Report of Independent Accountants
To the Trustees of Farmers Investment Trust:
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Investment Company
Act of 1940, about Farmers Investment Trust's (comprised of Growth Portfolio,
Balanced Portfolio, Income Portfolio, Income with Growth Portfolio, and Growth
with Income Portfolio (the "Portfolios")) compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940
(as interpreted in the Response of the Office of the Chief Counsel, Division of
Investment Management, Ref. No. 92-237-CC) (the "Act") as of August 10, 1999,
April 6, 2000 and April 30, 2000. Management is responsible for the Portfolios'
compliance with those requirements. Our responsibility is to express an opinion
on management's assertion about the Portfolios' compliance based on our
examinations.
Our examinations were conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants and,
accordingly, included examining, on a test basis, evidence about the Portfolios'
compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. Our August 10, 1999 and April 6, 2000
examinations were made without prior notice to the Portfolios. Included among
our procedures were the following tests performed as of August 10, 1999, April
6, 2000 and April 30, 2000, and with respect to agreement of security purchases
and sales, for the period from April 30,1999 (date of our last examination)
through August 10, 1999, the period from August 10, 1999 through April 6, 2000
and the period from April 6, 2000 through April 30, 2000:
o Confirmation of the number of shares of beneficial interest of the
affiliated underlying funds owned by each Portfolio and held by a
securities depository which uses the book entry method of accounting
for securities (i.e. Kemper Service Corp.).
o Confirmation of the number of shares of beneficial interest of the
unaffiliated underlying funds owned by each Portfolio and held by a
securities depository which uses the book entry method of accounting
for securities (i.e. Investors Fiduciary Trust Company and
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Janus Service Corp.).
o Reconciliation of all such shares of beneficial interest to the books
and records of the Portfolios.
o Agreement of security purchases and sales by the Portfolios of shares
of beneficial interest of the underlying funds since our last report
from the books and records of the Portfolios to confirmations from
Kemper Service Corp., Investors Fiduciary Trust Company and Janus
Service Corp.
We believe that our examinations provide a reasonable basis for our opinion. Our
examinations do not provide a legal determination of the Portfolios' compliance
with specified requirements.
In our opinion, management's assertion that the Portfolios enumerated above were
in compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of
the Investment Company Act of 1940 (as interpreted in the Response of the Office
of the Chief Counsel, Division of Investment Management, Ref. No. 92-237-CC) as
of August 10, 1999, April 6, 2000 and April 30, 2000, with respect to securities
reflected in the investment accounts of the Portfolios is fairly stated, in all
material respects.
This report is intended solely for the information and use of the Trustees,
management of Farmers Investment Trust and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone other than
the specified parties.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 4, 2000
