CNI CHARTER FUNDS[SERVICE MARK]
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TABLE OF CONTENTS
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2 Letter to Shareholders
3 Equity Funds Investment Adviser's Report
4 Equity Funds Overview
6 Fixed Income Funds Investment Adviser's Report
7 Fixed Income Funds Overview
12 Statements of Net Assets
36 Statements of Operations
38 Statements of Changes in Net Assets
47 Financial Highlights
50 Notes to Financial Statements
55 Report of Independent Auditors
56 Notice to Shareholders
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CNI CHARTER FUNDS 1
<PAGE>
LETTER TO SHAREHOLDERS
September 30, 2000
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We are pleased to provide you with the CNI Charter Funds Annual Report for
the fiscal period ended September 30, 2000. As you will recall, this was a
period of considerable volatility and change in the financial markets.
To help investors better diversify and tailor their portfolios to reflect
their own unique return objectives and risk tolerances, we introduced six new
mutual funds at the start of 2000. These funds joined the three money market
funds (Government, California Tax Exempt, and Prime) already offered as part of
the CNI Charter Fund family. They are:
FIXED-INCOME FUNDS
Government Bond Fund
Corporate Bond Fund
California Tax Exempt Bond Fund
High Yield Bond Fund
EQUITY FUNDS
Large Cap Value Equity Fund
Large Cap Growth Equity Fund
These Funds, as well as the addition of the Technology Growth Fund, which
commenced offering of shares in October, provide investors with a wide variety
of choices within the CNI Charter Fund Family.
Each of the Funds follow a disciplined investment process that begins with a
thorough assessment of the macroeconomic picture and the financial markets. City
National Investments' in-depth research takes advantage of the most advanced
investment technology, fundamental valuation and quantitative models to
determine the most attractive sectors and securities within each fund's area of
concentration. The final step is to construct precise portfolios that meet the
objectives of the specific fund.
City National Investments' underlying investment philosophy is to pursue the
long-term goals and objectives specified for each of the Funds without being
swayed by short-term trends and fads. With an active yet disciplined style, all
Funds are managed to achieve competitive rates of return consistent with their
respective, prescribed risk parameters. During the past fiscal year, this
approach has served shareholders well in what was a very difficult and tricky
financial environment.
2000 - A TRANSITIONAL YEAR
As we anticipated, 2000 has been a transitional year, both in the real
economy and the financial markets.
Fears of renewed inflation and the concurrent rise in interest rates were the
primary drivers of the markets in the first part of the year. By mid-year,
however, the focus on monetary policy gave way to another potentially bearish
development for the financial markets (equities in particular). Economic growth
began to slow in the wake of six short-term interest rate hikes by the Federal
Reserve in roughly 18 months. Although inevitable, this conclusion to what has
been an unprecedented bull market and period of economic growth gave market
participants real cause for concern.
Corporate earnings disappointments (i.e., profit reports below what Wall
Street analysts expect) appeared in virtually all sectors of the market,
sometimes provoking drastic sell-offs that took individual stocks down 40% or
more in a single day. These emotional reactions to situations that are in fact
quite natural as an economic cycle concludes created some excellent buying
opportunities for longer-term investors.
In stark contrast to the double-digit returns provided by equities during the
last several years of this bull market, the returns for most, if not all, of the
major equity market barometers were negative for the period ending September 30,
2000:
YTD RETURN THROUGH 9/30/00
--------------------------
DOW JONES INDUSTRIAL AVERAGE -6.28%
STANDARD & POOR'S 500 -1.39%
NASDAQ -9.63%
However, negative returns were not universal. As discussed in the Equity Fund
section, several sectors of the domestic equity market performed quite well in
the first nine months of the year, benefiting both of our equity-oriented funds
to some degree. By remaining defensively and cautiously positioned, the Large
Cap Value Equity and Large Cap Growth Equity Funds achieved very competitive
performance numbers that are well in line with their respective investment
strategies.
In sharp contrast to equities, the fixed income markets produced very healthy
returns in the first three quarters of 2000. U.S. government issues (Treasury
securities in particular) performed exceptionally well despite the threat of
inflation that existed earlier in the year. All of the fixed income funds
produced positive numbers for the fiscal period ending September 30, 2000, and
continue to exhibit very competitive returns within their respective categories
as well.
Please read the following pages carefully as they contain important
information on the assets and financial condition of the Funds. If you have any
questions about this report or the CNI Charter Funds, please call your
investment professional or (888) 889-0799.
Thank you for choosing the CNI Charter Funds.
Sincerely,
/S/ VERNON C. KOZLEN /S/ RICHARD A. WEISS
VERNON C. KOZLEN RICHARD A. WEISS
President Chief Investment Officer
CNI Charter Funds City National Investments
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2 CNI CHARTER FUNDS
<PAGE>
INVESTMENT ADVISER'S REPORT
September 30, 2000
EQUITY FUNDS
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All good things eventually must end, and after five very good years for U.S.
equities, 2000 has turned out to be a very challenging year. Whether the great
bull market that characterized the 1990s is really over remains to be seen, but
in the first three quarters of the year investors were confronted by a number of
forces that roiled the markets. The Federal Reserve System did what it was
designed to do, which was to systematically raise short-term interest rates over
an 18-month period in an effort to slow the robust economy and engineer a soft
landing. After mixed signals in the first half of the year, more conclusive
evidence emerged in the third quarter that economic growth had slowed.
Oil and natural gas prices rose dramatically, driven by tightly managed
supplies from oil-producing nations, economic recovery (and correspondingly
higher demand) in Asia, and tensions in the Middle East. When oil prices first
began their sustained rise, many economists argued that the greater
diversification of the world economy would soften the resulting economic impact
when compared to past energy price shocks. However, as energy prices continued
to climb, investors became more concerned and equities responded negatively.
Corporate profits, while still strong by historical standards, slowed in the
latter part of the year. Many companies that failed to meet the high earnings
expectations set by Wall Street analysts saw their stocks punished severely.
These earnings disappointments, and the resultant selloffs, led investors to a
general reevaluation of the price/earnings multiples carried by many growth
stocks. These multiples, which had ballooned in some cases to extraordinarily
high levels, were adjusted downwards, sometimes sharply, as investors became
more skeptical about the long-term prospects for many of the market's leaders.
The technology sector took the brunt of this reevaluation, as investors
returned to more traditional methods for valuing companies, namely earnings
growth rather than sales growth and market position. As of September 30, 2000,
the NASDAQ was down 27% from its high on March 10, demonstrating the dramatic
volatility characteristic of technology stocks. On the other hand, both utility
and health care stocks showed strong positive returns over this same period. In
addition to appearing undervalued (especially relative to the higher-P/E
technology and telecommunication stocks), these two defensively oriented market
sectors tend to show well in the latter phases of an economic cycle.
Accordingly, it should not be surprising that normally counter-cyclical utility
and health-care segments of the market performed so well in this economic and
market environment.
The net result of these forces was a reversal of the performance pattern we
saw over the last five years. For the first three quarters of 2000, value stocks
significantly outperformed growth stocks, while mid and small cap stocks
outpaced large cap stocks.
Despite this difficult market environment, both the LARGE CAP VALUE EQUITY
FUND and LARGE CAP GROWTH EQUITY FUND turned in solid, competitive performance.
From the Fund's inception on January 14, 2000 to September 30, 2000, the Large
Cap Value Equity Fund produced a cumulative total return of -6.30%
(Institutional Class). For the period January 31, 2000 to September 30, 2000,
the Large Cap Value Equity Fund (Institutional Class) returned 5.31%, in line
with the 5.71% return to other value-oriented funds, as measured by the Lipper
Large Cap Value Classification. The Fund turned in performance somewhat below
its benchmark, the S&P 500/Barra Value Index, which was up 7.81% for the same
period. Early in the year, we overweighed utilities and natural resources
sectors. In the middle of the year, with interest rates nearing a peak, we
rotated into overweight positions in financials and consumer stocks, which
should do relatively well in the later stages of the business cycle. While these
sector rotations boosted performance, our investments in individual issues
detracted from performance relative to the Fund's benchmark.
From the Fund's inception on January 14, 2000 to September 30, 2000, the
Large Cap Growth Equity Fund produced a cumulative total return of .99%
(Institutional Class). For the period January 31, 2000 to September 30, 2000,
the Large Cap Growth Equity Fund (Institutional Class) returned -1.26% for the
period, placing it marginally behind the 0.25% return of its benchmark, the S&P
500/Barra Growth Index. The Fund followed the same sector strategy described
above, overweighting utilities and natural resource stocks early in the year and
financial and consumer stock later in the year as the business cycle matured.
Our economic sector allocation had a positive influence on the Fund's return,
while individual security selection had a negative influence.
We urge investors to maintain a long-term investment perspective with their
equity portfolios. By maintaining a highly disciplined approach to risk control
and diversification, the CNI Charter Funds are positioned to deal with the
volatility of the equity markets.
Sincerely,
/S/ RICHARD K. BARNETT, CFA
RICHARD K. BARNETT, CFA
Director of Equities
City National Investments
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CNI CHARTER FUNDS 3
<PAGE>
FUND OVERVIEW
September 30, 2000
LARGE CAP GROWTH EQUITY FUND
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
CNI LARGE CAP GROWTH EQUITY FUND, INSTITUTIONAL CLASS OR CLASS A SHARES,
VERSUS THE S&P 500/BARRA GROWTH INDEX,
AND THE LIPPER LARGE CAP GROWTH FUNDS CLASSIFICATION(*)
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
CNI Large Cap CNI Large Cap Lipper
Growth Equity Growth Equity Large Cap
Fund, Institutional Fund, Class A S&P 500/BARRA Growth Funds
Class Shares Shares Growth Index Classification
------------------- ------------- ------------- --------------
1/31/00 $10,000 $10,000 $10,000 $10,000
9/30/00 9,873 9,852 10,025 10,691
(*) In order to compare the Fund's performance against its benchmark, the
Fund's performance shown above begins at the month-end after the Fund's
inception.
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
SHARE CLASS AVERAGE ANNUAL TOTAL RETURNS
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Institutional Class (1) -6.30%*
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Class A (2) -6.50%+
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(1) Commenced operations on January 14, 2000.
(2) Commenced operations on March 28, 2000.
* Cumulative inception to date.
+ Class A Shares performance for the period prior to March 28, 2000 reflects
the performance of the Fund's Institutional Shares. The performance of the
Institutional Shares has not been adjusted to reflect the higher Rule 12b-1
Fees and expenses applicable to Class A Shares. If it had, performance
would have been lower than that shown.
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TOP TEN HOLDINGS
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% OF
PORTFOLIO
General Electric 5.8
Cisco Systems 5.2
EMC 4.1
Oracle 4.0
Wal-Mart Stores 3.9
Microsoft 3.5
Intel 3.5
Merck 3.5
Abbott Laboratories 2.4
Time Warner 2.2
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TOP FIVE SECTORS
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[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
Technology 46.08
Health Care 17.55
Consumer Staples 11.08
Consumer Cyclicals 8.32
Capital Goods 8.03
Other 8.94
% of Portfolio
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4 CNI CHARTER FUNDS
<PAGE>
FUND OVERVIEW
September 30, 2000
LARGE CAP VALUE EQUITY FUND
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
CNI LARGE CAP VALUE EQUITY FUND, INSTITUTIONAL CLASS OR CLASS A SHARES,
VERSUS THE S&P 500/BARRA VALUE INDEX,
AND THE LIPPER LARGE CAP VALUE FUNDS CLASSIFICATION(*)
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
CNI Large Cap CNI Large Cap Lipper
Value Equity Value Equity Large Cap
Fund, Institutional Fund, Class A S&P 500/BARRA Value Funds
Class Shares Shares Value Index Classification
------------------- ------------- ------------- --------------
1/31/00 $10,000 $10,000 $10,000 $10,000
9/30/00 10,530 10,525 10,781 10,583
(*) In order to compare the Fund's performance against its benchmark, the
Fund's performance shown above begins at the month-end after the Fund's
inception.
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
SHARE CLASS AVERAGE ANNUAL TOTAL RETURNS
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Institutional Class (1) 0.99%*
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Class A (2) 0.94%+
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(1) Commenced operations on January 14, 2000.
(2) Commenced operations on April 13, 2000.
* Cumulative inception to date.
+ Class A Shares performance for the period prior to April 13, 2000 reflects
the performance of the Fund's Institutional Shares. The performance of the
Institutional Shares has not been adjusted to reflect the higher Rule 12b-1
Fees and expenses applicable to Class A Shares. If it had, performance
would have been lower than that shown.
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TOP TEN HOLDINGS
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% OF
PORTFOLIO
Exxon Mobil 4.8
General Electric 3.5
Citigroup 3.1
American Express 3.0
IBM 2.2
Lincoln National 2.1
Viacom 2.1
Verizon Communications 2.1
Minnesota Mining &
Manufacturing 2.0
JP Morgan 1.7
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
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TOP FIVE SECTORS
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Financials 32.78
Energy 11.89
Consumer Staples 10.68
Communication Services 8.57
Capital Goods 8.52
Other 27.56
% of Portfolio
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CNI CHARTER FUNDS 5
<PAGE>
INVESTMENT ADVISER'S REPORT
September 30, 2000
FIXED INCOME FUNDS
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The fixed-income markets have been unusually challenging in 2000, with timing
and selection more important than ever. Bonds started the year on a negative
note with interest rates climbing as the Federal Reserve continued to tighten in
an effort to slow the rate of economic growth to a more sustainable level. The
Federal Open Market Committee (FOMC) continued to raise rates until mid-May, the
high point for interest rates in 2000. Since that peak, interest rates have
declined across the yield curve as investors have focused less on monetary
policy and more on changes in economic growth and price stability.
Money market securities benefited in lock step with the Federal Funds rate
(Fed Funds) adjustments. Through September 30, 2000, Fed Funds rose by 100 basis
points, from 5.5% at the beginning of the year to 6.5%. These adjustments all
occurred in the earlier part of the year, prior to mid-May.
BOND FUNDS
The bond funds have performed well in this ever-changing environment. The
Funds kept a modestly defensive quality and duration profile for the first half
of the year relative to their respective indices. We have since altered our
strategy to a more neutral stance versus each Fund's comparable index.
From the Fund's inception on January 14, 2000 to September 30, 2000, the
GOVERNMENT BOND FUND produced a cumulative total return of 5.64% (Institutional
Class). For the period January 31, 2000 to September 30, 2000, the Government
Bond Fund produced a total return of 5.95% (Institutional Class). For the same
period, the Lehman Intermediate Government Bond Index returned 6.61% and the
Lipper Short-Intermediate U.S. Government Funds was up 5.61%. The Fund currently
has a modest overweight in agency issues that should aid in performance when
compared to the Lehman Intermediate Government Bond Index over the long term due
to its yield enhancement. The relative performance versus the Lehman
Intermediate Government Index underscored our slightly defensive maturity
posture earlier in the year as well as the strength of the Treasury market
versus their agency counterparts. Interestingly, the average fund within our
Lipper peer group fell short of the index by a much larger margin.
From the Fund's inception on January 14, 2000 to September 30, 2000, the
CORPORATE BOND FUND produced a cumulative total return of 5.76% (Institutional
Class). For the period January 31, 2000 to September 30, 2000, the Corporate
Bond Fund produced a total return of 5.94% (Institutional Class). For the same
period, the Lehman Intermediate Credit Index returned 6.44% and the Lipper
Short-Intermediate Investment Grade Debt Funds was up 5.73%. The Fund has
maintained a high quality profile for most of the year. We have started
incorporating higher yielding, investment grade issues into the mix to take
advantage of attractive returns in this sector. Performance for the Fund versus
the Lehman Intermediate Credit Index reflected a shorter average maturity
earlier in the year as well as a conservative disciplined focus on quality
issues, relative to the index. As with the Government Bond Fund, our relative
position within our peer group compares favorably.
From the Fund's inception on January 14, 2000 to September 30, 2000, the
CALIFORNIA TAX EXEMPT BOND FUND produced a cumulative total return of 5.43%
(Institutional Class). For the period January 31, 2000 to September 30, 2000,
the California Tax Exempt Bond Fund produced a total return of 5.05%
(Institutional Class). For the same period, the Lehman Quality Intermediate 1-10
Year Blend Index returned 5.18% and the Lipper California Short-Intermediate
Municipal Debt Funds was up 3.65%. The Fund compared well to its index
comparison due to maturity selection as well as active management of the Fund's
coupon structure. The Fund's relative performance versus the Lehman Quality
Intermediate 1-10 Year Blended Index is very good. Keep in mind that the index
is made up of national issues that consistently yield more than California
bonds. When compared to other California funds within our peer group, relative
performance looks excellent.
From the Fund's inception on January 14, 2000 to September 30, 2000, the HIGH
YIELD BOND FUND produced a cumulative total return of 4.21% (Institutional
Class). For the period January 31, 2000 to September 30, 2000, the High Yield
Bond Fund produced a total return of 4.12% (Institutional Class). For the same
period, the CS First Boston Domestic + High Yield Bond Index returned -0.34% and
the Lipper High Current Yield Funds was -2.04%. The Fund has performed
exceptionally well for 2000, benefiting from both sector selection and timing of
investing cash flows.
STRATEGIC OUTLOOK FOR BOND FUNDS
Our main focus going forward for the non-government funds is to closely
monitor and manage issuer credit quality. As we maintain our strategy of adding
yield to our funds through issue selection, we will endeavor to ensure that the
risk/reward profile is favorable for each fund.
MONEY MARKET FUNDS
The money market funds have performed well in this environment. Like the
bond funds, the money market funds maintained a modestly defensive quality and
maturity profile in the early part of 2000. This strategy has been well rewarded
as reinvestment opportunities have been at higher and higher rates.
STRATEGIC OUTLOOK FOR MONEY MARKET FUNDS
We will keep a vigilant eye on the economic front as well as on the risk
and reward trade-off in the money market environment. Currently, we do not see a
great need to extend average maturities in order to enhance yield. However, with
world events and a new presidential administration, investment opportunities
could always present themselves.
Sincerely,
/S/ RODNEY J. OLEA
RODNEY J. OLEA
Director of Fixed Income
City National Investments
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6 CNI CHARTER FUNDS
<PAGE>
FUND OVERVIEW
September 30, 2000
HIGH YIELD BOND FUND
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
CNI HIGH YIELD BOND FUND, INSTITUTIONAL CLASS OR CLASS A SHARES,
VERSUS THE CS FIRST BOSTON DOMESTIC & HIGH YIELD BOND INDEX,
AND THE LIPPER HIGH CURRENT YIELD FUNDS OBJECTIVE(*)
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
CNI High Yield CNI High Yield CS First Boston Lipper
Bond Fund, Bond Fund, Domestic & High Current
Institutional Class A High Yield Yield Funds
Class Shares Shares Bond Index Objective
-------------- -------------- --------------- ------------
1/31/00 $10,000 $10,000 $10,000 $10,000
9/30/00 10,412 10,386 9,966 9,800
(*) In order to compare the Fund's performance against its benchmark, the
Fund's performance shown above begins at the month-end after the Fund's
inception.
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
SHARE CLASS AVERAGE ANNUAL TOTAL RETURNS
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Institutional Class (1) 4.21%*
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Class A (1) 3.94%*
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(1) Commenced operations on January 14, 2000.
* Cumulative inception to date.
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TOP TEN HOLDINGS*
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% OF
PORTFOLIO
Voicestream Wireless
10.375%, 11/15/09 2.5
Insight Midwest
9.750%, 10/01/09 2.3
Key Energy Group,
Convertible to 25.9740 Shares
5.000%, 09/15/04 2.3
Boyd Gaming 9.500%, 09/15/07 2.1
Nextel Communications
10.940%, 09/15/07 1.9
Huntsman ICI Chemicals
10.125%, 07/01/09 1.8
Pantry 10.250%, 10/15/07 1.8
National Wine & Spirits
10.125%, 01/15/09 1.7
Jordan Industries
10.375%, 08/01/07 1.7
Hard Rock Hotel
9.250%, 04/01/05 1.7
*Excludes cash equivalents.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
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TOP FIVE SECTORS
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Telecommunications 19.95
Cable & Media 15.36
Energy 10.29
Gaming 9.16
Cash 7.36
Other 37.88
% of Portfolio
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CNI CHARTER FUNDS 7
<PAGE>
FUND OVERVIEW
September 30, 2000
CORPORATE BOND FUND
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COMPARISON OF CHANGE IN THE VALUE OF A
$10,000 INVESTMENT IN THE CNI CORPORATE BOND
FUND, INSTITUTIONAL CLASS OR CLASS A SHARES,
VERSUS THE LEHMAN INTERMEDIATE CREDIT INDEX,
AND LIPPER SHORT/INTERMEDIATE INVESTMENT GRADE DEBT FUNDS OBJECTIVE(*)
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
CNI Corporate CNI Corporate Lipper
Bond Fund, Bond Fund, Lehman Short/Intermediate
Institutional Class A Intermediate Investment Grade
Class Shares Shares Credit Index Debt Funds Objective
------------- ------------- ------------ --------------------
1/31/00 $10,000 $10,000 $10,000 $10,000
9/30/00 10,595 10,610 10,644 10,572
(*) In order to compare the Fund's performance against its benchmark, the
Fund's performance shown above begins at the month-end after the Fund's
inception.
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
SHARE CLASS AVERAGE ANNUAL TOTAL RETURNS
--------------------------------------------------------------------------------
Institutional Class (1) 5.76%*
--------------------------------------------------------------------------------
Class A (2) 5.93%+
--------------------------------------------------------------------------------
(1) Commenced operations on January 14, 2000.
(2) Commenced operations on April 13, 2000.
* Cumulative inception to date.
+ Class A Shares performance for the period prior to April 13, 2000 reflects
the performance of the Fund's Institutional Shares. The performance of the
Institutional Shares has not been adjusted to reflect the higher Rule 12b-1
Fees and expenses applicable to Class A Shares. If it had, performance
would have been lower than that shown.
--------------------------------------------------------------------------------
TOP TEN HOLDINGS
--------------------------------------------------------------------------------
% OF
PORTFOLIO
U.S. Treasury Notes
6.000%, 08/15/09 6.5
FNMA 7.250%, 01/15/10 4.5
Union Oil of California,
Ser C, MTN 7.900%, 04/18/08 3.5
Enron 6.725%, 11/17/08 3.1
Caterpillar 9.000%, 04/15/06 2.9
Cit Group Holdings
7.125%, 10/15/04 2.6
First Union 7.100%, 08/15/04 2.6
Banc One 6.400%, 08/01/02 2.6
Washington Mutual Financial
7.250%, 06/15/06 2.6
Bank of America
7.125%, 03/01/09 2.6
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
--------------------------------------------------------------------------------
TOP FIVE SECTORS
--------------------------------------------------------------------------------
Finance 35.00
Industrial 25.00
Utility 11.80
Telephone 11.70
Treasury 8.50
Other 8.00
% of Portfolio
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8 CNI CHARTER FUNDS
<PAGE>
FUND OVERVIEW
September 30, 2000
GOVERNMENT BOND FUND
--------------------------------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A
$10,000 INVESTMENT IN THE CNI GOVERNMENT BOND
FUND, INSTITUTIONAL CLASS OR CLASS A SHARES,
VERSUS THE LEHMAN INTERMEDIATE GOVERNMENT BOND INDEX,
AND THE LIPPER SHORT/INTERMEDIATE U.S. GOVERNMENT BOND FUNDS OBJECTIVE(*)
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
CNI Government CNI Government Lehman Lipper
Bond Fund, Bond Fund, Intermediate Short/Intermediate
Institutional Class A Government U.S. Government
Class Shares Shares Bond Index Bond Funds Objective
------------- ------------- ------------ --------------------
1/31/00 $10,000 $10,000 $10,000 $10,000
9/30/00 10,595 10,610 10,644 10,572
(*) In order to compare the Fund's performance against its benchmark, the
Fund's performance shown above begins at the month-end after the Fund's
inception.
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
SHARE CLASS AVERAGE ANNUAL TOTAL RETURNS
--------------------------------------------------------------------------------
Institutional Class (1) 5.64%*
--------------------------------------------------------------------------------
Class A (2) 5.34%+
--------------------------------------------------------------------------------
(1) Commenced operations on January 14, 2000.
(2) Commenced operations on April 13, 2000.
* Cumulative inception to date.
+ Class A Shares performance for the period prior to April 13, 2000 reflects
the performance of the Fund's Institutional Shares. The performance of the
Institutional Shares has not been adjusted to reflect the higher Rule 12b-1
Fees and expenses applicable to Class A Shares. If it had, performance
would have been lower than that shown.
--------------------------------------------------------------------------------
TOP TEN HOLDINGS
--------------------------------------------------------------------------------
% OF
PORTFOLIO
U.S. Treasury Notes
6.000%, 08/15/09 15.6
FHLB 6.430%, 07/19/04 8.7
FNMA 6.420%, 07/14/08 5.3
FHLMC 6.120, 01/21/03 5.3
FHLB 6.575%, 07/19/02 4.4
FHLB 6.250%, 07/12/02 4.4
FHLMC 7.010, 07/13/06 4.4
U.S. Treasury Notes
5.750%, 08/15/03 3.7
U.S. Treasury Notes
6.625%, 03/31/02 3.6
FHLB 5.480%, 04/09/02 3.5
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
--------------------------------------------------------------------------------
TOP SECTORS
--------------------------------------------------------------------------------
Agency 68.00
Treasury 32.00
% of Portfolio
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CNI CHARTER FUNDS 9
<PAGE>
FUND OVERVIEW
September 30, 2000
CALIFORNIA TAX EXEMPT BOND FUND
--------------------------------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
CNI CALIFORNIA TAX-EXEMPT BOND FUND, INSTITUTIONAL CLASS OR CLASS A SHARES,
VERSUS THE LEHMAN QUALITY INTERMEDIATE 1-10 YEAR MUNICIPAL BLEND INDEX,
AND THE LIPPER CALIFORNIA SHORT/INTERMEDIATE MUNICIPAL OBJECTIVE(*)
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
CNI California CNI California Lehman Quality
Tax-Exempt Tax-Exempt Intermediate California
Bond Fund, Bond Fund, 1-10 Year Short/Intermediate
Institutional Class A Municipal Municipal Debt
Class Shares Shares Blend Index Funds Objective
------------- ------------- ------------ -------------------
1/31/00 $10,000 $10,000 $10,000 $10,000
9/30/00 10,506 10,493 10,518 10,371
(*) In order to compare the Fund's performance against its benchmark, the
Fund's performance shown above begins at the month-end after the Fund's
inception.
Past performance is no indication of future performance.
The Funds' comparative benchmarks do not include the annual operating expenses
incurred by the Fund.
SHARE CLASS AVERAGE ANNUAL TOTAL RETURNS
--------------------------------------------------------------------------------
Institutional Class (1) 5.43%*
--------------------------------------------------------------------------------
Class A (2) 5.32%+
(1) Commenced operations on January 14, 2000.
(2) Commenced operations on April 13, 2000.
* Cumulative inception to date.
+ Class A Shares performance for the period prior to April 13, 2000 reflects
the performance of the Fund's Institutional Shares. The performance of the
Institutional Shares has not been adjusted to reflect the higher Rule 12b-1
Fees and expenses applicable to Class A Shares. If it had, performance
would have been lower than that shown.
--------------------------------------------------------------------------------
TOP TEN HOLDINGS
--------------------------------------------------------------------------------
% OF
PORTFOLIO
Puerto Rico Commonwealth,
Highway & Transportation
Authority, Ser X, RB
5.100%, 07/01/03 5.3
University of California,
Medical Center Project,
RB 5.750%, 07/01/13 4.5
United, Independent School
District Authority, GO
5.625%, 08/15/13 4.4
WestGlenn, Metropolitan District
Authority, GO 6.250%, 12/01/08 4.1
Pomona, Unified School District
Authority, GO 6.150%, 08/01/15 3.9
Illinois State, Toll Highway
Authority, Highway Priority
Project, Ser A, RB 6.375%,
01/01/15 3.6
California State, GO 5.000%,
06/01/11 3.5
California State, Educational
Facilities Authority, Stanford
University Project, Ser P,
RB 5.250%, 12/01/13 3.4
Los Angeles, State Building
Authority, Ser A, RB
5.625%, 05/01/11 3.3
Rancho Mirage, Joint Powers
Authority, Eisenhower Memorial
Hospital Project, COP
7.000%, 03/01/22 3.2
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
--------------------------------------------------------------------------------
TOP FIVE SECTORS
--------------------------------------------------------------------------------
General Obligations 23.60
Utility Revenue 17.48
Transportation Revenue 16.52
Public Facility Revenue 10.89
Pre-Refunded 10.03
Other 21.48
% of Portfolio
--------------------------------------------------------------------------------
10 CNI CHARTER FUNDS
<PAGE>
MONEY MARKET FUNDS
September 30, 2000
PRIME MONEY MARKET FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SINCE
TOTAL RETURN 1 MONTH 3 MONTH YTD 1 YEAR INCEPTION
--------------------------------------------------------------------------------
Institutional Class(1) 0.50% 1.53% 4.34% 5.66% 5.14%*
--------------------------------------------------------------------------------
Class A(1) 0.48% 1.47% 4.17% -- 5.20%+
--------------------------------------------------------------------------------
Class S(1) 0.46% 1.42% 4.02% -- 4.90%+
--------------------------------------------------------------------------------
YIELDS 7 DAY 1 MONTH 3 MONTH YTD 1 YEAR
--------------------------------------------------------------------------------
Institutional Class 6.24% 6.21% 6.21% 5.83% 5.65%
--------------------------------------------------------------------------------
Class A(1) 6.01% 5.98% 5.97% 5.60% --
--------------------------------------------------------------------------------
Class S(1) 5.80% 5.77% 5.76% 5.39% --
--------------------------------------------------------------------------------
Past performance is no indication of future performance.
(1) Institutional, Class A and Class S shares commenced operations on March 23,
2000, October 18, 1999 and October 26, 1999, respectively.
* Annualized since inception.
+ Cumulative inception to date.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
--------------------------------------------------------------------------------
TOP FIVE SECTORS
--------------------------------------------------------------------------------
Commercial Paper 82.69
Corporate Bond 10.33
Certificates of Deposits 2.85
Government Bond 2.37
Registered Investment Companies 1.76
% of Portfolio
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
SINCE
TOTAL RETURN 1 MONTH 3 MONTH YTD 1 YEAR INCEPTION
--------------------------------------------------------------------------------
Institutional Class (1) 0.49% 1.51% -- -- 2.90%+
--------------------------------------------------------------------------------
Class A (1) 0.47% 1.45% 4.13% 5.36% 5.14%*
--------------------------------------------------------------------------------
Class S (1) 0.46% 1.40% 3.97% -- 5.07%+
--------------------------------------------------------------------------------
YIELDS 7 DAY 1 MONTH 3 MONTH YTD 1 YEAR
--------------------------------------------------------------------------------
Institutional Class 6.15% 6.14% 6.13% -- --
--------------------------------------------------------------------------------
Class A 5.91% 5.91% 5.90% 5.53% 5.34%
--------------------------------------------------------------------------------
Class S 5.70% 5.70% 5.69% 5.32% --
--------------------------------------------------------------------------------
Past performance is no indication of future performance.
(1) Institutional, Class A and Class S shares commenced operations on April 3,
2000, June 21, 1999 and October 6, 1999, respectively.
* Annualized since inception.
+ Cumulative inception to date.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
--------------------------------------------------------------------------------
TOP FIVE SECTORS
--------------------------------------------------------------------------------
Repurchase Agreements 36.10
FNMA 22.40
FHLMC 22.20
FHLB 17.20
FFCB 1.30
Other 0.80
% of Portfolio
--------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
--------------------------------------------------------------------------------
TOTAL RETURN 1 MONTH 3 MONTH YTD 1 YEAR INCEPTION
--------------------------------------------------------------------------------
Institutional Class (1) 0.24% 0.78% -- -- 1.64%+
--------------------------------------------------------------------------------
Class A(1) 0.22% 0.73% 2.09% 2.75% 2.62%*
--------------------------------------------------------------------------------
Class S(1) 0.20% 0.68% 1.94% -- 2.29%+
--------------------------------------------------------------------------------
YIELDS 7 DAY 1 MONTH 3 MONTH YTD 1 YEAR
--------------------------------------------------------------------------------
Institutional Class 3.30% 2.94% 3.15% -- --
--------------------------------------------------------------------------------
Class A 3.07% 2.71% 2.91% 2.79% 2.74%
--------------------------------------------------------------------------------
Class S 2.86% 2.50% 2.71% 2.59% --
--------------------------------------------------------------------------------
Past performance is no indication of future performance.
(1) Institutional, Class A and Class S shares commenced operations on April 3,
2000, June 21, 1999 and November 12, 1999, respectively.
* Annualized since inception.
+ Cumulative inception to date.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED PIECE AS FOLLOWS:
--------------------------------------------------------------------------------
TOP FIVE SECTORS
--------------------------------------------------------------------------------
Bank LOC 31.00
Foreign Bank LOC 29.00
TRAN's & RAN's 11.00
State Multi-Family Housing 11.00
Hospital 7.00
Other 11.00
% of Portfolio
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 11
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
LARGE CAP GROWTH EQUITY FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
COMMON STOCKS (97.9%)
AUTOMOTIVE (1.3%)
Ford Motor 6,118 $ 155
ITT Industries 4,000 130
------
TOTAL AUTOMOTIVE 285
======
BANKS (1.5%)
Citigroup 6,400 346
BEAUTY PRODUCTS (1.7%)
Colgate-Palmolive 3,600 170
Procter & Gamble 3,040 204
------
TOTAL BEAUTY PRODUCTS 374
======
BUILDING & CONSTRUCTION (0.6%)
Centex 4,200 135
COMMUNICATIONS EQUIPMENT (4.0%)
Motorola 5,400 152
Nokia OYJ, Cl A, ADR 7,900 314
Nortel Networks 7,000 417
------
TOTAL COMMUNICATIONS EQUIPMENT 883
======
COMPUTERS & SERVICES (17.9%)
Cisco Systems* 20,950 1,157
Compaq Computers 9,800 270
Dell Computer* 14,165 436
EMC* 9,220 914
Gateway* 4,200 196
IBM 2,700 304
Sapient* 2,600 106
Solectron* 7,200 332
Sun Microsystems* 2,200 257
------
TOTAL COMPUTERS & SERVICES 3,972
======
CONSUMER PRODUCTS (0.5%)
Pennzoil-Quaker State 10,000 105
DRUGS (15.2%)
Abbott Laboratories 10,995 523
American Home Products 3,300 187
Biogen* 1,000 61
Bristol-Myers Squibb 4,915 281
Eli Lilly 4,830 392
Johnson & Johnson 3,495 328
Merck 10,355 771
Pfizer 9,008 405
Schering-Plough 9,440 439
------
TOTAL DRUGS 3,387
======
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
ELECTRICAL SERVICES (1.7%)
AES* 5,600 $ 384
ELECTRICAL TECHNOLOGY (0.7%)
Energizer Holdings* 5,979 146
ENTERTAINMENT (4.2%)
Brunswick 6,500 119
Time Warner 6,380 499
Walt Disney 8,200 314
------
TOTAL ENTERTAINMENT 932
======
FINANCIAL SERVICES (1.7%)
MBNA 10,000 385
FOOD, BEVERAGE & TOBACCO (2.6%)
Ralston Purina Group 17,940 425
Unilever NV, ADR 3,105 150
------
TOTAL FOOD, BEVERAGE & TOBACCO 575
======
HOUSEHOLD PRODUCTS (5.8%)
General Electric 22,275 1,285
INTERNET SERVICE PROVIDERS (1.9%)
America Online* 2,300 124
Yahoo* 3,200 291
------
TOTAL INTERNET SERVICE PROVIDERS 415
======
MEDICAL PRODUCTS & SERVICES (2.0%)
Guidant* 3,900 276
Medtronic 3,070 159
------
TOTAL MEDICAL PRODUCTS & SERVICES 435
======
METALS & MINING (0.5%)
Freeport-McMoran Copper &
Gold, Cl B* 12,600 111
PAPER & PAPER PRODUCTS (0.9%)
Kimberly-Clark 3,700 206
PREPACKAGING SOFTWARE (9.4%)
Adobe Systems 800 124
BMC Software* 8,300 159
Computer Associates International 5,410 136
Microsoft* 13,065 788
Oracle* 11,230 884
------
TOTAL PREPACKAGING SOFTWARE 2,091
======
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
12 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
LARGE CAP GROWTH EQUITY FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
PRINTING & PUBLISHING (1.3%)
Viacom, ClB* 5,100 $ 298
PROFESSIONAL SERVICES (0.9%)
Paychex 3,755 197
RETAIL (6.3%)
Home Depot 6,900 366
Sears Roebuck 5,300 172
Wal-Mart Stores 17,975 865
------
TOTAL RETAIL 1,403
======
SEMI-CONDUCTORS/INSTRUMENTS (8.1%)
Applied Materials* 3,520 209
Intel 18,950 788
JDS Uniphase* 3,200 303
Maxim Integrated Products* 1,500 121
Micron Technology* 2,200 101
Texas Instruments 6,030 284
------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 1,806
======
TELEPHONES & TELECOMMUNICATIONS (7.2%)
Lucent Technologies 13,965 427
Qualcomm* 2,900 207
Qwest Communications International* 5,800 279
SBC Communications 3,947 197
Tellabs* 7,600 363
WorldCom* 4,500 137
------
TOTAL TELEPHONES & TELECOMMUNICATIONS 1,610
======
TOTAL COMMON STOCKS
(Cost $20,672) 21,766
======
CASH EQUIVALENTS (2.1%)
Fidelity Institutional Domestic
Money Market Portfolio 342,974 343
SEI Daily Income Trust Prime
Obligation Fund 121,576 121
------
TOTAL CASH EQUIVALENTS
(Cost $464) 464
======
TOTAL INVESTMENTS (100.0%)
(Cost $21,136) 22,230
OTHER ASSETS AND LIABILITIES, NET (0.0%) 1
======
--------------------------------------------------------------------------------
Description Value (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Institutional Class
(unlimited authorization -- $0.01
par value) based on 2,310,328
outstanding shares of
beneficial interest $20,505
Portfolio Shares -- Class A (unlimited
authorization -- $0.01 par value) based
on 63,286 outstanding shares of
beneficial interest 655
Accumulated net realized loss
on investments (23)
Net unrealized appreciation
on investments 1,094
-------
TOTAL NET ASSETS (100.0%) 22,231
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $9.37
-------
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $9.35
-------
*Non-income producing security
ADR -- American Depository Receipt
Cl -- Class
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 13
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
LARGE CAP VALUE EQUITY FUND
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
COMMON STOCKS (97.9%)
AEROSPACE & DEFENSE (0.9%)
Boeing 3,980 $ 251
AIR TRANSPORTATION (1.2%)
Delta Air Lines 4,500 200
Southwest Airlines 6,200 150
------
TOTAL AIR TRANSPORTATION 350
======
AUTOMOTIVE (2.6%)
Ford Motor 10,384 263
General Motors 4,750 309
ITT Industries 6,900 224
------
TOTAL AUTOMOTIVE 796
======
BANKS (11.7%)
Bank of America 8,827 462
Charter One Financial 9,400 229
Chase Manhattan 8,250 381
Citigroup 17,000 919
Comerica 5,300 310
FleetBoston Financial 5,400 211
State Street 3,530 459
Synovus Financial 11,000 233
Wells Fargo 6,530 300
------
TOTAL BANKS 3,504
======
BEAUTY PRODUCTS (0.8%)
Procter & Gamble 3,800 255
CHEMICALS (2.5%)
Air Products & Chemicals 7,400 266
Engelhard 11,700 190
Praxair 4,800 179
Sigma-Aldrich 3,940 130
------
TOTAL CHEMICALS 765
======
COMPUTERS & SERVICES (2.9%)
Compaq Computers 7,600 210
IBM 5,850 658
------
TOTAL COMPUTERS & SERVICES 868
======
DRUGS (3.2%)
Bristol-Myers Squibb 7,175 410
Merck 5,050 376
Pfizer 3,825 172
------
TOTAL DRUGS 958
======
ELECTRICAL SERVICES (3.4%)
AES* 5,040 345
FirstEnergy 9,700 261
Sempra Energy 8,600 179
TXU 6,300 250
------
TOTAL ELECTRICAL SERVICES 1,035
======
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
FINANCIAL SERVICES (7.2%)
Associates First Capital 10,890 $ 414
Capital One Financial 2,900 203
Countrywide Credit Industries 5,600 211
Fannie Mae 2,100 150
Franklin Resources 8,200 364
Freddie Mac 7,330 396
MBNA 10,740 413
------
TOTAL FINANCIAL SERVICES 2,151
======
FOOD, BEVERAGE & TOBACCO (5.8%)
Adolph Coors, Cl B 1,940 123
Anheuser-Busch 10,000 423
Coca-Cola 4,975 274
Conagra Foods 12,100 243
Safeway* 6,000 280
Starbucks* 5,900 236
Unilever NV, ADR 3,400 164
------
TOTAL FOOD, BEVERAGE & TOBACCO 1,743
======
GAS/NATURAL GAS (1.9%)
EL Paso Energy 5,500 339
Nicor 6,100 221
------
TOTAL GAS/NATURAL GAS 560
======
HEALTHCARE SERVICES (0.2%)
UnitedHealth Group 730 72
HOUSEHOLD PRODUCTS (4.8%)
Clorox 6,400 253
General Electric 18,000 1,038
Illinois Tool Works 2,700 151
------
TOTAL HOUSEHOLD PRODUCTS 1,442
======
INSURANCE (6.4%)
Allstate 10,600 368
American International Group 4,083 391
Cigna 1,600 167
Hartford Financial Services 4,800 350
Lincoln National 13,400 645
------
TOTAL INSURANCE 1,921
======
INVESTMENT BANKER/BROKER DEALER (3.9%)
Goldman Sachs Group 2,600 296
JP Morgan 3,150 515
Merrill Lynch 3,260 215
Morgan Stanley Dean Witter 1,600 146
------
TOTAL INVESTMENT BANKER/BROKER DEALER 1,172
======
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
14 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
LARGE CAP VALUE EQUITY FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
MARINE TRANSPORTATION (0.8%)
Carnival, Cl A 10,000 $ 246
OFFICE FURNITURE & FIXTURES (0.8%)
Johnson Controls 4,700 250
OFFICE MACHINE (2.0%)
Minnesota Mining & Manufacturing 6,540 596
PAPER & PAPER PRODUCTS (1.1%)
Georgia-Pacific Group 6,200 146
International Paper 6,475 186
------
TOTAL PAPER & PAPER PRODUCTS 332
======
PERSONAL CREDIT INSTITUTIONS (3.0%)
American Express 14,925 907
PETROLEUM & FUEL PRODUCTS (2.8%)
Anadarko Petroleum 7,098 472
Apache 2,500 148
Rowan* 8,000 232
------
TOTAL PETROLEUM & FUEL PRODUCTS 852
======
PETROLEUM REFINING (9.6%)
Chevron 4,800 409
Enron 2,690 236
Exxon Mobil 16,130 1,438
Phillips Petroleum 3,500 220
Texaco 6,390 335
USX-Marathon Group 8,800 250
------
TOTAL PETROLEUM REFINING 2,888
======
PREPACKAGING SOFTWARE (0.5%)
Computer Associates International 5,625 142
PRINTING & PUBLISHING (4.3%)
Gannett 4,025 213
McGraw-Hill 7,425 472
Viacom, Cl B* 10,605 620
------
TOTAL PRINTING & PUBLISHING 1,305
======
RETAIL (3.7%)
Circuit City Stores 9,300 214
McDonald's 9,135 276
Sears Roebuck 8,700 282
Target 13,160 337
------
TOTAL RETAIL 1,109
======
SEMI-CONDUCTORS/INSTRUMENTS (1.5%)
Intel 11,150 463
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS (8.4%)
Alltel 2,900 $ 151
BellSouth 6,100 246
CenturyTel 8,300 226
Qwest Communications International* 10,462 503
SBC Communications 9,300 465
Sprint (FON Group) 7,100 208
Sprint (PCS Group)* 3,000 105
Verizon Communications 12,809 620
------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,524
======
TOTAL COMMON STOCKS
(Cost $19,250) 29,457
======
CASH EQUIVALENTS (2.1%)
Fidelity Institutional Domestic Money
Market Portfolio 477,491 478
SEI Daily Income Trust Prime
Obligation Fund 164,602 165
------
TOTAL CASH EQUIVALENTS
(Cost $643) 643
======
TOTAL INVESTMENTS (100.0%)
(Cost $19,893) 30,100
OTHER ASSETS AND LIABILITIES, NET (0.0%) (24)
======
NET ASSETS:
Portfolio Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 2,922,419 outstanding
shares of beneficial interest 16,652
Portfolio Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 72,904 outstanding shares of
beneficial interest 740
Accumulated net realized gain
on investments 2,477
Net unrealized appreciation
on investments 10,207
------
TOTAL NET ASSETS (100.0%) 30,076
======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $10.04
======
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $10.04
======
*Non-income producing security
ADR -- American Depository Receipt
Cl -- Class
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 15
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
HIGH YIELD BOND FUND
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
CORPORATE BONDS (87.4%)
BROADCASTING, NEWSPAPERS & ADVERTISING (10.2%)
Adelphia Communications, Ser B
10.500%, 07/15/04 $ 100 $ 100
Century Communications
8.750%, 10/01/07 100 89
Citadel Broadcasting
9.250%, 11/15/08 100 99
Coaxial Communications
10.000%, 08/15/06 100 98
CSC Holdings
7.875%, 12/15/07 100 99
FrontierVision Holdings (B)
10.980%, 09/15/07 150 130
Olympus Communications, Ser B
10.625%, 11/15/06 100 99
Price Communications Wireless, Ser B
9.125%, 12/15/06 100 101
Telewest Communications PLC
9.625%, 10/01/06 100 92
Telewest Communications PLC (B)
8.610%, 10/01/07 150 144
United International Holdings,
Ser B (B) 10.900%, 02/15/08 100 68
------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 1,119
======
BUILDING & CONSTRUCTION (2.6%)
Brand Scaffold Services
10.250%, 02/15/08 200 180
Dayton Superior
13.000%, 06/15/09 100 101
------
TOTAL BUILDING & CONSTRUCTION 281
======
CHEMICALS (1.8%)
Huntsman ICI Chemicals
10.125%, 07/01/09 200 196
COMMUNICATIONS EQUIPMENT (1.5%)
Cumulus Media
10.375%, 07/01/08 200 170
COMPUTERS & SERVICES (1.7%)
Diva Systems (B)
17.710%, 03/01/08 200 90
Unisys
7.875%, 04/01/08 100 92
------
TOTAL COMPUTERS & SERVICES 182
======
CONSUMER PRODUCTS (1.8%)
Jostens, Senior Subordinated Note + 1
Warrant to Buy 1.8890 Shares of
Common Stock @ $0.01/Share (A)
12.750%, 05/01/10 100 103
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Werner Holdings, Ser A
10.000%, 11/15/07 $ 100 $ 96
------
TOTAL CONSUMER PRODUCTS 199
======
CONTAINERS & PACKAGING (1.7%)
Huntsman Packaging (A)
13.000%, 06/01/10 100 89
Norampac
9.500%, 02/01/08 100 101
------
TOTAL CONTAINERS & PACKAGING 190
======
DRUGS (1.7%)
ICN Pharmaceuticals, Ser B
9.250%, 08/15/05 100 98
NBTY, Ser B
8.625%, 09/15/07 100 85
------
TOTAL DRUGS 183
======
ELECTRIC PRODUCTS (1.8%)
Aavid Thermal Technology
12.750%, 02/01/07 100 94
Flextronics International (A)
9.875%, 07/01/10 100 103
------
TOTAL ELECTRIC PRODUCTS 197
======
ENTERTAINMENT (12.0%)
Argosy Gaming
10.750%, 06/01/09 100 105
Autotote (A)
12.500%, 08/15/10 100 101
Boyd Gaming
9.500%, 07/15/07 250 234
Hard Rock Hotel, Ser B
9.250%, 04/01/05 200 187
HMH Properties, Ser B
7.875%, 08/01/08 100 92
Horseshoe Gaming Holdings, Ser B
8.625%, 05/15/09 100 98
Imax
7.875%, 12/01/05 150 136
Mandalay Resort Group (A)
10.250%, 08/01/07 100 103
MGM Grand Mirage
9.750%, 06/01/07 150 155
Park Place Entertainment
9.375%, 02/15/07 100 101
------
TOTAL ENTERTAINMENT 1,312
======
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
16 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
HIGH YIELD BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
FINANCIAL SERVICES-SPECIAL PURPOSE ACQUISITION (1.0%)
DTI Holdings (B)
17.500%, 03/01/08 $ 250 $ 109
FOOD, BEVERAGE & TOBACCO (5.7%)
Aurora Foods, Ser B
9.875%, 02/15/07 100 79
B&G Foods
9.625%, 08/01/07 100 72
National Wine & Spirits
10.125%, 01/15/09 200 190
Pantry
10.250%, 10/15/07 200 193
Premier International Foods
12.000%, 09/01/09 100 83
------
TOTAL FOOD, BEVERAGE & TOBACCO 617
======
GARDEN PRODUCTS (0.9%)
Scotts (A)
8.625%, 01/15/09 100 98
MEDICAL PRODUCTS & SERVICES (1.0%)
Tenet Healthcare (A)
9.250%, 09/01/10 100 104
METALS (2.0%)
Algoma Steel
12.375%, 07/15/05 100 71
National Steel, Ser D
9.875%, 03/01/09 100 59
Oxford Automotive, Ser D
10.125%, 06/15/07 100 88
------
TOTAL METALS 218
======
PAPER & PAPER PRODUCTS (2.5%)
Four M, Ser B
12.000%, 06/01/06 100 95
Riverwood International
10.875%, 04/01/08 200 183
------
TOTAL PAPER & PAPER PRODUCTS 278
======
PETROLEUM & FUEL PRODUCTS (7.0%)
Canadian Forest Oil
8.750%, 09/15/07 100 97
Chesapeake Energy, Ser B
9.625%, 05/01/05 100 99
Cliffs Drilling, Ser B
10.250%, 05/15/03 100 103
Contour Energy (Kelly Oil & Gas)
14.000%, 04/15/03 100 104
Ocean Energy, Ser B
8.875%, 07/15/07 100 102
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Plains Resources, Ser D
10.250%, 03/15/06 $ 100 $ 102
Pride Petroleum Services International
9.375%, 05/01/07 150 153
------
TOTAL PETROLEUM & FUEL PRODUCTS 760
======
PRINTING & PUBLISHING (3.1%)
Jordan Industries, Ser B
10.375%, 08/01/07 200 188
Ziff Davis Media (A)
12.000%, 07/15/10 150 149
------
TOTAL PRINTING & PUBLISHING 337
======
PROFESSIONAL SERVICES (0.9%)
Trico Marine Service, Ser G
8.500%, 08/01/05 100 96
RETAIL (2.6%)
AFC Enterprises
10.250%, 05/15/07 100 101
CKE Restaurants
9.125%, 05/01/09 200 120
Pep Boys, MTN, Ser A
6.710%, 11/03/04 100 65
------
TOTAL RETAIL 286
======
TELEPHONES & TELECOMMUNICATIONS (19.9%)
GCI
9.750%, 08/01/07 100 93
GT Group Telecom (B)
13.250%, 02/01/10 200 86
Hyperion Telecommunication, Ser B (B)
10.860%, 04/15/03 100 83
Insight Midwest
9.750%, 10/01/09 250 252
Metromedia Fiber Network
10.000%, 12/15/09 100 94
Nextel Communications (B)
10.940%, 09/15/07 250 205
Nextel Partners (B)
12.280%, 02/01/09 130 92
Qwest Communications (B)
8.460%, 10/15/07 100 87
Telecorp PCS (A)
10.625%, 07/15/10 100 101
Telecorp PCS (B)
11.630%, 04/15/09 200 136
Teligent, Ser B (B)
13.160%, 03/01/08 200 52
Tritel PCS (B)
11.770%, 05/15/09 250 169
Triton PCS (B)
9.780%, 05/01/08 200 150
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 17
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
HIGH YIELD BOND FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Shares/Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Voicestream Wireless
10.375%, 11/15/09 $ 250 $ 270
Williams Communications Group
10.875%, 10/01/09 200 183
Winstar Communications (A)
12.750%, 04/15/10 100 73
Winstar Communications (A) (B)
13.820%, 04/15/10 149 48
------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,174
======
TEXTILES (0.6%)
Galey & Lord
9.125%, 03/01/08 100 64
UTILITIES (2.6%)
AES
9.375%, 09/15/10 100 102
Calpine
7.625%, 04/15/06 100 97
CMS Energy
7.500%, 01/15/09 100 90
------
TOTAL UTILITIES 289
======
WASTE DISPOSAL (0.8%)
Allied Waste N.A. Ser B
10.000%, 08/01/09 100 87
------
TOTAL CORPORATE BONDS
(Cost $9,825) 9,546
------
CONVERTIBLE BONDS (2.2%)
Key Energy Group, Convertible
to 25.9740 Shares
5.000%, 09/15/04 300 246
------
TOTAL CONVERTIBLE BONDS
(Cost $234) 246
======
WARRANTS (1.2%)
Aavid Thermal Technology,
Expires 02/01/07* 100 1
Dayton Superior, Expires 06/15/09 (A)* 100 2
Diva Systems, Expires 01/01/10 (A)* 200 110
Diva Systems, Expires 03/01/08 (A)* 600 --
DTI Holdings, Expires 03/01/08 (A)* 1,250 --
GT Group Telecom,
Expires 02/01/10 (A)* 200 16
Huntsman Packaging,
Expires 06/01/10 (A)* 100 --
------
TOTAL WARRANTS
(Cost $89) 129
======
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
CASH EQUIVALENTS (7.3%)
Fidelity Institutional Domestic Money
Market Portfolio 374,669 $ 375
SEI Daily Income Trust Prime
Obligation Fund 417,495 417
------
TOTAL CASH EQUIVALENTS
(Cost $792) 792
------
TOTAL INVESTMENTS (98.1%)
(Cost $10,940) 10,713
OTHER ASSETS AND LIABILITIES, NET (1.9%) 207
======
NET ASSETS:
Portfolio Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 1,011,487 outstanding
shares of beneficial interest 10,072
Portfolio Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 106,828 outstanding shares
of beneficial interest 1,070
Accumulated net realized gain
on investments 5
Net unrealized depreciation on investments (227)
------
TOTAL NET ASSETS (100.0%) 10,920
======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $9.76
======
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $9.76
======
*Non-income producing security
MTN -- Medium Term Note
N.A. -- North America
Ser -- Series
PLC -- Public Limited Company
(A) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"accredited investors".
(B) Step bond -- The rate reflected on the Statement of Net Assets is the
effective yield on September 30, 2000. The coupon on a step bond changes on
a specific date.
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
18 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CORPORATE BOND FUND
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (6.5%)
U.S. Treasury Notes
6.000%, 08/15/09 $1,500 $1,506
------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,483) 1,506
======
CORPORATE BONDS (83.9%)
AIR TRANSPORTATION (1.9%)
Federal Express, Ser A2
7.890%, 09/23/08 449 446
AUTOMOTIVE (2.1%)
Daimler Chrysler
7.200%, 09/01/09 500 488
BANKS (15.8%)
Banc One
6.400%, 08/01/02 600 595
Bank of America
7.125%, 05/01/06 100 100
7.125%, 03/01/09 600 591
Chase Manhattan Bank
7.125%, 02/01/07 500 499
7.000%, 06/01/05 200 199
Deutsche Bank
7.500%, 04/25/09 500 501
First Union National Bank
7.125%, 10/15/06 100 98
7.100%, 08/15/04 600 597
Norwest
6.500%, 06/01/05 125 122
Shawmut Bank
8.625%, 02/15/05 100 106
Wells Fargo
7.250%, 08/24/05 250 253
------
TOTAL BANKS 3,661
======
CHEMICALS (0.8%)
Praxair
6.625%, 10/15/07 200 184
ELECTRIC PRODUCTS (0.4%)
Emerson Electric
6.300%, 11/01/05 100 98
ELECTRICAL SERVICES (8.8%)
Con Edison, Ser 92B
7.625%, 03/01/04 100 102
Florida Power
6.000%, 07/01/03 250 245
Georgia Power
6.350%, 08/01/03 100 98
Iowa Electric Light & Power
6.000%, 10/01/08 200 184
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Otter Tail Power
7.250%, 08/01/02 $ 186 $ 187
Pacific Gas & Electric
6.250%, 08/01/03 200 194
Potomac Electric Power
5.625%, 10/15/03 150 145
Public Service Electric & Gas,
Ser 93C 6.125%, 08/01/02 300 296
Southern California Edison Electric
5.875%, 09/01/04 300 286
Southern California Edison Electric,
Ser 93J
5.625%, 10/01/02 100 97
Tampa Electric
6.125%, 05/01/03 100 98
Wisconsin Power & Light
7.600%, 07/01/05 100 103
------
TOTAL ELECTRICAL SERVICES 2,035
======
ENTERTAINMENT (0.4%)
Walt Disney
6.750%, 03/30/06 100 100
FINANCIAL SERVICES (12.3%)
Associates N.A.
5.800%, 04/20/04 500 482
Cit Group Holdings
7.125%, 10/15/04 600 598
Countrywide Funding
8.250%, 07/15/02 60 61
Countrywide Funding, Ser D, MTN
6.280%, 01/15/03 100 98
General Electric Capital, Ser A, MTN
6.650%, 09/03/02 500 499
Norwest Financial
6.125%, 08/01/03 200 196
6.000%, 02/01/04 100 97
Texaco Capital
8.625%, 06/30/10 200 220
Washington Mutual Financial
7.250%, 06/15/06 600 592
------
TOTAL FINANCIAL SERVICES 2,843
======
FOOD, BEVERAGE & TOBACCO (0.4%)
Campbell Soup
5.625%, 09/15/03 100 97
GAS/NATURAL GAS (3.1%)
Enron
6.725%, 11/17/08 775 726
INSURANCE (1.7%)
Aetna Services
6.375%, 08/15/03 150 147
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 19
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CORPORATE BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
American General
6.250%, 03/15/03 $ 250 $ 246
------
TOTAL INSURANCE 393
======
INVESTMENT BANKER/BROKER DEALER (2.1%)
JP Morgan
6.250%, 12/15/05 150 145
Merrill Lynch
7.375%, 05/15/06 100 101
Morgan Stanley Dean Witter
6.375%, 12/15/03 100 98
Morgan Stanley Dean Witter, Ser I, MTN
7.760%, 06/22/04 130 134
------
TOTAL INVESTMENT BANKER/BROKER DEALER 478
======
LEASING & RENTING (1.7%)
International Lease Finance
6.375%, 08/01/02 400 397
MACHINERY (2.9%)
Caterpillar
9.000%, 04/15/06 620 670
MEDICAL PRODUCTS & SERVICES (1.5%)
Baxter International
7.125%, 02/01/07 150 147
Warner-Lambert
6.625%, 09/15/02 200 200
------
TOTAL MEDICAL PRODUCTS & SERVICES 347
======
METAL &ALUMINUM (1.7%)
Alcoa
5.750%, 02/01/01 400 398
PERSONAL CREDIT INSTITUTIONS (4.5%)
Ford Motor Credit
7.875%, 06/15/10 250 253
6.750%, 05/15/05 100 98
6.625%, 06/30/03 100 99
6.375%, 12/15/05 100 96
General Motors Capital, MTN
6.500%, 10/18/02 500 496
------
TOTAL PERSONAL CREDIT INSTITUTIONS 1,042
======
PETROLEUM & FUEL PRODUCTS (3.9%)
Shell Oil
6.700%, 08/15/02 100 101
Union Oil of California, Ser C, MTN
7.900%, 04/18/08 800 808
------
TOTAL PETROLEUM & FUEL PRODUCTS 909
======
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
RAILROADS (1.3%)
Union Pacific
6.125%, 01/15/04 $ 300 $ 289
RETAIL (4.7%)
Gap
6.900%, 09/15/07 200 189
Sears Roebuck Acceptance
6.700%, 11/15/06 100 96
Wal-Mart Stores
6.550%, 08/10/04 500 499
6.375%, 03/01/03 150 149
5.875%, 10/15/05 150 145
------
TOTAL RETAIL 1,078
======
TELEPHONES & TELECOMMUNICATIONS (11.9%)
AT&T
7.000%, 05/15/05 100 100
6.000%, 03/15/09 125 112
5.625%, 03/15/04 150 143
Bell Atlantic of New Jersey
5.875%, 02/01/04 100 96
Bell Telephone of Pennsylvania
6.125%, 03/15/03 100 99
4.750%, 05/01/01 100 99
BellSouth Telecommunications
6.375%, 06/15/04 100 99
6.250%, 05/15/03 300 295
Carolina Telephone & Telegraph
6.125%, 05/01/03 250 245
Chesapeake & Potomac Telephone
of Maryland
6.000%, 05/01/03 200 196
GTE Florida, Ser D
6.250%, 11/15/05 200 193
New York Telephone
6.500%, 03/01/05 250 244
5.625%, 11/01/03 100 96
Pacific Bell Telephone
6.250%, 03/01/05 200 195
U.S. West Communications
6.125%, 11/15/05 350 332
United Telephone of Florida, Ser EE
6.250%, 05/15/03 100 98
United Telephone of Ohio, Ser BB
6.625%, 10/01/02 100 99
------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,741
======
TOTAL CORPORATE BONDS
(Cost $19,435) 19,420
======
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
20 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CORPORATE BOND FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Shares/Face Amount (000) Value (000)
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (6.5%)
FHLMC REMIC, Ser 2068, Cl CA
6.500%, 03/15/26 $ 48 $ 47
FNMA
7.250%, 01/15/10 1,000 1,031
FNMA MTN
6.000%, 07/17/01 425 423
------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,480) 1,501
======
YANKEE BONDS (1.7%)
Nova Scotia
9.375%, 07/15/02 134 140
Ontario
6.000%, 02/21/06 250 241
------
TOTAL YANKEE BONDS
(Cost $377) 381
======
CASH EQUIVALENTS (2.2%)
Fidelity Institutional Domestic
Money Market Portfolio 345,073 345
SEI Daily Income Trust Prime
Obligation Fund 161,596 162
------
TOTAL CASH EQUIVALENTS
(Cost $507) 507
======
TOTAL INVESTMENTS (100.8%)
(Cost $23,282) 23,315
OTHER ASSETS AND LIABILITIES, NET (0.8%) (180)
======
--------------------------------------------------------------------------------
Description Value (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 2,240,818
outstanding shares of beneficial interest $22,686
Portfolio Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 41,849 outstanding shares
of beneficial interest 422
Accumulated net realized loss
on investments (6)
Net unrealized appreciation on investments 33
------
TOTAL NET ASSETS (100.0%) 23,135
======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $10.14
======
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $10.13
======
Cl -- Class
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
N.A. -- North America
REMIC -- Real Estate Mortgage Investment Conduit
Ser -- Series
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 21
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
GOVERNMENT BOND FUND
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (31.9%)
U.S. Treasury Notes
6.625%, 03/31/02 $ 400 $ 403
6.625%, 04/30/02 100 101
6.500%, 10/15/06 150 154
6.250%, 08/31/02 50 50
6.250%, 02/15/03 225 226
6.250%, 02/15/07 200 203
6.125%, 08/15/07 200 202
6.000%, 08/15/09 1,750 1,757
5.750%, 08/15/03 425 423
5.500%, 02/15/08 80 78
------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $3,573) 3,597
======
U.S. GOVERNMENT AGENCY OBLIGATIONS (65.5%)
FFCB
6.100%, 11/19/01 150 149
FHLB
6.910%, 12/28/04 200 199
6.575%, 07/19/02 500 498
6.500%, 04/25/03 100 99
6.430%, 07/19/04 1,000 987
6.250%, 07/12/02 500 496
6.125%, 03/22/06 250 241
5.820%, 08/20/01 300 298
5.810%, 03/26/09 400 374
5.760%, 09/18/02 250 246
5.530%, 04/12/02 400 394
5.480%, 04/09/02 400 394
5.440%, 03/01/02 150 148
5.290%, 01/11/02 250 246
FHLMC
7.010%, 07/13/06 500 493
6.175%, 03/08/04 250 245
6.120%, 01/21/03 600 593
5.560%, 12/30/02 200 196
4.750%, 12/14/01 335 329
FNMA
7.000%, 03/25/20 15 15
7.000%, 01/25/21 58 58
7.000%, 03/25/21 27 27
6.700%, 05/06/02 75 75
FNMA MTN
6.420%, 07/14/08 620 594
------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $7,498) 7,394
======
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
CASH EQUIVALENTS (1.8%)
Fidelity Institutional Domestic Money
Market Portfolio 153,049 $ 153
SEI Daily Income Trust Prime
Obligation Fund 50,238 50
------
TOTAL CASH EQUIVALENTS
(Cost $203) 203
======
TOTAL INVESTMENTS (99.2%)
(Cost $11,274) 11,194
OTHER ASSETS AND LIABILITIES, NET (0.8%) 88
======
NET ASSETS:
Portfolio Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 1,104,996 outstanding
shares of beneficial interest 11,441
Portfolio Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 4,845 outstanding shares
of beneficial interest 49
Accumulated net realized loss
on investments (128)
Net unrealized depreciation
on investments (80)
------
TOTAL NET ASSETS (100.0%) 11,282
======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $10.17
======
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $10.16
======
FFCB -- Federal Farm Credit Bank
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
22 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CALIFORNIA TAX EXEMPT BOND FUND
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS (98.3%)
CALIFORNIA (76.4%)
Anaheim, Convention Center Project,
COP, MBIA Callable 08/01/02 @ 102
5.800%, 08/01/03 $200 $ 206
Berkeley, Ser C, GO, MBIA
Callable 09/01/05 @ 102
5.000%, 09/01/10 95 97
Berkeley, Unified School District,
GO, FGIC
4.375%, 08/01/01 250 251
Beverly Hills, Unified School District
Authority, Ser B, GO
Callable 06/01/08 @ 101
4.700%, 06/01/13 50 49
California State, Department of Water
Reserve Project, Ser J, RB
5.500%, 12/01/01 100 102
California State, Department of Water
Reserve Project, Ser L, RB
Callable 06/01/03 @ 101.50
5.200%, 12/01/06 175 180
California State, Educational Facilities
Authority, Pomona College Project,
RB Callable 02/15/02 @ 102
6.125%, 02/15/08 200 209
California State, Educational Facilities
Authority, Stanford University Project,
Ser P, RB
5.250%, 12/01/13 375 393
California State, GO
Callable 06/01/00 @ 100
5.000%, 06/01/11 400 410
California, Health Facilities Financial
Authority, Catholic Healthcare West
Project, Ser A, RB, MBIA
4.125%, 07/01/02 140 140
Contra Costa, Water District Authority,
Ser G, RB, MBIA
Callable 10/01/04 @ 102
5.700%, 10/01/06 100 107
Delta Diablo, Sanitation District
Authority, Wastewater Facilities
Expansion Project, RB, MBIA
Callable 12/01/02 @ 102
6.100%, 12/01/02 125 130
East Bay, Municipal Utilities District
Authority, Wastewater Treatment
System, RB, AMBAC
Pre-Refunded @ 102 (A)
6.200%, 06/01/04 150 157
East Bay, Municipal Utilities District
Authority, Wastewater Treatment
System, RB, FGIC
4.200%, 06/01/02 75 75
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Long Beach, Water District Authority,
Ser A, RB, MBIA
4.150%, 05/01/03 $100 $ 100
Los Angeles County, Public Works
Finance Authority, Capital Construction
Project, RB Callable 03/01/03 @ 102
4.900%, 03/01/05 100 102
Los Angeles, Harbour Development
Project, Ser C, RB
Callable 11/01/06 @ 101
5.125%, 11/01/11 180 186
Los Angeles, Parking Project,
Ser A, RB, AMBAC
4.100%, 05/01/08 100 97
Los Angeles, Ser A, GO, FGIC
5.250%, 09/01/11 250 263
Los Angeles, Ser C, GO
4.600%, 09/01/03 200 202
Los Angeles, State Building Authority,
Ser A, RB, MBIA
5.625%, 05/01/11 350 379
Metropolitan Water District, Southern
California Waterworks Authority, RB
Pre-Refunded @ 102 (A)
6.500%, 07/01/03 100 104
Modesto, Irrigation District Authority,
Domestic Water Project, Ser D, RB,
AMBAC Callable 09/01/08 @ 101
5.000%, 09/01/12 100 102
Mountain View, Capital Improvement
Authority, City Hall/Community
Theatre Project, RB, MBIA
6.000%, 08/01/01 100 102
Oak Park, Unified School District, GO,
AMBAC Pre-Refunded @ 102 (A)
6.000%, 05/01/04 100 105
Orange County, Local Transportation
Sales Tax Authority, Ser A, RB
5.250%, 02/15/05 300 311
Orange County, Recovery Authority,
Ser A, COP
6.000%, 07/01/06 250 271
Orange County, Water District Authority,
Ser A, COP
4.800%, 08/15/01 100 101
Palm Desert, Financing Authority,
Area 1-A Project, TA, MBIA
6.000%, 04/01/01 20 20
Palm Desert, Financing Authority,
Area 1-A Project, TA, MBIA (B)
6.000%, 04/01/01 80 81
Pasadena, Water District Authority, RB
Callable 07/01/03 @ 102
6.000%, 07/01/13 100 105
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 23
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Pomona, Unified School District
Authority, GO Callable 08/01/01
@ 103
6.150%, 08/01/15 $400 $ 450
Rancho Mirage, Joint Powers
Authority, Eisenhower Memorial
Hospital Project, COP
Pre-Refunded @ 102 (A)
7.000%, 03/01/22 350 370
Sacramento County, Sanitation
District, RB (B)
4.300%, 12/01/00 75 75
Sacramento, Municipal Utilities
District, Ser D, RB, FSA
5.000%, 11/15/02 50 51
Sacramento, Municipal Utilities
District, Ser I, RB, MBIA
Callable 01/01/04 @ 102
5.500%, 01/01/05 100 105
Sacramento, Municipal Utilities
District, Ser Z, RB, FGIC Callable
07/01/01 @ 102
6.250%, 07/01/04 100 104
San Bernardino County, Ser A,
TRAN, MBIA
4.875%, 03/01/03 170 173
San Diego County, Water District
Authority, Ser A, COP
Pre-Refunded @ 102 (A)
6.300%, 05/01/05 200 207
San Diego, Community College Project,
COP, MBIA Callable 12/01/01 @ 102
6.400%, 12/01/02 200 209
San Francisco City & County, Airport
Common International Project,
Ser 15B, RB, FSA
Callable 01/01/08 @ 102
4.600%, 05/01/13 100 98
San Francisco City & County, GO,
MBIA Callable 06/15/01 @ 102
5.250%, 06/15/06 80 82
San Jose, Redevelopment Agency,
Merged Area Project, Ser A, TA, MBIA
Callable 08/01/00 @ 102 (B)
6.000%, 08/01/01 100 101
San Mateo County, Transportation
Authority, Ser A, RB, MBIA
4.100%, 06/01/03 100 100
Santa Barbara, Municipal Improvement
Program, COP, AMBAC
Callable 08/01/02 @ 102
5.400%, 08/01/03 100 103
Santa Barbara, Redevelopment Agency,
Central City Project, Ser A, TA,
AMBAC 4.750%, 03/01/04 100 102
Sonoma County, Detention Facilities
Improvement Program, COP, AMBAC
4.500%, 11/15/03 200 202
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
South Coast, Water District Authority,
GO, AMBAC
Callable 07/01/01 @ 100.375
6.400%, 07/01/04 $175 $ 178
South Coast, Water District Authority,
GO, AMBAC Callable 07/01/01 @ 100.5
6.500%, 07/01/05 100 102
South Orange County, Public Financing
Authority, Foothill Area Project,
Ser C, RB, FGIC
5.125%, 08/15/02 100 102
Stanislaus County, Capital Improvement
Project, Ser A, COP, MBIA
4.625%, 05/01/03 100 101
Turlock, Irrigation District Authority,
Ser A, RB, MBIA
Callable 07/01/02 @ 102
6.000%, 01/01/03 100 104
University of California, Medical
Center Project, RB, AMBAC
Callable 07/01/06 @ 101
5.750%, 07/01/13 500 526
Upland, Water Systems Project, COP,
FGIC Callable 08/01/02 @ 102
6.300%, 08/01/04 100 106
------
TOTAL CALIFORNIA 8,888
======
COLORADO (4.1%)
West Glenn, Metropolitan District
Authority, GO Pre-Refunded @ 100 (A)
6.250%, 12/01/08 450 474
ILLINOIS (3.6%)
Illinois State, Toll Highway Authority,
Highway Priority Project, Ser A, RB
Pre-Refunded @ 102 (A)
6.375%, 01/01/15 400 422
PUERTO RICO (9.8%)
Puerto Rico Commonwealth, Highway
& Transportation Authority,
Ser X, RB, MBIA
5.100%, 07/01/03 600 613
Puerto Rico, Electric Power Authority
Power Project, Ser D, RB, FSA
5.000%, 07/01/05 200 206
Puerto Rico, Public Buildings Authority,
Ser K, RB Pre-Refunded @ 101 (A)
6.875%, 07/01/12 300 318
------
TOTAL PUERTO RICO 1,137
======
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
24 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CALIFORNIA TAX EXEMPT BOND FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
TEXAS (4.4%)
United, Independent School District
Authority, GO Callable 08/15/12 @ 100
5.625%, 08/15/13 $500 $ 517
------
TOTAL MUNICIPAL BONDS
(Cost $11,289) 11,438
======
CASH EQUIVALENT (0.2%)
SEI Tax Exempt Trust California
Tax Exempt Fund 24,928 25
------
TOTAL CASH EQUIVALENT
(Cost $25) 25
======
TOTAL INVESTMENTS (98.5%)
(Cost $11,314) 11,463
OTHER ASSETS AND LIABILITIES, NET (1.5%) 176
======
NET ASSETS:
Portfolio Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 1,139,154 outstanding
shares of beneficial interest 11,469
Portfolio Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 112 outstanding shares
of beneficial interest 1
Undistributed net investment income 1
Accumulated net realized gain
on investments 19
Net unrealized appreciation on investments 149
------
TOTAL NET ASSETS (100.0%) 11,639
======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $10.22
======
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $10.22
======
(A) Pre-Refunded Security -- the maturity date shown is the pre-refunded date.
(B) Security is escrowed to maturity.
AMBAC -- American Municipal Bond Assurance Company
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assistance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
Ser -- Series
TA -- Tax Allocation
TRAN -- Tax & Revenue Anticipation Note
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 25
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
PRIME MONEY MARKET FUND
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
COMMERCIAL PAPER (82.7%)
AUTOMOTIVE (2.7%)
Daimler Chrysler
6.460%, 10/12/00 $11,000 $ 11,000
6.500%, 12/13/00 3,175 3,133
------
TOTAL AUTOMOTIVE 14,133
======
BANKS (6.2%)
Halifax PLC
6.460%, 11/13/00 18,000 17,861
US Bancorp
6.700%, 01/12/01 15,000 15,000
------
TOTAL BANKS 32,861
======
CHEMICAL DIVERSIFIED (2.8%)
E.I. du Pont de Nemours
6.480%, 10/02/00 5,000 4,999
6.490%, 10/04/00 10,000 9,995
------
TOTAL CHEMICAL DIVERSIFIED 14,994
======
CONSULTING SERVICES (0.8%)
Comdisco, MTN
6.450%, 11/13/00 2,000 1,998
5.750%, 02/15/01 2,000 1,987
------
TOTAL CONSULTING SERVICES 3,985
======
COMMUNICATION EQUIPMENT (2.1%)
Motorola
6.470%, 11/28/00 11,000 10,885
COMPUTER LEASING &ELECTRONICS (2.4%)
Hitachi
6.480%, 12/18/00 13,000 12,817
ELECTRICAL SERVICES (1.9%)
Baltimore Gas & Electric
6.500%, 10/04/00 10,000 9,995
ENGINEERING SERVICES (3.4%)
Fluor
6.510%, 10/05/00 7,000 6,995
6.510%, 10/11/00 11,000 10,980
------
TOTAL ENGINEERING SERVICES 17,975
======
FINANCIAL SERVICES (10.1%)
Eagle Funding
6.500%, 10/19/00 15,000 14,951
General Electric Capital
6.651%, 01/17/01 5,000 5,000
6.700%, 01/23/01 15,000 15,000
Giro Multi Funding
6.520%, 10/04/00 5,000 4,997
6.500%, 11/22/00 13,000 12,878
------
TOTAL FINANCIAL SERVICES 52,826
======
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (1.9%)
Unilever NV
6.500%, 10/23/00 $10,000 $ 9,960
GAS/NATURAL GAS (2.5%)
Enron Funding
6.520%, 10/06/00 13,200 13,188
HOUSEHOLD PRODUCTS (1.9%)
Gillette
6.460%, 10/06/00 10,000 9,991
INSURANCE (8.6%)
American General Finance
6.587%, 11/15/00 15,000 15,000
Met Life Funding
6.470%, 10/12/00 15,000 14,970
Prudential Funding
6.511%, 10/05/00 15,000 15,000
------
TOTAL INSURANCE 44,970
======
INVESTMENT BANKER/BROKER DEALER (7.3%)
Bear Stearns
6.550%, 01/05/01 5,000 4,913
Goldman Sachs
6.520%, 01/19/01 5,000 4,900
6.510%, 02/16/01 15,000 14,626
Merrill Lynch
6.540%, 10/03/00 4,000 3,999
Salomon Smith Barney Holdings
6.490%, 11/01/00 10,000 9,944
------
TOTAL INVESTMENT BANKER/BROKER DEALER 38,382
======
LEISURE PRODUCTS (2.9%)
Nike
6.480%, 10/10/00 5,600 5,591
6.470%, 11/14/00 9,800 9,723
------
TOTAL LEISURE PRODUCTS 15,314
======
MACHINERY (1.0%)
Grainger
6.500%, 10/05/00 5,000 4,996
PERSONAL CREDIT INSTITUTIONS (8.0%)
American Express
6.527%, 11/06/00 19,000 19,000
Ford Motor Credit
6.530%, 10/17/00 8,000 8,000
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
26 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
PRIME MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
General Motors Acceptance
6.619%, 10/06/00 $ 8,000 $ 8,000
6.655%, 10/10/00 7,000 7,000
-------
TOTAL PERSONAL CREDIT INSTITUTIONS 42,000
=======
PETROLEUM & FUEL PRODUCTS (3.4%)
Texaco
6.470%, 10/19/00 18,000 18,000
PRINTING & PUBLISHING (3.0%)
McGraw-Hill
6.470%, 11/02/00 15,900 15,809
RETAIL (3.4%)
Hertz
6.490%, 10/06/00 9,000 8,992
6.460%, 11/03/00 9,000 8,947
-------
TOTAL RETAIL 17,939
=======
SPECIAL PURPOSE ENTITY (1.3%)
K2 (USA) LLC
6.540%, 02/05/01 2,449 2,393
6.540%, 02/06/01 4,325 4,224
-------
TOTAL SPECIAL PURPOSE ENTITY 6,617
=======
TELEPHONES & TELECOMMUNICATIONS (5.1%)
AT&T
6.490%, 02/07/01 10,000 9,767
France Telecommunications
6.500%, 10/11/00 4,175 4,167
6.490%, 10/11/00 13,000 12,977
-------
TOTAL TELEPHONES & TELECOMMUNICATIONS 26,911
=======
TOTAL COMMERCIAL PAPER
(Cost $434,548) 434,548
=======
CORPORATE OBLIGATIONS (9.6%)
FINANCIAL SERVICES (0.7%)
Chrysler Financial
5.875%, 02/07/01 2,000 1,994
John Deere Capital
5.850%, 01/15/01 1,500 1,495
-------
TOTAL FINANCIAL SERVICES 3,489
=======
--------------------------------------------------------------------------------
Description Shares/Face Amount (000) Value (000)
--------------------------------------------------------------------------------
INVESTMENT BANKER/BROKER DEALER (7.6%)
Alex Brown (A)
6.740%, 11/21/00 $11,750 $11,759
Bear Stearns, Ser B, MTN (A)
6.770%, 10/07/00 10,000 10,007
6.800%, 10/10/00 1,650 1,650
7.564%, 11/06/00 2,500 2,507
Merrill Lynch, MTN (A)
6.603%, 10/07/00 7,000 7,000
6.590%, 10/07/00 7,000 7,000
-------
TOTAL INVESTMENT BANKER/BROKER DEALER 39,923
=======
TELEPHONES & TELECOMMUNICATIONS (1.3%)
AT&T (A)
6.560%, 10/08/00 7,000 7,000
-------
TOTAL CORPORATE OBLIGATIONS
(Cost $50,412) 50,412
=======
U.S. GOVERNMENT AGENCY OBLIGATIONS (2.4%)
FHLB
6.825%, 05/17/01 1,000 998
6.900%, 08/28/01 10,000 10,000
FHLMC
5.000%, 02/15/01 1,500 1,490
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $12,488) 12,488
=======
CERTIFICATE OF DEPOSIT (3.8%)
CitiCorp
6.480%, 11/20/00 20,000 20,000
-------
TOTAL CERTIFICATE OF DEPOSIT
(Cost $20,000) 20,000
=======
CASH EQUIVALENT (1.8%)
Fidelity Institutional Domestic
Money Market Portfolio 9,288,199 9,288
-------
TOTAL CASH EQUIVALENT
(Cost $9,288) 9,288
=======
TOTAL INVESTMENTS (100.3%)
(Cost $526,736) 526,736
OTHER ASSETS AND LIABILITIES, NET (-0.3%) (1,536)
=======
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 27
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
PRIME MONEY MARKET FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Value (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 201,691,517
outstanding shares of beneficial interest $201,653
Portfolio Shares -- Class A (unlimited
authorization -- $0.01 par value) based
on 251,237,641 outstanding shares of
beneficial interest 251,229
Portfolio Shares -- Class S (unlimited
authorization -- $0.01 par value)
based on 72,290,559 outstanding shares of
beneficial interest 72,288
Undistributed net investment income 30
--------
TOTAL NET ASSETS (100.0%) 525,200
========
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $1.00
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $1.00
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class S $1.00
========
(A) Floating Instrument -- the rate reflected on the Statement of Net Assets is
the rate in effect on September 30, 2000. The date shown is the earlier of
reset date or demand date.
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
LLC -- Limited Liability Company
MTN -- Medium Term Note
PLC -- Public Limited Company
Ser -- Series
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
28 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (63.9%)
FFCB MTN (A)
6.458%, 10/02/00 $ 25,000 $ 25,000
FHLB
6.410%, 10/11/00 50,000 49,911
6.400%, 10/13/00 80,000 79,829
6.405%, 10/20/00 50,000 49,831
5.010%, 11/16/00 7,000 6,989
6.520%, 03/28/01 15,000 14,996
6.500%, 05/15/01 18,000 17,935
6.720%, 05/24/01 10,000 9,561
6.590%, 05/24/01 10,647 10,208
FHLB MTN (A)
6.609%, 10/04/00 35,000 35,000
FHLB MTN
4.875%, 01/26/01 15,000 14,934
FHLMC
6.430%, 10/10/00 81,072 80,942
6.420%, 10/10/00 50,000 49,920
6.415%, 10/17/00 50,000 49,857
6.400%, 10/18/00 50,000 49,849
6.590%, 10/24/00 80,000 79,671
6.644%, 11/02/00 44,149 43,896
6.520%, 05/11/01 18,988 18,224
6.592%, 07/19/01 37,500 35,590
6.900%, 08/28/01 16,835 16,835
FHLMC MTN (A)
6.410%, 12/20/00 52,000 51,986
FHLMC MTN
5.990%, 12/06/00 5,340 5,338
FNMA
6.420%, 10/10/00 23,072 23,035
6.480%, 02/22/01 35,000 34,990
5.625%, 03/15/01 14,995 14,921
6.550%, 03/20/01 33,000 32,995
7.250%, 05/25/01 22,000 22,000
6.500%, 06/06/01 25,000 23,881
6.890%, 08/03/01 13,000 12,999
FNMA MTN (A)
6.460%, 11/22/00 90,500 90,490
6.461%, 11/13/00 95,000 94,990
6.441%, 11/13/00 50,000 49,994
FNMA MTN
5.760%, 10/02/00 22,125 22,125
6.320%, 02/02/01 15,000 14,993
SLMA MTN
5.900%, 12/01/00 16,000 15,997
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,249,712) 1,249,712
==========
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (36.1%)
Goldman Sachs (B)
6.620%, dated 09/29/00, matures
10/02/00, repurchase price
$300,165,500 (collateralized by
various U.S. Government Obligations,
ranging in par value $149,356 -
$14,800,000, 5.500% - 8.500%,
04/01/09 - 10/01/30; with total
market value $306,000,000) $300,000 $ 300,000
Lehman Brothers (B)
6.630%, dated 09/29/00, matures
10/02/00, repurchase price
$35,219,448 (collateralized by
various U.S. Government Agencies
ranging in par value $554,900 -
$306,536,313, 6.500% - 10.250%,
09/15/15 - 09/15/30;
with total value $35,902,427) 35,200 35,200
Paribas (B)
6.650%, dated 09/29/00, matures
10/02/00, repurchase price
$204,113,050 (collateralized by
various U.S. Government Obligations,
ranging in par value $7,926,000 -
$110,000,000, 0.000% - 6.520%,
03/16/01 - 10/15/02; with
total value $208,080,878) 204,000 204,000
UBS Warburg Dillon (B)
6.680%, dated 09/29/00, matures
10/02/00, repurchase price
$67,537,575 (collateralized by
various U.S. Government Obligations,
ranging in par value $70,000 -
$40,600,000, 6.000% - 10.500%,
03/01/14 - 07/01/30; with total
market value $68,852,555) 67,500 67,500
UBS Warburg Dillon (C)
6.560%, dated 09/27/00, matures
10/04/00, repurchase price
$100,127,556 (collateralized by
various U.S. Government Obligations,
ranging in par value $10,405,000 -
$25,000,000, 5.950% - 7.580%,
01/19/06 - 04/01/14; with total
market value $102,002,011) 100,000 100,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $706,700) 706,700
==========
TOTAL INVESTMENTS (100.0%)
(Cost $1,956,412) 1,956,412
OTHER ASSETS AND LIABILITIES, NET (0.0%) 890
==========
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 29
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
GOVERNMENT MONEY MARKET FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Value (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 27,849,464 outstanding
shares of beneficial interest $ 27,849
Portfolio Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 1,887,847,246 outstanding shares
of beneficial interest 1,887,847
Portfolio Shares -- Class S (unlimited
authorization -- $0.01 par value)
based on 41,593,015 outstanding shares
of beneficial interest 41,593
Distributions in excess of net
investment income (2)
Accumulated net realized gain
on investments 15
----------
TOTAL NET ASSETS (100.0%) 1,957,302
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $1.00
==========
Net Asset Value, Offering and Redemption
Net Asset Value, Offering and Redemption
Price Per Share --Class A $1.00
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Class S $1.00
==========
(A) Floating Instrument. The Rate reflected on the Statement of Net Assets is
the rate in effect on September 30, 2000. The date shown is the earlier of
the reset date or the demand date.
(B) Tri-Party Repurchase Agreement
(C) Term Repurchase Agreement
FFCB -- Federal Farm Credit Bank
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
SLMA -- Student Loan Marketing Association
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
30 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS (99.8%)
CALIFORNIA (97.8%)
ABAG, Finance Authority, Bentley
School Project, COP (A) (B) (C)
4.250%, 09/01/22 $ 1,500 $ 1,500
ABAG, Financial Authority For
Non-Profit Corporations, School
of the Sacred Heart,
Ser B, RB (A) (B) (C)
4.350%, 06/01/30 7,900 7,900
Adelanto, Public Utility Authority,
Ser B, RB (A) (B) (C)
4.650%, 11/01/34 5,300 5,300
Alameda-Contra Costa, School
Finance Authority, Capital
Improvement Project,
Ser F, RB (A) (B) (C)
2.550%, 08/01/23 4,400 4,400
Alhambra, Industrial Development
Authority, Sunclipse Project,
RB (A) (B) (C)
4.100%, 05/01/07 1,200 1,200
Anaheim, Housing Authority, Heritage
Village Apartments Project,
Ser A, RB (A) (B) (C)
2.550%, 11/01/07 5,935 5,935
Auburn, Unified School District
Authority, Capital Improvement
Project, GO (A) (B) (C)
4.400%, 12/01/23 1,500 1,500
California State, Economic
Development Financing Authority,
Volk Enterprises Project,
RB (A) (B) (C)
4.450%, 06/01/21 1,000 1,000
California State, Education Facilities
Authority, Point Loma Nazerene
University Project, RB (A) (B) (C)
4.400%, 10/01/29 2,250 2,250
California State, Educational Facilities
Authority, Chapman University
Project, RB (A) (B) (C)
4.300%, 12/01/30 4,000 4,000
California State, Educational Facilities
Authority, Life Chiropractic College
Project, RB (A) (B) (C)
4.700%, 06/01/25 6,500 6,500
California State, Health Facilities
Financing Authority, Adventist Health
System Project, Ser A, RB (A) (B) (C)
2.550%, 08/01/21 2,800 2,800
California State, Health Facilities
Financing Authority, Adventist
Health System Project, Ser A,
RB, MBIA (A) (B)
4.750%, 09/01/28 13,200 13,200
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
California State, Health Facilities
Financing Authority, Adventist
Health System Project,
Ser B, RB (A) (B)
4.750%, 09/01/28 $ 5,900 $ 5,900
California State, Health Facilities
Financing Authority, Scripps
Memorial Hospital Project,
Ser B, RB, MBIA (A) (B)
4.250%, 12/01/15 13,220 13,220
California State, Health Facilities
Financing Authority, Scripps
Memorial Hospital Project,
Ser B, RB, MBIA (A) (B)
4.250%, 10/01/21 1,100 1,100
California State, Kern Country Board
of Education, TRAN
5.000%, 07/03/01 15,000 15,079
California State, School Financing
Authority, Capital Improvement
Project, Ser A, COP (A) (B) (C)
4.650%, 07/01/22 4,150 4,150
California Statewide, Community
Development Authority, Covenant
Retirement Communities Project,
COP (A) (B) (C)
4.450%, 12/01/22 8,500 8,500
California Statewide, Community
Development Authority, Memorial
Health Services Project, COP (A) (B)
4.600%, 10/01/26 3,550 3,550
California, Health Facilities Finance
Authority, Memorial Health Services
Project, RB (A) (B)
4.650%, 10/01/24 7,100 7,100
California, School Cash Reserve
Program, Ser A, RB, AMBAC
5.250%, 07/03/01 8,000 8,057
California, School Facilities Financing
Authority, Improvement Financing
Project, Ser B, COP (A) (B) (C)
4.600%, 07/01/24 1,365 1,365
Corona, Redevelopment Agency,
Crown Point Project,
Ser 85, RB (A) (B) (C)
3.950%, 05/01/15 6,515 6,515
Covina, Multi-Family Housing Authority,
Shadowhills Apartments Project,
Ser A, RB, FNMA (A) (B) (E)
4.500%, 12/01/15 3,100 3,100
Davis, Yolo & Solano Joint School
District Authority, TRAN
4.250%, 08/10/01 7,000 7,006
Escondido, Community Development
Authority, Heritage Housing Project,
RB (A) (B) (C)
2.550%, 06/01/07 5,650 5,650
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 31
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Gaf Tax Exempt Bond Grantor Trust,
Ser GA-7, RB (A) (B) (C)
4.350%, 01/01/06 $ 5,885 $ 5,885
Hemet, Multi-Family Housing Authority,
Sunwest Retirement Project,
Ser A, RB (A) (B) (C)
4.300%, 01/01/25 6,000 6,000
Hillsbrough, Water & Sewer Systems
Project, Ser A, COP (A) (B)
4.450%, 06/01/30 4,900 4,900
Hillsbrough, Water & Sewer Systems
Project, Ser B, COP (A) (B)
3.050%, 06/01/30 8,700 8,700
Huntington Park, Public Financing
Authority, Parking Project,
Ser A, RB (A) (B) (C)
4.750%, 09/01/19 4,165 4,165
Irwindale, Industrial Development
Authority, Toys "R" Us Project,
RB (A) (B) (C)
5.625%, 12/01/19 4,175 4,175
Irvine Ranch, Water District
Consolidated Refunding Bonds,
Ser 1993A, RB (A) (B) (C)
4.500%, 05/01/09 7,000 7,000
Lancaster, Multi-Family Housing
Authority, 20 Street Apartments
Project, Ser C, RB (A) (B) (C)
4.300%, 12/01/26 7,500 7,500
Lancaster, Multi-Family Housing
Authority, Household Bank Project,
Ser A, RB (A) (B) (C)
4.400%, 11/01/29 2,510 2,510
Lancaster, Multi-Family Housing
Authority, The Willow Project,
Ser A, RB (A) (B) (C)
4.400%, 02/01/05 6,000 6,000
Lancaster, Redevelopment Agency,
Multi-Family Housing Authority,
Westwood PK Apartments Project,
Ser K, RB (A) (B) (C)
4.300%, 12/01/07 500 500
Long Beach, Building Finance Authority,
Long Beach Museum Project,
RB (A) (B) (C)
4.350%, 09/01/09 2,060 2,060
Long Beach, Health Facilities Authority,
Memorial Health Services Project,
RB (A) (B)
4.500%, 10/01/16 12,450 12,450
Loomis, Unified Elementary School
District, TRAN
4.125%, 10/01/00 1,225 1,225
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Los Angeles County, Community
Redevelopment Agency, Willowbrook
Project, RB (A) (B) (C)
4.250%, 11/01/15 $ 1,000 $ 1,000
Los Angeles County, Pension
Obligation, Ser A, RB,
AMBAC (A) (B)
4.250%, 06/30/07 600 600
Los Angeles, Community
Redevelopment Agency, CMC
Medical Plaza Partner Project,
RB (A) (B) (C)
4.300%, 12/01/05 800 800
Los Angeles, Community
Redevelopment Agency, Multi-Family
Housing Authority, Promenade
Towers Project, RB (A) (B) (C)
4.200%, 04/01/30 11,000 11,000
Los Angeles, Industrial Development
Authority, Hon Industries Project,
RB (A) (B) (C)
4.350%, 10/01/04 4,400 4,400
Los Angeles, Multi-Family Housing
Authority, Canyon Project,
RB (A) (B) (C)
4.350%, 12/01/10 15,175 15,175
Los Angeles, Multi-Family Housing
Authority, Meadowridge Apartments
Project, RB, FNMA (A) (B) (E)
4.500%, 09/01/18 5,390 5,390
Los Angeles, Multi-Family Housing
Authority, Valencia Village Project,
Ser C, RB (A) (B) (C)
3.150%, 10/01/14 2,900 2,900
Los Angeles, Unified School District
Authority, TRAN
5.250%, 10/03/01 7,145 7,241
Los Angeles, Water & Electric Power
Authority, Ser A, RB (A) (B)
4.200%, 02/01/10 15,000 15,000
Los Angeles, Water & Electric Power
Authority, Ser D, RB (A) (B)
4.450%, 02/01/10 5,000 5,000
M-S-R Public Power Agency, San Juan
Project, Ser D, RB, MBIA (A) (B)
4.400%, 07/01/18 7,400 7,400
Oakland, Capital Equipment Project,
COP (A) (B) (C)
4.400%, 12/01/15 2,390 2,390
Oakland, Joint Powers Financing
Authority, Ser A-2, RB (A) (B)
4.200%, 08/01/21 4,900 4,900
Oakland, Liquidity Facilities Authority,
Assessment Bay Area Project,
RB (A) (B) (C)
5.500%, 12/01/09 1,710 1,710
See accompanying notes to financial statements
--------------------------------------------------------------------------------
32 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Oakland-Alameda County, Coliseum
Project, Ser C, RB (A) (B) (C)
2.550%, 02/01/25 $ 1,200 $ 1,200
Ontario, Multi-Family Housing
Authority, Residential Park Centre
Project, Ser A, RB (A) (B) (C)
4.300%, 08/01/07 200 200
Orange County, Apartment
Development Authority, Radnor/
Aragon Project,
Ser D, RB (A) (B) (C)
5.625%, 08/01/19 3,160 3,160
Orange County, Apartment Development
Authority, Vintage Woods Project,
Issue H, RB (A) (B) (E)
4.300%, 11/15/28 9,000 9,000
Orange County, Improvement Board
District No. 88, RB (A) (B)
4.750%, 09/02/18 10,968 10,968
Orange County, Sanitation District
Authority, COP, AMBAC (A) (B)
4.400%, 08/01/13 15,000 15,000
Oxnard, Community Redevelopment
Agency, Channel Islands Business
Project, RB (A) (B) (C)
4.350%, 07/01/05 4,375 4,375
Palmdale, Community Redevelopment
Agency, Multi-Family Housing
Authority, Manzanita Villas Apartment
Project, RB (A) (B)
4.450%, 07/01/07 3,400 3,400
Panama-Buena Vista, Unified School
District Authority, Capital
Improvements Finance Project,
COP (A) (B) (C)
5.450%, 06/01/24 8,900 8,900
Pasadena, Rose Bowl Improvements
Project, COP (A) (B) (C)
4.250%, 12/01/11 3,200 3,200
4.250%, 12/01/16 9,480 9,480
Pico Riveria, Redevelopment Agency,
Crossroads Plaza Project,
RB (A) (B) (C)
4.000%, 12/01/10 7,200 7,200
Placer Hills, Unified Elementary
School District, TRAN
4.125%, 10/01/00 1,150 1,150
Redwood City, City Hall Project,
COP (A) (B) (C)
4.400%, 07/01/21 2,000 2,000
Riverside County, Housing Authority,
Mountain View Apartments Project,
Ser A, RB (A) (B) (C)
3.350%, 08/01/25 1,100 1,100
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Riverside County, Multi-Family
Housing Authority, De Anza Villas
Project, RB (A) (B) (C)
4.450%, 12/01/16 $2,900 $2,900
Riverside County, Multi-Family Housing
Authority, Polk Apartments Project,
Ser O, RB (A) (B) (C)
5.000%, 12/01/23 7,890 7,890
Riverside, Multi-Family Housing
Authority, Countrywood & IA
Apartments Project,
Ser E, RB (A) (B) (C)
4.360%, 05/01/05 2,560 2,560
Rocklin, Unified School District
Authority, TRAN
4.125%, 10/01/00 1,300 1,300
4.500%, 10/01/01 4,275 4,296
Roseville, Joint Unified School
District Authority, TRAN
4.500%, 10/01/01 2,300 2,311
Sacramento, City Financing Authority,
Solid Waste & Redevelopment
Project, RB, AMBAC
4.500%, 12/01/00 955 956
Salinas, Multi-Family Housing Authority,
Brentwood Gardens Project, RB,
FNMA (A) (B) (E)
4.300%, 05/15/27 3,000 3,000
San Bernardino County, County Center
Refinancing Project, COP (A) (B) (C)
4.300%, 07/01/15 4,700 4,700
San Bernardino County, Industrial
Development Authority, Sandpiper
Inventories Limited Project,
RB (A) (B) (C)
4.150%, 10/01/05 117 117
San Bernardino County, Industrial
Development Authority, Sandpiper
Investments Project, RB (A) (B) (C)
4.150%, 10/01/05 2,683 2,683
San Bernardino County, Multi-Family
Housing Authority, Mountain View
Apartments Project, RB (A) (B) (C)
4.300%, 03/01/27 1,171 1,171
San Bernardino County, Multi-Family
Housing Authority, Reche Canyon
Apartment Project,
Ser B, RB (A) (B) (C)
4.360%, 06/01/05 1,500 1,500
San Bernardino County, Multi-Family
Housing Authority, Rialto Heritage
Project, Ser A, RB (A) (B) (C)
4.350%, 02/01/23 4,330 4,330
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 33
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
San Bernardino County, Multi-Family
Housing Authority, Village Crossing
Project, Ser A, RB (A) (B) (C)
5.500%, 02/01/27 $ 3,700 $ 3,700
San Bernardino County, Multi-Family
Housing Authority, Alta Loma Heritage
Project, Ser A, RB (A) (B) (C)
3.250%, 02/01/23 1,354 1,354
San Bernardino County, Multi-Family
Housing Authority, Indian Knoll
Apartment Project,
Ser A, RB (A) (B) (C)
4.360%, 06/01/05 3,580 3,580
San Bernardino County, Multi-Family
Housing Authority, Mountain View
Project, RB, (A) (B) (C)
4.300%, 03/01/27 939 939
San Bernardino County, Multi-Family
Housing Authority, Parkview Place
Project, Ser A, RB (A) (B) (C)
4.300%, 03/01/27 1,420 1,420
San Diego, Multi-Family Housing
Authority, RB, FNMA (A) (B) (E)
4.300%, 08/01/14 10,000 10,000
San Diego, Multi-Family Housing
Authority, University Town Center
Apartments Project, RB (A) (B) (C)
3.700%, 10/01/15 1,400 1,400
San Diego, Regional Municipal Water
Authority, TECP
3.800%, 11/06/00 7,000 7,000
San Francisco City & County, Multi-
Family Housing Authority, Bayside
Village Project, Ser A, RB (A) (B) (C)
3.450%, 12/01/05 500 500
San Francisco City & County,
Redevelopment Agency, Yerba Buena
Garden Project, RB (A) (B) (C)
2.550%, 09/01/06 765 765
San Jose, Multi-Family Housing Authority,
Timberwood Apartments Project,
RB (A) (B) (C)
2.550%, 02/01/20 6,360 6,360
San Leandro, Unified School District
Authority, TRAN
4.500%, 09/25/01 4,000 4,025
San Marcos, Industrial Development
Authority, Amistar Project,
RB (A) (B) (C)
4.150%, 12/01/05 4,175 4,175
Santa Barbara County, School
Financing Authority, TRAN
5.000%, 06/29/01 5,000 5,026
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Santa Clara County, El Camino Hospital
District Authority, Valley Medical
Center Project, Ser 85B,
RB (A) (B) (C)
4.900%, 08/01/15 $1,155 $1,155
Santa Clara County, Financing Lease
Authority, Facility Replacement
Project, Ser B, RB (A) (B) (C)
4.450%, 11/15/25 3,450 3,450
Santa Clara County, Multi-Family
Housing Authority, Briarwood
Apartments Project, Ser B, RB,
FNMA (A) (B) (E)
4.300%, 12/15/26 2,420 2,420
Simi Valley, Industrial & Economic
Development Authority, Wambold
Furniture Project, RB (A) (B) (C)
4.100%, 12/01/14 2,040 2,040
Simi Valley, Multi-Family Housing
Authority, Lincoln Wood Ranch
Project, RB (A) (B) (C)
2.550%, 06/01/10 2,500 2,500
Simi Valley, Multi-Family Housing
Authority, Ser A, RB (A) (B) (C)
4.300%, 07/01/23 5,215 5,215
Southern California, Metropolitan
Water District Authority, Waterworks
Project, Ser C, RB (A) (B)
4.150%, 07/01/28 1,000 1,000
Southern California, Public Power
Authority, Transmission Project,
Ser 91, RB, AMBAC (A) (B)
4.250%, 07/01/19 9,000 9,000
Three Valleys, Municipal Water
Authority, Miramar Water Treatment
Project, RB (A) (B) (C)
4.400%, 11/01/14 3,000 3,000
Turlock, Irrigation District Authority,
Transmission Project,
Ser A, COP (A) (B) (C)
4.400%, 01/01/26 2,050 2,050
Union City, Multi-Family Housing
Authority, Mission Sierra Project,
RB, FNMA (A) (B) (E)
4.300%, 07/15/29 3,300 3,300
Upland, Multi-Family Housing Authority,
Northwoods 156 Project,
Ser A, RB, FNMA (A) (B) (E)
4.450%, 02/15/30 1,000 1,000
Upland, Multi-Family Housing Authority,
Sunset Ridge & Village Apartments
Project, RB (A) (B) (C)
4.300%, 12/01/29 6,700 6,700
See accompanying notes to financial statements
--------------------------------------------------------------------------------
34 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF NET ASSETS
September 30, 2000
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Face Amount (000) Value (000)
--------------------------------------------------------------------------------
Vacaville, Multi-Family Housing
Authority, Sycamores Apartments
Project, Ser A, RB, FNMA (A) (B) (E)
4.300%, 05/15/29 $ 700 $ 700
West Basin, Municipal Water District
Authority, Phase III Recycled Water
Project, Ser A, COP (A) (B) (C)
4.200%, 08/01/29 10,500 10,500
Western Placer, Unified School District,
TRAN
4.125%, 10/01/00 2,665 2,665
Westminster, Civic Center Refinancing
Program, Ser A, COP, AMBAC (A) (B)
4.400%, 06/01/22 4,100 4,100
Westminster, Redevelopment Agency,
Commercial Redevelopment Project,
TA, AMBAC (A) (B)
4.400%, 08/01/27 13,835 13,835
Yorba Linda, Redevelopment Agency,
Redevelopment Project, Ser A, TA
4.000%, 12/01/00 705 705
--------
TOTAL CALIFORNIA 551,379
========
VIRGIN ISLANDS (2.0%)
Virgin Islands, Water & Power Authority,
Ser A, RB, Pre-refunded @ 102 (D)
7.400%, 07/01/11 11,090 11,547
--------
TOTAL MUNICIPAL BONDS
(Cost $562,926) 562,926
========
TOTAL INVESTMENTS (99.8%)
(Cost $562,926) 562,926
OTHER ASSETS AND LIABILITIES, NET (0.2%) 859
========
--------------------------------------------------------------------------------
Description Value (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 6,825,135 outstanding
shares of beneficial interest $ 6,825
Portfolio Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 549,253,834 outstanding shares
of beneficial interest 549,254
Portfolio Shares -- Class S (unlimited
authorization -- $0.01 par value)
based on 7,723,514 outstanding shares
of beneficial interest 7,723
Distributions in excess of net
investment income (20)
Accumulated net realized gain
on investments 3
-------
TOTAL NET ASSETS (100.0%) 563,785
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $1.00
-------
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $1.00
-------
Net Asset Value, Offering and Redemption
Price Per Share -- Class S $1.00
-------
(A) Floating Rate Security -- the rate reflected on the Statement of Net Assets
is the rate in effect on September 30, 2000.
(B) Put and Demand Feature -- the date reported on the Statement of Net Assets
is the final maturity, not the next reset or put date.
(C) Securities are held in conjunction with a letter of credit from a major
bank or financial institution.
(D) Pre-Refunded Security -- the maturity date shown is the pre-refunded date.
(E) Securities are collateralized under an agreement from FNMA.
AMBAC -- American Municipal Bond Assurance Company
COP -- Certificate of Participation
FNMA -- Federal National Mortgage Association
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
Ser -- Series
TA -- Tax Allocation
TECP -- Tax Exempt Commercial Paper
TRAN -- Tax & Revenue Anticipation Note
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 35
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
LARGE CAP GROWTH LARGE CAP VALUE HIGH YIELD
EQUITY FUND EQUITY FUND BOND FUND
01/14/00(1) to 01/14/00(1) to 01/14/00(1) to
9/30/00 9/30/00 9/30/00
(000) (000) (000)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend $ 84 $ 305 $ --
Interest 30 35 587
-------- -------- --------
Total Income 114 340 587
EXPENSES
Investment Advisory Fees 100 113 43
Waiver of Investment Advisory Fees (17) (22) (16)
Administrative Fees 23 27 8
Waiver of Administrative Fees -- -- --
Shareholder Servicing Fees--Institutional Class 38 45 13
Waiver of Shareholder Servicing Fees--Institutional Class -- -- (1)
Shareholder Servicing Fees--Class A (2) 1 1 3
Waiver of Shareholder Servicing Fees--Class A -- -- --
Shareholder Servicing Fees--Class S (2) -- -- --
Waiver of Shareholder Servicing Fees--Class S -- -- --
Custodian Fees 1 2 1
Professional Fees 3 3 1
Transfer Agent Fees 7 7 7
Printing Fees 2 1 --
Trustee Fees -- -- --
Registration and Filing Fees 6 7 2
Insurance and Other Fees 1 1 --
Organizational Fees -- -- --
-------- -------- --------
Total Expenses 165 185 61
Reduction of Expenses (4) (3) (3) (3)
-------- -------- --------
Net Expenses 162 182 58
-------- -------- --------
NET INVESTMENT INCOME (LOSS) (48) 158 529
-------- -------- --------
Net Realized Gain (Loss) From Security Transactions (23) 2,477 5
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1,423) (2,369) (227)
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATION $ (1,494) $ 266 $ 307
======== ======== ========
<FN>
(1) Commencement of operations.
(2) Includes class specific distribution expenses.
(3) The Fund's tax year changed from October 31 to September 30.
(4) See Note 3.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
36 CNI CHARTER FUNDS
<PAGE>
<TABLE>
<CAPTION>
CALIFORNIA
CORPORATE GOVERNMENT TAX EXEMPT PRIME
BOND FUND BOND FUND BOND FUND MONEY MARKET FUND
01/14/00(1) to 01/14/00(1) to 01/14/00(1) to 11/1/99 to 11/1/98 to
9/30/00 9/30/00 9/30/00 9/30/00(3) 10/31/99
(000) (000) (000) (000) (000)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend $ -- $ -- $ -- $ -- $ --
Interest 968 480 432 19,565 7,411
-------- -------- -------- -------- --------
Total Income 968 480 432 19,565 7,411
EXPENSES
Investment Advisory Fees 57 34 24 769 361
Waiver of Investment Advisory Fees (23) (21) (23) (265) (227)
Administrative Fees 22 12 14 462 182
Waiver of Administrative Fees -- -- -- -- --
Shareholder Servicing Fees--Institutional Class 36 20 22 398 360
Waiver of Shareholder Servicing Fees--Institutional Class -- -- (3) -- --
Shareholder Servicing Fees--Class A (2) -- -- -- 903 --
Waiver of Shareholder Servicing Fees--Class A -- -- -- (337) --
Shareholder Servicing Fees--Class S (2) -- -- -- 210 --
Waiver of Shareholder Servicing Fees--Class S -- -- -- (22) --
Custodian Fees 1 1 1 15 16
Professional Fees 2 1 1 34 54
Transfer Agent Fees 7 7 7 40 18
Printing Fees 1 1 1 22 25
Trustee Fees -- -- -- 6 15
Registration and Filing Fees 6 3 3 67 39
Insurance and Other Fees 1 -- -- 6 37
Organizational Fees -- -- -- 22 29
-------- -------- -------- -------- --------
Total Expenses 110 58 47 2,330 909
Reduction of Expenses (4) (3) (3) (3) (8) --
-------- -------- -------- -------- --------
Net Expenses 107 55 44 2,322 909
-------- -------- -------- -------- --------
NET INVESTMENT INCOME (LOSS) 861 425 388 17,243 6,502
-------- -------- -------- -------- --------
Net Realized Gain (Loss) From Security Transactions (6) (128) 19 -- --
Net Change in Unrealized Appreciation
(Depreciation) on Investments 310 292 236 -- --
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATION $ 1,165 $ 589 $ 643 $ 17,243 $ 6,502
======== ======== ======== ======== ========
<CAPTION>
CALIFORNIA
GOVERNMENT TAX EXEMPT
MONEY MARKET FUND MONEY MARKET FUND
11/1/99 to 6/21/99(1) to 11/1/99 to 6/21/99(1) to
9/30/00(3) 10/31/99 9/30/00(3) 10/31/99
(000) (000) (000) (000)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend $ -- $ -- $ -- $ --
Interest 97,417 25,399 18,145 5,558
-------- -------- -------- --------
Total Income 97,417 25,399 18,145 5,558
EXPENSES
Investment Advisory Fees 4,102 1,276 1,383 508
Waiver of Investment Advisory Fees (1,052) (487) (1,017) (409)
Administrative Fees 1,620 496 797 292
Waiver of Administrative Fees (240) -- (90) --
Shareholder Servicing Fees--Institutional Class 30 -- 18 --
Waiver of Shareholder Servicing Fees--Institutional Class -- -- -- --
Shareholder Servicing Fees--Class A (2) 11,610 3,680 3,785 1,413
Waiver of Shareholder Servicing Fees--Class A (3,806) (981) (1,259) (405)
Shareholder Servicing Fees--Class S (2) 126 -- 17 --
Waiver of Shareholder Servicing Fees--Class S (12) -- (1) --
Custodian Fees 112 29 37 11
Professional Fees 293 71 96 29
Transfer Agent Fees 89 7 54 6
Printing Fees 118 28 43 10
Trustee Fees 20 5 7 2
Registration and Filing Fees 401 39 155 9
Insurance and Other Fees 44 7 12 3
Organizational Fees -- -- -- --
-------- -------- -------- --------
Total Expenses 13,455 4,170 4,037 1,469
Reduction of Expenses (4) (38) -- (38) --
-------- -------- -------- --------
Net Expenses 13,417 4,170 3,999 1,469
-------- -------- -------- --------
NET INVESTMENT INCOME (LOSS) 84,000 21,229 14,146 4,089
-------- -------- -------- --------
Net Realized Gain (Loss) From Security Transactions 15 -- 3 (1)
Net Change in Unrealized Appreciation
(Depreciation) on Investments -- -- -- --
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATION $ 84,015 $ 21,229 $ 14,149 $ 4,088
======== ======== ======== ========
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 37
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1/14/00(1) to
9/30/00
LARGE CAP GROWTH EQUITY FUND (000)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
OPERATIONS:
Net Investment Loss $ (48)
Net Realized Loss from Security Transactions (23)
Net Change in Unrealized Depreciation on Investments (1,423)
--------
Net Decrease in Net Assets Resulting from Operations (1,494)
--------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class --
Class A --
--------
Total Dividends Distributed --
--------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 6,709
Proceeds from In-Kind Transaction (note 8) 21,323
Reinvestment of Distributions --
Cost of Shares Redeemed (4,964)
--------
Increase in Net Assets From Institutional Class Share Transactions 23,068
--------
Class A:
Proceeds from Shares Issued 2,084
Reinvestment of Distributions --
Cost of Shares Redeemed (1,427)
--------
Increase in Net Assets From Class A Share Transactions 657
--------
Net Increase in Net Assets From Capital Share Transactions 23,725
--------
Total Increase in Net Assets 22,231
--------
NET ASSETS:
Beginning of Period --
--------
End of Period $ 22,231
========
Institutional Class:
Shares Issued 683
Shares Issued in Connection With In-Kind Transactions (note 8) 2,132
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed (505)
--------
Total Institutional Class Transactions 2,310
--------
Class A:
Shares Issued 210
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed (147)
--------
Total Class A Transactions 63
--------
Net Increase in Shares Derived from Capital Share Transactions 2,373
========
<FN>
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
38 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1/14/00(1) to
9/30/00
LARGE CAP VALUE EQUITY FUND (000)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
OPERATIONS:
Net Investment Income $ 158
Net Realized Gain from Security Transactions 2,477
Net Change in Unrealized Depreciation on Investments (2,369)
--------
Net Increase in Net Assets Resulting from Operations 266
--------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (157)
Class A (1)
--------
Total Dividends Distributed (158)
--------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 5,025
Proceeds from In-Kind Transaction (note 8) 27,331
Reinvestment of Distributions 22
Cost of Shares Redeemed (3,150)
--------
Increase in Net Assets From Institutional Class Share Transactions 29,228
--------
Class A:
Proceeds from Shares Issued 2,027
Reinvestment of Distributions --
Cost of Shares Redeemed (1,287)
--------
Increase in Net Assets From Class A Share Transactions 740
--------
Net Increase in Net Assets From Capital Share Transactions 29,968
--------
Total Increase in Net Assets 30,076
--------
NET ASSETS:
Beginning of Period --
--------
End of Period $ 30,076
========
Institutional Class:
Shares Issued 518
Shares Issued in Connection With In-Kind Transactions (note 8) 2,733
Shares Issued in Lieu of Cash Distribution 2
Shares Redeemed (331)
--------
Total Institutional Class A Transactions 2,922
--------
Class A:
Shares Issued 201
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed (128)
--------
Total Class A Transactions 73
--------
Net Increase in Shares Derived from Capital Share Transactions 2,995
========
<FN>
(1) Commencement of operations
</FN>
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 39
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1/14/00(1) to
9/30/00
HIGH YIELD BOND FUND (000)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
OPERATIONS:
Net Investment Income $ 529
Net Realized Gain from Security Transactions 5
Net Change in Unrealized Depreciation on Investments (227)
--------
Net Increase in Net Assets Resulting from Operations 307
--------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (475)
Class A (54)
--------
Total Dividends Distributed (529)
--------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 9,784
Reinvestment of Distributions 356
Cost of Shares Redeemed (68)
--------
Increase in Net Assets From Institutional Class Share Transactions 10,072
--------
Class A:
Proceeds from Shares Issued 1,447
Reinvestment of Distributions 54
Cost of Shares Redeemed (431)
--------
Increase in Net Assets From Class A Share Transactions 1,070
--------
Net Increase in Net Assets From Capital Share Transactions 11,142
--------
Total Increase in Net Assets 10,920
--------
NET ASSETS:
Beginning of Period --
--------
End of Period $ 10,920
========
Institutional Class:
Shares Issued 982
Shares Issued in Lieu of Cash Distribution 36
Shares Redeemed (7)
--------
Total Institutional Class Transactions 1,011
--------
Class A:
Shares Issued 145
Shares Issued in Lieu of Cash Distribution 6
Shares Redeemed (44)
--------
Total Class A Transactions 107
--------
Net Increase in Shares Derived from Capital Share Transactions 1,118
========
<FN>
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
40 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1/14/00(1) to
9/30/00
CORPORATE BOND FUND (000)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
OPERATIONS:
Net Investment Income $ 861
Net Realized Loss from Security Transactions (6)
Net Change in Unrealized Appreciation on Investments 310
--------
Net Increase in Net Assets Resulting from Operations 1,165
--------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (858)
Class A (3)
--------
Total Dividends Distributed (861)
--------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 6,805
Proceeds from In-Kind Transaction (note 8) 18,018
Reinvestment of Distributions 147
Cost of Shares Redeemed (2,561)
--------
Increase in Net Assets From Institutional Class Share Transactions 22,409
--------
Class A:
Proceeds from Shares Issued 682
Reinvestment of Distributions --
Cost of Shares Redeemed (260)
--------
Increase in Net Assets From Class A Share Transactions 422
--------
Net Increase in Net Assets From Capital Share Transactions 22,831
--------
Total Increase in Net Assets 23,135
--------
NET ASSETS:
Beginning of Period --
--------
End of Period $ 23,135
========
Institutional Class:
Shares Issued 680
Shares Issued in Connection With In-Kind Transactions (note 8) 1,802
Shares Issued in Lieu of Cash Distribution 15
Shares Redeemed (256)
--------
Total Institutional Class Transactions 2,241
--------
Class A:
Shares Issued 68
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed (26)
--------
Total Class A Transactions 42
--------
Net Increase in Shares Derived from Capital Share Transactions 2,283
========
<FN>
(1) Commencement of operations
</FN>
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 41
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1/14/00(1) to
9/30/00
GOVERNMENT BOND FUND (000)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
OPERATIONS:
Net Investment Income $ 425
Net Realized Loss from Security Transactions (128)
Net Change in Unrealized Appreciation on Investments 292
--------
Net Increase in Net Assets Resulting from Operations 589
--------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (425)
Class A --
--------
Total Dividends Distributed (425)
--------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 2,670
Proceeds from In-Kind Transaction (note 8) 13,321
Reinvestment of Distributions 30
Cost of Shares Redeemed (4,952)
--------
Increase in Net Assets From Institutional Class Share Transactions 11,069
--------
Class A:
Proceeds from Shares Issued 49
Reinvestment of Distributions --
Cost of Shares Redeemed --
--------
Increase in Net Assets From Class A Share Transactions 49
--------
Net Increase in Net Assets From Capital Share Transactions 11,118
--------
Total Increase in Net Assets 11,282
--------
NET ASSETS:
Beginning of Period --
--------
End of Period $ 11,282
========
Institutional Class:
Shares Issued 266
Shares Issued in Connection With In-Kind Transactions (note 8) 1,332
Shares Issued in Lieu of Cash Distribution 3
Shares Redeemed (496)
--------
Total Institutional Class Transactions 1,105
--------
Class A:
Shares Issued 5
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed --
--------
Total Class A Transactions 5
--------
Net Increase in Shares Derived from Capital Share Transactions 1,110
========
<FN>
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
42 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1/14/00(1) to
9/30/00
CALIFORNIA TAX EXEMPT BOND FUND (000)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
OPERATIONS:
Net Investment Income $ 388
Net Realized Gain from Security Transactions 19
Net Change in Unrealized Appreciation on Investments 236
--------
Net Increase in Net Assets Resulting from Operations 643
--------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (387)
Class A --
--------
Total Dividends Distributed (387)
--------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 1,320
Proceeds from In-Kind Transaction (note 8) 13,419
Reinvestment of Distributions --
Cost of Shares Redeemed (3,357)
--------
Increase in Net Assets From Institutional Class Share Transactions 11,382
--------
Class A:
Proceeds from Shares Issued 1
Reinvestment of Distributions --
Cost of Shares Redeemed --
--------
Increase in Net Assets From Class A Share Transactions 1
--------
Net Increase in Net Assets From Capital Share Transactions 11,383
--------
Total Increase in Net Assets 11,639
--------
NET ASSETS:
Beginning of Period --
--------
End of Period $ 11,639
========
Institutional Class:
Shares Issued 131
Shares Issued in Connection With In-Kind Transactions (note 8) 1,342
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed (334)
--------
Total Institutional Class Transactions 1,139
--------
Class A:
Shares Issued --
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed --
--------
Total Class A Transactions --
--------
Net Increase in Shares Derived from Capital Share Transactions 1,139
========
<FN>
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 43
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
11/1/99 to 11/1/98 to
9/30/00 10/31/99
PRIME MONEY MARKET FUND (000) (000)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net Investment Income $ 17,243 $ 6,502
Net Realized Loss from Security Transactions -- --
---------- ----------
Net Increase in Net Assets Resulting from Operations 17,243 6,502
---------- ----------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (8,952) (6,496)
Class A (6,775) (3)
Class S (1,538) --
---------- ----------
Total Dividends Distributed (17,265) (6,499)
---------- ----------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Institutional Class:
Shares Issued 1,416,610 349,856
Shares Issued in Lieu of Cash Distributions 5 5
Shares Redeemed (1,352,579) (345,633)
---------- ----------
Increase in Net Assets From Institutional Class Share Transactions 64,036 4,228
---------- ----------
Class A:
Shares Issued 702,840 5,584
Shares Issued in Lieu of Cash Distribution 2,136 --
Shares Redeemed (458,681) (642)
---------- ----------
Increase in Net Assets From Class A Share Transactions 246,295 4,942
---------- ----------
Class S:
Shares Issued 200,796 562
Shares Issued in Lieu of Cash Distribution -- --
Shares Redeemed (129,068) --
---------- ----------
Increase in Net Assets From Class S Share Transactions 71,728 562
---------- ----------
Net Increase in Net Assets From Capital Share Transactions 382,059 9,732
---------- ----------
Total Increase in Net Assets 382,037 9,735
---------- ----------
NET ASSETS:
Beginning of Period 143,163 133,428
---------- ----------
End of Period $ 525,200 $ 143,163
========== ==========
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
44 CNI CHARTER FUNDS
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
11/1/99 to 6/21/99(1) to
9/30/00 10/31/99
GOVERNMENT MONEY MARKET FUND (000) (000)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net Investment Income $ 84,000 $ 21,229
Net Realized Gain from Security Transactions 15 --
---------- -----------
Net Increase in Net Assets Resulting from Operations 84,015 21,229
---------- -----------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (707) --
Class A (82,391) (21,228)
Class S (904) (1)
---------- -----------
Total Dividends Distributed (84,002) (21,229)
---------- -----------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Institutional Class:
Shares Issued 73,308 --
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed (45,459) --
---------- -----------
Increase in Net Assets From Institutional Class Share Transactions 27,849 --
---------- -----------
Class A:
Shares Issued 3,937,923 2,596,166
Shares Issued in Lieu of Cash Distribution 55,346 14,931
Shares Redeemed (3,617,559) (1,098,960)
---------- -----------
Increase in Net Assets From Class A Share Transactions 375,710 1,512,137
---------- -----------
Class S:
Shares Issued 110,214 911
Shares Issued in Lieu of Cash Distribution -- --
Shares Redeemed (69,532) --
---------- -----------
Increase in Net Assets From Class S Share Transactions 40,682 911
---------- -----------
Net Increase in Net Assets From Capital Share Transactions 444,241 1,513,048
---------- -----------
Total Increase in Net Assets 444,254 1,513,048
---------- -----------
NET ASSETS:
Beginning of Period 1,513,048 --
---------- -----------
End of Period $1,957,302 $ 1,513,048
========== ===========
<FN>
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 45
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
11/1/99 to 6/21/99(1) to
9/30/00 10/31/99
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (000) (000)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net Investment Income $ 14,146 $ 4,089
Net Realized Gain (Loss) from Security Transactions 3 (1)
---------- -----------
Net Increase in Net Assets Resulting from Operations 14,149 4,088
---------- -----------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (234) --
Class A (13,877) (4,083)
Class S (60) --
---------- -----------
Total Dividends Distributed (14,171) (4,083)
---------- -----------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Institutional Class:
Shares Issued 55,566 --
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed (48,741) --
---------- -----------
Increase in Net Assets From Institutional Class Share Transactions 6,825 --
---------- -----------
Class A:
Shares Issued 1,174,490 1,098,793
Shares Issued in Lieu of Cash Distribution 10,270 2,980
Shares Redeemed (1,168,745) (568,534)
---------- -----------
Increase in Net Assets From Class A Share Transactions 16,015 533,239
---------- -----------
Class S:
Shares Issued 39,260 --
Shares Issued in Lieu of Cash Distribution -- --
Shares Redeemed (31,537) --
---------- -----------
Increase in Net Assets From Class S Share Transactions 7,723 --
---------- -----------
Net Increase in Net Assets From Capital Share Transactions 30,563 533,239
---------- -----------
Total Increase in Net Assets 30,541 533,244
---------- -----------
NET ASSETS:
Beginning of Period 533,244 --
---------- -----------
End of Period $ 563,785 $ 533,244
========== ===========
<FN>
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
46 CNI CHARTER FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Net
Net Realized and Net
Asset Net Unrealized Distributions Asset
Value Investment Gains/(Losses) from Net Value
Beginning Income/ on Investment End Total
of Period (Loss) Securities Income of Period Return
--------- ---------- ------------- ------------ --------- -------
<S> <C> <C> <C> <C> <C> <C>
LARGE CAP GROWTH EQUITY FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(1) $10.00 (0.02) (0.61) -- $ 9.37 (6.30)%
CLASS A
For the period ended September 30,:
2000(2) $10.70 (0.01) (1.34) -- $ 9.35 (12.62)%
LARGE CAP VALUE EQUITY FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(3) $10.00 0.06 0.04 (0.06) $10.04 0.99%
CLASS A
For the period ended September 30,:
2000(4) $ 9.55 0.03 0.49 (0.03) $10.04 5.48%
HIGH YIELD BOND FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(5) $10.00 0.64 (0.24) (0.64) $ 9.76 4.21%
CLASS A
For the period ended September 30,:
2000(6) $10.00 0.62 (0.24) (0.62) $ 9.76 3.94%
<CAPTION>
Ratio
Net Ratio of Expenses
Assets Ratio of Net to Average
End of Expenses Income Net Assets Portfolio
of Period to Average to Average (Excluding Turnover
(000) Net Assets(7) Net Assets(7) Waivers)(7) Rate
--------- -------------- ------------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
LARGE CAP GROWTH EQUITY FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(1) $21,639 1.05% (0.31)% 1.16% 51%
CLASS A
For the period ended September 30,:
2000(2) $ 592 1.30% (0.56)% 1.41% 51%
LARGE CAP VALUE EQUITY FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(3) $29,344 1.00% 0.87% 1.12% 38%
CLASS A
For the period ended September 30,:
2000(4) $ 732 1.25% 0.62% 1.37% 38%
HIGH YIELD BOND FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(5) $ 9,877 1.00% 9.41% 1.31% 5%
CLASS A
For the period ended September 30,:
2000(6) $ 1,043 1.30% 9.11% 1.61% 5%
<FN>
(1) LARGE CAP GROWTH EQUITY FUND INSTITUTIONAL CLASS SHARES COMMENCED
OPERATIONS ON JANUARY 14, 2000.
(2) LARGE CAP GROWTH EQUITY FUND CLASS A SHARES COMMENCED OPERATIONS ON
MARCH 28, 2000.
(3) LARGE CAP VALUE EQUITY FUND INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS
ON JANUARY 14, 2000.
(4) LARGE CAP VALUE EQUITY FUND CLASS A SHARES COMMENCED OPERATIONS ON
APRIL 13, 2000.
(5) HIGH YIELD BOND FUND INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON
JANUARY 14, 2000.
(6) HIGH YIELD BOND FUND CLASS A SHARES COMMENCED OPERATIONS ON
JANUARY 14, 2000.
(7) ANNUALIZED.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 47
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Net
Net Realized and Net
Asset Unrealized Distributions Asset
Value Net Gains/(Losses) from Net Value
Beginning Investment on Investment End Total
of Period Income Securities Income of Period Return
--------- ---------- ------------- ------------ --------- -------
<S> <C> <C> <C> <C> <C> <C>
CORPORATE BOND FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(1) $10.00 0.42 $0.14 $(0.42) $10.14 5.76%
CLASS A
For the period ended September 30,:
2000(2) $10.06 0.31 $0.07 $(0.31) $10.13 3.81%
GOVERNMENT BOND FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(3) $10.00 0.38 $0.17 $(0.38) $10.17 5.64%
CLASS A
For the period ended September 30,:
2000(4) $10.06 0.23 $0.10 $(0.23) $10.16 3.37%
CALIFORNIA TAX EXEMPT BOND FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(5) $10.00 0.32 $0.22 $(0.32) $10.22 5.43%
CLASS A
For the period ended September 30,:
2000(6) $10.10 0.20 $0.12 $(0.20) $10.22 3.20%
<CAPTION>
Ratio
Net Ratio of Expenses
Assets Ratio of Net to Average
End of Expenses Income Net Assets Portfolio
of Period to Average to Average (Excluding Turnover
(000) Net Assets(7) Net Assets(7) Waivers)(7) Rate
--------- -------------- ------------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
CORPORATE BOND FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(1) $22,711 0.75% 6.09% 0.91% 6%
CLASS A
For the period ended September 30,:
2000(2) $ 424 1.00% 5.84% 1.16% 6%
GOVERNMENT BOND FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(3) $11,233 0.70% 5.49% 0.97% 21%
CLASS A
For the period ended September 30,:
2000(4) $ 49 0.95% 5.24% 1.22% 21%
CALIFORNIA TAX EXEMPT BOND FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(5) $11,638 0.50% 4.50% 0.79% 49%
CLASS A
For the period ended September 30,:
2000(6) $ 1 0.75% 4.25% 1.04% 49%
<FN>
(1) CORPORATE BOND FUND INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON
JANUARY 14, 2000.
(2) CORPORATE BOND FUND CLASS A SHARES COMMENCED OPERATIONS ON APRIL 13, 2000.
(3) GOVERNMENT BOND FUND INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON
JANUARY 14, 2000.
(4) GOVERNMENT BOND FUND CLASS A SHARES COMMENCED OPERATIONS ON APRIL 13, 2000.
(5) CALIFORNIA TAX EXEMPT BOND INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS
ON JANUARY 14, 2000.
(6) CALIFORNIA TAX EXEMPT BOND FUND CLASS A SHARES COMMENCED OPERATIONS ON
APRIL 13, 2000.
(7) ANNUALIZED.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
48 CNI CHARTER FUNDS
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
Ratio
Net Net Net Ratio of Expenses
Asset Distributions Asset Assets Ratio of Net to Average
Value Net from Net Value End of Expenses Income Net Assets
Beginning Investment Investment End Total of Period to Average to Average (Excluding
of Period Income Income of Period Return (000) Net Assets(10) Net Assets(10) Waivers)(10)
--------- ---------- ------------- --------- ------ --------- -------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PRIME MONEY MARKET FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000 $1.00 0.051 (0.051) $1.00 5.24% $ 201,688 0.63% 5.62%+ 0.71%
For the period ended October 31,:
1999 1.00 0.045 (0.045) 1.00 4.61 137,659 0.63 4.51 0.79
1998(1) 1.00 0.029 (0.029) 1.00 3.11 133,428 0.63 4.99 0.78
CLASS A
For the period ended September 30,:
2000 $1.00 0.049 (0.049) $1.00 5.03% $ 251,225 0.85% 5.61%+ 1.21%
For the period ended October 31,:
1999(2) 1.00 0.002 (0.002) 1.00 0.18 4,942 0.85 4.62 1.30
CLASS S
For the period ended September 30,:
2000 $1.00 0.047 (0.047) $1.00 4.83% $ 72,287 1.05% 5.47%+ 1.21%
For the period ended October 31,:
1999(3) 1.00 0.001 (0.001) 1.00 0.07 562 1.05 4.42 1.30
GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(4) $1.00 0.029 (0.029) $1.00 2.90% $ 27,849 0.63% 5.84% 0.68%
CLASS A
For the period ended September 30,:
2000 $1.00 0.049 (0.049) $1.00 4.96% $1,887,860 0.85% 5.32% 1.18%
For the period ended October 31,:
1999(5) 1.00 0.016 (0.016) 1.00 1.58 1,512,137 0.85 4.33 1.15
CLASS S
For the period ended September 30,:
2000 $1.00 0.047 (0.047) $1.00 4.77% $ 41,593 1.05% 5.39% 1.18%
For the period ended October 31,:
1999(6) 1.00 0.003 (0.003) 1.00 0.30 911 1.05 4.30 1.15
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
INSTITUTIONAL CLASS
For the period ended September 30,:
2000(7) $1.00 0.016 (0.016) $1.00 1.64% $ 6,825 0.55% 3.29% 0.74%
CLASS A
For the period ended September 30,:
2000 $1.00 0.025 (0.025) $1.00 2.55% $ 549,237 0.78% 2.74% 1.24%
For the period ended October 31,:
1999(8) 1.00 0.008 (0.008) 1.00 0.79 533,244 0.78 2.17 1.21
CLASS S
For the period ended September 30,:
2000(9) $1.00 0.023 (0.023) $1.00 2.30% $ 7,723 0.98% 2.69% 1.24%
<FN>
+ RATIOS REFLECT THE IMPACT OF THE INITIAL LOW LEVEL OF AVERAGE NET ASSETS
ASSOCIATED WITH COMMENCEMENT OF OPERATIONS AND THE EFFECTS OF
ANNUALIZATION.
(1) PRIME MONEY MARKET FUND INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON
MARCH 23, 1998.
(2) PRIME MONEY MARKET FUND CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 18,
1999.
(3) PRIME MONEY MARKET FUND CLASS S SHARES COMMENCED OPERATIONS ON OCTOBER 26,
1999.
(4) GOVERNMENT MONEY MARKET FUND INSTITUTIONAL CLASS SHARES COMMENCED
OPERATIONS ON APRIL 3, 2000.
(5) GOVERNMENT MONEY MARKET FUND CLASS A SHARES COMMENCED OPERATIONS ON JUNE
21, 1999.
(6) GOVERNMENT MONEY MARKET FUND CLASS S SHARES COMMENCED OPERATIONS ON OCTOBER
6, 1999.
(7) CALIFORNIA TAX EXEMPT MONEY MARKET FUND INSTITUTIONAL CLASS SHARES
COMMENCED OPERATIONS ON APRIL 3, 2000.
(8) CALIFORNIA TAX EXEMPT MONEY MARKET FUND CLASS A SHARES COMMENCED OPERATIONS
ON JUNE 21, 1999.
(9) CALIFORNIA TAX EXEMPT MONEY MARKET FUND CLASS S SHARES COMMENCED OPERATIONS
ON NOVEMBER 12, 1999.
(10) ANNUALIZED.
</FN>
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 49
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
--------------------------------------------------------------------------------
1. ORGANIZATION:
THE CNI CHARTER FUNDS, a Delaware business trust (the "Trust"), formerly named
the Berkeley Funds, is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company with nine portfolios. The
financial statements included herein are those of the Large Cap Growth Equity
Fund and Large Cap Value Equity Fund (collectively the "Equity Funds"), High
Yield Bond Fund, Corporate Bond Fund, Government Bond Fund, California Tax
Exempt Bond Fund, (collectively the "Fixed Income Funds"), Prime Money Market
Fund (formerly, the Money Market Fund), Government Money Market Fund (formerly,
the Government Fund), California Tax Exempt Money Market Fund (formerly, the
California Tax Exempt Fund) (collectively the "Money Market Funds"), (each a
"Fund", collectively, the "Funds"). The Trust's current sponsor, City National
Bank, acquired the Trust's former sponsor, North American Trust Company, on
December 31, 1998. Following the acquisition, the Trust's name was changed to
the CNI Charter Funds. The Funds' prospectuses provide a description of each
Fund's investment objectives, policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Funds.
SECURITY VALUATION -- Investment securities of the Money Market Funds are stated
at amortized cost which approximates market value. Under this valuation method,
purchase discounts and premiums are accreted and amortized ratably to maturity
and are included in interest income.
Investment securities of the Fixed Income and Equity Funds, which are listed on
a securities exchange for which market quotations are available, are valued by
independent pricing services at the last quoted sales price for such securities
on each business day. If there is no such reported sale, those securities are
valued at the mean between last available bid and ask price. Unlisted securities
(of which there were none on September 30, 2000) for which market quotations are
not readily available are valued at fair value as determined in good faith by or
under the direction of the Trust's Board of Trustees. Debt obligations with
sixty days or less remaining until maturity may be valued at their amortized
cost.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a regulated
investment company by complying with the appropriate provisions of the Internal
Revenue Code of 1986, as amended. Accordingly, no provision for Federal income
taxes is required.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are accounted
for on the date the security is purchased or sold (trade date). Interest income
is recognized on the accrual basis and dividend income is recognized on the
ex-dividend date. Purchase discounts and premiums on securities held by the
Funds are accreted and amortized to maturity using the scientific interest
method, which approximates the effective interest method. For securities sold,
realized gains or losses are determined on the basis of the identified cost of
the securities delivered.
CLASSES -- Class-specific expenses are borne by that class. Income, non
class-specific expenses, and realized and unrealized gains/losses are allocated
to the respective class on the basis of relative net asset value each day.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income are
declared daily and paid to shareholders monthly for the Money Market and Fixed
Income Funds. Distributions from net investment income are declared and paid
quarterly for the Equity Funds. Any net realized capital gains are distributed
to shareholders at least annually. Distributions from net investment income
--------------------------------------------------------------------------------
50 CNI CHARTER FUNDS
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
--------------------------------------------------------------------------------
and net realized capital gains are determined in accordance with U.S. Federal
income tax regulations, which may differ from those amounts determined under
generally accepted accounting principles. These book/tax differences may be
temporary or permanent in nature. To the extent these differences are permanent,
they are charged or credited to paid-in-capital or accumulated net realized
gain, as appropriate, in the period that the differences arise. Accordingly, the
following permanent differences have been reclassified to/from the following
accounts during the fiscal year ended September 30, 2000:
Undistributed
Accumulated Net Investment
Paid-in-Capital Realized Gain Income
Funds (000) (000) (000)
-------- --------------- ------------- --------------
Prime Money
Market Fund $(16) $-- $16
Large Cap Growth
Equity Fund (48) -- 48
ORGANIZATIONAL COSTS -- Organizational costs of the Prime Money Market Fund have
been capitalized and are being amortized over a period of sixty months. In the
event any of the initial shares of the Fund are redeemed by any holder thereof
during the period that the Fund is amortizing its organizational costs, the
redemption proceeds payable to the holder thereof by the Fund will be reduced by
the unamortized organizational costs in the same ratio as the number of initial
shares being redeemed bears to the number of initial shares outstanding at the
time of redemption.
USE OF ESTIMATES -- The preparation of financial statements, in conformity with
accounting principles generally accepted in the United States, requires
management to make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
3. ADMINISTRATION, TRANSFER AGENT DISTRIBUTION AND SHAREHOLDER SERVICES
AGREEMENTS:
Pursuant to an administration agreement dated April 1, 1999 (the "Agreement"),
SEI Investments Mutual Funds Services ("SIMFS"), a wholly owned subsidiary of
SEIInvestments Company, acts as the Trust's Administrator. Under the terms of
the Agreement, SEIis entitled to receive an annual fee of 0.15% of the average
daily net assets of the Prime Money Market Fund, 0.101% of the average daily net
assets of the Government Money Market Fund, 0.155% of the average daily net
assets of the California Tax Exempt Money Market Fund, and 0.15% of the average
daily net assets of the Equity and Fixed Income Funds. Each Fund is subject to a
minimum annual fee of $90,000, which may be reduced at the sole discretion of
the Administrator. Pursuant to a separate agreement with the Administrator, City
National Bank performs sub-administration services on behalf of the Equity and
Fixed Income Funds, for which it receives a fee paid by the Administrator at an
annual rate of up to 0.075% of the average daily net assets of such funds. For
the period end September 30, 2000, City National Bank received
sub-administration fees from the Equity and Fixed Income Funds in the amount of
approximately $54,000.
The Funds have adopted Rule 12b-1 Distribution Plan ("the Plan") with respect to
Class A and S Shares that allow each Fund to pay distribution and services fees.
The Distributor, as compensation for its services under the Plan, receives a
distribution fee, computed daily and paid monthly, at the annual rate of 0.50%
of the average daily net assets of the Class A Shares and Class S Shares of the
Money Market Funds; and 0.25% of the Class A Shares of the Equity and Fixed
Income Funds, with exception of 0.30% of the Class A Shares of the High Yield
Bond Fund, which may be used by the Distributor to provide compensation for
sales support and distribution-related activities.
On April 1, 1999, SEI Investments Fund Management assumed the role of Transfer
Agent whereby they provide services at an annual rate of $15,000 per fund. SEI
Investments Fund Management has agreed to absorb cer-
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 51
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
--------------------------------------------------------------------------------
tain transfer agency related expenses on behalf of the Fund. At September 30,
2000, the Funds had approximately $16,000 in transfer agent fee payable to
SEIInvestment Fund management.
On April 1, 1999, First Union National Bank assumed the role of Custodian for
the Trust. The Custodian plays no role in determining the investment policies of
the Funds or which securities are to be purchased or sold by the Funds.
The Funds have also adopted a Shareholder Services Agreement that permits
payment of compensation to service providers, that may include City National
Bank, that have agreed to provide certain shareholder support for their
customers who own Class A, Class S or Institutional Class Shares. In
consideration for such services, a service provider is entitled to receive
compensation at the annual rate of up to 0.25% of each Fund's average daily net
assets. For the period ended September 30, 2000, City National Bank received
Shareholder Servicing fees from the Funds in the amount of approximately
$5,074,000.
Certain officers of the Trust are also officers of SEI Investments Mutual Funds
Services (the "Administrator") and/or SEI Investments Distribution Co. (the
"Distributor"). Such officers are paid no fees by the Trust for serving as
officers of the Trust.
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS
WITH AFFILIATES:
Prior to April 1, 1999, Berkeley Capital Management ("BCM") served as the
Investment Adviser for the Prime Money Market Fund whereby they received fees at
an annual rate of 0.25% of the average daily net assets of the Fund. Following
the acquisition of North American Trust Company, City National Bank ("the
Adviser") assumed the role of Investment Adviser. Under the terms of the current
agreements, the Adviser receives an annual fee equal to 0.25% of the average
daily net assets of the Prime Money Market Fund, 0.26% of the average daily net
assets of the Government Money Market Fund, 0.27% of the average daily net
assets of the California Tax Exempt Money Market Fund, 0.40% of the average
daily net assets of the Corporate Bond Fund, 0.43% of the average daily net
assets of the Government Bond Fund, 0.27% of the average daily net assets of the
California Tax Exempt Bond Fund, 0.75% of the average daily net assets of the
High Yield Bond Fund, 0.62% of the average daily net assets of the Large Cap
Value Equity Fund, and 0.65% of the average daily net assets of the Large Cap
Growth Equity Fund.
Wellington Management Company, LLP ("Wellington Management") acts as the
Investment Sub-Adviser on behalf of the Government Money Market Fund.
Weiss, Peck, &Greer, L.L.C. ("WP&G") acts as the Investment Sub-Adviser on
behalf of the California Tax Exempt Money Market Fund.
Credit Suisse Asset Management, L.L.C. ("CSAM") acts as the Investment
Sub-Adviser on behalf of the High Yield Bond Fund.
The Adviser has contractually agreed to limit their fees or reimburse the
expenses of the Institutional Class shares of the Prime Money Market Fund to the
same contractual limit as was provided by BCM, the Fund's previous Investment
Adviser. The Adviser may remove this limit at any time after March 31, 2001, and
under certain conditions may recoup the expenses it has reimbursed or absorbed
within three years after they occur if such repayments can be achieved within
the Fund's then current expense limit. For the Government Money Market,
California Tax Exempt Money Market, Corporate Bond, Government Bond, California
Tax Exempt Bond, High Yield Bond, Large Cap Value Equity and Large Cap Growth
Equity Funds and all other classes of the Prime Money Market Fund, the Adviser
has voluntarily agreed to limit its fees or reimburse the expenses to the extent
necessary to keep the operating
--------------------------------------------------------------------------------
52 CNI CHARTER FUNDS
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
--------------------------------------------------------------------------------
expenses at or below certain percentages of the respective average daily net
assets. The contractual and voluntary expense limitations (expressed as a
percentage of average daily net assets) are as follows:
Large Cap Large Cap
Growth Value High Yield
Equity Equity Bond
Fund Fund Fund
--------- --------- ----------
Institutional Class 1.05% 1.00% 1.00%
Class A 1.30% 1.25% 1.30%
California
Corporate Government Tax Exempt
Bond Bond Bond
Fund Fund Fund
--------- --------- ----------
Institutional Class 0.75% 0.70% 0.50%
Class A 1.00% 0.95% 0.75%
Prime California
Money Government Tax Exempt
Market Money Market Money Market
Fund Fund Fund
--------- --------- ----------
Institutional Class 0.63% 0.63% 0.55%
Class A 0.85% 0.85% 0.78%
Class S 1.05% 1.05% 0.98%
The Trust and SEI Investments Distribution Co. ("the Distributor"), are parties
to a Distribution Agreement dated April 8, 1999. The Distributor receives no
fees for its distribution services under this agreement.
At September 30, 2000, the following fees were payable to City National Bank net
of waivers from each fund:
SUB- SHARE- DISTRI-
INVESTMENT ADMINIS- HOLDER BUTION
ADVISORY TRATIVE SERVICES SERVICES
FEE FEE FEE FEE
(000) (000) (000) (000)
--------- -------- -------- --------
Large Cap Growth Equity Fund $ 8 $ 1 $ 5 $ --
Large Cap Value Equity Fund 12 2 6 --
High Yield Bond Fund 5 1 2 --
Corporate Bond Fund 5 1 5 --
Government Bond Fund 2 1 2 --
California Tax Exempt Bond Fund -- 1 2 --
Prime Money Market Fund 70 -- 84 94
Government Money
Market Fund 362 -- 281 493
California Tax Exempt
Money Market Fund 40 -- 87 143
5. INVESTMENT TRANSACTIONS:
The cost of security purchases and proceeds from the sale of securities, other
than temporary investments in short-term securities for the period ended
September 30, 2000, were as follows for the "Equity and Fixed Income Funds":
PURCHASES SALES
U.S. U.S.
GOVERNMENT OTHER GOVERNMENT OTHER
FUND (000) (000) (000) (000)
------ ---------- ----- ---------- -----
Large Cap Growth Equity
Fund $ -- $13,179 $ -- $10,938
Large Cap Value Equity
Fund -- 13,467 -- 9,841
High Yield Bond Fund -- 9,968 -- 317
Corporate Bond Fund 2,489 5,114 -- 1,172
Government Bond Fund 2,231 -- 2,699 1,133
California Tax Exempt
Bond Fund -- 5,611 -- 7,642
At September 30, 2000, the total cost of securities and the net realized gains
or losses on securities sold for federal income tax purposes were not materially
different from the amounts reported for financial reporting purposes. Based on
cost for federal income tax purposes, the aggregate gross unrealized gain on
securities, the aggregate gross unrealized loss on securities and the net
unrealized gain/(loss) at September 30, 2000 for each of the Fixed Income and
Equity Funds is as follows:
NET APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
FUND (000) (000) (000)
---- ------------ ------------ -----------------
Large Cap Growth
Equity Fund $ 3,549 $(2,455) $ 1,094
Large Cap Value
Equity Fund 10,395 (253) 10,142
High Yield Bond Fund 238 (465) (227)
Corporate Bond Fund 271 (238) 33
Government Bond Fund 38 (118) (80)
California Tax Exempt
Bond Fund 175 (26) 149
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 53
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
September 30, 2000
--------------------------------------------------------------------------------
6. CAPITAL LOSS CARRYFORWARDS:
At September 30, 2000, the following Funds have Capital loss carryforwards:
EXPIRATION
FUND AMOUNT DATE
---- ------- ----------
Large Cap Growth Equity Fund $ 23,446 09/30/08
Corporate Bond Fund 6,194 09/30/08
Government Bond Fund 127,886 09/30/08
For tax purposes, the losses in the Funds can be carried forward for a maximum
of eight years to offset any net realized capital gains.
7. CONCENTRATION OF CREDIT RISK:
CALIFORNIA TAX EXEMPT FUNDS-SPECIFIC RISKS
The ability of issuers to pay interest on, and repay principal of, California
municipal securities may be affected by the general financial condition of the
State of California.
8. AFFILIATED TRANSACTIONS:
On January 18, 2000, the net assets of City National Bank Collective Investment
Funds: The CNI Growth Equity, CNI-EBT Equity, CNI-EBT Large Cap Growth Equity,
CNI Value Equity, CNI-EBT Large Cap Value Equity, CNI Fixed Income, CNI-EBT
Fixed Income, CNI Taxable Fixed Income, CNI-EBT Government Securities and
CNI-EBT Tax Exempt Fixed Income Funds, consisting entirely of securities and
certain related receivables, were converted on a tax-free basis into the Large
Cap Growth Equity, Large Cap Value Equity, Corporate Bond, Government Bond, and
California Tax Exempt Bond Funds. The number of shares issued for each fund and
the net assets of each fund (including net unrealized gain/loss) immediately
before the conversion were as follows:
NET ASSETS UNREALIZED GAIN/
COMMON TRUST FUND (000) (LOSS) (000)
----------------- ---------- ----------------
CNI Growth Equity Fund (1) $14,450 $ 1,464
CNI-EBT Equity Fund (1) 1,294 346
CNI-EBT Large Cap Growth Equity
Fund (1) 5,579 707
CNI Value Equity Fund (2) 23,673 12,334
CNI-EBT Large Cap Value Equity
Fund (2) 3,658 243
CNI Fixed Income Fund (3) 14,827 (263)
CNI-EBT Fixed Income Fund (3) 3,191 (13)
CNI Taxable Fixed Income
Fund (4) 12,715 (374)
CNI-EBT Government Securities
Fund (4) 606 (14)
CNI-EBT Tax Exempt Fixed Income
Fund (5) 13,419 (87)
(1) Converted into the Large Cap Growth Equity Fund.
(2) Converted into the Large Cap Value Equity Fund.
(3) Converted into the Corporate Bond Fund.
(4) Converted into the Government Bond Fund.
(5) Converted into the California Tax Exempt Bond Fund.
MUTUAL FUNDS NET ASSETS SHARES ISSUED
------------ ---------- -------------
Large Cap Growth Equity Fund $ 100 2,132,293
Large Cap Value Equity Fund 100 2,733,138
Corporate Bond Fund 100 1,801,808
Government Bond Fund 100 1,332,122
California Tax Exempt Bond Fund 100 1,341,878
The Net Asset Value of shares issued in exchange for the assets and the number
of shares issued in the tax-free conversions are included in capital share
transactions and shares issued and redeemed, respectively, of the Institutional
Class in the Statement of Changes in Net Assets for each respective fund.
--------------------------------------------------------------------------------
54 CNI CHARTER FUNDS
<PAGE>
REPORT OF INDEPENDENT AUDITORS
--------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of CNI Charter Funds:
We have audited the accompanying statements of net assets of the Large Cap
Growth Equity Fund, Large Cap Value Equity Fund, High Yield Bond Fund, Corporate
Bond Fund, Government Bond Fund, California Tax-Exempt Bond Fund, Prime Money
Market Fund, Government Money Market Fund, and California Tax Exempt Money
Market Fund (nine of the Funds comprising the CNI Charter Funds) as of September
30, 2000 and the related statements of operations, statements of changes in net
assets, and financial highlights for the period from January 14, 2000
(commencement of operations) through September 30, 2000 for the Large Cap Growth
Equity Fund, Large Cap Value Equity Fund, High Yield Bond Fund, Corporate Bond
Fund, Government Bond Fund, and California Tax-Exempt Bond Fund, and the related
statements of operations, statements of changes in net assets, and financial
highlights for the eleven months ended September 30, 2000 and the year ended
October 31, 1999 for the Prime Money Market Fund, and the related statements of
operations, statements of changes in net assets, and financial highlights for
the eleven months ended September 30, 2000 and for the period from June 21, 1999
(commencement of operations) through October 31, 1999 for the Government Money
Market Fund and California Tax Exempt Money Market Fund. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. For the Prime Money
Market Fund, the statement of changes in net assets and financial highlights for
the period from March 23, 1998 (commencement of operations) through October 31,
1998 were audited by other auditors whose report thereon dated December 11, 1998
expressed an unqualified opinion on this information.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 2000, by correspondence with the custodian
and other appropriate audit procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights which
were audited by us and referred to above present fairly, in all material
respects, the financial position of each of the aforementioned funds of CNI
Charter Funds as of September 30, 2000, the results of their operations, the
changes in their net assets, and their financial highlights for the periods
indicated herein, in conformity with accounting principles generally accepted in
the United States of America.
/S/ KPMG LLP
KPMG LLP
Los Angeles, California
November 15, 2000
--------------------------------------------------------------------------------
CNI CHARTER FUNDS 55
<PAGE>
NOTICE TO SHAREHOLDERS
September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
For shareholders that do not have a September 30, 2000 taxable year end, this
notice is for informational purposes only. For shareholders with a September 30,
2000 taxable year end, please consult your tax advisor as to the pertinence of
this notice.
For the fiscal year ended September 30, 2000 each fund is designating the
following items with regard to distributions paid during the year as follows:
<TABLE>
<CAPTION>
(A)* (B)*
LONG TERM ORDINARY
CAPITAL GAIN INCOME TOTAL (C)**
DISTRIBUTIONS DISTRIBUTIONS TAX EXEMPT DISTRIBUTIONS QUALIFYING
FUND (TAX BASIS) (TAX BASIS) INTEREST (TAX BASIS) DIVIDEND (1)
---- ------------- ------------- ---------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Large Cap Growth Equity Fund 0% 0% 0% 0% 0%
Large Cap Value Equity Fund 0% 100% 0% 100% 100%
High Yield Bond Fund 0% 100% 0% 100% 0%
Corporate Bond Fund 0% 100% 0% 100% 0%
Government Bond Fund 0% 100% 0% 100% 0%
California Tax-Exempt Bond Fund 0% 1% 99% 100% 0%
Prime Money Market Fund 0% 100% 0% 100% 0%
Government Money Market Fund 0% 100% 0% 100% 0%
California Tax-Exempt
Money Market Fund 0% 0% 100% 100% 0%
<FN>
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
* Items (A) and (B) are based on the percentage of each fund's total
distribution.
** Item (C) is based on the percentage of ordinary income distributions of
each fund.
</FN>
</TABLE>
--------------------------------------------------------------------------------
56 CNI CHARTER FUNDS
