<PAGE> 1
- --------------------------------------------------------------------------------
PLAN INVESTMENT FUND, INC.
Semi-Annual Report
June 30, 1999
ADMINISTRATOR:
--------------
[BCS logo enclose]
BCS FINANCIAL SERVICES CORPORATION
676 N. St. Clair, Chicago, IL 60611
(312) 951-9841
<PAGE> 2
- --------------------------------------------------------------------------------
PLAN INVESTMENT FUND, INC.
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
August 5, 1999
Fellow Investors:
BCS Financial Services Corporation, on behalf of the Board of Trustees, presents
the 1999 Semi-Annual Report for Plan Investment Fund, Inc. As you know the Board
of Trustees selected BCS to administer the Plan Investment Fund beginning on
April 1, 1999. Because we are ever sensitive to customizing services to Plans'
special needs, we are offering this service in a way that allows it to proceed
smoothly and insure that all requirements are being met. Our staff is staying in
touch with everyone through letters, phone calls and personal visits. The
transition is a success.
I would like to recognize the Trustees for their diligence, suggestions and time
spent in support of the administrator review and selection process. By choosing
BCS as the administrator, the Board confirmed their confidence in our
performance and the level of service we provide to the Blue Plans.
Plan Investment Fund continues to meet and exceed its benchmarks while
maintaining a very high credit quality rating. Plan Investment Fund was designed
for the exclusive use of the Blue Plans and their affiliates. The Plan
Investment Fund returns continue to be very competitive as a result of the
excellent management of the assets and the low administrative costs. We fully
intend to maintain this strategy while continuing to explore any opportunities
to improve the value of Plan Investment Fund for the investors.
The first half of 1999 was the tale of two quarters. The first quarter was
relatively calm while the second quarter was marked by increasing rates along
the entire yield curve. These increases were spurred by investors concerns that
the continuing strength of the economy will eventually lead to increasing
inflation. The Federal Reserve is also concerned and raised interest rates by 25
basis points. Speculation continues that further rate increases are inevitable.
With this type of environment the Government/REPO Portfolio provides a logical
place for investors to place their transactional funds. Investors can be assured
of receiving very competitive overnight rates while simultaneously managing
their cash flow with one simple phone call.
I encourage you to look to the Plan Investment Fund portfolios for all of your
short term investment needs designed specifically for the Blues System. We look
forward to serving you.
Sincerely,
Edward J. Baran
President and Chief Executive Officer
<PAGE> 3
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
COMPARATIVE PERFORMANCE: ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
Periods Ended Three Six One From
June 30,1999 Months Months Year Inception*
-------- -------- -------- ----------
<S> <C> <C> <C> <C>
Government/REPO 4.82% 4.82% 5.08% 5.47%
Portfolio
Donoghues Inst. 4.57% 4.61% 4.85% 5.20%
Money Market Avg.
Repurchase 4.82% 4.82% 5.07% 5.46%
Agreements
Money Market 4.78% 4.83% 5.08% 5.89%
Portfolio
Donoghues Inst. 4.57% 4.61% 4.85% 5.68%
Money Market Avg.
Repurchase 4.82% 4.82% 5.07% 5.82%
Agreements
Short-Term 4.15% 4.18% 5.12% 6.03%
Portfolio
6 Month 4.65% 4.66% 4.92% 5.77%
Treasury Bill
1 - 3 Year 2.31% 2.38% 5.08% 6.95%
Treasury Note
Index
</TABLE>
* Inception dates:
6/01/95 - Government/REPO Portfolio;3/11/87 - Money Market and Short-Term
Portfolios
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS
- --------------------------------------------------------------------------------
Closing Closing
Average Closing Average Average
Portfolio/Month Yield Price Maturity Quality
------- ------- ---------- ----------
<S> <C> <C> <C> <C>
Government/REPO
Portfolio
April 4.73% $1.00 3 Days A1+
May 4.72% $1.00 1 Day A1+
June 4.69% $1.00 1 Day A1+
Money Market
Portfolio
April 4.70% $1.00 68 Days A1+
May 4.68% $1.00 69 Days A1+
June 4.67% $1.00 69 Days A1+
Short-Term
Portfolio
April 4.92% $9.97 7.6 Months AA+
May 4.90% $9.96 8.0 Months AA+
June 4.81% $9.96 7.6 Months AA+
</TABLE>
<PAGE> 4
Statement of Net Assets
(Unaudited)
GOVERNMENT/REPO PORTFOLIO
June 30, 1999
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
------------ -------------- -------------
- -------------------------------------------------------------------------------
GOVERNMENT AGENCY OBLIGATIONS 86.6%
- -------------------------------------------------------------------------------
Student Loan Marketing
Association
Discount Notes
4.60% (7/01/99)
(Cost $115,000,000) $115,000 $ 115,000,000
-------------
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 13.8%
- -------------------------------------------------------------------------------
Morgan Stanley & Co.
5.90% (7/01/99)
To be repurchased at
$18,302,999.17
(Collateralized by
$18,525,000 U.S.
Treasury
Notes, 6.25%; due 5/31/00;
Market Value $18,761,009)
(Cost $18,300,000) 18,300 18,300,000
-------------
TOTAL INVESTMENTS IN SECURITIES 100.4% 133,300,000
(Cost $133,300,000*)
LIABILITIES IN EXCESS OF OTHER (0.4%) (503,299)
ASSETS -------- -------------
NET ASSETS (Applicable to
132,796,701 PCs outstanding) 100.0% $ 132,796,701
======== =============
NET ASSET VALUE, offering and
redemption price per PC
($132,796,701/132,796,701 PCs) $ 1.00
=============
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
<PAGE> 5
Statement of Net Assets
(Unaudited)
MONEY MARKET PORTFOLIO
June 30, 1999
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
----------- -------- -------
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 13.6%
- --------------------------------------------------------------------------------
DOMESTIC CERTIFICATES OF DEPOSIT
First National Bank of Chicago
4.92% (7/06/99) $ 15,000 $ 15,000,000
First Tennessee Bank
5.02% (9/13/99)
15,000 15,000,000
NationsBank
5.00% (1/06/00)
15,000 14,998,501
-------------
TOTAL CERTIFICATES OF DEPOSITS
(Cost $44,998,501) 44,998,501
-------------
- --------------------------------------------------------------------------------
COMMERCIAL PAPER 49.4%
- --------------------------------------------------------------------------------
ASSET BACKED SECURITIES 4.5%
CXC Inc.
4.90% (11/10/99) 15,000 14,730,500
-------------
BANKS 4.5%
Wells Fargo & Co.
4.8799% (8/25/99) 15,000 14,888,168
-------------
LIFE INSURANCE 10.5%
American General Corp.
4.78% (8/10/99) 5,000 4,973,444
Prudential Funding Corp.
4.81% (8/24/99) 15,000 14,891,775
USAA Capital Corp.
4.79% (8/26/99) 15,000 14,888,233
-------------
34,753,452
-------------
<PAGE> 6
Statement of Net Assets
MONEY MARKET PORTFOLIO
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
----------- ------- ---------------
MISCELLANEOUS BUSINESS CREDIT 6.0%
National Rural Utilities
4.82% (7/22/99) $ 20,000 $ 19,943,767
---------------
MISCELLANEOUS MANUFACTURING 4.4%
Fortune Brands, Inc.
4.81% (8/16/99) 5,000 4,969,269
5.20% (2/11/00 10,000 9,675,000
---------------
14,644,269
---------------
PHARMACEUTICAL PREPARATIONS 4.5%
Johnson & Johnson
4.78% (10/04/99) 15,000 14,810,792
---------------
SERVICES - AMUSEMENTS & RECREATION 4.5%
Walt Disney Co.
4.89% (9/14/99) 15,000 14,847,188
---------------
SERVICES - EQUIPMENT RENT & LEASE 3.0%
International Lease Finance
4.80% (9/13/99) 10,000 9,901,333
---------------
SHORT-TERM BUSINESS CREDIT 7.5%
American Express Credit Corp.
4.80% (9/27/99) 15,000 14,824,000
Paccar Financial Corp.
5.06% (9/16/99) 10,000 9,891,772
---------------
24,715,772
---------------
TOTAL COMMERCIAL PAPER
(Cost $163,235,241) 163,235,241
---------------
<PAGE> 7
Statement of Net Assets
MONEY MARKET PORTFOLIO
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
----------- -------- --------------
- --------------------------------------------------------------------------------
VARIABLE RATE OBLIGATIONS 28.7%
- --------------------------------------------------------------------------------
ASSET BACKED SECURITIES 6.0%
SMM Trust Series 1999E
4.9825% (8/23/99) $ 20,000 $ 20,000,000
--------------
BANKS 4.5%
Key Bank, N.A.
5.035% (9/14/99) 15,000 14,991,551
--------------
BEVERAGES 4.6%
Pepsico
4.8375% (8/19/99) 15,000 14,997,728
--------------
CHEMICALS & ALLIED PRODUCTS 4.5%
Dow Chemical Co.
5.0437% (9/15/99) 15,000 14,996,077
--------------
MISCELLANEOUS BUSINESS
CREDIT INSTITUTIONS 4.6%
John Deere Capital Corp.
5.0812% (9/10/99) 15,000 15,001,605
--------------
PETROLEUM REFINING 4.5%
Texaco Capital, Inc.
4.845% (8/04/99 15,000 14,987,608
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $94,974,569) 94,974,569
--------------
<PAGE> 8
Statement of Net Assets
MONEY MARKET PORTFOLIO
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
----------- -------- -------------
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 8.4%
- -------------------------------------------------------------------------------
Morgan Stanley & Co.
5.90% (7/01/99)
To be repurchased at $27,904,572.50
(Collateralized by $28,110,000 U.S.
Treasury Notes, 6.25%; due on 5/31/00;
Market Value $28,468,121)
(Cost $27,900,000) $ 27,900 $ 27,900,000
-------------
TOTAL INVESTMENTS IN SECURITIES 100.1% 331,108,311
(Cost $331,108,311*)
LIABILITIES IN EXCESS OF OTHER ASSETS (0.1%) (390,036)
------- -------------
NET ASSETS (Applicable to 330,721,884
PCs outstanding) 100.0% $ 330,718,275
======= =============
NET ASSET VALUE, offering and
redemption price per PC
($330,718,275/330,721,884 PCs) $ 1.00
=============
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
<PAGE> 9
STATEMENT OF NET ASSETS
(Unaudited)
SHORT-TERM PORTFOLIO
June 30, 1999
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
----------- ----------- --------------
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 4.5%
- ----------------------------------------------------------------------------------------------
U.S. Treasury Notes
5.375% (1/31/00)
(Cost $2,508,464) $ 2,500 $ 2,504,778
--------------
- ----------------------------------------------------------------------------------------------
GOVERNMENT AGENCY OBLIGATIONS 29.1%
- ----------------------------------------------------------------------------------------------
Federal Farm Credit Bank Discount Notes
4.50% (7/01/99) 485 485,000
--------------
Federal Home Loan Bank Bonds
4.97% (2/16/00)
3,000 2,991,443
Federal Home Loan Bank Discount Notes
4.71% (1/25/00) 5,450 5,300,974
--------------
8,292,417
--------------
Federal Home Loan Mortgage Corporation
Discount Notes
4.70% (9/09/99) 345 341,802
4.68% (10/08/99) 840 829,080
4.78% (11/02/99) 4,920 4,838,342
--------------
6,009,224
--------------
Federal Home Loan Mortgage Corporation
Gold Balloon
6.50% (10/31/99) 1,512 1,500,292
--------------
TOTAL GOVERNMENT AGENCY OBLIGATIONS
(Cost $16,297,609) 16,286,933
--------------
</TABLE>
<PAGE> 10
STATEMENT OF NET ASSETS
SHORT-TERM PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
----------- ------- --------------
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES 8.6%
- ----------------------------------------------------------------------------------------------
Case Equipment Loan Trust
5.285% (12/31/99) $ 3,000 $ 2,987,028
Honda Auto Receivables Grantor Trust 1997-A
5.85% (8/31/99) 431 430,225
Union Acceptance Corp.
5.44% (10/01/99) 1,425 1,423,034
--------------
TOTAL ASSET BACKED SECURITIES
(Cost $4,854,863) 4,840,287
--------------
- ----------------------------------------------------------------------------------------------
COMMERCIAL PAPER 21.0%
- ----------------------------------------------------------------------------------------------
BUSINESS SERVICES 3.5%
United Parcel Service
4.73% (7/01/99)
1,975 1,975,000
-----------------
CREDIT 4.4%
American Express Credit Corp.
4.78% (10/19/99)
2,500 2,463,154
-----------------
FINANCE 3.5%
Prudential Funding
4.81% (11/16/99)
2,000 1,962,856
-----------------
FINANCIAL SERVICES 5.2%
General Electric Capital Corp.
4.75% (11/10/99)
3,000 2,947,354
-----------------
FINANCIAL 4.4%
USAA Capital Corp.
4.89% (9/08/99)
2,465 2,441,562
-----------------
TOTAL COMMERCIAL PAPER
(Cost $11,791,256) 11,789,926
-----------------
</TABLE>
<PAGE> 11
STATEMENT OF NET ASSETS
-----------------------
SHORT-TERM PORTFOLIO
--------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
------------ --------- -----------------
<S> <C> <C> <C>
- --------------------------------------------------------------------------------
VARIABLE RATE OBLIGATIONS 3.6%
- --------------------------------------------------------------------------------
FINANCE
Goldman Sachs Group
5.0275% (7/26/99)
(Cost $1,999,755) $ 2,000 $ 2,001,466
-----------------
- --------------------------------------------------------------------------------
MEDIUM TERM NOTES 32.9%
- --------------------------------------------------------------------------------
AUTOMOBILES 5.4%
General Motors Acceptance Corp.
5.85% (4/06/00) 3,000 3,011,252
-----------------
CHEMICALS 5.3%
E.I. Dupont
4.998% (4/14/00) 3,000 2,985,000
-----------------
CREDIT 6.2%
Associates Corp. of North America
6.375% (6/15/00) 1,500 1,511,956
5.50% (2/15/02) 2,000 1,960,000
-----------------
3,471,956
-----------------
FINANCE 10.3%
Ford Motor Credit
6.85% (8/15/00) 3,000 3,026,057
International Lease Finance Corp.
6.63% (6/01/00) 740 745,014
6.21% (2/01/01) 1,000 1,001,250
Prudential Funding Corp.
5.96% (4/27/00) 1,000 1,000,000
-----------------
5,772,321
-----------------
</TABLE>
<PAGE> 12
STATEMENT OF NET ASSETS
SHORT-TERM PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
---------------- -------------- -----------------
<S> <C> <C> <C>
FINANCIAL SERVICES 5.7%
Citicorp
6.70% (4/30/01) $ 1,170 $ 1,180,238
Morgan Stanley, Dean Witter
5.89% (3/20/00)
2,000 2,004,035
-----------------
3,184,273
-----------------
TOTAL MEDIUM TERM NOTES
(Cost $18,510,808) 18,424,802
-----------------
TOTAL INVESTMENTS IN SECURITIES 99.7% 55,848,192
(Cost $55,962,755*)
OTHER ASSETS IN EXCESS OF LIABILITIES 0.3% 155,098
--------------- -----------------
NET ASSETS (Applicable to 5,624,218
PCs outstanding) 100.0% $ 56,003,290
=============== =================
NET ASSET VALUE, offering and
redemption price per PC
($56,003,290/5,624,218 PCs) $ 9.96
=================
</TABLE>
* 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
$9,072; excess of tax cost over value
$123,635.
See accompanying notes to financial statements.
<PAGE> 13
Statements of Operations
(Unaudited)
Six Months Ended June 30, 1999
<TABLE>
<CAPTION>
Government/REPO Money Market Short-Term
Portfolio Portfolio Portfolio
--------------------- ------------------- ------------------
<S> <C> <C> <C>
INTEREST INCOME $ 3,784,041 $ 11,206,117 $ 1,837,563
EXPENSES
Investment advisory fee
157,252 398,378 95,453
Administration fee
39,313 112,357 17,668
Custodian
13,726 24,355 6,455
Audit
5,926 12,001 1,651
Insurance
3,537 9,883 1,493
Legal
14,093 14,627 3,102
Transfer agent
5,635 5,657 600
Trustee expenses
1,605 3,600 300
Professional services
5,865 2,400 -
Printing
1,440 2,303 347
Service agent
- - 50,000
Miscellaneous
1,333 1,845 170
Fees waived
(171,099) (906) (71,229)
--------------------- ------------------- ------------------
Total Expenses
78,626 586,500 106,010
NET INVESTMENT INCOME
3,705,415 10,619,617 1,731,553
NET REALIZED GAIN (LOSS) ON SECURITIES SOLD - (3,609) 38,130
UNREALIZED DEPRECIATION OF SECURITIES - - (279,798)
--------------------- ------------------- ------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 3,705,415 $ 10,616,008 $ 1,489,885
===================== =================== ==================
</TABLE>
See accompanying notes to financial statements.
<PAGE> 14
Statement of Changes in Net Assets
GOVERNMENT/REPO PORTFOLIO
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
---------------------- ----------------------
(Unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 3,705,415 $ 13,829,240
Net realized gain (loss) on securities sold
- -
---------------------- ----------------------
Net increase in net assets
resulting from operations
3,705,415 13,829,240
---------------------- ----------------------
DIVIDENDS TO PARTICIPATION
CERTIFICATE HOLDERS:
From net investment income $.023
and $.054 per PC
(3,705,415) (13,829,240)
---------------------- ----------------------
CAPITAL TRANSACTIONS:
Proceeds from sale of 968,703,162
and 3,258,023,585 PCs
968,703,162 3,258,023,585
Value of 1,085,680 and 6,014,183 PCs
issued in reinvestment of dividends
1,085,680 6,014,183
Cost of 961,678,421 and 3,338,589,426
PCs repurchased
(961,678,421) (3,338,589,426)
---------------------- ----------------------
Increase (decrease) in net assets derived
from capital transactions
8,110,421 (74,551,658)
---------------------- ----------------------
Total increase (decrease) in net assets
8,110,421 (74,551,658)
NET ASSETS:
Beginning of period
124,686,280 199,237,938
---------------------- ----------------------
End of period $ 132,796,701 $ 124,686,280
====================== ======================
</TABLE>
See accompanying notes to financial statements.
<PAGE> 15
Statement of Changes in Net Assets
----------------------------------
MONEY MARKET PORTFOLIO
----------------------
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
------------------ -------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 10,619,617 $ 23,473,526
Net realized gain (loss) on
securities sold (3,609) 77
Net increase in net assets -------------- ---------------
resulting from operations 10,616,008 23,473,603
-------------- ---------------
DIVIDENDS TO PARTICIPATION
CERTIFICATE HOLDERS:
From net investment income $.023
and $.053 per PC (10,619,617) (23,473,526)
Net capital gains - (77)
-------------- ---------------
Total distributions (10,619,617) (23,473,603)
-------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from sale of 1,687,069,352
and 3,708,891,424 PCs (1,687,069,352) (3,708,891,424)
Value of 8,421,922 and 18,036,609 PCs
issued in reinvestment of dividends 8,421,922 18,036,609
Cost of 1,852,893,685 and 3,653,428,968
PCs repurchased (1,852,893,685) (3,653,428,968)
--------------- ---------------
Increase (decrease) in net assets
derived from capital transactions (157,402,411) 73,499,065
--------------- ---------------
Total increase (decrease) in
net assets (157,406,020) 73,499,065
NET ASSETS:
Beginning of period 488,124,295 414,625,230
--------------- ---------------
End of period $ 330,718,275 $ 488,124,295
=============== ===============
See accompanying notes to financial statements.
<PAGE> 16
STATEMENT OF CHANGES IN NET ASSETS
SHORT-TERM PORTFOLIO
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
-------------------- ----------------------
(Unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,731,553 $ 2,623,231
Net realized gain (loss) on securities sold 38,130 17,715
Unrealized appreciation (depreciation)
of securities (279,798) 101,501
---------------------- ----------------------
Net increase in net assets
resulting from operations
1,489,885 2,742,447
---------------------- ----------------------
DIVIDENDS TO PARTICIPATION
CERTIFICATE HOLDERS:
From net investment income $.243
and $.540 per PC
(1,731,553) (2,623,231)
---------------------- ----------------------
CAPITAL TRANSACTIONS:
Proceeds from sale of 5,990,805
and 3,125,109 PCs
59,800,000 31,194,097
Value of 95,679 and 185,408 PCs
issued in reinvestment of dividends
954,591 1,850,667
Cost of 5,331,406 and 3,096,706
PCs repurchased
(53,177,110) (30,901,428)
---------------------- ----------------------
Increase (decrease) in net assets derived
from capital transactions
7,577,481 2,143,336
---------------------- ----------------------
Total increase (decrease) in net assets
7,335,813 2,262,552
NET ASSETS:
Beginning of period
48,667,477 46,404,925
---------------------- ----------------------
End of period $ 56,003,290 $ 48,667,477
====================== ======================
</TABLE>
See accompanying notes to financial statements.
<PAGE> 17
FINANCIAL HIGHLIGHTS
GOVERNMENT/REPO PORTFOLIO
For a Participation Certificate (PC) Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months Year Year Year 6/1/95(1)
Ended Ended Ended Ended Through
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95
------------ ----------- ----------- ---------- ----------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ----------- ----------- ---------- ----------
Income From Investment Operations:
Net Investment Income 0.023 0.054 0.054 0.053 0.034
Net Realized Gain (Loss) on Investments 0 0 0 0 0
------------ ----------- ----------- ---------- ----------
Total From Investment Operations 0.023 0.054 0.054 0.053 0.034
------------ ----------- ----------- ---------- ----------
Less Distributions:
Dividends to PC holders from
Net Investment Income (0.023) (0.054) (0.054) (0.053) (0.034)
Distributions to PC holders from 0 0 0 0 0
------------ ----------- ----------- ---------- ----------
Total Distributions (0.023) (0.054) (0.054) (0.053) (0.034)
------------ ----------- ----------- ---------- ----------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ =========== =========== ========== ==========
Total Return 4.82% (3) 5.48% 5.57% 5.42% 5.99% (3)
Ratios/Supplemental Data:
Net Assets, End of Period (000) $ 132,797 $ 124,686 $ 199,238 156,382 $ 119,080
Ratio of Expenses to Average
Net Assets(2) 0.10% (3) 0.10% 0.10% 0.10% 0.10% (3)
Ratio of Net Investment Income
to Average Net Assets 4.71% (3) 5.36% 5.44% 5.29% 5.78% (3)
</TABLE>
- -----------------------------------
(1) Commencement of operations
(2) Without the waiver of a portion of advisory and administration fees (see
Note C), the ratio of expenses to average daily net assets would have
been .32% (annualized) for the six months ended June 30, 1999 and .28%,
.29%, .29% and .30% for the fiscal periods ended December 31, 1998, 1997,
1996, and 1995, respectively.
(3) Annualized
See accompanying notes to financial statements.
<PAGE> 18
FINANCIAL HIGHLIGHTS
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
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
----------- ------------ ----------- ----------- ----------- -----------
(Unaudited)
<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 0.023 0.053 0.054 0.052 0.058 0.041
Net Realized Gain (Loss) on 0 0 0 0 0 0
Investments
----------- ------------ ----------- ----------- ----------- -----------
Total From Investment Operations 0.023 0.053 0.054 0.052 0.058 0.041
----------- ------------ ----------- ----------- ----------- -----------
Less Distributions:
Dividends to PC holders from
Net Investment Income (0.023) (0.053) (0.054) (0.052) (0.058) (0.041)
Distributions to PC holders from
Net Capital Gains 0 0 0 0 0 0
----------- ------------ ----------- ----------- ----------- -----------
Total Distributions (0.023) (0.053) (0.054) (0.052) (0.058) (0.041)
----------- ------------ ----------- ----------- ----------- -----------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=========== ============ =========== =========== =========== ===========
Total Return 4.83% (2) 5.42% 5.51% 5.38% 5.97% 4.21%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $ 330,718 $ 488,124 $ 414,625 $ 524,872 $ 584,976 $ 451,367
Ratio of Expenses to Average
Net Assets(1) 0.26% (2) 0.26% 0.25% 0.23% 0.24% 0.26%
Ratio of Net Investment Income
to Average Net Assets 4.73% (2) 5.28% 5.38% 5.24% 5.82% 4.15%
</TABLE>
- ---------------------------------------
(1) Without the waiver of a portion of advisory and administration fees (see
Note C), the ratios of expenses to average daily net assets would have been
.24% and .25% for the fiscal periods ended December 31, 1996 and 1995,
respectively.
(2) Annualized
See accompanying notes to financial statements.
<PAGE> 19
FINANCIAL HIGHLIGHTS
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
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
------------- ------------- ----------- ----------- ---------- ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.00 $9.97 $9.95 $10.00 $9.93 $10.03
------------- ------------- ----------- ----------- ---------- ------------
Income From Investment Operations:
Net Investment Income 0.243 0.540 0.547 0.542 0.599 0.440
Net Realized and Unrealized
Gain (Loss) on Investments (0.040) 0.030 0.020 (0.050) 0.070 (0.100)
------------- ------------- ----------- ----------- ---------- ------------
Total From Investment Operations 0.203 0.570 0.567 0.492 0.669 0.340
------------- ------------- ----------- ----------- ---------- ------------
Less Distributions:
Dividends to PC holders from
Net Investment Income (0.243) (0.540) (0.547) (0.542) (0.599) (0.440)
Distributions to PC holders from
Net Capital Gains - - - - - -
------------- ------------- ----------- ----------- ---------- ------------
Total Distributions (0.243) (0.540) (0.547) (0.542) (0.599) (0.440)
------------- ------------- ----------- ----------- ---------- ------------
Net Asset Value, End of Period $9.96 $10.00 $9.97 $9.95 $10.00 $9.93
============= ============= =========== =========== ========== ============
Total Return 4.18% (3) 5.86% 5.85% 5.08% 6.92% 3.46%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $56,003 $48,667 $46,405 $69,940 $63,922 $103,240
Ratio of Expenses to Average
Net Assets(1) 0.30% (3) 0.30% 0.30% 0.30% 0.30% 0.30%
Ratio of Net Investment Income
to Average Net Assets 4.90% (3) 5.42% 5.47% 5.43% 6.00% 4.29%
Portfolio Turnover Rate(2) 97.6% (3) 10.2% 79.2% 119.0% 64.8% 47.6%
</TABLE>
- -----------------------------------------
(1) Without the waiver of a portion of advisory, service agent and
administration fees (see Note C), the ratios of expenses to average daily
net assets would have been .50% (annualized) for the six months ended
June 30, 1999 and .59%, .57%, .48%, .43%, and .37% for the fiscal periods
ended December 31, 1998, 1997, 1996, 1995 and 1994.
(2) Excludes security purchases with a maturity of less than one year.
(3) Annualized
See accompanying notes to financial statements.
<PAGE> 20
Notes to Financial Statements
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 Portfolios
intend, subject to the use of offsetting capital loss carry-forwards, to
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,
1999, the Short-Term Portfolio had capital loss carry-forwards amounting to
$854,279, $114,232 and $40,211 that expire in 2002, 2004 and 2005
respectively. 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 repurchase agreements
may have longer maturities than the maximum permissible remaining maturity
of portfolio investments. 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. All repurchase agreements were entered
into on June 30, 1999.
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, 1999 and the maturity shown is the date of
the next interest readjustment.
<PAGE> 21
Management Estimates - The preparation of financial statements in
accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates.
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 - BlackRock
Institutional Management Corporation ("BIMC"), an indirect majority owned
subsidiary of PNC Bank National Association, serves as the Portfolios'
investment advisor and service agent. As compensation for its services the
Portfolios pay BIMC a fee, computed daily and paid monthly based upon an
annualized percentage of the average daily net assets, 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 Delaware Limited
Liability Corporation, serves as the Portfolio's investment advisor. As
compensation for its services, the Portfolio pays N&B a fee, computed daily
and paid monthly based upon an annualized percentage of the average daily
net assets, 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 Corporation ("CSC") served as the Fund's
administrator until March 31, 1999. Effective April 1, 1999, BCS Financial
Services Corporation ("BCS") 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 BCS 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.
PFPC Trust Company ("PFPC Trust"), an affiliate of PNC Bank National
Association, 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, BIMC serves as the Short-Term Portfolio
service agent. PFPC Trust, BIMC and PFPC receive fees from the Fund for
serving in these capacities.
BIMC and N&B have agreed contractually to reduce their advisory fees
otherwise payable to them in 1999 to the extent necessary to reduce the
ordinary operating expenses of the 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 $49,507
of such fees payable by the Short-Term Portfolio for the period ended June
30, 1999. BIMC voluntarily waived $17,838 of service agent fees and CSC and
BCS voluntarily waived $1,845 and $2,039, respectively, of administrator
fees payable by the Short-Term Portfolio during this period. In addition,
BIMC voluntarily waived $680 and $139,171 of advisory fees. CSC voluntarily
waived $226 and $15,003 of administrator fees payable by the Money Market
Portfolio and Government/REPO Portfolio, respectively, during this period.
BCS voluntarily waived $16,925 of administrator fees payable by the
Government/REPO Portfolio during this period.
D. At June 30,1999, net assets consisted of:
<TABLE>
<CAPTION>
Government/REPO Money Market Short-Term
Portfolio Portfolio Portfolio
--------------- ------------ -----------
<S> <C> <C> <C>
Capital paid in.................... $132,796,701 $330,721,884 $57,088,445
Accumulated realized gain (loss) on
security transactions............ - (3,609) (970,592)
Net unrealized appreciation of
investments...................... - - (114,563)
--------------- ------------ -----------
$132,796,701 $330,718,275 $56,003,290
--------------- ------------ -----------
</TABLE>
E. Short-Term Portfolio purchases and sales of investment securities, other
than short-term investments, were
<PAGE> 22
$15,108,455 and $16,659,159, respectively, and purchases and sales of U.S
Government securities were $10,422,702 and $17,925,086 respectively, for
the period ended June, 30, 1999.
Annual Meeting of Participation Certificate Holders
(Unaudited)
The 1999 Plan Investment Fund, Inc. Annual Meeting of Participation
Certificate Holders was held on April 22, 1999. At this meeting the
Participation Certificate Holders elected the slate of Trustee nominees
recommended by the Board of Trustees and ratified the selection of
PricewaterhouseCoopers LLP, as the independent certified public accountants
for the fiscal year ending December 31, 1999. A total of 537,824,984.855
Participation Certificates, representing 86.0% of the Participation
Certificates eligible to be voted at the meeting were voted as follows:
<TABLE>
<CAPTION>
For Against Abstain
------- --------- ---------
<S> <C> <C> <C>
Election of Trustee Nominees 537,824,984.855 0 0
Ratification of independent
certified public accountants 530,421,734.334 0 7,403,250.521
</TABLE>
<PAGE> 23
- --------------------------------------------------------------------------------
PLAN INVESTMENT FUND, INC.
676 N. St. Clair
Chicago, Illinois 60611
(312) 951-9841
TRUSTEES
EDWARD J. BARAN JOSEPH REICHARD
President and Vice President, Treasury Services &
Chief Executive Officer Assistant Treasurer
Plan Investment Fund, Inc. Highmark, Inc.
BCS Financial Corporation
M. EDWARD SELLERS
HOWARD F. BEACHAM III President and
President and Chief Executive Officer
Chief Operating Officer Blue Cross and Blue Shield
Blue Cross and Blue Shield of South Carolina
of Central New York, Inc.
THOMAS J. WARD
PHILLIP A. GOSS President and
Vice President Chief Executive Officer
Corporate Development Blue Cross of Northeastern
Blue Cross and Blue Shield Pennsylvania
of Illinois
SHERMAN M. WOLFF
RONALD F. KING Senior Vice President, Corporate
President and Resources and
Chief Executive Officer Chief Financial Officer
Blue Cross and Blue Shield Health Care Service Corporation
of Oklahoma
MARK A. ORLOFF
Vice President and
Deputy General Counsel
Blue Cross and Blue Shield
Association
INVESTMENT ADVISORS
-------------------
GOVERNMENT/REPO PORTFOLIO SHORT TERM PORTFOLIO
and MONEY MARKET PORTFOLIO Neuberger Berman
BlackRock Institutional Management Corporation New York, New York
Wilmington, Delaware
