-----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, NTNM7lC3P++QaeCL8k34prhFxDZRSBjO7m7zJogYLb+wISX3X79xCZzqB6JVzgdu kZETHNJVSB5QuIfg/tICmw== 0000898531-04-000106.txt : 20040309 0000898531-04-000106.hdr.sgml : 20040309 20040309111047 ACCESSION NUMBER: 0000898531-04-000106 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031231 FILED AS OF DATE: 20040309 EFFECTIVENESS DATE: 20040309 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASSETMARK FUNDS CENTRAL INDEX KEY: 0001131042 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-10267 FILM NUMBER: 04656385 BUSINESS ADDRESS: STREET 1: 2300 CONTRA COSTA BLVD STREET 2: SUITE 425 CITY: PLEASANT HILL STATE: CA ZIP: 94523-3967 BUSINESS PHONE: 8006645345 MAIL ADDRESS: STREET 1: 2300 CONTRA COSTA BLVD STREET 2: SUITE 425 CITY: PLEASANT HILL STATE: CA ZIP: 94523-3967 N-CSR 1 amf-ncsrse.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES 811-10267 (Investment Company Act File Number) ASSETMARK FUNDS (Exact Name of Registrant as Specified in Charter) 2300 CONTRA COSTA BOULEVARD, SUITE 425, PLEASANT HILL, CA 94523-3967 (Address of Principal Executive Offices) (800) 664-5345 (Registrant's Telephone Number) CARRIE HANSEN ASSETMARK INVESTMENT SERVICES, INC. 2300 CONTRA COSTA BOULEVARD, SUITE 425 PLEASANT HILL, CA 94523-3967 (Name and Address of Agent for Service) COPIES TO: MICHAEL P. O'HARE, ESQ. ELAINE RICHARDS, ESQ. STRADLEY, RONON, STEVENS & YOUNG, LLP U.S. BANCORP FUND SERVICES, LLC 2600 ONE COMMERCE SQUARE 615 EAST MICHIGAN STREET PHILADELPHIA, PA 19103-7098 MILWAUKEE, WISCONSIN 53202 Date of fiscal year end: June 30 Date of reporting period: December 31, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. (ASSETMARK FUNDS LOGO) SEMI-ANNUAL REPORT December 31, 2003 SEMI-ANNUAL REPORT December 31, 2003 (ASSETMARK FUNDS LOGO) INVESTMENT ADVISOR AssetMark Investment Services, Inc. ASSETMARK LARGE CAP GROWTH FUND ASSETMARK LARGE CAP VALUE FUND ASSETMARK SMALL/MID CAP GROWTH FUND ASSETMARK SMALL/MID CAP VALUE FUND ASSETMARK INTERNATIONAL EQUITY FUND ASSETMARK REAL ESTATE SECURITIES FUND ASSETMARK TAX-EXEMPT FIXED INCOME FUND ASSETMARK CORE PLUS FIXED INCOME FUND (ASSETMARK FUNDS LOGO) February 2004 Dear Shareholder: In December, 2003, we were proud to achieve an important milestone in the AssetMark Funds. For the first time, our total assets in the Funds surpassed $1 billion. We would like to express our sincere appreciation to both the several thousand individual shareholders of the Funds and the investment advisors who have recommended the Funds as integral components of a diversified asset allocation portfolio. As has been widely reported in the media, several ongoing regulatory investigations indicate that certain mutual fund companies allowed, or in some cases facilitated, improper trades in mutual fund shares. This alleged trading involved both "late trading" and "market timing" of mutual fund shares. We would like to assure you that we have had policies, procedures and agreements in place to monitor for abusive trading practices in an effort to protect against this type of improper trading activity as follows: LATE TRADING Shares of the AssetMark Funds can only be purchased through specific financial intermediaries with whom the Funds have executed a Shareholder Servicing Agreement. In accordance with applicable securities laws and regulations, each of these Shareholder Servicing Agreements impose a strict 4:00 EST market closing "cut off" for the receipt of trades by the intermediary which are to be processed at the current day's net asset value (NAV). AssetMark is not aware of any trades which have been submitted by any financial intermediary in violation of this provision, but has nonetheless formally requested of each intermediary, and received a written certification confirming that no such late trades have been submitted. MARKET TIMING AssetMark strongly discourages market timing in the AssetMark Funds, and since early 2002 has implemented formal monitoring and corrective procedures to identify fund investors who may be engaged in market timing activities, and to enforce the cessation of those activities. Under no circumstances has AssetMark entered into any agreements with any investor or investment advisor to encourage or facilitate market timing in the Funds. At AssetMark, we take our responsibilities to the shareholders and investment advisors utilizing the AssetMark Funds very seriously. We want you to know that, together with our independent trustees and our fund counsel, we will continue to vigorously monitor and enforce the strict compliance policies and high ethical standards we have established with respect to the management and administration of the Funds. In addition, in consultation with Wilshire Associates, we will continue to research and monitor a broad universe of investment managers to provide shareholders with the finest institutional investment capabilities available in the management of the Fund portfolios. We were pleased with the performance of the Funds in 2003, as the Net Asset Values of all of our equity funds rebounded strongly following the challenging markets of 2002. We look forward into 2004 with confidence that the Funds will continue to be well positioned to meet the challenges and opportunities that lie ahead. Sincerely, /s/ Ronald D. Cordes, Ronald D. Cordes, President AssetMark Funds AssetMark Large Cap Growth Fund SCHEDULE OF INVESTMENTS December 31, 2003 (Unaudited) NUMBER OF MARKET SHARES VALUE - --------- ------ COMMON STOCK 96.38% FINANCE, INSURANCE AND REAL ESTATE 15.79% DEPOSITORY INSTITUTIONS 0.99% 29,400 Bank of America Corporation $ 2,364,642 ------------ INSURANCE CARRIERS 9.00% 143,600 AFLAC Inc. 5,195,448 93,400 American International Group, Inc. 6,190,552 121,350 The Progressive Corporation 10,143,647 ------------ 21,529,647 ------------ NON-DEPOSITORY CREDIT INSTITUTIONS 0.99% 49,000 American Express Company 2,363,270 ------------ SECURITY AND COMMODITY BROKERS, DEALERS, EXCHANGES AND SERVICES 4.81% 35,300 A.G. Edwards, Inc. 1,278,919 360,215 The Charles Schwab Corporation 4,264,946 44,500 Franklin Resources, Inc. 2,316,670 37,600 Merrill Lynch & Co., Inc. 2,205,240 48,000 SEI Investments Company 1,462,560 ------------ 11,528,335 ------------ Total Finance, Insurance and Real Estate 37,785,894 ------------ MANUFACTURING 50.83% CHEMICALS AND ALLIED PRODUCTS 15.41% 47,400 Air Products and Chemicals, Inc. 2,504,142 133,250 Amgen Inc. # 8,234,850 45,100 Ecolab Inc. 1,234,387 78,650 Eli Lilly and Company 5,531,455 45,200 The Estee Lauder Companies Inc. 1,774,552 69,710 Genentech, Inc. # 6,522,764 102,820 MedImmune, Inc. # 2,611,628 26,900 Merck & Co., Inc. 1,242,780 111,200 Pfizer Inc. 3,928,696 33,000 Rohm and Haas Company 1,409,430 108,700 Schering-Plough Corporation 1,890,293 ------------ 36,884,977 ------------ ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT AND COMPONENTS, EXCEPT COMPUTER EQUIPMENT 16.10% 58,300 American Power Conversion Corporation 1,425,435 49,500 Emerson Electric Co. 3,205,125 74,050 General Electric Company 2,294,069 206,500 Intel Corporation 6,649,300 27,500 Linear Technology Corporation 1,156,925 123,100 Maxim Integrated Products, Inc. 6,130,380 75,400 Microchip Technology Incorporated 2,515,344 48,100 Molex Incorporated 1,678,209 319,500 Network Appliance, Inc. # 6,559,335 21,900 QLogic Corporation # 1,130,040 26,850 QUALCOMM Inc. 1,448,021 111,700 Xilinx, Inc. # 4,327,258 ------------ 38,519,441 ------------ FABRICATED METAL PRODUCTS, EXCEPT MACHINERY AND TRANSPORTATION EQUIPMENT 1.08% 30,800 Illinois Tool Works Inc. 2,584,428 ------------ FOOD AND KINDRED PRODUCTS 0.87% 41,000 The Coca-Cola Company 2,080,750 ------------ INDUSTRIAL AND COMMERCIAL MACHINERY AND COMPUTER EQUIPMENT 11.78% 210,200 Applied Materials, Inc. # 4,718,990 27,300 CDW Corporation 1,576,848 324,900 Cisco Systems, Inc. # 7,891,821 212,050 Dell Inc. 7,201,218 65,100 Dover Corporation 2,587,725 66,500 Hewlett-Packard Company 1,527,505 31,400 3M Co. 2,669,942 ------------ 28,174,049 ------------ MEASURING, ANALYZING AND CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL AND OPTICAL GOODS; WATCHES AND CLOCKS 2.50% 16,400 C.R. Bard, Inc. 1,332,500 39,400 Dentsply International Inc. 1,779,698 59,200 Medtronic, Inc. 2,877,712 ------------ 5,989,910 ------------ MISCELLANEOUS MANUFACTURING INDUSTRIES 0.37% 19,800 Tiffany & Co. 894,960 ------------ PETROLEUM REFINING AND RELATED INDUSTRIES 0.78% 45,400 Exxon Mobil Corporation 1,861,400 ------------ PRINTING, PUBLISHING AND ALLIED INDUSTRIES 0.96% 51,900 Viacom Inc. 2,303,322 ------------ TRANSPORTATION EQUIPMENT 0.98% 49,200 Harley-Davidson, Inc. 2,338,476 ------------ Total Manufacturing 121,631,713 ------------ MINING 1.22% OIL AND GAS EXTRACTION 1.22% 35,985 Apache Corporation 2,918,383 ------------ Total Mining 2,918,383 ------------ RETAIL TRADE 15.14% APPAREL AND ACCESSORY STORES 0.75% 40,100 Kohl's Corporation # 1,802,094 ------------ BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY AND MOBILE HOME DEALERS 0.93% 40,200 Lowe's Companies, Inc. 2,226,678 ------------ EATING AND DRINKING PLACES 0.92% 66,600 Brinker International, Inc. # 2,208,456 ------------ FOOD STORES 1.17% 84,650 Starbucks Corporation 2,798,529 ------------ GENERAL MERCHANDISE STORES 1.72% 47,500 Costco Wholesale Corporation 1,766,050 44,000 Wal-Mart Stores, Inc. 2,334,200 ------------ 4,100,250 ------------ HOME FURNITURE, FURNISHINGS AND EQUIPMENT STORES 0.75% 41,500 Bed Bath & Beyond Inc. # 1,799,025 ------------ MISCELLANEOUS RETAIL 8.90% 173,700 Amazon.com, Inc. # 9,143,568 83,000 eBay Inc. # 5,360,970 66,500 Staples, Inc. # 1,815,450 136,600 Walgreen Co. 4,969,508 ------------ 21,289,496 ------------ Total Retail Trade 36,224,528 ------------ SERVICES 9.78% BUSINESS SERVICES 8.86% 90,800 Concord EFS, Inc. # 1,347,472 30,500 Fiserv, Inc. # 1,205,055 206,000 Microsoft Corporation 5,673,240 21,300 Omnicom Group Inc. 1,860,129 50,750 Pixar, Inc. # 3,516,467 67,600 SunGard Data Systems Inc. # 1,873,196 127,100 Yahoo! Inc. # 5,741,107 ------------ 21,216,666 ------------ HEALTH SERVICES 0.92% 91,500 Health Management Associates, Inc. 2,196,000 ------------ Total Services 23,412,666 ------------ TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS AND SANITARY SERVICES 1.98% COMMUNICATIONS 0.73% 37,600 ALLTEL Corporation 1,751,408 ------------ TRANSPORTATION BY AIR 1.25% 184,800 Southwest Airlines Co. 2,982,672 ------------ Total Transportation, Communications, Electric, Gas and Sanitary Services 4,734,080 ------------ WHOLESALE TRADE 1.64% WHOLESALE TRADE - DURABLE GOODS 0.65% 30,300 Johnson & Johnson 1,565,298 ------------ WHOLESALE TRADE - NON-DURABLE GOODS 0.99% 63,400 Sysco Corporation 2,360,382 ------------ Total Wholesale Trade 3,925,680 ------------ TOTAL COMMON STOCK (COST $197,326,479) 230,632,944 ------------ SHORT TERM INVESTMENTS 3.00% MONEY MARKET FUND 3.00% 7,189,142 Federated Prime Obligations Fund 7,189,142 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $7,189,142) 7,189,142 ------------ TOTAL INVESTMENTS 99.38% (COST $204,515,621) 237,822,086 ------------ OTHER ASSETS, LESS LIABILITIES 0.62% 1,481,177 ------------ NET ASSETS 100% $239,303,263 ------------ ------------ # Non-income producing security. See notes to financial statements. AssetMark Large Cap Value Fund SCHEDULE OF INVESTMENTS December 31, 2003 (Unaudited) NUMBER OF MARKET SHARES VALUE - --------- ------ COMMON STOCK 94.63% FINANCE, INSURANCE AND REAL ESTATE 30.08% DEPOSITORY INSTITUTIONS 12.57% 103,900 Bank One Corporation $ 4,736,801 112,800 Citigroup Inc. 5,475,312 22,000 Fifth Third Bancorp 1,300,200 23,400 FleetBoston Financial Corporation 1,021,410 38,500 Golden West Financial Corporation 3,972,815 68,272 HSBC Holdings PLC 5,381,199 41,350 JP Morgan Chase & Co. 1,518,786 38,700 Lloyds TSB Group PLC 1,259,685 88,200 Wells Fargo & Company 5,194,098 ------------ 29,860,306 ------------ HOLDING AND OTHER INVESTMENT OFFICES 2.44% 2,061 Berkshire Hathaway Inc. # 5,801,715 ------------ INSURANCE AGENTS, BROKERS AND SERVICE 0.51% 50,100 Aon Corporation 1,199,394 ------------ INSURANCE CARRIERS 10.01% 106,700 American International Group, Inc. 7,072,076 2,900 American National Insurance Company 244,673 22,580 CIGNA Corporation 1,298,350 98,280 Loews Corporation 4,859,946 86,210 The Phoenix Companies, Inc. 1,037,968 57,400 The Progressive Corporation 4,798,066 27,900 Transatlantic Holdings, Inc. 2,254,320 140,060 UnumProvident Corporation 2,208,746 ------------ 23,774,145 ------------ NON-DEPOSITORY CREDIT INSTITUTIONS 3.93% 146,700 American Express Company 7,075,341 62,480 CIT Group Inc. 2,246,156 ------------ 9,321,497 ------------ SECURITY AND COMMODITY BROKERS, DEALERS, EXCHANGES AND SERVICES 0.62% 25,600 Morgan Stanley 1,481,472 ------------ Total Finance, Insurance, and Real Estate 71,438,529 ------------ MANUFACTURING 32.98% CHEMICALS AND ALLIED PRODUCTS 6.70% 122,740 Bristol-Myers Squibb Company 3,510,364 30,100 Eli Lilly and Company 2,116,933 43,540 Great Lakes Chemical Corporation 1,183,853 85,430 Merck & Co. Inc. 3,946,866 34,900 Pfizer Inc. 1,233,017 225,060 Schering-Plough Corporation 3,913,793 ------------ 15,904,826 ------------ ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT AND COMPONENTS, EXCEPT COMPUTER EQUIPMENT 2.68% 573,830 Lucent Technologies Inc. # 1,629,677 177,620 Micron Technology, Inc. # 2,392,541 166,810 Motorola, Inc. 2,347,017 ------------ 6,369,235 ------------ FOOD AND KINDRED PRODUCTS 2.36% 90,430 Archer-Daniels-Midland Company 1,376,345 41,400 Diageo PLC 2,188,404 16,000 Hershey Foods Corporation 1,231,840 24,900 Kraft Foods Inc. 802,278 ------------ 5,598,867 ------------ INDUSTRIAL AND COMMERCIAL MACHINERY AND COMPUTER EQUIPMENT 1.46% 65,920 Hewlett-Packard Company 1,514,182 24,700 Lexmark International, Inc. # 1,942,408 ------------ 3,456,590 ------------ MEASURING, ANALYZING AND CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL AND OPTICAL GOODS; WATCHES AND CLOCKS 2.41% 99,810 Eastman Kodak Company 2,562,123 229,460 Xerox Corporation # 3,166,548 ------------ 5,728,671 ------------ MISCELLANEOUS MANUFACTURING INDUSTRIES 1.66% 149,200 Tyco International Ltd. 3,953,800 ------------ PAPER AND ALLIED PRODUCTS 0.66% 26,570 Kimberly-Clark Corporation 1,570,021 ------------ PETROLEUM REFINING AND RELATED INDUSTRIES 1.35% 48,852 ConocoPhillips 3,203,226 ------------ PRINTING, PUBLISHING AND ALLIED INDUSTRIES 0.80% 37,820 American Greetings Corporation # 827,123 12,100 Gannett Co., Inc. 1,078,836 ------------ 1,905,959 ------------ RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS 3.33% 240,330 The Goodyear Tire & Rubber Company # 1,888,994 92,400 Sealed Air Corporation # 5,002,536 58,780 Tupperware Corporation 1,019,245 ------------ 7,910,775 ------------ TOBACCO PRODUCTS 5.69% 178,410 Altria Group, Inc. 9,709,072 32,390 R.J. Reynolds Tobacco Holdings, Inc. 1,883,479 53,840 UST Inc. 1,921,550 ------------ 13,514,101 ------------ TRANSPORTATION EQUIPMENT 3.88% 51,120 The Boeing Company 2,154,197 169,800 Delphi Corporation 1,733,658 189,530 Ford Motor Company 3,032,480 43,150 General Motors Corporation 2,304,210 ------------ 9,224,545 ------------ Total Manufacturing 78,340,616 ------------ MINING 2.54% MINING AND QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS 0.45% 22,200 Vulcan Materials Company 1,056,054 ------------ OIL AND GAS EXTRACTION 2.09% 41,300 Devon Energy Corporation 2,364,838 28,500 EOG Resources, Inc. 1,315,845 30,600 Occidental Petroleum Corporation 1,292,544 ------------ 4,973,227 ------------ Total Mining 6,029,281 ------------ RETAIL TRADE 6.85% BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY AND MOBILE HOME DEALERS 0.46% 31,300 The Sherwin-Williams Company 1,087,362 ------------ FOOD STORES 3.20% 181,360 Albertson's, Inc. 4,107,804 188,340 The Kroger Co. # 3,486,173 ------------ 7,593,977 ------------ GENERAL MERCHANDISE STORES 2.48% 116,000 Costco Wholesale Corporation # 4,312,880 54,560 The May Department Stores Company 1,586,059 ------------ 5,898,939 ------------ MISCELLANEOUS RETAIL 0.71% 134,610 Toys "R" Us, Inc. # 1,701,470 ------------ Total Retail Trade 16,281,748 ------------ SERVICES 7.83% BUSINESS SERVICES 3.53% 30,700 D&B Corporation # 1,556,797 65,240 Electronic Data Systems Corporation 1,600,990 47,500 Microsoft Corporation 1,308,150 473,370 Sun Microsystems, Inc. # 2,215,231 113,970 Unisys Corporation # 1,692,455 ------------ 8,373,623 ------------ ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT AND RELATED SERVICES 0.69% 27,200 Moody's Corporation 1,646,960 ------------ HEALTH SERVICES 1.99% 32,300 HCA Inc. 1,387,608 208,550 Tenet Healthcare Corporation # 3,347,228 ------------ 4,734,836 ------------ HOTELS, ROOMING HOUSES, CAMPS AND OTHER LODGING PLACES 0.45% 23,000 Marriott International, Inc. 1,062,600 ------------ PERSONAL SERVICES 1.17% 29,900 H&R Block, Inc. 1,655,563 210,440 Service Corporation International # 1,134,272 ------------ 2,789,835 ------------ Total Services 18,607,854 ------------ TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS AND SANITARY SERVICES 12.66% COMMUNICATIONS 6.28% 141,020 BellSouth Corporation 3,990,866 149,160 SBC Communications Inc. 3,888,601 178,070 Sprint Corporation 2,923,909 117,280 Verizon Communications Inc. 4,114,182 ------------ 14,917,558 ------------ ELECTRIC, GAS AND SANITARY SERVICES 4.99% 41,700 American Electric Power Company, Inc. 1,272,267 134,660 Duke Energy Corporation 2,753,797 394,840 EL Paso Corporation 3,233,740 40,790 FirstEnergy Corp. 1,435,808 62,430 PG&E Corporation # 1,733,681 48,090 Waste Management, Inc. 1,423,464 ------------ 11,852,757 ------------ MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING 0.50% 16,000 United Parcel Service, Inc. 1,192,800 ------------ TRANSPORTATION BY AIR 0.89% 82,540 AMR Corporation # 1,068,893 87,220 Delta Air Lines, Inc. 1,030,068 ------------ 2,098,961 ------------ Total Transportation, Communications, Electric, Gas and Sanitary Services 30,062,076 ------------ WHOLESALE TRADE 1.69% WHOLESALE TRADE - NON-DURABLE GOODS 1.69% 183,540 Safeway Inc. # 4,021,361 ------------ Total Wholesale Trade 4,021,361 ------------ TOTAL COMMON STOCK (COST $190,643,777) 224,781,465 ------------ SHORT TERM INVESTMENTS 6.34% MONEY MARKET FUND 6.34% 15,050,182 Federated Prime Obligations Fund 15,050,182 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $15,050,182) 15,050,182 ------------ TOTAL INVESTMENTS 100.97% (COST $205,693,959) 239,831,647 ------------ LIABILITIES, LESS OTHER ASSETS (0.97)% (2,284,073) ------------ NET ASSETS 100% $237,547,574 ------------ ------------ # Non-income producing security. See notes to financial statements. AssetMark Small/Mid Cap Growth Fund SCHEDULE OF INVESTMENTS December 31, 2003 (Unaudited) NUMBER OF MARKET SHARES VALUE - --------- ------ COMMON STOCK 96.28% FINANCE, INSURANCE AND REAL ESTATE 6.62% INSURANCE CARRIERS 0.24% 2,600 Cincinnati Financial Corporation $ 108,888 1,500 Axis Capital Holdings Limited 43,920 ----------- 152,808 ----------- NON-DEPOSITORY CREDIT INSTITUTIONS 2.28% 2,400 CapitalSource Inc. # 52,032 45,000 Financial Federal Corporation # 1,374,750 ----------- 1,426,782 ----------- SECURITY AND COMMODITY BROKERS, DEALERS, EXCHANGES AND SERVICES 4.10% 27,000 BlackRock, Inc. 1,433,970 1,800 The Chicago Mercantile Exchange 130,248 11,400 SEI Investments Company 347,358 14,000 T. Rowe Price Group Inc. 663,740 ----------- 2,575,316 ----------- Total Finance, Insurance, and Real Estate 4,154,906 ----------- MANUFACTURING 24.91% CHEMICALS AND ALLIED PRODUCTS 2.40% 3,200 Eon Labs, Inc. # 163,040 6,400 Genentech, Inc. # 598,848 14,400 MedImmune, Inc. # 365,760 8,400 MGI Pharma, Inc. # 345,660 2,400 Pharmion Corp. # 36,600 ----------- 1,509,908 ----------- ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT AND COMPONENTS, EXCEPT COMPUTER EQUIPMENT 13.14% 18,000 Altera Corporation # 408,600 39,500 Applied Micro Circuits Corporation # 236,210 34,000 CIENA Corporation # 225,760 180,000 Gemstar-TV Guide International, Inc. 909,000 25,000 GlobespanVirata, Inc. # 147,000 11,500 Intersil Corporation 285,775 41,700 Maxim Integrated Products, Inc. 2,076,660 27,000 Network Appliance, Inc. # 554,310 9,600 Novellus Systems, Inc. # 403,680 12,800 Research In Motion Limited # 855,424 55,300 Xilinx, Inc. # 2,142,322 ----------- 8,244,741 ----------- INDUSTRIAL AND COMMERCIAL MACHINERY AND COMPUTER EQUIPMENT 0.93% 14,500 Graco Inc. 581,450 ----------- MEASURING, ANALYZING, AND CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL AND OPTICAL GOODS; WATCHES AND CLOCKS 2.41% 40,000 Techne Corporation # 1,511,200 ----------- PAPER AND ALLIED PRODUCTS 3.64% 70,000 Packaging Corp. of America 1,530,200 31,500 Pactiv Corporation # 752,850 ----------- 2,283,050 ----------- STONE, CLAY, GLASS AND CONCRETE PRODUCTS 2.39% 34,000 Gentex Corporation 1,501,440 ----------- Total Manufacturing 15,631,789 ----------- MINING 2.43% OIL AND GAS EXTRACTION 2.43% 33,000 EOG Resources, Inc. 1,523,610 ----------- Total Mining 1,523,610 ----------- RETAIL TRADE 13.90% EATING AND DRINKING PLACES 2.27% 37,000 IHOP Corp. 1,423,760 ----------- HOME FURNITURE, FURNISHINGS AND EQUIPMENT STORES 4.68% 33,800 Bed Bath & Beyond Inc. # 1,465,230 48,000 RadioShack Corporation 1,472,640 ----------- 2,937,870 ----------- MISCELLANEOUS RETAIL 6.95% 23,100 Amazon.com, Inc. # 1,215,984 48,700 eBay Inc. # 3,145,533 ----------- 4,361,517 ----------- Total Retail Trade 8,723,147 ----------- SERVICES 28.95% AMUSEMENT AND RECREATION SERVICES 1.88% 34,600 Westwood One, Inc. # 1,183,666 ----------- BUSINESS SERVICES 14.36% 29,600 Agile Software Corporation # 293,040 14,000 BARRA, Inc. # 496,860 27,000 BEA Systems, Inc. # 332,100 10,500 CheckFree Corp. # 290,325 9,500 Cognex Corporation 268,280 34,000 GTECH Holdings Corporation 1,682,660 47,100 Juniper Networks, Inc. # 879,828 14,400 Robert Half International Inc. # 336,096 55,200 Siebel Systems, Inc. # 765,624 215,000 SkillSoft PLC # 1,859,750 22,900 webMethods, Inc. # 209,535 35,300 Yahoo! Inc. # 1,594,501 ----------- 9,008,599 ----------- EDUCATIONAL SERVICES 2.20% 55,000 DeVry, Inc. # 1,382,150 ----------- ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT AND RELATED SERVICES 6.76% 24,600 Affymetrix, Inc. # 605,406 17,000 Moody's Corporation 1,029,350 22,200 Paychex, Inc. 825,840 153,000 The ServiceMaster Company 1,782,450 ----------- 4,243,046 ----------- HEALTH SERVICES 0.82% 7,700 Express Scripts, Inc. # 511,511 ----------- PERSONAL SERVICES 2.93% 48,000 Weight Watchers International, Inc. # 1,841,760 ----------- Total Services 18,170,732 ----------- TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS, AND SANITARY SERVICES 19.47% COMMUNICATIONS 14.41% 19,000 Cablevision Systems New York Group # 444,410 4,500 Citadel Broadcasting Company # 100,665 12,200 Clear Channel Communications, Inc. 571,326 20,100 Cox Radio, Inc. # 507,123 44,200 EchoStar Communications Corporation # 1,502,800 22,000 Global Payments Inc. 1,036,640 29,765 InterActiveCorp # 1,009,927 422 InterActiveCorp # 18,019 77,200 Sprint Corp (PCS Group) # 433,864 4,800 Telephone and Data Systems, Inc. 300,240 51,700 Time Warner Telecom Inc. # 523,721 41,512 Univision Communications Inc. # 1,647,611 36,000 XM Satellite Radio Holdings Inc. # 948,960 ----------- 9,045,306 ----------- TRANSPORTATION SERVICES 5.06% 40,000 C.H. Robinson Worldwide, Inc. 1,516,400 44,000 Expeditors International of Washington, Inc. 1,657,040 ----------- 3,173,440 ----------- Total Transportation, Communications, Electric, Gas and Sanitary Services 12,218,746 ----------- TOTAL COMMON STOCK (COST $52,122,836) 60,422,930 ----------- SHORT TERM INVESTMENTS 5.15% MONEY MARKET FUND 5.15% 3,235,560 Federated Prime Obligations Fund 3,235,560 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $3,235,560) 3,235,560 ----------- TOTAL INVESTMENTS 101.43% (COST $55,358,396) 63,658,490 ----------- LIABILITIES, LESS OTHER ASSETS (1.43)% (894,916) ----------- NET ASSETS 100% $62,763,574 ----------- ----------- # Non-income producing security. See notes to financial statements. AssetMark Small/Mid Cap Value Fund SCHEDULE OF INVESTMENTS December 31, 2003 (Unaudited) NUMBER OF MARKET SHARES VALUE - --------- ------ COMMON STOCK 93.65% FINANCE, INSURANCE AND REAL ESTATE 21.58% DEPOSITORY INSTITUTIONS 5.03% 16,700 Banknorth Group, Inc. $ 543,251 13,100 GreenPoint Financial Corp. 462,692 11,200 Hibernia Corporation 263,312 20,500 Northern Trust Corporation 951,610 19,500 North Fork Bancorporation, Inc. 789,165 ----------- 3,010,030 ----------- HOLDING AND OTHER INVESTMENT OFFICES 1.93% 16,300 Brascan Corporation 497,802 14,025 The Rouse Company 659,175 ----------- 1,156,977 ----------- INSURANCE AGENTS, BROKERS AND SERVICES 0.89% 15,600 Willis Group Holdings Limited 531,492 ----------- INSURANCE CARRIERS 10.75% 8,600 Ambac Financial Group, Inc. 596,754 12,800 Everest Re Group, Ltd. 1,082,880 20,150 HCC Insurance Holdings, Inc. 640,770 15,400 Horace Mann Educators Corporation 215,138 2,235 Markel Corporation # 566,595 19,300 MBIA Inc. 1,143,139 10,600 Oxford Health Plans, Inc. 461,100 36,700 The Phoenix Companies, Inc. 441,868 15,100 The St. Paul Companies, Inc. 598,715 8,875 XL Capital Ltd. 688,256 ----------- 6,435,215 ----------- SECURITY AND COMMODITY BROKERS, DEALERS, EXCHANGES AND SERVICES 2.98% 12,500 Franklin Resources, Inc. 650,750 38,900 Janus Capital Group Inc. 638,349 10,425 T. Rowe Price Group Inc. 494,249 ----------- 1,783,348 ----------- Total Finance, Insurance, and Real Estate 12,917,062 ----------- MANUFACTURING 31.49% CHEMICALS AND ALLIED PRODUCTS 3.58% 237,600 Church & Dwight Co. 237,600 11,400 The Clorox Company 553,584 13,200 The Dial Corporation 296,088 16,000 Georgia Gulf Corporation 462,080 17,100 International Flavors & Fragrances Inc. 597,132 ----------- 2,146,484 ----------- ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT AND COMPONENTS, EXCEPT COMPUTER EQUIPMENT 3.58% 111,500 Agere Systems Inc. # 344,230 31,900 Andrew Corporation # 367,169 55,100 Arris Group Inc. # 398,924 15,750 Energizer Holdings, Inc. # 591,570 8,700 Moog Inc. # 439,660 ----------- 2,141,553 ----------- FABRICATED METAL PRODUCTS, EXCEPT MACHINERY AND TRANSPORTATION EQUIPMENT 0.58% 15,500 Watts Water Technologies, Inc. 344,100 ----------- FOOD AND KINDRED PRODUCTS 1.26% 3,200 Adolph Coors Company 61,710 8,100 American Italian Pasta Company # 347,770 11,550 McCormick & Company, Incorporated 347,655 ----------- 757,135 ----------- FURNITURE AND FIXTURES 1.96% 25,250 Herman Miller, Inc. 612,818 39,250 Steelcase Inc. 563,630 ----------- 1,176,448 ----------- INDUSTRIAL AND COMMERCIAL MACHINERY AND COMPUTER EQUIPMENT 5.69% 12,425 The Black & Decker Corporation 612,801 16,375 IDEX Corporation 681,036 20,775 Pitney Bowes Inc. 843,881 20,000 The Stanley Works 757,400 13,800 York International Corporation 507,840 ----------- 3,402,958 ----------- MEASURING, ANALYZING AND CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL AND OPTICAL GOODS; WATCHES AND CLOCKS 3.37% 19,400 Baxter International Inc. 592,088 7,300 C.R. Bard, Inc. 593,125 15,300 CTI Molecular Imaging, Inc. # 258,723 14,150 Invacare Corporation 571,235 ----------- 2,015,171 ----------- MISCELLANEOUS MANUFACTURING INDUSTRIES 0.29% 8,225 Hasbro, Inc. 175,028 ----------- PAPER AND ALLIED PRODUCTS 2.62% 26,000 Boise Cascade Corporation 854,360 6,400 Bowater Incorporated 296,384 19,200 Packaging Corp of America 419,712 ----------- 1,570,456 ----------- PRINTING, PUBLISHING AND ALLIED INDUSTRIES 4.94% 17,400 Belo Corp. 493,116 14,800 Harte-Hanks, Inc. 321,900 6,500 Knight-Ridder, Inc. 502,905 8,165 The McClatchy Company 561,752 26,200 Moore Wallace Incorporated # 513,202 19,250 Valassis Communications, Inc. # 564,988 ----------- 2,957,863 ----------- TRANSPORTATION EQUIPMENT 3.62% 23,500 Goodrich Corporation 694,746 14,500 A.O. Smith Corporation 508,225 19,700 United Defense Industries, Inc. # 628,036 19,800 Wabtec Corporation 337,392 ----------- 2,168,399 ----------- Total Manufacturing 18,855,595 ----------- MINING 1.75% OIL AND GAS EXTRACTION 1.75% 31,700 Pride International, Inc. # 590,888 10500 Weatherford International Ltd. # 457,200 ----------- 1,048,088 ----------- Total Mining 1,048,088 ----------- RETAIL TRADE 3.01% AUTOMOTIVE DEALERS AND GASOLINE SERVICE STATIONS 0.48% 15,300 CSK Auto Corporation # 287,181 ----------- GENERAL MERCHANDISE STORES 0.48% 5,325 The Neiman Marcus Group, Inc. # 285,793 ----------- EATING AND DRINKING PLACES 2.05% 12,400 ARAMARK Corporation 340,008 25,900 Yum! Brands, Inc # 890,960 ----------- 1,230,968 ----------- Total Retail Trade 1,803,942 ----------- SERVICES 21.96% AMUSEMENT AND RECREATION SERVICES 0.47% 11,500 Alliance Gaming Corporation # 283,475 ----------- BUSINESS SERVICES 15.42% 8,150 ADVO, Inc. 239,788 20,600 Amdocs Limited # 463,088 40,000 The BISYS Group, Inc. # 595,200 8,200 Brady Corporation 334,150 37,175 Cendant Corporation # 827,887 10,075 Certegy Inc. 330,460 14,575 D&B Corporation # 739,098 22,850 Equifax Inc. 559,825 557 Grey Global Group Inc. 380,459 10,900 Hyperion Solutions Corporation # 328,526 40,850 IMS Health Incorporated 1,015,531 45,910 The Interpublic Group of Companies, Inc. # 716,196 6,600 Lamar Advertising Company # 246,312 10,200 Manpower Inc. 480,216 48,600 Novell, Inc. # 511,272 30,650 Sotheby's Holdings, Inc. # 418,679 23,500 SunGard Data Systems Inc. # 651,185 13,600 Take-Two Interactive Software, Inc. # 391,816 ----------- 9,229,688 ----------- EDUCATIONAL SERVICES 0.38% 9,050 DeVry, Inc. # 227,427 ----------- ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT AND RELATED SERVICES 2.17% 36,350 Accenture Ltd. # 956,732 29,700 The ServiceMaster Company 346,005 ----------- 1,302,737 ----------- HEALTH SERVICES 1.88% 9,800 Kindred Healthcare, Inc. # 509,404 22,500 Sierra Health Services, Inc. # 617,625 ----------- 1,127,029 ----------- HOTELS, ROOMING HOUSES, CAMPS AND OTHER LODGING PLACES 0.98% 31,600 Intrawest Corporation 584,284 ----------- MOTION PICTURES 0.66% 28,500 Hollywood Entertainment Corporation # 391,875 ----------- Total Service 13,146,515 ----------- TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS AND SANITARY SERVICES 8.88% COMMUNICATIONS 3.55% 20,150 Anixter International Inc. # 521,482 21,855 Cablevision Systems New York Group # 511,188 21,400 CenturyTel, Inc. 698,068 7,500 Entercom Communications Corp. # 397,200 ----------- 2,127,938 ----------- ELECTRIC, GAS AND SANITARY SERVICES 2.78% 7,500 Peoples Energy Corporation 315,300 21,200 PG&E Corporation # 588,724 11,600 PPL Corporation 507,500 34,000 Reliant Resources, Inc. # 250,240 ----------- 1,661,764 ----------- MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING 1.36% 9,100 CNF Inc. 308,490 14,000 Yellow Roadway Corporation # 506,380 ----------- 814,870 ----------- WATER TRANSPORTATION 1.19% 20,500 Royal Caribbean Cruises Ltd. 713,195 ----------- Total Transportation, Communications, Electric, Gas and Sanitary Services 5,317,767 ----------- WHOLESALE TRADE 4.98% WHOLESALE TRADE-DURABLE GOODS 3.96% 24,400 Apogent Technologies Inc. # 562,176 21,200 IKON Office Solutions, Inc. 277,524 16,300 Insight Enterprises, Inc. 306,440 30,350 Omnicare, Inc. 1,225,837 ----------- 2,371,977 ----------- WHOLESALE TRADE-NON-DURABLE GOODS 1.02% 24,200 Airgas, Inc. 547,740 5,900 Safeway Inc. # 59,157 ----------- 606,897 ----------- Total Wholesale Trade 2,978,874 ----------- TOTAL COMMON STOCK (COST $47,170,240) 56,067,843 ----------- SHORT TERM INVESTMENTS 5.80% MONEY MARKET FUND 5.80% 3,473,097 Federated Prime Obligations Fund 3,473,097 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $3,473,097) 3,473,097 ----------- TOTAL INVESTMENTS 99.45% (COST $50,643,337) 59,540,940 ----------- OTHER ASSETS, LESS LIABILITIES 0.55% 330,145 ----------- NET ASSETS 100% $59,871,085 ----------- ----------- # Non-income producing security. See notes to financial statements. AssetMark International Equity Fund SCHEDULE OF INVESTMENTS December 31, 2003 (Unaudited) NUMBER OF MARKET SHARES VALUE - --------- ------ COMMON STOCK 96.24% AUSTRALIA 4.21% 100,000 BHP Billiton Limited $ 1,826,000 111,800 Boral Limited 1,711,669 293,400 Coca-Cola Amatil Limited 2,754,439 ------------ 6,292,108 ------------ AUSTRIA 0.74% 17,900 Erste Bank der oesterreichischen Sparkassen AG 1,105,993 ------------ BRAZIL 0.65% 33,400 Petroleo Brasileiro SA - Petrobras # 976,616 ------------ BRITAIN 18.33% 60,000 Anglo American PLC 1,327,200 38,400 AstraZeneca PLC 1,857,792 43,500 BP PLC 2,146,725 57,900 Barclays PLC 2,104,665 21,700 Celltech Group PLC # 289,912 204,200 Compass Group PLC 1,389,091 31,200 Diageo PLC 1,649,232 146,000 EMI Group PLC 829,835 25,200 Galen Holdings PLC 1,310,375 24,400 HSBC Holdings PLC 1,923,208 44,531 J Sainsbury PLC 997,267 299,800 Pearson PLC 3,360,758 26,200 Rio Tinto PLC 2,916,322 210,200 Vodafone Group PLC 5,263,408 ------------ 27,365,790 ------------ CANADA 0.47% 11,000 Canadian National Railway Company 696,080 ------------ FINLAND 2.14% 187,605 Nokia Oyj 3,189,285 ------------ FRANCE 14.81% 80,010 Alcatel SA 1,028,129 187,700 Axa 4,029,919 140,800 BNP Paribas SA 4,432,863 49,500 Dassault Systemes SA 2,272,050 48,100 France Telecom SA 1,375,179 61,100 Groupe Danone 1,985,139 89,750 PernodRicard SA 2,494,781 45,700 Sanofi-Synthelabo SA 1,725,175 30,000 Total SA 2,775,300 ------------ 22,118,535 ------------ GERMANY 7.90% 48,600 Continental AG 1,850,085 195,600 Deutsche Telekom AG 3,546,228 33,400 E.ON AG 2,185,696 6,600 Puma AG Rudolf Dassler Sport 1,165,489 35,900 SAP AG 1,492,004 19,500 Siemens AG 1,558,830 ------------ 11,798,332 ------------ HONG KONG 3.80% 314,600 The Bank of East Asia, Ltd. 966,451 36,400 Hutchison Whampoa Limited 1,342,097 32,000 Shanghai Industrial Holdings Limited 731,619 926,000 Sino Land Company Limited 2,638,915 ------------ 5,679,082 ------------ INDIA 0.96% 48,400 ICICI Bank Limited 831,512 6,200 Infosys Technologies Limited 593,340 ------------ 1,424,852 ------------ INDONESIA 0.50% 45,800 PT Telekomunikasi Indonesia 752,036 ------------ IRELAND 1.33% 39,300 Ryanair Holdings PLC # 1,990,152 ------------ ISRAEL 0.38% 10,000 Teva Pharmaceutical Industries Ltd. 567,100 ------------ ITALY 2.57% 22,700 Eni SPA 2,156,046 96,600 Luxottica Group SPA 1,680,840 ------------ 3,836,886 ------------ JAPAN 22.63% 99,000 Advantest Corporation 1,967,130 56,400 Arisawa Mfg. Co., Ltd. 2,283,997 82,700 Canon Inc. 3,939,828 66,500 Funai Electric Co., Ltd. # 1,825,538 60,600 Honda Motor Co., Ltd. 1,363,500 3,200 Kao Corporation 650,928 21,000 Komatsu Ltd. 532,984 32,000 Konami Corporation 948,480 206,800 Matsushita Electric Industrial Co., Ltd. 2,882,792 98,800 Mitsubishi Corporation 2,094,560 232,600 Mitsubishi Tokyo Financial Group, Inc. (MTFG) # 1,821,258 151,439 NEC Corporation 1,137,155 182,000 NTT DoCoMo, Inc. 4,167,800 125,600 Nintendo Co., Ltd. 1,464,961 55,600 Nippon Telegraph and Telephone Corporation (NTT) 1,365,536 59,500 Nissan Motor Co., Ltd. 1,336,370 2,000 Nitto Denko Corporation 1,063,731 66,000 Nomura Holdings, Inc. 1,117,380 32,700 Pioneer Corporation 921,159 25,900 Sony Corporation 897,953 ------------ 33,783,040 ------------ MEXICO 0.85% 24,600 America Movil SA de CV 672,564 23,000 Cemex SA de CV 602,600 ------------ 1,275,164 ------------ NETHERLANDS 3.25% 150,478 Aegon NV 2,227,074 30,000 Akzo Nobel NV 1,146,000 63,200 ING Groep NV 1,479,512 ------------ 4,852,586 ------------ SINGAPORE 1.94% 41,000 DBS Group Holdings Limited 1,419,539 95,400 United Overseas Bank Limited 1,482,993 ------------ 2,902,532 ------------ SOUTH AFRICA 0.56% 66,000 ABSA Group Limited 833,329 ------------ SOUTH KOREA 0.90% 18,000 Kookmin Bank 681,120 19,300 POSCO 655,621 ------------ 1,336,741 ------------ SWEDEN 2.45% 50,000 AB SKF 1,931,815 32,700 Atlas Copco AB 1,170,245 12,500 Electrolux AB 553,250 ------------ 3,655,310 ------------ SWITZERLAND 3.79% 53,450 Novartis AG 2,452,821 14,000 Roche Holding AG 1,412,169 26,500 Swiss Re 1,789,166 ------------ 5,654,156 ------------ TAIWAN 0.43% 63,288 Taiwan Semiconductor Manufacturing Company Ltd. # 648,069 ------------ THAILAND 0.65% 248,000 Shin Corporation Public Company Limited 970,151 ------------ TOTAL COMMON STOCK (COST $116,234,990) 143,703,925 ------------ SHORT TERM INVESTMENTS 3.49% MONEY MARKET FUND 3.49% 5,215,971 Federated Prime Obligations Fund 5,215,971 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $5,215,971) 5,215,971 ------------ TOTAL INVESTMENTS 99.73% (COST $121,450,961) 148,919,896 ------------ OTHER ASSETS, LESS LIABILITIES 0.27% 399,925 ------------ NET ASSETS 100% $149,319,821 ------------ ------------ # Non-income producing security. See notes to financial statements. AssetMark Real Estate Securities Fund SCHEDULE OF INVESTMENTS December 31, 2003 (Unaudited) NUMBER OF MARKET SHARES VALUE - --------- ------ REAL ESTATE INVESTMENT TRUSTS 95.09% COMMON STOCK 88.10% APARTMENTS 22.62% 21,180 Apartment Investment & Management Company $ 730,710 46,715 Archstone-Smith Trust 1,307,085 32,480 Avalonbay Communities, Inc. 1,552,544 17,120 BRE Properties, Inc. 571,808 15,210 Camden Property Trust 673,803 89,940 Equity Residential 2,654,129 18,330 Essex Property Trust, Inc. 1,177,153 7,260 Gables Residential Trust 252,212 25,660 Home Properties, Inc. 1,036,407 80,960 United Dominion Realty Trust, Inc. 1,554,432 ----------- 11,510,283 ----------- DIVERSIFIED 9.03% 7,420 Colonial Properties Trust 293,832 30,820 Liberty Property Trust 1,198,898 53,550 Vornado Realty Trust 2,931,863 5,810 Washington Real Estate Investment Trust 169,652 ----------- 4,594,245 ----------- OFFICE PROPERTY 17.05% 8,660 Alexandria Real Estate Equities, Inc. 501,414 7,400 American Financial Realty Trust 126,170 29,590 Arden Realty, Inc. 897,761 29,280 Boston Properties, Inc. 1,411,003 11,860 Brandywine Realty Trust 317,492 30,200 CarrAmerica Realty Corporation 899,356 6,900 Corporate Office Properties Trust 144,900 8,020 Cousins Properties, Inc. 245,412 30,330 Crescent Real Estate Equities Company 519,553 39,550 Equity Office Properties Trust 1,133,108 8,800 Glenborough Realty Trust Incorporated 175,560 3,840 Kilroy Realty Corporation 125,760 8,980 Mack-Cali Realty Corporation 373,747 26,400 Maguire Properties, Inc. 641,520 11,500 Prentiss Properties Trust 379,385 19,040 SL Green Realty Corp. 781,592 ----------- 8,673,733 ----------- REGIONAL MALLS 18.56% 8,640 CBL & Associates Properties, Inc. 488,160 59,320 General Growth Properties, Inc. 1,646,130 44,940 The Macerich Company 1,999,830 13,290 The Rouse Company 624,630 87,710 Simon Property Group, Inc. 4,064,481 30,000 Taubman Centers, Inc. 618,000 ----------- 9,441,231 ----------- SHOPPING CENTERS 11.13% 14,150 Developers Diversified Realty Corporation 475,016 26,690 Federal Realty Investment Trust 1,024,629 12,470 Kimco Realty Corporation 558,033 14,830 New Plan Excel Realty Trust 365,856 37,010 Pan Pacific Retail Properties, Inc. 1,763,527 25,020 Regency Centers Corporation 997,047 10,860 Weingarten Realty Investors 481,641 ----------- 5,665,749 ----------- WAREHOUSE/INDUSTRIAL 9.71% 42,100 AMB Property Corporation 1,384,248 6,610 CenterPoint Properties Trust 495,089 15,920 Duke Realty Corporation 493,520 72,970 ProLogis 2,341,607 5,450 PS Business Parks, Inc. 224,867 ----------- 4,939,331 ----------- TOTAL COMMON STOCK (COST $37,637,856) 44,824,572 ----------- PREFERRED STOCK 6.99% DIVERSIFIED 0.68% 12,900 Lexington Corporate Properties Trust, 8.05% 345,075 ----------- OFFICE PROPERTY 2.28% 42,900 Equity Office Properties Trust, 7.75% 1,161,732 ----------- REGIONAL MALLS 2.92% 47,500 CBL & Associates, 7.75% 1,287,250 7,100 The Mills Corp., 9.00% 196,280 ----------- 1,483,530 ----------- SHOPPING CENTERS 1.11% 11,700 Developers Diversified Realty, 8.00% 315,666 9,300 New Plan Excel Realty Trust, 7.625% 248,031 ----------- 563,697 ----------- TOTAL PREFERRED STOCK (COST $3,319,728) 3,554,034 ----------- SHORT TERM INVESTMENTS 5.31% MONEY MARKET FUND 5.31% 2,700,368 Federated Prime Obligations Fund 2,700,368 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $2,700,368) 2,700,368 ----------- TOTAL INVESTMENTS 100.40% (COST $43,657,952) 51,078,974 ----------- LIABILITIES, LESS OTHER ASSETS (0.40)% (201,115) ----------- NET ASSETS 100% $50,877,859 ----------- ----------- See notes to financial statements. AssetMark Tax-Exempt Fixed Income Fund SCHEDULE OF INVESTMENTS December 31, 2003 (Unaudited) PRINCIPAL MARKET AMOUNT VALUE - --------- ------ MUNICIPAL BONDS 92.00% ALABAMA 0.70% $125,000 Alabama State Public School & College Authority, 5.00%, 02-01-2012 $ 138,133 195,000 Birmingham, Alabama, 5.00%, 04-01-2008 215,300 ----------- 353,433 ----------- ARIZONA 3.17% 135,000 Maricopa County Arizona School District No. 3 Tempe Elementary, 5.00%, 07-01-2012 152,184 500,000 Maricopa County Arizona Unified School District No. 48 Scottsdale, 4.75%, 07-01-2010 555,580 300,000 Navajo County Arizona Unified School District No. 32 Blue Ridge, 5.00%, 07-01-2014 338,931 500,000 Phoenix Arizona Civic Improvement Corporation, 5.60%, 07-01-2017 549,840 ----------- 1,596,535 ----------- CALIFORNIA 3.70% 1,225,000 California State Public Works, 5.80%, 01-01-2013 1,356,614 100,000 Fallbrook California High School District San Diego County, 5.375%, 09-01-2014 115,585 350,000 Los Angeles County California Metropolitan Transportation Authority Sales Tax Revenue, 5.00%, 07-01-2014 389,081 ----------- 1,861,280 ----------- CONNECTICUT 3.08% 425,000 Connecticut State, 5.25%, 06-15-2009 481,108 1,025,000 Connecticut State Special Tax Obligations, 4.00%, 09-01-2005 1,070,613 ----------- 1,551,721 ----------- COLORADO 2.17% 935,000 Lower Colorado River Authority, 6.00%, 05-15-2013 1,093,987 ----------- DISTRICT OF COLUMBIA 1.12% 100,000 District of Columbia, 5.50%, 06-01-2007 110,829 200,000 District of Columbia, 5.50%, 06-01-2008 224,774 200,000 District of Columbia, 5.50%, 06-01-2009 227,110 ----------- 562,713 ----------- FLORIDA 0.66% 100,000 Dane County Florida Water & Sewer Systems, 6.25%, 10-01-2007 114,523 100,000 Jacksonville Florida Excise Taxes, 5.65%, 10-01-2005 107,244 100,000 Mary Esther Florida Water & Sewer, 4.95%, 01-01-2007 108,722 ----------- 330,489 ----------- GEORGIA 1.13% 500,000 Atlanta Georgia Water & Wastewater, 5.00%, 11-01-2038 566,265 ----------- HAWAII 0.23% 100,000 Honolulu Hawaii City & County, 6.00%, 01-01-2009 116,311 ----------- IOWA 0.99% 480,000 Polk County Iowa, 4.00%, 06-01-2012 498,696 ----------- ILLINOIS 6.66% 305,000 Chicago Illinois, 5.50%, 01-01-2015 352,400 75,000 Chicago Illinois Park District, 6.25%, 01-01-2016 88,761 750,000 Chicago Illinois Neighborhoods, 5.00%, 01-01-2010 839,040 500,000 Chicago Illinois Wastewater Transmission, 5.50%, 01-01-2010 573,035 100,000 Chicago Illinois Wastewater Transmission, 5.375%, 01-01-2013 114,184 100,000 Chicago Illinois Wastewater Transmission, 6.05%, 12-01-2009 117,626 100,000 Chicago Illinois Metropolitan Water Reclamation District Greater Chicago, 5.50%, 12-01-2012 115,961 100,000 Du Page & Cook Counties Illinois, 4.375%, 01-01-2009 108,056 100,000 Illinois State, 5.25%, 08-01-2012 112,822 100,000 Illinois State Sales Tax, 5.375%, 06-15-2007 110,677 220,000 Illinois State Sales Tax, 5.50%, 06-15-2009 251,455 500,000 Regional Transportation Authority Illinois, 5.375%, 06-01-2014 571,460 ----------- 3,355,477 ----------- INDIANA 2.22% 200,000 Purdue University Indiana, 4.25%, 07-01-2008 215,824 500,000 Purdue University Indiana, 5.25%, 07-01-2008 560,715 300,000 Sunman Dearborn Indiana Intermediate School Building Corp, 5.375%, 07-15-2012 341,079 ----------- 1,117,618 ----------- MARYLAND 0.18% 75,000 Maryland State, 5.50%, 03-01-2013 87,681 ----------- MASSACHUSETTS 3.84% 95,000 Massachusetts Bay Transportation Authority, 5.50%, 03-01-2012 109,169 1,450,000 Massachusetts State, 5.50%, 11-01-2016 1,682,218 120,000 Massachusetts State Water Resources Authority, 6.25%, 12-01-2011 145,468 ----------- 1,936,855 ----------- MICHIGAN 8.81% 1,175,000 Clarkston Michigan Community Schools, 5.00%, 05-01-2016 1,280,868 430,000 Detroit Michigan Sewer Disposal Revenue, 7.10%, 12-15-2009 499,127 150,000 Dundee Michigan Community School District, 5.375%, 05-01-2010 171,661 600,000 Kalamazoo Michigan Public Library, 5.40%, 05-01-2014 691,812 1,610,000 Michigan State Building Authority Revenue, 6.00%, 10-01-2006 1,795,649 ----------- 4,439,117 ----------- MINNESOTA 1.53% 400,000 Osseo Minnesota Independent School District 279, 5.00%, 02-01-2013 446,320 295,000 Prior Lake Minnesota Independent School District No 719, 4.75%, 02-01-2010 326,898 ----------- 773,218 ----------- MISSOURI 0.66% 300,000 Kansas City Missouri Municipal Assistance Corp, 5.00%, 03-01-2012 334,620 ----------- NEBRASKA 0.23% 100,000 Omaha Nebraska Special Obligations, 5.375%, 02-01-2013 113,609 ----------- NEVADA 0.30% 135,000 Clark County Nevada School District, 6.00%, 06-15-2007 150,811 ----------- NEW JERSEY 2.37% 420,000 Gateway New Jersey Housing Development Corporation, 10.50%, 08-01-2025 420,487 700,000 New Jersey State Turnpike Authority, 6.75%, 01-01-2009 775,712 ----------- 1,196,199 ----------- NEW MEXICO 2.32% 1,035,000 University New Mexico, 5.25%, 06-01-2014 1,170,161 ----------- NEW YORK 7.37% 560,000 Long Island Power Authority New York Electric System, 4.00%, 12-01-2010 581,901 300,000 Metropolitan Transportation Authority New York Service Contract, 5.25%, 07-01-2007 329,484 100,000 Metropolitan Transportation Authority New York Dedicated Tax Fund, 5.25%, 04-01-2009 110,604 350,000 Nassau County New York Interim Finance Authority, 5.00%, 11-15-2007 387,419 100,000 New York, New York, 5.25%, 08-01-2011 113,108 500,000 New York City Transit Authority, Metropolitan Transportation Authority Triborough, 5.625%, 01-01-2012 569,710 600,000 New York State Dormitory Authority, 5.25%, 11-15-2023 659,520 200,000 New York State Tollway Authority, 5.25%, 01-01-2010 223,282 650,000 Triborough Bridge and Tunnel Authority, 5.25%, 11-15-2015 738,608 ----------- 3,713,636 ----------- NORTH CAROLINA 1.34% 500,000 North Carolina Municipal Power Agency No 1 Catawba Electric, 5.25%, 01-01-2009 566,085 100,000 North Carolina State, 4.60%, 04-01-2008 109,611 ----------- 675,696 ----------- OHIO 5.89% 100,000 Bowling Green State University of Ohio, 5.00%, 06-01-2008 111,419 305,000 Cleveland Ohio Waterworks, 5.00%, 01-01-2008 337,296 625,000 Ohio State Higher Education Facility, 5.25%, 10-01-2014 713,131 690,000 Ohio State Infrastructure, 5.75%, 02-01-2010 804,554 935,000 Ohio State Water Development Authority Revenue, 4.00%, 12-01-2010 999,506 ----------- 2,965,906 ----------- OREGON 0.89% 175,000 Oregon State Housing & Community Services Department, 5.40%, 07-01-2005 179,113 245,000 Portland Oregon Community College, 5.125%, 06-01-2013 271,433 ----------- 450,546 ----------- PENNSYLVANIA 0.70% 100,000 Pennsylvania Housing Finance Agency, 4.95%, 10-01-2004 102,493 125,000 Pennsylvania State, 5.00%, 02-01-2009 139,456 100,000 Philadelphia Pennsylvania Gas Works, 5.00%, 08-01-2010 111,590 ----------- 353,539 ----------- PUERTO RICO 5.79% 1,000,000 Commonwealth of Puerto Rico, 5.00%, 07-01-2006 1,081,520 1,595,000 Puerto Rico Electric Power Authority, 5.25%, 07-01-2012 1,835,032 ----------- 2,916,552 ----------- SOUTH CAROLINA 0.90% 400,000 Grand Strand South Carolina Water & Sewer Authority, 5.375%, 06-01-2014 453,868 ----------- TENNESSEE 1.24% 250,000 Knoxville Tennessee Water, 5.00%, 03-01-2009 279,008 300,000 Memphis Tennessee, 5.50%, 11-01-2010 346,929 ----------- 625,937 ----------- TEXAS 11.13% 100,000 Austin Texas, 5.25%, 09-01-2007 110,646 515,000 Denton Texas Utility System Revenue, 5.25%, 12-01-2013 583,835 500,000 Duncanville Texas Independent School District, 2.50%, 02-15-2007 508,250 100,000 Flower Mound Texas Waterworks & Sewer, 5.375%, 09-01-2006 109,245 145,000 Frisco Texas, 5.875%, 02-15-2010 169,073 165,000 Frisco Texas, 5.00%, 02-15-2012 182,638 750,000 Harris County Texas, 5.25%, 10-01-2013 844,410 1,075,000 Houston Texas, 2.00%, 03-01-2006 1,083,374 150,000 Mansfield Texas, 5.50%, 02-15-2008 168,962 370,000 Marble Falls Texas Independent School District, 5.00%, 08-15-2015 411,348 200,000 Round Rock Texas Independent School District, 4.75%, 08-01-2010 213,136 80,000 San Antonio Texas Electric & Gas Pre-Refunded - 2002, 5.50%, 02-01-2013 89,352 70,000 San Antonio Texas Electric & Gas Unrefunded Balance - 2002, 5.50%, 02-01-2013 77,012 200,000 Socorro Texas Independent School District, 5.375%, 08-15-2013 226,420 125,000 Spring Texas Independent School District, 5.875%, 08-15-2010 146,721 400,000 Texas State Public Finance Authority, 5.50%, 10-01-2009 457,460 100,000 Texas State University Systems, 5.25%, 03-15-2010 113,288 100,000 University of Texas, 5.25%, 08-15-2008 111,944 ----------- 5,607,114 ----------- UTAH 0.22% 100,000 Jordan Utah School District, 5.125%, 06-15-2008 111,504 ----------- VIRGINIA 3.72% 450,000 Fairfax County Virginia, 5.00%, 06-01-2007 495,594 325,000 Newport News Virginia, 5.00%, 11-01-2014 363,480 100,000 Norfolk Virginia, 5.00%, 01-01-2009 111,552 400,000 Virginia State Housing Development Authority, 4.85%, 07-01-2009 430,624 450,000 Virginia State Resources Authority, 4.00%, 11-01-2005 471,105 ----------- 1,872,355 ----------- WASHINGTON 5.39% 175,000 Bellevue Washington, 5.00%, 01-01-2006 186,302 100,000 King County Washington, 5.50%, 12-01-2010 115,345 100,000 Seattle Washington, 5.00%, 08-01-2012 110,435 200,000 Seattle Washington, 5.00%, 07-01-2013 220,934 100,000 Snohomish County Washington, 5.00%, 12-01-2006 108,624 500,000 Tacoma Washington, 5.00%, 12-01-2014 549,850 700,000 Washington State Motor Vehicle Fuel Tax, 5.00%, 01-01-2010 779,436 800,000 Washington State Motor Vehicle, 0.00%, 06-01-2010 644,272 ----------- 2,715,198 ----------- WEST VIRGINIA 0.63% 300,000 West Virginia Economic Development, 4.00%, 06-01-2007 319,332 ----------- WISCONSIN 0.72% 75,000 Douglas County Wisconsin, 5.50%, 02-01-2014 85,125 150,000 Wisconsin State, 5.00%, 05-01-2008 165,841 100,000 Wisconsin State, 5.50%, 05-01-2009 113,874 ----------- 364,840 ----------- TOTAL MUNICIPAL BONDS (COST $44,902,987) 46,352,819 ----------- SHORT-TERM INVESTMENTS 4.50% REVENUE BONDS 4.40% COLORADO 0.40% 200,000 Denver Colorado Ogden Residences, 1.33%, 12-01-2009 200,000 ----------- KANSAS 0.23% 120,000 Kansas State Development Finance Authority, 1.25% 12-01-2034 120,000 ----------- MICHIGAN 0.40% 200,000 Northern Michigan University, 1.25%, 06-01-2031 200,000 ----------- MISSOURI 1.58% 100,000 Kansas City Missouri, 1.25%, 04-01-2027 100,000 100,000 Missouri State Health & Educational Facilities, 1.30%, 10-01-2032 100,000 200,000 Missouri State Health & Educational Facilities, 1.30%, 07-01-2032 200,000 100,000 Missouri State Health & Educational Facilities, 0.85%, 10-01-2024 100,000 300,000 Missouri State Health & Educational Facilities, 1.30%, 10-01-2024 300,000 ----------- 800,000 ----------- MINNESOTA 0.20% 100,000 Arden Hills Minnesota Housing and Healthcare, 1.30%, 09-01-2029 100,000 ----------- NEW YORK 0.20% 100,000 New York City Municipal Water Finance Authority, 1.30%, 06-15-2033 100,000 ----------- PENNSYLVANIA 0.99% 500000 Allegheny County Hospital Development Authority, 1.15%, 07-15-2028 500,000 ----------- WISCONSIN 0.40% 200,000 Wisconsin State Health & Educational Facilities Authority, 1.30%, 11-01-2017 200,000 ----------- TOTAL REVENUE BONDS (COST $2,220,000) 2,220,000 ----------- NUMBER OF SHARES - --------- MONEY MARKET FUNDS 0.10% 47,755 First American Tax Free Obligations Fund 47,755 ----------- TOTAL MONEY MARKET FUNDS (COST $47,755) 47,755 ----------- TOTAL SHORT-TERM INVESTMENTS 4.50% (COST $2,267,755) 2,267,755 ----------- TOTAL INVESTMENTS 96.50% (COST $47,170,742) 48,620,574 ----------- OTHER ASSETS, LESS LIABILITIES 3.50% 1,760,584 ----------- NET ASSETS 100% $50,381,158 ----------- ----------- See notes to financial statements. AssetMark Core Plus Fixed Income Fund SCHEDULE OF INVESTMENTS December 31, 2003 (Unaudited) NUMBER OF MARKET SHARES VALUE - --------- ------ INVESTMENT COMPANIES 98.77% 2,862,266 BlackRock Core Bond Total Return Portfolio $ 27,649,485 220,451 FFTW International Portfolio 1,942,179 2,490,424 PIMCO Total Return Fund II 25,701,180 224,137 Salomon Brothers Institutional Emerging Markets Debt Fund 1,396,375 355,168 Salomon Brothers Institutional High Yield Bond Fund 2,440,003 628,338 T. Rowe Price High Yield Fund 4,436,067 1,691,932 T. Rowe Price High Yield Fund - Advisor Class 11,956,680 7,720,048 Vanguard Total Bond Market Index Fund 79,593,694 2,442,434 Western Asset Core Portfolio 28,307,816 326,667 Western Asset High Yield Portfolio 3,312,406 ------------ TOTAL INVESTMENT COMPANIES (COST $184,827,121) 186,735,885 ------------ MONEY MARKET FUNDS 0.75% 1,410,455 Federated Prime Obligations Fund 1,410,455 ------------ TOTAL MONEY MARKET FUNDS (COST $1,410,455) 1,410,455 ------------ TOTAL INVESTMENTS 99.52% (COST $186,237,576) 188,146,340 ------------ OTHER ASSETS, LESS LIABILITIES 0.48% 899,876 ------------ NET ASSETS 100% $189,046,216 ------------ ------------ See notes to financial statements. AssetMark Funds STATEMENTS OF ASSETS & LIABILITIES December 31, 2003 (Unaudited) LARGE CAP LARGE CAP SMALL/MID CAP SMALL/MID CAP GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND ----------- ---------- ----------- ---------- ASSETS: Investments, at value (cost $204,515,621, $205,693,959, $55,358,396 and $50,643,337, respectively) $237,822,086 $239,831,647 $63,658,490 $59,540,940 Cash 22,800 -- -- 3,780 Receivable for investment securities sold -- -- -- 1,485,667 Income receivable 130,528 407,043 36,796 62,014 Receivable for fund shares sold 1,882,316 1,976,057 459,058 424,257 Other assets 30,342 30,115 20,878 23,701 ------------ ------------ ----------- ----------- Total Assets 239,888,072 242,244,862 64,175,222 61,540,359 ------------ ------------ ----------- ----------- LIABILITIES: Payable to Investment Advisor 194,692 193,137 51,764 46,054 Payable to Custodian 10,066 7,718 4,370 13,638 Payable for securities purchased -- 3,780,324 1,251,906 1,505,424 Payable for fund shares redeemed 172,949 510,989 43,917 45,510 Other accrued expenses 207,102 205,120 59,691 58,648 ------------ ------------ ----------- ----------- Total Liabilities 584,809 4,697,288 1,411,648 1,669,274 ------------ ------------ ----------- ----------- NET ASSETS $239,303,263 $237,547,574 $62,763,574 $59,871,085 ------------ ------------ ----------- ----------- ------------ ------------ ----------- ----------- NET ASSETS CONSIST OF: Capital stock 215,433,073 204,289,805 55,841,556 50,776,747 Unrealized appreciation on investments 33,306,465 34,137,688 8,300,094 8,897,603 Accumulated net investment income/(loss) (661,991) 104,229 (227,988) (87,802) Accumulated undistributed net realized gain/(loss) (8,774,284) (984,148) (1,150,088) 284,537 ------------ ------------ ----------- ----------- Total Net Assets $239,303,263 $237,547,574 $62,763,574 $59,871,085 ------------ ------------ ----------- ----------- ------------ ------------ ----------- ----------- Shares outstanding (unlimited shares of no par value authorized) 26,994,397 22,616,188 6,995,426 4,989,155 Net asset value, offering and redemption price per share $ 8.86 $ 10.50 $ 8.97 $ 12.00 ------------ ------------ ----------- ----------- ------------ ------------ ----------- -----------
INTERNATIONAL REAL ESTATE TAX-EXEMPT CORE PLUS EQUITY SECURITIES FIXED INCOME FIXED INCOME FUND FUND FUND FUND ------------- ----------- ------------ ------------ ASSETS: Investments, at value (cost $121,450,961, $43,657,952, $47,170,742 and $186,237,576, respectively) $148,919,896 $51,078,974 $48,620,574 $188,146,340 Cash -- -- 136,976 101,011 Receivable for investment securities sold -- -- -- 10,305 Income receivable 154,726 251,165 656,953 770,313 Receivable for fund shares sold 1,392,369 985,223 1,153,870 1,267,590 Other assets 36,633 9,582 9,608 20,855 ------------ ----------- ----------- ------------ Total Assets 150,503,624 52,324,944 50,577,981 190,316,414 ------------ ----------- ----------- ------------ LIABILITIES: Payable to Investment Advisor 135,414 37,371 29,290 124,577 Payable to Custodian 5,037 4,422 1,940 7,880 Payable for securities purchased 341,026 600,393 100,000 780,274 Payable for fund shares redeemed 564,916 752,033 11,417 178,066 Other accrued expenses 137,410 52,866 54,176 179,401 ------------ ----------- ----------- ------------ Total Liabilities 1,183,803 1,447,085 196,823 1,270,198 ------------ ----------- ----------- ------------ NET ASSETS $149,319,821 $50,877,859 $50,381,158 $189,046,216 ------------ ----------- ----------- ------------ ------------ ----------- ----------- ------------ NET ASSETS CONSIST OF: Capital stock 131,507,733 43,720,828 48,947,536 184,628,757 Unrealized appreciation on investments 27,468,935 7,421,022 1,449,832 1,908,764 Accumulated net investment income/(loss) (183,618) 33,970 (2) 2,379,488 Accumulated undistributed net realized gain/(loss) (9,473,229) (297,961) (16,208) 129,207 ------------ ----------- ----------- ------------ Total Net Assets $149,319,821 $50,877,859 $50,381,158 $189,046,216 ------------ ----------- ----------- ------------ ------------ ----------- ----------- ------------ Shares outstanding (unlimited shares of no par value authorized) 14,507,416 3,943,354 4,575,238 17,674,573 Net asset value, offering and redemption price per share $ 10.29 $ 12.90 $ 11.01 $ 10.70 ------------ ----------- ----------- ------------ ------------ ----------- ----------- ------------
See notes to financial statements. AssetMark Funds STATEMENTS OF OPERATIONS For the Six Months Ended December 31, 2003 (Unaudited) LARGE CAP LARGE CAP SMALL/MID CAP SMALL/MID CAP GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND ----------- ---------- ----------- ---------- INVESTMENT INCOME: Dividend income (net of withholding tax of $0, $0, $0 and $253, respectively) $ 581,100 $ 1,616,159 $ 108,262 $ 224,420 Interest income 35,201 52,784 9,122 14,109 ----------- ----------- ---------- ---------- Total investment income 616,301 1,668,943 117,384 238,529 ----------- ----------- ---------- ---------- EXPENSES: Investment advisory fees 819,855 790,501 211,607 212,693 Distribution (12b-1) fees 215,752 208,027 55,686 53,174 Federal and state registration fees 20,303 19,329 9,930 9,909 Custody fees 19,694 15,766 13,610 35,908 Audit fees 22,108 20,794 5,666 5,258 Shareholder servicing fees 43,150 41,605 11,137 10,635 Fund accounting fees 17,669 17,589 15,316 15,745 Administration fees 41,066 39,629 10,239 10,154 Transfer agent fees and expenses 8,854 8,643 5,301 5,243 Reports to shareholders 4,663 4,494 2,446 1,797 Directors' fees and expenses 8,097 7,755 2,086 2,039 Legal fees 19,131 18,525 4,930 4,716 Insurance fees 4,306 4,160 1,135 954 ----------- ----------- ---------- ---------- Total expenses 1,244,648 1,196,817 349,089 368,225 ----------- ----------- ---------- ---------- Less securities lending custody expense offset (8,945) (6,478) (6,599) (4,205) Less directed brokerage expense offset (7,586) (8,641) (8,791) (11,852) Less fees and expenses reimbursed to/(from) the advisor 50,175 49,553 11,673 (25,837) ----------- ----------- ---------- ---------- Net expenses 1,278,292 1,231,251 345,372 326,331 ----------- ----------- ---------- ---------- Net investment income/(loss) (661,991) 437,692 (227,988) (87,802) ----------- ----------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: Net realized gain/(loss) on investments (437,855) 4,263,840 2,488,391 1,813,489 Net change in unrealized appreciation on investments 27,004,114 28,442,476 4,887,596 5,728,142 ----------- ----------- ---------- ---------- Net realized and unrealized gain 26,566,259 32,706,316 7,375,987 7,541,631 ----------- ----------- ---------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $25,904,268 $33,144,008 $7,147,999 $7,453,829 ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------
INTERNATIONAL REAL ESTATE TAX-EXEMPT CORE PLUS EQUITY SECURITIES FIXED INCOME FIXED INCOME FUND FUND FUND FUND ------------- ----------- ------------ ------------ INVESTMENT INCOME: Dividend income (net of withholding tax of $214,583, $0, $0 and $0, respectively) $ 716,059 $1,160,967 -- $4,247,088 Interest income 27,553 8,755 $565,666 4,674 ----------- ---------- -------- ---------- Total investment income 743,612 1,169,722 565,666 4,251,762 ----------- ---------- -------- ---------- EXPENSES: Investment advisory fees 532,056 182,847 152,895 552,044 Distribution (12b-1) fees 140,014 48,118 47,779 184,015 Federal and state registration fees 16,297 9,985 10,335 20,631 Custody fees 7,539 12,476 2,980 14,563 Audit fees 14,822 4,914 4,746 17,498 Shareholder servicing fees 28,003 9,623 9,556 36,803 Fund accounting fees 17,985 14,635 21,612 21,032 Administration fees 26,825 10,093 10,104 35,311 Transfer agent fees and expenses 7,186 5,124 5,205 8,235 Reports to shareholders 3,717 1,766 1,028 3,793 Directors' fees and expenses 6,419 2,017 2,163 7,908 Legal fees 15,619 4,735 5,400 19,247 Insurance fees 2,834 920 974 4,084 ----------- ---------- -------- ---------- Total expenses 819,316 307,253 274,777 925,164 ----------- ---------- -------- ---------- Less securities lending custody expense offset (26,324) (1,295) -- -- Less directed brokerage expense offset (12,802) -- -- -- Less fees and expenses reimbursed to/(from) the advisor 97,501 (19,177) (28,234) 24,352 ----------- ---------- -------- ---------- Net expenses 877,691 286,781 246,543 949,516 ----------- ---------- -------- ---------- Net investment income/(loss) (134,079) 882,941 319,123 3,302,246 ----------- ---------- -------- ---------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: Net realized gain/(loss) on investments 4,675,840 68,727 (16,162) 626,939 Net change in unrealized appreciation/(depreciation) on investments 21,723,309 5,080,085 261,167 (2,156,885) ----------- ---------- -------- ---------- Net realized and unrealized gains/(losses) 26,399,149 5,148,812 245,005 (1,529,946) ----------- ---------- -------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $26,265,070 $6,031,753 $564,128 $1,772,300 ----------- ---------- -------- ---------- ----------- ---------- -------- ----------
See notes to financial statements. AssetMark Funds STATEMENTS OF CHANGES IN NET ASSETS LARGE CAP GROWTH FUND LARGE CAP VALUE FUND --------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, 2003 2003 2003 2003 ------------ -------- ------------ -------- (UNAUDITED) (UNAUDITED) OPERATIONS: Net investment income/(loss) $ (661,991) $ (475,918) $ 437,692 $ 466,178 Net realized gain/(loss) on investment transactions (437,855) (5,959,169) 4,263,840 (4,632,059) Change in unrealized appreciation on investments 27,004,114 14,155,611 28,442,476 8,934,293 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 25,904,268 7,720,524 33,144,008 4,768,412 ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS: Shares sold 113,184,914 87,403,436 104,798,621 85,812,272 Shares issued to holders in reinvestment of dividends -- -- -- 266,539 Shares redeemed (18,149,245) (26,425,348) (17,695,954) (25,881,069) ------------ ------------ ------------ ------------ Net increase 95,035,669 60,978,088 87,102,667 60,197,742 ------------ ------------ ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- -- (546,348) (340,527) From net realized gains -- -- -- (95,707) ------------ ------------ ------------ ------------ Total dividends and distributions -- -- (546,348) (436,234) ------------ ------------ ------------ ------------ INCREASE IN NET ASSETS 120,939,937 68,698,612 119,700,327 64,529,920 NET ASSETS: Beginning of period 118,363,326 49,664,714 117,847,247 53,317,327 ------------ ------------ ------------ ------------ End of period (including undistributed net investment income of $(661,991), $0, $104,229, and $212,885, respectively) $239,303,263 $118,363,326 $237,547,574 $117,847,247 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ CHANGES IN SHARES OUTSTANDING: Shares sold 13,603,917 12,829,109 11,106,044 10,993,720 Shares issued to holders in reinvestment of dividends -- -- -- 34,571 Shares redeemed (2,208,340) (4,049,236) (1,908,656) (3,402,574) ------------ ------------ ------------ ------------ Net increase 11,395,577 8,779,873 9,197,388 7,625,717 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
SMALL/MID CAP GROWTH FUND SMALL/MID CAP VALUE FUND --------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, 2003 2003 2003 2003 ------------ -------- ------------ -------- (UNAUDITED) (UNAUDITED) OPERATIONS: Net investment loss $ (227,988) $ (243,315) $ (87,802) $ (62,169) Net realized gain/(loss) on investment transactions 2,488,391 (2,286,404) 1,813,489 (1,195,149) Change in unrealized appreciation on investments 4,887,596 5,300,542 5,728,142 2,910,061 ----------- ----------- ----------- ----------- Net increase in net assets resulting from operations 7,147,999 2,770,823 7,453,829 1,652,743 ----------- ----------- ----------- ----------- CAPITAL SHARE TRANSACTIONS: Shares sold 30,039,104 23,612,052 27,175,447 24,155,354 Shares issued to holders in reinvestment of dividends -- -- -- -- Shares redeemed (5,944,375) (7,779,200) (4,461,561) (9,415,911) ----------- ----------- ----------- ----------- Net increase 24,094,729 15,832,852 22,713,886 14,739,443 ----------- ----------- ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- -- -- -- From net realized gains -- -- -- -- ----------- ----------- ----------- ----------- Total dividends and distributions -- -- -- -- ----------- ----------- ----------- ----------- INCREASE IN NET ASSETS 31,242,728 18,603,675 30,167,715 16,392,186 NET ASSETS: Beginning of period 31,520,846 12,917,171 29,703,370 13,311,184 ----------- ----------- ----------- ----------- End of period (including undistributed net investment income of ($(227,988), $0, $(87,802), and $0, respectively) $62,763,574 $31,520,846 $59,871,085 $29,703,370 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CHANGES IN SHARES OUTSTANDING: Shares sold 3,590,742 3,563,425 2,472,675 2,697,263 Shares issued to holders in reinvestment of dividends -- -- -- -- Shares redeemed (720,864) (1,231,939) (414,675) (1,077,324) ----------- ----------- ----------- ----------- Net increase 2,869,878 2,331,486 2,058,000 1,619,939 ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
INTERNATIONAL EQUITY FUND REAL ESTATE SECURITIES FUND --------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, 2003 2003 2003 2003 ------------ -------- ------------ -------- (UNAUDITED) (UNAUDITED) OPERATIONS: Net investment income/(loss) $ (134,079) $ 578,558 $ 882,941 $ 873,564 Net realized gain/(loss) on investment transactions 4,675,840 (10,442,783) 68,727 (390,870) Change in unrealized appreciation on investments 21,723,309 6,033,009 5,080,085 1,091,440 ------------ ------------ ----------- ----------- Net increase/(decrease) in net assets resulting from operations 26,265,070 (3,831,216) 6,031,753 1,574,134 ------------ ------------ ----------- ----------- CAPITAL SHARE TRANSACTIONS: Shares sold 84,874,709 162,199,383 24,345,374 19,161,329 Shares issued to holders in reinvestment of dividends -- 130,931 -- 370,198 Shares redeemed (38,140,040) (138,663,722) (4,429,026) (8,494,953) ------------ ------------ ----------- ----------- Net increase 46,734,669 23,666,592 19,916,348 11,036,574 ------------ ------------ ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net investment income (595,314) (221,378) (1,258,850) (493,081) From net realized gains -- -- -- (115,740) ------------ ------------ ----------- ----------- Total dividends and distributions (595,314) (221,378) (1,258,850) (608,821) ------------ ------------ ----------- ----------- INCREASE IN NET ASSETS 72,404,425 19,613,998 24,689,251 12,001,887 NET ASSETS: Beginning of period 76,915,396 57,301,398 26,188,608 14,186,721 ------------ ------------ ----------- ----------- End of period (including undistributed net investment income of $(183,618), $545,775, $33,970 and $409,879, respectively) $149,319,821 $ 76,915,396 $50,877,859 $26,188,608 ------------ ------------ ----------- ----------- ------------ ------------ ----------- ----------- CHANGES IN SHARES OUTSTANDING: Shares sold 9,334,573 21,438,768 1,977,973 1,851,300 Shares issued to holders in reinvestment of dividends -- 17,342 -- 37,020 Shares redeemed (4,182,481) (18,495,861) (358,318) (833,112) ------------ ------------ ----------- ----------- Net increase 5,152,092 2,960,249 1,619,655 1,055,208 ------------ ------------ ----------- ----------- ------------ ------------ ----------- -----------
TAX-EXEMPT FIXED CORE PLUS FIXED INCOME FUND INCOME FUND --------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, 2003 2003 2003 2003 ------------ -------- ------------ -------- (UNAUDITED) (UNAUDITED) OPERATIONS: Net investment income $ 319,123 $ 427,641 $ 3,302,246 $ 3,628,827 Net realized gain/(loss) on investment transactions (16,162) 86,881 626,939 (310,078) Change in unrealized appreciation/(depreciation) on investments 261,167 898,953 (2,156,885) 4,279,623 ------------ ----------- ------------ ------------ Net increase in net assets resulting from operations 564,128 1,413,475 1,772,300 7,598,372 ------------ ----------- ------------ ------------ CAPITAL SHARE TRANSACTIONS: Shares sold 31,652,746 25,716,868 114,471,514 118,369,226 Shares issued to holders in reinvestment of dividends 169,172 198,541 542,291 2,116,165 Shares redeemed (7,691,692) (14,891,002) (37,075,330) (66,998,079) ------------ ----------- ------------ ------------ Net increase 24,130,226 11,024,407 77,938,475 53,487,312 ------------ ----------- ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net investment income (326,370) (424,443) (944,591) (3,611,163) From net realized gains (86,926) (1,884) -- (11,763) ------------ ----------- ------------ ------------ Total dividends and distributions (413,296) (426,327) (944,591) (3,622,926) ------------ ----------- ------------ ------------ INCREASE IN NET ASSETS 24,281,058 12,011,555 78,766,184 57,462,758 NET ASSETS: Beginning of period 26,100,100 14,088,545 110,280,032 52,817,274 ------------ ----------- ------------ ------------ End of period (including undistributed net investment income of $(2), $7,245, $2,379,488 and $21,833, respectively) $50,381,158 $26,100,100 $189,046,216 $110,280,032 ------------ ----------- ------------ ------------ ------------ ----------- ------------ ------------ CHANGES IN SHARES OUTSTANDING: Shares sold 2,903,235 2,374,118 10,853,667 11,317,528 Shares issued to holders in reinvestment of dividends 15,407 18,249 (3,525,507) 202,609 Shares redeemed (705,203) (1,376,854) 51,451 (6,431,139) ------------ ----------- ------------ ------------ Net increase 2,213,439 1,015,513 7,379,611 5,088,998 ------------ ----------- ------------ ------------ ------------ ----------- ------------ ------------
See notes to financial statements. AssetMark Funds FINANCIAL HIGHLIGHTS LARGE CAP GROWTH FUND LARGE CAP VALUE FUND ----------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, 2003 2003 2003 2003 ------------ -------- ------------ -------- (UNAUDITED) (UNAUDITED) Per share data for a share of capital stock outstanding for the entire period and selected information for the period are as follows: Net asset value, beginning of period $ 7.59 $ 7.28 $ 8.78 $ 9.20 Income from investment operations: Net investment income (loss) (0.02) -- 0.02 0.06 Net realized and unrealized gains/(losses) on investments 1.29 0.31 1.72 (0.43) ------ ------ ------ ------ Total from investment operations 1.27 0.31 1.74 (0.37) ------ ------ ------ ------ Less distributions: Dividends from net investment income -- -- (0.02) (0.04) Dividends from net realized gains -- -- -- (0.01) ------ ------ ------ ------ Total distributions -- -- (0.02) (0.05) ------ ------ ------ ------ Net asset value, end of period $ 8.86 $ 7.59 $10.50 $ 8.78 ------ ------ ------ ------ ------ ------ ------ ------ Total return 16.73%(1) 4.26% 19.87%(1) -3.89% Supplemental data and ratios: Net assets, end of period (000's) $239,303 $118,363 $237,548 $117,847 Ratio of expenses to average net assets Before Expense Reimbursement 1.42%(2) 1.63% 1.42%(2) 1.61% After Expense Reimbursement 1.48%(2) 1.49% 1.48%(2) 1.49% Ratio of net investment income/(loss) to average net assets Before Expense Reimbursement -0.83%(2) -0.84% 0.47%(2) 0.57% After Expense Reimbursement -0.77%(2) -0.70% 0.53%(2) 0.69% Portfolio turnover rate 6.47% 30.47% 10.79% 49.79%
(1) Not Annualized. (2) Annualized. SMALL/MID CAP GROWTH FUND SMALL/MID CAP VALUE FUND ----------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, 2003 2003 2003 2003 ------------ -------- ------------ -------- (UNAUDITED) (UNAUDITED) Per share data for a share of capital stock outstanding for the entire period and selected information for the period are as follows: Net asset value, beginning of period $ 7.64 $ 7.20 $10.13 $10.15 Income from investment operations: Net investment loss (0.03) -- (0.02) -- Net realized and unrealized gains/(losses) on investments 1.36 0.44 1.89 (0.02) ------ ------ ------ ------ Total from investment operations 1.33 0.44 1.87 (0.02) ------ ------ ------ ------ Less distributions: Dividends from net investment income -- -- -- -- Dividends from net realized gains -- -- -- -- ------ ------ ------ ------ Total distributions -- -- -- -- ------ ------ ------ ------ Net asset value, end of period $ 8.97 $ 7.64 $12.00 $10.13 ------ ------ ------ ------ ------ ------ ------ ------ Total return 17.41%(1) 6.11% 18.46%(1) -0.20% Supplemental data and ratios: Net assets, end of period (000's) $62,764 $31,521 $59,871 $29,703 Ratio of expenses to average net assets Before Expense Reimbursement 1.50%(2) 2.01% 1.65%(2) 2.20% After Expense Reimbursement 1.55%(2) 1.59% 1.53%(2) 1.59% Ratio of net investment loss to average net assets Before Expense Reimbursement -1.07%(2) -1.78% -0.29%(2) -0.97% After Expense Reimbursement -1.02%(2) -1.36% -0.41%(2) -0.36% Portfolio turnover rate 36.65% 19.02% 39.16% 64.32%
(1) Not Annualized. (2) Annualized. INTERNATIONAL EQUITY FUND REAL ESTATE SECURITIES FUND ----------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, 2003 2003 2003 2003 ------------ -------- ------------ -------- (UNAUDITED) (UNAUDITED) Per share data for a share of capital stock outstanding for the entire period and selected information for the period are as follows: Net asset value, beginning of period $ 8.22 $ 8.96 $11.27 $11.18 Income from investment operations: Net investment income 0.03 0.09 0.33 0.56 Net realized and unrealized gains/(losses) on investments 2.08 (0.80) 1.62 (0.06) ------ ------ ------ ------ Total from investment operations 2.11 (0.71) 1.95 0.50 ------ ------ ------ ------ Less distributions: Dividends from net investment income (0.04) (0.03) (0.32) (0.33) Dividends from net realized gains -- -- -- (0.08) ------ ------ ------ ------ Total distributions (0.04) (0.03) (0.32) (0.41) ------ ------ ------ ------ Net asset value, end of period $10.29 $ 8.22 $12.90 $11.27 ------ ------ ------ ------ ------ ------ ------ ------ Total return 25.69%(1) -7.92% 17.33%(1) 4.87% Supplemental data and ratios: Net assets, end of period (000's) $149,320 $76,915 $50,878 $26,189 Ratio of expenses to average net assets Before Expense Reimbursement 1.39%(2) 1.61% 1.59%(2) 2.02% After Expense Reimbursement 1.57%(2) 1.59% 1.49%(2) 1.49% Ratio of net investment income/(loss) to average net assets Before Expense Reimbursement -0.42%(2) 0.97% 4.69%(2) 4.61% After Expense Reimbursement -0.24%(2) 0.99% 4.59%(2) 5.14% Portfolio turnover rate 33.98% 148.87% 4.05% 28.71%
(1) Not Annualized. (2) Annualized. TAX-EXEMPT FIXED CORE PLUS FIXED INCOME FUND INCOME FUND ----------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, 2003 2003 2003 2003 ------------ -------- ------------ -------- (UNAUDITED) (UNAUDITED) Per share data for a share of capital stock outstanding for the entire period and selected information for the period are as follows: Net asset value, beginning of period $11.05 $10.46 $10.71 $10.15 Income from investment operations: Net investment income 0.08 0.22 0.20 0.48 Net realized and unrealized gains/(losses) on investments (0.02) 0.59 (0.14) 0.56 ------ ------ ------ ------ Total from investment operations 0.02 0.81 0.06 1.04 ------ ------ ------ ------ Less distributions: Dividends from net investment income (0.08) (0.22) (0.07) (0.48) Dividends from net realized gains (0.02) -- -- -- ------ ------ ------ ------ Total distributions (0.06) (0.22) (0.07) (0.48) ------ ------ ------ ------ Net asset value, end of period $11.01 $11.05 $10.70 $10.71 ------ ------ ------ ------ ------ ------ ------ ------ Total return 0.57%(1) 7.78% 0.58%(1) 10.47% Supplemental data and ratios: Net assets, end of period (000's) $50,381 $26,100 $189,046 $110,280 Ratio of expenses to average net assets Before Expense Reimbursement 1.44%(2) 1.82% 1.26%(2) 1.41% After Expense Reimbursement 1.29%(2) 1.29% 1.29%(2) 1.29% Ratio of net investment income to average net assets Before Expense Reimbursement 1.82%(2) 1.66% 4.45%(2) 4.69% After Expense Reimbursement 1.67%(2) 2.19% 4.48%(2) 4.81% Portfolio turnover rate 6.05% 19.18% 4.86% 52.99%
(1) Not Annualized. (2) Annualized. See notes to financial statements. AssetMark Funds NOTES TO FINANCIAL STATEMENTS December 31, 2003 (Unaudited) 1. ORGANIZATION AssetMark Funds (the "Trust") was organized as a Delaware business trust under a Declaration of Trust dated January 2, 2001. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company with eight non- diversified funds (the "Funds"): AssetMark Large Cap Growth Fund, AssetMark Large Cap Value Fund, AssetMark Small/Mid Cap Growth Fund, AssetMark Small/Mid Cap Value Fund, AssetMark International Equity Fund, AssetMark Real Estate Securities Fund, AssetMark Tax-Exempt Fixed Income Fund and AssetMark Core Plus Fixed Income Fund. Each Fund represents a distinct portfolio with its own investment objectives and policies. The assets of the AssetMark Core Plus Fixed Income Fund consist of shares of underlying mutual funds. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. The Funds commenced operations on June 29, 2001. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). (a) Investment Valuation Portfolio securities which are traded on stock exchanges are valued at the last sale price as of the close of business on the day the securities are being valued, or, lacking any sales, at the mean between the most recent quoted bid and asked price. Each over-the- counter security for which the last sale price on the day of valuation is available from NASDAQ and falls within the latest bid and asked quotations is valued at that price. All other securities traded in the over-the-counter market are valued at the mean between the most recent bid and asked price. Securities that are traded on both the over-the-counter market and on a stock exchange are valued according to the broadest and most representative market. Investments in open- end investment companies are valued at the closing net asset value per share of each mutual fund on the day of valuation. Securities for which quotations are not readily available will be valued at their fair market value as determined by the Board of Trustees. Effective September 15, 2003, portfolio securities listed on a national or foreign securities exchange, except those listed on NASDAQ, for which market quotations are available are valued at the last quoted sale price on each business day. Portfolio securities traded on NASDAQ will be valued at the NASDAQ Official Closing Price ("NOCP") on each business day. If there is no reported sale on an exchange or NASDAQ, the portfolio security will be valued at the mean between the most recent quoted bid and asked price. Price information on listed securities is taken from the exchange where the security is primarily traded. (b) Organization and Prepaid Initial Registration Expense Expenses incurred by the Trust in connection with the organization and initial public offering were expensed as incurred. These expenses were advanced by the Advisor, and the Advisor has agreed to reimburse the Funds for these expenses, subject to potential recovery (see Note 3). (c) Federal Income Taxes The Funds intend to comply with the requirements of the Internal Revenue Code necessary to qualify as regulated investment companies and to make the requisite distributions of income and capital gains to their shareholders sufficient to relieve them from all or substantially all Federal income taxes. Therefore, no Federal income tax provision is required. The tax character of distributions paid during the year ended June 30, 2003 were the same for financial statement and tax purposes. GAAP requires that permanent differences between financial reporting and tax reporting be reclassified between various components of net assets. The Funds intend to utilize provisions of the federal income tax laws which allow the Funds to carry realized capital losses forward for eight years following the year of loss and offset such losses against any future realized capital gains. Capital loss carryforwards available for federal income tax purposes are as follows: CAPITAL LOSSES EXPIRING: ------------------------ 6/30/10 6/30/11 ------- ------- Large Cap Growth Fund $858,517 $1,841,558 Large Cap Value Fund -- 3,936,721 Small/Mid Cap Growth Fund 319,848 1,785,504 Small/Mid Cap Value Fund 106,060 320,715 International Equity Fund 410,578 5,891,452 Real Estate Securities Fund -- 70,883 Tax-Exempt Fixed Income Fund -- -- Core Plus Fixed Income Fund -- 163,100 Additionally, at June 30, 2003, the Funds deferred on a tax basis post-October losses as follows: Large Cap Growth Fund $5,199,871 Large Cap Value Fund 950,132 Small/Mid Cap Growth Fund 1,245,359 Small/Mid Cap Value Fund 494,371 International Equity Fund 7,441,350 Real Estate Securities Fund 36,633 Tax-Exempt Fixed Income Fund -- Core Plus Fixed Income Fund 199,982 (d) Use of Estimates The preparation of financial statements in conformity with GAAP 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. (e) Indemnifications Under the Funds' organizational documents, its officers and trustees are indemnified against certain liability arising out of the performance of their duties to the Funds. In addition, in the normal course of business the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements are unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote. (f) Distribution to Shareholders The Funds, with the exception of the Tax-Exempt Fixed Income Fund and Core Plus Fixed Income Fund, will distribute any net investment income at least annually. The Tax-Exempt Fixed Income Fund and Core Plus Fixed Income Fund will distribute any net investment income quarterly. All of the Funds will distribute any net realized long or short-term capital gains at least annually. Distributions to shareholders are recorded on the ex-dividend date. The Funds may also pay a special distribution at the end of the calendar year to comply with federal tax requirements. The tax components of dividends paid during the fiscal year ended June 30, 2003 are as follows: JUNE 30, 2003 ----------------------------------- ORDINARY LONG-TERM INCOME CAPITAL GAINS DISTRIBUTIONS DISTRIBUTIONS ------------- ------------- Large Cap Growth Fund $ -- $ -- Large Cap Value Fund 435,442 792 Small/Mid Cap Growth Fund -- -- Small/Mid Cap Value Fund -- -- International Equity Fund 221,378 -- Real Estate Securities Fund 595,223 13,598 Tax-Exempt Fixed Income Fund 426,327 -- Core Plus Fixed Income Fund 3,616,590 6,336 3. INVESTMENT ADVISOR The Trust has an Investment Advisory Agreement (the "Agreement") with AssetMark Investment Services, Inc. (the "Advisor"), with whom certain officers and directors of the Trust are affiliated, to furnish investment advisory services to the Funds. Under the terms of the Agreement, the Trust, on behalf of the Funds, compensates the Advisor for its management services at the following rates, based on each Fund's average daily net assets: Large Cap Growth Fund 0.95% Large Cap Value Fund 0.95% Small/Mid Cap Growth Fund 0.95% Small/Mid Cap Value Fund 1.00% International Equity Fund 0.95% Real Estate Securities Fund 0.95% Tax-Exempt Fixed Income Fund 0.80% Core Plus Fixed Income Fund 0.75% The Advisor has agreed to waive, through October 31, 2004, its management fee and/or reimburse the Fund's other expenses, including organization expenses, to the extent necessary to ensure that the Funds' operating expenses do not exceed the following rates, based on each Fund's average daily net assets: Large Cap Growth Fund 1.49% Large Cap Value Fund 1.49% Small/Mid Cap Growth Fund 1.59% Small/Mid Cap Value Fund 1.59% International Equity Fund 1.59% Real Estate Securities Fund 1.49% Tax-Exempt Fixed Income Fund 1.29% Core Plus Fixed Income Fund 1.29% Any such waiver or reimbursement is subject to later adjustment to allow the Advisor to recoup amounts waived or reimbursed to the extent actual fees and expenses for a fiscal period are less than each Fund's expense limitation cap, provided, however, that the Advisor shall only be entitled to recoup such amounts for a period of three years from the date such amount was waived or reimbursed. Waived/reimbursed expenses subject to potential recovery by year of expiration are as follows: YEAR OF EXPIRATION ------------------------------------- 6/30/04 6/30/05 6/30/06 ------- ------- ------- Large Cap Growth Fund $22,772 $80,252 $93,927 Large Cap Value Fund 22,772 93,986 83,388 Small/Mid Cap Growth Fund 11,898 63,245 76,062 Small/Mid Cap Value Fund 11,898 72,099 105,333 International Equity Fund 45,839 46,594 8,702 Real Estate Securities Fund 10,614 69,912 90,683 Tax-Exempt Fixed Income Fund 4,751 73,116 103,830 Core Plus Fixed Income Fund 9,507 94,633 90,706 The waived/reimbursed amounts expiring on June 30, 2004 represent organization expenses incurred by the Trust, and advanced by the Advisor, in connection with the organization and initial public offering of the Funds. Pursuant to sub-advisory agreements between the Advisor and various sub- advisors, sub-advisors provide sub-advisory services to the Funds. Under the terms of these sub-advisory agreements, the Advisor compensates the sub-advisors based on each Fund's average daily net assets. 4. DISTRIBUTION PLAN The Trust, on behalf of the Funds, has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act (the "12b-1 Plan"), which provides that the Funds will pay distribution fees to AssetMark Capital Corporation, an affiliate of the Advisor, at an annual rate of up to 0.25% of the average daily net assets of the Funds. Quasar Distributors, LLC serves as sub- distributor to each of the Funds. Payments under the distribution plan shall be used to compensate persons who provide support services in connection with the distribution of the Fund's shares and servicing of the Fund's shareholders. Quasar Distributors, LLC is an affiliated company of U.S. Bank, N.A. 5. SERVICE AND CUSTODY AGREEMENTS The Trust has entered into Service Agreements with U.S. Bancorp Fund Services, LLC ("USBFS") and a Custody Agreement with U.S. Bank, N.A., an affiliate of USBFS. Under these agreements, USBFS and U.S. Bank, N.A. provide certain custody, transfer agency, administrative and accounting services. 6. SECURITIES LENDING Effective July 1, 2003 the Funds entered into a securities lending arrangement with U.S. Bank, N.A. (the "Custodian"). Under the terms of the agreement, the Custodian is authorized to loan securities on behalf of the Funds to approved brokers against the receipt of cash collateral at least 102% of the value of the securities loaned. The cash collateral is invested by the Custodian in a money market pooled account approved by the Advisor. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. The agreement provides that after predetermined rebates to brokers, 60% of the net securities lending revenue shall be solely paid as credits to the Funds to be used as an offset against Custody Costs and other charges incurred by the Funds from the Custodian and shall not, in any event, be paid as cash to the Funds. The Custodian shall be paid a fee for administering a securities lending program for the Funds, which shall equal 40% of the net securities lending revenues generated under the agreement as compensation for its securities lending services. As of December 31, 2003, the values of securities loaned and collateral held were as follows: MARKET VALUE OF SECURITIES LOANED COLLATERAL ----------------- ---------- Large Cap Growth Fund $89,453,418 $92,141,363 Large Cap Value Fund 88,315,633 91,972,072 Small/Mid Cap Growth Fund 19,849,271 20,518,282 Small/Mid Cap Value Fund 16,089,645 16,771,321 International Equity Fund 53,264,203 54,968,340 Real Estate Securities Fund 9,524,964 9,865,258 7. BROKERAGE COMMISSION AGREEMENT The Advisor has entered into a brokerage agreement with Abel/Noser Corp. ("Abel Noser") which allows the Advisor to direct one or more of the Investment Managers of the Funds to execute all or a portion of the Investment Manager's equity securities transactions for the Funds through Abel Noser. In return, Abel Noser agrees to rebate broker commissions paid on these directed trades in the form of credits. The Funds may only receive these broker rebates in the form of credits and may not receive cash. These credits are available for use by the Funds such that the Funds can direct Abel Noser to use the credits to make payments for all or part of the cost of certain products or services provided to the Funds that directly and exclusively benefit the Funds. 8. INVESTMENT TRANSACTIONS The aggregate purchases and sales of securities, excluding short-term investments, for the year ended June 30, 2003 are summarized below. There were no purchases or sales of long-term U.S. Government Securities. PURCHASES SALES --------- ----- Large Cap Growth Fund $103,560,165 $10,690,992 Large Cap Value Fund 98,420,005 16,970,235 Small/Mid Cap Growth Fund 38,262,660 15,738,847 Small/Mid Cap Value Fund 35,888,027 15,663,064 International Equity Fund 79,941,265 36,029,631 Real Estate Securities Fund 19,159,260 1,477,965 Tax-Exempt Fixed Income Fund 24,239,344 2,102,733 Core Plus Fixed Income Fund 85,919,781 7,043,824 The cost and net unrealized appreciation as of December 31, 2003, and the components of accumulated earnings/(losses) as of June 30, 2003, on a tax basis were as follows: LARGE CAP LARGE CAP SMALL/MID SMALL/MID INTERNATIONAL REAL ESTATE TAX-EXEMPT CORE PLUS GROWTH VALUE CAP GROWTH CAP VALUE EQUITY SECURITIES FIXED INCOME FIXED INCOME FUND FUND FUND FUND FUND FUND FUND FUND --------- --------- ---------- --------- ------------- ----------- ------------ ------------ Cost of investments $204,952,104 $206,055,094 $55,646,164 $51,251,143 $121,910,414 $43,917,124 $47,170,742 $186,372,226 ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ Gross unrealized appreciation 37,618,303 38,136,528 9,449,806 9,278,656 27,972,592 7,568,634 1,462,021 2,786,634 Gross unrealized depreciation (4,748,321) (4,359,975) (1,437,480) (988,859) (963,110) (406,784) (12,189) (1,012,520) ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ Net unrealized appreciation $ 32,869,982 $ 33,776,553 $ 8,012,326 $ 8,289,797 $ 27,009,482 $ 7,161,850 $ 1,449,832 $ 1,774,114 ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ Cumulative tax cost adjustments $ 436,483 $ 361,135 $ 287,768 $ 607,806 $ 459,453 $ 259,172 $ -- $ 134,650 ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ Undistributed tax-exempt ordinary income $ -- $ -- $ -- $ -- $ -- $ -- $ 7,245 $ -- Undistributed ordinary income -- 212,867 -- -- 599,539 409,879 25,482 21,833 Undistributed long-term capital gain -- -- -- -- -- -- 61,398 -- ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ Total distributable earnings $ -- $ 212,867 $ -- $ -- $ 599,539 $ 409,879 $ 94,125 $ 21,833 ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ Other accumulated losses $ (8,336,429) $ (5,247,988) $(3,638,479) $(1,528,952) $(14,202,833) $ (366,688) $ -- $ (497,732) ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ Total accumulated earnings/ (losses) $ 24,970,036 $ 29,102,567 $ 4,661,615 $ 7,368,651 $ 13,865,641 $ 7,464,213 $ 1,543,957 $ 1,432,865 ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------ ------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
AssetMark Funds ADDITIONAL INFORMATION December 31, 2003 (Unaudited) 1. SHAREHOLDER NOTIFICATION OF FEDERAL TAX STATUS (UNAUDITED) The Large Cap Value Fund designates fifty-six percent of dividends declared during the fiscal year ended June 30, 2003 as dividends qualifying for the dividends received deduction available to corporate shareholders. 2. FOREIGN TAX CREDIT (UNAUDITED) For the year ended June 30, 2003, the International Equity Fund earned foreign source income and paid foreign taxes, which they intend to pass through to their shareholders pursuant to Section 853 of the Internal Revenue Code as follows: Foreign Source Income Earned Foreign Taxes Paid ---------------------------- ------------------ Australia $ 21,773 $ -- Brazil 73,513 5,194 Canada 19,550 2,928 Denmark 28,052 8,649 Finland 84,948 12,742 France 266,011 41,036 Germany 5,674 976 Hong Kong 58,447 4,125 India 1,636 301 Ireland 17,549 555 Israel 1,241 239 Italy 54,165 14,624 Japan 79,609 12,683 Mexico 5,267 -- Netherlands 98,451 20,601 Peru 1,718 -- Singapore 18,072 2,514 South Africa 38,558 6,784 South Korea 20,430 3,371 Spain 47,905 -- Sweden 145,562 22,017 Switzerland 35,849 5,377 Thailand 13,399 1,340 United Kingdom 538,088 48,527 ---------- -------- Total $1,675,467 $214,583 ---------- -------- ---------- -------- 3. DISCLOSURE REGARDING FUND TRUSTEES AND OFFICERS (UNAUDITED) # OF PORTFOLIOS IN FUND OTHER POSITION(S) TERM OF OFFICE COMPLEX DIRECTOR/ NAME, AGE HELD WITH AND LENGTH OF PRINCIPAL OVERSEEN TRUSTEE AND ADDRESS THE TRUST TIME SERVED OCCUPATION DURING PAST FIVE YEARS BY TRUSTEE POSITIONS - ----------- ----------- -------------- --------------------------------- ---------- --------- INDEPENDENT TRUSTEES R. Thomas DeBerry, 62 Trustee Indefinite Term President, DeBerry Consulting 8 None c/o AssetMark since inception (a securities consulting firm) Investment Services, Inc. (1988-present); Director, Investment 2300 Contra Costa Manager Services Division of Resources Boulevard, Suite 425 Trust Company (1998-2000). Pleasant Hill, CA 94523 William J. Klipp, 47 Trustee Indefinite Term Retired; President and Chief Operating 8 Trustee, c/o AssetMark since inception Officer, Schwab Investment Management, Lend Lease Investment Services, Inc. Inc. and Executive Vice President, Rosen Funds 2300 Contra Costa Charles Schwab Funds (1993-1999). (2000-present); Boulevard, Suite 425 Director of Pleasant Hill, CA 94523 SaveDaily.com (2000-present). Leonard H. Rossen, 71 Trustee Indefinite Term President, Len Rossen Consulting (a 8 None c/o AssetMark since inception legal consulting firm) (1999-present); Investment Services, Inc. Corporate Counsel, Franklin Templeton 2300 Contra Costa Mutual Funds and Distributors, Inc. Boulevard, Suite 425 (1996-1999); Regional Counsel and Vice Pleasant Hill, CA 94523 President, Equitable Life Insurance Society (1987-1996); Various key legal positions Securities and Exchange Commission (1973-1987). INTERESTED TRUSTEES Ronald Cordes*, 44 President, Indefinite Term Principal, AssetMark Investment 8 None AssetMark Investment Chairperson, since inception Services, Inc. (1994-present). 2300 Contra Costa Trustee Boulevard, Suite 425 Pleasant Hill, CA 94523 Richard Steiny*, 46 Trustee Indefinite Term Principal, AssetMark Investment 8 None AssetMark Investment since inception Services, Inc. (1994-present). 2300 Contra Costa Boulevard, Suite 425 Pleasant Hill, CA 94523 OFFICERS John Whittaker, 34 Vice President 1-Year Term Vice President and Chief Operating N/A N/A AssetMark since inception Officer, AssetMark Investment Investment Services, Inc. Services, 2000 to present; Director 2300 Contra Costa of Operations, AssetMark Investment Boulevard, Suite 425 Services, Inc., 1997 to 2000; Regional Pleasant Hill, CA 94523 Consultant, AssetMark Investment Services, Inc., 1994 to 1997. Carrie E. Hansen, 33 Treasurer 1-Year Term Director of Operations, AssetMark N/A N/A AssetMark since inception Investment Services, Inc., 2000 to Investment Services, Inc. present; Director of Operations, 2300 Contra Costa Barclays Global Investors, Japan, 1998 Boulevard, Suite 425 to 2000; Principal, Domestic Fund Pleasant Hill, CA 94523 Accounting, Barclays Global Investors, 1997-1998, Manager, Coopers & Lybrand, 1996 to 1997. Teresa Escano, 41 Secretary 1-Year Term Director of Advisor Services Group, N/A N/A AssetMark since inception AssetMark Investment Services, Inc., Investment Services, Inc. 2000 to present; Manager of Advisor 2300 Contra Costa Services Group, 1997 to 2000; Portfolio Boulevard, Suite 425 Manager Administrator for The Pleasant Hill, CA 94523 Headlands Group, Inc. (an investment adviser), 1992 to 1997.
The Statement of Additional Information includes additional information about the Fund's Trustees and is available free of charge upon request by calling the Fund toll free at (888) 278-5809. * Ronald Cordes and Richard Steiny are considered "interested persons" of the Funds as defined in the 1940 Act due to their relationship with the Advisor. 4. AVAILABILITY OF PROXY VOTING INFORMATION Information regarding how the Funds vote proxies relating to portfolio securities is available without charge upon request by calling (888) 278- 5809 or by accessing the SEC's website at www.sec.gov. ASSETMARK FUNDS ASSETMARK LARGE CAP GROWTH FUND ASSETMARK LARGE CAP VALUE FUND ASSETMARK SMALL/MID CAP GROWTH FUND ASSETMARK SMALL/MID CAP VALUE FUND ASSETMARK INTERNATIONAL EQUITY FUND ASSETMARK REAL ESTATE SECURITIES FUND ASSETMARK TAX-EXEMPT FIXED INCOME FUND ASSETMARK CORE PLUS FIXED INCOME FUND INVESTMENT ADVISOR AssetMark Investment Services, Inc. 2300 Contra Costa Blvd., Suite 425 Pleasant Hill, CA 94523 LEGAL COUNSEL Stradley Ronon Stevens & Young, LLP 2600 One Commerce Square Philadelphia, PA 19103 INDEPENDENT AUDITORS PricewaterhouseCoopers LLP 333 Market Street San Francisco, CA 94105 TRANSFER AGENT, FUND ACCOUNTANT AND FUND ADMINISTRATOR U.S. Bancorp Fund Services, LLC 615 East Michigan Street Milwaukee, WI 53202 CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 DISTRIBUTOR AssetMark Capital Corporation 2300 Contra Costa Blvd., Suite 425 Pleasant Hill, CA 94523 ITEM 2. CODE OF ETHICS. This item is not required at this time; applicable only for annual reports with periods ending on or after July 15, 2003. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. This item is not required at this time; applicable only for annual reports with periods ending on or after July 15, 2003. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. This item is not required at this time; applicable only for annual reports with periods ending on or after December 15, 2003. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. This item is not applicable to the Registrant. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. This item is not applicable to the Registrant, which is an open-end management investment company. ITEM 8. [RESERVED] ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS This item is not required at this time; applicable for the first reporting period ending after January 1, 2004. ITEM 10. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this Form N-CSR (the "Report"), the Registrant's President/Chief Executive Officer and Treasurer/Chief Financial Officer believe that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effectively designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the filing date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant's officers who are making certifications in the Report, as appropriate, to allow timely decisions regarding required disclosure. (b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant's last fiscal half-year that have materially affected or are reasonably likely to materially affect the Registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a) Any code of ethics or amendments thereto. This item is not required at this time; applicable only for annual reports with periods ending on or after July 15, 2003. (b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. (c) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: AssetMark Funds By: /s/Ronald D. Cordes ------------------------ Ronald D. Cordes President Date: 2-27-04 --------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Registrant: AssetMark Funds By: /s/ Ronald D. Cordes ------------------------------ Ronald D. Cordes President (Principal Executive Officer) AssetMark Funds Date: 2-27-04 --------------- By: /s/ Carrie E. Hansen --------------------- Carrie E. Hansen Treasurer (Principal Financial Officer) AssetMark Funds Date: 2-27-04 --------------- EX-99.CERT 3 amf-ex99cert302.txt CERTIFICATIONS I, Ronald D. Cordes, certify that: 1. I have reviewed this report on Form N-CSR of AssetMark 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) 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) 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 (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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: 2-27-04 --------------- By: /s/ Ronald D. Cordes ------------------------ Ronald D. Cordes President (Principal Executive Officer) CERTIFICATIONS I, Carrie E. Hansen, certify that: 1. I have reviewed this report on Form N-CSR of AssetMark 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) 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) 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 (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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: 2-27-04 --------------- By: /s/ Carrie E. Hansen ------------------------ Carrie E. Hansen Treasurer (Principal Financial Officer) EX-99.906 CERT 4 amf-ex99cert906.txt CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Ronald D. Cordes, President (Chief Executive Officer) of AssetMark Funds (the "Registrant"), hereby certify that: 1. The Registrant's periodic report on Form N-CSR for the period ended December 31, 2003 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as applicable; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: 2-27-04 --------------- By: /s/ Ronald D. Cordes ----------------------------- Name: Ronald D. Cordes Title: President (Chief Executive Officer) CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Carrie E. Hansen, Treasurer (Chief Financial Officer) of AssetMark Funds (the "Registrant"), hereby certify that: 1. The Registrant's periodic report on Form N-CSR for the period ended December 31, 2003 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as applicable; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: 2-27-04 --------------- By: /s/ Carrie E. Hansen ------------------------------ Name: Carrie E. Hansen Title: Treasurer (Chief Financial Officer) -----END PRIVACY-ENHANCED MESSAGE-----