<PAGE> 1
--------------------------
PLAN INVESTMENT FUND, INC.
Semi-Annual Report
June 30, 1996
Administrator:
[LOGO]
<PAGE>
<PAGE> 2
PLAN INVESTMENT FUND, INC.
PRESIDENT'S LETTER
- ---------------------------------------------------------------------------
August 9, 1996
Fellow Investors:
On behalf of the Board of Trustees, I am pleased to submit the 1996 Semi-
Annual Report for Plan Investment Fund, Inc. The fund has experienced
good growth in the first six months of the year, reaching a record high
asset level of over $1 billion in April. In addition, average assets have
increased 17% this year to just under $860 million.
Market psychology has changed dramatically in the past six months. The
last time the Federal Reserve changed the Fed funds rate was last January,
when they lowered the rate 25 basis points. At that time conventional
wisdom held that 1996 would see a continuation of the 1995 bond market
rally. Instead we have seen the bond market fall on fears of renewed
inflation and the higher interest rates that are a byproduct of traditional
anti-inflationary monetary policies.
Most bond portfolios produced negative total returns for the first half of
1996. The very short maturity policies of the Plan Investment Fund
portfolios protected them from the havoc of the 1996 bond market. The
Government/REPO Portfolio, with a one business day maturity policy that
quickly reflects changing interest rates, produced the highest return of the
three portfolios during the past six months. The Money Market Portfolio
produced competitive returns versus other money market funds and the
Short-Term Portfolio, which has the longest average maturity policy,
continued its unbroken record of positive quarterly returns.
Plan Investment Fund has fared well in a difficult market environment. The
portfolios continue to be dependable, high quality investment vehicles
operated in a cost effective manner.
Sincerely,
/S/ PHIL
----
Philip A. Goss
President and
Chief Executive Officer
<PAGE>
<PAGE> 3
- ---------------------------------------------------------------------------
COMPARATIVE PERFORMANCE: ANNUALIZED TOTAL RETURN
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Periods Ended Three Six One From
June 30, 1996 Months Months Year Inception
- ------------- ------ ------ ----- ---------
<S> <C> <C> <C> <C>
PIF Government/REPO Portfolio 5.36% 5.41% 5.69% 5.72%
Donoghues Inst. Money Market Avg. 5.05% 5.12% 5.38% 5.41%
Repurchase Agreements 5.40% 5.47% 5.76% 5.79%
PIF Money Market Portfolio 5.26% 5.34% 5.63% 6.06%
Donoghues Inst. Money Market Avg. 5.05% 5.12% 5.38% 5.86%
Repurchase Agreements 5.40% 5.47% 5.76% 6.05%
PIF Short-Term Portfolio 4.65% 4.36% 5.49% 6.18%
6 Month Treasury Bill 5.26% 5.34% 5.66% 5.94%
1 - 3 Year Treasury Note 4.10% 2.70% 5.45% 7.20%
</TABLE>
* Inception dates
---------------
6/01/95: Government/REPO Portfolio
3/11/87: Money Market Portfolio, Short-Term Portfolio
- ---------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Closing Closing
Average Closing Average Average
Portfolio/Month Yield Price Maturity Quality
- --------------- ------- ------- -------- -------
<S> <C> <C> <C> <C>
Government/REPO Portfolio
April 5.24% $1.00 1 Day A1+
May 5.21% $1.00 3 Days A1+
June 5.29% $1.00 1 Day A1+
Money Market Portfolio
April 5.14% $1.00 52 Days A1+
May 5.15% $1.00 62 Days A1
June 5.18% $1.00 58 Days A1+
Short-Term Portfolio
April 5.40% $9.95 6.4 Months AA+
May 5.34% $9.94 4.8 Months AA+
June 5.38% $9.94 6.0 Months AA+
</TABLE>
<PAGE>
<PAGE> 4
Statement of Net Assets
(Unaudited)
GOVERNMENT/REPO PORTFOLIO
June 30, 1996
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
- -------------------------------------------------------------------------------
GOVERNMENT AGENCY OBLIGATIONS 80.9%
- -------------------------------------------------------------------------------
Federal Home Loan Bank
Discount Note
5.52% (7/01/96) $63,000 $63,000,000
(Cost $63,000,000) -----------
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 19.6%
- -------------------------------------------------------------------------------
Morgan Stanley & Co.
5.585% (7/01/96)
(Collateralized by $15,235,000 U.S.
Treasury Note, 6.00%; due 6/30/96;
Market Value $15,686,479 15,300 15,300,000
(Cost $15,300,000) ----------
TOTAL INVESTMENTS IN SECURITIES..... 100.5% 78,300,000
(Cost $78,300,000*)
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.5%) (388,366)
------- ----------
NET ASSETS (Applicable to 77,911,634
PCs outstanding) 100.0% $77,911,634
======= ==========
NET ASSET VALUE, offering and
redemption price per PC
($77,911,634 / 77,911,634 PCs) $1.00
====
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE> 5
Statement of Net Assets
(Unaudited)
MONEY MARKET PORTFOLIO
June 30, 1996
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
- ------------------------------------------------------------------------------
GOVERNMENT AGENCY OBLIGATIONS 8.6%
- ------------------------------------------------------------------------------
Federal Home Loan Bank
Discount Note
5.52% (7/01/96) $19,000 $19,000,000
Student Loan Marketing Association
Variable Rate Note
5.39% (7/02/96) 25,000 25,000,000
----------
TOTAL GOVERNMENT AGENCY OBLIGATIONS 44,000 000
(Cost $44,000,000) ----------
- ------------------------------------------------------------------------------
BANKERS' ACCEPTANCES 0.4%
- ------------------------------------------------------------------------------
Citibank, N.A.
5.23% (9/20/96) 2,000 1,976,465
(Cost $1,976,465) ---------
- ------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 16.2%
- ------------------------------------------------------------------------------
Bank of America, NT & SA
5.36% (9/26/96) 14,000 14,000,000
Bank of New York
5.33% (9/27/96) 12,000 11,998,721
First National Bank of Chicago
5.51% (11/07/96) 10,000 9,999,650
LaSalle National Bank
5.48% (9/11/96) 28,000 28,000,000
NBD Bank, NA
5.47% (9/12/96) 19,000 19,000,000
----------
TOTAL CERTIFICATES OF DEPOSIT 82,998,371
(Cost $82,998,371) ----------
</TABLE>
<PAGE>
<PAGE> 6
Statement of Net Assets
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
- ------------------------------------------------------------------------------
COMMERCIAL PAPER 59.0%
- ------------------------------------------------------------------------------
BANKS.......................... 21.1%
Chase Manhattan Corp.
5.325%-5.35% (7/09/96-8/07/96) $28,100 $ 28,027,911
Citicorp
5.55% (7/01/96) 22,000 22,000,000
Morgan (J.P.) & Co.
4.88% (8/20/96) 25,000 24,830,555
National City Corporation
5.22%-5.25% (8/08/96-8/28/96) 33,500 33,285,932
-----------
108,144,398
-----------
CHEMICALS ...................... 1.2%
Monsanto Co.
5.30% (9/27/96) 6,200 6,119,675
-----------
COMMUNICATION EQUIPMENT.......... 3.8%
Siemens Corp.
5.38% (9/11/96) 20,000 19,784,800
-----------
ELECTRIC SERVICES................ 5.8%
Carolina Light & Power Company
5.215% (9/27/96) 30,000 29,617,566
-----------
FINANCE LESSORS.................. 2.9%
General Electric Capital Corp.
5.31% (10/24/96) 15,000 14,745,563
-----------
</TABLE>
<PAGE>
<PAGE> 7
Statement of Net Assets
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
MALT BEVERAGES.................... 2.7%
Anheuser-Busch, Inc.
5.30% (10/10/96) $14,000 $ 13,791,828
-----------
PETROLEUM REFINING................ 4.5%
Koch Industries, Inc.
5.55% (7/01/96) 23,000 23,000,000
-----------
PHARMACEUTICAL ................... 5.0%
Schering-Plough Corporation
5.408% (12/02/96) 26,500 25,886,963
-----------
SERVICES - HEALTH SERVICES........ 1.8%
Kaiser Foundation Hospitals
5.20% (7/02/96) 9,500 9,498,628
-----------
SHORT-TERM BUSINESS CREDIT......... 10.2%
American Express Credit Corp.
5.29% (10/11/96) 15,000 14,775,175
Corporate Asset Funding, Inc.
5.32 (9/04/96) 10,000 9,903,944
Transamerica Finance Corp.
5.23%-5.30% (9/26/96-10/15/96) 20,985 20,690,741
Xerox Credit Corp.
5.25% (12/16/96) 7,000 6,828,500
-----------
52,198,360
-----------
TOTAL COMMERCIAL PAPER 302,787,781
(Cost $302,787,781) -----------
</TABLE>
<PAGE>
<PAGE> 8
Statement of Net Assets
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
- ------------------------------------------------------------------------------
VARIABLE RATE OBLIGATIONS 10.9%
- ------------------------------------------------------------------------------
SECURITY BROKERS & DEALERS.........
Bear Stearns Companies Inc.
5.55% (8/16/96) $31,000 $31,000,000
Goldman Sachs Group, LP
5.625% (8/06/96) 25,000 25,000,000
----------
TOTAL VARIABLE RATE OBLIGATIONS 56,000,000
(Cost $56,000,000) ----------
- ------------------------------------------------------------------------------
FIXED RATE OBLIGATIONS 1.8%
- ------------------------------------------------------------------------------
MACHINERY & EQUIPMENT............. 0.8%
Caterpillar Inc.
7.04% (12/02/96) 4,000 4,018,990
----------
SECURITY BROKERS & DEALERS........ 1.0%
Merrill Lynch & Co.
6.05% (8/19/96) 5,000 5,000,000
----------
TOTAL FIXED RATE OBLIGATIONS 9,018,990
(Cost $9,018,990) ----------
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 3.4%
- ------------------------------------------------------------------------------
Goldman Sachs & Co.
5.65% (7/01/96) 15,000 15,000,000
(Collateralized by $15,564,553 FNMA
Mortgage Backed Pass-Through, 7.50%;
Due 6/01/26; Market Value $15,300,000)
Morgan Stanley & Co.
5.585% (7/01/96) 2,300 2,300,000
(Collateralized by $2,300,000 U.S. ----------
Treasury Note, 7.00%; Due 9/30/96;
Market Value $2,348,739)
TOTAL REPURCHASE AGREEMENTS 17,300,000
(Cost $17,300,000) ----------
</TABLE>
<PAGE>
<PAGE> 9
Statement of Net Assets
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES.. 100.3% $514,081,607
(Cost $514,081,607*)
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.3%) ( 1,288,786)
------ -----------
NET ASSETS (Applicable to
512,792,821 PCs outstanding) 100.0% $512,792,821
====== ===========
NET ASSET VALUE, offering and
redemption price per PC
($512,792,821 / 512,792,821 PCs) $1.00
====
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE> 10
Statement of Net Assets
(Unaudited)
SHORT-TERM PORTFOLIO
June 30, 1996
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
- ------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 11.3%
- ------------------------------------------------------------------------------
U.S. Treasury Notes
6.00%-7.50% (1/31/97-5/31/98) $7,535 $7,562,110
(Cost $7,519,927) ---------
- ------------------------------------------------------------------------------
GOVERNMENT AGENCY OBLIGATIONS 13.0%
- ------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation
Collateralized Mortgage Obligation
5.7875% (2/22/97) 1,368 1,369,608
Discount Notes
5.28% (7/18/96-7/19/96) 1,930 1,925,166
Gold Balloon
6.00% (11/22/97) 2,466 2,413,903
Note
7.555% (2/10/97) 1,000 1,010,310
---------
6,718,987
---------
Student Loan Marketing Association
Floating Rate Note
6.08% (7/01/96) 2,000 2,000,000
---------
TOTAL GOVERNMENT AGENCY OBLIGATIONS 8,718,987
(Cost $8,750,415) ---------
- ------------------------------------------------------------------------------
ASSET BACKED SECURITIES 10.2%
- ------------------------------------------------------------------------------
Caterpillar Financial Asset Trust 1995-A
6.10% (9/07/96) 1,254 1,254,220
Ford Motor Credit Trust
4.30% - 5.90% (12/21/96-7/15/98) 2,659 2,645,723
Onyx Acceptance Grantor Trust
5.40% (10/03/97) 3,015 2,975,708
---------
TOTAL ASSET BACKED SECURITIES 6,875,651
(Cost $6,909,828) ---------
</TABLE>
<PAGE>
<PAGE> 11
Statement of Net Assets
SHORT-TERM PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
- ------------------------------------------------------------------------------
COMMERCIAL PAPER 48.6%
- ------------------------------------------------------------------------------
CANNED PRESERVED FRUIT........... 2.0%
Heinz (H.J.) Co.
5.30% (7/11/96) $1,325 $1,323,049
---------
CHEMICALS........................ 8.8%
Dupont (E.I.) DeNemours & Co.
5.26% (11/12/96) 3,000 2,939,948
Nalco Chemical Co.
5.35% (7/26/96) 3,000 2,988,854
---------
5,928,802
---------
ELECTRIC EQUIPMENT............... 3.0%
Emerson Electric Co.
5.25% (7/09/96) 2,000 1,997,667
---------
ELECTRIC SERVICES................ 3.4%
Indianapolis Power & Light Co.
5.33% (7/22/96) 2,305 2,297,833
---------
GRAIN PRODUCTS................... 2.9%
Kellogg Co.
5.25% (7/02/96) 1,980 1,979,706
---------
INSURANCE (LIFE)................. 4.4%
MetLife Funding Inc.
5.27% (8/16/96) 3,000 2,978,788
---------
MINERAL & ABRASIVE PRODUCTS...... 1.2%
Minnesota Mining & Mfg. Co.
5.32% (7/12/96) 800 798,700
---------
PETROLEUM REFINING............... 4.5%
Shell Oil Co.
5.35% (7/09/96) 3,000 2,996,433
---------
PHARMACEUTICAL................... 2.1%
Abbott Laboratories
5.26% (8/13/96) 1,450 1,440,738
---------
</TABLE>
<PAGE>
<PAGE> 12
Statement of Net Assets
SHORT-TERM PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
SHORT-TERM BUSINESS CREDIT....... 4.0%
Ciesco LP
5.25% (7/09/96) $2,670 $ 2,666,867
----------
SOAPS AND DETERGENTS............. 4.0%
Procter & Gamble Co.
5.33% (7/25/96) 2,680 2,670,477
----------
TELECOMMUNICATIONS............... 2.7%
Ameritech Corp.
5.28% (10/18/96) 1,820 1,790,104
----------
TRANSPORTATION................... 5.6%
United Parcel Services of America Inc.
5.25% (7/12/96) 3,800 3,793,599
----------
TOTAL COMMERCIAL PAPER 32,662,763
(Cost $32,666,350) ----------
- ------------------------------------------------------------------------------
VARIABLE RATE OBLIGATIONS 7.4%
- ------------------------------------------------------------------------------
PERSONAL CREDIT INSTITUTIONS.....
Ford Motor Credit Corp.
5.75% (8/05/96) 2,000 2,002,120
Toyota Motor Credit Corp.
5.70% (7/02/96) 3,000 2,994,990
---------
TOTAL VARIABLE RATE OBLIGATIONS 4,997,110
(Cost $5,000,000) ---------
</TABLE>
<PAGE>
<PAGE> 13
Statement of Net Assets
SHORT-TERM PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
<S> <C> <C>
- ------------------------------------------------------------------------------
FIXED RATE OBLIGATIONS 12.3%
- ------------------------------------------------------------------------------
SECURITY BROKERS & DEALERS....... 9.0%
Dean Witter, Discover and Cos.
6.00% (3/01/98) $2,000 $ 1,989,380
Smith Barney Holdings, Inc.
7.40% (11/17/96) 4,000 4,020,880
----------
6,010,260
----------
SERVICES - EQUIPMENT LEASING..... 3.3%
International Lease Finance Co.
5.37% (2/02/98) 2,250 2,219,715
----------
TOTAL FIXED RATE OBLIGATIONS 8,229,975
(Cost $8,276,262) ----------
TOTAL INVESTMENTS IN SECURITIES... 102.8% 69,046,596
(Cost $69,122,782*)
LIABILITIES IN EXCESS OF OTHER ASSETS ( 2.8%) (1,883,902)
------ ----------
NET ASSETS (Applicable to 6,753,422
PCs outstanding) 100.0% $67,162,694
===== ==========
NET ASSET VALUE, offering and redemption
price per PC ($67,162,694 / 6,753,422 PCs) $9.94
====
* Aggregate cost for Federal tax purposes.
The aggregate gross unrealized appreciation
or depreciation for all securities is as
follows: excess of value over tax cost
$61,188; excess of tax cost over value
$137,374.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE> 14
Statements of Operations
(Unaudited)
Six Months Ended June 30, 1996
<TABLE>
<CAPTION>
Government/REPO Money Market Short-Term
Portfolio Portfolio Portfolio
--------------- ------------ -----------
<S> <C> <C> <C>
INTEREST INCOME $2,585,620 $18,701,488 $2,148,075
--------- ---------- ---------
EXPENSES
Investment advisory fee 95,805 546,801 98,763
Administration fee 23,951 171,112 18,474
Custodian 10,059 36,804 5,617
Transfer agent 1,653 16,529 777
Audit 2,136 15,238 1,651
Insurance 2,087 14,858 1,614
Legal 1,118 7,962 865
Trustee expenses 1,118 7,962 715
Professional services 252 4,278 195
Printing 347 2,468 268
Service Agent 0 0 49,999
Miscellaneous 30 576 65
SEC registration fee 0 0 ( 2,029)
Fees waived (90,576) (37,436) ( 65,823)
--------- ---------- ---------
Total expenses 47,980 787,152 111,151
--------- ---------- ---------
NET INVESTMENT INCOME 2,537,640 17,914,336 2,036,924
NET REALIZED LOSS ON
SECURITIES SOLD 0 0 ( 93,018)
UNREALIZED DEPRECIATION
OF SECURITIES 0 0 (347,544)
--------- ---------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $2,537,640 $17,914,336 $1,596,362
========= ========== =========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE> 15
Statements of Changes in Net Assets
(Unaudited)
GOVERNMENT/REPO PORTFOLIO
<TABLE>
<CAPTION>
Six Months Ended Period Ended
June 30, 1996 December 31, 1995*
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,537,640 $ 1,708,753
Net realized gain (loss)
on securities sold 0 0
Net increase in net assets ----------- ------------
resulting from operations 2,537,640 1,708,753
----------- ------------
DIVIDENDS TO PARTICIPATION
CERTIFICATE HOLDERS:
From net investment income $.026
and $.034 per PC (2,537,640) (1,708,753)
----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from sale of 593,325,776 593,325,776 314,747,906
and 314,747,906 PCs
Value of 712,260 and 815,927 PCs 712,260 815,927
issued in reinvestment of dividends
Cost of 635,206,000 and 196,484,235 (635,206,000) (196,484,235)
PCs repurchased ----------- -----------
Increase (decrease) in net assets derived
from capital transactions (41,167,964) 119,079,598
----------- -----------
Total increase (decrease) in net assets (41,167,964) 119,079,598
NET ASSETS:
Beginning of period 119,079,598 0
----------- -----------
End of period $ 77,911,634 $119,079,598
=========== ===========
*From June 1, 1995 commencement of operations.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE> 16
Statements of Changes in Net Assets
(Unaudited)
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31, 1995
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 17,914,336 $ 35,136,896
Net realized gain (loss) on
securities sold 0 0
----------- -----------
Net increase in net assets
resulting from operations 17,914,336 35,136,896
----------- -----------
DIVIDENDS TO PARTICIPATION
CERTIFICATE HOLDERS:
From net investment income $.026
and $.058 per PC (17,914,336) (35,136,896)
----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from sale of 3,086,223,558
and 6,644,511,740 PCs 3,086,223,558 6,644,511,740
Value of 9,337,628 and 17,729,871 PCs
issued in reinvestment of dividends 9,337,628 17,729,871
Cost of 3,167,744,461 and
6,528,632,149 PCs repurchased (3,167,744,461) (6,528,632,149)
------------- -------------
Increase (decrease) in net assets
derived from capital transactions (72,183,275) 133,609,462
----------- -----------
Total increase (decrease) in net assets (72,183,275) 133,609,462
NET ASSETS:
Beginning of period 584,976,096 451,366,634
----------- -----------
End of period $512,792,821 $584,976,096
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE> 17
Statements of Changes in Net Assets
(Unaudited)
SHORT-TERM PORTFOLIO
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31, 1995
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,036,924 $ 5,957,302
Net realized gain (loss) on
securities sold (93,018) 35,953
Unrealized appreciation (depreciation)
of securities (347,544) 700,727
----------- ------------
Net increase in net assets
resulting from operations 1,596,362 6,693,982
----------- ------------
DIVIDENDS TO PARTICIPATION
CERTIFICATE HOLDERS:
From net investment income $.273
and $.599 per PC (2,036,924) (5,957,302)
----------- ------------
CAPITAL TRANSACTIONS:
Proceeds from sale of 1,651,554
and 2,359,181 PCs 16,500,000 23,445,783
Value of 134,087 and 411,083 PCs
issued in reinvestment of dividends 1,337,298 4,098,549
Cost of 1,423,592 and 6,773,259
PCs repurchased (14,156,382) (67,598,372)
----------- -----------
Increase (decrease) in net assets
derived from capital transactions 3,680,916 (40,054,040)
----------- -----------
Total increase (decrease) in net assets 3,240,354 (39,317,360)
NET ASSETS:
Beginning of period 63,922,340 103,239,700
----------- -----------
End of period $ 67,162,694 $ 63,922,340
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE> 18
FINANCIAL HIGHLIGHTS
(Unaudited)
GOVERNMENT/REPO PORTFOLIO
For a Participation Certificate (PC) Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months 6/1/95(1)
Ended Through
6/30/96 12/31/95
------- --------
<S> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00
---- ----
Income From Investment Operations:
Net Investment Income .026 .034
Net Realized Gain (Loss) on Investments 0 0
---- ----
Total From Investment Operations .026 .034
---- ----
Less Distributions:
Dividends to PC holders from
Net Investment Income (.026) (.034)
Distributions to PC holders from
Net Capital Gains 0 0
---- ----
Total Distributions (.026) (.034)
---- ----
Net Asset Value, End of Period $1.00 $1.00
==== ====
Total Return(3) 5.41% 5.99%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $77,912 $119,080
Ratio of Expenses to Average
Net Assets (2)(3) .10% .10%
Ratio of Net Investment Income
to Average Net Assets (3) 5.29% 5.78%
(1) From June 1, 1995 commencement of operations
(2) Without the waiver of advisory and administration fees (see Note C), the
ratio of expenses to average daily net assets would have been .29% for the
six months ended June 30, 1996 and .30% for the fiscal period ended
December 31, 1995.
(3) Annualized
</TABLE>
<PAGE>
<PAGE> 19
FINANCIAL HIGHLIGHTS
(Unaudited)
MONEY MARKET PORTFOLIO
For a Participation Certificate (PC) Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
6/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---- ---- ---- ---- ---- ----
Income From Investment Operations:
Net Investment Income .026 .058 .041 .030 .037 .060
Net Realized Gain (Loss)
on Investments 0 0 0 0 0 0
---- ---- ---- ---- ---- ----
Total From Investment Operations .026 .058 .041 .030 .037 .060
Less Distributions:
Dividends to PC holders from
Net Investment Income (.026) (.058) (.041) (.030) (.037) (.060)
Distributions to PC holders from
Net Capital Gains 0 0 0 0 0 0
---- ---- ---- ---- ---- ----
Total Distributions (.026) (.058) (.041) (.030) (.037) (.060)
---- ---- ---- ---- ---- ----
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
==== ==== ==== ==== ==== ====
Total Return (2) 5.34% 5.97% 4.21% 3.07% 3.73% 6.16%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $512,793 $584,976 $451,367 $474,838 $390,581 $642,583
Ratio of Expenses to Average
Net Assets (1)(2) .23% .24% .26% .24% .23% .25%
Ratio of Net Investment Income
to Average Net Assets (2) 5.22% 5.82% 4.15% 3.02% 3.68% 5.97%
(1) Without the waiver of advisory and administration fees (see note C), the ratios of
expenses to average daily net assets would have been .24% for the six months ended
June 30, 1996 and .25% and .24% for the fiscal periods ended December 31, 1995 and
December 31, 1992 respectively.
(2) Annualized
</TABLE>
<PAGE>
<PAGE> 20
FINANCIAL HIGHLIGHTS
(Unaudited)
SHORT-TERM PORTFOLIO
For a Participation Certificate (PC) Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
6/30/9 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.00 $ 9.93 $10.03 $10.05 $10.09 $ 9.96
----- ----- ----- ----- ----- -----
Income From Investment Operations:
Net Investment Income .273 .599 .440 .377 .443 .637
Net Realized and Unrealized
Gain (Loss) on Investments (.060) .070 (.100) (.009) (.034) .130
----- ----- ----- ----- ----- -----
Total From Investment Operations .213 .669 .340 .368 .409 .767
----- ----- ----- ----- ----- -----
Less Distributions:
Dividends to PC holders from
Net Investment Income (.273) (.599) (.440) (.377) (.443) (.637)
Distributions to PC holders from
Net Capital Gains 0 0 0 (.011) (.006) 0
----- ----- ----- ----- ----- -----
Total Distributions (.273) (.599) (.440) (.388) (.449) (.637)
----- ----- ----- ----- ----- -----
Net Asset Value, End of Period $ 9.94 $10.00 $ 9.93 $10.03 $10.05 $10.09
===== ===== ===== ===== ===== =====
Total Return (2) 4.36% 6.92% 3.46% 3.72% 4.13% 7.95%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $67,163 $63,922 $103,240 $186,808 $195,579 $94,050
Ratio of Expenses to Average
Net Assets (1) (3) .30% .30% .30% .30% .30% .30%
Ratio of Net Investment Income
to Average Net Assets (3) 5.50% 6.00% 4.29% 3.74% 4.29% 6.22%
Portfolio Turnover Rate (2)(3) 94.4% 64.8% 47.6% 34.1% 37.6% 63.8%
(1) Without the waiver of advisory, service agent and administration fees (see note C), the
ratios of expenses to average daily net assets would have been .48%, .43%, .37%, .32%,
.37% and .56% respectively, for the six months ended June 30, 1996, and for the fiscal
periods ended December 31, 1995, 1994, 1993, 1992 and 1991.
(2) Excludes security purchases with a maturity of less than one year.
(3) Annualized
</TABLE>
<PAGE>
<PAGE> 21
Notes to Financial Statements
(Unaudited)
A. Plan Investment Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as a diversified open-end regulated investment
company. The Fund consists of three separate portfolios, the Government/REPO
Portfolio, the Money Market Portfolio and the Short-Term Portfolio (the
"Portfolio(s)"). The Fund is authorized to issue five billion Participation
Certificates ("PCs"), par value $.001 per PC. The Fund presently offers three
classes of PCs as follows: the Government/REPO Portfolio - one billion PCs
authorized, the Money Market Portfolio - two billion PCs authorized and the
Short-Term Portfolio - one billion PCs authorized.
B. Significant accounting policies relating to the Fund are as follows:
Security Valuation - Government/REPO Portfolio and Money Market Portfolio:
Securities are valued under the amortized cost method, which approximates
current market value. Under this method, securities are valued at cost when
purchased and thereafter a constant proportionate amortization of any discount
or premium is recorded until maturity or sale of the security.
Security Valuation - Short-Term Portfolio: Securities for which market
quotations are readily available (other than debt securities with remaining
maturities of 60 days or less) are valued at the most recent quoted bid price
provided by investment dealers. Debt securities with remaining maturities of
60 days or less are valued on an amortized cost basis (unless the Board
determines that such basis does not represent fair value at that time).
Securities Transactions and Investment Income - Securities transactions are
recorded on the trade date. Realized gains and losses on investments sold
are recorded on the identified cost basis. Interest income is recorded on the
accrual basis.
Dividends to Participation Certificate Holders - Dividends of net investment
income of the Portfolios are declared daily and paid monthly. Dividends
payable are recorded on the dividend record date. The Short-Term Portfolio
will, subject to the use of offsetting capital loss carry-forwards, distribute
net realized short- and long-term capital gains, if any, once each year.
Federal Income Taxes - No provision is made for federal taxes as it is each
Portfolio's intention to continue to qualify as a regulated investment company
and to make the requisite distributions to Participation Certificate Holders
which will be sufficient to relieve each Portfolio from all, or substantially
all, federal income and excise taxes. At June 30, 1996 the Short-Term
Portfolio had capital loss carry-forwards amounting to $871,994 that expire in
2002. These loss carry-forwards are available to offset possible future
capital gains of the Short-Term Portfolio.
Repurchase Agreements - Each Portfolio may agree to purchase money market
instruments from financial institutions such as banks and broker-dealers
subject to the seller's agreement to repurchase them at an agreed upon date and
price ("repurchase agreements"). Collateral for the repurchase agreement is
required on a daily basis to maintain the value of the securities subject to
the agreement at not less than the repurchase price. The seller under a
repurchase agreement is required on a daily basis to maintain the value of the
securities subject to the agreement at not less than the repurchase price.
The agreement is conditioned upon the collateral being deposited under the
Federal Reserve book entry system or held in a separate account by the Fund's
custodian or an authorized securities depository.
Estimated Maturities - The maturity of collateralized mortgage obligations and
other asset backed securities may vary due to prepayments of principal. The
maturity dates for these securities are estimates based on historic prepayment
factors.
Variable Rate Obligations - For variable rate obligations, the interest rate
presented is as of June 30, 1996 and the maturity shown is the date of the next
interest readjustment.
Management Estimates - The preparation of financial statements requires the use
of management estimates.
<PAGE>
<PAGE> 22
C. The Fund has entered into agreements for advisory, administrative, service
agent, custodian and transfer agent services as follows:
Government/REPO Portfolio and Money Market Portfolio - PNC Institutional
Management Corporation ("PIMC"), an indirectly wholly owned subsidiary of PNC
Bank, National Association ("PNC Bank"), serves as the Portfolios' investment
advisor and service agent. As compensation for its services the Portfolios pay
PIMC a fee, computed daily and paid monthly, at the following rate: .20% of
the first $250 million, .15% of the next $250 million, .12% of the next $250
million, .10% of the next $250 million, and .08% of amounts in excess of
$1 billion.
Short-Term Portfolio - Neuberger & Berman ("N&B"), a New York limited
partnership, serves as the Portfolio's investment advisor. As compensation for
its services, the Portfolio pays N&B a fee, computed daily and paid monthly, at
the following rate: .30% of the first $50 million, .20% of the next $50
million, .15% of the next $150 million, and .10% of amounts in excess of $250
million.
Health Plans Capital Services Corp. ("CSC") serves as the Fund's administrator
and acts generally in a supervisory capacity with respect to the Fund's overall
operations and relations with holders of PCs. As compensation for its services
each Portfolio pays CSC a fee, computed daily and payable monthly at an annual
rate not to exceed .05% of the average daily net assets of each of the Fund's
Portfolios.
PNC Bank acts as custodian of the Fund's assets and PFPC Inc. ("PFPC"), an
affiliate of PNC Bank, acts as the Fund's transfer agent and dividend
disbursing agent. In addition, PIMC serves as the Short-Term Portfolio service
agent. PNC Bank, PIMC and PFPC receive fees from the Fund for serving in these
capacities.
PIMC and N&B have agreed contractually to reduce their advisory fees otherwise
payable to them in 1996 by the Money Market Portfolio and the Short-Term
Portfolio, respectively, to the extent necessary to reduce the ordinary
operating expenses of both Portfolios individually so that they do not exceed
0.30 of one percent (0.30%) of each Portfolio's average net assets for the
year. Under these contractual agreements, N&B waived $48,056 of such fees for
the period ended June 30, 1996. PIMC voluntarily waived $14,505 of service
agent fees and CSC voluntarily waived $3,262 of administrator fees payable by
the Short-Term Portfolio during this period. In addition, PIMC voluntarily
waived $28,077 and $83,794 of advisory fees and CSC voluntarily waived $9,359
and $6,782 of administrator fees payable by the Money Market Portfolio
and Government/REPO Portfolio, respectively, during this period.
D. At June 30, 1996, net assets consisted of:
Government/REPO Money Market Short-Term
Portfolio Portfolio Portfolio
--------------- ------------ -----------
Capital paid in.................. $77,911,634 $512,792,821 $68,203,892
Accumulated realized gain (loss)
on security transactions....... - - (965,012)
Net unrealized depreciation of
investments.................... - - ( 76,186)
---------- ----------- ----------
$77,911,634 $512,792,821 $67,162,694
========== =========== ==========
E. Short-Term Portfolio purchases and sales of investment securities, other
than short-term investments, were $21,532,021 and $44,768,390 respectively, and
purchases and sales of U.S. Government securities were $10,317,147 and
$25,166,617 respectively, for the period ended June 30, 1996.
<PAGE>
<PAGE> 23
Annual Meeting of Participation Certificate Holders
(Unaudited)
The 1996 Plan Investment Fund, Inc. Annual Meeting of Participation Certificate
holders was held on April 18, 1996. At this meeting the Participation
Certificate holders elected the slate of Trustee nominees recommended by the
Board of Trustees and ratified the selection of Coopers & Lybrand L.L.P. as the
independent certified public accountants for the fiscal year ending
December 31, 1996. A total of 699,249,451.218 Participation Certificates,
representing 93.6% of the Participation Certificates eligible to be voted at
the meeting, were voted as follows:
For Against Abstain
--- ------- -------
Election of Trustee nominees 699,249,451.218 0 0
Ratification of independent
certified public accountants 699,249,451.218 0 0
<PAGE>
<PAGE> 24
--------------------------
PLAN INVESTMENT FUND, INC.
676 N. St. Clair
Chicago, IL 60611
(312) 440-6372
TRUSTEES
--------
Albert F. Antonini David M. Murdoch
President and Executive Vice President
Chief Executive Officer Blue Cross and Blue Shield
Blue Cross and Blue Shield Association
of Central New York
Ralph S. Rhoades
Philip A. Goss Vice Chairman and
President and Chief Executive Officer
Chief Executive Officer Blue Cross and Blue Shield
Plan Investment Fund, Inc. of Oklahoma
Health Plans Capital
Services Corp. Donald P. Sacco
President and
Gene Holcomb Chief Operating Officer
President Blue Cross and Blue Shield
Blue Cross and Blue Shield of Oregon
of Tennessee
Thomas J. Ward
Steven L. Hooker President and
Chief Financial Officer Chief Executive Officer
The Benchmark Group Blue Cross of Northeastern
Pennsylvania
William M. Lowry
President and Sherman M. Wolff
Chief Executive Officer Senior Vice President, Finance and Sales
Blue Cross of Western Blue Cross and Blue Shield
Pennsylvania of Illinois
INVESTMENT ADVISORS
-------------------
GOVERNMENT/REPO PORTFOLIO SHORT-TERM PORTFOLIO
and MONEY MARKET PORTFOLIO --------------------
-------------------------- Neuberger & Berman
PNC Institutional Management Corporation New York, New York
Wilmington, Delaware
<PAGE>
<PAGE> 25
EDGAR Appendix
This appendix describes components of the printed version of this report
that do not translate into a format acceptable to the EDGAR system.
The cover of the printed version of this report includes a logo of Health
Plans Capital Services Corp., the administrator of Plan Investment Fund, Inc.
The logo includes the full legal name and address of the administrator and
abbreviated initials of the administrator, "CSC", enclosed in a box beneath
a line bar.
A header featuring the Plan Investment Fund, Inc. logo appears at the top of
pages 4, 6, 8, 10, 12, 14, 16, 18, 20 and 22. The logo includes the
abbreviated initials of the fund, "PIF", enclosed in a box beneath a line bar.