<PAGE> 1
PLAN INVESTMENT FUND, INC.
Semi-Annual Report
June 30, 2000
ADMINISTRATOR:
(BCS LOGO)
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, 2000
Fellow Investors:
On behalf of the Board of Trustees, I am pleased to submit the 2000 Semi-Annual
report for Plan Investment Fund, Inc. As the accompanying tables show, the
Portfolios continue to provide competitive returns and the highest quality
ratings.
It has been five years since the introduction of the Government/REPO Portfolio,
and coincidentally, it has been five years since money market rates have been
above 6%. As originally planned, when interest rates begin moving upward the
yield on the Government/REPO Portfolio also responds quickly to provide
investors the opportunity to capture the increased return potential. If this
portfolio was publicly available, it would have ranked as the leading taxable
fund for the second quarter by 4 basis points. The other portfolios also
continue to offer very competitive returns as a result of Plan Investment Fund's
choice of talented managers and low expense ratios.
Balances in Plan Investment Fund as of June 30th are nearly the same as at the
end of the last quarter and the average balance in the fund through the second
quarter is down only slightly from the 1999 average.
Over the last year there has been an unceasing rise in short-term interest rates
spurred by the Federal Reserve's desire to not let the economy overheat. This
activity is expected to bring some slowing in the US economy for the remainder
of this year and through 2001. Economic deceleration will be felt in credit
sensitive sectors of the economy, primarily consumer spending and housing.
However, the overall financial health of the consumer remains good.
Plan Investment Fund continues in its mission to deliver high quality, prudently
managed , investment portfolios to the Blue System. These portfolios provide
competitive returns coupled with personalized service dedicated to helping
investors meet their goals. As always we welcome your ideas or comments about
how we can improve our service or products.
Sincerely,
/s/ Edward J. Baran
-------------------------------------
Edward J. Baran
President and Chief Executive Officer
<PAGE> 3
--------------------------------------------------------------------------------
COMPARATIVE PERFORMANCE: ANNUALIZED TOTAL RETURN
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Periods Ended Three Six One From
June 30, 2000 Months Months Year Inception*
------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
GOVERNMENT/REPO PORTFOLIO 6.35% 6.04% 5.66% 5.51%
iMoneyNet Money Market Avg. 5.98% 5.75% 5.38% 5.23%
Repurchase Agreements 6.29% 6.01% 5.65% 5.50%
MONEY MARKET PORTFOLIO 6.26% 6.04% 5.63% 5.83%
iMoneyNet Money Market Avg. 5.98% 5.75% 5.38% 5.62%
Repurchase Agreements 6.29% 6.01% 5.65% 5.77%
SHORT-TERM PORTFOLIO 7.10% 6.42% 5.45% 5.94%
6 Month Treasury Bill 6.00% 5.75% 5.35% 5.70%
1 - 3 Year Treasury Note Index 7.10% 6.11% 4.91% 6.75%
</TABLE>
* Inception dates:
6/01/95 - Government/REPO Portfolio; 3/11/87 -
Money Market and Short-Term Portfolios
--------------------------------------------------------------------------------
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 5.95% $1.00 1 Day A1+
May 6.10% $1.00 1 Day A1+
June 6.44% $1.00 3 Days A1+
MONEY MARKET PORTFOLIO
April 5.86% $1.00 26 Days A1+
May 6.05% $1.00 20 Days A1+
June 6.32% $1.00 40 Days A1+
SHORT-TERM PORTFOLIO
April 6.09% $9.92 5.2 Months AA+
May 5.97% $9.91 8.3 Months AA+
June 6.14% $9.94 8.5 Months AAA
</TABLE>
<PAGE> 4
GOVERNMENT/REPO PORTFOLIO
Statement of Net Assets
(Unaudited)
June 30, 2000
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
------------------ -------------- -------------------
<S> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY OBLIGATIONS 52.1%
---------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation
Discount Notes
6.57% (07/03/00) $ 136,400 $ 136,350,214
-------------------
(Cost $136,350,214)
---------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 48.4%
---------------------------------------------------------------------------------------------------------------------------
Lehman Government Securities, Inc.
6.55% (07/03/00)
To be repurchased at $40,021,833
(Collateralized by $41,780,000 Federal
Home Loan Mortgage Corporation
Discount Notes, due 09/14/00;
Market Value is $41,203,437.) 40,000 40,000,000
Morgan (J.P.) Securities, Inc.
6.75% (07/03/00)
To be repurchased at $40,022,500
(Collateralized by $44,061,026 Government
National Mortgage Association Bonds, 6.50%,
due 10/15/29; Market Value is $41,200,001.) 40,000 40,000,000
Morgan Stanley & Co., Inc.
6.875% (07/03/00)
To be repurchased at $46,826,813
(Collateralized by $44,425,000 U.S. Treasury
Inflation Indexed Securities, 3.625%,
due 07/15/02; Market Value is $47,940,056.)
46,800 46,800,000
-------------------
TOTAL REPURCHASE AGREEMENTS 126,800,000
-------------------
(Cost $126,800,000)
TOTAL INVESTMENTS IN SECURITIES 100.5% 263,150,214
(Cost $263,150,214*)
LIABILITIES IN EXCESS OF OTHER ASSETS (0.5%) (1,378,109)
------------------ ---------------------
NET ASSETS (Applicable to 261,772,105
PCs outstanding) 100.0% $ 261,772,105
================== ===================
NET ASSET VALUE, offering and
redemption price per PC
($261,772,105/261,772,105 PCs) $ 1.00
===================
</TABLE>
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
<PAGE> 5
MONEY MARKET PORTFOLIO
Statement of Net Assets
(Unaudited)
June 30, 2000
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
------------------ -------------- -------------------
--------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY OBLIGATIONS 6.0%
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Federal Home Loan Mortgage Corporation
Discount Notes
6.57% (07/03/00) $ 13,600 $ 13,595,036
-------------------
(Cost $13,595,036)
--------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 50.9%
--------------------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES 14.4%
Centric Capital Corp.
6.6499% (08/24/00) 5,900 5,841,148
Edison Asset Securitzation LLC
6.58% (08/28/00) 10,000 9,893,989
Enterprise Funding Corp.
6.63% (08/25/00) 7,040 6,968,691
Grand Funding Corp.
6.66% (08/02/00) 10,000 9,940,800
-------------------
32,644,628
-------------------
BANKS 10.9%
Forrestal Funding Master Trust
6.4099% (07/17/00) 15,000 14,957,267
Wells Fargo & Co.
6.6199% (08/28/00) 10,000 9,893,344
-------------------
24,850,611
-------------------
FIRE, MARINE & CASUALTY INSURANCE 4.0%
USAA Capital Corp.
6.63% (08/22/00) 9,250 9,161,416
-------------------
INSURANCE 4.3%
Prudential Funding Corp.
6.62% (12/11/00) 10,000 9,700,261
-------------------
INSURANCE AGENTS, BROKERS & SERVICES 4.3%
Marsh USA, Inc.
6.65% (12/11/00) 10,000 9,698,903
-------------------
</TABLE>
<PAGE> 6
MONEY MARKET PORTFOLIO
Statement of Net Assets
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
------------------ -------------- -------------------
<S> <C> <C> <C>
INSURANCE CARRIERS, NEC 4.3%
Aegon Funding Corp.
6.58% (09/05/00) $ 10,000 $ 9,879,367
SECURITY BROKERS & DEALERS 4.3%
Salomon Smith Barney Holdings, Inc.
6.61% (09/06/00) 10,000 9,876,981
-------------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS 4.4%
General Electric Capital Corp.
6.65% (08/16/00) 10,000 9,915,028
-------------------
TOTAL COMMERCIAL PAPER 115,727,195
-------------------
(Cost $115,727,195)
---------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE OBLIGATIONS 40.5%
---------------------------------------------------------------------------------------------------------------------------
BANKS 20.7%
Bank One Corp.
6.32% (07/05/00) 15,000 14,998,076
Comerica Bank - Detroit
6.7012% (07/25/00) 15,000 14,997,574
First Union Corp.
6.68% (07/03/00) 17,000 17,000,000
-------------------
46,995,650
-------------------
SECURITY BROKERS & DEALERS 6.6%
Merrill Lynch & Co., Inc.
6.24% (07/12/00) 15,000 14,997,635
-------------------
SHORT-TERM BUSINESS CREDIT 6.6%
Caterpillar Financial Services Corp.
6.2812% (07/17/00) 15,000 14,999,672
-------------------
TELECOMMUNICATIONS 6.6%
AT&T Corp.
6.24% (07/13/00) 15,000 14,999,802
-------------------
TOTAL VARIABLE RATE OBLIGATIONS 91,992,759
-------------------
(Cost $91,992,759)
</TABLE>
<PAGE> 7
MONEY MARKET PORTFOLIO
Statement of Net Assets
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
------------------ -------------- -------------------
--------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 2.8%
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Morgan Stanley & Co., Inc.
6.875% (07/03/00)
To be repurchased at $6,403,667
(Collateralized by $6,650,000 U.S.
Treasury Bonds and Notes, 5.50%
to 8.75%, due 3/31/01 to 8/15/20;
Market Value is $6,717,370.) $ 6,400 $ 6,400,000
-------------------
(Cost $6,400,000)
TOTAL INVESTMENTS IN SECURITIES 100.2% 227,714,990
(Cost $227,714,990*)
LIABILITIES IN EXCESS OF OTHER ASSETS (0.2%) (456,078)
------------------ -------------------
NET ASSETS (Applicable to 227,271,796
PCs outstanding) 100.0% $ 227,258,912
================== ===================
NET ASSET VALUE, offering and
redemption price per PC
($227,258,912/227,271,796 PCs) $ 1.00
===================
</TABLE>
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
<PAGE> 8
SHORT-TERM PORTFOLIO
STATEMENT OF NET ASSETS
(Unaudited)
June 30, 2000
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
----------------- --------- -------------
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY NOTES 16.0%
--------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes
6.625% (07/31/01) $ 720 $ 721,125
6.375% (04/30/02) 450 449,438
6.625% (05/31/02) 2,500 2,509,375
-------------
TOTAL U.S. TREASURY 3,679,938
(Cost $3,661,074) -------------
--------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY OBLIGATIONS 5.1%
--------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage
Corporation Gold Balloon
6.50% (7/31/00) 1,202 1,173,148
(Cost $1,204,872) -------------
--------------------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES 17.1%
--------------------------------------------------------------------------------------------------------------------------
Case Equipment Loan Trust
5.285% (08/01/00) 662 660,500
Daimler Chrysler Auto Trust Series 2000A
6.76% (05/01/01) 1,500 1,494,870
Honda Auto Lease Trust Series 1999A
6.45% (09/01/00) 500 496,590
Honda Auto Receivables Grantor Trust
Series 1997A
5.85% (09/01/00) 142 141,869
Nissan Auto Receivables Owner
Trust 2000B
7.25% (04/15/02) 440 440,893
Union Acceptance Corp.
7.44% (04/01/02) 700 702,513
-------------
TOTAL ASSET BACKED SECURITIES 3,937,235
(Cost $3,939,914) -------------
</TABLE>
<PAGE> 9
SHORT-TERM PORTFOLIO
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
----------------- --------- -------------
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 6.5%
--------------------------------------------------------------------------------------------------------------------------
BANKS
Bank of America
6.52% (01/25/01) $ 1,500 $ 1,498,444
(Cost $1,500,000) -------------
--------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 38.0%
--------------------------------------------------------------------------------------------------------------------------
BEVERAGES 6.9%
Anheuser-Bush Cos., Inc.
6.20% (10/04/00) 1,000 983,122
Pepsico, Inc.
6.65% (07/05/00) 605 604,553
-------------
1,587,675
CHEMICALS 4.3%
Dupont (E.I.) de Nemours & Co.
6.07% (07/10/00) 1,000 998,463
FINANCE 14.4%
American Express Credit Corp.
6.07% (07/17/00) 700 698,084
Ford Motor Credit Co.
6.57% (11/30/00) 545 529,583
Goldman Sachs Group L.P.
6.14% (07/10/00) 700 698,912
Met Life Funding Corp.
6.11% (07/20/00) 700 697,640
Morgan Stanley, Inc.
6.55% (07/17/00) 700 697,933
-------------
3,322,152
-------------
FINANCIAL 4.3%
Corporate Asset Funding Co.
6.12% (07/10/00) 1,000 998,450
-------------
INSURANCE 2.1%
Prudential Funding Corp.
6.60% (12/04/00) 500 485,425
-------------
</TABLE>
<PAGE> 10
SHORT-TERM PORTFOLIO
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PERCENTAGE
OF PAR
NET ASSETS (000) VALUE
----------------- --------- -------------
<S> <C> <C> <C>
UTILITIES - ELECTRIC 3.0%
Union Electric Co.
6.95% (07/03/00) $ 690 $ 689,734
-------------
UTILITIES - TELEPHONE 3.0%
AT&T Co.
6.61% (11/29/00) 700 680,207
-------------
TOTAL COMMERCIAL PAPER 8,762,106
(Cost $8,763,795) -------------
--------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE OBLIGATIONS 4.3%
--------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES
Fleet Financial Group
6.98% (09/27/00) 1,000 997,925
(Cost $1,000,000) -------------
--------------------------------------------------------------------------------------------------------------------------
FIXED RATE OBLIGATIONS 12.9%
--------------------------------------------------------------------------------------------------------------------------
FINANCE 2.2%
Merrill Lynch & Co.
6.72% (02/14/01) 500 498,032
-------------
FINANCIAL SERVICES 8.6%
General Electric Capital Corp.
6.33% (09/17/01) 2,000 1,980,172
-------------
FINANCIAL 2.1%
CIT Group, Inc.
7.375% (03/15/03) 500 493,470
-------------
TOTAL MEDIUM TERM NOTES 2,971,674
(Cost $2,997,109) -------------
</TABLE>
<PAGE> 11
SHORT-TERM PORTFOLIO
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PERCENTAGE
OF
NET ASSETS VALUE
----------------- -------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES 99.9% 23,020,470
(Cost $23,066,764 *) -----------------
OTHER ASSETS IN EXCESS OF LIABILITIES 0.1% 31,930
----------------- -------------
NET ASSETS (Applicable to 2,320,069
PCs outstanding) 100.0% $ 23,052,400
================= =============
NET ASSET VALUE, offering and
redemption price per PC
($23,052,400/2,320,069 PCs) $ 9.94
=============
</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 $22,956; excess of
tax cost over value $69,250.
See accompanying notes to financial statements.
<PAGE> 12
STATEMENTS OF OPERATIONS
(Unaudited)
SIX MONTHS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
GOVERNMENT/REPO MONEY MARKET SHORT-TERM
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C>
INTEREST INCOME $ 6,163,551 $ 12,025,243 $ 911,584
------------ ------------ ------------
EXPENSES
Investment advisory fee 198,242 356,373 45,142
Administration fee 50,756 98,858 7,524
Custodian 15,715 24,029 5,278
Audit 6,320 11,707 1,499
Insurance 3,523 12,001 1,288
Legal 6,640 9,320 994
Printing 1,877 2,240 450
Professional services 4,660 2,986 -
Transfer agent 3,460 5,707 600
Trustee expenses 1,423 3,600 300
Service agent - - 50,001
Miscellaneous 212 60 965
------------ ------------ ------------
Total Expenses 292,828 526,881 114,041
Less Fees waived (191,315) (3,015) (68,899)
------------ ------------ ------------
Net Expenses 101,513 523,866 45,142
------------ ------------ ------------
NET INVESTMENT INCOME 6,062,038 11,501,377 866,442
NET REALIZED LOSS ON SECURITIES SOLD - (8,974) (143,136)
UNREALIZED APPRECIATION OF SECURITIES - - 192,928
------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 6,062,038 $ 11,492,403 $ 916,234
============ ============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE> 13
GOVERNMENT/REPO PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
--------------- -----------------
(Unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 6,062,038 $ 9,056,869
Net realized gain (loss) on securities sold -- --
--------------- ---------------
Net increase in net assets
resulting from operations 6,062,038 9,056,869
--------------- ---------------
DIVIDENDS TO PARTICIPATION
CERTIFICATE HOLDERS:
From net investment income $.029
and $.049 per PC (6,062,038) (9,056,869)
--------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from sale of 1,848,918,323
and 2,921,614,052 PCs 1,848,918,323 2,921,614,052
Value of 1,930,213 and 2,740,565 PCs
issued in reinvestment of dividends 1,930,213 2,740,565
Cost of 1,691,949,232 and 2,946,168,096
PCs repurchased (1,691,949,232) (2,946,168,096)
--------------- ---------------
Increase (decrease) in net assets derived
from capital transactions 158,899,304 (21,813,479)
--------------- ---------------
Total increase (decrease) in net assets 158,899,304 (21,813,479)
NET ASSETS:
Beginning of period 102,872,801 124,686,280
--------------- ---------------
End of period $ 261,772,105 $ 102,872,801
=============== ===============
</TABLE>
See accompanying notes to financial statements.
<PAGE> 14
MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
--------------- -----------------
(Unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 11,501,377 $ 20,298,065
Net realized gain (loss) on securities sold (8,974) (3,910)
--------------- ---------------
Net increase in net assets
resulting from operations 11,492,403 20,294,155
--------------- ---------------
DIVIDENDS TO PARTICIPATION
CERTIFICATE HOLDERS:
From net investment income $.029
and $.049 per PC (11,501,377) (20,298,065)
Net capital gains -- --
--------------- ---------------
Total distributions (11,501,377) (20,298,065)
--------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from sale of 2,175,139,726
and 3,577,865,628 PCs 2,175,139,726 3,577,865,628
Value of 6,765,528 and 15,097,502 PCs
issued in reinvestment of dividends 6,765,528 15,097,502
Cost of 2,380,657,007 and 3,655,063,876
PCs repurchased (2,380,657,007) (3,655,063,876)
--------------- ---------------
Increase (decrease) in net assets derived
from capital transactions (198,751,753) (62,100,746)
--------------- ---------------
Total increase (decrease) in net assets (198,760,727) (62,104,656)
NET ASSETS:
Beginning of period 426,019,639 488,124,295
--------------- ---------------
End of period $ 227,258,912 $ 426,019,639
=============== ===============
</TABLE>
See accompanying notes to financial statements
<PAGE> 15
SHORT-TERM PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
------------- -----------------
(Unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 866,442 $ 3,126,064
Net realized gain (loss) on securities sold (143,136) (32,174)
Unrealized appreciation (depreciation)
of securities 192,928 (404,457)
------------ ------------
Net increase in net assets
resulting from operations 916,234 2,689,433
------------ ------------
DIVIDENDS TO PARTICIPATION
CERTIFICATE HOLDERS:
From net investment income $.288
and $.502 per PC (866,442) (3,126,064)
------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from sale of 807,269 and
6,644,257 PCs 8,000,040 66,300,020
Value of 64,553 and 180,621 PCs
issued in reinvestment of dividends 640,137 1,799,213
Cost of 1,872,905 and 8,372,866
PCs repurchased (18,578,754) (83,388,894)
------------ ------------
Increase (decrease) in net assets derived
from capital transactions (9,938,577) (15,289,661)
------------ ------------
Total increase (decrease) in net assets (9,888,785) (15,726,292)
NET ASSETS:
Beginning of period 32,941,185 48,667,477
------------ ------------
End of period $ 23,052,400 $ 32,941,185
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE> 16
GOVERNMENT/REPO PORTFOLIO
FINANCIAL HIGHLIGHTS
For a Participation Certificate (PC) Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months YEAR YEAR YEAR YEAR 6/1/95(1)
ENDED ENDED ENDED ENDED ENDED THROUGH
06/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
--------- --------- --------- --------- --------- ---------
(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 0.029 0.049 0.054 0.054 0.053 0.034
Net Realized Gain (Loss) on Investments 0 0 0 0 0 0
--------- --------- --------- --------- --------- ---------
Total From Investment Operations 0.029 0.049 0.054 0.054 0.053 0.034
--------- --------- --------- --------- --------- ---------
Less Distributions:
------------------
Dividends to PC holders from
Net Investment Income (0.029) (0.049) (0.054) (0.054) (0.053) (0.034)
Distributions to PC holders from
Net Capital Gains 0 0 0 0 0 0
--------- --------- --------- --------- --------- ---------
Total Distributions (0.029) (0.049) (0.054) (0.054) (0.053) (0.034)
--------- --------- --------- --------- --------- ---------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return 6.04% (3) 5.05% 5.48% 5.57% 5.42% 5.99% (3)
Ratios/Supplemental Data:
------------------------
Net Assets, End of Period (000) $ 261,772 $ 102,873 $ 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% 0.10% (3)
Ratio of Net Investment Income
to Average Net Assets 5.88% (3) 4.98% 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
.29% (annualized) for the six months ended June 30, 2000 and .30%, .28%,
.29%, .29% and .30% for the fiscal periods ended December 31, 1999, 1998,
1997, 1996 and 1995, respectively.
(3) Annualized
See accompanying notes to financial statements.
<PAGE> 17
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
For a Participation Certificate (PC) Outstanding Throughout the Period
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
--------- --------- --------- --------- --------- ---------
(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 0.029 0.049 0.053 0.054 0.052 0.058
Net Realized Gain (Loss) on Investments 0 0 0 0 0 0
--------- --------- --------- --------- --------- ---------
Total From Investment Operations 0.029 0.049 0.053 0.054 0.052 0.058
--------- --------- --------- --------- --------- ---------
Less Distributions:
------------------
Dividends to PC holders from
Net Investment Income (0.029) (0.049) (0.053) (0.054) (0.052) (0.058)
Distributions to PC holders from
Net Capital Gains 0 0 0 0 0 0
--------- --------- --------- --------- --------- ---------
Total Distributions (0.029) (0.049) (0.053) (0.054) (0.052) (0.058)
--------- --------- --------- --------- --------- ---------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return 6.04% (2) 5.02% 5.42% 5.51% 5.38% 5.97%
Ratios/Supplemental Data:
------------------------
Net Assets, End of Period (000) $ 227,259 $ 426,020 $ 488,124 $ 414,625 $ 524,872 $ 584,976
Ratio of Expenses to Average
Net Assets(1) 0.27% (2) 0.27% 0.26% 0.25% 0.23% 0.24%
Ratio of Net Investment Income
to Average Net Assets 5.88% (2) 4.90% 5.28% 5.38% 5.24% 5.82%
</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> 18
SHORT-TERM PORTFOLIO
FINANCIAL HIGHLIGHTS
For a Participation Certificate (PC) Outstanding Throughout the Period
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
-------- -------- -------- -------- -------- --------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.92 $ 10.00 $ 9.97 $ 9.95 $ 10.00 $ 9.93
-------- -------- -------- -------- -------- --------
Income From Investment Operations:
---------------------------------
Net Investment Income 0.288 0.502 0.540 0.547 0.542 0.599
Net Realized and Unrealized
Gain (Loss) on Investments 0.020 (0.080) 0.030 0.020 (0.050) 0.070
-------- -------- -------- -------- -------- --------
Total From Investment Operations 0.308 0.422 0.570 0.567 0.492 0.669
-------- -------- -------- -------- -------- --------
Less Distributions:
------------------
Dividends to PC holders from
Net Investment Income (0.288) (0.502) (0.540) (0.547) (0.542) (0.599)
Distributions to PC holders from
Net Capital Gains 0 0 0 0 0 0
-------- -------- -------- -------- -------- --------
Total Distributions (0.288) (0.502) (0.540) (0.547) (0.542) (0.599)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 9.94 $ 9.92 $ 10.00 $ 9.97 $ 9.95 $ 10.00
======== ======== ======== ======== ======== ========
Total Return 6.42% (3) 4.33% 5.86% 5.85% 5.08% 6.92%
Ratios/Supplemental Data:
------------------------
Net Assets, End of Period (000) $ 23,052 $ 32,941 $ 48,667 $ 46,405 $ 69,940 $ 63,922
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 5.76% (3) 5.01% 5.42% 5.47% 5.43% 6.00%
Portfolio Turnover Rate(2) 56.8% 106.6% 10.2% 79.2% 119.0% 64.8%
</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 .76% (annualized) for the six months ended June
30, 2000 and .54%, .59%, .57%, .48% and .43% for the fiscal periods
December 31, 1999, 1998, 1997, 1996 and 1995, respectively.
(2) Excludes security purchases with a maturity of less than one year.
(3) Annualized
See accompanying notes to financial statements.
<PAGE> 19
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 June30, 2000, the Short-Term Portfolio had capital loss carry-forwards
amounting to $854,279, $114,232, $40,211 and $32,174 that expire in 2002,
2004, 2005 and 2007 respectively. These loss carry-forwards are available
to offset possible future capital gains of the Short-Term Portfolio. At
June 30, 2000, the Money Market Portfolio had a capital loss carry-forward
amounting to $3,910 that expires in 2007. This loss carry-forward is
available to offset possible future capital gains of the Money Market
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, 2000.
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, 2000, and the maturity shown is the date
of the next interest readjustment.
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.
<PAGE> 20
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 ("NB"), a Delaware Limited
Liability Corporation, serves as the Portfolio's investment advisor. As
compensation for its services, the Portfolio pays NB 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.
BCS Financial Services Corporation ("BCS") serves as the Fund's
administrator 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 NB have agreed contractually to reduce their advisory fees
otherwise payable to them in 2000 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, NB waived $28,258
of such fees payable by the Short-Term Portfolio for the period ended June
30, 2000. BIMC voluntarily waived $38,182 of service agent fees and BCS
voluntarily waived $2,459 of administrator fees payable by the Short-Term
Portfolio during this period. In addition, BIMC voluntarily waived $2,261
and $157,287 of advisory fees and BCS voluntarily waived $754 and $34,028
of administrator fees payable by the Money Market Portfolio and
Government/REPO Portfolio, respectively, during this period.
D. At June 30, 2000, net assets consisted of:
<TABLE>
<CAPTION>
Government/REPO Money Market Short-Term
Portfolio Portfolio Portfolio
--------------- ------------ -----------
<S> <C> <C> <C>
Capital paid in.................... $261,772,105 $227,271,796 $24,282,726
Accumulated realized loss on
security transactions............ -- (12,884) (1,184,032)
Net unrealized depreciation of
investments...................... -- -- (46,294)
------------ ------------ -----------
$261,772,105 $227,258,912 $23,052,400
============ ============ ===========
</TABLE>
Short-Term Portfolio purchases and sales of investment securities, other than
short-term investments, were $8,991,085 and $13,758,339, respectively, and
purchases and sales of U.S. Government securities were $4,354,827 and $697,430
respectively, for the period ended June 30, 2000.
<PAGE> 21
ANNUAL MEETING OF PARTICIPATION CERTIFICATE HOLDERS
(Unaudited)
The 2000 Plan Investment Fund, Inc. Annual Meeting of Participation Certificate
Holders was held on April 25, 2000. At this meeting the Participation
Certificate Holders elected the slate of Trustee nominees recommended by the
Board of Trustees, ratified the selection of PricewaterhouseCoopers LLP, as the
independent certified public accountants for the fiscal year ending December 31,
2000 and ratified amendment of the fundamental limitations of the Money Market
Portfolio. A total of 478,746,885.17 Participation Certificates, representing
84.9% 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 478,746,885.17 0 0
Ratification of independent
certified public accountants 478,054,722.74 0 692,162.43
Ratification of amendment
to fundamental limitation of
Money Market Portfolio 380,155,577.38 335,520.11 0
</TABLE>
<PAGE> 22
PLAN INVESTMENT FUND, INC.
676 N. St. Clair
Chicago, Illinois 60611
(312) 951-9841
TRUSTEES
EDWARD J. BARAN MARK A. ORLOFF
President and Vice President and
Chief Executive Officer Deputy General Counsel
Plan Investment Fund, Inc. Blue Cross and Blue Shield
BCS Financial Corporation Association
HOWARD F. BEACHAM III JED H. PITCHER
President and Chairman of the Board and
Chief Operating Officer Chief Executive Officer
Blue Cross and Blue Shield Regence Blue Cross and Blue Shield
of Central New York, Inc. of Utah
PHILLIP A. GOSS JOSEPH REICHARD
Vice President Vice President, Treasury Services &
Corporate Development Assistant Treasurer
Blue Cross and Blue Shield Highmark, Inc.
of Illinois
RONALD F. KING M. EDWARD SELLERS
President and President and
Chief Executive Officer Chief Executive Officer
Blue Cross and Blue Shield Blue Cross and Blue Shield
of Oklahoma of South Carolina
JAMES M. MEAD
President and
Chief Executive Officer
Capital Blue Cross
INVESTMENT ADVISORS
-------------------
GOVERNMENT/REPO PORTFOLIO SHORT TERM PORTFOLIO
AND MONEY MARKET PORTFOLIO Neuberger Berman
--------------------------
BlackRock Institutional Management Corporation New York, New York
Wilmington, Delaware
