The Board of Trustees
CNI Charter Funds:
In planning and performing our audit of the financial statements
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 constituting the
CNI Charter Funds) for the period ended September 30, 2000, we
considered the Funds' internal control, including control activities
for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR,
not to provide assurance on internal control.
The management of the Funds is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess
the expected benefits and related costs of controls. Generally,
controlsthat are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with accounting principles
generally accepted in the United States of America. Those controls
include the safeguarding of assets against unauthorized acquisition,
use, or disposition.
Because of inherent limitations in internal control, error or fraud
may occur and not be detected. Also, projection of any evaluation
of internal control to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose
all matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which
the design or operation of the specific internal control components
does not reduce to a relatively low level the risk that
misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited
may occur and not be detected within a timely period by
employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal
control, including controls for safeguarding securities, that we consider
to be material weaknesses as defined above as of September 30, 2000.
This report is intended solely for the information and use of
management and the Board of Trustees of the Funds and the
Securities and Exchange Commission and is not intended to be
and should not be used by anyone other than these specified parties.
November 15, 2000
