UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number 811-58433

Marshall Funds, Inc.

(Exact name of registrant as specified in charter)

111 East Kilbourn Avenue

Milwaukee, WI 53202

(Address of principal executive offices) (Zip code)

John M. Blaser

M&I Investment Management Corp.

111 East Kilbourn Avenue

Milwaukee, WI 53202

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 236-3863

Date of fiscal year end: August 31

Date of reporting period: February 28, 2009

Item 1. Reports to Stockholders

[Insert semi-annual report here]

Table of Contents

Financial Information
Expense Example	2
Schedule of Investments	4
Marshall Large-Cap Value Fund	4
Marshall Large-Cap Growth Fund	6
Marshall Mid-Cap Value Fund	8
Marshall Mid-Cap Growth Fund	10
Marshall Small-Cap Growth Fund	12
Marshall International Stock Fund	14
Marshall Emerging Markets Equity Fund	18
Marshall Short-Term Income Fund	20
Marshall Short-Intermediate Bond Fund	23
Marshall Intermediate Tax-Free Fund	25
Marshall Government Income Fund	33
Marshall Corporate Income Fund	35
Marshall Aggregate Bond Fund	36
Marshall Core Plus Bond Fund	39
Marshall Government Money Market Fund	40
Marshall Tax-Free Money Market Fund	41
Marshall Prime Money Market Fund	47
Notes to Schedules of Investments	50
Statements of Assets and Liabilities	52
Statements of Operations	56
Statements of Changes in Net Assets	60
Financial Highlights	65
Notes to Financial Statements	72

Not FDIC Insured No Bank Guarantee May Lose Value

[THIS PAGE INTENTIONALLY LEFT BLANK]

1

Expense Example (Unaudited)

For the Six Months Ended February 28, 2009

As a shareholder of a Fund, you may incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six month period ended February 28, 2009 (9/1/08-2/28/09).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Advisor								Investor								Institutional
Fund	Beginning account value 9/1/08		Ending account value 2/28/09		Annualized Expense Ratio(1)		Expenses paid during period 9/1/08- 2/28/09(1)		Beginning account value 9/1/08		Ending account value 2/28/09		Annualized Expense Ratio(1)		Expenses paid during period 9/1/08- 2/28/09(1)		Beginning account value 9/1/08		Ending account value 2/28/09		Annualized Expense Ratio(1)		Expenses paid during period 9/1/08- 2/28/09(1)
Large-Cap Value Fund
Actual	$	1,000.00	$	633.40	1.32	%	$	5.35	$	1,000.00	$	633.40	1.32	%	$	5.35	$	1,000.00	$	634.80	1.07	%	$	4.34
Hypothetical (5% return before expenses)		1,000.00		1,018.44	1.32			6.62		1,000.00		1,018.44	1.32			6.62		1,000.00		1,019.69	1.07			5.36
Large-Cap Growth Fund
Actual		1,000.00		610.70	1.39			5.55		1,000.00		610.70	1.39			5.55		1,000.00		611.90	1.14			4.55
Hypothetical (5% return before expenses)		1,000.00		1,018.11	1.39			6.95		1,000.00		1,018.11	1.39			6.96		1,000.00		1,019.35	1.14			5.71
Mid-Cap Value Fund
Actual		1,000.00		567.50	1.38			5.38		1,000.00		567.50	1.38			5.38		1,000.00		567.60	1.13			4.41
Hypothetical (5% return before expenses)		1,000.00		1,018.14	1.38			6.93		1,000.00		1,018.14	1.38			6.92		1,000.00		1,019.37	1.13			5.68
Mid-Cap Growth Fund
Actual		1,000.00		606.60	1.34			5.34		1,000.00		606.60	1.34			5.34		1,000.00		607.00	1.09			4.35
Hypothetical (5% return before expenses)		1,000.00		1,018.35	1.34			6.71		1,000.00		1,018.35	1.34			6.71		1,000.00		1,019.59	1.09			5.46
Small-Cap Growth Fund
Actual		1,000.00		590.60	1.59			6.29		1,000.00		590.60	1.59			6.29		1,000.00		591.40	1.34			5.31
Hypothetical (5% return before expenses)		1,000.00		1,017.09	1.59			7.97		1,000.00		1,017.09	1.59			7.98		1,000.00		1,018.33	1.34			6.73

(See Notes which are an integral part of the Financial Statements)

2

Expense Example (Unaudited) (continued)

	Advisor									Investor									Institutional
Fund	Beginning account value 9/1/08		Ending account value 2/28/09		Annualized Expense Ratio(1)		Expenses paid during period 9/1/08- 2/28/09(1)			Beginning account value 9/1/08		Ending account value 2/28/09		Annualized Expense Ratio(1)		Expenses paid during period 9/1/08- 2/28/09(1)			Beginning account value 9/1/08		Ending account value 2/28/09		Annualized Expense Ratio(1)		Expenses paid during period 9/1/08- 2/28/09(1)
International Stock Fund
Actual	$	1,000.00	$	524.70	1.69	%	$	6.41		$	1,000.00	$	524.70	1.69	%	$	6.38		$	1,000.00	$	527.50	1.44	%	$	5.44
Hypothetical (5% return before expenses)		1,000.00		1,016.60	1.69			8.47			1,000.00		1,016.63	1.69			8.44			1,000.00		1,017.88	1.44			7.18
Emerging Markets Equity Fund
Actual		1,000.00		881.70	1.50			2.59	(2)		1,000.00		881.70	1.50			2.59	(2)		1,000.00		881.80	1.25			2.16	(2)
Hypothetical (5% return before expenses)		1,000.00		1,022.25	1.50			2.78	(2)		1,000.00		1,022.24	1.50			2.79	(2)		1,000.00		1,022.71	1.25			2.32	(2)
Short-Term Income Fund
Actual		1,000.00		969.40	0.60			2.94			1,000.00		969.40	0.60			2.94			1,000.00		969.50	0.35			1.71
Hypothetical (5% return before expenses)		1,000.00		1,022.02	0.60			3.01			1,000.00		1,022.01	0.60			3.02			1,000.00		1,023.26	0.35			1.76
Short-Intermediate Bond Fund
Actual		1,000.00		828.00	0.80			3.64			1,000.00		827.00	0.80			3.64			1,000.00		827.80	0.55			2.50
Hypothetical (5% return before expenses)		1,000.00		1,021.02	0.80			4.03			1,000.00		1,021.01	0.80			4.03			1,000.00		1,022.26	0.55			2.77
Intermediate Tax-Free Fund
Actual		—		—	—			—			1,000.00		1,007.10	0.55			2.73			—		—	—			—
Hypothetical (5% return before expenses)		—		—	—			—			1,000.00		1,022.28	0.55			2.75			—		—	—			—
Government Income Fund
Actual		1,000.00		987.00	0.80			3.95			1,000.00		987.00	0.80			3.95			1,000.00		989.30	0.55			2.72
Hypothetical (5% return before expenses)		1,000.00		1,021.03	0.80			4.02			1,000.00		1,021.02	0.80			4.02			1,000.00		1,022.27	0.55			2.76
Corporate Income Fund
Actual		1,000.00		1,007.90	0.80			1.48	(2)		1,000.00		1,007.90	0.80			1.48	(2)		1,000.00		1,008.40	0.55			1.01	(2)
Hypothetical (5% return before expenses)		1,000.00		1,023.53	0.80			1.49	(2)		1,000.00		1,023.52	0.80			1.49	(2)		1,000.00		1,023.99	0.55			1.02	(2)
Aggregate Bond Fund
Actual		1,000.00		909.20	0.80			3.80			1,000.00		909.20	0.80			3.80			1,000.00		910.30	0.55			2.61
Hypothetical (5% return before expenses)		1,000.00		1,021.02	0.80			4.02			1,000.00		1,021.02	0.80			4.02			1,000.00		1,022.26	0.55			2.77
Core Plus Bond Fund
Actual		—		—	—			—			1,000.00		1,006.40	0.80			1.48	(2)		1,000.00		1,007.20	0.55			1.01	(2)
Hypothetical (5% return before expenses)		—		—	—			—			1,000.00		1,023.53	0.80			1.49	(2)		1,000.00		1,023.99	0.55			1.02	(2)
Government Money Market Fund
Actual		—		—	—			—			1,000.00		1,005.00	0.48	(3)		2.37			1,000.00		1,006.20	0.23	(3)		1.12
Hypothetical (5% return before expenses)		—		—	—			—			1,000.00		1,022.64	0.48	(3)		2.39			1,000.00		1,023.88	0.23	(3)		1.13
Tax-Free Money Market Fund
Actual		—		—	—			—			1,000.00		1,009.60	0.48	(3)		2.40			1,000.00		1,010.80	0.23	(3)		1.17
Hypothetical (5% return before expenses)		—		—	—			—			1,000.00		1,022.61	0.48	(3)		2.42			1,000.00		1,023.84	0.23	(3)		1.17
Prime Money Market Fund
Actual		1,000.00		1,007.70	0.79	(3)		3.92			1,000.00		1,009.20	0.49	(3)		2.43			1,000.00		1,010.50	0.24	(3)		1.19
Hypothetical (5% return before expenses)		1,000.00		1,021.09	0.79	(3)		3.95			1,000.00		1,022.58	0.49	(3)		2.45			1,000.00		1,023.82	0.24	(3)		1.19

(1) Expenses are equal to the Funds’ annualized expense ratios for the period from September 1, 2008 through February 28, 2009, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

(2) The Funds commenced operations on 12/23/08. The Funds’ expense ratios are multiplied by 67/365 (to reflect the partial period).

(3) Participation fees for the Treasury’s Temporary Guarantee Program in the Government Money Market Fund, Tax-Free Money Market Fund and Prime Money Market Fund amounted to 0.03%, 0.03% and 0.04%, respectively.

(See Notes which are an integral part of the Financial Statements)

3

February 28, 2009 (Unaudited)

Schedule of Investments

Large-Cap Value Fund

Description	Shares	Value
Common Stocks — 94.1%
Consumer Discretionary — 3.9%
Apparel Retail — 1.0%
TJX Cos., Inc.	73,000	$    1,625,710
Computer & Electronics Retail — 0.3%
Best Buy Co., Inc.	16,380	472,072
Footwear — 1.3%
NIKE, Inc., Class B	43,500	1,806,554
Movies & Entertainment — 0.6%
Time Warner, Inc.	123,150	939,635
Restaurants — 0.7%
McDonald’s Corp.	21,940	1,146,365
Total Consumer Discretionary		5,990,336
Consumer Staples — 14.5%
Drug Retail — 1.1%
CVS Caremark Corp. (1)	65,090	1,675,417
Food Distributors — 0.7%
Sysco Corp.	52,880	1,136,920
Food Retail — 1.2%
Kroger Co.	89,800	1,856,166
Household Products — 4.9%
Colgate-Palmolive Co. (1)	47,300	2,846,514
Procter & Gamble Co. (1)	98,300	4,735,110
		7,581,624
Hypermarkets & Super Centers — 2.0%
Wal-Mart Stores, Inc. (1)	64,520	3,176,965
Packaged Foods & Meats — 0.7%
Kraft Foods, Inc., Class A (1)	46,200	1,052,436
Soft Drinks — 1.1%
Coca-Cola Co.	43,030	1,757,776
Tobacco — 2.8%
Altria Group, Inc. (1)	122,060	1,884,606
Philip Morris International, Inc. (1)	71,810	2,403,481
		4,288,087
Total Consumer Staples		22,525,391
Energy — 15.1%
Integrated Oil & Gas — 12.0%
Chevron Corp. (1)	106,850	6,486,863
ConocoPhillips	112,660	4,207,851
Exxon Mobil Corp. (1)	71,050	4,824,295
Hess Corp.	30,060	1,643,981
Marathon Oil Corp.	70,050	1,630,064
		18,793,054
Oil & Gas-Equipment and Services — 0.6%
Halliburton Co.	55,500	905,205
Oil & Gas-Exploration and Production — 2.0%
Apache Corp. (1)	26,330	1,555,840
Cimarex Energy Co.	35,560	698,754
Devon Energy Corp. (1)	22,500	982,575
		3,237,169
Oil & Gas-Refining and Marketing — 0.5%
Valero Energy Corp.	38,080	737,990
Total Energy		23,673,418

Description	Shares	Value
Common Stocks (continued)
Financials — 15.0%
Asset Management & Custody Banks — 1.7%
Ameriprise Financial, Inc.	45,210	$       720,647
Bank of New York Mellon Corp. (1)	85,490	1,895,313
		2,615,960
Diversified Banks — 2.4%
U.S. Bancorp	154,370	2,209,035
Wells Fargo & Co. (1)	121,440	1,469,424
		3,678,459
Investment Banking & Brokerage — 2.5%
Goldman Sachs Group, Inc.	15,305	1,393,979
Morgan Stanley (1)	89,140	1,741,796
The Charles Schwab Corp.	56,100	713,031
		3,848,806
Other Diversified Financial Services — 2.2%
JP Morgan Chase & Co. (1)	152,420	3,482,797
Property & Casualty Insurance — 5.1%
Chubb Corp. (1)	76,480	2,985,779
Travelers Co., Inc. (1)	109,770	3,968,185
W. R. Berkley Corp.	55,490	1,154,747
		8,108,711
Regional Banks — 0.6%
PNC Financial Services Group (1)	32,940	900,580
Specialized Finance — 0.5%
CME Group, Inc. (1)	3,870	705,888
Total Financials		23,341,201
Healthcare — 15.0%
Biotechnology — 2.8%
Amgen, Inc. (1)(2)	42,590	2,083,929
Gilead Sciences, Inc. (2)	49,600	2,222,080
		4,306,009
Healthcare Distributors — 1.4%
AmerisourceBergen Corp. (1)	70,670	2,244,479
Healthcare Equipment — 1.2%
Becton, Dickinson and Co.	30,880	1,911,163
Healthcare Services — 0.4%
Express Scripts, Inc. (1)(2)	13,240	665,972
Pharmaceuticals — 9.2%
Bristol-Myers Squibb Co. (1)	120,150	2,211,962
Eli Lilly & Co. (1)	61,300	1,800,994
Forest Laboratories, Inc. (2)	58,600	1,256,384
Johnson & Johnson (1)	121,330	6,066,499
Pfizer, Inc. (1)	231,300	2,847,303
		14,183,142
Total Healthcare		23,310,765
Industrials — 8.7%
Aerospace & Defense — 5.4%
General Dynamics Corp. (1)	30,500	1,336,510
Honeywell International, Inc.	25,850	693,556
L-3 Communications Holdings, Inc. (1)	22,550	1,525,508
Lockheed Martin Corp.	28,110	1,774,022
Northrop Grumman Corp.	40,150	1,500,004
United Technologies Corp.	37,100	1,514,793
		8,344,393
Electrical Components & Equipment — 1.1%
Emerson Electric Co. (1)	62,730	1,678,028

(See Notes which are an integral part of the Financial Statements)

4

Marshall Funds

Large-Cap Value Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Industrials (continued)
Environmental & Facilities Services — 1.4%
Waste Management, Inc. (1)	81,500	$    2,200,499
Industrial Machinery — 0.8%
Parker Hannifin Corp.	38,100	1,271,397
Total Industrials		13,494,317
Information Technology — 7.5%
Computer Hardware — 2.4%
Hewlett-Packard Co.	41,470	1,203,874
International Business Machines Corp.	27,890	2,566,716
		3,770,590
Data Processing & Outsourced Services — 1.7%
Affiliated Computer Services, Inc. (2)	32,570	1,518,739
Automatic Data Processing, Inc.	31,720	1,083,238
		2,601,977
Semiconductors — 0.4%
Xilinx, Inc.	33,510	592,457
Systems Software — 3.0%
CA, Inc. (1)	66,990	1,135,481
Oracle Corp. (2)	77,100	1,198,134
Symantec Corp. (1)(2)	169,430	2,343,217
		4,676,832
Total Information Technology		11,641,856
Materials — 1.8%
Industrial Gases — 0.8%
Air Products and Chemicals, Inc.	27,100	1,253,375
Metal & Glass Containers — 1.0%
Ball Corp.	39,040	1,572,922
Total Materials		2,826,297
Telecommunication Services — 7.7%
Integrated Telecommunication Services — 7.7%
AT&T, Inc.	246,730	5,864,772
Verizon Communications, Inc. (1)	212,490	6,062,340
Total Telecommunication Services		11,927,112
Utilities — 4.9%
Gas Utilities — 0.9%
Oneok, Inc.	65,500	1,463,270
Multi-Utilities — 4.0%
CenterPoint Energy, Inc. (1)	162,000	1,671,840
Dominion Resources, Inc.	122,300	3,691,014
Sempra Energy	18,000	748,260
		6,111,114
Total Utilities		7,574,384
Total Common Stocks (identified cost $188,480,476)		146,305,077
Exchange Traded Funds — 1.5%
iShares Barclays 7-10 Year Treasury Bond Fund	25,620	2,401,619
Total Exchange Traded Funds (identified cost $2,364,572)		2,401,619

Description	Contracts or Principal Amount	Value
Purchased Call Options — 0.3%
Financial Select Sector SPDR Fund, 6/20/2009 (2)	1,855	$       141,908
Mellon Financial Corp., 6/20/2009 (2)	400	222,000
U.S. Bancorp, 3/21/2009 (2)	834	95,910
Total Purchased Call Options (identified cost $594,263)		459,818
Purchased Put Options — 0.3%
International Business Machines Corp., 7/18/2009 (2)	186	158,100
Gilead Sciences, Inc., 5/16/2009 (2)	413	276,710
Total Purchased Put Options (identified cost $343,190)		434,810
Short-Term Investments — 42.6%
Collateral Pool Investment for Securities on Loan — 40.0%
(See Note 2 of the Financial Statements)		62,272,135
Repurchase Agreement — 2.6%
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009, to be repurchased at $4,061,258 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 8/23/2010, with a market value of $4,149,094 (at amortized cost)	$4,061,187	4,061,187
Total Short-Term Investments (identified cost $66,333,322)		66,333,322
Total Investments — 138.8% (identified cost $258,115,823)		215,934,646
Other Assets and Liabilities — (38.8)%		(60,398,103	)
Total Net Assets — 100.0%		$155,536,543

Portfolio Sector Allocations*
Sector	Fund
Consumer Discretionary	3.9%
Consumer Staples	14.5
Energy	15.1
Financials	15.0
Healthcare	15.0
Industrials	8.7
Information Technology	7.5
Materials	1.8
Telecommunication Services	7.7
Utilities	4.9
Exchange Traded Funds	1.5
Purchased Call Options	0.3
Purchased Put Options	0.3
Other Assets & Liabilities, Net	3.8
Total	100.0%

(See Notes which are an integral part of the Financial Statements)

5

February 28, 2009 (Unaudited)

Schedule of Investments

Large-Cap Growth Fund

Description	Shares	Value
Common Stocks — 96.0%
Consumer Discretionary — 10.0%
Apparel Retail — 0.9%
TJX Cos., Inc.	51,400	$    1,144,678
Cable & Satellite — 0.7%
Comcast Corp. (1)	67,500	881,550
Computer & Electronics Retail — 0.7%
Best Buy Co., Inc. (1)	30,000	864,600
Footwear — 1.1%
NIKE, Inc., Class B	33,100	1,374,643
General Merchandise Stores — 1.9%
Big Lots, Inc. (1)(2)	78,900	1,223,739
Target Corp.	40,000	1,132,400
		2,356,139
Home Improvement Retail — 0.6%
Lowe’s Cos., Inc. (1)	45,000	712,800
Restaurants — 3.1%
McDonald’s Corp.	50,000	2,612,500
Yum! Brands, Inc.	49,500	1,300,860
		3,913,360
Specialty Stores — 1.0%
Staples, Inc. (1)	75,000	1,196,250
Total Consumer Discretionary		12,444,020
Consumer Staples — 17.9%
Drug Retail — 1.8%
CVS Caremark Corp.	85,900	2,211,066
Food Distributors — 0.8%
Sysco Corp.	46,800	1,006,200
Household Products — 3.3%
Colgate-Palmolive Co. (1)	23,800	1,432,284
Procter & Gamble Co. (1)	55,000	2,649,350
		4,081,634
Hypermarkets & Super Centers — 3.6%
Costco Wholesale Corp. (1)	20,000	846,800
Wal-Mart Stores, Inc. (1)	74,600	3,673,304
		4,520,104
Soft Drinks — 4.4%
Coca-Cola Co. (1)	86,900	3,549,865
PepsiCo, Inc.	42,300	2,036,322
		5,586,187
Tobacco — 4.0%
Altria Group, Inc. (1)	113,900	1,758,616
Philip Morris International, Inc. (1)	94,900	3,176,303
		4,934,919
Total Consumer Staples		22,340,110
Energy — 8.3%
Coal & Consumable Fuels — 0.5%
Consol Energy, Inc.	22,500	613,125
Integrated Oil & Gas — 1.7%
Exxon Mobil Corp. (1)	17,000	1,154,300
Hess Corp.	17,500	957,075
		2,111,375
Oil & Gas-Drilling — 0.7%
Transocean, Ltd. (1)(2)	15,000	896,550

Description	Shares	Value
Common Stocks (continued)
Energy (continued)
Oil & Gas-Equipment and Services — 1.6%
Halliburton Co.	60,000	$       978,600
National Oilwell Varco, Inc. (2)	40,000	1,069,200
		2,047,800
Oil & Gas-Exploration and Production — 3.8%
Anadarko Petroleum Corp.	30,000	1,048,500
Devon Energy Corp.	12,500	545,875
Plains Exploration & Production Co. (2)	50,000	957,000
Southwestern Energy Co. (2)	35,000	1,006,950
XTO Energy, Inc.	35,000	1,108,100
		4,666,425
Total Energy		10,335,275
Financials — 4.1%
Asset Management & Custody Banks — 1.0%
Northern Trust Corp.	10,500	583,275
State Street Corp. (1)	28,500	720,195
		1,303,470
Investment Banking & Brokerage — 1.3%
The Charles Schwab Corp. (1)	120,000	1,525,200
Life & Health Insurance — 0.7%
Aflac, Inc. (1)	55,000	921,800
Multi-Line Insurance — 0.5%
Assurant, Inc.	30,000	612,000
Other Diversified Financial Services — 0.6%
JP Morgan Chase & Co. (1)	30,000	685,500
Total Financials		5,047,970
Healthcare — 14.3%
Biotechnology — 6.0%
Celgene Corp. (1)(2)	35,300	1,578,969
Genentech, Inc. (2)	26,000	2,224,300
Genzyme Corp. (1)(2)	27,500	1,675,575
Gilea Sciences, Inc. (1)(2)	44,900	2,011,520
		7,490,364
Healthcare Equipment — 1.4%
Baxter International, Inc.	33,600	1,710,576
Healthcare Services — 1.2%
Medco Health Solutions, Inc. (1)(2)	35,800	1,452,764
Healthcare Technology — 0.4%
Cerner Corp. (1)(2)	15,000	549,000
Life Sciences Tools & Services — 1.5%
Thermo Fisher Scientific, Inc. (1)(2)	52,800	1,914,528
Pharmaceuticals — 3.8%
Abbott Laboratories	50,000	2,367,000
Allergan, Inc. (1)	23,900	925,886
Bristol-Myers Squibb Co. (1)	45,400	835,814
Johnson & Johnson (1)	11,700	585,000
		4,713,700
Total Healthcare		17,830,932
Industrials — 9.3%
Aerospace & Defense — 3.9%
Lockheed Martin Corp.	16,000	1,009,760
Raytheon Co.	26,500	1,059,205

(See Notes which are an integral part of the Financial Statements)

6

Marshall Funds

Large-Cap Growth Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Industrials (continued)
Aerospace & Defense (continued)
Rockwell Collins, Inc. (1)	36,500	$    1,138,800
United Technologies Corp.	37,100	1,514,793
		4,722,558
Air Freight & Logistics — 0.4%
United Parcel Service, Inc.	12,900	531,222
Construction & Farm Machinery and Heavy Trucks — 1.3%
Caterpillar, Inc. (1)	30,800	757,988
Deere & Co. (1)	30,000	824,700
		1,582,688
Electrical Components & Equipment — 0.9%
Emerson Electric Co.	42,950	1,148,913
Environmental & Facilities Services — 0.5%
Stericycle, Inc. (2)	14,000	671,720
Industrial Conglomerates — 1.1%
3M Co.	30,400	1,381,984
Railroads — 1.2%
Burlington Northern Santa Fe Corp.	18,800	1,104,876
CSX Corp.	17,500	431,900
		1,536,776
Total Industrials		11,575,861
Information Technology — 27.8%
Application Software — 3.4%
Adobe Systems, Inc. (2)	55,000	918,500
AutoDesk, Inc. (2)	75,000	951,750
FactSet Research Systems, Inc. (1)	30,000	1,156,200
Salesforce.com, Inc. (1)(2)	45,000	1,260,000
		4,286,450
Communications Equipment — 5.5%
Cisco Systems, Inc. (1)(2)	288,100	4,197,617
QUALCOMM, Inc.	80,000	2,674,400
		6,872,017
Computer Hardware — 5.7%
Apple, Inc. (1)(2)	20,000	1,786,200
Hewlett-Packard Co.	106,700	3,097,501
International Business Machines Corp. (1)	24,500	2,254,735
		7,138,436
Data Processing & Outsourced Services — 0.9%
Visa, Inc. (1)	20,000	1,134,200
Electronic Equipment & Instruments — 0.7%
FLIR Systems, Inc. (1)(2)	45,000	918,450
Internet Software & Services — 2.3%
Google, Inc., Class A (1)(2)	6,000	2,027,940
Yahoo!, Inc. (1)(2)	61,500	813,645
		2,841,585
Semiconductors — 3.2%
Intel Corp. (1)	210,000	2,675,400
Microchip Technology, Inc. (1)	67,500	1,266,975
		3,942,375

Description	Shares or Principal Amount	Value
Common Stocks (continued)
Information Technology (continued)
Systems Software — 6.1%
Microsoft Corp. (1)	300,000	$    4,845,000
Oracle Corp. (2)	169,850	2,639,469
		7,484,469
Total Information Technology		34,617,982
Materials — 3.5%
Fertilizers & Agricultural Chemicals — 2.2%
Monsanto Co. (1)	36,700	2,799,109
Industrial Gases — 1.3%
Praxair, Inc.	27,500	1,560,625
Total Materials		4,359,734
Telecommunication Services — 0.8%
Integrated Telecommunication Services — 0.8%
AT&T, Inc.	41,000	974,570
Total Common Stocks (identified cost $145,922,801)		119,526,454
Short-Term Investments — 36.6%
Collateral Pool Investment for Securities on Loan — 33.6%
(See Note 2 of the Financial Statements)		41,835,123
Repurchase Agreement — 3.0%
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009, to be repurchased at $3,680,021 on 3/2/2009, collateralized by U.S. Government Agency Obligations with various maturities to 4/1/2056, with a market value of $3,835,079 (at amortized cost)	$3,679,956	3,679,956
Total Short-Term Investments (identified cost $45,515,079)		45,515,079
Total Investments — 132.6% (identified cost $191,437,880)		165,041,533
Other Assets and Liabilities — (32.6)%		(40,555,167	)
Total Net Assets — 100.0%		$124,486,366

(See Notes which are an integral part of the Financial Statements)

7

February 28, 2009 (Unaudited)

Schedule of Investments

Large-Cap Growth Fund (continued)

Portfolio Sector Allocations*
Sector	Fund
Consumer Discretionary	10.0%
Consumer Staples	17.9
Energy	8.3
Financials	4.1
Healthcare	14.3
Industrials	9.3
Information Technology	27.8
Materials	3.5
Telecommunication Services	0.8
Other Assets & Liabilities, Net	4.0
Total	100.0%

Mid-Cap Value Fund

Description	Shares	Value
Common Stocks — 96.4%
Consumer Discretionary — 18.6%
Advertising — 1.1%
Interpublic Group of Cos., Inc. (1)(2)	444,460	$    1,693,392
Apparel Retail — 1.1%
Gap, Inc. (1)	160,200	1,728,558
Auto Parts & Equipment — 1.0%
BorgWarner, Inc. (1)	90,700	1,564,575
Cable & Satellite — 3.1%
Liberty Global, Inc. (1)(2)	134,600	1,651,542
Liberty Media Corp. — Entertainment (2)	180,900	3,133,188
		4,784,730
Computer & Electronics Retail — 2.1%
Best Buy Co., Inc. (1)	113,600	3,273,952
Department Stores — 2.3%
Kohl’s Corp. (1)(2)	98,300	3,454,262
Homebuilding — 1.5%
Toll Brothers, Inc. (1)(2)	139,400	2,209,490
Household Appliances — 0.8%
Whirlpool Corp.	54,500	1,211,535
Internet Retail — 1.3%
Expedia, Inc. (1)(2)	257,500	2,052,275
Restaurants — 2.1%
Yum! Brands, Inc. (1)	119,000	3,127,320
Specialty Stores — 2.2%
Staples, Inc. (1)	207,200	3,304,840
Total Consumer Discretionary		28,404,929
Consumer Staples — 8.3%
Food Retail — 3.4%
Kroger Co.	107,500	2,222,025
Safeway, Inc. (1)	159,600	2,952,600
		5,174,625
Packaged Foods & Meats — 1.6%
Tyson Foods, Inc., Class A	293,600	2,475,048

Description	Shares	Value
Common Stocks (continued)
Consumer Staples (continued)
Soft Drinks — 0.5%
Dr. Pepper Snapple Group, Inc. (2)	55,400	$       778,370
Tobacco — 2.8%
Lorillard, Inc. (1)	72,400	4,231,056
Total Consumer Staples		12,659,099
Energy — 4.0%
Oil & Gas-Drilling — 0.8%
Helmerich & Payne, Inc.	53,900	1,275,274
Oil & Gas-Equipment & Services — 1.1%
BJ Services Co.	164,500	1,590,715
Oil & Gas-Exploration & Production — 2.1%
Noble Energy, Inc. (1)	71,300	3,247,002
Total Energy		6,112,991
Financials — 21.4%
Asset Management & Custody Banks — 7.0%
Affiliated Managers Group, Inc. (1)(2)	86,700	3,119,466
Ameriprise Financial, Inc.	158,900	2,532,866
Invesco Ltd. (1)	256,200	2,928,366
State Street Corp. (1)	84,700	2,140,369
		10,721,067
Diversified Banks — 0.5%
Comerica, Inc.	51,000	765,510
Life & Health Insurance — 1.0%
Principal Financial Group, Inc. (1)	133,900	1,069,861
StanCorp Financial Group, Inc. (1)	27,500	494,725
		1,564,586
Multi-Line Insurance — 1.1%
Assurant, Inc.	84,500	1,723,800
Property & Casualty Insurance — 4.3%
ACE Ltd.	85,300	3,114,303
Hanover Insurance Group, Inc.	100,000	3,517,000
		6,631,303
Regional Banks — 3.7%
Associated Banc-Corp. (1)	119,600	1,729,416
City National Corp. (1)	57,150	1,833,372
First Horizon National Corp. (1)	220,548	2,022,421
		5,585,209
Reinsurance — 3.8%
PartnerRe Ltd.	55,200	3,416,880
Reinsurance Group of America, Inc. (1)	87,100	2,369,120
		5,786,000
Total Financials		32,777,475
Healthcare — 9.6%
Healthcare Distributors — 2.5%
AmerisourceBergen Corp.	119,600	3,798,496
Healthcare Services — 2.3%
DaVita, Inc. (1)(2)	73,500	3,448,620
Healthcare Supplies — 1.2%
DENTSPLY International, Inc.	82,700	1,912,024
Life Sciences Tools & Services — 2.3%
Thermo Fisher Scientific, Inc. (1)(2)	94,900	3,441,074

(See Notes which are an integral part of the Financial Statements)

8

Marshall Funds

Mid-Cap Value Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Healthcare (continued)
Managed Healthcare — 1.3%
CIGNA Corp. (1)	128,800	$    2,029,888
Total Healthcare		14,630,102
Industrials — 8.5%
Aerospace & Defense — 0.6%
Alliant Techsystems, Inc. (1)(2)	12,400	876,184
Airlines — 0.7%
Continental Airlines, Inc. (1)(2)	109,300	1,095,186
Diversified Support Services — 1.4%
Cintas Corp. (1)	104,200	2,114,218
Environmental & Facilities Services — 1.4%
Republic Services, Inc. (1)	102,500	2,039,750
Human Resource & Employment Services — 2.0%
Manpower, Inc. (1)	109,900	3,064,012
Industrial Machinery — 1.3%
Eaton Corp. (1)	55,800	2,017,170
Trucking — 1.1%
Con-way, Inc. (1)	114,700	1,733,117
Total Industrials		12,939,637
Information Technology — 9.1%
Application Software — 1.2%
Synopsys, Inc. (1)(2)	100,700	1,876,041
Office Electronics — 1.2%
Xerox Corp. (1)	341,700	1,770,006
Semiconductors — 2.2%
Altera Corp. (1)	156,000	2,391,480
Intersil Corp.	94,800	958,428
		3,349,908
Systems Software — 1.0%
Symantec Corp. (1)(2)	112,500	1,555,875
Technology Distributors — 3.5%
Arrow Electronics, Inc. (1)(2)	166,300	2,765,569
Ingram Micro, Inc. (1)(2)	244,000	2,657,160
		5,422,729
Total Information Technology		13,974,559
Materials — 6.0%
Diversified Chemicals — 1.6%
PPG Industries, Inc. (1)	75,830	2,355,280
Paper Packaging — 1.3%
Sealed Air Corp.	176,100	1,965,276
Paper Products — 1.1%
MeadWestvaco Corp. (1)	186,700	1,743,778
Specialty Chemicals — 1.0%
Cytec Industries, Inc.	102,200	1,573,880
Steel — 1.0%
Nucor Corp.	45,000	1,514,250
Total Materials		9,152,464
Telecommunication Services — 2.9%
Integrated Telecommunication Services — 2.9%
Embarq Corp. (1)	126,100	4,409,717

Description	Shares or Principal Amount	Value
Common Stocks (continued)
Utilities — 8.0%
Electric Utilities — 2.9%
Edison International	69,300	$     1,886,346
Entergy Corp.	37,000	2,493,430
		4,379,776
Gas Utilities — 1.9%
Equitable Resources, Inc. (1)	96,400	2,964,300
Multi-Utilities — 3.2%
CMS Energy Corp. (1)	263,300	2,912,098
Sempra Energy	47,800	1,987,046
		4,899,144
Total Utilities		12,243,220
Total Common Stocks (identified cost $229,018,687)		147,304,193
Short-Term Investments — 42.8%
Collateral Pool Investment for Securities on Loan — 39.2%
(See Note 2 of the Financial Statements)		59,908,697
Repurchase Agreement — 3.6%
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009, to be repurchased at $5,521,665 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 8/23/2010, with a market value of $5,639,187 (at amortized cost)	$5,521,569	5,521,569
Total Short-Term Investments (identified cost $65,430,266)		65,430,266
Total Investments — 139.2% (identified cost $294,448,953)		212,734,459
Other Assets and Liabilities — (39.2)%		(59,941,891	)
Total Net Assets — 100.0%		$152,792,568

Portfolio Sector Allocations*
Sector	Fund
Consumer Discretionary	18.6%
Consumer Staples	8.3
Energy	4.0
Financials	21.4
Healthcare	9.6
Industrials	8.5
Information Technology	9.1
Materials	6.0
Telecommunication Services	2.9
Utilities	8.0
Other Assets & Liabilities, Net	3.6
Total	100.0%

(See Notes which are an integral part of the Financial Statements)

9

February 28, 2009 (Unaudited)

Schedule of Investments

Mid-Cap Growth Fund

Description	Shares	Value
Common Stocks — 95.6%
Consumer Discretionary — 19.0%
Apparel Retail — 1.3%
Ross Stores, Inc.	62,000	$    1,830,240
Automotive Retail — 2.1%
AutoZone, Inc. (1)(2)	8,800	1,251,624
O’Reilly Automotive, Inc. (1)(2)	52,200	1,741,392
		2,993,016
Cable & Satellite — 1.6%
Liberty Media Corp. — Entertainment (2)	133,200	2,307,024
Casinos & Gaming — 0.9%
Scientific Games Corp., Class A (2)	116,700	1,234,686
Computer & Electronics Retail — 1.5%
GameStop Corp. (1)(2)	83,300	2,242,436
Department Stores — 0.9%
Kohl’s Corp. (1)(2)	35,200	1,236,928
Distributors — 0.6%
LKQ Corp. (2)	63,400	855,900
Education Services — 3.6%
Apollo Group, Inc., Class A (1)(2)	19,300	1,399,250
DeVry, Inc. (1)	32,800	1,703,960
ITT Educational Services, Inc. (1)(2)	18,000	2,043,000
		5,146,210
General Merchandise Stores — 1.6%
Dollar Tree, Inc. (1)(2)	59,700	2,317,554
Restaurants — 1.2%
Panera Bread Co., Class A(1)(2)	39,800	1,752,792
Specialized Consumer Services — 3.7%
Coinstar, Inc. (2)	103,200	2,697,648
H&R Block, Inc. (1)	56,300	1,075,330
Hillenbrand, Inc.	90,700	1,521,039
		5,294,017
Total Consumer Discretionary		27,210,803
Consumer Staples — 7.2%
Drug Retail — 0.9%
CVS Caremark Corp. (1)	52,100	1,341,054
Food Retail — 0.6%
Kroger Co.	43,400	897,078
Hypermarkets & Super Centers — 0.7%
BJ’s Wholesale Club, Inc. (2)	35,300	1,054,764
Packaged Foods & Meats — 3.4%
Flowers Foods, Inc. (1)	53,500	1,193,585
General Mills, Inc. (1)	33,400	1,752,832
Ralcorp Holdings, Inc. (1)(2)	28,900	1,751,340
		4,697,757
Personal Products — 1.6%
Chattem, Inc. (1)(2)	36,000	2,283,480
Total Consumer Staples		10,274,133
Energy — 4.4%
Oil & Gas-Equipment and Services — 0.9%
IHS Inc., Class A (2)	31,800	1,295,214
Oil & Gas-Exploration and Production — 3.5%
Atlas America, Inc. (1)	379,650	3,819,279

Description	Shares	Value
Common Stocks (continued)
Energy (continued)
Oil & Gas-Exploration and Production (continued)
Comstock Resources, Inc. (1)(2)	37,500	$    1,141,125
		4,960,404
Total Energy		6,255,618
Financials — 7.9%
Mortgage REIT’s — 5.6%
Annaly Capital Management, Inc. (1)	278,900	3,876,710
Capstead Mortgage Corp.	132,700	1,329,654
MFA Financial, Inc.	475,300	2,728,222
		7,934,586
Multi-Line Insurance — 0.7%
HCC Insurance Holdings, Inc. (1)	45,900	1,007,505
Office REIT’s — 0.9%
Digital Realty Trust, Inc. (1)	44,600	1,333,094
Property & Casualty Insurance — 0.7%
Aspen Insurance Holdings Ltd. (1)	49,000	1,067,710
Total Financials		11,342,895
Healthcare — 18.4%
Biotechnology — 2.5%
Alexion Pharmaceuticals, Inc. (1)(2)	48,900	1,672,380
Celgene Corp. (2)	27,400	1,225,602
United Therapeutics Corp. (1)(2)	10,300	691,233
		3,589,215
Healthcare Equipment — 5.8%
Baxter International, Inc.	32,500	1,654,575
Becton, Dickinson and Co.	22,300	1,380,147
Edwards Lifesciences Corp. (2)	22,000	1,223,420
NuVasive, Inc. (1)(2)	51,600	1,462,860
ResMed, Inc. (2)	31,400	1,158,032
St. Jude Medical, Inc. (2)	42,200	1,399,352
		8,278,386
Healthcare Services — 3.0%
Amedisys, Inc. (1)(2)	44,900	1,468,679
Express Scripts, Inc. (1)(2)	20,300	1,021,090
Omnicare, Inc.	68,700	1,781,391
		4,271,160
Healthcare Supplies — 1.7%
Haemonetics Corp. (1)(2)	16,900	902,122
Inverness Medical Innovations, Inc. (1)(2)	68,500	1,539,195
		2,441,317
Life Sciences Tools & Services — 2.7%
Illumina, Inc. (1)(2)	30,600	958,698
QIAGEN N.V. (1)(2)	96,100	1,539,522
Thermo Fisher Scientific, Inc. (2)	36,400	1,319,864
		3,818,084
Pharmaceuticals — 2.7%
Mylan, Inc. (1)(2)	138,600	1,722,798
Teva Pharmaceutical Industries, Ltd. ADR (1)	47,700	2,126,466
		3,849,264
Total Healthcare		26,247,426
Industrials — 8.9%
Construction & Engineering — 1.5%
Quanta Services, Inc. (1)(2)	56,800	999,680

(See Notes which are an integral part of the Financial Statements)

10

Marshall Funds

Mid-Cap Growth Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Industrials (continued)
Construction & Engineering (continued)
Shaw Group, Inc. (1)(2)	47,300	$    1,103,982
		2,103,662
Diversified Support Services — 0.7%
Copart, Inc. (1)(2)	39,000	1,053,780
Electrical Components & Equipment — 0.7%
AMETEK, Inc.	37,700	997,542
Environmental & Facilities Services — 2.2%
Stericycle, Inc. (1)(2)	41,700	2,000,766
Tetra Tech, Inc. (1)(2)	53,000	1,187,200
		3,187,966
Human Resource & Employment Services — 1.0%
Watson Wyatt Worldwide, Inc. (1)	28,600	1,404,546
Industrial Machinery — 0.8%
SPX Corp.	25,900	1,146,852
Office Services & Supplies — 0.7%
Pitney Bowes, Inc.	53,800	1,037,802
Research and Consulting Services — 1.3%
Dun & Bradstreet Corp.	24,200	1,790,074
Total Industrials		12,722,224
Information Technology — 18.2%
Application Software — 2.4%
Nuance Communications, Inc. (1)(2)	265,400	2,351,444
Solera Holdings, Inc. (1)(2)	50,300	1,045,737
		3,397,181
Communications Equipment — 0.8%
Harris Corp.	30,700	1,144,496
Consulting & Other Services — 0.8%
ManTech International Corp., Class A (1)(2)	22,000	1,147,740
Data Processing & Outsourced Services — 4.9%
Affiliated Computer Services, Inc. (1)(2)	34,500	1,608,735
Fiserv, Inc. (2)	36,400	1,187,368
Global Payments, Inc. (1)	33,300	1,021,644
Hewitt Associates, Inc. (1)(2)	45,400	1,339,300
Lender Processing Services, Inc. (1)	72,600	1,901,394
		7,058,441
Electronic Components — 0.7%
Amphenol Corp., Class A	38,100	968,502
Electronic Equipment & Instruments — 1.4%
Cogent, Inc. (1)(2)	80,500	837,200
FLIR Systems, Inc. (1)(2)	57,600	1,175,616
		2,012,816
Home Entertainment Software — 0.9%
Activision Blizzard, Inc. (2)	126,300	1,266,789
Internet Software & Services — 1.1%
Equinix, Inc. (1)(2)	33,200	1,540,812
Systems Software — 5.2%
Check Point Software Technologies (2)	56,900	1,250,093
Macrovision Solutions Corp. (2)	107,600	1,692,548
McAfee, Inc. (2)	54,600	1,526,070

Description	Shares or Principal Amount	Value
Common Stocks (continued)
Information Technology (continued)
Systems Software (continued)
Sybase, Inc. (1)(2)	64,500	$    1,753,110
Symantec Corp. (1)(2)	90,400	1,250,232
		7,472,053
Total Information Technology		26,008,830
Materials — 6.3%
Gold — 1.8%
Agnico-Eagle Mines Ltd. (1)	32,200	1,605,492
Eldorado Gold Corp. (1)(2)	118,400	976,800
		2,582,292
Industrial Gases — 0.7%
Praxair, Inc.	17,400	987,450
Precious Metals & Minerals — 1.7%
Pan American Silver Corp. (1)(2)	79,200	1,140,480
Silver Wheaton Corp. (1)(2)	202,600	1,355,394
		2,495,874
Specialty Chemicals — 2.1%
Ecolab, Inc. (1)	40,100	1,274,378
Sensient Technologies Corp. (1)	81,000	1,636,200
		2,910,578
Total Materials		8,976,194
Telecommunication Services — 5.3%
Wireless Telecommunication Services — 5.3%
American Tower Corp., Class A (1)(2)	69,400	2,020,928
Crown Castle International Corp. (1)(2)	68,500	1,201,490
Leap Wireless International, Inc. (1)(2)	78,400	2,125,424
MetroPCS Communications, Inc. (1)(2)	157,600	2,285,200
Total Telecommunication Services		7,633,042
Total Common Stocks (identified cost $159,102,264)		136,671,165
Short-Term Investments — 41.4%
Collateral Pool Investment for Securities on Loan — 39.3%
(See Note 2 of the Financial Statements)		56,118,972
Repurchase Agreement — 2.1%
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009, to be repurchased at $3,039,499 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 8/23/2010, with a market value of $3,106,555 (at amortized cost)	$3,039,446	3,039,446
Total Short-Term Investments (identified cost $59,158,418)		59,158,418
Total Investments — 137.0% (identified cost $218,260,682)		195,829,583
Other Assets and Liabilities — (37.0)%		(52,904,631	)
Total Net Assets — 100.0%		$142,924,952

(See Notes which are an integral part of the Financial Statements)

11

February 28, 2009 (Unaudited)

Schedule of Investments

Mid-Cap Growth Fund (continued)

Portfolio Sector Allocations*
Sector	Fund
Consumer Discretionary	19.0%
Consumer Staples	7.2
Energy	4.4
Financials	7.9
Healthcare	18.4
Industrials	8.9
Information Technology	18.2
Materials	6.3
Telecommunication Services	5.3
Other Assets & Liabilities, Net	4.4
Total	100.0%

Small-Cap Growth Fund

Description	Shares	Value
Common Stocks — 98.1%
Consumer Discretionary — 14.1%
Automotive Retail — 0.9%
Monro Muffler Brake, Inc. (1)	65,200	$    1,534,156
Casinos & Gaming — 0.9%
Scientific Games Corp., Class A (1)(2)	140,900	1,490,722
Distributors — 0.6%
LKQ Corp. (1)(2)	75,600	1,020,600
General Merchandise Stores — 1.7%
Dollar Tree, Inc. (1)(2)	72,300	2,806,686
Homefurnishing Retail — 1.3%
Aaron Rents, Inc.	86,100	2,068,983
Internet Retail — 1.4%
PetMed Express, Inc. (1)(2)	162,000	2,232,360
Movies & Entertainment — 2.7%
Imax Corp. (1)(2)	1,120,800	4,516,824
Restaurants — 1.1%
Panera Bread Co., Class A (1)(2)	41,600	1,832,064
Specialized Consumer Services — 3.0%
Coinstar, Inc. (1)(2)	131,600	3,440,024
Hillenbrand, Inc. (1)	88,000	1,475,760
		4,915,784
Specialty Stores — 0.5%
Ulta Salon, Cosmetics & Fragrance, Inc. (1)(2)	144,700	810,320
Total Consumer Discretionary		23,228,499
Consumer Staples — 6.0%
Food Distributors — 0.5%
Nash Finch Co.	23,397	815,151
Hypermarkets & Super Centers — 0.8%
BJ’s Wholesale Club, Inc. (2)	42,300	1,263,924
Packaged Foods & Meats — 3.0%
Green Mountain Coffee Roasters, Inc. (2)	38,900	1,452,915

Description	Shares	Value
Common Stocks (continued)
Consumer Staples (continued)
Packaged Foods & Meats (continued)
Overhill Farms, Inc. (2)	456,000	$    1,573,200
Ralcorp Holdings, Inc. (1)(2)	33,320	2,019,192
		5,045,307
Personal Products — 1.7%
Chattem, Inc. (1)(2)	43,000	2,727,490
Total Consumer Staples		9,851,872
Energy — 4.6%
Oil & Gas-Exploration and Production — 4.6%
Atlas America, Inc.	453,800	4,565,228
BPZ Resources, Inc. (1)(2)	523,600	1,801,184
Rosetta Resources, Inc. (2)	248,000	1,262,320
Total Energy		7,628,732
Financials — 9.3%
Asset Management & Custody Banks — 0.7%
Riskmetrics Group, Inc. (1)(2)	107,500	1,181,425
Consumer Finance — 1.4%
EZCORP, Inc., Class A (2)	231,700	2,381,876
Mortgage REIT’s — 7.2%
American Capital Agency Corp. (1)	251,200	4,044,320
Anworth Mortgage Asset Corp.	374,430	2,257,813
Capstead Mortgage Corp.	205,630	2,060,413
MFA Financial, Inc.	589,800	3,385,452
		11,747,998
Total Financials		15,311,299
Healthcare — 25.2%
Biotechnology — 4.1%
Alexion Pharmaceuticals, Inc. (1)(2)	58,300	1,993,860
Crucell N.V. ADR (1)(2)	119,300	2,226,138
Myriad Genetics, Inc. (1)(2)	20,900	1,647,965
United Therapeutics Corp. (1)(2)	12,400	832,164
		6,700,127
Healthcare Equipment — 4.9%
Edwards Lifesciences Corp. (1)(2)	26,000	1,445,860
Masimo Corp. (1)(2)	57,600	1,439,424
NuVasive, Inc. (1)(2)	62,800	1,780,380
ResMed, Inc. (2)	37,200	1,371,936
Synovis Life Technologies, Inc. (2)	96,400	1,203,072
Thoratec Corp. (1)(2)	36,300	829,092
		8,069,764
Healthcare Facilities — 1.9%
Hanger Orthopedic Group, Inc. (2)	128,900	1,714,370
Sun Healthcare Group, Inc. (2)	153,300	1,370,502
		3,084,872
Healthcare Services — 5.6%
Alliance HealthCare Services, Inc. (2)	195,100	1,599,820
Amedisys, Inc. (1)(2)	53,800	1,759,798
Bio-Reference Laboratories, Inc. (1)(2)	87,600	2,033,196
CardioNet, Inc. (2)	93,700	2,342,500
Genoptix, Inc. (1)(2)	57,900	1,755,528
		9,490,842

(See Notes which are an integral part of the Financial Statements)

12

Marshall Funds

Small-Cap Growth Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Healthcare (continued)
Healthcare Supplies — 2.9%
Haemonetics Corp. (1)(2)	30,600	$    1,633,428
Inverness Medical Innovations, Inc. (1)(2)	81,900	1,840,293
Neogen Corp. (1)(2)	59,550	1,265,438
		4,739,159
Healthcare Technology — 1.6%
athenahealth, Inc. (1)(2)	38,800	988,624
MedAssets, Inc. (1)(2)	106,500	1,574,070
		2,562,694
Life Sciences Tools & Services — 1.9%
ICON PLC ADR (1)(2)	66,300	1,360,476
Luminex Corp. (1)(2)	106,200	1,762,920
		3,123,396
Pharmaceuticals — 2.3%
Mylan, Inc. (1)(2)	201,900	2,509,616
Questcor Pharmaceuticals, Inc. (1)(2)	277,200	1,347,192
		3,856,808
Total Healthcare		41,627,662
Industrials — 9.2%
Aerospace & Defense — 2.6%
Axsys Technologies, Inc. (2)	66,200	2,198,502
DynCorp International, Inc., Class A (2)	176,300	2,149,097
		4,347,599
Construction & Engineering — 1.0%
Aecom Technology Corp. (2)	65,300	1,601,809
Environmental & Facilities Services — 1.8%
Clean Harbors, Inc. (1)(2)	31,600	1,535,128
Tetra Tech, Inc. (1)(2)	64,100	1,435,840
		2,970,968
Human Resource & Employment Services — 1.0%
Watson Wyatt Worldwide, Inc. (1)	34,400	1,689,384
Industrial Machinery — 0.4%
Middleby Corp. (1)(2)	30,100	654,675
Office Services & Supplies — 0.8%
Sykes Enterprises, Inc. (1)(2)	84,300	1,345,428
Research and Consulting Services — 0.6%
Navigant Consulting, Inc. (1)(2)	70,400	913,088
Security & Alarm Services — 1.0%
GeoEye, Inc. (2)	73,600	1,663,360
Total Industrials		15,186,311
Information Technology — 23.1%
Application Software — 6.7%
Blackboard, Inc. (2)	68,400	1,876,896
Ebix, Inc. (1)(2)	157,100	3,283,390
Longtop Financial Technologies Ltd. ADR (2)	114,600	1,738,482
Nuance Communications, Inc. (1)(2)	314,400	2,785,584
Solera Holdings, Inc. (1)(2)	60,200	1,251,558
		10,935,910

Description	Shares	Value
Common Stocks (continued)
Information Technology (continued)
Communications Equipment — 3.9%
DG FastChannel, Inc. (1)(2)	201,300	$    3,126,189
Neutral Tandem, Inc. (2)	91,600	1,827,420
NICE Systems Ltd. ADR (2)	73,200	1,544,520
		6,498,129
Consulting & Other Services — 0.8%
ManTech International Corp., Class A (2)	26,200	1,366,854
Data Processing & Outsourced Services — 3.1%
CyberSource Corp. (1)(2)	130,800	1,611,456
Global Payments, Inc. (1)	40,200	1,233,336
Lender Processing Services, Inc. (1)	86,700	2,270,673
		5,115,465
Electronic Equipment & Instruments — 0.6%
Cogent, Inc. (1)(2)	98,000	1,019,200
Internet Software & Services — 6.3%
Art Technology Group, Inc. (2)	762,800	1,662,904
AsiaInfo Holdings, Inc. (1)(2)	143,000	1,746,030
Equinix, Inc. (1)(2)	39,500	1,833,195
Omniture, Inc. (1)(2)	139,900	1,589,264
VistaPrint Ltd. (1)(2)	71,100	1,741,950
		8,573,343
Semiconductors — 0.5%
RF Micro Devices, Inc. (2)	970,200	882,882
Systems Software — 1.2%
Ariba, Inc. (1)(2)	193,100	1,689,625
Macrovision Solutions Corp. (2)	128,600	2,022,878
		3,712,503
Total Information Technology		38,104,286
Materials — 4.0%
Gold — 0.9%
Eldorado Gold Corporation (1)(2)	176,800	1,458,600
Precious Metals & Minerals — 1.9%
Pan American Silver Corp. (1)(2)	105,500	1,519,200
Silver Wheaton Corp. (1)(2)	242,000	1,618,980
		3,138,180
Specialty Chemicals — 1.2%
Sensient Technologies Corp.	98,300	1,985,660
Total Materials		6,582,440
Telecommunication Services — 2.6%
Wireless Telecommunication Services — 2.6%
Leap Wireless International, Inc. (1)(2)	92,900	2,518,519
SBA Communications Corp. (2)	87,200	1,812,016
Total Telecommunication Services		4,330,535
Total Common Stocks (identified cost $188,215,614)		161,851,636

(See Notes which are an integral part of the Financial Statements)

13

February 28, 2009 (Unaudited)

Schedule of Investments

Small-Cap Growth Fund (continued)

Description	Principal Amount	Value
Short-Term Investments — 42.2%
Collateral Pool Investment for Securities on Loan — 39.7%
(See Note 2 of the Financial Statements)		$  65,491,802
Repurchase Agreement — 2.5%
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009 to be repurchased at $4,207,369 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 8/23/2010, with a market value of $4,296,523 (at amortized cost)	$4,207,296	4,207,296
Total Short-Term Investments (identified cost $69,699,098)		69,699,098
Total Investments — 140.3% (identified cost $257,914,712)		231,550,734
Other Assets and Liabilities — (40.3)%		(66,473,544	)
Total Net Assets — 100.0%		$165,077,190

Portfolio Sector Allocations*
Sector	Fund
Consumer Discretionary	14.1%
Consumer Staples	6.0
Energy	4.6
Financials	9.3
Healthcare	25.2
Industrials	9.2
Information Technology	23.1
Materials	4.0
Telecommunication Services	2.6
Other Assets & Liabilities, Net	1.9
Total	100.0%

International Stock Fund

Description	Shares	Value
Common Stocks — 88.7%
Australia — 1.7%
Amcor, Ltd.	44,465	$       124,637
BHP Billiton, Ltd. (1)	35,400	644,115
BlueScope Steel, Ltd. (1)	69,433	97,396
Caltex Australia, Ltd.	3,233	19,188
CSL, Ltd. (1)	27,300	633,631
Downer EDI, Ltd.	15,041	35,287
Iluka Resources, Ltd. (2)	19,915	54,021
PaperlinX, Ltd.	48,477	21,225
Telstra Corp., Ltd.	73,196	165,741
Washington H. Soul Pattinson & Co., Ltd.	7,582	38,241
		1,833,482

Description	Shares	Value
Common Stocks (continued)
Austria — 0.1%
Erste Group Bank AG (1)	9,858	$         95,345
Belgium — 1.2%
Anheuser-Busch InBev NV (1)	8,624	238,110
Bekaert NV	410	20,044
Cofinimmo, REIT	213	23,115
Compagnie Nationale a Portefeuille	483	20,183
Delhaize Group (1)	17,225	1,005,239
Dexia SA	5,649	11,987
Tessenderlo Chemie NV	1,417	42,082
		1,360,760
Bermuda — 0.3%
Brilliance China Automotive Holdings, Ltd. (2)	358,000	19,781
Catlin Group, Ltd.	12,551	74,289
Lancashire Holdings, Ltd. (2)	39,366	270,715
		364,785
Brazil — 0.3%
Brasil Telecom Participacoes SA	468	11,810
Companhia Vale do Rio Doce, ADR	26,200	337,718
		349,528
Canada — 0.3%
Aecon Group, Inc.	1,400	10,014
Alimentation Couche-Tard, Inc., Class B	6,100	62,812
CGI Group, Inc., Class A (2)	16,935	123,798
Laurentian Bank of Canada	1,500	37,600
Magna International, Inc., Class A	1,500	38,485
National Bank of Canada	129	3,841
Thompson Creek Metals Co., Inc. (2)	7,400	22,801
		299,351
Chile — 0.2%
Banco Santander — Chile, ADR	3,600	125,748
Enersis SA, ADR	4,800	69,216
		194,964
China — 0.5%
Dongfeng Motor Group Co., Ltd., Class H	156,000	57,071
Industrial & Commercial Bank of China, Ltd., Class H	630,000	253,426
SINA Corp. (2)	11,300	242,611
		553,108
Cyprus — 0.1%
Bank of Cyprus Public Co., Ltd.	62,162	128,828
Denmark — 0.2%
D/S Norden A/S (1)	5,512	180,961
Finland — 0.0%
KCI Konecranes Oyj	1,435	23,286
TietoEnator Oyj	2,012	25,214
		48,500
France — 6.0%
Alstom SA (1)	29,286	1,395,203
Bouygues SA (1)	26,397	759,956
CNP Assurances	739	47,826
Compagnie de Saint-Gobain (1)	26,647	618,035
France Telecom SA (1)	41,128	927,796
Groupe Eurotunnel SA (2)	1,196	4,673
Nexans SA	1,494	58,079
Sanofi-Aventis SA	36,431	1,882,767

(See Notes which are an integral part of the Financial Statements)

14

Marshall Funds

International Stock Fund (continued)

Description	Shares	Value
Common Stocks (continued)
France (continued)
Thomson (2)	17,266	$         14,803
Total SA (1)	18,509	875,881
		6,585,019
Germany — 10.0%
Aareal Bank AG	3,094	15,254
Adidas AG (1)	36,227	1,055,043
Allianz SE	1,117	75,666
Daimler AG	33,100	753,240
Demag Cranes AG	1,783	34,826
Deutsche Boerse AG (1)	13,141	604,362
Deutsche Lufthansa AG (1)	170,482	1,879,905
E.ON AG (1)	7,317	188,110
Fresenius SE	2,695	122,441
GEA Group AG	63,025	679,532
Hannover Rueckversicherung AG (1)	36,514	1,327,380
K+S AG (1)	23,300	1,049,172
Kloeckner & Co. SE	656	7,519
MAN AG	20,222	819,814
MTU Aero Engines Holding AG	1,848	48,008
Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe) (1)	10,636	1,304,848
Norddeutsche Affinerie AG (1)	1,666	41,910
Rheinmetall AG	1,098	36,150
SAP AG (1)	26,688	861,315
ThyssenKrupp AG (1)	5,512	98,577
		11,003,072
Greece — 0.2%
National Bank of Greece SA	15,017	185,645
Hong Kong — 4.3%
China Mobile, Ltd., ADR	15,000	650,250
CNOOC, Ltd.	650,900	562,127
Esprit Holdings, Ltd.	142,800	765,418
Hutchison Whampoa, Ltd.	252,300	1,314,064
Li & Fung, Ltd.	554,300	1,213,351
Shenyin Wanguo Hong Kong, Ltd.	40,000	13,961
Swire Pacific, Ltd., Class A	28,000	170,655
Vedan International Holdings, Ltd.	288,000	14,118
		4,703,944
India — 2.7%
Bank of Baroda	56,990	243,369
Bank of India	118,959	523,967
Canara Bank	54,240	175,174
Gail India, Ltd.	85,349	341,341
Housing Development Finance Corp., Ltd	26,574	654,695
Punjab National Bank, Ltd.	52,651	346,894
State Bank of India	7,581	150,332
State Bank of India, GDR	11,500	463,331
Tata Steel, Ltd.	27,654	92,674
		2,991,777
Italy — 1.5%
Intesa Sanpaolo SpA (1)	251,320	611,718
Lottomatica SpA (1)	59,573	957,464
UniCredit SpA	18,394	23,444
		1,592,626
Japan — 22.1%
Aisin Seiki Co., Ltd.	19,600	295,462
Alfresa Holdings Corp.	700	27,204
Alpen Co., Ltd.	311	4,951
Alpine Electronics, Inc.	3,800	24,256

Description	Shares	Value
Common Stocks (continued)
Japan (continued)
Alps Electric Co., Ltd.	7,600	$         21,000
Arrk Corp. (2)	9,000	5,876
Asahi Glass Co., Ltd. (1)	85,500	367,752
Brother Industries, Ltd. (1)	30,000	201,097
Canon, Inc. (1)	20,150	508,900
Central Glass Co., Ltd.	5,000	12,943
Chubu Electric Power Co., Inc. (1)	19,100	471,534
Chugoku Bank, Ltd.	5,000	61,883
Chuo Mitsui Trust Holdings, Inc. (1)	95,200	287,530
Credit Saison Co., Ltd. (1)	54,320	352,603
Dai Nippon Printing Co., Ltd.	19,000	160,016
Daihatsu Motor Co., Ltd.	1,000	7,550
Daishi Bank, Ltd.	55,000	217,187
Daito Trust Construction Co., Ltd. (1)	14,800	465,352
Ebara Corp.	24,000	40,945
Fanuc, Ltd. (1)	8,600	559,022
Fuji Heavy Industries, Ltd. (1)	168,000	530,337
Fuji Oil Co., Ltd.	2,500	31,240
FUJI SOFT, Inc.	4,100	59,911
Fukuyama Transporting Co., Ltd.	6,000	23,252
Futaba Corp.	1,200	16,615
Gunma Bank, Ltd.	7,000	37,241
H.I.S. Co., Ltd.	6,900	99,849
Hanwa Co., Ltd.	33,000	88,398
Hino Motors, Ltd. (1)	84,000	154,304
Hitachi Information Systems, Ltd.	4,100	65,626
Hitachi Software Engineering Co., Ltd.	33,400	386,137
Hitachi, Ltd.	636,000	1,577,143
Honda Motor Co., Ltd. (1)	31,800	763,949
Hyakugo Bank, Ltd. (1)	41,000	213,379
INPEX Corp.	62	418,900
Inui Steamship Co., Ltd. (1)	19,600	116,149
Itoham Foods, Inc.	10,000	29,227
J-Oil Mills, Inc.	8,000	21,432
Japan Tobacco, Inc.	456	1,080,238
K.K. daVinci Holdings (2)	182	4,588
Kagoshima Bank, Ltd.	10,000	70,238
Kaken Pharmaceutical Co., Ltd.	5,000	47,218
Kanto Auto Works, Ltd.	3,400	28,611
Konica Minolta Holdings, Inc.	59,100	447,593
Kyoei Steel, Ltd.	800	14,872
Kyokuyo Co., Ltd.	8,000	14,514
Leopalace21 Corp. (1)	39,900	220,614
Marubeni Corp.	66,000	204,147
Meiji Seika Kaisha, Ltd. (1)	83,000	273,681
Mie Bank, Ltd.	26,000	78,296
Mimasu Semiconductor Industry Co., Ltd.	5,500	55,051
Mitsubishi UFJ Financial Group, Inc. (1)	107,000	486,625
Mitsui & Co., Ltd.	197,000	1,807,078
Mizuho Financial Group, Inc. (1)	187,000	353,047
NEC Corp. (1)	78,000	182,951
NEC Electronics Corp. (2)	3,000	14,653
NET One Systems Co., Ltd.	26	36,385
Nichirei Corp.	11,000	36,190
Nihon Unisys, Ltd.	500	3,530
Nikon Corp. (1)	53,500	498,457
Nintendo Co., Ltd.	4,800	1,360,557
Nippo Corp.	12,000	96,250
Nippon Denko Co., Ltd.	8,000	21,852
Nippon Flour Mills Co., Ltd.	9,000	40,388
Nippon Meat Packers, Inc. (1)	25,000	241,861
Nippon Oil Corp.	161,000	762,131
Nippon Paper Group, Inc.	5,300	117,904

(See Notes which are an integral part of the Financial Statements)

15

February 28, 2009 (Unaudited)

Schedule of Investments

International Stock Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Japan (continued)
Nippon Sheet Glass Co., Ltd.	46,000	$         90,644
Nippon Shinyaku Co., Ltd.	4,000	37,924
Nippon Soda Co., Ltd.	25,000	70,562
Nippon Telegraph & Telephone Corp.	41,000	1,757,821
NIS Group Co., Ltd. (2)	45,200	7,331
Nishimatsu Construction Co., Ltd.	24,000	20,441
Nissan Shatai Co., Ltd.	5,000	28,692
Nisshin Seifun Group, Inc.	7,500	75,427
Nisshin Steel Co., Ltd.	24,000	36,540
NSD Co., Ltd.	5,700	34,074
Pilot Corp.	53	60,119
Pioneer Corp.	11,447	11,784
Prima Meat Packers, Ltd. (2)	47,000	57,533
Q.P. Corp.	5,400	59,946
San-In Godo Bank, Ltd.	26,000	184,115
Sanken Electric Co., Ltd.	6,000	14,548
Sanki Engineering Co., Ltd.	3,000	15,128
Seiko Epson Corp. (1)	26,400	297,964
Seino Holdings Co., Ltd.	15,000	69,778
Shinsei Bank, Ltd. (1)	160,000	139,974
SKY Perfect JSAT Holdings, Inc.	271	106,029
Sony Corp.	3,800	63,467
Sumikin Bussan Corp.	26,000	58,871
Sumitomo Mitsui Financial Group, Inc.	13,600	433,413
Taikisha, Ltd.	6,628	79,849
Toagosei Co., Ltd.	9,000	20,091
Tohoku Electric Power Co., Inc.	2,900	67,875
Tokyo Tekko Co., Ltd.	4,000	8,192
Toyo Engineering Corp.	1,953	5,262
Toyo Seikan Kaisha, Ltd. (1)	16,700	211,818
Toyo Tire & Rubber Co., Ltd.	15,000	17,288
Toyota Motor Corp.	57,900	1,848,991
Unipres Corp.	12,000	84,050
West Japan Railway Co.	65	230,066
Yamada Denki Co., Ltd.	8,910	323,074
Yamaguchi Financial Group, Inc.	11,000	95,634
Yamazaki Baking Co., Ltd. (1)	10,000	125,050
		24,175,037
Mexico — 0.0%
Grupo Financiero Banorte SAB de CV, Class O	1,700	1,790
Netherlands — 4.5%
Aegon NV	53,880	193,659
Draka Holding NV (1)	1,232	8,651
European Aeronautic Defence and Space Co. NV	1,512	22,264
Heineken NV (1)	22,487	605,860
Koninklijke Ahold NV (1)	36,070	404,247
Koninklijke Philips Electronics NV (1)	74,026	1,193,865
OCE NV (1)	10,658	27,172
Royal Dutch Shell PLC, Class A	111,775	2,464,211
SNS Reaal	4,100	15,452
		4,935,381
New Zealand — 0.3%
Telecom Corp. of New Zealand, Ltd. (1)	288,425	340,128
Norway — 2.1%
Norsk Hydro ASA (1)	40,200	129,548
Norske Skogindustrier ASA (1)(2)	81,037	133,683

Description	Shares	Value
Common Stocks (continued)
Norway (continued)
StatoilHydro ASA (1)	62,800	$    1,049,677
Yara International ASA (1)	46,310	987,734
		2,300,642
Poland — 0.1%
KGHM Polska Miedz SA	11,274	104,904
Telekomunikacja Polska SA	9,447	45,696
		150,600
Portugal — 0.8%
Jeronimo Martins, SGPS, SA	215,325	879,311
Russia — 0.7%
Gazprom OAO, ADR	30,300	390,225
LUKOIL, ADR	11,800	374,929
		765,154
Singapore — 1.0%
DBS Group Holdings, Ltd.	127,000	636,044
Ezra Holdings, Ltd.	32,000	10,497
Golden Agri-Resources, Ltd.	850,715	154,785
Jardine Cycle & Carriage, Ltd.	33,000	186,394
Macquarie International Infrastructure Fund, Ltd.	283,000	54,661
		1,042,381
South Africa — 0.0%
Sappi, Ltd.	3,748	7,036
South Korea — 2.7%
Honam Petrochemical Corp. (2)	1,946	58,878
Hyundai Marine & Fire Insurance Co., Ltd.	10,580	71,505
Korea Gas Corp. (2)	105	2,781
Korea Kumho Petrochemical Co., Ltd. (2)	3,140	34,803
KT Corp.	22,360	542,792
KT Freetel Co., Ltd. (2)	8,990	159,747
LG Chem, Ltd.	3,180	174,414
LG Display Co., Ltd.	45,790	762,975
LG Telecom, Ltd.	620	3,575
Samsung Electronics Co., Ltd.	3,080	952,076
SK Telecom Co., Ltd.	1,813	220,519
		2,984,065
Spain — 2.4%
Banco Santander SA	96,071	592,387
Industria de Diseno Textil SA (Inditex)	27,431	1,038,302
Telefonica SA	56,412	1,050,588
		2,681,277
Sweden — 0.7%
Electrolux AB (1)	92,600	635,150
Industrivarden AB, Class A	2,551	15,863
JM AB (1)	27,600	116,095
NCC AB, Class B	1,200	6,453
		773,561
Switzerland — 3.9%
Julius Baer Holding, Ltd. (1)	48,761	1,129,995
Nestle SA	1,904	62,257
Novartis AG (1)	52,820	1,922,399
Roche Holding AG	7,844	889,563
Valiant Holding AG	823	140,182
Zurich Financial Services AG	861	122,273
		4,266,669
Taiwan — 2.3%
Chunghwa Telecom Co., Ltd.	436,810	672,574

(See Notes which are an integral part of the Financial Statements)

16

Marshall Funds

International Stock Fund (continued)

Description	Shares or Principal Amount	Value
Common Stocks (continued)
Taiwan (continued)
Compal Electronics, Inc.	69,555	$         39,161
Fubon Financial Holding Co., Ltd.	352,000	186,216
HON HAI Precision Industry Co., Ltd.	175,945	347,278
POU Chen Corp.	54,000	23,093
Quanta Computer, Inc.	528,000	530,014
Taiwan Business Bank (2)	13,000	2,284
Taiwan Semiconductor Manufacturing Co., Ltd., ADR	88,900	670,306
Tatung Co., Ltd. (2)	228,000	34,063
		2,504,989
Turkey — 0.4%
Akbank TAS	141,040	324,545
KOC Holding AS (2)	37,375	46,315
Tupras-Turkiye Petrol Rafinerileri AS	10,375	94,418
		465,278
United Kingdom — 15.1%
3i Group PLC	3,191	9,068
AstraZeneca PLC	74,503	2,382,959
BAE Systems PLC	6,639	35,157
BG Group PLC	58,037	828,165
British American Tobacco PLC	60,451	1,552,892
BT Group PLC	548,332	705,989
Carillion PLC	6,304	19,802
Centrica PLC	228,780	883,624
Diageo PLC	89,557	1,046,870
Drax Group PLC	48,092	357,507
Game Group PLC	50,370	104,950
Home Retail Group PLC	195,902	593,884
HSBC Holdings PLC	15,781	110,343
IG Group Holdings PLC	4,699	18,007
Imperial Tobacco Group PLC	61,086	1,466,497
National Grid PLC	188,051	1,679,320
Next PLC	68,624	1,144,460
Reckitt Benckiser Group PLC	10,024	385,805
Smith & Nephew PLC	165,213	1,171,084
Stagecoach Group PLC	101,032	167,300
Tomkins PLC	30,502	49,089
Vodafone Group PLC	813,992	1,446,962
Wolseley PLC	29,995	76,350
WPP PLC	53,587	279,368
		16,515,452
Total Common Stocks (identified cost $146,492,742)		97,260,446
Depository Notes — 0.1%
Diversified Financial Services — 0.1%
JP Morgan International Derivatives, Ltd., (Series BSKt), 0.000%, 5/4/2012	$   432,500	107,736
Total Depository Notes (identified cost $171,115)		107,736

Description	Shares or Principal Amount	Value
Preferred Stocks — 1.4%
Brazil — 0.1%
Itausa-Investimentos Itau SA	20,900	$        61,789
Germany — 1.3%
Fresenius SE	27,883	1,412,526
Italy — 0.0%
IFI-Istituto Finanziario Industriale SpA	2,243	9,619
Total Preferred Stocks (identified cost $2,296,034)		1,483,934
Warrant — 0.0%
France — 0.0%
Compagnie de Saint-Gobain	26,647	39,187
Total Warrants (identified cost $0)		39,187
Short-Term Investments — 28.3%
Collateral Pool Investment for Securities on Loan — 24.0%
(See Note 2 of the Financial Statements)		26,226,752
Repurchase Agreement — 4.3%
Agreement with Fixed Income Clearing Corp., 0.140%, dated 2/27/2009, to be repurchased at $4,731,925 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 3/31/2009, with a market value of $4,829,034 (at amortized cost)	$4,731,869	4,731,869
Total Short-Term Investments (identified cost $30,958,621)		30,958,621
Total Investments — 118.5% (identified cost $179,918,512)		129,849,924
Other Assets and Liabilities — (18.5)%		(20,257,798	)
Total Net Assets — 100.0%		$109,592,126

Portfolio Sector Allocations*
Sector	Fund
Consumer Discretionary	12.6%
Consumer Staples	9.1
Energy	7.2
Financials	14.2
Health Care	9.6
Industrials	12.6
Information Technology	9.0
Materials	4.3
Telecommunication Services	7.9
Utilities	3.7
Other Assets & Liabilities, Net	9.8
Total	100.0%

(See Notes which are an integral part of the Financial Statements)

17

February 28, 2009 (Unaudited)

Schedule of Investments

International Stock Fund (continued)

Industry Division

Industry	Value			% of Total Net Assets
Aerospace/Defense	$	105,428		0.1	%
Agriculture		4,254,413		3.9
Airlines		1,879,905		1.7
Apparel		1,843,554		1.7
Auto Manufacturers		4,192,524		3.8
Auto Parts & Equipment		435,284		0.4
Banks		9,005,697		8.2
Beverages		1,890,841		1.7
Biotechnology		633,632		0.6
Building Materials		1,089,374		1.0
Chemicals		2,402,931		2.2
Commercial Services		164,604		0.1
Computers		820,198		0.7
Distribution/Wholesale		3,634,589		3.3
Diversified Financial Services		1,838,965		1.7
Electric		2,476,056		2.3
Electrical Components & Equipment		1,899,076		1.7
Electronics		2,524,684		2.3
Engineering & Construction		1,164,537		1.1
Entertainment		957,463		0.9
Food		3,371,663		3.1
Forest Products & Paper		279,848		0.3
Gas		1,227,746		1.1
Hand/Machine Tools		23,286		0.0
Healthcare-Products		1,293,526		1.2
Holding Companies-Diversified		2,642,360		2.4
Home Furnishings		749,459		0.7
Household Products/Wares		445,924		0.4
Insurance		3,488,162		3.2
Internet		242,611		0.2
Investment Companies		54,661		0.0
Iron/Steel		355,770		0.3
Leisure Time		99,849		0.1
Machinery-Diversified		2,885,960		2.6
Media		385,397		0.4
Metal Fabricate/Hardware		171,458		0.2
Mining		1,185,411		1.1
Miscellaneous Manufacturing		1,035,818		0.9
Office/Business Equipment		834,036		0.8
Oil & Gas		7,839,853		7.2
Packaging & Containers		336,455		0.3
Pharmaceuticals		7,190,033		6.6
Real Estate		685,966		0.6
Real Estate Investment Trusts		23,115		0.0
Retail		3,272,432		3.0
Semiconductors		1,706,634		1.6
Software		1,344,966		1.2
Telecommunications		8,701,990		7.9
Toys/Games/Hobbies		1,360,557		1.2
Transportation		802,677		0.7
Venture Capital		9,068		0.0
Total Common Stocks		97,260,446		88.7
Depository Notes		107,736		0.1
Preferred Stocks		1,483,934		1.4
Warrants		39,187		0.0
Collateral Pool Investment for Securities on Loan		26,226,752		24.0
Repurchase Agreement		4,731,869		4.3
Total Investments		129,849,924		118.5
Other Assets and Liabilities		(20,257,798	)	(18.5	)
Total Net Assets	$	109,592,126		100.0	%

Emerging Markets Equity Fund

Description	Shares	Value
Common Stocks — 91.2%
Brazil — 12.7%
Banco Bradesco SA, ADR	10,300	$     89,816
BM&FBOVESPA SA	17,800	44,288
Companhia Vale do Rio Doce, ADR	12,300	158,547
EDP — Energias do Brasil SA	8,200	80,238
Empresa Brasileira de Aeronautica SA, ADR	3,500	37,835
Gafisa SA, ADR	7,800	64,428
Global Village Telecom Holding SA (2)	8,045	82,421
MRV Engenharia e Participacoes SA	11,700	50,980
NET Servicos de Comunicacao SA (2)	8,900	56,383
Petroleo Brasileiro SA, ADR	8,900	246,797
Redecard SA	5,155	53,891
Unibanco — Uniao de Bancos Brasileiros SA, ADR	2,400	125,592
		1,091,216
Chile — 4.9%
Banco Santander — Chile, ADR	4,600	160,678
Lan Airlines SA, ADR	12,200	100,650
Sociedad Quimica y Minera de Chile SA, ADR	5,500	158,510
		419,838
China — 12.0%
China High Speed Transmission Equipment Group Co., Ltd.	44,000	56,571
China Molybdenum Co., Ltd., Class H	206,000	75,378
China Shenhua Energy Co., Ltd., Class H	66,000	127,232
China Yurun Food Group, Ltd.	56,000	66,544
Harbin Power Equipment Co., Ltd., Class H	98,000	56,151
Industrial & Commercial Bank of China, Ltd., Class H	494,000	198,718
New World Department Store China, Ltd.	102,000	33,942
Parkson Retail Group, Ltd.	72,000	57,849
PetroChina Co., Ltd., ADR	1,000	70,870
SINA Corp. (2)	8,100	173,907
Want Want China Holdings, Ltd.	286,000	112,635
		1,029,797
Colombia — 1.2%
BanColombia SA, ADR	6,000	99,600
Czech Republic — 2.4%
CEZ	4,551	139,047
Komercni Banka AS	969	71,080
		210,127
Egypt — 0.6%
Orascom Construction Industries	2,700	53,975
Hong Kong — 7.1%
China Mobile, Ltd., ADR	4,400	190,740
China Overseas Land & Investment, Ltd.	150,000	194,993
CNOOC, Ltd., ADR	2,600	223,418
		609,151
India — 2.5%
Infosys Technologies, Ltd., ADR	4,200	101,640
State Bank of India, GDR	2,800	112,811
		214,451

(See Notes which are an integral part of the Financial Statements)

18

Marshall Funds

Emerging Markets Equity Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Indonesia — 1.2%
Bank Mandiri Persero Tbk PT	704,668	$   100,372
Israel — 4.8%
Elbit Systems, Ltd.	1,900	81,235
Israel Chemicals, Ltd.	19,300	145,168
Teva Pharmaceutical Industries, Ltd., ADR	4,100	182,778
		409,181
Malaysia — 0.3%
KNM Group Bhd	220,209	21,735
Mexico — 6.6%
America Movil SAB de CV, ADR	6,500	165,620
Corp. GEO SAB de CV (2)	93,195	85,363
Grupo Financiero Banorte SAB de CV, Class O	46,957	49,454
Grupo Mexico SAB de CV	86,616	49,194
Grupo Televisa SA, ADR	8,700	105,879
Wal-Mart de Mexico SAB de CV	57,141	106,516
		562,026
Russia — 6.4%
Gazprom OAO, ADR	15,200	195,757
LUKOIL, ADR	2,800	88,966
Mobile Telesystems OJSC, ADR	4,100	97,129
NovaTek OAO, GDR	6,000	140,399
TMK OAO, GDR	8,000	30,000
		552,251
South Africa — 4.9%
Aspen Pharmacare Holdings, Ltd. (2)	22,000	90,136
Massmart Holdings, Ltd.	12,100	86,539
MTN Group, Ltd.	8,200	69,623
Naspers, Ltd., N Shares	11,200	170,354
		416,652
South Korea — 9.0%
KB Financial Group, Inc., ADR (2)	3,300	62,106
KT&G Corp.	1,607	82,269
NHN Corp. (2)	1,700	144,818
Samsung Electronics Co., Ltd., GDR	1,300	198,250
Shinhan Financial Group Co., Ltd., ADR (2)	1,350	40,027
Shinsegae Co., Ltd.	440	113,809
Woongjin Coway Co., Ltd.	7,180	126,291
		767,570
Taiwan — 5.8%
Acer, Inc.	122,000	158,603
Delta Electronics, Inc.	72,000	112,431
HON HAI Precision Industry Co., Ltd.	29,000	57,240
HTC Corp.	4,000	42,856
Taiwan Semiconductor Manufacturing Co., Ltd., ADR	17,000	128,180
		499,310
Thailand — 3.0%
Bangkok Bank PCL	35,000	71,360
Banpu PCL	15,400	88,306
Kasikornbank PCL	81,700	99,527
		259,193
Turkey — 2.7%
Akbank TAS	48,000	110,452
Anadolu Efes Biracilik Ve Malt Sanayii AS	6,600	41,948
Turkiye Garanti Bankasi AS (2)	65,600	79,677
		232,077

Description	Shares or Principal Amount	Value
Common Stocks (continued)
United Kingdom — 3.1%
BHP Billiton PLC	13,709	$    210,769
SABMiller PLC	3,900	55,614
		266,383
Total Common Stocks (identified cost $8,784,891)		7,814,905
Exchange Traded Funds — 2.9%
Singapore — 2.9%
iShares MSCI India (2)	85,000	249,710
Total Exchange Traded Funds (identified cost $303,501)		249,710
Short-Term Investments — 4.4%
Repurchase Agreement — 4.4%
Agreement with Fixed Income Clearing Corp., 0.140%, dated 2/27/2009, to be repurchased at $374,196 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 6/4/2009, with a market value of $384,692 (at amortized cost)	$374,191	374,191
Total Short-Term Investments (identified cost $374,191)		374,191
Total Investments — 98.5% (identified cost $9,462,583)		8,438,806
Other Assets and Liabilities — 1.5%		127,587
Total Net Assets — 100.0%		$8,566,393

Portfolio Sector Allocations*
Sector	Fund
Consumer Discretionary	8.8%
Consumer Staples	7.8
Energy	14.3
Financials	20.0
Healthcare	3.2
Industrials	4.5
Information Technology	13.7
Materials	9.3
Telecommunication Services	7.1
Utilities	2.5
Exchange Traded Funds	2.9
Other Assets & Liabilities, Net	5.9
Total	100.0%

(See Notes which are an integral part of the Financial Statements)

19

February 28, 2009 (Unaudited)

Schedule of Investments

Emerging Markets Equity Fund (continued)

Industry Division

Industry	Value		% of Total Net Assets
Aerospace/Defense	$	119,070	1.4	%
Agriculture		82,269	1.0
Airlines		100,650	1.2
Banks		1,319,683	15.4
Beverages		97,562	1.1
Chemicals		303,678	3.5
Coal		215,538	2.5
Computers		303,099	3.5
Diversified Financial Services		249,767	2.9
Electric		219,285	2.6
Electrical Components & Equipment		225,153	2.6
Electronics		57,240	0.7
Engineering & Construction		53,975	0.6
Environmental Control		126,290	1.5
Food		179,179	2.1
Healthcare-Products		90,135	1.0
Home Builders		200,771	2.3
Internet		318,725	3.7
Media		332,617	3.9
Metal Fabricate/Hardware		51,735	0.6
Mining		493,889	5.8
Oil & Gas		966,207	11.3
Pharmaceuticals		182,778	2.1
Real Estate		194,993	2.3
Retail		398,654	4.7
Semiconductors		326,430	3.8
Telecommunications		605,533	7.1
Total Common Stocks		7,814,905	91.2
Exchange Traded Funds		249,710	2.9
Repurchase Agreement		374,191	4.4
Total Investments		8,438,806	98.5
Other Assets and Liabilities		127,587	1.5
Total Net Assets	$	8,566,393	100.0	%

Short-Term Income Fund

Description	Principal Amount	Value
Asset-Backed Securities — 16.4%
Automobiles — 11.3%
Capital One Auto Finance Trust, Class A3A, (Series 2007-A), 5.250%, 8/15/2011	$1,063,254	$  1,035,930
DaimlerChrysler Auto Trust, Class A3A, (Series 2007-A), 5.000%, 2/8/2012	1,600,000	1,515,478
DaimlerChrysler Auto Trust, Class A4, (Series 2006-C), 4.980%, 11/8/2011	2,000,000	1,945,012
Fifth Third Auto Trust, Class A4A, (Series 2008-1), 4.810%, 1/15/2013	1,500,000	1,447,589
Triad Auto Receivables Owner Trust, Class A2A, (Series 2007-B), 5.300%, 10/12/2011	600,039	589,947
USAA Auto Owner Trust, Class A4, (Series 2006-4), 4.980%, 10/15/2012	1,650,000	1,655,250
World Omni Auto Receivables Trust, Class A3, (Series 2007-A), 5.230%, 2/15/2011	897,766	899,215
		9,088,421
Credit Cards — 4.2%
Chase Issuance Trust, Class A, (Series 2007-A15), 4.960%, 9/17/2012	1,500,000	1,530,885
GE Capital Credit Card Master Note Trust, Class A, (Series 2006-1), 5.080%, 9/15/2012	1,850,000	1,846,766
		3,377,651
Home Equity — 0.2%
Green Tree Home Improvement Loan Trust, Class HEB1, (Series 1998-B), 7.810%, 11/15/2029	149,538	149,966
Other Financial — 0.7%
Countrywide Asset-Backed Certificates, Class A1, (Series 2007-QH2), 0.714%, 4/25/2037 (4)(6)(7)	1,043,976	566,405
Total Asset-Backed Securities (identified cost $13,852,990)		13,182,443
Collateralized Mortgage Obligations — 26.9%
Federal Home Loan Mortgage Corporation — 5.1%
5.250%, 1/15/2034, (Series 3014)	419,162	430,646
5.500%, 7/15/2027, (Series 2572)	957,074	964,557
5.900%, 11/15/2035, (Series 3061)	1,122,623	1,140,622
6.000%, 3/15/2027, (Series 3207)	1,520,504	1,549,931
		4,085,756
Federal National Mortgage Association — 0.5%
5.000%, 7/25/2033, (Series 2003-63)	390,071	393,319
Government National Mortgage Association — 4.1%
2.866%, 2/16/2020, (Series 2003-48)	365,793	366,855
3.206%, 4/16/2018, (Series 2003-72)	554,782	558,006

(See Notes which are an integral part of the Financial Statements)

20

Marshall Funds

Short-Term Income Fund (continued)

Description	Principal Amount	Value
Collateralized Mortgage Obligations (continued)
Government National Mortgage Association (continued)
3.590%, 11/16/2017, (Series 2004-78)	$   416,229	$   415,960
4.408%, 1/16/2025, (Series 2004-103)	1,000,000	1,008,211
4.419%, 5/16/2034, (Series 2007-46)	1,000,000	1,006,089
		3,355,121
Private Sponsor — 17.2%
Banc of America Funding Corp., Class 1A12, (Series 2006-6), 5.750%, 8/25/2036	1,440,427	1,331,818
Banc of America Funding Corp., Class 1A3, (Series 2007-C), 5.758%, 5/20/2036 (4)	1,480,478	1,033,514
Countrywide Alternative Loan Trust, Class 1A2, (Series 2004-J9), 4.586%, 10/25/2034	683,897	598,895
Countrywide Alternative Loan Trust, Class 2A14, (Series 2006-41CB), 6.000%, 1/25/2037	607,882	423,758
Countrywide Home Loan Mortgage Pass-Through Trust, Class 2A2A, (Series 2006-HYB1), 5.526%, 3/20/2036 (4)	741,362	618,359
CS First Boston Mortgage Securities Corp., Class 1A3, (Series 2003-11), 4.500%, 6/25/2033	113,945	111,836
GMAC Mortgage Corporation Loan Trust, Class 2A2, (Series 2006-AR2), 5.735%, 5/19/2036 (4)	1,039,012	420,761
GSR Mortgage Loan Trust, Class 2A4, (Series 2005-AR5), 5.169%, 10/25/2035 (4)	985,174	669,515
JP Morgan Alternative Loan Trust, Class 2A4, (Series 2006-A5), 5.850%, 10/25/2036 (4)	2,000,000	1,043,732
JP Morgan Mortgage Trust, Class 2A2, (Series 2005-S3), 5.500%, 1/25/2021	875,013	734,166
JP Morgan Mortgage Trust, Class 3A1, (Series 2007-A2), 5.850%, 4/25/2037 (4)	1,024,030	807,328
Master Adjustable Rate Mortgages Trust, Class 3A4, (Series 2004-13), 3.788%, 11/21/2034 (4)	490,931	473,627
PHH Alternative Mortgage Trust, Class 1A1, (Series 2007-2), 0.584%, 5/25/2037 (4)	746,835	651,033
Residential Funding Mortgage Securities, Class 2A2, (Series 2006-SA3), 5.950%, 9/25/2036 (4)	1,049,924	782,512
Washington Mutual Mortgage Pass-Through Certificates, Class A4, (Series 2004-AR7), 3.939%, 7/25/2034 (4)	2,860,153	2,833,059
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR7), 5.605%, 5/25/2036 (4)	1,090,601	742,543

Description	Principal Amount	Value
Collateralized Mortgage Obligations (continued)
Private Sponsor (continued)
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR8), 5.240%, 4/25/2036 (4)	$   816,637	$     516,918
		13,793,374
Total Collateralized Mortgage Obligations (identified cost $25,472,232)		21,627,570
Commercial Mortgage Securities — 14.0%
Private Sponsor — 14.0%
Banc of America Commercial Mortgage, Inc., Class A1, (Series 2007-5), 5.175%, 2/10/2051	1,302,917	1,254,124
Commercial Mortgage Loan Trust, Class A1, (Series 2008-LS1), 5.935%, 12/10/2049	1,090,798	992,140
Commercial Mortgage Pass-Through Certificates, Class A2A, (Series 2006-C8), 5.219%, 12/10/2046	1,250,000	1,028,988
Commercial Mortgage Pass-Through Certificates, Class A3, (Series 2004-LB3A), 5.090%, 7/10/2037	1,250,000	1,121,987
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1, (Series 2004-C1), 3.053%, 1/15/2038	256,590	249,149
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1, (Series 2006-CB16), 5.338%, 5/12/2045	926,952	909,697
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1, (Series 2007-LD12), 5.738%, 2/15/2051	1,274,787	1,252,792
LB-UBS Commercial Mortgage Trust, Class A1, (Series 2006-C6), 5.230%, 9/15/2039	1,093,119	1,069,215
LB-UBS Commercial Mortgage Trust, Class A1, (Series 2007-C6), 5.569%, 7/15/2040	1,147,387	1,110,899
Lehman Brothers Commercial Mortgage Trust, Class A1, (Series 2007-LLFA), 0.755%, 6/15/2022 (4)(6)(7)	1,565,773	1,204,679
Morgan Stanley Capital, Class A1, (Series 2007-IQ16), 5.320%, 12/12/2049	1,119,942	1,071,912
Total Commercial Mortgage Securities (identified cost $12,238,206)		11,265,582
Corporate Bonds & Notes — 16.9%
Banks — 7.0%
Bank of America Corp., 4.500%, 8/1/2010 (1)	1,500,000	1,411,394
GMAC LLC, 7.500%, 12/31/2013 (6)(7)	528,000	222,293
JP Morgan Chase & Co., 4.600%, 1/17/2011	1,500,000	1,494,364
Morgan Stanley, 5.050%, 1/21/2011	1,500,000	1,479,972
Regions Bank, Birmingham, AL, 3.250%, 12/9/2011 (1)	1,000,000	1,026,088
		5,634,111

(See Notes which are an integral part of the Financial Statements)

21

February 28, 2009 (Unaudited)

Schedule of Investments

Short-Term Income Fund (continued)

Description	Shares or Principal Amount	Value
Corporate Bonds & Notes (continued)
Diversified Financial Services — 1.7%
Lehman Brothers Holdings, Inc., 5.000%, 1/14/2011 (12)	$1,100,000	$  148,500
Merrill Lynch & Co., Inc., 6.050%, 8/15/2012	1,350,000	1,195,598
		1,344,098
Healthcare-Services — 1.3%
Roche Holdings, Inc., 4.500%, 3/1/2012 (6)(7)	1,050,000	1,068,000
Insurance — 2.1%
HSB Capital I, 2.004%, 7/15/2027 (4)	2,430,000	1,706,198
Media — 1.2%
Time Warner Cable, Inc., 5.400%, 7/2/2012	1,000,000	962,811
Real Estate — 1.2%
Duke Realty LP, 7.750%, 11/15/2009	935,000	917,857
Real Estate Investment Trusts — 1.2%
Vornado Realty LP, 4.500%, 8/15/2009	1,000,000	977,244
Telecommunications — 1.2%
Verizon Wireless Capital LLC, 5.250%, 2/1/2012 (6)(7)	1,000,000	986,439
Total Corporate Bonds & Notes (identified cost $15,624,041)		13,596,758
Mutual Funds — 7.8%
Eaton Vance Institutional Senior Loan Fund	518,134	3,527,448
Fidelity Floating Rate High Income Fund	339,074	2,743,105
Total Mutual Funds (identified cost $7,928,347)		6,270,553
U.S. Government & U.S. Government Agency Obligations — 6.5%
Federal Home Loan Mortgage Corporation — 2.8%
5.500%, 8/20/2012 (1)	$2,000,000	2,241,314
Federal National Mortgage Association — 3.7%
4.200%, 6/8/2009 (1)	3,000,000	3,027,771
Total U.S. Government & U.S. Government Agency Obligations (identified cost $5,035,951)		5,269,085
U.S. Government Agency-Mortgage Securities — 1.8%
Federal Home Loan Mortgage Corporation — 0.0%
9.000%, 7/1/2014	737	738
11.000%, 8/1/2019	5,499	5,675
		6,413
Federal National Mortgage Association — 0.6%
7.000%, 12/1/2015	96,800	101,413
7.500%, 9/1/2015	134,408	141,249
9.500%, 12/1/2024	53,434	59,729
9.500%, 1/1/2025	36,841	41,181
9.500%, 1/1/2025	29,091	32,564
10.000%, 7/1/2020	36,673	41,268
11.000%, 12/1/2015	30,697	32,027
		449,431

Description	Principal Amount	Value
U.S. Government Agency-Mortgage Securities (continued)
Government National Mortgage Association — 1.2%
7.500%, 8/15/2037	$  866,606	$     913,604
9.000%, 12/15/2019	45,919	49,547
		963,151
Total U.S. Government Agency-Mortgage Securities
(identified cost $1,386,073)		1,418,995
Short-Term Investments — 18.8%
Collateral Pool Investment for Securities on Loan — 9.4%
(See Note 2 of the Financial Statements)		7,525,154
Federal Home Loan Bank — 0.5%
2.873%, 3/27/2009 (3)(11)	400,000	399,974
Repurchase Agreement — 8.9%
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009, to be repurchased at $7,150,168 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 8/23/2010, with a market value of $7,297,771 (at amortized cost)	7,150,043	7,150,043
Total Short-Term Investments (identified cost $15,074,367)		15,075,171
Total Investments — 109.1% (identified cost $96,612,207)		87,706,157
Other Assets and Liabilities — (9.1)%		(7,328,829	)
Total Net Assets — 100.0%		$80,377,328

Portfolio Sector Allocations*
Sector	Fund
Asset-Backed Securities	16.4%
Collateralized Mortgage Obligations	26.9
Commercial Mortgage Securities	14.0
Corporate Bonds & Notes	16.9
Mutual Funds	7.8
U.S. Government & U.S. Government Agency Obligations	6.5
U.S. Government Agency-Mortgage Securities	1.8
Other Assets & Liabilities, Net	9.7
Total	100.0%

(See Notes which are an integral part of the Financial Statements)

22

Marshall Funds

Short-Intermediate Bond Fund

Description	Principal Amount	Value
Asset-Backed Securities —0.2%
Home Equity — 0.2%
Green Tree Home Improvement Loan Trust, Class HEB1, (Series 1998-B), 7.810%, 11/15/2029	$     348,922	$       349,920
Total Asset-Backed Securities (identified cost $349,703)		349,920
Collateralized Mortgage Obligations — 28.5%
Federal Home Loan Mortgage Corporation — 1.6%
5.000%, 10/15/2029, (Series 2745-AY)	605,000	617,696
5.500%, 10/15/2035, (Series 3058-WC)	1,953,427	1,966,798
		2,584,494
Federal National Mortgage Association — 0.8%
5.500%, 11/25/2035, (Series 2005-100-DA)	1,205,719	1,215,627
Private Sponsor — 26.1%
Banc of America Funding Corp., Class 1A3, (Series 2007-C), 5.758%, 5/20/2036 (4)	7,202,323	5,027,906
Chase Mortgage Finance Corp., Class 7A1, (Series 2007-A2), 5.886%, 7/25/2037 (4)	3,190,711	2,366,257
Countrywide Alternative Loan Trust, Class 2A14, (Series 2006-41CB), 6.000%, 1/25/2037	2,431,528	1,695,033
CS First Boston Mortgage Securities Corp., Class 1A3, (Series 2003-11), 4.500%, 6/25/2033	510,475	501,027
GSR Mortgage Loan Trust, Class 2A8, (Series 2005-5F), 5.500%, 6/25/2035	4,000,000	3,263,596
JP Morgan Alternative Loan Trust, Class 12A1, (Series 2007-A2), 0.674%, 6/25/2037 (4)	6,196,849	2,218,596
JP Morgan Mortgage Trust, Class 2A1, (Series 2006-A3), 5.609%, 5/25/2036 (4)	3,596,641	2,556,859
JP Morgan Mortgage Trust, Class 2A1, (Series 2007-A2), 5.686%, 4/25/2037 (4)	5,075,352	3,511,245
JP Morgan Mortgage Trust, Class 3A3, (Series 2007-A4), 5.884%, 6/25/2037 (4)	6,577,136	4,892,106
JP Morgan Mortgage Trust, Class 4A1, (Series 2007-A2), 6.040%, 4/25/2037 (4)	5,161,806	3,499,080
JP Morgan Mortgage Trust, Class 4A1M, (Series 2007-A2), 5.790%, 4/25/2037 (4)	6,636,608	4,574,634
PHH Alternative Mortgage Trust, Class 1A1, (Series 2007-2), 0.584%, 5/25/2037 (4)	3,090,352	2,693,928
Residential Accredit Loans, Inc., Class A5, (Series 2003-QR24), 4.000%, 7/25/2033	1,922,178	1,207,930

Description	Principal Amount	Value
Collateralized Mortgage Obligations (continued)
Private Sponsor (continued)
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR7), 5.605%, 5/25/2036 (4)	$  2,726,503	$    1,856,359
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR8), 5.240%, 4/25/2036 (4)	2,722,125	1,723,059
		41,587,615
Total Collateralized Mortgage Obligations (identified cost $64,077,632)		45,387,736
Commercial Mortgage Securities — 17.3%
Private Sponsor — 17.3%
Bear Stearns Commercial Mortgage Securities, Class AM, (Series 2007-PW17), 5.915%, 6/11/2050 (4)	4,000,000	1,550,232
Citigroup Commercial Mortgage Trust, Class A2B, (Series 2008-C7), 6.096%, 12/10/2049 (4)	4,000,000	2,746,508
Citigroup Commercial Mortgage Trust, Class A4, (Series 2007-C6), 5.700%, 12/10/2049 (4)	3,000,000	1,811,247
Citigroup/Deutsche Bank Commercial Mortgage Trust, Class A4, (Series 2007-CD5), 5.886%, 11/15/2044 (4)	3,100,000	2,015,180
Credit Suisse Mortgage Capital Certificates, Class AM, (Series 2007-C5), 5.869%, 9/15/2040 (4)	6,000,000	2,016,090
Greenwich Capital Commercial Funding Corp., Class AM, (Series 2007-GG11), 5.867%, 12/10/2049 (4)	7,000,000	2,786,917
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1, (Series 2007-FL1A), 0.830%, 7/15/2019 (4)(6)(7)	3,533,100	2,688,926
Lehman Brothers Commercial Mortgage Trust, Class A1, (Series 2007-LLFA), 0.755%, 6/15/2022 (4)(6)(7)	5,480,206	4,216,377
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class A4, (Series 2007-9), 5.700%, 9/12/2049	6,000,000	3,523,098
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class AM, (Series 2006-3), 5.456%, 7/12/2046 (4)	2,000,000	772,066
Wachovia Bank Commercial Mortgage Trust, Class AM, (Series 2006-C27), 5.795%, 7/15/2045 (4)	4,000,000	1,613,592
Wachovia Bank Commercial Mortgage Trust, Class AM, (Series 2007-C34), 5.818%, 5/15/2046 (4)	5,000,000	1,886,780
Total Commercial Mortgage Securities (identified cost $49,668,786)		27,627,013

(See Notes which are an integral part of the Financial Statements)

23

February 28, 2009 (Unaudited)

Schedule of Investments

Short-Intermediate Bond Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes — 43.1%
Banks — 8.1%
Bank of America Corp., 7.800%, 9/15/2016	$  2,000,000	$    1,444,190
Bank of America Corp., 8.125%, 12/29/2049 (4)	4,000,000	1,461,800
Citigroup, Inc., 5.300%, 10/17/2012	4,000,000	3,550,972
GMAC LLC, 7.500%, 12/31/2013 (6)(7)	417,000	175,561
GMAC LLC, 8.000%, 12/31/2018 (6)(7)	501,000	120,155
Northern Rock PLC, 6.594%, 6/29/2049 (4)(6)(7)	5,000,000	968,750
Royal Bank of Scotland Group PLC, 6.990%, 10/29/2049 (4)(6)(7)	3,000,000	780,726
UBS Preferred Funding Trust I, 8.622%, 10/29/2049 (4)	7,000,000	2,526,426
Wells Fargo Capital XIII, 7.700%, 12/29/2049 (4)	4,000,000	1,948,920
		12,977,500
Beverages — 1.3%
Anheuser-Busch InBev Worldwide, Inc., 7.750%, 1/15/2019 (6)(7)	2,000,000	2,004,448
Building Materials — 4.0%
CRH America, Inc., 6.000%, 9/30/2016	4,000,000	2,859,512
CRH America, Inc., 6.950%, 3/15/2012	4,000,000	3,487,712
		6,347,224
Diversified Financial Services — 7.2%
American General Finance Corp., 5.375%, 10/1/2012	2,500,000	1,131,810
American Honda Finance Corp., 6.700%, 10/1/2013 (1)(6)(7)	3,000,000	2,982,144
Countrywide Financial Corp., 5.800%, 6/7/2012	5,000,000	4,585,415
Lehman Brothers Holdings, Inc., 6.000%, 7/19/2012 (12)	4,000,000	540,000
SLM Corp., 1.299%, 7/27/2009 (4)	2,500,000	2,327,655
		11,567,024
Insurance — 7.3%
Genworth Life Institutional Funding Trust, 5.875%, 5/3/2013 (6)(7)	4,000,000	3,093,440
HSB Capital I, 2.004%, 7/15/2027 (4)	4,000,000	2,808,556
Progressive Corp., 6.700%, 6/15/2037 (4)	7,000,000	3,808,609
Swiss Re Insurance Solutions Holding Corp., 7.500%, 6/15/2010	2,000,000	1,971,750
		11,682,355
Iron/Steel — 1.0%
ArcelorMittal, 5.375%, 6/1/2013	2,000,000	1,643,924

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Media — 7.1%
Comcast Corp., 4.950%, 6/15/2016	$  4,000,000	$    3,580,568
Thomson Reuters Corp., 6.500%, 7/15/2018	2,000,000	1,877,396
Time Warner Cable, Inc., 5.400%, 7/2/2012	3,000,000	2,888,433
Time Warner Cable, Inc., 6.200%, 7/1/2013 (1)	3,000,000	2,908,035
		11,254,432
Oil & Gas — 1.3%
Weatherford International, Ltd., 9.625%, 3/1/2019	2,000,000	2,046,236
Real Estate Investment Trusts — 1.2%
iStar Financial, Inc., 5.850%, 3/15/2017	6,000,000	1,862,052
Telecommunications — 4.6%
AT&T, Inc., 5.800%, 2/15/2019 (1)	2,000,000	1,945,800
Rogers Communications, Inc., 6.800%, 8/15/2018	2,000,000	2,005,690
Verizon Wireless Capital LLC, 8.500%, 11/15/2018 (6)(7)	3,000,000	3,382,833
		7,334,323
Total Corporate Bonds & Notes (identified cost $102,555,128)		68,719,518
U.S. Government Agency-Mortgage Securities — 30.0%
Federal Home Loan Mortgage Corporation — 0.3%
7.500%, 2/1/2031	308,758	331,942
7.500%, 6/1/2031	101,114	108,595
		440,537
Federal National Mortgage Association — 29.6%
5.500%, 3/15/2039 (5)	20,000,000	20,490,620
6.000%, 3/12/2039 (5)	25,000,000	25,824,225
6.500%, 10/1/2031	498,831	526,145
7.000%, 12/1/2015	358,426	375,507
		47,216,497
Government National Mortgage Association — 0.1%
7.000%, 3/15/2032	254,202	273,196
Total U.S. Government Agency-Mortgage Securities
(identified cost $47,595,610)		47,930,230
Short-Term Investments — 2.9%
Collateral Pool Investment for Securities on Loan — 1.2%
(See Note 2 of the Financial Statements)		1,937,853

(See Notes which are an integral part of the Financial Statements)

24

Marshall Funds

Short-Intermediate Bond Fund (continued)

Description	Principal Amount	Value
Short-Term Investments (continued)
Repurchase Agreement — 1.7%
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009, to be repurchased at $2,611,516 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 8/23/2010, with a market value of $2,669,531 (at amortized cost)	$  2,611,471	$      2,611,471
Total Short-Term Investments (identified cost $4,549,324)		4,549,324
Total Investments — 122.0% (identified cost $268,796,183)		194,563,741
Other Assets and Liabilities — (22.0)%		(35,059,317	)
Total Net Assets — 100.0%		$159,504,424

Portfolio Sector Allocations*
Sector	Fund
Asset-Backed Securities	0.2%
Collateralized Mortgage Obligations	28.5
Commercial Mortgage Securities	17.3
Corporate Bonds & Notes	43.1
U.S. Government Agency-Mortgage Securities	30.0
Other Assets & Liabilities, Net	(19.1)
Total	100.0%

Intermediate Tax-Free Fund

Description/Credit Ratings (8)	Principal Amount	Value
Municipals — 97.1%
Alabama — 1.4%
Alabama State Board of Education, Education, Revenue Bonds, 4.375%, 10/1/2017 NR/A2	$   200,000	$       196,280
Alabama State Board of Education, Education, Revenue Bonds, 4.500%, 10/1/2018 NR/A2	210,000	204,729
Alabama State Board of Education, Education, Revenue Bonds, 4.750%, 10/1/2019 NR/A2; Call Date 10/1/2018	220,000	214,284
Alabama State Board of Education, Education, Revenue Bonds, 5.000%, 10/1/2020 NR/A2; Call Date 10/1/2018	230,000	223,689
Alabama State Board of Education, Education, Revenue Bonds, 5.250%, 10/1/2021 NR/A2; Call Date 10/1/2018	240,000	234,595

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Alabama (continued)
Alabama State Board of Education, Education, Revenue Bonds, 5.375%, 10/1/2022 NR/A2; Call Date 10/1/2018	$   255,000	$       247,932
County of Jefferson, General Obligation, Revenue Bonds, FSA, 5.500%, 2/15/2020 AAA/Aa3; Call Date 2/15/2010	100,000	78,076
County of Jefferson, General, Revenue Bonds, 5.250%, 1/1/2016 BBB/B3; Call Date 1/1/2014	50,000	28,457
		1,428,042
Alaska — 1.0%
Alaska Housing Finance Corp., Single Family Housing, Revenue Bonds, GO, 5.350%, 12/1/2013 AAA/Aaa; Call Date 4/2/2009	115,000	114,995
Alaska Industrial Development & Export Authority, Development, Revenue Bonds, FSA, 1.110%, 4/1/2034 AAA/Aa3; Call Date 3/5/2009 (4)	1,000,000	867,150
		982,145
Arizona — 7.3%
Arizona State University, Higher Education, Revenue Bonds, 6.250%, 7/1/2028 AA-/A1; Call Date 7/1/2018	550,000	585,508
Gila County Unified School District No. 10-Payson, School District, GO UT, 3.000%, 7/1/2019 NR/A2; Call Date 7/1/2018 (4)	500,000	513,535
Gila County Unified School District No. 10-Payson, School District, GO UT, 3.000%, 7/1/2020 NR/A2; Call Date 7/1/2018 (4)	600,000	611,634
Maricopa County Elementary School District No. 21-Murphy, School District, GO UT, 8.000%, 7/1/2024 NR/Baa2; Call Date 7/1/2019	300,000	312,348
Maricopa County Elementary School District No. 28-Kyrene Elementary, School District, GO UT, MBIA, 5.000%, 7/1/2013 NR/Aa2	125,000	139,087
Maricopa County Elementary School District No. 8-Osborn, School District, GO UT, 6.000%, 7/1/2024 A/NR; Call Date 7/1/2016	300,000	298,188
Maricopa County Industrial Development Authority, Medical, Revenue Bonds, 5.000%, 7/1/2016 A/A2; Call Date 4/2/2009	90,000	90,188

(See Notes which are an integral part of the Financial Statements)

25

February 28, 2009 (Unaudited)

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Arizona (continued)
Maricopa County Industrial Development Authority, Single Family Housing, Revenue Bonds, FNMA/GNMA/FHLMC, 5.450%, 3/1/2039 NR/Aaa; Call Date 9/1/2016 (4)(9)	$     87,911	$         77,994
Navajo County Pollution Control Corp., Pollution, Revenue Bonds, AMBAC, 6.999%, 6/1/2034 A/Baa1; Call Date 3/6/2009 (4)	850,000	850,000
Phoenix Civic Improvement Corp. District, Facilities, Revenue Bonds, MBIA, 0.000%, 7/1/2013 AA/A1	1,160,000	855,999
Phoenix Civic Improvement Corp., Water, Revenue Bonds, MBIA, 5.250%, 7/1/2016 AAA/Aa3	210,000	243,701
Pima County Industrial Development Authority, Development, Revenue Bonds, 6.375%, 7/1/2028 NR/Baa3; Call Date 7/1/2018	335,000	258,834
Rio Nuevo Multipurpose Facilities District, Facilities, Revenue Bonds, Assured Guaranty Corp., 5.000%, 7/15/2015 AAA/Aa2	1,400,000	1,482,754
Scottsdale Industrial Development Authority, Medical, Revenue Bonds, FSA, 4.000%, 9/1/2045 AAA/Aa3; Call Date 3/3/2009 (4)	500,000	500,000
Vistancia Community Facilities District, Facilities, GO UT, 5.500%, 7/15/2020 NR/Baa1; Call Date 7/15/2015	500,000	396,645
		7,216,415
Arkansas — 0.1%
North Little Rock Health Facilities Board, Medical, Revenue Bonds, CIFG, 5.000%, 12/1/2015 A+/WR	50,000	54,342
California — 9.4%
ABC Unified School District, School District, GO UT, MBIA, 5.000%, 2/1/2021 AA-/Baa1	500,000	484,375
Alisal Union School District, School District, GO UT, Assured Guaranty Corp., 0.000%, 8/1/2031 AAA/Aa2	2,470,000	555,602
California Pollution Control Financing Authority, Pollution, Revenue Bonds, 4.000%, 6/1/2010 BBB/A-2/NR (4)(9)	500,000	476,355
California Pollution Control Financing Authority, Pollution, Revenue Bonds, 4.500%, 6/1/2010 BBB/A-2/NR (4)(9)	500,000	479,250

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
California (continued)
California Statewide Communities Development Authority, Medical, Revenue Bonds, 5.000%, 8/15/2021 A+/A1; Call Date 8/15/2016	$     80,000	$         78,402
City & County of San Francisco, General Obligation, GO UT, 4.625%, 6/15/2030 AA/Aa2; Call Date 6/15/2015	350,000	325,959
East Side Union High School District-Santa Clara County, School District, GO UT, FSA, 0.000%, 8/1/2029 AAA/Aa3	570,000	171,530
Fresno Unified School District, School District, GO UT, MBIA, 4.600%, 2/1/2016 AA-/Baa1	25,000	25,488
Fresno Unified School District, School District, GO UT, MBIA, 5.300%, 2/1/2014 AA-/Baa1	290,000	307,835
Fresno Unified School District, School District, GO UT, MBIA, 5.800%, 2/1/2014 AA-/Baa1	125,000	135,454
Fresno Unified School District, School District, GO UT, MBIA, 6.000%, 8/1/2026 AA-/Baa1	1,400,000	1,444,170
Oxnard School District, School District, GO UT, MBIA, 5.750%, 8/1/2022 AA-/Baa1; Call Date 2/1/2022	415,000	438,979
Pleasant Valley School District-Ventura County, School District, GO UT, MBIA, 5.850%, 2/1/2020 AA-/Baa1	50,000	53,105
Pomona Unified School District, School District, GO UT, MBIA, 6.300%, 2/1/2016 AA-/Baa1	50,000	55,228
Pomona Unified School District, School District, GO UT, MBIA, 6.550%, 8/1/2029 AA-/Baa1	200,000	200,182
Richmond Joint Powers Financing Authority, Facilities, Revenue Bonds, AMBAC, 4.125%, 11/25/2009 AA/A-1/Baa1; Call Date 3/2/2009 (4)	650,000	649,213
School Facilities Financing Authority, Facilities, Revenue Bonds, FSA, 0.000%, 8/1/2025 NR/Aa3	1,510,000	584,143
Sierra View Local Health Care District, Medical, Revenue Bonds, 4.700%, 7/1/2016 NR/NR	250,000	231,805
Sierra View Local Health Care District, Medical, Revenue Bonds, 5.250%, 7/1/2022 NR/NR; Call Date 7/1/2017	1,000,000	868,870

(See Notes which are an integral part of the Financial Statements)

26

Marshall Funds

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
California (continued)
Sierra View Local Health Care District, Medical, Revenue Bonds, 5.250%, 7/1/2023 NR/NR; Call Date 7/1/2017	$   250,000	$       214,090
Sweetwater Union High School District, Education, Certificate of Participation, MBIA, 4.000%, 9/1/2016 AA-/Baa1; Call Date 9/1/2015	50,000	50,801
Vallejo City Unified School District, School District, GO UT, MBIA, 5.000%, 2/1/2013 AA-/Baa1	100,000	101,233
Vallejo City Unified School District, School District, GO UT, MBIA, 5.400%, 2/1/2015 AA-/Baa1	275,000	278,451
Vallejo City Unified School District, School District, GO UT, MBIA, 5.900%, 2/1/2017 AA-/Baa1	60,000	60,980
Vallejo City Unified School District, School District, GO UT, MBIA, 5.900%, 2/1/2018 AA-/Baa1	50,000	50,445
Vallejo City Unified School District, School District, GO UT, MBIA, 5.900%, 8/1/2018 AA-/Baa1	350,000	353,244
Vallejo City Unified School District, School District, GO UT, MBIA, 5.900%, 8/1/2025 AA-/Baa1	725,000	675,606
		9,350,795
Colorado — 3.6%
Colorado Educational & Cultural Facilities Authority, Education, Revenue Bonds, 6.000%, 4/1/2021 NR/Baa2; Call Date 4/1/2011	225,000	191,790
Colorado Educational & Cultural Facilities Authority, Higher Education, Revenue Bonds, XLCA, 5.250%, 6/1/2024 A/Baa2; Call Date 6/1/2014	850,000	749,606
Colorado Higher Education, Education, Certificate of Participation, 5.500%, 11/1/2027 AA-/Aa3; Call Date 11/1/2018	250,000	257,725
County of El Paso, General, Certificate of Participation, AMBAC, 5.375%, 12/1/2019 AA-/Baa1; Call Date 12/1/2012	75,000	77,938
County of Pueblo, Pollution, Revenue Bonds, AMBAC, 5.100%, 1/1/2019 A/Baa1; Call Date 4/2/2009	750,000	670,028
Interlocken Metropolitan District, General Obligation, GO UT, RADIAN, 5.750%, 12/15/2019 BBB+/NR; Call Date 12/15/2009	400,000	345,640

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Colorado (continued)
Jefferson County School District R-001, School District, GO UT, FSA, 5.000%, 12/15/2024 AAA/Aa3; Call Date 12/15/2014	$   200,000	$       209,168
Public Authority for Colorado Energy, Utilities, Revenue Bonds, 5.750%, 11/15/2018 A+/A1	500,000	439,670
Public Authority for Colorado Energy, Utilities, Revenue Bonds, 6.125%, 11/15/2023 A+/A1	500,000	422,115
Rio Blanco County School District No. Re-1 Meeker, School District, GO UT, State Aid Withholding, 0.000%, 12/1/2018 AA-/Aa3	265,000	169,022
		3,532,702
Connecticut — 2.1%
State of Connecticut, General, Revenue Bonds, 4.250%, 2/1/2015 AA/A1	1,900,000	2,031,917
Florida — 10.6%
Citizens Property Insurance, General, Revenue Bonds, GO, 5.000%, 6/1/2011 A+/A2	650,000	660,413
City of Gulf Breeze, Facilities, Revenue Bonds, 5.000%, 12/1/2020 NR/A1/VMIG1 (4)	500,000	500,685
City of Gulf Breeze, Facilities, Revenue Bonds, 5.000%, 12/1/2020 NR/A1/VMIG1 (4)	450,000	450,455
County of Miami-Dade, Utilities, Revenue Bonds, BHAC, 6.000%, 10/1/2023 AAA/Aaa; Call Date 10/1/2018	1,000,000	1,133,080
Florida Hurricane Catastrophe Fund Finance Corp., General, Revenue Bonds, 5.000%, 7/1/2013 AA-/Aa3	500,000	511,470
Florida Hurricane Catastrophe Fund Finance Corp., General, Revenue Bonds, 5.000%, 7/1/2014 AA-/Aa3	800,000	808,512
Florida Municipal Power Agency, Power, Revenue Bonds, 5.500%, 10/1/2019 NR/A1	250,000	268,665
Florida State Board of Education, Education, Revenue Bonds, MBIA, 5.000%, 7/1/2019 AAA/A2; Call Date 7/1/2012	2,000,000	2,048,260
Fort Pierce, General, Revenue Bonds, Assured Guaranty Corp., 5.875%, 9/1/2028 AAA/Aa2; Call Date 9/1/2018	500,000	528,485
Greater Orlando Aviation Authority, Airport, Revenue Bonds, FSA, 5.000%, 10/1/2019 AAA/Aa3; Call Date 10/1/2017 (9)	500,000	478,125

(See Notes which are an integral part of the Financial Statements)

27

February 28, 2009 (Unaudited)

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Florida (continued)
Highlands County Health Facilities Authority, Medical, Revenue Bonds, 6.100%, 11/15/2013 A+/A1 (4)	$   750,000	$       771,442
Hillsborough County Industrial Development Authority, Pollution, Revenue Bonds, 5.650%, 5/15/2018 BBB-/Baa2 (4)	500,000	492,565
Hillsborough County Industrial Development Authority, Pollution, Revenue Bonds, AMBAC, 5.000%, 3/15/2012 A/Baa1 (4)	650,000	647,107
Orange County Health Facilities Authority, Medical, Revenue Bonds, 5.250%, 10/1/2035 A/A2; Call Date 10/1/2018	300,000	231,810
Port St. Lucie, General, Certificate of Participation, Assured Guaranty Corp., 6.250%, 9/1/2027 AAA/Aa2; Call Date 9/1/2018	500,000	520,685
Putnam County Development Authority, Pollution, Revenue Bonds, AMBAC, 5.350%, 5/1/2018 A/Baa1 (4)	445,000	456,303
		10,508,062
Georgia — 1.3%
Main Street Natural Gas, Inc., Utilities, Revenue Bonds, 5.250%, 9/15/2018 A+/A1	250,000	204,407
South Georgia Governmental Services Authority, Facilities, Revenue Bonds, MBIA, 5.000%, 1/1/2020 AA-/WR; Call Date 1/1/2014	500,000	523,190
Spalding County, Utilities, Revenue Bonds, 6.125%, 9/1/2028 NR/A2; Call Date 9/1/2018	500,000	531,990
		1,259,587
Hawaii — 0.1%
State of Hawaii, Airport, Revenue Bonds, MBIA, 5.750%, 7/1/2016 AA-/A2; Call Date 7/1/2011 (9)	100,000	101,993
Idaho — 0.5%
Boise-Kuna Irrigation District, Utilities, Revenue Bonds, 7.375%, 6/1/2034 NR/A3; Call Date 6/1/2018	500,000	520,110
Illinois — 5.2%
Illinois Finance Authority, General, Revenue Bonds, AMBAC, 5.500%, 2/1/2040 A+/A2; Call Date 2/1/2018	75,000	57,735
Illinois Finance Authority, General, Revenue Bonds, AMBAC, 6.250%, 2/1/2033 A+/A2; Call Date 2/1/2018	125,000	112,129

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Illinois (continued)
Illinois Finance Authority, General, Revenue Bonds, Assured Guaranty Corp., 5.250%, 8/15/2019 AAA/NR	$   250,000	$       259,568
Illinois Finance Authority, Medical, Revenue Bonds, GO, 5.000%, 7/1/2016 BBB-/NR; Call Date 7/1/2014	730,000	628,858
Illinois Finance Authority, Pollution, Revenue Bonds, 5.050%, 1/1/2010 BBB/NR (4)(9)	230,000	228,556
Illinois Health Facilities Authority, Medical, Revenue Bonds, 5.250%, 8/15/2018 A-/NR; Call Date 4/2/2009	350,000	331,131
Illinois Municipal Electric Agency, Power, Revenue Bonds, MBIA, 5.250%, 2/1/2019 AA-/A1; Call Date 2/1/2017	1,000,000	1,071,390
Kendall, Kane & Will Counties High School District No. 18, School District, GO UT, FSA, 5.250%, 10/1/2016 NR/Aa3; Call Date 10/1/2014	925,000	1,023,087
University of Illinois, Higher Education, Revenue Bonds, AMBAC, 5.250%, 4/1/2013 AA-/Aa3	1,060,000	1,187,529
Will, Grundy, Livingston, Cook, Kendall, LaSalle & Kankakee Counties Community College District No. 525, Higher Education, GO UT, 5.750%, 6/1/2028 AA/NR; Call Date 6/1/2018	250,000	261,647
		5,161,630
Indiana — 1.2%
Carmel Redevelopment District, Development, Revenue Notes, 5.875%, 2/1/2010 NR/NR; Call Date 5/1/2009	1,000,000	1,000,010
Indiana Development Finance Authority, Pollution, Revenue Bonds, 4.700%, 10/1/2015 BBB/NR; Call Date 10/1/2015 (4)(9)	250,000	222,523
		1,222,533
Kansas — 3.1%
Sedgwick & Shawnee Counties, Single Family Housing, Revenue Bonds, GNMA/FNMA, 5.450%, 6/1/2027 NR/Aaa; Call Date 6/1/2013 (9)	1,020,000	1,013,982
Sedgwick & Shawnee Counties, Single Family Housing, Revenue Bonds, GNMA/FNMA COLL, 5.650%, 12/1/2036 NR/Aaa; Call Date 12/1/2014 (9)	1,020,000	1,015,492

(See Notes which are an integral part of the Financial Statements)

28

Marshall Funds

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Kansas (continued)
Sedwick & Shawnee Counties, Single Family Housing, Revenue Bonds, FNMA/GNMA/FHLMC, 5.250%, 12/1/2038 NR/Aaa; Call Date 12/1/2016 (9)	$1,065,000	$    1,043,753
		3,073,227
Kentucky — 0.6%
Kentucky Economic Development Finance Authority, Development, Revenue Bonds, Assured Guaranty Corp., 0.000%, 12/1/2014 AAA/Aa2	300,000	234,585
Kentucky Economic Development Finance Authority, Development, Revenue Bonds, Assured Guaranty Corp., 5.750%, 12/1/2028 AAA/Aa2; Call Date 6/1/2018	100,000	100,917
Kentucky State Property & Buildings Commission, Facilities, Revenue Bonds, MBIA, 5.000%, 8/1/2018 AA-/Aa3	205,000	226,004
		561,506
Louisiana — 2.9%
Jefferson Parish Finance Authority, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 4.400%, 12/1/2031 NR/Aaa; Call Date 6/1/2017	130,000	126,998
Louisiana Housing Finance Agency, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 6.550%, 6/1/2040 NR/Aaa; Call Date 6/1/2018	1,500,000	1,552,470
Louisiana Public Facilities Authority, Facilities, Revenue Bonds, 7.000%, 12/1/2011 BBB/Baa1; Call Date 12/1/2011 (4)	500,000	509,125
State of Louisiana, General Obligation, GO UT, CIFG, 5.000%, 7/15/2017 A+/A1; Call Date 7/15/2016	650,000	712,342
		2,900,935
Maryland — 0.7%
Maryland Community Development Administration, Single Family Housing, Revenue Bonds, 5.500%, 1/1/2010 NR/Aa2; Call Date 3/18/2009	735,000	739,947
Massachusetts — 1.4%
Massachusetts Municipal Wholesale Electric Co., Power, Revenue Bonds, MBIA, 0.299%, 7/1/2018 AA-/A3; Call Date 3/3/2009 (4)	1,875,000	1,406,250

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Michigan — 0.8%
Michigan State Hospital Finance Authority, Medical, Revenue Bonds, 5.000%, 5/15/2011 NR/Baa3	$   150,000	$       145,269
Pontiac, General Obligation, GO, CIFG, 5.000%, 5/1/2017 A+/NR; Call Date 5/1/2016	300,000	305,580
Warren Consolidated School District, School District, GO UT, FSA, 5.000%, 5/1/2015 AAA/Aa3	325,000	370,302
		821,151
Minnesota — 1.3%
City of Minneapolis, Medical, Revenue Bonds, Assured Guaranty Corp., 6.500%, 11/15/2038 AAA/Aa2; Call Date 11/15/2018	1,000,000	1,070,400
St. Paul Housing & Redevelopment Authority, Housing, Revenue Bonds, 5.250%, 5/15/2036 BBB/Baa1; Call Date 11/15/2016	300,000	222,390
		1,292,790
Mississippi — 1.8%
Mississippi Home Corp., Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 6.750%, 6/1/2039 NR/Aaa; Call Date 6/1/2018	750,000	777,187
Rankin County School District, School District, GO UT, FSA, 5.000%, 10/1/2014 AAA/Aa3	900,000	1,018,395
		1,795,582
Missouri — 3.9%
Carroll County Public Water Supply District No. 1, Water, Revenue Bonds, 4.625%, 3/1/2012 SP-1+/NR; Call Date 4/2/2009	250,000	250,155
Cass County, Medical, Revenue Bonds, 5.000%, 5/1/2015 NR/NR	500,000	448,530
Cass County, Medical, Revenue Bonds, 5.625%, 5/1/2038 NR/NR; Call Date 11/1/2016	500,000	344,955
Missouri Development Finance Board, Development, Revenue Bonds, 6.000%, 4/1/2027 A+/NR; Call Date 4/1/2013	750,000	753,450
Missouri Development Finance Board, Development, Revenue Bonds, 6.750%, 4/1/2029 A+/NR; Call Date 10/1/2013	200,000	202,016
Missouri Housing Development Commission, Single Family Housing, Revenue Bonds, GNMA/FNMA COLL, 6.850%, 3/1/2028 AAA/NR; Call Date 4/2/2009 (9)	360,000	360,468

(See Notes which are an integral part of the Financial Statements)

29

February 28, 2009 (Unaudited)

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Missouri (continued)
Missouri Housing Development Commission, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 5.700%, 9/1/2038 AAA/NR; Call Date 9/1/2017 (9)	$   250,000	$       252,077
Missouri State Environmental Improvement & Energy Resources Authority, General, Revenue Bonds, 5.750%, 1/1/2029 NR/Aaa; Call Date 1/1/2019	750,000	818,130
Riverside Industrial Development Authority, General, Revenue Bonds, ACA, 4.500%, 5/1/2011 A/NR	400,000	389,960
		3,819,741
Nebraska — 0.2%
City of O’Neill, General, Revenue Bonds, 6.250%, 9/1/2012 NR/NR	245,000	244,988
Nevada — 1.3%
Nevada Housing Division, Single Family Housing, Revenue Bonds, 5.400%, 4/1/2031 AAA/Aaa; Call Date 4/1/2010 (9)	355,000	353,946
Nevada Housing Division, Single Family Housing, Revenue Bonds, FHA-Insured Mortgage, 5.550%, 4/1/2031 AAA/Aaa; Call Date 10/1/2009 (9)	400,000	394,492
Reno-Sparks Indian Colony, General, Revenue Bonds, 4.250%, 6/1/2014 NR/NR	515,000	488,158
		1,236,596
New Hampshire — 0.7%
New Hampshire Health & Education Facilities Authority, Medical, Revenue Bonds, 5.000%, 5/1/2013 NR/A3	105,000	107,124
New Hampshire Health & Education Facilities Authority, Medical, Revenue Bonds, AMBAC, 5.875%, 10/1/2016 A/A3; Call Date 4/2/2009	600,000	600,576
		707,700
New Jersey — 0.5%
Delaware Township School District, School District, GO UT, FSA SCH BD RES FD, 4.250%, 1/15/2018 NR/Aa3	250,000	274,975
New Jersey State Housing & Mortgage Finance Agency, Single Family Housing, Revenue Bonds, 5.000%, 10/1/2033 AA/Aa2; Call Date 4/1/2013 (9)	250,000	245,150
		520,125

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
New York — 1.8%
County of Monroe, General Obligation, GO UT, MBIA, 6.000%, 3/1/2015 AA-/Baa1	$   225,000	$       245,014
Metropolitan Transportation Authority, Transportation, Revenue Bonds, 5.000%, 11/15/2016 A/A2	1,250,000	1,347,500
New York State Dormitory Authority, Higher Education, Revenue Bonds, Assured Guaranty Corp., 5.000%, 7/1/2016 AAA/Aa2	200,000	221,268
		1,813,782
North Carolina — 1.1%
North Carolina Eastern Municipal Power Agency, Power, Revenue Bonds, 6.000%, 1/1/2022 BBB+/Baa1	50,000	53,319
North Carolina Eastern Municipal Power Agency, Power, Revenue Bonds, AMBAC, 5.000%, 1/1/2016 A/Baa1	500,000	517,195
North Carolina Eastern Municipal Power Agency, Power, Revenue Bonds, Assured Guaranty Corp., 6.000%, 1/1/2019 AAA/Aa2	500,000	533,995
		1,104,509
North Dakota — 3.1%
City of Fargo, Medical, Revenue Bonds, FSA, 5.750%, 6/1/2012 AAA/Aa3; Call Date 6/1/2010	2,940,000	3,046,575
Ohio — 2.1%
Dublin City School District, School District, GO UT, 0.000%, 12/1/2017 AA+e/Aa1e (5)	390,000	270,258
Dublin City School District, School District, GO UT, 0.000%, 12/1/2018 AA+e/Aa1e (5)	400,000	260,776
Mahoning County Career & Technical Center Board, Higher Education, Certificate of Participation, 6.250%, 12/1/2036 AA-/NR; Call Date 12/1/2011	1,250,000	1,258,588
Richland County, General Obligation, GO, Assured Guaranty Corp., 6.000%, 12/1/2028 NR/Aa2; Call Date 12/1/2018	250,000	266,095
		2,055,717
Oklahoma — 2.2%
Cleveland County Justice Authority, General, Revenue Bonds, 5.750%, 3/1/2029 Ae/NR; Call Date 3/1/2015 (5)	1,000,000	983,670

(See Notes which are an integral part of the Financial Statements)

30

Marshall Funds

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Oklahoma (continued)
Oklahoma Housing Finance Agency, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 6.500%, 9/1/2038 NR/Aaa; Call Date 9/1/2018	$1,175,000	$    1,234,819
		2,218,489
Oregon — 1.7%
Deschutes & Jefferson Counties School District No. 2J Redmond, School District, GO UT, School Bond Gty, 0.000%, 6/15/2019 NR/Aa2	1,250,000	830,237
Salem-Keizer School District No. 24J, School District, GO UT, School Bond Gty, 0.000%, 6/15/2021 AAe/Aa2	1,500,000	816,930
		1,647,167
Pennsylvania — 2.9%
Allegheny County Hospital Development Authority, Medical, Revenue Bonds, 5.000%, 6/15/2018 AA-/Aa3; Call Date 6/15/2014	750,000	769,170
Pennsylvania Industrial Development Authority, Development, Revenue Bonds, AMBAC, 5.500%, 7/1/2014 A/A3; Call Date 7/1/2012	1,925,000	2,077,672
		2,846,842
Puerto Rico — 0.1%
Puerto Rico Housing Finance Authority, Housing, Revenue Bonds, GNMA/FNMA/FHLMC COLL, 3.125%, 12/1/2033 AAA/Aaa; Call Date 6/1/2013 (9)	75,000	74,441
South Carolina — 1.5%
South Carolina State Housing Finance & Development Authority, Housing, Revenue Bonds, AMBAC, 5.000%, 7/1/2035 NR/Aa1; Call Date 1/1/2015 (9)	500,000	480,220
South Carolina State Public Service Authority, Utilities, Revenue Bonds, 5.500%, 1/1/2038 AA-/Aa2; Call Date 1/1/2019	1,000,000	1,019,690
		1,499,910
South Dakota — 1.0%
South Dakota Health & Educational Facilities Authority, Medical, Revenue Bonds, AMBAC, 5.000%, 8/1/2022 A/Baa1; Call Date 8/1/2017	980,000	1,026,530
Tennessee — 0.5%
Putnam County, General Obligation, GO UT, MBIA, 5.250%, 4/1/2013 NR/A1	150,000	168,483
Shelby County Health Educational & Housing Facilities Board, Medical, Revenue Bonds, 4.000%, 6/1/2015 A/A2	100,000	93,642

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Tennessee (continued)
Tennessee Energy Acquisition Corp., Utilities, Revenue Bonds, 5.000%, 9/1/2012 A/NR/Ba1	$   200,000	$       181,522
		443,647
Texas — 9.3%
City of Dallas, Facilities, Revenue Bonds, Assured Guaranty Corp., 5.250%, 8/15/2038 AAA/Aa2; Call Date 8/1/2019	200,000	193,592
City of San Antonio, Utilities, Revenue Bonds, 5.000%, 2/1/2019 AA/Aa1; Call Date 2/1/2015	1,900,000	2,029,941
Conroe, General Obligation, GO, MBIA, 5.500%, 3/1/2022 AA-/A1; Call Date 3/1/2017	100,000	107,903
Dallas-Fort Worth International Airport Facilities Improvement Corp., Airport, Revenue Bonds, MBIA, 5.875%, 11/1/2017 AA-/A1; Call Date 11/1/2011 (9)	950,000	968,962
Dallas-Fort Worth International Airport Facilities Improvement Corp., Airport, Revenue Bonds, MBIA, 6.000%, 11/1/2032 AA-/A1; Call Date 11/1/2009 (9)	50,000	48,104
Dallas-Fort Worth International Airport Facilities Improvement Corp., Airport, Revenue Bonds, XLCA, 6.125%, 11/1/2018 A+/A1; Call Date 11/1/2009 (9)	1,000,000	1,005,180
Forney Independent School District, School District, GO UT, PSF, 6.000%, 8/15/2037 AAA/NR; Call Date 8/15/2018	390,000	418,158
Lufkin Health Facilities Development Corp., Medical, Revenue Bonds, 4.750%, 2/15/2017 BBB+/Baa2	325,000	271,856
North Texas Tollway Authority, Transportation, Revenue Bonds, 5.000%, 1/1/2010 A-/A2; Call Date 1/1/2010 (4)	450,000	454,981
North Texas Tollway Authority, Transportation, Revenue Bonds, 5.750%, 1/1/2038 BBB+/A3; Call Date 1/1/2018	150,000	137,412
North Texas Tollway Authority, Transportation, Revenue Bonds, 6.125%, 1/1/2031 BBB+/A3; Call Date 1/1/2016	300,000	296,238
North Texas Tollway Authority, Transportation, Revenue Bonds, Assured Guaranty Corp., 0.000%, 1/1/2015 AAA/Aa2; Call Date 1/1/2025	500,000	311,455
North Texas Tollway Authority, Transportation, Revenue Bonds, Assured Guaranty Corp., 0.000%, 1/1/2028 AAA/Aa2	150,000	47,871

(See Notes which are an integral part of the Financial Statements)

31

February 28, 2009 (Unaudited)

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Texas (continued)
North Texas Tollway Authority, Transportation, Revenue Bonds, Assured Guaranty Corp., 5.750%, 1/1/2038 AAA/Aa2; Call Date 1/1/2019	$1,500,000	$    1,546,410
Port Beaumont Navigation District, Transportation, Revenue Bonds, 6.500%, 9/1/2029 NR/A2; Call Date 9/1/2018	250,000	256,400
Port of Houston Authority, General Obligation, GO UT, MBIA, 5.100%, 10/1/2026 AAA/Aa1; Call Date 10/1/2011 (9)	350,000	329,735
Potter County Industrial Development Corp., Development, Revenue Bonds, AMBAC, 5.750%, 9/1/2016 A/Baa1; Call Date 4/2/2009	235,000	234,575
Sabine River Authority, Pollution, Revenue Bonds, MBIA, 4.950%, 3/1/2018 AA/Baa1	50,000	50,252
Sam Rayburn Municipal Power Agency, Power, Revenue Bonds, RADIAN, 5.750%, 10/1/2021 BBB+/A3; Call Date 10/1/2012	615,000	542,922
		9,251,947
Utah — 1.4%
Grand County School District, School District, GO UT, School Bond Gty, 5.250%, 7/1/2026 NR/Aaa; Call Date 7/1/2018	500,000	526,325
Salt Lake Valley Fire Service Area, General, Revenue Bonds, 5.250%, 4/1/2021 NR/Aa3; Call Date 4/1/2018	300,000	321,918
Utah Housing Corp., Single Family Housing, Revenue Bonds, 5.400%, 7/1/2039 AAA/Aaa; Call Date 1/1/2017 (9)	600,000	536,376
		1,384,619
Virginia — 2.0%
Louisa Industrial Development Authority, Pollution, Revenue Bonds, 5.375%, 12/2/2013 A-e/Baa1e (4)	400,000	410,820
Suffolk Redevelopment & Housing Authority, Multi-Family Housing, Revenue Bonds, 4.850%, 7/1/2011 NR/Aaa (4)	1,500,000	1,536,675
		1,947,495
Washington — 1.0%
King County Housing Authority, Housing, Revenue Bonds, 5.200%, 5/1/2028 AAA/NR; Call Date 11/1/2018	460,000	465,189

Description/Credit Ratings (8)	Shares or Principal Amount	Value
Municipals (continued)
Washington (continued)
Washington Health Care Facilities Authority, Medical, Revenue Bonds, FHA-Insured Mortgage, 6.250%, 8/1/2028 AA-/NR; Call Date 8/1/2018	$   500,000	$        506,700
		971,889
West Virginia — 0.8%
West Virginia State Hospital Finance Authority, Medical, Revenue Bonds, AMBAC, 5.000%, 6/1/2018 A+/A2; Call Date 6/1/2016	800,000	830,440
Wisconsin — 1.6%
Kimberly Area School District, School District, GO UT, MBIA, 5.375%, 3/1/2010 NR/A1	405,000	422,192
State of Wisconsin, General Obligation, GO UT, MBIA, 4.500%, 5/1/2015 AA/Aa3 (9)	75,000	78,232
West Allis West Milwaukee School District, School District, GO UT, FSA, 3.750%, 4/1/2012 NR/Aa3	60,000	63,762
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.000%, 8/15/2014 BBB+/Baa2	275,000	244,588
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, FSA, 5.000%, 8/1/2018 AAA/Aa3; Call Date 4/24/2018	70,000	75,477
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, MBIA, 5.250%, 8/15/2017 NR/A3; Call Date 4/2/2009	200,000	184,180
Wisconsin Housing & Economic Development Authority, Single Family Housing, Revenue Bonds, GO, 4.850%, 9/1/2031 AA/Aa2; Call Date 6/1/2011 (9)	560,000	559,205
		1,627,636
Total Municipals (identified cost $95,502,433)		96,282,446
Short-Term Investments — 4.6%
Mutual Funds — 4.6%
Marshall Tax-Free Money Market Fund, Class I	4,587,686	4,587,686
Total Short-Term Investments (identified cost $4,587,686)		4,587,686
Total Investments — 101.7% (identified cost $100,090,119)		100,870,132
Other Assets and Liabilities — (1.7)%		(1,733,330	)
Total Net Assets — 100.0%		$99,136,802

(See Notes which are an integral part of the Financial Statements)

32

Marshall Funds

Intermediate Tax-Free Fund (continued)

Portfolio Credit Ratings*
Sector	Fund
AAA	21.3%
AA	25.2
A	19.4
BBB	5.3
NR	25.9
Other Assets & Liabilities, Net	2.9
Total	100.0%

Government Income Fund

Description	Principal Amount	Value
Asset-Backed Securities — 0.6%
Federal Home Loan Mortgage Corporation — 0.1%
0.734%, 8/25/2031, (Series T-32) (4)	$     731,264	$       597,798
Home Equity — 0.1%
Green Tree Home Improvement Loan Trust, Class HEB1, (Series 1998-B), 7.810%, 11/15/2029	299,076	299,931
Other Financial — 0.4%
Countrywide Asset-Backed Certificates, Class A1, (Series 2007-QH2), 0.714%, 4/25/2037 (4)(6)(7)	3,276,761	1,777,794
Total Asset-Backed Securities (identified cost $4,307,711)		2,675,523
Collateralized Mortgage Obligations — 23.5%
Federal Home Loan Mortgage Corporation — 4.8%
0.805%, 6/15/2025, (Series 2993) (4)	7,267,591	7,059,796
5.000%, 10/15/2029, (Series 2745-AY)	5,000,000	5,104,930
5.000%, 10/15/2031, (Series 2543)	2,857,821	2,918,699
5.000%, 5/15/2033, (Series 2791)	1,795,482	1,840,376
5.000%, 10/15/2034, (Series 2876)	270,497	271,273
5.000%, 4/15/2035, (Series 2963)	1,268,181	1,278,723
5.500%, 10/15/2035, (Series 3058-WC)	1,674,366	1,685,827
6.000%, 6/15/2037, (Series 3333)	3,664,640	3,673,406
		23,833,030
Federal National Mortgage Association — 3.9%
0.724%, 1/25/2031, (Series 2001-25) (4)	1,670,197	1,661,243
4.000%, 10/25/2032, (Series 2003-28)	360,120	363,207
5.000%, 10/25/2016, (Series 2003-16)	5,000,000	5,138,395
5.500%, 3/25/2025, (Series 2006-12-PA)	5,267,001	5,356,276

Description	Principal Amount	Value
Collateralized Mortgage Obligations (continued)
Federal National Mortgage Association (continued)
5.500%, 8/25/2034, (Series 2005-123-PE)	$  5,407,000	$    5,605,459
5.500%, 11/25/2035, (Series 2005-100-DA)	1,205,719	1,215,627
		19,340,207
Private Sponsor — 14.8%
Banc of America Funding Corp., Class 1A3, (Series 2007-C), 5.758%, 5/20/2036 (4)	6,402,065	4,469,250
Chase Mortgage Finance Corp., Class 7A1, (Series 2007-A2), 5.886%, 7/25/2037 (4)	7,976,777	5,915,642
Countrywide Alternative Loan Trust, Class 2A14, (Series 2006-41CB), 6.000%, 1/25/2037	1,215,764	847,516
Countrywide Alternative Loan Trust, Class A19, (Series 2007-15CB), 5.750%, 7/25/2037	6,485,531	3,297,620
Countrywide Home Loan Mortgage Pass-Through Trust, Class 1A8, (Series 2003-J1), 5.750%, 3/25/2033	470,809	470,501
GSR Mortgage Loan Trust, Class 2A8, (Series 2005-5F), 5.500%, 6/25/2035	6,000,000	4,895,394
JP Morgan Alternative Loan Trust, Class 12A1, (Series 2007-A2), 0.674%, 6/25/2037 (4)	12,393,698	4,437,192
JP Morgan Mortgage Trust, Class 2A1, (Series 2007-A2), 5.686%, 4/25/2037 (4)	7,613,028	5,266,868
JP Morgan Mortgage Trust, Class 3A3, (Series 2007-A4), 5.884%, 6/25/2037 (4)	10,163,424	7,559,606
JP Morgan Mortgage Trust, Class 4A1, (Series 2007-A2), 6.040%, 4/25/2037 (4)	4,424,405	2,999,211
JP Morgan Mortgage Trust, Class 4A1M, (Series 2007-A2), 5.790%, 4/25/2037 (4)	6,636,608	4,574,634
Master Asset Securitization Trust, Class 4A5, (Series 2004-3), 5.000%, 3/25/2034	15,215,000	14,579,956
Residential Accredit Loans, Inc., Class A5, (Series 2003-QR24), 4.000%, 7/25/2033	1,922,178	1,207,929
Structured Asset Securities Corp., Class 2A2, (Series 2003-21), 5.250%, 8/25/2033	3,908,768	3,005,655
Thornburg Mortgage Securities Trust, Class A2B, (Series 2007-1), 0.574%, 3/25/2037 (4)	5,971,472	4,966,097
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR7), 5.605%, 5/25/2036 (4)	4,013,412	2,732,560

(See Notes which are an integral part of the Financial Statements)

33

February 28, 2009 (Unaudited)

Schedule of Investments

Government Income Fund (continued)

Description	Principal Amount	Value
Collateralized Mortgage Obligations (continued)
Private Sponsor (continued)
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR8), 5.240%, 4/25/2036 (4)	$  2,722,125	$    1,723,059
		72,948,690
Total Collateralized Mortgage Obligations (identified cost $145,575,759)		116,121,927
Commercial Mortgage Securities — 9.3%
Private Sponsor — 9.3%
Bear Stearns Commercial Mortgage Securities, Class AM, (Series 2007-PW17), 5.915%, 6/11/2050 (4)	6,000,000	2,325,348
Citigroup Commercial Mortgage Trust, Class A4, (Series 2007-C6), 5.700%, 12/10/2049 (4)	7,000,000	4,226,243
Citigroup Commercial Mortgage Trust, Class A4, (Series 2008-C7), 6.096%, 12/10/2049 (4)	3,000,000	1,943,142
Citigroup/Deutsche Bank Commercial Mortgage Trust, Class A4, (Series 2007-CD5), 5.886%, 11/15/2044 (4)	5,000,000	3,250,290
Credit Suisse Mortgage Capital Certificates, Class A1, (Series 2006-TF2A), 0.555%, 10/15/2021 (4)(6)(7)	1,206,748	995,676
Credit Suisse Mortgage Capital Certificates, Class AM, (Series 2007-C5), 5.869%, 9/15/2040 (4)	6,000,000	2,016,090
Greenwich Capital Commercial Funding Corp., Class A1, (Series 2006-FL4A), 0.535%, 11/5/2021 (4)(6)(7)	891,882	742,009
Greenwich Capital Commercial Funding Corp., Class AM, (Series 2007-GG11), 5.867%, 12/10/2049 (4)	9,000,000	3,583,179
Greenwich Capital Commercial Funding Corp., Class AM, (Series 2007-GG9), 5.475%, 3/10/2039	5,000,000	1,722,680
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1, (Series 2007-FL1A), 0.830%, 7/15/2019 (4)(6)(7)	2,649,825	2,016,694
Lehman Brothers Commercial Mortgage Trust, Class A1, (Series 2007-LLFA), 0.755%, 6/15/2022 (4)(6)(7)	6,263,093	4,818,717
Merrill Lynch Mortgage Trust, Class A2, (Series 2006-C1), 5.612%, 5/12/2039 (4)	3,000,000	2,514,435
Merrill Lynch Mortgage Trust, Class A3A, (Series 2005-CIP1), 4.949%, 7/12/2038 (4)	4,000,000	3,253,824

Description	Principal Amount	Value
Commercial Mortgage Securities (continued)
Private Sponsor (continued)
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class A4, (Series 2007-9), 5.700%, 9/12/2049	$  5,000,000	$    2,935,915
Morgan Stanley Capital I, Class A2A, (Series 2005-HQ6), 4.882%, 8/13/2042	4,000,000	3,682,260
Morgan Stanley Capital I, Class A4, (Series 2007-IQ16), 5.809%, 12/12/2049	5,000,000	3,105,485
Wachovia Bank Commercial Mortgage Trust, Class AM, (Series 2006-C27), 5.795%, 7/15/2045 (4)	2,000,000	806,796
Wachovia Bank Commercial Mortgage Trust, Class AM, (Series 2007-C34), 5.818%, 5/15/2046 (4)	6,000,000	2,264,136
Total Commercial Mortgage Securities (identified cost $78,391,922)		46,202,919
Corporate Bonds & Notes — 1.6%
Diversified Financial Services — 1.2%
Bear Stearns Cos., Inc., 1.360%, 2/1/2012 (4)	4,000,000	3,617,860
SLM Corp., 1.299%, 7/27/2009 (4)	2,500,000	2,327,655
		5,945,515
Insurance — 0.4%
HSB Capital I, 2.004%, 7/15/2027 (4)	3,000,000	2,106,417
Total Corporate Bonds & Notes (identified cost $9,468,950)		8,051,932
U.S. Government Agency-Mortgage Securities — 97.9%
Federal Home Loan Mortgage Corporation — 5.0%
5.000%, 8/1/2014	2,033,385	2,088,254
5.000%, 5/1/2021	2,883,695	2,974,560
5.000%, 10/1/2033	2,768,549	2,823,086
5.000%, 11/1/2035 (1)	9,319,537	9,485,649
5.500%, 11/1/2018	2,835,811	2,958,843
5.500%, 10/1/2021	3,096,209	3,219,413
6.500%, 9/1/2016	155,276	162,857
7.000%, 11/1/2009	4,777	4,829
7.500%, 9/1/2013	57,797	61,855
7.500%, 4/1/2024	208,543	223,299
7.500%, 4/1/2027	114,322	122,299
8.000%, 8/1/2030	131,228	139,414
8.500%, 9/1/2024	111,232	121,152
9.000%, 6/1/2019	156,608	171,656
9.500%, 2/1/2025	97,832	108,573
		24,665,739
Federal National Mortgage Association — 90.5%
5.000%, 5/1/2018	1,919,464	1,985,346
5.000%, 5/1/2020	3,653,994	3,767,991
5.000%, 7/1/2035	3,984,842	4,063,826
5.000%, 2/1/2036 (1)	5,453,896	5,561,998
5.000%, 12/1/2036 (1)	29,173,450	29,724,361
5.500%, 8/1/2021 (1)	12,697,534	13,186,923
5.500%, 1/1/2023	2,160,470	2,225,923
5.500%, 10/1/2024	2,545,397	2,618,620
5.500%, 2/1/2033	1,470,225	1,513,248
5.500%, 6/1/2035	4,568,595	4,690,864

(See Notes which are an integral part of the Financial Statements)

34

Marshall Funds

Government Income Fund (continued)

Description	Principal Amount	Value
U.S. Government Agency-Mortgage Securities (continued)
Federal National Mortgage Association (continued)
5.500%, 8/1/2036	$  2,904,131	$    2,979,133
5.500%, 11/1/2036 (1)	23,097,723	23,694,245
5.500%, 12/1/2036 (1)	15,715,584	16,121,455
5.500%, 1/1/2037 (1)	1,575,565	1,616,255
5.500%, 5/1/2037 (1)	25,597,068	26,252,686
5.500%, 7/1/2037 (1)	66,009,312	67,700,008
5.500%, 8/1/2037 (1)	9,057,004	9,288,981
5.500%, 8/1/2037 (1)	16,173,920	16,588,183
5.500%, 3/15/2039 (5)	95,000,000	97,330,445
6.000%, 9/1/2013	572,182	600,403
6.000%, 10/1/2016	436,229	457,473
6.000%, 9/1/2021	3,784,539	3,957,602
6.000%, 1/1/2036	1,671,515	1,730,875
6.000%, 4/1/2037	1,083,790	1,120,695
6.000%, 3/12/2039 (5)	75,000,000	77,472,675
6.500%, 9/1/2016	276,975	290,672
6.500%, 9/1/2016	574,406	602,810
6.500%, 8/1/2030	3,250,474	3,432,514
6.500%, 12/1/2031	195,738	206,456
6.500%, 9/1/2037 (1)	16,439,114	17,217,572
6.500%, 11/1/2037	3,219,178	3,359,891
6.500%, 1/1/2038	3,427,878	3,590,201
7.000%, 12/1/2010	4,357	4,373
7.000%, 3/1/2029	280,138	299,450
7.000%, 7/1/2029	730,042	780,371
7.000%, 2/1/2030	638,633	682,660
7.500%, 12/1/2009	38,584	38,767
7.500%, 10/1/2030	104,000	111,214
8.000%, 10/1/2028	1,210,748	1,291,021
8.000%, 4/1/2030	213,551	228,094
		448,386,280
Government National Mortgage Association — 2.4%
5.000%, 4/15/2034	1,787,822	1,830,901
5.500%, 9/15/2033	4,108,688	4,236,945
6.000%, 12/20/2033	4,559,152	4,722,215
6.500%, 9/15/2032	728,500	764,792
7.000%, 6/15/2029	154,929	167,514
7.000%, 8/15/2031	176,177	190,373
8.500%, 6/15/2010	34,961	35,244
9.000%, 11/15/2009	2,410	2,427
9.000%, 1/15/2010	11,693	11,792
9.500%, 10/15/2024	68,416	74,978
		12,037,181
Total U.S. Government Agency-Mortgage Securities
(identified cost $470,027,639)		485,089,200
Short-Term Investments — 50.8%
Collateral Pool Investment for Securities on Loan — 48.9%
(See Note 2 of the Financial Statements)		242,208,601

Description	Principal Amount	Value
Short-Term Investments (continued)
Repurchase Agreement — 1.9%
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009, to be repurchased at $9,457,382 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 8/23/2010, with a market value of $9,656,647 (at amortized cost)	$  9,457,216	$      9,457,216
Total Short-Term Investments (identified cost $251,665,817)		251,665,817
Total Investments — 183.7% (identified cost $959,437,798)		909,807,318
Other Assets and Liabilities — (83.7)%		(414,513,874	)
Total Net Assets — 100.0%		$495,293,444

Portfolio Sector Allocations*
Sector	Fund
Asset-Backed Securities	0.6%
Collateralized Mortgage Obligations	23.5
Commercial Mortgage Securities	9.3
Corporate Bonds & Notes	1.6
U.S. Government Agency-Mortgage Securities	97.9
Other Assets & Liabilities, Net	(32.9)
Total	100.0%

Corporate Income Fund

Description	Principal Amount	Value
Corporate Bonds & Notes — 55.1%
Agriculture — 2.4%
Altria Group, Inc., 10.200%, 2/6/2039	$   300,000	$     306,931
Banks — 1.6%
Korea Development Bank, 8.000%, 1/23/2014	200,000	202,290
Biotechnology — 1.9%
Amgen, Inc., 6.400%, 2/1/2039	250,000	242,365
Commercial Services — 2.9%
McKesson Corp., 7.500%, 2/15/2019	350,000	366,061
Diversified Financial Services — 4.4%
Caterpillar Financial Services Corp., 2.216%, 6/24/2011 (4)	150,000	139,281
General Electric Capital Corp., 6.875%, 1/10/2039	250,000	202,867
Merrill Lynch & Co., Inc., 6.875%, 4/25/2018	250,000	208,346
		550,494

(See Notes which are an integral part of the Financial Statements)

35

February 28, 2009 (Unaudited)

Schedule of Investments

Corporate Income Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Electric — 2.0%
CenterPoint Energy Houston Electric LLC, 7.000%, 3/1/2014	$   250,000	$     258,354
Environmental Control — 2.0%
Waste Management, Inc., 7.375%, 3/11/2019	250,000	248,931
Forest Products & Paper — 1.3%
International Paper Co., 8.700%, 6/15/2038	250,000	167,667
Healthcare-Services — 4.1%
Quest Diagnostics, Inc., 6.400%, 7/1/2017	150,000	143,783
Roche Holdings, Inc., 7.000%, 3/1/2039 (6)(7)	350,000	367,934
		511,717
Lodging — 0.6%
Wyndham Worldwide Corp., 6.000%, 12/1/2016	150,000	72,749
Media — 3.3%
Time Warner Entertainment Co. LP, 10.150%, 5/1/2012	200,000	216,478
Viacom, Inc., 6.125%, 10/5/2017	250,000	206,078
		422,556
Miscellaneous Manufacturing — 1.8%
Ingersoll-Rand Global Holding Co., Ltd., 6.875%, 8/15/2018	250,000	231,350
Oil & Gas — 8.6%
ConocoPhillips, 6.500%, 2/1/2039	300,000	291,706
Hess Corp., 8.125%, 2/15/2019	300,000	306,300
Nabors Industries, Inc., 9.250%, 1/15/2019 (6)(7)	250,000	230,088
Weatherford International, Ltd., 9.625%, 3/1/2019	250,000	255,779
		1,083,873
Pharmaceuticals — 2.0%
Abbott Laboratories, 6.000%, 4/1/2039	250,000	250,882
Pipelines — 3.3%
Kinder Morgan Energy Partners LP, 9.000%, 2/1/2019	150,000	162,116
TransCanada Pipelines, Ltd., 7.625%, 1/15/2039	250,000	250,405
		412,521
Retail — 2.1%
Staples, Inc., 9.750%, 1/15/2014	250,000	262,544
Telecommunications — 8.7%
AT&T, Inc., 6.550%, 2/15/2039	300,000	279,271
British Telecommunications PLC, 5.950%, 1/15/2018	250,000	205,293
Telecom Italia Capital SA, 1.650%, 2/1/2011 (4)	250,000	215,538
TELUS Corp., 8.000%, 6/1/2011	250,000	259,072
Vodafone Group PLC, 2.336%, 6/15/2011 (4)	150,000	138,847
		1,098,021
Transportation — 2.1%
FedEx Corp., 8.000%, 1/15/2019	250,000	262,748
Total Corporate Bonds & Notes (identified cost $6,931,483)		6,952,054

Description	Shares or Principal Amount	Value
U.S. Government & U.S. Government Agency Obligations — 5.9%
Federal National Mortgage Association — 3.7%
6.000%, 6/26/2023	$   300,000	$       297,972
6.350%, 6/11/2027	170,000	170,158
		468,130
U.S. Treasury Bonds & Notes — 2.2%
4.500%, 2/15/2036	250,000	276,953
Total U.S. Government & U.S. Government Agency Obligations (identified cost $749,349)		745,083
Short-Term Investments — 39.8%
Mutual Funds — 16.0%
Marshall Prime Money Market Fund, Class I	2,017,929	2,017,929
U.S. Treasury Bills — 23.8%
0.170%, 4/2/2009 (11)	$1,000,000	999,856
0.230%, 5/7/2009 (11)	1,000,000	999,639
0.300%, 6/4/2009 (11)	1,000,000	999,308
		2,998,803
Total Short-Term Investments (identified cost $5,016,566)		5,016,732
Total Investments — 100.8% (identified cost $12,697,398)		12,713,869
Other Assets and Liabilities — (0.8)%		(101,429	)
Total Net Assets — 100.0%		$12,612,440

Portfolio Sector Allocations*
Sector	Fund
Corporate Bonds & Notes	55.1%
U.S. Government & U.S. Government Agency Obligations	5.9
Other Assets & Liabilities, Net	39.0
Total	100.0%

Aggregate Bond Fund

Description	Principal Amount	Value
Asset-Backed Securities — 2.3%
Automobiles — 0.9%
Capital Auto Receivables Asset Trust, Class A3A, (Series 2008-2), 4.680%, 10/15/2012	$  2,000,000	$    1,858,686
Credit Cards — 1.4%
Chase Issuance Trust, Class A, (Series 2007-A15), 4.960%, 9/17/2012	3,000,000	3,061,770
Total Asset-Backed Securities (identified cost $4,999,492)		4,920,456

(See Notes which are an integral part of the Financial Statements)

36

Marshall Funds

Aggregate Bond Fund (continued)

Description	Principal Amount	Value
Collateralized Mortgage Obligations — 10.4%
Federal National Mortgage Association — 2.5%
5.500%, 3/25/2025, (Series 2006-12-PA)	$  2,175,368	$    2,212,240
5.500%, 8/25/2034, (Series 2005-123-PE)	3,000,000	3,110,112
		5,322,352
Private Sponsor — 7.9%
Chase Mortgage Finance Corp., Class 7A1, (Series 2007-A2), 5.886%, 7/25/2037 (4)	4,786,066	3,549,385
Countrywide Alternative Loan Trust, Class 2A14, (Series 2006-41CB), 6.000%, 1/25/2037	1,215,764	847,516
Countrywide Alternative Loan Trust, Class A19, (Series 2007-15CB), 5.750%, 7/25/2037	2,779,513	1,413,266
JP Morgan Alternative Loan Trust, Class 12A1, (Series 2007-A2), 0.674%, 6/25/2037 (4)	4,647,637	1,663,947
JP Morgan Mortgage Trust, Class 2A1, (Series 2006-A3), 5.609%, 5/25/2036 (4)	1,541,418	1,095,797
JP Morgan Mortgage Trust, Class 2A1, (Series 2007-A2), 5.686%, 4/25/2037 (4)	1,268,838	877,811
JP Morgan Mortgage Trust, Class 3A3, (Series 2007-A4), 5.884%, 6/25/2037 (4)	4,110,710	3,057,567
PHH Alternative Mortgage Trust, Class 1A1, (Series 2007-2), 0.584%, 5/25/2037 (4)	1,545,176	1,346,964
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR7), 5.605%, 5/25/2036 (4)	2,726,503	1,856,359
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR8), 5.240%, 4/25/2036 (4)	1,633,275	1,033,835
		16,742,447
Total Collateralized Mortgage Obligations (identified cost $30,876,881)		22,064,799
Commercial Mortgage Securities — 15.3%
Private Sponsor — 15.3%
Bear Stearns Commercial Mortgage Securities, Class AM, (Series 2007-PW17), 5.915%, 6/11/2050 (4)	3,000,000	1,162,674
Bear Stearns Commercial Mortgage Securities, Class AM, (Series 2007-PW18), 6.084%, 6/11/2050 (4)	2,000,000	776,492
Citigroup Commercial Mortgage Trust, Class A4, (Series 2007-C6), 5.700%, 12/10/2049 (4)	5,000,000	3,018,745

Description	Principal Amount	Value
Commercial Mortgage Securities (continued)
Private Sponsor (continued)
Citigroup Commercial Mortgage Trust, Class A4, (Series 2008-C7), 6.096%, 12/10/2049 (4)	$  3,000,000	$    1,943,142
Citigroup/Deutsche Bank Commercial Mortgage Trust, Class A4, (Series 2007-CD5), 5.886%, 11/15/2044 (4)	5,000,000	3,250,290
Credit Suisse Mortgage Capital Certificates, Class AM, (Series 2007-C5), 5.869%, 9/15/2040 (4)	3,000,000	1,008,045
Greenwich Capital Commercial Funding Corp., Class AM, (Series 2007-GG11), 5.867%, 12/10/2049 (4)	3,000,000	1,194,393
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1, (Series 2007-FL1A), 0.830%, 7/15/2019 (4)(6)(7)	2,649,825	2,016,695
JP Morgan Chase Commercial Mortgage Securities Corp., Class A2, (Series 2008-C2), 5.855%, 2/12/2051	3,000,000	2,314,776
Lehman Brothers Commercial Mortgage Trust, Class A1, (Series 2007-LLFA), 0.755%, 6/15/2022 (4)(6)(7)	3,914,433	3,011,698
Merrill Lynch Mortgage Trust, Class A2, (Series 2006-C1), 5.612%, 5/12/2039 (4)	2,425,000	2,032,502
Merrill Lynch Mortgage Trust, Class A3, (Series 2006-C1), 5.657%, 5/12/2039 (4)	2,000,000	1,532,968
Merrill Lynch Mortgage Trust, Class A3A, (Series 2005-CIP1), 4.949%, 7/12/2038 (4)	2,000,000	1,626,912
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class A4, (Series 2007-9), 5.700%, 9/12/2049	2,000,000	1,174,366
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class AM, (Series 2006-3), 5.456%, 7/12/2046 (4)	2,100,000	810,669
Morgan Stanley Capital I, Class A2A, (Series 2005-HQ6), 4.882%, 8/13/2042	3,000,000	2,761,695
Wachovia Bank Commercial Mortgage Trust, Class AM, (Series 2006-C27), 5.795%, 7/15/2045 (4)	4,000,000	1,613,592
Wachovia Bank Commercial Mortgage Trust, Class AM, (Series 2007-C34), 5.818%, 5/15/2046 (4)	2,944,000	1,110,936
Total Commercial Mortgage Securities (identified cost $49,478,707)		32,360,590
Corporate Bonds & Notes — 40.7%
Banks — 6.8%
Bank of America Corp., 4.900%, 5/1/2013	5,000,000	4,408,595

(See Notes which are an integral part of the Financial Statements)

37

February 28, 2009 (Unaudited)

Schedule of Investments

Aggregate Bond Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Banks (continued)
Bank of America Corp., 8.000%, 12/29/2049 (4)	$  3,000,000	$    1,121,427
Bank of New York Mellon Corp., 5.125%, 8/27/2013 (1)	2,000,000	1,987,774
Citigroup, Inc., 5.300%, 10/17/2012	2,000,000	1,775,486
JPMorgan Chase & Co., 6.400%, 5/15/2038 (1)	2,000,000	1,919,568
Royal Bank of Scotland Group PLC, 6.990%, 10/29/2049 (4)(6)(7)	3,000,000	780,726
Wells Fargo Capital XIII, 7.700%, 12/29/2049 (4)	5,000,000	2,436,150
		14,429,726
Beverages — 1.9%
Anheuser-Busch InBev Worldwide, Inc., 8.200%, 1/15/2039 (6)(7)	2,000,000	1,944,392
Bottling Group LLC, 5.125%, 1/15/2019	2,000,000	1,995,304
		3,939,696
Building Materials — 1.0%
CRH America, Inc., 6.000%, 9/30/2016	3,000,000	2,144,634
Diversified Financial Services — 8.4%
American Honda Finance Corp., 6.700%, 10/1/2013 (6)(7)	4,000,000	3,976,192
Caterpillar Financial Services Corp., 7.050%, 10/1/2018 (1)	3,000,000	2,923,542
Countrywide Financial Corp., 5.800%, 6/7/2012	2,000,000	1,834,166
General Electric Capital Corp., 5.625%, 5/1/2018 (1)	2,000,000	1,716,234
General Electric Capital Corp., 5.875%, 1/14/2038 (1)	3,000,000	2,138,748
General Electric Capital Corp., 6.875%, 1/10/2039 (1)	3,000,000	2,434,407
Genworth Global Funding Trusts, 5.200%, 10/8/2010	2,000,000	1,833,304
Lehman Brothers Holdings, Inc., 5.625%, 1/24/2013 (12)	3,000,000	405,000
Lehman Brothers Holdings, Inc., 6.000%, 7/19/2012 (12)	3,000,000	405,000
		17,666,593
Electric — 3.8%
Appalachian Power Co., 7.000%, 4/1/2038 (1)	3,000,000	2,819,910
Electricite de France, 6.950%, 1/26/2039 (1)(6)(7)	3,000,000	3,026,190
Southern California Edison Co., 5.750%, 3/15/2014	2,000,000	2,157,936
		8,004,036
Food — 1.9%
General Mills, Inc., 5.650%, 2/15/2019	2,000,000	2,002,094
Safeway, Inc., 6.250%, 3/15/2014	2,000,000	2,073,514
		4,075,608

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Healthcare-Services — 1.4%
Roche Holdings, Inc., 5.000%, 3/1/2014 (1)(6)(7)	$  3,000,000	$    3,037,386
Insurance — 2.9%
Genworth Life Institutional Funding Trust, 5.875%, 5/3/2013 (6)(7)	3,000,000	2,320,080
Progressive Corp., 6.700%, 6/15/2037 (4)	4,000,000	2,176,348
Prudential Financial, Inc., 6.000%, 12/1/2017	2,000,000	1,678,910
		6,175,338
Iron/Steel — 1.2%
ArcelorMittal, 5.375%, 6/1/2013	3,000,000	2,465,886
Media — 4.9%
Comcast Corp., 6.950%, 8/15/2037	2,000,000	1,836,346
Thomson Reuters Corp., 6.500%, 7/15/2018 (1)	3,000,000	2,816,094
Time Warner Cable, Inc., 6.750%, 7/1/2018	2,000,000	1,899,350
Time Warner Cable, Inc., 7.300%, 7/1/2038 (1)	3,000,000	2,744,508
Time Warner Cable, Inc., 8.250%, 2/14/2014	1,000,000	1,042,505
		10,338,803
Miscellaneous Manufacturing — 0.5%
Ingersoll-Rand Global Holding Co., Ltd., 6.000%, 8/15/2013 (1)	1,000,000	982,229
Oil & Gas — 1.4%
XTO Energy, Inc., 6.500%, 12/15/2018	3,000,000	2,932,929
Pipelines — 1.9%
Energy Transfer Partners LP, 9.700%, 3/15/2019	2,000,000	2,133,218
ONEOK Partners LP, 8.625%, 3/1/2019	2,000,000	1,991,660
		4,124,878
Real Estate Investment Trusts — 0.8%
iStar Financial, Inc., 8.625%, 6/1/2013	5,000,000	1,701,090
Telecommunications — 1.9%
AT&T, Inc., 5.800%, 2/15/2019 (1)	2,000,000	1,945,800
Rogers Communications, Inc., 6.800%, 8/15/2018	2,000,000	2,005,690
		3,951,490
Total Corporate Bonds & Notes (identified cost $107,835,056)		85,970,322
U.S. Government & U.S. Government Agency Obligations — 2.4%
Federal Home Loan Mortgage Corporation — 2.4%
3.375%, 4/15/2009	5,000,000	5,015,455
Total U.S. Government & U.S. Government Agency Obligations (identified cost $4,988,843)		5,015,455

(See Notes which are an integral part of the Financial Statements)

38

Marshall Funds

Aggregate Bond Fund (continued)

Description	Principal Amount	Value
U.S. Government Agency-Mortgage Securities — 54.9%
Federal Home Loan Mortgage Corporation — 1.7%
5.000%, 11/1/2035 (1)	$  3,388,923	$      3,449,327
Federal National Mortgage Association — 53.2%
5.000%, 7/1/2022 (1)	5,088,440	5,241,337
5.000%, 1/1/2037 (1)	8,840,611	9,007,557
5.500%, 5/1/2037 (1)	14,505,005	14,876,522
5.500%, 7/1/2038 (1)	1,888,747	1,937,123
5.500%, 3/15/2039 (5)	45,000,000	46,103,895
6.000%, 3/12/2039 (5)	25,000,000	25,824,225
6.500%, 9/1/2037	1,552,281	1,625,788
6.500%, 9/1/2037 (1)	4,109,779	4,304,393
6.500%, 11/1/2037	1,609,589	1,679,946
6.500%, 1/1/2038 (1)	1,713,939	1,795,101
		112,395,887
Total U.S. Government Agency-Mortgage Securities
(identified cost $112,939,103)		115,845,214
Short-Term Investments — 35.2%
Collateral Pool Investment for Securities on Loan — 27.8%
(See Note 2 of the Financial Statements)		58,763,000
Repurchase Agreement — 7.4%
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009, to be repurchased at $15,607,414 on 3/2/2009, collateralized by a U.S. Government Agency Obligation with a maturity of 8/23/2010, with a market value of $16,011,921 (at amortized cost)	15,607,141	15,607,141
Total Short-Term Investments (identified cost $74,370,141)		74,370,141
Total Investments — 161.2% (identified cost $385,488,223)		340,546,977
Other Assets and Liabilities — (61.2)%		(129,339,461	)
Total Net Assets — 100.0%		$211,207,516

Portfolio Sector Allocations*
Sector	Fund
Asset-Backed Securities	2.3%
Collateralized Mortgage Obligations	10.4
Commercial Mortgage Securities	15.3
Corporate Bonds & Notes	40.7
U.S. Government & U.S. Government Agency Obligations	2.4
U.S. Government Agency-Mortgage Securities	54.9
Other Assets & Liabilities, Net	(26.0)
Total	100.0%

Core Plus Bond Fund

Description	Principal Amount	Value
Corporate Bonds & Notes — 33.0%
Agriculture — 1.2%
Altria Group, Inc., 10.200%, 2/6/2039	$   250,000	$     255,776
Banks — 0.9%
Korea Development Bank, 8.000%, 1/23/2014	200,000	202,290
Biotechnology — 1.1%
Amgen, Inc., 6.400%, 2/1/2039	250,000	242,366
Commercial Services — 1.7%
McKesson Corp., 7.500%, 2/15/2019	350,000	366,061
Diversified Financial Services — 3.0%
Caterpillar Financial Services Corp., 2.216%, 6/24/2011 (4)	250,000	232,134
General Electric Capital Corp., 6.875%, 1/10/2039	250,000	202,867
Merrill Lynch & Co., Inc., 6.875%, 4/25/2018	250,000	208,346
		643,347
Electric — 1.2%
CenterPoint Energy Houston Electric LLC, 7.000%, 3/1/2014	250,000	258,354
Environmental Control — 1.1%
Waste Management, Inc., 7.375%, 3/11/2019	250,000	248,932
Forest Products & Paper — 0.8%
International Paper Co., 8.700%, 6/15/2038	250,000	167,667
Healthcare-Services — 2.6%
Quest Diagnostics, Inc., 6.400%, 7/1/2017	250,000	239,638
Roche Holdings, Inc., 7.000%, 3/1/2039 (6)(7)	300,000	315,372
		555,010
Lodging — 0.4%
Wyndham Worldwide Corp., 6.000%, 12/1/2016	200,000	96,998
Media — 2.2%
Time Warner Entertainment Co. LP, 10.150%, 5/1/2012	250,000	270,597
Viacom, Inc., 6.125%, 10/5/2017	250,000	206,078
		476,675
Miscellaneous Manufacturing — 1.1%
Ingersoll-Rand Global Holding Co., Ltd., 6.875%, 8/15/2018	250,000	231,350
Oil & Gas — 4.6%
ConocoPhillips, 6.500%, 2/1/2039	250,000	243,088
Hess Corp., 8.125%, 2/15/2019	250,000	255,250
Nabors Industries, Inc., 9.250%, 1/15/2019 (6)(7)	250,000	230,088
Weatherford International, Ltd., 9.625%, 3/1/2019	250,000	255,780
		984,206
Pharmaceuticals — 1.2%
Abbott Laboratories, 6.000%, 4/1/2039	250,000	250,882
Pipelines — 2.4%
Kinder Morgan Energy Partners LP, 9.000%, 2/1/2019	250,000	270,193

(See Notes which are an integral part of the Financial Statements)

39

February 28, 2009 (Unaudited)

Schedule of Investments

Core Plus Bond Fund (continued)

Description	Shares or Principal Amount	Value
Corporate Bonds & Notes (continued)
Pipelines (continued)
TransCanada Pipelines, Ltd., 7.625%, 1/15/2039	$   250,000	$     250,405
		520,598
Retail — 1.2%
Staples, Inc., 9.750%, 1/15/2014	250,000	262,544
Telecommunications — 5.1%
AT&T, Inc., 6.550%, 2/15/2039	250,000	232,726
British Telecommunications PLC, 5.950%, 1/15/2018	200,000	164,235
Telecom Italia Capital SA, 1.650%, 2/1/2011 (4)	250,000	215,537
TELUS Corp., 8.000%, 6/1/2011	250,000	259,072
Vodafone Group PLC, 2.336%, 6/15/2011 (4)	250,000	231,411
		1,102,981
Transportation — 1.2%
FedEx Corp., 8.000%, 1/15/2019	250,000	262,748
Total Corporate Bonds & Notes (identified cost $7,085,849)		7,128,785
U.S. Government & U.S. Government Agency Obligations —3.5%
Federal National Mortgage Association — 0.9%
5.750%, 6/8/2020	100,000	99,328
5.750%, 2/27/2023	100,000	98,336
		197,664
U.S. Treasury Bonds & Notes — 2.6%
4.500%, 2/15/2036	500,000	553,906
Total U.S. Government & U.S. Government Agency Obligations (identified cost $758,629)		751,570
U.S. Government Agency-Mortgage Securities — 22.1%
Federal Home Loan Mortgage Corporation — 7.1%
5.000%, 2/1/2039	1,500,000	1,524,861
Federal National Mortgage Association — 10.4%
6.000%, 12/1/2038	966,238	999,140
6.500%, 10/1/2037	1,193,545	1,250,132
		2,249,272
Government National Mortgage Association — 4.6%
6.000%, 10/15/2038	956,417	990,535
Total U.S. Government Agency-Mortgage Securities
(identified cost $4,748,751)		4,764,668
Short-Term Investments — 41.9%
Mutual Funds — 21.1%
Marshall Prime Money Market Fund, Class I	4,545,469	4,545,469
U.S. Treasury Bills — 20.8%
0.165%, 4/2/2009 (11)	$1,500,000	1,499,784
0.230%, 5/7/2009 (11)	1,500,000	1,499,458
0.337%, 6/4/2009 (11)	1,500,000	1,498,962
		4,498,204
Total Short-Term Investments (identified cost $9,043,371)		9,043,673
Total Investments — 100.5% (identified cost $21,636,600)		21,688,696
Other Assets and Liabilities — (0.5)%		(102,652	)
Total Net Assets — 100.0%		$21,586,044

Portfolio Sector Allocations*
Sector	Fund
Corporate Bonds & Notes	33.0%
U.S. Government & U.S. Government Agency Obligations	3.5
U.S. Government Agency-Mortgage Securities	22.1
Other Assets & Liabilities, Net	41.4
Total	100.0%

Government Money Market Fund

Description	Principal Amount	Value
Corporate Bonds & Notes — 0.9%
Diversified Financial Services — 0.9%
General Electric Capital Corp., 1.461%, 7/8/2010 (4)	$  10,000,000	$     10,000,000
Total Corporate Bonds & Notes		10,000,000
U.S. Government & U.S. Government Agency Obligations — 27.1%
Federal Home Loan Bank — 19.2%
0.945%, 10/23/2009 (4)	55,000,000	55,009,826
1.064%, 5/5/2009 (4)	25,000,000	25,000,000
1.194%, 1/11/2010 (4)	10,000,000	9,998,183
1.211%, 2/19/2010 (4)	25,000,000	24,936,019
1.241%, 4/7/2009 (4)	50,000,000	50,000,000
1.251%, 1/8/2010 (4)	20,000,000	19,996,545
1.296%, 3/26/2009 (4)	25,000,000	24,999,930
2.800%, 5/6/2009	5,000,000	5,000,000
3.050%, 6/18/2009	5,000,000	5,000,000
		219,940,503
Federal Home Loan Mortgage Corporation — 7.8%
1.800%, 5/18/2009 (11)	4,848,000	4,829,093
1.800%, 5/28/2009 (11)	25,000,000	24,890,000
2.001%, 12/7/2009 (4)	50,000,000	49,982,761
2.450%, 4/9/2009	10,000,000	10,000,000
		89,701,854
Federal National Mortgage Association — 0.1%
3.600%, 3/3/2009	500,000	500,020
3.625%, 3/16/2009	1,000,000	1,000,558
		1,500,578
Total U.S. Government & U.S. Government Agency Obligations		311,142,935
Repurchase Agreements — 72.0%
Agreement with Barclay’s Capital, Inc., Tri-Party Agency, 0.260%, dated 2/27/2009 to be repurchased at $230,004,983 on 3/02/2009, collateralized by U.S. Government Obligations with various maturities to 9/1/2038 with a market value of $234,600,001	230,000,000	230,000,000

(See Notes which are an integral part of the Financial Statements)

40

Marshall Funds

Government Money Market Fund (continued)

Description	Principal Amount	Value
Repurchase Agreements (continued)
Agreement with Cantor Fitzgerald, Inc., 1.000% dated 2/27/09 to be repurchased at $275,022,917 on 3/02/2009, collateralized by a U.S. Government Agency SBA Pool with various maturities to 1/1/2049, with a market value of $280,500,001	$275,000,000	$   275,000,000
Agreement with Deutsche Bank Alex Brown, Inc., 0.29%, dated 2/27/2009, to be repurchased at $150,003,625 on 3/2/2009, collateralized by a U.S. Government Agency Mortgage Pool with various maturities to 1/1/2039, with a market value of $153,000,001	150,000,000	150,000,000
Agreement with Fixed Income Clearing Corporation, 0.140%, dated 2/27/2009, to be repurchased at $7,968,892 on 3/02/2009, collateralized by U.S. Government Agency Obligations with various maturities to 3/06/2009, with a market value of $8,132,319	7,968,799	7,968,799
Agreement with Morgan Stanley & Co., Inc. 0.230%, dated 2/27/09, to be repurchased at $162,003,105 on 3/2/2009, collateralized by a U.S. Government Agency Pool with various maturities to 1/19/2016, with a market value of $166,297,329	162,000,000	162,000,000
Total Repurchase Agreements		824,968,799
Total Investments — 100.0% (at amortized cost)		1,146,111,734
Other Assets and Liabilities — 0.0%		269,633
Total Net Assets — 100.0%		$1,146,381,367

Portfolio Sector Allocations*
Sector	Fund
Corporate Bonds & Notes	0.9%
U.S. Government & U.S. Government Agency Obligations	27.1
Repurchase Agreements	72.0
Other Assets and Liabilities, Net	0.0
Total	100.0%

Tax-Free Money Market Fund

Description	Principal Amount	Value
Commercial Paper — 0.7%
California — 0.7%
State of California General Obligation Commercial Paper Notes, 3.490%, 3/5/2009	$  2,000,000	$    2,000,000
State of California General Obligation Commercial Paper Notes, 5.000%, 3/3/2009	5,000,000	5,000,000
Total Commercial Paper		7,000,000
Municipals — 100.3%
Alabama — 1.3%
Chatom Industrial Development Board, Development, Revenue Bonds, 4.250%, 8/1/2037, Call Date 8/1/2009 (4)	5,500,000	5,500,000
City of Gardendale AL, Multi-Family Housing, Revenue Bonds, 0.680%, 10/1/2032, Call Date 4/1/2009 (4)	1,465,000	1,465,000
City of Gardendale AL, Multi-Family Housing, Revenue Bonds, 0.680%, 10/1/2032, Call Date 4/1/2009 (4)	1,584,000	1,584,000
City of Gardendale AL, Multi-Family Housing, Revenue Bonds, 0.680%, 10/1/2032, Call Date 4/1/2009 (4)	3,200,000	3,200,000
		11,749,000
Arizona — 0.9%
Arizona Health Facilities Authority, Medical, Revenue Bonds, 0.830%, 2/1/2042, Call Date 2/1/2013 (4)	8,000,000	8,000,000
California — 5.8%
California Municipal Finance Authority, Development, Revenue Bonds, 2.170%, 8/1/2037, Call Date 3/2/2009 (4)	5,605,000	5,605,000
Fontana Unified School District, School District, GO UT, 1.920%, 2/1/2016 (4)	5,645,000	5,645,000
Los Angeles Regional Airports Improvement Corp., Airport, Revenue Bonds, 0.650%, 12/1/2025, Call Date 4/1/2009 (4)	13,200,000	13,200,000
State of California, General Obligation, GO UT, 1.920%, 2/1/2015 (4)	6,660,000	6,660,000
State of California, General Obligation, GO UT, 4.250%, 3/1/2035, Call Date 3/1/2016 (4)	12,000,000	12,000,000
State of California, General, Revenue Notes, 5.500%, 5/20/2009	10,000,000	10,037,512
		53,147,512

(See Notes which are an integral part of the Financial Statements)

41

February 28, 2009 (Unaudited)

Schedule of Investments

Tax-Free Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
Colorado — 2.4%
Aspen Valley Hospital District, Medical, Revenue Bonds, 0.810%, 10/15/2033, Call Date 4/1/2009 (4)	$10,710,000	$  10,710,000
Colorado Educational & Cultural Facilities Authority, Facilities, Revenue Bonds, 0.650%, 2/1/2034, Call Date 4/1/2009 (4)	975,000	975,000
Colorado Educational & Cultural Facilities Authority, Higher Education, Revenue Bonds, 1.170%, 7/1/2034, Call Date 4/1/2009 (4)	7,115,000	7,115,000
County of Pueblo CO, General, Revenue Bonds, 2.000%, 11/1/2028, Call Date 11/20/2009 (4)	1,500,000	1,500,000
Denver City & County CO, Development, Revenue Bonds, 0.660%, 7/1/2029, Call Date 3/4/2009 (4)	1,800,000	1,800,000
		22,100,000
Connecticut — 0.4%
Connecticut State Health & Educational Facility Authority, Higher Education, Revenue Bonds, Assured Guaranty Corp., 1.620%, 1/1/2016 (4)	3,575,000	3,575,000
Delaware — 0.5%
Wilmington DE, General, Revenue Bonds, 0.630%, 10/1/2037, Call Date 3/2/2009 (4)	5,000,000	5,000,000
District of Columbia — 0.5%
District of Columbia, Education, Revenue Bonds, 0.730%, 10/1/2023, Call Date 3/2/2009 (4)	4,330,000	4,330,000
Florida — 12.4%
Broward County School Board, Education, Certificate of Participation, 1.920%, 1/1/2016 (4)	4,995,000	4,995,000
Citizens Property Insurance, General, Revenue Notes, 4.500%, 6/1/2009	7,000,000	7,034,443
Citizens Property Insurance, General, Revenue Notes, GO, 4.500%, 6/1/2009	15,000,000	15,036,554
City of Gulf Breeze, Facilities, Revenue Bonds, 5.000%, 12/1/2020 (4)	16,500,000	16,500,000
County of Alachua FL, General, Revenue Bonds, 0.730%, 6/1/2025, Call Date 3/2/2009 (4)	3,100,000	3,100,000
Florida Higher Educational Facilities Financial Authority, Higher Education, Revenue Bonds, 0.620%, 3/1/2038, Call Date 3/4/2009 (4)	7,000,000	7,000,000

Description	Principal Amount	Value
Municipals (continued)
Florida (continued)
Florida State Board of Education, Education, GO UT, 0.670%, 6/1/2038, Call Date 6/1/2018 (4)	$    3,835,000	$    3,835,000
Florida State Department of Environmental Protection, General, Revenue Bonds, 3.500%, 7/1/2009	3,660,000	3,675,809
Highlands County Health Facilities Authority, Medical, Revenue Bonds, 0.630%, 11/15/2035, Call Date 3/2/2009 (4)	10,000,000	10,000,000
Miami Health Facilities Authority, Medical, Revenue Bonds, 0.620%, 8/1/2026, Call Date 3/2/2009 (4)	9,270,000	9,270,000
Miami-Dade County Industrial Development Authority, Development, Revenue Bonds, 0.650%, 12/1/2038, Call Date 4/1/2009 (4)	10,300,000	10,300,000
Orange County Health Facilities Authority, Medical, Revenue Bonds, 0.700%, 10/1/2026, Call Date 3/2/2009 (4)	6,900,000	6,900,000
Puttable Floating Option Tax-Exempt Receipts, General, Certificate of Participation, 0.930%, 7/1/2023, Call Date 7/1/2016 (4)	6,675,000	6,675,000
University Athletic Association, Inc., General, Revenue Bonds, 0.550%, 10/1/2031, Call Date 3/2/2009 (4)	9,695,000	9,695,000
		114,016,806
Georgia — 4.0%
Athens-Clarke County Unified Government Development Authority, Higher Education, Revenue Bonds, 0.600%, 9/1/2031, Call Date 3/2/2009 (4)	4,600,000	4,600,000
Cobb County Housing Authority, Multi-Family Housing, Revenue Bonds, 0.670%, 6/1/2025, Call Date 3/15/2009 (4)	4,300,000	4,300,000
Fulton County Development Authority, Medical, Revenue Bonds, 0.620%, 6/1/2037, Call Date 3/2/2009 (4)	8,000,000	8,000,000
Marietta Housing Authority, Multi-Family Housing, Revenue Bonds, 0.800%, 7/1/2024, Call Date 3/2/2009 (4)	12,035,000	12,035,000

(See Notes which are an integral part of the Financial Statements)

42

Marshall Funds

Tax-Free Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
Georgia (continued)
Rome-Floyd County Development Authority, Development, Revenue Bonds, 0.770%, 11/1/2011 (4)	$  3,500,000	$    3,500,000
Roswell Housing Authority, Multi-Family Housing, Revenue Bonds, 0.610%, 8/1/2024, Call Date 3/2/2009 (4)	2,550,000	2,550,000
Savannah Economic Development Authority, Medical, Revenue Bonds, 0.670%, 3/1/2018, Call Date 3/2/2009 (4)	2,220,000	2,220,000
		37,205,000
Illinois — 7.9%
Illinois Finance Authority, General, Revenue Bonds, 0.530%, 8/15/2026, Call Date 3/2/2009 (4)	4,160,000	4,160,000
Illinois Finance Authority, General, Revenue Bonds, 0.580%, 8/15/2026, Call Date 3/2/2009 (4)	3,200,000	3,200,000
Illinois Finance Authority, General, Revenue Bonds, 0.600%, 8/15/2026, Call Date 3/2/2009 (4)	4,200,000	4,200,000
Illinois Finance Authority, General, Revenue Bonds, 0.820%, 2/15/2016 (4)	5,595,000	5,595,000
Illinois Finance Authority, General, Revenue Bonds, 0.930%, 5/1/2038, Call Date 3/2/2009 (4)	5,900,000	5,900,000
Illinois Health Facilities Authority, Medical, Revenue Bonds, 1.010%, 7/1/2029, Call Date 7/1/2012 (4)	5,850,000	5,850,000
Phoenix Realty Special Account-U LP, Multi-Family Housing, Revenue Bonds, 0.950%, 4/1/2020, Call Date 3/2/2009 (4)	4,075,000	4,075,000
Term Tender Custodial Receipts, General, Revenue Bonds, 1.500%, 4/13/2009 (6)	20,000,000	20,000,000
Upper Illinois River Valley Development Authority, Development, Revenue Bonds, 0.780%, 8/1/2033, Call Date 3/2/2009 (4)	6,335,000	6,335,000
Village of Lakemoor IL, Multi-Family Housing, Revenue Bonds, 2.610%, 6/1/2011 (4)	12,925,486	12,925,486
		72,240,486

Description	Principal Amount	Value
Municipals (continued)
Indiana — 0.3%
Indiana Finance Authority, General, Revenue Bonds, 1.080%, 6/1/2038, Call Date 4/1/2009 (4)	$  3,000,000	$    3,000,000
Iowa — 1.3%
Iowa Higher Education Loan Authority, Student Loan, Revenue Bonds, 0.650%, 3/1/2030, Call Date 3/2/2009 (4)	5,590,000	5,590,000
Iowa Higher Education Loan Authority, Student Loan, Revenue Notes, 3.000%, 5/20/2009	3,620,000	3,625,815
Woodbury County IA, General, Revenue Bonds, 0.580%, 12/1/2014, Call Date 4/1/2009 (4)	2,505,000	2,505,000
		11,720,815
Kentucky — 0.3%
Hancock County KY, 0.770%, 7/1/2011 (4)	1,000,000	1,000,000
Hancock County KY, 0.770%, 7/1/2012 (4)	1,685,000	1,685,000
		2,685,000
Louisiana — 1.8%
BB&T Municipal Trust, General, Revenue Bonds, 0.780%, 7/1/2018 (4)	1,225,000	1,225,000
BB&T Municipal Trust, General, Revenue Bonds, 0.780%, 1/1/2024, Call Date 3/2/2009 (4)	6,025,000	6,025,000
Lafayette Parish Industrial Development Board, Development, Revenue Bonds, 1.130%, 12/15/2014, Call Date 4/1/2009 (4)	1,355,000	1,355,000
Louisiana Public Facilities Authority, Medical, Revenue Bonds, 1.920%, 1/1/2022 (4)	2,500,000	2,500,000
Plaquemines Port Harbor & Terminal District, Transportation, Revenue Bonds, 2.200%, 3/15/2025, Call Date 9/15/2009 (4)	5,000,000	5,000,000
		16,105,000
Maryland — 1.8%
County of Baltimore MD, Development, Revenue Bonds, 0.620%, 10/1/2027, Call Date 3/2/2009 (4)	4,120,000	4,120,000
Maryland Community Development Administration, Development, Revenue Bonds, 0.700%, 3/1/2041, Call Date 4/1/2009 (4)	5,810,000	5,810,000
Maryland Health & Higher Educational Facilities Authority, Higher Education, Revenue Bonds, 0.530%, 7/1/2034, Call Date 3/2/2009 (4)	7,000,000	7,000,000
		16,930,000

(See Notes which are an integral part of the Financial Statements)

43

February 28, 2009 (Unaudited)

Schedule of Investments

Tax-Free Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
Massachusetts — 1.3%
BB&T Municipal Trust, General, 0.820%, 10/1/2028 (4)(6)(7)	$11,800,000	$  11,800,000
Michigan — 3.3%
Michigan Strategic Fund, General, Revenue Bonds, 0.680%, 2/1/2032, Call Date 3/2/2009 (4)	5,795,000	5,795,000
Oakland County Economic Development Corp., Development, Revenue Bonds, 1.970%, 11/1/2037, Call Date 3/2/2009 (4)	19,390,000	19,390,000
Wayne State University, Higher Education, Revenue Bonds, 0.850%, 5/15/2016 (4)	4,995,000	4,995,000
		30,180,000
Minnesota — 2.1%
City of Bloomington MN, Development, Revenue Bonds, 0.720%, 12/1/2015 (4)	3,310,000	3,310,000
City of Bloomington MN, Development, Revenue Bonds, 0.720%, 12/1/2015, Call Date 4/1/2009 (4)	3,405,000	3,405,000
City of Coon Rapids MN, Medical, Revenue Bonds, 0.650%, 8/1/2015, Call Date 3/2/2009 (4)	3,500,000	3,500,000
Minnesota Rural Water Finance Authority, Water, Revenue Notes, 2.750%, 6/1/2009	7,500,000	7,512,993
St. Paul Port Authority, Transportation, Revenue Bonds, 4.000%, 6/1/2019 (4)	1,690,000	1,690,000
		19,417,993
Mississippi — 1.1%
Puttable Floating Option Tax-Exempt Receipts, General, Revenue Bonds, 1.000%, 1/1/2030 (4)	9,920,000	9,920,000
Montana — 0.4%
Montana Board of Investment, Development, Revenue Bonds, 0.720%, 9/1/2010 (4)	3,925,000	3,925,000
Nebraska — 0.1%
Nebraska Investment Finance Authority, Multi-Family Housing, Revenue Bonds, 1.610%, 9/1/2031, Call Date 4/1/2009 (4)	600,000	600,000
Nevada — 0.6%
Las Vegas Valley Water District, General Obligation, GO, 0.750%, 6/1/2011 (4)	5,285,000	5,285,000
New Hampshire — 1.5%
New Hampshire Business Finance Authority, Development, Revenue Bonds, 0.630%, 1/1/2018, Call Date 4/1/2009 (4)	13,515,000	13,515,000

Description	Principal Amount	Value
Municipals (continued)
New York — 1.3%
JP Morgan Chase Putters/Drivers Trust, Transportation, Revenue Bonds, 0.750%, 5/15/2014 (4)	$  8,370,000	$    8,370,000
Suffolk County Industrial Development Agency, Development, Revenue Bonds, 1.300%, 4/1/2018, Call Date 3/4/2009 (4)	3,785,000	3,785,000
		12,155,000
Ohio — 10.3%
Allen County OH, Medical, Revenue Bonds, 0.650%, 10/1/2031, Call Date 3/2/2009 (4)	1,400,000	1,400,000
American Municipal Power-Ohio, Inc., Power, Revenue Notes, 3.500%, 4/1/2009	20,000,000	20,014,886
County of Lawrence OH, Development, Revenue Bonds, 0.770%, 11/1/2011 (4)	3,250,000	3,250,000
County of Montgomery OH, Development, Revenue Bonds, 0.770%, 10/1/2009 (4)	4,700,000	4,700,000
Montgomery County Transportation Improvement District, Transportation, GO, 2.875%, 11/4/2009, Call Date 5/1/2009	10,000,000	10,019,779
Ohio State Higher Educational Facility Commission, Higher Education, Revenue Bonds, 0.960%, 1/15/2046, Call Date 1/15/2017 (4)	11,250,000	11,250,000
Puttable Floating Option Tax-Exempt Receipts, General, Revenue Bonds, 0.930%, 1/1/2019 (4)	7,140,000	7,140,000
Puttable Floating Option Tax-Exempt Receipts, General, Revenue Bonds, 1.250%, 10/1/2030 (4)	25,730,000	25,730,000
Puttable Floating Option Tax-Exempt Receipts, General, Revenue Bonds, 1.830%, 6/1/2037 (4)	11,065,000	11,065,000
		94,569,665
Oklahoma — 0.5%
Oklahoma Industries Authority, Education, Revenue Bonds, 1.130%, 8/1/2018, Call Date 4/1/2009 (4)	1,440,000	1,440,000
Tulsa Industrial Authority, Development, Revenue Bonds, 0.870%, 11/1/2026, Call Date 3/2/2009 (4)	2,955,000	2,955,000
		4,395,000

(See Notes which are an integral part of the Financial Statements)

44

Marshall Funds

Tax-Free Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
Pennsylvania — 3.3%
Allegheny County Industrial Development Authority, Development, Revenue Bonds, 0.770%, 7/1/2010 (4)	$  3,100,000	$    3,100,000
Crawford Central School District, School District, GO, 2.500%, 2/15/2010	2,260,000	2,275,549
Pennsylvania Higher Educational Facilties Authority, Higher Education, Revenue Bonds, 2.150%, 5/1/2009, Call Date 5/1/2009 (4)	5,900,000	5,900,000
Puttable Floating Option Tax-Exempt Receipts, General, Revenue Bonds, 0.630%, 11/15/2037, Call Date 11/15/2010 (4)	10,000,000	10,000,000
Reading School District, School District, GO UT, 1.920%, 1/15/2014 (4)	9,075,000	9,075,000
		30,350,549
Puerto Rico — 2.4%
Puerto Rico Housing Finance Authority, Housing, Revenue Bonds, 0.670%, 6/1/2012 (4)	9,050,000	9,050,000
Puerto Rico Industrial Medical & Envirmonmental Pollution Control Facilities Financing Authority, Development, Revenue Bonds, 2.000%, 3/1/2013 (4)	7,605,000	7,605,000
Puerto Rico Industrial Medical & Envirmonmental Pollution Control Facilities Financing Authority, Development, Revenue Bonds, 2.250%, 3/1/2023, Call Date 3/1/2010 (4)	5,770,000	5,770,000
		22,425,000
South Carolina — 4.8%
County of Charleston SC, Medical, Revenue Bonds, 0.550%, 8/15/2030, Call Date 3/2/2009 (4)	5,000,000	5,000,000
County of York SC, Pollution, Revenue Bonds, 4.000%, 9/15/2024, Call Date 9/1/2009 (4)	30,000,000	30,000,000
Piedmont Municipal Power Agency, Power, Revenue Bonds, 0.750%, 7/1/2021 (4)	7,325,000	7,325,000
South Carolina Transportation Infrastructure Bank, Transportation, Revenue Bonds, 0.750%, 4/1/2012 (4)	2,095,000	2,095,000
		44,420,000
South Dakota — 1.4%
South Dakota Health & Educational Facilities Authority, Higher Education, Revenue Bonds, 0.720%, 10/1/2034, Call Date 4/1/2009 (4)	5,625,000	5,625,000

Description	Principal Amount	Value
Municipals (continued)
South Dakota (continued)
South Dakota Housing Development Authority, Housing, Revenue Bonds, GO, 0.750%, 5/1/2048, Call Date 3/2/2009 (4)	$  7,320,000	$    7,320,000
		12,945,000
Tennessee — 0.9%
Knox County Health Educational & Housing Facilities Board, Medical, Revenue Bonds, 0.600%, 1/1/2046, Call Date 3/2/2009 (4)	5,000,000	5,000,000
Rutherford County Industrial Development Board, Development, Revenue Bonds, 0.770%, 7/1/2010 (4)	1,000,000	1,000,000
Williamson County Industrial Development Board, Development, Revenue Bonds, 0.620%, 9/1/2025, Call Date 3/2/2009 (4)	2,450,000	2,450,000
		8,450,000
Texas — 5.7%
Atascosa County Industrial Development Corp., Development, Revenue Bonds, 0.700%, 6/30/2020, Call Date 3/2/2009 (4)	11,000,000	11,000,000
Crawford Education Facilities Corp., Education, Revenue Bonds, 1.080%, 5/1/2038, Call Date 3/5/2009 (4)	1,600,000	1,600,000
JP Morgan Chase Putters/Drivers Trust, Transportation, GO, 0.670%, 2/15/2015 (4)(6)(7)	4,995,000	4,995,000
JP Morgan Chase Putters/Drivers Trust, Transportation, GO UT, 0.670%, 2/15/2012 (4)(6)(7)	7,960,000	7,960,000
JP Morgan Chase Putters/Drivers Trust, Transportation, GO UT, 0.670%, 2/15/2028, Call Date 2/15/2017 (4)(6)(7)	16,685,000	16,685,000
Texas Small Business Industrial Development Corp., Development, Revenue Bonds, 0.630%, 7/1/2026, Call Date 3/4/2009 (4)	9,915,000	9,915,000
		52,155,000
Utah — 0.8%
Utah Associated Municipal Power Systems, Power, Revenue Bonds, 2.170%, 4/1/2012 (4)	7,100,000	7,100,000
Virginia — 1.5%
BB&T Municipal Trust, General, 0.680%, 3/1/2023 (4)	3,575,000	3,575,000

(See Notes which are an integral part of the Financial Statements)

45

February 28, 2009 (Unaudited)

Schedule of Investments

Tax-Free Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
Virginia (continued)
Harrisonburg Industrial Development Authority, Development, Revenue Bonds, 0.600%, 12/1/2021, Call Date 3/2/2009 (4)	$  5,670,000	$    5,670,000
Richmond Industrial Development Authority, Development, Revenue Bonds, 0.620%, 5/1/2035, Call Date 3/2/2009 (4)	3,000,000	3,000,000
Suffolk Redevelopment & Housing Authority, Multi-Family Housing, Revenue Bonds, 0.680%, 9/1/2019, Call Date 3/2/2009 (4)	1,405,000	1,405,000
		13,650,000
Washington — 2.7%
Central Washington University, Higher Education, Revenue Bonds, 0.750%, 11/1/2012 (4)	6,935,000	6,935,000
Spokane Public Facilities District, Facilities, Revenue Bonds, 0.750%, 6/1/2012 (4)	6,230,000	6,230,000
Washington Economic Development Finance Authority, Development, Revenue Bonds, 0.580%, 8/1/2033, Call Date 3/2/2009 (4)	7,500,000	7,500,000
Washington State Housing Finance Commission, Housing, Revenue Bonds, 0.580%, 11/1/2032, Call Date 3/2/2009 (4)	2,755,000	2,755,000
Washington State Housing Finance Commission, Housing, Revenue Bonds, 0.650%, 12/1/2023, Call Date 3/2/2009 (4)	1,480,000	1,480,000
		24,900,000
Wisconsin — 12.7%
Appleton Area School District, School District, Revenue Notes, 4.150%, 9/30/2009	5,000,000	5,004,468
Arrowhead Union High School District, School District, Revenue Notes, 2.375%, 9/29/2009	3,550,000	3,554,521
Ashland School District, School District, Revenue Bonds, 2.250%, 8/28/2009	4,300,000	4,303,333
Denmark School District, School District, Revenue Notes, 2.500%, 8/28/2009	3,500,000	3,501,854
La Crosse WI, Development, Revenue Bonds, 0.580%, 6/1/2028, Call Date 3/2/2009 (4)	9,500,000	9,500,000
Menomonee Falls School District, School District, Revenue Notes, 2.720%, 8/24/2009	10,250,000	10,256,722

Description	Principal Amount	Value
Municipals (continued)
Wisconsin (continued)
Mequon & Thiensville School District, School District, GO UT, 2.500%, 9/4/2009	$  9,500,000	$    9,523,823
Pulaski Community School District, School District, Revenue Notes, 2.750%, 9/15/2009	4,100,000	4,105,405
Shawano School District, School District, GO UT, 2.750%, 1/4/2010, Call Date 6/1/2009	12,900,000	12,927,556
Sheboygan Falls School District, School District, GO UT, 2.250%, 9/23/2009	2,000,000	2,001,761
Shorewood School District, School District, Revenue Notes, 3.500%, 10/15/2009	6,400,000	6,408,462
St. Francis School District, School District, Notes, 2.875%, 12/23/2009, Call Date 6/23/2009	3,400,000	3,409,222
Two Rivers Public School District, School District, Revenue Notes, 2.500%, 9/30/2009	4,200,000	4,206,927
Watertown Unified School District, School District, GO UT, 2.750%, 12/1/2009, Call Date 5/1/2009	3,100,000	3,104,387
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 0.650%, 4/1/2036, Call Date 3/2/2009 (4)	2,500,000	2,500,000
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 0.660%, 2/1/2039, Call Date 4/1/2009 (4)	4,200,000	4,200,000
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 0.970%, 8/1/2026, Call Date 3/2/2009 (4)	11,000,000	11,000,000
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 1.020%, 2/1/2022 (4)	1,675,000	1,675,000
Wisconsin Health & Educational Facilities Authority, Nursing Homes, Revenue Bonds, 1.130%, 5/1/2026, Call Date 4/1/2009 (4)	200,000	200,000
Wisconsin School Districts Temporary Borrowing Program, Education, Certificate of Participation, 3.000%, 10/30/2009	12,500,000	12,606,713
Wisconsin-Dells School District, School District, Notes, 4.250%, 10/28/2009	2,750,000	2,754,364
		116,744,518
Total Municipals		920,707,344

(See Notes which are an integral part of the Financial Statements)

46

Marshall Funds

Tax-Free Money Market Fund(continued)

Description	Shares	Value
Mutual Funds — 1.7%
Federated Tax-Free Obligations Fund, Class I	15,441,992	$    15,441,992
Total Mutual Fund Money Markets (identified cost $15,441,992)		15,441,992
Total Investments — 102.7% (at amortized cost)		943,149,336
Other Assets and Liabilities — (2.7)%		(24,948,603	)
Total Net Assets — 100.0%		$918,200,733

Portfolio Sector Allocations*
Sector	Fund
Commercial Paper	0.7%
Municipals	100.3
Mutual Funds	1.7
Other Assets & Liabilities, Net	(2.7)
Total	100.0%

Prime Money Market Fund

Description	Principal Amount	Value
Commercial Paper — 57.9%
Asset-Backed Securities — 25.2%
Atlantis One Funding, 0.750%, 5/13/2009 (6)(7)(11)	$150,000,000	$   149,771,874
Chariot Funding LLC, 0.550%, 5/5/2009 (6)(7)(11)	50,000,000	49,950,347
Chariot Funding LLC, 0.550%, 5/27/2009 (6)(7)(11)	51,000,000	50,932,213
Ciesco LLC, 1.000, 5/18/2009 (6)(7)(11)	100,000,000	99,783,333
Clipper Receivables Co., LLC, 0.500%, 3/2/2009 (6)(7)(11)	150,000,000	149,997,916
Fairway Finance Corp., 0.670%, 5/11/2009 (6)(7)(11)	23,000,000	22,969,608
Fairway Finance Corp., 0.670%, 5/20/2009 (6)(7)(11)	60,000,000	59,910,667
Fairway Finance Corp., 0.680%, 5/8/2009 (6)(7)(11)	25,000,000	24,967,889
Fairway Finance Corp., 1.700%, 3/6/2009 (6)(7)(11)	41,400,000	41,390,225
Falcon Asset Securitization Co., LLC, 0.550%, 5/26/2009 (6)(7)(11)	51,000,000	50,932,992
Gemini Securitization Corp., 0.900%, 5/19/2009 (6)(7)(11)	100,000,000	99,802,500
Gemini Securitization Corp., 0.900%, 5/22/2009 (6)(7)(11)	50,000,000	49,897,500
GovCo LLC, 0.950%, 5/15/2009 (6)(7)(11)	50,000,000	49,901,042
GovCo LLC, 0.950%, 5/18/2009 (6)(7)(11)	100,000,000	99,794,166
Jupiter Securitization Co., 0.550%, 5/5/2009 (6)(7)(11)	100,000,000	99,900,694

Description	Principal Amount	Value
Commercial Paper (continued)
Asset-Backed Securities (continued)
Park Avenue Receivables Co., 0.500%, 4/7/2009 (6)(7)(11)	$65,000,000	$     64,966,597
Park Avenue Receivables Co., 0.500%, 5/4/2009 (6)(7)(11)	85,000,000	84,924,445
Thunder Bay Funding LLC, 0.620%, 5/14/2009 (6)(7)(11)	25,045,000	25,013,082
Thunder Bay Funding LLC, 0.650%, 6/1/2009 (6)(7)(11)	50,000,000	49,917,847
Thunder Bay Funding LLC, 0.650%, 6/3/2009 (6)(7)(11)	50,000,000	49,916,042
		1,374,640,979
Automobiles — 2.8%
Toyota Financial Services, 1.200%, 4/6/2009 (11)	100,000,000	99,880,000
Toyota Financial Services, 1.200%, 4/17/2009 (11)	50,000,000	49,921,667
		149,801,667
FDIC - Insured CP — 2.8%
Citigroup Funding Inc., 2.180%, 3/2/2009 (11)	150,000,000	149,990,916
Foreign Banks — 20.7%
Australia & New Zealand Banking Group, 2.601%, 10/2/2009 (4)(6)(7)	150,000,000	150,000,000
Bank of Ireland, 2.000%, 3/16/2009 (6)(7)(11)	50,000,000	49,958,333
BNP Paribas Finance, Inc., 0.860%, 4/27/2009 (11)	150,000,000	149,795,750
Calyon North America, Inc., 1.000%, 5/11/2009 (11)	75,000,000	74,852,083
Calyon North America, Inc., 2.080%, 3/9/2009 (11)	75,000,000	74,965,333
Danske Corp., 1.200%, 3/30/2009 (6)(7)(11)	100,000,000	99,903,026
DNB Nor Bank Asa, 1.270%, 4/22/2009 (6)(7)(11)	25,750,000	25,702,763
DNB Nor Bank Asa, 1.300%, 5/7/2009 (6)(7)(11)	100,000,000	99,758,056
Irish Life & Permanent Treasury PLC, 2.300%, 3/12/2009 (6)(7)(11)	100,000,000	99,929,722
Societe Generale North America, Inc., 0.970%, 4/23/2009 (11)	150,000,000	149,785,792
UBS Finance (Delaware) LLC, 1.150%, 4/20/2009 (11)	50,000,000	49,920,139
UBS Finance (Delaware) LLC, 2.100%, 3/10/2009 (11)	100,000,000	99,947,500
		1,124,518,497
Insurance — 3.7%
Prudential Financial, Inc., 1.170%, 5/21/2009 (6)(7)(11)	50,000,000	49,868,375
Prudential Financial, Inc., 2.500%, 4/24/2009 (6)(7)(11)	25,000,000	24,906,250
Prudential Financial, Inc., 3.000%, 4/29/2009 (6)(7)(11)	125,000,000	124,385,417
		199,160,042

(See Notes which are an integral part of the Financial Statements)

47

February 28, 2009 (Unaudited)

Schedule of Investments

Prime Money Market Fund (continued)

Description	Principal Amount	Value
Commercial Paper (continued)
Telecommunication Services — 2.7%
Verizon Communications, 0.850%, 4/20/2009 (6)(7)(11)	$  59,249,000	$     59,178,775
Verizon Communications, 0.860%, 4/21/2009 (6)(7)(11)	90,000,000	89,890,917
		149,069,692
Total Commercial Paper		3,147,181,793
Corporate Bonds & Notes — 2.5%
Telecommunications — 2.5%
Bellsouth Corp., 4.973%, 4/26/2009 (6)(7)	134,000,000	134,262,901
Total Corporate Bonds & Notes		134,262,901
Municipals — 0.9%
Florida — 0.5%
Highlands County Fl Health Facilities Authority, Revenue Bonds, 0.570%, 11/15/2037 (4)	28,350,000	28,350,000
Wisconsin — 0.4%
Wisconsin Housing & Economic Development Authority, Revenue Bonds (Series E), 1.600%, 3/1/2036 (4)	21,870,000	21,870,000
Total Municipals		50,220,000
Notes-Variable — 25.4%
Banks — 7.4%
Bank of America, 1.374%, 7/30/2009 (4)	65,000,000	65,000,000
Bank of America, 1.625%, 10/2/2009 (4)	85,000,000	85,000,000
Bank of Montreal/Chicago, 1.636%, 8/28/2009 (4)	150,000,000	150,000,000
Westpac Banking Corp. NY, (Series DPNT), 1.528%, 8/11/2009 (4)	100,000,000	100,000,000
		400,000,000
Broker/Dealers — 2.3%
Deutsche Bank NY, 1.735%, 10/21/2009 (4)	50,000,000	50,000,000
Goldman Sachs Group, Inc., 1.588%, 6/23/2009 (4)	10,429,000	10,400,229
Goldman Sachs Group, Inc., 1.625%, 6/19/2009 (4)	12,429,000	12,395,632
Goldman Sachs Group, Inc., 1.998%, 12/17/2009 (4)	50,000,000	50,000,000
		122,795,861
Consumer Staples — 2.2%
Procter & Gamble Co., 1.466%, 8/19/2009 (4)	58,000,000	58,072,661
Procter & Gamble Co., 1.486%, 2/8/2010 (4)	60,000,000	60,000,000
		118,072,661

Description	Principal Amount	Value
Notes-Variable (continued)
Financial Services — 0.7%
General Electric Capital Corp., 1.461%, 7/8/2010 (4)	$  40,000,000	$     40,000,000
Foreign Banks — 3.3%
Danske Corp., 1.810%, 1/8/2010 (4)	50,000,000	50,000,000
National Australia Bank, 1.321%, 8/19/2009 (4)(6)(7)	8,000,000	7,978,690
National Australia Bank, 2.204%, 9/11/2009 (4)(6)(7)	19,761,000	19,733,879
National Australia Bank, 2.423%, 10/6/2009 (4)(6)(7)	100,000,000	100,000,000
		177,712,569
Insurance — 6.7%
Hartford Life Global Funding, 2.286%, 10/15/2009 (4)	40,000,000	40,000,000
Jackson National Life Insurance Co., 1.736%, 5/22/2009 (4)(6)(7)	100,000,000	99,994,138
MassMutual Global Funding II 1.828%, 3/19/2009 (4)(6)(7)	75,000,000	75,000,000
Metropolitan Life Global Funding I 1.668%, 8/7/2009 (4)(6)(7)	35,000,000	35,000,000
Metropolitan Life Insurance Co., 2.453%, 6/1/2009 (4)(6)(10)	65,000,000	65,000,000
Metropolitan Life Insurance Co., 2.920%, 2/1/2010 (4)(6)(10)	50,000,000	50,000,000
		364,994,138
Personal Credit — 1.9%
American Honda Finance Corp., (Series MTN), 1.541%, 7/8/2009 (4)(6)(7)	55,000,000	55,000,000
American Honda Finance Corp., (Series MTN), 1.565%, 4/2/2009 (4)(6)(7)	50,000,000	50,000,000
		105,000,000
Pharmaceuticals — 0.9%
Roche Holdings, Inc., 2.249%, 2/25/2010 (4)(6)(7)	50,000,000	50,000,000
Total Notes-Variable		1,378,575,229

(See Notes which are an integral part of the Financial Statements)

48

Marshall Funds

Prime Money Market Fund (continued)

Description	Principal Amount	Value
Repurchase Agreements — 13.8%
Agreement with Deutsche Bank Alex Brown, Inc., 0.270%, dated 02/27/2009 to be repurchased at $150,003,375 on 03/2/2009, collateralized by U.S. Government Agency Obligations with various maturities to 3/6/2012, with a market value of $153,000,753	$150,000,000	$   150,000,000
Agreement with Deutsche Bank Alex Brown, Inc., 0.463%, dated 2/27/2009 to be repurchased at $150,005,781 on 3/2/2009, collateralized by U.S. Government Agency Obligations with various maturities to 11/15/2018, with a market value of $153,972,514	150,000,000	150,000,000
Agreement with Fixed Income Clearing Corporation, 0.140%, dated 2/27/2009 to be repurchased at $115,716,161 on 3/2/2009, collateralized by U.S. Government Agency Obligations with various maturities to 2/11/2010, with a market value of $118,030,071	115,714,811	115,714,811
Agreement with Morgan Stanley & Co., Inc., 0.210%, dated 2/27/2009 to be repurchased at $183,003,203 on 3/2/2009, collateralized by U.S. Government Agency Obligations with various maturities to 4/1/2056, with a market value of $187,281,487	183,000,000	183,000,000
Agreement with Morgan Stanley & Co., Inc., 0.563%, dated 2/27/2009 to be repurchased at $150,007,031 on 3/2/2009, collateralized by U.S. Government Agency Obligations with various maturities to 5/1/2067, with a market value of $156,944,688	150,000,000	150,000,000
Total Repurchase Agreements		748,714,811

Description	Principal Amount	Value
Trust Demand Notes — 1.2%
Broker/Dealers — 1.2%
JP Morgan Securities, Inc., 0.563%, 3/2/2009 (4)(6)(7)	$  63,000,000	$     63,000,000
Total Trust Demand Notes		63,000,000
Total Investments — 101.7% (at amortized cost)		5,521,954,734
Other Assets and Liabilities — (1.7)%		(90,490,719	)
Total Net Assets — 100.0%		$5,431,464,015

Portfolio Sector Allocations*
Sector	Fund
Commercial Paper	57.9%
Corporate Bonds & Notes	2.5
Municipals	0.9
Notes-Variable	25.4
Repurchase Agreements	13.8
Trust Demand Notes	1.2
Other Assets and Liabilities, Net	(1.7)
Total	100.0%

(See Notes which are an integral part of the Financial Statements)

49

Notes to Schedules of Investments (Unaudited)

The categories of investments are shown as a percentage of total net assets for each Fund as of February 28, 2009.

* Portfolio composition will change due to ongoing management of the Fund. The percentages are based on net assets at the close of business on February 28, 2009 and may not necessarily reflect adjustments that are routinely made when presenting net assets for formal financial statement purposes.

(1) Certain shares or principal amounts are temporarily on loan to unaffiliated brokers-dealers.

(2) Non-income producing.

(3) Represents the initial deposit within a margin account used to ensure the Fund is able to satisfy the obligations of its outstanding long futures contracts.

(4) Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of February 28, 2009.

(5) Purchased on a when-issued or delayed delivery basis.

(6) Denotes a restricted security which is subject to restrictions on resale under federal securities law. At February 28, 2009, these securities amounted to:

Fund	Amount		% of Total Net Assets
Short-Term Income Fund	$	4,047,816	5.04	%
Short-Intermediate Bond Fund		20,413,360	12.80
Government Income Fund		10,350,890	2.09
Corporate Income Fund		598,022	4.74
Aggregate Bond Fund		20,113,359	9.52
Core Plus Bond Fund		545,460	2.53
Tax-Free Money Market Fund		61,440,000	6.69
Prime Money Market Fund		3,053,092,221	56.21

(7) Denotes a restricted security which has been deemed liquid by criteria approved by the Board of Directors of Marshall Funds, Inc.

(8) Please refer to the Statement of Additional Information for an explanation of the credit ratings. Credit ratings contained in the Schedule of Investments are unaudited.

(9) Securities that are subject to alternative minimum tax represent 10.73% of Intermediate Tax-Free Fund’s portfolio as calculated based upon total portfolio market value.

(10) Securities have redemption features that may delay redemption beyond seven days.

(11) Each issue shows the rate of the discount at the time of purchase.

(12) Issue is in default or bankruptcy.

The following acronyms are used throughout this report:

ACA —American Capital Access Corporation

ADED —Arkansas Department of Economic Development

ADR —American Depository Receipt

AGC —Assured Guaranty Corporation

AMBAC —American Municipal Bond Assurance Corporation

AMT —Alternative Minimum Tax

BHAC —Berkshire Hathaway Assurance Corporation

BMA —Bond Market Association

CFC —National Rural Utilities Cooperative Finance Corporation

CIFG —CDC IXIS Financial Guaranty

COL —Collateralized

FGIC —Financial Guaranty Insurance Corporation

FHLB —Federal Home Loan Bank

FHLMC —Federal Home Loan Mortgage Corporation

FNMA —Federal National Mortgage Association

FRN —Floating Rate Note

FSA —Financial Security Assurance Corporation

GDR —Global Depository Receipt

GNMA —Government National Mortgage Association

GO —Government Obligation

HFDC —Health Facility Development Corporation

HUD —Department of Housing and Urban Development

IDC —Industrial Development Corporation

IMI —Investors Mortgage Insurance Company

INS —Insured

LIQ —Liquidity Agreement

LOC —Letter of Credit

LP —Limited Partnership

LT —Limited Tax

MBIA —Municipal Bond Insurance Association

MHF —Maryland Housing Fund

MTN —Medium Term Note

PCA —Pollution Control Authority

PLC —Public Limited Company

PSF —Permanent School Fund Guaranteed

PUFG —Permanent University Fund Guarantee

RADIAN—Radian Asset Assurance

REITs —Real Estate Investment Trusts

REMIC —Real Estate Mortgage Investment Conduit

TCRs —Transferable Custody Receipts

TRANs —Tax and Revenue Anticipation Notes

UT —Unlimited Tax

VRNs —Variable Rate Notes

XLCA —XL Capital Assurance

50

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51

February 28, 2009 (Unaudited)

Statements of Assets and Liabilities

	Large-Cap Value Fund			Large-Cap Growth Fund
Assets:
Investments in securities, at value	$	211,873,459		$	161,361,577
Investments in repurchase agreements		4,061,187			3,679,956
Cash		—			—
Cash denominated in foreign currencies		—			—
Dividends receivable		673,587			246,101
Interest receivable		47			43
Receivable for investments sold		757,589			1,036,773
Receivable for capital stock sold		1,374,813			2,574,984
Receivable for daily variation margin		—			—
Receivable from affiliates		—			—
Other receivables		28,678			26,158
Total assets		218,769,360			168,925,592
Liabilities:
Payable for capital stock redeemed		187,571			89,279
Payable for investments purchased		—			2,393,742
Payable on collateral due to broker		62,272,135			41,835,123
Payable for foreign tax expense		—			—
Call Options written, at value (premium received $533,030)		363,530			—
Put Options written, at value (proceeds received $364,375)		253,978			—
Payable for income distribution		—			—
Payable to affiliates (Note 5)		126,991			97,093
Other liabilities		28,612			23,989
Total liabilities		63,232,817			44,439,226
Total Net Assets	$	155,536,543		$	124,486,366
Net Assets Consist of:
Paid-in-capital	$	228,498,778		$	199,226,681
Net unrealized appreciation (depreciation) on investments, options, futures contracts and foreign currency translation		(41,901,280	)		(26,396,347	)
Accumulated net realized gain (loss) on investments, options, futures contracts and foreign currency transactions		(31,976,282	)		(48,565,986	)
Undistributed net investment income (distributions in excess of net investment income)		915,327			222,018
Total Net Assets	$	155,536,543		$	124,486,366
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Investor Class of Shares:
Net Asset Value, Offering Price and Redemption Proceeds Per Share	$	7.56		$	7.21
Advisor Class of Shares:
Net Asset Value and Redemption Proceeds Per Share	$	7.56		$	7.21
Offering Price Per Share	$	8.02	(3)	$	7.65	(3)
Institutional Class of Shares:
Net Asset Value, Offering Price and Redemption Proceeds Per Share	$	7.57		$	7.23
Net Assets:
Investor Class of Shares	$	62,618,355		$	41,432,737
Advisor Class of Shares		5,599,512			4,370,376
Institutional Class of Shares		87,318,676			78,683,253
Total Net Assets	$	155,536,543		$	124,486,366
Shares Outstanding:
Investor Class of Shares		8,284,863			5,742,652
Advisor Class of Shares		740,868			605,750
Institutional Class of Shares		11,542,327			10,887,347
Total Shares Outstanding		20,568,058			17,235,749
Investments, at identified cost	$	258,115,823		$	191,437,880

(1) Commenced operations on December 23, 2008.

(2) Identified cost of cash denominated in foreign currencies are $512,450 and $46,151, respectively.

(3) Computation of offering price per share 100/94.25 of net asset value.

(See Notes which are an integral part of the Financial Statements)

52

Marshall Funds

Mid-Cap Value Fund			Mid-Cap Growth Fund			Small-Cap Growth Fund			International Stock Fund			Emerging Markets Equity Fund (1)
$	207,212,890		$	192,790,137		$	227,343,438		$	125,118,055		$	8,064,615
	5,521,569			3,039,446			4,207,296			4,731,869			374,191
	—			—			—			—			—
	—			—			—			481,522	(2)		44,405	(2)
	393,816			55,556			21,676			578,126			12,173
	64			36			49			37			3
	—			5,337,684			4,523,815			1,254,125			—
	1,066,446			2,606,785			157,324			2,739,077			—
	—			—			—			—			—
	—			—			—			—			33,730
	26,701			27,028			29,157			2,474,055			48,285
	214,221,486			203,856,672			236,282,755			137,376,866			8,577,402
	90,576			157,301			154,452			159,728			—
	1,246,390			4,522,369			5,359,818			1,199,002			—
	59,908,697			56,118,972			65,491,802			26,226,752			—
	—			—			—			33,875			121
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	130,493			108,980			172,257			108,702			7,677
	52,762			24,098			27,236			56,681			3,211
	61,428,918			60,931,720			71,205,565			27,784,740			11,009
$	152,792,568		$	142,924,952		$	165,077,190		$	109,592,126		$	8,566,393
$	255,682,386		$	228,148,749		$	289,235,520		$	280,113,966		$	9,689,381
	(81,714,494	)		(22,431,099	)		(26,363,978	)		(50,116,012	)		(1,025,523	)
	(22,205,615	)		(62,996,710	)		(97,928,110	)		(121,294,567	)		(83,085	)
	1,030,291			204,012			133,758			888,739			(14,380	)
$	152,792,568		$	142,924,952		$	165,077,190		$	109,592,126		$	8,566,393
$	6.41		$	9.81		$	8.38		$	6.02		$	8.81
$	6.41		$	9.81		$	8.38		$	6.02		$	8.81
$	6.80	(3)	$	10.41	(3)	$	8.89	(3)	$	6.39	(3)	$	9.35	(3)
$	6.40		$	9.84		$	8.41		$	6.10		$	8.81
$	84,634,301		$	39,433,276		$	75,794,503		$	28,511,777		$	107,484
	4,467,240			2,644,045			8,493,169			2,374,510			15,212
	63,691,027			100,847,631			80,789,518			78,705,839			8,443,697
$	152,792,568		$	142,924,952		$	165,077,190		$	109,592,126		$	8,566,393
	13,209,259			4,020,739			9,043,779			4,736,166			12,204
	697,229			269,596			1,013,407			394,415			1,727
	9,952,077			10,250,136			9,612,021			12,906,447			958,495
	23,858,565			14,540,471			19,669,207			18,037,028			972,426
$	294,448,953		$	218,260,682		$	257,914,712		$	179,918,512		$	9,462,583

53

February 28, 2009 (Unaudited)

Statements of Assets and Liabilities

	Short-Term Income Fund			Short- Intermediate Bond Fund			Intermediate Tax-Free Fund			Government Income Fund
Assets:
Investments in securities, at value	$	80,556,114		$	191,952,270		$	100,870,132		$	900,350,102
Investments in repurchase agreements		7,150,043			2,611,471			—			9,457,216
Cash		—			—			100,820			—
Cash denominated in foreign currencies		—			—			—			—
Dividends receivable		21,639			—			3,857			—
Interest receivable		309,000			2,531,009			1,105,348			2,557,078
Receivable for investments sold		—			19,775,478			55,035			25,649,046
Receivable for capital stock sold		8,176			1,596,864			41,042			533,273
Receivable for daily variation margin		31,484			—			—			—
Receivable from affiliates		—			—			—			—
Other receivables		39,336			25,081			15,632			245,988
Total assets		88,115,792			218,492,173			102,191,866			938,792,703
Liabilities:
Payable for capital stock redeemed		64,701			274,350			177,056			699,498
Payable for investments purchased		—			56,339,609			2,584,122			199,699,909
Payable on collateral due to broker		7,525,154			1,937,853			—			242,208,601
Payable for foreign tax expense		—			—			—			—
Call Options written, at value		—			—			—			—
Put Options written, at value		—			—			—			—
Payable for income distribution		119,688			353,094			262,835			606,548
Payable to affiliates (Note 5)		17,353			46,787			26,089			234,653
Other liabilities		11,568			36,056			4,962			50,050
Total liabilities		7,738,464			58,987,749			3,055,064			443,499,259
Total Net Assets	$	80,377,328		$	159,504,424		$	99,136,802		$	495,293,444
Net Assets Consist of:
Paid-in-capital	$	96,003,020		$	250,956,804		$	98,980,928		$	540,322,204
Net unrealized appreciation (depreciation) on investments, options, futures contracts and foreign currency translation		(8,867,625	)		(74,232,442	)		780,013			(49,630,480	)
Accumulated net realized gain (loss) on investments, options, futures contracts and foreign currency transactions		(6,837,488	)		(17,473,229	)		(619,985	)		4,241,682
Undistributed net investment income (distributions in excess of net investment income)		79,421			253,291			(4,154	)		360,038
Total Net Assets	$	80,377,328		$	159,504,424		$	99,136,802		$	495,293,444
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Investor Class of Shares:
Net Asset Value, Offering Price and Redemption Proceeds Per Share	$	8.45		$	7.14		$	9.95		$	8.76
Advisor Class of Shares:
Net Asset Value and Redemption Proceeds Per Share	$	8.45		$	7.14		$	—		$	8.76
Offering Price Per Share	$	8.62	(2)	$	7.42	(3)	$	—		$	9.10	(3)
Institutional Class of Shares:
Net Asset Value, Offering Price and Redemption Proceeds Per Share	$	8.45		$	7.13		$	—		$	8.76
Net Assets:
Investor Class of Shares	$	17,497,138		$	51,228,923		$	99,136,802		$	294,367,681
Advisor Class of Shares		1,773,645			3,802,170			—			4,390,834
Institutional Class of Shares		61,106,545			104,473,331			—			196,534,929
Total Net Assets	$	80,377,328		$	159,504,424		$	99,136,802		$	495,293,444
Shares Outstanding:
Investor Class of Shares		2,071,889			7,175,179			9,964,891			33,607,671
Advisor Class of Shares		209,882			532,869			—			501,314
Institutional Class of Shares		7,228,544			14,643,479			—			22,447,823
Total Shares Outstanding		9,510,315			22,351,527			9,964,891			56,556,808
Investments, at identified cost	$	96,612,207		$	268,796,183		$	100,090,119		$	959,437,798

(1) Commenced operations on December 23, 2008.

(2) Computation of offering price per share 100/98.00 of net asset value.

(3) Computation of offering price per share 100/96.25 of net asset value.

(See Notes which are an integral part of the Financial Statements)

54

Marshall Funds

Corporate Income Fund (1)			Aggregate Bond Fund			Core Plus Bond Fund (1)			Government Money Market Fund		Tax-Free Money Market Fund		Prime Money Market Fund
$	12,713,869		$	324,939,836		$	21,688,696		$	321,142,935	$	943,149,336	$	4,773,239,923
	—			15,607,141			—			824,968,799		—		748,714,811
	—			—			—			—		1,020		971,141
	—			—			—			—		—		—
	4,960			—			9,477			—		—		—
	78,418			2,381,445			101,541			794,985		4,134,297		10,514,097
	—			11,098,993			—			—		12,780,930		—
	8,881			338,134			—			9		40,623		2,238,946
	—			—			—			—		—		—
	9,131			—			5,033			—		—		—
	48,285			19,491			35,591			79,188		89,774		426,676
	12,863,544			354,385,040			21,840,338			1,146,985,916		960,195,980		5,536,105,594
	—			228,037			—			—		—		—
	249,428			83,888,205			249,427			—		41,155,860		99,833,889
	—			58,763,000			—			—		—		—
	—			—			—			—		—		—
	—			—			—			—		—		—
	—			—			—			—		—		—
	233			198,271			1,019			300,779		613,744		3,331,976
	1,099			85,212			1,853			284,236		199,468		1,375,658
	344			14,799			1,995			19,534		26,175		100,056
	251,104			143,177,524			254,294			604,549		41,995,247		104,641,579
$	12,612,440		$	211,207,516		$	21,586,044		$	1,146,381,367	$	918,200,733	$	5,431,464,015
$	12,602,589		$	253,635,712		$	21,541,449		$	1,146,381,367	$	918,181,014	$	5,431,782,709
	16,471			(44,941,246	)		52,096			—		—		—
	—			2,390,367			50			—		19,666		(327,870	)
	(6,620	)		122,683			(7,551	)		—		53		9,176
$	12,612,440		$	211,207,516		$	21,586,044		$	1,146,381,367	$	918,200,733	$	5,431,464,015
$	10.02		$	8.55		$	10.02		$	1.00	$	1.00	$	1.00
$	10.02		$	8.55		$	—		$	—	$	—	$	1.00
$	10.41	(3)	$	8.88	(3)	$	—		$	—	$	—	$	—
$	10.02		$	8.55		$	10.02		$	1.00	$	1.00	$	1.00
$	37,472		$	63,357,206		$	1,994		$	686,361,628	$	383,710,385	$	2,400,627,693
	90,039			391,475			—			—		—		128,085,063
	12,484,929			147,458,835			21,584,050			460,019,739		534,490,348		2,902,751,259
$	12,612,440		$	211,207,516		$	21,586,044		$	1,146,381,367	$	918,200,733	$	5,431,464,015
	3,739			7,406,387			199			686,361,899		383,699,994		2,400,826,695
	8,984			45,762			—			—		—		128,115,427
	1,245,767			17,238,904			2,153,579			460,019,468		534,481,020		2,902,840,580
	1,258,490			24,691,053			2,153,778			1,146,381,367		918,181,014		5,431,782,702
$	12,697,398		$	385,488,223		$	21,636,600		$	1,146,111,734	$	943,149,336	$	5,521,954,734

55

Six Months Ended February 28, 2009 (Unaudited)

Statements of Operations

	Large-Cap Value Fund			Large-Cap Growth Fund
Investment Income:
Dividend income	$	3,256,901		$	1,319,083
Interest income		7,480			9,493
Securities lending income		90,700			83,391
Other income		—			—
Total income		3,355,081			1,411,967
Expenses:
Investment adviser fee (Note 5)		738,215			575,443
Shareholder services fees (Note 5)—
Investor Class of Shares		96,852			63,039
Advisor Class of Shares		8,786			6,700
Administrative fees (Note 5)		91,010			70,971
Portfolio accounting fees		46,023			39,678
Recordkeeping fees (Note 5)		81,203			91,794
Custodian fees (Note 5)		19,638			15,345
Registration fees		28,196			31,721
Auditing fees		12,827			12,827
Legal fees		2,941			2,941
Printing and postage		15,596			14,470
Directors’ fees		9,446			9,446
Insurance premiums		1,231			1,077
Distribution services fees (Note 5)—
Advisor Class of Shares		—			—
Treasury temporary guarantee program fees		—			—
Miscellaneous		5,920			5,925
Total expenses		1,157,884			941,377
Deduct (Note 5)—
Expense waivers		—			—
Net expenses		1,157,884			941,377
Net investment income (loss)		2,197,197			470,590
Net Realized and Unrealized Gain (Loss) on Investments, Options, Futures Contracts and Foreign Currency:
Net realized gain (loss) on investment transactions		(26,246,513	)		(45,903,884	)
Net realized gain (loss) on written options		(459,051	)		10,620
Net realized gain on futures contracts		—			—
Net realized loss on foreign currency contracts		—			—
Net change in unrealized appreciation (depreciation) on investments, options, futures contracts and foreign currency translation		(69,674,757	)		(41,657,151	)
Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency		(96,380,321	)		(87,550,415	)
Change in net assets resulting from operations	$	(94,183,124	)	$	(87,079,825	)

(1) Reflects operations for the period from December 23, 2008 (commencement of operations) to February 28, 2009.

(2) Net of foreign taxes withheld of $854 and $134,438, respectively.

(See Notes which are an integral part of the Financial Statements)

56

Marshall Funds

Mid-Cap Value Fund			Mid-Cap Growth Fund			Small-Cap Growth Fund			International Stock Fund			Emerging Markets Equity Fund (1)
$	2,048,928		$	990,193	(2)	$	1,078,027		$	1,874,572	(2)	$	14,378
	22,902			16,694			15,378			4,434			102
	169,022			169,646			527,615			89,883			—
	—			—			—			1,317,745			—
	2,240,852			1,176,533			1,621,020			3,286,634			14,480
	731,276			627,078			998,516			860,424			16,780
	139,618			58,602			116,033			55,890			38
	7,456			4,012			12,909			4,043			3
	90,117			77,340			92,218			79,857			1,552
	45,423			41,638			46,340			20,181			305
	126,047			69,795			100,037			67,841			9,534
	19,402			16,722			19,777			125,393			7,782
	30,891			31,525			32,028			28,330			6,620
	12,827			12,827			12,827			12,827			4,103
	2,941			2,941			2,941			2,941			1,192
	28,077			13,643			17,782			19,311			795
	9,446			9,446			9,446			9,446			3,239
	1,292			1,127			1,332			1,610			133
	—			—			—			—			—
	—			—			—			—			—
	6,076			5,825			5,927			6,618			2,669
	1,250,889			972,521			1,468,113			1,294,712			54,745
	—			—			—			—			(33,730	)
	1,250,889			972,521			1,468,113			1,294,712			21,015
	989,963			204,012			152,907			1,955,259			(6,535	)
	(20,915,045	)		(61,290,143	)		(66,636,476	)		(109,650,204	)		(70,616	)
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			(546,878	)		(12,469	)
	(97,720,319	)		(35,976,727	)		(53,285,353	)		(31,727,249	)		(1,025,523	)
	(118,635,364	)		(97,266,870	)		(119,921,829	)		(141,924,331	)		(1,108,608	)
$	(117,645,401	)	$	(97,062,858	)	$	(119,768,922	)	$	(139,932,409	)	$	(1,115,143	)

57

Six Months Ended February 28, 2009 (Unaudited)

Statements of Operations

	Short-Term Income Fund			Short- Intermediate Bond Fund			Intermediate Tax-Free Fund			Government Income Fund
Investment Income:
Dividend income	$	200,257		$	—		$	48,786		$	—
Interest income		2,123,316			7,120,785			2,127,248			15,412,279
Securities lending income		28,107			84,741			—			886,412
Other income		15,717			—			—			217,089
Total income		2,367,397			7,205,526			2,176,034			16,515,780
Expenses:
Investment adviser fee (Note 5)		88,984			444,172			273,236			1,090,759
Shareholder services fees (Note 5)—
Investor Class of Shares		25,381			84,690			113,848			400,116
Advisor Class of Shares		2,293			5,304			—			5,648
Administrative fees (Note 5)		41,155			102,393			42,124			240,353
Portfolio accounting fees		38,219			53,987			23,384			97,918
Recordkeeping fees (Note 5)		39,609			63,531			13,787			182,734
Custodian fees (Note 5)		8,898			21,779			9,108			39,730
Registration fees		27,494			27,330			11,272			29,265
Auditing fees		12,827			12,827			12,827			12,827
Legal fees		2,941			2,941			2,941			2,941
Printing and postage		4,612			16,015			1,513			33,486
Directors’ fees		9,446			9,446			9,446			9,446
Insurance premiums		478			1,429			410			2,872
Distribution services fees (Note 5)—
Advisor Class of Shares		—			—			—			—
Treasury temporary guarantee program fees		—			—			—			—
Miscellaneous		5,685			5,933			5,336			5,933
Total expenses		308,022			851,777			519,232			2,154,028
Deduct (Note 5)—
Expense waivers		(124,627	)		(151,047	)		(268,767	)		(244,975	)
Net expenses		183,395			700,730			250,465			1,909,053
Net investment income (loss)		2,184,002			6,504,796			1,925,569			14,606,727
Net Realized and Unrealized Gain (Loss) on Investments, Options, Futures Contracts and Foreign Currency:
Net realized gain (loss) on investment transactions		(597,016	)		(2,365,959	)		(629,353	)		11,918,354
Net realized gain (loss) on written options		—			—			—			—
Net realized gain on futures contracts		1,208,247			—			9,784			—
Net realized loss on foreign currency contracts		—			—			—			—
Net change in unrealized appreciation (depreciation) on investments, options, futures contracts and foreign currency translation		(6,061,631	)		(50,301,209	)		(545,960	)		(34,252,783	)
Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency		(5,450,400	)		(52,667,168	)		(1,165,529	)		(22,334,429	)
Change in net assets resulting from operations	$	(3,266,398	)	$	(46,162,372	)	$	760,040		$	(7,727,702	)

(1) Reflects operations for the period from December 23, 2008 (commencement of operations) to February 28, 2009.

(See Notes which are an integral part of the Financial Statements)

58

Marshall Funds

Corporate Income Fund (1)			Aggregate Bond Fund			Core Plus Bond Fund (1)			Government Money Market Fund			Tax-Free Money Market Fund			Prime Money Market Fund
$	18,882		$	—		$	38,439		$	—		$	—		$	—
	60,310			7,419,871			85,748			7,306,181			10,625,341			58,611,149
	—			197,557			—			—			—			—
	—			—			—			—			—			—
	79,192			7,617,428			124,187			7,306,181			10,625,341			58,611,149
	5,237			490,326			9,723			1,023,837			899,279			3,476,392
	3			84,838			1			764,619			494,768			2,905,277
	9			429			—			—			—			168,640
	1,938			112,966			3,598			153,937			134,756			756,256
	3,608			57,931			4,146			80,956			82,964			269,815
	9,533			47,785			6,356			21,551			24,780			226,042
	419			23,954			778			63,589			57,361			264,905
	6,620			26,814			6,620			20,110			22,616			39,297
	4,103			12,827			4,103			12,827			12,827			12,827
	1,192			2,941			1,192			2,941			2,941			2,941
	795			7,058			795			2,328			6,235			34,168
	3,239			9,446			3,239			9,446			9,446			9,446
	133			1,392			133			2,786			3,682			26,586
	—			—			—			—			—			202,368
	—			—			—			138,765			150,760			955,376
	2,669			6,627			2,669			11,313			8,578			21,995
	39,498			885,334			43,353			2,309,005			1,910,993			9,372,331
	(27,965	)		(125,869	)		(21,961	)		(381,784	)		(366,186	)		(90,520	)
	11,533			759,465			21,392			1,927,221			1,544,807			9,281,811
	67,659			6,857,963			102,795			5,378,960			9,080,534			49,329,338
	—			3,882,969			50			—			72,430			15,176
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	16,471			(37,015,616	)		52,096			—			—			—
	16,471			(33,132,647	)		52,146			—			72,430			15,176
$	84,130		$	(26,274,684	)	$	154,941		$	5,378,960		$	9,152,964		$	49,344,514

59

Statements of Changes in Net Assets

	Large-Cap Value Fund						Large-Cap Growth Fund						Mid-Cap Value Fund
	Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008
Increase (Decrease) in Net Assets
Operations—
Net investment income (loss)	$	2,197,197		$	3,769,710		$	470,590		$	(20,450	)	$	989,963		$	1,577,999
Net realized gain (loss) on investments and options transactions		(26,705,564	)		(626,197	)		(45,893,264	)		3,490,338			(20,915,045	)		13,301,158
Net realized gain on futures contracts		—			—			—			—			—			—
Net realized loss on foreign currency contracts		—			—			—			—			—			—
Net realized gain on redemptions in-kind		—			—			—			—			—			1,076,932
Net change in unrealized appreciation/depreciation of investments, options, futures contracts and foreign currency translation		(69,674,757	)		(35,637,231	)		(41,657,151	)		(19,796,319	)		(97,720,319	)		(64,300,224	)
Change in net assets resulting from operations		(94,183,124	)		(32,493,718	)		(87,079,825	)		(16,326,431	)		(117,645,401	)		(48,344,135	)
Distributions to Shareholders—
Distributions to shareholders from net investment income
Investor Class of Shares		(874,565	)		(2,494,603	)		(58,726	)		(129,544	)		(294,257	)		(2,041,191	)
Advisor Class of Shares		(79,122	)		(115,472	)		(6,116	)		(4,859	)		(15,316	)		(49,371	)
Institutional Class of Shares		(1,372,171	)		(755,738	)		(183,730	)		—			(469,726	)		—
Distributions to shareholders from net realized gain on investments
Investor Class of Shares		(24,221	)		(15,406,842	)		—			(20,373,844	)		(7,232,389	)		(62,614,194	)
Advisor Class of Shares		(2,159	)		(572,570	)		—			(766,482	)		(376,448	)		(1,491,159	)
Institutional Class of Shares		(33,771	)		—			—			—			(5,222,252	)		—
Change in net assets resulting from distributions to shareholders		(2,386,009	)		(19,345,225	)		(248,572	)		(21,274,729	)		(13,610,388	)		(66,195,915	)
Capital Stock Transactions—
Proceeds from sale of shares		23,666,721			218,179,141			11,057,956			200,113,251			40,635,001			168,244,523
Net asset value of shares issued to shareholders in payment of distributions declared		1,735,337			17,257,811			207,087			20,378,392			13,064,375			63,350,189
Cost of shares redeemed		(39,312,412	)		(259,001,267	)		(31,859,281	)		(206,751,993	)		(44,474,760	)		(416,764,094	)
Cost of redemptions in-kind		—			—			—			—			—			(10,743,296	)
Redemption Fees		9,747			4,091			1,973			3,502			16,651			33,532
Change in net assets resulting from capital stock transactions		(13,900,607	)		(23,560,224	)		(20,592,265	)		13,743,152			9,241,267			(195,879,146	)
Change in net assets		(110,469,740	)		(75,399,167	)		(107,920,662	)		(23,858,008	)		(122,014,522	)		(310,419,196	)
Net Assets:
Beginning of period		266,006,283			341,405,450			232,407,028			256,265,036			274,807,090			585,226,286
End of period	$	155,536,543		$	266,006,283		$	124,486,366		$	232,407,028		$	152,792,568		$	274,807,090
Undistributed net investment income (distributions in excess of net investment income) included in net assets at end of period	$	915,327		$	1,043,988		$	222,018		$	—		$	1,030,291		$	819,627

(1) Reflects operations for the period from December 23, 2008 (commencement of operations) to February 28, 2009.

(See Notes which are an integral part of the Financial Statements)

60

Marshall Funds

Mid-Cap Growth Fund						Small-Cap Growth Fund						International Stock Fund						Emerging Markets Equity Fund
Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Period Ended February 28, 2009(1) (Unaudited)
$	204,012		$	(1,223,827	)	$	152,907		$	(2,354,529	)	$	1,991,922		$	5,776,381		$	(6,535	)
	(61,290,143	)		16,080,697			(66,636,476	)		(17,978,283	)		(109,650,204	)		(4,692,323	)		(70,616	)
	—			—			—			—			—			—			—
	—			—			—			—			(546,878	)		(1,115,763	)		(12,469	)
	—			—			—			—			—			—			—
	(35,976,727	)		(21,479,607	)		(53,285,353	)		(11,365,462	)		(31,727,249	)		(84,826,316	)		(1,025,523	)
	(97,062,858	)		(6,622,737	)		(119,768,922	)		(31,698,274	)		(139,932,409	)		(84,858,021	)		(1,115,143	)
	—			—			—			—			(1,659,132	)		(2,971,761	)		(1	)
	—			—			—			—			(127,818	)		(87,516	)		(1	)
	—			—			—			—			(5,360,807	)		(3,505,265	)		(7,843	)
	(2,368,141	)		—			—			(46,730,647	)		(1,365,721	)		(29,578,350	)		—
	(162,618	)		—			—			(1,408,805	)		(105,214	)		(871,061	)		—
	(5,871,904	)		—			—			—			(3,501,067	)		(28,472,794	)		—
	(8,402,663	)		—			—			(48,139,452	)		(12,119,759	)		(65,486,747	)		(7,845	)
	17,460,741			256,478,881			30,969,238			259,070,865			13,306,988			148,373,303			9,791,377
	8,280,069			—			—			46,741,612			11,420,414			62,812,652			7,845
	(24,770,884	)		(229,473,653	)		(41,118,813	)		(194,887,931	)		(110,909,548	)		(238,508,553	)		(109,841	)
	—			—			—			—			—			—			—
	2,088			24,805			11,792			11,064			7,317			29,152			—
	972,014			27,030,033			(10,137,783	)		110,935,610			(86,174,829	)		(27,293,446	)		9,689,381
	(104,493,507	)		20,407,296			(129,906,705	)		31,097,884			(238,226,997	)		(177,638,214	)		8,566,393
	247,418,459			227,011,163			294,983,895			263,886,011			347,819,123			525,457,337			—
$	142,924,952		$	247,418,459		$	165,077,190		$	294,983,895		$	109,592,126		$	347,819,123		$	8,566,393
$	204,012		$	—		$	133,758		$	(19,149	)	$	888,739		$	6,044,574		$	(14,380	)

61

Statements of Changes in Net Assets

	Short-Term Income Fund						Short-Intermediate Bond Fund						Intermediate Tax-Free Fund
	Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008
Increase (Decrease) in Net Assets
Operations—
Net investment income (loss)	$	2,184,002		$	5,216,843		$	6,504,796		$	21,555,947		$	1,925,569		$	3,298,164
Net realized gain (loss) on investments and options transactions		(597,016	)		(867,010	)		(2,365,959	)		8,799,542			(629,353	)		1,475,048
Net realized gain on futures contracts		1,208,247			1,143,374			—			—			9,784			60,608
Net realized loss on foreign currency contracts		—			—			—			—			—			—
Net realized gain on redemptions in-kind		—			—			—			—			—			—
Net change in unrealized appreciation/depreciation of investments, options, futures contracts and foreign currency translation		(6,061,631	)		(1,418,168	)		(50,301,209	)		(18,890,686	)		(545,960	)		823,014
Change in net assets resulting from operations		(3,266,398	)		4,075,039			(46,162,372	)		11,464,803			760,040			5,656,834
Distributions to Shareholders—
Distributions to shareholders from net investment income
Investor Class of Shares		(466,138	)		(2,212,995	)		(2,055,434	)		(9,669,757	)		(1,928,954	)		(3,297,741	)
Advisor Class of Shares		(42,371	)		(100,514	)		(130,875	)		(254,119	)		—			—
Institutional Class of Shares		(1,626,692	)		(2,896,561	)		(4,710,064	)		(11,544,363	)		—			—
Distributions to shareholders from net realized gain on investments
Investor Class of Shares		—			—			—			—			(1,080,131	)		—
Advisor Class of Shares		—			—			—			—			—			—
Institutional Class of Shares		—			—			—			—			—			—
Change in net assets resulting from distributions to shareholders		(2,135,201	)		(5,210,070	)		(6,896,373	)		(21,468,239	)		(3,009,085	)		(3,297,741	)
Capital Stock Transactions—
Proceeds from sale of shares		7,646,183			68,750,740			15,725,379			236,841,582			30,170,122			27,107,048
Net asset value of shares issued to shareholders in payment of distributions declared		1,301,905			2,958,966			4,037,753			12,201,083			1,375,823			658,544
Cost of shares redeemed		(26,377,341	)		(86,765,840	)		(107,775,220	)		(485,385,310	)		(19,946,647	)		(22,391,087	)
Cost of redemptions in-kind		—			—			—			—			—			—
Redemption Fees		1,165			9,337			6,675			44,433			14,345			1,116
Change in net assets resulting from capital stock transactions		(17,428,088	)		(15,046,797	)		(88,005,413	)		(236,298,212	)		11,613,643			5,375,621
Change in net assets		(22,829,687	)		(16,181,828	)		(141,064,158	)		(246,301,648	)		9,364,598			7,734,714
Net Assets:
Beginning of period		103,207,015			119,388,843			300,568,582			546,870,230			89,772,204			82,037,490
End of period	$	80,377,328		$	103,207,015		$	159,504,424		$	300,568,582		$	99,136,802		$	89,772,204
Undistributed net investment income (distributions in excess of net investment income) included in net assets at end of period	$	79,421		$	30,620		$	253,291		$	644,868		$	(4,154	)	$	(769	)

(1) Reflects operations for the period from December 23, 2008 (commencement of operations) to February 28, 2009.

(See Notes which are an integral part of the Financial Statements)

62

Marshall Funds

Government Income Fund						Corporate   Income Fund			Aggregate Bond Fund						Core Plus     Bond Fund
Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Period Ended February 28, 2009(1) (Unaudited)			Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Period Ended February 28, 2009(1) (Unaudited)
$	14,606,727		$	32,877,177		$	67,659		$	6,857,963		$	12,605,453		$	102,795
	11,918,354			9,066,881			—			3,882,969			7,951,049			50
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	(34,252,783	)		(13,550,776	)		16,471			(37,015,616	)		(10,007,679	)		52,096
	(7,727,702	)		28,393,282			84,130			(26,274,684	)		10,548,823			154,941
	(8,483,663	)		(21,346,701	)		(60	)		(1,820,020	)		(3,418,997	)		(5	)
	(120,231	)		(242,212	)		(178	)		(9,338	)		(8,123	)		—
	(6,147,002	)		(10,773,880	)		(74,041	)		(4,920,681	)		(8,969,084	)		(110,341	)
	(8,689,377	)		—			—			(2,266,047	)		(460,991	)		—
	(122,947	)		—			—			(12,900	)		(409	)		—
	(6,105,219	)		—			—			(5,839,605	)		(907,877	)		—
	(29,668,439	)		(32,362,793	)		(74,279	)		(14,868,591	)		(13,765,481	)		(110,346	)
	35,804,178			296,810,597			12,532,353			20,307,959			151,343,210			21,557,832
	25,008,611			24,190,980			70,236			13,613,559			12,317,607			109,317
	(149,690,305	)		(393,242,514	)		—			(83,780,451	)		(60,924,191	)		(125,700	)
	—			—			—			—			—			—
	14,042			37,185			—			3			—			—
	(88,863,474	)		(72,203,752	)		12,602,589			(49,858,930	)		102,736,626			21,541,449
	(126,259,615	)		(76,173,263	)		12,612,440			(91,002,205	)		99,519,968			21,586,044
	621,553,059			697,726,322			—			302,209,721			202,689,753			—
$	495,293,444		$	621,553,059		$	12,612,440		$	211,207,516		$	302,209,721		$	21,586,044
$	360,038		$	504,207		$	(6,620	)	$	122,683		$	14,759		$	(7,551	)

63

Statements of Changes in Net Assets

	Government Money Market Fund						Tax-Free Money Market Fund						Prime Money Market Fund
	Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008			Six Months Ended February 28, 2009 (Unaudited)			Year Ended August 31, 2008
Increase (Decrease) in Net Assets
Operations—
Net investment income (loss)	$	5,378,960		$	15,544,066		$	9,080,534		$	18,383,049		$	49,329,338		$	205,089,830
Net realized gain (loss) on investments and options transactions		—			8,398			72,430			53,680			15,176			51,482
Net realized gain on futures contracts		—			—			—			—			—			—
Net realized loss on foreign currency contracts		—			—			—			—			—			—
Net realized gain on redemptions in-kind		—			—			—			—			—			—
Net change in unrealized appreciation/depreciation of investments, options, futures contracts and foreign currency translation		—			—			—			—			—			—
Change in net assets resulting from operations		5,378,960			15,552,464			9,152,964			18,436,729			49,344,514			205,141,312
Distributions to Shareholders—
Distributions to shareholders from net investment income
Investor Class of Shares		(2,870,667	)		(7,846,286	)		(3,716,588	)		(8,949,466	)		(21,493,144	)		(102,050,074	)
Advisor Class of Shares		—			—			—			—			(1,061,136	)		(4,497,782	)
Institutional Class of Shares		(2,508,293	)		(7,697,780	)		(5,363,946	)		(9,433,583	)		(26,775,058	)		(98,541,974	)
Distributions to shareholders from net realized gain on investments
Investor Class of Shares		(1,039	)		(3,424	)		(34,783	)		(15,175	)		—			—
Advisor Class of Shares		—			—			—			—			—			—
Institutional Class of Shares		(763	)		(3,172	)		(44,738	)		(14,748	)		—			—
Change in net assets resulting from distributions to shareholders		(5,380,762	)		(15,550,662	)		(9,160,055	)		(18,412,972	)		(49,329,338	)		(205,089,830	)
Capital Stock Transactions—
Proceeds from sale of shares		2,770,268,524			3,902,414,691			1,029,573,044			2,030,784,160			7,243,762,297			15,473,401,433
Net asset value of shares issued to shareholders in payment of distributions declared		2,460,776			8,425,666			2,251,274			2,980,286			11,887,617			50,032,221
Cost of shares redeemed		(2,210,968,945	)		(3,662,926,925	)		(936,142,289	)		(1,763,519,007	)		(7,590,084,290	)		(14,706,581,607	)
Cost of redemptions in-kind		—			—			—			—			—			—
Redemption Fees		—			—			—			—			—			—
Change in net assets resulting from capital stock transactions		561,760,355			247,913,432			95,682,029			270,245,439			(334,434,376	)		816,852,047
Change in net assets		561,758,553			247,915,234			95,674,938			270,269,196			(334,419,200	)		816,903,529
Net Assets:
Beginning of period		584,622,814			336,707,580			822,525,795			552,256,599			5,765,883,215			4,948,979,686
End of period	$	1,146,381,367		$	584,622,814		$	918,200,733		$	822,525,795		$	5,431,464,015		$	5,765,883,215
Undistributed net investment income (distributions in excess of net investment income) included in net assets at end of period	$	—		$	—		$	53		$	53		$	9,176		$	9,176

(See Notes which are an integral part of the Financial Statements)

64

Financial Highlights—Investor Class of Shares (For a share outstanding throughout each period)

Period Ended August 31,	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency transactions			Total from investment operations			Distributions to shareholders from net investment income			Distributions to shareholders from net realized gain on investments, options, futures contracts and foreign currency transactions			Total distributions			Net asset value, end of period		Total return(1)(5)	Ratios to Average Net Assets(6)						Net assets, end of period (000 omitted)		Portfolio turnover rate(5)
																								Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)
Large-Cap Value Fund
2004(3)	$	12.58	$	0.30		$	1.62		$	1.92		$	(0.30	)	$	—		$	(0.30	)	$	14.20	15.39%	1.22	%	—	%	2.27	%	$	358,354	103	%
2005(3)		14.20		0.33			1.00			1.33			(0.35	)		(0.72	)		(1.07	)		14.46	9.77	1.22		—		2.30			328,848	103
2006(3)		14.46		0.20			1.36			1.56			(0.20	)		(1.88	)		(2.08	)		13.94	11.99	1.23		0.01		1.47			319,834	121
2007(3)		13.94		0.18			1.55			1.73			(0.18	)		(1.19	)		(1.37	)		14.30	12.89	1.22		0.01		1.26			329,192	43
2008(3)		14.30		0.18			(1.58	)		(1.40	)		(0.14	)		(0.69	)		(0.83	)		12.07	(10.48)	1.24		—		1.11			103,979	40
2009(3)(12)		12.07		0.10			(4.50	)		(4.40	)		(0.11	)		(0.00	)		(0.11	)		7.56	(36.66)	1.32		—		2.11			62,618	26
Large-Cap Growth Fund
2004(3)		11.32		0.02			0.78			0.80			(0.02	)		—			(0.02	)		12.10	7.08	1.25		—		0.20			257,684	129
2005(3)		12.10		0.09			1.54			1.63			(0.09	)		—			(0.09	)		13.64	13.51	1.26		—		0.63			237,294	146
2006(3)		13.64		0.00			0.40			0.40			(0.01	)		(1.87	)		(1.88	)		12.16	2.86	1.27		0.01		0.00	(7)		218,109	134
2007(3)		12.16		0.01			1.99			2.00			0.00			(0.43	)		(0.43	)		13.73	16.68	1.27		0.01		0.09			246,811	75
2008(3)		13.73		(0.03	)		(0.73	)		(0.76	)		(0.01	)		(1.14	)		(1.15	)		11.82	(6.62)	1.27		—		(0.10	)		74,507	122
2009(3)(12)		11.82		0.02			(4.62	)		(4.60	)		(0.01	)		—			(0.01	)		7.21	(38.93)	1.39		—		0.47			41,433	72
Mid-Cap Value Fund
2004(3)		12.51		0.05			2.14			2.19			(0.01	)		(0.45	)		(0.46	)		14.24	17.76	1.22		—		0.44			463,104	33
2005(3)		14.24		0.03			2.61			2.64			(0.06	)		(0.96	)		(1.02	)		15.86	19.16	1.20		—		0.25			637,293	37
2006(3)		15.86		0.07			0.70			0.77			(0.05	)		(1.50	)		(1.55	)		15.08	5.12	1.19		0.01		0.47			595,968	63
2007(3)		15.08		0.06			1.94			2.00			(0.07	)		(1.38	)		(1.45	)		15.63	13.52	1.21		0.01		0.37			572,444	62
2008(3)		15.63		0.06			(1.49	)		(1.43	)		(0.06	)		(1.99	)		(2.05	)		12.15	(10.27)	1.24		—		0.35			166,722	41
2009(3)(12)		12.15		0.04			(5.21	)		(5.17	)		(0.02	)		(0.55	)		(0.57	)		6.41	(43.25)	1.38		—		0.90			84,635	34
Mid-Cap Growth Fund
2004(3)		11.57		(0.10	)(4)		(0.32	)		(0.42	)		—			—			—			11.15	(3.63)	1.24		—		(0.85	)		184,632	240
2005(3)		11.15		(0.10	)		2.60			2.50			—			—			—			13.65	22.42	1.29		0.01		(0.72	)		172,137	188
2006(3)		13.65		(0.09	)		0.87			0.78			—			—			—			14.43	5.71	1.30		0.01		(0.64	)		175,529	134
2007(3)		14.43		(0.10	)		3.13			3.03			—			—			—			17.46	21.00	1.27		0.01		(0.61	)		222,095	169
2008(3)		17.46		(0.30	)		(0.06	)		(0.36	)		—			—			—			17.10	(2.06)	1.26		—		(0.58	)		71,086	186
2009(3)(12)		17.10		0.00			(6.69	)		(6.69	)		—			(0.60	)		(0.60	)		9.81	(39.34)	1.34		—		0.07			39,433	122
Small-Cap Growth Fund
2004(3)		11.83		(0.17	)(4)		0.94			0.77			—			—			—			12.60	6.51	1.58		—		(1.28	)		129,875	267
2005(3)		12.60		(0.18	)		3.60			3.42			—			—			—			16.02	27.14	1.55		0.01		(1.21	)		155,327	195
2006(3)		16.02		(0.14	)		1.93			1.79			—			(1.37	)		(1.37	)		16.44	11.37	1.54		—		(0.93	)		193,170	148
2007(3)		16.44		(0.15	)		4.05			3.90			—			(1.33	)		(1.33	)		19.01	24.73	1.53		0.01		(0.91	)		255,894	176
2008(3)		19.01		(0.22	)		(1.27	)		(1.49	)		—			(3.33	)		(3.33	)		14.19	(10.37)	1.51		—		(0.92	)		144,938	174
2009(3)(12)		14.19		0.00			(5.81	)		(5.81	)		—			—			—			8.38	(40.94)	1.59		—		0.02			75,794	123
International Stock Fund
2004(3)		10.02		0.00	(4)		1.02			1.02			(0.04	)		—			(0.04	)		11.00	10.20	1.50		0.02		0.00	(7)		216,082	137
2005(3)		11.00		0.09			2.33			2.42			(0.07	)		—			(0.07	)		13.35	22.03	1.48		0.02		0.70			191,274	150
2006(3)		13.35		0.12			3.06			3.18			(0.12	)		—			(0.12	)		16.41	23.90	1.49		0.02		0.75			233,098	146
2007(3)		16.41		0.21			2.64			2.85			(0.04	)		(1.88	)		(1.92	)		17.34	18.37	1.45		0.02		1.23			267,675	98
2008(3)		17.34		0.19			(2.92	)		(2.73	)		(0.20	)		(2.00	)		(2.20	)		12.41	(18.11)	1.47		—		0.74			89,374	62
2009(3)(12)		12.41		0.19			(5.98	)		(5.79	)		(0.33	)		(0.27	)		(0.60	)		6.02	(47.53)	1.69		—		2.19			28,512	52
Emerging Markets Equity Fund
2009(3)(11)		10.00		(0.00	)		(1.18	)		(1.18	)		(0.01	)		—			(0.01	)		8.81	(11.83)	1.50		2.01		(0.76	)		107	16

(See Notes which are an integral part of the Financial Statements)

65

Financial Highlights—Investor Class of Shares (For a share outstanding throughout each period)

Period Ended August 31,	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency transactions			Total from investment operations			Distributions to shareholders from net investment income			Distributions to shareholders from net realized gain on investments, options, futures contracts and foreign currency transactions			Total distributions			Net asset value, end of period		Total return(1)(5)	Ratios to Average Net Assets(6)						Net assets, end of period (000 omitted)		Portfolio turnover rate(5)
																								Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)
Short-Term Income Fund
2004(3)	$	9.32	$	0.27	(4)	$	(0.02	)	$	0.25		$	(0.36	)	$	—		$	(0.36	)	$	9.21	2.75%	0.54	%	0.57	%	2.94	%	$	148,735	40	%
2005(3)		9.21		0.26			(0.10	)		0.16			(0.34	)		—			(0.34	)		9.03	1.74	0.54		0.57		2.95			135,894	52
2006(3)		9.03		0.31			0.04			0.35			(0.38	)		—			(0.38	)		9.00	3.92	0.58		0.58		3.45			126,788	19
2007(3)		9.00		0.38			0.04			0.42			(0.40	)		—			(0.40	)		9.02	4.78	0.58		0.52		4.28			75,677	52
2008(3)		9.02		0.41			(0.11	)		0.30			(0.40	)		—			(0.40	)		8.92	3.38	0.60		0.20		4.48			28,232	47
2009(3)(12)		8.92		0.20			(0.47	)		(0.27	)		(0.20	)		—			(0.20	)		8.45	(3.06)	0.60		0.28		4.72			17,497	29
Short-Intermediate Bond Fund
2004(3)		9.47		0.38	(4)		0.06			0.44			(0.41	)		—			(0.41	)		9.50	4.68	0.72		0.29		3.98			625,908	278
2005(3)		9.50		0.35			(0.08	)		0.27			(0.37	)		—			(0.37	)		9.40	2.90	0.73		0.30		3.70			646,961	357
2006(3)		9.40		0.40			(0.17	)		0.23			(0.40	)		—			(0.40	)		9.23	2.56	0.73		0.30		4.39			690,447	430
2007(3)		9.23		0.43			(0.08	)		0.35			(0.42	)		—			(0.42	)		9.16	3.86	0.75		0.26		4.56			359,507	421
2008(3)		9.16		0.44			(0.26	)		0.18			(0.43	)		—			(0.43	)		8.91	1.91	0.80		0.06		4.69			95,322	293
2009(3)(12)		8.91		0.23			(1.76	)		(1.53	)		(0.24	)		—			(0.24	)		7.14	(17.30)	0.80		0.14		5.74			51,229	200
Intermediate Tax-Free Fund
2004(3)		10.50		0.37			0.13			0.50			(0.37	)		(0.02	)		(0.39	)		10.61	4.88	0.62		0.50		3.51			96,952	8
2005(3)		10.61		0.37			(0.18	)		0.19			(0.36	)		(0.01	)		(0.37	)		10.43	1.83	0.61		0.50		3.48			90,619	57
2006(3)		10.43		0.35			(0.14	)		0.21			(0.35	)		(0.26	)		(0.61	)		10.03	2.12	0.65		0.51		3.48			80,217	31
2007(3)		10.03		0.36			(0.10	)		0.26			(0.36	)		—			(0.36	)		9.93	2.59	0.60		0.53		3.56			82,037	48
2008(3)		9.93		0.39			0.28			0.67			(0.39	)		—			(0.39	)		10.21	6.84	0.55		0.58		3.84			89,772	196
2009(3)(12)		10.21		0.21			(0.15	)		0.06			(0.21	)		(0.11	)		(0.32	)		9.95	0.71	0.55		0.59		4.22			99,137	58
Government Income Fund
2004(3)		9.60		0.43	(4)		0.09			0.52			(0.48	)		—			(0.48	)		9.64	5.50	0.87		0.33		4.49			344,253	113
2005(3)		9.64		0.37			(0.03	)		0.34			(0.38	)		—			(0.38	)		9.60	3.61	0.88		0.33		3.75			475,920	561
2006(3)		9.60		0.42			(0.18	)		0.24			(0.42	)		—			(0.42	)		9.42	2.57	0.86		0.34		4.50			582,466	760
2007(3)		9.42		0.42			0.02			0.44			(0.42	)		—			(0.42	)		9.44	4.71	0.89		0.29		4.44			550,614	686
2008(3)		9.44		0.45			(0.07	)		0.38			(0.44	)		—			(0.44	)		9.38	4.01	0.80		0.06		4.68			367,555	284
2009(3)(12)		9.38		0.24			(0.36	)		(0.12	)		(0.24	)		(0.26	)		(0.50	)		8.76	(1.30)	0.80		0.09		5.26			294,367	186
Corporate Income Fund
2009(3)(11)		10.00		0.05			0.03			0.08			(0.06	)		—			(0.06	)		10.02	0.79	0.80		1.33		2.85			37	0
Aggregate Bond Fund
2007(3)(10)		10.00		0.11			0.10			0.21			(0.11	)		—			(0.11	)		10.10	2.11	0.80		0.14		4.38			59,013	129
2008(3)		10.10		0.47			(0.04	)		0.43			(0.46	)		(0.06	)		(0.52	)		10.01	4.32	0.80		0.08		4.64			79,471	333
2009(3)(12)		10.01		0.25			(1.15	)		(0.90	)		(0.24	)		(0.32	)		(0.56	)		8.55	(9.08)	0.80		0.10		5.46			63,357	246
Core Plus Bond Fund
2009(3)(11)		10.00		0.04			0.02			0.06			(0.04	)		—			(0.04	)		10.02	0.64	0.80		0.56		2.49			2	1
Government Money Market Fund
2004(8)		1.00		0.00			—			0.00			0.00			—			0.00			1.00	0.23	0.45		0.17		0.96			118,401	—
2005		1.00		0.02			—			0.02			(0.02	)		—			(0.02	)		1.00	2.11	0.45		0.18		2.09			121,712	—
2006		1.00		0.04			—			0.04			(0.04	)		—			(0.04	)		1.00	4.16	0.45		0.17		4.09			92,339	—
2007		1.00		0.05			—			0.05			(0.05	)		—			(0.05	)		1.00	4.99	0.45		0.13		4.88			199,797	—
2008		1.00		0.03			—			0.03			(0.03	)		—			(0.03	)		1.00	3.19	0.45		0.10		2.91			309,487	—
2009(12)		1.00		0.01			—			0.01			(0.01	)		—			(0.01	)		1.00	0.50	0.48	(13)	0.07		0.94			686,361	—
Tax-Free Money Market Fund
2005(9)		1.00		0.02			—			0.02			(0.02	)		—			(0.02	)		1.00	1.60	0.45		0.14		1.76			142,826	—
2006		1.00		0.03			—			0.03			(0.03	)		—			(0.03	)		1.00	2.84	0.45		0.13		2.85			192,603	—
2007		1.00		0.03			—			0.03			(0.03	)		—			(0.03	)		1.00	3.33	0.45		0.13		3.28			308,414	—
2008		1.00		0.03			—			0.03			(0.03	)		—			(0.03	)		1.00	2.57	0.45		0.09		2.48			424,211	—
2009(12)		1.00		0.01			—			0.01			(0.01	)		—			(0.01	)		1.00	0.96	0.48	(13)	0.08		1.88			383,710	—

(See Notes which are an integral part of the Financial Statements)

66

Financial Highlights—Investor Class of Shares (For a share outstanding throughout each period)

Period Ended August 31,	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency transactions		Total from investment operations		Distributions to shareholders from net investment income			Distributions to shareholders from net realized gain on investments, options, futures contracts and foreign currency transactions		Total distributions			Net asset value, end of period		Total return(1)(5)		Ratios to Average Net Assets(6)						Net assets, end of period (000 omitted)		Portfolio turnover rate(5)
																						Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)
Prime Money Market Fund
2004	$	1.00	$	0.01	(4)	$	—	$	0.01	$	(0.01	)	$	—	$	(0.01	)	$	1.00	0.76	%	0.45	%	0.04	%	0.76	%	$	2,123,605	—	%
2005		1.00		0.02			—		0.02		(0.02	)		—		(0.02	)		1.00	2.22		0.45		0.04		2.20			2,078,992	—
2006		1.00		0.04			—		0.04		(0.04	)		—		(0.04	)		1.00	4.25		0.45		0.04		4.19			2,453,274	—
2007		1.00		0.05			—		0.05		(0.05	)		—		(0.05	)		1.00	5.06		0.45		0.02		4.95			2,753,457	—
2008		1.00		0.04			—		0.04		(0.04	)		—		(0.04	)		1.00	3.65		0.45		0.01		3.65			2,524,244	—
2009(12)		1.00		0.01			—		0.01		(0.01	)		—		(0.01	)		1.00	0.92		0.49	(13)	0.00	(7)	1.85			2,400,628	—

(1) Based on net asset value.

(2) This voluntary expense decrease is reflected in both the expense and net investment income (loss) ratios.

(3) Redemption fees consisted of per share amounts less than $0.01.

(4) Per share information is based on average shares outstanding.

(5) Not annualized for periods less than one year.

(6) Annualized for periods less than one year.

(7) Represents less than 0.005%.

(8) Reflects operations for the period from May 17, 2004 (commencement of operations) to August 31, 2004.

(9) Reflects operations for the period from September 22, 2004 (commencement of operations) to August 31, 2005.

(10) Reflects operations for the period from June 1, 2007 (commencement of operations) to August 31, 2007.

(11) Reflects operations for the period from December 23, 2008 (commencement of operations) to February 28, 2009.

(12) For the six months ended February 28, 2009 (Unaudited).

(13) Participation fees for the Treasury’s Temporary Guarantee Program in the Government Money Market Fund, Tax-Free Money Market Fund and Prime Money Market Fund amounted to 0.03%, 0.03% and 0.04%, respectively.

(See Notes which are an integral part of the Financial Statements)

67

Financial Highlights—Advisor Class of Shares (For a share outstanding throughout each period)

Period Ended August 31,	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency transactions			Total from investment operations			Dividends to shareholders from net investment income			Distributions to shareholders from net realized gain on investments, options, futures contracts and foreign currency transactions			Total distributions			Net asset value, end of period		Total return(1)(5)	Ratios to Average Net Assets(6)						Net assets, end of period (000 omitted)		Portfolio turnover rate(5)
																								Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)
Large-Cap Value Fund
2004(3)	$	12.58	$	0.30		$	1.62		$	1.92		$	(0.30	)	$	—		$	(0.30	)	$	14.20	15.39%	1.22	%	0.25	%	2.30	%	$	10,255	103	%
2005(3)		14.20		0.32			1.01			1.33			(0.35	)		(0.72	)		(1.07	)		14.46	9.77	1.22		0.25		2.30			11,918	103
2006(3)		14.46		0.20			1.36			1.56			(0.20	)		(1.88	)		(2.08	)		13.94	11.99	1.23		0.05		1.47			12,110	121
2007(3)		13.94		0.18			1.55			1.73			(0.18	)		(1.19	)		(1.37	)		14.30	12.89	1.22		0.01		1.26			12,213	43
2008(3)		14.30		0.16			(1.56	)		(1.40	)		(0.14	)		(0.69	)		(0.83	)		12.07	(10.48)	1.24		—		1.16			9,455	40
2009(3)(10)		12.07		0.10			(4.50	)		(4.40	)		(0.11	)		(0.00	)		(0.11	)		7.56	(36.66)	1.32		—		2.10			5,600	26
Large-Cap Growth Fund
2004(3)		11.32		0.02			0.78			0.80			(0.02	)		—			(0.02	)		12.10	7.08	1.25		0.25		0.20			8,126	129
2005(3)		12.10		0.08			1.55			1.63			(0.09	)		—			(0.09	)		13.64	13.51	1.26		0.25		0.63			8,796	146
2006(3)		13.64		0.00			0.40			0.40			(0.01	)		(1.87	)		(1.88	)		12.16	2.86	1.27		0.05		0.00	(7)		9,316	134
2007(3)		12.16		0.01			1.99			2.00			0.00			(0.43	)		(0.43	)		13.73	16.68	1.27		0.01		0.09			9,454	75
2008(3)		13.73		(0.01	)		(0.75	)		(0.76	)		(0.01	)		(1.14	)		(1.15	)		11.82	(6.62)	1.27		—		(0.07	)		7,948	122
2009(3)(10)		11.82		0.02			(4.62	)		(4.60	)		(0.01	)		—			(0.01	)		7.21	(38.93)	1.39		—		0.47			4,370	72
Mid-Cap Value Fund
2004(3)		12.51		0.05			2.14			2.19			(0.01	)		(0.45	)		(0.46	)		14.24	17.76	1.22		0.25		0.42			8,456	33
2005(3)		14.24		0.03			2.61			2.64			(0.06	)		(0.96	)		(1.02	)		15.86	19.16	1.20		0.25		0.25			12,497	37
2006(3)		15.86		0.07			0.70			0.77			(0.05	)		(1.50	)		(1.55	)		15.08	5.12	1.19		0.05		0.47			12,914	63
2007(3)		15.08		0.06			1.94			2.00			(0.07	)		(1.38	)		(1.45	)		15.63	13.52	1.21		0.01		0.37			12,782	62
2008(3)		15.63		0.04			(1.47	)		(1.43	)		(0.06	)		(1.99	)		(2.05	)		12.15	(10.27)	1.24		—		0.35			9,076	41
2009(3)(10)		12.15		0.04			(5.21	)		(5.17	)		(0.02	)		(0.55	)		(0.57	)		6.41	(43.25)	1.38		—		0.88			4,467	34
Mid-Cap Growth Fund
2004(3)		11.57		(0.10	)(4)		(0.32	)		(0.42	)		—			—			—			11.15	(3.63)	1.24		0.25		(0.84	)		4,209	240
2005(3)		11.15		(0.10	)		2.60			2.50			—			—			—			13.65	22.42	1.29		0.26		(0.72	)		4,784	188
2006(3)		13.65		(0.10	)		0.88			0.78			—			—			—			14.43	5.71	1.30		0.05		(0.64	)		4,396	134
2007(3)		14.43		(0.11	)		3.14			3.03			—			—			—			17.46	21.00	1.27		0.01		(0.61	)		4,916	169
2008(3)		17.46		(0.10	)		(0.26	)		(0.36	)		—			—			—			17.10	(2.06)	1.26		—		(0.55	)		4,804	186
2009(3)(10)		17.10		0.00			(6.69	)		(6.69	)		—			(0.60	)		(0.60	)		9.81	(39.34)	1.34		—		0.07			2,644	122
Small-Cap Growth Fund
2004(3)		11.83		(0.17	)(4)		0.94			0.77			—			—			—			12.60	6.51	1.58		0.25		(1.29	)		4,857	267
2005(3)		12.60		(0.18	)		3.60			3.42			—			—			—			16.02	27.14	1.55		0.26		(1.21	)		6,173	195
2006(3)		16.02		(0.15	)		1.94			1.79			—			(1.37	)		(1.37	)		16.44	11.37	1.54		0.04		(0.93	)		6,976	148
2007(3)		16.44		(0.17	)		4.07			3.90			—			(1.33	)		(1.33	)		19.01	24.73	1.53		0.01		(0.91	)		7,992	176
2008(3)		19.01		(0.05	)		(1.44	)		(1.49	)		—			(3.33	)		(3.33	)		14.19	(10.37)	1.51		—		(0.84	)		15,423	174
2009(3)(10)		14.19		0.00			(5.81	)		(5.81	)		—			—			—			8.38	(40.94)	1.59		—		0.03			8,493	123
International Stock Fund
2004(3)		10.01		0.00	(4)		1.03			1.03			(0.04	)		—			(0.04	)		11.00	10.28	1.50		0.27		0.03			4,455	137
2005(3)		11.00		0.09			2.33			2.42			(0.07	)		—			(0.07	)		13.35	22.03	1.48		0.27		0.70			5,449	150
2006(3)		13.35		0.12			3.06			3.18			(0.12	)		—			(0.12	)		16.41	23.90	1.49		0.05		0.75			7,739	146
2007(3)		16.41		0.20			2.65			2.85			(0.04	)		(1.88	)		(1.92	)		17.34	18.37	1.45		0.02		1.23			7,771	98
2008(3)		17.34		0.18			(2.91	)		(2.73	)		(0.20	)		(2.00	)		(2.20	)		12.41	(18.11)	1.47		—		1.09			5,287	62
2009(3)(10)		12.41		0.12			(5.91	)		(5.79	)		(0.33	)		(0.27	)		(0.60	)		6.02	(47.53)	1.69		—		2.27			2,374	52
Emerging Markets Equity Fund
2009(3)(9)		10.00		(0.00	)		(1.18	)		(1.18	)		(0.01	)		—			(0.01	)		8.81	(11.83)	1.50		2.01		(0.49	)		15	16

(See Notes which are an integral part of the Financial Statements)

68

Financial Highlights—Advisor Class of Shares (For a share outstanding throughout each period)

Period Ended August 31,	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency transactions			Total from investment operations			Dividends to shareholders from net investment income			Distributions to shareholders from net realized gain on investments, options, futures contracts and foreign currency transactions			Total distributions			Net asset value, end of period		Total return(1)(5)	Ratios to Average Net Assets(6)						Net assets, end of period (000 omitted)		Portfolio turnover rate(5)
																								Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)
Short-Term Income Fund
2004(3)	$	9.32	$	0.25	(4)	$	(0.02	)	$	0.23		$	(0.34	)	$	—		$	(0.34	)	$	9.21	2.51%	0.77	%	0.59	%	2.70	%	$	2,914	40	%
2005(3)		9.21		0.25			(0.11	)		0.14			(0.32	)		—			(0.32	)		9.03	1.51	0.77		0.59		2.72			2,792	52
2006(3)		9.03		0.29			0.04			0.33			(0.36	)		—			(0.36	)		9.00	3.69	0.81		0.39		3.22			2,664	19
2007(3)		9.00		0.37			0.04			0.41			(0.39	)		—			(0.39	)		9.02	4.60	0.76		0.32		4.11			2,526	52
2008(3)		9.02		0.40			(0.10	)		0.30			(0.40	)		—			(0.40	)		8.92	3.38	0.60		0.20		4.46			2,047	47
2009(3)(10)		8.92		0.20			(0.47	)		(0.27	)		(0.20	)		—			(0.20	)		8.45	(3.06)	0.60		0.28		4.74			1,774	29
Short-Intermediate Bond Fund
2004(3)		9.47		0.39	(4)		0.02			0.41			(0.38	)		—			(0.38	)		9.50	4.44	0.95		0.31		4.06			6,865	279
2005(3)		9.50		0.33			(0.08	)		0.25			(0.35	)		—			(0.35	)		9.40	2.66	0.96		0.32		3.47			7,123	357
2006(3)		9.40		0.38			(0.17	)		0.21			(0.38	)		—			(0.38	)		9.23	2.33	0.96		0.11		4.16			6,549	430
2007(3)		9.23		0.40			(0.07	)		0.33			(0.40	)		—			(0.40	)		9.16	3.68	0.93		0.07		4.39			5,829	421
2008(3)		9.16		0.43			(0.26	)		0.17			(0.43	)		—			(0.43	)		8.90	1.80	0.80		0.06		4.69			5,137	293
2009(3)(10)		8.90		0.23			(1.75	)		(1.52	)		(0.24	)		—			(0.24	)		7.14	(17.20)	0.80		0.14		5.83			3,802	200
Government Income Fund
2004(3)		9.60		0.41	(4)		0.08			0.49			(0.45	)		—			(0.45	)		9.64	5.26	1.10		0.35		4.30			5,579	113
2005(3)		9.64		0.34			(0.02	)		0.32			(0.36	)		—			(0.36	)		9.60	3.37	1.11		0.35		3.52			6,519	561
2006(3)		9.60		0.40			(0.18	)		0.22			(0.40	)		—			(0.40	)		9.42	2.34	1.09		0.15		4.27			6,425	760
2007(3)		9.42		0.41			0.01			0.42			(0.40	)		—			(0.40	)		9.44	4.53	1.07		0.11		4.27			5,808	686
2008(3)		9.44		0.45			(0.07	)		0.38			(0.44	)		—			(0.44	)		9.38	4.01	0.80		0.06		4.66			4,871	284
2009(3)(10)		9.38		0.24			(0.36	)		(0.12	)		(0.24	)		(0.26	)		(0.50	)		8.76	(1.30)	0.80		0.09		5.28			4,391	186
Corporate Income Fund
2009(3)(9)		10.00		0.05			0.03			0.08			(0.06	)		—			(0.06	)		10.02	0.79	0.80		1.33		3.26			90	0
Aggregate Bond Fund
2007(3)(8)		10.00		0.11			0.09			0.20			(0.11	)		—			(0.11	)		10.09	2.00	0.80		0.14		4.38			20	129
2008(3)		10.09		0.47			(0.03	)		0.44			(0.46	)		(0.06	)		(0.52	)		10.01	4.44	0.80		0.08		4.55			358	333
2009(3)(10)		10.01		0.25			(1.15	)		(0.90	)		(0.24	)		(0.32	)		(0.56	)		8.55	(9.08)	0.80		0.10		5.54			392	246
Prime Money Market Fund
2004		1.00		0.01	(4)		—			0.01			(0.01	)		—			(0.01	)		1.00	0.46	0.75		0.04		0.45			84,397	—
2005		1.00		0.02			—			0.02			(0.02	)		—			(0.02	)		1.00	1.91	0.75		0.04		1.90			75,993	—
2006		1.00		0.04			—			0.04			(0.04	)		—			(0.04	)		1.00	3.94	0.75		0.04		3.89			90,776	—
2007		1.00		0.05			—			0.05			(0.05	)		—			(0.05	)		1.00	4.75	0.75		0.02		4.65			115,093	—
2008		1.00		0.03			—			0.03			(0.03	)		—			(0.03	)		1.00	3.34	0.75		0.01		3.20			140,379	—
2009(10)		1.00		0.01			—			0.01			(0.01	)		—			(0.01	)		1.00	0.77	0.79	(11)	0.00	(7)	1.57			128,085	—

(1) Based on net asset value, which does not reflect the sales charge, or contingent deferred sales charge, if applicable.

(2) This voluntary expense decrease is reflected in both the expense and net investment income (loss) ratios.

(3) Redemption fees consisted of per share amounts less than $0.01, except for International Stock Fund, which was $0.01 for the year ended August 31, 2004.

(4) Per share information is based on average shares outstanding.

(5) Not annualized for periods less than one year.

(6) Annualized for periods less than one year.

(7) Represents less than 0.005%.

(8) Reflects operations for the period from June 1, 2007 (commencement of operations) to August 31, 2007.

(9) Reflects operations for the period from December 23, 2008 (commencement of operations) to February 28, 2009.

(10) For the six months ended February 28, 2009 (Unaudited).

(11) Participation fees for the Treasury’s Temporary Guarantee Program in the Prime Money Market Fund amounted to 0.04%.

(See Notes which are an integral part of the Financial Statements)

69

Financial Highlights—Institutional Class of Shares (For a share outstanding throughout each period)

Period Ended August 31,	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency transactions			Total from investment operations			Dividends to shareholders from net investment income			Distributions to shareholders from net realized gain on investments, options, futures contracts and foreign currency transactions			Total distributions			Net asset value, end of period		Total return(1)(5)	Ratios to Average Net Assets(6)					Net assets, end of period (000 omitted)		Portfolio turnover rate(5)
																								Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)
Large-Cap Value Fund
2008(3)(11)	$	12.99	$	0.10		$	(0.95	)	$	(0.85	)	$	(0.07	)	$	—		$	(0.07	)	$	12.07	(6.57)%	1.00	%	—	%	1.54%	$	152,572	40	%
2009(3)(13)		12.07		0.12			(4.50	)		(4.38	)		(0.12	)		(0.00	)		(0.12	)		7.57	(36.52)	1.07		—		2.34		87,319	26
Large-Cap Growth Fund
2008(3)(11)		11.97		0.01			(0.14	)		(0.13	)		—			—			—			11.84	(1.09)	1.03		—		0.30		149,952	122
2009(3)(13)		11.84		0.03			(4.62	)		(4.59	)		(0.02	)		—			(0.02	)		7.23	(38.81)	1.14		—		0.70		78,683	72
Mid-Cap Value Fund
2008(3)(11)		12.55		0.04			(0.42	)		(0.38	)		—			—			—			12.17	(3.03)	1.02		—		0.59		99,009	41
2009(3)(13)		12.17		0.04			(5.21	)		(5.17	)		(0.05	)		(0.55	)		(0.60	)		6.40	(43.24)	1.13		—		1.20		63,691	34
Mid-Cap Growth Fund
2008(3)(11)		17.09		(0.01	)		0.06			0.05			—			—			—			17.14	0.29	1.01		—		(0.19)		171,529	186
2009(3)(13)		17.14		0.02			(6.72	)		(6.70	)		—			(0.60	)		(0.60	)		9.84	(39.30)	1.09		—		0.32		100,848	122
Small-Cap Growth Fund
2008(3)(11)		14.73		(0.03	)		(0.48	)		(0.51	)		—			—			—			14.22	(3.46)	1.27		—		(0.49)		134,623	174
2009(3)(13)		14.22		0.02			(5.83	)		(5.81	)		—			—			—			8.41	(40.86)	1.34		—		0.29		80,790	123
International Stock Fund
2004(3)		10.11		0.04	(4)		1.02			1.06			(0.06	)		—			(0.06	)		11.11	10.52	1.25		0.02		0.36		242,089	137
2005(3)		11.11		0.16			2.32			2.48			(0.07	)		—			(0.07	)		13.52	22.38	1.23		0.02		0.95		168,128	150
2006(3)		13.52		0.17			3.07			3.24			(0.15	)		—			(0.15	)		16.61	24.14	1.24		0.02		1.00		188,715	146
2007(3)		16.61		0.24			2.68			2.92			(0.07	)		(1.88	)		(1.95	)		17.58	18.65	1.20		0.02		1.48		250,012	98
2008(3)		17.58		0.23			(2.94	)		(2.71	)		(0.24	)		(2.00	)		(2.24	)		12.63	(17.74)	1.23		—		1.58		253,158	62
2009(3)(13)		12.63		0.24			(6.08	)		(5.84	)		(0.42	)		(0.27	)		(0.69	)		6.10	(47.25)	1.44		—		2.36		78,706	52
Emerging Markets Equity Fund
2009(3)(12)		10.00		(0.01	)		(1.17	)		(1.18	)		(0.01	)		—			(0.01	)		8.81	(11.82)	1.25		2.01		(0.38)		8,444	16
Short-Term Income Fund
2007(3)(10)		9.02		0.11			—			0.11			(0.11	)		—			(0.11	)		9.02	1.20	0.35		0.23		4.65		41,186	52
2008(3)		9.02		0.43			(0.09	)		0.34			(0.43	)		—			(0.43	)		8.93	3.76	0.35		0.20		4.69		72,928	47
2009(3)(13)		8.93		0.21			(0.48	)		(0.27	)		(0.21	)		—			(0.21	)		8.45	(3.05)	0.35		0.28		4.98		61,106	29
Short-Intermediate Bond Fund
2007(3)(10)		9.17		0.11			(0.01	)		0.10			(0.11	)		—			(0.11	)		9.16	1.12	0.55		0.08		4.90		181,534	421
2008(3)		9.16		0.45			(0.26	)		0.19			(0.45	)		—			(0.45	)		8.90	2.05	0.55		0.06		4.94		200,110	293
2009(3)(13)		8.90		0.24			(1.76	)		(1.52	)		(0.25	)		—			(0.25	)		7.13	(17.22)	0.55		0.14		5.95		104,473	200
Government Income Fund
2007(3)(10)		9.41		0.11			0.03			0.14			(0.11	)		—			(0.11	)		9.44	1.54	0.55		0.13		4.87		141,305	686
2008(3)		9.44		0.46			(0.07	)		0.39			(0.46	)		—			(0.46	)		9.37	4.16	0.55		0.06		4.88		249,127	284
2009(3)(13)		9.37		0.25			(0.35	)		(0.10	)		(0.25	)		(0.26	)		(0.51	)		8.76	(1.07)	0.55		0.09		5.50		196,535	186
Corporate Income Fund
2009(3)(12)		10.00		0.06			0.02			0.08			(0.06	)		—			(0.06	)		10.02	0.84	0.55		1.33		3.22		12,485	0
Aggregate Bond Fund
2007(3)(10)		10.00		0.12			0.10			0.22			(0.12	)		—			(0.12	)		10.10	2.18	0.55		0.14		4.63		143,657	129
2008(3)		10.10		0.50			(0.04	)		0.46			(0.49	)		(0.06	)		(0.55	)		10.01	4.58	0.55		0.08		4.87		222,380	333
2009(3)(13)		10.01		0.26			(1.15	)		(0.89	)		(0.25	)		(0.32	)		(0.57	)		8.55	(8.97)	0.55		0.10		5.67		147,459	246
Core Plus Bond Fund
2009(3)(12)		10.00		0.05			0.02			0.07			(0.05	)		—			(0.05	)		10.02	0.72	0.55		0.56		2.64		21,584	1

(See Notes which are an integral part of the Financial Statements)

70

Financial Highlights—Institutional Class of Shares (For a share outstanding throughout each period)

Period Ended August 31,	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency transactions		Total from investment operations		Dividends to shareholders from net investment income			Distributions to shareholders from net realized gain on investments, options, futures contracts and foreign currency transactions		Total distributions			Net asset value, end of period		Total return(1)(5)		Ratios to Average Net Assets(6)						Net assets, end of period (000 omitted)		Portfolio turnover rate(5)
																						Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)
Government Money Market Fund
2004(8)	$	1.00	$	—		$	—	$	—	$	—		$	—	$	—		$	1.00	0.28	%	0.20	%	0.17	%	1.18	%	$	64,212	—	%
2005		1.00		0.02			—		0.02		(0.02	)		—		(0.02	)		1.00	2.37		0.20		0.18		2.34			37,372	—
2006		1.00		0.04			—		0.04		(0.04	)		—		(0.04	)		1.00	4.42		0.20		0.17		4.34			65,616	—
2007		1.00		0.05			—		0.05		(0.05	)		—		(0.05	)		1.00	5.25		0.20		0.13		5.13			136,910	—
2008		1.00		0.03			—		0.03		(0.03	)		—		(0.03	)		1.00	3.45		0.20		0.10		3.33			275,136	—
2009(13)		1.00		0.01			—		0.01		(0.01	)		—		(0.01	)		1.00	0.62		0.23	(14)	0.07		1.21			460,020	—
Tax-Free Money Market Fund
2005(9)		1.00		—			—		—		—			—		—			1.00	0.39		0.20		0.06		0.78			24,211	—
2006		1.00		0.03			—		0.03		(0.03	)		—		(0.03	)		1.00	3.09		0.20		0.13		3.10			116,409	—
2007		1.00		0.04			—		0.04		(0.04	)		—		(0.04	)		1.00	3.59		0.20		0.13		3.53			243,842	—
2008		1.00		0.03			—		0.03		(0.03	)		—		(0.03	)		1.00	2.83		0.20		0.09		2.67			398,315	—
2009(13)		1.00		0.01			—		0.01		(0.01	)		—		(0.01	)		1.00	1.08		0.23	(14)	0.08		2.13			534,491	—
Prime Money Market Fund
2004		1.00		0.01	(4)		—		0.01		(0.01	)		—		(0.01	)		1.00	1.01		0.20		0.04		1.01			1,532,640	—
2005		1.00		0.02			—		0.02		(0.02	)		—		(0.02	)		1.00	2.47		0.20		0.04		2.45			1,550,128	—
2006		1.00		0.04			—		0.04		(0.04	)		—		(0.04	)		1.00	4.51		0.20		0.04		4.44			1,653,556	—
2007		1.00		0.05			—		0.05		(0.05	)		—		(0.05	)		1.00	5.33		0.20		0.02		5.20			2,080,429	—
2008		1.00		0.04			—		0.04		(0.04	)		—		(0.04	)		1.00	3.91		0.20		0.01		3.69			3,101,260	—
2009(13)		1.00		0.01			—		0.01		(0.01	)		—		(0.01	)		1.00	1.05		0.24	(14)	0.00	(7)	2.07			2,902,751	—

(1) Based on net asset value.

(2) This voluntary expense decrease is reflected in both the expense and net investment income (loss) ratios.

(3) Redemption fees consisted of per share amounts less than $0.01.

(4) Per share information is based on average shares outstanding.

(5) Not annualized for periods less than one year.

(6) Annualized for periods less than one year.

(7) Represents less than 0.005%.

(8) Reflects operations for the period from May 28, 2004 (commencement of operations) to August 31, 2004.

(9) Reflects operations for the period from June 29, 2005 (commencement of operations) to August 31, 2005.

(10) Reflects operations for the period from June 1, 2007 (commencement of operations) to August 31, 2007.

(11) Reflects operations for the period from February 1, 2008 (commencement of operations) to August 31, 2008.

(12) Reflects operations for the period from December 23, 2008 (commencement of operations) to February 28, 2009.

(13) For the six months ended February 28, 2009 (Unaudited).

(14) Participation fees for the Treasury’s Temporary Guarantee Program in the Government Money Market Fund, Tax-Free Money Market Fund and Prime Money Market Fund amounted to 0.03%, 0.03% and 0.04%, respectively.

(See Notes which are an integral part of the Financial Statements)

71

February 28, 2009 (Unaudited)

Notes to Financial Statements

1. Organization

Marshall Funds, Inc. (the “Corporation”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Corporation consists of seventeen diversified portfolios (individually referred to as the “Fund,” or collectively as the “Funds”), with multiple classes of shares as indicated in the accompanying table:

Portfolio Name	Advisor Class	Investor Class	Institutional Class	Investment Objective
Marshall Large-Cap Value Fund (“Large-Cap Value Fund”)	X	X	X	To provide capital appreciation and above-average dividend income.
Marshall Large-Cap Growth Fund (“Large-Cap Growth Fund”)	X	X	X	To provide capital appreciation.
Marshall Mid-Cap Value Fund (“Mid-Cap Value Fund”)	X	X	X	To provide capital appreciation.
Marshall Mid-Cap Growth Fund (“Mid-Cap Growth Fund”)	X	X	X	To provide capital appreciation.
Marshall Small-Cap Growth Fund (“Small-Cap Growth Fund”)	X	X	X	To provide capital appreciation.
Marshall International Stock Fund (“International Stock Fund”)	X	X	X	To provide capital appreciation.
Marshall Emerging Markets Equity Fund (“Emerging Markets Equity Fund”)	X*	X*	X*	To provide capital appreciation.
Marshall Short-Term Income Fund (“Short-Term Income Fund”)	X	X	X	To maximize total return consistent with current income.
Marshall Short-Intermediate Bond Fund (“Short-Intermediate Bond Fund”)	X	X	X	To maximize total return consistent with current income.
Marshall Intermediate Tax-Free Fund (“Intermediate Tax-Free Fund”)		X		To provide a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.
Marshall Government Income Fund (“Government Income Fund”)	X	X	X	To provide current income.
Marshall Corporate Income Fund (“Corporate Income Fund”)	X*	X*	X*	To maximize total return consistent with current income.
Marshall Aggregate Bond Fund (“Aggregate Bond Fund”)	X	X	X	To maximize total return consistent with current income.
Marshall Core Plus Bond Fund (“Core Plus Bond Fund”)		X*	X*	To maximize total return consistent with current income.
Marshall Government Money Market Fund (“Government Money Market Fund”)		X	X	To provide current income consistent with stability of principal.
Marshall Tax-Free Money Market Fund (“Tax-Free Money Market Fund”)		X	X	To provide current income that is exempt from federal income tax and is consistent with stability of principal.
Marshall Prime Money Market Fund (“Prime Money Market Fund”)	X	X	X	To provide current income consistent with stability of principal.

* Commenced operations on December 23, 2008.

2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.

Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.

Investment Valuations—Listed equity securities are valued each trading day at the last sale price or official closing price reported on a national securities exchange, including NASDAQ. Securities listed on a foreign exchange are valued each trading day at the last closing price on the principal exchange on which they are traded immediately prior to the time for determination of NAV or at fair value as discussed below. Equity securities without a reported trade, U.S. government

72

Marshall Funds

securities, listed corporate bonds, other fixed income and asset-backed securities with maturities of 60 days or more, unlisted securities and private placement securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Municipal and corporate bonds are valued by an independent pricing service, taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type of issue and any other factors or market data the pricing service deems relevant. Fixed income securities with remaining maturities of 60 days or less at the time of purchase are valued at amortized cost, which approximates fair value. Investments in other open-end registered investment companies are valued at net asset value. The money market funds use the amortized cost method to value portfolio securities in accordance with Rule 2a-7 under the Act.

Securities or other assets for which market valuations are not readily available, or are deemed to be inaccurate, are valued at fair value as determined in good faith using methods approved by the Board of Directors (the “Directors”). The Directors have established a Pricing Committee, which is responsible for determinations of fair value, subject to the supervision of the Directors. In determining fair value, the Pricing Committee takes into account all information available and any factors it deems appropriate. Consequently, the price of securities used by a Fund to calculate its NAV may differ from quoted or published prices for the same securities. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security is materially different than the value that could be realized upon the sale of that security and the differences may be material to the NAV of the respective Fund or the financial statements presented.

Securities held in the International Stock Fund and Emerging Markets Equity Fund may be listed on foreign exchanges that do not value their listed securities at the same time each Fund calculates its NAV. Most foreign markets close well before each Fund values its securities, generally 3:00 p.m. (Central Time). The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim.

The Pricing Committee may determine that a security needs to be fair valued if, among other things, it believes the value of the security might have been materially affected by events occurring after the close of the market in which the security was principally traded, but before the time for determination of the NAV (“a subsequent event”). A subsequent event might include a company-specific development (for example, announcement of a merger that is made after the close of the foreign market), a development that might affect an entire market or region (for example, weather related events) or a potentially global development (such as a terrorist attack that may be expected to have an effect on investor expectations worldwide). The Board of Directors have retained an independent fair value pricing service to assist in valuing foreign securities. The service utilizes statistical data based on historical performance of securities, markets and other data in developing factors used to estimate a fair value. As of February 28, 2009, 94.9% of the total long-term investments of the International Stock Fund and 54.5% of the total long-term investments of the Emerging Markets Equity Fund were fair valued.

In September 2006, the Financial Accounting Standards Board (FASB), issued Statement of Financial Accounting Standards No. 157, “Fair Valuation Measurements.” The Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. The Statement establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs), and (2) the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and is to be applied prospectively as of the beginning of the fiscal year in which this Statement is initially applied. The Funds adopted FASB 157 as of September 1, 2008.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices for active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Quoted prices for identical or similar assets in markets that are not active. Inputs that are derived principally from or corroborated by observable market data. An adjustment to any observable input that is significant to the fair value may render the measurement a Level 3 measurement.

Level 3—significant unobservable inputs, including the Fund’s own assumptions in determining the fair value of investments.

73

Notes to Financial Statements (Continued)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, Money Market holdings are valued using amortized cost under 2a-7 of the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of the holding, but since the value is not obtained from a quoted price in an active market, such holdings are reflected as Level 2. The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2009:

	Investments in Securities
Fund	Level 1			Level 2		Level 3		Total
Large-Cap Value Fund	$	149,601,324		$	4,061,187	$	—	$	153,662,511
Large-Cap Growth Fund		119,526,454			3,679,956		—		123,206,410
Mid-Cap Value Fund		147,304,193			5,521,569		—		152,825,762
Mid-Cap Growth Fund		136,671,165			3,039,446		—		139,710,611
Small-Cap Growth Fund		161,851,636			4,207,296		—		166,058,932
International Stock Fund		5,081,724			98,541,448		—		103,623,172
Emerging Markets Equity Fund		3,671,726			4,767,080		—		8,438,806
Short-Term Income Fund		6,270,553			73,910,450		—		80,181,003
Short-Intermediate Bond Fund		—			192,625,888		—		192,625,888
Intermediate Tax-Free Fund		—			100,870,132		—		100,870,132
Government Income Fund		—			667,598,717		—		667,598,717
Corporate Income Fund		—			12,713,869		—		12,713,869
Aggregate Bond Fund		—			281,783,977		—		281,783,977
Core Plus Bond Fund		—			21,688,696		—		21,688,696
Government Money Market Fund		—			1,146,111,734		—		1,146,111,734
Tax-Free Money Market Fund		—			943,149,336		—		943,149,336
Prime Money Market Fund		—			5,521,954,734		—		5,521,954,734
	Unrealized Appreciation/Depreciation On Other Financial Instruments*
Fund	Level 1			Level 2		Level 3		Total
Large-Cap Value Fund		$(279,897	)		$—	$	—		$(279,897	)
Short-Term Income Fund		38,425			—		—		38,425

* Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the investment.

Repurchase Agreements—The Funds’ policy requires the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank’s vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement’s collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement, including accrued interest.

The Funds only will enter into repurchase agreements with banks and other recognized financial institutions, such as broker-dealers, which are deemed by the Funds’ adviser (or sub-advisers) to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Directors. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities.

Investment Income, Expenses and Distributions—Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair market value.

The Funds (except Intermediate Tax-Free Fund) offer multiple classes of shares which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Funds. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in class-specific expenses. Income, non-class specific expenses and realized and unrealized gains and losses are allocated daily to each class of shares based on the value of total shares outstanding of each class, without distinction between share classes. Expenses attributable to a particular class of shares, such as distribution fees and shareholder servicing fees are allocated directly to that class.

Premium and Discount Amortization/Paydown Gains and Losses—Premiums and discounts on fixed income securities are generally amortized/accreted for tax and financial statement purposes. Gains and losses realized on principal payments of mortgage-backed securities (paydown gains and losses) are classified as part of net investment income.

Federal Income Taxes—The policies and procedures of the Funds require compliance with Subchapter M of the Internal Revenue Code (the “Code”) and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for federal tax are necessary.

74

Marshall Funds

Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

In-Kind Redemptions—In certain circumstances, a Fund may distribute portfolio securities rather than cash as payment for redemption of Fund shares (an “in-kind redemption”). For financial reporting purposes, the Fund recognizes a gain on the in-kind redemptions to the extent the value of the distributed securities on the date of redemption exceeds the cost of those securities; the Fund recognizes a loss if cost exceeds value. Gains and losses realized on the in-kind redemptions are not recognized for tax purposes and are reclassified from undistributed realized gain or loss to paid-in capital.

When-Issued and Delayed Delivery Transactions—The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the commitment to purchase securities. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Futures Contracts—Certain Funds may purchase futures contracts to manage cash flows, enhance yield, and to potentially reduce transaction costs. Upon entering into a futures contract with a broker, the Fund is required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. Daily, the Fund receives from, or pays to, the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with changes in the value of the underlying securities.

At February 28, 2009, the following Fund had outstanding futures contracts as set forth below:

Fund	Expiration Date	Contracts	Description	Position	Unrealized Appreciation
Short-Term Income Fund	June 2009	155	U.S. 5 Year Note	Long	$	38,425

Options Contracts—Certain Funds may write covered call and put options on futures, swaps, securities, or currencies a Fund owns, or in which it may invest. Writing put options tends to increase a Fund’s exposure to the underlying instrument. Writing call options tends to decrease a Fund’s exposure to the underlying instrument. When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are reflected as written options outstanding in the Statements of Assets and Liabilities. Payments received, or made, from writing options with premiums to be determined on a future date are reflected as such on the Statements of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying future, swap, security or currency transaction to determine the realized gain or loss. A Fund, as a writer of an option, has no control over whether the underlying future, swap, security, or currency may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the future, swap, security, or currency underlying the written option. The risk exists that a Fund may not be able to enter into a closing transaction because of an illiquid market.

Certain Funds also may purchase put and call options. Purchasing call options tends to increase a Fund’s exposure to the underlying instrument. Purchasing put options tends to decrease a Fund’s exposure to the underlying instrument. A Fund pays a premium, which is included in a Fund’s Statement of Assets and Liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying future, swap, security, or currency transaction to determine the realized gain or loss.

For the period ended February 28, 2009, the Large-Cap Value Fund had $459,051 in realized losses on all option contracts and the Large-Cap Growth Fund had $10,620 in realized gains on all option contracts.

The following is a summary of the Large-Cap Value Fund’s written option activity:

Contracts	Number of Contracts		Premium
Outstanding @ 8/31/2008	740		$	116,059
Options written	19,788			2,743,754
Options expired	(7,100	)		(851,282	)
Options exercised	(3,477	)		(652,529	)
Options closed	(2,250	)		(458,597	)
Outstanding @ 2/28/2009	7,701		$	897,405

75

Notes to Financial Statements (Continued)

The following is a summary of the Large-Cap Growth Fund’s written option activity:

Contracts	Number of Contracts		Premium
Outstanding @ 8/31/2008	—		$	—
Options written	1,000			114,349
Options expired	—			—
Options exercised	—			—
Options closed	(1,000	)		(114,349	)
Outstanding @ 2/28/2009	—		$	—

At February 28, 2009, the Large-Cap Value Fund had the following outstanding written options:

Contracts	Type	Expiration Date	Exercise Price		Number of Contracts	Market Value		Unrealized Appreciation (Depreciation)
Bank of New York Mellon Corp.	Call	June 2009	$	25.00	400	$	122,000	$	(47,201	)
Financial Select Sector SPDR	Call	June 2009		12.00	1855		35,245		72,344
Gilead Sciences, Inc.	Call	May 2009		55.00	496		26,040		131,191
International Business Machines Corp.	Call	March 2009		100.00	70		5,075		2,065
International Business Machines Corp.	Call	July 2009		105.00	186		71,610		(8,406	)
Morgan Stanley	Call	April 2009		25.00	585		70,200		(4,680	)
U.S. Bancorp	Call	March 2009		17.50	834		33,360		24,186
Bank of New York Mellon Corp.	Put	June 2009		10.00	400		27,000		33,800
Financial Select Sector SPDR	Put	June 2009		6.00	1855		123,358		12,057
International Business Machines Corp.	Put	July 2009		80.00	186		82,770		32,015
U.S. Bancorp	Put	March 2009		10.00	834		20,850		32,526
Total					7,701			$	279,897

Foreign Exchange Contracts—Certain Funds may enter into foreign currency exchange contracts as a way of managing foreign exchange rate risk. Certain Funds may enter into these contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge or cross hedge against either specific transactions or portfolio positions. The objective of certain Funds’ foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of these Funds’ foreign currency denominated securities will decline in value due to changes in foreign currency exchange rates. All foreign currency exchange contracts are “marked-to-market” daily at the applicable translation rates resulting in unrealized gains or losses. Realized gains or losses are recorded at the time the foreign currency exchange contract is offset by entering into a closing transaction or by the delivery or receipt of the currency. Risk may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

Foreign Currency Translation—The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at each reporting period, resulting from changes in the exchange rate.

Restricted Securities—Restricted securities are securities that may be resold only upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer’s expense either upon demand by the Funds or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Directors. The restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, the fair value as determined in good faith using methods approved by the Directors. The money market funds’ restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.

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Marshall Funds

Additional information on each illiquid restricted security held by the Funds at February 28, 2009 is as follows:

Fund	Security	Acquisition Date	Acquisition Cost		Value
Tax-Free Money Market Fund	Term Tender Custodial Receipts	1/23/2009	$	20,000,000	$	20,000,000
Prime Money Market Fund	Metropolitan Life Insurance Co.	5/3/2004		65,000,000		65,000,000
Prime Money Market Fund	Metropolitan Life Insurance Co.	1/30/2004		50,000,000		50,000,000

Redemption Fees—The Funds (other than the Government Money Market Fund, Tax-Free Money Market Fund, and Prime Money Market Fund) impose a 2.00% redemption fee to shareholders who redeem shares held for 30 days or less. All redemption fees are recorded by the Funds as paid-in-capital.

Securities Lending—Certain Funds participate in a securities lending program, providing for the lending of corporate bonds, equity and government securities to qualified brokers. The Funds receive cash as collateral in return for the securities and record a corresponding payable for collateral due to the respective broker. The amount of cash collateral received is maintained at a minimum level of 100% of the prior day’s market value on securities loaned. Collateral is reinvested in short-term securities including overnight repurchase agreements, commercial paper, master notes, floating rate corporate notes (with at least quarterly reset rates) and money market funds, the valuation of which is discussed in “Investment Valuations” in Note 1 of the Notes to the Financial Statements. When a Fund lends its portfolio securities, it is subject to the risk that it may not be able to get them back from the borrower on a timely basis, in which case the Fund may lose certain investment opportunities. A Fund is also subject to the risks associated with the investments of cash collateral received from the borrower. On May 18, 2000, the Securities and Exchange Commission issued an order to the Marshall Funds that exempts certain securities lending activities from prohibitions under the Act. Under the terms of the exemptive order, (i) the Funds may pay a portion of net revenue to Marshall & Ilsley Trust Company N.A. (“M&I Trust”) for its services as securities lending agent, and (ii) cash collateral received for a loan of one Fund’s securities may be invested jointly with collateral received for loans of other Funds’ securities.

Cash collateral received as part of the securities lending program was jointly pooled and invested in the following securities as of February 28, 2009 (1):

Description			Value
Metlife Insurance FA, 0.663%, 5/28/2009			$	20,000,000
BlackRock Liquidity TempCash Money Market Fund				294,567,652
BlackRock Liquidity TempFund Money Market Fund				307,720,437
Total			$	622,288,089
Fund	Value of Securities Loaned		Payable on Collateral Due to Brokers
Large-Cap Value Fund	$	60,191,368	$	62,272,135
Large-Cap Growth Fund		40,437,240		41,835,123
Mid-Cap Value Fund		57,906,902		59,908,697
Mid-Cap Growth Fund		54,243,808		56,118,972
Small-Cap Growth Fund		63,303,453		65,491,802
International Stock Fund		25,350,409		26,226,752
Short-Term Income Fund		7,273,708		7,525,154
Short-Intermediate Bond Fund		1,873,101		1,937,853
Government Income Fund		234,115,421		242,208,601
Aggregate Bond Fund		56,799,488		58,763,000
Total	$	601,494,898	$	622,288,089

(1) The collateral pool is managed by the Fund Manager of the Short-Term Income, Government Money Market and Prime Money Market Funds. Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of February 28, 2009.

Commitments and Contingencies—In the normal course of business, the Corporation enters into contracts that provide general indemnifications to other parties. The Corporation’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Corporation that have not yet occurred. However, the Corporation has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Treasury’s Temporary Guarantee Program—On October 2, 2008, the Government Money Market Fund, Tax-Free Money Market Fund, and Prime Money Market Fund filed a Guarantee Agreement with the United States Department of the Treasury (the “Treasury”) and paid a fee to participate in the Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”). The Board of Directors determined that each of these Fund’s participation in the Program was in the best interests of the Funds and their respective shareholders. Under the Program, the Treasury will guarantee the share price of shares of a fund held by shareholders as of September 19, 2008 at $1.00 per share if the fund’s net asset value per share falls below $0.995

77

Notes to Financial Statements (continued)

(a “Guarantee Event”) during the coverage period and the fund is required to liquidate. The Program’s guarantee is for the lesser of: (a) the number of fund shares owned by the shareholder at the close of business on September 19, 2008; or (b) the number of fund shares owned by the shareholder on the date of a Guarantee Event. Each Fund paid a fee equivalent to 0.01% of each Fund’s net assets as of September 19, 2008 to participate in the Program through December 18,2008. The Treasury first extended the Program through April 30, 2009, for which each Fund paid an additional fee equivalent to 0.015% of each Fund’s net assets as of September 19, 2008. The Treasury then extended the Program through September 18, 2009, for which each Fund paid an additional fee equivalent to 0.015% of each Fund’s net assets as of September 19, 2008. If the Treasury elects to extend the guarantee period beyond September 18, 2009 and the Funds continue to participate, additional fees may be paid by the Funds.

Other—Investment transactions are accounted for on a trade date basis. Net realized gains and losses on securities are computed on the basis of specific security lot identification.

3. Capital Stock

The Articles of Incorporation permit the Directors to issue an indefinite number of full and fractional shares of common stock, par value $0.0001 per share. Transactions in capital stock were as follows:

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
LARGE-CAP VALUE FUND—INVESTOR CLASS
Shares sold	1,078,951		$	9,938,204		2,173,540		$	28,534,328
Shares issued to shareholders in payment of distributions declared	87,193			838,896		1,176,306			16,308,464
Shares redeemed	(1,499,106	)		(14,498,503	)	(17,750,919	)		(229,761,591	)
Net change resulting from Investor Class Share transactions	(332,962	)	$	(3,721,403	)	(14,401,073	)	$	(184,918,799	)
LARGE-CAP VALUE FUND—ADVISOR CLASS
Shares sold	58,757		$	522,205		50,711		$	683,442
Shares issued to shareholders in payment of distributions declared	8,156			78,666		47,201			652,329
Shares redeemed	(109,687	)		(990,513	)	(168,235	)		(2,225,189	)
Net change resulting from Advisor Class Share transactions	(42,774	)	$	(389,642	)	(70,323	)	$	(889,418	)
LARGE-CAP VALUE FUND—INSTITUTIONAL CLASS
Shares sold	1,385,146		$	13,206,312		14,772,400		$	188,961,371
Shares issued to shareholders in payment of distributions declared	84,732			817,775		24,243			297,018
Shares redeemed	(2,564,111	)		(23,823,396	)	(2,160,083	)		(27,014,487	)
Net change resulting from Institutional Class Share transactions	(1,094,233	)	$	(9,799,309	)	12,636,560		$	162,243,902
Net change resulting from Fund Shares transactions	(1,469,969	)	$	(13,910,354	)	(1,834,836	)	$	(23,564,315	)
LARGE-CAP GROWTH FUND—INVESTOR CLASS
Shares sold	441,286		$	3,804,869		2,364,570		$	29,668,689
Shares issued to shareholders in payment of distributions declared	6,935			56,034		1,449,855			19,631,901
Shares redeemed	(1,006,453	)		(8,736,031	)	(15,495,862	)		(192,311,600	)
Net change resulting from Investor Class Share transactions	(558,232	)	$	(4,875,128	)	(11,681,437	)	$	(143,011,010	)

78

Marshall Funds

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
LARGE-CAP GROWTH FUND—ADVISOR CLASS
Shares sold	37,877		$	306,063		53,793		$	695,488
Shares issued to shareholders in payment of distributions declared	738			5,965		55,129			746,491
Shares redeemed	(105,043	)		(878,563	)	(125,490	)		(1,592,320	)
Net change resulting from Advisor Class Share transactions	(66,428	)	$	(566,535	)	(16,568	)	$	(150,341	)
LARGE-CAP GROWTH FUND—INSTITUTIONAL CLASS
Shares sold	844,115		$	6,947,024		13,729,671		$	169,749,074
Shares issued to shareholders in payment of distributions declared	17,934			145,088		—			—
Shares redeemed	(2,638,930	)		(22,244,687	)	(1,065,443	)		(12,848,073	)
Net change resulting from Institutional Class Share transactions	(1,776,881	)	$	(15,152,575	)	12,664,228		$	156,901,001
Net change resulting from Fund Shares transactions	(2,401,541	)	$	(20,594,238	)	966,223		$	13,739,650
MID-CAP VALUE FUND—INVESTOR CLASS
Shares sold	1,834,796		$	15,087,369		2,406,601		$	32,041,674
Shares issued to shareholders in payment of distributions declared	965,089			7,276,768		4,632,735			61,903,018
Shares redeemed	(3,309,131	)		(28,098,624	)	(29,046,366	)		(379,678,554	)
Shares redeemed—in-kind	—			—		(906,607	)		(10,743,296	)
Net change resulting from Investor Class Share transactions	(509,246	)	$	(5,734,487	)	(22,913,637	)	$	(296,477,158	)
MID-CAP VALUE FUND—ADVISOR CLASS
Shares sold	25,642		$	211,326		76,081		$	1,022,062
Shares issued to shareholders in payment of distributions declared	49,848			375,853		108,300			1,447,171
Shares redeemed	(125,026	)		(1,027,845	)	(255,265	)		(3,480,290	)
Net change resulting from Advisor Class Share transactions	(49,536	)	$	(440,666	)	(70,884	)	$	(1,011,057	)
MID-CAP VALUE FUND—INSTITUTIONAL CLASS
Shares sold	3,025,962		$	25,336,306		10,856,200		$	135,180,787
Shares issued to shareholders in payment of distributions declared	718,692			5,411,754		—			—
Shares redeemed	(1,929,395	)		(15,348,291	)	(2,719,382	)		(33,605,250	)
Net change resulting from Institutional Class Share transactions	1,815,259		$	15,399,769		8,136,818		$	101,575,537
Net change resulting from Fund Shares transactions	1,256,477		$	9,224,616		(14,847,703	)	$	(195,912,678	)

79

Notes to Financial Statements (continued)

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
MID-CAP GROWTH FUND—INVESTOR CLASS
Shares sold	402,752		$	4,861,955		3,341,552		$	61,014,123
Shares issued to shareholders in payment of distributions declared	223,029			2,346,269		—			—
Shares redeemed	(760,882	)		(9,432,294	)	(11,904,299	)		(218,025,972	)
Net change resulting from Investor Class Share transactions	(135,101	)	$	(2,224,070	)	(8,562,747	)	$	(157,011,849	)
MID-CAP GROWTH FUND—ADVISOR CLASS
Shares sold	9,871		$	114,466		45,023		$	830,102
Shares issued to shareholders in payment of distributions declared	15,192			159,815		—			—
Shares redeemed	(36,310	)		(406,525	)	(45,656	)		(824,203	)
Net change resulting from Advisor Class Share transactions	(11,247	)	$	(132,244	)	(633	)	$	5,899
MID-CAP GROWTH FUND—INSTITUTIONAL CLASS
Shares sold	1,020,402		$	12,484,320		10,592,441		$	194,634,656
Shares issued to shareholders in payment of distributions declared	547,297			5,773,985		—			—
Shares redeemed	(1,327,587	)		(14,932,065	)	(582,417	)		(10,623,478	)
Net change resulting from Institutional Class Share transactions	240,112		$	3,326,240		10,010,024		$	184,011,178
Net change resulting from Fund Shares transactions	93,764		$	969,926		1,446,644		$	27,005,228
SMALL-CAP GROWTH FUND—INVESTOR CLASS
Shares sold	1,286,490		$	12,735,482		6,112,151		$	95,909,213
Shares issued to shareholders in payment of distributions declared	—			—		2,739,815			45,371,334
Shares redeemed	(2,454,535	)		(25,979,524	)	(12,103,559	)		(178,958,130	)
Net change resulting from Investor Class Share transactions	(1,168,045	)	$	(13,244,042	)	(3,251,593	)	$	(37,677,583	)
SMALL-CAP GROWTH FUND—ADVISOR CLASS
Shares sold	158,226		$	1,621,090		794,224		$	12,648,359
Shares issued to shareholders in payment of distributions declared	—			—		82,746			1,370,278
Shares redeemed	(231,485	)		(2,293,900	)	(210,766	)		(3,193,719	)
Net change resulting from Advisor Class Share transactions	(73,259	)	$	(672,810	)	666,204		$	10,824,918

80

Marshall Funds

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
SMALL-CAP GROWTH FUND—INSTITUTIONAL CLASS
Shares sold	1,505,214		$	16,612,666		10,323,587		$	150,513,293
Shares issued to shareholders in payment of distributions declared	—			—		—			—
Shares redeemed	(1,361,910	)		(12,845,389	)	(854,870	)		(12,736,082	)
Net change resulting from Institutional Class Share transactions	143,304		$	3,767,277		9,468,717		$	137,777,211
Net change resulting from Fund Share transactions	(1,098,000	)	$	(10,149,575	)	6,883,328		$	110,924,546
INTERNATIONAL STOCK FUND—INVESTOR CLASS
Shares sold	449,345		$	3,695,322		1,424,260		$	21,832,081
Shares issued to shareholders in payment of distributions declared	399,150			2,929,758		1,964,939			29,945,667
Shares redeemed	(3,313,283	)		(28,927,784	)	(11,627,476	)		(160,351,964	)
Net change resulting from Investor Class Share transactions	(2,464,788	)	$	(22,302,704	)	(8,238,277	)	$	(108,574,216	)
INTERNATIONAL STOCK FUND—ADVISOR CLASS
Shares sold	10,547		$	77,928		47,647		$	750,272
Shares issued to shareholders in payment of distributions declared	31,205			229,046		60,409			920,629
Shares redeemed	(73,327	)		(567,949	)	(130,325	)		(1,889,566	)
Net change resulting from Advisor Class Share transactions	(31,575	)	$	(260,975	)	(22,269	)	$	(218,665	)
INTERNATIONAL STOCK FUND—INSTITUTIONAL CLASS
Shares sold	1,214,749		$	9,533,738		9,040,771		$	125,790,950
Shares issued to shareholders in payment of distributions declared	1,111,926			8,261,610		2,065,052			31,946,356
Shares redeemed	(9,471,474	)		(81,413,815	)	(5,270,638	)		(76,267,023	)
Net change resulting from Institutional Class Share transactions	(7,144,799	)	$	(63,618,467	)	5,835,185		$	81,470,283
Net change resulting from Fund Share transactions	(9,641,162	)	$	(86,182,146	)	(2,425,361	)	$	(27,322,598	)
EMERGING MARKETS EQUITY FUND—INVESTOR CLASS(1)
Shares sold	22,076		$	214,925		—		$	—
Shares issued to shareholders in payment of distributions declared	—			1		—			—
Shares redeemed	(9,872	)		(96,841	)	—			—
Net change resulting from Investor Class Share transactions	12,204		$	118,085		—		$	—

81

Notes to Financial Statements (continued)

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
EMERGING MARKETS EQUITY FUND—ADVISOR CLASS(1)
Shares sold	1,727		$	17,110		—		$	—
Shares issued to shareholders in payment of distributions declared	—			1		—			—
Shares redeemed	—			—		—			—
Net change resulting from Advisor Class Share transactions	1,727		$	17,111		—		$	—
EMERGING MARKETS EQUITY FUND—INSTITUTIONAL CLASS(1)
Shares sold	959,052		$	9,559,342		—		$	—
Shares issued to shareholders in payment of distributions declared	779			7,843		—			—
Shares redeemed	(1,336	)		(13,000	)	—			—
Net change resulting from Institutional Class Share transactions	958,495		$	9,554,185		—		$	—
Net change resulting from Fund Share transactions	972,426		$	9,689,381		—		$	—
SHORT-TERM INCOME FUND—INVESTOR CLASS
Shares sold	346,057		$	2,956,910		1,770,437		$	16,109,221
Shares issued to shareholders in payment of distributions declared	36,655			310,353		104,355			946,460
Shares redeemed	(1,476,507	)		(12,729,639	)	(7,100,777	)		(64,964,817	)
Net change resulting from Investor Class Share transactions	(1,093,795	)	$	(9,462,376	)	(5,225,985	)	$	(47,909,136	)
SHORT-TERM INCOME FUND—ADVISOR CLASS
Shares sold	15,109		$	129,927		23,560		$	213,300
Shares issued to shareholders in payment of distributions declared	4,640			39,303		10,387			94,149
Shares redeemed	(39,267	)		(335,310	)	(84,631	)		(770,183	)
Net change resulting from Advisor Class Share transactions	(19,518	)	$	(166,080	)	(50,684	)	$	(462,734	)
SHORT-TERM INCOME FUND—INSTITUTIONAL CLASS
Shares sold	518,963		$	4,559,346		5,716,620		$	52,428,219
Shares issued to shareholders in payment of distributions declared	112,452			952,249		211,682			1,918,357
Shares redeemed	(1,572,239	)		(13,312,392	)	(2,325,565	)		(21,030,840	)
Net change resulting from Institutional Class Share transactions	(940,824	)	$	(7,800,797	)	3,602,737		$	33,315,736
Net change resulting from Fund Share transactions	(2,054,137	)	$	(17,429,253	)	(1,673,932	)	$	(15,056,134	)

82

Marshall Funds

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
SHORT-INTERMEDIATE BOND FUND—INVESTOR CLASS
Shares sold	422,540		$	3,356,498		2,289,108		$	21,037,739
Shares issued to shareholders in payment of distributions declared	219,639			1,679,853		479,779			4,388,881
Shares redeemed	(4,169,625	)		(33,215,537	)	(31,315,495	)		(288,778,684	)
Net change resulting from Investor Class Share transactions	(3,527,446	)	$	(28,179,186	)	(28,546,608	)	$	(263,352,064	)
SHORT-INTERMEDIATE BOND FUND—ADVISOR CLASS
Shares sold	16,777		$	128,957		55,273		$	503,080
Shares issued to shareholders in payment of distributions declared	15,827			120,667		25,867			236,206
Shares redeemed	(76,878	)		(604,686	)	(140,295	)		(1,285,316	)
Net change resulting from Advisor Class Share transactions	(44,274	)	$	(355,062	)	(59,155	)	$	(546,030	)
SHORT-INTERMEDIATE BOND FUND—INSTITUTIONAL CLASS
Shares sold	1,464,845		$	12,239,924		23,290,173		$	215,300,763
Shares issued to shareholders in payment of distributions declared	292,835			2,237,233		827,877			7,575,996
Shares redeemed	(9,598,939	)		(73,954,997	)	(21,450,451	)		(195,321,310	)
Net change resulting from Institutional Class Share transactions	(7,841,259	)	$	(59,477,840	)	2,667,599		$	27,555,449
Net change resulting from Fund Shares transactions	(11,412,979	)	$	(88,012,088	)	(25,938,164	)	$	(236,342,645	)
INTERMEDIATE TAX-FREE FUND—INVESTOR CLASS
Shares sold	3,088,306		$	30,170,122		2,683,284		$	27,107,048
Shares issued to shareholders in payment of distributions declared	144,337			1,375,823		65,285			658,544
Shares redeemed	(2,062,834	)		(19,946,647	)	(2,217,778	)		(22,391,087	)
Net change resulting from Investor Class Share transactions	1,169,809		$	11,599,298		530,791		$	5,374,505
GOVERNMENT INCOME FUND—INVESTOR CLASS
Shares sold	2,283,452		$	20,827,417		10,407,649		$	99,132,338
Shares issued to shareholders in payment of distributions declared	1,803,359			16,060,288		1,753,690			16,690,375
Shares redeemed	(9,677,288	)		(88,392,987	)	(31,282,247	)		(299,568,079	)
Net change resulting from Investor Class Share transactions	(5,590,477	)	$	(51,505,282	)	(19,120,908	)	$	(183,745,366	)

83

Notes to Financial Statements (continued)

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
GOVERNMENT INCOME FUND—ADVISOR CLASS
Shares sold	66,732		$	600,738		74,068		$	701,005
Shares issued to shareholders in payment of distributions declared	23,981			213,490		20,780			197,678
Shares redeemed	(108,835	)		(980,328	)	(190,616	)		(1,811,008	)
Net change resulting from Advisor Class Share transactions	(18,122	)	$	(166,100	)	(95,768	)	$	(912,325	)
GOVERNMENT INCOME FUND—INSTITUTIONAL CLASS
Shares sold	1,558,302		$	14,376,023		20,507,117		$	196,977,254
Shares issued to shareholders in payment of distributions declared	982,537			8,734,833		767,556			7,302,927
Shares redeemed	(6,672,554	)		(60,316,990	)	(9,663,991	)		(91,863,427	)
Net change resulting from Institutional Class Share transactions	(4,131,715	)	$	(37,206,134	)	11,610,682		$	112,416,754
Net change resulting from Fund Share transactions	(9,740,314	)	$	(88,877,516	)	(7,605,994	)	$	(72,240,937	)
CORPORATE INCOME FUND—INVESTOR CLASS(1)
Shares sold	3,733		$	37,764		—		$	—
Shares issued to shareholders in payment of distributions declared	6			59		—			—
Shares redeemed	—			—		—			—
Net change resulting from Investor Class Share transactions	3,739		$	37,823		—		$	—
CORPORATE INCOME FUND—ADVISOR CLASS(1)
Shares sold	8,967		$	90,779		—		$	—
Shares issued to shareholders in payment of distributions declared	17			171		—			—
Shares redeemed	—			—		—			—
Net change resulting from Advisor Class Share transactions	8,984		$	90,950		—		$	—
CORPORATE INCOME FUND—INSTITUTIONAL CLASS(1)
Shares sold	1,238,793		$	12,403,810		—		$	—
Shares issued to shareholders in payment of distributions declared	6,974			70,006		—			—
Shares redeemed	—			—		—			—
Net change resulting from Institutional Class Share transactions	1,245,767		$	12,473,816		—		$	—
Net change resulting from Fund Share transactions	1,258,490		$	12,602,589		—		$	—

84

Marshall Funds

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
AGGREGATE BOND FUND—INVESTOR CLASS
Shares sold	1,047,803		$	9,641,081		5,551,562		$	56,495,473
Shares issued to shareholders in payment of distributions declared	443,458			3,943,330		330,361			3,362,590
Shares redeemed	(2,021,356	)		(18,594,890	)	(3,791,128	)		(38,717,203	)
Net change resulting from Investor Class Share transactions	(530,095	)	$	(5,010,479	)	2,090,795		$	21,140,860
AGGREGATE BOND FUND—ADVISOR CLASS
Shares sold	18,076		$	161,850		34,475		$	350,495
Shares issued to shareholders in payment of distributions declared	2,251			19,985		809			8,194
Shares redeemed	(10,353	)		(93,686	)	(1,473	)		(14,930	)
Net change resulting from Advisor Class Share transactions	9,974		$	88,149		33,811		$	343,759
AGGREGATE BOND FUND—INSTITUTIONAL CLASS
Shares sold	1,133,573		$	10,505,028		9,300,308		$	94,497,242
Shares issued to shareholders in payment of distributions declared	1,084,697			9,650,244		879,272			8,946,823
Shares redeemed	(7,189,701	)		(65,091,875	)	(2,199,617	)		(22,192,058	)
Net change resulting from Institutional Class Share transactions	(4,971,431	)	$	(44,936,603	)	7,979,963		$	81,252,007
Net change resulting from Fund Share transactions	(5,491,552	)	$	(49,858,933	)	10,104,569		$	102,736,626
CORE PLUS BOND FUND—INVESTOR CLASS(1)
Shares sold	198		$	2,000		—		$	—
Shares issued to shareholders in payment of distributions declared	1			5		—			—
Shares redeemed	—			—		—			—
Net change resulting from Investor Class Share transactions	199		$	2,005		—		$	—
CORE PLUS BOND FUND—INSTITUTIONAL CLASS(1)
Shares sold	2,155,163		$	21,555,832		—		$	—
Shares issued to shareholders in payment of distributions declared	10,902			109,312		—			—
Shares redeemed	(12,486	)		(125,700	)	—			—
Net change resulting from Institutional Class Share transactions	2,153,579		$	21,539,444		—		$	—
Net change resulting from Fund Share transactions	2,153,778		$	21,541,449		—		$	—

85

Notes to Financial Statements (continued)

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
GOVERNMENT MONEY MARKET FUND—INVESTOR CLASS
Shares sold	1,521,893,218		$	1,521,893,218		2,408,730,530		$	2,408,730,530
Shares issued to shareholders in payment of distributions declared	1,522,769			1,522,769		5,537,705			5,537,705
Shares redeemed	(1,146,540,248	)		(1,146,540,248	)	(2,304,579,319	)		(2,304,579,319	)
Net change resulting from Investor Class Share transactions	376,875,739		$	376,875,739		109,688,916		$	109,688,916
GOVERNMENT MONEY MARKET FUND—INSTITUTIONAL CLASS
Shares sold	1,248,375,306		$	1,248,375,306		1,493,684,161		$	1,493,684,161
Shares issued to shareholders in payment of distributions declared	938,007			938,007		2,887,961			2,887,961
Shares redeemed	(1,064,428,697	)		(1,064,428,697	)	(1,358,347,606	)		(1,358,347,606	)
Net change resulting from Institutional Class Share transactions	184,884,616		$	184,884,616		138,224,516		$	138,224,516
Net change resulting from Fund Share transactions	561,760,355		$	561,760,355		247,913,432		$	247,913,432
TAX-FREE MONEY MARKET FUND—INVESTOR CLASS
Shares sold	456,075,566		$	456,075,566		974,480,530		$	974,480,530
Shares issued to shareholders in payment of distributions declared	2,227,912			2,227,912		2,945,474			2,945,474
Shares redeemed	(498,801,274	)		(498,801,274	)	(861,640,098	)		(861,640,098	)
Net change resulting from Investor Class Share transactions	(40,497,796	)	$	(40,497,796	)	115,785,906		$	115,785,906
TAX-FREE MONEY MARKET FUND—INSTITUTIONAL CLASS
Shares sold	573,497,478		$	573,497,478		1,056,303,630		$	1,056,303,630
Shares issued to shareholders in payment of distributions declared	23,362			23,362		34,812			34,812
Shares redeemed	(437,341,015	)		(437,341,015	)	(901,878,909	)		(901,878,909	)
Net change resulting from Institutional Class Share transactions	136,179,825		$	136,179,825		154,459,533		$	154,459,533
Net change resulting from Fund Shares transactions	95,682,029		$	95,682,029		270,245,439		$	270,245,439
PRIME MONEY MARKET FUND—INVESTOR CLASS
Shares sold	2,308,744,485		$	2,308,744,485		5,335,049,845		$	5,335,049,855
Shares issued to shareholders in payment of distributions declared	5,482,986			5,482,986		21,999,417			21,999,417
Shares redeemed	(2,437,851,167	)		(2,437,851,167	)	(5,586,290,291	)		(5,586,290,291	)
Net change resulting from Investor Class Share transactions	(123,623,696	)	$	(123,623,696	)	(229,241,029	)	$	(229,241,019	)

86

Marshall Funds

	Period Ended February 28, 2009					Year Ended August 31, 2008
	Shares		Amount			Shares		Amount
PRIME MONEY MARKET FUND—ADVISOR CLASS
Shares sold	89,917,296		$	89,917,296		181,468,775		$	181,468,775
Shares issued to shareholders in payment of distributions declared	1,055,989			1,055,989		4,486,112			4,486,112
Shares redeemed	(103,267,590	)		(103,267,590	)	(160,670,541	)		(160,670,541	)
Net change resulting from Advisor Class Share transactions	(12,294,305	)	$	(12,294,305	)	25,284,346		$	25,284,346
PRIME MONEY MARKET FUND—INSTITUTIONAL CLASS
Shares sold	4,845,100,516		$	4,845,100,516		9,956,882,803		$	9,956,882,803
Shares issued to shareholders in payment of distributions declared	5,348,642			5,348,642		23,546,692			23,546,692
Shares redeemed	(5,048,965,533	)		(5,048,965,533	)	(8,959,620,775	)		(8,959,620,775	)
Net change resulting from Institutional Class Share transactions	(198,516,375	)	$	(198,516,375	)	1,020,808,720		$	1,020,808,720
Net change resulting from Fund Shares transactions	(334,434,376	)	$	(334,434,376	)	816,852,037		$	816,852,047

(1) Reflects activity for the period from December 23, 2008 (commencement of operations) to February 28, 2009.

87

Notes to Financial Statements (continued)

4. Federal Tax Information

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due in part to differing treatments for net operating loss, foreign currency transactions, paydown gain or loss, market discount accretion, premium amortization and expiring capital loss carryforwards.

To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts, on the Statement of Assets and Liabilities, based on their Federal tax basis treatment; temporary differences do not require reclassification and had no effect on the net asset value of the Funds.

Effective February 29, 2008, the Funds adopted Financial Accounting Standards Board Interpretation No. 48 ‘‘Accounting for Uncertainty in Income Taxes’’ (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is ‘‘more-likely-than-not,’’ (i.e., greater than 50 percent) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold may result in a tax benefit or expense in the current year.

FIN 48 requires management of the Funds to analyze all open tax years, as defined by the statutes of limitations, for all major jurisdictions, which includes federal and certain states. Open tax years are those that are open for exam by taxing authorities (i.e., the last four tax year-ends and the interim tax period since then). The Funds have no examinations in progress. For all open tax years and all major taxing jurisdictions through the end of the reporting period, management of the Funds reviewed all tax positions taken or expected to be taken in the preparation of the Funds’ tax returns and concluded the adoption of FIN 48 resulted in no effect on the Funds’ reported net assets or results of operations as of and during the period ended February 28, 2009. Management of the Funds also is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next six months.

The difference between book basis and tax basis unrealized appreciation/depreciation is attributable in part to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies and the discount accretion/premium amortization of debt securities.

Fund	Cost of Investments for Federal Tax Purposes			Gross Unrealized Appreciation for Federal Tax Purposes		Gross Unrealized (Depreciation) for Federal Tax Purposes			Net Unrealized Appreciation (Depreciation) for Federal Tax Purposes
Large-Cap Value Fund	$	258,820,656		$	7,213,324	$	(50,099,334	)	$	(42,886,010	)
Large-Cap Growth Fund		193,634,359			3,770,252		(32,363,078	)		(28,592,826	)
Mid-Cap Value Fund		296,050,671			9,334,005		(92,650,217	)		(83,316,212	)
Mid-Cap Growth Fund		221,011,219			4,985,034		(30,166,670	)		(25,181,636	)
Small-Cap Growth Fund		260,205,133			6,603,044		(35,257,443	)		(28,654,399	)
International Stock Fund		184,298,687			943,070		(55,391,833	)		(54,448,763	)
Emerging Markets Equity Fund		9,463,428			170,532		(1,195,154	)		(1,024,622	)
Short-Term Income Fund		96,579,167			591,316		(9,464,326	)		(8,873,010	)
Short-Intermediate Bond Fund		268,841,832			872,477		(75,150,568	)		(74,278,091	)
Intermediate Tax-Free Fund		100,090,119			2,546,789		(1,766,776	)		780,013
Government Income Fund		959,377,273			15,922,910		(65,492,865	)		(49,569,955	)
Corporate Income Fund		12,697,398			160,344		(143,873	)		16,471
Aggregate Bond Fund		385,488,223			3,812,798		(48,754,044	)		(44,941,246	)
Core Plus Bond Fund		21,636,600			192,316		(140,220	)		52,096
Government Money Market Fund*		1,146,111,734	*		—		—			—
Tax-Free Money Market Fund*		943,149,336	*		—		—			—
Prime Money Market Fund*		5,521,954,734	*		—		—			—

* at amortized cost

88

Marshall Funds

The tax character of distributions reported on the Statements of Changes in Net Assets for the years ended August 31, 2008 and 2007 was as follows:

	2008						2007
Fund	Ordinary Income(1)		Tax-Exempt Income		Long-Term Capital Gains		Ordinary Income(1)		Tax-Exempt Income		Long-Term Capital Gains
Large-Cap Value Fund	$	6,522,355	$	—	$	12,822,870	$	18,858,614	$	—	$	14,512,684
Large-Cap Growth Fund		151,091		—		21,123,638		345,013		—		7,550,618
Mid-Cap Value Fund		19,428,584		—		46,767,331		12,454,207		—		43,973,908
Mid-Cap Growth Fund		—		—		—		—		—		—
Small-Cap Growth Fund		17,082,535		—		31,056,917		4,818,455		—		11,372,971
International Stock Fund		32,223,608		—		33,263,139		3,530,293		—		47,774,480
Short-Term Income Fund		5,210,070		—		—		5,559,089		—		—
Short-Intermediate Bond Fund		21,468,239		—		—		31,170,098		—		—
Intermediate Tax-Free Fund		—		3,297,741		—		—		2,888,545		—
Government Income Fund		32,362,793		—		—		28,521,867		—		—
Aggregate Bond Fund		13,765,481		—		—		2,198,919		—		—
Government Money Market Fund		15,550,662		—		—		13,620,708		—		—
Tax-Free Money Market Fund		29,923		18,383,049		—		13,636		14,927,950		23,860
Prime Money Market Fund		205,089,830		—		—		240,796,645		—		—

(1) For tax purposes, short-term capital gain distributions are considered ordinary income.

As of August 31, 2008, the components of distributable earnings on a tax basis are as follows:

Fund	Undistributed Ordinary Income		Undistributed Tax-Exempt Income			Undistributed Long-Term Capital Gains		Accumulated Capital and Other Losses			Unrealized Appreciation (Depreciation)
Large-Cap Value Fund	$	1,043,988	$	—		$	58,562	$	(4,642,267	)	$	27,146,615
Large-Cap Growth Fund		—		—			—		(1,891,366	)		14,479,448
Mid-Cap Value Fund		819,627		—			12,789,702		—			14,756,642
Mid-Cap Growth Fund		—		—			8,371,209		—			11,870,515
Small-Cap Growth Fund		—		—			—		(30,320,397	)		25,930,989
International Stock Fund		7,216,657		—			4,970,489		(9,935,285	)		(20,721,533	)
Short-Term Income Fund		30,620		—			—		(7,482,131	)		(2,772,582	)
Short-Intermediate Bond Fund		644,868		—			—		(15,004,661	)		(24,033,842	)
Intermediate Tax-Free Fund		605,021		(769	)		474,694		—			1,325,973
Government Income Fund		7,749,930		—			—		—			(15,382,549	)
Aggregate Bond Fund		5,689,285		—			952,604		—			(7,926,810	)
Government Money Market Fund		1,802		—			—		—			—
Tax-Free Money Market Fund		26,757		53			—		—			—
Prime Money Market Fund		9,176		—			—		(343,046	)		—

At August 31, 2008, the Funds had capital loss carryforwards, which reduce the Funds’ taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

	Capital Loss Carryforward to Expire in
Fund	2009		2010		2011		2012		2013		2014		2015		2016		Total
Short-Term Income Fund	$	928,524	$	944,182	$	322,004	$	1,989,874	$	797,744	$	906,238	$	983,288	$	610,277	$	7,482,131
Short-Intermediate Bond Fund		—		2,011,667		3,131,248		—		—		5,042,619		4,819,127		—		15,004,661
Prime Money Market Fund		—		—		343,046		—		—		—		—		—		343,046

During the fiscal year ended August 31, 2008, the Mid-Cap Growth, Government Income, Intermediate Tax-Free, Short-Intermediate Bond and Prime Money Market Funds, respectively, utilized $8,596,454, $218,824, $130,326, $5,825,453 and $51,482 of capital loss carryforwards.

The Short-Term Income Fund had losses expiring during the fiscal year ended August 31, 2008 in the amount of $222,218.

As of August 31, 2008, the Large-Cap Value, Large-Cap Growth, Small-Cap Growth and International Stock Funds had $4,642,267, $1,891,366, $30,320,397 and $8,928,732, respectively, of post-October losses, which were deferred until fiscal year 2009 for tax purposes. Net capital losses incurred after October 31, and within the taxable year were deemed to arise on the first day of the Fund’s next taxable year. As of August 31, 2008, the International Stock Fund had $1,006,553 of post-October currency losses, which were deferred until fiscal year 2009 for tax purposes.

89

Notes to Financial Statements (continued)

5. Investment Adviser Fee and Other Transactions with Affiliates

Investment Adviser Fee—M&I Investment Management Corp., the Funds’ investment adviser (the “Adviser”), receives for its services an investment adviser fee based on a percentage of each Fund’s average daily net assets as listed below. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

	Fund’s ADNA
Fund	on the first $500 million		on the next $200 million		on the next $100 million		in excess of $800 million
Large-Cap Value Fund	0.75	%	0.74	%	0.70	%	0.65	%
Large-Cap Growth Fund	0.75		0.74		0.70		0.65
Mid-Cap Value Fund	0.75		0.74		0.70		0.65
Mid-Cap Growth Fund	0.75		0.74		0.70		0.65
Small-Cap Growth Fund	1.00		1.00		1.00		1.00
International Stock Fund	1.00		0.99		0.95		0.90
Emerging Markets Equity Fund	1.00		0.99		0.95		0.90
Short-Term Income Fund	0.20		0.19		0.10		0.10
Short-Intermediate Bond Fund	0.40		0.39		0.30		0.25
Intermediate Tax-Free Fund	0.60		0.59		0.50		0.45
Government Income Fund	0.40		0.39		0.30		0.25
Corporate Income Fund	0.25		0.24		0.15		0.10
Aggregate Bond Fund	0.40		0.39		0.30		0.25
Core Plus Bond Fund	0.25		0.24		0.15		0.10

	Fund’s ADNA
Fund	on the first $2 billion		on the next $2 billion		on the next $2 billion		on the next $2 billion		in excess of $8 billion
Government Money Market Fund	0.200	%	0.185	%	0.170	%	0.155	%	0.140	%
Tax-Free Money Market Fund	0.200		0.185		0.170		0.155		0.140
Prime Money Market Fund	0.150		0.135		0.120		0.105		0.090

The International Stock Fund’s sub-advisers are Trilogy Global Advisors, LLC and Acadian Asset Management, LLC. The Emerging Markets Equity Fund’s sub-adviser is Trilogy Global Advisors, LLC. The Corporate Income and Core Plus Bond Fund’s sub-adviser is Taplin, Canida & Habacht, LLC, an affiliate of the Adviser. The Adviser compensates each sub-adviser based on the level of average daily net assets of each respective Fund managed by each sub-adviser.

Shareholder Services Fee—Under the terms of a Shareholder Services Agreement with Marshall Investor Services (“MIS”), a division of M&I Trust, each Fund pays MIS at the annual rate of 0.25% of average daily net assets of the Fund’s Investor and Advisor Class shares for the period. The fee paid to MIS is used to finance certain services for shareholders and to maintain shareholder accounts. MIS may voluntarily choose to waive any portion of its fee. MIS can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee—M&I Trust, under the Administrative Services Agreement, provides the Funds with administrative personnel and services.

Equity & Fixed Income Funds		Money Market Funds
Annual Rate	ADNA	Annual Rate	ADNA
0.0925%	on the first $250 million	0.0400%	on the first $2 billion
0.0850	on the next $250 million	0.0300	on the next $2 billion
0.0800	on the next $200 million	0.0250	on the next $2 billion
0.0400	on the next $100 million	0.0200	on the next $2 billion
0.0200	on the next $200 million	0.0100	in excess of $8 billion
0.0100	in excess of $1.0 billion

The fee paid to M&I Trust is based on each Fund’s average daily net assets with respect to the Equity Funds and Fixed Income Funds and the aggregate average daily net assets of all the Money Market Funds. M&I Trust may voluntarily choose to waive any portion of its fee. M&I Trust can modify or terminate this voluntary waiver at any time at its sole discretion.

90

Marshall Funds

Recordkeeping Fees—M&I Trust receives fees for recordkeeping purposes based on per account charges. The following amounts were paid to M&I Trust for the period ended February 28, 2009:

Fund	Fees Paid
Large-Cap Value Fund	$	26,742
Large-Cap Growth Fund		25,837
Mid-Cap Value Fund		27,533
Mid-Cap Growth Fund		26,997
Small-Cap Growth Fund		29,453
International Stock Fund		27,117
Short-Term Income Fund		3,608
Short-Intermediate Bond Fund		9,500
Intermediate Tax-Free Fund		2,749
Government Income Fund		39,221
Aggregate Bond Fund		29,927
Government Money Market Fund		4,578
Tax-Free Money Market Fund		7,062
Prime Money Market Fund		176,537

Custodian Fees—M&I Trust is the Funds’ custodian, except for the International Stock Fund and Emerging Markets Equity Fund for which State Street Bank and Trust Company maintains custody. M&I Trust receives fees based on the level of each Fund’s average daily net assets consisting of two basis points on the first $250,000,000 and one basis point thereafter for the period.

Distribution Services Fee—The Prime Money Market Fund is subject to a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. The Plan authorizes payments by the Fund to finance activities intended to result in the sale of its Advisor Class shares. The Plan provides that the Fund may incur distribution expenses of 0.30% of the average daily net assets of the Fund’s Advisor Class shares.

Securities Lending—The Funds pay a portion of net revenue from securities lending to M&I Trust for its services as the securities lending agent. The securities lending income as shown in the Statements of Operations is net of these expenses. The following amounts were paid for the period ended February 28, 2009:

Fund	Fees Paid
Large-Cap Value Fund	$	38,866
Large-Cap Growth Fund		35,732
Mid-Cap Value Fund		72,430
Mid-Cap Growth Fund		72,695
Small-Cap Growth Fund		226,104
International Stock Fund		38,519
Short-Term Income Fund		12,046
Short-Intermediate Bond Fund		36,317
Government Income Fund		379,889
Aggregate Bond Fund		84,666

General—Certain of the Officers and Directors of the Corporation are also Officers and Directors of one or more of the above companies, which are affiliates of the Corporation. None of the Fund officers or interested directors receive any compensation from the Funds.

91

Notes to Financial Statements (continued)

6. Investment Transactions

Purchases and sales of investments, excluding short-term U.S. government securities, short-term obligations and in-kind contributions, for the period ended February 28, 2009 were as follows:

	Other than U.S. Government Securities				U.S. Government Securities
Fund	Purchases		Sales		Purchases		Sales
Large Cap Value Fund	$	51,579,279	$	68,786,539	$	—	$	—
Large-Cap Growth Fund		112,567,866		133,450,181		—		—
Mid-Cap Value Fund		65,763,696		67,067,448		—		—
Mid-Cap Growth Fund		208,732,783		213,021,537		—		—
Small-Cap Growth Fund		253,725,149		262,662,210		—		—
International Stock Fund		92,727,375		195,269,119		—		—
Emerging Markets Equity Fund		10,467,738		1,308,756		—		—
Short-Term Income Fund		4,499,066		12,522,526		20,310,937		35,052,068
Short-Intermediate Bond Fund		33,423,726		53,632,170		505,577,699		589,512,281
Intermediate Tax-Free Fund		64,089,709		53,718,966		—		—
Government Income Fund		11,507,227		13,227,868		1,354,971,292		1,472,295,143
Corporate Income Fund		6,926,126		—		749,366		—
Aggregate Bond Fund		65,091,036		38,499,036		700,984,125		788,040,554
Core Plus Bond Fund		7,078,524		—		5,641,190		132,773

7. Line of Credit

The Corporation, on behalf of the respective Funds, entered into a $25,000,000 unsecured, committed revolving line of credit (“LOC”) agreement with State Street Bank and Trust Company. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings through January 23, 2009 were charged interest at a rate of 0.50% per annum over the Federal Funds rate. Borrowings subsequent to January 23, 2009 were charged interest at a rate of 0.75% per annum over the greater of the Federal Funds rate and the London Interbank Offered Rate (LIBOR). The LOC includes a commitment fee of 0.09% per annum through January 23, 2009 and 0.15% per annum subsequent to January 23, 2009 on the daily unused portion. The International Stock Fund utilized the LOC during the period ended February 28, 2009. No borrowings were outstanding under the LOC at February 28, 2009. For the period ended February 28, 2009, the average daily loan balance outstanding was $442,471 and the weighted average interest rate was 1.4642%.

8. Recently Issued Accounting Pronouncements

In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities. The provisions are effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. Management has recently begun to evaluate the application of the Statement to the Funds, and is not in a position at this time to evaluate the significance of its impact, if any, on the Funds’ financial statements.

92

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Funds’ prospectuses, which contain facts concerning each Fund’s objective and policies, management fees, expenses, and other information.

Proxy Voting

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling toll free, 1-800-236-FUND (3863) and by accessing the Funds’ Statement of Additional Information, which is available on the Funds’ website at http://www.marshallfunds.com and on the SEC’s website at http://www.sec.gov.

Each Fund’s proxy voting record for the most recent 12-month period ended June 30 is available without charge, upon request, by calling toll free, 1-800-236-FUND (3863) and by accessing the SEC’s website at http://www.sec.gov.

Disclosure of Portfolio Holdings

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Shares of the Marshall Funds are not bank deposits or other obligations of, or issued, endorsed or guaranteed by, M&I Marshall & Ilsley Bank or any of its affiliates. Shares of the Marshall Funds, like shares of all mutual funds, are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

Item 2. Code of Ethics

Not applicable to semi-annual reports.

Item 3. Audit Committee Financial Expert

Not applicable to semi-annual reports.

Item 4. Principal Accountant Fees and Services

Not applicable to semi-annual reports.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments

Included as part of the report to shareholders filed under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 11. Controls and Procedures

a) The Registrant’s principal executive officer and principal financial officer have reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”)) as of a date within 90 days of the filing of this report and have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately

recorded, processed, summarized, reported and made known to them by others within the Registrant and by the Registrant’s service providers.

b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that materially affected, or were reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits

(a)(1)	Not applicable to semi-annual reports.
(a)(2)	Certifications required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(a)(3)	Not applicable to open end investment companies.
(b)	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.

Marshall Funds, Inc.
/s/ John M. Blaser
By:	John M. Blaser
President
April 20, 2009

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.

/s/ John M. Blaser
By:	John M. Blaser
President
(Principal Executive Officer)
April 20, 2009

/s/ Timothy M. Bonin
By:	Timothy M. Bonin
Treasurer (Principal Financial Officer)
April 20, 2009