<PAGE>
Letter from the President
Dear Shareholder:
The fiscal year that ended February 28, 1999 demonstrated the effects of
economic and market globalization. We were reminded that no matter how good
conditions appear at home, events as far away as Russia and Asia can have a
dramatic impact on our domestic financial markets.
The stock market started the fiscal year on a strong note and maintained that
course until mid-summer, when concern over financial unrest in Asia, Russia and
Latin America sent the U.S. market plunging.
Nevertheless, these events proved beneficial for the U.S. Treasury market.
Investors throughout the world fled to the "safe haven" of the U.S. Treasury
market, pushing Treasury bond yields to their lowest levels in 30 years.
Late in 1998, a series of three Federal Reserve rate cuts helped restore
investor confidence in U.S. equities and non-Treasury bonds. In fact, despite a
total return decline of almost 10% in the third calendar quarter of 1998, the
S&P 500 Index finished the 1998 calendar year with a total return of 28.58%,
marking the fourth year in a row that the index increased more than 20%. And,
that upward trend generally continued through February 28, 1999.
Events of the fiscal year also serve to demonstrate the importance of two
strategies:
1. Maintaining a long-term investing perspective. When the market experiences
short-term volatility, it's important to stay focused on your long-term
goals. By maintaining your perspective and riding out market volatility,
your investments may realize their full potential.
2. Practicing an asset allocation strategy. No single asset class performs well
all of the time. Spreading your money among stock, bond and money market
investments--according to your goals, time frame and tolerance for risk--may
offer an ideal way to capture returns from the three major asset classes and
control risk.
The NestEgg Funds make it easy for you to practice these important strategies.
By selecting the NestEgg Fund that most closely matches your investing time
horizon, you can stay focused on your goals. You know that your investments are
being managed with your specific time frame in mind.
Furthermore, all of the NestEgg Funds are strategically invested in the three
major asset classes according to each fund's specific time objective. You're
invested in a mix of mutual funds that our investment managers believe may be
suited to your goals.
The NestEgg Funds offer a convenient way for you to invest in a well
diversified, goal-oriented, professionally managed portfolio. The funds offer
exposure to time-tested strategies that may help you realize your ultimate
investment goals. We look forward to helping you reach those goals, and we
appreciate your ongoing support and confidence.
/s/ Dave Bunstine
Dave Bunstine
President
1
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
- --------------------------------
NestEgg Funds February 28, 1999
________________________________________________________________________
<TABLE>
<CAPTION>
Lehman Brothers Lipper Flexible
NestEgg Aggregate Portfolio
Date 2000 Bond Index Fund Index
---- ---- --------------- ---------------
<S> <C> <C> <C>
2/28/94 10,000 10,000
8/31/94 10,030.57 9,857 9,968
2/28/95 10,275.22 10,178 10,047
8/31/95 11,131.48 10,971 11,388
2/29/96 11,681.94 11,424 12,268
8/31/96 11,758.39 11,420 12,499
2/28/97 12,553.50 12,034 14,036
8/31/97 13,287.44 12,564 15,337
2/28/98 14,143.71 13,283 17,038
8/31/98 14,220.17 13,892 15,961
2/28/99 15,122.30 14,114 18,657
</TABLE>
ANNUALIZED RATES OF RETURN FOR PERIODS
ENDING FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Lehman Brothers Lipper Flexible
NestEgg Aggregate Portfolio
2000 Bond Index (1) Fund Index (3)
---- --------------- ---------------
<S> <C> <C> <C>
1 Year 6.92% 6.27% 9.50%
3 Years 8.99% 7.31% 14.99%
Since Inception (3/1/94) 8.63% 7.14% 13.28%
</TABLE>
<TABLE>
<CAPTION>
Lehman Brothers Lipper Flexible
NestEgg Aggregate Portfolio
Date 2010 Bond Index Fund Index
---- ---- --------------- ---------------
<S> <C> <C> <C>
2/28/94 10,000 10,000
8/31/94 10,093.27 9,857 9,968
2/28/95 10,391.78 10,178 10,047
8/31/95 11,585.81 10,971 11,388
2/29/96 12,499.99 11,424 12,268
8/31/96 12,649.24 11,420 12,499
2/28/97 14,048.49 12,034 14,036
8/31/97 15,261.18 12,564 15,337
2/28/98 16,753.72 13,283 17,038
8/31/98 16,361.93 13,892 15,961
2/28/99 18,507.45 14,114 18,657
</TABLE>
ANNUALIZED RATES OF RETURN FOR PERIODS
ENDING FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Lehman Brothers Lipper Flexible
NestEgg Aggregate Portfolio
2010 Bond Index (1) Fund Index (3)
----- --------------- ---------------
<S> <C> <C> <C>
1 Year 10.47% 6.27% 9.50%
3 Years 13.98% 7.31% 14.99%
Since Inception (3/1/94) 13.11% 7.14% 13.28%
</TABLE>
2
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
- --------------------------------
NestEgg Funds February 28, 1999
________________________________________________________________________
<TABLE>
<CAPTION>
Wilshire Lipper Flexible
NestEgg 5000 Equity Portfolio
Date 2020 Index Fund Index
---- ---- ----------- ---------------
<S> <C> <C> <C>
2/28/94 10,000 10,000
8/31/94 10,127.10 10,185 9,968
2/28/95 10,487.27 10,528 10,047
8/31/95 11,843.20 12,423 11,388
2/29/96 12,966.08 14,131 12,268
8/31/96 13,135.57 14,562 12,499
2/28/97 14,957.60 17,265 14,036
8/31/97 16,588.95 19,990 15,337
2/28/98 18,665.22 23,218 17,038
8/31/98 17,711.83 20,524 15,961
2/28/99 21,038.09 26,547 18,657
</TABLE>
ANNUALIZED RATES OF RETURN FOR PERIODS
ENDING FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Wilshire Lipper Flexible
NestEgg 5000 Equity Portfolio
2020 Index (2) Fund Index (3)
----- ----------- ---------------
<S> <C> <C> <C>
1 Year 12.71% 14.34% 9.50%
3 Years 17.51% 23.38% 14.99%
Since Inception (3/1/94) 16.05% 21.56% 13.28%
</TABLE>
<TABLE>
<CAPTION>
Wilshire Lipper Flexible
NestEgg 5000 Equity Portfolio
Date 2030 Index Fund Index
---- ---- ----------- ---------------
<S> <C> <C> <C>
2/28/94 10,000 10,000
8/31/94 10,116.27 10,185 9,968
2/28/95 10,465.11 10,528 10,047
8/31/95 12,023.25 12,423 11,388
2/29/96 13,348.83 14,131 12,268
8/31/96 13,534.88 14,562 12,499
2/28/97 15,720.92 17,265 14,036
8/31/97 17,651.15 19,990 15,337
2/28/98 20,232.55 23,218 17,038
8/31/98 18,790.69 20,524 15,961
2/28/99 23,069.75 26,547 18,657
</TABLE>
ANNUALIZED RATES OF RETURN FOR PERIODS
ENDING FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Wilshire Lipper Flexible
NestEgg 5000 Equity Portfolio
2030 Index (2) Fund Index (3)
----- ----------- ---------------
<S> <C> <C> <C>
1 Year 14.02% 14.34% 9.50%
3 Years 20.01% 23.38% 14.99%
Since Inception (3/1/94) 18.21% 21.56% 13.28%
</TABLE>
3
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
- --------------------------------
NestEgg Funds February 28, 1999
________________________________________________________________________
<TABLE>
<CAPTION>
Wilshire Lipper Flexible
NestEgg 5000 Equity Portfolio
Date 2040 Index Fund Index
---- ---- ----------- ---------------
<S> <C> <C> <C>
2/28/94 10,000 10,000
8/31/94 10,254.46 10,185 9,968
2/28/95 10,610.69 10,528 10,047
8/31/95 12,264.63 12,423 11,388
2/29/96 13,765.91 14,131 12,268
8/31/96 14,096.70 14,562 12,499
2/28/97 16,666.67 17,265 14,036
8/31/97 18,905.86 19,990 15,337
2/28/98 21,908.40 23,218 17,038
8/31/98 19,821.89 20,524 15,961
2/28/99 25,318.07 26,547 18,657
</TABLE>
ANNUALIZED RATES OF RETURN FOR PERIODS
ENDING FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Wilshire Lipper Flexible
NestEgg 5000 Equity Portfolio
2040 Index (2) Fund Index (3)
----- ----------- ---------------
<S> <C> <C> <C>
1 Year 15.56% 14.34% 9.50%
3 Years 22.52% 23.38% 14.99%
Since Inception (3/1/94) 20.43% 21.56% 13.28%
</TABLE>
(1) The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Corporate Index and the Lehman Brothers Mortgage-Backed
Securities Index and includes treasury issues, agency issues, corporate
bond issues and mortgage backed securities.
(2) The Wilshire 5000 Equity Index is composed of domestic equity securities of
companies in addition to a very small number of limited partnerships and
REITS.
(3) The Lipper Flexible Portfolio Fund Index's returns represent an average of
returns of certain mutual funds investing in domestic common stocks, bonds
and money market instruments in an asset allocation strategy as tracked by
Lipper, Inc.
The graphs above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
Performance for the NestEgg Funds, which commenced operations on January 4,
1999, is based on the actual performance of the LifePath Master Portfolio for
the period of March 1, 1994 through January 3, 1999. The Master Portfolio's
performance has not been adjusted to reflect the fees and expenses which apply
to the NestEgg Funds. The performance would have been significantly lower had
such fees and expenses been taken into account in calculating the performance.
Past performance in not a prediction of future results. The Fund's investment
return and principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original purchase price.
4
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
- --------------------------------
NestEgg Funds February 28, 1999
________________________________________________________________________
The charts above show the average annual returns for the NestEgg Funds. The
NestEgg Funds invest all of their investable assets in the corresponding Master
Portfolios. Performance shown above is the actual performance of each NestEgg
Fund since January 4, 1999 (its inception) and actual performance of the
corresponding Master Portfolio managed by Barclays Global Fund Advisors (BGFA):
LifePath 2000 Master Portfolio, LifePath 2010 Master Portfolio, LifePath 2020
Master Portfolio, LifePath 2030 Master Portfolio, and LifePath 2040 Master
Portfolio. Each Master Portfolio's performance has not been adjusted to reflect
the fees and expenses which apply to the applicable NestEgg Funds. The
performance would have been lower had such fees and expenses been taken into
account in calculating the performance. The one-year total returns represent
performance of the Master Portfolios from March 1, 1998 through January 3, 1999
and the NestEgg Fund from January 4, 1999 through February 28, 1999. The three-
year returns represent performance of the Master Portfolios from March 1, 1996
through January 3, 1999. The five-year return (since inception) represents the
performance of the Master Portfolios from March 1, 1994 through January 3, 1999
and the NestEgg Funds from January 4, 1999 through February 28, 1999.
The NestEgg Funds are organized as "feeder" funds in a "master-feeder"
structure. Instead of investing directly in the individual securities in the
portfolio, the feeder funds, which are offered to the public, hold interests in
the net assets of the Master Portfolios. It is the Master Portfolios that
actually invests in the individual securities. References to "the fund" are to
the feeder funds or the Master Portfolios.
Fund Aggregate
Performance Total Return
As of 2/28/99 (Since Inception on 1/4/99)
- ------------- ----------------------------
NestEgg 2000 (1.10%)
NestEgg 2010 ( .80%)
NestEgg 2020 ( .70%)
NestEgg 2030 ( .80%)
NestEgg 2040 ( .50%)
Aggregate annual total returns above represent the NestEgg Funds' increase in
value during the time periods noted above. These figures assume that dividends
have been reinvested in the Funds and capital gains have been distributed to
shareholders at net asset value. The Funds' past performance is no guarantee of
future results. The investment return and principal value of shares of the
Funds will vary with changes in market conditions. Shares of the Funds may be
worth more or less than their original cost when they are redeemed.
5
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
- --------------------------------
NestEgg Funds February 28, 1999
________________________________________________________________________
The NestEgg Funds' objective is growing assets while taking on levels of risk
appropriate to investors' time horizons. The Funds' strategies assume that the
investor will begin to withdraw his or her investment in the decade included in
the Fund's name. For example, investors in the NestEgg 2040 Fund plan to
withdraw their investments in the year 2040. Assets in this Fund, therefore,
are invested almost entirely in stocks because investors can wait out the short-
term ups and downs of the markets in return for greater potential rewards over
the long term. By contrast, assets in the NestEgg 2000 Fund are invested more
conservatively, with an emphasis on short-term, low-risk, low-return bonds and
money market instruments.
The models used to manage the NestEgg Funds' assets are "strategic" and
"tactical."
Strategic asset allocation techniques affect 75% of the NestEgg Funds' total
asset allocation. The strategic model focuses on long-term asset allocation by
comparing the potential risks and returns for each asset class based on the
Funds' different time horizons. As each Fund nears its target date, the asset
allocation becomes more conservative, shifting to less risky investments -- such
as short-term bonds or money market investments. Short-term volatility in the
markets has only a small effect on a Fund's long-term strategic allocation. The
progression to less risky assets is an ongoing process; 40 years from now, the
asset allocation of the NestEgg 2040 Fund will look very similar to the asset
allocation of the NestEgg 2000 Fund today.
Tactical asset allocation techniques affect 25% of the NestEgg Funds' total
asset allocation. The more conservative tactical approach shifts assets from
long-term bonds to short-term bonds and money market investments as the Fund
nears its target date; the more aggressive tactical approach shifts assets among
stocks, bonds, and cash.
During the past fiscal year, the NestEgg 2030 and 2040 Funds invested primarily
in companies that showed greater long-term potential for growth. It was only
toward the end of the fiscal year, as potential earnings from these stocks
appeared less certain, that assets were reallocated to more stable stock
investments with higher current earnings.
The NestEgg 2020 and 2010 Funds invested more evenly among stocks and bonds.
They benefited from both significant gains in large-company stock values and
strong bond returns.
The NestEgg 2000 Fund's money market investments remained stable throughout the
year, unaffected by the dramatic swings typical of the riskier asset classes.
Assets in the portfolio were allocated as follows on February 28, 1999:
<TABLE>
<CAPTION>
Common U.S. Money
Fund Stocks Bonds Market*
- --------------- ------- ------ --------
<S> <C> <C> <C>
NestEgg 2000 20.64% 77.81% 7.60%
NestEgg 2010 45.03% 53.24% 8.75%
NestEgg 2020 66.80% 32.24% 8.31%
NestEgg 2030 81.88% 17.54% 6.63%
NestEgg 2040 97.60% 2.46% 9.04%
</TABLE>
*The percentage of the Funds' assets that are invested in money market
instruments does not include other assets and liabilities of the Funds.
6
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
- --------------------------------
NestEgg Funds February 28, 1999
________________________________________________________________________
The returns of the NestEgg Funds varied in comparison to their benchmark, the
Lipper Flexible Portfolio Fund Index. This index represents the average
performance of all balanced funds and does not take into account the different
investment objectives of the NestEgg Funds. For the fiscal year that ended
February 28, 1999, the NestEgg 2000 Fund lagged behind the index, due primarily
to its significant investments in U.S. bonds and money market instruments. The
NestEgg 2010, 2020, 2030, and 2040 Funds performed better than the index for the
past fiscal year, due primarily to their significant investments in U.S. stocks.
The NestEgg Funds will continue to invest in the asset classes appropriate to
their short- and long-term goals in the year ahead.
7
<PAGE>
NESTEGG FUNDS
Statements of Assets and Liabilities
February 28, 1999
<TABLE>
<CAPTION>
NestEgg NestEgg NestEgg
2000 2010 2020
Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investment in corresponding Master Portfolio at value (Note 1) $ 1,173,728 $ 2,489,969 $ 6,344,935
Receivable for capital shares sold 130,871 217,752 754,682
Receivable from Intrust Bank, N.A. 16,787 20,917 30,896
Prepaid offering expense 11,084 19,152 66,951
--------------- --------------- ---------------
Total Assets 1,332,470 2,747,790 7,197,464
--------------- --------------- ---------------
Liabilities:
Payable for capital shares redeemed - - 11,436
Accrued expenses and other payables:
Investment advisory fees 240 463 1,309
Shareholder servicing fees 133 263 725
Other payables and accrued expenses 16,002 18,202 35,163
--------------- --------------- ---------------
Total Liabilities 16,375 18,928 48,633
--------------- --------------- ---------------
Net Assets $ 1,316,095 $ 2,728,862 $ 7,148,831
=============== =============== ===============
Net Assets consist of:
Paid in Capital $ 1,336,328 $ 2,791,063 $ 7,345,169
Accumulated undistributed net investment income/(loss) 4,454 8,054 7,304
Accumulated undistributed net realized gains/(losses) on investments (138) (2,987) (8,509)
Net unrealized appreciation/(depreciation) from investments (24,549) (67,268) (195,133)
--------------- --------------- ---------------
Net Assets $ 1,316,095 $ 2,728,862 $ 7,148,831
=============== =============== ===============
Outstanding shares of Beneficial Interest: Institutional
Service Class 133,023 275,037 719,709
=============== =============== ===============
Net Asset Value:
Offering and redemption price per share $ 9.89 $ 9.92 $ 9.93
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
NESTEGG FUNDS
Statements of Assets and Liabilities
February 28, 1999
<TABLE>
<CAPTION>
NestEgg NestEgg
2030 2040
Fund Fund
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investment in corresponding Master Portfolio at value (Note 1) $ 1,138,715 $ 800,790
Receivable for capital shares sold 50,819 67,845
Receivable from Intrust Bank, N.A. 16,182 15,358
Prepaid offering expense 7,631 6,620
------------------- ----------------------
Total Assets 1,213,347 890,613
------------------- ----------------------
Liabilities:
Payable for capital shares redeemed - -
Accrued expenses and other payables:
Investment advisory fees 153 152
Shareholder servicing fees 86 102
Other payables and accrued expenses 15,067 14,661
------------------- ----------------------
Total Liabilities 15,306 14,915
------------------- ----------------------
Net Assets $ 1,198,041 $ 875,698
=================== ======================
Net Assets consist of:
Paid in Capital $ 1,227,190 $ 900,465
Accumulated undistributed net investment income/(loss) 433 (653)
Accumulated undistributed net realized gains/(losses) on investments (910) (523)
Net unrealized appreciation/(depreciation) from investments (28,672) (23,591)
------------------- ----------------------
Net Assets $ 1,198,041 $ 875,698
=================== ======================
Outstanding units of Beneficial Interest (Shares): Institutional
Service Class 120,826 88,031
=================== ======================
Net Asset Value:
Offering and redemption price per share $ 9.92 $ 9.95
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
NESTEGG FUNDS
Statements of Operations
For the period ended February 28, 1999 (a)
<TABLE>
<CAPTION>
NestEgg NestEgg
2030 2040
Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Investment Income allocated from corresponding Master Portfolio
Interest $ 1,012 $ 179
Dividends 1,028 1,076
Expenses (Note 3) (585) (514)
------------------- -----------------
Net Investment Income allocated from corresponding Master Portfolio 1,455 741
Expenses: (Note 3)
Audit fees 7,306 7,247
Printing expense 1,377 1,329
Offering expense 1,808 1,744
Trustee expense 1,170 1,170
Legal expense 829 454
Insurance expense 188 810
12b-1 fees 255 233
Shareholder servicing fees 255 233
Administration fees 204 185
Fund accounting fees 2,108 2,112
Investment advisory fees 154 151
Transfer agent fees 926 924
Other 1,252 710
------------------- -----------------
Total expenses before waivers/ reimbursements 17,832 17,302
Less expenses waived/reimbursed (16,810) (15,908)
------------------- -----------------
Net expenses 1,022 1,394
------------------- -----------------
Net Investment Income (Loss) 433 (653)
------------------- -----------------
Realized and Unrealized Gains/(Losses) on Investments allocated
from corresponding Master Portfolio:
Net realized gains/(losses) on investment transactions (910) (523)
Net change in unrealized appreciation/(depreciation) of investments (28,672) (23,591)
------------------- -----------------
Net realized and unrealized gains/(losses) on investments (29,582) (24,114)
------------------- -----------------
Increase/(Decrease) in Net Assets Resulting from Operations $ (29,149) $ (24,767)
=================== =================
</TABLE>
(a) The Funds commenced operations on January 4, 1999
See Notes to Financial Statements.
10
<PAGE>
NESTEGG FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
NestEgg NestEgg NestEgg
2000 2010 2020
Fund Fund Fund
-----------------------------------------------------------------
Period Ended (a) Period Ended (a) Period Ended (a)
February 28, 1999 February 28, 1999 February 28, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 4,454 $ 8,054 $ 7,304
Net realized gains/(losses) on investment transactions (138) (2,987) (8,509)
Net change in unrealized appreciation/
(depreciation) of investments (24,549) (67,268) (195,133)
------------------ ------------------ ------------------
Change in net assets resulting from operations (20,233) (62,201) (196,338)
------------------ ------------------ ------------------
Capital Share Transactions:
Proceeds from shares issued 1,403,579 3,316,827 7,457,828
Cost of shares redeemed (67,251) (525,764) (112,659)
------------------ ------------------ ------------------
Change in net assets from capital share transactions 1,336,328 2,791,063 7,345,169
------------------ ------------------ ------------------
Change in net assets 1,316,095 2,728,862 7,148,831
Net Assets:
Beginning of period (a) - - -
------------------ ------------------ ------------------
End of period $ 1,316,095 $ 2,728,862 $ 7,148,831
================== ================== ==================
Share Transactions:
Issued 139,775 328,084 731,007
Redeemed (6,752) (53,047) (11,298)
------------------ ------------------ ------------------
Change in shares 133,023 275,037 719,709
================== ================== ==================
</TABLE>
(a) The Fund commenced operations on January 4, 1999
See Notes to Financial Statements.
11
<PAGE>
NESTEGG FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
NestEgg NestEgg
2030 2040
Fund Fund
------------------------ ------------------------
Period Ended (a) Period Ended (a)
February 28, 1999 February 28, 1999
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 433 $ (653)
Net realized gains/(losses) on investment transactions (910) (523)
Net change in unrealized appreciation/
(depreciation) of investments (28,672) (23,591)
------------------------ ------------------------
Change in net assets resulting from operations (29,149) (24,767)
------------------------ ------------------------
Capital Share Transactions:
Proceeds from shares issued 1,327,190 900,465
Cost of shares redeemed (100,000) -
------------------------ ------------------------
Change in net assets from capital share transactions 1,227,190 900,465
------------------------ ------------------------
Change in net assets 1,198,041 875,698
Net Assets:
Beginning of period (a) - -
------------------------ ------------------------
End of period $ 1,198,041 $ 875,698
======================== ========================
Share Transactions:
Issued 130,886 88,031
Redeemed (10,060) -
------------------------ ------------------------
Change in shares 120,826 88,031
======================== ========================
</TABLE>
(a) The Fund commenced operations on January 4, 1999
See Notes to Financial Statements.
12
<PAGE>
NESTEGG FUNDS
Notes to Financial Statements
February 28, 1999
_______________________________________________________________________________
1. Organization:
The INTRUST Funds Trust (the "Trust") was established as a Delaware business
trust and is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as an open-end, diversified management investment company.
The Trust currently offers eleven series, including the NestEgg Funds. The
accompanying financial statements and financial highlights are those of the
NestEgg 2000 Fund, the NestEgg 2010 Fund, the NestEgg 2020 Fund, the NestEgg
2030 Fund, and the NestEgg 2040 (individually a "Fund", collectively the
"NestEgg Funds").
Each NestEgg Fund seeks to provide long-term investors with an asset allocation
strategy designed to maximize assets for retirement or for other purposes
consistent with the quantitatively measured risk that investors, on average, may
be willing to accept given their investment time horizons. The Funds'
investment objectives are as follows:
Fund Objective
---- ---------
NestEgg 2000 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2000.
NestEgg 2010 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2010.
NestEgg 2020 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2020.
NestEgg 2030 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2030.
NestEgg 2040 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2040.
Each NestEgg Fund seeks to achieve its objective by investing all of its
investable assets in a corresponding portfolio (each a "Master Portfolio") :
LifePath 2000 Master Portfolio, LifePath 2010 Master Portfolio, LifePath 2020
Master Portfolio, LifePath 2030 Master Portfolio, and LifePath 2040 Master
Portfolio having the same investment objective as the corresponding NestEgg
Fund. Each Fund's investment in its corresponding Master Portfolio reflects
the Fund's interest in the net assets of the Master Portfolio. The percentage
of the corresponding LifePath Master Portfolios owned by each Fund as of
February 28, 1999 was approximately 1.01% for NestEgg 2000; .1.02% for NestEgg
2010; 1.73% for NestEgg 2020; .41% for NestEgg 2030; and .16% for NestEgg 2040.
The financial statements of the Master Portfolios, including their schedules of
investments, are included elsewhere in this report and should be read in
conjunction with the NestEgg Funds' financial statements.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
NestEgg Funds in preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements 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 for the
period. Actual results could differ from those estimates.
Continued
13
<PAGE>
NESTEGG FUNDS
Notes to Financial Statements
February 28, 1999
_______________________________________________________________________________
Security Valuation
Valuation of securities held by the Master Portfolios is discussed in the notes
to the Master Portfolios' financial statements included elsewhere in this
report.
Investment income and expenses
The NestEgg Funds record daily their proportionate share of the Master
Portfolios' income, expenses, and realized and unrealized gains and losses. In
addition, the Funds accrue their own expenses.
Offering Costs
Costs incurred in connection with the offering and initial registration of the
Funds have been accounted for as a deferred charge until operations begin and
thereafter amortized to expense over twelve months on a straight-line basis
beginning with the commencement of each Fund's operations.
Distributions to Shareholders
The NestEgg Funds intend to declare and to pay dividends from net investment
income quarterly. Distributions from net realized capital gains, if any, are
distributed at least annually.
Distributions from net investment income and from net realized capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
composition of net assets based on their federal tax-basis treatment; temporary
differences do not require reclassifications. To the extent they exceed net
investment income and net realized capital gains for tax purposes, they are
reported as distributions of capital.
Federal Income Taxes
The Trust treats each Fund as a separate entity for federal income tax purposes.
Each Fund intends to qualify as a regulated investment company by complying with
the provisions available to certain investment companies as defined in
applicable sections of the Internal Revenue Code, and to make distributions from
net investment income and from net realized capital gains sufficient to relieve
it from all, or substantially all, federal income taxes.
3. Investment Advisory, Administration, and Distribution Agreements:
The Trust and INTRUST Bank, N.A. (the "Adviser") are parties to an investment
advisory agreement under which the Adviser is entitled to receive an annual fee
up to 0.15% of the average daily net assets of each NestEgg Fund when the Fund
invests all of its investable assets in a Master Portfolio or another investment
company. This fee is computed daily and paid monthly. The investment advisory
agreement for the NestEgg Funds also provides for an investment advisory fee up
to 1.25% of the average daily net assets of the Fund if the Fund does not invest
all of its assets in the Master Portfolio or another investment company.
Continued
14
<PAGE>
NESTEGG FUNDS
Notes to Financial Statements
February 28, 1999
_______________________________________________________________________________
The Funds and BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services
(the "Administrator") are parties to an administration agreement under which the
Administrator provides services for a fee that is computed daily and paid
monthly, at an annual rate of 0.20% of each NestEgg Fund's average daily net
assets. Management Fees of 0.55% are paid at the Master Portfolio level.
The Funds and BISYS Fund Services (the "Distributor") are parties to a
distribution agreement under which shares of the Funds are sold on a continuous
basis. Each fund is subject to a distribution plan (the "Plan") pursuant to
Rule 12b-1 under the 1940 Act. As provided under the Plan, the Fund will pay
the Distributor up to an annual rate of 0.25% of the average daily net assets
of the Institutional Service Class shares of the Funds and 0.75% of the average
daily net assets of the Institutional Premium Class shares of the Funds.
Other financial organizations ("Service Organizations") also may provide
administrative services for the Funds, such as maintaining shareholder accounts
and records. The Funds may pay fees to Service Organizations in amounts up to
an annual rate of 0.25% of the daily net asset value of the Funds' shares owned
by shareholders with whom the Service Organizations have a servicing
relationship.
Fees may be voluntarily reduced to assist the Funds in maintaining competitive
expense ratios. Such fees are permanently waived.
For the period ended, February 28, 1999, the Adviser reimbursed the following
amounts:
<TABLE>
<CAPTION>
NestEgg NestEgg NestEgg NestEgg NestEgg
2000 2010 2020 2030 2040
Fund Fund Fund Fund Fund
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Reimbursed Expenses 16,787 20,917 30,896 16,182 15,359
</TABLE>
Additional information regarding fees waived for the period ended
February 28, 1999 is as follows:
<TABLE>
<CAPTION>
NestEgg NestEgg NestEgg
2000 2010 2020
Fund Fund Fund
------- ------- -------
<S> <C> <C> <C>
Administration Fees Waived $ 320 $ 630 $ 1,745
12b-1 Fees Waived 400 788 2,182
Shareholder Services Fees Waived 267 526 1,457
</TABLE>
<TABLE>
<CAPTION>
NestEgg NestEgg
2030 2040
Fund Fund
------- -------
<S> <C> <C>
Administration Fees Waived $ 204 $ 185
12b-1 Fees Waived 255 233
Shareholder Services Fees Waived 169 131
</TABLE>
Continued
15
<PAGE>
NESTEGG FUNDS
Notes to Financial Statements
February 28, 1999
_______________________________________________________________________________
4. Shares of Beneficial Interest:
Currently, shares of the Funds are offered through two classes: Institutional
Service and Institutional Premium. As of and for the period ended February 28,
1999, no shareholders were in the Institutional Premium class. Shareholders
are entitled to one vote for each full share held and will vote in the aggregate
and not by class or series, except as otherwise expressly required by law or
when the Board of Trustees has determined that the matter to be voted on affects
only the interest of shareholders of a particular class or series.
5. Federal Income Tax Information:
Distributions of investment company taxable income (regardless of whether
derived from dividends, interest or short-term capital gains) will generally be
taxable to shareholders as ordinary income. Distributions of net long-term
capital gains properly designated by a Fund as capital gain dividends will be
taxable as long-term capital gains, regardless of how long a shareholder has
held his Fund's shares. Distributions are taxable in the same manner whether
received in additional shares or in cash.
Continued
16
<PAGE>
NESTEGG FUNDS
Financial Highlights
<TABLE>
<CAPTION>
NestEgg NestEgg NestEgg
2000 2010 2020
Fund Fund Fund
-----------------------------------------------------------------------
Period Ended (a) Period Ended (a) Period Ended (a)
February 28, 1999 February 28, 1999 February 28, 1999
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 10.00 $ 10.00 $ 10.00
------------------ ------------------ ------------------
Investment Activities:
Net investment income 0.03 0.03 0.01
Net realized and unrealized gains/
(losses) from investments (0.14) (0.11) (0.08)
------------------ ------------------ ------------------
Total from Investment Activities (0.11) (0.08) (0.07)
------------------ ------------------ ------------------
Net Asset Value, end of period $ 9.89 $ 9.92 $ 9.93
================== ================== ==================
Total Return (1.10%)(b) (0.80%) (b) (0.70%) (b)
Ratios/Supplemental Data:
Net assets, end of year (000's) $ 1,316 $ 2,729 $ 7,149
Ratios to average net assets: (d)
Expenses 1.50% (c) 1.29% (c) 1.69% (c)
Net investment income 2.68% (c) 2.46% (c) 0.81% (c)
Expenses* 12.20% (c) 8.26% (c) 5.69% (c)
</TABLE>
____________________________
* During the period, certain fees were voluntarily reduced and/ or
reimbursed. If such voluntary fee reductions and/ or reimbursements had
not occurred, the ratio would have been as indicated.
(a) The fund commenced operations on January 4, 1999
(b) Not annualized.
(c) Annualized.
(d) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses of
the corresponding Master Portfolios.
See Notes to Financial Statements.
17
<PAGE>
NESTEGG FUNDS
Financial Highlights
<TABLE>
<CAPTION>
NestEgg NestEgg
2030 2040
Fund Fund
--------------------------------------------------------
Period Ended (a) Period Ended (a)
February 28, 1999 February 28, 1999
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 10.00 $ 10.00
------------------------ ------------------------
Investment Activities:
Net investment income/(loss) - ** (0.01)
Net realized and unrealized gains/(losses) from investments (0.08) (0.04)
------------------------ ------------------------
Total from Investment Activities (0.08) (0.05)
------------------------ ------------------------
Net Asset Value, end of period $ 9.92 $ 9.95
======================== ========================
Total Return (0.80%)(b) (0.50%)(b)
Ratios/Supplemental Data:
Net assets, end of year (000's) $ 1,198 $ 876
Ratios to average net assets: (d)
Expenses 1.50% (c) 1.50% (c)
Net investment income 0.40% (c) (0.51%)(c)
Expenses* 17.19% (c) 14.00% (c)
</TABLE>
____________________
* During the period, certain fees were voluntarily reduced and/ or
reimbursed. If such voluntary fee reductions and/ or reimbursements had
not occurred, the ratio would have been as indicated.
** The amount is less than $0.005
(a) The fund commenced operations on January 4, 1999
(b) Not annualized.
(c) Annualized.
(d) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses of
the corresponding Master Portfolios.
See Notes to Financial Statements.
18
<PAGE>
Independent Auditors' Report
To the Shareholders and Board of Trustees
INTRUST Funds Trust:
We have audited the accompanying statements of assets and liabilities of NestEgg
2000 Fund, NestEgg 2010 Fund, NestEgg 2020 Fund, NestEgg 2030 Fund and NestEgg
2040 Fund (five of the series comprising the INTRUST Funds Trust) as of February
28, 1999, the related statements of operations, changes in net assets and the
financial highlights for the period from January 4, 1999 (commencement of
operations) to February 28, 1999. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of NestEgg 2000 Fund, NestEgg 2010
Fund, NestEgg 2020 Fund, NestEgg 2030 Fund and NestEgg 2040 Fund as of February
28, 1999, the results of their operations, the changes their net assets and
their financial highlights for the period from January 4, 1999 to February 28,
1999, in conformity with generally accepted accounting principles.
/s/ KPMG LLP
San Francisco, California
April 2, 1999
19
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ----------------- -------------------- -------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS
Percent of Net Assets 20.64% 45.03% 66.80% 81.88% 97.60%
ADVERTISING
Percent of Net Assets 0.03% 0.05% 0.07% 0.10% 0.12%
Omnicom Group 211 $ 13,979 1,065 $ 70,556 2,665 $ 176,556 2,345 $ 155,355 5,656 $ 374,709
Outdoor Systems Inc 450 12,572 980 27,379 1,524 42,577 2,254 62,971 4,615 128,931
R.R. Donnelley Corp 36 540 252 3,780 550 8,250 489 7,335 1,220 18,300
Snyder Communications Inc 200 6,850 352 12,056 614 21,030 625 21,406 1,413 48,395
Young & Rubicam Inc 100 3,775 264 9,966 438 16,535 446 16,837 883 33,333
-------- ---------- ---------- ---------- ----------
TOTAL ADVERTISING
- VALUE $ 37,716 $ 123,737 $ 264,948 $ 263,904 $ 603,668
- COST $ 24,567 $ 67,966 $ 126,340 $ 150,248 $ 360,294
AEROSPACE & DEFENSE
Percent of Net Assets 0.18% 0.46% 0.72% 0.88% 1.02%
Allied Signal Inc 592 $ 24,494 4,325 $ 178,947 10,116 $ 418,549 9,422 $ 389,834 19,237 $ 795,930
Boeing Co 1,102 39,190 7,737 275,147 18,248 648,945 16,842 598,943 34,605 1,230,639
Briggs & Stratton Corp 42 2,050 158 7,712 452 22,063 459 22,405 854 41,686
Coltec Industries 100 1,800 716 12,888 1,327 23,886 1,161 20,898 2,650 47,700
Cordant Technologies Inc 232 9,034 440 17,133 868 33,798 821 31,968 1,766 68,763
GenCorp Inc 0 -- 0 -- 425 8,527 0 -- 0 --
General Dynamics Corp 116 7,011 959 57,960 2,212 133,688 2,114 127,765 4,327 261,512
Gulfstream Aerospace Corp 300 13,425 528 23,628 1,152 51,552 982 43,945 2,120 94,869
Lockheed Martin Corp 410 15,452 2,983 112,422 6,950 261,928 6,436 242,556 13,364 503,655
Newport News Shipbuilding 64 1,852 257 7,437 539 15,597 415 12,009 747 21,616
Northrop Grumman Corp 129 8,038 529 32,963 1,243 77,454 1,169 72,843 2,348 146,309
Primex Technologies Inc 47 1,953 49 2,037 94 3,907 76 3,159 111 4,613
Rockwell International Corp 220 9,776 1,564 69,500 3,639 161,708 3,323 147,665 6,506 289,109
Sequa Corp Class A 110 5,177 0 -- 120 5,648 91 4,283 0 --
Stewart & Stevenson Services 364 3,049 334 2,797 434 3,635 326 2,730 746 6,248
Sundstrand Corp 326 22,066 669 45,283 1,043 70,598 1,366 92,461 2,818 190,742
Textron Inc 237 18,486 1,249 97,422 2,976 232,128 2,724 212,471 5,638 439,763
United Technologies Corp 266 32,951 1,456 180,362 3,582 443,720 3,200 396,399 7,305 904,906
-------- ---------- ---------- ---------- ----------
TOTAL AEROSPACE &
DEFENSE
- VALUE $215,804 $1,123,638 $2,617,331 $2,422,334 $5,048,060
- COST $199,465 $1,013,480 $2,262,531 $2,087,551 $4,927,763
AIRLINES
Percent of Net Assets 0.21% 0.37% 0.54% 0.69% 0.81%
Airborne Freight Corp 300 $ 11,700 704 $ 27,456 1,315 $ 51,285 1,250 $ 48,750 2,650 $ 103,349
Airtran Holdings Inc 300 1,013 176 594 350 1,181 178 601 619 2,089
AMR Corp 244 13,527 1,367 75,783 3,269 181,225 3,072 170,303 6,249 346,428
British Airways PLC ADR (UK) 690 51,060 2,500 185,000 4,895 362,230 4,829 357,345 9,499 702,925
Comair Holdings Inc 300 11,288 704 26,488 1,402 52,750 1,339 50,380 2,826 106,327
Continental Airlines Class B 300 10,388 528 18,282 1,227 42,485 1,250 43,281 2,561 88,674
Delta Air Lines Inc 252 15,325 1,253 76,198 2,776 168,816 2,525 153,551 5,105 310,447
</TABLE>
20
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ----------------- -------------------- -------------------- -----------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
FDX Corp 212 $ 20,246 1,127 $107,629 2,663 $ 254,317 2,474 $ 236,266 5,118 $ 488,768
Japan Air Lines Co ADR (Japan) 9,808 51,492 39,440 207,060 91,775 481,819 90,874 477,088 180,587 948,081
KLM Royal Dutch Airlines ADR 294 8,221 1,156 32,358 2,272 63,602 1,997 55,926 4,179 117,000
(Netherlands)
Northwest Airlines Corp Class A 300 7,500 616 15,400 1,152 28,800 1,786 44,650 3,710 92,749
Southwest Airlines Co 349 10,514 2,258 68,022 5,431 163,609 4,887 147,220 11,325 341,165
UAL Corp 400 23,900 704 42,064 1,052 62,857 1,071 63,992 3,091 184,686
USAirways Group Inc 113 5,353 628 29,752 1,478 70,020 1,275 60,403 2,952 139,850
-------- -------- ---------- ---------- ----------
TOTAL AIRLINES
- VALUE $241,527 $912,086 $1,984,996 $1,909,756 $3,972,538
- COST $293,739 $981,399 $2,082,516 $2,043,757 $4,167,193
APPAREL
Percent of Net Assets 0.03% 0.10% 0.15% 0.18% 0.20%
Fruit of the Loom Inc Class A 97 $ 1,231 530 $ 6,724 1,277 $ 16,202 1,006 $ 12,764 2,368 $ 30,044
Hartmarx Corp 81 349 202 871 341 1,471 316 1,363 546 2,355
Land's End Inc 0 -- 0 -- 479 14,520 0 -- 0 --
Liz Claiborne Inc 81 2,729 555 18,697 1,179 39,718 1,109 37,359 2,198 74,044
Nike Inc Class B 293 15,712 2,236 119,906 5,174 277,456 4,806 257,721 9,857 528,581
Nine West Group Inc 200 4,488 264 5,924 263 5,901 357 8,010 883 19,812
OshKosh B'Gosh Class A 52 988 86 1,634 400 7,600 152 2,888 392 7,448
Phillips Van Heusen Corp 0 -- 0 -- 359 2,176 259 1,570 0 --
Reebok International Ltd 37 597 409 6,595 1,016 16,383 913 14,722 1,854 29,896
Russell Corp 65 1,268 283 5,519 647 12,617 616 12,012 1,146 22,347
Stride Rite Corp 63 650 330 3,403 783 8,075 631 6,507 1,281 13,210
VF Corp 120 5,775 956 46,008 2,209 106,308 2,016 97,020 4,121 198,322
Warnaco Group Inc Class A 300 6,750 892 20,070 1,502 33,795 1,339 30,128 2,826 63,584
-------- -------- ---------- ---------- ----------
TOTAL APPAREL
- VALUE $ 40,537 $235,351 $ 542,222 $ 482,064 $ 989,643
- COST $ 41,442 $232,952 $ 519,806 $ 458,591 $1,073,745
AUTO PARTS & EQUIPMENT
Percent of Net Assets 0.09% 0.22% 0.33% 0.40% 0.47%
Bandag Inc 0 $ -- 88 $ 2,789 175 $ 5,545 89 $ 2,820 265 $ 8,397
Bandag Inc Class A 100 2,688 88 2,365 175 4,703 179 4,811 353 9,487
Breed Technologies Inc 0 -- 0 -- 0 -- 0 -- 89 362
Cooper Tire & Rubber Co 65 1,284 614 12,127 1,401 27,670 1,318 26,030 2,587 51,093
Dana Corp 219 8,267 1,231 46,470 2,960 111,740 2,783 105,058 5,572 210,342
Deluxe Corp 64 2,168 614 20,799 1,491 50,508 1,367 46,307 2,684 90,920
Eaton Corp 76 5,273 559 38,781 1,349 93,587 1,179 81,793 2,394 166,083
Genuine Parts Co 179 5,359 1,319 39,488 3,169 94,872 2,878 86,160 5,991 179,355
Goodyear Tire & Rubber Co 247 11,424 1,225 56,656 2,958 136,808 2,747 127,049 5,436 251,414
Illinois Tool Works Inc 309 21,244 1,658 113,988 3,997 274,794 3,569 245,368 8,197 563,543
ITT Industries Inc 126 4,922 931 36,367 2,161 84,414 2,024 79,063 3,952 154,374
Lear Corp 300 10,594 616 21,753 1,227 43,328 1,161 40,998 2,473 87,327
</TABLE>
21
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ------------------- ------------------- ------------------- ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Mascotech Inc 0 $ -- 264 $ 3,993 0 $ -- 357 $ 5,400 707 $ 10,693
Meritor Automotive Inc 270 4,286 1,094 17,367 1,868 29,655 1,814 28,797 3,630 57,625
Modine Manufacturing Co 309 8,652 220 6,160 408 11,424 299 8,372 442 12,376
Navistar International Corp 124 5,332 556 23,908 1,197 51,471 1,154 49,622 2,254 96,921
PACCAR Inc 93 3,894 652 27,303 1,433 60,007 1,318 55,191 2,603 109,000
Strattec Security Corp 10 315 25 788 63 1,985 44 1,386 0 --
Superior Industries International
Inc 322 7,970 229 5,668 398 9,851 296 7,326 450 11,138
The Pep Boys--Manny Moe & Jack 49 894 469 8,559 1,147 20,933 999 18,232 2,115 38,599
TRW Inc 121 5,717 915 43,234 2,215 104,659 2,025 95,681 4,133 195,283
-------- ---------- ---------- ---------- -----------
TOTAL AUTO PARTS &
EQUIPMENT
- VALUE $110,283 $ 528,563 $1,217,954 $1,115,464 $ 2,304,332
- COST $104,115 $ 477,587 $1,086,008 $ 969,466 $ 2,202,898
AUTOMOBILES
Percent of Net Assets 0.76% 1.58% 2.25% 2.85% 2.95%
Daimler-ChryslerAG 4,689 $440,471 18,698 $1,756,442 37,849 $3,555,440 36,455 $3,424,491 59,189 $ 5,560,066
Fiat SpA ADR (UK) 3,998 59,470 14,430 214,646 28,800 428,400 28,177 419,132 56,051 833,758
Ford Motor Co 1,481 87,841 10,027 594,725 22,992 1,363,713 20,758 1,231,208 41,520 2,462,654
General Motors Corp Class A 761 62,830 5,052 417,105 11,767 971,513 10,899 899,848 22,415 1,850,637
Harley-Davidson Inc 836 48,331 1,860 107,531 2,921 168,870 2,757 159,388 5,900 341,093
Hertz Corp. Class A 100 3,981 264 10,511 526 20,941 536 21,340 1,060 42,201
Honda Motor Co Ltd ADR (Japan) 533 40,441 2,285 173,374 5,277 400,392 5,342 405,323 10,544 800,025
Nissan Motor Co Ltd ADR (Japan) 3,635 27,831 14,626 111,981 34,054 260,728 33,799 258,774 67,357 515,704
Toyota Motor Corp ADR (Japan) 2,178 113,800 8,861 462,986 20,581 1,075,357 20,469 1,069,504 40,544 2,118,423
-------- ---------- ---------- ---------- -----------
TOTAL AUTOMOBILES
- VALUE $884,996 $3,849,301 $8,245,354 $7,889,008 $14,524,561
- COST $630,269 $2,665,576 $5,816,397 $5,736,762 $11,031,546
BANK & FINANCE
Percent of Net Assets 2.27% 5.25% 7.66% 9.51% 11.31%
Advanta Corp Class B 163 $ 1,477 143 $ 1,296 238 $ 2,157 194 $ 1,758 336 $ 3,045
Allied Irish Banks PLC ADR
(Ireland) 1,746 180,274 6,202 640,356 12,323 1,272,350 12,015 1,240,548 23,911 2,468,810
American Express Corp 441 47,849 2,964 321,594 7,247 786,300 6,608 716,967 15,056 1,633,575
Amsouth Bancorp 600 28,200 1,354 63,638 2,160 101,520 1,987 93,389 5,940 279,179
Associated Banc Corp 350 10,872 638 19,818 986 30,628 937 29,106 3,180 98,778
Associates First Capital Corp 782 31,769 5,256 213,525 12,417 504,441 11,564 469,786 23,711 963,258
Astoria Financial Corp 430 19,484 581 26,327 881 39,920 1,344 60,900 2,747 124,472
Avalonbay Communities Inc 0 -- 792 24,998 1,590 50,184 1,429 45,103 88 2,778
Banco Bilbao Vizcaya ADR (Spain) 4,210 62,098 15,108 222,843 30,095 443,901 29,503 435,168 58,781 867,019
Banco Central Hispanoamericano SA 5,788 69,094 20,917 249,697 41,541 495,896 40,636 485,091 80,938 966,196
ADR (Spain)
Banco Santander SA ADR (Spain) 2,005 39,466 7,324 144,191 14,690 289,209 14,363 282,771 28,646 563,967
Bancwest Corp 200 7,838 264 10,346 526 20,613 446 17,478 1,148 44,987
Bank of New York Inc 788 27,531 5,789 202,253 13,500 471,656 12,471 435,705 25,651 896,181
Bank One Corp 1,285 69,074 8,973 482,298 21,066 1,132,298 19,367 1,040,975 40,087 2,154,675
</TABLE>
22
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ----------------- ------------------- ------------------- -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
BankAmerica Corp 1,883 $122,982 13,386 $ 874,272 31,314 $2,045,196 28,827 $1,882,762 59,532 $3,888,183
BankBoston Corp 322 13,021 2,229 90,135 5,338 215,855 4,933 199,477 10,119 409,186
Bankers Trust Corp 84 7,308 729 63,423 1,769 153,903 1,612 140,243 3,275 284,924
BB&T Corp 310 11,741 2,189 82,908 5,164 195,586 4,787 181,307 9,789 370,757
Bear Stearns Co Inc 189 8,092 950 40,672 2,172 92,989 2,051 87,809 3,993 170,949
Campstead Mortgage Corp 0 -- 352 1,738 701 3,461 625 3,086 1,325 6,542
Capital One Financial Corp 0 -- 475 60,622 140 17,868 905 115,501 370 47,221
CCB Financial Corp 200 10,388 352 18,282 701 36,408 714 37,083 1,678 87,150
Centura Banks Inc 200 12,800 352 22,528 438 28,032 625 40,000 1,325 84,799
Charter One Financial Inc 742 21,379 1,598 46,042 2,545 73,322 2,338 67,364 6,919 199,353
Chase Manhattan 1,078 85,835 5,573 443,749 13,385 1,065,781 12,130 965,850 27,482 2,188,253
Citigroup Inc 2,505 147,168 17,540 1,030,474 41,178 2,419,208 37,434 2,199,247 78,338 4,602,357
City National Corp 200 6,450 528 17,028 964 31,089 982 31,670 2,031 65,499
CNB Bancshares Inc 0 -- 352 14,146 0 -- 0 -- 0 --
Colonial BancGroup Inc 0 -- 188 2,327 100 1,238 0 -- 88 1,089
Comdisco Inc 548 6,576 1,362 16,344 3,100 37,200 2,953 35,436 6,029 72,347
Comerica Inc 194 12,853 1,172 77,645 2,817 186,626 2,610 172,912 5,334 353,377
Commerce Bancshares Inc 352 14,332 679 27,659 1,070 43,607 1,054 42,959 3,265 133,060
Commercial Federal Corp 0 -- 804 17,537 100 2,181 0 -- 88 1,920
Compass Bancshares Inc 400 14,650 792 29,007 1,371 50,213 1,741 63,764 3,577 131,007
ContiFinancial Corp 0 -- 88 308 175 613 178 623 530 1,855
Countrywide Credit Industries
Inc 94 3,560 895 33,898 2,067 78,288 1,861 70,485 3,684 139,531
Credit Acceptance Corp 200 1,200 176 1,056 0 -- 178 1,068 442 2,652
Crescent Operating Inc 0 -- 70 247 0 -- 0 -- 177 625
Crescent Real Estate Co 600 12,525 1,332 27,806 2,028 42,335 2,768 57,782 5,741 119,842
Cullen/Frost Bankers Inc 0 -- 352 16,654 0 -- 0 -- 0 --
Dime Bancorp Inc 700 17,325 1,420 35,145 2,291 56,702 3,036 75,141 6,183 153,028
Donaldson Lufkin & Jenrette Inc 200 11,400 352 20,064 614 34,998 625 35,625 1,325 75,524
Duke Realty Investments 300 6,544 1,156 25,215 2,028 44,236 1,875 40,898 3,886 84,762
Edwards A G & Sons Inc 482 15,695 1,270 41,354 2,313 75,317 2,201 71,670 4,449 144,870
Equifax Inc 161 6,078 900 33,975 2,399 90,562 2,106 79,502 4,966 187,466
Federal Home Loan Mortgage Corp 703 41,389 4,344 255,753 10,817 636,851 9,733 573,029 22,576 1,329,161
Federal National Mortgage Assoc 1,121 78,470 7,954 556,779 18,681 1,307,670 17,273 1,209,109 35,481 2,483,669
Fifth Third Bancorp 349 23,056 1,768 116,799 4,242 280,237 3,834 253,283 8,710 575,403
Finova Group Inc 300 15,244 616 31,301 964 48,983 1,339 68,038 2,826 143,595
First American Corp 600 24,338 1,304 52,894 2,133 86,520 1,981 80,354 5,790 234,856
First Security Corp 1,041 19,324 1,820 33,784 2,898 53,799 2,704 50,193 9,352 173,591
First Tennessee National Corp 716 27,253 1,578 60,063 2,502 95,232 2,411 91,769 6,942 264,229
First Union Corp 1,011 53,899 7,443 396,806 17,453 930,463 16,213 864,352 33,232 1,771,680
First Virginia Banks Inc 338 16,118 590 28,136 952 45,398 1,376 65,618 2,841 135,479
Firstar Corp 1,208 101,169 2,376 198,990 3,899 326,541 3,727 312,135 8,518 713,382
Firstmerit Corp 300 7,331 804 19,648 1,853 45,283 1,696 41,446 3,533 86,337
Firstplus Financial Group 200 275 440 605 788 1,084 714 982 1,590 2,186
Fleet Financial Group Inc 602 25,848 4,312 185,147 10,271 441,011 9,500 407,905 19,398 832,901
Franklin Resources Inc 328 10,435 1,650 52,491 3,163 100,623 3,609 114,811 6,620 210,598
</TABLE>
23
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ---------------- ---------------- ---------------- ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
GATX Corp 346 $11,959 651 $ 22,500 1,231 $ 42,546 1,191 $ 41,164 2,579 $ 89,136
Golden State Bancorp 200 3,563 528 9,405 1,052 18,739 1,071 19,077 2,208 39,330
Golden West Financial 54 5,073 470 44,151 1,077 101,171 987 92,716 1,961 184,210
Greenpoint Financial Corp 500 15,344 980 30,074 1,502 46,093 1,429 43,852 4,593 140,947
GTECH Holdings Corp 200 4,525 440 9,955 877 19,842 804 18,191 1,766 39,956
Hibernia Corp Class A 900 14,569 1,772 28,684 2,905 47,025 3,928 63,585 7,949 128,673
Highwood Properties Inc 300 7,181 892 21,352 1,590 38,061 1,518 36,337 3,091 73,990
Household International Inc 549 22,303 3,761 152,791 8,863 360,059 8,192 332,799 16,921 687,415
Huntington Bancshares Inc 199 6,318 1,649 52,356 3,773 119,793 3,440 109,220 7,043 223,614
INMC Mortgage Holdings Inc REIT 200 2,125 892 9,478 1,678 17,829 1,518 16,129 3,091 32,842
John Nuveen & Co Inc Class A 0 -- 88 3,476 0 -- 0 -- 0 --
Keycorp 454 14,642 3,353 108,134 7,934 255,871 7,317 235,972 15,109 487,264
Keystone Financial Inc 300 10,838 704 25,432 1,315 47,504 1,250 45,156 2,650 95,730
Legg Mason Inc 400 11,325 704 19,932 1,227 34,739 1,250 35,391 2,561 72,507
Lehman Brothers Holdings 180 9,540 950 50,350 2,155 114,215 1,985 105,205 4,025 213,324
M & T Bank Corp 0 -- 88 41,866 88 41,866 89 42,342 265 126,073
MBNA Corp 606 14,696 5,040 122,220 12,243 296,881 10,922 264,858 25,297 613,439
Medaphis Corp 800 2,600 792 2,574 964 3,133 1,071 3,481 1,767 5,743
Mellon Bank Corp 247 16,703 2,013 136,129 4,726 319,596 4,352 294,303 8,891 601,253
Mercantile Bancorp 134 6,114 1,095 49,959 2,703 123,324 2,576 117,530 5,280 240,899
Mercantile Bankshares 454 16,543 823 29,988 1,870 68,138 1,752 63,839 3,639 132,595
Merrill Lynch & Co Inc 340 26,095 2,684 205,997 6,278 481,836 5,809 445,840 11,942 916,548
Metris Companies Inc 160 6,880 112 4,816 227 9,605 145 6,235 139 5,881
MGIC Investment Corp 95 3,236 934 31,814 2,051 69,862 1,893 64,480 3,809 129,743
Morgan (J P) & Co Inc 216 24,071 1,359 151,444 3,162 352,365 3,005 334,869 6,082 677,762
Morgan Stanley Dean Witter 654 59,187 4,466 404,172 10,591 958,486 9,808 887,623 19,972 1,807,465
National Australia Bank Ltd ADR 1,103 91,410 4,031 334,069 8,102 671,453 7,797 646,175 15,645 1,296,578
(Australia)
National City Corp 376 26,273 2,211 154,494 5,264 367,822 4,776 333,722 10,759 751,784
National Commerce Bancorp 400 8,300 1,244 25,813 2,291 47,538 2,143 44,467 4,416 91,631
Northern Trust Corp 124 11,083 870 77,756 2,016 180,180 1,861 166,326 3,750 335,155
Northfork Bancorp 800 17,600 1,596 35,112 2,554 56,188 3,393 74,646 7,022 154,483
Oakwood Homes Corp 200 3,225 616 9,933 1,139 18,366 1,071 17,270 2,208 35,604
Ocwen Financial Corp 0 -- 364 2,912 626 5,008 536 4,288 972 7,776
Old Kent Financial Corp 522 22,903 1,319 57,871 2,035 89,286 1,946 85,381 5,314 233,151
Old National Bancorp 362 16,788 213 9,878 426 19,756 325 15,072 751 34,828
Pacific Century Financial Corp 648 14,216 998 21,894 1,602 35,144 1,387 30,427 4,125 90,491
Paine Webber Group Inc 600 22,425 1,332 49,784 2,072 77,441 1,875 70,078 5,520 206,309
Peoples Bank Bridgeport 100 2,794 352 9,856 701 19,628 625 17,500 1,325 37,100
Peoples Heritage Financial Group Inc 0 -- 1,244 21,148 100 1,700 0 -- 88 1,496
PNC Bank Corp 329 17,129 2,345 122,087 5,467 284,626 5,006 260,624 10,340 538,325
Price (T Rowe) & Associates 500 15,406 1,244 38,331 1,941 59,807 2,411 74,289 5,034 155,109
Provident Financial Group 100 3,881 264 10,296 526 20,514 446 17,394 972 37,908
Regions Financial Corp 170 6,460 1,587 60,306 3,810 144,780 3,715 141,169 7,373 280,173
</TABLE>
24
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ------------------- ------------------- ------------------- ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Republic New York Corp 94 $ 4,259 832 $ 37,700 1,950 $ 88,359 1,794 $ 81,291 3,613 $ 163,713
Ryder System Inc 129 3,483 562 15,174 1,342 36,234 1,293 34,911 2,535 68,444
Sabre Group Holding Inc 0 -- 176 6,908 351 13,777 268 10,519 442 17,349
Schwab (Charles) Corp 247 18,417 2,745 204,674 6,480 483,165 5,727 427,019 13,368 996,751
SLM Holding Corp 135 5,788 1,025 43,947 2,670 114,476 2,320 99,470 5,530 237,098
Sovereign Bancorp Inc 800 9,800 1,948 23,863 3,519 43,108 3,393 41,564 6,978 85,480
Spieker Properties Inc 300 10,725 704 25,168 1,315 47,011 1,339 47,869 2,738 97,883
State Street Boston Corp 205 15,721 1,047 80,292 2,567 196,857 2,330 178,681 5,301 406,519
Summit Bancorp 184 7,107 1,330 51,371 3,147 121,553 2,946 113,789 5,952 229,895
SunTrust Banks Inc 748 50,817 2,868 194,845 5,719 388,535 5,447 370,055 11,362 771,905
Synovus Financial Corp 197 4,691 1,800 42,863 4,456 106,109 3,762 89,583 9,053 215,574
TCF Financial Corp 500 12,031 1,156 27,816 2,116 50,916 2,411 58,015 4,858 116,895
The Fund American Companies 0 -- 0 -- 0 -- 0 -- 100 13,150
Trustmark Corp 300 6,356 716 15,170 1,765 37,396 1,696 35,934 3,445 72,990
U.S. Bancorp 681 22,005 4,698 151,804 11,649 376,408 10,470 338,311 24,228 782,866
Union Planters Corp 173 7,817 1,032 46,634 2,298 103,841 2,171 98,109 7,397 334,251
UnionBanCal Corp 300 9,431 264 8,300 789 24,804 804 25,276 1,590 49,986
United Asset Management Corp 400 9,075 980 22,234 1,765 40,043 1,696 38,478 3,445 78,157
Valley National Bancorp 300 7,688 704 18,040 1,402 35,926 1,339 34,312 2,738 70,160
Wachovia Corp 282 23,988 1,604 136,440 3,675 312,605 3,518 299,249 7,093 603,347
Waddell & Reed Financial Class A 9 170 68 1,284 138 2,605 122 2,303 258 4,870
Waddell & Reed Financial Class B 39 724 273 5,068 608 11,286 572 10,618 1,112 20,642
Washington Federal Inc 343 7,722 926 20,837 1,573 35,390 1,469 33,041 3,048 68,581
Washington Mutual Inc 604 24,160 4,553 182,120 10,758 430,320 9,862 394,479 20,344 813,759
Wells Fargo & Co 2,337 85,884 12,988 477,308 29,375 1,079,531 26,958 990,706 56,111 2,062,078
Wesco Financial Corp 0 -- 0 -- 0 -- 0 -- 88 30,487
Westamerica Bancorp 200 6,700 616 20,636 1,052 35,242 1,071 35,879 2,208 73,967
Westpac Banking Corp ADR 1,636 54,602 5,958 198,848 11,939 398,464 11,613 387,583 23,232 775,367
(Australia)
Wilmington Trust Corp 192 10,884 449 25,453 919 52,096 896 50,792 1,833 103,907
Zions Bancorp 400 25,600 880 56,320 1,502 96,128 1,339 85,696 3,621 231,743
---------- ----------- ----------- ----------- -----------
TOTAL BANK & FINANCE
- VALUE $2,650,045 $12,776,342 $28,013,583 $26,319,587 $55,684,169
- COST $1,952,112 $ 8,564,180 $17,839,628 $16,711,537 $41,226,588
BASIC INDUSTRIES
Percent of Net Assets 0.26% 0.57% 0.86% 1.06% 1.26%
Alcoa Inc 488 $ 19,764 2,890 $ 117,045 6,702 $ 271,431 6,516 $ 263,897 13,384 $ 542,051
ASARCO Inc 25 353 307 4,336 800 11,300 636 8,984 1,410 19,916
Avery-Dennison Corp 70 3,758 816 43,809 1,832 98,356 1,674 89,873 4,008 215,179
Baker Hughes Inc 299 5,382 2,430 43,740 5,788 104,184 5,346 96,228 15,401 277,217
Bemis Co 42 1,431 428 14,579 960 32,700 882 30,043 1,789 60,937
Boise Cascade Corp 59 1,833 473 14,693 1,022 31,746 986 30,628 1,883 58,490
Boise Cascade Office Products 0 -- 88 1,056 701 8,412 179 2,148 353 4,236
Bowater Inc 295 12,427 713 30,035 1,360 57,290 1,346 56,700 2,804 118,118
</TABLE>
25
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ------------------- ------------------- ------------------- -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Broken Hill Propriety Co Ltd
ADR (Australia) 720 $ 10,845 2,578 $ 38,831 5,201 $ 78,340 5,012 $ 75,493 10,187 $ 153,441
Champion International Corp 122 4,514 761 28,157 1,702 62,974 1,628 60,236 3,214 118,917
Chesapeake Corp 256 8,064 176 5,544 316 9,954 237 7,466 574 18,081
Consolidated Papers Inc 372 8,277 857 19,068 1,538 34,220 1,411 31,395 2,862 63,679
Crown Vantage Inc 21 37 42 74 91 159 72 126 117 205
Cyprus Amax Minerals 70 788 755 8,494 1,676 18,855 1,580 17,775 3,129 35,201
Deltic Timber Corp 140 3,343 145 3,462 269 6,422 178 4,250 295 7,043
Dover Corp 185 6,290 1,553 52,802 3,672 124,848 3,148 107,032 7,544 256,495
Fort James Corp 151 4,511 1,451 43,349 3,594 107,371 3,149 94,076 7,203 215,189
Georgia-Pacific Corp 127 9,303 748 54,791 1,654 121,156 1,531 112,146 3,092 226,488
Glatfelter (P H) Co 486 5,194 246 2,629 674 7,203 437 4,670 680 7,268
Harnischfeger Industries Inc 50 384 385 2,960 833 6,404 804 6,181 1,480 11,378
Homestake Mining Co 152 1,397 1,652 15,178 3,856 35,427 3,526 32,395 7,031 64,596
Ikon Office Solutions Inc 124 1,752 923 13,037 2,571 36,315 2,255 31,852 4,411 62,304
Inco Ltd 166 2,096 1,159 14,632 2,905 36,676 2,785 35,161 5,363 67,707
Longview Fibre Co 554 6,267 475 5,373 780 8,824 513 5,803 1,175 13,292
Louisiana-Pacific Corp 63 1,158 892 16,391 1,931 35,482 1,864 34,251 3,631 66,719
LTB Corp 900 4,950 1,408 7,744 2,630 14,465 2,411 13,261 5,653 31,092
Mail-Well Inc 0 -- 100 1,413 100 1,413 0 -- 88 1,243
Mark IV Industries Inc 247 3,720 556 8,375 1,026 15,454 948 14,279 2,098 31,601
Mead Corp 102 3,105 835 25,415 1,876 57,101 1,730 52,657 3,422 104,156
Minnesota Mining &
Manufacturing Co 505 37,402 2,655 196,636 6,337 469,334 5,799 429,487 13,036 965,478
Mitsubishi Corp ADR (Japan) 3,294 35,536 18,425 198,769 42,918 462,999 42,450 457,950 84,290 909,320
NACCO Industries Inc Class A 18 1,584 48 4,224 147 12,936 149 13,112 279 24,552
Newmont Mining Corp 187 3,217 1,421 24,512 3,013 51,966 2,833 48,869 6,306 108,778
Potlatch Corp 2 69 230 7,978 530 18,384 522 18,107 895 31,045
Rayonier Inc 156 6,386 396 16,211 756 30,949 737 30,171 1,518 62,142
Sealed Air Corp 177 8,983 605 30,704 1,432 72,674 1,249 63,387 2,918 148,088
Smith International Inc 214 5,203 616 14,977 1,137 27,643 1,095 26,622 2,296 55,821
St Joe Paper Corp 300 6,469 352 7,590 701 15,115 714 15,396 1,502 32,387
U.S. Industries Inc 527 8,564 1,446 23,498 2,539 41,259 2,436 39,585 4,979 80,908
Union Camp Corp 65 4,347 519 34,708 1,249 83,527 1,146 76,639 2,276 152,207
Unisource Worldwide Inc 94 658 585 4,095 1,029 7,203 975 6,825 2,362 16,534
Varco International Inc 584 4,526 440 3,410 919 7,122 846 6,557 1,678 13,005
Varian Associates Inc 177 5,664 431 13,792 820 26,240 795 25,440 1,559 49,888
Watts Industries Inc Class A 308 4,293 0 -- 407 5,673 298 4,153 0 --
Wausau-Mosinee Paper Corp 392 6,223 278 4,413 501 7,953 363 5,763 328 5,207
Westvaco Corp 56 1,253 852 19,064 1,968 44,034 1,747 39,089 3,384 75,716
Weyerhauser Co 269 14,997 1,609 89,702 3,779 210,679 3,366 187,654 6,657 371,127
Whitman Corp 464 8,816 1,224 23,256 2,687 51,053 2,584 49,096 5,357 101,782
Willamette Industries Inc 109 3,972 870 31,701 2,022 73,677 1,843 67,154 3,696 134,672
-------- ---------- ---------- ---------- ----------
TOTAL BASIC INDUSTRIES
- VALUE $299,105 $1,386,252 $3,154,902 $2,930,062 $6,190,896
- COST $347,849 $1,604,193 $3,582,192 $3,381,989 $7,374,966
</TABLE>
26
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ------------------- ------------------- ------------------- ---------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
BEVERAGES
Percent of Net Assets 0.76% 1.65% 2.47% 3.09% 3.69%
Anheuser-Busch Inc 522 $ 40,031 3,100 $ 237,731 7,688 $ 589,573 6,941 $ 532,287 15,972 $ 1,224,852
Cadbury Schweppes PLC ADR
(UK) 1,417 88,384 5,062 315,742 10,011 624,436 9,878 616,139 19,634 1,224,670
Coca-Cola Co 2,417 154,536 16,234 1,037,960 39,432 2,521,184 35,482 2,268,629 81,805 5,230,406
Coca-Cola Enterprises Co 1,036 32,116 2,655 82,305 6,219 192,789 5,699 176,668 13,050 404,549
Coors (Adolph) Co Class B 59 3,514 318 18,941 633 37,703 651 38,775 1,199 71,414
Diageo PLC ADR (UK) 3,787 171,361 13,795 624,223 27,602 1,248,990 26,926 1,218,401 53,728 2,431,191
Hanson PLC ADR (UK) 2,399 97,458 8,556 347,588 17,127 695,784 16,792 682,169 33,366 1,355,493
Kirin Brewery Co ADR (Japan) 1,597 184,253 6,282 724,785 14,466 1,669,015 14,380 1,659,092 28,452 3,282,649
Louis Vuitton Moet
Hennessey ADR (France) 947 40,248 3,521 149,643 7,032 298,860 7,033 298,902 13,627 579,147
Pepsico Inc 1,487 55,948 9,712 365,414 23,509 884,526 21,085 793,322 48,714 1,832,863
Seagrams Co Ltd 344 15,953 2,690 124,749 6,201 287,571 5,770 267,583 11,899 551,815
-------- ---------- ---------- ---------- -----------
TOTAL BEVERAGES
- VALUE $883,802 $4,029,081 $9,050,431 $8,551,967 $18,189,049
- COST $686,279 $3,016,007 $6,722,275 $6,390,310 $14,514,139
BIOTECHNOLOGY
Percent of Net Assets 0.06% 0.09% 0.08% 0.09% 0.13%
Agouron Pharmaceuticals Inc 0 $ -- 264 $ 15,065 438 $ 24,993 446 $ 25,450 972 $ 55,464
Beckman Coulter Inc 194 9,373 396 19,132 745 35,993 719 34,737 1,484 71,695
Biogen Inc 418 40,180 757 72,767 1,211 116,407 1,180 113,427 3,436 330,285
Chiron Corp 396 8,341 1,237 26,054 2,225 46,864 2,143 45,137 4,374 92,126
Genzyme Corp--General
Division 326 14,670 898 40,410 831 37,395 664 29,880 1,501 67,544
Genzyme Corp--Tissue Repair 44 116 10 26 62 163 46 121 48 126
Genzyme Corp Molecular
Oncology 35 131 96 366 79 301 71 271 152 580
Medimmune Inc 0 -- 528 29,040 0 -- 0 -- 0 --
Quest Diagnostics Inc 46 983 211 4,510 451 9,640 347 7,417 729 15,582
-------- ---------- ---------- ---------- -----------
TOTAL BIOTECHNOLOGY
- VALUE $ 73,794 $ 207,370 $ 271,756 $ 256,440 $ 633,402
- COST $ 36,433 $ 135,571 $ 187,219 $ 165,498 $ 398,628
BROADCASTING
Percent of Net Assets 0.23% 0.54% 0.79% 0.97% 1.10%
American Tower Corp 0 $ -- 1,156 $ 30,995 2,028 $ 54,376 1,875 $ 50,273 88 $ 2,360
British Sky Broadcasting
ADR (UK) 747 41,318 2,685 148,514 5,277 291,884 5,158 285,301 10,213 564,906
Cablevision Systems Corp 0 -- 880 57,200 1,590 103,350 1,786 116,090 88 5,720
Chancellor Media Corp
Class A 600 26,250 1,420 62,125 2,204 96,425 2,054 89,863 6,006 262,762
Clear Channel Communications
Inc 228 13,680 1,934 116,040 4,476 268,560 4,168 250,079 8,528 511,679
Fox Entertainment Group Inc 0 -- 100 2,600 100 2,600 0 -- 177 4,602
Hearst-Argyle Television 300 7,913 704 18,568 1,227 32,362 1,250 32,969 2,473 65,224
Heftel Broadcasting Corp 100 4,100 352 14,520 614 25,328 625 25,781 1,237 51,026
Infinity Broadasting Corp 0 -- 100 2,375 100 2,375 0 -- 0 --
Jacor Communications Inc 100 6,975 176 12,276 263 18,344 268 18,693 618 43,106
</TABLE>
27
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ------------------- -------------------- -------------------- ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Kingworld Productions 94 $ 2,485 555 $ 14,673 1,373 $ 36,299 1,258 $ 33,258 2,404 $ 63,555
MediaOne Group Inc 680 37,060 4,685 255,333 10,984 598,628 10,182 554,918 20,835 1,135,507
TCA Cable TV Inc 532 23,475 616 27,181 650 28,681 493 21,754 88 3,883
TCI Satellite Entertainment
Class A 107 87 477 388 1,008 819 788 640 1,649 1,340
Tele-Communications Inc
Class A 536 33,668 3,531 221,791 8,554 537,298 7,719 484,849 17,702 1,111,906
Tribune Co 121 8,024 922 61,140 2,254 149,468 2,080 137,929 4,124 273,472
Univision Communications
Inc 100 4,075 264 10,758 438 17,849 446 18,175 883 35,982
USA Networks Inc 622 24,725 729 28,978 1,139 45,275 1,111 44,162 5,045 200,538
Viacom Inc Class B 387 34,201 2,705 239,054 6,427 567,986 5,944 525,300 12,300 1,087,012
-------- ---------- ---------- ---------- ----------
TOTAL BROADCASTING
- VALUE $268,036 $1,324,509 $2,877,907 $2,690,034 $5,424,580
- COST $153,343 $ 761,042 $1,584,785 $1,463,061 $2,986,028
BUILDING MATERIALS &
SERVICES
Percent of Net Assets 0.17% 0.23% 0.31% 0.39% 0.52%
AMBAC Inc 400 $ 22,400 616 $ 34,496 1,052 $ 58,912 1,071 $ 59,976 3,180 $ 178,079
American Standard Co Inc 200 6,713 716 24,031 1,327 44,537 1,161 38,966 2,473 82,999
Cooper Industries Inc 123 5,381 934 40,863 2,093 91,569 1,930 84,437 4,047 177,055
Corning Inc 185 9,898 1,438 76,933 3,658 195,703 3,313 177,245 7,756 414,945
Cytec Industries Inc 200 5,363 440 11,798 877 23,515 804 21,557 1,766 47,351
Dal Tile International Inc 0 -- 0 -- 0 -- 0 -- 177 1,626
Danaher Corp 500 24,125 677 32,665 1,263 60,940 1,265 61,036 4,381 211,382
Diebold Inc 366 10,683 1,011 29,509 1,335 38,965 1,778 51,895 3,582 104,549
Fastenal Co 200 7,600 352 13,376 701 26,638 714 27,132 1,413 53,693
Georgia-Pacific (Timber
Group) 437 8,904 1,326 27,017 2,457 50,061 1,639 33,395 4,678 95,313
Kennametal Inc 300 6,244 264 5,495 360 7,493 268 5,578 530 11,031
Lafarge Corp 300 9,563 440 14,025 789 25,149 714 22,759 1,590 50,681
Lawson Products Inc 0 -- 0 -- 173 3,644 0 -- 0 --
Martin Marietta Inc 100 5,131 88 4,516 175 8,980 179 9,185 442 22,680
Owens Corning Fiberglass
Corp 18 573 391 12,439 912 29,013 751 23,891 2,005 63,783
Owens Illinois Inc 136 3,256 1,148 27,480 2,741 65,613 2,531 60,586 5,180 123,995
PPG Industries Inc 185 9,632 1,339 69,712 3,138 163,372 2,971 154,677 6,061 315,550
Snap-On Inc 38 1,074 447 12,628 1,041 29,408 982 27,742 1,973 55,736
Southdown Inc 275 12,977 440 20,763 660 31,144 962 45,394 2,031 95,837
Stanley Works 92 2,237 631 15,341 1,444 35,107 1,292 31,412 3,065 74,517
USG Corp 200 10,025 440 22,055 877 43,960 804 40,301 1,766 88,520
Valspar Corp 200 6,500 528 17,160 964 31,330 982 31,915 2,031 66,007
Vulcan Materials Co 200 26,950 352 47,432 526 70,879 536 72,226 1,590 214,252
-------- ---------- ---------- ---------- ----------
TOTAL BUILDING
MATERIALS & SERVICES
- VALUE $195,229 $ 559,734 $1,135,932 $1,081,305 $2,549,581
- COST $135,815 $ 521,785 $1,067,342 $1,027,932 $2,514,270
</TABLE>
28
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ------------------ -------------------- -------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
BUSINESS SERVICES
Percent of Net Assets 0.16% 0.28% 0.38% 0.47% 0.56%
APAC Teleservices Inc 100 $ 306 176 $ 539 351 $ 1,075 357 $ 1,093 530 $ 1,623
Apollo Group Inc 200 6,013 572 17,196 964 28,980 1,027 30,874 2,031 61,056
Cendant Corp 952 15,768 6,572 108,849 15,512 256,918 14,382 238,201 29,398 486,903
Concord EFS Inc 350 11,178 1,244 39,730 2,248 71,796 2,098 67,005 4,416 141,035
Convergys Corp 0 -- 100 1,731 100 1,731 0 -- 0 --
Delta & Pine Land Co 0 -- 440 14,245 0 -- 0 -- 88 2,849
Dun & Bradstreet Corp 75 2,569 1,060 36,305 2,656 90,968 2,363 80,933 5,641 193,203
Ecolab Inc 84 3,350 746 29,747 2,088 83,259 1,883 75,085 4,538 180,952
Fulton Financial Corp 0 -- 716 15,842 100 2,213 0 -- 88 1,947
IT Group Inc 0 -- 0 -- 120 1,575 0 -- 0 --
Kelly Services Inc Class A 106 2,703 194 4,947 341 8,696 374 9,537 782 19,941
Manpower Inc 300 7,181 1,156 27,672 2,116 50,652 1,964 47,013 4,063 97,257
Modis Professional
Services 500 6,844 1,420 19,436 2,554 34,958 2,500 34,219 4,946 67,697
Neilsen Media Research 60 1,178 391 7,673 897 17,610 793 15,569 1,872 36,738
Nielson (A C) Corp 73 1,898 399 10,374 805 20,930 631 16,406 1,440 37,440
Ogden Corp 301 7,356 638 15,591 1,213 29,643 1,166 28,494 2,424 59,236
Olsten Corp 291 1,801 462 2,859 979 6,058 882 5,457 1,957 12,109
Paychex Inc 632 26,781 1,015 43,011 2,626 111,277 2,280 96,615 5,498 232,977
Paymentech Inc 0 -- 88 1,683 0 -- 179 3,423 353 6,751
Quintiles Transnational
Corp 300 12,938 704 30,360 1,315 56,709 1,339 57,744 2,738 118,075
Reuters Group PLC ADR (UK) 684 56,772 2,513 208,579 5,104 423,632 4,956 411,347 9,781 811,822
Robert Half International
Inc 300 10,800 1,024 36,864 1,853 66,708 1,741 62,676 3,621 130,355
Rollins Inc 388 6,232 185 2,972 565 9,075 357 5,734 596 9,573
Security Dynamics
Technology Inc 200 3,700 528 9,768 964 17,834 893 16,521 1,855 34,318
Teletech Holdings Inc 0 -- 88 616 0 -- 0 -- 265 1,855
-------- -------- ---------- ---------- ----------
TOTAL BUSINESS
SERVICES
- VALUE $185,368 $686,589 $1,392,297 $1,303,946 $2,745,712
- COST $177,775 $675,055 $1,313,634 $1,364,068 $2,915,296
CHEMICALS
Percent of Net Assets 0.48% 0.93% 1.37% 1.68% 1.99%
Air Products & Chemicals
Inc 180 $ 5,783 1,751 $ 56,251 4,150 $ 133,319 3,782 $ 121,497 7,831 $ 251,570
Airgas Inc 400 3,600 704 6,336 1,402 12,618 1,250 11,250 2,826 25,434
Albemarle Corp 313 7,395 229 5,410 536 12,663 386 9,119 871 20,577
Arch Chemicals Inc 135 2,565 334 6,346 604 11,476 606 11,514 1,219 23,161
Autoliv Inc 544 20,672 1,243 47,234 2,001 76,038 1,815 68,970 5,397 205,085
Cabot Corp 310 7,808 927 23,349 1,916 48,259 1,814 45,690 3,701 93,218
ChemFirst Inc 35 665 74 1,406 275 5,225 200 3,800 307 5,833
Clorox Co 233 27,567 805 95,242 1,942 229,763 1,736 205,390 3,866 457,395
Crompton & Knowles Corp 350 6,475 1,103 20,406 1,928 35,668 1,848 34,188 3,736 69,115
Dow Chemical Co 301 29,611 1,744 171,566 4,081 401,468 3,703 364,282 7,682 755,716
Du Pont (E I) De Nemours 1,400 71,838 7,508 385,254 17,871 917,006 16,153 828,850 36,475 1,871,622
Eastman Chemical Co 114 5,379 611 28,832 1,485 70,073 1,365 64,411 2,670 125,990
</TABLE>
29
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ------------------- ------------------- ------------------- -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Ethyl Corp 1,031 $ 5,026 889 $ 4,334 1,778 $ 8,668 1,168 $ 5,694 2,235 $ 10,896
Ferro Corp 457 9,768 330 7,054 573 12,248 443 9,469 1,079 23,064
FMC Corp 2 102 223 11,415 618 31,634 576 29,484 1,133 57,994
Fuller (H B) Co 0 -- 0 -- 197 8,348 0 -- 0 --
Geon Co 0 -- 0 -- 0 -- 0 -- 265 6,045
Georgia Gulf Corp 237 3,585 317 4,795 653 9,877 415 6,277 565 8,546
Goodrich (B F) Co 82 2,798 591 20,168 1,393 47,536 1,201 40,984 2,433 83,025
Grace (W R) Co 42 564 601 8,076 1,316 17,684 1,126 15,131 2,478 33,298
Great Lakes Chemical Corp 67 2,609 418 16,276 1,080 42,053 1,040 40,495 1,977 76,978
Hanna (M A) Co 280 3,080 572 6,292 1,111 12,221 1,161 12,771 2,351 25,861
Hercules Inc 82 2,270 738 20,433 1,691 46,820 1,551 42,943 3,133 86,744
IMC Global Inc 536 10,687 1,443 28,770 2,594 51,718 2,494 49,724 5,132 102,318
Imperial Chemical
Industries PLC ADR (UK) 1,149 40,359 4,141 145,453 8,233 289,184 8,073 283,563 16,147 567,162
International Flavor &
Fragrances 156 6,425 703 28,955 1,764 72,655 1,498 61,699 3,504 144,320
Johns Manville Corp 100 1,756 440 7,728 789 13,857 804 14,120 1,678 29,470
Lawter International Inc 0 -- 0 -- 593 4,225 0 -- 0 --
Lubrizol Corp 329 6,272 857 16,337 1,517 28,918 1,466 27,946 3,003 57,244
Lyondell Petrochemical 76 1,017 698 9,336 1,167 15,609 975 13,041 2,160 28,890
Millennium Chemicals Inc 410 7,406 1,099 19,851 2,039 36,829 1,916 34,608 3,927 70,930
Mississippi Chemical Corp 11 113 24 246 92 943 66 676 103 1,056
Monsanto Co 720 32,805 4,041 184,118 9,729 443,278 8,714 397,031 19,770 900,770
Montedison Spa ADR (Italy) 4,884 48,230 17,507 172,882 34,799 343,640 34,122 336,954 67,810 669,623
Morton International Inc 128 4,624 1,017 36,739 2,426 87,639 2,219 80,161 4,244 153,314
Nalco Chemical Co 64 1,800 509 14,316 1,168 32,850 1,147 32,259 2,169 61,002
Octel Corp 19 255 118 1,586 263 3,534 233 3,131 422 5,671
OEA Inc 0 -- 0 -- 270 3,004 199 2,214 0 --
Olin Corp 270 3,426 669 8,488 1,208 15,327 1,212 15,377 2,438 30,932
Praxair Inc 198 6,918 1,171 40,912 2,840 99,223 2,672 93,353 5,470 191,107
Premark International Inc 461 14,723 533 17,023 1,431 45,703 1,425 45,511 2,959 94,502
Rhone Poulenc Rorer Class A 2,214 101,843 8,155 375,130 16,306 750,076 15,942 733,331 31,745 1,460,269
Rohm & Haas Co 143 4,469 1,375 42,969 3,165 98,906 2,974 92,937 6,046 188,937
RPM Inc 372 5,138 1,383 19,103 2,552 35,250 2,417 33,385 5,021 69,352
Rubbermaid Inc 142 4,695 1,119 36,997 2,656 87,814 2,500 82,656 5,086 168,155
Schulman (A) Inc 403 6,650 369 6,089 601 9,917 550 9,075 1,047 17,276
Sigma-Aldrich Corp 118 3,112 758 19,992 1,814 47,844 1,709 45,075 3,279 86,483
Solutia Inc 643 11,453 1,372 24,439 2,201 39,205 2,875 51,211 6,040 107,587
Terra Industries Inc 500 2,469 352 1,738 614 3,032 446 2,202 972 4,799
Union Carbide Corp 125 5,500 1,016 44,704 2,409 105,996 2,259 99,396 4,594 202,135
USEC Inc 500 7,094 1,508 21,395 2,642 37,483 2,589 36,731 5,299 75,179
Valhi Inc 0 -- 100 1,150 0 -- 0 -- 265 3,048
Wellman Inc 363 3,380 246 2,291 434 4,042 326 3,036 746 6,947
-------- ---------- ---------- ---------- ----------
TOTAL CHEMICALS
- VALUE $561,779 $2,275,212 $4,998,366 $4,652,612 $9,815,645
- COST $559,589 $2,154,948 $4,648,036 $4,317,146 $9,760,910
</TABLE>
30
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ----------------- ------------------- ------------------- -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
COMMERCIAL SERVICES
Percent of Net Assets 0.03% 0.03% 0.04% 0.05% 0.06%
ServiceMaster Co 1,000 $ 18,688 2,688 $ 50,232 5,045 $ 94,278 4,728 $ 88,355 9,790 $ 182,950
Stewart Enterprises Inc
Class A 400 6,000 892 13,380 1,415 21,225 1,250 18,750 4,593 68,894
Valassis Communications Inc 100 4,800 264 12,672 526 25,248 536 25,728 1,148 55,103
-------- -------- ---------- ---------- ----------
TOTAL COMMERCIAL
SERVICES
- VALUE $ 29,488 $ 76,284 $ 140,751 $ 132,833 $ 306,947
- COST $ 32,731 $ 87,918 $ 163,477 $ 154,748 $ 355,063
COMPUTER SOFTWARE
Percent of Net Assets 1.50% 2.83% 4.07% 4.99% 6.18%
3Com Corp 390 $ 12,261 2,775 $ 87,239 6,517 $ 204,878 5,988 $ 188,247 12,261 $ 385,454
Adobe Systems Inc 112 4,508 538 21,655 1,203 48,421 1,142 45,966 2,274 91,528
Altera Corp 420 20,423 1,262 61,365 1,885 91,658 2,229 108,385 4,575 222,458
America Online Inc 4,800 426,899 10,520 935,622 17,426 1,549,825 16,676 1,483,121 37,150 3,304,027
American Management Systems
Inc 0 -- 0 -- 0 -- 0 -- 88 2,937
Anixter International Inc 500 6,281 440 5,528 438 5,502 625 7,852 1,060 13,316
At Home Corp Series A 100 10,625 264 28,017 526 55,822 536 56,883 1,148 121,831
Autodesk Inc 76 3,050 296 11,877 761 30,535 659 26,442 1,667 66,887
Automatic Data Processing 558 22,181 4,016 159,636 9,618 382,315 8,703 345,943 20,106 799,213
BEA Systems Inc 0 -- 88 1,507 263 4,504 179 3,065 353 6,045
BMC Software Inc 1,049 42,878 1,365 55,794 3,299 134,847 2,939 120,132 6,890 281,628
Cadence Design Systems Inc 1,164 28,009 2,409 57,967 3,825 92,039 3,652 87,876 10,184 245,052
Cambridge Technology
Partners 0 -- 352 8,844 614 15,427 625 15,703 1,325 33,291
Ceridian Corp 96 6,876 502 35,956 1,216 87,096 1,084 77,642 2,478 177,486
Choicepoint Inc 141 7,332 123 6,396 319 16,588 238 12,376 427 22,204
CIBER Inc 200 5,025 440 11,055 789 19,824 714 17,939 1,590 39,949
Citrix Systems Inc 200 15,425 396 30,542 745 57,458 937 72,266 2,031 156,640
Computer Associates
International Inc 524 22,008 3,517 147,714 8,716 366,072 7,778 326,675 17,940 753,479
Computer Sciences Corp 242 16,123 1,027 68,424 2,492 166,030 2,311 153,969 5,212 347,248
Compuware Corp 900 50,344 1,690 94,534 2,865 160,261 2,758 154,275 6,276 351,063
CSK Corp ADR (Japan) 1,916 54,606 7,720 220,020 17,920 510,720 17,611 501,913 35,252 1,004,681
DST Systems Inc 200 10,850 352 19,096 789 42,803 714 38,735 1,501 81,428
Electronic Arts Inc 400 15,950 616 24,563 1,402 55,905 1,429 56,981 2,915 116,235
Electronic Data Systems
Corp 568 26,412 3,725 173,213 8,826 410,409 8,176 380,183 16,875 784,687
First Data Corp 453 17,327 3,465 132,536 8,093 309,557 7,409 283,393 15,274 584,230
Fiserv Inc 425 19,975 876 41,172 1,588 74,636 1,422 66,834 3,923 184,380
Gartner Group Inc Class A 200 4,488 616 13,822 1,140 25,579 1,161 26,050 2,385 53,512
I2 Technologies Inc 0 -- 176 4,389 263 6,559 268 6,683 618 15,411
IMS Health Inc 200 7,100 2,114 75,047 5,155 183,003 4,670 165,784 10,665 378,607
Information Resources Inc 0 -- 0 -- 353 2,956 0 -- 0 --
Informix Corp 1,390 12,163 1,161 10,159 2,733 23,914 1,909 16,704 4,575 40,031
Intuit Inc 300 29,681 528 52,239 789 78,062 804 79,546 2,561 253,378
J.D. Edwards & Co 200 3,163 352 5,566 614 9,709 625 9,883 1,413 22,343
Keane Inc 300 9,281 792 24,503 1,327 41,054 1,696 52,470 3,533 109,301
Legato Systems Inc 0 -- 440 21,670 789 38,858 804 39,597 88 4,334
</TABLE>
31
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------- ------------------- -------------------- -------------------- -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
LHS Group Inc 100 $ 4,300 176 $ 7,568 351 $ 15,093 357 $ 15,351 707 $ 30,401
Mentor Graphics Corp 600 8,400 616 8,624 747 10,458 893 12,502 1,413 19,782
Microsoft Corp 2,413 362,251 16,472 2,472,858 39,935 5,995,242 35,918 5,392,189 82,716 12,417,739
MobileMedia Corp 300 -- 200 -- 400 -- 300 -- 700 1
Momentum Business
Applications Inc 17 147 31 267 72 621 66 569 148 1,277
National Data Corp 200 9,663 440 21,258 877 42,370 893 43,143 1,766 85,319
NEC Corp ADR (Japan) 1,183 59,002 4,713 235,061 11,010 549,124 10,914 544,335 21,549 1,074,755
Netscape Communications
Corp 401 31,052 884 68,455 1,592 123,281 1,625 125,836 3,308 256,162
Network Associates Inc 725 34,075 1,574 73,978 2,467 115,949 2,332 109,604 6,779 318,612
Novell Inc 425 8,234 2,746 53,204 6,380 123,613 5,922 114,739 11,708 226,842
Objective Systems
Integrator Corp 0 -- 88 264 0 -- 0 -- 177 531
Oracle Corp 961 53,696 6,398 357,488 15,632 873,438 13,966 780,349 32,267 1,802,918
Parametric Technology Corp 120 1,845 1,786 27,460 4,523 69,541 3,969 61,023 9,353 143,801
Peoplesoft Inc 775 14,628 1,595 30,106 3,830 72,291 3,345 63,137 7,770 146,658
Platinum Technology Inc 300 3,975 1,068 14,151 1,853 24,552 1,786 23,665 3,621 47,978
Renaissance Worldwide Inc 200 1,250 440 2,750 789 4,931 803 5,019 1,502 9,388
Reynolds & Reynolds Co
Class A 246 4,643 910 17,176 1,688 31,861 1,475 27,841 3,268 61,683
Shiva Corp 300 1,791 264 1,576 526 3,140 357 2,131 530 3,163
Siebel Systems Inc 300 13,200 706 31,064 1,234 54,296 1,166 51,304 2,576 113,343
Sterling Commerce Inc 377 9,802 1,189 30,914 2,076 53,976 1,961 50,986 3,952 102,751
Sterling Software Inc 300 7,650 980 24,990 1,765 45,008 1,607 40,979 3,356 85,577
Storage Technology Corp 618 21,514 1,218 42,402 1,913 66,596 1,816 63,220 5,609 195,262
Structural Dynamics
Research 303 5,909 0 -- 380 7,410 285 5,558 0 --
Sun Microsystems Inc 472 45,932 2,985 290,478 6,899 671,359 6,347 617,641 13,317 1,295,910
Sungard Data Systems Inc 500 19,813 1,156 45,807 1,765 69,938 2,321 91,970 4,769 188,971
Symantec Corp 278 5,021 892 16,112 1,622 29,297 1,394 25,179 3,003 54,241
Synopsys Inc 400 18,500 792 36,630 1,490 68,913 1,518 70,208 3,003 138,888
The Learning Company Inc 160 4,650 669 19,443 240 6,975 143 4,156 442 12,846
Total System Services Inc 450 10,238 484 11,011 964 21,931 893 20,316 1,943 44,203
Veritas Software Corp 300 21,300 528 37,488 1,052 74,692 1,027 72,917 2,120 150,519
Yahoo! Inc 400 61,400 1,684 258,494 2,554 392,039 2,322 356,426 2,296 352,435
---------- ---------- ----------- ----------- -----------
TOTAL COMPUTER
SOFTWARE
- VALUE $1,755,125 $6,884,744 $14,920,761 $13,821,806 $30,436,250
- COST $ 938,004 $3,654,463 $ 7,882,268 $ 7,368,224 $17,058,668
COMPUTER SYSTEMS
Percent of Net Assets 0.62% 1.88% 2.97% 3.57% 4.46%
Adaptec Inc 600 $ 11,963 1,684 $ 33,575 3,080 $ 61,408 2,946 $ 58,736 6,094 $ 121,498
Apple Computer Inc 125 4,352 1,035 36,031 2,452 85,360 2,308 80,347 4,489 156,272
Aztec Technology Partners
Inc 0 -- 161 746 336 1,554 288 1,330 644 2,980
Cabletron Systems Inc 177 1,438 1,214 9,864 2,989 24,286 2,632 21,385 5,051 41,039
Cisco Systems Inc 1,491 145,837 10,426 1,019,792 25,324 2,477,004 22,615 2,212,029 52,366 5,122,049
Cognex Corp 0 -- 264 6,600 614 15,350 536 13,400 1,148 28,700
Compaq Computer Corp 1,877 66,164 12,877 453,913 30,147 1,062,682 27,909 983,791 57,356 2,021,798
Comverse Technology Inc 300 21,525 440 31,570 789 56,611 1,071 76,844 2,296 164,737
</TABLE>
32
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ------------------- -------------------- ------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Data General Corp 4 $ 55 424 $ 5,857 881 $ 12,169 772 $ 10,663 1,577 $ 21,782
Dell Computer Corp 1,266 101,437 8,312 665,998 20,358 1,631,185 18,339 1,469,411 42,331 3,391,770
EMC Corp 423 43,305 3,280 335,790 8,048 823,914 7,269 744,163 16,751 1,714,883
Exabyte Corp 0 -- 0 -- 298 1,490 0 -- 0 --
Gateway 2000 Inc 145 10,540 935 67,963 2,515 182,809 2,325 168,997 2,915 211,883
Harris Corp 104 3,237 707 22,005 1,520 47,310 1,363 42,423 2,612 81,298
Hewlett-Packard Co 1,134 75,340 8,013 532,363 18,775 1,247,364 17,381 1,154,749 35,559 2,362,450
Intergraph Corp 54 299 322 1,781 755 4,176 523 2,893 876 4,845
International Business
Machine Corp 940 159,799 6,207 1,055,189 14,910 2,534,700 13,488 2,292,959 30,953 5,262,009
Iomega Corp 1,000 6,063 3,469 21,031 6,267 37,994 5,967 36,175 12,203 73,980
Komag Inc 400 2,800 528 3,696 964 6,748 714 4,998 972 6,804
NCR Corp 571 23,375 1,208 49,453 1,924 78,764 1,843 75,448 5,321 217,827
Quantum Corp 700 11,506 1,860 30,574 3,413 56,101 3,277 53,866 6,801 111,790
Rational Software Corp 0 -- 792 23,513 1,578 46,847 1,429 42,423 2,826 83,896
Seagate Technology Inc 217 6,279 1,824 52,782 4,383 126,833 3,963 114,679 8,176 236,592
Sequent Computer Systems 340 3,241 0 -- 413 3,936 304 2,898 0 --
Shared Medical System Corp 42 2,142 150 7,650 456 23,256 374 19,074 934 47,634
Silicon Graphics Inc 204 3,251 1,414 22,536 3,419 54,490 3,198 50,968 6,411 102,174
Sybase Inc 700 5,688 616 5,005 1,227 9,969 1,071 8,702 2,208 17,940
Unisys Corp 240 7,155 1,642 48,952 4,141 123,454 3,660 109,114 8,421 251,050
Unova Inc 34 493 382 5,539 927 13,442 730 10,585 1,467 21,272
Wallace Computer Services
Inc 90 2,036 176 3,982 263 5,950 277 6,267 618 13,982
Western Digital Corp 700 6,738 1,232 11,858 2,367 22,782 2,143 20,626 4,593 44,208
Xylan Corp 100 2,650 88 2,332 0 -- 89 2,359 177 4,691
-------- ---------- ----------- ---------- -----------
TOTAL COMPUTER
SYSTEMS
- VALUE $728,708 $4,567,940 $10,879,938 $9,892,302 $21,943,833
- COST $435,579 $2,213,728 $ 5,037,303 $4,449,907 $11,203,653
CONTAINER & PACKAGING
Percent of Net Assets 0.06% 0.13% 0.20% 0.24% 0.29%
Ball Corp 44 $ 1,843 281 $ 11,767 532 $ 22,278 528 $ 22,110 939 $ 39,321
Crown Cork & Seal Co 165 4,579 1,014 28,139 2,239 62,132 2,040 56,610 4,167 115,633
International Paper Co 332 13,944 2,336 98,112 5,533 232,386 5,143 216,005 10,544 442,847
Jefferson Smurfit Group
ADR (Ireland) 805 17,609 2,860 62,563 5,640 123,375 5,151 112,678 11,094 242,680
Smurfit-Stone Container
Corp 686 12,391 1,104 19,941 3,338 60,290 2,912 52,598 6,114 110,433
Sonoco Products 526 12,887 1,212 29,694 1,923 47,114 2,218 54,341 5,317 130,266
Temple-Inland Inc 49 2,937 455 27,272 1,016 60,897 949 56,881 1,895 113,581
Tenneco Inc 108 3,233 1,315 39,368 3,053 91,399 2,782 83,286 5,672 169,804
Tupperware Corp 63 1,103 380 6,650 1,126 19,705 914 15,995 2,267 39,673
-------- ---------- ----------- ---------- -----------
TOTAL CONTAINER &
PACKAGING
- VALUE $ 70,526 $ 323,506 $ 719,576 $ 670,504 $ 1,404,238
- COST $ 79,184 $ 392,661 $ 864,326 $ 808,672 $ 1,757,328
</TABLE>
33
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ------------------- ------------------- ------------------ -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
ELECTRICAL EQUIPMENT
Percent of Net Assets 0.48% 1.23% 1.94% 2.33% 2.91%
Aeroquip-Vickers Inc 52 $ 2,945 229 $ 12,967 552 $ 31,257 433 $ 24,519 1,026 $ 58,096
Alliance Semiconductor
Corp 0 -- 0 -- 0 -- 0 -- 221 774
Arrow Electronics Inc 386 5,476 1,237 17,550 2,290 32,489 2,161 30,659 4,372 62,027
Avnet Inc 230 9,128 484 19,209 889 35,282 946 37,544 1,956 77,628
FORE Systems Inc 400 5,800 1,244 18,038 2,204 31,958 2,143 31,074 4,328 62,755
General Electric Co 3,903 391,519 21,622 2,168,956 52,414 5,257,779 47,108 4,725,520 108,512 10,885,109
Grainger (W W) Inc 72 3,204 754 33,553 1,772 78,854 1,655 73,648 3,286 146,226
Handleman Co 59 763 116 1,501 409 5,291 274 3,545 460 5,951
Hitachi Ltd ADR (Japan) 732 45,521 3,124 194,274 7,158 445,138 7,064 439,292 14,076 875,350
Hubbell Inc Class B 332 12,367 674 25,107 1,409 52,485 1,459 54,348 2,916 108,620
Masco Corp 322 8,453 2,583 67,804 6,168 161,910 5,644 148,154 11,657 305,995
Motorola Inc 776 54,514 4,916 345,349 11,342 796,776 10,288 722,731 20,439 1,435,839
National Service
Industries Inc 39 1,253 332 10,666 756 24,287 669 21,492 1,364 43,819
Raychem Corp 44 1,004 674 15,376 1,493 34,059 1,356 30,934 2,847 64,946
Symbol Technologies Inc 285 15,105 679 35,987 1,295 68,635 1,279 67,787 2,550 135,149
Thomas & Betts Corp 58 2,418 434 18,092 995 41,479 963 40,145 1,814 75,620
-------- ---------- ---------- ---------- -----------
TOTAL ELECTRICAL
EQUIPMENT
- VALUE $559,470 $2,984,429 $7,097,679 $6,451,392 $14,343,904
- COST $410,056 $1,924,414 $4,476,618 $4,156,010 $ 9,904,479
ELECTRONICS
Percent of Net Assets 1.07% 2.11% 3.14% 3.89% 4.72%
Advanced Micro Devices 130 $ 2,324 1,076 $ 19,234 2,582 $ 46,153 2,357 $ 42,131 4,589 $ 82,027
American Power Conversion 400 14,350 962 34,512 1,585 56,862 1,437 51,552 4,116 147,660
AMP Inc 209 11,116 1,670 88,823 3,949 210,037 3,595 191,208 7,348 390,821
Analog Devices Inc 901 22,581 1,883 47,193 3,026 75,839 2,822 70,726 8,240 206,514
Applied Materials Inc 415 23,084 2,836 157,753 6,637 369,183 6,129 340,925 12,565 698,927
Atmel Corp 662 11,378 1,373 23,598 2,600 44,688 2,400 41,250 5,411 93,001
C-Cube Microsystems Inc 100 1,875 264 4,950 263 4,931 357 6,694 618 11,588
Canon Inc ADR (Japan) 1,390 30,059 6,130 132,561 14,245 308,048 14,105 305,020 28,020 605,932
CBS Corp 760 28,025 5,472 201,780 12,879 474,913 11,932 439,992 24,561 905,686
Cirrus Logic Inc 634 5,151 686 5,574 1,311 10,652 952 7,735 1,334 10,839
Commscope Inc 50 928 304 5,643 694 12,882 546 10,135 1,371 25,449
Conexant Systems Inc 110 1,870 890 15,122 1,882 31,994 1,624 27,608 3,175 53,974
Cypress Semiconductor
Corp 800 7,650 739 7,067 1,196 11,437 1,271 12,154 2,800 26,775
EG&G Inc 25 663 333 8,825 852 22,578 718 19,027 1,517 40,201
Electronics for Imaging
Inc 400 13,975 440 15,373 877 30,640 893 31,199 1,766 61,699
Emerson Electric Co 565 32,452 2,943 169,039 6,950 399,191 6,336 363,923 14,348 824,112
Etec Systems Inc 0 -- 176 7,799 351 15,554 268 11,876 618 27,385
Fuji Photo Film Co Ltd
ADR (Japan) 975 36,075 3,960 146,520 9,224 341,288 9,036 334,331 18,050 667,849
General Instrument Corp 0 -- 935 27,349 2,435 71,224 2,130 62,303 200 5,850
General Motors Class H 600 28,312 1,332 62,854 2,028 95,696 1,875 88,477 5,476 258,398
General Semiconductor Inc 37 241 229 1,489 521 3,387 410 2,665 1,028 6,682
</TABLE>
34
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ------------------ ------------------ ------------------ ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Honeywell Inc 164 $ 11,470 984 $ 68,819 2,299 $ 160,786 2,142 $ 149,805 4,307 $ 301,220
Imation Corp 276 4,278 454 7,037 615 9,532 653 10,121 1,428 22,134
Input/Output Inc 500 2,813 440 2,475 876 4,928 625 3,516 972 5,468
Integrated Device
Technology Inc 700 4,506 704 4,532 1,490 9,592 714 4,596 1,855 11,942
Intel Corp 1,666 199,815 10,976 1,316,433 26,586 3,188,658 23,975 2,875,501 55,257 6,627,385
International Rectifier
Corp 500 3,438 440 3,025 877 6,029 625 4,297 972 6,683
Jabil Circuit 200 6,525 352 11,484 702 22,903 714 23,294 1,414 46,132
Johnson Controls Inc 86 5,289 665 40,898 1,556 95,694 1,430 87,945 2,840 174,659
KLA Instruments Corp 94 4,870 701 36,321 1,559 80,776 1,455 75,387 3,023 156,628
Kyocera Corp ADR (Japan) 860 41,011 3,258 155,366 7,252 345,830 7,260 346,210 14,454 689,274
Lam Research Corp 300 8,869 264 7,805 438 12,948 446 13,185 1,060 31,336
Lattice Semiconductor 100 3,975 352 14,036 614 24,483 625 24,922 1,237 49,325
Lexmark International
Group Class A 400 41,275 792 81,725 1,140 117,634 1,161 119,801 3,003 309,871
Linear Technology Corp 972 42,586 1,796 78,687 2,804 122,850 2,696 118,119 8,038 352,164
Litton Industries Inc 201 11,281 343 19,251 621 34,854 896 50,288 1,836 103,045
LSI Logic Corp 118 3,061 1,099 28,505 2,542 65,933 2,426 62,924 4,610 119,571
Macromedia Inc 400 12,225 352 10,758 614 18,765 446 13,631 795 24,297
Matsushita Electric
Industries Co 257 42,260 1,133 186,308 2,561 421,124 2,521 414,546 4,966 816,596
Maxim Integrated
Products Inc 700 29,181 1,420 59,196 2,291 95,506 2,054 85,626 6,359 265,090
MEMC Electronic
Materials Inc 300 2,175 264 1,914 351 2,545 357 2,588 707 5,126
Microchip Technology Inc 400 10,900 704 19,184 1,315 35,834 1,295 35,289 2,738 74,610
Micron Electronics Inc 0 -- 176 2,530 351 5,046 268 3,853 442 6,354
Micron Technology Inc 245 14,118 1,582 91,163 3,910 225,314 3,570 205,720 7,103 409,309
Molex Inc 316 8,453 524 14,017 1,087 29,077 998 26,697 2,193 58,662
Molex Inc Class A 312 7,332 1,049 24,652 1,805 42,418 1,686 39,621 3,512 82,531
National Semiconductor 186 1,953 1,192 12,516 2,984 31,332 2,779 29,180 5,376 56,447
Novellus System Inc 200 11,813 440 25,988 877 51,798 804 47,486 1,678 99,106
Perkin-Elmer Corp 19 1,800 386 36,574 794 75,232 748 70,873 1,687 159,842
Philips Electronics NV
ADR (Netherlands) 583 40,591 1,947 135,560 3,881 270,215 3,858 268,612 7,625 530,890
Pioneer Electronics Corp 2,192 40,415 8,917 164,407 20,694 381,546 20,537 378,650 40,856 753,282
Pitney Bowes Inc 266 16,808 1,821 115,064 4,423 279,478 3,909 246,999 9,119 576,206
Pixar Inc 0 -- 88 3,619 263 10,816 268 11,022 530 21,796
Policy Management Systems
Corp 496 18,135 299 10,932 531 19,415 461 16,855 866 31,663
Premier Farnell PLC ADR
(UK) 2,599 15,594 9,419 56,514 18,699 112,194 17,176 103,056 36,409 218,453
Rambus Inc 0 -- 88 6,397 263 19,117 179 13,011 442 32,128
Raytheon Co Class B 384 20,520 2,578 137,762 6,135 327,839 5,633 301,012 11,561 617,790
Read-Rite Corp 400 3,400 440 3,740 526 4,471 714 6,069 1,502 12,767
Sanmina Corp 200 10,425 440 22,990 701 36,627 714 37,307 1,590 83,077
SCI Systems Inc 400 12,375 704 21,780 1,402 43,374 1,429 44,210 2,915 90,182
Sensormatic Electronics 535 5,618 765 8,033 1,510 15,855 936 9,828 1,665 17,482
Solectron Corp 1,200 53,625 2,228 99,564 3,966 177,231 3,770 168,471 8,516 380,558
SONY Corp ADR (Japan) 468 34,954 1,882 140,562 4,350 324,891 4,233 316,151 8,466 632,303
Tektronix Inc 3 59 356 6,942 904 17,628 808 15,756 1,724 33,618
Teradyne Inc 476 22,670 898 42,767 1,581 75,295 2,054 97,822 4,284 204,025
</TABLE>
35
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------- ------------------- -------------------- -------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Texas Instruments Inc 450 $ 40,134 2,982 $ 265,957 7,051 $ 628,861 6,545 $ 583,731 13,322 $ 1,188,155
Thermo Instrument
Systems Inc 250 3,703 225 3,333 394 5,836 457 6,769 814 12,057
Vishay Intertechnology
Inc 463 5,990 412 5,330 812 10,505 722 9,341 1,529 19,781
Vitesse Semiconductor
Corp 300 13,763 792 36,383 1,678 77,083 1,518 69,733 3,180 146,080
VLSI Technology Inc 200 3,100 352 5,456 877 13,594 714 11,067 1,502 23,281
Xerox Corp 830 45,806 4,312 237,969 10,400 573,950 9,444 521,190 21,270 1,173,837
Xilinx Inc 447 31,178 792 55,242 1,367 95,348 1,673 116,692 3,462 241,474
Zenith Electronics Corp 44 16 89 32 279 100 230 83 367 132
---------- ---------- ----------- ----------- -----------
TOTAL ELECTRONICS
- VALUE $1,248,260 $5,130,592 $11,495,867 $10,759,389 $23,257,193
- COST $1,030,747 $3,617,491 $ 8,017,047 $ 7,639,049 $17,530,241
ENERGY & RELATED
Percent of Net Assets 1.10% 2.60% 3.82% 4.67% 4.97%
AGL Resources Inc 538 $ 10,256 387 $ 7,377 699 $ 13,325 498 $ 9,493 459 $ 8,750
Amerada Hess Corp 122 5,536 705 31,989 1,694 76,865 1,531 69,469 3,073 139,436
Anadarko Petroleum Corp 162 4,455 905 24,888 2,132 58,630 1,963 53,983 3,942 108,404
Apache Corp 96 1,914 818 16,309 1,806 36,007 1,638 32,658 3,179 63,380
Ashland Inc 99 4,406 581 25,855 1,385 61,633 1,285 57,183 2,584 114,987
Atlantic Richfield Corp 333 18,190 2,485 135,743 5,837 318,846 5,367 293,171 11,015 601,693
BP Amoco PLC ADR (Great
Britain) 1,954 166,089 9,350 794,749 19,994 1,699,490 18,554 1,577,089 16,981 1,443,384
Burlington Resources Inc 204 6,605 1,301 42,120 3,213 104,021 2,984 96,607 5,922 191,724
Chesapeake Energy Corp 0 -- 352 242 876 602 446 307 884 608
Chevron Corp 770 59,194 4,980 382,838 11,763 904,281 10,931 840,320 22,389 1,721,153
Coastal Corp 244 7,808 1,568 50,176 3,827 122,464 3,540 113,280 7,265 232,479
Columbia Gas System Inc 142 7,146 642 32,396 1,574 79,487 1,375 69,438 2,826 142,712
Conoco Inc 0 -- 100 2,031 100 2,031 -- -- 265 5,383
Consolidated Natural Gas
Co 122 6,702 711 39,061 1,785 98,063 1,626 89,328 3,213 176,513
Cooper Cameron Corp 300 6,938 616 14,245 1,140 26,363 1,161 26,848 2,385 55,152
Devon Energy Corp 0 -- 176 4,125 438 10,266 357 8,367 795 18,633
Diamond Offshore
Drilling Inc 300 6,206 980 20,274 1,765 36,513 1,607 33,245 3,356 69,426
Dynegy Inc 0 -- 0 -- 1,402 16,824 -- -- 0 --
Eastern Enterprises 39 1,499 180 6,919 421 16,182 382 14,683 711 27,329
EEX Corp 45 273 355 2,152 564 3,419 697 4,226 1,433 8,688
ELF Aquitaine ADR
(France) 1,556 80,328 5,612 289,720 11,129 574,535 10,865 560,905 21,650 1,117,680
Enron Corp 338 21,970 2,538 164,970 5,925 385,125 5,501 357,564 11,240 730,599
Enron Oil & Gas Co 200 3,300 980 16,170 1,765 29,123 1,518 25,047 3,445 56,842
Exxon Corp 3,057 203,481 20,228 1,346,425 46,376 3,086,903 41,911 2,789,700 83,542 5,560,763
Global Marine Inc 800 6,200 2,189 16,965 4,007 31,054 3,764 29,171 7,923 61,402
Halliburton Co 575 16,244 3,195 90,259 6,964 196,733 6,311 178,285 14,439 407,901
Helmerich & Payne Inc 30 489 400 6,525 905 14,763 840 13,703 1,675 27,323
Indiana Energy Inc 0 -- 0 -- 411 8,226 -- -- 0 --
Kerr-McGee Corp 43 1,228 328 9,369 1,555 44,403 1,457 41,607 3,092 88,311
McMoRan Exploration Co 46 748 41 666 79 1,284 41 666 79 1,284
MCN Corp 0 -- 0 -- 815 14,517 0 -- 0 --
</TABLE>
36
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ----------------- ------------------- ------------------- -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Mobil Corp 869 $ 72,290 5,990 $498,292 14,116 $1,174,275 12,983 $1,080,022 26,800 $2,229,424
Murphy Oil Corp 293 10,017 510 17,436 1,032 35,282 979 33,470 2,093 71,553
Nabors Industries Inc 500 5,750 1,332 15,318 2,366 27,209 2,258 25,967 4,593 52,819
National Fuel Gas Co 0 -- 0 -- 510 20,559 -- -- 0 --
NICOR Inc 44 1,680 330 12,602 889 33,949 801 30,588 1,559 59,533
Noble Affiliates Inc 238 5,385 742 16,788 1,391 31,471 1,212 27,422 2,579 58,349
Noble Drilling Corp 700 8,663 1,860 23,018 3,256 40,293 3,125 38,672 6,448 79,793
Occidental Petroleum Corp 400 6,025 2,755 41,497 6,362 95,828 5,794 87,272 12,205 183,837
Ocean Energy Inc 500 2,125 1,425 6,056 2,288 9,724 2,303 9,788 4,584 19,482
ONEOK Inc 49 1,320 225 6,061 593 15,974 497 13,388 955 25,725
Oryx Energy Co 149 1,546 787 8,165 0 -- -- -- 0 --
Parker Drilling Co 0 -- 0 -- 740 1,850 552 1,380 0 --
Pennzenergy Co 32 300 408 3,825 882 8,269 767 7,191 1,484 13,913
Pennzoil-Quaker State Co 32 398 408 5,075 1,184 14,726 986 12,263 1,484 18,457
Peoples Energy Corp 53 1,799 245 8,315 659 22,365 577 19,582 1,181 40,080
Phillips Petroleum Co 269 10,407 2,179 84,300 4,961 191,929 4,425 171,191 8,724 337,509
Pioneer Natural Resources
C.L.C. 476 2,469 1,329 6,894 2,409 12,497 2,219 11,511 4,648 24,112
Pogo Producing Co 300 2,775 264 2,442 526 4,866 446 4,126 972 8,991
Pride International Inc 0 -- 352 1,760 701 3,505 714 3,570 1,502 7,510
Questar Corp 354 6,328 1,138 20,342 1,958 34,999 1,857 33,194 3,763 67,263
Reading & Bates Falcon
Corp 372 2,046 1,531 8,421 2,744 15,092 2,587 14,229 5,337 29,354
Repsol SA 767 40,268 2,800 147,000 5,675 297,938 5,650 296,624 11,013 578,181
Rowan Co Inc 66 569 669 5,770 1,489 12,843 1,417 12,222 2,819 24,314
Royal Dutch Petroleum
Corp 3,876 170,059 13,868 608,458 27,612 1,211,476 26,930 1,181,553 53,872 2,363,633
Santa Fe Energy Resources
Inc 83 436 712 3,738 1,643 8,626 1,106 5,806 2,496 13,104
Schlumberger Ltd 781 37,927 3,655 177,496 8,691 422,057 7,783 377,961 17,813 865,043
Seagull Energy Corp 391 1,857 536 2,546 1,094 5,196 985 4,679 2,010 9,548
Services (B J) Co 300 4,219 1,068 15,019 1,941 27,295 1,696 23,850 3,710 52,172
Sonat Offshore Drilling
Co 122 3,088 886 22,427 2,020 51,131 1,854 46,929 3,646 92,288
Sunoco Inc 105 3,196 718 21,854 1,683 51,226 1,611 49,035 3,187 97,003
Texaco Inc 612 28,496 4,071 189,556 9,697 451,517 8,918 415,243 18,423 857,820
Tosco Corp 771 15,950 1,895 39,203 3,490 72,199 3,372 69,758 6,920 143,157
Total Compagnie Francaise
des Petroles SA ADR
(France) 2,028 104,695 7,375 380,734 14,814 764,773 14,367 741,695 28,765 1,484,992
Transocean Offshore Inc 400 8,250 1,244 25,658 2,204 45,458 2,054 42,364 4,240 87,449
TransTexas Gas Corp 0 -- 0 -- 0 -- -- -- 265 282
Ultramar Diamond Shamrock
Corp 510 10,073 1,116 22,041 1,715 33,871 2,264 44,714 4,527 89,407
Union Pacific Resources
Group 242 2,163 1,903 17,008 4,508 40,290 4,237 37,868 8,313 74,296
Unocal Corp 204 5,750 1,836 51,752 4,350 122,616 3,991 112,496 8,254 232,659
USX--Marathon Group 365 7,551 2,430 50,271 5,589 115,622 5,036 104,182 9,937 205,571
Utilicorp United Inc 0 -- 0 -- 592 20,350 -- -- 0 --
Valero Energy Corp 180 3,161 778 13,664 1,383 24,289 1,236 21,707 2,703 47,471
Vastar Resources Inc 200 7,700 264 10,164 438 16,863 446 17,171 883 33,996
Washington Gas & Light 464 11,107 317 7,588 547 13,094 405 9,695 389 9,312
</TABLE>
37
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------- ------------------- -------------------- -------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Williams Co Inc 560 $ 20,720 3,558 $ 131,646 8,024 $ 296,888 7,344 $ 271,727 14,552 $ 538,423
Witco Corp 216 3,659 874 14,803 1,548 26,219 1,359 23,018 2,910 49,288
---------- ---------- ----------- ----------- -----------
TOTAL ENERGY &
RELATED
- VALUE $1,279,422 $6,319,561 $13,998,477 $12,921,466 $24,459,052
- COST $1,274,372 $5,677,988 $12,398,013 $11,503,733 $24,313,591
ENGINEERING & CONSTRUCTION
Percent of Net Assets 0.03% 0.05% 0.08% 0.09% 0.10%
Armstrong World Industries
Inc 92 $ 4,525 284 $ 13,969 723 $ 35,563 684 $ 33,644 1,348 $ 66,304
Centex Corp 104 3,829 468 17,228 1,070 39,389 999 36,776 1,977 72,777
Clayton Homes Inc 657 8,130 1,621 20,060 2,888 35,739 2,812 34,799 5,638 69,769
Fleetwood Enterprises Inc 32 1,038 313 10,153 608 19,722 565 18,327 1,200 38,925
Fluor Corp 113 3,976 614 21,605 1,409 49,579 1,276 44,899 2,708 95,287
Foster Wheeler Corp 42 525 316 3,950 717 8,963 678 8,475 1,299 16,238
Granite Construction Inc 0 -- 0 -- 355 8,720 -- -- 0 --
Kaufman & Broad Home Corp 49 1,103 298 6,705 724 16,290 647 14,558 1,239 27,878
Pulte Corp 90 2,166 354 8,518 776 18,673 737 17,734 1,411 33,952
Rouse Co 300 7,013 980 22,908 1,678 39,223 1,518 35,483 3,180 74,332
---------- ---------- ----------- ----------- -----------
TOTAL ENGINEERING &
CONSTRUCTION
- VALUE $ 32,305 $ 125,096 $ 271,861 $ 244,695 $ 495,462
- COST $ 29,024 $ 141,065 $ 302,236 $ 278,512 $ 604,425
ENTERTAINMENT & LEISURE
Percent of Net Assets 0.21% 0.59% 0.90% 1.10% 1.26%
AMF Bowling Inc 0 $ -- 176 $ 803 351 $ 1,601 268 $ 1,223 707 $ 3,226
Ascent Entertainment Group 249 2,708 258 2,806 351 3,817 354 3,850 600 6,525
Bally Total Fitness
Holding Corp 26 585 67 1,508 162 3,645 104 2,340 197 4,433
Boyd Gaming Corp 0 -- 176 726 0 -- 268 1,106 619 2,553
Brunswick Corp 126 2,685 795 16,943 1,822 38,831 1,645 35,059 3,245 69,158
Callaway Golf Co 296 3,219 950 10,331 1,716 18,662 1,746 18,988 3,635 39,531
Circus Circus
Entertainment Inc 529 9,059 1,270 21,749 2,311 39,576 2,198 37,641 4,412 75,555
Coleman Co Inc 0 -- 176 1,650 0 -- -- -- 177 1,659
Disney (Walt) Co 2,279 80,191 15,761 554,589 36,923 1,299,228 34,124 1,200,737 70,223 2,470,971
Gaylord Entertainment Co
Class A 105 2,618 92 2,294 123 3,067 153 3,815 221 5,511
Harrah's Entertainment Inc 48 801 712 11,882 1,762 29,403 1,652 27,568 3,353 55,952
Hasbro Inc 178 6,586 1,050 38,850 2,328 86,136 2,202 81,474 4,401 162,836
International Game
Technology Inc 597 11,343 1,244 23,636 2,004 38,076 2,783 52,877 5,781 109,838
Lakes Gaming Inc 100 913 88 803 153 1,396 112 1,022 199 1,816
Mattel Inc 321 8,466 1,949 51,405 4,628 122,064 4,125 108,797 9,523 251,168
Metro-Goldwyn-Mayer Inc 0 -- 503 5,250 903 9,425 613 6,398 1,617 16,877
MGM Grand Inc 145 5,461 128 4,820 253 9,563 258 9,752 691 26,104
Mirage Resorts Inc 217 4,232 1,351 26,345 3,265 63,668 3,059 59,651 5,814 113,372
Navigant International Inc 0 -- 81 456 168 945 144 810 322 1,811
Polaroid Corp 34 812 327 7,807 796 19,005 742 17,715 1,447 34,547
</TABLE>
38
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030
------------------ -------------------- -------------------- --------------------
Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Spelling Entertainment Group Inc 0 $ -- 0 $ -- 0 $ -- -- $ --
Tiffany & Co 226 12,924 440 25,163 771 44,092 768 43,920
Time Warner Inc 1,474 95,072 9,831 634,099 22,773 1,468,859 20,494 1,321,862
Topp Inc 512 2,240 0 -- 633 2,769 470 2,056
-------- ---------- ---------- ----------
TOTAL ENTERTAINMENT &
LEISURE
- VALUE $249,915 $1,443,915 $3,303,828 $3,038,661
- COST $195,523 $ 954,031 $2,086,567 $1,883,789
ENVIRONMENTAL CONTROL
Percent of Net Assets 0.10% 0.15% 0.21% 0.27%
Allied Waste Industries Inc 500 $ 9,750 1,420 $ 27,690 2,642 $ 51,519 2,500 $ 48,750
Browning-Ferris Industries Inc 167 5,261 1,308 41,202 3,078 96,957 2,876 90,594
Republic Industries Inc 2,000 24,500 4,816 58,996 7,789 95,415 7,322 89,695
Republic Services Inc Class A 0 -- 0 -- 0 -- -- --
Safety-Kleen Corp 87 1,213 379 5,282 865 12,056 773 10,774
U.S. Filter Corp 900 22,106 2,124 52,171 3,080 75,653 3,750 92,109
Waste Management Inc 1,012 49,462 3,834 187,387 9,300 454,538 8,278 404,586
-------- ---------- ---------- ----------
TOTAL ENVIRONMENTAL
CONTROL
- VALUE $112,292 $ 372,728 $ 786,138 $ 736,508
- COST $119,489 $ 419,658 $ 840,723 $ 810,773
FOOD & RELATED
Percent of Net Assets 0.95% 1.82% 2.62% 3.24%
Albertson's Inc 225 $ 12,825 1,825 $ 104,025 4,400 $ 250,800 4,063 $ 231,590
American Stores Co 271 9,146 2,122 71,618 4,999 168,716 4,560 153,899
Archer-Daniels-Midland Co 705 10,663 4,589 69,409 10,827 163,758 10,062 152,187
Bestfoods 321 15,067 1,939 91,012 4,705 220,841 4,106 192,724
Bob Evans Farms Inc 468 10,091 317 6,835 659 14,210 421 9,078
Boston Chicken Inc 600 396 500 330 700 462 700 462
Brinker International Inc 956 27,664 971 28,098 1,740 50,351 1,045 30,240
Brown-Forman Corp Class B 64 4,220 518 34,156 1,230 81,103 1,140 75,169
Campbell Soup Co 480 19,290 2,934 117,910 7,177 288,426 6,541 262,865
CBRL Group Inc 249 4,669 901 16,894 1,600 30,000 1,492 27,975
CKE Restaurants Inc 220 5,844 484 12,856 968 25,713 786 20,878
ConAgra Inc 758 22,835 3,222 97,063 7,827 235,788 7,023 211,567
Corn Product International Inc 60 1,410 260 6,110 610 14,335 508 11,938
Darden Restaurants Inc 90 1,980 1,024 22,528 2,479 54,538 2,351 51,722
Dave & Buster's Inc 0 -- 0 -- 90 1,772 -- --
Dean Foods Co 224 8,162 475 17,308 1,058 38,551 1,015 36,984
Dole Food Inc 346 10,899 625 19,688 1,234 38,871 1,132 35,658
Earthgrains Co 56 1,376 257 6,313 586 14,394 479 11,765
Fleming Co Inc 2 15 256 1,888 702 5,177 526 3,879
Flowers Industries Inc 409 9,969 1,262 30,761 2,219 54,088 2,175 53,016
Food Lion Inc Class A 900 8,578 2,400 22,875 4,320 41,175 4,018 38,297
Food Lion Inc Class B 1,300 12,675 2,564 24,999 4,758 46,391 4,553 44,392
</TABLE>
<TABLE>
<CAPTION>
LifePath 2040
--------------------
Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Spelling Entertainment Group Inc 353 $ 2,537
Tiffany & Co 1,590 90,927
Time Warner Inc 41,052 2,647,853
Topp Inc 0 --
----------
TOTAL ENTERTAINMENT &
LEISURE
- VALUE $6,194,760
- COST $4,141,492
ENVIRONMENTAL CONTROL
Percent of Net Assets 0.34%
Allied Waste Industries Inc 5,123 $ 99,898
Browning-Ferris Industries Inc 6,104 192,275
Republic Industries Inc 18,698 229,050
Republic Services Inc Class A 88 1,535
Safety-Kleen Corp 1,313 18,300
U.S. Filter Corp 7,772 190,899
Waste Management Inc 19,054 931,263
----------
TOTAL ENVIRONMENTAL
CONTROL
- VALUE $1,663,220
- COST $1,793,218
FOOD & RELATED
Percent of Net Assets 3.89%
Albertson's Inc 8,399 $ 478,742
American Stores Co 9,375 316,405
Archer-Daniels-Midland Co 20,567 311,075
Bestfoods 9,519 446,797
Bob Evans Farms Inc 1,104 23,805
Boston Chicken Inc 1,100 726
Brinker International Inc 1,970 57,006
Brown-Forman Corp Class B 2,270 149,677
Campbell Soup Co 14,929 599,958
CBRL Group Inc 3,113 58,368
CKE Restaurants Inc 1,749 46,458
ConAgra Inc 16,046 483,385
Corn Product International Inc 1,208 28,388
Darden Restaurants Inc 4,803 105,665
Dave & Buster's Inc 0 --
Dean Foods Co 2,124 77,392
Dole Food Inc 2,407 75,820
Earthgrains Co 1,169 28,714
Fleming Co Inc 1,065 7,854
Flowers Industries Inc 4,341 105,811
Food Lion Inc Class A 8,391 79,976
Food Lion Inc Class B 9,274 90,421
</TABLE>
39
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ---------------- ------------------ ----------------- ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
General Mills Inc 155 $ 12,507 967 $ 78,025 2,440 $ 196,878 2,222 $179,287 5,227 $ 421,753
General Nutrition Co Inc 300 4,013 1,244 16,639 2,204 29,479 2,054 27,472 4,151 55,519
Great Atlantic & Pacific
Tea Co 59 1,862 278 8,774 717 22,630 607 19,158 1,217 38,412
Hannaford Brothers Co 236 11,092 405 19,035 828 38,916 772 36,284 1,537 72,238
Heinz (H J) Co 315 17,148 2,488 135,441 5,760 313,560 5,162 281,005 12,091 658,203
Hershey Foods Corp 159 9,898 890 55,403 2,268 141,183 2,139 133,152 4,883 303,966
Hormel Foods Corp 300 10,800 616 22,176 1,140 41,040 1,161 41,796 2,385 85,859
Host Marriott Services
Corp 240 1,680 211 1,477 333 2,331 286 2,002 601 4,207
IBP Inc 432 9,720 1,086 24,435 1,636 36,810 2,270 51,075 4,593 103,342
Imperial Sugar Co 0 -- 0 -- 117 841 84 604 0 --
International Home Foods Inc 200 3,125 352 5,500 701 10,953 714 11,156 1,413 22,078
International Multifoods Corp 0 -- 0 -- 240 5,190 -- -- 0 --
Interstate Bakeries Corp 200 4,800 528 12,672 1,052 25,248 1,071 25,704 2,120 50,880
Keebler Foods Co 200 7,800 88 3,432 175 6,825 893 34,827 1,766 68,873
Kellogg Co 446 16,502 2,624 97,088 6,546 242,202 5,870 217,189 13,618 503,865
Koninklijke Ahold NV ADR 2,910 112,398 10,505 405,758 20,963 809,699 20,424 788,895 40,394 1,560,205
(Netherlands)
Kroger Co 201 13,002 1,691 109,387 4,160 269,100 3,604 233,133 8,544 552,689
Lancaster Colony Corp 207 5,693 431 11,853 881 24,228 857 23,568 1,759 48,373
Lance Inc 0 -- 0 -- 419 6,914 -- -- 0 --
Lone Star Steakhouse
& Saloon 300 2,719 352 3,190 614 5,564 446 4,042 795 7,205
Luby's Cafeteria Inc 45 638 193 2,738 421 5,973 329 4,668 549 7,789
McCormick & Co Inc 388 11,107 892 25,534 1,551 44,397 1,433 41,020 2,963 84,815
McDonald's Corp 729 61,965 5,300 450,499 12,306 1,046,010 11,457 973,844 23,469 1,994,864
Michael Foods Inc 0 -- 0 -- 201 3,719 -- -- 0 --
Nabisco Holdings Corp
Class A 200 8,875 176 7,810 263 11,671 268 11,893 530 23,519
NPC International Inc 0 -- 0 -- 328 4,715 253 3,637 0 --
Outback Steakhouse Inc 200 8,775 528 23,166 877 38,478 893 39,180 1,855 81,387
Pioneer Hi Bred
International Inc 345 8,086 1,592 37,313 3,920 91,875 3,464 81,188 7,973 186,866
Planet Hollywood
International 0 -- 176 429 438 1,068 357 870 530 1,292
Quaker Oats Co 102 5,572 813 44,410 2,120 115,805 2,010 109,796 4,684 255,863
Ralston-Purina Group 295 7,947 2,148 57,862 5,111 137,678 4,420 119,064 10,539 283,893
Richfood Holdings Inc 0 -- 440 10,450 0 -- 536 12,730 883 20,971
RJR Nabisco Holdings Corp 370 10,106 2,453 66,998 5,845 159,642 5,466 149,289 15,413 420,967
Ruby Tuesday Inc 384 7,152 176 3,278 563 10,486 355 6,612 684 12,739
Ryans Family Steak House 119 1,354 454 5,164 887 10,090 606 6,893 918 10,442
Safeway Inc 1,598 92,284 4,393 253,696 7,460 430,815 7,203 415,972 13,689 790,539
Sara Lee Corp 851 23,137 6,096 165,735 14,659 398,542 13,076 355,503 30,434 827,423
Sbarro Inc 0 -- 0 -- 280 7,070 196 4,949 0 --
Shoney's Inc 97 224 325 752 658 1,522 532 1,230 1,152 2,664
Sizzler International Inc 254 540 0 -- 380 808 284 604 0 --
Smucker (J M) Co Class A 305 7,244 0 -- 382 9,073 295 7,006 0 --
Southland Corp 1,800 2,981 1,232 2,041 2,279 3,775 1,607 2,662 3,710 6,145
Starbucks Corp 500 26,438 1,068 56,471 1,678 88,724 1,518 80,264 4,504 238,148
Suiza Foods Corp 200 7,400 352 13,024 701 25,937 714 26,418 1,502 55,573
Super Value Inc 86 2,069 941 22,643 2,198 52,889 2,073 49,882 3,966 95,431
</TABLE>
40
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020
-------------------- -------------------- --------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Sysco Corp 250 $ 7,063 2,229 $ 62,969 5,395 $ 152,409
Tootsie Roll Industries 436 20,056 209 9,614 573 26,358
Tricon Global Restaurants 171 10,602 910 56,420 2,385 147,870
Tyson Food Inc Class A 491 10,066 883 18,102 1,337 27,409
Unilever NV (Netherlands) 3,712 268,887 13,512 978,775 27,000 1,955,813
Universal Corp 181 4,921 528 14,355 911 24,768
Universal Foods Corp 558 12,660 663 15,042 817 18,536
UST Inc 172 5,085 1,148 33,938 2,973 87,889
Vlasic Foods International Inc 80 975 318 3,876 729 8,885
Weis Markets Inc 200 7,275 176 6,402 263 9,567
Wendy's International Inc 141 3,375 1,015 24,297 2,244 53,716
Whole Foods Market Inc 200 6,175 352 10,868 701 21,643
Winn-Dixie Stores Inc 146 6,397 1,149 50,341 2,663 116,673
Wrigley (W M) Jr Co 134 12,462 829 77,097 1,884 175,212
---------- ---------- ----------
TOTAL FOOD & RELATED
- VALUE $1,112,426 $4,425,070 $9,596,561
- COST $ 823,388 $3,170,268 $6,841,834
FURNITURE & APPLIANCES
Percent of Net Assets 0.05% 0.07% 0.10%
Bassett Furniture Industries 25 $ 538 44 $ 946 175 $ 3,763
Champion Enterprises Inc 0 -- 0 -- 100 1,969
Ethan Allen Interiors Inc 200 9,000 352 15,840 701 31,545
Furniture Brands International 0 -- 0 -- 0 --
HON Industries Inc 206 4,893 751 17,836 1,299 30,851
Hussmann International Inc 32 452 385 5,438 898 12,684
Knoll Inc 0 -- 176 3,366 263 5,030
Leggett & Platt Inc 1,016 21,273 2,300 48,156 3,648 76,380
Maytag Corp 96 5,382 634 35,544 1,489 83,477
Miller (Herman) Inc 476 8,092 1,279 21,743 2,376 40,392
National Presto Industries Inc 0 -- 0 -- 102 3,774
Skyline Corp 20 585 39 1,141 195 5,704
Sunbeam Oster Co Inc 300 1,744 1,056 6,138 1,928 11,207
Whirlpool Corp 73 3,176 580 25,230 1,430 62,205
---------- ---------- ----------
TOTAL FURNITURE &
APPLIANCES
- VALUE $ 55,135 $ 181,378 $ 368,981
- COST $ 41,874 $ 179,463 $ 357,079
HEALTHCARE
Percent of Net Assets 0.18% 0.24% 0.33%
Apria Healthcare Group Inc 500 $ 4,469 528 $ 4,719 701 $ 6,265
Beverly Enterprises Inc 575 2,983 1,360 7,055 2,542 13,187
Cardinal Health Inc 721 52,047 2,282 164,732 4,773 344,551
First Health Group Corp 468 7,488 962 15,392 1,706 27,296
HCR Manor Care Inc 101 2,260 851 19,041 1,934 43,273
</TABLE>
<TABLE>
<CAPTION>
LifePath 2030 LifePath 2040
-------------------- ---------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Sysco Corp 4,843 $ 136,814 11,244 $ 317,642
Tootsie Roll Industries 390 17,940 975 44,850
Tricon Global Restaurants 2,212 137,143 5,172 320,663
Tyson Food Inc Class A 1,226 25,133 4,809 98,584
Unilever NV (Netherlands) 26,329 1,907,206 52,563 3,807,531
Universal Corp 887 24,115 1,912 51,982
Universal Foods Corp 873 19,806 1,449 32,874
UST Inc 2,665 78,784 6,301 186,272
Vlasic Foods International Inc 649 7,910 1,592 19,403
Weis Markets Inc 268 9,749 618 22,480
Wendy's International Inc 2,153 51,537 4,386 104,989
Whole Foods Market Inc 625 19,297 1,325 40,909
Winn-Dixie Stores Inc 2,490 109,093 5,026 220,201
Wrigley (W M) Jr Co 1,679 156,146 3,924 364,931
---------- -----------
TOTAL FOOD & RELATED
- VALUE $8,972,481 $19,164,751
- COST $6,445,669 $15,163,811
FURNITURE & APPLIANCES
Percent of Net Assets 0.12% 0.15%
Bassett Furniture Industries 107 $ 2,301 182 $ 3,913
Champion Enterprises Inc 0 -- 88 1,733
Ethan Allen Interiors Inc 714 32,130 1,413 63,584
Furniture Brands International 0 -- 88 1,881
HON Industries Inc 1,168 27,740 2,535 60,205
Hussmann International Inc 712 10,057 1,353 19,111
Knoll Inc 268 5,126 530 10,136
Leggett & Platt Inc 3,454 72,318 9,239 193,441
Maytag Corp 1,344 75,348 3,059 171,494
Miller (Herman) Inc 2,246 38,182 4,540 77,179
National Presto Industries Inc 72 2,664 0 --
Skyline Corp 70 2,047 117 3,422
Sunbeam Oster Co Inc 1,875 10,898 3,975 23,105
Whirlpool Corp 1,288 56,028 2,529 110,010
---------- -----------
TOTAL FURNITURE &
APPLIANCES
- VALUE $ 334,839 $ 739,214
- COST $ 334,628 $ 798,711
HEALTHCARE
Percent of Net Assets 0.40% 0.50%
Apria Healthcare Group Inc 714 $ 6,381 1,148 $ 10,260
Beverly Enterprises Inc 2,359 12,237 5,035 26,119
Cardinal Health Inc 4,284 309,250 10,977 792,401
First Health Group Corp 1,600 25,600 3,294 52,704
HCR Manor Care Inc 1,817 40,655 4,512 100,955
</TABLE>
41
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020
------------------ ------------------ --------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Healthsouth Corp 500 $ 5,813 3,260 $ 37,898 7,637 $ 88,780
Idexx Laboratories Inc 400 8,950 440 9,845 701 15,685
Lincare Holdings Inc 200 7,125 440 15,675 701 24,973
McKesson HBOC Inc 655 44,540 2,012 136,816 4,157 282,676
Mid Atlantic Medical Services 400 3,125 440 3,438 614 4,797
Morrison Health Care Inc 128 2,504 58 1,135 188 3,678
Novacare Inc 0 -- 0 -- 854 1,815
Oakley Inc 600 4,988 528 4,389 1,052 8,745
Oxford Health Plans Inc 500 9,469 880 16,665 1,665 31,531
PacifiCare Health Systems Inc Class A 112 7,378 62 4,084 402 26,482
PacifiCare Health Systems Inc Class B 174 12,572 260 18,785 549 39,665
St Jude Medical Inc 132 3,317 661 16,608 1,510 37,939
Total Renal Care Holdings Inc 0 -- 980 8,698 100 888
United Healthcare Corp 267 13,166 1,504 74,166 3,509 173,038
Universal Health Services Inc 200 8,125 352 14,300 701 28,478
Vencor Inc 500 938 616 1,155 1,315 2,466
Ventas Inc 500 4,031 792 6,386 1,490 12,013
-------- -------- ----------
TOTAL HEALTHCARE
- VALUE $205,288 $580,982 $1,218,221
- COST $222,601 $618,609 $1,140,083
HOSPITAL & MEDICAL SUPPLIES
Percent of Net Assets 0.30% 0.79% 1.18%
American Oncology Resources 0 $ -- 176 $ 1,760 0 $ --
Arrow International Inc 0 -- 88 2,162 0 --
Bard (C R) Inc 43 2,424 435 24,523 993 55,980
Bausch & Lomb Inc 46 2,774 461 27,804 1,025 61,820
Baxter International Inc 305 21,464 1,972 138,780 4,650 327,244
Becton Dickinson & Co 178 5,963 1,674 56,079 4,072 136,412
Biomet Inc 112 4,109 776 28,470 1,831 67,175
Boston Scientific Corp 412 10,918 2,561 67,867 6,347 168,196
Columbia/HCA Healthcare Corp 650 11,619 4,984 89,089 11,571 206,832
Dentsply International Inc 400 10,200 616 15,708 1,052 26,826
Guidant Corp 257 14,649 2,088 119,016 4,874 277,818
Health Management Associates Inc 1,262 16,327 2,595 33,573 4,264 55,166
Class A
Hillenbrand Industries Inc 300 12,563 528 22,110 789 33,039
Johnson & Johnson 1,303 111,243 8,915 761,117 21,566 1,841,197
Mallinckrodt Group Inc 77 2,382 559 17,294 1,318 40,776
Medpartners Inc 710 4,216 1,662 9,868 3,436 20,401
Medtronic Inc 861 60,808 3,899 275,367 8,889 627,786
Phycor Inc 300 1,631 704 3,828 1,446 7,863
Quorum Health Group Inc 50 463 584 5,402 1,064 9,842
Safeskin Corp 200 4,650 616 14,322 1,052 24,459
STERIS Corp 300 9,863 880 28,930 1,678 55,164
</TABLE>
<TABLE>
<CAPTION>
LifePath 2030 LifePath 2040
-------------------- --------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Healthsouth Corp 7,124 $ 82,817 14,005 $ 162,807
Idexx Laboratories Inc 536 11,993 883 19,757
Lincare Holdings Inc 714 25,436 1,700 60,562
McKesson HBOC Inc 3,653 248,403 8,479 576,571
Mid Atlantic Medical Services 446 3,484 1,148 8,969
Morrison Health Care Inc 118 2,308 228 4,460
Novacare Inc 634 1,347 0 --
Oakley Inc 714 5,935 1,060 8,811
Oxford Health Plans Inc 1,696 32,118 3,268 61,887
PacifiCare Health Systems Inc Class A 121 7,971 214 14,097
PacifiCare Health Systems Inc Class B 546 39,449 1,055 76,223
St Jude Medical Inc 1,424 35,778 2,825 70,977
Total Renal Care Holdings Inc 0 -- 88 781
United Healthcare Corp 3,217 158,637 6,712 330,985
Universal Health Services Inc 714 29,006 1,413 57,402
Vencor Inc 1,053 1,974 2,185 4,097
Ventas Inc 1,411 11,376 2,980 24,026
---------- ----------
TOTAL HEALTHCARE
- VALUE $1,092,155 $2,464,851
- COST $1,061,411 $2,454,934
HOSPITAL & MEDICAL SUPPLIES
Percent of Net Assets 1.42% 1.81%
American Oncology Resources 179 $ 1,790 353 $ 3,530
Arrow International Inc 0 -- 177 4,348
Bard (C R) Inc 987 55,642 1,951 109,987
Bausch & Lomb Inc 965 58,202 1,815 109,466
Baxter International Inc 4,066 286,144 9,543 671,588
Becton Dickinson & Co 3,490 116,915 8,335 279,222
Biomet Inc 1,647 60,424 3,780 138,678
Boston Scientific Corp 5,689 150,758 13,148 348,421
Columbia/HCA Healthcare Corp 10,797 192,995 22,144 395,823
Dentsply International Inc 1,071 27,311 2,296 58,547
Guidant Corp 4,284 244,187 10,051 572,906
Health Management Associates Inc 3,976 51,440 11,490 148,651
Class A
Hillenbrand Industries Inc 804 33,668 2,473 103,556
Johnson & Johnson 19,349 1,651,920 44,600 3,807,724
Mallinckrodt Group Inc 1,190 36,816 2,367 73,228
Medpartners Inc 3,528 20,948 6,944 41,230
Medtronic Inc 8,117 573,262 18,554 1,310,375
Phycor Inc 1,473 8,009 3,136 17,052
Quorum Health Group Inc 848 7,844 1,943 17,973
Safeskin Corp 1,071 24,901 2,208 51,336
STERIS Corp 1,607 52,830 3,268 107,435
</TABLE>
42
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ -------------------- -------------------- -------------------- -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Stryker Corp 448 $ 21,168 810 $ 38,273 1,387 $ 65,536 1,239 $ 58,543 3,886 $ 183,613
Sybron International Corp 500 12,281 1,244 30,556 1,941 47,676 2,589 63,592 5,299 130,156
Tenet Healthcare Corp 334 6,576 2,402 47,289 5,533 108,931 5,074 99,894 10,600 208,687
Thermo Cardiosystems Inc 150 1,416 220 2,076 263 2,482 268 2,529 398 3,756
Uniphase Corp 0 -- 440 38,775 0 -- 0 -- 88 7,755
Waters Corp 0 -- 352 32,758 701 65,237 625 58,164 0 --
-------- ---------- ---------- ---------- ----------
TOTAL HOSPITAL &
MEDICAL SUPPLIES
- VALUE $349,707 $1,932,796 $4,333,858 $3,938,728 $8,905,043
- COST $288,838 $1,472,858 $3,171,732 $2,899,055 $7,041,754
HOUSEHOLD PRODUCTS
Percent of Net Assets 0.24% 0.68% 1.08% 1.30% 1.68%
Alberto-Culver Co Class B 92 $ 2,208 455 $ 10,920 995 $ 23,880 972 $ 23,328 1,829 $ 43,896
Avon Products Inc 180 7,493 1,759 73,218 4,311 179,445 3,780 157,342 8,769 365,009
Colgate-Palmolive Co 384 32,592 2,008 170,429 4,769 404,769 4,191 355,710 9,708 823,966
Dial Corp 536 15,645 1,226 35,784 1,977 57,704 2,614 76,296 5,306 154,868
Estee Lauder Co Class A 200 17,363 176 15,279 351 30,471 625 54,258 1,237 107,386
Gillette Co 1,137 60,972 7,352 394,251 17,758 952,273 15,873 851,189 36,847 1,975,919
International Specialty
Products Inc 0 -- 276 2,432 363 3,199 268 2,362 618 5,446
Kimberly-Clark Corp 546 25,799 3,614 170,762 8,768 414,288 7,852 371,006 18,126 856,452
NCH Corp 0 -- 0 -- 109 5,505 79 3,990 0 --
Procter & Gamble Co 1,288 115,275 8,704 779,007 21,193 1,896,774 19,122 1,711,418 44,076 3,944,801
-------- ---------- ---------- ---------- ----------
TOTAL HOUSEHOLD
PRODUCTS
- VALUE $277,347 $1,652,082 $3,968,308 $3,606,899 $8,277,743
- COST $213,813 $1,087,728 $2,614,440 $2,417,761 $6,123,192
INSURANCE
Percent of Net Assets 0.96% 2.15% 3.17% 3.92% 4.54%
20th Century Industries 0 $ -- 1,244 $ 23,792 2,116 $ 40,469 1,964 $ 37,562 88 $ 1,683
Aegon NV ADR (Netherlands) 22 2,302 291 30,414 1,324 138,524 528 55,242 807 84,431
Aetna Inc 154 11,406 1,135 84,061 2,568 190,193 2,401 177,823 4,909 363,572
AFLAC Corp 1,592 70,247 3,127 137,979 5,138 226,714 4,798 211,711 10,381 458,061
Alleghany Corp 2 362 102 18,462 104 18,824 104 18,824 304 55,023
Allied Zurich PLC ADR 2,120 62,593 8,258 243,816 17,502 516,743 16,798 495,957 29,971 884,887
Allmerica Financial Corp 124 6,619 730 38,964 1,384 73,871 1,314 70,135 1,151 61,434
Allstate Corp 924 34,650 6,312 236,700 14,921 559,538 13,771 516,412 28,389 1,064,587
American Bankers
Insurance Gro 0 -- 352 16,896 614 29,472 536 25,728 1,413 67,823
American Financial
Group Inc 304 11,229 343 12,670 888 32,800 900 33,244 1,837 67,853
American General Corp 226 16,555 1,968 144,156 4,532 331,969 4,216 308,821 8,668 634,930
American International
Group Inc 1,232 140,370 8,150 928,590 19,766 2,252,089 17,850 2,033,783 40,730 4,640,673
American National
Insurance Co 100 7,525 88 6,622 263 19,791 268 20,167 530 39,883
Aon Corp 237 13,968 1,295 76,324 3,019 177,932 2,839 167,323 5,814 342,662
Argonaut Group Inc 0 -- 88 2,184 0 -- 179 4,441 265 6,575
Axa-UAP ADR (France) 2,275 151,287 7,608 505,931 15,497 1,030,551 14,778 982,736 29,460 1,959,089
</TABLE>
43
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ----------------- ------------------ ------------------ ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Berkshire Hathaway Inc Class A 0 $ -- 20 $142,200 40 $ 284,400 40 $ 284,399 80 $ 568,799
Berkshire Hathaway Inc Class B 9 21,411 3 7,137 21 49,959 4 9,516 19 45,201
Chubb Corp 195 11,651 1,204 71,939 2,963 177,039 2,820 168,494 5,642 337,109
CIGNA Corp 217 17,035 1,613 126,621 3,781 296,809 3,586 281,500 7,250 569,124
Cincinnati Financial Corp 120 4,208 1,218 42,706 3,030 106,239 2,805 98,350 5,715 200,381
CMAC Investment Corp 100 4,131 264 10,907 526 21,730 536 22,144 1,148 47,427
CNA Financial Corp 200 6,788 176 5,973 351 11,912 714 24,231 1,502 50,974
Conseco Inc 302 9,041 2,422 72,509 5,611 167,979 5,205 155,824 10,725 321,079
Equitable Co Inc 400 27,025 1,156 78,102 1,765 119,248 1,964 132,692 4,063 274,505
Everest Reinsurance
Holdings Inc 300 9,956 616 20,444 1,140 37,834 1,071 35,544 2,296 76,198
First American Financial Corp 0 -- 616 14,438 1,140 26,719 1,161 27,211 88 2,063
Foundation Health Systems 391 3,128 1,443 11,544 2,602 20,816 2,422 19,376 5,071 40,568
Fremont General Corporation 400 7,900 804 15,879 1,327 26,208 1,250 24,688 2,473 48,842
Hartford Financial Services
Group 192 10,380 1,807 97,691 4,200 227,063 3,906 211,167 8,000 432,499
Highlands Insurance Group 37 502 67 909 151 2,048 121 1,641 191 2,590
Horace Mann Educators Corp 300 7,031 616 14,438 1,140 26,719 1,161 27,211 2,385 55,897
HSB Group Inc 345 12,765 370 13,690 756 27,972 746 27,602 1,528 56,535
Humana Inc 177 3,098 1,250 21,875 2,972 52,010 2,757 48,248 5,345 93,537
Jefferson-Pilot Corp 140 9,494 818 55,471 1,895 128,505 1,792 121,520 3,584 243,039
Leucadia National Corp 200 5,963 528 15,741 1,052 31,363 1,071 31,929 2,208 65,825
Lincoln National Corp 124 11,741 796 75,371 1,844 174,604 1,660 157,180 3,461 327,712
Loews Corp 135 10,555 933 72,949 2,047 160,050 1,897 148,321 3,933 307,510
Marsh & McLennan
Companies Inc 220 15,579 1,927 136,456 4,630 327,862 4,203 297,624 8,700 616,068
MBIA Inc 94 5,787 824 50,728 1,832 112,783 1,700 104,656 3,310 203,771
Mercury General Corp 200 6,975 352 12,276 701 24,447 714 24,901 1,325 46,209
Mony Group Inc 0 -- 0 -- 0 -- 0 -- 88 2,228
Ohio Casualty Corp 200 8,075 352 14,212 701 28,303 714 28,828 1,502 60,642
Old Republic
International Corp 625 11,758 1,706 32,094 3,124 58,770 2,924 55,008 6,138 115,470
PMI Group Inc 100 4,313 352 15,180 614 26,479 536 23,115 1,148 49,508
Progressive Corp Ohio 75 9,638 525 67,463 1,344 172,704 1,238 159,082 2,541 326,517
Protection One Inc 0 -- 100 813 100 813 0 -- 0 --
Protective Life Corp 300 10,350 792 27,324 1,402 48,369 1,339 46,196 2,826 97,496
Provident Co Inc 174 5,699 1,077 35,272 2,417 79,157 2,282 74,736 4,611 151,009
Providian Financial Corp 177 18,076 867 88,542 2,218 226,513 2,019 206,189 4,830 493,213
Reinsurance Group Of America 0 -- 352 22,682 0 -- 0 -- 0 --
Reliance Group Holdings 200 2,063 892 9,199 1,678 17,304 1,518 15,654 3,356 34,609
Reliastar Financial Corp 500 22,688 1,156 52,454 1,765 80,087 1,696 76,956 4,681 212,399
SAFECO Corp 156 6,269 1,143 45,934 2,507 100,750 2,378 95,566 4,768 191,613
St Paul Co 264 8,547 1,820 58,923 4,268 138,177 3,880 125,615 8,118 262,819
TIG Holdings Inc 200 3,200 616 9,856 1,139 18,224 1,071 17,136 2,385 38,160
Tokio Marine & Fire
Insurance Co 3,718 199,377 14,760 791,504 34,186 1,833,224 33,869 1,816,224 67,208 3,604,028
ADR (Japan)
Torchmark Corp 142 4,722 1,132 37,639 2,506 83,325 2,403 79,900 4,694 156,075
Transamerica Corp 132 9,578 1,029 74,667 2,308 167,474 2,078 150,784 4,309 312,671
</TABLE>
44
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ----------------- ------------------ ------------------ -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Transatlantic Holdings Inc 126 $ 9,411 220 $ 16,431 466 $ 34,804 437 $ 32,638 936 $ 69,907
Travelers Property
Casualty 100 3,794 88 3,339 263 9,978 268 10,167 530 20,107
Trigon Healthcare Inc 0 -- 528 18,513 0 -- 0 -- 88 3,086
UICI 200 4,563 528 12,144 877 20,171 804 18,492 1,943 44,689
Unitrin Inc 200 13,075 352 23,012 701 45,828 714 46,678 1,413 92,374
UNUM Corp 152 6,802 1,091 48,822 2,474 110,711 2,276 101,851 4,609 206,252
Wellpoint Health Networks 100 7,888 440 34,705 351 27,685 357 28,158 795 62,705
---------- ---------- ----------- ----------- -----------
TOTAL INSURANCE
- VALUE $1,121,143 $5,236,279 $11,610,648 $10,854,851 $22,374,205
- COST $ 861,280 $3,863,638 $ 8,163,591 $ 7,742,387 $17,121,744
LODGING
Percent of Net Assets 0.03% 0.07% 0.09% 0.12% 0.15%
Choice Hotels
International Inc 59 $ 804 444 $ 6,050 969 $ 13,203 720 $ 9,810 1,075 $ 14,647
Extended Stay America Inc 400 3,500 880 7,700 1,665 14,569 1,518 13,283 3,445 30,144
Hilton Hotels Corp 264 4,175 1,761 27,846 4,192 66,286 3,563 56,340 8,603 136,034
Homestead Village
Property Inc 75 258 76 261 88 303 101 347 166 571
Marriott International 306 11,016 1,662 59,832 4,035 145,260 3,616 130,175 8,322 299,591
Park Place Entertainment
Corp 364 2,730 2,013 15,098 4,361 32,708 3,584 26,880 8,493 63,697
Promus Hotel Corp 441 15,518 1,084 38,143 1,665 58,587 2,222 78,187 4,456 156,795
Sodexho Marriott
Services Inc 44 1,029 221 5,166 515 12,038 441 10,308 1,181 27,606
Sunburst Hospitality Corp 19 91 147 707 322 1,550 240 1,155 358 1,723
---------- ---------- ----------- ----------- -----------
TOTAL LODGING
- VALUE $ 39,121 $ 160,803 $ 344,504 $ 326,485 $ 730,808
- COST $ 42,566 $ 152,943 $ 295,324 $ 303,452 $ 713,518
MACHINERY
Percent of Net Assets 0.21% 0.37% 0.57% 0.71% 0.80%
AGCO Corp 300 $ 1,969 792 $ 5,198 1,490 $ 9,778 1,428 $ 9,371 3,180 $ 20,869
AVX Corp 300 4,106 364 4,982 626 8,568 536 7,337 1,148 15,713
Black & Decker Corp 116 5,655 716 34,905 1,722 83,948 1,544 75,270 3,229 157,413
Case Corp 43 839 579 11,291 1,368 26,676 1,301 25,370 2,488 48,516
Caterpillar Inc 420 19,136 2,759 125,707 6,630 302,079 6,118 278,750 12,494 569,257
Cummins Engine Co Inc 25 1,025 288 11,808 731 29,971 619 25,379 1,301 53,340
Deere & Co 289 9,447 2,044 66,813 4,645 151,833 4,222 138,006 8,210 268,363
Federal Mogul Corp 396 19,478 616 30,300 1,011 49,729 1,337 65,764 2,720 133,789
Flowserve Corp 200 3,313 528 8,745 1,052 17,424 982 16,264 2,031 33,638
Harsco Corp 338 9,485 634 17,792 1,182 33,170 1,212 34,012 2,491 69,903
Ingersoll-Rand Co 172 8,170 1,330 63,175 3,162 150,195 2,827 134,282 5,592 265,619
Jacobs Engineering Group 0 -- 0 -- 327 12,937 0 -- 0 --
Kubota Corp ADR (Japan) 1,434 69,191 5,943 286,750 13,676 659,867 13,585 655,475 26,860 1,295,994
MagneTek Inc 0 -- 0 -- 322 3,502 0 -- 0 --
Makita Corp ADR (Japan) 1,420 14,023 5,593 55,231 12,909 127,476 12,897 127,358 25,633 253,125
McDermott
International Inc 46 917 436 8,693 1,073 21,393 1,042 20,775 1,958 39,038
</TABLE>
45
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- -------------------- -------------------- -------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Milacron Inc 51 $ 908 337 $ 6,003 687 $ 12,237 662 $ 11,792 1,255 $ 22,355
Nordson Corp 214 12,733 141 8,390 257 15,292 186 11,067 340 20,230
Pall Corp 113 2,394 942 19,959 2,260 47,884 2,113 44,769 4,078 86,402
Parker Hannifin Corp 138 5,123 837 31,074 1,978 73,433 1,828 67,865 3,624 134,540
Pentair Co 200 7,575 440 16,665 856 32,421 809 30,641 1,766 66,886
Presstek Inc 200 1,650 352 2,904 351 2,896 357 2,945 530 4,373
SPX Corp 33 1,885 143 8,169 455 25,992 317 18,109 640 36,560
Tecumseh Products Co
Class A 241 11,869 167 8,225 302 14,874 222 10,934 381 18,764
Teleflex Inc 350 12,447 440 15,648 796 28,308 793 28,201 1,678 59,673
Thermo Electron Corp 169 2,334 1,216 16,796 2,961 40,899 2,676 36,962 5,691 78,606
UCAR International Inc 200 3,175 528 8,382 964 15,304 893 14,176 1,943 30,845
Weatherford International 480 8,160 1,222 20,774 2,120 36,040 2,013 34,221 4,067 69,138
York International Corp 302 10,948 458 16,603 1,104 40,020 1,084 39,295 2,283 82,758
-------- ---------- ---------- ---------- ----------
TOTAL MACHINERY
- VALUE $247,955 $ 910,982 $2,074,146 $1,964,390 $3,935,707
- COST $320,371 $1,065,623 $2,512,503 $2,443,462 $4,954,063
MANUFACTURING
Percent of Net Assets 0.06% 0.14% 0.22% 0.26% 0.34%
Carlisle Corp 200 $ 8,275 352 $ 14,564 701 $ 29,004 714 $ 29,542 1,413 $ 58,462
Tyco International Ltd 764 56,870 4,300 320,081 10,233 761,719 9,307 692,789 21,371 1,590,803
West Teleservices 0 -- 0 -- 0 -- 0 -- 177 1,748
-------- ---------- ---------- ---------- ----------
TOTAL MANUFACTURING
- VALUE $ 65,145 $ 334,645 $ 790,723 $ 722,331 $1,651,013
- COST $ 36,042 $ 205,150 $ 443,510 $ 436,847 $1,019,826
METAL FABRICATORS
Percent of Net Assets 0.14% 0.31% 0.47% 0.59% 0.66%
Alcan Aluminum Ltd 278 $ 6,747 1,890 $ 45,951 4,330 $ 105,273 3,944 $ 95,889 7,602 $ 184,823
Allegheny Teledyne Inc 183 3,774 1,508 31,103 3,583 73,899 3,323 68,537 6,658 137,320
Armco Inc 111 555 953 4,765 1,943 9,715 1,647 8,235 3,846 19,230
Barrick Gold Corp 423 7,482 2,838 50,197 6,737 119,161 6,287 111,201 12,524 221,517
Battle Mountain Gold Co 247 834 1,807 6,099 4,136 13,959 3,980 13,433 7,716 26,042
Bethlehem Steel Corp 17 150 843 7,429 2,356 20,762 2,192 19,317 4,179 36,827
British Steel PLC
ADR (UK) 618 12,167 2,172 42,761 4,442 87,452 4,020 79,144 8,673 170,749
Crane Co 120 3,293 607 16,655 1,317 36,135 1,216 33,364 2,322 63,709
Engelhard Corp 100 1,781 1,056 18,810 2,606 46,419 2,457 43,765 4,731 84,270
Freeport McMoRan Inc 116 1,095 997 9,409 2,948 27,822 2,567 24,226 5,971 56,350
Getchell Gold Corp 24 623 228 5,914 195 5,058 409 10,608 571 14,810
Howmet International Inc 0 -- 176 2,838 351 5,660 268 4,322 795 12,819
Kaydon Corp 0 -- 0 -- 438 13,359 0 -- 0 --
Laboratory Corp of
America Holdings 660 1,196 367 665 914 1,657 610 1,106 1,181 2,141
Mitsui & Co Ltd ADR
(Japan) 660 71,610 2,475 268,538 5,822 631,687 5,734 622,138 11,395 1,236,357
Nucor Corp 121 5,392 699 31,149 1,646 73,350 1,455 64,838 2,932 130,656
Oregon Steel
Mills Inc 0 -- 0 -- 262 2,505 178 1,702 0 --
</TABLE>
46
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- -------------------- ------------------- -------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Phelps Dodge Corp 66 $ 3,201 420 $ 20,370 1,070 $ 51,895 1,028 $ 49,858 1,972 $ 95,641
Placer Dome Inc 263 2,877 1,964 21,481 4,539 49,645 4,233 46,298 8,593 93,985
Precision Castparts Corp 100 3,713 264 9,801 526 19,528 547 20,307 1,060 39,353
Reynolds Metals Co 49 2,095 576 24,624 1,274 54,464 1,191 50,915 2,424 103,625
Ryerson Tull Inc 207 3,778 381 6,953 1,198 21,864 1,132 20,659 2,171 39,621
SKF AB ADR (Sweden) 721 10,094 2,631 36,834 5,177 72,478 5,064 70,896 10,261 143,653
Steel Dynamics Inc 0 -- 264 4,158 526 8,285 357 5,623 883 13,907
Timken Co 42 743 470 8,313 1,120 19,810 1,073 18,979 2,049 36,242
USX--U.S. Steel Group 126 3,189 655 16,580 1,629 41,234 1,489 37,690 2,787 70,545
WMC Ltd ADR (Japan) 1,130 14,054 3,937 48,966 7,849 97,622 7,695 95,707 15,318 190,517
Worthington Industries
Inc 77 977 752 9,541 1,745 22,140 1,624 20,604 3,192 40,498
-------- ---------- ---------- ---------- ----------
TOTAL METAL
FABRICATORS
- VALUE $161,420 $ 749,904 $1,732,838 $1,639,361 $3,265,207
- COST $232,909 $1,064,071 $2,443,256 $2,320,924 $4,588,495
OFFICE EQUIPMENT &
SUPPLIES
Percent of Net Assets 0.04% 0.05% 0.08% 0.10% 0.11%
Ingram Micro Inc Class A 100 $ 2,200 176 $ 3,872 351 $ 7,722 357 $ 7,854 618 $ 13,596
Ricoh Co Ltd ADR (Japan) 677 29,899 2,699 119,197 6,359 280,836 5,625 248,419 12,383 546,876
Standard Register Co 301 8,710 0 -- 379 10,967 279 8,074 0 --
-------- ---------- ---------- ---------- ----------
TOTAL OFFICE
EQUIPMENT & SUPPLIES
- VALUE $ 40,809 $ 123,069 $ 299,525 $ 264,347 $ 560,472
- COST $ 58,427 $ 184,789 $ 430,550 $ 377,770 $ 788,206
PHARMACEUTICALS
Percent of Net Assets 1.58% 3.80% 5.73% 7.01% 8.76%
Abbott Laboratories 1,503 $ 69,796 9,954 $ 462,238 24,316 $1,129,174 21,869 $1,015,541 50,437 $2,342,167
Allergan Inc 55 4,483 479 39,039 1,169 95,274 1,093 89,079 2,178 177,506
ALZA Corp 87 4,562 564 29,575 1,418 74,356 1,251 65,599 2,961 155,266
American Home Products
Corp 1,305 77,648 8,653 514,853 21,068 1,253,546 19,080 1,135,259 43,831 2,607,943
Amgen Inc 237 29,595 1,579 197,178 4,045 505,119 3,606 450,298 8,458 1,056,192
Astra AB ADR Series B
(Sweden) 4,498 87,991 16,204 316,991 32,190 629,717 31,444 615,122 62,718 1,226,920
Bergen Brunswig Corp
Class A 650 15,884 1,411 34,481 2,004 48,973 2,634 64,368 5,211 127,343
Bristol-Myers Squibb Co 939 118,254 6,569 827,282 15,867 1,998,250 14,280 1,798,386 32,966 4,151,655
Centocor Inc 446 18,537 739 30,715 1,311 54,488 1,220 50,706 3,551 147,587
Covance Inc 90 2,481 511 14,084 902 24,861 783 21,581 1,454 40,076
Dura Pharmaceuticals Inc 0 -- 440 6,188 877 12,333 714 10,041 1,502 21,122
Forest Labs Inc Class A 464 22,939 739 36,534 1,255 62,044 1,225 60,561 3,904 193,003
Glaxo Holdings PLC ADR
(UK) 3,560 228,062 12,692 813,080 25,331 1,622,767 24,736 1,584,649 49,292 3,157,768
ICN Pharmaceuticals Inc 400 8,750 1,073 23,472 1,907 41,716 1,839 40,228 3,763 82,315
Immunex Corp 100 14,100 264 37,356 438 61,977 446 63,109 883 124,944
Interneuron
Pharmaceuticals Co 0 -- 352 1,430 0 -- 536 2,178 795 3,230
IVAX Corp 1,230 18,143 1,091 16,092 2,036 30,031 1,753 25,857 3,529 52,053
Lilly (Eli) & Co 1,104 104,534 7,291 690,366 17,648 1,671,045 15,792 1,495,304 36,520 3,457,987
</TABLE>
47
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ------------------ -------------------- -------------------- ---------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued)
Marshall & Ilsley
Corp 558 $ 31,248 1,279 $ 71,624 2,031 $ 113,736 1,860 $ 104,160 5,582 $ 312,591
Merck & Co Inc 2,266 185,245 15,542 1,270,558 38,090 3,113,858 34,250 2,799,937 78,972 6,455,960
Millipore Corp 42 1,171 351 9,784 788 21,966 686 19,122 1,718 47,889
Mylan Laboratories 703 19,201 1,482 40,477 2,348 64,130 2,256 61,617 6,229 170,129
Novo Nordisk A/S ADR
(Denmark) 2,492 142,355 8,861 506,184 17,736 1,013,169 17,364 991,918 34,507 1,971,211
Omnicare Inc 400 9,575 1,244 29,778 1,765 42,250 2,143 51,298 4,328 103,601
Perrigo Co 812 6,800 484 4,054 1,097 9,187 752 6,298 1,484 12,429
Pfizer Inc 1,335 176,136 8,444 1,114,079 20,705 2,731,766 18,653 2,461,029 43,110 5,687,825
Pharmacia and Upjohn
Inc 517 28,177 3,860 210,370 9,119 496,986 8,449 460,470 17,453 951,188
PharMerica Inc 35 197 297 1,671 837 4,708 707 3,977 1,366 7,684
Rexall Sundown Inc 100 1,431 628 8,988 1,064 15,229 893 12,781 1,943 27,809
Schering-Plough Corp 1,481 82,842 9,718 543,600 23,556 1,317,664 21,163 1,183,804 48,806 2,730,085
Schweitzer-Mauduit
International Inc 20 235 81 952 188 2,209 157 1,845 310 3,643
Sepracor Inc 0 -- 352 43,912 0 -- 536 66,866 0 --
SmithKline Beecham
PLC ADR (UK) 2,145 152,562 7,895 561,531 15,771 1,121,712 15,418 1,096,604 30,717 2,184,746
SouthTrust Corp 906 36,297 1,922 77,000 2,997 120,067 2,839 113,737 7,774 311,445
ThermoLase Corp 0 -- 88 286 0 -- 0 -- 265 861
Warner Lambert Co 757 52,280 5,436 375,424 13,255 915,423 11,850 818,390 27,333 1,887,684
Watson Pharmaceutical
Inc 500 24,156 980 47,346 1,590 76,817 1,429 69,039 3,975 192,041
Xoma Ltd 188 658 0 -- 169 592 172 602 0 --
Zeneca Group PLC
ADR (UK) 1,704 69,971 6,131 251,754 12,197 500,839 11,993 492,462 23,804 977,451
---------- ---------- ----------- ----------- -----------
TOTAL
PHARMACEUTICALS
- VALUE $1,846,296 $9,260,326 $20,997,979 $19,403,822 $43,161,349
- COST $1,112,569 $5,055,394 $10,927,873 $10,320,396 $25,275,069
PUBLISHING
Percent of Net
Assets 0.40% 0.66% 0.91% 1.11% 1.33%
American Greetings
Corp Class A 123 $ 2,914 580 $ 13,739 1,311 $ 31,054 1,177 $ 27,880 2,455 $ 58,152
Belo (A H) Corp 412 7,468 1,050 19,031 1,878 34,039 1,775 32,172 3,692 66,917
Central Newspapers
Class A 200 7,000 176 6,160 351 12,285 893 31,255 1,943 68,004
Chris-Craft
Industries Inc 119 5,043 236 10,000 444 18,814 307 13,009 205 8,687
Comcast Corp Class A 290 20,572 2,484 176,209 5,870 416,403 5,297 375,755 12,340 875,368
Donnelley (R R)
& Sons Co 139 4,761 1,045 35,791 2,523 86,413 2,313 79,220 4,750 162,686
Dow Jones & Co Inc 94 4,418 748 35,156 1,700 79,900 1,589 74,683 3,115 146,404
E.W. Scripps Co 200 8,200 264 10,824 614 25,174 625 25,625 1,237 50,717
Elsevier NV ADR
(Netherlands) 3,727 120,195 13,661 440,566 27,206 877,394 26,521 855,301 52,906 1,706,218
Ennis Business
Forms Inc 0 -- 0 -- 216 1,931 0 -- 0 --
Gannett Co Inc 408 25,908 1,880 119,380 4,471 283,909 3,996 253,745 9,169 582,231
Gibson Greetings Inc 0 -- 0 -- 214 1,772 0 -- 0 --
Golden Books Family
Entertainment Inc. 234 110 0 -- 274 129 208 98 0 --
Harland (John H) Co 55 739 218 2,929 543 7,297 550 7,391 897 12,053
Harte-Hanks
Communications Inc 200 5,175 528 13,662 1,052 27,221 982 25,409 2,120 54,854
Houghton Mifflin Co 304 13,072 211 9,073 403 17,329 277 11,911 786 33,798
Interpublic Group
Co Inc 83 6,209 874 65,386 2,135 159,725 1,978 147,978 4,640 347,129
Knight-Ridder Inc 124 6,223 662 33,224 1,394 69,961 1,371 68,807 2,588 129,884
</TABLE>
48
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ------------------ -------------------- -------------------- -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Lee Enterprises Inc 498 $ 13,757 0 $ -- 621 $ 17,155 455 $ 12,569 0 $ --
Liberty Media Group
Class A 1,853 99,829 3,812 205,372 6,105 328,907 5,666 305,255 12,494 673,113
Marvel Entertainment
Group Inc 0 -- 200 30 1,400 210 200 30 600 90
McGraw-Hill Inc 156 17,072 800 87,550 1,830 200,271 1,627 178,054 3,395 371,539
Media General Inc
Class A 280 14,000 194 9,700 359 17,950 259 12,950 503 25,150
Meredith Corp 82 2,768 404 13,635 921 31,084 808 27,270 1,701 57,408
Moore Corp Ltd 44 462 738 7,749 1,538 16,149 1,481 15,550 3,019 31,699
New York Times Co
Class A 162 5,022 1,463 45,353 3,427 106,237 3,174 98,394 6,411 198,740
News Corporation Ltd 874 24,800 3,280 93,070 6,604 187,389 6,325 179,471 12,875 365,327
Primedia Inc 0 -- 276 3,674 351 4,673 268 3,568 795 10,583
Readers Digest
Association Class A 400 13,600 1,156 39,304 2,028 68,952 1,875 63,750 3,798 129,131
Readers Digest
Association Class B 200 6,463 264 8,531 263 8,498 268 8,660 530 17,126
Scholastic Inc 200 9,850 176 8,668 175 8,619 179 8,816 353 17,385
Times Mirror Co
Class A 117 6,530 524 29,246 1,284 71,663 1,149 64,129 2,781 155,214
Washington Post
Co Class B 27 14,847 88 48,389 158 86,880 119 65,435 287 157,813
Workflow
Management Inc 0 -- 107 756 223 1,575 192 1,356 429 3,030
Ziff Davis Inc 0 -- 352 5,918 614 10,323 625 10,508 1,413 23,756
-------- ---------- ---------- ---------- ----------
TOTAL PUBLISHING
- VALUE $467,007 $1,598,075 $3,317,285 $3,086,004 $6,540,206
- COST $349,016 $1,173,497 $2,421,277 $2,236,767 $4,831,953
REAL ESTATE
Percent of Net Assets 0.23% 0.29% 0.31% 0.42% 0.48%
AMB Property Corp REIT 0 $ -- 980 $ 20,580 363 $ 7,623 268 $ 5,628 707 $ 14,847
Apartment Investment
& Management 0 -- 616 24,101 1,052 41,160 1,071 41,903 88 3,443
Co Class A REIT
Archstone Communities
Trust REIT 600 11,738 1,156 22,614 1,853 36,249 2,768 54,149 5,741 112,307
Arden Realty Group
Inc REIT 200 4,675 892 20,851 1,502 35,109 1,339 31,299 2,826 66,057
Boston Properties
Inc REIT 200 6,463 528 17,061 1,052 33,993 1,071 34,607 2,120 68,502
Camden Property
Trust REIT 0 -- 528 12,936 0 -- 0 -- 88 2,156
CarrAmercia Realty
Corp REIT 300 6,450 440 9,460 1,402 30,143 1,339 28,789 2,826 60,758
Castle & Cooke Inc 215 3,333 120 1,860 294 4,557 198 3,069 301 4,666
Catellus Development
Corp 300 4,331 1,068 15,419 1,941 28,023 1,875 27,070 3,798 54,833
Chicago Title Corp 106 3,717 181 6,346 361 12,658 725 25,420 717 25,140
Cornerstone Properties
Inc REIT 400 6,050 1,420 21,478 2,554 38,629 2,500 37,813 5,123 77,484
Crestline Capital
Corp REIT 100 1,275 185 2,359 298 3,800 428 5,457 892 11,373
Echelon International
Corp 68 1,411 47 975 84 1,743 62 1,287 57 1,183
Equity Office Properties
Trust REIT 1,200 30,900 2,971 76,503 4,815 123,986 5,254 135,290 10,835 279,000
Equity Residential
Properties Trust 500 20,500 1,332 54,612 2,291 93,931 2,232 91,512 4,593 188,312
REIT
Federal Realty Investment
Trust 0 -- 0 -- 0 -- 0 -- 353 7,788
Fel Cor Lodging Trust
Inc REIT 300 7,088 892 21,074 1,590 37,564 1,429 33,760 3,003 70,945
Franchise Finance
Corp REIT 0 -- 88 1,936 0 -- 0 -- 265 5,830
General Growth Properties
Inc 0 -- 0 -- 0 -- 0 -- 88 2,970
Health Care Property
Investors Inc 300 8,813 264 7,755 351 10,311 446 13,101 618 18,154
REIT
Hospitalities Properties
Trust 0 -- 0 -- 0 -- 0 -- 88 2,266
</TABLE>
49
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ------------------ -------------------- -------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Host Marriott Corp 1,087 $ 11,753 2,108 $ 22,793 3,339 $ 36,103 4,658 $ 50,365 9,696 $ 104,837
HRPT Properties
Trust REIT 700 9,581 1,596 21,845 3,519 48,166 3,393 46,442 6,889 94,292
Kimco Realty Corp REIT 300 11,381 484 18,362 745 28,263 1,250 47,422 2,473 93,818
Liberty Property
Trust REIT 0 -- 892 19,513 100 2,188 0 -- 88 1,925
Mack-Cali Realty
Corp REIT 300 8,681 792 22,919 1,402 40,570 1,429 41,352 2,915 84,352
MAXXAM Inc 0 -- 0 -- 112 6,552 0 -- 0 --
Meditrust Corp REIT 602 7,375 1,226 15,018 2,686 32,903 2,329 28,530 5,401 66,161
New Plan Excel Realty
Trust REIT 400 8,300 792 16,434 1,490 30,918 1,429 29,652 2,915 60,485
Patriot American
Hospitality Inc REIT 751 4,084 1,911 10,391 3,424 18,618 3,187 17,329 6,791 36,926
Post Properties Inc REIT 0 -- 440 15,703 0 -- 0 -- 88 3,141
Prison Realty Corp REIT 262 5,224 924 18,422 1,687 33,635 1,640 32,698 3,400 67,787
Public Storage Inc REIT 400 10,200 892 22,746 1,327 33,839 1,964 50,082 4,063 103,606
Simon Property Group
Inc REIT 400 10,175 1,156 29,406 2,028 51,587 1,875 47,695 3,975 101,113
United Dominion Realty
Trust Inc Reit 400 3,950 1,508 14,892 2,730 26,959 2,589 25,566 5,388 53,206
Vornado Operating Inc 20 138 44 303 90 619 80 550 159 1,093
Vornado Realty Trust
REIT 400 13,750 880 30,250 1,678 57,681 1,607 55,241 3,268 112,337
Weingarten Realty
Investors REIT 200 8,388 176 7,381 351 14,720 357 14,972 795 33,340
Westfield America
Inc REIT 0 -- 176 3,102 351 6,186 268 4,724 707 12,461
Worldwide Inc REIT 1,064 32,984 2,182 67,642 3,490 108,190 3,297 102,207 8,793 272,582
-------- -------- ---------- ---------- ----------
TOTAL REAL ESTATE
- VALUE $262,708 $695,042 $1,117,176 $1,164,981 $2,381,476
- COST $308,669 $816,084 $1,354,409 $1,456,991 $2,995,001
RETAIL & RELATED
Percent of Net Assets 1.10% 2.43% 3.71% 4.50% 5.50%
Abercrombie & Fitch Co 6 $ 456 642 $ 48,792 1,289 $ 97,964 1,217 $ 92,492 188 $ 14,288
Amazon.com Inc 300 38,438 528 67,650 789 101,091 804 103,013 1,855 237,671
Ann Taylor Stores Inc 247 9,340 172 6,504 308 11,646 226 8,546 209 7,903
AutoZone Inc 226 7,910 1,101 38,535 2,721 95,235 2,613 91,455 5,173 181,054
Barnes & Noble 400 11,825 616 18,211 1,227 36,273 1,161 34,322 2,473 73,107
Bed Bath & Beyond Inc 500 14,719 1,420 41,801 2,379 70,032 2,232 65,705 4,593 135,205
Benetton SpA ADR (Italy) 2,207 72,003 8,062 263,023 16,032 523,044 15,716 512,733 31,276 1,020,378
Best Buy Co Inc 500 46,375 880 81,620 1,402 130,036 1,339 124,192 4,063 376,842
BJ's Wholesale Club Inc 365 15,900 440 19,168 436 18,993 328 14,289 88 3,834
Borders Group Inc 300 4,144 980 13,536 1,765 24,379 1,696 23,426 3,445 47,584
CDW Computer Centers
Inc 0 -- 88 6,127 175 12,184 179 12,463 353 24,578
Charming Shoppes Inc 59 199 0 -- 2,005 6,767 1,446 4,880 2,971 10,027
Circuit City Stores Inc 127 6,890 744 40,362 1,848 100,254 1,663 90,218 3,275 177,668
Coles Myer Ltd ADR
(Australia) 1,114 47,206 3,932 166,619 7,865 333,279 7,659 324,549 15,449 654,650
CompUSA Inc 400 4,200 1,332 13,986 2,291 24,056 2,143 22,502 4,416 46,368
Consolidated Stores Corp 58 1,461 828 20,855 1,939 48,839 1,765 44,456 3,602 90,724
Corporate Express Inc 550 2,956 1,200 6,450 2,247 12,078 2,009 10,798 4,416 23,736
Costco Co Inc 285 22,889 1,676 134,604 3,943 316,672 3,559 285,831 7,376 592,384
CVS Corp 314 16,642 2,651 140,503 6,283 $ 332,999 5,558 294,573 13,020 690,059
Dayton-Hudson Corp 373 23,336 2,898 181,306 7,111 444,882 6,391 399,836 14,755 923,109
</TABLE>
50
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
-------------------- ----------------- ------------------ ------------------ ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Department 56 Inc 200 $ 6,638 176 $ 5,841 263 $ 8,728 179 $ 5,941 530 $ 17,589
Dillards Inc Class A 118 2,935 898 22,338 2,035 50,621 1,858 46,218 3,795 94,400
Dollar General Corp 473 14,160 1,121 33,560 2,952 88,376 2,605 77,987 6,352 190,162
Dollar Tree Stores Inc 200 8,000 484 19,360 920 36,800 937 37,480 1,943 77,719
Eastman Kodak Co 343 22,702 2,682 177,515 6,176 408,774 5,566 368,399 11,026 729,782
Enesco Group Inc 220 3,644 150 2,484 262 4,339 191 3,163 186 3,081
Ensco International Inc 600 5,325 1,948 17,289 3,519 31,231 3,393 30,113 6,889 61,139
Family Dollar Stores Inc 660 13,200 1,807 36,140 3,317 66,340 3,107 62,140 6,433 128,659
Federated Department
Stores Inc 179 6,813 1,563 59,492 3,836 146,008 3,452 131,391 7,181 273,326
Fingerhut Co 405 9,948 352 8,646 626 15,376 454 11,151 247 6,067
Footstar Inc 46 1,173 216 5,508 457 11,654 341 8,695 578 14,739
Fred Myer Inc 180 11,565 1,230 79,028 2,800 179,900 2,580 165,764 5,265 338,275
Gap Inc 612 39,589 3,832 247,883 9,284 600,559 8,364 541,046 19,240 1,244,587
Global DirectMail Corp 200 3,288 176 2,893 263 4,323 179 2,942 353 5,802
Hancock Fabrics Inc 0 -- 0 -- 300 2,081 0 -- 0 --
Harcourt General Inc 79 3,619 557 25,518 1,294 59,281 1,196 54,792 2,328 106,650
Heilig Meyers Co 524 3,406 361 2,347 731 4,752 486 3,159 1,148 7,462
Home Depot Inc 1,486 88,695 9,912 591,622 23,977 1,431,127 21,397 1,277,133 49,601 2,960,559
Homebase Inc 365 1,893 0 -- 436 2,262 328 1,702 0 --
Ito Yokado Co Ltd ADR
(Japan) 1,720 101,909 6,410 379,793 14,810 877,493 14,712 871,685 29,104 1,724,411
Jones Apparel Group Inc 300 8,381 1,068 29,837 1,853 51,768 1,786 49,896 3,621 101,161
Jostens Inc 77 1,805 265 6,211 690 16,172 572 13,406 1,368 32,062
K Mart Corp 584 10,220 3,762 65,835 8,852 154,910 8,327 145,722 16,901 295,767
Kohls Corp 547 37,743 975 67,275 2,523 174,087 2,346 161,873 5,331 367,838
Limited Inc 197 6,994 1,764 62,622 4,092 145,266 3,797 134,793 7,821 277,644
Longs Drug Stores Corp 66 2,388 324 11,725 679 24,571 666 24,101 1,296 46,899
Lowe's Co Inc 414 24,555 2,690 159,551 6,333 375,626 5,889 349,290 12,043 714,299
May Department Stores Co 214 12,680 1,773 105,050 4,165 246,776 3,854 228,348 7,897 467,896
Michaels Stores Inc 0 -- 0 -- 0 -- 0 -- 177 3,031
Micro Warehouse Inc 300 5,925 264 5,214 526 10,389 357 7,051 618 12,206
Midas Inc 10 316 128 4,048 299 9,456 237 7,495 450 14,231
Neiman Marcus Group Inc 100 2,588 264 6,831 526 13,610 536 13,869 1,060 27,428
Newell Co 194 8,245 1,055 44,838 2,614 111,095 2,306 98,005 5,455 231,837
Nordstrom Inc 224 9,016 1,080 43,470 2,701 108,715 2,411 97,043 5,112 205,757
Office Depot Inc 1,338 47,750 2,950 105,278 4,839 172,692 4,453 158,915 11,870 423,610
Officemax Inc 700 5,425 1,816 14,074 3,343 25,908 3,170 24,568 6,492 50,313
Payless ShoeSource Inc 217 11,908 362 19,865 1,002 54,985 996 54,656 2,035 111,670
Penney (J C) Co Inc 266 9,609 1,913 69,107 4,536 163,863 4,177 150,893 8,645 312,300
PetSmart Inc 1,200 9,450 1,144 9,009 1,928 15,183 1,428 11,246 2,650 20,869
Pier 1 Imports Inc 550 4,744 1,552 13,386 2,730 23,546 2,589 22,330 5,299 45,704
Rite Aid Corp 238 9,847 2,018 83,495 4,697 194,338 4,324 178,904 8,831 365,382
Ross Stores Inc 300 13,725 528 24,156 1,315 60,161 1,250 57,188 2,561 117,165
Ruddick Corp 0 -- 0 -- 626 11,542 468 8,629 0 --
Saks Inc 564 20,269 1,445 51,930 2,532 90,994 2,477 89,017 5,077 182,454
</TABLE>
51
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ----------------- ------------------- -------------------- ---------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
School Specialty Inc 0 $ -- 90 $ 1,986 187 $ 4,126 160 $ 3,530 358 $ 7,898
Sears Roebuck & Co 458 18,606 3,230 131,219 7,432 301,925 6,726 273,243 13,435 545,796
Service Merchandise Co 771 482 0 -- 1,328 830 991 619 0 --
Sherwin Williams Co 181 4,355 1,304 31,378 3,152 75,845 2,843 68,410 5,805 139,682
Staples Inc 1,741 51,196 2,787 81,955 6,686 196,611 6,090 179,083 14,727 433,066
Sunglass Hut
International Inc 600 5,813 440 4,263 877 8,496 625 6,055 1,148 11,121
Talbots Inc 200 4,838 176 4,257 0 -- 179 4,330 353 8,538
Tandy Corp 116 6,453 755 41,997 1,787 99,402 1,707 94,952 3,363 187,066
Tech Data Corp 300 5,100 616 10,472 1,052 17,884 1,071 18,207 2,208 37,536
TJX Companies Inc 176 5,027 2,196 62,723 5,283 150,896 4,564 130,358 10,927 312,101
Toys R Us Inc 281 3,969 1,961 27,699 4,730 66,811 4,337 61,260 9,243 130,556
U.S. Office Products Co 0 -- 203 1,000 421 2,079 360 1,779 806 3,978
Venator Group Inc 187 923 1,047 5,170 2,578 12,729 2,311 11,411 4,309 21,276
Walgreen Co 910 29,120 6,528 208,896 16,034 513,088 14,362 459,583 33,240 1,063,679
WalMart Stores Inc 2,248 194,170 14,833 1,281,199 36,030 3,112,091 32,430 2,801,140 74,674 6,449,966
Williams-Sonoma Inc 0 -- 0 -- 0 -- 0 -- 442 15,111
---------- ---------- ----------- ----------- -----------
TOTAL RETAIL
& RELATED
- VALUE $1,289,026 $5,923,930 $13,589,194 $12,462,378 $27,110,471
- COST $ 865,661 $3,554,461 $ 7,834,248 $ 7,279,111 $16,752,337
SERVICES
Percent of Net Assets 0.03% 0.05% 0.11% 0.11% 0.12%
Block (H R) Inc 105 $ 4,764 788 $ 35,756 1,849 $ 83,898 1,733 $ 78,635 3,500 $ 158,812
CMS Energy Corp 0 -- 0 -- 1,152 47,664 0 -- 0 --
DeVry Inc 0 -- 0 -- 100 2,513 0 -- 88 2,211
Public Service
Enterprise Group 208 7,904 1,790 68,020 4,209 159,942 3,836 145,767 7,759 294,841
Service Corp International 229 3,521 1,958 30,104 4,687 72,063 4,271 65,667 8,849 136,052
Sotheby's Holdings Inc 611 17,108 0 -- 743 20,804 556 15,568 0 --
---------- ---------- ----------- ----------- -----------
TOTAL SERVICES
- VALUE $ 33,297 $ 133,880 $ 386,884 $ 305,637 $ 591,916
- COST $ 25,633 $ 136,473 $ 358,220 $ 301,962 $ 627,807
SHIPPING
Percent of Net Assets 0.00% 0.00% 0.00% 0.00% 0.00%
Halter Marine Group Inc 273 $ 1,092 261 $ 1,044 340 $ 1,360 307 $ 1,228 584 $ 2,336
---------- ---------- ----------- ----------- -----------
TOTAL SHIPPING
- VALUE $ 1,092 $ 1,044 $ 1,360 $ 1,228 $ 2,336
- COST $ 3,161 $ 3,083 $ 3,987 $ 3,577 $ 6,892
TELECOMMUNICATIONS
Percent of Net Assets 2.57% 5.68% 8.31% 10.24% 12.18%
ADC Telecommunications 772 $ 31,266 1,561 $ 63,221 2,463 $ 99,752 2,336 $ 94,608 6,730 $ 272,564
Adtran Inc 100 2,050 176 3,608 175 3,588 268 5,494 618 12,669
Advanced Fibre
Communication 300 2,438 616 5,005 1,227 9,969 1,161 9,433 2,473 20,093
Airtouch Communications 645 58,735 3,823 348,132 9,236 841,053 8,187 745,528 19,000 1,730,186
</TABLE>
52
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ------------------ ------------------ ------------------ --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Alcatel Alsthom Compagnie
Generale 3,689 $ 80,005 13,392 $ 290,439 26,784 $ 580,878 26,080 $ 565,609 52,153 $1,131,067
d'electricite ADR
(France)
Aliant Communications
Inc 0 -- 0 -- 430 17,146 0 -- 0 --
Alltel Corp 249 14,909 2,072 124,061 4,912 294,092 4,555 272,730 9,384 561,866
Ameritech Corp 1,199 78,385 7,222 472,137 17,563 1,148,181 15,871 1,037,566 36,619 2,393,966
Andrew Corp 90 1,361 717 10,845 1,624 24,563 1,410 21,326 2,963 44,815
Ascend Communications
Inc 235 18,080 1,412 108,636 3,734 287,285 3,048 234,505 7,282 560,258
Aspect Telecommunication
Corp 0 -- 540 4,151 100 769 0 -- 1,060 8,149
AT & T Corp 2,246 184,452 15,047 1,235,734 34,292 2,816,231 30,994 2,545,381 61,840 5,078,609
Bell Atlantic Corp 1,954 112,232 10,335 593,616 24,592 1,412,503 22,238 1,277,294 50,344 2,891,633
BellSouth Corp 2,100 97,124 15,179 702,028 35,381 1,636,371 32,755 1,514,918 67,338 3,114,382
British
Telecommunications PLC 2,164 380,052 7,923 1,391,476 15,823 2,778,914 15,465 2,716,040 30,697 5,391,160
ADR (UK)
Century Telephone
Enterprise 0 -- 0 -- 1,089 67,246 0 -- 0 --
Ciena Corp 100 2,788 628 17,506 1,240 34,565 1,071 29,854 2,561 71,387
Comsat Corp 510 14,918 704 20,592 1,331 38,932 1,352 39,546 2,729 79,822
Cox Communications Inc
Class A 413 29,220 769 54,407 1,134 80,231 1,185 83,839 3,311 234,252
Deutsche Telekom Ag ADR 4,626 211,060 16,858 769,145 33,615 1,533,684 32,780 1,495,587 65,430 2,985,243
(Germany)
DSP Communications Inc 0 -- 440 6,600 0 -- 536 8,040 883 13,245
Ericsson L M Telephone
ADR 2,532 65,832 9,126 237,276 18,184 472,784 17,728 460,927 35,471 922,245
(Sweden)
Federal Signal Corp 498 11,672 431 10,102 707 16,570 716 16,781 1,572 36,844
Frontier Corp 250 8,984 1,175 42,227 2,757 99,080 2,459 88,370 5,557 199,704
Glenayre Technologies
Inc 650 2,295 572 2,020 1,030 3,637 714 2,521 1,259 4,446
Global TeleSystems Group
Inc 200 11,075 440 24,420 877 48,674 893 49,562 1,766 98,012
GTE Corp 1,256 81,482 6,413 416,042 15,277 991,095 13,779 893,912 31,307 2,031,041
Hong Kong
Telecommunications Ltd 11,724 197,106 42,354 712,075 82,296 1,383,602 82,729 1,390,877 160,192 2,693,221
ADR (Hong Kong)
ICG Communications Inc 200 3,750 528 9,933 1,052 19,791 982 18,474 2,031 38,208
Intermedia Communications
Inc 0 -- 100 1,813 100 1,813 0 -- 88 1,595
IXC Communications Inc 0 -- 176 9,152 263 13,676 268 13,936 530 27,560
Leap Wireless
International Inc 100 594 198 1,176 394 2,339 379 2,250 773 4,590
Loral Space &
Communications 1,042 18,756 2,626 47,268 4,919 88,542 4,657 83,826 9,620 173,159
Lucent Technologies Inc 1,313 133,351 8,643 877,804 21,043 2,137,180 18,927 1,922,272 43,644 4,432,593
MCI WorldCom Inc 2,154 177,704 13,480 1,112,099 32,508 2,681,910 29,744 2,453,879 65,936 5,439,719
McLeod Inc Class A 200 7,700 440 16,940 877 33,765 804 30,954 1,766 67,990
Network Appliance Inc 0 -- 704 29,568 0 -- 0 -- 0 --
NEXTEL Communications
Class A 278 8,357 2,205 66,288 5,143 154,611 4,621 138,918 9,780 294,010
Nippon Telegraph &
Telegraph ADR 1,824 73,986 7,069 286,736 16,440 666,848 16,358 663,520 32,374 1,313,169
(Japan)
Nokia Corp 556 75,408 1,988 269,623 3,966 537,889 4,011 543,991 7,751 1,051,228
Northern Telecom Ltd 833 48,366 4,347 252,398 10,362 601,644 9,386 544,997 21,708 1,260,420
NTL Inc 0 -- 528 41,019 964 74,891 893 69,375 88 6,837
Omnipoint Corp 200 2,325 264 3,069 351 4,080 357 4,150 530 6,161
Paging Network Inc 500 2,000 616 2,464 1,315 5,260 1,161 4,644 2,561 10,244
Pairgain Technologies
Inc 300 2,588 616 5,313 1,139 9,824 1,071 9,237 2,561 22,089
</TABLE>
53
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ --------------------- ------------------- ------------------- -------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Pan Am Sat Corp 100 $ 3,588 176 $ 6,314 263 $ 9,435 268 $ 9,615 618 $ 22,171
Picturetel Corp 400 3,269 352 2,877 614 5,018 446 3,645 707 5,778
Qualcom Inc 400 29,200 792 57,816 1,227 89,571 1,518 110,814 3,180 232,139
Qwest Communications
International Inc. 700 43,006 1,596 98,054 2,553 156,850 2,321 142,617 6,536 401,555
SBC Communication Inc 1,826 96,549 12,922 683,250 31,377 1,659,059 27,867 1,473,467 64,875 3,430,265
Scientific-Atlanta Inc 75 2,433 649 21,052 1,429 46,353 1,355 43,953 2,634 85,439
SkyTel Communications
Inc 0 -- 352 6,336 0 -- 0 -- 0 --
Sprint Corp 485 41,619 3,298 283,010 7,785 668,050 7,144 613,043 14,791 1,269,252
Sprint Corp (PCS Group) 217 6,944 1,661 53,152 3,970 127,040 3,619 115,808 7,585 242,719
Tel-Save Holdings Inc 100 994 540 5,366 977 9,709 893 8,874 1,855 18,434
Tele Danmark A/S ADR
(Denmark) 1,649 99,351 5,878 354,150 11,681 703,780 11,412 687,572 22,626 1,363,216
Tele-Communications TCI
Ventures 2,216 61,356 4,636 128,359 7,348 203,448 6,941 192,178 15,007 415,505
Group Class A
Telecommunications of
New Zealand 1,159 46,360 4,058 162,320 7,973 318,920 7,771 310,839 15,640 625,599
Corp ADR (New Zealand)
Telefonica de Espana
SA ADR 569 78,260 2,066 284,006 4,216 579,653 4,165 572,629 7,997 1,099,614
(Spain)
Telephone & Data System
Inc 0 -- 0 -- 725 36,431 0 -- 0 --
Tellabs Inc 187 14,972 1,201 96,155 3,032 242,749 2,781 222,653 6,478 518,644
U.S. West Inc 569 30,335 3,863 205,946 9,084 484,291 8,380 446,758 17,250 919,640
Vanguard Cellular Systems
Class A 411 11,457 290 8,084 522 14,551 381 10,620 344 9,589
Vodafone Group PLC ADR
(UK) 1,008 183,644 3,682 670,813 7,306 1,331,062 7,058 1,285,878 14,188 2,584,875
Western Wireless Corp
Class A 0 -- 88 2,382 0 -- 0 -- 265 7,172
---------- ----------- ----------- ----------- -----------
TOTAL
TELECOMMUNICATIONS
- VALUE $3,005,743 $13,827,606 $30,441,428 $28,355,634 $59,982,057
- COST $1,833,269 $ 7,672,179 $16,545,823 $15,666,281 $35,080,790
TEXTILES
Percent of Net Assets 0.06% 0.05% 0.06% 0.09% 0.10%
Brown Group Inc 31 $ 484 158 $ 2,469 296 $ 4,625 197 $ 3,078 224 $ 3,500
Burlington Industries Inc 729 4,511 419 2,593 996 6,163 669 4,139 1,680 10,395
Cintas Corp 420 29,715 880 62,260 1,350 95,513 1,634 115,606 3,339 236,233
Collins & Aikman Corp 0 -- 0 -- 0 -- 0 -- 353 1,787
Mohawk Industries Inc 0 -- 0 -- 0 -- 0 -- 88 2,860
Shaw Industries Inc 1,160 25,448 1,622 35,583 2,918 64,014 2,772 60,811 5,829 127,873
Springs Industries Inc
Class A 33 1,097 185 6,151 293 9,742 324 10,773 670 22,278
Unifi Inc 168 2,027 892 10,760 1,574 18,986 1,412 17,032 2,950 35,584
West Point Stevens Inc 200 5,100 528 13,464 1,152 29,376 1,071 27,311 2,120 54,059
---------- ----------- ----------- ----------- -----------
TOTAL TEXTILES
- VALUE $ 68,382 $ 133,280 $ 228,419 $ 238,750 $ 494,569
- COST $ 48,084 $ 113,774 $ 205,657 $ 202,132 $ 445,509
</TABLE>
54
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ------------------- -------------------- -------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
TOBACCO
Percent of Net Assets 0.16% 0.37% 0.58% 0.70% 0.86%
British American Tobacco
PLC ADR (UK) 2,121 $ 39,504 8,258 $153,805 17,503 $ 325,993 16,800 $ 312,899 29,974 $ 558,265
Fortune Brands Inc 180 5,423 1,301 39,193 3,084 92,906 2,819 84,922 5,727 172,525
Philip Morris Co Inc 2,871 112,327 16,097 629,794 38,944 1,523,684 35,108 1,373,600 80,747 3,159,225
Swedish Match AB ADR
(Sweden) 852 28,329 2,502 83,192 5,527 183,773 5,155 171,403 10,793 358,866
-------- -------- ---------- ---------- ----------
TOTAL TOBACCO
- VALUE $185,583 $905,984 $2,126,356 $1,942,824 $4,248,881
- COST $176,141 $805,329 $1,852,181 $1,687,874 $3,993,110
TRANSPORTATION
Percent of Net Assets 0.20% 0.35% 0.46% 0.57% 0.66%
Alexander & Baldwin Inc 204 $ 4,029 607 $ 11,988 1,064 $ 21,014 990 $ 19,553 2,190 $ 43,252
Burlington Northern
Santa Fe 478 15,834 3,689 122,198 8,527 282,457 7,945 263,177 16,252 538,347
Canadian National
Railway Co 4 193 6 290 12 580 11 531 23 1,111
Carnival Corp Class A 1,600 71,200 5,212 231,934 8,710 387,595 8,399 373,755 15,128 673,195
CNF Transportation Inc 262 11,070 670 28,308 1,236 52,221 1,226 51,799 2,418 102,160
Consolidated Freightways
Corp 31 450 159 2,306 355 5,148 255 3,698 503 7,294
CSX Corp 197 7,732 1,673 65,665 3,923 153,978 3,608 141,613 7,462 292,883
Fritz Companies Inc 200 1,488 176 1,309 263 1,956 0 -- 353 2,625
Galileo International Inc 200 10,100 440 22,220 877 44,289 893 45,097 1,855 93,677
Hunt (J B) Transport
Services 0 -- 0 -- 522 12,267 0 -- 0 --
Kansas City Southern
Industries 643 30,060 1,341 62,692 2,112 98,736 1,924 89,947 5,723 267,549
Laidlaw Inc Class B 395 3,037 2,494 19,173 5,928 45,572 5,557 42,719 10,717 82,386
Norfolk Southern Corp 392 11,001 2,895 81,241 6,821 191,414 6,348 178,140 13,012 365,148
Overseas Shipholding Group 393 4,790 273 3,327 482 5,874 362 4,412 331 4,034
Pittston Brink's Group 323 7,914 546 13,377 1,102 26,999 1,020 24,990 2,212 54,193
Pittston Burlington Group 61 438 141 1,013 287 2,063 197 1,416 355 2,552
Roadway Express Inc 46 707 139 2,137 237 3,644 217 3,336 317 4,874
Tidewater Inc 265 4,985 848 15,953 1,524 28,670 1,326 24,945 2,884 54,254
Trinity Industries Inc 322 10,606 563 18,544 1,056 34,782 1,103 36,330 2,213 72,890
Union Pacific Corp 278 13,031 1,889 88,547 4,475 209,766 4,083 191,390 8,450 396,093
Viad Corp 536 14,171 1,314 34,739 1,801 47,614 2,257 59,669 4,512 119,285
Wisconsin Central Transport 400 5,500 704 9,680 1,315 18,081 1,250 17,188 2,650 36,438
Xtra Corp 200 7,975 176 7,018 263 10,487 179 7,138 442 17,625
Yellow Corp 49 876 196 3,504 513 9,170 267 4,773 386 6,900
-------- -------- ---------- ---------- ----------
TOTAL TRANSPORTATION
- VALUE $237,187 $847,163 $1,694,377 $1,585,616 $3,238,765
- COST $223,702 $775,663 $1,576,068 $1,465,903 $3,253,160
</TABLE>
55
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ----------------- ------------------ ------------------ ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
UTILITIES
Percent of Net Assets 0.26% 0.74% 1.36% 1.39% 1.56%
AES Corp 0 $ -- 1,375 $ 51,133 3,191 $118,665 2,980 $110,819 6,045 $224,797
Allegheny Energy Inc 0 -- 0 -- 1,586 47,084 0 -- 0 --
Ameren Corp 188 7,015 1,042 38,880 2,446 91,266 2,295 85,632 4,650 173,502
American Electric Power Inc 136 5,661 1,415 58,899 3,396 141,359 3,175 132,158 6,475 269,521
American Water Works Co Inc 300 9,075 880 26,620 1,765 53,391 1,607 48,612 3,356 101,518
Baltimore Gas & Electric Co 167 4,279 1,069 27,393 2,673 68,496 2,479 63,524 4,947 126,766
Calenergy Inc 0 -- 0 -- 789 22,141 0 -- 0 --
Carolina Power & Light Co 143 5,702 1,163 46,375 2,719 108,420 2,564 102,240 5,114 203,920
Central & South West Corp 170 4,218 1,658 41,139 3,795 94,163 3,497 86,769 7,053 175,002
Cinergy Corp 157 4,582 1,207 35,229 2,876 83,943 2,626 76,646 5,284 154,226
Conectiv Inc 1,067 22,607 752 15,933 1,337 28,328 973 20,615 907 19,217
Consolidated Edison Inc 255 11,921 1,799 84,103 4,203 196,490 3,887 181,716 7,953 371,802
Dominion Resources Inc 198 7,648 1,515 58,517 3,489 134,763 3,274 126,458 6,671 257,666
DTE Energy Co 218 8,611 1,170 46,215 2,648 104,596 2,432 96,064 4,876 192,601
Duke Power Co 351 19,963 2,790 158,681 6,556 372,873 6,059 344,605 12,336 701,609
Edison International 337 8,594 2,733 69,692 6,422 163,761 5,920 150,959 12,107 308,728
El Paso Energy Corp 0 -- 0 -- 1,476 53,782 0 -- 0 --
Energy East Corp 0 -- 0 -- 953 51,105 0 -- 0 --
Entergy Corp 250 7,063 1,881 53,138 4,445 125,571 4,059 114,667 8,224 232,327
FirstEnergy Corp 260 7,605 1,765 51,626 4,320 126,360 3,935 115,099 8,125 237,655
Florida Progress Corp 0 -- 0 -- 1,257 50,437 0 -- 0 --
FPL Group Inc 221 11,368 1,403 72,167 3,229 166,092 3,010 154,826 6,234 320,660
GPU Inc 122 4,865 1,018 40,593 2,252 89,799 2,171 86,569 4,302 171,541
Hawaiian Electric
Industries Inc 192 6,696 387 13,497 809 28,214 806 28,109 1,572 54,823
Idacorp Inc 0 -- 0 -- 513 15,935 0 -- 0 --
Illinova Corp 0 -- 0 -- 1,011 24,011 0 -- 0 --
Interstate Energy Corp 241 6,643 1,121 30,898 1,829 50,412 1,735 47,821 677 18,660
IPALCO Enterprises Inc 0 -- 0 -- 773 37,056 0 -- 0 --
Kansas City Power &
Light Co 0 -- 0 -- 837 21,344 0 -- 0 --
Keyspan Energy 0 -- 0 -- 630 16,695 0 -- 0 --
LG & E Energy Corp 0 -- 0 -- 870 19,847 0 -- 0 --
Midamerican Energy Co 0 -- 0 -- 596 16,092 0 -- 0 --
Minnesota Power & Light Co 349 14,025 238 9,565 421 16,919 312 12,539 296 11,896
Montana Power Co 0 -- 0 -- 722 43,952 0 -- 0 --
National Power ADR (UK) 938 30,720 3,300 108,075 6,631 217,165 6,621 216,837 12,915 422,965
Nevada Power Co 444 10,628 317 7,588 571 13,668 421 10,078 397 9,503
New Century Energies Inc 0 -- 20 811 1,421 57,639 45 1,825 120 4,868
New England Electric System 0 -- 0 -- 884 43,040 0 -- 0 --
Niagara Mohawk Power Corp 71 1,038 1,372 20,066 3,417 49,974 3,116 45,572 6,359 92,999
NIPSCO Industries Inc 0 -- 0 -- 1,779 46,143 0 -- 0 --
Northeast Utilities 0 -- 0 -- 1,679 25,080 0 -- 0 --
Northern States Power Co 190 4,904 1,260 32,524 2,844 73,411 2,646 68,300 5,113 131,978
</TABLE>
56
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ------------------ --------------------- ------------------- --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
COMMON STOCKS (Continued)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OGE Energy Corp 0 $ -- 0 $ -- 1,073 $ 25,618 0 $ -- 0 $ --
Pacificorp 317 5,686 2,318 41,579 5,355 96,055 5,031 90,244 9,944 178,370
PECO Energy Co 242 8,576 1,653 58,578 3,982 141,112 3,655 129,524 7,577 268,509
PG & E Corp 446 14,049 2,915 91,823 6,859 216,059 6,331 199,425 13,132 413,657
Pinnacle West Capital
Corp 0 -- 0 -- 1,169 42,230 0 -- 0 --
Potomac Electric
Power Co 0 -- 0 -- 1,583 38,586 0 -- 0 --
PP & L Resources Inc 87 2,219 1,160 29,580 2,677 68,263 2,513 64,082 5,587 142,468
Public Service Company
Of New Mexico 0 -- 0 -- 570 8,764 420 6,458 0 --
Puget Sound Power &
Light Co 0 -- 0 -- 851 20,530 0 -- 0 --
Reliant Energy Inc 344 9,224 2,243 60,140 5,309 142,348 4,890 131,112 10,077 270,189
SCANA Corp 0 -- 0 -- 1,267 29,774 0 -- 0 --
Sempra Energy 248 5,208 1,813 38,073 4,323 90,783 3,979 83,559 8,220 172,619
Southern Co 765 19,173 5,375 134,711 12,575 315,161 11,671 292,503 23,910 599,243
TECO Energy Inc 0 -- 0 -- 1,568 33,908 0 -- 0 --
Texas Utilities Co 261 11,076 2,099 89,076 5,018 212,951 4,656 197,588 9,536 404,683
Unicom Corp 228 8,108 1,604 57,042 3,867 137,520 3,609 128,345 7,337 260,921
Wisconsin Energy Corp 0 -- 0 -- 1,442 36,861 0 -- 0 --
-------- ---------- ---------- ---------- ----------
TOTAL UTILITIES
- VALUE $308,750 $1,799,959 $4,966,005 $3,851,899 $7,701,409
- COST $289,186 $1,658,136 $4,307,171 $3,468,806 $7,100,085
</TABLE>
57
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020
-------------------- --------------------- ----------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C>
WARRANTS
Percent of Net Assets 0.00% 0.00% 0.00%
Morrison Knudsen Corp
(03/11/03) 4 $ 15 17 $ 64 27 $ 101
Edison Brothers Stores
(09/26/05) 0 -- 0 -- 16 5
Golden State Bancorp
(01/01/01) 200 1,006 500 2,531 800 4,025
Marvel Enterprises
(10/02/01) 0 -- 17 -- 130 1
Petrofina SA
(08/05/03) 0 -- 100 888 100 888
----------- ------------ ------------
TOTAL WARRANTS
- VALUE $ 1,021 $ 3,483 $ 5,020
- COST $ 1,154 $ 2,258 $ 9,202
RIGHTS
Percent of Net Assets 0.00% 0.00% 0.00%
MEMC Electronic
Materials Inc, 01/01/80 300 $ -- 264 $ -- 351 $ --
----------- ------------
TOTAL RIGHTS
- VALUE -- -- --
- COST -- -- --
TOTAL COMMON STOCKS
- VALUE $24,095,120 $109,664,322 $244,592,651
- COST $18,265,855 $ 76,786,629 $166,717,305
</TABLE>
<TABLE>
<CAPTION>
LifePath 2030 LifePath 2040
---------------------- ----------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
WARRANTS
Percent of Net Assets 0.00% 0.00%
Morrison Knudsen Corp
(03/11/03) 25 $ 94 42 $ 158
Edison Brothers Stores
(09/26/05) 0 -- 0 --
Golden State Bancorp
(01/01/01) 900 4,556 1,900 9,559
Marvel Enterprises
(10/02/01) 17 -- 54 --
Petrofina SA
(08/05/03) 100 888 200 1,775
------------ ------------
TOTAL WARRANTS
- VALUE $ 5,538 $ 11,492
- COST $ 4,846 $ 7,982
RIGHTS
Percent of Net Assets 0.00% 0.00%
MEMC Electronic
Materials Inc, 01/01/80 357 $ -- 707 $ --
TOTAL RIGHTS
- VALUE -- --
- COST -- --
TOTAL COMMON STOCKS
- VALUE $226,659,217 $480,714,636
- COST $156,199,345 $355,254,371
</TABLE>
58
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010 LifePath 2020
-------------------------- --------------------------- --------------------------
Principal Value Principal Value Principal Value
U.S. TREASURY SECURITIES
<S> <C> <C> <C> <C> <C> <C>
Percent of Net Assets 54.89% 43.01% 26.29%
U.S. TREASURY BONDS
Percent of Net Assets 10.23% 6.12% 5.19%
U.S. Treasury Bonds, 6.00%-13.75%,
$ 9,800,000 $11,939,748 $12,350,000 $ 14,912,827 $15,700,000 $19,020,254
02/15/01-02/15/27 ----------- ------------ -----------
TOTAL U.S. TREASURY
BONDS
- VALUE $11,939,748 $ 14,912,827 $19,020,254
- COST $12,054,628 $ 15,066,890 $18,674,330
U.S. TREASURY NOTES
Percent of Net Assets 44.66% 36.89% 21.10%
U.S. Treasury Notes, 4.00%-8.75%,
$50,650,000 $52,141,836 $86,870,000 $ 89,839,897 $74,555,000 $77,275,058
03/31/00-11/15/28 ----------- ------------ -----------
TOTAL U.S. TREASURY
NOTES
- VALUE $52,141,836 $ 89,839,897 $77,275,058
- COST $51,684,430 $ 89,030,801 $76,868,767
TOTAL U.S. TREASURY
SECURITIES
- VALUE $64,081,584 $104,752,724 $96,295,312
- COST $63,739,058 $104,097,691 $95,543,097
</TABLE>
<TABLE>
<CAPTION>
LifePath 2030 LifePath 2040
-------------------------- ------------------------
Principal Value Principal Value
U.S. TREASURY SECURITIES
<S> <C> <C> <C> <C>
Percent of Net Assets 14.56% 1.71%
U.S. TREASURY BONDS
Percent of Net Assets 12.69% 1.71%
U.S. Treasury Bonds, 6.00%-13.75%,
02/15/01-02/15/27 $28,240,000 $35,134,246 $6,400,000 $8,431,605
----------- ----------
TOTAL U.S. TREASURY
BONDS
- VALUE $35,134,246 $8,431,605
- COST $33,690,726 $8,846,945
U.S. TREASURY NOTES
Percent of Net Assets 1.87% 0.00%
U.S. Treasury Notes, 4.00%-8.75%,
03/31/00-11/15/28 $ 5,000,000 $ 5,165,321 $ 0 $ --
----------- ----------
TOTAL U.S. TREASURY
NOTES
- VALUE $ 5,165,321 --
- COST $ 5,265,683 --
TOTAL U.S. TREASURY
SECURITIES
- VALUE $40,299,567 $8,431,605
- COST $38,956,409 $8,846,945
</TABLE>
59
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
----------------------------- ------------------------------
Principal/ Value Principal/ Value
Shares Shares
SHORT-TERM INSTRUMENTS
<S> <C> <C> <C> <C>
Percent of Net Assets 30.52% 18.98%
U.S. TREASURY BILLS
Percent of Net Assets 22.92% 10.23%
U.S. Treasury Bills, 4.30%-4.45%**,
04/01/99-05/13/99 $26,864,000 $ 26,754,965 $25,023,000 $ 24,918,854
------------ ------------
TOTAL U.S. TREASURY
BILLS
- VALUE $ 26,754,965 $ 24,918,854
- COST $ 26,755,729 $ 24,919,688
CASH EQUIVALENTS
Percent of Net Assets 7.60% 8.75%
Dreyfus Institutional Money Market 775,364 $ 775,364 1,010,585 $ 1,010,585
Fund
Janus International Money Market 3,100,000 3,100,000 9,300,000 9,300,000
Fund
Merrimac Cash Fund-Premium Class 5,000,000 5,000,000 11,000,000 11,000,000
------------ ------------
TOTAL CASH EQUIVALENTS
- VALUE $ 8,875,364 $ 21,310,585
- COST $ 8,875,364 $ 21,310,585
TOTAL SHORT-TERM
INSTRUMENTS
- VALUE $ 35,360,329 $ 46,229,439
- COST $ 35,636,093 $ 46,230,273
TOTAL INVESTMENT IN
SECURITIES
(NOTES 1 AND 3)
- VALUE $123,807,033 $260,646,485
- COST $117,636,006 $227,114,593
------------ ------------
TOTAL INVESTMENT IN 106.05% $123,807,033 107.02% $260,646,485
SECURITIES
Other Assets and Liabilities, Net (6.05)% (7,066,623) (7.02%) (17,085,423)
------------ ------------ ------------ ------------
TOTAL NET ASSETS 100.00% $116,740,410 100.00% $243,561,062
============ ============ ============ ============
Non-income earning securities.
Represents investment of
collateral
received from securities lending
transactions. See Note 4.
* Cost for federal income tax
purposes is $117,642,542,
$227,165,080, $315,139,476,
$221,836,741, $414,678,012 for
Lifepath 2000, Lifepath 2010,
Lifepath 2020, Lifepath 2030,
and Lifepath 2040, respectively,
and net unrealized appreciation
consists of:
Gross Unrealized Appreciation $ 8,302,397 $ 38,682,689
Gross Unrealized Depreciation (2,137,906) (5,201,284)
------------ ------------
Net Unrealized Appreciation $ 6,164,491 $ 33,481,405
============ ============
</TABLE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
------------------------------ ----------------------------- -----------------------------
Principal/ Value Principal/ Value Principal/ Value
Shares Shares Shares
<S> <C> <C> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS
Percent of Net Assets 14.26% 9.61% 9.79%
U.S. TREASURY BILLS
Percent of Net Assets 5.95% 2.98% 0.75%
U.S. Treasury Bills,
4.30%-4.45%**,
04/01/99-05/13/99 $21,868,000 $ 21,772,205 $ 8,305,000 $ 8,266,625 $ 3,688,000 $ 3,666,849
------------ ------------ ------------
TOTAL U.S. TREASURY
BILLS
- VALUE $ 21,772,205 $ 8,266,625 $ 3,666,849
- COST $ 21,773,013 $ 8,266,782 $ 3,666,671
CASH EQUIVALENTS
Percent of Net Assets 8.31% 6.63% 9.04%
Dreyfus Institutional
Money Market Fund 33,039 $ 33,039 1,147,440 $ 1,147,440 922,675 $ 922,675
Janus International
Money Market Fund 12,900,000 12,900,000 4,700,000 4,700,000 20,100,000 20,100,000
Merrimac Cash
Fund-Premium Class 17,500,000 17,500,000 12,500,000 12,500,000 23,500,000 23,500,000
------------ ------------ ------------
TOTAL CASH EQUIVALENTS
- VALUE $ 30,433,039 $ 18,347,440 $ 44,522,675
- COST $ 30,433,039 $ 18,347,440 $ 44,522,675
TOTAL SHORT-TERM
INSTRUMENTS
- VALUE $ 52,205,244 $ 26,614,065 $ 48,189,524
- COST $ 52,206,052 $ 26,614,222 $ 48,189,346
------------ ------------ ------------
TOTAL INVESTMENT IN
SECURITIES
(NOTES 1 AND 3)
- VALUE $393,093,207 $293,572,849 $537,335,765
- COST $314,466,454 $221,769,976 $412,290,662
------------ ------------ ------------
TOTAL INVESTMENT IN 107.35% $393,093,207 106.05% $293,572,849 109.10% $537,335,765
SECURITIES
Other Assets and
Liabilities, Net (7.35%) (26,929,574) (6.05%) (16,742,431) (9.10%) (44,816,880)
------------ ------------ ----------- ------------ ----------- ------------
TOTAL NET ASSETS 100.00% $366,163,633 100.00% $276,830,418 100.00% $492,518,885
============ ============ =========== ============ =========== ============
Non-income earning securities.
Represents investment of
collateral received
from securities lending
transactions. See Note 4.
* Cost for federal income tax
purposes is $117,642,542,
$227,165,080, $315,139,476,
$221,836,741, $414,678,012
for Lifepath 2000,
Lifepath 2010, Lifepath 2020,
Lifepath 2030, and Lifepath
2040, respectively,
and net unrealized
appreciation consists of:
Gross Unrealized Appreciation $ 88,286,197 $ 81,422,945 $144,148,706
Gross Unrealized Depreciation 10,332,466) (9,686,837) (21,490,953)
------------ ------------ ------------
Net Unrealized Appreciation $ 77,953,731 $ 71,736,108 $122,657,753
============ ============ ============
</TABLE>
** Yield to maturity.
The accompanying notes are an integral part of these financial statements.
60
<PAGE>
STATEMENTS OF ASSETS & LIABILITIES
FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Master Master Master Master Master
Investment Investment Investment Investment Investment
Portfolio Portfolio Portfolio Portfolio Portfolio
LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
Master Portfolio Master Portfolio Master Portfolio Master Portfolio Master Portfolio
<S> <C> <C> <C> <C> <C>
ASSETS
Investments:
In securities, at market value
(see cost below)(Note 1) $123,807,033 $260,646,485 $393,093,207 $293,572,849 $537,335,765
Cash 753 575 962 0 41
Receivables:
Investments sold 892,310 2,682,375 3,078,562 1,886,222 1,985,377
Dividends and interest 958,274 1,693,284 1,658,382 712,594 781,689
Total Assets 125,658,370 265,022,719 397,831,113 296,171,665 540,102,872
LIABILITIES
Payables:
Investment securities purchased 0 0 1,017,111 813,185 2,735,423
Collateral for securities loaned
(Note 4) 8,875,364 21,310,585 30,433,039 18,347,440 44,522,675
Due to BGI (Note 2) 42,596 151,072 217,330 180,622 325,889
Total Liabilities 8,917,960 21,461,657 31,667,480 19,341,247 47,583,987
TOTAL NET ASSETS $116,740,410 $243,561,062 $366,163,633 $276,830,418 $492,518,885
INVESTMENTS AT COST $117,636,006 $227,114,593 $314,466,454 $221,769,976 $412,290,662
</TABLE>
The accompanying notes are an integral part of these financial statements.
61
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Master Master Master Master Master
Investment Investment Investment Investment Investment
Portfolio Portfolio Portfolio Portfolio Portfolio
LifePath LifePath LifePath LifePath LifePath
2000 2010 2020 2030 2040
Master Portfolio Master Portfolio Master Portfolio Master Portfolio Master Portfolio
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
Dividends* $ 414,888 $ 1,679,143 $ 3,765,647 $ 3,421,020 $ 6,932,033
Interest** 4,757,899 6,605,799 6,029,606 2,457,292 559,542
Total Investment Income 5,172,787 8,284,942 9,795,253 5,878,312 7,491,575
EXPENSES (NOTE 2)
Advisory fees 630,133 1,236,989 1,882,147 1,405,948 2,472,170
Total Expenses 630,133 1,236,989 1,882,147 1,405,948 2,472,170
NET INVESTMENT INCOME (LOSS) 4,542,654 7,047,953 7,913,106 4,472,364 5,019,405
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain (loss) on sale
of investments 4,718,618 13,218,840 24,960,119 17,728,114 34,827,042
Net change in unrealized appreciation (1,372,957) 2,322,667 7,187,708 10,724,507 23,947,962
(depreciation) of investments
Net Gain (Loss) on Investments 3,345,661 15,541,507 32,147,827 28,452,621 58,775,004
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ 7,888,315 $22,589,460 $40,060,933 $32,924,985 $63,794,409
* Net of foreign withholding tax of: $ 1,566 $ 3,647 $ 5,470 $ 6,903 $ 8,607
** Interest income includes securities
lending income of: $ 23,722 $ 62,981 $ 110,958 $ 95,289 $ 192,030
</TABLE>
The accompanying notes are an integral part of these financial statements.
62
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio Master Investment Portfolio
-------------------------------- ------------------------------
LifePath 2000 Master Portfolio LifePath 2010 Master Portfolio
-------------------------------- ------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
February 28, February 28, February 28, February 28,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 4,542,654 $ 5,325,967 $ 7,047,953 $ 6,460,247
Net realized gain (loss) on sale 4,718,618 5,800,419 13,218,840 9,734,287
of investments
Net realized gain (loss) on sale 0 0 0 0
of futures contracts
Net change in unrealized (1,372,957) 3,089,773 2,322,667 16,696,571
appreciation
(depreciation) of
investments
Net change in unrealized 0 0 0 0
appreciation
(depreciation) of
futures contracts
Net increase (decrease) in net 7,888,315 14,216,159 22,589,460 32,891,105
assets resulting from
operations
Net increase (decrease) in net (7,346,906) (29,290,156) 12,753,903 5,815,674
assets resulting from
beneficial
interest transactions
Increase (decrease) in Net Assets 541,409 (15,073,997) 35,343,363 38,706,779
NET ASSETS:
Beginning net assets $116,199,001 $131,272,998 $208,217,699 $169,510,920
Ending net assets $116,740,410 $116,199,001 $243,561,062 $208,217,699
</TABLE>
<TABLE>
<CAPTION>
Master Investment Portfolio Master Investment Portfolio Master Investment Portfolio
------------------------------- ------------------------------ ------------------------------
LifePath 2020 Master Portfolio LifePath 2030 Master Portfolio LifePath 2040 Master Portfolio
------------------------------- ------------------------------ ------------------------------
For the For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
February 28, February 28, February 28, February 28, February 28, February 28,
1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 7,913,106 $ 7,680,647 $ 4,472,364 $ 4,066,385 $ 5,019,405 $ 4,675,068
Net realized gain (loss) on sale 24,960,119 16,445,704 17,728,114 9,255,193 34,827,042 26,380,392
of investments
Net realized gain (loss) on sale 0 0 0 0 0 14,539
of futures contracts
Net change in unrealized 7,187,708 39,706,672 10,724,507 35,383,133 23,947,962 58,037,494
appreciation
(depreciation) of
investments
Net change in unrealized 0 0 0 0 0 (52,500)
appreciation
(depreciation) of
futures contracts
Net increase (decrease) in net 40,060,933 63,833,023 32,924,985 48,704,711 63,794,409 89,054,993
assets resulting from
operations
Net increase (decrease) in net (168,062) 10,995,106 10,295,060 26,100,829 23,995,369 57,589,386
assets resulting from
beneficial
interest transactions
Increase (decrease) in Net Assets 39,892,871 74,828,129 43,220,045 74,805,540 87,789,778 146,644,379
NET ASSETS:
Beginning net assets $326,270,762 $251,442,633 $233,610,373 $158,804,833 $404,729,107 $258,084,728
Ending net assets $366,163,633 $326,270,762 $276,830,418 $233,610,373 $492,518,885 $404,729,107
</TABLE>
The accompanying notes are an integral part of these financial statements.
63
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
1. Significant Accounting Policies
Master Investment Portfolio ("MIP") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. MIP was organized on October 20, 1993 as a Delaware business
trust pursuant to an Agreement and Declaration of Trust dated May 14, 1993, and
had no operations prior to May 26, 1994. MIP currently issues, the following
separate portfolios, Asset Allocation, Bond Index, Extended Index, LifePath
2000, LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040, Money Market,
S&P 500 Index, U.S. Equity Index and U.S. Treasury Allocation Master Portfolios.
These financial statements include the LifePath Master Portfolios (the "Master
Portfolios").
The following significant accounting policies are consistently followed by MIP
in the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting principles for investment
companies. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
Security Valuation
The equity securities of each Master Portfolio are valued at the last
reported sale price on the primary securities exchange or national securities
market on which such securities are traded. Securities not listed on an exchange
or national securities market, or securities in which there was no last reported
sales price, are valued at the most recent bid prices. Debt securities are
generally traded in the over-the-counter market and are valued at a price deemed
best to reflect fair value as quoted by dealers who make markets in those
securities or by an independent pricing source. U.S. Government obligations are
valued at the last reported bid price. Debt securities maturing in 60 days or
less are valued at amortized cost, which approximates market value. Any
securities, restricted securities or other assets for which market quotations
are not readily available, are valued at fair value as determined in good faith
in accordance with policies approved by MIP's Board of Trustees.
Security Transactions and Income Recognition
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Dividend income is recognized on the ex-dividend
date, and interest income is recognized on a daily accrual basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Bond discounts and premiums are amortized under provisions of the Internal
Revenue Code of 1986, as amended (the "Code").
Federal Income Taxes
Each Master Portfolio intends to qualify as a partnership for federal income
tax purposes. Each Master Portfolio therefore believes that it will not be
subject to any federal income tax on its income and net realized capital gains
(if any). However, each investor in a Master Portfolio will be taxed on its
allocable share of the partnership's income and capital gains for purposes of
determining its federal income tax liability. The determination of such share
will be made in accordance with the applicable sections of the Code.
It is intended that each Master Portfolio's assets, income and allocations
will be managed in such a way that a regulated investment company investing in a
Master Portfolio will be able to satisfy the requirements of Subchapter M of the
Code, assuming that the investment company invested all of its assets in the
corresponding Master Portfolio.
64
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Futures Contracts
The Master Portfolios may purchase futures contracts to gain exposure to
market changes as this may be more efficient or cost effective than actually
buying the securities. A futures contract is an agreement between two parties to
buy and sell a security at a set price on a future date and is exchange traded.
Upon entering into a futures contract the Master Portfolios are required to
pledge to the broker an amount of cash, U.S. Government securities or other
high-quality debt securities equal to the minimum "initial margin"
requirements of the exchange. Pursuant to the contract, the Master Portfolios
agree to receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments are known as
"variation margin" and are recorded by the Master Portfolios as unrealized
gains or losses. When the contract is closed, the Master Portfolios record a
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. Pursuant to
regulations and/or published positions of the Securities and Exchange
Commission, the Master Portfolios are required to segregate cash, U.S.
Government obligations or high quality, liquid debt instruments in connection
with futures transactions in an amount generally equal to the entire futures
contract amount. Risks of entering into futures contracts include the
possibility that there may be an illiquid market and that a change in the value
of the contracts may not correlate with changes in the value of the underlying
securities. As of February 28, 1999, there were no open futures contracts
outstanding.
Repurchase Agreements
Transactions involving purchases of securities under agreements to resell such
securities at a specified price and time ("repurchase agreements") are treated
as collateralized financing transactions and are recorded at their contracted
resale amounts. These repurchase agreements, if any, are detailed in each Master
Portfolio's Portfolio of Investments. The advisor to the Master Portfolios may
pool each Master Portfolio's cash and invest in repurchase agreements entered
into by the other Master Portfolios. Each Master Portfolio's prospectus requires
that the cash investments be fully collateralized based on values that are
marked to market daily. The collateral is generally held by an agent bank under
a tri-party agreement. It is the advisor's responsibility to value collateral
daily and to obtain additional collateral as necessary to maintain the value at
equal to or greater than 102% of market value. There were no repurchase
agreements outstanding on February 28, 1999.
2. Agreements and Other Transactions with Affiliates
Pursuant to an Investment Advisory Contract with each Master Portfolio,
Barclays Global Fund Advisors ("BGFA") provides investment guidance and policy
direction in connection with the management of each Master Portfolio's assets.
BGFA is entitled to receive 0.55% of the average daily net assets of each of the
LifePath Master Portfolios as compensation for its advisory services. BGFA is an
indirect subsidiary of Barclays Bank PLC.
Investors Bank & Trust Company ("IBT") serves as the custodian to each
Master Portfolio. IBT will not be entitled to receive fees for its custodial
services so long as it is entitled to receive a separate fee from Barclays
Global Investors, N.A. ("BGI") for its services as Sub-Administrator of each
Master Portfolio.
Stephens Inc. ("Stephens") is the Funds' co-administrator, sponsor and
placement agent for the Master Portfolios. Certain officers and directors of MIP
are also officers of Stephens. As of February 28, 1999, these officers of
Stephens indirectly collectively owned less than 1% of the Master Portfolios'
outstanding beneficial interests.
65
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
(Continued)
3. Investment Portfolio Transactions
Purchases and sales of investments, exclusive of short-term securities, for
each Master Portfolio for the year ended February 28, 1999 are as follows:
<TABLE>
<CAPTION>
Aggregate Purchases LifePath 2000 LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
and Sales of: Master Master Master Master Master
Portfolio Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C>
U.S. GOVERNMENT
OBLIGATIONS:
Purchases at cost $52,774,360 $81,554,989 $89,496,463 $24,870,357 $14,257,406
Sales Proceeds 47,552,808 50,708,717 64,163,575 12,715,369 5,390,719
OTHER SECURITIES:
Purchases at cost 3,970,669 20,912,005 37,609,060 34,256,043 99,989,169
Sales proceeds 10,374,853 26,837,634 52,187,649 34,800,472 80,635,558
</TABLE>
4. Portfolio Securities Loaned
As of February 28, 1999, certain Master Portfolios had loaned securities which
were collateralized by cash. Each Master Portfolio receives transaction fees for
providing services in connection with the securities lending program. The risks
to the Portfolios of securities lending are that the borrower may not provide
additional collateral when required or return the securities when due. The value
of the securities on loan and the value of the related collateral were as
follows:
<TABLE>
<CAPTION>
Securities Collateral
<S> <C> <C>
LifePath 2000 Master Portfolio $ 8,630,087 $ 8,875,364
LifePath 2010 Master Portfolio $20,553,970 $21,310,585
LifePath 2020 Master Portfolio $29,389,992 $30,433,039
LifePath 2030 Master Portfolio $17,703,645 $18,347,440
LifePath 2040 Master Portfolio $42,933,747 $44,522,675
</TABLE>
66
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
(Continued)
5. Financial Highlights
The portfolio turnover rates, excluding short-term securities, for the Master
Portfolios are as follows:
<TABLE>
<CAPTION>
For the
Period from
For the May 26, 1994
Year Ended For the For the For the (commencement
February 28, Year Ended Year Ended Year Ended of operations) to
1999 February 28, February 28, February 29, February 28,
1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
LifePath 2000 Master Portfolio 66% 39% 108% 84% 17%
LifePath 2010 Master Portfolio 38% 46% 73% 39% 24%
LifePath 2020 Master Portfolio 36% 41% 61% 49% 28%
LifePath 2030 Master Portfolio 19% 27% 42% 39% 40%
LifePath 2040 Master Portfolio 19% 34% 48% 29% 5%
</TABLE>
67
<PAGE>
PORTFOLIO PERFORMANCE DISCUSSION
- --------------------------------
NestEgg Funds February 28, 1999
________________________________________________________________________
<TABLE>
<CAPTION>
Fund
Performance Average
As of 2/28/99 Total Return
- ---------------------------------------------------------------
<S> <C>
NestEgg 2000 (1.10%)
NestEgg 2010 ( .80%)
NestEgg 2020 ( .60%)
NestEgg 2030 ( .80%)
NestEgg 2040 ( .50%)
</TABLE>
Average annual total returns represent the NestEgg Funds' average annual
decrease in value during the time periods noted above. These figures assume that
dividends have been reinvested in the Funds and capital gains have been
distributed to shareholders as net asset value. The Funds' past performance is
no guarantee of future results. The investment return and principal value of
shares of the Funds will vary with changes in market conditions. Shares of the
Funds may be worth more or less than their original cost when they are redeemed.
The NestEgg Funds' objective is growing assets while taking on levels of risk
appropriate to investors' time horizons. The Funds' strategies assume that the
investor will begin to withdraw his or her investment in the decade included in
the Fund's name. For example, investors in the NestEgg 2040 Fund plan to
withdraw their investments in the year 2040. Assets in this Fund, therefore,
are invested almost entirely in stocks because investors can wait out the short-
term ups and downs of the markets in return for greater potential rewards over
the long term. By contrast, assets in the NestEgg 2000 Fund are invested more
conservatively, with an emphasis on short-term, low-risk, low-return bonds and
money market instruments.
The models used to manage the NestEgg Funds' assets are "strategic" and
"tactical."
Strategic asset allocation techniques affect 75% of the NestEgg Funds' total
asset allocation. The strategic model focuses on long-term asset allocation by
comparing the potential risks and returns for each asset class based on the
Funds' different time horizons. As each Fund nears its target date, the asset
allocation becomes more conservative, shifting to less risky investments -- such
as short-term bonds or money market investments. Short-term volatility in the
markets has only a small effect on a Fund's long-term strategic allocation. The
progression to less risky assets is an ongoing process; 40 years from now, the
asset allocation of the NestEgg 2040 Fund will look very similar to the asset
allocation of the NestEgg 2000 Fund today.
Tactical asset allocation techniques affect 25% of the NestEgg Funds' total
asset allocation. The more conservative tactical approach shifts assets from
long-term bonds to short-term bonds and money market investments as the Fund
nears its target date; the more aggressive tactical approach shifts assets among
stocks, bonds, and cash.
During the past fiscal year, the NestEgg 2030 and 2040 Funds invested primarily
in companies that showed greater long-term potential for growth. It was only
toward the end of the fiscal year, as potential earnings from these stocks
appeared less certain, that assets were reallocated to more stable stock
investments with higher current earnings.
68
<PAGE>
Independent Auditors' Report
To the Shareholders and Board of Trustees
Master Investment Portfolio:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments of LifePath 2000 Master Portfolio, LifePath 2010
Master Portfolio, LifePath 2020 Master Portfolio, LifePath 2030 Master Portfolio
and LifePath 2040 Master Portfolio (five of the portfolios comprising Master
Investment Portfolio) as of February 28, 1999, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period then ended, and the financial
highlights for each of the years in the four-year period then ended. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. All periods
indicated in Note 5 ending prior to March 1, 1995, were audited by other
auditors whose report dated April 20, 1995, expressed an unqualified opinion on
this information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 28, 1999 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned master portfolios of Master Investment Portfolio as of
February 28, 1999, the results of their operations, the changes in their net
assets and their financial highlights for the periods indicated herein, except
as noted above, in conformity with generally accepted accounting principles.
/s/ KPMG LLP
San Francisco, California
April 2, 1998
69
