESCRIPTION SHARES VALUE (000) - ----------- ------ ------------ COMMON STOCK [99.2%] AEROSPACE & DEFENSE [1.7%] Raytheon 5,300 $ 303 ============ BEVERAGES [2.4%] PepsiCo 6,400 423 ============ CHEMICALS [2.6%] Potash Corp of Saskatchewan 3,800 454 ============ COMMERCIAL BANKS [9.3%] BB&T 16,000 518 M&T Bank 3,100 246 US Bancorp 27,000 699 Wells Fargo 5,000 156 ------------ TOTAL COMMERCIAL BANKS 1,619 ============ COMMUNICATIONS EQUIPMENT [2.0%] Nokia ADR 22,000 342 ============ COMPUTERS & PERIPHERALS [2.4%] Dell* 28,000 420 ============ CONTAINERS & PACKAGING [3.5%] Crown Holdings* 10,000 270 Sealed Air 16,000 337 ------------ TOTAL CONTAINERS & PACKAGING 607 ============ DIVERSIFIED FINANCIAL SERVICES [3.2%] IntercontinentalExchange* 2,000 224 Nasdaq OMX Group* 16,000 338 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 562 ============ ELECTRICAL EQUIPMENT [2.6%] Baldor Electric 12,000 449 ============ ENERGY EQUIPMENT & SERVICES [5.4%] Exterran Holdings* 18,000 435 Unit* 12,000 507 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 942 ============ FOOD & STAPLES RETAILING [3.4%] SUPERVALU 10,200 170 Walgreen 11,300 419 ------------ TOTAL FOOD & STAPLES RETAILING 589 ============ FOOD PRODUCTS [1.5%] Del Monte Foods 18,000 263 ============ HEALTH CARE EQUIPMENT & SUPPLIES [4.5%] CareFusion* 16,300 431 Covidien 6,800 342 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 773 ============ HEALTH CARE PROVIDERS & SERVICES [8.9%] Laboratory Corp of America Holdings* 4,900 371 McKesson 5,000 329 Patterson 11,000 341 Quest Diagnostics 8,600 501 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 1,542 ============ HOTELS, RESTAURANTS & LEISURE [1.6%] Wendy's/Arby's Group, Cl A 54,000 270 ============ INDUSTRIAL CONGLOMERATES [3.5%] Tyco International 15,800 604 ============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 10 schedule of investments MARCH 31, 2010 (UNAUDITED) OPPORTUNISTIC VALUE FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000) - ----------- ------ ------------ INSURANCE [8.0%] Chubb 7,100 $ 368 HCC Insurance Holdings 18,000 497 Unum Group 21,000 520 ------------ TOTAL INSURANCE 1,385 ============ LEISURE EQUIPMENT & PRODUCTS [1.1%] Mattel 8,200 187 ============ LIFE SCIENCES TOOLS & SERVICES [1.5%] Pharmaceutical Product Development 11,000 261 ============ MACHINERY [2.4%] AGCO* 11,800 423 ============ MEDIA [2.0%] Time Warner 11,166 349 ============ METALS & MINING [2.0%] Cliffs Natural Resources 5,000 355 ============ OIL, GAS & CONSUMABLE FUELS [9.7%] Chesapeake Energy 12,200 288 ConocoPhillips 3,600 184 Newfield Exploration* 8,700 453 Southwestern Energy* 8,400 342 Spectra Energy 11,000 248 Valero Energy 8,500 168 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 1,683 ============ PHARMACEUTICALS [3.8%] Bristol-Myers Squibb 6,200 165 Mylan* 22,100 502 ------------ TOTAL PHARMACEUTICALS 667 ============ REAL ESTATE MANAGEMENT & DEVELOPMENT [3.1%] Brookfield Asset Management, Cl A 21,000 534 ============ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT [2.0%] Applied Materials 26,000 351 ============ SOFTWARE [5.1%] Microsoft 12,800 375 Symantec* 30,000 507 ------------ TOTAL SOFTWARE 882 ============ TOTAL COMMON STOCK (Cost $11,617) 17,239 ============ TOTAL INVESTMENTS [99.2%] (Cost $11,617) $ 17,239 ============
PERCENTAGES ARE BASED ON NET ASSETS OF $17,374 ($ THOUSANDS). * NON-INCOME PRODUCING SECURITY. ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total -------- ------- ------- -------- Investments in Securities Common Stock $ 17,239 $ -- $ -- $ 17,239 -------- ------- ------- -------- Total Investments in Securities $ 17,239 $ -- $ -- $ 17,239 ======== ======= ======= ========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 11 schedule of investments MARCH 31, 2010 (UNAUDITED) MULTI-ASSET FUND TYPE OF SECURITY WEIGHTINGS*: [BAR GRAPH]
Exchange Traded Funds 52.1% Affiliated Registered Investment Companies 25.2% Short-Term Investments 11.0% Registered Investment Companies 6.7% U.S. Government Agency Obligations 2.6% Municipal Bonds 2.4%
*Percentages based on total investments.
DESCRIPTION SHARES VALUE (000) - ----------- ------ ------------ EXCHANGE TRADED FUNDS [52.1%] iPATH S&P 500 VIX Short-Term Futures Fund 35,911 $ 755 iShares MSCI EAFE Index Fund 25,740 1,441 iShares S&P MidCap 400 Index Fund 19,473 1,533 SPDR Barclays Capital High Yield Bond Fund 26,470 1,053 SPDR S&P 500 Fund 32,657 3,821 Vanguard Emerging Markets 39,413 1,662 Vanguard Small Cap Value 29,825 1,790 Vanguard Value 58,154 2,935 ----------- TOTAL EXCHANGE TRADED FUNDS (Cost $13,525) 14,990 =========== AFFILIATED REGISTERED INVESTMENT COMPANIES [16.2%] CNI Corporate Bond Fund, Institutional Class 220,844 2,343 CNI Government Bond Fund, Institutional Class 121,614 1,281 CNI High Yield Bond Fund Institutional Class 129,273 1,051 ----------- TOTAL AFFILIATED REGISTERED INVESTMENT COMPANIES (Cost $4,587) 4,675 =========== REGISTERED INVESTMENT COMPANIES [15.6%] Alpine International Real Estate Equity Fund 39,587 875 Cohen & Steers International Realty Fund, Inc. 99,405 1,049 Oppenheimer International Bond Fund, Class A 266,794 1,715 PIMCO Emerging Markets Bond Fund, Institutional Class 80,272 854 ----------- TOTAL REGISTERED INVESTMENT COMPANIES (Cost $4,406) 4,493 ===========
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000) - ----------- ------------------------ ----------- U.S. GOVERNMENT AGENCY OBLIGATION [2.6%] FNMA (A) 0.141%, 07/13/10 $ 750 $ 750 ----------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATION (Cost $750) 750 =========== MUNICIPAL BOND [2.5%] CALIFORNIA [2.5%] State of California, Sub Ser A-2, RAN 3.000%, 06/23/10 700 703 ----------- TOTAL MUNICIPAL BOND (Cost $702) 703 =========== CASH EQUIVALENT [10.9%] Goldman Sachs Financial Square Funds - Government Fund, 0.030%* 3,152,815 3,153 ----------- TOTAL CASH EQUIVALENT (Cost $3,153) 3,153 =========== TOTAL INVESTMENTS [99.9%] (Cost $27,123) $ 28,764 ===========
PERCENTAGES ARE BASED ON NET ASSETS OF $28,795 ($ THOUSANDS). * THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010. (A) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31, 2010. EAFE -- EUROPE AUSTRALIASIA AND THE FAR EAST FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION MSCI -- MORGAN STANLEY CAPITAL INTERNATIONAL RAN -- REVENUE ANTICIPATION NOTE SER -- SERIES SPDR -- STANDARD & POOR'S DEPOSITARY RECEIPTS The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total -------- ------- ------- -------- Investments in Securities Exchange Traded Funds $ 14,990 $ -- $ -- $ 14,990 Affiliated Registered Investment Compnies 4,675 -- -- 4,675 Registered Investment Companies 4,493 -- -- 4,493 U.S. Government Agency Obligation -- 750 -- 750 Municipal Bond -- 703 -- 703 Cash Equivalent 3,153 -- -- 3,153 -------- ------- ------- -------- Total Investments in Securities $ 27,311 $ 1,453 $ -- $ 28,764 ======== ======= ======= ========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 12 schedule of investments MARCH 31, 2010 (UNAUDITED) CORPORATE BOND FUND ISSUER INDUSTRY WEIGHTINGS*: [BAR GRAPH]
Financials 35.6% Industrials 25.8% Banks 24.6% Utilities 3.6% Municipal Bonds 3.3% U.S. Government Mortgage-Backed Obligations 2.4% Telephone 2.0% Short-Term Investments 1.1% U.S. Treasury Obligations 0.6% U.S. Government Agency Obligations 0.5% Foreign Governments 0.5%
*Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- CORPORATE BONDS [90.8%] APPLICATIONS SOFTWARE [2.0%] Microsoft 4.200%, 06/01/19 $ 2,000 $ 2,026 =========== BANKS [20.8%] ANZ National Int'l (A) 3.250%, 04/02/12 2,000 2,071 Bank of America, MTN 3.125%, 06/15/12 1,500 1,559 Barclays Bank (A) 6.050%, 12/04/17 1,000 1,031 Barclays Bank, MTN (B) 4.500%, 03/10/17 1,950 1,926 Citigroup Funding 2.250%, 12/10/12 2,500 2,541 Deutsche Bank 7.250%, 10/15/11 500 536 4.875%, 05/20/13 1,940 2,079 JPMorgan Chase Bank 6.000%, 10/01/17 1,000 1,066 PNC Funding, FDIC Insured 1.875%, 06/22/11 1,150 1,163 US Bank 6.375%, 08/01/11 1,485 1,581 Wachovia Bank 4.800%, 11/01/14 3,270 3,366 Wells Fargo, FDIC Insured 3.000%, 12/09/11 2,200 2,272 ----------- TOTAL BANKS 21,191 =========== CHEMICALS [1.0%] Dow Chemical 8.550%, 05/15/19 835 1,010 =========== COMMUNICATION & MEDIA [3.1%] Comcast Cable Communications Holdings 8.375%, 03/15/13 160 185 News America Holdings 9.250%, 02/01/13 475 558 Time Warner Entertainment 8.375%, 03/15/23 775 946 Walt Disney, MTN 5.700%, 07/15/11 1,395 1,479 ----------- TOTAL COMMUNICATION & MEDIA 3,168 =========== COMPUTER SYSTEM DESIGN & SERVICES [5.9%] Cisco Systems 5.500%, 02/22/16 1,250 1,393 Dell 5.625%, 04/15/14 1,000 1,100 Hewlett-Packard 6.125%, 03/01/14 1,475 1,661 International Business Machines 7.625%, 10/15/18 1,500 1,847 ----------- TOTAL COMPUTER SYSTEM DESIGN & SERVICES 6,001 =========== DIVERSIFIED OPERATIONS [0.5%] 3M, MTN 4.375%, 08/15/13 500 536 =========== DRUGS [2.3%] Wyeth 6.950%, 03/15/11 2,170 2,302 =========== ELECTRIC UTILITIES [2.9%] Alabama Power 4.850%, 12/15/12 1,430 1,543 American Electric Power 5.250%, 06/01/15 490 524 Exelon 4.900%, 06/15/15 889 927 ----------- TOTAL ELECTRIC UTILITIES 2,994 ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 13 schedule of investments MARCH 31, 2010 (UNAUDITED) CORPORATE BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- FINANCE AUTO LOANS [2.8%] American Honda Finance, MTN (A) 5.125%, 12/15/10 $ 1,000 $ 1,030 Toyota Motor Credit 4.350%, 12/15/10 1,800 1,843 ----------- TOTAL FINANCE AUTO LOANS 2,873 =========== FINANCIAL SERVICES [16.0%] AXA Financial 7.750%, 08/01/10 1,000 1,022 Boeing Capital 6.500%, 02/15/12 930 1,016 CME Group 5.400%, 08/01/13 95 103 General Electric Capital, FDIC Insured 2.200%, 06/08/12 2,805 2,857 General Electric Capital, Ser A, MTN 6.000%, 06/15/12 2,180 2,363 GMAC 2.200%, 12/19/12 4,500 4,568 HSBC Finance 5.250%, 04/15/15 1,250 1,312 Irish Life & Permanent Group Holdings (A) 3.600%, 01/14/13 2,000 1,996 National Rural Utilities, Ser C, MTN 7.250%, 03/01/12 1,000 1,100 ----------- TOTAL FINANCIAL SERVICES 16,337 =========== FOOD, BEVERAGE & TOBACCO [3.9%] Anheuser-Busch 7.500%, 03/15/12 665 736 Bottling Group 5.500%, 04/01/16 1,000 1,099 4.625%, 11/15/12 1,435 1,541 General Mills 6.000%, 02/15/12 560 609 ----------- TOTAL FOOD, BEVERAGE & TOBACCO 3,985 =========== FOREIGN GOVERNMENTS [0.5%] United Mexican States, MTN 5.875%, 01/15/14 450 495 =========== INVESTMENT BANKER/BROKER DEALER [13.8%] Citigroup 5.850%, 08/02/16 1,000 1,025 5.500%, 02/15/17 250 247 Credit Suisse 5.500%, 08/15/13 1,250 1,368 Goldman Sachs Group 5.625%, 01/15/17 1,760 1,803 Jefferies Group 8.500%, 07/15/19 900 998 JPMorgan Chase 2.125%, 12/26/12 2,500 2,535 Macquarie Group (A) 6.000%, 01/14/20 2,000 1,995 Merrill Lynch 6.050%, 05/16/16 2,025 2,065 Morgan Stanley, MTN 5.500%, 01/26/20 2,060 2,015 ----------- TOTAL INVESTMENT BANKER/BROKER DEALER 14,051 =========== MULTI-LINE INSURANCE [1.7%] MetLife 7.717%, 02/15/19 1,490 1,740 =========== PETROLEUM & FUEL PRODUCTS [4.3%] ConocoPhillips Canada Funding I 5.625%, 10/15/16 2,000 2,226 Duke Capital 5.500%, 03/01/14 625 666 Shell International Finance BV 3.250%, 09/22/15 1,500 1,508 ----------- TOTAL PETROLEUM & FUEL PRODUCTS 4,400 =========== REAL ESTATE INVESTMENT TRUSTS [2.2%] Kimco Realty 6.875%, 10/01/19 1,080 1,138 ProLogis 7.625%, 08/15/14 1,000 1,093 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS 2,231 =========== RETAIL [3.1%] Home Depot 5.250%, 12/16/13 1,000 1,083 Kohl's 6.300%, 03/01/11 1,000 1,045 Kroger 5.500%, 02/01/13 450 486
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 14 schedule of investments MARCH 31, 2010 (UNAUDITED) CORPORATE BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- Target 5.875%, 07/15/16 $ 500 $ 567 ----------- TOTAL RETAIL 3,181 =========== SPECIAL PURPOSE BANKS [2.0%] Dexia Credit Local (A) 2.750%, 01/10/14 2,000 2,018 =========== TELEPHONES & TELECOMMUNICATIONS [2.0%] Deutsche Telekom International Finance 5.250%, 07/22/13 475 509 New Cingular Wireless Services 8.125%, 05/01/12 400 452 Verizon Communications 5.550%, 02/15/16 1,000 1,093 ----------- TOTAL TELEPHONES & TELECOMMUNICATIONS 2,054 =========== TOTAL CORPORATE BONDS (Cost $88,947) 92,593 =========== MUNICIPAL BONDS [3.3%] CALIFORNIA [2.3%] California State, City of Industry, Sales Tax Project, RB, NATL-RE 5.000%, 01/01/12 955 972 Irvine Ranch Water District, RB, ETM 8.180%, 03/15/14 1,200 1,316 ----------- TOTAL CALIFORNIA 2,288 =========== WISCONSIN [1.0%] De Pere, Unified School District, GO, FGIC Pre-Refunded @ 100 (C) 4.500%, 10/01/11 995 1,052 =========== TOTAL MUNICIPAL BONDS (Cost $3,287) 3,340 ===========
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000) - ----------- ------------------------ ----------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [2.4%] FHLMC REMIC, Ser 2982, Cl NB 5.500%, 02/15/29 $ 390 $ 401 FHLMC REMIC, Ser R004, Cl A1 5.125%, 12/15/13 369 383 FHLMC REMIC, Ser R015, Pool FHRR R015 AN, Cl AN 3.750%, 02/15/13 252 256 FNMA REMIC, Ser 2002-56, Cl MC 5.500%, 09/25/17 540 572 FNMA REMIC, Ser 2006-B1, Cl AB 6.000%, 06/25/16 126 132 FNMA REMIC, Ser 2007-B1, Cl BE 5.450%, 12/25/20 622 665 =========== TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (Cost $2,306) 2,409 =========== U.S. TREASURY OBLIGATION [0.6%] U.S. Treasury Inflation Protection Security 2.000%, 01/15/14 586 622 ----------- TOTAL U.S. TREASURY OBLIGATION (Cost $596) 622 =========== U.S. GOVERNMENT AGENCY OBLIGATION [0.5%] FHLMC 5.500%, 09/15/11 460 491 ----------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATION (Cost $477) 491 =========== CASH EQUIVALENT [1.0%] Goldman Sachs Financial Square Funds - Government Fund, 0.030%* 1,076,854 1,077 ----------- TOTAL CASH EQUIVALENT (Cost $1,077) 1,077 =========== TOTAL INVESTMENTS [98.6%] (Cost $96,690) $ 100,532 ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 15 schedule of investments MARCH 31, 2010 (UNAUDITED) CORPORATE BOND FUND (CONCLUDED) PERCENTAGES ARE BASED ON NET ASSETS OF $101,912 ($ THOUSANDS). * THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010. (A) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONS. ON MARCH 31, 2010, THE VALUE OF THESE SECURITIES AMOUNTED TO $10,141(000), REPRESENTING 9.9% OF THE NET ASSETS OF THE FUND. (B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31, 2010. (C) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE. CL -- CLASS ETM -- ESCROW TO MATURITY FDIC -- FEDERAL DEPOSITARY INSURANCE CORPORATION FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION GO -- GENERAL OBLIGATION MTN -- MEDIUM TERM NOTE NATL-RE -- NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION (FORMERLY MUNICIPAL BOND INSURANCE COMPANY 'MBIA') RB -- REVENUE BOND REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT SER -- SERIES The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total ------- ------- ------- --------- Investments in Securities Corporate Bonds $ -- $ 92,593 $ -- $ 92,593 Municipal Bonds -- 3,340 -- 3,340 U.S. Government Mortgage-Backed Obligations -- 2,409 -- 2,409 U.S. Treasury Obligation -- 622 -- 622 U.S. Government Agency Obligation -- 491 -- 491 Cash Equivalent 1,077 -- -- 1,077 ------- -------- ------- --------- Total Investments in Securities $ 1,077 $ 99,455 $ -- $ 100,532 ======= ======== ======= =========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 16 schedule of investments MARCH 31, 2010 (UNAUDITED) GOVERNMENT BOND FUND TYPE OF SECURITY WEIGHTINGS*: [BAR GRAPH] U.S. Government Agency Obligations 63.1% U.S. Government Mortgage-Backed Obligations 34.1% Short-Term Investments 2.8%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ------------- U.S. GOVERNMENT AGENCY OBLIGATIONS [65.8%] FFCB 3.600%, 03/22/17 $ 5,000 $ 4,995 FHLB 5.250%, 06/18/14 4,000 4,448 4.805%, 08/20/15 12,068 12,922 3.500%, 12/09/16 5,000 4,999 3.250%, 09/12/14 7,000 7,197 3.125%, 12/13/13 5,000 5,196 3.000%, 12/30/12 (A) 5,000 5,037 2.450%, 02/12/14 5,000 5,007 1.850%, 12/21/12 1,500 1,494 1.125%, 10/15/10 (A) 4,980 4,986 FHLMC, MTN 2.000%, 06/18/12 (A) 5,000 4,976 2.000%, 11/05/12 5,000 5,021 FNMA 4.625%, 05/01/13 7,000 7,473 3.100%, 03/22/16 5,000 4,984 3.000%, 07/28/14 9,380 9,450 2.900%, 04/07/14 8,950 9,004 2.625%, 12/10/14 5,180 5,126 ------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATION (Cost $97,102) 102,315 ============= U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [30.7%] FHLMC REMIC, Ser R002, Cl AH 4.750%, 07/15/15 734 750 FHLMC REMIC, Ser R003, Cl AG 5.125%, 10/15/15 1,011 1,037 FHLMC REMIC, Ser R004, Cl A1 5.125%, 12/15/13 7,349 7,642 FHLMC REMIC, Ser R005, Cl AB 5.500%, 12/15/18 566 592 FHLMC REMIC, Ser R007, Cl AC 5.875%, 05/15/16 664 680 FHLMC REMIC, Ser R009, Cl AK 5.750%, 12/15/18 645 674 FHLMC REMIC, Ser R010, Cl AB 5.500%, 12/15/19 2,608 2,727 FHLMC REMIC, Ser R011, Cl AB 5.500%, 12/15/20 9,604 10,064 FHLMC REMIC, Ser R012, Cl AB 5.500%, 12/15/20 891 930 FHLMC REMIC, Ser R013, Cl AB 6.000%, 12/15/21 1,021 1,063 FHLMC REMIC, Ser R014, Cl AL 5.500%, 10/15/14 3,646 3,704 FHLMC REMIC, Ser R015, Cl AN 3.750%, 02/15/13 4,423 4,480 FHLMC REMIC, Ser R016, Cl AM 5.125%, 06/15/18 2,201 2,286 FNMA, Ser 2005-25, Cl VH 5.000%, 04/25/16 4,066 4,358 FNMA ARM (B) 4.548%, 03/01/34 477 496 FNMA REMIC, Ser 2005-119, Cl DG 5.500%, 01/25/36 92 92 FNMA REMIC, Ser R009, Cl AJ 5.750%, 12/15/18 5,100 5,320 GNMA 8.000%, 08/15/22 11 13 7.500%, 06/15/24 5 5 7.500%, 05/15/26 5 6 7.500%, 04/15/32 31 34 7.000%, 12/15/16 12 13 6.000%, 01/15/29 12 13 GNMA ARM (B) 3.000%, 08/20/35 111 113 2.625%, 04/20/35 529 540 ------------- TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (Cost $52,247) 47,632 =============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 17 schedule of investments MARCH 31, 2010 (UNAUDITED) GOVERNMENT BOND FUND (CONCLUDED)
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000) - ----------- ------------------------ ------------- CASH EQUIVALENT [1.5%] Goldman Sachs Financial Square Funds - Government Fund, 0.030%* 2,296,828 $ 2,297 ------------- TOTAL CASH EQUIVALENT (Cost $2,297) 2,297 ============= REPURCHASE AGREEMENT (C) [1.3%] Barclays 0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $2,000,001 (collateralized by U.S. Government obligation, par value $1,784,300; with total market value $2,040,075) $ 2,000 2,000 ============= TOTAL REPURCHASE AGREEMENT (Cost $2,000) 2,000 ============= TOTAL INVESTMENTS [99.3%] (Cost $153,646) $ 154,244 =============
PERCENTAGES ARE BASED ON NET ASSETS OF $155,398 ($ THOUSANDS). * THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010. (A) STEP BOND -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31, 2010. THE COUPON ON A STEP BOND CHANGES ON A SPECIFIC DATE. (B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31, 2010. (C) TRI-PARTY REPURCHASE AGREEMENT ARM -- ADJUSTABLE RATE MORTGAGE CL -- CLASS FFCB -- FEDERAL FARM CREDIT BANK FHLB -- FEDERAL HOME LOAN BANK FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MTN -- MEDIUM TERM NOTE REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT SER -- SERIES The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total ------- --------- ------- --------- Investments in Securities U.S. Government Agency Obligations $ -- $ 102,315 $ -- $ 102,315 U.S. Government Mortgage-Backed Obligations -- 47,632 -- 47,632 Cash Equivalent 2,297 -- -- 2,297 Repurchase Agreement -- 2,000 -- 2,000 ------- --------- ------- --------- Total Investments in Securities $ 2,297 $ 151,947 $ -- $ 154,244 ======= ========= ======= =========
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:
Investments in Securities -------------- Beginning balance as of October 1, 2009 $ 2,618 Accrued discounts/premiums -- Realized gain/(loss) -- Change in unrealized -- appreciation/(depreciation) Net purchases/sales -- Net transfer in and/or out of Level 3 (2,618) ---------- Ending balance as of March 31, 2010 $ -- ==========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 18 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT BOND FUND ISSUER INDUSTRY WEIGHTINGS*: General Revenue 23.8% General Obligation 15.9% Education 14.7% Power 11.3% Public Facilities 10.0% Water 10.0% Transportation 4.7% Healthcare 3.2% Industrial Development 2.7% Short-Term Investments 1.9% Housing 1.8%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- MUNICIPAL BONDS [97.5%] ARIZONA [2.1%] Arizona State, School Facilities Board, Ser C, COP, AGM Callable 09/01/14 @ 100 5.000%, 09/01/15 $ 750 $ 826 ========= CALIFORNIA [83.5%] Antelope Valley, Unified High School District, Ser A, GO, NATL-RE Callable 08/01/12 @ 101 5.000%, 08/01/23 250 257 Azusa, Redevelopment Agency, Mortgage-Backed Securities Program, Ser A, RB, FNMA, ETM (A) 6.875%, 10/01/12 200 228 Banning, Financing Authority, Election Systems Project, RB, XLCA Callable 06/01/17 @ 100 5.000%, 06/01/22 805 799 Bay Area, Infrastructure Financing Authority, State Payment Acceleration Project, RB, XLCA Callable 08/01/11 @ 100 5.000%, 08/01/14 500 510 Bay Area, Infrastructure Financing Authority, State Payment Acceleration Project, RB, NATL-RE FGIC Callable 08/01/14 @ 100 5.000%, 08/01/17 350 356 Burbank, Public Financing Authority, Golden State Redevelopment Project, Ser A,TA, AMBAC Callable 12/01/13 @ 100 5.250%, 12/01/18 100 105 Burbank, Public Financing Authority, Golden State Redevelopment Project, Ser A,TA, AMBAC Pre-Refunded @ 100 (B) 5.250%, 12/01/13 75 85 California State, Department of Water Resources, Power Supply Project, Ser H, RB, AGM Callable 05/01/18 @ 100 5.000%, 05/01/21 750 831 California State, Department of Water Resources,Water Systems Project, Ser J-2, RB 7.000%, 12/01/12 500 581 California State, Department of Water Resources,Water Systems Project, Ser Y, RB, NATL-RE FGIC Callable 06/01/13 @ 100 5.250%, 12/01/19 500 545 California State, Economic Recovery Authority, Ser A, GO, NATL-RE Callable 07/01/14 @ 100 5.000%, 07/01/15 500 550 California State, Educational Facilities Authority, Stanford University Project, Ser T-4, RB 5.000%, 03/15/14 350 397 California State, GO Callable 02/01/12 @ 100 5.000%, 02/01/18 175 180 California State, GO Pre-Refunded @ 100 (B) 5.250%, 09/01/10 10 10 California State, GO Pre-Refunded @ 100 (B) 5.250%, 09/01/10 25 26 California State, GO Pre-Refunded @ 100 (B) 5.250%, 10/01/10 20 21 California State, GO 5.500%, 04/01/19 500 542 California State, GO 5.000%, 03/01/19 500 524
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 19 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- California State, Ser A, GO, NATL-RE FGIC Callable 07/01/11 @ 100 5.000%, 07/01/17 $ 500 $ 520 California State, Ser B, GO (D) 4.000%, 07/01/23 750 798 California State, Infrastructure & Economic Authority, Bay Area Toll Bridges Project, Ser A, RB, AGM Pre-Refunded @ 100 (B) 5.250%, 07/01/13 125 141 California State, Public Works Board Lease, Department of Corrections Project, Ser B, RB, NATL-RE Callable 05/06/10 @ 100 5.000%, 09/01/21 100 98 California State, Public Works Board Lease, Department of Corrections-Administration Project, Ser A, RB, AMBAC Callable 03/01/12 @ 100 5.250%, 03/01/18 155 157 California State, Public Works Board Lease, Department of Mental Health Project, Ser A, RB 5.250%, 06/01/13 200 217 Carlsbad, Public Financing Authority, Municipal Golf Course Project, Ser A, RB, AMBAC 4.500%, 09/01/16 350 384 Castaic Lake,Water Agency,Water Systems Improvement Project, Ser A, COP, NATL-RE 7.000%, 08/01/13 300 350 Corona, Public Financing Authority, City Hall Project, Ser B, RB, NATL-RE Callable 09/01/12 @ 100 5.250%, 09/01/16 350 363 Culver City, Redevelopment Finance Authority,TA, AMBAC 5.500%, 11/01/14 65 67 Dry Creek, Joint Elementary School District, Ser A, GO, AGM 0.000%, 08/01/11 200 196 Escondido, Union School District, Refunding & Financing Project, COP, NATL-RE 4.750%, 07/01/19 735 797 Fresno, Unified School District, Election 2001 Project, Ser D, GO, NATL-RE Callable 08/01/13 @ 102 5.000%, 08/01/17 200 212 Gilroy, Unified School District, GO, NATL-RE FGIC Callable 08/01/13 @ 100 5.250%, 08/01/19 800 842 Golden State,Tobacco Settlement, Ser A, RB, AMBAC Callable 06/01/10 @ 100 5.000%, 06/01/20 500 490 Golden State,Tobacco Settlement, Ser A-1, RB Pre-Refunded @ 100 (B) 6.750%, 06/01/13 920 1,069 Hawthorne, School District, COP, AGM Pre-Refunded @ 101 (B) 6.000%, 11/01/10 455 466 Jefferson Unified High School District, Ser A, GO, NATL-RE FGIC 5.000%, 08/01/14 200 217 Kern, High School District, GO, ETM 7.100%, 08/01/12 290 331 Long Beach Community College District, Ser A, GO 9.850%, 01/15/13 500 595 Los Angeles County, Metropolitan Transportation Authority, Proposition C, Ser A, RB, NATL-RE Callable 07/01/14 @ 100 5.000%, 07/01/16 200 220 Los Angeles County, Metropolitan Transportation Authority, Ser B, RB, AGM Callable 07/01/11 @ 101 5.250%, 07/01/15 250 265 Los Angeles County, Sanitation Districts Financing Authority, Capital Projects (District #14), Sub-Ser B, RB, NATL-RE FGIC 3.750%, 10/01/14 175 183
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 20 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- Los Angeles, Department of Water & Power, Power Systems Project, Ser A Sub-Ser-Ser A-1, RB, NATL-RE 5.000%, 07/01/12 $ 665 $ 724 Los Angeles, Municipal Improvement Authority, Central Library Project, Ser A, RB, NATL-RE Callable 06/01/12 @ 100 5.500%, 06/01/18 500 534 Los Angeles, Municipal Improvement Authority, Central Library Project, Ser A, RB, NATL-RE 5.250%, 06/01/12 300 323 Los Angeles, Municipal Improvement, Ser E, RB 5.000%, 09/01/15 200 222 Los Angeles, Ser A, GO, AGM Callable 09/01/12 @ 100 5.000%, 09/01/20 750 803 Los Angeles, Unified School District, COP, AMBAC 5.000%, 10/01/12 750 804 Los Angeles, Unified School District, Ser A-1, GO, NATL-RE Callable 07/01/14 @ 100 5.000%, 07/01/17 125 135 Los Angeles,Wastewater Systems Authority, Ser A, RB 5.000%, 06/01/14 750 844 North Orange County, Community College District, Ser A, GO, NATL-RE Pre-Refunded @ 101 (B) 5.375%, 08/01/12 525 581 Northern California, Power Agency, Hydroelectric Project, Ser A, RB, NATL-RE Pre-Refunded @ 100 (B) 5.125%, 07/01/10 750 759 Oakley, Civic Center Project, COP 4.000%, 05/01/12 230 239 Orange County, Public Financing Authority, RB, NATL-RE 5.000%, 07/01/17 1,000 1,087 Orange County, Sanitation District, Ser A, COP 3.000%, 02/01/17 500 499 Oxnard, School District, Election 2006 Project, Ser A, GO, CIFG 6.750%, 08/01/11 300 323 Pinole, Redevelopment Agency, Pinole Vista Redevelopment Project,TA, AGM Callable 05/06/10 @ 101 5.250%, 08/01/14 100 101 Port of Oakland, Ser C, RB, NATL-RE 5.000%, 11/01/15 450 493 Redwoods, Community College District, 2004 Election Project, Ser A, GO, NATL-RE Callable 08/01/14 @ 100 5.000%, 08/01/23 420 432 Sacramento County, Sanitation District Authority, Sub-Ser B, RB Callable 04/05/10 @ 100 (C) (D) 0.280%, 12/01/37 500 500 Sacramento, City Financing Authority, EPA Building Project, Ser A, RB, AMBAC Callable 05/06/10 @ 100 4.750%, 05/01/17 525 528 Sacramento, Municipal Utility District, RB, NATL-RE Callable 08/15/13 @ 100 5.000%, 08/15/19 500 520 Sacramento, Municipal Utility District, Ser T, RB, NATL-RE FGIC Callable 05/15/14 @ 100 5.250%, 05/15/22 805 836 San Diego, Public Facilities Financing Authority, Ser B, RB 5.000%, 05/15/14 750 840 San Diego, Unified School District, Election 1998 Project, Ser D, GO, FGIC Callable 07/01/12 @ 100 5.000%, 07/01/27 500 541 San Diego, Unified School District, Election 1998 Project, Ser E, GO, AGM Callable 07/01/13 @ 101 5.250%, 07/01/16 100 113 San Francisco (City & County), Public Utilities Commission, Ser B, RB 5.000%, 11/01/19 750 851
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 21 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- San Francisco City & County, Redevelopment Agency, Ser B,TA, NATL-RE FGIC Callable 08/01/13 @ 100 5.250%, 08/01/18 $ 600 $ 614 San Francisco, Bay Area Transit Financing Authority, Ser A, RB, NATL-RE Callable 07/01/15 @ 100 5.000%, 07/01/24 550 583 Santa Margarita, Dana Point Authority, Ser A, RB, AMBAC Callable 08/01/14 @ 100 5.000%, 08/01/15 165 183 Solano County, COP, NATL-RE Pre-Refunded @ 100 (B) 5.250%, 11/01/12 100 110 Southern California, Metropolitan Water District Authority, Ser A, RB 5.750%, 07/01/21 280 326 Southern Kern, Unified School District, Ser A, GO, NATL-RE FGIC Callable 11/01/13 @ 100 4.500%, 11/01/18 220 224 Tamalpais, Unified High School District, GO, NATL-RE Callable 08/01/11 @ 101 4.875%, 08/01/17 100 103 University of California, Multiple Purpose Projects, Ser Q, RB, AGM Callable 09/01/11 @ 101 5.000%, 09/01/22 500 524 University of California, Ser B, RB, AGM Callable 05/15/13 @ 101 5.000%, 05/15/20 750 805 University of California, UCLA Medical Center Project, Ser B, RB, AMBAC Pre-Refunded @ 100 (B) 5.500%, 05/15/14 500 579 --------- TOTAL CALIFORNIA 33,208 ========= ILLINOIS [0.8%] Cook County Forest Preservation District, GO, AMBAC Callable 11/15/14 @ 100 5.250%, 11/15/15 300 334 ========= MISSOURI [0.6%] St Louis, Parking Facilities Authority, Downtown Parking Facilities Project, Sub-Ser A, RB Pre-Refunded @ 100 (B) 6.000%, 02/01/12 200 217 ========= NEW JERSEY [0.9%] New Jersey State,Turnpike Authority, Ser C, RB, NATL-RE, ETM 6.500%, 01/01/16 315 368 ========= NEW MEXICO [1.0%] Santa Fe, Educational Facilities Authority, College of Santa Fe Project, RB Pre-Refunded @ 100 (B) 5.750%, 10/01/14 350 407 ========= NEW YORK [2.7%] New York City Housing Development, Ser F, RB Callable 05/01/11 @ 100 1.950%, 11/01/12 500 500 New York State, Local Assistance Correction Authority, Ser E, RB 6.000%, 04/01/14 500 564 --------- TOTAL NEW YORK 1,064 ========= SOUTH CAROLINA [2.1%] Columbia,Tourism Development Fee Pledge Project, COP, AMBAC Callable 06/01/13 @ 100 5.250%, 06/01/16 350 369 South Carolina, Jobs & Economic Development Authority, Palmetto Health Project, Ser C, RB Pre-Refunded @ 100 (B) 6.875%, 08/01/13 400 469 --------- TOTAL SOUTH CAROLINA 838 =========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 22 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT BOND FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000) - ----------- ------------------------ ----------- TEXAS [0.3%] San Angelo,Waterworks & Sewer System Authority, Refunding & Improvements Projects, RB, AGM Callable 04/01/11 @ 100 5.250%, 04/01/19 $ 100 $ 102 ========== WASHINGTON [0.9%] King County, NJB Properties Project, Ser A, RB 5.000%, 12/01/14 325 367 ========== WEST VIRGINIA [1.3%] West Virginia State, Economic Development Authority, Correctional Juvenile Project, Ser A, RB, NATL-RE Callable 06/01/12 @ 101 5.500%, 06/01/17 500 520 ========== PUERTO RICO [1.3%] Puerto Rico Sales Tax Financing, Sub-Ser A, RB 4.000%, 08/01/16 500 527 ========== TOTAL MUNICIPAL BONDS (Cost $37,966) 38,778 ========== CASH EQUIVALENT [1.9%] Federated California Municipal Money Market Fund, Cl I, 0.090%* 733,017 733 ---------- TOTAL CASH EQUIVALENT (Cost $733) 733 ========== TOTAL INVESTMENTS [99.4%] (Cost $38,699) $ 39,511 ==========
PERCENTAGES ARE BASED ON NET ASSETS OF $39,769 ($ THOUSANDS). * THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010. (A) SECURITIES ARE COLLATERALIZED UNDER AN AGREEMENT FROM FNMA. (B) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE. (C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR BANK OR FINANCIAL INSTITUTION. (D) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31, 2010. AGM -- ASSURED GUARANTY MUNICIPAL AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY CIFG -- CDC IXIS FINANCIAL GUARANTEE CL -- CLASS COP -- CERTIFICATE OF PARTICIPATION ETM -- ESCROW TO MATURITY FGIC -- FINANCIAL GUARANTEE INSURANCE COMPANY FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION GO -- GENERAL OBLIGATION NATL-RE -- NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION (FORMERLY MBIA-IL) RB -- REVENUE BOND SER -- SERIES TA -- TAX ALLOCATION XLCA -- XL CAPITAL ASSURANCE The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total ------- -------- ------- -------- Investments in Securities Municipal Bonds $ -- $ 38,778 $ -- $ 38,778 Cash Equivalent 733 -- -- 733 ------- -------- ------- -------- Total Investments in Securities $ 733 $ 38,758 $ -- $ 39,511 ======= ======== ======= ========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 23 schedule of investments MARCH 31, 2010 (UNAUDITED) HIGH YIELD BOND FUND ISSUER INDUSTRY WEIGHTINGS*: [BAR GRAPH] Industrials 61.1% Financials 13.7% Short-Term Investments 11.0% Utilities 5.0% Telecommunication Services 3.8% Transportation 3.3% Tax Exempt 2.0% Common Stock 0.1%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- CORPORATE BONDS [92.8%] ADVERTISING AGENCIES [1.0%] MDC Partners (A) 11.000%, 11/01/16 $ 450 $ 487 =========== AEROSPACE & DEFENSE [2.2%] Global Aviation Holdings (A) 14.000%, 08/15/13 500 508 L-3 Communications 5.875%, 01/15/15 200 204 Sequa (A) 13.500%, 12/01/15 5 5 Wyle Services (A) 10.500%, 04/01/18 325 325 ----------- TOTAL AEROSPACE & DEFENSE 1,042 =========== AIRLINES [2.9%] DAE Aviation Holdings (A) 11.250%, 08/01/15 150 140 Delta Air Lines (A) 12.250%, 03/15/15 400 426 United Airlines 10.400%, 11/01/16 280 301 9.875%, 08/01/13 (A) 245 257 9.750%, 01/15/17 215 227 ----------- TOTAL AIRLINES 1,351 =========== ATHLETIC EQUIPMENT [0.4%] Easton-Bell Sports (A) 9.750%, 12/01/16 190 200 =========== AUTO RENT & LEASE [0.8%] Avis Budget Car Rental 7.750%, 05/15/16 100 98 H&E Equipment Services 8.375%, 07/15/16 100 97 Hertz 10.500%, 01/01/16 150 161 ----------- TOTAL AUTO RENT & LEASE 356 =========== AUTOMOTIVE [0.4%] UCI Holdco (B) 8.257%, 12/15/13 212 199 =========== AUTOPARTS [0.2%] Asbury Automotive Group 7.625%, 03/15/17 100 95 =========== B2B/E-COMMERCE [1.0%] GXS Worldwide (A) 9.750%, 06/15/15 500 481 =========== BANKS [1.0%] CIT Group 7.000%, 05/01/16 500 461 =========== BROADCASTING & CABLE [3.0%] Allbritton Communications 7.750%, 12/15/12 72 72 Atlantic Broadband Finance 9.375%, 01/15/14 100 100 Barrington Broadcasting Group 10.500%, 08/15/14 100 88 Bonten Media Acquisition (A) 9.000%, 06/01/15 165 80 Coleman Cable (A) 9.000%, 02/15/18 450 455 CSC Holdings 7.625%, 07/15/18 100 104 Fisher Communications 8.625%, 09/15/14 150 147 Local TV Finance (A) 9.250%, 06/15/15 110 72 Newport Television (A) 13.000%, 03/15/17 114 91 Nexstar Finance Holdings (D) 11.375%, 04/01/13 128 114 Univision Communications (A) 12.000%, 07/01/14 81 89 ----------- TOTAL BROADCASTING & CABLE 1,412 =========== BUILDING & CONSTRUCTION [0.1%] Esco (A) 8.625%, 12/15/13 50 50 International Utility Structures (C) (F) 10.750%, 02/01/08 100 1 ----------- TOTAL BUILDING & CONSTRUCTION 51 ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 24 schedule of investments MARCH 31, 2010 (UNAUDITED) HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- CHEMICALS [1.6%] CPG International I 10.500%, 07/01/13 $ 285 $ 285 Innophos 8.875%, 08/15/14 100 103 Momentive Performance Materials 9.750%, 12/01/14 100 100 Polymer Holdings (D) (E) (F) 18.929%, 07/15/14 250 253 ----------- TOTAL CHEMICALS 741 =========== COAL MINING [0.9%] Consol Energy (A) 8.250%, 04/01/20 400 411 =========== COMMERCIAL SERVICES [1.2%] ARAMARK 8.500%, 02/01/15 150 154 DI Finance 9.500%, 02/15/13 150 152 Iron Mountain 8.750%, 07/15/18 150 157 Tube City IMS 9.750%, 02/01/15 100 98 ----------- TOTAL COMMERCIAL SERVICES 561 =========== COMPUTER SYSTEM DESIGN & SERVICES [1.2%] Activant Solutions 9.500%, 05/01/16 100 96 Compucom Systems (A) 12.500%, 10/01/15 240 254 Terremark Worldwide (A) 12.000%, 06/15/17 200 230 ----------- TOTAL COMPUTER SYSTEM DESIGN & SERVICES 580 =========== CONGLOMERATE [0.2%] KAR Auction Services 8.750%, 05/01/14 100 102 =========== CONSUMER PRODUCTS & SERVICES [2.4%] Central Garden & Pet 9.125%, 02/01/13 100 102 Jarden 7.500%, 05/01/17 75 76 MSX International (A) 12.500%, 04/01/12 100 78 Prestige Brands (A) 8.250%, 04/01/18 280 287 Sealy Mattress 8.250%, 06/15/14 200 200 Southern States Cooperative (A) 11.000%, 11/01/11 250 250 Steinway Musical Instruments (A) 7.000%, 03/01/14 100 96 Yankee Acquisition, Ser B 9.750%, 02/15/17 50 52 ----------- TOTAL CONSUMER PRODUCTS & SERVICES 1,141 =========== CONTAINERS & PACKAGING [0.8%] Exopack Holding 11.250%, 02/01/14 100 104 Intertape Polymer US (F) 8.500%, 08/01/14 100 85 Solo Cup 8.500%, 02/15/14 200 196 ----------- TOTAL CONTAINERS & PACKAGING 385 =========== DATA PROCESSING/MGMT [0.7%] First Data 9.875%, 09/24/15 400 345 =========== DISTRIBUTION/WHOLESALE [2.2%] Intcomex (A) 13.250%, 12/15/14 600 607 VWR Funding 10.250%, 07/15/15 423 448 ----------- TOTAL DISTRIBUTION/WHOLESALE 1,055 =========== DIVERSIFIED OPERATIONS [1.0%] Amsted Industries (A) 8.125%, 03/15/18 450 450 =========== ELECTRIC UTILITIES [4.0%] AES 8.000%, 10/15/17 100 102 8.000%, 06/01/20 50 50 CMS Energy 8.750%, 06/15/19 50 56 6.875%, 12/15/15 150 160 Edison Mission Energy 7.200%, 05/15/19 150 104 7.000%, 05/15/17 350 244 Energy Future Holdings 10.875%, 11/01/17 250 186 ESI Tractebel Acquisition, Ser B 7.990%, 12/30/11 35 35
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 25 schedule of investments MARCH 31, 2010 (UNAUDITED) HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- Mirant North America 7.375%, 12/31/13 $ 150 $ 150 NRG Energy 7.375%, 02/01/16 100 99 PNM Resources 9.250%, 05/15/15 100 106 RRI Energy 7.625%, 06/15/14 200 187 United Maritime Group (A) 11.750%, 06/15/15 400 410 ----------- TOTAL ELECTRIC UTILITIES 1,889 =========== ENTERPRISE SOFTWARE/SERV [0.8%] JDA Software Group (A) 8.000%, 12/15/14 375 390 =========== ENTERTAINMENT & GAMING [9.8%] AMC Entertainment 11.000%, 02/01/16 100 107 CCM Merger (A) 8.000%, 08/01/13 175 152 Choctaw Resort Development Enterprise (A) 7.250%, 11/15/19 182 124 Chukchansi Economic Development Authority (A) 8.000%, 11/15/13 250 205 4.024%, 11/15/12 (B) 200 156 Circus & Eldorado Joint Venture/Silver Legacy Capital 10.125%, 03/01/12 150 130 Harrah's Operating 11.250%, 06/01/17 250 269 10.750%, 02/01/16 250 208 Indianapolis Downs & Capital (A) 11.000%, 11/01/12 100 66 Inn of the Mountain Gods Resort & Casino (C) 12.000%, 11/15/10 150 72 Isle of Capri Casinos 7.000%, 03/01/14 557 476 Jacobs Entertainment 9.750%, 06/15/14 75 70 Mashantucket Western Pequot Tribe (A) (C) 8.500%, 11/15/15 170 43 MGM Mirage 11.375%, 03/01/18 (A) 250 241 6.750%, 09/01/12 100 95 Mohegan Tribal Gaming Authority 7.125%, 08/15/14 100 78 Penn National Gaming (A) 8.750%, 08/15/19 250 254 River Rock Entertainment Authority 9.750%, 11/01/11 600 554 San Pasqual Casino (A) 8.000%, 09/15/13 100 95 Scientific Games 6.250%, 12/15/12 100 99 Seneca Gaming 7.250%, 05/01/12 200 198 Shingle Springs Tribal Gaming Authority (A) 9.375%, 06/15/15 100 83 Snoqualmie Entertainment Authority (A) 9.125%, 02/01/15 200 154 4.136%, 02/01/14 (B) 200 146 Speedway Motorsports 6.750%, 06/01/13 100 100 Tunica-Biloxi Gaming Authority (A) 9.000%, 11/15/15 125 119 Vail Resorts 6.750%, 02/15/14 100 100 Waterford Gaming (A) 8.625%, 09/15/14 73 50 Wynn Las Vegas Capital 6.625%, 12/01/14 175 175 ----------- TOTAL ENTERTAINMENT & GAMING 4,619 =========== FINANCIAL SERVICES [3.3%] GMAC 6.750%, 12/01/14 425 422 Icahn Enterprises (A) 7.750%, 01/15/16 250 241 International Lease Finance 8.625%, 09/15/15 (A) 290 296 6.375%, 03/25/13 235 230 International Lease Finance, MTN 5.650%, 06/01/14 115 107 Pinnacle Foods Finance (A) 9.250%, 04/01/15 250 256 ----------- TOTAL FINANCIAL SERVICES 1,552 =========== FOOD, BEVERAGE & TOBACCO [0.7%] B&G Foods 7.625%, 01/15/18 200 203
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 26 schedule of investments MARCH 31, 2010 (UNAUDITED) HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- Beverages & More (A) 9.250%, 03/01/12 $ 100 $ 100 Leiner Health Products (C) 11.000%, 06/01/12 100 9 Le-Nature's (A) (C) (F) 0.000%, 06/15/13 150 22 ----------- TOTAL FOOD, BEVERAGE & TOBACCO 334 =========== GAS/NATURAL GAS [0.3%] El Paso 7.000%, 06/15/17 150 153 =========== INSURANCE [4.0%] Delphi Financial Group 7.875%, 01/31/20 300 310 National Life Insurance (A) 10.500%, 09/15/39 150 160 Protective Life 8.450%, 10/15/39 225 236 Torchmark 9.250%, 06/15/19 550 659 USI Holdings (A) 9.750%, 05/15/15 407 385 4.125%, 11/15/14 (B) 125 106 ----------- TOTAL INSURANCE 1,856 =========== INVESTMENT BANKER/BROKER DEALER [1.5%] Nuveen Investments (F) 10.500%, 11/15/15 700 679 =========== INVESTMENT COMPANIES [1.7%] Allied Capital 6.625%, 07/15/11 (F) 715 701 6.000%, 04/01/12 100 96 =========== TOTAL INVESTMENT COMPANIES 797 =========== MACHINERY [2.1%] Baldor Electric 8.625%, 02/15/17 125 132 Case New Holland 7.125%, 03/01/14 100 101 CPM Holdings (A) 10.625%, 09/01/14 130 139 Douglas Dynamics (A) 7.750%, 01/15/12 440 444 Terex 8.000%, 11/15/17 75 73 7.375%, 01/15/14 100 102 ----------- TOTAL MACHINERY 991 =========== MEDICAL PRODUCTS & SERVICES [2.2%] Apria Healthcare Group (A) 12.375%, 11/01/14 200 219 Bio-Rad Laboratories 7.500%, 08/15/13 100 102 Community Health Systems 8.875%, 07/15/15 150 155 HCA 9.250%, 11/15/16 50 53 5.750%, 03/15/14 100 95 Omnicare 6.750%, 12/15/13 150 151 Talecris Biotherapeutics Holdings (A) 7.750%, 11/15/16 250 251 ----------- TOTAL MEDICAL PRODUCTS & SERVICES 1,026 =========== METALS & MINING [0.6%] Noranda Aluminium Acquisition (B) 4.524%, 05/15/15 160 127 Novelis 7.250%, 02/15/15 150 145 ----------- TOTAL METALS & MINING 272 =========== MISCELLANEOUS BUSINESS SERVICES [1.9%] Affinion Group 11.500%, 10/15/15 100 102 10.125%, 10/15/13 400 410 Carriage Services 7.875%, 01/15/15 200 193 Lamar Media 6.625%, 08/15/15 100 96 MCBC Holdings (A) 6.970%, 10/15/14 50 9 Stewart Enterprises 6.250%, 02/15/13 100 99 ----------- TOTAL MISCELLANEOUS BUSINESS SERVICES 909 =========== MISCELLANEOUS MANUFACTURING [2.5%] AGY Holding 11.000%, 11/15/14 100 86
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 27 schedule of investments MARCH 31, 2010 (UNAUDITED) HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- Buffalo Thunder Development Authority (A) (C) 9.375%, 12/15/14 $ 75 $ 10 CEVA Group (A) 11.625%, 10/01/16 250 267 11.500%, 04/01/18 100 104 General Cable 7.125%, 04/01/17 100 99 LBI Escrow (A) 8.000%, 11/01/17 565 586 ----------- TOTAL MISCELLANEOUS MANUFACTURING 1,152 =========== MOTION PICTURES AND SERVICES [0.9%] Lions Gate Entertainment (A) 10.250%, 11/01/16 400 409 =========== MULTI-LINE INSURANCE [0.4%] Unitrin 6.000%, 05/15/17 195 188 =========== OIL-FIELD SERVICES [0.9%] Aquilex Holdings (A) 11.125%, 12/15/16 400 430 =========== PAPER & RELATED PRODUCTS [0.7%] Appleton Papers (A) 11.250%, 12/15/15 62 57 Domtar 7.125%, 08/15/15 150 156 Verso Paper Holdings 9.125%, 08/01/14 100 97 ----------- TOTAL PAPER & RELATED PRODUCTS 310 =========== PETROLEUM & FUEL PRODUCTS [7.6%] Atlas Energy Operating 12.125%, 08/01/17 200 229 Atlas Pipeline Partners 8.125%, 12/15/15 200 193 Bill Barrett 9.875%, 07/15/16 250 269 Chesapeake Energy 6.875%, 01/15/16 100 99 6.250%, 01/15/18 100 95 Clayton Williams Energy 7.750%, 08/01/13 150 146 Continental Resources (A) 7.375%, 10/01/20 500 496 Copano Energy 7.750%, 06/01/18 100 100 Denbury Resources 8.250%, 02/15/20 350 371 Dynegy Holdings 8.375%, 05/01/16 100 83 7.750%, 06/01/19 100 75 Helix Energy Solutions Group (A) 9.500%, 01/15/16 100 103 Linn Energy 9.875%, 07/01/18 100 107 MarkWest Energy Partners, Ser B 8.500%, 07/15/16 150 152 Newfield Exploration 6.625%, 09/01/14 150 154 Petroplus Finance (A) 7.000%, 05/01/17 150 129 Plains Exploration & Production 7.750%, 06/15/15 150 152 7.625%, 06/01/18 100 101 SandRidge Energy (A) 8.750%, 01/15/20 150 146 Southern Star Central 6.750%, 03/01/16 100 101 Southwestern Energy 7.500%, 02/01/18 100 109 Stone Energy 8.625%, 02/01/17 140 138 ----------- TOTAL PETROLEUM & FUEL PRODUCTS 3,548 =========== PHARMACY SERVICES [1.1%] BioScrip (A) 10.250%, 10/01/15 500 509 =========== PHOTO EQUIPMENT AND SUPPLIES [1.2%] Eastman Kodak 9.750%, 03/01/18 (A) 100 99 7.250%, 11/15/13 500 476 ----------- TOTAL PHOTO EQUIPMENT AND SUPPLIES 575 =========== PRINTING & PUBLISHING [1.0%] MediMedia USA (A) 11.375%, 11/15/14 50 42 Nielsen Finance (D) 12.500%, 08/01/11 300 285 Sheridan Group 10.250%, 08/15/11 150 149 ----------- TOTAL PRINTING & PUBLISHING 476 ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 28 schedule of investments MARCH 31, 2010 (UNAUDITED) HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- RADIO [0.8%] Cleveland Unlimited (A) (B) 13.000%, 12/15/10 $ 250 $ 241 XM Satellite Radio Holdings (A) 13.000%, 08/01/13 100 113 ----------- TOTAL RADIO 354 =========== REAL ESTATE INVESTMENT TRUSTS [0.6%] DuPont Fabros Technology (A) 8.500%, 12/15/17 150 155 Ventas Realty 6.500%, 06/01/16 100 102 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS 257 =========== RESEARCH AND DEVELOPMENT [2.1%] Alion Science and Technology (A) 12.000%, 11/01/14 280 284 Catalent Pharma Solutions 9.500%, 04/15/15 471 462 PharmaNet Development Group (A) 10.875%, 04/15/17 245 245 ----------- TOTAL RESEARCH AND DEVELOPMENT 991 =========== RETAIL [3.4%] ACE Hardware (A) (F) 9.125%, 06/01/16 100 107 Brunswick (A) 11.250%, 11/01/16 245 279 Claire's Stores 9.625%, 06/01/15 116 99 Dave & Buster's 11.250%, 03/15/14 150 158 Ferrellgas Partners 6.750%, 05/01/14 100 99 Inergy 8.250%, 03/01/16 200 206 Landry's Restaurants (A) 11.625%, 12/01/15 126 135 Leslie's Poolmart 7.750%, 02/01/13 175 177 Penske Auto Group 7.750%, 12/15/16 100 96 Rare Restaurant Group (A) 9.250%, 05/15/14 100 70 Sbarro 10.375%, 02/01/15 50 42 Sonic Automotive 9.000%, 03/15/18 (A) 70 72 8.625%, 08/15/13 70 72 True Temper Sports (C) 8.375%, 09/15/11 150 -- ----------- TOTAL RETAIL 1,612 =========== RUBBER & PLASTIC [0.4%] Cooper Tire & Rubber 8.000%, 12/15/19 100 98 Goodyear Tire & Rubber 9.000%, 07/01/15 98 101 ----------- TOTAL RUBBER & PLASTIC 199 =========== SEMI-CONDUCTORS [0.4%] Amkor Technology 9.250%, 06/01/16 100 106 Sensata Technologies 8.000%, 05/01/14 100 103 ----------- TOTAL SEMI-CONDUCTORS 209 =========== STEEL & STEEL WORKS [0.2%] Ryerson 12.000%, 11/01/15 75 79 =========== TELEPHONES & TELECOMMUNICATIONS [6.0%] Broadview Networks Holdings 11.375%, 09/01/12 100 97 Citizens Communications 7.125%, 03/15/19 150 143 Clearwire Communications (A) 12.000%, 12/01/15 500 509 Cricket Communications 9.375%, 11/01/14 250 254 Level 3 Financing (A) 10.000%, 02/01/18 250 239 MetroPCS Wireless 9.250%, 11/01/14 350 358 Nextel Communications 6.875%, 10/31/13 200 195 Radio One 8.875%, 07/01/11 100 91 Telcordia Technologies (A) 10.000%, 03/15/13 250 244 4.001%, 07/15/12 (B) 150 145
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 29 schedule of investments MARCH 31, 2010 (UNAUDITED) HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- Virgin Media Finance 9.125%, 08/15/16 $ 150 $ 159 West 11.000%, 10/15/16 250 265 9.500%, 10/15/14 100 103 ----------- TOTAL TELEPHONES & TELECOMMUNICATIONS 2,802 =========== TRANSACTIONAL SOFTWARE [1.1%] Open Solutions (A) 9.750%, 02/01/15 600 517 =========== TRANSPORTATION SERVICES [3.2%] Kansas City Southern Railway 8.000%, 06/01/15 100 104 Navios Maritime Holdings 9.500%, 12/15/14 100 101 Pegasus Solutions (A) 10.500%, 04/15/15 100 41 Royal Caribbean Cruises 6.875%, 12/01/13 100 101 Sabre Holdings 8.350%, 03/15/16 200 190 Ship Finance International 8.500%, 12/15/13 200 198 Stena 7.000%, 12/01/16 150 144 Swift Transportation (A) (B) 8.000%, 05/15/15 200 181 Travelport 11.875%, 09/01/16 150 164 9.875%, 09/01/14 250 261 ----------- TOTAL TRANSPORTATION SERVICES 1,485 =========== WASTE DISPOSAL [0.2%] WCA Waste 9.250%, 06/15/14 100 101 =========== TOTAL CORPORATE BONDS (Cost $43,382) 43,576 ===========
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000) - ----------- ------------------------ ----------- COMMON STOCK [0.1%] BROADCASTING & CABLE [0.0%] Olympus (E) (F)* 8,500 $ 10 =========== BUILDING & CONSTRUCTION [0.0%] Dayton Superior* 149 -- =========== IT SERVICES [0.1%] Unisys* 544 19 =========== TOTAL COMMON STOCK (Cost $24) 29 =========== CONVERTIBLE BOND [0.1%] FOOD, BEVERAGE & TOBACCO [0.1%] Vector Group (B) 0.000%, 06/15/26 $ 60 64 =========== TOTAL CONVERTIBLE BOND (Cost $62) 64 =========== CASH EQUIVALENTS [11.5%] Evergreen Select Money Market Fund, Institutional Class, 0.010%** 2,705,543 2,705 Fidelity Institutional Domestic Money Market Portfolio, Cl I, 0.140%** 2,705,543 2,706 =========== TOTAL CASH EQUIVALENTS (Cost $5,411) 5,411 =========== TOTAL INVESTMENTS [104.5%] (Cost $48,879) $ 49,080 ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 30 schedule of investments MARCH 31, 2010 (UNAUDITED) HIGH YIELD BOND FUND (CONCLUDED) PERCENTAGES ARE BASED ON NET ASSETS OF $46,968 ($ THOUSANDS). * NON-INCOME PRODUCING SECURITY. ** THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010. (A) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONS. ON MARCH 31, 2010, THE VALUE OF THESE SECURITIES AMOUNTED TO $18,609(000), REPRESENTING 39.6% OF THE NET ASSETS OF THE FUND. (B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31, 2010. (C) IN DEFAULT ON INTEREST PAYMENTS. RATE SHOWN REPRESENTS THE LAST COUPON RATE PRIOR TO DEFAULT. (D) STEP BOND -- THE RATE REPORTED IS THE RATE IN EFFECT ON MARCH 31, 2010. THE COUPON ON A STEP BOND CHANGES ON A SPECIFIC DATE. (E) SECURITY IS FAIR VALUED. (F) SECURITY IS CONSIDERED ILLIQUID. CL -- CLASS MTN -- MEDIUM TERM NOTE SER -- SERIES AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total ------- ------- ------- ------- Investments in Securities Corporate Bonds $ -- $43,322 $ 254 $43,576 Common Stock 19 -- 10 29 Convertible Bond -- 64 -- 64 Cash Equivalents 5,411 -- -- 5,411 ------- ------- ------- ------- Total Investments in Securities $ 5,430 $43,386 $ 264 $49,080 ======= ======= ======= =======
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:
Investments Investments in Corporate in Common Bonds Stock ($ Thousands) ($ Thousands) ------------- ------------- Beginning balance as of October 1, 2009 $ 184 $ 9 Accrued discounts/premiums -- -- Realized gain/(loss) -- -- Change in unrealized appreciation/(depreciation) 69 1 Net purchases/sales -- -- Net transfer in and/or out of Level 3 1 -- ------------- ------------- Ending balance as of March 31, 2010 $ 254 $ 10 ============= =============
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 31 schedule of investments MARCH 31, 2010 (UNAUDITED) PRIME MONEY MARKET FUND TYPE OF SECURITY WEIGHTINGS*: [BAR GRAPH] Commercial Paper 55.6% Certificates of Deposit 24.0% Short-Term Investments 14.1% U.S. Government Agency Obligations 6.3%
* Percentages are based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- COMMERCIAL PAPER (A) [55.6%] AIRPORT DEVELOPMENT/MAINTENANCE [1.9%] Los Angeles Department of Airports 0.250%, 06/08/10 $ 25,000 $ 24,988 =========== BANKS [22.2%] Abbey National North America 0.200%, 06/08/10 25,000 24,991 Australia & New Zealand Banking Group (B) 0.230%, 06/07/10 25,000 24,989 Bank of Nova Scotia 0.160%, 04/01/10 25,000 25,000 BNZ International Funding (B) 0.195%, 05/18/10 25,000 24,994 KBC Financial Products International (B) 0.210%, 04/01/10 25,000 25,000 Landesbank Baden-Wuerttemberg 0.250%, 04/12/10 25,000 24,998 Lloyds TSB Bank 0.195%, 04/07/10 25,000 24,999 Natixis US Finance 0.255%, 06/07/10 25,000 24,988 Royal Bank of Scotland 0.220%, 04/26/10 25,000 24,996 Skandinaviska Enskilda Banken (B) 0.300%, 04/19/10 25,000 24,996 Societe Generale North America 0.240%, 04/07/10 25,000 24,999 Standard Chartered Bank (B) 0.451%, 06/11/10 25,000 24,978 ----------- TOTAL BANKS 299,928 =========== EDUCATION [1.9%] University of California 0.180%, 05/18/10 25,000 24,994 =========== FINANCIAL SERVICES [12.6%] ASB Finance (B) 0.200%, 05/19/10 25,000 24,993 Commerzbank US Finance 0.230%, 04/14/10 25,000 24,998 Danske (B) 0.180%, 04/26/10 20,000 19,997 General Electric Capital 0.220%, 04/14/10 25,000 24,998 HSBC Finance 0.200%, 05/10/10 25,000 24,995 Toyota Financial Services de Puerto Rico 0.300%, 04/23/10 25,000 24,996 Westpac Securities NZ (B) 0.250%, 05/21/10 25,000 24,991 ----------- TOTAL FINANCIAL SERVICES 169,968 =========== FOREIGN GOVERNMENTS [1.8%] Republic of Ireland International Bond 0.521%, 06/03/10 25,000 24,977 =========== IMPORT/EXPORT [1.5%] Sumitomo Corp of America 0.210%, 05/07/10 20,000 19,996 =========== INSURANCE [1.8%] MetLife Short Term Funding (B) 0.190%, 04/01/10 25,000 25,000 ----------- INVESTMENT BANKER/BROKER DEALER [5.5%] AllianceBernstein (B) 0.120%, 04/01/10 25,000 25,000 Citigroup Funding 0.220%, 04/01/10 25,000 25,000 ING US Funding 0.270%, 06/04/10 25,000 24,988 ----------- TOTAL INVESTMENT BANKER/BROKER DEALER 74,988 =========== MISCELLANEOUS MANUFACTURING [6.4%] Barton Capital (B) 0.180%, 04/07/10 12,014 12,014 Chariot Funding (B) 0.170%, 04/06/10 25,000 24,999
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 32 schedule of investments MARCH 31, 2010 (UNAUDITED) PRIME MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ----------- ----------------- ----------- Galleon Capital (B) 0.195%, 04/12/10 $ 25,000 $ 24,999 Gotham Funding (B) 0.200%, 04/15/10 25,000 24,998 ----------- TOTAL MISCELLANEOUS MANUFACTURING 87,010 =========== TOTAL COMMERCIAL PAPER (Cost $751,849) 751,849 =========== U.S. GOVERNMENT AGENCY OBLIGATIONS [6.3%] FHLB 0.550%, 06/04/10 10,000 10,000 0.420%, 10/15/10 25,000 24,996 0.480%, 10/25/10 25,000 25,018 0.400%, 12/28/10 25,000 25,000 ----------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $85,014) 85,014 =========== CERTIFICATES OF DEPOSIT [24.0%] Banco Bilbao Vizcaya Argentaria 0.255%, 06/21/10 25,000 25,001 Banco Del Estado De Chile 0.560%, 07/08/10 25,000 25,000 Bank of America 0.230%, 06/14/10 25,000 25,000 Bank of Montreal 0.170%, 04/26/10 25,000 25,000 Barclays Bank 0.760%, 08/06/10 25,000 25,000 Bayerische Landesbank 0.400%, 04/29/10 25,000 25,000 BNP Paribas NY 0.180%, 05/04/10 25,000 25,000 Dexia Credit Local NY 0.270%, 04/09/10 25,000 25,000 Erste Group Bank 0.250%, 04/05/10 25,000 25,000 Landesbank Hessen-Theuringen 0.355%, 05/17/10 25,000 25,000 National Bank of Canada 0.200%, 05/10/10 25,000 25,000 Norinchukin Bank 0.250%, 05/03/10 25,000 25,000 Rabobank Nederland 0.270%, 08/03/10 25,000 25,000 ----------- TOTAL CERTIFICATES OF DEPOSIT (Cost $325,001) 325,001 ===========
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000) - ----------- ------------------------ ----------- CASH EQUIVALENT [0.2%] Goldman Sachs Financial Square Funds - Government Fund, 0.030%* 2,570,238 $ 2,570 ----------- TOTAL CASH EQUIVALENT (Cost $2,570) 2,570 =========== REPURCHASE AGREEMENTS (C) [13.9%] Bank of America 0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $75,000,021 (collateralized by U.S. Government obligations, ranging in par value $15,679,000-$58,910,000, 0.700%-4.750%, 04/18/11- 11/17/15; with total market value $76,500,766) $ 75,000 75,000 Barclays 0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $38,700,011 (collateralized by U.S. Government obligations, ranging in par value $1,587,600-$37,413,700, 0.000%-1.750%, 02/10/11- 08/15/12; with total market value $39,474,011) 38,700 38,700 Deutsche Bank 0.020%, dated 03/31/10, repurchased on 04/01/10, repurchase price $75,000,042 (collateralized by a U.S. Government obligation, par value $76,543,000, 0.000%, 09/19/11; with total market value $76,500,136) 75,000 75,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $188,700) 188,700 =========== TOTAL INVESTMENTS [100.0%] (Cost $1,353,134) $ 1,353,134 ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 33 schedule of investments MARCH 31, 2010 (UNAUDITED) PRIME MONEY MARKET FUND (CONCLUDED) PERCENTAGES ARE BASED ON NET ASSETS OF $1,353,210 ($ THOUSANDS). * THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010. (A) THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF PURCHASE. (B) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF 1933.THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONS. ON MARCH 31, 2010, THE VALUE OF THESE SECURITIES AMOUNTED TO $331,948(000), REPRESENTING 24.5% OF THE NET ASSETS OF THE FUND. (C) TRI-PARTY REPURCHASE AGREEMENT FHLB -- FEDERAL HOME LOAN BANK The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total ------- ---------- ------- ---------- Investments in Securities Commercial Paper $ -- $ 751,849 $ -- $ 751,849 U.S. Government Agency Obligations -- 85,014 -- 85,014 Certificates of Deposit -- 325,001 -- 325,001 Cash Equivalent 2,570 -- -- 2,570 Repurchase Agreements -- 188,700 -- 188,700 ------- ---------- ------- ---------- Total Investments in Securities $ 2,570 $1,350,564 $ -- $1,353,134 ======= ========== ======= ==========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 34 schedule of investments MARCH 31, 2010 (UNAUDITED) GOVERNMENT MONEY MARKET FUND TYPE OF SECURITY WEIGHTINGS*: [BAR GRAPH] U.S. Government Agency Obligations 73.3% Repurchase Agreements 17.9% U.S. Treasury Obligations 8.8%
* Percentages are based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------------------- ----------------- ----------- U.S. GOVERNMENT AGENCY OBLIGATIONS [73.3%] FARMER MAC DN (A) 0.010%, 04/01/10 $ 22,000 $ 22,000 FFCB (B) 0.579%, 12/09/10 50,000 50,103 0.155%, 12/14/11 50,000 50,000 FHLB 0.875%, 04/15/10 25,000 25,000 0.500%, 05/26/10 25,000 24,997 0.550%, 06/04/10 20,000 20,000 0.380%, 06/15/10 40,700 40,700 0.560%, 06/22/10 25,000 24,999 4.500%, 06/22/10 25,000 25,238 0.014%, 07/06/10 (B) 50,000 50,000 0.600%, 07/26/10 10,950 10,950 0.550%, 07/30/10 20,000 20,000 0.420%, 10/15/10 25,000 24,997 0.480%, 10/25/10 25,000 25,018 0.500%, 10/28/10 19,250 19,250 0.400%, 12/28/10 25,000 25,000 FHLB DN (A) 0.040%, 04/01/10 50,000 50,000 0.040%, 04/06/10 143,000 142,999 0.110%, 04/07/10 75,000 74,999 0.087%, 04/09/10 150,000 149,997 0.132%, 04/16/10 60,220 60,217 0.120%, 04/21/10 100,000 99,993 0.121%, 04/23/10 105,000 104,992 0.137%, 04/28/10 75,000 74,992 0.135%, 04/30/10 50,000 49,995 0.150%, 05/05/10 50,000 49,993 0.150%, 05/07/10 99,086 99,071 0.150%, 05/12/10 50,000 49,991 0.170%, 06/02/10 50,000 49,985 FHLMC 4.125%, 02/24/11 24,299 25,110 FHLMC DN (A) 0.187%, 05/04/10 50,000 49,991 0.180%, 05/24/10 50,000 49,987 0.200%, 06/07/10 30,000 29,989 0.180%, 07/19/10 30,000 29,984 FNMA 7.125%, 06/15/10 24,866 25,208 FNMA DN (A) 0.122%, 05/03/10 25,000 24,997 0.140%, 05/05/10 50,000 49,993 0.135%, 05/19/10 30,000 29,995 0.156%, 05/26/10 50,000 49,988 0.187%, 06/02/10 35,000 34,989 0.184%, 06/09/10 75,000 74,974 0.200%, 07/06/10 50,000 49,973 0.230%, 08/09/10 25,000 24,979 0.381%, 09/01/10 25,000 24,960 ----------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $2,090,593) 2,090,593 =========== U.S. TREASURY OBLIGATION [8.8%] U.S. Treasury Bill 0.028%, 04/08/10 250,000 249,999 ----------- TOTAL U.S. TREASURY OBLIGATION (Cost $249,999) 249,999 =========== REPURCHASE AGREEMENTS (C) [17.9%] Bank of America 0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $200,000,056 (collateralized by U.S. Government obligations, ranging in par value $52,325,000-$69,300,000, 0.000%-5.700%, 06/25/10-11/19/24; with total market value $204,000,491) 200,000 200,000 Barclays 0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $36,300,010 (collateralized by U.S. Treasury obligations, ranging in par value $12,678,300-$19,195,700, 1.750%-6.625%, 08/15/12-02/15/27; with total market value $37,026,028) 36,300 36,300
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 35 schedule of investments MARCH 31, 2010 (UNAUDITED) GOVERNMENT MONEY MARKET FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------------------- ----------------- ----------- Deutsche Bank 0.020%, dated 03/31/10, repurchased on 04/01/10, repurchase price $75,000,042 (collateralized by a U.S. Government obligation, par value $76,543,000, 0.000%, 09/19/11; with total market value $78,500,136) $ 75,000 $ 75,000 JPMorgan Chase 0.010%, dated 03/31/10, repurchased on 04/01/10, repurchase price $200,003,223 (collateralized by U.S. Government obligations, ranging in par value $50,000-$103,700,200, 0.000%-9.375%, 04/01/10-01/15/30; with total market value $204,003,290) 200,000 200,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $511,300) 511,300 =========== TOTAL INVESTMENTS [100.0%] (Cost $2,851,892) $ 2,851,892 ===========
PERCENTAGES ARE BASED ON NET ASSETS OF $2,853,159 ($ THOUSANDS). (A) ZERO COUPON SECURITY -- THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF PURCHASE. (B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31, 2010. (C) TRI-PARTY REPURCHASE AGREEMENT DN -- DISCOUNT NOTE FARMER MAC -- FEDERAL AGRICULTURAL MORTGAGE CORPORATION FFCB -- FEDERAL FARM CREDIT BANK FHLB -- FEDERAL HOME LOAN BANK FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total ------- ----------- ------- ----------- Investments in Securities U.S. Government Agency Obligations $ -- $ 2,090,593 $ -- $ 2,090,593 U.S.Treasury Obligation -- 249,999 -- 249,999 Repurchase Agreements -- 511,300 -- 511,300 ------- ----------- ------- ----------- Total Investments in Securities $ -- $ 2,851,892 $ -- $ 2,851,892 ======= =========== ======= ===========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 36 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT MONEY MARKET FUND ISSUER INDUSTRY WEIGHTINGS*: [BAR GRAPH] General Revenue 35.9% Water 21.3% General Obligation 12.1% Education 10.4% Power 5.1% Healthcare 3.8% Public Facilities 3.2% Transportation 2.9% Utilities 2.2% Commercial Paper 1.4% Industrial Development 1.2% Airports 0.5%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------------------- ----------------- ----------- MUNICIPAL BONDS [96.8%] CALIFORNIA [91.0%] ABAG, Finance Authority for Non-Profit Corporations, Public Policy Institute, Ser A, RB (A) (B) (C) 0.290%, 11/01/31 $ 2,870 $ 2,870 Bay Area Toll Authority, RB (B) (C) 0.290%, 04/01/45 13,000 13,000 Bay Area Toll Authority, RB (B) (C) 0.240%, 04/01/38 1,000 1,000 Bay Area Toll Authority, RB (B) (C) 0.270%, 04/01/45 5,500 5,500 Bay Area Toll Authority, Ser E-1, RB (B) (C) 0.280%, 04/01/45 3,560 3,560 Bay Area Toll Authority, Ser E-3, RB (B) (C) 0.280%, 04/01/47 4,000 4,000 California State, Department of Water Resource & Power, Ser B-2, RB (A) (B) (C) 0.290%, 05/01/22 5,000 5,000 California State, Department of Water Resource & Power, Ser C-15, RB (A) (B) (C) 0.240%, 05/01/22 5,000 5,000 California State, Department of Water Resource & Power, Ser C-7, RB,AGM (B) (C) 0.320%, 05/01/22 11,925 11,925 California State, Department of Water Resource & Power, Sub-Ser F-2, RB (A) (B) (C) 0.280%, 05/01/20 16,000 16,000 California State, Department of Water Resource & Power, Sub-Ser G-3, RB,AGM (B) (C) 0.320%, 05/01/16 10,820 10,820 California State, Economic Development Financing Authority, KQED Incorporated Project, RB (A) (B) (C) 0.430%, 04/01/20 1,140 1,140 California State, Economic Recovery Authority, Ser C-16, GO,AGM (B) (C) 0.300%, 07/01/23 2,955 2,955 California State, Educational Facilities Authority, Stanford University Project, Ser L-4, RB (B) (C) 0.280%, 10/01/16 515 515 California State, Health Facilities Financing Authority, Luvile Salter Project, Ser B, RB (B) (C) 0.260%, 08/15/33 11,700 11,700 California State, Health Facilities Financing Authority, Ser B, RB (A) (B) (C) 0.260%, 10/01/31 10,000 10,000 California State, Infrastructure & Economic Authority, California Academy Project, Ser A, RB (A) (B) (C) 0.270%, 09/01/38 5,000 5,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 37 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------------------- ----------------- ----------- California State, Infrastructure & Economic Authority, J Paul Getty Trust Project, Ser A-2, RB (B) (C) 0.500%, 10/01/47 $ 4,000 $ 4,000 California State, Infrastructure & Economic Authority, J Paul Getty Trust Project, Ser B, RB (B) (C) 0.270%, 10/01/23 7,415 7,415 California State, Infrastructure & Economic Authority, J Paul Getty Trust Project, Ser D, RB (B) (C) 0.270%, 04/01/33 3,700 3,700 California State, Ser B, Sub-Ser B-7, GO (A) (B) (C) 0.340%, 05/01/40 14,275 14,275 California State, Sub-Ser B-3, GO (A) (B) (C) 0.220%, 05/01/40 3,145 3,145 California State, Sub-Ser B-4, GO (A) (B) (C) 0.280%, 05/01/40 6,880 6,880 California Statewide, Communities Development Authority, Masters College Project, RB (A) (B) (C) 0.240%, 02/01/37 3,000 3,000 California Statewide, Communities Development Authority, Ser A, RB (A) (B) (C) 0.260%, 12/01/37 20,000 20,000 Contra Costa, Transportation Authority, RB 2.500%, 10/01/10 4,200 4,242 East Bay, Municipal Utilities District Water Authority, Sub-Ser A-1, RB (B) (C) 0.280%, 06/01/38 10,000 10,000 East Bay, Municipal Utilities District Water Authority, Sub-Ser A-2, RB (B) (C) 0.280%, 06/01/38 4,890 4,890 East Bay, Municipal Utilities District Water Authority, Sub-Ser A-3, RB (B) (C) 0.280%, 06/01/38 11,300 11,300 East Bay, Municipal Utility District, Sub-Ser A, RB (B) (C) 0.230%, 06/01/33 25,000 25,000 Eastern Municipal Water District, Ser B, COP (B) (C) 0.250%, 07/01/35 10,600 10,600 Glendale, Police Building Project, COP (B) (C) 0.290%, 06/01/30 18,300 18,300 Irvine, Improvement Board, Act 1915 Project, District #03-19, Ser A, SAB (A) (B) (C) 0.270%, 09/02/29 6,536 6,536 Irvine, Improvement Board, Act 1915 Project, District #04-20, Ser A, SAB (A) (B) (C) 0.270%, 09/02/30 8,560 8,560 Irvine, Improvement Board, Act 1915 Project, District #04-20, Ser B, RB (A) (B) (C) 0.270%, 09/02/30 15,843 15,843 Irvine, Improvement Board, Act 1915 Project, District #05-21, Ser A, SAB (A) (B) (C) 0.290%, 09/02/31 14,430 14,430 Irvine, Improvement Board, Act 1915 Project, District #07-22, Ser A, RB (A) (B) (C) 0.270%, 09/02/32 13,950 13,950 Irvine, Improvement Board, Act 1915 Project, District #97-17, SAB (A) (B) (C) 0.270%, 09/02/23 7,150 7,150 Los Angeles County, Metropolitan Transportation Authority, RB (B) (C) 0.330%, 07/01/31 5,000 5,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 38 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------------------- ----------------- ----------- Los Angeles County, Metropolitan Transportation Authority, Ser A1, RB (B) (C) 0.270%, 07/01/31 $ 27,745 $ 27,745 Los Angeles County, Metropolitan Transportation Authority, Ser C4, RB, (A) (B) (C) 0.290%, 07/01/25 2,000 2,000 Los Angeles County, Ser A,TRAN 2.500%, 06/30/10 7,000 7,028 Los Angeles County, Ser A,TRAN 2.500%, 06/30/10 7,000 7,029 Los Angeles, Department of Water & Power, Sub-Ser B-1, RB (B) (C) 0.270%, 07/01/34 5,350 5,350 Los Angeles, Department of Water & Power, Sub-Ser B-2, RB (B) (C) 0.270%, 07/01/34 12,600 12,600 Los Angeles, Department of Water & Power, Sub-Ser B-2, RB (B) (C) 0.300%, 07/01/35 35,500 35,500 Los Angeles, Department of Water & Power, Sub-Ser B-3, RB (B) (C) 0.320%, 07/01/34 5,000 5,000 Los Angeles, Department of Water & Power, Sub-Ser B-4, RB (B) (C) 0.270%, 07/01/35 4,400 4,400 Los Angeles, Unified School District, Ser B, COP (A) (B) (C) 0.260%, 10/01/31 9,000 9,000 Los Angeles, Unified School District, Ser D, GO, FGIC Pre-Refunded @ 100 (D) 5.375%, 07/01/10 6,000 6,074 Los Angeles, Wastewater Systems Authority, Sub-Ser C, RB (A) (B) (C) 0.260%, 06/01/28 2,500 2,500 Los Angeles, Wastewater Systems Authority, Sub-Ser F-2, RB (A) (B) (C) 0.270%, 06/01/32 7,000 7,000 Metropolitan Water District of Southern California, RB (B) (C) 0.260%, 07/01/35 1,200 1,200 Oakland Alameda County, Coliseum Project, Ser C-1, RB (A) (B) (C) 0.270%, 02/01/25 15,000 15,000 Orange County, Sanitation District Authority, Ser A, COP (B) (C) 0.310%, 08/01/29 13,730 13,730 Orange County, Sanitation District Authority, Ser A,TRAN 2.000%, 06/30/10 7,000 7,027 Orange County, Sanitation District Authority, Ser B, COP (B) (C) 0.310%, 08/01/30 15,205 15,205 Orange County, Water District Authority, Ser A, COP (B) (C) 0.250%, 08/01/42 2,800 2,800 Pasadena, Public Financing Authority, Rose Bowl Refinancing & Improvement Project, RB (A) (B) (C) 0.260%, 12/01/23 15,625 15,625 Riverside County, Public Facilities Authority, Ser C, COP (A) (B) (C) 0.270%, 12/01/15 11,100 11,100 Riverside, Water Authority, Ser A, RB (B) (C) 0.300%, 10/01/35 8,265 8,265
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 39 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------------------- ----------------- ----------- Sacramento County, Sanitation District Authority, Sub-Ser B, RB (A) (B) (C) 0.280%, 12/01/37 $ 2,000 $ 2,000 Sacramento County, Sanitation District Authority, Sub-Ser E, RB (A) (B) (C) 0.260%, 12/01/40 6,500 6,500 San Diego County, Regional Transportation Commission, Ser B, RB (B) (C) 0.280%, 04/01/38 13,350 13,350 San Diego County, Regional Transportation Commission, Ser C, RB (B) (C) 0.290%, 04/01/38 4,900 4,900 San Diego County, School District, Ser A,TRAN 2.000%, 06/30/10 11,000 11,044 San Diego, Unified School District,TRAN 2.000%, 07/08/10 9,075 9,111 San Francisco City & County, Airports Commission, Ser 37C-RMKT, RB, AGM (B) (C) 0.320%, 05/01/29 5,000 5,000 San Jose, Redevelopment Agency, Merged Area Redevelopment Project, Ser A, RB (A) (B) (C) 0.260%, 07/01/26 7,150 7,150 Santa Barbara County, Ser A,TRAN 2.500%, 06/30/10 5,715 5,745 Santa Clara County, Financing Authority, Multiple Facilities Projects, Ser M, RB (A) (B) (C) 0.260%, 05/15/35 17,105 17,105 Santa Clara County, Financing Authority, VMC Facility Replacement Project, Ser B, RB (B) (C) 0.360%, 11/15/25 13,475 13,475 Santa Clara Valley, Transportation Authority, Ser C, RB (B) (C) 0.290%, 04/01/36 8,000 8,000 Santa Clara Valley, Transportation Authority, Ser D, RB (B) (C) 0.270%, 04/01/36 17,300 17,300 Santa Clara, Electric Authority, Sub-Ser B, RB (A) (B) (C) 0.290%, 07/01/27 4,975 4,975 Santa Cruz County,TRAN 2.000%, 07/08/10 5,000 5,020 Southern California Public Power Authority, Ser A, RB 2.000%, 08/03/10 2,000 2,011 Southern California, Metropolitan Water District Authority, Ser A-1, RB (B) (C) 0.270%, 07/01/21 500 500 Southern California, Metropolitan Water District Authority, Ser C-1, RB (B) (C) 0.280%, 07/01/36 7,500 7,500 Southern California, Metropolitan Water District Authority, Ser C-2, RB (B) (C) 0.330%, 07/01/36 20,720 20,720 Southern California, Metropolitan Water District Authority, Water Works Authorization Project, Ser B, RB (B) (C) 0.270%, 07/01/28 11,985 11,985 State of California, GO (A) (B) (C) 0.270%, 05/01/34 20,000 20,000 State of California, GO (A) (B) (C) 0.290%, 05/01/34 25,600 25,600 State of California, GO (A) (B) (C) 0.250%, 05/01/34 9,200 9,200 State of California, GO (A) (B) (C) 0.270%, 05/01/34 9,200 9,200 State of California, Ser B-4 RMKT 12/01/09, GO (A) (B) (C) 0.260%, 05/01/33 2,400 2,400
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 40 schedule of investments MARCH 31, 2010 (UNAUDITED) CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------- ----------------- ----------- State of California, Ser C-11 RMKT, GO (A) (B) (C) 0.280%, 07/01/23 $ 20,000 $ 20,000 Turlock, Irrigation District, Capital Improvement & Refunding Project,COP (A) (B) (C) 0.270%, 01/01/31 5,875 5,875 Turlock, Irrigation District, First Priority Project, Sub-Ser, RB 1.500%, 06/08/10 10,000 10,018 Tustin, Improvement Board Act, Reassessment District No. 95-2-A, Ser A, SAB (A) (B) (C) 0.280%, 09/02/13 8,685 8,685 University of California, Regents Medical Center, Ser B 1, RB (B) (C) 0.300%, 05/15/32 4,125 4,125 ----------- TOTAL CALIFORNIA 837,873 =========== CONNECTICUT [1.7%] Connecticut State, Health & Educational Facility Authority, Yale University Project, Ser U2, RB (B) (C) 0.250%, 07/01/33 10,000 10,000 Connecticut State, Health & Educational Facility Authority, Yale University Project, Ser X-2, RB (B) (C) 0.290%, 07/01/37 6,000 6,000 ----------- TOTAL CONNECTICUT 16,000 =========== MASSACHUSETTS [0.6%] Massachusetts State, Development Finance Agency, Harvard University Project, Ser HH, RB (B) (C) 0.260%, 07/15/33 5,950 5,950 =========== TEXAS [3.0%] University of Texas, Ser A, RB (B) (C) 0.250%, 08/15/13 3,795 3,795 University of Texas, Ser B, RB (B) (C) 0.270%, 08/01/33 23,500 23,500 ----------- TOTAL TEXAS 27,295 =========== VIRGINIA [0.5%] University of Virginia, Ser A, RB (B) (C) 0.250%, 06/01/34 4,965 4,965 =========== TOTAL MUNICIPAL BONDS (Cost $ 892,083) 892,083 =========== COMMERCIAL PAPER [3.0%] CALIFORNIA [3.0%] Contra Costa,Water District 0.250%, 06/03/10 12,700 12,700 San Francisco, Public Utilities 0.160%, 04/05/10 15,000 15,000 =========== TOTAL COMMERCIAL PAPER (Cost $ 27,700) 27,700 =========== TOTAL INVESTMENTS [99.8%] (Cost $919,783) $ 919,783 ===========
PERCENTAGES ARE BASED ON NET ASSETS OF $921,421 ($ THOUSANDS). (A) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR BANK OR FINANCIAL INSTITUTION. (B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31, 2010. (C) PUT AND DEMAND FEATURE -- THE DATE REPORTED IS THE NEXT RESET DATE. (D) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE. ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS AGM -- ASSURED GUARANTY MUNICIPAL CORPORATION COP -- CERTIFICATE OF PARTICIPATION FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY GO -- GENERAL OBLIGATION RB -- REVENUE BOND SAB -- SPECIAL ASSESSMENT BOND SER -- SERIES TRAN -- TAX & REVENUE ANTICIPATION NOTE The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value ($ Thousands):
Level 1 Level 2 Level 3 Total ------- --------- ------- --------- Investments in Securities Municipal Bonds $ -- $ 892,083 $ -- $ 892,083 Commercial Paper -- 27,700 -- 27,700 ------- --------- ------- --------- Total Investments in Securities $ -- $ 919,783 $ -- $ 919,783 ======= ========= ======= =========
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES IN THE NOTES TO FINANCIAL STATEMENTS. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 41 statements of assets and liabilities (000) MARCH 31, 2010 (UNAUDITED)
Large Cap Value Large Cap Growth RCB Small Cap Opportunistic Equity Fund Equity Fund Value Fund Value Fund --------------- ---------------- ------------- ------------- ASSETS: Cost of securities (including repurchase agreements) $ 99,069 $ 32,116 $ 19,707 $ 11,617 =============== ================ ============= ============= Investments in securities at value $ 102,875 $ 36,739 $ 23,900 $ 17,239 Repurchase agreements at value -- -- 1,382 -- Cash -- -- 5 -- Receivable for investment securities sold -- -- 319 2,246 Income receivable 166 23 49 15 Receivable for capital shares sold 392 185 55 -- Prepaid expenses 4 2 5 -- --------------- ---------------- ------------- ------------- Total Assets 103,437 36,949 25,715 19,500 --------------- ---------------- ------------- ------------- LIABILITIES: Payable for investment securities purchased -- -- 95 -- Payable for capital shares redeemed 9 -- 21 -- Payable for income distributions 82 21 -- -- Investment adviser fees payable 53 20 18 8 Shareholder servicing & distribution fees payable 24 10 6 -- Administrative fees payable 4 2 1 1 Payable to custodian -- -- -- 2,115 Accrued expenses 7 3 12 2 --------------- ---------------- ------------- ------------- Total Liabilities 179 56 153 2,126 --------------- ---------------- ------------- ------------- NET ASSETS $ 103,258 $ 36,893 $ 25,562 $ 17,374 =============== ================ ============= ============= NET ASSETS: Paid-in Capital (unlimited authorization -- $0.01 par value) $ 109,238 $ 36,730 $ 27,762 $ 25,647 Undistributed (distribution in excess of) net investment income -- (1) 20 (1) Accumulated net realized loss on investments (9,786) (4,459) (7,795) (13,894) Net unrealized appreciation on investments 3,806 4,623 5,575 5,622 --------------- ---------------- ------------- ------------- NET ASSETS $ 103,258 $ 36,893 $ 25,562 $ 17,374 =============== ================ ============= ============= Institutional Class Shares ($Dollars): Net Assets $ 92,647,884 $ 27,155,120 $ 2,886,908 $ 98 Total shares outstanding at end of period 11,653,430 3,483,269 136,473 13 Net asset value, offering and redemption price per share (net assets / shares outstanding) $ 7.95 $ 7.80 $ 21.15 $ 7.41 Class N Shares ($Dollars): Net Assets $ 10,610,354 $ 9,738,221 $ 4,855,906 $ 26,940 Total shares outstanding at end of period 1,336,929 1,262,453 234,148 3,655 Net asset value, offering and redemption price per share (net assets / shares outstanding) $ 7.94 $ 7.71 $ 20.74 $ 7.37 Class E Shares ($Dollars): Net Assets $ -- $ -- $ -- $ 17,347,255 Total shares outstanding at end of period -- -- -- 2,385,480 Net asset value, offering and redemption price per share (net assets / shares outstanding) $ -- $ -- $ -- $ 7.27 Class R Shares ($Dollars): Net Assets $ -- $ -- $ 17,818,748 $ -- Total shares outstanding at end of period -- -- 857,894 -- Net asset value and redemption price per share (net assets / shares outstanding) $ -- $ -- $ 20.77 $ -- Maximum offering price per share (net asset value / 96.50%) $ -- $ -- $ 21.52 $ --
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 42 statements of assets and liabilities (000) MARCH 31, 2010 (UNAUDITED)
California Multi-Asset Corporate Government Tax Exempt Fund Bond Fund Bond Fund Bond Fund ------------ ------------- ------------- ------------ ASSETS: Cost of securities (including affiliated investments and repurchase agreements) $ 27,123 $ 96,690 $ 153,646 $ 38,699 ============ ============= ============= ============ Investments in securities at value $ 24,089 $ 100,532 $ 152,244 $ 39,511 Affiliated investments at value 4,675 -- -- -- Repurchase agreements at value -- -- 2,000 -- Income receivable 49 1,167 921 506 Receivable for capital shares sold 25 488 451 -- Prepaid expenses 1 4 4 2 ------------ ------------- ------------- ------------ Total Assets 28,839 102,191 155,620 40,019 ------------ ------------- ------------- ------------ LIABILITIES: Payable for income distributions 15 212 93 56 Payable for capital shares redeemed 4 -- 33 175 Investment adviser fees payable 12 34 47 5 Shareholder servicing & distribution fees payable 10 22 33 9 Administrative fees payable 1 4 7 2 Accrued expenses 2 7 9 3 ------------ ------------- ------------- ------------ Total Liabilities 44 279 222 250 ------------ ------------- ------------- ------------ NET ASSETS $ 28,795 $ 101,912 $ 155,398 $ 39,769 ============ ============= ============= ============ NET ASSETS: Paid-in Capital (unlimited authorization -- $0.01 par value) $ 31,095 $ 99,015 $ 154,913 $ 38,975 Undistributed (distribution in excess of) net investment income 2 (1) 1 1 Accumulated net realized loss on investments (3,943) (944) (114) (19) Net unrealized appreciation on investments 1,641 3,842 598 812 ============ ============= ============= ============ Net Assets $ 28,795 $ 101,912 $ 155,398 $ 39,769 ============ ============= ============= ============ Institutional Class Shares ($Dollars): Net Assets $ 8,828,546 $ 100,398,136 $ 151,675,683 $ 37,845,222 Total shares outstanding at end of period 869,845 9,458,720 14,407,228 3,622,099 Net asset value, offering and redemption price per share (net assets / shares outstanding) $ 10.15 $ 10.61 $ 10.53 $ 10.45 Class N Shares ($Dollars): Net Assets $ 19,966,516 $ 1,514,353 $ 3,722,341 $ 1,923,522 Total shares outstanding at end of period 1,968,005 142,558 352,885 183,593 Net asset value, offering and redemption price per share (net assets / shares outstanding) $ 10.15 $ 10.62 $ 10.55 $ 10.48
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 43 statements of assets and liabilities (000) MARCH 31, 2010 (UNAUDITED)
California Prime Government Tax Exempt High Yield Money Market Money Market Money Market Bond Fund Fund Fund Fund ------------ ------------- --------------- ------------- ASSETS: Cost of securities (including repurchase agreements) $ 48,879 $ 1,353,134 $ 2,851,892 $ 919,783 ============ ============= =============== ============= Investments in securities at value $ 49,080 $ 1,164,434 $ 2,340,592 $ 919,783 Repurchase agreements at value -- 188,700 511,300 -- Cash 71 -- 74 600 Income receivable 941 361 1,580 1,213 Receivable for investment securities sold 232 -- -- -- Receivable for capital shares sold 161 -- -- -- Prepaid expenses 1 69 129 424 ------------ ------------- --------------- ------------- Total Assets 50,486 1,353,564 2,853,675 922,020 ------------ ------------- --------------- ------------- LIABILITIES: Payable for income distributions 116 44 15 6 Payable for investment securities purchased 3,359 -- -- -- Investment adviser fees payable 23 102 155 88 Shareholder servicing & distribution fees payable 15 36 39 10 Administrative fees payable 2 50 99 36 Accrued expenses 3 122 208 459 ------------ ------------- --------------- ------------- Total Liabilities 3,518 354 516 599 ------------ ------------- --------------- ------------- NET ASSETS $ 46,968 $ 1,353,210 $ 2,853,159 $ 921,421 ============ ============= =============== ============= Net Assets: Paid-in Capital (unlimited authorization -- $0.01 par value) $ 50,789 $ 1,353,175 $ 2,853,143 $ 921,418 Undistributed (distribution in excess of) net investment income (1) 84 12 2 Accumulated net realized gain (loss) on investments (4,021) (49) 4 1 Net unrealized appreciation on investments 201 -- -- -- ============ ============= =============== ============= NET ASSETS $ 46,968 $ 1,353,210 $ 2,853,159 $ 921,421 ============ ============= =============== ============= Institutional Class Shares ($Dollars): Net Assets $ 24,211,636 $ 498,511,690 $ 94,890,492 $ 140,464,038 Total shares outstanding at end of period 2,977,893 498,570,199 94,891,514 140,465,710 Net asset value, offering and redemption price per share (net assets / shares outstanding) $ 8.13 $ 1.00 $ 1.00 $ 1.00 Class N Shares ($Dollars): Net Assets $ 22,756,723 $ 500,784,226 $ 2,490,107,437 $ 723,184,375 Total shares outstanding at end of period 2,799,148 500,828,713 2,490,091,384 723,185,639 Net asset value, offering and redemption price per share (net assets / shares outstanding) $ 8.13 $ 1.00 $ 1.00 $ 1.00 Class S Shares ($Dollars): Net Assets $ -- $ 353,914,268 $ 268,161,555 $ 57,772,548 Total shares outstanding at end of period -- 353,868,691 268,160,409 57,768,814 Net asset value and redemption price per share (net assets / shares outstanding) $ -- $ 1.00 $ 1.00 $ 1.00
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 44 statements of operations FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED)
Large Cap Value Large Cap Growth RCB Small Cap Opportunistic Equity Fund Equity Fund Value Fund Value Fund (000) (000) (000) (000) --------------- ---------------- ------------- ------------- INCOME: Dividend Income $ 1,089 $ 279 $ 172 $ 131 Less: Foreign Taxes Withheld (1) -- -- -- --------------- ---------------- ------------- ------------- Total Investment Income 1,088 279 172 131 --------------- ---------------- ------------- ------------- EXPENSES: Investment Advisory Fee 293 119 98 47 Shareholder Servicing Fees--Institutional Class 106 34 3 -- Shareholder Servicing Fees--Class N(1) 24 24 11 -- Shareholder Servicing Fees--Class R(1) -- -- 41 -- Administration Fee 23 9 6 5 Transfer Agent Fees 4 2 22 1 Trustee Fees 2 1 1 1 Professional Fees 6 2 1 1 Printing Fees 2 1 1 -- Custody Fees 2 1 1 1 Registration Fees 1 1 -- 1 Insurance and Other Expenses 5 2 1 2 --------------- ---------------- ------------- ------------- Total Expenses 468 196 186 59 --------------- ---------------- ------------- ------------- Less, Waiver/Reimbursement of: Shareholder Servicing Fees--Class R(1) -- -- (32) -- Investment Advisory Fee Transfer Agent Fees (4) (2) (1) (1) --------------- ---------------- ------------- ------------- Net Expenses 464 194 153 58 --------------- ---------------- ------------- ------------- NET INVESTMENT INCOME 624 85 19 73 --------------- ---------------- ------------- ------------- Net Realized Gain/(Loss) From Securities Transactions 866 (398) 1,500 3,889 Net Change in Unrealized Appreciation (Depreciation) on Investments 7,525 3,950 1,732 (1,579) --------------- ---------------- ------------- ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 9,015 $ 3,637 $ 3,251 $ 2,383 =============== ================ ============= =============
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 45 statements of operations FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED)
California Multi-Asset Corporate Government Tax Exempt Fund Bond Fund Bond Fund Bond Fund (000) (000) (000) (000) --------------- ---------------- ------------- ------------- INCOME: Interest Income $ 7 $ 1,966 $ 2,047 $ 714 Dividend Income 332 1 -- 1 Income from Affiliated Investments 61 -- -- -- --------------- ---------------- ------------- ------------- Total Investment Income 400 1,967 2,047 715 --------------- ---------------- ------------- ------------- EXPENSES: Investment Advisory Fee 67 192 268 54 Shareholder Servicing Fees--Institutional Class 10 119 151 48 Shareholder Servicing Fees--Class N(1) 45 3 9 4 Administration Fee 7 24 31 10 Transfer Agent Fees 1 4 6 2 Trustee Fees 1 2 3 1 Professional Fees 1 6 7 2 Printing Fees 1 2 3 1 Custody Fees 1 2 2 1 Registration Fees -- 1 1 1 Insurance and Other Expenses 1 5 4 2 --------------- ---------------- ------------- ------------- Total Expenses 135 360 485 126 --------------- ---------------- ------------- ------------- Recovery of Investment Advisory Fees Previously Waived(2) -- 2 -- -- Less, Waivers of: Investment Advisory Fees -- -- (40) (22) Transfer Agent Fees (1) (4) (6) (2) --------------- ---------------- ------------- ------------- NET EXPENSES 134 358 439 102 --------------- ---------------- ------------- ------------- NET INVESTMENT INCOME 266 1,609 1,608 613 --------------- ---------------- ------------- ------------- Net Realized Gain (Loss) From Securities Transactions 280 271 (1) 168 Net Realized Gain From Affiliated Investments 12 -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments 482 189 (638) (620) Net Change in Unrealized Appreciation on Affiliated Investments 2 -- -- -- --------------- ---------------- ------------- ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,042 $ 2,069 $ 969 $ 161 =============== ================ ============= =============
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES. (2) SEE NOTE 4 FOR ADVISORY FEES ACCRUED. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 46 statements of operations FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED)
California Prime Government Tax Exempt High Yield Money Market Money Market Money Market Bond Fund Fund Fund Fund (000) (000) (000) (000) --------------- ---------------- ------------- ------------- INCOME: Interest Income $ 1,951 $ 2,101 $ 2,812 $ 1,041 Dividend Income -- 1 -- -- --------------- ---------------- ------------- ------------- Total Investment Income 1,951 2,102 2,812 1,041 --------------- ---------------- ------------- ------------- EXPENSES: Investment Advisory Fee 144 1,806 3,812 1,323 Shareholder Servicing Fees--Institutional Class 22 659 123 189 Shareholder Servicing Fees--Class N(1) 58 2,114 9,521 2,880 Shareholder Servicing Fees--Class S(1) -- 1,327 1,107 228 Administration Fee 9 359 728 243 Transfer Agent Fees 2 68 137 46 Trustee Fees 1 37 75 24 Professional Fees 2 94 195 62 Printing Fees 1 34 89 25 Custody Fees 1 35 75 23 Registration Fees -- 24 42 14 Insurance and Other Expenses 2 85 176 56 --------------- ---------------- ------------- ------------- Total Expenses 242 6,642 16,080 5,113 --------------- ---------------- ------------- ------------- Less, Waivers of: Investment Advisory Fees (17) (1,022) (2,979) (933) Administration Fees -- (54) (109) (36) Shareholder Servicing Fees--Institutional Class -- (659) (123) (189) Shareholder Servicing Fees--Class N(1) -- (1,978) (9,276) (2,806) Shareholder Servicing Fees--Class S(1) -- (1,205) (1,050) (216) Transfer Agent Fees (2) (68) (137) (46) --------------- ---------------- ------------- ------------- NET EXPENSES 223 1,656 2,406 887 --------------- ---------------- ------------- ------------- NET INVESTMENT INCOME 1,728 446 406 154 --------------- ---------------- ------------- ------------- Net Realized Gain From Securities Transactions 536 -- -- 10 Net Change in Unrealized Appreciation on Investments 2,258 -- -- -- --------------- ---------------- ------------- ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,522 $ 446 $ 406 $ 164 =============== ================ ============= =============
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 47 statements of changes in net assets FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER 30, 2009
Large Cap Value Large Cap Growth Equity Fund (000) Equity Fund (000) ------------------- ------------------- 2010 2009 2010 2009 -------- -------- -------- -------- OPERATIONS: Net Investment Income (Loss) $ 624 $ 1,621 $ 85 $ 212 Net Realized Gain (Loss) from Security Transactions and Affiliated Investments 866 (8,654) (398) (1,908) Net Change in Unrealized Appreciation (Depreciation) on Investments and Affiliated Investments 7,525 (2,607) 3,950 (113) -------- -------- -------- -------- Net Increase (Decrease) in Net Assets Resulting from Operations 9,015 (9,640) 3,637 (1,809) -------- -------- -------- -------- DIVIDENDS AND DISTRIBUTIONS FROM: Net investment income: INSTITUTIONAL CLASS (570) (1,358) (72) (182) CLASS N (53) (137) (14) (40) CLASS R -- -- -- -- CLASS E -- -- -- -- Realized Capital Gains: INSTITUTIONAL CLASS -- -- -- -- CLASS N -- -- -- -- CLASS R -- -- -- -- -------- -------- -------- -------- Total Dividends & Distributions (623) (1,495) (86) (222) -------- -------- -------- -------- CAPITAL SHARE TRANSACTIONS:(1) INSTITUTIONAL CLASS: Shares issued 10,932 20,103 2,453 6,861 Shares issued in Lieu of Dividends and Distributions 406 950 24 56 Shares Redeemed (7,542) (18,562) (6,011) (8,638) -------- -------- -------- -------- Increase (Decrease) in Net Assets from Institutional Class Share Transactions 3,796 2,491 (3,534) (1,721) -------- -------- -------- -------- CLASS N: Shares issued 1,056 538 423 554 Shares issued in Lieu of Dividends and Distributions 36 93 9 25 Shares Redeemed (290) (1,792) (726) (2,072) -------- -------- -------- -------- Increase (Decrease) in Net Assets from Class N Share Transactions 802 (1,161) (294) (1,493) -------- -------- -------- -------- CLASS R: Shares Issued -- -- -- -- Shares Issued in Lieu of Dividends and Distributions -- -- -- -- Shares Redeemed -- -- -- -- -------- -------- -------- -------- Decrease in Net Assets from Class R Share Transactions -- -- -- -- -------- -------- -------- -------- CLASS E: Shares Issued -- -- -- -- Shares Issued in Lieu of Dividends and Distributions -- -- -- -- Shares Redeemed -- -- -- -- -------- -------- -------- -------- Decrease in Net Assets from Class E Share Transactions -- -- -- -- -------- -------- -------- -------- Net Increase (Decrease) in Net Assets from Share Transactions 4,598 1,330 (3,828) (3,214) -------- -------- -------- -------- Total Increase (Decrease) in Net Assets 12,990 (9,805) (277) (5,245) -------- -------- -------- -------- NET ASSETS: Beginning of Period 90,268 100,073 37,170 42,415 -------- -------- -------- -------- End of Period $103,258 $ 90,268 $ 36,893 $ 37,170 ======== ======== ======== ======== Undistributed (Distributions in Excess of) Net Investment Income $ -- $ (1) $ (1) $ -- -------- -------- -------- --------
(1) SEE NOTE 8 FOR SHARES ISSUED AND REDEEMED. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 48
RCB Small Cap Opportunistic Value Multi-Asset Corporate Bond Value Fund (000) Fund (000) Fund (000) Fund (000) - ----------------------- ----------------------- ----------------------- ----------------------- 2010 2009 2010 2009 2010 2009 2010 2009 - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 19 $ (4) $ 73 $ 328 $ 266 $ 375 $ 1,609 $ 2,952 1,500 (8,609) 3,889 (17,058) 292 (3,856) 271 (674) 1,732 10,677 (1,579) 12,304 484 3,982 189 6,838 - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 3,251 2,064 2,383 (4,426) 1,042 501 2,069 9,116 - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- -- (29) -- (1) (96) (149) (1,590) (2,926) -- (69) -- (1) (179) (226) (20) (26) (14) (341) -- -- -- -- -- -- -- -- (73) (501) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- (14) (439) (73) (503) (275) (375) (1,610) (2,952) - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 488 750 4 127 1,132 4,298 18,571 27,853 -- 29 -- 1 78 90 429 676 (268) (537) (165) -- (1,054) (6,506) (7,954) (15,448) - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 220 242 (161) 128 156 (2,118) 11,046 13,081 - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 209 17 25 5 3,927 3,250 555 488 -- 50 -- -- 95 107 8 13 (189) (403) (12) -- (1,410) (3,554) (48) (171) - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 20 (336) 13 5 2,612 (197) 515 330 - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 442 961 -- -- -- -- -- -- 14 325 -- -- -- -- -- -- (1,669) (4,706) -- -- -- -- -- -- - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- (1,213) (3,420) -- -- -- -- -- -- - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- -- -- -- 16,515 -- -- -- -- -- -- 73 500 -- -- -- -- -- -- (11,126) (31,200) -- -- -- -- - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- -- -- (11,053) (14,185) -- -- -- -- - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- (973) (3,514) (11,201) (14,052) 2,768 (2,315) 11,561 13,411 - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 2,264 (1,889) (8,891) (18,981) 3,535 (2,189) 12,020 19,575 - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 23,298 25,187 26,265 45,246 25,260 27,449 89,892 70,317 - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 25,562 $ 23,298 $ 17,374 $ 26,265 $ 28,795 $ 25,260 $ 101,912 $ 89,892 ========== ========== ========== ========== ========== ========== ========== ========== $ 20 $ 15 $ (1) $ (1) $ 2 $ 11 $ (1) $ -- - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 49 statements of changes in net assets FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER 30, 2009
Government California Tax Exempt Bond Fund (000) Bond Fund (000) ------------------- --------------------- 2010 2009 2010 2009 -------- -------- --------- --------- OPERATIONS: Net Investment Income $ 1,608 $ 2,406 $ 613 $ 1,151 Net Realized Gain (Loss) from Security Transactions (1) 453 168 (93) Net Change in Unrealized Appreciation (Depreciation) on Investments (638) 805 (620) 1,914 -------- -------- --------- --------- Net Increase in Net Assets Resulting from Operations 969 3,664 161 2,972 -------- -------- --------- --------- DIVIDENDS AND DISTRIBUTIONS FROM: Net Investment Income: INSTITUTIONAL CLASS (1,567) (2,343) (591) (1,110) CLASS N (40) (92) (21) (41) CLASS R -- -- -- -- -------- -------- --------- --------- Realized Capital Gains Institutional Shares -- -- -- -- Class A Shares -- -- -- -- Class S Shares -- -- -- -- -------- -------- --------- --------- Total Dividends and Distributions (1,607) (2,435) (612) (1,151) -------- -------- --------- --------- CAPITAL SHARE TRANSACTIONS:(1) INSTITUTIONAL CLASS: Shares Issued 98,086 22,819 4,330 12,423 Shares Issued in Lieu of Dividends and Distributions 941 677 248 403 Shares Redeemed (18,697) (18,805) (4,889) (10,248) -------- -------- --------- --------- Increase (Decrease) in Net Assets from Institutional Class Share Transactions 80,330 4,691 (311) 2,578 -------- -------- --------- --------- CLASS N: Shares Issued 756 1,066 838 1,359 Shares Issued in Lieu of Dividends and Distributions 16 39 6 12 Shares Redeemed (141) (808) (796) (598) -------- -------- --------- --------- Increase (Decrease) in Net Assets from Class N Share Transactions 631 297 48 773 -------- -------- --------- --------- CLASS S: Shares Issued -- -- -- -- Shares Issued in Lieu of Dividends and Distributions -- -- -- -- Shares Redeemed -- -- -- -- -------- -------- --------- --------- Decrease in Net Assets from Class S Share Transactions -- -- -- -- -------- -------- --------- --------- Net Increase (Decrease) in Net Assets from Share Transactions 80,961 4,988 (263) 3,351 -------- -------- --------- --------- Total Increase (Decrease) in Net Assets 80,323 6,217 (714) 5,172 -------- -------- --------- --------- NET ASSETS: Beginning of Period 75,075 68,858 40,483 35,311 -------- -------- --------- --------- End of Period $155,398 $ 75,075 $ 39,769 $ 40,483 ======== ======== ========= ========= Undistributed (Distribution in Excess of) Net Investment Income $ 1 $ -- $ 1 $ -- -------- -------- --------- ---------
(1) SEE NOTE 8 FOR SHARES ISSUED AND REDEEMED. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 50
High Yield Prime Money Government Money California Tax Exempt Bond Fund (000) Market Fund (000) Market Fund (000) Money Market Fund (000) - ----------------------- ------------------------ ------------------------- ------------------------ 2010 2009 2010 2009 2010 2009 2010 2009 - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- $ 1,728 $ 2,698 $ 446 $ 7,504 $ 406 $ 6,637 $ 154 $ 2,951 536 (3,203) -- 117 -- 4 10 -- 2,258 4,440 -- -- -- -- -- -- - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- 4,522 3,935 446 7,621 406 6,641 164 2,951 - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- (792) (1,246) (258) (2,739) (24) (356) (37) (612) (937) (1,509) (139) (3,352) (372) (5,784) (112) (2,109) -- -- (52) (1,412) (15) (495) (3) (232) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- -- -- (58) -- -- -- (2) -- -- -- (68) -- -- -- (7) -- -- -- (40) -- -- -- (1) -- - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- (1,729) (2,755) (615) (7,503) (411) (6,635) (162) (2,953) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- 11,213 2,072 689,562 1,288,265 223,814 655,511 529,058 1,126,167 551 834 53 442 1 8 -- -- (5,170) (999) (734,370) (1,278,342) (252,788) (632,330) (530,173) (1,142,015) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- 6,594 1,907 (44,755) 10,365 (28,973) 23,189 (1,115) (15,848) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- 2,294 2,628 669,844 2,117,635 2,139,407 4,478,647 612,913 1,708,583 616 1,002 128 1,555 304 4,161 114 1,814 (1,321) (2,172) (825,887) (2,586,377) (2,198,746) (4,940,602) (594,684) (1,886,349) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- 1,589 1,458 (155,915) (467,187) (59,035) (457,794) 18,343 (175,952) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- -- -- 590,611 1,140,178 427,014 659,453 58,501 354,327 -- -- -- -- -- -- -- -- -- -- (609,419) (1,401,263) (457,694) (769,358) (75,125) (421,688) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- -- -- (18,808) (261,085) (30,680) (109,905) (16,624) (67,361) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- 8,183 3,365 (219,478) (717,907) (118,688) (544,510) 604 (259,161) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- 10,976 4,545 (219,647) (717,789) (118,693) (544,504) 606 (259,163) - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- 35,992 31,447 1,572,857 2,290,646 2,971,852 3,516,356 920,815 1,179,978 - ---------- ---------- ---------- ----------- ----------- ----------- ---------- ----------- $ 46,968 $ 35,992 $1,353,210 $ 1,572,857 $ 2,853,159 $ 2,971,852 $ 921,421 $ 920,815 ========== ========== ========== =========== =========== =========== ========== =========== $ (1) $ -- $ 84 $ 87 $ 12 $ 17 $ 2 $ -- - ---------- ---------- ---------- ----------- ----------- ----------- ---------- -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STA TEMENTS. CNI CHARTER FUNDS | PAGE 51 financial highlights FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEAR OR PERIOD ENDED SEPTEMBER 30,
NET NET REALIZED AND DISTRIBUTIONS NET NET ASSET NET UNREALIZED DIVIDENDS FROM ASSET ASSETS VALUE INVESTMENT GAINS (LOSSES) FROM NET REALIZED VALUE END BEGINNING INCOME ON INVESTMENT CAPITAL END TOTAL OF PERIOD OF PERIOD (LOSS)+ SECURITIES+ INCOME GAINS OF PERIOD RETURN++ (000) --------- ---------- -------------- ---------- ------------- --------- -------- --------- Large Cap Value Equity Fund Institutional Class (commenced operations on January 14, 2000) 2010* $ 7.28 $ 0.05 $ 0.67 $(0.05) $ -- $ 7.95 9.91% $ 92,648 2009 8.25 0.13 (0.98) (0.12) -- 7.28 (10.03) 81,308 2008 11.21 0.16 2.48 (0.15) (0.49) 8.25 (21.57) 88,361 2007 10.36 0.19 1.38 (0.19) (0.53) 11.21 15.60 110,024 2006 9.54 0.13 1.21 (0.13) (0.39) 10.36 14.50 92,946 2005 8.77 0.10 1.13 (0.10) (0.36) 9.54 14.39 42,974 Class N (commenced operations on April 13, 2000) 2010* $ 7.27 $ 0.04 $ 0.67 $(0.04) $ -- $ 7.94 9.80% $ 10,610 2009 8.24 0.12 (0.98) (0.11) -- 7.27 (10.27) 8,960 2008 11.19 0.13 (2.46) (0.13) (0.49) 8.24 (21.72) 11,712 2007 10.35 0.16 1.37 (0.16) (0.53) 11.19 15.24 17,190 2006 9.53 0.11 1.20 (0.10) (0.39) 10.35 14.24 13,104 2005 8.76 0.09 1.12 (0.08) (0.36) 9.53 14.14 10,664 Large Cap Growth Equity Fund Institutional Class (commenced operations on January 14, 2000) 2010* $ 7.08 $ 0.02 $ 0.72 $(0.02) $ -- $ 7.80 10.46% $ 27,155 2009 7.38 0.04 (0.30) (0.04) -- 7.08 (3.36) 28,050 2008 8.86 0.03 (1.48) (0.03) -- 7.38 (16.40) 31,074 2007 7.75 0.05 1.10 (0.04) -- 8.86 14.91 45,784 2006 7.43 0.02 0.32 (0.02) -- 7.75 4.59 35,842 2005 6.76 0.04 0.67 (0.04) -- 7.43 10.55 34,164 Class N (commenced operations on March 28, 2000) 2010* $ 7.00 $ 0.01 $ 0.71 $(0.01) $ -- $ 7.71 10.30% $ 9,738 2009 7.31 0.03 (0.31) (0.03) -- 7.00 (3.77) 9,120 2008 8.77 0.01 (1.46) (0.01) -- 7.31 (16.55) 11,341 2007 7.68 0.01 1.10 (0.02) -- 8.77 14.51 15,063 2006 7.35 -- 0.33 --~ -- 7.68 4.55 10,363 2005 6.69 0.02 0.67 (0.03) -- 7.35 10.28 8,278 RCB Small Cap Value Fund Institutional Class (commenced operations on October 3, 2001) 2010* $18.46 $(0.02) $ 2.71 $ -- $ -- $21.15 14.57% $ 2,887 2009 16.42 (0.02) 2.35 (0.29) -- 18.46 15.20 2,317 2008 30.79 0.19 (9.57) -- (4.99) 16.42 (35.01) 1,742 2007 28.25 0.02 3.00 (0.01) (0.47) 30.79 10.65 9,062 2006 28.58 0.06 0.05 (0.07) (0.37) 28.25 0.40 13,435 2005 27.30 0.07 2.58 -- (1.37) 28.58 9.87 13,975 Class N (commenced operations on October 3, 2001) 2010* $18.12 $ -- $ 2.62 $ -- $ -- $20.74 14.46% $ 4,856 2009 16.14 (0.05) 2.30 (0.27) -- 18.12 14.91 4,226 2008 30.42 0.15 (9.44) -- (4.99) 16.14 (35.16) 4,262 2007 27.98 (0.05) 2.96 -- (0.47) 30.42 10.37 9,753 2006 28.31 (0.01) 0.05 --~ (0.37) 27.98 0.17 10,470 2005 27.13 0.00 2.55 -- (1.37) 28.31 9.55 12,754 Class R (commenced operations on September 30, 1998) 2010* $18.15 $ 0.02 $ 2.62 $(0.02) $ -- $20.77 14.53% $ 17,819 2009 16.15 0.01 2.31 (0.32) -- 18.15 15.50 16,755 2008 30.38 0.20 (9.44) -- (4.99) 16.15 (35.02) 19,183 2007 27.93 (0.05) 2.97 -- (0.47) 30.38 10.43 40,944 2006 28.27 (0.01) 0.04 --~ (0.37) 27.93 0.14 45,836 2005 27.09 0.01 2.54 -- (1.37) 28.27 9.56 57,787 Opportunistic Value Fund Institutional Class (commenced operations on June 26, 2008) 2010* $ 6.59 $ 0.02 $ 0.81 $(0.01) $ -- $ 7.41 12.65% $ -- 2009 9.31 0.07 (1.11) (1.68) -- 6.59 (6.81) 156 2008 10.00 0.05 (0.74) -- -- 9.31 (6.90) -- Class N (commenced operations on June 26, 2008) 2010* $ 6.58 $ 0.01 $ 0.79 $(0.01) $ -- $ 7.37 12.23% $ 27 2009 9.31 0.06 (1.12) (1.67) -- 6.58 (7.12) 11 2008 10.00 0.04 (0.73) -- -- 9.31 (6.90) 7 Class E (commenced operations on June 26, 2008) 2010* $ 6.48 $ 0.03 $ 0.79 $(0.03) $ -- $ 7.27 12.65% $ 17,347 2009 9.30 0.09 (1.21) (1.70) -- 6.48 (7.57) 26,098 2008 10.00 0.04 (0.74) -- -- 9.30 (7.00) 45,239
RATIO OF EXPENSES RATIO TO AVERAGE OF NET NET ASSETS RATIO INVESTMENT (EXCLUDING OF EXPENSES INCOME (LOSS) WAIVERS & PORTFOLIO TO AVERAGE TO AVERAGE RECOVERED TURNOVER NET Assets(1)(2) NET ASSETS(1) FEES)(1) RATE ---------------- ------------- ----------- --------- Large Cap Value Equity Fund Institutional Class (commenced operations on January 14, 2000 2010* 0.96% 1.34% 0.97% 14% 2009 0.96 2.11 0.97 18 2008 0.95 1.64 0.96 36 2007 0.96 1.73 0.97 24 2006 0.96 1.36 0.97 31 2005 0.96 1.12 0.97 34 Class N (commenced operations on April 13, 2000) 2010* 1.21% 1.09% 1.22% 14% 2009 1.21 1.89 1.22 18 2008 1.20 1.38 1.21 36 2007 1.21 1.47 1.22 24 2006 1.21 1.13 1.22 31 2005 1.21 0.87 1.22 34 Large Cap Growth Equity Fund Institutional Class (commenced operations on January 14, 2000 2010* 0.99% 0.53% 1.00% 13% 2009 0.99 0.70 1.00 12 2008 0.98 0.35 0.99 26 2007 0.99 0.52 1.00 30 2006 0.99 0.27 1.00 34 2005 0.98 0.57 1.00 27 Class N (commenced operations on March 28, 2000) 2010* 1.24% 0.28% 1.25% 13% 2009 1.24 0.45 1.25 12 2008 1.23 0.11 1.24 26 2007 1.24 0.28 1.25 30 2006 1.24 0.03 1.25 34 2005 1.23 0.33 1.25 27 RCB Small Cap Value Fund Institutional Class (commenced operations on October 3, 2001) 2010* 1.19% (0.19)% 1.20% 25% 2009 1.19 (0.13) 1.20 62 2008 1.19 0.85 1.20 78 2007 1.19 0.08 1.20 57 2006 1.20 0.20 1.21 66 2005 1.18 0.26 1.20 41 Class N (commenced operations on October 3, 2001) 2010* 1.44% 0.05% 1.45% 25% 2009 1.44 (0.37) 1.45 62 2008 1.44 0.70 1.45 78 2007 1.44 (0.16) 1.45 57 2006 1.45 (0.04) 1.46 66 2005 1.43 0.01 1.45 41 Class R (commenced operations on September 30, 1998) 2010* 1.30% 0.25% 1.70% 25% 2009 0.97 0.08 1.55 62 2008 1.23 0.92 1.55 78 2007 1.44 (0.17) 1.45 57 2006 1.45 (0.04) 1.46 66 2005 1.43 0.02 1.45 41 Opportunistic Value Fund Institutional Class (commenced operations on June 26, 2008) 2010* 0.85% 0.51% 0.86% 17% 2009 0.93 1.13 0.94 144 2008 0.23(3) 1.83 0.23(3) 5 Class N (commenced operations on June 26, 2008) 2010* 1.11% 0.27% 1.12% 17% 2009 1.22 0.98 1.23 144 2008 1.20(3) 1.50 1.23(3) 5 Class E (commenced operations on June 26, 2008) 2010* 0.61% 0.79% 0.61% 17% 2009 0.68 1.53 0.69 144 2008 0.69(3) 1.44 0.70(3) 5
* FOR THE SIX MONTHS ENDED MARCH 31, 2010. + PER SHARE CALCULATIONS ARE BASED ON AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. ++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. TOTAL RETURN FIGURES DO NOT INCLUDE APPLICABLE SALES LOADS. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. ~ AMOUNT REPRESENTS LESS THAN $0.01 PER SHARE. (1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR. (2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE RATIO. (3) RATIO REFLECTS THE IMPACT OF THE INITIAL LOW LEVEL OF AVERAGE NET ASSETS ASSOCIATED WITH COMMENCEMENT OF OPERATIONS. AMOUNTS DESIGNATED AS " -- " ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 52
NET NET REALIZED AND DISTRIBUTIONS NET NET ASSET UNREALIZED DIVIDENDS FROM ASSET ASSETS VALUE NET GAINS (LOSSES) FROM NET REALIZED VALUE END BEGINNING INVESTMENT ON INVESTMENT CAPITAL END TOTAL OF PERIOD OF PERIOD INCOME+ SECURITIES+ INCOME GAINS OF PERIOD RETURN++ (000) --------- ---------- -------------- ---------- ------------- --------- -------- --------- Multi-Asset Fund Institutional Class (commenced operations on October 1, 2007) 2010* $ 9.87 $0.11 $ 0.28 $(0.11) $ -- $10.15 3.98% $ 8,829 2009 9.70 0.15 0.18 (0.16) -- 9.87 3.54 8,423 2008 11.00 0.25 (1.32) (0.23) -- 9.70 (9.84) 10,741 Class N (commenced operations on October 1, 2007) 2010* $ 9.86 $0.09 $ 0.30 $(0.10) $ -- $10.15 3.96% $ 19,966 2009 9.69 0.13 0.18 (0.14) -- 9.86 3.29 16,837 2008 11.00 0.23 (1.33) (0.21) -- 9.69 (10.12) 16,708 Corporate Bond Fund Institutional Class (commenced operations on January 14, 2000) 2010* $10.56 $0.18 $ 0.05 $(0.18) $ -- $10.61 2.16% $ 100,398 2009 9.76 0.39 0.80 (0.39) -- 10.56 12.48 88,897 2008 10.18 0.43 (0.41) (0.44) -- 9.76 0.04 69,709 2007 10.17 0.45 -- (0.44) -- 10.18 4.57 62,210 2006 10.27 0.42 (0.10) (0.42) -- 10.17 3.19 55,290 2005 10.60 0.40 (0.27) (0.40) (0.06) 10.27 1.26 51,193 Class N (commenced operations on April 13, 2000) 2010* $10.57 $0.16 $ 0.05 $(0.16) $ -- $10.62 2.03% $ 1,514 2009 9.77 0.36 0.81 (0.37) -- 10.57 12.19 995 2008 10.18 0.41 (0.41) (0.41) -- 9.77 (0.11) 608 2007 10.17 0.42 0.01 (0.42) -- 10.18 4.30 1,043 2006 10.27 0.39 (0.10) (0.39) -- 10.17 2.93 1,332 2005 10.61 0.37 (0.28) (0.37) (0.06) 10.27 0.91 1,530 Government Bond Fund Institutional Class (commenced operations on January 14, 2000) 2010* $10.58 $0.14 $(0.05) $(0.14) $ -- $10.53 0.83% $ 151,676 2009 10.40 0.35 0.18 (0.35) -- 10.58 5.18 71,966 2008 10.33 0.42 0.08 (0.43) -- 10.40 4.87 66,097 2007 10.28 0.46 0.05 (0.46) -- 10.33 5.04 52,606 2006 10.40 0.41 (0.12) (0.41) -- 10.28 2.89 35,671 2005 10.62 0.31 (0.16) (0.31) (0.06) 10.40 1.42 28,132 Class N (commenced operations on April 13, 2000) 2010* $10.60 $0.12 $(0.05) $(0.12) $ -- $10.55 0.70% $ 3,722 2009 10.42 0.32 0.18 (0.32) -- 10.60 4.91 3,109 2008 10.35 0.40 0.07 (0.40) -- 10.42 4.59 2,761 2007 10.30 0.44 0.04 (0.43) -- 10.35 4.77 2,632 2006 10.42 0.39 (0.12) (0.39) -- 10.30 2.63 1,782 2005 10.64 0.29 (0.17) (0.28) (0.06) 10.42 1.16 554 California Tax Exempt Bond Fund Institutional Class (commenced operations on January 14, 2000) 2010* $10.57 $0.16 $(0.12) $(0.16) $ -- $10.45 0.38% $ 37,845 2009 10.06 0.33 0.51 (0.33) -- 10.57 8.45 38,581 2008 10.24 0.32 (0.18) (0.32) -- 10.06 1.38 34,262 2007 10.25 0.31 (0.01) (0.31) -- 10.24 2.98 33,802 2006 10.26 0.29 0.03 (0.29) (0.04) 10.25 3.18 26,074 2005 10.41 0.28 (0.11) (0.28) (0.04) 10.26 1.65 22,768 Class N (commenced operations on April 13, 2000) 2010* $10.60 $0.15 $(0.12) $(0.15) $ -- $10.48 0.25% $ 1,924 2009 10.09 0.30 0.51 (0.30) -- 10.60 8.15 1,902 2008 10.27 0.30 (0.18) (0.30) -- 10.09 1.12 1,049 2007 10.27 0.28 -- (0.28) -- 10.27 2.82 922 2006 10.29 0.26 0.02 (0.26) (0.04) 10.27 2.81 1,134 2005 10.44 0.25 (0.11) (0.25) (0.04) 10.29 1.39 1,487 High Yield Bond Fund Institutional Class (commenced operations on January 14, 2000) 2010* $ 7.56 $0.36 $ 0.57 $(0.36) $ -- $ 8.13 12.55% $ 24,211 2009 7.40 0.62 0.18 (0.64) -- 7.56 12.94 16,355 2008 8.91 0.64 (1.47) (0.68) -- 7.40 (9.83) 13,926 2007 8.96 0.70 (0.06) (0.69) -- 8.91 7.27 17,137 2006 9.04 0.68 (0.08) (0.68) -- 8.96 6.90 20,887 2005 9.31 0.71 (0.27) (0.71) -- 9.04 4.85 22,588 Class N (commenced operations on January 14, 2000) 2010* $ 7.56 $0.35 $ 0.57 $(0.35) $ -- $ 8.13 12.39% $ 22,757 2009 7.40 0.60 0.18 (0.62) -- 7.56 12.61 19,637 2008 8.91 0.62 (1.47) (0.66) -- 7.40 (10.10) 17,521 2007 8.96 0.68 (0.07) (0.66) -- 8.91 6.95 20,121 2006 9.04 0.65 (0.08) (0.65) -- 8.96 6.58 20,045 2005 9.31 0.69 (0.27) (0.69) -- 9.04 4.54 21,028
RATIO OF EXPENSES RATIO TO AVERAGE OF NET NET ASSETS RATIO INVESTMENT (EXCLUDING OF EXPENSES INCOME WAIVERS & PORTFOLIO TO AVERAGE TO AVERAGE RECOVERED TURNOVER NET Assets(1)(2) NET ASSETS(1) FEES)(1) RATE ---------------- ------------- ----------- --------- Multi-Asset Fund Institutional Class (commenced operations on October 1, 2007) 2010* 0.84% 2.20% 0.84% 41% 2009 0.83 1.71 0.84 94 2008 1.29 2.37 1.30 141 Class N (commenced operations on October 1, 2007) 2010* 1.09% 1.91% 1.10% 41% 2009 1.09 1.46 1.10 94 2008 1.53 2.22 1.54 141 Corporate Bond Fund Institutional Class (commenced operations on January 14, 2000) 2010* 0.74% 3.36% 0.75% 14% 2009 0.74 3.88 0.75 30 2008 0.73 4.25 0.74 12 2007 0.74 4.39 0.75 30 2006 0.75 4.14 0.75 25 2005 0.75 3.80 0.76 25 Class N (commenced operations on April 13, 2000) 2010* 0.99% 3.10% 1.00% 14% 2009 0.99 3.59 1.00 30 2008 0.98 4.02 0.99 12 2007 0.99 4.13 1.00 30 2006 1.00 3.88 1.00 25 2005 1.00 3.55 1.01 25 Government Bond Fund Institutional Class (commenced operations on January 14, 2000) 2010* 0.70% 2.59% 0.77% 59% 2009 0.70 3.29 0.77 85 2008 0.70 4.05 0.77 36 2007 0.70 4.50 0.77 83 2006 0.70 4.04 0.78 62 2005 0.70 2.98 0.79 58 Class N (commenced operations on April 13, 2000) 2010* 0.95% 2.34% 1.02% 59% 2009 0.95 3.04 1.02 85 2008 0.95 3.80 1.02 36 2007 0.95 4.25 1.02 83 2006 0.95 3.81 1.03 62 2005 0.95 2.70 1.04 58 California Tax Exempt Bond Fund Institutional Class (commenced operations on January 14, 2000) 2010* 0.50% 3.05% 0.62% 12% 2009 0.50 3.18 0.61 50 2008 0.50 3.13 0.61 55 2007 0.50 3.04 0.62 43 2006 0.50 2.85 0.62 43 2005 0.50 2.70 0.63 54 Class N (commenced operations on April 13, 2000) 2010* 0.75% 2.79% 0.87% 12% 2009 0.75 2.92 0.87 50 2008 0.75 2.87 0.86 55 2007 0.75 2.78 0.87 43 2006 0.75 2.59 0.87 43 2005 0.75 2.43 0.88 54 High Yield Bond Fund Institutional Class (commenced operations on January 14, 2000) 2010* 1.00% 9.14% 1.09% 48% 2009 1.00 9.75 1.10 59 2008 1.00 7.72 1.09 20 2007 1.00 7.73 1.10 26 2006 1.00 7.58 1.10 23 2005 1.00 7.71 1.11 46 Class N (commenced operations on January 14, 2000) 2010* 1.30% 8.93% 1.40% 48% 2009 1.30 9.43 1.40 59 2008 1.30 7.43 1.39 20 2007 1.30 7.44 1.40 26 2006 1.30 7.28 1.40 23 2005 1.30 7.41 1.41 46
* FOR THE SIX MONTHS ENDED MARCH 31, 2010. + PER SHARE CALCULATIONS ARE BASED ON THE AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. ++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. (1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR. (2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE RATIO. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 53 financial highlights FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEAR OR PERIOD ENDED SEPTEMBER 30,
RATIO OF EXPENSES RATIO TO AVERAGE NET NET NET OF NET NET ASSETS ASSET DIVIDENDS ASSET ASSETS RATIO INVESTMENT (EXCLUDING VALUE NET FROM NET VALUE END OF EXPENSES INCOME WAIVERS & BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE RECOVERED OF PERIOD INCOME INCOME OF PERIOD RETURN++ (000) NET ASSETS(1)(2) NET ASSETS(1) FEES)(1) --------- ---------- ---------- --------- -------- ---------- ----------------- ------------- ----------- Prime Money Market Fund Institutional Class (commenced operations on March 23, 1998) 2010* $1.00 $0.001 $(0.001)** $1.00 0.06% $ 498,512 0.19% 0.10% 0.60% 2009 1.00 0.005 (0.005) 1.00 0.46 543,326 0.44 0.46 0.65 2008 1.00 0.030 (0.030) 1.00 3.01 532,931 0.58 2.90 0.58 2007 1.00 0.047 (0.047) 1.00 4.85 438,639 0.59 4.74 0.60 2006 1.00 0.041 (0.041) 1.00 4.17 388,171 0.59 4.12 0.60 2005 1.00 0.021 (0.021) 1.00 2.10 332,393 0.60 2.05 0.61 Class N (commenced operations on October 18, 1999) 2010* $1.00 $0.000 $(0.000)** $1.00 0.04% $ 500,784 0.24% 0.05% 1.10% 2009 1.00 0.003 (0.003) 1.00 0.33 656,769 0.61 0.39 1.15 2008 1.00 0.027 (0.027) 1.00 2.78 1,123,900 0.80 2.65 1.08 2007 1.00 0.045 (0.045) 1.00 4.62 870,537 0.81 4.52 1.10 2006 1.00 0.039 (0.039) 1.00 3.94 640,366 0.81 3.95 1.10 2005 1.00 0.019 (0.019) 1.00 1.87 312,452 0.82 1.94 1.11 Class S (commenced operations on October 26, 1999) 2010* $1.00 $0.000 $(0.000)** $1.00 0.03% $ 353,914 0.26% 0.03% 1.10% 2009 1.00 0.002 (0.002) 1.00 0.23 372,762 0.73 0.28 1.15 2008 1.00 0.025 (0.025) 1.00 2.57 633,815 1.00 2.54 1.08 2007 1.00 0.043 (0.043) 1.00 4.41 620,195 1.01 4.32 1.10 2006 1.00 0.037 (0.037) 1.00 3.73 324,353 1.01 3.74 1.10 2005 1.00 0.017 (0.017) 1.00 1.67 203,502 1.02 1.70 1.11 Government Money Market Fund Institutional Class (commenced operations on April 3, 2000) 2010* $1.00 $0.000 $(0.000) $1.00 0.02% $ 94,890 0.14% 0.05% 0.61% 2009 1.00 0.003 (0.003) 1.00 0.27 123,863 0.36 0.26 0.65 2008 1.00 0.027 (0.027) 1.00 2.72 100,674 0.59 2.62 0.59 2007 1.00 0.047 (0.047) 1.00 4.77 47,858 0.60 4.67 0.61 2006 1.00 0.040 (0.040) 1.00 4.08 52,782 0.60 4.11 0.61 2005 1.00 0.020 (0.020) 1.00 2.05 32,039 0.61 1.97 0.62 Class N (commenced operations on June 21, 1999) 2010* $1.00 $0.000 $(0.000) $1.00 0.01% $2,490,107 0.16% 0.03% 1.11% 2009 1.00 0.002 (0.002) 1.00 0.19 2,549,147 0.47 0.21 1.13 2008 1.00 0.025 (0.025) 1.00 2.49 3,006,935 0.81 2.40 1.09 2007 1.00 0.044 (0.044) 1.00 4.54 2,291,138 0.82 4.45 1.11 2006 1.00 0.038 (0.038) 1.00 3.86 1,940,602 0.82 3.78 1.11 2005 1.00 0.018 (0.018) 1.00 1.82 1,895,412 0.83 1.80 1.12 Class S (commenced operations on October 6, 1999) 2010* $1.00 $0.000 $(0.000) $1.00 0.00% $ 268,162 0.18% 0.01% 1.11% 2009 1.00 0.001 (0.001) 1.00 0.12 298,842 0.54 0.13 1.13 2008 1.00 0.023 (0.023) 1.00 2.29 408,747 1.02 2.23 1.09 2007 1.00 0.042 (0.042) 1.00 4.33 321,061 1.02 4.24 1.11 2006 1.00 0.036 (0.036) 1.00 3.65 232,083 1.02 3.60 1.11 2005 1.00 0.016 (0.016) 1.00 1.62 227,905 1.03 1.61 1.12 California Tax Exempt Money Market Fund Institutional Class (commenced operations on April 3, 2000) 2010* $1.00 $0.000 $(0.000)** $1.00 0.03% $ 140,464 0.17% 0.05% 0.62% 2009 1.00 0.003 (0.003) 1.00 0.33 141,579 0.30 0.31 0.65 2008 1.00 0.018 (0.018) 1.00 1.80 157,427 0.55 1.69 0.61 2007 1.00 0.030 (0.030) 1.00 3.01 89,237 0.55 2.97 0.62 2006 1.00 0.026 (0.026) 1.00 2.62 85,014 0.55 2.60 0.62 2005 1.00 0.015 (0.015)** 1.00 1.51 73,211 0.55 1.46 0.63 Class N (commenced operations on June 21, 1999) 2010* $1.00 $0.000 $(0.000)** $1.00 0.02% $ 723,184 0.18% 0.03% 1.12% 2009 1.00 0.002 (0.002) 1.00 0.23 704,840 0.41 0.25 1.16 2008 1.00 0.016 (0.016) 1.00 1.57 880,794 0.78 1.47 1.11 2007 1.00 0.027 (0.027) 1.00 2.78 695,318 0.78 2.73 1.12 2006 1.00 0.024 (0.024) 1.00 2.39 631,478 0.78 2.36 1.12 2005 1.00 0.013 (0.013)** 1.00 1.28 569,671 0.78 1.25 1.13 Class S (commenced operations on November 12, 1999) 2010* $1.00 $0.000 $(0.000)** $1.00 0.01% $ 57,773 0.21% 0.01% 1.12% 2009 1.00 0.002 (0.002) 1.00 0.17 74,396 0.54 0.26 1.16 2008 1.00 0.014 (0.014) 1.00 1.37 141,757 0.98 1.40 1.11 2007 1.00 0.025 (0.025) 1.00 2.57 178,918 0.98 2.55 1.12 2006 1.00 0.022 (0.022) 1.00 2.18 107,131 0.98 2.17 1.12 2005 1.00 0.011 (0.011)** 1.00 1.08 88,182 0.98 1.09 1.13
* FOR THE SIX MONTHS ENDED MARCH 31, 2010. ** INCLUDES A REALIZED CAPITAL GAIN DISTRIBUTION OF LESS THAN $0.001. ++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. (1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR. (2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE RATIO. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. CNI CHARTER FUNDS | PAGE 54 notes to financial statements MARCH 31, 2010 (UNAUDITED) 1. ORGANIZATION: CNI Charter Funds, a Delaware statutory trust (the "Trust"), is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with 16 portfolios. The financial statements included herein are those of the Large Cap Value Equity Fund, Large Cap Growth Equity Fund, RCB Small Cap Value Fund, Opportunistic Value Fund (collectively, the "Equity Funds"); Corporate Bond Fund, Government Bond Fund, California Tax Exempt Bond Fund, High Yield Bond Fund (collectively, the "Fixed Income Funds"); Prime Money Market Fund, Government Money Market Fund, California Tax Exempt Money Market Fund (collectively, the "Money Market Funds"); and Multi-Asset Fund (each a "Fund," collectively, the "Funds").The Equity and Fixed Income Funds and the Multi-Asset Fund are registered to offer Institutional and Class N Shares; in addition, the Opportunistic Value Fund is registered to offer Class E Shares and the RCB Small Cap Value Fund is registered to offer Class R Shares. The Money Market Funds are registered to offer Institutional, Class N and Class S Shares. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. The Funds' prospectuses provide descriptions of each Fund's investment objectives, policies and strategies. Effective March 15, 2010, the Opportunistic Value Fund was closed to new shareholders. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies followed by the Funds. USE OF ESTIMATES - The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. SECURITY VALUATION - Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ) are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded, or, if there is no such reported sale, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price is used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations, including money market funds, with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Investments in registered investment companies are priced at the Fund's daily net asset value. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker. Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Funds' Board of Trustees. The Funds' Fair Value Procedures are implemented through a Fair Value Committee (the "Committee") designated by the Funds' Board of Trustees. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security's trading has been halted or suspended; the security has been de-listed from a national exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; for international securities, market events occur after the close of the foreign markets that make closing prices not representative of fair value; or the security's primary pricing source is not able or willing to provide a price. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. In accordance with U.S. generally accepted accounting principles, the objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).The three levels of the fair value hierarchy under ASC 820 are described below: - Level 1 - Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date; - Level 2 - Quoted prices which are not active, or inputs that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and CNI CHARTER FUNDS | PAGE 55 notes to financial statements MARCH 31, 2010 (UNAUDITED) - Level 3 - Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity). Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement. For the six months ended March 31, 2010, there have been no significant changes to the Funds' fair valuation methodologies. SECURITY TRANSACTIONS AND RELATED INCOME - Security transactions are accounted for on the trade date of the security purchase or sale. Costs used in determining net realized capital gains and losses on the sale of securities are those of the specific securities sold. Interest income is recognized on an accrual basis and dividend income is recognized on the ex-dividend date. Purchase discounts and premiums on securities held by the Funds are accreted and amortized to maturity using the scientific method, which approximates the effective interest method over the holding period of a security, except for the Money Market funds which use a straight line basis. REPURCHASE AGREEMENTS - Securities pledged as collateral for repurchase agreements are held by each Fund's custodian bank, U.S. Bank, N.A., until maturity of the repurchase agreements. Provisions of the agreements and procedures adopted by the investment adviser require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default by the counterparty. The Funds also invest in tri-party repurchase agreements. Securities held as collateral for tri-party repurchase agreements are maintained by the broker's custodian bank in a segregated account until maturity of the repurchase agreement. Provisions of the agreements require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default. If the counterparty defaults and the value of the collateral declines or if the counterparty enters into an insolvency proceeding, realization of the collateral by the Fund may be delayed or limited. TBA TRANSACTIONS - The Funds may engage in "to be announced" ("TBA") security transactions. Such transactions involve a commitment by the Funds to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Funds record TBA securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payments for the securities purchased. EXPENSE ALLOCATION - Common expenses incurred by the Funds are allocated among the Funds (i) based upon relative average daily net assets, (ii) as incurred on a specific identification basis, or (iii) equally among the Funds, depending on the nature of the expenditure. CLASSES - Class-specific expenses are borne by that class. Income, non class-specific expenses, and realized and unrealized gains/losses are allocated to the respective class on the basis of relative net asset value each day. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment income are declared daily and paid to shareholders monthly for the Fixed Income and Money Market Funds. Dividends from net investment income are declared and paid quarterly for the Large Cap Value Equity, Large Cap Growth Equity, Opportunistic Value and Multi-Asset Funds. For the RCB Small Cap Value Fund, dividends from net investment income are declared and paid annually. Distributions from net realized capital gains are distributed to shareholders at least annually. 3. ADMINISTRATION, TRANSFER AGENT, DISTRIBUTION AND SHAREHOLDER SERVICES AGREEMENTS: Pursuant to an administration agreement dated April 1, 1999, as amended April 1, 2008 (the "Agreement"), SEI Investments Global Funds Services (the "Administrator"), a wholly owned subsidiary of SEI Investments Company, acts as the Trust's administrator. Under the terms of the Agreement, the Administrator is entitled to receive an annual fee of 0.065% of aggregate average daily net assets of the Trust not exceeding $2.5 billion, 0.045% of aggregate average daily net assets of the Trust exceeding $2.5 billion but not exceeding $5 billion, 0.025% of aggregate average daily net assets of the Trust exceeding $5 billion but not exceeding $7.5 billion, and 0.02% of aggregate average daily net assets of the Trust exceeding $7.5 billion. Each Fund is subject to a minimum annual fee of $90,000, which may be reduced at the sole discretion of the Administrator. The Trust has adopted a Rule 12b-1 Distribution Plan ("the Plan") with respect to Class N, Class S and Class R Shares that allows each Fund to pay distribution and servicing fees. SEI Investments Distribution Co. (the "Distributor") receives a distribution fee, computed daily and paid monthly, at the annual rate of 0.50% of the average daily net assets of the Class N Shares and Class S Shares of the Money Market Funds and 0.25% of the Class N Shares of the Equity Funds, Fixed Income Funds and the Multi-Asset Fund and the Class R Shares of the RCB Small Cap Value Fund, with the exception of 0.30% charged to the Class N Shares of the High Yield Bond Fund, which may be used by the Distributor to provide compensation for sales support and distribution-related activities. CNI CHARTER FUNDS | PAGE 56 Effective October 1, 2009, the RCB Small Cap Equity Fund Class R shares began waiving 0.14% in 12b-1 fees. The Trust and the Distributor are parties to a distribution agreement dated April 1, 1999. SEI Institutional Transfer Agency, a division of SEI Investments Fund Management Corporation (the "Transfer Agent"), serves as transfer agent for the Trust and provides services at an annual rate of $15,000 per share class. The Transfer Agent has agreed to waive these fees. The Class R shares of the RCB Small Cap Value Fund began paying the sub-transfer agent, Citigroup Fund Services, LLC, fees commencing February 1, 2008. The Trust has entered into Shareholder Servicing Agreements that permit payment of compensation to City National Bank ("CNB") and its affiliates which provide certain shareholder support for their customers who own Institutional Class, Class N, Class S or Class R Shares. In consideration for such services, a shareholder servicing fee is charged at the annual rate of up to 0.25% of each Fund's average daily net assets. CNB has agreed to voluntarily waive portions of its shareholder servicing fees with respect to certain Funds. For the six months ended March 31, 2010, CNB received Shareholder Servicing fees from the Trust in the amount of $5,860,699. Certain officers of the Trust are also officers of City National Asset Management, Inc. ("CNAM, Inc." or the "Adviser") or the Administrator. Such officers are paid no fees by the Trust for serving as officers of the Trust. 4. INVESTMENT ADVISORY FEES AND OTHER AGREEMENTS: CNAM, Inc., a wholly owned subsidiary of CNB, serves as the investment manager for the Funds. Under the terms of the current agreement, the Adviser receives an annual fee equal to 0.62% of the average daily net assets of the Large Cap Value Equity Fund, 0.65% of the average daily net assets of the Large Cap Growth Equity Fund, 0.85% of the average net assets of the RCB Small Cap Value Fund, 0.50% of the average daily net assets of the Opportunistic Value Fund, 0.50% of the average daily net assets of the Multi-Asset Fund, 0.40% of the average daily net assets of the Corporate Bond Fund, 0.43% of the average daily net assets of the Government Bond Fund, 0.27% of the average daily net assets of the California Tax Exempt Bond Fund, 0.75% of the average daily net assets of the High Yield Bond Fund, 0.25% of the average daily net assets of the Prime Money Market Fund, 0.26% of the average daily net assets of the Government Money Market Fund, and 0.27% of the average daily net assets of the California Tax Exempt Money Market Fund. REED, CONNER & BIRDWELL, LLC acts as the investment sub-adviser with respect to the RCB Small Cap Value Fund. GUGGENHEIM INVESTMENT MANAGEMENT, LLC acts as the investment sub-adviser with respect to the High Yield Bond Fund. SKBA CAPITAL MANAGEMENT, LLC acts as the investment sub-adviser with respect to the Opportunistic Value Fund. Sub-adviser fees are paid by the Adviser. The Adviser has voluntarily agreed to limit its fees or reimburse expenses to the extent necessary to keep operating expenses at or below certain percentages of the Funds' respective average daily net assets. In the case of the RCB Small Cap Value Fund and the Opportunistic Value Fund, the Fund's sub-adviser has contractually agreed to limit its fees or reimburse expenses to meet the expense limitations. The expense limitations (expressed as percentages of average daily net assets) are as follows:
Large Cap Large Cap RCB Value Growth Small Cap Opportunistic Equity Equity Value Value Fund Fund Fund Fund --------- --------- --------- ------------- Institutional Class 1.00% 1.05% 1.24% 1.00% Class N 1.25% 1.30% 1.49% 1.25% Class E -- -- -- 0.75% Class R -- -- 1.49% --
California Multi- Corporate Government Tax Exempt Asset Bond Bond Bond Fund Fund Fund Fund ------ --------- ---------- ---------- Institutional Class 1.75% 0.75% 0.70% 0.50% Class N 2.00% 1.00% 0.95% 0.75%
California High Yield Prime Government Tax Exempt Bond Money Market Money Market Money Market Fund Fund Fund Fund ---------- ------------ ------------ ------------ Institutional Class 1.00% 0.63% 0.63% 0.55% Class N 1.30% 0.85% 0.85% 0.78% Class S -- 1.05% 1.05% 0.98%
Any fee reductions or expense reimbursements may be repaid to the Adviser (or relevant sub-adviser, as applicable) within three years after occurrence, subject to certain restrictions and only if such repayments do not cause the Funds' expense ratios, at the time of repayment, to exceed the amounts shown in the preceding table. During the six months ended March 31, 2010, the Board of Trustees approved the reimbursement of previously waived fees by the Adviser in the amount of $1,690 in the Corporate Bond Fund. As of March 31, 2010, fees which were previously waived by the Adviser (or relevant sub-adviser, as applicable) which may be subject to possible future reimbursement to the Adviser (or relevant sub-adviser, as applicable) were as follows: CNI CHARTER FUNDS | PAGE 57 notes to financial statements MARCH 31, 2010 (UNAUDITED)
Potential Amount of Fund Recovery (000) Expiration - --------------------------------- ------------------- ---------- Government Bond $ 17 2010 39 2011 49 2012 40 2013 California Tax Exempt Bond 18 2010 34 2011 39 2012 22 2013 High Yield Bond 17 2010 29 2011 25 2012 16 2013 Prime Money Market 880 2012 1,022 2013 Government Money Market 2,210 2012 2,979 2013 California Tax Exempt Money Market 235 2010 583 2011 1,568 2012 933 2013
The Adviser, Administrator and Distributor have voluntarily agreed to further waive and reduce their fees and/or reimburse certain expenses of the Money Market Funds in order to maintain a one-day net income yield (yield floor) of each Fund of not less than 0.01% of the Fund's average daily net assets. The following table shows waivers, with respect to such yield floor, by class for the six months ended March 31, 2010:
Shareholder Investment Administration Servicing Fee Advisor Fee Fee Waiver Waiver Waiver (000) (000) (000) ------------- ----------- -------------- Prime Money Market Institutional Class $ 659 $ 374 $ 20 Class N 1,245 397 21 Class S 1,099 251 13 Government Money Market Institutional Class 123 100 4 Class N 5,976 2,578 94 Class S 962 300 11 California Tax Exempt Money Market Institutional Class 189 96 6 Class N 1,769 497 29 Class S 194 38 2
5. INVESTMENT TRANSACTIONS: The cost of security purchases and proceeds from the sale and maturities of securities, other than temporary investments in short-term securities for the six months ended March 31, 2010, were as follows for the Equity Funds, Multi-Asset Fund and Fixed Income Funds:
Purchases Sales and Maturities -------------------- -------------------- U.S. Gov`t Other U.S. Gov`t Other Fund (000) (000) (000) (000) - -------------------------- ---------- -------- ---------- -------- Large Cap Value Equity $ -- $ 16,066 $ -- $ 13,084 Large Cap Growth Equity -- 4,610 -- 8,885 RCB Small Cap Value -- 5,340 -- 5,865 Opportunistic Value -- 3,168 -- 13,678 Multi-Asset -- 12,185* -- 9,150* Corporate Bond -- 23,869 706 12,160 Government Bond 107,278 7,234 59,391 -- California Tax Exempt Bond -- 4,870 -- 4,686 High Yield Bond -- 23,292 -- 17,277
* INCLUDES $1,304(000) AND $480(000) OF PURCHASES AND SALES, RESPECTIVELY, OF AFFILIATED REGISTERED INVESTMENT COMPANIES. 6. FEDERAL TAX INFORMATION: It is each Fund's intention to continue to qualify as a regulated investment company for Federal income tax purposes and distribute all of its taxable income and net capital gains. Accordingly, no provisions for Federal income taxes are required. Management has analyzed the Funds' tax position taken on federal income tax returns for all open tax years and has concluded that as of March 31, 2010, no provision for income tax would be required in the Funds' financial statements. The Funds' federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue. The Funds may be subject to taxes imposed by countries in which they invest, with respect to their investments in issuers existing or operating in such countries. Such taxes are generally based on income earned. The Funds accrue such taxes when the related income is earned. The timing and characterization of certain income and capital gains distributions are determined annually in accordance with Federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss), or paid-in capital, as appropriate, in the period that the differences arise. Accordingly, the following permanent differences, primarily attributable to REIT adjustments, corporate action adjustments, realized gains (losses) on paydowns and timing of distributions and investments in partnerships, were reclassified to/from the following accounts as of September 30, 2009: CNI CHARTER FUNDS | PAGE 58
Increase Increase (Decrease) (Decrease) Undistributed Accumulated Net Investment Net Realized Income (Loss) Gain (Loss) Fund (000) (000) - ----------------------- -------------- ------------ RCB Small Cap Value $ 22 $ (22) Multi-Asset 10 (10) Corporate Bond (1) 1 Government Bond 30 (30) Prime Money Market 87 (87) Government Money Market 16 (16)
These reclassifications had no effect on net assets or net asset value per share. The tax character of dividends and distributions declared during the years ended September 30, 2009, and September 30, 2008, are shown below:
Tax Exempt Ordinary Long-term Income Income Capital Gain Total Fund (000) (000) (000) (000) - -------------------------- -------- -------- ------------ -------- Large Cap Value Equity 2009 $ -- $ 1,495 $ -- $ 1,495 2008 -- 1,828 5,488 7,316 Large Cap Growth Equity 2009 -- 222 -- 222 2008 -- 152 -- 152 RCB Small Cap Value 2009 -- 439 -- 439 2008 -- 3,067 6,538 9,605 Opportunistic Value 2009 -- 503 -- 503 2008 -- -- -- -- Multi-Asset 2009 -- 375 -- 375 2008 -- 473 -- 473 Corporate Bond 2009 -- 2,952 -- 2,952 2008 -- 2,888 -- 2,888 Government Bond 2009 -- 2,435 -- 2,435 2008 -- 2,639 -- 2,639 California Tax Exempt Bond 2009 1,151 -- -- 1,151 2008 1,063 -- -- 1,063 High Yield Bond 2009 -- 2,755 -- 2,755 2008 -- 2,806 -- 2,806 Prime Money Market 2009 -- 7,503 -- 7,503 2008 -- 61,899 -- 61,899 Government Money Market 2009 -- 6,635 -- 6,635 2008 -- 73,655 -- 73,655 California Tax Exempt Money Market 2009 2,953 -- -- 2,953 2008 17,064 11 -- 17,075
During the year ended September 30, 2009, the following Fund utilized capital loss carryforwards to offset capital gains amounting to:
Amount Fund (000) - -------------------------- ------ Government Bond $ 422
Post-October losses represent losses realized on investments and foreign currency transactions from November 1, 2008, through September 30, 2009, that, in accordance with Federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year. The aggregate gross unrealized appreciation on securities, the aggregate gross unrealized depreciation on securities and the net unrealized appreciation/(depreciation) for tax purposes at March 31, 2010, for each of the Equity and Fixed Income Funds and Multi-Asset Fund were as follows:
Aggregate Aggregate Net Gross Gross Unrealized Federal Unrealized Unrealized Appreciation Tax Cost Appreciation Depreciation (Depreciation) Fund (000) (000) (000) (000) - -------------------------- ---------- ------------ ------------ -------------- Large Cap Value Equity $ 99,069 $ 11,755 $ (7,949) $ 3,806 Large Cap Growth Equity 32,116 6,322 (1,699) 4,623 RCB Small Cap Value 19,707 7,417 (1,842) 5,575 Opportunistic Value 11,628 5,666 (55) 5,611 Multi Asset 27,123 2,016 (375) 1,641 Corporate Bond 96,690 3,898 (56) 3,842 Government Bond 153,646 1,019 (421) 598 California Tax Exempt Bond 38,698 890 (77) 813 High Yield Bond 48,879 1,985 (1,784) 201
At March 31, 2010, the Money Market Funds' cost of securities for Federal income tax purposes approximates the cost disclosed in the Schedule of Investments. CNI CHARTER FUNDS | PAGE 59 notes to financial statements MARCH 31, 2010 (UNAUDITED) As of September 30, 2009, the components of Distributable Earnings/(Accumulated Losses) on a tax basis were as follows:
Undistributed Undistributed Capital Unrealized Other Total Tax-Exempt Ordinary Loss Post-October Appreciation Temporary Distributable Earnings Income Income Carryforwards Losses (Depreciation) Differences (Accumulated Losses) Fund (000) (000) (000) (000) (000) (000) (000) - ----------------- ------------- ------------- ------------- ------------ -------------- ----------- ---------------------- Large Cap Value Equity $ -- $ 322 $ (2,810) $ (7,763) $ (3,800) $ (321) $ (14,372) Large Cap Growth Equity -- 37 (2,607) (1,454) 673 (37) (3,388) RCB Small Cap Value -- 14 (589) (8,608) 3,746 -- (5,437) Opportunistic Value -- 72 (2,050) (15,678) 7,145 (72) (10,583) Multi-Asset -- 74 (2,309) (1,645) 876 (63) (3,067) Corporate Bond -- 256 (541) (675) 3,654 (256) 2,438 Government Bond -- 167 (113) -- 1,236 (167) 1,123 California Tax Exempt Bond 100 -- (186) -- 1,432 (100) 1,245 High Yield Bond -- 264 (1,621) (2,936) (2,057) (264) (6,614) Prime Money Market -- 321 -- -- -- (117) 204 Government Money Market -- 92 -- -- -- (71) 21 California Tax Exempt Money Market 32 -- -- -- -- (31) 1
For tax purposes, the losses in the Funds can be carried forward for a maximum of eight years to offset any future net realized capital gains.At September 30, 2009, the breakdown of capital loss carryforwards was as follows:
Expiring September 30, --------------------------------------------------------------------------- 2010 2011 2012 2014 2015 2016 2017 Fund (000) (000) (000) (000) (000) (000) (000) - -------------------------- -------- -------- ------- -------- -------- ------- -------- Large Cap Value Equity $ -- $ -- $ -- $ -- $ -- $ -- $ 2,810 Large Cap Growth Equity 82 1,844 227 -- -- -- 454 RCB Small Cap Value -- -- -- -- -- -- 589 Opportunistic Value -- -- -- -- -- -- 2,050 Multi-Asset -- -- -- -- -- -- 2,309 Corporate Bond -- -- -- 64 271 116 90 Government Bond -- -- -- -- 12 101 -- California Tax Exempt Bond -- -- -- -- 34 7 145 High Yield Bond -- 521 -- 268 -- -- 832
7. CONCENTRATION OF CREDIT RISK In the normal course of business, the Funds enter into contracts that provide general indemnifications.The Funds' maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however, based on experience, the risk of loss from such claim is considered remote. The Multi-Asset Fund may invest in exchange-traded notes ("ETNs") as a non-principal investment strategy. ETNs are unsecured debt obligations of investment banks which are traded on exchanges and the returns of which are linked to the performance of market indexes. In addition to trading ETNs on exchanges, investors may redeem ETNs directly with the issuer on a weekly basis, typically in a minimum amount of 50,000 units, or hold the ETNs until maturity. ETNs are riskier than ordinary unsecured debt securities and have no principal protection.The Fund will generally invest in ETNs which are linked to commodities indexes.The Fund's investment in an ETN may be influenced by many unpredictable factors, including highly volatile commodities prices, changes in supply and demand relationships, weather, agriculture, trade, changes in interest rates, and monetary and other governmental policies, action and inaction. Investing in ETNs is not equivalent to investing directly in index components or the relevant index itself. Because ETNs are debt securities, they possess credit risk; if the issuer has financial difficulties or goes bankrupt, the investor may not receive the return it was promised. CALIFORNIA TAX EXEMPT FUNDS - SPECIFIC RISKS The ability of issuers to pay interest on, and repay principal of, California municipal securities may be affected by economic and political developments in the State of California. Certain securities are backed by letters of credit from various financial institutions and financial guaranty assurance agencies. These letters of credit enhance the credit quality of the individual securities; however, if any of the financial institutions or financial guaranty assurance agencies' credit quality should deteriorate, it could cause the individual security's credit quality to change. Additionally, if any of the Funds concentrate their letters of credit in any one financial institution, the risk of credit quality deterioration increases. CNI CHARTER FUNDS | PAGE 60 8. CAPITAL SHARES ISSUED AND REDEEMED: Capital share activity for the six months ended March 31, 2010 (Unaudited) and the year ended September 30, 2009, were as follows:
Large Cap Value Large Cap Growth RCB Small Cap Opportunistic Equity Fund (000) Equity Fund (000) Value Fund (000) Value Fund (000) ----------------- ------------------- ------------------ ------------------ 2010 2009 2010 2009 2010 2009 2010 2009 ------- ------- -------- -------- ------- ------- ------- -------- CAPITAL SHARES ISSUED AND REDEEMED: INSTITUTIONAL CLASS: Shares issued 1,438 3,207 324 1,140 25 54 1 24 Shares issued in Lieu of Dividends and Distributions 52 150 3 9 -- 3 -- -- Shares redeemed (1,000) (2,904) (807) (1,395) (14) (37) (24) -- ------- ------- -------- -------- ------- ------- ------- -------- Net Institutional Class transactions 490 453 (480) (246) 11 20 (23) 24 ======= ======= ======== ======== ======= ======= ======= ======== CLASS N: Shares issued 138 86 57 92 11 1 4 1 Shares issued in Lieu of Dividends and Distributions 5 15 1 4 -- 4 -- -- Shares redeemed (38) (291) (98) (346) (10) (36) (2) -- ------- ------- -------- -------- ------- ------- ------- -------- Net Class N transactions 105 (190) (40) (250) 1 (31) 2 1 ======= ======= ======== ======== ======= ======= ======= ======== CLASS R: Shares issued -- -- -- -- 23 79 -- -- Shares issued in Lieu of Dividends and Distributions -- -- -- -- 1 28 -- -- Shares redeemed -- -- -- -- (89) (372) -- -- ------- ------- -------- -------- ------- ------- ------- -------- Net Class R transactions -- -- -- -- (65) (265) -- -- ======= ======= ======== ======== ======= ======= ======= ======== CLASS E: Shares issued -- -- -- -- -- -- -- 3,743 Shares issued in Lieu of Dividends and Distributions -- -- -- -- -- -- 11 93 Shares redeemed -- -- -- -- -- -- (1,653) (4,671) ------- ------- -------- -------- ------- ------- ------- -------- Net Class E transactions -- -- -- -- -- -- (1,642) (835) ======= ======= ======== ======== ======= ======= ======= ========
California Multi-Asset Corporate Bond Government Bond Tax Exempt Bond Fund (000) Fund (000) Fund (000) Fund (000) ----------------- ------------------- ------------------ ------------------ 2010 2009 2010 2009 2010 2009 2010 2009 ------- ------- -------- -------- ------- ------- ------- -------- CAPITAL SHARES ISSUED AND REDEEMED: INSTITUTIONAL CLASS: Shares issued 113 481 1,750 2,736 9,282 2,172 414 1,204 Shares issued in Lieu of Dividends and Distributions 8 10 40 67 89 65 24 39 Shares redeemed (105) (744) (749) (1,529) (1,769) (1,789) (466) (998) ------- ------- -------- -------- ------- ------- ------- -------- Net Institutional Class transactions 16 (253) 1,041 1,274 7,602 448 (28) 245 ======= ======= ======== ======== ======= ======= ======= ======== CLASS N: Shares issued 393 359 52 48 71 101 80 132 Shares issued in Lieu of Dividends and Distributions 9 12 1 2 1 Shares redeemed (141) (387) (5) (17) (13) (77) (76) (58) ------- ------- -------- -------- ------- ------- ------- -------- Net Class N transactions 261 (16) 48 32 60 28 5 75 ======= ======= ======== ======== ======= ======= ======= ========
AMOUNTS DESIGNATED AS "--" ARE EITHER TO 0 OR HAVE BEEN ROUNDED TO 0. CNI CHARTER FUNDS | PAGE 61 notes to financial statements MARCH 31, 2010 (UNAUDITED) 8. CAPITAL SHARES ISSUED AND REDEEMED (CONTINUED):
California High-Yield Prime Government Tax Exempt Bond Money Market Money Market Money Market Fund (000) Fund (000) Fund (000) Fund (000) ----------------- ---------------------- ---------------------- ---------------------- 2010 2009 2010 2009 2010 2009 2010 2009 ------- ------- --------- ---------- ---------- ---------- -------- ----------- CAPITAL SHARES ISSUED AND REDEEMED: INSTITUTIONAL CLASS: Shares issued 1,392 307 689,562 1,288,265 223,814 655,511 529,058 1,126,167 Shares issued in Lieu of Dividends and Distributions 70 130 53 442 1 8 -- -- Shares redeemed (647) (156) (734,370) (1,278,342) (252,788) (632,330) (530,173) (1,142,015) ------- ------- --------- ---------- ---------- ---------- -------- ----------- Net Institutional Class transactions 815 281 (44,755) 10,365 (28,973) 23,189 (1,115) (15,848) ======= ======= ========= ========== ========== ========== ======== =========== CLASS N: Shares issued 293 405 669,844 2,117,635 2,139,407 4,478,647 612,913 1,708,583 Shares issued in Lieu of Dividends and Distributions 78 158 128 1,555 304 4,161 114 1,814 Shares redeemed (169) (334) (825,887) (2,586,377) (2,198,746) (4,940,602) (594,684) (1,886,349) ------- ------- --------- ---------- ---------- ---------- -------- ----------- Net Class N transactions 202 229 (155,915) (467,187) (59,035) (457,794) 18,343 (175,952) ======= ======= ========= ========== ========== ========== ======== =========== CLASS S: Shares issued -- -- 590,611 1,140,178 427,014 659,453 58,501 354,327 Shares issued in Lieu of Dividends and Distributions -- -- -- -- -- -- -- -- Shares redeemed -- -- (609,419) (1,401,263) (457,694) (769,358) (75,125) (421,688) ------- ------- --------- ---------- ---------- ---------- -------- ----------- Net Class S transactions -- -- (18,808) (261,085) (30,680) (109,905) (16,624) (67,361) ======= ======= ========= ========== ========== ========== ======== ===========
AMOUNTS DESIGNATED AS "--" ARE EITHER 0 OR HAVE BEEN ROUNDED TO 0. 9. ACCOUNTING PRONOUNCEMENT In January 2010, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2010-6, FAIR VALUE MEASUREMENTS AND DISCLOSURES (TOPIC 820): IMPROVING DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS. ASU No. 2010-6 enhances and clarifies existing fair value measurement disclosure requirements and is effective for interim and annual periods beginning after December 15, 2009. The Trust is currently evaluating the impact, if any, of applying the provisions of ASU No. 2010-6. 10. SUBSEQUENT EVENTS The Trust has evaluated the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no adjustments were required to the financial statements as of March 31, 2010. However, the following are details related to an event that occurred after March 31, 2010. At a meeting held on February 18, 2010 the Board ofTrustees voted to close the Opportunistic Value Fund. The Fund was liquidated on April 30, 2010 and the assets of the Fund were distributed to the shareholders. Effective May 24, 2010, UMB Fund Services will replace Citigroup Fund Services, LLC ("Citi") as sub-transfer agent for the Class R shares of the RCB Small CapValue Fund. The fee arrangement for UMB will be identical to Citi's fee arrangement with respect to the Fund. CNI CHARTER FUNDS | PAGE 62 disclosure of fund expenses (UNAUDITED) All mutual funds have operating expenses. As a shareholder of a Fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, class-specific distribution fees and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. Operating expenses such as these are deducted from the Fund's gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the Fund's average net assets; this percentage is known as the Fund's expense ratio. The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The table below illustrates your Fund's costs in two ways: ACTUAL FUND RETURN. This section helps you to estimate the actual expenses that your Fund incurred over the period. The "Expenses Paid During Period" column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the "Ending Account Value" number is derived from deducting that expense cost from the Fund's gross investment return. You can use this information, together with the actual amount you invested in the Fund,to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under "Expenses Paid During Period." HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with those of other mutual funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund's comparative cost by comparing the hypothetical result for your Fund in the "Expenses Paid During Period" column with those that appear in the same charts in the shareholder reports for other funds. NOTE: Because the return is set at 5% for comparison purposes - NOT your Fund's actual return - the account values shown do not apply to your specific investment.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 10/1/09 3/31/10 RATIOS PERIOD* ----------- ---------- ------------ ----------- LARGE CAP VALUE FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,099.10 0.96% $ 5.02 Class N 1,000.00 1,098.00 1.21 6.33 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,020.14 0.96% $ 4.84 Class N 1,000.00 1,018.90 1.21 6.09 LARGE CAP GROWTH FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,104.60 0.99% $ 5.19 Class N 1,000.00 1,103.00 1.24 6.50 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,020.00 0.99% $ 4.99 Class N 1,000.00 1,018.75 1.24 6.24 RCB SMALL CAP VALUE FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,145.70 1.19% $ 6.37 Class N 1,000.00 1,144.60 1.44 7.70 Class R 1,000.00 1,145.30 1.30 6.95 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,019.00 1.19% $ 5.99 Class N 1,000.00 1,017.75 1.44 7.24 Class R 1,000.00 1,018.45 1.30 6.54 OPPORTUNISTIC VALUE FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,126.50 0.85% $ 4.51 Class N 1,000.00 1,122.30 1.11 5.87 Class E 1,000.00 1,126.50 0.61 3.23 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,020.69 0.85% $ 4.28 Class N 1,000.00 1,019.40 1.11 5.59 Class E 1,000.00 1,021.89 0.61 3.07
* Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). CNI CHARTER FUNDS | PAGE 63 disclosure of fund expenses (UNAUDITED) (CONCLUDED)
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 10/1/09 3/31/10 RATIOS PERIOD* ----------- ---------- ------------ ----------- MULTI-ASSET FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,039.80 0.84% $ 4.27 Class N 1,000.00 1,039.60 1.09 5.54 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,020.74 0.84% $ 4.23 Class N 1,000.00 1,019.50 1.09 5.49 CORPORATE BOND FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,021.60 0.74% $ 3.73 Class N 1,000.00 1,020.30 0.99 4.99 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,021.24 0.74% $ 3.73 Class N 1,000.00 1,020.00 0.99 4.99 GOVERNMENT BOND FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,008.30 0.70% $ 3.50 Class N 1,000.00 1,007.00 0.95 4.75 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,021.44 0.70% $ 3.53 Class N 1,000.00 1,020.19 0.95 4.78 CALIFORNIA TAX-EXEMPT BOND FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,003.80 0.50% $ 2.50 Class N 1,000.00 1,002.50 0.75 3.74 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,022.44 0.50% $ 2.52 Class N 1,000.00 1,021.19 0.75 3.78 HIGH YIELD BOND FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,125.50 1.00% $ 5.30 Class N 1,000.00 1,123.90 1.30 6.88 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,019.95 1.00% $ 5.04 Class N 1,000.00 1,018.45 1.30 6.54 PRIME MONEY FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,000.60 0.19% $ 0.95 Class N 1,000.00 1,000.40 0.24 1.20 Class S 1,000.00 1,000.30 0.26 1.30 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,023.98 0.19% $ 0.96 Class N 1,000.00 1,023.73 0.24 1.21 Class S 1,000.00 1,023.64 0.26 1.31 GOVERNMENT MONEY MARKET FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,000.20 0.14% $ 0.70 Class N 1,000.00 1,000.10 0.16 0.80 Class S 1,000.00 1,000.00 0.18 0.90 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,024.23 0.14% $ 0.71 Class N 1,000.00 1,024.13 0.16 0.81 Class S 1,000.00 1,024.03 0.18 0.91 CALIFORNIA TAX EXEMPT MONEY MARKET FUND ACTUAL FUND RETURN Institutional Class $ 1,000.00 $ 1,000.30 0.17% $ 0.85 Class N 1,000.00 1,000.20 0.18 0.90 Class S 1,000.00 1,000.10 0.21 1.05 HYPOTHETICAL 5% RETURN Institutional Class $ 1,000.00 $ 1,024.08 0.17% $ 0.86 Class N 1,000.00 1,024.03 0.18 0.91 Class S 1,000.00 1,023.88 0.21 1.06
* Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). CNI CHARTER FUNDS | PAGE 64 THANK YOU for your investment with CNI Charter Funds. We value the trust you have placed in us to help you achieve your financial goals. For more information on CNI Charter Funds, including charges and expenses, please call 1-888-889-0799 for a free prospectus. Read it carefully before you invest or send money. CNI CHARTER FUNDS(SM) [GRAPHIC OMITTED - LATTER](R) cnicharterfunds.com CNI-SA-004-0200 ITEM 2. CODE OF ETHICS. Not applicable for semi-annual report. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable for semi-annual report. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable for semi-annual report. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to open-end management investment companies. ITEM 6. SCHEDULE OF INVESTMENTS Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to open-end management investment companies. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to open-end management investment companies. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to open-end management investment companies. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. CNI Charter Funds (the "Fund") has adopted the following procedures by which shareholders may recommend nominees to the Fund's Board of Trustees. The Fund has a Nominating Committee comprised solely of persons who are not considered "interested persons" of the Fund within the meaning of the Investment Company Act of 1940. The Committee periodically reviews such issues as the Board's composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full Board of Trustees. While the Committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the Board, so long as the shareholder or shareholder group submitting a proposed nominee: (a) beneficially owns more than 5% of the Fund's voting shares and has held such shares continuously for two years, and (b) is not an adverse holder. No eligible shareholder or shareholder group may submit more than one independent Board member nominee each year. Such suggestions must be sent in writing to the Fund 's Secretary, and must be accompanied by the shareholder's contact information, the nominee's contact information and number of Fund shares owned by the nominee, all information regarding the nominee that would be required to be disclosed in solicitations of proxies for elections of directors required under the Securities Exchange Act of 1934, and a notarized letter from the nominee stating his or her intention to serve as a nominee and be named in the Fund's proxy statement, if so designated by the Committee and the Board of Trustees. ITEM 11. CONTROLS AND PROCEDURES. (a) The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures within 90 days of the filing date of this report. In their opinion, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no significant changes in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEMS 12. EXHIBITS. (a)(1) Not applicable for semi-annual report. (a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith. (b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit. SIGNATURES Pursuant to the requirements of the securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) CNI Charter Funds By (Signature and Title)* /s/:Rich Gershen ------------------------------------- Rich Gershen, President & CEO Date: June 9, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/:Rich Gershen ------------------------------------- Rich Gershen, President & CEO Date: June 9, 2010 By (Signature and Title)* /s/:Eric Kleinschmidt ------------------------------------- Eric Kleinschmidt, Controller and COO Date: June 9, 2010 * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 g57185_cert302.txt EXHIBIT 99.CERT CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Rich Gershen, certify that: 1. I have reviewed this report on Form N-CSR of CNI Charter Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: June 9, 2010 /s/:Rich Gershen - ----------------------------- Rich Gershen President & CEO CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Eric Kleinschmidt, certify that: 1. I have reviewed this report on Form N-CSR of CNI Charter Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: June 9, 2010 /s/:Eric Kleinschmidt - ---------------------------------- Eric Kleinschmidt Controller & COO EX-99.906CERT 3 g57185_cert906.txt EXHIBIT 99.906CERT CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Chief Executive Officer of CNI Charter Funds (the "Fund") (the "Fund"), with respect to the Fund's Form N-CSR for the period ended March 31, 2010 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: June 9, 2010 /s/:Rich Gershen --------------------------------- Rich Gershen President & CEO CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Chief Operating Officer of CNI Charter Funds (the "Fund") (the "Fund"), with respect to the Fund's Form N-CSR for the period ended March 31, 2010 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: June 9, 2010 /s/:Eric Kleinschmidt --------------------------------- Eric Kleinschmidt Controller & COO -----END PRIVACY-ENHANCED MESSAGE-----