-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PbA8RWTwY0E+SKdHMx43QjqCY2GFqXu1zwNYt0eA0Dnk3ulL7qCMcVHZl1cfgWgt LqTqNyzC3VJF/cU6XTmQCA== 0001111830-08-000589.txt : 20080528 0001111830-08-000589.hdr.sgml : 20080528 20080528123829 ACCESSION NUMBER: 0001111830-08-000589 CONFORMED SUBMISSION TYPE: N-CSRS/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070831 FILED AS OF DATE: 20080528 DATE AS OF CHANGE: 20080528 EFFECTIVENESS DATE: 20080528 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CM ADVISERS FAMILY OF FUNDS CENTRAL INDEX KEY: 0001208252 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-CSRS/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21260 FILM NUMBER: 08862899 BUSINESS ADDRESS: STREET 1: 805 LAS CIMAS PARKWAY STREET 2: SUITE 430 CITY: AUSTIN STATE: TX ZIP: 78746 BUSINESS PHONE: 5123290050 MAIL ADDRESS: STREET 1: 805 LAS CIMAS PARKWAY STREET 2: SUITE 430 CITY: AUSTIN STATE: TX ZIP: 78746 FORMER COMPANY: FORMER CONFORMED NAME: CENTURY MANAGEMENT FAMILY OF FUNDS DATE OF NAME CHANGE: 20021129 0001208252 S000010534 CM Advisers Fixed Income Fund C000029067 CM Advisers Fixed Income Fund CMFIX N-CSRS/A 1 ncsrsa-0807.txt CM ADVISERS FAMILY OF FUNDS - N-CSRS/A ------------------------ OMB APPROVAL ------------------------ OMB Number: 3235-0570 Expires: April 30, 2008 Estimated average burden hours per response: 19.4 ------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21360 --------------------------------------------- CM ADVISERS FAMILY OF FUNDS - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 805 LAS CIMAS PARKWAY, SUITE 430 AUSTIN, TEXAS 78746 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) John F. Splain, Esq. ULTIMUS FUND SOLUTIONS, LCC 225 PICTORIA DRIVE, SUITE 450 CINCINNATI, OHIO 45246 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (512) 329-0050 ---------------------------- Date of fiscal year end: FEBRUARY 29, 2008 ------------------------------------------------------ Date of reporting period: AUGUST 31, 2007 ------------------------------------------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. CM ADVISERS FAMILY OF FUNDS SEMI-ANNUAL REPORT 2007 (As Restated) ---------------- CM ADVISERS FIXED INCOME FUND August 31, 2007 (Unaudited) THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE CM ADVISERS FAMILY OF FUNDS (THE "FUNDS"). THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED. CM ADVISERS FIXED INCOME FUND SUPPLEMENTARY PORTFOLIO INFORMATION AUGUST 31, 2007 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% OF NET ASSETS) - -------------------------------------------------------------------------------- [The following information was depicted as a pie chart in the printed material] U.S. Government Obligations - 75.4% [PIE CHART OMITTED] Money Market Funds - 21.2% Other Assets and Liabilities - 3.4% TOP HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - ------------------------------------------ --------------- U.S. Treasury Strip, 4.50%, due 02/15/2036 55.3% U.S. Treasury Strip, 6.25%, due 05/15/2030 20.1% 2 CM ADVISERS FIXED INCOME FUND SCHEDULE OF INVESTMENTS (As Restated. See Note 8.) AUGUST 31, 2007 (UNAUDITED) ================================================================================ PAR VALUE U.S. GOVERNMENT OBLIGATIONS -- 75.4% VALUE - -------------------------------------------------------------------------------- $ 6,000,000 U.S. Treasury Bond, stripped principal payment, 6.25%, due 05/15/2030................ $ 1,986,192 21,600,000 U.S. Treasury Bond, stripped principal payment, 4.50%, due 02/15/2036................ 5,479,423 ------------- TOTAL U.S. GOVERNMENT OBLIGATIONS (Cost $6,911,911)............................... $ 7,465,615 ------------- ================================================================================ SHARES MONEY MARKET FUNDS -- 21.2% VALUE - -------------------------------------------------------------------------------- 2,097,836 Evergreen Institutional Treasury Money Market Fund - Class I (Cost $2,097,836)......... $ 2,097,836 ------------- TOTAL INVESTMENTS AT VALUE -- 96.6% (Cost $9,009,747)............................... $ 9,563,451 OTHER ASSETS IN EXCESS OF LIABILITIES -- 3.4%... 337,969 ------------- NET ASSETS -- 100.0%............................ $ 9,901,420 ============= See accompanying notes to financial statements. 3 CM ADVISERS FAMILY OF FUNDS STATEMENT OF ASSETS AND LIABILITIES (As Restated. See Note 8.) AUGUST 31, 2007 (UNAUDITED) =================================================================== CM ADVISERS FIXED INCOME FUND - ------------------------------------------------------------------- ASSETS Investments in securities: At cost ......................................... $ 9,009,747 ============ At value (Note 2) ............................... $ 9,563,451 Dividends and interest receivable .................. 6,174 Receivable for investment securities sold .......... 332,027 Receivable from Adviser (Note 5) ................... 12,332 Other assets ....................................... 13,215 ------------ TOTAL ASSETS .................................... 9,927,199 ------------ LIABILITIES Payable to Administrator (Note 5) .................. 4,930 Other accrued expenses ............................. 20,849 ------------ TOTAL LIABILITIES ............................... 25,779 ------------ NET ASSETS ......................................... $ 9,901,420 ============ NET ASSETS CONSIST OF: Paid-in capital .................................... $ 9,408,475 Distributions in excess of net investment income ... (40,041) Accumulated net realized losses from security transactions ..................................... (20,718) Net unrealized appreciation on investments ......... 553,704 ------------ NET ASSETS ......................................... $ 9,901,420 ============ Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) ....... 942,845 ============ Net asset value, redemption price and offering price per share (a) ..................... $ 10.50 ============ (a) Redemption price may differ from the net asset value per share depending upon the length of time the shares are held (Note 2). See accompanying notes to financial statements. 4 CM ADVISERS FAMILY OF FUNDS STATEMENT OF OPERATIONS (As Restated. See Note 8.) SIX MONTHS ENDED AUGUST 31, 2007 (UNAUDITED) ================================================================= CM ADVISERS FIXED INCOME FUND - ----------------------------------------------------------------- INVESTMENT INCOME Interest ................................ $ 132,303 Dividend ................................ 23,859 ------------ TOTAL INVESTMENT INCOME .............. 156,162 ------------ EXPENSES Investment advisory fees (Note 5) ....... 15,664 Administration fees (Note 5) ............ 9,600 Professional fees ....................... 9,784 Fund accounting fees (Note 5) ........... 12,314 Registration fees ....................... 16,340 Trustees' fees and expenses ............. 10,962 Transfer agent fees (Note 5) ............ 7,000 Custody fees ............................ 2,902 Report printing fees .................... 1,462 Insurance expense ....................... 32 Other expenses .......................... 8,899 ------------ TOTAL EXPENSES ....................... 94,959 Advisory fees waived and expenses reimbursed by Adviser (Note 5) ........ (47,968) ------------ NET EXPENSES ......................... 46,991 ------------ NET INVESTMENT INCOME ...................... 109,171 ------------ REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Net realized losses from security transactions .......................... (19,943) Net change in unrealized appreciation/ depreciation on investments ........... 339,508 ------------ NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS .................... 319,565 ------------ NET INCREASE IN NET ASSETS FROM OPERATIONS ......................... $ 428,736 ============ See accompanying notes to financial statements. 5
CM ADVISERS FIXED INCOME FUND STATEMENTS OF CHANGES IN NET ASSETS (As Restated. See Note 8.) ==================================================================================== SIX MONTHS ENDED AUGUST 31, YEAR ENDED 2007 FEBRUARY 28, (UNAUDITED) 2007(a) - ------------------------------------------------------------------------------------ FROM OPERATIONS Net investment income .......................... $ 109,171 $ 77,211 Net realized losses from security transactions . (19,943) (775) Net change in unrealized appreciation/ depreciation on investments .................. 339,508 214,196 ------------- ------------- Net increase in net assets from operations ........ 428,736 290,632 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income ..................... (149,212) (77,211) In excess of net investment income ............. -- (47,267) ------------- ------------- Decrease in net assets from distributions to shareholders .................. (149,212) (124,478) ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold ...................... 6,360,165 2,851,782 Net asset value of shares issued in reinvestment of distributions to shareholders ............ 144,925 122,591 Proceeds from redemption fees collected (Note 2) 85 140 Payments for shares redeemed ................... (9,321) (14,625) ------------- ------------- Net increase in net assets from capital share transactions .................................... 6,495,854 2,959,888 ------------- ------------- TOTAL INCREASE IN NET ASSETS ...................... 6,775,378 3,126,042 NET ASSETS Beginning of period ............................ 3,126,042 -- ------------- ------------- End of period .................................. $ 9,901,420 $ 3,126,042 ============= ============= DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME .......................... $ (40,041) $ -- ============= ============= CAPITAL SHARE ACTIVITY Shares sold .................................... 635,942 282,766 Shares reinvested .............................. 14,654 11,811 Shares redeemed ................................ (911) (1,417) ------------- ------------- Net increase in shares outstanding ............. 649,685 293,160 Shares outstanding, beginning of period ........ 293,160 -- ------------- ------------- Shares outstanding, end of period .............. 942,845 293,160 ============= =============
(a) Represents the period from the commencement of operations (March 24, 2006) through February 28, 2007. See accompanying notes to financial statements. 6
CM ADVISERS FIXED INCOME FUND FINANCIAL HIGHLIGHTS (As Restated. See Note 8.) ===================================================================================== PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD: ===================================================================================== SIX MONTHS ENDED PERIOD AUGUST 31, ENDED 2007 FEBRUARY 28, (UNAUDITED) 2007 (a) - ------------------------------------------------------------------------------------- Net asset value at beginning of period ......... $ 10.66 $ 10.00 ------------ ------------ Income (loss) from investment operations: Net investment income ........................ 0.13 0.29 Net realized and unrealized gains (losses) on investments ............................. (0.12) 0.84 ------------ ------------ Total from investment operations ............... 0.01 1.13 ------------ ------------ Less distributions: Dividends from net investment income ......... (0.17) (0.29) In excess of net investment income ........... -- (0.18) ------------ ------------ Total distributions ............................ (0.17) (0.47) ------------ ------------ Proceeds from redemption fees collected (Note 2) 0.00(f) 0.00(f) ------------ ------------ Net asset value at end of period ............... $ 10.50 $ 10.66 ============ ============ Total return (b) ............................... 0.19%(c) 11.39%(c) ============ ============ RATIOS AND SUPPLEMENTAL DATA: Net assets at end of period (000's) ............ $ 9,901 $ 3,126 ============ ============ Ratio of gross expenses to average net assets .. 3.01%(e) 7.28%(e) Ratio of net expenses to average net assets (d) 1.50%(e) 1.50%(e) Ratio of net investment income to average net assets (d) ............................... 3.46%(e) 3.28%(e) Portfolio turnover rate ........................ 36%(c) 0%
(a) Represents the period from the commencement of operations (March 24, 2006) through February 28, 2007. (b) Total return is a measure of the change in value of an investment in the Fund over the period covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. (c) Not annualized. (d) Ratio was determined after investment advisory fee waivers and/or expense reimbursements. (e) Annualized. (f) Amount rounds to less than $0.01 per share. See accompanying notes to financial statements. 7 CM ADVISERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2007 (UNAUDITED) ================================================================================ 1. ORGANIZATION The CM Advisers Fixed Income Fund (the "Fund") is a no-load series of the CM Advisers Family of Funds (the "Trust"), which was organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940 (the "1940 Act") as an open-end management investment company. The Fund commenced operations on March 24, 2006. The investment objective of the Fund is to seek to preserve capital and maximize total return using fixed income securities. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the Fund's significant accounting policies: INVESTMENT VALUATION - The Fund's investments in securities are carried at market value. Securities listed on an exchange or quoted on a national market system are valued at the last sales price as of 4:00 p.m. Eastern Time. Securities which are quoted by NASDAQ are generally valued at the NASDAQ Official Closing Price. Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price. It is expected that fixed income securities will ordinarily be traded in the over-the-counter market. Securities and assets for which representative market quotations are not readily available (e.g., if the exchange on which the portfolio security is principally traded closes early or if trading of the particular portfolio security is halted during the day and does not resume prior to the Fund's net asset value calculations) or which cannot be accurately valued using the Fund's normal pricing procedures are valued at fair value as determined in good faith under policies approved by the Trustees. A portfolio security's "fair value" price may differ from the price next available for that portfolio security using the Fund's normal pricing procedures. Instruments with maturities of 60 days or less are valued at amortized cost, which approximates market value. SHARE VALUATION AND REDEMPTION FEES -- The net asset value per share of the Fund is calculated daily by dividing the total value of the Fund's assets, less liabilities, by the number of shares outstanding. The offering price and redemption price per share of the Fund is equal to the net asset value per share, except that shares of the Fund are subject to a redemption fee of 1% payable to the Fund, if redeemed within one year of the date of the purchase. During the periods ended August 31, 2007 and February 28, 2007, proceeds from redemption fees totaled $85 and $140, respectively, for the Fund. INVESTMENT TRANSACTIONS AND INVESTMENT INCOME - Investment transactions are accounted for on trade date. Dividend income is recorded on the ex-dividend date. Interest income is accrued as earned. Discounts and premiums on fixed income securities purchased are amortized using the interest method. Gains and losses on securities sold are determined on a specific identification basis, which is the same basis used for federal income tax purposes. 8 CM ADVISERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) ================================================================================ EXPENSES - The Fund bears expenses incurred specifically on its behalf as well as a portion of general Trust expenses, which are allocated according to methods authorized by the Trustees. DIVIDEND DISTRIBUTIONS - Dividends arising from net investment income, if any, are declared and paid quarterly to shareholders of the Fund. Distributions from capital gains (if any) are generally declared and distributed annually. The amount of distributions from net investment income and net realized gains are determined in accordance with federal income tax regulations which may differ from accounting principles generally accepted in the United States of America. These "book/tax" differences are either temporary or permanent in nature. Dividends and distributions are recorded on the ex-dividend date. The tax character of distributions paid during the periods ended August 31, 2007 and February 28, 2007 was as follows:
- ---------------------------------------------------------------------- PERIODS ORDINARY TOTAL ENDED INCOME DISTRIBUTIONS - ---------------------------------------------------------------------- CM Advisers Fixed Income Fund............ 08/31/07 $ 149,212 $ 149,212 02/28/07 $ 124,478 $ 124,478 - ----------------------------------------------------------------------
ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 3. FEDERAL INCOME TAX It is the Fund's policy to comply with the special provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which the Fund so qualifies, and distributes at least 90% of its taxable net income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. Accordingly, no provision for income taxes has been made. In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also the Fund's intention to declare as dividends in each calendar year at least 98% of its net investment income (earned during the calendar year) and 98% of its net realized capital gains (earned during the twelve months ended October 31) plus undistributed amounts from prior years. 9 CM ADVISERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) ================================================================================ The following information is computed on a tax basis for each item as of August 31, 2007: - ------------------------------------------------------------------ CM ADVISERS FIXED INCOME FUND - ------------------------------------------------------------------ Tax cost of portfolio investments ............ $ 9,009,747 ============= Gross unrealized appreciation ................ $ 553,704 Gross unrealized depreciation ................ -- ------------- Net unrealized appreciation .................. $ 553,704 Capital loss carryforward .................... (775) Other losses ................................. (59,984) ------------- Accumulated earnings ......................... $ 492,945 ============= - -------------------------------------------------------------------------------- As of February 28, 2007, the Fund had a capital loss carryforward for federal income tax purposes of $775, which expires February 28, 2015. This capital loss carryforward may be utilized in the current and future years to offset net realized capital gains, if any, prior to distribution to shareholders. 4. INVESTMENT TRANSACTIONS During the period ended August 31, 2007, cost of purchases and proceeds from sales of investment securities, other than short-term investments and U.S. government securities, were as follows: - ------------------------------------------------------------------- CM ADVISERS FIXED INCOME FUND - ------------------------------------------------------------------- Cost of purchases of investment securities ... $ -- ============= Proceeds from sales of investment securities . $ -- ============= - ------------------------------------------------------------------- 5. TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISORY AGREEMENT The Fund pays a monthly advisory fee to the Adviser based upon the average daily net assets of the Fund and calculated at the annual rate of 0.50%. The Adviser has entered into a contractual agreement (the "Expense Limitation Agreement") with the Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Fund, if necessary, in an amount that limits the Fund's total operating expenses (exclusive of interest, taxes, brokerage fees and commissions, extraordinary expenses, and payments, if any, under a Rule 12b-1 plan) during the fiscal year ended February 29, 2008 to not more than 1.50% of the average daily net assets of the Fund. There can be no assurance that the Expense Limitation Agreement or any voluntary fee waivers will continue beyond February 29, 2008. For the six months ended August 31, 2007, the Adviser waived its entire investment advisory fee of $15,664 and reimbursed the Fund for additional expenses in the amount of $32,304. 10 CM ADVISERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) ================================================================================ ADMINISTRATION AGREEMENT Under the terms of an Administration Agreement with the Trust, Ultimus Fund Solutions, LLC ("Ultimus") provides executive and administrative services and internal regulatory compliance services for the Fund. Ultimus supervises the preparation of tax returns, reports to shareholders of the Fund, reports to and filings with the Securities and Exchange Commission ("SEC") and state securities commissions and prepares materials for meetings of the Board of Trustees. For these services, the Fund pays to Ultimus a monthly fee at an annual rate of 0.08% per annum of its average daily net assets up to $500 million, 0.05% of such assets from $500 million to $2 billion, 0.04% of such assets from $2 billion to $3 billion and 0.03% of such assets in excess of $3 billion, provided, however, that the minimum fee is $2,000 per month. During the six months ended August 31, 2007, Ultimus agreed to discount the foregoing fee by 20%. Accordingly, Ultimus was paid administration fees of $9,600 by the Fund. FUND ACCOUNTING AGREEMENT Under the terms of a Fund Accounting Agreement with the Trust, Ultimus calculates the daily net asset value per share and maintains the financial books and records of the Fund. For these services, the Fund pays to Ultimus a base fee of $2,000 per month, plus an asset-based fee at the annual rate of 0.01% of the first $500 million of the Fund's average daily net assets and 0.005% of such assets in excess of $500 million. In addition, the Fund pays all costs of external pricing services. During the six months ended August 31, 2007, Ultimus was paid fund accounting fees of $12,314 by the Fund. TRANSFER AGENT AND SHAREHOLDER SERVICES AGREEMENT Under the terms of a Transfer Agent and Shareholder Services Agreement with the Trust, Ultimus maintains the records of each shareholder's account, answers shareholders' inquiries concerning their accounts, processes purchases and redemptions of the Fund's shares, acts as dividend and distribution disbursing agent and performs other shareholder service functions. For these services, Ultimus receives from the Fund a fee, payable monthly, at an annual rate of $17 per account, provided, however, that the minimum fee is $1,000 per month if the Fund has 25 shareholder accounts or less, $1,250 if the Fund has more than 25 but less than 100 shareholder accounts, and $1,500 per month if the Fund has more than 100 shareholder accounts. In addition, the Fund pays out-of-pocket expenses, including but not limited to, postage and supplies. During the six months ended August 31, 2007, Ultimus was paid transfer agent fees of $7,000 by the Fund. DISTRIBUTION AGREEMENT Pursuant to the terms of a Distribution Agreement with the Trust, Ultimus Fund Distributors, LLC (the "Distributor") serves as the Fund's principal underwriter. The Distributor receives compensation of $250 per month from the Fund for such services. DISTRIBUTION AND SERVICE FEES The Trustees, including a majority of the Trustees who are not "interested persons" of the Trust as defined in the 1940 Act (the "Independent Trustees"), have adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act for the Fund (the "Plan"). Rule 12b-1 regulates the manner in which a regulated investment company may assume costs of distributing and promoting the sales of its shares and servicing of its shareholder accounts. The Plan provides that the Fund may incur certain costs, which may not exceed 11 CM ADVISERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) ================================================================================ 0.45% per annum of the Fund's average daily net assets, related to activities reasonably intended to result in sales of shares of the Fund or support servicing of shareholder accounts. During the six months ended August 31, 2007, the Fund did not incur any distribution related expenses under the Plan. 6. CONTINGENCIES AND COMMITMENTS The Fund indemnifies the Trust's officers and Trustees for certain liabilities that might arise from their performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Trust expects the risk of loss to be remote. 7. ACCOUNTING PRONOUNCEMENTS On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 ("FIN 48") "Accounting for Uncertainty in Income Taxes." FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing a Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-than-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. As a result, the Fund has adopted FIN 48 with this Semi-Annual Report. Based on its analysis, management does not believe that the adoption of FIN 48 has a material impact on the financial statments. In September 2006, the FASB issued Statement on Financial Accounting Standards ("SFAS") No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of SFAS No. 157 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of August 31, 2007, the Fund does not believe the adoption of SFAS No. 157 will impact the amounts reported in the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of the measurements reported on the statement of changes in net assets for a fiscal period. 12 8. RESTATEMENT INFORMATION Subsequent to the issuance of its August 31, 2007 financial statements, the Fund determined that it did not properly accrete discounts on United States Treasury Stripped Securities using the interest method. Accordingly, the Fund has restated the Statement of Assets and Liabilities, including the Schedule of Investments, as of August 31, 2007, the Statement of Operations for the period then ended, the Statement of Changes in Net Assets for the period ended August 31, 2007 and certain financial highlights for the period ended August 31, 2007. The effects of the restatement were to reduce income earned with an offsetting change in the change in unrealized appreciation on investments. Net assets, net asset value per share and total return were unaffected by the restatement.
- ------------------------------------------------------------------------------------------ STATEMENT OF ASSETS AND LIABILITIES PREVIOUSLY AUGUST 31, 2007 (UNAUDITED) REPORTED RESTATED - ------------------------------------------------------------------------------------------ Investments in securities, at cost ...................... $ 9,156,353 $ 9,009,747 Paid-in capital ......................................... $ 9,455,742 $ 9,408,475 Accumulated undistributed net investment income ......... $ 129,512 $ (40,041) Accumulated net realized losses from security transactions ................................... $ (90,932) $ (20,718) Net unrealized appreciation on investments .............. $ 407,098 $ 553,704 - ------------------------------------------------------------------------------------------ STATEMENT OF OPERATIONS PREVIOUSLY FOR THE SIX MONTHS ENDED AUGUST 31, 2007 (UNAUDITED) REPORTED RESTATED - ------------------------------------------------------------------------------------------ Interest income ......................................... $ 268,360 $ 132,303 Total investment income ................................. $ 292,219 $ 156,162 Net investment income ................................... $ 245,228 $ 109,171 Net realized losses from security transactions .......... $ (90,157) $ (19,943) Net change in unrealized appreciation/depreciation on investments ......................................... $ 273,665 $ 339,508 Net realized and unrealized gains on investments ........ $ 183,508 $ 319,565 - ------------------------------------------------------------------------------------------ STATEMENT OF CHANGES IN NET ASSETS PREVIOUSLY SIX MONTHS ENDED AUGUST 31, 2007 (UNAUDITED) REPORTED RESTATED - ------------------------------------------------------------------------------------------ Net investment income ................................... $ 245,228 $ 109,171 Net realized losses from security transactions .......... $ (90,157) (19,943) Net change in unrealized appreciation/depreciation on investments ......................................... $ 273,665 $ 339,508 Accumulated undistributed net investment income ......... $ 129,512 $ (40,041) - ------------------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS PREVIOUSLY FOR THE SIX MONTHS ENDED AUGUST 31, 2007 (UNAUDITED) REPORTED RESTATED - ------------------------------------------------------------------------------------------ Net investment income ................................... $ 0.19 $ 0.13 Net realized and unrealized losses on investments ....... $ (0.18) $ (0.12) Ratio of net investment income to average net assets .... 7.78% $ 3.46% - ------------------------------------------------------------------------------------------
13 CM ADVISERS FAMILY OF FUNDS ABOUT YOUR FUND'S EXPENSES (UNAUDITED) ================================================================================ We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Fund expenses. Operating expenses, which are deducted from the Fund's gross income, directly reduce the investment return of the Fund. A mutual fund's ongoing costs are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples below are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The table below illustrates the Fund's costs in two ways: ACTUAL FUND RETURN - This section helps you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the Fund's actual return, and the third column shows the dollar amount of operating expenses that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for the Fund under the heading "Expenses Paid During Period." HYPOTHETICAL 5% RETURN - This section is intended to help you compare the Fund's costs with those of other mutual funds. It assumes that the Fund had an annual return of 5% before expenses during the period shown, but that the expense ratio is unchanged. In this case, because the return used is not the Fund's actual return, the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess the Fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. Note that expenses shown in the table are meant to highlight and help you compare ongoing costs only. The Fund does not impose any sales loads. However, a redemption fee of 1% is applied on the sale of shares (sold within one year of the date of their purchase.) The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. More information about the Fund's expenses, including annual expense ratios, can be found in this report. For additional information on operating expenses and other shareholder costs, please refer to the Fund's prospectus. 14 CM ADVISERS FAMILY OF FUNDS ABOUT YOUR FUNDS' EXPENSES (UNAUDITED) (CONTINUED) ================================================================================ CM ADVISERS FIXED INCOME FUND - -------------------------------------------------------------------------------- BEGINNING ENDING ACCOUNT VALUE ACCOUNT VALUE EXPENSES PAID MARCH 1, 2007 AUG. 31, 2007 DURING PERIOD* - -------------------------------------------------------------------------------- Based on Actual Fund Return... $1,000.00 $1,001.90 $ 7.52 Based on Hypothetical 5% Return (before expenses). $1,000.00 $1,017.69 $ 7.58 - -------------------------------------------------------------------------------- * Expenses are equal to the Fund's annualized expense ratio of 1.50% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). OTHER INFORMATION (UNAUDITED) ================================================================================ The Trust files a complete listing of portfolio holdings for the Fund with the SEC as of the first and third quarters of each fiscal year on Form N-Q. The filings are available upon request, by calling 1-888-859-5856. Furthermore, you may obtain a copy of these filings on the SEC's website at http://www.sec.gov. The Trust's Forms N-Q may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling toll-free 1-888-859-5856, or on the SEC's website at http://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available without charge upon request by calling toll-free 1-888-859-5856, or on the SEC's website at http://www.sec.gov. 15 CM ADVISERS FIXED INCOME FUND A SERIES OF THE CM ADVISERS FAMILY OF FUNDS ---------------------- FOR SHAREHOLDER SERVICE INQUIRIES: FOR INVESTMENT ADVISER INQUIRIES: Ultimus Fund Solutions, LLC Van Den Berg Management, Inc. P.O. Box 46707 (d/b/a CM Fund Advisers) Cincinnati, OH 45246-0707 805 Las Cimas Parkway, Suite 430 Austin, Texas 78746 TOLL-FREE TELEPHONE: TOLL-FREE TELEPHONE: 1-888-859-5856 1-888-859-5856 WORLD WIDE WEB @: centman.com - -------------------------------------------------------------------------------- Investment in the Fund is subject to investment risks, including the possible loss of some or all of the principal amount invested. No investment strategy works all the time, and past performance is not necessarily indicative of future performance. THE PERFORMANCE INFORMATION QUOTED IN THIS REPORT REPRESENTS PAST PERFORMANCE, WHICH IS NOT A GUARANTEE OF FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. A REDEMPTION FEE OF 1% OF THE AMOUNT REDEEMED IS IMPOSED ON REDEMPTIONS OF FUND SHARES OCCURRING WITHIN ONE YEAR FOLLOWING THE ISSUANCE OF SUCH SHARES. AN INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION ABOUT THE FUND. A COPY OF THE PROSPECTUS IS AVAILABLE AT WWW.CENTMAN.COM OR BY CALLING SHAREHOLDER SERVICES AT 1-888-859-5856. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING. - -------------------------------------------------------------------------------- Stated performance in the Fund was achieved at some or all points during the year by waiving or reimbursing part of the Fund's total expenses to ensure shareholders did not absorb expenses significantly greater than the industry norm. FOR MORE INFORMATION ON YOUR CM ADVISERS FAMILY OF FUNDS: See Our Web site @ www.centman.com or Call Our Shareholder Services Group Toll-Free at 1-888-859-5856 ITEM 2. CODE OF ETHICS. No required ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not required ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not required ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable [schedule filed with Item 1] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant's board of trustees. ITEM 11. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) as of a date within 90 days of the filing date of this report, the registrant's principal executive officer (the "PEO") and principal financial officer (the "PFO") have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively. The PEO and PFO have based their conclusion regarding the effectiveness of registrant's disclosure controls and procedures on, among other things, the adoption of additional controls and procedures by the registrant and the registrant's administrator relating to the recording and monitoring of the accretion of discount on United States Treasury Stripped Securities ("Treasury Stripped Securities"). Subsequent to the initial filing of this report on November 8, 2007 and prior to their evaluation of the registrant's disclosure controls and procedures for this report, the PEO and PFO became aware that the registrant had used a straight line method for discount accretion on Treasury Stripped Securities, rather than using the appropriate interest method for accreting discounts on Treasury Stripped Securities. Upon a review of the registrant's records, it appeared that the registrant through its investment adviser had received incorrect advice from the registrant's former administrator regarding the appropriate method to be used for accreting discounts on Treasury Stripped Securities. As a result the registrant's Treasury Stripped Securities investments were set up by the registrant's former administrator using the incorrect accretion method. In addition, the controls and procedures of the registrant's current administrator did not detect and correct the error. While the use of the incorrect accretion method had no impact on the net assets, net asset value per share or the total return of either the CM Advisers Fund (the "Advisers Fund") or the CM Advisers Fixed Income Fund (the "Fixed Income Fund"), this control deficiency was nevertheless determined to be a material weakness since it resulted in an overstatement of income and understatement of appreciation and/or net realized capital gains. Accordingly, the registrant worked with the registrant's administrator to ensure that the administrator adopted additional controls and procedures in connection with its security set-up and periodic review process so that the registrant's security master file uses proper methods for accretion of discounts on Treasury Stripped Securities and similar type securities, and that the registrant adopted additional controls and procedures to monitor the same. Following a review of the impact of the use of an inappropriate method of accretion of Treasury Stripped Securities, the registrant determined it was appropriate to restate the Fixed Income Fund's Statement of Assets and Liabilities, Statement of Operations, Statement of Changes in Net Assets and certain financial highlights for the period ended August 31, 2007 included in this report and for the periods ended August 31, 2006 and February 28, 2007. The effects of the restatement were to reduce income earned with an offsetting change in unrealized appreciation on investments and/or net realized capital gains. The impact on the Advisers Fund was determined to be immaterial, so it was determined that a restatement was not necessary. As noted above, the use of the incorrect accretion method had no impact on the net assets, net asset value per share or the total return of either Fund. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to material affect, the registrant's internal control over financial reporting. However, as discussed above, subsequent to the second fiscal quarter of the period covered by this report and the initial filing of this report, the registrant enhanced its controls and procedures relating to the recording and monitoring of the accretion of discount on United States Treasury Stripped Securities and similar type securities. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not required (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable (b) Certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)): Attached hereto Exhibit 99.CERT Certifications required by Rule 30a-2(a) under the Act Exhibit 99.906CERT Certifications required by Rule 30a-2(b) under the Act SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) CM Advisers Family of Funds ------------------------------------------------------------------- By (Signature and Title)* /s/ Arnold Van Den Berg ------------------------------------------------------ Arnold Van Den Berg, Chairman and President Date May 14, 2008 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Arnold Van Den Berg ------------------------------------------------------ Arnold Van Den Berg, Chairman and President Date May 14, 2008 ---------------- By (Signature and Title)* /s/ James D. Brilliant ------------------------------------------------------ James D. Brilliant, Treasurer Date May 14, 2008 ---------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 ex99cert.txt CERTIFICATIONS REQUIRED BY RULE 30A-2(A) EX-99.CERT CERTIFICATIONS -------------- I, Arnold Van Den Berg, certify that: 1. I have reviewed this report on Form N-CSR of CM Advisers Family of Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 14, 2008 /s/ Arnold Van Den Berg ------------------------------------------- Arnold Van Den Berg, Chairman and President CERTIFICATIONS -------------- I, James D. Brilliant, certify that: 1. I have reviewed this report on Form N-CSR of CM Advisers Family of Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 14, 2008 /s/ James D. Brilliant ------------------------------------------- James D. Brilliant, Treasurer EX-99.906 CERT 3 ex99906cert.txt CERTIFICATIONS REQUIRED BY RULE 30A-2(B) EX-99.906CERT CERTIFICATIONS -------------- Arnold Van Den Berg, Chief Executive Officer, and James D. Brilliant, Chief Financial Officer, of CM Advisers Family of Funds (the "Registrant"), each certify to the best of his knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended August 31, 2007 (the "Form N-CSR") fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER CM Advisers Family of Funds CM Advisers Family of Funds /s/ Arnold Van Den Berg /s/ James D. Brilliant - --------------------------------- ------------------------------ Arnold Van Den Berg, President James D. Brilliant, Treasurer Date: May 14, 2008 Date: May 14, 2008 A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, OR OTHER DOCUMENT AUTHENTICATING, ACKNOWLEDGING OR OTHERWISE ADOPTING THE SIGNATURE THAT APPEARS IN TYPED FORM WITHIN THE ELECTRONIC VERSION OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, HAS BEEN PROVIDED TO CM ADVISERS FAMILY OF FUNDS AND WILL BE RETAINED BY CM ADVISERS FAMILY OF FUNDS AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----