<PAGE>
NESTEGG Funds
Semi-Annual Report
For the Period Ended August 31, 2000
NestEgg Capital Preservation Fund (formerly the NestEgg 2000 Fund)
NestEgg 2010 Fund
NestEgg 2020 Fund
NestEgg 2030 Fund
NestEgg 2040 Fund
LifePath(R) Master Portfolios
--------------------------------------------------------------------------------
Important Customer Information, Investment Products:
. Are not deposits or obligations of, or guaranteed by, INTRUST Bank, N.A. or
any of its affiliates,
. Are not insured by the FDIC, and
. Are subject to investment risks, including possible loss of the principal
amount invested.
--------------------------------------------------------------------------------
This material must be accompanied or preceded by a prospectus.
American Independence Funds Trust is distributed by BISYS Fund Services.
<PAGE>
Letter from the President August, 2000
Dear Shareholder:
The first half of the 2001 fiscal year, ended August 31, 2000, can be described
as a period of significant volatility and opportunity. Highlights from the
period include:
. The Dow Jones Industrials achieved their biggest point increase ever on
March 16/th/, rising 499.19 points. On April 14/th/, they experienced
their biggest point drop ever, falling 617.78 points.
. The S&P 500 index also reached a milestone, climbing to a record
1,493.87 on March 21/st/.
. The Federal Reserve Board raised short-term interest rates twice during
the first half of the year. At 6.50%, the federal funds rate now stands
at its highest level since January 1991.
As you read through this report and review the performance of the funds in
your portfolio, we remind you to consider the long-term perspective when making
investment decisions. While one fund's recent performance may be better than
another's, it is important to remember that past performance is no guarantee of
future returns. Even as market conditions change, you should maintain your
investment strategy as long as it remains appropriate for your short- or long-
term objectives. One trait many successful investors share is the ability to
stay focused on their personal financial goals while ignoring temporary market
swings.
The NestEgg Funds offer a simple, cost-effective way for you to invest in your
future. We trust that the Funds are fulfilling your expectations and will
continue to do so. We appreciate your confidence and look forward to continuing
to help you meet your investment goals.
/s/ Dave Bunstine
Dave Bunstine
President
The Dow Jones Industrial Average is a broad-based, unmanaged index that
represents the general performace of domestically traded common stocks of medium
to large sized companies. The S&P 500 Stock Index is an unmanaged index
generally representative of the U.S. stock market as a whole. Investors cannot
invest in an index, although they can invest in the underlying securities.
1
<PAGE>
NestEgg Semi-Annual Commentary August 2000
The NestEgg strategies performed well over the last six months as measured
against their benchmarks. The returns of the NestEgg family of funds ranged
from more than 8.00% for the NestEgg 2030 and NestEgg 2040 Funds, to 5.09% for
NestEgg Capital Preservation Fund. Each Fund invests in a combination of
domestic and international stocks, bonds, and short-term money market
instruments in proportions that gradually become more conservative as the year
in the Fund's name approaches. The NestEgg Funds with shorter horizons hold
portfolios more concentrated in money market and fixed-income securities, which
are less volatile but can be expected to have lower performance in periods with
high equity returns. The longer-horizon NestEgg Funds hold portfolios more
highly concentrated in equities, both international and domestic. As a NestEgg
Fund moves toward its maturity date and there is less time to recover from
normal equity market volatility, the allocation of assets within the fund shifts
toward more conservative vehicles such as fixed-income instruments or cash.
For the six-month period ending August 31/st/, U.S. equities, as measured by
Barclays Global Investors, N.A. (BGI) US Equity Market Fund Index, ended the
period up 7.84% despite significant losses in April and May. BGI's U.S. Equity
Market Fund Index is a broad, cap-weighted U.S. Equity Index. Fixed-income
markets also had a strong showing: US bonds, as measured by the Lehman Brothers
Aggregate Index, returned 5.53% and U.S. Money Market instruments, as measured
by U.S. Treasury Bills, rose 2.90%. While some international markets performed
extremely well, particularly Canadian stocks, which returned more than 30%,
international equities across developed markets, as measured by the MSCI EAFE
Index, declined 3.49%. For the six months ending August 31/st/, the NestEgg 2030
and 2040 portfolios both had higher returns than any of the four broad asset
classes that they invest in: international and domestic stocks, bonds, and money
market instruments.
The volatility of global stock markets reflected the uncertain economic
environment across all developed markets. As inflationary pressures in North
America and Europe continued to build, central banks raised interest rates,
tightening monetary policy. The U.S. Federal Reserve Board raised rates twice
over the past six months, first by 0.25% in March, then by 0.50% in May.
Similarly, other central banks, including the European Central Bank, which
controls monetary policy for the EMU countries, echoed the U.S.'s tightening
policy. When US economic data released in early August suggested a slowdown in
the U.S. economy, the Federal Reserve kept rates unchanged at the August 22/nd/
meeting. This economic environment also helped to maintain a strong U.S.
dollar. In particular, the dollar gained against the Euro.
NestEgg Fund performance was helped by higher than normal allocations to US
large-cap companies. The NestEgg Funds also shifted assets from notes to cash
in March and maintained this stance throughout the second quarter. The tactical
allocation of all of the NestEgg Funds currently favors cash and equities over
bonds, driven in part by low yields on longer duration bonds.
2
<PAGE>
On August 31, 2000, assets in the NestEgg Funds were allocated as follows:
<TABLE>
<CAPTION>
U.S. Equity International U.S. Bonds Money
Equity Market*
<S> <C> <C> <C> <C>
NestEgg Capital Preservation 15% 5% 56% 24%
NestEgg 2010 31% 9% 49% 11%
NestEgg 2020 50% 14% 30% 6%
NestEgg 2030 61% 18% 18% 3%
NestEgg 2040 73% 21% 6% 0%
</TABLE>
* The percentage of the Funds' assets that are invested in money market
instruments is net of the Funds' other assets and liabilities.
The NestEgg Funds are organized as "feeder" funds in a "master-feeder"
structure. Instead of investing directly in the individual securities in the
portfolios, 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 invest in the individual securities. Barclays Global Fund Advisors
(BGFA) advises the Master Portfolios.
3
<PAGE>
NestEgg Funds
NestEgg Capital Preservation Fund
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
August 31, 2000
(Unaudited)
<S> <C> <C>
Assets:
Investments in the LifePath Income Fund
Master Portfolio at value (Note 1) $ 4,079,353
-----------
Total Assets 4,079,353
Liabilities:
Accrued expenses and other payables:
Other payables and accrued expenses $ 14,203
---------
Total Liabilities 14,203
-----------
Net Assets consist of:
Paid in Capital 3,897,349
Undistributed (distributions in excess of)
net investment income 5,306
Undistributed (distributions in excess of)
net realized gains on investment transactions 233,015
Net unrealized appreciation (depreciation)
from investments (70,520)
-----------
Net Assets $ 4,065,150
===========
Service Shares
Net Assets $ 4,065,150
Shares outstanding 395,883
Redemption price per share $ 10.27
===========
Maximum Sales Charge - Service Shares 3.00%
-----------
Maximum Offering Price (100% /(100%-
Maximum Sales Charge) of net asset value
adjusted to the nearest cent) per share -
Service Shares $ 10.59
===========
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
For the period ended August 31, 2000
(Unaudited)
<S> <C> <C>
Investment Income allocated from
corresponding Master Porfolio
Interest income $ 99,830
Dividend income (Net of withholding tax of $264) 6,499
Expenses (Note 3) (11,820)
---------
Net Investment Income allocated from
corresponding Master Porfolio 94,509
Expenses:(Note 3)
Investment advisory fees $ 3,225
Administration fees 4,300
12B-1 fees 5,375
Shareholder servicing fees 5,375
Fund accounting fees 7,149
Audit 2,830
Legal 1,968
Other 3,614
--------
Total expenses before waivers 33,836
Less expenses waived (13,843)
---------
Net Expenses 19,993
---------
Net Investment Income 74,516
---------
Realized/Unrealized Gains (Losses) from
Investments allocated from corresponding
Master Portfolio:
Net realized gains from investment transactions 236,314
Net change in unrealized appreciation (depreciation)
on investments (88,887)
---------
Net realized/unrealized gains from investments 147,427
---------
Change in Net Assets Resulting from
Operations $ 221,943
=========
</TABLE>
See notes to financial statements
4
<PAGE>
NestEgg Funds
NestEgg Capital Preservation Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
period ended year ended
August 31, February 29,
2000 2000
------------- --------------
(Unaudited)
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 74,516 $ 92,258
Net realized gains/(losses) on investment transactions 236,314 (3,161)
Net change in unrealized appreciation/(depreciation) from investments (88,887) 42,916
------------- -------------
Change in net assets resulting from operations 221,943 132,013
------------- -------------
Distributions to Shareholders: Service Shares
From net investment income (72,631) (93,291)
Tax return of capital - (4,475)
------------- -------------
Change in net assets from shareholder distributions (72,631) (97,766)
Capital Share Transactions: Service Shares
Proceeds from shares issued 376,689 7,259,910
Dividends reinvested 72,631 97,766
Cost of shares redeemed (2,409,681) (2,831,819)
------------- -------------
Change in net assets from capital share transactions (1,960,361) 4,525,857
------------- -------------
Change in net assets (1,811,049) 4,560,104
Net Assets:
Beginning of period 5,876,199 1,316,095
------------- -------------
End of period $ 4,065,150 $ 5,876,199
============= =============
Share Transactions: Service Shares
Issued 36,975 726,610
Reinvested 7,181 9,800
Redeemed (238,724) (278,982)
------------- -------------
Change in shares (194,568) 457,428
============= =============
</TABLE>
See notes to financial statements
5
<PAGE>
NestEgg Funds
NestEgg Capital Preservation Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the For the
period ended year ended period ended
August 31, February 29, February 28,
2000 2000 1999 (a)
------------- ------------ ------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.95 $ 9.89 $ 10.00
------- ------- --------
Investment Activities
Net investment income 0.18 0.31 0.03
Net realized and unrealized gains on investments 0.32 0.09 (0.14)
------- ------- --------
Total from Investment Activities 0.50 0.40 (0.11)
------- ------- --------
Distributions
Net investment income (0.18) (0.34) -
Tax return of capital - - ** -
------- ------- --------
Total Distributions (0.18) (0.34) -
------- ------- --------
Net Asset Value, End of Period $ 10.27 $ 9.95 $ 9.89
======= ======= ========
Total Return (excludes sales charge) 5.09% (b) 4.19% (1.10%) (b)
Ratios/Supplemental Data:
Net Assets at end of period (000) $ 4,065 $ 5,876 $ 1,316
Ratio of expenses to average net assets 1.48% (c) 1.49% 1.50% (c)
Ratio of net investment income to average net assets 3.46% (c) 3.12% 2.68% (c)
Ratio of expenses to average net assets* 2.12% (c) 3.16% 12.20% (c)
Portfolio Turnover Rate (d) 16% 55%
</TABLE>
________________________________________________________________
* During the period, certain fees were contractually reduced
and/or reimbursed. If such 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) Portfolio turnover rate represents that of the Master Portfolio.
See notes to financial statements
6
<PAGE>
NestEgg Funds
NestEgg 2010 Fund
Statement of Assets and Liabilities
August 31, 2000
(Unaudited)
Assets:
Investments in the LifePath 2010
Master Portfolio at value (Note 1) $ 11,705,123
------------
Total Assets 11,705,123
Liabilities:
Accrued expenses and other payables:
Other payables and accrued expenses $ 18,276
-----------
Total Liabilities 18,276
------------
Net Assets consist of:
Paid in Capital 11,001,517
Undistributed (distributions in
excess of) net investment income 2,000
Undistributed (distributions in excess
of) net realized gains on investment
transactions 811,157
Net unrealized appreciation (depreciation)
from investments (127,827)
------------
Net Assets $ 11,686,847
------------
Service Shares
Net Assets $ 11,686,847
Shares outstanding 1,081,572
Redemption price per share $ 10.81
------------
Maximum Sales Charge - Service Shares 3.00%
Maximum Offering Price (100%/(100%-
Maximum Sales Charge) of net
asset value adjusted to the nearest
cent) per share - Service Shares $ 11.14
Statement of Operations
For the period ended August 31, 2000
(unaudited)
Investment Income allocated from
corresponding Master Porfolio
Interest income $ 206,524
38,870
Dividend income (Net of withholding tax
of $1,303) (34,378)
------------
Expenses (Note 3)
Net Investment Income allocated 211,016
from corresponding Master Porfolio
Expenses:(Note 3)
Investment advisory fees $ 9,378
Administration fees 12,504
12B-1 fees 15,630
Shareholder servicing fees 15,630
Fund accounting fees 6,929
Audit 9,761
Other 8,744
----------
Total expenses before waivers 78,576
Less expenses waived (33,970)
------------
Net Expenses 44,606
------------
Net Investment Income 166,410
------------
Realized/Unrealized Gains (Losses) from
Investments allocated from
corresponding Master Portfolio:
Net realized gains from investment
transactions 790,854
Net change in unrealized appreciation
(depreciation) on investments (273,575)
------------
Net realized/unrealized gains from
investments 517,279
------------
Change in Net Assets Resulting from
Operations $ 683,689
------------
See notes to financial statements
7
<PAGE>
NestEgg Funds
NestEgg 2010 Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
period ended year ended
August 31, February 29,
2000 2000
------------ ------------
(Unaudited)
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 166,410 $ 123,607
Net realized gains/(losses) on investment transactions 790,854 37,272
Net change in unrealized appreciation/(depreciation) from investments (273,575) 213,016
------------ ------------
Change in net assets resulting from operations 683,689 373,895
------------ ------------
Distributions to Shareholders: Service Shares
From net investment income (169,734) (126,338)
From net realized gains on investment transactions - (13,981)
------------ ------------
Change in net assets from shareholder distributions (169,734) (140,319)
Capital Share Transactions: Service Shares
Proceeds from shares issued 1,427,670 14,259,858
Dividends reinvested 165,994 124,490
Cost of shares redeemed (4,091,415) (3,676,143)
------------ ------------
Change in net assets from capital share transactions (2,497,751) 10,708,205
------------ ------------
Change in net assets (1,983,796) 10,941,781
Net Assets:
Beginning of period 13,670,643 2,728,862
------------ ------------
End of period $ 11,686,847 $ 13,670,643
============ ============
Share Transactions: Service Shares
Issued 133,794 1,382,223
Reinvested 15,656 12,080
Redeemed (385,626) (351,592)
------------ ------------
Change in shares (236,176) 1,042,711
============ ============
</TABLE>
See notes to financial statements
8
<PAGE>
NestEgg Funds
NestEgg 2010 Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the For the
period ended year ended period ended
August 31, February 29, February 28,
2000 2000 1999 (a)
------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.37 $ 9.92 $ 10.00
----------- ---------- ----------
Investment Activities
Net investment income 0.15 0.21 0.03
Net realized and unrealized gains on investments 0.44 0.50 (0.11)
----------- ---------- ----------
Total from Investment Activities 0.59 0.71 (0.08)
----------- ---------- ----------
Distributions
Net investment income (0.15) (0.24)
Net realized gains on investment transactions - (0.02)
----------- ---------- ----------
Total Distributions (0.15) (0.26) -
----------- ---------- ----------
Net Asset Value, End of Period $ 10.81 $ 10.37 $ 9.92
=========== ========== ==========
Total Return (excludes sales charge) 5.74% (b) 7.24% (0.80%) (b)
Ratios/Supplemental Data:
Net Assets at end of period (000) $ 11,687 $ 13,671 $ 2,729
Ratio of expenses to average net assets 1.26% (c) 1.50% 1.29% (c)
Ratio of net investment income to average net assets 2.66% (c) 2.27% 2.46% (c)
Ratio of expenses to average net assets* 1.81% (c) 2.94% 8.26% (c)
Portfolio Turnover Rate (d) 33% 49%
</TABLE>
________________________________________________________________________________
* During the period, certain fees were contractually reduced and/or reimbursed.
If such 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) Portfolio turnover rate represents that of the Master Portfolio.
See notes to financial statement
9
<PAGE>
NestEgg Funds
NestEgg 2020 Fund
Statement of Assets and Liabilities
August 31, 2000
(Unaudited)
Assets:
Investments in the LifePath 2020
Master Portfolio at value (Note 1) $ 18,840,538
------------
Total Assets 18,840,538
Liabilities:
Accrued expenses and other payables:
Other payables and accrued expenses $ 51,785
----------
Total Liabilities 51,785
------------
Net Assets consist of:
Paid in Capital 17,279,488
Undistributed (distributions in excess of)
net investment income 2,244
Undistributed (distributions in excess of)
net realized gains on investment transactions 1,248,077
Net unrealized appreciation (depreciation) from
investments 258,944
------------
Net Assets $ 18,788,753
============
Service Shares
Net Assets $ 18,788,753
Shares outstanding 1,646,827
Redemption price per share $ 11.41
------------
Maximum Sales Charge - Service Shares 3.00%
------------
Maximum Offering Price (100% /(100%-
Maximum Sales Charge) of net asset value
adjusted to the nearest cent) per share -
Service Shares $ 11.76
============
Statement of Operations
For the period ended August 31, 2000
(Unaudited)
Investment Income allocated from
corresponding Master Porfolio
Interest income $ 188,901
Dividend income (Net of withholding tax of $2,534) 83,453
Expenses (Note 3) (52,008)
-----------
Net Investment Income allocated from
corresponding Master Porfolio 220,346
Expenses:(Note 3)
Investment advisory fees $ 14,174
Administration fees 18,899
12B-1 fees 23,623
Shareholder servicing fees 23,623
Fund accounting fees 6,372
Audit 5,983
Legal 7,774
Other 8,955
--------
Total expenses before waivers 109,403
Less expenses waived (47,735)
-----------
Net Expenses 61,668
-----------
Net Investment Income 158,678
-----------
Realized/Unrealized Gains (Losses) from
Investments allocated from corresponding
Master Portfolio:
Net realized gains from investment transactions 1,218,418
Net change in unrealized appreciation (depreciation)
on investments (129,434)
-----------
Net realized/unrealized gains from investments 1,088,984
-----------
Change in Net Assets Resulting from
Operations $ 1,247,662
===========
See notes to financial statements
10
<PAGE>
NestEgg Funds
NestEgg 2020 Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
period ended year ended
August 31, February 29,
2000 2000
-------------- ------------
(Unaudited)
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 158,678 $ 134,518
Net realized gains/(losses) on investment transactions 1,218,418 96,860
Net change in unrealized appreciation/(depreciation) from investments (129,434) 583,511
-------------- ------------
Change in net assets resulting from operations 1,247,662 814,889
-------------- ------------
Distributions to Shareholders: Service Shares
From net investment income (159,808) (138,448)
From net realized gains on investment transactions - (58,692)
-------------- ------------
Change in net assets from shareholder distributions (159,808) (197,140)
Capital Share Transactions: Service Shares
Proceeds from shares issued 2,929,336 15,201,419
Dividends reinvested 158,035 141,970
Cost of shares redeemed (4,216,635) (4,279,806)
-------------- ------------
Change in net assets from capital share transactions (1,129,264) 11,063,583
-------------- ------------
Change in net assets (41,410) 11,681,332
Net Assets:
Beginning of period 18,830,163 7,148,831
-------------- ------------
End of period $ 18,788,753 $ 18,830,163
============== ============
Share Transactions: Service Shares
Issued 262,580 1,420,302
Reinvested 14,230 13,390
Redeemed (380,290) (403,094)
-------------- ------------
Change in shares (103,480) 1,030,598
-------------- ------------
</TABLE>
See notes to financial statements
11
<PAGE>
NestEgg Funds
NestEgg 2020 Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the For the
period ended year ended period ended
August 31, February 29, February 28,
2000 2000 1999 (a)
------------- ------------- --------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.76 $ 9.93 $ 10.00
----------- ---------- ---------
Investment Activities
Net investment income 0.10 0.07 (b) 0.01
Net realized and unrealized gains on investments 0.65 0.94 (0.08)
----------- ---------- ---------
Total from Investment Activities 0.75 1.01 (0.07)
----------- ---------- ---------
Distributions
Net investment income (0.10) (0.13) -
Net realized gains on investment transactions - (0.05) -
----------- ---------- ---------
Total Distributions (0.10) (0.18) -
----------- ---------- ---------
Net Asset Value, End of Period $ 11.41 $ 10.76 $ 9.93
=========== ========== =========
Total Return (excludes sales charge) 6.96%(c) 10.20% (0.70%)(c)
Ratios/Supplemental Data:
Net Assets at end of period (000) $ 18,789 $ 18,830 $ 7,149
Ratio of expenses to average net assets 1.20%(d) 1.50% 1.69% (d)
Ratio of net investment income to average net assets 1.68%(d) 1.30% 0.81% (d)
Ratio of expenses to average net assets* 1.71%(d) 3.47% 5.69% (d)
Portfolio Turnover Rate (e) 21% 43%
</TABLE>
_____________________________________________________________
* During the period, certain fees were contractually reduced and/or reimbursed.
If such 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) Per share net investment income has been calculated using the daily average
shares method.
(c) Not Annualized.
(d) Annualized.
(e) Portfolio turnover rate represents that of the Master Portfolio.
See notes to financial statements
12
<PAGE>
NestEgg Funds
NestEgg 2030 Fund
Statement of Assets and Liabilities
August 31, 2000
(Unaudited)
Assets:
Investments in the LifePath 2030
Master Portfolio at value (Note 1) $ 9,026,224
---------------
Total Assets 9,026,224
Liabilities:
Accrued expenses and other payables:
Other payables and accrued expenses $ 8,103
--------
Total Liabilities 8,103
---------------
Net Assets consist of:
Paid in Capital 8,177,415
Undistributed (distributions in
excess of) net investment income 4,573
Undistributed (distributions in excess of)
net realized gains on investment transactions 520,393
Net unrealized appreciation
(depreciation) from investments 315,740
---------------
Net Assets $ 9,018,121
===============
Service Shares
Net Assets $ 9,018,121
Shares outstanding 759,755
Redemption price per share $ 11.87
===============
Maximum Sales Charge - Service Shares 3.00%
---------------
Shares
Maximum Offering Price (100%/(100%-
Maximum Sales Charge) of net asset value
adjusted to the nearest cent)
per share - Service Shares $ 12.24
===============
Statement of Operations
For the period ended August 31, 2000
(Unaudited)
Investment Income allocated from
corresponding Master Porfolio
Interest income $ 42,513
Dividend income (Net of withholding tax of $1,589) 44,709
Expenses (Note 3) (22,597)
---------
Net Investment Income allocated from
corresponding Master Porfolio 64,625
Expenses:(Note 3)
Investment advisory fees $ 6,153
Administration fees 8,204
12B-1 fees 10,255
Shareholder servicing fees 10,255
Fund accounting fees 6,776
Audit 6,464
Other 8,134
----------
Total expenses before waivers 56,241
Less expenses waived (23,770)
---------
Net Expenses 32,471
---------
Net Investment Income 32,154
---------
Realized/Unrealized Gains from
Investments allocated from corresponding
Master Portfolio:
Net realized gains from investment transactions 513,417
Net change in unrealized appreciation (depreciation)
on investments 75,229
---------
Net realized/unrealized gains from investments 588,646
---------
Change in Net Assets Resulting from
Operations $ 620,800
=========
See notes to financial statements
13
<PAGE>
NestEgg Funds
NestEgg 2030 Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
period ended year ended
August 31, February 29,
2000 2000
----------- -----------
(Unaudited)
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 32,154 $ 27,286
Net realized gains/(losses) on investment transactions 513,417 33,841
Net change in unrealized appreciation/(depreciation) from investments 75,229 269,183
----------- -----------
Change in net assets resulting from operations 620,800 330,310
----------- -----------
Distributions to Shareholders: Service Shares
From net investment income (28,857) (26,444)
From net realized gains on investment transactions - (25,954)
----------- -----------
Change in net assets from shareholder distributions (28,857) (52,398)
Capital Share Transactions: Service Shares
Proceeds from shares issued 2,197,113 6,838,796
Dividends reinvested 28,271 30,694
Cost of shares redeemed (1,170,296) (974,353)
----------- -----------
Change in net assets from capital share transactions 1,055,088 5,895,137
----------- -----------
Change in net assets 1,647,031 6,173,049
Net Assets:
Beginning of period 7,371,090 1,198,041
----------- -----------
End of period $ 9,018,121 $ 7,371,090
=========== ===========
Share Transactions: Service Shares
Issued 190,491 635,490
Reinvested 2,471 2,833
Redeemed (101,959) (90,397)
----------- -----------
Change in shares 91,003 547,926
=========== ===========
</TABLE>
See notes to financial statements
14
<PAGE>
NestEgg Funds
NestEgg 2030 Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the For the
period ended year ended period ended
August 31, February 29, February 28,
2000 2000 1999 (a)
------------- ------------ ------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 11.02 $ 9.92 10.00
------------- ------------ ------------
Investment Activities
Net investment income 0.04 0.07 - **
Net realized and unrealized gains on investments 0.85 1.14 (0.08)
------------- ------------ ------------
Total from Investment Activities 0.89 1.21 (0.08)
------------- ------------ ------------
Distributions
Net investment income (0.04) (0.06) -
Net realized gains on investment transactions - (0.05) -
------------- ------------ ------------
Total Distributions (0.04) (0.11) -
------------- ------------ ------------
Net Asset Value, End of Period $ 11.87 $ 11.02 $ 9.92
============= ============ ============
Total Return (excludes sales charge) 8.09% (b) 12.28% (0.80%) (b)
Ratios/Supplemental Data:
Net Assets at end of period (000) $ 9,018 $ 7,371 $ 1,198
Ratio of expenses to average net assets 1.34% (c) 1.49% 1.50% (c)
Ratio of net investment income to average net assets 0.78% (c) 0.72% 0.40% (c)
Ratio of expenses to average net assets* 1.92% (c) 2.48% 17.19% (c)
Portfolio Turnover Rate (d) 16% 26%
</TABLE>
________________________________________________________________________________
* During the period, certain fees were contractually reduced and/or reimbursed.
If such fee 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) Portfolio turnover rate represents that of the Master Portfolio.
See notes to financial statements
15
<PAGE>
NestEgg Funds
NestEgg 2040 Fund
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
August 31, 2000
(Unaudited)
<S> <C> <C>
Assets:
Investments in the LifePath 2040
Master Portfolio at value (Note 1) $8,496,955
----------
Total Assets 8,496,955
Liabilities:
Accrued expenses and other payables:
Other payables and accrued expenses $ 6,399
-------
Total Liabilities 6,399
----------
Net Assets consist of:
Paid in Capital 7,592,034
Undistributed (distributions in excess of)
net investment income 517
Undistributed (distributions in excess of)
net realized gains on investment transactions 679,104
Net unrealized appreciation (depreciation) from
investments 218,901
----------
Net Assets $8,490,556
==========
Service Shares
Net Assets $8,490,556
Shares outstanding 687,066
Redemption price per share $ 12.36
==========
Maximum Sales Charge - Service Shares 3.00%
----------
Maximum Offering Price (100%/(100%-
Maximum Sales Charge) of net asset value
adjusted to the nearest cent) per share -
Service Shares $ 12.74
==========
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
For the period ended August 31, 2000
(Unaudited)
<S> <C> <C>
Investment Income allocated from
corresponding Master Porfolio
Interest income $ 7,481
Dividend income (Net of withholding tax of $1,693) 55,530
Expenses (Note 3) (24,750)
---------
Net Investment Income allocated from
corresponding Master Porfolio 38,261
Expenses:(Note 3)
Investment advisory fees $ 6,739
Administration fees 8,985
12B-1 fees 11,231
Shareholder servicing fees 11,231
Fund accounting fees 6,095
Audit 7,337
Other 7,400
--------
Total expenses before waivers 59,018
Less expenses waived (25,054)
---------
Net Expenses 33,964
---------
Net Investment Income 4,297
---------
Realized/Unrealized Gains (Losses) from
Investments allocated from corresponding
Master Portfolio:
Net realized gains from investment transactions 659,332
Net change in unrealized appreciation (depreciation)
on investments (24,293)
---------
Net realized/unrealized gains from investments 635,039
---------
Change in Net Assets Resulting from
Operations $ 639,336
=========
</TABLE>
See notes to financial statements
16
<PAGE>
NestEgg Funds
NestEgg 2040 Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
period ended year ended
August 31, February 29,
2000 2000
-------------- --------------
(Unaudited)
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 4,297 $ (2,007)
Net realized gains/(losses) on investment transactions 659,332 47,235
Net change in unrealized appreciation/(depreciation) from investments (24,293) 266,785
------------- -------------
Change in net assets resulting from operations 639,336 312,013
------------- -------------
Distributions to Shareholders: Service Shares
From net investment income - (1,120)
From net realized gains on investment transactions - (26,940)
------------- -------------
Change in net assets from shareholder distributions - (28,060)
Capital Share Transactions: Service Shares
Proceeds from shares issued 2,337,867 8,336,003
Dividends reinvested - 7,430
Cost of shares redeemed (2,514,726) (1,475,005)
------------- -------------
Change in net assets from capital share transactions (176,859) 6,868,428
------------- -------------
Change in net assets 462,477 7,152,381
Net Assets:
Beginning of period 8,028,079 875,698
------------- -------------
End of period $ 8,490,556 $ 8,028,079
============= =============
Share Transactions: Service Shares
Issued 196,928 745,065
Reinvested - 662
Redeemed (213,088) (130,532)
------------- -------------
Change in shares (16,160) 615,195
============= =============
</TABLE>
See notes to financial statements
17
<PAGE>
NestEgg Funds
NestEgg 2040 Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the For the
period ended year ended period ended
August 31, February 29, February 28,
2000 2000 1999 (a)
-------------- ------------ -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 11.42 $ 9.95 $ 10.00
------------- ------------ -------------
Investment Activities
Net investment income - ** - ** (0.01)
Net realized and unrealized gains on investments 0.94 1.52 (0.04)
------------- ------------ -------------
Total from Investment Activities 0.94 1.52 (0.05)
------------- ------------ -------------
Distributions
Net investment income - (0.01) -
Net realized gains on investment transactions - (0.04) -
------------- ------------ -------------
Total Distributions - (0.05) -
------------- ------------ -------------
Net Asset Value, End of Period $ 12.36 $ 11.42 $ 9.95
============= ============ =============
Total Return (excludes sales charge) 8.23% (b) 15.36% (0.05%) (b)
Ratios/Supplemental Data:
Net Assets at end of period (000) $ 8,491 $ 8,028 $ 876
Ratio of expenses to average net assets 1.31% (c) 1.48% 1.50% (c)
Ratio of net investment income to average net assets 0.10% (c) (0.05%) (0.51%) (c)
Ratio of expenses to average net assets* 1.86% (c) 2.32% 14.00% (c)
Portfolio Turnover Rate (d) 13% 29%
</TABLE>
_______________________
* During the period, certain fees were contractually reduced and/or reimbursed.
If such 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) Portfolio turnover rate represents that of the Master Portfolio.
See notes to financial statements
18
<PAGE>
NestEgg Funds
Notes to Financial Statements
August 31, 2000
(Unaudited)
________________________________________________________________________________
1. Organization:
Effective March 1, 2000, the INTRUST Funds Trust changed its name to the
American Independence Funds Trust (the "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 management investment company.
The Trust currently offers eleven diversified series, including the NestEgg
Funds. The accompanying financial statements and financial highlights are those
of the NestEgg Capital Preservation Fund (formerly the "NestEgg 2000 Fund"), the
NestEgg 2010 Fund, the NestEgg 2020 Fund, the NestEgg 2030 Fund, and the NestEgg
2040 Fund (individually a "Fund", collectively the "NestEgg Funds"). The
NestEgg Funds have a December 31 tax year end.
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 Capital Managed for investors planning to retire (or begin to
Preservation Fund 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 its investable
assets in a corresponding portfolio (each a "Master Portfolio"): LifePath Income
Master Portfolio, LifePath 2010 Master Portfolio, LifePath 2020 Master
Portfolio, LifePath 2030 Master Portfolio, and LifePath 2040 Master Portfolio.
Each Master Portfolio has a substantially similar 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 August 31, 2000 was approximately 4.25% for NestEgg Capital
Preservation; 4.68% for NestEgg 2010; 3.89% for NestEgg 2020; 2.91% for NestEgg
2030; and 1.51% 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
Continued
19
<PAGE>
NestEgg Funds
Notes to Financial Statements
August 31, 2000
(Unaudited)
________________________________________________________________________________
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.
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, realized and unrealized gains and losses. In
addition, the Funds accrue their own expenses.
Distributions to Shareholders
The NestEgg Funds declare and 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 (i.e. reclass of market discounts,
gain/loss, paydowns and distributions) such amounts are reclassified within the
composition of net assets based on their federal tax-basis treatment; temporary
differences do not require reclassifications.
Dividends and distributions to shareholders which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized gains. To the extent they exceed net
investment income and net realized 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 continue 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 Financial Services, Inc. (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. Investment advisory fees of 0.55% are paid at the Master
Portfolio level.
Continued
20
<PAGE>
NestEgg Funds
Notes to Financial Statements
August 31, 2000
(Unaudited)
________________________________________________________________________________
The Trust 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 Funds' average daily net
assets.
The Trust 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 Service Class shares of the Funds and 0.75% of the average daily net
assets of the 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 has a servicing
relationship.
Fees may be voluntarily reduced to assist the Funds in maintaining more
competitive expense ratios. Information regarding fee reduction transactions is
as follows for the period ended August 31, 2000:
<TABLE>
<S> <C> <C> <C> <C> <C>
Nestegg NestEgg NestEgg NestEgg NestEgg
Capital 2010 2020 2030 2040
Preservation Fund Fund Fund Fund
Fund ----- ---- ---- ----
----
Shareholder Services Fees Waived $ 5,283 $ 9,263 $12,033 $ 7,559 $ 7,117
12b-1 Fees Waived 5,350 15,630 23,324 10,132 11,231
Investment Advisory Fees Waived 3,210 9,077 12,378 6,079 6,706
------- ------- ------- ------- -------
$13,843 $33,970 $47,735 $23,770 $25,054
======= ======= ======= ======= =======
</TABLE>
4. Shares of Beneficial Interest:
Currently, shares of the Funds are offered through two classes: Service and
Premium. As of and for the period ended August 31, 2000, no shareholders were
in the 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.
The Funds are authorized to issue 100 million shares of $.001 par value capital
stock.
21
<PAGE>
{This page intentionally left blank.}
22
<PAGE>
LifePath Master Portfolios Market Overview
Six-month period ending August 31, 2000
U.S. Equity Markets
Inflation fears and rising interest rates created uncertainty in the equity
markets throughout the six months ending August 31, 2000. After enduring
significant volatility, domestic equity markets generally ended the six-month
period in positive territory. Growth stocks lost ground several times during the
half, as many investors sought shelter in more value-oriented "old-economy"
companies.
The period opened with markets reaching new milestones: the Nasdaq Composite
Index hit its historic high of 5,048.62 points on March 10/th/, and on March
16/th/, the Dow Jones Industrials rose 499.19 points, by far their biggest
single-day point increase ever. On March 21/st/, the Federal Reserve Board
raised the Fed Funds rate by 0.25%, to 6.00% and indicated that further action
to damp the economy was likely. This represented the fifth increase in the Fed
Funds rate in nine months, and the first time since February 1995 that the rate
reached 6.00%. Despite this news, stocks and bonds rallied on March 21/st/: the
Dow Jones Industrial Average climbed 227.10 points, the Nasdaq rose 101.68
points, and the S&P 500 reached a record 1,493.87 after climbing 37.24.
The sharp gains in March were followed by steep declines in April. On April
3/rd/, following the announcement of a negative court ruling in the Microsoft
antitrust case, shares of Microsoft fell 14.47% for the day and triggered a
sell-off among technology stocks. The Nasdaq plummeted 7.64% for the day. News
of a 0.70% increase in the Consumer Price Index, the largest jump in more than
five years, along with other factors, caused the sell off to spread to other
sectors. On April 14th, the Nasdaq tumbled 9.67%, marking its second-largest
percentage decline ever, the DJIA fell 5.66%, and the S&P 500 lost 5.83%.
The move toward "old economy" stocks continued through May, and the Nasdaq
suffered while sectors such as financial and utilities performed well. A widely-
anticipated 0.50% increase in interest rates by the Federal Reserve Board on May
16/th/ spurred further market declines: on May 23/rd/, the Nasdaq reached its
year low of 3,164.55, representing a 37.32% drop from its historic high on March
10/th/. In June, many economic reports pointed toward a slowing economy, and the
Federal Reserve left rates unchanged. The Nasdaq responded to the benign
interest-rate environment by rebounding sharply, recovering 16.62% for the
month.
In July, news of a large jump in the Consumer Price Index, followed by the
release of strong GDP figures, renewed fears that the Fed might raise rates once
again, and stock markets slumped. However, more benign reports released in
August--most notably an increase in jobless claims and a record drop in durable
goods orders--suggested a decrease in inflationary pressures. The Fed left rates
unchanged at its August 22/nd/ meeting, and equity markets rallied.
The Nasdaq Composite Index is a market capitalization price-only index that
tracks the performance of domestic common stocks traded on the regular Nasdaq
market as well as National Market System-traded foreign common stocks and ADR's.
The S&P 500 Stock Index is an unmanaged index generally representative of the
U.S. stock market as a whole. Investors cannot invest directly in an index,
although they can invest in its underlying securities.
23
<PAGE>
US Fixed-Income Markets
As with the equity markets, bond markets endured a volatile six-month period.
Bonds languished during the first half of the period, largely because of
concerns about possible higher interest rates and an overheating economy.
However, promising economic reports and the Federal Reserve Bank's subsequent
acknowledgement of a slower economy reassured many investors, and helped the
bond market to rebound toward the end of the period.
Bond markets opened the period in March amid suggestions of a rapidly growing
economy. In an effort to curb inflation potential, the Federal Reserve Board
raised both the discount rate and the federal funds rate 0.25% on March 21/st/.
The bond markets responded to the move by rallying, pushing the 30-year Treasury
yield to 5.97%, below the key 6.00% level.
Continued strong economic indicators in April and May plagued the bond market.
Specifically, the Employment Index, released on April 27/th/, demonstrated a
first quarter drop in unemployment of 1.40%, well above the anticipated 1.00%.
On May 16th, the Federal Reserve raised the federal funds rate by 0.50%. This
increase was the sixth in a year, bringing the federal funds rate to 6.50% and
the discount rate to 6.00%. Near month end, economic figures such as a 6.20%
drop in existing home sales and a 6.40% decrease in durable goods orders
suggested that the economy might be approaching the Fed's desired "soft
landing."
June saw continued signs of a slowing economy, and bond markets rallied,
recovering most of the losses of the previous two months. The bond markets
lost direction for most of July as mixed economic reports painted a murky
picture for inflation. On July 20/th/, however, the Federal Reserve chairman
acknowledged signs of economic slowing during his report to the Senate Banking
Committee. In response, bonds staged their strongest rally in nearly two years.
Continued signs of a slowing economy drove bond prices higher through August.
The Fed's decision to leave rates unchanged came as no surprise to most market
participants: yields declined in anticipation of the August 22/nd/ Federal Open
Market Committee meeting, and showed little change in the following week.
International Equity Markets
The rising interest rate environment that created the volatility in the US
markets also put a damper on international equity markets over the six months
ending August 31/st/. Those markets that performed well early in the period did
so mainly due to continued strong growth in the telecommunications and
technology sectors. However, this trend was reversed in April as many investors
began to flee "new economy" telecommunications and technology companies for the
safe haven of value-oriented "old economy" companies, a trend that would
continue for the remainder of the period.
24
<PAGE>
Echoing the actions of the Federal Reserve Board in the United States, central
banks worldwide raised interest rates during the past six months. The European
Central Bank, Bank of England, and Bank of Japan all pursued a tighter monetary
policy in an effort to curb inflation. Investors abroad generally responded as
they did in the US: many investors retreated to value-oriented companies instead
of telecommunications and technology-related companies.
Not surprisingly, those countries whose markets are dominated by some of the
world's leading technology-related companies, such as Sweden and Finland, were
the hardest hit by the trend reversal. Japan was doubly hurt: declines during
the period from its large telecommunications and technology companies were
compounded by losses in the financial services and banking sectors amid mounting
interest rate fears. Both UK and German markets were also dragged down by their
respective telecommunications companies.
Japan and the UK rebounded in August. Despite the Bank of Japan's 0.25%
interest rate increase, banking and financial services stocks rallied. The UK's
oil stocks compensated for continued weakness in the technology sector.
However, much of Europe continued to see weakness in the technology and banking
sectors against a backdrop of higher interest rates.
25
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS
Percent of Net Assets 19.99% 40.79% 64.46% 78.56% 93.40%
U.S. COMMON STOCKS
Percent of Net Assets 14.77% 31.48% 50.13% 60.75% 72.56%
ADVERTISING
Percent of Net Assets 0.02% 0.11% 0.13% 0.14% 0.17%
Harte-Hanks Inc. 0 -- 0 -- 0 -- 1,282 $ 32,210 0 --
Interpublic Group of Companies
Inc. 176 $ 6,732 1,998 $ 76,422 4,640 $ 177,481 3,566 136,399 8,500 $ 325,124
Omnicom Group Inc. 111 9,262 1,185 98,873 2,915 243,220 2,275 189,820 5,356 446,891
Snyder Communications Inc. + 0 -- 0 -- 0 -- 925 25,322 1,313 35,943
TMP Worldwide Inc. + 0 -- 0 -- 500 34,594 0 -- 0 --
Young & Rubicam Inc. 0 -- 2,144 125,424 1,988 116,298 1,016 59,436 2,053 120,100
-------- -------- ---------- ---------- ----------
15,994 300,719 571,593 443,187 928,058
-------- -------- ---------- ---------- ----------
AEROSPACE / DEFENSE
Percent of Net Assets 0.11% 0.04% 0.53% 0.64% 0.69%
Boeing Co. 0 -- 0 -- 14,598 782,818 11,312 606,606 21,795 1,168,757
General Dynamics Corp. 0 -- 0 -- 3,374 212,351 2,596 163,386 5,637 354,779
Goodrich (B.F.) Co. 82 3,347 1,375 56,117 1,804 73,626 1,409 57,505 3,079 125,662
Honeywell International Inc. 179 6,903 0 -- 12,709 490,091 10,305 397,387 20,415 787,253
Litton Industries Inc. + 0 -- 0 -- 0 -- 696 38,497 0 --
Lockheed Martin Corp. 0 -- 0 -- 6,640 188,410 6,102 173,144 10,934 310,252
Northrop Grumman Corp. 129 10,038 629 48,944 1,263 98,277 849 66,063 1,908 148,466
Raytheon Co. "B" 0 -- 0 -- 5,585 155,333 4,493 124,962 8,561 238,103
Sequa Corp. "A" + 1,510 69,837 0 -- 0 -- 0 -- 0 --
Titan Corp. (The) + 500 12,312 0 -- 0 -- 0 -- 0 --
United Technologies Corp. 0 -- 0 -- 7,998 499,375 5,840 364,635 10,835 676,510
-------- -------- ---------- ---------- ----------
102,437 105,061 2,500,281 1,992,185 3,809,782
-------- -------- ---------- ---------- ----------
AGRICULTURE
Percent of Net Assets 0.00% 0.01% 0.00% 0.00% 0.00%
Maui Land & Pineapple Co. 0 -- 1,200 28,500 0 -- 0 -- 0 --
-------- -------- ---------- ---------- ----------
AIRLINES
Percent of Net Assets 0.01% 0.15% 0.09% 0.12% 0.15%
AMR Corp. + 0 -- 887 29,105 1,509 49,514 1,812 59,456 3,339 109,561
Continental Airlines Inc. "B" + 0 -- 0 -- 827 39,799 950 45,719 1,961 94,373
Delta Air Lines Inc. 0 -- 0 -- 1,226 60,687 795 39,352 1,815 89,842
Northwest Airlines Corp. "A" + 100 3,131 8,816 276,051 252 7,891 1,186 37,137 2,310 72,332
Southwest Airlines Co. 263 5,950 0 -- 8,426 190,638 5,850 132,356 12,306 278,423
UAL Corp. 0 -- 0 -- 552 26,358 771 36,815 1,791 85,520
US Airways Group Inc. + 63 2,142 2,818 95,812 1,148 39,032 955 32,470 2,302 78,268
-------- -------- ---------- ---------- ----------
11,223 400,968 413,919 383,305 808,319
-------- -------- ---------- ---------- ----------
APPAREL
Percent of Net Assets 0.07% 0.12% 0.08% 0.09% 0.11%
Garan Inc. 0 -- 1,600 34,000 0 -- 0 -- 0 --
Haggar Corp. 0 -- 2,200 27,087 0 -- 0 -- 0 --
Jones Apparel Group Inc. + 0 -- 0 -- 1,984 48,608 1,964 48,118 4,263 104,444
Liz Claiborne Inc. 81 3,559 4,965 218,150 1,679 73,771 889 39,060 1,658 72,848
Nike Inc. "B" 193 7,636 0 -- 4,644 183,728 3,686 145,827 7,687 304,117
Unifi Inc. + 3,268 36,969 0 -- 0 -- 0 -- 0 --
VF Corp. 0 -- 1,556 35,594 3,749 85,758 1,986 45,430 3,341 76,425
Warnaco Group Inc. "A" 3,200 16,000 0 -- 0 -- 0 -- 0 --
-------- -------- ---------- ---------- ----------
64,164 314,831 391,865 278,435 557,834
-------- -------- ---------- ---------- ----------
AUTO MANUFACTURERS
Percent of Net Assets 0.03% 0.11% 0.34% 0.41% 0.43%
Ford Motor Company + 0 -- 0 -- 31,452 760,745 24,497 592,521 52,545 1,270,932
General Motors Corp. "A" 351 25,338 0 -- 9,837 710,108 7,449 537,725 13,725 990,773
Navistar International Corp. + 0 -- 6,186 231,975 1,847 69,262 1,334 50,025 1,814 68,025
PACCAR Inc. 93 3,947 872 37,005 2,323 98,582 1,798 76,303 2,163 91,792
-------- -------- ---------- ---------- ----------
29,285 268,980 1,638,697 1,256,574 2,421,522
-------- -------- ---------- ---------- ----------
</TABLE>
26
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
AUTO PARTS & EQUIPMENT
Percent of Net Assets 0.10% 0.07% 0.12% 0.13% 0.12%
Cooper Tire & Rubber Co. 1,065 $ 12,847 0 -- 0 -- 0 -- 0 --
Dana Corp. 0 -- 1,491 $ 36,809 4,600 $ 113,563 3,243 $ 80,062 4,572 $ 112,871
Delphi Automotive Systems Corp. 0 -- 0 -- 11,135 183,032 7,748 127,358 15,858 260,666
Goodyear Tire & Rubber Co. 0 -- 1,325 30,972 3,148 73,585 1,997 46,680 4,436 103,692
Lear Corp. + 0 -- 0 -- 2,127 45,863 0 -- 0 --
Superior Industries
International Inc. 2,422 78,564 0 -- 0 -- 0 -- 0 --
TRW Inc. 0 -- 1,715 78,354 2,025 92,517 1,595 72,872 3,453 157,759
Visteon Corp. 0 -- 1,651 25,900 5,849 91,756 4,163 65,307 4,425 69,417
-------- -------- ---------- ---------- ----------
91,411 172,035 600,316 392,279 704,405
-------- -------- ---------- ---------- ----------
BANKS
Percent of Net Assets 0.43% 1.80% 2.57% 2.99% 3.24%
Amsouth Bancorp 495 9,034 3,339 60,937 6,513 118,862 5,165 94,261 10,930 199,473
Andover Bancorp Inc. 0 -- 0 -- 0 -- 6,100 178,425 0 --
Area Bancshares Corp. 0 -- 1,500 33,750 0 -- 0 -- 0 --
Associated Bancorp 0 -- 0 -- 974 24,457 1,083 27,193 3,828 96,119
Bank of America Corp. 0 -- 9,826 526,305 20,894 1,119,135 18,567 994,495 38,392 2,056,372
Bank of New York Co. Inc. 678 35,553 4,739 248,501 12,390 649,701 8,951 469,368 18,111 949,696
Bank One Corp. 665 23,445 7,053 248,618 18,316 645,639 13,837 487,754 27,987 986,542
Bank United Corp. "A" 0 -- 0 -- 0 -- 1,500 67,500 0 --
Bankunited Financial Corp. "A" + 0 -- 4,400 33,000 0 -- 0 -- 0 --
BB&T Corp. 300 8,119 3,319 89,820 5,854 158,424 4,567 123,594 9,719 263,020
Centennial Bancorp + 0 -- 3,100 19,956 0 -- 0 -- 0 --
CFS Bancorp Inc. 0 -- 3,400 34,425 0 -- 0 -- 0 --
Charter One Financial Inc. 0 -- 1,957 46,479 2,771 65,811 2,444 58,045 7,764 184,395
Chase Manhattan Corp. 37 2,067 7,414 414,257 20,722 1,157,842 13,560 757,665 28,553 1,595,399
City National Corp. 0 -- 0 -- 864 33,750 782 30,547 0 --
Cohoes Bancorp Inc. 0 -- 2,800 44,800 0 -- 0 -- 0 --
Comerica Inc. 194 10,925 1,372 77,261 2,657 149,622 1,970 110,936 4,234 238,427
Commerce Bancshares Inc. 0 -- 0 -- 1,122 40,392 1,001 36,036 3,633 130,788
Community Trust Bancorp Inc. 0 -- 2,200 33,962 0 -- 0 -- 0 --
Compass Bancshares Inc. 0 -- 0 -- 1,956 35,697 2,411 44,001 5,715 104,299
Connecticut Bankshares Inc. + 0 -- 0 -- 9,200 159,850 0 -- 0 --
Dime Bancorp Inc. 0 -- 0 -- 2,291 42,097 2,836 52,111 6,583 120,963
Dime Community Bancshares 0 -- 2,100 42,262 0 -- 0 -- 0 --
FCNB Corp. 0 -- 1,200 22,875 0 -- 0 -- 0 --
Fifth Third Bancorp 508 23,463 3,293 152,095 7,722 356,660 6,168 284,885 12,272 566,813
First National Corp. 0 -- 0 -- 100 1,600 0 -- 0 --
First Republic Bank + 0 -- 1,200 29,775 0 -- 0 -- 0 --
First Security Corp. 0 -- 0 -- 2,798 42,673 2,504 38,186 9,952 151,764
First Sentinel Bancorp Inc. 0 -- 4,500 41,062 0 -- 0 -- 0 --
First Tennessee National Corp. 0 -- 0 -- 2,202 48,444 2,311 50,842 7,242 159,324
First Union Corp. 301 8,710 0 -- 16,093 465,691 11,853 342,995 23,052 667,067
First United Bancshares Inc. 0 -- 1,300 21,126 0 -- 0 -- 0 --
First Virginia Banks Inc. 1 43 0 -- 852 36,423 1,176 50,274 2,941 125,728
First Washington Bancorp Inc. 0 -- 2,000 29,625 0 -- 0 -- 0 --
Firstar Corp. 934 22,299 6,384 152,418 16,450 392,744 12,751 304,430 27,321 652,289
FirstFed Financial Corp. + 0 -- 2,700 48,600 0 -- 0 -- 0 --
FirstMerit Corp. 0 -- 0 -- 1,953 45,529 0 -- 0 --
Flagstar Bancorp Inc. 0 -- 2,700 31,725 0 -- 0 -- 0 --
FleetBoston Financial Corp. 854 36,455 5,688 242,807 15,376 656,363 10,786 460,427 21,447 915,519
Gold Bancorp Inc. 0 -- 3,900 20,902 0 -- 0 -- 0 --
Golden West Financial Corp. 162 7,715 1,470 70,009 2,751 131,016 2,121 101,013 4,583 218,265
Greenpoint Financial Corp. 0 -- 0 -- 1,502 39,240 0 -- 4,893 127,830
Hamilton Bancorp Inc. + 0 -- 1,200 17,850 0 -- 0 -- 0 --
Heritage Commerce Corp. + 0 -- 0 -- 100 1,031 0 -- 0 --
Hibernia Corp. "A" 0 -- 0 -- 3,005 37,750 3,828 48,089 0 --
Horizon Financial Corp. 0 -- 0 -- 42,200 411,450 0 -- 0 --
Huntington Bancshares Inc. 228 3,847 2,710 45,731 4,268 72,023 3,403 57,426 7,124 120,218
KeyCorp 0 -- 0 -- 7,074 142,806 5,847 118,036 9,849 198,827
Local Financial Corporation + 0 -- 4,100 42,025 0 -- 0 -- 0 --
M&T Bank Corp. 0 -- 0 -- 88 42,652 89 43,137 0 --
Marshall & Ilsley Corp. 0 -- 0 -- 2,031 99,011 1,860 90,675 4,882 237,997
Mellon Financial Corp. 484 21,901 3,206 145,071 8,512 385,168 6,384 288,876 12,572 568,883
Mercantile Bankshares Corp. 0 -- 0 -- 1,770 61,037 1,852 63,865 3,939 135,834
National City Corp. 0 -- 0 -- 10,278 215,196 8,002 167,542 14,348 300,411
National Commerce Bancorp 0 -- 0 -- 3,763 72,673 2,243 43,318 4,716 91,078
NBT Bancorp Inc. 0 -- 2,800 31,850 0 -- 0 -- 0 --
North Fork Bancorp 0 -- 0 -- 2,454 43,865 3,293 58,862 7,422 132,668
Northern Trust Corp. 238 20,066 1,520 128,155 3,772 318,027 2,862 241,302 6,270 528,639
Northwest Bancorp Inc. 0 -- 4,300 36,550 0 -- 0 -- 0 --
OceanFirst Financial Corp. 0 -- 2,000 41,250 0 -- 0 -- 0 --
Old Kent Financial Corp. 244 7,152 1,770 51,883 2,332 68,357 1,830 53,642 3,920 114,905
Old National Bancorp 0 -- 0 -- 0 -- 0 -- 0 --
</TABLE>
27
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Pacific Century Financial Corp. 0 -- 0 -- 1,702 $ 23,828 1,487 $ 20,818 0 --
Patriot Bank Corp. 0 -- 3,500 $ 22,969 0 -- 0 -- 0 --
PNC Bank Corp. 319 $ 18,801 0 -- 4,977 293,332 3,776 222,548 6,460 $ 380,736
Premier National Bancorp Inc. 0 -- 1,500 30,375 0 -- 0 -- 0 --
Regions Financial Corp. 170 3,697 2,937 63,880 3,690 80,258 2,905 63,184 6,153 133,828
Republic Bancorp Inc. 0 -- 2,800 24,850 0 -- 0 -- 0 --
Republic Bancorp Inc. KY "A" 0 -- 2,300 15,741 0 -- 0 -- 0 --
Republic Bancshares Inc. + 0 -- 2,100 25,462 0 -- 0 -- 0 --
Royal Bancshares of Pennsylvania
"A"
Sky Financial Group Inc. 0 -- 0 -- 0 -- 2,200 38,500 0 --
SouthTrust Corp. 186 5,243 1,912 53,895 2,837 79,968 2,119 59,729 4,714 132,876
Sovereign Bancorp Inc. 0 -- 0 -- 5,219 44,361 0 -- 7,778 66,113
State Street Corp. 205 24,139 1,107 130,349 2,727 321,104 2,090 246,098 4,511 531,170
Sterling Financial Corp. 0 -- 1,500 24,562 0 -- 0 -- 0 --
Summit Bancorp 174 4,818 2,450 67,834 2,887 79,934 2,296 63,571 4,952 137,109
SunTrust Banks Inc. 338 16,689 0 -- 5,359 264,601 4,107 202,783 7,562 373,374
Synovus Financial Corp. 297 5,847 2,950 58,078 4,706 92,649 3,642 71,702 7,873 155,000
TCF Financial Corp. 0 -- 0 -- 2,116 69,431 2,511 82,392 5,058 165,966
Trustmark Corp. 0 -- 0 -- 6,465 119,602 1,696 31,376 0 --
U.S. Bancorp 571 12,419 0 -- 12,089 262,936 9,900 215,325 19,648 427,344
Union Planters Corp. 173 5,244 1,942 58,867 2,368 71,780 1,831 55,502 3,957 119,947
UnionBanCal Corporation 0 -- 0 -- 700 17,369 0 -- 1,190 29,527
United Community Financial Corp. 0 -- 4,600 29,037 0 -- 0 -- 0 --
USB Holding Co Inc. 0 -- 2,100 28,087 0 -- 0 -- 0 --
USBancorp Inc. 0 -- 4,200 18,506 0 -- 0 -- 0 --
Valley National Bancorp 0 -- 0 -- 6,830 179,287 1,365 35,831 0 --
Wachovia Corp. 172 9,858 0 -- 3,415 195,722 2,608 149,471 4,773 273,553
Washington Federal Inc. 0 -- 0 -- 0 -- 4,200 87,150 0 --
Washington Mutual Inc. 0 -- 0 -- 9,668 338,380 7,472 261,520 12,994 454,790
Wells Fargo & Company 1,497 64,652 9,798 423,151 27,655 1,194,350 19,008 820,908 39,001 1,684,356
West Coast Bancorp 0 -- 2,700 26,662 0 -- 0 -- 0 --
Wilmington Trust Corp. 0 -- 0 -- 719 36,220 696 35,061 1,833 92,337
Zions Bancorp 0 -- 0 -- 1,602 71,689 1,239 55,445 3,921 175,465
-------- ---------- ----------- ---------- -----------
412,201 4,494,897 12,425,509 9,258,667 18,273,043
-------- ---------- ----------- ---------- -----------
BEVERAGES
Percent of Net Assets 0.13% 0.46% 0.81% 0.96% 1.20%
Anheuser-Busch Companies Inc. 0 -- 0 -- 7,678 605,122 4,921 387,836 11,762 926,993
Brown-Forman Corp. "B" 64 3,392 718 38,054 1,150 60,950 820 43,460 1,930 102,290
Coca-Cola Co. 907 47,731 3,174 693,282 37,742 1,986,173 30,522 1,606,220 69,785 3,672,436
Coca-Cola Enterprises 516 9,610 3,045 56,713 7,179 133,709 5,549 103,350 11,890 221,451
Coors (Adolph) Company "B" 559 33,295 0 -- 663 39,490 501 29,841 779 46,399
National Beverage Corp. + 0 -- 2,600 18,200 0 -- 0 -- 0 --
PepsiCo Inc. 747 31,841 8,032 342,364 24,109 1,027,646 17,885 762,348 39,944 1,702,613
Whitman Corp. 0 -- 0 -- 3,487 45,985 2,384 31,439 5,657 74,602
-------- ---------- ----------- ---------- -----------
125,869 1,148,613 3,899,075 2,964,494 6,746,784
-------- ---------- ----------- ---------- -----------
BIOTECHNOLOGY
Percent of Net Assets 0.27% 0.29% 0.58% 0.62% 0.79%
Amgen Inc. + 1,168 88,549 5,376 407,568 17,920 1,358,560 13,554 1,027,563 30,952 2,346,548
Biogen Inc. + 296 20,461 944 65,254 2,972 205,439 2,020 139,632 4,642 320,878
Chiron Corp. + 0 -- 0 -- 2,425 131,102 1,943 105,043 4,574 247,282
Cryolife Inc. + 0 -- 1,200 32,250 0 -- 0 -- 0 --
CuraGen Corp. + 0 -- 0 -- 1,000 44,375 1,200 53,250 2,200 97,625
Exelixis Inc. + 0 -- 0 -- 600 27,000 0 -- 0 --
Gene Logic Inc. + 0 -- 0 -- 2,000 49,125 2,300 56,494 3,500 85,969
Genentech Inc. + 0 -- 0 -- 700 133,350 0 -- 600 114,300
Genome Therapeutics Corp. + 0 -- 0 -- 0 -- 0 -- 1,800 45,225
Genzyme General Division + 0 -- 0 -- 1,231 92,402 864 64,854 1,401 105,163
Immunex Corp. + 1,000 50,250 1,968 98,892 3,856 193,764 3,552 178,488 7,596 381,699
Immunomedics Inc. + 600 15,000 2,500 62,500 1,900 47,500 0 -- 2,000 50,000
Incyte Pharmaceuticals Inc. + 0 -- 0 -- 700 58,056 0 -- 800 66,350
Millennium Pharmaceuticals Inc. + 0 -- 0 -- 1,700 243,312 1,300 186,062 2,400 343,500
Myriad Genetics Inc. + 200 27,975 0 -- 0 -- 0 -- 0 --
Nanogen Inc. + 300 7,237 0 -- 1,100 26,537 0 -- 1,900 45,837
PE Corp. (Celera Genomics Group) + 200 21,687 500 54,219 1,100 119,281 1,000 108,437 2,000 216,875
Regeneron Pharmaceuticals Inc. + 700 24,806 0 -- 0 -- 0 -- 0 --
Sangamo BioSciences Inc. + 0 -- 0 -- 800 39,400 0 -- 0 --
ViroLogic Inc. + 0 -- 0 -- 1,600 32,600 0 -- 0 --
-------- ---------- ----------- ---------- -----------
255,965 720,683 2,801,803 1,919,823 4,467,251
-------- ---------- ----------- ---------- -----------
BUILDING MATERIALS
Percent of Net Assets 0.07% 0.05% 0.07% 0.09% 0.12%
American Standard Companies Inc. + 0 -- 1,816 84,103 1,427 66,088 1,061 49,138 2,573 119,162
Armstrong Holdings Inc. 2,492 39,716 0 -- 0 -- 0 -- 0 --
Masco Corp. 0 -- 0 -- 7,478 145,821 5,804 113,178 12,557 244,861
</TABLE>
28
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31,2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Owens Corning 418 $ 2,168 0 -- 0 -- 0 -- 0 --
Southdown Inc. 0 -- 0 -- 560 $ 35,140 762 $ 47,815 2,131 $ 133,720
USG Corp. 0 -- 0 -- 777 25,010 0 -- 1,666 53,624
Vulcan Materials Co. 190 8,419 806 $ 35,716 1,628 72,141 1,288 57,074 2,790 123,632
York International Corp. 802 19,950 0 -- 0 -- 0 -- 0 --
-------- ---------- ---------- ---------- ----------
70,253 119,819 344,200 267,205 674,999
-------- ---------- ---------- ---------- ----------
CHEMICALS
Percent of Net Assets 0.31% 0.58% 0.55% 0.58% 0.57%
Air Products & Chemicals Inc. 0 -- 1,571 57,047 3,890 141,256 3,072 111,552 6,401 232,436
Airgas Inc. + 5,600 37,100 0 -- 0 -- 0 -- 0 --
Ashland Inc. 99 3,490 0 -- 1,785 62,921 965 34,016 2,044 72,051
Cabot Corp. 0 -- 0 -- 1,916 70,892 1,814 67,118 0 --
Crompton Corp. 0 -- 0 -- 6,851 61,659 3,296 29,664 0 --
Dow Chemical Co. 0 -- 0 -- 11,163 292,331 8,439 220,996 17,626 461,581
Du Pont (E.I.) de Nemours 380 17,052 6,238 279,930 17,541 787,152 13,253 594,728 25,345 1,137,357
Eastman Chemical Co. 114 4,916 571 24,624 1,325 57,141 1,045 45,066 2,030 87,544
Engelhard Corp. 100 1,875 23,456 439,800 2,566 48,112 1,617 30,319 3,551 66,581
Georgia Gulf Corp. 1,837 23,881 0 -- 0 -- 0 -- 0 --
Grace (W.R.) & Company + 1,842 14,621 0 -- 0 -- 0 -- 0 --
Great Lakes Chemical Corp. 67 2,261 0 -- 1,340 45,225 0 -- 1,647 55,586
Hanna (M.A.) Co. 7,180 59,684 0 -- 0 -- 0 -- 0 --
Hercules Inc. 82 1,086 20,138 266,828 4,321 57,253 0 -- 2,383 31,575
IMC Global Inc. 0 -- 0 -- 5,394 79,224 2,294 33,693 5,432 79,782
Lubrizol Corp. 0 -- 0 -- 4,917 106,637 1,566 33,963 0 --
Lyondell Chemical Co. 0 -- 0 -- 0 -- 2,375 31,023 0 --
Millennium Chemicals Inc. 0 -- 0 -- 7,039 116,143 2,016 33,264 0 --
Olin Corp. 0 -- 0 -- 0 -- 1,312 21,648 0 --
PPG Industries Inc. 0 -- 0 -- 2,878 116,559 2,221 89,950 4,851 196,465
Praxair Inc. 0 -- 1,121 49,604 2,700 119,475 2,032 89,916 4,470 197,797
Rohm & Haas Co. "A" 0 -- 1,603 46,387 3,705 107,213 2,768 80,099 6,096 176,403
Schulman Inc. "A" 5,403 65,174 0 -- 0 -- 0 -- 0 --
Sherwin-Williams Co. 181 4,163 1,304 29,992 2,792 64,216 2,143 49,289 4,705 108,215
Sigma-Aldrich Corp. 418 12,148 7,158 208,029 3,434 99,801 1,989 57,805 2,719 79,021
Solutia Inc. 143 2,154 0 -- 3,301 49,721 2,675 40,292 6,440 97,003
Union Carbide Corp. 0 -- 926 37,098 2,249 90,101 1,719 68,867 3,714 148,792
Valspar Corp. 0 -- 0 -- 3,564 105,138 782 23,069 0 --
Wellman Inc. 4,063 49,010 0 -- 0 -- 0 -- 0 --
-------- ---------- ---------- ---------- ----------
298,615 1,439,339 2,678,170 1,786,337 3,228,189
-------- ---------- ---------- ---------- ----------
COMMERCIAL SERVICES
Percent of Net Assets 0.30% 0.35% 0.39% 0.50% 0.55%
Aaron Rents Inc. "B" 0 -- 1,700 23,375 0 -- 0 -- 0 --
ANC Rental Corp. + 0 -- 0 -- 11,111 77,777 5,902 41,314 2,524 17,668
Apollo Group Inc. + 0 -- 0 -- 0 -- 1,027 41,914 1,931 78,809
Aurora Biosciences Corp. + 200 13,675 0 -- 600 41,025 0 -- 900 61,537
Block (H & R) Inc. 105 3,767 988 35,445 1,619 58,082 1,303 46,745 2,740 98,298
Burns International Services
Corp. + 0 -- 1,500 32,250 0 -- 0 -- 0 --
Butler International Inc. + 0 -- 2,500 16,562 0 -- 0 -- 0 --
Caremark Rx Inc. + 0 -- 0 -- 0 -- 4,328 42,468 0 --
CDI Corp. + 0 -- 1,000 18,500 0 -- 0 -- 0 --
Cendant Corp. + 642 8,466 5,182 68,338 11,832 156,035 10,052 132,561 19,788 260,954
Comdisco Inc. 0 -- 0 -- 1,800 43,200 2,753 66,072 6,529 156,696
Concord EFS Inc. + 0 -- 0 -- 3,372 108,325 3,047 97,885 6,824 219,221
Convergys Corp. + 0 -- 1,000 39,125 2,000 78,250 0 -- 1,200 46,950
CPI Corp. 0 -- 1,200 29,250 0 -- 0 -- 0 --
Deluxe Corp. 64 1,408 0 -- 2,631 57,882 2,247 49,434 2,044 44,968
DeVry Inc. + 1,100 41,112 0 -- 0 -- 0 -- 0 --
Donnelley (R.R.) & Sons Co. 139 3,579 7,855 202,266 3,383 87,112 2,773 71,405 3,560 91,670
Dun & Bradstreet Corp. 75 2,475 1,500 49,500 2,726 89,958 2,063 68,079 4,841 159,753
Ecolab Inc. 84 3,271 1,076 41,897 2,168 84,417 1,603 62,417 3,658 142,433
Electro Rent Corp. + 0 -- 1,900 23,275 0 -- 0 -- 0 --
Equifax Inc. 111 2,824 2,300 58,506 2,219 56,446 2,076 52,808 4,276 108,771
First Health Group Corp. + 768 23,856 0 -- 1,606 49,886 1,700 52,806 3,694 114,745
Gartner Group Inc. "A" + 0 -- 0 -- 0 -- 2,261 29,958 2,485 32,926
Healthcare Services Group Inc. + 0 -- 4,500 22,781 0 -- 0 -- 0 --
Insurance Auto Auctions Inc. + 0 -- 1,100 18,150 0 -- 0 -- 0 --
Manpower Inc. 0 -- 0 -- 2,216 80,191 2,064 74,691 4,163 150,649
McKesson HBOC Inc. 345 8,603 2,092 52,169 7,347 183,216 4,533 113,042 7,899 196,981
Modis Professional Services
Inc. + 0 -- 0 -- 4,454 30,621 2,600 17,875 5,246 36,066
NationsRent Inc. + 0 -- 5,600 21,700 0 -- 0 -- 0 --
Ogden Corp. + 4,001 69,517 0 -- 0 -- 0 -- 0 --
Paychex Inc. 252 11,246 2,233 99,648 6,163 275,024 4,755 212,192 11,170 498,461
Quintiles Transnational Corp. + 990 13,798 0 -- 3,175 44,252 2,119 29,534 3,278 45,687
Robert Half International Inc. + 0 -- 0 -- 3,506 111,535 3,682 117,134 7,442 236,749
Servicemaster Co. 0 -- 0 -- 5,145 49,842 4,728 45,802 10,490 101,622
</TABLE>
29
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Sodexho Marriott Services Inc. 1,844 $ 29,965 0 -- 0 -- 0 -- 0 --
Stewart Enterprises Inc. "A" 11,400 36,337 0 -- 0 -- 0 -- 0 --
Valassis Communications Inc. + 350 10,106 0 -- 1,439 $ 41,551 1,054 $ 30,434 1,522 $ 43,948
Viad Corp. 0 -- 0 -- 2,601 76,242 2,357 69,090 4,812 141,052
Wackenhut Corrections Corp. + 0 -- 2,200 $ 19,937 0 -- 0 -- 0 --
-------- -------- ---------- --------- ---------
284,005 872,674 1,880,869 1,565,660 3,086,614
-------- -------- ---------- --------- ---------
COMPUTERS
Percent of Net Assets 1.97% 3.82% 6.18% 7.57% 9.39%
Actuate Software Corp. + 600 15,562 0 -- 0 -- 0 -- 3,800 98,562
Affiliated Computer Services Inc. + 0 -- 0 -- 0 -- 700 32,594 0 --
Apple Computer Inc. + 650 39,609 1,910 116,392 6,524 397,556 4,136 252,038 9,018 549,535
AremisSoft Corp. + 0 -- 2,600 70,850 0 -- 0 -- 0 --
Aztec Technology Partners Inc. + 0 -- 0 -- 0 -- 1 1 0 --
Brocade Communications System Inc. + 200 45,162 0 -- 1,000 225,812 900 203,231 1,900 429,044
CAIS Internet Inc. + 0 -- 0 -- 3,200 25,800 0 -- 0 --
Ceridian Corp. + 92 2,225 3,774 91,284 2,432 58,824 1,938 46,875 4,076 98,588
Cisco Systems Inc. + 4,774 327,019 35,394 2,424,489 114,084 7,814,754 89,986 6,164,041 204,149 13,984,206
Clarus Corp. + 0 -- 0 -- 0 -- 1,500 90,750 2,200 133,100
Cognizant Technology Solutions Corp. + 700 29,925 0 -- 0 -- 0 -- 0 --
Commerce One Inc. + 0 -- 0 -- 1,700 106,303 1,600 100,050 3,900 243,872
Communication Intelligence Corp. + 0 -- 0 -- 0 -- 0 -- 14,400 48,600
Compaq Computer Corp. 1,847 62,913 9,767 332,688 29,137 992,479 22,059 751,385 45,756 1,558,564
Computer Sciences Corp. + 132 10,436 1,137 89,894 2,762 218,371 2,171 171,645 4,722 373,333
Dell Computer Corp. + 2,072 90,391 13,044 569,044 42,956 1,873,955 34,298 1,496,250 76,852 3,352,668
Diebold Inc. 0 -- 0 -- 3,535 99,864 1,878 53,053 3,882 109,666
Documentum Inc. + 300 21,469 0 -- 0 -- 0 -- 0 --
DST Systems Inc. + 0 -- 0 -- 789 74,166 514 48,316 1,501 141,094
Echelon Corp. + 200 9,412 1,300 61,181 1,500 70,594 700 32,944 2,500 117,656
Electronic Data Systems Corp. 458 22,814 2,975 148,192 7,826 389,833 6,176 307,642 13,185 656,778
Electronics For Imaging Inc. + 0 -- 0 -- 1,277 33,202 793 20,618 1,666 43,316
EMC Corporation + 1,734 169,932 11,004 1,078,392 35,920 3,520,160 27,432 2,688,336 61,922 6,068,356
Entrust Technologies Inc. + 0 -- 0 -- 1,500 44,625 0 -- 1,600 47,600
Evercel Inc. + 0 -- 0 -- 100 1,575 0 -- 0 --
Extended Systems Inc. + 100 4,587 500 22,937 0 -- 0 -- 800 36,700
Foundry Networks Inc. + 0 -- 0 -- 0 -- 0 -- 400 37,225
Gateway Inc. + 410 27,921 1,870 127,347 6,310 429,711 4,510 307,131 9,630 655,803
Hewlett-Packard Co. 814 98,290 5,703 688,637 16,925 2,043,694 12,751 1,539,683 25,639 3,095,909
International Business Machines Corp. 1,180 155,760 9,054 1,195,128 27,140 3,582,480 22,576 2,980,032 51,556 6,805,392
Internet Security Systems Inc. + 0 -- 0 -- 900 72,900 800 64,800 1,500 121,500
Intraware Inc. + 0 -- 0 -- 1,700 17,850 0 -- 2,500 26,250
Iomega Corp. + 0 -- 0 -- 0 -- 5,567 22,964 0 --
Juniper Networks Inc. + 600 128,250 1,400 299,250 3,600 769,500 2,800 598,500 7,200 1,539,000
Juno Online Services Inc. + 0 -- 0 -- 3,000 18,750 0 -- 0 --
Kana Communications Inc. + 0 -- 0 -- 900 36,112 1,100 44,137 2,500 100,312
Lexmark International Group Inc. "A" + 280 18,987 734 49,774 2,930 198,691 1,912 129,657 3,926 266,232
Liberate Technologies Inc. + 0 -- 0 -- 0 -- 0 -- 2,500 76,875
MarchFirst Inc. + 0 -- 0 -- 900 17,437 0 -- 0 --
Mentor Graphics Corp. + 0 -- 0 -- 0 -- 1,393 26,293 0 --
Micromuse Inc. + 200 30,375 200 30,375 800 121,500 700 106,312 1,500 227,812
Microstrategy Inc. + 0 -- 0 -- 0 -- 0 -- 2,700 75,262
MyPoints.com Inc. + 0 -- 0 -- 1,400 19,075 0 -- 0 --
NCR Corp. + 261 10,538 2,588 104,490 3,384 136,629 1,353 54,627 2,711 109,457
Netegrity Inc. + 200 17,600 0 -- 0 -- 0 -- 0 --
NetIQ Corp. + 400 22,600 0 -- 0 -- 0 -- 0 --
Network Appliance Inc. + 600 70,200 1,716 200,772 5,730 670,410 4,500 526,500 9,600 1,123,200
Nuance Communications Inc. + 200 26,325 0 -- 0 -- 0 -- 0 --
NVIDIA Corp. + 300 23,812 0 -- 1,000 79,375 1,000 79,375 0 --
NYFIX Inc. + 700 26,250 2,300 86,250 0 -- 0 -- 0 --
Onvia.com Inc. + 0 -- 0 -- 3,100 21,700 0 -- 0 --
ONYX Software Corp. + 0 -- 0 -- 0 -- 0 -- 1,300 29,494
Portal Software Inc. + 0 -- 0 -- 0 -- 0 -- 2,300 127,075
Primus Knowledge Solutions Inc. + 0 -- 0 -- 800 18,850 0 -- 0 --
Procom Technology Inc. + 0 -- 1,200 57,900 0 -- 0 -- 0 --
Proxicom Inc. + 0 -- 0 -- 0 -- 800 19,350 1,900 45,956
Puma Technology Inc. + 0 -- 0 -- 1,600 38,900 1,100 26,744 3,400 82,662
Quantum DLT & Storage Group + 0 -- 0 -- 3,513 47,645 3,277 44,444 7,301 99,020
Quantum Hard Disk Drive Group + 0 -- 0 -- 0 -- 1,788 17,433 0 --
Quintus Corp. + 0 -- 0 -- 1 7 0 -- 0 --
Redback Networks Inc. + 0 -- 0 -- 900 134,437 800 119,500 1,800 268,875
RSA Security Inc. + 0 -- 0 -- 864 51,030 893 52,743 2,055 121,373
Safeguard Scientifics Inc. + 0 -- 0 -- 0 -- 0 -- 1,600 45,700
SanDisk Corp. + 0 -- 0 -- 0 -- 0 -- 1,500 125,250
Sapient Corp. + 0 -- 0 -- 2,600 136,500 2,000 105,000 3,400 178,500
Seagate Technology Inc. + 317 18,822 1,274 75,644 4,153 246,584 2,893 171,772 6,036 358,388
</TABLE>
30
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Silicon Graphics Inc. + 0 -- 0 -- 0 -- 3,598 $ 16,866 0 --
Silicon Storage Technology + 0 -- 0 -- 0 -- 0 -- 1,500 $ 49,219
Sonic Foundry Inc. + 0 -- 3,000 $ 27,937 0 -- 0 -- 0 --
Storage Technology Corp. + 0 -- 0 -- 0 -- 1,616 25,553 0 --
Sun Microsystems Inc. + 1,328 $ 168,573 8,040 1,020,578 26,976 $3,424,266 20,998 2,665,434 47,308 6,005,159
SunGard Data Systems Inc. + 0 -- 0 -- 1,765 63,540 2,121 76,356 5,069 182,484
Synopsys Inc. + 0 -- 0 -- 1,390 51,517 1,418 52,555 3,203 118,711
3Com Corp. + 680 11,305 2,425 40,316 6,167 102,526 4,778 79,434 9,551 158,785
Unisys Corp. + 540 7,020 2,012 26,156 6,381 82,953 4,260 55,380 8,691 112,983
VeriSign Inc. + 300 59,662 900 178,987 2,067 411,075 1,660 330,132 4,250 845,219
Veritas Software Corp. + 755 91,025 2,226 268,372 7,174 864,915 5,546 668,640 12,595 1,518,485
Vertel Corp. + 0 -- 4,800 61,800 0 -- 0 -- 0 --
WebTrends Corp. + 400 15,069 0 -- 0 -- 0 -- 1,300 48,973
--------- --------- ---------- ---------- ----------
1,879,840 9,545,056 29,858,432 23,467,116 52,873,778
--------- --------- ---------- ---------- ----------
COSMETICS / PERSONAL CARE
Percent of Net Assets 0.05% 0.40% 0.60 0.76% 0.88%
Alberto-Culver Co. "B" 1,192 33,748 0 -- 0 -- 852 24,122 1,499 42,440
Avon Products Inc. 150 5,878 1,519 59,526 3,921 153,654 3,160 123,833 7,309 286,421
Colgate-Palmolive Co. 88 4,482 3,396 172,984 9,648 491,445 7,422 378,058 16,416 836,190
Estee Lauder Companies Inc. "A" 0 -- 0 -- 702 28,738 1,050 42,984 2,274 93,092
Gillette Co. 97 2,910 6,132 183,960 17,728 531,840 13,673 410,190 30,077 902,310
International Flavors & Fragrances Inc. 156 4,017 2,703 69,602 1,714 44,135 1,278 32,908 2,944 75,808
Kimberly-Clark Corp. 0 -- 0 -- 9,212 538,902 6,891 403,123 13,207 772,609
Procter & Gamble Co. 0 -- 7,934 490,420 17,793 1,099,830 15,062 931,020 31,136 1,924,594
Tristar Corp. + 0 -- 3,700 21,275 0 -- 0 -- 0 --
--------- --------- ---------- ---------- ----------
51,035 997,767 2,888,544 2,346,238 4,933,464
--------- --------- ---------- ---------- ----------
DISTRIBUTION / WHOLESALE
Percent of Net Assets 0.02% 0.06% 0.10 0.12% 0.12%
Costco Wholesale Corp. + 450 15,497 3,022 104,070 7,946 273,640 5,798 199,669 12,392 426,750
Fastenal Co. 0 -- 0 -- 701 44,776 614 39,219 1,413 90,255
Genuine Parts Co. 0 -- 1,669 34,319 2,939 60,433 2,278 46,841 4,991 102,627
Grainger (W.W.) Inc. 72 2,079 854 24,659 1,642 47,413 1,235 35,661 2,636 76,114
Tech Data Corp. + 0 -- 0 -- 1,152 59,472 1,171 60,453 0 --
--------- --------- ---------- ---------- ----------
17,576 163,048 485,734 381,843 695,746
--------- --------- ---------- ---------- ----------
DIVERSIFIED FINANCIAL SERVICES
Percent of Net Assets 0.58% 1.96% 3.01 3.60% 4.31%
American Express Co. 693 40,974 8,102 479,031 22,521 1,331,554 16,454 972,843 34,168 2,020,183
Associates First Capital Corp. 272 7,650 4,556 128,137 11,427 321,384 9,474 266,456 19,601 551,278
Bear Stearns Companies Inc. 1 66 777 52,108 1,940 130,101 1,488 99,789 3,197 214,399
Capital One Financial Corp. 200 12,062 1,385 83,533 3,310 199,634 2,525 152,289 5,510 332,322
Charter Municipal Mortgage Acceptance Corp. 0 -- 3,900 52,894 0 -- 0 -- 0 --
Citigroup Inc. 2,263 132,083 26,253 1,532,538 64,143 3,744,328 53,135 3,101,736 111,143 6,487,953
Countrywide Credit Industries Inc. 94 3,560 2,495 94,498 1,857 70,334 1,631 61,774 3,214 121,730
Donaldson, Lufkin & Jenrette Inc. 0 -- 0 -- 0 -- 0 -- 1,325 117,262
E*trade Group Inc. + 0 -- 0 -- 2,300 40,825 0 -- 4,700 83,425
Edwards (A.G.) Inc. 0 -- 0 -- 2,313 120,276 2,201 114,452 4,649 241,748
Federal National Mortgage Association 0 -- 6,524 350,665 17,181 923,479 11,673 627,424 24,061 1,293,279
Finet Holdings Corp. + 0 -- 0 -- 34,900 19,631 0 -- 0 --
Franklin Resources Inc. 318 12,084 1,760 66,880 4,143 157,434 3,299 125,362 7,010 266,380
Freddie Mac 0 -- 0 -- 11,637 490,209 8,763 369,141 17,636 742,917
Goldman Sachs Group Inc. (The) 0 -- 0 -- 5,300 678,731 4,300 550,669 12,500 1,600,781
Household International Inc. 339 16,272 0 -- 7,903 379,344 6,122 293,856 12,821 615,408
Knight Trading Group Inc. + 0 -- 0 -- 900 28,237 0 -- 2,200 69,025
Legg Mason Inc. 0 -- 0 -- 1,327 69,999 1,150 60,662 2,661 140,368
Lehman Brothers Holdings Inc. 80 11,600 810 117,450 1,995 289,275 1,555 225,475 3,355 486,475
MBNA Corp. 516 18,221 5,380 189,981 13,312 470,080 10,282 363,083 22,306 787,681
Merrill Lynch & Co. Inc. 230 33,350 2,284 331,180 6,188 897,260 4,849 703,105 10,342 1,499,590
MicroFinancial Inc. 0 -- 2,200 21,587 0 -- 0 -- 0 --
Morgan (J.P.) & Co. Inc. 0 -- 0 -- 2,872 480,163 1,565 261,648 3,172 530,319
Morgan Stanley Dean Witter & Co. 888 95,515 6,692 719,808 19,082 2,052,508 14,356 1,544,167 29,644 3,188,583
Paine Webber Group Inc. 190 13,585 1,052 75,218 2,402 171,743 1,835 131,202 4,010 286,715
Price (T. Rowe) Associates 190 8,597 1,124 50,861 1,981 89,640 1,491 67,468 3,334 150,863
Providian Financial Corp. 97 11,149 907 104,248 2,348 269,873 1,739 199,876 4,340 498,829
Schwab (Charles) Corp. 801 30,588 7,355 280,869 20,944 799,799 15,926 608,174 37,828 1,444,557
Seacoast Financial Services Corp. 0 -- 5,200 52,650 0 -- 0 -- 0 --
Stilwell Financial Inc. + 266 12,868 1,322 63,952 3,644 176,278 2,808 135,837 6,206 300,215
Stockwalk.com Group Inc. + 0 -- 0 -- 3,500 19,250 0 -- 0 --
United Asset Management Corp. 3,800 93,100 0 -- 0 -- 1,596 39,102 0 --
USA Education Inc. 135 5,290 1,285 50,356 2,700 105,806 2,220 86,996 4,730 185,357
--------- --------- ---------- ---------- ----------
558,614 4,898,444 14,527,175 11,162,586 24,257,642
--------- --------- ---------- ---------- ----------
ELECTRIC
Percent of Net Assets 0.26% 0.85% 1.01% 1.06% 1.12%
AES Corp. + 400 25,500 2,150 137,062 6,962 443,828 5,360 341,700 11,490 732,487
</TABLE>
31
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Ameren Corp. 188 $ 7,602 752 $ 30,409 4,507 $ 182,248 1,755 $ 70,968 3,770 $ 152,449
American Electric Power Inc. 238 8,389 0 -- 12,591 443,833 4,207 148,297 6,424 226,446
Cinergy Corp. 157 4,612 967 28,406 2,696 79,195 2,086 61,276 4,494 132,011
CMS Energy Corp. 100 2,612 18,200 475,475 1,902 49,690 0 -- 2,890 75,501
Consolidated Edison Inc. 255 7,985 0 -- 3,733 116,890 2,947 92,278 3,813 119,395
Constellation Energy Group Inc. 67 2,563 819 31,327 2,533 96,887 1,939 74,167 4,157 159,005
CP&L Energy Inc. 143 5,291 963 35,631 2,709 100,233 2,024 74,888 4,524 167,388
Dominion Resources Inc. 345 18,285 0 -- 4,033 213,749 3,155 167,215 5,653 299,609
DTE Energy Co. 208 7,228 870 30,232 2,448 85,068 1,892 65,747 4,086 141,988
Duke Energy Corp. 341 25,511 0 -- 6,096 456,057 4,809 359,773 9,016 674,510
Edison International 237 4,903 0 -- 5,842 120,856 4,570 94,542 7,497 155,094
Entergy Corp. 250 7,609 1,431 43,556 4,105 124,946 3,239 98,587 6,884 209,532
FirstEnergy Corp. 260 6,435 1,315 32,546 3,950 97,762 3,125 77,344 6,485 160,504
Florida Progress Corp. 0 -- 510 26,456 1,687 87,513 1,200 62,250 2,800 145,250
FPL Group Inc. 211 11,262 0 -- 2,979 159,004 2,260 120,628 4,024 214,781
GPU Inc. 122 3,736 718 21,989 2,042 62,536 2,041 62,506 3,422 104,799
IPALCO Enterprises Inc. 0 -- 0 -- 10,246 238,860 0 -- 0 --
Niagara Mohawk Holdings Inc. + 1,771 22,802 26,522 341,471 5,297 68,199 4,316 55,569 4,949 63,718
PECO Energy Co. 232 11,179 0 -- 3,112 149,960 2,415 116,373 4,647 223,927
PG&E Corp. 346 10,012 0 -- 6,419 185,750 5,081 147,031 8,802 254,708
Pinnacle West Capital Corp. 0 -- 13,180 542,851 1,439 59,269 900 37,069 2,200 90,612
PP & L Resources Inc. 87 2,914 1,380 46,230 2,417 80,969 2,673 89,545 4,087 136,914
Public Service Enterprise Group Inc. 208 7,540 0 -- 3,689 133,726 2,806 101,718 3,919 142,064
Reliant Energy Inc. 234 8,687 1,093 40,578 4,999 185,588 3,860 143,303 8,307 308,397
Southern Co. 655 19,609 0 -- 13,625 407,898 8,741 261,684 15,790 472,713
TXU Corporation 0 -- 0 -- 4,648 162,389 3,626 126,683 7,576 264,687
Unicom Corp. 128 5,848 0 -- 3,677 167,993 2,799 127,879 5,107 233,326
Xcel Energy Inc. 245 6,140 9,824 246,201 5,561 139,361 4,146 103,909 9,283 232,655
------- --------- --------- --------- ---------
244,254 2,110,420 4,900,257 3,282,929 6,294,470
------- --------- --------- --------- ---------
ELECTRICAL COMPONENTS & EQUIPMENT
Percent of Net Assets 0.08% 0.03% 0.16% 0.21% 0.22%
American Power Conversion Corp. + 0 -- 1,224 29,146 3,270 77,867 2,774 66,056 8,732 207,931
Emerson Electric Co. 0 -- 0 -- 7,200 476,550 5,686 376,342 10,298 681,599
Energizer Holdings Inc. + 0 -- 1 20 0 -- 0 -- 0 --
Hubbell Inc. "B" 0 -- 0 -- 1,409 36,458 1,359 35,164 0 --
Molex Inc. 270 14,259 1,092 57,671 3,884 205,124 2,497 131,873 5,541 292,634
Power-One Inc. + 200 31,687 0 -- 0 -- 0 -- 0 --
Superconductor Technologies Inc. + 0 -- 0 -- 0 -- 1,900 42,037 3,000 66,375
UCAR International Inc. + 2,000 27,250 0 -- 0 -- 0 -- 0 --
------- --------- --------- --------- ---------
73,196 86,837 795,999 651,472 1,248,539
------- --------- --------- --------- ---------
ELECTRONICS
Percent of Net Assets 0.10% 0.66% 0.61% 0.76% 0.86%
Agilent Technologies Inc. + 386 23,281 2,213 133,472 6,455 389,317 5,015 302,467 11,132 671,399
Arrow Electronics Inc. + 0 -- 0 -- 2,190 79,661 1,961 71,331 4,572 166,306
Avnet Inc. 0 -- 0 -- 689 41,254 746 44,667 2,156 129,090
AVX Corp. 0 -- 0 -- 1,652 49,457 672 20,118 2,096 62,749
Jabil Circuit Inc. + 0 -- 0 -- 1,504 95,974 1,228 78,362 2,828 180,462
Johnson Controls Inc. 86 4,596 865 46,223 1,556 83,149 1,110 59,316 2,400 128,250
Microchip Technology Inc. + 0 -- 0 -- 1,872 127,413 1,642 111,759 4,257 289,742
Millipore Corp. 242 14,732 2,221 135,203 1,308 79,625 576 35,064 1,388 84,495
Parker Hannifin Corp. 0 -- 1,037 36,101 1,848 64,334 1,398 48,668 3,164 110,147
PE Corp. (Biosystems Group) 336 33,054 1,024 100,736 3,866 380,318 2,912 286,468 6,228 612,679
PerkinElmer Inc. 0 -- 4,593 413,083 1,572 141,382 608 54,682 1,297 116,649
Sanmina Corp. + 0 -- 880 103,840 1,502 177,236 1,228 144,904 2,980 351,640
SCI Systems Inc. + 0 -- 0 -- 2,104 129,922 2,658 164,131 6,030 372,352
Sensormatic Electronics Corp. + 0 -- 0 -- 0 -- 1,036 17,223 0 --
Solectron Corp. + 390 17,672 3,446 156,147 10,402 471,341 7,790 352,984 17,712 802,575
Symbol Technologies Inc. 0 -- 0 -- 2,688 111,216 2,877 119,036 5,962 246,678
Tektronix Inc. 0 -- 3,786 288,446 1,254 95,539 598 45,560 1,294 98,587
Thermo Electron Corp. + 211 4,906 6,572 152,799 4,345 101,021 2,479 57,637 5,182 120,482
Thomas & Betts Corp. 58 1,087 0 -- 1,545 28,969 743 13,931 1,484 27,825
Varian Inc. + 0 -- 0 -- 0 -- 1,395 68,006 1,659 80,876
Vishay Intertechnology Inc. + 0 -- 0 -- 1,672 67,403 1,353 54,543 3,166 127,629
Waters Corp. + 0 -- 1,008 80,199 3,004 239,006 2,700 214,819 800 63,650
------- --------- --------- --------- ---------
99,328 1,646,249 2,953,537 2,365,676 4,844,262
------- --------- --------- --------- ---------
ENGINEERING & CONSTRUCTION
Percent of Net Assets 0.00% 0.12% 0.01% 0.01% 0.01%
Fluor Corp. 113 3,383 9,664 289,316 1,279 38,290 956 28,620 2,168 64,904
Morrison Knudsen Corp. + 4 14 17 59 27 94 25 87 42 147
------- --------- --------- --------- ---------
3,397 289,375 38,384 28,707 65,051
------- --------- --------- --------- ---------
ENTERTAINMENT
Percent of Net Assets 0.06% 0.02% 0.02% 0.05% 0.02%
Churchill Downs Inc. 0 -- 1,300 30,712 0 -- 0 -- 0 --
</TABLE>
32
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Golden Books Family Entertainment Inc. + 1 $ 1 0 -- 2 $ 1 1 $ 1 0 --
International Game Technology Inc. + 663 19,227 0 -- 3,013 87,377 1,957 56,753 4,672 $ 135,488
Macrovision Corp. + 400 42,650 0 -- 0 -- 900 95,962 0 --
Steinway Musical Instruments Inc. + 0 -- 1,500 $ 26,625 0 -- 0 -- 0 --
61,878 57,337 87,378 152,716 135,488
ENVIRONMENTAL CONTROL
Percent of Net Assets 0.02% 0.01% 0.04% 0.05% 0.06%
Allied Waste Industries Inc. + 1,700 15,619 2,100 19,294 4,692 43,108 0 -- 5,023 46,149
Waste Management Inc. 0 -- 0 -- 8,230 155,856 7,648 144,834 15,534 294,175
15,619 19,294 198,964 144,834 340,324
FOOD
Percent of Net Assets 0.18% 0.34% 0.78% 0.96% 1.09%
Albertson's Inc. 185 3,977 0 -- 7,153 153,790 5,586 120,099 11,893 255,700
Archer-Daniels-Midland Co. 662 5,829 5,594 49,301 10,703 94,317 8,426 74,256 17,897 157,720
Bestfoods 191 13,489 0 -- 4,515 318,872 3,576 252,555 8,239 581,879
Campbell Soup Co. 280 7,105 0 -- 7,047 178,818 5,371 136,289 12,649 320,968
ConAgra Inc. 548 10,035 0 -- 8,207 150,291 6,463 118,354 12,966 237,440
Dean Foods Co. 0 -- 0 -- 2,758 86,187 815 25,469 0 --
Delhaize America Inc. "A" 0 -- 1,459 21,885 565 8,475 198 2,970 533 7,995
Dole Food Co. 0 -- 0 -- 0 -- 1,700 24,012 0 --
Flowers Industries Inc. 0 -- 0 -- 2,619 56,963 1,975 42,956 0 --
General Mills Inc. 200 6,425 0 -- 4,960 159,340 3,874 124,452 8,254 265,160
Great Atlantic & Pacific Tea Co. 3,159 44,226 0 -- 0 -- 0 -- 0 --
Heinz (H.J.) Co. 125 4,766 0 -- 5,910 225,319 4,512 172,020 10,061 383,576
Hershey Foods Corp. 159 6,787 1,650 70,434 2,328 99,377 1,809 77,222 3,803 162,341
Horizon Organic Holding Corp. + 0 -- 1,800 15,694 0 -- 0 -- 0 --
Hormel Foods Corp. 0 -- 0 -- 2,080 32,110 1,922 29,671 4,770 73,637
IBP Inc. 0 -- 0 -- 1,636 26,278 2,370 38,068 0 --
J & J Snack Foods Corp. + 0 -- 1,500 21,187 0 -- 0 -- 0 --
Keebler Foods Co. 0 -- 0 -- 0 -- 793 36,329 1,766 80,905
Kellogg Co. 256 5,936 0 -- 6,706 155,495 5,170 119,879 12,228 283,537
Kroger Co. + 232 5,263 0 -- 13,810 313,314 10,728 243,392 23,698 537,648
McCormick & Co. Inc. 0 -- 0 -- 1,451 42,351 1,333 38,907 3,163 92,320
Nabisco Group Holdings Corp. "A" 260 7,296 2,103 59,015 5,945 166,832 4,326 121,398 9,133 256,295
Nash Finch Co. 0 -- 2,700 26,325 0 -- 0 -- 0 --
Quaker Oats Co. 102 6,930 1,163 79,011 2,210 150,142 1,620 110,059 3,994 271,342
Ralston Purina Co. 195 4,412 2,688 60,816 4,901 110,885 3,840 86,880 9,039 204,507
Safeway Inc. + 468 23,078 0 -- 8,520 420,142 6,643 327,583 13,469 664,190
Sanderson Farms Inc. 0 -- 3,400 21,675 0 -- 0 -- 0 --
Sara Lee Corp. 0 -- 0 -- 14,999 279,356 11,646 216,907 26,464 492,892
Smithfield Foods Inc. + 0 -- 0 -- 0 -- 900 23,906 0 --
Suiza Foods Corp. + 0 -- 0 -- 0 -- 514 25,700 0 --
Super Value Inc. 86 1,285 10,754 160,638 2,940 43,916 2,037 30,428 3,712 55,448
Sysco Corp. 210 8,886 0 -- 5,525 233,777 4,223 178,686 9,974 422,025
Whole Foods Market Inc. + 0 -- 0 -- 1,401 70,750 625 31,562 0 --
Winn-Dixie Stores Inc. 146 2,035 12,749 177,689 5,153 71,820 3,750 52,266 4,136 57,646
Wrigley William Jr. Co. 74 5,481 1,279 94,726 1,834 135,831 1,419 105,095 3,544 262,477
------- ------- ------- --------- ---------
173,241 858,396 784,748 2,987,370 6,127,648
------- ------- ------- --------- ---------
FOREST PRODUCTS & PAPER
Percent of Net Assets 0.14% 0.17% 0.20% 0.26% 0.31%
Boise Cascade Corp. 59 1,763 0 -- 932 27,844 766 22,884 1,553 46,396
Bowater Inc. 0 -- 0 -- 1,460 75,007 1,146 58,876 2,904 149,193
Chesapeake Corp. 1,456 34,762 0 -- 0 -- 0 -- 0 --
Consolidated Papers Inc. 0 -- 0 -- 1,638 64,394 1,311 51,539 2,962 116,444
Fort James Corp. 0 -- 1,511 47,785 3,344 105,754 2,849 90,100 6,083 192,375
Georgia-Pacific (Timber Group) 0 -- 0 -- 2,557 74,952 1,639 48,043 4,878 142,986
Georgia-Pacific Corp. 0 -- 1,126 30,120 928 24,824 2,212 59,171 4,774 127,704
Glatfelter (P.H.) Co. 8,886 93,303 0 -- 0 -- 0 -- 0 --
International Paper Co. 0 -- 0 -- 7,246 230,966 6,239 198,868 12,568 400,605
Mead Corp. 102 2,735 935 25,070 1,746 46,815 1,310 35,124 2,762 74,056
Temple-Inland Inc. 49 2,079 4,445 188,635 916 38,873 739 31,361 1,565 66,415
Westvaco Corp. 56 1,533 3,412 93,404 1,728 47,304 1,327 36,327 2,724 74,570
Weyerhaeuser Co. 0 -- 0 -- 3,799 175,941 3,056 141,531 5,937 274,957
Willamette Industries Inc. 0 -- 970 29,585 1,832 55,876 1,413 43,096 3,126 95,343
------- ------- ------- --------- ---------
136,175 414,599 968,550 816,920 1,761,044
------- ------- ------- --------- ---------
GAS
Percent of Net Assets 0.18% 0.04% 0.02% 0.02% 0.03%
Berkshire Energy Resources 0 -- 800 30,150 0 -- 0 -- 0 --
Eastern Enterprises 0 -- 0 -- 0 -- 372 23,529 601 38,013
EnergySouth Inc. 0 -- 1,800 33,300 0 -- 0 -- 0 --
NICOR Inc. 1,644 60,623 0 -- 749 27,619 0 -- 1,239 45,688
Peoples Energy Corp. 3,453 112,222 0 -- 0 -- 0 -- 0 --
Sempra Energy 148 2,886 1,143 22,288 3,453 67,333 2,709 52,825 5,780 112,710
Southwestern Energy Company 0 -- 2,000 15,500 0 -- 0 -- 0 --
------- ------- ------- --------- ---------
175,731 101,238 94,952 76,354 196,411
------- ------- ------- --------- ---------
</TABLE>
33
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
HAND / MACHINE TOOLS
Percent of Net Assets 0.01% 0.13% 0.05% 0.03% 0.05%
Black & Decker Corp. 116 $ 4,647 716 $ 28,685 1,482 $ 59,373 1,124 $ 45,030 2,479 $ 99,315
Snap-On Inc. 38 1,171 0 -- 1,251 38,546 0 -- 1,643 50,625
SPX Corp. + 0 -- 0 -- 555 91,020 217 35,588 540 88,560
Stanley Works (The) 92 2,461 10,631 284,379 1,524 40,767 952 25,466 2,415 64,601
-------- --------- --------- --------- ----------
8,279 313,064 229,706 106,084 303,101
-------- --------- --------- --------- ----------
HEALTH CARE
Percent of Net Assets 0.51% 0.81% 1.24% 1.53% 1.83%
Apria Healthcare Group Inc. + 2,100 31,237 0 -- 0 -- 0 -- 0 --
Bard (C.R.) Inc. 143 6,980 0 -- 1,523 74,341 627 30,605 1,421 69,363
Bausch & Lomb Inc. 46 1,644 1,351 48,298 1,045 37,359 755 26,991 1,585 56,664
Baxter International Inc. 205 17,066 0 -- 4,830 402,097 3,856 321,012 8,183 681,235
Beckman Coulter Inc. 794 60,443 0 -- 2,745 208,963 519 39,509 1,484 112,969
Becton Dickinson & Co. 278 8,375 1,824 54,948 4,192 126,284 3,380 101,822 7,075 213,134
Biomet Inc. 168 5,681 1,464 49,502 3,677 124,312 2,140 72,359 4,815 162,807
Boston Scientific Corp. + 412 7,804 2,771 52,476 7,377 139,702 5,449 103,190 11,628 220,205
Foundation Health Systems + 0 -- 0 -- 2,902 50,966 3,122 54,830 0 --
Gentiva Health Services + 0 -- 1 11 0 -- 0 -- 0 --
Guidant Corp. + 197 13,261 1,728 116,316 5,274 355,006 3,904 262,788 9,361 630,112
HCA - The Healthcare Company 0 -- 0 -- 9,471 326,749 7,377 254,506 15,454 533,163
Health Management Associates
Inc. "A" + 0 -- 0 -- 2,964 48,350 3,776 61,596 12,290 200,481
Healthsouth Corp. + 390 2,389 5,810 35,586 9,907 60,680 8,824 54,047 10,865 66,548
Healthtronics Inc. + 0 -- 0 -- 100 1,375 0 -- 0 --
Hillenbrand Industries Inc. 0 -- 0 -- 0 -- 0 -- 2,473 86,091
Humana Inc. + 3,667 31,399 0 -- 0 -- 0 -- 0 --
IDEXX Laboratories Inc. + 0 -- 0 -- 0 -- 1,236 32,290 0 --
Johnson & Johnson 910 83,663 7,313 672,339 20,605 1,894,372 17,720 1,629,133 40,592 3,731,927
LCA-Vision Inc. + 0 -- 0 -- 11,400 34,912 0 -- 0 --
Lincare Holdings Inc. + 0 -- 0 -- 0 -- 1,514 38,607 0 --
Mallinckrodt Group Inc. 77 3,470 0 -- 2,238 100,850 870 39,204 1,927 86,835
Manor Care Inc. + 701 9,376 0 -- 0 -- 0 -- 0 --
Medtronic Inc. 782 40,078 6,328 324,310 20,068 1,028,485 15,244 781,255 36,188 1,854,635
Oakley Inc. + 3,200 54,200 0 -- 0 -- 0 -- 0 --
Oxford Health Plans Inc. + 400 12,200 8,480 258,640 865 26,382 1,696 51,728 3,468 105,774
PacifiCare Health Systems
Inc. "A" + 0 -- 0 -- 851 45,901 867 46,764 1,469 79,234
Photogen Technologies Inc. + 1,900 11,281 0 -- 0 -- 0 -- 0 --
Quest Diagnostics Inc. + 0 -- 0 -- 751 92,936 547 67,691 0 --
Quorum Health Group Inc. + 0 -- 4,100 52,787 0 -- 0 -- 0 --
SciQuest.com Inc. + 0 -- 0 -- 3,200 30,800 0 -- 0 --
St. Jude Medical Inc. + 332 13,155 6,461 256,017 2,030 80,439 1,004 39,784 2,185 86,581
Steris Corp. + 0 -- 0 -- 0 -- 2,007 20,572 0 --
Stryker Corp. 0 -- 0 -- 2,974 133,272 2,278 102,083 7,872 352,764
Tenet Healthcare Corp. 0 -- 0 -- 5,603 173,693 4,544 140,864 8,720 270,320
Triad Hospitals Inc. + 0 -- 1,000 28,875 0 -- 0 -- 0 --
UnitedHealth Group Inc. 157 14,836 0 -- 2,849 269,230 2,157 203,836 4,792 452,844
Universal Health Services + 0 -- 0 -- 501 35,446 614 43,440 0 --
Varian Medical Systems Inc. + 1,377 63,256 0 -- 0 -- 795 36,520 1,659 76,210
Wellpoint Health Networks
Inc. + 0 -- 940 81,134 1,061 91,578 977 84,327 1,785 154,068
-------- --------- --------- --------- ----------
491,794 2,031,239 5,994,480 4,741,353 10,283,964
-------- --------- --------- --------- ----------
HOLDING COMPANIES-DIVERSIFIED
Percent of Net Assets 0.00% 0.00% 0.16% 0.15% 0.25%
Berkshire Hathaway Inc. "A" + 0 -- 0 -- 11 634,700 8 461,600 24 1,384,800
Berkshire Hathaway Inc. "B" + 0 -- 0 -- 74 141,562 0 -- 26 49,738
-------- --------- --------- --------- ----------
-- -- 776,262 461,600 1,434,538
-------- --------- --------- --------- ----------
HOME BUILDERS
Percent of Net Assets 0.08% 0.00% 0.01% 0.01% 0.00%
Centex Corp. 104 3,003 0 -- 0 -- 0 -- 0 --
Clayton Homes Inc. 0 -- 0 -- 7,088 69,108 2,612 25,467 0 --
Kaufman & Broad Home Corp. 949 23,547 0 -- 0 -- 0 -- 0 --
Pulte Corp. 1,490 49,077 0 -- 0 -- 0 -- 0 --
-------- --------- --------- --------- ----------
75,627 -- 69,108 25,467 --
-------- --------- --------- --------- ----------
HOME FURNISHINGS
Percent of Net Assets 0.01% 0.05% 0.04% 0.05% 0.05%
Ethan Allen Interiors Inc. 0 -- 0 -- 2,101 56,596 1,071 28,850 0 --
Leggett & Platt Inc. 296 5,235 1,590 28,123 3,478 61,517 2,594 45,881 5,549 98,148
Maytag Corp. 66 2,516 1,724 65,728 1,319 50,287 1,024 39,040 2,509 95,656
Whirlpool Corp. 73 2,774 550 20,900 1,260 47,880 968 36,784 2,089 79,382
Zenith Electronics Corp. + 44 -- 89 -- 279 -- 230 -- 367 --
-------- --------- --------- --------- ----------
10,525 114,751 216,280 150,555 273,186
-------- --------- --------- --------- ----------
HOUSEHOLD PRODUCTS / WARES
Percent of Net Assets 0.07% 0.09% 0.11% 0.14% 0.15%
American Greetings Corp. "A" 1,023 19,053 0 -- 0 -- 3,100 57,737 0 --
</TABLE>
34
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Avery Dennison Corp. 70 $ 3,784 756 $ 40,871 1,782 $ 96,339 1,364 $ 73,741 3,428 $ 185,326
Clorox Co. 256 9,264 1,790 64,776 3,924 142,000 3,132 113,339 6,602 238,910
Dial Corp. 0 -- 0 -- 1,877 19,239 2,414 24,743 5,606 57,461
Enesco Group Inc. 0 -- 3,300 21,450 0 -- 0 -- 0 --
Fortune Brands Inc. 180 4,590 1,491 38,020 2,794 71,247 2,069 52,759 4,627 117,988
Newell Rubbermaid Inc. 205 5,317 2,217 57,503 4,757 123,385 3,756 97,421 7,904 205,010
Tupperware Corp. 1,163 23,478 0 -- 3,606 72,796 0 -- 1,927 38,901
Water Pik Technologies Inc. + 0 -- 0 -- 1 7 0 -- 0 --
-------- -------- -------- -------- --------
65,486 222,620 525,013 419,740 843,596
-------- -------- -------- -------- --------
INSURANCE
Percent of Net Assets 0.27% 0.83% 1.45% 1.93% 2.19%
Aetna Inc. 0 -- 1,135 63,489 2,118 118,476 1,861 104,100 3,819 213,625
AFLAC Inc. 0 -- 0 -- 4,448 240,192 3,328 179,712 6,791 366,714
Allmerica Financial Corp. 0 -- 0 -- 1,284 78,163 1,214 73,902 1,151 70,067
Allstate Corp. 0 -- 0 -- 10,951 318,263 9,091 264,207 18,789 546,055
AMBAC Financial Group Inc. 0 -- 0 -- 952 61,523 971 62,751 3,480 224,895
American Financial Group Inc. 0 -- 0 -- 0 -- 1,000 24,812 0 --
American General Corp. 0 -- 0 -- 4,122 300,133 3,046 221,787 5,918 430,904
American International Group 892 79,500 9,430 840,449 30,415 2,710,737 27,795 2,477,230 58,878 5,247,502
American Med Security Group + 0 -- 2,600 21,937 0 -- 0 -- 0 --
AON Corp. 245 9,142 1,743 65,017 4,289 160,015 3,388 126,396 7,171 267,568
Chubb Corp. 195 14,930 0 -- 2,923 223,792 2,270 173,797 4,842 370,716
CIGNA Corp. 117 11,378 0 -- 2,821 274,342 2,116 205,781 4,420 429,845
Cincinnati Financial Corp. 120 4,665 1,478 57,457 2,800 108,850 2,065 80,277 4,615 179,408
CNA Financial Corp. + 0 -- 0 -- 0 -- 0 -- 1,402 55,642
Conseco Inc. 0 -- 0 -- 4,761 40,171 0 -- 0 --
Fidelity National Financial Inc. 0 -- 1,400 27,912 0 -- 0 -- 0 --
Hancock (John) Financial Services Inc. + 0 -- 0 -- 2,800 70,700 0 -- 4,500 113,625
Hartford Financial Services Group Inc. 192 12,792 0 -- 3,450 229,856 2,806 186,950 6,060 403,747
HealthAxis Inc. + 0 -- 0 -- 8,600 24,456 0 -- 0 --
Horace Mann Educators Corp. 2,900 44,225 0 -- 0 -- 0 -- 0 --
Jefferson-Pilot Corp. 140 9,266 1,118 73,998 1,715 113,512 1,362 90,147 2,924 193,532
Lincoln National Corp. 238 12,852 1,662 89,748 3,268 176,472 2,560 138,240 5,502 297,108
Loews Corp. 0 -- 1,133 91,702 1,807 146,254 1,367 110,642 2,763 223,630
Markel Corp. + 0 -- 300 43,762 0 -- 0 -- 0 --
Marsh & McLennan Companies Inc. 220 26,125 1,667 197,956 4,490 533,188 3,483 413,606 7,350 872,813
MBIA Inc. 94 6,180 1,094 71,930 1,502 98,756 1,270 83,502 2,760 181,470
Mercury General Corp. 0 -- 0 -- 0 -- 900 24,694 0 --
MetLife Inc. + 0 -- 0 -- 1,500 36,469 1,700 41,331 5,700 138,581
MGIC Investment Corp. 95 5,587 834 49,050 1,611 94,747 1,363 80,161 2,939 172,850
MIIX Group Inc. (The) 0 -- 2,200 17,737 0 -- 0 -- 0 --
Old Republic International Corp. 0 -- 0 -- 3,124 74,781 2,824 67,599 0 --
Penn Treaty American Corp. + 0 -- 1,200 21,450 0 -- 0 -- 0 --
PICO Holdings Inc. + 0 -- 1,300 17,956 0 -- 0 -- 0 --
PMI Group Inc. (The) 0 -- 0 -- 621 38,502 504 31,248 1,722 106,764
Professionals Group Inc. + 0 -- 900 20,587 0 -- 0 -- 0 --
Progressive Corporation 75 5,686 625 47,383 1,034 78,390 918 69,596 2,101 159,282
Protective Life Corp. 0 -- 0 -- 1,302 37,432 1,239 35,621 0 --
Radian Group Inc. 0 -- 0 -- 526 32,678 536 33,299 0 --
Reliastar Financial Corp. 0 -- 0 -- 1,865 100,360 1,796 96,647 4,881 262,659
SAFECO Corp. 156 4,105 1,600 42,100 2,167 57,019 1,688 44,416 3,678 96,777
Selective Insurance Group Inc. 0 -- 0 -- 0 -- 4,400 78,925 0 --
St. Paul Companies Inc. 164 7,810 1,550 73,819 3,858 183,737 3,070 146,209 6,378 303,752
Torchmark Corp. 142 3,985 2,832 79,473 2,166 60,783 1,713 48,071 3,704 103,943
Transatlantic Holdings Inc. 0 -- 0 -- 366 31,911 437 38,101 836 72,889
21st Century Insurance Group 0 -- 0 -- 3,016 47,690 1,864 29,474 0 --
Unitrin Inc. 0 -- 0 -- 1,402 42,673 1,328 40,421 2,926 89,060
UNUMProvident Corp. 0 -- 2,154 46,715 3,269 70,896 3,175 68,858 6,643 144,070
-------- --------- --------- --------- ----------
258,228 2,061,627 7,015,919 5,992,510 12,339,493
-------- --------- --------- --------- ----------
IRON / STEEL
Percent of Net Assets 0.00% 0.13% 0.03% 0.02% 0.03%
AK Steel Holding Corp. 0 -- 0 -- 0 -- 0 -- 1 8
Allegheny Technologies Inc. 0 -- 14,329 311,656 2,491 54,182 1,406 30,581 2,619 56,963
Nucor Corp. 0 -- 599 22,013 1,486 54,610 1,135 41,711 2,482 91,213
USX-U.S. Steel Group Inc. 126 2,189 0 -- 2,799 48,633 0 -- 2,147 37,304
-------- -------- -------- --------- ---------
2,189 333,669 157,425 72,292 185,488
-------- -------- -------- --------- ---------
LEISURE TIME
Percent of Net Assets 0.03% 0.06% 0.15% 0.16% 0.18%
Brunswick Corp. 126 2,362 0 -- 3,492 65,475 1,925 36,094 2,595 48,656
Callaway Golf Co. 0 -- 0 -- 5,116 73,862 1,846 26,652 0 --
Carnival Corp. "A" 570 11,364 0 -- 9,990 199,176 8,059 160,676 17,278 344,480
Galileo International Inc. 0 -- 0 -- 0 -- 1,093 20,357 1,855 34,549
Harley-Davidson Inc. 192 9,564 2,100 104,606 5,382 268,091 3,954 196,959 9,340 465,249
Sabre Holdings Corp. 296 8,251 1,477 41,171 3,853 107,402 1,838 51,234 3,617 100,824
-------- -------- -------- --------- ---------
31,541 145,777 714,006 491,972 993,758
-------- -------- -------- --------- ---------
</TABLE>
35
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
LODGING
Percent of Net Assets 0.12% 0.02% 0.12% 0.15% 0.17%
Ameristar Casinos Inc. + 0 -- 4,200 $ 19,162 0 -- 0 -- 0 --
Choice Hotels International Inc. + 3,359 $ 30,021 0 -- 0 -- 0 -- 0 --
Extended Stay America Inc. + 4,900 72,581 0 -- 0 -- 0 -- 0 --
Harrah's Entertainment Inc. + 148 4,199 0 -- 2,132 $ 60,496 1,432 $ 40,633 3,493 $ 99,114
Hilton Hotels Corp. 300 3,000 3,500 35,000 6,155 61,550 5,423 54,230 12,006 120,060
Mandalay Resort Group Inc. + 0 -- 0 -- 2,111 58,712 2,198 61,132 0 --
Marriott International Inc. 0 -- 0 -- 4,145 163,727 3,306 130,587 6,982 275,789
MGM Grand Inc. 0 -- 0 -- 402 13,819 498 17,119 752 25,850
Park Place Entertainment Corp. + 0 -- 0 -- 4,986 73,232 3,859 56,679 9,868 144,936
Starwood Hotels & Resorts Worldwide
Inc. 0 -- 0 -- 3,890 124,480 3,297 105,504 9,493 303,776
------- --------- ---------- --------- ----------
109,801 54,162 556,016 465,884 969,525
------- --------- ---------- --------- ----------
MACHINERY
Percent of Net Assets 0.18% 0.04% 0.17% 0.21% 0.23%
Briggs & Stratton Corp. 442 19,116 0 -- 0 -- 0 -- 0 --
Caterpillar Inc. 0 -- 0 -- 6,010 220,867 4,698 172,652 9,274 340,819
Cognex Corp. + 0 -- 0 -- 1,614 64,560 1,036 41,440 1,248 49,920
Deere & Co. 0 -- 0 -- 3,875 127,633 3,092 101,843 6,570 216,399
Dover Corp. 185 9,042 1,113 54,398 3,422 167,250 2,648 129,421 5,694 278,294
Flowserve Corp. 3,000 55,500 0 -- 0 -- 0 -- 0 --
Imation Corp. + 0 -- 0 -- 0 -- 653 14,529 0 --
Ingersoll-Rand Co. 0 -- 0 -- 2,792 127,211 2,087 95,089 4,592 209,223
Nordson Corp. 1,014 65,656 0 -- 0 -- 0 -- 0 --
Rockwell International Corp. 0 -- 1,300 52,569 2,869 116,015 2,473 100,002 5,296 214,157
Tecumseh Products Co. "A" 541 21,505 0 -- 0 -- 0 -- 0 --
------- --------- ---------- --------- ----------
170,819 106,967 823,536 654,976 1,308,812
------- --------- ---------- --------- ----------
MANUFACTURERS
Percent of Net Assets 0.43% 1.66% 2.62% 3.20% 3.88%
Cooper Industries Inc. 0 -- 674 23,801 1,623 57,312 1,240 43,788 2,677 94,532
Crane Co. 120 3,015 0 -- 1,887 47,411 796 20,000 1,882 47,285
Danaher Corp. 190 10,676 867 48,715 2,503 140,637 1,845 103,666 3,991 224,244
Eastman Kodak Co. 0 -- 0 -- 5,266 327,808 4,106 255,599 7,936 494,016
Eaton Corp. 76 5,045 439 29,139 1,239 82,239 959 63,654 2,054 136,334
FMC Corp. + 0 -- 0 -- 508 34,449 0 -- 0 --
General Electric Co. 4,729 277,533 50,806 2,981,677 156,302 9,172,974 124,034 7,279,245 284,826 16,715,726
Harsco Corp. 0 -- 0 -- 0 -- 1,012 28,146 0 --
Illinois Tool Works Inc. 0 -- 0 -- 5,004 280,537 3,928 220,214 7,798 437,175
ITT Industries Inc. 126 4,237 6,741 226,666 1,841 61,904 1,164 39,140 2,482 83,457
M&F Worldwide Corp. + 0 -- 3,900 21,206 0 -- 0 -- 0 --
Minnesota Mining & Manufacturing Co. 0 -- 0 -- 6,707 623,751 5,259 489,087 9,216 857,088
National Service Industries Inc. 2,439 48,628 0 -- 0 -- 0 -- 0 --
Pall Corp. 113 2,415 11,542 246,710 2,120 45,315 1,583 33,837 3,508 74,984
Pentair Inc. 0 -- 0 -- 756 24,570 0 -- 1,766 57,395
Textron Inc. 0 -- 0 -- 2,516 141,053 1,954 109,546 3,738 209,562
Tyco International Ltd. 1,114 63,498 9,804 558,828 27,956 1,593,492 21,166 1,206,462 42,982 2,449,974
U.S. Industries Inc. 0 -- 0 -- 0 -- 2,236 28,509 0 --
------- --------- ---------- --------- ----------
415,047 4,136,742 12,633,452 9,920,893 21,881,772
------- --------- ---------- --------- ----------
MEDIA
Percent of Net Assets 0.41% 1.05% 1.80% 2.26% 2.70%
AT&T - Liberty Media Group "A" + 0 -- 0 -- 35,200 752,400 28,300 604,913 92,988 1,987,618
Belo (A.H.) Corp. 0 -- 0 -- 3,878 74,167 2,875 54,984 0 --
Cablevision Systems Corp. + 0 -- 780 52,455 1,890 127,102 1,886 126,834 500 33,625
Chris-Craft Industries Inc. + 0 -- 1 78 0 -- 825 64,556 1 78
Clear Channel Communications Inc. + 233 16,863 2,201 159,297 7,964 576,377 6,279 454,425 15,687 1,135,321
Comcast Corp. "A" + 600 22,350 5,898 219,700 15,500 577,375 11,824 440,444 28,130 1,047,842
Disney (Walt) Co. 2,049 79,783 12,261 477,413 34,743 1,352,806 26,284 1,023,433 55,303 2,153,361
Dow Jones & Co. Inc. 64 4,004 758 47,422 2,120 132,633 1,289 80,643 2,655 166,103
5th Avenue Channel Corp. + 0 -- 0 -- 63,300 25,716 0 -- 0 --
Gannett Co. Inc. 298 16,874 0 -- 4,701 266,194 3,686 208,720 7,809 442,185
Gray Communications Systems Inc. 0 -- 2,000 22,500 0 -- 0 -- 0 --
Harcourt General Inc. 79 4,686 5,557 329,600 1,994 118,269 1,476 87,545 1,888 111,982
Hearst-Argyle Television Inc. + 0 -- 0 -- 0 -- 3,050 65,956 0 --
Hispanic Broadcasting Corp. + 0 -- 0 -- 2,428 62,369 1,550 39,816 2,274 58,413
Hollinger International Inc. 0 -- 0 -- 0 -- 3,500 57,313 0 --
Infinity Broadcasting Corp. + 0 -- 0 -- 2,205 83,514 2,792 105,747 5,743 217,516
Knight Ridder Inc. 124 6,773 702 38,347 1,634 89,257 1,151 62,873 2,348 128,260
McGraw-Hill Companies Inc. 202 12,511 0 -- 3,290 203,774 2,554 158,188 5,480 339,418
Meredith Corp. 1,382 37,746 0 -- 0 -- 1,798 49,108 1,371 37,445
New York Times Co. "A" 162 6,348 1,323 51,845 2,827 110,783 2,204 86,369 4,801 188,139
Rare Medium Group Inc. + 0 -- 0 -- 0 -- 0 -- 4,600 46,000
Readers Digest Association "A" 0 -- 0 -- 2,028 78,078 1,975 76,038 3,998 153,923
Scripps (E.W.) Company 0 -- 0 -- 0 -- 925 46,886 1,237 62,700
</TABLE>
36
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Time Warner Inc. 844 $ 72,162 6,991 $ 597,730 21,333 $ 1,823,971 16,384 $ 1,400,832 39,102 $ 3,343,221
Tribune Co. 396 14,132 2,268 80,939 5,342 190,643 4,172 148,888 8,909 317,940
UnitedGlobalCom Inc. "A" + 0 -- 0 -- 0 -- 2,000 76,625 0 --
Univision Communications
Inc. + 0 -- 0 -- 2,676 118,078 892 39,360 1,966 86,750
USA Networks Inc. + 0 -- 0 -- 3,778 90,908 2,622 63,092 10,690 257,228
Viacom Inc. "B" + 1,451 97,670 8,252 555,463 25,527 1,718,286 19,886 1,338,576 42,627 2,869,330
Washington Post Company
(The) "B" 0 -- 0 -- 258 131,322 119 60,571 87 44,283
------- --------- --------- --------- ----------
391,902 2,632,789 8,704,022 7,022,735 15,228,681
------- --------- --------- --------- ----------
METAL FABRICATE / HARDWARE
Percent of Net Assets 0.11% 0.00% 0.02% 0.00% 0.00%
Precision Castparts Corp. 700 53,200 0 -- 1,026 77,976 0 -- 0 --
Timken Co. 1,342 21,891 0 -- 0 -- 0 -- 0 --
Worthington Industries
Inc. 3,277 34,204 0 -- 0 -- 0 -- 0 --
------- --------- --------- --------- ----------
109,295 -- 77,976 -- --
------- --------- --------- --------- ----------
MINING
Percent of Net Assets 0.07% 0.03% 0.14% 0.16% 0.18%
Alcoa Inc. 458 15,229 0 -- 14,518 482,723 11,286 375,259 22,770 757,103
Freeport-McMoRan Copper &
Gold Inc. + 0 -- 0 -- 0 -- 0 -- 4,961 48,680
Homestake Mining Company 6,842 38,059 0 -- 0 -- 0 -- 5,811 32,324
Newmont Mining Corp. 487 9,031 2,011 37,329 6,953 129,056 4,933 91,569 4,696 87,170
Phelps Dodge Corp. 125 5,562 594 26,433 1,471 65,460 1,021 45,435 2,242 99,769
------- --------- --------- --------- ----------
67,881 63,762 677,239 512,263 1,025,046
------- --------- --------- --------- ----------
OFFICE / BUSINESS EQUIPMENT
Percent of Net Assets 0.02% 0.05% 0.11% 0.12% 0.13%
HON Industries Inc. 0 -- 0 -- 2,999 80,786 1,068 28,769 0 --
Miller (Herman) Inc. 0 -- 0 -- 2,476 79,077 2,246 71,732 4,840 154,577
Pitney Bowes Inc. 166 6,069 1,521 55,612 5,593 204,494 3,389 123,910 8,049 294,292
Xerox Corp. 620 9,959 3,842 61,712 1,460 184,076 8,604 138,202 18,620 299,084
------- --------- --------- --------- ----------
16,028 117,324 548,433 362,613 747,953
------- --------- --------- --------- ----------
OIL & GAS PRODUCERS
Percent of Net Assets 0.41% 1.25% 1.91% 2.34% 2.61%
Amerada Hess Corp. 122 8,349 905 61,936 2,764 189,161 1,411 96,565 2,523 172,668
Anadarko Petroleum Corp. 272 17,889 1,676 110,231 3,927 258,279 3,442 226,380 6,790 446,578
Apache Corp. 96 6,048 918 57,834 1,786 112,518 1,748 110,124 3,219 202,797
Burlington Resources Inc. 194 7,627 1,791 70,409 3,373 132,601 3,034 119,274 6,122 240,671
Chevron Corp. 560 47,320 4,160 351,520 11,023 931,443 8,071 682,000 14,799 1,250,515
Coastal Corp. 244 16,805 1,468 101,108 3,607 248,432 2,730 188,029 5,945 409,462
Conoco Inc. 600 15,675 4,270 111,554 10,470 273,529 8,190 213,964 17,480 456,665
Devon Energy Corp. 0 -- 484 28,344 1,232 72,149 1,500 87,844 1,759 103,011
Diamond Offshore Drilling
Inc. 0 -- 0 -- 965 43,244 1,507 67,532 3,656 163,834
ENSCO International Inc. 0 -- 0 -- 1,919 76,520 2,793 111,371 6,889 274,699
EOG Resources Inc. 0 -- 0 -- 865 33,086 1,618 61,889 3,745 143,246
Exxon Mobil Corp. 1,848 150,843 20,171 1,646,458 53,517 4,368,325 40,286 3,288,345 82,927 6,768,916
Global Marine Inc. + 0 -- 0 -- 1,807 58,389 3,164 102,237 8,423 272,168
Kerr-McGee Corp. 97 6,129 808 51,056 1,644 103,880 1,306 82,523 2,641 166,878
Murphy Oil Corp. 0 -- 0 -- 1,432 95,586 1,379 92,048 2,293 153,058
Nabors Industries Inc. + 0 -- 0 -- 1,766 83,995 2,058 97,884 4,893 232,723
Noble Affiliates Inc. 0 -- 0 -- 1,791 69,401 1,812 70,215 0 --
Noble Drilling Corp. + 0 -- 0 -- 1,656 80,316 2,525 122,463 6,548 317,578
Occidental Petroleum
Corp. 0 -- 2,905 62,821 7,222 156,176 5,444 117,727 10,295 222,629
Ocean Energy Inc. + 0 -- 0 -- 3,282 49,845 3,588 54,493 7,694 116,853
Penn Virginia Corp. 0 -- 1,300 35,506 0 -- 0 -- 0 --
Phillips Petroleum Co. 0 -- 0 -- 4,331 267,981 3,345 206,972 7,074 437,704
Pioneer Natural
Resources Co. + 0 -- 0 -- 5,009 69,500 0 -- 0 --
R&B Falcon Corporation + 0 -- 0 -- 2,744 78,204 2,387 68,030 5,637 160,654
Rowan Companies Inc. + 1,466 45,446 0 -- 1,579 48,949 997 30,907 2,269 70,339
Sunoco Inc. 105 2,855 0 -- 1,753 47,660 1,191 32,380 2,537 68,975
Texaco Inc. 502 25,853 3,761 193,691 9,227 475,190 7,218 371,727 14,003 721,154
Tosco Corp. 261 7,961 0 -- 2,670 81,435 2,252 68,686 4,080 124,440
Transocean Sedco Forex Inc. 241 14,399 1,645 98,289 3,521 210,375 2,678 160,005 5,903 352,704
Ultramar Diamond
Shamrock Corp. 0 -- 0 -- 8,515 199,570 2,264 53,063 4,827 113,133
Unocal Corp. 204 6,809 1,946 64,948 4,030 134,501 3,181 106,166 6,814 227,417
USX-Marathon Group Inc. 255 6,997 2,350 64,478 5,179 142,099 4,106 112,658 8,667 237,801
Valero Energy Corp. 0 -- 0 -- 0 -- 1,236 37,235 0 --
Vastar Resources Inc. 0 -- 0 -- 538 44,519 0 -- 783 64,793
-------- ---------- ---------- --------- ----------
387,005 3,110,183 9, 236,858 7,240,736 14,694,063
-------- ---------- ---------- --------- ----------
OIL & GAS SERVICES
Percent of Net Assets 0.08% 0.23% 0.37% 0.47% 0.56%
Baker Hughes Inc. 299 10,932 2,790 102,009 5,518 201,752 3,806 139,157 7,421 271,330
BJ Services Co. + 0 -- 0 -- 1,041 69,747 1,596 106,932 4,210 282,070
Cooper Cameron Corp. + 0 -- 0 -- 1,140 88,706 1,061 82,559 2,385 185,583
Grant Prideco Inc. + 0 -- 0 -- 2,120 49,820 2,413 56,706 4,267 100,274
Halliburton Co. 465 24,645 3,455 183,115 7,384 391,352 5,161 273,533 10,489 555,917
Schlumberger Ltd. 461 39,329 3,335 284,517 9,171 782,401 7,183 612,800 14,513 1,238,140
</TABLE>
37
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Smith International Inc. + 0 -- 0 -- 637 $ 50,641 1,095 $ 87,053 2,696 $ 214,332
Tidewater Inc. 0 -- 0 -- 524 21,156 0 -- 3,084 124,516
Varco International Inc. + 0 -- 0 -- 3,126 63,106 602 12,153 0 --
Weatherford International Inc. + 0 -- 0 -- 1,220 57,264 2,113 99,179 4,267 200,282
-------- --------- ---------- ---------- ----------
$ 74,906 $ 569,641 1,775,945 1,470,072 3,172,444
-------- --------- ---------- ---------- ----------
PACKAGING & CONTAINERS
Percent of Net Assets 0.07% 0.21% 0.06% 0.07% 0.09%
Ball Corp. 744 25,761 0 -- 0 -- 0 -- 0 --
Bemis Co. 42 1,407 0 -- 850 28,475 662 22,177 1,459 48,876
Crown Cork & Seal Co. Inc. 0 -- 21,314 275,750 5,339 69,073 3,010 38,942 3,697 47,830
Owens-Illinois Inc. + 136 1,777 15,718 205,316 4,731 61,799 0 -- 4,190 54,732
Pactiv Corp. + 3,208 35,288 0 -- 0 -- 2,382 26,202 4,872 53,592
Sealed Air Corp. + 57 2,925 705 36,175 1,312 67,322 999 51,261 2,468 126,639
Smurfit-Stone Container Corp. + 0 -- 0 -- 1,737 22,798 2,712 35,595 6,314 82,871
Sonoco Products Co. 0 -- 0 -- 1,823 35,207 2,018 38,973 5,617 108,478
-------- --------- ---------- ---------- ----------
67,158 517,241 284,674 213,150 523,018
-------- --------- ---------- ---------- ----------
PHARMACEUTICALS
Percent of Net Assets 0.90% 2.25% 3.49% 4.20% 5.24%
Abbott Laboratories 1,003 43,881 8,434 368,987 25,806 1,129,013 19,659 860,081 46,607 2,039,056
Abgenix Inc. + 400 30,069 600 45,103 1,600 120,275 1,600 120,275 3,100 233,033
Allergan Inc. 310 22,669 868 63,473 3,168 231,660 1,646 120,364 3,976 290,745
ALZA Corp. + 87 6,579 704 53,240 2,058 155,636 1,231 93,094 2,911 220,144
American Home Products Corp. 1,295 70,173 6,973 377,849 21,928 1,188,224 16,930 917,394 36,491 1,977,356
Amylin Pharmaceuticals Inc. + 0 -- 7,900 107,144 0 -- 0 -- 0 --
Bergen Brunswig Corp. "A" 6,759 63,366 0 -- 1 8 0 -- 0 --
Bristol-Myers Squibb Co. 1,298 68,794 10,658 564,874 31,714 1,680,842 25,220 1,336,660 58,792 3,115,976
Cardinal Health Inc. 311 25,444 1,762 144,154 4,943 404,399 3,754 307,124 7,857 642,801
Cell Therapeutics Inc. + 0 -- 1,900 88,350 0 -- 0 -- 0 --
Dentsply International Inc. 0 -- 0 -- 4,252 141,910 971 32,407 0 --
Forest Laboratories Inc. "A" + 0 -- 0 -- 1,255 122,833 1,225 119,897 4,004 391,891
Gilead Sciences Inc. + 0 -- 0 -- 500 54,000 0 -- 0 --
Hyseq Inc. + 400 16,775 0 -- 0 -- 0 -- 1,400 58,712
ICN Pharmaceuticals Inc. 0 -- 0 -- 2,107 59,654 1,939 54,898 3,963 112,202
IVAX Corporation + 0 -- 0 -- 3,054 105,745 2,629 91,029 5,443 188,464
Lilly (Eli) and Company 714 52,122 5,921 432,233 18,618 1,359,114 14,142 1,032,366 33,130 2,418,490
Medarex Inc. + 0 -- 900 99,450 800 88,400 0 -- 1,600 176,800
MedImmune Inc. + 0 -- 1,184 99,604 4,500 378,562 3,000 252,375 5,100 429,037
Merck & Co. Inc. 1,526 106,629 12,112 846,326 35,930 2,510,609 29,690 2,074,589 68,452 4,783,083
Mylan Laboratories Inc. 0 -- 0 -- 2,748 72,994 2,156 57,269 6,529 173,427
Omnicare Inc. 0 -- 0 -- 2,465 33,740 2,643 36,176 0 --
Pfizer Inc. 4,906 212,185 32,577 1,408,955 101,504 4,390,048 80,388 3,476,781 186,283 8,056,740
Pharmacia & Upjohn Inc. 1,194 69,924 7,441 435,764 20,952 1,227,002 16,231 950,528 33,490 1,961,258
Schering-Plough Corp. 961 38,560 7,898 316,907 25,426 1,020,218 18,753 752,464 44,536 1,787,007
Sepracor Inc. + 0 -- 704 77,440 1,500 165,000 1,272 139,920 1,300 143,000
Sybron International Corp. + 0 -- 0 -- 1,841 41,883 2,389 54,350 5,599 127,377
Tanox Inc. + 0 -- 0 -- 0 -- 800 37,200 0 --
Watson Pharmaceutical Inc. + 490 30,227 1,480 91,298 2,850 175,809 1,499 92,470 2,685 165,631
-------- --------- ---------- ---------- ----------
857,397 5,621,151 16,857,578 13,009,711 29,492,230
-------- --------- ---------- ---------- ----------
PIPELINES
Percent of Net Assets 0.11% 0.25% 0.40% 0.43% 0.48%
Columbia Energy Group 142 9,932 692 48,535 1,384 97,140 1,055 74,048 2,286 160,449
EL Paso Energy Corp. 222 12,932 1,366 79,570 3,876 225,777 2,924 170,323 6,386 371,984
Enron Corp. 676 57,376 4,306 365,472 12,010 1,019,349 9,312 790,356 19,000 1,612,625
Questar Corp. 0 -- 0 -- 10,658 231,145 1,657 35,936 0 --
Williams Companies Inc. 450 20,728 2,968 136,714 7,264 334,598 5,674 261,359 12,202 562,055
-------- --------- ---------- ---------- ----------
100,968 630,291 1,908,009 1,332,022 2,707,113
-------- --------- ---------- ---------- ----------
REAL ESTATE
Percent of Net Assets 0.00% 0.01% 0.02% 0.00% 0.01%
Catellus Development Corp. + 0 -- 0 -- 5,741 102,620 0 -- 0 --
CB Richard Ellis Services + 0 -- 1,400 14,700 0 -- 0 -- 0 --
St. Joe Company (The) 0 -- 0 -- 0 -- 0 -- 1,502 44,027
-------- --------- ---------- ---------- ----------
-- 14,700 102,620 -- 44,027
-------- --------- ---------- ---------- ----------
REAL ESTATE INVESTMENT TRUSTS
Percent of Net Assets 0.00% 0.25% 0.34% 0.38% 0.34%
Alexandria Real Estate Equity 0 -- 1,400 49,000 0 -- 0 -- 0 --
Ameresco Capital Trust 0 -- 3,300 35,475 0 -- 0 -- 0 --
American Industrial Properties 0 -- 2,500 33,906 0 -- 0 -- 0 --
Apartment Investment &
Management Co. "A" 0 -- 0 -- 3,752 168,371 971 43,574 0 --
Archstone Communities Trust 0 -- 0 -- 6,553 161,368 2,568 63,237 6,041 148,760
Arden Realty Inc. 0 -- 0 -- 0 -- 2,139 54,545 0 --
AvalonBay Communities Inc. 0 -- 0 -- 3,890 173,834 1,329 59,390 0 --
Boston Properties Inc. 0 -- 0 -- 0 -- 971 39,265 2,320 93,815
Capital Automotive 0 -- 0 -- 200 2,775 0 -- 0 --
</TABLE>
38
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
Capstead Mortgage Corp. 0 -- 2,200 $ 18,838 0 -- 0 -- 0 --
CarrAmerica Realty Corp. 0 -- 0 -- 0 -- 1,639 $ 47,633 0 --
Crescent Real Estate Equities Co. 0 -- 0 -- 0 -- 2,568 56,817 6,141 135,870
Crown American Realty Trust 0 -- 8,900 52,844 0 -- 0 -- 0 --
Duke-Weeks Realty Corp. 0 -- 0 -- 6,428 $ 152,665 1,975 46,906 4,186 99,417
Equity Office Properties Trust 0 -- 0 -- 8,798 254,042 5,918 170,882 13,787 398,100
Equity Residential Properties Trust 0 -- 0 -- 2,491 119,568 2,032 97,536 4,693 225,264
First Washington Realty Trust 0 -- 2,800 56,350 0 -- 0 -- 0 --
Highwoods Properties Inc. 0 -- 0 -- 0 -- 2,318 55,777 0 --
Host Marriott Corp. 0 -- 0 -- 14,539 155,386 6,558 70,089 10,596 113,245
Kimco Realty Corp. 0 -- 0 -- 0 -- 1,150 46,719 2,473 100,466
Koger Equity Inc. 0 -- 3,200 54,800 0 -- 0 -- 0 --
Konover Property Trust Inc. 0 -- 5,400 22,613 0 -- 0 -- 0 --
Mack-Cali Realty Corp. 0 -- 0 -- 0 -- 1,629 42,659 0 --
Mid-America Apartment
Communities Inc. 0 -- 2,800 67,725 0 -- 0 -- 0 --
Parkway Properties Inc. 0 -- 1,700 53,975 0 -- 0 -- 0 --
Prison Realty Trust Inc. 0 -- 6,200 14,725 0 -- 0 -- 0 --
Public Storage Inc. 0 -- 0 -- 0 -- 2,064 50,310 4,363 106,348
Rouse Co. 0 -- 0 -- 0 -- 2,418 58,334 3,480 83,955
Senior Housing Properties Trust 0 -- 1 5 0 -- 0 -- 0 --
Simon Property Group Inc. 0 -- 0 -- 7,528 171,732 1,975 45,058 4,175 95,242
Spieker Properties Inc. 0 -- 0 -- 2,715 148,307 1,239 67,680 2,938 160,488
Thornbury Mortgage Inc. 0 -- 3,900 31,931 0 -- 0 -- 0 --
Vornado Realty Trust 0 -- 0 -- 3,878 143,486 1,507 55,759 3,568 132,016
Washington Trust 0 -- 3,400 65,238 0 -- 0 -- 0 --
Winston Hotels Inc. 0 -- 7,200 62,550 0 -- 0 -- 0 --
------ ------- --------- --------- ---------
-- 619,975 1,651,534 1,172,170 1,892,986
------ ------- --------- --------- ---------
RETAIL
Percent of Net Assets 0.75% 1.50% 2.38% 2.95% 3.34%
Abercrombie & Fitch Co. + 0 -- 0 -- 0 -- 2,534 58,757 0 --
Amazon.com Inc. + 700 $ 29,050 1,556 64,574 2,778 115,287 2,608 108,232 6,410 266,015
AnnTaylor Stores Corp. + 747 26,892 0 -- 0 -- 0 -- 0 --
AutoNation Inc. + 0 -- 0 -- 7,189 46,728 7,222 46,943 20,198 131,287
AutoZone Inc. + 126 2,835 1,441 32,423 2,871 64,597 2,593 58,343 3,883 87,367
Barnes & Noble Inc. + 0 -- 0 -- 0 -- 1,861 32,219 0 --
Barnett Inc. + 0 -- 1,600 19,900 0 -- 0 -- 0 --
Bed Bath & Beyond Inc. + 200 3,513 2,240 39,340 5,458 95,856 4,564 80,155 8,406 147,630
Best Buy Co. Inc. + 130 8,028 1,200 74,100 3,434 212,049 2,698 166,602 6,266 386,925
BJ's Wholesale Club Inc. + 0 -- 0 -- 1,472 49,864 1,456 49,322 0 --
Bob Evans Farms Inc. 5,268 89,556 0 -- 0 -- 0 -- 0 --
Borders Group Inc. + 0 -- 0 -- 3,165 42,134 2,996 39,884 0 --
Boston Chicken Inc. + 600 6 500 5 700 7 700 7 0 --
Brinker International Inc. + 0 -- 0 -- 1,740 55,245 1,045 33,179 0 --
Cato Corp. "A" 0 -- 1,600 19,800 0 -- 0 -- 0 --
CBRL Group Inc. 2,949 35,572 0 -- 0 -- 0 -- 0 --
CDW Computer Centers Inc. + 0 -- 0 -- 900 66,150 816 59,976 612 44,982
Charming Shoppes Inc. + 0 -- 2,800 15,225 0 -- 0 -- 0 --
Circuit City Stores Inc. 244 6,329 1,508 39,114 2,916 75,634 2,826 73,299 5,740 148,881
Consolidated Stores Corp. + 458 6,240 0 -- 0 -- 3,135 42,714 3,132 42,674
CVS Corp. 404 14,999 0 -- 6,573 244,023 5,108 189,635 10,960 406,890
Darden Restaurants Inc. 90 1,592 15,784 279,180 4,729 83,644 3,211 56,795 3,613 63,905
Deb Shops Inc. 0 -- 1,800 20,531 0 -- 0 -- 0 --
Dillards Inc. "A" 118 1,512 0 -- 0 -- 0 -- 2,925 37,477
Discount Auto Parts Inc. + 0 -- 2,000 17,750 0 -- 0 -- 0 --
Dollar General Corp. 363 7,464 2,582 53,092 5,631 115,787 5,051 103,861 9,293 191,087
Dollar Tree Stores Inc. + 0 -- 0 -- 1,530 62,061 1,405 56,990 2,764 112,115
eBay Inc. + 0 -- 0 -- 1,000 62,000 800 49,600 1,700 105,400
Family Dollar Stores Inc. 0 -- 0 -- 3,533 63,306 3,007 54,126 6,833 122,994
Federated Department Stores Inc. + 0 -- 1,953 53,952 4,336 119,782 2,842 78,510 5,861 161,910
Finlay Enterprises Inc. + 0 -- 1,200 15,150 0 -- 0 -- 0 --
Footstar Inc. + 0 -- 500 14,875 0 -- 0 -- 0 --
Fred's Inc. 0 -- 800 19,200 0 -- 0 -- 0 --
Gap Inc. 558 12,520 4,728 106,085 14,806 332,210 11,436 256,595 25,430 570,586
Golden State Bancorp Inc. + 200 263 500 656 800 1,050 900 1,181 1,900 2,494
Guitar Center Inc. + 0 -- 1,100 16,500 0 -- 0 -- 0 --
Home Depot Inc. 1,499 72,046 12,238 588,189 37,675 1,810,755 29,755 1,430,100 68,091 3,272,624
HomeBase Inc. + 0 -- 6,200 14,338 0 -- 0 -- 0 --
Intimate Brands Inc. 0 -- 0 -- 2,300 37,087 2,400 38,700 300 4,837
Kmart Corp. + 0 -- 3,732 26,124 11,082 77,574 8,337 58,359 13,711 95,977
Kohls Corp. + 214 11,984 1,910 106,960 6,266 350,896 4,212 235,872 9,862 552,272
Limited Inc. 197 3,940 0 -- 8,464 169,280 6,234 124,680 11,962 239,240
Longs Drug Stores Inc. 1,466 27,671 0 -- 0 -- 0 -- 0 --
Lowe's Companies Inc. 304 13,623 0 -- 6,403 286,934 5,039 225,810 10,733 480,973
May Department Stores Co. 0 -- 0 -- 6,677 153,154 4,541 104,159 9,335 214,122
</TABLE>
39
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
McDonald's Corp. 438 $ 13,085 0 -- 22,712 $ 678,521 17,334 $ 517,853 34,018 $1,016,288
Neiman-Marcus Group Inc. "A" + 600 20,138 700 $ 23,494 0 -- 0 -- 0 --
Nordstrom Inc. 214 3,692 1,590 27,428 4,951 85,405 3,431 59,185 3,812 65,757
Office Depot Inc. + 477 3,488 3,095 22,632 6,628 48,467 6,279 45,915 9,265 67,750
Outback Steakhouse Inc. + 0 -- 0 -- 1,615 37,044 1,439 33,007 2,982 68,400
Payless Shoesource Inc. + 0 -- 0 -- 1,302 69,494 796 42,487 0 --
PC Connection Inc. + 300 19,425 0 -- 0 -- 0 -- 0 --
Penney (J.C.) Company Inc. 0 -- 2,863 40,082 6,746 94,444 4,457 62,398 7,295 102,130
Pier 1 Imports Inc. 0 -- 0 -- 3,430 40,303 2,689 31,596 0 --
RadioShack Corp. 132 7,788 1,160 68,440 3,354 197,886 2,584 152,456 5,836 344,324
Rite Aid Corp. 838 3,352 0 -- 8,307 33,228 9,204 36,816 7,281 29,124
Ross Stores Inc. 0 -- 0 -- 2,730 41,291 2,400 36,300 0 --
Ruby Tuesday Inc. 5,468 68,350 0 -- 0 -- 0 -- 0 --
Saks Inc. + 0 -- 0 -- 6,932 69,320 4,777 47,770 5,277 52,770
Sears, Roebuck and Co. 0 -- 0 -- 6,312 196,856 4,946 154,253 9,205 287,081
7-Eleven Inc. + 560 7,490 0 -- 0 -- 0 -- 0 --
Staples Inc. + 511 7,857 3,497 53,766 7,996 122,939 6,950 106,856 13,187 202,750
Starbucks Corp. + 0 -- 1,836 67,244 3,256 119,251 2,936 107,531 6,708 245,681
Target Corporation 926 21,530 5,956 138,477 14,662 340,892 11,422 265,562 24,230 563,348
Tiffany & Co. 0 -- 1,560 64,935 2,984 124,209 3,172 132,035 5,860 243,923
TJX Companies Inc. 176 3,315 2,376 44,699 6,463 121,585 5,014 94,326 8,747 164,553
Toys R Us Inc. + 0 -- 1,861 33,847 4,670 84,936 4,057 73,787 6,783 123,366
Tricon Global Restaurants Inc. + 0 -- 1,550 45,144 3,375 98,297 2,542 74,036 4,572 133,160
Walgreen Co. 650 21,369 5,898 193,897 16,964 557,692 13,002 427,441 30,620 1,006,633
Wal-Mart Stores Inc. 2,906 137,853 23,326 1,106,527 73,470 3,485,233 56,890 2,698,719 129,118 6,125,035
Wendy's International Inc. 131 2,473 9,815 185,258 3,674 69,347 2,523 47,622 3,406 64,288
--------- --------- ---------- ---------- ----------
716,840 3,752,933 11,509,734 9,162,556 18,797,025
--------- --------- ---------- ---------- ----------
SEMICONDUCTORS
Percent of Net Assets 1.39% 1.97% 3.75% 4.72% 5.96%
Advanced Micro Devices Inc. + 460 17,308 1,752 65,919 4,984 187,523 3,734 140,492 8,218 309,202
Altera Corp. + 680 44,073 2,448 158,661 8,140 527,574 6,716 435,281 14,500 939,781
Analog Devices Inc. + 582 58,491 2,056 206,628 5,912 594,156 4,564 458,682 9,760 980,880
Applied Materials Inc. + 700 60,419 3,760 324,535 13,008 1,122,753 9,855 850,610 24,111 2,081,081
Applied Micro Circuits Corp. + 300 60,881 800 162,350 1,700 344,994 1,600 324,700 3,600 730,575
Atmel Corp. + 0 -- 0 -- 6,200 124,000 7,600 152,000 20,044 400,880
Broadcom Corp. + 300 75,000 1,200 300,000 3,300 825,000 2,600 650,000 4,600 1,150,000
C-Cube Microsystems Inc. + 0 -- 0 -- 0 -- 357 8,300 718 16,694
Cirrus Logic Inc. + 2,434 73,629 0 -- 0 -- 1,352 40,898 0 --
Conexant Systems Inc. + 0 -- 1,449 53,885 3,864 143,693 2,998 111,488 6,590 245,066
Cree Inc. + 0 -- 0 -- 800 110,200 500 68,875 1,300 179,075
Cypress Semiconductor Corp. + 0 -- 0 -- 1,296 64,071 1,371 67,779 3,300 163,144
Elantec Semiconductor Inc. + 500 44,250 0 -- 0 -- 0 -- 0 --
Emcore Corp. + 100 11,150 0 -- 0 -- 0 -- 0 --
Integrated Device Technology Inc. + 0 -- 0 -- 1,590 139,523 814 71,429 2,255 197,876
Integrated Silicon Solution Inc. + 700 20,563 0 -- 0 -- 0 -- 0 --
Intel Corp. 4,164 311,780 23,984 1,795,802 98,784 7,396,452 86,720 6,493,160 199,748 14,956,132
International Rectifier Corp. + 0 -- 0 -- 1,477 92,959 625 39,336 1,072 67,469
Intersil Holding Corp. + 0 -- 0 -- 0 -- 400 21,600 800 43,200
KLA-Tencor Corp. + 388 25,463 1,042 68,381 3,258 213,806 2,470 162,094 5,146 337,706
Lam Research Corp. + 0 -- 0 -- 2,114 63,684 1,338 40,307 3,780 113,873
Lattice Semiconductor Corp. + 0 -- 0 -- 1,328 103,418 1,250 97,344 2,674 208,238
Linear Technology Corp. 204 14,675 1,542 110,928 5,238 376,809 3,992 287,175 9,526 685,277
LSI Logic Corp. + 536 19,263 1,758 63,178 4,944 177,675 3,872 139,150 8,360 300,438
Maxim Integrated Products Inc. + 700 61,381 1,740 152,576 4,682 410,553 4,008 351,452 10,518 922,297
Micron Technology Inc. + 590 48,233 2,984 243,942 9,102 744,089 7,020 573,885 15,144 1,238,022
MIPS Technologies Inc. "B" + 0 -- 0 -- 0 -- 498 25,771 0 --
National Semiconductor Corp. + 586 26,077 1,022 45,479 2,834 126,113 2,179 96,966 4,786 212,977
Novellus Systems Inc. + 0 -- 720 44,325 2,331 143,502 1,812 111,551 5,034 309,906
Pericom Semiconductor Corp. + 400 29,600 0 -- 0 -- 0 -- 0 --
PMC - Sierra Inc. + 400 94,400 1,000 236,000 2,100 495,600 1,700 401,200 4,000 944,000
QLogic Corp. + 211 23,949 0 -- 3,773 428,236 1,200 136,200 3,549 402,812
Rambus Inc. + 200 16,338 300 24,506 1,452 118,610 1,116 91,163 2,168 177,099
Silicon Laboratories Inc. + 0 -- 0 -- 0 -- 200 12,075 500 30,188
Teradyne Inc. + 342 22,166 1,016 65,850 2,962 191,975 2,258 146,347 4,798 310,970
Texas Instruments Inc. 1,060 70,954 7,868 526,664 27,024 1,808,919 20,880 1,397,655 48,048 3,216,213
Transwitch Corp. + 0 -- 0 -- 2,200 132,413 0 -- 1,400 84,263
TriQuint Semiconductor Inc. + 0 -- 0 -- 2,000 110,625 0 -- 2,800 154,875
Varian Semiconductor Equipment
Associates Inc. + 300 17,138 0 -- 1,820 103,96 995 56,839 1,659 94,770
Vitesse Semiconductor Corp. + 500 44,406 1,384 122,917 2,556 227,005 2,336 207,466 5,260 467,154
Xilinx Inc. + 408 36,261 1,598 142,022 5,448 484,191 4,072 361,899 9,798 870,797
--------- --------- ---------- ---------- ----------
1,327,848 4,914,548 18,134,089 14,631,169 33,542,930
--------- --------- ---------- ---------- ----------
</TABLE>
40
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2010
------------------- ---------------- ---------------- ------------------ --------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMON STOCKS, Continued
SOFTWARE
Percent of Net Assets 1.36% 2.44% 4.23% 5.27% 6.69%
Adobe Systems Inc. 374 $ 48,620 586 $ 76,180 2,376 $ 308,880 1,804 $ 234,520 3,648 $ 474,240
Akamai Technologies Inc. + 0 -- 300 22,669 700 52,894 700 52,894 1,700 128,456
America Online Inc. + 1,890 110,801 12,930 758,021 37,246 2,183,547 29,616 1,736,238 68,074 3,990,838
Ariba Inc. + 300 47,213 900 141,638 1,900 299,013 1,600 251,800 4,000 629,500
At Home Corp. "A" + 0 -- 0 -- 3,252 47,357 3,172 46,192 7,496 109,161
Autodesk Inc. 0 -- 0 -- 3,521 99,028 1,149 32,316 1,737 48,853
Automatic Data Processing 408 24,327 3,726 222,163 10,398 619,981 8,073 481,353 19,126 1,140,388
BEA Systems Inc. + 400 27,225 0 -- 2,652 180,502 2,316 157,633 4,812 327,517
BMC Software Inc. + 469 12,663 1,515 40,905 4,959 133,893 3,629 97,983 7,360 198,720
BroadVision Inc. + 600 20,700 1,600 55,200 3,200 110,400 2,900 100,050 6,800 234,600
Cadence Design Systems Inc. + 0 -- 0 -- 4,825 102,531 3,452 73,355 10,984 233,410
CheckFree Corp. + 0 -- 0 -- 0 -- 0 -- 1,700 88,081
ChoicePoint Inc. + 1,282 60,094 0 -- 2,138 100,219 876 41,063 854 40,031
Citrix Systems Inc. + 0 -- 1,084 23,848 3,800 83,600 2,868 63,096 5,714 125,708
CMGI Inc. + 0 -- 0 -- 2,400 107,400 2,600 116,350 7,700 344,575
Computer Associates International Inc. 566 17,971 3,122 99,124 10,846 344,361 7,989 253,651 18,437 585,375
Compuware Corp. + 750 7,922 3,320 35,068 7,390 78,057 6,166 65,128 10,822 114,307
Cyber-Care Inc. + 0 -- 0 -- 2,200 13,063 0 -- 0 --
DoubleClick Inc. + 0 -- 0 -- 1,100 44,756 1,200 48,825 3,000 122,033
EarthLink Inc. + 0 -- 0 -- 0 -- 0 -- 1 6
Edwards (J.D.) & Co. + 0 -- 0 -- 0 -- 0 -- 1,513 37,541
Electronic Arts Inc. + 0 -- 0 -- 1,302 140,535 1,329 143,449 3,015 325,432
Exodus Communications Inc. + 700 47,906 2,100 143,719 4,100 280,594 3,400 232,688 8,500 581,719
First Data Corp. 443 21,126 2,775 132,333 7,073 337,294 5,479 261,280 11,714 558,611
Fiserv Inc. + 0 -- 0 -- 2,183 118,278 1,983 107,454 6,284 340,514
Geoworks Corp. + 0 -- 0 -- 0 -- 0 -- 3,900 44,606
Globix Corp. + 500 13,406 2,000 53,625 1,500 40,219 0 -- 2,600 69,713
i2 Technologies Inc. + 300 50,756 652 110,310 1,516 256,488 1,396 236,186 3,211 543,261
IMS Health Inc. 190 3,586 2,124 40,091 5,945 112,212 3,930 74,179 9,265 174,877
Informix Corp. + 0 -- 0 -- 0 -- 4,709 28,843 4,775 29,247
Infospace.com Inc. + 500 19,500 1,700 66,300 2,900 113,100 2,700 105,300 6,400 249,600
Inktomi Corp. + 200 26,075 300 39,113 1,300 169,488 1,100 143,413 2,600 338,975
Internet Capital Group LLC + 0 -- 900 31,388 2,000 69,750 1,900 66,263 4,600 160,425
Internet Pictures Corp. + 0 -- 0 -- 2,000 15,625 0 -- 0 --
Intuit Inc. + 0 -- 0 -- 2,467 147,712 2,012 120,469 7,583 454,032
Keane Inc. + 0 -- 0 -- 2,327 40,286 1,696 29,362 3,733 64,628
Legato Systems Inc. + 0 -- 0 -- 0 -- 2,008 24,347 0 --
Lycos Inc. + 0 -- 0 -- 1,100 78,100 1,200 85,200 3,200 227,200
Macromedia Inc. + 400 27,644 0 -- 914 63,166 846 58,467 1,995 137,873
Manugistics Group Inc. + 400 35,100 0 -- 0 -- 0 -- 1,200 105,300
Mercury Interactive Corp. + 0 -- 0 -- 2,100 256,594 1,500 183,281 3,000 366,563
Microsoft Corp. + 3,606 251,744 26,754 1,867,764 86,310 6,025,517 67,486 4,711,366 153,722 10,731,717
National Data Corp. 0 -- 0 -- 0 -- 893 26,232 0 --
NetSol International Inc. + 400 10,400 0 -- 0 -- 0 -- 0 --
Network Associates Inc. + 0 -- 0 -- 4,167 107,821 2,432 62,928 7,079 183,169
Niku Corp. + 0 -- 0 -- 800 21,650 1,100 29,769 2,200 59,538
Novell Inc. + 1,025 12,556 2,246 27,514 7,070 86,608 5,142 62,990 9,108 111,573
Oracle Corp. + 2,342 212,976 14,414 1,310,773 46,026 4,185,489 36,998 3,364,506 83,930 7,632,384
Parametric Technology Corp. + 0 -- 0 -- 6,033 80,691 5,139 68,734 8,173 109,314
PeopleSoft Inc. + 0 -- 0 -- 6,620 213,495 4,845 156,251 8,030 258,968
Peregrine Systems Inc. + 0 -- 0 -- 0 -- 0 -- 3,100 99,006
Phone.com Inc. + 0 -- 0 -- 0 -- 800 73,950 1,800 166,388
Prime Response Inc. + 0 -- 0 -- 0 -- 1,100 6,600 100 600
PSINET Inc. + 0 -- 0 -- 3,500 61,469 2,300 40,394 5,200 91,325
Rational Software Corp. + 300 38,606 792 101,921 1,778 228,806 1,529 196,763 3,226 415,146
RealNetworks Inc. + 0 -- 800 38,950 1,400 68,163 1,400 68,163 3,300 160,669
Reynolds & Reynolds Co. "A" 0 -- 0 -- 3,488 63,220 1,875 33,984 3,468 62,858
Siebel Systems Inc. + 400 78,800 1,112 219,064 3,768 742,296 2,832 557,904 6,352 1,251,344
SourcingLink.net Inc. + 0 -- 0 -- 5,000 27,813 0 -- 0 --
Sybase Inc. + 0 -- 0 -- 3,227 88,541 1,871 51,336 2,408 66,070
Symantec Corp. + 0 -- 0 -- 1,522 74,293 1,594 77,807 3,603 175,871
TIBCO Software Inc. + 0 -- 0 -- 0 -- 0 -- 1,400 142,713
Total System Services Inc. 0 -- 0 -- 0 -- 993 16,385 2,243 37,010
USinternetworking Inc. + 0 -- 0 -- 1,100 11,344 0 -- 2,625 27,070
Usurf America Inc. + 0 -- 0 -- 200 263 0 -- 0 --
Vicinity Corp. + 0 -- 0 -- 0 -- 1,100 12,238 0 --
Vignette Corp. + 300 11,438 500 19,063 2,400 91,500 2,300 87,688 5,000 190,625
Yahoo! Inc. + 540 65,610 3,318 403,137 8,958 1,088,397 7,144 867,996 16,332 1,984,338
--------- --------- ---------- ---------- ----------
1,304,765 6,079,881 20,416,299 16,326,612 37,703,642
--------- --------- ---------- ---------- ----------
TELECOMMUNICATION EQUIPMENT
Percent of Net Assets 0.60% 1.05% 1.78 2.13% 2.71%
ADC Telecommunications Inc. + 808 33,078 3,344 136,891 12,148 497,309 9,170 375,397 18,460 755,706
</TABLE>
41
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
ADTRAN Inc. + 0 -- 0 -- 0 -- 368 $ 19,711 718 $ 38,458
Advanced Fibre 1,261 66,656 2,673 141,293
Communications Inc. + 0 -- 0 -- 1,227 $ 64,858
American Tower Corp. + 0 -- 0 -- 2,028 73,642 1,775 64,455 900 32,681
Andrew Corp. + 690 $ 20,441 0 -- 2,294 67,960 1,090 32,291 2,313 68,523
Ciena Corp. + 300 66,506 628 $ 139,220 1,940 430,074 1,671 370,440 3,861 855,935
Commscope Inc. + 0 -- 0 -- 794 19,800 646 16,110 1,671 41,671
Comverse Technology Inc. + 200 18,388 760 69,873 2,926 269,009 2,132 196,011 4,708 432,842
Harmonic Inc. + 0 -- 0 -- 0 -- 0 -- 989 33,132
Harris Corp. 0 -- 0 -- 1,720 51,708 1,063 31,956 2,112 63,492
JDS Uniphase Corp. + 1,200 149,550 4,420 550,843 13,520 1,684,930 9,900 1,233,788 25,824 3,218,316
Lucent Technologies Inc. 2,083 87,095 16,430 686,979 50,046 2,092,548 41,727 1,744,710 96,907 4,051,924
Motorola Inc. 1,828 65,922 11,801 425,574 35,497 1,280,111 27,570 994,243 56,578 2,040,344
Palm Inc. + 1,008 44,352 3,596 158,224 9,146 402,424 7,086 311,784 14,166 623,304
QUALCOMM Inc. + 780 46,703 3,866 231,477 12,426 744,007 9,944 595,397 22,520 1,348,385
RF Micro Devices Inc. + 0 -- 0 -- 2,400 107,100 1,800 80,325 4,800 214,200
Scientific-Atlanta Inc. 350 27,278 938 73,105 2,888 225,084 2,100 163,669 4,388 341,990
Sycamore Networks Inc. + 0 -- 300 41,100 1,500 205,500 0 -- 2,100 287,700
Tellabs Inc. + 264 14,834 2,102 118,106 6,884 386,795 5,252 295,097 12,216 686,387
-------- ---------- ---------- --------- ----------
574,147 2,631,392 8,602,859 6,592,040 15,276,283
-------- ---------- ---------- --------- ----------
TELECOMMUNICATIONS
Percent of Net Assets 0.67% 1.08% 1.99% 2.29% 2.91%
Adaptec Inc. + 0 -- 0 -- 2,450 60,025 1,556 38,122 2,974 72,863
Allegiance Telecom Inc. + 0 -- 0 -- 1,850 92,153 0 -- 2,300 114,569
Anixter International Inc. + 0 -- 0 -- 0 -- 625 21,875 0 --
Arch Communications Group Inc. + 0 -- 0 -- 7,000 36,313 0 -- 0 --
Aspect Communications Corp. + 0 -- 0 -- 0 -- 0 -- 1,260 28,429
Broadwing Inc. + 0 -- 0 -- 2,941 82,164 0 -- 4,192 117,114
Cabletron Systems + 777 29,089 0 -- 4,029 150,836 2,942 110,141 5,071 189,846
Choice One Communications Inc. + 0 -- 0 -- 0 -- 800 12,800 0 --
Copper Mountain Networks Inc. + 0 -- 0 -- 800 47,950 600 35,963 1,500 89,906
Corning Inc. 275 90,183 1,368 448,619 4,668 1,530,812 3,593 1,178,279 8,366 2,743,525
Cox Communications Inc. "A" + 0 -- 0 -- 2,375 84,461 2,405 85,528 7,308 259,891
Digital Lightware Inc. + 0 -- 0 -- 500 43,875 0 -- 1,000 87,750
Echostar Communications Corp. + 0 -- 0 -- 2,800 136,500 0 -- 4,300 209,625
Emulex Corp. + 0 -- 0 -- 1,200 125,625 0 -- 1,400 146,563
Global Crossing Ltd. + 1,102 33,129 5,386 161,917 14,586 438,492 13,123 394,510 22,854 687,042
Global Telesystems Group Inc. 1,900 16,388 0 -- 0 -- 4,586 39,554 4,532 39,089
Hughes Electronics Corp. + 0 -- 0 -- 6,084 201,533 5,625 186,328 17,328 573,990
ICG Communications Inc. + 0 -- 0 -- 0 -- 1,882 11,233 2,231 13,316
InterDigital Communications Corp. + 600 10,725 0 -- 1,400 25,025 0 -- 1,700 30,388
Leap Wireless International Inc. + 0 -- 0 -- 1,094 86,836 879 69,771 2,473 196,294
Level 3 Communications Inc. + 0 -- 0 -- 3,400 296,597 2,600 226,809 7,700 671,705
Lightpath Technologies Inc. "B" + 0 -- 1,700 89,675 0 -- 0 -- 0 --
McLeodUSA Inc. "A" + 0 -- 0 -- 5,562 87,949 5,424 85,767 12,096 191,268
Metromedia Fiber Network Inc. + 0 -- 0 -- 3,000 119,813 3,100 123,806 6,800 271,575
Mpower Communications Corp. + 0 -- 0 -- 0 -- 0 -- 600 11,063
MRV Communications Inc. + 0 -- 1,000 77,063 1,100 84,769 0 -- 2,400 184,950
Natural Microsystems Corp. + 400 29,825 0 -- 0 -- 0 -- 0 --
Newport Corp. 200 31,800 0 -- 0 -- 0 -- 0 --
Nextel Communications Inc. "A" + 1,076 59,651 3,910 216,761 13,366 740,978 10,302 571,117 22,100 1,225,169
NTL Inc. + 0 -- 0 -- 2,005 87,855 1,920 84,120 2,888 126,509
Osicom Technologies Inc. + 100 5,900 600 35,400 400 23,600 0 -- 1,200 70,800
Powerwave Technologies Inc. + 0 -- 0 -- 1,300 62,563 0 -- 1,600 77,000
Qwest Communications 21,483 1,109,060 41,734 2,154,518
International Inc. + 568 29,323 8,537 440,723 27,073 1,397,644
SDL Inc. + 100 39,731 500 198,656 1,100 437,044 900 357,581 2,100 834,356
Sprint Corp. (PCS Group) + 1,464 73,475 5,282 265,090 15,980 801,996 12,098 607,168 26,130 1,311,399
Terayon Communications 0 -- 1,700 94,350
Systems Inc. + 0 -- 0 -- 800 44,400
Tollgrade Communications Inc. + 200 22,238 0 -- 0 -- 0 -- 0 --
Verizon Communications 2,665 116,261 16,072 701,141 45,956 2,004,831 34,792 1,517,801 71,016 3,098,073
VerticalNet Inc. + 0 -- 0 -- 600 31,950 800 42,600 1,800 95,850
Voicestream Wireless Corp. + 452 50,878 489 55,043 2,167 243,923 1,672 188,205 3,245 365,265
Western Wireless Corp. "A" + 0 -- 0 -- 0 -- 0 -- 365 18,661
-------- ---------- ---------- --------- ----------
638,596 2,690,088 9,608,512 7,098,138 16,402,711
-------- ---------- ---------- --------- ----------
TELEPHONE
Percent of Net Assets 0.41% 1.16% 1.69% 2.03% 2.33%
Alltel Corp. 349 17,646 1,832 92,631 5,349 270,459 4,135 209,076 8,824 446,164
AT&T Corp. 2,629 82,813 21,876 689,094 59,019 1,859,098 47,299 1,489,918 97,903 3,083,944
BellSouth Corp. 1,860 69,401 11,159 416,370 31,601 1,179,112 24,435 911,731 52,628 1,963,682
CenturyTel Inc. 100 2,881 2,230 64,252 3,153 90,846 2,700 77,794 3,890 112,081
Intermedia Communications Inc. + 0 -- 0 -- 0 -- 3,500 72,625 0 --
NEXTLINK Communications Inc. + 0 -- 0 -- 4,000 140,250 0 -- 3,400 119,213
SBC Communications Inc. 2,229 93,061 19,841 828,362 53,793 2,245,858 43,394 1,811,700 89,620 3,741,635
Sprint Corp. (FON Group) 860 28,810 5,426 181,771 14,570 488,095 11,418 382,503 24,372 816,462
Telephone & Data Systems Inc. 0 -- 0 -- 1,325 153,700 0 -- 800 92,800
</TABLE>
42
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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> <C>
COMMON STOCKS, Continued
WorldCom Inc. + 2,771 $ 101,142 16,770 $ 612,105 47,632 $ 1,738,568 36,981 $1,349,807 76,044 $ 2,775,606
--------- --------- ----------- ---------- -----------
395,754 2,884,585 8,165,986 6,305,154 13,151,587
--------- --------- ----------- ---------- -----------
TEXTILES
Percent of Net Assets 0.02% 0.02% 0.02% 0.04% 0.05%
Cintas Corp. 0 -- 0 -- 1,875 77,930 2,451 101,870 5,458 226,848
G & K Services Inc. "A" 0 -- 800 23,200 0 -- 0 -- 0 --
Shaw Industries Inc. 0 -- 0 -- 3,118 38,780 2,572 31,989 6,329 78,717
UniFirst Corp. 0 -- 2,000 20,250 0 -- 0 -- 0 --
Westpoint Stevens Inc. 1,500 21,094 0 -- 0 -- 0 -- 0 --
--------- --------- ----------- ---------- -----------
21,094 43,450 116,710 133,859 305,565
--------- --------- ----------- ---------- -----------
TOBACCO
Percent of Net Assets 0.01% 0.12% 0.25% 0.35% 0.35%
Philip Morris Companies Inc. 231 6,843 0 -- 36,064 1,068,396 29,038 860,251 55,337 1,639,359
R.J. Reynolds Tobacco
Holdings Inc. 0 -- 0 -- 3,848 138,047 3,422 122,764 5,537 198,640
UST Inc. 72 1,557 13,348 288,651 913 19,744 5,065 109,531 5,181 112,039
--------- --------- ----------- ---------- -----------
8,400 288,651 1,226,187 1,092,546 1,950,038
--------- --------- ----------- ---------- -----------
TOYS / GAMES / HOBBIES
Percent of Net Assets 0.01% 0.05% 0.03% 0.03% 0.03%
Hasbro Inc. 167 2,056 7,275 89,573 5,332 65,650 3,513 43,254 4,991 61,452
Marvel Enterprises Inc.
"A" Warrants (Expires 10/02/01) 0 -- 5 2 39 17 5 2 16 7
Marvel Enterprises Inc.
"C" Warrants (Expires 10/02/01) 0 -- 9 3 66 21 9 3 28 9
Mattel Inc. 403 3,980 4,111 40,596 7,476 73,826 5,386 53,187 11,803 116,555
--------- ---------- ----------- ----------- -----------
6,036 130,174 139,514 96,446 178,023
--------- ---------- ----------- ----------- -----------
TRANSPORTATION
Percent of Net Assets 0.04% 0.04% 0.17% 0.21% 0.24%
Airborne Freight Corp. 0 -- 0 -- 0 -- 1,150 17,178 0 --
Alexander & Baldwin Inc. 0 -- 0 -- 0 -- 990 26,049 0 --
Burlington Northern
Santa Fe Corp. 0 -- 0 -- 6,757 151,188 6,015 134,586 10,972 245,499
CNF Transportation Inc. 0 -- 0 -- 2,436 59,682 1,126 27,587 2,518 61,691
CSX Corp. 0 -- 1,713 40,898 3,683 87,932 2,898 69,190 6,132 146,402
FedEx Corp. + 0 -- 0 -- 4,906 197,957 3,818 154,056 8,156 329,095
Kansas City Southern
Industries Inc. 66 611 2,230 20,628 911 8,427 702 6,494 0 --
Norfolk Southern Corp. 0 -- 2,895 46,501 6,371 102,334 5,058 81,244 10,672 171,419
Union Pacific Corp. 0 -- 0 -- 4,145 164,764 3,263 129,704 6,510 258,773
United Parcel Service Inc. 0 -- 0 -- 1,100 60,981 0 -- 2,500 138,594
Wisconsin Central
Transportation Corp. + 2,800 37,450 0 -- 0 -- 0 -- 0 --
--------- ---------- ----------- ----------- -----------
38,061 108,027 833,265 646,088 1,351,473
--------- ---------- ----------- ----------- -----------
TRUCKING & LEASING
Percent of Net Assets 0.13% 0.01% 0.02% 0.01% 0.02%
GATX Corporation 0 -- 0 -- 2,431 98,911 1,091 44,390 2,679 109,002
Interpool Inc. 0 -- 1,600 19,300 0 -- 0 -- 0 --
Ryder System Inc. 1,529 29,338 0 -- 0 -- 0 -- 0 --
Xtra Corp. + 2,200 97,625 0 -- 0 -- 0 -- 0 --
---------- ---------- ----------- ----------- -----------
126,963 19,300 98,911 44,390 109,002
---------- ---------- ----------- ----------- -----------
WATER
Percent of Net Assets 0.00% 0.02% 0.01% 0.01% 0.02%
American Water Works Inc. 0 -- 0 -- 1,765 43,243 1,707 41,822 3,656 89,572
Middlesex Water Co. 0 -- 1,100 32,038 0 -- 0 -- 0 --
Southwest Water Co. 0 -- 1,700 23,481 0 -- 0 -- 0 --
---------- ---------- ----------- ----------- -----------
-- 55,519 43,243 41,822 89,572
---------- ---------- ----------- ----------- -----------
TOTAL U.S. COMMON STOCKS
(Cost $10,643,593, $56,919,625,
$172,289,611, $121,412,612 and
$275,04414,121,686 respectively) 14,121,686 78,591,402 242,160,351 188,382,530 408,683,312
---------- ---------- ----------- ----------- -----------
</TABLE>
43
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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
INTERNATIONAL COMMON STOCKS
Percentage of Net Assets 5.22% 9.31% 14.33% 17.81% 20.84%
AUSTRALIA
Percent of Net Assets 0.17% 0.31% 0.45% 0.57% 0.67%
Coles Myer Ltd. ADR 574 $ 19,014 2,682 $ 88,841 7,845 $ 259,866 6,259 $ 207,329 13,149 $ 435,561
National Australia Bank 633 47,159 3,001 223,575 8,732 650,534 6,957 518,297 14,625 1,089,563
News Corporation Ltd. 494 25,997 2,310 121,564 6,734 354,377 5,365 282,333 11,275 593,347
Rio Tinto PLC ADR 540 35,910 2,530 168,245 7,380 490,770 5,890 391,685 12,370 822,605
Westpac Banking Corp. ADR 916 33,377 4,268 155,515 12,439 453,246 9,923 361,569 20,842 759,430
---------- ---------- --------- --------- ---------
161,457 757,740 2,208,793 1,761,213 3,700,506
---------- ---------- --------- --------- ---------
CANADA
Percent of Net Assets 0.25% 0.63% 1.00% 1.25% 1.49%
Alcan Aluminium Ltd. 1 16 1,310 42,984 3,700 121,406 2,894 94,959 6,172 202,519
Barrick Gold Corp. 323 5,148 4,188 66,746 10,497 167,296 8,137 129,683 11,004 175,376
Inco Ltd. + 166 2,967 5,549 99,188 6,195 110,736 3,485 62,294 5,373 96,042
Nortel Networks Corp. 2,392 195,098 14,748 1,202,884 47,868 3,904,234 38,324 3,125,801 87,792 7,160,535
Placer Dome Inc. 1,021 9,061 0 -- 15,616 138,592 11,595 102,906 8,811 78,198
Seagram Co. Ltd. 444 26,723 2,650 159,497 7,241 435,818 5,630 338,856 12,099 728,209
---------- ---------- --------- --------- ---------
239,013 1,571,299 4,878,082 3,854,499 8,440,879
---------- ---------- --------- --------- ---------
DENMARK
Percent of Net Assets 0.22% 0.39% 0.57% 0.72% 0.82%
Novo-Nordisk A/S ADR 1,482 150,423 6,951 705,527 20,206 2,050,909 16,114 1,635,571 33,857 3,436,486
Tele Denmark A/S ADR 1,858 55,159 8,786 260,834 25,372 753,231 20,234 600,697 42,512 1,262,075
---------- ---------- --------- --------- ---------
205,582 966,361 2,804,140 2,236,268 4,698,561
---------- ---------- --------- --------- ---------
FINLAND
Percent of Net Assets 0.12% 0.22% 0.32% 0.40% 0.45%
Nokia OYJ 2,508 112,703 11,844 532,240 34,298 1,541,266 27,358 1,229,400 57,468 2,582,468
---------- ---------- --------- --------- ---------
FRANCE
Percent of Net Assets 0.70% 1.26% 1.94% 2.40% 2.79%
Alcatel SA ADR 2,239 185,557 10,552 874,497 30,674 2,542,108 24,460 2,027,122 51,393 4,259,195
Aventis SA 1,344 100,464 6,305 471,299 18,346 1,371,364 14,632 1,093,742 30,735 2,297,441
AXA Financial Inc. ADR 0 -- 0 -- 3,830 198,203 3,328 172,224 8,426 436,046
AXA-UAP ADR 1,255 88,242 5,918 416,109 17,187 1,208,461 13,708 963,844 28,790 2,024,297
ELF Aquitaine ADR 460 45,856 2,170 216,322 6,300 628,031 5,030 501,428 10,560 1,052,700
France Telecom SA ADR 350 40,359 1,670 192,572 4,850 559,266 3,870 446,259 8,120 936,338
LVMH Moet-Hennessy Louis
Vuitton ADR 2,805 43,828 13,415 209,609 38,765 605,703 30,920 483,125 64,945 1,014,766
Total Fina SA 2,162 161,069 10,226 761,837 29,620 2,206,690 23,618 1,759,541 49,626 3,697,137
Total Fina SA Warrants
(Expires 08/08/03) + 0 -- 81 2,724 81 2,724 81 2,724 162 5,447
---------- ---------- --------- --------- ----------
665,375 3,144,969 9,322,550 7,450,009 15,723,367
---------- ---------- --------- --------- ----------
GERMANY
Percent of Net Assets 0.25% 0.46% 0.68% 0.84% 0.99%
DaimlerChrysler AG 2,259 117,609 10,648 554,362 30,819 1,604,514 24,585 1,279,957 51,639 2,688,455
Deutsche Telekom AG ADR 2,116 82,392 10,008 389,687 28,975 1,128,214 23,110 899,846 48,540 1,890,026
SAP AG ADR 640 41,080 3,020 193,846 8,790 564,208 7,010 449,954 14,720 944,840
---------- ---------- --------- --------- ---------
241,081 1,137,895 3,296,936 2,629,757 5,523,321
---------- ---------- --------- --------- ---------
HONG KONG
Percent of Net Assets 0.07% 0.13% 0.19% 0.25% 0.29%
Pacific Century CyberWorks
Ltd. ADR +3,731 70,193 17,646 331,969 49,171 925,031 40,497 761,840 85,456 1,607,635
---------- ---------- --------- --------- ---------
IRELAND
Percent of Net Assets 0.05% 0.10% 0.14% 0.18% 0.21%
Allied Irish Banks PLC ADR 3,018 50,552 14,276 239,123 41,219 690,418 32,875 550,656 69,063 1,156,805
---------- ---------- --------- --------- ---------
ITALY
Percent of Net Assets 0.20% 0.35% 0.52% 0.64% 0.75%
Benetton Group SpA ADR 1,297 48,232 6,072 225,803 17,672 657,178 14,096 524,195 29,606 1,100,973
ENI-Ente Nazionale
Idrocarburi SpA ADR 410 23,959 1,900 111,031 5,550 324,328 4,420 258,294 9,290 542,884
Fiat SpA ADR 1,189 29,353 5,635 139,114 16,190 399,691 12,909 318,679 27,116 669,414
Montedison SpA ADR 1,199 24,879 5,581 115,806 16,317 338,578 13,007 269,895 27,337 567,243
San Paolo-Imi SpA ADR 1,580 56,485 7,480 267,410 21,760 777,920 17,350 620,263 36,450 1,303,088
---------- ---------- --------- --------- ---------
182,908 859,164 2,497,695 1,991,326 4,183,602
---------- ---------- --------- --------- ---------
JAPAN
Percent of Net Assets 1.34% 1.98% 3.22% 4.04% 4.87%
Canon Inc. ADR 1,040 47,060 4,030 182,358 12,625 571,281 10,145 459,061 22,220 1,005,455
Fuji Photo Film ADR 785 28,064 3,040 108,680 9,514 340,126 7,646 273,345 16,740 598,455
Hitachi Ltd. ADR 472 56,847 1,834 220,882 5,748 692,275 4,614 555,699 10,116 1,218,346
Honda Motor Company Ltd. ADR 533 38,643 2,055 148,988 6,417 465,233 5,162 374,245 11,304 819,540
Ito-Yokado Co. Ltd. ADR 960 48,000 3,750 187,500 11,730 586,500 9,432 471,600 20,644 1,032,200
Japan Air Lines ADR 6,068 42,855 23,640 166,958 74,125 523,508 59,554 420,600 130,467 921,423
Kirin Brewery Co. Ltd. ADR 767 83,267 2,992 324,819 9,346 1,014,625 7,510 815,304 16,462 1,787,156
Kubota Corp. ADR 884 58,786 3,463 230,290 10,826 719,929 8,695 578,218 19,050 1,266,825
Kyocera Corp. ADR 330 60,019 1,288 234,255 4,022 731,501 3,230 587,456 7,084 1,288,403
</TABLE>
44
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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
Makita Corp. ADR 970 $ 7,518 3,803 $ 29,473 11,989 $ 92,915 9,637 $ 74,687 21,103 $ 163,548
Matsushita Electric Industrial
Co. 237 65,086 943 258,971 2,951 810,418 2,371 651,136 5,196 1,426,952
Mitsubishi Corp. ADR 2,774 41,249 10,825 161,022 33,918 504,530 27,250 405,344 59,700 888,038
Mitsui & Co. ADR 380 50,920 1,465 196,310 4,592 615,328 3,694 494,996 8,085 1,083,390
NEC Corp. ADR 713 103,296 2,783 403,187 8,700 1,260,413 6,984 1,011,807 15,309 2,217,891
Nippon Telegraph & Telephone
Corp. ADR 1,914 115,199 7,459 448,939 23,350 1,405,378 18,758 1,128,997 41,094 2,473,345
Nissan Motor Co. Ltd. ADR 3,305 32,637 12,916 127,546 40,514 400,076 32,559 321,520 71,317 704,255
Pioneer Corp. ADR 1,342 57,622 5,217 224,005 16,394 703,917 13,177 565,787 28,856 1,239,005
Ricoh Corp. Ltd. ADR 407 37,037 1,599 145,509 4,989 453,999 4,015 365,365 8,783 799,253
Sony Corp. ADR 636 72,663 2,484 283,797 7,740 884,295 6,216 710,178 13,622 1,556,314
Tokio Marine and Fire Insurance
Co. Ltd. ADR 2,108 108,826 8,260 426,423 25,806 1,332,235 20,739 1,070,651 45,428 2,345,221
Toyota Motor Corp. ADR 1,378 120,231 5,361 467,747 16,791 1,465,015 13,489 1,176,915 29,554 2,578,587
---------- ---------- ----------- ----------- -----------
1,275,825 4,977,659 15,573,497 12,512,911 27,413,602
---------- ---------- ----------- ----------- -----------
NETHERLANDS
Percent of Net Assets 0.45% 0.94% 1.44% 1.78% 2.01%
Abn Amro Holding NV 2,462 61,550 11,535 288,375 33,545 838,625 26,774 669,350 56,247 1,406,175
Aegon NV ADR 1,184 46,472 5,573 218,740 16,174 634,829 12,894 506,089 27,318 1,072,251
Akzo Nobel NV ADR 700 31,325 3,250 145,438 9,490 424,678 7,570 338,758 15,900 711,525
Elsevier NV ADR 2,187 53,855 10,271 252,923 29,886 735,943 23,831 586,838 50,076 1,233,122
ING Groep NV ADR 487 32,842 2,274 153,353 6,526 440,097 5,209 351,282 11,108 749,096
Koninklijke (Royal) Philips
Electonics NV 1,216 59,964 5,728 282,462 16,697 823,371 13,309 656,300 27,926 1,377,101
Koninklijke Ahold NV ADR 1,666 47,481 7,810 222,589 22,729 647,765 18,138 516,931 38,106 1,086,026
Royal Dutch Petroleum Co. 1,676 102,550 12,788 782,466 32,302 1,976,479 24,600 1,505,213 49,772 3,045,424
Unilever NV 0 -- 0 -- 9,607 453,931 7,253 342,704 13,714 647,986
---------- ---------- ----------- ----------- -----------
436,039 2,346,346 6,975,718 5,473,465 11,328,706
---------- ---------- ----------- ----------- -----------
NEW ZEALAND
Percent of Net Assets 0.01% 0.02% 0.04% 0.05% 0.05%
Telecom Corp. of New Zealand
Ltd. 589 13,105 2,728 60,698 7,963 177,177 6,361 141,532 13,350 297,038
---------- ---------- ----------- ----------- -----------
PORTUGAL
Percent of Net Assets 0.02% 0.03% 0.05% 0.06% 0.07%
Banco Comercial Portugues ADR 690 17,854 3,280 84,870 9,580 247,883 7,640 197,685 16,060 415,553
---------- ---------- ----------- ----------- -----------
SINGAPORE
Percent of Net Assets 0.03% 0.05% 0.07% 0.09% 0.10%
Chartered Semiconductor
Manufacturing Ltd. ADR + 290 24,614 1,370 116,279 4,000 339,500 3,190 270,751 6,700 568,663
---------- ---------- ----------- ----------- -----------
SPAIN
Percent of Net Assets 0.20% 0.35% 0.54% 0.67% 0.77%
Banco Bilbao Vizcaya
Argentaria SA ADR 2,320 34,655 10,818 161,594 31,515 470,755 25,133 375,424 52,791 788,566
Banco Santander Central
Hispano SA ADR 6,694 73,216 31,618 345,822 91,318 998,791 72,828 796,556 152,976 1,673,175
Repsol SA 1,401 27,757 6,650 131,753 19,095 378,320 15,230 301,744 31,989 633,782
Telefonica SA ADR + 965 55,307 4,563 261,517 13,186 755,723 10,513 602,526 22,092 1,266,148
---------- ---------- ----------- ----------- -----------
190,935 900,686 2,603,589 2,076,250 4,361,671
---------- ---------- ----------- ----------- -----------
SWEDEN
Percent of Net Assets 0.13% 0.24% 0.36% 0.44% 0.51%
Telefonaktiebolaget LM
Ericsson 6,128 125,624 28,904 592,532 83,906 1,720,073 66,912 1,371,696 140,564 2,881,562
---------- ---------- ----------- ----------- -----------
SWITZERLAND
Percent of Net Assets 0.05% 0.10% 0.16% 0.19% 0.23%
Adecco SA ADR 320 30,840 1,562 150,538 4,456 429,447 3,549 342,035 7,470 719,921
Sulzer Medica ADR 830 23,240 3,930 110,040 11,500 322,000 9,170 256,760 19,260 539,280
---------- ---------- ----------- ----------- -----------
54,080 260,578 751,447 598,795 1,259,201
---------- ---------- ----------- ----------- -----------
UNITED KINGDOM
Percent of Net Assets 0.96% 1.75% 2.64% 3.24% 3.77%
AstraZeneca PLC ADR 1,403 63,924 6,615 301,396 19,116 870,973 15,246 694,646 32,019 1,458,866
Barclays PLC ADR 480 49,440 2,250 231,750 6,560 675,680 5,230 538,690 10,990 1,131,970
BP Amoco PLC ADR 1,288 71,162 6,090 336,473 17,598 972,290 14,038 775,600 29,482 1,628,881
British Sky Broadcasting PLC
ADR + 377 36,004 1,785 170,468 5,177 494,404 4,128 394,224 8,663 827,317
British Telecom PLC ADR 804 102,711 3,803 485,833 11,033 1,409,466 8,795 1,123,561 18,477 2,360,437
Cadbury Schweppes PLC ADR 1,614 37,929 7,634 179,399 21,982 516,577 17,536 412,096 36,828 865,458
Diageo PLC ADR 2,257 77,725 10,615 365,554 30,842 1,062,121 24,596 847,025 51,678 1,779,661
Glaxo Wellcome PLC ADR 2,120 122,033 9,992 575,165 29,031 1,671,097 23,146 1,332,342 48,632 2,799,380
Hanson PLC ADR 1,379 40,767 6,456 190,856 18,797 555,686 14,991 443,171 31,496 931,101
Hong Kong & Shanghai Banking
ADR 420 30,424 1,960 141,978 5,710 413,618 4,550 329,591 9,560 692,503
Reuters Group PLC ADR 394 47,305 1,873 224,877 5,444 653,620 4,336 520,591 9,121 1,095,090
Smithkline Beecham PLC ADR 1,305 85,233 6,125 400,039 17,791 1,161,975 14,188 926,654 29,807 1,946,770
Vodafone Group PLC ADR 3,950 161,703 18,640 763,075 54,010 2,211,034 43,073 1,763,301 90,480 3,704,025
---------- ---------- ----------- ----------- -----------
926,360 4,366,863 12,668,541 10,101,492 21,221,459
---------- ---------- ----------- ----------- -----------
</TABLE>
45
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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
TOTAL INTERNATIONAL COMMON STOCKS
(Cost $3,836,730, $15,599,815,
$51,039,324, $38,400,533 and
$87,428,20 respectively) $ 4,993,300 $ 23,247,271 $ 69,222,336 $ 55,209,545 $ 117,364,599
----------- ------------ ------------ ------------ -------------
TOTAL COMMON STOCKS
(Cost $14,480,323, $72,519,440,
$223,328,935, $159,813,145 and
$362,472 respectively) 19,114,986 101,838,673 311,382,687 243,592,075 526,047,911
----------- ------------ ------------ ------------ -------------
</TABLE>
46
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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>
U.S. TREASURY
BONDS & NOTES
Percent of Net Assets 55.86% 48.58% 30.13% 17.96% 6.44%
U.S. Treasury
Bonds, 5.25%,
11/15/28 0 -- 0 -- 260,000 239,281 600,000 552,188 1,000,000 920,313
U.S. Treasury
Bonds, 6.00%,
02/15/26 0 -- 0 -- 0 -- 900,000 $ 912,375 1,570,000 $1,591,588
U.S. Treasury
Bonds, 6.13%,
11/15/27-08/15/29 0 -- 150,000 $ 157,125 500,000 $ 523,750 1,600,000 1,662,563 400,000 413,625
U.S. Treasury
Bonds, 6.25%,
08/15/23-05/15/30 200,000 $ 208,188 0 -- 500,000 520,469 1,300,000 1,353,219 2,610,000 2,761,879
U.S. Treasury
Bonds, 6.38%,
08/15/27 0 -- 0 -- 0 -- 600,000 639,563 1,400,000 1,492,313
U.S. Treasury
Bonds, 6.50%,
11/15/26 0 -- 0 -- 0 -- 600,000 648,375 0 --
U.S. Treasury
Bonds, 6.63%,
02/15/27 0 -- 0 -- 0 -- 500,000 549,062 0 --
U.S. Treasury
Bonds, 6.75%,
08/15/26 0 -- 570,000 634,481 0 -- 500,000 556,562 0 --
U.S. Treasury
Bonds, 6.88%,
08/15/25 0 -- 0 -- 500,000 562,656 600,000 675,188 1,420,000 1,597,945
U.S. Treasury
Bonds, 7.13%,
02/15/23 0 -- 350,000 401,516 0 -- 910,000 1,043,941 1,500,000 1,720,782
U.S. Treasury
Bonds, 7.25%,
05/15/16-08/15/22 0 -- 0 -- 300,000 348,094 2,650,000 3,018,750 175,000 197,750
U.S. Treasury
Bonds, 7.50%,
11/15/16-11/15/24 150,000 180,281 0 -- 0 -- 1,950,000 2,279,766 1,000,000 1,201,875
U.S. Treasury
Bonds, 7.63%,
02/15/07-02/15/25 0 -- 0 -- 1,500,000 1,624,062 2,120,000 2,481,481 1,000,000 1,219,375
U.S. Treasury
Bonds, 7.88%,
02/15/21 0 -- 0 -- 0 -- 650,000 796,250 1,300,000 1,592,500
U.S. Treasury
Bonds, 8.00%,
11/15/21 100,000 124,562 0 -- 0 -- 500,000 622,812 1,600,000 1,993,000
U.S. Treasury
Bonds, 8.13%,
08/15/19-08/15/21 0 -- 200,000 251,625 1,250,000 1,559,156 1,010,000 1,269,863 2,130,000 2,659,406
U.S. Treasury
Bonds, 8.50%,
02/15/20 0 -- 0 -- 0 -- 200,000 257,938 0 --
U.S. Treasury
Bonds, 8.75%,
11/15/08-08/15/20 0 -- 0 -- 1,150,000 1,418,610 2,350,000 3,072,625 2,500,000 3,257,188
U.S. Treasury
Bonds, 8.88%,
08/15/17-02/15/19 0 -- 0 -- 0 -- 950,000 1,241,531 1,000,000 1,322,188
U.S. Treasury
Bonds, 9.00%,
11/15/18 0 -- 0 -- 0 -- 350,000 466,703 0 --
U.S. Treasury
Bonds, 9.13%,
05/15/09-05/15/18 0 -- 400,000 436,500 500,000 545,625 600,000 805,125 0 --
U.S. Treasury
Bonds, 9.25%,
02/15/16 0 -- 0 -- 0 -- 0 -- 810,000 1,075,781
U.S. Treasury
Bonds, 9.38%,
02/15/06 510,000 587,456 600,000 691,125 1,450,000 1,670,219 800,000 921,500 1,000,000 1,151,875
U.S. Treasury
Bonds, 9.88%,
11/15/15 0 -- 0 -- 0 -- 0 -- 1,000,000 1,386,250
U.S. Treasury
Bonds, 10.00%,
05/15/10 0 -- 0 -- 1,000,000 1,150,938 330,000 379,810 0 --
U.S. Treasury
Bonds, 10.63%,
11/15/09-08/15/15 0 -- 600,000 689,063 0 -- 450,000 612,719 1,950,000 2,637,485
U.S. Treasury
Bonds, 10.75%,
02/15/03-08/15/05 3,350,000 3,811,875 2,450,000 2,900,516 2,400,000 2,874,000 400,000 479,000 550,000 658,625
U.S. Treasury
Bonds, 11.13%,
08/15/03 1,650,000 1,868,625 400,000 453,000 600,000 679,5000 0 -- 0 --
U.S. Treasury
Bonds, 11.25%,
02/15/15 200,000 301,000 400,000 602,000 500,000 752,500 600,000 903,000 1,000,000 1,505,000
U.S. Treasury
Bonds, 11.63%,
11/15/02-11/15/04 0 -- 1,400,000 1,632,547 900,000 1,082,532 0 -- 0 --
U.S. Treasury
Bonds, 11.75%,
02/15/10-11/15/14 0 -- 550,000 665,844 230,000 321,137 710,000 991,338 0 --
U.S. Treasury
Bonds, 11.88%,
11/15/03 0 -- 1,490,000 1,734,454 950,000 1,105,860 0 -- 0 --
U.S. Treasury
Bonds, 12.00%,
05/15/05-08/15/13 200,000 247,875 0 -- 500,000 619,687 1,100,000 1,501,844 0 --
U.S. Treasury
Bonds, 12.38%,
05/15/04 0 -- 1,500,000 1,805,157 700,000 842,407 0 -- 0 --
U.S. Treasury
Bonds, 12.50%,
08/15/14 0 -- 0 -- 350,000 502,469 350,000 502,469 1,000,000 1,435,625
U.S. Treasury
Bonds, 13.75%,
08/15/04 500,000 632,031 0 -- 100,000 126,406 0 -- 0 --
U.S. Treasury
Bonds, 15.75%,
11/15/01 0 -- 0 -- 0 -- 1,600,000 1,774,000 0 --
U.S. Treasury
Notes, 4.25%,
11/15/03 0 -- 1,700,000 1,609,687 1,200,000 1,136,250 0 -- 0 --
U.S. Treasury
Notes, 4.75%,
02/15/04-11/15/08 1,600,000 1,514,000 4,050,000 3,790,968 3,500,000 3,301,812 0 -- 0 --
U.S. Treasury
Notes, 5.25%,
08/15/03-05/15/04 600,000 584,063 3,200,000 3,122,313 3,400,000 3,317,407 1,250,000 1,221,875 0 --
U.S. Treasury
Notes, 5.38%,
06/30/03 1,000,000 980,938 1,000,000 980,938 2,000,000 1,961,876 0 -- 0 --
U.S. Treasury
Notes, 5.50%,
08/31/01-05/15/09 2,675,000 2,613,000 8,600,000 8,429,471 12,400,000 12,173,189 1,530,000 1,486,969 0 --
U.S. Treasury
Notes, 5.63%,
09/30/01-05/15/08 1,700,000 1,669,187 8,110,000 7,990,174 9,200,000 9,068,378 2,000,000 1,973,360 0 --
U.S. Treasury
Notes, 5.75%,
10/31/02-08/15/03 5,350,000 5,302,688 9,450,000 9,364,642 8,000,000 7,926,939 1,300,000 1,287,813 0 --
U.S. Treasury
Notes, 5.88%,
10/31/01-11/15/05 3,450,000 3,430,438 7,650,000 7,603,893 16,700,000 16,604,724 750,000 745,547 300,000 298,219
U.S. Treasury
Notes, 6.00%,
07/31/02-08/15/09 300,000 301,781 4,200,000 4,206,626 5,200,000 5,207,064 1,900,000 1,892,875 0 --
U.S. Treasury
Notes, 6.13%,
12/31/01-08/15/07 4,300,000 4,329,782 6,700,000 6,714,221 4,450,000 4,460,376 450,000 453,656 0 --
U.S. Treasury
Notes, 6.25%,
10/31/01-02/15/07 7,500,000 7,514,471 9,250,000 9,288,051 9,350,000 9,385,239 2,710,000 2,720,898 0 --
U.S. Treasury
Notes, 6.38%,
09/30/01-08/15/02 3,700,000 3,706,908 8,400,000 8,415,691 6,600,000 6,609,879 2,000,000 2,005,626 0 --
U.S. Treasury
Notes, 6.50%,
08/31/01-02/15/10 5,350,000 5,460,440 13,700,000 13,924,784 15,920,000 16,234,190 1,950,000 1,993,454 1,200,000 1,228,688
U.S. Treasury
Notes, 6.63%,
03/31/02-05/15/07 0 -- 5,300,000 5,393,117 5,950,000 6,065,594 1,500,000 1,537,657 500,000 517,500
U.S. Treasury
Notes, 6.75%,
05/15/05 0 -- 0 -- 2,000,000 2,061,876 0 -- 0 --
</TABLE>
47
<PAGE>
MASTER INVESTMENT PORTFOLIO--
LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 2000 (Unaudited)
Schedules of Investments
<TABLE>
<CAPTION>
LifePath Income 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>
U.S. TREASURY BONDS & NOTES
(Continued)
U.S. Treasury Notes,
6.88%,
05/15/06 1,400,000 $ 1,457,313 3,000,000 $ 3,122,814 2,900,000 $ 3,018,720 1,410,000 $ 1,467,723 300,000 $ 312,281
U.S. Treasury Notes,
7.00%,
07/15/06 2,000,000 2,095,626 3,500,000 3,667,346 4,840,000 5,071,415 1,100,000 1,152,594 0 --
U.S. Treasury Notes,
7.25%, 05/15/04-
08/15/04 1,250,000 1,301,563 5,400,000 5,615,532 4,800,000 4,994,563 1,250,000 1,301,563 0 --
U.S. Treasury Notes,
7.50%, 11/15/01-
02/15/05 2,350,000 2,424,188 4,150,000 4,240,516 5,850,000 6,043,002 1,400,000 1,477,874 100,000 105,563
U.S. Treasury Notes,
7.88%, 08/15/01-
11/15/04 750,000 760,781 700,000 746,158 1,700,000 1,812,095 0 -- 0 --
----------- ------------ ------------ ----------- -----------
TOTAL U.S. TREASURY
BONDS & NOTES
(Cost $53,641,570,
$121, 513,479,
$145,213, 784,
$ 54,339,773 and
$35, 386,067,
respectively) 53,409,060 121,281,895 145,523,946 55,691,044 36,254,619
----------- ------------ ------------ ----------- -----------
SHORT TERM INSTRUMENTS
Percent of Net
Assets 2.02% 6.00% 8.61% 7.77% 9.19%
Goldman Sachs
Financial
Square Prime
Obligation
Fund ++ 498,542 498,592 5,596,742 5,596,742 11,713,785 11,7136,656,519 6,656,14,540,82014,540,820
Short Term
Investment
Company Liquid
Assets Portfolio ++ 1,000,000 1,000,000 6,000,000 6,000,000 20,514,753 20,514.000 12,000,000 12,000,000 26,000,000 26,000,000
Federal Home Loan
Mortgage
Corporation
Discount
Note, 6.43%,
10/24/00 ++ 168,906 168,906 1,307,110 1,307,110 3,632,594 3,632,594 2,102,842 2,102,842 4,522,022 4,522,022
Providian Temp Cash
Money Market
Fund ++ 266,277 266,277 2,060,634 2,060,634 5,726,715 5,726,715 3,315,091 3,315,091 6,707,658 6,707,658
TOTAL SHORT TERM
INSTRUMENTS
(Cost $1,933,725,
$14,964,486,
$41,587,
847, $ 24,074,452
and $51,770,500,
respectively) 1,933,725 14,964,486 41,587,847 24,074,452 51,770,500
REPURCHASE AGREEMENT
Percent of Net Assets 23.80% 10.27% 5.23% 3.48% 0.24%
Morgan Stanley Tri
Party Repurchase
Agreement,
dated 8/31/00, due
09/01/00, with
a maturity value of
$ 85,816,892 and
an effective
yield of 6.35%. 22,755,814 22,755,814 25,637,236 25,637,236 25,273,471 25,273,471 10,784,020 10,784,20 1,351,216 1,351,216
TOTAL REPURCHASE
AGREEMENT
(Cost $22,755,814,
$25,637,236,
$25,273,471,
$ 10,784,020 and
$1,351,216,
respectively) 22,755,814 25,637,236 25,273,471 10,784,020 1,351,216
========== ========== ========== ========== ========
TOTAL INVESTMENTS
IN SECURITIES
(Cost
$92,811,432,
$234,634,641,
$435,404,037,
$ 249,011,390
and
$450,980,448,
respectively) 101.67% $97,213,585 105.64% $263,722,290 108.43% $523,767,951 107.77% $ 334,141592 109.27% $615,424,246
Other Assets
and Liabilities,
Net (1.67) (1,593,891) (5.64) (14,070,036) (8.43) (40,707,324) (7.77) (24,085,460 (9.27) (52,189,657)
------------------ -------------------- ---------------------- ---------------------- ---------------------
TOTAL NET ASSETS 100.00% $95,619,694 100.00% $249,652,254 100.00% $483,060,627 100.00% $310,056,131 100.00% $ 563,234,589
================== ==================== ====================== ====================== =====================
</TABLE>
+ Non-income earning securities.
++ Represents investment of collateral received from securities lending
transactions. See Note 4.
The accompanying notes are an integral part of the
financial statements.
48
<PAGE>
MASTER INVESTMENT PORTFOLIO
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
LifePath Income 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 at cost $ 92,811,432 $ 234,634,641 $ 435,404,037 $ 249,011,390 $ 450,980,448
-------------- -------------- ------------- -------------- ---------------
Investments at market value (Note 1) $ 74,457,771 $ 238,085,054 $ 498,494,480 $ 323,357,571 $ 614,073,030
Repurchase agreements (Note 1) 22,755,814 25,637,236 25,273,471 10,784,020 1,351,216
-------------- -------------- ------------- -------------- ---------------
Total investments in securities 97,213,585 263,722,290 523,767,951 334,141,591 615,424,246
Receivables:
Investment securities sold -- -- 90,000 66,000 156,000
Dividends and interest 599,117 1,546,971 2,037,225 727,045 947,693
-------------- -------------- ------------- -------------- ---------------
Total Assets 97,812,702 265,269,261 525,895,176 334,934,636 616,527,939
-------------- -------------- ------------- -------------- ---------------
LIABILITIES
Payables:
Collateral for securities
loaned (Note 4) 1,933,725 14,964,486 41,587,847 24,074,452 51,770,500
Due to BGI (Note 2) 259,283 652,521 1,246,702 804,053 1,522,850
-------------- -------------- ------------- -------------- ---------------
Total Liabilities 2,193,008 15,617,007 42,834,549 24,878,505 53,293,350
-------------- -------------- ------------- -------------- ---------------
NET ASSETS $ 95,619,694 $ 249,652,254 $ 483,060,627 $ 310,056,131 $ 563,234,589
============== ============== ============= ============== ===============
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
49
<PAGE>
MASTER INVESTMENT PORTFOLIO
STATEMENTS OF OPERATIONS
For the Six Months Ended August 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
Master Portfolio Master Portfolio Master Portfolio Master Portfolio Master Portfolio
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
Dividends + $ 140,717 $ 732,721 $ 1,994,048 $ 1,598,567 $ 3,460,059
Interest ++ 2,192,118 3,918,698 4,534,695 1,513,453 468,170
------------- ------------ ------------ ------------ ------------
Total investment income 2,332,835 4,651,419 6,528,743 3,112,020 3,928,229
------------- ------------ ------------ ------------ ------------
EXPENSES (Note 2)
Advisory fees 259,282 652,521 1,246,702 804,053 1,522,850
------------- ------------ ------------ ------------ ------------
Total expenses 259,282 652,521 1,246,702 804,053 1,522,850
------------- ------------ ------------ ------------ ------------
Net investment income 2,073,553 3,998,898 5,282,041 2,307,967 2,405,379
------------- ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain on sale of investments 3,619,518 8,128,815 12,163,265 6,844,122 23,459,612
Net change in unrealized appreciation
(depreciation) of investments (662,112) 1,736,694 12,160,995 14,369,713 19,763,487
------------- ------------ ------------ ------------ ------------
Net gain on investments 2,957,406 9,865,509 24,324,260 21,213,835 43,223,099
------------- ------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 5,030,959 $ 13,864,407 $ 29,606,301 $ 23,521,802 $ 45,628,478
============= ============ ============ ============ ============
+ Net of foreign withholding tax of: 5,625 $ 24,281 $ 60,384 $ 57,058 $ 107,229
++ Interest income includes securities
lending income of: 1,382 $ 12,277 $ 37,605 $ 26,482 $ 60,803
</TABLE>
The accompanying notes are an integral part of these financial statements.
50
<PAGE>
MASTER INVESTMENT PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath Income Master Portfolio LifePath 2010 Master Portfolio
------------------------------------ ----------------------------------
For the Six For the Six
Months Ended For the Months Ended For the
August 31, 2000 Year Ended August 31, 2000 Year Ended
(Unaudited) February 29, 2000 (Unaudited) February 29, 2000
------------------------------------ ----------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 2,073,553 $ 4,330,040 $ 3,998,898 $ 7,464,247
Net realized gain 3,619,518 2,506,435 8,128,815 17,805,780
Net change in unrealized appreciation (depreciation) (662,112) (1,106,762) 1,736,694 (6,180,937)
--------------- --------------- --------------- --------------
Net increase in net assets resulting from operations 5,030,959 5,729,713 13,864,407 19,089,090
--------------- --------------- --------------- --------------
Interestholder transactions:
Contributions 13,866,851 43,145,007 45,826,394 94,838,352
Withdrawals (17,338,902) (71,554,344) (39,270,166) (128,256,885)
--------------- --------------- --------------- --------------
Net increase (decrease) in net assets resulting from
interestholder transactions (3,472,051) (28,409,337) 6,556,228 (33,418,533)
--------------- --------------- --------------- --------------
Increase (decrease) in net assets 1,558,908 (22,679,624) 20,420,635 (14,329,443)
NET ASSETS:
Beginning of period 94,060,786 116,740,410 229,231,619 243,561,062
--------------- --------------- --------------- --------------
End of period $ 95,619,694 $ 94,060,786 $ 249,652,254 $ 229,231,619
=============== =============== =============== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
51
<PAGE>
MASTER INVESTMENT PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
LifePath Income Master Portfolio LifePath 2010 Master Portfolio
------------------------------------ ----------------------------------
For the Six For the Six
Months Ended For the Months Ended For the
August 31, 2000 Year Ended August 31, 2000 Year Ended
(Unaudited) February 29, 2000 (Unaudited) February 29, 2000
------------------------------------ ----------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 5,282,041 $ 8,682,071 $ 2,307,967 $ 4,706,083
Net realized gain 12,163,265 33,627,531 6,844,122 31,399,199
Net change in unrealized appreciation (depreciation) 12,160,995 (2,423,834) 14,369,713 (1,042,385)
------------- --------------- --------------- --------------
Net increase in net assets resulting from operations 29,606,301 39,885,768 23,521,802 35,062,897
------------- --------------- --------------- --------------
Interestholder transactions:
Contributions 126,357,753 168,045,167 51,173,633 88,855,257
Withdrawals (66,433,754) 180,564,241) (36,857,981) 128,529,895)
------------- --------------- --------------- --------------
Net increase (decrease) in net assets resulting from
interestholder transactions 59,923,999 (12,519,074) 14,315,652 (39,674,638)
------------- --------------- --------------- --------------
Increase (decrease) in net assets 89,530,300 27,366,694 37,837,454 (4,611,741)
NET ASSETS:
Beginning of period 393,530,327 366,163,633 272,218,677 276,830,418
------------- --------------- --------------- --------------
End of period $ 483,060,627 $ 393,530,327 $ 310,056,131 $ 272,218,677
============= =============== =============== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
52
<PAGE>
MASTER INVESTMENT PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
LifePath Income Master Portfolio
------------------------------------
For the Six
Months Ended For the
August 31, 2000 Year Ended
(Unaudited) February 29, 2000
------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 2,405,379 $ 5,036,306
Net realized gain 23,459,612 52,425,320
Net change in unrealized appreciation (depreciation) 19,763,487 19,635,208
-------------- ---------------
Net increase in net assets resulting from operations 45,628,478 77,096,834
-------------- ---------------
Interestholder transactions:
Contributions 61,791,381 194,264,394
Withdrawals (84,045,168) 224,020,215)
-------------- ---------------
Net (decrease) in net assets resulting from interestholder transactions (22,253,787) (29,755,821)
-------------- ---------------
Increase in net assets 23,374,691 47,341,013
NET ASSETS:
Beginning of period 539,859,898 492,518,885
-------------- ---------------
End of period $ 563,234,589 $ 539,859,898
============== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
53
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (Unaudited)(Continued)
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 as a Delaware business trust pursuant to
an Agreement and Declaration of Trust dated October 21, 1993, and had no
operations prior to March 1, 1994. MIP currently issues the following separate
portfolios: Asset Allocation, Bond Index, Extended Index, International Index,
LifePath Income, LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040,
Money Market, S&P 500 Index and U.S. Equity Index Master Portfolios.
These financial statements relate to the LifePath Income, LifePath 2010,
LifePath 2020, LifePath 2030 and LifePath 2040 Master Portfolios (each, a
"Master Portfolio", collectively the "Master Portfolios").
The following is a summary of significant accounting policies which are
consistently followed by the 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 sales 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.
Original issue discount and discount on securities purchased are accreted as
interest income using a constant yield to maturity method. Premiums on
securities purchased are amortized as a reduction in interest income using a
constant yield to maturity method.
FEDERAL INCOME TAXES
MIP believes that each Master Portfolio has and will continue to be
operated in a manner so as to qualify it as a partnership for federal income tax
purposes. Provided that each Master Portfolio so qualifies, it will not be
subject to any federal income tax on its income and gain (if any). However, each
investor in a Master Portfolio will be taxable on its distributive share of the
Master Portfolio's taxable income in determining its federal income tax
liability. As a partnership for federal income tax purposes, each Master
Portfolio will be deemed to have "passed through" to interestholders any
interest, dividends, gains or losses for such purposes. The determination of
such share will be made in accordance with the Internal Revenue Code of 1986, as
amended (the "Code"), and regulations promulgated thereunder.
It is intended that each Master Portfolio's assets, income and
distributions will be managed in such a way that an entity electing and
qualifying as a "regulated investment company" under the Code can continue to so
qualify by investing substantially all of its assets through the Master
Portfolio, provided that the regulated investment company meets other
requirements for such qualification not within the control of the Master
Portfolio (e.g. distributing at least 90% of the regulated investment company's
"investment company taxable income" annually).
FUTURES CONTRACTS
The Master Portfolios may purchase long 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
54
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (Unaudited)(Continued)
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 securities or high quality, liquid debt instruments in connection
with long 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 August 31, 2000, there were no open long 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 Schedule 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 the repurchase price.
The repurchase agreements entered into on August 31, 2000 by the Master
Portfolios were fully collateralized by U.S. Government obligations with a rate
of 5.50%, a maturity date of 02/28/03 and an aggregate market value of
$87,548,481.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFLIATES
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
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 sponsor and placement agent for the
Master Portfolios.
The MIP has entered into administration services arrangements with BGI and
Stephens, as co-administrators, who have agreed jointly to provide general
administration services to the Master Portfolios, such as managing and
coordinating third-party service relationships. BGI and Stephens are not
entitled to compensation for providing administration services to the Master
Portfolios. BGI and Stephens may delegate certain of their administration duties
to sub-administrators.
Certain officers and trustees of MIP are also officers of Stephens. As of
August 31, 2000, these officers of Stephens collectively owned less than 1% of
the Master Portfolios' outstanding beneficial interests.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities, for
each Master Portfolio for the six months ended August 31, 2000, were as follows:
55
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
Aggregate Purchases LifePath Income LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
and Sales of: Master Portfolio Master Portfolio Master Portfolio Master Portfolio Master Portfolio
--------------------------------------------- ----------------- ----------------- ----------------- -----------------
U.S. GOVERNMENT OBLIGATIONS:
<S> <C> <C> <C> <C> <C>
Purchases at cost $ 2,969,541 $28,194,766 $63,324,207 $22,904,625 $34,096,634
Sales proceeds 11,367,132 22,266,375 33,376,181 9,572,016 3,321,569
OTHER SECURITIES:
Purchases at cost $ 9,531,498 $41,636,481 $79,476,353 $35,700,653 $38,325,264
Sales proceeds 12,211,307 48,436,996 54,942,885 36,244,240 87,634,003
</TABLE>
As of August 31, 2000 the Master Portfolios' aggregate unrealized
appreciation and depreciation based on cost for federal income tax purposes were
as follows:
<TABLE>
<CAPTION>
Tax Unrealized Unrealized Net Unrealized
Master Portfolio Cost Appreciation Depreciation Appreciation
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LifePath Income Master $ 92,811,432 $ 5,724,933 $ (1,322,780) $ 4,402,153
Portfolio
LifePath 2010 Master Portfolio 234,634,641 32,730,382 (3,642,733) 29,087,649
LifePath 2020 Master Portfolio 435,404,037 99,281,379 (10,917,465) 88,363,914
LifePath 2030 Master Portfolio 249,011,390 94,048,787 (8,918,586) 85,130,201
LifePath 2040 Master Portfolio 450,980,448 189,508,547 (25,064,749) 164,443,798
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of August 31, 2000, the Master Portfolios had loaned securities which
were collateralized by cash. The cash collateral received was invested in U.S.
Government Agency obligations and money market mutual funds. Each Master
Portfolio receives transaction fees for providing services in connection with
the securities lending program. The risks to the Master 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>
Value of Value of
Master Portfolio Securities Collateral
------------------------------------------------------------------------------------
<S><C> <C> <C>
LifePath Income Master Portfolio $ 1,872,563 $ 1,933,725
LifePath 2010 Master Portfolio 14,533,869 14,964,486
LifePath 2020 Master Portfolio 40,313,331 41,587,847
LifePath 2030 Master Portfolio 23,295,075 24,074,452
LifePath 2040 Master Portfolio 50,152,653 51,770,500
</TABLE>
5. FINANCIAL HIGHLIGHTS
The ratios of expenses to average net assets, net investment income to
average net assets and portfolio turnover rates, excluding short-term
securities, for the Master Portfolios were as follows:
56
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
Six For the
Months Ended Year Ended
August 31, 2000 February 29,
(Unaudited) 2000
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LifePath Income Master Portfolio
Ratio of expenses to average net assets + 0.55% 0.55%
Ratio of net investment income to average net assets + 4.40% 4.03%
Portfolio turnover rate 16% 55%
LifePath 2010 Master Portfolio
Ratio of expenses to average net assets + 0.55% 0.55%
Ratio of net investment income to average net assets + 3.37% 3.20%
Portfolio turnover rate 33% 49%
LifePath 2020 Master Portfolio
Ratio of expenses to average net assets + 0.55% 0.55%
Ratio of net investment income to average net assets + 2.33% 2.27%
Portfolio turnover rate 21% 43%
LifePath 2030 Master Portfolio
Ratio of expenses to average net assets + 0.55% 0.55%
Ratio of net investment income to average net assets + 1.58% 1.72%
Portfolio turnover rate 16% 26%
LifePath 2040 Master Portfolio
Ratio of expenses to average net assets + 0.55% 0.55%
Ratio of net investment income to average net assets + 0.87% 0.99%
Portfolio turnover rate 13% 29%
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized for periods of less than one year.
57
