<PAGE>
NestEgg Funds
Annual Report
For the Period Ended February 29, 2000
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.
1
<PAGE>
Letter from the President April, 2000
Dear Shareholder:
The fiscal year ended February 29, 2000 was one of significant change, growth,
and opportunity. Highlights from the year include:
. The Dow Jones Industrial Average, which measures the value of 30 actively
traded, well-established U.S. companies, surpassed 10,000 points on March
16, 1999, but in January 2000 posted its worst January performance since
1990.
. The return of the Standard and Poor's 500 Index, which measures the
performance of 500 widely-held industrial, transportation, financial, and
utility stocks of U.S. companies, surpassed 20% for the fifth consecutive
year.
. On February 1, 2000 the economic boom became the longest in history, with
107 months of expansion.
. The Federal Reserve Board raised short-term interest rates four times
during the fiscal year.
As we look back on another year in which the Dow Jones Industrial Average and
the S&P 500 Index reached record-high levels, we urge investors to maintain a
long-term perspective and continue to utilize an asset allocation strategy when
making investment decisions. While one Fund's recent performance may be better
than that of another, 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
comprehensive asset allocation strategies. Each Fund is designed to reflect
different investment goals and risk tolerances. All of the NestEgg Funds are
strategically invested in the three major asset classes according to each fund's
specific time objective. You're invested in a mix of mutual funds that our
investment managers believe may be suited to your goals.
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
2
<PAGE>
Portfolio Performance Discussion
- --------------------------------
NestEgg Funds February 29, 2000
- -------------------------------------------------------------------
The NestEgg Funds' objective is growing assets while taking on the levels of
risk that investors, on average, may be willing to accept given their investment
time horizons. The Funds' strategies assume that the investor will begin to
withdraw his or her investment in the decade included in the Fund's name. In the
case of the NestEgg 2000 Fund it is assumed that the investor will begin
withdrawing his or her investment during the current decade. Investors in the
NestEgg 2040 Fund would plan to withdraw their investments beginning in 2040.
Assets in the NestEgg 2040 Fund, therefore, are invested almost entirely in
stocks because investors can wait out the short-term ups and downs of the
markets in return for greater potential rewards over the long term. By contrast,
roughly 80% of the assets in the NestEgg 2000 Fund are invested more
conservatively in short-term, low-risk bonds and money market instruments, while
the remaining roughly 20% are invested in stocks.
The models used to manage the NestEgg Funds' assets are "strategic" and
"tactical".
Strategic asset allocation techniques directly affect 75% of each of the NestEgg
Funds' total asset allocation and indirectly guide the remaining 25%. The
strategic model focuses on long-term asset allocation by comparing the potential
risks and returns for each asset class based on the Funds' different time
horizons and investors' willingness to bear risk. As each Fund nears its target
date, the asset allocation becomes more conservative, shifting to less risky
investments -- such as short-term bonds or money market investments. Short-term
volatility in the markets has only a small effect on a Fund's long-term
strategic allocation. The progression to less risky assets is an ongoing
process; 40 years from now, the asset allocation of the NestEgg 2040 Fund will
look very similar to the asset allocation of the NestEgg 2000 Fund today.
Tactical asset allocation techniques affect 25% of each of the NestEgg Funds'
total asset allocation. The tactical models are the means by which the Funds
respond to short-term market fluctuations. The tactical models do this by
seeking to allocate assets where the risk-return trade-offs are most attractive.
The more conservative tactical approach allocates assets among long-term bonds,
short-term bonds and money market investments. The more aggressive tactical
approach allocates assets among stocks, bonds, and cash. The allocation between
these two tactical approaches is guided by the Funds' strategic allocation.
On February 29, 2000, assets in the NestEgg Funds were allocated as follows:
U.S. International U.S. Money
Fund Equity Equity Bonds Market*
---- ------ ------------ ----- -------
NestEgg 2000 15% 6% 65% 14%
NestEgg 2010 34% 11% 49% 6%
NestEgg 2020 52% 15% 29% 4%
NestEgg 2030 63% 20% 15% 2%
NestEgg 2040 78% 21% 1% 0%
*The percentage of the Funds' assets that are invested in money market
instruments is net of the Funds' other assets and liabilities.
3
<PAGE>
Portfolio Performance Discussion
- --------------------------------
NestEgg Funds February 29, 2000
- -------------------------------------------------------------------
Some of the NestEgg Funds underperformed their respective customized benchmarks
for the fiscal year ended February 29, 2000. The bulk of the underperformance
came in February, when small company stocks, as measured by Nasdaq, posted a
staggering 19.2% return. At that time, the strategic asset allocation model for
the NestEgg Funds had a smaller portion of the Funds' assets allocated to small
company stocks than their respective benchmarks did. Although the degree of
underweighting was not severe, the enormous return to these small stocks in
February made even slight allocation differences noticeable. As would be
expected, the greater the benchmark allocation to small company stocks, the more
pronounced the underperformance was. Hence, the NestEgg Funds with longer time
horizons that have a higher allocation to small company stocks, suffered a
greater disparity of performance compared to their benchmarks than did the Funds
with shorter time horizons.
Conversely, the strategic underweightings in the bond market added value. Rising
interest rates during the year meant falling bond prices. These losses were
mitigated by an underweighted position in bonds relative to the Funds'
benchmarks. Due to their greater benchmark allocation to bonds, the NestEgg
Funds with shorter time horizons benefited more from the underweighting than the
Funds with longer horizons. However, the tactical component of the Funds with
longer time horizons was used successfully to help respond to the shift in the
interest-rate environment. The negative impact of rising interest rates is more
pronounced in longer-duration bonds, which are held in the Funds with longer
horizons. Through tactical shifts to lower-duration bonds, the Funds' exposure
to the risk of rising interest rates was reduced.
Although the slight underweighting in smaller company stocks hurt the Funds in
February, over the course of the entire year the Funds benefited from
participation in strong equity markets both domestically and abroad. The
overweighted position in international stocks was rewarded, as international
markets outperformed the U.S. market for the first time since 1993.
4
<PAGE>
NestEgg 2000 & NestEgg 2010
<TABLE>
<CAPTION>
NestEgg 2000 Lehman Agg. Lipper Flexible
Fund Bond Port. Fund
------ ---------- ---------------
<S> <C> <C> <C>
2/28/94 10,000 10,000 10,000
3/1/94 10,000 10,000 10,000
8/31/94 9,813 9,857 9,968
2/28/95 9,851 10,178 10,047
8/31/95 10,435 10,971 11,388
2/29/96 10,721 11,424 12,268
8/31/96 10,560 11,420 12,499
2/28/97 11,032 12,034 14,036
8/31/97 11,430 12,564 15,337
2/28/98 11,928 13,283 17,038
8/31/98 11,741 13,892 15,961
2/28/99 12,301 14,114 18,657
8/31/99 12,486 14,002 19,367
2/29/00 12,816 14,271 $ 20,263
</TABLE>
<TABLE>
<CAPTION>
NestEgg 2010
Fund
------
<S> <C>
2/28/94 10,000
3/1/94 10,000
8/31/94 9,863
2/28/95 9,954
8/31/95 10,865
2/29/96 11,472
8/31/96 11,366
2/28/97 12,352
8/31/97 13,141
2/28/98 14,112
8/31/98 13,490
2/28/99 15,053
8/31/99 15,513
2/29/00 16,143
</TABLE>
ANNUALIZED RATES OF RETURN FOR THE YEAR
ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
Lehman Bros. Lipper Flex.
NestEgg NestEgg Aggregate Portfolio
2000 2010 Bond Index (1) Fund Index (2)
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Year 4.19% 7.24% 1.10% 8.63%
5 Year 5.40% 10.15% 6.99% 15.06%
Since Inception (3/1/94) 4.22% 8.31% 6.11% 12.49%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Lehman Brothers Aggregate Bond Index is composed of the Lehman
Brothers Government/Corporate Index and the Lehman Brothers Mortgage-
Backed Securities Index and includes treasury issues, agency issues,
corporate bond issues and mortgage backed securities.
(2) The Lipper Flexible Portfolio Fund Index's return represent an average
of returns of certain mutual funds investing in domestic common
stocks, bonds and money market instruments in an asset allocation
strategy as tracked by Lipper, Inc.
5
<PAGE>
Portfolio Performance Discussion
- --------------------------------
NestEgg Funds February 29, 2000
- -------------------------------------------------------------------
The graphs above represent a comparison of a hypothetical $10,000 investment in
the indicated fund versus a similar investment in the Fund's benchmark. The
charts above show the average annual returns for the NestEgg Funds. The NestEgg
Funds invest their investable assets in the corresponding Master Portfolios. The
five-year returns represent performance of the affiliated feeder fund from March
1, 1995 through January 3, 1999 and the NestEgg Funds from January 4, 1999
through February 29, 2000. The since inception return represents the performance
of the affiliated feeder fund from March 1, 1994 through January 3, 1999 and the
NestEgg Funds from January 4, 1999 through February 29, 2000.
Performance shown above is the actual performance of each NestEgg Fund since
January 4, 1999 (its inception) and performance of the corresponding affiliated
feeder fund managed by Barclays Global Fund Advisors (BGFA): LifePath Income
Fund, LifePath 2010 Fund, LifePath 2020 Fund, LifePath 2030 Fund, and LifePath
2040 Fund. Each affiliated feeder fund's performance has been adjusted to
reflect the fees and expenses which apply to the applicable NestEgg Fund.
Past performance is not a prediction of future results. The Fund's investment
return and principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original purchase price.
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 an interest
in the net assets of the Master Portfolios. It is the Master Portfolios that
actually invest in the individual securities. Reference to "the Fund" are to the
feeder fund or the Master Portfolio.
6
<PAGE>
Portfolio Performance Discussion
--------------------------------
NestEgg Funds February 29, 2000
------------------------------------------------------
NestEgg 2020, NestEgg 2030 and NestEgg 2040
<TABLE>
<CAPTION>
NestEgg 2020 Wilshire Lipper Flexible
Fund 5000 Equity Port. Fund
------ ---------- ---------------
<S> <C> <C> <C>
2/28/94 10,000 10,000 10,000
3/1/94 10,000 10,000 10,000
8/31/94 9,897 10,185 9,968
2/28/95 10,034 10,528 10,047
8/31/95 11,103 12,423 11,388
2/29/96 11,897 14,131 12,268
8/31/96 11,793 14,562 12,499
2/28/97 13,172 17,265 14,036
8/31/97 14,293 19,990 15,337
2/28/98 15,741 23,218 17,038
8/31/98 14,603 20,524 15,961
2/28/99 17,121 26,547 18,657
8/31/99 17,896 27,863 19,367
2/29/00 18,867 $ 32,170 20,263
</TABLE>
NestEgg 2030
<TABLE>
<CAPTION>
Fund
------
<S> <C>
2/28/94 10,000
3/1/94 10,000
8/31/94 9,905
2/28/95 10,038
8/31/95 11,288
2/29/96 12,254
8/31/96 12,159
2/28/97 13,845
8/31/97 15,208
2/28/98 17,083
8/31/98 15,511
2/28/99 18,788
8/31/99 19,742
2/29/00 21,094
</TABLE>
NestEgg 2040
<TABLE>
<CAPTION>
Fund
------
<S> <C>
2/28/94 10,000
3/1/94 10,000
8/31/94 10,021
2/28/95 10,145
8/31/95 11,491
2/29/96 12,629
8/31/96 12,650
2/28/97 14,638
8/31/97 16,273
2/28/98 18,468
8/31/98 16,356
2/28/99 20,600
8/31/99 21,919
2/29/00 23,764
</TABLE>
ANNUALIZED RATES OF RETURN FOR THE YEAR
ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
Wilshire Lipper Flex.
NestEgg NestEgg NestEgg 5000 Equity Portfolio
2020 2030 2040 Fund Index (1) Fund Index (2)
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Year 10.20% 12.28% 15.36% 21.18% 8.63%
5 Year 12.72% 15.07% 17.53% 25.03% 15.06%
Since Inception (3/1/94) 11.17% 13.25% 15.53% 21.50% 12.49%
</TABLE>
(1) The Wilshire 5000 Equity Index is composed of domestic equity
securities of companies in addition to a very small number of limited
partnerships and REITS.
(2) The Lipper Flexible Portfolio Fund Index's return represent an average
of returns of certain mutual funds investing in domestic common
stocks, bonds and money market
7
<PAGE>
Portfolio Performance Discussion
- --------------------------------
NestEgg Funds February 29, 2000
- --------------------------------------------------------------
The graphs above represent a comparison of a hypothetical $10,000 investment in
the indicated fund versus a similar investment in the Fund's benchmark. The
charts above show the average annual returns for the NestEgg Funds. The NestEgg
Funds invest their investable assets in the corresponding Master Portfolios. The
five-year returns represent performance of the affiliated feeder fund from March
1, 1995 through January 3, 1999 and the NestEgg Funds from January 4, 1999
through February 29, 2000. The since inception return represents the performance
of the affiliated feeder fund from March 1, 1994 through January 3, 1999 and the
NestEgg Funds from January 4, 1999 through February 29, 2000.
During the period shown, certain of the funds' fees and expenses may have been
reduced and/or reimbursed. If such fee reductions and/or reimbursements had not
occurred, the actual performance of the funds would have been lower.
Performance shown above is the actual performance of each NestEgg Fund since
January 4, 1999 (its inception) and performance of the corresponding affiliated
feeder fund managed by Barclays Global Fund Advisors (BGFA): Lifepath Income
Fund, LifePath 2010 Fund, LifePath 2020 Fund, LifePath 2030 Fund, and LifePath
2040 Fund. Each affiliated feeders Fund's performance has been adjusted to
reflect the fees and expenses which apply to the applicable NestEgg Fund.
Past performance is not a prediction of future results. The Fund's investment
return and principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original purchase price.
The NestEgg Funds do not have their own investment adviser. They 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 an interest in the net assets of the Master
Portfolios. It is the Master Portfolios that actually invests in the individual
securities. Reference to "the Fund" are to the feeder fund or the Master
Portfolio.
8
<PAGE>
NestEgg Funds
NestEgg 2000 Fund
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
February 29, 2000
<S> <C> <C>
Assets:
Investments in the LifePath Income Master Portfolio at value (Note 1) $ 5,868,405
Receivable from Intrust Bank, N.A. 21,630
Receivable for capital shares sold 1,960
-----------
Total Assets 5,891,995
Liabilities:
Accrued expenses and other payables:
Other payables and accrued expenses 15,796
-----------
Total Liabilities 15,796
-----------
Net Assets consist of:
Paid in Capital $ 5,857,710
Accumulated undistributed (distributions in excess of)
net investment income/(loss) 3,421
Accumulated undistributed (distributions in excess of) net realized
gains/(losses) on investment transactions (3,299)
Net unrealized appreciation/(depreciation) from investments 18,367
-----------
Net Assets $ 5,876,199
===========
Outstanding shares of Beneficial Interest: Service Class 590,451
Offering and redemption price per share $ 9.95
===========
<CAPTION>
Statement of Operations
For the year ended February 29, 2000
<S> <C> <C>
Investment Income:
Investment Income allocated from corresponding Master Portfolio
Interest income $ 127,812
Dividend income 8,575
Expenses (Note 3) (16,282)
-----------
Net Investment Income allocated from corresponding Master Portfolio 120,105
Expenses:(Note 3)
Offering expense 15,138
Fund accounting fees 10,830
Printing expense 8,765
Shareholder services expense 7,366
12b-1 fees 7,366
Legal expense 6,677
Administration expense 5,892
Audit expense 4,864
Investment advisory fees 4,419
State registration expense 4,042
Other 544
Custodian fees 589
Transfer agent fees 452
---------
Total expenses before waivers/reimbursements 76,944
Less expenses waived/reimbursed (49,097)
-----------
Net Expenses 27,847
-----------
Net Investment Income 92,258
-----------
Realized and Unrealized Gains/(Losses) on Investments
allocated from corresponding Master Portfolio:
Net realized gains/(losses) on investment
transactions (3,161)
Net change in unrealized appreciation/(depreciation) of
investments 42,916
-----------
Net realized and unrealized gains/(losses) on
investments 39,755
-----------
Increase/(Decrease) in Net Assets Resulting from
Operations $ 132,013
===========
</TABLE>
See notes to financial statements
9
<PAGE>
NestEgg Funds
NestEgg 2000 Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
------------------ -------------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 92,258 $ 4,454
Net realized gains/(losses) on investment transactions (3,161) (138)
Net change in unrealized appreciation/(depreciation) from investments 42,916 (24,549)
------------ --------------
Change in net assets resulting from operations 132,013 (20,233)
------------ --------------
Distributions to Shareholders:
From net investment income (93,291) -
Tax return of capital (4,475) -
------------ --------------
Change in net assets from shareholder distributions (97,766) -
Capital Share Transactions:
Proceeds from shares issued 7,259,910 1,403,579
Dividends reinvested 97,766 -
Cost of shares redeemed (2,831,819) (67,251)
------------ --------------
Change in net assets from capital share transactions 4,525,857 1,336,328
------------ --------------
Change in net assets 4,560,104 1,316,095
Net Assets:
Beginning of period 1,316,095 -
------------ --------------
End of period $ 5,876,199 $ 1,316,095
============ ==============
Share Transactions:
Issued 726,610 139,775
Reinvested 9,800 -
Redeemed (278,982) (6,752)
------------ --------------
Change in shares 457,428 133,023
============ ==============
</TABLE>
(a) The fund commenced operations on January 4, 1999
See notes to financial statements
10
<PAGE>
NestEgg Funds
NestEgg 2000 Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
--------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 9.89 $ 10.00
--------------- -----------------
Investment Activities
Net investment income 0.31 0.03
Net realized and unrealized gains on investments 0.09 (0.14)
--------------- -----------------
Total from Investment Activities 0.40 (0.11)
--------------- -----------------
Distributions
Net investment income (0.34) -
Tax return of capital - ** -
--------------- -----------------
Total Distributions (0.34)
--------------- -----------------
Net Asset Value, End of Period $ 9.95 $ 9.89
=============== =================
Total Return (excludes sales charge) 4.19% (1.10%) (b)
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 5,876 $ 1,316
Ratio of expenses to average net assets 1.49% 1.50% (c)
Ratio of net investment income to average net assets 3.12% 2.68% (c)
Ratio of expenses to average net assets* 3.16% 12.20% (c)
Portfolio Turnover Rate 55% (d) 66% (d)
</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
11
<PAGE>
NestEgg Funds
NestEgg 2010 Fund
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
February 29, 2000
<S>
Assets: <C> <C>
Investment in the LifePath 2010 Master Portfolio at value (Note 1) $ 13,661,152
Receivable from Intrust Bank, N.A. 24,809
Receivable for capital shares sold 8,366
------------
Total Assets 13,694,327
Liabilities:
Accrued expenses and other payables:
Other payables and accrued expenses 23,684
-------
Total Liabilities 23,684
------------
Net Assets consist of:
Paid in Capital $ 13,499,268
Accumulated undistributed net investment
income/(loss) 5,324
Accumulated undistributed net realized gains/(losses) on
investment transactions 20,303
Net unrealized appreciation/(depreciation) from investments 145,748
------------
Net Assets $ 13,670,643
============
Outstanding shares of Beneficial Interest:Service Class 1,317,748
Offering and redemption price per share $ 10.37
============
<CAPTION>
Statement of Operations
For the year ended February 29, 2000
<S> <C> <C>
Investment Income:
Investment Income allocated from corresponding Master Portfolio
Interest income $ 171,888
Dividend income 33,186
Expenses (Note 3) (30,006)
-----------
Net Investment Income allocated from corresponding Master Portfolio 175,068
Expenses:(Note 3)
Offering expense 26,381
Fund accounting fees 14,324
12b-1 fees 13,578
Shareholder services expense 13,578
Audit expense 12,128
Printing expense 11,877
Administration expense 10,862
Legal expense 10,801
Investment advisory fees 8,147
Transfer agent fees 4,248
Other 3,338
Custodian fees 1,086
Total expenses before waivers/reimbursements
Less expenses waived/reimbursed 130,348
(78,887)
Net Expenses -----------
51,461
Net Investment Income -----------
123,607
-----------
Realized and Unrealized Gains/(Losses) on Investments
allocated from corresponding Master Portfolio:
Net realized gains/(losses) on investment
transactions 37,272
Net change in unrealized appreciation/(depreciation) of
investments 213,016
-----------
Net realized and unrealized gains/(losses) on
investments 250,288
-----------
Increase/(Decrease) in Net Assets Resulting from
Operations $ 373,895
===========
</TABLE>
See notes to financial statements
12
<PAGE>
NestEgg Funds
NestEgg 2010 Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
------------------ --------------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 123,607 $ 8,054
Net realized gains/(losses) on investment transactions 37,272 (2,987)
Net change in unrealized appreciation/(depreciation) from investments 213,016 (67,268)
------------------ -------------------
Change in net assets resulting from operations 373,895 (62,201)
------------------ -------------------
Distributions to Shareholders:
From net investment income (126,338) -
From net realized gains on investment transactions (13,981) -
------------------ -------------------
Change in net assets from shareholder distributions (140,319) -
Capital Share Transactions:
Proceeds from shares issued 14,259,858 3,316,827
Dividends reinvested 124,490 -
Cost of shares redeemed (3,676,143) (525,764)
------------------ -------------------
Change in net assets from capital share transactions 10,708,205 2,791,063
------------------ -------------------
Change in net assets 10,941,781 2,728,862
Net Assets:
Beginning of period 2,728,862 -
------------------ -------------------
End of period $ 13,670,643 $ 2,728,862
================== ===================
Share Transactions:
Issued 1,382,223 328,084
Reinvested 12,080 -
Redeemed (351,592) (53,047)
------------------- --------------------
Change in shares 1,042,711 275,037
=================== ====================
</TABLE>
(a) The Fund commenced operations on January 4, 1999
See notes to financial statements
13
<PAGE>
NestEgg Funds
NestEgg 2010 Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
-------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 9.92 $ 10.00
-------------------- ---------------------
Investment Activities
Net investment income 0.21 0.03
Net realized and unrealized gains on investments 0.50 (0.11)
-------------------- ---------------------
Total from Investment Activities 0.71 (0.08)
-------------------- ---------------------
Distributions
Net investment income (0.24) -
Net realized gains on investment transactions (0.02) -
-------------------- ---------------------
Total Distributions (0.26) -
-------------------- ---------------------
Net Asset Value, End of Period $ 10.37 $ 9.92
==================== =====================
Total Return (excludes sales charge) 7.24% (0.80%)(b)
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 13,671 $ 2,729
Ratio of expenses to average net assets 1.50% 1.29% (c)
Ratio of net investment income to average net assets 2.27% 2.46% (c)
Ratio of expenses to average net assets* 2.94% 8.26% (c)
Portfolio Turnover Rate 49% (d) 38% (d)
</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 statements
14
<PAGE>
NestEgg Funds
NestEgg 2020 Fund
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
February 29, 2000
<S> <C> <C>
Assets:
Investment in the LifePath 2020 Master Portfolio at value (Note 1) $ 18,936,563
Receivable from Intrust Bank, N.A. 8,103
Receivable for capital shares sold 18,394
-----------------
Total Assets 18,963,060
Liabilities:
Accrued expenses and other payables:
Payable from capital shares redeemed 71,908
Other payables and accrued expenses 60,989
------------
Total Liabilities 132,897
-----------------
Net Assets consist of:
Paid in Capital $ 18,408,752
Accumulated undistributed (distributions in excess of)
net investment income/(loss) 3,374
Accumulated undistributed net realized gains/(losses) on
investment transactions 29,659
Net unrealized appreciation/(depreciation) from investments 388,378
-----------------
Net Assets $ 18,830,163
=================
Outstanding shares of Beneficial Interest: Service Class 1,750,307
Offering and redemption price per share $ 10.76
=================
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
For the year ended February 29, 2000
<S> <C> <C>
Investment Income:
Investment Income allocated from corresponding Master Portfolio
Interest income $ 196,150
Dividend income 92,418
Expenses (Note 3) (56,755)
-----------
Net Investment Income allocated from corresponding Master Portfolio 231,813
Expenses: (Note 3)
Offering expense 72,545
Audit expense 45,040
Other 37,666
Printing expense 30,680
Shareholder services expense 25,780
12b-1 fees 25,780
Legal expense 23,042
Administration fees 20,624
Investment advisory fees 15,468
Transfer agent fees 2,452
Custodian fees 2,062
--------
Total expenses before waivers/reimbursements 301,139
Less expenses waived/reimbursed (203,844)
-----------
Net Expenses 97,295
-----------
Net Investment Income 134,518
-----------
Realized and Unrealized Gains/(Losses) on Investments
allocated from corresponding Master Portfolio:
Net realized gains/(losses) on investment
transactions 96,860
Net change in unrealized appreciation/(depreciation) of
investments 583,511
-----------
Net realized and unrealized gains/(losses) on
investments 680,371
-----------
Increase/(Decrease) in Net Assets Resulting from
Operations $ 814,889
===========
</TABLE>
See notes to financial statements
15
<PAGE>
NestEgg Funds
NestEgg 2020 Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
-------------- ----------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 134,518 $ 7,304
Net realized gains/(losses) on investment transactions 96,860 (8,509)
Net change in unrealized appreciation/(depreciation) from investments 583,511 (195,133)
-------------- -------------
Change in net assets resulting from operations 814,889 (196,338)
-------------- -------------
Distributions to Shareholders:
From net investment income (138,448) -
From net realized gains on investment transactions (58,692) -
-------------- -------------
Change in net assets from shareholder distributions (197,140) -
Capital Share Transactions:
Proceeds from shares issued 15,201,419 7,457,828
Dividends reinvested 141,970 -
Cost of shares redeemed (4,279,806) (112,659)
-------------- -------------
Change in net assets from capital share transactions 11,063,583 7,345,169
-------------- -------------
Change in net assets 11,681,332 7,148,831
Net Assets:
Beginning of period 7,148,831 -
-------------- -------------
End of period $ 18,830,163 $ 7,148,831
============== =============
Share Transactions:
Issued 1,420,302 731,007
Reinvested 13,390 -
Redeemed (403,094) (11,298)
-------------- -------------
Change in shares 1,030,598 719,709
============== =============
</TABLE>
(a) The Fund commenced operations on January 4, 1999
See notes to financial statements
16
<PAGE>
NestEgg Funds
NestEgg 2020 Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
------------- ------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 9.93 $ 10.00
------------- ------------------
Investment Activities
Net investment income 0.07 (e) 0.01
Net realized and unrealized gains on investments 0.94 (0.08)
------------- ------------------
Total from Investment Activities 1.01 (0.07)
------------- ------------------
Distributions
Net investment income (0.13) -
Net realized gains on investment transactions (0.05) -
------------- ------------------
Total Distributions (0.18) -
------------- ------------------
Net Asset Value, End of Period $ 10.76 $ 9.93
============= ==================
Total Return (excludes sales charge) 10.20% (0.70%)(b)
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 18,830 $ 7,149
Ratio of expenses to average net assets 1.50% 1.69% (c)
Ratio of net investment income to average net assets 1.30% 0.81% (c)
Ratio of expenses to average net assets* 3.47% 5.69% (c)
Portfolio Turnvover Rate 43% (d) 36% (d)
</TABLE>
*During the period, certain fees were contractually reduced and/or
reimbursements. If such fee reductions and/or reimbursements ad 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.
(e) Per share net investment income has been calculated using the daily average
share method.
See notes to financial statements
17
<PAGE>
NestEgg Funds
NestEgg 2030 Fund
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
February 29, 2000
Assets:
Investment in the LifePath 2030 Master Portfolio at value $7,371,230
Receivable for capital shares sold 11,116
Receivable for Intrust Bank, N.A. 6,940
----------
Total Assets 7,389,286
Liabilities:
Accrued expenses and other payables:
Other payables and accrued expenses 18,197
----------
Total Liabilities 18,197
----------
Net Assets consist of:
Paid in Capital $7,122,327
Accumulated undistributed (distributions in excess of)
net investment income/(loss) 1,276
Accumulated undistributed net realized gains/(losses) on
investment transactions 6,976
Net unrealized appreciation/(depreciation) from investments 240,511
----------
Net Assets $7,371,090
==========
Outstanding shares of Beneficial Interest: Service Class 668,752
Offering and redemption price per share $ 11.02
==========
- --------------------------------------------------------------------------------
Statement of Operations
- --------------------------------------------------------------------------------
For the year ended February 29, 2000
Investment Income:
Investment Income allocated from corresponding
Master Portfolio
Interest income $ 43,525
Dividend income 39,891
Expenses (Note 3) (20,781)
---------
Net Investment Income allocated from corresponding
Master Portfolio 62,635
Expenses:(Note 3)
Fund accounting fees 9,469
Offering expense 10,739
Shareholder services expense 9,403
12b-1 fees 9,403
Administration expense 7,523
Printing expense 6,984
Audit expense 6,842
Investment advisory fees 5,642
Legal expense 4,782
Other 785
Custodian fees 752
Transfer agent fees 452
---------
Total expenses before waivers/reimbursements 72,776
Less expenses waived/reimbursed (37,427)
---------
Net Expenses 35,349
---------
Net Investment Income 27,286
---------
Realized and Unrealized Gains/(Losses) on Investments
allocated from corresponding Master Portfolio:
Net realized gains/(losses) on investment
transactions 33,841
Net change in unrealized appreciation/(depreciation) of
investments 269,183
---------
Net realized and unrealized gains/(losses) on
investments 303,024
---------
Increase/(Decrease) in Net Assets Resulting from
Operations $ 330,310
=========
See notes to financial statements
18
<PAGE>
NestEgg Funds
NestEgg 2030 Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
------------ ----------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ 27,286 $ 433
Net realized gains/(losses) on investment transactions 33,841 (910)
Net change in unrealized appreciation/(depreciation) from investments 269,183 (28,672)
------------ ----------------
Change in net assets resulting from operations 330,310 (29,149)
------------ ----------------
Distributions to Shareholders:
From net investment income (26,444) -
From net realized gains on investment transactions (25,954) -
------------ ----------------
Change in net assets from shareholder distributions (52,398) -
Capital Share Transactions:
Proceeds from shares issued 6,838,796 1,327,190
Dividends reinvested 30,694 -
Cost of shares redeemed (974,353) (100,000)
------------ ----------------
Change in net assets from capital share transactions 5,895,137 1,227,190
------------ ----------------
Change in net assets 6,173,049 1,198,041
Net Assets:
Beginning of period 1,198,041 -
------------ ----------------
End of period $ 7,371,090 $ 1,198,041
============ ================
Share Transactions:
Issued 635,490 130,886
Reinvested 2,833 -
Redeemed (90,397) (10,060)
------------ ----------------
Change in shares 547,926 120,826
============ ================
</TABLE>
(a) The Fund commenced operations on January 4, 1999
See notes to financial statements
19
<PAGE>
NestEgg Funds
NestEgg 2030 Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
------------ ----------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 9.92 $ 10.00
------------ ----------------
Investment Activities
Net investment income 0.07 - **
Net realized and unrealized gains on investments 1.14 (0.08)
------------ ----------------
Total from Investment Activities 1.21 (0.08)
------------ ----------------
Distributions
Net investment income (0.06) -
Net realized gains on investment transactions (0.05) -
------------ ----------------
Total Distributions (0.11) -
------------ ----------------
Net Asset Value, End of Period $ 11.02 $ 9.92
============ ================
Total Return (excludes sales charge) 12.28% (0.80%)(b)
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 7,371 $ 1,198
Ratio of expenses to average net assets 1.49% 1.50% (c)
Ratio of net investment income to average net assets 0.72% 0.40% (c)
Ratio of expenses to average net assets* 2.48% 17.19% (c)
Portfolio Turnover Rate 26%(d) 19% (d)
</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
20
<PAGE>
NestEgg Funds
NestEgg 2040 Fund
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
February 29, 2000
<S> <C> <C>
Assets:
Investment in the LifePath 2040 Master Portfolio at value (Note 1) $ 8,025,401
Receivable from Intrust Bank, N.A. 3,622
Receivable for capital shares sold 13,646
-----------
Total Assets 8,042,669
Liabilities:
Accrued expenses and other payables:
Other payables and accrued expenses 14,590
------
Total Liabilities 14,590
-----------
Net Assets consist of:
Paid in Capital $ 7,768,893
Accumulated undistributed (distributions in excess of) net
investment income/(loss) (3,780)
Accumulated undistributed net realized gains/(losses) on
investment transactions 19,772
Net unrealized appreciation/(depreciation) from investments 243,194
-----------
Net Assets $ 8,028,079
===========
Outstanding shares of Beneficial Interest: Service Class 703,226
Offering and redemption price per share $ 11.42
===========
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
For the year ended February 29, 2000
<S> <C> <C>
Investment Income:
Investment Income allocated from corresponding Master Portfolio
Interest income $ 9,980
Dividend income 47,062
Expenses (Note 3) (22,004)
---------
Net Investment Income allocated from corresponding Master Portfolio 35,038
Expenses:(Note 3)
Fund accounting fees 8,934
Shareholder services expense 9,935
12b-1 fees 9,935
Offering expense 9,540
Administration expense 7,948
Audit expense 6,488
Investment advisory fees 5,961
Printing expense 5,548
Legal expense 4,248
Other 791
Custodian fees 795
Transfer agent fees 452
-----
Total expenses before waivers/reimbursements 70,575
Less expenses waived/reimbursed (33,530)
---------
Net Expenses 37,045
---------
Net Investment Income (2,007)
---------
Realized and Unrealized Gains/(Losses) on Investments allocated
from corresponding Master Portfolio:
Net realized gains/(losses) on investment transactions 47,235
Net change in unrealized appreciation/(depreciation) of investments 266,785
---------
Net realized and unrealized gains/(losses) on investments 314,020
---------
Increase/(Decrease) in Net Assets Resulting from Operations $ 312,013
=========
</TABLE>
See notes to financial statements
21
<PAGE>
NestEgg Funds
NestEgg 2040 Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
--------------- ----------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income/(loss) $ (2,007) $ (653)
Net realized gains/(losses) on investment transactions 47,235 (523)
Net change in unrealized appreciation/(depreciation) from investments 266,785 (23,591)
--------------- ----------------
Change in net assets resulting from operations 312,013 (24,767)
--------------- ----------------
Distributions to Shareholders:
In excess of 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:
Proceeds from shares issued 8,336,003 900,465
Dividends reinvested 7,430 -
Cost of shares redeemed (1,475,005) -
--------------- ----------------
Change in net assets from capital share transactions 6,868,428 900,465
--------------- ----------------
Change in net assets 7,152,381 875,698
Net Assets:
Beginning of period 875,698 -
--------------- ----------------
End of period $ 8,028,079 $ 875,698
=============== ================
Share Transactions:
Issued 745,065 88,031
Reinvested 662 -
Redeemed (130,532) -
----------------- ----------------
Change in shares 615,195 88,031
================= ================
</TABLE>
(a) The Fund commenced operations on January 4, 1999
See notes to financial statements
22
<PAGE>
NestEgg Funds
NestEgg 2040 Fund
Financial Highlights, Service Shares
<TABLE>
<CAPTION>
For the For the
year ended period ended (a)
February 29, February 28,
2000 1999
------------- ----------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 9.95 $ 10.00
------------- ----------------
Investment Activities
Net investment (loss) - ** (0.01)
Net realized and unrealized gains on investments 1.52 (0.04)
------------- ----------------
Total from Investment Activities 1.52 (0.05)
------------- ----------------
Distributions
In excess of net investment income (0.01) -
Net realized gains on investment transactions (0.04) -
------------- ----------------
Total Distributions (0.05) -
------------- ----------------
Net Asset Value, End of Period $ 11.42 $ 9.95
============= ================
Total Return (excludes sales charge) 15.36% (b) (0.50%)(b)
Ratios/Supplementary Data: Net Assets at end of period (000) $ 8,028 $ 876
Ratio of expenses to average net assets 1.48% (c) 1.50% (c)
Ratio of net investment income to average net assets (0.05%)(c) (0.51%)(c)
Ratio of expenses to average net assets* 2.32% (c) 14.00% (c)
Portfolio Turnover Rate 29% (d) 19% (d) *
</TABLE>
*During the period, certain fees were contractually reduced and/or reimbursed.
If such fee reductions and/or reimbursements had to occurred, the ratio would
have been as indicated.
**The amount is less than $.005
(a) The Fund commenced operations on January 4, 1999
(b) Not annualized.
(c) Annualized.
(d) The portfolio turnover represents that of the Master Portfolio.
See notes to financial statements.
23
<PAGE>
This page intentionally left blank
24
<PAGE>
NestEgg Funds
Notes to Financial Statements
February 29, 2000
================================================================================
1. Organization:
Effective March 1, 2000, The INTRUST Funds Trust changed its name to the
American Independence Funds (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 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 2000 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2000.
NestEgg 2010 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2010.
NestEgg 2020 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2020.
NestEgg 2030 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2030.,
NestEgg 2040 Fund Managed for investors planning to retire (or begin to
withdraw substantial portions of their investment)
approximately in the year 2040.
Each NestEgg Fund seeks to achieve its objective by investing 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 February 29, 2000 was approximately 6.24% for NestEgg 2000;
5.96% for NestEgg 2010; 4.81% for NestEgg 2020; 2.71% for NestEgg 2030; and
1.49% for NestEgg 2040. The financial statements of the Master Portfolios,
including their schedules of investments, are included elsewhere in this report
and should be read in conjunction with the NestEgg Funds' financial statements.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
NestEgg Funds in preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
25
<PAGE>
NestEgg Funds
Notes to Financial Statements
February 29, 2000
================================================================================
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, 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 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.
At February 29, 2000, the NestEgg 2000 fund had net capital loss carryforwards
in the amount of $2,517 which will be available through 2007 to offset future
net capital gains, if any, to the extent provided by the Treasury regulations.
To the extent that these carryforwards are used to offset future capital gains,
it is probable that the gains so offset will not be distributed to shareholders.
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.
26
<PAGE>
NestEgg Funds
Notes to Financial Statements
February 29, 2000
================================================================================
The Funds and BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services
(the "Administrator") are parties to an administration agreement under which the
Administrator provides services for a fee that is computed daily and paid
monthly, at an annual rate of 0.20% of each NestEgg Funds' average daily net
assets.
The Funds and BISYS Fund Services (the "Distributor") are parties to a
distribution agreement under which shares of the Funds are sold on a continuous
basis. Each fund is subject to a distribution plan (the "Plan") pursuant to Rule
12b-1 under the 1940 Act. As provided under the Plan, the Fund will pay the
Distributor up to an annual rate of 0.25% of the average daily net assets of the
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 competitive
expense ratios.
For the year ended February 29, 2000, the Adviser reimbursed the following
amounts:
<TABLE>
<CAPTION>
NestEgg NestEgg NestEgg NestEgg NestEgg
2000 2010 2020 2030 2040
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Reimbursed Expenses $27,577 $39,435 $127,623 $10,664 $5,676
</TABLE>
Additional information regarding fees waived for the period ended February 29,
2000 is as follows:
<TABLE>
<CAPTION>
NestEgg NestEgg NestEgg NestEgg NestEgg
2000 2010 2020 2030 2040
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Shareholder Services Fees Waived $7,366 $13,578 $25,780 $9,403 $9,935
12b-1 Fees Waived 7,366 13,578 25,780 9,403 9,935
Investment Advisory Fees Waived 4,419 8,147 15,468 5,642 5,961
Administration Fees Waived 1,780 3,063 7,131 1,563 1,228
Custodian Fees Waived 589 1,086 2,062 752 795
</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 February 29, 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.
27
<PAGE>
NestEgg Funds
Notes to Financial Statements
February 29, 2000
================================================================================
5. Federal Income Tax Information (unaudited)
During the fiscal year ended February 29, 2000, the NestEgg Funds declared long
term capital gain (20%) distributions in the following amounts:
NestEgg 2000......................................................... $ -
NestEgg 2010......................................................... 13,982
NestEgg 2020.......................................................... 58,692
NestEgg 2030.......................................................... 25,955
NestEgg 2040.......................................................... 26,942
28
<PAGE>
Independent Auditors' Report
To the Shareholders and Board of Trustees
American Independence Funds Trust:
We have audited the accompanying statements of assets and liabilities of NestEgg
2000 Fund, NestEgg 2010 Fund, NestEgg 2020 Fund, NestEgg 2030 Fund and NestEgg
2040 Fund (five of the series comprising the American Independence Funds Trust
(formerly INTRUST Funds Trust)) as of February 29, 2000, and the related
statements of operations for the year then ended and the statements of changes
in net assets and the financial highlights for the year ended February 29, 2000
and for the period from January 4, 2000 (commencement of operations) to February
28, 1999. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of NestEgg 2000 Fund, NestEgg 2010
Fund, NestEgg 2020 Fund, NestEgg 2030 Fund and NestEgg 2040 Fund as of February
29, 2000, the results of their operations, the changes in their net assets and
financial highlights for the periods indicated above in conformity with
generally accepted accounted principles.
/s/ KPMG LLP
San Francisco, California
April 7, 2000
29
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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
Percent of Net Assets 21.04% 44.20% 67.34% 82.62% 98.73%
U.S. COMMON STOCKS
Percent of Net Assets 14.60% 33.69% 52.10% 63.00% 77.80%
ADVERTISING
Percent of Net Assets 0.03% 0.06% 0.12% 0.14% 0.19%
APAC Customer Services Inc. + 100 $ 793 176 $ 1,391 451 $ 3,574 457 $ 3,620 630 $ 4,995
Golden Books Family Entertainment Inc. 1 1 0 -- 2 2 1 1 0 --
Harte-Hanks Inc. 100 2,181 328 7,154 852 18,584 782 17,057 2,520 54,967
Interpublic Group of Companies Inc. 66 2,652 1,298 52,163 3,690 148,292 2,936 117,991 8,200 329,538
Lamar Advertising Co. + 0 -- 0 -- 100 4,356 100 4,356 200 8,712
Omnicom Group Inc. 211 19,874 615 57,925 2,415 227,463 1,945 183,195 5,256 495,049
R.H. Donnelley Corp. + 36 607 252 4,253 550 9,281 489 8,252 1,320 22,275
Snyder Communications Inc. + 0 -- 252 6,111 514 12,464 525 12,731 1,313 31,840
TMP Worldwide Inc. + 0 -- 0 -- 100 13,594 100 13,594 100 13,594
Ventiv Health Inc. + 0 -- 150 1,200 170 1,360 141 1,128 371 2,968
Young & Rubicam Inc. 100 5,050 64 3,232 738 37,269 246 12,423 1,483 74,891
------- ------- --------- --------- ---------
31,158 133,429 476,239 374,348 1,038,829
AEROSPACE / DEFENSE
Percent of Net Assets 0.13% 0.36% 0.56% 0.68% 0.76%
Boeing Co. 692 25,517 6,477 238,839 16,828 620,533 14,272 526,280 30,395 1,120,816
Cordant Technologies Inc. 232 7,511 240 7,770 768 24,864 621 20,105 1,866 60,412
Gencorp Inc. 0 -- 0 -- 425 3,320 0 -- 0 --
General Dynamics Corp. 206 8,909 1,337 57,825 3,314 143,330 2,696 116,602 6,137 265,425
Goodrich (B.F.) Co. 82 1,963 735 17,594 1,884 45,098 1,409 33,728 3,479 83,279
Honeywell International Inc. 679 32,677 4,895 235,572 13,509 650,121 11,265 542,128 25,215 1,213,472
Howmet International Inc. + 0 -- 76 1,392 251 4,596 68 1,245 695 12,727
Litton Industries Inc. + 201 6,017 143 4,281 521 15,597 696 20,836 1,736 51,971
Lockheed Martin Corp. 110 1,918 2,443 42,600 6,530 113,867 5,486 95,662 12,034 209,843
Northrop Grumman Corp. 129 5,861 429 19,493 1,123 51,026 849 38,576 2,008 91,239
Primex Technologies Inc. 94 1,974 98 2,058 188 3,948 152 3,192 222 4,662
Raytheon Co. "B" 174 3,219 2,028 37,518 5,635 104,248 4,693 86,820 10,161 187,978
Sequa Corp. "A" + 110 4,077 0 -- 120 4,448 91 3,373 0 --
Teledyne Technologies Inc. + 0 -- 179 1,555 458 3,979 410 3,562 802 6,967
United Technologies Corp. 448 22,820 2,899 147,668 8,148 415,039 6,790 345,866 15,135 770,939
------- ------- --------- --------- ---------
122,463 814,165 2,204,014 1,837,975 4,079,730
AGRICULTURE
Percent of Net Assets 0.00% 0.00% 0.00% 0.00% 0.00%
Delta & Pine Land Co. 0 -- 240 4,305 100 1,794 100 1,794 188 3,372
------- ------- --------- --------- ---------
AIRLINES
Percent of Net Assets 0.05% 0.09% 0.14% 0.18% 0.22%
Airtran Holdings Inc. + 300 1,228 176 721 450 1,842 278 1,138 719 2,943
AMR Corp. + 134 7,085 1,067 56,418 2,909 153,813 2,422 128,063 5,639 298,162
Continental Airlines Inc. "B" + 300 9,487 328 10,373 1,027 32,479 1,050 33,206 2,761 87,317
Delta Air Lines Inc. 142 6,479 953 43,481 2,526 115,249 2,085 95,128 4,715 215,122
Northwest Airlines Corp. "A" + 100 1,725 516 8,901 1,052 18,147 1,786 30,808 3,910 67,447
Southwest Airlines Co. 163 3,005 3,037 55,995 8,396 154,801 6,950 128,141 16,606 306,173
UAL Corp. + 300 14,625 504 24,570 1,152 56,160 871 42,461 3,191 155,561
US Airways Group Inc. + 13 243 418 7,811 1,148 21,453 955 17,847 2,302 43,019
------- ------- --------- --------- ---------
43,877 208,270 553,944 476,792 1,175,744
APPAREL
Percent of Net Assets 0.03% 0.06% 0.09% 0.11% 0.11%
Burlington Industries Inc. + 729 2,050 419 1,178 1,096 3,082 769 2,163 1,880 5,288
Fruit of the Loom Ltd. "A" + 187 280 570 855 1,347 2,020 936 1,404 2,118 3,177
Hartmarx Corp. + 81 258 202 644 441 1,406 416 1,326 646 2,059
Jones Apparel Group Inc. + 300 6,787 1,000 22,625 1,984 44,888 1,964 44,435 4,263 96,450
Liz Claiborne Inc. 81 3,032 455 17,034 859 32,159 789 29,538 1,858 69,559
Nike Inc. "B" 193 5,488 1,886 53,633 4,884 138,889 4,076 115,911 8,387 238,505
Oshkosh B'gosh Inc. "A" 52 988 86 1,634 400 7,600 152 2,888 392 7,448
Phillips-Van Heusen Corporation 0 -- 0 -- 359 2,491 259 1,797 0 --
Reebok International Ltd. + 0 -- 309 2,472 996 7,968 793 6,344 1,424 11,392
Russell Corp. 0 -- 283 3,909 537 7,417 606 8,370 726 10,028
Stride Rite Corp. 63 346 330 1,815 883 4,856 731 4,020 1,381 7,596
Unifi Inc. + 168 1,606 892 8,530 1,674 16,008 1,512 14,458 3,350 32,034
VF Corp. 120 2,963 756 18,664 2,069 51,078 1,686 41,623 3,741 92,356
Warnaco Group Inc. "A" 100 1,087 892 9,700 1,502 16,334 1,239 13,474 2,926 31,820
------- ------- --------- --------- ---------
24,885 142,693 336,196 287,751 607,712
</TABLE>
30
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MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
AUTO MANUFACTURERS
Percent of Net Assets 0.09% 0.31% 0.46% 0.56% 0.61%
Ford Motor Co. 961 $40,002 8,317 $ 346,195 21,002 $ 874,208 17,768 $ 739,593 38,500 $1,602,563
General Motors Corp. "A" 451 34,304 4,242 322,657 10,967 834,177 9,319 708,826 20,425 1,553,577
Navistar International Corp. + 124 4,061 456 14,934 977 31,997 834 27,314 1,914 62,683
Paccar Inc. 93 4,005 552 23,771 1,213 52,235 998 42,976 2,263 97,450
------- --------- --------- --------- ----------
82,372 707,557 1,792,617 1,518,709 3,316,273
AUTO PARTS & EQUIPMENT
Percent of Net Assets 0.06% 0.09% 0.13% 0.17% 0.19%
Autoliv Inc. 444 12,099 1,043 28,422 1,901 51,802 1,515 41,284 5,697 155,243
Bandag Inc. 0 -- 88 2,068 175 4,112 89 2,091 265 6,227
Bandag Inc. "A" 100 2,137 88 1,881 175 3,741 179 3,826 353 7,545
Breed Technologies Inc. + 0 -- 0 -- 0 -- 0 -- 89 61
Collins & Aikman Corp. 0 -- 0 -- 0 -- 0 -- 453 2,293
Cooper Tire & Rubber Co. 65 703 514 5,558 981 10,607 998 10,791 2,047 22,133
Dana Corp. 209 4,454 1,181 25,170 2,710 57,757 2,343 49,935 4,872 103,835
Delphi Automotive Systems 221 3,688 2,991 49,912 9,445 157,613 7,748 129,295 17,358 289,662
Federal-Mogul Corp. 296 4,033 516 7,030 811 11,050 1,237 16,854 2,920 39,785
Goodyear Tire & Rubber Co. 237 5,377 925 20,986 2,708 61,438 2,397 54,382 4,936 111,986
Lear Corp. + 200 4,225 516 10,900 1,027 21,695 1,061 22,414 2,673 56,467
Meritor Automotive Inc. 170 2,380 1,094 15,316 1,868 26,152 1,914 26,796 3,930 55,020
OEA Inc. + 0 -- 0 -- 270 1,839 299 2,037 0 --
Strattec Security Corp. + 10 332 25 831 63 2,095 44 1,463 0 --
Superior Industries International Inc. 322 7,688 229 5,467 398 9,502 296 7,067 450 10,744
Tenneco Automotive Inc. 0 -- 233 1,718 580 4,278 486 3,584 954 7,036
TRW Inc. 121 5,808 715 34,320 2,075 99,600 1,695 81,360 3,753 180,144
------- -------- -------- -------- ----------
52,924 209,579 523,281 453,179 1,048,181
BANKS
Percent of Net Assets 0.71% 1.81% 2.63% 3.27% 3.79%
Amsouth Bancorp 495 7,177 4,029 58,420 7,113 103,138 6,545 94,902 20,130 291,885
Associated Banccorp. 150 3,797 538 13,618 886 22,427 837 21,187 3,480 88,087
Astoria Financial Corp. 330 7,858 481 11,454 881 20,979 1,244 29,623 2,847 67,794
BancWest Corporation 400 6,075 128 1,944 852 12,940 492 7,472 2,096 31,833
Bank of America Corp. 1,253 57,716 11,136 512,952 29,184 1,344,288 24,467 1,127,011 54,592 2,514,644
Bank of New York Co. Inc. 478 15,923 4,689 156,202 12,470 415,407 10,671 355,478 23,311 776,548
Bank One Corp. 965 24,912 7,413 191,348 19,896 513,566 16,497 425,829 36,387 939,240
BB&T Corp. 200 4,700 1,749 41,101 5,774 135,689 4,667 109,674 10,619 249,546
CCB Financial Corp. 200 7,425 152 5,643 601 22,312 514 19,082 1,578 58,583
Centura Banks Inc. 200 6,750 352 11,880 338 11,407 725 24,469 1,225 41,344
Charter One Financial Inc. 569 8,962 1,357 21,373 2,771 43,643 2,444 38,493 7,764 122,283
Chase Manhattan Corp. 658 52,393 5,193 413,493 14,055 1,119,129 11,830 941,964 26,302 2,094,297
City National Corp. 100 2,756 328 9,040 864 23,814 782 21,554 2,131 58,736
Colonial BancGroup Inc. 100 887 200 1,775 400 3,550 300 2,662 700 6,212
Comerica Inc. 194 7,166 872 32,210 2,667 98,512 2,270 83,848 4,734 174,862
Commerce Bancshares Inc. 263 7,561 606 17,423 1,123 32,286 1,001 28,779 3,633 104,444
Commercial Federal Corp. 0 -- 804 10,402 300 3,881 200 2,587 500 6,469
Compass Bancshares Inc. 500 8,094 988 15,993 1,956 31,663 2,411 39,028 5,715 92,512
Cullen/Frost Bankers Inc. 0 -- 504 10,836 300 6,450 200 4,300 400 8,600
Dime Bancorp Inc. 600 7,312 1,220 14,869 2,291 27,922 2,836 34,564 6,583 80,230
Fifth Third Bancorp 239 12,443 1,762 91,734 5,238 272,703 4,312 224,494 9,648 502,299
First Security Corp. 841 19,501 1,520 35,245 2,798 64,885 2,504 58,061 9,952 230,756
First Tennessee National Corp. 616 10,626 1,378 23,770 2,502 43,159 2,311 39,865 7,242 124,924
First Union Corp. 601 17,729 6,093 179,745 16,753 494,214 13,953 411,612 31,252 921,934
First Virginia Banks Inc. 238 7,497 390 12,285 852 26,838 1,176 37,044 2,941 92,641
Firstar Corp. 934 16,637 7,864 140,077 16,520 294,262 14,441 257,230 34,721 618,468
FirstMerit Corp. 200 2,837 804 11,407 1,953 27,708 1,796 25,481 3,633 51,543
FleetBoston Financial Corp. 554 15,096 5,778 157,450 15,576 424,446 12,886 351,143 28,947 788,806
Fulton Financial Corp. 100 1,650 777 12,820 300 4,931 300 4,950 500 8,219
Golden State Bancorp Inc. + 100 1,287 528 6,798 952 12,257 971 12,502 2,308 29,715
Golden West Financial Corp. 162 4,617 1,400 39,900 2,591 73,843 2,321 66,149 4,883 139,165
Greenpoint Financial Corp. 400 6,375 880 14,025 1,502 23,938 1,429 22,775 4,893 77,982
Hibernia Corp. "A" 700 6,344 1,372 12,434 3,005 27,233 3,828 34,691 8,549 77,475
Huntington Bancshares Inc. 108 2,255 1,424 29,724 3,740 78,073 3,094 64,587 6,677 139,382
IndyMac Mortgage Holdings Inc. 200 2,537 892 11,317 1,778 22,558 1,618 20,528 3,491 44,292
KeyCorp 144 2,439 2,513 42,564 7,294 123,542 6,247 105,809 13,649 231,180
Keystone Financial Inc. 100 1,562 604 9,437 1,315 20,547 1,150 17,969 2,750 42,969
M&T Bank Corp. 0 -- 88 32,472 88 32,472 89 32,841 65 23,985
Marshall & Ilsley Corp. 458 21,039 1,079 49,567 2,031 93,299 1,860 85,444 5,882 270,204
Mellon Financial Corp. 184 5,543 3,226 97,183 8,592 258,834 7,414 223,347 15,872 478,144
Mercantile Bankshares Corp. 254 6,382 723 18,165 1,770 44,471 1,852 46,531 3,939 98,967
Morgan (J.P.) & Company 116 12,876 1,309 145,299 2,912 323,232 2,655 294,705 5,472 607,392
National City Corp. 542 10,433 3,622 69,723 10,348 199,199 8,502 163,664 19,148 368,599
National Commerce Bancorp 300 5,100 1,244 21,148 2,291 38,947 2,243 38,131 4,716 80,172
</TABLE>
31
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
North Fork Bancorp. 600 $ 9,825 1,396 $ 22,859 2,454 $ 40,184 3,293 $ 53,923 7,422 $ 121,535
Northern Trust Corp. 238 13,447 1,350 76,275 3,762 212,553 3,062 173,003 6,970 393,805
Ocwen Financial Corp. + 0 -- 364 2,161 726 4,311 636 3,776 1,172 6,959
Old Kent Financial Corp. 233 6,102 1,164 30,482 2,181 57,115 1,993 52,192 5,834 152,778
Old National Bancorp 569 14,225 72 1,800 565 14,125 195 4,875 1,177 29,433
Pacific Century Financial Corp. 548 8,323 998 15,157 1,702 25,849 1,487 22,584 4,225 64,167
People's Bank 100 1,994 152 3,033 501 9,996 425 8,480 1,325 26,438
Peoples Heritage Financial Group Inc. 100 1,062 1,044 11,092 400 4,250 300 3,187 700 7,437
PNC Bank Corp. 219 8,473 1,985 76,795 5,167 199,898 4,076 157,690 9,060 350,509
Provident Financial Group Inc. 100 2,806 64 1,800 326 9,169 246 6,919 972 27,337
Regions Financial Corp. 70 1,417 1,337 27,074 3,450 69,863 3,105 62,876 6,253 126,623
SouthTrust Corp. 186 4,266 2,152 49,362 3,237 74,249 3,179 72,918 8,214 188,409
Sovereign Bancorp Inc. 600 4,350 1,748 12,673 3,719 26,963 3,493 25,324 7,778 56,390
State Street Corp. 205 14,939 857 62,454 2,727 198,730 2,190 159,596 5,011 365,177
Summit Bancorp 174 4,165 1,280 30,640 2,897 69,347 2,596 62,142 5,252 125,720
SunTrust Banks Inc. 338 17,175 2,418 122,865 5,419 275,353 4,507 229,012 10,062 511,275
Synovus Financial Corp. 97 1,588 1,550 25,381 4,666 76,406 3,542 58,000 8,873 145,295
TCF Financial Corp. 400 7,925 1,056 20,922 2,116 41,923 2,511 49,749 5,058 100,212
Trustmark Corp. 100 1,694 616 10,433 1,865 31,588 1,696 28,726 3,745 63,431
U.S. Bancorp 371 6,794 4,108 75,228 12,229 223,944 10,090 184,773 23,848 436,716
Union Planters Corp. 173 4,736 742 20,312 2,258 61,813 1,831 50,124 6,957 190,448
UnionBanCal Corporation 100 3,212 200 6,425 800 25,700 604 19,403 1,190 38,229
US Trust Corp. 0 -- 0 -- 0 -- 0 -- 100 13,850
Valley National Bancorp 110 2,551 634 14,701 1,362 31,581 1,300 30,144 3,069 71,162
Wachovia Corp. 172 9,836 1,444 82,579 3,415 195,295 3,108 177,739 6,273 358,737
Washington Federal Inc. 143 2,190 826 12,648 1,672 25,603 1,368 20,948 3,148 48,204
Washington Mutual Inc. 294 6,505 3,853 85,248 9,678 214,126 8,502 188,107 17,994 398,117
Wells Fargo & Company 1,397 46,188 11,318 374,201 29,425 972,864 24,778 819,223 55,601 1,838,308
Westamerica Bancorp 100 2,269 416 9,438 952 21,598 871 19,761 2,208 50,094
Wilmington Trust Corp. 192 9,012 249 11,687 719 33,748 696 32,668 1,833 86,036
Zions Bancorp 300 15,919 780 41,389 1,602 85,006 1,239 65,744 3,921 208,058
-------- --------- ---------- ---------- ----------
663,257 4,153,379 10,351,744 8,895,665 20,458,251
BEVERAGES
Percent of Net Assets 0.14% 0.45% 0.80% 0.95% 1.25%
Anheuser-Busch Companies Inc. 222 14,236 2,140 137,228 6,638 425,662 5,271 338,003 14,272 915,192
Brown-Forman Corp. "B" 64 3,048 418 19,907 1,110 52,864 820 39,053 1,930 91,916
Coca-Cola Co. 1,387 67,183 11,944 578,537 36,542 1,770,003 29,962 1,451,284 78,955 3,824,383
Coca-Cola Enterprises 516 12,061 2,215 51,776 7,109 166,173 5,849 136,720 13,090 305,979
Coors (Adolph) Company "B" 59 2,589 308 13,514 523 22,947 641 28,124 779 34,179
Pepsi Bottling Group Inc. 100 1,675 200 3,350 400 6,700 300 5,025 700 11,725
PepsiCo Inc. 767 24,736 6,882 221,944 21,239 684,958 16,985 547,766 45,894 1,480,082
Whitman Corp. 364 4,550 1,024 12,800 2,587 32,338 2,384 29,800 5,657 70,712
-------- --------- ---------- ---------- ----------
130,078 1,039,056 3,161,645 2,575,775 6,734,168
BIOTECHNOLOGY
Percent of Net Assets 0.23% 0.41% 0.61% 0.75% 1.02%
Affymetrix Inc. + 0 -- 0 -- 0 -- 0 -- 100 28,962
Amgen Inc. + 238 16,229 4,706 320,890 15,050 1,026,222 12,254 835,570 32,402 2,209,411
Biogen Inc. + 636 68,648 1,324 142,909 2,222 239,837 2,260 243,939 7,272 784,921
Chiron Corp. + 296 14,800 1,037 51,850 2,125 106,250 1,943 97,150 4,574 228,700
Genentech Inc. + 0 -- 0 -- 200 38,575 0 -- 600 115,725
Genzyme General Division + 126 7,237 798 45,835 631 36,243 664 38,138 1,401 80,470
Genzyme Tissue Repair + 44 371 10 84 162 1,367 146 1,232 148 1,249
IDEC Pharmaceuticals Corp. + 0 -- 0 -- 0 -- 0 -- 200 28,175
Immunex Corp. + 400 78,950 656 129,519 1,552 306,423 1,484 292,997 3,632 717,093
Millennium Pharmaceuticals Inc. + 0 -- 0 -- 200 52,025 0 -- 600 156,075
Monsanto Co 510 19,794 3,851 149,467 10,769 417,972 8,974 348,303 20,030 777,414
PE Corp. (Celera Genomics Group) + 18 4,392 386 94,184 774 188,856 748 182,512 1,646 401,624
Xoma Ltd. + 188 1,739 0 -- 269 2,488 272 2,516 0 --
-------- --------- ---------- ---------- ----------
212,160 934,738 2,416,258 2,042,357 5,529,819
BUILDING MATERIALS
Percent of Net Assets 0.06% 0.07% 0.10% 0.13% 0.17%
American Standard Companies + 100 3,487 616 21,483 1,427 49,767 1,061 37,002 2,573 89,733
Armstrong World Industries Inc. 92 1,748 284 5,396 613 11,647 674 12,806 928 17,632
Dal-Tile International Inc. + 0 -- 0 -- 0 -- 0 -- 177 1,239
Hussmann International Inc. 32 462 385 5,558 898 12,965 712 10,280 1,453 20,978
Johns Manville Corp. 100 812 340 2,762 789 6,411 704 5,720 1,878 15,259
Lafarge Corp. 300 5,906 240 4,725 589 11,596 514 10,119 1,590 31,303
Martin Marietta Materials Inc. 0 -- 88 3,124 275 9,762 179 6,354 400 14,200
Masco Corp. 22 393 2,343 41,881 7,458 133,312 6,004 107,321 13,657 244,119
Modine Manufacturing Co. 309 7,049 220 5,019 408 9,307 299 6,821 442 10,083
Owens Corning 18 261 91 1,319 602 8,729 441 6,394 1,475 21,388
Rayonier Inc. 156 6,201 196 7,791 556 22,101 537 21,346 1,418 56,365
Southdown Inc. 275 13,647 240 11,910 560 27,790 762 37,814 2,131 105,751
</TABLE>
32
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ---------------- ------------------ ----------------- ----------------
Shares Value Shares Value Shares Value Shares Value Shares Value
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> C>
COMMON STOCKS (Continued)
USG Corp. 100 $ 3,250 240 $ 7,800 777 $ 25,252 604 $ 19,630 1,666 54,145
Vulcan Materials Co. 190 7,600 846 33,840 1,658 66,320 1,288 51,520 4,190 167,600
York International Corp. 202 3,661 258 4,676 904 16,385 884 16,022 2,383 43,192
------- --------- ---------- ---------- ----------
54,477 157,284 411,344 349,149 $ 892,987
CHEMICALS
Percent of Net Assets 0.21% 0.43% 0.62% 0.77% 0.85%
Air Products & Chemicals Inc. 80 2,060 1,501 38,651 3,680 94,760 3,172 81,679 6,701 172,551
Airgas Inc. + 400 2,775 704 4,884 1,502 10,420 1,350 9,366 3,126 21,687
Albemarle Corp. 113 1,702 29 437 336 5,061 186 2,802 771 11,613
Arch Chemicals Inc. 135 2,573 334 6,367 604 11,514 606 11,552 1,319 25,143
Ashland Inc. 99 3,081 481 14,971 1,065 33,148 965 30,036 2,044 63,620
Cabot Corp. 210 4,646 827 18,297 1,916 42,391 1,814 40,135 4,001 88,522
ChemFirst Inc. 35 682 74 1,443 275 5,362 200 3,900 307 5,986
CK Witco Corp. 449 4,771 1,910 20,294 3,451 36,667 3,296 35,020 7,295 77,509
Cytec Industries Inc. + 100 2,425 240 5,820 777 18,842 604 14,647 1,666 40,400
Dow Chemical Co. 191 20,723 1,594 172,949 3,711 402,643 3,193 346,440 6,942 753,207
Du Pont (E.I.) de Nemours 880 44,440 6,618 334,209 17,871 902,485 14,903 752,602 33,345 1,683,922
Eastman Chemical Co. 114 4,097 511 18,364 1,165 41,867 1,045 37,555 2,030 72,953
Engelhard Corp. 0 -- 656 8,938 2,366 32,237 2,017 27,482 4,151 56,557
Ethyl Corp. 1,031 3,286 889 2,834 1,878 5,986 1,268 4,042 2,435 7,762
Ferro Corp. 457 8,626 330 6,229 573 10,815 443 8,362 1,179 22,254
Fuller (H. B.) Co. 0 -- 0 -- 197 12,091 0 -- 0 --
Geon Co. 0 -- 0 -- 0 -- 0 -- 265 5,532
Georgia Gulf Corp. 237 5,392 317 7,212 653 14,856 415 9,441 665 15,129
Grace (W.R.) & Company + 42 423 241 2,425 996 10,022 746 7,507 1,938 19,501
Great Lakes Chemical Corp. 67 1,947 418 12,148 770 22,378 730 21,216 1,647 47,866
Hanna (M.A.) Co. 280 3,202 572 6,542 1,211 13,851 1,261 14,423 2,551 29,177
Hercules Inc. 82 1,353 538 8,877 1,571 25,921 1,231 20,312 2,383 39,320
IMC Global Inc. 436 5,886 1,243 16,780 2,694 36,369 2,294 30,969 5,432 73,332
International Specialty Products In+. 0 -- 276 1,829 363 2,405 268 1,775 818 5,419
Lubrizol Corp. 329 8,163 857 21,264 1,617 40,122 1,566 38,856 3,403 84,437
Lyondell Chemical Co. 76 651 698 5,977 1,267 10,849 1,075 9,205 2,760 23,632
Millennium Chemicals Inc. 310 4,340 1,099 15,386 2,039 28,546 2,016 28,224 4,027 56,378
Mississippi Chemical Corp. 11 82 24 180 92 690 66 495 103 773
Octel Corp. + 19 178 118 1,106 263 2,466 233 2,184 522 4,894
Olin Corp. 270 4,185 669 10,369 1,308 20,274 1,312 20,336 2,738 42,439
Omnova Solutions Inc. 0 -- 0 -- 425 2,789 0 -- 0 --
Praxair Inc. 198 6,682 921 31,084 2,590 87,412 2,332 78,705 4,870 164,362
Rohm & Haas Co. "A" 190 7,671 1,553 62,702 3,715 149,993 3,308 133,561 6,596 266,314
RPM Inc. 272 2,720 1,183 11,830 2,552 25,520 2,217 22,170 5,421 54,210
Schulman (A.) Inc. 403 5,340 369 4,889 601 7,963 550 7,287 1,147 15,198
Sherwin-Williams Co. 81 1,549 1,054 20,158 2,992 57,222 2,443 46,722 5,005 95,721
Sigma-Aldrich Corporation 118 2,802 558 13,252 1,784 42,370 1,289 30,614 2,719 64,576
Solutia Inc. 543 7,500 1,172 16,188 2,101 29,020 2,675 36,948 6,440 88,953
Terra Industries Inc. 500 1,156 352 814 714 1,651 546 1,263 1,072 2,479
Union Carbide Corp. 125 6,711 726 38,977 2,169 116,448 1,819 97,658 4,114 220,870
Valhi Inc. 100 1,112 100 1,112 100 1,112 0 -- 165 1,836
Valspar Corp. 100 3,281 328 10,762 864 28,350 782 25,659 2,031 66,642
Wellman Inc. 363 6,761 246 4,582 434 8,083 326 6,072 846 15,757
------- -------- ---------- ---------- ---------
194,974 981,132 2,452,971 2,097,222 4,608,433
COAL
Percent of Net Assets 0.00% 0.00% 0.00% 0.00% 0.00%
CONSOL Energy Inc. 100 1,162 100 1,162 200 2,325 100 1,162 200 2,325
------- -------- ---------- ---------- ----------
COMMERCIAL SERVICES
Percent of Net Assets 0.21% 0.28% 0.43% 0.53% 0.60%
ACNielsen Corp. + 73 1,236 299 5,064 705 11,941 531 8,994 1,440 24,390
Apollo Group Inc. + 0 -- 472 10,768 864 19,710 927 21,147 1,931 44,051
Block (H & R) Inc. 105 4,607 588 25,799 1,819 79,809 1,403 61,557 2,840 124,605
Caremark Rx Inc. + 710 3,195 1,662 7,479 3,636 16,362 3,628 16,326 7,544 33,948
Cendant Corp. + 542 9,654 5,352 95,333 14,052 250,301 12,242 218,061 25,588 455,786
Circle.com + 0 -- 63 595 54 510 131 1,236 303 2,860
Comdisco Inc. 448 17,220 1,162 44,664 3,000 115,313 2,753 105,818 6,529 250,958
Concord EFS Inc. + 375 7,336 1,516 29,657 3,472 67,921 3,047 59,607 6,824 133,495
Convergys Corp. + 100 3,850 200 7,700 700 26,950 400 15,400 1,200 46,200
Crescent Operating Inc. + 0 -- 70 157 0 -- 0 -- 277 623
Deluxe Corp. 64 1,500 514 12,047 1,071 25,102 1,047 24,539 2,044 47,906
DeVry Inc. + 100 1,806 100 1,806 300 5,419 200 3,612 400 7,225
Donnelley (R.R.) & Sons Co. 139 2,658 755 14,439 2,283 43,662 1,873 35,821 4,360 83,385
Dun & Bradstreet Corp. 75 1,964 520 13,618 2,396 62,745 1,963 51,406 4,641 121,536
Ecolab Inc. 84 2,373 556 15,707 2,058 58,138 1,563 44,155 3,858 108,989
Equifax Inc. 61 1,292 500 10,594 2,149 45,532 1,476 31,273 4,076 86,360
</TABLE>
33
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
---------------- ----------------- ----------------- ----------------- -----------------
Shares Value Shares Value Shares Value Shares Value Shares Value
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<S> <C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
First Health Group Corp. + 468 $ 11,290 962 $ 23,208 1,806 $ 43,570 1,700 $ 41,012 3,694 $ 89,118
Gartner Group Inc. "A" + 0 -- 616 8,816 1,140 16,316 1,061 15,186 2,485 35,567
Gartner Group Inc. "B" + 13 154 226 2,670 771 9,107 642 7,584 1,471 17,376
Hertz Corp. 100 3,581 264 9,454 426 15,256 536 19,195 960 34,380
Kelly Services Inc. "A" 106 2,551 194 4,668 341 8,205 374 8,999 882 21,223
Mail-Well Inc. + 0 -- 100 869 100 869 0 -- 188 1,633
Manpower Inc. 200 6,537 1,056 34,518 2,216 72,435 2,064 67,467 4,163 136,078
McKesson HBOC Inc. 345 6,684 1,952 37,820 4,677 90,617 3,633 70,389 8,899 172,418
Midas Inc. 10 240 128 3,072 299 7,176 237 5,688 450 10,800
Modis Professional Services Inc. + 400 6,300 1,220 19,215 2,654 41,800 2,300 36,225 5,246 82,624
Navigant Consulting Co. + 0 -- 0 -- 100 962 100 962 300 2,887
NOVA Corporation (Georgia) + 100 2,306 100 2,306 300 6,919 300 6,919 500 11,531
Ogden Corp. 101 1,149 638 7,257 1,213 13,798 966 10,988 2,324 26,435
Olsten Corp. 291 3,474 462 5,515 1,079 12,881 982 11,723 2,157 25,749
Paychex Inc. 728 36,446 922 46,158 3,369 168,661 2,750 137,672 7,247 362,803
Phycor Inc. + 300 347 704 814 1,546 1,788 1,573 1,819 3,436 3,973
Protection One Inc. + 0 -- 100 162 200 325 0 -- 200 325
Quintiles Transnational Corp. + 190 5,641 704 20,900 1,885 55,961 1,419 42,127 3,278 97,316
Renaissance Worldwide Inc. + 200 1,050 440 2,310 889 4,667 903 4,741 1,702 8,935
Robert Half International Inc. + 200 8,450 1,024 43,264 1,953 82,514 1,841 77,782 3,721 157,212
Rollins Inc. 388 6,281 185 2,995 565 9,146 357 5,779 696 11,267
Service Corp. International 19 70 1,518 5,598 4,407 16,251 3,651 13,463 7,399 27,284
Servicemaster Co. 700 7,700 2,188 24,068 5,145 56,595 4,528 49,808 10,490 115,390
Sodexho Marriott Services Inc. 44 489 21 234 315 3,504 241 2,681 1,081 12,026
Sotheby's Holdings Inc. 611 12,029 0 -- 743 14,628 556 10,946 0 --
Stewart Enterprises Inc. "A" 300 1,275 692 2,941 1,315 5,589 950 4,037 4,593 19,520
Sylvan Learning Systems Inc. + 0 -- 0 -- 200 2,975 100 1,487 200 2,975
Teletech Holdings Inc. + 0 -- 88 3,333 0 -- 0 -- 265 10,037
United Rentals Inc. + 0 -- 0 -- 200 3,125 200 3,125 400 6,250
US Oncology Inc. + 0 -- 176 726 0 -- 179 738 353 1,456
USWeb Corp. + 100 3,887 100 3,887 400 15,475 200 7,775 400 15,475
Valassis Communications Inc. + 150 4,153 246 6,811 839 23,230 654 18,108 1,522 42,140
Viad Corp. 436 10,219 1,214 28,453 1,801 42,211 2,357 55,242 4,812 112,781
Workflow Management Inc. + 0 -- 107 2,434 223 5,073 192 4,368 429 9,760
------- ------- --------- --------- ---------
200,994 649,903 1,681,044 1,442,987 3,257,061
COMPUTERS
Percent of Net Assets 1.32% 3.67% 5.94% 7.13% 9.13%
Adaptec Inc. + 90 3,690 1,464 60,024 2,920 119,720 2,596 106,436 6,074 249,034
Affiliated Computer Services Inc. + 0 -- 0 -- 200 6,300 100 3,150 400 12,600
Anixter International Inc. + 500 9,344 440 8,223 438 8,185 625 11,680 1,160 21,677
Apple Computer Inc. + 125 14,328 995 114,052 2,712 310,863 2,268 259,970 5,009 574,157
Aztec Technology Partners Inc. + 0 -- 161 1,170 436 3,161 388 2,810 744 5,397
Bisys Group Inc. + 0 -- 0 -- 100 5,156 100 5,156 100 5,156
Brocade Communications System Inc. + 0 -- 0 -- 0 -- 0 -- 200 57,825
Cabletron Systems + 77 3,773 964 47,236 3,039 148,911 2,442 119,658 5,471 268,079
Cambridge Technology Partners Inc. + 100 1,500 352 5,280 514 7,710 425 6,375 1,125 16,875
Ceridian Corp. + 92 1,823 514 10,184 2,192 43,429 1,738 34,434 4,076 80,756
Checkfree Holdings Corp. + 0 -- 0 -- 100 8,794 100 8,794 200 17,587
Ciber Inc. + 0 -- 340 7,905 789 18,344 514 11,950 1,390 32,317
Cisco Systems Inc. + 1,542 203,833 17,582 2,324,121 51,138 6,759,804 42,330 5,595,497 110,352 14,587,155
Compaq Computer Corp. 1,347 33,507 10,727 266,834 28,937 719,808 24,259 603,443 54,156 1,347,131
Computer Sciences Corp. + 132 10,403 937 73,847 2,852 224,773 2,271 178,983 5,222 411,559
Dell Computer Corp. + 1,492 60,892 12,124 494,811 37,506 1,530,714 30,738 1,254,495 81,152 3,312,016
Diebold Inc. 266 6,517 911 22,319 1,335 32,707 1,878 46,011 3,882 95,109
DST Systems Inc. + 200 11,225 152 8,531 689 38,670 514 28,848 1,501 84,244
Electronic Data Systems Corp. 458 29,655 2,875 186,156 8,076 522,921 6,796 440,041 14,985 970,279
Electronics For Imaging Inc. + 300 17,812 240 14,250 877 52,072 793 47,084 1,666 98,919
EMC Corporation + 337 40,103 4,932 586,908 15,110 1,798,090 12,386 1,473,934 32,561 3,874,759
Exabyte Corp. + 0 -- 0 -- 398 3,184 0 -- 0 --
Extreme Networks Inc. + 0 -- 0 -- 100 11,125 0 -- 100 11,125
Foundry Networks Inc. + 0 -- 0 -- 0 -- 0 -- 300 41,906
Gateway Inc. + 280 19,250 980 67,375 4,530 311,437 3,660 251,625 9,630 662,062
Hewlett-Packard Co. 814 109,483 6,663 896,173 17,455 2,347,697 14,651 1,970,559 32,639 4,389,945
Intergraph Corp. + 54 324 322 1,932 855 5,130 623 3,738 976 5,856
International Business Machines
Corp. 1,150 117,300 9,024 920,448 26,730 2,726,460 22,116 2,255,832 57,826 5,898,252
Iomega Corp. + 700 2,625 2,969 11,134 6,467 24,251 5,567 20,876 12,443 46,661
Juniper Networks Inc. + 0 -- 700 192,019 1,700 466,331 1,100 301,744 3,900 1,069,819
Komag Inc. + 400 888 528 1,172 1,064 2,361 814 1,806 1,072 2,379
Lexmark International Group
Inc. "A" + 490 58,432 1,264 150,732 2,130 254,002 1,972 235,161 5,876 700,713
Mentor Graphics Corp. + 600 10,275 616 10,549 847 14,505 993 17,005 1,513 25,910
Micron Electronics Inc. + 0 -- 176 1,892 351 3,773 268 2,881 542 5,826
</TABLE>
34
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
----------------- ----------------- ----------------- ------------------ ------------------
Shares Value Shares Value Shares Value Shares Value Shares Value
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NCR Corp. + 161 $ 6,108 1,098 $ 41,655 1,884 $ 71,474 1,903 $ 72,195 5,511 $ 209,074
Network Appliance Inc. + 0 -- 1,218 229,897 2,100 396,375 1,700 320,875 4,600 868,250
Perot Systems Corp. "A" + 0 -- 0 -- 200 5,087 200 5,087 400 10,175
Quantum DLT & Storage Group + 500 5,187 1,560 16,185 3,513 36,447 3,277 33,999 7,301 75,748
Quantum Hard Disk Drive Group + 300 2,362 830 6,536 1,756 13,828 1,588 12,505 3,450 27,169
Read-Rite Corp. + 400 1,513 440 1,664 626 2,367 814 3,078 1,702 6,436
Redback Networks Inc. + 0 -- 0 -- 0 -- 0 -- 100 29,850
RSA Security Inc. + 200 13,387 528 35,343 1,064 71,221 893 59,775 2,055 137,557
Safeguard Scientifics Inc. + 0 -- 0 -- 0 -- 0 -- 300 52,481
Sapient Corp. + 0 -- 0 -- 0 -- 0 -- 200 14,300
Seagate Technology Inc. + 117 5,835 1,464 73,017 3,913 195,161 3,353 167,231 7,036 350,921
Silicon Graphics Inc. + 4 39 1,064 10,441 3,159 30,998 2,798 27,455 5,501 53,979
Storage Technology Corp. + 518 6,604 1,018 12,979 1,813 23,116 1,616 20,604 5,909 75,340
Sun Microsystems Inc. + 1,848 176,022 8,480 807,720 24,246 2,309,431 20,108 1,915,287 50,058 4,768,024
SunGard Data Systems Inc. + 400 12,000 956 28,680 1,765 52,950 2,121 63,630 5,069 152,070
Synopsys Inc. + 200 7,988 692 27,637 1,490 59,507 1,418 56,631 3,203 127,920
3Com Corp. + 280 27,440 2,225 218,050 6,007 588,686 5,138 503,524 10,951 1,073,196
Unisys Corp. + 40 1,197 1,712 51,253 5,181 155,106 4,260 127,534 9,591 287,131
VeriSign Inc. + 0 -- 400 101,200 900 227,812 500 126,500 2,200 556,875
Veritas Software Corp. + 1,050 207,769 1,284 254,071 3,056 604,706 2,931 579,972 7,010 1,387,104
Western Digital Corp. + 700 3,150 1,232 5,544 2,467 11,101 2,243 10,093 4,993 22,468
Whittman-Hart Inc. + 0 -- 0 -- 200 9,062 100 4,537 300 13,594
---------- ---------- ---------- ---------- ----------
1,243,583 8,407,149 3,394,823 19,410,488 49,282,749
COSMETICS / PERSONAL CARE
Percent of Net Assets 0.15% 0.47% 0.84% 0.99% 1.32%
Alberto-Culver Co. "B" 92 1,966 455 9,726 685 14,642 752 16,074 1,499 32,041
Avon Products 80 2,165 1,299 35,154 3,731 100,970 2,960 80,105 7,209 195,094
Colgate-Palmolive Co. 558 29,121 2,806 146,438 8,638 450,796 6,622 345,586 18,056 942,298
Estee Lauder Companies Inc. "A" 300 13,012 152 6,593 502 21,774 1,050 45,544 2,274 98,635
Gillette Co. 527 18,577 5,172 182,313 15,408 543,132 12,523 441,436 33,647 1,186,057
International Flavors &
Fragrances Inc. 156 4,680 503 15,090 1,634 49,020 1,278 38,340 2,944 88,320
Kimberly-Clark Corp. 255 13,180 2,624 135,628 7,942 410,502 6,491 335,504 17,137 885,769
Procter & Gamble Co. 668 58,784 6,284 552,992 19,473 1,713,624 15,962 1,404,656 42,046 3,700,048
---------- ---------- --------- ---------- ----------
141,485 1,083,934 3,304,460 2,707,245 7,128,262
DISTRIBUTION / WHOLESALE
Percent of Net Assets 0.04 0.10% 0.14% 0.17% 0.18%
Costco Wholesale Corp. + 450 22,331 3,242 160,884 7,566 375,463 6,198 307,576 13,992 694,353
Genuine Parts Co. 79 1,782 1,169 26,376 2,819 63,604 2,478 55,910 5,091 114,866
Grainger (W.W.) Inc. 72 3,082 554 23,718 1,742 74,579 1,335 57,155 2,636 112,854
Handleman Co. + 59 612 116 1,203 409 4,243 274 2,843 560 5,810
Ingram Micro Inc. "A" + 100 1,081 176 1,903 351 3,795 457 4,941 918 9,926
Tech Data Corp. + 300 6,506 616 13,359 1,052 22,815 1,171 25,396 2,708 58,730
---------- ---------- --------- ---------- ----------
35,394 227,443 544,499 453,821 996,539
DIVERSIFIED FINANCIAL SERVICES
Percent of Net Assets 0.53% 1.71% 2.63% 3.17% 3.70%
Advanta Corp. "B" 163 2,088 143 1,832 238 3,049 194 2,486 336 4,305
American Express Co. 331 44,416 2,824 378,946 7,607 1,020,764 6,348 851,822 14,956 2,006,908
Ameritrade Holding Corp. "A" + 100 1,869 200 3,737 200 3,737 200 3,737 500 9,344
Associates First Capital Corp. 472 9,381 4,256 84,588 12,307 244,602 10,074 200,221 22,701 451,182
Bear Stearns Companies Inc. 198 7,771 787 30,890 2,140 83,995 1,798 70,572 3,697 145,107
Capital One Financial Corp. 0 -- 975 35,892 3,300 121,481 2,625 96,633 6,010 221,243
CIT Group Inc. (The) 0 -- 0 -- 0 -- 100 1,400 300 4,200
Citigroup Inc. 2,697 139,401 21,710 1,122,136 57,667 2,980,663 48,491 2,506,379 108,157 5,590,365
Contifinancial Corp. + 0 -- 88 6 275 19 278 19 630 44
Countrywide Credit Industries
Inc. 94 2,344 695 17,332 1,927 48,055 1,531 38,179 3,314 82,643
Credit Acceptance Corp. + 200 1,100 176 968 0 -- 278 1,529 542 2,981
DLJdirect Inc. + 0 -- 0 -- 100 1,094 0 -- 100 1,094
Donaldson, Lufkin & Jenrette
Inc. 200 8,687 152 6,602 414 17,983 425 18,461 1,325 57,555
E*trade Group Inc. + 100 2,462 200 4,925 800 19,700 400 9,850 1,200 29,550
Edwards (A.G.) Inc. 382 12,105 1,170 37,074 2,313 73,293 2,201 69,744 4,649 147,315
Federal National Mortgage
Association 711 37,683 6,604 350,012 17,461 925,433 14,643 776,079 32,661 1,731,033
Federated Investors Inc. "B" 100 2,331 200 4,662 400 9,325 300 6,994 600 13,987
Finova Group Inc. 200 5,725 416 11,908 964 27,594 1,239 35,466 2,926 83,757
FIRSTPLUS Financial Group Inc. + 200 66 440 145 788 260 714 236 1,590 525
Franklin Resources Inc. 318 8,646 1,310 35,616 4,213 114,541 3,399 92,410 7,610 206,897
Freddie Mac 393 16,408 4,254 177,604 11,817 493,360 9,863 411,780 22,236 928,353
Goldman Sachs Group Inc. 200 18,500 2,400 222,000 5,600 518,000 4,300 397,750 12,500 1,156,250
Household International Inc. 339 10,827 2,911 92,970 8,013 255,915 6,912 220,752 14,721 470,152
John Nuveen Co. "A" 0 -- 88 3,036 0 -- 0 -- 0 --
Knight/Trimark Group Inc. + 100 4,687 200 9,375 400 18,750 300 14,062 700 32,812
Legg Mason Inc. 300 11,775 504 19,782 1,327 52,085 1,150 45,137 2,661 104,444
Lehman Brothers Holdings Inc. 180 13,050 750 54,375 2,015 146,088 1,655 119,987 3,655 264,987
MBNA Corp. 296 6,734 4,220 96,005 12,262 278,961 9,882 224,816 24,936 567,294
Merrill Lynch & Co. 230 23,575 2,334 239,235 6,268 642,470 5,259 539,047 11,742 1,203,555
</TABLE>
35
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
Metris Companies Inc. 320 $ 8,280 224 $ 5,796 454 $ 11,747 290 $ 7,504 278 $ 7,193
Morgan Stanley Dean Witter & Co. 888 62,548 7,722 543,918 19,022 1,339,862 16,196 1,140,806 35,644 2,510,674
Paine Webber Group Inc. 190 7,267 1,132 43,299 2,332 89,199 1,935 74,014 5,510 210,757
Price (T. Rowe) Associates 190 6,258 1,034 34,057 1,911 62,944 2,071 68,214 5,034 165,807
Providian Financial Corp. 177 11,472 567 36,749 1,778 115,237 1,389 90,025 4,040 261,843
Schwab (Charles) Corp. 94 3,930 3,870 161,814 11,810 493,806 9,134 381,915 25,536 1,067,724
SLM Holding Corp. 135 4,227 585 18,318 2,320 72,645 1,920 60,120 4,530 141,846
United Asset Management Corp. 300 4,481 980 14,639 1,865 27,858 1,596 23,840 3,445 51,460
Waddell & Reed Financial Inc. "A" 0 -- 68 1,968 138 3,993 122 3,530 258 7,466
Waddell & Reed Financial Inc. "B" 39 1,058 273 7,405 598 16,221 562 15,244 1,092 29,620
-------- ---------- ----------- ---------- -----------
501,152 3,909,616 10,334,729 8,620,760 19,972,272
ELECTRIC
Percent of Net Assets 0.17% 0.54% 0.98% 1.03% 1.09%
AES Corp. + 0 -- 1,225 102,670 3,541 296,780 2,880 241,380 6,445 540,172
Allegheny Energy Inc. 0 -- 0 -- 1,686 43,731 0 -- 0 --
Alliant Energy Corp. 141 3,966 1,021 28,716 1,829 51,441 1,735 48,797 377 10,603
Ameren Corp. 188 5,640 752 22,560 2,207 66,207 1,855 55,650 4,270 128,100
American Electric Power 136 3,825 1,265 35,578 3,236 91,013 2,775 78,047 5,765 162,141
Carolina Power & Light 143 4,254 1,013 30,137 2,569 76,428 2,324 69,139 4,624 137,564
Central & South West Corp. 70 1,177 1,308 21,991 3,525 59,264 2,887 48,538 5,933 99,749
Cinergy Corp. 157 3,356 1,057 22,593 2,626 56,131 2,186 46,726 4,694 100,334
CMS Energy Corp. 0 -- 10 167 1,722 28,844 1,200 20,100 2,890 48,407
Conectiv Inc. 1,067 15,205 752 10,716 1,437 20,477 973 13,865 1,007 14,350
Consolidated Edison Inc. 155 4,272 1,539 42,419 3,833 105,647 3,377 93,079 6,813 187,783
Constellation Energy Group Inc. 67 1,993 819 24,365 2,523 75,059 2,239 66,610 4,457 132,596
Dominion Resources Inc. 345 12,657 1,981 72,678 5,253 192,719 4,445 163,076 8,953 328,463
DTE Energy Co. 208 6,279 870 26,263 2,408 72,692 2,092 63,152 4,386 132,402
Duke Energy Corp. 241 11,688 2,240 108,640 6,146 298,081 5,209 252,637 11,516 558,526
Edison International 37 974 2,183 57,440 5,912 155,560 5,170 136,036 10,497 276,202
Energy East Corp. 0 -- 0 -- 2,006 42,126 0 -- 0 --
Entergy Corp. 150 3,037 1,531 31,003 3,975 80,494 3,439 69,640 7,284 147,501
FirstEnergy Corp. 60 1,121 1,415 26,443 3,850 71,947 3,325 62,136 6,885 128,663
Florida Progress Corp. 0 -- 410 17,476 1,527 65,088 1,200 51,150 2,800 119,350
FPL Group Inc. 211 8,150 1,353 52,260 2,979 115,064 2,460 95,018 5,424 209,502
GPU Inc. 122 3,035 718 17,860 2,112 52,536 1,741 43,307 3,822 95,072
Hawaiian Electric Industries Inc. 192 5,532 187 5,388 609 17,547 606 17,460 1,472 42,412
IDACORP Inc. 0 -- 0 -- 513 16,352 0 -- 0 --
IPALCO Enterprises Inc. 0 -- 0 -- 1,646 27,879 0 -- 0 --
Kansas City Power & Light Co. 0 -- 0 -- 837 19,251 0 -- 0 --
LG&E Energy Corp. 0 -- 0 -- 870 19,303 0 -- 0 --
MidAmerican Energy Holdings Co. + 0 -- 0 -- 789 27,319 0 -- 0 --
Minnesota Power Inc. 698 10,688 476 7,289 842 12,893 624 9,555 692 10,596
Montana Power Co. 0 -- 0 -- 1,544 60,795 0 -- 0 --
New Century Energies Inc. 0 -- 430 11,637 1,801 48,740 1,400 37,887 3,200 86,600
New England Electric System 0 -- 0 -- 884 47,736 0 -- 0 --
Niagara Mohawk Holdings Inc. + 71 834 1,022 12,008 3,157 37,095 2,716 31,913 5,449 64,026
NiSource Inc. 0 -- 0 -- 1,879 24,310 0 -- 0 --
Northeast Utilities 0 -- 0 -- 1,779 33,467 0 -- 0 --
Northern States Power Co. (Minnesota) 90 1,581 1,310 23,007 2,694 47,313 2,446 42,958 4,523 79,435
OGE Energy Corp. 0 -- 0 -- 1,173 20,161 0 -- 0 --
PECO Energy Co. 232 8,656 1,493 55,708 3,512 131,042 3,245 121,079 6,547 244,285
PG&E Corp. 146 3,011 2,365 48,778 6,439 132,804 5,381 110,983 11,702 241,354
Pinnacle West Capital Corp. 0 -- 210 5,801 1,249 34,504 900 24,862 2,200 60,775
Potomac Electric Power Co. 0 -- 0 -- 1,683 34,186 0 -- 0 --
PPL Corp. 87 1,751 1,110 22,339 2,527 50,856 2,173 43,732 4,987 100,363
Public Service Company of New Mexico 0 -- 0 -- 570 8,764 420 6,457 0 --
Public Service Enterprise Group Inc. 108 3,132 1,530 44,370 3,839 111,331 3,326 96,454 6,719 194,851
Puget Sound Energy Inc. 0 -- 0 -- 851 17,286 0 -- 0 --
Reliant Energy Inc. 234 4,812 1,793 36,869 5,019 103,203 4,160 85,540 8,907 183,150
SCANA Corp. 0 -- 0 -- 820 19,534 0 -- 0 --
Sierra Pacific Resources 444 6,049 317 4,319 571 7,780 421 5,736 397 5,409
Southern Co. 455 10,095 4,475 99,289 11,365 252,161 9,881 219,235 20,990 465,716
TECO Energy Inc. 0 -- 0 -- 1,668 30,024 0 -- 0 --
Texas Utilities Co. 161 5,253 1,649 53,799 4,728 154,251 3,926 128,086 8,476 276,530
Unicom Corp. 128 4,840 1,354 51,198 3,597 136,012 3,099 117,181 6,607 249,827
UtiliCorp United Inc. 0 -- 0 -- 888 14,541 0 -- 0 --
Wisconsin Energy Corp. 0 -- 0 -- 1,542 27,274 0 -- 0 --
-------- ---------- ----------- ---------- ------------
156,863 1,233,774 3,843,043 2,817,201 5,862,809
ELECTRICAL COMPONENTS & EQUIPMENT
Percent of Net Assets 0.08% 0.14% 0.19% 0.24% 0.28%
American Power Conversion Corp. + 600 20,362 1,724 58,508 3,270 110,976 2,774 94,143 8,732 296,342
C-Cube Microsystems Inc. + 100 9,325 264 24,618 263 24,525 357 33,290 718 66,953
Emerson Electric Co. 355 16,175 2,603 118,599 7,330 333,973 6,086 277,293 13,698 624,115
</TABLE>
36
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
Hubbell Inc. "B" 232 $ 5,640 574 $ 13,955 1,409 $ 34,256 1,359 $ 33,041 3,016 $ 73,326
Molex Inc. 216 12,069 834 46,600 2,667 149,019 2,078 116,108 4,753 265,574
Molex Inc. "A" 112 4,746 949 40,214 1,805 76,487 1,786 75,682 3,812 161,534
UCAR International Inc. + 200 3,050 528 8,052 964 14,701 893 13,618 2,143 32,681
-------- ---------- ---------- ---------- ----------
71,367 310,546 743,937 643,175 1,520,525
ELECTRONICS
Percent of Net Assets 0.60% 0.71% 0.91% 1.17% 1.52%
Agilent Technologies Inc. + 0 -- 0 -- 0 -- 0 -- 400 41,475
Analog Devices Inc. + 191 29,987 1,573 246,961 2,966 465,662 2,572 403,804 8,180 1,284,260
Arrow Electronics Inc. + 286 8,651 1,037 31,369 2,190 66,247 1,961 59,320 4,572 138,303
Avnet Inc. 230 15,381 284 18,992 689 46,077 746 49,889 2,156 144,182
AVX Corp. 200 12,700 164 10,414 426 27,051 336 21,336 1,048 66,548
Gentex Corp. + 100 2,922 200 5,844 300 8,756 200 5,844 500 14,594
Integrated Device Technology Inc. + 700 25,813 704 25,960 1,590 58,631 814 30,016 2,255 83,153
Jabil Circuit Inc. + 100 6,944 152 10,554 702 48,745 514 35,691 1,414 98,185
Johnson Controls Inc. 86 4,590 465 24,819 1,436 76,647 1,110 59,246 2,500 133,438
Linear Technology Corp. 872 91,505 1,596 167,480 2,704 283,751 2,596 272,418 8,438 885,463
Maxim Integrated Products Inc. + 1,200 80,175 2,440 163,022 4,582 306,135 3,908 261,103 13,118 876,446
Microchip Technology Inc. + 450 28,097 756 47,203 1,972 123,127 1,642 102,522 4,257 265,796
Millipore Corp. 42 2,244 151 8,069 578 30,887 476 25,436 1,188 63,484
Parker Hannifin Corp. 138 5,002 637 23,091 1,848 66,990 1,398 50,677 3,264 118,320
PE Corp. (Biosystems Group) 76 8,018 944 99,592 2,836 299,198 2,232 235,476 6,228 657,054
PerkinElmer Inc. 25 1,616 323 20,874 742 47,952 608 39,292 1,297 83,819
Sanmina Corp. + 100 11,706 240 28,095 701 82,061 514 60,170 1,490 174,423
SCI Systems Inc. + 600 24,150 1,208 48,622 2,804 112,861 2,658 106,984 6,030 242,707
Sensormatic Electronics Corp. + 535 10,165 765 14,535 1,610 30,590 1,036 19,684 1,865 35,435
Solectron Corp. + 1,170 76,635 1,668 109,254 4,086 267,633 3,050 199,775 8,856 580,068
Symbol Technologies Inc. 277 26,350 968 92,081 1,792 170,464 1,918 182,450 3,975 378,122
Tektronix Inc. 3 174 346 20,068 784 45,472 698 40,484 1,394 80,852
Teradyne Inc. + 142 12,354 1,686 146,682 3,302 287,274 4,128 359,136 8,598 748,026
Thermo Electron Corp. + 69 1,078 966 15,094 2,811 43,922 2,376 37,125 4,991 77,984
Thermo Instrument Systems Inc. + 50 803 125 2,008 194 3,116 357 5,734 814 13,075
Thomas & Betts Corp. 58 1,301 434 9,738 785 17,613 843 18,915 1,484 33,297
Varian Inc. + 177 7,014 431 17,186 820 32,697 795 31,701 1,659 66,153
Vishay Intertechnology Inc. + 578 24,854 515 22,145 1,115 47,945 902 38,786 2,111 90,773
Vitesse Semiconductor Corp. + 400 41,525 1,384 143,676 3,156 327,632 2,936 304,793 6,660 691,391
Waters Corp. + 0 -- 504 49,423 1,602 157,096 1,350 132,384 400 39,225
Watts Industries Inc. "A" 308 4,466 0 -- 407 5,901 298 4,321 0 --
-------- ---------- ---------- ---------- ----------
566,220 1,622,851 3,588,133 3,194,512 8,206,051
ENGINEERING & CONSTRUCTION
Percent of Net Assets 0.00% 0.01% 0.01% 0.01% 0.01%
Fluor Corp. 113 3,213 514 14,617 1,189 33,812 956 27,186 2,168 61,653
Foster Wheeler Corp. 32 180 116 653 607 3,414 478 2,689 979 5,507
Granite Construction Inc. 0 -- 0 -- 355 8,853 0 -- 0 --
Jacobs Engineering Group Inc. + 0 -- 0 -- 327 9,176 0 -- 0 --
Morrison Knudsen Corp. + 4 8 17 34 27 54 25 50 42 84
-------- ---------- ---------- ---------- ----------
3,401 15,304 55,309 29,925 67,244
ENTERTAINMENT
Percent of Net Assets 0.04% 0.05% 0.07% 0.09% 0.10%
Ascent Entertainment Group + 249 3,782 258 3,918 351 5,331 354 5,376 700 10,631
Boyd Gaming Corp. + 0 -- 176 913 0 -- 368 1,909 719 3,730
Gaylord Entertainment Co. "A" 105 2,894 92 2,536 123 3,390 153 4,217 221 6,091
GTECH Holdings Corp. + 200 4,000 440 8,800 877 17,540 804 16,080 2,066 41,320
Harrah's Entertainment Inc. + 48 918 522 9,983 2,032 38,862 1,432 27,387 3,493 66,804
International Game Technology Inc. + 363 6,466 821 14,624 1,613 28,732 1,957 34,859 4,672 83,220
Lakes Gaming Inc. + 100 787 88 693 153 1,205 112 882 199 1,567
Mandalay Resort Group Inc. + 429 6,033 1,170 16,453 2,411 33,905 2,198 30,909 4,712 66,262
Metro-Goldwyn-Mayer Inc. + 100 2,387 503 12,009 903 21,559 413 9,860 1,317 31,443
MGM Grand Inc. 282 5,605 244 4,849 102 2,027 498 9,898 752 14,946
Mirage Resorts Inc. + 17 270 1,001 15,891 3,005 47,704 2,559 40,624 5,314 84,360
Park Place Entertainment Corp. + 464 5,249 1,913 21,641 4,986 56,404 3,859 43,655 9,868 111,632
Premier Parks Inc. + 0 -- 100 2,025 300 6,075 200 4,050 500 10,125
SFX Entertainment Inc. "A" + 0 -- 0 -- 200 7,700 200 7,700 400 15,400
Speedway Motorsports Inc. + 0 -- 0 -- 0 -- 0 -- 100 3,062
-------- ---------- ---------- ---------- ----------
38,391 114,335 270,434 237,406 550,593
ENVIRONMENTAL CONTROL
Percent of Net Assets 0.01% 0.03% 0.05% 0.05% 0.06%
Allied Waste Industries Inc. + 0 -- 1,070 6,019 2,592 14,580 2,400 13,500 5,023 28,254
IT Group Inc. + 0 -- 0 -- 120 915 0 -- 0 --
Republic Services Inc. "A" + 100 1,087 200 2,175 400 4,350 300 3,262 700 7,612
Safety-Kleen Corp. + 87 424 379 1,848 965 4,704 773 3,768 1,413 6,888
Waste Management Inc. 502 7,530 3,364 50,460 10,350 155,250 8,448 126,720 19,034 285,510
-------- ---------- ---------- ---------- ----------
9,041 60,502 179,799 147,250 328,264
</TABLE>
37
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
FOOD
Percent of Net Assets 0.23% 0.47% 0.79% 0.94% 1.15%
Albertson's Inc. 185 $ 4,532 2,548 $ 62,426 6,993 $ 171,329 5,886 $ 144,207 13,093 $ 320,779
Archer-Daniels-Midland Co. 430 4,327 3,988 40,129 10,323 103,875 9,105 91,619 18,745 188,622
Aurora Foods Inc. + 100 281 200 562 300 844 200 562 300 844
Bestfoods 221 9,268 1,289 54,057 4,305 180,541 3,276 137,387 8,139 341,329
Campbell Soup Co. 180 5,107 2,074 58,850 6,037 171,300 4,971 141,052 12,449 353,240
ConAgra Inc. 548 8,974 2,392 39,169 8,197 134,226 6,663 109,107 14,966 245,068
Corn Products International Inc. 60 1,414 260 6,126 610 14,373 508 11,970 1,308 30,820
Dean Foods Co. 124 3,363 275 7,459 958 25,986 815 22,107 2,124 57,613
Delhaize America Inc. "A" 200 3,350 699 11,708 1,438 24,086 1,239 20,753 2,996 50,183
Delhaize America Inc. "B" 400 7,500 754 14,137 1,652 30,975 1,484 27,825 3,388 63,525
Dole Food Co. 146 2,245 425 6,534 1,234 18,973 1,032 15,867 2,507 38,545
Earthgrains Company (The) 56 840 257 3,855 586 8,790 479 7,185 1,369 20,535
Fleming Companies Inc. 2 31 256 3,952 702 10,837 526 8,120 1,165 17,985
Flowers Industries Inc. 309 3,998 1,062 13,740 2,219 28,708 1,975 25,552 4,541 58,749
General Mills Inc. 200 6,588 1,134 37,351 3,990 131,421 3,164 104,214 8,754 288,335
Great Atlantic & Pacific Tea Co. 59 1,383 278 6,516 607 14,227 597 13,992 797 18,680
Hannaford Brothers Co. 236 16,815 205 14,606 628 44,745 572 40,755 1,537 109,511
Heinz (H.J.) Co. 15 479 1,918 61,256 5,040 160,965 4,012 128,133 10,461 334,098
Hershey Foods Corp. 159 6,986 700 30,756 2,338 102,726 1,809 79,483 4,103 180,276
Hormel Foods Corp. 400 6,675 832 13,884 2,080 34,710 1,922 32,073 4,770 79,599
IBP Inc. 332 4,150 986 12,325 1,636 20,450 2,370 29,625 4,793 59,912
Imperial Sugar Co. 0 -- 0 -- 117 314 184 494 0 --
International Home Foods Inc. + 0 -- 152 2,574 601 10,179 514 8,706 1,513 25,626
International Multifoods Corp. 0 -- 0 -- 240 2,625 0 -- 0 --
Interstate Bakeries Corp. 0 -- 328 3,751 852 9,745 871 9,962 2,320 26,535
Keebler Foods Co. + 200 5,075 88 2,233 175 4,441 793 20,122 1,766 44,812
Kellogg Co. 46 1,164 1,774 44,904 5,616 142,155 4,610 116,691 11,358 287,499
Kroger Co. + 62 922 4,122 61,315 12,240 182,070 9,638 143,365 24,398 362,920
Lance Inc. 0 -- 0 -- 419 4,295 0 -- 0 --
McCormick & Co. Inc. 188 5,146 792 21,681 1,451 39,721 1,333 36,491 3,163 86,587
Michael Foods Inc. 0 -- 0 -- 201 4,397 0 -- 0 --
Morrison Management Specialist Inc. 128 2,864 58 1,298 188 4,206 118 2,640 228 5,102
Nabisco Group Holdings Corp. "A" 60 517 1,903 16,413 5,345 46,101 4,626 39,899 13,833 119,310
Nabisco Holdings Corp. 100 2,925 76 2,223 463 13,543 268 7,839 430 12,577
Quaker Oats Co. 102 5,502 513 27,670 1,680 90,615 1,380 74,434 3,894 210,033
Ralston Purina Co. 95 2,690 1,488 42,129 4,801 135,928 3,390 95,979 8,739 247,423
Ruddick Corp. 0 -- 0 -- 626 8,412 468 6,289 0 --
Safeway Inc. + 468 18,047 3,143 121,202 8,640 333,180 7,143 275,452 16,069 619,661
Sara Lee Corp. 241 3,615 4,136 62,040 12,959 194,385 0,376 155,640 26,864 402,960
Smucker (J.M.) Co. "A" 305 5,223 0 -- 382 6,542 295 5,052 0 --
Suiza Foods Corp. + 200 7,825 152 5,947 501 19,602 514 20,110 1,402 54,853
SUPERVALU Inc. 86 1,478 754 12,959 2,150 36,953 1,837 31,573 3,712 63,800
Sysco Corp. 50 1,641 1,669 54,764 4,885 160,289 3,703 121,505 9,334 306,272
Tootsie Roll Industries Inc. 449 13,330 215 6,383 490 14,547 301 8,936 904 26,838
Tyson Foods Inc. "A" 391 4,032 683 7,043 1,337 13,788 1,026 10,581 5,009 51,655
U.S. Foodservice + 100 1,769 100 1,769 400 7,075 300 5,306 700 12,381
Universal Foods Corp. 358 6,466 463 8,363 717 12,951 673 12,156 1,249 22,560
Vlasic Foods International + 80 225 318 894 829 2,332 749 2,107 1,792 5,040
Weis Markets Inc. 200 8,462 176 7,447 63 2,666 268 11,340 318 13,455
Whole Foods Market Inc. + 200 7,594 352 13,365 701 26,616 625 23,730 1,425 54,106
Winn-Dixie Stores Inc. 146 2,354 849 13,690 2,513 40,522 2,150 34,669 4,536 73,143
Wrigley William Jr. Co. 134 9,062 529 35,774 1,544 104,413 1,149 77,701 3,444 232,901
------- --------- --------- --------- ---------
216,234 1,077,229 3,108,695 2,550,357 6,226,297
FOREST PRODUCTS & PAPER
Percent of Net Assets 0.10% 0.20% 0.31% 0.36% 0.40%
Boise Cascade Corp. 59 1,759 473 14,101 812 24,208 866 25,818 1,553 46,299
Bowater Inc. 195 9,592 513 25,233 1,460 71,814 1,146 56,369 2,904 142,840
Champion International Corp. 122 6,313 561 29,032 1,672 86,526 1,308 67,689 2,864 148,212
Chesapeake Corp. 256 5,680 176 3,905 316 7,011 237 5,258 674 14,954
Consolidated Papers Inc. 172 6,525 657 24,925 1,638 62,142 1,311 49,736 2,962 112,371
Crown Vantage Inc. + 21 38 42 76 91 165 72 130 117 212
Deltic Timber Corp. 140 3,115 145 3,226 269 5,985 178 3,960 295 6,564
Fort James Corp. 51 959 901 16,950 3,534 66,483 2,749 51,716 6,283 118,199
Georgia-Pacific (Georgia-Pacific Group) 244 8,464 1,346 46,689 2,948 102,259 2,512 87,135 5,274 182,942
Georgia-Pacific (Timber Group) 337 7,435 1,226 27,049 2,557 56,414 1,639 36,160 4,978 109,827
Glatfelter (P.H.) Co. 486 5,953 246 3,013 674 8,256 437 5,353 780 9,555
International Paper Co. 318 11,706 2,466 90,780 6,968 256,509 5,785 212,960 12,984 477,973
Louisiana-Pacific Corp. 63 744 392 4,631 1,801 21,274 1,534 18,120 3,271 38,639
Mead Corp. 102 3,054 635 19,010 1,846 55,265 1,310 39,218 2,762 82,687
Potlatch Corp. 2 76 230 8,740 520 19,760 512 19,456 485 18,430
Schweitzer-Mauduit International Inc. 20 273 81 1,104 188 2,562 157 2,139 310 4,224
</TABLE>
38
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
Temple-Inland Inc. 49 $ 2,505 455 $ 23,262 906 $ 46,319 739 $ 37,781 1,565 $ 80,011
Wausau-Mosinee Paper Corp. 392 5,120 278 3,631 501 6,544 363 4,742 328 4,284
Westvaco Corp. 56 1,543 652 17,971 1,928 53,140 1,327 36,575 2,724 75,080
Weyerhaeuser Co. 259 13,290 1,369 70,247 3,919 201,094 3,256 167,074 7,237 371,349
Willamette Industries Inc. 109 3,699 670 22,738 1,882 63,870 1,413 47,954 3,326 112,876
------- -------- --------- -------- ---------
97,843 456,313 1,217,600 975,343 2,157,528
GAS
Percent of Net Assets 0.03% 0.03% 0.05% 0.06% 0.05%
AGL Resources Inc. 538 9,180 387 6,603 699 11,927 498 8,497 459 7,832
Eastern Enterprises 39 2,257 180 10,418 411 23,787 372 21,530 601 34,783
Indiana Energy Inc. 0 -- 0 -- 411 6,710 0 -- 0 --
KeySpan Corp. 0 -- 0 -- 630 12,836 0 -- 0 --
MCN Energy Group Inc. 0 -- 0 -- 815 19,611 0 -- 0 --
Nicor Inc. 44 1,337 320 9,720 779 23,662 691 20,989 1,239 37,635
Oneok Inc. 49 1,112 225 5,105 483 10,958 487 11,049 545 12,365
Peoples Energy Corp. 53 1,534 245 7,090 549 15,887 567 16,408 761 22,021
Sempra Energy 48 864 1,463 26,334 3,953 71,154 3,459 62,262 6,980 125,640
Washington Gas Light Co. 464 11,078 317 7,568 547 13,060 405 9,669 389 9,287
------- -------- ------- -------- ---------
27,362 72,838 209,592 150,404 249,563
HAND / MACHINE TOOLS
Percent of Net Assets 0.02% 0.02% 0.03% 0.04% 0.05%
Black & Decker Corp. 116 3,821 516 16,996 1,402 46,178 1,224 40,316 2,579 84,946
Kennametal Inc. 300 6,975 264 6,138 360 8,370 268 6,231 630 14,647
Milacron Inc. 0 -- 337 4,676 577 8,006 462 6,410 835 11,586
Snap-On Inc. 38 829 347 7,569 731 15,945 762 16,621 1,643 35,838
SPX Corp. + 33 2,873 43 3,744 255 22,201 217 18,893 540 47,014
Stanley Works (The) 92 2,116 431 9,913 1,414 32,522 872 20,056 2,415 55,545
------- -------- ------- -------- ---------
16,614 49,036 133,222 108,527 249,576
HEALTH CARE
Percent of Net Assets 0.34% 0.75% 1.15% 1.39% 1.74%
Allergan Inc. 110 5,534 748 37,634 1,698 85,431 1,546 77,783 3,676 184,949
Apria Healthcare Group, Inc. + 500 7,125 528 7,524 701 9,989 714 10,174 1,248 17,784
Arrow International Inc. 0 -- 88 3,476 0 -- 0 -- 177 6,991
Bard (C.R.) Inc. 43 1,698 435 17,182 773 30,533 867 34,246 1,621 64,029
Bausch & Lomb Inc. 46 2,426 461 24,318 915 48,266 755 39,826 1,585 83,609
Baxter International Inc. 205 11,172 1,732 94,394 4,870 265,415 4,056 221,052 9,083 495,023
Beckman Coulter Inc. 194 9,336 196 9,432 545 26,228 519 24,977 1,484 71,417
Becton Dickinson & Co. 78 2,423 1,524 47,339 4,192 130,214 3,380 104,991 8,175 253,936
Beverly Enterprises Inc. + 575 1,509 1,360 3,570 2,642 6,935 2,459 6,455 5,535 14,529
Biomet Inc. 112 3,696 576 19,008 1,801 59,433 1,427 47,091 3,410 112,530
Boston Scientific Corp. + 12 219 2,131 38,891 6,947 126,783 5,549 101,269 12,628 230,461
Columbia/HCA Healthcare Corp. 340 6,566 4,264 82,349 0,471 202,221 9,217 178,003 19,454 375,705
Covance Inc. + 190 2,707 511 7,282 902 12,853 583 8,308 1,354 19,294
Foundation Health Systems + 391 3,250 1,443 11,995 2,702 22,460 2,522 20,964 5,571 46,309
Genzyme Surgical Products + 22 280 124 1,565 59 745 165 2,083 243 3,068
Guidant Corp. + 157 10,578 1,428 96,211 4,474 301,436 3,254 219,238 9,361 630,697
Health Management Associates Inc."A" + 962 10,341 2,095 22,521 4,364 46,913 3,676 39,517 12,290 132,117
Healthsouth Corp. + 190 926 2,700 13,163 6,907 33,672 6,304 30,732 12,065 58,817
Hillenbrand Industries Inc. 200 6,075 328 9,963 689 20,928 604 18,346 2,473 75,117
Humana Inc. + 67 456 1,000 6,813 2,722 18,544 2,457 16,738 4,455 30,350
IDEXX Laboratories Inc. + 400 11,825 440 13,007 701 20,723 536 15,845 983 29,060
Johnson & Johnson 740 53,095 6,693 480,223 0,535 1,473,386 6,820 1,206,835 44,432 3,187,996
Laboratory Corporation of
America Holdings + 660 2,640 367 1,468 1,014 4,056 710 2,840 1,281 5,124
LifePoint Hospitals Inc. + 0 -- 141 2,124 572 8,580 436 6,567 1,087 16,305
Lincare Holdings Inc. + 0 -- 340 7,969 601 14,086 614 14,391 1,600 37,500
Mallinckrodt Inc. 77 1,896 459 11,303 998 24,576 870 21,424 1,927 47,452
Manor Care Inc. + 1 9 651 5,656 1,894 16,454 1,487 12,918 4,622 40,154
Medtronic Inc. 1,682 81,472 7,618 368,997 7,488 847,075 6,154 782,459 38,738 1,876,372
Mid Atlantic Medical Services Inc. + 400 3,275 440 3,603 714 5,846 446 3,652 1,248 10,218
NovaCare Inc. + 0 -- 0 -- 954 170 734 131 0 --
Oakley Inc. + 600 5,175 528 4,554 1,152 9,936 814 7,021 1,160 10,005
Oxford Health Plans Inc. + 400 6,175 880 13,585 1,665 25,703 1,696 26,182 3,468 53,537
PacifiCare Health Systems Inc. "A" + 286 12,995 222 10,087 1,051 47,755 667 30,307 1,469 66,748
Quest Diagnostics Inc. + 46 1,578 211 7,240 451 15,475 347 11,906 829 28,445
Quorum Health Group Inc. + 50 445 584 5,201 1,164 10,367 948 8,443 2,243 19,977
St. Jude Medical Inc. + 132 3,448 461 12,044 1,480 38,665 1,004 26,230 2,185 57,083
Steris Corp. + 200 1,937 880 8,525 1,678 16,256 1,607 15,568 3,368 32,627
Stryker Corp. 348 20,358 710 41,535 1,487 86,989 1,139 66,631 4,186 244,881
Tenet Healthcare Corp. + 34 595 1,952 34,160 5,133 89,827 4,244 74,270 9,220 161,350
Thermo Cardiosystems Inc. + 150 2,194 220 3,217 263 3,846 268 3,920 498 7,283
Thermolase Corp. + 0 -- 88 170 0 -- 0 -- 365 707
Total Renal Care Holdings + 0 -- 980 2,940 100 300 0 -- 188 564
</TABLE>
39
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
Triad Hospitals Inc. + 0 $ -- 241 $ 3,856 572 $ 9,152 526 $ 8,416 1,087 $ 17,392
Trigon Healthcare Inc. + 0 -- 328 10,475 200 6,387 100 3,194 400 12,775
United Healthcare Corp. 157 8,027 1,444 73,825 3,249 166,105 2,667 136,350 5,992 306,341
Universal Health Services + 200 7,775 152 5,909 501 19,476 514 19,982 1,313 51,043
Varian Medical Systems Inc. + 177 7,069 431 17,213 820 32,749 795 31,750 1,659 66,256
Vencor Inc. + 500 90 616 111 1,315 237 1,053 190 2,185 393
VISX Inc. + 0 -- 100 1,694 400 6,775 200 3,387 400 6,775
Wellpoint Health Networks Inc. + 0 -- 340 22,950 1,051 70,942 757 51,097 1,785 120,487
-------- ---------- ---------- ---------- ----------
318,390 1,728,271 4,520,893 3,793,699 9,421,582
HOLDING COMPANIES-DIVERSIFIED
Percent of Net Assets 0.01% 0.10% 0.13% 0.13% 0.20%
Berkshire Hathaway Inc. "A" + 0 -- 5 220,000 110 484,000 80 352,000 240 1,056,000
Berkshire Hathaway Inc. "B" + 9 12,960 3 4,320 21 30,240 4 5,760 26 37,440
-------- ---------- ---------- ---------- ----------
12,960 224,320 514,240 357,760 1,093,440
HOME BUILDERS
Percent of Net Assets 0.01% 0.02% 0.02% 0.02% 0.03%
Centex Corp. 104 2,048 468 9,214 760 14,963 689 13,565 1,647 32,425
Champion Enterprises Inc. + 0 -- 0 -- 100 631 0 -- 188 1,187
Clayton Homes Inc. 557 4,526 1,421 11,546 2,888 23,465 2,612 21,223 6,138 49,871
Fleetwood Enterprises Inc. 32 494 313 4,832 498 7,688 455 7,024 780 12,041
Kaufman & Broad Home Corp. 49 937 298 5,699 614 11,743 437 8,358 819 15,663
Oakwood Homes Corp. 200 512 616 1,578 1,239 3,175 1,171 3,001 2,408 6,170
Pulte Corp. 90 1,513 344 5,784 666 11,197 527 8,860 991 16,661
Skyline Corp. 20 430 39 838 195 4,192 70 1,505 117 2,515
-------- ---------- ---------- ---------- ----------
10,460 39,491 77,054 63,536 136,533
HOME FURNISHINGS
Percent of Net Assets 0.02% 0.04% 0.05% 0.06% 0.08%
Bassett Furniture Industries inc. 25 337 44 594 175 2,362 107 1,444 182 2,457
Ethan Allen Interiors Inc. 300 6,994 278 6,481 1,001 23,336 1,071 24,968 2,119 49,399
Furniture Brands International
Inc. + 0 -- 200 3,212 300 4,819 100 1,606 200 3,212
Leggett & Platt Inc. 296 4,976 1,980 33,289 3,388 56,961 2,994 50,337 9,249 155,499
Maytag Corp. 96 2,538 424 11,210 969 25,618 1,024 27,072 2,409 63,688
Sunbeam Corp. + 300 1,237 1,155 4,764 2,028 8,365 1,975 8,147 4,475 18,459
Sunbeam Corp. Warrants
(Expire 08/24/03) + 0 -- 67 84 0 -- 0 -- 67 84
Whirlpool Corp. 73 3,965 480 26,070 1,210 65,718 968 52,574 2,189 118,890
Zenith Electronics Corp. + 44 1 89 1 279 4 230 4 367 6
-------- ---------- ---------- ---------- ----------
20,048 85,705 187,183 166,152 411,694
HOUSEHOLD PRODUCTS / WARES
Percent of Net Assets 0.04% 0.08% 0.13% 0.16% 0.19%
American Greetings Corp. "A" 123 2,122 480 8,280 991 17,095 857 14,783 2,015 34,759
Avery Dennison Corp. 70 4,248 516 31,315 1,402 85,084 1,144 69,427 3,428 208,037
Blyth Industries Inc. + 0 -- 0 -- 100 2,244 100 2,244 200 4,487
Clorox Co. 256 10,352 1,220 49,334 3,924 158,677 3,232 130,694 7,202 291,231
Dial Corp. 436 6,267 1,026 14,749 1,877 26,982 2,414 34,701 5,606 80,586
Enesco Group Inc. 220 1,595 150 1,087 262 1,899 191 1,385 186 1,349
Ennis Business Forms Inc. 0 -- 0 -- 216 1,579 0 -- 0 --
Fortune Brands Inc. 180 3,938 1,251 27,366 2,834 61,994 2,369 51,822 5,027 109,966
Gibson Greetings Inc. + 0 -- 0 -- 314 2,532 0 -- 0 --
Harland (John H.) Co. 55 849 218 3,365 543 8,383 550 8,491 997 15,391
Jostens Inc. 77 1,853 65 1,564 480 11,550 372 8,951 948 22,811
National Presto Industries Inc. 0 -- 0 -- 102 3,226 72 2,277 0 --
Newell Rubbermaid Inc. 5 116 1,297 29,993 4,627 106,999 3,756 86,857 8,504 196,655
Pennzoil-Quaker State Co. 0 -- 398 3,482 1,283 11,226 986 8,628 1,454 12,722
Standard Register Co. 301 4,101 0 -- 379 5,164 279 3,801 0 --
Tupperware Corp. 63 1,083 370 6,359 1,006 17,291 794 13,647 1,927 33,120
Wallace Computer Services Inc. 90 939 176 1,837 263 2,745 277 2,891 718 7,494
Water Pik Technologies Inc. + 0 -- 62 419 165 1,112 143 965 287 1,937
-------- ---------- ---------- ---------- ----------
37,463 179,150 525,782 441,564 1,020,545
INSURANCE
Percent of Net Assets 0.39% 0.97% 1.41% 1.76% 1.95%
Aetna Inc. 154 6,333 835 34,339 2,428 99,852 1,961 80,646 4,519 185,844
AFLAC Inc. 262 9,579 2,957 108,115 4,848 177,255 4,458 162,996 9,691 354,327
Alleghany Corp. + 2 372 104 19,338 106 19,709 106 19,709 10 1,859
Allmerica Financial Corp. 24 1,002 630 26,302 1,484 61,957 1,214 50,684 1,151 48,054
Allstate Corp. 614 11,973 5,112 99,684 13,571 264,634 11,551 225,244 25,189 491,185
AMBAC Financial Group Inc. 300 13,181 516 22,672 952 41,828 971 42,663 3,480 152,902
American Financial Group Inc. 304 6,384 143 3,003 688 14,448 700 14,700 1,837 38,577
American General Corp. 226 11,794 1,718 89,658 4,152 216,682 3,696 192,885 7,718 402,783
American International Group 1,195 105,683 9,957 880,572 26,437 2,338,022 22,197 1,963,047 50,452 4,461,849
American National Insurance Co. 100 5,850 88 5,148 163 9,535 368 21,528 330 19,305
AON Corp. 245 5,130 1,543 32,296 4,099 85,812 3,588 75,113 7,671 160,612
Argonaut Group Inc. 0 -- 88 1,672 0 -- 179 3,401 265 5,035
</TABLE>
40
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
Chicago Title Corp. 106 $ 4,929 181 $ 8,416 361 $ 16,786 725 $ 33,712 817 $ 37,990
Chubb Corp. 195 9,592 1,154 56,762 2,913 143,283 2,470 121,493 5,442 267,678
Cigna Corp. 217 16,017 1,453 107,250 3,421 252,513 3,176 234,429 6,320 466,495
Cincinnati Financial Corp. 120 3,585 1,168 34,894 2,780 83,053 2,365 70,654 5,015 149,823
CNA Financial Corp. + 200 5,400 76 2,052 151 4,077 514 13,878 1,402 37,854
Conseco Inc. 2 29 1,882 27,524 5,311 77,673 4,375 63,984 9,645 141,058
Everest Re Group Ltd. 100 2,456 416 10,218 1,040 25,545 971 23,850 2,396 58,852
Financial Security Assurance
Holdings Ltd. 0 -- 0 -- 100 4,500 0 -- 100 4,500
First American Financial Corp. 100 1,162 616 7,161 1,240 14,415 961 11,172 200 2,325
Fremont General Corp. 300 2,175 804 5,829 1,327 9,621 1,150 8,337 2,473 17,929
Hancock (John) Financial
Services + 0 -- 0 -- 1,300 20,637 0 -- 4,500 71,437
Hartford Financial Services
Group Inc. 192 6,000 1,547 48,344 3,730 116,562 3,396 106,125 6,860 214,375
Hartford Life Inc. "A" 0 -- 0 -- 100 3,537 100 3,537 100 3,537
Highlands Insurance Group Inc. + 37 301 67 544 151 1,227 121 983 191 1,552
Horace Mann Educators Corp. 300 4,650 616 9,548 1,240 19,220 1,161 17,995 2,685 41,617
HSB Group Inc. 345 8,539 170 4,207 556 13,761 546 13,514 1,428 35,343
Jefferson-Pilot Corp. 140 7,289 618 32,175 1,765 91,890 1,462 76,115 3,124 162,643
Leucadia National Corp. 0 -- 328 7,011 852 18,211 871 18,618 2,308 49,333
Lincoln National Corp. 238 6,619 1,432 39,828 3,228 89,779 2,910 80,934 5,902 164,149
Loews Corp. 135 6,007 733 32,618 1,907 84,861 1,567 69,731 3,363 149,653
Marsh & McLennan Companies Inc. 220 17,023 1,577 122,020 4,550 352,056 3,783 292,710 8,450 653,819
MBIA Inc. 94 3,607 624 23,946 1,802 69,152 1,370 52,574 2,860 109,753
Mercury General Corp. 200 4,537 152 3,448 501 11,366 514 11,661 1,325 30,061
MGIC Investment Corp. 95 3,551 734 27,433 1,911 71,424 1,463 54,680 3,339 124,795
MONY Group Inc. 0 -- 0 -- 200 5,725 100 2,862 400 11,450
Ohio Casualty Corp. 500 6,187 504 6,237 1,102 13,637 928 11,484 2,704 33,462
Old Republic International Corp. 525 6,136 1,506 17,601 3,124 36,512 2,824 33,005 6,438 75,244
PMI Group Inc. (The) 150 5,447 228 8,279 621 22,550 504 18,302 1,722 62,530
Progressive Corporation 75 4,462 425 25,287 1,224 72,828 918 54,621 2,101 125,009
Protective Life Corp. 100 2,200 692 15,224 1,302 28,644 1,239 27,258 3,026 66,572
Radian Group Inc. 100 3,469 264 9,157 526 18,246 536 18,592 1,348 46,759
Reinsurance Group of America Inc. 0 -- 528 9,009 0 -- 0 -- 100 1,706
Reliance Group Holdings Inc. 100 444 892 3,958 1,778 7,890 1,518 6,736 3,456 15,336
Reliastar Financial Corp. 400 11,175 1,056 29,502 1,865 52,103 1,796 50,176 4,881 136,363
Safeco Corp. 156 3,276 843 17,703 2,167 45,507 2,038 42,798 4,378 91,938
St. Paul Companies Inc. 164 3,669 1,470 32,891 3,898 87,218 3,270 73,166 6,978 156,133
Torchmark Corp. 142 2,813 832 16,484 2,366 46,876 2,063 40,873 4,304 85,273
Transatlantic Holdings Inc. 126 8,875 220 15,496 366 25,780 437 30,781 836 58,886
Travelers Property Casualty Corp. 0 -- 188 5,945 300 9,487 268 8,475 500 15,812
21st Century Insurance Group 0 -- 1,044 18,400 2,016 35,532 1,864 32,853 288 5,076
UICI + 200 1,737 528 4,620 877 7,674 804 7,035 2,143 18,751
Unitrin Inc. 300 10,181 604 20,498 1,402 47,580 1,328 45,069 2,926 99,301
UnumProvident Corp. 269 3,598 1,754 23,460 3,849 51,480 3,475 46,478 7,043 94,200
Wesco Financial Corp. 0 -- 0 -- 0 -- 0 -- 88 19,778
White Mountains Insurance Group
Inc. 0 -- 0 -- 0 -- 0 -- 100 11,025
--------- ---------- ---------- ---------- -----------
364,418 2,213,778 5,540,152 4,783,866 10,549,507
IRON / STEEL
Percent of Net Assets 0.02% 0.03% 0.05% 0.05% 0.06%
AK Steel Holding Corp. 42 349 316 2,627 684 5,688 582 4,838 1,366 11,353
Allegheny Technologies Inc. 41 694 629 10,654 1,611 27,286 1,406 23,814 2,819 47,747
Bethlehem Steel Corp. + 7 40 603 3,430 2,316 13,172 2,002 11,386 3,709 21,095
LTV Corp. 900 2,981 1,408 4,664 2,730 9,043 2,511 8,318 6,153 20,382
Nucor Corp. 121 6,012 499 24,794 1,516 75,326 1,135 56,395 2,582 128,293
Oregon Steel Mills Inc. 0 -- 0 -- 262 1,081 178 734 0 --
Ryerson Tull Inc. 207 2,743 381 5,048 1,298 17,198 1,132 14,999 2,371 31,416
Steel Dynamics Inc. + 0 -- 264 4,059 526 8,087 357 5,489 983 15,114
USX-U.S. Steel Group Inc. 126 2,756 455 9,953 1,599 34,978 1,069 23,384 2,147 46,966
--------- ---------- ---------- ---------- -----------
15,575 65,229 191,859 149,357 322,366
LEISURE TIME
Percent of Net Assets 0.08% 0.12% 0.15% 0.18% 0.21%
AMF Bowling Inc. + 0 -- 176 572 451 1,466 368 1,196 807 2,623
Bally Total Fitness Holding
Corp. + 26 699 67 1,801 162 4,354 104 2,795 197 5,294
Brunswick Corp. 126 2,229 595 10,524 1,792 31,696 1,225 21,667 2,595 45,899
Callaway Golf Co. 296 3,552 950 11,400 1,816 21,792 1,846 22,152 3,935 47,220
Carnival Corp. "A" 570 16,423 4,302 123,951 10,470 301,667 8,659 249,487 19,378 558,329
Galileo International Inc. 200 3,400 240 4,080 777 13,209 793 13,481 1,855 31,535
Harley-Davidson Inc. 736 50,140 1,670 113,769 2,921 198,993 2,657 181,008 6,100 415,562
Navigant International Inc. + 0 -- 81 810 168 1,680 144 1,440 422 4,220
Sabre Holdings Corp. + 0 -- 176 7,062 351 14,084 268 10,753 442 17,735
--------- ---------- ---------- ---------- -----------
76,443 273,969 588,941 503,979 1,128,417
LODGING
Percent of Net Assets 0.04% 0.05% 0.07% 0.09% 0.11%
Choice Hotels International
Inc. + 59 981 444 7,381 1,069 17,772 720 11,970 1,175 19,534
Crestline Capital Corp. + 100 1,812 185 3,353 298 5,401 428 7,757 992 17,980
</TABLE>
41
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ----------------- ------------------ ------------------ -----------------
Shares Value Shares Value Shares Value Shares Value Shares Value
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Extended Stay America Inc. + 400 $ 2,600 880 $ 5,720 1,765 $ 1,472 1,618 $ 10,517 3,745 $ 24,342
Hilton Hotels Corp. 440 3,080 2,206 15,442 5,475 38,325 5,223 36,561 12,006 84,042
Homestead Village Inc. + 75 164 76 166 188 411 201 440 266 582
Interstate Hotels Corp. + 25 78 63 197 214 669 206 644 331 1,034
Marriott International Inc. 296 8,159 1,412 38,918 4,165 114,798 3,306 91,122 7,482 206,223
Starwood Hotels & Resorts
Worldwide Inc. 864 19,386 1,782 39,984 3,390 76,063 3,297 73,976 9,493 212,999
Sunburst Hospitality Corp. + 19 93 147 717 422 2,057 340 1,657 458 2,233
Wyndham International Inc. "A" + 751 1,784 1,911 4,539 3,624 8,607 3,287 7,807 7,531 17,886
--------- --------- ---------- -------- ----------
38,137 116,417 275,575 242,451 586,855
MACHINERY
Percent of Net Assets 0.09% 0.17% 0.24% 0.30% 0.31%
AGCO Corp. 300 3,300 792 8,712 1,590 17,490 1,528 16,808 3,480 38,280
Briggs & Stratton Corp. 42 1,404 158 5,283 442 14,779 449 15,013 644 21,534
Caterpillar Inc. 310 10,869 2,209 77,453 6,120 214,582 5,268 184,709 11,074 388,282
Cognex Corp. + 0 -- 264 11,599 614 26,978 536 23,550 1,248 54,834
Cummins Engine Company Inc. 25 833 288 9,594 621 20,687 509 16,956 881 29,348
Deere & Co. 189 6,757 1,794 64,135 4,165 148,899 3,602 128,772 7,070 252,752
Dover Corp. 185 7,134 1,493 57,574 3,602 138,902 3,138 121,009 7,294 281,275
Flowserve Corp. 200 2,300 528 6,072 1,152 13,248 982 11,293 2,231 25,656
Harnischfeger Industries Inc. + 40 30 175 131 913 685 684 513 1,450 1,088
Imation Corp. + 276 8,539 454 14,046 615 19,027 653 20,202 1,528 47,273
Ingersoll-Rand Co. 172 6,590 1,180 45,209 2,912 111,566 2,477 94,900 4,892 187,425
Magnetek Inc. + 0 -- 0 -- 322 2,777 0 -- 0 --
McDermott International Inc. 0 -- 346 3,244 853 7,997 1,022 9,581 1,718 16,106
NACCO Industries Inc. 0 -- 48 2,085 147 6,385 149 6,472 179 7,775
Nordson Corp. 214 8,293 141 5,464 257 9,959 186 7,207 340 13,175
Presstek Inc. + 200 4,750 352 8,360 451 10,711 457 10,854 630 14,962
Rockwell International Corp. 210 9,503 1,404 63,531 3,279 148,375 2,913 131,813 5,796 262,269
Stewart & Stevenson Services
Inc. 364 3,572 334 3,277 434 4,259 326 3,199 846 8,301
Tecumseh Products Co. "A" 241 10,393 167 7,202 302 13,024 222 9,574 381 16,431
Unova Inc. + 34 393 382 4,417 1,027 11,875 730 8,441 1,567 18,118
--------- --------- ---------- --------- ----------
84,660 397,388 942,205 820,866 1,684,884
MANUFACTURERS
Percent of Net Assets 200 0.62% 1.56% 2.62% 3.13% 4.00%
Carlisle Companies Inc. 123 6,625 152 5,035 501 16,596 514 17,026 1,413 46,806
Cooper Industries Inc. 185 3,721 734 22,203 2,053 62,103 1,600 48,400 3,377 102,154
Corning Inc. 20 34,780 1,218 228,984 3,958 744,104 3,163 594,644 8,556 1,608,528
Crane Co. 190 398 507 10,077 997 19,815 796 15,821 1,982 39,392
Danaher Corp. 233 7,754 687 28,038 2,343 95,624 1,845 75,299 4,591 187,370
Eastman Kodak Co. 76 13,354 2,232 127,922 5,766 330,464 4,626 265,128 9,936 569,457
Eaton Corp. 498 5,695 459 34,396 1,229 92,098 959 71,865 2,154 161,415
Federal Signal Corp. 2 7,439 431 6,438 707 10,561 716 10,695 1,672 24,975
FMC Corp. 97 223 10,774 608 29,374 566 27,345 723 34,930
General Electric Co. 2,503 330,865 16,732 2,211,761 48,914 6,465,819 40,508 5,354,651 105,612 13,960,586
Harsco Corp. 238 5,905 434 10,769 982 24,366 1,012 25,110 2,391 59,327
Illinois Tool Works Inc. 290 14,989 1,787 92,366 5,044 260,712 4,228 218,535 9,398 485,759
ITT Industries Inc. 126 3,056 731 17,727 2,121 51,434 1,594 38,654 3,282 79,588
Lancaster Colony Corp. 107 3,183 231 6,872 681 20,260 657 19,546 1,759 52,330
Mark IV Industries Inc. 247 4,940 556 11,120 1,126 22,520 948 18,960 2,298 45,960
Mascotech Inc. 0 -- 264 3,696 0 -- 357 4,998 807 11,298
Minnesota Mining &
Manufacturing Co. 395 34,809 2,515 221,634 6,837 602,511 5,659 498,699 12,716 1,120,598
National Service Industries
Inc. + 39 800 322 6,601 646 13,243 559 11,459 944 19,352
NCH Corp. 0 -- 0 -- 109 4,319 79 3,130 0 --
Newport News Shipbuilding Inc. 64 1,812 257 7,276 539 15,260 415 11,750 847 23,981
Pall Corp. 13 257 642 12,679 2,220 43,845 1,783 35,214 3,608 71,258
Pentair Inc. 200 6,875 240 8,250 756 25,987 609 20,934 1,766 60,706
Pittston Brink's Group 352 6,292 614 10,975 1,341 23,970 1,115 19,931 2,732 48,834
Polaroid Corp. 34 852 327 8,195 686 17,193 632 15,839 1,027 25,739
PPG Industries Inc. 185 9,134 1,289 63,644 2,888 142,595 2,521 124,474 5,351 264,206
Teleflex Inc. 350 9,888 240 6,780 596 16,837 593 16,752 1,678 47,403
Textron Inc. 127 7,747 949 57,889 2,626 160,186 2,284 139,324 5,138 313,418
Trinity Industries Inc. 222 4,912 363 8,031 956 21,151 903 19,979 2,213 48,963
Tyco International Ltd. 1,444 54,782 8,504 322,621 24,786 940,319 20,066 761,254 53,582 2,032,767
U.S. Industries Inc. 427 4,884 1,246 14,251 2,439 27,896 2,236 25,574 5,279 60,379
--------- --------- ---------- --------- ----------
585,845 3,577,004 10,301,162 8,510,990 21,607,479
MEDIA
Percent of Net Assets 0.91% 1.59% 2.27% 2.86% 3.31%
Adelphia Communications "A" + 0 -- 0 -- 200 10,987 200 10,987 300 16,481
AMFM Inc. + 500 30,688 1,220 74,877 2,404 147,545 1,954 119,927 6,606 405,443
AT&T - Liberty Media Group
"A" + 6,010 314,023 12,444 650,199 21,050 1,099,862 19,950 1,042,387 47,794 2,497,236
AT&T - Liberty Media Group
"B" + 0 -- 0 -- 0 -- 0 -- 100 5,650
Belo (A.H.) Corp. 312 4,017 850 10,944 1,778 22,892 1,575 20,278 3,792 48,822
Cablevision Systems Corp. + 0 -- 780 50,066 1,590 102,058 1,886 121,058 500 32,094
</TABLE>
42
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020 LifePath 2030 LifePath 2040
------------------ ----------------- ------------------ ------------------ -----------------
Shares Value Shares Value Shares Value Shares Value Shares Value
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CBS Corp. + 526 $ 31,330 4,740 $ 282,326 13,018 $ 775,385 10,997 $ 655,009 24,243 $ 1,443,974
Central Newspapers Inc. "A" 200 5,713 76 2,171 151 4,313 693 19,794 1,943 55,497
Charter Communications Inc. + 0 -- 0 -- 0 -- 0 -- 200 3,512
Chris-Craft Industries Inc. + 123 8,062 243 15,992 457 30,076 316 20,797 211 13,887
Clear Channel Communications
Inc. + 233 15,524 2,081 138,647 5,784 385,359 4,742 315,936 10,677 711,355
Comcast Corp. "A" 270 11,475 4,148 176,290 12,580 534,650 9,964 423,470 27,130 1,153,025
Disney (Walt) Co. 1,549 51,892 13,061 437,543 35,193 1,178,966 29,524 989,054 65,903 2,207,750
Dow Jones & Co. Inc. 94 5,863 548 34,182 1,170 72,979 1,259 78,530 2,455 153,131
Fox Entertainment Group Inc. + 100 2,631 200 5,262 600 15,787 400 10,525 800 21,050
Gannett Co. Inc. 298 19,426 1,630 106,256 4,691 305,795 3,886 253,319 8,709 567,718
Harcourt General Inc. 79 2,721 457 15,738 1,074 36,986 876 30,167 1,888 65,018
Hearst-Argyle Television Inc. + 300 6,244 704 14,652 1,327 27,618 1,250 26,016 2,773 57,713
Hispanic Broadcasting Corp. + 100 9,344 252 23,546 514 48,027 725 67,742 1,137 106,238
Houghton Mifflin Co. 304 12,103 211 8,400 403 16,044 277 11,028 886 35,274
Infinity Broadcasting Corp. + 437 13,957 975 31,139 2,205 70,422 2,792 89,170 5,743 183,417
Jones Intercable Inc. "A" + 0 -- 0 -- 100 5,856 100 5,856 100 5,856
Knight Ridder Inc. 124 5,813 562 26,344 1,374 64,406 1,051 49,266 2,448 114,750
Lee Enterprises Inc. 498 10,365 0 -- 621 12,925 455 9,470 0 --
McGraw-Hill Companies Inc. 202 10,277 1,150 58,506 3,300 167,887 2,654 135,022 5,980 304,232
Media General Inc. "A" 280 14,473 194 10,027 359 18,556 259 13,387 503 25,999
MediaOne Group Inc. + 470 36,895 3,885 304,972 10,394 815,929 8,812 691,742 19,475 1,528,787
Meredith Corp. 82 2,347 404 11,565 711 20,352 698 19,980 1,371 39,245
New York Times Co. "A" 162 6,845 1,313 55,474 3,067 129,581 2,774 117,201 5,601 236,642
Primedia Inc. + 0 -- 76 1,411 151 2,803 168 3,119 895 16,613
Readers Digest Association "A 300 10,313 1,056 36,300 2,028 69,712 1,975 67,891 3,998 137,431
Readers Digest Association "B 200 5,950 264 7,854 263 7,824 268 7,973 630 18,743
Scholastic Corp. + 200 10,363 176 9,119 175 9,067 179 9,274 353 18,290
Scripps (E.W.) Company 200 8,625 264 11,385 514 22,166 725 31,266 1,237 53,346
TCI Satellite Entertainment
Group "A" 107 1,351 477 6,022 1,008 12,726 788 9,949 1,649 20,819
Time Warner Inc. 1,244 106,362 7,371 630,220 18,963 1,621,336 16,014 1,369,197 41,092 3,513,366
Times Mirror Co. "A" 117 5,967 324 16,524 1,064 54,264 829 42,279 2,141 109,191
Tribune Co. 232 9,034 1,544 60,120 4,128 160,734 3,980 154,971 7,208 280,662
TV Guide Inc. + 0 -- 0 -- 0 -- 0 -- 400 18,850
UnitedGlobalCom Inc. "A" + 0 -- 0 -- 200 20,900 200 20,900 200 20,900
Univision Communications Inc. + 0 -- 64 6,520 438 44,621 346 35,249 983 100,143
USA Networks Inc. + 1,044 23,425 1,258 28,226 2,478 55,600 2,222 49,856 10,690 239,857
Viacom Inc. "B" + 464 25,868 4,510 251,432 11,834 659,746 10,188 567,981 22,170 1,235,977
Washington Post Company
(The) "B" 27 13,169 88 42,922 158 77,064 119 58,042 87 42,434
Ziff-Davis Inc. + 0 -- 152 2,888 414 7,866 525 9,975 1,513 28,747
-------- --------- ---------- --------- -----------
852,455 3,656,061 8,947,672 7,785,040 17,895,165
METAL FABRICATE / HARDWARE
Percent of Net Assets 0.01% 0.01% 0.02% 0.02% 0.02%
Circor International Inc. + 154 2,041 0 -- 203 2,690 149 1,974 0 --
Kaydon Corp. 0 -- 0 -- 438 10,074 0 -- 0 --
Lawson Products Inc. 0 -- 0 -- 173 3,892 0 -- 0 --
Precision Castparts Corp. 100 2,581 264 6,814 526 13,577 547 14,119 1,160 29,942
Timken Co. 42 601 370 5,296 800 11,450 663 9,489 1,719 24,603
Worthington Industries Inc. 77 1,020 452 5,989 1,715 22,724 1,304 17,278 2,732 36,199
-------- --------- ---------- --------- -----------
6,243 18,099 64,407 42,860 90,744
METALS-DIVERSIFIED
Percent of Net Assets 0.04% 0.10% 0.15% 0.20% 0.21%
Alcoa Inc. 378 25,893 2,340 160,290 6,192 424,152 5,556 380,586 11,844 811,314
Freeport-McMoRan Copper & Gold
Inc. + 16 220 357 4,909 2,788 38,335 2,267 31,171 4,961 68,214
MAXXAM Inc. + 0 -- 0 -- 112 3,290 0 -- 0 --
Phelps Dodge Corp. 125 5,891 614 28,935 1,271 59,896 1,221 57,540 2,542 119,792
Reynolds Metals Co. 49 3,112 476 30,226 1,054 66,929 871 55,309 2,084 132,334
USEC Inc. 400 1,425 1,308 4,660 2,542 9,056 2,289 8,155 5,299 18,878
-------- --------- ---------- -------- -----------
36,541 229,020 601,658 532,761 1,150,532
MINING
Percent of Net Assets 0.00% 0.02% 0.02% 0.03% 0.03%
Battle Mountain Gold Co. + 137 291 1,287 2,735 3,666 7,790 3,020 6,418 6,486 13,783
Homestake Mining Company 42 273 1,212 7,878 3,586 23,309 3,016 19,604 5,811 37,771
Newmont Mining Corp. 87 1,914 1,371 30,333 2,763 61,120 2,533 56,043 5,496 121,599
-------- --------- ---------- -------- -----------
2,478 40,946 92,219 82,065 173,153
OFFICE / BUSINESS EQUIPMENT
Percent of Net Assets 0.02% 0.08% 0.13% 0.15% 0.18%
HON Industries Inc. 6 111 651 12,003 1,399 25,794 1,068 19,691 2,635 48,583
Lanier Worldwide Inc. + 0 -- 597 1,679 1,290 3,628 1,043 2,933 1,972 5,546
Miller (Herman) Inc. 376 7,708 1,079 22,119 2,476 50,758 2,246 46,043 4,840 99,220
Pitney Bowes Inc. 66 3,267 1,261 62,419 4,033 199,633 3,089 152,906 7,849 388,526
Xerox Corp. 420 9,109 3,842 83,323 11,150 241,816 9,204 199,612 20,720 449,365
-------- ---------- ------- ---------- -----------
20,195 181,543 521,629 421,185 991,240
</TABLE>
43
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MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
OIL & GAS PRODUCERS
Percent of Net Assets 0.52% 1.47% 2.17% 2.66% 2.99%
Amerada Hess Corp. 122 $ 6,169 505 $ 25,534 1,664 $ 84,136 1,211 $ 61,231 2,623 $ 132,625
Anadarko Petroleum Corp. 162 4,982 715 21,986 1,992 61,254 1,633 50,215 3,572 109,839
Apache Corp. 96 3,504 618 22,557 1,876 68,474 1,418 51,757 3,219 117,494
Atlantic Richfield Co. 233 16,543 2,035 144,485 5,437 386,027 4,537 322,127 10,225 725,975
Burlington Resources Inc. 194 5,359 1,151 31,796 3,553 98,152 2,834 78,289 6,522 180,170
Chesapeake Energy Corp. + 0 -- 352 1,034 976 2,867 546 1,604 984 2,891
Chevron Corp. 560 41,825 4,180 312,194 11,163 833,737 9,351 698,403 20,899 1,560,894
Coastal Corp. 144 6,057 1,318 55,438 3,567 150,037 3,030 127,449 6,545 275,299
Conoco Inc. 0 -- 3,570 70,284 10,500 206,719 8,590 169,116 19,480 383,513
Conoco Inc. "B" 0 -- 200 3,837 900 17,269 400 7,675 900 17,269
Devon Energy Corp. 14 522 358 13,336 832 30,992 800 29,800 1,759 65,523
Diamond Offshore Drilling Inc. 100 3,175 880 27,940 1,665 52,864 1,507 47,847 3,656 116,078
EEX Corp. + 45 110 355 865 664 1,619 797 1,943 1,633 3,980
ENSCO International Inc. 500 15,125 1,748 52,877 3,519 106,450 3,293 99,613 7,389 223,517
EOG Resources Inc. 100 1,525 980 14,945 1,765 26,916 1,618 24,675 3,745 57,111
Exxon Mobil Corp. 2,748 206,959 23,181 1,745,819 59,117 4,452,249 50,246 3,784,152 110,827 8,346,658
Global Marine Inc. + 600 13,463 1,889 42,384 4,107 92,151 3,564 79,967 8,523 191,235
Helmerich & Payne Inc. 0 -- 390 10,384 785 20,901 630 16,774 1,345 35,811
Kerr-McGee Corp. 97 4,341 418 18,705 1,524 68,199 1,136 50,836 2,741 122,660
McMoRan Exploration Co. + 46 920 41 820 79 1,580 41 820 79 1,580
Murphy Oil Corp. 293 14,833 310 15,694 832 42,120 779 39,437 2,293 116,083
Nabors Industries Inc. + 400 14,350 1,132 40,610 2,266 81,293 2,058 73,831 4,893 175,536
Noble Affiliates Inc. 38 855 642 14,445 1,391 31,297 1,112 25,020 2,679 60,278
Noble Drilling Corp. + 600 21,600 1,660 59,760 3,256 117,216 3,025 108,900 6,748 242,928
Occidental Petroleum Corp. 100 1,606 2,205 35,418 6,052 97,210 4,944 79,413 10,995 176,607
Ocean Energy Inc. + 891 9,523 1,961 20,958 3,682 39,351 3,588 38,347 7,694 82,230
Parker Drilling Co. + 0 -- 0 -- 840 3,360 652 2,608 0 --
Phillips Petroleum Co. 169 6,464 1,919 73,402 4,481 171,398 3,805 145,541 7,774 297,356
Pioneer Natural Resources Co. + 476 3,957 1,329 11,047 2,509 20,856 2,319 19,277 5,148 42,793
Pogo Producing Co. 300 6,938 264 6,105 526 12,164 446 10,314 1,072 24,790
Pride International Inc. + 0 -- 352 5,214 701 10,384 714 10,576 1,602 23,730
R&B Falcon Corporation + 172 2,655 1,231 19,004 2,744 42,360 2,387 36,849 5,637 87,021
Rowan Companies Inc. + 66 1,658 469 11,784 1,359 34,145 997 25,050 2,269 57,009
Santa Fe Snyder Corp. + 83 623 712 5,340 1,843 13,822 1,406 10,545 3,196 23,970
Sunoco Inc. 105 2,592 518 12,788 1,653 40,808 1,191 29,403 2,537 62,632
Texaco Inc. 502 23,814 3,471 164,656 9,427 447,193 7,818 370,866 17,503 830,299
Tosco Corp. 261 6,982 1,585 42,399 3,330 89,077 3,212 85,921 7,080 189,390
Transocean Sedco Forex Inc. 241 9,504 1,625 64,086 3,391 133,733 2,978 117,445 6,903 272,237
TransTexas Gas Corporation + 0 -- 0 -- 0 -- 0 -- 265 124
Ultramar Diamond Shamrock Corp. 410 8,892 916 19,866 1,715 37,194 2,264 49,101 4,827 104,686
Union Pacific Resources Group 42 375 1,553 13,880 4,128 36,894 3,717 33,221 7,073 63,215
Unocal Corp. 104 2,782 1,586 42,425 3,980 106,465 3,381 90,442 7,314 195,650
USX-Marathon Group Inc. 255 5,514 1,980 42,818 5,189 112,212 4,106 88,792 9,367 202,561
Valero Energy Corp. 180 4,590 778 19,839 1,483 37,816 1,236 31,518 3,003 76,577
Vastar Resources Inc. 200 10,613 264 14,009 338 17,935 446 23,666 783 41,548
-------- ---------- ---------- ---------- ----------
491,299 3,372,767 8,538,896 7,250,376 16,119,372
OIL & GAS SERVICES
Percent of Net Assets 0.14% 0.26% 0.39% 0.48% 0.56%
Baker Hughes Inc. 99 2,562 1,890 48,904 5,488 142,002 4,506 116,593 13,721 355,031
BJ Services Co. + 300 17,119 1,068 60,943 2,041 116,465 1,896 108,191 4,310 245,939
Cooper Cameron Corp. + 200 11,050 416 22,984 1,140 62,985 1,061 58,620 2,385 131,771
Friede Goldman Halter Inc. + 155 814 148 777 250 1,312 231 1,213 389 2,042
Halliburton Co. 465 17,757 2,555 97,569 7,444 284,268 6,161 235,273 13,789 526,567
Input/Output Inc. + 500 3,031 440 2,668 976 5,917 725 4,395 1,072 6,499
Schlumberger Ltd. 461 34,056 3,455 255,238 9,341 690,066 7,813 577,185 17,513 1,293,773
Smith International Inc. + 214 13,415 616 38,616 1,337 83,813 1,095 68,643 2,696 169,006
Tidewater Inc. 265 7,503 848 24,009 1,724 48,811 1,426 40,374 3,484 98,641
Varco International Inc. + 584 6,461 440 4,868 1,019 11,273 846 9,359 1,878 20,775
Weatherford International Inc. + 380 17,100 1,122 50,490 2,120 95,400 2,113 95,085 4,267 192,015
-------- ---------- ---------- ---------- ----------
130,868 607,066 1,542,312 1,314,931 3,042,059
PACKAGING & CONTAINERS
Percent of Net Assets 0.04% 0.05% 0.07% 0.09% 0.10%
American National Can Group Inc. 0 -- 100 1,000 0 -- 0 -- 0 --
Ball Corp. 44 1,185 281 7,569 522 14,061 518 13,954 529 14,250
Bemis Co. 42 1,250 428 12,733 750 22,312 762 22,670 1,459 43,405
Crown Cork & Seal Co. Inc. 65 910 714 9,996 2,099 29,386 1,710 23,940 3,697 51,758
Longview Fibre Co. 554 7,548 475 6,472 780 10,627 513 6,990 1,275 17,372
Owens-Illinois Inc. + 136 1,879 1,098 15,166 2,591 35,788 2,291 31,644 4,690 64,781
Pactiv Corp. + 8 67 1,065 8,853 2,903 24,131 2,482 20,632 4,872 40,499
Sealed Air Corp. + 177 8,795 405 20,123 912 45,315 829 41,191 2,268 112,691
Smurfit-Stone Container Corp. + 486 6,622 804 10,955 3,337 45,467 2,712 36,951 6,314 86,028
Sonoco Products Co. 426 7,854 1,012 18,659 1,823 33,612 2,018 37,207 5,617 103,563
-------- ---------- ---------- ---------- ----------
36,110 111,526 260,699 235,179 534,347
</TABLE>
44
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
PHARMACEUTICALS
Percent of Net Assets 0.53% 1.73% 2.89% 3.46% 4.52%
Abbott Laboratories 783 $ 25,643 6,834 $ 223,814 22,436 $ 734,779 18,059 $ 591,432 48,487 $ 1,587,949
Alza Corp. + 87 3,192 464 17,023 1,688 61,929 1,231 45,162 2,911 106,797
American Home Products Corp. 595 25,883 8,193 356,396 22,328 971,268 18,690 813,015 41,691 1,813,559
Amerisource Health Corp. "A" + 0 -- 100 1,456 300 4,369 200 2,913 400 5,825
Bergen Brunswig Corp. "A" 559 2,760 1,292 6,379 2,335 11,528 2,728 13,470 5,886 29,062
Bristol-Myers Squibb Co. 1,058 60,108 9,508 540,173 29,304 1,664,834 24,020 1,364,636 63,382 3,600,890
Cardinal Health Inc. 311 12,829 2,022 83,408 4,983 205,549 3,954 163,103 10,757 443,726
Dentsply International Inc. 200 5,125 516 13,223 952 24,395 971 24,882 2,396 61,398
Dura Pharmaceuticals Inc. + 0 -- 440 6,105 977 13,556 714 9,907 1,602 22,228
Forest Laboratories Inc. "A" + 264 18,035 639 43,652 1,255 85,732 1,225 83,683 4,004 273,523
Genzyme Molecular Oncology + 35 917 96 2,562 179 4,777 171 4,564 252 6,725
Gilead Sciences Inc. + 0 -- 0 -- 0 -- 0 -- 100 7,650
ICN Pharmaceuticals Inc. 300 5,963 1,073 21,326 1,907 37,902 1,939 38,538 3,963 78,765
Interneuron Pharmaceuticals
Inc. + 0 -- 352 1,430 0 -- 636 2,584 895 3,636
IVAX Corporation + 1,695 38,561 1,487 33,818 3,054 69,479 2,630 59,821 5,444 123,840
Lilly (Eli) and Company 494 29,362 5,121 304,379 15,998 950,881 12,942 769,240 34,630 2,058,321
MedImmune Inc. + 0 -- 328 65,108 400 79,350 100 19,850 1,200 238,050
Merck & Co. Inc. 1,236 76,091 11,452 705,014 34,630 2,131,909 28,450 1,751,453 74,872 4,609,308
Mylan Laboratories Inc. 603 13,869 1,282 29,486 2,348 54,004 2,156 49,588 6,529 150,167
Omnicare Inc. 300 2,756 1,044 9,592 1,765 16,216 2,043 18,770 4,228 38,845
Perrigo Co. + 812 5,963 484 3,554 1,197 8,791 852 6,257 1,684 12,367
Pfizer Inc. 2,445 78,546 18,822 604,657 57,285 1,840,281 47,039 1,511,128 123,790 3,976,754
Pharmacia & Upjohn Inc. 407 19,383 3,110 148,114 8,759 417,147 7,359 350,472 16,353 778,812
Rexall Sundown Inc. + 100 1,494 628 9,420 1,164 17,460 893 13,395 2,143 32,145
Schering-Plough Corp. 761 26,540 6,988 243,707 21,486 749,324 17,163 598,560 46,386 1,617,712
Sepracor Inc. + 0 -- 704 71,368 200 20,275 1,272 128,949 400 40,550
Sybron International Corp. + 400 11,200 1,044 29,232 1,841 51,548 2,389 66,892 5,599 156,772
Warner-Lambert Co. 257 21,990 4,012 343,277 12,656 1,082,879 10,209 873,508 27,312 2,336,883
Watson Pharmaceutical Inc. + 190 7,600 970 38,800 1,950 78,000 1,399 55,960 4,285 171,400
-------- ---------- ----------- ---------- -----------
493,810 3,956,473 11,388,162 9,431,732 24,383,659
PIPELINES
Percent of Net Assets 0.04% 0.23% 0.36% 0.43% 0.48%
Columbia Energy Group 142 8,349 542 31,949 1,354 79,886 1,055 62,245 2,386 140,774
EL Paso Energy Corp 122 4,522 1,206 44,697 3,836 142,172 3,124 115,783 6,986 258,919
Enron Corp. 176 12,144 4,476 308,844 12,250 845,250 10,222 705,318 22,800 1,573,200
National Fuel Gas Co. 0 -- 0 -- 510 20,878 0 -- 0 --
Questar Corp. 254 3,540 938 13,073 1,958 27,290 1,657 23,094 3,963 55,234
Williams Companies Inc. 250 10,453 2,908 121,591 7,384 308,743 6,174 258,150 13,602 568,734
-------- ---------- ----------- ---------- -----------
39,008 520,154 1,424,219 1,164,590 2,596,861
REAL ESTATE
Percent of Net Assets 0.01% 0.01% 0.01% 0.01% 0.02%
Castle & Cooke Inc. + 215 2,889 120 1,613 294 3,951 198 2,661 301 4,045
Catellus Development Corp. + 200 2,463 868 10,687 1,941 23,899 1,675 20,623 4,098 50,457
Echelon International Corp. + 68 2,282 47 1,577 84 2,819 62 2,081 57 1,913
HomeFed Corporation + 158 92 475 276 871 505 871 505 1,822 1,057
St. Joe Company (The) 200 4,838 152 3,677 601 14,537 514 12,432 1,502 36,330
Vornado Operating Inc. + 20 223 44 490 90 1,001 180 2,003 159 1,769
-------- ---------- ----------- ---------- -----------
12,787 18,320 46,712 40,305 95,571
REAL ESTATE INVESTMENT TRUSTS
Percent of Net Assets 0.16% 0.25% 0.27% 0.39% 0.43%
AMB Property Corp. 100 2,019 980 19,784 363 7,328 368 7,429 607 12,254
Apartment Investment &
Management Co. "A" 0 -- 516 19,092 1,052 38,924 971 35,927 400 14,800
Archstone Communities Trust 500 9,781 956 18,702 1,753 34,293 2,568 50,237 6,041 118,177
Arden Realty Inc. 100 2,081 892 18,565 1,502 31,260 1,239 25,787 3,026 62,979
AvalonBay Communities Inc. 0 -- 692 23,355 1,490 50,287 1,329 44,854 500 16,875
Boston Properties Inc. 0 -- 428 12,974 852 25,826 971 29,433 2,320 70,325
Camden Property Trust 0 -- 328 8,795 200 5,363 100 2,681 200 5,363
Capstead Mortgage Corp. 0 -- 102 427 233 976 211 884 443 1,855
CarrAmerica Realty Corp. 100 2,125 240 5,100 1,202 25,543 1,139 24,204 2,826 60,053
Cornerstone Properties 300 5,063 1,420 23,963 2,654 44,786 2,500 42,188 5,523 93,201
Crescent Real Estate
Equities Co. 500 8,531 1,132 19,315 1,928 32,897 2,568 43,817 6,141 104,781
Duke-Weeks Realty Corp. 200 3,675 1,156 21,242 2,128 39,102 1,975 36,291 4,186 76,918
Equity Office Properties Trust 900 21,544 2,471 59,150 4,815 115,259 4,854 116,193 11,435 273,725
Equity Residential Properties
Trust 400 15,975 1,132 45,209 2,391 95,491 2,032 81,153 4,693 187,427
Federal Realty Investment Trust 0 -- 0 -- 0 -- 0 -- 353 6,795
FelCor Lodging Trust Inc. 200 3,425 892 15,276 1,690 28,941 1,429 24,472 3,203 54,851
Franchise Finance Corporation
of America 0 -- 88 1,980 300 6,750 100 2,250 200 4,500
General Growth Properties Inc. 0 -- 0 -- 300 8,681 200 5,788 488 14,122
Health Care Property
Investors Inc. 300 7,463 264 6,567 351 8,731 446 11,094 718 17,860
Highwoods Properties Inc. 100 2,094 792 16,583 1,590 33,291 1,418 29,689 3,291 68,905
Hospitality Properties Trust 0 -- 100 1,938 300 5,813 200 3,875 400 7,750
Host Marriott Corp. 887 7,872 1,808 16,046 3,439 30,521 4,558 40,452 10,596 94,040
HRPT Properties Trust 500 4,000 1,396 11,168 3,619 28,952 3,293 26,344 7,489 59,912
</TABLE>
45
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
Kimco Realty Corp. 200 6,888 284 $ 9,780 645 $ 22,212 1,150 $ 39,603 2,473 $ 85,164
Liberty Property Trust 100 2,269 792 17,969 300 6,806 200 4,538 500 11,344
Mack-Cali Realty Corp. 100 2,375 692 16,435 1,402 33,298 1,329 31,564 3,015 71,606
Meditrust Corp. 402 1,131 926 2,604 2,786 7,836 2,329 6,550 5,701 16,034
New Plan Excel Realty Trust 300 4,181 692 9,645 1,590 22,161 1,429 19,917 2,915 40,628
Plum Creek Timber Co. Inc. 0 -- 0 -- 100 2,225 100 2,225 200 4,450
Post Properties Inc. 0 -- 240 9,030 200 7,525 100 3,763 300 11,288
Prison Realty Trust Inc. 162 830 724 3,711 1,587 8,133 1,440 7,380 3,500 17,938
Prologis Trust 100 1,806 200 3,613 300 5,419 300 5,419 600 10,838
Public Storage Inc. 300 6,619 892 19,680 1,327 29,277 2,064 45,537 4,363 96,259
Rouse Co. 200 4,375 880 19,250 1,678 36,706 1,518 33,206 3,480 76,125
Senior Housing Properties
Trust 50 431 140 1,204 251 2,165 319 2,754 708 6,107
Simon Property Group Inc. 200 4,700 856 20,116 2,028 47,658 1,775 41,713 4,175 98,113
Spieker Properties Inc. 100 4,013 604 24,236 1,215 48,752 1,239 49,715 2,938 117,887
United Dominion Realty Trust 400 4,000 1,508 15,080 2,830 28,300 2,689 26,890 5,988 59,880
Ventas Inc. + 500 1,688 792 2,673 1,590 5,366 1,511 5,100 3,280 11,070
Vornado Realty Trust 200 6,113 780 23,839 1,578 48,228 1,507 46,058 3,568 109,047
Weingarten Realty Investors 200 7,500 176 6,600 351 13,163 357 13,388 895 33,562
Westfield America Inc. 0 -- 76 1,074 151 2,133 168 2,373 607 8,574
----------- ----------- ----------- ----------- ----------
54,567 571,770 1,076,378 1,072,735 2,313,382
RETAIL
Percent of Net Assets 0.76% 1.74% 2.84% 3.41% 4.28%
Abercrombie & Fitch Co. + 112 1,645 1,084 15,921 2,478 36,396 2,234 32,812 700 10,281
Amazon.com Inc. + 400 27,500 956 65,845 1,978 136,235 1,308 90,089 4,710 324,401
American Eagle Outfitters + 0 -- 0 -- 100 2,550 0 -- 100 2,550
AnnTaylor Stores Corp. + 247 4,708 172 3,279 308 5,871 226 4,308 209 3,984
AutoNation Inc. + 1,600 12,100 4,216 31,884 8,089 61,173 7,222 54,616 20,198 152,747
AutoZone Inc. + 126 3,095 951 23,359 2,571 63,150 2,273 55,831 4,683 115,026
Barnes & Noble Inc. + 200 3,450 516 8,901 1,227 21,166 1,061 18,302 2,573 44,384
Bed Bath & Beyond Inc. + 390 11,066 1,200 34,050 2,329 66,085 1,982 56,239 4,203 119,260
Best Buy Co. Inc. + 680 36,975 1,200 65,250 2,664 144,855 2,078 112,991 7,166 389,651
BJ's Wholesale Club Inc. + 630 19,530 780 24,180 772 23,932 656 20,336 500 15,500
Blockbuster Inc. 0 -- 100 1,369 0 -- 0 -- 0 --
Bob Evans Farms Inc. 468 6,347 317 4,299 659 8,938 421 5,710 1,204 16,329
Boise Cascade Office
Products Corp. + 0 -- 88 1,309 801 11,915 179 2,663 353 5,251
Borders Group Inc. + 200 2,463 880 10,835 1,865 22,963 1,696 20,882 3,445 42,417
Boston Chicken Inc. + 600 72 500 60 700 84 700 84 1,100 132
Brinker International Inc. + 856 18,618 871 18,944 1,740 37,845 945 20,554 2,170 47,198
Brown Shoe Company Inc. 31 326 158 1,659 296 3,108 197 2,069 224 2,352
CBRL Group Inc. 149 1,378 901 8,334 1,600 14,800 1,392 12,876 3,213 29,720
CDW Computer Centers Inc. + 0 -- 76 4,171 150 8,231 358 19,645 306 16,792
Charming Shoppes + 59 354 0 -- 2,105 12,630 1,546 9,276 3,271 19,626
Circuit City Stores Inc. 244 9,852 1,338 54,022 3,336 134,691 3,016 121,771 6,140 247,903
CKE Restaurant Inc. 120 765 484 3,086 1,068 6,809 686 4,373 1,549 9,875
CompUSA Inc. + 400 4,000 1,332 13,320 2,391 23,910 2,243 22,430 4,916 49,160
Consolidated Stores
Corporation + 58 653 678 7,628 1,809 20,351 1,435 16,144 3,332 37,485
CVS Corp. 204 7,140 2,201 77,035 6,663 233,205 5,408 189,280 13,060 457,100
Darden Restaurants Inc. 90 1,187 684 9,020 2,239 29,527 1,911 25,201 4,413 58,196
Dave & Buster's Inc. + 0 -- 0 -- 90 579 0 -- 0 --
Dillards Inc. "A" 18 313 598 10,390 1,895 32,926 1,428 24,812 3,525 61,247
Dollar General Corp. 91 1,905 1,236 25,879 4,355 91,183 3,481 72,883 7,935 166,139
Dollar Tree Stores Inc. + 100 3,881 284 11,023 820 31,826 737 28,605 1,843 71,531
eBay Inc. + 0 -- 0 -- 100 14,338 0 -- 500 71,688
Edison Brothers Stores Inc.
Warrants (Expires 09/26/05) + 0 -- 0 -- 16 -- 0 -- 0 --
eToys Inc. + 0 -- 0 -- 0 -- 0 -- 100 1,406
Family Dollar Stores Inc. 460 7,993 1,607 27,922 3,417 59,370 3,007 52,247 6,833 118,723
Fastenal Co. 200 8,838 152 6,717 501 22,138 514 22,712 1,413 62,437
Federated Department
Stores Inc. + 179 6,567 1,403 51,473 3,476 127,526 3,042 111,603 6,361 233,369
Footstar Inc. + 46 1,136 216 5,333 457 11,282 341 8,418 678 16,738
Gap Inc. 408 19,712 3,928 189,772 12,446 601,297 10,106 488,246 26,560 1,283,180
Golden State Bancorp Inc. + 200 206 500 531 800 825 900 956 1,900 1,959
Hancock Fabrics Inc. 0 -- 0 -- 400 1,125 0 -- 0 --
Heilig-Meyers Co. 524 1,703 361 1,173 831 2,701 586 1,904 1,248 4,056
Home Depot Inc. 1,149 66,427 11,178 646,228 34,045 1,968,227 27,945 1,615,570 73,641 4,257,370
HomeBase Inc. + 365 935 0 -- 536 1,374 428 1,097 0 --
IKON Office Solutions Inc. 14 98 683 4,781 2,521 17,647 2,065 14,455 3,831 26,817
Intimate Brands Inc. 0 -- 0 -- 200 6,538 100 3,269 300 9,806
Kmart Corp. + 274 2,415 3,162 27,865 8,102 71,399 7,037 62,014 14,511 127,878
Kohls Corp. + 537 40,711 535 40,560 2,173 164,741 1,856 140,708 4,731 358,669
Lands' End Inc. + 0 -- 0 -- 479 15,897 0 -- 0 --
Limited Inc. 197 6,698 1,504 51,136 3,622 123,148 3,287 111,758 6,781 230,554
Linens 'N Things Inc. + 0 -- 0 -- 200 3,938 100 1,969 400 7,875
Lone Star Steakhouse &
Saloon Inc + 300 2,663 352 3,124 714 6,337 546 4,846 895 7,943
</TABLE>
46
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
Longs Drug Stores Inc. 66 $ 1,225 314 $ 5,829 569 $ 10,562 556 $ 10,321 876 $ 16,261
Lowe's Companies Inc. 304 14,478 2,240 106,680 6,423 305,895 5,339 254,270 11,933 568,309
Luby's Inc. 45 470 193 2,014 421 4,394 329 3,434 649 6,774
May Department Stores Co. 211 5,526 2,109 55,229 5,737 150,238 4,841 126,774 10,335 270,648
McDonald's Corp. 1,038 32,762 8,700 274,594 23,092 728,841 19,294 608,967 43,118 1,360,912
Michaels Stores Inc. + 0 -- 0 -- 0 -- 0 -- 177 4,801
MP3.com Inc. + 0 -- 0 -- 100 1,725 0 -- 100 1,725
Neiman-Marcus Group
Inc. "A" + 100 2,131 64 1,364 326 6,948 336 7,161 960 20,460
Neiman-Marcus Group
Inc. "B" + 0 -- 137 2,877 299 6,279 269 5,649 570 11,970
Nordstrom Inc. 214 4,561 790 16,837 2,451 52,237 2,071 44,138 4,712 100,425
NPC International Inc. + 0 -- 0 -- 328 2,706 253 2,087 0 --
Office Depot Inc. + 477 5,813 4,135 50,395 6,728 81,998 6,309 76,891 16,965 206,761
OfficeMax Inc. + 700 4,944 1,816 12,826 3,543 25,022 3,270 23,094 7,292 51,500
Outback Steakhouse Inc. + 100 2,613 692 18,079 1,215 31,742 1,239 32,369 2,982 77,905
Payless Shoesource Inc. + 217 8,572 162 6,399 802 31,679 796 31,442 2,135 84,333
Penney (J.C.) Company
Inc. 66 1,040 1,463 23,042 4,156 65,457 3,557 56,023 7,295 114,896
Pep Boys-Manny Moe &
Jack Inc. 0 -- 279 1,726 1,027 6,355 879 5,439 1,775 10,983
Petsmart Inc. + 1,200 3,975 1,144 3,790 2,028 6,718 1,528 5,062 2,950 9,772
Pier 1 Imports Inc. 550 4,813 1,552 13,580 2,730 23,888 2,689 23,529 5,899 51,616
Planet Hollywood
International Inc. + 0 -- 176 16 438 40 357 33 530 49
Priceline.com Inc. + 0 -- 0 -- 100 5,594 0 -- 100 5,594
Rite Aid Corp. 38 261 1,568 10,780 4,607 31,673 3,804 26,153 7,481 51,432
Ross Stores Inc. 400 5,800 756 10,962 2,430 35,235 2,200 31,900 5,222 75,719
Ruby Tuesday Inc. 384 6,504 176 2,981 563 9,536 355 6,013 784 13,279
Ryan's Family Steak
Houses Inc. + 119 1,138 454 4,341 987 9,438 706 6,751 1,018 9,735
Saks Inc. + 464 5,336 1,245 14,318 2,532 29,118 2,377 27,336 5,277 60,686
School Specialty Inc. + 0 -- 90 1,553 187 3,226 160 2,760 358 6,176
Sears, Roebuck and Co. 58 1,599 2,570 70,836 6,712 185,000 5,766 158,925 11,705 322,619
Service Merchandise Co. + 771 123 0 -- 1,428 228 1,091 175 0 --
7-Eleven Inc. + 1,800 4,669 1,232 3,196 2,379 6,171 1,707 4,428 4,110 10,661
Shoney's Inc. + 97 103 325 345 758 805 632 672 1,252 1,330
Sizzler International
Inc. + 254 794 0 -- 480 1,500 384 1,200 0 --
Staples Inc. + 511 13,797 2,547 68,769 7,776 209,952 6,350 171,450 14,287 385,749
Starbucks Corp. + 800 28,100 1,836 64,490 3,256 114,367 2,936 103,127 9,608 337,481
Sunglass Hut
International Inc. + 600 5,138 440 3,768 977 8,366 625 5,352 1,248 10,686
Systemax Inc. + 200 1,975 176 1,738 263 2,597 179 1,768 453 4,473
Talbots Inc. 200 7,238 176 6,369 0 -- 179 6,478 353 12,774
Tandy Corp. 222 8,450 960 36,540 2,814 107,108 2,604 99,115 5,406 205,766
Target Corporation 263 15,517 2,658 156,822 7,481 441,379 6,231 367,629 14,565 859,335
Tiffany & Co. 452 29,013 780 50,066 1,542 98,977 1,836 117,848 3,180 204,116
TJX Companies Inc. 76 1,211 1,556 24,799 4,893 77,982 3,844 61,264 9,047 144,187
Too Inc. + 0 3 216 5,184 517 12,408 449 10,776 911 21,864
Toys R Us Inc. + 71 879 1,611 19,936 4,250 52,594 3,817 47,235 7,983 98,790
Tricon Global Restaurants
Inc. + 71 1,890 520 13,845 1,845 49,123 1,572 41,855 4,272 113,742
US Office Products Co. + 0 -- 203 557 521 1,433 460 1,266 906 2,491
Value America Inc. + 100 413 100 413 0 -- 0 -- 100 413
Venator Group Inc. + 177 1,007 927 5,272 2,528 14,378 2,171 12,348 4,319 24,564
Walgreen Co. 300 7,744 4,658 120,235 14,114 364,318 11,342 292,765 30,620 790,379
Wal-Mart Stores Inc. 2,636 128,340 22,236 1,082,615 66,120 3,219,218 54,480 2,652,495 142,818 6,953,451
Webvan Group Inc. + 0 -- 0 -- 0 -- 0 -- 100 1,138
Wendy's International
Inc. 131 2,063 715 11,261 2,104 33,138 1,723 27,137 3,906 61,520
Williams-Sonoma Inc. + 0 -- 0 -- 200 6,188 100 3,094 442 13,674
--------- ----------- ------------- ----------- -----------
717,453 3,978,935 11,180,556 9,292,552 23,110,629
SEMICONDUCTORS
Percent of Net Assets 0.95% 2.04% 3.19% 3.87% 5.03%
Advanced Micro Devices
Inc. + 130 5,086 926 36,230 2,432 95,152 1,967 76,959 4,409 172,502
Alliance Semiconductor
Corp. + 0 -- 0 -- 0 -- 0 -- 221 5,518
Altera Corp. + 640 51,040 2,124 169,389 4,070 324,583 4,458 355,526 9,550 761,613
Amkor Technology Inc. + 0 -- 0 -- 0 -- 100 5,194 200 10,388
Applied Materials Inc. + 305 55,796 2,176 398,072 5,517 1,009,266 4,769 872,429 12,035 2,201,653
Applied Micro Circuits
Corp. + 0 -- 100 27,506 300 82,519 0 -- 900 247,556
Atmel Corp. + 1,124 55,638 2,346 116,127 5,200 257,400 4,800 237,600 11,222 555,489
Broadcom Corp. + 0 -- 200 39,475 800 157,900 200 39,475 1,800 355,275
Cirrus Logic Inc. + 634 13,195 686 14,277 1,411 29,366 1,052 21,895 1,434 29,845
Conexant Systems Inc. + 420 41,265 1,399 137,452 3,864 379,638 3,848 378,066 7,750 761,438
Cypress Semiconductor
Corp. + 800 36,500 739 33,717 1,296 59,130 1,371 62,552 3,300 150,563
Etec Systems Inc. + 0 -- 176 20,730 351 41,341 268 31,565 718 84,567
General Semiconductor
Inc. + 37 617 229 3,821 521 8,694 410 6,842 1,128 18,824
Intel Corp. 1,892 213,796 17,102 1,932,526 49,712 5,617,456 41,240 4,660,120 107,524 12,150,212
International Rectifier
Corp. + 500 20,938 440 18,425 877 36,724 625 26,172 1,072 44,890
KLA-Tencor Corp. + 188 14,652 1,002 78,093 3,058 238,333 2,470 192,506 5,546 432,241
Lam Research Corp. + 300 46,837 264 41,217 438 68,383 446 69,632 1,260 196,718
Lattice Semiconductor
Corp. + 200 14,050 704 49,456 1,228 86,267 1,250 87,813 2,674 187,849
LSI Logic Corp. + 236 15,119 1,788 114,544 5,004 320,569 4,172 267,269 9,360 599,625
MEMC Electronics
Materials Inc. + 300 5,231 264 4,604 351 6,121 357 6,225 807 14,072
Micron Technology Inc. + 145 14,219 1,642 161,019 4,561 447,263 3,760 368,715 8,472 830,786
</TABLE>
47
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
National Semiconductor
Corp. + 86 $ 6,461 1,142 $ 85,793 2,934 $ 220,417 2,379 $ 178,722 5,286 $ 397,111
Novellus Systems Inc. + 600 35,588 720 42,705 2,331 138,257 1,812 107,474 5,034 298,579
PMC - Sierra Inc. + 0 -- 600 115,838 1,400 270,288 600 115,838 3,400 656,413
QLogic Corp. + 0 -- 0 -- 400 62,400 0 -- 1,200 187,200
Rambus Inc. + 0 -- 88 26,543 163 49,165 179 53,991 242 72,993
SDL Inc. + 0 -- 100 41,000 200 82,000 100 41,000 600 246,000
Texas Instruments Inc. 700 116,550 4,344 723,276 1,902 1,981,683 10,290 1,713,285 25,644 4,269,726
Varian Semiconductor
Equipment Associates Inc. + 177 10,255 431 25,052 820 47,663 795 46,209 1,659 96,429
Xilinx Inc. + 1,548 123,453 2,728 217,558 5,348 426,503 6,342 505,775 14,128 1,126,708
-------- ---------- ----------- ----------- -----------
896,286 4,674,445 12,544,481 10,528,849 27,162,783
SOFTWARE
Percent of Net Assets 1.70% 3.15% 4.86% 5.74% 7.72%
Acxiom Corp. + 100 2,888 200 5,775 300 8,663 200 5,775 500 14,438
Adobe Systems Inc. 214 21,828 1,056 107,712 1,766 180,132 1,644 167,688 3,858 393,516
Akamai Technologies Inc. + 0 -- 100 26,125 200 52,250 100 26,125 700 182,875
America Online Inc. + 10,090 595,310 17,310 1,021,290 3,156 1,956,204 29,476 1,739,084 71,514 4,219,326
American Management
Systems + 0 -- 0 -- 200 6,363 100 3,181 200 6,363
Ariba Inc. + 0 -- 200 52,900 700 185,150 400 105,800 1,700 449,650
At Home Corp. "A" + 100 3,431 628 21,548 2,152 73,841 972 33,352 5,396 185,150
Autodesk Inc. 76 3,396 306 13,674 951 42,498 749 33,471 1,737 77,622
Automatic Data Processing 158 6,883 2,706 117,880 8,828 384,570 6,943 302,454 19,126 833,176
BEA Systems Inc. + 0 -- 176 22,275 526 66,572 358 45,309 706 89,353
BMC Software Inc. + 929 42,734 715 32,890 3,229 148,534 2,239 102,994 6,960 320,160
BroadVision Inc. + 0 -- 100 25,256 500 126,281 100 25,256 1,200 303,075
Cadence Design Systems
Inc. + 964 19,220 1,909 38,061 3,825 76,261 3,452 68,824 10,984 218,994
CareInsite Inc. + 0 -- 0 -- 100 6,800 100 6,800 200 13,600
ChoicePoint Inc. + 282 10,628 246 9,271 638 24,045 476 17,939 854 32,185
Citrix Systems Inc. + 400 42,175 1,364 143,817 3,100 326,856 3,848 405,724 8,144 858,683
CMGI Inc. + 0 -- 900 116,606 2,200 284,900 1,500 194,344 5,100 660,450
CNET Inc. + 0 -- 0 -- 100 6,688 100 6,688 200 13,375
Computer Associates
International Inc. 214 13,763 2,407 154,800 7,846 504,596 6,228 400,538 16,900 1,086,881
Compuware Corp. + 1,760 38,940 2,500 55,313 4,820 106,643 4,166 92,173 10,222 226,162
Covad Communications
Group Inc. + 0 -- 0 -- 100 9,025 0 -- 200 18,050
CSG Systems International
Inc. + 0 -- 0 -- 100 5,138 100 5,138 100 5,138
DoubleClick Inc. + 0 -- 100 8,881 400 35,525 0 -- 1,100 97,694
EarthLink Inc. + 0 -- 0 -- 300 7,463 200 4,975 561 13,942
Edwards (J.D.) & Co. + 100 4,050 252 10,238 714 29,006 525 21,328 1,513 61,466
Electronic Arts Inc. + 300 30,000 516 51,600 1,502 150,200 1,329 132,900 3,015 301,500
Exodus Communications Inc. + 0 -- 700 99,663 1,800 256,275 1,200 170,850 4,100 583,738
First Data Corp. 243 10,935 2,715 122,175 7,353 330,885 6,139 276,255 13,214 594,630
Fiserv Inc. + 487 13,271 1,164 31,719 2,183 59,480 1,983 54,037 6,284 171,239
GO.com (Walt Disney) + 0 -- 0 -- 115 2,537 115 2,537 330 7,281
Healtheon/WebMD Corp. + 0 -- 0 -- 100 5,531 100 5,531 100 5,531
Homestore.com Inc. + 0 -- 0 -- 0 -- 0 -- 100 6,831
i2 Technologies Inc. + 0 -- 152 24,852 526 86,001 336 54,936 1,436 234,786
IMS Health Inc. 0 -- 1,454 29,262 4,745 95,493 3,730 75,066 8,865 178,408
Information Resources Inc. + 0 -- 0 -- 353 2,758 0 -- 0 --
Informix Corp. + 1,190 19,040 861 13,776 2,733 43,728 1,709 27,344 4,775 76,400
Infospace.com Inc. + 0 -- 400 86,800 1,000 217,000 600 130,200 2,400 520,800
Inktomi Corp. + 0 -- 0 -- 200 27,425 0 -- 600 82,275
Internet Capital Group LLC + 0 -- 600 63,450 1,500 158,625 900 95,175 3,400 359,550
Intuit Inc. + 600 31,500 984 51,660 2,467 129,518 1,912 100,380 7,583 398,108
iVillage Inc. + 0 -- 0 -- 100 1,875 0 -- 100 1,875
Keane Inc. + 100 2,400 692 16,608 1,427 34,248 1,696 40,704 3,733 89,592
Legato Systems Inc. + 0 -- 480 17,100 1,578 56,216 1,308 46,598 600 21,375
LHS Group Inc. + 0 -- 76 3,439 251 11,358 157 7,104 607 27,467
Lycos Inc. + 0 -- 100 5,963 300 17,888 200 11,925 900 53,663
Macromedia Inc. + 400 34,575 352 30,426 614 53,073 446 38,551 995 86,005
Mercury Interactive Corp. + 0 -- 0 -- 200 19,275 0 -- 600 57,825
Microsoft Corp. + 2,726 243,636 26,484 2,367,008 6,870 6,870,256 63,786 5,700,874 166,132 14,848,048
Momentum Business
Applications Inc. + 7 52 21 155 62 457 66 487 48 354
National Data Corp. 200 6,200 240 7,440 677 20,987 693 21,483 1,766 54,746
Network Associates Inc. + 525 15,980 1,374 41,821 2,367 72,046 2,232 67,937 7,079 215,467
Network Solutions Inc. + 0 -- 0 -- 0 -- 0 -- 200 64,488
NetZero Inc. + 0 -- 0 -- 0 -- 0 -- 100 2,350
New Era of Networks Inc. + 0 -- 0 -- 100 9,163 100 9,163 100 9,163
NorthPoint Communications
Group Inc + 0 -- 0 -- 100 2,269 100 2,269 100 2,269
Novell Inc. + 125 4,133 2,196 72,605 5,870 194,077 5,072 167,693 10,308 340,808
Objective Systems
Integrator Inc. + 0 -- 88 1,694 0 -- 0 -- 277 5,332
Oracle Corp. + 1,442 107,069 14,224 1,056,132 2,256 3,137,508 34,898 2,591,177 91,260 6,776,055
Parametric Technology
Corp. + 20 606 1,236 37,466 4,033 122,250 3,339 101,213 7,873 238,650
PeopleSoft Inc. + 265 5,482 1,045 21,618 3,260 67,441 2,635 54,512 7,030 145,433
Peregrine Systems Inc. + 0 -- 0 -- 0 -- 0 -- 200 10,925
Per-Se Technologies Inc. + 266 2,095 264 2,079 354 2,788 390 3,071 655 5,158
</TABLE>
48
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
Phone.com Inc. + 0 $ -- 0 $ -- 0 $ -- 0 $ -- 200 $ 27,925
Pixar Inc. + 0 -- 88 3,080 63 2,205 268 9,380 330 11,550
Policy Management
Systems Corp. + 396 3,515 99 879 431 3,825 261 2,316 866 7,686
Prodigy Communications
Corp. + 0 -- 0 -- 0 -- 0 -- 100 2,006
PSINET Inc. + 0 -- 0 -- 600 27,750 200 9,275 1,400 64,750
Rational Software Corp. + 100 7,113 792 56,331 1,678 119,348 1,429 101,638 2,726 193,887
RealNetworks Inc. + 0 -- 0 -- 400 28,125 0 -- 1,200 84,375
Reynolds & Reynolds
Co. "A" 146 4,033 910 25,139 1,688 46,631 1,575 43,509 3,468 95,804
Rhythms Netconnections
Inc. + 0 -- 100 3,569 400 14,275 200 7,138 400 14,275
Shared Medical Systems
Corp. 42 1,635 150 5,841 446 17,366 374 14,563 624 24,297
Siebel Systems Inc. + 400 55,475 1,212 168,089 2,368 328,412 2,132 295,682 5,252 728,387
Sterling Commerce Inc. + 277 12,136 1,089 47,712 2,076 90,955 2,061 90,298 4,052 177,528
Sterling Software Inc. + 200 7,175 880 31,570 1,865 66,907 1,707 61,239 3,456 123,984
Structural Dynamics
Research Corp. + 303 4,318 0 -- 380 5,415 285 4,061 0 --
Sybase Inc. + 700 17,544 616 15,439 1,327 33,258 1,171 29,348 2,408 60,351
Symantec Corp. + 278 19,860 892 63,722 1,822 130,159 1,594 113,871 3,603 257,389
Total System Services
Inc. 250 3,969 384 6,096 764 12,129 693 11,001 2,243 35,608
USinternetworking Inc. + 0 -- 0 -- 0 -- 0 -- 150 10,013
Verio Inc. + 0 -- 0 -- 100 7,506 100 7,506 200 15,013
Vignette Corp. + 0 -- 0 -- 100 23,050 0 -- 400 92,200
Yahoo! Inc. + 800 127,750 3,418 545,812 7,808 1,246,840 6,344 1,013,058 16,792 2,681,473
ZDNet Inc. + 0 -- 0 -- 100 3,206 100 3,206 100 3,206
---------- ---------- ----------- ----------- -----------
1,596,743 7,214,102 19,119,997 15,622,021 41,671,156
TELECOMMUNICATION
EQUIPMENT
Percent of Net Assets 0.73% 1.49% 2.16% 2.63% 3.35%
ADC Telecommunications
Inc. + 1,124 50,440 2,492 111,829 4,626 207,592 4,172 187,219 13,560 608,505
ADTRAN Inc. + 100 7,356 176 12,947 175 12,873 268 19,715 718 52,818
Advanced Fibre
Communications Inc. + 300 20,438 616 41,965 1,327 90,402 1,261 85,906 2,673 182,098
American Tower Corp. + 100 4,925 956 47,083 2,028 99,879 1,775 87,419 900 44,325
Andrew Corp. + 90 2,228 417 10,321 1,494 36,977 990 24,503 2,413 59,722
ANTEC Corp. + 0 -- 0 -- 0 -- 0 -- 100 5,294
Ciena Corp. + 100 15,981 528 84,381 1,140 182,186 771 123,215 2,861 457,224
Commscope Inc. + 50 1,947 304 11,837 794 30,916 646 25,154 1,671 65,065
Comverse Technology Inc. + 340 66,938 560 110,250 1,063 209,278 1,376 270,900 3,364 662,288
E-Tek Dynamics Inc. + 0 -- 100 27,325 300 81,881 100 27,325 300 81,881
Glenayre Technologies
Inc. + 650 12,919 572 11,369 1,130 22,459 814 16,178 1,459 28,998
Harmonic Inc. + 0 -- 0 -- 0 -- 0 -- 100 13,694
Harris Corp. 104 3,315 607 19,348 1,320 42,075 1,063 33,883 2,112 67,320
JDS Uniphase Corp. + 0 -- 1,160 305,950 2,100 553,875 1,600 422,000 4,652 1,226,965
Lucent Technologies Inc. 1,673 99,544 15,570 926,415 46,476 2,765,322 38,327 2,280,457 100,447 5,976,597
Metromedia Fiber
Network Inc. + 0 -- 300 21,567 900 64,702 100 7,189 2,500 179,727
Mobilemedia Corp. + 300 -- 200 -- 400 -- 300 -- 700 1
Motorola Inc. 576 98,208 4,747 809,364 12,099 2,062,880 10,270 1,751,035 22,726 3,874,783
Paging Network Inc. + 500 1,453 616 1,790 1,415 4,112 1,261 3,665 2,861 8,315
PairGain Technologies
Inc. + 300 5,363 616 11,011 1,239 22,147 1,171 20,932 2,761 49,353
Picturetel Corp. + 400 3,025 352 2,662 714 5,400 546 4,129 807 6,103
QUALCOMM Inc. + 1,950 277,753 4,686 667,462 10,446 1,487,902 9,904 1,410,701 22,920 3,264,668
RF Micro Devices Inc. + 0 -- 0 -- 300 41,494 300 41,494 700 96,819
Scientific-Atlanta Inc. 75 7,702 549 56,375 1,309 134,418 1,035 106,282 2,394 245,834
Sycamore Networks Inc. + 0 -- 300 44,400 600 88,800 0 -- 1,500 222,000
Tellabs Inc. + 174 8,352 1,652 79,296 5,644 270,912 4,502 216,096 12,216 586,368
Williams Communications
Group Inc. + 0 -- 0 -- 0 -- 0 -- 100 4,450
----------- ----------- ------------- ----------- -----------
687,887 3,414,947 8,518,482 7,165,397 18,071,215
TELECOMMUNICATIONS
Percent of Net Assets 0.35% 0.66% 0.94% 1.13% 1.58%
Allegiance Telecom Inc. + 0 -- 0 -- 150 14,831 0 -- 600 59,325
Aspect Communications
Corp. + 0 -- 540 34,796 100 6,444 0 -- 1,260 81,191
Broadwing Inc. 0 -- 459 13,627 1,541 45,748 452 13,419 4,192 124,450
Comsat Corp. 301 5,061 443 7,448 1,020 17,149 916 15,400 2,169 36,466
Cox Communications
Inc. "A" + 871 39,576 1,530 69,519 2,375 107,914 2,405 109,277 7,308 332,057
Crown Castle
International Corp. + 0 -- 0 -- 0 -- 100 3,225 400 12,900
Echostar Communications
Corp. + 0 -- 0 -- 100 11,400 100 11,400 600 68,400
Global Crossing Ltd. + 202 9,418 4,956 231,074 12,956 604,074 10,948 510,451 24,371 1,136,298
Global Telesystems Group
Inc. + 400 9,950 880 22,000 1,854 46,350 1,986 49,650 4,532 113,300
Hughes Electronics Corp. + 500 60,250 1,132 136,406 2,028 244,374 1,875 225,938 5,776 696,008
ICG Communications Inc. + 200 6,238 528 16,566 1,152 36,144 982 30,810 2,231 69,998
Leap Wireless
International Inc. + 100 8,769 198 17,362 394 34,549 379 33,234 873 76,551
Level 3 Communications
Inc. + 100 11,388 1,400 159,425 3,400 386,963 2,500 284,688 7,700 876,356
Loral Space &
Communications Ltd. + 1,042 15,695 2,626 39,554 5,119 77,105 4,757 71,652 10,620 159,964
McLeodUSA Inc. "A" + 400 35,200 880 77,440 1,854 163,152 1,808 159,104 4,032 354,816
Nextel Communications
Inc. "A" + 178 24,264 1,555 211,966 5,343 728,318 4,291 584,917 11,500 1,567,594
NTL Inc. + 0 -- 825 75,488 1,505 137,730 1,520 139,109 2,876 263,108
Omnipoint Corp. + 200 23,555 264 31,093 351 41,340 357 42,047 630 74,199
PanAmSat Corp. + 100 4,881 176 8,591 163 7,956 268 13,082 418 20,404
Qwest Communications
International Inc. + 1,400 64,838 3,192 148,029 5,406 250,703 4,943 229,246 15,172 703,602
</TABLE>
49
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
RCN Corp. + 0 $ -- 0 $ -- 0 $ -- 0 $ -- 100 $ 5,988
Sprint Corp. (PCS Group) + 234 12,110 3,562 184,334 12,380 640,665 9,918 513,257 27,010 1,397,768
Talk.com Inc. + 100 1,688 540 9,113 1,077 18,174 993 16,757 2,155 36,366
Voicestream Wireless Corp. + 0 -- 188 25,016 600 79,838 100 13,306 1,465 194,937
West Teleservices Corp. + 0 -- 0 -- 0 -- 0 -- 177 3,496
Western Wireless Corp. "A" + 0 -- 88 4,268 0 -- 0 -- 365 17,703
Winstar Communications Inc. + 0 -- 0 -- 100 7,738 100 7,738 300 23,213
--------- ---------- ----------- ----------- -----------
332,881 1,523,115 3,708,659 3,077,707 8,506,458
TELEPHONE
Percent of Net Assets 0.58% 1.95% 3.14% 3.77% 4.46%
Alltel Corp. 149 8,642 1,832 106,256 5,309 307,922 4,435 257,230 9,824 569,792
AT&T Corp. 2,519 124,533 20,787 1,027,657 54,703 2,704,380 45,939 2,271,109 102,413 5,063,043
Bell Atlantic Corp. 1,224 59,900 9,835 481,300 26,532 1,298,410 22,268 1,089,740 49,624 2,428,475
BellSouth Corporation 1,560 63,570 11,899 484,884 32,151 1,310,153 26,965 1,098,824 60,128 2,450,216
CenturyTel Inc. 0 -- 620 20,848 2,303 77,438 1,800 60,525 4,090 137,526
GTE Corp. 836 49,324 6,093 359,487 16,557 976,863 13,929 821,811 31,007 1,829,413
Intermedia Communications Inc. + 0 -- 100 6,331 100 6,331 0 -- 188 11,903
MCI Worldcom Inc. + 2,271 101,343 18,200 812,175 48,892 2,181,806 41,351 1,845,288 97,844 4,366,289
NEXTLINK Communications Inc. + 0 -- 100 11,019 400 44,075 100 11,019 1,200 132,225
SBC Communications Inc. 1,769 67,222 16,441 624,758 50,503 1,919,114 41,414 1,573,732 109,040 4,143,520
Sprint Corp. (FON Group) 660 40,260 5,446 332,206 14,900 908,900 12,458 759,938 27,772 1,694,092
Telephone & Data Systems Inc. 0 -- 0 -- 825 87,038 0 -- 800 84,400
US West Inc. 459 33,335 2,843 206,473 7,224 524,643 6,520 473,515 15,830 1,149,654
--------- ---------- ----------- ----------- -----------
548,129 4,473,394 12,347,073 10,262,731 24,060,548
TEXTILES
Percent of Net Assets 0.03% 0.03% 0.03% 0.05% 0.05%
Cintas Corp. 320 12,780 780 31,151 1,250 49,922 1,634 65,258 3,639 145,333
Mohawk Industries Inc. + 0 -- 0 -- 200 4,438 100 2,219 488 10,828
Shaw Industries Inc. 1,060 13,449 1,422 18,042 2,818 35,753 2,572 32,632 6,329 80,299
Springs Industries Inc. "A" 33 1,169 185 6,556 293 10,383 324 11,482 560 19,845
Westpoint Stevens Inc. 100 1,663 328 5,453 1,152 19,152 971 16,143 2,320 38,570
--------- ---------- ----------- ----------- -----------
29,061 61,202 119,648 127,734 294,875
TOBACCO
Percent of Net Assets 0.05% 0.15% 0.23% 0.28% 0.34%
Philip Morris Companies Inc. 2,031 40,747 14,867 298,269 40,314 808,800 33,788 677,872 80,137 1,607,749
R.J. Reynolds Tobacco Holdings
Inc. 223 4,014 917 16,506 2,248 40,464 1,922 34,596 5,537 99,666
Universal Corporation 181 2,964 528 8,646 911 14,918 887 14,525 2,112 34,584
UST Inc. 72 1,391 508 9,811 2,813 54,326 2,165 41,812 5,181 100,058
--------- ---------- ----------- ----------- -----------
49,116 333,232 918,508 768,805 1,842,057
TOYS / GAMES / HOBBIES
Percent of Net Assets 0.01% 0.02% 0.03% 0.04% 0.04%
Department 56 Inc. + 200 2,825 176 2,486 263 3,715 179 2,528 630 8,899
Hasbro Inc. 67 1,055 1,225 19,294 3,232 50,904 2,803 44,147 5,691 89,633
Marvel Enterprises Inc. "A"
Warrants (Expires 10/02/01) + 0 -- 5 3 39 20 5 3 16 8
Marvel Enterprises Inc. "C"
Warrants (Expires 10/02/01) + 0 -- 9 3 66 21 9 3 28 9
Marvel Entertainment Group + 0 -- 200 -- 1,400 -- 200 -- 600 --
Mattel Inc. 303 2,916 2,211 21,281 6,856 65,989 5,286 50,878 12,203 117,454
Topps Co. (The) + 512 3,840 0 -- 633 4,748 470 3,525 0 --
--------- ---------- ----------- ----------- -----------
10,636 43,067 125,397 101,084 216,003
TRANSPORTATION
Percent of Net Assets 0.07% 0.18% 0.25% 0.31% 0.38%
Airborne Freight Corp. 100 1,850 504 9,324 1,315 24,328 1,150 21,275 2,750 50,875
Alexander & Baldwin Inc. 204 4,176 607 12,425 1,164 23,826 990 20,264 2,490 50,967
Burlington Northern Santa Fe
Corp. 168 3,308 2,839 55,893 7,877 155,078 6,765 133,186 14,072 277,043
CNF Transportation Inc. 162 5,194 470 15,069 1,136 36,423 1,126 36,102 2,518 80,733
Consolidated Freightways Corp. + 31 205 159 1,053 355 2,352 255 1,689 603 3,995
CSX Corp. 97 2,152 1,413 31,351 3,463 76,835 3,098 68,737 6,432 142,710
Expeditors International
Washington Inc. 0 -- 0 -- 0 -- 0 -- 200 7,550
FedEx Corporation + 314 10,970 1,804 63,027 5,036 175,945 4,118 143,873 9,156 319,888
Fritz Companies Inc. + 200 1,675 176 1,474 263 2,203 0 -- 353 2,956
Hunt (J.B.) Transport Services
Inc. 0 -- 0 -- 522 6,003 0 -- 0 --
Kansas City Southern
Industries Inc. 133 10,474 1,331 104,816 1,872 147,420 1,984 156,240 6,203 488,486
Norfolk Southern Corp. 182 2,468 2,535 34,381 6,601 89,526 5,788 78,500 12,072 163,726
Overseas Shipholding Group
Inc. 393 8,179 273 5,682 482 10,032 362 7,534 331 6,889
Roadway Express Inc. 46 949 139 2,867 237 4,888 217 4,476 317 6,538
Union Pacific Corp. 268 10,184 1,639 62,282 4,095 155,610 3,463 131,594 7,610 289,180
United Parcel Service Inc. 0 -- 200 10,925 900 49,163 200 10,925 2,500 136,563
Wisconsin Central
Transportation Corp. + 400 4,950 704 8,712 1,415 17,511 1,350 16,706 2,850 35,269
Yellow Corporation + 49 784 196 3,136 513 8,208 267 4,272 386 6,176
--------- ---------- ----------- ----------- -----------
67,518 422,417 985,351 835,373 2,069,544
</TABLE>
50
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
TRUCKING & LEASING
Percent of Net Assets 0.02% 0.01% 0.02% 0.02% 0.03%
GATX Corporation 246 $ 7,657 451 $ 14,037 1,331 $ 41,427 1,091 $ 33,957 2,679 $ 83,384
Ryder System Inc. 129 2,403 462 8,605 1,022 19,035 873 16,260 1,995 37,157
Xtra Corp. + 200 7,963 176 7,007 263 10,471 179 7,126 442 17,597
----------- ----------- ------------ ----------- -----------
18,023 29,649 70,933 57,343 138,138
WATER
Percent of Net Assets 0.00% 0.01% 0.01% 0.01% 0.01%
American Water Works Inc. 200 4,000 780 15,600 1,765 35,300 1,707 34,140 3,656 73,120
Azurix Corp. + 0 -- 0 -- 200 1,500 200 1,500 400 3,000
----------- ----------- ------------ ----------- -----------
4,000 15,600 36,800 35,640 76,120
TOTAL U.S. COMMON STOCKS 13,738,224 77,146,094 205,139,585 171,484,494 420,120,070
(Cost $9,194,648,
$55,788,197, $147,980,665,
$119,146,509, and
$309,343,646 respectively)
INTERNATIONAL COMMON STOCKS
Percentage of Net Assets 6.44% 10.51% 15.24% 19.62% 20.93%
AUSTRALIA
Percent of Net Assets 0.18% 0.26% 0.39% 0.51% 0.56%
Broken Hill Proprietary Co.
Ltd. ADR 420 8,400 1,578 31,560 4,301 86,020 3,712 74,240 8,137 162,740
Coles Myer Ltd. ADR 814 27,473 2,432 82,080 6,665 224,944 6,159 207,866 12,449 420,154
National Australia Bank 803 53,149 2,631 174,139 7,102 470,064 6,297 416,783 13,845 916,366
News Corporation Ltd. 574 33,471 2,180 127,121 5,604 326,783 4,925 287,189 10,675 622,486
Westpac Banking Corp. ADR 1,036 33,411 3,958 127,646 10,239 330,208 9,313 300,344 19,732 636,357
WMC Ltd. ADR 730 11,133 2,437 37,164 6,649 101,397 6,095 92,949 12,418 189,375
----------- ----------- ------------ ----------- -----------
167,037 579,710 1,539,416 1,379,371 2,947,478
CANADA
Percent of Net Assets 0.18% 0.47% 0.79% 0.96% 1.16%
Alcan Aluminium Ltd. 178 5,858 1,630 53,790 3,960 130,680 3,334 110,022 6,672 220,176
Barrick Gold Corp. 123 2,006 2,288 37,323 6,527 106,472 5,237 85,429 11,904 194,184
Canadian National Railway
Co. 8 189 12 283 24 566 22 518 46 1,084
Inco Ltd. + 66 1,155 809 14,158 3,055 53,463 2,385 41,738 5,473 95,778
Laidlaw Inc. "B" 0 -- 1,814 5,555 5,428 16,623 4,817 14,752 9,327 28,564
Moore Corp. Ltd. 0 -- 428 1,980 1,508 6,975 1,161 5,370 2,759 12,760
Nortel Networks Corp. 1,336 148,964 7,244 807,706 20,754 2,314,071 17,362 1,935,863 42,946 4,788,479
Placer Dome Inc. 21 184 2,072 18,130 5,226 45,728 4,595 40,206 8,811 77,096
Seagram Co. Ltd. 144 8,460 2,650 155,688 7,401 434,809 6,130 360,137 13,699 804,816
----------- ----------- ------------ ----------- -----------
166,816 1,094,613 3,109,387 2,594,035 6,222,937
DENMARK
Percent of Net Assets 0.24% 0.35% 0.47% 0.62% 0.69%
Novo-Nordisk A/S ADR 1,792 113,456 6,561 415,393 15,536 983,623 13,964 884,096 32,057 2,029,609
Tele Denmark A/S ADR 2,698 111,461 9,456 390,651 21,062 870,124 19,724 814,848 40,252 1,662,911
----------- ----------- ------------ ----------- -----------
224,917 806,044 1,853,747 1,698,944 3,692,520
FINLAND
Percent of Net Assets 0.19% 0.28% 0.37% 0.51% 0.50%
Nokia OYJ 912 180,861 3,276 649,672 7,432 1,473,859 7,022 1,392,550 13,602 2,697,447
----------- ----------- ------------ ----------- -----------
180,861 649,672 1,473,859 1,392,550 2,697,447
FRANCE
Percent of Net Assets 0.63% 0.93% 1.43% 1.71% 2.01%
Alcatel SA ADR 2,489 117,605 9,892 467,397 23,884 1,128,519 20,880 986,580 48,653 2,298,854
Aventis SA 1,514 78,728 5,655 294,060 14,306 743,912 12,842 667,784 29,095 1,512,940
AXA Financial Inc. ADR 600 17,963 2,112 63,228 3,830 114,661 4,128 123,582 8,426 252,253
AXA-UAP ADR 1,675 105,525 5,408 340,704 13,797 869,211 11,878 748,314 27,260 1,717,380
ELF Aquitaine ADR 0 -- 0 -- 4,800 377,100 100 7,856 10,000 785,625
LVMH Moet-Hennessy Louis
Vuitton ADR 731 53,363 2,753 200,969 6,695 488,735 6,286 458,878 12,299 897,827
Total Fina SA 3,252 218,291 11,316 759,587 28,100 1,886,213 24,558 1,648,456 50,426 3,384,845
Total Fina SA Warrants
(Expires 08/08/03) + 0 -- 81 2,045 81 2,045 81 2,045 162 4,091
----------- ----------- ------------ ----------- -----------
591,475 2,127,990 5,610,396 4,643,495 10,853,815
GERMANY
Percent of Net Assets 0.54% 0.90% 1.28% 1.58% 1.59%
DaimlerChrysler AG 3,389 229,604 13,898 941,590 34,249 2,320,370 30,655 2,076,876 48,889 3,312,230
Deutsche Telekom AG ADR 3,326 280,839 13,358 1,127,916 32,315 2,728,598 26,280 2,219,018 62,380 5,267,211
----------- ----------- ------------ ----------- -----------
510,443 2,069,506 5,048,968 4,295,894 8,579,441
HONG KONG
Percent of Net Assets 0.29% 0.42% 0.60% 0.81% 0.92%
Cable & Wireless Ltd. ADR 8,822 274,033 31,282 971,697 75,841 2,355,811 70,625 2,193,789 159,748 4,962,172
----------- ----------- ------------ ----------- -----------
274,033 971,697 2,355,811 2,193,789 4,962,172
IRELAND
Percent of Net Assets 0.08% 0.13% 0.17% 0.22% 0.24%
Allied Irish Banks PLC
ADR 4,238 69,132 15,706 256,204 33,969 554,119 32,045 522,734 65,383 1,066,560
Smurfit (Jefferson) Group
ADR 505 12,025 1,860 44,291 4,740 112,871 3,751 89,321 8,944 212,979
----------- ----------- ------------ ----------- -----------
81,157 300,495 666,990 612,055 1,279,539
</TABLE>
51
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios 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)
ITALY
Percent of Net Assets 0.12% 0.22% 0.32% 0.38% 0.43%
Benetton Group SpA ADR 1,507 $ 59,244 5,462 $ 214,725 13,932 $ 547,702 12,616 $ 495,967 28,026 $ 1,101,772
Fiat SpA ADR 1,149 35,332 6,815 209,561 14,450 444,338 10,789 331,746 25,676 789,522
Montedison SpA ADR 1,179 20,633 5,031 88,043 15,607 273,123 12,247 214,323 25,877 452,848
---------- ---------- ----------- ----------- -----------
115,209 512,329 1,265,163 1,042,036 2,344,142
JAPAN
Percent of Net Assets 1.42% 2.29% 3.27% 4.56% 4.65%
Canon Inc. ADR 790 33,575 3,530 150,025 8,945 380,163 8,735 371,238 17,650 750,125
CSK Corp. ADR 1,116 127,224 4,520 515,280 11,320 1,290,480 11,011 1,255,254 22,252 2,536,728
Fuji Photo Film -Ordinary
Shares ADR 575 25,588 2,360 105,020 5,824 259,168 5,656 251,692 11,430 508,635
Hitachi Ltd. ADR 432 59,913 1,824 252,966 4,458 618,269 4,384 608,006 8,866 1,229,603
Honda Motor Company Ltd. ADR 333 22,478 1,385 93,488 3,477 234,698 3,272 220,860 6,624 447,120
Ito-Yokado Co. Ltd. ADR 1,120 66,150 3,710 219,122 9,310 549,872 9,102 537,587 18,384 1,085,805
Japan Air Lines ADR 5,908 29,171 23,240 114,748 57,475 283,783 56,364 278,297 113,907 562,416
Kirin Brewery Co. Ltd. ADR 997 118,518 3,682 437,698 8,966 1,065,833 8,880 1,055,610 17,942 2,132,855
Kubota Corp. ADR 834 50,457 3,643 220,402 8,576 518,848 8,395 507,898 16,960 1,026,080
Kyocera Corp. ADR 560 103,005 1,958 360,150 4,652 855,677 4,520 831,398 9,134 1,680,085
Makita Corp. ADR 820 6,765 3,293 27,167 8,009 66,074 7,967 65,728 16,103 132,850
Matsushita Electric
Industrial Co. 257 75,542 833 244,850 1,561 458,836 1,551 455,897 3,126 918,849
Mitsubishi Corp. ADR 1,394 20,583 10,725 158,359 26,718 394,502 26,300 388,330 53,150 784,781
Mitsui & Co. ADR 360 44,055 1,475 180,503 3,622 443,242 3,564 436,145 7,195 880,488
NEC Corp. ADR 683 77,094 2,813 317,517 6,910 779,966 6,744 761,229 13,629 1,538,373
Nippon Telegraph & Telephone
Corp. ADR 1,224 83,232 4,169 283,492 10,340 703,120 10,118 688,024 20,444 1,390,192
Nissan Motor Co. Ltd. ADR 2,135 16,680 8,626 67,391 21,254 166,047 20,999 164,055 42,437 331,539
Pioneer Corp. ADR 1,192 38,442 5,217 168,248 12,994 419,057 12,717 410,123 25,686 828,374
Ricoh Corp. Ltd. ADR 377 33,821 1,599 143,449 3,959 355,170 3,865 346,737 7,823 701,817
Sony Corp. ADR 268 83,985 1,082 339,072 2,650 830,444 2,643 828,250 5,336 1,672,169
Tokio Marine and Fire
Insurance Co. Ltd 2,318 107,497 8,660 401,608 21,386 991,776 20,989 973,365 42,418 1,967,135
Toyota Motor Corp. ADR 1,378 112,049 5,161 419,654 14,281 1,161,224 12,649 1,028,522 25,584 2,080,299
---------- ---------- ----------- ----------- -----------
1,335,824 5,220,209 12,826,249 12,464,245 25,186,318
NETHERLANDS
Percent of Net Assets 0.39% 0.76% 1.20% 1.46% 1.65%
Aegon NV ADR 16 1,114 780 54,308 2,732 190,216 1,713 119,268 3,347 233,035
Elsevier NV ADR 2,527 54,646 9,361 202,432 23,806 514,805 21,321 461,067 47,406 1,025,155
KLM Royal Dutch Airlines ADR 148 2,821 457 8,712 1,240 23,638 1,077 20,530 2,257 43,024
Koninklijke Ahold NV ADR 2,084 49,365 7,387 174,980 18,980 449,589 16,896 400,224 35,369 837,803
Koninklijke Philips
Electronics NV 336 64,344 1,299 248,759 2,986 571,819 2,673 511,880 6,815 1,305,073
Royal Dutch Petroleum Co. 1,776 93,240 13,718 720,195 36,712 1,927,380 30,730 1,613,325 68,672 3,605,280
Unilever NV 2,195 99,873 7,820 355,810 21,707 987,669 19,033 866,002 40,764 1,854,762
---------- ---------- ----------- ----------- -----------
365,403 1,765,196 4,665,116 3,992,296 8,904,132
NEW ZEALAND
Percent of Net Assets 0.03% 0.04% 0.06% 0.08% 0.08%
Telecom Corp. of New
Zealand Ltd. 75 25,569 2,558 86,173 6,773 228,165 6,171 207,886 12,640 425,810
---------- ---------- ----------- ----------- -----------
25,569 86,173 228,165 207,886 425,810
SPAIN
Percent of Net Assets 0.30% 0.47% 0.64% 0.85% 0.87%
Banco Bilbao Vizcaya
Argentaria SA ADR 2,910 43,286 10,108 150,357 26,195 389,651 23,603 351,095 49,981 743,467
Banco Santander Central
Hispano SA ADR 10,054 105,567 36,748 385,854 76,428 802,494 73,588 772,674 144,836 1,520,778
Repsol SA 2,001 38,269 7,400 141,525 16,225 310,303 15,550 297,394 30,289 579,277
Telefonica SA ADR + 1,065 92,322 4,714 408,645 11,626 1,007,829 10,343 896,609 20,912 1,812,809
---------- ---------- ----------- ----------- -----------
279,444 1,086,381 2,510,277 2,317,772 4,656,331
SWEDEN
Percent of Net Assets 0.23% 0.33% 0.46% 0.59% 0.68%
SKF AB ADR 421 8,367 1,631 32,416 4,277 85,005 3,864 76,797 8,311 165,181
Swedish Match AB ADR 752 24,628 2,202 72,116 5,227 171,184 4,955 162,276 9,643 315,808
Telefonaktiebolaget LM
Ericsson 1,832 175,872 7,026 674,496 16,584 1,592,064 14,128 1,356,288 33,271 3,194,016
---------- ---------- ----------- ----------- -----------
208,867 779,028 1,848,253 1,595,361 3,675,005
UNITED KINGDOM
Percent of Net Assets 1.62% 2.66% 3.79% 4.78% 4.90%
Allied Zurich PLC ADR 2,120 36,146 8,258 140,799 17,502 298,409 16,798 286,406 28,571 487,136
AstraZeneca PLC ADR 3,373 111,731 12,305 407,603 26,836 888,943 25,456 843,230 49,949 1,654,561
BP Amoco PLC ADR 3,408 160,176 16,200 761,400 38,088 1,790,136 33,708 1,584,276 27,912 1,311,864
British Airways PLC ADR 390 18,257 1,600 74,900 4,095 191,697 3,829 179,245 7,749 362,750
British American Tobacco
PLC ADR 521 4,429 8,158 69,343 18,103 153,876 9,900 84,150 57,974 492,779
British Sky Broadcasting
PLC ADR 447 71,464 1,785 285,377 4,577 731,748 4,058 648,773 8,663 1,384,997
British Telecom PLC ADR 1,564 278,783 6,223 1,109,250 15,123 2,695,675 12,465 2,221,886 29,297 5,222,190
Cadbury Schweppes PLC ADR 2,334 57,475 8,124 200,054 18,122 446,254 17,056 420,004 34,868 858,625
Corus Group PLC 518 8,903 1,572 27,019 4,042 69,472 3,120 53,625 7,173 123,286
Diageo PLC ADR 2,587 79,712 9,595 295,646 24,302 748,805 21,726 669,432 48,928 1,507,594
Glaxo Wellcome PLC ADR 2,560 124,800 9,392 457,860 22,531 1,098,386 19,936 971,880 46,042 2,244,548
Hanson PLC ADR 1,699 54,156 5,756 183,473 15,127 482,173 13,592 433,241 29,816 950,385
Imperial Chemical Industries
PLC ADR 749 23,219 2,641 81,871 7,033 218,023 6,573 203,763 13,097 406,007
National Power PLC ADR 638 15,472 2,100 50,925 5,631 136,552 5,121 124,184 10,415 252,564
Premier Farnell PLC ADR 1,699 22,830 6,319 84,912 16,299 219,018 13,376 179,740 29,709 399,215
</TABLE>
52
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020
------------------------ ----------------------- -----------------------
Shares Value Shares Value Shares Value
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (Continued)
Reuters Group PLC ADR 384 $ 51,120 1,713 $ 228,043 4,404 $ 586,283
Smithkline Beecham PLC ADR 1,445 81,191 5,495 308,750 13,771 773,758
Vodafone AirTouch PLC ADR 5,550 320,166 23,320 1,345,273 57,720 3,329,723
----------- ------------ ------------
1,520,030 6,112,498 14,858,931
TOTAL INTERNATIONAL COMMON STOCKS 6,047,085 24,161,541 59,860,728
(Cost $3,833,980, $14,936,952, $37,989,252,
$34,366,296, and $78,860,822 respectively)
TOTAL COMMON STOCKS 19,785,309 101,307,635 265,000,313
(Cost $13,028,628, $70,725,149, $185,969,917,
$153,512,805, and $388,204,468 respectively)
<CAPTION>
LifePath 2030 LifePath 2040
------------------- ------------------------
Shares Value Shares Value
-----------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS (Continued) 3,956 $ 526,643 8,631 $ 1,149,002
Reuters Group PLC ADR 12,318 692,118 28,217 1,585,443
Smithkline Beecham PLC ADR 49,503 2,855,704 105,290 6,073,917
Vodafone AirTouch PLC ADR ------------ ------------
12,978,300 26,466,863
TOTAL INTERNATIONAL COMMON STOCKS 53,408,029 112,893,950
(Cost $3,833,980, $14,936,952, $37,989,252,
$34,366,296, and $78,860,822 respectively)
TOTAL COMMON STOCKS
(Cost $13,028,628, $70,725,149, $185,969,917, 224,892,523 533,014,020
$153,512,805, and $388,204,468 respectively)
</TABLE>
53
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010
------------------------------- ----------------------------
Principal Value Principal Value
- ----------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BONDS & NOTES
<S> <C> <C> <C> <C>
Percent of Net Assets 64.93% 49.34%
U.S. Treasury Bonds, 5.25%, 11/15/28 $ 0 $ -- $ 0 $ --
U.S. Treasury Bonds, 6.00%, 02/15/26 0 -- 0 --
U.S. Treasury Bonds, 6.13%, 11/15/27-08/15/29 0 -- 150,000 147,375
U.S. Treasury Bonds, 6.25%, 08/15/23 200,000 196,625 0 --
U.S. Treasury Bonds, 6.38%, 08/15/27 0 -- 0 --
U.S. Treasury Bonds, 6.50%, 11/15/26 0 -- 0 --
U.S. Treasury Bonds, 6.63%, 02/15/27 0 -- 0 --
U.S. Treasury Bonds, 6.75%, 08/15/26 0 -- 0 --
U.S. Treasury Bonds, 6.88%, 08/15/25 0 -- 0 --
U.S. Treasury Bonds, 7.13%, 02/15/23 0 -- 350,000 379,860
U.S. Treasury Bonds, 7.25%, 05/15/16-08/15/22 0 -- 0 --
U.S. Treasury Bonds, 7.50%, 11/15/16-11/15/24 150,000 170,812 0 --
U.S. Treasury Bonds, 7.63%, 11/15/22-02/15/25 0 -- 0 --
U.S. Treasury Bonds, 7.88%, 02/15/21 0 -- 0 --
U.S. Treasury Bonds, 8.00%, 11/15/21 100,000 118,219 0 --
U.S. Treasury Bonds, 8.13%, 08/15/19-08/15/21 0 -- 200,000 238,813
U.S. Treasury Bonds, 8.25%, 05/15/00-05/15/05 500,000 503,125 350,000 352,187
U.S. Treasury Bonds, 8.50%, 02/15/20 0 -- 0 --
U.S. Treasury Bonds, 8.75%, 05/15/17-08/15/20 0 -- 0 --
U.S. Treasury Bonds, 8.88%, 08/15/17-02/15/19 0 -- 0 --
U.S. Treasury Bonds, 9.00%, 11/15/18 0 -- 0 --
U.S. Treasury Bonds, 9.13%, 05/15/09-05/15/18 0 -- 400,000 431,500
U.S. Treasury Bonds, 9.38%, 02/15/06 950,000 1,073,204 600,000 677,813
U.S. Treasury Bonds, 10.00%, 05/15/10 0 -- 0 --
U.S. Treasury Bonds, 10.63%, 11/15/12-08/15/15 0 -- 0 --
U.S. Treasury Bonds, 10.75%, 02/15/03-08/15/05 3,350,000 3,801,080 3,450,000 4,050,251
U.S. Treasury Bonds, 11.13%, 08/15/03 1,650,000 1,870,687 400,000 453,500
U.S. Treasury Bonds, 11.25%, 02/15/15 200,000 287,813 400,000 575,625
U.S. Treasury Bonds, 11.63%, 11/15/02-11/15/04 0 -- 1,400,000 1,631,890
U.S. Treasury Bonds, 11.75%, 11/15/14 0 -- 0 --
U.S. Treasury Bonds, 11.88%, 11/15/03 0 -- 0 --
U.S. Treasury Bonds, 12.00%, 05/15/05-08/15/13 200,000 245,563 500,000 613,906
U.S. Treasury Bonds, 12.38%, 05/15/04 0 -- 1,500,000 1,804,687
U.S. Treasury Bonds, 12.50%, 08/15/14 0 -- 0 --
U.S. Treasury Bonds, 13.13%, 05/15/01 0 -- 0 --
U.S. Treasury Bonds, 13.75%, 08/15/04 500,000 633,437 0 --
U.S. Treasury Notes, 4.25%, 11/15/03 0 -- 1,700,000 1,571,437
U.S. Treasury Notes, 4.75%, 02/15/04-11/15/08 1,600,000 1,464,312 4,050,000 3,636,564
U.S. Treasury Notes, 4.88%, 03/31/01 0 -- 1,300,000 1,279,687
U.S. Treasury Notes, 5.00%, 04/30/01 1,100,000 1,083,157 1,600,000 1,575,501
U.S. Treasury Notes, 5.25%, 08/15/03-05/15/04 600,000 570,375 3,200,000 3,055,500
U.S. Treasury Notes, 5.38%, 06/30/03 1,000,000 963,438 0 --
U.S. Treasury Notes, 5.50%, 01/31/03-05/15/09 2,675,000 2,524,632 8,600,000 8,200,439
U.S. Treasury Notes, 5.63%, 05/15/01-05/15/08 1,700,000 1,613,937 6,050,000 5,767,001
U.S. Treasury Notes, 5.75%, 10/31/02-08/15/03 5,350,000 5,237,500 5,550,000 5,429,078
U.S. Treasury Notes, 5.88%, 10/31/01-11/15/05 4,050,000 3,945,891 5,850,000 5,682,033
U.S. Treasury Notes, 6.00%, 07/31/02-08/15/09 900,000 865,688 3,700,000 3,602,126
U.S. Treasury Notes, 6.13%, 12/31/01-08/15/07 4,000,000 3,886,875 6,100,000 6,002,000
U.S. Treasury Notes, 6.25%, 04/30/01-02/15/07 7,500,000 7,433,000 9,450,000 9,354,096
U.S. Treasury Notes, 6.38%, 03/31/01-08/15/02 4,700,000 4,684,689 6,200,000 6,180,313
U.S. Treasury Notes, 6.50%, 05/31/01-10/15/06 7,550,000 7,505,690 12,400,000 12,307,941
U.S. Treasury Notes, 6.63%, 06/30/01-05/15/07 1,800,000 1,803,375 8,350,000 8,357,580
U.S. Treasury Notes, 6.88%, 05/15/06 2,500,000 2,522,658 3,000,000 3,027,189
U.S. Treasury Notes, 7.00%, 07/15/06 2,000,000 2,031,250 4,500,000 4,570,313
<CAPTION>
LifePath Income LifePath 2020 LifePath 2030
--------------------------- ---------------------------- ----------------------
Principal Value Principal Value Principal Value
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BONDS & NOTES
<S> <C> <C> <C> <C> <C> <C>
Percent of Net Assets 28.81% 14.88% 0.86%
U.S. Treasury Bonds, 5.25%, 11/15/28 $ 550,000 $ 473,860 $ 0 $ -- $ 0 $ --
U.S. Treasury Bonds, 6.00%, 02/15/26 0 -- 900,000 860,907 0 --
U.S. Treasury Bonds, 6.13%, 11/15/27-08/15/29 1,100,000 1,075,500 1,600,000 1,563,250 300,000 294,750
U.S. Treasury Bonds, 6.25%, 08/15/23 1,000,000 983,125 1,300,000 1,278,062 450,000 442,406
U.S. Treasury Bonds, 6.38%, 08/15/27 0 -- 600,000 603,000 0 --
U.S. Treasury Bonds, 6.50%, 11/15/26 600,000 612,188 600,000 612,188 0 --
U.S. Treasury Bonds, 6.63%, 02/15/27 500,000 518,125 500,000 518,125 0 --
U.S. Treasury Bonds, 6.75%, 08/15/26 0 -- 500,000 525,625 0 --
U.S. Treasury Bonds, 6.88%, 08/15/25 500,000 532,031 600,000 638,438 0 --
U.S. Treasury Bonds, 7.13%, 02/15/23 0 -- 910,000 987,635 0 --
U.S. Treasury Bonds, 7.25%, 05/15/16-08/15/22 750,000 813,610 1,800,000 1,954,563 375,000 407,993
U.S. Treasury Bonds, 7.50%, 11/15/16-11/15/24 0 -- 2,750,000 3,078,094 0 --
U.S. Treasury Bonds, 7.63%, 11/15/22-02/15/25 1,000,000 1,148,015 2,650,000 3,055,313 500,000 577,969
U.S. Treasury Bonds, 7.88%, 02/15/21 0 -- 650,000 756,031 0 --
U.S. Treasury Bonds, 8.00%, 11/15/21 700,000 827,532 500,000 591,094 0 --
U.S. Treasury Bonds, 8.13%, 08/15/19-08/15/21 1,650,000 1,956,985 1,350,000 1,611,423 250,000 295,547
U.S. Treasury Bonds, 8.25%, 05/15/00-05/15/05 0 -- 0 -- 0 --
U.S. Treasury Bonds, 8.50%, 02/15/20 0 -- 200,000 245,250 0 --
U.S. Treasury Bonds, 8.75%, 05/15/17-08/15/20 1,000,000 1,256,688 2,350,000 2,925,203 900,000 1,118,437
U.S. Treasury Bonds, 8.88%, 08/15/17-02/15/19 500,000 629,219 1,950,000 2,428,969 0 --
U.S. Treasury Bonds, 9.00%, 11/15/18 350,000 444,281 350,000 444,281 0 --
U.S. Treasury Bonds, 9.13%, 05/15/09-05/15/18 500,000 539,375 600,000 767,063 0 --
U.S. Treasury Bonds, 9.38%, 02/15/06 1,050,000 1,186,172 800,000 903,750 0 --
U.S. Treasury Bonds, 10.00%, 05/15/10 0 -- 330,000 374,035 0 --
U.S. Treasury Bonds, 10.63%, 11/15/12-08/15/15 650,000 867,235 900,000 1,214,657 450,000 544,219
U.S. Treasury Bonds, 10.75%, 02/15/03-08/15/05 1,400,000 1,654,188 0 -- 50,000 59,078
U.S. Treasury Bonds, 11.13%, 08/15/03 600,000 680,250 0 -- 0 --
U.S. Treasury Bonds, 11.25%, 02/15/15 850,000 1,223,204 600,000 863,438 0 --
U.S. Treasury Bonds, 11.63%, 11/15/02-11/15/04 0 -- 0 -- 0 --
U.S. Treasury Bonds, 11.75%, 11/15/14 450,000 608,625 600,000 811,500 0 --
U.S. Treasury Bonds, 11.88%, 11/15/03 950,000 1,107,641 0 -- 0 --
U.S. Treasury Bonds, 12.00%, 05/15/05-08/15/13 820,000 1,039,306 1,100,000 1,462,312 0 --
U.S. Treasury Bonds, 12.38%, 05/15/04 700,000 842,187 0 -- 0 --
U.S. Treasury Bonds, 12.50%, 08/15/14 350,000 488,250 350,000 488,250 0 --
U.S. Treasury Bonds, 13.13%, 05/15/01 0 -- 100,000 107,687 0 --
U.S. Treasury Bonds, 13.75%, 08/15/04 100,000 126,687 0 -- 0 --
U.S. Treasury Notes, 4.25%, 11/15/03 1,200,000 1,109,250 0 -- 0 --
U.S. Treasury Notes, 4.75%, 02/15/04-11/15/08 3,000,000 2,746,344 0 -- 0 --
U.S. Treasury Notes, 4.88%, 03/31/01 1,900,000 1,870,312 0 -- 0 --
U.S. Treasury Notes, 5.00%, 04/30/01 0 -- 0 -- 0 --
U.S. Treasury Notes, 5.25%, 08/15/03-05/15/04 3,400,000 3,246,376 250,000 239,531 0 --
U.S. Treasury Notes, 5.38%, 06/30/03 0 -- 0 -- 0 --
U.S. Treasury Notes, 5.50%, 01/31/03-05/15/09 6,800,000 6,449,439 0 -- 0 --
U.S. Treasury Notes, 5.63%, 05/15/01-05/15/08 7,600,000 7,303,971 1,000,000 943,750 0 --
U.S. Treasury Notes, 5.75%, 10/31/02-08/15/03 1,500,000 1,465,531 300,000 291,937 0 --
U.S. Treasury Notes, 5.88%, 10/31/01-11/15/05 9,900,000 9,693,127 2,200,000 2,117,500 300,000 288,750
U.S. Treasury Notes, 6.00%, 07/31/02-08/15/09 4,000,000 3,901,657 0 -- 0 --
U.S. Treasury Notes, 6.13%, 12/31/01-08/15/07 4,450,000 4,370,313 450,000 435,938 0 --
U.S. Treasury Notes, 6.25%, 04/30/01-02/15/07 7,350,000 7,295,657 150,000 148,969 0 --
U.S. Treasury Notes, 6.38%, 03/31/01-08/15/02 1,350,000 1,348,031 575,000 575,000 0 --
U.S. Treasury Notes, 6.50%, 05/31/01-10/15/06 16,730,000 16,629,497 1,500,000 1,488,938 200,000 198,375
U.S. Treasury Notes, 6.63%, 06/30/01-05/15/07 6,850,000 6,857,713 0 -- 0 --
U.S. Treasury Notes, 6.88%, 05/15/06 2,500,000 2,522,658 1,000,000 1,009,063 300,000 302,719
U.S. Treasury Notes, 7.00%, 07/15/06 4,200,000 4,265,625 600,000 609,375 0 --
</TABLE>
54
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29, 2000
Portfolios of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020
-------------------------- -------------------------- --------------------------
Principal Value Principal Value Principal Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
U.S. TREASURY BONDS & NOTES (Continued)
U.S. Treasury Notes, 7.25%, 08/15/04 $1,250,000 $ 1,278,125 $3,300,000 $ 3,374,250 $3,800,000 $ 3,885,500
U.S. Treasury Notes, 7.50%, 11/15/01-02/15/05 2,350,000 2,404,938 4,150,000 4,228,610 4,650,000 4,768,970
U.S. Treasury Notes, 7.88%, 11/15/04 0 -- 700,000 733,469 700,000 733,469
U.S. Treasury Notes, 8.00%, 05/15/01 350,000 356,344 3,750,000 3,817,969 1,250,000 1,272,656
----------- ------------ ------------
TOTAL U.S. TREASURY BONDS & NOTES 61,076,439 113,110,503 113,370,375
(Cost $62,768,855, $116,342,034, $116,197,852,
$41,129,281, and $4,762,953 respectively)
<CAPTION>
LifePath 2030 LifePath 2040
--------------------------- --------------------------
Principal Value Principal Value
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. TREASURY BONDS & NOTES (Continued)
U.S. Treasury Notes, 7.25%, 08/15/04 $250,000 $ 255,625 $ 0 $ --
U.S. Treasury Notes, 7.50%, 11/15/01-02/15/05 700,000 724,282 100,000 103,469
U.S. Treasury Notes, 7.88%, 11/15/04 0 -- 0 --
U.S. Treasury Notes, 8.00%, 05/15/01 0 -- 0 --
----------- ----------
TOTAL U.S. TREASURY BONDS & NOTES 40,510,051 4,633,712
(Cost $62,768,855, $116,342,034, $116,197,852,
$41,129,281, and $4,762,953 respectively)
</TABLE>
55
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 29,2000
Portfolios of Investments
<TABLE>
<CAPTION>
LifePath Income LifePath 2010
--------------------------- ----------------------------
Principal Value Principal Value
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT TERM INSTRUMENTS
Percent of Net Assets 2.10% 3.74%
Goldman Sachs Financial Square Prime Obligation Fund, ++ $ 275,482 $ 275,482 $ 568,684 $ 568,684
Providian Temp Cash Money Market Fund ++ 1,500,000 1,500,000 7,000,000 7,000,000
Short Term Investment Company Liquid Assets Portfolio, ++ 200,000 200,000 1,000,000 1,000,000
----------- ------------
TOTAL SHORT TERM INSTRUMENTS 1,975,482 8,568,684
(Cost $1,975,482, $8,568,684, $25,720,454, $19,498,975,
and $49,462,092 respectively)
- ------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS
Percent of Net Assets 13.34% 7.68%
Morgan Stanley Tri Party Repurchase Agreement, dated 2/29/00,
due 3/1/00, with a maturity value of $ 61,149,986 and an
effective yield of 5.46%., 12,550,209 12,550,209 17,612,597 17,612,597
----------- ------------
TOTAL REPURCHASE AGREEMENTS 12,550,209 17,612,597
(Cost $12,550,209, $17,612,597, $18,947,719, $11,480,040,
and $550,149 respectively)
TOTAL INVESTMENTS IN SECURITIES 101.41 % $95,387,439 104.96% $240,599,419
(Cost $90,323,174, $213,248,464, $346,835,942, $225,621,101,
and $442,979,662 respectively)
Other Assets and Liabilities, Net (1.41)% (1,326,653) (4.96)% (11,367,800)
--------------------------- ----------------------------
TOTAL NET ASSETS 100.00 % $94,060,786 100.00% $229,231,619
=========================== ============================
<CAPTION>
LifePath 2020 LifePath 2030
--------------------------- ----------------------------
Principal Value Principal Value
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT TERM INSTRUMENTS
Percent of Net Assets 6.54% 7.16%
Goldman Sachs Financial Square Prime Obligation Fund, ++ $ 20,454 $ 20,454 $ 6,498,975 $ 6,498,975
Providian Temp Cash Money Market Fund ++ 17,700,000 17,700,000 12,000,000 12,000,000
Short Term Investment Company Liquid Assets Portfolio, ++ 8,000,000 8,000,000 1,000,000 1,000,000
------------ ------------
TOTAL SHORT TERM INSTRUMENTS 25,720,454 19,498,975
(Cost $1,975,482, $8,568,684, $25,720,454, $19,498,975,
and $49,462,092 respectively)
- ------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS
Percent of Net Assets 4.81% 4.22%
Morgan Stanley Tri Party Repurchase Agreement, dated 2/29/00,
due 3/1/00, with a maturity value of $ 61,149,986 and an
effective yield of 5.46%., 18,947,719 18,947,719 11,480,040 11,480,040
------------ ------------
TOTAL REPURCHASE AGREEMENTS 18,947,719 11,480,040
(Cost $12,550,209, $17,612,597, $18,947,719, $11,480,040,
and $550,149 respectively)
TOTAL INVESTMENTS IN SECURITIES 107.50 % $423,038,861 108.88 % $296,381,589
(Cost $90,323,174, $213,248,464, $346,835,942, $225,621,101,
and $442,979,662 respectively)
Other Assets and Liabilities, Net (7.50)% (29,508,534) (8.88)% (24,162,912)
--------------------------- ----------------------------
TOTAL NET ASSETS 100.00 % $393,630,327 100.00 % $272,218,877
=========================== ============================
<CAPTION>
LifePath 2040
---------------------------
Principal Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT TERM INSTRUMENTS
Percent of Net Assets 9.16%
Goldman Sachs Financial Square Prime Obligation Fund, ++ $ 8,062,092 $ 8,062,092
Providian Temp Cash Money Market Fund ++ 19,400,000 19,400,000
Short Term Investment Company Liquid Assets Portfolio, ++ 22,000,000 22,000,000
------------
TOTAL SHORT TERM INSTRUMENTS 49,462,092
(Cost $1,975,482, $8,568,684, $25,720,454, $19,498,975,
and $49,462,092 respectively)
- ----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS
Percent of Net Assets 0.10%
Morgan Stanley Tri Party Repurchase Agreement, dated 2/29/00,
due 3/1/00, with a maturity value of $ 61,149,986 and an
effective yield of 5.46%., 550,149 550,149
------------
TOTAL REPURCHASE AGREEMENTS 550,149
(Cost $12,550,209, $17,612,597, $18,947,719, $11,480,040,
and $550,149 respectively)
TOTAL INVESTMENTS IN SECURITIES 108.85 % $587,659,973
(Cost $90,323,174, $213,248,464, $346,835,942, $225,621,101,
and $442,979,662 respectively)
Other Assets and Liabilities, Net (8.85)% (47,800,075)
---------------------------
TOTAL NET ASSETS 100.00 % $539,859,898
===========================
</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.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000
<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 $ 90,323,174 $ 213,248,464 $ 346,835,942 $ 225,621,101 $ 442,979,662
------------ ------------- ------------- ------------- -------------
Investments at market value (Note 1) $ 82,837,230 $ 222,986,822 $ 404,091,142 $ 284,901,549 $ 587,109,824
Repurchase agreements (Note 1) 12,550,209 17,612,597 18,947,719 11,480,040 550,149
------------ ------------- ------------- ------------- -------------
Total investments in securities 95,387,439 240,599,419 423,038,861 296,381,589 587,659,973
Receivables:
Investment securities sold - - - - 4,603,316
Dividends and interest 733,160 1,584,358 1,650,737 661,214 590,671
------------ ------------- ------------- ------------- -------------
Total Assets 96,120,599 242,183,777 424,689,598 297,042,803 592,853,960
------------ ------------- ------------- ------------- -------------
LIABILITIES
Payables:
Investment securities purchased - 4,182,684 5,087,413 5,080,237 3,055,935
Collateral for securities loaned (Note 4) 1,975,482 8,568,684 25,720,454 19,498,975 49,462,092
Due to BGI (Note 2) 84,331 200,790 351,404 244,914 476,035
------------ ------------- ------------- ------------- -------------
Total Liabilities 2,059,813 12,952,158 31,159,271 24,824,126 52,994,062
------------ ------------- ------------- ------------- -------------
TOTAL NET ASSETS $ 94,060,786 $ 229,231,619 $ 393,530,327 $ 272,218,677 $ 539,859,898
============ ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
57
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
LifePath Income LifePath 2010 LifePath 2020
Master Portfolio Master Portfolio Master Portfolio
--------------------------------------------------------
<S> <C> <C> <C>
NET INVESTMENT INCOME
Dividends $ 311,233 $ 1,455,403 $ 3,532,076
Interest 4,610,946 7,291,443 7,251,732
----------- ----------- -----------
Total investment income 4,922,179 8,746,846 10,783,808
----------- ----------- -----------
EXPENSES (Note 2)
Advisory fees 592,139 1,282,599 2,101,737
----------- ----------- -----------
Total expenses 592,139 1,282,599 2,101,737
----------- ----------- -----------
Net investment income 4,330,040 7,464,247 8,682,071
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on sale of investments 2,506,435 17,805,780 33,627,531
Net change in unrealized appreciation (depreciation) of investments (1,106,762) (6,180,937) (2,423,834)
----------- ----------- -----------
Net gain on investments 1,399,673 11,624,843 31,203,697
----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,729,713 $19,089,090 $39,885,768
=========== =========== ===========
- -----------------------------------------------------------------------------------------------------------------------------------
+ Net of foreign withholding tax of: $ 4,124 $ 24,709 $ 46,647
( Interest income includes securities lending income of: $ 16,448 $ 52,205 $ 90,008
<CAPTION>
LifePath 2030 LifePath 2040
Master Portfolio Master Portfolio
------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME
Dividends $ 3,086,365 $ 6,551,745
Interest 3,121,291 1,275,146
----------- -----------
Total investment income 6,207,656 7,826,891
----------- -----------
EXPENSES (Note 2)
Advisory fees 1,501,573 2,790,585
----------- -----------
Total expenses 1,501,573 2,790,585
----------- -----------
Net investment income 4,706,083 5,036,306
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on sale of investments 31,399,199 52,425,320
Net change in unrealized appreciation (depreciation) of investments (1,042,385) 19,635,208
----------- -----------
Net gain on investments 30,356,814 72,060,528
----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $35,062,897 $77,096,834
=========== ===========
- ---------------------------------------------------------------------------------------------------------------
+ Net of foreign withholding tax of: $ 50,329 $ 82,544
( Interest income includes securities lending income of: $ 65,081 $ 142,139
</TABLE>
The accompanying notes are an integral part of these financial statements.
58
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath Income Master Portfolio LifePath 2010 Master Portfolio
------------------------------------ -------------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
February 29, 2000 February 28, 1999 February 29, 2000 February 28, 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 4,330,040 $ 4,542,654 $ 7,464,247 $ 7,047,953
Net realized gain 2,506,435 4,718,618 17,805,780 13,218,840
Net change in unrealized
appreciation (depreciation) (1,106,762) (1,372,957) (6,180,937) 2,322,667
------------------------------------ -------------------------------------
Net increase in net assets resulting from operations 5,729,713 7,888,315 19,089,090 22,589,460
Net increase (decrease) in net assets resulting
from interestholder transactions (28,409,337) (7,346,906) (33,418,533) 12,753,903
------------------------------------ -------------------------------------
Increase (decrease) in net assets (22,679,624) 541,409 (14,329,443) 35,343,363
NET ASSETS:
Beginning of period 116,740,410 116,199,001 243,561,062 208,217,699
------------------------------------ -------------------------------------
End of period $ 94,060,786 $ 116,740,410 $ 229,231,619 $ 243,561,062
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LifePath 2020 Master Portfolio LifePath 2030 Master Portfolio
----------------------------------------------------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
February 29, 2000 February 28, 1999 February 29, 2000 February 28, 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 8,682,071 $ 7,913,106 $ 4,706,083 $ 4,472,364
Net realized gain 33,627,531 24,960,119 31,399,199 17,728,114
Net change in unrealized
appreciation (depreciation) (2,423,834) 7,187,708 (1,042,385) 10,724,507
---------------------------------- -------------------------------------
Net increase in net assets resulting from operations 39,885,768 40,060,933 35,062,897 32,924,985
Net increase (decrease) in net assets resulting
from interestholder transactions (12,519,074) (168,062) (39,674,638) 10,295,060
--------------------------------- -------------------------------------
Increase (decrease) in net assets 27,366,694 39,892,871 (4,611,741) 43,220,045
NET ASSETS:
Beginning of period 366,163,633 326,270,762 276,830,418 233,610,373
--------------------------------- -------------------------------------
End of period $ 393,530,327 $ 366,163,633 $ 272,218,677 $ 276,830,418
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LifePath 2020 Master Portfolio
--------------------------------------
For the For the
Year Ended Year Ended
February 29, 2000 February 28, 1999
--------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 5,036,306 $ 5,019,405
Net realized gain 52,425,320 34,827,042
Net change in unrealized
appreciation (depreciation) 19,635,208 23,947,962
--------------------------------------
Net increase in net assets resulting from operations 77,096,834 63,794,409
Net increase (decrease) in net assets resulting
from interestholder transactions (29,755,821) 23,995,369
--------------------------------------
Increase (decrease) in net assets 47,341,013 87,789,778
NET ASSETS:
Beginning of period 492,518,885 404,729,107
--------------------------------------
End of period $ 539,859,898 $492,518,885
- -----------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
MASTER INVESTMENT PORTFOLIO NOTES TO THE FINANCIAL STATEMENTS
1. Significant Accounting Policies
Master Investment Portfolio (''MIP'') is registered under the Investment
Company Act of 1940, as amended (the ''1940 Act''), as an open-end management
investment company. MIP was organized on October 20, 1993 as a Delaware business
trust pursuant to an Agreement and Declaration of Trust dated May 14, 1993, and
had no operations prior to March 1, 1994. MIP currently issues the following
separate portfolios: Asset Allocation, Bond Index, Extended Index, International
Index, LifePath Income (formerly LifePath 2000), 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 significant accounting policies are consistently followed by
MIP in the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting principles for investment
companies. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
Security Valuation
The equity securities of each Master Portfolio are valued at the last
reported sale price on the primary securities exchange or national securities
market on which such securities are traded. Securities not listed on an exchange
or national securities market, or securities in which there was no last reported
sales price, are valued at the most recent bid prices. Debt securities are
generally traded in the over-the-counter market and are valued at a price deemed
best to reflect fair value as quoted by dealers who make markets in those
securities or by an independent pricing source. U.S. Government obligations are
valued at the last reported bid price. Debt securities maturing in 60 days or
less are valued at amortized cost, which approximates market value. Any
securities, restricted securities or other assets for which market quotations
are not readily available, are valued at fair value as determined in good faith
in accordance with policies approved by MIP's Board of Trustees.
Security Transactions and Income Recognition
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Dividend income is recognized on the ex-dividend
date, and interest income is recognized on a daily accrual basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
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
Each Master Portfolio intends to qualify as a partnership for federal
income tax purposes. Each Master Portfolio, therefore, believes that it will not
be subject to any federal income tax on its income and net realized capital
gains (if any). However, each investor in a Master Portfolio will be taxed on
its allocable share of the partnership's income and capital gains for the
purposes of determining its federal income tax
60
<PAGE>
liability. The determination of such share will be made in accordance with the
applicable sections of the Internal Revenue Code of 1986, as amended (the
"Code").
It is intended that each Master Portfolio's assets, income and allocations
will be managed in such a way that an entity qualifying as a "regulated
investment company" investing in a Master Portfolio will be able to satisfy the
requirements of Subchapter M of the Code, assuming for federal income tax
purposes that the regulated investment company invested all of its assets in the
corresponding Master Portfolio.
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 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 February
29, 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 Portfolio of Investments. The advisor to the Master
Portfolios may pool each Master Portfolio's cash and invest in repurchase
agreements entered into by the other Master Portfolios. Each Master Portfolio's
prospectus requires that the cash investments be fully collateralized based on
values that are marked to market daily. The collateral is generally held by an
agent bank under a tri-party agreement. It is the advisor's responsibility to
value collateral daily and to obtain additional collateral as necessary to
maintain the value at equal to or greater than the repurchase price. The
repurchase agreements entered into on February 29, 2000 by the Master Portfolios
are fully collateralized by U.S. Government obligations with a rate of 5.88%, a
maturity date of 7/6/00 and an aggregate market value of $62,391,160.
2. Agreements and Other Transactions with Affiliates
Pursuant to an Investment Advisory Contract with each Master Portfolio,
Barclays Global Fund Advisors ("BGFA") provides investment guidance and policy
direction in connection with the management of each Master Portfolio's assets.
BGFA is entitled to receive 0.55% of the average daily net assets of each of the
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.
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<PAGE>
Stephens Inc. ("Stephens"), is the sponsor and placement agent for the
Master Portfolios.
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
February 29, 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 year ended February 29, 2000, were as follows:
<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
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS:
Purchases at cost $ 52,326,484 $ 92,442,800 $ 106,560,110 $ 38,058,978 $ 43,702,786
Sales proceeds 52,026,336 75,349,856 83,909,136 34,187,575 46,302,908
OTHER SECURITIES:
Purchases at cost $ 923,651 $ 16,024,511 $ 60,679,347 $ 31,799,468 $ 102,976,966
Sales proceeds 9,105,148 40,010,051 74,749,654 65,388,779 120,893,953
</TABLE>
At February 29, 2000 the Master Portfolios' aggregate unrealized
appreciation and depreciation based on cost for federal income tax purposes was
as follows:
<TABLE>
<CAPTION>
Tax Unrealized Unrealized Net Unrealized
Master Portfolio Cost Appreciation Depreciation Appreciation
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LifePath Income Master Portfolio $ 90,364,993 $ 8,515,296 $ (3,492,850) $ 5,022,446
LifePath 2010 Master Portfolio 213,555,821 37,262,811 (10,219,213) 27,043,598
LifePath 2020 Master Portfolio 348,195,145 94,164,635 (19,320,919) 74,843,716
LifePath 2030 Master Portfolio 225,868,990 86,546,277 (16,033,678) 70,512,599
LifePath 2040 Master Portfolio 445,676,886 182,168,214 (40,185,127) 141,983,087
</TABLE>
4. Portfolio Securities Loaned
As of February 29, 2000, the Master Portfolios had loaned securities which
were collateralized by cash 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:
62
<PAGE>
<TABLE>
<CAPTION>
Value of Value of
Master Portfolio Securities Collateral
---------------------------------------------------------------------------------------------
<S> <C> <C>
LifePath Income Master Portfolio $ 1,892,099 $ 1,975,482
LifePath 2010 Master Portfolio 8,219,089 8,568,684
LifePath 2020 Master Portfolio 24,739,571 25,720,454
LifePath 2030 Master Portfolio 18,711,674 19,498,975
LifePath 2040 Master Portfolio 47,529,134 49,462,092
</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:
<TABLE>
<CAPTION>
For the For the
Year Ended Year Ended
February 29, February 28,
2000 1999
- ------------------------------------------------------------------------
<S> <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 4.03% 3.95%
Portfolio turnover rate 55% 66%
LifePath 2010 Master Portfolio
Ratio of expenses to average
net assets 0.55% 0.55%
Ratio of net investment income
to average net assets 3.20% 3.12%
Portfolio turnover rate 49% 38%
LifePath 2020 Master Portfolio
Ratio of expenses to average
net assets 0.55% 0.55%
Ratio of net investment income
to average net assets 2.27% 2.30%
Portfolio turnover rate 43% 36%
LifePath 2030 Master Portfolio
Ratio of expenses to average
net assets 0.55% 0.55%
Ratio of net investment income
to average net assets 1.72% 1.74%
Portfolio turnover rate 26% 19%
LifePath 2040 Master Portfolio
Ratio of expenses to average
net assets 0.55% 0.55%
Ratio of net investment income
to average net assets 0.99% 1.11%
Portfolio turnover rate 29% 19%
</TABLE>
63
<PAGE>
Independent Auditors' Report
To the Interestholders and Board of Trustees
Master Investment Portfolio:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments of the LifePath Income Master Portfolio
(formerly LifePath 2000 Master Portfolio), LifePath 2010 Master Portfolio,
LifePath 2020 Master Portfolio, LifePath 2030 Master Portfolio and LifePath 2040
Master Portfolio (five of the portfolios comprising Master Investment Portfolio)
as of February 29, 2000, and the related statements of operations for the year
then ended and the statements of changes in net assets for each of the years in
the two-year period then ended. These financial statements are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 29, 2000 by correspondence with the custodian. As to securities
purchased but not yet received, we performed other appropriate auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the aforementioned
portfolios of Master Investment Portfolio as of February 29, 2000, the results
of their operations for the year then ended and the changes in their net assets
for each of the years in the two-year period then ended, in conformity with
generally accepted accounting principles.
/s/ KPMG LLP
San Francisco, California
April 7, 2000
64
