/S/CNI GRAPHIC OMITTED
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ........................... 2
INVESTMENT ADVISER'S REPORT
Equity Funds ................................ 3
Fixed Income Funds .......................... 3
STATEMENTS OF NET ASSETS/
SCHEDULE OF INVESTMENTS ....................... 4
STATEMENT OF ASSETS AND LIABILITIES ..............31
STATEMENTS OF OPERATIONS .........................32
STATEMENTS OF CHANGES IN NET ASSETS ..............35
FINANCIAL HIGHLIGHTS .............................44
NOTES TO FINANCIAL STATEMENTS ....................47
This report and the financial statements contained herein are provided for the
general information of the shareholders of the CNI Charter Funds. This report is
not authorized for distribution to prospective investors in the CNI Charter
Funds unless preceded or accompanied by an effective prospectus.
<PAGE>
[Logo omitted]
Dear Shareholders,
We are pleased to provide your CNI Charter Funds Semi-Annual Report for the
six-months ended April 30, 2000. This period witnessed many significant changes,
both in the financial markets and in the CNI Charter Funds line-up.
NEW FUNDS
On January 14th of this year, we proudly announced the addition of six new
funds:
(BULLET) Fixed Income Funds:
1. CNI Charter Corporate Bond Fund
2. CNI Charter Government Bond Fund
3. CNI Charter California Tax Exempt Bond Fund
4. CNI Charter High Yield Bond Fund
(BULLET) Equity Funds:
1. CNI Charter Large Cap Value Equity Fund
2. CNI Charter Large Cap Growth Equity Fund
In keeping with our overall investment philosophy, each Fund represents a
well-diversified portfolio of individual securities within its specified asset
class. The CNI Charter Family of Funds is now comprised of nine different funds
to help investors better diversify and tailor their portfolios to their own
unique return objectives and risk tolerances.
MARKET WRAP-UP AND OVERALL PERFORMANCE
Although both the fixed income and equity markets experienced significant
volatility over the past six months, we are pleased to report that the
performance of the CNI Charter Funds was in line with expectations. Through our
active and disciplined investment management, the Funds seek to achieve
competitive total rates of return, in line with their respective, prescribed
risk parameters.
Our overall view for the markets in the near term continues to be cautious. We
anticipate a continued high degree of volatility for the remainder of this year,
and will seek to carefully manage the various portfolios accordingly.
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 Investor Services at 1-888-889-0799.
Thank you for investing in the CNI Charter Family of Funds.
Sincerely,
/S/SIGNATURE OMITTED VERNON C. KOZLEN /S/SIGNATURE OMITTED Richard A. Weiss
EXECUTIVE VICE PRESIDENT CHIEF INVESTMENT OFFICER
CITY NATIONAL INVESTMENTS CITY NATIONAL INVESTMENTS
2
<PAGE>
SEMI-ANNUAL REPORT
APRIL 30, 2000
Investment Adviser's Equity Report:
During the past six months, the global equity markets have experienced high
volatility against a backdrop of continuing strong economic growth, rising
short-term rates, and increasing inflation. Economic conditions in the U.S.
remained solid.
With continued strength in consumer spending and business investment, GDP
rose 5.4% in the first quarter of 2000, marking the third consecutive quarter of
growth in excess of 5%. Healthy job growth has resulted in a very tight labor
market, with the unemployment rate averaging 4.1% during the quarter - near a
30-year low. The Fed continued its course of small, steady rate hikes in the
quarter, delivering two more 1/4-point increases, pushing the Federal Funds Rate
to 6%.
Performance of the NASDAQ equities continued to outpace the broader market,
reaching unprecedented levels before starting a reversal in early March. Nagging
legal problems for Microsoft, concern about Internet firms running out of cash,
and a confusing picture of the economy prompted the equity market to begin
dealing with valuation issues.
Investors began reversing multiple expansion in the technology sector,
causing sharp price drops in many tech stocks and a rapid sector rotation out of
technology and into utilities, basic materials, health care and finance. These
sectors are considered to have less downside risk in an uncertain market.
The CNI Charter Large Cap Value Equity Fund and Large Cap Growth Equity
Fund remain well diversified and well positioned. Over the long-term, we believe
that our investment process will successfully guide the Funds through these
volatile markets to deliver competitive investment returns.
Sincerely,
/S/SIGNATURE OMITTED
Richard K. Barnett
DIRECTOR OF EQUITIES
CITY NATIONAL INVESTMENTS
Investment Adviser's Fixed Income Report:
The bond market started the new year with caution; keeping one eye on the tight
labor market and the other on the non-inflationary yet robust U.S. economic
growth. As the year progressed, the U.S. Treasury market benefited from both a
flight to quality from nervous equity investors as well as government
announcements of their intention to retire large sums of debt obligations,
thereby reducing the supply of Treasury bonds.
During the first quarter, the 10-year Treasury gained favor as the new
benchmark long-bond, due to issuance and supply constraints of the 30-year
Treasury bond. Economic releases suggest that the Federal Reserve may need to
raise interest rates more than Wall Street previously believed in order to stave
off future inflation and yields have started to climb to levels not seen since
mid-February.
Other sectors of the taxable bond market did not fare quite as well as the
Treasury market. Yield spreads or yield differentials to Treasuries increased
for agency and corporate bond issues. This was due, in part, to the lower
Treasury yields but also to investor concern over credit issues.
Performance for the municipal sector has outpaced taxable counterparts thus
far this year. Surpluses in state and local budgets and a lack of new bond
issuance have helped yields on municipal bonds to remain relatively stable.
The money market sector was seen as a safe haven from the more volatile
equity and fixed income markets. Yields steadily inched upward as market
participants concluded that short rates were heading higher.
The CNI Charter Bond and Money Market Funds are well positioned in this
environment. We have maintained a defensive posture throughout this volatile
period by seeking higher-quality issues and shorter maturities. We feel this
strategy will help our Funds navigate through these uncertain market conditions
while achieving their respective objectives.
Sincerely,
/S/SIGNATURE OMITTED
Rodney J. Olea
DIRECTOR OF FIXED INCOME
CITY NATIONAL INVESTMENTS
3
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
PRIME MONEY MARKET FUND
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Commercial Paper (87.2%)
Aerospace & Defense (1.9%)
General Dynamics
6.080%, 06/22/00 $ 8,000 $ 7,930
-------
Automotive (3.9%)
Daimler Chrysler
6.067%, 05/19/00 5,000 5,000
6.076%, 05/31/00 8,000 8,000
6.061%, 06/01/00 3,000 3,000
-------
16,000
-------
Banks (3.4%)
CitiCorp
6.072%, 05/18/00 10,000 10,000
6.090%, 06/06/00 4,000 4,000
-------
14,000
-------
Beauty Products (2.5%)
Estee Lauder Cosmetics
5.900%, 05/15/00 6,000 5,986
Kimberly Clark
6.000%, 05/12/00 4,000 3,993
-------
9,979
-------
Chemical Diversified (1.0%)
E.I. du Pont de Nemours
6.030%, 05/18/00 4,000 3,989
-------
Computers & Business Services (2.9%)
IBM Credit
5.918%, 05/05/00 6,000 6,000
6.037%, 05/17/00 6,000 6,000
-------
12,000
-------
Electrical Services (3.4%)
Duke Energy
5.850%, 05/05/00 3,000 2,998
5.970%, 05/05/00 5,000 4,997
Kansas City Power & Light
6.030%, 05/30/00 5,800 5,772
-------
13,767
-------
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Engineering Services (3.5%)
Fluor
6.010%, 05/11/00 $ 3,000 $ 2,995
6.000%, 05/17/00 6,000 5,984
6.030%, 05/23/00 5,500 5,480
---------
14,459
---------
Financial Services (14.7%)
Associates First Capital
6.066%, 05/18/00 5,000 5,000
6.020%, 06/09/00 8,000 8,000
Cit Group
6.046%, 05/01/00 8,000 8,000
6.084%, 05/16/00 5,000 5,000
6.299%, 07/27/00 3,000 3,000
Eagle Funding Capital
6.200%, 05/25/00 3,000 2,988
General Electric Capital
6.078%, 05/03/00 8,000 8,000
6.088%, 05/30/00 5,000 5,000
6.097%, 06/01/00 4,000 4,000
Giro Multi Funding
6.070%, 05/25/00 5,598 5,575
Receivables Capital
6.090%, 06/16/00 5,578 5,535
---------
60,098
---------
Food, Beverage & Tobacco (3.7%)
Coca-Cola
6.030%, 06/05/00 9,000 8,947
General Mills
6.000%, 05/04/00 6,000 5,997
---------
14,944
---------
Investment Banker/Broker Dealer (1.0%)
Bear Stearns
5.980%, 05/02/00 4,000 4,000
---------
Instruments/Controls (1.0%)
Parker Hannifin
6.020%, 05/09/00 4,117 4,111
---------
Insurance (9.3%)
Aegon Funding
6.020%, 05/08/00 5,000 4,994
6.040%, 05/23/00 9,000 8,967
See accompanying notes to financial statements.
4
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
PRIME MONEY MARKET FUND (continued)
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
American General
6.042%, 05/08/00 $10,000 $ 10,000
Prudential Funding
6.105%, 06/14/00 5,000 5,000
6.216%, 07/20/00 9,000 9,000
---------
37,961
---------
Leasing & Renting (2.5%)
International Lease Finance
5.990%, 05/04/00 10,000 9,995
---------
Leisure Products (0.3%)
Nike
6.050%, 05/23/00 1,100 1,096
---------
Machinery (4.8%)
Deere
6.115%, 05/22/00 7,000 7,000
6.093%, 05/25/00 3,000 3,000
6.086%, 06/02/00 5,000 5,000
Grainger
6.010%, 05/15/00 4,645 4,634
---------
19,634
---------
Personal Credit Institutions (13.0%)
American Express
6.066%, 05/11/00 6,000 6,000
6.065%, 05/17/00 3,000 3,000
6.082%, 05/25/00 5,000 5,000
General Motors Acceptance
6.099%, 05/31/00 3,000 3,000
6.061%, 06/08/00 5,000 5,000
6.184%, 06/20/00 5,000 5,000
Ford Motor Credit
6.064%, 05/09/00 4,000 4,000
6.002%, 05/16/00 10,000 10,000
6.084%, 05/26/00 3,000 3,000
Toyota Motor Credit
6.010%, 05/24/00 9,000 8,965
---------
52,965
---------
Petroleum & Fuel Products (1.7%)
Exxon Project Investment
6.000%, 05/10/00 7,000 6,989
---------
<PAGE>
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Retail (3.4%)
Hertz
6.067%, 05/26/00 $14,000 $ 14,000
---------
Special Purpose Entity (3.4%)
World Omni Vehicle
6.250%, 06/06/00 7,000 6,956
6.100%, 06/07/00 7,000 6,956
---------
13,912
---------
Telephones & Telecommunications (5.9%)
AllTel
6.000%, 05/05/00 7,100 7,095
6.020%, 05/05/00 5,000 4,997
France Telcommunications
6.050%, 05/25/00 7,000 6,972
6.050%, 06/02/00 5,000 4,973
---------
24,037
---------
Total Commercial Paper
(Cost $355,866) 355,866
---------
Corporate Obligations (6.9%)
Computers & Services (0.5%)
IBM
6.375%, 06/15/00 2,000 2,001
---------
Investment Banker/Broker Dealer (4.7%)
Bear Stearns (A)
6.948%, 02/06/01 2,500 2,516
Bear Stearns, Ser B, MTN (A)
6.331%, 07/10/00 1,650 1,650
Merrill Lynch (A)
6.099%, 03/28/01 7,000 7,000
6.110%, 04/17/01 7,000 7,000
Merrill Lynch MTN
6.620%, 06/13/00 1,000 1,000
---------
19,166
---------
Telephones & Telecommunication (1.7%)
AT&T (A)
5.890%, 03/08/01 7,000 6,999
---------
Total Corporate Obligations
(Cost $28,166) 28,166
---------
See accompanying notes to financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
PRIME MONEY MARKET FUND (concluded)
Shares/Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
U.S. Government Agency Obligation (1.0%)
SLMA (A)
6.132%, 07/21/00 $ 4,000 $ 4,000
---------
Total U.S. Government Agency Obligation
(Cost $4,000) 4,000
---------
Certificates of Deposit (1.4%)
Bayerische Hypo Vereinsbank
(New York) (A)
6.050%, 05/15/00 5,000 5,000
Bayerische Hypo Vereinsbank (A)
6.050%, 05/15/00 1,000 1,000
---------
Total Certificates of Deposit
(Cost $6,000) 6,000
---------
Cash Equivalents (3.5%)
Fidelity Colchester Domestic
Money Market Portfolio,
Class I 11,872,233 11,872
SEI Daily Income Trust Prime
Obligation Fund 2,334,080 2,334
---------
Total Cash Equivalents
(Cost $14,206) 14,206
---------
Total Investments (100.0%)
(Cost $408,238) 408,238
---------
Other Assets and Liabilities, Net (0.0%) (29)
---------
Value
(000)
-------------------------------------------------------------------------------
Net Assets:
Fund Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 225,991,281
outstanding shares of beneficial interest $225,959
Fund Shares -- Class A (unlimited
authorization -- $0.01 par value) based
on 150,754,397 outstanding shares of
beneficial interest 150,754
Fund Shares -- Class S (unlimited
authorization -- $0.01 par value) based
on 31,462,396 outstanding shares of
beneficial interest 31,462
Undistributed net investment income 34
--------
Total Net Assets (100.0%) $408,209
========
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 APRIL 30, 2000. THE DATE SHOWN IS THE EARLIER OF
RESET DATE OR DEMAND DATE.
MTN -- MEDIUM TERM NOTE
SLMA -- STUDENT LOAN MARKETING ASSOCIATION
See accompanying notes to financial statements.
6
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
GOVERNMENT MONEY MARKET FUND
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
U.S. Government Agency Obligations (59.7%)
FFCB (A)
5.961%, 05/01/00 $ 25,000 $ 24,995
FHLB
5.010%, 11/16/00 7,000 6,951
4.950%, 12/04/00 15,000 14,890
4.875%, 01/26/01 15,000 14,847
6.520%, 03/28/01 15,000 14,992
FHLB (A)
5.930%, 05/15/00 81,000 80,954
6.003%, 05/28/00 50,000 49,992
6.130%, 07/04/00 35,000 34,990
FHLMC
5.880%, 05/16/00 85,000 84,792
5.950%, 06/01/00 30,000 29,849
5.250%, 07/05/00 30,000 29,716
FHLMC (A)
5.920%, 05/20/00 50,000 49,960
5.941%, 06/20/00 52,000 51,959
FHLMC MTN
5.990%, 12/06/00 5,340 5,333
FNMA
6.550%, 03/20/01 33,000 32,991
5.120%, 05/12/00 15,000 14,995
5.880%, 06/08/00 41,000 40,745
FNMA (A)
5.920%, 05/04/00 30,000 29,995
5.929%, 05/08/00 40,000 39,976
5.859%, 05/13/00 50,000 49,971
5.879%, 05/13/00 95,000 94,957
5.985%, 05/22/00 90,500 90,461
6.084%, 07/14/00 30,000 29,996
FNMA MTN
5.120%, 05/26/00 20,000 19,986
5.660%, 09/07/00 45,000 44,968
5.760%, 10/02/00 22,125 22,112
6.320%, 02/02/01 15,000 14,985
6.480%, 02/22/01 35,000 34,980
SLMA MTN
5.900%, 12/01/00 16,000 15,988
---------
Total U.S. Government Agency Obligations
(Cost $1,071,326) 1,071,326
---------
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
Repurchase Agreements (40.1%)
ABN-Amro (B)
5.850%, dated 04/28/00, matures
05/01/00, repurchase price
$146,071,175 (collateralized by
various U.S. Government Obligations,
ranging in par value $7,425,000 -
$45,000,000, 0.000% - 6.900%,
06/12/00 - 12/09/03;
with total market value
$148,920,158) $146,000 $146,000
Goldman Sachs (B) 5.840%, dated
04/28/00, matures 05/01/00,
repurchase price $285,138,700
(collateralized by various
U.S. Government Obligations,
ranging in par value $69,052 -
$25,415,266, 5.500% - 10.500%,
01/01/00 - 04/01/30; with
total market value
$290,700,000) 285,000 285,000
Lehman Brothers, Inc. (B)
5.800%, dated 04/28/00, matures
05/01/00, repurchase price
$19,709,522 (collateralized
by various U.S.Government
Obligations ranging in par value
$2,420,000 - $10,000,000,
5.750% - 7.250%, 07/15/03 -
03/30/09; with total market
value $20,095,109) 19,700 19,700
Warburg Dillon 6.000%,
dated 04/13/00, matures
05/12/00, repurchase price
$130,346,667 (collateralized
by various U.S. Government
Obligations, ranging in par
value $6,837,000 - $71,310,000,
0.000% - 7.350%, 02/28/03 -
08/06/38; with total
market value $132,600,584) 130,000 130,000
See accompanying notes to financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
GOVERNMENT MONEY MARKET FUND (concluded)
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Warburg Dillon (B)
5.870%, dated 04/28/00, matures
05/01/00, repurchase price
$138,167,554 (collateralized
by U.S. Government Obligations,
par value $158,100,000, 6.000%,
10/01/29; with total market
value $140,862,525) $138,100 $ 138,100
----------
Total Repurchase Agreements
(Cost $718,800) 718,800
----------
Total Investments (99.8%)
(Cost $1,790,126) 1,790,126
----------
Other Assets and Liabilities, Net (0.2%) 4,385
----------
Net Assets:
Fund Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 20,843,373 outstanding
shares of beneficial interest 20,843
Fund Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 1,749,555,095 outstanding
shares of beneficial interest 1,749,555
Fund Shares -- Class S (unlimited
authorization -- $0.01 par value) based
on 24,105,938 outstanding
shares of beneficial interest 24,106
Undistributed net investment income 6
Accumulated net realized gain
on investments 1
----------
Total Net Assets (100.0%) $1,794,511
==========
Value
-------------------------------------------------------------------------------
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 APRIL 30, 2000. THE DATE SHOWN IS THE EARLIER OF THE
RESET DATE OR THE DEMAND DATE.
(B) TRI-PARTY 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.
8
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Municipal Bonds (104.1%)
California (99.3%)
ABAG, Finance Authority, Bentley
School Project, COP (A) (B) (C)
4.500%, 05/08/00 $ 1,500 $ 1,500
Adelanto, Public Utility Authority,
Ser B, RB (A) (B) (C)
5.300%, 05/08/00 5,300 5,300
Alameda-Contra Costa, School
Finance Authority, Capital
Improvement Project,
Ser F, RB (A) (B) (C)
5.300%, 05/08/00 4,600 4,600
Alhambra, Industrial Development
Authority, Sunclipse Project,
RB (A) (B) (C)
3.700%, 05/08/00 1,200 1,200
Anaheim, Housing Authority,
Heritage Village Apartments
Project, Ser A, RB (A) (B) (C)
5.300%, 05/08/00 6,035 6,035
Auburn, Unified School District
Authority, Capital Improvement
Project, GO (A) (B) (C)
5.000%, 05/08/00 1,500 1,500
California, Health Facilities Finance
Authority, Childrens Hospital
Project, RB, MBIA
Pre-Refunded @ 102 (D)
6.500%, 07/01/00 3,300 3,380
California, Health Facilities Finance
Authority, Memorial Health
Services Project, RB (A) (B)
4.850%, 05/08/00 4,450 4,450
California, Health Facilities Finance
Authority, Valleycare Project,
Ser A, RB Pre-Refunded
@ 102 (D)
7.000%, 05/01/00 4,000 4,080
California, Infrastructure &
Economic Development
Authority, Independent Systems
Project, Ser A, RB, MBIA (A) (B)
5.000%, 05/08/00 15,000 15,000
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
California, School Facilities
Financing Authority, Improvement
Financing Project, Ser B,
COP (A) (B) (C)
4.900%, 05/08/00 $ 1,400 $ 1,400
California State, Economic
Development Financing
Authority, Independent Systems
Project, Ser B, RB (A) (B) (C)
5.000%, 05/08/00 2,700 2,700
California State, Economic
Development Financing
Authority, Independent Systems
Project, Ser D, RB (A) (B) (C)
5.150%, 05/08/00 2,000 2,000
California State, Economic
Development Financing
Authority, KQED Incorporated
Project, RB (A) (B) (C)
4.650%, 05/08/00 400 400
California State, Education Facilities
Authority, Point Loma Nazerene
University Project, RB (A) (B) (C)
4.900%, 05/08/00 1,550 1,550
California State, Educational
Facilities Authority, Life
Chiropractic College Project,
RB (A) (B) (C)
4.950%, 05/08/00 6,500 6,500
California State, Health Facilities
Financing Authority, Adventist
Health System Project,
Ser A, RB (A) (B) (C)
5.300%, 05/08/00 2,800 2,800
California State, Health Facilities
Financing Authority, Scripps
Memorial Hospital Project,
Ser B, RB, MBIA (A) (B)
5.250%, 05/08/00 13,220 13,220
California State, School
Financing Authority, Capital
Improvement Project,
Ser A, COP (A) (B) (C)
4.900%, 05/08/00 4,350 4,350
See accompanying notes to financial statements.
9
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (continued)
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
California Statewide, Community
Development Authority, Citrus
Valley Health Partners Project,
COP (A) (B)
5.950%, 05/01/00 $10,500 $ 10,500
California Statewide, Community
Development Authority,
Covenant Retirement
Communities Project,
COP (A) (B) (C)
4.950%, 05/08/00 8,500 8,500
California Statewide, Community
Development Authority, House
Ear Institute Project,
COP (A) (B) (C)
5.750%, 05/01/00 5,370 5,370
California Statewide, Community
Development Authority, John
Muir/Mount Diablo Health Project,
COP, AMBAC (A) (B)
5.950%, 05/01/00 2,320 2,320
California Statewide, Community
Development Authority,
Memorial Health Services Project,
COP (A) (B)
4.850%, 05/08/00 3,550 3,550
California Statewide, Community
Development Authority,
St. Joseph Health System,
COP (A) (B)
4.900%, 05/08/00 750 750
Chula Vista, Industrial Development
Authority, San Diego Gas &
Electric Project, Ser A, RB (A) (B)
6.000%, 05/01/00 15,300 15,300
Corona, Multi-Family Housing
Authority, County Hills Project,
Ser B, RB (A) (B) (C)
5.300%, 05/08/00 1,355 1,355
Corona, Redevelopment Agency,
Crown Point Project,
Ser 85, RB (A) (B) (C)
3.250%, 05/01/00 6,515 6,515
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Covina, Multi-Family Housing
Authority, Shadowhills
Apartments Project,
Ser A, RB, FNMA (A) (B) (E)
5.100%, 05/08/00 $ 3,100 $ 3,100
Culver City, Wastewater Facilities
Authority, Ser A, RB, FGIC
4.500%, 09/01/00 265 266
Cupertino, Unified School District,
TRAN
3.375%, 06/30/00 8,000 8,002
El Cerrito, TRAN
3.400%, 06/30/00 2,000 2,000
Elk Grove, Unified School District,
TRAN
4.500%, 06/30/00 6,000 6,011
Escondido, Community
Development Authority, Heritage
Housing Project, RB (A) (B) (C)
5.300%, 05/08/00 5,750 5,750
Gaf Tax Exempt Bond Grantor Trust,
Ser GA-7, RB (A) (B) (C)
3.900%, 05/08/00 5,885 5,885
Huntington Park, Public Financing
Authority, Parking Project,
Ser A, RB (A) (B) (C)
4.950%, 05/08/00 4,315 4,315
Irwindale, Industrial Development
Authority, Toys "R" Us Project,
RB (A) (B) (C)
5.225%, 05/08/00 4,175 4,175
Lancaster, Multi-Family Housing
Authority, 20 Street Apartments
Project, Ser C, RB (A) (B) (C)
4.950%, 05/08/00 3,250 3,250
Lancaster, Multi-Family Housing
Authority, Household Bank
Project, Ser A, RB (A) (B) (C)
4.900%, 05/08/00 2,510 2,510
Lancaster, Multi-Family Housing
Authority, The Willow Project,
Ser A, RB (A) (B) (C)
4.900%, 05/08/00 6,000 6,000
See accompanying notes to financial statements.
10
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (continued)
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Lancaster, Redevelopment Agency,
Multi-Family Housing Authority,
Westwood PK Apartments Project,
Ser K, RB (A) (B) (C)
4.800%, 05/08/00 $ 500 $ 500
Long Beach, Building Finance
Authority, Long Beach Museum
Project, RB (A) (B) (C)
4.900%, 05/08/00 2,060 2,060
Long Beach, Health Facilities
Authority, Memorial Health
Services Project, RB (A) (B)
4.850%, 05/08/00 3,500 3,500
Loomis, Unified Elementary School
District, TRAN
4.125%, 10/01/00 1,225 1,227
Los Angeles County, Community
Redevelopment Agency,
Willowbrook Project,
RB (A) (B) (C)
4.750%, 05/08/00 1,000 1,000
Los Angeles County, Multi-Family
Housing Authority, Crescent
Gardens Project, Ser A,
RB (A) (B) (C)
4.350%, 05/08/00 10,700 10,700
Los Angeles County, Multi-Family
Housing Authority, Malibu
Canyon Apartments Project,
Ser B, RB (A) (B) (C)
4.400%, 05/08/00 3,500 3,500
Los Angeles County, Pension
Obligation, Ser A, RB,
AMBAC (A) (B)
5.000%, 05/08/00 600 600
Los Angeles County, Pension
Obligation, Ser B, RB,
AMBAC (A) (B)
5.000%, 05/08/00 10,000 10,000
Los Angeles County, TRAN
4.000%, 06/30/00 4,800 4,805
Los Angeles, Community
Redevelopment Agency,
CMC Medical Plaza Partner
Project, RB (A) (B) (C)
4.800%, 05/08/00 800 800
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
Los Angeles, Community
Redevelopment Agency,
Multi-Family Housing Authority,
Promenade Towers Project,
RB (A) (B) (C)
4.700%, 05/08/00 $11,000 $ 11,000
Los Angeles, Water & Electric
Power Authority,
Ser A, RB (A) (B)
5.200%, 05/08/00 15,000 15,000
Los Angeles, Water & Electric
Power Authority, Ser D, RB (A) (B)
5.150%, 05/08/00 5,000 5,000
Los Angeles, Metropolitan
Transportation Sales Tax
Authority, First Tier Project,
Ser B, RB
4.500%, 07/01/00 1,000 1,001
Los Angeles, Multi-Family Housing
Authority, Meadowridge
Apartments Project, RB,
FNMA (A) (B) (E)
5.100%, 05/08/00 5,390 5,390
Los Angeles, Multi-Family Housing
Authority, Valencia Village Project,
Ser C, RB (A) (B) (C)
4.750%, 05/08/00 3,500 3,500
Newport Beach, Health Facilities
Authority, Hoag Memorial
Hospital Project,
Ser A, RB (A) (B)
6.000%, 05/01/00 10,000 10,000
Newport Beach, Health Facilities
Authority, Hoag Memorial
Hospital Project,
Ser C, RB (A) (B)
6.000%, 05/01/00 2,700 2,700
Newport Beach, Health Facilities
Authority, Hoag Memorial
Presbyterian Hospital Project,
RB (A) (B)
6.000%, 05/01/00 7,700 7,700
Oakland, Capital Equipment
Project, COP (A) (B) (C)
4.950%, 05/08/00 2,190 2,190
See accompanying notes to financial statements.
11
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (continued)
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
Oakland, Liquidity Facilities
Authority, Assessment Bay Area
Project, RB (A) (B) (C)
5.100%, 05/08/00 $ 1,710 $ 1,710
Orange County, Apartment
Development Authority, Harbor
Pointe Project, Ser D,
RB (A) (B) (C)
4.950%, 05/08/00 4,100 4,100
Orange County, Apartment
Development Authority, Radnor/
Aragon Corporation Project,
Ser D, RB (A) (B) (C)
4.625%, 05/08/00 3,160 3,160
Orange County, Fire Authority,
TRAN
4.500%, 07/12/00 7,000 7,014
Oxnard, Community
Redevelopment Agency,
Channel Islands Business
Project, RB (A) (B) (C)
5.475%, 05/08/00 4,375 4,375
Palmdale, Community
Redevelopment Agency,
Multi-Family Housing Authority,
Manzanita Villas Apartment
Project, RB (A) (B)
5.050%, 05/08/00 3,000 3,000
Panama-Buena Vista, Unified
School District Authority, Capital
Improvements Finance Project,
COP (A) (B) (C)
5.550%, 05/08/00 9,000 9,000
Pasadena, Historical Rehabilitation
Authority, Dodsworth Building
Project, RB (A) (B) (C)
4.600%, 05/08/00 4,000 4,000
Pasadena, Rose Bowl
Improvements Project,
COP (A) (B) (C)
4.750%, 05/08/00 10,380 10,380
Pasadena, Unified School District,
Ser A, GO, FGIC
4.750%, 05/01/00 427 427
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Pico Riveria, Redevelopment
Agency, Crossroads Plaza
Project, RB (A) (B) (C)
4.650%, 05/08/00 $ 7,800 $ 7,800
Placer Hills, Unified Elementary
School District, TRAN
4.125%, 10/01/00 1,150 1,152
Pleasanton, Multi-Family Housing
Authority, Valley Plaza Project,
Ser A, RB, FNMA (A) (B) (E)
4.750%, 05/08/00 800 800
Rancho Cucamonga,
Redevelopment Agency,
Rancho Redevelopment
Project, TA, FSA
4.250%, 09/01/00 940 942
Redwood City, City Hall Project,
COP (A) (B) (C)
4.950%, 05/08/00 2,000 2,000
Richmond, Joint Powers Financial
Authority, Ser B, RB
Pre-Refunded @ 102 (D)
7.250%, 05/15/00 1,856 1,896
Riverside County, Multi-Family
Housing Authority, De Anza
Villas Project, RB (A) (B) (C)
5.000%, 05/08/00 2,900 2,900
Riverside County, Multi-Family
Housing Authority, Polk
Apartments Project,
Ser O, RB (A) (B) (C)
5.150%, 05/08/00 7,890 7,890
Riverside County, Multi-Family
Housing Authority, Tyler Springs
Project, Ser C, RB,
FNMA (A) (B) (E)
4.950%, 05/08/00 2,250 2,250
Riverside, Multi-Family Housing
Authority, Countrywood & IA
Apartments Project,
Ser E, RB (A) (B) (C)
4.870%, 05/08/00 2,560 2,560
See accompanying notes to financial statements.
12
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (continued)
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Rocklin, Unified School District,
TRAN
4.125%, 10/01/00 $ 1,300 $ 1,303
Sacramento, City Financing
Authority, Solid Waste &
Redevelopment Project, RB,
AMBAC
4.500%, 12/01/00 955 960
San Bernardino County, County
Center Refinancing Project,
COP (A) (B) (C)
5.050%, 05/08/00 5,800 5,800
San Bernardino County, Industrial
Development Authority,
Sandpiper Inventories Limited
Project, RB (A) (B) (C)
4.000%, 05/08/00 2,800 2,800
San Bernardino County, Medical
Center Financing Project, COP
4.750%, 08/01/00 4,000 4,011
San Bernardino County,
Multi-Family Housing Authority,
Gold West Apartments Project,
Ser A, RB (A) (B) (C)
5.350%, 05/08/00 500 500
San Bernardino County, Multi-Family
Housing Authority, Indian Knoll
Apartment Project,
Ser A, RB (A) (B) (C)
4.870%, 05/08/00 3,580 3,580
San Bernardino County, Multi-
Family Housing Authority,
Montclair Heritage Project,
Ser A, RB (A) (B) (C)
5.350%, 05/08/00 4,620 4,620
San Bernardino County, Multi-
Family Housing Authority,
Mountain View Apartments
Project, RB (A) (B) (C)
4.950%, 05/08/00 2,110 2,110
San Bernardino County, Multi-
Family Housing Authority, Reche
Canyon Apartment Project,
Ser B, RB (A) (B) (C)
4.870%, 05/08/00 1,500 1,500
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
San Bernardino County, Multi-
Family Housing Authority, Rialto
Heritage Project,
Ser A, RB (A) (B) (C)
5.350%, 05/08/00 $ 4,330 $ 4,330
San Bernardino County, Multi-
Family Housing Authority,
Village Crossing Project,
Ser A, RB (A) (B) (C)
5.350%, 05/08/00 3,700 3,700
San Diego, Multi-Family Housing
Authority, RB, FNMA (A) (B) (E)
4.800%, 05/08/00 10,000 10,000
San Diego, Multi-Family Housing
Authority, University Town Center
Apartments Project, RB (A) (B) (C)
5.050%, 05/08/00 1,400 1,400
San Diego, Regional Municipal
Water Authority, TECP (B) (C)
3.400%, 07/05/00 7,000 7,000
San Francisco City & County,
Multi-Family Housing Authority,
737 Post Project, Ser D,
RB (A) (B) (C)
5.000%, 05/08/00 10,000 10,000
San Francisco City & County,
Multi-Family Housing Authority,
Bayside Village Project,
Ser A, RB (A) (B) (C)
4.350%, 05/08/00 500 500
San Francisco City & County,
Redevelopment Agency, Yerba
Buena Garden Project,
RB (A) (B) (C)
5.050%, 05/08/00 965 965
San Jose, Multi-Family Housing
Authority, Timberwood
Apartments Project,
RB (A) (B) (C)
5.050%, 05/08/00 1,000 1,000
San Leandro, Unified School
District, TRAN
3.375%, 06/30/00 6,000 6,001
San Lorenzo, Unified School
District, TRAN
3.500%, 06/30/00 2,500 2,501
See accompanying notes to financial statements.
13
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (continued)
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
San Marcos, Industrial Development
Authority, Amistar Project,
RB (A) (B) (C)
4.000%, 05/08/00 $ 4,175 $ 4,175
Santa Ana, Health Facility Authority,
Town & Country Project,
RB (A) (B) (C)
5.750%, 05/01/00 3,300 3,300
Santa Clara County, Financing
Lease Authority, Facility
Replacement Project,
Ser B, RB (A) (B) (C)
4.900%, 05/08/00 3,450 3,450
Santa Clara County, Multi-Family
Housing Authority, Briarwood
Apartments Project, Ser B, RB,
FNMA (A) (B) (E)
4.950%, 05/08/00 2,420 2,420
Simi Valley, Industrial & Economic
Development Authority, Wambold
Furniture Project, RB (A) (B) (C)
3.650%, 05/08/00 2,040 2,040
Simi Valley, Multi-Family Housing
Authority, Lincoln Wood Ranch
Project, RB (A) (B) (C)
5.300%, 05/08/00 2,500 2,500
Simi Valley, Multi-Family Housing
Authority, Ser A, RB (A) (B) (C)
4.950%, 05/08/00 2,140 2,140
Southern California, Metropolitan
Water District Authority,
Waterworks Project,
Ser C, RB (A) (B)
5.400%, 05/08/00 1,000 1,000
Southern California, Public Power
Authority, Transmission Project,
Ser 91, RB, AMBAC (A) (B)
5.000%, 05/08/00 10,000 10,000
Three Valleys, Municipal Water
Authority, Miramar Water
Treatment Project, RB (A) (B) (C)
4.850%, 05/08/00 3,000 3,000
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Turlock, Irrigation District Authority,
Transmission Project,
Ser A, COP (A) (B) (C)
4.950%, 05/08/00 $ 2,050 $ 2,050
Union City, Multi-Family Housing
Authority, Mission Sierra Project,
RB, FNMA (A) (B) (E)
5.000%, 05/08/00 1,000 1,000
Upland, Multi-Family Housing
Authority, Northwoods 156
Project, Ser A, RB,
FNMA (A) (B) (E)
4.950%, 05/08/00 1,000 1,000
Upland, Multi-Family Housing
Authority, Sunset Ridge & Village
Apartments Project,
RB (A) (B) (C)
4.950%, 05/08/00 6,700 6,700
Vallejo, Multi-Family Housing
Authority, Highlands Apartments
Project, Ser A, RB (A) (B) (C)
4.500%, 05/08/00 5,620 5,620
West Basin, Municipal Water District
Authority, Phase III Recycled Water
Project, Ser A, RB (A) (B) (C)
5.000%, 05/08/00 10,345 10,345
Western Placer, Unified School
District, TRAN
4.125%, 10/01/00 2,665 2,670
Westminster, Civic Center
Refinancing Program,
Ser A, COP, AMBAC (A) (B)
4.950%, 05/08/00 4,200 4,200
Westminster, Redevelopment
Agency, Commercial
Redevelopment Project,
TA, AMBAC (A) (B)
4.950%, 05/08/00 14,020 14,020
Yorba Linda, Redevelopment
Agency, Redevelopment Project,
Ser A, TA
4.000%, 12/01/00 705 705
---------
523,834
---------
See accompanying notes to financial statements.
14
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (concluded)
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Puerto Rico (4.8%)
Puerto Rico Commonwealth,
GO Pre-Refunded @ 102 (D)
7.700%, 07/01/00 $ 2,250 $ 2,310
Puerto Rico, Municipal Finance
Authority, Ser B, GO
5.000%, 08/01/00 22,805 22,865
---------
25,175
---------
Total Municipal Bonds
(Cost $549,009) 549,009
---------
Total Investments (104.1%)
(Cost $549,009) 549,009
---------
Other Assets and Liabilities, Net (-4.1%) (21,578)
---------
Value
------------------------------------------------------------------------------
Net Assets:
Fund Shares -- Institutional Class
(unlimited authorization -- $0.01
par value) based on 13,829,294
outstanding shares of beneficial
interest 13,829
Fund Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 511,326,198 outstanding
shares of beneficial interest 511,326
Fund Shares -- Class S
(unlimited authorization --
$0.01 par value) based on
2,278,160 outstanding
shares of beneficial interest 2,278
Distribution in excess of net
investment income (5)
Accumulated net realized gain
on investments 3
--------
Total Net Assets (100.0%) $527,431
========
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 APRIL 30, 2000.
(B) PUT AND DEMAND FEATURE -- THE DATE REPORTED ON THE STATEMENT OF NET
ASSETS IS THE EARLIER OF THE MATURITY DATE OR THE 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
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA -- FINANCIAL SECURITY ASSISTANCE
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.
15
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CORPORATE BOND FUND
Face
Amount Value
(000) (000)
------------------------------------------------------------------------------
U.S. Treasury Obligation (7.3%)
U.S. Treasury Note
6.000%, 08/15/09 $1,500 $ 1,467
Total U.S. Treasury Obligation
(Cost $1,483) 1,467
-------
Corporate Bonds (74.0%)
Aerospace & Defense (1.0%)
Lockheed Martin
6.750%, 03/15/03 200 193
-------
Automotive (2.4%)
Daimler Chrysler
7.200%, 09/01/09 500 486
-------
Banks (14.1%)
Banc One
6.400%, 08/01/02 600 584
Bank of America
7.125%, 05/01/06 100 97
7.125%, 03/01/09 600 575
Chase Manhattan Bank
7.000%, 06/01/05 200 194
Deutsche Bank
7.500%, 04/25/09 500 483
First Union
7.100%, 08/15/04 600 587
7.125%, 10/15/06 100 96
Norwest
6.500%, 06/01/05 125 119
Shawmut Bank
8.625%, 02/15/05 100 103
-------
2,838
-------
Electrical Services (9.9%)
Con Edison
7.625%, 03/01/04 100 99
Florida Power
6.000%, 07/01/03 250 240
Georgia Power
6.350%, 08/01/03 100 97
Iowa Electric Light and Power
6.000%, 10/01/08 200 181
Otter Tail Power
7.250%, 08/01/02 186 185
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
Pacific Gas and Electric
6.250%, 08/01/03 $ 200 $ 192
Potomac Electric Power
5.625%, 10/15/03 150 141
Public Service Electric & Gas
6.125%, 08/01/02 300 290
Southern California Edison Electric
5.625%, 10/01/02 100 96
5.875%, 09/01/04 300 275
Tampa Electric
6.125%, 05/01/03 100 97
Wisconsin Power & Light
7.600%, 07/01/05 100 100
-------
1,993
-------
Electric Products (0.5%)
Emerson Electric
6.300%, 11/01/05 100 96
-------
Entertainment (0.5%)
Walt Disney
6.750%, 03/30/06 100 97
-------
Financial Services (13.4%)
Associates Corporation of North America
5.800%, 04/20/04 500 466
Cit Group Holdings
7.125%, 10/15/04 600 585
Countrywide Funding
8.250%, 07/15/02 60 61
6.280%, 01/15/03 100 96
General Electric Capital
6.650%, 09/03/02 500 493
General Motors Capital MTN
6.500%, 10/18/02 500 488
Norwest Financial
6.125%, 08/01/03 200 192
6.000%, 02/01/04 100 95
Texaco Capital
8.625%, 06/30/10 200 213
-------
2,689
-------
Food, Beverage & Tobacco (0.5%)
Campbell Soup
5.625%, 09/15/03 100 94
-------
See accompanying notes to financial statements.
16
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CORPORATE BOND FUND (continued)
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Insurance (1.9%)
Aetna Services
6.375%, 08/15/03 $ 150 $ 144
American General
6.250%, 03/15/03 250 241
-------
385
-------
Investment Banker/Broker Dealer (2.3%)
JP Morgan
6.250%, 12/15/05 150 139
Merrill Lynch
7.375%, 05/15/06 100 96
Morgan Stanley Dean Witter
6.375%, 12/15/03 100 96
7.760%, 06/22/04 130 131
-------
462
-------
Leasing & Renting (1.9%)
International Lease Finance
6.375%, 08/01/02 400 389
-------
Medical Products & Services (1.7%)
Baxter International
7.125%, 02/01/07 150 146
Warner-Lambert
6.625%, 09/15/02 200 197
-------
343
-------
Personal Credit Institutions (1.4%)
Ford Motor Credit
6.625%, 06/30/03 100 97
6.750%, 05/15/05 100 95
6.375%, 12/15/05 100 93
-------
285
-------
Petroleum Refining (0.5%)
Shell Oil
6.700%, 08/15/02 100 99
-------
Railroads (1.4%)
Union Pacific
6.125%, 01/15/04 300 280
-------
Retail (5.3%)
Gap
6.900%, 09/15/07 200 194
Sears Roebuck Acceptance
6.700%, 11/15/06 100 92
Face
Amount Value
(000) (000)
--------------------------------------------------------
Wal-Mart Stores
6.375%, 03/01/03 $ 150 $ 147
6.550%, 08/10/04 500 486
5.875%, 10/15/05 150 140
-------
1,059
-------
Steel & Steel Works (2.0%)
ALCOA
5.750%, 02/01/01 400 396
-------
Telephones & Telecommunications (13.3%)
AT&T
5.625%, 03/15/04 150 141
7.000%, 05/15/05 100 98
6.000%, 03/15/09 125 111
Bell Atlantic of New Jersey
5.875%, 02/01/04 100 95
Bell Telephone of Pennsylvania
4.750%, 05/01/01 100 98
6.125%, 03/15/03 100 96
BellSouth Telecommunications
6.250%, 05/15/03 300 290
6.375%, 06/15/04 100 96
Carolina Telephone & Telegraph
6.125%, 05/01/03 250 239
Chesapeake & Potomac
Telephone of Maryland
6.000%, 05/01/03 200 192
GTE Florida
6.250%, 11/15/05 200 187
New York Telephone
5.625%, 11/01/03 100 94
6.500%, 03/01/05 250 238
Pacific Bell Telephone
6.250%, 03/01/05 200 190
United Telephone of Ohio
6.625%, 10/01/02 100 98
United Telephone of Florida
6.250%, 05/15/03 100 96
U.S. West Communications
6.125%, 11/15/05 350 322
-------
2,681
-------
Total Corporate Bonds
(Cost $15,364) 14,865
-------
See accompanying notes to financial statements.
17
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CORPORATE BOND FUND (concluded)
Shares/Face
Amount Value
(000) (000)
------------------------------------------------------------------------------
U.S. Government Agency Obligations (7.3%)
FHLMC
6.500%, 03/15/26 $ 50 $ 48
FNMA
7.250%, 01/15/10 1,000 996
FNMA MTN
6.000%, 07/17/01 425 421
-------
Total U.S. Government Agency Obligations
(Cost $1,482) 1,465
-------
Yankee Bonds (1.8%)
Nova Scotia
9.375%, 07/15/02 134 140
Ontario
6.000%, 02/21/06 250 231
-------
Total Yankee Bonds
(Cost $377) 371
-------
Cash Equivalents (6.0%)
Fidelity Colchester Domestic Money
Market Portfolio, Class I 634,378 634
SEI Daily Income Trust Prime
Obligation Fund 565,542 566
-------
Total Cash Equivalents
(Cost $1,200) 1,200
-------
Total Investments (96.4%)
(Cost $19,906) 19,368
-------
Other Assets and Liabilities, Net (3.6%) 726
-------
Value
(000)
--------------------------------------------------------
Net Assets:
Fund Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 2,020,557
outstanding shares of beneficial
interest $20,631
Fund Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 110 outstanding shares
of beneficial interest 1
Net unrealized depreciation
on investments (538)
--------
Total Net Assets (100.0%) $ 20,094
========
Net Asset Value, Offering and
Redemption Price Per Share
-- Institutional Class $9.94
========
Net Asset Value, Offering
and Redemption
Price Per Share -- Class A $9.95
========
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
See accompanying notes to financial statements.
18
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
GOVERNMENT BOND FUND
Face
Amount Value
(000) (000)
------------------------------------------------------------------------------
U.S. Treasury Obligations (21.2%)
U.S. Treasury Notes
6.000%, 08/15/00 $ 15 $ 15
6.625%, 04/30/02 100 100
6.250%, 08/31/02 50 50
6.250%, 02/15/03 225 223
5.750%, 08/15/03 425 414
6.500%, 10/15/06 150 150
6.250%, 02/15/07 200 197
6.125%, 08/15/07 200 196
5.500%, 02/15/08 80 75
6.000%, 08/15/09 850 831
-------
Total U.S. Treasury Obligations
(Cost $2,292) 2,251
-------
U.S. Government Agency Obligations (77.1%)
FFCB
6.100%, 11/19/01 150 148
FHLB
6.020%, 07/27/01 1,000 990
5.820%, 08/20/01 300 296
5.290%, 01/11/02 250 243
5.440%, 03/01/02 150 146
5.480%, 04/09/02 400 388
5.530%, 04/12/02 400 388
6.250%, 07/12/02 500 490
6.575%, 07/19/02 500 493
5.760%, 09/18/02 250 242
6.500%, 04/25/03 100 98
6.430%, 07/19/04 1,000 965
6.910%, 12/28/04 200 195
6.125%, 03/22/06 250 234
5.810%, 03/26/09 400 360
FHLMC
4.750%, 12/14/01 335 323
5.560%, 12/30/02 200 192
6.120%, 01/21/03 600 583
6.175%, 03/08/04 250 240
7.010%, 07/13/06 500 483
FNMA
7.000%, 03/25/20 28 28
7.000%, 01/25/21 70 70
7.000%, 03/25/21 33 32
<PAGE>
Shares/Face
Amount Value
(000) (000)
--------------------------------------------------------
FNMA MTN
6.000%, 07/17/01 $ 500 $ 495
6.700%, 05/06/02 75 74
-------
Total U.S. Government Agency Obligations
(Cost $8,443) 8,196
-------
Cash Equivalents (0.5%)
Fidelity Colchester Domestic Money
Market Portfolio, Class I 33,664 34
SEI Daily Income Trust Prime
Obligation Fund 25,007 25
-------
Total Cash Equivalents
(Cost $59) 59
-------
Total Investments (98.8%)
(Cost $10,794) 10,506
-------
Other Assets and Liabilities, Net (1.2%) 128
-------
Net Assets:
Fund Shares -- Institutional Class
(unlimited authorization --
$0.01 par value) based on
1,064,431 outstanding
shares of beneficial interest 11,039
Fund Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 110 outstanding
shares of beneficial interest 1
Undistributed net investment income 1
Accumulated net realized loss
on investments (119)
Net unrealized depreciation
on investments (288)
-------
Total Net Assets (100.0%) $10,634
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $9.99
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $9.99
=======
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.
19
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
Municipal Bonds (98.3%)
California (88.6%)
Acalanes, Unified School
District, GO, MBIA
Callable 08/01/2000 @ 102
4.900%, 08/01/03 $100 $ 100
Anaheim, Convention Center
Project, COP, MBIA
Callable 08/01/02 @ 102
5.800%, 08/01/03 200 205
Berkeley, GO, AMBAC
4.250%, 06/01/00 90 90
Berkeley, Ser C, GO, MBIA
Callable 09/01/05 @ 102
5.000%, 09/01/10 95 94
Berkeley, Unified School
District, GO, FGIC
4.375%, 08/01/01 250 250
Beverly Hills, Unified School
District, Ser B, GO
Callable 06/01/08 @ 101
4.700%, 06/01/13 50 46
Buena Park, Unified School
District, Ser A, GO, FSA
Callable 08/01/09 @ 102
4.500%, 08/01/12 285 261
Burbank, Unified School
District, GO, FGIC
Callable 08/01/07 @ 101
4.400%, 08/01/08 140 134
California, Health Facilities
Financial Authority, Catholic
Healthcare West Project,
Ser A, RB, MBIA
4.125%, 07/01/02 140 138
California State, GO
4.200%, 09/01/02 200 199
4.750%, 10/01/05 250 250
California State, Department Water
Reserve Project, Ser L, RB
Callable 06/01/03 @ 101.50
5.200%, 12/01/06 175 177
California State, Department Water
Reserve Project, Ser J, RB
5.500%, 12/01/01 100 102
Face
Amount Value
(000) (000)
--------------------------------------------------------
California State, Educational
Facilities Authority, Pomona
College Project, RB
Callable 02/15/02 @ 102
6.125%, 02/15/08 $200 $ 208
City of Oakland, TRAN
4.250%, 09/29/00 150 150
Contra Costa, Water District
Authority, Ser A, RB
Pre-Refunded @ 102 (A)
7.000%, 10/01/00 200 206
Contra Costa, Water District
Authority, Ser G, RB, MBIA
Callable 10/01/04 @ 102
5.700%, 10/01/06 100 105
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%, 12/01/01 150 157
East Bay, Municipal Utilities District
Authority, Wastewater Treatment
System, RB Callable 06/01/08 @ 101
4.400%, 06/01/09 200 189
East Bay, Municipal Utilities District
Authority, Wastewater Treatment
System, RB, FGIC
4.200%, 06/01/02 75 75
Fontana, COP, AMBAC
3.350%, 09/01/00 275 274
Laguna Salada, Unified School
District, Ser B, GO, FGIC
4.450%, 08/01/08 200 192
Long Beach, Water District Authority,
Ser A, RB, MBIA
4.150%, 05/01/03 100 98
Los Angeles, Harbour Development
Project, Ser C, RB
Callable 11/01/06 @ 101
5.125%, 11/01/11 180 180
See accompanying notes to financial statements.
20
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (continued)
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
Los Angeles, Metropolitan
Transportation Sales Tax First
Tier Project, Ser A, RB, MBIA
Callable 07/01/07 @ 101
5.125%, 07/01/09 $150 $ 151
Los Angeles, Parking Project,
Ser A, RB, AMBAC
4.100%, 05/01/08 100 93
Los Angeles, Schools Regionalized
Business Services, Local
Educational Agency Pooled
Capital Project, Ser B, COP, MBIA
4.750%, 07/01/07 100 99
Los Angeles, Ser C, GO
4.600%, 09/01/03 200 200
Los Angeles County, Public Works
Finance Authority, Capital
Construction Project, RB
Callable 03/01/03 @ 102
4.900%, 03/01/05 100 101
Metropolitan Water District, Southern
California Waterworks Authority,
RB Pre-Refunded @ 102 (A)
6.500%, 07/01/01 100 104
Metropolitan Water District, Southern
California Waterworks Authority,
Ser A, RB
5.500%, 07/01/08 400 416
Modesto, Irrigation District Authority,
Domestic Water Project, Ser D, RB,
AMBAC Callable 09/01/08 @ 101
5.000%, 09/01/12 100 98
Moulton-Niguel, Water Conservation
Improvement District, GO, MBIA
Callable 09/01/03 @ 102
5.300%, 09/01/07 100 102
Mountain View, Capital Improvement
Authority, City Hall/Community
Theatre Project, RB, MBIA
6.000%, 08/01/01 100 102
Napa County, Flood Protection &
Watershed Improvement Authority,
Ser A, RB, FGIC Callable
06/15/09 @ 101
4.600%, 06/15/10 400 382
Face
Amount Value
(000) (000)
--------------------------------------------------------
Oak Park, Unified School District,
GO, AMBAC
Callable 05/01/02 @ 102
6.000%, 05/01/04 $100 $ 104
Orange County, Local Transportation
Sales Tax Authority, Ser A, RB
5.250%, 02/15/05 500 510
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%, 07/01/13 100 103
Pleasanton, Unified School District,
GO, FGIC Callable 08/01/05 @ 101
4.100%, 08/01/10 100 90
Rancho, Water District Authority,
RB, FGIC Callable 08/01/02 @ 101
4.700%, 08/01/04 200 200
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%, 01/01/05 100 103
Sacramento, Municipal Utilities
District, Ser Z, RB, FGIC
Callable 07/01/01 @ 102
6.250%, 07/01/04 100 104
Sacramento County, Sanitation
District, RB
4.300%, 12/01/00 75 75
San Bernardino County,
Ser A, TRAN, MBIA
4.875%, 03/01/03 170 171
San Diego, Community College
Project, COP, MBIA
Callable 12/01/01 @ 102
6.400%, 12/01/02 200 210
See accompanying notes to financial statements.
21
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (continued)
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
San Diego, Unified School
District, Capital Projects Phase XI,
Ser A, COP
4.000%, 07/01/00 $ 50 $ 50
San Diego County, East Mesa,
COP, AMBAC
4.750%, 10/01/09 100 98
San Diego County, Water District
Authority, Ser A, COP
Pre-Refunded @ 102 (A)
6.300%, 05/01/01 200 208
San Diego, Water Utility System,
RB, FGIC
4.250%, 08/01/06 200 192
San Francisco City & County,
GO, MBIA Callable 06/15/01 @ 102
5.250%, 06/15/06 80 81
San Francisco City & County,
Airport Common International
Project, Ser 15B, RB, FSA
Callable 01/01/08 @ 102
4.600%, 05/01/13 100 91
San Francisco City & County,
Airport Common International
Project, Ser 20, RB, MBIA
Callable 05/01/08 @ 101
4.500%, 05/01/10 350 329
San Jose, Redevelopment Agency,
Merged Area Project, Ser A, TA,
MBIA Callable 08/01/00 @ 102 (B)
6.000%, 08/01/01 100 102
San Marino, Unified School
District, Ser B, GO
4.400%, 07/01/07 100 96
San Mateo County, Transportation
Authority, Ser A, RB, MBIA
4.100%, 06/01/03 100 98
San Juan Capistrano, Open Space
Program, Ser A, GO
Pre-Refunded @ 102 (A)
6.400%, 07/15/00 200 205
Santa Barbara, Municipal
Improvement Program, COP,
AMBAC Callable 08/01/09 @ 102
5.400%, 08/01/03 100 102
Face
Amount Value
(000) (000)
--------------------------------------------------------
Santa Barbara, Redevelopment
Agency, Central City Project,
Ser A, TA, AMBAC
4.750%, 03/01/04 $100 $ 100
Santa Monica, Community
College, Ser C, GO
Callable 08/01/09 @ 102
4.500%, 08/01/13 190 170
Sonoma County, Detention Facilities
Improvement Program,
COP, AMBAC
4.500%, 11/15/03 200 199
South Coast, Water District Authority,
GO, AMBAC Callable 07/01/01
@ 100.375
6.400%, 07/01/04 175 179
South Coast, Water District Authority,
GO, AMBAC
Callable 07/01/01 @ 100.5
6.500%, 07/01/05 100 103
South Orange County, Public
Financing Authority, Foothill Area
Project, Ser C, RB, FGIC
5.125%, 08/15/02 100 101
Stanislaus County, Capital
Improvement Project,
Ser A, COP, MBIA
4.625%, 05/01/03 100 100
Turlock, Irrigation District Authority,
Ser A, RB, MBIA
Callable 07/01/02 @ 102
6.000%, 01/01/03 100 103
University of California, Multiple
Purpose Project, Ser B,
RB, MBIA Callable
09/01/03 @ 102
4.600%, 09/01/05 100 99
University of California, Medical
Center Project, RB, AMBAC
Callable 07/01/06 @ 101
5.750%, 07/01/13 500 511
Upland, Water Systems Project,
COP, FGIC Callable 08/01/02 @ 102
6.300%, 08/01/04 100 105
-------
11,203
-------
See accompanying notes to financial statements.
22
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED) CALIFORNIA TAX EXEMPT BOND FUND
(concluded)
Face
Amount Value
(000) (000)
-------------------------------------------------------------------------------
Illinois (3.3%)
Illinois State, Toll Highway Authority,
Highway Priority Project, Ser A, RB
Pre-Refunded @ 102
6.375%, 01/01/03 $400 $ 421
-------
Puerto Rico (6.4%)
Puerto Rico Commonwealth,
Highway & Transportation Authority,
Ser X, RB, MBIA
5.100%, 07/01/03 600 606
Puerto Rico, Electric Power Authority
Power Project, Ser D, RB, FSA
5.000%, 07/01/05 200 201
-------
807
-------
Total Municipal Bonds
(Cost $12,467) 12,431
-------
Total Investments (98.3%)
(Cost $12,467) 12,431
-------
Other Assets and Liabilities, Net (1.7%) 212
-------
Net Assets:
Fund Shares -- Institutional Class
(unlimited authorization --
$0.01 par value)
based on 1,261,499 outstanding
shares of beneficial interest 12,695
Fund Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 110 outstanding shares of
beneficial interest 1
Undistributed net investment income 2
Accumulated net realized loss
on investments (19)
Net unrealized depreciation
on investments (36)
-------
Total Net Assets (100.0%) $12,643
=======
Value
------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $10.02
-------
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $10.02
=======
(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.
23
<PAGE>
SCHEDULE OF INVESTMENTS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
HIGH YIELD BOND FUND
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
Corporate Bonds (72.9%)
Broadcasting, Newspapers & Advertising (6.5%)
Adelphia Cable Communications
10.500%, 07/15/04 $ 100 $ 101
Diva Systems (B)
17.710%, 03/01/08 200 110
Frontiervision (B)
10.980%, 09/15/07 150 130
Olympus Communications (A)
10.625%, 11/15/06 100 99
United International Holdings (B)
10.900%, 02/15/08 100 65
-------
505
-------
Building & Construction (2.2%)
Brand Scaffold Services
10.250%, 02/15/08 200 174
-------
Communications Equipment (9.4%)
Aavid Thermal Technology (A)
12.750%, 02/01/07 100 97
Cumulus Media
10.375%, 07/01/08 200 181
Insight Midwest (A)
9.750%, 10/01/09 250 253
Williams Communications
10.875%, 10/01/09 200 201
-------
732
-------
Entertainment (8.3%)
Boyd Gaming
9.500%, 07/15/07 250 236
Hard Rock Hotel (A)
9.250%, 04/01/05 200 177
Imax
7.875%, 12/01/05 150 136
Park Place Entertainment (A)
9.375%, 02/15/07 100 99
-------
648
-------
Financial Services-Special
Purpose Acquisition (1.3%)
DTI Holdings (B)
17.500%, 03/01/08 250 105
-------
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
Food, Beverage & Tobacco (2.5%)
National Wine & Spirits
10.125%, 01/15/09 $ 200 $ 191
-------
Paper & Paper Products (3.7%)
Four M
12.000%, 06/01/06 100 97
Riverwood International
10.875%, 04/01/08 200 192
-------
289
-------
Petroleum & Fuel Products (5.7%)
Huntsman ICI Chemicals
10.125%, 07/01/09 200 200
Ocean Energy
8.875%, 07/15/07 100 99
Pride Petroleum Services
9.375%, 05/01/07 150 147
-------
446
-------
Printing & Publishing (7.0%)
Citadel Broadcasting
9.250%, 11/15/08 100 96
Jordan Industries
10.375%, 08/01/07 200 186
Tritel PCS (B)
11.770%, 05/15/09 250 165
TV Guide
8.125%, 03/01/09 100 99
-------
546
-------
Garden Products (1.2%)
Scotts (A)
8.625%, 01/15/09 100 94
-------
Retail (3.8%)
CKE Restaurants
9.125%, 05/01/09 200 112
Pantry
10.250%, 10/15/07 200 183
-------
295
-------
See accompanying notes to financial statements.
24
<PAGE>
SCHEDULE OF INVESTMENTS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
HIGH YIELD BOND FUND (concluded)
Face
Amount Value
(000) (000)
--------------------------------------------------------------------------------
Rubber & Plastic (1.3%)
Norampac
9.500%, 02/01/08 $100 $ 101
------
Steel & Steel Works (2.5%)
Algoma Steel
12.375%, 07/15/05 100 99
Oxford Automotive
10.125%, 06/15/07 100 93
------
192
------
Telephones & Telecommunications (17.5%)
GT Group Telecommunications,
Senior Discount Notes + 1 warrant
to buy 4.9106 Class B Shares (A) (B)
13.250%, 02/01/10 200 107
Metromedia Fiber Network
10.000%, 12/15/09 100 95
Nextel Communications (B)
10.940%, 09/15/07 250 189
Nextel Partners (B)
12.280%, 02/01/09 130 86
Telecorp PCS (B)
11.630%, 04/15/09 200 131
Telewest Communications PLC (B)
8.610%, 10/01/07 150 141
Teligent (B)
13.160%, 03/01/08 200 104
Triton PCS (B)
9.780%, 05/01/08 200 144
Voicestream Wire (A)
10.375%, 11/15/09 250 254
Winstar Communications (A)
12.750%, 04/15/10 51 49
Winstar Communications (A) (B)
13.820%, 04/15/10 149 67
-------
1,367
-------
Total Corporate Bonds
(Cost $5,785) 5,685
-------
Shares/Face
Amount Value
(000) (000)
--------------------------------------------------------
Convertible Bond (1.9%)
Key Energy Group, Convertible
to 25.9740 Shares
5.000%, 09/15/04 $ 200 $ 145
-------
Total Convertible Bond
(Cost $150) 145
-------
Warrants (1.5%)
Aavid Thermal Technology,
Expires 02/01/07 (A)* 100 --
Diva Systems, Expires
01/01/10 (A)* 200 120
Diva Systems, Expires
03/01/08 (A)* 600 --
DTI Holdings, Expires
03/01/08 (A)* 1,250 --
-------
Total Warrants
(Cost $89) 120
-------
Cash Equivalents (8.3%)
Fidelity Colchester Domestic
Money Market Portfolio,
Class I 323,960 324
SEI Daily Income Trust Prime
Obligation Fund 323,962 324
-------
Total Cash Equivalents
(Cost $648) 648
-------
Total Investments (84.6%)
(Cost $6,672) 6,598
-------
Other Assets and Liabilities, Net (15.4%) 1,198
-------
Total Net Assets (100.0%) $7,796
=======
*NON-INCOME PRODUCING SECURITY
(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 APRIL 30, 2000. THE COUPON ON A STEP BOND CHANGES ON A
SPECIFIC DATE.
See accompanying notes to financial statements.
25
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
LARGE CAP VALUE EQUITY FUND
Value
Shares (000)
--------------------------------------------------------------------------------
Common Stocks (97.8%)
Air Transportation (0.9%)
Delta Air Lines 4,500 $ 237
-------
Aerospace & Defense (0.2%)
Boeing 780 31
United Technologies 470 29
-------
60
-------
Automotive (2.0%)
Delphi 2,675 51
Ford Motor 1,940 106
General Motors 3,850 360
-------
517
-------
Banks (9.6%)
Bank of America 8,827 433
Bank of New York 390 16
Bank One 9,440 288
Chase Manhattan 5,500 396
Citigroup 2,750 163
Comerica 5,300 225
Fifth Third Bancorp 3,550 224
First Union 2,050 65
State Street 3,530 342
Wachovia 3,800 238
Wells Fargo 1,230 51
-------
2,441
-------
Beauty Products (0.9%)
Procter & Gamble 3,800 227
-------
Biotechnology (0.2%)
Pharmacia 990 49
-------
Broadcasting, Newspapers
& Advertising (2.6%)
CBS* 9,775 574
Comcast, Cl A* 1,075 43
MediaOne Group* 590 45
-------
662
-------
Value
Shares (000)
--------------------------------------------------------------------------------
Chemicals (3.5%)
Air Products & Chemicals 7,400 $ 230
Dow Chemical 1,015 115
E.I. du Pont de Nemours 330 16
Engelhard 11,700 205
Praxair 4,800 213
Sigma Aldrich 3,940 116
-------
895
-------
Computers & Services (3.5%)
IBM 7,950 887
-------
Drugs (3.5%)
Bristol-Myers Squibb 7,175 376
Merck 5,050 351
Pfizer 3,825 161
-------
888
-------
Electric Products (0.1%)
Emerson Electric 500 27
-------
Electrical Services (3.4%)
AES* 2,520 227
Edison International 8,800 168
FirstEnergy 9,700 247
Texas Utilities 6,300 212
-------
854
-------
Entertainment (0.2%)
Walt Disney 970 42
-------
Financial Services (8.2%)
American Express 4,975 747
Associates First Capital 10,890 242
Fannie Mae 7,700 464
Freddie Mac 7,330 337
MBNA 10,740 285
-------
2,075
-------
Food, Beverage & Tobacco (2.7%)
Adolph Coors, Cl B 1,940 99
Anheuser Busch 5,000 353
Coca-Cola 4,975 234
-------
686
-------
See accompanying notes to financial statements.
26
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
LARGE CAP VALUE EQUITY FUND (continued)
Value
Shares (000)
-----------------------------------------------------------------------------
Investment Banker/Broker Dealer (1.7%)
JP Morgan 3,150 $ 404
Merrill Lynch 280 29
------
433
------
Gas/Natural Gas (1.7%)
El Paso Energy 5,500 234
Nicor 6,100 207
------
441
------
Household Products (3.7%)
General Electric 6,000 943
------
Insurance (5.8%)
Allstate 10,600 250
American International Group* 2,722 299
Hartford Financial Services Group 4,800 250
Lincoln National 13,400 466
Marsh & McLennan 360 35
Torchmark 4,320 108
Unitedhealth Group 730 49
------
1,457
------
Machinery (0.1%)
Nacco Industries, Cl A 570 26
------
Metals & Mining (0.4%)
Freeport-McMoran Copper
& Gold, Cl B* 10,700 103
------
Office Supplies & Forms (0.3%)
Avery Dennison 950 62
------
Office Machine (2.2%)
Minnesota Mining & Manufacturing 6,540 566
------
Paper & Paper Products (1.7%)
Georgia-Pacific 5,070 186
International Paper 6,475 238
------
424
------
Petroleum & Fuel Products (2.2%)
Rowan* 8,000 224
Schlumberger 450 34
Union Pacific Resources Group 15,600 299
------
557
------
Value
Shares (000)
-------------------------------------------------------------------------------
Petroleum Refining (10.4%)
BP Amoco, ADR 328 $ 17
Chevron 4,800 409
Conoco 5,850 146
Enron 2,690 187
Exxon Mobil 16,130 1,253
Royal Dutch Petroleum 1,870 107
Texaco 6,390 316
USX-Marathon Group 8,800 205
--------
2,640
--------
Prepackaging Software (1.2%)
Computer Associates International 5,625 314
--------
Printing & Publishing (2.9%)
Gannett 4,025 257
Harcourt General 1,940 73
McGraw-Hill 7,425 390
--------
720
--------
Railroads (0.2%)
Union Pacific 1,320 56
--------
Retail (3.8%)
May Department Stores 6,120 168
McDonald's 9,135 348
Target 6,580 438
--------
954
--------
Semi-Conductors/Instruments (7.0%)
Intel 13,925 1,766
--------
Steel & Steel Works (0.6%)
Bethlehem Steel* 26,400 142
--------
Telephones & Telecommunications (10.4%)
Bell Atlantic 8,600 510
Centurytel 5,100 125
GTE 3,450 234
MCI WorldCom* 11,015 500
SBC Communications 5,200 228
Sprint (FON Group) 7,100 437
Sprint (PCS Group)* 3,000 165
US WEST 6,050 431
-----
2,630
------
See accompanying notes to financial statements.
27
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
LARGE CAP VALUE EQUITY FUND (concluded)
Value
Shares (000)
--------------------------------------------------------------------------------
Total Common Stocks
(Cost $15,836) $24,781
-------
Cash Equivalents (2.2%)
Fidelity Colchester Domestic
Money Market Portfolio,
Class I 318,846 319
SEI Daily Income Trust Prime
Obligation Fund 237,532 238
-------
Total Cash Equivalents
(Cost $557) 557
-------
Total Investments (100.0%)
(Cost $16,393) 25,338
-------
Other Assets and Liabilities, Net (0.0%) (1)
-------
Value
(00)
-------------------------------------------------------------------------------
Net Assets:
Fund Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 2,672,605 outstanding
shares of beneficial interest $14,151
Fund Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 114 outstanding shares
of beneficial interest 1
Undistributed net investment income 6
Accumulated net realized gain
on investments 2,234
Net unrealized appreciation
on investments 8,945
-------
Total Net Assets (100.0%) $25,337
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $9.48
======
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $9.48
======
*NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
See accompanying notes to financial statements.
28
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
LARGE CAP GROWTH EQUITY FUND
Value
Shares (000)
-------------------------------------------------------------------------------
Common Stocks (96.8%)
Aerospace & Defense (1.2%)
Boeing 7,200 $ 286
------
Beauty Products (2.0%)
Colgate-Palmolive 3,600 206
Gillette 1,930 71
Procter & Gamble 3,040 181
------
458
------
Computers & Services (20.3%)
Cisco Systems* 20,950 1,452
Dell Computer* 14,165 710
EMC* 4,610 640
Gateway* 4,200 232
IBM 7,500 837
Solectron* 7,200 337
Sun Microsystems* 5,200 478
------
4,686
------
Consumer Products (0.5%)
Pennzoil-Quaker State 10,000 109
------
Containers Paper & Plastic (1.0%)
Sealed Air* 4,090 227
------
Diversified Manufacturing Operations (1.3%)
Tyco International Limited 6,410 294
------
Drugs (12.5%)
Abbott Laboratories 10,995 423
Bristol-Myers Squibb 4,915 258
Eli Lilly 6,730 520
Johnson & Johnson 3,495 288
Merck 10,355 720
Schering Plough 9,440 381
Warner Lambert 2,585 294
------
2,884
------
Electrical Services (1.1%)
AES* 2,800 252
------
Electrical Technology (0.4%)
Energizer Holdings* 5,980 102
------
Entertainment (2.5%)
Time Warner 6,380 574
------
Value
Shares (000)
-------------------------------------------------------------------------------
Financial Services (1.2%)
MBNA 10,000 $ 266
------
Food, Beverage & Tobacco (4.7%)
Coca-Cola 6,180 291
Coca-Cola Enterprises 15,900 339
Ralston Purina Group 17,940 317
Unilever NV* 3,105 141
------
1,088
------
Household Products (5.1%)
General Electric 7,425 1,168
------
Internet Service Providers (1.8%)
America Online* 2,150 129
Yahoo!* 2,200 287
------
416
------
Medical Products & Services (1.9%)
Guidant* 3,900 224
Medtronic 3,970 206
------
430
------
Metals & Mining (0.5%)
Freeport-McMoran Copper
& Gold, Cl B* 12,600 121
------
Prepackaging Software (13.0%)
Adobe Systems 2,060 249
BMC Software* 8,300 389
Computer Associates International 5,410 302
Compuware* 8,900 112
Microsoft* 13,065 911
Oracle Systems* 11,230 898
PeopleSoft* 8,800 123
------
2,984
------
Professional Services (0.1%)
Paychex 570 30
------
Retail (6.6%)
Best Buy* 1,400 113
Gap 670 25
Home Depot 6,900 387
Wal-Mart Stores 17,975 995
------
1,520
------
See accompanying notes to financial statements.
29
<PAGE>
STATEMENT OF NET ASSETS
CNI CHARTER FUNDS -- APRIL 30, 2000 (UNAUDITED)
LARGE CAP GROWTH EQUITY FUND (concluded)
Value
Shares (000)
-------------------------------------------------------------------------------
Semi-Conductors/Instruments (8.1%)
Applied Materials* 1,620 $ 165
Intel 9,475 1,202
Texas Instruments 3,015 491
------
1,858
------
Telephones & Telecommunications (11.0%)
Lucent Technologies 13,965 868
MCI WorldCom* 4,500 204
QUALCOMM* 2,900 314
SBC Communications 16,847 738
Tellabs* 7,600 417
------
2,541
------
Total Common Stocks
(Cost $19,533) 22,294
------
Cash Equivalents (2.4%)
Fidelity Colchester Domestic
Money Market Portfolio,
Class I 298,886 299
SEI Daily Income Trust
Prime Obligation Fund 243,805 244
------
Total Cash Equivalents
(Cost $543) 543
------
Total Investments (99.2%)
(Cost $20,076) 22,837
------
Other Assets and Liabilities, Net (0.8%) 186
------
Value
(000)
-------------------------------------------------------------------------------
Net Assets:
Fund Shares -- Institutional Class
(unlimited authorization -- $0.01 par
value) based on 2,277,802 outstanding
shares of beneficial interest $20,235
Fund Shares -- Class A (unlimited
authorization -- $0.01 par value)
based on 1,626 outstanding
shares of beneficial interest 16
Accumulated net investment loss (21)
Accumulated net realized gain
on investments 32
Net unrealized appreciation
on investments 2,761
-------
Total Net Assets (100.0%) $23,023
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $10.10
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $10.10
=======
*NON-INCOME PRODUCING SECURITY
See accompanying notes to financial statements.
30
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
CNI CHARTER FUNDS -- AS OF APRIL 30, 2000 (UNAUDITED)
High Yield
Bond Fund
(000)
--------------------------------------------------------------------------------
ASSETS:
Investments at value (Cost $6,672) $ 6,598
Cash 177
Receivable for fund shares sold 1,005
Accrued income 123
-------
Total Assets 7,903
-------
LIABILITIES:
Investment securities purchased 99
Dividend income payable 2
Accrued expenses 6
-------
Total Liabilities 107
-------
Net Assets: $7,796
-------
NET ASSETS:
Fund Shares -- Institutional Class (unlimited
authorization -- $0.01 par value) based on
653,954 outstanding shares of beneficial
interest 6,535
Fund Shares -- Class A (unlimited authorization --
$0.01 par value) based on 133,699
outstanding shares of beneficial interest 1,333
Undistributed net investment income 3
Accumulated net realized loss on investments (1)
Net unrealized depreciation on investments (74)
-------
TOTAL NET ASSETS $7,796
=======
Net Asset Value, Offering and Redemption Price
Per Share -- Institutional Class $9.90
=======
Net Asset Value, Offering and Redemption Price
Per Share -- Class A $9.90
=======
See accompanying notes to financial statements.
31
<PAGE>
STATEMENTS OF OPERATIONS
CNI CHARTER FUNDS -- FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Prime Government California
Money Market Money Market Tax Exempt
Fund Fund Money Market Fund
(000) (000) (000)
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest $6,676 $46,748 $8,977
------- ------- -------
EXPENSES:
Investment Advisory Fees 280 2,083 746
Waiver of Investment Advisory Fees (114) (771) (590)
Administrative Fees 168 799 422
Waiver of Administrative Fees -- (137) (53)
Shareholder Servicing Fees--Institutional Class 200 4 3
Shareholder Servicing Fees--Class A (1) 210 5,985 2,072
Waiver of Shareholder Servicing Fees--Class A (79) (1,716) (646)
Shareholder Servicing Fees--Class S (1) 32 21 4
Waiver of Shareholder Servicing Fees--Class S (3) (1) --
Custodian Fees 10 66 21
Professional Fees 18 170 63
Transfer Agent Fees 20 16 16
Printing Fees 9 16 6
Trustee Fees 2 11 4
Registration and Filing Fees 18 253 99
Insurance and Other Fees 4 27 11
Organizational Fees 12 -- --
------- ------- -------
Total Expenses 787 6,826 2,178
Reduction of Expenses (2) (1) (16) (16)
------- ------- -------
Net Expenses 786 6,810 2,162
------- ------- -------
NET INVESTMENT INCOME: 5,890 39,938 6,815
------- ------- -------
Net Realized Gain From Security Transactions -- 1 3
------- ------- -------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $5,890 $39,939 $6,818
======= ======= ======
(1) Includes class specific distribution expenses.
(2) See note 3.
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
32
<PAGE>
STATEMENTS OF OPERATIONS
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Corporate Government California High Yield
Bond Bond Tax Exempt Bond
Fund Fund Bond Fund Fund
(000) (000) (000) (000)
---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest $ 365 $ 197 $ 188 $168
----- ----- ----- -----
EXPENSES:
Investment Advisory Fees 22 14 10 13
Waiver of Investment Advisory Fees (10) (10) (10) (6)
Administrative Fees 8 5 5 2
Shareholder Servicing Fees--Institutional Class 13 8 10 4
Waiver of Shareholder Servicing Fees--
Institutional Class -- -- (3) (2)
Shareholder Servicing Fees--Class A (1) -- -- -- 1
Waiver of Shareholder Servicing Fees--Class A -- -- -- --
Custodian Fees 1 -- 1 --
Professional Fees 1 -- 1 --
Transfer Agent Fees 4 4 4 4
Printing Fees -- -- -- --
Trustee Fees -- -- -- --
Registration and Filing Fees 2 1 1 1
Insurance and Other Fees -- -- -- --
----- ----- ----- -----
Net Expenses 41 22 19 17
----- ----- ----- -----
NET INVESTMENT INCOME: 324 175 169 151
----- ----- ----- -----
Net Realized Loss From Security Transactions -- (119) (19) (1)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (109) 84 50 (74)
----- ----- ----- -----
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 215 $ 140 $ 200 $ 76
===== ===== ===== =====
</TABLE>
(1) Includes class specific distribution expenses.
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
33
<PAGE>
STATEMENTS OF OPERATIONS
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
Large Cap Large Cap
Value Equity Growth Equity
Fund Fund
(000) (000)
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend $ 129 $ 44
------- -----
EXPENSES:
Investment Advisory Fees 44 40
Waiver of Investment Advisory Fees (10) (8)
Administrative Fees 11 9
Shareholder Servicing Fees--
Institutional Class 18 16
Shareholder Servicing Fees--Class A (1) -- --
Custodian Fees 1 1
Professional Fees 1 1
Transfer Agent Fees 4 4
Printing Fees -- --
Trustee Fees -- --
Registration and Filing Fees 2 2
Insurance and Other Fees -- --
------- ----
Net Expenses 71 65
------- ----
NET INVESTMENT INCOME (LOSS): 58 (21)
------- ----
Net Realized Gain From Security Transactions 2,234 32
Net Change in Unrealized Appreciation
(Depreciation) on Investments (3,632) 244
------- ----
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $(1,340) $255
======= ====
(1) Includes class specific distribution expenses.
Amounts designated as "--" are either $0 or have been rounded to $0.
--------------------------------------------------------------------------------
See accompanying notes to financial statements.
34
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
CNI CHARTER FUNDS -- FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
AND THE YEAR ENDED OCTOBER 31, 1999.
11/1/99 TO 11/1/98 TO
4/30/00 10/31/99
PRIME MONEY MARKET FUND (000) (000)
--------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 5,890 $ 6,502
Net Realized Loss from Security Transactions -- --
-------- ---------
Net Increase in Net Assets Resulting
from Operations 5,890 6,502
-------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (4,234) (6,496)
Class A (1,445) (3)
Class S (213) --
-------- ---------
Total Dividends Distributed (5,892) (6,499)
-------- ---------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Institutional Class:
Shares Issued 551,048 349,856
Shares Issued in Lieu of Cash Distributions 3 5
Shares Redeemed (462,715) (345,633)
-------- ---------
Increase in Net Assets From Institutional
Class Share Transactions 88,336 4,228
-------- ---------
Class A:
Shares Issued 323,359 5,584
Shares Issued in Lieu of Cash Distributions 422 --
Shares Redeemed (177,969) (642)
-------- ---------
Increase in Net Assets From Class A
Share Transactions 145,812 4,942
-------- ---------
Class S:
Shares Issued 50,967 562
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed (20,067) --
-------- ---------
Increase in Net Assets From Class S
Share Transactions 30,900 562
-------- ---------
Net Increase in Net Assets From Share
Transactions 265,048 9,732
-------- ---------
Total Increase in Net Assets 265,046 9,735
-------- ---------
NET ASSETS:
Beginning of Period 143,163 133,428
-------- ---------
End of Period $408,209 $143,163
======== =========
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
35
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
CNI CHARTER FUNDS -- FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2000 (UNAUDITED) AND THE YEAR ENDED OCTOBER 31, 1999.
11/1/99 TO 6/21/99(1) TO
4/30/00 10/31/99
GOVERNMENT MONEY MARKET FUND (000) (000)
---------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
<S> <C> <C>
Net Investment Income $ 39,938 $ 21,229
Net Realized Gain from Security Transactions 1 --
---------- -----------
Net Increase in Net Assets Resulting from Operations 39,939 21,229
---------- -----------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (85) --
Class A (39,707) (21,228)
Class S (140) (1)
---------- -----------
Total Dividends Distributed (39,932) (21,229)
---------- -----------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Institutional Class:
Shares Issued 23,770 --
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed (2,927) --
---------- -----------
Increase in Net Assets From Institutional Class Share Transactions 20,843 --
---------- -----------
Class A:
Shares Issued 2,227,349 2,596,166
Shares Issued in Lieu of Cash Distributions 27,126 14,931
Shares Redeemed (2,017,057) (1,098,960)
---------- -----------
Increase in Net Assets From Class A Share Transactions 237,418 1,512,137
---------- -----------
Class S:
Shares Issued 39,967 911
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed (16,772) --
---------- -----------
Increase in Net Assets From Class S Share Transactions 23,195 911
---------- -----------
Net Increase in Net Assets From Share Transactions 281,456 1,513,048
---------- -----------
Total Increase in Net Assets 281,463 1,513,048
---------- -----------
NET ASSETS:
Beginning of Period 1,513,048 --
---------- -----------
End of Period $1,794,511 $ 1,513,048
========== ===========
</TABLE>
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
36
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CNI CHARTER FUNDS -- FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2000 (UNAUDITED) AND THE YEAR ENDED OCTOBER 31, 1999.
11/1/99 TO 6/21/99(1) TO
4/30/00 10/31/99
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (000) (000)
---------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
<S> <C> <C>
Net Investment Income $ 6,815 $ 4,089
Net Realized Gain (Loss) from Security Transactions 3 (1)
--------- ----------
Net Increase in Net Assets Resulting from Operations 6,818 4,088
--------- ----------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (35) --
Class A (6,778) (4,083)
Class S (12) --
--------- ----------
Total Dividends Distributed (6,825) (4,083)
--------- ----------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Institutional Class:
Shares Issued 45,990 --
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed (32,161) --
--------- ----------
Increase in Net Assets From Institutional Class Share Transactions 13,829 --
--------- ----------
Class A:
Shares Issued 633,446 1,098,793
Shares Issued in Lieu of Cash Distributions 4,935 2,980
Shares Redeemed (660,294) (568,534)
--------- ----------
Increase (Decrease) in Net Assets From Class A Share Transactions (21,913) 533,239
--------- ----------
Class S:
Shares Issued 13,158 --
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed (10,880) --
--------- ----------
Increase in Net Assets From Class S Share Transactions 2,278 --
--------- ----------
Net Increase (Decrease) in Net Assets From Share Transactions (5,806) 533,239
--------- ----------
Total Increase (Decrease) in Net Assets (5,813) 533,244
--------- ----------
NET ASSETS:
Beginning of Period 533,244 --
--------- ----------
End of Period $ 527,431 $ 533,244
========= ==========
</TABLE>
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
37
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
1/14/00(1) TO
4/30/00
CORPORATE BOND FUND (000)
-----------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 324
Net Realized Loss from Security Transactions --
Net Change in Unrealized Depreciation on Investments (109)
------
Net Increase in Net Assets Resulting from Operations 215
------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (324)
Class A --
-------
Total Dividends Distributed (324)
-------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 3,637
Proceeds from In-Kind Transaction (note 7) 18,018
Reinvestment of Distributions 54
Cost of Shares Redeemed (1,507)
-------
Increase in Net Assets From Institutional Class
Share Transactions 20,202
-------
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 Share Transactions 20,203
-------
Total Increase in Net Assets 20,094
-------
NET ASSETS:
Beginning of Period --
-------
End of Period $20,094
=======
Institutional Class:
Shares Issued 364
Shares Issued in Connection With In-Kind
Transactions (note 7) 1,802
Shares Issued in Lieu of Cash Distribution 5
Shares Redeemed (150)
-------
Total Institutional Class Transactions 2,021
-------
Class A:
Shares Issued --
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed --
-------
Total Class A Transactions --
-------
Net Increase in Net Assets Derived from
Capital Share Transactions 2,021
=======
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
38
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
1/14/00(1) TO
4/30/00
GOVERNMENT BOND FUND (000)
-------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 175
Net Realized Loss from Security Transactions (119)
Net Change in Unrealized Appreciation on Investments 84
--------
Net Increase in Net Assets Resulting from Operations 140
--------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (174)
Class A --
--------
Total Dividends Distributed (174)
--------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds From Shares Issued 1,183
Proceeds from In-Kind Transaction (note 7) 13,321
Reinvestment of Distributions 8
Cost of Shares Redeemed (3,845)
--------
Increase in Net Assets From Institutional
Class Share Transactions 10,667
--------
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 Share Transactions 10,668
--------
Total Increase in Net Assets 10,634
--------
NET ASSETS:
Beginning of Period --
--------
End of Period $10,634
========
Institutional Class:
Shares Issued 118
Shares Issued in Connection With In-Kind
Transactions (note 7) 1,332
Shares Issued in Lieu of Cash Distribution 1
Shares Redeemed (386)
--------
Total Institutional Class Transactions 1,065
--------
Class A:
Shares Issued --
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed --
--------
Total Class A Transactions --
--------
Net Increase in Net Assets Derived from
Capital Share Transactions 1,065
========
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
39
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
1/14/00(1) TO
4/30/00
CALIFORNIA TAX EXEMPT BOND FUND (000)
--------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 169
Net Realized Loss from Security Transactions (19)
Net Change in Unrealized Appreciation on Investments 50
-------
Net Increase in Net Assets Resulting from Operations 200
-------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (167)
Class A --
-------
Total Dividends Distributed (167)
-------
CAPITAL SHARE TRANSACTIONS
Institutional Class:
Proceeds from Shares Issued 953
Proceeds from In-Kind Transaction (note 7) 13,419
Reinvestment of Distributions --
Cost of Shares Redeemed (1,763)
-------
Increase in Net Assets From Institutional Class
Share Transactions 12,609
-------
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 Share Transactions 12,610
-------
Total Increase in Net Assets 12,643
-------
NET ASSETS:
Beginning of Period --
-------
End of Period $12,643
=======
Institutional Class:
Shares Issued 95
Shares Issued in Connection With In-Kind
Transactions (note 7) 1,342
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed (175)
-------
Total Institutional Class Transactions 1,262
-------
Class A:
Shares Issued --
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed --
-------
Total Class A Transactions --
-------
Net Increase in Net Assets Derived from Capital
Share Transactions 1,262
=======
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
40
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
1/14/00(1) TO
4/30/00
HIGH YIELD BOND FUND (000)
---------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 151
Net Realized Loss from Security Transactions (1)
Net Change in Unrealized Depreciation on Investments (74)
------
Net Increase in Net Assets Resulting from Operations 76
------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (133)
Class A (15)
------
Total Dividends Distributed (148)
------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 6,410
Reinvestment of Distributions 130
Cost of Shares Redeemed (5)
------
Increase in Net Assets From Institutional Class
Share Transactions 6,535
------
Class A:
Proceeds from Shares Issued 1,318
Reinvestment of Distributions 15
Cost of Shares Redeemed --
------
Increase in Net Assets From Class A Share Transactions 1,333
------
Net Increase in Net Assets From Share Transactions 7,868
------
Total Increase in Net Assets 7,796
------
NET ASSETS:
Beginning of Period --
------
End Of Period $7,796
======
Institutional Class:
Shares Issued 642
Shares Issued in Lieu of Cash Distribution 13
Shares Redeemed (1)
------
Total Institutional Class Transactions 654
------
Class A
Shares Issued 132
Shares Issued in Lieu of Cash Distribution 2
Shares Redeemed --
------
Total Class A Transactions 134
------
Net Increase in Net Assets Derived from Capital
Share Transactions 788
======
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
41
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
1/14/00(1) TO
4/30/00
LARGE CAP VALUE EQUITY FUND (000)
--------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 58
Net Realized Gain from Security Transactions 2,234
Net Change in Unrealized Depreciation on Investments (3,632)
-------
Net Decrease in Net Assets Resulting from Operations (1,340)
-------
DIVIDENDS DISTRIBUTED FROM:
Net Investment Income:
Institutional Class (52)
Class A --
-------
Total Dividends Distributed (52)
-------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 1,442
Proceeds from In-Kind Transaction (note 7) 27,331
Reinvestment of Distributions 7
Cost of Shares Redeemed (2,052)
-------
Increase in Net Assets From Institutional
Class Share Transactions 26,728
-------
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 Share Transactions 26,729
-------
Total Increase in Net Assets 25,337
-------
NET ASSETS:
Beginning of Period --
-------
End of Period $25,337
=======
Institutional Class:
Shares Issued 156
Shares Issued in Connection With In-Kind
Transactions (note 7) 2,733
Shares Issued in Lieu of Cash Distribution 1
Shares Redeemed (217)
-------
Total Institutional Class Transactions 2,673
-------
Class A
Shares Issued --
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed --
-------
Total Class A Transactions --
-------
Net Increase in Net Assets Derived from
Capital Share Transactions 2,673
=======
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
42
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
1/14/00(1) TO
4/30/00
LARGE CAP GROWTH EQUITY FUND (000)
---------------------------------------------------------------------------
OPERATIONS:
Net Investment Loss $ (21)
Net Realized Gain from Security Transactions 32
Net Change in Unrealized Appreciation on Investments 244
-------
Net Increase in Net Assets Resulting from Operations 255
-------
CAPITAL SHARE TRANSACTIONS:
Institutional Class:
Proceeds from Shares Issued 2,852
Proceeds from In-Kind Transaction (note 7) 21,323
Reinvestment of Distributions --
Cost of Shares Redeemed (1,423)
-------
Increase in Net Assets From Institutional
Class Share Transactions 22,752
--------
Class A
Proceeds from Shares Issued 16
Reinvestment of Distributions --
Cost of Shares Redeemed --
-------
Increase in Net Assets From Class A Share Transactions 16
-------
Net Increase in Net Assets From Share Transactions 22,768
-------
Total Increase in Net Assets 23,023
-------
NET ASSETS:
Beginning of Period --
-------
END OF PERIOD $23,023
=======
Institutional Class:
Shares Issued 290
Shares Issued in Connection With In-Kind
Transactions (note 7) 2,132
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed (145)
-------
Total Institutional Class Transactions 2,277
-------
Class A:
Shares Issued 2
Shares Issued in Lieu of Cash Distribution --
Shares Redeemed --
-------
Total Class A Transactions 2
-------
Net Increase in Net Assets Derived from Capital
Share Transactions 2,279
=======
(1) Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
See accompanying notes to financial statements.
43
<PAGE>
FINANCIAL HIGHLIGHTS
CNI CHARTER FUNDS -- FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
AND THE PERIODS ENDED OCTOBER 31, 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
2000 $1.00 0.026 (0.026) $1.00 2.65% $ 225,996 0.63% 5.29% 0.72%
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
2000 $1.00 0.025 (0.025) $1.00 2.54% $ 150,751 0.85% 5.15% 1.22%
1999(2) 1.00 0.002 (0.002) 1.00 0.18 4,942 0.85 4.62 1.30
Class S
2000 $1.00 0.024 (0.024) $1.00 2.44% $ 31,462 1.05% 4.98% 1.22%
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
2000(4) $1.00 0.004 (0.004) $1.00 0.40% $ 20,843 0.63% 5.43% 0.66%
Class A
2000 $1.00 0.025 (0.025) $1.00 2.50% $1,749,562 0.85% 4.98% 1.18%
1999(5) 1.00 0.016 (0.016) 1.00 1.58 1,512,137 0.85 4.33 1.15
Class S
2000 $1.00 0.024 (0.024) $1.00 2.40% $ 24,106 1.05% 4.89% 1.18%
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
2000(7) $1.00 0.002 (0.002) $1.00 0.23% $ 13,829 0.55% 2.96% 0.73%
Class A
2000 $1.00 0.012 (0.012) $1.00 1.23% $ 511,324 0.78% 2.45% 1.24%
1999(8) 1.00 0.008 (0.008) 1.00 0.79 533,244 0.78 2.17 1.21
Class S
2000(9) $1.00 0.011 (0.011) $1.00 1.05% $ 2,278 0.98% 2.40% 1.24%
(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.
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED) FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
NET RATIO
NET REALIZED AND NET NET RATIO OF EXPENSES
ASSET UNREALIZED DISTRIBUTIONS ASSET ASSETS RATIO OF NET TO AVERAGE PORT-
VALUE NET GAINS/(LOSSES FROM NET VALUE END OF OF EXPENSES INCOME NET ASSETS FOLIO
BEGINNING INVESTMENT ON INVESTMENT END TOTAL PERIOD TO AVERAGE TO AVERAGE (EXCLUDING TURNOVER
OF PERIOD INCOME SECURITIES INCOME OF PERIOD RETURN (000) NET ASSETS(9) NET ASSETS(9) WAIVERS)(9) RATE
---------- -------- ----------- ---------- --------- ------ ------ ------------- ------------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Corporate Bond Fund
Institutional Class
2000(1) $10.00 0.17 (0.06) (0.17) $ 9.94 1.11% $20,093 0.75% 5.98% 0.93% 6%
Class A
2000(2) $10.06 0.03 (0.11) (0.03) $ 9.95 (0.80%) $ 1 1.00% 5.73% 1.18% 6%
Government Bond Fund
Institutional Class
2000(3) $10.00 0.16 (0.01) (0.16) $ 9.99 1.46% $10,633 0.70% 5.45% 1.01% 3%
Class A
2000(4) $10.06 0.03 (0.07) (0.03) $ 9.99 (0.41%) $ 1 0.95% 5.20% 1.26% 3%
California Tax Exempt Bond Fund
Institutional Class
2000(5) $10.00 0.13 0.02 (0.13) $10.02 1.45% $12,642 0.50% 4.43% 0.83% 15%
Class A
2000(6) $10.10 0.02 (0.08) (0.02) $10.02 (0.62%) $ 1 0.75% 4.18% 1.08% 15%
High Yield Bond Fund
Institutional Class
2000(7) $10.00 0.25 (0.10) (0.25) $ 9.90 1.47% $ 6,472 1.00% 8.88% 1.47% 1%
Class A
2000(8) $10.00 0.24 (0.10) (0.24) $ 9.90 1.35% $ 1,324 1.30% 9.23% 1.77% 1%
(1) Corporate Bond Fund Institutional Class shares commenced operations on January 14, 2000.
(2) Corporate Bond Fund Class A shares commenced operations on April 14, 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 14, 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 14, 2000.
(7) High Yield Bond Fund Institutional Class shares commenced operations on January 14, 2000.
(8) High Yield Bond Fund Class A shares commenced operations on January 14, 2000.
(9) Annualized.
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CNI CHARTER FUNDS -- FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET RATIO
NET REALIZED AND NET NET RATIO OF EXPENSES
ASSET NET UNREALIZED DISTRIBUTIONS ASSET ASSETS RATIO OF NET TO AVERAGE PORT-
VALUE INVESTMENT GAINS/(LOSSES) FROM NET VALUE END OF EXPENSES INCOME NET ASSETS FOLIO
BEGINNING INCOME/ ON INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING TURNOVER
OF PERIOD (LOSS) SECURITIES INCOME OF PERIOD RETURN (000) NET ASSETS(5) NET ASSET(5) WAIVERS(5) RATE
------------------- ------------- ------------ --------- ------ --------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Value Equity Fund
Institutional Class
2000(1) $10.00 0.02 (0.52) (0.02) $ 9.48 (5.01%) $25,336 1.00% 0.82% 1.14% 17%
Class A
2000(2) $ 9.55 -- (0.07) -- $ 9.48 (0.73%) $ 1 1.25% (0.15%) 1.39% 17%
Large Cap Growth Equity Fund
Institutional Class
2000(3) $10.00 (0.01) 0.11 -- $10.10 1.00% $23,007 1.05% (0.33%) 1.18% 28%
Class A
2000(4) $10.70 -- (0.60) -- $10.10 (5.61%) $ 16 1.30% (0.09%) 1.43% 28%
(1) Large Cap Value Equity Fund Institutional Class shares commenced operations on January 14, 2000.
(2) Large Cap Value Equity Fund Class A shares commenced operations on April 13, 2000.
(3) Large Cap Growth Equity Fund Institutional Class shares commenced operations on January 14, 2000.
(4) Large Cap Growth Equity Fund Class A shares commenced operations on March 28, 2000.
(5) Annualized.
</TABLE>
See accompanying notes to financial statements.
46
<PAGE>
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (UNAUDITED)
1. ORGANIZATION:
The CNI Charter Funds, a Delaware trust (the "Trust"), formerly named the
Berkeley Money Market Funds, is registered under the Investment Company Act of
1940, as an open-end management investment company. The financial statements
included herein are those of the CNI Charter Funds: Prime Money Market Fund
(formerly known as the Money Market Fund), Government Money Market Fund
(formerly known as the Government Fund), California Tax Exempt Money Market Fund
(formerly known as the California Tax Exempt Fund) (collectively the "Money
Market Funds"), Corporate Bond Fund, Government Bond Fund, California Tax Exempt
Bond Fund, High Yield Bond Fund, (collectively the "Fixed Income Funds"), Large
Cap Value Equity Fund and Large Cap Growth Equity Fund (collectively the "Equity
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 April 30,
2000) for which market quotations are not readily available are valued at
fair value as determined in good faith byor 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 matu-
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
rity 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 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 October 31, 1999:
Undistributed
Accumulated Net Investment
Paid-in-Capital Realized Gain Income
Funds (000) (000) (000)
----------- ---------------- -------------- ------------------
Prime Money
Market Fund $(33) $-- $33
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 gener- ally accepted accounting principles, 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.
48
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
3. SERVICE AGREEMENTS:
Prior to April 1, 1999, Firstar Mutual Fund Services, LLC served as
Administrator, Shareholder Servicing Agent and Transfer Agent of the Fund.
Effective April 1, 1999, SEI Investments Mutual Funds Services assumed the role
of Administrator whereby they provide administrative services at an annual rate
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 daily net assets of the California Tax Exempt Money Market Fund, and 0.075%
of the daily net assets of the Fixed Income and Equity Funds, subject to a
minimum annual fee of $90,000 for the Prime Money Market Fund. As of the same
date, 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 certain transfer agency related expenses on
behalf of the Fund.
On April 1, 1999, First Union National Bank assumed the role of Custodian for
the Fund from Firstar Bank Milwaukee, N.A. Fees of the Custodian are being paid
on the basis of the net assets of the Fund. The Custodian plays no role in
determining the investment policies of the Fund or which securities are to be
purchased or sold by the Fund.
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 ("CNB")
assumed the role of Investment Adviser. Under the terms of the agreements, CNB
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 daily average net assets of the Corporate
Bond Fund, 0.43% of the daily average net assets of the Government Bond Fund,
0.27% of the daily average net assets of the California Tax Exempt Bond Fund,
0.75% of the daily net assets of the High Yield Bond Fund, 0.62% of the daily
average net assets of the Large Cap Value Equity Fund and 0.65% of the daily
average net assets of the Large Cap Growth Equity Fund. As of April 30, 2000,
the Prime Money Market, 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 had investment
advisory fees payable, net of waivers, to CNB in the amount of $459,417.
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
CNB serves as the Sub-Administrator for the Fixed Income and Equity Funds,
whereby they provide Administrative services at an annual rate of 0.075% of the
average daily net assets. As of April 30, 2000, the Funds had sub-administrative
fees payable to CNB in the amount of $6,025.
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.
In their role as Investment Adviser, CNB 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. CNB 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, CNB has voluntarily agreed to limit their fees or reimburse the expenses
to the extent necessary to keep the operating 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:
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%
<TABLE>
<CAPTION>
California Large Cap Large Cap
Corporate Government Tax Exempt High Yield Value Growth
Bond Bond Bond Bond Equity Equity
Fund Fund Fund Fund Fund Fund
------------- ------------ ------------ ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Institutional
Class 0.75% 0.70% 0.50% 1.00% 1.00% 1.05%
Class A 1.00% 0.95% 0.75% 1.30% 1.25% 1.30%
</TABLE>
50
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
Effective April 1, 1999, the Trust entered into Shareholder Services Agreements
(the "Agreements") with CNB whereby CNB receives shareholder service fees at an
annual rate of 0.25% of the average daily net assets of the Funds. As of April
30, 2000, the Prime Money Market, 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 had
shareholder services fees payable, net of waivers, to CNB in the amount of
$416,214.
The Trust and the Distributor, SEI Investments Distribution Company ("SIDCO"),
entered into Distribution Agreements dated April 8, 1999. The distributor
receives no fees for its distribution services under these agreements.
The Funds have adopted Distribution Plans ("the Plans") relating to the Class A
and S shares pursuant to the Investment Company Act of 1940, Rule 12b-1. The
Plans provide for payment of fees to the Distributor at an annual rate of 0.50%
of the average daily net assets of the Class A and S shares of the Money Market
Funds and 0.25% of the average daily net assets of the Class A shares of the
Fixed Income and Equity Funds, with exception of the High Yield Bond Fund which
is 0.30%. Such fees are then used to compensate broker-dealers and service
providers that provide distribution- related services to Class A and Class S
shareholders. As of April 30, 2000, the Prime Money Market, 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 had distribution fees payable to CNB in the amount of
$607,037.
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 April
30, 2000, were as follows for the "Fixed Income and Equity Funds":
Purchases (000) Sales (000)
Fund U.S. Government Other U.S. Government Other
------------------------------ ---------------------- -----------------------
Corporate Bond Fund $2,489 $ 702 $ -- $ 977
Government Bond Fund 349 -- 1,659 638
California Tax Exempt Bond Fund -- 1,758 -- 2,538
High Yield Bond Fund -- 5,783 -- 48
Large Cap Value Equity Fund -- 4,688 -- 4,233
Large Cap Growth Equity Fund -- 8,011 -- 6,913
At April 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 April 30, 2000 for each of the Fixed Income and Equity
Funds is as follows:
51
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
Net Appreciation/
Appreciation Depreciation (Depreciation)
Fund (000) (000) (000)
------------------------------- -------------- ------------ -----------------
Corporate Bond Fund $ 9 $ (547) $ (538)
Government Bond Fund -- (288) (288)
California Tax Exempt Bond Fund 127 (163) (36)
High Yield Bond Fund 110 (184) (74)
Large Cap Value Equity Fund 9,751 (806) 8,945
Large Cap Growth Equity Fund 4,596 (1,835) 2,761
6. 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.
7. AFFILIATED TRANSACTIONS:
On January 18, 2000, the net assets of City National Bank Collective Investment
Funds: The CNI Fixed Income, CNI-EBT Fixed Income, CNI Taxable Fixed Income,
CNI-EBT Government Securities, CNI-EBT Tax Exempt Fixed Income, CNI Value
Equity, CNI-EBT Large Cap Value Equity, CNI Growth Equity, CNI-EBT Equity and
CNI-EBT Large Cap Growth Equity Funds, consisting entirely of securities and
certain related receivables, were converted on a tax-free basis into the
Corporate Bond, Government Bond, California Tax Exempt Bond, Large Cap Value
Equity and Large Cap Growth Equity Funds, respectively. 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:
Unrealized Gain/
Common Trust Fund Net Assets (000) (Loss) (000)
--------------------------------------- ----------------- -------------------
CNI Fixed Income Fund (1) $14,827 $ (263)
CNI-EBT Fixed Income Fund (1) 3,191 (13)
CNI Taxable Fixed Income Fund (2) 12,716 (374)
CNI-EBT Government Securities Fund (2) 606 (14)
CNI-EBT Tax Exempt Fixed Income Fund (3) 13,419 (87)
CNI Value Equity Fund (4) 23,674 12,334
CNI-EBT Large Cap Value Equity Fund (4) 3,658 243
CNI Growth Equity Fund (5) 14,450 1,464
CNI-EBT Equity Fund (5) 1,294 346
CNI-EBT Large Cap Growth Equity Fund (5) 5,579 707
(1) Converted into the Corporate Bond Fund.
(2) Converted into the Government Bond Fund.
(3) Converted into the California Tax Exempt Bond Fund.
(4) Converted into the Large Cap Value Equity Fund.
(5) Converted into the Large Cap Growth Equity Fund.
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NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
APRIL 30, 2000 (UNAUDITED)
Mutual Funds Net Assets Shares Issued
------------------------------- ----------- ---------------------
Corporate Bond Fund $ 100 1,801,808
Government Bond Fund 100 1,332,122
California Tax Exempt Bond Fund 100 1,341,878
Large Cap Value Equity Fund 100 2,733,138
Large Cap Growth Equity Fund 100 2,132,293
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.
53
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NOTES
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NOTES
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Please remember that past performance is no guarantee of future results.
MUTUAL FUND SHARES:
(BULLET) ARE NOT FDIC INSURED
(BULLET) ARE NOT BANK GUARANTEED
(BULLET) MAY LOSE VALUE
For more information on CNI Charter Funds, including charges and expenses,
please call 1-888-889-0799 for a free prospectus. Read it carefully before you
invest or send money.
CNI GRAPHIC OMITTED
(SQUARE BULLET) PRIME MONEY MARKET FUND
(SQUARE BULLET) GOVERNMENT MONEY MARKET FUND
(SQUARE BULLET) CALIFORNIA TAX EXEMPT MONEY MARKET FUND
(SQUARE BULLET) CORPORATE BOND FUND
(SQUARE BULLET) GOVERNMENT BOND FUND
(SQUARE BULLET) CALIFORNIA TAX EXEMPT BOND FUND
(SQUARE BULLET) HIGH YIELD BOND FUND
(SQUARE BULLET) LARGE CAP VALUE EQUITY FUND
(SQUARE BULLET) LARGE CAP GROWTH EQUITY FUND
SEMI-ANNUAL REPORT
APRIL 30, 2000
INVESTMENT MANAGER:
CITY NATIONAL INVESTMENTS
A DIVISION OF CITY NATIONAL BANK
CNI-F-008-02
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