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: August 31, 2010

Item 1. Reports to Stockholders.

The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1)

	August 31, 2010
	•     Marshall Large-Cap Value Fund •     Marshall Large-Cap Growth Fund •     Marshall Mid-Cap Value Fund •     Marshall Mid-Cap Growth Fund •     Marshall Small-Cap Growth Fund •     Marshall International Stock Fund •     Marshall Emerging Markets Equity Fund
	•     Marshall Ultra Short Tax-Free Fund •     Marshall Short-Term Income Fund •     Marshall Short-Intermediate Bond Fund •     Marshall Intermediate Tax-Free Fund •     Marshall Government Income Fund •     Marshall Corporate Income Fund •     Marshall Aggregate Bond Fund •     Marshall Core Plus Bond Fund
	•     Marshall Government Money Market Fund •     Marshall Tax-Free Money Market Fund •     Marshall Prime Money Market Fund

Table of Contents

Commentaries
Marshall Large-Cap Value Fund	1
Marshall Large-Cap Growth Fund	2
Marshall Mid-Cap Value Fund	3
Marshall Mid-Cap Growth Fund	4
Marshall Small-Cap Growth Fund	5
Marshall International Stock Fund	6
Marshall Emerging Markets Equity Fund	7
Marshall Ultra Short Tax-Free Fund	8
Marshall Short-Term Income Fund	9
Marshall Short-Intermediate Bond Fund	10
Marshall Intermediate Tax-Free Fund	11
Marshall Government Income Fund	12
Marshall Corporate Income Fund	13
Marshall Aggregate Bond Fund	14
Marshall Core Plus Bond Fund	15
Marshall Government Money Market Fund	16
Marshall Tax-Free Money Market Fund	17
Marshall Prime Money Market Fund	18
Explanation of the Indexes and Notes in the Commentary	19
Financial Information
Expense Example	22
Schedule of Investments	24
Marshall Large-Cap Value Fund	24
Marshall Large-Cap Growth Fund	26
Marshall Mid-Cap Value Fund	28
Marshall Mid-Cap Growth Fund	29
Marshall Small-Cap Growth Fund	31
Marshall International Stock Fund	33
Marshall Emerging Markets Equity Fund	37
Marshall Ultra Short Tax-Free Fund	40
Marshall Short-Term Income Fund	56
Marshall Short-Intermediate Bond Fund	59
Marshall Intermediate Tax-Free Fund	61
Marshall Government Income Fund	77
Marshall Corporate Income Fund	78
Marshall Aggregate Bond Fund	81
Marshall Core Plus Bond Fund	83
Marshall Government Money Market Fund	86
Marshall Tax-Free Money Market Fund	87
Marshall Prime Money Market Fund	93
Notes to Schedules of Investments	95
Statements of Assets and Liabilities	96
Statements of Operations	102
Statements of Changes in Net Assets	108
Financial Highlights	114
Notes to Financial Statements	120
Report of Independent Registered Public Accounting Firm	144
Directors and Officers of the Funds	145
Shareholder Report Disclosure of Directors’ Approval of Continuation of Contracts	148

Not FDIC Insured No Bank Guarantee May Lose Value

Annual Report—Commentary Marshall Large-Cap Value Fund

Fund Manager: Analysts:      Daniel P. Brown, CFA, began investment experience in 1997 Kenneth M. Conrad, CFA and
Casey J. Sambs, CFA

The Marshall Large-Cap Value Fund returned -0.42% for the fiscal year ended August 31, 2010 versus the Lipper Large-Cap Value Fund Index and the Russell 1000^® Value Index, which returned 2.65% and 4.96%, respectively.

The equity market continued to be a very turbulent place the past year, marked by 11 of 12 monthly returns of greater than +/- 2% (6 positive, 5 negative). Economic and regulatory uncertainties were major themes that were generally negative for equity investors. Equity investors responded to this volatility by withdrawing record amounts from equity based mutual funds. The increased volatility caused us to put more emphasis on higher quality, dividend paying stocks.

In the past year, the Fund maintained an underweight position of approximately 3% in the Financials sector due to downward housing trends, potentially restrictive regulatory changes, lack of dividends, and weak loan demand. This underweight decision added value, but our stock selection detracted more as we underestimated how investors would respond to the uneven economic recovery and regulatory overhang. The Financials sector was the worst performer over the past year and several of our holdings experienced negative returns. We believe top bank holdings, JP Morgan Chase & Co. (3.1% of the Fund, -15.9%) and Wells Fargo & Co. (1.9% of the Fund, -13.8%), came out of the financial crisis much stronger than their peers and were able to buy weaker franchises at compelling prices. However, their efforts were underappreciated by investors as these two holdings underperformed within the sector.

The Fund was aided by strong stock selection in the Energy sector as top holding ConocoPhillips (2.5% of the Fund, 21.3%) benefited from its divesture/restructuring plan; they intend to return proceeds to shareholders via increased dividends and buybacks. The Energy sector was not immune to volatility as the Gulf of Mexico oil spill affected some of our holdings. Anadarko Petroleum Corp (1.1% of the Fund, -12.5%) held a 25% interest in the well and will likely be responsible for a portion of the clean up costs. We still view this holding favorably as the company has had many successful explorations outside the U.S.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LLCVFI	Russell 1000® VI
1-year (Class Y)	(0.42)%	2.65%	4.96%
1-year (Class I)	(0.14)%	2.65%	4.96%
5-year (Class Y)	(2.18)%	(1.48)%	(1.69)%
10-year (Class Y)	0.61%	(0.03)%	1.92%
Commencement of Operations
(2/1/08) (Class I)	(10.82)%	(8.97)%	(9.92)%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LLCVFI	Russell 1000® VI
1-year (NAV)	(0.42)%	2.65%	4.96%
1-year (Offer)	(6.10)%
5-year (NAV)	(2.18)%	(1.48)%	(1.69)%
5-year (Offer)	(3.32)%
10-year (NAV)	0.61%	(0.03)%	1.92%
10-year (Offer)	0.02%

Expense Ratios	Gross	Net
Investor/Advisor shares	1.33%	1.24%
Institutional shares	1.08%	0.99%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 5.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Consumer Discretionary	8.0%
Consumer Staples	10.6

Energy	11.7
Financials	24.0
Healthcare	13.0
Industrials	10.0

Information Technology	5.7
Materials	2.8
Telecommunication Services	4.0

Utilities	7.0
Purchased Call Options	0.1
Other Assets & Liabilities, Net	3.1
Total	100.0%

1

Annual Report—Commentary Marshall Large-Cap Growth Fund

Fund Managers: Analyst:      Robert G. Cummisford, CFA and Alan K. Creech, began investment experience in 1992 and 1995, respectively Shane T. Sawyer, CFA

The Marshall Large-Cap Growth Fund returned 2.94% for the fiscal year ended August 31, 2010 versus the Lipper Large-Cap Growth Fund Index and the Russell 1000^® Growth Index, which returned 4.25% and 6.14%, respectively.

The past year has seen the equity markets struggle for direction. The remainder of 2009 saw equity markets continue to surge higher off the March bottom as it appeared the recession was well behind us and good times were ahead. However, 2010 ushered in new bouts of uncertainty, panic, and euphoria leading to a volatile but range bound market. Daily moves of 1% or more have become commonplace and stock correlations have reached all time highs.

Amidst this volatility, the stock market has wrestled with largely divergent views of where the economy is headed. One camp has turned quite bearish and points to continued trouble in housing, employment, and confidence and is forecasting a “double dip” recession. The opposite camp believes the global economy continues to recover and points to strong corporate earnings, revenues, and balance sheets and is forecasting the current “soft patch” to be resolved positively.

The Fund struggled to keep pace with market benchmarks in this environment as our fundamental focus on companies with improving revenues and earnings provided ample investment opportunities for us to consider, but has not yet translated into positive stock price performance. Fund performance benefited most from our underweight in the Consumer Staples sector as our process revealed few opportunities and enabled us to avoid many stocks that lagged in the sector. Additionally, the instances where our process showed opportunity proved to be accurate with double digit gains in many stocks including CVS Caremark Corp. and Procter & Gamble Co. each up 19% (each 0.0% of the Fund), and PepsiCo, Inc. and Altria Group, Inc. up over 16% (1.8% and 1.4% of the Fund, respectively).

The Materials and Financials sectors were the most challenging areas for growth investing during the year. A majority of the underperformance in Materials was due to Monsanto (0.0% of the Fund), where we underestimated the global commoditization of Roundup and the stock declined 39% over the year. In addition, Goldman Sachs Group, Inc. (1.0% of the Fund) hurt performance in Financials, as the stock was down 19%. Nonetheless, we continue to hold the stock as we believe the company has strong management with a good fundamental business.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LLCGFI	Russell 1000® GI
1-year (Class Y)	2.94%	4.25%	6.14%
1-year (Class I)	3.17%	4.25%	6.14%
5-year (Class Y)	(1.19)%	(1.01)%	0.10%
10-year (Class Y)	(3.36)%	(5.84)%	(5.36)%
Commencement of Operations
(2/1/08) (Class I)	(6.73)%	(7.26)%	(5.50)%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LLCGFI	Russell 1000® GI
1-year (NAV)	2.94%	4.25%	6.14%
1-year (Offer)	(3.00)%
5-year (NAV)	(1.19)%	(1.01)%	0.10%
5-year (Offer)	(2.35)%
10-year (NAV)	(3.36)%	(5.84)%	(5.36)%
10-year (Offer)	(3.93)%

Expense Ratios	Gross	Net
Investor/Advisor shares	1.39%	1.24%
Institutional shares	1.14%	0.99%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 5.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Consumer Discretionary	12.9%
Consumer Staples	9.5
Energy	7.4
Financials	5.8

Healthcare	8.9
Industrials	12.6
Information Technology	31.9
Materials	5.4

Other Assets & Liabilities, Net	5.6
Total	100.0%

2

Annual Report—Commentary Marshall Mid-Cap Value Fund

Fund Manager: Analysts: Matthew B. Fahey, began investment experience in 1980 Gregory S. Dirkse, CFA; Jeffrey Strong and Brian J. Janowski, CFA, CPA

The Marshall Mid-Cap Value Fund returned 7.62% for the fiscal year ended August 31, 2010 versus the Lipper Mid-Cap Value Fund Index and the Russell Midcap^® Value Index, which returned 8.93% and 13.01%, respectively.

The fiscal year started strong with six of the first eight months posting solid gains. As the economy began to show signs of slowing, the remaining four months of the year produced negative returns. All ten economic sectors in the Russell Index recorded positive results for the year ranging from 29% in Financials to 2% in Telecomm Services.

On an absolute basis, the Fund’s performance was solid, but relative to peers and the passive Russell Index the Fund trailed. The underperformance by the Fund compared to the Russell Index was due primarily to stock selection, although sector allocation was also negative.

In terms of relative stock results, three sectors (Financials, Energy, Utilities) reflect the majority of the underperformance. In the Financials sector, the average stock in the Fund advanced 4%, while the index results reflected a 12% return. The Real Estate Investment Trust (REIT) segment of Financials was a major factor in the underperformance. The average return of REIT’s in the index was approximately 32%, while the Fund was significantly underweight in REIT’s. Our valuation discipline kept us on the sidelines, while REIT’s continued to move up. We suspect investors are grasping for yield producing equities and not focusing on valuation fundamentals. We remain significantly underweight in REIT’s on valuation grounds; we do not believe current prices are justified or can be maintained.

Within the Energy sector, the Fund’s average stock was up 5% versus 15% for the index. Two Gulf of Mexico related stocks held in the Fund, Noble Corp. (1.7% of the Fund) and Plains Exploration & Production Co. (1.7% of the Fund) were down significantly. Neither company was party to the BP PLC event, but both are affected by the drilling moratorium. We continue to hold both stocks and have added to our positions.

In the sector weight category, an overweight in Technology detracted from relative performance as the Fund carried an average weight of 12% during the year compared to 7% in the index, but the sector underperformed overall. The remaining sector weights were generally in line with the benchmark.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LMCVFI	RMCVI
1-year (Class Y)	7.62%	8.93%	13.01%
1-year (Class I)	7.83%	8.93%	13.01%
5-year (Class Y)	(0.35)%	0.26%	0.45%
10-year (Class Y)	6.92%	5.14%	6.95%
Commencement of Operations
(2/1/08) (Class I)	(4.28)%	(5.15)%	(4.81)%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LMCVFI	RMCVI
1-year (NAV)	7.62%	8.93%	13.01%
1-year (Offer)	1.41%
5-year (NAV)	(0.35)%	0.26%	0.45%
5-year (Offer)	(1.53)%
10-year (NAV)	6.92%	5.14%	6.95%
10-year (Offer)	6.29%

Expense Ratios	Gross	Net
Investor/Advisor shares	1.37%	1.24%
Institutional shares	1.12%	0.99%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 5.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Consumer Discretionary	12.6%
Consumer Staples	4.7

Energy	10.3
Financials	21.0
Healthcare	7.9
Industrials	12.0

Information Technology	12.4
Materials	7.5
Telecommunication Services	2.2

Utilities	6.5
Other Assets & Liabilities, Net	2.9
Total	100.0%

3

Annual Report—Commentary Marshall Mid-Cap Growth Fund

Fund Managers: Analysts: Kenneth S. Salmon and Patrick M. Gundlach, CFA, began investment experience in 1986 and 2002, respectively Bryan J. Bigari, CFA; Ryan P. Bushman and Earl R. DeLaet, CFA

The Marshall Mid-Cap Growth Fund returned 14.26% for the fiscal year ended August 31, 2010 versus the Lipper Mid-Cap Growth Fund Index and the Russell Midcap^® Growth Index, which returned 10.51% and 11.58%, respectively.

Fiscal year 2010 began on a strong note with the global economy bouncing back strongly from the Great Recession. The stock market performed well too, led primarily by the more cyclical sectors. However, the arrival of spring was accompanied by some important changes, including: the sovereign debt crisis in Europe, a loss of economic momentum in much of the global economy, and a much more volatile stock market that has had a clear downward bias during the past four months.

Our stock-selection process remains active, but disciplined. First, we focus on identifying those companies for which readily identifiable catalysts are driving a clear improvement in business fundamentals. Our research requires that those positive fundamentals will drive financial performance that is both stronger and more persistent than what is discounted in current stock prices. This process allows us to maintain a diversified portfolio that we believe is well-positioned regardless of the macroeconomic environment.

The Fund’s outperformance was driven by stock selection as sector allocation was modestly dilutive for the period. Energy and Materials performed best while Information Technology and Consumer Staples were the laggards. The top five contributors for the Fund during the period were: Energy XXI (Bermuda), Ltd. (5.0% period-ending weight in the Fund, +101.9%); McMoRan Exploration Co. (5.0% of the Fund, +65.6%); Coinstar, Inc. (2.6% of the Fund, +31.8%); Hecla Mining Co. (0.0% of the Fund, +59.1%); and Cliff Natural Resources (0.0% of the Fund, +134.7%). The five worst performers were: Quantum Corp. (0.7% of the Fund, -24.6%); Heckmann Corp. (1.9% of the Fund, -34.2%); Sonic Solutions, Inc. (1.5% of the Fund, -24.8%); Nuvasive, Inc. (0.4% of the Fund, -42.6%); and Teradyne, Inc. (0.7% of the Fund, -30.5%).

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LMCGFI	RMCGI
1-year (Class Y)	14.26%	10.51%	11.58%
1-year (Class I)	14.49%	10.51%	11.58%
5-year (Class Y)	2.24%	2.13%	0.80%
10-year (Class Y)	(3.06)%	(2.83)%	(2.50)%
Commencement of Operations
(2/1/08) (Class I)	(4.07)%	(5.39)%	(5.04)%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LMCGFI	RMCGI
1-year (NAV)	14.26%	10.51%	11.58%
1-year (Offer)	7.69%
5-year (NAV)	2.24%	2.13%	0.80%
5-year (Offer)	1.04%
10-year (NAV)	(3.06)%	(2.83)%	(2.50)%
10-year (Offer)	(3.63)%

Expense Ratios	Gross	Net
Investor/Advisor shares	1.35%	1.24%
Institutional shares	1.10%	0.99%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 5.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Consumer Discretionary	18.5%
Consumer Staples	1.9

Energy	10.0
Financials	4.0
Healthcare	16.0
Industrials	19.9

Information Technology	23.9
Materials	1.5
Telecommunication Services	2.7
Other Assets & Liabilities, Net	1.6

Total 100.0%

4

Annual Report—Commentary Marshall Small-Cap Growth Fund

Fund Managers: Analysts:      Kenneth S. Salmon and Patrick M. Gundlach, CFA, began investment experience in 1986 and 2002, respectively Bryan J. Bigari, CFA; Ryan P. Bushman and
Earl R. DeLaet, CFA

The Marshall Small-Cap Growth Fund returned 17.70% for the fiscal year ended August 31, 2010 versus the Lipper Small-Cap Growth Fund Index and the Russell 2000^® Growth Index, which returned 8.83% and 7.16%, respectively.

Fiscal year 2010 began on a strong note with the global economy bouncing back strongly from the Great Recession. The stock market performed well too, led primarily by the more cyclical sectors. However, the arrival of spring was accompanied by some important changes, including: the sovereign debt crisis in Europe, a loss of economic momentum in much of the global economy, and a much more volatile stock market that has had a clear downward bias during the past four months.

Our stock-selection process remains active, but disciplined. First, we focus on identifying those companies for which readily identifiable catalysts are driving a clear improvement in business fundamentals. Our research requires that those positive fundamentals will drive financial performance that is both stronger and more persistent than what is discounted in current stock prices. This process allows us to maintain a diversified portfolio that we believe is well-positioned regardless of the macroeconomic environment.

The Fund’s substantial outperformance was driven primarily by stock selection although sector allocation made a modestly positive contribution as well. Energy and Information Technology performed best while Consumer Staples and Financials were the laggards. The top five winners for the Fund during the period were: Energy XXI (Bermuda), Ltd. (5.0% period-ending weight in the Fund, +175.7%); McMoRan Exploration Co. (5.0% of the Fund, +58.0%); Coinstar, Inc. (2.6% of the Fund, +31.8%); Rex Energy Corp. (0.6% of the Fund, +133.8%); and Oclaro, Inc. (0.0% of the Fund, +86.1%). The five worst performers were: Heckmann Corp. (2.5% of the Fund, -31.0%); CDC Corp., Class A (0.5% of the Fund, -58.0%); DJSP Enterprises (0.0% of the Fund, -60.9%); Sykes Enterprises (0.0% of the Fund, -43.2%); and LTX-Credence Corp. (0.8% of the Fund, -40.0%).

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LSCGI	Russell 2000® GI
1-year (Class Y)	17.70%	8.83%	7.16%
1-year (Class I)	17.96%	8.83%	7.16%
5-year (Class Y)	4.24%	(1.04)%	(0.17)%
10-year (Class Y)	2.20%	(2.40)%	(1.94)%
Commencement of Operations
(2/1/08) (Class I)	(1.62)%	(6.16)%	(4.89)%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LSCGI	Russell 2000® GI
1-year (NAV)	17.70%	8.83%	7.16%
1-year (Offer)	10.91%
5-year (NAV)	4.24%	(1.04)%	(0.17)%
5-year (Offer)	3.01%
10-year (NAV)	2.20%	(2.40)%	(1.94)%
10-year (Offer)	1.59%

Expense Ratios	Gross	Net
Investor/Advisor shares	1.60%	1.44%
Institutional shares	1.35%	1.19%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 5.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Consumer Discretionary	14.5%
Consumer Staples	2.4

Energy	11.4
Financials	6.1
Healthcare	18.0
Industrials	11.5

Information Technology	30.4
Materials	2.8
Telecommunication Services	1.5
Other Assets & Liabilities, Net	1.4

Total 100.0%

5

Annual Report—Commentary Marshall International Stock Fund

Investment Adviser: Sub-advisers: M&I Investment Management Corp. Acadian Asset Management, LLC Trilogy Global Advisors, LLC

The Marshall International Stock Fund returned -1.25% for the fiscal year ended August 31, 2010 versus the Lipper International Large-Cap Core Fund Index and the Morgan Stanley Capital International Europe, Australasia and Far East Index (EAFE) which returned -1.13% and -2.34%, respectively.

For the final four months of 2009, international equity markets posted solid returns despite some jitters in response to Dubai’s debt crisis and Greece’s fiscal problems. After posting a modestly positive return in the first quarter of 2010, international equity markets slipped significantly in the second quarter as Europe’s sovereign debt crisis intensified and concerns mounted about the sustainability of China’s economic boom. International equity markets staged an impressive rebound in July as foreign markets responded favorably to banking stress tests in Europe.

Acadian slightly outperformed versus its MSCI EAFE Value benchmark during the period from a combination of geographic allocations to India, Germany, and Turkey; sector allocations to Consumer Discretionary, Financials, and Materials; and stock selections from Canara Bank (0.0% of the Fund, +52.4%), Deutsche Telekom (1.3% of the Fund, +5.1%), and Sabanci (0.2% of the Fund, +19.0%). Performance detractors were geographic allocations to Japan, South Korea, and Greece; sector allocations to Industrials, Telecommunication Services, and Utilities; and stock such as Leopalace 21 (0.0% of the Fund, -64.3%), LG Corp. (0.5% of the Fund, -43.0%), and National Bank of Greece (0.0% of the Fund, -56.3%).

Trilogy also slightly outperformed versus its MSCI EAFE Growth benchmark during the period primarily from stock selection in the Financials, Consumer Discretionary, and Health Care sectors. Stock selection in the Energy sector detracted from performance. Geographically, allocations to Japan and certain Emerging Markets contributed positively to relative performance, but were partially offset by an overweight allocation to Canada. On an individual stock basis, significant contributors for the period were Hutchison Whampoa (0.6% of the Fund, +11.9%), Li & Fung (0.7% of the Fund, +11.6%), and Yara International (1.2% of the Fund, +6.8%), while significant detractors included CRH (0.0% of the Fund, -24.8%), Research In Motion (0.7% of the Fund, -25.5%), and Wolseley (0.6% of the Fund, -14.1%).

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above. The Lipper International Large-Cap Core Fund Index is replacing the Lipper International Multi-Cap Core Fund Index as the Fund’s benchmark. Lipper has reclassified the Fund based on a review of the Fund’s current portfolio holdings. The Lipper International Multi-Cap Core Fund Index will be excluded from this comparison in the future.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LILCCFI	LIMCCFI	EAFE
1-year (Class Y)	(1.25)%	(1.13)%	3.08%	(2.34)%
1-year (Class I)	(0.94)%	(1.13)%	3.08%	(2.34)%
5-year (Class Y)	(1.79)%	0.57%	2.53%	0.96%
5-year (Class I)	(1.44)%	0.57%	2.53%	0.96%
10-year (Class Y)	(1.67)%	0.57%	2.48%	1.10%
10-year (Class I)	(1.37)%	0.57%	2.48%	1.10%

Average Annual
Total Returns (Advisor Class) *
As of 8/31/2010
	Fund	LILCCFI	LIMCCFI	EAFE
1-year (NAV)	(1.25)%	(1.13)%	3.08%	(2.34)%
1-year (Offer)	(6.94)%
5-year (NAV)	(1.79)%	0.57%	2.53%	0.96%
5-year (Offer)	(2.94)%
10-year (NAV)	(1.67)%	0.57%	2.48%	1.10%
10-year (Offer)	(2.25)%

Expense Ratios	Gross	Net
Investor/Advisor shares	1.69%	1.45%
Institutional shares	1.44%	1.20%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 5.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations (2)
Sector	Fund
Consumer Discretionary	14.2%
Consumer Staples	4.6

Energy	10.6
Financials	22.5
Healthcare	7.0
Industrials	12.3

Information Technology	7.5
Materials	7.7
Telecommunication Services	5.0
Utilities	3.9

Other Assets & Liabilities, Net	4.7
Total	100.0%

6

Annual Report—Commentary Marshall Emerging Markets Equity Fund

Investment Adviser: Sub-adviser: M&I Investment Management Corp. Trilogy Global Advisors, LLC

The Marshall Emerging Markets Equity Fund returned 16.63% for the fiscal year ended August 31, 2010 versus the Lipper Emerging Markets Fund Index and the Morgan Stanley Capital International Emerging Markets Index which returned 18.49% and 18.01%, respectively.

For the last four months of 2009, emerging market equities demonstrated impressive relative performance as an asset class. After posting gains in the first quarter of 2010, emerging market equities slipped in the second quarter as Europe’s sovereign debt crisis intensified and concerns mounted about the sustainability of China’s economic boom. Emerging market equities staged an impressive rebound in July as investors responded favorably to banking stress tests in Europe. Although emerging equity markets have still been buffeted by global macroeconomic concerns this year, they have provided a modest diversification benefit to global equity investors by delivering strong performance for the trailing year.

All MSCI EM sectors generated positive returns for the period ranging from Consumer Staples (41%) to Energy (8%). All three main regions of the Emerging Markets universe had strong performance with Latin America rising the most (+24%), followed by Asia (+17%), and EMEA (+16%). Colombia, Chile, Thailand, Peru, and Indonesia all posted noteworthy gains in the range of 39–62% during the period, while the Czech Republic (-12%), Morocco (-6%), Hungary (-5%), and Egypt (-1%) were the only countries in the Index to generate negative returns.

Stock selection in the Financials, Energy, Information Technology, Health Care, and Industrial sectors added the most relative value for the Fund during the period. Holdings in the Consumer Discretionary, Telecommunication Services, and Utility sectors as well as underweight allocations to the Materials and Consumer Staples sectors underperformed on a relative basis. Geographically, stock selection in Latin America and EMEA added the most relative value highlighted by strong relative performance in Chile, Brazil, and Mexico as well as in South Africa and Egypt. Holdings in Asia underperformed as positions in India and Korea detracted from relative performance as did an underweight allocation to Malaysia. On an individual stock basis, significant positive contributors for the period were NovaTek OAO, GDR (1.4% of the Fund, +88%), Companhia Vale do Rio Doce (0.0% of the Fund, +41%), and LAN Airlines SA, ADR (0.5% of the Fund, +129%). Material detractors during the period included Bharti Airtel, Ltd. (1.1% of the Fund, -20%), OJSC Oil Co. Rosneft, GDR (1.6% of the Fund, -15%), and Guangzhou R&F Properties (0.0% of the Fund, -45%).

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LEMFI	EMI
1-year (Class Y)	16.63%	18.49%	18.01%
Commencement of Operations
(12/23/08) (Class Y)	36.31%	42.33%	42.47%
1-year (Class I)	16.88%	18.49%	18.01%
Commencement of Operations
(12/23/08) (Class I)	36.60%	42.33%	42.47%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LEMFI	EMI
1-year (Nav)	16.63%	18.49%	18.01%
1-year (Offer)	9.94%
Commencement of Operations
(12/23/08)
NAV	36.31%	42.33%	42.47%
Offer	31.61%

Expense Ratios	Gross	Net
Investor/Advisor shares	2.77%	1.50%
Institutional shares	2.52%	1.25%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 5.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations (2)
Sector	Fund
Consumer Discretionary	10.8%
Consumer Staples	4.9

Energy	13.1
Financials	30.3
Healthcare	2.0
Industrials	4.5

Information Technology	13.9
Materials	11.5
Telecommunication Services	5.1
Utilities	1.8

Other Assets & Liabilities, Net	2.1
Total	100.0%

7

Annual Report—Commentary Marshall Ultra Short Tax-Free Fund

Fund Managers:
Analysts:
Craig Mauermann and Duane A. McAllister, CFA, began investment experience in 1997 and 1990, respectively Andrew W. Tillman and Erik R. Schleicher

The Marshall Ultra Short Tax-Free Fund returned 1.82% for the period from inception through the fiscal year ended August 31, 2010 versus the Lipper Short Municipal Debt Fund Index, the Barclays Capital 1 Year Municipal Bond Index, and the blended benchmark of 50% Barclays Capital 1 Year Municipal Bond Index and 50% iMoneyNet Money Market Fund Tax-Free National Retail Index, which returned 2.03%, 1.86%, and 0.95%, respectively.

While the overall tax-exempt municipal market performed well over the past year, particularly as the pace of economic growth slowed in recent months, little price movement occurred among the shortest maturities. With the Fed essentially anchoring over-night rates, the steep yield curve encouraged even cautious investors to extend beyond the thirteen month money market threshold. Those who ventured into the ultra short maturity range were rewarded for doing so with excess yield and modest price appreciation over this period. A combination of certain bonds increasing in value as they approached maturity as well as gains earned by a narrowing of credit spreads, provided a modest rise in net asset value for shareholders. The duration range of the Fund did not vary much, generally holding between 0.60 and 0.75 years. We continue to target a weighting of 60% fixed rate issues and 40% floating to maintain liquidity for cash flow needs while also seeking to enhance yield and total return. Overall, the broad strategies have provided favorable relative performance against our benchmark.

Two of the Fund’s better performing sectors were Health Care and Housing. Tax-exempt housing issues began the year undervalued due to lingering concerns in the mortgage market and weak home prices, but the sector rebounded nicely. In the Health Care sector, while uncertainty remains even after the passage of health care reform legislation, many not-for-profit hospital systems are well positioned. Investor recognition of this helped to boost performance in the sector. The Fund was overweight both sectors and underweight the pre-refunded sector, which lagged during the year.

Looking forward, we agree with current market expectations for modest growth and low inflation, the combination of which should keep the Federal Reserve on hold for the foreseeable future. Should economic growth surprise to the upside, we stand ready to make appropriate adjustments as necessary. One strategy for minimizing price volatility is to vary the fixed/floating mixture, giving greater weight to floating rate issues in a rising rate environment. Our primary focus, however, remains on credit. While valuations remain particularly attractive amid “A”-rated issues, caution, diversification, and selectivity remain our watch words in this environment.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses.

Cumulative
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LSMDFI	B1MBI	BI
Commencement of Operations
(10/1/09) (Class Y)	1.82%	2.03%	1.86%	0.95%
Commencement of Operations
(10/1/09) (Class I)	2.05%	2.03%	1.86%	0.95%

Expense Ratios	Gross	Net
Investor shares	1.01%	0.57%
Institutional shares	0.76%	0.32%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Credit Ratings(2)
Sector	Fund
AAA	17.4%
AA	12.2
A	40.4
BBB	7.3

NR	22.8
Other Assets & Liabilities, Net	(0.1)
Total	100.0%

8

Annual Report—Commentary Marshall Short-Term Income Fund

Fund Manager: Analysts: Vincent S. Russo, CFA, began investment experience in 1991 David M. Komberec, CFA; Genny C. Lynkiewicz, CFA; Andrew J. O’Connell; Matthew J. Olmsted, CFA, Abhishek Pulakanti and Andrew M. Reed

The Marshall Short-Term Income Fund returned 6.61% for the fiscal year ended August 31, 2010 versus the Lipper Short-Term Investment Grade Debt Fund Index and the Bank of America Merrill Lynch 1-3 Year U.S. Government/Corporate Index, which returned 6.73% and 3.42%, respectively.

While the recession was technically over, investors remained skittish and highly sensitive to any news that might signal a “double dip” scenario. Overall, the economic recovery has been sluggish and unemployment remains persistently high. Consumer confidence remains low, causing personal savings rates to rise. Although positive for consumer balance sheets, it has translated into modest retail sales growth. The housing market continued to stagnate with sales of new and existing homes at anemic levels. In the middle of these domestic issues, the European Union (EU) experienced its own debt crisis, which further tested investors’ nerves. On the positive side, manufacturing measures signaled expansion for most of the year and corporate profits were on the rise. EU leaders and regulators acted swiftly to implement austerity measures and conduct bank stress tests which calmed investor concerns. Additionally, while the housing market was stagnating, the free fall in prices that occurred in earlier years appeared to have subsided. Investors reacted to all this information, both positive and negative, in a dramatic fashion, which has heightened volatility measures in many sectors.

The Fund performed well through this difficult market environment by taking advantage of opportunities and avoiding pitfalls. The Fund made a modest allocation to the commercial mortgage-backed securities (CMBS) sector, which is not part of the Fund’s benchmark. The CMBS sector came under extreme negative pressures during the 2008 financial crisis, but has seen dramatic improvement since March 2009. The Fund’s allocation to the corporate sector also was in excess of the benchmark, which added to the Fund’s outperformance. The Fund was underweight in the Treasury sector throughout the year, which was additive early on, but detracted from performance during the second half of the year as investors fled riskier asset classes for the relatively safety of Treasuries. Finally, the Fund continued to benefit from its yield curve strategies aimed at emphasizing Treasury holdings in the 5-7 year part of the yield curve. As these securities progress towards maturity and “roll down” the upward sloping yield curve, buyers are willing to pay higher prices for the perceived safety and security of shorter-term bonds.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LSTIDI	ML13
1-year (Class Y)	6.61%	6.73%	3.42%
1-year (Class I)	6.87%	6.73%	3.42%
5-year (Class Y)	4.69%	3.78%	4.53%
10-year (Class Y)	4.49%	3.93%	4.61%
Commencement of Operations
(6/1/07) (Class I)	5.18%	3.81%	4.99%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LSTIDI	ML13
1-year (NAV)	6.50%	6.73%	3.42%
1-year (Offer)	4.41%
5-year (NAV)	4.61%	3.78%	4.53%
5-year (Offer)	4.19%
Commencement of Operations
(11/1/00)
NAV	4.23%	3.87%	4.55%
Offer	4.02%

Expense Ratios	Gross	Net
Investor/Advisor shares	0.92%	0.65%
Institutional shares	0.67%	0.40%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 2.00% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Asset-Backed Securities	9.5%
Collateralized Mortgage Obligations	9.1

Commercial Mortgage Securities	16.8
Corporate Bonds & Notes	46.2
Municipals	2.0
Mutual Funds	6.8

U.S. Government & U.S. Government Agency Obligations	4.7
U.S. Government Agency -Mortgage Securities	0.6
Other Assets & Liabilities, Net	4.3
Total	100.0%

9

Annual Report—Commentary Marshall Short-Intermediate Bond Fund

Fund Manager: Analysts: Jason D. Weiner, CFA, began investment experience in 1993 David M. Komberec, CFA; Andrew J. O’Connell; Matthew J. Olmsted, CFA; Abhishek Pulakanti; Andrew M. Reed and Vincent S. Russo, CFA

The Marshall Short-Intermediate Bond Fund returned 12.25% for the fiscal year ended August 31, 2010 versus the Lipper Short/Intermediate Investment Grade Debt Fund Index and the Barclays Intermediate Government/Credit Index, which returned 8.55% and 8.18%, respectively.

The Fund’s fiscal year saw a continuation of the market rally that began in March 2009. Since that time, all sectors of the bond market posted positive total returns, with the strongest returns provided by the commercial mortgage-backed securities (CMBS) sector. This sector, which was much maligned by investors during the financial crisis, posted a total return for the fiscal year of 21.20%. Overall, the corporate sector returned 12.76%, led by financial industry securities. The recent equity-like performance of these sectors serves to highlight the severity of their largely unwarranted devaluations during the crisis.

Investors, for the most part, remained jaded, pessimistic, and apprehensive, which led to significant market volatility throughout the year. While the recession “officially” ended in summer 2009, the recovery was underwhelming and talk of a “double dip recession” became louder and more pronounced over the course of the year. High unemployment, slow retail sales, lack of consumer confidence, and a stagnant housing market were the primary factors concerning investors. While manufacturing measures were strong for most of the year, this failed to translate into new jobs as workers learned to do more with less. Another challenge came in the second quarter in the form of a European Union (EU) debt crisis which upset the fragile state of investors and caused a flight to quality. While action by European leaders and regulators assuaged much of the fear, investors remain uncertain about the stability and long-term viability of the EU.

The Fund performed well through this difficult market environment, both on an absolute basis and relative to peers and market benchmarks. The Fund benefited from its allocation to CMBS, which was reduced as valuations climbed significantly during the year. Further, an overweight to the corporate sector was additive to performance. The Fund also benefited from a tactical shift into the Treasury sector early in the second quarter. This move was made in anticipation of a flight to quality on negative news from the EU, which ultimately occurred later in the second quarter. Other factors including conservative security selection and the timely employment of specific yield curve strategies added to the overall strong performance of the Fund.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LSIDF	BIGCI
1-year (Class Y)	12.25%	8.55%	8.18%
1-year (Class I)	12.65%	8.55%	8.18%
5-year (Class Y)	5.46%	4.82%	5.67%
10-year (Class Y)	5.47%	5.11%	6.10%
Commencement of Operations
(6/1/07) (Class I)	7.04%	5.85%	7.15%

Average Annual
Total Returns (Advisor Class) *
As of 8/31/2010
	Fund	LSIDF	BIGCI
1-year (NAV)	12.37%	8.55%	8.18%
1-year (Offer)	8.16%
5-year (NAV)	5.37%	4.82%	5.67%
5-year (Offer)	4.56%
10-year (NAV)	5.31%	5.11%	6.10%
10-year (Offer)	4.90%

Expense Ratios	Gross	Net
Investor/Advisor shares	0.94%	0.80%
Institutional shares	0.69%	0.55%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 3.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Collateralized Mortgage Obligations	2.7%
Commercial Mortgage Securities	10.5

Corporate Bonds & Notes	35.1
Municipals	1.2
U.S. Government & U.S. Government Agency Obligations	36.2
U.S. Government Agency -Mortgage Securities	8.7

Other Assets & Liabilities, Net	5.6
Total	100.0%

10

Annual Report—Commentary Marshall Intermediate Tax-Free Fund

Fund Managers: Analyst:      John D. Boritzke, CFA and Duane A. McAllister, CFA, began investment experience in 1983 and 1987, respectively Andrew W. Tillman and
Erik R. Schleicher

The Marshall Intermediate Tax-Free Fund returned 9.78% for the fiscal year ended August 31, 2010 versus the Lipper Intermediate Municipal Debt Fund Index and the Barclays Capital Municipal Bond 1–15 Year Blend Index, which returned 8.85%, and 8.29%, respectively.

The tax-exempt municipal market performed very well over the past year, particularly as the pace of economic growth slowed in recent months. Weaker economic data and reduced inflation fears allowed municipal yields to fall with longer rates falling more than short maturities. Reduced supply helped long end performance as nearly one-third of all new municipal supply was issued in the taxable market—primarily through the Build America Bond program. Generally, it was a year in which risk, such as longer duration and lower credit quality, was well rewarded despite heightened attention on state and local budget pressures. The demand for income, evident by the steady cash flows into the tax-exempt market and the Fund, also helped to narrow credit spreads between lower quality and higher quality issuers. The out performance of lower-rated credits contributed to the Fund’s favorable returns, as did our exposure to longer maturities along the yield curve. In hindsight, had we fully anticipated the sharp decline in rates, perhaps a more aggressive duration posture may have been appropriate, but with rates already low erring on the side of caution seemed the prudent stance.

Two of the Fund’s better performing sectors were Health Care and Housing. Tax-exempt housing issues began the year under-valued due to lingering concerns in the mortgage market and weak home prices, but the sector rebounded nicely. In the Health Care sector, while uncertainty remains even after the passage of health care reform legislation, many not-for-profit hospital systems are well-positioned. Investor recognition of this helped to boost performance in the sector. The Fund was overweight both sectors and underweight the pre-refunded sector, which lagged during the year.

Looking forward, we concur with market expectations for modest growth and low inflation, which should keep the Federal Reserve on hold well into 2011. An important issue we are monitoring is clarity on extension of the Build America Bond tax credit beyond 2010. If not extended, modest downward pressure on longer tax-exempt prices could occur. The primary focus, however, remains on credit. While valuations remain particularly attractive amid “A”-rated issues, caution, diversification, and selectivity remain our watch words in this environment.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

Average Annual
Total Returns (Investor Class)*
As of 8/31/2010
	Fund	LIMDI	BMB15I
1-year	9.78%	8.85%	8.29%
5-year	5.47%	4.37%	5.21%
10-year	5.15%	4.72%	5.42%

Expense Ratios	Gross	Net
Investor shares	1.14%	0.56%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Credit Ratings(2)
Sector	Fund
AAA	22.2%
AA	25.5

A	33.2
BBB	6.6
NR	8.6
Other Assets & Liabilities, Net	3.9

Total 100.0%

11

Annual Report—Commentary Marshall Government Income Fund

Fund Manager: Analyst: Jason D. Weiner, CFA, began investment experience in 1993 David M. Komberec, CFA

The Marshall Government Income Fund returned 9.49% for the fiscal year ended August 31, 2010 versus the Lipper U.S. Mortgage Fund Index and the Barclays U.S. Mortgage-Backed Securities Index, which returned 8.80% and 6.97%, respectively.

Market volatility was one of the biggest challenges faced by investors, particularly in the second half of the fiscal year. The recession was technically over, but the recovery was lackluster. Most troubling was the persistent high level of unemployment and lack of any real prospects for job growth in the near term. Consumer confidence remained at low levels, resulting in sluggish retail sales. While housing reached all time affordability levels, consumers were reluctant to buy on fears of additional job losses. Halfway through the second quarter, the European Union (EU) faced its own debt crisis, which sparked a panic rally into Treasury securities. Quick action by EU officials to implement austerity measures and the completion of bank stress tests by the Central Bank calmed investors, although concerns over the long-term viability of the EU remained. Not all news was bad, however, as manufacturing measures signaled expansionary levels throughout the fiscal year. Additionally, corporate profits-per-worker reached all time highs. Both of these factors should spur hiring, but workers continue to improve productivity and do more with less. The overall tenor of the markets can best be described as skittish with investors reacting dramatically to both good and bad news.

The past fiscal year brought another round of strong returns for bond investors. Structured product including commercial (CMBS) and residential (MBS) mortgage-backed securities provided significant excess returns over similar duration Treasury securities. Corporate bonds also did well ending the year on a positive note both on an absolute basis and relative to Treasuries.

The Fund performed well through this difficult market. Fund performance was enhanced with the strategic allocation to CMBS, which was the best performing of the investment grade bond market sectors. Security selection within the MBS sector also enhanced performance as the Fund concentrated on identifying higher coupon securities with attractive relative valuations and a low probability for pre-payment. The Fund, concerned with agency MBS reaching the highest valuations in history, allocated assets to Treasuries during the second quarter of 2010, which detracted from performance versus the benchmark as agency MBS continued to outperform in the months of June and July.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LUSMI	BMI
1-year (Class Y)	9.49%	8.80%	6.97%
1-year (Class I)	9.65%	8.80%	6.97%
5-year (Class Y)	5.97%	5.44%	6.38%
10-year (Class Y)	5.88%	5.58%	6.42%
Commencement of Operations
(6/1/07) (Class I)	7.67%	6.62%	7.75%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LUSMI	BMI
1-year (NAV)	9.49%	8.80%	6.97%
1-year (Offer)	5.38%
5-year (NAV)	5.89%	5.44%	6.38%
5-year (Offer)	5.09%
10-year (NAV)	5.71%	5.58%	6.42%
10-year (Offer)	5.31%

Expense Ratios	Gross	Net
Investor/Advisor shares	0.90%	0.80%
Institutional shares	0.65%	0.55%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 3.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Asset-Backed Securities	0.6%
Collateralized Mortgage Obligations	8.8

Commercial Mortgage Securities	9.5
Corporate Bonds & Notes	1.6
U.S. Government & U.S. Government Agency Obligations	26.0
U.S. Government Agency-Mortgage Securities	53.8

Other Assets & Liabilities, Net	(0.3)
Total	100.0%

12

Annual Report—Commentary Marshall Corporate Income Fund

Investment Adviser: Sub-adviser: M&I Investment Management Corp. Taplin, Canida & Habacht, LLC

The Marshall Corporate Income Fund returned 13.28% for the fiscal year ended August 31, 2010 versus the Lipper Intermediate Investment Grade Debt Fund Index and the Barclays Capital U.S. Credit Index, which returned 12.70% and 12.87%, respectively.

Quality and yield curve strategies were the primary drivers of favorable absolute and relative returns. Over the past twelve months, our above market commitment to BBB corporate bonds benefited the portfolio as BBB’s were the best performing quality category of the fixed income market, outperforming duration-matched Treasuries by 540 basis points of excess return.

For the past twenty months, the Federal Reserve has kept its targeted range for the Fed Funds rate at 0–¼% while reiterating its expectation that the benchmark lending rate will remain “exceptionally low… for an extended period.” Short-term Treasury yields are hovering at all-time lows, with the two-year yield at 0.5%. Exceptionally low rates on the short-end of the curve have resulted in the steepest Treasury yield curve on record. Our barbell strategy to managing duration benefits the Fund as longer dated securities outperformed intermediate term maturities. Over the past twelve months, long corporates outperformed intermediate corporates by 422 basis points (+13.02% versus +8.80%).

A similar barbell approach to credit, emphasizing lower quality investment grade securities on the long end of the curve and high quality floating-rate notes on the short end of the curve, enhanced Fund performance over the past twelve months. Long BBB corporates were the best performing quality category on the long end of the curve, outperforming AAA, AA and A rated corporates by 2,083, 176 and 445 basis points of excess return, respectively.

In our view, the unsustainable path of growth in government debt suggests we are in the early stages of a transition to a rising interest rate environment. Our floating rate note holdings should benefit from preservation of principal in such an interest rate environment. Corporate bonds have historically outperformed other sectors in a stable to rising interest rate environment. We believe corporations have taken important steps toward improving their creditworthiness over the past year, including an emphasis on more permanent sources of funding, reduced leverage, and a strengthened capital base via equity issuance that benefit bondholders.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LIIGDFI	BCCI
1-year (Class Y)	13.28%	12.70%	12.87%
Commencement of Operations
(12/23/08) (Class Y)	19.62%	14.49%	15.80%
1-year (Class I)	13.56%	12.70%	12.87%
Commencement of Operations
(12/23/08) (Class I)	19.91%	14.49%	15.80%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LIIGDFI	BCCI
1-year (Nav)	13.29%	12.70%	12.87%
1-year (Offer)	9.05%
Commencement of Operations
(12/23/08)
NAV	19.64%	14.49%	15.80%
Offer	16.96%

Expense Ratios	Gross	Net
Investor/Advisor shares	1.89%	0.85%
Institutional shares	1.64%	0.60%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 3.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Asset-Backed Securities	9.5%
Corporate Bonds & Notes	82.4

Other Assets & Liabilities, Net	8.1
Total	100.0%

13

Annual Report—Commentary Marshall Aggregate Bond Fund

Fund Manager: Analysts: Jason D. Weiner, CFA, began investment experience in 1993 David M. Komberec, CFA; Andrew J. O’Connell; Matthew J. Olmsted, CFA; Abhishek Pulakanti; Andrew M. Reed and Vincent S. Russo, CFA

The Marshall Aggregate Bond Fund returned 12.25% for the fiscal year ended August 31, 2010 versus the Lipper Intermediate Investment Grade Debt Fund Index and the Barclays Aggregate Bond Index, which returned 12.70% and 9.18%, respectively.

The Fund’s fiscal year brought equity-like returns to bond investors as the markets continued to heal from the recent financial crisis and economic recession. For the past twelve months, all sectors of the bond market posted positive total returns, led by commercial mortgage-backed securities (CMBS) and financial names within the Corporate sector. These securities, which were the worst performing in 2008 and the first half of 2009, saw significant recovery as fundamentals improved and investor confidence returned.

While the recession was deemed officially over in the summer of 2009, the markets continued to exhibit significant volatility as the economic recovery failed to meet expectations. Unemployment remained stalled in the 9.5%–10% range for the year. Housing prices stabilized, but sales and new building activity remained anemic. The European debt crisis, which came to a head in the second quarter, sparked a broad scale panic and subsequent market correction. While the austerity measure put in place by European governments and the results of the European bank stress tests put some fears to rest, the overall health and sustainability of the European Union remained at the forefront of investors’ minds. On a more positive note, manufacturing measures were strong for most of the year on inventory rebuilding and increased overseas demand and corporate profits-per-worker reached an all time high. In theory, these two points should boost hiring, but have yet to translate into jobs.

The Fund performed well versus its market benchmark. Over the course of the year, as the CMBS sector recovered, holdings were sold to capture gains. Additionally, the Fund maintained a modest overweight to corporate bonds, namely Financials, which outperformed other sectors of the bond market. A tactical reallocation into the Treasury sector at the beginning of the second quarter also enhanced performance as the sector rallied on fears surrounding Europe. The Fund continued to benefit from its yield curve strategies aimed at emphasizing holdings in the five to seven year part of the yield curve. As these securities progress towards maturity and “roll down” the upward sloping yield curve, buyers are willing to pay higher prices for the perceived safety and security of shorter-term bonds.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses. Sales loads applicable to the Advisor Class shares would reduce the performance shown above.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LIIGDFI	BABI
1-year (Class Y)	12.25%	12.70%	9.18%
Commencement of Operations
(6/1/07) (Class Y)	9.13%	6.81%	7.61%
1-year (Class I)	12.43%	12.70%	9.18%
Commencement of Operations
(6/1/07) (Class I)	9.37%	6.81%	7.61%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LIIGDFI	BABI
1-year (Nav)	12.25%	12.70%	9.18%
1-year (Offer)	8.01%
Commencement of Operations
(6/1/07)
NAV	9.14%	6.81%	7.61%
Offer	7.86%

Expense Ratios	Gross	Net
Investor/Advisor shares	0.92%	0.80%
Institutional shares	0.67%	0.55%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Performance based on offering price (“offer”) reflects the 3.75% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Collateralized Mortgage Obligations	2.8%
Commercial Mortgage Securities	6.1
Corporate Bonds & Notes	30.2
Municipals	3.0
U.S. Government & U.S. Government Agency Obligations	35.1
U.S. Government Agency - Mortgage Securities	16.3
Other Assets & Liabilities, Net	6.5
Total	100.0%

14

Annual Report—Commentary Marshall Core Plus Bond Fund

Investment Adviser: Sub-adviser: M&I Investment Management Corp. Taplin, Canida & Habacht, LLC

The Marshall Core Plus Bond Fund returned 10.19% for the fiscal year ended August 31, 2010 versus the Lipper Intermediate Investment Grade Debt Fund Index and the Barclays Aggregate Bond Index, which returned 12.70% and 9.18%, respectively.

Sector, quality, and yield curve strategies were the primary drivers of favorable absolute and relative returns. Our above market commitment to corporate bonds benefited the Fund as corporate bonds outperformed duration-matched Treasuries by 311 basis points of excess return. The Fund was overweight lower quality investment grade corporate bonds, BBB rated, and it was the best performing quality category of the investment grade fixed income market, outperforming duration-matched Treasuries by 540 basis points of excess return.

For the past twenty months, the Federal Reserve has kept its targeted range for the Fed Funds rate at 0–¼% while reiterating its expectation that the benchmark lending rate will remain “exceptionally low… for an extended period.” Short-term Treasury yields were hovering at all-time lows, with the two-year yield at 0.5%. Exceptionally low rates on the short-end of the curve have resulted in the steepest yield curve on record. Our barbell strategy to managing duration benefitted the Fund as longer dated securities outperformed intermediate maturities. By way of example, long Treasuries outperformed intermediate Treasuries by 176 basis points (+7.46% versus +5.70%).

On August 18, 2010 the Congressional Budget Office (CBO) updated its Long-Term Budget Outlook, describing the outlook as “daunting,” as its projections “provide a clear indication of the serious nature of the fiscal challenge facing the nation.” According to the CBO, the projections “would reduce national saving, leading to higher interest rates, more borrowing from abroad, and less domestic investment—which in turn would lower income growth…. would also reduce lawmakers’ ability to respond to economic downturns and other challenges… (and) would increase the probability of a fiscal crisis.” In our view, the unsustainable path of growth in debt suggests that we are in the early stages of a transition to a rising interest rate environment. Accordingly, the Fund is underweight Treasury securities and overweight corporate bonds, which have historically outperformed other sectors in a rising interest rate environment. We believe corporations have taken important steps toward improving their creditworthiness over the past year, including an emphasis on more permanent sources of funding, reduced leverage, and a strengthened capital base via equity issuance that benefit bondholders.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses.

Average Annual
Total Returns (Investor Class(Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LIIGDFI	BABI
1-year (Class Y)	10.19%	12.70%	9.18%
Commencement of Operations
(12/23/08) (Class Y)	12.57%	14.49%	8.37%
1-year (Class I)	10.46%	12.70%	9.18%
Commencement of Operations
(12/23/08) (Class I)	12.87%	14.49%	8.37%

Expense Ratios	Gross	Net
Investor shares	1.17%	0.85%
Institutional shares	0.92%	0.60%

The net expense ratio shown reflects contractual expense limitations made by the Adviser, currently through December 31, 2010. The Adviser has committed to continue this arrangement through December 31, 2011. The Fund’s return would have been lower without these contractual expense limitations.

The performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original costs. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

Portfolio Sector Allocations(2)
Sector	Fund
Asset-Backed Securities	5.6%
Commercial Mortgage Securities	3.2

Corporate Bonds & Notes	62.0
U.S. Government & U.S. Government Agency Obligations	9.1
U.S. Government Agency - Mortgage Securities	8.5
Other Assets & Liabilities, Net	11.6

Total 100.0%

15

Annual Report—Commentary Marshall Government Money Market Fund

Fund Manager:
Analyst:
John D. Boritzke, CFA, began investment experience in 1983 Genny C. Lynkiewicz, CFA

The Marshall Government Money Market Fund returned 0.01% for the fiscal year ended August 31, 2010 versus the Lipper U.S. Government Money Market Fund Index and the iMoneyNet, Inc. Government Money Market Index, which returned 0.02% and 0.02%, respectively.

Fiscal year 2010 encompassed a time when the Federal Reserve chose to leave monetary policy unchanged, with historically low Federal Funds rates continuing to suppress overall money market fund yield levels. The domestic economic backdrop simply was not strong enough to support a higher interest rate policy, despite signs of a nascent recovery. Additionally, the Federal Reserve was careful not to tighten policy prematurely to avoid the monetary mistakes made after the Great Depression, or more recently, in Japan.

Federal Reserve interest rate policy is still viewed as accommodative since inflation trends and stable inflation expectations remain. In fact, the latest Federal Reserve commentary indicates that we would likely see “exceptionally low levels of federal funds for an extended period.” What is an extended period of time? The market assumption is several more calendar quarters without monetary tightening. We expect that money market fund investors will continue to experience low absolute returns until monetary policy changes lead to higher rates. As always, Federal Reserve policy will be highly data dependent.

The low interest rate environment, combined with a limited supply of short-term securities, suppressed short-term yields in the fixed income markets to nearly zero percent. At various points during the fiscal year, the Adviser voluntarily waived certain fees and absorbed certain expenses to maintain a positive net yield for the Fund. The Fund remained in a very liquid position and a short average days-to-maturity profile since extending into longer dated investments did not offer much incremental yield improvement. Although we are not concerned that short-term interest rates will move higher anytime soon, little doubt exists that the ultimate direction of the next Federal Reserve monetary move will be a tightening. One new area of opportunity for the Fund was found in the agency-backed short-term municipal money market space. Recognizing that historically low level of interest rates remain, the Fund will remain flexible and take advantage of whatever opportunities lie ahead in fiscal 2011.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses.

Average Annual
Total Returns (Investor Class)*
As of 8/31/2010
	Fund	LUSGMMFI	INGMMI
1-year	0.01%	0.02%	0.02%
5-year	2.56%	2.37%	2.20%
Commencement of Operations
(5/18/04)	2.41%	2.21%	2.05%
7-day Current Yield 0.01%

Average Annual
Total Returns (Institutional Class)*
As of 8/31/2010
	Fund	LUSGMMFI	INGMMI
1-year	0.09%	0.02%	0.02%
5-year	2.78%	2.37%	2.20%
Commencement of Operations
(5/29/04)	2.65%	2.21%	2.06%
7-day Current Yield 0.08%

The performance data quoted represents past performance which is no guarantee of future results. Mutual Fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

An investment in the Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Portfolio Sector Allocations(2)
Sector	Fund
Commercial Paper	3.7%
Municipals	17.4
U.S. Government & U.S. Government Agency Obligations	18.1

Repurchase Agreements	60.8
Other Assets and Liabilities, Net	0.0
Total	100.0%

16

Annual Report—Commentary Marshall Tax-Free Money Market Fund

Fund Manager: Analyst: Craig J. Mauermann, began investment experience in 1997 Erik R. Schleicher

The Marshall Tax-Free Money Market Fund returned 0.30% for the fiscal year ended August 31, 2010 versus the Lipper Tax Exempt Money Market Fund Index and the iMoneyNet, Inc. Fund Report/Tax-Free National Retail, which returned 0.03% and 0.04%, respectively.

Over the past twelve months, the U.S. experienced a weak economic recovery, generating only slight improvements in unemployment levels. Since cutting its overnight lending rate to nearly zero in December, 2008 the Federal Reserve has maintained a loose monetary policy that should be generating substantial growth in the U.S. economy by now. The economic recovery, which began in March 2009, appeared strong early on, but slowed considerably this year, most notably in the second quarter. American confidence also was tested by the European debt crisis and the oil spill in the Gulf of Mexico.

Throughout the fiscal year, we hoped the government would encourage business owners to expand and hire. Instead, high unemployment continued with consumers and businesses focused on debt reduction rather than spending. We are encouraged by a number of signals in the economy that growth may improve. Consumer spending has rebounded more than expected as workers with jobs are working more hours, offsetting the high pool of unemployed. Transportation companies (e.g. trains, trucking, and shipping) are reporting stronger demand. Auto and truck sales are gradually rebounding and still have more room to grow. Housing remains weak, but prices have probably bottomed in most of the U.S. Finally, the number of job openings has been rising and currently stands at about three million around the country.

Municipal securities and municipal funds remained attractive investments relative to taxable securities throughout the fiscal year. We expect this trend to continue if and when tax rates rise in the coming year, increasing the value of the federal tax-free nature of municipals.

The Fund performed well during the past year versus peers and market benchmarks. Last year at this time, the Fund had a longer average maturity, but today is roughly in-line with peers. Floating rate bonds were the most attractive option as yields on most fixed-rate notes remained low throughout the year. As a result, the Fund’s average maturity shortened as maturing fixed notes have outpaced new note purchases. As a measure of risk control, the Fund remained widely diversified across states, sectors and industries.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses.

Average Annual
Total Returns (Investor Class)*
As of 8/31/2010
	Fund	LTEMMFI	IMNTFNR
1-year	0.30%	0.03%	0.04%
5-year	2.09%	1.76%	1.74%
Commencement of Operations
(9/23/04)	2.03%	1.72%	1.70%
7-day Current Yield 0.16%

Average Annual
Total Returns (Institutional Class)*
As of 8/31/2010
	Fund	LTEMMFI	IMNTFNR
1-year	0.55%	0.03%	0.04%
5-year	2.34%	1.76%	1.74%
Commencement of Operations
(6/30/05)	2.34%	1.76%	1.74%
7-day Current Yield 0.41%

The performance data quoted represents past performance which is no guarantee of future results. Mutual Fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

An investment in the Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Portfolio Sector Allocations(2)
Sector	Fund
Municipals	98.7%
Mutual Funds	0.1

Other Assets & Liabilities, Net	1.2
Total	100.0%

17

Annual Report—Commentary Marshall Prime Money Market Fund

Fund Manager: Analysts: John D. Boritzke, CFA, began investment experience in 1983 David M. Komberec, CFA; Genny C. Lynkiewicz, CFA; Andrew J. O’Connell; Matthew J. Olmsted, CFA, Abhishek Pulakanti and Andrew M. Reed

The Marshall Prime Money Market Fund returned 0.04% for the fiscal year ended August 31, 2010 versus the Lipper Money Market Fund Index and the iMoneyNet, Inc. Money Fund Report Averages, which returned 0.04% and 0.04%, respectively.

Fiscal year 2010 encompassed a time when the Federal Reserve chose to leave monetary policy unchanged, with historically low Federal Funds rates continuing to suppress overall money market fund yield levels. The domestic economic backdrop simply was not strong enough to support a higher interest rate policy, despite signs of a recovery. Additionally, the Federal Reserve was careful not to tighten policy prematurely to avoid the monetary mistakes made after the Great Depression, or more recently, in Japan.

Federal Reserve interest rate policy is still viewed as accommodative since inflation trends and stable inflation expectations remain. In fact, the latest Federal Reserve commentary indicates that we would likely see “exceptionally low levels of federal funds for an extended period.” What is an extended period of time? The market assumption is several more calendar quarters without monetary tightening. We expect that money market fund investors will continue to experience low absolute returns until monetary policy changes lead to higher rates. As always, Federal Reserve policy will be highly data dependent.

The low interest rate environment, combined with a limited supply of short-term securities, suppressed short-term yields in the fixed income markets to nearly zero percent. At various points during the fiscal year, the Adviser voluntarily waived certain fees and absorbed certain expenses to maintain a positive net yield for the Fund. The Fund did take advantage of a brief blip upward in LIBOR rates, which normally move in lockstep with Federal Funds rates. Due to sovereign credit quality concerns, European banks demanded higher rates for loans between themselves. The Fund owned some paper directly tied to LIBOR, which boosted yields temporarily. In addition, the Fund owned some positions in tax-free short-term investments, a strategy never used before, but peculiarly advantageous in today’s market. The Fund will remain flexible and take advantage of whatever opportunities lie ahead in fiscal 2011.

Growth of an Assumed $10,000 Investment(1)*

See Explanation of the Indexes and Notes in the Commentary for additional information.

The above graph relates to the Investor Class shares of the Fund. Performance for the Advisor Class shares and the Institutional Class shares will vary from the performance of the Investor Class shares shown above due to differences in charges and expenses.

Average Annual
Total Returns (Investor Class (Y)* and Institutional Class (I))*
As of 8/31/2010
	Fund	LMMFI	MFRA
1-year (Class Y)	0.04%	0.04%	0.04%
1-year (Class I)	0.25%	0.04%	0.04%
5-year (Class Y)	2.81%	2.60%	2.49%
5-year (Class I)	3.06%	2.60%	2.49%
10-year (Class Y)	2.53%	2.30%	2.24%
10-year (Class I)	2.79%	2.30%	2.24%
7-day Current Yield (Y) 0.04%
7-day Current Yield (I) 0.29%

Average Annual
Total Returns (Advisor Class)*
As of 8/31/2010
	Fund	LMMFI	MFRA
1-Year	0.01%	0.04%	0.04%
5-Year	2.56%	2.60%	2.49%
10-Year	2.26%	2.30%	2.24%
7-day Current Yield 0.01%

The performance data quoted represents past performance which is no guarantee of future results. Mutual Fund performance changes over time and current performance may be lower or higher than what is stated. To receive current performance to the most recent month-end, please call 1-800-236-3863.

An investment in the Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Portfolio Sector Allocations(2)
Sector	Fund
Certificates of Deposit	12.0%
Commercial Paper	43.3

Corporate Bonds & Notes	1.3
Funding Agreements	3.2
Municipals	7.8
Notes-Variable	6.9

Repurchase Agreements	21.5
Trust Demand Notes	4.0
Other Assets and Liabilities, Net	0.0
Total	100.0%

18

Explanation of the Indexes and Notes in the Commentary

The views expressed in the commentary are as of August 31, 2010 and are those of the Funds’ investment adviser and/or portfolio manager(s). The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of the Funds or any individual security, industry, market sector, or the markets generally. Statements involving predictions, assessments, analyses, or outlook for individual securities, industries, market sectors, and/or markets involve risks and uncertainties. In addition to the general risks described for the Funds in their current Prospectuses, other factors bearing on these commentaries include the accuracy of the investment adviser’s or portfolio manager’s forecasts and predictions and the appropriateness of the investment programs designed by the investment adviser or portfolio managers to implement their strategies efficiently and effectively. Any one, or more, of these factors, as well as other risks affecting the securities markets and investment instruments generally, could cause the actual results of a Fund to differ materially as compared to benchmarks associated with that Fund. The line graphs and tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The gross and net expense ratios are based on expenses incurred by a Fund as disclosed in the Funds’ Prospectuses dated December 29, 2009.

Fund/Benchmark Comparisons per Fund		Explanation
Large-Cap Value Fund*	LLCVFI—Lipper Large-Cap Value Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	Russell 1000® VI—Russell 1000® Value Index	The Russell 1000® VI measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.(6)
Large-Cap Growth Fund*	LLCGFI—Lipper Large-Cap Growth Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	Russell 1000® GI—Russell 1000® Growth Index	The Russell 1000® GI measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.(6)
Mid-Cap Value Fund*	LMCVFI—Lipper Mid-Cap Value Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	RMCVI—Russell Midcap® Value Index	The RMCVI measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000® Value Index.(6)
Mid-Cap Growth Fund*	LMCGFI—Lipper Mid-Cap Growth Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	RMCGI—Russell Midcap® Growth Index	The RMCGI measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000® Growth Index.(6)
Small-Cap Growth Fund*(3)	LSCGI—Lipper Small-Cap Growth Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	Russell 2000® GI—Russell 2000® Growth Index	The Russell 2000® GI measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.(6)
International Stock Fund*(5)	LILCCFI—Lipper International Large-Cap Core Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	LIMCCFI—Lipper International Multi-Cap Core Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	EAFE—Morgan Stanley Capital International Europe, Australasia, Far East Index	Europe, Australasia and Far East Index (EAFE) is a standard unmanaged foreign securities index representing major non-U.S. stock markets, as monitored by Morgan Stanley Capital international.(6)
Emerging Markets Equity Fund*(5)	LEMFI—Lipper Emerging Markets Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	EMI—Morgan Stanley Capital International Emerging Markets Index	The MSCI Emerging Markets Index (EMI) is a market capitalization weighted index comprised of over 800 companies representative of the market structure of the emerging countries in Europe, Latin America, Africa, Middle East and Asia, as monitored by Morgan Stanley Capital International.(7)

19

Explanation of the Indexes and Notes in the Commentary (continued)

Fund/Benchmark Comparisons per Fund		Explanation
Ultra Short Tax-Free Fund*(4)(8)	LSMDFI—Lipper Short Municipal Debt Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	B1MBI—Barclays Capital 1 Year Municipal Bond Index	The B1MBI is the 1 year component of the Barclays Capital Municipal Bond Index, which is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. To qualify for inclusion, a bond or security must have outstanding par value of at least $7 million, issued as part of a transaction of at least $75 million, fixed rate, dated-date after December 31, 1990 and must have at least one year from final maturity.(6)
	BI—Blended Index (50% Barclays Capital 1 Year Municipal Bond Index and 50% iMoneyNet Money Market Fund Tax-Free National Retail Index)	The BI consists of 50% Barclays Capital 1 Year Municipal Bond Index and 50% iMoneyNet Money Market Fund Tax-Free National Retail Index. The Barclays Capital 1 Year Municipal Bond Index is the 1 year component of the Barclays Capital Municipal Bond Index, which is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. The iMoneyNet Money Market Fund Tax-Free National Retail Index is an average of money funds with investment objectives similar to that of the Fund.(6)
Short-Term Income Fund*(8)	LSTIDI—Lipper Short-Term Investment Grade Debt Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	ML13—Bank of America Merrill Lynch 1-3 Year U.S. Government /Corporate Index	The ML13 is an index tracking short-term U.S. government and corporate securities with maturities between 1 and 2.99 years. The index is produced by Merrill Lynch Pierce Fenner & Smith.(6)
Short-Intermediate Bond Fund*(8)	LSIDF—Lipper Short/Intermediate Investment Grade Debt Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	BIGCI—Barclays Intermediate Government/Credit Index	The BIGCI is an index comprised of government and corporate bonds rated BBB or higher with maturities between 1-10 years.(6)
Intermediate Tax-Free Fund*(4)(8)	LIMDI—Lipper Intermediate Municipal Debt Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	BMB15I—Barclays Capital Municipal Bond 1-15 Year Blend Index	The BMB15I is the 1-15 year Blend component of the Barclays Capital Municipal Bond Index, which is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa and a range of maturities between 1-17 years. To qualify for inclusion, a bond or security must have outstanding par value of at least $7 million, issued as part of a transaction of at least $75 million, fixed rate, dated-date after December 31, 1990 and must have at least one year from final maturity.(6)
Government Income Fund*(8)	LUSMI—Lipper U.S. Mortgage Funds Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	BMI—Barclays U.S. Mortgage-Backed Securities Index	The BMI is an unmanaged index that includes15 and 30 year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corp. (FHLMC) and the Federal National Mortgage Association (FNMA).(6)
Corporate Income Fund*(8)	LIIGDFI—Lipper Intermediate Investment Grade Debt Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	BCCI—Barclays Capital U.S. Credit Index	Barclays Capital U.S. Credit Index (BCCI) represents securities that are SEC registered, taxable and U.S. dollar denominated. The index covers U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity and quality requirements.(6)
Aggregate Bond Fund*(8)	LIIGDFI—Lipper Intermediate Investment Grade Debt Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	BABI—Barclays Aggregate Bond Index	Barclays U.S. Aggregate Bond Index (BABI) is an unmanaged index that covers the U.S. investment-grade fixed-rate bond market, including government and credit securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-based securities. To qualify for inclusion, a bond or security must have at least one year to final maturity, rated investment grade Baa3 or better, dollar denominated, non-convertible, fixed rate and be publicly issued.(6)

20

Explanation of the Indexes and Notes in the Commentary (continued)

Fund/Benchmark Comparisons per Fund		Explanation
Core Plus Bond Fund*(8)	LIIGDFI—Lipper Intermediate Investment Grade Debt Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	BABI—Barclays Aggregate Bond Index	Barclays U.S. Aggregate Bond Index (BABI) is an unmanaged index that covers the U.S. investment-grade fixed-rate bond market, including government and credit securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-based securities. To qualify for inclusion, a bond or security must have at least one year to final maturity, rated investment grade Baa3 or better, dollar denominated, non-convertible, fixed rate and be publicly issued.(6)
Government Money Market Fund*	LUSGMMFI—Lipper U.S. Government Money Market Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	INGMMI—iMoneyNet, Inc. Government Money Market Index	The INGMMI is an average of money funds with investment objectives similar to that of the Fund.
Tax-Free Money Market Fund*	LTEMMFI—Lipper Tax Exempt Money Market Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	IMNTFNR—iMoneyNet, Inc. Fund Report/Tax-Free National Retail	The IMNTFNR is an average of money funds with investment objectives similar to that of the Fund.
Prime Money Market Fund*	LMMFI—Lipper Money Market Fund Index	Lipper indexes are comprised of a certain number of eligible mutual funds designated by Lipper, Inc. as falling into the respective categories indicated.(7)
	MFRA—iMoneyNet, Inc. Money Fund Report Averages	The MFRA is an average of money funds with investment objectives similar to that of the Fund.

* The Fund’s performance assumes the reinvestment of all dividends and distributions. Performance returns for all benchmark comparisons assume dividends and distributions were reinvested for the entire period. All indexes are unmanaged and are not available for direct investment.

(1) This graph illustrates the hypothetical investment of $10,000 in the Investor Class shares of the Fund from the lesser of the Fund’s inception date or August 31, 2000 to August 31, 2010. The inception dates of the Emerging Markets Equity Fund, Ultra Short Tax-Free Fund, Corporate Income Fund, Aggregate Bond Fund, Core Plus Bond Fund, Government Money Market Fund, and Tax-Free Fund are December 22, 2008, September 30, 2009, December 22, 2008, May 31, 2007, December 22, 2008, May 17, 2004, and September 22, 2004, respectively.

(2) Portfolio composition will change due to ongoing management of the Fund. The percentages are based on net assets as of August 31, 2010 and may not necessarily reflect adjustments that are routinely made when presenting net assets for formal financial statement processes.

(3) Small-Cap stocks are less liquid and more volatile than large-cap stocks.

(4) Income generated by the Fund may be subject to the federal alternative minimum tax.

(5) International investing involves special risks including currency risk, political risk, increased volatility of foreign securities, and differences in auditing and other financial standards.

(6) Performance returns do not reflect the deduction of sales charges, expenses, or other fees that the Securities and Exchange Commission requires to be reflected in a mutual fund’s performance.

(7) Performance returns do not reflect the deduction of sales charges of component funds, or taxes, but do reflect the deduction of fund expenses.

(8) Investors should be aware that in an environment of rising interest rates, they may expect to see declining bond prices.

21

Expense Example (Unaudited)

For the Six Months Ended August 31, 2010

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 August 31, 2010 (3/1/10-8/31/10).

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 3/1/10		Ending account value 8/31/10		Annualized Expense Ratio(1)			Expenses paid during period 3/1/10- 8/31/10(1)		Beginning account value 3/1/10		Ending account value 8/31/10		Annualized Expense Ratio(1)			Expenses paid during period 3/1/10- 8/31/10(1)		Beginning account value 3/1/10		Ending account value 8/31/10		Annualized Expense Ratio(1)			Expenses paid during period 3/1/10- 8/31/10(1)
Large-Cap Value Fund
Actual	$	1,000.00	$	920.90		1.24	%	$	6.02	$	1,000.00	$	920.90		1.24	%	$	6.02	$	1,000.00	$	922.20		0.99	%	$	4.81
Hypothetical (5% return before expenses)		1,000.00		1,018.73		1.24			6.33		1,000.00		1,018.73		1.24			6.33		1,000.00		1,019.99		0.99			5.06
Large-Cap Growth Fund
Actual		1,000.00		922.60		1.24			6.03		1,000.00		922.60		1.24			6.03		1,000.00		923.80		0.99			4.82
Hypothetical (5% return before expenses)		1,000.00		1,018.73		1.24			6.33		1,000.00		1,018.73		1.24			6.33		1,000.00		1,019.99		0.99			5.06
Mid-Cap Value Fund
Actual		1,000.00		958.10		1.24			6.14		1,000.00		958.10		1.24			6.14		1,000.00		959.00		0.99			4.91
Hypothetical (5% return before expenses)		1,000.00		1,018.73		1.24			6.33		1,000.00		1,018.73		1.24			6.33		1,000.00		1,019.99		0.99			5.06
Mid-Cap Growth Fund
Actual		1,000.00		969.10		1.24			6.17		1,000.00		969.10		1.24			6.17		1,000.00		969.90		0.99			4.93
Hypothetical (5% return before expenses)		1,000.00		1,018.73		1.24			6.33		1,000.00		1,018.73		1.24			6.33		1,000.00		1,019.99		0.99			5.06
Small-Cap Growth Fund
Actual		1,000.00		953.10		1.44			7.10		1,000.00		953.10		1.44			7.10		1,000.00		954.70		1.19			5.87
Hypothetical (5% return before expenses)		1,000.00		1,017.73		1.44			7.33		1,000.00		1,017.73		1.44			7.33		1,000.00		1,018.99		1.19			6.06

22

Expense Example (Unaudited) (continued)

	Advisor									Investor									Institutional
Fund	Beginning account value 3/1/10		Ending account value 8/31/10		Annualized Expense Ratio(1)			Expenses paid during period 3/1/10- 8/31/10(1)		Beginning account value 3/1/10		Ending account value 8/31/10		Annualized Expense Ratio(1)			Expenses paid during period 3/1/10- 8/31/10(1)		Beginning account value 3/1/10		Ending account value 8/31/10		Annualized Expense Ratio(1)			Expenses paid during period 3/1/10- 8/31/10(1)
International Stock Fund
Actual	$	1,000.00	$	980.30		1.45	%	$	7.24	$	1,000.00	$	980.30		1.45	%	$	7.24	$	1,000.00	$	981.70		1.20	%	$	5.99
Hypothetical (5% return before expenses)		1,000.00		1,017.69		1.45			7.37		1,000.00		1,017.69		1.45			7.37		1,000.00		1,018.95		1.20			6.11
Emerging Markets Equity Fund
Actual		1,000.00		1,054.10		1.50			7.77		1,000.00		1,054.10		1.50			7.77		1,000.00		1,056.00		1.25			6.48
Hypothetical (5% return before expenses)		1,000.00		1,017.44		1.50			7.63		1,000.00		1,017.44		1.50			7.63		1,000.00		1,018.70		1.25			6.36
Ultra Short Tax-Free Fund
Actual		—		—		—			—		1,000.00		1,009.40		0.55			2.77		1,000.00		1,011.60		0.30			1.51
Hypothetical (5% return before expenses)		—		—		—			—		1,000.00		1,022.24		0.55			2.79		1,000.00		1,023.50		0.30			1.52
Short-Term Income Fund
Actual		1,000.00		1,027.60		0.60			3.06		1,000.00		1,027.50		0.60			3.06		1,000.00		1,028.80		0.35			1.79
Hypothetical (5% return before expenses)		1,000.00		1,021.98		0.60			3.05		1,000.00		1,021.98		0.60			3.05		1,000.00		1,023.24		0.35			1.78
Short-Intermediate Bond Fund
Actual		1,000.00		1,057.70		0.80			4.15		1,000.00		1,057.70		0.80			4.15		1,000.00		1,060.20		0.55			2.86
Hypothetical (5% return before expenses)		1,000.00		1,020.97		0.80			4.08		1,000.00		1,020.97		0.80			4.07		1,000.00		1,022.23		0.55			2.80
Intermediate Tax-Free Fund
Actual		—		—		—			—		1,000.00		1,049.60		0.55			2.83		—		—		—			—
Hypothetical (5% return before expenses)		—		—		—			—		1,000.00		1,022.24		0.55			2.79		—		—		—			—
Government Income Fund
Actual		1,000.00		1,046.70		0.80			4.13		1,000.00		1,046.70		0.80			4.13		1,000.00		1,048.10		0.55			2.84
Hypothetical (5% return before expenses)		1,000.00		1,020.97		0.80			4.08		1,000.00		1,020.97		0.80			4.08		1,000.00		1,022.23		0.55			2.80
Corporate Income Fund
Actual		1,000.00		1,071.80		0.80			4.17		1,000.00		1,071.70		0.80			4.17		1,000.00		1,073.10		0.55			2.86
Hypothetical (5% return before expenses)		1,000.00		1,020.98		0.80			4.07		1,000.00		1,020.98		0.80			4.06		1,000.00		1,022.24		0.55			2.79
Aggregate Bond Fund
Actual		1,000.00		1,061.60		0.80			4.15		1,000.00		1,061.60		0.80			4.15		1,000.00		1,061.90		0.55			2.86
Hypothetical (5% return before expenses)		1,000.00		1,020.97		0.80			4.07		1,000.00		1,020.97		0.80			4.07		1,000.00		1,022.23		0.55			2.80
Core Plus Bond Fund
Actual		—		—		—			—		1,000.00		1,060.90		0.80			4.15		1,000.00		1,062.30		0.55			2.86
Hypothetical (5% return before expenses)		—		—		—			—		1,000.00		1,020.97		0.80			4.07		1,000.00		1,022.23		0.55			2.80
Government Money Market Fund
Actual		—		—		—			—		1,000.00		1,000.10		0.26			1.30		1,000.00		1,000.40		0.20			1.01
Hypothetical (5% return before expenses)		—		—		—			—		1,000.00		1,023.70		0.26			1.32		1,000.00		1,023.99		0.20			1.02
Tax-Free Money Market Fund
Actual		—		—		—			—		1,000.00		1,001.00		0.45			2.27		1,000.00		1,002.30		0.20			1.01
Hypothetical (5% return before expenses)		—		—		—			—		1,000.00		1,022.73		0.45			2.29		1,000.00		1,023.99		0.20			1.02
Prime Money Market Fund
Actual		1,000.00		1,000.10		0.41			2.05		1,000.00		1,000.10		0.40			2.00		1,000.00		1,001.10		0.20			1.01
Hypothetical (5% return before expenses)		1,000.00		1,022.95		0.41			2.08		1,000.00		1,023.00		0.40			2.03		1,000.00		1,023.99		0.20			1.02

(1) Expenses are equal to the Funds’ annualized expense ratios for the period March 1, 2010 through August 31, 2010, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

23

August 31, 2010

Schedule of Investments

Large-Cap Value Fund

Description	Shares	Value
Common Stocks — 96.8%
Consumer Discretionary — 8.0%
Apparel Retail — 0.7%
Limited Brands, Inc.	48,090	$    1,134,924
Apparel, Accessories & Luxury Goods — 0.5%
Coach, Inc.	23,570	844,749
Auto Parts & Equipment — 0.2%
Johnson Controls, Inc.	16,320	432,970
Automobile Manufacturers — 0.8%
Ford Motor Co. (1)(2)	114,430	1,291,915
Cable & Satellite — 2.0%
DISH Network Corp., Class A	87,900	1,577,805
Time Warner Cable, Inc.	34,500	1,780,545
		3,358,350
Department Stores — 0.5%
Macy’s, Inc.	43,690	849,334
General Merchandise Stores — 0.7%
Target Corp.	22,610	1,156,727
Household Appliances — 0.6%
Whirlpool Corp.	14,275	1,058,634
Movies & Entertainment — 2.0%
News Corp., Class A	143,600	1,805,052
Time Warner, Inc.	50,620	1,517,587
		3,322,639
Total Consumer Discretionary		13,450,242
Consumer Staples — 10.6%
Agricultural Products — 1.1%
Archer-Daniels-Midland Co. (1)	60,060	1,848,647
Brewers — 0.7%
Molson Coors Brewing Co., Class B	25,830	1,125,155
Drug Retail — 0.9%
CVS Caremark Corp. (1)	58,330	1,574,910
Household Products — 1.7%
Kimberly-Clark Corp.	26,200	1,687,280
Procter & Gamble Co. (1)	21,200	1,265,004
		2,952,284
Hypermarkets & Super Centers — 1.0%
Wal-Mart Stores, Inc.	33,180	1,663,645
Packaged Foods & Meats — 1.6%
ConAgra Foods, Inc.	81,430	1,758,074
Sara Lee Corp.	62,400	901,056
		2,659,130
Personal Products — 0.5%
Estee Lauder Cos., Inc., Class A (1)	14,160	793,951
Soft Drinks — 0.7%
Coca-Cola Co.	21,090	1,179,353
Tobacco — 2.4%
Altria Group, Inc.	77,020	1,719,087
Philip Morris International, Inc.	27,805	1,430,289
Reynolds American, Inc.	16,510	900,455
		4,049,831
Total Consumer Staples		17,846,906

Description	Shares	Value
Common Stocks (continued)
Energy — 11.7%
Integrated Oil & Gas — 7.1%
Chevron Corp. (1)	73,000	$    5,413,680
ConocoPhillips	79,660	4,176,574
Marathon Oil Corp.	78,790	2,402,307
		11,992,561
Oil & Gas-Equipment & Services — 1.5%
Halliburton Co.	58,450	1,648,874
National Oilwell Varco, Inc.	23,040	866,074
		2,514,948
Oil & Gas-Exploration & Production — 2.6%
Anadarko Petroleum Corp.	38,525	1,771,765
Apache Corp. (1)	17,640	1,584,954
Cimarex Energy Co.	16,285	1,065,365
		4,422,084
Oil & Gas-Storage & Transportation — 0.5%
Williams Cos., Inc.	41,480	752,032
Total Energy		19,681,625
Financials — 24.0%
Asset Management & Custody Banks — 1.8%
Ameriprise Financial, Inc.	67,840	2,956,467
Consumer Finance — 2.6%
Capital One Financial Corp. (1)	47,220	1,787,749
Discover Financial Services	174,920	2,538,089
		4,325,838
Diversified Banks — 3.0%
U.S. Bancorp	87,275	1,815,320
Wells Fargo & Co.	138,295	3,256,847
		5,072,167
Investment Banking & Brokerage — 2.0%
Goldman Sachs Group, Inc.	16,020	2,193,779
Morgan Stanley	45,655	1,127,222
		3,321,001
Life & Health Insurance — 1.9%
Prudential Financial, Inc.	61,480	3,109,044
Other Diversified Financial Services — 5.4%
Bank of America Corp.	304,600	3,792,270
JPMorgan Chase & Co.	144,280	5,246,021
		9,038,291
Property & Casualty Insurance — 3.7%
ACE Ltd. (1)	39,920	2,134,522
Berkshire Hathaway, Inc., Class B (1)(2)	38,540	3,036,181
Travelers Cos., Inc.	22,850	1,119,193
		6,289,896
Regional Banks — 1.8%
Fifth Third Bancorp	65,890	728,085
PNC Financial Services Group, Inc. (1)	43,365	2,209,880
		2,937,965
Residential REIT’s — 0.8%
Apartment Investment & Management Co., Class A	63,480	1,297,531
Specialized Finance — 0.5%
CME Group, Inc.	3,720	922,858

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

24

Marshall Funds

Large-Cap Value Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Financials (continued)
Specialized REIT’s — 0.5%
Public Storage	9,240	$       905,705
Total Financials		40,176,763
Healthcare — 13.0%
Biotechnology — 1.1%
Amgen, Inc. (2)	24,835	1,267,578
Gilead Sciences, Inc. (2)	20,330	647,714
		1,915,292
Healthcare Distributors — 2.2%
AmerisourceBergen Corp. (1)	82,715	2,256,465
McKesson Corp.	23,790	1,381,010
		3,637,475
Healthcare Facilities — 0.6%
Community Health Systems, Inc. (1)(2)	41,460	1,080,862
Healthcare Services — 0.9%
Medco Health Solutions, Inc. (1)(2)	32,990	1,434,405
Life Sciences Tools & Services — 0.7%
Thermo Fisher Scientific, Inc. (2)	26,060	1,097,647
Managed Healthcare — 1.5%
Humana, Inc. (1)(2)	26,395	1,261,417
UnitedHealth Group, Inc.	40,425	1,282,281
		2,543,698
Pharmaceuticals — 6.0%
Bristol-Myers Squibb Co. (1)	112,670	2,938,434
Eli Lilly & Co. (1)	69,850	2,344,166
Forest Laboratories, Inc. (2)	57,565	1,570,949
Johnson & Johnson	55,360	3,156,627
		10,010,176
Total Healthcare		21,719,555
Industrials — 10.0%
Aerospace & Defense — 3.7%
General Dynamics Corp.	49,275	2,752,994
Honeywell International, Inc.	25,400	992,886
Northrop Grumman Corp.	18,225	986,337
Raytheon Co.	34,100	1,497,672
		6,229,889
Construction & Farm Machinery & Heavy Trucks — 0.5%
Joy Global, Inc.	13,870	786,984
Electrical Components & Equipment — 1.0%
Emerson Electric Co.	36,115	1,684,765
Environmental & Facilities Services — 0.8%
Waste Management, Inc.	39,800	1,316,982
Industrial Conglomerates — 2.0%
General Electric Co.	232,130	3,361,242
Industrial Machinery — 1.0%
Crane Co.	48,100	1,630,590
Railroads — 1.0%
CSX Corp.	33,980	1,695,262
Total Industrials		16,705,714

Description	Shares or Contracts	Value
Common Stocks (continued)
Information Technology — 5.7%
Communications Equipment — 1.0%
Harris Corp.	38,380	$    1,614,647
Computer Hardware — 1.0%
Apple, Inc. (2)	6,990	1,701,156
Computer Storage & Peripherals — 0.7%
Western Digital Corp. (2)	52,770	1,274,395
Electronic Manufacturing Services — 0.3%
Jabil Circuit, Inc.	57,590	590,298
Semiconductors — 1.3%
Intel Corp.	64,540	1,143,649
Marvell Technology Group, Ltd. (2)	61,580	981,585
		2,125,234
Systems Software — 1.4%
Microsoft Corp.	97,710	2,294,231
Total Information Technology		9,599,961
Materials — 2.8%
Diversified Chemicals — 0.8%
Ashland, Inc.	30,395	1,412,152
Gold — 1.0%
Newmont Mining Corp.	25,880	1,586,962
Paper Products — 0.6%
International Paper Co.	49,925	1,021,465
Steel — 0.4%
Reliance Steel & Aluminum Co.	18,680	695,830
Total Materials		4,716,409
Telecommunication Services — 4.0%
Integrated Telecommunication Services — 4.0%
AT&T, Inc.	112,295	3,035,334
Qwest Communications International, Inc.	452,110	2,554,421
Verizon Communications, Inc. (1)	36,310	1,071,508
Total Telecommunication Services		6,661,263
Utilities — 7.0%
Electric Utilities — 3.2%
Edison International	57,690	1,947,037
Entergy Corp.	20,370	1,605,971
Pinnacle West Capital Corp. (1)	46,380	1,848,243
		5,401,251
Gas Utilities — 2.7%
ONEOK, Inc.	54,555	2,340,955
UGI Corp.	81,200	2,241,120
		4,582,075
Multi-Utilities — 1.1%
CenterPoint Energy, Inc.	123,760	1,830,411
Total Utilities		11,813,737
Total Common Stocks (identified cost $153,434,083)		162,372,175
Purchased Call Options — 0.1%
Bank of America Corp., Exercise Price: $15.00, 1/22/2011 (2)	1,961	83,342

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

25

August 31, 2010

Schedule of Investments

Large-Cap Value Fund (continued)

Description	Contracts or Principal Amount	Value
Purchased Call Options (continued)
Baxter International, Inc., Exercise Price: $45.00, 1/22/2011 (2)	220	$         40,700
Baxter International, Inc., Exercise Price: $50.00, 1/22/2011 (2)	220	11,000
CME Group, Inc., Exercise Price: $330.00, 1/22/2011 (2)	13	2,600
Halliburton Co., Exercise Price: $30.00, 1/22/2011 (2)	338	76,557
McKesson Corp., Exercise Price: $70.00, 1/22/2011 (2)	180	13,050
Total Purchased Call Options (identified cost $801,473)		227,249
Short-Term Investments — 18.8%
Collateral Pool Investment for Securities on Loan — 16.6%
(See Note 2 of the Financial Statements)		27,884,233
Repurchase Agreement — 2.2%
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $3,638,489 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 8/24/2015, with a market value of $3,712,159 (at amortized cost)	$3,638,466	3,638,466
Total Short-Term Investments (identified cost $31,522,699)		31,522,699
Total Investments — 115.7% (identified cost $185,758,255)		194,122,123
Other Assets and Liabilities — (15.7)%		(26,344,127	)
Total Net Assets — 100.0%		$167,777,996

Large-Cap Growth Fund

Description	Shares	Value
Common Stocks — 94.4%
Consumer Discretionary — 12.9%
Apparel, Accessories & Luxury Goods — 1.0%
Coach, Inc.	44,000	$    1,576,960
Auto Parts & Equipment — 1.3%
Johnson Controls, Inc.	76,000	2,016,280
Casinos & Gaming — 1.3%
International Game Technology	145,000	2,117,000
Computer & Electronics Retail — 1.7%
Best Buy Co., Inc. (1)	86,500	2,715,235
Department Stores — 1.9%
Kohl’s Corp. (1)(2)	62,000	2,912,760

Description	Shares	Value
Common Stocks (continued)
Consumer Discretionary (continued)
Home Improvement Retail — 1.2%
Lowe’s Cos., Inc. (1)	94,000	$    1,908,200
Homefurnishing Retail — 1.0%
Bed Bath & Beyond, Inc. (2)	43,500	1,564,695
Internet Retail — 1.8%
Amazon.com, Inc. (1)(2)	22,500	2,808,675
Specialty Stores — 1.7%
Staples, Inc.	150,000	2,665,500
Total Consumer Discretionary		20,285,305
Consumer Staples — 9.5%
Hypermarkets & Super Centers — 1.5%
Costco Wholesale Corp. (1)	40,000	2,262,000
Soft Drinks — 4.1%
Coca-Cola Co.	65,500	3,662,760
PepsiCo, Inc.	44,000	2,823,920
		6,486,680
Tobacco — 3.9%
Altria Group, Inc.	95,000	2,120,400
Philip Morris International, Inc.	76,500	3,935,160
		6,055,560
Total Consumer Staples		14,804,240
Energy — 7.4%
Coal & Consumable Fuels — 0.7%
Consol Energy, Inc. (1)	35,000	1,127,000
Oil & Gas-Equipment & Services — 6.2%
Dresser-Rand Group, Inc. (2)	48,788	1,732,950
Halliburton Co.	86,500	2,440,165
McDermott International, Inc. (1)(2)	125,000	1,602,500
National Oilwell Varco, Inc.	65,000	2,443,350
Schlumberger, Ltd.	27,500	1,466,575
		9,685,540
Oil & Gas-Exploration & Production — 0.5%
Brigham Exploration Co. (1)(2)	50,000	766,000
Total Energy		11,578,540
Financials — 5.8%
Asset Management & Custody Banks — 2.5%
Ameriprise Financial, Inc.	48,500	2,113,630
Invesco Ltd.	99,800	1,806,380
		3,920,010
Diversified Banks — 1.0%
U.S. Bancorp	72,500	1,508,000
Investment Banking & Brokerage — 1.0%
Goldman Sachs Group, Inc.	12,000	1,643,280
Specialized Finance — 1.3%
IntercontinentalExchange, Inc. (2)	21,000	2,006,760
Total Financials		9,078,050
Healthcare — 8.9%
Biotechnology — 2.0%
Gilead Sciences, Inc. (1)(2)	98,300	3,131,838
Healthcare Services — 2.6%
Laboratory Corporation of America Holdings (1)(2)	22,600	1,641,212

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

26

Marshall Funds

Large-Cap Growth Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Healthcare (continued)
Healthcare Services (continued)
Medco Health Solutions, Inc. (1)(2)	55,200	$  2,400,096
		4,041,308
Pharmaceuticals — 4.3%
Abbott Laboratories	55,000	2,713,700
Allergan, Inc. (1)	25,400	1,560,068
Merck & Co., Inc.	72,000	2,531,520
		6,805,288
Total Healthcare		13,978,434
Industrials — 12.6%
Aerospace & Defense — 1.7%
Boeing Co.	44,000	2,689,720
Construction & Engineering — 1.1%
Fluor Corp.	40,500	1,808,730
Construction & Farm Machinery & Heavy Trucks — 1.9%
Caterpillar, Inc. (1)	46,000	2,997,360
Electrical Components & Equipment — 1.8%
Emerson Electric Co.	60,000	2,799,000
Heavy Electrical Equipment — 1.0%
Babcock & Wilcox Co. (2)	70,400	1,576,960
Human Resource & Employment Services — 1.0%
Manpower, Inc.	37,000	1,572,500
Industrial Conglomerates — 1.5%
General Electric Co.	164,500	2,381,960
Industrial Machinery — 1.6%
Illinois Tool Works, Inc.	59,900	2,471,474
Trucking — 1.0%
Con-way, Inc. (1)	58,000	1,520,180
Total Industrials		19,817,884
Information Technology — 31.9%
Application Software — 1.7%
Adobe Systems, Inc. (1)(2)	95,000	2,637,200
Communications Equipment — 4.4%
Brocade Communications Systems, Inc. (1)(2)	335,000	1,681,700
Cisco Systems, Inc. (2)	259,500	5,202,975
		6,884,675
Computer Hardware — 8.0%
Apple, Inc. (2)	23,100	5,621,847
Dell, Inc. (1)(2)	260,000	3,060,200
Hewlett-Packard Co.	99,000	3,809,520
		12,491,567
Consulting & Other Services — 3.4%
International Business Machines Corp.	43,000	5,298,890
Data Processing & Outsourced Services — 4.3%
MasterCard, Inc., Class A (1)	20,000	3,967,200
Visa, Inc. (1)	40,400	2,786,792
		6,753,992

Description	Shares or Principal Amount	Value
Common Stocks (continued)
Information Technology (continued)
Internet Software & Services — 5.1%
eBay, Inc. (2)	77,000	$    1,789,480
Google, Inc., Class A (2)	13,700	6,165,274
		7,954,754
Semiconductors — 1.0%
SunPower Corp., Class B (1)(2)	155,000	1,602,700
Systems Software — 4.0%
Microsoft Corp.	163,000	3,827,240
Oracle Corp. (1)	115,000	2,516,200
		6,343,440
Total Information Technology		49,967,218
Materials — 5.4%
Diversified Chemicals — 1.2%
Dow Chemical Co. (1)	75,500	1,839,935
Diversified Metals & Mining — 1.3%
Freeport-McMoRan Copper & Gold, Inc. (1)	28,500	2,051,430
Specialty Chemicals — 1.1%
Albemarle Corp.	41,500	1,663,735
Steel — 1.8%
Nucor Corp. (1)	31,500	1,158,570
Steel Dynamics, Inc. (1)	128,200	1,756,340
		2,914,910
Total Materials		8,470,010
Total Common Stocks (identified cost $148,968,980)		147,979,681
Short-Term Investments — 28.4%
Collateral Pool Investment for Securities on Loan — 22.4%
(See Note 2 of the Financial Statements)		35,215,359
Repurchase Agreement — 6.0%
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $9,416,604 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 8/24/2015, with a market value of $9,605,639 (at amortized cost)	$9,416,544	9,416,544
Total Short-Term Investments (identified cost $44,631,903)		44,631,903
Total Investments — 122.8% (identified cost $193,600,883)		192,611,584
Other Assets and Liabilities — (22.8)%		(35,795,260	)
Total Net Assets — 100.0%		$156,816,324

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

27

August 31, 2010

Schedule of Investments

Mid-Cap Value Fund

Description	Shares	Value
Common Stocks — 97.1%
Consumer Discretionary — 12.6%
Advertising — 1.4%
Interpublic Group of Cos., Inc. (1)(2)	372,400	$    3,176,572
Apparel Retail — 1.3%
Limited Brands, Inc.	120,800	2,850,880
Cable & Satellite — 2.4%
DIRECTV Group, Inc., Class A (1)(2)	64,300	2,438,256
Liberty Global, Inc. (1)(2)	106,500	2,930,880
		5,369,136
Catalog Retail — 1.4%
Liberty Media Corp. —Interactive (2)	307,100	3,239,905
Department Stores — 1.4%
Kohl’s Corp. (1)(2)	65,200	3,063,096
Household Appliances — 1.2%
Whirlpool Corp. (1)	35,900	2,662,344
Internet Retail — 1.4%
Expedia, Inc. (1)	140,500	3,211,830
Leisure Products — 1.2%
Mattel, Inc.	132,000	2,770,680
Specialty Stores — 0.9%
Staples, Inc. (1)	120,600	2,143,062
Total Consumer Discretionary		28,487,505
Consumer Staples — 4.7%
Food Retail — 2.5%
Kroger Co.	124,400	2,454,412
Safeway, Inc.	167,300	3,145,240
		5,599,652
Packaged Foods & Meats — 1.2%
ConAgra Foods, Inc.	128,000	2,763,520
Tobacco — 1.0%
Lorillard, Inc.	30,700	2,333,507
Total Consumer Staples		10,696,679
Energy — 10.3%
Oil & Gas-Drilling — 3.1%
Helmerich & Payne, Inc. (1)	83,200	3,081,728
Noble Corp.	126,100	3,924,232
		7,005,960
Oil & Gas-Equipment & Services — 1.6%
Oil States International, Inc. (1)(2)	47,100	1,941,933
Tidewater, Inc.	44,300	1,775,544
		3,717,477
Oil & Gas-Exploration & Production — 5.6%
EQT Corp. (1)	110,900	3,615,340
Noble Energy, Inc. (1)	40,900	2,854,002
Plains Exploration & Production Co. (1)(2)	161,100	3,847,068
QEP Resources, Inc.	79,600	2,310,788
		12,627,198
Total Energy		23,350,635

Description	Shares	Value
Common Stocks (continued)
Financials — 21.0%
Asset Management & Custody Banks — 4.2%
Affiliated Managers Group, Inc. (1)(2)	47,900	$    3,075,659
Ameriprise Financial, Inc.	85,500	3,726,090
Invesco Ltd. (1)	157,600	2,852,560
		9,654,309
Consumer Finance — 1.8%
Discover Financial Services	280,200	4,065,702
Diversified Banks — 1.3%
Comerica, Inc.	84,700	2,914,527
Life & Health Insurance — 2.8%
Lincoln National Corp.	141,600	3,307,776
Principal Financial Group, Inc. (1)	128,900	2,971,145
		6,278,921
Office REIT’s — 1.3%
Mack-Cali Realty Corp.	99,600	3,072,660
Property & Casualty Insurance — 2.1%
Axis Capital Holdings, Ltd.	73,700	2,275,856
Hanover Insurance Group, Inc. (1)	55,900	2,424,942
		4,700,798
Regional Banks — 3.4%
Associated Banc-Corp. (1)	213,000	2,568,780
Fifth Third Bancorp (1)	234,410	2,590,230
Popular, Inc. (1)(2)	973,100	2,491,136
		7,650,146
Reinsurance — 3.0%
PartnerRe Ltd.	46,300	3,447,035
Reinsurance Group of America, Inc.	74,700	3,267,378
		6,714,413
Specialized REIT’s — 1.1%
Sovran Self Storage, Inc. (1)	67,800	2,560,806
Total Financials		47,612,282
Healthcare — 7.9%
Healthcare Distributors — 1.7%
AmerisourceBergen Corp. (1)	141,600	3,862,848
Healthcare Facilities — 1.4%
Community Health Systems, Inc. (1)(2)	124,300	3,240,501
Healthcare Services — 1.7%
DaVita, Inc. (2)	61,400	3,967,668
Life Sciences Tools & Services — 1.6%
Thermo Fisher Scientific, Inc. (2)	86,500	3,643,380
Managed Healthcare — 1.5%
CIGNA Corp.	102,900	3,315,438
Total Healthcare		18,029,835
Industrials — 12.0%
Aerospace & Defense — 1.2%
L-3 Communications Holdings, Inc. (1)	41,900	2,790,540
Construction & Engineering — 1.7%
Jacobs Engineering Group, Inc. (1)(2)	109,600	3,800,928
Diversified Support Services — 1.3%
Cintas Corp. (1)	114,450	2,917,331

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

28

Marshall Funds

Mid-Cap Value Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Industrials (continued)
Electrical Components & Equipment — 1.5%
Thomas & Betts Corp. (1)(2)	93,100	$    3,440,045
Environmental & Facilities Services — 1.4%
Republic Services, Inc. (1)	109,000	3,207,870
Human Resource & Employment Services — 1.3%
Manpower, Inc. (1)	71,100	3,021,750
Industrial Conglomerates — 1.3%
Carlisle Companies, Inc. (1)	100,400	2,816,220
Industrial Machinery — 1.3%
Eaton Corp.	43,300	3,008,484
Marine — 1.0%
Diana Shipping, Inc. (2)	194,700	2,314,983
Total Industrials		27,318,151
Information Technology — 12.4%
Application Software — 1.3%
Synopsys, Inc. (1)(2)	128,900	2,950,521
Computer Storage & Peripherals — 0.8%
Lexmark International, Inc., Class A (1)(2)	54,000	1,889,460
Consulting & Other Services — 1.4%
Amdocs, Ltd. (2)	122,600	3,215,798
Data Processing & Outsourced Services — 3.0%
Computer Sciences Corp.	82,900	3,300,249
Western Union Co.	219,700	3,444,896
		6,745,145
Office Electronics — 1.5%
Xerox Corp. (1)	395,200	3,335,488
Systems Software — 1.5%
Check Point Software Technologies, Ltd. (1)(2)	99,200	3,461,088
Technology Distributors — 2.9%
Avnet, Inc. (2)	122,800	2,812,120
Ingram Micro, Inc. (1)(2)	245,600	3,698,736
		6,510,856
Total Information Technology		28,108,356
Materials — 7.5%
Diversified Chemicals — 1.3%
PPG Industries, Inc.	44,130	2,905,078
Fertilizers & Agricultural Chemicals — 1.6%
CF Industries Holdings, Inc. (1)	40,000	3,700,000
Paper Packaging — 1.4%
Sealed Air Corp.	160,900	3,300,059
Paper Products — 1.4%
MeadWestvaco Corp.	142,470	3,100,147
Steel — 1.8%
Reliance Steel & Aluminum Co.	109,100	4,063,975
Total Materials		17,069,259
Telecommunication Services — 2.2%
Integrated Telecommunication Services — 2.2%
Qwest Communications International, Inc.	868,850	4,909,003

Description	Shares or Principal Amount	Value
Common Stocks (continued)
Utilities — 6.5%
Electric Utilities — 1.7%
Edison International	110,700	$    3,736,125
Multi-Utilities — 4.8%
CMS Energy Corp. (1)	254,300	4,450,250
Sempra Energy (1)	81,600	4,155,072
Xcel Energy, Inc. (5)	103,200	2,302,392
		10,907,714
Total Utilities		14,643,839
Total Common Stocks (identified cost $209,954,264)		220,225,544
Short-Term Investments — 33.2%
Collateral Pool Investment for Securities on Loan — 28.9%
(See Note 2 of the Financial Statements)		65,478,423
Repurchase Agreement — 4.3%
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $9,648,252 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 8/24/2015, with a market value of $9,841,538 (at amortized cost)	$9,648,190	9,648,190
Total Short-Term Investments (identified cost $75,126,613)		75,126,613
Total Investments — 130.3% (identified cost $285,080,877)		295,352,157
Other Assets and Liabilities — (30.3)%		(68,609,199	)
Total Net Assets — 100.0%		$226,742,958

Mid-Cap Growth Fund

Description	Shares	Value
Common Stocks — 98.4%
Consumer Discretionary — 18.5%
Advertising — 0.9%
Omnicom Group, Inc.	49,800	$    1,743,498
Apparel Retail — 2.3%
Limited Brands, Inc.	104,100	2,456,760
TJX Cos., Inc. (1)	58,500	2,321,865
		4,778,625
Apparel, Accessories & Luxury Goods — 2.2%
Coach, Inc.	69,900	2,505,216
Phillips-Van Heusen Corp.	45,570	2,081,637
		4,586,853
Automotive Retail — 1.3%
O’Reilly Automotive, Inc. (1)(2)	56,300	2,661,301
Broadcasting — 1.2%
Discovery Communications, Inc., Class A (1)(2)	64,500	2,434,875
Department Stores — 1.0%
Kohl’s Corp. (1)(2)	44,300	2,081,214

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

29

August 31, 2010

Schedule of Investments

Mid-Cap Growth Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Consumer Discretionary (continued)
General Merchandise Stores — 2.9%
Big Lots, Inc. (1)(2)	97,200	$    3,038,472
Dollar Tree, Inc. (1)(2)	62,300	2,824,059
		5,862,531
Hotels, Resorts & Cruise Lines — 2.0%
Marriott International, Inc., Class A (1)	83,300	2,666,433
Wyndham Worldwide Corp.	62,700	1,454,013
		4,120,446
Housewares & Specialties — 2.1%
Jarden Corp. (1)	155,400	4,186,476
Specialized Consumer Services — 2.6%
Coinstar, Inc. (1)(2)	120,600	5,246,100
Total Consumer Discretionary		37,701,919
Consumer Staples — 1.9%
Soft Drinks — 1.9%
Heckmann Corp. (1)(2)	943,500	3,774,000
Energy — 10.0%
Oil & Gas-Exploration & Production — 10.0%
Energy XXI (Bermuda), Ltd. (1)(2)	509,505	10,185,005
McMoRan Exploration Co. (1)(2)	719,200	10,205,448
Total Energy		20,390,453
Financials — 4.0%
Asset Management & Custody Banks — 2.7%
Affiliated Managers Group, Inc. (1)(2)	39,300	2,523,453
Ameriprise Financial, Inc.	66,300	2,889,354
Mortgage REIT’s — 1.3%
Annaly Capital Management, Inc. (1)	151,900	2,640,022
Total Financials		8,052,829
Healthcare — 16.0%
Biotechnology — 1.8%
Alexion Pharmaceuticals, Inc. (2)	48,800	2,755,736
Dendreon Corp. (1)(2)	26,400	946,176
		3,701,912
Healthcare Equipment — 1.2%
Edwards Lifesciences Corp. (1)(2)	27,000	1,554,390
NuVasive, Inc. (1)(2)	27,800	815,930
		2,370,320
Healthcare Facilities — 0.8%
Community Health Systems, Inc. (1)(2)	65,600	1,710,192
Healthcare Services — 3.4%
Emergency Medical Services Corp., Class A (2)	53,400	2,565,870
Express Scripts, Inc. (1)(2)	103,200	4,396,320
		6,962,190
Healthcare Technology — 0.7%
Cerner Corp. (1)(2)	20,800	1,515,280
Life Sciences Tools & Services — 2.8%
Life Technologies Corp. (2)	37,000	1,582,490

Description	Shares	Value
Common Stocks (continued)
Healthcare (continued)
Life Sciences Tools & Services (continued)
Mettler-Toledo International, Inc. (2)	21,000	$    2,322,390
Pharmaceutical Product Development, Inc.	79,700	1,830,709
		5,735,589
Managed Healthcare — 1.0%
AMERIGROUP Corp. (1)(2)	52,500	1,937,250
Pharmaceuticals — 4.3%
Mylan, Inc. (1)(2)	92,700	1,590,732
Shire PLC, ADR	39,000	2,523,300
Valeant Pharmaceuticals International (1)(2)	39,100	2,255,679
Watson Pharmaceuticals, Inc. (1)(2)	53,600	2,308,552
		8,678,263
Total Healthcare		32,610,996
Industrials — 19.9%
Aerospace & Defense — 2.4%
Goodrich Corp.	34,000	2,328,320
Triumph Group, Inc.	36,900	2,449,422
		4,777,742
Construction & Farm Machinery & Heavy Trucks — 1.3%
Joy Global, Inc.	46,700	2,649,758
Electrical Components & Equipment — 6.1%
AMETEK, Inc.	70,400	3,026,496
Cooper Industries, PLC	56,000	2,357,040
Regal Beloit Corp.	42,700	2,362,164
Rockwell Automation, Inc. (1)	38,200	1,953,548
Roper Industries, Inc. (1)	46,300	2,689,104
		12,388,352
Industrial Conglomerates — 1.4%
Tyco International, Ltd. (1)	78,700	2,933,936
Industrial Machinery — 5.1%
IDEX Corp.	78,500	2,338,515
Ingersoll-Rand Co., Ltd., Class A	63,600	2,068,908
Middleby Corp. (1)(2)	42,400	2,331,576
Parker Hannifin Corp.	33,900	2,005,524
Timken Co.	49,500	1,619,145
		10,363,668
Railroads — 1.1%
Kansas City Southern (1)(2)	68,900	2,312,973
Trading Companies & Distributors — 1.1%
MSC Industrial Direct Co., Class A	51,600	2,299,812
Trucking — 1.4%
J.B. Hunt Transport Services, Inc. (1)	83,600	2,737,064
Total Industrials		40,463,305
Information Technology — 23.9%
Application Software — 6.9%
Ebix, Inc. (2)	458,100	8,538,984
Informatica Corp. (1)(2)	76,700	2,466,672
Sonic Solutions, Inc. (1)(2)	382,700	3,080,735
		14,086,391
Communications Equipment — 1.0%
JDS Uniphase Corp. (1)(2)	216,500	1,989,635

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

30

Marshall Funds

Mid-Cap Growth Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Information Technology (continued)
Computer Storage & Peripherals — 1.1%
Quantum Corp. (1)(2)	949,100	$    1,366,704
Western Digital Corp. (2)	34,500	833,175
		2,199,879
Consulting & Other Services — 1.5%
Cognizant Technology Solutions Corp., Class A (1)(2)	51,700	2,978,179
Data Processing & Outsourced Services — 2.6%
Alliance Data Systems Corp. (1)(2)	46,200	2,595,978
NeuStar, Inc., Class A (2)	121,200	2,683,368
		5,279,346
Electronic Components — 1.0%
Amphenol Corp., Class A	50,200	2,044,144
Internet Software & Services — 2.1%
Equinix, Inc. (1)(2)	27,600	2,517,396
Rackspace Hosting, Inc. (1)(2)	94,300	1,856,767
		4,374,163
Semiconductor Equipment — 1.5%
ASML Holding N.V. (1)	65,400	1,617,342
Teradyne, Inc. (1)(2)	162,800	1,461,944
		3,079,286
Semiconductors — 3.3%
Cypress Semiconductor Corp. (1)(2)	203,600	2,155,106
Integrated Device Technology, Inc. (1)(2)	202,800	1,038,336
Micron Technology, Inc. (1)(2)	128,300	829,459
Power Integrations, Inc.	44,900	1,229,811
Silicon Laboratories, Inc. (1)(2)	38,300	1,460,762
		6,713,474
Systems Software — 2.9%
Check Point Software Technologies, Ltd. (1)(2)	71,900	2,508,591
Progress Software Corp. (2)	53,400	1,426,314
Rovi Corp. (1)(2)	46,300	2,014,513
		5,949,418
Total Information Technology		48,693,915
Materials — 1.5%
Industrial Gases — 1.5%
Praxair, Inc.	36,300	3,122,889
Telecommunication Services — 2.7%
Wireless Telecommunication Services — 2.7%
American Tower Corp., Class A (2)	56,000	2,624,160
Crown Castle International Corp. (1)(2)	67,800	2,787,936
Total Telecommunication Services		5,412,096
Total Common Stocks (identified cost $175,617,842)		200,222,402
Short-Term Investments — 51.0%
Collateral Pool Investment for Securities on Loan — 48.1%
(See Note 2 of the Financial Statements)		97,837,904

Description	Principal Amount	Value
Short-Term Investments (continued)
Repurchase Agreement — 2.9%
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $5,985,126 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 8/24/2015, with a market value of $6,105,287 (at amortized cost)	$5,985,088	$    5,985,088
Total Short-Term Investments (identified cost $103,822,992)		103,822,992
Total Investments — 149.4% (identified cost $279,440,834)		304,045,394
Other Assets and Liabilities — (49.4)%		(100,517,810	)
Total Net Assets — 100.0%		$203,527,584

Small-Cap Growth Fund

Description	Shares	Value
Common Stocks — 98.6%
Consumer Discretionary — 14.5%
Apparel Retail — 0.8%
Talbots, Inc. (1)(2)	265,100	$    2,645,698
Auto Parts & Equipment — 2.1%
Amerigon, Inc. (1)(2)	533,800	5,519,492
Dana Holding Corp. (2)	186,550	1,914,003
		7,433,495
Automotive Retail — 0.8%
Sonic Automotive, Inc., Class A (1)(2)	332,700	2,931,087
Footwear — 1.4%
Steven Madden, Ltd. (1)(2)	143,600	4,944,148
General Merchandise Stores — 1.7%
Big Lots, Inc. (1)(2)	184,200	5,758,092
Home Furnishings — 0.4%
La-Z-Boy, Inc. (1)(2)	210,400	1,409,680
Homefurnishing Retail — 0.5%
Kirkland’s, Inc. (2)	163,010	1,859,944
Housewares & Specialties — 2.1%
Jarden Corp.	274,200	7,386,948
Restaurants — 2.1%
Biglari Holdings, Inc. (1)(2)	25,400	7,376,160
Specialized Consumer Services — 2.6%
Coinstar, Inc. (1)(2)	209,600	9,117,600
Total Consumer Discretionary		50,862,852
Consumer Staples — 2.4%
Soft Drinks — 2.4%
Heckmann Corp. (1)(2)	2,155,000	8,620,000
Energy — 11.4%
Oil & Gas-Exploration & Production — 11.4%
Energy XXI (Bermuda), Ltd. (1)(2)	878,250	17,556,217
GeoResources, Inc. (2)	124,400	1,879,684
McMoRan Exploration Co. (1)(2)	1,235,500	17,531,745

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

31

August 31, 2010

Schedule of Investments

Small-Cap Growth Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Energy (continued)
Oil & Gas-Exploration & Production (continued)
Rex Energy Corp. (1)(2)	176,100	$    1,991,691
Toreador Resources Corp. (2)	137,800	1,118,936
Total Energy		40,078,273
Financials — 6.1%
Asset Management & Custody Banks — 3.6%
Affiliated Managers Group, Inc. (1)(2)	85,200	5,470,692
Safeguard Scientifics, Inc. (2)	605,000	6,957,500
		12,428,192
Investment Banking & Brokerage — 2.0%
LaBranche & Co., Inc. (1)(2)	1,834,676	7,136,890
Reinsurance — 0.5%
Enstar Group, Ltd. (1)(2)	25,300	1,761,386
Total Financials		21,326,468
Healthcare — 18.0%
Biotechnology — 1.9%
Alexion Pharmaceuticals, Inc. (2)	63,700	3,597,139
United Therapeutics Corp. (1)(2)	66,300	3,064,386
		6,661,525
Healthcare Equipment — 3.7%
DexCom, Inc. (2)	294,300	3,605,175
DynaVox, Inc., Class A (1)(2)	187,000	1,694,220
Thoratec Corp. (1)(2)	94,600	3,046,120
Volcano Corp. (1)(2)	207,500	4,585,750
		12,931,265
Healthcare Facilities — 3.2%
Emeritus Corp. (1)(2)	155,500	2,391,590
Hanger Orthopedic Group, Inc. (2)	256,300	3,344,715
Health Management Associates, Inc., Class A (2)	513,800	3,211,250
Tenet Healthcare Corp. (1)(2)	547,300	2,145,416
		11,092,971
Healthcare Services — 3.7%
Clarient, Inc. (1)(2)	1,511,600	4,988,280
Emergency Medical Services Corp., Class A (2)	97,800	4,699,290
HMS Holdings Corp. (1)(2)	64,400	3,360,392
		13,047,962
Life Sciences Tools & Services — 2.2%
PAREXEL International Corp. (2)	228,200	4,538,898
Pharmaceutical Product Development, Inc.	141,400	3,247,958
		7,786,856
Managed Healthcare — 1.0%
Molina Healthcare, Inc. (1)(2)	142,600	3,616,336
Pharmaceuticals — 2.3%
Eurand N.V. (1)(2)	456,100	4,022,802
Valeant Pharmaceuticals International (1)(2)	68,900	3,974,841
		7,997,643
Total Healthcare		63,134,558

Description	Shares	Value
Common Stocks (continued)
Industrials — 11.5%
Aerospace & Defense — 2.5%
BE Aerospace, Inc. (1)(2)	163,800	$    4,414,410
Triumph Group, Inc.	65,700	4,361,166
		8,775,576
Construction & Engineering — 1.1%
Aecom Technology Corp. (1)(2)	174,600	3,928,500
Industrial Conglomerates — 0.8%
Standex International Corp.	117,300	2,760,069
Industrial Machinery — 2.0%
Altra Holdings, Inc. (2)	227,311	2,925,493
Middleby Corp. (1)(2)	74,800	4,113,252
		7,038,745
Office Services & Supplies — 1.0%
APAC Customer Services, Inc. (2)	719,000	3,645,330
Research & Consulting Services — 1.7%
Acacia Research Corp. (1)(2)	150,700	2,263,514
Dolan Co. (1)(2)	400,800	3,675,336
		5,938,850
Trading Companies & Distributors — 2.4%
MSC Industrial Direct Co., Inc., Class A	89,700	3,997,929
Watsco, Inc. (1)	85,000	4,364,750
		8,362,679
Total Industrials		40,449,749
Information Technology — 30.4%
Application Software — 9.2%
Blackboard, Inc. (1)(2)	105,700	3,497,613
CDC Corp., Class A (1)(2)	482,400	1,702,872
Ebix, Inc. (2)	825,450	15,386,388
Sonic Solutions, Inc. (2)	1,459,800	11,751,390
		32,338,263
Communications Equipment — 2.6%
Aruba Networks, Inc. (1)(2)	122,900	2,257,673
JDS Uniphase Corp. (1)(2)	406,200	3,732,978
Meru Networks, Inc. (1)(2)	255,050	3,264,640
		9,255,291
Computer Storage & Peripherals — 0.7%
Quantum Corp. (1)(2)	1,704,900	2,455,056
Consulting & Other Services — 2.5%
Lionbridge Technologies, Inc. (2)	1,967,300	8,774,158
Data Processing & Outsourced Services — 1.6%
NeuStar, Inc., Class A (2)	249,400	5,521,716
Electronic Manufacturing Services — 0.2%
DDi Corp.	86,953	679,972
Internet Software & Services — 4.1%
Ancestry.com, Inc. (1)(2)	278,600	5,363,050
QuinStreet, Inc. (1)(2)	564,600	6,058,158
Rackspace Hosting, Inc. (1)(2)	151,700	2,986,973
		14,408,181
Semiconductor Equipment — 1.6%
LTX-Credence Corp. (2)	1,302,200	2,812,752
Teradyne, Inc. (1)(2)	297,800	2,674,244
		5,486,996
Semiconductors — 5.2%
Ceva, Inc. (1)(2)	310,800	3,760,680

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

32

Marshall Funds

Small-Cap Growth Fund (continued)

Description	Shares or Principal Amount	Value
Common Stocks (continued)
Information Technology (continued)
Semiconductors (continued)
Cypress Semiconductor Corp. (1)(2)	368,400	$    3,899,514
Integrated Device Technology, Inc. (1)(2)	327,700	1,677,824
Microsemi Corp. (2)	292,200	4,090,800
Mindspeed Technologies, Inc. (1)(2)	412,745	2,641,568
Power Integrations, Inc.	86,800	2,377,452
		18,447,838
Systems Software — 2.7%
Ariba, Inc. (1)(2)	223,000	3,449,810
Progress Software Corp. (2)	101,000	2,697,710
Rovi Corp. (1)(2)	81,200	3,533,012
		9,680,532
Total Information Technology		107,048,003
Materials — 2.8%
Diversified Metals & Mining — 1.3%
Thompson Creek Metals Co., Inc. (1)(2)	540,000	4,633,200
Precious Metals & Minerals — 1.5%
North American Palladium, Ltd. (1)(2)	1,700,800	5,340,512
Total Materials		9,973,712
Telecommunication Services — 1.5%
Wireless Telecommunication Services — 1.5%
SBA Communications Corp. (1)(2)	145,300	5,201,740
Total Common Stocks (identified cost $333,371,659)		346,695,355
Short-Term Investments — 43.5%
Collateral Pool Investment for Securities on Loan — 42.6%
(See Note 2 of the Financial Statements)		149,923,523
Repurchase Agreement — 0.9%
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $3,090,256 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 8/24/2015, with a market value of $3,153,027 (at amortized cost)	$3,090,236	3,090,236
Total Short-Term Investments (identified cost $153,013,759)		153,013,759
Total Investments — 142.1% (identified cost $486,385,418)		499,709,114
Other Assets and Liabilities — (42.1)%		(148,163,712	)
Total Net Assets — 100.0%		$351,545,402

International Stock Fund

Description	Shares	Value
Common Stocks — 94.2%
Australia — 2.9%
BHP Billiton, Ltd.	12,659	$     417,284
Caltex Australia, Ltd.	5,982	59,821
National Australia Bank, Ltd.	4,308	88,922
Newcrest Mining, Ltd.	3,578	118,580
Patties Foods, Ltd.	10,615	12,655
Qantas Airways, Ltd. (2)	14,980	33,452
Rio Tinto, Ltd.	10,411	649,220
Santos, Ltd.	35,200	444,708
		1,824,642
Austria — 0.7%
Erste Group Bank AG	8,879	322,255
OMV AG	4,717	151,951
		474,206
Belgium — 0.2%
Ageas	34,970	88,587
Barco NV (2)	179	8,243
Dexia SA (2)	3,625	15,109
KBC Groep NV (2)	667	27,691
Recticel SA	1,940	17,455
		157,085
Bermuda — 0.5%
Alco Holdings, Ltd.	233,000	85,367
Champion Technology Holdings, Ltd.	356,000	9,107
Dickson Concepts International, Ltd.	18,500	12,129
Dragon Hill Wuling Automobile Holdings, Ltd. (2)	110,000	9,899
Emperor Entertainment Hotel, Ltd.	65,000	11,364
Fairwood, Ltd.	94,000	98,607
Kingmaker Footwear Holdings, Ltd.	188,000	33,353
Sing Tao News Corp., Ltd.	102,000	24,914
Victory City International Holdings, Ltd.	234,000	49,034
		333,774
Brazil — 1.0%
Itau Unibanco Holding SA, ADR	10,685	230,476
Petroleo Brasileiro SA, ADR	2,747	91,612
Vale SA, ADR	11,397	304,870
		626,958
Canada — 2.4%
Calian Technologies, Ltd.	600	9,993
Canadian National Railway Co.	4,076	248,722
Canadian Natural Resources, Ltd.	4,300	138,313
Cardiome Pharma Corp. (2)	5,100	30,992
Centerra Gold, Inc.	13,900	195,136
Cott Corp. (2)	26,400	182,462
EnCana Corp.	200	5,486
FirstService Corp. (2)	713	14,659
QLT, Inc. (2)	6,300	35,980
Research In Motion, Ltd. (2)	10,221	438,072
Toronto-Dominion Bank	3,600	243,578
		1,543,393
Cayman Islands — 0.0%
Luen Thai Holdings, Ltd.	96,000	9,626
China — 0.7%
Industrial & Commercial Bank of China, Ltd., Class H	361,124	262,298
PetroChina Co., Ltd., Class H	159,749	173,123
		435,421

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

33

August 31, 2010

Schedule of Investments

International Stock Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Cyprus — 0.3%
Bank of Cyprus Public Co., Ltd.	38,799	$     206,014
Denmark — 0.9%
A P Moller - Maersk A/S, Class B	52	391,690
Novo Nordisk A/S, Class B	2,340	200,757
		592,447
Finland — 0.4%
Digia PLC	6,702	45,438
Fortum Oyj	7,862	181,030
HKScan Oyj	804	7,978
		234,446
France — 7.3%
Alstom SA	14,605	696,648
BNP Paribas SA	8,196	512,776
Bouygues SA	4,644	188,530
Cegid Group	627	16,082
Cie Generale des Etablissements Michelin, Class B	7,379	548,065
CNP Assurances	12,091	205,319
Credit Agricole SA	24,059	303,211
Groupe Steria SCA	6,991	172,226
LDC	200	16,598
Linedata Services	887	10,352
Peugeot SA (2)	5,129	134,739
Rhodia SA	8,667	162,882
Sanofi-Aventis SA	14,801	849,110
Societe Generale	2,574	131,063
Tessi SA	468	34,321
Total SA	2,640	123,350
Vivendi SA	22,660	528,660
		4,633,932
Germany — 10.1%
ADVA AG Optical Networking (2)	12,104	64,730
Allianz SE	12,071	1,238,138
Amadeus Fire AG	3,068	84,504
Aurubis AG	1,200	47,666
BASF SE	19,338	1,020,311
Bavaria Industriekapital AG	668	11,428
Centrosolar Group AG (2)	4,258	30,708
Daimler AG (2)	14,094	685,134
Deutsche Bank AG	8,992	564,970
Deutsche Lufthansa AG (2)	510	8,050
Deutsche Post AG	29,484	482,177
Deutsche Telekom AG	61,810	813,836
E.ON AG	14,103	396,848
Elmos Semiconductor AG (2)	1,614	16,158
Nemetschek AG	10	312
RWE AG	6,464	423,337
SAP AG	8,779	383,318
Siemens AG	1,935	176,014
		6,447,639
Greece — 0.1%
Public Power Corp. SA	2,438	34,665
Hong Kong — 3.0%
China Mobile, Ltd.	1,000	10,162
CLP Holdings, Ltd.	8,500	64,908
CNOOC, Ltd.	165,202	284,159
Esprit Holdings, Ltd.	101,283	567,693
Hong Kong Ferry (Holdings) Co., Ltd.	19,000	18,295
Hutchison Whampoa, Ltd.	55,427	410,069

Description	Shares	Value
Common Stocks (continued)
Hong Kong (continued)
Li & Fung, Ltd.	89,118	$     447,380
Swire Pacific, Ltd., Class A	4,500	54,321
Vedan International Holdings, Ltd.	288,000	22,214
		1,879,201
India — 2.2%
Bank of Baroda	23,426	400,269
Bharti Airtel, Ltd.	26,447	183,988
Housing Development Finance Corp., Ltd.	19,845	264,072
State Bank of India	4,769	280,321
Sterlite Industries India, Ltd.	45,521	145,882
Union Bank of India	3,059	21,460
Vijaya Bank	5,359	8,983
Zuari Industries, Ltd.	5,002	74,317
		1,379,292
Indonesia — 0.2%
Gajah Tunggal Tbk PT	644,000	122,599
Ireland — 0.5%
Ryanair Holdings PLC, ADR (2)	10,880	308,448
Israel — 0.3%
Teva Pharmaceutical Industries, Ltd., ADR	4,358	220,428
Italy — 1.2%
Enel SpA (1)	135,469	645,491
UniCredit SpA (1)	56,734	133,152
		778,643
Japan — 18.2%
Able, Inc.	1,100	9,506
Amuse, Inc.	600	6,528
Arakawa Chemical Industries, Ltd.	3,798	44,847
Arc Land Sakamoto Co., Ltd.	3,400	38,691
Artnature, Inc.	7,700	69,383
Asahi Glass Co., Ltd.	28,000	273,301
Asahi Industries Co., Ltd.	11	16,760
Bando Chemical Industries, Ltd.	17,000	57,469
Canon, Inc.	12,253	499,542
Daihatsu Diesel Manufacturing Co., Ltd.	9,000	27,854
Daiichi Sankyo Co., Ltd.	2,300	45,967
Daikoku Denki Co., Ltd.	2,300	27,104
Dainichi Co., Ltd.	4,100	24,402
EDION Corp.	2,200	15,162
Faith, Inc.	684	46,409
FamilyMart Co., Ltd. (1)	7,024	254,172
Fanuc, Ltd.	2,330	250,168
First Juken Co., Ltd.	2,900	22,162
FUJI SOFT, Inc.	4,100	62,127
Fujitsu, Ltd.	61,000	422,593
FuKoKu Co., Ltd.	3,400	26,711
Fukuda Denshi Co., Ltd.	1,400	34,746
Happinet Corp.	700	8,391
Hitachi, Ltd. (2)	77,000	311,630
Hokkan Holdings, Ltd.	10,000	25,235
Honda Motor Co., Ltd.	16,590	548,787
Horipro, Inc.	900	7,017
Iida Home Max	3,700	27,747
Inabata & Co., Ltd.	4,100	19,522
Information Services International-Dentsu, Ltd.	4,400	30,639
Itochu-Shokuhin Co., Ltd.	1,300	43,251
Japan Tobacco, Inc.	129	400,313
JSP Corp.	2,900	29,860

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

34

Marshall Funds

International Stock Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Japan (continued)
Jupiter Telecommunications Co., Ltd.	199	$       212,005
Kamei Corp.	9,000	37,496
KAWADA TECHNOLOGIES, Inc.	800	14,360
Kawasumi Laboratories, Inc.	7,000	40,245
Kenedix, Inc. (2)	100	16,308
Konishi Co., Ltd.	1,600	17,636
KRS Corp.	1,700	17,585
Kyodo Printing Co., Ltd.	10,000	23,569
Maezawa Kasei Industries Co., Ltd.	3,600	35,310
Mimasu Semiconductor Industry Co., Ltd.	2,900	28,720
Mitsubishi Corp.	12,693	271,960
Mitsubishi UFJ Financial Group, Inc.	212,429	1,013,975
Mitsui & Co., Ltd.	19,431	252,804
Mizuho Financial Group, Inc.	59,800	91,825
Nagase & Co., Ltd.	4,000	43,328
NEC Networks & System Integration Corp.	1,500	18,694
NIC Corp.	2,900	11,184
Nichireki Co., Ltd.	8,000	30,949
NIFTY Corp.	23	21,601
Nippo Corp.	15,000	98,381
Nippon Antenna Co., Ltd.	1,200	8,670
Nippon Game Card Corp.	26	31,382
Nippon Telegraph & Telephone Corp.	16,500	711,969
NIS Group Co., Ltd. (2)	45,200	10,223
Nissan Motor Co., Ltd. (2)	49,300	376,748
Nisshin Fudosan Co.	1,500	6,963
Nissin Sugar Manufacturing Co., Ltd.	10,000	20,950
Nitori Holdings Co., Ltd.	3,652	318,208
Noevir Co., Ltd.	1,000	11,963
Nojima Corp.	1,343	8,888
Nomura Holdings, Inc.	30,672	172,692
NTT Data Corp.	93	290,923
Obayashi Road Corp.	28,000	46,994
Piolax, Inc.	5,500	105,142
Point, Inc.	3,983	186,325
Pressance Corp.	7	13,998
Rokko Butter Co., Ltd.	3,000	14,748
Ryoden Trading Co., Ltd.	4,000	21,616
Saison Information Systems Co., Ltd.	6,400	59,802
Sanoyas Hishino Meisho Corp.	4,200	10,199
Sanyo Housing Nagoya Co., Ltd.	12	10,827
Seino Holdings Co., Ltd.	1,000	6,225
Sekisui Jushi Corp.	3,000	27,532
Seria Co., Ltd.	5	8,695
Shidax Corp.	10,700	37,063
Shinsei Bank, Ltd. (2)	7,000	5,333
Shoei Foods Corp.	1,000	6,273
Sojitz Corp.	20,900	33,585
Sony Corp.	7,700	217,041
SRA Holdings	2,300	21,464
Stanley Electric Co., Ltd.	15,717	242,462
Sumitomo Mitsui Financial Group, Inc.	21,011	625,503
Suncall Corp.	11,000	44,519
T&K Toka Co., Ltd.	1,700	23,676
Tachibana Eletech Co., Ltd.	3,400	25,133
Taiyo Elec Co., Ltd.	1,400	8,682

Description	Shares	Value
Common Stocks (continued)
Japan (continued)
Takagi Securities Co., Ltd.	7,000	$           9,916
Takeda Pharmaceutical Co., Ltd.	8,600	395,143
Toa Oil Co., Ltd.	23,000	24,914
Toa Road Corp.	31,000	42,435
Tokai Corp. (Gifu)	600	8,642
Tomoe Engineering Co., Ltd.	1,200	15,227
Torii Pharmaceutical Co., Ltd.	4,400	80,395
Tosei Corp.	82	26,598
Toshiba TEC Corp.	103,000	369,039
Totetsu Kogyo Co., Ltd.	4,000	23,521
Toyota Motor Corp.	6,897	234,798
Toyota Tsusho Corp.	12,400	177,417
Universe Co., Ltd.	1,700	25,295
Watabe Wedding Corp.	2,253	23,627
Yamada Denki Co., Ltd.	3,883	241,734
Yondenko Corp.	10,000	41,900
Yurtec Corp.	2,000	7,309
		11,546,257
Malaysia — 0.3%
Affin Holdings Berhard	166,200	162,591
Mexico — 0.3%
America Movil SAB de C.V., ADR	4,005	186,753
Netherlands — 3.8%
Aegon NV (1)(2)	15,442	79,019
Amsterdam Commodities NV	279	2,917
European Aeronautic Defence and Space Co. NV (2)	14,824	326,214
ING Groep NV (2)	3,822	33,991
Koninklijke KPN NV	17,720	256,893
Koninklijke Philips Electronics NV	325	9,106
Royal Dutch Shell PLC, Class A	61,484	1,634,280
Teleplan International NV	21,712	50,187
		2,392,607
New Zealand — 0.5%
Restaurant Brands New Zealand, Ltd.	13,899	23,745
Telecom Corp. of New Zealand, Ltd.	221,863	318,692
		342,437
Norway — 3.1%
Atea ASA (1)	12,676	81,193
Norske Skogindustrier ASA (1)(2)	47,037	64,134
Petroleum Geo-Services ASA (2)	63,525	571,059
Statoil ASA	29,181	548,241
Yara International ASA	18,247	733,369
		1,997,996
Poland — 0.4%
Polski Koncern Naftowy Orlen (2)	22,305	274,507
Portugal — 1.3%
EDP — Energias de Portugal SA	132,876	404,129
Jeronimo Martins, SGPS, SA	35,865	396,187
		800,316
Russia — 0.6%
Gazprom OAO, ADR	7,835	162,185
OJSC Oil Co. Rosneft, GDR	30,453	193,072
		355,257
Singapore — 3.9%
DBS Group Holdings, Ltd.	112,312	1,150,048
GP Batteries International, Ltd.	24,000	29,745
Ho Bee Investment, Ltd.	11,000	11,767
Hong Leong Finance, Ltd.	16,000	36,002

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

35

August 31, 2010

Schedule of Investments

International Stock Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Singapore (continued)
Jardine Cycle & Carriage, Ltd.	15,000	$       359,867
Keppel Corp., Ltd.	37,524	247,761
Oversea-Chinese Banking Corp., Ltd.	91,000	582,051
QAF, Ltd.	7,000	3,047
United Overseas Bank, Ltd.	2,000	27,621
		2,447,909
South Africa — 0.4%
Naspers, Ltd., N Shares	6,871	277,430
South Korea — 1.5%
LG Corp.	3,956	283,774
Nexen Corp.	811	33,620
Nong Shim Holdings Co., Ltd.	358	18,155
Samsung Electronics Co., Ltd.	604	380,869
Shinsegae Co., Ltd.	452	217,536
Taekwang Industrial Co., Ltd.	41	31,565
		965,519
Spain — 2.0%
Banco Bilbao Vizcaya Argentaria SA	6,069	73,187
Banco Santander SA	78,289	917,411
Iberdrola SA	2,641	18,609
Industria de Diseno Textil SA (Inditex)	3,770	251,537
		1,260,744
Sweden — 3.0%
Bilia AB, A Shares	11,379	157,025
Electrolux AB (1)	15,575	300,267
Nordea Bank AB	17,337	155,390
Saab AB, Class B	1,139	14,092
Svenska Cellulosa AB, B Shares	10,938	145,464
Tele2 AB, B Shares	16,128	290,200
Volvo AB, B Shares (1)(2)	74,649	865,504
		1,927,942
Switzerland — 3.6%
Adecco SA	8,563	399,283
Bossard Holding AG	362	31,395
Coltene Holding AG	62	3,298
Credit Suisse Group AG	16,185	710,849
Emmi AG	311	49,595
Roche Holding AG	4,081	554,718
Zurich Financial Services AG	2,380	530,738
		2,279,876
Taiwan — 1.2%
Asustek Computer, Inc.	150	1,000
Gigabyte Technology Co., Ltd.	304,000	248,161
HON HAI Precision Industry Co., Ltd.	51,450	181,490
Pegatron Corp. (2)	403	504
Taiwan Semiconductor Manufacturing Co., Ltd., ADR	34,148	321,333
		752,488
Turkey — 0.5%
Haci Omer Sabanci Holding AS	26,243	118,579
Turkiye Garanti Bankasi AS	46,492	225,298
		343,877
United Kingdom — 14.1%
AstraZeneca PLC	18,397	910,766
Barclays PLC	54,399	252,290

Description	Shares or Principal Amount	Value
Common Stocks (continued)
United Kingdom (continued)
Barratt Developments PLC (2)	103,913	$       153,071
BG Group PLC	35,086	564,733
BHP Billiton PLC	19,480	547,170
BP PLC	127,606	744,846
British American Tobacco PLC	16,595	563,993
Cape PLC (2)	61,160	253,255
Carnival PLC	17,793	577,692
Computacenter PLC	23,676	103,703
Dart Group PLC	19,644	20,336
Davis Service Group PLC	1,266	7,388
HSBC Holdings PLC	61,817	610,264
Imperial Tobacco Group PLC	20,319	560,920
Next PLC	13,517	410,461
Photo-Me International PLC	55,874	47,344
Rio Tinto PLC	567	28,696
Royal Bank of Scotland Group PLC (2)	452,518	309,387
Royal Dutch Shell PLC, A Shares	19,273	512,241
RPC Group PLC	14,277	59,119
Standard Chartered PLC	23,815	638,620
United Utilities Group PLC	35,218	308,139
Vodafone Group PLC	154,130	371,474
Wolseley PLC (2)	20,085	387,815
		8,943,723
United States — 0.6%
Synthes, Inc.	3,645	402,108
Total Common Stocks (identified cost $57,166,083)		59,903,196
Preferred Stocks — 1.1%
Germany — 1.1%
Einhell Germany AG	352	14,725
Fresenius SE	9,055	644,204
Jungheinrich AG	965	26,830
Total Preferred Stocks (identified cost $592,413)		685,759
Short-Term Investments — 6.0%
Collateral Pool Investment for Securities on Loan — 3.5%
(See Note 2 of the Financial Statements)		2,232,808
Repurchase Agreement — 2.5%
Agreement with Fixed Income Clearing Corp., 0.100%, dated 8/31/2010, to be repurchased at $1,606,810 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 4/6/2015, with a market value of $1,643,175 (at amortized cost)	$1,606,805	1,606,805
Total Short-Term Investments (identified cost $3,839,613)		3,839,613
Total Investments — 101.3% (identified cost $61,598,109)		64,428,568
Other Assets and Liabilities — (1.3)%		(838,092	)
Total Net Assets — 100.0%		$63,590,476

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

36

Marshall Funds

International Stock Fund (continued)

Industry Division

Industry	Value			% of Total Net Assets
Aerospace/Defense	$	340,306		0.5	%
Agriculture		1,525,226		2.4
Airlines		349,950		0.5
Apparel		42,979		0.1
Auto Manufacturers		2,855,610		4.5
Auto Parts & Equipment		1,051,887		1.7
Banks		11,304,188		17.8
Beverages		182,462		0.3
Building Materials		321,009		0.5
Chemicals		2,153,591		3.4
Commercial Services		999,688		1.6
Computers		1,665,037		2.6
Cosmetics/Personal Care		81,346		0.1
Distribution/Wholesale		2,129,565		3.3
Diversified Financial Services		509,212		0.8
Electric		2,169,016		3.4
Electrical Components & Equipment		785,641		1.2
Electronics		199,344		0.3
Engineering & Construction		482,124		0.8
Entertainment		15,699		0.0
Food		578,457		0.9
Food Service		37,063		0.1
Forest Products & Paper		209,599		0.3
Healthcare-Products		480,397		0.8
Holding Companies-Diversified		1,132,659		1.8
Home Builders		153,071		0.2
Home Furnishings		627,077		1.0
Insurance		2,175,793		3.4
Internet		149,202		0.2
Investment Companies		11,428		0.0
Leisure Time		636,178		1.0
Machinery-Diversified		989,897		1.6
Media		1,049,536		1.7
Metal Fabricate/Hardware		114,372		0.2
Mining		2,406,838		3.8
Miscellaneous Manufacturing		337,398		0.5
Office/Business Equipment		499,542		0.8
Oil & Gas		6,131,542		9.6
Oil & Gas Services		571,059		0.9
Packaging & Containers		84,354		0.1
Pharmaceuticals		3,324,257		5.2
Real Estate		159,227		0.3
Retail		2,810,609		4.4
Semiconductors		747,080		1.2
Shipbuilding		10,199		0.0
Software		553,458		0.9
Telecommunications		3,226,474		5.1
Textiles		57,675		0.1
Transportation		1,166,736		1.8
Water		308,139		0.5
Total Common Stocks		59,903,196		94.2
Preferred Stocks		685,759		1.1
Collateral Pool Investment for Securities on Loan		2,232,808		3.5
Repurchase Agreement		1,606,805		2.5
Total Investments		64,428,568		101.3
Other Assets and Liabilities		(838,092	)	(1.3	)
Total Net Assets	$	63,590,476		100.0	%

Emerging Markets Equity Fund

Description	Shares	Value
Common Stocks — 97.6%
Bermuda — 2.3%
Credicorp, Ltd.	5,400	$     568,350
GOME Electrical Appliances Holdings, Ltd. (2)	906,900	276,311
Huabao International Holdings, Ltd.	395,000	569,744
		1,414,405
Brazil — 13.3%
Banco Bradesco SA, ADR	86,204	1,519,776
Cia de Concessoes Rodoviarias	27,071	621,188
Gafisa SA, ADR	45,515	626,741
Itau Unibanco Holding SA, ADR	52,759	1,138,012
Localiza Rent a Car SA	27,725	386,769
MRV Engenharia e Participacoes SA	99,468	829,726
Petroleo Brasileiro SA, ADR	27,102	903,852
Souza Cruz SA	6,330	291,766
Tractebel Energia SA	24,722	326,999
Vale SA, ADR	51,812	1,385,971
		8,030,800
Chile — 1.6%
Banco Santander—Chile, ADR	7,167	618,656
Lan Airlines SA, ADR	12,206	326,388
		945,044
China — 12.5%
Anhui Conch Cement Co., Ltd., Class H	165,400	588,987
China Communications Construction Co., Ltd., Class H	388,600	343,202
China Construction Bank Corp., Class H	972,300	802,464
China High Speed Transmission Equipment Group Co., Ltd.	281,300	627,783
China Shenhua Energy Co., Ltd., Class H	154,300	560,370
Dongfeng Motor Group Co., Ltd., Class H	404,000	627,391
Industrial & Commercial Bank of China, Ltd., Class H	1,714,200	1,245,088
Parkson Retail Group, Ltd.	177,300	295,395
PetroChina Co., Ltd., ADR	8,191	890,935
Renhe Commercial Holdings Co., Ltd.	2,678,800	533,780
SINA Corp. (2)	18,022	771,702
Yanzhou Coal Mining Co., Ltd., Class H	145,500	298,529
		7,585,626
Colombia — 1.0%
BanColombia SA, ADR	9,624	618,150
Czech Republic — 1.8%
CEZ AS	8,074	338,434
Komercni Banka AS	3,940	760,221
		1,098,655
Egypt — 1.7%
Commercial International Bank	94,828	640,707
Orascom Construction Industries	8,908	393,441
		1,034,148
Hong Kong — 3.5%
China Mobile, Ltd., ADR	11,057	567,445
CNOOC, Ltd., ADR	6,246	1,060,696

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

37

August 31, 2010

Schedule of Investments

Emerging Markets Equity Fund (continued)

Description	Shares	Value
Common Stocks (continued)
Hong Kong (continued)
Fushan International Energy Group, Ltd.	918,000	$     480,316
		2,108,457
India — 8.8%
Bharti Airtel, Ltd.	96,764	673,172
Housing Development Finance Corp., Ltd.	52,655	700,668
Infosys Technologies, Ltd., ADR	10,549	604,352
LIC Housing Finance, Ltd.	16,567	422,628
Power Finance Corp., Ltd.	69,320	514,963
State Bank of India, GDR	9,624	1,133,226
Sterlite Industries India, Ltd.	198,436	635,932
Unitech, Ltd.	381,650	631,215
		5,316,156
Indonesia — 0.5%
Bank Mandiri Tbk PT	441,653	288,407
Israel — 1.7%
Israel Chemicals, Ltd.	51,198	646,083
Teva Pharmaceutical Industries, Ltd., ADR	7,208	364,580
		1,010,663
Mexico — 5.0%
America Movil SAB de C.V., ADR	10,853	506,075
Corp. GEO SAB de CV (2)	300,738	774,663
Desarrolladora Homex SAB de CV, ADR (2)	21,624	601,364
Grupo Financiero Banorte SAB de CV, Class O	93,274	333,752
Grupo Mexico SAB de CV	315,717	811,095
		3,026,949
Poland — 0.9%
Powszechna Kasa Oszczednosci Bank Polski SA	43,777	527,818
Portugal — 0.7%
Jeronimo Martins, SGPS, SA	35,632	393,613
Russia — 9.6%
Federal Grid Co. Unified Energy System JSC (2)	37,476,818	427,236
Gazprom OAO, ADR	46,588	964,372
Magnitogorsk Iron & Steel Works, GDR	27,337	303,167
Mobile Telesystems OJSC, ADR	35,585	742,303
NovaTek OAO, GDR	11,808	866,707
OJSC Novolipetsk Steel (NLMK), GDR	17,686	514,663
OJSC Oil Co. Rosneft, GDR	153,781	974,972
Sberbank of Russian Federation	276,600	666,606
TMK OAO, GDR (2)	23,656	368,560
		5,828,586
South Africa — 6.6%
ABSA Group, Ltd.	53,654	896,658
Aspen Pharmacare Holdings, Ltd. (2)	73,109	833,691
Massmart Holdings, Ltd.	18,133	301,094
MTN Group, Ltd.	38,295	625,701
Naspers, Ltd., N Shares	33,278	1,343,664
		4,000,808

Description	Shares	Value
Common Stocks (continued)
South Korea — 10.0%
Daum Communications Corp. (2)	7,183	$     421,190
KB Financial Group, Inc., ADR	9,668	393,874
MegaStudy Co., Ltd.	2,447	353,100
NHN Corp. (2)	5,549	909,483
Samsung Electronics Co., Ltd., GDR (6)(7)	4,806	1,511,487
Shinhan Financial Group Co., Ltd., ADR	5,171	396,305
Shinsegae Co., Ltd.	2,637	1,269,121
Woongjin Coway Co., Ltd.	24,504	818,571
		6,073,131
Taiwan — 6.9%
Acer, Inc.	272,847	639,658
Delta Electronics, Inc.	208,994	792,682
HON HAI Precision Industry Co., Ltd.	209,466	738,892
Synnex Technology International Corp.	193,961	398,409
Taiwan Semiconductor Manufacturing Co., Ltd.	298,000	547,924
Taiwan Semiconductor Manufacturing Co., Ltd., ADR	58,283	548,443
Unimicron Technology Corp.	316,082	500,261
		4,166,269
Thailand — 4.5%
Bangkok Bank PCL	117,300	573,475
Banpu PCL	52,600	1,028,637
Kasikornbank PCL	190,700	694,673
Kasikornbank PCL, NVDR	125,100	433,723
		2,730,508
Turkey — 2.7%
Anadolu Efes Biracilik Ve Malt Sanayii AS	22,936	307,906
Haci Omer Sabanci Holding AS	139,257	629,235
Turkiye Garanti Bankasi AS	138,696	672,113
		1,609,254
United Kingdom — 2.0%
BHP Billiton PLC	30,598	855,748
SABMiller PLC	13,415	381,841
		1,237,589
Total Common Stocks (identified cost $43,628,367)		59,045,036
Preferred Stocks — 0.3%
Brazil — 0.3%
Usinas Siderurgicas de Minas Gerais S.A. (Usiminas)	7,722	193,594
Total Preferred Stocks (identified cost $190,471)		193,594

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

38

Marshall Funds

Emerging Markets Equity Fund (continued)

Description	Principal Amount	Value
Short-Term Investments — 1.9%
Repurchase Agreement — 1.9%
Agreement with State Street Bank & Trust Co., 0.100%, dated 8/31/2010, to be repurchased at $1,148,907 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 9/25/2039, with a market value of $1,172,153 (at amortized cost)	$1,148,904	$  1,148,904
Total Short-Term Investments (identified cost $1,148,904)		1,148,904
Total Investments — 99.8% (identified cost $44,967,742)		60,387,534
Other Assets and Liabilities — 0.2%		105,701
Total Net Assets — 100.0%		$60,493,235

Industry Division

Industry	Value		% of Total Net Assets
Agriculture	$	291,766	0.5	%
Airlines		326,388	0.5
Auto Manufacturers		627,391	1.0
Banks		14,131,874	23.4
Beverages		689,747	1.1
Building Materials		1,965,014	3.2
Chemicals		1,215,827	2.0
Coal		2,367,852	3.9
Commercial Services		1,361,056	2.3
Computers		1,244,010	2.1
Diversified Financial Services		2,428,438	4.0
Electric		1,092,669	1.8
Electrical Components & Equipment		1,420,465	2.3
Electronics		1,637,562	2.7
Engineering & Construction		736,643	1.2
Environmental Control		818,571	1.4
Food		393,613	0.7
Healthcare-Products		833,690	1.4
Holding Companies-Diversified		629,235	1.0
Home Builders		829,726	1.4
Internet		2,102,375	3.5
Iron/Steel		817,830	1.4
Media		1,343,664	2.2
Metal Fabricate/Hardware		368,561	0.6
Mining		3,688,746	6.1
Oil & Gas		5,661,533	9.4
Pharmaceuticals		364,581	0.6
Real Estate		1,791,737	3.0
Retail		2,141,921	3.5
Semiconductors		2,607,854	4.3
Telecommunications		3,114,697	5.1
Total Common Stocks		59,045,036	97.6
Preferred Stocks		193,594	0.3
Repurchase Agreement		1,148,904	1.9
Total Investments		60,387,534	99.8
Other Assets and Liabilities		105,701	0.2
Total Net Assets	$	60,493,235	100.0	%

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

39

August 31, 2010

Schedule of Investments

Ultra Short Tax-Free Fund

Description/Credit Ratings (8)	Principal Amount	Value
Municipals — 91.1%
Alabama — 1.3%
Alabama Board of Education, Higher Education, Revenue Bonds, AMBAC, 5.375%, 10/1/2014 NR/A1; Call 10/1/2010	$     50,000	$         51,185
Alabama Public Housing Authorities, Multi-Family Housing, Revenue Bonds, FSA, 3.875%, 1/1/2012 AAA/Aa2	50,000	51,142
Alabama Public School & College Authority, Education, Revenue Bonds, 5.000%, 2/1/2012 AA/Aa1; Call 2/1/2011	155,000	157,919
Chatom Industrial Development Board, Utilities, Revenue Bonds, 0.900%, 11/15/2010 A/A-1/NR; Call 11/15/2010 (4)	1,000,000	1,000,140
Chatom Industrial Development Board, Utilities, Revenue Bonds, 1.200%, 8/1/2037 A/A-1/NR; Call 2/1/2011 (4)	1,500,000	1,500,120
County of Jefferson, Multi-Family Housing, Revenue Bonds, 5.400%, 9/1/2012 NR/NR; Call 10/1/2010	25,000	25,003
County of Jefferson, Water, Revenue Bonds, FSA, 5.250%, 2/1/2011 AAA/Aa3; Call 10/1/2010	40,000	39,871
County of Pike, General Obligation, GO UT, 2.000%, 10/1/2011 NR/Baa1	100,000	100,940
County of Pike, General Obligation, GO UT, 2.000%, 10/1/2012 NR/Baa1	470,000	475,269
Gadsden Special Care Facilities Financing Authority, Medical, Revenue Bonds, 4.500%, 7/1/2011 NR/NR; Call 10/1/2010	185,000	185,004
Lake Martin Area Industrial Development Authority, Development, Revenue Bonds, CNTY GTD, 5.000%, 11/1/2011 A/NR	450,000	462,622
Troy State University, Higher Education, Revenue Bonds, NATL-RE, 5.000%, 11/1/2011 NR/Aa3; Call 11/1/2010	25,000	25,660
		4,074,875
Alaska — 0.2%
Alaska Industrial Development & Export Authority, Development, Revenue Bonds, 3.500%, 4/1/2012 A/NR	270,000	279,245
Alaska Railroad Corp., Transportation, Revenue Bonds, NATL-RE, FGIC, 4.000%, 8/1/2011 A+/Aa3	50,000	51,375
State of Alaska, General, Certificate of Participation, AMBAC, 4.450%, 7/15/2011 NR/WR	235,000	241,996
State of Alaska, General, Certificate of Participation, AMBAC, 4.550%, 7/15/2012 NR/WR	100,000	105,649
		678,265
Arizona — 2.9%
Arizona Health Facilities Authority, Medical, Revenue Bonds, 5.000%, 1/1/2012 A+/NR	100,000	105,672
Arizona School Facilities Board, Education, Revenue Bonds, AMBAC, 4.000%, 7/1/2015 NR/WR	50,000	52,969
Arizona School Facilities Board, Education, Revenue Bonds, AMBAC, 4.250%, 7/1/2015 NR/WR	25,000	26,766
Arizona Water Infrastructure Finance Authority, Revenue Bonds, 4.000%, 10/1/2011 AAA/Aaa	25,000	25,967
City of Tolleson, General Obligation, GO UT, AMBAC, 4.300%, 7/1/2011 NR/A1; Call 10/1/2010	25,000	25,068
County of Maricopa, Medical, Certificate of Participation, 5.100%, 7/1/2011 NR/Aa2; Call 10/1/2010	270,000	273,553
County of Mohave, General, Revenue Bonds, AGC, 3.250%, 4/1/2012 AAA/Aa3	65,000	67,294
County of Pima, General, Certificate of Participation, AMBAC, 5.000%, 1/1/2012 NR/Aa3	25,000	26,237
Glendale Industrial Development Authority, Medical, Revenue Bonds, 3.875%, 12/1/2012 BBB/NR	40,000	41,475
Maricopa County Elementary School District No. 2 Riverside, School District, GO UT, 3.000%, 7/1/2012 NR/A2	425,000	432,582
Maricopa County Unified School District No. 95 Queen Creek, School District, GO UT, NATL-RE FGIC, 3.500%, 7/1/2012 NR/A1	225,000	229,882
Pima County Unified School District No. 30 Sahuarita, School District, GO UT, 0.000%, 1/1/2012 A+/NR	93,000	89,864
Pima County Unified School District No. 30 Sahuarita, School District, GO UT, 0.000%, 7/1/2012 A+/NR	221,000	210,807
Pima County Unified School District No. 30 Sahuarita, School District, GO UT, 3.000%, 7/1/2012 A+/NR	900,000	922,266
Puttable Floating Option Tax-Exempt Receipts, Medical, Revenue Bonds, 0.550%, 2/1/2042 NR/Aa3; Call 2/1/2013 (4)	3,360,000	3,360,000
Scottsdale Industrial Development Authority, Medical, Revenue Bonds, FSA, 0.990%, 9/1/2045 AAA/Aa3; Call 9/7/2010 (4)	2,600,000	2,600,000
Town of Gilbert, Transportation, Revenue Bonds, NATL-RE FGIC, 5.000%, 7/1/2012 AA-/Aa3	50,000	53,793
University of Arizona, General, Certificate of Participation, AMBAC, 3.500%, 6/1/2011 AA-/Aa3	50,000	51,147
Yuma Municipal Property Corp., Water, Revenue Bonds, XLCA, 5.000%, 7/1/2011 A+/A1	200,000	205,818
		8,801,160
Arkansas — 0.2%
Conway Health Facilities Board, Medical, Revenue Bonds, 2.000%, 8/1/2011 BBB+/NR	155,000	156,600
Conway Health Facilities Board, Medical, Revenue Bonds, 2.750%, 8/1/2012 BBB+/NR	270,000	275,767
Siloam Springs Public Education Facilities Board, Education, Revenue Bonds, 2.000%, 12/1/2011 NR/NR	100,000	101,308
Siloam Springs Public Education Facilities Board, Education, Revenue Bonds, 2.000%, 12/1/2012 NR/NR	100,000	101,900
		635,575
California — 7.7%
Abag Finance Authority for Nonprofit Corps., Education, Revenue Bonds, 0.550%, 1/1/2037 A/A-1/NR; Call 9/1/2010 (4)	665,000	665,000
Anaheim Public Financing Authority, Power, Revenue Bonds, AMBAC, 4.000%, 10/1/2012 NR/WR	25,000	25,780
Antioch Area Public Facilities Financing Agency, Mello-Roos, Special Tax, NATL-RE, 4.250%, 8/1/2012 A/A1	100,000	105,686

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

40

Marshall Funds

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
California (continued)
Bay Area Governments Association, Water, Revenue Bonds, XLCA, 4.000%, 3/1/2012 A/A2	$   225,000	$       230,420
Burbank Unified School District, School District, GO UT, NATL-RE FGIC, 5.375%, 8/1/2013 AA-/WR; Call 8/1/2011	125,000	131,445
California Educational Facilities Authority, Higher Education, Revenue Bonds, AMBAC, 0.000%, 9/1/2011 NR/Aa3	150,000	148,917
California Health Facilities Financing Authority, Medical, Revenue Bonds, 5.000%, 11/15/2011 NR/A2	170,000	178,508
California Municipal Finance Authority, Education, Revenue Bonds, 0.550%, 6/1/2023 A/A-1/NR; Call 9/1/2010 (4)	345,000	345,000
California Municipal Finance Authority, Education, Revenue Bonds, 0.550%, 6/1/2037 A/A-1/NR; Call 9/1/2010 (4)	325,000	325,000
California Pollution Control Financing Authority, Pollution, Revenue Bonds, NATL-RE-IBC, 5.900%, 6/1/2014 A/A2	550,000	635,607
California Statewide Communities Development Authority, Medical, Revenue Bonds, AGM, 0.860%, 7/1/2040 AAA/Aa3; Call 9/3/2010 (4)	2,000,000	2,000,000
California Statewide Communities Development Authority, Water, Revenue Bonds, FSA, 3.000%, 10/1/2010 AAA/Aa3	50,000	50,105
Chino Redevelopment Agency, General, Tax Allocation, AMBAC, 4.000%, 9/1/2012 A-/WR	300,000	306,876
City & County of San Francisco, General Obligation, GO UT, 5.000%, 6/15/2011 AA/Aa1; Call 10/1/2010	150,000	153,540
City of Los Angeles, General Obligation, GO UT, AGM, 4.300%, 9/1/2010 AAA/Aa2	25,000	25,000
City of Newport Beach, Medical, Revenue Bonds, 4.000%, 2/8/2011 AA/Aa3 (4)	100,000	101,250
City of Salinas, General, Certificate of Participation, AMBAC, 3.500%, 9/1/2010 A/WR	250,000	250,000
City of Santa Ana, General, Certificate of Participation, AMBAC, 5.000%, 6/1/2012 NR/WR	225,000	232,972
Compton Unified School District, School District, GO UT, AMBAC, 0.000%, 6/1/2011 A/Aa3	300,000	297,627
Contra Costa Water District, Water, Revenue Bonds, AGM, 5.500%, 10/1/2013 AAA/Aa2; Call 10/1/2011	100,000	105,311
County of Inyo, General, Certificate of Participation, 5.000%, 2/1/2011 NR/A2	30,000	30,351
Delhi Unified School District, School District, GO UT, AMBAC, 0.000%, 8/1/2012 NR/WR (5)	405,000	382,020
Delhi Unified School District, School District, GO UT, AMBAC, 0.000%, 8/1/2013 NR/WR (5)	420,000	382,595
Delhi Unified School District, School District, GO UT, AMBAC, 0.000%, 8/1/2014 NR/WR (5)	490,000	427,819
El Centro Financing Authority, Transportation, Revenue Bonds, 2.000%, 10/1/2011 A/NR	270,000	274,171
Elsinore Valley Municipal Water District, General, Certificate of Participation, 2.900%, 7/1/2035 AAA/A-2/Aaa; Call 9/8/2010 (4)	3,215,000	3,215,000
Folsom Public Financing Authority, General, Revenue Bonds, 2.000%, 9/1/2011 A-/NR	600,000	603,306
Fontana Unified School District, School District, GO UT, 4.000%, 12/1/2012 SP-1+/MIG1	1,500,000	1,590,990
Fresno Joint Powers Financing Authority, Mello-Roos, Revenue Bonds, XLCA, 4.000%, 10/1/2014 AA-/A1; Call 10/1/2010	90,000	90,155
Gilroy Unified School District, School District, GO UT, 0.000%, 4/1/2013 SP-1+/MIG1	500,000	469,100
Hanford Joint Union High School District, GO UT, 0.000%, 8/1/2011 A+/A1	125,000	123,154
Imperial Irrigation District, General, Certificate of Participation, AMBAC, 4.600%, 7/1/2012 AA-/Aa2; Call 10/1/2010	150,000	152,003
Long Beach Bond Finance Authority, Development, Revenue Bonds, AMBAC, 4.500%, 11/1/2011 BBB/WR	150,000	152,457
Long Beach Bond Finance Authority, Development, Revenue Bonds, AMBAC, 5.500%, 11/1/2014 BBB/WR; Call 11/1/2011	100,000	104,098
Long Beach Bond Finance Authority, General, Tax Allocation, AMBAC, 5.000%, 8/1/2012 BBB/WR	100,000	103,780
Los Angeles Department of Water & Power, Power, Revenue Bonds, NATL-RE, 5.375%, 7/1/2012 AA-/Aa3; Call 7/1/2011	25,000	26,061
Los Angeles Department of Water & Power, Power, Revenue Bonds, NATL-RE, 5.375%, 7/1/2012 AA-/Aa3; Call 7/1/2011	25,000	26,010
Los Angeles State Building Authority, Facilities, Revenue Bonds, 5.625%, 5/1/2011 A/A2	85,000	87,559
Midpeninsula Regional Open Space District, General, Revenue Bonds, AMBAC, 3.250%, 9/1/2012 NR/WR	100,000	102,769
Mojave Unified School District School Facilities Improvement District No. 2, School District, GO UT, 0.000%, 6/1/2013 A+/SP-1+/NR	2,070,000	1,941,970
Montclair Redevelopment Agency, General, Tax Allocation, AMBAC, 4.250%, 9/1/2011 BBB/WR	100,000	101,996
Murrieta Valley Unified School District Public Financing Authority, School District, GO UT, NATL-RE FGIC, 0.000%, 9/1/2010 A+/Aa2	55,000	55,000
Oakland Redevelopment Agency, General, Tax Allocation, NATL-RE FGIC, 5.500%, 9/1/2012 A/WR	1,165,000	1,220,279
Oxnard Union High School District, School District, GO UT, NATL-RE, 5.250%, 2/1/2012 A+/Baa1	50,000	52,142
Perris Public Financing Authority, General, Tax Allocation, 4.400%, 10/1/2010 NR/NR	480,000	480,173
Plumas Unified School District, GO UT, 3.900%, 8/1/2012 A/Baa1	25,000	25,377
Port of Oakland, Transportation, Revenue Bonds, FGIC, 4.000%, 11/1/2013 A/A2; Call 11/1/2012	25,000	26,117
Port of Oakland, Transportation, Revenue Bonds, NATL-RE FGIC, 3.500%, 11/1/2010 A/A2	100,000	100,448
Rialto Unified School District, General, Certificate of Participation, AMBAC, 6.000%, 9/1/2010 A-/WR	100,000	100,000
Richmond Joint Powers Financing Authority, General, Revenue Bonds, Assured Guaranty Corp., 3.500%, 8/1/2011 AAA/Aa3	100,000	102,363
Sacramento Municipal Utility District, Power, Revenue Bonds, NATL-RE, 5.000%, 7/1/2012 A/Baa1	100,000	106,453
Sacramento Regional County Sanitation District, Water, Revenue Bonds, 5.400%, 12/1/2013 AA/Aa2; Call 12/1/2010	100,000	102,140

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

41

August 31, 2010

Schedule of Investments

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
California (continued)
Sacramento Unified School District, School District, GO UT, NATL-RE FGIC, 5.000%, 7/1/2014 A/Aa2; Call 1/1/2011	$     50,000	$         51,741
San Joaquin County Transportation Authority, General, Revenue Bonds, 5.000%, 4/1/2011 SP-1+/NR	570,000	584,746
San Jose Redevelopment Agency, General, Tax Allocation, NATL-RE, 4.000%, 8/1/2011 A/A2; Call 10/1/2010	25,000	25,288
Savanna Elementary School District, School District, GO UT, 4.000%, 5/1/2012 A+/SP-1+/NR	1,000,000	1,039,340
Sierra View Local Health Care District, Medical, Revenue Bonds, 4.100%, 7/1/2011 NR/NR	130,000	131,851
State of California, General Obligation, GO UT, 3.700%, 4/1/2011 A-/A1; Call 10/1/2010	100,000	100,240
State of California, General Obligation, GO UT, NATL-RE FGIC, 4.500%, 2/1/2014 A/A2; Call 10/1/2010	100,000	100,230
Stockton Unified School District, GO UT, 4.000%, 2/1/2011 SP-1+/NR; Call 10/1/2010	100,000	100,166
Sunol Glen Unified School District, School District, GO UT, NATL-RE, 5.000%, 7/1/2011 NR/A1; Call 1/1/2011	125,000	125,374
Twin Rivers Unified School District, Education, Certificate of Participation, AGM, 3.500%, 5/1/2013 AAA/Aa3; Call 10/1/2010 (4)(5)	2,000,000	1,999,960
Vallejo City Unified School District, School District, GO UT, NATL-RE, 4.650%, 2/1/2011 A/Baa1	100,000	100,612
Westlands Water District, General, Certificate of Participation, 4.000%, 9/1/2012 A+/Baa1	50,000	53,108
		23,484,556
Colorado — 6.7%
Cherry Creek South Metropolitan District No. 1, Development, GO, CIFG, 4.250%, 12/15/2014 NR/NR	240,000	261,437
City & County of Denver, Airport, Revenue Bonds, Assured Guaranty Corp., 0.590%, 11/15/2025 AAA/A-1/Aa3; Call 9/7/2010 (4)	1,275,000	1,275,000
City of Colorado Springs, Medical, Revenue Bonds, AMBAC, 0.580%, 12/15/2024 A-/A3 (4)	1,750,000	1,750,000
City of Westminster, Multi-Family Housing, Revenue Bonds, FHLMC, 0.530%, 6/1/2012 NR/NR; Call 9/1/2010 (4)	700,000	700,000
Colorado Educational & Cultural Facilities Authority, Education, Revenue Bonds, 2.375%, 3/1/2013 A/NR	150,000	152,020
Colorado Educational & Cultural Facilities Authority, Education, Revenue Bonds, 2.400%, 12/1/2012 NR/NR	260,000	262,668
Colorado Health Facilities Authority, Nursing Homes, Revenue Bonds, 0.430%, 8/15/2034 A/A-1/NR; Call 9/1/2010 (4)	2,000,000	2,000,000
Colorado Water Resources & Power Development Authority, Water, Revenue Bonds, 4.250%, 1/1/2012 A/Baa1	135,000	139,896
Cornerstar Metropolitan District, Development, Revenue Bonds, 0.750%, 12/1/2037 A/A-1/NR; Call 9/1/2010 (4)	2,000,000	2,000,000
Cottonwood Water & Sanitation District, General Obligation, GO UT, AMBAC, 5.000%, 12/1/2011 NR/WR	140,000	145,856
Denver Health & Hospital Authority, Medical, Revenue Bonds, 4.000%, 12/1/2013 BBB/NR	440,000	462,255
Denver Health & Hospital Authority, Medical, Revenue Bonds, 5.000%, 12/1/2012 BBB/NR	680,000	718,692
Denver Urban Renewal Authority, General, Tax Allocation, 0.840%, 9/1/2017 NR/A3/VMIG2; Call 9/1/2010 (4)	200,000	200,000
E-470 Public Highway Authority, Transportation, Revenue Bonds, NATL-RE, 4.000%, 9/1/2011 A/Baa1	50,000	50,320
E-470 Public Highway Authority, Transportation, Revenue Bonds, NATL-RE, 5.000%, 9/1/2011 A/Baa1 (4)	450,000	464,625
Eagle Bend Metropolitan District No. 2, Development, GO, RADIAN, 4.500%, 12/1/2012 A-/NR	50,000	51,340
Fronterra Village Metropolitan District, Development, GO, CIFG, 3.650%, 12/1/2010 NR/WR	125,000	125,296
Grand Junction Downtown Development Authority, Development, Tax Allocation, 3.000%, 12/15/2012 NR/NR	235,000	234,840
Little Thompson Water District, Revenue Bonds, 3.500%, 12/1/2013 NR/A2; Call 12/1/2012	40,000	41,453
Metropolitan Football Stadium District, Development, Revenue Bonds, 0.000%, 1/1/2011 A/Baa1	15,000	14,915
Park Creek Metropolitan District, Development, GO, 0.550%, 6/1/2011 NR/Aa3 (4)	2,860,000	2,860,000
Park Creek Metropolitan District, Development, Revenue Bonds, 4.750%, 12/1/2010 NR/Baa2	1,000,000	1,008,740
Sand Creek Metropolitan District, Development, GO, XLCA, 5.000%, 12/1/2012 NR/WR	50,000	52,009
Sand Creek Metropolitan District, Development, GO, XLCA, 5.000%, 12/1/2014 NR/WR; Call 12/1/2013	175,000	181,722
SCA Tax Exempt Trust, Multi-Family Housing, Revenue Bonds, FSA, 0.550%, 1/1/2030 AAA/A-1/NR (4)	4,780,000	4,780,000
State of Colorado, General, Certificate of Participation, 0.000%, 3/1/2012 AA-/Aa3	300,000	295,167
Washington County School District R-3, GO UT, 5.100%, 12/1/2012 AA-/NR; Call 10/1/2010	80,000	80,245
Widefield Water & Sanitation District, Water, Revenue Bonds, NATL-RE, 3.250%, 12/1/2011 A/Baa1	100,000	102,198
		20,410,694
Connecticut — 0.5%
City of Ansonia, General Obligation, GO UT, NATL-RE, FGIC, 4.500%, 10/15/2012 A+/A1; Call 10/1/2010	20,000	20,455
City of Bridgeport, General Obligation, GO UT, AMBAC, 6.250%, 3/1/2012 NR/A1	275,000	293,936
Puttable Floating Option Tax-Exempt Receipts, General, Revenue Bonds, 0.550%, 7/1/2037 NR/Aa3 (4)	1,000,000	1,000,000
Town of Madison, General Obligation, GO UT, 4.500%, 6/15/2013 NR/Aaa; Call 6/15/2011	50,000	51,574
Town of Vernon, General Obligation, GO UT, AGM, 3.000%, 9/15/2011 NR/Aa2; Call 10/1/2010	100,000	100,145
		1,466,110
Delaware — 0.7%
City of Wilmington, Education, Revenue Bonds, 3.000%, 7/1/2031 NR/A1/VMIG1; Call 9/1/2010 (4)	2,000,000	2,000,000
District of Columbia — 0.2%
District of Columbia Water & Sewer Authority, Revenue Bonds, FSA, 0.500%, 10/1/2018 NR/NR; Call 10/1/2010 (4)(6)(7)	500,000	500,000
Washington Convention Center Authority, Facilities, Revenue Bonds, AMBAC, 5.000%, 10/1/2010 A/A1	250,000	250,858
		750,858

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

42

Marshall Funds

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Florida — 6.5%
Citizens Property Insurance Corp., General, Revenue Bonds, BHAC-CR NATL-RE, 5.000%, 3/1/2012 AA+/Aa1	$   185,000	$       194,056
Citizens Property Insurance Corp., Power, Revenue Bonds, 2.050%, 6/1/2013 A+/A2 (4)	2,000,000	1,981,940
City of Cape Coral, Utilities, Revenue Bonds, 2.000%, 10/1/2011 NR/A2	605,000	607,831
City of Gulf Breeze, General, Revenue Bonds, 5.000%, 12/1/2010 NR/NR; Call 10/1/2010 (4)	5,100,000	5,099,694
City of Lakeland, Utilities, Revenue Bonds, AMBAC, 3.250%, 10/1/2010 NR/WR	100,000	100,096
City of Leesburg, Medical, Revenue Bonds, 5.000%, 7/1/2012 BBB+/Baa1	110,000	115,383
City of Ocala, General, Revenue Bonds, AMBAC, 3.400%, 10/1/2012 NR/WR	150,000	156,372
City of Palm Bay, Utilities, Revenue Bonds, NATL-RE FGIC, 3.250%, 10/1/2012 A/Aa3	100,000	104,068
City of Sarasota, General, Revenue Bonds, AMBAC, 0.000%, 11/1/2011 NR/WR	145,000	142,441
City of Tallahassee, Medical, Revenue Bonds, NATL-RE, 6.625%, 12/1/2013 A/Baa1; Call 10/1/2010	570,000	572,525
County of Broward, Airport, Revenue Bonds, 5.000%, 10/1/2011 A+/A1	125,000	129,549
County of Clay, General, Revenue Bonds, AMBAC, 3.000%, 6/1/2012 NR/A2	345,000	353,932
County of Escambia, Pollution, Revenue Bonds, 1.750%, 6/15/2012 A/A3 (4)	1,000,000	1,001,570
County of Lee, Transportation, Revenue Bonds, AMBAC, 5.500%, 10/1/2014 A-/A3; Call 10/1/2011	200,000	207,598
County of St. Lucie, General Obligation, GO, AMBAC, 4.150%, 10/1/2010 NR/WR	50,000	50,122
County of St. Lucie, General Obligation, GO, AMBAC, 4.250%, 10/1/2011 NR/WR	100,000	103,716
County of Volusia, General, Revenue Bonds, AGM, 3.500%, 12/1/2013 NR/Aa3; Call 12/1/2010	50,000	50,793
First Florida Governmental Financing Commission, General, Revenue Bonds, AMBAC, 3.900%, 7/1/2011 NR/Aa3	50,000	51,112
Florida Department of Corrections, General, Certificate of Participation, AMBAC, 3.300%, 3/1/2012 NR/WR	200,000	203,632
Florida Municipal Power Agency, Power, Revenue Bonds, 4.000%, 10/1/2010 NR/A2	250,000	250,650
Florida Rural Utility Financing Commission, Water, Revenue Bonds, 3.500%, 11/1/2011 NR/MIG1; Call 10/1/2010	315,000	315,047
Florida State Board of Education, Education, Revenue Bonds, AMBAC, 5.500%, 7/1/2015 AAA/A1; Call 7/1/2011	525,000	550,798
Florida State Board of Education, Education, Revenue Bonds, NATL-RE FGIC, 5.500%, 7/1/2012 AAA/A1	270,000	294,062
Florida State Board of Education, Higher Education, Revenue Bonds, 5.250%, 10/1/2013 A/A2; Call 10/1/2010	180,000	182,367
Highlands County Health Facilities Authority, Medical, Revenue Bonds, 5.000%, 11/15/2010 AA-/Aa3	145,000	146,209
Hillsborough County Aviation Authority, Airport, Revenue Bonds, AMBAC, 4.000%, 10/1/2011 A+/Aa3	150,000	155,471
Jacksonville Economic Development Commission, Medical, Revenue Bonds, AMBAC, 5.000%, 2/1/2011 NR/Baa1	200,000	202,630
Lee County, Water and Sewer, Revenue Bonds, MBIA, 2.875%, 10/1/2011 NR/Aa3	50,000	51,160
Martin County Industrial Development Authority, General, Revenue Bonds, 0.830%, 10/1/2016 NR/A2/VMIG1; Call 9/1/2010 (4)	1,040,000	1,040,000
Orange County Health Facilities Authority, Medical, Revenue Bonds, 4.000%, 10/1/2013 A/A2	220,000	232,797
Orange County Health Facilities Authority, Medical, Revenue Bonds, 5.000%, 10/1/2011 A/A2	555,000	577,328
Palm Beach County School District, General, Certificate of Participation, FGIC, 5.000%, 8/1/2011 AA/WR (4)	50,000	51,772
Palm Beach County School District, General, Certificate of Participation, NATL-RE, 3.900%, 8/1/2015 AA-/Aa3	100,000	109,877
Pasco County School Board, Education, Revenue Bonds, AGM, 5.000%, 10/1/2010 AAA/NR	150,000	150,422
Polk County School Board, General, Certificate of Participation, AGM, 4.500%, 1/1/2012 AAA/Aa3; Call 1/1/2011	250,000	255,488
Polk County School District, Education, Revenue Bonds, AGM, 4.500%, 10/1/2012 AAA/Aa3	25,000	26,544
Polk County School District, Education, Revenue Bonds, NATL-RE, 5.000%, 10/1/2013 A+/Baa1	145,000	157,964
Reedy Creek Improvement District, Utilities, Revenue Bonds, 5.250%, 10/1/2011 A/A1	245,000	256,540
South Broward Hospital District, Medical, Revenue Bonds, 5.000%, 5/1/2012 AA-/Aa3	500,000	526,730
St. Lucie County School Board, Education, Revenue Bonds, NATL-RE FGIC, 5.000%, 10/1/2012 A/A2	855,000	914,893
University Athletic Association, Inc., Higher Education, Revenue Bonds, 0.800%, 10/1/2031 A+/A2/VMIG1; Call 9/1/2010 (4)	2,080,000	2,080,000
Volusia County School Board, Education, Revenue Bonds, AGM, 5.250%, 10/1/2013 AAA/Aa3	235,000	254,897
		20,010,076
Georgia — 5.4%
Atlanta & Fulton County Recreation Authority, General, Revenue Bonds, AMBAC, 3.750%, 12/1/2010 A/A1	70,000	70,547
Atlanta Development Authority, Higher Education, Revenue Bonds, AMBAC, 4.300%, 10/1/2010 NR/WR	250,000	250,458
Bartow County Development Authority, Pollution, Revenue Bonds, 0.700%, 12/1/2032 A/A-1/A3/VMIG2; Call 9/1/2010 (4)	3,000,000	3,000,000
Burke County Development Authority, Pollution, Revenue Bonds, 0.700%, 7/1/2049 A/A-1/A3/VMIG2; Call 9/1/2010 (4)	3,000,000	3,000,000
City of Atlanta, Airport, Revenue Bonds, NATL-RE, 5.000%, 1/1/2012 A+/A1	150,000	156,995
City of Atlanta, Water, Revenue Bonds, NATL-RE FGIC, 5.500%, 11/1/2013 A/A1	100,000	112,104
Clayton County Housing Authority, Multi-Family Housing, Revenue Bonds, FNMA, 4.350%, 12/1/2011 AAA/NR (4)	200,000	202,334
East Point Building Authority, Water, Revenue Bonds, XLCA, 4.000%, 2/1/2013 NR/WR	35,000	35,441
Gainesville & Hall County Development Authority, Nursing Homes, Revenue Bonds, 5.000%, 11/15/2011 BBB+/NR	220,000	226,032
Gainesville & Hall County Development Authority, Nursing Homes, Revenue Bonds, 5.000%, 11/15/2012 BBB+/NR	230,000	240,162
Georgia Housing & Finance Authority, Single Family Housing, Revenue Bonds, GO OF AUTHORITY, 4.100%, 6/1/2011 AAA/NR	25,000	25,432
Gwinnett County Hospital Authority, Medical, Revenue Bonds, AGM, 3.000%, 7/1/2011 NR/Aa3	100,000	102,045

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

43

August 31, 2010

Schedule of Investments

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Georgia (continued)
Henry County Hospital Authority, Medical, Revenue Bonds, AMBAC, 5.750%, 7/1/2011 AA/Aa1; Call 10/1/2010	$1,020,000	$    1,043,001
Henry County Water & Sewerage Authority, Water, Revenue Bonds, NATL-RE, 0.550%, 2/1/2030 AAA/A-1/NR (4)	3,425,000	3,425,000
Macon-Bibb County Urban Development Authority, Facilities, Revenue Bonds, 0.830%, 11/1/2015 BBB+/A-2/NR; Call 9/1/2010 (4)	630,000	630,000
Main Street Natural Gas, Inc., General, Revenue Bonds, 5.000%, 9/15/2010 A/A2	1,990,000	1,992,328
Richmond County Development Authority, Higher Education, Revenue Bonds, 5.000%, 2/1/2011 NR/A2	195,000	197,014
Savannah Economic Development Authority, Medical, Revenue Bonds, 0.680%, 3/1/2018 NR/A2/VMIG1; Call 9/1/2010 (4)	1,860,000	1,860,000
		16,568,893
Hawaii — 0.1%
Hawaii State Department of Budget & Finance, Medical, Revenue Bonds, 5.250%, 7/1/2013 BBB+/A3; Call 10/18/2010	160,000	160,269
Illinois — 8.4%
Central Lake County Joint Action Water Agency, Water, Revenue Bonds, AMBAC, 5.250%, 5/1/2016 NR/Aa2; Call 5/1/2013	125,000	137,560
Central Lake County Joint Action Water Agency, Water, Revenue Bonds, NATL-RE, 4.000%, 5/1/2016 NR/Aa2; Call 5/1/2015	525,000	576,655
Chicago Public Building Commission, Facilities, Revenue Bonds, AMBAC, 4.000%, 3/1/2012 A/A1	100,000	103,756
Chicago Transit Authority, Transportation, Revenue Bonds, AMBAC, 4.000%, 6/1/2012 A/A1	150,000	155,771
City of Berwyn, General Obligation, GO UT, AMBAC, 4.000%, 12/1/2010 NR/WR	350,000	351,764
City of Berwyn, General Obligation, GO UT, AMBAC, 5.000%, 12/1/2013 NR/WR	1,730,000	1,868,400
City of Carbondale, General Obligation, GO UT, AMBAC, 4.500%, 12/1/2011 NR/WR	515,000	533,123
City of Chicago, Airport, Revenue Bonds, AMBAC, 4.500%, 1/1/2011 A-/A2	150,000	151,647
City of Chicago, Airport, Revenue Bonds, NATL-RE, 5.000%, 1/1/2011 A/A1	50,000	50,562
City of Springfield, General Obligation, GO UT, NATL-RE, 5.500%, 12/1/2010 AA/Aa2; Call 10/1/2010	600,000	602,334
Coles & Cumberland Counties, School District, GO UT, NATL-RE FGIC, 5.400%, 2/1/2011 NR/A1	225,000	228,645
Cook & Du Page Counties Combined School District No. 113A-Lemont, School District, GO UT, NATL-RE FGIC, 0.000%, 12/1/2011 A-/WR	35,000	33,976
Cook County School District No. 130 Blue Island, School District, GO, XLCA, 4.250%, 12/1/2013 NR/WR	500,000	534,670
Cook County School District No. 144 Prairie Hills, School District, GO UT, 5.250%, 12/1/2012 NR/A1	2,315,000	2,315,000
Cook County School District No. 144 Prairie Hills, School District, GO UT, 5.500%, 12/1/2013 NR/A1	1,000,000	1,000,000
Cook County School District No. 149 Dolton, School District, GO UT, AMBAC, 0.000%, 12/1/2012 NR/WR	300,000	289,008
Cook County School District No. 30 Northbrook-Glenview, School District, GO, NATL-RE, 0.000%, 11/1/2012 NR/Baa1	955,000	909,723
Du Page County Community Consolidated School District No. 89 Glen, General, GO, AMBAC, 3.750%, 2/1/2011 NR/WR	100,000	100,963
Grundy County School District No. 54 Morris, School District, GO UT, AMBAC, 5.250%, 12/1/2012 NR/WR; Call 12/1/2010	205,000	207,237
Illinois Department of Central Management Services, General, Certificate of Participation, AMBAC, 5.100%, 7/1/2011 NR/WR; Call 10/1/2010	100,000	100,284
Illinois Finance Authority, Higher Education, Revenue Bonds, 5.250%, 6/1/2013 A/Baa1; Call 10/1/2010	175,000	175,599
Illinois Finance Authority, Higher Education, Revenue Bonds, NATL-RE, 4.700%, 12/1/2010 A/Baa1; Call 10/1/2010	25,000	25,069
Illinois Finance Authority, Higher Education, Revenue Bonds, XLCA, 5.000%, 8/1/2015 A/WR	50,000	55,450
Illinois Finance Authority, Medical, Revenue Bonds, 3.875%, 5/1/2012 AA/A-1+/Aa2 (4)	900,000	937,953
Illinois Finance Authority, Medical, Revenue Bonds, 5.375%, 3/1/2011 A/Baa1; Call 10/1/2010	75,000	75,068
Illinois Finance Authority, Medical, Revenue Bonds, AMBAC, 5.100%, 8/15/2011 NR/WR; Call 10/1/2010	90,000	90,252
Illinois Finance Authority, Medical, Revenue Bonds, AMBAC, 5.500%, 8/1/2011 BBB/Baa2; Call 10/1/2010	225,000	225,720
Illinois Housing Development Authority, Multi-Family Housing, Revenue Bonds, GO, 4.000%, 1/1/2012 A+/A1	900,000	920,943
Illinois Housing Development Authority, Multi-Family Housing, Revenue Bonds, GO, 4.000%, 7/1/2012 A+/A1	235,000	240,673
Illinois Housing Development Authority, Multi-Family Housing, Revenue Bonds, GO, 4.100%, 1/1/2013 A+/A1	295,000	307,369
Illinois Housing Development Authority, Multi-Family Housing, Revenue Bonds, NATL-RE GO OF AUTH, 4.100%, 1/1/2014 A+/A1; Call 7/1/2013	145,000	151,777
Kendall Kane & Will Counties Community Unit School District No. 308, School District, GO UT, FSA, 0.000%, 10/1/2010 NR/Aa2	100,000	99,962
Lake County Community Consolidated School District No. 34-Antioch, School District, GO, NATL-RE, 3.950%, 12/1/2010 NR/Baa1	100,000	100,722
Lake County Community Unit School District No. 116-Round Lake, School District, GO UT, NATL-RE, 9.000%, 1/1/2012 NR/Baa1	425,000	461,359
Lake County Community Unit School District No. 116-Round Lake, School District, GO UT, NATL-RE, 9.000%, 1/1/2013 NR/Baa1	465,000	532,337
Lake County School District No. 38 Big Hollow, School District, GO UT, AMBAC, 0.000%, 2/1/2011 NR/WR	100,000	98,874

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

44

Marshall Funds

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Illinois (continued)
Lake County School District No. 38-Big Hallow, School District, GO UT, AMBAC, 0.000%, 2/1/2012 NR/WR	$   160,000	$       153,973
Lake County School District No. 38-Big Hallow, School District, GO UT, AMBAC, 0.000%, 2/1/2013 NR/WR	450,000	421,920
Macon County School District No. 61, School District, GO UT, 4.800%, 12/1/2011 NR/A1	65,000	67,963
Marion & Jefferson Counties Community High School District No. 600 Salem, School District, GO, NATL-RE FGIC, 0.000%, 11/1/2016 NR/WR	475,000	370,581
McLean & Dewitt Counties Community Unit School District No. 4, School District, GO UT, FSA, 5.250%, 12/1/2011 NR/Aa3	195,000	205,446
Regional Transit Authority, General, Revenue Bonds, 1.400%, 6/1/2025 A-1+/Aa3/P-1; Call 9/1/2010 (4)	2,000,000	2,000,000
St. Clair County School District No. 118 Belleville, School District, GO UT, RADIAN, 0.000%, 12/1/2011 NR/NR	185,000	181,659
St. Clair County School District No. 189 East. St. Louis, School District, GO UT, NATL-RE, 6.250%, 1/1/2011 NR/A2	230,000	233,767
State of Illinois, Development, Revenue Bonds, FSA, 5.500%, 12/15/2014 NR/Aa3; Call 12/15/2010	200,000	202,046
State of Illinois, General Obligation, GO UT, 3.000%, 4/15/2011 SP-1/NR	2,000,000	2,017,080
State of Illinois, General Obligation, GO UT, 5.000%, 1/1/2012 A+/A1	100,000	104,474
State of Illinois, General Obligation, GO UT, 5.250%, 10/1/2015 A+/A1; Call 10/1/2012	100,000	107,025
State of Illinois, General Obligation, GO UT, AGM, 5.375%, 10/1/2012 AAA/Aa3	400,000	429,796
Town of Cicero, General Obligation, GO UT, NATL-RE FGIC, 3.625%, 12/1/2010 A/WR	25,000	25,192
Town of Cicero, General Obligation, GO UT, XLCA, 5.000%, 1/1/2013 NR/WR (5)	135,000	139,605
Town of Cicero, General Obligation, GO UT, XLCA, 5.000%, 1/1/2014 NR/WR	210,000	218,389
University of Illinois, General, Certificate of Participation, AMBAC, 5.000%, 8/15/2011 NR/WR	50,000	51,649
University of Illinois, General, Certificate of Participation, AMBAC, 5.000%, 10/1/2012 AA-/Aa2	250,000	267,617
Village of Calumet Park, General Obligation, GO UT, AMBAC, 3.800%, 12/1/2015 NR/WR	255,000	261,951
Village of Cary, General, Special Tax, RADIAN, 4.400%, 3/1/2016 NR/NR (5)	510,000	509,362
Village of Glenwood, General Obligation, GO UT, AGM, 2.500%, 12/1/2012 NR/Aa3	170,000	172,229
Village of Glenwood, General Obligation, GO UT, AGM, 3.000%, 12/1/2013 NR/Aa3	140,000	143,619
Village of Glenwood, General Obligation, GO UT, AGM, 3.000%, 12/1/2014 NR/Aa3	165,000	169,170
Village of Melrose Park, General Obligation, GO UT, NATL-RE, 9.000%, 12/15/2011 NR/Baa1	110,000	120,280
Village of Melrose Park, General Obligation, GO UT, NATL-RE FGIC, 0.000%, 12/15/2014 NR/WR	100,000	84,681
Village of Sauk Village, General Obligation, GO UT, RADIAN, 5.350%, 12/1/2014 A/NR; Call 12/1/2012	175,000	185,458
Village of Villa Park, General Obligation, GO UT, AMBAC, 3.100%, 12/15/2013 NR/WR; Call 12/15/2010	410,000	410,660
Whiteside County Community Unit School District No. 6 Morrison, School District, GO UT, NATL-RE, 0.000%, 12/1/2011 AA-/Baa1	145,000	140,914
Will County Community School District No. 161 Summit Hill, School District, GO UT, NATL-RE FGIC, 0.000%, 1/1/2012 NR/WR	1,165,000	1,134,768
Will County Community Unit School District No. 201-U Crete-Monee, School District, GO UT, NATL-RE FGIC, 0.000%, 11/1/2012 A+/WR	100,000	97,301
Winnebago & Boone Counties School District No. 205 Rockford, School District, GO, AGM, 0.000%, 2/1/2015 AAA/NR (5)	450,000	393,412
		25,772,192
Indiana — 4.2%
Center Grove Community School Corp., General Obligation, GO UT, 2.000%, 12/30/2010 NR/NR	220,000	220,367
Center Grove Community School Corp., School District, GO UT, 2.000%, 12/30/2010 NR/NR	170,000	170,284
City of Carmel, Water, Revenue Bonds, AMBAC, 3.850%, 5/1/2013 NR/WR; Call 5/1/2011	150,000	151,841
City of Crawfordsville, Multi-Family Housing, Revenue Bonds, 0.500%, 1/1/2033 NR/NR; Call 9/1/2010 (4)	945,000	945,000
City of Fort Wayne, Water, Revenue Bonds, NATL-RE FGIC, 5.000%, 8/1/2011 A/Aa3; Call 10/1/2010	215,000	215,737
City of Indianapolis, Utilities, Revenue Bonds, NATL-RE, 5.500%, 10/1/2015 A/A2; Call 10/1/2011	150,000	156,756
City of Lawrence, Water, Revenue Bonds, 4.000%, 1/1/2012 A/NR	135,000	139,709
Clarksville High School Building Corp., School District, Revenue Bonds, NATL-RE FGIC, 4.500%, 7/15/2012 AA+/WR	100,000	105,652
Elkhart County Hospital Authority, Medical, Revenue Bonds, 4.750%, 8/15/2011 NR/A1; Call 10/1/2010	140,000	141,054
Gary Sanitation District, General, Special Tax, RADIAN, 5.000%, 2/1/2012 NR/NR	1,060,000	1,073,642
Indiana Bond Bank, Revenue Bonds, 3.000%, 2/1/2011 AA/NR	80,000	80,651
Indiana Bond Bank, Revenue Bonds, 3.000%, 2/1/2011 AA/NR	230,000	232,282
Indiana Development Finance Authority, Education, Revenue Bonds, 0.600%, 7/1/2026 NR/NR; Call 9/2/2010 (4)	100,000	100,000
Indiana Finance Authority, Education, Revenue Bonds, CIFG, 2.250%, 7/1/2025 NR/A2; Call 9/2/2010 (4)	2,000,000	2,000,000
Indiana Finance Authority, Education, Revenue Bonds, CIFG, 5.000%, 7/1/2012 NR/A2	100,000	106,304
Indiana Finance Authority, Medical, Revenue Bonds, 3.000%, 12/1/2011 AA/Aa2	645,000	662,125
Indiana Finance Authority, Medical, Revenue Bonds, 5.000%, 11/1/2011 NR/Aa3	500,000	522,905
Indiana Health Facility Financing Authority, Medical, Revenue Bonds, 0.600%, 2/1/2025 NR/Aa1; Call 9/1/2010 (4)	400,000	400,000
Indiana Health Facility Financing Authority, Medical, Revenue Bonds, 5.000%, 6/1/2012 NR/Aa2	850,000	911,404
Indiana Municipal Power Agency, Power, Revenue Bonds, NATL-RE, 6.000%, 1/1/2013 A+/A1	200,000	223,342
Indiana Port Commission, Development, Revenue Bonds, 4.100%, 5/1/2012 A/NR	1,000,000	1,038,880

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

45

August 31, 2010

Schedule of Investments

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Indiana (continued)
Indianapolis Local Public Improvement Bond Bank, Bond Bank, Revenue Bonds, NATL-RE, 5.000%, 7/1/2012 AA-/A1	$   765,000	$       814,082
Lawrence Central High School Building Corp., School District, Revenue Bonds, 0.000%, 7/1/2011 A/Baa1	5,000	4,715
Marion County Convention & Recreational Facilities Authority, General, Revenue Bonds, NATL-RE, 5.500%, 6/1/2012 A/Baa1; Call 6/1/2011	200,000	204,736
Merrillville Conservancy District, General Obligation, GO UT, NATL-RE, 4.900%, 7/15/2015 A/Baa1; Call 10/1/2010	200,000	203,494
Mount Vernon of Hancock County Multi-School Building Corp., School District, Revenue Bonds, 5.000%, 1/15/2013 A+/Baa1	250,000	270,510
South Bend Redevelopment District, General, Special Tax, AMBAC, 3.600%, 1/1/2011 NR/WR	50,000	50,293
St. Joseph County Hospital Authority, Medical, Revenue Bonds, 4.750%, 8/15/2012 AA-/Baa1; Call 10/1/2010	350,000	351,047
St. Joseph County Redevelopment District, General, Tax Allocation, 2.000%, 1/15/2012 A+/A1	100,000	100,457
Wheeler-Union Township School Building Corp., School District, Revenue Bonds, AGM, 4.550%, 7/15/2012 AAA/Aa3; Call 1/15/2011	100,000	101,339
Zionsville Middle School Building Corp., School District, Revenue Bonds, AMBAC, 4.850%, 7/5/2014 NR/WR; Call 7/5/2011	1,000,000	1,026,440
		12,725,048
Iowa — 1.7%
Ballard Community School District, Education, Revenue Bonds, 3.000%, 7/1/2011 A/NR	660,000	670,025
Dubuque Community School District, Education, Revenue Bonds, 2.750%, 7/1/2011 NR/NR	950,000	955,415
Fort Madison Community School District, Education, Revenue Bonds, 3.000%, 7/1/2011 A+/NR	200,000	203,054
Iowa Finance Authority, Higher Education, Revenue Bonds, NATL-RE, 6.500%, 12/1/2011 A/Baa1	2,425,000	2,551,585
Kirkwood Community College, Higher Education, GO UT, 3.000%, 6/1/2012 AA-/Aa2	190,000	195,518
Marshalltown Community School District, GO UT, 5.000%, 5/1/2011 NR/Baa1	50,000	50,999
Waukee Community School District, Education, Revenue Bonds, NATL-RE, 4.250%, 1/1/2014 NR/A1; Call 1/1/2012	600,000	621,522
		5,248,118
Kansas — 0.2%
City of Olathe, Medical, Revenue Bonds, 4.125%, 3/1/2013 A+/NR; Call 3/1/2012 (4)	100,000	103,533
Kansas Development Finance Authority, Medical, Revenue Bonds, 5.250%, 11/15/2011 NR/A2 (4)	150,000	154,337
Sumner County Unified School District No. 353, GO UT, FGIC, 4.625%, 9/1/2012 A/WR	240,000	240,000
Wyandotte County-Kansas City Unified Government, Power, Revenue Bonds, AMBAC, 0.000%, 9/1/2010 NR/WR	100,000	100,000
		597,870
Kentucky — 0.3%
City of Danville, Water, Revenue Bonds, 5.050%, 12/1/2010 NR/A1 (4)	175,000	176,614
Kentucky Economic Development Finance Authority, Medical, Revenue Bonds, 3.000%, 5/1/2011 AA-/NR	425,000	431,065
Kentucky Economic Development Finance Authority, Medical, Revenue Bonds, 4.000%, 5/1/2012 AA-/NR	350,000	366,124
Kentucky Interlocal School Transportation Association, General, Certificate of Participation, 3.500%, 3/1/2011 NR/Aa2	50,000	50,775
Kentucky State Property & Building Commission, Facilities, Revenue Bonds, 1.000%, 11/1/2010 A+/Aa2	30,000	30,031
		1,054,609
Louisiana — 2.3%
City of New Orleans, General Obligation, GO UT, FGIC, 5.125%, 12/1/2012 NR/A3	150,000	157,998
City of New Orleans, General Obligation, GO UT, FGIC, 6.500%, 12/1/2011 BBB/A3	425,000	448,481
City of New Orleans, General, Revenue Bonds, AGM, 5.500%, 12/1/2010 AAA/Aa3	100,000	101,259
City of New Orleans, Water, Revenue Bonds, FGIC, 5.000%, 6/1/2011 BBB-/A3; Call 10/1/2010	100,000	101,087
Jefferson Sales Tax District, General, Revenue Bonds, AMBAC, 5.250%, 12/1/2014 A+/WR; Call 12/1/2011	1,015,000	1,059,284
Jefferson Sales Tax District, General, Revenue Bonds, AMBAC, 5.500%, 12/1/2010 A+/WR	750,000	756,893
Louisiana Public Facilities Authority, General, Revenue Bonds, CIFG, 5.000%, 7/1/2011 NR/Baa2	75,000	76,462
Louisiana Public Facilities Authority, Medical, Revenue Bonds, 0.600%, 7/1/2021 NR/NR; Call 10/1/2010 (4)	790,000	790,000
Louisiana State Citizens Property Insurance Corp., General, Revenue Bonds, Assured Guaranty Corp., 3.000%, 6/1/2011 AAA/Aa3	990,000	1,002,563
Parish of Jefferson, General, Revenue Bonds, AMBAC, 5.000%, 11/1/2011 A+/Aa3	130,000	136,235
Plaquemines Parish School Board, Education, Revenue Bonds, AMBAC, 4.650%, 3/1/2012 NR/WR; Call 10/1/2010	785,000	794,781
Regional Transit Authority, General, Revenue Bonds, NATL-RE FGIC, 0.000%, 12/1/2012 A/WR	240,000	212,338
Regional Transit Authority, General, Revenue Bonds, NATL-RE FGIC, 0.000%, 12/1/2015 A/WR	275,000	223,968
State of Louisiana, General, Revenue Bonds, 1.050%, 6/1/2013 AA/Aa2; Call 12/1/2012 (4)	1,000,000	999,990
West Ouachita Parish School District, General, Revenue Bonds, 4.400%, 9/1/2011 AA-/Baa1; Call 10/1/2010	25,000	25,313
		6,886,652

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

46

Marshall Funds

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Maryland — 0.9%
City of Baltimore, General, Revenue Bonds, NATL-RE, 5.375%, 9/1/2012 A/Baa1; Call 10/1/2010	$     40,000	$         40,114
County of Anne Arundel, Multi-Family Housing, Revenue Bonds, FHLMC, 2.125%, 1/1/2013 AAA/NR; Call 1/1/2011	700,000	701,365
Maryland Community Development Administration, Single Family Housing, Revenue Bonds, 3.900%, 9/1/2011 NR/Aa2	230,000	236,421
Maryland Economic Development Corp., General, Revenue Bonds, 0.830%, 9/1/2028 NR/A2/VMIG1; Call 9/1/2010 (4)	1,195,000	1,195,000
Maryland Health & Higher Educational Facilities Authority, Education, Revenue Bonds, 0.830%, 9/1/2024 NR/A2; Call 9/1/2010 (4)	415,000	415,000
Maryland State Transportation Authority, Transportation, Revenue Bonds, NATL-RE FGIC, 0.000%, 7/1/2011 AA-/Aa3	50,000	49,377
		2,637,277
Massachusetts — 0.8%
Freetown Lakeville Regional School District, School District, GO UT, NATL-RE, 3.500%, 1/1/2011 A+/A1	100,000	100,898
Massachusetts Development Finance Agency, Higher Education, Revenue Bonds, 5.000%, 1/1/2012 A-/NR	125,000	131,236
Massachusetts Health & Educational Facilities Authority, Medical, Revenue Bonds, AGM, 5.250%, 6/1/2011 AAA/Aa3; Call 10/1/2010	330,000	331,106
Massachusetts Health & Educational Facilities Authority, Medical, Revenue Bonds, Assured Guaranty Corp., 3.000%, 11/15/2011 AAA/NR	450,000	457,830
Massachusetts Housing Finance Agency, Single Family Housing, Revenue Bonds, 3.950%, 6/1/2011 AA/Aa2 (4)	30,000	30,396
Massachusetts Municipal Wholesale Electric Co., Power, Revenue Bonds, NATL-RE, 5.000%, 7/1/2011 A/Baa1	100,000	103,060
Massachusetts Municipal Wholesale Electric Co., Power, Revenue Bonds, NATL-RE, 5.000%, 7/1/2011 A/A3	100,000	103,060
Massachusetts Municipal Wholesale Electric Co., Power, Revenue Bonds, NATL-RE, 5.000%, 7/1/2011 A/Baa1	425,000	438,005
Massachusetts Municipal Wholesale Electric Co., Power, Revenue Bonds, NATL-RE, 5.250%, 7/1/2014 A/Baa1; Call 1/1/2012	165,000	174,222
Massachusetts Municipal Wholesale Electric Co., Power, Revenue Bonds, NATL-RE, 5.250%, 7/1/2015 A/Baa1; Call 1/1/2012	650,000	687,128
		2,556,941
Michigan — 3.4%
Allen Park Public School District, School District, GO UT, Q-SBLF, 3.500%, 5/1/2011 AA-/Aa2	100,000	102,078
Alma Public Schools, General, GO UT, Q-SBLF, 5.000%, 5/1/2012 NR/Aa2; Call 11/1/2010	200,000	201,424
Charter Township of Redford, Water, Revenue Bonds, AMBAC, 4.800%, 4/1/2015 A/WR; Call 4/1/2011	275,000	275,784
City of Battle Creek, General Obligation, GO, AMBAC, 5.000%, 5/1/2014 AA-/Aa3	25,000	27,588
City of Detroit, Water, Revenue Bonds, NATL-RE, 5.000%, 7/1/2012 A/A1	850,000	898,195
City of Detroit, Water, Revenue Bonds, NATL-RE, 5.400%, 7/1/2011 A/Aa3	160,000	165,800
City of Detroit, Water, Revenue Bonds, NATL-RE, 5.500%, 7/1/2013 A/Aa3 (4)	625,000	687,550
City of Grand Haven, Utilities, Revenue Bonds, NATL-RE, 5.500%, 7/1/2014 A/Baa1	315,000	342,786
City of Marquette, Water, Revenue Bonds, AMBAC, 4.000%, 5/1/2013 NR/WR	200,000	204,402
City of Mount Pleasant, Water, Revenue Bonds, AMBAC, 4.850%, 12/1/2013 A+/A1; Call 12/1/2010	350,000	353,328
City of Mount Pleasant, Water, Revenue Bonds, AMBAC, 4.850%, 12/1/2014 A+/A1; Call 12/1/2010	370,000	373,323
City of Mount Pleasant, Water, Revenue Bonds, AMBAC, 4.850%, 12/1/2015 A+/A1; Call 12/1/2010	385,000	388,161
County of Grand Traverse, General Obligation, GO, NATL-RE, 4.100%, 5/1/2013 AA/Aa2; Call 11/1/2010	100,000	100,496
Detroit City School District, School District, GO UT, AGM, 5.000%, 5/1/2013 AAA/Aa2	1,000,000	1,074,920
Eastern Michigan University, Higher Education, Revenue Bonds, AMBAC, 6.000%, 6/1/2012 NR/A1; Call 10/1/2010	200,000	202,824
Eaton Rapids Building Authority, Facilities, GO, 3.000%, 3/1/2011 A+/NR	170,000	171,125
Eaton Rapids Building Authority, Facilities, GO, 3.000%, 3/1/2012 A+/NR	195,000	198,986
Garden City School District, School District, GO UT, Q-SBLF, 4.300%, 5/1/2011 AA-/Aa2	30,000	30,671
Hancock Public Schools, School District, GO UT, Q-SBLF, 4.450%, 5/1/2014 AA-/NR; Call 5/1/2012	310,000	327,096
Howell Public Schools, School District, GO UT, Q-SBLF, 5.250%, 5/1/2014 AA-/Aa2; Call 5/1/2011	375,000	386,662
Kalamazoo Hospital Finance Authority, Medical, Revenue Bonds, NATL-RE, 5.500%, 5/15/2012 NR/A2; Call 10/1/2010	25,000	25,091
Kent Hospital Finance Authority, Medical, Revenue Bonds, 4.000%, 7/15/2011 AA/Aa3	25,000	25,698
Michigan Municipal Bond Authority, General, Revenue Bonds, AGM, 5.000%, 6/1/2013 AAA/Aa3	250,000	269,855
Michigan Municipal Bond Authority, General, Revenue Bonds, AMBAC, 4.450%, 11/1/2011 NR/WR	50,000	50,339
Michigan Municipal Bond Authority, General, Revenue Bonds, AMBAC, 4.500%, 5/1/2015 A/WR; Call 5/1/2012	250,000	259,655
Michigan Municipal Bond Authority, General, Revenue Bonds, AMBAC, 4.700%, 11/1/2013 NR/WR; Call 10/1/2010	50,000	50,140
Michigan Municipal Bond Authority, General, Revenue Bonds, AMBAC, 5.500%, 11/1/2012 NR/WR; Call 10/1/2010	100,000	100,015
Michigan State Building Authority, General, Revenue Bonds, AMBAC, 5.000%, 10/15/2011 A+/Aa3 (4)	1,450,000	1,512,901
Michigan State Hospital Finance Authority, Medical, Revenue Bonds, 5.000%, 5/1/2012 AA-/A-1+/Aa2 (4)	150,000	161,130
Mona Shores Public Schools, School District, GO UT, Q-SBLF, 3.900%, 5/1/2014 AA-/Aa2; Call 5/1/2012	800,000	833,928

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

47

August 31, 2010

Schedule of Investments

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Michigan (continued)
Muskegon County Building Authority, General Obligation, GO, NATL-RE FGIC, 4.450%, 5/1/2013 AA/Aa3; Call 11/1/2011	$   300,000	$       311,277
Oakland University, Higher Education, Revenue Bonds, AMBAC, 5.000%, 5/15/2012 NR/A1	25,000	26,765
Southeastern Oakland County, Water, Revenue Bonds, 4.250%, 7/1/2015 AA+/A1; Call 7/1/2013	55,000	58,353
Taylor Tax Increment Finance Authority, General, Tax Allocation, FSA, 5.500%, 5/1/2012 AAA/Aa3; Call 5/1/2011	100,000	103,227
Utica Community Schools, School District, GO UT, Q-SBLF, 4.600%, 5/1/2014 AA/Aa2; Call 5/1/2011	25,000	25,556
Western Michigan University, Higher Education, Revenue Bonds, NATL-RE, 5.000%, 11/15/2010 A/A1	25,000	25,172
Wyoming Public Schools, School District, GO UT, NATL-RE, FGIC, 4.000%, 5/1/2011 A+/Aa3	10,000	10,219
		10,362,520
Minnesota — 0.4%
Clearbrook-Gonvick Independent School District No. 2311, School District, GO UT, School District Credit Program, 4.850%, 2/1/2018 AAA/NR; Call 2/1/2012	170,000	179,343
Minneapolis & St. Paul Housing & Redevelopment Authority, Medical, Revenue Bonds, 5.000%, 12/1/2014 BBB/A3; Call 12/1/2013	15,000	15,901
Minnesota Agricultural & Economic Development Board, Medical, Revenue Bonds, AGC, 4.000%, 2/15/2012 AAA/NR	500,000	520,285
New River Medical Center, Medical, Revenue Bonds, 2.000%, 12/1/2010 NR/NR	370,000	370,651
		1,086,180
Mississippi — 0.8%
Mississippi Business Finance Corp., Utilities, Revenue Bonds, 1.000%, 11/1/2010 A/A-1/NR; Call 11/1/2010 (4)	2,000,000	1,995,160
Mississippi Gulf Coast Regional Wastewater Authority, Water, Revenue Bonds, NATL-RE, 5.000%, 7/1/2011 NR/Baa1	100,000	103,618
State of Mississippi, General Obligation, GO UT, 5.000%, 11/1/2020 AA/Aa2; Call 11/1/2010	50,000	50,382
University of Southern Mississippi, General, Certificate of Participation, AGC, 2.000%, 9/15/2011 AAA/NR	75,000	75,398
University of Southern Mississippi, General, Certificate of Participation, AGC, 3.000%, 9/15/2012 AAA/NR	85,000	87,165
		2,311,723
Missouri — 2.1%
City of Branson, General, Revenue Bonds, 3.000%, 1/1/2013 A/NR	130,000	134,444
City of St. Louis, Airport, Revenue Bonds, AGM, 5.000%, 7/1/2014 AAA/Aa3	100,000	112,613
City of St. Louis, Airport, Revenue Bonds, NATL-RE FGIC, 5.125%, 7/1/2011 A/Baa1; Call 10/1/2010	500,000	504,040
City of St. Louis, Airport, Revenue Bonds, NATL-RE FGIC, 5.125%, 7/1/2012 A/Baa1; Call 10/1/2010	75,000	75,578
City of St. Louis, General Obligation, GO UT, AMBAC, 5.000%, 2/15/2012 NR/Aa3	25,000	26,578
Fort Zumwalt School District Improvement Corp., Education, Revenue Bonds, NATL-RE FGIC, 5.000%, 3/1/2015 NR/Aa3; Call 3/1/2014	25,000	27,626
Kansas City Industrial Development Authority, Development, Revenue Bonds, 4.000%, 9/1/2013 NR/NR	1,150,000	1,180,705
Kansas City School District Building Corp., Education, Revenue Bonds, FGIC, 5.000%, 2/1/2013 NR/WR	600,000	631,992
Missouri Development Finance Board, General, Revenue Bonds, 3.000%, 4/1/2011 A/NR	130,000	130,854
Missouri Joint Municipal Electric Utility Commission, Power, Revenue Bonds, NATL-RE, 5.000%, 1/1/2013 A/Baa1	355,000	378,845
Missouri State Health & Educational Facilities Authority, Medical, Revenue Bonds, 2.000%, 5/15/2011 A+/NR	340,000	342,458
Missouri State Health & Educational Facilities Authority, Medical, Revenue Bonds, 3.000%, 5/15/2012 A+/NR	500,000	513,045
Missouri State Health & Educational Facilities Authority, Medical, Revenue Bonds, AMBAC, 1.000%, 12/1/2036 A+/A2; Call 9/3/2010 (4)	1,100,000	1,100,000
Missouri State Health & Educational Facilities Authority, Medical, Revenue Bonds, AMBAC, 1.015%, 12/1/2036 A+/A2; Call 9/7/2010 (4)	500,000	500,000
Missouri State Health & Educational Facilities Authority, Medical, Revenue Bonds, CIFG, 1.099%, 12/1/2030 A+/A2; Call 9/7/2010 (4)	375,000	375,000
SCA Tax Exempt Trust, Multi-Family Housing, Revenue Bonds, FSA, 0.550%, 1/1/2030 AAA/A-1/NR (4)	500,000	500,000
		6,533,778
Montana — 0.2%
Gallatin County Rural Improvement District, General, Special Assessment, 3.000%, 7/1/2012 NR/NR	50,000	50,025
Gallatin County Rural Improvement District, General, Special Assessment, 3.500%, 7/1/2013 NR/NR	130,000	130,726
Montana Board of Housing, Single Family Housing, Revenue Bonds, GO, 4.250%, 12/1/2012 AA+/Aa1; Call 12/1/2011	70,000	70,351
Montana Facility Finance Authority, Medical, Revenue Bonds, 2.300%, 7/1/2012 NR/NR	400,000	401,852
		652,954
Nebraska — 0.1%
Douglas County Hospital Authority No. 2, Medical, Revenue Bonds, 3.000%, 1/1/2012 NR/NR	100,000	101,725
Lancaster County Hospital Authority No. 1, Medical, Revenue Bonds, 3.000%, 1/1/2012 NR/NR	250,000	254,313
		356,038

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

48

Marshall Funds

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Nevada — 1.2%
City of Henderson, Medical, Revenue Bonds, 4.000%, 7/1/2012 A/A2	$   225,000	$       233,939
City of North Las Vegas, General, Special Assessment, AMBAC, 3.875%, 12/1/2011 BBB+/WR	90,000	89,375
Clark County School District, School District, GO, NATL-RE FGIC, 5.375%, 6/15/2013 AA/Aa1; Call 6/15/2011	325,000	346,973
Clark County School District, School District, GO, NATL-RE FGIC, 5.375%, 6/15/2014 AA/Aa2; Call 6/15/2011	200,000	213,124
County of Clark, Airport, Revenue Bonds, 5.000%, 7/1/2012 A/A1	1,000,000	1,068,480
County of Clark, General Obligation, GO, AMBAC, 4.000%, 12/1/2012 AA+/Aaa	25,000	26,730
Henderson Redevelopment Agency, General, Tax Allocation, AMBAC, 4.750%, 10/1/2011 BBB+/WR	400,000	409,288
Las Vegas Redevelopment Agency, General, Tax Allocation, 6.000%, 6/15/2015 A/NR	250,000	277,642
North Las Vegas Special Assessment District No. 63, General, Special Assessment, AMBAC, 4.000%, 11/1/2012 A+/Aa2; Call 11/1/2010	45,000	46,534
Reno Redevelopment Agency, General, Tax Allocation, NATL-RE, 5.000%, 9/1/2012 A/Baa1; Call 10/1/2010	25,000	25,077
Sparks Redevelopment Agency, Development, Tax Allocation, 4.000%, 1/15/2012 A-/NR	500,000	511,225
Virgin Valley Water District, Water, Revenue Bonds, NATL-RE FGIC, 3.500%, 6/1/2014 NR/A1	535,000	557,893
		3,806,280
New Hampshire — 0.2%
City of Manchester, Airport, Revenue Bonds, 5.000%, 1/1/2011 A-/A3	265,000	267,645
New Hampshire Health & Education Facilities Authority, Medical, Revenue Bonds, 5.000%, 7/1/2014 A/NR	410,000	420,529
		688,174
New Jersey — 0.4%
Atlantic County Utilities Authority, Water, Revenue Bonds, AMBAC, 3.375%, 1/15/2011 NR/WR	25,000	25,279
City of Pleasantville, General Obligation, GO UT, NATL-RE, 4.500%, 10/1/2011 NR/A2; Call 10/1/2010	150,000	150,387
New Jersey Economic Development Authority, Facilities, Revenue Bonds, NATL-RE, 0.000%, 7/1/2013 A/A1	200,000	190,492
New Jersey Economic Development Authority, Facilities, Revenue Bonds, NATL-RE, 0.000%, 7/1/2014 A/A1	200,000	184,280
New Jersey Housing & Mortgage Finance Agency, Single Family Housing, Revenue Bonds, 3.750%, 10/1/2011 AA/Aa2	100,000	101,856
Roxbury Township School District, School District, GO UT, AGM, 4.125%, 9/1/2010 NR/Aa2	100,000	100,000
Salem County Improvement Authority, General Obligation, Revenue Bonds, NATL-RE FGIC, 3.500%, 5/1/2011 NR/WR	250,000	255,295
State of New Jersey, General, Certificate of Participation, 5.000%, 6/15/2011 AA-/Aa3	85,000	87,686
Township of Lyndhurst, General Obligation, GO UT, NATL-RE, FGIC, 4.700%, 5/1/2011 NR/A1	100,000	102,572
Township of Lyndhurst, General Obligation, GO UT, NATL-RE, FGIC, 4.700%, 5/1/2014 NR/A1; Call 5/1/2011	25,000	25,532
		1,223,379
New Mexico — 0.1%
County of Dona Ana, General, Revenue Bonds, AMBAC, 5.250%, 6/1/2012 NR/WR	5,000	5,203
Taos County, School District, Revenue Bonds, RADIAN, 4.000%, 10/1/2010 NR/A3	325,000	329,904
		335,107
New York — 1.5%
Albany County Airport Authority, Airport, Revenue Bonds, FSA, 4.700%, 12/15/2012 AAA/Aa3; Call 9/9/2010	200,000	201,148
City of New York, General Obligation, GO UT, 0.540%, 1/1/2017 NR/NR (4)	1,000,000	1,000,000
City of New York, General Obligation, GO UT, 5.000%, 12/1/2011 AA/Aa2	40,000	42,214
City of New York, General Obligation, GO UT, 5.250%, 6/1/2011 AA/Aa2	65,000	67,341
County of Erie, General Obligation, GO UT, NATL-RE, 5.000%, 12/1/2010 A/A2	300,000	302,730
County of Monroe, General Obligation, GO UT, NATL-RE, 4.000%, 6/1/2012 A/A3; Call 6/1/2011	200,000	204,436
Hauppauge Union Free School District, School District, GO UT, AGM, 4.125%, 8/1/2013 NR/Aa2; Call 8/1/2011	40,000	41,216
Long Island Power Authority, Power, Revenue Bonds, NATL-RE, 4.000%, 4/1/2011 A/Baa1 (4)	300,000	305,328
Metropolitan Transportation Authority, General, Revenue Bonds, NATL-RE FGIC, 4.000%, 11/15/2012 AA/Aa3; Call 11/15/2011	125,000	130,320
New York State Dormitory Authority, General, Revenue Bonds, AGM, 5.500%, 1/15/2014 AAA/Aa3; Call 7/15/2011	1,000,000	1,045,960
New York State Environmental Facilities Corp., Water, Revenue Bonds, 5.000%, 8/15/2013 AAA/Aaa; Call 10/1/2010	125,000	125,379
Utica Industrial Development Agency, Higher Education, Revenue Bonds, 0.420%, 7/15/2029 NR/A2/VMIG1; Call 9/1/2010 (4)	960,000	960,000
Village of Palmyra, General Obligation, GO UT, NATL-RE, 5.400%, 12/15/2011 A/Baa1; Call 12/15/2010	100,000	100,992
		4,527,064
North Carolina — 1.9%
North Carolina Capital Facilities Finance Agency, Higher Education, Revenue Bonds, XLCA, 5.000%, 4/1/2012 NR/WR	195,000	205,600
North Carolina Eastern Municipal Power Agency, Power, Revenue Bonds, 5.500%, 1/1/2012 A-/Baa1	10,000	10,640
North Carolina Medical Care Commission, Nursing Homes, Revenue Bonds, 2.000%, 1/1/2021 NR/A1/VMIG1; Call 9/1/2010 (4)	4,065,000	4,065,000

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

49

August 31, 2010

Schedule of Investments

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
North Carolina (continued)
North Carolina Medical Care Commission, Nursing Homes, Revenue Bonds, 2.000%, 12/1/2034 NR/A1/VMIG1; Call 9/1/2010 (4)	$1,400,000	$    1,400,000
University of North Carolina System, Higher Education, Revenue Bonds, AMBAC, 5.000%, 4/1/2011 NR/WR	40,000	40,679
		5,721,919
North Dakota — 0.8%
City of Carrington, General, Revenue Bonds, 1.350%, 2/1/2012 NR/NR; Call 10/1/2010	2,500,000	2,500,075
Ohio — 2.6%
Ansonia Local School District, School District, GO UT, NATL-RE, 5.000%, 12/1/2010 NR/Baa1	50,000	50,414
City of Akron, Water, Revenue Bonds, NATL-RE, 5.000%, 3/1/2011 NR/Baa1	150,000	151,958
City of Bowling Green, Higher Education, Revenue Bonds, 3.000%, 6/1/2012 BBB-/NR	100,000	101,566
City of Cleveland, General Obligation, GO, Assured Guaranty Corp., 2.250%, 12/1/2011 AAA/Aa3	15,000	15,263
City of Cleveland, General, Certificate of Participation, AMBAC, 0.000%, 11/15/2010 A/A2	100,000	99,765
City of Parma, General Obligation, GO, AMBAC, 5.450%, 12/1/2014 A+/A1	435,000	472,092
City of Parma, Medical, Revenue Bonds, 0.690%, 10/1/2029 A-/A-2/NR; Call 9/1/2010 (4)	2,845,000	2,845,000
City of Steubenville, Medical, Revenue Bonds, 2.000%, 10/1/2011 NR/A3	300,000	300,924
City of Toledo, Facilities, Special Assessment, 4.125%, 6/1/2012 NR/A3	1,250,000	1,293,325
City of Warrensville Heights, General Obligation, GO, 3.000%, 2/3/2011 NR/NR	1,000,000	1,006,360
County of Hamilton, Medical, Revenue Bonds, NATL-RE, 5.250%, 5/15/2011 A/Baa1; Call 11/15/2010	1,200,000	1,210,116
County of Knox, Medical, Revenue Bonds, RADIAN, 5.000%, 6/1/2012 NR/NR	20,000	20,097
County of Lorain, Medical, Revenue Bonds, 5.625%, 10/1/2012 AA-/A1; Call 10/1/2011	250,000	263,775
Ironton City School District, School District, GO UT, NATL-RE, 4.000%, 12/1/2011 NR/Baa1	150,000	154,039
Monroe County, General Obligation, GO, Assured Guaranty Corp., 2.000%, 12/1/2010 NR/Aa3	60,000	60,091
		8,044,785
Oklahoma — 0.2%
City of Moore, General Obligation, GO UT, NATL-RE, 5.750%, 4/1/2012 A/A1	700,000	744,051
Oregon — 1.1%
Port of Morrow, Pollution, Revenue Bonds, 1.500%, 2/1/2027 BBB/A-2/Baa1; Call 9/1/2010 (4)	3,360,000	3,360,000
Pennsylvania — 5.5%
Allegheny County Hospital Development Authority, Medical, Revenue Bonds, 1.350%, 8/1/2013 A+/Aa3; Call 2/1/2013 (4)	2,000,000	2,005,400
Allegheny County Industrial Development Authority, Pollution, Revenue Bonds, AMBAC, 4.050%, 9/1/2011 NR/Baa2 (4)	250,000	255,395
Allegheny County Port Authority, General, Revenue Bonds, NATL-RE FGIC, 5.500%, 3/1/2015 A/A2; Call 3/1/2011	500,000	515,945
Allegheny County Sanitation Authority, Water, Revenue Bonds, NATL-RE, 5.375%, 12/1/2015 A/Baa1; Call 12/1/2011	500,000	528,115
Allegheny County Sanitation Authority, Water, Revenue Bonds, NATL-RE, 5.750%, 12/1/2013 A/A1; Call 12/1/2010	25,000	25,536
Blair County Hospital Authority, Medical, Revenue Bonds, 2.375%, 11/15/2010 BBB+/NR	1,000,000	1,001,660
Borough of Sewickley, General Obligation, GO UT, AGM, 3.250%, 12/1/2011 AAA/Aa3; Call 10/1/2010	100,000	100,209
City of Philadelphia, Airport, Revenue Bonds, NATL-RE FGIC, 5.250%, 6/15/2014 A+/A2; Call 10/1/2010	90,000	90,275
County of Allegheny, General Obligation, GO UT, NATL-RE, 5.375%, 11/1/2014 A+/A1; Call 11/1/2012	235,000	256,392
County of Blair, General Obligation, GO UT, AMBAC, 5.375%, 8/1/2013 NR/WR	270,000	296,525
Crestwood School District, School District, GO UT, AGM, 4.000%, 3/1/2015 NR/Aa3; Call 9/1/2011	180,000	185,348
Cumberland County Municipal Authority, Nursing Homes, Revenue Bonds, 3.000%, 1/1/2011 NR/NR	500,000	501,480
Delaware County Authority, General, Revenue Bonds, 3.000%, 6/1/2012 BBB/NR (5)	1,320,000	1,338,401
Delaware Valley Regional Financial Authority, Facilities, Revenue Bonds, 5.500%, 7/1/2012 AA-/A2	350,000	373,828
Erie Sewer Authority, Utilities, Revenue Bonds, 3.000%, 12/1/2011 A-/NR	205,000	208,901
Governor Mifflin School District, School District, GO UT, AGM, 3.550%, 9/15/2012 NR/Aa3; Call 10/1/2010	150,000	150,309
Harrisburg Authority, Pollution, Revenue Bonds, AGM, 5.000%, 12/1/2013 AAA/Aa3 (4)	510,000	517,737
Hermitage Municipal Authority, Water, Revenue Bonds, NATL-RE, 3.650%, 2/1/2014 A/Baa1; Call 10/1/2010	200,000	200,402
Mount Pleasant Area School District, School District, GO UT, NATL-RE FGIC, 3.700%, 11/15/2015 A/WR; Call 11/15/2010	425,000	426,704
North Star School District, School District, GO UT, AGM, 3.375%, 3/15/2012 AAA/Aa3; Call 10/1/2010	100,000	100,223
Pennsylvania Higher Educational Facilities Authority, Higher Education, Revenue Bonds, 3.000%, 5/1/2031 NR/Aaa (4)	4,240,000	4,240,000
Pennsylvania Turnpike Commission, Transportation, Revenue Bonds, 1.200%, 12/1/2013 A+/Aa3; Call 6/1/2013 (4)	400,000	401,664
Philadelphia School District, School District, GO UT, AMBAC, 0.550%, 4/1/2015 AAA/A-1/NR (4)	2,000,000	2,000,000
Philadelphia School District, School District, GO, State Aid Withholding, 3.500%, 9/1/2010 A+/Aa2	275,000	275,000
Pittsburgh & Allegheny County Sports & Exhibition Authority, Facilities, Revenue Bonds, AMBAC, 5.250%, 2/1/2011 NR/WR; Call 10/1/2010	300,000	300,981

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

50

Marshall Funds

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Pennsylvania (continued)
Pittsburgh Public Parking Authority, Facilities, Revenue Bonds, AMBAC, 5.000%, 12/1/2012 NR/WR	$   400,000	$       427,564
St. Mary Hospital Authority, Medical, Revenue Bonds, 4.000%, 11/15/2011 A/A1	25,000	25,959
		16,749,953
Puerto Rico — 0.7%
Government Development Bank for Puerto Rico, Development, Revenue Bonds, 4.250%, 8/1/2014 BBB/NR; Call 8/1/2011 (5)	150,000	149,904
Government Development Bank for Puerto Rico, General, Revenue Bonds, 5.000%, 12/1/2010 BBB/A3	300,000	302,886
Government Development Bank for Puerto Rico, General, Revenue Bonds, 5.000%, 12/1/2012 BBB/A3	250,000	266,942
Government Development Bank for Puerto Rico, General, Revenue Bonds, 5.500%, 2/1/2012 BBB/NR; Call 11/1/2010	200,000	200,810
Puerto Rico Electric Power Authority, Power, Revenue Bonds, CIFG, 3.550%, 7/1/2012 BBB+/A3	50,000	52,127
Puerto Rico Electric Power Authority, Power, Revenue Bonds, XLCA, 5.000%, 7/1/2011 BBB+/A3	50,000	51,708
Puerto Rico Highway & Transportation Authority, Transportation, Revenue Bonds, NATL-RE-IBC, 5.500%, 7/1/2013 A/A2	250,000	272,275
Puerto Rico Housing Finance Authority, Multi-Family Housing, Revenue Bonds, 4.750%, 10/1/2011 BBB/NR; Call 10/1/2010	880,000	880,334
		2,176,986
Rhode Island — 0.4%
City of Cranston, General Obligation, GO UT, NATL-RE, 5.500%, 7/1/2011 A/A1; Call 1/1/2011	25,000	25,630
Rhode Island Health & Educational Building Corp., Education, Revenue Bonds, 3.750%, 5/15/2011 NR/A1	200,000	202,950
Rhode Island Health & Educational Building Corp., Higher Education, Revenue Bonds, 2.500%, 3/1/2012 A/NR	455,000	463,395
Rhode Island Health & Educational Building Corp., Medical, Revenue Bonds, 0.540%, 9/15/2033 A-/A-2/Aa2 (4)	400,000	400,000
		1,091,975
South Carolina — 0.5%
East Richland County, Water, Revenue Bonds, AMBAC, 3.750%, 1/1/2011 NR/Aa3	200,000	202,066
Piedmont Municipal Power Agency, Utilities, Revenue Bonds, NATL-RE, 5.250%, 1/1/2012 A/Baa1	500,000	525,160
Scago Educational Facilities Corp. for Calhoun School District, Education, Revenue Bonds, RADIAN, 4.000%, 12/1/2010 NR/WR	660,000	659,967
Trustees of the South Carolina Heritage Trust, General, Revenue Bonds, XLCA, 4.000%, 8/1/2012 NR/A1	25,000	26,192
		1,413,385
South Dakota — 0.5%
Puttable Floating Option Tax-Exempt Receipts, General Obligation, GO UT, 0.550%, 12/1/2022 NR/NR (4)	1,370,000	1,370,000
South Dakota Housing Development Authority, Multi-Family Housing, Revenue Bonds, FSA, 4.100%, 11/1/2012 NR/Aa3; Call 5/1/2012	175,000	179,305
South Dakota Housing Development Authority, Single Family Housing, Revenue Bonds, 4.050%, 5/1/2012 AAA/Aa1	50,000	51,363
		1,600,668
Tennessee — 4.7%
Blount County Public Building Authority, Facilities, Revenue Bonds, 0.630%, 12/1/2015 AAA/A-2/Aaa; Call 9/1/2010 (4)	1,525,000	1,525,000
Blount County Public Building Authority, Facilities, Revenue Bonds, 0.660%, 6/1/2034 AA+/Aa1; Call 9/1/2010 (4)	3,650,000	3,650,000
Blount County Public Building Authority, Facilities, Revenue Bonds, 0.760%, 6/1/2032 NR/Aa1; Call 9/1/2010 (4)	2,800,000	2,800,000
Chattanooga-Hamilton County Hospital Authority, Medical, Revenue Bonds, FSA, 3.000%, 10/1/2011 AAA/Aa3	500,000	508,310
Greeneville Industrial Development Board, Development, Revenue Bonds, 0.600%, 11/1/2011 AA-/A-1+/NR; Call 9/1/2010 (4)	200,000	200,000
Memphis Center City Revenue Finance Corp., Multi-Family Housing, Revenue Bonds, 0.500%, 4/1/2013 AAA/A-1+/NR; Call 9/1/2010 (4)	970,000	970,000
SCA Tax Exempt Trust, Multi-Family Housing, Revenue Bonds, 0.550%, 1/1/2030 AAA/A-1/NR; Call 9/13/2010 (4)	2,735,000	2,735,000
Sevier County Public Building Authority, Facilities, Revenue Bonds, 0.660%, 6/1/2024 NR/Aaa; Call 9/1/2010 (4)	2,025,000	2,025,000
		14,413,310
Texas — 5.2%
Brazoria County Municipal Utility District No. 18, General Obligation, GO UT, RADIAN, 4.500%, 9/1/2011 NR/NR; Call 10/1/2010	270,000	270,575
Capital Area Cultural Education Facilities Finance Corp., Education, Revenue Bonds, 5.000%, 4/1/2013 NR/WR/WR	380,000	401,227
Cinco Municipal Utility District No. 1, General Obligation, Revenue Bonds, NATL-RE FGIC, 3.750%, 12/1/2012 A/WR; Call 12/1/2011	225,000	231,129
City of Austin, Power, Revenue Bonds, NATL-RE, 5.250%, 11/15/2012 A+/A1	100,000	109,730

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

51

August 31, 2010

Schedule of Investments

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Texas (continued)
City of Denton, Utilities, Revenue Bonds, FSA, 5.300%, 12/1/2012 AAA/Aa2; Call 12/1/2010	$   200,000	$       202,490
City of Houston, General, Certificate of Participation, AMBAC, 7.500%, 12/15/2011 NR/WR	600,000	641,184
City of Port Arthur, General Obligation, GO, NATL-RE, 4.375%, 8/15/2014 A/Aa3; Call 10/1/2010	250,000	250,712
Coastal Bend Health Facilities Development Corp., Medical, Revenue Bonds, AGM, 0.865%, 7/1/2031 NR/Aa3; Call 9/2/2010 (4)	2,000,000	2,000,000
County of Webb, General Obligation, GO, AMBAC, 4.000%, 2/1/2011 AA-/Aa3	170,000	172,355
Denton Independent School District, GO UT, PSF, 0.580%, 8/15/2022 NR/NR; Call 8/15/2016 (4)	620,000	620,000
Euless Development Corp., General, Revenue Bonds, FSA, 4.000%, 9/15/2011 NR/Aa3	50,000	51,902
Fort Bend County Municipal Utility District No. 23, General Obligation, GO UT, AMBAC, 4.000%, 9/1/2012 BBB+/WR	100,000	103,038
Fort Bend County Municipal Utility District No. 81, General Obligation, GO UT, XLCA, 4.000%, 9/1/2014 A/WR; Call 9/1/2012	455,000	477,818
Harris County Cultural Education Facilities Finance Corp., Higher Education, Revenue Bonds, 4.000%, 11/15/2010 A-/NR	1,425,000	1,430,529
Harris County Health Facilities Development Corp., Medical, Revenue Bonds, AGM, 1.000%, 7/1/2031 AAA/Aa3; Call 9/2/2010 (4)	2,000,000	2,000,000
Harris County Health Facilities Development Corp., Medical, Revenue Bonds, NATL-RE, 5.375%, 10/1/2013 AA/Aa2; Call 10/1/2010	200,000	202,698
Harris County Municipal Utility District No. 238, General Obligation, GO UT, AGM, 5.800%, 4/1/2015 AAA/Aa3; Call 10/1/2010	230,000	230,906
Hays Memorial Health Facilities Development Corp., Medical, Revenue Bonds, 0.450%, 11/15/2014 AAA/A-2/NR (4)	2,500,000	2,500,000
Kings Manor Municipal Utility District, Utilities, GO UT, AGC, 2.000%, 9/1/2010 AAA/NR	100,000	100,000
Lower Colorado River Authority, Power, Revenue Bonds, NATL-RE FGIC, 5.000%, 5/15/2016 A/A2; Call 5/15/2011	1,000,000	1,033,270
Lufkin Health Facilities Development Corp., Medical, Revenue Bonds, 3.500%, 2/15/2011 BBB/Baa2	100,000	100,439
Lufkin Health Facilities Development Corp., Medical, Revenue Bonds, 3.600%, 2/15/2012 BBB/Baa2	405,000	408,937
Matagorda County Hospital District, Medical, Revenue Bonds, FHA-Insured Mortgage, 4.000%, 2/15/2011 BBB/NR	50,000	50,738
Montgomery County Municipal Utility District No. 7, General Obligation, GO UT, AMBAC, 4.700%, 3/1/2011 A+/WR; Call 10/1/2010	45,000	45,139
North Texas Tollway Authority, Transportation, Revenue Bonds, 5.000%, 1/1/2013 A-/A2 (4)	100,000	107,927
North Texas Tollway Authority, Transportation, Revenue Bonds, 5.500%, 1/1/2011 A-/A2 (4)	290,000	294,341
Puttable Floating Option Tax-Exempt Receipts, Water, Revenue Bonds, FSA, 0.580%, 12/1/2028 NR/NR (4)	651,000	651,000
Tarrant County Cultural Education Facilities Finance Corp., Education, Revenue Bonds, 3.000%, 7/1/2011 A+/A1	375,000	380,134
Tarrant County Cultural Education Facilities Finance Corp., Nursing Homes, Revenue Bonds, 5.000%, 11/15/2010 A-/NR	100,000	100,681
Texas State Public Finance Authority Charter School Finance Corp., Education, Revenue Bonds, ACA, 4.100%, 2/15/2011 BBB/NR	180,000	181,139
Texas Transportation Commission, Transportation, Revenue Bonds, 5.000%, 2/15/2011 BBB+/Baa1 (4)	110,000	111,729
Texas Water Development Board, Water, Revenue Bonds, 5.625%, 7/15/2011 AAA/Aaa; Call 10/1/2010	500,000	502,030
Trail of the Lakes Municipal Utility District, General Obligation, GO UT, AMBAC, 3.850%, 4/1/2012 BBB+/WR	50,000	51,374
		16,015,171
Utah — 0.3%
City of Brigham City, General, Special Assessment, 5.000%, 8/1/2011 NR/A1	120,000	123,386
City of Brigham City, General, Special Assessment, 5.000%, 8/1/2012 NR/A1	125,000	132,189
City of Herriman, General, Special Assessment, 3.000%, 11/1/2011 A/NR	370,000	374,947
City of Herriman, General, Special Assessment, 3.000%, 11/1/2012 A/NR	125,000	127,923
Farmington City Municipal Building Authority, Facilities, Revenue Bonds, AMBAC, 4.375%, 6/15/2012 NR/WR	165,000	166,747
		925,192
Vermont — 0.4%
Vermont Educational & Health Buildings Financing Agency, Higher Education, Revenue Bonds, AMBAC, 4.550%, 10/1/2012 A-/Baa1; Call 10/1/2010	720,000	721,562
Vermont Educational & Health Buildings Financing Agency, Medical, Revenue Bonds, FSA, 5.000%, 12/1/2010 AAA/Aa3 (4)	500,000	503,680
		1,225,242
Virgin Islands — 0.1%
Virgin Islands Public Finance Authority, General, Revenue Bonds, 4.000%, 10/1/2012 BBB/Baa2	300,000	313,083
Virgin Islands Public Finance Authority, General, Revenue Bonds, 5.000%, 10/1/2011 BBB/Baa2	100,000	103,290
		416,373
Virginia — 0.6%
Broadway Industrial Development Authority, Higher Education, Revenue Bonds, 3.850%, 4/1/2011 NR/Baa2	210,000	211,928
City of Covington, General Obligation, GO UT, 3.375%, 12/1/2012 SP-1+/MIG1; Call 12/1/2011	370,000	379,627

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

52

Marshall Funds

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Virginia (continued)
County of Pittsylvania, School District, GO UT, 3.500%, 7/15/2013 SP-1+/MIG1; Call 7/15/2011	$1,000,000	$    1,022,210
County of Spotsylvania, Water, Revenue Bonds, AGM, 4.250%, 6/1/2013 AAA/Aa3; Call 6/1/2011	150,000	154,504
Fairfax County Redevelopment & Housing Authority, Facilities, Revenue Bonds, 3.500%, 6/1/2013 AA+/NR; Call 6/1/2011	25,000	25,602
Loudoun County Industrial Development Authority, Facilities, Revenue Bonds, 3.000%, 3/1/2011 AA+/Aa1	50,000	50,672
		1,844,543
Washington — 0.7%
County of Skagit, General Obligation, GO, CIFG, 3.875%, 12/1/2011 NR/Aa3	25,000	25,985
Grays Harbor County Public Utility District No. 1, Power, Revenue Bonds, NATL-RE, FGIC, 5.000%, 7/1/2012 A/A1	50,000	53,405
King County Housing Authority, Housing, Revenue Bonds, CNTY GTD, 2.400%, 1/1/2013 AAA/NR; Call 1/1/2012	550,000	553,580
Kittitas County Public Utility District No. 1, Utilities, Revenue Bonds, 3.000%, 6/1/2011 NR/A1	75,000	75,868
Kittitas County Public Utility District No. 1, Utilities, Revenue Bonds, 3.000%, 6/1/2012 NR/A1	185,000	190,307
Washington Health Care Facilities Authority, Medical, Revenue Bonds, 5.000%, 1/1/2012 A/A2	780,000	812,378
Washington Health Care Facilities Authority, Medical, Revenue Bonds, AMBAC, 4.000%, 12/1/2010 BBB+/WR	400,000	402,888
		2,114,411
West Virginia — 0.3%
Berkeley County Public Service Sewer District, Water, Revenue Bonds, 4.375%, 10/1/2011 NR/NR	500,000	506,535
City of Wheeling, Utilities, Revenue Bonds, Assured Guaranty Corp., 2.500%, 6/1/2011 AAA/Aa3	200,000	202,114
City of Wheeling, Utilities, Revenue Bonds, Assured Guaranty Corp., 2.625%, 6/1/2012 AAA/Aa3	200,000	204,938
West Virginia Hospital Finance Authority, Medical, Revenue Bonds, Assured Guaranty Corp., 2.500%, 2/15/2011 AAA/Aa3	100,000	100,141
		1,013,728
Wisconsin — 3.0%
Belleville School District, School District, GO UT, AGM, 4.650%, 4/1/2013 AAA/Aa3; Call 4/1/2011	250,000	256,022
Blair-Taylor School District, School District, GO UT, NATL-RE, 5.000%, 3/1/2013 A/Baa1; Call 3/1/2012	320,000	334,643
City of Fond Du Lac, General Obligation, GO UT, NATL-RE FGIC, 3.250%, 3/1/2012 NR/Aa2	25,000	26,087
City of Weyauwega, General Obligation, GO UT, 4.100%, 3/1/2011 NR/NR; Call 10/1/2010	375,000	380,325
De Pere Unified School District, School District, GO UT, NATL-RE, FGIC, 4.150%, 10/1/2010 NR/Aa2	15,000	15,045
De Pere Unified School District, School District, GO UT, NATL-RE, FGIC, 4.150%, 10/1/2010 NR/Aa2	10,000	10,030
Green Bay Housing Authority, Housing, Revenue Bonds, 3.000%, 4/1/2011 NR/A3	190,000	191,797
Green Bay Housing Authority, Housing, Revenue Bonds, 3.000%, 4/1/2012 NR/A3	225,000	229,181
Kronenwetter Redevelopment Authority, General, Revenue Bonds, 4.500%, 5/1/2011 NR/NR; Call 11/1/2010	1,000,000	1,004,750
Ladysmith-Hawkins School District, GO UT, NATL-RE, FGIC, 4.400%, 9/1/2012 NR/WR	100,000	104,111
Milwaukee Redevelopment Authority, Higher Education, Revenue Bonds, AMBAC, 4.500%, 10/1/2010 NR/WR	100,000	100,286
Milwaukee Redevelopment Authority, Multi-Family Housing, Revenue Bonds, 0.610%, 2/1/2044 NR/NR; Call 9/1/2010 (4)	1,435,000	1,435,000
Pardeeville Area School District, GO UT, NATL-RE, 4.250%, 4/1/2011 NR/Aa3	205,000	209,235
Southeast Wisconsin Professional Baseball Park District, General, Revenue Bonds, NATL-RE, 4.600%, 12/15/2013 A/Baa1; Call 12/15/2011	45,000	47,373
Southeast Wisconsin Professional Baseball Park District, General, Revenue Bonds, NATL-RE, 5.000%, 12/15/2021 A/Baa1; Call 12/15/2011	90,000	95,203
Southeast Wisconsin Professional Baseball Park District, General, Revenue Bonds, NATL-RE, 5.100%, 12/15/2029 A/Baa1; Call 12/15/2011	125,000	132,385
Stoughton Area School District, School District, GO UT, NATL-RE FGIC, 4.500%, 4/1/2012 NR/Aa2; Call 4/1/2011	75,000	76,565
Stoughton Area School District, School District, GO UT, NATL-RE, FGIC, 5.500%, 4/1/2011 NR/Aa2	50,000	51,494
Village of Hustisford, Utilities, Revenue Bonds, 4.750%, 9/1/2012 NR/NR	135,000	140,793
Village of Mukwonago, Water, Revenue Bonds, 4.000%, 12/1/2012 NR/A1; Call 6/1/2011	85,000	86,578
Waunakee Community School District, School District, GO UT, NATL-RE, 4.000%, 4/1/2011 NR/Aa2	25,000	25,531
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 0.650%, 7/1/2024 NR/NR; Call 9/1/2010 (4)	1,800,000	1,800,000
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 3.000%, 6/1/2011 NR/A2	500,000	505,340
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 4.000%, 6/1/2012 NR/A2	500,000	519,585
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 4.500%, 5/1/2011 BBB+/NR	15,000	15,155
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 4.625%, 9/1/2011 BBB+/NR	565,000	581,114
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.000%, 2/15/2011 BBB+/NR	275,000	277,841
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.000%, 2/15/2012 BBB+/NR	155,000	159,543
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.450%, 7/1/2011 A-/A3	100,000	102,025
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, AMBAC, 5.000%, 12/15/2013 NR/A1	235,000	258,155
		9,171,192

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

53

August 31, 2010

Schedule of Investments

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Shares or Principal Amount		Value
Municipals (continued)
Wyoming — 0.0%
Sweetwater County Improvement Projects Joint Powers Board, General, Revenue Bonds, NATL-RE, 5.000%, 12/15/2011 A/Baa1; Call 6/15/2011		$   100,000		$       103,264
Total Municipals (identified cost $277,906,173)				279,049,458
Short-Term Investments — 11.6%
Commercial Paper — 1.6%
Indiana — 1.1%
City of Whiting, 0.850%, 9/7/2010 A-1+/P-1		3,500,000		3,500,000
Washington — 0.5%
Port Bellingham Industrial Development, 0.850%, 9/7/2010 A-1+/P-1		1,500,000		1,500,000
Total Commercial Paper				5,000,000
Mutual Funds — 2.7%
Marshall Tax-Free Money Market Fund, Class I, 0.385% (13)		8,142,745		8,142,745
Short-Term Municipals — 7.3%
California — 0.7%
California Municipal Finance Authority, Development, Revenue Bonds, 1.000%, 9/1/2010 BBB/A-2/NR (4)		$2,005,000		2,005,000
Folsom Public Financing Authority, General, Revenue Bonds, 2.000%, 9/1/2010 A-/NR		250,000		250,000
				2,255,000
Colorado — 0.0%
Consolidated Bell Mountain Ranch Metropolitan District, Facilities, GO, AGM, 2.500%, 12/1/2010 AAA/NR		100,000		100,285
Illinois — 1.0%
State of Illinois, General Obligation, GO UT, 3.000%, 6/14/2011 SP-1/NR		3,000,000		3,029,670
Indiana — 0.4%
Fishers Redevelopment Authority, Development, Revenue Bonds, 4.000%, 1/15/2011 AA/NR		700,000		707,266
St. Joseph County Redevelopment District, General, Tax Allocation, 2.000%, 1/15/2011 A+/A1		400,000		400,708
				1,107,974
Iowa — 1.3%
Iowa Higher Education Loan Authority, Student Loan, Revenue Notes, 2.500%, 5/20/2011 SP-1/NR		2,000,000		2,017,700
Iowa Higher Education Loan Authority, Student Loan, Revenue Notes, 5.000%, 5/20/2011 NR/NR		2,000,000		2,000,300
				4,018,000
Louisiana — 0.1%
Louisiana Housing Finance Agency, General, Revenue Bonds, 2.000%, 12/1/2010 NR/A1		200,000		200,392
Massachusetts — 0.1%
Massachusetts Health & Educational Facilities Authority, Medical, Revenue Bonds, Assured Guaranty Corp., 2.500%, 11/15/2010 AAA/NR		200,000		200,486
Michigan — 0.4%
Michigan Municipal Bond Authority, General, Revenue Notes, 5.000%, 3/21/2011 SP-1/NR		1,300,000		1,301,365
Minnesota — 0.0%
Minnesota Agricultural & Economic Development Board, Medical, Revenue Bonds, AGC, 3.000%, 2/15/2011 AAA/NR		150,000		151,485
Montana — 0.0%
Gallatin County Rural Improvement District, General, Special Assessment, 2.500%, 7/1/2011 NR/NR		75,000		74,999
Nebraska — 0.1%
Douglas County Hospital Authority No. 2, Medical, Revenue Bonds, 2.000%, 1/1/2011 NR/NR		100,000		100,299
Lancaster County Hospital Authority No. 1, Medical, Revenue Bonds, 2.000%, 1/1/2011 NR/NR		150,000		150,449
				250,748
Nevada — 0.1%
Sparks Redevelopment Agency, Development, Tax Allocation, 4.000%, 1/15/2011 A-/NR		430,000		433,302
New Jersey — 0.1%
Alexandria Board of Education, School District, GO UT, 3.000%, 11/18/2010 NR/NR		162,000		162,612
New York — 0.7%
City of Syracuse, General Obligation, GO UT, 2.000%, 9/30/2010 NR/NR		2,000,000		2,000,860

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

54

Marshall Funds

Ultra Short Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Short-Term Investments (continued)
Short-Term Municipals (continued)
Ohio — 1.7%
Greater Cleveland Regional Transit Authority, Transportation, Revenue Notes, 2.000%, 12/22/2010 NR/NR	$2,000,000	$    2,005,720
Three Rivers Local School District, School District, GO UT, 2.500%, 11/1/2010 NR/NR	2,145,000	2,148,582
Township of Tiffin, General Obligation, GO, 1.500%, 12/15/2010 NR/MIG1	1,000,000	1,001,570
		5,155,872
Rhode Island — 0.2%
City of East Providence, General Obligation, GO UT, 4.000%, 5/26/2011 NR/NR	600,000	608,880
Texas — 0.3%
City of Richardson, General Obligation, GO, 1.500%, 6/15/2011 AAA/A-1/Aa1; Call 6/15/2011 (4)	1,005,000	1,005,000
West Virginia — 0.1%
City of Beckley, Higher Education, Revenue Notes, 3.500%, 12/17/2010 NR/MIG3; Call 10/1/2010	435,000	434,956
Wisconsin — 0.0%
City of Two Rivers, General Obligation, GO UT, Assured Guaranty Corp., 2.000%, 4/1/2011 AAA/NR	40,000	40,216
Total Short-Term Municipals		22,532,102
Total Short-Term Investments (identified cost $35,655,816)		35,674,847
Total Investments — 102.7% (identified cost $313,561,989)		314,724,305
Other Assets and Liabilities — (2.7)%		(8,415,663	)
Total Net Assets — 100.0%		$306,308,642

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

55

August 31, 2010

Schedule of Investments

Short-Term Income Fund

Description	Principal Amount	Value
Asset-Backed Securities — 9.5%
Automobiles — 7.1%
DaimlerChrysler Auto Trust, Class A3A, (Series 2007-A), 5.000%, 2/8/2012	$   358,800	$     360,183
DaimlerChrysler Auto Trust, Class A4, (Series 2006-C), 4.980%, 11/8/2011	387,099	387,416
Fifth Third Auto Trust, Class A4A, (Series 2008-1), 4.810%, 1/15/2013	1,500,000	1,540,179
Ford Credit Auto Owner Trust, Class A3, (Series 2009-D), 2.170%, 10/15/2013	1,250,000	1,269,226
Honda Auto Receivables Owner Trust, Class A3, (Series 2010-2), 1.340%, 3/18/2014	500,000	504,957
Nissan Auto Receivables Owner Trust, Class A3, (Series 2009-A), 3.200%, 2/15/2013	1,000,000	1,019,169
USAA Auto Owner Trust, Class A3, (Series 2009-1), 3.020%, 6/15/2013	1,202,865	1,220,929
USAA Auto Owner Trust, Class A4, (Series 2006-4), 4.980%, 10/15/2012	866,947	871,392
World Omni Auto Receivables Trust, Class A3, (Series 2009-A), 3.330%, 5/15/2013	1,000,000	1,018,742
World Omni Auto Receivables Trust, Class A3, (Series 2010-A), 1.340%, 12/16/2013	1,000,000	1,008,112
		9,200,305
Credit Cards — 2.0%
Chase Issuance Trust, Class A, (Series 2007-A15), 4.960%, 9/17/2012	1,500,000	1,502,640
GE Capital Credit Card Master Note Trust, Class A, (Series 2010-3), 2.210%, 6/15/2016	1,000,000	1,023,115
		2,525,755
Other Financial — 0.4%
Countrywide Asset-Backed Certificates, Class A1, (Series 2007-QH2), 0.504%, 4/25/2037 (4)(6)(7)	843,021	508,818
Total Asset-Backed Securities (identified cost $12,407,098)		12,234,878
Collateralized Mortgage Obligations — 9.1%
Federal Home Loan Mortgage Corporation — 0.2%
5.250%, 1/15/2034, (Series 3014)	282,160	287,832
Government National Mortgage Association — 1.7%
2.866%, 2/16/2020, (Series 2003-48)	195,791	197,639
3.206%, 4/16/2018, (Series 2003-72)	9,785	9,830
3.590%, 11/16/2017, (Series 2004-78)	93,558	93,656
4.408%, 1/16/2025, (Series 2004-103)	1,000,000	1,025,589

Description	Principal Amount	Value
Collateralized Mortgage Obligations (continued)
Government National Mortgage Association (continued)
4.419%, 5/16/2034, (Series 2007-46)	$   827,419	$       858,196
		2,184,910
Private Sponsor — 7.2%
Banc of America Funding Corp., Class 1A12, (Series 2006-6), 5.750%, 8/25/2036	686,038	677,663
Banc of America Funding Corp., Class 1A3, (Series 2007-C), 5.680%, 5/20/2036 (4)	983,890	956,217
Chase Mortgage Finance Corp., Class A3, (Series 2006-S4), 6.000%, 12/25/2036	992,156	987,972
Countrywide Alternative Loan Trust, Class 1A2, (Series 2004-J9), 4.586%, 10/25/2034	111,765	110,961
Countrywide Home Loan Mortgage Pass-Through Trust, Class 2A2A, (Series 2006-HYB1), 5.329%, 3/20/2036 (4)	185,024	181,090
First Horizon Asset Securities, Inc., Class 1A1, (Series 2005-1), 5.000%, 3/25/2035	905,943	912,069
GMAC Mortgage Corporation Loan Trust, Class 2A2, (Series 2006-AR2), 5.286%, 5/19/2036 (4)	833,791	111,164
GSR Mortgage Loan Trust, Class 2A4, (Series 2005-AR5), 2.972%, 10/25/2035 (4)	632,670	573,498
JP Morgan Alternative Loan Trust, Class 2A4, (Series 2006-A5), 5.850%, 10/25/2036 (4)	1,875,794	1,246,992
JP Morgan Mortgage Trust, Class 2A2, (Series 2005-S3), 5.500%, 1/25/2021	542,878	539,616
JP Morgan Mortgage Trust, Class 3A1, (Series 2007-A2), 5.823%, 4/25/2037 (4)	765,141	738,176
Lehman Mortgage Trust, Class 5A1, (Series 2006-2), 5.500%, 4/25/2036	806,545	800,529
PHH Alternative Mortgage Trust, Class 1A1, (Series 2007-2), 0.374%, 5/25/2037 (4)	245,019	233,937
Residential Funding Mortgage Securities, Class 2A2, (Series 2006-SA3), 5.966%, 9/25/2036 (4)	401,649	321,256
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR7), 5.514%, 5/25/2036 (4)	613,749	496,849
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR8), 3.808%, 4/25/2036 (4)	411,829	388,469
		9,276,458
Total Collateralized Mortgage Obligations (identified cost $13,128,592)		11,749,200

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

56

Marshall Funds

Short-Term Income Fund (continued)

Description	Principal Amount	Value
Commercial Mortgage Securities — 16.8%
Private Sponsor — 16.8%
Banc of America Commercial Mortgage, Inc., Class A2, (Series 2007-2), 5.634%, 4/10/2049 (4)	$1,100,000	$    1,141,423
Banc of America Commercial Mortgage, Inc., Class A2, (Series 2007-3), 5.837%, 6/10/2049 (4)	1,225,000	1,284,547
Bear Stearns Commercial Mortgage Securities, Class A1, (Series 2007-BBA8), 0.346%, 3/15/2022 (4)(6)(7)	844,123	814,617
Commercial Mortgage Pass-Through Certificates, Class A2, (Series 2006-FL12), 0.376%, 12/15/2020 (4)(6)(7)	1,258,685	1,196,050
Commercial Mortgage Pass-Through Certificates, Class A3, (Series 2004-LB3A), 5.090%, 7/10/2037	1,250,000	1,277,235
Credit Suisse First Boston Mortgage Securities Corp., Class A3, (Series 2005-C1), 4.813%, 2/15/2038	1,494,685	1,541,310
Credit Suisse Mortgage Capital Certificates, Class A1, (Series 2006-TF2A), 0.376%, 10/15/2021 (4)(6)(7)	713,468	678,705
Credit Suisse Mortgage Capital Certificates, Class A1, (Series 2007-TFLA), 0.346%, 2/15/2022 (4)(6)(7)	1,030,570	954,327
Greenwich Capital Commercial Funding Corp., Class A2, (Series 2007-GG9), 5.381%, 3/10/2039	1,264,316	1,308,933
Greenwich Capital Commercial Funding Corp., Class A3, (Series 2005-GG3), 4.569%, 8/10/2042	1,600,000	1,646,088
GS Mortgage Securities Corp. II, Class A3, (Series 2007-EOP), 0.475%, 3/6/2020 (4)(6)(7)	1,400,000	1,311,290
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1B, (Series 2006-FL1A), 0.396%, 2/15/2020 (4)(6)(7)	1,235,307	1,179,439
JP Morgan Chase Commercial Mortgage Securities Corp., Class A2, (Series 2007-LD12), 5.827%, 2/15/2051	900,000	943,057
JP Morgan Chase Commercial Mortgage Securities Corp., Class A4, (Series 2004-CB8), 4.404%, 1/12/2039	1,300,000	1,358,031
LB-UBS Commercial Mortgage Trust, Class A2, (Series 2007-C6), 5.845%, 7/15/2040	870,570	908,848
LB-UBS Commercial Mortgage Trust, Class AAB, (Series 2006-C1), 5.139%, 2/15/2031	925,000	989,841

Description	Principal Amount	Value
Commercial Mortgage Securities (continued)
Private Sponsor (continued)
Lehman Brothers Commercial Mortgage Trust, Class A1, (Series 2007-LLFA), 0.576%, 6/15/2022 (4)(6)(7)	$1,487,887	$    1,378,251
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class A2, (Series 2006-2), 5.878%, 6/12/2046	1,000,000	1,014,606
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class ASB, (Series 2006-2), 6.071%, 6/12/2046 (4)	750,000	817,640
Total Commercial Mortgage Securities (identified cost $21,209,533)		21,744,238
Corporate Bonds & Notes — 46.2%
Aerospace/Defense — 1.3%
Boeing Co., 1.875%, 11/20/2012 (1)	500,000	509,902
Systems 2001 Asset Trust LLC, 6.664%, 9/15/2013 (6)(7)	1,054,947	1,167,827
		1,677,729
Auto Manufacturers — 0.6%
Daimler Finance North America LLC, 5.875%, 3/15/2011	810,000	831,932
Banks — 13.6%
ANZ National Int’l, Ltd./London, 2.375%, 12/21/2012 (6)(7)	1,000,000	1,013,938
Banco Santander Chile, 2.875%, 11/13/2012 (6)(7)	500,000	507,775
Bank of America Corp., 7.375%, 5/15/2014	1,300,000	1,485,227
Barclays Bank PLC, 2.500%, 1/23/2013 (1)	1,250,000	1,273,519
BB&T Corp., 6.500%, 8/1/2011	1,500,000	1,574,968
Citigroup, Inc., 6.000%, 12/13/2013 (1)	1,265,000	1,365,755
GMAC, LLC., 7.500%, 12/31/2013	528,000	544,500
Goldman Sachs Group, Inc., 5.250%, 10/15/2013	1,300,000	1,407,962
HSBC Bank PLC, 1.625%, 8/12/2013 (6)(7)	1,000,000	1,000,519
JPMorgan Chase & Co., 3.700%, 1/20/2015	1,700,000	1,781,309
Morgan Stanley, 5.050%, 1/21/2011	1,500,000	1,525,134
National City Corp., 4.000%, 2/1/2011 (1)	1,075,000	1,092,469
Regions Bank, Birmingham, AL, 3.250%, 12/9/2011	1,000,000	1,035,461
Santander U.S. Debt SA Unipersonal, 2.485%, 1/18/2013 (6)(7)	1,000,000	985,284
UBS AG of Stamford, 2.250%, 8/12/2013	1,000,000	1,005,350
		17,599,170
Beverages — 0.8%
Anheuser-Busch InBev Worldwide, Inc., 3.000%, 10/15/2012	1,000,000	1,032,345

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

57

August 31, 2010

Schedule of Investments

Short-Term Income Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Biotechnology — 0.8%
Life Technologies Corp., 3.375%, 3/1/2013	$1,000,000	$    1,029,474
Building Materials — 1.2%
CRH America, Inc., 6.950%, 3/15/2012 (5)	1,495,000	1,604,489
Computers — 0.8%
Hewlett-Packard Co., 2.950%, 8/15/2012 (1)	1,000,000	1,039,587
Diversified Financial Services — 7.3%
American Express Travel Related Services Co., Inc., 5.250%, 11/21/2011 (6)(7)	1,475,000	1,528,191
BlackRock, Inc., 2.250%, 12/10/2012	900,000	922,821
Credit Suisse USA, Inc., 6.125%, 11/15/2011	1,225,000	1,299,533
International Lease Finance Corp., 6.500%, 9/1/2014 (6)(7)	1,500,000	1,545,000
Invesco, Ltd., 5.625%, 4/17/2012	1,325,000	1,394,128
Lehman Brothers Holdings, Inc., 5.000%, 1/14/2011 (2)(12)	1,100,000	236,500
Merrill Lynch & Co., Inc., 6.050%, 8/15/2012 (1)	1,350,000	1,449,066
TD Ameritrade Holding Corp., 4.150%, 12/1/2014	940,000	992,341
		9,367,580
Electric — 1.8%
Alliant Energy Corp., 4.000%, 10/15/2014	1,200,000	1,259,602
FPL Group Capital, Inc., 5.625%, 9/1/2011	1,000,000	1,046,570
		2,306,172
Electronics — 0.8%
Agilent Technologies, Inc., 4.450%, 9/14/2012	1,000,000	1,053,270
Healthcare-Products — 1.6%
Boston Scientific Corp., 4.500%, 1/15/2015	1,200,000	1,220,641
Medtronic, Inc., 1.500%, 4/15/2011	850,000	855,313
		2,075,954
Healthcare-Services — 0.9%
Roche Holdings, Inc., 4.500%, 3/1/2012 (6)(7)	1,050,000	1,105,020
Home Furnishings — 1.0%
Whirlpool Corp., 5.500%, 3/1/2013	1,150,000	1,236,251
Household Products/Wares — 0.4%
Fortune Brands, Inc., 4.875%, 12/1/2013	425,000	458,030
Insurance — 8.0%
Berkshire Hathaway Finance Corp., 4.000%, 4/15/2012 (1)	1,500,000	1,578,309
Berkshire Hathaway, Inc., 2.125%, 2/11/2013 (1)	2,000,000	2,058,766

Description/Credit Ratings (8)	Shares or Principal Amount	Value
Corporate Bonds & Notes (continued)
Insurance (continued)
Hartford Financial Services Group, Inc., 5.250%, 10/15/2011	$1,250,000	$    1,295,455
HSB Capital I, 1.436%, 7/15/2027 (4)	2,430,000	1,874,988
MetLife, Inc., 2.375%, 2/6/2014	1,180,000	1,185,622
Metropolitan Life Global Funding I, 2.500%, 1/11/2013 (6)(7)	1,000,000	1,022,644
Prudential Financial, Inc., 2.750%, 1/14/2013	1,300,000	1,320,420
		10,336,204
Iron/Steel — 1.0%
ArcelorMittal, 5.375%, 6/1/2013 (1)	1,200,000	1,280,305
Media — 1.0%
Time Warner Cable, Inc., 6.200%, 7/1/2013	1,100,000	1,239,909
Oil & Gas — 1.0%
Nabors Industries, Inc., 0.940%, 5/15/2011	1,350,000	1,341,562
Pharmaceuticals — 0.7%
Pfizer, Inc., 4.450%, 3/15/2012	800,000	844,132
Telecommunications — 0.8%
Cellco Partnership / Verizon Wireless Capital LLC, 5.250%, 2/1/2012 (1)	1,000,000	1,061,726
Transportation — 0.8%
CSX Corp., 5.750%, 3/15/2013	1,000,000	1,101,404
Total Corporate Bonds & Notes (identified cost $59,314,959)		59,622,245
Municipals — 2.0%
Illinois — 2.0%
State of Illinois, General Obligation, GO UT, 3.080%, 7/1/2012 A+/A1	1,000,000	1,006,890
State of Illinois, General Obligation, GO UT, 4.071%, 1/1/2014 A+/A1	1,525,000	1,542,980
Total Municipals (identified cost $2,524,857)		2,549,870
Mutual Funds — 6.8%
Eaton Vance Institutional Senior Loan Fund, 4.120%	518,134	4,563,011
Fidelity Floating Rate High Income Fund, 4.220%	437,151	4,170,423
Total Mutual Funds (identified cost $8,848,108)		8,733,434
U.S. Government & U.S. Government Agency Obligations — 4.7%
Federal Home Loan Mortgage Corporation — 1.7%
5.500%, 8/20/2012 (1)	$2,000,000	2,190,096
U.S. Treasury Bonds & Notes — 3.0%
0.750%, 8/15/2013	1,925,000	1,927,707
1.000%, 10/31/2011	2,000,000	2,015,312
		3,943,019
Total U.S. Government & U.S. Government Agency Obligations (identified cost $5,956,601)		6,133,115

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

58

Marshall Funds

Short-Term Income Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
U.S. Government Agency-Mortgage Securities — 0.6%
Federal National Mortgage Association — 0.3%
7.000%, 12/1/2015	$     59,705	$         64,403
7.500%, 9/1/2015	86,987	94,883
9.500%, 12/1/2024	46,417	53,343
9.500%, 1/1/2025	18,593	21,368
9.500%, 1/1/2025	25,920	29,889
10.000%, 7/1/2020	33,586	38,892
11.000%, 12/1/2015	125	134
		302,912
Government National Mortgage Association — 0.3%
7.500%, 8/15/2037	338,279	376,751
9.000%, 12/15/2019	35,783	40,939
		417,690
Total U.S. Government Agency-Mortgage Securities (identified cost $667,603)		720,602
Short-Term Investments — 13.1%
Collateral Pool Investment for Securities on Loan — 8.3%
(See Note 2 of the Financial Statements)		10,676,116
Repurchase Agreement — 3.2%
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $4,168,220 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 8/24/2015, with a market value of $4,252,219 (at amortized cost)	4,168,193	4,168,193
Short-Term Municipals — 1.6%
California — 1.6%
California Municipal Finance Authority, Development, Revenue Bonds, 1.000%, 9/1/2010 BBB/A-2/NR (4)	2,100,000	2,100,000
Total Short-Term Investments (identified cost $16,944,309)		16,944,309
Total Investments — 108.8% (identified cost $141,001,660)		140,431,891
Other Assets and Liabilities — (8.8)%		(11,391,660	)
Total Net Assets — 100.0%		$129,040,231

Short-Intermediate Bond Fund

Description	Principal Amount	Value
Collateralized Mortgage Obligations — 2.7%
Private Sponsor — 2.7%
Chase Mortgage Finance Corp., Class 7A1, (Series 2007-A2), 5.860%, 7/25/2037 (4)	$  2,135,322	$    2,068,454
JP Morgan Mortgage Trust, Class 2A1, (Series 2006-A3), 5.541%, 5/25/2036 (4)	2,134,126	1,887,773

Description	Principal Amount	Value
Collateralized Mortgage Obligations (continued)
Private Sponsor (continued)
PHH Alternative Mortgage Trust, Class 1A1, (Series 2007-2), 0.374%, 5/25/2037 (4)	$  1,013,871	$       968,016
Total Collateralized Mortgage Obligations (identified cost $5,169,348)		4,924,243
Commercial Mortgage Securities — 10.5%
Private Sponsor — 10.5%
Bear Stearns Commercial Mortgage Securities, Class AM, (Series 2007-PW17), 5.915%, 6/11/2050 (4)	2,000,000	1,794,910
Commercial Mortgage Pass-Through Certificates, Class A2, (Series 2006-FL12), 0.376%, 12/15/2020 (4)(6)(7)	1,730,692	1,644,569
Credit Suisse Mortgage Capital Certificates, Class A1, (Series 2007-TFLA), 0.346%, 2/15/2022 (4)(6)(7)	1,258,722	1,165,599
Credit Suisse Mortgage Capital Certificates, Class AM, (Series 2007-C5), 5.869%, 9/15/2040 (4)	6,000,000	4,298,538
GS Mortgage Securities Corp. II, Class A2, (Series 2007-EOP), 0.425%, 3/6/2020 (4)(6)(7)	1,500,000	1,426,245
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1, (Series 2007-FL1A), 0.651%, 7/15/2019 (4)(6)(7)	3,365,263	2,884,269
Lehman Brothers Commercial Mortgage Trust, Class A1, (Series 2007-LLFA), 0.576%, 6/15/2022 (4)(6)(7)	5,207,605	4,823,878
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class AM, (Series 2007-9), 5.856%, 9/12/2049 (4)	1,000,000	873,127
Total Commercial Mortgage Securities (identified cost $21,447,946)		18,911,135
Corporate Bonds & Notes — 35.1%
Banks — 9.9%
Abbey National Treasury Services PLC/London, 3.875%, 11/10/2014 (6)(7)	1,500,000	1,529,523
ANZ National Int’l, Ltd./London, 2.375%, 12/21/2012 (6)(7)	2,000,000	2,027,876
BB&T Corp., 3.850%, 7/27/2012	2,000,000	2,095,902
Citigroup, Inc., 4.750%, 5/19/2015 (1)	1,000,000	1,031,266
Commonwealth Bank of Australia, 5.000%, 10/15/2019 (6)(7)	1,500,000	1,622,637
Credit Suisse/New York, 3.450%, 7/2/2012	2,000,000	2,072,318

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

59

August 31, 2010

Schedule of Investments

Short-Intermediate Bond Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Banks (continued)
Goldman Sachs Group, Inc., 6.000%, 6/15/2020	$  1,500,000	$    1,618,849
Morgan Stanley, 4.000%, 7/24/2015 (1)	1,520,000	1,528,732
Rabobank Nederland NV, 3.200%, 3/11/2015 (6)(7)	1,200,000	1,242,678
Santander Issuances SA Unipersonal, 6.500%, 8/11/2019 (4)(6)(7)	1,500,000	1,577,279
Santander U.S. Debt SA Unipersonal, 1.333%, 3/30/2012 (4)(6)(7)	1,500,000	1,478,639
		17,825,699
Building Materials — 1.8%
CRH America, Inc., 6.000%, 9/30/2016	3,000,000	3,300,417
Diversified Financial Services — 4.0%
American General Finance Corp., 5.375%, 10/1/2012 (1)	2,500,000	2,287,500
American Honda Finance Corp., 6.700%, 10/1/2013 (6)(7)	2,000,000	2,288,288
General Electric Capital Corp., 5.500%, 1/8/2020 (1)	1,600,000	1,754,256
Lehman Brothers Holdings, Inc., 6.000%, 7/19/2012 (2)(12)	4,000,000	860,000
		7,190,044
Food — 0.9%
Kraft Foods, Inc., 5.375%, 2/10/2020 (1)	1,500,000	1,670,099
Healthcare-Products — 1.1%
Boston Scientific Corp., 4.500%, 1/15/2015	2,000,000	2,034,402
Insurance — 7.1%
Berkshire Hathaway, Inc., 0.834%, 2/11/2013 (4)	2,000,000	2,010,970
Berkshire Hathaway, Inc., 3.200%, 2/11/2015	1,500,000	1,585,453
Genworth Life Institutional Funding Trust, 5.875%, 5/3/2013 (6)(7)	2,000,000	2,104,578
HSB Capital I, 1.436%, 7/15/2027 (4)	4,000,000	3,086,400
Metropolitan Life Global Funding I, 0.927%, 7/13/2011 (4)(6)(7)	1,500,000	1,503,144
Progressive Corp., 6.700%, 6/15/2037 (4)	1,300,000	1,236,645
Prudential Financial, Inc., 3.875%, 1/14/2015 (1)	1,100,000	1,147,431
		12,674,621
Iron/Steel — 1.2%
ArcelorMittal, 5.375%, 6/1/2013 (1)	2,000,000	2,133,842
Media — 3.4%
Comcast Corp., 4.950%, 6/15/2016 (1)	2,000,000	$    2,212,730

Description/Credit Ratings (8)	Principal Amount	Value
Corporate Bonds & Notes (continued)
Media (continued)
NBC Universal, Inc., 5.150%, 4/30/2020 (6)(7)	$  2,000,000	$    2,156,880
Time Warner, Inc., 4.700%, 1/15/2021	1,650,000	1,735,130
		6,104,740
Mining — 1.5%
Anglo American Capital PLC, 9.375%, 4/8/2019	2,000,000	2,723,560
Oil & Gas — 1.1%
NuStar Logistics LP, 4.800%, 9/1/2020	2,000,000	2,034,050
Pipelines — 2.4%
Enterprise Products Operating LLC, 5.200%, 9/1/2020	2,000,000	2,161,020
Kinder Morgan Energy Partners LP, 5.625%, 2/15/2015 (1)	2,000,000	2,234,372
		4,395,392
Real Estate Investment Trusts — 0.7%
ProLogis, 6.250%, 3/15/2017	1,200,000	1,164,469
Total Corporate Bonds & Notes (identified cost $63,964,459)		63,251,335
Municipals — 1.2%
Illinois — 1.2%
State of Illinois, General Obligation, GO UT, 6.200%, 7/1/2021 A+/A1	2,000,000	2,081,420
Total Municipals (identified cost $1,999,423)		2,081,420
U.S. Government & U.S. Government Agency Obligations — 36.2%
U.S. Treasury Bonds & Notes — 36.2%
1.125%, 6/15/2013 (1)	5,000,000	5,061,730
1.375%, 11/15/2012 (1)	20,000,000	20,365,620
1.500%, 12/31/2013 (1)	7,000,000	7,160,783
2.250%, 1/31/2015 (1)	5,000,000	5,230,080
2.500%, 6/30/2017 (1)	5,000,000	5,197,655
2.750%, 5/31/2017 (1)	6,000,000	6,334,686
2.750%, 2/15/2019 (1)	10,000,000	10,394,530
3.500%, 5/15/2020 (1)	5,000,000	5,448,830
Total U.S. Government & U.S. Government Agency Obligations (identified cost $63,861,841)		65,193,914
U.S. Government Agency-Mortgage Securities — 8.7%
Federal Home Loan Mortgage Corporation — 5.8%
4.500%, 9/15/2040 (5)	10,000,000	10,490,620
Federal National Mortgage Association — 2.9%
4.000%, 9/15/2040 (5)	5,000,000	5,178,905
Total U.S. Government Agency-Mortgage Securities (identified cost $15,582,617)		15,669,525

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

60

Marshall Funds

Short-Intermediate Bond Fund (continued)

Description	Principal Amount	Value
Short-Term Investments — 56.5%
Collateral Pool Investment for Securities on Loan — 43.6%
(See Note 2 of the Financial Statements)		$  78,363,278
Repurchase Agreement — 12.9%
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $23,240,895 on 9/1/2010, collateralized by U.S. Government Agency Obligations with various maturities to 3/15/2016, with a market value of $23,705,693 (at amortized cost)	$23,240,746	23,240,746
Total Short-Term Investments (identified cost $101,604,024)		101,604,024
Total Investments — 150.9% (identified cost $273,629,658)		271,635,596
Other Assets and Liabilities — (50.9)%		(91,672,695	)
Total Net Assets — 100.0%		$179,962,901

Intermediate Tax-Free Fund

Description/Credit Ratings (8)	Principal Amount	Value
Municipals — 92.4%
Alabama — 0.5%
Alabama State Board of Education, Higher Education, Revenue Bonds, 4.375%, 10/1/2017 NR/A1	$   200,000	$       219,152
Alabama State Board of Education, Higher Education, Revenue Bonds, 4.500%, 10/1/2018 NR/A1	210,000	232,443
Alabama State Board of Education, Higher Education, Revenue Bonds, 4.750%, 10/1/2019 NR/A1; Call 10/1/2018	220,000	244,596
Alabama State Board of Education, Higher Education, Revenue Bonds, 5.000%, 10/1/2020 NR/A1; Call 10/1/2018	230,000	257,522
Alabama State Board of Education, Higher Education, Revenue Bonds, 5.250%, 10/1/2021 NR/A1; Call 10/1/2018	140,000	158,052
Alabama State Board of Education, Higher Education, Revenue Bonds, 5.375%, 10/1/2022 NR/A1; Call 10/1/2018	105,000	118,588
Baldwin County Board of Education, School District, Revenue Bonds, AMBAC, 5.000%, 7/1/2018 A+/Aa3; Call 7/1/2017	350,000	399,171
County of Jefferson, Water, Revenue Bonds, FSA, 5.250%, 2/1/2011 AAA/Aa3; Call 10/1/2010	300,000	299,031
		1,928,555
Alaska — 0.3%
Alaska International Airports System, Airport, Revenue Bonds, NATL-RE, 5.000%, 10/1/2026 A/Aa3; Call 10/1/2016	1,000,000	1,063,430
Alaska Student Loan Corp., Student Loan, Revenue Bonds, Guaranteed Student Loans, 5.000%, 6/1/2018 AAA/NR; Call 6/1/2015 (9)	270,000	286,821
		1,350,251
Arizona — 4.4%
Arizona Health Facilities Authority, Medical, Revenue Bonds, 5.000%, 1/1/2020 A+/NR; Call 1/1/2017	900,000	967,005
Arizona School Facilities Board, General, Certificate of Participation, 5.750%, 9/1/2019 A+/A1; Call 9/1/2018	690,000	820,210
Arizona State University, Higher Education, Revenue Bonds, 6.250%, 7/1/2028 AA-/A1; Call 7/1/2018	500,000	595,670
City of Goodyear, Utilities, Revenue Bonds, 5.000%, 7/1/2022 A-/A2; Call 7/1/2020	205,000	219,961
City of Goodyear, Utilities, Revenue Bonds, 5.000%, 7/1/2023 A-/A2; Call 7/1/2020	265,000	282,792
City of Goodyear, Utilities, Revenue Bonds, 5.000%, 7/1/2024 A-/A2; Call 7/1/2020	80,000	84,973
City of Goodyear, Utilities, Revenue Bonds, 5.125%, 7/1/2025 A-/A2; Call 7/1/2020	345,000	367,311
Gila County Unified School District No. 10-Payson, School District, GO UT, 5.000%, 7/1/2019 NR/Aa3; Call 7/1/2018 (4)	500,000	577,585

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

61

August 31, 2010

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Arizona (continued)
Gila County Unified School District No. 10-Payson, School District, GO UT, 5.000%, 7/1/2020 NR/Aa3; Call 7/1/2018 (4)	$   600,000	$       684,042
Glendale Industrial Development Authority, Development, Revenue Bonds, 5.000%, 5/15/2035 A-/NR; Call 5/15/2020	500,000	508,425
Maricopa County Elementary School District No. 28-Kyrene Elementary, School District, GO UT, MBIA, 5.000%, 7/1/2013 NR/Aa1	125,000	139,724
Maricopa County Elementary School District No. 8-Osborn, School District, GO UT, 6.000%, 7/1/2024 A/NR; Call 7/1/2016	300,000	333,336
Maricopa County Industrial Development Authority, Medical, Revenue Bonds, 5.000%, 7/1/2016 A/A2; Call 10/1/2010	90,000	90,149
Maricopa County Industrial Development Authority, Single Family Housing, Revenue Bonds, FNMA/GNMA/FHLMC, 5.450%, 3/1/2039 NR/Aaa; Call 9/1/2016 (4)(9)	12,573	12,648
Phoenix Civic Improvement Corp., Airport, Revenue Bonds, 5.000%, 7/1/2020 AA-/Aa3; Call 7/1/2018	600,000	682,692
Phoenix Civic Improvement Corp., District, General, Revenue Bonds, MBIA, 0.000%, 7/1/2013 AA/Aa3	1,145,000	1,104,696
Phoenix Civic Improvement Corp., General, Revenue Bonds, NATL-RE FGIC, 0.000%, 7/1/2013 AA/Aa3	320,000	314,170
Phoenix Civic Improvement Corp., Transportation, Revenue Bonds, NATL-RE-IBC FSA, 5.000%, 7/1/2025 NR/NR; Call 9/15/2010	115,000	115,304
Phoenix Civic Improvement Corp., Water, Revenue Bonds, MBIA, 5.250%, 7/1/2016 AAA/Aa2	135,000	161,150
Pima County Industrial Development Authority, Development, Revenue Bonds, 5.250%, 7/1/2031 AA/Aa2; Call 7/1/2019	1,700,000	1,811,061
Pima County Industrial Development Authority, Education, Revenue Bonds, 6.375%, 7/1/2028 NR/Baa3; Call 7/1/2018	320,000	292,486
Pinal County Elementary School District No. 4 Casa Grande Elementary, School District, GO UT, NATL-RE, 4.000%, 7/1/2016 NR/A1	215,000	231,776
Rio Nuevo Multipurpose Facilities District, General, Revenue Bonds, Assured Guaranty Corp., 5.000%, 7/15/2015 AAA/Aa3	1,075,000	1,194,271
Scottsdale Industrial Development Authority, Medical, Revenue Bonds, 5.000%, 9/1/2018 A-/A3	250,000	274,127
Scottsdale Industrial Development Authority, Medical, Revenue Bonds, 5.250%, 9/1/2030 A-/A3; Call 9/1/2013 (5)	635,000	647,846
State of Arizona, General, Certificate of Participation, AGM, 5.250%, 10/1/2024 AAA/Aa3; Call 10/1/2019	2,000,000	2,255,200
University Medical Center Corp., Medical, Revenue Bonds, 6.250%, 7/1/2029 BBB+/Baa1; Call 7/1/2019	160,000	177,616
University Medical Center Corp., Medical, Revenue Bonds, GO, 5.250%, 7/1/2014 BBB+/Baa1	500,000	538,875
Yuma Municipal Property Corp., Water, Revenue Bonds, XLCA, 5.000%, 7/1/2023 A+/A1; Call 7/1/2017	1,950,000	2,152,351
Yuma Municipal Property Corp., Water, Revenue Bonds, XLCA, 5.000%, 7/1/2025 A+/A1; Call 7/1/2017	1,000,000	1,087,190
		18,724,642
Arkansas — 0.2%
Conway Health Facilities Board, Medical, Revenue Bonds, 5.000%, 8/1/2018 BBB+/NR	885,000	953,189
California — 6.3%
ABC Unified School District, School District, GO UT, MBIA, 5.000%, 2/1/2021 A+/Baa1	500,000	544,440
Anaheim Public Financing Authority, Power, Revenue Bonds, AMBAC, 4.500%, 10/1/2015 NR/WR	350,000	361,862
California Infrastructure & Economic Development Bank, Power, Revenue Bonds, 5.750%, 2/1/2039 A/A1; Call 2/1/2015	600,000	634,596
California Infrastructure & Economic Development Bank, Power, Revenue Bonds, 6.250%, 2/1/2039 A/A1; Call 2/1/2015	500,000	540,860
California Pollution Control Financing Authority, Pollution, Revenue Bonds, FGIC, 4.750%, 12/1/2023 BBB+/A3; Call 6/1/2017 (9)	630,000	628,727
California Statewide Communities Development Authority, Medical, Revenue Bonds, 5.000%, 8/15/2021 A+/A1; Call 8/15/2016	80,000	83,766
City & County of San Francisco, General Obligation, GO UT, 4.625%, 6/15/2030 AA/Aa1; Call 6/15/2015	350,000	362,037
Delhi Unified School District, School District, GO UT, AMBAC, 0.000%, 8/1/2019 NR/WR (5)	645,000	419,366
Fontana Unified School District, School District, GO UT, 0.000%, 12/1/2012 SP-1+/MIG1	1,500,000	1,443,750
Fresno Unified School District, School District, GO UT, MBIA, 5.300%, 2/1/2014 A+/Baa1	290,000	318,881
Fresno Unified School District, School District, GO UT, MBIA, 5.800%, 2/1/2014 A+/Baa1	125,000	139,489
Fresno Unified School District, School District, GO UT, MBIA, 6.000%, 8/1/2026 A+/Baa1	1,400,000	1,609,160
Hawthorne School District, School District, GO UT, 4.000%, 11/15/2010 SP-1+/NR	1,250,000	1,256,100
Jurupa Community Services District, Facilities, Certificate of Participation, 5.000%, 9/1/2029 AA-/NR; Call 9/1/2020	375,000	402,765
Lake Tahoe Unified School District, School District, GO UT, NATL-RE FGIC, 0.000%, 8/1/2016 A+/Aa3	575,000	475,508
Lake Tahoe Unified School District, School District, GO UT, NATL-RE FGIC, 0.000%, 8/1/2017 A+/Aa3	650,000	510,718
Los Angeles Unified School District, School District, GO UT, 5.000%, 7/1/2024 AA-/Aa2; Call 7/1/2019	225,000	253,892
Murrieta Valley Unified School District Public Financing Authority, School District, GO UT, NATL-RE FGIC, 0.000%, 9/1/2020 A+/Aa2	500,000	321,115

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

62

Marshall Funds

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
California (continued)
Oxnard School District, School District, GO UT, MBIA, 5.750%, 8/1/2022 A+/Baa1; Call 2/1/2022	$   100,000	$       114,747
Pajaro Valley Unified School District, School District, GO UT, AGM, 0.000%, 8/1/2027 AAA/Aa2	2,220,000	904,583
Pajaro Valley Unified School District, School District, GO UT, AGM, 0.000%, 8/1/2028 AAA/Aa2	2,750,000	1,044,230
Palo Alto Unified School District, School District, GO UT, 0.000%, 8/1/2017 AAA/Aa1	490,000	397,777
Pioneer Union Elementary School District, General, Certificate of Participation, NATL-RE, 5.000%, 8/1/2021 A+/Baa1; Call 8/1/2016	315,000	355,452
Pleasant Valley School District-Ventura County, School District, GO UT, MBIA, 5.850%, 2/1/2020 A+/Baa1	50,000	58,045
Pomona Unified School District, School District, GO UT, MBIA, 6.550%, 8/1/2029 A/Baa1	200,000	238,218
San Gorgonio Memorial Health Care District, Medical, GO UT, 6.500%, 8/1/2014 NR/A1	230,000	251,139
San Gorgonio Memorial Health Care District, Medical, GO UT, 6.500%, 8/1/2015 NR/A1	310,000	339,028
Santa Barbara County College Elementary School District, School District, GO UT, 0.000%, 8/1/2026 AA/NR	135,000	59,188
Santa Barbara County College Elementary School District, School District, GO UT, 0.000%, 8/1/2027 AA/NR	365,000	147,507
Santa Barbara County College Elementary School District, School District, GO UT, 0.000%, 8/1/2029 AA/NR	335,000	117,880
Santa Barbara County College Elementary School District, School District, GO UT, 0.000%, 8/1/2031 AA/NR	470,000	143,933
Santa Barbara County College Elementary School District, School District, GO UT, 0.000%, 8/1/2033 AA/NR	575,000	153,778
Santa Monica Community College District, General Obligation, GO UT, NATL-RE, 0.000%, 8/1/2017 AA/Aa1; Call 8/1/2015	775,000	584,846
Semitropic Improvement District, Water, Revenue Bonds, XLCA, 4.250%, 12/1/2022 AA/WR; Call 12/1/2016	50,000	50,959
Semitropic Improvement District, Water, Revenue Bonds, XLCA, 5.500%, 12/1/2022 AA/WR; Call 12/1/2014	655,000	733,639
Sierra View Local Health Care District, Medical, Revenue Bonds, 3.800%, 7/1/2017 NR/NR	370,000	371,313
Sierra View Local Health Care District, Medical, Revenue Bonds, 4.700%, 7/1/2016 NR/NR	250,000	262,718
Sierra View Local Health Care District, Medical, Revenue Bonds, 4.875%, 7/1/2018 NR/NR; Call 7/1/2017	650,000	674,212
Sierra View Local Health Care District, Medical, Revenue Bonds, 5.250%, 7/1/2022 NR/NR; Call 7/1/2017	1,000,000	1,052,010
Sierra View Local Health Care District, Medical, Revenue Bonds, 5.250%, 7/1/2023 NR/NR; Call 7/1/2017	250,000	261,350
Stockton Unified School District, GO UT, 4.000%, 2/1/2011 SP-1+/NR; Call 10/1/2010	400,000	400,664
Tahoe Forest Hospital District, General Obligation, GO UT, 5.500%, 8/1/2027 NR/Aa3; Call 8/1/2018	1,345,000	1,492,156
Tahoe Forest Hospital District, General Obligation, GO UT, 5.500%, 8/1/2035 NR/Aa3; Call 8/1/2018	1,000,000	1,072,780
Twin Rivers Unified School District, School District, GO UT, 0.000%, 4/1/2014 A+/SP-1+/NR	1,100,000	999,361
University of California, Higher Education, Revenue Bonds, AGM, 5.000%, 5/15/2018 AAA/Aa1; Call 5/15/2013	250,000	280,650
Vallejo City Unified School District, School District, GO UT, MBIA, 5.000%, 2/1/2013 A/Baa1	100,000	103,836
Vallejo City Unified School District, School District, GO UT, MBIA, 5.400%, 2/1/2015 A/Baa1	275,000	289,735
Vallejo City Unified School District, School District, GO UT, MBIA, 5.900%, 2/1/2017 A/Baa1	60,000	66,532
Vallejo City Unified School District, School District, GO UT, MBIA, 5.900%, 2/1/2018 A/Baa1	50,000	55,464
Vallejo City Unified School District, School District, GO UT, MBIA, 5.900%, 8/1/2018 A/Baa1	350,000	390,432
Vallejo City Unified School District, School District, GO UT, MBIA, 5.900%, 8/1/2025 A/Baa1	725,000	774,880
Walnut Creek Elementary School District Contra Costa County, School District, GO UT, 0.000%, 9/1/2022 AA/NR	1,160,000	681,813
Walnut Creek Elementary School District Contra Costa County, School District, GO UT, 0.000%, 9/1/2023 AA/NR	1,560,000	861,713
Yosemite Community College District, General Obligation, GO UT, 0.000%, 8/1/2031 AA-/Aa2	1,400,000	406,672
Yosemite Community College District, General Obligation, GO UT, 0.000%, 8/1/2036 AA-/Aa2	1,000,000	202,470
		26,702,742
Colorado — 3.3%
Arapahoe County Water & Wastewater Public Improvement District, General Obligation, GO UT, NATL-RE, 5.750%, 12/1/2016 A/Baa1; Call 12/1/2012	155,000	170,605
City & County of Denver, Airport, Revenue Bonds, XLCA, 5.000%, 11/15/2023 A+/A1; Call 11/15/2015	200,000	216,712
City of Colorado Springs, Utilities, Revenue Bonds, 4.625%, 11/15/2033 AA/Aa2; Call 11/15/2019	150,000	158,331
Colorado Educational & Cultural Facilities Authority, Education, Revenue Bonds, 6.000%, 4/1/2021 NR/Baa2; Call 4/1/2011	225,000	226,114
Colorado Educational & Cultural Facilities Authority, Education, Revenue Bonds, 6.250%, 3/1/2040 A/NR; Call 3/1/2020	2,000,000	2,222,280
Colorado Educational & Cultural Facilities Authority, Education, Revenue Bonds, 7.400%, 12/1/2038 A/NR; Call 12/1/2018	500,000	594,730
Colorado Educational & Cultural Facilities Authority, Education, Revenue Bonds, XLCA, 5.250%, 6/1/2024 A/Baa3; Call 6/1/2014	750,000	769,132
Colorado Health Facilities Authority, Medical, Revenue Bonds, 5.125%, 11/15/2020 AA-/Aa3; Call 11/15/2016 (4)	555,000	602,591
Colorado Health Facilities Authority, Medical, Revenue Bonds, 5.125%, 11/15/2022 AA-/Aa3; Call 11/15/2016 (4)	225,000	241,060
Colorado Health Facilities Authority, Medical, Revenue Bonds, RADIAN, 5.000%, 5/15/2014 BBB/NR	570,000	596,779

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

63

August 31, 2010

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Colorado (continued)
Colorado Higher Education, General, Certificate of Participation, 5.500%, 11/1/2027 AA-/Aa2; Call 11/1/2018	$     55,000	$         70,669
Colorado Higher Education, General, Certificate of Participation, 5.500%, 11/1/2027 AA-/Aa2; Call 11/1/2018	145,000	162,583
County of Boulder, Medical, Revenue Bonds, RADIAN, 5.300%, 12/1/2010 BBB-/Baa2	125,000	125,531
County of Pueblo, Pollution, Revenue Bonds, AMBAC, 5.100%, 1/1/2019 A/Baa1; Call 10/1/2010	750,000	753,420
Denver Health & Hospital Authority, Medical, Revenue Bonds, 5.500%, 12/1/2019 BBB/NR	1,195,000	1,299,551
Denver Health & Hospital Authority, Medical, Revenue Bonds, 5.500%, 12/1/2030 BBB/NR; Call 12/1/2020	240,000	242,393
Denver Urban Renewal Authority, General, Tax Allocation, 5.000%, 12/1/2025 NR/Aa3; Call 12/1/2015	1,350,000	1,446,849
Dove Valley Metropolitan District, Development, GO UT, AGM, 5.000%, 11/1/2025 AAA/Aa3; Call 11/1/2015	2,000,000	2,156,120
Fronterra Village Metropolitan District, Development, GO, CIFG, 4.250%, 12/1/2017 NR/WR; Call 12/1/2016	125,000	117,714
Mckay Landing Metropolitan District No. 2, Development, GO UT, AMBAC, 5.000%, 12/1/2026 NR/NR; Call 12/1/2016	390,000	379,817
Public Authority for Colorado Energy, General, Revenue Bonds, 5.750%, 11/15/2018 A/A2	590,000	635,867
Sand Creek Metropolitan District, Development, GO, XLCA, 5.000%, 12/1/2014 NR/WR; Call 12/1/2013	150,000	155,762
Sand Creek Metropolitan District, Development, GO, XLCA, 5.000%, 12/1/2016 NR/WR; Call 12/1/2013	250,000	255,762
Sand Creek Metropolitan District, Development, GO, XLCA, 5.000%, 12/1/2017 NR/WR; Call 12/1/2013	50,000	50,849
Southlands Metropolitan District No. 1, Development, GO, RADIAN, 4.750%, 12/1/2027 NR/WR; Call 12/1/2017	100,000	85,521
Tower Metropolitan District, Development, GO UT, RADIAN, 4.000%, 12/1/2020 NR/WR; Call 12/1/2015	100,000	90,334
		13,827,076
Connecticut — 0.2%
Connecticut Housing Finance Authority, Housing, Revenue Bonds, 5.550%, 11/15/2027 AAA/Aaa; Call 5/15/2018 (9)	195,000	204,563
State of Connecticut, General, Revenue Bonds, 4.250%, 2/1/2015 AA/Aa3	750,000	850,755
		1,055,318
Delaware — 0.1%
Delaware State Housing Authority, Single Family Housing, Revenue Bonds, 5.000%, 1/1/2026 NR/Aa1; Call 7/1/2019 (9)	365,000	383,582
District of Columbia — 0.1%
District of Columbia, General Obligation, GO UT, AGM, 5.000%, 6/1/2022 AAA/Aa2; Call 12/1/2017	250,000	282,503
Florida — 8.8%
Alachua County Health Facilities Authority, Medical, Revenue Bonds, 6.500%, 12/1/2019 A/A2; Call 12/1/2018	75,000	86,234
Citizens Property Insurance Corp., General, Revenue Bonds, 5.000%, 6/1/2016 A+/A2	700,000	753,795
Citizens Property Insurance Corp., General, Revenue Bonds, AGM, 5.000%, 6/1/2017 AAA/Aa3	1,000,000	1,084,360
Citizens Property Insurance Corp., General, Revenue Bonds, Assured Guaranty Corp., 5.000%, 6/1/2016 AAA/Aa3	400,000	432,472
Citizens Property Insurance Corp., General, Revenue Bonds, GO, 5.000%, 6/1/2011 A+/A2	600,000	613,488
Citizens Property Insurance Corp., Power, Revenue Bonds, 2.050%, 6/1/2013 A+/A2 (4)	3,000,000	2,972,910
City of Cape Coral, Water, Revenue Bonds, AMBAC, 3.700%, 10/1/2013 BBB+/A1	200,000	209,730
City of Gainesville, General, Revenue Bonds, AMBAC, 5.500%, 8/1/2017 NR/A2	1,000,000	1,135,590
City of Gulf Breeze, General, Revenue Bonds, 5.000%, 12/1/2023 A+/Aa3; Call 12/1/2020	2,000,000	2,219,900
City of Gulf Breeze, General, Revenue Bonds, FGIC, 6.050%, 12/1/2013 NR/NR/WR; Call 10/1/2010 (4)	1,475,000	1,481,136
City of Lake City, Utilities, Revenue Bonds, AGM, 4.125%, 7/1/2028 AAA/Aa3; Call 7/1/2020	500,000	505,825
City of Sunrise, Utilities, Revenue Bonds, AMBAC, 5.500%, 10/1/2015 NR/WR	125,000	138,609
City of Tampa, General, Revenue Bonds, AMBAC, 0.000%, 4/1/2017 NR/Aa3	240,000	188,573
County of Brevard, General Obligation, GO, AMBAC, 5.000%, 7/1/2015 NR/WR	500,000	542,040
County of Miami-Dade, Airport, Revenue Bonds, Assured Guaranty Corp., 5.000%, 10/1/2029 AAA/Aa3; Call 10/1/2019	400,000	424,864
County of Miami-Dade, Airport, Revenue Bonds, Assured Guaranty Corp., 5.500%, 10/1/2024 AAA/Aa3; Call 10/1/2018 (9)	1,500,000	1,618,500
County of Miami-Dade, General Obligation, GO UT, NATL-RE, 5.125%, 10/1/2021 A/Aa2; Call 10/1/2010	300,000	300,921
County of Miami-Dade, Transportation, Revenue Bonds, 5.500%, 10/1/2026 A-/A2; Call 10/1/2020	2,500,000	2,806,225
County of Miami-Dade, Utilities, Revenue Bonds, 5.000%, 10/1/2028 A+/Aa2; Call 10/1/2020	2,000,000	2,202,860
County of Miami-Dade, Water, Revenue Bonds, BHAC, 6.000%, 10/1/2023 AA+/Aa1; Call 10/1/2018	1,000,000	1,230,700
County of Polk, General, Revenue Bonds, NATL-RE, 5.000%, 12/1/2016 A+/Baa1	625,000	694,544
Emerald Coast Utilities Authority, Water, Revenue Bonds, NATL-RE FGIC, 5.250%, 1/1/2026 A/WR; Call 1/1/2016	1,000,000	1,061,360

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

64

Marshall Funds

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Florida (continued)
Florida Housing Finance Corp., Housing, Revenue Bonds, GNMA/FHLMC/FNMA, 5.000%, 7/1/2028 NR/Aaa; Call 1/1/2020	$1,000,000	$    1,074,050
Florida Housing Finance Corp., Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 5.250%, 7/1/2028 AA+/Aa1; Call 1/1/2018	860,000	905,253
Florida Housing Finance Corp., Single Family Housing, Revenue Bonds, 5.000%, 7/1/2034 AA+/Aa1; Call 7/1/2012 (9)	200,000	201,838
Florida Hurricane Catastrophe Fund Finance Corp., General, Revenue Bonds, 5.000%, 7/1/2013 AA-/Aa3	500,000	539,595
Florida Hurricane Catastrophe Fund Finance Corp., General, Revenue Bonds, 5.000%, 7/1/2014 AA-/Aa3	600,000	657,858
Florida Municipal Power Agency, Power, Revenue Bonds, 5.500%, 10/1/2019 NR/A1	250,000	300,882
Florida State Board of Education, Education, Revenue Bonds, MBIA, 5.000%, 7/1/2019 AAA/A1; Call 7/1/2012	2,000,000	2,134,620
Florida State Department of Transportation, Transportation, Revenue Bonds, FSA, 4.750%, 7/1/2022 AAA/Aa3; Call 7/1/2014	1,500,000	1,589,670
Fort Pierce, General, Revenue Bonds, Assured Guaranty Corp., 5.875%, 9/1/2028 AAA/Aa3; Call 9/1/2018	500,000	561,425
Greater Orlando Aviation Authority, Airport, Revenue Bonds, FSA, 5.000%, 10/1/2019 AAA/Aa3; Call 10/1/2017 (9)	200,000	218,528
Highlands County Health Facilities Authority, Medical, Revenue Bonds, 6.100%, 11/15/2013 AA-/Aa3 (4)	750,000	859,312
Hillsborough County Aviation Authority, Airport, Revenue Bonds, NATL-RE, 5.000%, 10/1/2015 A+/Aa3	200,000	226,762
Hillsborough County Industrial Development Authority, Pollution, Revenue Bonds, 5.650%, 5/15/2018 BBB/Baa1 (4)	500,000	571,945
Hillsborough County Industrial Development Authority, Pollution, Revenue Bonds, AMBAC, 5.000%, 3/15/2012 BBB/Baa1 (4)	875,000	918,225
Miami Health Facilities Authority, Medical, Revenue Bonds, 4.500%, 11/15/2014 A/A1; Call 11/15/2013	570,000	615,600
Orange County Health Facilities Authority, Medical, Revenue Bonds, 5.250%, 10/1/2035 A/A2; Call 10/1/2018	300,000	304,323
Polk County Housing Finance Authority, Multi-Family Housing, Revenue Bonds, GNMA, 5.000%, 9/1/2029 NR/Aaa; Call 8/1/2020	150,000	157,284
Port St. Lucie Community Redevelopment Agency, General, Tax Allocation, NATL-RE, 4.000%, 1/1/2015 A+/Baa1; Call 1/1/2014	200,000	213,078
Port St. Lucie, General, Certificate of Participation, Assured Guaranty Corp., 6.250%, 9/1/2027 AAA/Aa3; Call 9/1/2018	500,000	568,270
Putnam County Development Authority, Power, Revenue Bonds, AMBAC, 5.350%, 5/1/2018 A-/A3 (4)	445,000	489,211
St. Johns County School Board, General, Certificate of Participation, NATL-RE, 5.000%, 7/1/2018 A+/A1; Call 7/1/2016	150,000	164,077
Sunrise Excise Tax & Special Assessment, General, Revenue Bonds, NATL-RE, 0.000%, 10/1/2019 A/Baa1	480,000	324,202
Sunrise Excise Tax & Special Assessment, Utilities, Revenue Bonds, AMBAC, 5.500%, 10/1/2018 NR/WR	575,000	701,103
Village Community Development District No. 5, Development, Special Assessment, 6.500%, 5/1/2033 A+/NR; Call 5/1/2013	105,000	108,464
		37,110,211
Georgia — 3.2%
City of Atlanta, Water, Revenue Bonds, NATL-RE FGIC, 5.500%, 11/1/2022 A/A1	1,000,000	1,182,890
DeKalb County Hospital Authority, Medical, Revenue Bonds, 6.000%, 9/1/2030 NR/NR; Call 9/1/2020	500,000	517,470
East Point Building Authority, Water, Revenue Bonds, XLCA, 4.500%, 2/1/2025 NR/WR; Call 2/1/2016	500,000	430,035
East Point Building Authority, Water, Revenue Bonds, XLCA, 5.000%, 2/1/2017 NR/WR	575,000	582,521
Gainesville & Hall County Hospital Authority, Medical, Revenue Bonds, 4.000%, 2/15/2020 A-/NR	805,000	795,002
Gainesville & Hall County Hospital Authority, Medical, Revenue Bonds, CNTY GTD, 4.750%, 2/15/2030 A+/NR; Call 2/15/2020	2,000,000	2,019,680
Georgia Higher Education Facilities Authority, Education, Revenue Bonds, Assured Guaranty Corp., 5.000%, 6/15/2038 AAA/Aa3; Call 6/15/2020	200,000	208,474
Main Street Natural Gas, Inc., General, Revenue Bonds, 5.250%, 9/15/2018 A/A2	250,000	264,245
Medical Center Hospital Authority, Medical, Revenue Bonds, AGC, 6.500%, 8/1/2038 AAA/NR; Call 8/1/2018	250,000	273,900
Medical Center Hospital Authority, Medical, Revenue Bonds, AGM, 4.125%, 8/1/2024 AAA/Aa3; Call 8/1/2020 (5)	250,000	251,918
Medical Center Hospital Authority, Medical, Revenue Bonds, AGM, 4.250%, 8/1/2025 AAA/Aa3; Call 8/1/2020 (5)	1,270,000	1,285,354
Medical Center Hospital Authority, Medical, Revenue Bonds, AGM, 4.750%, 8/1/2032 AAA/Aa3; Call 8/1/2020 (5)	250,000	254,343
Municipal Electric Authority of Georgia, Power, Revenue Bonds, 4.375%, 11/1/2029 A/A1; Call 11/1/2020	600,000	616,590
Municipal Electric Authority of Georgia, Power, Revenue Bonds, 5.750%, 1/1/2019 A/A2; Call 7/1/2018	1,215,000	1,478,679
Richmond County Hospital Authority, General, Revenue Bonds, 5.250%, 1/1/2029 A+/A1; Call 1/1/2019	1,250,000	1,295,187
Richmond County Hospital Authority, General, Revenue Bonds, 5.375%, 1/1/2029 A+/A1; Call 1/1/2019	1,000,000	1,041,110

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

65

August 31, 2010

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Georgia (continued)
South Georgia Governmental Services Authority, Development, Revenue Bonds, MBIA, 5.000%, 1/1/2020 A/WR; Call 1/1/2014	$   300,000	$       323,394
Spalding County, Water, Revenue Bonds, 6.125%, 9/1/2028 NR/Aa3; Call 9/1/2018	500,000	585,515
		13,406,307
Hawaii — 0.4%
City & County of Honolulu, Water, Revenue Bonds, NATL-RE FGIC, 5.000%, 7/1/2024 AA-/Aa2; Call 7/1/2015	1,000,000	1,101,510
Hawaii State Department of Budget & Finance, Power, Revenue Bonds, NATL-RE, 4.950%, 4/1/2012 A/Baa1	450,000	471,227
		1,572,737
Idaho — 1.1%
Boise-Kuna Irrigation District, Power, Revenue Bonds, 5.875%, 6/1/2022 NR/A3; Call 6/1/2018	200,000	225,886
Boise-Kuna Irrigation District, Power, Revenue Bonds, 7.375%, 6/1/2034 NR/A3; Call 6/1/2018	340,000	392,469
Idaho Housing & Finance Association, Single Family Housing, Revenue Bonds, 5.150%, 7/1/2022 NR/Aa3; Call 1/1/2013 (9)	515,000	524,909
Idaho Housing & Finance Association, Single Family Housing, Revenue Bonds, 5.150%, 7/1/2023 NR/Aa3; Call 7/1/2012 (9)	190,000	192,398
Idaho Housing & Finance Association, Single Family Housing, Revenue Bonds, 5.500%, 1/1/2021 NR/Aa3; Call 7/1/2011 (9)	155,000	156,410
Idaho Housing & Finance Association, Single Family Housing, Revenue Bonds, 5.500%, 7/1/2021 NR/Aa3; Call 1/1/2012 (9)	90,000	90,911
Idaho Housing & Finance Association, Single Family Housing, Revenue Bonds, 5.550%, 7/1/2021 NR/Aa3; Call 1/1/2012 (9)	280,000	289,915
Idaho Housing & Finance Association, Single Family Housing, Revenue Bonds, 5.600%, 7/1/2021 NR/Aa3; Call 1/1/2012 (9)	265,000	269,176
University of Idaho, Higher Education, Revenue Bonds, 5.250%, 4/1/2021 A+/Aa3 (4)(5)	2,500,000	2,690,900
		4,832,974
Illinois — 12.3%
Bryant, Development, Revenue Bonds, 5.900%, 8/1/2023 BBB+/Baa1; Call 10/1/2010	680,000	682,305
Chicago Public Building Commission Building, Facilities, Revenue Bonds, AMBAC, 5.000%, 3/1/2017 A/A1	115,000	130,953
Chicago Transit Authority, Transportation, Revenue Bonds, Assured Guaranty Corp., 5.250%, 6/1/2022 AAA/Aa3; Call 6/1/2018	1,500,000	1,684,215
City of Chicago, Airport, Revenue Bonds, NATL-RE, 5.250%, 1/1/2024 A/A1; Call 1/1/2016	2,025,000	2,179,467
City of Chicago, General Obligation, GO UT, NATL-RE, 0.000%, 1/1/2020 AA-/Aa3; Call 1/1/2016	1,000,000	1,109,580
City of Quincy, Medical, Revenue Bonds, 5.000%, 11/15/2012 A-/A3	185,000	193,416
City of Springfield, Power, Revenue Bonds, NATL-RE, 5.000%, 3/1/2022 AA-/Aa3; Call 3/1/2017	3,500,000	3,866,800
Cook County Community High School District No. 219-Niles Township, School District, GO UT, FSA, 5.000%, 12/1/2025 AAA/Aa2; Call 12/1/2017	2,605,000	2,888,163
Cook County Community High School District No. 219-Niles Township, School District, GO UT, NATL-RE, 0.000%, 12/1/2020 NR/Baa1	35,000	23,257
Cook County School District No. 123-Oak Lawn, School District, GO UT, NATL-RE, 0.000%, 12/1/2019 A/A1	1,440,000	995,803
Cook County School District No. 130 Blue Island, School District, GO, XLCA, 4.250%, 6/1/2013 NR/WR	500,000	529,470
Cook County School District No. 144 Prairie Hills, School District, GO UT, 5.500%, 12/1/2013 NR/A1; Call 9/1/2010	2,435,000	2,435,000
Cook County School District No. 144 Prairie Hills, School District, GO UT, 5.625%, 12/1/2014 NR/A1; Call 9/1/2010	1,200,000	1,200,000
Cook County School District No. 144 Prairie Hills, School District, GO, AGM, 4.750%, 12/1/2029 NR/Aa3; Call 12/1/2020	3,390,000	3,419,900
Cook County School District No. 159 Matteson-Richton Park, School District, GO UT, FSA, 0.000%, 12/1/2016 NR/Aa3	300,000	244,995
County of St. Clair, General Obligation, GO UT, 5.250%, 10/1/2027 AA/Aa2; Call 10/1/2019	900,000	1,012,617
Des Plaines Valley Public Library District, Facilities, GO UT, 5.500%, 1/1/2030 AA-/NR; Call 1/1/2020	2,000,000	2,249,760
Du Page County School District No. 12 Roselle, School District, GO UT, NATL-RE, 5.000%, 1/1/2016 NR/Baa1	440,000	492,206
Illinois Finance Authority, General, Revenue Bonds, 5.250%, 3/1/2019 A+/A1	250,000	291,700
Illinois Finance Authority, Medical, Revenue Bonds, 5.750%, 11/15/2033 A/A3; Call 11/15/2017	960,000	987,226
Illinois Finance Authority, Medical, Revenue Bonds, 7.125%, 11/15/2037 A/A3; Call 5/15/2019	530,000	596,663
Illinois Finance Authority, Medical, Revenue Bonds, AMBAC, 5.500%, 2/1/2040 A+/A2; Call 2/1/2018	75,000	76,181
Illinois Finance Authority, Medical, Revenue Bonds, AMBAC, 6.250%, 2/1/2033 A+/A2; Call 2/1/2018	75,000	80,455
Illinois Finance Authority, Medical, Revenue Bonds, Assured Guaranty Corp., 5.250%, 8/15/2019 AAA/NR	250,000	282,747

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

66

Marshall Funds

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Illinois (continued)
Illinois Finance Authority, Utilities, Revenue Bonds, BHAC, 4.875%, 11/1/2018 AAA/Aaa; Call 11/1/2013 (4)(9)	$1,255,000	$    1,286,777
Illinois Municipal Electric Agency, Power, Revenue Bonds, MBIA, 5.250%, 2/1/2019 A+/A1; Call 2/1/2017	1,000,000	1,137,180
Illinois Municipal Electric Agency, Power, Revenue Bonds, NATL-RE FGIC, 5.250%, 2/1/2024 A+/A1; Call 2/1/2017	1,000,000	1,100,290
Kendall, Kane & Will Counties High School District No. 18, School District, GO UT, FSA, 5.250%, 10/1/2016 NR/Aa2; Call 10/1/2014	925,000	1,059,328
Lake County Community Consolidated School District No. 46-Grayslake, School District, GO UT, NATL-RE FGIC, 0.000%, 12/1/2018 AA+/WR	275,000	207,928
Lake County Community High School District No. 117 Antioch, School District, GO UT, NATL-RE FGIC, 0.000%, 12/1/2019 NR/WR	100,000	69,028
Lake County Community Unit School District No. 116 Round Lake, School District, GO UT, XLCA, 4.500%, 1/15/2018 NR/A1; Call 1/15/2015	500,000	521,920
Lake County School District No. 33, School District, GO UT, XLCA, 0.000%, 12/1/2026 NR/WR	525,000	238,376
Lake County School District No. 33, School District, GO UT, XLCA, 0.000%, 12/1/2028 NR/WR	335,000	131,541
Lake County School District No. 38-Big Hallow, School District, GO UT, AMBAC, 0.000%, 2/1/2013 NR/WR	200,000	187,520
Lake County School District No. 38-Big Hallow, School District, GO UT, AMBAC, 0.000%, 2/1/2021 NR/WR	300,000	183,084
Lake County School District No. 38-Big Hallow, School District, GO UT, AMBAC, 0.000%, 2/1/2023 NR/WR	100,000	53,915
McHenry & Kane Counties Community Consolidated School District 158, School District, GO UT, NATL-RE, 0.000%, 1/1/2015 NR/Baa1	100,000	87,200
McHenry & Kane Counties Community Consolidated School District 158, School District, GO UT, NATL-RE, 0.000%, 1/1/2017 NR/Baa1	210,000	166,108
Northern Illinois Municipal Power Agency, Power, Revenue Bonds, NATL-RE, 5.000%, 1/1/2020 NR/A2; Call 1/1/2018	1,500,000	1,670,910
Regional Transit Authority, General, Revenue Bonds, 1.400%, 6/1/2025 A-1+/Aa3/P-1; Call 9/1/2010 (4)	2,000,000	2,000,000
Rock Island County Metropolitan Airport Authority, General Obligation, GO UT, Assured Guaranty Corp., 5.000%, 12/1/2019 AAA/Aa3 (9)	1,040,000	1,094,174
Rock Island County Metropolitan Airport Authority, General Obligation, GO UT, Assured Guaranty Corp., 5.000%, 12/1/2020 AAA/Aa3 (9)	1,095,000	1,139,468
Rock Island County Metropolitan Airport Authority, General Obligation, GO UT, Assured Guaranty Corp., 5.000%, 12/1/2021 AAA/Aa3 (9)	815,000	838,977
Sangamon Logan & Menard Counties Community Unit School District No. 15, School District, GO UT, FSA, 0.000%, 1/1/2016 NR/Aa3	650,000	559,325
Southern Illinois University, Higher Education, Revenue Bonds, NATL-RE, 0.000%, 4/1/2022 A/A2	100,000	60,623
Stephenson County School District No. 145-Freeport, School District, GO, AMBAC, 0.000%, 1/1/2018 NR/A1	515,000	379,236
Stephenson-Jo Daviess Counties Community Unit School District No. 200, School District, GO UT, NATL-RE, 0.000%, 2/1/2016 NR/Baa1	535,000	417,188
University of Illinois, Higher Education, Revenue Bonds, AMBAC, 5.250%, 4/1/2013 AA-/Aa2	1,060,000	1,167,219
Village of Bolingbrook, General Obligation, GO UT, AGM, 5.000%, 1/1/2025 NR/Aa3; Call 1/1/2020	1,425,000	1,550,001
Village of Elwood, General Obligation, GO UT, RADIAN, 0.000%, 3/1/2026 A/WR; Call 3/1/2016	1,000,000	409,250
Village of Franklin Park, General Obligation, GO UT, AMBAC, 5.000%, 7/1/2016 NR/WR; Call 1/1/2014	1,065,000	1,090,805
Village of Hoffman Estates, General Obligation, GO UT, 5.250%, 12/1/2025 AA+/Aa1; Call 12/1/2018	175,000	201,766
Village of Justice, General Obligation, GO UT, AMBAC, 0.000%, 1/1/2014 NR/WR	545,000	489,557
Village of Justice, General Obligation, GO UT, AMBAC, 0.000%, 1/1/2015 NR/WR	345,000	294,133
Village of Maywood, General Obligation, GO UT, XLCA, 5.000%, 1/1/2021 NR/A1; Call 1/1/2015	385,000	402,163
Village of Melrose Park, General Obligation, GO UT, NATL-RE FGIC, 0.000%, 12/15/2015 NR/WR	155,000	123,991
Village of Melrose Park, General Obligation, GO UT, NATL-RE FGIC, 0.000%, 12/15/2019 NR/WR	40,000	26,391
Village of South Chicago Heights, General Obligation, GO UT, NATL-RE FGIC, 0.000%, 11/1/2016 A/WR	505,000	417,049
Will County Community School District No. 161 Summit Hill, School District, GO UT, NATL-RE FGIC, 0.000%, 1/1/2017 NR/WR	750,000	576,907
Will County Community Unit School District No. 201 Crete-Monee, School District, GO UT, NATL-RE FGIC, 0.000%, 11/1/2021 A+/WR	200,000	127,564
Will County Community Unit School District No. 201 Crete-Monee, School District, GO UT, NATL-RE FGIC, 0.000%, 11/1/2022 A+/WR	250,000	150,088
Will County School District No. 114, School District, GO UT, NATL-RE FGIC, 0.000%, 12/1/2015 NR/WR	50,000	42,027
Will County School District No. 114, School District, GO UT, NATL-RE FGIC, 0.000%, 12/1/2017 NR/WR	870,000	657,650
Will County School District No. 114, School District, GO UT, NATL-RE FGIC, 0.000%, 12/1/2020 NR/WR	750,000	486,990
Will County Unit School District No. 200-U Beecher, School District, GO UT, AMBAC, 5.000%, 11/1/2018 NR/A1; Call 11/1/2015	740,000	805,446
Will, Grundy, Livingston, Cook, Kendall, LaSalle & Kankakee Counties Community College District No. 525, General Obligation, GO UT, 5.750%, 6/1/2023 AA/NR; Call 6/1/2018	315,000	373,256
Will, Grundy, Livingston, Cook, Kendall, LaSalle & Kankakee Counties Community College District No. 525, General Obligation, GO UT, 5.750%, 6/1/2028 AA/NR; Call 6/1/2018	275,000	314,834
		51,950,062

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

67

August 31, 2010

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Indiana — 4.7%
Anderson School Building Corp., School District, Revenue Bonds, AMBAC, 5.000%, 7/15/2026 AA+/NR; Call 1/15/2016	$   680,000	$       725,370
Brownsburg Redevelopment Authority, General, Tax Allocation, 2.000%, 8/1/2012 AA-/NR	95,000	96,594
Carmel Redevelopment Authority, General, Revenue Bonds, 5.000%, 7/1/2023 AA-/Aa2; Call 7/1/2020	350,000	400,844
Carmel Redevelopment Authority, General, Revenue Bonds, NATL-RE, 5.000%, 7/1/2021 AA-/Aa2; Call 7/1/2016	200,000	219,886
County of St. Joseph, Nursing Homes, Revenue Bonds, 2.000%, 9/1/2017 A-/A-2/NR; Call 9/1/2010 (4)	2,970,000	2,970,000
Dyer Redevelopment Authority Economic Development Lease Rent, General Obligation, Revenue Bonds, CIFG, 5.250%, 7/15/2021 A+/WR; Call 7/15/2015	400,000	434,040
Dyer Redevelopment Authority, General Obligation, Revenue Bonds, CIFG, 5.250%, 7/15/2023 A+/WR; Call 7/15/2015	1,225,000	1,316,140
Fishers Redevelopment District, General, Revenue Bonds, 5.125%, 7/15/2026 AA/NR; Call 1/15/2020	1,875,000	2,005,069
Fishers Redevelopment District, General, Revenue Bonds, 5.250%, 7/15/2023 AA/NR; Call 1/15/2020	1,605,000	1,778,886
Hendricks County Redevelopment District, Development, Tax Allocation, 6.000%, 1/1/2022 NR/Baa2; Call 1/1/2016	780,000	825,739
Indiana Development Finance Authority, Pollution, Revenue Bonds, 4.700%, 10/1/2015 BBB/NR; Call 10/1/2015 (4)(9)	550,000	567,006
Indiana Finance Authority, Education, Revenue Bonds, 6.000%, 10/1/2021 BBB-/NR; Call 10/1/2019	500,000	533,100
Indiana Finance Authority, Pollution, Revenue Bonds, AMBAC, 4.550%, 12/1/2024 BBB/A3; Call 12/1/2016	1,650,000	1,678,611
Indiana Finance Authority, Transportation, Revenue Bonds, AMBAC, 0.000%, 6/1/2018 AA+/Aa1	175,000	139,916
Indiana Municipal Power Agency, Power, Revenue Bonds, 5.250%, 1/1/2024 A+/A1; Call 1/1/2019	500,000	570,075
Indianapolis Airport Authority, Airport, Revenue Bonds, 4.000%, 1/1/2020 A/A1	255,000	268,594
Indianapolis Airport Authority, Airport, Revenue Bonds, 4.000%, 1/1/2021 A/A1; Call 1/1/2020	150,000	156,283
Lake County Public Library District, General Obligation, GO UT, AMBAC, 4.500%, 8/1/2017 A/WR; Call 2/1/2014	1,000,000	1,077,220
Merrillville Multi-School Building Corp., School District, Revenue Bonds, NATL-RE, 0.000%, 1/15/2015 A/Baa1	750,000	633,600
Merrillville Multi-School Building Corp., School District, Revenue Bonds, NATL-RE FGIC, 5.000%, 7/15/2024 A/WR; Call 7/15/2015	425,000	456,038
North Central Campus School Building Corp., School District, Revenue Bonds, AGM, 5.250%, 7/15/2022 AAA/Aa3; Call 7/15/2018	1,000,000	1,142,280
North Gibson Multi-School Building Corp., School District, Revenue Bonds, 5.000%, 7/15/2026 AA+/NR; Call 1/15/2020	1,000,000	1,129,100
Rush County Elementary School Building Corp., School District, Revenue Bonds, State Aid Withholding, 5.250%, 7/15/2021 AA+/NR; Call 1/15/2019	565,000	653,897
		19,778,288
Iowa — 0.8%
Cedar Rapids Community School District, Education, Revenue Bonds, 5.000%, 7/1/2030 A/NR; Call 7/1/2019	1,650,000	1,745,188
Iowa Finance Authority, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 5.000%, 1/1/2038 AAA/Aaa; Call 1/1/2019	1,465,000	1,574,978
		3,320,166
Kansas — 1.1%
City of Salina, Medical, Revenue Bonds, 5.000%, 10/1/2018 NR/A1; Call 4/1/2016	350,000	379,152
Kansas Development Finance Authority, Medical, Revenue Bonds, 5.750%, 11/15/2034 AA-/Aa3; Call 11/15/2014	600,000	671,292
Miami County Unified School District No. 416, School District, GO UT, NATL-RE, 5.000%, 9/1/2019 A/Baa1; Call 9/1/2016	1,240,000	1,367,261
Sedgwick & Shawnee Counties, Single Family Housing, Revenue Bonds, FNMA/GNMA/FHLMC, 5.250%, 12/1/2038 NR/Aaa; Call 12/1/2016 (9)	490,000	515,245
Sedgwick & Shawnee Counties, Single Family Housing, Revenue Bonds, GNMA/FNMA, 5.450%, 6/1/2027 NR/Aaa; Call 6/1/2013 (9)	735,000	768,913
Sedgwick & Shawnee Counties, Single Family Housing, Revenue Bonds, GNMA/FNMA, 5.750%, 12/1/2037 NR/Aaa; Call 12/1/2015 (9)	190,000	193,779
Sedgwick & Shawnee Counties, Single Family Housing, Revenue Bonds, GNMA/FNMA COLL, 5.650%, 12/1/2036 NR/Aaa; Call 12/1/2014 (9)	550,000	574,370
		4,470,012
Kentucky — 0.4%
Kentucky Housing Corp., Housing, Revenue Bonds, 5.125%, 7/1/2025 AAA/Aaa; Call 1/1/2020 (9)	500,000	510,940
Kentucky Housing Corp., Single Family Housing, Revenue Bonds, FHA, 5.750%, 7/1/2039 AAA/Aaa; Call 1/1/2019	975,000	1,047,725

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

68

Marshall Funds

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Kentucky (continued)
Kentucky State Property & Buildings Commission, Facilities, Revenue Bonds, MBIA, 5.000%, 8/1/2018 A+/Aa2	$   205,000	$       243,680
		1,802,345
Louisiana — 0.6%
City of New Orleans, General Obligation, GO UT, AMBAC, 0.000%, 9/1/2015 NR/A3	25,000	20,523
Louisiana Housing Finance Agency, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 6.550%, 6/1/2040 NR/Aaa; Call 6/1/2018	1,470,000	1,562,081
Louisiana Public Facilities Authority, Development, Revenue Bonds, 7.000%, 12/1/2011 BBB/Baa2; Call 12/1/2011 (4)	500,000	532,990
State of Louisiana, General Obligation, GO UT, CIFG, 5.000%, 7/15/2017 AA-/Aa2; Call 7/15/2016	250,000	290,565
		2,406,159
Maryland — 0.3%
Maryland Community Development Administration, Single Family Housing, Revenue Bonds, 6.000%, 3/1/2041 NR/Aa2; Call 3/1/2016 (9)	150,000	159,674
Maryland Health & Higher Educational Facilities Authority, Medical, Revenue Bonds, 4.500%, 5/15/2032 A+/Aa3; Call 5/15/2020	500,000	513,025
Maryland Health & Higher Educational Facilities Authority, Medical, Revenue Bonds, 4.500%, 5/15/2033 A+/Aa3; Call 5/15/2020	700,000	715,428
		1,388,127
Massachusetts — 2.1%
Massachusetts Educational Financing Authority, Education, Revenue Bonds, 4.750%, 1/1/2016 AA/NR	500,000	532,620
Massachusetts Educational Financing Authority, Education, Revenue Bonds, 5.000%, 1/1/2017 AA/NR	650,000	699,147
Massachusetts Educational Financing Authority, Education, Revenue Bonds, 5.250%, 1/1/2019 AA/NR	1,000,000	1,081,120
Massachusetts Educational Financing Authority, Student Loan, Revenue Bonds, 4.000%, 1/1/2016 AA/NR	700,000	737,030
Massachusetts Educational Financing Authority, Student Loan, Revenue Bonds, 5.100%, 1/1/2018 AA/NR (9)	310,000	326,027
Massachusetts Health & Educational Facilities Authority, Higher Education, Revenue Bonds, 5.000%, 10/1/2020 A+/A2; Call 10/1/2017	500,000	565,030
Massachusetts Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.000%, 7/1/2024 AA/Aa2; Call 7/1/2019	3,105,000	3,408,917
Massachusetts Municipal Wholesale Electric Co., Power, Revenue Bonds, MBIA, 0.333%, 7/1/2018 A/A3; Call 9/7/2010 (4)	1,875,000	1,640,625
Massachusetts Municipal Wholesale Electric Co., Power, Revenue Bonds, NATL-RE, 0.380%, 7/1/2017 A/A3; Call 9/1/2010 (4)	35,000	30,625
		9,021,141
Michigan — 3.8%
Allen Park Brownfield Redevelopment Authority, General Obligation, GO, AMBAC, 4.250%, 5/1/2016 BBB/WR	300,000	304,665
Bay City School District, School District, GO UT, AGM Q-SBLF, 5.000%, 5/1/2025 AAA/Aa2; Call 5/1/2016	1,000,000	1,079,580
Berrien Springs Public Schools, School District, GO UT, NATL-RE, 4.250%, 5/1/2016 NR/Baa1; Call 5/1/2015	560,000	590,716
City of Detroit, General Obligation, GO UT, AGM, 5.000%, 4/1/2017 AAA/Aa3; Call 10/1/2010	50,000	50,295
City of Detroit, Water, Revenue Bonds, NATL-RE, 5.000%, 7/1/2016 A/Aa3 (4)	725,000	811,427
City of Detroit, Water, Revenue Bonds, NATL-RE, 5.250%, 7/1/2022 A/Aa3; Call 7/1/2017 (4)	1,100,000	1,194,380
City of Warren, General Obligation, GO, NATL-RE, 4.200%, 10/1/2018 AA/Baa1; Call 10/1/2015	250,000	266,455
Cook & Thorburn Drain District, General Obligation, GO, 3.700%, 5/1/2021 AA+/NR; Call 5/1/2019	245,000	259,524
Detroit City School District, School District, GO UT, AMBAC Q-SBLF, 6.500%, 5/1/2011 NR/Aa3	200,000	206,212
East Grand Rapids Public School District, School District, GO UT, AGM Q-SBLF, 5.000%, 5/1/2019 AAA/Aa2; Call 5/1/2014 (5)	2,155,000	2,375,672
Ferndale Public Schools, School District, GO UT, NATL-RE FGIC Q-SBLF, 5.000%, 5/1/2019 AA-/Aa2; Call 5/1/2014	485,000	513,707
Michigan Public Educational Facilities Authority, Education, Revenue Bonds, 5.250%, 6/1/2015 BBB-/NR	250,000	256,838
Michigan Public Educational Facilities Authority, Education, Revenue Bonds, 6.000%, 6/1/2020 BBB-/NR	380,000	393,277
Michigan Public Power Agency, Power, Revenue Bonds, NATL-RE, 5.250%, 1/1/2014 AA/A1	150,000	169,023
Michigan Public Power Agency, Power, Revenue Bonds, NATL-RE, 5.250%, 1/1/2017 AA/A1	375,000	435,232
Michigan Strategic Fund, Pollution, Revenue Bonds, 2.800%, 12/1/2013 BBB/A-2/NR (4)	1,000,000	1,005,850
Pontiac, School District, GO, CIFG, 5.000%, 5/1/2017 A+/NR; Call 5/1/2016	300,000	321,960
Southgate Community School District, School District, GO UT, NATL-RE FGIC Q-SBLF, 5.000%, 5/1/2019 AA-/Aa2; Call 5/1/2015	1,000,000	1,072,400
State of Michigan, Transportation, Revenue Bonds, FSA, 5.250%, 9/15/2021 AAA/Aa3; Call 9/15/2017	2,000,000	2,277,980
Warren Consolidated School District, School District, GO UT, FSA, 5.000%, 5/1/2015 AAA/Aa2	325,000	376,652

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

69

August 31, 2010

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Michigan (continued)
Wayland Union School District, School District, GO UT, AGM Q-SBLF, 5.250%, 5/1/2019 AAA/Aa2; Call 5/1/2018	$   400,000	$       463,252
Wayne State University, Higher Education, Revenue Bonds, AGM, 5.000%, 11/15/2025 AAA/Aa2; Call 11/15/2018	515,000	562,715
Wyandotte, Utilities, Revenue Bonds, NATL-RE, 4.500%, 10/1/2014 A/Baa1 (9)	600,000	641,184
Wyandotte, Utilities, Revenue Bonds, NATL-RE, 5.000%, 10/1/2013 A/Baa1 (9)	600,000	644,160
		16,273,156
Minnesota — 0.8%
City of Minneapolis, Medical, Revenue Bonds, Assured Guaranty Corp., 6.500%, 11/15/2038 AAA/Aa3; Call 11/15/2018	1,000,000	1,153,580
City of Rochester, Medical, Revenue Bonds, 5.000%, 11/15/2038 AA-/Aa2; Call 5/15/2020	1,250,000	1,342,325
Minneapolis & St. Paul Housing & Redevelopment Authority, Medical, Revenue Bonds, 5.250%, 8/15/2025 A+/NR; Call 8/15/2020	275,000	300,855
Minnesota Higher Education Facilities Authority, Higher Education, Revenue Bonds, 4.750%, 10/1/2035 NR/A3; Call 10/1/2019	500,000	512,210
		3,308,970
Mississippi — 0.4%
Mississippi Home Corp., Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 6.750%, 6/1/2039 NR/Aaa; Call 6/1/2018	675,000	730,796
Rankin County School District, School District, GO UT, FSA, 5.000%, 10/1/2014 AAA/Aa3	730,000	840,383
		1,571,179
Missouri — 3.6%
Cass County, Medical, Revenue Bonds, 5.000%, 5/1/2015 NR/NR	450,000	473,436
City of Branson, General, Revenue Bonds, 4.250%, 1/1/2021 A/NR; Call 1/1/2016	1,180,000	1,205,913
City of Des Peres, General Obligation, GO UT, AMBAC, 5.250%, 2/1/2018 NR/WR; Call 2/1/2015	380,000	429,829
City of North Kansas City, Medical, Revenue Bonds, AMBAC, 4.750%, 11/15/2016 NR/WR; Call 10/1/2010	125,000	125,258
City of Sikeston, Utilities, Revenue Bonds, NATL-RE, 6.000%, 6/1/2015 A/Baa1	900,000	980,676
City of St. Louis, Airport, Revenue Bonds, NATL-RE, 4.000%, 7/1/2014 A/Baa1	75,000	76,681
Jackson County, General, Revenue Bonds, AMBAC, 5.000%, 12/1/2018 A+/Aa3; Call 12/1/2016	1,000,000	1,131,310
Kansas City Industrial Development Authority, Development, Revenue Bonds, 4.000%, 9/1/2014 NR/NR	1,115,000	1,143,566
Missouri Development Finance Board, General, Revenue Bonds, 6.000%, 4/1/2027 A/NR; Call 4/1/2013	650,000	675,376
Missouri Development Finance Board, General, Revenue Bonds, 6.750%, 4/1/2029 A/NR; Call 10/1/2013	200,000	214,752
Missouri Highway & Transportation Commission, Transportation, Revenue Bonds, 5.250%, 5/1/2021 AAA/Aa1; Call 5/1/2017	500,000	590,600
Missouri Housing Development Commission, Single Family Housing, Revenue Bonds, 5.000%, 11/1/2027 AAA/NR; Call 11/1/2019	1,100,000	1,188,693
Missouri Housing Development Commission, Single Family Housing, Revenue Bonds, GNMA/FNMA, 6.660%, 3/1/2034 AAA/NR; Call 3/1/2012 (9)	3,385,000	3,513,901
Missouri Housing Development Commission, Single Family Housing, Revenue Bonds, GNMA/FNMA/COLL, 5.200%, 9/1/2031 AAA/NR; Call 3/1/2019	250,000	266,417
Missouri Housing Development Commission, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 5.700%, 9/1/2038 AAA/NR; Call 9/1/2017 (9)	175,000	188,281
Missouri State Environmental Improvement & Energy Resources Authority, Water, Revenue Bonds, 5.750%, 1/1/2029 NR/Aaa; Call 1/1/2019	750,000	908,340
Missouri State Health & Educational Facilities Authority, Medical, Revenue Bonds, AGM, 5.000%, 11/15/2015 AAA/Aa3	700,000	789,180
Springfield Public Building Corp., Airport, Revenue Bonds, AMBAC, 5.000%, 7/1/2014 NR/Aa2 (9)	225,000	247,216
St. Louis Municipal Finance Corp., Facilities, Revenue Bonds, Assured Guaranty Corp., 0.000%, 7/15/2021 AAA/Aa3	800,000	489,080
Taney County Public Water Supply District No. 3, Water, Certificate of Participation, 5.000%, 7/1/2032 A+/NR; Call 7/1/2015	500,000	510,400
		15,148,905
Montana — 1.6%
City of Billings, Airport, Revenue Bonds, 4.125%, 7/1/2017 NR/Baa2 (9)	500,000	503,380
City of Billings, Airport, Revenue Bonds, 4.500%, 7/1/2016 NR/Baa2 (9)	400,000	415,344
City of Billings, Airport, Revenue Bonds, 4.500%, 7/1/2018 NR/Baa2 (9)	400,000	406,312
City of Billings, Airport, Revenue Bonds, 4.750%, 7/1/2019 NR/Baa2 (9)	350,000	356,041
City of Billings, Airport, Revenue Bonds, 5.000%, 7/1/2020 NR/Baa2 (9)	235,000	239,371
County of Yellowstone, Medical, Revenue Bonds, 5.250%, 9/1/2034 AA/NR; Call 9/1/2017	1,400,000	1,547,182
Montana Facility Finance Authority, Medical, Revenue Bonds, 4.250%, 1/1/2022 AA/Aa3; Call 1/1/2020	500,000	523,515

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

70

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Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Montana (continued)
Montana Facility Finance Authority, Medical, Revenue Bonds, 4.500%, 7/1/2030 NR/Aa3; Call 7/1/2020	$1,000,000	$    1,036,960
Montana Facility Finance Authority, Medical, Revenue Bonds, 5.000%, 1/1/2035 AA/Aa3; Call 1/1/2020	500,000	521,165
Montana Facility Finance Authority, Medical, Revenue Bonds, 5.000%, 7/1/2036 NR/Aa3; Call 7/1/2020	1,000,000	1,034,480
		6,583,750
Nebraska — 0.3%
City of O’Neill, Medical, Revenue Bonds, 6.250%, 9/1/2012 NR/NR	190,000	195,786
Lancaster County Hospital Authority No. 1, Medical, Revenue Bonds, 5.500%, 1/1/2030 NR/NR; Call 1/1/2020	1,000,000	1,045,180
		1,240,966
Nevada — 2.5%
Clark County School District, School District, GO, AMBAC, 5.000%, 6/15/2019 AA/Aa1; Call 6/15/2017	1,600,000	1,838,400
County of Clark, General Obligation, GO, AGM-CR AMBAC, 5.000%, 11/1/2030 AAA/Aaa; Call 11/1/2016 (5)	3,340,000	3,529,946
County of Washoe, Transportation, Revenue Bonds, 5.500%, 2/1/2028 AA-/A1; Call 2/1/2019	1,000,000	1,101,700
Las Vegas Valley Water District, General Obligation, GO, AGM, 5.000%, 6/1/2028 AAA/Aa1; Call 6/1/2016	2,565,000	2,738,727
Nevada Housing Division, Single Family Housing, Revenue Bonds, 5.400%, 4/1/2031 AAA/Aaa; Call 10/1/2010 (9)	340,000	365,609
Nevada Housing Division, Single Family Housing, Revenue Bonds, FHA-Insured Mortgage, 5.550%, 4/1/2031 AAA/Aaa; Call 10/1/2010 (9)	400,000	401,400
Reno-Sparks Indian Colony, General, Revenue Bonds, 4.250%, 6/1/2014 NR/NR	515,000	521,736
		10,497,518
New Hampshire — 0.1%
New Hampshire Health & Education Facilities Authority, Medical, Revenue Bonds, AMBAC, 5.875%, 10/1/2016 A/A3; Call 10/1/2010	600,000	602,040
New Jersey — 0.9%
Essex County Improvement Authority, General, Revenue Bonds, AMBAC, 5.250%, 12/15/2018 NR/Aa2	150,000	178,829
New Jersey Economic Development Authority, Education, Revenue Bonds, 3.000%, 11/1/2034 NR/A1/VMIG1; Call 9/1/2010 (4)	2,480,000	2,480,000
New Jersey State Housing & Mortgage Finance Agency, Single Family Housing, Revenue Bonds, 5.000%, 10/1/2033 AA/Aa2; Call 4/1/2013 (9)	130,000	130,053
New Jersey Transportation Trust Fund Authority, Transportation, Revenue Bonds, FSA, 5.500%, 12/15/2017 AAA/Aa3	1,000,000	1,197,850
		3,986,732
New Mexico — 0.9%
New Mexico Mortgage Finance Authority, Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 5.650%, 9/1/2039 AAA/NR; Call 3/1/2019	1,000,000	1,083,940
New Mexico Mortgage Finance Authority, Single Family Housing, Revenue Bonds, 5.950%, 3/1/2032 AAA/NR; Call 10/1/2010 (9)	235,000	240,753
New Mexico Mortgage Finance Authority, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 4.400%, 1/1/2027 AAA/NR; Call 1/1/2016 (9)	1,430,000	1,415,972
New Mexico Mortgage Finance Authority, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 4.700%, 7/1/2027 AAA/NR; Call 1/1/2016 (9)	465,000	482,800
New Mexico Mortgage Finance Authority, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 6.000%, 9/1/2039 AAA/NR; Call 3/1/2019	750,000	803,415
		4,026,880
New York — 0.6%
County of Monroe, General Obligation, GO UT, MBIA, 6.000%, 3/1/2015 A/A3	225,000	263,819
Metropolitan Transportation Authority, General, Revenue Bonds, NATL-RE, 5.000%, 11/15/2024 AA/Baa1; Call 11/15/2016	100,000	111,474
Metropolitan Transportation Authority, Transportation, Revenue Bonds, 5.000%, 11/15/2016 A/A2	1,250,000	1,442,375
New York City Transitional Finance Authority, General, Revenue Bonds, NATL-RE FGIC, 5.000%, 7/15/2024 AA-/Aa3; Call 1/15/2017	425,000	474,959
New York Liberty Development Corp., Development, Revenue Bonds, 5.000%, 10/1/2015 A/A1	250,000	277,610
		2,570,237
North Carolina — 2.8%
Board of Governors of the University of North Carolina, Higher Education, Revenue Bonds, AMBAC, 5.375%, 4/1/2017 NR/WR; Call 10/1/2012	75,000	78,007
City of Charlotte, Airport, Revenue Bonds, 4.750%, 7/1/2029 A+/A1; Call 7/1/2020	280,000	295,515

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

71

August 31, 2010

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
North Carolina (continued)
City of Charlotte, Airport, Revenue Bonds, 5.000%, 7/1/2020 A+/A1 (9)	$   500,000	$       544,515
City of Charlotte, Airport, Revenue Bonds, 5.000%, 7/1/2022 A+/A1; Call 7/1/2020 (9)	150,000	159,822
City of Charlotte, Airport, Revenue Bonds, 5.000%, 7/1/2022 A+/A1; Call 7/1/2020	1,500,000	1,712,475
City of Charlotte, Airport, Revenue Bonds, 5.375%, 7/1/2028 A+/A1; Call 7/1/2020 (9)	960,000	1,010,467
North Carolina Eastern Municipal Power Agency, Power, Revenue Bonds, 4.200%, 1/1/2019 A-/Baa1	1,560,000	1,698,185
North Carolina Eastern Municipal Power Agency, Power, Revenue Bonds, 6.000%, 1/1/2022 A-/Baa1	50,000	62,348
North Carolina Eastern Municipal Power Agency, Power, Revenue Bonds, AMBAC, 5.000%, 1/1/2016 A-/WR	500,000	570,545
North Carolina Eastern Municipal Power Agency, Power, Revenue Bonds, Assured Guaranty Corp., 6.000%, 1/1/2019 AAA/Aa3	500,000	579,360
North Carolina Housing Finance Agency, Single Family Housing, Revenue Bonds, 4.650%, 7/1/2021 AA/Aa2; Call 7/1/2016 (4)(9)	2,000,000	2,051,300
North Carolina Medical Care Commission, Medical, Revenue Bonds, 4.250%, 10/1/2025 AA/Aa3; Call 10/1/2019	200,000	204,534
Raleigh Durham Airport Authority, Airport, Revenue Bonds, 4.250%, 5/1/2030 NR/Aa3; Call 5/1/2020 (5)	1,600,000	1,617,632
Raleigh Durham Airport Authority, Airport, Revenue Bonds, 5.000%, 5/1/2036 NR/Aa3; Call 5/1/2020 (5)	1,000,000	1,073,620
		11,658,325
North Dakota — 1.3%
City of Fargo, Medical, Revenue Bonds, FSA, 5.750%, 6/1/2012 AAA/Aa3; Call 12/1/2010	2,940,000	2,975,427
North Dakota State Housing Finance Agency, Single Family Housing, Revenue Bonds, 5.250%, 1/1/2029 NR/Aa3; Call 7/1/2019	2,490,000	2,659,544
		5,634,971
Ohio — 0.9%
City of Cleveland, General, Revenue Bonds, Assured Guaranty Corp., 5.000%, 10/1/2017 AAA/Aa3	425,000	492,626
County of Hamilton, Medical, Revenue Bonds, NATL-RE, 5.250%, 5/15/2011 A/Baa1; Call 11/15/2010	1,670,000	1,684,078
Hilliard School District, School District, GO UT, 0.000%, 12/1/2019 AA/Aa2	235,000	173,961
Mahoning County Career & Technical Center Board, General, Certificate of Participation, 6.250%, 12/1/2036 AA-/NR; Call 12/1/2011	1,250,000	1,342,962
Richland County, General Obligation, GO, Assured Guaranty Corp., 6.000%, 12/1/2028 NR/Aa3; Call 12/1/2018	250,000	290,713
		3,984,340
Oklahoma — 0.6%
Cleveland County Justice Authority, General, Revenue Bonds, 5.750%, 3/1/2029 A/NR; Call 3/1/2015	650,000	697,222
Oklahoma Housing Finance Agency, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 6.500%, 9/1/2038 NR/Aaa; Call 9/1/2018	460,000	505,356
Oklahoma Housing Finance Agency, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC COLL, 5.250%, 9/1/2029 NR/Aaa; Call 3/1/2019	200,000	212,086
Oklahoma Water Resource Board, Water, Revenue Bonds, 5.250%, 4/1/2018 AAA/Aaa; Call 10/1/2013	900,000	1,021,221
		2,435,885
Oregon — 0.5%
Medford Hospital Facilities Authority, Medical, Revenue Bonds, AGM, 5.500%, 8/15/2028 AAA/NR; Call 8/15/2020	1,000,000	1,099,690
Metropolitan Wastewater Management Commission, Water, Revenue Bonds, NATL-RE FGIC, 5.000%, 11/1/2025 AA-/Aa2; Call 11/1/2016	400,000	435,520
Oregon State Housing & Community Services Department, Single Family Housing, Revenue Bonds, 5.900%, 7/1/2031 NR/Aa2; Call 9/23/2010 (9)	420,000	421,197
		1,956,407
Pennsylvania — 1.0%
Allegheny County Hospital Development Authority, Medical, Revenue Bonds, 5.000%, 6/15/2018 A+/Aa3; Call 6/15/2014	150,000	161,092
Cumberland County Municipal Authority, Nursing Homes, Revenue Bonds, 3.000%, 1/1/2011 NR/NR	500,000	501,480
Harrisburg Authority, Pollution, Revenue Bonds, AGM, 5.000%, 12/1/2013 AAA/Aa3 (4)	1,025,000	1,040,549
North Versailles Township Industrial Development Authority, General, Tax Allocation, XLCA, 4.200%, 12/1/2026 A+/WR; Call 12/1/2012	605,000	583,529
Pennsylvania Industrial Development Authority, Development, Revenue Bonds, AMBAC, 5.500%, 7/1/2014 A-/A1; Call 7/1/2012	1,925,000	2,091,166
		4,377,816

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

72

Marshall Funds

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Puerto Rico — 0.9%
Commonwealth of Puerto Rico, General Obligation, GO UT, FSA, 5.250%, 7/1/2030 AAA/Aa3; Call 1/1/2020	$   800,000	$       873,544
Government Development Bank for Puerto Rico, Development, Revenue Bonds, 5.250%, 8/1/2018 BBB/NR; Call 8/1/2011 (5)	150,000	149,848
Government Development Bank for Puerto Rico, General, Revenue Bonds, 5.000%, 12/1/2010 BBB/A3	350,000	353,367
Government Development Bank for Puerto Rico, General, Revenue Bonds, 5.500%, 2/1/2012 BBB/NR; Call 10/1/2010	300,000	301,215
Puerto Rico Electric Power Authority, Power, Revenue Bonds, 5.250%, 7/1/2028 BBB+/A3; Call 7/1/2020	400,000	433,512
Puerto Rico Highway & Transportation Authority, Transportation, Revenue Bonds, AGM, 4.950%, 7/1/2026 AAA/Aa3; Call 7/1/2020	1,300,000	1,403,870
Puerto Rico Highway & Transportation Authority, Transportation, Revenue Bonds, NATL-RE-IBC, 5.500%, 7/1/2013 A/A2	250,000	272,275
		3,787,631
Rhode Island — 0.4%
Rhode Island Housing & Mortgage Finance Corp., Single Family Housing, Revenue Bonds, 5.400%, 10/1/2047 AA+/Aa2; Call 4/1/2017 (5)(9)	1,000,000	1,005,450
Rhode Island Student Loan Authority, Student Loan, Revenue Bonds, 3.950%, 12/1/2017 A+/NR	250,000	256,167
Rhode Island Student Loan Authority, Student Loan, Revenue Bonds, 4.200%, 12/1/2018 A+/NR; Call 12/1/2017	600,000	617,730
		1,879,347
South Carolina — 2.6%
City of Columbia, Water, Revenue Bonds, 4.250%, 2/1/2034 AA/Aa1; Call 2/1/2020	1,000,000	1,016,270
City of Rock Hill, Utilities, Revenue Bonds, Assured Guaranty Corp., 4.250%, 1/1/2029 AAA/Aa3; Call 1/1/2020	400,000	410,212
City of Spartanburg, Water, Revenue Bonds, AGM, 5.000%, 6/1/2020 AAA/Aa3; Call 6/1/2017 (5)	1,690,000	1,954,079
County of Florence, Medical, Revenue Bonds, 5.000%, 11/1/2025 A+/NR; Call 11/1/2020	2,000,000	2,139,660
Laurens County Water & Sewer Commission, Water, Revenue Bonds, AMBAC, 3.800%, 3/1/2016 NR/WR; Call 3/1/2013	725,000	729,807
South Carolina Jobs-Economic Development Authority, Nursing Homes, Revenue Bonds, GNMA, 6.900%, 1/20/2037 AAA/NR; Call 1/20/2011	200,000	205,678
South Carolina State Housing Finance & Development Authority, Housing, Revenue Bonds, 5.000%, 1/1/2028 NR/Aaa; Call 7/1/2019	500,000	541,105
South Carolina State Housing Finance & Development Authority, Single Family Housing, Revenue Bonds, AGM, 5.500%, 7/1/2037 NR/Aa2; Call 7/1/2016 (9)	1,890,000	1,992,060
South Carolina State Housing Finance & Development Authority, Single Family Housing, Revenue Bonds, AMBAC, 5.000%, 7/1/2035 NR/Aa1; Call 1/1/2015 (9)	270,000	279,426
South Carolina State Public Service Authority, Power, Revenue Bonds, 5.500%, 1/1/2038 AA-/Aa2; Call 1/1/2019	1,000,000	1,118,820
South Carolina Transportation Infrastructure Bank, Transportation, Revenue Bonds, AMBAC, 5.250%, 10/1/2020 NR/Aa3	250,000	304,680
South Carolina Transportation Infrastructure Bank, Transportation, Revenue Bonds, XLCA, 5.000%, 10/1/2022 NR/Aa3; Call 10/1/2016	150,000	167,434
		10,859,231
South Dakota — 0.7%
South Dakota Health & Educational Facilities Authority, Higher Education, Revenue Bonds, AMBAC, 5.000%, 8/1/2022 NR/WR; Call 8/1/2017	980,000	1,102,147
South Dakota Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.000%, 11/1/2024 AA-/A1; Call 11/1/2019	1,000,000	1,055,590
South Dakota Housing Development Authority, Single Family Housing, Revenue Bonds, 4.900%, 5/1/2022 AAA/Aa1; Call 11/1/2016 (9)	735,000	757,844
		2,915,581
Tennessee — 0.8%
Blount County Public Building Authority, Facilities, Revenue Bonds, 0.760%, 6/1/2032 NR/Aa1; Call 9/1/2010 (4)	2,000,000	2,000,000
Metropolitan Nashville Airport Authority, Airport, Revenue Bonds, 5.000%, 7/1/2017 A/A2	435,000	501,381
Tennessee Housing Development Agency, Development, Revenue Bonds, 5.000%, 1/1/2027 NR/Aa2; Call 7/1/2019	1,000,000	1,073,040
		3,574,421

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

73

August 31, 2010

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Texas — 6.1%
Alamo Community College District, General Obligation, GO, AGM-CR FGIC, 5.000%, 8/15/2021 AAA/Aaa; Call 8/15/2017	$   200,000	$       230,886
Bexar County Health Facilities Development Corp., Medical, Revenue Bonds, 5.450%, 7/1/2019 BBB/NR	100,000	103,969
Brazos River Authority, Development, Revenue Bonds, FGIC, 4.250%, 12/1/2017 BBB+/A3; Call 6/1/2014 (4)	290,000	295,922
Brazos River Authority, Power, Revenue Bonds, FGIC, 4.250%, 3/1/2014 BBB+/A3; Call 3/1/2014 (4)	885,000	906,461
Capital Area Cultural Education Facilities Finance Corp., Education, Revenue Bonds, 4.000%, 4/1/2011 NR/WR/WR	400,000	404,360
Capital Area Cultural Education Facilities Finance Corp., Education, Revenue Bonds, 4.000%, 4/1/2012 NR/WR/WR	345,000	353,490
Capital Area Cultural Education Facilities Finance Corp., Education, Revenue Bonds, 5.000%, 4/1/2019 NR/WR/WR	1,000,000	1,058,570
Capital Area Cultural Education Facilities Finance Corp., Education, Revenue Bonds, 5.250%, 4/1/2021 NR/WR/WR; Call 4/1/2020	400,000	425,040
Central Texas Regional Mobility Authority, Transportation, Revenue Bonds, 0.000%, 1/1/2025 BBB-/Baa3	1,000,000	432,280
Central Texas Regional Mobility Authority, Transportation, Revenue Bonds, 5.750%, 1/1/2025 BBB-/Baa3; Call 1/1/2020	250,000	264,970
City of Conroe, General Obligation, GO, MBIA, 5.500%, 3/1/2022 AA-/Aa2; Call 3/1/2017	100,000	115,739
City of El Paso, General Obligation, GO, NATL-RE FGIC, 5.000%, 8/15/2020 AA/Aa2; Call 8/15/2015	135,000	150,155
City of Galveston, General Obligation, GO, 4.250%, 5/1/2014 BBB/Aa3	290,000	308,061
City of Keller, General Obligation, GO, NATL-RE, 5.000%, 2/15/2022 AA/Aa3; Call 2/15/2014	250,000	269,330
City of San Antonio, Power, Revenue Bonds, 5.000%, 2/1/2019 AA/Aa1; Call 2/1/2015	1,900,000	2,154,087
County of Montgomery, General Obligation, GO UT, 5.000%, 3/1/2030 AA/Aa2; Call 3/1/2019	6,000,000	6,614,700
Dallas-Fort Worth International Airport Facilities Improvement Corp., Airport, Revenue Bonds, FSA, 5.500%, 11/1/2018 AAA/Aa3; Call 11/1/2013 (9)	100,000	108,742
Dallas-Fort Worth International Airport Facilities Improvement Corp., Airport, Revenue Bonds, MBIA, 5.875%, 11/1/2017 A+/A1; Call 11/1/2011 (9)	115,000	120,521
Dallas-Fort Worth International Airport Facilities Improvement Corp., Airport, Revenue Bonds, XLCA, 6.125%, 11/1/2018 A+/A1; Call 10/1/2010 (9)	805,000	807,640
Forney Independent School District, School District, GO UT, PSF, 6.000%, 8/15/2037 AAA/NR; Call 8/15/2018	390,000	454,202
Harris County Municipal Utility District No. 290, General Obligation, GO UT, AGC, 5.750%, 9/1/2026 AAA/NR; Call 9/1/2017	265,000	305,256
Harris County Municipal Utility District No. 341, General Obligation, GO UT, FSA, 5.500%, 12/1/2024 AAA/Aa3; Call 12/1/2017	325,000	371,169
Harris County Municipal Utility District No. 374, General Obligation, GO UT, AGC, 5.650%, 9/1/2026 AAA/NR; Call 9/1/2015	325,000	363,870
La Vernia Higher Education Finance Corp., Education, Revenue Bonds, 4.375%, 8/15/2015 BBB/NR	200,000	204,598
La Vernia Higher Education Finance Corp., Education, Revenue Bonds, 4.750%, 8/15/2016 BBB/NR	180,000	186,023
La Vernia Higher Education Finance Corp., Education, Revenue Bonds, 5.000%, 8/15/2017 BBB/NR	150,000	157,535
La Vernia Higher Education Finance Corp., Education, Revenue Bonds, 5.000%, 8/15/2018 BBB/NR	150,000	156,491
La Vernia Higher Education Finance Corp., Education, Revenue Bonds, 5.125%, 8/15/2019 BBB/NR	100,000	104,861
Little Elm Independent School District, School District, GO UT, PSF, 5.000%, 8/15/2020 AAA/NR; Call 8/15/2016	1,145,000	1,322,177
Lower Colorado River Authority, Power, Revenue Bonds, BHAC, 5.250%, 5/15/2028 AA+/Aa1; Call 5/15/2018	550,000	614,053
Lufkin Health Facilities Development Corp., Medical, Revenue Bonds, 5.250%, 2/15/2027 BBB/Baa2; Call 2/15/2017	300,000	293,208
North Texas Tollway Authority, Transportation, Revenue Bonds, 5.750%, 1/1/2038 BBB+/A3; Call 1/1/2018	150,000	159,180
North Texas Tollway Authority, Transportation, Revenue Bonds, 6.125%, 1/1/2031 BBB+/A3; Call 1/1/2016	300,000	326,247
North Texas Tollway Authority, Transportation, Revenue Bonds, Assured Guaranty Corp., 5.750%, 1/1/2038 AAA/Aa3; Call 1/1/2019	1,500,000	1,661,865
Palmer Plantation Municipal Utility District No. 1, General Obligation, GO UT, AMBAC, 4.875%, 9/1/2014 NR/WR; Call 10/1/2010	285,000	285,111
Port of Houston Authority, General Obligation, GO UT, MBIA, 5.100%, 10/1/2026 AAA/Aaa; Call 10/1/2011 (9)	250,000	253,658
Port of Houston Authority, General Obligation, GO UT, NATL-RE, 5.000%, 10/1/2024 AAA/Baa1; Call 10/1/2016 (9)	1,300,000	1,380,288
Potter County Industrial Development Corp., Development, Revenue Bonds, AMBAC, 5.750%, 9/1/2016 A-/Baa1; Call 10/1/2010	235,000	235,879
Texas Department of Housing & Community Affairs, Single Family Housing, Revenue Bonds, GNMA/FNMA, 5.000%, 7/1/2016 AAA/Aaa; Call 7/1/2011 (9)	80,000	80,745

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

74

Marshall Funds

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals (continued)
Texas (continued)
Texas State University Systems, Higher Education, Revenue Bonds, 5.250%, 3/15/2023 AA-/Aa2; Call 3/15/2018	$1,000,000	$    1,166,830
University of Houston, Higher Education, Revenue Bonds, AMBAC, 5.000%, 2/15/2022 AA-/Aa2; Call 2/15/2015	500,000	550,995
Weatherford Independent School District, School District, GO UT, PSF, 0.000%, 2/15/2027 AAA/Aaa; Call 2/15/2011	315,000	122,945
		25,882,109
Utah — 0.5%
City of Herriman, General, Special Assessment, 5.750%, 11/1/2027 A/NR; Call 5/1/2013	350,000	372,484
Grand County School District, School District, GO UT, School Bond Gty, 5.250%, 7/1/2026 NR/Aaa; Call 7/1/2018	500,000	572,690
Utah Associated Municipal Power Systems, Power, Revenue Bonds, AGM, 5.250%, 4/1/2015 AAA/Aa3; Call 4/1/2013	100,000	109,820
Utah Water Finance Agency, Water, Revenue Bonds, AMBAC, 5.250%, 7/1/2014 NR/WR; Call 7/1/2012	1,000,000	1,056,900
		2,111,894
Virgin Islands — 0.4%
Virgin Islands Public Finance Authority, General, Revenue Bonds, 5.000%, 10/1/2017 BBB-/Baa2	1,440,000	1,578,125
Virginia — 0.9%
Greater Richmond Convention Center Authority, Facilities, Revenue Bonds, NATL-RE, 5.000%, 6/15/2021 A/A2; Call 6/15/2015	550,000	587,015
Louisa Industrial Development Authority, Pollution, Revenue Bonds, 5.375%, 12/2/2013 A-/Baa1 (4)	400,000	443,560
Suffolk Redevelopment & Housing Authority, Multi-Family Housing, Revenue Bonds, 4.850%, 7/1/2011 NR/Aaa (4)	1,500,000	1,522,590
Virginia Small Business Financing Authority, Medical, Revenue Bonds, 4.250%, 11/1/2021 AA/Aa2; Call 5/1/2020	1,000,000	1,074,580
		3,627,745
Washington — 1.4%
Grays Harbor County Public Utility District No. 1, Utilities, Revenue Bonds, AGM, 5.250%, 7/1/2019 AAA/Aa3; Call 7/1/2015	425,000	475,567
King County Housing Authority, Multi-Family Housing, Revenue Bonds, 5.200%, 5/1/2028 AAA/NR; Call 11/1/2018	460,000	489,353
King County Housing Authority, Multi-Family Housing, Revenue Bonds, 5.500%, 12/1/2028 AAA/NR; Call 12/1/2018	500,000	529,495
State of Washington, General, Certificate of Participation, 4.000%, 7/1/2018 NR/Aa2	600,000	661,812
Washington Health Care Facilities Authority, Medical, Revenue Bonds, FHA-Insured Mortgage, 6.250%, 8/1/2028 A+/NR; Call 8/1/2018	400,000	454,116
Washington Higher Education Facilities Authority, Higher Education, Revenue Bonds, 5.000%, 4/1/2029 NR/A3; Call 4/1/2019	1,950,000	2,039,875
Washington Higher Education Facilities Authority, Higher Education, Revenue Bonds, 6.250%, 4/1/2029 NR/A3; Call 4/1/2019	1,085,000	1,227,916
		5,878,134
West Virginia — 0.1%
West Virginia State Hospital Finance Authority, Medical, Revenue Bonds, AMBAC, 5.000%, 6/1/2018 A+/A2; Call 6/1/2016	600,000	652,950
Wisconsin — 3.7%
County of Milwaukee, Airport, Revenue Bonds, AMBAC, 5.000%, 12/1/2015 NR/A1 (9)	255,000	276,601
County of Milwaukee, Airport, Revenue Bonds, AMBAC, 5.000%, 12/1/2019 NR/A1; Call 12/1/2016 (9)	495,000	521,804
Ladysmith-Hawkins School District, School District, GO UT, NATL-RE FGIC, 5.500%, 4/1/2020 NR/WR; Call 4/1/2016	1,105,000	1,168,979
Monroe Redevelopment Authority, Medical, Revenue Bonds, 5.500%, 2/15/2029 NR/A3; Call 2/15/2019	1,500,000	1,563,720
Osceola School District, School District, GO UT, NATL-RE FGIC, 5.125%, 5/1/2016 NR/Aa3; Call 11/1/2011	65,000	67,402
State of Wisconsin, General Obligation, GO UT, 5.250%, 5/1/2023 AA/Aa2; Call 5/1/2018	105,000	122,939
State of Wisconsin, General, Revenue Bonds,, 5.250%, 5/1/2020 AA-/Aa3; Call 5/1/2019	1,000,000	1,212,070
Village of Darien, Water, Revenue Bonds, 4.550%, 10/1/2015 NR/NR; Call 10/1/2013	100,000	104,733
West Allis West Milwaukee School District, School District, GO UT, FSA, 3.750%, 4/1/2012 NR/Aa3	60,000	62,818
Wisconsin Center District, General, Revenue Bonds, FSA, 0.000%, 12/15/2028 AAA/Aa3	35,000	15,212

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

75

August 31, 2010

Schedule of Investments

Intermediate Tax-Free Fund (continued)

Description/Credit Ratings (8)	Shares or Principal Amount		Value
Municipals (continued)
Wisconsin (continued)
Wisconsin Health & Educational Facilities Authority, Higher Education, Revenue Bonds, NATL-RE, 5.000%, 12/1/2017 A+/A1; Call 12/1/2014		$   775,000		$       822,329
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.000%, 4/15/2016 NR/A3		1,000,000		1,095,060
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.000%, 6/1/2019 NR/A2		1,220,000		1,316,673
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.000%, 8/15/2019 NR/A3		250,000		264,595
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.250%, 12/1/2020 A+/A1; Call 12/1/2018		1,295,000		1,418,129
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 5.375%, 8/15/2024 AA-/Aa3; Call 2/15/2020		1,625,000		1,814,264
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, FSA, 5.000%, 8/1/2018 AAA/Aa3; Call 4/24/2018		70,000		78,985
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, MBIA, 5.250%, 8/15/2017 NR/A3; Call 10/1/2010		700,000		702,107
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, NATL-RE, 5.750%, 2/15/2027 A/Baa1; Call 10/1/2010		1,000,000		1,003,230
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, RADIAN, 6.250%, 2/15/2029 BBB+/NR; Call 10/1/2010		800,000		803,424
Wisconsin Health & Educational Facilities Authority, Nursing Homes, Revenue Bonds, 5.400%, 9/15/2014 NR/NR; Call 9/15/2011		340,000		341,550
Wisconsin Health & Educational Facilities Authority, Nursing Homes, Revenue Bonds, 6.400%, 9/15/2015 NR/NR; Call 12/15/2011		750,000		754,118
				15,530,742
Wyoming — 0.1%
Wyoming Community Development Authority, Single Family Housing, Revenue Bonds, 4.650%, 6/1/2016 AA+/Aa1 (9)		160,000		166,030
Wyoming Community Development Authority, Single Family Housing, Revenue Bonds, 5.125%, 12/1/2018 AA+/Aa1; Call 6/1/2018 (9)		80,000		84,844
				250,874
Total Municipals (identified cost $371,299,286)				390,653,248
Short-Term Investments — 10.4%
Commercial Paper — 1.4%
Indiana — 1.4%
City of Whiting, 0.850%, 9/7/2010 A-1+/P-1; Call 9/7/2010		3,500,000		3,500,000
City of Whiting, 0.950%, 9/1/2010 A-1+/P-1; Call 9/1/2010		2,500,000		2,500,000
				6,000,000
Mutual Funds — 6.7%
Marshall Tax-Free Money Market Fund, Class I, 0.385% (13)		28,468,389		28,468,389
Short-Term Municipals — 2.3%
California — 0.7%
California Municipal Finance Authority, Development, Revenue Bonds, 1.000%, 9/1/2010 BBB/A-2/NR (4)		$  3,000,000		3,000,000
Iowa — 0.5%
Iowa Higher Education Loan Authority, Student Loan, Revenue Notes, 5.000%, 5/20/2011 NR/NR		2,000,000		2,000,300
Michigan — 0.3%
Michigan Municipal Bond Authority, General, Revenue Notes, 5.000%, 3/21/2011 SP-1/NR		1,200,000		1,201,260
Ohio — 0.7%
Three Rivers Local School District, School District, GO UT, 2.500%, 11/1/2010 NR/NR		3,000,000		3,005,010
West Virginia — 0.1%
City of Beckley, Higher Education, Revenue Notes, 3.500%, 12/17/2010 NR/MIG3; Call 10/1/2010		400,000		399,960
Total Short-Term Municipals				9,606,530
Total Short-Term Investments (identified cost $44,073,914)				44,074,919
Total Investments — 102.8% (identified cost $415,373,200)				434,728,167
Other Assets and Liabilities — (2.8)%				(11,923,779	)
Total Net Assets — 100.0%				$422,804,388

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

76

Marshall Funds

Government Income Fund

Description	Principal Amount	Value
Asset-Backed Securities — 0.6%
Federal Home Loan Mortgage Corporation — 0.2%
0.524%, 8/25/2031, (Series T-32) (4)	$     583,835	$       542,642
Other Financial — 0.4%
Countrywide Asset-Backed Certificates, Class A1, (Series 2007-QH2), 0.504%, 4/25/2037 (4)(6)(7)	2,646,016	1,597,042
Total Asset-Backed Securities (identified cost $3,229,850)		2,139,684
Collateralized Mortgage Obligations — 8.8%
Federal Home Loan Mortgage Corporation — 2.6%
0.626%, 6/15/2025, (Series 2993) (4)	5,047,093	5,015,761
5.000%, 10/15/2029, (Series 2745)	3,086,906	3,119,707
5.000%, 10/15/2031, (Series 2543)	893,372	910,043
5.000%, 5/15/2033, (Series 2791)	1,194,970	1,284,388
		10,329,899
Federal National Mortgage Association — 3.1%
0.514%, 1/25/2031, (Series 2001-25) (4)	746,817	746,608
4.000%, 10/25/2032, (Series 2003-28)	213,351	224,795
5.000%, 10/25/2016, (Series 2003-16)	4,609,348	4,704,452
5.500%, 3/25/2025, (Series 2006-12)	693,238	696,304
5.500%, 8/25/2034, (Series 2005-123)	5,407,000	5,919,378
		12,291,537
Private Sponsor — 3.1%
Chase Mortgage Finance Corp., Class 7A1, (Series 2007-A2), 5.860%, 7/25/2037 (4)	5,338,304	5,171,135
Structured Asset Securities Corp., Class 2A2, (Series 2003-21), 5.250%, 8/25/2033	2,774,226	2,749,790
Thornburg Mortgage Securities Trust, Class A2B, (Series 2007-1), 0.364%, 3/25/2037 (4)	4,430,807	4,261,382
		12,182,307
Total Collateralized Mortgage Obligations (identified cost $34,234,464)		34,803,743
Commercial Mortgage Securities — 9.5%
Private Sponsor — 9.5%
Bear Stearns Commercial Mortgage Securities, Class AM, (Series 2007-PW17), 5.915%, 6/11/2050 (4)	3,000,000	2,692,365
Commercial Mortgage Pass-Through Certificates, Class A2, (Series 2006-FL12), 0.376%, 12/15/2020 (4)(6)(7)	3,776,055	3,588,151

Description	Principal Amount	Value
Commercial Mortgage Securities (continued)
Private Sponsor (continued)
Credit Suisse Mortgage Capital Certificates, Class A1, (Series 2006-TF2A), 0.376%, 10/15/2021 (4)(6)(7)	$   594,556	$       565,587
Credit Suisse Mortgage Capital Certificates, Class A1, (Series 2007-TFLA), 0.346%, 2/15/2022 (4)(6)(7)	3,356,592	3,108,265
Credit Suisse Mortgage Capital Certificates, Class AM, (Series 2007-C5), 5.869%, 9/15/2040 (4)	6,000,000	4,298,538
CW Capital Cobalt, Ltd., Class A4, (Series 2007-C3), 6.013%, 5/15/2046 (4)	5,000,000	5,101,830
Greenwich Capital Commercial Funding Corp., Class A1, (Series 2006-FL4A), 0.390%, 11/5/2021 (4)(6)(7)	408,586	393,375
Greenwich Capital Commercial Funding Corp., Class AM, (Series 2007-GG11), 5.867%, 12/10/2049 (4)	4,000,000	3,466,940
GS Mortgage Securities Corp. II, Class A2, (Series 2007-EOP), 0.425%, 3/6/2020 (4)(6)(7)	4,000,000	3,803,320
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1, (Series 2007-FL1A), 0.651%, 7/15/2019 (4)(6)(7)	2,523,947	2,163,202
Lehman Brothers Commercial Mortgage Trust, Class A1, (Series 2007-LLFA), 0.576%, 6/15/2022 (4)(6)(7)	5,951,549	5,513,003
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class AM, (Series 2007-9), 5.856%, 9/12/2049 (4)	3,000,000	2,619,381
Total Commercial Mortgage Securities (identified cost $39,669,992)		37,313,957
Corporate Bonds & Notes — 1.6%
Diversified Financial Services — 1.0%
Bear Stearns Cos., Inc., 0.656%, 2/1/2012 (4)	4,000,000	3,994,716
Insurance — 0.6%
HSB Capital I, 1.436%, 7/15/2027 (4)	3,000,000	2,314,800
Total Corporate Bonds & Notes (identified cost $6,968,950)		6,309,516
U.S. Government & U.S. Government Agency Obligations — 26.0%
U.S. Treasury Bonds & Notes — 26.0%
1.125%, 6/15/2013 (1)	15,000,000	15,185,190
1.500%, 12/31/2013 (1)	13,000,000	13,298,597
2.250%, 1/31/2015	10,000,000	10,460,160
2.375%, 7/31/2017	10,000,000	10,307,810
2.500%, 6/30/2017 (1)	12,500,000	12,994,137
2.750%, 2/15/2019 (1)	23,000,000	23,907,419
3.500%, 5/15/2020 (1)	15,000,000	16,346,490
Total U.S. Government & U.S. Government Agency Obligations (identified cost $100,459,642)		102,499,803

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

77

August 31, 2010

Schedule of Investments

Government Income Fund (continued)

Description	Principal Amount	Value
U.S. Government Agency-Mortgage Securities — 53.8%
Federal Home Loan Mortgage Corporation — 9.9%
4.500%, 9/15/2040 (5)	$30,000,000	$  31,471,860
5.000%, 8/1/2014	1,139,028	1,195,118
5.000%, 10/1/2033	1,717,453	1,840,717
5.500%, 11/1/2018	1,839,013	1,983,040
5.500%, 10/1/2021	1,664,430	1,791,404
6.500%, 9/1/2016	80,268	86,893
7.500%, 9/1/2013	33,684	36,285
7.500%, 4/1/2024	158,301	178,676
7.500%, 4/1/2027	80,909	92,110
8.000%, 8/1/2030	98,030	112,941
8.500%, 9/1/2024	86,984	101,644
9.000%, 6/1/2019	103,521	114,589
9.500%, 2/1/2025	67,889	75,882
		39,081,159
Federal National Mortgage Association — 41.6%
4.000%, 9/15/2040 (5)	15,000,000	15,536,715
5.000%, 5/1/2018	1,370,827	1,467,578
5.000%, 5/1/2020	2,118,500	2,266,697
5.000%, 7/1/2035	2,791,588	2,981,039
5.000%, 12/1/2036 (1)	18,201,975	19,403,124
5.500%, 8/1/2021	6,972,519	7,514,430
5.500%, 1/1/2023	1,347,159	1,459,111
5.500%, 10/1/2024	1,655,151	1,787,626
5.500%, 8/1/2036	1,578,584	1,692,941
5.500%, 11/1/2036 (1)	12,137,986	13,017,298
5.500%, 12/1/2036 (1)	8,467,204	9,080,594
5.500%, 1/1/2037	882,918	946,879
5.500%, 7/1/2037 (1)	36,258,617	38,820,941
5.500%, 8/1/2037 (1)	5,824,236	6,235,823
5.500%, 8/1/2037 (1)	9,295,461	9,952,353
6.000%, 9/1/2013	273,916	288,654
6.000%, 10/1/2016	281,453	304,148
6.000%, 9/1/2021	2,219,552	2,404,072
6.000%, 2/1/2037 (5)	1,821,744	1,967,992
6.000%, 2/1/2037 (5)	2,169,355	2,343,509
6.000%, 4/1/2037	605,533	653,199
6.000%, 9/14/2040(5)	15,000,000	16,150,785
6.500%, 9/1/2016	183,850	199,414
6.500%, 9/1/2016	382,224	414,583
6.500%, 8/1/2030	2,134,549	2,369,945
6.500%, 12/1/2031	133,728	148,476
6.500%, 11/1/2037	1,357,347	1,468,435
7.000%, 3/1/2029	225,418	255,216
7.000%, 7/1/2029	572,740	648,450
7.000%, 2/1/2030	501,586	567,890
7.500%, 10/1/2030	87,407	99,716
8.000%, 10/1/2028	872,312	1,007,616
8.000%, 4/1/2030	155,839	180,438
		163,635,687
Government National Mortgage Association — 2.3%
5.000%, 4/15/2034	1,304,052	1,410,561
5.500%, 9/15/2033	2,789,782	3,038,998
6.000%, 12/20/2033	3,194,669	3,518,056
6.500%, 9/15/2032	453,267	505,457
7.000%, 6/15/2029	149,736	171,348
7.000%, 8/15/2031	127,486	146,033
9.500%, 10/15/2024	52,847	61,019
		8,851,472
Total U.S. Government Agency-Mortgage Securities (identified cost $198,859,495)		$211,568,318

Description	Principal Amount	Value
Short-Term Investments — 60.7%
Collateral Pool Investment for Securities on Loan — 45.0%
(See Note 2 of the Financial Statements)		$177,400,820
Repurchase Agreement — 15.7%
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $61,666,577 on 9/1/2010, collateralized by U.S. Government Agency Obligations with various maturities to 3/15/2016, with a market value of $62,899,772 (at amortized cost)	$61,666,183	61,666,183
Total Short-Term Investments (identified cost $239,067,003)		239,067,003
Total Investments — 161.0% (identified cost $622,489,396)		633,702,024
Other Assets and Liabilities — (61.0)%		(240,045,462	)
Total Net Assets — 100.0%		$393,656,562

Corporate Income Fund

Description	Principal Amount	Value
Asset-Backed Securities — 9.5%
Automobiles — 9.5%
Capital One Prime Auto Receivables Trust, Class A4, (Series 2007-2), 5.060%, 6/15/2014	$1,000,000	$   1,027,862
DaimlerChrysler Auto Trust, Class A3A, (Series 2007-A), 5.000%, 2/8/2012	39,244	39,395
Ford Credit Auto Owner Trust, Class A3A, (Series 2007-B), 5.150%, 11/15/2011	434,362	438,225
Ford Credit Auto Owner Trust, Class A3A, (Series 2008-A), 3.960%, 4/15/2012	239,382	242,131
Ford Credit Auto Owner Trust, Class A3A, (Series 2008-B), 4.280%, 5/15/2012	809,213	819,742
Hyundai Auto Receivables Trust, Class A3, (Series 2008-A), 4.930%, 12/17/2012	758,680	779,078
Nissan Auto Receivables Owner Trust, Class A3, (Series 2009-1), 5.000%, 9/15/2014	966,150	996,331
USAA Auto Owner Trust, Class A3, (Series 2008-3), 4.280%, 10/15/2012	956,697	969,227
USAA Auto Owner Trust, Class A3, (Series 2009-1), 3.020%, 6/15/2013	1,288,784	1,308,139
Total Asset-Backed Securities (identified cost $6,627,344)		6,620,130

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

78

Marshall Funds

Corporate Income Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes — 82.4%
Advertising — 0.7%
Omnicom Group, Inc., 4.450%, 8/15/2020 (1)	$   500,000	$      513,542
Aerospace/Defense — 0.5%
Embraer Overseas, Ltd., 6.375%, 1/15/2020	350,000	386,750
Agriculture — 3.2%
Altria Group, Inc., 10.200%, 2/6/2039	300,000	434,918
Bunge, Ltd. Finance Corp., 8.500%, 6/15/2019 (1)	250,000	302,779
Lorillard Tobacco Co., 8.125%, 5/1/2040	1,000,000	1,059,458
Reynolds American, Inc., 7.750%, 6/1/2018	350,000	417,077
		2,214,232
Auto Manufacturers — 1.5%
Daimler Finance North America LLC, 7.750%, 1/18/2011 (1)	1,000,000	1,025,542
Banks — 9.7%
Bank of America Corp., 3.700%, 9/1/2015 (1)	1,000,000	999,262
Discover Bank, 7.000%, 4/15/2020	1,000,000	1,070,959
Goldman Sachs Group, Inc., 7.500%, 2/15/2019	300,000	350,412
HSBC Bank USA NA, 4.875%, 8/24/2020 (1)	1,000,000	1,035,219
JPMorgan Chase & Co., 0.664%, 12/21/2011 (4)	1,000,000	998,829
JPMorgan Chase & Co., 0.958%, 2/26/2013 (4)	750,000	751,840
Morgan Stanley, 5.500%, 1/26/2020 (1)	1,000,000	1,014,492
National Agricultural Cooperative Federation, 4.250%, 1/28/2016 (6)(7)	500,000	513,562
		6,734,575
Beverages — 0.7%
PepsiCo, Inc., 0.556%, 7/15/2011 (4)	500,000	500,320
Chemicals — 0.4%
Dow Chemical Co., 8.550%, 5/15/2019 (1)	250,000	313,876
Diversified Financial Services — 9.9%
American Express Credit Corp., 0.492%, 12/2/2010 (4)	1,000,000	999,864
Blackstone Holdings Finance Co. LLC, 6.625%, 8/15/2019 (6)(7)	350,000	373,322
Boeing Capital Corp., 7.375%, 9/27/2010	1,000,000	1,004,678
Caterpillar Financial Services Corp., 1.287%, 6/24/2011 (4)	650,000	654,297
General Electric Capital Corp., 6.875%, 1/10/2039	650,000	763,378
Harley-Davidson Funding Corp., 5.000%, 12/15/2010 (6)(7)	300,000	301,552
Harley-Davidson Funding Corp., 5.750%, 12/15/2014 (6)(7)	750,000	790,096

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Diversified Financial Services (continued)
Jefferies Group, Inc., 6.875%, 4/15/2021	$   500,000	$      532,022
Jefferies Group, Inc., 8.500%, 7/15/2019	350,000	406,702
Merrill Lynch & Co., Inc., 6.875%, 4/25/2018 (1)	250,000	275,541
Nomura Holdings, Inc., 6.700%, 3/4/2020 (1)	700,000	800,883
		6,902,335
Electric — 3.5%
Allegheny Energy Supply Co. LLC, 6.750%, 10/15/2039 (6)(7)	350,000	358,555
CenterPoint Energy Houston Electric LLC, 7.000%, 3/1/2014	250,000	296,490
Dubai Electricity & Water Authority, 8.500%, 4/22/2015 (6)(7)	1,000,000	1,064,015
Nisource Finance Corp., 6.125%, 3/1/2022	350,000	391,426
Progress Energy, Inc., 7.050%, 3/15/2019	250,000	309,686
		2,420,172
Environmental Control — 0.4%
Waste Management, Inc., 7.375%, 3/11/2019 (1)	250,000	313,817
Food — 1.6%
Ralcorp Holdings, Inc., 6.625%, 8/15/2039	1,000,000	1,090,421
Forest Products & Paper — 0.5%
International Paper Co., 8.700%, 6/15/2038	250,000	325,587
Healthcare-Products — 2.2%
Boston Scientific Corp., 6.000%, 1/15/2020 (1)	750,000	793,706
Boston Scientific Corp., 7.000%, 11/15/2035	350,000	361,994
Hospira, Inc., 6.400%, 5/15/2015	300,000	347,022
		1,502,722
Healthcare-Services — 2.1%
Humana, Inc., 8.150%, 6/15/2038	850,000	950,175
Quest Diagnostics, Inc., 6.400%, 7/1/2017	150,000	174,852
UnitedHealth Group, Inc., 1.718%, 2/7/2011 (4)	350,000	352,107
		1,477,134
Home Furnishings — 0.5%
Whirlpool Corp., 8.600%, 5/1/2014 (1)	300,000	359,943
Insurance — 7.7%
Aflac, Inc., 6.450%, 8/15/2040	500,000	526,492
Aflac, Inc., 6.900%, 12/17/2039	295,000	328,570
Aflac, Inc., 8.500%, 5/15/2019	300,000	376,363
American Financial Group, Inc., 9.875%, 6/15/2019	250,000	315,223
Berkshire Hathaway Finance Corp., 0.652%, 1/13/2012 (4)	500,000	500,280

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

79

August 31, 2010

Schedule of Investments

Corporate Income Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Insurance (continued)
Berkshire Hathaway, Inc., 3.200%, 2/11/2015	$   500,000	$      528,484
Lincoln National Corp., 7.000%, 6/15/2040	1,000,000	1,174,690
Marsh & McLennan Cos., Inc., 9.250%, 4/15/2019	300,000	396,153
MetLife, Inc., 1.674%, 8/6/2013 (4)	1,250,000	1,256,394
		5,402,649
Internet — 1.5%
Expedia, Inc., 5.950%, 8/15/2020 (6)(7)	1,000,000	1,026,250
Iron/Steel — 1.5%
ArcelorMittal, 7.000%, 10/15/2039 (1)	1,000,000	1,028,980
Lodging — 1.9%
Wyndham Worldwide Corp., 6.000%, 12/1/2016	500,000	510,935
Wyndham Worldwide Corp., 7.375%, 3/1/2020	750,000	794,591
		1,305,526
Media — 4.3%
CBS Corp., 8.875%, 5/15/2019	250,000	325,367
DirecTV Holdings LLC, 6.000%, 8/15/2040	500,000	528,112
DirecTV Holdings LLC, 6.375%, 6/15/2015	1,000,000	1,040,000
NBC Universal, Inc., 6.400%, 4/30/2040 (6)(7)	500,000	561,825
Time Warner Entertainment Co. LP, 10.150%, 5/1/2012	200,000	227,805
Viacom, Inc., 6.125%, 10/5/2017	250,000	293,548
		2,976,657
Mining — 2.6%
Alcoa, Inc., 6.150%, 8/15/2020 (1)	1,000,000	1,010,649
Rio Tinto Finance USA, Ltd., 8.950%, 5/1/2014	300,000	368,271
Rio Tinto Finance USA, Ltd., 9.000%, 5/1/2019	100,000	136,870
Vale Overseas, Ltd., 6.875%, 11/21/2036	250,000	285,289
		1,801,079
Miscellaneous Manufacturing — 0.2%
Tyco Electronics Group SA, 6.550%, 10/1/2017	130,000	152,228
Multi-National — 0.7%
Corp Andina de Fomento, 3.750%, 1/15/2016	500,000	501,408
Oil & Gas — 9.6%
Anadarko Petroleum Corp., 6.450%, 9/15/2036 (1)	1,000,000	869,845
Chesapeake Energy Corp., 6.625%, 8/15/2020 (1)	1,000,000	1,008,750
Hess Corp., 8.125%, 2/15/2019 (1)	300,000	391,627
Nabors Industries, Inc., 9.250%, 1/15/2019 (1)	250,000	322,392

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Oil & Gas (continued)
Nexen, Inc., 7.500%, 7/30/2039 (1)	$   250,000	$      314,641
Pride International, Inc., 6.875%, 8/15/2020	1,000,000	1,053,750
Rowan Cos., Inc., 5.000%, 9/1/2017	1,000,000	1,007,216
Talisman Energy, Inc., 7.750%, 6/1/2019	300,000	379,154
Valero Energy Corp., 6.125%, 2/1/2020 (1)	500,000	546,492
Valero Energy Corp., 6.625%, 6/15/2037	500,000	508,136
Valero Energy Corp., 9.375%, 3/15/2019	250,000	319,057
		6,721,060
Oil & Gas Services — 0.7%
Weatherford International, Ltd., 9.625%, 3/1/2019 (1)	250,000	328,518
Weatherford International, Ltd., 9.875%, 3/1/2039	100,000	140,224
		468,742
Packaging & Containers — 2.5%
Ball Corp., 6.625%, 3/15/2018	750,000	772,500
Ball Corp., 7.125%, 9/1/2016	350,000	377,125
Bemis Co., Inc., 6.800%, 8/1/2019	500,000	599,281
		1,748,906
Pharmaceuticals — 1.4%
Express Scripts, Inc., 6.250%, 6/15/2014	250,000	288,437
McKesson Corp., 7.500%, 2/15/2019	350,000	447,066
Teva Pharmaceutical Finance III LLC, 0.939%, 12/19/2011 (4)	250,000	250,961
		986,464
Pipelines — 1.5%
Energy Transfer Partners LP, 9.000%, 4/15/2019	250,000	313,201
Enterprise Products Operating LLC, 6.450%, 9/1/2040 (1)	500,000	560,228
Kinder Morgan Energy Partners LP, 9.000%, 2/1/2019	150,000	196,082
		1,069,511
Real Estate — 0.7%
Qatari Diar Finance QSC, 3.500%, 7/21/2015 (6)(7)	500,000	510,641
Retail — 2.1%
AutoZone, Inc., 5.750%, 1/15/2015 (1)	400,000	446,165
JC Penney Corp., Inc., 7.125%, 11/15/2023	200,000	208,500
Kohl’s Corp., 6.875%, 12/15/2037 (1)	150,000	189,894
Staples, Inc., 9.750%, 1/15/2014	250,000	310,565
TJX Cos., Inc., 6.950%, 4/15/2019	250,000	319,344
		1,474,468
Semiconductors — 0.2%
Kla-Tencor Corp., 6.900%, 5/1/2018	100,000	115,343

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

80

Marshall Funds

Corporate Income Fund (continued)

Description	Shares or Principal Amount	Value
Corporate Bonds & Notes (continued)
Sovereign — 0.8%
South Africa Government International Bond, 5.500%, 3/9/2020	$   500,000	$      558,125
Telecommunications — 4.6%
Frontier Communications Corp., 8.125%, 10/1/2018 (1)	750,000	798,750
Frontier Communications Corp., 9.000%, 8/15/2031 (1)	1,000,000	1,022,500
Telecom Italia Capital SA, 7.721%, 6/4/2038 (1)	1,000,000	1,126,382
TELUS Corp., 8.000%, 6/1/2011	250,000	262,784
		3,210,416
Transportation — 0.5%
FedEx Corp., 8.000%, 1/15/2019 (1)	250,000	325,576
Total Corporate Bonds & Notes (identified cost $52,527,254)		57,464,997
Short-Term Investments — 28.0%
Collateral Pool Investment for Securities on Loan — 20.2%
(See Note 2 of the Financial Statements)		14,071,118
Commercial Paper — 3.6%
Pepsico, Inc., 0.170%, 9/7/2010 (11)	1,500,000	1,499,958
United Parcel Service, Inc., 0.120%, 9/22/2010 (11)	1,000,000	999,930
		2,499,888
Mutual Funds — 2.8%
Marshall Prime Money Market Fund, Class I, 0.306% (13)	1,964,977	1,964,977
U.S. Treasury Bills — 1.4%
0.160%, 1/6/2011 (11)	$1,000,000	999,524
Total Short-Term Investments (identified cost $19,535,436)		19,535,507
Total Investments — 119.9% (identified cost $78,690,034)		83,620,634
Other Assets and Liabilities — (19.9)%		(13,875,685	)
Total Net Assets — 100.0%		$69,744,949

Aggregate Bond Fund

Description	Principal Amount	Value
Collateralized Mortgage Obligations — 2.8%
Federal National Mortgage Association — 1.1%
5.500%, 3/25/2025, (Series 2006-12)	$  286,320	$     287,586
5.500%, 8/25/2034, (Series 2005-123)	3,000,000	3,284,286
		3,571,872
Private Sponsor — 1.7%
Chase Mortgage Finance Corp., Class 7A1, (Series 2007-A2), 5.860%, 7/25/2037 (4)	3,202,982	3,102,681

Description	Principal Amount	Value
Collateralized Mortgage Obligations (continued)
Private Sponsor (continued)
JP Morgan Mortgage Trust, Class 2A1, (Series 2006-A3), 5.541%, 5/25/2036 (4)	$     914,625	$        809,046
PHH Alternative Mortgage Trust, Class 1A1, (Series 2007-2), 0.374%, 5/25/2037 (4)	506,935	484,008
Wells Fargo Mortgage Backed Securities Trust, Class 2A4, (Series 2006-AR8), 3.808%, 4/25/2036 (4)	823,658	776,939
		5,172,674
Total Collateralized Mortgage Obligations (identified cost $8,541,862)		8,744,546
Commercial Mortgage Securities — 6.1%
Private Sponsor — 6.1%
Bear Stearns Commercial Mortgage Securities, Class AM, (Series 2007-PW17), 5.915%, 6/11/2050 (4)	3,000,000	2,692,365
Commercial Mortgage Pass-Through Certificates, Class A2, (Series 2006-FL12), 0.376%, 12/15/2020 (4)(6)(7)	2,517,370	2,392,100
Credit Suisse Mortgage Capital Certificates, Class A1, (Series 2007-TFLA), 0.346%, 2/15/2022 (4)(6)(7)	2,517,444	2,331,199
Credit Suisse Mortgage Capital Certificates, Class AM, (Series 2007-C5), 5.869%, 9/15/2040 (4)	3,000,000	2,149,269
GS Mortgage Securities Corp. II, Class A2, (Series 2007-EOP), 0.425%, 3/6/2020 (4)(6)(7)	2,500,000	2,377,075
JP Morgan Chase Commercial Mortgage Securities Corp., Class A1, (Series 2007-FL1A), 0.651%, 7/15/2019 (4)(6)(7)	2,523,947	2,163,202
Lehman Brothers Commercial Mortgage Trust, Class A1, (Series 2007-LLFA), 0.576%, 6/15/2022 (4)(6)(7)	3,719,718	3,445,627
Merrill Lynch/Countrywide Commercial Mortgage Trust, Class AM, (Series 2007-9), 5.856%, 9/12/2049 (4)	2,000,000	1,746,254
Total Commercial Mortgage Securities (identified cost $20,628,683)		19,297,091
Corporate Bonds & Notes — 30.2%
Advertising — 0.7%
WPP Finance UK, 8.000%, 9/15/2014 (1)	2,000,000	2,355,040
Banks — 10.8%
Abbey National Treasury Services PLC/London, 3.875%, 11/10/2014 (6)(7)	1,500,000	1,529,523

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

81

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Schedule of Investments

Aggregate Bond Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Banks (continued)
ANZ National Int’l, Ltd./London, 2.375%, 12/21/2012 (6)(7)	$  3,000,000	$     3,041,814
Australia & New Zealand Banking Group, Ltd., 3.700%, 1/13/2015 (1)(6)(7)	2,000,000	2,093,050
Banco Santander Chile, 2.875%, 11/13/2012 (1)(6)(7)	2,000,000	2,031,098
Bank of America Corp., 5.625%, 7/1/2020 (1)	2,000,000	2,064,320
Bank of New York Mellon Corp., 5.125%, 8/27/2013	2,000,000	2,225,496
BB&T Corp., 3.850%, 7/27/2012	3,000,000	3,143,853
Citigroup, Inc., 4.750%, 5/19/2015 (1)	2,000,000	2,062,532
Commonwealth Bank of Australia, 5.000%, 10/15/2019 (1)(6)(7)	1,500,000	1,622,637
Credit Suisse/New York, 3.450%, 7/2/2012	3,000,000	3,108,477
Goldman Sachs Group, Inc., 6.000%, 6/15/2020 (1)	2,500,000	2,698,082
Morgan Stanley, 4.000%, 7/24/2015 (1)	2,525,000	2,539,506
Rabobank Nederland NV, 3.200%, 3/11/2015 (6)(7)	1,800,000	1,864,017
Santander Issuances SA Unipersonal, 6.500%, 8/11/2019 (4)(6)(7)	1,500,000	1,577,279
Santander U.S. Debt SA Unipersonal, 1.333%, 3/30/2012 (4)(6)(7)	2,500,000	2,464,398
		34,066,082
Biotechnology — 0.7%
Life Technologies Corp., 6.000%, 3/1/2020 (1)	2,000,000	2,287,066
Building Materials — 1.7%
CRH America, Inc., 6.000%, 9/30/2016	3,000,000	3,300,417
Holcim U.S. Finance Sarl & Cie SCS, 6.000%, 12/30/2019 (6)(7)	2,000,000	2,166,988
		5,467,405
Diversified Financial Services — 2.7%
American Honda Finance Corp., 6.700%, 10/1/2013 (6)(7)	2,000,000	2,288,288
General Electric Capital Corp., 5.875%, 1/14/2038 (1)	2,000,000	2,063,562
Genworth Global Funding Trusts, 5.200%, 10/8/2010	2,000,000	2,007,736
Invesco, Ltd., 5.375%, 12/15/2014	1,958,000	2,060,901
		8,420,487

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Electronics — 0.7%
Agilent Technologies, Inc., 5.000%, 7/15/2020 (1)	$  2,000,000	$     2,127,248
Food — 0.5%
Kraft Foods, Inc., 5.375%, 2/10/2020 (1)	1,500,000	1,670,098
Healthcare-Products — 1.7%
Boston Scientific Corp., 6.000%, 1/15/2020 (1)	2,000,000	2,116,548
CareFusion Corp., 5.125%, 8/1/2014	3,000,000	3,300,498
		5,417,046
Home Furnishings — 0.7%
Whirlpool Corp., 8.000%, 5/1/2012	2,000,000	2,184,310
Insurance — 4.2%
Berkshire Hathaway, Inc., 0.834%, 2/11/2013 (4)	2,000,000	2,010,970
Berkshire Hathaway, Inc., 3.200%, 2/11/2015 (1)	1,500,000	1,585,453
Genworth Life Institutional Funding Trust, 5.875%, 5/3/2013 (6)(7)	2,000,000	2,104,578
MetLife, Inc., 4.750%, 2/8/2021 (1)	3,000,000	3,143,280
Metropolitan Life Global Funding I, 0.927%, 7/13/2011 (4)(6)(7)	2,500,000	2,505,240
Progressive Corp., 6.700%, 6/15/2037 (4)	2,000,000	1,902,530
		13,252,051
Iron/Steel — 0.7%
ArcelorMittal, 5.375%, 6/1/2013 (1)	2,000,000	2,133,842
Media — 1.1%
NBC Universal, Inc., 5.150%, 4/30/2020 (6)(7)	1,000,000	1,078,440
NBC Universal, Inc., 6.400%, 4/30/2040 (6)(7)	2,000,000	2,247,300
		3,325,740
Oil & Gas — 0.3%
NuStar Logistics LP, 4.800%, 9/1/2020	1,000,000	1,017,025
Pipelines — 1.7%
Enbridge Energy Partners LP, 5.200%, 3/15/2020 (1)	2,000,000	2,160,002
Enterprise Products Operating LLC, 5.200%, 9/1/2020	2,000,000	2,161,020
TransCanada PipeLines, Ltd., 6.100%, 6/1/2040	1,000,000	1,152,142
		5,473,164
Real Estate Investment Trusts — 0.6%
ProLogis, 6.250%, 3/15/2017	1,800,000	1,746,704
Software — 0.7%
Oracle Corp., 5.375%, 7/15/2040 (1)(6)(7)	2,000,000	2,176,336
Toys/Games/Hobbies — 0.7%
Hasbro, Inc., 6.350%, 3/15/2040	2,000,000	2,083,466
Total Corporate Bonds & Notes (identified cost $89,525,673)		95,203,110

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

82

Marshall Funds

Aggregate Bond Fund (continued)

Description/Credit Ratings (8)	Principal Amount	Value
Municipals — 3.0%
Georgia — 0.7%
Municipal Electric Authority of Georgia, Power, Revenue Bonds, 6.655%, 4/1/2057 A+/A2	$  2,000,000	$     2,086,800
Illinois — 1.7%
State of Illinois, General Obligation, GO UT, 4.850%, 7/1/2015 A+/A1	2,000,000	2,083,660
State of Illinois, General Obligation, GO UT, 6.200%, 7/1/2021 A+/A1	3,000,000	3,122,130
		5,205,790
Ohio — 0.6%
Olentangy Local School District, School District, GO UT, 6.190%, 12/1/2036 AA+/Aa1; Call Date 12/1/2019	1,900,000	2,007,920
Total Municipals (identified cost $8,898,643)		9,300,510
U.S. Government & U.S. Government Agency Obligations — 35.1%
U.S. Treasury Bonds & Notes — 35.1%
1.125%, 6/15/2013 (1)	15,000,000	15,185,190
1.375%, 11/15/2012 (1)	15,000,000	15,274,215
1.500%, 12/31/2013 (1)	10,000,000	10,229,690
2.250%, 1/31/2015 (1)	10,000,000	10,460,160
2.375%, 7/31/2017	10,000,000	10,307,810
2.500%, 6/30/2017 (1)	7,500,000	7,796,482
2.750%, 5/31/2017 (1)	9,000,000	9,502,029
2.750%, 2/15/2019 (1)	17,000,000	17,670,701
3.500%, 5/15/2020 (1)	10,000,000	10,897,660
4.375%, 5/15/2040 (1)	3,000,000	3,461,718
Total U.S. Government & U.S. Government Agency Obligations (identified cost $108,515,274)		110,785,655
U.S. Government Agency-Mortgage Securities — 16.3%
Federal Home Loan Mortgage Corporation — 6.6%
4.500%, 9/15/2040 (5)	20,000,000	20,981,240
Federal National Mortgage Association — 9.7%
4.000%, 9/15/2040 (5)	10,000,000	10,357,810
5.000%, 7/1/2022	3,455,696	3,678,342
5.000%, 1/1/2037 (1)	5,165,969	5,506,872
5.500%, 5/1/2037 (1)	8,318,883	8,906,762
5.500%, 7/1/2038	1,225,647	1,312,261
6.500%, 11/1/2037	678,673	734,217
		30,496,264
Total U.S. Government Agency-Mortgage Securities (identified cost $49,222,630)		51,477,504
Short-Term Investments — 60.8%
Collateral Pool Investment for Securities on Loan — 46.4%
(See Note 2 of the Financial Statements)		146,178,911

Description	Principal Amount	Value
Short-Term Investments (continued)
Repurchase Agreement — 14.4%
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $45,447,631 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 3/15/2016, with a market value of $46,356,952 (at amortized cost)	$45,447,341	$   45,447,341
Total Short-Term Investments (identified cost $191,626,252)		191,626,252
Total Investments — 154.3% (identified cost $476,959,017)		486,434,668
Other Assets and Liabilities — (54.3)%		(171,199,116	)
Total Net Assets — 100.0%		$315,235,552

Core Plus Bond Fund

Description	Principal Amount	Value
Asset-Backed Securities — 5.6%
Automobiles — 5.6%
Capital One Prime Auto Receivables Trust, Class A4, (Series 2007-2), 5.060%, 6/15/2014	$   750,000	$      770,897
Ford Credit Auto Owner Trust, Class A3A, (Series 2008-B), 4.280%, 5/15/2012	809,213	819,742
Nissan Auto Receivables Owner Trust, Class A3, (Series 2008-B), 4.460%, 4/16/2012	497,758	505,593
Nissan Auto Receivables Owner Trust, Class A3, (Series 2009-1), 5.000%, 9/15/2014	966,150	996,331
USAA Auto Owner Trust, Class A3, (Series 2009-1), 3.020%, 6/15/2013	1,116,946	1,133,720
Total Asset-Backed Securities (identified cost $4,233,237)		4,226,283
Commercial Mortgage Securities — 3.2%
Private Sponsor — 3.2%
Bear Stearns Commercial Mortgage Securities, Class A4, (Series 2007-T28), 5.742%, 9/11/2042 (4)	500,000	549,651
CS First Boston Mortgage Securities Corp., Class A2, (Series 2005-C5), 5.100%, 8/15/2038 (4)	914,967	915,218
JP Morgan Chase Commercial Mortgage Securities Corp., Class A2, (Series 2005-CB13), 5.247%, 1/12/2043	964,818	967,997
Total Commercial Mortgage Securities (identified cost $2,115,309)		2,432,866

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

83

August 31, 2010

Schedule of Investments

Core Plus Bond Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes — 62.0%
Aerospace/Defense — 0.7%
Embraer Overseas, Ltd., 6.375%, 1/15/2020	$   500,000	$      552,500
Agriculture — 3.7%
Altria Group, Inc., 10.200%, 2/6/2039	250,000	362,432
Bunge, Ltd. Finance Corp., 8.500%, 6/15/2019 (1)	500,000	605,559
Lorillard Tobacco Co., 8.125%, 5/1/2040	1,000,000	1,059,458
Reynolds American, Inc., 7.750%, 6/1/2018	650,000	774,571
		2,802,020
Banks — 6.2%
Discover Bank, 7.000%, 4/15/2020	1,000,000	1,070,959
Goldman Sachs Group, Inc., 7.500%, 2/15/2019	700,000	817,628
HSBC Bank USA NA, 4.875%, 8/24/2020 (1)	750,000	776,414
JPMorgan Chase & Co., 0.958%, 2/26/2013 (4)	500,000	501,227
Korea Development Bank/Republic of Korea, 4.375%, 8/10/2015 (1)	500,000	530,938
Morgan Stanley, 4.000%, 7/24/2015 (1)	500,000	502,873
National Agricultural Cooperative Federation, 4.250%, 1/28/2016 (6)(7)	500,000	513,562
		4,713,601
Chemicals — 1.0%
Dow Chemical Co., 9.400%, 5/15/2039 (1)	500,000	711,912
Diversified Financial Services — 5.8%
Blackstone Holdings Finance Co. LLC, 6.625%, 8/15/2019 (6)(7)	400,000	426,653
Caterpillar Financial Services Corp., 1.287%, 6/24/2011 (4)	250,000	251,653
General Electric Capital Corp., 6.875%, 1/10/2039	500,000	587,214
Harley-Davidson Funding Corp., 5.000%, 12/15/2010 (6)(7)	500,000	502,587
Harley-Davidson Funding Corp., 5.750%, 12/15/2014 (6)(7)	600,000	632,077
Jefferies Group, Inc., 6.875%, 4/15/2021	500,000	532,022
Jefferies Group, Inc., 8.500%, 7/15/2019	350,000	406,702
Merrill Lynch & Co., Inc., 6.875%, 4/25/2018 (1)	250,000	275,541
Nomura Holdings, Inc., 6.700%, 3/4/2020 (1)	650,000	743,677
		4,358,126
Electric — 2.8%
Allegheny Energy Supply Co. LLC, 6.750%, 10/15/2039 (6)(7)	250,000	256,111

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Electric (continued)
CenterPoint Energy Houston Electric LLC, 7.000%, 3/1/2014	$   250,000	$      296,490
Dubai Electricity & Water Authority, 8.500%, 4/22/2015 (6)(7)	1,000,000	1,064,015
Nisource Finance Corp., 6.125%, 3/1/2022	150,000	167,754
Progress Energy, Inc., 7.050%, 3/15/2019	250,000	309,686
		2,094,056
Environmental Control — 0.4%
Waste Management, Inc., 7.375%, 3/11/2019	250,000	313,817
Food — 1.5%
Ralcorp Holdings, Inc., 6.625%, 8/15/2039	1,000,000	1,090,421
Forest Products & Paper — 0.4%
International Paper Co., 8.700%, 6/15/2038	250,000	325,587
Healthcare-Products — 1.8%
Boston Scientific Corp., 6.000%, 1/15/2020 (1)	500,000	529,137
Boston Scientific Corp., 7.000%, 11/15/2035	250,000	258,567
Hospira, Inc., 6.400%, 5/15/2015	500,000	578,371
		1,366,075
Healthcare-Services — 1.7%
Humana, Inc., 8.150%, 6/15/2038	500,000	558,926
Quest Diagnostics, Inc., 6.400%, 7/1/2017	250,000	291,420
UnitedHealth Group, Inc., 1.718%, 2/7/2011 (4)	450,000	452,709
		1,303,055
Home Furnishings — 1.1%
Whirlpool Corp., 8.600%, 5/1/2014	700,000	839,867
Insurance — 4.3%
Aflac, Inc., 8.500%, 5/15/2019	700,000	878,181
American Financial Group, Inc., 9.875%, 6/15/2019	250,000	315,223
Berkshire Hathaway Finance Corp., 0.652%, 1/13/2012 (4)	500,000	500,280
Lincoln National Corp., 7.000%, 6/15/2040	500,000	587,345
Marsh & McLennan Cos., Inc., 9.250%, 4/15/2019	350,000	462,178
MetLife, Inc., 1.674%, 8/6/2013 (4)	500,000	502,557
		3,245,764
Internet — 1.4%
Expedia, Inc., 5.950%, 8/15/2020 (6)(7)	1,000,000	1,026,250
Iron/Steel — 0.7%
ArcelorMittal, 7.000%, 10/15/2039	500,000	514,490
Lodging — 1.2%
Wyndham Worldwide Corp., 6.000%, 12/1/2016	400,000	408,748

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

84

Marshall Funds

Core Plus Bond Fund (continued)

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Lodging (continued)
Wyndham Worldwide Corp., 7.375%, 3/1/2020	$   500,000	$      529,727
		938,475
Media — 3.0%
CBS Corp., 8.875%, 5/15/2019 (1)	500,000	650,733
DirecTV Holdings LLC, 6.000%, 8/15/2040	500,000	528,112
DirecTV Holdings LLC, 6.375%, 6/15/2015	500,000	520,000
Time Warner Entertainment Co. LP, 10.150%, 5/1/2012	250,000	284,756
Viacom, Inc., 6.125%, 10/5/2017	250,000	293,548
		2,277,149
Mining — 2.8%
Alcoa, Inc., 6.150%, 8/15/2020 (1)	1,000,000	1,010,649
Rio Tinto Finance USA, Ltd., 8.950%, 5/1/2014	350,000	429,650
Rio Tinto Finance USA, Ltd., 9.000%, 5/1/2019	400,000	547,481
Vale Overseas, Ltd., 6.875%, 11/10/2039	125,000	143,771
		2,131,551
Multi-National — 0.7%
Corp Andina de Fomento, 3.750%, 1/15/2016	500,000	501,408
Oil & Gas — 8.8%
Anadarko Petroleum Corp., 6.450%, 9/15/2036 (1)	500,000	434,923
Chesapeake Energy Corp., 6.625%, 8/15/2020 (1)	1,000,000	1,008,750
Ecopetrol SA, 7.625%, 7/23/2019 (1)	500,000	598,750
Hess Corp., 8.125%, 2/15/2019 (1)	250,000	326,356
Nabors Industries, Inc., 9.250%, 1/15/2019 (1)	250,000	322,392
Nexen, Inc., 7.500%, 7/30/2039 (1)	500,000	629,282
Pride International, Inc., 7.875%, 8/15/2040	1,000,000	1,057,500
Rowan Cos., Inc., 5.000%, 9/1/2017	500,000	503,608
Talisman Energy, Inc., 7.750%, 6/1/2019	700,000	884,691
Valero Energy Corp., 6.125%, 2/1/2020 (1)	500,000	546,492
Valero Energy Corp., 9.375%, 3/15/2019	250,000	319,057
		6,631,801
Oil & Gas Services — 0.4%
Weatherford International, Ltd., 9.625%, 3/1/2019 (1)	250,000	328,518
Packaging & Containers — 2.1%
Ball Corp., 6.625%, 3/15/2018	500,000	515,000
Ball Corp., 7.125%, 9/1/2016	150,000	161,625
Bemis Co., Inc., 6.800%, 8/1/2019	750,000	898,922
		1,575,547

Description	Principal Amount	Value
Corporate Bonds & Notes (continued)
Pharmaceuticals — 1.7%
Express Scripts, Inc., 6.250%, 6/15/2014	$   500,000	$      $576,874
McKesson Corp., 7.500%, 2/15/2019	350,000	447,066
Teva Pharmaceutical Finance III LLC, 0.939%, 12/19/2011 (4)	250,000	250,961
		1,274,901
Pipelines — 0.9%
Energy Transfer Partners LP, 9.000%, 4/15/2019	250,000	313,201
Kinder Morgan Energy Partners LP, 9.000%, 2/1/2019	250,000	326,804
		640,005
Real Estate — 0.3%
Qatari Diar Finance QSC, 3.500%, 7/21/2015 (6)(7)	250,000	255,320
Retail — 1.7%
AutoZone, Inc., 5.750%, 1/15/2015 (1)	600,000	669,247
JC Penney Corp., Inc., 7.125%, 11/15/2023	300,000	312,750
Staples, Inc., 9.750%, 1/15/2014	250,000	310,566
		1,292,563
Semiconductors — 0.2%
Kla-Tencor Corp., 6.900%, 5/1/2018	100,000	115,343
Sovereign — 1.4%
Korea Expressway Corp., 4.500%, 3/23/2015 (6)(7)	500,000	526,453
South Africa Government International Bond, 5.500%, 3/9/2020	500,000	558,125
		1,084,578
Telecommunications — 2.9%
Frontier Communications Corp., 8.125%, 10/1/2018 (1)	500,000	532,500
Frontier Communications Corp., 9.000%, 8/15/2031	1,000,000	1,022,500
Telecom Italia Capital SA, 7.721%, 6/4/2038 (1)	500,000	563,191
TELUS Corp., 8.000%, 6/1/2011	100,000	105,114
		2,223,305
Transportation — 0.4%
FedEx Corp., 8.000%, 1/15/2019 (1)	250,000	325,576
Total Corporate Bonds & Notes (identified cost $41,421,119)		46,853,581
U.S. Government & U.S. Government Agency Obligations —9.1%
U.S. Treasury Bonds & Notes — 9.1%
2.000%, 4/15/2012 (1)	1,074,170	1,110,507
2.125%, 1/15/2019 (1)	1,522,860	1,692,041
2.375%, 4/15/2011 (1)	1,647,255	1,668,875
3.500%, 1/15/2011	1,878,585	1,898,838
3.500%, 2/15/2018	500,000	552,305
Total U.S. Government & U.S. Government Agency Obligations (identified cost $6,797,122)		6,922,566

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

85

August 31, 2010

Schedule of Investments

Core Plus Bond Fund (continued)

Description	Shares or Principal Amount	Value
U.S. Government Agency-Mortgage Securities — 8.5%
Federal Home Loan Mortgage Corporation — 1.9%
5.000%, 2/1/2039	$1,372,300	$  1,458,355
Federal National Mortgage Association —1.9%
6.000%, 12/1/2038	662,101	713,598
6.500%, 10/1/2037	654,195	714,380
		1,427,978
Government National Mortgage Association — 4.7%
5.500%, 2/15/2039	1,036,893	1,124,337
6.000%, 10/15/2038	415,202	452,729
6.000%, 12/15/2038	1,129,305	1,231,376
6.000%, 1/15/2039	666,029	726,227
		3,534,669
Total U.S. Government Agency-Mortgage Securities (identified cost $6,134,473)		6,421,002
Short-Term Investments — 36.5%
Collateral Pool Investment for Securities on Loan — 24.4%
(See Note 2 of the Financial Statements)		18,448,345
Commercial Paper — 2.0%
United Parcel Service, Inc., 0.120%, 9/22/2010 (11)	1,500,000	1,499,895
Mutual Funds — 4.8%
Marshall Prime Money Market Fund, Class I, 0.306% (13)	3,662,916	3,662,916
U.S. Treasury Bills — 5.3%
0.140%, 9/16/2010 (1)(11)	$2,500,000	2,499,837
0.160%, 1/6/2011 (11)	1,500,000	1,499,286
		3,999,123
Total Short-Term Investments (identified cost $27,610,190)		27,610,279
Total Investments — 124.9% (identified cost $88,311,450)		94,466,577
Other Assets and Liabilities — (24.9)%		(18,840,041	)
Total Net Assets — 100.0%		$75,626,536

Government Money Market Fund

Description	Principal Amount	Value
Commercial Paper — 3.7%
Asset-Backed Securities — 3.7%
Straight - A Funding, 0.310%, 10/25/2010 (6)(7)(11)	$25,000,000	$  24,988,375
Total Commercial Paper		24,988,375
Municipals — 17.4%
California — 13.6%
California Housing Finance Agency, Single Family Housing, Revenue Bonds, 0.290%, 2/1/2016 (4)(9)	19,925,000	19,925,000
California Statewide Communities Development Authority, Multi-Family Housing, Revenue Bonds, FNMA, 0.290%, 12/15/2037, Call Date 9/15/2010 (4)(9)	25,000,000	25,000,000

Description	Principal Amount	Value
Municipals (continued)
California (continued)
San Francisco City & County Redevelopment Agency, Multi-Family Housing, Revenue Bonds, FNMA, 0.280%, 6/15/2034, Call Date 9/15/2010 (4)(9)	$21,100,000	$  21,100,000
Southern California Home Financing Authority, Single Family Housing, Revenue Bonds, 0.290%, 2/1/2034, Call Date 9/1/2010 (4)(9)	25,040,000	25,040,000
		91,065,000
New York — 3.8%
New York State Housing Finance Agency, Multi-Family Housing, Revenue Bonds, FNMA, 0.300%, 5/15/2032, Call Date 9/1/2010 (4)(9)	25,000,000	25,000,000
Total Municipals		116,065,000
U.S. Government & U.S. Government Agency Obligations — 18.1%
Federal Home Loan Bank — 9.7%
0.195%, 11/19/2010 (4)	25,000,000	24,998,877
0.291%, 2/10/2012 (4)	20,000,000	19,991,028
0.497%, 10/13/2011 (4)	20,000,000	20,023,682
		65,013,587
Federal Home Loan Mortgage Corporation — 7.5%
0.508%, 9/24/2010 (4)	50,000,000	49,999,360
Federal National Mortgage Association — 0.9%
0.250%, 1/18/2011 (11)	6,000,000	5,994,208
Total U.S. Government & U.S. Government Agency Obligations		121,007,155
Repurchase Agreements — 60.8%
Agreement with Barclays Capital, Inc., 0.240%, dated 8/31/2010, to be repurchased at $155,001,033 on 9/1/2010, collateralized by a U.S. Government Treasury Obligation with a maturity of 8/31/2012, with a market value of $158,100,059	155,000,000	155,000,000
Agreement with Cantor Fitzgerald, Inc., 1.000%, dated 8/31/2010, to be repurchased at $10,000,278 on 9/1/2010, collateralized by U.S. Government Agency Obligations with various maturities to 3/25/2035, with a market value of $10,200,001	10,000,000	10,000,000
Agreement with Deutsche Bank Alex Brown, Inc., 0.250%, dated 8/31/2010, to be repurchased at $150,001,042 on 9/1/2010, collateralized by U.S. Government Agency Obligations with various maturities to 2/1/2038, with a market value of $153,000,000	150,000,000	150,000,000

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

86

Marshall Funds

Government Money Market Fund (continued)

Description	Principal Amount	Value
Repurchase Agreements (continued)
Agreement with Fixed Income Clearing Corp., 0.100%, dated 8/31/2010, to be repurchased at $15,628,243 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 4/15/2013, with a market value of $15,944,175	$15,628,199	$  15,628,199
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $75,000,479 on 9/1/2010, collateralized by U.S. Government Agency Obligations with various maturities to 12/10/2014, with a market value of $76,500,028	75,000,000	75,000,000
Total Repurchase Agreements		405,628,199
Total Investments — 100.0% (at amortized cost)		667,688,729
Other Assets and Liabilities — 0.0%		(51,044	)
Total Net Assets — 100.0%		$667,637,685

Tax-Free Money Market Fund

Description	Principal Amount	Value
Municipals — 98.7%
Alabama — 2.9%
City of Gardendale, Multi-Family Housing, Revenue Bonds, 0.390%, 10/1/2032, Call 9/1/2010 (4)	$  1,465,000	$    1,465,000
City of Gardendale, Multi-Family Housing, Revenue Bonds, 0.390%, 10/1/2032, Call 9/1/2010 (4)	1,584,000	1,584,000
City of Gardendale, Multi-Family Housing, Revenue Bonds, 0.390%, 10/1/2032, Call 9/1/2010 (4)	3,200,000	3,200,000
JP Morgan Chase Putters/Drivers Trust, Higher Education, Revenue Bonds, 0.350%, 12/1/2029, Call 6/1/2016 (4)(6)(7)	4,845,000	4,845,000
Mobile Industrial Development Board, Pollution, Revenue Bonds, 1.000%, 8/16/2011 (4)	15,000,000	15,000,000
		26,094,000
Arizona — 3.6%
Arizona Health Facilities Authority, Medical, Revenue Bonds, 0.400%, 2/1/2042, Call 2/1/2013 (4)	8,000,000	8,000,000
Greater Arizona Development Authority, Facilities, Revenue Bonds, 0.380%, 8/1/2015 (4)	2,675,000	2,675,000
Puttable Floating Option Tax-Exempt Receipts, Medical, Revenue Bonds, 0.550%, 2/1/2042, Call 2/1/2013 (4)	21,705,000	21,705,000
		32,380,000
Arkansas — 0.9%
Benton County Public Facilities Board, Higher Education, Revenue Bonds, 0.300%, 6/1/2026, Call 9/1/2010 (4)	7,740,000	7,740,000
California — 7.8%
Abag Finance Authority for Nonprofit Corps., General, Revenue Bonds, 0.450%, 10/1/2029, Call 9/1/2010 (4)	10,430,000	10,430,000
California Infrastructure & Economic Development Bank, General, Revenue Bonds, 1.000%, 9/1/2037, Call 9/1/2010 (4)	5,900,000	5,900,000
California Municipal Finance Authority, Education, Revenue Bonds, 1.980%, 8/1/2037, Call 9/1/2010 (4)	8,130,000	8,130,000
City of Concord, Multi-Family Housing, Revenue Bonds, 0.360%, 7/15/2018 (4)	3,600,000	3,600,000
Elsinore Valley Municipal Water District, General, Certificate of Participation, 2.900%, 7/1/2035, Call 9/8/2010 (4)	7,745,000	7,745,000
Fontana Unified School District, School District, GO UT, 0.400%, 2/1/2016 (4)	3,765,000	3,765,000
JP Morgan Chase Putters/Drivers Trust, School District, GO UT, 0.450%, 8/1/2012 (4)(6)(7)	2,565,000	2,565,000

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

87

August 31, 2010

Schedule of Investments

Tax-Free Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
California (continued)
Sacramento County Housing Authority, Multi-Family Housing, Revenue Bonds, 0.400%, 5/15/2031 (4)	$  7,500,000	$    7,500,000
State of California, General Obligation, GO UT, 0.370%, 3/1/2035, Call 3/1/2016 (4)	12,250,000	12,250,000
State of California, General Obligation, GO UT, 0.400%, 2/1/2015 (4)	4,995,000	4,995,000
Sweetwater Union High School District, School District, GO UT, 0.400%, 8/1/2013 (4)	3,620,000	3,620,000
		70,500,000
Colorado — 5.4%
Colorado Health Facilities Authority, Nursing Homes, Revenue Bonds, 0.480%, 8/1/2034, Call 9/1/2010 (4)	4,655,000	4,655,000
Colorado Health Facilities Authority, Nursing Homes, Revenue Bonds, 0.480%, 8/1/2034, Call 9/1/2010 (4)	3,735,000	3,735,000
County of Pueblo, Medical, Revenue Bonds, 0.500%, 11/1/2028, Call 11/1/2010 (4)	1,500,000	1,500,000
JP Morgan Chase Putters/Drivers Trust, Single Family Housing, Revenue Bonds, 0.400%, 11/1/2016 (4)(6)(7)	3,250,000	3,250,000
Puttable Floating Option Tax-Exempt Receipts, General, Revenue Bonds, 0.500%, 12/1/2028 (4)	15,500,000	15,500,000
Southern Ute Tribe of Southern Ute Indian Reservation, General, Revenue Bonds, 0.300%, 11/1/2031, Call 9/1/2010 (4)	5,000,000	5,000,000
Southern Ute Tribe of Southern Ute Indian Reservation, General, Revenue Bonds, 0.350%, 4/1/2040, Call 9/1/2010 (4)(6)(7)	15,300,000	15,300,000
		48,940,000
Connecticut — 0.4%
Connecticut State Health & Educational Facility Authority, Medical, Revenue Bonds, Assured Guaranty Corp., 0.400%, 1/1/2016 (4)	3,575,000	3,575,000
District of Columbia — 0.7%
District of Columbia, Education, Revenue Bonds, 0.440%, 10/1/2023, Call 9/1/2010 (4)	4,115,000	4,115,000
District of Columbia, General, Revenue Bonds, 0.440%, 3/1/2026, Call 9/1/2010 (4)	2,060,000	2,060,000
		6,175,000
Florida — 6.0%
Brevard County Health Facilities Authority, Medical, Revenue Bonds, 0.630%, 1/1/2034, Call 9/1/2010 (4)	5,900,000	5,900,000
Broward County School Board, General, Certificate of Participation, 0.400%, 1/1/2016 (4)	4,995,000	4,995,000
Citizens Property Insurance Corp., General, Revenue Notes, 2.000%, 4/21/2011	12,500,000	12,556,474
City of Gulf Breeze, General, Revenue Bonds, 5.000%, 12/1/2010, Call 10/4/2010 (4)	3,050,000	3,050,000
County of Brevard, Education, Revenue Bonds, 0.440%, 10/1/2019, Call 9/1/2010 (4)	2,530,000	2,530,000
JP Morgan Chase Putters/Drivers Trust, Water, Revenue Bonds, 0.400%, 11/1/2015 (4)(6)(7)	3,700,000	3,700,000
JP Morgan Chase Putters/Drivers Trust, Water, Revenue Bonds, 0.400%, 4/1/2018 (4)(6)(7)	3,000,000	3,000,000
Orange County Health Facilities Authority, Medical, Revenue Bonds, 0.430%, 11/15/2036, Call 9/1/2010 (4)	1,610,000	1,610,000
Orange County Industrial Development Authority, Education, Revenue Bonds, 0.440%, 10/1/2023, Call 9/1/2010 (4)	3,165,000	3,165,000
Orlando-Orange County Expressway Authority, Transportation, Revenue Bonds, 0.410%, 7/1/2040, Call 9/1/2010 (4)	10,000,000	10,000,000
Palm Beach County School Board, General, Certificate of Participation, 0.350%, 8/1/2026, Call 8/1/2016 (4)	3,715,000	3,715,000
		54,221,474
Georgia — 4.9%
Appling County Development Authority, Pollution, Revenue Bonds, 0.450%, 9/1/2029, Call 9/1/2010 (4)	5,000,000	5,000,000
Bartow County Development Authority, Pollution, Revenue Bonds, 0.700%, 12/1/2032, Call 9/1/2010 (4)	5,000,000	5,000,000
Burke County Development Authority, Pollution, Revenue Bonds, 0.700%, 7/1/2049, Call 9/1/2010 (4)	15,000,000	15,000,000
Columbia County Development Authority, Education, Revenue Bonds, 0.390%, 8/1/2018, Call 9/1/2010 (4)	2,300,000	2,300,000
Monroe County Development Authority, Pollution, Revenue Bonds, 0.700%, 7/1/2049, Call 9/1/2010 (4)	10,000,000	10,000,000
Rome-Floyd County Development Authority, Facilities, Revenue Bonds, 0.400%, 11/1/2011 (4)	3,500,000	3,500,000
Savannah Economic Development Authority, Pollution, Revenue Bonds, 0.480%, 1/1/2016, Call 9/1/2010 (4)	4,085,000	4,085,000
		44,885,000
Hawaii — 0.2%
Hawaii State Department of Budget & Finance, Medical, Revenue Bonds, 0.370%, 5/1/2019, Call 9/1/2010 (4)	2,000,000	2,000,000
Illinois — 7.6%
Illinois Finance Authority, Medical, Revenue Bonds, 0.300%, 12/1/2037, Call 9/1/2010 (4)	6,400,000	6,400,000
Illinois Finance Authority, Medical, Revenue Bonds, 0.370%, 7/1/2029, Call 7/1/2012 (4)	5,850,000	5,850,000
Illinois Finance Authority, Medical, Revenue Bonds, 0.400%, 5/1/2038, Call 9/1/2010 (4)	7,240,000	7,240,000
JP Morgan Chase Putters/Drivers Trust, Transportation, Revenue Bonds, 0.400%, 6/1/2018 (4)(6)(7)	6,865,000	6,865,000
Phoenix Realty Special Account-U LP, Multi-Family Housing, Revenue Bonds, 0.450%, 4/1/2020, Call 9/1/2010 (4)	4,075,000	4,075,000

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

88

Marshall Funds

Tax-Free Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
Illinois (continued)
State of Illinois, General Obligation, GO UT, 3.000%, 4/15/2011	$12,000,000	$  12,080,618
Term Tender Custodial Receipts, Medical, Revenue Bonds, 0.650%, 9/17/2010 (4)(6)(10)	20,050,000	20,051,338
Upper Illinois River Valley Development Authority, Development, Revenue Bonds, 0.460%, 8/1/2033, Call 9/1/2010 (4)	6,335,000	6,335,000
		68,896,956
Indiana — 0.7%
City of South Bend, Development, Revenue Bonds, 0.320%, 4/1/2033, Call 9/2/2010 (4)	6,800,000	6,800,000
Iowa — 4.4%
Iowa Finance Authority, Development, Revenue Bonds, 0.370%, 6/1/2036, Call 9/1/2010 (4)	21,000,000	21,000,000
Iowa Finance Authority, Development, Revenue Bonds, 0.370%, 9/1/2036, Call 9/1/2010 (4)	19,000,000	19,000,000
		40,000,000
Kansas — 1.6%
City of Burlington, Pollution, Revenue Bonds, 0.500%, 11/18/2010	3,400,000	3,400,000
City of Burlington, Pollution, Revenue Bonds, 0.500%, 11/18/2010	6,995,000	6,995,000
City of Burlington, Pollution, Revenue Bonds, 0.550%, 11/18/2010	3,900,000	3,900,000
City of Burlington, Pollution, Revenue Bonds, 0.550%, 11/18/2010	500,000	500,000
		14,795,000
Kentucky — 1.1%
County of Simpson, Medical, Revenue Bonds, 0.350%, 6/1/2036, Call 9/1/2010 (4)	4,105,000	4,105,000
Hancock County, 0.400%, 7/1/2011 (4)	1,000,000	1,000,000
Hancock County, 0.400%, 7/1/2012 (4)	1,685,000	1,685,000
Hardin County Water District No. 1, Water, Revenue Bonds, 0.440%, 9/1/2022, Call 9/2/2010 (4)	3,540,000	3,540,000
		10,330,000
Louisiana — 3.1%
Lafayette Parish Industrial Development Board, Development, Revenue Bonds, 0.600%, 12/15/2014, Call 9/1/2010 (4)	1,510,000	1,510,000
Louisiana Public Facilities Authority, Medical, Revenue Bonds, 0.400%, 1/1/2022 (4)	1,665,000	1,665,000
Parish of St. James, Development, Revenue Bonds, 0.350%, 11/1/2039, Call 9/1/2010 (4)	25,000,000	25,000,000
		28,175,000
Maryland — 1.3%
County of Washington, Nursing Homes, Revenue Bonds, 0.350%, 11/1/2032, Call 9/1/2010 (4)	11,570,000	11,570,000
Massachusetts — 1.0%
BB&T Municipal Trust, General, 0.440%, 10/1/2028 (4)(6)(7)	8,700,000	8,700,000
Michigan — 2.5%
Charter Township of Holland, General, Revenue Bonds, 0.440%, 10/1/2028, Call 9/1/2010 (4)	3,865,000	3,865,000
Michigan Higher Education Facilities Authority, Higher Education, Revenue Bonds, 0.340%, 3/1/2031, Call 9/1/2010 (4)	13,100,000	13,100,000
Michigan Strategic Fund, Nursing Homes, Revenue Bonds, 0.390%, 2/1/2032, Call 9/1/2010 (4)	5,565,000	5,565,000
		22,530,000
Minnesota — 2.2%
City of Bloomington, Development, Revenue Bonds, 0.310%, 12/1/2015 (4)	3,310,000	3,310,000
City of Bloomington, Development, Revenue Bonds, 0.310%, 12/1/2015, Call 9/1/2010 (4)	3,405,000	3,405,000
City of Owatonna, Nursing Homes, Revenue Bonds, 0.340%, 1/1/2030, Call 9/1/2010 (4)	3,290,000	3,290,000
City of Ramsey, Development, Revenue Bonds, 0.350%, 12/1/2023, Call 9/1/2010 (4)	3,315,000	3,315,000
SCA Tax Exempt Trust, Multi-Family Housing, Revenue Bonds, 0.550%, 1/1/2030 (4)	6,810,000	6,810,000
		20,130,000
Montana — 0.4%
Montana Board of Investments, General, Revenue Bonds, 0.310%, 9/1/2010 (4)	3,925,000	3,925,000
Nebraska — 1.0%
Central Plains Energy Project, Power, Revenue Bonds, 0.350%, 12/1/2021 (4)	8,475,000	8,475,000
Nebraska Investment Finance Authority, Multi-Family Housing, Revenue Bonds, 0.420%, 9/1/2031, Call 9/1/2010 (4)	600,000	600,000
		9,075,000
New Hampshire — 1.3%
New Hampshire Health & Education Facilities Authority, Medical, Revenue Bonds, 0.400%, 8/1/2011 (4)	8,690,000	8,690,000

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

89

August 31, 2010

Schedule of Investments

Tax-Free Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
New Hampshire (continued)
New Hampshire Health & Education Facilities Authority, Nursing Homes, Revenue Bonds, 0.470%, 5/1/2036, Call 9/1/2010 (4)	$  3,500,000	$    3,500,000
		12,190,000
New Jersey — 4.8%
JP Morgan Chase Putters/Drivers Trust, Transportation, Revenue Bonds, 0.400%, 12/15/2013 (4)(6)(7)	2,775,000	2,775,000
New Jersey Economic Development Authority, Nursing Homes, Revenue Bonds, 0.450%, 11/1/2040, Call 9/1/2010 (4)	9,575,000	9,575,000
New Jersey Economic Development Authority, Nursing Homes, Revenue Bonds, 0.450%, 11/1/2040, Call 9/1/2010 (4)	6,455,000	6,455,000
New Jersey Economic Development Authority, Transportation, Revenue Bonds, 0.350%, 12/1/2027, Call 9/1/2010 (4)	10,000,000	10,000,000
New Jersey Economic Development Authority, Transportation, Revenue Bonds, 0.350%, 12/1/2027, Call 9/1/2010 (4)	10,000,000	10,000,000
New Jersey Health Care Facilities Financing Authority, Medical, Revenue Bonds, 0.450%, 7/1/2038, Call 9/1/2010 (4)	4,805,000	4,805,000
		43,610,000
New York — 3.4%
Jefferson Central School District, School District, GO UT, 2.000%, 6/23/2011	8,485,000	8,552,726
New York City Industrial Development Agency, General, Revenue Bonds, 0.350%, 3/1/2030, Call 9/1/2010 (4)	4,500,000	4,500,000
New York State Thruway Authority, Transportation, Revenue Bonds, 0.330%, 1/1/2014 (4)	2,995,000	2,995,000
Onondaga County Industrial Development Agency, Development, Revenue Bonds, 0.350%, 12/1/2021, Call 9/2/2010 (4)	4,420,000	4,420,000
Suffolk County Industrial Development Agency, Development, Revenue Bonds, 0.480%, 4/1/2018, Call 9/1/2010 (4)	3,785,000	3,785,000
Utica Industrial Development Agency, Higher Education, Revenue Bonds, 0.420%, 7/15/2029, Call 9/1/2010 (4)	6,510,000	6,510,000
		30,762,726
North Carolina — 1.3%
BB&T Municipal Trust, General, Revenue Bonds, 0.360%, 6/1/2025 (4)(6)(7)	10,000,000	10,000,000
North Carolina Medical Care Commission, Nursing Homes, Revenue Bonds, 0.390%, 2/1/2022, Call 9/1/2010 (4)	2,200,000	2,200,000
		12,200,000
Ohio — 6.0%
Butler County Port Authority, General, Revenue Bonds, 0.270%, 9/1/2037, Call 9/1/2010 (4)	100,000	100,000
City of Brunswick, General Obligation, GO, 1.650%, 11/17/2010	3,000,000	3,003,122
County of Erie, General Obligation, Revenue Bonds, 0.370%, 8/15/2046, Call 10/1/2010 (4)	5,975,000	5,975,000
County of Lawrence, Development, Revenue Bonds, 0.400%, 11/1/2011 (4)	3,500,000	3,500,000
County of Warren, 0.470%, 9/1/2015 (4)	5,190,000	5,190,000
Ohio State Higher Educational Facility Commission, Medical, Revenue Bonds, 0.370%, 1/15/2046, Call 1/15/2017 (4)	11,250,000	11,250,000
Puttable Floating Option Tax-Exempt Receipts, General, Revenue Bonds, 0.400%, 4/1/2026 (4)	8,300,000	8,300,000
Puttable Floating Option Tax-Exempt Receipts, Higher Education, Revenue Bonds, 0.550%, 6/1/2037 (4)	17,265,000	17,265,000
		54,583,122
Oklahoma — 0.4%
Oklahoma Industries Authority, Education, Revenue Bonds, 0.600%, 8/1/2018, Call 9/1/2010 (4)	1,190,000	1,190,000
Tulsa Industrial Authority, General, Revenue Bonds, 0.490%, 11/1/2026, Call 9/1/2010 (4)	2,825,000	2,825,000
		4,015,000
Oregon — 0.9%
Oregon State Housing & Community Services Department, Housing, Revenue Bonds, 0.390%, 2/1/2042, Call 9/1/2010 (4)	7,945,000	7,945,000
Pennsylvania — 3.8%
BB&T Municipal Trust, General, 0.320%, 12/1/2014, Call 9/1/2010 (4)	7,910,000	7,910,000
JP Morgan Chase Putters/Drivers Trust, General Obligation, Revenue Bonds, 0.400%, 6/1/2015 (4)(6)(7)	4,800,000	4,800,000
Philadelphia School District, School District, GO UT, 2.500%, 6/30/2011	15,000,000	15,153,448
Reading School District, School District, GO UT, 0.400%, 1/15/2014 (4)	6,260,000	6,260,000
		34,123,448

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

90

Marshall Funds

Tax-Free Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
Puerto Rico — 1.5%
Puerto Rico Industrial Medical & Environmental Pollution Control Facilities Financing Authority, Development, Revenue Bonds, 1.000%, 3/1/2011 (4)	$  7,605,000	$    7,605,000
Puerto Rico Industrial Medical & Environmental Pollution Control Facilities Financing Authority, Pollution, Revenue Bonds, 0.950%, 3/1/2011 (4)	5,770,000	5,770,000
		13,375,000
Rhode Island — 2.5%
Rhode Island Health & Educational Building Corp., Higher Education, Revenue Bonds, 0.550%, 3/1/2034, Call 9/1/2010 (4)	11,610,000	11,610,000
Rhode Island Health & Educational Building Corp., Higher Education, Revenue Bonds, 0.550%, 11/1/2036, Call 9/1/2010 (4)	11,505,000	11,505,000
		23,115,000
South Carolina — 1.0%
County of York, Pollution, Revenue Bonds, 0.000%, 9/15/2024 (4)(5)	5,000,000	5,000,000
County of York, Pollution, Revenue Bonds, 0.000%, 9/15/2024 (4)(5)	2,000,000	2,000,000
South Carolina Transportation Infrastructure Bank, Transportation, Revenue Bonds, 0.380%, 4/1/2012 (4)	2,095,000	2,095,000
		9,095,000
South Dakota — 2.0%
South Carolina Jobs-Economic Development Authority, Education, Revenue Bonds, 0.390%, 6/1/2030, Call 9/1/2010 (4)	3,860,000	3,860,000
South Dakota Housing Development Authority, Housing, Revenue Bonds, 0.380%, 11/1/2048, Call 9/1/2010 (4)	6,650,000	6,650,000
South Dakota Housing Development Authority, Multi-Family Housing, Revenue Bonds, 0.380%, 5/1/2048, Call 9/1/2010 (4)	7,320,000	7,320,000
		17,830,000
Tennessee — 0.4%
SCA Tax Exempt Trust, Multi-Family Housing, Revenue Bonds, 0.550%, 1/1/2030, Call 9/13/2010 (4)	3,480,000	3,480,000
Texas — 1.9%
Atascosa County Industrial Development Corp., Power, Revenue Bonds, 0.600%, 6/30/2020, Call 9/1/2010 (4)	11,000,000	11,000,000
Bowie County Industrial Development Corp., Development, Revenue Bonds, 0.290%, 11/1/2025, Call 9/1/2010 (4)	3,500,000	3,500,000
Dallam County Industrial Development Corp., Pollution, Revenue Bonds, 0.750%, 5/1/2039, Call 9/1/2010 (4)	2,800,000	2,800,000
		17,300,000
Utah — 0.6%
Utah Associated Municipal Power Systems, Power, Revenue Bonds, 0.400%, 4/1/2012 (4)	5,360,000	5,360,000
Virginia — 0.8%
Caroline County Industrial Development Authority, Utilities, Revenue Bonds, 0.320%, 12/1/2037, Call 9/2/2010 (4)	6,120,000	6,120,000
Suffolk Redevelopment & Housing Authority, Multi-Family Housing, Revenue Bonds, 0.440%, 9/1/2019, Call 9/1/2010 (4)	1,305,000	1,305,000
Virginia Commonwealth University, Medical, Revenue Bonds, 0.250%, 7/1/2030, Call 9/1/2010 (4)	50,000	50,000
		7,475,000
Washington — 0.5%
Washington State Housing Finance Commission, Education, Revenue Bonds, 0.390%, 7/1/2028, Call 9/1/2010 (4)	4,335,000	4,335,000
Wisconsin — 5.9%
D C Everest Area School District, School District, Revenue Notes, 2.000%, 9/24/2010	3,500,000	3,500,540
Edgerton School District, School District, Revenue Notes, 1.250%, 10/21/2010	3,820,000	3,820,155
Green Bay Housing Authority, Nursing Homes, Revenue Bonds, 2.000%, 1/1/2035, Call 9/2/2010 (4)	3,750,000	3,750,000
Hartford Union High School District, School District, Revenue Notes, 1.280%, 10/29/2010	2,600,000	2,600,243
Pulaski Community School District, Education, Revenue Notes, 1.500%, 9/14/2010	4,100,000	4,100,142
Rice Lake Area School District, Education, Revenue Notes, 1.500%, 11/1/2010	2,995,000	2,996,033
Sun Prairie Area School District, School District, Revenue Notes, 1.250%, 10/18/2010	6,800,000	6,800,255
Waukesha Housing Authority, Multi-Family Housing, Revenue Bonds, 0.440%, 2/1/2026, Call 9/1/2010 (4)	5,390,000	5,390,000
Wisconsin Health & Educational Facilities Authority, Medical, Revenue Bonds, 0.370%, 8/15/2034, Call 8/15/2016 (4)	2,200,000	2,200,000

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

91

August 31, 2010

Schedule of Investments

Tax-Free Money Market Fund (continued)

Description	Shares or Principal Amount		Value
Municipals (continued)
Wisconsin (continued)
Wisconsin Health & Educational Facilities Authority, Nursing Homes, Revenue Bonds, 0.600%, 5/1/2026, Call 9/1/2010 (4)		$   120,000		$       120,000
Wisconsin Housing & Economic Development Authority, Multi-Family Housing, Revenue Bonds, 0.450%, 5/1/2037, Call 9/1/2010 (4)		4,785,000		4,785,000
Wisconsin Municipalities Private School Finance Commission, Medical, Revenue Bonds, 0.400%, 10/1/2045, Call 9/1/2010 (4)		3,035,000		3,035,000
Wisconsin Rapids School District, School District, Revenue Notes, 1.500%, 9/21/2010		8,000,000		8,000,994
Wrightstown Community School District, Education, Revenue Notes, 1.500%, 9/30/2010		2,300,000		2,300,305
				53,398,667
Total Municipals				895,630,393
Mutual Funds — 0.1%
Federated Tax-Free Obligations Fund, Class I, 0.134%		481,359		481,359
Total Mutual Funds				481,359
Total Investments — 98.8% (at amortized cost)				896,111,752
Other Assets and Liabilities — 1.2%				11,023,491
Total Net Assets — 100.0%				$907,135,243

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

92

Marshall Funds

Prime Money Market Fund

Description	Principal Amount		Value
Certificates of Deposit — 12.0%
Banks — 10.6%
Calyon New York, 0.658%, 9/1/2010 (4)		$  75,000,000		$     75,000,000
Dexia Credit Local NY, 1.625%, 4/18/2011 (4)		150,000,000		150,000,000
Standard Chartered Bank New York, 0.868%, 8/12/2011 (4)		50,000,000		50,000,000
State Street Bank and Trust Co., 0.728%, 3/2/2011 (4)		100,000,000		100,000,000
Foreign Banks — 1.4%
Barclays Bank PLC, 0.525%, 7/19/2011 (4)		50,000,000		50,000,000
Total Certificates of Deposit				425,000,000
Commercial Paper — 43.3%
Asset-Backed Securities — 11.8%
Clipper Receivables Co., LLC, 0.530%, 9/2/2010 (6)(7)(11)		70,000,000		69,998,969
Concord Minutemen Capital Co., LLC, 0.550%, 11/15/2010 (6)(7)(11)		100,000,000		99,885,417
GovCo LLC, 0.530%, 9/16/2010 (6)(7)(11)		70,000,000		69,984,542
GovCo LLC, 0.600%, 10/25/2010 (6)(7)(11)		50,000,000		49,955,000
GovCo LLC, 0.620%, 1/24/2011 (6)(7)(11)		30,000,000		29,925,083
Lexington Parker Capital Co., LLC, 0.600%, 10/4/2010 (6)(7)(11)		50,000,000		49,972,500
Lexington Parker Capital Co., LLC, 0.600%, 10/20/2010 (6)(7)(11)		50,000,000		49,959,167
				419,680,678
Automobiles — 9.8%
Ford Credit Auto Receivables Trust, 0.540%, 9/15/2010 (11)		75,000,000		74,984,250
Ford Credit Auto Receivables Trust, 0.570%, 11/1/2010 (11)		75,000,000		74,927,562
Paccar Financial Corp., 0.320%, 11/15/2010 (11)		47,200,000		47,168,533
Paccar Financial Corp., 0.320%, 11/17/2010 (11)		50,000,000		49,965,778
Toyota Motor Credit Corp., 0.480%, 10/7/2010 (11)		100,000,000		99,952,000
				346,998,123
Consumer Electronics — 4.2%
Panasonic Finance, Inc., 0.450%, 10/8/2010 (6)(7)(11)		100,000,000		99,953,750
Panasonic Finance, Inc., 0.480%, 10/18/2010 (6)(7)(11)		50,000,000		49,968,667
				149,922,417

Description	Principal Amount		Value
Commercial Paper (continued)
Foreign Banks — 11.2%
ABN AMRO Funding USA LLC, 0.500%, 11/1/2010 (6)(7)(11)		$  75,000,000		$     74,936,458
ANZ National Ltd., 0.598%, 7/25/2011 (4)(6)(7)		75,000,000		75,000,000
Skandinaviska Enskilda Banken AB, 0.500%, 10/28/2010 (6)(7)(11)		50,000,000		49,960,417
Skandinaviska Enskilda Banken AB, 0.550%, 10/22/2010 (6)(7)(11)		100,000,000		99,922,083
Societe Generale North America, Inc., 0.230%, 9/1/2010 (11)		100,000,000		100,000,000
				399,818,958
Insurance — 6.3%
Prudential Funding LLC, 0.350%, 11/24/2010 (11)		100,000,000		99,918,334
Prudential Funding LLC, 0.560%, 9/20/2010 (11)		25,000,000		24,992,611
Prudential Funding LLC, 0.560%, 9/21/2010 (11)		25,000,000		24,992,222
Prudential PLC, 0.420%, 11/22/2010 (6) (7) (11)		75,000,000		74,928,250
				224,831,417
Total Commercial Paper				1,541,251,593
Corporate Bonds & Notes — 1.3%
Banks — 1.3%
Citigroup, Inc., 6.500%, 1/18/2011		43,595,000		44,546,319
Total Corporate Bonds & Notes				44,546,319
Funding Agreements — 3.2%
Insurance — 3.2%
Metropolitan Life Insurance Co., 0.544%, 3/1/2011 (4)(6)(10)		65,000,000		65,000,000
Metropolitan Life Insurance Co., 0.666%, 2/1/2011 (4)(6)(10)		50,000,000		50,000,000
Total Funding Agreements				115,000,000
Municipals — 7.8%
Connecticut — 2.4%
Connecticut Housing Finance Authority, Housing, Revenue Bonds, 0.320%, 11/15/2038, Call Date 9/2/2010 (4)		56,610,000		56,610,000
Connecticut Housing Finance Authority, Multi-Family Housing, Revenue Bonds, GO, 0.340%, 5/15/2031, Call Date 9/1/2010 (4)(9)		27,330,000		27,330,000
				83,940,000
Iowa — 0.7%
Iowa Finance Authority, Single Family Housing, Revenue Bonds, GNMA/FNMA/FHLMC, 0.320%, 1/1/2039, Call Date 9/1/2010 (4)(9)		24,825,000		24,825,000

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

93

August 31, 2010

Schedule of Investments

Prime Money Market Fund (continued)

Description	Principal Amount	Value
Municipals (continued)
New York — 4.2%
New York City Housing Development Corp., Multi-Family Housing, Revenue Bonds, FNMA, 0.290%, 5/15/2034, Call Date 9/15/2010 (4)(9)	$  44,500,000	$     44,500,000
New York City Housing Development Corp., Multi-Family Housing, Revenue Bonds, FNMA, 0.290%, 6/15/2034, Call Date 9/1/2010 (4)(9)	49,000,000	49,000,000
New York State Housing Finance Agency, Multi-Family Housing, Revenue Bonds, FNMA, 0.290%, 11/15/2038, Call Date 9/1/2010 (4)(9)	56,100,000	56,100,000
		149,600,000
Wisconsin — 0.5%
Wisconsin Housing & Economic Development Authority, Single Family Housing, Revenue Bonds, 0.390%, 3/1/2036, Call Date 9/1/2010 (4)	19,290,000	19,290,000
Total Municipals		277,655,000
Notes-Variable — 6.9%
Diversified Financial Services — 1.3%
General Electric Capital Corp., 0.916%, 2/1/2011 (4)	46,514,000	46,582,422
Foreign Banks — 5.6%
Rabobank Nederland NV, 0.446%, 9/16/2011 (4)(6)(7)	50,000,000	50,000,000
Svenska Handelsbanken AB, 0.584%, 7/1/2011 (4)(6)(7)	150,000,000	150,000,000
		200,000,000
Total Notes-Variable		246,582,422
Repurchase Agreements — 21.5%
Agreement with Deutsche Bank Alex Brown, Inc., 0.240%, dated 8/31/2010, to be repurchased at $275,001,833 on 9/1/2010, collateralized by U.S. Government Agency Obligations with various maturities to 10/29/2013, with a market value of $280,500,888	275,000,000	275,000,000

Description	Principal Amount	Value
Repurchase Agreements (continued)
Agreement with Deutsche Bank Alex Brown, Inc., 0.330%, dated 8/31/2010, to be repurchased at $75,000,688 on 9/1/2010, collateralized by Corporate Bonds with various maturities to 1/25/2047, with a market value of $78,000,001	$  75,000,000	$     75,000,000
Agreement with Fixed Income Clearing Corp., 0.100%, dated 8/31/2010, to be repurchased at $64,989,120 on 9/1/2010, collateralized by a U.S. Government Agency Obligation with a maturity of 4/15/2013, with a market value of $66,291,750	64,988,939	64,988,939
Agreement with Morgan Stanley & Co., Inc., 0.230%, dated 8/31/2010, to be repurchased at $199,001,271 on 9/1/2010, collateralized by U.S. Government Agency Obligations with various maturities to 12/10/2014, with a market value of $202,980,351	199,000,000	199,000,000
Agreement with Morgan Stanley & Co., Inc., 0.330%, dated 8/31/2010, to be repurchased at $150,001,375 on 9/1/2010, collateralized by Commercial Paper with various maturities to 11/18/2010, with a market value of $157,500,001	150,000,000	150,000,000
Total Repurchase Agreements		763,988,939
Trust Demand Notes — 4.0%
Broker/Dealers — 4.0%
JP Morgan Securities, Inc., 0.480%, 9/1/2010 (4)	143,000,000	143,000,000
Total Trust Demand Notes		143,000,000
Total Investments — 100.0% (at amortized cost)		3,557,024,273
Other Assets and Liabilities — 0.0%		862,318
Total Net Assets — 100.0%		$3,557,886,591

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

94

Notes to Schedules of Investments

The categories of investments are shown as a percentage of total net assets for each Fund as of August 31, 2010.

(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 August 31, 2010.

(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 August 31, 2010, these securities amounted to:

Fund	Amount		% of Total Net Assets
Emerging Markets Equity Fund	$	1,511,487		2.50	%
Ultra Short-Tax Free Fund		500,000		0.16
Short-Term Income Fund		17,897,695		13.87
Short-Intermediate Bond Fund		29,476,082		16.38
Government Income Fund		20,731,945		5.27
Corporate Income Fund		5,499,818		7.89
Aggregate Bond Fund		43,500,189		13.80
Core Plus Bond Fund		5,203,028		6.88
Government Money Market Fund		24,988,375		3.74
Tax-Free Money Market Fund		85,851,338		9.46
Prime Money Market Fund		1,259,350,303		35.40

(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 of the Intermediate Tax-Free Fund, Government Money Market Fund and Prime Money Market Fund portfolios’ represent 8.11%, 17.38% and 5.67%, respectively, 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.

(13) Please refer to Note 5, Investments in Affiliated Entities, in the Notes to Financial Statements.

The following acronyms are used throughout this report:

ACA—American Capital Access Corporation ADED—Arkansas Department of Economic Development ADR—American Depositary Receipt AGC—Assured Guaranty Corporation AGM—Federal Agricultural Mortgage Corporation AMBAC—AmericanMunicipal 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 COLL—Collateralized FGIC—Financial Guaranty Insurance Corporation FHA—Federal Housing Administration FHLB—Federal Home Loan Bank FHLMC—FederalHome Loan Mortgage Corporation FNMA—Federal National Mortgage Association FRN—Floating Rate Note FSA—Financial Security Assurance Corporation GDR—Global Depositary Receipt GNMA  —GovernmentNational 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 LLC —Limited Liability Corporation LOC —Letter of Credit LP —Limited Partnership LT —Limited Tax MBIA —Municipal Bond Insurance Association MHF —Maryland Housing Fund MTN —Medium Term Note NATL-RE—NationalRural Utilities Cooperative Finance Corporation Reinsurance NR —Not Rated PCA —Pollution Control Authority PLC —Public Limited Company PSF —Permanent School Fund Guaranteed PUFG —Permanent University Fund Guarantee RADIAN —RadianAsset 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 WR —Withdrawn Rating XLCA —XL Capital Assurance

95

August 31, 2010

Statements of Assets and Liabilities Marshall Funds

	Large-Cap Value Fund			Large-Cap Growth Fund			Mid-Cap Value Fund			Mid-Cap Growth Fund
Assets:
Investments in securities, at value	$	190,483,657	(1)	$	183,195,040	(1)	$	285,703,967	(1)	$	298,060,306	(1)
Investments in repurchase agreements		3,638,466			9,416,544			9,648,190			5,985,088
Dividends and interest receivable		442,275			138,102			299,253			91,515
Receivable for investments sold		1,172,819			3,723,402			3,281,916			775,578
Receivable for capital stock sold		910,467			35,068			84,268			33,627
Prepaid expenses		24,618			16,629			25,352			25,149
Total assets		196,672,302			196,524,785			299,042,946			304,971,263
Liabilities:
Payable for capital stock redeemed		76,693			40,587			1,270,620			1,670,341
Payable for investments purchased		650,130			4,259,802			5,271,813			1,710,668
Payable for return of securities lending collateral		27,884,233			35,215,359			65,478,423			97,837,904
Call options written, at value (premium received $509,441)		82,175			—			—			—
Payable to affiliates (Note 5)		134,250			122,246			194,145			159,687
Other liabilities		66,825			70,467			84,987			65,079
Total liabilities		28,894,306			39,708,461			72,299,988			101,443,679
Total net assets	$	167,777,996		$	156,816,324		$	226,742,958		$	203,527,584
Net Assets Consist of:
Paid-in-capital	$	203,054,147		$	184,939,282		$	240,693,153		$	218,089,654
Net unrealized appreciation (depreciation) on investments and options		8,791,134			(989,299	)		10,271,280			24,604,560
Accumulated net realized loss on investments and options		(44,358,091	)		(27,271,487	)		(25,026,976	)		(39,166,630	)
Undistributed net investment income		290,806			137,828			805,501			—
Total net assets	$	167,777,996		$	156,816,324		$	226,742,958		$	203,527,584
Net Asset Value, Offering Price and Redemption Proceeds Per Share (Unlimited shares authorized, $0.0001 par value)
Investor Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	9.27		$	9.90		$	10.30		$	14.42
Advisor Class of Shares:
Net asset value and redemption proceeds per share	$	9.27		$	9.90		$	10.30		$	14.42
Offering price per share	$	9.84	(2)	$	10.50	(2)	$	10.93	(2)	$	15.30	(2)
Institutional Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	9.28		$	9.94		$	10.29		$	14.50
Net Assets:
Investor class of shares	$	73,578,625		$	60,124,748		$	121,287,531		$	63,583,385
Advisor class of shares		5,929,775			5,258,029			6,126,298			3,552,229
Institutional class of shares		88,269,596			91,433,547			99,329,129			136,391,970
Total net assets	$	167,777,996		$	156,816,324		$	226,742,958		$	203,527,584
Shares Outstanding:
Investor class of shares		7,938,092			6,072,641			11,778,611			4,410,670
Advisor class of shares		639,740			531,066			594,947			246,419
Institutional class of shares		9,512,976			9,197,630			9,649,198			9,407,979
Total shares outstanding		18,090,808			15,801,337			22,022,756			14,065,068
Investments, at identified cost	$	185,758,255		$	193,600,883		$	285,080,877		$	279,440,834

(1) Including $27,127,852, $34,260,118, $63,702,275 and $95,183,984, respectively, of securities loaned.

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

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

96

August 31, 2010

Statements of Assets and Liabilities Marshall Funds

	Small-Cap Growth Fund			International Stock Fund			Emerging Markets Equity Fund
Assets:
Investments in securities, at value	$	496,618,878	(1)	$	62,821,763	(1)	$	59,238,630
Investments in repurchase agreements		3,090,236			1,606,805			1,148,904
Cash denominated in foreign currencies		—			619,178	(2)		501,754	(2)
Dividends and interest receivable		6,988			471,289			100,397
Receivable for investments sold		5,349,879			695			248,526
Receivable for capital stock sold		239,310			31,215			28,886
Prepaid expenses		42,565			23,969			13,533
Other receivables		—			614,235			—
Total assets		505,347,856			66,189,149			61,280,630
Liabilities:
Payable for capital stock redeemed		2,504,678			217,381			387,307
Payable for investments purchased		941,017			—			93,175
Payable for return of securities lending collateral		149,923,523			2,232,808			—
Payable for foreign tax expense		—			27,379			11,160
Payable to affiliates (Note 5)		318,649			53,336			43,307
Other liabilities		114,587			67,769			252,446
Total liabilities		153,802,454			2,598,673			787,395
Total net assets	$	351,545,402		$	63,590,476		$	60,493,235
Net Assets Consist of:
Paid-in-capital	$	366,169,941		$	188,211,634		$	43,026,566
Net unrealized appreciation on investments and foreign currency translation		13,323,696			2,849,535			15,420,441
Accumulated net realized gain (loss) on investments and foreign currency transactions		(27,726,671	)		(128,892,851	)		1,853,309
Undistributed net investment income (distributions in excess of net investment income)		(221,564	)		1,422,158			192,919
Total net assets	$	351,545,402		$	63,590,476		$	60,493,235
Net Asset Value, Offering Price and Redemption Proceeds Per Share (Unlimited shares authorized, $0.0001 par value)
Investor Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	14.03		$	8.48		$	16.17
Advisor Class of Shares:
Net asset value and redemption proceeds per share	$	14.03		$	8.48		$	16.17
Offering price per share	$	14.89	(3)	$	9.00	(3)	$	17.16	(3)
Institutional Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	14.12		$	8.60		$	16.21
Net Assets:
Investor class of shares	$	163,225,275		$	27,883,345		$	12,855,917
Advisor class of shares		19,283,709			2,560,154			641,337
Institutional class of shares		169,036,418			33,146,977			46,995,981
Total net assets	$	351,545,402		$	63,590,476		$	60,493,235
Shares Outstanding:
Investor class of shares		11,631,557			3,286,931			794,954
Advisor class of shares		1,374,187			301,796			39,656
Institutional class of shares		11,969,435			3,855,599			2,899,103
Total shares outstanding		24,975,179			7,444,326			3,733,713
Investments, at identified cost	$	486,385,418		$	61,598,109		$	44,967,742

(1) Including $145,856,746 and $2,172,242, respectively, of securities loaned.

(2) Identified cost of cash denominated in foreign currencies are $620,368 and $500,100, 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)

97

August 31, 2010

Statements of Assets and Liabilities Marshall Funds

	Ultra Short Tax-Free Fund (1)			Short-Term Income Fund			Short- Intermediate Bond Fund			Intermediate Tax-Free Fund
Assets:
Investments in securities, at value	$	314,724,305	(2)	$	136,263,698	(3)	$	248,394,850	(3)	$	434,728,167	(2)
Investments in repurchase agreements		—			4,168,193			23,240,746			—
Deposit held at broker		29,929			—			—			61,327
Dividends receivable		3,857			27,175			—			8,753
Interest receivable		2,019,433			795,817			1,023,812			4,282,934
Receivable for investments sold		—			—			—			3,638,213
Receivable for capital stock sold		2,444,764			297,298			1,709,685			2,886,128
Prepaid expenses		13,660			18,006			19,351			31,087
Total assets		319,235,948			141,570,187			274,388,444			445,636,609
Liabilities:
Payable for capital stock redeemed		6,692,348			149			236,327			1,237,978
Payable for investments purchased		5,795,967			1,646,559			15,606,089			20,907,381
Payable for return of securities lending collateral		—			10,676,116			78,363,278			—
Payable for income distribution		340,197			137,135			87,327			493,375
Payable to affiliates (Note 5)		60,237			28,291			77,707			142,699
Other liabilities		38,557			41,706			54,815			50,788
Total liabilities		12,927,306			12,529,956			94,425,543			22,832,221
Total net assets	$	306,308,642		$	129,040,231		$	179,962,901		$	422,804,388
Net Assets Consist of:
Paid-in-capital	$	305,225,218		$	134,699,962		$	215,578,606		$	402,761,383
Net unrealized appreciation (depreciation) on investments		1,162,316			(569,769	)		(1,994,062	)		19,354,967
Accumulated net realized gain (loss) on investments and futures contracts		(78,892	)		(5,197,018	)		(33,791,936	)		684,009
Undistributed net investment income		—			107,056			170,293			4,029
Total net assets	$	306,308,642		$	129,040,231		$	179,962,901		$	422,804,388
Net Asset Value, Offering Price and Redemption Proceeds Per Share (Unlimited shares authorized, $0.0001 par value)
Investor Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	10.07		$	9.30		$	9.90		$	10.87
Advisor Class of Shares:
Net asset value and redemption proceeds per share	$	—		$	9.30		$	9.90		$	—
Offering price per share	$	—		$	9.49	(4)	$	10.29	(5)	$	—
Institutional Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	10.07		$	9.31		$	9.90		$	—
Net Assets:
Investor class of shares	$	33,188,481		$	52,353,304		$	65,383,095		$	422,804,388
Advisor class of shares		—			4,000,787			4,804,114			—
Institutional class of shares		273,120,161			72,686,140			109,775,692			—
Total net assets	$	306,308,642		$	129,040,231		$	179,962,901		$	422,804,388
Shares Outstanding:
Investor class of shares		3,294,280			5,632,356			6,601,292			38,906,799
Advisor class of shares		—			430,174			485,215			—
Institutional class of shares		27,134,620			7,811,507			11,093,525			—
Total shares outstanding		30,428,900			13,874,037			18,180,032			38,906,799
Investments, at identified cost	$	313,561,989	(2)	$	141,001,660		$	273,629,658		$	415,373,200	(2)

(1) Commenced operations on October 1, 2009.

(2) Market value of affiliated money market funds as of August 31, 2010 were $8,142,745 and $28,468,389, respectively. Cost of affiliated money market funds as of August 31, 2010 were $8,142,745 and $28,468,389, respectively.

(3) Including $10,386,520 and $76,237,622, respectively, of securities loaned.

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

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

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

98

August 31, 2010

Statements of Assets and Liabilities Marshall Funds

	Government Income Fund			Corporate Income Fund			Aggregate Bond Fund			Core Plus Bond Fund
Assets:
Investments in securities, at value	$	572,035,841	(1)	$	83,620,634	(1)(2)	$	440,987,327	(1)	$	94,466,577	(1)(2)
Investments in repurchase agreements		61,666,183			—			45,447,341			—
Dividends receivable		—			1,031			—			900
Interest receivable		1,295,564			765,546			1,874,375			724,487
Receivable for investments sold		4,396,176			606,572			5,492,439			909,859
Receivable for capital stock sold		200,937			197,396			515,307			153,414
Prepaid expenses		23,332			13,578			27,418			10,235
Total assets		639,618,033			85,204,757			494,344,207			96,265,472
Liabilities:
Payable for capital stock redeemed		736,993			—			1,412,689			989,369
Payable for investments purchased		67,314,047			1,309,040			31,212,179			1,134,501
Payable for return of securities lending collateral		177,400,820			14,071,118			146,178,911			18,448,345
Payable for income distribution		187,412			28,983			107,259			12,090
Payable to affiliates (Note 5)		202,792			17,683			143,767			19,329
Other liabilities		119,407			32,984			53,850			35,302
Total liabilities		245,961,471			15,459,808			179,108,655			20,638,936
Total net assets	$	393,656,562		$	69,744,949		$	315,235,552		$	75,626,536
Net Assets Consist of:
Paid-in-capital	$	374,917,393		$	63,540,489		$	296,506,691		$	68,119,033
Net unrealized appreciation on investments		11,212,628			4,930,600			9,475,651			6,155,127
Accumulated net realized gain on investments		7,446,886			1,276,133			9,241,641			1,354,650
Undistributed net investment income (distributions in excess of net investment income)		79,655			(2,273	)		11,569			(2,274	)
Total net assets	$	393,656,562		$	69,744,949		$	315,235,552		$	75,626,536
Net Asset Value, Offering Price and Redemption Proceeds Per Share (Unlimited shares authorized, $0.0001 par value)
Investor Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	10.09		$	12.48		$	11.14		$	11.44
Advisor Class of Shares:
Net asset value and redemption proceeds per share	$	10.09		$	12.48		$	11.14		$	—
Offering price per share	$	10.48	(3)	$	12.97	(3)	$	11.57	(3)	$	—
Institutional Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	10.08		$	12.48		$	11.13		$	11.44
Net Assets:
Investor class of shares	$	274,659,545		$	15,546,321		$	133,878,305		$	39,775,308
Advisor class of shares		5,682,659			1,882,290			2,395,818			0
Institutional class of shares		113,314,358			52,316,338			178,961,429			35,851,228
Total net assets	$	393,656,562		$	69,744,949		$	315,235,552		$	75,626,536
Shares Outstanding:
Investor class of shares		27,222,815			1,245,993			12,022,219			3,476,225
Advisor class of shares		563,322			150,823			215,146			—
Institutional class of shares		11,237,398			4,193,415			16,072,992			3,133,068
Total shares outstanding		39,023,535			5,590,231			28,310,357			6,609,293
Investments, at identified cost	$	622,489,396		$	78,690,034	(2)	$	476,959,017		$	88,311,450	(2)

(1) Including $172,588,701, $13,689,429, $142,213,709 and $17,947,919, respectively, of securities loaned.

(2) Market value of affiliated money market funds as of August 31, 2010 were $1,964,977 and $3,662,916, respectively. Cost of affiliated money market funds as of August 31, 2010 were $1,964,977 and $3,662,916, respectively.

(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)

99

August 31, 2010

Statements of Assets and Liabilities Marshall Funds

	Government Money Market Fund		Tax-Free Money Market Fund		Prime Money Market Fund
Assets:
Investments in securities, at value	$	262,060,530	$	896,111,752	$	2,793,035,334
Investments in repurchase agreements		405,628,199		—		763,988,939
Cash		—		1,000		—
Dividends receivable		—		2,411		—
Interest receivable		90,361		1,288,744		1,597,707
Receivable for investments sold		—		17,005,382		—
Receivable for capital stock sold		—		139,706		655,820
Prepaid expenses		23,057		31,520		59,595
Total assets		667,802,147		914,580,515		3,559,337,395
Liabilities:
Payable for investments purchased		—		7,000,000		—
Payable for income distribution		22,919		205,636		487,836
Payable to affiliates (Note 5)		103,035		190,279		817,048
Other liabilities		38,508		49,357		145,920
Total liabilities		164,462		7,445,272		1,450,804
Total net assets	$	667,637,685	$	907,135,243	$	3,557,886,591
Net Assets Consist of:
Paid-in-capital	$	667,637,685	$	907,135,190	$	3,558,161,195
Accumulated net realized loss on investments		—		—		(315,301	)
Undistributed net investment income		—		53		40,697
Total net assets	$	667,637,685	$	907,135,243	$	3,557,886,591
Net Asset Value, Offering Price and Redemption Proceeds Per Share
(Unlimited shares authorized, $0.0001 par value)
Investor Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	1.00	$	1.00	$	1.00
Advisor Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	—	$	—	$	1.00
Institutional Class of Shares:
Net asset value, offering price and redemption proceeds per share	$	1.00	$	1.00	$	1.00
Net Assets:
Investor class of shares	$	353,636,579	$	299,374,424	$	1,412,770,529
Advisor class of shares		—		—		68,035,363
Institutional class of shares		314,001,106		607,760,819		2,077,080,699
Total net assets	$	667,637,685	$	907,135,243	$	3,557,886,591
Shares Outstanding:
Investor class of shares		353,636,850		299,366,765		1,412,951,624
Advisor class of shares		—		—		68,064,882
Institutional class of shares		314,000,835		607,768,425		2,077,144,765
Total shares outstanding		667,637,685		907,135,190		3,558,161,271
Investments, at identified cost	$	667,688,729	$	896,111,752	$	3,557,024,273

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

100

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101

Year Ended August 31, 2010

Statements of Operations Marshall Funds

	Large-Cap Value Fund			Large-Cap Growth Fund			Mid-Cap Value Fund			Mid-Cap Growth Fund
Investment Income:
Dividend income	$	3,922,045		$	1,978,594		$	3,791,390		$	1,184,674
Interest income		3,571			4,595			7,796			6,283
Securities lending income		71,337			116,052			138,056			257,740
Total income		3,996,953			2,099,241			3,937,242			1,448,697
Expenses:
Investment advisory fee (Note 5)		1,418,424			1,306,040			1,796,898			1,604,163
Shareholder services fees (Note 5)—
Investor class of shares		202,068			158,844			321,356			158,600
Advisor class of shares		16,670			14,490			16,706			9,112
Administrative fees (Note 5)		174,939			161,078			221,485			197,847
Portfolio accounting fees		90,526			85,712			103,508			97,456
Recordkeeping fees (Note 5)		179,060			194,531			223,964			170,014
Custodian fees (Note 5)		37,825			34,828			47,741			42,778
Registration fees		47,648			44,573			47,956			47,226
Professional fees		30,660			30,660			30,660			30,660
Printing and postage		26,443			24,519			35,901			25,787
Directors’ fees		16,748			16,748			16,748			16,748
Insurance premiums		1,965			1,652			2,242			1,964
Miscellaneous		8,543			8,457			7,519			8,432
Total expenses		2,251,519			2,082,132			2,872,684			2,410,787
Deduct (Note 5)—
Expense waivers		(107,603	)		(121,625	)		(95,430	)		(80,635	)
Net expenses		2,143,916			1,960,507			2,777,254			2,330,152
Net investment income (loss)		1,853,037			138,734			1,159,988			(881,455	)
Net Realized and Unrealized Gain (Loss) on Investments and Options:
Net realized gain on investment transactions		1,733,266			20,901,834			16,132,575			27,399,015
Net realized loss on options		(1,013,489	)		(880,867	)		—			—
Net change in unrealized appreciation (depreciation) on investments and options		(1,407,361	)		(14,504,555	)		(654,828	)		1,202,544
Net realized and unrealized gain (loss) on investments and options		(687,584	)		5,516,412			15,477,747			28,601,559
Change in net assets resulting from operations	$	1,165,453		$	5,655,146		$	16,637,735		$	27,720,104

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

102

Year Ended August 31, 2010

Statements of Operations Marshall Funds

	Small-Cap Growth Fund			International Stock Fund			Emerging Markets Equity Fund
Investment Income:
Dividend income	$	479,298		$	2,098,002	(1)	$	1,040,035	(1)
Interest income		13,561			686			450
Securities lending income		466,223			25,934			—
Total income		959,082			2,124,622			1,040,485
Expenses:
Investment advisory fee (Note 5)		3,298,329			795,268			584,425
Shareholder services fees (Note 5)—
Investor class of shares		381,166			76,150			28,838
Advisor class of shares		41,929			6,937			908
Administrative fees (Note 5)		299,094			73,565			54,059
Portfolio accounting fees		127,390			15,354			11,662
Recordkeeping fees (Note 5)		300,801			142,045			106,904
Custodian fees (Note 5)		57,966			170,737			146,846
Registration fees		52,156			49,260			41,444
Professional fees		30,660			30,660			30,660
Printing and postage		52,226			20,236			24,667
Directors’ fees		16,748			16,748			16,748
Insurance premiums		2,459			1,166			488
Miscellaneous		8,414			12,753			9,741
Total expenses		4,669,338			1,410,879			1,057,390
Deduct (Note 5)—
Expense waivers		(232,048	)		(372,721	)		(297,122	)
Net expenses		4,437,290			1,038,158			760,268
Net investment income (loss)		(3,478,208	)		1,086,464			280,217
Net Realized and Unrealized Gain on Investments and Foreign Currency:
Net realized gain on investment transactions		60,461,823			11,335,736	(2)		2,738,193	(2)
Net realized loss on foreign currency contracts		—			(213,299	)		(23,909	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation		(21,329,131	)		(10,966,606	)		5,183,591
Net realized and unrealized gain on investments and foreign currency		39,132,692			155,831			7,897,875
Change in net assets resulting from operations	$	35,654,484		$	1,242,295		$	8,178,092

(1) Net of foreign taxes withheld of $200,440 and $142,576, respectively.

(2) Net of foreign taxes withheld of $259,200 and $142,839, respectively.

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

103

Year Ended August 31, 2010

Statements of Operations Marshall Funds

	Ultra Short Tax-Free Fund (1)			Short-Term Income Fund			Short- Intermediate Bond Fund			Intermediate Tax-Free Fund
Investment Income:
Dividend income	$	88,753	(2)	$	307,844		$	—		$	91,960	(2)
Interest income		2,651,968			3,745,390			5,580,450			10,690,629
Securities lending income		—			10,922			127,398			—
Total income		2,740,721			4,064,156			5,707,848			10,782,589
Expenses:
Investment advisory fee (Note 5)		300,086			229,245			705,216			1,561,093
Shareholder services fees (Note 5)—
Investor class of shares		58,462			101,456			149,602			650,456
Advisor class of shares		—			6,832			12,271			—
Administrative fees (Note 5)		138,189			106,026			163,081			237,534
Portfolio accounting fees		88,852			81,580			91,123			112,849
Recordkeeping fees (Note 5)		34,692			76,705			103,768			81,262
Custodian fees (Note 5)		29,207			22,925			35,261			47,857
Registration fees		37,225			44,064			46,757			50,963
Professional fees		27,088			30,660			30,660			30,660
Printing and postage		10,525			10,413			13,035			19,790
Directors’ fees		15,297			16,748			16,748			16,748
Insurance premiums		499			989			1,861			1,443
Miscellaneous		9,406			9,238			9,115			8,102
Total expenses		749,528			736,881			1,378,498			2,818,757
Deduct (Note 5)—
Expense waivers		(241,806	)		(227,415	)		(246,953	)		(1,387,754	)
Net expenses		507,722			509,466			1,131,545			1,431,003
Net investment income		2,232,999			3,554,690			4,576,303			9,351,586
Net Realized and Unrealized Gain on Investments and Futures Contracts:
Net realized gain (loss) on investment transactions		(8,856	)		412,131			6,068,435			1,188,244
Net realized gain (loss) on futures contracts		(70,036	)		154,088			—			(188,585	)
Net change in unrealized appreciation on investments		1,162,316			3,255,175			10,194,298			15,278,917
Net realized and unrealized gain on investments and futures contracts		1,083,424			3,821,394			16,262,733			16,278,576
Change in net assets resulting from operations	$	3,316,423		$	7,376,084		$	20,839,036		$	25,630,162

(1) Reflects operations for the period from October 1, 2009 (commencement of operations) to August 31, 2010.

(2) Dividend income from investments in affiliated money market funds as of August 31, 2010 were $88,753 and $91,960, respectively.

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

104

Year Ended August 31, 2010

Statements of Operations Marshall Funds

	Government Income Fund			Corporate Income Fund			Aggregate Bond Fund			Core Plus Bond Fund
Investment Income:
Dividend income	$	—		$	8,295	(1)	$	—		$	9,638	(1)
Interest income		16,906,142			1,978,042			9,499,644			2,943,711
Securities lending income		254,901			3,337			163,665			4,206
Total income		17,161,043			1,989,674			9,663,309			2,957,555
Expenses:
Investment advisory fee (Note 5)		1,696,641			105,063			1,085,081			168,410
Shareholder services fees (Note 5)—
Investor class of shares		689,821			25,221			269,270			80,271
Advisor class of shares		13,071			4,329			4,731			—
Administrative fees (Note 5)		379,286			38,873			249,188			62,312
Portfolio accounting fees		163,335			52,785			119,423			52,808
Recordkeeping fees (Note 5)		311,066			48,361			114,420			82,816
Custodian fees (Note 5)		67,416			8,405			51,938			13,473
Registration fees		51,939			41,349			47,295			30,208
Professional fees		30,660			30,660			30,660			30,660
Printing and postage		48,561			5,634			21,779			21,074
Directors’ fees		16,748			16,748			16,748			16,747
Insurance premiums		4,696			271			2,328			565
Miscellaneous		10,011			9,102			6,329			8,627
Total expenses		3,483,251			386,801			2,019,190			567,971
Deduct (Note 5)—
Expense waivers		(447,479	)		(126,112	)		(253,203	)		(117,197	)
Net expenses		3,035,772			260,689			1,765,987			450,774
Net investment income		14,125,271			1,728,985			7,897,322			2,506,781
Net Realized and Unrealized Gain on Investments:
Net realized gain on investment transactions		15,215,197			1,376,579			10,802,503			1,712,741
Net change in unrealized appreciation on investments		9,197,292			2,505,575			13,090,311			2,528,933
Net realized and unrealized gain on investments		24,412,489			3,882,154			23,892,814			4,241,674
Change in net assets resulting from operations	$	38,537,760		$	5,611,139		$	31,790,136		$	6,748,455

(1) Dividend income from investments in affiliated money market funds as of August 31, 2010 were $8,295 and $9,638, respectively.

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

105

Year Ended August 31, 2010

Statements of Operations Marshall Funds

	Government Money Market Fund			Tax-Free Money Market Fund			Prime Money Market Fund
Investment Income:
Dividend income	$	—		$	31,870		$	—
Interest income		2,238,767			6,850,793			19,364,977
Total income		2,238,767			6,882,663			19,364,977
Expenses:
Investment advisory fee (Note 5)		1,549,651			1,880,660			5,993,049
Shareholder services fees (Note 5)—
Investor class of shares		1,056,209			921,619			4,408,206
Advisor class of shares		—			—			193,134
Administrative fees (Note 5)		243,502			296,544			1,338,817
Portfolio accounting fees		139,790			167,085			422,836
Recordkeeping fees (Note 5)		36,994			87,260			485,538
Custodian fees (Note 5)		102,483			119,033			451,085
Registration fees		58,603			64,808			92,731
Professional fees		30,660			30,660			30,660
Printing and postage		12,815			16,636			27,243
Directors’ fees		16,748			16,748			16,748
Insurance premiums		8,931			10,039			54,695
Distribution services fees (Note 5)—
Advisor class of shares		—			—			231,760
Treasury temporary guarantee program fees		14,668			15,926			101,142
Miscellaneous		26,122			18,022			52,198
Total expenses		3,297,176			3,645,040			13,899,842
Deduct (Note 5)—
Expense waivers		(1,415,774	)		(826,835	)		(1,347,190	)
Net expenses		1,881,402			2,818,205			12,552,652
Net investment income		357,365			4,064,458			6,812,325
Net Realized and Unrealized Gain on Investments:
Net realized gain on investment transactions		—			230,425			7,139
Net realized and unrealized gain on investments		—			230,425			7,139
Change in net assets resulting from operations	$	357,365		$	4,294,883		$	6,819,464

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

106

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107

Statements of Changes in Net Assets

	Large-Cap Value Fund						Large-Cap Growth Fund						Mid-Cap Value Fund
	Year Ended August 31, 2010			Year Ended August 31, 2009			Year Ended August 31, 2010			Year Ended August 31, 2009			Year Ended August 31, 2010			Year Ended August 31, 2009
Increase (Decrease) in Net Assets
Operations—
Net investment income (loss)	$	1,853,037		$	3,658,417		$	138,734		$	797,241		$	1,159,988		$	1,431,475
Net realized gain (loss) on investments		1,733,266			(37,102,984	)		20,901,834			(44,588,911	)		16,132,575			(39,972,514	)
Net realized loss on options		(1,013,489	)		(2,722,126	)		(880,867	)		(30,820	)		—			—
Net realized loss on foreign currency contracts		—			—			—			—			—			—
Net change in unrealized appreciation (depreciation) on investments, options and foreign currency translation		(1,407,361	)		(17,574,982	)		(14,504,555	)		(1,745,548	)		(654,828	)		(5,079,717	)
Change in net assets resulting from operations		1,165,453			(53,741,675	)		5,655,146			(45,568,038	)		16,637,735			(43,620,756	)
Distributions to Shareholders—
Distributions to shareholders from net investment income—
Investor class of shares		(975,489	)		(1,377,504	)		(144,241	)		(58,726	)		(775,449	)		(294,257	)
Advisor class of shares		(80,088	)		(121,809	)		(13,229	)		(6,116	)		(40,878	)		(15,316	)
Institutional class of shares		(1,512,836	)		(2,178,950	)		(392,103	)		(183,732	)		(906,429	)		(469,726	)
Distributions to shareholders from net realized gain on investments—
Investor class of shares		—			(24,221	)		—			—			—			(7,232,389	)
Advisor class of shares		—			(2,159	)		—			—			—			(376,448	)
Institutional class of shares		—			(33,771	)		—			—			—			(5,222,252	)
Change in net assets resulting from distributions to shareholders		(2,568,413	)		(3,738,414	)		(549,573	)		(248,574	)		(1,722,756	)		(13,610,388	)
Capital Stock Transactions—
Proceeds from sale of shares		22,409,599			44,072,604			17,399,058			17,652,264			40,185,586			54,552,954
Net asset value of shares issued to shareholders in payment of distributions declared		2,028,332			2,755,463			472,923			207,088			1,464,910			13,064,375
Cost of shares redeemed		(47,333,876	)		(63,303,444	)		(27,847,410	)		(42,772,972	)		(49,253,360	)		(65,811,665	)
Redemption fees		12,860			13,224			4,033			5,351			27,083			22,150
Change in net assets resulting from capital stock transactions		(22,883,085	)		(16,462,153	)		(9,971,396	)		(24,908,269	)		(7,575,781	)		1,827,814
Change in net assets		(24,286,045	)		(73,942,242	)		(4,865,823	)		(70,724,881	)		7,339,198			(55,403,330	)
Net Assets:
Beginning of period		192,064,041			266,006,283			161,682,147			232,407,028			219,403,760			274,807,090
End of period	$	167,777,996		$	192,064,041		$	156,816,324		$	161,682,147		$	226,742,958		$	219,403,760
Undistributed net investment income (distributions in excess of net investment income) included in net assets at end of period	$	290,806		$	1,011,643		$	137,828		$	548,667		$	805,501		$	1,421,995

(1) Reflects operations for the period from December 23, 2008 (commencement of operations) to August 31, 2009.

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

108

Marshall Funds

Mid-Cap Growth Fund						Small-Cap Growth Fund						International Stock Fund						Emerging Markets Equity Fund
Year Ended August 31, 2010			Year Ended August 31, 2009			Year Ended August 31, 2010			Year Ended August 31, 2009			Year Ended August 31, 2010			Year Ended August 31, 2009			Year Ended August 31, 2010			Period Ended August 31, 2009 (1)
$	(881,455	)	$	175,524		$	(3,478,208	)	$	(132,694	)	$	1,086,464		$	2,292,080		$	280,217		$	263,214
	27,399,015			(64,892,778	)		60,461,823			(56,881,191	)		11,335,736			(128,611,259	)		2,738,193			1,208,988
	—			—			—			—			—			—			—			—
	—			—			—			—			(213,299	)		(759,754	)		(23,909	)		(56,437	)
	1,202,544			9,856,388			(21,329,131	)		7,731,452			(10,966,606	)		32,204,904			5,183,591			10,236,850
	27,720,104			(54,860,866	)		35,654,484			(49,282,433	)		1,242,295			(94,874,029	)		8,178,092			11,652,615
	—			—			—			—			(898,289	)		(1,659,132	)		(110,836	)		(1	)
	—			—			—			—			(80,632	)		(127,818	)		(2,648	)		(1	)
	(172,984	)		—			—			—			(1,543,296	)		(5,360,807	)		(475,490	)		(7,843	)
	—			(2,368,141	)		—			—			—			(1,365,721	)		(363,626	)		—
	—			(162,618	)		—			—			—			(105,214	)		(8,688	)		—
	—			(5,871,904	)		—			—			—			(3,501,067	)		(1,404,060	)		—
	(172,984	)		(8,402,663	)		—			—			(2,522,217	)		(12,119,759	)		(2,365,348	)		(7,845	)
	22,713,218			36,938,058			179,822,966			61,167,394			8,623,269			19,544,737			14,106,107			41,312,240
	143,811			8,280,069			—			—			2,367,921			11,420,414			2,331,575			7,843
	(39,428,575	)		(36,830,656	)		(106,747,686	)		(64,112,223	)		(60,425,669	)		(157,501,245	)		(7,580,853	)		(7,141,214	)
	5,796			3,813			43,390			15,615			4,240			11,396			2			21
	(16,565,750	)		8,391,284			73,118,670			(2,929,214	)		(49,430,239	)		(126,524,698	)		8,856,831			34,178,890
	10,981,370			(54,872,245	)		108,773,154			(52,211,647	)		(50,710,161	)		(233,518,486	)		14,669,575			45,823,660
	192,546,214			247,418,459			242,772,248			294,983,895			114,300,637			347,819,123			45,823,660			—
$	203,527,584		$	192,546,214		$	351,545,402		$	242,772,248		$	63,590,476		$	114,300,637		$	60,493,235		$	45,823,660
$	—		$	167,803		$	(221,564	)	$	(61,655	)	$	1,422,158		$	1,948,782		$	192,919		$	209,270

109

Statements of Changes in Net Assets

	Ultra Short Tax-Free Fund			Short-Term Income Fund						Short-Intermediate Bond Fund
	Period Ended August 31, 2010 (1)			Year Ended August 31, 2010			Year Ended August 31, 2009			Year Ended August 31, 2010			Year Ended August 31, 2009
Increase (Decrease) in Net Assets
Operations—
Net investment income	$	2,232,999		$	3,554,690		$	3,856,145		$	4,576,303		$	11,335,124
Net realized gain (loss) on investments		(8,856	)		412,131			(484,009	)		6,068,435			(25,696,778	)
Net realized gain (loss) on futures contracts		(70,036	)		154,088			1,234,294			—			—
Net change in unrealized appreciation (depreciation) on investments		1,162,316			3,255,175			(1,018,950	)		10,194,298			11,742,873
Change in net assets resulting from operations		3,316,423			7,376,084			3,587,480			20,839,036			(2,618,781	)
Distributions to Shareholders—
Distributions to shareholders from net investment income—
Investor class of shares		(295,572	)		(1,139,578	)		(929,109	)		(1,216,386	)		(3,522,955	)
Advisor class of shares		0			(76,903	)		(74,503	)		(99,869	)		(245,180	)
Institutional class of shares		(1,946,830	)		(2,172,187	)		(2,768,959	)		(2,553,819	)		(7,802,296	)
Distributions to shareholders from net realized gain on investments—
Investor class of shares		—			—			—			—			—
Advisor class of shares		—			—			—			—			—
Institutional class of shares		—			—			—			—			—
Change in net assets resulting from distributions to shareholders		(2,242,402	)		(3,388,668	)		(3,772,571	)		(3,870,074	)		(11,570,431	)
Capital Stock Transactions—
Proceeds from sale of shares		357,738,451			59,327,003			34,964,043			28,779,762			25,010,731
Net asset value of shares issued to shareholders in payment of distributions declared		398,430			2,027,604			2,360,767			2,736,062			7,171,019
Cost of shares redeemed		(52,902,440	)		(33,572,020	)		(43,086,968	)		(51,569,007	)		(135,539,691	)
Redemption fees		180			4,353			6,109			8,071			17,622
Change in net assets resulting from capital stock transactions		305,234,621			27,786,940			(5,756,049	)		(20,045,112	)		(103,340,319	)
Change in net assets		306,308,642			31,774,356			(5,941,140	)		(3,076,150	)		(117,529,531	)
Net Assets:
Beginning of period		—			97,265,875			103,207,015			183,039,051			300,568,582
End of period	$	306,308,642		$	129,040,231		$	97,265,875		$	179,962,901		$	183,039,051
Undistributed net investment income (distributions in excess of net investment income) included in net assets at end of period	$	—		$	107,056		$	45,245		$	170,293		$	208,707

(1) Reflects operations for the period from October 1, 2009 (commencement of operations) to August 31, 2010.

(2) Reflects operations for the period from December 23, 2008 (commencement of operations) to August 31, 2009.

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

110

Marshall Funds

Intermediate Tax-Free Fund						Government Income Fund						Corporate Income Fund						Aggregate Bond Fund
Year Ended August 31, 2010			Year Ended August 31, 2009			Year Ended August 31, 2010			Year Ended August 31, 2009			Year Ended August 31, 2010			Year Ended August 31, 2009 (2)			Year Ended August 31, 2010			Year Ended August 31, 2009
$	9,351,586		$	4,335,027		$	14,125,271		$	25,972,522		$	1,728,985		$	530,849		$	7,897,322		$	12,773,846
	1,188,244			(7,785	)		15,215,197			(2,531,664	)		1,376,579			130,245			10,802,503			(878,559	)
	(188,585	)		(35,673	)		—			—			—			—			—			—
	15,278,917			2,750,077			9,197,292			17,393,033			2,505,575			2,425,025			13,090,311			4,310,970
	25,630,162			7,041,646			38,537,760			40,833,891			5,611,139			3,086,119			31,790,136			16,206,257
	(9,351,586	)		(4,338,412	)		(8,139,606	)		(14,783,307	)		(424,284	)		(66,228	)		(2,790,164	)		(3,564,203	)
	—			—			(151,957	)		(215,625	)		(74,924	)		(17,799	)		(49,315	)		(36,267	)
	—			—			(4,607,938	)		(10,419,063	)		(1,304,706	)		(458,208	)		(4,672,012	)		(8,752,098	)
	(263,593	)		(1,080,131	)		—			(8,689,377	)		(44,520	)		—			—			(2,266,047	)
	—			—			—			(122,947	)		(9,812	)		—			—			(12,900	)
	—			—			—			(6,105,219	)		(98,937	)		—			—			(5,839,605	)
	(9,615,179	)		(5,418,543	)		(12,899,501	)		(40,335,538	)		(1,957,183	)		(542,235	)		(7,511,491	)		(20,471,120	)
	315,432,342			76,962,316			77,150,150			67,099,740			46,240,567			19,934,005			97,425,878			39,059,871
	4,601,960			1,982,797			9,867,231			33,118,837			1,732,543			528,018			6,089,791			18,157,966
	(55,240,195	)		(28,394,709	)		(179,603,221	)		(261,712,852	)		(4,611,844	)		(276,200	)		(41,286,844	)		(126,434,621	)
	34,057			15,530			17,484			29,522			20			—			5			3
	264,828,164			50,565,934			(92,568,356	)		(161,464,753	)		43,361,286			20,185,823			62,228,830			(69,216,781	)
	280,843,147			52,189,037			(66,930,097	)		(160,966,400	)		47,015,242			22,729,707			86,507,475			(73,481,644	)
	141,961,241			89,772,204			460,586,659			621,553,059			22,729,707			—			228,728,077			302,209,721
$	422,804,388		$	141,961,241		$	393,656,562		$	460,586,659		$	69,744,949		$	22,729,707		$	315,235,552		$	228,728,077
$	4,029		$	6,629		$	79,655		$	42,975		$	(2,273	)	$	(2,273	)	$	11,569		$	9,749

111

Statements of Changes in Net Assets

	Core Plus Bond Fund						Government Money Market Fund						Tax-Free Money Market Fund
	Year Ended August 31, 2010			Year Ended August 31, 2009 (1)			Year Ended August 31, 2010			Year Ended August 31, 2009			Year Ended August 31, 2010			Year Ended August 31, 2009
Increase (Decrease) in Net Assets Operations—
Net investment income	$	2,506,781		$	1,002,425		$	357,365		$	6,652,735		$	4,064,458		$	13,936,462
Net realized gain on investments		1,712,741			27,629			—			—			230,425			93,085
Net change in unrealized appreciation on investments		2,528,933			3,626,194			—			—			—			—
Change in net assets resulting from operations		6,748,455			4,656,248			357,365			6,652,735			4,294,883			14,029,547
Distributions to Shareholders—
Distributions to shareholders from net investment income—
Investor class of shares		(1,267,616	)		(314,249	)		(42,014	)		(3,275,339	)		(1,060,764	)		(5,434,826	)
Advisor class of shares		—			—			—			—			—			0
Institutional class of shares		(1,479,118	)		(772,233	)		(315,351	)		(3,377,396	)		(3,003,694	)		(8,501,636	)
Distributions to shareholders from net realized gain on investments—
Investor class of shares		(31,288	)		—			—			(1,039	)		(86,477	)		(51,421	)
Advisor class of shares		—			—			—			—			—			—
Institutional class of shares		(39,316	)		—			—			(763	)		(143,948	)		(68,421	)
Change in net assets resulting from distributions to shareholders		(2,817,338	)		(1,086,482	)		(357,365	)		(6,654,537	)		(4,294,883	)		(14,056,304	)
Capital Stock Transactions—
Proceeds from sale of shares		24,643,166			51,829,308			5,339,833,493			5,689,170,966			1,906,174,302			1,891,525,219
Net asset value of shares issued to shareholders in payment of distributions declared		2,671,836			1,029,742			89,629			2,935,056			628,092			3,192,292
Cost of shares redeemed		(9,747,181	)		(2,305,042	)		(5,548,624,053	)		(5,400,388,418	)		(1,984,989,702	)		(1,731,893,998	)
Redemption fees		3,824			—			—			—			—			—
Change in net assets resulting from capital stock transactions		17,571,645			50,554,008			(208,700,931	)		291,717,604			(78,187,308	)		162,823,513
Change in net assets		21,502,762			54,123,774			(208,700,931	)		291,715,802			(78,187,308	)		162,796,756
Net Assets:
Beginning of period		54,123,774			—			876,338,616			584,622,814			985,322,551			822,525,795
End of period	$	75,626,536		$	54,123,774		$	667,637,685		$	876,338,616		$	907,135,243		$	985,322,551
Undistributed net investment income (distributions in excess of net investment income) included in net assets at end of period	$	(2,274	)	$	(2,273	)	$	—		$	—		$	53		$	53

(1) Reflects operations for the period from December 23, 2008 (commencement of operations) to August 31, 2009.

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

112

Marshall Funds

Prime Money Market Fund
Year Ended August 31, 2010			Year Ended August 31, 2009
$	6,812,325		$	65,697,817
	7,139			20,606
	—			—
	6,819,464			65,718,423
	(699,078	)		(26,643,410	)
	(7,597	)		(1,166,815	)
	(6,105,650	)		(37,887,592	)
	—			—
	—			—
	—			—
	(6,812,325	)		(65,697,817	)
	12,932,785,896			15,565,296,803
	1,513,014			16,650,552
	(14,743,532,983	)		(15,980,737,651	)
	—			—
	(1,809,234,073	)		(398,790,296	)
	(1,809,226,934	)		(398,769,690	)
	5,367,113,525			5,765,883,215
$	3,557,886,591		$	5,367,113,525
$	40,697		$	40,697

113

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)(4)			Ratios to Average Net Assets(5)									Net assets, end of period (000 omitted)		Portfolio turnover rate(4)
																										Net Expenses(2)			Expense waiver(2)			Net investment income (loss)(2)
Large-Cap Value Fund
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)		12.07		0.16			(2.64	)		(2.48	)		(0.17	)		(0.00	)		(0.17	)		9.42		(20.50	)		1.33			—			1.80			80,537		73
2010(3)		9.42		0.09			(0.12	)		(0.03	)		(0.12	)		—			(0.12	)		9.27		(0.42	)		1.27			0.06			0.85			73,579		82
Large-Cap Growth Fund
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	(6)		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)		11.82		0.03			(2.20	)		(2.17	)		(0.01	)		—			(0.01	)		9.64		(18.34	)		1.39			—			0.38			55,665		142
2010(3)		9.64		(0.01	)		0.29			0.28			(0.02	)		—			(0.02	)		9.90		2.94			1.28			0.07			(0.07	)		60,125		121
Mid-Cap Value Fund
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)		12.15		0.06			(2.01	)		(1.95	)		(0.02	)		(0.55	)		(0.57	)		9.63		(14.74	)		1.37			—			0.64			122,051		63
2010(3)		9.63		0.04			0.69			0.73			(0.06	)		—			(0.06	)		10.30		7.62			1.27			0.04			0.38			121,288		58
Mid-Cap Growth Fund
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)		17.10		(0.01	)		(3.87	)		(3.88	)		—			(0.60	)		(0.60	)		12.62		(21.96	)		1.35			—			(0.07	)		53,443		224
2010(3)		12.62		(0.08	)		1.88			1.80			—			—			—			14.42		14.26			1.26			0.04			(0.58	)		63,584		133
Small-Cap Growth Fund
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)		14.19		(0.02	)		(2.25	)		(2.27	)		—			—			—			11.92		(16.00	)		1.60			—			(0.18	)		102,186		233
2010(3)		11.92		(0.15	)		2.26			2.11			—			—			—			14.03		17.70			1.47			0.07			(1.18	)		163,225		153
International Stock Fund
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)		12.41		0.22			(3.19	)		(2.97	)		(0.33	)		(0.27	)		(0.60	)		8.84		(22.94	)		1.69			—			1.33			34,718		113
2010(3)		8.84		0.14			(0.24	)		(0.10	)		(0.26	)		—			(0.26	)		8.48		(1.25	)		1.45			0.48			1.28			27,883		116
Emerging Markets Equity Fund
2009(3)(8)		10.00		0.08			4.38			4.46			(0.01	)		—			(0.01	)		14.45		44.61			1.50			1.27			1.52			6,691		58
2010(3)		14.45		0.03			2.37			2.40			(0.16	)		(0.52	)		(0.68	)		16.17		16.63			1.50			0.51			0.28			12,856		30
Ultra Short Tax-Free Fund
2010(3)(9)		10.00		0.11			0.07			0.18			(0.11	)		—			(0.11	)		10.07		1.82			0.55			0.16			1.25			33,189		83
Short-Term Income Fund
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)		8.92		0.36			0.04			0.40			(0.35	)		—			(0.35	)		8.97		4.77			0.60			0.27			4.11			29,403		49
2010(3)		8.97		0.27			0.32			0.59			(0.26	)		—			(0.26	)		9.30		6.61			0.60			0.20			2.95			52,353		50
Short-Intermediate Bond Fund
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)		8.91		0.46			0.09			0.55			(0.46	)		—			(0.46	)		9.00		7.05			0.80			0.14			5.64			59,653		360
2010(3)		9.00		0.23			0.86			1.09			(0.19	)		—			(0.19	)		9.90		12.25			0.80			0.14			2.43			65,383		373

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

114

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)(4)		Ratios to Average Net Assets(5)						Net assets, end of period (000 omitted)		Portfolio turnover rate(4)
																							Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)
Intermediate Tax-Free Fund
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)		10.21		0.41		0.19			0.60		(0.41	)		(0.12	)		(0.53	)		10.28	6.21		0.55		0.58		4.14			141,961	92
2010(3)		10.28		0.38		0.61			0.99		(0.38	)		(0.02	)		(0.40	)		10.87	9.78		0.55		0.53		3.58			422,804	45
Government Income Fund
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)		9.38		0.45		0.36			0.81		(0.44	)		(0.26	)		(0.70	)		9.49	9.26		0.80		0.10		4.96			296,190	360
2010(3)		9.49		0.32		0.57			0.89		(0.29	)		—			(0.29	)		10.09	9.49		0.80		0.11		3.24			274,660	383
Corporate Income Fund
2009(3)(8)		10.00		0.34		1.57			1.91		(0.34	)		—			(0.34	)		11.57	19.44		0.80		1.04		5.07			5,570	38
2010(3)		11.57		0.50		1.00			1.50		(0.52	)		(0.07	)		(0.59	)		12.48	13.28		0.80		0.30		4.01			15,546	80
Aggregate Bond Fund
2007(3)(7)		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)		10.01		0.50		0.48			0.98		(0.48	)		(0.32	)		(0.80	)		10.19	11.12		0.80		0.12		5.40			76,892	445
2010(3)		10.19		0.29		0.94			1.23		(0.28	)		—			(0.28	)		11.14	12.25		0.80		0.09		2.73			133,878	449
Core Plus Bond Fund
2009(3)(8)		10.00		0.25		0.82			1.07		(0.26	)		—			(0.26	)		10.81	10.83		0.80		0.32		4.02			21,057	26
2010(3)		10.81		0.40		0.68			1.08		(0.44	)		(0.01	)		(0.45	)		11.44	10.19		0.80		0.17		3.58			39,776	72
Government Money Market Fund
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		0.00			0.03		(0.03	)		(0.00	)		(0.03	)		1.00	3.19		0.45		0.10		2.91			309,487	—
2009		1.00		0.01		0.00			0.01		(0.01	)		(0.00	)		(0.01	)		1.00	0.56		0.47	(10)	0.08		0.53			476,685	—
2010		1.00		0.00		—			0.00		(0.00	)		—			(0.00	)		1.00	0.01		0.28		0.26		0.01			353,637	—
Tax-Free Money Market Fund
2006		1.00		0.03		0.00			0.03		(0.03	)		(0.00	)		(0.03	)		1.00	2.84		0.45		0.13		2.85			192,603	—
2007		1.00		0.03		0.00			0.03		(0.03	)		(0.00	)		(0.03	)		1.00	3.33		0.45		0.13		3.28			308,414	—
2008		1.00		0.03		0.00			0.03		(0.03	)		(0.00	)		(0.03	)		1.00	2.57		0.45		0.09		2.48			424,211	—
2009		1.00		0.01		0.00			0.01		(0.01	)		(0.00	)		(0.01	)		1.00	1.42		0.48	(10)	0.08		1.40			389,143	—
2010		1.00		0.00		0.00			0.00		(0.00	)		(0.00	)		(0.00	)		1.00	0.30		0.45		0.09		0.29			299,374	—
Prime Money Market Fund
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		1.00		0.01		—			0.01		(0.01	)		—			(0.01	)		1.00	1.15		0.49	(10)	0.00	(6)	1.16			2,240,416	—
2010		1.00		0.00		—			0.00		(0.00	)		—			(0.00	)		1.00	0.04		0.41		0.05		0.04			1,412,771	—

(1) Based on net asset value.

(2) The contractual and voluntary expense waivers pursuant to Note 5 of the financial statements are reflected in both the expense and net investment income (loss) ratios.

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

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

(5) Annualized for periods less than one year.

(6) Represents less than 0.005%.

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

(8) Reflects operations for the period from December 23, 2008 (commencement of operations) to August 31, 2009.

(9) Reflects operations for the period from October 1, 2009 (commencement of operations) to August 31, 2010.

(10) 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)

115

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			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)(4)			Ratios to Average Net Assets(5)									Net assets, end of period (000 omitted)		Portfolio turnover rate(4)
																										Net Expenses(2)			Expense waiver(2)			Net investment income (loss)(2)
Large-Cap Value Fund
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)		12.07		0.17			(2.65	)		(2.48	)		(0.17	)		(0.00	)		(0.17	)		9.42		(20.50	)		1.33			—			1.81			6,543		73
2010(3)		9.42		0.09			(0.12	)		(0.03	)		(0.12	)		—			(0.12	)		9.27		(0.42	)		1.27			0.06			0.85			5,930		82
Large-Cap Growth Fund
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	(6)		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)		11.82		0.03			(2.20	)		(2.17	)		(0.01	)		—			(0.01	)		9.64		(18.34	)		1.39			—			0.38			5,405		142
2010(3)		9.64		(0.01	)		0.29			0.28			(0.02	)		—			(0.02	)		9.90		2.94			1.28			0.07			(0.07	)		5,258		121
Mid-Cap Value Fund
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)		12.15		0.06			(2.01	)		(1.95	)		(0.02	)		(0.55	)		(0.57	)		9.63		(14.74	)		1.37			—			0.63			6,238		63
2010(3)		9.63		0.04			0.69			0.73			(0.06	)		—			(0.06	)		10.30		7.62			1.27			0.04			0.38			6,126		58
Mid-Cap Growth Fund
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)		17.10		(0.01	)		(3.87	)		(3.88	)		—			(0.60	)		(0.60	)		12.62		(21.96	)		1.35			—			(0.06	)		3,245		224
2010(3)		12.62		(0.09	)		1.89			1.80			—			—			—			14.42		14.26			1.26			0.04			(0.58	)		3,552		133
Small-Cap Growth Fund
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)		14.19		(0.02	)		(2.25	)		(2.27	)		—			—			—			11.92		(16.00	)		1.60			—			(0.19	)		12,685		233
2010(3)		11.92		(0.14	)		2.25			2.11			—			—			—			14.03		17.70			1.47			0.07			(1.18	)		19,284		153
International Stock Fund
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)		12.41		0.14			(3.11	)		(2.97	)		(0.33	)		(0.27	)		(0.60	)		8.84		(22.94	)		1.69			—			1.45			2,827		113
2010(3)		8.84		0.12			(0.22	)		(0.10	)		(0.26	)		—			(0.26	)		8.48		(1.25	)		1.45			0.48			1.29			2,560		116
Emerging Markets Equity Fund
2009(3)(8)		10.00		0.07			4.39			4.46			(0.01	)		—			(0.01	)		14.45		44.61			1.50			1.27			1.28			79		58
2010(3)		14.45		0.08			2.32			2.40			(0.16	)		(0.52	)		(0.68	)		16.17		16.63			1.50			0.49			0.49			641		30
Short-Term Income Fund
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)		8.92		0.36			0.05			0.41			(0.35	)		—			(0.35	)		8.98		4.89			0.60			0.27			4.21			1,824		49
2010(3)		8.98		0.27			0.31			0.58			(0.26	)		—			(0.26	)		9.30		6.50			0.60			0.20			2.95			4,001		50

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

116

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		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)(4)		Ratios to Average Net Assets(5)						Net assets, end of period (000 omitted)		Portfolio turnover rate(4)
																							Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)
Short-Intermediate Bond Fund
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)		8.90		0.45		0.10			0.55		(0.46	)		—			(0.46	)		8.99	7.05		0.80		0.14		5.63			4,840	360
2010(3)		8.99		0.23		0.87			1.10		(0.19	)		—			(0.19	)		9.90	12.37		0.80		0.14		2.44			4,804	373
Government Income Fund
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)		9.38		0.45		0.36			0.81		(0.44	)		(0.26	)		(0.70	)		9.49	9.26		0.80		0.10		4.95			4,516	360
2010(3)		9.49		0.32		0.57			0.89		(0.29	)		—			(0.29	)		10.09	9.49		0.80		0.11		3.19			5,683	383
Corporate Income Fund
2009(3)(8)		10.00		0.34		1.57			1.91		(0.34	)		—			(0.34	)		11.57	19.46		0.80		1.04		5.10			1,233	38
2010(3)		11.57		0.50		1.00			1.50		(0.52	)		(0.07	)		(0.59	)		12.48	13.29		0.80		0.30		4.15			1,882	80
Aggregate Bond Fund
2007(3)(7)		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)		10.01		0.49		0.49			0.98		(0.48	)		(0.32	)		(0.80	)		10.19	11.13		0.80		0.12		5.17			1,527	445
2010(3)		10.19		0.29		0.94			1.23		(0.28	)		—			(0.28	)		11.14	12.25		0.80		0.09		2.74			2,396	449
Prime Money Market Fund
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		1.00		0.01		—			0.01		(0.01	)		—			(0.01	)		1.00	0.85		0.78	(9)	0.01		0.91			102,679	—
2010		1.00		0.00		—			0.00		(0.00	)		—			(0.00	)		1.00	0.01		0.45		0.31		0.01			68,035	—

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

(2) The contractual and voluntary expense waivers pursuant to Note 5 of the financial statements are reflected in both the expense and net investment income (loss) ratios.

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

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

(5) Annualized for periods less than one year.

(6) Represents less than 0.005%.

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

(8) Reflects operations for the period from December 23, 2008 (commencement of operations) to August 31, 2009.

(9) 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)

117

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			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)(4)			Ratios to Average Net Assets(5)
																										Net Expenses(2)			Expense waiver(2)			Net investment income (loss)(2)			Net assets, end of period (000 omitted)		Portfolio turnover rate(4)
Large-Cap Value Fund
2008(3)(8)	$	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)		12.07		0.19			(2.64	)		(2.45	)		(0.19	)		(0.00	)		(0.19	)		9.43		(20.27	)		1.08			—			2.04			104,984		73
2010(3)		9.43		0.11			(0.11	)		0.00			(0.15	)		—			(0.15	)		9.28		(0.14	)		1.02			0.06			1.09			88,269		82
Large-Cap Growth Fund
2008(3)(8)		11.97		0.01			(0.14	)		(0.13	)		—			—			—			11.84		(1.09	)		1.03			—			0.30			149,952		122
2009(3)		11.84		0.06			(2.21	)		(2.15	)		(0.02	)		—			(0.02	)		9.67		(18.16	)		1.14			—			0.62			100,612		142
2010(3)		9.67		0.02			0.29			0.31			(0.04	)		—			(0.04	)		9.94		3.17			1.03			0.07			0.18			91,433		121
Mid-Cap Value Fund
2008(3)(8)		12.55		0.04			(0.42	)		(0.38	)		—			—			—			12.17		(3.03	)		1.02			—			0.59			99,009		41
2009(3)		12.17		0.07			(2.01	)		(1.94	)		(0.05	)		(0.55	)		(0.60	)		9.63		(14.59	)		1.12			—			0.90			91,115		63
2010(3)		9.63		0.06			0.69			0.75			(0.09	)		—			(0.09	)		10.29		7.83			1.02			0.04			0.63			99,329		58
Mid-Cap Growth Fund
2008(3)(8)		17.09		(0.01	)		0.06			0.05			—			—			—			17.14		0.29			1.01			—			(0.19	)		171,529		186
2009(3)		17.14		0.02			(3.88	)		(3.86	)		—			(0.60	)		(0.60	)		12.68		(21.79	)		1.10			—			0.18			135,858		224
2010(3)		12.68		(0.05	)		1.89			1.84			(0.02	)		—			(0.02	)		14.50		14.49			1.01			0.04			(0.33	)		136,392		133
Small-Cap Growth Fund
2008(3)(8)		14.73		(0.03	)		(0.48	)		(0.51	)		—			—			—			14.22		(3.46	)		1.27			—			(0.49	)		134,623		174
2009(3)		14.22		0.01			(2.26	)		(2.25	)		—			—			—			11.97		(15.82	)		1.35			—			0.05			127,901		233
2010(3)		11.97		(0.12	)		2.27			2.15			—			—			—			14.12		17.96			1.22			0.07			(0.93	)		169,036		153
International Stock Fund
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)		12.63		0.29			(3.27	)		(2.98	)		(0.42	)		(0.27	)		(0.69	)		8.96		(22.51	)		1.44			—			1.64			76,756		113
2010(3)		8.96		0.25			(0.32	)		(0.07	)		(0.29	)		—			(0.29	)		8.60		(0.94	)		1.20			0.46			1.43			33,147		116
Emerging Markets Equity Fund
2009(3)(9)		10.00		0.09			4.39			4.48			(0.01	)		—			(0.01	)		14.47		44.82			1.25			1.27			1.54			39,054		58
2010(3)		14.47		0.09			2.35			2.44			(0.18	)		(0.52	)		(0.70	)		16.21		16.88			1.25			0.51			0.53			46,996		30
Ultra Short Tax-Free Fund
2010(3)(10)		10.00		0.13			0.07			0.20			(0.13	)		—			(0.13	)		10.07		2.05			0.30			0.16			1.52			273,120		83
Short-Term Income Fund
2007(3)(7)		9.02		0.11			0.00			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)		8.93		0.38			0.04			0.42			(0.37	)		—			(0.37	)		8.98		5.03			0.35			0.27			4.47			66,039		49
2010(3)		8.98		0.29			0.32			0.61			(0.28	)		—			(0.28	)		9.31		6.87			0.35			0.20			3.19			72,686		50
Short-Intermediate Bond Fund
2007(3)(7)		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)		8.90		0.48			0.09			0.57			(0.48	)		—			(0.48	)		8.99		7.32			0.55			0.14			5.89			118,546		360
2010(3)		8.99		0.26			0.87			1.13			(0.22	)		—			(0.22	)		9.90		12.65			0.55			0.14			2.69			109,776		373
Government Income Fund
2007(3)(7)		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)		9.37		0.48			0.36			0.84			(0.46	)		(0.26	)		(0.72	)		9.49		9.65			0.55			0.10			5.22			159,881		360
2010(3)		9.49		0.35			0.55			0.90			(0.31	)		—			(0.31	)		10.08		9.65			0.55			0.11			3.52			113,314		383

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

118

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		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)(4)		Ratios to Average Net Assets(5)
																							Net Expenses(2)		Expense waiver(2)		Net investment income (loss)(2)		Net assets, end of period (000 omitted)		Portfolio turnover rate(4)
Corporate Income Fund
2009(3)(9)	$	10.00	$	0.35	$	1.58		$	1.93	$	(0.36	)	$	—		$	(0.36	)	$	11.57	19.63	%	0.55	%	1.04	%	4.88	%	$	15,927	38	%
2010(3)		11.57		0.53		0.99			1.52		(0.54	)		(0.07	)		(0.61	)		12.48	13.56		0.55		0.30		4.13			52,317	80
Aggregate Bond Fund
2007(3)(7)		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)		10.01		0.52		0.48			1.00		(0.50	)		(0.32	)		(0.82	)		10.19	11.40		0.55		0.12		5.66			150,309	445
2010(3)		10.19		0.32		0.93			1.25		(0.31	)		—			(0.31	)		11.13	12.43		0.55		0.09		3.03			178,962	449
Core Plus Bond Fund
2009(3)(9)		10.00		0.26		0.83			1.09		(0.28	)		—			(0.28	)		10.81	11.04		0.55		0.32		3.73			33,067	26
2010(3)		10.81		0.42		0.68			1.10		(0.46	)		(0.01	)		(0.47	)		11.44	10.46		0.55		0.17		3.84			35,851	72
Government Money Market Fund
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		0.00			0.03		(0.03	)		(0.00	)		(0.03	)		1.00	3.45		0.20		0.10		3.33			275,136	—
2009		1.00		0.01		0.00			0.01		(0.01	)		(0.00	)		(0.01	)		1.00	0.80		0.23	(11)	0.07		0.75			399,654	—
2010		1.00		0.00		—			0.00		(0.00	)		—			(0.00	)		1.00	0.09		0.20		0.09		0.09			314,001	—
Tax-Free Money Market Fund
2006		1.00		0.03		0.00			0.03		(0.03	)		(0.00	)		(0.03	)		1.00	3.09		0.20		0.13		3.10			116,409	—
2007		1.00		0.04		0.00			0.04		(0.04	)		(0.00	)		(0.04	)		1.00	3.59		0.20		0.13		3.53			243,842	—
2008		1.00		0.03		0.00			0.03		(0.03	)		(0.00	)		(0.03	)		1.00	2.83		0.20		0.09		2.67			398,315	—
2009		1.00		0.02		0.00			0.02		(0.02	)		(0.00	)		(0.02	)		1.00	1.68		0.23	(11)	0.08		1.62			596,180	—
2010		1.00		0.01		0.00			0.01		(0.01	)		(0.00	)		(0.01	)		1.00	0.55		0.20		0.09		0.53			607,761	—
Prime Money Market Fund
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		1.00		0.01		—			0.01		(0.01	)		—			(0.01	)		1.00	1.40		0.24	(11)	0.00	(6)	1.32			3,024,018	—
2010		1.00		0.00		—			0.00		(0.00	)		—			(0.00	)		1.00	0.25		0.20		0.01		0.25			2,077,081	—

(1) Based on net asset value.

(2) The contractual and voluntary expense waivers pursuant to Note 5 pf the financial statements are reflected in both the expense and net investment income (loss) ratios.

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

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

(5) Annualized for periods less than one year.

(6) Represents less than 0.005%.

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

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

(9) Reflects operations for the period from December 23, 2008 (commencement of operations) to August 31, 2009.

(10) Reflects operations for the period from October 1, 2009 (commencement of operations) to August 31, 2010.

(11) 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)

119

August 31, 2010

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. As of August 31, 2010, the Corporation consisted of eighteen 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 Ultra Short Tax-Free Fund (“Ultra Short Tax-Free Fund”)		X*	X*	To provide current income exempt from federal income tax consistent with the preservation of capital.
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 October 1, 2009.

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 in the United States of America (“GAAP”) 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

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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 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. Fixed income securities which are not exchange traded 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 would 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 Funds have retained an independent fair value pricing service to assist in fair 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.

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 will enter into repurchase agreements only 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. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

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.

121

Notes to Financial Statements (continued)

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.

During the year ended August 31, 2010, the Ultra Short Tax-Free Fund had an average value of $2,829 in short futures outstanding, the Short-Term Income Fund had an average value of $37,967 in long futures outstanding, and the Intermediate Tax-Free Fund had an average value of $19,279 in short futures outstanding. At August 31, 2010, the Funds had no outstanding futures contracts.

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 to create investment exposure consistent with their investment objectives. 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 may also 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 year ended August 31, 2010, the Large-Cap Value Fund had $1,013,489 in realized losses on all option contracts and the Large-Cap Growth Fund had $880,867 in realized losses on all option contracts. During the year ended August 31, 2010, the Large-Cap Value Fund had average written and purchased options outstanding of 3,478 contracts and 4,770 contracts, respectively, while the Large-Cap Growth Fund had average purchased options outstanding of 1,248 contracts.

The following is a summary of written option activity:

	Large-Cap Value Fund					Large-Cap Growth Fund
Contracts	Number of Contracts		Premium			Number of Contracts		Premium
Outstanding @ 8/31/2009	1,681		$	155,802		—		$	—
Options written	13,652			1,229,517		4,570			537,681
Options expired	(1,700	)		(91,476	)	(2,280	)		(185,957	)
Options exercised	(1,218	)		(135,793	)	(2,000	)		(61,999	)
Options closed	(7,431	)		(648,609	)	(290	)		(289,725	)
Outstanding @ 8/31/2010	4,984		$	509,441		—		$	—

At August 31, 2010, the Large-Cap Value Fund had the following outstanding written options:

Contracts	Type	Expiration Date	Exercise Price		Number Of Contracts	Market Value		Unrealized Appreciation
Bank of America Corp.	Call	January 2011	$	20.00	3,922	$	17,649	$	249,044
CME Group, Inc.	Call	January 2011		370.00	26		1,560		36,945
Halliburton Co.	Call	January 2011		35.00	676		53,066		85,039
McKesson Corp.	Call	January 2011		75.00	360		9,900		56,238
Total					4,984			$	427,266

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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.

Additional information on each illiquid restricted security held by the Funds at August 31, 2010 is as follows:

Fund	Security	Acquisition Date		Acquisition Cost		Value
Tax-Free Money Market Fund	Term Tender Custodial Receipts		3/26/2010	$	20,064,636	$	20,051,338
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.		2/1/2010		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 collateral is discussed in “Investment Valuations” in Note 2 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 the portfolio securities back from the borrower on a timely basis, in which case the Fund may lose certain investment opportunities. A Fund also is subject to the risks associated with the investments of cash collateral received from the borrower.

123

Notes to Financial Statements (continued)

Cash collateral received as part of the securities lending program was jointly pooled and invested in the following securities as of August 31, 2010(1):

Description	Value
Barclays Bank, PLC, 0.525%, 7/19/2011	$	25,002,675
Blackrock Liquidity TempCash Money Market Fund, 0.277%		63,336,065
Blackrock Liquidity TempFund Money Market Fund, 0.249%		150,060,963
Dreyfus Cash Management Plus, Inc., Money Market Fund, 0.272%		160,000,000
Dreyfus Institutional Cash Advantage Money Market Fund, 0.270%		65,000,000
FCAR Owner Trust I, 0.540%, 9/15/2010(2)		24,955,000
Fidelity Institutional Money Market Fund, 0.280%		164,500,000
Goldman Sachs Financial Money Market Fund, 0.232%		1,000,000
Metlife Insurance FA, 0.738%, 9/1/2010		20,000,000
Natixis U.S. Finance Co., LLC, 0.610%, 10/22/2010(2)		24,924,174
Panasonic Finance America, Inc., 0.500%, 10/18/2010(2)		24,966,319
Skandinaviska Enskilda Bank, 0.500%, 10/28/2010(2)		24,969,792
Standard Chartered Bank, 0.868%, 8/12/2011		24,996,925
State Street Bank & Trust Co., 0.728%, 3/2/2011		24,998,925
Westpac Banking Corp., 0.590%, 6/10/2011		25,000,000
Total	$	823,710,838

(1) The collateral pool is managed by the fixed income group within M&I Investment Management Corp., the Funds’ investment adviser (the “Adviser”). 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 August 31, 2010.

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

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 guaranteed 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 fell below $0.995 (a “Guarantee Event”) during the coverage period and the Fund was required to liquidate. The Program’s guarantee was 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. The Treasury elected not to extend the program beyond September 18, 2009. The Government Money Market Fund, Tax-Free Money Market Fund and Prime Money Market Fund paid a total of $14,668, $15,926 and $101,142, respectively for the year ended August 31, 2010.

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. Fair Value Measurements

Fair Valuation Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosure about fair value measurements. It 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). It also provides guidance on determing when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly, and how that information must be incorporated into fair value measurement.

124

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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 in 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. Common & preferred stocks, options & futures contracts, and mutual funds are generally categorized as Level 1.

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Fixed income securities, repurchase agreements, and securities valued by an independent fair value pricing service are generally categorized as Level 2.

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

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 Rule 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.

	Large-Cap Value Fund
	Level 1		Level 2		Level 3		Total
Common Stocks(1)	$	162,372,175	$	—	$	—	$	162,372,175
Purchased Call Options		227,249		—		—		227,249
Short-Term Investments		—		3,638,466		—		3,638,466
Total	$	162,599,424	$	3,638,466	$	—	$	166,237,890
	Large-Cap Growth Fund
	Level 1		Level 2		Level 3		Total
Common Stocks(1)	$	147,979,681	$	—	$	—	$	147,979,681
Short-Term Investments		—		9,416,544		—		9,416,544
Total	$	147,979,681	$	9,416,544	$	—	$	157,396,225
	Mid-Cap Value Fund
	Level 1		Level 2		Level 3		Total
Common Stocks(1)	$	220,225,544	$	—	$	—	$	220,225,544
Short-Term Investments		—		9,648,190		—		9,648,190
Total	$	220,225,544	$	9,648,190	$	—	$	229,873,734
	Mid-Cap Growth Fund
	Level 1		Level 2		Level 3		Total
Common Stocks(1)	$	200,222,402	$	—	$	—	$	200,222,402
Short-Term Investments		—		5,985,088		—		5,985,088
Total	$	200,222,402	$	5,985,088	$	—	$	206,207,490
	Small-Cap Growth Fund
	Level 1		Level 2		Level 3		Total
Common Stocks(1)	$	346,695,355	$	—	$	—	$	346,695,355
Short-Term Investments		—		3,090,236		—		3,090,236
Total	$	346,695,355	$	3,090,236	$	—	$	349,785,591
	International Stock Fund
	Level 1		Level 2		Level 3		Total
Common Stocks(1)(2)	$	59,903,196	$	—	$	—	$	59,903,196
Preferred Stocks(1)(2)		685,759		—		—		685,759
Short-Term Investments		—		1,606,805		—		1,606,805
Total	$	60,588,955	$	1,606,805	$	—	$	62,195,760
	Emerging Markets Equity Fund
	Level 1		Level 2		Level 3		Total
Common Stocks(1)(2)	$	59,045,036	$	—	$	—	$	59,045,036
Preferred Stocks(1)		193,594		—		—		193,594
Short-Term Investments		—		1,148,904		—		1,148,904
Total	$	59,238,630	$	1,148,904	$	—	$	60,387,534
	Ultra Short Tax-Free Fund
	Level 1		Level 2		Level 3		Total
Municipals	$	3,315,000	$	275,734,458	$	—	$	279,049,458
Short-Term Investments		—		35,674,847		—		35,674,847
Total	$	3,315,000	$	311,409,305	$	—	$	314,724,305

	Short-Term Income Fund
	Level 1		Level 2		Level 3		Total
Asset-Backed Securities	$	—	$	12,234,878	$	—	$	12,234,878
Collateralized Mortgage Obligations		—		11,749,200		—		11,749,200
Commercial Mortgage Securities		—		21,744,238		—		21,744,238
Corporate Bonds & Notes		—		57,747,257		1,874,988		59,622,245
Municipals		—		2,549,870		—		2,549,870
Mutual Funds		8,733,434		—		—		8,733,434
U.S. Government & U.S. Government Agency Obligations		—		6,133,115		—		6,133,115
U.S. Government Agency-Mortgage Securities		—		720,602		—		720,602
Short-Term Investments		—		6,268,193		—		6,268,193
Total	$	8,733,434	$	119,147,353	$	1,874,988	$	129,755,775
	Short-Intermediate Bond Fund
	Level 1		Level 2		Level 3		Total
Collateralized Mortgage Obligations	$	—	$	4,924,243	$	—	$	4,924,243
Commercial Mortgage Securities		—		18,911,135		—		18,911,135
Corporate Bonds & Notes		—		60,164,935		3,086,400		63,251,335
Municipals		—		2,081,420		—		2,081,420
U.S. Government & U.S. Government Agency Obligations		—		65,193,914		—		65,193,914
U.S. Government Agency-Mortgage Securities				15,669,525		—		15,669,525
Short-Term Investments		—		23,240,746		—		23,240,746
Total	$	—	$	190,185,918	$	3,086,400	$	193,272,318
	Intermediate Tax-Free Fund
	Level 1		Level 2		Level 3		Total
Municipals	$	3,635,000	$	387,018,248	$	—	$	390,653,248
Short-Term Investments		—		44,074,919		—		44,074,919
Total	$	3,635,000	$	431,093,167	$	—	$	434,728,167

125

Notes to Financial Statements (continued)

	Government Income Fund
	Level 1		Level 2		Level 3		Total
Asset-Backed Securities	$	—	$	2,139,684	$	—	$	2,139,684
Collateralized Mortgage Obligations		—		34,803,743		—		34,803,743
Commercial Mortgage Securities		—		37,313,957		—		37,313,957
Corporate Bonds & Notes		—		3,994,716		2,314,800		6,309,516
U.S. Government & U.S. Government Agency Obligations		—		102,499,803		—		102,499,803
U.S. Government Agency-Mortgage Securities		—		211,568,318		—		211,568,318
Short-Term Investments		—		61,666,183		—		61,666,183
Total	$	—	$	453,986,404	$	2,314,800	$	456,301,204
	Corporate Income Fund
	Level 1		Level 2		Level 3		Total
Asset-Backed Securities	$	—	$	6,620,130	$	—	$	6,620,130
Corporate Bonds & Notes		—		57,464,997		—		57,464,997
Short-Term Investments		—		5,464,389		—		5,464,389
Total	$	—	$	69,549,516	$	—	$	69,549,516
	Aggregate Bond Fund
	Level 1		Level 2		Level 3		Total
Collateralized Mortgage Obligations	$	—	$	8,744,546	$	—	$	8,744,546
Commercial Mortgage Securities		—		19,297,091		—		19,297,091
Corporate Bonds & Notes		—		95,203,110		—		95,203,110
Municipals		—		9,300,510		—		9,300,510
U.S. Government & U.S. Government Agency Obligations		—		110,785,655		—		110,785,655
U.S. Government Agency-Mortgage Securities		—		51,477,504		—		51,477,504
Short-Term Investments		—		45,447,341		—		45,447,341
Total	$	—	$	340,255,757	$	—	$	340,255,757
	Core Plus Bond Fund
	Level 1		Level 2		Level 3		Total
Asset-Backed Securities	$	—	$	4,226,283	$	—	$	4,226,283
Commercial Mortgage Securities		—		2,432,866		—		2,432,866
Corporate Bonds & Notes		—		46,853,581		—		46,853,581
U.S. Government & U.S. Government Agency Obligations		—		6,922,566		—		6,922,566
U.S. Government Agency-Mortgage Securities		—		6,421,002		—		6,421,002
Short-Term Investments		—		9,161,934		—		9,161,934
Total	$	—	$	76,018,232	$	—	$	76,018,232

	Government Money Market Fund
	Level 1		Level 2		Level 3		Total
Commercial Paper	$	—	$	24,988,375	$	—	$	24,988,375
Municipals		—		116,065,000		—		116,065,000
U.S. Government & U.S. Government Agency Obligations		—		121,007,155		—		121,007,155
Repurchase Agreements		—		405,628,199		—		405,628,199
Total	$	—	$	667,688,729	$	—	$	667,688,729
	Tax-Free Money Market Fund
	Level 1		Level 2		Level 3		Total
Municipals	$	—	$	895,630,393	$	—	$	895,630,393
Mutual Funds		—		481,359		—		481,359
Total	$	—	$	896,111,752	$	—	$	896,111,752
	Prime Money Market Fund
	Level 1		Level 2		Level 3		Total
Certificates of Deposit	$	—	$	425,000,000	$	—	$	425,000,000
Commercial Paper		—		1,541,251,593		—		1,541,251,593
Corporate Bonds & Notes		—		44,546,319		—		44,546,319
Funding Agreements		—		115,000,000		—		115,000,000
Municipals		—		277,655,000		—		277,655,000
Notes-Variable		—		246,582,422		—		246,582,422
Repurchase Agreements		—		763,988,939		—		763,988,939
Trust Demand Notes		—		143,000,000		—		143,000,000
Total	$	—	$	3,557,024,273	$	—	$	3,557,024,273
	Unrealized Appreciation On Other Financial Instruments(3)
Fund	Level 1		Level 2		Level 3		Total
Large-Cap Value Fund
Written Call Options	$	427,266	$	—	$	—	$	427,266

(1) All sub-categories within Common Stocks and Preferred Stocks represent Level 1 evaluation status.

(2) As described in Note 2, the values of certain equity securities listed or traded on foreign security exchanges may be valued by an independent fair value pricing service on any day when a significant change in value of U.S. traded securities occurs, as measured by the Russell 1000 Index. As a result of such an event at August 31, 2009, these securities were fair valued by the service and categorized in Level 2 but did not require fair valuation at August 31, 2010 and were categorized in Level 1. Such securities represent the only significant transfer between each of the three levels.

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

Following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining value:

Fund	Beginning balance September 1, 2009		Realized gain (loss)		Change in unrealized appreciation (depreciation)		Net purchases (sales)		Transfers in (out) of Level 3		Ending balance August 31, 2010
Short-Term Income Fund Corporate Bonds & Notes	$	1,871,586	$	—	$	3,402	$	—	$	—	$	1,874,988
Short-Intermediate Bond Fund Corporate Bonds & Notes		3,080,800		—		5,600		—		—		3,086,400
Government Income Fund Corporate Bonds & Notes		2,310,600		—		4,200		—		—		2,314,800

126

Marshall Funds

4. 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:

	Year Ended August 31, 2010						Year Ended August 31, 2009
	Shares			Amount			Shares			Amount
LARGE-CAP VALUE FUND—INVESTOR CLASS
Shares sold		1,366,044		$	13,855,875			2,072,447		$	18,338,220
Shares issued to shareholders in payment of distributions declared		93,650			940,210			144,610			1,312,978
Shares redeemed		(2,071,713	)		(20,800,728	)		(2,284,771	)		(21,013,309	)
Net change resulting from investor class share transactions		(612,019	)	$	(6,004,643	)		(67,714	)	$	(1,362,111	)
LARGE-CAP VALUE FUND—ADVISOR CLASS
Shares sold		51,496		$	513,813			95,664		$	821,104
Shares issued to shareholders in payment of distributions declared		7,506			75,357			13,147			119,856
Shares redeemed		(113,862	)		(1,159,965	)		(197,853	)		(1,690,497	)
Net change resulting from advisor class share transactions		(54,860	)	$	(570,795	)		(89,042	)	$	(749,537	)
LARGE-CAP VALUE FUND—INSTITUTIONAL CLASS
Shares sold		809,270		$	8,039,911			2,821,717		$	24,913,280
Shares issued to shareholders in payment of distributions declared		100,693			1,012,765			145,784			1,322,629
Shares redeemed		(2,528,345	)		(25,373,183	)		(4,472,703	)		(40,599,638	)
Net change resulting from institutional class share transactions		(1,618,382	)	$	(16,320,507	)		(1,505,202	)	$	(14,363,729	)
Net change resulting from fund shares transactions		(2,285,261	)	$	(22,895,945	)		(1,661,958	)	$	(16,475,377	)
LARGE-CAP GROWTH FUND—INVESTOR CLASS
Shares sold		1,117,941		$	11,932,858			815,536		$	7,011,579
Shares issued to shareholders in payment of distributions declared		13,198			138,572			6,935			56,034
Shares redeemed		(830,113	)		(8,854,569	)		(1,351,740	)		(11,549,618	)
Net change resulting from investor class share transactions		301,026		$	3,216,861			(529,269	)	$	(4,482,005	)
LARGE-CAP GROWTH FUND—ADVISOR CLASS
Shares sold		60,024		$	631,559			66,847		$	549,944
Shares issued to shareholders in payment of distributions declared		1,227			12,888			738			5,965
Shares redeemed		(90,584	)		(959,610	)		(179,364	)		(1,482,525	)
Net change resulting from advisor class share transactions		(29,333	)	$	(315,163	)		(111,779	)	$	(926,616	)

127

Notes to Financial Statements (continued)

	Year Ended August 31, 2010					Year Ended August 31, 2009
	Shares		Amount			Shares		Amount
LARGE-CAP GROWTH FUND—INSTITUTIONAL CLASS
Shares sold	448,659		$	4,834,641		1,223,463		$	10,090,741
Shares issued to shareholders in payment of distributions declared	30,528			321,463		17,934			145,089
Shares redeemed	(1,683,180	)		(18,033,231	)	(3,504,002	)		(29,740,829	)
Net change resulting from institutional class share transactions	(1,203,993	)	$	(12,877,127	)	(2,262,605	)	$	(19,504,999	)
Net change resulting from fund shares transactions	(932,300	)	$	(9,975,429	)	(2,903,653	)	$	(24,913,620	)
MID-CAP VALUE FUND—INVESTOR CLASS
Shares sold	2,033,731		$	21,907,304		2,932,959		$	23,990,097
Shares issued to shareholders in payment of distributions declared	72,909			745,126		965,089			7,276,768
Shares redeemed	(3,001,603	)		(31,741,161	)	(4,942,979	)		(40,717,561	)
Net change resulting from investor class share transactions	(894,963	)	$	(9,088,731	)	(1,044,931	)	$	(9,450,696	)
MID-CAP VALUE FUND—ADVISOR CLASS
Shares sold	41,477		$	442,463		57,980		$	455,791
Shares issued to shareholders in payment of distributions declared	3,841			39,249		49,848			375,853
Shares redeemed	(98,117	)		(1,054,156	)	(206,847	)		(1,654,755	)
Net change resulting from advisor class share transactions	(52,799	)	$	(572,444	)	(99,019	)	$	(823,111	)
MID-CAP VALUE FUND—INSTITUTIONAL CLASS
Shares sold	1,683,189		$	17,835,819		3,637,265		$	30,107,066
Shares issued to shareholders in payment of distributions declared	66,719			680,535		718,692			5,411,754
Shares redeemed	(1,561,361	)		(16,458,043	)	(3,032,124	)		(23,439,349	)
Net change resulting from institutional class share transactions	188,547		$	2,058,311		1,323,833		$	12,079,471
Net change resulting from fund shares transactions	(759,215	)	$	(7,602,864	)	179,883		$	1,805,664
MID-CAP GROWTH FUND—INVESTOR CLASS
Shares sold	966,118		$	14,121,206		954,450		$	11,054,875
Shares issued to shareholders in payment of distributions declared	—			—		223,029			2,346,269
Shares redeemed	(788,959	)		(11,646,635	)	(1,099,808	)		(13,204,367	)
Net change resulting from investor class share transactions	177,159		$	2,474,571		77,671		$	196,777

128

Marshall Funds

	Year Ended August 31, 2010					Year Ended August 31, 2009
	Shares		Amount			Shares		Amount
MID-CAP GROWTH FUND—ADVISOR CLASS
Shares sold	25,110		$	370,943		18,419		$	208,502
Shares issued to shareholders in payment of distributions declared	—			—		15,192			159,815
Shares redeemed	(35,745	)		(519,945	)	(57,400	)		(631,942	)
Net change resulting from advisor class share transactions	(10,635	)	$	(149,002	)	(23,789	)	$	(263,625	)
MID-CAP GROWTH FUND—INSTITUTIONAL CLASS
Shares sold	562,685		$	8,221,069		2,202,935		$	25,674,681
Shares issued to shareholders in payment of distributions declared	10,448			143,811		547,297			5,773,985
Shares redeemed	(1,880,001	)		(27,261,995	)	(2,045,409	)		(22,994,347	)
Net change resulting from institutional class share transactions	(1,306,868	)	$	(18,897,115	)	704,823		$	8,454,319
Net change resulting from fund shares transactions	(1,140,344	)	$	(16,571,546	)	758,705		$	8,387,471
SMALL-CAP GROWTH FUND—INVESTOR CLASS
Shares sold	8,241,573		$	123,738,549		2,292,168		$	23,078,278
Shares issued to shareholders in payment of distributions declared	—			—		—			—
Shares redeemed	(5,184,896	)		(74,942,507	)	(3,929,112	)		(40,967,633	)
Net change resulting from investor class share transactions	3,056,677		$	48,796,042		(1,636,944	)	$	(17,889,355	)
SMALL-CAP GROWTH FUND—ADVISOR CLASS
Shares sold	558,704		$	8,259,845		305,601		$	3,122,090
Shares issued to shareholders in payment of distributions declared	—			—		—			—
Shares redeemed	(248,971	)		(3,592,899	)	(327,813	)		(3,264,195	)
Net change resulting from advisor class share transactions	309,733		$	4,666,946		(22,212	)	$	(142,105	)
SMALL-CAP GROWTH FUND—INSTITUTIONAL CLASS
Shares sold	3,250,678		$	47,824,572		3,302,236		$	34,967,026
Shares issued to shareholders in payment of distributions declared	—			—		—			—
Shares redeemed	(1,970,320	)		(28,212,280	)	(2,081,876	)		(19,880,395	)
Net change resulting from institutional class share transactions	1,280,358		$	19,612,292		1,220,360		$	15,086,631
Net change resulting from fund shares transactions	4,646,768		$	73,075,280		(438,796	)	$	(2,944,829	)

129

Notes to Financial Statements (continued)

	Year Ended August 31, 2010					Year Ended August 31, 2009
	Shares		Amount			Shares		Amount
INTERNATIONAL STOCK FUND—INVESTOR CLASS
Shares sold	795,728		$	7,375,668		744,689		$	6,305,297
Shares issued to shareholders in payment of distributions declared	97,707			873,498		399,150			2,929,758
Shares redeemed	(1,534,502	)		(13,894,086	)	(4,416,795	)		(36,866,741	)
Net change resulting from investor class share transactions	(641,067	)	$	(5,644,920	)	(3,272,956	)	$	(27,631,686	)
INTERNATIONAL STOCK FUND—ADVISOR CLASS
Shares sold	23,826		$	238,409		19,645		$	174,816
Shares issued to shareholders in payment of distributions declared	8,883			79,412		31,205			229,046
Shares redeemed	(50,806	)		(451,149	)	(156,947	)		(1,187,210	)
Net change resulting from advisor class share transactions	(18,097	)	$	(133,328	)	(106,097	)	$	(783,348	)
INTERNATIONAL STOCK FUND—INSTITUTIONAL CLASS
Shares sold	73,338		$	1,009,192		1,558,774		$	13,064,624
Shares issued to shareholders in payment of distributions declared	156,528			1,415,011		1,111,926			8,261,610
Shares redeemed	(4,941,755	)		(46,080,434	)	(14,154,458	)		(119,447,294	)
Net change resulting from institutional class share transactions	(4,711,889	)	$	(43,656,231	)	(11,483,758	)	$	(98,121,060	)
Net change resulting from fund shares transactions	(5,371,053	)	$	(49,434,479	)	(14,862,811	)	$	(126,536,094	)
EMERGING MARKETS EQUITY FUND—INVESTOR CLASS
Shares sold	434,955		$	6,887,879		494,410		$	5,571,657
Shares issued to shareholders in payment of distributions declared	29,495			473,684		—			—
Shares redeemed	(132,578	)		(2,105,171	)	(31,328	)		(376,134	)
Net change resulting from investor class share transactions	331,872		$	5,256,392		463,082		$	5,195,523
EMERGING MARKETS EQUITY FUND—ADVISOR CLASS
Shares sold	35,086		$	558,652		5,462		$	63,259
Shares issued to shareholders in payment of distributions declared	691			11,099		—			—
Shares redeemed	(1,583	)		(25,046	)	—			—
Net change resulting from advisor class share transactions	34,194		$	544,705		5,462		$	63,259

130

Marshall Funds

	Year Ended August 31, 2010					Year Ended August 31, 2009
	Shares		Amount			Shares		Amount
EMERGING MARKETS EQUITY FUND—INSTITUTIONAL CLASS
Shares sold	424,567		$	6,659,576		3,237,324		$	35,677,324
Shares issued to shareholders in payment of distributions declared	114,922			1,846,792		779			7,843
Shares redeemed	(340,184	)		(5,450,636	)	(538,305	)		(6,765,080	)
Net change resulting from institutional class share transactions	199,305		$	3,055,732		2,699,798		$	28,920,087
Net change resulting from fund shares transactions	565,371		$	8,856,829		3,168,342		$	34,178,869
ULTRA SHORT TAX-FREE FUND—INVESTOR CLASS (1)
Shares sold	5,376,041		$	53,964,477		—		$	—
Shares issued to shareholders in payment of distributions declared	24,301			244,186		—			—
Shares redeemed	(2,106,062	)		(21,172,709	)	—			—
Net change resulting from investor class share transactions	3,294,280		$	33,035,954		—		$	—
ULTRA SHORT TAX-FREE FUND—INSTITUTIONAL CLASS (1)
Shares sold	30,277,287		$	303,773,974		—		$	—
Shares issued to shareholders in payment of distributions declared	15,354			154,244		—			—
Shares redeemed	(3,158,021	)		(31,729,731	)	—			—
Net change resulting from institutional class share transactions	27,134,620		$	272,198,487		—		$	—
Net change resulting from fund shares transactions	30,428,900		$	305,234,441		—		$	—
SHORT-TERM INCOME FUND—INVESTOR CLASS
Shares sold	3,132,304		$	28,684,712		2,079,904		$	17,815,356
Shares issued to shareholders in payment of distributions declared	99,791			916,218		77,944			672,218
Shares redeemed	(877,847	)		(8,037,452	)	(2,045,424	)		(17,674,873	)
Net change resulting from investor class share transactions	2,354,248		$	21,563,478		112,424		$	812,701
SHORT-TERM INCOME FUND—ADVISOR CLASS
Shares sold	261,144		$	2,397,173		22,491		$	194,426
Shares issued to shareholders in payment of distributions declared	7,877			72,411		8,032			68,982
Shares redeemed	(42,020	)		(384,199	)	(56,750	)		(486,139	)
Net change resulting from advisor class share transactions	227,001		$	2,085,385		(26,227	)	$	(222,731	)

131

Notes to Financial Statements (continued)

	Year Ended August 31, 2010					Year Ended August 31, 2009
	Shares		Amount			Shares		Amount
SHORT-TERM INCOME FUND—INSTITUTIONAL CLASS
Shares sold	3,080,496		$	28,245,118		1,935,618		$	16,954,261
Shares issued to shareholders in payment of distributions declared	113,284			1,038,975		188,657			1,619,567
Shares redeemed	(2,737,424	)		(25,150,369	)	(2,938,492	)		(24,925,956	)
Net change resulting from institutional class share transactions	456,356		$	4,133,724		(814,217	)	$	(6,352,128	)
Net change resulting from fund shares transactions	3,037,605		$	27,782,587		(728,020	)	$	(5,762,158	)
SHORT-INTERMEDIATE BOND FUND—INVESTOR CLASS
Shares sold	2,129,417		$	20,268,873		1,083,956		$	8,713,892
Shares issued to shareholders in payment of distributions declared	114,898			1,090,998		379,170			2,968,046
Shares redeemed	(2,272,806	)		(21,394,987	)	(5,535,968	)		(44,047,015	)
Net change resulting from investor class share transactions	(28,491	)	$	(35,116	)	(4,072,842	)	$	(32,365,077	)
SHORT-INTERMEDIATE BOND FUND—ADVISOR CLASS
Shares sold	43,186		$	407,016		72,318		$	549,093
Shares issued to shareholders in payment of distributions declared	9,358			88,774		28,645			224,223
Shares redeemed	(105,402	)		(1,001,302	)	(140,033	)		(1,076,131	)
Net change resulting from advisor class share transactions	(52,858	)	$	(505,512	)	(39,070	)	$	(302,815	)
SHORT-INTERMEDIATE BOND FUND—INSTITUTIONAL CLASS
Shares sold	854,278		$	8,103,873		1,908,109		$	15,747,746
Shares issued to shareholders in payment of distributions declared	164,047			1,556,290		508,474			3,978,750
Shares redeemed	(3,111,622	)		(29,172,718	)	(11,714,499	)		(90,416,545	)
Net change resulting from institutional class share transactions	(2,093,297	)	$	(19,512,555	)	(9,297,916	)	$	(70,690,049	)
Net change resulting from fund shares transactions	(2,174,646	)	$	(20,053,183	)	(13,409,828	)	$	(103,357,941	)
INTERMEDIATE TAX-FREE FUND—INVESTOR CLASS
Shares sold	29,898,484		$	315,432,342		7,716,144		$	76,962,316
Shares issued to shareholders in payment of distributions declared	434,448			4,601,960		204,156			1,982,797
Shares redeemed	(5,240,824	)		(55,240,195	)	(2,900,691	)		(28,394,709	)
Net change resulting from investor class share transactions	25,092,108		$	264,794,107		5,019,609		$	50,550,404

132

Marshall Funds

	Year Ended August 31, 2010					Year Ended August 31, 2009
	Shares		Amount			Shares		Amount
GOVERNMENT INCOME FUND—INVESTOR CLASS
Shares sold	5,541,937		$	54,339,987		4,605,039		$	42,137,788
Shares issued to shareholders in payment of distributions declared	759,713			7,444,948		2,435,909			21,863,877
Shares redeemed	(10,282,341	)		(100,002,135	)	(15,035,590	)		(136,779,995	)
Net change resulting from investor class share transactions	(3,980,691	)	$	(38,217,200	)	(7,994,642	)	$	(72,778,330	)
GOVERNMENT INCOME FUND—ADVISOR CLASS
Shares sold	167,339		$	1,637,963		93,292		$	843,181
Shares issued to shareholders in payment of distributions declared	14,292			140,245		33,273			298,766
Shares redeemed	(94,087	)		(923,320	)	(170,223	)		(1,532,138	)
Net change resulting from advisor class share transactions	87,544		$	854,888		(43,658	)	$	(390,191	)
GOVERNMENT INCOME FUND—INSTITUTIONAL CLASS
Shares sold	2,147,753		$	21,172,200		2,626,002		$	24,118,771
Shares issued to shareholders in payment of distributions declared	233,157			2,282,038		1,225,105			10,956,194
Shares redeemed	(7,994,792	)		(78,677,766	)	(13,579,365	)		(123,400,719	)
Net change resulting from institutional class share transactions	(5,613,882	)	$	(55,223,528	)	(9,728,258	)	$	(88,325,754	)
Net change resulting from fund shares transactions	(9,507,029	)	$	(92,585,840	)	(17,766,558	)	$	(161,494,275	)
CORPORATE INCOME FUND—INVESTOR CLASS
Shares sold	1,018,535		$	12,131,013		499,497		$	5,366,275
Shares issued to shareholders in payment of distributions declared	37,375			447,225		5,592			62,717
Shares redeemed	(291,538	)		(3,466,701	)	(23,468	)		(261,328	)
Net change resulting from investor class share transactions	764,372		$	9,111,537		481,621		$	5,167,664
CORPORATE INCOME FUND—ADVISOR CLASS
Shares sold	88,324		$	1,042,300		105,454		$	1,112,996
Shares issued to shareholders in payment of distributions declared	6,150			73,298		1,273			14,170
Shares redeemed	(50,248	)		(600,646	)	(130	)		(1,460	)
Net change resulting from advisor class share transactions	44,226		$	514,952		106,597		$	1,125,706

133

Notes to Financial Statements (continued)

	Year Ended August 31, 2010					Year Ended August 31, 2009
	Shares		Amount			Shares		Amount
CORPORATE INCOME FUND—INSTITUTIONAL CLASS
Shares sold	2,760,921		$	33,067,254		1,336,178		$	13,454,734
Shares issued to shareholders in payment of distributions declared	100,964			1,212,020		42,044			451,131
Shares redeemed	(45,517	)		(544,497	)	(1,175	)		(13,412	)
Net change resulting from institutional class share transactions	2,816,368		$	33,734,777		1,377,047		$	13,892,453
Net change resulting from fund shares transactions	3,624,966		$	43,361,266		1,965,265		$	20,185,823
AGGREGATE BOND FUND—INVESTOR CLASS
Shares sold	5,461,387		$	57,792,631		1,862,652		$	17,197,766
Shares issued to shareholders in payment of distributions declared	253,613			2,708,803		621,420			5,619,817
Shares redeemed	(1,239,071	)		(13,200,070	)	(2,874,264	)		(26,265,528	)
Net change resulting from investor class share transactions	4,475,929		$	47,301,364		(390,192	)	$	(3,447,945	)
AGGREGATE BOND FUND—ADVISOR CLASS
Shares sold	113,543		$	1,209,722		123,022		$	1,106,530
Shares issued to shareholders in payment of distributions declared	3,934			42,011		4,670			43,108
Shares redeemed	(52,204	)		(554,124	)	(13,607	)		(125,035	)
Net change resulting from advisor class share transactions	65,273		$	697,609		114,085		$	1,024,603
AGGREGATE BOND FUND—INSTITUTIONAL CLASS
Shares sold	3,581,844		$	38,423,525		2,211,105		$	20,755,575
Shares issued to shareholders in payment of distributions declared	313,297			3,338,977		1,387,548			12,495,041
Shares redeemed	(2,575,178	)		(27,532,650	)	(11,055,959	)		(100,044,058	)
Net change resulting from institutional class share transactions	1,319,963		$	14,229,852		(7,457,306	)	$	(66,793,442	)
Net change resulting from fund shares transactions	5,861,165		$	62,228,825		(7,733,413	)	$	(69,216,784	)
CORE PLUS BOND FUND—INVESTOR CLASS
Shares sold	1,811,787		$	19,897,606		1,974,950		$	20,150,882
Shares issued to shareholders in payment of distributions declared	115,998			1,284,669		29,490			312,273
Shares redeemed	(398,875	)		(4,402,958	)	(57,125	)		(594,717	)
Net change resulting from investor class share transactions	1,528,910		$	16,779,317		1,947,315		$	19,868,438

134

Marshall Funds

	Year Ended August 31, 2010					Year Ended August 31, 2009
	Shares		Amount			Shares		Amount
CORE PLUS BOND FUND—INSTITUTIONAL CLASS
Shares sold	430,798		$	4,745,560		3,150,973		$	31,678,426
Shares issued to shareholders in payment of distributions declared	125,407			1,387,167		68,841			717,469
Shares redeemed	(480,724	)		(5,344,223	)	(162,227	)		(1,710,325	)
Net change resulting from institutional class share transactions	75,481		$	788,504		3,057,587		$	30,685,570
Net change resulting from fund shares transactions	1,604,391		$	17,567,821		5,004,902		$	50,554,008
GOVERNMENT MONEY MARKET FUND—INVESTOR CLASS
Shares sold	3,164,298,501		$	3,164,298,501		3,141,289,829		$	3,141,289,829
Shares issued to shareholders in payment of distributions declared	27,654			27,654		1,741,504			1,741,504
Shares redeemed	(3,287,374,618	)		(3,287,374,618	)	(2,975,832,180	)		(2,975,832,180	)
Net change resulting from investor class share transactions	(123,048,463	)	$	(123,048,463	)	167,199,153		$	167,199,153
GOVERNMENT MONEY MARKET FUND—INSTITUTIONAL CLASS
Shares sold	2,175,534,992		$	2,175,534,992		2,547,881,137		$	2,547,881,137
Shares issued to shareholders in payment of distributions declared	61,975			61,975		1,193,552			1,193,552
Shares redeemed	(2,261,249,435	)		(2,261,249,435	)	(2,424,556,238	)		(2,424,556,238	)
Net change resulting from institutional class share transactions	(85,652,468	)	$	(85,652,468	)	124,518,451		$	124,518,451
Net change resulting from fund shares transactions	(208,700,931	)	$	(208,700,931	)	291,717,604		$	291,717,604
TAX-FREE MONEY MARKET FUND—INVESTOR CLASS
Shares sold	730,710,248		$	730,710,248		855,693,216		$	855,693,216
Shares issued to shareholders in payment of distributions declared	546,275			546,275		3,104,179			3,104,179
Shares redeemed	(821,030,431	)		(821,030,431	)	(893,854,512	)		(893,854,512	)
Net change resulting from investor class share transactions	(89,773,908	)	$	(89,773,908	)	(35,057,117	)	$	(35,057,117	)
TAX-FREE MONEY MARKET FUND—INSTITUTIONAL CLASS
Shares sold	1,175,464,054		$	1,175,464,054		1,035,832,003		$	1,035,832,003
Shares issued to shareholders in payment of distributions declared	81,817			81,817		88,113			88,113
Shares redeemed	(1,163,959,271	)		(1,163,959,271	)	(838,039,486	)		(838,039,486	)
Net change resulting from institutional class share transactions	11,586,600		$	11,586,600		197,880,630		$	197,880,630
Net change resulting from fund shares transactions	(78,187,308	)	$	(78,187,308	)	162,823,513		$	162,823,513

135

Notes to Financial Statements (continued)

	Year Ended August 31, 2010						Year Ended August 31, 2009
	Shares			Amount			Shares			Amount
PRIME MONEY MARKET FUND—INVESTOR CLASS
Shares sold		3,457,830,697		$	3,457,830,697			4,497,470,403		$	4,497,483,090
Shares issued to shareholders in payment of distributions declared		157,988			157,988			6,844,569			6,844,569
Shares redeemed		(4,285,637,430	)		(4,285,637,430	)		(4,788,164,994	)		(4,788,164,994	)
Net change resulting from investor class share transactions		(827,648,745	)	$	(827,648,745	)		(283,850,022	)	$	(283,837,335	)
PRIME MONEY MARKET FUND—ADVISOR CLASS
Shares sold		74,583,706		$	74,583,707			132,603,981		$	132,604,656
Shares issued to shareholders in payment of distributions declared		7,583			7,499			1,161,348			1,161,348
Shares redeemed		(109,234,640	)		(109,234,640	)		(171,466,828	)		(171,466,828	)
Net change resulting from advisor class share transactions		(34,643,351	)	$	(34,643,434	)		(37,701,499	)	$	(37,700,824	)
PRIME MONEY MARKET FUND—INSTITUTIONAL CLASS
Shares sold		9,400,371,492		$	9,400,371,492			10,935,190,898		$	10,935,209,057
Shares issued to shareholders in payment of distributions declared		1,347,527			1,347,527			8,644,635			8,644,635
Shares redeemed		(10,348,660,913	)		(10,348,660,913	)		(11,021,105,829	)		(11,021,105,829	)
Net change resulting from institutional class share transactions		(946,941,894	)	$	(946,941,894	)		(77,270,296	)	$	(77,252,137	)
Net change resulting from fund shares transactions		(1,809,233,990	)	$	(1,809,234,073	)		(398,821,817	)	$	(398,790,296	)

(1) Reflects activity for the period from October 1, 2009 (commencement of operations) to August 31, 2010.

136

Marshall Funds

5. Investment Adviser Fee and Other Transactions with Affiliates

Investment Adviser Fee—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.

	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
Ultra Short Tax-Free Fund	0.20		0.19		0.10		0.10
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 Fund 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.

The Adviser has agreed to waive or reduce its investment advisory fee or reimburse expenses to the extent necessary to prevent class specific total annual operating expenses (excluding taxes, interest, brokerage commissions, other investment related costs and extraordinary expenses, such as litigation and other expenses not incurred in the ordinary course of a Fund’s business, and Acquired Fund Fees and Expenses) from exceeding the amounts for the periods set forth below. The Adviser may not terminate this arrangement prior to the date of the Funds’ next updated prospectus unless the investment advisory agreement is terminated. The Adviser may voluntarily choose to waive any portion of its fee beyond its contractual agreement. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

137

Notes to Financial Statements (continued)

	(September 1, 2009 – December 28, 2009) Annualized Contractual Expense Limitation									(December 29, 2009 – August 31, 2010) Annualized Contractual Expense Limitation
Fund	Investor Class			Advisor Class			Institutional Class			Investor Class			Advisor Class			Institutional Class
Large-Cap Value Fund		—	%		—	%		—	%		1.24	%		1.24	%		0.99	%
Large-Cap Growth Fund		—			—			—			1.24			1.24			0.99
Mid-Cap Value Fund		—			—			—			1.24			1.24			0.99
Mid-Cap Growth Fund		—			—			—			1.24			1.24			0.99
Small-Cap Growth Fund		—			—			—			1.44			1.44			1.19
International Stock Fund		1.45			1.45			1.20			1.45			1.45			1.20
Emerging Markets Equity Fund		1.50			1.50			1.25			1.50			1.50			1.25
Ultra Short Tax-Free Fund		0.55			—			0.30			0.55			—			0.30
Short-Term Income Fund		0.60			0.60			0.35			0.60			0.60			0.35
Short-Intermediate Bond Fund		0.80			0.80			0.55			0.80			0.80			0.55
Intermediate Tax-Free Fund		0.55			—			—			0.55			—			—
Government Income Fund		0.80			0.80			0.55			0.80			0.80			0.55
Corporate Income Fund		0.80			0.80			0.55			0.80			0.80			0.55
Aggregate Bond Fund		0.80			0.80			0.55			0.80			0.80			0.55
Core Plus Bond Fund		0.80			—			0.55			0.80			—			0.55
Government Money Market Fund		0.45			—			0.20			0.45			—			0.20
Tax-Free Money Market Fund		0.45			—			0.20			0.45			—			0.20
Prime Money Market Fund		0.45			0.75			0.20			0.45			0.75			0.20

Shareholder Services Fee—Under the terms of a Shareholder Services Agreement with Marshall Investor Services (“MIS”), a division of M&I Trust Company, NA (“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. 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 as listed below.

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

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 year ended August 31, 2010:

Fund	Fees Paid		Fund	Fees Paid
Large-Cap Value Fund	$	78,428	Ultra Short Tax-Free Fund	$	5,233
Large-Cap Growth Fund		72,361	Short-Term Income Fund		10,069
Mid-Cap Value Fund		81,060	Short-Intermediate Bond Fund		6,648
Mid-Cap Growth Fund		78,424	Intermediate Tax-Free Fund		10,390
Small-Cap Growth Fund		101,135	Government Income Fund		79,347
International Stock Fund		62,931	Corporate Income Fund		3,705
Emerging Markets Equity Fund		62,417	Aggregate Bond Fund		67,577
			Core Plus Bond Fund		54,205
			Government Money Market Fund		3,735
			Tax-Free Money Market Fund		48,410
			Prime Money Market Fund		335,301

M&I Trust has agreed to eliminate this recordkeeping fee as of September 1, 2010.

138

Marshall Funds

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 year ended August 31, 2010:

Fund	Fees Paid		Fund	Fees Paid
Large-Cap Value Fund	$	30,560	Short-Term Income Fund	$	4,679
Large-Cap Growth Fund		49,721	Short-Intermediate Bond Fund		54,596
Mid-Cap Value Fund		59,147	Government Income Fund		109,242
Mid-Cap Growth Fund		110,427	Corporate Income Fund		1,429
Small-Cap Growth Fund		199,774	Aggregate Bond Fund		70,138
International Stock Fund		11,110	Core Plus Bond Fund		1,802

Investments in Affiliated Entities—An affiliated entity is an entity in which the Fund has ownership of at least 5% of the voting securities or any investment in a Marshall Fund. Entities which are affiliates of the Fund at year-end are noted in the Fund’s Schedule of Investments. Transactions during the year with entities which are affiliates as of August 31, 2010 are as follows:

Fund/Security	Value Beginning of Year		Purchases		Sales Proceeds		Dividends Credited to Income		Value End of Year
Ultra Short Tax-Free Fund Marshall Tax-Free Money Market Fund, Class I, 0.385%	$	—	$	248,808,898	$	240,666,153	$	88,753	$	8,142,745
Intermediate Tax-Free Fund Marshall Tax-Free Money Market Fund, Class I, 0.385%		10,378,049		180,333,579		162,243,239		91,960		28,468,389
Corporate Income Fund Marshall Prime Money Market Fund, Class I, 0.306%		487,879		86,425,882		84,948,784		8,295		1,964,977
Core Plus Bond Fund Marshall Prime Money Market Fund, Class I, 0.306%		1,599,638		53,322,177		51,258,899		9,638		3,662,916

Interfund Borrowing and Lending—The Funds participate in an interfund lending program. This program allows the Funds to lend cash to and/or borrow cash from other Funds for temporary purposes, although the Money Market Funds cannot participate as borrowers. The program is subject to a number of conditions, including the requirement that the interfund loan rate to be charged to the Funds under the program is (i) more favorable to the lending Fund than the rate it could otherwise obtain from investing cash in repurchase agreements or purchasing shares of a Money Market Fund and (ii) more favorable than the lowest interest rate at which bank short-term loans would be available to the Funds. In addition, a Fund may participate in the program only if its participation is consistent with the Fund’s investment policies and limitations. The Directors are responsible for the oversight of the interfund lending program. The Intermediate Tax-Free Fund and Prime Money Market Fund utilized this program as borrower & lender, respectively, for the period ended August 31, 2010. No interfund borrowing or lending balances existed as of August 31, 2010. For the period ended August 31, 2010, the average daily lending balance was $55, and the weighted average interest rate was 0.86%.

Investment Transactions—The Funds, on occasion, may purchase or sell a security with another Fund or client of the Adviser pursuant to procedures approved by the Directors.

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.

139

Notes to Financial Statements (continued)

6. 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 are charged interest at a rate of 1.250% per annum over the greater of the Federal Funds rate or the London Interbank Offered Rate (LIBOR). The LOC includes a commitment fee of 0.150% per annum on the daily unused portion. The International Stock Fund and Tax-Free Money Market Fund utilized the LOC during the year ended August 31, 2010. No borrowings were outstanding under the LOC at August 31, 2010. For the year ended August 31, 2010, the International Stock Fund and Tax-Free Money Market Fund average daily loan balance outstanding were $41,494 and $12,634, and the weighted average interest rates were 1.040% and 1.549%, respectively.

7. Investment Transactions

Purchases and sales of investments, excluding short-term U.S. government securities, short-term obligations and in-kind contributions, for the year ended August 31, 2010 were as follows:

	Other than U.S. Government Securities				U.S. Government Securities
Fund	Purchases		Sales		Purchases		Sales
Large-Cap Value Fund	$	150,462,858	$	177,688,237	$	—	$	—
Large-Cap Growth Fund		202,276,355		221,661,497		—		—
Mid-Cap Value Fund		133,768,528		141,256,240		—		—
Mid-Cap Growth Fund		272,515,246		287,268,558		—		—
Small-Cap Growth Fund		549,671,892		478,400,473		—		—
International Stock Fund		88,219,261		137,672,582		—		—
Emerging Markets Equity Fund		24,653,898		16,720,883		—		—
Ultra Short Tax-Free Fund		390,133,167		110,980,811		—		—
Short-Term Income Fund		82,760,538		34,607,158		12,937,817		12,506,601
Short-Intermediate Bond Fund		59,947,897		74,202,658		546,049,247		561,122,226
Intermediate Tax-Free Fund		349,327,104		111,400,976		—		—
Government Income Fund		21,964,953		45,621,306		1,660,127,507		1,851,426,475
Corporate Income Fund		66,222,578		26,146,559		1,146,559		1,650,624
Aggregate Bond Fund		121,272,431		100,942,322		1,069,806,240		1,098,241,429
Core Plus Bond Fund		45,770,583		27,307,419		8,331,182		14,854,063

8. 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 impact on the net asset value of the Funds.

The Funds complied with the Financial Accounting Standards Board (“FASB”) Accounting for Uncertainty in Income Taxes which provides guidance for how uncertain tax provisions should be recognized, measured, presented and disclosed in the financial statements. Accounting for Uncertainty in Income Taxes 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.

Accounting for Uncertainty in Income Taxes 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 the taxing authorities (i.e., the last four tax years 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 that Accounting for Uncertainty in Income Taxes resulted in no effect on the Funds’ reported net assets or results of operations as of and during the period ended August 31, 2010. Management of the Funds also is not aware of any tax positions for which it is reasonably possible that the total amounts of recognized tax benefits will significantly change in the next twelve months.

140

Marshall Funds

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	$	186,653,616		$	18,471,975	$	(11,003,468	)	$	7,468,507
Large-Cap Growth Fund		193,600,883			11,247,170		(12,236,469	)		(989,299	)
Mid-Cap Value Fund		287,996,108			28,916,582		(21,560,533	)		7,356,049
Mid-Cap Growth Fund		279,835,249			33,426,820		(9,216,675	)		24,210,145
Small-Cap Growth Fund		486,975,907			43,525,980		(30,792,773	)		12,733,207
International Stock Fund		62,923,387			6,005,408		(4,500,225	)		1,505,183
Emerging Markets Equity Fund		46,240,605			15,678,947		(1,532,018	)		14,146,929
Ultra Short Tax Free Fund		313,628,856			1,213,841		(118,392	)		1,095,449
Short-Term Income Fund		140,982,648			3,191,064		(3,741,821	)		(550,757	)
Short-Intermediate Bond Fund		273,589,860			5,427,128		(7,381,392	)		(1,954,264	)
Intermediate Tax-Free Fund		415,642,809			19,280,210		(194,852	)		19,085,358
Government Income Fund		622,445,154			16,818,703		(5,561,833	)		11,256,870
Corporate Income Fund		78,690,034			5,010,164		(79,564	)		4,930,600
Aggregate Bond Fund		476,967,873			11,620,370		(2,153,575	)		9,466,795
Core Plus Bond Fund		88,311,450			6,197,911		(42,784	)		6,155,127
Government Money Market Fund		667,688,729	*		—		—			—
Tax-Free Money Market Fund		896,111,752	*		—		—			—
Prime Money Market Fund		3,557,024,273	*		—		—			—

* at amortized cost

The tax character of distributions reported on the Statement of Changes in Net Assets for the years ended August 31, 2010 and 2009 was as follows:

	2010						2009
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	$	2,568,413	$	—	$	—	$	3,678,263	$	—	$	60,151
Large-Cap Growth Fund		549,573		—		—		248,574		—		—
Mid-Cap Value Fund		1,722,756		—		—		779,299		—		12,831,089
Mid-Cap Growth Fund		172,984		—		—		—		—		8,402,663
Small-Cap Growth Fund		—		—		—		—		—		—
International Stock Fund		2,522,217		—		—		7,147,757		—		4,972,002
Emerging Markets Equity Fund		2,365,348		—		—		—		—		—
Ultra Short Tax Free Fund		—		—		—		—		—		—
Short-Term Income Fund		3,388,668		—		—		3,772,571		—		—
Short-Intermediate Bond Fund		3,870,074		—		—		11,570,431		—		—
Intermediate Tax-Free Fund		172,214		9,351,586		91,379		604,835		4,338,412		475,296
Government Income Fund		12,899,501		—		—		40,335,538		—		—
Corporate Income Fund		1,957,183		—		—		542,235		—		—
Aggregate Bond Fund		7,511,491		—		—		19,515,996		—		955,124
Core Plus Bond		2,817,338		—		—		1,086,482		—		—
Government Money Market Fund		357,365		—		—		6,654,537		—		—
Tax-Free Money Market Fund		226,651		4,064,458		3,774		116,421		13,936,462		3,421
Prime Money Market Fund		6,812,325		—		—		65,697,817		—		—

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

141

Notes to Financial Statements (continued)

As of August 31, 2010, 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	$	290,806	$	—	$	—	$	(43,462,730	)	$	7,895,773
Large-Cap Growth Fund		137,828		—		—		(27,271,487	)		(989,299	)
Mid-Cap Value Fund		805,501		—		—		(22,111,745	)		7,356,049
Mid-Cap Growth Fund		—		—		—		(38,772,215	)		24,210,145
Small-Cap Growth Fund		—		—		—		(27,357,746	)		12,733,207
International Stock Fund		1,708,492		—		—		(127,853,907	)		1,524,257
Emerging Markets Equity Fund		2,277,352		—		1,041,740		—			14,147,577
Ultra Short Tax Free Fund		—		—		—		(12,025	)		1,095,449
Short-Term Income Fund		107,056		—		—		(5,216,030	)		(550,757	)
Short-Intermediate Bond Fund		170,293		—		—		(33,831,734	)		(1,954,264	)
Intermediate Tax-Free Fund		684,591		208		272,848		—			19,085,358
Government Income Fund		8,721,396		—		—		(1,239,097	)		11,256,870
Corporate Income Fund		713,851		—		560,009		—			4,930,600
Aggregate Bond Fund		9,262,066		—		—		—			9,466,795
Core Plus Bond Fund		523,503		—		828,873		—			6,155,127
Government Money Market Fund		—		—		—		—			—
Tax-Free Money Market Fund		53		—		—		—			—
Prime Money Market Fund		40,697		—		—		(315,301	)		—

At August 31, 2010, 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 carryforwards will expire as follows:

	Capital Loss Carryforward to Expire In
Fund	2011		2012		2013		2014		2015		2016		2017		2018		Total
Large-Cap Value Fund	$	—	$	—	$	—	$	—	$	—	$	—	$	13,304,836	$	29,846,502	$	43,151,338
Large-Cap Growth Fund		—		—		—		—		—		—		20,131,837		7,139,650		27,271,487
Mid-Cap Value Fund		—		—		—		—		—		—		7,825,008		14,286,737		22,111,745
Mid-Cap Growth Fund		—		—		—		—		—		—		32,970,125		5,802,090		38,772,215
Small-Cap Growth Fund		—		—		—		—		—		—		27,357,746		—		27,357,746
International Stock Fund		—		—		—		—		—		—		65,845,358		61,121,347		126,966,705
Short-Term Income Fund		322,004		1,989,874		797,744		906,238		983,288		216,882		—		—		5,216,030
Short-Intermediate Bond Fund		1,234,191		—		—		5,042,619		4,819,127		—		—		20,798,157		31,894,094
Prime Money Market Fund		315,301		—		—		—		—		—		—		—		315,301

During the fiscal year ended August 31, 2010, the Small-Cap Growth, Short-Term Income, and Prime Money Market Funds, respectively, utilized $35,668,440, $558,002 and $7,139 of capital loss carryforwards.

The Short-Term Income Fund had losses expiring during the fiscal year ended August 31, 2010, in the amount of $386,180.

As of August 31, 2010, the Large-Cap Value, International Stock, Ultra Short Tax-Free, Short-Intermediate Bond and Government Income Funds had $311,392, $887,202, $12,025, $1,937,640 and $1,239,097, respectively, of post-October losses, which are deferred until fiscal year 2011 for tax purposes. Net capital losses incurred after October 31, and within the taxable year are deemed to arise on the first day of the Fund’s next taxable year.

9. Shareholder Tax Information (Unaudited)

Of the ordinary income (including short-term capital gain) distributions made by the Funds during the year ended August 31, 2010, the percentages which qualify for the dividend received deduction available to corporate shareholders were as follows:

Large-Cap Value Fund	100	%
Large-Cap Growth Fund	100
Mid-Cap Value Fund	100

142

Marshall Funds

Of the ordinary income (including short-term capital gain) distributions made by the Funds during the year ended August 31, 2010, the percentages which are designated as qualified dividend income were as follows:

Large-Cap Value Fund	100	%
Large-Cap Growth Fund	100
Mid-Cap Value Fund	100
International Stock Fund	100
Emerging Markets Equity Fund	32

For Federal income tax purposes, the Intermediate Tax-Free and Tax-Free Money Market Funds designate long-term capital gain dividends of $91,379 and $3,774, respectively, or the amounts determined to be necessary, for the year ended August 31, 2010.

For Federal income tax purposes, the Short-Term Income, Short-Intermediate Bond, Government Income, Corporate Income, Aggregate Bond, Core Plus Bond, Government Money Market, and Prime Money Market Funds designate qualified interest income dividends of $3,338,778, $3,976,016, $13,087,227, $1,779,471, $7,556,738, $2,749,708, $392,042 and $7,638,460, respectively, or the amounts determined to be necessary, for the year ended August 31, 2010.

For Federal income tax purposes, the Corporate Income and Core Plus Bond designate qualified short-term capital gain of $153,269 and $70,604, respectively, or the amounts determined to be necessary, for the year ended August 31, 2010.

For Federal income tax purposes, the Ultra Short Tax-Free, Intermediate Tax-Free and Tax-Free Money Market Funds designate tax-exempt dividends of $1,902,205, $9,176,297, and $4,467,448, respectively, or the amounts determined to be necessary, for the year ended August 31, 2010.

Pursuant to Section 853 of the Internal Revenue Code of 1986, the International Stock and Emerging Markets Equity Funds, respectively, designate $1,332,811 and $906,138 of income derived from foreign sources and $426,463 and $118,220 of foreign taxes paid, or the amounts determined to be necessary, for the year ended August 31, 2010.

Of the ordinary income (including short-term capital gain) distributions made during the year ended August 31, 2010, the proportionate share of income derived from foreign sources and foreign taxes paid attributable to one share of stock are:

	Foreign Source Income		Foreign Taxes Paid
International Stock Fund	$	0.1790	$	0.0573
Emerging Markets Equity Fund		0.2427		0.0317

10. Recently Issued Accounting Pronouncements

In January 2010, the FASB issued Accounting Standards Update 2010-06 to Fair Value Measurements and Disclosures which clarifies existing disclosure and requires additional disclosures regarding fair value measurements. Effective for fiscal years beginning after December 31, 2010, and for interim periods within those fiscal years, entities will need to disclose information about purchases, sales, issuances and settlements of Level 3 securities on a gross basis, rather than as a net number as currently required. Management continues to evaluate the application of this pronouncement 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.

11. Subsequent Events

On May 5, 2010, the Board of Directors approved the registration of the Marshall Large-Cap Focus Fund which commenced operations on September 1, 2010. The Fund seeks to provide capital appreciation and offers both Investor and Institutional classes. Assets are managed by Delta Asset Management, an operating division of the Adviser.

143

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Marshall Funds, Inc.

In our opinion, the accompanying statement of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Marshall Large-Cap Value Fund, Marshall Large-Cap Growth Fund, Marshall Mid-Cap Value Fund, Marshall Mid-Cap Growth Fund, Marshall Small-Cap Growth Fund, Marshall International Stock Fund, Marshall Emerging Markets Equity Fund, Marshall Ultra Short Tax-Free Fund, Marshall Short-Term Income Fund, Marshall Short-Intermediate Bond Fund, Marshall Intermediate Tax-Free Fund, Marshall Government Income Fund, Marshall Corporate Income Fund, Marshall Aggregate Bond Fund, Marshall Core Plus Bond Fund, Marshall Government Money Market Fund, Marshall Tax-Free Money Market Fund and Marshall Prime Money Market Fund, (each a series of Marshall Funds, Inc. hereafter referred to as the “Funds”) at August 31, 2010, the results of each of their operations for the period then ended, the changes in each of their net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with custodians and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

October 21, 2010

144

Directors and Officers of the Funds

The following tables provide information about each director and officer of the Funds. The address of each director and officer is 111 East Kilbourn Avenue, Suite 200, Milwaukee, WI 53202. The Funds’ Statement of Additional Information includes additional information about the directors and is available, without charge and upon request, by calling 1-800-236-FUND (3863).

INTERESTED DIRECTORS
Name and Age	Position(s) Held with the Corporation	Term of Office and Length of Time Served**	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Director	Other Directorships Held by Director
John M. Blaser* Age: 53	Director and President	Indefinite; since May 1999	Vice President of M&I Investment Management Corp. (“Adviser”) and Marshall & Ilsley Trust Company (“M&I Trust”) since 1998.	19	None
Kenneth C. Krei* Age: 60	Director	Indefinite; since July 2004	Chairman of M&I Financial Advisors, Inc. since January 2005; Director and Chief Executive Officer of the Adviser since July 2003; Director, President and Chief Executive Officer of M&I Trust since July 2003; Senior Vice President of Marshall & Ilsley Corporation (a bank holding company) since July 2003.	19	None
* Mr. Blaser is an “interested person” of the Corporation (as defined in the 1940 Act) due to the positions that he holds with the Corporation, the Adviser and M&I Trust. Mr. Krei is an “interested person” of the Corporation due to the positions that he holds with the Adviser, M&I Trust and Marshall & Ilsley Corporation. ** Each director has been elected to hold office for an indefinite term until his or her successor is duly elected or until his or her death, resignation, retirement or removal.

145

Directors and Officers of the Funds (continued)

INDEPENDENT DIRECTORS
Name and Age	Position(s) Held with the Corporation	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Director	Other Directorships Held by Director
Larry D. Armel Age: 68	Independent Director	Indefinite; since September 2006	Retired; formerly, Chairman, Gold Bank Funds, from 2002 to 2005.	19	None
Ridge A. Braunschweig Age: 57	Independent Director	Since October 2009	Executive Vice President, Chief Financial Officer and Treasurer, since 2000; Vice President of Finance (1985-2000); Controller and Treasurer (1983-1985); Assistant to the President (1981-1983), CPL Industries, Inc. (manufacturing holding company prior to May, 2009; family office since May, 2009)	19	None
Benjamin M. Cutler Age: 65	Independent Director	Indefinite; since July 2004	Chairman, CEO and President, USHEALTH Group, Inc. (a health insurance company), since September 2004.	19	None
John A. Lubs Age: 62	Independent Director	Indefinite; since July 2004	Vice Chairman, Mason Companies, Inc. (a footwear distributor), since October 2004.	19	None
James Mitchell Age: 63	Independent Director	Indefinite; since March 1999	Chief Executive Officer, NOG, Inc. (a metal processing and consulting company), since 1999; Chairman, Ayrshire Precision Engineering (a precision machining company), since 1992; Chairman, Golner Precision Products, Inc. (a supplier of machine parts), from 2004 to 2008; Chief Executive Officer, General Automotive Manufacturing, LLC (an automotive parts manufacturing company), from 2001-2007.	19	None
Barbara J. Pope Age: 62	Independent Director	Indefinite; since March 1999	President of Barbara J. Pope, P.C. (a financial consulting firm) since 1992; President of Sedgwick Street Fund LLC (a private investment partnership), since 1996; formerly, Tax Partner, Price Waterhouse.	19	None
* Each director has been elected to hold office for an indefinite term until his or her successor is duly elected or until his or her death, resignation, retirement or removal.

146

Directors and Officers of the Funds (continued)

PRINCIPAL OFFICERS
Name and Age	Position(s) Held with the Corporation	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
Timothy M. Bonin Age: 37	Treasurer	Elected by the Board annually; since February 2006	Vice President of the Adviser since February 2006; Financial Services Audit Senior Manager, PricewaterhouseCoopers LLP, prior thereto.
John D. Boritzke Age: 54	Vice President	Elected by the Board annually; since October 2001	Senior Vice President of the Adviser and M&I Trust, since 2008; Vice President of the Adviser and M&I Trust, 1993-2008.
Julie A. D’ Angelo Age: 40	Secretary	Elected by the Board annually; since April 2010	Vice President and Securities Counsel of the Adviser and M&I Trust, since 2009; Associate, Foley & Lardner LLP ( a law firm), 2002-2009.
Stephen R. Oliver Age: 59	Chief Compliance Officer and Anti-Money Laundering Compliance Officer	Elected by the Board annually, Chief Compliance Officer; since July 2008 and Anti-Money Laundering Officer; since January 2009	Director and Vice President of M&I Distributors, LLC, since 2007; Vice President M&I Trust and M&I Financial Advisors, Inc., since March 2006; President, Gold Bank Funds from February 2006 to June 2006; Chief Compliance Officer, Gold Bank Funds from December 2001 to June 2006; Senior Vice President, Gold Capital Management, Inc. (broker/dealer) and Senior Vice President, Gold Financial Services, Inc. (financial holding company) from September 1998 to March 2006; President, Gold Insurance, Inc. (full line insurance agency); and President, Gold Reinsurance Company Ltd. (reinsurance company) from December 2001 to March 2006.

147

Shareholder Report Disclosure of Directors’ Approval of Continuation of Contracts

Approval of Continuation of Advisory and Sub-Advisory Contracts

Marshall Funds, Inc. (the “Corporation”) has an investment advisory contract (the “Advisory Contract”) with M&I Investment Management Corp. (the “Adviser”) under which the Adviser is responsible for the management of the business and affairs of each portfolio of the Corporation (each, a “Fund” and collectively, the “Funds”). The Adviser has a sub-advisory contract with Taplin, Canida & Habacht, LLC (“TCH”) on behalf of Marshall Core Plus Bond Fund and Marshall Corporate Income Fund, with Trilogy Global Advisors, LLC (“Trilogy”) on behalf of Marshall Emerging Markets Equity Fund and with each of Acadian Asset Management, LLC (“Acadian”) and Trilogy on behalf of Marshall International Stock Fund (each, a “Sub-Advisory Contract” and collectively, the “Sub-Advisory Contracts” and together with the Advisory Contract, the “Advisory Contracts”). TCH, Acadian and Trilogy are referred to herein as a “Sub-Adviser” and collectively as the “Sub-Advisers.”

The Board, including the Directors who are not “interested persons” of the Corporation, as defined in the Investment Company Act of 1940, as amended (the “Independent Directors”), approved the renewal of the Advisory Contracts pursuant to a process that concluded at the Board’s August 4, 2010 in-person meeting. In connection with its consideration of the Advisory Contract, the Board received and reviewed extensive information provided by the Adviser and its affiliate, Marshall & Ilsley Trust Company N.A., which is the Funds’ administrator (the “Administrator”), and the Sub-Advisers in response to detailed requests of the Independent Directors and their independent legal counsel, including supplemental information that was provided by the Adviser. The Board also received a memorandum from legal counsel advising it of its duties and responsibilities in connection with the review of the Advisory Contracts. The Board discussed with representatives of management the operations of the Funds and the nature, extent and quality of the advisory and other services provided to the Funds by the Adviser and the Sub-Advisers, as applicable. The Board also noted its review of a broad range of information and their discussions with the Funds’ portfolio managers throughout the year at Board meetings. The Board members noted that in evaluating the Advisory Contracts, they were taking into account their accumulated experience as Board members in working with the Adviser on matters related to the funds.

On July 7 and August 4, 2010, the Independent Directors met in-person with management to consider the continuation of the Advisory Contracts, and they also met separately in executive session with their independent legal counsel. Based upon their review, the Independent Directors concluded, on August 4, 2010, that it was in the best interests of each Fund to renew the Advisory Contract and in the best interest of each of Marshall Core Plus Bond Fund, Marshall Corporate Income Fund, Marshall Emerging Markets Equity Fund and Marshall International Stock Fund (collectively, the “Sub-Advised Funds”) to renew each applicable Sub-Advisory Contract, and accordingly, recommended to the Board the renewal of the Advisory Contracts for an additional one-year period. In making these determinations for each Fund, the Board did not identify any single factor or group of factors as all important or controlling and considered all factors together. The material factors and conclusions that formed the basis for the Board’s determinations are discussed separately below.

Advisory Contract with Adviser

Nature, Extent and Quality of Services

In evaluating the nature, extent and quality of the services provided by the Adviser to the Funds, the Board reviewed information describing the resources and key personnel of the Adviser, including the personnel who provide investment management services to the Funds. The Board also considered that the Administrator would continue providing services to the Funds. The Board reviewed information concerning the advisory functions performed by the Adviser for the Funds, as well as other services performed by the Adviser and the Administrator, including managing the execution of portfolio transactions, monitoring adherence to the Funds’ investment restrictions, compliance with Fund policies and procedures and with applicable securities laws and regulations, producing shareholder reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers.

Review of Fund Performance

The Board reviewed the return of each Fund for the one-, three-, five- and ten-year periods ended May 31, 2010, as applicable, as well as the average return of funds within the respective Lipper Inc. (“Lipper”) universes provided by the Adviser for the same time periods. The Lipper universe for each Fund includes all funds with a similar investment objective as classified by Lipper. For the Sub-Advised Funds, the Board considered that the Adviser does not directly manage the investment portfolio, but had delegated those duties to the respective Sub-Advisers. The Board noted that the information provided indicated that the Marshall Aggregate Bond Fund, Marshall Corporate Income Fund, Marshall Government Income Fund, Marshall Government Money Market Fund, Marshall Intermediate Tax-Free Fund, Marshall Large-Cap Growth Fund, Marshall

148

Shareholder Report Disclosure of Directors’ Approval of Continuation of Contracts (continued)

Mid-Cap Growth Fund, Marshall Prime Money Market Fund, Marshall Short-Term Income Fund, Marshall Short-Intermediate Bond Fund, Marshall Small-Cap Growth Fund, and Marshall Tax-Free Money Market Fund had generally performed satisfactorily on the whole relative to their respective Lipper universe during the periods reviewed.

With respect to the Marshall Large-Cap Value Fund and Marshall Mid-Cap Value Fund, the Board considered that one-year performance reflects underperformance but that longer term performance on the whole was satisfactory. For the Marshall Core Plus Bond Fund and Marshall Emerging Markets Equity Fund, the Board noted that performance for the one-year period was below the average return of the respective Lipper universe and considered the limited operating history of each Fund. The Board also noted management’s analysis regarding the Marshall International Stock Fund’s long-term performance issues and the Fund’s recent performance improvement, including second quartile performance for the one-year period and top decile year-to-date performance as of May 31, 2010 in comparison to its Lipper universe. The Board also noted its on-going discussions with management related to the Marshall International Stock Fund and the Adviser’s statements that it would continue to closely monitor the Fund’s performance and the performance of each of the Fund’s Sub-Advisers.

Costs of Services Provided and Profits Realized by the Adviser

The Board reviewed information provided by the Adviser compiled from Morningstar, Inc. (“Morningstar”), Strategic Insight and Lipper (i) comparing each Fund’s advisory fee and net expense ratio to the advisory fee and net expense ratio of a comparable Morningstar peer group (for the equity and fixed-income funds) or Strategic Insight peer group (for the money market funds) and (ii) comparing each Fund’s net expense ratio to the net expense ratio of a comparable Lipper peer group. The Board considered that the Adviser has agreed to contractual expense limitations for the Funds at least until December 31, 2010 (the “Expense Limitations”), and that the net expense ratios for the Funds take into account the effect of the Expense Limitations.

The Board also reviewed the management fees charged by the Adviser to its separate account clients. Although the average separate account fees for certain investment strategies were lower than the advisory fees for Funds with similar investment strategies, the Board noted management’s statements that the Adviser performs significant additional services for the Funds that it does not provide to those other clients, including oversight of the Funds’ other service providers, Board support, regulatory compliance and numerous other services, and that, in serving the Funds, the Adviser assumes many legal risks that it does not assume in servicing many of its other clients.

In reviewing the information, the Board noted that the advisory fees and net expense ratios (for each class) of each Fund were below or within an acceptable range of the median advisory fees and net expense ratios of their respective peer groups.

The Board considered the methodology used by the Adviser in determining compensation payable to its portfolio managers and the competitive environment for investment management talent. The Board also considered the financial condition of the Adviser and certain of its affiliates.

The Board also considered the profitability to the Adviser and its affiliates from their relationships with each Fund. The Board recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and profitability of any manager is affected by numerous factors, including the organizational structure of the particular manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the manager’s capital structure and cost of capital.

Economies of Scale

The Board considered the extent to which economies of scale would be realized as the Funds grow and whether the Funds’ fee levels reflect these economies of scale for the benefit of Fund shareholders. The Board considered each Fund’s asset size and net expense ratio giving effect to each Fund’s Expense Limitation.

Other Benefits to the Adviser

The Board also considered benefits that accrue to the Adviser and its affiliates from their relationships with the Funds, including revenue in the form of administration fees, custody fees, shareholder service fees and securities lending revenue, and that the Adviser engages in soft dollar arrangements in connection with equity security brokerage transactions for the Funds and/or other clients of the Adviser. The Board noted that, other than the services provided by the Adviser pursuant to the Advisory Contract and the fees to be paid by each Fund therefor, the Funds and the Adviser may potentially benefit from their relationship with each other in other ways. The Board also considered that the success of any Fund could attract other business to the Adviser and that the success of the Adviser could enhance the Adviser’s ability to serve the Funds. The Board concluded that, taking into account these benefits, each Fund’s advisory fee was reasonable.

149

Shareholder Report Disclosure of Directors’ Approval of Continuation of Contracts (continued)

Sub-Advisory Contracts with the Sub-Advisers

Nature, Extent and Quality of Services

Similar to the review of the Adviser, the Board considered the nature, extent and quality of services provided under the Sub-Advisory Contracts. The Board reviewed the qualifications and background of each Sub-Adviser, the investment approach and philosophy of each Sub-Adviser and the experience and skills of the investment personnel responsible for the day-to-day management of the Sub-Advised Funds.

Review of Performance

The Board considered the in-person presentation by Acadian and Trilogy at the August 4, 2010 meeting with respect to their respective investment strategy and contribution to the performance of the Marshall International Stock Fund and Trilogy’s investment strategy for the Marshall Emerging Markets Equity Fund. With respect to the Emerging Markets Equity Fund performance, the Board considered that the one-year total return was slightly below the average of the Lipper category and that the Fund had been operational for a limited period of time in a volatile market. As described above, the Independent Directors noted the Marshall International Stock Fund’s long-term performance issues, considered each Sub-Adviser’s analysis of its performance and noted recent performance improvements.

With respect to the performance of the Marshall Core Plus Bond Fund, the Board considered that for the one-year period ended May 31, 2010, that the Fund trailed the average return of its Lipper universe and noted the Adviser’s statement that performance would be closely monitored over a longer period of time.

Costs of Services Provided and Profits Realized by the Sub-Advisers

The Board noted that the sub-advisory fee charged by Acadian at Marshall International Stock Fund’s current asset levels is in line with the average fee it charges to other international funds for which it provides sub-advisory services and to separate accounts with similar investment strategies. The Board noted that the sub-advisory fee charged by Trilogy for the Marshall Emerging Markets Equity Fund is structured differently and its effective fee rate is currently less than the fee it charges to another emerging markets fund for which it provides services and is less than Trilogy’s standard emerging markets fee schedule. The Board also noted that Trilogy’s sub-advisory fee for the Marshall International Stock Fund is less than Trilogy’s standard international equity fee schedule. The Board noted that the sub-advisory fee charged by TCH at the current asset levels of each of Marshall Core Plus Bond Fund and Marshall Corporate Income Fund are in line with the average fee it charges to the other fixed-income fund for which it provides sub-advisory services.

With respect to profitability, the Board considered that the Adviser compensates each Sub-Adviser from its fee. The Board also considered that Acadian and Trilogy have each agreed to pay a portion of the Adviser’s obligation under the Marshall International Stock Fund’s Expense Limitation.

Economies of Scale

The Board considered the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders and considered the small size of the Sub-Advised Funds.

Other Benefits to the Sub-Adviser

The Board considered the use by Trilogy of commissions paid by the Marshall International Stock Fund on its portfolio brokerage transactions to obtain research products and services benefiting the Fund and/or other clients of Trilogy. The Board noted that no other material benefits were identified by any of the Sub-Advisers other than the sub-advisory fee and the potential marketability of performance of the applicable Sub-Advised Fund.

Overall Conclusions

Based on all of the information considered and the conclusions reached, the Board determined that the terms of the Advisory Contracts continue to be fair and reasonable and that the continuation of the Advisory Contract and each Sub-Advisory Contract is in the best interests of each applicable Fund, taking into consideration the costs of services provided and profit realized, economies of scale and other benefits to the Adviser and the Sub-Advisers.

150

NOTES

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.

Marshall Investor Services

P.O. Box 1348

Milwaukee, Wisconsin 53201-1348

1-800-236-FUND (3863)

414-287-8555

http://www.marshallfunds.com

M&I Distributors, LLC, Distributor

M&I Investment Management Corp., Investment Adviser

©2010 Marshall Funds, Inc.

  Not FDIC Insured     No Bank Guarantee     May Lose Value  

10-328-065 (10/10)

Item 2. Code of Ethics.

The Registrant has a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer and principal financial officer. During the period covered by this report, there were no amendments to the provisions of the Code, nor were there any implicit or explicit waivers to the provisions of the Code. The Code of Ethics are incorporated by reference to the Registrant’s Form N-CSR filed November 8, 2006. (SEC Accession No. 0001193125-06-227868)

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Directors has determined that the Registrant has four audit committee financial experts serving on its audit committee, each of whom is “independent” within the meaning of Form N-CSR: Ridge A. Braunschweig, Barbara J. Pope, John A. Lubs and Benjamin M. Cutler. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for purposes of Section 11 of the Securities Act of 1933, as amended, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Directors in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

The aggregate fees billed for professional services by PricewaterhouseCoopers LLP during the fiscal year 2010 and 2009 were as follows:

(a) Audit Fees for Registrant.

Fiscal year ended August 31, 2010	$	313,000
Fiscal year ended August 31, 2009	$	310,000

(b) Audit-Related Fees for Registrant. These fees were billed by the Registrant’s independent auditors for assurance and related services that were reasonably related to the performance of the audit of the Registrant’s financial statements.

Fiscal year ended August 31, 2010	$	57,500
Fiscal year ended August 31, 2009	$	56,500

(c) Tax Fees for Registrant. These fees were billed for professional services rendered by the Registrant’s independent auditors for tax compliance, tax advice and tax planning.

Fiscal year ended August 31, 2010	$	61,500
Fiscal year ended August 31, 2009	$	60,500

(d) All Other Fees.

Fiscal year ended August 31, 2010	None
Fiscal year ended August 31, 2009	None

(e) Audit Committee’s pre-approval policies and procedures.

(1) The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the Registrant,

including services provided to the Registrant’s investment adviser or any entity controlling, controlled by or under common control with the Registrant’s investment adviser that provides ongoing services to the Registrant with respect to any engagement that directly relates to the operations and financial reporting of the Registrant.

(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X: 100% of these fees were approved by the Trust’s Audit Committee as required pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(f) None.

(g) During the last two fiscal years, there were no other non-audit services rendered by the Registrant’s independent auditors to the Registrant, its investment adviser or any entity controlling, controlled by or under the common control with the investment adviser that provides ongoing services to the Registrant.

(h) Not applicable.

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 management investment companies.

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

Not applicable to open-end management investment companies.

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

Not applicable to open-end management 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, as required by Rule 30a-3(b) under the Act. Based on their review, such officers have concluded that the disclosure controls and procedures were effective in ensuring that information required to be disclosed in this report was appropriately recorded, processed, summarized and 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 (17 CFR 270.30a-3(d)) 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)	Code of Ethics. Incorporated by reference to the Registrant’s Form N-CSR filed November 8, 2006. (SEC Accession No. 0001193125-06-227868)
(a) (2)	Certifications required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	Filed herewith.
(a) (3)	Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end management investment companies.
(b)	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Marshall Funds, Inc.

/s/ John M. Blaser

By: John M. Blaser

President

October 21, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

/s/ John M. Blaser

By: John M. Blaser

President

(Principal Executive Officer)

October 21, 2010

/s/ Timothy M. Bonin

By: Timothy M. Bonin

Treasurer

(Principal Financial Officer)

October 21, 2010