<PAGE>
Semi-Annual Report
August 31, 1998
Asset Allocation Fund
Bond Index Fund
Growth Stock Fund
LifePath 2000 Fund(R)
LifePath 2010 Fund(R)
LifePath 2020 Fund(R)
LifePath 2030 Fund(R)
LifePath 2040 Fund(R)
Money Market Fund
S&P 500 Stock Fund
Short-Intermediate Term Fund
US Treasury Allocation Fund
MasterWorks(R) Funds
Advised by Barclays Global Fund Advisors
Sponsored and distributed by Stephens Inc.,
Member NYSE/SIPC
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders.................................................... 1
Masterworks(R) Market Overview............................................ 2
Managers Discussion and Analysis.......................................... 6
MASTERWORKS FUNDS INC.
Money Market Fund Portfolio of Investments............................... 22
Statement of Assets and Liabilities...................................... 24
Statement of Operations.................................................. 28
Statements of Changes in Net Assets...................................... 32
Financial Highlights..................................................... 40
Notes to the Financial Statements........................................ 49
MASTER INVESTMENT PORTFOLIO AND MANAGED SERIES INVESTMENT TRUST PORTFOLIOS
OF INVESTMENTS
Asset Allocation Master Portfolio........................................ 55
Bond Index Master Portfolio.............................................. 75
Growth Stock Master Portfolio............................................ 80
LifePath Master Portfolios............................................... 88
S&P 500 Index Master Portfolio........................................... 172
Short-Intermediate Term Master Portfolio................................. 191
U.S. Treasury Allocation Master Portfolio................................ 193
MASTER INVESTMENT PORTFOLIO AND MANAGED SERIES
INVESTMENT TRUST
Statement of Assets and Liabilities...................................... 196
Statement of Operations.................................................. 200
Statements of Changes in Net Assets...................................... 204
Master Investment Portfolio Notes to the Financial Statements............ 212
Managed Series Investment Trust Notes to the Financial Statements........ 218
</TABLE>
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE>
SHAREHOLDERS LETTER MASTERWORKS FUNDS
To Our Shareholders:
The six month period ending August 31, 1998 continued to demonstrate funda-
mental strengths in both the domestic equity and bond markets, although in-
creased volatility in recent months has raised concerns that certain supports
of the bull market are faltering.
The dramatic rise in equity prices over the past three-and-one-half years
can be attributed largely to strong and stable corporate earnings growth capi-
talized at higher valuations because of the drop in bond yields. Earnings, as
measured by the Standard & Poor's 500 Index, have grown every year since 1991
and are projected to rise this year and next. This consistent earnings pattern
is more highly valued by investors than is a period of faster gains followed
by a sharp decline in earnings. In addition to a steady earnings pattern, the
strong growth rate for earnings as measured by the Standard & Poor's 500 Index
has been 14% over the past five years, as compared with a long-run average of
just over 6%
Key trends for the period currently support the following views:
. Economic growth is expected to resume following a mid-year lull.
. The strong demand for equities and the positive interest rate
environment will continue to support stocks, even though earnings
growth is slowing, and is likely to result in a volatile market near-
term.
. U.S. Bonds remain an attractive investment, as solid U.S. real yields
compare favorably with those of other industrialized countries.
. Reduction in supply should support Treasury prices.
. Lower interest rate levels continue to cushion equity corrections.
As market volatility increases, it is important for investors to remember
their long-term investment goals when making investment decisions. While one
sector may look more appealing than others due to recent performance, it is
essential to understand that past performance is not a predictor of future re-
turns. As market conditions change, you should maintain your long-term invest-
ment strategy if it continues to be appropriate. A hallmark of successful in-
vestors is that they stay focused on their personal financial goals and do not
change investment strategies solely on the basis of short-term market swings.
The MasterWorks Funds(R) were conceived and managed to be a straightforward,
cost-effective way for you, the individual investor, to meet your long-term
investment goals. We trust the Funds are fulfilling your expectations and will
continue to do so. We appreciate your confidence and look forward to continu-
ing to help you meet your investment goals.
August 1998
<PAGE>
MASTERWORKS(R) MARKET OVERVIEW: SIX-MONTH PERIOD ENDING AUGUST 31, 1998
U.S. EQUITY MARKETS
Equity markets around the globe faced strong turbulence during the second
quarter of 1998. The U.S. was no exception and ended the second quarter with
the Dow Jones Industrial Average down 512.61. This came after the year opened
on a bright note with the DJIA cracking the 9000 barrier and reaching a peak on
May 13. The Russell 2000 peaked on April 22 and the S&P 500 hit a new record
high at the end of June.
The drop in stock prices during July and August was directly related to fears
that Asia's deepening recession would negatively affect corporate earnings.
This was reminiscent of the drop in stock prices last fall when the first wave
of the Asian crisis rippled through the world's equity markets. Investors and
analysts were forced to lower their earnings forecasts for the fourth quarter
of last year and the first quarter of 1998. This more recent wave of bad news
from Asia forced downward revisions to second quarter earnings forecasts and
called into question the outlook for earnings during the second half of the
year.
Concerns over Asia's continued economic malaise, along with new concerns
about the viability of the Russian economy, came on top of growing fears of
lackluster earnings from corporate America. Fears of mediocre earnings
performance are based on rising labor costs, lack of stable pricing and the
strong U.S. dollar. A strong U.S. dollar typically lowers sales abroad and
diminishes the value of profits repatriated to the U.S. Another potential
negative factor relates to the political uncertainty created by the Starr
investigation of President Clinton.
One motto for investors over the past three and a half years has been Bigger
is Better, as stocks of larger companies have led a strong market rally while
the stocks of smaller companies have lagged behind. Over the past three and a
half years, the Russell 2000 Index has risen at an annual rate of 18.8% versus
a 29.4% rate for the S&P 500 index. While an 18.8% annual rate of gain is
commendable performance on an absolute basis, it did significantly trail large-
capitalization stocks.
This large relative underperformance continued during the first half of 1998,
despite the view that smaller firms, being more domestically oriented, are
better insulated from foreign economic factors.
2
<PAGE>
MASTERWORKS(R) MARKET OVERVIEW
U.S. FIXED INCOME MARKETS
The bond market rally, which began in April of 1997, stalled during the first
quarter of 1998, but returned in full force during the second quarter. Yields
on Treasury securities with maturities under two years did not decline much
because of support from the 5.50% federal funds rate. Yields on Treasury
securities between five and thirty years fell to a much greater extent, with
the largest decline occurring on the 30-year Treasury bond. In fact, the yield
on the 30-year Treasury bond fell to its lowest level since the U.S. Treasury
began regular auctions of 30-year bonds.
A number of factors came together to re-ignite the rally in the fixed income
markets during the second quarter:
. The largely self-reinforcing low inflation foundation remained in place,
providing the backdrop against which fixed income yields could fall.
. Continued turmoil in Russia's economic and political systems negatively
impacted most major equity markets.
. In 1998, the Federal budget will record a surplus, estimated to be between
$50 to $80 billion, for the first time in twenty-eight years. The fiscal
conservativeness of the government has reduced the supply of new debt and has,
therefore, put downward pressure on yields.
. The Treasury market benefited from another bout of "flight to quality" from
investors around the globe due to renewed concerns over the Asian crisis.
. The economic weakness in Asia has caused commodity prices to fall, sending
ripples of deflation into economies and financial markets around the world.
. The manufacturing sector is now being impacted by the problems in Asia
which will slow the economy's growth rate during the second half of 1998.
The Federal Reserve has demonstrated a willingness to test the concept of a
"new age" and refrain, at least temporarily, from tightening monetary policy.
The "new age" school believes that there is a more productive, largely
inflation-resistant and less cyclical economy at work today.
Continued weakness in emerging markets around the globe helped drive a strong
flight to quality that helped Treasury bonds throughout the second quarter. As
the yield on the ten-year Treasury note broke
3
<PAGE>
below the 5.0% level, the mortgage-backed market once again was buffeted by
prepayment fears as refinance activity began to heat up. The mortgage-backed
market will continue to be under considerable pressure going forward as long as
fixed income yields remain at historically low levels and consumer confidence
and income levels remain high. The corporate bond market underperformed the
Treasury market for both the quarter and the year to date, as investors
struggled with the combination of a heavy calendar of new issue supply and
concerns that the slowdown in Southeast Asia might cause more of a downturn in
the domestic economy than was originally anticipated.
INTERNATIONAL EQUITY MARKETS
The MSCI EAFE Index (Morgan Stanley Capital International--Europe, Australia,
Far East Index) remained largely unchanged during the second quarter and masked
disparate performance between its European and Pacific components. European
stocks were the best performers around the globe during each of the first two
quarters of the year. The Economic and Monetary Union (EMU), scheduled to
commence on January 1, 1999, has set off a series of positive events.
The strict adherence to certain economic targets required of EMU charter
members has forced several European governments to practice some
uncharacteristic monetary and fiscal discipline. The result has been the best
combination of low inflation, low interest rates, and fiscal responsibility
seen throughout Europe in quite some time. Moreover, the renewed focus of
corporate America on enhancing share value through greater profitability and
productivity has spread to Europe. European companies are aggressively cutting
costs, restructuring and becoming more profitable. The result has been higher
earnings and expansions in price/earnings multiples.
The investment climate in Europe stands in stark contrast to the Pacific Rim,
which is dominated by Japan. Weakening economies, credit shortages and falling
currency values led to a drop of 8.8% (in U.S. dollars) in developed Asian
markets during the second quarter. However, there are slight hints that Japan
may be turning the corner. The U.S. intervened in the currency markets in late
June to support the yen for the first time since 1992. While markets are not
swayed by the notion that currency intervention alone is a fundamental fix,
they take comfort in the assumption that agreements had been worked out between
the leaders of Japan and the other members of the G-7 as a condition of
intervention. Japan has at least two major economic problems. One is a moribund
level of domestic demand that is insufficient to give the domestic economy the
necessary stimulus. The other is a banking system burdened by an estimated
$700-800 billion of
4
<PAGE>
MASTERWORKS(R) MARKET OVERVIEW
bad loans. These loan problems have effectively shut-off lending to small and
medium-sized companies, a key part of the Japanese economy. Quick action by the
Japanese government in implementing permanent tax cuts and restructuring the
ailing banking system is needed. If this happens, it could be the catalyst that
revives Asian economies. Given the current low valuations, there could be a
significant rally in the Pacific Rim.
The world's emerging markets turned sharply lower during the second quarter
after a modest rebound during the first quarter, which followed a 17.5% drop
during the fourth quarter of 1997. The emerging Asian economies are caught in a
self-perpetuating downward spiral of falling demand, collapsing output, rising
unemployment, and sinking business and consumer confidence. The increasing
financial fragility of companies is causing banks to cut back lending and the
resulting credit crunch is compounding the difficulties.
5
<PAGE>
ASSET ALLOCATION FUND
<TABLE>
<S> <C>
Average annual
(PERFORMANCE AS OF 8/31/98) total return
- ---------------------------------------------------------------
One Year 12.12%
Life of Fund (7/2/93-8/31/98) 12.74%
</TABLE>
Average annual return for the indicated periods represents the average annual
increase in value of an investment over the indicated periods assuming rein-
vestment of dividends and capital gain distributions at net asset value. Past
performance is not predictive of future results. The investment return and
principal value of the shares of the Fund will fluctuate with market conditions
so that shares of the Fund, when redeemed, may be worth more or less than their
original cost.
The Fund's per share net asset value (NAV) declined from $13.50 on February 28,
1998, to $12.87 on August 31, 1998, and cumulative dividends from NET
Investment Income for the period (3/1/98-8/31/98) were approximately $0.149866
per share. Of course, past performance is no indication of future results.
After a strong showing in June and the first half of July, equities lost
momentum towards the end of August. Warnings that accompanied second quarter
earnings reports were the main cause of the slow down. Generally, the reports
of actual second quarter earnings were interpreted positively, but companies
warned that the second half would be rougher on earnings, causing the S&P 500
to fall 1.06%. Bonds retreated 0.68% as a new government in Japan increased the
prospect for economic reforms and diminished the flight to quality that has
been a major factor in the Treasury market for much of the year. On the equity
side, the period was dominated by large capitalization companies' earnings
reports. As the news trickled in, it appeared that the Asian crisis had less of
an effect on second quarter earnings than originally anticipated, and most
earnings came in equal to or ahead of estimates. This prompted a strong first
half of August, pushed mostly by large gains in a small number of stocks.
However, it was not long before nervousness set in as numerous companies began
to caution that the remainder of 1998 may not be as positive. The immediate
concern over earnings dominated other broad economic news that showed the
economy continuing its strong growth with little inflation. Consumer prices
rose just 1.70% over the last 12 months, near the lowest levels in a decade.
Consumer spending also remained robust, and unemployment continued to hover
near historic lows. Combined, these events could have produced positive results
for bonds. Instead, the notion that the flight to quality witnessed during the
last several months would soon come to an end dominated the market, pushing
bond returns into negative territory.
6
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
ASSET ALLOCATION FUND (CONTINUED)
The Fund's rebalances are driven primarily by yield spreads between the equity
and bond sectors. With equity yield measures showing greater strength for much
of 1998 to date, allocations for the Asset Allocation fund were 80% stocks, 20%
bonds and 0% cash as of 8/31/98.
7
<PAGE>
BOND INDEX FUND
<TABLE>
<S> <C>
Average annual
(PERFORMANCE AS OF 8/31/98) total return
- ---------------------------------------------------------------
One Year 11.70%
Life of Fund (7/2/93-8/31/98) 6.64%
</TABLE>
Average annual total return for the indicated periods represents the average
annual increase in value of an investment over the indicated periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
Past performance is not predictive of future results. The investment return and
principal value of the shares of the Fund will fluctuate with market conditions
so that the shares of the Fund, when redeemed, may be worth more or less than
their original cost.
The Fund's per share net asset value (NAV) grew from $9.73 on February 28, 1998
to $9.93 on August 31, 1998, and cumulative dividends from Net Investment
Income for the period (3/1/98-8/31/98) were approximately $0.309225 per share.
Of course, past performance is no indication of future results.
The U.S. Bond Market began the second half of 1998 on a weak note, as the
Lehman Brothers Aggregate Bond Index return of 0.21% in July was the second
lowest monthly return of the year. A widening web of negative political and
economic developments in both Japan and Russia gave rise to a massive flight in
quality during August. The resignation of Japan's Prime Minister, after an
election rebuke of his party, led to anticipation that his successor would more
readily adopt policies to stimulate Japan's weak economy and address their
banking crisis. On the U.S. economic front, GDP increased 1.40% during the
second quarter, substantially slower than the 5.50% first quarter pace.
Nevertheless, consumer spending remained robust, and the GDP slowdown was
attributable to the eight-week long GM strike (which came to an end in July), a
rising trade deficit and lower inventories.
Federal Reserve Chairman Alan Greenspan recently indicated that the Fed
currently does not view inflation as a primary concern. He suggested that the
Fed is not likely to raise rates soon because he expects the economy will
transition to a slower, more sustainable growth rate without Fed intervention.
The combination of a healthy U.S. economy and low inflation caused the yield
difference between short-term and long-term bonds to decline in the past six
months. The difference between the yield of 3-month T-bills and the yield of
the 30-year T-bonds declined from 0.61% to 0.44% during the period. Lower
yields lead to higher bond prices and for a given drop in interest rates the
price is higher for long duration bonds than for short duration bonds.
8
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
GROWTH STOCK FUND
<TABLE>
<S> <C>
Average annual
(PERFORMANCE AS OF 8/31/98) total return
- ----------------------------------------------------------------
One Year (18.87%)
Life of Fund (7/2/93-8/31/98) 9.06%
</TABLE>
Average annual total return for the indicated periods represents the average
annual increase in value of an investment over the indicated periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
Past performance is not predictive of future results. The investment return and
principal value of the shares of the Fund will fluctuate with market conditions
so that the shares of the Fund, when redeemed, may be worth more or less than
their original cost.
The Fund's manager has voluntarily waived portions of its fees to the Fund,
which has reduced operating expenses for shareholders. Without this reduction,
the Fund's returns would have been lower.
The Fund's per share net asset value (NAV) declined from $15.74 on February 28,
1998, to $12.24 on August 31, 1998, and cumulative dividends from Net
Investment Income for the period (3/1/98-8/31/98) were approximately $0 per
share. Of course, past performance is no indication of future results.
Lower commodity prices, low interest rates and the lack of restrictive monetary
intervention propelled mid-cap stocks higher during the first half of 1998. The
consumer cyclicals, consumer services and technology sectors led to the Funds
positive performance during the period.
Two notable companies in the Fund's portfolio, American Online (internet play)
and Concord EFS (transaction processor), were benefactors of a strong front-end
economy. Another strong group the Fund has targeted for is the radio industry,
where the Fund has positions in Chancellor Media, Capstar Broadcasting and
Jacor Communications. The radio industry is benefiting from a strong pricing
environment and an abundance of deregulated industries wanting to reach
potential customers through advertising.
Technology and related services remained very strong through the quarter. HBO
and Co., the clear leader in healthcare information technology, and Network
Associates, the emerging market leader in enterprise network security and
management software, both continued to perform well in the first half.
We continue to believe that there is value in mid and small cap growth stocks.
As we have mentioned numerous times over the last few quarters, mid and small
cap equities, based on both relative valuations and earnings growth, offer
compelling values based on a risk/reward
9
<PAGE>
GROWTH STOCK FUNDS (CONTINUED)
relationship versus larger cap stocks. We continue to favor domestic companies
with overweight positions in business services/technology, healthcare and
consumer cyclicals. The pharmaceuticals services sector is an area in which we
have been concentrating. They are beneficiaries from the trend of research and
development outsourcing by large companies.
10
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
LIFEPATH(R) FUNDS
Average Annual
PERFORMANCE AS OF 8/31/98 Total Return
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Life of Fund
(3/1/94-
Fund One Year 8/31/98)
---- -------- ------------
<S> <C> <C>
LifePath 2000 6.69% 7.71%
LifePath 2010 6.74% 11.10%
LifePath 2020 6.30% 13.09%
LifePath 2030 6.09% 14.61%
LifePath 2040 4.42% 15.93%
</TABLE>
Average annual total return for the indicated periods represents the average
annual increase in value of an investment over the indicated periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
Past performance is not predictive of future results. The investment return and
principal value of the shares of the Fund will fluctuate with market conditions
so that the shares of the Fund, when redeemed, may be worth more or less than
their original cost.
The Funds are successors to the assets of the Institutional Class shares of the
Stagecoach Trust LifePath Funds (the "Predecessor Funds") which commenced oper-
ations on March 1, 1994. Performance information for periods prior to March 26,
1996, the Funds' commencement of operations, reflects the performance of the
Predecessor Funds.
The table below shows each Fund's per share net asset value (NAV) as of
February 28, 1998 and August 31, 1998 and the cumulative dividends per share
from Net Investment Income for the indicated period:
<TABLE>
<CAPTION>
Cumulative
Dividends
Per Share From
Net Investment
NAV Per Share NAV Per Share Income
Fund As of 2/28/98 As of 8/31/98 3/1/98-8/31/98
---- ------------- ------------- --------------
<S> <C> <C> <C>
LifePath 2000 $11.56 $11.38 $0.224052
LifePath 2010 $13.90 $13.37 $0.192689
LifePath 2020 $15.73 $14.73 $0.165820
LifePath 2030 $17.39 $16.00 $0.135269
LifePath 2040 $18.77 $16.89 $0.083797
</TABLE>
The LifePath Funds employ both strategic and tactical asset allocation
techniques to manage their portfolio investments. Of the Fund's total asset
allocation, 75% is strategic in nature and focuses on the Fund's long-term
investment allocation. The strategic allocation is determined by the tradeoff
between expected returns and risks for each asset class
11
<PAGE>
based on the time horizon of the Fund. As each Fund nears its target date, the
allocation becomes more conservative, shifting to less risky assets such as
shorter-duration fixed income and money market instruments. Short-term
volatility in the markets has only a small effect on a Fund's long-term
strategic allocation. The progression to less risky assets is a continuous
process resulting in only minor monthly changes to the asset allocation. Forty
years from now, the strategic allocation of LifePath 2040 Fund will look very
similar to the current strategic allocation of the LifePath 2000 Fund.
Tactical allocation techniques are used to make up the remaining 25% of each
Fund's entire investment allocation. This method attempts to take advantage of
shorter-term market conditions by shifting Fund investments into assets that
appear undervalued on a risk-adjusted basis. The Funds use two types of
tactical allocations. The more conservative tactical approach of shifting from
long duration bonds to short duration bonds and cash plays a larger role in the
LifePath 2000 Fund than in the other Funds. The LifePath 2040 Fund, for
example, makes more use of the second and more aggressive tactical allocation
which shifts assets between stocks, bonds and cash.
The allocations of the Funds at the start of the period were as follows:
<TABLE>
<CAPTION>
U.S. International U.S. Money
Fund Equity Equity Bonds Market
---- ------ ------------- ----- ------
<S> <C> <C> <C> <C>
LifePath 2000 14% 7% 71% 8%
LifePath 2010 35% 11% 49% 5%
LifePath 2020 51% 14% 32% 3%
LifePath 2030 62% 17% 19% 2%
LifePath 2040 75% 19% 6% 0
</TABLE>
The LifePath Funds all posted positive returns despite both volatility in the
equity markets during the latter part of the second quarter and a near-second
all-time point decline for the Dow Jones Industrial Average during the same
period.
The U.S. Treasury bond market benefited from a significant move to quality as
Japan's continuing economic malaise threatened to exacerbate the financial
turmoil engulfing many of the countries of Southeast Asia. And while the U.S.
economy finally began to show signs of moderation from the robust growth of the
first quarter, bond investors in the U.S. seemed to focus more on the U.S.
dollar/Yen exchange rate than on domestic economic data.
12
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
By the end of the period, the Funds, allocations were as follows:
<TABLE>
<CAPTION>
U.S. International U.S. Money
Fund Equity Equity Bonds Market
---- ------ ------------- ----- ------
<S> <C> <C> <C> <C>
LifePath 2000 15% 5% 52% 28%
LifePath 2010 35% 10% 44% 11%
LifePath 2020 52% 15% 26% 7%
LifePath 2030 62% 19% 15% 4%
LifePath 2040 79% 21% 0% 0%
</TABLE>
The yield curve flattened during the period as three-month T-bill yields rose,
while yields of intermediate- and long-term bonds declined. The intermediate
portion of the yield curve inverted, the two-year bonds, at 5.48%, yielded more
than the 10-year bonds, at 5.45%. All Treasury securities, from T-bills to
those with 10-year maturities now yield less than the federal funds target
rate, which stands at 5.50%. The 30-year T-bond yield declined the most,
falling from 5.80% to 5.63%, the lowest monthly close since the Treasury began
regular auctions of 30-year bonds in 1977.
In general, the dramatic rise in equity prices over the past three-and-one-half
years can be attributed to strong and stable corporate earnings growth,
capitalized at higher valuations because of the drop in bond yields. Earnings,
as measured by the S&P 500, have grown every year since 1991 and are projected
to rise this year and next. This consistent earnings pattern is more highly
valued by investors than is a period of faster gains followed by a sharp
decline in earnings. Hence, the high overall Price to Earnings ratio (P/E) of
the market is similar to a higher P/E on a consistent growth stock as compared
to the P/E of a cyclical firm. In addition to a steady earnings pattern, the
growth rate for S&P 500 stock earnings has been quite high at 14% over the past
five years, as compared with a long-run average of a little over 6%. It would
appear that the strong demand for equities and the positive interest rate
environment will continue in the foreseeable future.
13
<PAGE>
S&P 500 STOCK FUND
<TABLE>
<S> <C>
Average annual
(PERFORMANCE AS OF 8/31/98) total return
- ---------------------------------------------------------------
One Year 7.83%
Life of Fund (7/2/93-8/31/98) 18.19%
</TABLE>
Average annual total return for the indicated periods represents the average
annual increase in value of an investment over the indicated periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
Past performance is not predictive of future results. The investment return and
principal value of the shares of the Fund will fluctuate with market conditions
so that the shares of the Fund, when redeemed, may be worth more or less than
their original cost.
The Fund's per share net asset value (NAV) declined from $22.08 on February 28,
1998 to $20.13 on August 31, 1998, and cumulative dividends from Net Investment
Income for the period (3/1/98-8/31/98) were approximately $0.171396 per share.
Of course, past performance is no indication of future results.
After a solid performance in the first half of 1998, the equity market started
its tumble on July 21 when Federal Reserve Chairman Alan Greenspan, testifying
before the Senate Banking Committee, disappointed investors by not hinting at a
rate cut and instead warning that stocks were overvalued. Concerns on soft
earnings and troubles in Asia resurfaced to quickly cool the record-shattering
market. Disappointing earnings reports from "nifty-fifty" companies like
Boeing, Merck, Disney and Hewlett-Packard pushed the market lower. All this led
to a near record point decline of the S&P 500 Index from a 12-month high of
1186.75 to a close of 957.28 on August 31.
The five-year annualized total return of the S&P 500 Index for the period
ending August 31, 1998 was 18.25%. The consensus in the market is that the
remainder of 1998 will be volatile with daily 100-150 point moves in the Dow
becoming commonplace.
The July-August swoon in stock prices was largely attributable to Asia-related
concerns over earnings. Reflecting the toll that Asia has taken on U.S.
companies, operating profits on the S&P 500 grew only 4.4% during the first
quarter of 1998, the smallest growth since 1991. Much of the damage, however,
can be traced to falling demand for two products: oil and semiconductors. The
Asian impact on earnings has been highly concentrated in certain areas, while
other sectors such as financial services and pharmaceuticals have seen little
effect. Retailers, airlines, and producers of consumer non-durables have been
positively impacted.
14
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
S&P 500 STOCK FUND (CONTINUED)
From another perspective, 85% of the earnings generated by the companies in the
S&P 500 come from the U.S., Canada, and Europe. All three of these regions are
enjoying stable economic growth, and while the translation of earnings from
Canada and Europe will be hurt by the strong U.S. dollar, the earnings engine
is running smoothly.
It also should be said that a confluence of positive events have come together
to generate the extraordinary returns in the past three and a half years
(pushing the S&P 500 price index up 84% in the process) and have taken
valuation levels to a point where it is more difficult to argue that common
stocks are undervalued. As such, returns closer to the 11.0% compound annual
returns that the S&P Index has generated since 1926 are more likely to continue
in the foreseeable future.
15
<PAGE>
SHORT-INTERMEDIATE TERM FUND
<TABLE>
<S> <C>
Average Annual
PERFORMANCE AS OF 8/31/98 Total Return
- ---------------------------------------------------------------
One Year 8.78%
Life of Fund (7/2/93-8/31/98) 5.62%
</TABLE>
Average annual total return for the indicated periods represents the average
annual increase in value of an investment over the indicated periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
Past performance is not predictive of future results. The investment return and
principal value of the shares of the Fund will fluctuate with market conditions
so that the shares of the Funds, when redeemed, may be worth more or less than
their original cost.
The Fund's per share net asset value (NAV) increased from $9.35 on February 28,
1998 to $9.45 on August 31, 1998, and cumulative dividends from Net Investment
Income for the period (3/1/98-8/31/98) were approximately $0.275591 per share.
Of course, past performance is no indication of future results.
Throughout the past six months, interest rates have continued to trend lower
due to concerns over Southeast Asia and a tremendous amount of "flight to
quality' capital moving into the U.S. Treasury market. Two and ten year
treasury notes declined by approximately 0.60% to yield 4.76% and 4.97%
respectively. In addition, volatility in the equity markets and heightened
concerns over corporate earnings resulted in substantial spread widening in the
corporate bond market. Spreads on high quality intermediate corporate bonds
have widened by 15 to 30 basis points.
Within this environment we have maintained the duration of the Fund's average
weighted portfolio maturity at levels 15% to 20% longer than the Fund's
benchmark, the Lehman Brothers Intermediate Government/Corporate bond index.
This strategy has enabled the fund to participate in price appreciation as
interest rates have declined.
Within the corporate sector we have taken several steps to limit our exposure:
1. The percentage weighting in corporate bonds has been reduced by
approximately 10%.
2. Shorter maturity corporates have been emphasized over longer corporates. The
long corporate sector has experienced the brunt of the sell-off.
3. Our corporate sector strategy has focused on domestic issuers with strong
cash flow characteristics and no Asian exposure.
16
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
SHORT-INTERMEDIATE TERM FUND (CONTINUED)
This combined approach has contributed to the Fund's out-performance of its
benchmark.
Going forward we expect the U.S. economy to slow and interest rates to remain
low. The duration of the Fund will remain 10%-20% longer than the benchmark.
Corporate spreads are at their widest of the decade and are nearing levels that
represent value. As the equity markets stabilize we will selectively increase
our corporate exposure by 10%.
17
<PAGE>
US TREASURY ALLOCATION FUND
<TABLE>
<S> <C>
Average annual
PERFORMANCE AS OF 8/31/98 total return
- ---------------------------------------------------------------
One Year 7.69%
Life of Fund (7/2/93-8/31/98) 5.57%
</TABLE>
Average annual total return for the indicated periods represents the average
annual increase in value of an investment over the indicated periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
Past performance is not predictive of future results. The investment return and
principal value of the shares of the Fund will fluctuate with market conditions
so that the shares of the Fund, when redeemed, may be worth more or less than
their original cost.
The Fund's per share net asset value (NAV) increased from $9.40 on February 28,
1998, to $9.47 on August 31, 1998, and cumulative dividends from Net Investment
Income for the period (3/1/98-8/31/98) were approximately $0.244373 per share.
Of course, past performance is no indication of future results.
During the second quarter of 1998, the total return for the Fund was 1.39%. The
Fund and benchmark index returns for the quarter were as follows:
<TABLE>
<CAPTION>
Rank
----
<S> <C> <C>
Lehman Brothers 20+ Treasury Index 5.15% 1st
Lehman Brothers 5-7 Treasury Index 2.27% 2nd
U.S. Treasury Allocation Fund Total Return 1.39% 3rd
US Treasury Bills (3-month) 1.34% 4th
</TABLE>
The Fund's objective is to invest in the combination of long-term maturity
Treasury bonds, intermediate term Treasury notes, and money-market securities
that offers the optimum tradeoff of risk and return. The Fund selects the most
attractive mix by comparing the expected return, risk and correlation of long,
intermediate, and short-term Treasury securities.
The combination of a healthy U.S. economy and low inflation caused the yield
difference between short-term and long-term bonds to decline over the past six
months. The difference between the yield of 3-month T-Bills and the yield of
30-year T-Bonds declined from 0.61% to 0.44%. Lower yields lead to higher bond
prices, and for a given drop in interest rates, the price increase is greater
for long duration bonds than for shorter duration bonds. Therefore, over this
period, returns for long-term Treasury bonds were higher than the returns for
intermediate-term notes and for money market securities.
18
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
US TREASURY ALLOCATION FUND (CONTINUED)
The Fund alters its holdings in long-term Treasury bonds, intermediate-term
Treasury notes, and Treasury bills based on relative yield differences between
the securities. The Bond/Note/Cash mix was 10/20/70 as of March 1, 1998. The
mix at the end of March remained 10/20/70 and was changed on April 28 to a
0/40/60 mix. The mix remained at 0/40/60 until August 25, when it changed to
10/10/80.
Since risk and correlation change more gradually than expected returns, changes
in the Fund's mix are much more responsive to changes in the expected returns
of the three maturity classes.
In summary, longer maturity bonds are riskier than shorter maturity bonds.
Since longer maturity bonds currently offer meager compensation--in the form of
incremental yield--for bearing that higher risk, the Fund is invested in a
conservative mix, consisting of a high allocation to cash.
19
<PAGE>
MONEY MARKET FUND
<TABLE>
<S> <C>
PERFORMANCE AS OF 8/31/98 7-day Yield
- ---------------------------------------------------------------
5.22%
</TABLE>
Problems in the Asian financial sector continue to act as a buffer on growth
here in the U.S. This has caused the Federal Reserve to keep interest rates
unchanged for the past fifteen months. While U.S. growth continues to be
relatively strong, the events in Asia are expected to prevent any over-heating.
As a result, interest rates are expected to remain flat or lower for the
balance of the year. The money market yield curve continues to be flat, with 6
months-year rates expected to trade in a narrow range. The Fund will continue
to maintain adequate maturities in the front end of the curve, providing a high
level of liquidity with little or no sacrifice in yield. The Fund also will
selectively invest in longer dated securities when yields are at the upper end
of their expected range. The average weighted maturity of the Fund will
typically run 55-70 days, with an emphasis on high credit quality of securities
rated A1/P1 or greater, by S&P/Moody's, respectively.
20
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
21
<PAGE>
MONEY MARKET FUND--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
YIELD TO MATURITY
PRINCIPAL SECURITY NAME MATURITY DATE VALUE
<C> <S> <C> <C> <C>
CERTIFICATES OF DEPOSIT-8.18%
$6,000,000 Abbey National PLC 5.55% 01/26/99 $ 5,998,841
8,000,000 Societe Generale NA Inc 5.60 01/13/99 7,999,156
------------
TOTAL CERTIFICATES OF DEPOSIT $ 13,997,997
COMMERCIAL PAPER-61.75%
$7,000,000 Associates Corp NA 5.50% 11/04/98 $ 6,894,125
8,000,000 BTR Dunlop Finance Inc 5.50 11/13/98 7,893,667
6,000,000 Corporate Receivables Inc 5.51 10/08/98 5,916,432
7,000,000 CXC Inc 5.51 11/17/98 6,903,575
6,000,000 Deutsche Bank Financial Inc 5.49 10/13/98 5,943,270
4,000,000 First National Bank Chicago 5.75 05/08/99 3,998,686
6,000,000 Ford Motor Credit 5.50 10/30/98 5,913,833
5,000,000 General Electric Co 5.43 09/09/98 4,861,988
3,000,000 Goldman Sachs Group LP 5.51 09/17/98 2,944,900
5,000,000 Greenwich Funding Corp 5.53 10/26/98 4,932,411
7,000,000 Monte Rosa Capital Corp 5.53 10/15/98 6,925,806
8,000,000 Prudential Funding Corp 5.52 09/17/98 7,965,653
3,000,000 Suntrust Banks 5.51 10/16/98 2,958,216
7,000,000 UBS Financial Inc 5.46 01/04/99 6,807,838
5,000,000 USAA Capital Corp 6.34 09/18/98 5,018,000
6,000,000 WCP Funding Inc 5.53 09/18/98 5,948,387
7,000,000 Windmill Funding Corp 5.53 10/16/98 6,924,731
7,000,000 Xerox Credit Corp 5.47 11/05/98 6,903,211
------------
TOTAL COMMERCIAL PAPER $105,654,729
</TABLE>
22
<PAGE>
MONEY MARKET FUND--AUGUST 31, 1998 (UNAUDITED)
MONEY MARKET FUND--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
YIELD TO MATURITY
PRINCIPAL SECURITY NAME MATURITY DATE VALUE
<C> <S> <C> <C> <C>
VARIABLE & FLOATING RATE NOTES-29.63%
$3,000,000 Comerica Bank Detroit 5.51% 12/14/98 $ 2,999,838
6,800,000 FHLMC 5.70 09/01/98 6,798,923
8,000,000 FHLMC 5.45 09/17/98 7,967,300
8,000,000 FHLMC 5.45 10/07/98 7,932,178
1,000,000 Ford Motor Credit 8.00 01/15/99 1,017,287
6,000,000 Huntington National Bank 5.64 12/09/98 5,999,763
8,000,000 Key Bank NA 5.55 02/24/99 7,997,376
3,000,000 U.S. Bank 5.65 10/27/98 3,000,000
7,000,000 Wachovia Bank 5.50 05/14/99 6,996,625
------------
TOTAL VARIABLE & FLOATING RATE NOTES $ 50,709,290
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL
INVESTMENT IN
SECURITIES
(Cost
$170,362,016)
** (Notes 1
and 3) 99.56% $170,362,016
Other Assets
and
Liabilities,
Net 0.44% 745,172
------ ------------
TOTAL NET
ASSETS 100.00% $171,107,188
====== ============
</TABLE>
- --------------------------------------------------------------------------------
** Cost for income tax purposes is the same as for financial statement purpos-
es.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Asset Bond
Allocation Index
Fund Fund
- ------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In corresponding Master Portfolio, at market value
(Note 1) $488,340,508 $102,611,320
Cash 0 0
RECEIVABLES:
Dividends and interest 0 0
Fund shares sold 0 0
TOTAL ASSETS 488,340,508 102,611,320
LIABILITIES
PAYABLES:
Capital shares redeemed 0 0
Distribution to shareholders 919,860 482,097
Due to BGI and Stephens (Note 2) 123,677 15,745
TOTAL LIABILITIES 1,043,537 497,842
TOTAL NET ASSETS $487,296,971 $102,113,478
NET ASSETS CONSIST OF:
Paid-in capital 390,878,384 100,132,631
Undistributed net investment income 39,076 43,686
Undistributed net realized gain (loss) on
investments 52,302,784 (154,807)
Net unrealized appreciation (depreciation) on
investments 44,076,727 2,091,968
TOTAL NET ASSETS $487,296,971 $102,113,478
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
PER SHARE
Net Assets $487,296,971 $102,113,478
Shares outstanding 37,873,037 10,285,837
Net asset value and offering price per share $ 12.87 $ 9.93
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES--AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Growth LifePath LifePath LifePath LifePath
Stock 2000 2010 2020 2030
Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 168,701,468 $ 46,422,944 $113,136,198 $ 141,486,426 $ 91,004,153
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
168,701,468 46,422,944 113,136,198 141,486,426 91,004,153
0 0 0 0 0
0 0 0 0 0
22,965 11,202 31,178 41,412 28,116
22,965 11,202 31,178 41,412 28,116
$ 168,678,503 $ 46,411,742 $113,105,020 $ 141,445,014 $ 90,976,037
166,678,400 43,593,656 101,486,132 121,927,136 78,482,602
0 308,423 582,002 507,875 222,646
34,772,888 1,480,736 3,725,091 5,629,059 3,128,923
(32,772,785) 1,028,927 7,311,795 13,380,944 9,141,866
$ 168,678,503 $ 46,411,742 $113,105,020 $ 141,445,014 $ 90,976,037
$ 168,678,503 $ 46,411,742 $113,105,020 $ 141,445,014 $ 90,976,037
13,782,521 4,077,353 8,460,785 9,603,250 5,686,679
$ 12.24 $ 11.38 $ 13.37 $ 14.73 $ 16.00
- ---------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
LifePath
2040
Fund
- -----------------------------------------------------------------------
<S> <C>
ASSETS
INVESTMENTS:
In corresponding Master Portfolio, at market value
(Note 1) $125,556,574
Cash 0
RECEIVABLES:
Dividends and interest 0
Fund shares sold 0
TOTAL ASSETS 125,556,574
LIABILITIES
PAYABLES:
Capital shares redeemed 0
Distribution to shareholders 0
Due to BGI and Stephens (Note 2) 35,165
TOTAL LIABILITIES 35,165
TOTAL NET ASSETS $125,521,409
NET ASSETS CONSIST OF:
Paid-in capital 114,055,913
Undistributed net investment income 122,830
Undistributed net realized gain (loss) on investments 4,020,652
Net unrealized appreciation (depreciation) on investments 7,322,014
TOTAL NET ASSETS $125,521,409
COMPUTATION OF NET ASSET VALUE AND
OFFERING PRICE PER SHARE
Net Assets $125,521,409
Shares outstanding 7,429,953
Net asset value and offering price per share $16.89
- -----------------------------------------------------------------------
</TABLE>
* The Money Market Fund does not invest in a corresponding Master Portfolio.
The cost of securities held at August 31, 1998 is the same as the market val-
ue.
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES--AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Short-
Money S&P Intermediate U.S. Treasury
Market 500 Stock Term Allocation
Fund* Fund Fund Fund
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
$170,362,016 $2,001,521,461 $10,738,763 $45,673,841
81,144 0 0 0
1,551,135 0 0 0
0 0 0 0
171,994,295 2,001,521,461 10,738,763 45,673,841
0 0 0 0
697,947 0 48,752 182,291
189,160 263,138 6,779 9,086
887,107 263,138 55,531 191,377
$171,107,188 $2,001,258,323 $10,683,232 $45,482,464
171,169,454 1,311,977,037 10,764,591 49,169,780
0 5,658,983 7,622 16,927
(62,266) 61,473,588 (269,517) (3,887,732)
0 622,148,715 180,536 183,489
$171,107,188 $2,001,258,323 $10,683,232 $45,482,464
$171,107,188 $2,001,258,323 $10,683,232 $45,482,464
171,168,960 99,409,266 1,130,096 4,803,320
$ 1.00 $ 20.13 $ 9.45 $ 9.47
- ---------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Asset Bond
Allocation Index
Fund Fund
- -----------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME
ALLOCATED FROM MASTER PORTFOLIO
Dividends $ 2,795,076 $ 0
Interest 5,166,972 3,197,488
Expenses (977,805) (39,137)
NET INVESTMENT INCOME (LOSS) ALLOCATED FROM
MASTER PORTFOLIO 6,984,243 3,158,351
EXPENSES (NOTE 2)
Administration fees 1,116,732 73,338
Advisory fees 0 0
TOTAL EXPENSES 1,116,732 73,338
Less:
Waived fees 0 0
Net expenses 1,116,732 73,338
NET INVESTMENT INCOME (LOSS) 5,867,511 3,085,013
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIOS
Net realized gain (loss) on sale of investments 44,025,252 2,898
Net change in unrealized appreciation
(depreciation) of investments (66,929,013) 1,954,933
NET GAIN (LOSS) ON INVESTMENTS (22,903,761) 1,957,831
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $(17,036,250) $5,042,844
- -----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
STATEMENT OF OPERATIONS--FOR THE SIX MONTHS ENDED AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Growth LifePath LifePath LifePath LifePath
Stock 2000 2010 2020 2030
Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 246,005 $ 106,548 $ 518,534 $ 987,607 $ 800,627
281,344 1,070,492 1,754,740 1,422,930 505,680
(700,265) (136,351) (333,327) (436,174) (288,145)
(172,916) 1,040,689 1,939,947 1,974,363 1,018,162
210,023 99,100 242,231 317,008 209,477
0 0 0 0 0
210,023 99,100 242,231 317,008 209,477
23,342 0 0 0 0
186,681 99,100 242,231 317,008 209,477
(359,597) 941,589 1,697,716 1,657,355 808,685
31,156,651 900,881 2,298,166 3,602,603 2,186,257
(78,347,512) (1,607,932) (7,026,935) (13,459,059) (10,406,957)
(47,190,861) (707,051) (4,728,769) (9,856,456) (8,220,700)
$(47,550,458) $ 234,538 $(3,031,053) $ (8,199,101) $ (7,412,015)
- ----------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
LifePath
2040
Fund
- ------------------------------------------------------------------------------
<S> <C>
NET INVESTMENT INCOME
ALLOCATED FROM MASTER PORTFOLIO
Dividends $ 1,243,205
Interest 59,152
Expenses (399,548)
NET INVESTMENT INCOME (LOSS) ALLOCATED FROM
MASTER PORTFOLIO 902,809
EXPENSES (NOTE 2)
Administration fees 290,330
Advisory fees 0
TOTAL EXPENSES 290,330
Less:
Waived fees 0
Net expenses 290,330
NET INVESTMENT INCOME (LOSS) 612,479
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED
FROM MASTER PORTFOLIOS
Net realized gain (loss) on sale of investments 2,778,260
Net change in unrealized appreciation (depreciation) of
investments (17,696,991)
NET GAIN (LOSS) ON INVESTMENTS (14,918,731)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(14,306,252)
- ------------------------------------------------------------------------------
</TABLE>
* The Money Market Fund does not have a corresponding Master Portfolio. All
interest is derived from securities held by the Fund.
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
STATEMENT OF OPERATIONS--FOR THE SIX MONTHS ENDED AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Money S&P Short-Intermediate U.S. Treasury
Market 500 Stock Term Allocation
Fund* Fund Fund Fund
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 0 $ 15,727,267 $ 0 $ 0
4,964,170 3,763,917 348,579 1,325,150
0 (584,700) (24,246) (68,450)
4,964,170 18,906,484 324,333 1,256,700
88,679 1,756,835 9,688 91,192
310,377 0 0 0
399,056 1,756,835 9,688 91,192
0 0 0 0
399,056 1,756,835 9,688 91,192
4,565,114 17,149,649 314,645 1,165,508
0 21,733,501 68,140 268,491
0 (224,536,453) 50,612 60,447
0 (202,802,952) 118,752 328,938
$4,565,114 $(185,653,303) $433,397 $1,494,446
- --------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Asset Allocation Fund
-----------------------------------
For the
Six Months Ended For the
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 5,867,511 $ 15,538,218
Net realized gain (loss) on sale of
investments 44,025,252 43,346,185
Net change in unrealized appreciation
(depreciation) of investments (66,929,013) 54,041,438
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (17,036,250) 112,925,841
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (5,840,068) (15,569,560)
From net realized gain (loss) on sale of
investments 0 (45,241,548)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 72,694,105 142,241,923
Net asset value of shares issued in
reinvestment of dividends and
distributions 4,837,013 60,810,816
Cost of shares redeemed (102,103,971) (152,006,433)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS (24,572,853) 51,046,306
INCREASE (DECREASE) IN NET ASSETS (47,449,171) 103,161,039
NET ASSETS:
Beginning net assets 534,746,142 431,585,103
ENDING NET ASSETS $ 487,296,971 $534,746,142
SHARES ISSUED AND REDEEMED:
Shares sold 5,147,874 11,061,652
Shares issued in reinvestment of
dividends and distributions 342,240 4,795,265
Shares redeemed (7,217,813) (11,869,232)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING (1,727,699) 3,987,685
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Bond Index Fund Growth Stock Fund
- ------------------------------------ --------------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
August 31, 1998 Year Ended August 31, 1998 Year Ended
(Unaudited) February 28, 1998 (Unaudited) February 28, 1998
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
$ 3,085,013 $ 7,019,694 $ (359,597) $ (626,408)
2,898 835,418 31,156,651 9,338,409
1,954,933 1,840,981 (78,347,512) 35,007,522
5,042,844 9,696,093 (47,550,458) 43,719,523
(3,069,181) (7,045,500) 0 0
0 0 0 (17,881,314)
24,182,961 45,025,402 40,507,298 135,070,663
2,573,832 7,037,685 0 17,881,293
(20,393,400) (90,406,487) (61,292,326) (154,994,318)
6,363,393 (38,343,400) (20,785,028) (2,042,362)
8,337,056 (35,692,807) (68,335,486) 23,795,847
93,776,422 129,469,229 237,013,989 213,218,142
$102,113,478 $ 93,776,422 $168,678,503 $ 237,013,989
2,467,532 4,679,516 2,518,890 8,923,264
264,047 738,294 0 1,247,823
(2,084,840) (9,514,575) (3,797,199) (10,266,097)
646,739 (4,096,765) (1,278,309) (95,010)
- -----------------------------------------------------------------------------
</TABLE>
33
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2000 Fund LifePath 2010 Fund
-------------------------- --------------------------
For the Six For the Six
Months Ended For the Months Ended For the
August 31, Year Ended August 31, Year Ended
1998 February 28, 1998 February 28,
(Unaudited) 1998 (Unaudited) 1998
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income
(loss) $ 941,589 $ 1,864,159 $ 1,697,716 $ 3,002,621
Net realized gain
(loss) on sale of
investments 900,881 1,498,004 2,298,166 4,019,123
Net change in
unrealized
appreciation
(depreciation) of
investments (1,607,932) 1,944,125 (7,026,935) 9,867,032
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 234,538 5,306,288 (3,031,053) 16,888,776
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income (929,577) (1,873,768) (1,609,129) (2,934,746)
From net realized gain
(loss) on sale of
investments 0 (1,080,895) 0 (3,244,853)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares
sold 18,873,316 29,570,107 35,322,820 50,184,554
Net asset value of
shares issued in
reinvestment of
dividends and
distributions 925,776 2,954,663 1,596,764 6,179,586
Cost of shares redeemed (21,423,777) (32,722,692) (31,609,992) (41,841,291)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS (1,624,685) (197,922) 5,309,592 14,522,849
INCREASE (DECREASE) IN
NET ASSETS (2,319,724) 2,153,703 669,410 25,232,026
NET ASSETS:
Beginning net assets 48,731,466 46,577,763 112,435,610 87,203,584
ENDING NET ASSETS $ 46,411,742 $ 48,731,466 $113,105,020 $112,435,610
SHARES ISSUED AND
REDEEMED:
Shares sold 1,619,581 2,609,621 2,484,595 3,799,100
Shares issued in
reinvestment of
dividends 79,530 263,425 112,046 470,053
Shares redeemed (1,837,879) (2,902,215) (2,222,184) (3,183,053)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING (138,768) (29,169) 374,457 1,086,100
- ---------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2020 Fund LifePath 2030 Fund LifePath 2040 Fund
- -------------------------- -------------------------- --------------------------
For the Six For the Six For the Six
Months Ended For the Months Ended For the Months Ended For the
August 31, Year Ended August 31, Year Ended August 31, Year Ended
1998 February 28, 1998 February 28, 1998 February 28,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,657,355 $ 2,871,213 $ 808,685 $ 1,265,246 $ 612,479 $ 970,721
3,602,603 5,546,369 2,186,257 2,589,572 2,778,260 5,450,601
(13,459,059) 19,345,820 (10,406,957) 14,546,285 (17,696,991) 18,871,946
(8,199,101) 27,763,402 (7,412,015) 18,401,103 (14,306,252) 25,293,268
(1,581,705) (2,828,349) (768,181) (1,235,853) (602,520) (981,497)
0 (4,577,018) 0 (2,146,403) 0 (5,040,363)
32,936,253 62,320,047 26,844,658 48,861,763 57,261,506 85,516,198
1,573,403 7,405,367 762,029 3,382,255 594,411 6,021,811
(31,481,039) (47,300,299) (23,759,660) (30,529,151) (44,027,077) (53,683,581)
3,028,617 22,425,115 3,847,027 21,714,867 13,828,840 37,854,428
(6,752,189) 42,783,150 (4,333,169) 36,733,714 (1,079,932) 57,125,836
148,197,203 105,414,053 95,309,206 58,575,492 126,601,341 69,475,505
$141,445,014 $148,197,203 $90,976,037 $ 95,309,206 $125,521,409 $126,601,341
2,018,833 4,313,443 1,475,735 3,096,468 2,900,215 4,987,356
96,219 509,421 41,659 214,342 29,783 355,815
(1,936,018) (3,266,331) (1,311,376) (1,965,323) (2,243,885) (3,168,342)
179,034 1,556,533 206,018 1,345,487 686,113 2,174,829
- -----------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Money Market Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
- -----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 4,565,114 $ 9,455,062
Net realized gain (loss) on sale of
investments 0 (4,762)
Net change in unrealized appreciation
(depreciation) of investments 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,565,114 9,450,300
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (4,565,114) (9,455,062)
From net realized gain (loss) on sale of
investments 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 95,856,128 219,618,386
Net asset value of shares issued in
reinvestment of dividends and
distributions 4,468,749 9,251,485
Cost of shares redeemed (109,540,693) (225,588,287)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARES
TRANSACTIONS (9,215,816) 3,281,584
INCREASE (DECREASE) IN NET ASSETS (9,215,816) 3,276,822
NET ASSETS:
Beginning net assets 180,323,004 177,046,182
ENDING NET ASSETS $ 171,107,188 $ 180,323,004
SHARES ISSUED AND REDEEMED:
Shares sold 95,856,128 219,618,386
Shares issued in reinvestment of
dividends and distributions 4,468,749 9,251,485
Shares redeemed (109,540,693) (225,588,287)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING (9,215,816) 3,281,584
- -----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
S&P 500 Stock Fund Short-Intermediate Term Fund
- ------------------------------------ ---------------------------------------
For the Six For the Six
Months Ended For the Months Ended For the
August 31, 1998 Year Ended August 31, 1998 Year Ended
(Unaudited) February 28, 1998 (Unaudited) February 28 1998
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 17,149,649 $ 31,240,614 $ 314,645 $ 711,835
21,733,501 67,662,285 68,140 (82,340)
(224,536,453) 444,494,109 50,612 250,239
(185,653,303) 543,397,008 433,397 879,734
(16,909,154) (30,121,261) (312,354) (715,413)
0 (39,697,846) 0 0
486,150,917 859,737,151 1,531,506 2,637,312
16,829,502 69,792,808 222,219 715,374
(591,592,340) (533,699,383) (2,020,694) (5,741,426)
(88,611,921) 395,830,576 (266,969) (2,388,740)
(291,174,378) 869,408,477 (145,926) (2,224,419)
2,292,432,701 1,423,024,224 10,829,158 13,053,577
$2,001,258,323 $2,292,432,701 $10,683,232 $10,829,158
20,773,319 44,359,193 163,336 283,682
717,086 3,561,316 23,819 77,304
(25,885,594) (27,667,316) (215,852) (621,841)
(4,395,189) 20,253,193 (28,697) (260,855)
- ---------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. Treasury Allocation Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
- -----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 1,165,508 $ 2,679,863
Net realized gain (loss) on sale of
investments 268,491 497,222
Net change in unrealized appreciation
(depreciation) of investments 60,447 384,199
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,494,446 3,561,284
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,159,565) (2,677,544)
From net realized gain (loss) on sale of
investments 0 (122,957)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 10,583,384 13,761,242
Net asset value of shares issued in
reinvestment of dividends and
distributions 960,217 2,800,446
Cost of shares redeemed (13,636,936) (17,623,970)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARES
TRANSACTIONS (2,093,335) (1,062,282)
INCREASE (DECREASE) IN NET ASSETS (1,758,454) (301,499)
NET ASSETS:
Beginning net assets 47,240,918 47,542,417
ENDING NET ASSETS $45,482,464 $ 47,240,918
SHARES ISSUED AND REDEEMED:
Shares sold 1,122,895 1,474,632
Shares issued in reinvestment of
dividends and distributions 102,237 301,293
Shares redeemed (1,447,776) (1,897,079)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING (222,644) (121,154)
- -----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
39
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
Asset Allocation Fund
------------------------------------------------------------------
Period From
July 2,
1993
For the Six (Commence-
Months ment of
Ended Year Year Year Year Operations)
August 31, Ended Ended Ended Ended to
1998 February February February February February
(Unaudited) 28, 1998 28, 1997 29, 1996 28, 1995 28, 1994
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $13.50 $12.12 $11.83 $9.93 $10.19 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.15 0.44 0.47 0.40 0.44 0.23
Net realized and
unrealized gain (loss)
on investments (0.63) 2.68 1.02 1.90 (0.14) 0.28
TOTAL FROM INVESTMENT
OPERATIONS (0.48) 3.12 1.49 2.30 0.30 0.51
LESS DISTRIBUTIONS:
From net investment
income (0.15) (0.44) (0.47) (0.40) (0.44) (0.23)
From net realized gains 0.00 (1.30) (0.73) 0.00 (0.12) (0.09)
TOTAL DISTRIBUTIONS (0.15) (1.74) (1.20) (0.40) (0.56) (0.32)
NET ASSET VALUE, END OF
PERIOD $12.87 $13.50 $12.12 $11.83 $9.93 $10.19
TOTAL RETURN (NOT
ANNUALIZED) (3.64)% 27.10% 13.09% 23.54% 3.28% 5.14%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000) $487,297 $534,746 $431,585 $397,930 $293,696 $217,140
Number of shares out-
standing, end of pe-
riod (000) 37,873 39,601 35,613 33,634 29,585 21,303
RATIOS TO AVERAGE NET
ASSETS+:
Ratio of expenses to
average net
assets(/1/) 0.75% 0.75% 0.75% 0.75% 0.75% 0.79%
Ratio of net investment
income (loss) to
average net
assets(/2/) 2.11% 3.37% 3.95% 3.62% 4.62% 3.47%
Portfolio turnover -- -- -- -- 24%* 33%
- ---------------------------------------------------------------------------------------------
(1) Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses N/A N/A N/A N/A 0.76% 0.80%
(2) Ratio of net
investment income
(loss) to average
net assets prior to
waived fees and
reimbursed expenses N/A N/A N/A N/A 4.61% 3.46%
- ---------------------------------------------------------------------------------------------
</TABLE>
* This rate is for the period from March 1, 1994 to May 25, 1994. As of May
26, 1994 the Funds (except for the Money Market Fund) invest all of their
assets in the corresponding Master Portfolio. Portfolio turnover after May
26, 1994 is reported by the Master Portfolio.
+ Annualized for periods of less than one year. These ratios include expenses
charged to the corresponding Master Portfolio.
40
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Bond Index Fund
- ----------------------------------------------------------------------------------
Period From
July 2,
1993
For the Six (Commence-
Months ment of
Ended Operations)
August 31, Year Ended Year Ended Year Ended Year Ended to
1998 February 28, February 28, February 29, February 28, February 28,
(Unaudited) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$9.73 $9.43 $9.66 $9.20 $9.76 $10.00
0.31 0.64 0.63 0.64 0.64 0.38
0.20 0.30 (0.23) 0.46 (0.56) (0.24)
0.51 0.94 0.40 1.10 0.08 0.14
(0.31) (0.64) (0.63) (0.64) (0.64) (0.38)
0.00 0.00 0.00 0.00 0.00 0.00
(0.31) (0.64) (0.63) (0.64) (0.64) (0.38)
$9.93 $9.73 $9.43 $9.66 $9.20 $9.76
5.33% 10.36% 4.32% 12.17% 1.12% 1.38%
$102,113 $93,776 $129,469 $58,090 $18,593 $14,899
10,286 9,639 13,736 6,016 2,020 1,526
0.23% 0.23% 0.23% 0.23% 0.23% 0.31%
6.34% 6.66% 6.69% 6.67% 7.08% 5.88%
-- -- -- -- 14%* 20%
- -----------------------------------------------------------------------------------
N/A N/A 0.32% 0.53% 0.71% 0.32%
N/A N/A 6.60% 6.37% 6.61% 5.87%
- -----------------------------------------------------------------------------------
</TABLE>
41
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
Growth Stock Fund
---------------------------------------------------------------------
Period
From
July 2,
For the 1993
Six (Commence-
Months ment of
Ended Year Year Year Year Operations)
August Ended Ended Ended Ended to
31, 1998 February February February February February
(Unaudited) 28, 1998 28, 1997 29, 1996 28, 1995 28, 1994
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $15.74 $14.07 $14.78 $11.64 $11.52 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.00 (0.04) (0.06) (0.01) 0.00 (0.01)
Net realized and
unrealized gain (loss)
on investments (3.50) 2.96 (0.43) 4.82 0.19 1.86
TOTAL FROM INVESTMENT
OPERATIONS (3.50) 2.92 (0.49) 4.81 0.19 1.85
LESS DISTRIBUTIONS:
From net investment
income 0.00 0.00 0.00 (0.01) 0.00 0.00
From net realized gains 0.00 (1.25) (0.22) (1.66) (0.07) (0.33)
TOTAL DISTRIBUTIONS 0.00 (1.25) (0.22) (1.67) (0.07) (0.33)
NET ASSET VALUE, END OF
PERIOD $12.24 $15.74 $14.07 $14.78 $11.64 $11.52
TOTAL RETURN (NOT
ANNUALIZED) (22.24)% 21.61% (3.46)% 42.10% 1.70% 18.65%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000) $168,679 $237,014 $213,218 $178,584 $96,925 $45,443
Number of shares
outstanding, end of
period (000) 13,783 15,061 15,156 12,084 8,330 3,945
RATIOS TO AVERAGE NET
ASSETS+:
Ratio of expenses to
average net
assets(/1/) 0.77% 0.78% 0.76% 0.76% 0.76% 0.80%
Ratio of net investment
income (loss) to
average net
assets(/2/) (0.31)% (0.28)% (0.41)% (0.12)% (0.02)% (0.18)%
Portfolio turnover -- -- -- -- 27%* 104%
- -------------------------------------------------------------------------------------------------
(1) Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses 0.79% 0.80% 0.81% 0.86% 0.87% 0.80%
(2) Ratio of net
investment income
(loss) to average
net assets prior to
waived fees and
reimbursed expenses (0.33)% (0.30)% (0.46)% (0.22)% (0.12)% (0.18)%
- -------------------------------------------------------------------------------------------------
</TABLE>
* This rate is for the period from March 1, 1994 to May 25, 1994. As of May
26, 1994 the Funds (except for the Money Market Fund) invest all of their
assets in the corresponding Master Portfolio. Portfolio turnover after May
26, 1994 is reported by the Master Portfolio.
+ Annualized for periods of less than one year. These ratios include ex-
penses charged to the corresponding Master Portfolio.
42
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LifePath 2000 Fund LifePath 2010 Fund LifePath 2020 Fund
- ---------------------------------- ----------------------------------- -----------------------------------
Period Period Period
From From From
March 26, March 26, March 26,
For the 1996 For the 1996 For the 1996
Six (Commence- Six (Commence- Six (Commence-
Months ment of Months ment of Months ment of
Ended Year Operations) Ended Year Operations) Ended Year Operations)
August Ended to August Ended to August Ended to
31, 1998 February February 31, 1998 February February 31, 1998 February February
(Unaudited) 28, 1998 28, 1997 (Unaudited) 28, 1998 28, 1997 (Unaudited) 28, 1998 28, 1997
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$11.56 $10.97 $10.55 $13.90 $12.46 $11.44 $15.73 $13.40 $11.97
0.23 0.46 0.39 0.20 0.40 0.33 0.17 0.33 0.29
(0.19) 0.85 0.35 (0.54) 1.87 0.96 (1.00) 2.84 1.40
0.04 1.31 0.74 (0.34) 2.27 1.29 (0.83) 3.17 1.69
(0.22) (0.46) (0.32) (0.19) (0.40) (0.27) (0.17) (0.33) (0.24)
0.00 (0.26) 0.00 0.00 (0.43) 0.00 0.00 (0.51) (0.02)
(0.22) (0.72) (0.32) (0.19) (0.83) (0.27) (0.17) (0.84) (0.26)
$11.38 $11.56 $10.97 $13.37 $13.90 $12.46 $14.73 $15.73 $13.40
0.35% 12.32% 7.00% (2.51)% 18.73% 11.98% (5.35)% 24.25% 15.06%
$46,412 $48,731 $46,578 $113,105 $112,436 $87,204 $141,445 $148,197 $105,414
4,077 4,216 4,245 8,461 8,086 7,000 9,603 9,424 7,868
0.95% 0.95% 0.95% 0.95% 0.95% 0.95% 0.95% 0.95% 0.95%
3.82% 4.06% 4.21% 2.82% 3.09% 3.26% 2.10% 2.28% 2.57%
-- -- -- -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------
N/A N/A N/A N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -------------------------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2030 Fund LifePath 2040 Fund
----------------------------------- -----------------------------------
Period
Period From
From March
For the March 26, For the 26, 1996
Six 1996 Six (Commence-
Months (Commence- Months ment of
Ended Year ment of Ended Year Operations)
August Ended Operations) August Ended to
31, 1998 February to February 31, 1998 February February
(Unaudited) 28, 1998 28, 1997 (Unaudited) 28, 1998 28, 1997
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $17.39 $14.17 $12.39 $ 18.77 $15.21 $12.91
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.14 0.26 0.23 0.08 0.18 0.18
Net realized and
unrealized gain (loss)
on investments (1.39) 3.65 1.79 (1.88) 4.41 2.27
TOTAL FROM INVESTMENT
OPERATIONS (1.25) 3.91 2.02 (1.80) 4.59 2.45
LESS DISTRIBUTIONS:
From net investment
income (0.14) (0.26) (0.20) (0.08) (0.19) (0.15)
From net realized gains 0.00 (0.43) (0.04) 0.00 (0.84) 0.00
TOTAL DISTRIBUTIONS (0.14) (0.69) (0.24) (0.08) (1.03) (0.15)
NET ASSET VALUE, END OF
PERIOD $16.00 $17.39 $14.17 $ 16.89 $18.77 $15.21
TOTAL RETURN (NOT
ANNUALIZED) (7.31)% 28.22% 17.37% (9.64)% 30.95% 20.47%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000) $90,976 $95,309 $58,575 $125,521 $126,601 $69,476
Number of shares
outstanding, end of
period (000) 5,687 5,481 4,135 7,430 6,744 4,569
RATIOS TO AVERAGE NET
ASSETS+:
Ratio of expenses to
average net
assets(/1/) 0.95% 0.95% 0.95% 0.95% 0.95% 0.95%
Ratio of net investment
income to average net
assets(/2/) 1.55% 1.72% 2.05% 0.85% 1.04% 1.46%
Portfolio turnover -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------
(1) Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses N/A N/A N/A N/A N/A N/A
(2) Ratio of net
investment income to
average net assets
prior to waived fees
and reimbursed
expenses N/A N/A N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized for periods of less than one year. These ratios include
expenses charged to the Master Portfolio (except for the Money Market
Fund).
44
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Money Market Fund
- ---------------------------------------------------------------------------
Period
From
July 2,
For the 1993
Six (Commence-
Months ment of
Ended Year Year Year Year Operations)
August Ended Ended Ended Ended to
31, 1998 February February February February February
(Unaudited) 28, 1998 28, 1997 29, 1996 28, 1995 28, 1994
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00
0.03 0.05 0.05 0.05 0.04 0.02
0.00 0.00 0.00 0.00 0.00 0.00
0.03 0.05 0.05 0.05 0.04 0.02
(0.03) (0.05) (0.05) (0.05) (0.04) (0.02)
0.00 0.00 0.00 0.00 0.00 0.00
(0.03) (0.05) (0.05) (0.05) (0.04) (0.02)
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00
2.65% 5.35% 5.10% 5.60% 4.40% 1.81%
$171,107 $180,375 $177,046 $156,852 $147,269 $81,649
171,169 180,437 177,103 156,910 147,280 81,648
0.46% 0.45% 0.45% 0.45% 0.45% 0.49%
5.24% 5.23% 4.96% 5.44% 4.44% 2.77%
N/A N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------
N/A N/A 0.48% 0.49% 0.57% 0.50%
N/A N/A 4.93% 5.40% 4.32% 2.76%
- ----------------------------------------------------------------------------
</TABLE>
45
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
S&P 500 Stock Fund
----------------------------------------------------------------------
Period From
July 2,
1993
For the Six (Commence-
Months ment of
Ended Year Year Year Year Operations)
August Ended Ended Ended Ended to
31, 1998 February February February February February
(Unaudited) 28, 1998 28, 1997 29, 1996 28, 1995 28, 1994
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $22.08 $17.03 $14.02 $10.83 $10.50 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.18 0.33 0.32 0.31 0.27 0.16
Net realized and
unrealized gain (loss)
on investments (1.96) 5.46 3.23 3.36 0.41 0.47
TOTAL FROM INVESTMENT
OPERATIONS (1.78) 5.79 3.55 3.67 0.68 0.63
LESS DISTRIBUTIONS:
From net investment
income (0.17) (0.33) (0.32) (0.30) (0.27) (0.12)
From net realized gains 0.00 (0.41) (0.22) (0.18) (0.08) (0.01)
TOTAL DISTRIBUTIONS (0.17) (0.74) (0.54) (0.48) (0.35) (0.13)
NET ASSET VALUE, END OF
PERIOD $20.13 $22.08 $17.03 $14.02 $10.83 $10.50
TOTAL RETURN (NOT
ANNUALIZED) (8.16)% 34.62% 25.82% 34.35% 6.71% 6.30%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000) $2,001,258 $2,292,433 $1,423,024 $882,696 $448,776 $122,391
Number of shares out-
standing, end of pe-
riod (000) 99,409 103,804 83,551 62,951 41,427 11,653
RATIOS TO AVERAGE NET
ASSETS+:
Ratio of expenses to
average net
assets(/1/) 0.20% 0.20% 0.20% 0.20% 0.21% 0.27%
Ratio of net investment
income to average net
assets(/2/) 1.47% 1.73% 2.15% 2.52% 2.93% 2.46%
Portfolio turnover -- -- -- -- 8%* 4%
- -------------------------------------------------------------------------------------------------
(1) Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses N/A N/A 0.22% 0.26% 0.25% 0.28%
(2) Ratio of net
investment income to
average net assets
prior to waived fees
and reimbursed
expenses N/A N/A 2.13% 2.46% 2.88% 2.45%
- -------------------------------------------------------------------------------------------------
</TABLE>
* This rate is for the period from March 1, 1994 to May 25, 1994. As of May
26, 1994 the Funds (except for the Money Market Fund) invest all of their
assets in the corresponding Master Portfolio, and portfolio turnover is re-
ported by the Master Portfolio.
+ Annualized for periods of less than one year. These ratios include expenses
charged to the corresponding Master Portfolio.
46
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Short-Intermediate Term Fund
- ---------------------------------------------------------------------------
Period From
July 2, 1993
For the Six (Commence-
Months ment of
Ended Year Year Year Year Operations)
August Ended Ended Ended Ended to
31, 1998 February February February February February
(Unaudited) 28, 1998 28, 1997 29, 1996 28, 1995 28, 1994
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$9.35 $9.19 $9.40 $9.15 $9.72 $10.00
0.28 0.60 0.60 0.65 0.64 0.42
0.10 0.16 (0.21) 0.25 (0.57) (0.28)
0.38 0.76 0.39 0.90 0.07 0.14
(0.28) (0.60) (0.60) (0.65) (0.64) (0.42)
0.00 0.00 0.00 0.00 0.00 0.00
(0.28) (0.60) (0.60) (0.65) (0.64) (0.42)
$9.45 $9.35 $9.19 $9.40 $9.15 $9.72
4.09% 8.51% 4.29% 10.07% 0.89% 1.42%
$10,683 $10,829 $13,054 $13,704 $14,298 $5,258
1,130 1,159 1,420 1,458 1,562 541
0.63% 0.63% 0.65% 0.65% 0.65% 0.65%
5.88% 6.40% 6.48% 6.82% 7.07% 6.02%
-- -- -- -- 29% 277%
- ----------------------------------------------------------------------------
N/A N/A 1.29% 1.44% 1.41% 0.65%
N/A N/A 5.84% 6.03% 6.32% 6.02%
- ----------------------------------------------------------------------------
</TABLE>
47
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
U.S. Treasury Allocation Fund
------------------------------------------------------------------
Period From
July 2, 1993
For the Six (Commence-
Months ment of
Ended Year Year Year Year Operations)
August Ended Ended Ended Ended to
31, 1998 February February February February February
(Unaudited) 28, 1998 28, 1997 29, 1996 28, 1995 28, 1994
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING
OF PERIOD $9.40 $9.24 $9.35 $8.99 $9.67 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.24 0.55 0.56 0.51 0.59 0.39
Net realized and
unrealized gain (loss)
on investments 0.07 0.19 (0.11) 0.36 (0.68) (0.05)
TOTAL FROM INVESTMENT
OPERATIONS 0.31 0.74 0.45 0.87 (0.09) 0.34
LESS DISTRIBUTIONS:
From net investment
income (0.24) (0.55) (0.56) (0.51) (0.59) (0.39)
From net realized gains 0.00 (0.03) 0.00 0.00 0.00 (0.20)
In excess of net
realized gains 0.00 0.00 0.00 (0.08)
TOTAL DISTRIBUTIONS (0.24) (0.58) (0.56) (0.51) (0.59) (0.67)
NET ASSET VALUE, END OF
PERIOD $9.47 $9.40 $9.24 $9.35 $8.99 $9.67
TOTAL RETURN (NOT
ANNUALIZED) 3.39% 8.18% 4.99% 9.89% (0.76)% 3.33%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000) $45,482 $47,241 $47,542 $51,632 $56,852 $58,216
Number of shares
outstanding, end of
period (000) 4,803 5,026 5,147 5,522 6,324 6,019
RATIOS TO AVERAGE NET
ASSETS:+
Ratio of expenses to
average net
assets(/1/) 0.70% 0.70% 0.70% 0.70% 0.70% 0.78%
Ratio of net investment
income to average net
assets(/2/) 5.14% 5.89% 6.03% 5.47% 6.52% 5.79%
Portfolio turnover -- -- -- -- 43%* 210%
- ---------------------------------------------------------------------------------------------
(1) Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses N/A N/A 0.71% N/A 0.72% 0.80%
(2) Ratio of net
investment income to
average net assets
prior to waived fees
and reimbursed
expenses N/A N/A 6.02% N/A 6.50% 5.77%
- ---------------------------------------------------------------------------------------------
</TABLE>
* This rate is for the period from March 1, 1994 to May 25, 1994. As of May
26, 1994 the Funds (except for the Money Market Fund) invest all of their
assets in the corresponding Master Portfolio, and portfolio turnover is re-
ported by the Master Portfolio.
+ Annualized for periods of less than one year. These ratios include expenses
charged to the corresponding Master Portfolio.
48
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
MasterWorks Funds Inc. (the "Company"), is registered under the Investment
Company Act of 1940, as amended, as an open-end series investment company. The
Company commenced operations on July 2, 1993, and currently issues the
following Funds: the Asset Allocation, Bond Index, Growth Stock, LifePath 2000,
LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040, Money Market, S&P
500 Stock, Short-Intermediate Term and U.S. Treasury Allocation Funds (each, a
"Fund", collectively, the "Funds").
The following significant accounting policies are consistently followed by
the Company in the preparation of its financial statements, and such policies
are in conformity with generally accepted accounting principles for investment
companies. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
INVESTMENT POLICY AND SECURITY VALUATION
Each Fund, with the exception of the Growth Stock, Money Market and Short-
Intermediate Term Funds, invests all of its assets in a separate series (each a
"Master Portfolio") of Master Investment Portfolio. Each of the Growth Stock
and Short-Intermediate Term Funds invests all of its assets in a separate
series (also a "Master Portfolio") of Managed Series Investment Trust. Each
Master Portfolio has the same investment objective as the Fund bearing the
corresponding name. The value of each Fund's investment in its corresponding
Master Portfolio reflects that Fund's interest in the net assets of that Master
Portfolio (99.99%, 99.99%, 99.99%, 42.91%, 54.37%, 45.63%, 40.35%, 32.07%,
86.71%, 99.99% and 99.99% for the Asset Allocation, Bond Index, Growth Stock,
LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040, S&P
500 Stock, Short-Intermediate Term and U.S. Treasury Allocation Funds,
respectively, as of August 31, 1998). The Money Market Fund does not invest in
a corresponding Master Portfolio. Investments of each Master Portfolio are
valued at the last reported sale price on the primary securities exchange or
national securities market on which such securities are traded. Securities not
49
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
listed on an exchange or national securities market, or securities in which
there was no last reported sales price, are valued at the most recent bid
prices. Debt securities are generally traded in the over-the-counter market and
are valued at a price deemed best to reflect fair value as quoted by dealers
who make markets in those securities or by an independent pricing source. U.S.
Government obligations are valued at the last reported bid price. Debt
securities maturing in 60 days or less are valued at amortized cost, which
approximates market value. Any securities, restricted securities or other
assets for which market quotations are not readily available are valued at fair
value as determined in good faith in accordance with policies approved by the
Master Portfolios' Board of Trustees.
The Money Market Fund uses the amortized cost method to value its portfolio
securities and seeks to maintain a constant net asset value of $1.00 per share.
There is no assurance that the Fund will meet this objective. The amortized
cost method, which involves valuing a security at its cost and amortizing any
discount or premium over the period until maturity, approximates market value.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for by each Master Portfolio and the
Money Market Fund on the date the securities are purchased or sold (trade
date). Revenue is recognized by each Master Portfolio as follows: dividend
income is recognized on the ex-dividend date and interest income is recognized
on a daily accrual basis. The Money Market Fund recognizes interest income on a
daily accrual basis. Realized gains and losses are reported on the basis of
identified cost of securities delivered. Bond discounts and premiums are
amortized as required by the Internal Revenue Code of 1986, as amended (the
"Code"). All net investment income and realized and unrealized capital gains
and losses of each Master Portfolio are allocated as required by the Code.
The performance of each Fund, with the exception of the Money Market Fund, is
directly affected by the performance of its corresponding Master Portfolio. The
financial statements of each Master Portfolio, including the Portfolio of
Investments, are included elsewhere in this report and should be read in
conjunction with the corresponding Fund's financial statements.
50
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income of the Asset Allocation,
Bond Index, Short-Intermediate Term and U.S. Treasury Allocation Funds are
declared and distributed monthly. Dividends to shareholders from net investment
income of the Growth Stock, LifePath 2000, LifePath 2010, LifePath 2020,
LifePath 2030, LifePath 2040 and S&P 500 Stock Funds are declared and
distributed quarterly. Dividends to shareholders from net investment income of
the Money Market Fund are declared daily and distributed monthly. Distributions
to shareholders from any net realized capital gains are declared and
distributed annually, generally in December.
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may
differ from the year in which the income and realized gains (losses) were
recorded by the Fund.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions applicable to regulated investment
companies, as defined in the Code, and to distribute annually substantially all
of its investment company taxable income and any net capital gains (taking into
account capital loss carryforwards) sufficient to relieve it from all, or
substantially all, federal income and excise taxes. Accordingly, no provision
for federal taxes was required at February 28, 1998. The following Funds had
net capital loss carryforwards at December 31, 1997, the tax year end of the
funds:
<TABLE>
<CAPTION>
Year Net Capital
Fund Expires Loss Carryforward
- --------------------------------------------------------
<S> <C> <C>
Bond Index Fund 2002 $ 144,965
Bond Index Fund 2003 316,656
Bond Index Fund 2004 404,767
Bond Index Fund 2005 487,385
Money Market Fund 2003 57,505
Money Market Fund 2005 4,762
Short-Intermediate Term Fund 2002 247,724
Short-Intermediate Term Fund 2005 77,556
U.S. Treasury Allocation Fund 2002 4,475,313
</TABLE>
51
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
No capital gain distribution shall be made in any of the Funds until the
respective capital loss carryforward has been fully utilized or expires.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Contract with the Money Market Fund,
Barclays Global Fund Advisers ("BGFA") is entitled to receive a monthly fee at
an annual rate of 0.35% of the average daily net assets of the Fund as
compensation for its advisory services. BGFA is an indirect subsidiary of
Barclays Bank PLC.
Pursuant to a Sub-Advisory Contract with the Money Market Fund and BGFA,
Wells Fargo Bank, N.A. ("WFB") is responsible for the day-to-day portfolio
management of the Money Market Fund. WFB is entitled to receive from BGFA an
amount equal to 0.05% of the average daily net assets of the Money Market Fund
as compensation for its sub-advisory services.
Investors Bank & Trust Company ("IBT") serves as the Custodian and Sub-
Administrator of the Funds. IBT will not be entitled to receive fees for its
custodial services so long as it is entitled to receive a separate fee from BGI
for its services as Sub-Administrator of the Funds.
Stephens Inc. ("Stephens"), is the Funds' co-administrator and distributor.
The Company has entered into administration services arrangements with BGI
and Stephens, as co-administrators, who have agreed jointly to provide general
administration services to the Funds, such as managing and coordinating third-
party service relationships. This fee is an "all-in" or "semi-unified" fee and
BGI and Stephens, in consideration thereof, have agreed to bear all of the
Funds' ordinary operating expenses, excluding, generally, advisory fees and
costs related to securities transactions. BGI and Stephens may delegate certain
of their administration duties to sub-administrators.
52
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
Under these arrangements, BGI and Stephens are entitled to receive for these
administration services a combined fee (expressed as a percentage of average
daily net assets) from each Fund as follows:
<TABLE>
<S> <C>
Asset Allocation Fund 0.40%
Bond Index Fund 0.15%
Growth Stock Fund 0.18%
LifePath 2000 Fund 0.40%
LifePath 2010 Fund 0.40%
LifePath 2020 Fund 0.40%
LifePath 2030 Fund 0.40%
LifePath 2040 Fund 0.40%
Money Market Fund 0.10%
S&P 500 Stock Fund 0.15%
Short-Intermediate Term Fund 0.18%
U.S. Treasury Allocation Fund 0.40%
</TABLE>
The Company has entered into separate contracts on behalf of the Funds with
WFB, whereby WFB has agreed to provide transfer and dividend disbursing agency
services and shareholder services to the Funds. WFB is compensated for transfer
and dividend disbursing agency services at an annual rate of 0.03% of the
average daily net assets for the Bond Index, Growth Stock, S&P 500 Stock and
Short-Intermediate Term Funds, 0.10% of the average daily net assets of the
Asset Allocation, LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030,
LifePath 2040 and U.S. Treasury Allocation Funds and 0.05% of the average daily
net assets of the Money Market Fund. WFB is compensated for shareholder
servicing based on an annual rate of 0.20% for the Asset Allocation, LifePath
2000, LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040 and U.S.
Treasury Allocation Funds, 0.10% for the Growth Stock, Money Market and Short-
Intermediate Term Funds and 0.07% for the Bond Index and S&P 500 Stock Funds,
based on the average daily net assets of each of these Funds. Under the
administrative services arrangements, BGI and Stephens will compensate WFB for
expenses related to transfer and dividend disbursing agency services and
shareholder servicing.
Certain fees have been waived by BGI for the Growth Stock Fund for the six
months ended August 31, 1998. Waived fees continue at the discretion of BGI.
53
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
Certain officers and directors of the Company are also officers of Stephens.
As of August 31, 1998, Stephens owned less than 1% of the outstanding shares of
each Fund.
3. CAPITAL SHARES TRANSACTIONS
As of August 31, 1998, there were 12.1 billion shares of $.001 par value
capital stock authorized by the Company. As of August 31, 1998, each Fund,
except the Money Market, S&P 500 Stock, Short-Intermediate Term and U.S.
Treasury Allocation Funds, was authorized to issue 100 million shares of $.001
par value capital stock. The Money Market Fund was authorized to issue 3
billion shares. The S&P 500 Stock, Short-Intermediate Term and U.S. Treasury
Allocation Funds were each authorized to issue 300 million shares. Transactions
in capital shares for each Fund are disclosed in detail in the Statements of
Changes in Net Assets.
4. PORTFOLIO SECURITIES LOANED
As of August 31, 1998, certain Master Portfolios had loaned securities which
were collateralized by cash, money market mutual funds and repurchase
agreements. Each Master Portfolio receives transaction fees for providing
services in connection with the securities lending program. The value of the
securities on loan and the value of the related collateral are disclosed in the
corresponding Master Portfolio financial statements.
5. SUBSEQUENT EVENTS
On August 14, 1998, shareholders of the Money Market Fund approved the
conversion of the Fund to a Master-feeder structure. On or about September 1,
1998, the Fund will invest all of its assets in the Money Market Master
Portfolio of MIP. The Master Portfolio will be advised by BGI and will not
retain a subadvisor. The overall fees charged to the Fund will not increase as
a result of the conversion.
54
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS-72.08%
ADVERTISING-0.07%
Omnicom Group 7,684 $ 365,923
----------
TOTAL ADVERTISING
- VALUE $ 365,923
- COST $ 311,322
AEROSPACE & DEFENSE-1.06%
Allied Signal Inc 25,984 $ 891,576
Boeing Co 46,536 1,439,708
Briggs & Stratton Corp 1,115 41,046
General Dynamics Corp 5,849 278,193
Lockheed Martin Corp 8,977 784,926
Northrop Grumman Corp 3,145 199,314
Rockwell International Corp 9,015 326,794
Textron Inc 7,515 471,566
United Technologies Corp 10,554 765,825
----------
TOTAL AEROSPACE & DEFENSE
- VALUE $5,198,948
- COST $6,021,870
AIRLINES-0.35%
AMR Corp 8,435 $ 459,708
Delta Air Lines Inc 3,529 359,958
FDX Corp+ 6,775 339,173
Southwest Airlines Co 15,473 275,604
USAirways Group Inc+ 4,660 271,445
----------
TOTAL AIRLINES
- VALUE $1,705,888
- COST $1,619,487
APPAREL-0.19%
Fruit of the Loom Inc Class A+ 3,304 $ 74,134
Liz Claiborne Inc 3,060 87,210
Nike Inc Class B 13,247 459,505
Reebok International Ltd+ 2,699 43,690
Russell Corp 1,642 51,928
VF Corp 5,592 211,797
----------
TOTAL APPAREL
- VALUE $ 928,264
- COST $1,193,222
</TABLE>
55
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
AUTO PARTS & EQUIPMENT-0.51%
Cooper Tire & Rubber Co 3,686 $ 58,976
Dana Corp 7,566 296,484
Deluxe Corp 3,745 108,605
Eaton Corp 3,295 192,963
Genuine Parts Co 8,289 259,549
Goodyear Tire & Rubber Co 7,220 353,780
Illinois Tool Works Inc 11,506 557,322
ITT Industries Inc 5,464 164,603
Navistar International Corp+ 3,168 66,528
PACCAR Inc 3,596 147,436
The Pep Boys--Manny Moe & Jack 2,971 43,637
TRW Inc 5,663 242,801
------------
TOTAL AUTO PARTS & EQUIPMENT
- VALUE $ 2,492,684
- COST $ 2,748,253
AUTOMOBILES-1.14%
Chrysler Corp 29,744 $ 1,327,326
Ford Motor Co 55,811 2,455,684
General Motors Corp Class A 30,752 1,775,928
------------
TOTAL AUTOMOBILES
- VALUE $ 5,558,938
- COST $ 4,608,580
BANK & FINANCE-8.42%
Ahmanson (H F) & Co 5,036 $ 268,482
American Express Corp 21,232 1,656,096
Associates First Capital Corp 15,912 940,797
Banc One Corp 32,356 1,229,528
Bank of New York Inc 34,622 837,420
BankAmerica Corp 31,452 2,014,894
BankBoston Corp 13,539 483,173
Bankers Trust Corp 4,487 333,440
BB&T Corp 12,980 365,874
Bear Stearns Co Inc 5,273 194,771
Capital One Financial Corp 2,994 261,975
Chase Manhattan 39,263 2,080,939
Citicorp 20,752 2,243,810
Comerica Inc 7,241 378,342
Countrywide Credit Industries Inc 5,013 187,674
Equifax Inc 6,840 243,675
</TABLE>
56
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Federal Home Loan Mortgage Corp 31,205 $ 1,232,598
Federal National Mortgage Assoc 47,702 2,710,070
Fifth Third Bancorp 12,121 644,686
First Chicago NBD Corp 13,186 835,663
First Union Corp 44,640 2,165,040
Fleet Financial Group Inc 13,063 856,443
Franklin Resources Inc 11,696 377,196
Golden West Financial 2,634 200,513
Household International Inc 22,524 831,980
Huntington Bancshares Inc 9,774 222,359
Keycorp 20,265 516,758
Lehman Brothers Holdings 5,478 215,696
MBNA Corp 23,044 541,534
Mellon Bank Corp 11,949 621,348
Mercantile Bancorp 7,013 308,134
Merrill Lynch & Co Inc 15,907 1,049,862
MGIC Investment Corp 5,218 216,547
Morgan (J P) & Co Inc 8,211 763,623
Morgan Stanley Dean Witter 27,591 1,602,002
National City Corp 15,083 886,126
NationsBank Corp 44,060 2,511,420
Northern Trust Corp 5,175 288,506
Norwest Corp 34,829 1,036,163
PNC Bank Corp 13,859 595,937
Regions Financial Corp 7,942 274,992
Republic New York Corp 5,000 206,250
Ryder System Inc 3,395 79,995
Schwab (Charles) Corp 12,310 367,761
SLM Holding Corp 7,827 280,794
State Street Boston Corp 7,403 385,419
Summit Bancorp 8,160 278,460
SunTrust Banks Inc 9,740 545,440
Synovus Financial Corp 12,135 220,705
U.S. Bancorp 34,170 1,166,051
Wachovia Corp 9,484 695,296
Washington Mutual Inc 17,856 571,392
Wells Fargo & Co 3,934 1,108,896
------------
TOTAL BANK & FINANCE
- VALUE $ 41,132,545
- COST $ 40,975,503
</TABLE>
57
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
BASIC INDUSTRIES-0.91%
ASARCO Inc 1,896 $ 30,218
Avery-Dennison Corp 5,393 289,537
Baker Hughes Inc 14,590 266,268
Bemis Co 2,507 89,939
Boise Cascade Corp 2,633 64,344
Champion International Corp 4,389 144,837
Cyprus Amax Minerals 4,313 39,626
Dover Corp 10,245 279,176
Fort James Corp 10,121 294,774
Georgia-Pacific Corp 4,205 180,289
Harnischfeger Industries Inc 2,210 35,498
Homestake Mining Co 9,847 87,392
Ikon Office Solutions Inc 6,362 35,389
Inco Ltd 7,690 64,404
Louisiana-Pacific Corp 5,067 95,640
Mead Corp 4,806 131,564
Minnesota Mining & Manufacturing Co 18,591 1,273,484
NACCO Industries Inc Class A 421 40,100
Newmont Mining Corp 7,251 99,248
Potlatch Corp 1,339 44,020
Sealed Air Corp+ 3,823 137,628
Stone Container Corp+ 4,764 49,724
Union Camp Corp 3,116 115,487
Westvaco Corp 4,754 99,834
Weyerhauser Co 9,179 344,786
Willamette Industries Inc 5,133 126,400
------------
TOTAL BASIC INDUSTRIES
- VALUE $ 4,459,606
- COST $ 6,087,943
BEVERAGES-2.23%
Anheuser-Busch Inc 22,355 $ 1,031,124
Coca-Cola Co 113,689 7,403,996
Coors (Adolph) Co Class B 1,635 67,444
Pepsico Inc 68,607 1,899,556
Seagrams Co Ltd 15,927 491,746
------------
TOTAL BEVERAGES
- VALUE $ 10,893,866
- COST $ 10,584,192
</TABLE>
58
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
BROADCASTING-0.75%
Clear Channel Communications Inc 11,380 $ 512,100
Kingworld Productions 3,421 71,841
MediaOne Group Inc+ 28,052 1,150,132
Tele-Communications Inc Class A+ 23,325 769,725
Tribune Co 5,604 361,108
Viacom Inc Class B+ 16,457 816,679
------------
TOTAL BROADCASTING
- VALUE $ 3,681,585
- COST $ 2,662,203
BUILDING MATERIALS & SERVICES-0.30%
Cooper Industries Inc 5,520 $ 234,945
Corning Inc 10,742 264,522
Owens Corning Fiberglass Corp 2,440 85,553
Owens Illinois Inc+ 7,149 222,959
PPG Industries Inc 8,124 412,801
Snap-On Inc 2,699 70,849
Stanley Works 4,062 159,941
------------
TOTAL BUILDING MATERIALS & SERVICES
- VALUE $ 1,451,570
- COST $ 1,762,927
BUSINESS SERVICES-0.38%
Cendant Corp+ 39,250 $ 453,828
Dun & Bradstreet Corp 7,902 185,697
Ecolab Inc 5,909 164,344
Waste Management Inc+ 24,012 1,059,529
------------
TOTAL BUSINESS SERVICES
- VALUE $ 1,863,398
- COST $ 2,561,977
CHEMICALS-1.68%
Air Products & Chemicals Inc 10,776 $ 329,342
Clorox Co 4,737 456,824
Dow Chemical Co 10,337 806,286
Du Pont (E I) De Nemours 51,967 2,997,846
Eastman Chemical Co 3,674 189,441
FMC Corp+ 1,560 80,730
Goodrich (B F) Co 3,366 91,092
Grace (W R) Co+ 3,537 45,539
</TABLE>
59
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Great Lakes Chemical Corp 2,771 $ 108,415
Hercules Inc 4,425 113,114
International Flavor & Fragrances 4,934 191,193
Monsanto Co 27,554 1,506,859
Morton International Inc 5,995 133,389
Nalco Chemical Co 3,031 87,710
Praxair Inc 7,263 260,560
Rohm & Haas Co 2,790 240,812
Rubbermaid Inc 6,919 176,002
Sigma-Aldrich Corp 4,678 129,815
Union Carbide Corp 6,276 252,217
------------
TOTAL CHEMICALS
- VALUE $ 8,197,186
- COST $ 8,109,043
COMPUTER SOFTWARE-3.63%
3Com Corp+ 16,374 $ 387,859
Adobe Systems Inc 3,008 78,960
Autodesk Inc 2,188 51,145
Automatic Data Processing 13,863 883,766
Bay Networks Inc+ 10,247 307,410
Ceridian Corp+ 3,377 163,785
Computer Associates International Inc 25,139 678,753
Computer Sciences Corp 7,202 407,363
Electronic Data Systems Corp 22,606 757,301
First Data Corp 20,544 425,004
HBO & Co 19,735 419,369
IMS Health Inc 7,454 409,970
Microsoft Corp 113,477 10,886,700
Novell Inc+ 16,232 154,204
Oracle Systems Corp+ 44,795 893,100
Parametric Technology Corp 12,209 125,142
Sun Microsystems Inc+ 17,491 693,081
------------
TOTAL COMPUTER SOFTWARE
- VALUE $ 17,722,912
- COST $ 14,643,661
COMPUTER SYSTEMS-3.78%
Apple Computer Inc+ 6,171 $ 192,458
Cabletron Systems Inc+ 7,300 51,100
Cisco Systems Inc 47,071 3,853,938
</TABLE>
60
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Compaq Computer Corp 76,128 $ 2,126,826
Data General Corp+ 2,319 17,393
Dell Computer Corp 29,695 2,969,500
EMC Corp 22,877 1,033,754
Gateway 2000 Inc+ 7,149 338,237
Harris Corp 3,667 116,886
Hewlett-Packard Co 47,693 2,316,091
International Business Machine Corp 43,452 4,893,782
Seagate Technology Inc+ 11,213 196,228
Shared Medical System Corp 1,225 65,384
Silicon Graphics Inc+ 8,717 78,998
Unisys Corp+ 11,612 208,290
Unova Inc+ 67 1,068
------------
TOTAL COMPUTER SYSTEMS
- VALUE $ 18,459,933
- COST $ 14,094,494
CONTAINER & PACKAGING-0.24%
Ball Corp 1,403 $ 52,437
Crown Cork & Seal Co 5,744 188,116
International Paper Co 14,173 524,401
Temple-Inland Inc 2,624 117,588
Tenneco Inc 7,794 246,972
Tupperware Corp 2,940 55,493
------------
TOTAL CONTAINER & PACKAGING
- VALUE $ 1,185,007
- COST $ 1,561,668
ELECTRICAL EQUIPMENT-2.88%
Aeroquip-Vickers Inc 1,286 $ 51,842
General Electric Co 149,979 11,998,320
Grainger (W W) Inc 4,476 175,403
Masco Corp 15,622 359,306
Motorola Inc 27,557 1,186,673
National Service Industries Inc 1,919 71,483
Raychem Corp 3,893 112,897
Thomas & Betts Corp 2,555 87,030
------------
TOTAL ELECTRICAL EQUIPMENT
- VALUE $ 14,042,954
- COST $ 11,954,283
</TABLE>
61
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ELECTRONICS-2.74%
Advanced Micro Devices+ 6,633 $ 87,473
AMP Inc 10,087 359,980
Applied Materials Inc 16,906 415,254
CBS Corp 33,061 859,586
EG&G Inc 2,082 48,797
Emerson Electric Co 20,337 1,159,209
General Instrument Corp+ 6,899 137,118
General Signal Corp 2,051 75,374
Honeywell Inc 5,832 364,500
Intel Corp 78,111 5,560,527
Johnson Controls Inc 3,853 164,957
KLA Instruments Corp+ 3,988 84,745
LSI Logic Corp+ 6,548 80,213
Micron Technology Inc+ 9,769 222,245
National Semiconductor+ 7,556 68,949
Perkin-Elmer Corp 2,306 133,460
Pitney Bowes Inc 12,579 624,233
Raytheon Co Class B 15,645 713,803
Tektronix Inc 2,339 35,524
Texas Instruments Inc 18,020 859,329
Xerox Corp 15,149 1,330,272
------------
TOTAL ELECTRONICS
- VALUE $ 13,385,548
- COST $ 12,924,460
ENERGY & RELATED-5.48%
Amerada Hess Corp 4,186 $ 205,637
Amoco Corp 44,135 1,999,867
Anadarko Petroleum Corp 5,523 158,786
Apache Corp 4,546 103,990
Ashland Inc 3,471 158,147
Atlantic Richfield Corp 14,727 854,166
Burlington Resources Inc 8,165 241,378
Chevron Corp 30,112 2,230,170
Coastal Corp 9,786 254,436
Columbia Gas System Inc 3,782 188,130
Consolidated Natural Gas Co 4,390 192,337
Dresser Industries Inc 8,101 207,082
Eastern Enterprises 914 36,160
Enron Corp 15,155 641,246
</TABLE>
62
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Exxon Corp 112,667 $ 7,372,647
Halliburton Co 12,072 320,663
Helmerich & Payne Inc 2,334 37,928
Kerr-McGee Corp 2,165 83,623
Mobil Corp 35,971 2,486,495
NICOR Inc 2,213 85,892
Occidental Petroleum Corp 16,957 313,705
ONEOK Inc 1,476 44,372
Oryx Energy Co+ 4,922 61,217
Pennzoil Co 2,220 79,365
Peoples Energy Corp 1,603 53,099
Phillips Petroleum Co 12,068 492,525
Rowan Co Inc+ 4,136 38,258
Royal Dutch Petroleum Corp 98,678 3,922,451
Schlumberger Ltd 22,983 1,006,943
Sonat Offshore Drilling Co 5,028 136,070
Sun Co Inc 4,271 141,210
Texaco Inc 24,890 1,382,951
Union Pacific Resources Group 11,533 98,751
Unocal Corp 11,160 349,448
USX-Marathon Group 13,297 345,722
Williams Co Inc 19,574 450,202
------------
TOTAL ENERGY & RELATED
- VALUE $ 26,775,069
- COST $ 27,691,295
ENGINEERING & CONSTRUCTION-0.11%
Armstrong World Industries Inc 1,857 $ 89,136
Centex Corp 2,728 96,503
Fleetwood Enterprises Inc 1,702 56,911
Fluor Corp 3,759 148,715
Foster Wheeler Corp 1,925 23,702
Kaufman & Broad Home Corp 1,814 38,774
Pulte Corp 1,920 55,440
------------
TOTAL ENGINEERING & CONSTRUCTION
- VALUE $ 509,181
- COST $ 580,991
ENTERTAINMENT & LEISURE-1.17%
Brunswick Corp 4,574 $ 68,324
Disney (Walt) Co 94,215 2,585,024
</TABLE>
63
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Harrah's Entertainment Inc+ 4,737 $ 68,390
Hasbro Inc 6,080 190,380
Mattel Inc 13,538 438,293
Mirage Resorts Inc+ 8,331 123,924
Polaroid Corp 2,027 57,009
Time Warner Inc 27,176 2,184,271
------------
TOTAL ENTERTAINMENT & LEISURE
- VALUE $ 5,715,615
- COST $ 5,255,005
ENVIRONMENTAL CONTROL-0.06%
Browning-Ferris Industries Inc 8,496 $ 276,120
------------
TOTAL ENVIRONMENTAL CONTROL
- VALUE $ 276,120
- COST $ 286,515
FOOD & RELATED-2.93%
Albertson's Inc 11,328 $ 572,772
American Stores Co 12,606 365,574
Archer-Daniels-Midland Co 27,577 413,651
Bestfoods 13,254 665,185
Brown-Forman Corp Class B 3,209 192,540
Campbell Soup Co 20,892 1,052,435
ConAgra Inc 22,100 546,975
Darden Restaurants Inc 6,677 103,494
General Mills Inc 7,333 479,853
Great Atlantic & Pacific Tea Co 1,757 41,839
Heinz (H J) Co 16,887 900,288
Hershey Foods Corp 6,599 461,930
Kellogg Co 18,841 574,651
Kroger Co+ 11,778 530,010
McDonald's Corp 31,643 1,773,986
Pioneer Hi Bred International Inc 11,245 379,519
Quaker Oats Co 6,342 336,919
Ralston-Purina Group 14,559 383,084
Sara Lee Corp 21,467 971,382
Super Value Inc 5,516 112,044
Sysco Corp 15,542 313,754
Tricon Global Restaurants+ 7,055 261,476
Unilever NV (Netherlands) 29,424 1,864,746
UST Inc 8,569 223,865
</TABLE>
64
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Wendy's International Inc 6,120 $ 122,783
Winn-Dixie Stores Inc 6,889 256,615
Wrigley (W M) Jr Co 5,330 413,075
------------
TOTAL FOOD & RELATED
- VALUE $ 14,314,445
- COST $ 13,120,093
FURNITURE & APPLIANCES-0.07%
Maytag Corp 4,275 $ 184,359
Whirlpool Corp 3,510 174,184
------------
TOTAL FURNITURE & APPLIANCES
- VALUE $ 358,543
- COST $ 323,106
HEALTHCARE-0.27%
Cardinal Health Inc 6,172 $ 540,050
Healthsouth Corp+ 18,652 353,222
St Jude Medical Inc+ 3,873 85,448
United Healthcare Corp 8,913 321,982
------------
TOTAL HEALTHCARE
- VALUE $ 1,300,702
- COST $ 1,535,593
HOSPITAL & MEDICAL SUPPLIES-1.87%
Bard (C R) Inc 2,641 $ 86,493
Bausch & Lomb Inc 2,522 106,712
Baxter International Inc 12,938 688,949
Becton Dickinson & Co 11,354 378,230
Biomet Inc 5,191 139,508
Boston Scientific Corp+ 8,925 618,056
Columbia/HCA Healthcare Corp 29,651 669,001
Guidant Corp 6,905 426,384
Johnson & Johnson 61,896 4,270,824
Mallinckrodt Group Inc 3,355 76,746
Manor Care Inc 2,902 69,648
Medtronic Inc 21,628 1,111,139
Tenet Healthcare Corp+ 14,168 365,712
United States Surgical 3,483 139,102
------------
TOTAL HOSPITAL & MEDICAL SUPPLIES
- VALUE $ 9,146,504
- COST $ 8,281,540
</TABLE>
65
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HOUSEHOLD PRODUCTS-1.89%
Alberto-Culver Co Class B 2,644 $ 52,880
Avon Products Inc 6,110 384,166
Colgate-Palmolive Co 13,679 986,598
Gillette Co 51,753 2,128,342
Kimberly-Clark Corp 25,623 976,877
Procter & Gamble Co 61,730 4,722,345
------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 9,251,208
- COST $ 8,844,787
INSURANCE-3.47%
Aetna Inc 6,710 $ 403,858
Allstate Corp 38,618 1,448,175
American General Corp 11,667 749,605
American International Group Inc 48,299 3,734,078
Aon Corp 7,806 488,363
Chubb Corp 7,774 485,875
CIGNA Corp 9,878 574,776
Cincinnati Financial Corp 7,720 259,585
Conseco Inc 14,043 387,938
General Re Corp 3,560 738,700
Hartford Financial Services Group 10,859 485,940
Humana Inc+ 7,727 100,451
Jefferson-Pilot Corp 4,850 275,238
Lincoln National Corp 4,670 401,620
Loews Corp 5,260 443,813
Marsh & McLennan Companies Inc 11,831 573,804
MBIA Inc 4,541 254,864
Progressive Corp Ohio 3,297 321,251
Provident Co Inc 5,736 206,496
Providian Financial Corp 4,366 280,243
SAFECO Corp 6,491 263,697
St Paul Co 10,769 329,128
Sunamerica Inc 9,036 559,667
Torchmark Corp 6,505 232,554
Transamerica Corp 2,930 300,508
Travelers Inc 52,966 2,350,366
UNUM Corp 6,390 281,160
------------
TOTAL INSURANCE
- VALUE $ 16,931,753
- COST $ 15,792,064
</TABLE>
66
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
LODGING-0.12%
Hilton Hotels Corp 11,430 $ 237,173
Marriott International 11,782 330,632
------------
TOTAL LODGING
- VALUE $ 567,805
- COST $ 624,359
MACHINERY-0.45%
Black & Decker Corp 4,322 $ 179,903
Case Corp 3,415 92,205
Caterpillar Inc 16,878 712,041
Cincinnati Milacron Inc 1,868 36,193
Cummins Engine Co Inc 1,736 70,634
Deere & Co 11,464 377,596
Ingersoll-Rand Co 7,651 304,127
McDermott International Inc 2,723 54,630
Pall Corp 5,737 117,609
Parker Hannifin Corp 5,110 148,190
Thermo Electron Corp+ 7,224 117,390
TOTAL MACHINERY
- VALUE $ 2,210,518
- COST $ 2,780,761
MANUFACTURING-0.31%
Tyco International Ltd 26,839 $ 1,489,565
------------
TOTAL MANUFACTURING
- VALUE $ 1,489,565
- COST $ 1,150,349
METAL FABRICATORS-0.45%
Alcan Aluminum Ltd 10,492 $ 199,348
Allegheny Teledyne Inc 9,101 137,084
Aluminum Co of America 8,614 515,763
Armco Inc+ 5,113 21,091
Barrick Gold Corp 17,255 224,315
Battle Mountain Gold Co 10,618 32,518
Bethlehem Steel Corp+ 5,457 39,222
Crane Co 2,100 84,525
Engelhard Corp 6,709 123,278
Freeport McMoRan Inc 8,475 98,522
Nucor Corp 4,033 144,936
Phelps Dodge Corp 2,717 121,586
</TABLE>
67
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Placer Dome Inc 11,580 $ 93,364
Reynolds Metals Co 3,334 159,824
Timken Co 2,897 52,689
USX-U.S. Steel Group 4,037 84,525
Worthington Industries Inc 4,463 58,019
------------
TOTAL METAL FABRICATORS
- VALUE $ 2,190,609
- COST $ 3,227,318
PHARMACEUTICALS-6.75%
Abbott Laboratories 71,045 $ 2,735,233
Allergan Inc 3,002 141,845
ALZA Corp 3,977 143,172
American Home Products Corp 60,410 3,028,051
Amgen Inc+ 11,734 714,307
Bristol-Myers Squibb Co 45,836 4,486,199
Lilly (Eli) & Co 50,953 3,337,422
Merck & Co Inc 55,070 6,384,678
Millipore Corp 2,057 44,611
Pfizer Inc 60,125 5,591,625
Pharmacia and Upjohn Inc 23,349 970,443
Schering-Plough Corp 33,797 2,906,542
Warner Lambert Co 37,748 2,463,057
------------
TOTAL PHARMACEUTICALS
- VALUE $ 32,947,185
- COST $ 24,546,710
PUBLISHING-0.71%
American Greetings Corp Class A 3,361 $ 126,825
Comcast Corp Class A 17,027 636,384
Donnelley (R R) & Sons Co 6,515 236,169
Dow Jones & Co Inc 4,336 215,987
Gannett Co Inc 13,086 772,074
Interpublic Group Co Inc 6,242 355,794
Knight-Ridder Inc 3,622 172,498
McGraw-Hill Inc 4,589 349,911
Meredith Corp 2,399 80,516
Moore Corp Ltd 4,122 39,417
</TABLE>
68
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
New York Times Co Class A 8,846 $ 256,534
Times Mirror Co Class A 4,115 235,327
------------
TOTAL PUBLISHING
- VALUE $ 3,477,436
- COST $ 2,917,572
RETAIL & RELATED-4.23%
AutoZone Inc+ 7,016 $ 181,978
Circuit City Stores Inc 4,580 141,408
Consolidated Stores Corp+ 4,947 155,831
Costco Co Inc+ 9,948 468,178
CVS Corp 17,681 643,146
Dayton-Hudson Corp 20,096 723,456
Dillards Inc Class A 4,988 144,029
Dollar General Corp 6,596 177,268
Eastman Kodak Co 14,907 1,164,609
Federated Department Stores Inc+ 9,673 421,380
Fred Myer Inc 7,005 275,384
Gap Inc 18,134 925,967
Harcourt General Inc 3,223 156,517
Home Depot Inc 67,645 2,604,333
Jostens Inc 1,691 33,609
K Mart Corp+ 22,515 287,066
Kohls Corp 7,299 331,648
Limited Inc 10,468 218,520
Longs Drug Stores Corp 1,793 61,186
Lowe's Co Inc 16,060 563,104
May Department Stores Co 10,605 596,531
Newell Co 7,347 350,819
Nordstrom Inc 7,042 210,820
Penney (J C) Co Inc 11,518 570,861
Rite Aid Corp 11,885 430,088
Sears Roebuck & Co 18,021 818,829
Sherwin Williams Co 8,007 191,167
Tandy Corp 4,663 254,425
TJX Companies Inc 14,680 327,548
Toys R Us Inc+ 12,842 238,380
Venator Group Inc+ 6,313 57,212
</TABLE>
69
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Walgreen Co 22,834 $ 879,109
WalMart Stores Inc 103,414 6,075,573
------------
TOTAL RETAIL & RELATED
- VALUE $ 20,679,979
- COST $ 16,082,992
SERVICES-0.20%
Block (H R) Inc 4,822 $ 188,661
Public Service Enterprise Group 10,663 390,532
Service Corp International 11,754 398,167
------------
TOTAL SERVICES
- VALUE $ 977,360
- COST $ 856,466
TELECOMMUNICATIONS-6.79%
Airtouch Communications+ 26,317 $ 1,480,331
Alltel Corp 12,606 568,846
Ameritech Corp 50,673 2,387,965
Andrew Corp+ 4,074 60,346
Ascend Communications Inc+ 8,922 312,270
AT & T Corp 83,382 4,179,523
Bell Atlantic Corp 71,479 3,154,011
BellSouth Corp 45,563 3,123,913
Frontier Corp 7,784 236,439
GTE Corp 44,289 2,214,450
Lucent Technologies Inc 60,389 4,280,070
MCI Communications Corp 33,399 1,669,950
NEXTEL Communications Class A+ 12,454 224,950
Northern Telecom Ltd 23,965 1,144,329
SBC Communication Inc 84,669 3,217,422
Scientific-Atlanta Inc 3,673 64,966
Sprint Corp 19,777 1,326,295
Tellabs Inc+ 8,425 355,956
U.S. West Inc 23,053 1,198,756
WorldCom Inc+ 47,555 1,946,783
------------
TOTAL TELECOMMUNICATIONS
- VALUE $ 33,147,571
- COST $ 26,893,561
</TABLE>
70
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TEXTILES-0.01%
Springs Industries Inc Class A 921 $ 30,451
------------
TOTAL TEXTILES
- VALUE $ 30,451
- COST $ 44,184
TOBACCO-1.00%
Fortune Brands Inc 7,933 $ 218,653
Philip Morris Co Inc 111,816 4,647,353
------------
TOTAL TOBACCO
- VALUE $ 4,866,006
- COST $ 4,602,576
TRANSPORTATION-0.44%
Burlington Northern Santa Fe 7,207 $ 670,701
CSX Corp 10,057 379,652
Laidlaw Inc Class B 15,316 132,101
Norfolk Southern Corp 17,409 490,716
Union Pacific Corp 11,438 455,375
------------
TOTAL TRANSPORTATION
- VALUE $ 2,128,545
- COST $ 2,602,153
UTILITIES-2.04%
Ameren Corp 6,282 $ 248,532
American Electric Power Inc 8,723 394,716
Baltimore Gas & Electric Co 6,860 211,374
Carolina Power & Light Co 6,952 299,371
Central & South West Corp 9,814 256,391
Cinergy Corp 7,315 254,196
Consolidated Edison Inc 10,872 514,382
Dominion Resources Inc 9,010 375,604
DTE Energy Co 6,659 280,510
Duke Power Co 16,610 1,036,049
Edison International 16,710 475,191
Entergy Corp 11,370 327,598
FirstEnergy Corp 10,617 306,566
FPL Group Inc 8,335 554,798
GPU Inc 5,931 222,783
Houston Industries Inc 13,455 387,672
Niagara Mohawk Power Corp+ 8,680 134,540
Northern States Power Co 6,966 184,599
</TABLE>
71
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Pacificorp 13,767 $ 310,618
PECO Energy Co 10,270 351,748
PG & E Corp 17,542 563,537
PP & L Resources Inc 7,705 181,549
Sempra Energy+ 11,035 280,704
Southern Co 32,149 904,191
Texas Utilities Co 12,916 548,930
Unicom Corp 10,036 357,533
------------
TOTAL UTILITIES
- VALUE $ 9,963,682
- COST $ 8,580,920
TOTAL COMMON STOCKS
- VALUE $351,982,607
- COST $321,045,998
</TABLE>
72
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY INTEREST MATURITY PRINCIPAL/
NAME RATE DATE SHARES VALUE
<S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES-22.32%
U.S. TREASURY BONDS-22.32%
U.S. Treasury Bonds 9.00% 11/15/18 $1,100,000 $ 1,574,719
U.S. Treasury Bonds 8.88 02/15/19 6,550,000 9,290,769
U.S. Treasury Bonds 8.75 05/15/20 2,350,000 3,324,517
U.S. Treasury Bonds 8.75 08/15/20 5,775,000 8,184,261
U.S. Treasury Bonds 8.50 02/15/20 1,300,000 1,796,032
U.S. Treasury Bonds 8.13 08/15/19 5,650,000 7,516,268
U.S. Treasury Bonds 8.13 05/15/21 3,300,000 4,431,283
U.S. Treasury Bonds 8.13 08/15/21 3,250,000 4,371,250
U.S. Treasury Bonds 8.00 11/15/21 7,950,000 10,580,957
U.S. Treasury Bonds 7.88 02/15/21 3,300,000 4,319,908
U.S. Treasury Bonds 7.63 11/15/22 2,175,000 2,801,672
U.S. Treasury Bonds 7.63 02/15/25 3,000,000 3,908,439
U.S. Treasury Bonds 7.50 11/15/24 3,200,000 4,109,002
U.S. Treasury Bonds 7.25 08/15/22 2,200,000 2,721,125
U.S. Treasury Bonds 7.13 02/15/23 3,720,000 4,551,189
U.S. Treasury Bonds 6.88 08/15/25 2,200,000 2,640,689
U.S. Treasury Bonds 6.75 08/15/26 2,950,000 3,501,281
U.S. Treasury Bonds 6.63 02/15/27 2,450,000 2,871,861
U.S. Treasury Bonds 6.50 11/15/26 3,300,000 3,802,220
U.S. Treasury Bonds 6.38 08/15/27 3,100,000 3,530,125
U.S. Treasury Bonds 6.25 08/15/23 6,825,000 7,560,824
U.S. Treasury Bonds 6.13 11/15/27 5,900,000 6,541,625
U.S. Treasury Bonds 6.00 02/15/26 2,775,000 2,998,734
U.S. Treasury Bonds 5.50 08/15/28 2,000,000 2,060,000
------------
108,988,750
TOTAL U.S. TREASURY SECURITIES
- VALUE $108,988,750
- COST $ 95,851,172
SHORT TERM INSTRUMENTS-16.28%
CASH EQUIVALENTS-6.10%
Dreyfus Institutional Money Market
Fund++ 92,916 $ 1,092,916
Janus Institutional Money Market
Fund++ 4,700,000 4,700,000
Merrimac Cash Fund--Premium Class++ 25,000,000 24,000,000
------------
29,792,916
</TABLE>
73
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY INTEREST MATURITY PRINCIPAL/
NAME RATE DATE SHARES VALUE
<S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS (CONTINUED)
REPURCHASE AGREEMENTS-4.71%
Goldman Sachs Repurchase
Agreements, dated 8/31/98, due
9/02/98, with a maturity value
of $23,011,098 and an
effective yield of 5.79%,
collateralized by a Federal
Home Loan Mortgage Corporation
obligation and a Federal
National Mortgage Association
obligation with rates ranging
from 6.60% to 8.00%, with
maturity dates ranging from
3/01/28 to 6/01/36 and with an
aggregate market value of
$23,460,000.++ $23,000,000 $ 23,000,000
U.S. TREASURY BILLS-5.47%
U.S. Treasury Bills 4.90%* 11/12/98 $ 161,000 $ 159,451
U.S. Treasury Bills 4.86%* 10/15/98 7,588,000 7,543,299
U.S. Treasury Bills 4.80%* 10/22/98 19,167,000 19,037,757
------------
$ 26,740,507
------------
TOTAL SHORT-TERM INSTRUMENTS
- VALUE $ 79,533,423
- COST $ 79,530,896
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $496,428,066)** (Notes 1 and 3) 110.68% $540,504,780
Other Assets and Liabilities, Net (10.68)% (52,164,257)
------- ------------
TOTAL NET ASSETS 100.00% $488,340,523
======= ============
</TABLE>
- --------------------------------------------------------------------------------
+ Non-income earning securities.
++ Represents investment of collateral received from securities lending trans-
actions. See Note 4.
* Yield to maturity.
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized
Appreciation $ 64,939,577
Gross Unrealized
Depreciation (20,862,863)
------------
NET UNREALIZED
APPRECIATION $ 44,076,714
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
74
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--AUGUST 31,1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES-29.31%
AEROSPACE & DEFENSE-1.00%
$1,000,000 Lockheed Martin Corp 6.85% 05/15/01 $ 1,027,987
AUTO PARTS & EQUIPMENT-1.01%
$1,000,000 Goodyear Tire & Rubber Co 6.63% 12/01/06 $ 1,036,490
AUTOMOBILES-0.57%
$ 500,000 Ford Motor Co 8.88% 04/01/06 $ 584,547
BANK & FINANCE-14.16%
$ 500,000 ABN Amro Bank NV 7.30% 12/01/26 $ 514,232
500,000 African Development Bank 7.75 12/15/01 531,003
1,000,000 American General Finance 5.88 07/01/00 1,002,621
1,000,000 Bank Of New York Co 6.50 12/01/03 1,033,360
1,000,000 Bankamerica Corp 6.25 04/01/08 1,003,100
1,000,000 CIT Group Holdings 6.63 06/15/05 1,035,300
1,000,000 Commercial Credit Corp 8.70 06/15/10 1,207,625
1,000,000 Dresdner Bank AG 6.63 09/15/05 1,025,382
1,285,000 Financing Corp 9.80 04/06/18 1,885,011
500,000 First Union Corp 6.63 07/15/05 516,828
1,000,000 General Motors Acceptance Corp 7.12 05/01/03 1,050,951
1,000,000 Household Finance Corp 6.70 06/15/02 1,028,710
1,000,000 KFW International Finance 7.63 02/15/04 1,092,964
500,000 Lehman Brothers Inc 9.88 10/15/00 540,807
1,000,000 Mellon Capital II 7.99 01/15/27 1,060,132
------------
$ 14,528,026
BEVERAGES-1.14%
$1,000,000 Coca-Cola Enterprises 8.00% 09/15/22 $ 1,166,534
CHEMICALS-1.57%
$1,000,000 American Home Product 6.50% 10/15/02 $ 1,034,180
500,000 Dow Chemical Co 8.62 04/01/06 576,024
------------
$ 1,610,204
ELECTRONICS-1.02%
$1,000,000 Raytheon Co 7.38% 07/15/25 $ 1,042,434
ENERGY & RELATED-1.04%
$1,000,000 Phillips 66 Capital Trust II 8.00% 01/15/37 $ 1,066,552
ENTERTAINMENT & LEISURE-0.51%
$ 500,000 Disney (Walt) Co 6.75% 03/30/06 $ 526,324
FOOD & RELATED-1.08%
$ 500,000 Archer-Daniels-Midland Co 8.38% 04/15/17 $ 602,936
500,000 McDonald's Corp 6.75 02/15/03 507,687
------------
$ 1,110,623
</TABLE>
75
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES (CONTINUED)
HEALTHCARE-1.04%
$1,000,000 Baxter International Inc 7.63% 11/15/02 $ 1,069,758
INSURANCE-1.01%
$1,000,000 Aetna Services Inc 7.12% 08/15/06 $ 1,039,043
INVESTMENT BANKING & BROKERAGE-0.98%
$1,000,000 Salomon Inc 6.50% 03/01/00 $ 1,008,885
PHARMACEUTICALS-0.50%
$500,000 American Home Products 7.70% 02/15/00 $ 514,978
RETAIL & RELATED-1.09%
$1,000,000 Walmart 7.25% 06/01/13 $ 1,119,277
TRANSPORTATION-1.07%
$1,000,000 Norfolk Southern Corp 7.80% 05/15/27 $ 1,093,363
UTILITIES-0.52%
$500,000 Virginia Electric & Power Co 7.38% 07/01/02 $ 529,201
TOTAL CORPORATE BONDS & NOTES $ 30,074,226
(Cost $28,799,505)
FOREIGN GOVERNMENT BONDS & NOTES++-2.31%
$1,000,000 British Columbia (Province Of) 6.50% 01/15/26 $ 1,010,150
750,000 Ontario (Province Of) 7.63 06/22/04 820,470
500,000 Victoria (Province Of) 8.45 10/01/01 539,741
------------
TOTAL FOREIGN GOVERNMENT BONDS & NOTES $ 2,370,361
(Cost $2,182,398)
U.S. GOVERNMENT AGENCY SECURITIES-8.99%
FEDERAL AGENCY-OTHER-1.50%
$1,000,000 Tennessee Valley Authority 8.38% 10/01/99 $ 1,028,914
500,000 Tennessee Valley Authority 6.13 07/15/03 507,542
------------
$ 1,536,456
FEDERAL HOME LOAN MORTGAGE CORPORATION-0.70%
$ 700,000 Federal Home Loan Mortgage Corp 7.22% 05/17/05 $ 720,086
FEDERAL NATIONAL MORTGAGE ASSOCIATION-6.30%
$ 500,000 Federal National Mortgage Assoc 7.55% 04/22/02 $ 536,140
1,000,000 Federal National Mortgage Assoc 6.77 01/19/06 997,474
500,000 Federal National Mortgage Assoc 6.70 08/10/01 505,977
1,000,000 Federal National Mortgage Assoc 5.97 09/09/03 993,552
1,000,000 Federal National Mortgage Assoc 5.91 02/25/00 1,009,331
2,000,000 Federal National Mortgage Assoc 5.75 02/15/08 2,019,654
1,000,000 Federal National Mortgage Assoc 0.00 07/05/14 406,095
------------
$ 6,468,223
</TABLE>
76
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES (CONTINUED)
STUDENT LOAN MARKETING ASSOCIATION-0.49%
$ 500,000 Student Loan Marketing Assoc 5.88% 02/06/01 $ 499,855
TOTAL U.S. GOVERNMENT AGENCY SECURITIES $ 9,224,620
(Cost $9,023,658)
U.S. TREASURY SECURITIES-55.80%
U.S. TREASURY BONDS-17.30%
$1,100,000 U.S. Treasury Bonds 12.00% 08/15/13 $ 1,665,813
1,150,000 U.S. Treasury Bonds 11.25 02/15/15 1,893,188
500,000 U.S. Treasury Bonds 9.13 05/15/09 593,750
700,000 U.S. Treasury Bonds 9.13 05/15/18 1,009,094
2,450,000 U.S. Treasury Bonds 8.13 08/15/19 3,259,267
1,700,000 U.S. Treasury Bonds 7.88 02/15/21 2,225,407
1,400,000 U.S. Treasury Bonds 7.63 02/15/25 1,823,938
500,000 U.S. Treasury Bonds 7.50 11/15/16 618,282
500,000 U.S. Treasury Bonds 7.25 05/15/16 603,438
1,000,000 U.S. Treasury Bonds 7.12 02/15/23 1,223,438
1,500,000 U.S. Treasury Bonds 6.50 11/15/26 1,728,282
1,000,000 U.S. Treasury Bonds 6.13 11/15/27 1,108,750
------------
$ 17,752,647
U.S. TREASURY NOTES-38.50%
$2,300,000 U.S. Treasury Notes 7.88% 08/15/01 $ 2,478,970
2,700,000 U.S. Treasury Notes 7.50 11/15/01 2,896,595
1,300,000 U.S. Treasury Notes 7.50 02/15/05 1,470,625
700,000 U.S. Treasury Notes 7.25 08/15/04 777,875
400,000 U.S. Treasury Notes 7.12 09/30/99 408,125
1,000,000 U.S. Treasury Notes 7.12 02/29/00 1,029,063
1,500,000 U.S. Treasury Notes 7.00 07/15/06 1,680,000
2,250,000 U.S. Treasury Notes 6.50 05/31/01 2,335,781
400,000 U.S. Treasury Notes 6.50 05/15/05 432,250
700,000 U.S. Treasury Notes 6.50 10/15/06 763,000
1,000,000 U.S. Treasury Notes 6.38 01/15/00 1,016,875
1,000,000 U.S. Treasury Notes 6.38 08/15/02 1,047,500
1,800,000 U.S. Treasury Notes 6.25 05/31/00 1,837,125
1,000,000 U.S. Treasury Notes 6.25 01/31/02 1,037,500
700,000 U.S. Treasury Notes 6.25 02/15/03 733,907
1,200,000 U.S. Treasury Notes 6.13 12/31/01 1,239,376
1,000,000 U.S. Treasury Notes 6.13 08/15/07 1,070,313
2,000,000 U.S. Treasury Notes 6.00 10/15/99 2,018,126
1,000,000 U.S. Treasury Notes 5.88 11/15/99 1,008,750
</TABLE>
77
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL/ INTEREST MATURITY
SHARES SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES (CONTINUED)
$ 1,000,000 U.S. Treasury Notes 5.88% 06/30/00 $ 1,015,313
1,000,000 U.S. Treasury Notes 5.88 02/15/04 1,041,250
1,500,000 U.S. Treasury Notes 5.88 11/15/05 1,570,313
1,600,000 U.S. Treasury Notes 5.75 11/30/02 1,643,000
600,000 U.S. Treasury Notes 5.75 08/15/03 618,563
2,100,000 U.S. Treasury Notes 5.63 11/30/00 2,128,875
1,000,000 U.S. Treasury Notes 5.63 02/28/01 1,015,313
1,500,000 U.S. Treasury Notes 5.63 05/15/08 1,566,563
700,000 U.S. Treasury Notes 5.50 01/31/03 712,907
1,900,000 U.S. Treasury Notes 5.38 01/31/00 1,907,125
1,000,000 U.S. Treasury Notes 5.13 08/31/00 1,004,375
------------
$ 39,505,353
TOTAL U.S. TREASURY SECURITIES $ 57,258,000
(Cost $54,245,923)
SHORT TERM INSTRUMENTS-18.34%
CASH EQUIVALENTS-7.19%
1,382,750 Dreyfus Institutional Money
Market Fund+ $ 1,382,750
5,000,000 Janus Institutional Money
Market Fund+ 5,000,000
1,000,000 Merrimac Cash Fund-Premium
Class+ 1,000,000
------------
$ 7,382,750
REPURCHASE AGREEMENTS-8.77%
9,000,000 Goldman Sachs Repurchase
Agreements, dated 8/31/98, due
9/02/98, with a maturity value
of $9,004,343 and an effective
yield of 5.79%, collateralized
by a Federal Home Loan
Mortgage Corporation
obligation with a rate of
7.00%, with a maturity date of
2/01/28 and with a market
value of $9,180,000.+ $ 9,000,000
</TABLE>
78
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C>
SHORT TERM INSTRUMENTS (CONTINUED)
U.S. TREASURY BILLS-2.38%
93,000 U.S. Treasury Bills 5.28%* 09/03/98 $ 92,975
332,000 U.S. Treasury Bills 4.90* 11/12/98 328,806
451,000 U.S. Treasury Bills 4.86* 10/15/98 448,343
1,442,000 U.S. Treasury Bills 4.80* 10/22/98 1,432,277
138,000 U.S. Treasury Bills 4.37* 09/10/98 137,830
------------
$ 2,440,231
------------
TOTAL SHORT TERM INSTRUMENTS $ 18,822,981
(Cost $18,822,809)
TOTAL INVESTMENT IN 114.75% $117,750,188
SECURITIES
(Cost $113,074,293)** (Notes
1 and 3)
OTHER ASSETS AND LIABILITIES (14.75)% (15,138,857)
-------- ------------
TOTAL NET ASSETS 100.00% $102,611,331
======== ============
- -----------------------------------------------------------------------
</TABLE>
+ Represents collateral received from securities lending transactions. See Note
4.
++ Investment is denominated in U.S. Dollars.
* Yield to maturity
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $4,842,640
Gross Unrealized Depreciation (166,745)
----------
NET UNREALIZED APPRECIATION $4,675,895
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
79
<PAGE>
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS-96.85%
ADVERTISING-2.54%
Ha-Lo Industries Inc+ 63,700 $ 1,481,025
Omnicom Group 35,000 1,666,875
Young & Rubicam Inc+ 37,000 1,130,804
------------
TOTAL ADVERTISING
- VALUE $ 4,278,704
- COST $ 4,006,466
AEROSPACE & DEFENSE-0.52%
BE Aerospace Inc+ 42,400 $ 882,450
------------
TOTAL AEROSPACE & DEFENSE
- VALUE $ 882,450
- COST $ 1,162,039
AIRLINES-0.88%
Atlas Air Inc+ 62,200 $ 1,492,800
------------
TOTAL AIRLINES
- VALUE $ 1,492,800
- COST $ 1,863,684
APPAREL-1.02%
Tommy Hilfiger Corp+ 36,900 $ 1,725,075
------------
TOTAL APPAREL
- VALUE $ 1,725,075
- COST $ 1,938,737
BANK & FINANCE-6.30%
Countrywide Credit Industries Inc 44,000 $ 1,647,250
Greenpoint Financial Corp 32,000 806,000
Schwab (Charles) Corp 41,000 1,224,875
Security Capital Group Class B+ 20,800 442,000
SLM Holding Corp 53,000 1,901,375
Sovereign Bancorp Inc 139,000 1,694,063
TCF Financial Corp 85,000 1,875,313
Unicapital Corp+ 99,000 1,039,500
------------
TOTAL BANK & FINANCE
- VALUE $ 10,630,376
- COST $ 15,228,466
</TABLE>
80
<PAGE>
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
BASIC INDUSTRIES-1.57%
Baker Hughes Inc 37,000 $ 675,250
Bowater Inc 20,000 756,250
Whitman Corp 78,000 1,209,000
------------
TOTAL BASIC INDUSTRIES
- VALUE $ 2,640,500
- COST $ 3,656,503
BIOTECHNOLOGY-0.74%
Genzyme Corp-General Division+ 46,000 $ 1,242,000
------------
TOTAL BIOTECHNOLOGY
- VALUE $ 1,242,000
- COST $ 1,370,830
BROADCASTING-3.31%
Capstar Broadcasting Corp+ 56,000 $ 948,500
Chancellor Media Corp Class A 65,000 2,319,688
Citadel Communication+ 37,000 897,250
Jacor Communications Inc+ 24,000 1,416,000
------------
TOTAL BROADCASTING
- VALUE $ 5,581,438
- COST $ 5,808,473
BUILDING MATERIALS & SERVICES-0.85%
Southdown Inc 34,000 $ 1,436,500
------------
TOTAL BUILDING MATERIALS & SERVICES
- VALUE $ 1,436,500
- COST $ 2,286,662
BUSINESS SERVICES-4.19%
Administaff Inc+ 51,000 $ 1,593,750
Concord EFS Inc 157,650 3,113,588
Convergys Corp+ 63,000 783,563
Quintiles Transnational Corp 23,300 832,975
Republic Services Inc Class A+ 45,750 737,719
------------
TOTAL BUSINESS SERVICES
- VALUE $ 7,061,595
- COST $ 8,204,536
</TABLE>
81
<PAGE>
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CHEMICALS-0.41%
EVI Weatherford Inc+ 45,000 $ 686,250
------------
TOTAL CHEMICALS
- VALUE $ 686,250
- COST $ 1,421,297
COMMERCIAL SERVICES-1.58%
Stewart Enterprises Inc Class A 76,000 $ 1,491,500
Valassis Communications Inc+ 39,000 1,162,688
------------
TOTAL COMMERCIAL SERVICES
- VALUE $ 2,654,188
- COST $ 3,346,740
COMPUTER SOFTWARE-18.49%
3Com Corp+ 34,000 $ 805,375
Altera Corp+ 30,000 873,750
America Online Inc 12,000 983,250
Bay Networks Inc+ 46,000 1,380,000
BMC Software Inc 32,000 1,354,000
Cambridge Technology Partners Inc+ 108,000 3,510,000
Ceridian Corp+ 74,000 3,589,000
Computer Horizons Corp+ 81,000 1,893,375
Computer Sciences Corp 20,000 1,131,250
Compuware Corp 48,000 2,181,000
Gartner Group Inc Class A+ 29,000 670,625
IMS Health Inc 33,000 1,815,000
JDA Software Group Inc 80,250 963,000
Keane Inc 35,000 1,470,000
Network Associates Inc 85,562 2,759,375
Sterling Commerce Inc+ 119,000 3,927,000
Storage Technology Corp 58,000 1,261,500
Veritas Software Corp 13,800 619,275
------------
TOTAL COMPUTER SOFTWARE
- VALUE $ 31,186,775
- COST $ 37,093,925
COMPUTER SYSTEMS-1.77%
Cisco Systems Inc 25,750 $ 2,108,281
Comverse Technology Inc+ 23,000 885,500
------------
TOTAL COMPUTER SYSTEMS
- VALUE $ 2,993,781
- COST $ 2,025,716
</TABLE>
82
<PAGE>
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ELECTRONICS-3.00%
Analog Devices Inc+ 1 $ 14
Maxim Integrated Products Inc 34,000 935,000
Policy Management Systems Corp 45,100 1,882,925
SCI Systems Inc+ 49,000 1,123,938
Solectron Corp+ 27,000 1,115,438
------------
TOTAL ELECTRONICS
- VALUE $ 5,057,315
- COST $ 6,050,143
ENERGY & RELATED-1.13%
Noble Affiliates Inc 28,000 $ 647,500
Santa Fe International Corp 45,100 608,850
Services (B J) Co 52,000 656,500
------------
TOTAL ENERGY & RELATED
- VALUE $ 1,912,850
- COST $ 4,666,255
ENGINEERING & CONSTRUCTION-0.92%
Centex Corp 44,003 $ 1,556,606
------------
TOTAL ENGINEERING & CONSTRUCTION
- VALUE $ 1,556,606
- COST $ 1,362,696
ENTERTAINMENT & LEISURE-0.92%
Family Golf Centers Inc 102,500 $ 1,550,313
------------
TOTAL ENTERTAINMENT & LEISURE
- VALUE $ 1,550,313
- COST $ 1,665,999
ENVIRONMENTAL CONTROL-3.06%
U.S. Filter Corp+ 110,700 $ 1,992,600
Waste Management Inc+ 72,000 3,177,000
------------
TOTAL ENVIRONMENTAL CONTROL
- VALUE $ 5,169,600
- COST $ 7,235,382
FOOD & RELATED-4.77%
American Italian Pasta Co+ 53,000 $ 1,328,313
CKE Restaurants Inc 72,000 2,232,000
Flowers Industries Inc 55,000 979,688
</TABLE>
83
<PAGE>
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
General Nutrition Co Inc+ 110,000 $ 1,464,375
Keebler Foods Co+ 26,000 671,125
U.S. Foodservice+ 37,000 1,371,313
------------
TOTAL FOOD & RELATED
- VALUE $ 8,046,814
- COST $ 10,719,554
HEALTHCARE-2.44%
Cardinal Health Inc 8,000 $ 700,000
Sunrise Assisted Living Inc+ 80,000 2,110,000
Total Renal Care Holdings 69,000 1,311,000
------------
TOTAL HEALTHCARE
- VALUE $ 4,121,000
- COST $ 4,535,979
HOSPITAL & MEDICAL SUPPLIES-3.02%
Guidant Corp 29,100 $ 1,796,925
Ocular Sciences Inc+ 57,100 1,009,956
Quorum Health Group Inc 120,000 2,280,000
------------
TOTAL HOSPITAL & MEDICAL SUPPLIES
- VALUE $ 5,086,881
- COST $ 7,205,943
HOUSEHOLD PRODUCTS-1.45%
Dial Corp 75,000 $ 1,462,500
Revlon Inc Class A+ 27,500 991,719
------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 2,454,219
- COST $ 3,168,621
INSURANCE-3.95%
Conseco Inc 59,479 $ 1,643,107
Fremont General Corporation 16,000 684,000
Nationwide Financial Services 36,000 1,608,750
Providian Financial Corp 42,500 2,727,969
------------
TOTAL INSURANCE
- VALUE $ 6,663,826
- COST $ 6,990,961
</TABLE>
84
<PAGE>
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST
31, 1998 (UNAUDITED)
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS-8.05%
ALZA Corp 46,000 $ 1,656,000
BioChem Pharma Inc 46,300 708,969
CliniChem Development Inc+ 1,933 7,488
Elan Corp PLC ADR (Ireland)+ 42,000 2,467,500
Henry Schein Inc+ 37,000 1,424,500
McKesson Corp 40,300 3,022,500
Omnicare Inc 34,200 1,066,613
Parexel International Corp+ 67,000 1,666,625
Watson Pharmaceutical Inc 34,500 1,554,656
------------
TOTAL PHARMACEUTICALS
- VALUE $ 13,574,851
- COST $ 13,638,998
PUBLISHING-0.91%
Harte-Hanks Communications Inc 70,000 $ 1,535,625
------------
TOTAL PUBLISHING
- VALUE $ 1,535,625
- COST $ 1,562,602
REAL ESTATE-0.39%
Mack-Cali Realty Corp REIT 22,800 $ 656,925
------------
TOTAL REAL ESTATE
- VALUE $ 656,925
- COST $ 911,326
RETAIL & RELATED-14.28%
99 Cents Only 76,300 $ 2,680,038
Amazon.com Inc 5,000 418,750
AutoZone Inc+ 111,000 2,879,063
Barnes & Noble 64,000 1,732,000
Circuit City Stores Inc 25,000 771,875
Goodys Family Clothing 64,000 1,152,000
Office Depot Inc+ 124,400 3,172,200
Pier 1 Imports Inc 64,500 640,969
Proffitts Inc 115,500 2,945,250
Rite Aid Corp 115,000 4,161,563
Ross Stores Inc 39,000 1,418,625
TJX Companies Inc 95,000 2,119,688
------------
TOTAL RETAIL & RELATED
- VALUE $ 24,092,021
- COST $ 27,079,142
</TABLE>
85
<PAGE>
MANAGED SERIES INVESTMENT TRUST--GROWTH STOCK MASTER PORTFOLIO--AUGUST 31, 1998
(UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS-2.87%
Cincinnati Bell Inc 37,900 $ 890,650
Crown Castle International Corp+ 32,000 260,000
Frontier Corp 20,000 607,500
NEXTEL Communications Class A+ 42,000 758,625
Pacific Gateway Exchange Inc+ 42,000 1,477,875
Reltec Corporation+ 34,000 850,000
------------
TOTAL TELECOMMUNICATIONS
- VALUE $ 4,844,650
- COST $ 5,930,394
UTILITIES-1.52%
AES Corp+ 68,300 $ 1,861,175
K N Energy 18,000 704,250
------------
TOTAL UTILITIES
- VALUE $ 2,565,425
- COST $ 4,017,036
TOTAL COMMON STOCKS
- VALUE $163,381,353
- COST $196,155,105
WARRANTS-0.00%
Checkers Drive In Restaurants expires 12/22/2000+ 5,095 $ 955
------------
TOTAL WARRANTS
- VALUE $ 955
- COST --
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL
INVESTMENTS IN
SECURITIES
(Cost
$196,155,105)*
(Notes 1 and
3) 96.85% $163,382,308
Other Assets
and
Liabilites,
Net 3.15% 5,319,176
------ ------------
TOTAL NET
ASSETS 100.00% $168,701,484
====== ============
- -----------------------------------------------------
</TABLE>
+ Non-income earning securities.
* Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized
Appreciation $ 7,660,227
Gross Unrealized
Depreciation (40,433,024)
------------
NET UNREALIZED
DEPRECIATION $(32,772,797)
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
86
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
87
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS
PERCENT OF NET ASSETS 19.16% 43.11%
ADVERTISING
PERCENT OF NET ASSETS 0.02% 0.06%
Omnicom Group 276 $ 13,145 1,340 $ 63,818
Outdoor Systems Inc 450 10,463 1,300 30,225
R.R. Donnelley Corp 36 475 287 3,785
Snyder Communications Inc 100 3,013 400 12,050
Young & Rubicam Inc+ 0 -- 200 6,113
------------ ------------
TOTAL ADVERTISING
- VALUE $ 27,096 $ 115,991
- COST $ 19,471 $ 72,457
AEROSPACE & DEFENSE
PERCENT OF NET ASSETS 0.19% 0.48%
Allied Signal Inc 822 $ 28,205 4,565 $ 156,637
Boeing Co 1,342 41,518 8,117 251,120
Briggs & Stratton Corp 52 1,914 168 6,185
Coltec Industries 200 2,875 700 10,063
Cordant Technologies Inc 232 8,265 500 17,813
GenCorp Inc 0 -- 0 --
General Dynamics Corp 126 5,993 1,004 47,753
Gulfstream Aerospace Corp 200 7,025 600 21,075
Lockheed Martin Corp 260 22,734 1,599 139,813
Newport News Shipbuilding 64 1,504 292 6,862
Northrop Grumman Corp 139 8,809 554 35,110
Primex Technologies Inc 47 1,727 56 2,058
Rockwell International Corp 320 11,600 1,579 57,239
Sequa Corp Class A 110 7,019 0 --
Stewart & Stevenson Services 364 4,755 380 4,964
Sundstrand Corp 326 14,853 760 34,628
Textron Inc 267 16,754 1,269 79,630
United Technologies Corp 306 22,204 1,701 123,429
------------ ------------
TOTAL AEROSPACE & DEFENSE
- VALUE $ 207,754 $ 994,379
- COST $ 231,863 $ 1,073,469
AIRLINES
PERCENT OF NET ASSETS 0.19% 0.38%
Airborne Freight Corp 300 $ 5,850 700 $ 13,650
Airtran Holdings Inc 300 1,275 200 850
AMR Corp 274 14,933 1,492 81,314
British Airways PLC ADR (UK) 560 41,160 2,100 154,350
Comair Holdings Inc 300 7,631 800 20,350
Continental Airlines Class B 200 8,250 700 28,875
Delta Air Lines Inc 141 14,382 564 57,528
</TABLE>
88
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
65.41% 81.85% 99.73%
0.08% 0.10% 0.13%
3,040 $ 144,780 2,620 $ 124,778 6,416 $ 305,562
2,525 58,706 2,325 54,056 5,025 116,831
628 8,284 549 7,235 1,381 18,215
700 21,088 700 21,088 1,400 42,175
500 15,281 400 12,225 900 27,506
------------ ------------ ------------
$ 248,139 $ 219,382 $ 510,289
$ 140,883 $ 150,306 $ 355,936
0.73% 0.92% 1.04%
10,396 $ 356,713 9,537 $ 327,238 18,537 $ 636,051
18,588 575,066 16,957 524,607 32,785 1,014,286
457 16,823 459 16,897 829 30,518
1,300 18,688 1,300 18,688 2,700 38,813
890 31,706 920 32,775 1,900 67,688
485 10,185 0 -- 0 --
2,302 109,489 2,224 105,779 4,092 194,626
1,100 38,638 1,100 38,638 2,300 80,788
3,590 313,901 3,268 285,746 6,397 559,338
615 14,453 465 10,928 846 19,881
1,268 80,360 1,184 75,036 2,173 137,714
107 3,932 85 3,124 126 4,630
3,564 129,195 3,348 121,365 6,551 237,474
137 8,742 102 6,509 0 --
495 6,466 365 4,768 845 11,038
1,490 67,888 1,430 65,154 2,990 136,232
2,986 187,372 2,744 172,186 5,368 336,842
4,057 294,386 3,540 256,871 7,610 552,201
------------ ------------ ------------
$ 2,264,003 $ 2,066,309 $ 4,058,120
$ 2,296,374 $ 2,112,386 $ 4,825,688
0.58% 0.75% 0.86%
1,400 $ 27,300 1,300 $ 25,350 2,800 $ 54,600
400 1,700 200 850 700 2,975
3,384 184,428 3,092 168,514 6,004 327,218
4,725 347,288 4,700 345,450 8,550 628,425
1,500 38,156 1,400 35,613 3,000 76,313
1,300 53,625 1,300 53,625 2,700 111,375
1,343 136,986 1,275 130,050 2,475 252,450
</TABLE>
89
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
FDX Corp+ 232 $ 11,615 1,187 $ 59,424
Japan Air Lines Co ADR
(Japan) 9,808 47,201 38,100 183,356
KLM Royal Dutch Airlines ADR
(Netherlands) 313 9,625 923 28,382
Northwest Airlines Corp
Class A 400 11,125 1,000 27,813
Southwest Airlines Co 519 9,245 2,504 44,594
UAL Corp 300 18,094 900 54,281
USAirways Group Inc+ 133 7,747 663 38,620
------------ ------------
TOTAL AIRLINES
- VALUE $ 208,133 $ 793,387
- COST $ 283,540 $ 1,036,709
APPAREL
PERCENT OF NET ASSETS 0.04% 0.09%
Fruit of the Loom Inc Class
A+ 117 $ 2,625 655 $ 14,697
Hartmarx Corp 81 537 230 1,524
Land's End Inc+ 0 -- 0 --
Liz Claiborne Inc 91 2,594 485 13,823
Nike Inc Class B 383 13,285 2,311 80,163
Nine West Group Inc 200 3,188 300 4,781
OshKosh B'Gosh Class A 26 949 49 1,788
Phillips Van Heusen Corp 0 -- 0 --
Reebok International Ltd+ 97 1,570 429 6,944
Russell Corp 75 2,372 298 9,424
Stride Rite Corp 63 551 375 3,281
VF Corp 130 4,924 1,011 38,292
Warnaco Group Inc Class A 300 8,175 800 21,800
------------ ------------
TOTAL APPAREL
- VALUE $ 40,770 $ 196,517
- COST $ 47,302 $ 234,754
AUTO PARTS & EQUIPMENT
PERCENT OF NET ASSETS 0.10% 0.24%
Bandag Inc 0 $ -- 100 $ 3,013
Bandag Inc Class A 100 2,863 100 2,863
Breed Technologies Inc 0 -- 0 --
Cooper Tire & Rubber Co 125 2,000 649 10,384
Dana Corp 250 9,780 1,352 52,979
Deluxe Corp 174 5,046 649 18,821
Eaton Corp 86 5,036 584 34,201
Genuine Parts Co 259 8,110 1,444 45,215
Goodyear Tire & Rubber Co 247 12,103 1,245 61,005
Illinois Tool Works Inc 359 17,389 1,913 92,661
ITT Industries Inc 236 7,110 981 29,553
Lear Corp 200 8,113 700 28,394
</TABLE>
90
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,658 $ 133,066 2,489 $ 124,606 4,758 $ 238,197
91,675 441,186 87,674 421,931 168,287 809,881
2,058 63,283 1,998 61,439 3,980 122,385
2,000 55,625 1,900 52,844 4,000 111,250
6,201 110,455 5,132 91,414 13,149 234,217
1,600 96,500 1,500 90,469 3,300 199,031
1,693 98,617 1,470 85,628 3,662 213,312
------------ ------------ ------------
$ 1,788,215 $ 1,687,783 $ 3,381,629
$ 2,246,391 $ 2,131,584 $ 4,297,991
0.15% 0.18% 0.20%
1,442 $ 32,355 1,251 $ 28,069 2,293 $ 51,449
389 2,577 354 2,345 618 4,094
547 11,214 0 -- 0 --
1,299 37,022 1,214 34,599 2,128 60,648
5,319 184,503 4,886 169,483 9,502 329,601
300 4,781 400 6,375 1,000 15,938
228 8,322 85 3,103 222 8,103
410 3,869 290 2,737 0 --
1,041 16,851 923 14,941 2,094 33,897
752 23,782 721 22,802 1,106 34,977
893 7,814 707 6,186 1,450 12,688
2,254 85,370 2,131 80,712 3,991 151,159
1,500 40,875 1,400 38,150 3,000 81,750
------------ ------------ ------------
$ 459,335 $ 409,502 $ 784,304
$ 528,070 $ 477,276 $ 1,066,053
0.36% 0.46% 0.53%
200 $ 6,025 100 $ 3,013 300 $ 9,038
200 5,725 200 5,725 400 11,450
0 -- 0 -- 100 731
1,631 26,096 1,328 21,248 2,507 40,112
3,065 120,129 2,804 109,868 5,198 203,694
1,421 41,209 1,377 39,933 2,599 75,371
1,274 74,609 1,294 75,780 2,419 141,663
3,274 102,517 3,148 98,572 5,851 183,209
2,908 142,492 2,687 131,663 5,071 248,479
4,372 211,769 3,804 184,256 10,087 488,589
2,216 66,757 2,044 61,575 3,942 118,753
1,300 52,731 1,200 48,675 2,600 105,462
</TABLE>
91
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Mascotech Inc 0 $ -- 300 $ 5,250
Meritor Automotive Inc 370 6,568 1,030 18,283
Modine Manufacturing Co 309 8,594 250 6,953
Navistar International Corp+ 134 2,814 581 12,201
PACCAR Inc 103 4,223 587 24,067
Strattec Security Corp 10 278 28 777
Superior Industries
International Inc 322 6,702 260 5,411
The Pep Boys--Manny Moe &
Jack 59 867 499 7,329
TRW Inc 131 5,617 960 41,160
------------ ------------
TOTAL AUTO PARTS & EQUIPMENT
- VALUE $ 113,213 $ 500,520
- COST $ 116,188 $ 496,911
AUTOMOBILES
PERCENT OF NET ASSETS 0.68% 1.47%
Chrysler Corp 919 $ 41,010 5,150 $ 229,819
Daimler-Benz
Aktiengesellschaft ADR
(Germany) 4,017 341,444 14,586 1,239,809
Fiat SpA ADR (UK) 3,488 53,192 12,530 191,082
Ford Motor Co 1,681 73,963 9,792 430,847
General Motors Corp Class A 911 52,610 5,427 313,409
Harley-Davidson Inc 736 22,678 2,200 67,787
Hertz Corp. Class A 100 3,775 300 11,325
Honda Motor Co Ltd ADR
(Japan) 533 35,711 2,195 147,065
Nissan Motor Co Ltd ADR
(Japan) 3,635 17,948 11,246 55,527
Toyota Motor Corp ADR
(Japan) 2,178 91,475 8,651 363,341
------------ ------------
TOTAL AUTOMOBILES
- VALUE $ 733,806 $ 3,050,011
- COST $ 609,037 $ 2,549,922
BANK & FINANCE
PERCENT OF NET ASSETS 2.04% 4.85%
Advanta Corp Class B 163 $ 1,671 163 $ 1,671
Ahmanson (H F) & Co 134 7,144 872 46,488
Allied Irish Banks PLC ADR
(Ireland) 1,516 117,489 5,302 410,904
American Express Corp 661 51,558 3,459 269,802
Amsouth Bancorp 600 20,625 1,625 55,859
Associated Banc Corp 250 8,000 925 29,600
Associates First Capital
Corp 466 27,552 2,818 166,614
Astoria Financial Corp 100 3,600 400 14,400
Banc One Corp 922 35,036 5,668 215,399
Banco Bilbao Vizcaya ADR
(Spain) 3,720 46,733 13,008 163,413
Banco Central
Hispanoamericano SA ADR
(Spain) 5,148 47,297 18,117 166,450
Banco Santander SA ADR
(Spain) 1,805 32,272 6,324 113,042
</TABLE>
92
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0 $ -- 400 $ 7,000 800 $ 14,000
1,917 34,027 1,832 32,518 4,310 76,502
465 12,933 335 9,317 500 13,906
1,312 27,552 1,259 26,439 2,384 50,064
1,463 59,983 1,328 54,448 2,518 103,238
72 1,998 49 1,360 0 --
454 9,449 331 6,889 510 10,614
1,272 18,683 1,009 14,820 2,060 30,256
2,260 96,898 2,140 91,753 4,003 171,629
------------ ------------ ------------
$ 1,111,582 $ 1,024,852 $ 2,096,760
$ 1,098,788 $ 989,228 $ 2,212,504
2.24% 2.93% 3.19%
11,930 $ 532,376 10,846 $ 484,003 20,864 $ 931,056
32,403 2,754,254 31,775 2,700,874 58,168 4,944,279
27,870 425,017 27,375 417,469 50,080 763,720
22,367 984,147 20,343 895,091 39,375 1,732,499
12,337 712,462 11,229 648,475 21,815 1,259,815
4,218 129,967 3,988 122,880 8,580 264,371
600 22,650 500 18,875 1,100 41,525
5,287 354,229 5,092 341,164 9,744 652,848
34,144 168,586 32,849 162,192 62,607 309,122
20,571 863,982 19,669 826,097 37,744 1,585,247
------------ ------------ ------------
$ 6,947,670 $ 6,617,120 $ 12,484,482
$ 5,848,392 $ 5,751,869 $ 11,115,185
7.16% 9.05% 10.66%
272 $ 2,788 217 $ 2,224 380 $ 3,895
2,005 106,892 1,884 100,441 3,615 192,725
11,853 918,608 11,741 909,927 21,391 1,657,802
8,002 624,156 7,043 549,354 17,451 1,361,177
3,150 108,281 3,025 103,984 6,425 220,860
1,725 55,200 1,650 52,800 3,500 112,000
6,381 377,277 5,862 346,591 11,318 669,177
700 25,200 600 21,600 1,400 50,400
12,949 492,054 11,748 446,416 22,959 872,442
29,205 366,888 28,749 361,159 52,470 659,154
40,251 369,806 39,576 363,605 72,396 665,138
14,280 255,255 13,974 249,785 25,296 452,166
</TABLE>
93
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Bank of New York Inc 988 $ 23,897 6,004 $ 145,222
BankAmerica Corp 971 62,205 5,513 353,176
BankBoston Corp 412 14,703 2,404 85,793
Bankers Trust Corp 94 6,985 769 57,146
BB&T Corp 400 11,275 2,254 63,535
Bear Stearns Co Inc 200 7,388 955 35,275
Campstead Mortgage Corp 0 -- 400 1,200
Capital One Financial Corp 0 -- 100 8,750
CCB Financial Corp 100 9,506 200 19,013
Centura Banks Inc 100 5,625 400 22,500
Charter One Financial Inc 702 16,146 1,802 41,446
Chase Manhattan 1,258 66,673 6,368 337,504
Citicorp 597 64,550 3,616 390,979
City National Corp 200 5,575 600 16,725
Comdisco Inc 648 8,060 1,634 20,323
Comerica Inc 214 11,182 1,232 64,372
Commerce Bancshares Inc 235 9,400 835 33,400
Compass Bancshares Inc 400 13,200 1,000 33,000
ContiFinancial Corp 0 -- 100 1,263
Countrywide Credit
Industries Inc 104 3,894 845 31,635
Credit Acceptance Corp 200 1,275 200 1,275
Crescent Operating Inc 0 -- 80 645
Crescent Real Estate Co 500 11,500 1,600 36,800
Crestar Financial Corp 604 30,502 1,640 82,820
Dime Bancorp Inc 500 9,500 1,700 32,300
Donaldson Lufkin & Jenrette
In 100 3,500 400 14,000
Duke Realty Investments 400 8,300 1,100 22,825
Edwards A G & Sons Inc 382 10,362 1,230 33,364
Equifax Inc 216 7,695 1,165 41,503
Federal Home Loan Mortgage
Corp 993 39,224 5,034 198,843
Federal National Mortgage
Assoc 1,361 77,321 8,334 473,474
Fifth Third Bancorp 409 21,754 1,923 102,280
Finova Group Inc 300 13,388 800 35,700
First American Corp 600 21,525 1,568 56,252
First Chicago NBD Corp 347 21,991 2,346 148,678
First Hawaiian Inc 200 5,875 300 8,813
First Security Corp 841 13,036 2,655 41,153
First Tennessee National
Corp 616 14,669 1,980 47,149
First Union Corp 1,341 65,038 7,793 377,961
First Virginia Banks Inc 338 14,534 770 33,110
Firstar Corp 600 23,250 1,800 69,750
Firstmerit Corp 300 6,638 1,000 22,125
Firstplus Financial Group 200 4,550 400 9,100
Fleet Financial Group Inc 366 23,996 2,271 148,892
</TABLE>
94
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
13,890 $ 335,964 12,646 $ 305,875 24,736 $ 598,302
12,534 802,959 11,461 734,220 22,164 1,419,880
5,388 192,284 5,018 179,080 9,554 340,958
1,799 133,688 1,627 120,906 3,175 235,942
5,204 146,688 4,662 131,410 9,324 262,820
2,109 77,901 1,969 72,730 3,683 136,041
800 2,400 700 2,100 1,500 4,500
100 8,750 100 8,750 300 26,250
400 38,025 400 38,025 900 85,556
700 39,375 700 39,375 1,400 78,750
3,504 80,592 3,242 74,566 7,076 162,748
14,830 785,990 13,090 693,770 32,272 1,710,415
8,330 900,681 7,550 816,343 14,667 1,585,868
1,100 30,663 1,000 27,875 2,100 58,538
3,122 38,830 3,008 37,412 6,526 81,167
2,917 152,413 2,630 137,418 5,169 270,080
1,663 66,520 1,524 60,960 3,326 133,040
1,850 61,050 1,750 57,750 3,850 127,050
200 2,525 200 2,525 300 3,788
2,007 75,137 1,876 70,233 3,464 129,683
0 -- 200 1,275 500 3,188
0 -- 0 -- 200 1,613
3,000 69,000 2,900 66,700 6,200 142,600
3,070 155,035 2,930 147,965 6,270 316,635
3,300 62,700 3,100 58,900 6,700 127,300
700 24,500 700 24,500 1,400 49,000
2,100 43,575 2,000 41,500 4,200 87,150
2,425 65,778 2,265 61,438 4,837 131,204
2,594 92,411 2,381 84,823 5,971 212,717
11,847 467,957 10,428 411,906 22,816 901,232
19,126 1,086,595 17,193 976,776 33,621 1,910,092
4,317 229,611 3,769 200,464 9,265 492,782
1,500 66,938 1,400 62,475 3,100 138,338
3,019 108,307 2,919 104,719 6,155 220,811
5,244 332,339 4,853 307,559 9,277 587,930
600 17,625 500 14,688 1,300 38,188
4,992 77,380 4,729 73,300 10,088 156,360
3,740 89,059 3,500 83,344 7,460 177,641
17,858 866,113 16,323 791,663 31,422 1,523,966
1,486 63,898 1,441 61,963 3,017 129,731
3,500 135,625 3,300 127,875 7,100 275,125
1,900 42,038 1,800 39,825 3,800 84,075
800 18,200 800 18,200 1,700 38,675
5,278 346,039 4,755 311,750 8,944 586,391
</TABLE>
95
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Franklin Resources Inc 388 $ 12,513 1,600 $ 51,600
GATX Corp 246 8,118 740 24,420
Golden State Bancorp 200 3,175 600 9,525
Golden West Financial 64 4,872 500 38,063
Greenpoint Financial Corp 400 10,075 1,300 32,744
GTECH Holdings Corp 100 2,625 500 13,125
Hibernia Corp Class A 800 10,800 2,200 29,700
Highwood Properties Inc 300 7,631 900 22,894
Household International Inc 569 21,017 3,966 146,494
Huntington Bancshares Inc 279 6,347 1,689 38,425
INMC Mortgage Holdings Inc
REIT 300 5,888 900 17,663
John Nuveen & Co Inc Class A 0 -- 100 3,413
Keycorp 664 16,932 3,588 91,494
Keystone Financial Inc 300 8,363 700 19,513
Legg Mason Inc 100 4,750 300 14,250
Lehman Brothers Holdings 200 7,875 1,000 39,375
Long Island Bancorp Inc 100 3,750 400 15,000
M & T Bank Corp 0 -- 100 41,000
MBNA Corp 644 15,134 3,840 90,240
Medaphis Corp 800 3,250 900 3,656
Mellon Bank Corp 337 17,524 2,073 107,796
Mercantile Bancorp 154 6,766 1,205 52,945
Mercantile Bankshares 454 12,712 1,035 28,980
Merrill Lynch & Co Inc 430 28,380 2,774 183,084
MGIC Investment Corp 105 4,358 884 36,686
Morgan (J P) & Co Inc 246 22,878 1,484 138,012
Morgan Stanley Dean Witter 784 45,521 4,816 279,629
National Australia Bank Ltd
ADR (Australia) 1,013 61,603 3,531 214,729
National City Corp 436 25,615 2,496 146,640
National Commerce Bancorp 400 6,700 1,200 20,100
NationsBank Corp 1,262 71,933 7,697 438,728
Northern Trust Corp 134 7,471 920 51,290
Northfork Bancorp 700 13,300 2,000 38,000
Norwest Corp 1,047 31,148 6,118 182,011
Oakwood Homes Corp 200 2,850 600 8,550
Ocwen Financial Corp 0 -- 300 4,575
Old Kent Financial Corp 522 16,835 1,485 47,891
Old National Bancorp 345 16,840 231 11,276
Pacific Century Financial
Corp 748 11,033 2,920 43,070
Paine Webber Group Inc 500 17,375 1,500 52,125
Peoples Bank Bridgeport 100 2,050 400 8,400
PNC Bank Corp 419 18,017 2,425 104,275
Price (T Rowe) & Associates 400 12,175 1,400 42,613
</TABLE>
96
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,188 $ 102,813 2,939 $ 94,783 6,395 $ 206,239
1,304 43,032 1,234 40,722 2,720 89,760
1,200 19,050 1,200 19,050 2,500 39,688
1,002 76,277 997 75,897 1,901 144,714
2,400 60,450 2,300 57,931 5,000 125,938
900 23,625 900 23,625 1,900 49,875
4,200 56,700 4,000 54,000 8,600 116,100
1,600 40,700 1,300 33,069 2,900 73,769
9,033 333,656 8,207 303,146 15,956 589,375
3,888 88,452 3,710 84,403 6,868 156,247
1,700 33,363 1,600 31,400 3,400 66,725
0 -- 0 -- 0 --
8,074 205,887 7,412 189,006 14,474 369,087
1,400 39,025 1,300 36,238 2,800 78,050
700 33,250 600 28,500 1,300 61,750
2,200 86,625 1,800 70,875 3,300 129,937
700 26,250 600 22,500 1,400 52,500
100 41,000 100 41,000 300 123,000
8,745 205,508 7,858 184,663 20,291 476,838
1,100 4,469 1,200 4,875 2,000 8,125
4,756 247,312 4,432 230,464 8,361 434,772
2,803 123,157 2,196 96,487 4,910 215,733
1,919 53,732 1,862 52,136 3,920 109,760
6,338 418,308 5,794 382,404 10,912 720,192
2,091 86,777 1,813 75,240 3,694 153,301
3,272 304,296 3,030 281,790 5,797 539,121
11,091 643,971 9,628 559,026 19,652 1,141,044
7,822 475,675 7,674 466,675 14,048 854,294
5,749 337,754 5,006 294,103 12,449 731,379
2,300 38,525 2,200 36,850 4,800 80,400
17,648 1,005,935 16,066 915,761 30,902 1,761,413
2,056 114,622 1,876 104,587 3,730 207,948
3,700 70,300 3,500 66,500 7,550 143,450
13,885 413,079 12,708 378,063 24,786 737,384
1,200 17,100 1,200 17,100 2,500 35,625
500 7,625 400 6,100 1,100 16,775
2,808 90,558 2,680 86,430 5,616 181,116
463 22,600 347 16,938 810 39,538
5,514 81,332 4,954 73,072 4,470 65,932
2,950 102,513 2,800 97,300 5,950 206,763
700 14,700 700 14,700 1,400 29,400
5,522 237,446 5,091 218,913 9,970 428,710
2,600 79,138 2,500 76,094 5,400 164,363
</TABLE>
97
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Provident Financial Group 100 $ 3,763 300 $ 11,475
Regions Financial Corp 940 32,548 2,527 87,497
Republic New York Corp 104 4,290 882 36,383
Ryder System Inc 139 3,275 587 13,831
Sabre Group Holding Inc 0 -- 200 6,400
Schwab (Charles) Corp 278 8,305 2,047 61,154
SLM Holding Corp 250 8,969 1,300 46,638
Sovereign Bancorp Inc 600 7,313 1,900 23,156
Spieker Properties Inc 300 10,669 800 28,450
Star Banc Corp 500 27,438 1,400 76,825
State Street Boston Corp 245 12,755 1,267 65,963
Summit Bancorp 204 6,962 1,455 49,652
SunTrust Banks Inc 239 13,384 1,672 93,632
Synovus Financial Corp 337 6,129 2,115 38,467
TCF Financial Corp 400 8,825 1,400 30,888
The Fund American Companies 0 -- 0 --
Trustmark Corp 300 5,213 1,000 17,375
U.S. Bancorp 1,041 35,524 5,518 188,302
Union Planters Corp 693 27,893 1,887 75,952
UnionBanCal Corp 100 7,488 200 14,975
United Asset Management Corp 500 10,875 1,000 21,750
Valley National Bancorp 300 8,175 800 21,800
Wachovia Corp 312 22,874 1,644 120,526
Washington Federal Inc 312 7,059 753 17,037
Washington Mutual Inc 510 16,320 3,133 100,256
Wells Fargo & Co 156 43,973 674 189,984
Wesco Financial Corp 0 -- 0 --
Westamerica Bancorp 200 4,800 600 14,550
Westpac Banking Corp ADR
(Australia) 1,496 38,990 5,158 134,430
Wilmington Trust Corp 192 8,976 510 23,843
Zions Bancorp 400 15,350 1,000 38,375
------------ ------------
TOTAL BANK & FINANCE
- VALUE $ 2,202,998 $ 10,088,276
- COST $ 1,913,720 $ 8,032,951
BASIC INDUSTRIES
PERCENT OF NET ASSETS 0.26% 0.58%
ASARCO Inc 25 $ 398 302 $ 4,813
Avery-Dennison Corp 100 5,369 866 46,493
Baker Hughes Inc 590 10,764 3,706 67,625
Bemis Co 42 1,507 448 16,072
Boise Cascade Corp 69 1,686 403 9,848
Boise Cascade Office
Products 0 -- 100 1,369
Bowater Inc 195 7,373 810 30,628
</TABLE>
98
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
500 $ 19,125 500 $ 19,125 1,100 $ 42,075
4,931 170,719 4,991 172,796 10,588 366,609
1,980 81,675 1,904 78,540 3,598 148,418
1,367 32,210 1,303 30,702 2,460 57,964
400 12,800 300 9,600 500 16,000
4,757 142,115 4,045 120,844 10,709 319,931
3,050 109,419 2,700 96,863 7,400 265,475
3,700 45,094 3,200 39,000 6,800 82,875
1,500 53,344 1,400 49,788 3,000 106,688
2,600 142,675 2,500 137,188 5,400 296,325
2,832 147,441 2,415 125,731 6,526 339,760
3,257 111,145 3,071 104,798 5,817 198,505
3,854 215,824 3,576 200,256 6,943 388,808
4,636 84,317 4,222 76,788 10,618 193,115
2,600 57,363 2,500 55,156 5,300 116,931
0 -- 0 -- 100 12,800
1,800 31,275 1,700 29,538 3,700 64,288
12,879 439,496 11,365 387,831 28,073 957,991
3,478 139,990 3,281 132,067 7,052 283,843
300 22,463 300 22,463 600 44,925
1,800 39,150 1,700 36,975 3,700 80,475
1,500 40,875 1,400 38,150 3,000 81,750
3,795 278,221 3,438 252,048 6,728 493,246
1,528 34,571 1,395 31,562 3,037 68,712
7,122 227,904 6,217 198,944 12,604 403,328
1,575 443,953 1,424 401,390 2,773 781,639
0 -- 0 -- 100 28,475
1,200 29,100 1,100 26,675 2,300 55,775
11,559 301,256 11,324 295,132 20,465 533,369
949 44,366 904 42,262 1,875 87,656
1,900 72,913 1,800 69,075 3,900 149,663
------------ ------------ ------------
$ 22,212,949 $ 20,416,520 $ 41,724,600
$ 16,885,514 $ 15,764,261 $ 37,412,831
0.88% 1.07% 1.29%
875 $ 13,945 621 $ 9,897 1,370 $ 21,834
1,922 103,187 1,659 89,068 4,073 218,669
8,439 154,004 5,432 99,128 10,401 189,820
975 34,978 892 32,001 1,634 58,620
1,147 28,030 996 24,340 1,823 44,550
800 10,950 200 2,738 400 5,475
1,452 54,904 1,107 41,858 2,275 86,023
</TABLE>
99
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Broken Hill Propriety Co Ltd
ADR (Australia) 590 $ 8,113 2,278 $ 31,323
Champion International Corp 142 4,686 801 26,433
Chesapeake Corp 256 8,384 200 6,550
Consolidated Papers Inc 172 4,311 760 19,048
Crown Vantage Inc 21 79 48 180
Cyprus Amax Minerals 140 1,286 800 7,350
Deltic Timber Corp 140 3,168 165 3,733
Dover Corp 310 8,448 1,748 47,633
Fort James Corp 276 8,039 1,746 50,852
Georgia-Pacific Corp 137 5,874 693 29,712
Glatfelter (P H) Co 486 5,650 280 3,255
Harnischfeger Industries Inc 110 1,767 405 6,505
Homestake Mining Co 222 1,970 1,787 15,860
Ikon Office Solutions Inc 194 1,079 1,028 5,718
Inco Ltd 236 1,977 1,269 10,628
Longview Fibre Co 554 5,402 540 5,265
Louisiana-Pacific Corp 123 2,322 942 17,780
LTB Corp 900 4,894 1,400 7,613
Mark IV Industries Inc 247 3,504 532 7,548
Mead Corp 112 3,066 875 23,953
Minnesota Mining &
Manufacturing Co 585 40,073 3,065 209,952
Mitsubishi Corp ADR (Japan) 3,294 35,602 17,925 193,735
NACCO Industries Inc Class A 18 1,715 48 4,572
Newmont Gold Co 100 1,488 100 1,488
Newmont Mining Corp 164 2,245 1,236 16,918
Potlatch Corp 102 3,353 245 8,054
Rayonier Inc 156 6,084 450 17,550
Sealed Air Corp+ 222 7,992 740 26,640
Smith International Inc 214 3,772 700 12,338
St Joe Paper Corp 300 6,019 400 8,025
Stone Container Corp+ 87 908 850 8,872
U.S. Industries Inc 327 4,537 1,330 18,454
Union Camp Corp 75 2,780 544 20,162
Unisource Worldwide Inc 94 623 665 4,406
Varco International Inc 584 4,161 400 2,850
Varian Associates Inc 177 6,029 490 16,691
Watts Industries Inc Class A 308 5,140 0 --
Wausau-Mosinee Paper Corp 392 4,998 316 4,029
Westvaco Corp 206 4,326 832 17,472
Weyerhauser Co 269 10,104 1,619 60,814
</TABLE>
100
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
5,041 $ 69,314 5,193 $ 71,404 9,571 $ 131,601
1,832 60,456 1,643 54,219 3,114 102,762
361 11,823 266 8,712 650 21,288
1,540 38,596 1,380 34,586 3,040 76,190
104 390 81 304 132 495
1,856 17,052 1,645 15,113 3,034 27,875
307 6,946 199 4,502 334 7,557
4,052 110,417 3,418 93,141 8,794 239,636
3,964 115,452 3,319 96,666 6,863 199,885
1,689 72,416 1,636 70,144 2,997 128,496
769 8,940 489 5,685 770 8,951
998 16,030 854 13,717 1,480 23,773
4,161 36,929 3,596 31,914 6,826 60,581
2,671 14,857 2,325 12,933 4,316 24,008
3,005 25,167 2,850 23,869 5,233 43,826
890 8,677 575 5,606 1,330 12,968
2,021 38,146 1,874 35,372 3,516 66,365
2,800 15,225 2,700 14,681 5,900 32,081
1,070 15,181 862 12,230 2,175 30,858
1,911 52,314 1,840 50,370 3,312 90,666
7,072 484,432 6,229 426,687 15,246 1,044,351
42,788 462,457 40,900 442,051 78,390 847,247
152 14,478 149 14,192 269 25,622
300 4,463 200 2,975 300 4,463
2,805 38,393 2,693 36,860 4,961 67,904
540 17,753 532 17,490 865 28,437
862 33,618 826 32,214 1,619 63,141
1,622 58,392 1,339 48,204 4,853 174,708
1,297 22,860 1,227 21,626 2,600 45,825
800 16,050 600 12,038 1,600 32,100
2,014 21,021 1,679 17,525 3,154 32,920
2,583 35,839 2,528 35,076 5,337 74,051
1,274 47,218 1,251 46,365 2,201 81,575
1,174 7,778 1,092 7,235 2,674 17,715
1,048 7,467 748 5,330 1,900 13,538
835 28,442 790 26,909 1,765 60,120
464 7,743 334 5,574 0 --
572 7,293 407 5,189 371 4,730
1,803 37,863 1,807 37,947 3,274 68,754
3,699 138,944 3,441 129,253 6,592 247,612
</TABLE>
101
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Whitman Corp 564 $ 8,742 1,477 $ 22,893
Willamette Industries Inc 219 5,393 920 22,655
------------ ------------
TOTAL BASIC INDUSTRIES
- VALUE $ 277,200 $ 1,202,357
- COST $ 376,222 $ 1,639,349
BEVERAGES
PERCENT OF NET ASSETS 0.72% 1.60%
Anheuser-Busch Inc 752 $ 34,686 3,700 $ 170,663
Cadbury Schweppes PLC ADR
(UK) 1,257 69,920 4,362 242,636
Coca-Cola Co 3,537 230,346 18,399 1,198,234
Coca-Cola Enterprises Co 1,036 24,605 3,130 74,338
Coors (Adolph) Co Class B 69 2,846 243 10,024
Diageo PLC ADR (UK) 3,357 126,936 11,995 453,560
Hanson PLC ADR (UK) 2,129 52,427 7,456 183,604
Kirin Brewery Co ADR (Japan) 1,597 133,947 6,002 503,417
Louis Vuitton Moet Hennessey
ADR (France) 837 26,679 3,021 96,294
Pepsico Inc 2,162 59,860 11,152 308,771
Seagrams Co Ltd 444 13,709 2,775 85,678
------------ ------------
TOTAL BEVERAGES
- VALUE $ 775,961 $ 3,327,219
- COST $ 718,489 $ 2,920,745
BIOTECHNOLOGY
PERCENT OF NET ASSETS 0.04% 0.05%
Agouron Pharmaceuticals Inc 0 $ -- 300 $ 5,775
Beckman Coulter Inc 94 5,205 450 24,919
Biogen Inc 418 19,333 960 44,400
Chiron Corp 496 7,130 1,192 17,135
Genzyme Corp--General
Division+ 326 8,802 420 11,340
Genzyme Corp--Tissue Repair 44 127 12 35
Quest Diagnostics Inc 46 765 240 3,990
------------ ------------
TOTAL BIOTECHNOLOGY
- VALUE $ 41,362 $ 107,594
- COST $ 32,356 $ 108,982
BROADCASTING
PERCENT OF NET ASSETS 0.19% 0.43%
British Sky Broadcasting ADR
(UK) 617 $ 28,883 2,285 $ 106,967
Chancellor Media Corp Class
A 600 21,413 1,700 60,669
Clear Channel Communications
Inc 408 18,360 1,984 89,280
Hearst-Argyle Television 200 6,400 700 23,056
Heftel Broadcasting Corp 100 2,988 300 9,075
Jacor Communications Inc+ 0 -- 100 5,900
</TABLE>
102
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,851 $ 44,190 2,694 $ 41,757 5,765 $ 89,358
2,062 50,777 1,958 48,216 3,576 88,059
------------ ------------ ------------
$ 2,721,797 $ 2,414,911 $ 5,067,083
$ 3,688,318 $ 3,305,749 $ 7,139,125
2.47% 3.14% 3.91%
8,438 $ 389,203 7,466 $ 344,369 18,312 $ 844,641
9,781 544,068 9,627 535,502 17,462 971,324
42,957 2,797,574 37,807 2,462,180 93,360 6,080,069
5,964 141,645 5,644 134,045 12,065 286,544
738 30,443 656 27,060 1,159 47,809
26,742 1,011,181 26,282 993,787 48,024 1,815,906
16,587 408,455 16,287 401,064 29,795 733,702
14,486 1,215,012 13,780 1,155,797 26,502 2,222,854
6,822 217,451 6,683 213,021 12,213 389,289
25,949 718,463 22,765 630,306 56,369 1,560,716
6,386 197,168 5,840 180,310 11,229 346,695
------------ ------------ ------------
$ 7,670,663 $ 7,077,441 $ 15,299,549
$ 6,697,221 $ 6,255,824 $ 14,045,697
0.06% 0.09% 0.10%
500 $ 9,625 500 $ 9,625 1,100 $ 21,175
850 47,069 805 44,577 1,580 87,493
1,782 82,418 1,722 79,643 3,690 170,663
2,324 33,408 2,200 31,625 4,652 66,873
734 19,818 744 20,088 1,500 40,500
71 204 52 150 54 155
515 8,562 389 6,467 825 13,716
------------ ------------ ------------
$ 201,104 $ 192,175 $ 400,575
$ 203,545 $ 179,527 $ 404,634
0.64% 0.81% 0.95%
5,117 $ 239,540 5,040 $ 235,935 9,202 $ 430,769
3,200 114,200 3,000 107,063 6,500 231,969
4,596 206,820 4,138 186,210 8,098 364,410
1,300 42,819 1,300 42,819 2,700 88,931
700 21,175 600 18,150 1,300 39,325
300 17,700 200 11,800 600 35,400
</TABLE>
103
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Kingworld Productions 104 $ 2,184 580 $ 12,180
MediaOne Group Inc+ 820 33,620 4,940 202,540
TCA Cable TV Inc 532 12,236 0 --
TCI Satellite Entertainment
Class A 107 428 543 2,172
Tele-Communications Inc
Class A+ 776 25,608 3,851 127,083
Tele-Communications
International Inc Class A 300 6,225 300 6,225
Tribune Co 141 9,086 967 62,311
Univision Communications Inc 0 -- 300 7,988
USA Networks Inc 522 10,244 1,428 28,025
Viacom Inc Class B+ 487 24,167 2,910 144,409
------------ ------------
TOTAL BROADCASTING
- VALUE $ 201,842 $ 887,880
- COST $ 149,852 $ 654,151
BUILDING MATERIALS &
SERVICES
PERCENT OF NET ASSETS 0.15% 0.28%
AMBAC Inc 300 $ 14,156 900 $ 42,469
American Standard Co Inc 200 7,825 700 27,388
Cooper Industries Inc 133 5,661 984 41,882
Corning Inc 320 7,880 1,743 42,921
Cytec Industries Inc 100 2,288 500 11,438
Dal Tile International Inc 0 -- 0 --
Danaher Corp 400 14,500 1,160 42,050
Diebold Inc 366 8,006 1,035 22,641
Fastenal Co 100 2,919 400 11,675
Georgia-Pacific (Timber
Group) 437 8,795 1,293 26,022
Kennametal Inc 300 7,781 300 7,781
Lafarge Corp 300 8,569 400 11,425
Lawson Products Inc 0 -- 0 --
Martin Marietta Inc 0 -- 100 4,263
Owens Corning Fiberglass
Corp 28 982 411 14,411
Owens Illinois Inc+ 206 6,425 1,258 39,234
PPG Industries Inc 205 10,417 1,464 74,389
Snap-On Inc 138 3,623 477 12,521
Southdown Inc 175 7,394 600 25,350
Stanley Works 112 4,410 766 30,161
USG Corp 200 8,600 500 21,500
Valspar Corp 200 6,650 600 19,950
Vulcan Materials Co 200 22,300 400 44,600
------------ ------------
TOTAL BUILDING MATERIALS &
SERVICES
- VALUE $ 159,181 $ 574,071
- COST $ 125,063 $ 563,287
</TABLE>
104
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,398 $ 29,358 1,268 $ 26,628 2,324 $ 48,804
11,184 458,544 10,197 418,077 19,985 819,385
742 17,066 552 12,696 0 --
1,150 4,600 883 3,532 1,866 7,464
8,784 289,872 400 8,300 20,522 677,226
500 10,375 7,934 261,822 800 16,600
2,199 141,698 1,995 128,553 3,999 257,686
500 13,313 400 10,650 1,000 26,625
2,699 52,968 2,544 49,926 5,512 108,173
6,602 327,624 6,039 299,685 11,580 574,657
------------ ------------ ------------
$ 1,987,672 $ 1,821,846 $ 3,727,424
$ 1,456,790 $ 1,333,977 $ 2,789,058
0.38% 0.50% 0.59%
1,700 $ 80,219 1,600 $ 75,500 3,500 $ 165,156
1,300 50,863 1,200 46,950 2,600 101,725
2,238 95,255 2,150 91,509 3,937 167,569
4,238 104,361 3,778 93,033 9,091 223,866
900 20,588 900 20,588 1,800 41,175
0 -- 0 -- 200 1,700
2,224 80,620 2,144 77,720 4,560 165,300
1,909 41,759 1,791 39,178 3,855 84,328
800 23,350 700 20,431 1,500 43,781
2,489 50,091 3,236 65,125 5,697 114,652
411 10,660 300 7,781 600 15,563
800 22,850 800 22,850 1,700 48,556
197 4,272 0 -- 0 --
200 8,525 200 8,525 400 17,050
1,017 35,659 946 33,169 1,995 69,950
2,841 88,604 2,301 71,762 5,015 156,405
3,243 164,785 2,991 151,980 5,821 295,780
1,061 27,851 1,087 28,534 1,908 50,085
1,053 44,489 978 41,321 2,200 92,950
1,559 61,386 1,487 58,551 3,570 140,569
900 38,700 900 38,700 1,800 77,400
1,100 36,575 1,000 33,250 2,100 69,825
800 89,200 800 89,200 1,700 189,550
------------ ------------ ------------
$ 1,180,662 $ 1,115,657 $ 2,332,935
$ 1,148,976 $ 1,113,713 $ 2,546,284
</TABLE>
105
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES
PERCENT OF NET ASSETS 0.13% 0.25%
Accustaff Inc 500 $ 6,250 1,400 $ 17,500
APAC Teleservices Inc 100 313 200 625
Apollo Group Inc 200 6,075 550 16,706
Cendant Corp+ 772 8,926 6,877 79,515
Concord EFS Inc 450 8,888 1,200 23,700
Dun & Bradstreet Corp 180 4,230 1,435 33,723
Ecolab Inc 124 3,449 1,006 27,979
Intl Technology Corp+ 0 -- 0 --
Kelly Services Inc Class A 106 2,716 220 5,638
Manpower Inc 400 8,150 1,100 22,413
Nielson (A C) Corp 73 1,465 453 9,088
Ogden Corp 101 2,329 625 14,414
Olsten Corp 291 1,710 525 3,084
Paychex Inc 727 27,626 1,990 75,620
Paymentech Inc 0 -- 100 1,144
Quintiles Transnational Corp 200 7,150 800 28,600
Reuters Group PLC ADR (UK) 654 31,147 2,213 105,394
Robert Half International
Inc 300 14,400 1,050 50,400
Rollins Inc 388 7,105 210 3,846
Security Dynamics Technology
Inc 0 -- 500 4,688
Teletech Holdings Inc 0 -- 100 838
------------ ------------
TOTAL BUSINESS SERVICES
- VALUE $ 141,929 $ 524,915
- COST $ 171,600 $ 651,609
CHEMICALS
PERCENT OF NET ASSETS 0.61% 1.29%
Air Products & Chemicals Inc 260 $ 7,946 1,896 $ 57,947
Airgas Inc 400 4,750 700 8,313
Albemarle Corp 313 5,262 260 4,371
Autoliv Inc 544 16,048 1,499 44,221
Betz Labs Inc 96 5,904 440 27,060
Cabot Corp 310 6,743 1,040 22,620
ChemFirst Inc 35 602 84 1,444
Clorox Co 94 9,065 808 77,922
Courtaulds PLC ADR (UK) 11,958 80,716 42,819 289,028
Crompton & Knowles Corp 450 6,581 1,040 15,210
Dow Chemical Co 341 26,598 1,789 139,542
Du Pont (E I) De Nemours 1,640 94,607 8,423 485,901
Eastman Chemical Co 124 6,394 646 33,309
Ethyl Corp 1,031 4,382 1,010 4,293
EVI Weatherford Inc+ 580 8,845 1,175 17,919
Ferro Corp 457 9,226 375 7,570
</TABLE>
106
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0.35% 0.44% 0.54%
2,700 $ 33,750 2,400 $ 30,000 5,100 $ 63,750
400 1,250 400 1,250 600 1,875
1,100 33,413 1,050 31,894 2,200 66,825
15,652 180,976 13,082 151,261 27,788 321,299
2,350 46,413 2,150 42,463 4,700 92,825
3,141 73,814 2,743 64,461 6,906 162,291
2,478 68,919 2,058 57,238 4,878 135,669
137 788 0 -- 0 --
389 9,968 319 8,174 885 22,678
2,200 44,825 2,100 42,788 4,400 89,650
918 18,417 707 14,184 1,530 30,696
1,284 29,612 1,206 27,813 2,544 58,671
1,117 6,562 988 5,805 2,216 13,019
3,706 140,828 3,560 135,280 7,568 287,584
0 -- 200 2,288 400 4,575
1,400 50,050 1,400 50,050 2,900 103,675
4,944 235,458 4,831 230,076 8,853 421,624
1,900 91,200 1,850 88,800 3,900 187,200
645 11,812 400 7,325 675 12,361
1,000 9,375 1,000 9,375 2,100 19,688
0 -- 0 -- 300 2,513
------------ ------------ ------------
$ 1,087,430 $ 1,000,525 $ 2,098,468
$ 1,346,206 $ 1,375,617 $ 2,915,749
1.92% 2.45% 2.96%
4,270 $ 130,502 4,052 $ 123,839 7,636 $ 233,375
1,400 16,625 1,400 16,625 3,000 35,625
612 10,289 432 7,263 986 16,577
2,869 84,636 2,733 80,624 5,810 171,395
827 50,860 707 43,481 1,605 98,708
1,972 42,891 1,832 39,846 3,990 86,783
314 5,397 224 3,850 348 5,981
1,810 174,552 1,597 154,011 4,205 405,520
95,146 642,236 93,553 631,483 171,045 1,154,554
1,985 29,031 1,870 27,349 4,030 58,939
4,111 320,658 3,778 294,684 7,497 584,766
19,601 1,130,732 17,308 998,454 42,640 2,459,794
1,415 72,961 1,375 70,898 2,585 133,289
2,029 8,623 1,308 5,559 2,530 10,753
2,204 33,611 2,055 31,339 5,105 77,851
654 13,203 496 10,013 1,222 24,669
</TABLE>
107
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
FMC Corp+ 2 $ 104 238 $ 12,317
Fuller (H B) Co 0 -- 0 --
Geon Co 0 -- 0 --
Georgia Gulf Corp 237 4,073 360 6,188
Goodrich (B F) Co 92 2,490 626 16,941
Grace (W R) Co+ 42 541 636 8,189
Great Lakes Chemical Corp 77 3,013 438 17,137
Hanna (M A) Co 280 3,483 650 8,084
Hercules Inc 92 2,352 778 19,888
IMC Global Inc 436 8,012 1,426 26,203
Imperial Chemical Industries
PLC ADR (UK) 959 40,877 3,641 155,198
International Flavor &
Fragrances 176 6,820 843 32,666
Johns Manville Corp 0 -- 400 5,475
Lawter International Inc 0 -- 0 --
Lubrizol Corp 329 7,526 860 19,673
Lyondell Petrochemical 176 3,795 580 12,506
Millennium Chemicals Inc 310 6,704 1,135 24,544
Mississippi Chemical Corp 11 138 28 352
Monsanto Co 840 45,938 4,481 245,055
Montedison Spa ADR (Italy) 4,254 42,274 15,207 151,120
Morton International Inc 238 5,296 1,072 23,852
Nalco Chemical Co 74 2,141 539 15,597
Octel Corp 19 292 134 2,060
OEA Inc 0 -- 0 --
Olin Corp 270 7,594 660 18,563
Praxair Inc 218 7,821 1,291 46,315
Premark International Inc 461 12,188 806 21,309
Rhone Poulenc Rorer Class A 1,934 88,963 7,055 324,530
Rohm & Haas Co 71 6,128 535 46,177
RPM Inc 472 6,166 1,358 17,739
Rubbermaid Inc 162 4,121 1,229 31,263
Schulman (A) Inc 403 6,398 420 6,668
Sigma-Aldrich Corp 128 3,552 798 22,145
Solutia Inc 543 12,184 1,646 36,932
Terra Industries Inc 500 2,500 400 2,000
Union Carbide Corp 145 5,827 1,071 43,041
USEC Inc 500 7,313 1,400 20,475
Valhi Inc 0 -- 0 --
Wellman Inc 363 4,152 280 3,203
------------ ------------
TOTAL CHEMICALS
- VALUE $ 654,445 $ 2,680,075
- COST $ 657,903 $ 2,470,830
</TABLE>
108
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
628 $ 32,499 681 $ 35,242 1,198 $ 61,997
225 10,688 0 -- 0 --
0 -- 0 -- 300 5,813
745 12,805 465 7,992 640 11,000
1,413 38,239 1,211 32,773 2,353 63,678
1,336 17,201 1,126 14,497 2,898 37,312
1,100 43,038 1,045 40,886 1,912 74,807
1,167 14,515 900 11,194 2,462 30,621
1,716 43,865 1,661 42,459 3,223 82,388
2,745 50,439 2,593 47,646 5,510 101,246
8,053 343,259 7,860 335,033 14,380 612,947
1,874 72,617 1,798 69,672 4,289 166,199
900 12,319 600 8,213 1,800 24,637
677 5,162 0 -- 0 --
1,617 36,989 1,442 32,986 3,200 73,200
1,117 24,085 1,092 23,546 2,245 48,408
2,112 45,672 1,946 42,082 4,246 91,820
105 1,319 74 930 116 1,457
10,379 567,602 9,124 498,969 22,600 1,235,938
33,629 334,188 33,130 329,229 60,617 602,381
2,376 52,866 2,344 52,154 4,114 91,537
1,188 34,378 1,152 33,336 2,099 60,740
300 4,613 261 4,013 478 7,349
308 2,387 223 1,728 0 --
1,278 35,944 1,258 35,381 2,660 74,813
2,940 105,473 2,692 96,576 5,200 186,550
1,533 40,529 1,496 39,550 3,150 83,278
15,736 723,856 15,506 713,276 28,375 1,305,249
1,160 100,123 1,033 89,161 1,972 170,208
2,597 33,923 2,507 32,748 5,385 70,342
2,751 69,979 2,610 66,392 4,926 125,305
686 10,890 616 9,779 1,185 18,812
1,849 51,310 1,719 47,702 3,169 87,940
3,197 71,733 3,020 67,761 6,439 144,475
700 3,500 500 2,500 1,100 5,500
2,504 100,630 2,179 87,569 3,954 158,901
2,800 40,950 2,600 38,025 5,600 81,900
0 -- 0 -- 300 3,731
495 5,662 365 4,175 845 9,665
------------ ------------ ------------
$ 5,962,054 $ 5,534,493 $ 11,570,723
$ 5,454,698 $ 5,082,758 $ 11,103,438
</TABLE>
109
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
COMMERCIAL SERVICES
PERCENT OF NET ASSETS 0.03% 0.04%
Nielson Media Research 60 $ 540 444 $ 3,996
ServiceMaster Co 900 18,844 2,550 53,391
Stewart Enterprises Inc
Class A 500 9,813 1,300 25,513
Valassis Communications Inc+ 100 2,981 300 8,944
------------ ------------
TOTAL COMMERCIAL SERVICES
- VALUE $ 32,178 $ 91,844
- COST $ 32,833 $ 95,801
COMPUTER SOFTWARE
PERCENT OF NET ASSETS 1.06% 2.18%
3Com Corp+ 590 $ 13,976 2,875 $ 68,102
Adobe Systems Inc 122 3,203 563 14,779
Altera Corp+ 420 12,233 1,220 35,533
America Online Inc 1,100 90,130 3,000 245,813
Anixter International Inc 500 8,125 500 8,125
At Home Corp Series A 100 2,825 300 8,550
Autodesk Inc 86 2,010 416 9,724
Automatic Data Processing 409 26,074 2,288 145,860
Bay Networks Inc+ 302 9,060 1,780 53,400
BEA Systems Inc 0 -- 100 1,525
BMC Software Inc 1,024 43,328 3,060 129,476
Broderbund Software Inc 200 2,788 200 2,788
Cadence Design Systems Inc 964 20,365 2,824 59,657
Cambridge Technology
Partners 100 3,244 400 13,000
Ceridian Corp+ 131 6,354 532 25,802
Choicepoint Inc 141 5,587 140 5,548
CIBER Inc 200 5,025 400 10,050
Citrix Systems Inc 200 11,525 550 31,694
Computer Associates
International Inc 764 20,628 4,167 112,509
Computer Sciences Corp 282 15,951 1,232 69,685
Compuware Corp 800 36,350 2,200 99,963
CSK Corp ADR (Japan) 1,916 34,009 7,500 133,125
DST Systems Inc 200 11,300 400 22,600
Electronic Arts Inc 300 11,438 800 30,500
Electronic Data Systems Corp 1,788 59,898 4,530 151,755
First Data Corp 563 11,647 3,600 74,475
Fiserv Inc 325 12,675 1,095 42,705
Gartner Group Inc Class A+ 200 4,625 700 16,188
HBO & Co 618 13,133 3,366 71,528
I2 Technologies Inc 0 -- 200 2,825
IMS Health Inc 180 9,900 1,232 67,760
Information Resources Inc+ 0 -- 0 --
Informix Corp 1,390 4,865 1,320 4,620
</TABLE>
110
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0.06% 0.07% 0.09%
1,023 $ 9,210 888 $ 7,995 2,120 $ 19,080
4,950 103,641 4,650 97,359 10,050 210,422
2,500 49,063 2,300 45,138 5,000 98,125
600 17,888 500 14,906 1,100 32,794
------------ ------------ ------------
$ 179,802 $ 165,398 $ 360,421
$ 188,279 $ 175,302 $ 377,380
3.22% 4.00% 5.29%
6,587 $ 156,030 5,778 $ 136,866 11,626 $ 275,391
1,223 32,104 1,247 32,734 2,304 60,480
2,436 70,948 2,296 66,871 4,880 142,130
5,700 467,044 5,400 442,463 11,600 950,475
500 8,125 700 11,375 1,200 19,500
500 14,250 500 14,250 1,100 31,350
971 22,697 759 17,742 1,817 42,472
5,279 336,536 4,654 296,693 12,148 774,435
4,071 122,130 3,864 115,920 7,210 216,300
200 3,050 200 3,050 400 6,100
5,764 243,889 5,504 232,888 11,760 497,595
200 2,788 200 2,788 500 6,969
5,350 113,019 5,090 107,526 10,930 230,896
700 22,750 600 19,500 1,400 45,500
1,316 63,826 1,169 56,697 3,133 151,950
364 14,424 267 10,580 484 19,179
800 20,100 800 20,100 1,700 42,713
1,050 60,506 1,050 60,506 2,200 126,775
9,686 261,522 8,303 224,181 22,060 595,620
2,752 155,660 2,496 141,180 5,032 284,623
4,100 186,294 3,900 177,206 8,400 381,675
17,900 317,725 17,111 303,720 32,802 582,236
800 45,200 800 45,200 1,700 96,050
1,500 57,188 1,500 57,188 3,100 118,188
9,091 304,549 8,876 297,346 19,000 636,500
8,248 170,631 7,509 155,342 14,049 290,639
2,099 81,842 1,993 77,727 4,242 165,438
1,300 30,063 1,200 27,750 2,500 57,813
7,598 161,458 6,582 139,868 17,006 361,378
300 4,238 200 2,825 400 5,650
2,870 157,850 2,465 135,575 6,360 349,800
403 3,929 0 -- 0 --
3,118 10,913 2,138 7,483 5,180 18,130
</TABLE>
111
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Intuit Inc 200 $ 6,838 700 $ 23,931
J.D. Edwards & Co 100 4,000 400 16,200
Keane Inc 300 12,600 1,000 42,000
LHS Group Inc 100 4,050 200 8,450
Mentor Graphics Corp 600 4,163 700 4,856
Microsoft Corp 3,538 339,426 18,322 1,757,766
MobileMedia Corp 300 150 200 100
National Data Corp 200 7,000 500 17,500
NEC Corp ADR (Japan) 1,183 42,292 4,563 163,127
Netscape Communications Corp 301 5,437 905 16,347
Network Associates Inc 625 20,156 1,875 60,469
Novell Inc+ 535 5,083 2,846 27,037
Objective Systems Integrator
C 0 -- 100 513
Oracle Systems Corp+ 1,406 28,032 7,418 147,896
Parametric Technology Corp 250 2,563 2,106 21,587
Peoplesoft Inc 800 22,500 2,300 64,688
Platinum Technology Inc 300 5,625 1,000 18,750
Renaissance Worldwide Inc 0 -- 400 4,000
Reynolds & Reynolds Co Class
A 346 4,368 920 11,615
Shiva Corp 300 1,294 300 1,294
Siebel Systems Inc 300 5,625 702 13,163
SPS Transaction Services Inc 0 -- 100 3,119
Sterling Commerce Inc+ 377 12,441 1,137 37,521
Sterling Software Inc 300 6,169 900 18,506
Storage Technology Corp 518 11,267 1,570 34,147
Stratus Computer Inc 161 4,045 310 7,789
Structural Dynamics Research 303 2,727 0 --
Sun Microsystems Inc+ 522 20,684 3,050 120,856
Sungard Data Systems Inc 400 12,675 1,300 41,194
Symantec Corp 378 6,190 800 13,100
Synopsys Inc 400 10,450 800 20,900
Total System Services Inc 450 7,256 550 8,869
Veritas Software Corp 200 8,975 600 26,925
Yahoo! Inc 200 13,600 300 20,700
------------ ------------
TOTAL COMPUTER SOFTWARE
- VALUE $ 1,149,952 $ 4,544,579
- COST $ 1,035,521 $ 3,591,221
COMPUTER SYSTEMS
PERCENT OF NET ASSETS 0.57% 1.53%
Adaptec Inc 500 $ 5,750 1,700 $ 19,550
Apple Computer Inc+ 235 7,329 1,090 33,994
Aztec Technology Partners
Inc 0 -- 184 968
Cabletron Systems Inc+ 257 1,799 1,334 9,338
Cisco Systems Inc 1,464 119,864 7,591 621,512
</TABLE>
112
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,300 $ 44,444 1,300 $ 44,444 2,700 $ 92,306
700 28,350 700 28,350 1,400 56,700
1,900 79,800 1,800 75,600 3,800 159,600
400 16,900 300 12,675 800 33,800
852 5,911 1,000 6,938 1,600 11,100
42,940 4,119,555 37,728 3,619,529 93,116 8,933,315
400 200 300 150 700 350
900 31,500 900 31,500 1,900 66,500
11,010 393,608 10,514 375,876 20,099 718,539
1,716 30,995 1,620 29,261 3,545 64,032
3,600 116,100 3,112 100,362 6,575 212,044
6,445 61,227 6,017 57,161 11,183 106,239
0 -- 0 -- 200 1,025
16,917 337,283 14,916 297,388 36,817 734,039
4,698 48,155 4,124 42,271 10,008 102,582
4,400 123,750 4,200 118,125 9,000 253,125
1,900 35,625 1,600 30,000 3,500 65,625
800 8,000 600 6,000 1,700 17,000
1,712 21,614 1,652 20,857 3,500 44,188
600 2,588 400 1,725 600 2,588
1,308 24,525 1,306 24,488 2,716 50,925
0 -- 0 -- 200 6,238
2,154 71,082 1,996 65,868 4,274 141,042
1,800 37,013 1,700 34,956 3,600 74,025
2,968 64,554 2,834 61,639 6,050 131,588
666 16,733 471 11,834 1,350 33,919
434 3,906 319 2,871 0 --
6,929 274,562 6,142 243,377 12,427 492,420
2,600 82,388 2,400 76,050 5,200 164,775
1,636 26,790 1,561 25,561 3,200 52,400
1,600 41,800 1,500 39,188 3,300 86,212
1,000 16,125 1,000 16,125 2,100 33,863
1,100 49,363 1,050 47,119 2,200 98,725
600 41,400 600 41,400 1,200 82,800
------------ ------------ ------------
$ 9,979,124 $ 9,029,828 $ 20,707,579
$ 7,659,998 $ 7,164,557 $ 17,053,866
2.39% 2.90% 3.86%
3,200 $ 36,800 2,900 $ 33,350 6,200 $ 71,300
2,447 76,316 2,328 72,604 4,244 132,360
384 2,016 323 1,694 729 3,829
3,094 21,658 2,697 18,879 4,926 34,482
17,853 1,461,713 15,647 1,281,098 38,701 3,168,643
</TABLE>
113
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Cognex Corp 0 $ -- 300 $ 4,200
Compaq Computer Corp 2,267 63,334 13,322 372,182
Comverse Technology Inc+ 200 7,700 600 23,100
Data General Corp+ 64 480 444 3,330
Dell Computer Corp 908 90,799 4,776 477,599
EMC Corp 638 28,830 3,800 171,713
Exabyte Corp+ 0 -- 0 --
Gateway 2000 Inc+ 200 9,463 700 33,119
Harris Corp 104 3,315 692 22,058
Hewlett-Packard Co 1,374 66,724 8,303 403,213
Intergraph Corp 54 341 367 2,317
International Business
Machine Corp 1,380 155,422 7,002 788,599
Iomega Corp 1,200 4,650 3,300 12,169
Komag Inc 400 1,100 600 1,650
NCR Corp 471 12,452 1,459 38,572
Quantum Corp 500 5,719 1,900 21,731
Rational Software Corp 0 -- 900 10,013
Seagate Technology Inc+ 397 6,948 1,979 34,633
Sequent Computer Systems 340 2,189 0 --
Shared Medical System Corp 42 2,242 155 8,273
Silicon Graphics Inc+ 284 2,574 1,549 14,038
Sybase Inc 700 4,813 700 4,813
Unisys Corp+ 280 5,023 1,892 33,938
Unova Inc+ 34 542 434 6,917
Wallace Computer Services
Inc 90 1,457 200 3,238
Western Digital Corp 700 5,775 1,300 10,725
Xylan Corp 100 1,525 100 1,525
------------ ------------
TOTAL COMPUTER SYSTEMS
- VALUE $ 618,159 $ 3,189,027
- COST $ 524,272 $ 2,042,454
CONTAINER & PACKAGING
PERCENT OF NET ASSETS 0.07% 0.15%
Ball Corp 54 $ 2,018 196 $ 7,326
Crown Cork & Seal Co 185 6,059 969 31,735
First Brands Corp 486 9,690 480 9,570
International Paper Co 422 15,614 2,516 93,092
Jefferson Smurfit Corp 700 7,875 800 9,000
Jefferson Smurfit Group ADR
(Ireland) 685 14,385 2,460 51,660
Sonoco Products 426 10,916 1,464 37,515
Temple-Inland Inc 49 2,196 485 21,734
</TABLE>
114
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
700 $ 9,800 600 $ 8,400 1,300 $ 18,200
30,437 850,334 26,894 751,350 54,036 1,509,630
1,200 46,200 1,100 42,350 2,400 92,400
1,001 7,508 772 5,790 1,522 11,415
11,204 1,120,399 9,822 982,199 24,388 2,438,799
8,688 392,589 7,594 343,154 20,046 905,829
340 1,828 0 -- 0 --
2,800 132,475 2,500 118,281 2,600 123,013
1,470 46,856 1,433 45,677 2,527 80,548
19,120 928,515 16,901 820,754 33,799 1,641,363
861 5,435 586 3,699 992 6,262
16,410 1,848,175 14,448 1,627,205 36,083 4,063,847
6,100 22,494 6,000 22,125 12,900 47,569
1,100 3,025 800 2,200 1,100 3,025
2,781 73,523 2,664 70,430 5,725 151,355
3,580 40,946 2,970 33,969 6,300 72,056
1,800 20,025 1,600 17,800 3,200 35,600
4,413 77,228 4,238 74,165 7,966 139,405
471 3,032 341 2,195 0 --
461 24,606 364 19,429 904 48,251
3,639 32,978 3,278 29,707 5,761 52,209
1,400 9,625 1,200 8,250 2,500 17,188
4,511 80,916 4,000 71,750 8,191 146,926
1,058 16,862 818 13,037 1,661 26,472
300 4,856 210 3,399 400 6,475
2,500 20,625 2,400 19,800 5,100 42,075
0 -- 100 1,525 200 3,050
------------ ------------ ------------
$ 7,419,358 $ 6,546,265 $ 15,093,576
$ 4,665,530 $ 4,135,490 $ 10,417,781
0.22% 0.29% 0.32%
642 $ 23,995 538 $ 20,108 904 $ 33,787
2,329 76,275 2,055 67,301 4,137 135,487
694 13,837 704 14,036 1,060 21,134
5,688 210,456 5,233 193,621 9,964 368,668
1,600 18,000 1,600 18,000 3,300 37,125
5,490 115,290 5,337 112,077 9,735 204,435
2,780 71,238 2,684 68,778 5,720 146,575
1,041 46,650 959 42,975 1,835 82,231
</TABLE>
115
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Tenneco Inc 278 $ 8,809 1,340 $ 42,461
Tupperware Corp 63 1,189 500 9,438
------------ ------------
TOTAL CONTAINER & PACKAGING
- VALUE $ 78,751 $ 313,531
- COST $ 97,723 $ 407,240
ELECTRICAL EQUIPMENT
PERCENT OF NET ASSETS 0.48% 1.24%
Aeroquip-Vickers Inc 52 $ 2,096 244 $ 9,836
Alliance Semiconductor Corp 0 -- 0 --
Arrow Electronics Inc 386 5,066 1,192 15,645
Avnet Inc 230 10,868 550 25,988
FORE Systems Inc 400 6,900 1,200 20,700
General Electric Co 4,683 374,639 24,282 1,942,559
Grainger (W W) Inc 82 3,213 794 31,115
Handleman Co 59 380 132 850
Hitachi Ltd ADR (Japan) 732 36,143 2,984 147,335
Hubbell Inc Class B 332 11,869 866 30,960
Masco Corp 512 11,776 2,768 63,664
Motorola Inc 826 35,570 4,801 206,743
National Service Industries
Inc 39 1,453 342 12,740
Raychem Corp 54 1,566 709 20,561
Symbol Technologies Inc 285 11,685 672 27,552
Thomas & Betts Corp 68 2,316 454 15,464
------------ ------------
TOTAL ELECTRICAL EQUIPMENT
- VALUE $ 515,540 $ 2,571,712
- COST $ 457,420 $ 1,899,324
ELECTRONICS
PERCENT OF NET ASSETS 0.84% 1.82%
Advanced Micro Devices+ 200 $ 2,638 1,086 $ 14,322
American Power Conversion 300 8,100 1,180 31,860
AMP Inc 289 10,314 1,720 61,383
Analog Devices Inc+ 801 11,264 2,326 32,709
Applied Materials Inc 515 12,650 2,946 72,361
Atmel Corp 662 3,993 1,360 8,203
C-Cube Microsystems Inc 100 1,481 300 4,444
Canon Inc ADR (Japan) 1,390 28,495 5,530 113,365
CBS Corp 1,010 26,260 5,777 150,202
Cirrus Logic Inc 634 3,844 780 4,729
Commscope Inc 50 662 346 4,585
Cypress Semiconductor Corp 800 4,900 840 5,145
EG&G Inc 25 586 353 8,273
Electronics for Imaging Inc 400 5,850 500 7,313
Emerson Electric Co 655 37,335 3,378 192,546
</TABLE>
116
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,053 $ 96,742 2,947 $ 93,383 5,642 $ 178,781
1,136 21,442 1,009 19,045 2,302 43,450
------------ ------------ ------------
$ 693,925 $ 649,324 $ 1,251,673
$ 887,776 $ 829,026 $ 1,704,151
1.92% 2.35% 3.18%
552 $ 22,253 433 $ 17,455 996 $ 40,151
0 -- 0 -- 250 625
2,298 30,161 2,220 29,138 4,750 62,344
1,014 47,912 959 45,313 2,015 95,209
2,300 39,675 2,200 37,950 4,700 81,075
56,704 4,536,319 49,893 3,991,439 123,137 9,850,959
1,812 71,008 1,770 69,362 3,286 128,770
467 3,006 307 1,976 521 3,354
7,158 353,426 6,814 336,441 13,076 645,628
1,508 53,911 1,434 51,266 3,202 114,472
6,228 143,244 5,834 134,182 10,842 249,366
11,057 476,142 10,008 430,969 19,599 843,982
771 28,720 774 28,831 1,319 49,133
1,623 47,067 1,366 39,614 3,262 94,598
1,377 56,457 1,332 54,612 2,787 114,267
1,010 34,403 973 33,143 1,754 59,746
------------ ------------ ------------
$ 5,943,704 $ 5,301,691 $ 12,433,679
$ 4,394,557 $ 4,053,513 $ 9,890,493
2.80% 3.51% 4.31%
2,577 $ 33,984 2,422 $ 31,940 4,484 $ 59,133
2,194 59,238 2,109 56,943 4,460 120,420
4,069 145,212 3,870 138,111 7,163 255,630
4,438 62,409 4,161 58,514 8,929 125,564
6,712 164,864 5,919 145,385 12,020 295,241
2,666 16,079 2,688 16,212 5,626 33,932
300 4,444 400 5,925 700 10,369
14,245 292,023 13,605 278,903 26,020 533,410
13,174 342,524 12,122 315,172 23,406 608,556
1,496 9,070 1,066 6,463 1,510 9,154
792 10,494 212 8,109 1,552 20,564
1,364 8,354 1,424 8,722 3,170 19,416
972 22,781 723 16,945 1,467 34,383
1,000 14,625 1,000 14,625 2,000 29,250
7,695 438,615 6,766 385,662 14,523 827,811
</TABLE>
117
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Etec Systems Inc 0 $ -- 200 $ 4,825
Fuji Photo Film Co Ltd ADR
(Japan) 975 31,688 3,270 106,275
General Instrument Corp+ 0 -- 0 --
General Motors Class H 500 18,063 1,500 54,187
General Semiconductor Inc 37 238 260 1,674
General Signal Corp 35 1,286 341 12,532
Honeywell Inc 184 11,500 1,039 64,938
Imation Corp 276 4,330 516 8,095
Input/Output Inc 500 4,875 500 4,875
Integrated Device Technology
Inc 700 3,216 800 3,675
Intel Corp 2,401 170,920 12,601 897,033
International Rectifier Corp 500 2,125 500 2,125
Jabil Circuit 0 -- 200 4,700
Johnson Controls Inc 96 4,110 700 29,969
KLA Instruments Corp+ 104 2,210 736 15,640
Kyocera Corp ADR (Japan) 430 37,571 1,519 132,723
Lam Research Corp 300 3,281 300 3,281
Lattice Semiconductor 100 2,400 300 7,219
Lexmark International Group
Cl 300 18,169 800 48,450
Linear Technology Corp 386 18,142 1,120 52,640
Litton Industries Inc 201 9,648 490 23,520
LSI Logic Corp+ 128 1,568 1,164 14,259
Macromedia Inc 400 5,025 400 5,025
Matsushita Electric
Industries Co 257 35,289 1,033 141,844
Maxim Integrated Products
Inc 600 16,500 1,800 49,500
MEMC Electronic Materials
Inc 300 1,613 300 1,613
Microchip Technology Inc 400 7,325 800 14,650
Micron Electronics Inc 0 -- 200 2,350
Micron Technology Inc+ 335 7,621 1,712 38,948
Molex Inc 316 7,663 596 14,453
Molex Inc Class A 312 7,254 978 22,739
National Semiconductor+ 266 2,427 1,312 11,972
Novellus System Inc 200 5,325 500 13,313
Perkin-Elmer Corp 29 1,678 406 23,497
Philips Electronics NV ADR
(Netherlands) 443 26,552 1,747 104,711
Pioneer Electronics Corp 2,192 36,168 8,617 142,181
Pitney Bowes Inc 416 20,644 2,046 101,533
Pixar Inc 0 -- 100 2,881
Policy Management Systems
Corp 496 20,708 340 14,195
Premier Farnell PLC ADR (UK) 2,249 15,462 8,119 55,818
Rambus Inc 0 -- 100 4,775
Raytheon Co Class B 384 17,520 2,773 126,518
Read-Rite Corp 400 2,200 500 2,750
Sanmina Corp 200 6,125 400 12,350
</TABLE>
118
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
400 $ 9,650 300 $ 7,238 700 $ 16,888
9,234 300,105 8,836 287,170 16,900 549,250
2,800 55,650 2,400 47,700 0 --
2,900 104,763 2,800 101,150 5,900 213,137
594 3,824 459 2,955 1,164 7,493
861 31,642 799 29,363 1,598 58,727
2,289 143,063 2,152 134,500 4,172 260,750
702 11,013 731 11,468 1,617 25,367
1,000 9,750 700 6,825 1,100 10,725
1,700 7,809 800 3,675 2,100 9,647
29,506 2,100,457 25,925 1,845,535 64,112 4,563,972
1,000 4,250 700 2,975 1,100 4,675
400 9,400 300 7,050 600 14,100
1,581 67,687 1,435 61,436 2,750 117,734
1,684 35,785 1,460 31,025 2,628 55,845
3,631 317,259 3,505 306,249 6,702 585,587
500 5,469 500 5,469 1,200 13,125
600 14,438 500 12,031 1,300 31,281
1,600 96,900 1,500 90,844 3,300 199,856
2,100 98,700 2,010 94,470 4,350 204,450
908 43,584 903 43,344 1,979 94,992
2,742 33,590 2,441 29,902 4,460 54,635
700 8,794 500 6,281 900 11,306
2,561 351,657 2,371 325,568 4,616 633,835
3,400 93,500 3,200 88,000 6,800 187,000
400 2,150 400 2,150 800 4,300
1,400 25,638 1,350 24,722 2,900 53,106
400 4,700 300 3,525 500 5,875
3,911 88,975 3,635 82,696 6,977 158,727
1,140 27,645 1,118 27,112 2,283 55,363
1,845 42,896 1,788 41,571 3,776 87,792
3,284 29,967 2,844 25,952 5,246 47,870
900 23,963 900 23,963 1,900 50,588
889 51,451 743 43,001 1,887 109,210
3,781 226,624 3,697 221,589 6,766 405,537
20,604 339,966 19,837 327,310 37,956 626,274
4,888 242,567 4,164 206,638 10,374 514,810
300 8,644 200 5,763 400 11,525
606 25,301 516 21,543 880 36,740
18,099 124,431 17,484 120,203 32,610 224,194
300 14,325 200 9,550 500 23,875
6,200 282,875 5,723 261,112 11,151 508,764
600 3,300 800 4,400 1,700 9,350
800 24,700 800 24,700 1,600 49,400
</TABLE>
119
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
SCI Systems Inc+ 200 $ 4,588 800 $ 18,350
Sensormatic Electronics 535 4,079 870 6,634
Solectron Corp+ 500 20,656 1,500 61,969
SONY Corp ADR (Japan) 468 33,082 1,822 128,793
Tektronix Inc 3 46 376 5,711
Teradyne Inc 376 6,533 1,220 21,198
Texas Instruments Inc 560 26,705 3,097 147,688
Thermo Instrument Systems
Inc 250 3,813 256 3,904
Vishay Intertechnology Inc 463 4,862 468 4,914
Vitesse Semiconductor Corp 300 8,081 900 24,413
VLSI Technology Inc 200 1,813 400 3,625
Xerox Corp 485 42,589 2,441 214,350
Xilinx Inc 247 7,534 1,000 30,500
Zenith Electronics Corp 44 17 89 35
------------ ------------
TOTAL ELECTRONICS
- VALUE $ 911,209 $ 3,783,775
- COST $ 1,059,109 $ 3,590,015
ENERGY & RELATED
PERCENT OF NET ASSETS 1.09% 2.79%
AGL Resources Inc 538 $ 9,852 440 $ 8,058
Amerada Hess Corp 142 6,976 750 36,844
Amoco Corp 0 -- 7,700 348,905
Anadarko Petroleum Corp 182 5,233 950 27,313
Apache Corp 166 3,797 758 17,339
Ashland Inc 109 4,966 606 27,611
Atlantic Richfield Corp 423 24,534 2,575 149,350
British Petroleum Co PLC ADR
(UK) 1,078 78,828 3,900 285,188
Burlington Resources Inc 284 8,396 1,426 42,156
Chesapeake Energy Corp 0 -- 400 625
Chevron Corp 920 68,137 5,255 389,197
Coastal Corp 324 8,424 1,708 44,408
Columbia Gas System Inc 62 3,060 677 33,656
Consolidated Natural Gas Co 142 6,221 751 32,903
Cooper Cameron Corp 200 4,250 700 14,875
Devon Energy Corp 0 -- 200 5,288
Diamond Offshore Drilling
Inc 400 8,350 900 18,788
Dresser Industries Inc 214 5,470 1,399 35,762
Dynegy Inc 0 -- 0 --
Eastern Enterprises 39 1,543 200 7,913
EEX Corp 137 608 1,213 5,383
ELF Aquitaine ADR (France) 1,306 63,830 4,812 235,187
Enron Corp 428 18,110 2,623 110,986
Enron Oil & Gas Co 300 3,900 900 11,700
Exxon Corp 3,357 219,673 19,708 1,289,641
</TABLE>
120
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,500 $ 34,406 1,400 $ 32,113 3,100 $ 71,106
1,723 13,138 1,048 7,991 1,885 14,373
2,900 119,806 2,800 115,675 6,000 247,875
4,240 299,715 4,083 288,617 7,816 552,494
924 14,033 808 12,272 1,874 28,461
2,290 39,789 2,200 38,225 4,650 80,794
7,181 342,444 6,345 302,577 12,757 608,349
450 6,863 312 4,758 921 14,045
926 9,723 809 8,495 1,731 18,176
1,700 46,113 1,600 43,400 3,400 92,225
1,000 9,063 800 7,250 1,700 15,406
5,710 501,409 5,027 441,433 12,925 1,134,977
1,859 56,700 1,774 54,107 3,820 116,510
279 109 230 90 367 143
------------ ------------ ------------
$ 8,666,884 $ 7,904,357 $ 16,885,444
$ 8,087,262 $ 7,634,159 $ 17,180,886
4.24% 5.38% 6.00%
798 $ 14,613 558 $ 10,218 520 $ 9,523
1,724 84,692 1,646 80,860 2,978 146,294
17,692 801,669 16,084 728,806 31,096 1,409,037
2,222 63,883 1,978 56,868 3,812 109,595
1,841 42,113 1,648 37,698 3,074 70,318
1,405 64,015 1,295 59,003 2,404 109,532
5,892 341,736 5,352 310,416 10,520 610,160
8,587 627,924 8,382 612,934 15,237 1,114,206
3,318 98,088 3,054 90,284 5,682 167,974
1,000 1,563 500 781 1,000 1,563
12,033 891,194 10,961 811,798 21,189 1,569,309
3,852 100,152 3,620 94,120 6,990 181,740
1,499 74,575 1,485 73,879 2,736 136,116
1,725 75,577 1,641 71,896 3,113 136,388
1,300 27,625 1,200 25,500 2,600 55,250
500 13,219 400 10,575 900 23,794
1,800 37,575 1,700 35,488 3,600 75,150
3,238 82,771 3,027 77,378 5,774 147,598
1,600 15,300 0 -- 0 --
426 16,854 382 15,113 686 27,140
1,934 8,582 2,344 10,402 4,867 21,597
10,829 529,267 10,649 520,470 19,403 948,322
6,085 257,472 5,496 232,550 10,835 458,456
1,700 22,100 1,700 22,100 3,500 45,500
45,066 2,949,005 41,126 2,691,182 79,342 5,191,941
</TABLE>
121
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Freeport-McMoRan Sulphur Inc 74 $ 657 76 $ 675
Global Marine Inc 700 6,563 2,100 19,688
Halliburton Co 461 12,245 2,021 53,683
Helmerich & Payne Inc 90 1,463 420 6,825
Indiana Energy Inc 0 -- 0 --
Kerr-McGee Corp 43 1,661 348 13,442
MarketSpan Corp 0 -- 0 --
MCN Corp 0 -- 0 --
Mobil Corp 1,029 71,129 6,320 436,869
Murphy Oil Corp 293 10,347 580 20,481
Nabors Industries Inc 600 7,088 1,300 15,356
National Fuel Gas Co 0 -- 0 --
NICOR Inc 44 1,708 350 13,584
Noble Affiliates Inc 338 7,816 730 16,881
Noble Drilling Corp 600 6,600 1,800 19,800
Occidental Petroleum Corp 600 11,100 2,960 54,760
Ocean Energy Inc 500 4,438 1,620 14,378
ONEOK Inc 49 1,473 240 7,215
Oryx Energy Co+ 199 2,475 842 10,472
Parker Drilling Co 0 -- 0 --
Pennzoil Co 32 1,144 338 12,084
Peoples Energy Corp 63 2,087 260 8,613
Phillips Petroleum Co 319 13,019 2,079 84,849
Pioneer Natural Resources
C.L.C. 376 5,523 1,297 19,050
Pogo Producing Co 300 3,581 300 3,581
Pride International Inc 0 -- 400 3,175
Quaker State Corp 0 -- 0 --
Questar Corp 454 7,378 1,080 17,550
Reading & Bates Falcon Corp 472 4,248 1,426 12,834
Repsol SA 637 27,988 2,500 109,844
Rowan Co Inc+ 126 1,166 704 6,512
Royal Dutch Petroleum Corp 3,356 133,400 12,068 479,702
Santa Fe Energy Resources
Inc 83 623 809 6,068
Schlumberger Ltd 675 29,573 3,780 165,611
Seagull Energy Corp 391 3,470 610 5,414
Services (B J) Co 400 5,050 1,000 12,625
Sonat Offshore Drilling Co 132 3,572 936 25,331
Sun Co Inc 115 3,802 758 25,061
Texaco Inc 742 41,227 4,386 243,697
Tosco Corp 671 14,762 1,940 42,680
Total Compagnie Francaise
des Petroles SA ADR
(France) 1,828 87,857 6,475 311,205
Transocean Offshore Inc 400 9,825 1,200 29,475
TransTexas Gas Corp 0 -- 0 --
</TABLE>
122
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
144 $ 1,278 75 $ 666 143 $ 1,269
4,015 37,641 3,800 35,625 8,200 76,875
4,776 126,63 4,214 111,934 10,650 282,891
920 14,950 840 13,650 1,620 26,325
352 10,098 0 -- 0 --
862 33,295 784 30,282 1,574 60,796
719 19,683 0 -- 0 --
930 16,333 0 -- 0 --
14,426 997,196 13,173 910,583 25,365 1,753,355
1,077 38,032 997 35,207 2,270 80,159
2,385 28,173 2,329 27,511 5,000 59,063
582 23,935 0 -- 0 --
909 35,281 801 31,089 1,509 58,568
1,373 31,751 1,258 29,091 2,820 65,212
3,400 37,400 3,300 36,300 7,000 77,000
6,727 124,450 5,879 108,761 11,085 205,072
2,610 23,164 2,380 21,123 5,190 46,061
603 18,128 507 15,242 920 27,658
1,889 23,494 1,713 21,305 4,063 50,534
844 3,376 619 2,476 0 --
932 33,319 887 31,710 1,484 53,053
674 22,326 582 19,279 1,141 37,796
4,846 197,777 4,375 178,555 8,604 351,151
2,434 35,749 2,286 33,576 4,962 72,879
600 7,163 500 5,969 1,100 13,131
800 6,350 800 6,350 1,700 13,494
419 5,264 299 3,756 0 --
2,020 32,825 1,880 30,550 4,060 65,975
2,816 25,344 2,698 24,282 5,742 51,678
5,425 238,361 5,350 235,066 9,750 428,391
1,764 16,317 1,472 13,616 3,279 30,331
26,752 1,063,391 26,287 1,044,907 48,174 1,914,916
1,875 14,063 1,239 9,293 2,826 21,195
8,694 380,906 7,646 334,990 19,746 865,122
1,248 11,076 1,103 9,789 2,275 20,191
1,900 23,988 1,900 23,988 4,000 50,500
1,960 53,043 1,874 50,715 3,526 95,422
1,813 59,942 1,626 53,760 3,087 102,064
9,972 554,069 9,133 507,452 17,503 972,510
3,667 80,674 3,477 76,494 7,435 163,570
14,304 687,486 14,078 676,624 25,719 1,236,118
2,200 54,038 2,100 51,581 4,500 110,531
0 -- 0 -- 300 1,144
</TABLE>
123
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ultramar Diamond Shamrock
Corp 410 $ 9,481 1,255 $ 29,022
Union Pacific Resources
Group 332 2,843 2,058 17,622
Unocal Corp 384 12,024 1,991 62,343
USX--Marathon Group 415 10,790 2,320 60,320
Utilicorp United Inc 0 -- 0 --
Valero Energy Corp 180 3,218 770 13,764
Vastar Resources Inc 200 7,600 200 7,600
Washington Gas & Light 464 11,020 360 8,550
Williams Co Inc 610 14,030 3,428 78,844
Witco Corp 316 6,636 780 16,380
------------ ------------
TOTAL ENERGY & RELATED
- VALUE $ 1,177,858 $ 5,802,591
- COST $ 1,212,302 $ 5,415,656
ENGINEERING & CONSTRUCTION
PERCENT OF NET ASSETS 0.04% 0.07%
Armstrong World Industries
Inc 102 $ 4,896 294 $ 14,112
Centex Corp 114 4,033 498 17,617
Clayton Homes Inc 626 9,664 1,283 19,806
Fleetwood Enterprises Inc 32 1,070 328 10,968
Fluor Corp 123 4,866 649 25,676
Foster Wheeler Corp 102 1,256 341 4,199
Granite Construction Inc 0 -- 0 --
Kaufman & Broad Home Corp 59 1,261 308 6,584
Pulte Corp 100 2,888 374 10,799
Rouse Co 400 11,500 900 25,875
------------ ------------
TOTAL ENGINEERING &
CONSTRUCTION
- VALUE $ 41,434 $ 135,636
- COST $ 35,963 $ 143,121
ENTERTAINMENT & LEISURE
PERCENT OF NET ASSETS 0.19% 0.52%
AMF Bowling Inc 0 $ -- 200 $ 2,413
Ascent Entertainment Group 249 1,930 293 2,271
Bally Total Fitness Holding
Corp 26 393 76 1,159
Boyd Gaming Corp 0 -- 200 800
Brunswick Corp 196 2,928 835 12,473
Callaway Golf Co 296 2,942 980 9,739
Circus Circus Entertainment
Inc 629 6,447 1,230 12,607
Coleman Co Inc 0 -- 200 2,025
Disney (Walt) Co 2,769 75,973 16,516 453,157
Gaylord Entertainment Co
Class A 105 2,802 105 2,802
Grand Casinos Inc 400 3,500 400 3,500
Harrah's Entertainment Inc+ 108 1,559 797 11,507
</TABLE>
124
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,443 $ 56,494 2,336 $ 54,020 4,925 $ 113,891
4,633 39,670 4,322 37,007 8,093 69,296
4,385 137,305 4,066 127,317 8,144 255,009
5,339 138,814 4,866 126,516 9,357 243,282
675 23,245 0 -- 0 --
1,464 26,169 1,384 24,739 2,860 51,123
500 19,000 400 15,200 900 34,200
624 14,820 454 10,783 440 10,450
7,749 178,227 7,129 163,967 13,847 318,481
1,552 32,592 1,522 31,962 3,195 67,095
------------ ------------ ------------
$ 13,155,892 $ 12,124,977 $ 23,471,330
$ 12,001,094 $ 11,175,493 $ 23,901,443
0.10% 0.12% 0.13%
738 $ 35,424 689 $ 33,072 1,303 $ 62,544
1,090 38,559 1,104 39,054 1,812 64,100
2,445 37,745 2,320 35,815 4,907 75,752
713 23,841 670 22,403 1,165 38,955
1,539 60,887 1,486 58,790 2,728 107,926
732 9,013 683 8,409 1,254 15,440
405 9,619 0 -- 0 --
734 15,689 647 13,830 1,189 25,415
786 22,696 742 21,425 1,266 36,556
1,700 48,875 1,600 46,000 3,400 97,750
------------ ------------ ------------
$ 302,348 $ 278,798 $ 524,438
$ 317,874 $ 292,038 $ 597,603
0.79% 0.99% 1.13%
400 $ 4,825 300 $ 3,619 500 $ 6,031
400 3,100 397 3,077 679 5,262
185 2,821 116 1,769 223 3,401
0 -- 300 1,200 700 2,800
1,962 29,307 1,660 24,796 3,140 46,904
1,858 18,464 1,756 17,450 3,816 37,922
2,322 23,801 2,262 23,186 4,795 49,149
0 -- 0 -- 200 2,025
37,698 1,034,338 34,404 943,959 66,483 1,824,126
140 3,736 171 4,564 250 6,672
700 6,125 500 4,375 900 7,875
1,832 26,450 1,702 24,573 3,218 46,460
</TABLE>
125
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Hasbro Inc 198 $ 6,200 1,105 $ 34,600
International Game
Technology Inc 497 9,629 1,600 31,000
Mattel Inc 371 12,011 2,214 71,678
Metro-Goldwyn-Mayer Inc 0 -- 200 3,438
MGM Grand Inc 100 2,869 100 2,869
Mirage Resorts Inc+ 297 4,418 1,376 20,468
Navigant International Inc 0 -- 92 547
Polaroid Corp 34 956 337 9,478
Spelling Entertainment Group
I 0 -- 0 --
Tiffany & Co 126 4,686 400 14,875
Time Warner Inc 787 63,255 4,798 385,638
Topp Inc 512 1,280 0 --
------------ ------------
TOTAL ENTERTAINMENT &
LEISURE
- VALUE $ 203,778 $ 1,089,044
- COST $ 217,409 $ 950,629
ENVIRONMENTAL CONTROL
PERCENT OF NET ASSETS 0.11% 0.19%
Allied Waste Industries Inc 500 $ 9,500 1,400 $ 26,600
Browning-Ferris Industries
Inc 247 8,028 1,523 49,498
Mid American Waste Systems
Inc+ 0 -- 0 --
Republic Industries Inc 1,800 31,838 5,100 90,206
Safety-Kleen Corp 349 1,025 1,727 5,073
U.S. Filter Corp+ 700 12,600 2,200 39,600
Waste Management Inc+ 1,337 58,995 4,179 184,398
------------ ------------
TOTAL ENVIRONMENTAL CONTROL
- VALUE $ 121,986 $ 395,375
- COST $ 131,804 $ 447,676
FOOD & RELATED
PERCENT OF NET ASSETS 0.94% 1.87%
Albertson's Inc 305 $ 15,422 1,980 $ 100,114
American Stores Co 461 13,369 2,187 63,423
Archer-Daniels-Midland Co 945 14,175 4,834 72,517
Bestfoods 486 24,391 2,164 108,606
Bob Evans Farms Inc 468 8,629 360 6,638
Boston Chicken Inc 600 581 500 484
Brinker International Inc 1,056 18,084 990 16,954
Brown-Forman Corp Class B 74 4,440 543 32,580
Campbell Soup Co 700 35,263 3,429 172,736
CKE Restaurants Inc 200 6,200 400 12,400
ConAgra Inc 888 21,978 3,727 92,243
Corn Product International
Inc 60 1,421 295 6,988
Cracker Barrel Old Country
Store Inc 249 6,085 910 22,238
Darden Restaurants Inc 160 2,480 1,129 17,499
</TABLE>
126
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,523 $ 79,001 2,312 $ 72,395 4,261 $ 133,423
3,072 59,520 2,917 56,517 6,145 119,059
5,113 165,533 4,665 151,029 11,763 380,827
300 5,156 200 3,438 400 6,875
200 5,738 200 5,738 450 12,909
3,280 48,790 3,129 46,544 5,674 84,401
192 1,140 161 958 365 2,165
906 25,481 747 21,009 1,402 39,431
0 -- 0 -- 400 2,400
880 32,725 860 31,981 1,700 63,219
10,919 877,615 9,887 794,667 18,946 1,522,784
722 1,805 527 1,318 0 --
------------ ------------ ------------
$ 2,455,471 $ 2,238,162 $ 4,406,120
$ 2,063,519 $ 1,846,307 $ 3,896,291
0.27% 0.34% 0.41%
2,700 $ 51,300 2,600 $ 49,400 5,500 $ 104,500
3,388 110,110 3,051 99,158 6,169 200,493
372 163 0 -- 0 --
9,600 169,800 9,100 160,956 19,600 346,675
3,949 11,600 3,467 10,184 5,948 17,472
4,100 73,800 3,600 64,800 7,700 138,600
9,630 424,924 8,683 383,137 18,104 798,839
------------ ------------ ------------
$ 841,697 $ 767,635 $ 1,606,579
$ 953,484 $ 889,560 $ 1,836,856
2.77% 3.52% 4.36%
4,530 $ 229,048 4,138 $ 209,228 7,984 $ 403,691
5,044 146,276 4,745 137,605 8,930 258,970
10,927 163,910 10,433 156,492 19,432 291,485
5,070 254,451 4,466 224,137 11,544 579,365
752 13,865 472 8,703 1,250 23,047
700 678 700 678 1,100 1,066
1,871 32,041 1,171 20,053 2,130 36,476
1,255 75,300 1,245 74,700 2,195 131,700
7,922 399,071 6,971 351,164 18,429 928,361
800 24,800 800 24,800 1,700 52,700
8,272 204,732 7,653 189,412 18,871 467,057
696 16,487 569 13,478 1,368 32,405
1,711 41,813 1,571 38,391 3,325 81,255
2,679 41,525 2,566 39,773 4,853 75,221
</TABLE>
127
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Dave & Buster's Inc 0 $ -- 0 $ --
Dean Foods Co 224 9,856 540 23,760
DEKALB Genetics Corp Class B 100 8,663 300 25,988
Dole Food Inc 246 10,639 710 30,708
Earthgrains Co 56 1,540 292 8,030
Fleming Co Inc 2 24 291 3,474
Flowers Industries Inc 509 9,067 1,220 21,731
Food Lion Inc Class A 1,100 11,344 2,300 23,719
Food Lion Inc Class B 1,400 13,913 2,600 25,838
General Mills Inc 210 13,742 1,232 80,619
General Nutrition Co Inc+ 400 5,325 1,200 15,975
Great Atlantic & Pacific Tea
Co 69 1,643 293 6,977
Hannaford Brothers Co 236 9,809 460 19,119
Heinz (H J) Co 490 26,123 2,738 145,970
Hershey Foods Corp 214 14,980 1,055 73,850
Hormel Foods Corp 200 5,513 700 19,294
Host Marriott Services Corp 240 2,370 240 2,370
IBP Inc 432 7,155 1,320 21,863
Imperial Holly Inc 0 -- 0 --
International Home Foods Inc 0 -- 400 6,700
International Multifoods
Corp 0 -- 0 --
Interstate Bakeries Corp 200 5,213 600 15,638
Keebler Foods Co+ 200 5,163 500 12,906
Kellogg Co 556 16,958 3,059 93,300
Koninklijke AholdNV ADR
(Netherlands) 2,565 72,140 9,208 258,975
Kroger Co+ 341 15,345 1,901 85,545
Lancaster Colony Corp 207 5,977 490 14,149
Lance Inc 0 -- 0 --
Lone Star Steakhouse &
Saloon 300 2,550 400 3,400
Luby's Cafeteria Inc 45 686 219 3,340
McCormick & Co Inc 288 8,370 800 23,250
McDonald's Corp 969 54,325 5,490 307,783
Michael Foods Inc 0 -- 0 --
Nabisco Holdings Corp Class
A 200 6,613 100 3,306
NPC International Inc 0 -- 0 --
Outback Steakhouse Inc 200 6,013 500 15,031
Pioneer Hi Bred
International Inc 405 13,669 1,437 48,499
Planet Hollywood
International 0 -- 200 950
Quaker Oats Co 142 7,544 1,073 57,003
Ralston-Purina Group 465 12,235 2,388 62,834
Richfood Holdings Inc 0 -- 500 10,281
RJR Nabisco Holdings Corp 1,370 29,712 3,943 85,514
Ruby Tuesday Inc 384 5,400 200 2,813
Ryans Family Steak House 119 1,212 516 5,257
</TABLE>
128
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
103 $ 1,597 0 $ -- 0 $ --
1,107 48,708 1,037 45,628 2,205 97,020
500 43,313 500 43,313 1,000 86,625
1,308 56,571 1,168 50,516 2,625 113,531
668 18,370 536 14,740 1,224 33,660
801 9,562 589 7,031 1,206 14,397
2,318 41,289 2,236 39,829 4,715 83,986
4,400 45,375 4,200 43,313 10,000 99,375
5,000 49,688 4,700 46,706 8,900 91,781
2,730 178,644 2,497 163,397 6,422 420,240
2,200 29,288 2,100 27,956 4,500 59,906
732 17,431 612 14,573 1,177 28,027
845 35,120 765 31,795 1,740 72,319
6,320 336,935 5,602 298,657 14,766 787,212
2,453 171,710 2,219 155,330 5,798 405,860
1,200 33,075 1,200 33,075 2,500 68,906
380 3,753 320 3,160 680 6,715
2,452 40,611 2,342 38,789 5,000 82,813
134 888 94 623 0 --
800 13,400 600 10,050 1,600 26,800
274 4,761 0 -- 0 --
1,100 28,669 1,100 28,669 2,300 59,944
1,000 25,813 900 23,231 1,900 49,044
7,101 216,581 6,470 197,335 16,603 506,392
20,507 576,759 20,149 566,691 36,868 1,036,913
4,430 199,350 3,869 174,105 10,329 464,805
905 26,132 860 24,832 1,892 54,632
478 8,843 0 -- 0 --
700 5,950 500 4,250 900 7,650
480 7,320 369 5,627 621 9,470
1,555 45,192 1,505 43,739 3,155 91,692
12,681 710,929 11,587 649,596 22,244 1,247,053
229 5,668 0 -- 0 --
300 9,919 200 6,613 400 13,225
374 3,880 284 2,947 0 --
1,000 30,063 900 27,056 2,000 60,125
4,205 141,919 3,699 124,841 8,268 279,045
500 2,375 400 1,900 600 2,850
2,405 127,766 2,095 111,297 5,509 292,666
5,471 143,956 4,875 128,273 12,714 334,537
0 -- 600 12,338 1,000 20,563
7,405 160,596 7,051 152,919 15,118 327,872
642 9,028 398 5,597 774 10,884
1,012 10,310 679 6,917 1,039 10,585
</TABLE>
129
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Safeway Inc 1,298 $ 51,109 3,554 $ 139,939
Sara Lee Corp 633 28,643 3,553 160,773
Sbarro Inc 0 -- 0 --
Shoney's Inc 97 230 370 879
Sizzler International Inc 254 460 0 --
Smucker (J M) Co Class A 305 6,615 0 --
Southland Corp 1,800 4,134 1,400 3,216
Starbucks Corp 400 12,625 1,300 41,031
Suiza Foods Corp 100 4,838 400 19,350
Super Value Inc 156 3,169 986 20,028
Sysco Corp 410 8,277 2,574 51,963
Tootsie Roll Industries 436 14,715 437 14,743
Tricon Global Restaurants+ 226 8,376 1,275 47,255
Tyson Food Inc Class A 591 9,752 1,390 22,761
Unilever NV (Netherlands) 3,272 207,362 11,812 748,585
Universal Corp 181 5,702 500 15,750
Universal Foods Corp 558 11,788 640 13,520
UST Inc 292 7,629 1,528 39,919
Vlasic Foods International
Inc 80 1,160 362 5,249
Weis Markets Inc 200 6,963 200 6,963
Wendy's International Inc 211 4,233 1,070 21,467
Whole Foods Market Inc 100 4,138 400 16,550
Winn-Dixie Stores Inc 166 6,184 1,209 45,035
Wrigley (W M) Jr Co 184 14,260 879 68,123
------------ ------------
TOTAL FOOD & RELATED
- VALUE $ 1,015,711 $ 3,894,278
- COST $ 853,285 $ 3,144,255
FURNITURE & APPLIANCES
PERCENT OF NET ASSETS 0.05% 0.09%
Bassett Furniture Industries 25 $ 553 50 $ 1,106
Ethan Allen Interiors Inc 100 3,250 400 13,000
HON Industries Inc 306 6,579 640 13,760
Hussmann International Inc 32 420 438 5,749
Knoll Inc 0 -- 200 5,188
Leggett & Platt Inc 916 18,377 2,600 52,163
Maytag Corp 116 5,003 779 33,594
Miller (Herman) Inc 476 9,758 1,240 25,420
National Presto Industries
Inc 0 -- 0 --
Skyline Corp 20 565 44 1,243
Sunbeam Oster Co Inc 300 2,250 1,000 7,500
Whirlpool Corp 83 4,119 605 30,023
------------ ------------
TOTAL FURNITURE & APPLIANCES
- VALUE $ 50,874 $ 188,746
- COST $ 36,643 $ 183,322
</TABLE>
130
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
6,776 $ 266,805 6,378 $ 251,134 13,752 $ 541,485
8,137 368,199 7,173 324,578 17,602 796,490
319 6,320 219 4,339 0 --
751 1,784 596 1,415 1,304 3,097
434 787 319 578 0 --
436 9,456 331 7,179 0 --
2,600 5,972 1,800 4,134 4,200 9,647
2,400 75,750 2,300 72,594 4,900 154,656
800 38,700 700 33,863 1,500 72,563
2,188 44,444 2,088 42,413 3,836 77,919
6,170 124,557 5,498 110,991 13,474 272,006
654 22,073 437 14,737 1,104 37,260
2,675 99,142 2,387 88,468 4,867 180,383
2,511 41,118 2,473 40,495 5,145 84,249
26,120 1,655,354 25,664 1,626,455 46,992 2,978,117
1,039 32,729 894 28,161 1,965 61,897
818 17,280 978 20,660 1,540 32,533
3,453 90,210 3,035 79,289 7,426 194,004
832 12,064 727 10,542 1,802 26,129
300 10,444 200 6,963 500 17,406
2,334 46,826 2,263 45,401 4,251 85,286
700 28,963 700 28,963 1,500 62,063
2,758 102,736 2,605 97,036 4,866 181,259
2,064 159,960 1,864 144,460 4,689 363,398
------------ ------------ ------------
$ 8,582,777 $ 7,940,716 $ 17,053,766
$ 6,847,035 $ 6,417,182 $ 14,854,198
0.13% 0.16% 0.19%
200 $ 4,425 120 $ 2,655 206 $ 4,558
800 26,000 700 22,750 1,500 48,750
1,268 27,262 1,208 25,972 2,670 57,405
1,025 13,453 797 10,461 1,532 20,108
300 7,781 200 5,188 600 15,563
4,848 97,263 4,668 93,652 9,860 197,816
1,699 73,269 1,439 62,057 3,064 132,135
2,396 49,118 2,316 47,478 4,940 101,270
116 4,256 81 2,972 0 --
222 6,272 78 2,204 133 3,757
2,000 15,000 1,900 14,250 4,200 31,500
1,360 67,490 1,298 64,413 2,449 121,532
------------ ------------ ------------
$ 391,589 $ 354,052 $ 734,394
$ 366,752 $ 345,316 $ 805,974
</TABLE>
131
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
HEALTHCARE
PERCENT OF NET ASSETS 0.12% 0.17%
Apria Healthcare Group Inc 500 $ 2,094 600 $ 2,513
Beverly Enterprises Inc 575 4,528 1,346 10,600
Cardinal Health Inc 306 26,775 1,074 93,975
First Health Group Corp 568 11,467 880 17,765
Healthsouth Corp+ 610 11,552 3,390 64,198
Idexx Laboratories Inc 400 7,000 500 8,750
Lincare Holdings Inc 200 6,788 400 13,575
Mid Atlantic Medical
Services 400 2,225 500 2,781
Morrison Health Care Inc 128 2,256 66 1,163
Novacare Inc 0 -- 0 --
Oakley Inc 600 6,038 600 6,038
Oxford Health Plans Inc 500 3,063 900 5,513
PacifiCare Health Systems
Inc Class A 112 6,776 70 4,235
PacifiCare Health Systems
Inc Class B 174 10,962 295 18,585
St Jude Medical Inc+ 152 3,354 696 15,356
United Healthcare Corp 297 10,729 1,539 55,596
Universal Health Services
Inc 100 3,875 400 15,500
Vencor Inc 500 1,813 700 2,538
Ventas Inc 500 5,313 900 9,563
------------ ------------
TOTAL HEALTHCARE
- VALUE $ 126,608 $ 348,244
- COST $ 185,488 $ 453,191
HOSPITAL & MEDICAL SUPPLIES
PERCENT OF NET ASSETS 0.38% 0.89%
Allegiance Corp 562 $ 15,877 1,656 $ 46,782
American Oncology Resources 0 -- 200 1,700
Arrow International Inc 0 -- 100 2,713
Arterial Vascular
Engineering 0 -- 200 7,000
Bard (C R) Inc 143 4,683 455 14,901
Bausch & Lomb Inc 56 2,370 491 20,775
Baxter International Inc 470 25,028 2,097 111,665
Becton Dickinson & Co 318 10,593 1,774 59,096
Biomet Inc 132 3,548 926 24,886
Boston Scientific Corp+ 301 20,844 1,468 101,659
Columbia/HCA Healthcare Corp 940 21,209 5,159 116,400
Dentsply International Inc 400 8,538 600 12,806
Depuy Inc 0 -- 200 6,875
Guidant Corp 206 12,721 1,109 68,481
Health Care & Retirement
Corp 150 3,825 600 15,300
Health Management Associates
Inc
Class A 1,162 20,989 3,162 57,114
Hillenbrand Industries Inc 300 16,069 700 37,494
</TABLE>
132
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0.25% 0.30% 0.37%
800 $ 3,350 800 $ 3,350 1,300 $ 5,444
2,800 22,050 2,642 20,806 5,600 44,100
2,415 211,313 2,250 196,875 5,313 464,888
1,732 34,965 1,692 34,157 3,530 71,262
7,777 147,277 6,319 119,666 13,105 248,176
800 14,000 600 10,500 1,000 17,500
800 27,150 800 27,150 1,600 54,300
700 3,894 500 2,781 1,300 7,231
214 3,772 132 2,327 258 4,547
975 7,130 710 5,192 0 --
1,200 12,075 800 8,050 1,200 12,075
1,800 11,025 1,300 7,963 3,700 22,663
459 27,770 135 8,168 242 14,641
626 39,438 511 32,193 1,195 75,285
1,635 36,072 1,534 33,844 2,835 62,547
3,529 127,485 3,247 117,298 6,162 222,602
800 31,000 700 27,125 1,600 62,000
1,500 5,438 1,180 4,278 2,474 8,968
1,700 18,063 1,580 16,788 3,374 35,849
------------ ------------ ------------
$ 783,267 $ 678,511 $ 1,434,078
$ 908,349 $ 798,376 $ 1,734,718
1.34% 1.65% 2.22%
3,260 $ 92,095 2,996 $ 84,637 6,614 $ 186,845
0 -- 200 1,700 400 3,400
0 -- 0 -- 200 5,425
300 10,500 200 7,000 600 21,000
1,108 36,287 997 32,652 1,896 62,094
1,050 44,428 975 41,255 1,755 74,258
4,915 261,724 4,326 230,359 11,368 605,346
4,342 144,643 3,860 128,586 7,940 264,501
1,946 52,299 1,742 46,816 4,260 114,488
3,406 235,865 3,067 212,390 7,829 542,158
11,836 267,050 10,867 245,187 21,254 479,543
1,200 25,613 1,100 23,478 2,300 49,091
400 13,750 300 10,313 900 30,938
2,717 167,775 2,367 146,162 6,073 375,008
1,150 29,325 1,000 25,500 2,250 57,375
5,912 106,776 5,650 102,053 12,080 218,186
1,300 69,631 1,300 69,631 2,700 144,619
</TABLE>
133
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Johnson & Johnson 1,933 $ 133,376 9,995 $ 689,654
Mallinckrodt Group Inc 87 1,990 584 13,359
Manor Care Inc 61 1,464 501 12,024
Medpartners Inc 710 1,775 1,889 4,723
Medtronic Inc 720 36,990 3,514 180,532
Phycor Inc 300 2,081 800 5,550
Quorum Health Group Inc 150 2,850 550 10,450
Safeskin Corp 200 6,750 600 20,250
Sofamor Danek Group Inc 100 8,344 300 25,031
STERIS Corp 400 9,550 900 21,488
Stryker Corp 348 11,180 1,120 35,980
Sybron International Corp 600 10,913 1,500 27,281
Tenet Healthcare Corp+ 424 10,945 2,482 64,067
Thermo Cardiosystems Inc 150 2,250 250 3,750
United States Surgical 152 6,071 599 23,923
------------ ------------
TOTAL HOSPITAL & MEDICAL
SUPPLIES
- VALUE $ 412,823 $ 1,843,709
- COST $ 379,009 $ 1,533,214
HOUSEHOLD PRODUCTS
PERCENT OF NET ASSETS 0.29% 0.75%
Alberto-Culver Co Class B 102 $ 2,040 485 $ 9,700
Avon Products Inc 160 10,060 987 62,058
Colgate-Palmolive Co 479 34,548 2,258 162,858
Dial Corp 536 10,452 1,480 28,860
Estee Lauder Co Class A 200 11,775 400 23,550
Gillette Co 1,642 67,526 8,342 343,064
International Specialty
Produc 0 -- 200 3,063
Kimberly-Clark Corp 786 29,966 4,154 158,371
NCH Corp 0 -- 0 --
Procter & Gamble Co 1,903 145,579 9,984 763,775
------------ ------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 311,946 $ 1,555,299
- COST $ 278,569 $ 1,117,720
INSURANCE
PERCENT OF NET ASSETS 0.90% 2.18%
Aegon NV ADR (Netherlands) 22 $ 1,881 329 $ 28,130
Aetna Inc 174 10,473 1,200 72,225
AFLAC Corp 1,392 34,974 3,940 98,993
Alleghany Corp 2 416 102 21,216
Allmerica Financial Corp 124 7,394 330 19,676
Allstate Corp 1,144 42,900 6,802 255,075
American Bankers Insurance
Gro 0 -- 400 20,750
</TABLE>
134
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
23,411 $ 1,615,358 20,549 $ 1,417,880 50,805 $ 3,505,544
1,443 33,009 1,305 29,852 2,292 52,430
1,199 28,776 1,112 26,688 2,037 48,888
3,720 9,300 2,752 6,880 7,862 19,655
8,214 421,994 7,198 369,797 17,713 910,005
1,550 10,753 1,150 7,978 2,450 16,997
1,000 19,000 950 18,050 2,100 39,900
1,100 37,125 1,100 37,125 2,300 77,625
600 50,063 600 50,063 1,300 108,469
1,700 40,588 1,600 38,200 3,600 85,950
2,068 66,435 1,988 63,865 4,200 134,925
2,800 50,925 2,700 49,106 5,700 103,669
5,683 146,692 5,354 138,200 9,920 256,060
300 4,500 300 4,500 450 6,750
1,465 58,508 1,276 50,960 2,442 97,527
------------ ------------ ------------
$ 4,150,787 $ 3,716,863 $ 8,698,669
$ 3,308,005 $ 3,005,129 $ 7,541,351
1.16% 1.41% 1.99%
1,110 $ 22,200 982 $ 19,640 1,769 $ 35,380
2,243 141,029 2,020 127,008 5,222 328,333
5,119 369,208 4,546 327,880 11,223 809,459
2,841 55,400 2,628 51,246 5,708 111,306
700 41,213 600 35,325 1,400 82,425
19,548 803,911 17,208 707,679 42,422 1,744,604
300 4,594 300 4,594 700 10,719
9,713 370,308 8,477 323,186 21,041 802,188
124 7,053 89 5,062 0 --
23,358 1,786,886 20,527 1,570,315 50,716 3,879,773
------------ ------------ ------------
$ 3,601,802 $ 3,171,935 $ 7,804,187
$ 2,649,415 $ 2,407,816 $ 6,422,454
3.28% 4.15% 4.82%
1,504 $ 128,592 588 $ 50,274 910 $ 77,805
2,668 160,580 2,416 145,413 4,854 292,150
7,434 186,779 7,074 177,734 15,054 378,232
104 21,632 104 21,632 304 63,232
579 34,523 572 34,106 1,203 71,729
15,446 579,225 14,066 527,475 27,214 1,020,525
700 36,313 600 31,125 1,500 77,813
</TABLE>
135
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
American Financial Group Inc 304 $ 10,108 490 $ 16,293
American General Corp 306 19,661 2,028 130,299
American International Group
Inc 1,490 115,156 7,872 608,603
American National Insurance
Co 100 9,025 100 9,025
Aon Corp 267 16,704 1,310 81,957
Argonaut Group Inc 0 -- 100 2,575
Axa-UAP ADR (France) 1,875 101,835 6,608 358,896
Chubb Corp 215 13,438 1,324 82,750
CIGNA Corp 237 13,790 1,753 102,003
Cincinnati Financial Corp 190 6,389 1,338 44,990
CMAC Investment Corp 100 3,850 300 11,550
CNA Financial Corp 200 7,325 400 14,650
Conseco Inc 392 10,829 2,502 69,118
Equitable Co Inc 400 22,875 1,100 62,906
Everest Reinsurance Holdings
Inc 300 10,500 600 21,000
Foundation Health Systems 491 5,493 1,326 14,835
Fremont General Corporation 100 4,275 400 17,100
General Re Corp 101 20,958 651 135,083
Hartford Financial Services
Group 272 12,172 1,862 83,325
Highlands Insurance Group 37 463 76 950
Horace Mann Educators Corp 200 5,575 700 19,513
HSB Group Inc 345 14,964 420 18,218
Humana Inc+ 257 3,341 1,270 16,510
Jefferson-Pilot Corp 160 9,080 858 48,692
John Alden Financial Corp 0 -- 0 --
Leucadia National Corp 200 5,538 600 16,613
Lincoln National Corp 144 12,384 836 71,896
Loews Corp 155 13,078 883 74,503
Marsh & McLennan Companies
Inc 300 14,550 2,077 100,713
MBIA Inc 104 5,837 764 42,880
Mercury General Corp 200 7,313 400 14,625
Ohio Casualty Corp 100 3,750 400 15,000
Old Republic International
Corp 525 11,714 1,725 38,489
PMI Group Inc 100 5,538 300 16,613
Progressive Corp Ohio 85 8,282 550 53,591
Protective Life Corp 200 6,175 800 24,700
Provident Co Inc 294 10,584 932 33,552
Providian Financial Corp 155 9,949 688 44,161
Reliance Group Holdings 300 3,788 900 11,363
Reliastar Financial Corp 400 15,700 1,300 51,025
SAFECO Corp 176 7,150 1,108 45,013
St Paul Co 354 10,819 1,875 57,305
Sunamerica Inc 309 19,139 1,533 94,950
TIG Holdings Inc 200 2,763 600 8,288
</TABLE>
136
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,013 $ 33,682 908 $ 30,191 1,980 $ 65,835
4,662 299,534 4,301 276,339 8,348 536,359
18,275 1,412,847 16,074 1,242,682 39,695 3,068,881
300 27,075 300 27,075 600 54,150
3,119 195,132 2,854 178,553 5,434 339,965
0 -- 200 5,150 300 7,725
14,697 798,231 14,404 782,316 26,332 1,430,156
3,068 191,750 2,835 177,188 5,567 347,938
3,996 232,517 3,616 210,406 6,980 406,149
3,135 105,414 2,920 98,185 5,285 177,708
600 23,100 600 23,100 1,200 46,200
800 29,300 800 29,300 1,600 58,600
5,661 156,385 5,195 143,512 10,140 280,118
2,100 120,094 2,000 114,375 4,400 251,625
1,200 42,000 1,100 38,500 2,400 84,000
2,654 29,692 2,513 28,114 5,441 60,871
700 29,925 600 25,650 1,400 59,850
1,413 293,198 1,329 275,768 2,474 513,355
4,330 193,767 3,986 178,373 7,700 344,575
172 2,150 136 1,700 216 2,700
1,200 33,450 1,200 33,450 2,500 69,688
863 37,433 836 36,262 1,730 75,039
2,972 38,636 2,822 36,686 5,215 67,795
1,925 109,244 1,902 107,939 3,469 196,866
0 -- 0 -- 300 6,731
1,100 30,456 1,100 30,456 2,300 63,681
1,879 161,594 1,670 143,620 3,351 288,186
2,082 175,669 2,012 169,763 3,813 321,722
4,765 231,102 4,183 202,876 8,375 406,187
1,767 99,173 1,710 95,974 3,205 179,881
700 25,594 700 25,594 1,500 54,844
800 30,000 700 26,250 1,600 60,000
3,250 72,516 3,075 68,611 6,550 146,147
600 33,225 600 33,225 1,300 71,988
1,369 133,392 1,248 121,602 2,361 230,050
1,500 46,313 1,400 43,225 3,100 95,713
1,812 65,232 1,702 61,272 3,666 131,976
1,702 109,247 1,496 96,025 3,097 198,789
1,700 21,463 1,600 20,200 3,400 42,925
2,500 98,125 2,400 94,200 5,100 200,175
2,607 105,909 2,498 101,481 4,523 183,747
4,298 131,358 4,060 124,084 7,618 232,825
3,597 222,789 3,390 209,968 6,399 396,338
1,200 16,575 1,200 16,575 2,500 34,531
</TABLE>
137
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Tokio Marine & Fire
Insurance Co ADR (Japan) 3,718 $ 148,719 15,400 $ 615,999
Torchmark Corp 162 5,792 1,097 39,218
Transamerica Corp 76 7,795 542 55,589
Transatlantic Holdings Inc 126 10,230 250 20,297
Travelers Inc 1,573 69,801 9,265 411,134
Travelers Property Casualty 100 3,294 100 3,294
UICI 200 3,025 500 7,594
Unitrin Inc 100 5,638 400 22,550
UNUM Corp 172 7,568 1,156 50,864
Wellpoint Health Networks 100 5,338 200 10,675
------------ ------------
TOTAL INSURANCE
- VALUE $ 977,095 $ 4,539,400
- COST $ 887,562 $ 3,886,187
LODGING
PERCENT OF NET ASSETS 0.04% 0.09%
Choice Hotels International
Inc 59 $ 708 505 $ 6,060
Extended Stay America Inc 0 -- 900 7,875
Hilton Hotels Corp 304 6,308 1,911 39,653
Homestead Village Property
Inc 75 614 87 712
Host Marriott Corp 800 11,200 2,500 35,000
Marriott International 356 9,990 2,012 56,462
Primadonna Resorts Inc 0 -- 0 --
Promus Hotel Corp 441 13,561 1,218 37,454
Sodexho Marriott Services
Inc 44 1,095 251 6,244
Sunburst Hospitality Corp 19 83 168 735
------------ ------------
TOTAL LODGING
- VALUE $ 43,559 $ 190,195
- COST $ 41,581 $ 196,239
MACHINERY
PERCENT OF NET ASSETS 0.22% 0.41%
AGCO Corp 300 $ 2,588 800 $ 6,900
AVX Corp 300 4,463 300 4,463
Black & Decker Corp 126 5,245 761 31,677
Camco International Inc 200 10,050 500 25,125
Case Corp 103 2,781 604 16,308
Caterpillar Inc 530 22,359 2,959 124,833
Cincinnati Milacron Inc 61 1,182 362 7,014
Cummins Engine Co Inc 25 1,017 298 12,125
Deere & Co 339 11,166 1,949 64,195
Federal Mogul Corp 396 21,137 800 42,700
Flowserve Corp 200 3,750 600 11,250
Harsco Corp 338 12,400 720 26,415
</TABLE>
138
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
34,176 $ 1,367,039 32,669 $ 1,306,759 62,608 $ 2,504,319
2,606 93,165 2,418 86,444 4,644 166,023
1,199 122,972 1,044 107,075 2,087 214,048
532 43,192 490 39,782 960 77,940
21,213 941,326 19,304 856,620 37,241 1,652,569
300 9,881 200 6,588 400 13,175
1,000 15,188 900 13,669 2,000 30,375
800 45,100 700 39,463 1,600 90,200
2,574 113,256 2,391 105,204 4,559 200,596
400 21,350 400 21,350 800 42,700
------------ ------------ ------------
$ 10,164,401 $ 9,356,528 $ 18,866,015
$ 8,281,273 $ 7,777,238 $ 17,320,893
0.13% 0.16% 0.22%
1,105 $ 13,260 807 $ 9,684 1,217 $ 14,604
1,700 14,875 1,700 14,875 3,600 31,500
4,372 90,719 4,093 84,930 9,873 204,865
100 819 113 925 188 1,539
4,700 65,800 4,500 63,000 9,600 134,400
4,410 123,756 3,856 108,209 10,302 289,100
0 -- 0 -- 400 3,050
2,385 73,339 2,289 70,387 4,845 148,984
588 14,627 494 12,288 1,237 30,770
368 1,610 269 1,177 405 1,772
- ----------- ------------ ----------- ------------ ----------- ------------
$ 398,805 $ 365,475 $ 860,584
$ 380,005 $ 375,098 $ 937,414
0.62% 0.79% 0.89%
1,600 $ 13,800 1,600 $ 13,800 3,300 $ 28,463
600 8,925 400 5,950 900 13,388
1,757 73,135 1,659 69,056 3,034 126,290
900 45,225 900 45,225 1,900 95,475
1,393 37,611 1,311 35,397 2,408 65,016
6,710 283,078 6,208 261,900 12,259 517,177
802 15,539 767 14,861 1,215 23,541
746 30,353 624 25,389 1,256 51,104
4,540 149,536 4,182 137,745 8,205 270,252
1,453 77,554 1,398 74,618 2,980 159,058
1,100 20,625 1,100 20,625 2,300 43,125
1,348 49,455 1,258 46,153 2,620 96,121
</TABLE>
139
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ingersoll-Rand Co 272 $ 10,812 1,350 $ 53,663
Jacobs Engineering Group+ 0 -- 0 --
Kubota Corp ADR (Japan) 1,434 52,341 5,703 208,160
MagneTek Inc+ 0 -- 0 --
Makita Corp ADR (Japan) 1,420 15,975 4,803 54,034
McDermott International Inc 146 2,929 456 9,149
Nordson Corp 214 9,122 160 6,820
Pall Corp 183 3,752 987 20,234
Parker Hannifin Corp 158 4,582 887 25,723
Pentair Co 200 5,575 500 13,938
Presstek Inc 200 1,638 400 3,275
SPX Corp 22 1,095 46 2,289
Tecumseh Products Co Class A 241 11,463 190 9,037
Teleflex Inc 350 11,025 500 15,750
Thermo Electron Corp+ 239 3,884 1,236 20,085
UCAR International Inc 200 3,625 500 9,063
York International Corp 202 6,994 620 21,468
------------ ------------
TOTAL MACHINERY
- VALUE $ 242,950 $ 845,693
- COST $ 328,844 $ 1,129,114
MANUFACTURING
PERCENT OF NET ASSETS 0.05% 0.12%
Carlisle Corp 100 $ 3,788 400 $ 15,150
Tyco International Ltd 924 51,282 4,220 234,210
West Teleservices 0 -- 0 --
------------ ------------
TOTAL MANUFACTURING
- VALUE $ 55,070 $ 249,360
- COST $ 33,012 $ 179,246
METAL FABRICATORS
PERCENT OF NET ASSETS 0.16% 0.37%
Alcan Aluminum Ltd 327 $ 6,213 1,795 $ 34,105
Allegheny Teledyne Inc 263 3,961 1,538 23,166
Aluminum Co of America 274 16,406 1,570 94,004
Armco Inc+ 111 458 953 3,931
Barrick Gold Corp 623 8,099 2,938 38,194
Battle Mountain Gold Co 337 1,032 1,957 5,993
Bethlehem Steel Corp+ 67 482 938 6,742
British Steel PLC ADR (UK) 578 10,404 1,872 33,696
Crane Co 80 3,220 395 15,899
Engelhard Corp 270 4,961 1,171 21,517
Freeport McMoRan Inc 231 2,685 1,382 16,066
Getchell Gold Corp 24 216 259 2,331
Howmet International Inc 0 -- 200 2,000
</TABLE>
140
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,007 $ 119,528 2,862 $ 113,765 5,417 $ 215,326
373 9,512 0 -- 0 --
13,686 499,539 13,035 475,778 25,060 914,690
367 4,771 0 -- 0 --
12,909 145,226 12,447 140,029 23,783 267,559
1,093 21,928 1,047 21,005 1,893 37,978
293 12,489 208 8,866 385 16,411
2,250 46,125 2,123 43,522 3,943 80,832
2,008 58,232 1,938 56,202 3,509 101,761
876 24,419 906 25,255 1,800 50,175
400 3,275 400 3,275 600 4,913
226 11,244 83 4,129 248 12,338
345 16,409 249 11,843 431 20,499
908 28,602 788 24,822 1,800 56,700
2,866 46,573 2,746 44,623 5,171 84,029
1,000 18,125 900 16,313 2,000 36,250
1,159 40,130 1,114 38,572 2,385 $ 82,581
- ----------- ------------ ----------- ------------ ----------- ------------
$ 1,910,963 $ 1,778,718 $ 3,471,052
$ 2,604,243 $ 2,473,585 $ 5,016,927
0.19% 0.23% 0.33%
700 $ 26,513 700 $ 26,513 1,500 $ 56,813
10,149 563,270 8,942 496,281 22,024 1,222,332
0 -- 0 -- 200 2,100
- ----------- ------------ ----------- ------------ ----------- ------------
$ 589,783 $ 522,794 $ 1,281,245
$ 427,722 $ 392,758 $ 968,054
0.58% 0.76% 0.82%
4,135 $ 78,565 3,904 $ 74,176 7,507 $ 142,633
3,498 52,689 3,398 51,182 6,198 93,357
3,561 213,215 3,078 184,295 6,347 380,027
1,943 8,015 1,647 6,794 3,846 15,865
6,757 87,841 6,482 84,266 12,274 159,562
4,566 13,983 4,060 12,434 7,516 23,018
2,551 18,335 2,252 16,186 4,089 29,390
4,262 76,716 4,165 74,970 7,566 136,188
815 32,804 861 34,655 1,498 60,295
2,601 47,793 2,522 46,342 4,626 85,003
3,143 36,537 3,247 37,746 7,341 85,339
222 1,998 458 4,122 646 5,814
400 4,000 300 3,000 600 6,000
</TABLE>
141
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Inland Steel Industries Inc 151 $ 2,860 316 $ 5,984
Kaydon Corp 0 -- 0 --
Laboratory Corp of America
Holdings 660 743 418 470
Mitsui & Co Ltd ADR (Japan) 660 71,197 2,415 260,518
Nucor Corp 131 4,708 734 26,378
Oregon Steel Mills Inc 0 -- 0 --
Phelps Dodge Corp 76 3,401 440 19,690
Placer Dome Inc 353 2,846 1,924 15,512
Precision Castparts Corp 100 3,769 300 11,306
Reynolds Metals Co 59 2,828 606 29,050
SKF AB ADR (Sweden) 681 10,215 2,331 34,965
Steel Dynamics Inc 0 -- 300 3,338
Timken Co 102 1,855 500 9,094
USX--U.S. Steel Group 136 2,848 690 14,447
WMC Ltd ADR (Japan) 940 9,165 3,437 33,511
Worthington Industries Inc 137 1,781 797 10,361
------------ ------------
TOTAL METAL FABRICATORS
- VALUE $ 176,353 $ 772,268
- COST $ 272,820 $ 1,210,649
OFFICE EQUIPMENT & SUPPLIES
PERCENT OF NET ASSETS 0.04% 0.07%
Ingram Micro Inc Class A 0 $ -- 200 $ 9,000
Ricoh Co Ltd ADR (Japan) 677 32,414 2,679 128,267
Standard Register Co 301 9,444 0 --
------------ ------------
TOTAL OFFICE EQUIPMENT &
SUPPLIES
- VALUE $ 41,858 $ 137,267
- COST $ 53,924 $ 198,090
PHARMACEUTICALS
PERCENT OF NET ASSETS 1.62% 3.75%
Abbott Laboratories 2,188 $ 84,237 11,524 $ 443,673
Allergan Inc 65 3,071 504 23,814
ALZA Corp 122 4,392 699 25,164
American Home Products Corp 1,930 96,740 9,818 492,126
Amgen Inc+ 377 22,950 1,889 114,993
Astra AB ADR Series B
(Sweden) 3,938 63,499 14,004 225,815
Bergen Brunswig Corp Class A 225 7,678 745 25,423
Bristol-Myers Squibb Co 1,384 135,458 7,394 723,687
Centocor Inc 346 11,245 940 30,550
Covance Inc 90 2,003 581 12,927
Dura Pharmaceuticals Inc 0 -- 500 8,250
Forest Labs Inc Class A 364 11,921 1,140 37,335
Glaxo Holdings PLC ADR (UK) 3,100 172,243 10,992 610,742
</TABLE>
142
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
998 $ 18,900 926 $ 17,536 1,794 $ 33,974
500 13,531 0 -- 0 --
1,043 1,173 684 770 1,337 1,504
5,822 628,048 5,584 602,374 10,595 1,142,936
1,581 56,817 1,560 56,063 2,837 101,955
299 2,822 199 1,878 0 --
1,095 49,001 1,038 46,451 1,912 85,562
4,869 39,256 4,318 34,814 7,878 63,516
600 22,613 513 19,334 1,200 45,225
1,304 62,511 1,306 62,606 2,354 112,845
5,117 76,755 5,246 78,690 9,048 135,720
600 6,675 400 4,450 1,000 11,125
1,240 22,553 1,078 19,606 1,984 36,084
1,564 32,746 1,494 31,281 2,692 56,364
7,559 73,700 7,868 76,713 14,098 137,456
1,935 25,155 1,689 21,957 3,092 40,196
- ----------- ------------ ----------- ------------ ----------- ------------
$ 1,804,747 $ 1,704,691 $ 3,226,953
$ 2,777,500 $ 2,591,938 $ 5,075,043
0.11% 0.14% 0.15%
300 $ 13,500 300 $ 13,500 700 $ 31,500
6,249 299,194 6,025 288,469 11,533 552,185
432 13,554 312 9,789 0 --
- ----------- ------------ ----------- ------------ ----------- ------------
$ 326,248 $ 311,758 $ 583,685
$ 453,049 $ 435,062 $ 815,644
5.73% 7.16% 9.35%
26,866 $ 1,034,340 23,644 $ 910,293 58,292 $ 2,244,241
1,189 56,180 1,098 51,880 2,108 99,603
1,513 54,468 1,336 48,096 2,786 100,296
22,818 1,143,751 20,080 1,006,509 49,586 2,485,497
4,515 274,851 3,871 235,647 9,648 587,322
31,150 502,294 30,660 494,393 56,134 905,161
1,386 47,297 875 29,859 2,050 69,956
17,357 1,698,815 15,230 1,490,635 37,571 3,677,261
1,881 61,133 1,766 57,395 3,820 124,150
1,029 22,895 877 19,513 1,546 34,399
1,000 16,500 800 13,200 1,700 28,050
2,132 69,823 1,972 64,583 4,320 141,480
24,501 1,361,336 24,113 1,339,778 44,134 2,452,194
</TABLE>
143
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ICN Pharmaceuticals Inc 300 $ 4,613 1,006 $ 15,467
Immunex Corp 100 5,038 300 15,188
Interneuron Pharmaceuticals
Co 0 -- 400 1,050
IVAX Corp 1,230 9,533 1,240 9,610
Lilly (Eli) & Co 1,599 104,734 8,271 541,750
Marshall & Ilsley Corp 558 24,552 1,540 67,760
McKesson Corp 400 30,000 1,100 82,500
Merck & Co Inc 1,673 193,962 8,936 1,036,016
Millipore Corp 52 1,128 376 8,155
Mylan Laboratories 603 13,794 1,770 40,489
Novo Nordisk A/S ADR
(Denmark) 2,132 142,710 7,761 519,501
Omnicare Inc 400 12,475 1,200 37,425
Perrigo Co 812 6,902 550 4,675
Pfizer Inc 1,895 176,234 9,709 902,936
Pharmacia and Upjohn Inc 737 30,632 4,070 169,159
PharMerica Inc 35 137 338 1,320
Rexall Sundown Inc 200 3,638 500 9,125
Schering-Plough Corp 1,083 93,137 5,429 466,893
Schweitzer-Mauduit
International Inc 20 496 92 2,283
SmithKline Beecham PLC ADR
(UK) 1,955 111,190 6,895 392,152
SouthTrust Corp 706 22,857 2,170 70,254
ThermoLase Corp 0 -- 100 613
Warner Lambert Co 1,137 74,188 6,091 397,437
Watson Pharmaceutical Inc 400 18,025 1,100 49,569
Xoma Corp 188 388 0 --
Zeneca Group PLC ADR (UK) 1,474 53,801 5,331 194,582
------------ ------------
TOTAL PHARMACEUTICALS
- VALUE $ 1,749,601 $ 7,810,408
- COST $ 1,174,890 $ 4,668,275
PUBLISHING
PERCENT OF NET ASSETS 0.33% 0.61%
American Greetings Corp
Class A 133 $ 5,019 605 $ 22,158
Belo (A H) Corp 512 9,472 980 18,130
Central Newspapers Class A 100 6,200 300 18,600
Chris-Craft Industries Inc 119 4,953 268 11,156
Comcast Corp Class A 455 17,006 2,744 102,557
Donnelley (R R) & Sons Co 159 5,764 1,100 39,875
Dow Jones & Co Inc 104 5,181 788 39,252
E.W. Scripps Co 100 4,719 300 14,156
Elsevier NV ADR
(Netherlands) 3,287 82,174 11,861 296,525
Ennis Business Forms Inc 0 -- 0 --
Gannett Co Inc 478 28,202 2,145 126,555
Gibson Greetings Inc+ 0 -- 0 --
Golden Books Family
Entertainment Inc 234 322 0 --
</TABLE>
144
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,962 $ 30,166 1,860 $ 28,598 4,060 $ 62,423
500 25,313 500 25,313 1,000 50,625
0 -- 600 1,575 900 2,363
2,323 18,003 1,963 15,213 3,995 30,961
19,223 1,259,105 16,922 1,108,390 41,815 2,738,881
2,903 127,732 2,783 122,452 6,020 264,880
2,000 150,000 1,900 142,500 4,100 307,500
20,815 2,413,238 18,250 2,115,858 45,196 5,239,910
788 17,090 686 14,878 1,628 35,307
3,265 74,687 3,127 71,530 6,652 152,165
17,106 1,145,032 16,879 1,129,837 30,797 2,061,473
2,300 71,731 2,200 68,613 4,700 146,581
1,252 10,642 842 7,157 1,680 14,280
22,765 2,117,144 19,953 1,855,628 49,305 4,585,364
9,384 390,023 8,554 355,526 16,658 692,348
955 3,731 792 3,094 1,547 6,043
1,000 18,250 1,000 18,250 2,100 38,325
12,788 1,099,767 11,269 969,133 27,728 2,384,607
214 5,310 176 4,367 351 8,709
15,291 869,676 15,063 856,707 27,489 1,563,436
4,105 132,899 3,980 128,853 8,402 272,015
0 -- 0 -- 300 1,838
14,260 930,465 12,525 817,255 30,983 2,021,640
2,100 94,631 2,000 90,125 4,300 193,769
193 398 193 398 0 --
11,817 431,321 11,618 424,057 21,283 776,830
------------ ------------ ------------
$ 17,780,037 $ 16,137,088 $ 36,601,883
$ 10,467,422 $ 9,851,567 $ 23,938,098
0.90% 1.14% 1.36%
1,336 $ 48,931 1,292 $ 47,320 2,380 $ 87,168
1,928 35,668 1,888 34,928 3,980 73,630
500 31,000 500 31,000 1,100 68,200
506 21,062 344 14,319 232 9,657
6,525 243,872 5,637 210,683 14,100 526,988
2,628 95,265 2,433 88,196 4,705 170,556
1,730 86,176 1,604 79,899 3,115 155,166
700 33,031 600 28,313 1,300 61,344
26,326 658,150 25,863 646,575 47,359 1,183,975
247 2,485 0 -- 0 --
5,051 298,009 4,436 261,724 11,514 679,326
244 4,743 0 -- 0 --
313 430 233 320 0 --
</TABLE>
145
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Harland (John H) Co 55 $ 718 248 $ 3,239
Harte-Hanks Communications
Inc 200 4,388 600 13,163
Houghton Mifflin Co 304 9,177 240 7,245
Interpublic Group Co Inc 128 7,296 1,029 58,653
Knight-Ridder Inc 144 6,858 597 28,432
Lee Enterprises Inc 498 11,765 0 --
Liberty Media Group Class A 1,579 51,614 4,307 140,785
Marvel Entertainment Group
Inc 0 -- 200 30
McGraw-Hill Inc 176 13,420 840 64,050
Media General Inc Class A 280 11,900 220 9,350
Meredith Corp 102 3,423 434 14,566
Moore Corp Ltd 104 995 783 7,487
New York Times Co Class A 232 6,728 1,498 43,442
News Corporation Ltd 854 20,549 2,880 69,300
Primedia Inc 0 -- 200 2,000
Readers Digest Association
Class A 300 5,888 1,100 21,588
Readers Digest Association
Class B 200 4,050 300 6,075
Scholastic Inc 200 7,750 200 7,750
Times Mirror Co Class A 152 8,693 659 37,687
Washington Post Co Class B 27 13,838 100 51,250
Workflow Management Inc 0 -- 122 648
Ziff Davis Inc 0 -- 300 2,400
------------ ------------
TOTAL PUBLISHING
- VALUE $ 358,062 $ 1,278,104
- COST $ 338,422 $ 1,147,703
REAL ESTATE
PERCENT OF NET ASSETS 0.21% 0.30%
AMB Property Corp REIT 0 $ -- 200 $ 4,700
Archstone Communities Trust
REIT 600 11,625 1,600 31,000
Arden Realty Group Inc REIT 300 6,338 800 16,900
Boston Properties Inc REIT 200 5,713 600 17,138
CarrAmercia Realty Corp REIT 300 6,750 800 18,000
Castle & Cooke Inc 215 3,225 136 2,040
Catellus Development Corp 400 5,025 1,000 12,563
Chicago Title Corp 6 211 206 7,249
Cornerstone Properties Inc
REIT 500 7,188 1,400 20,125
Echelon International Corp 68 1,560 53 1,216
Equity Office Properties
Trust REIT 1,000 22,688 2,962 67,200
Equity Residential
Properties Trust REIT 400 15,975 1,300 51,919
Federal Realty Investment
Trus 0 -- 0 --
Fel Cor Lodging Trust Inc
REIT 200 4,075 800 16,300
Franchise Finance Corp REIT 0 -- 100 2,338
Health Care Property
Investors Inc REIT 300 9,394 300 9,394
HRPT Properties Trust REIT 600 9,375 1,900 29,688
</TABLE>
146
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
620 $ 8,099 616 $ 8,047 1,015 $ 13,258
1,100 24,131 1,000 21,938 2,200 48,263
460 13,886 310 9,358 890 26,867
2,325 132,525 2,058 117,306 4,960 282,720
1,424 67,818 1,381 65,770 2,603 123,968
708 16,727 510 12,049 0 --
8,180 267,384 7,788 254,570 16,738 547,123
1,400 210 200 30 600 90
1,865 142,206 1,737 132,446 3,190 243,238
410 17,425 290 12,325 570 24,225
926 31,079 908 30,475 1,646 55,244
1,808 17,289 1,536 14,688 2,924 27,961
3,452 100,108 3,254 94,366 6,266 181,714
6,384 153,615 6,249 150,367 11,313 272,219
400 4,000 300 3,000 600 6,000
2,000 39,250 1,900 37,288 4,100 80,462
300 6,075 300 6,075 600 12,150
200 7,750 200 7,750 400 15,500
1,574 90,013 1,439 82,293 2,921 167,045
180 92,250 133 68,163 325 166,563
255 1,355 215 1,142 486 2,582
700 5,600 500 4,000 1,100 8,800
$ 2,797,617 $ 2,576,723 $ 5,322,002
$ 2,477,341 $ 2,290,143 $ 4,758,681
------------ ------------ ------------
0.39% 0.52% 0.60%
300 $ 7,050 200 $ 4,700 600 $ 14,100
3,100 60,063 2,900 56,188 6,200 120,125
1,500 31,688 1,400 29,575 3,100 65,488
1,100 31,419 1,100 31,419 2,300 65,694
1,500 33,750 1,400 31,500 3,100 69,750
336 5,040 222 3,330 341 5,115
2,000 25,125 1,900 23,869 4,100 51,506
412 14,497 812 28,572 1,012 35,610
2,700 38,813 2,500 35,938 5,400 77,625
96 2,202 70 1,606 65 1,491
5,665 128,525 5,384 122,150 11,568 262,449
2,400 95,850 2,300 91,856 4,800 191,700
0 -- 0 -- 400 8,050
1,600 32,600 800 16,300 1,700 34,638
0 -- 0 -- 200 4,675
400 12,525 500 15,656 700 21,919
3,700 57,813 3,500 54,688 7,400 115,625
</TABLE>
147
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Kimco Realty Corp REIT 300 $ 10,650 650 $ 23,075
Mack-Cali Realty Corp REIT 300 8,644 800 23,050
MAXXAM Inc+ 0 -- 0 --
Meditrust Corp REIT 702 10,887 1,280 19,846
New Plan Realty Trust REIT 400 8,100 800 16,200
Patriot American Hospitality
Inc REIT 500 6,750 1,700 22,950
Public Storage Inc REIT 400 9,350 1,100 25,713
Simon Debartolo Group Inc
REIT 300 8,719 1,100 31,969
Starwood Lodging Trust REIT 964 35,186 2,666 97,309
United Dominion Realty Trust
Inc Reit 500 5,813 1,500 17,438
Vornado Realty Trust REIT 300 9,413 900 28,238
Weingarten Realty Investors
REIT 200 7,700 200 7,700
Westfield America Inc REIT 0 -- 200 3,175
------------ ------------
TOTAL REAL ESTATE
- VALUE $ 230,354 $ 624,433
- COST $ 262,251 $ 721,010
RETAIL & RELATED
PERCENT OF NET ASSETS 1.00% 2.24%
Abercrombie & Fitch Co 6 $ 258 30 $ 1,290
Amazon.com Inc 100 8,350 200 16,750
Ann Taylor Stores Inc 247 6,005 195 4,741
AutoZone Inc+ 256 6,640 1,211 31,410
Barnes & Noble 400 10,825 700 18,944
Bed Bath & Beyond Inc 400 7,225 1,400 25,288
Benetton SpA ADR (Italy) 1,917 55,593 6,962 201,898
Best Buy Co Inc 400 15,750 1,100 43,313
BJ's Wholesale Club Inc 365 12,319 0 --
Borders Group Inc 300 5,681 1,000 18,938
CDW Computer Centers Inc 0 -- 100 3,850
Charming Shoppes Inc 59 258 0 --
Circuit City Stores Inc 147 4,539 784 24,206
Coles Myer Ltd ADR
(Australia) 924 26,219 3,432 97,383
CompUSA Inc 400 4,750 1,200 14,250
Consolidated Stores Corp+ 118 3,717 868 27,342
Corporate Express Inc 650 6,256 1,250 12,031
Costco Co Inc+ 315 14,825 1,716 80,759
CVS Corp 494 17,969 2,816 102,432
Dayton-Hudson Corp 568 20,448 3,288 118,368
Department 56 Inc 200 5,900 200 5,900
Dillards Inc Class A 128 3,696 848 24,486
Dollar General Corp 515 13,841 1,041 27,977
Dollar Tree Stores Inc 200 5,800 550 15,950
Eastman Kodak Co 393 30,703 2,572 200,938
Enesco Group Inc 220 5,308 170 4,101
</TABLE>
148
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,350 $ 47,925 900 $ 31,950 2,000 $ 71,000
1,600 46,100 1,500 43,219 3,100 89,319
128 7,296 0 -- 0 --
2,951 45,733 2,610 40,453 5,915 91,687
1,600 32,400 1,500 30,375 3,200 64,800
3,300 44,550 2,700 36,450 5,700 76,950
2,200 51,425 2,100 49,088 4,400 102,850
2,100 61,031 2,000 58,125 4,200 122,063
5,068 184,982 6,693 244,294 10,355 377,958
2,800 32,550 2,400 27,900 5,200 60,450
1,700 53,338 1,700 53,338 3,600 112,950
400 15,400 400 15,400 900 34,650
400 6,350 300 4,763 600 9,525
------------ ------------ ------------
$ 1,206,040 $ 1,182,702 $ 2,359,762
$ 1,458,635 $ 1,447,185 $ 2,858,508
3.41% 4.22% 5.38%
71 $ 3,053 63 $ 2,709 113 $ 4,859
300 25,125 300 25,125 600 50,250
351 8,534 253 6,151 237 5,762
2,821 73,170 2,633 68,293 5,008 129,895
1,300 35,181 1,200 32,475 2,600 70,363
2,400 43,350 2,400 43,350 5,000 90,313
15,562 451,298 15,272 442,888 27,981 811,449
2,200 86,625 2,100 82,688 4,400 173,250
497 16,774 367 12,386 0 --
1,800 34,088 1,700 32,194 3,700 70,069
200 7,700 100 3,850 300 11,550
2,288 10,010 1,620 7,088 3,364 14,718
1,783 55,050 1,773 54,741 3,170 97,874
7,675 217,778 7,532 213,720 13,740 389,873
2,400 28,500 2,300 27,313 4,800 57,000
1,929 60,764 1,775 55,913 3,487 109,841
2,250 21,656 2,250 21,656 4,700 45,238
3,963 186,509 3,434 161,613 7,096 333,956
6,638 241,457 5,998 218,177 15,540 565,267
7,756 279,216 6,726 242,136 17,770 639,720
300 8,850 200 5,900 600 17,700
1,975 57,028 1,978 57,115 3,580 103,373
2,506 67,349 2,220 59,663 5,346 143,674
950 27,550 950 27,550 2,000 58,000
5,916 462,187 5,391 421,172 10,631 830,547
299 7,213 214 5,163 210 5,066
</TABLE>
149
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ensco International Inc 700 $ 7,350 1,900 $ 19,950
Family Dollar Stores Inc 560 7,105 1,840 23,345
Federated Department Stores
Inc+ 259 11,283 1,703 74,187
Fingerhut Co 505 12,246 400 9,700
Footstar Inc 46 1,340 245 7,136
Fred Myer Inc 200 7,863 1,200 47,175
Gap Inc 578 29,514 2,955 150,890
Global DirectMail Corp 200 2,663 200 2,663
Hancock Fabrics Inc 0 -- 0 --
Harcourt General Inc 89 4,322 582 28,263
Heilig Meyers Co 524 5,961 410 4,664
Home Depot Inc 2,166 83,390 10,942 421,266
Homebase Inc 365 2,236 0 --
Ito Yokado Co Ltd ADR
(Japan) 1,720 78,474 6,360 290,175
Jones Apparel Group Inc 400 7,750 1,000 19,375
Jostens Inc 107 2,127 280 5,565
K Mart Corp+ 804 10,251 3,867 49,304
Kohls Corp 672 30,534 1,740 79,061
Limited Inc 277 5,782 1,809 37,763
Longs Drug Stores Corp 76 2,594 349 11,910
Lowe's Co Inc 514 18,022 2,780 97,474
May Department Stores Co 294 16,538 1,818 102,263
Michaels Stores Inc 0 -- 0 --
Micro Warehouse Inc 300 4,875 300 4,875
Midas Inc 10 226 146 3,303
Neiman Marcus Group Inc 0 -- 300 7,294
Newell Co 259 12,367 1,230 58,733
Nordstrom Inc 244 7,305 1,190 35,626
Office Depot Inc+ 1,038 26,469 2,950 75,225
Officemax Inc 500 5,250 1,850 19,425
Payless ShoeSource Inc 217 8,924 511 21,015
Penney (J C) Co Inc 356 17,644 2,063 102,247
PetSmart Inc 1,200 5,925 1,300 6,419
Pier 1 Imports Inc 450 4,472 1,450 14,409
Proffitts Inc 400 10,200 1,100 28,050
Rite Aid Corp 218 7,889 2,078 75,198
Ross Stores Inc 200 7,275 700 25,463
Ruddick Corp 0 -- 0 --
Saks Holdings Inc 200 4,188 300 6,281
School Specialty Inc 0 -- 102 1,167
Sears Roebuck & Co 508 23,082 3,105 141,083
Service Merchandise Co 771 1,060 0 --
Sherwin Williams Co 261 6,231 1,419 33,879
Staples Inc 1,094 29,675 3,095 83,952
</TABLE>
150
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,700 $ 38,850 3,500 $ 36,750 7,400 $ 77,700
3,470 44,026 3,280 41,615 6,984 88,610
3,866 168,413 3,622 157,783 6,911 301,060
714 17,315 509 12,343 180 4,365
521 15,174 382 11,126 654 19,048
2,800 110,075 2,100 82,556 4,500 176,906
6,883 351,463 6,016 307,192 15,920 812,915
300 3,994 200 2,663 400 5,325
342 3,249 0 -- 0 --
1,319 64,054 1,211 58,809 2,253 109,411
834 9,487 544 6,188 1,300 14,787
25,612 986,061 22,472 865,171 55,546 2,138,520
497 3,044 367 2,248 0 --
14,800 675,250 14,112 643,860 27,104 1,236,619
1,900 36,813 1,800 34,875 3,900 75,563
690 13,714 567 11,269 1,398 27,785
9,017 114,967 8,437 107,572 15,826 201,781
3,408 154,851 2,416 109,777 7,216 327,877
4,117 85,942 3,867 80,724 7,326 152,930
794 27,095 671 22,898 1,256 42,861
6,398 224,330 5,884 206,308 11,418 400,344
4,285 241,031 3,834 215,662 7,597 427,331
0 -- 0 -- 200 4,700
600 9,750 400 6,500 700 11,375
341 7,715 265 5,996 510 11,539
600 14,588 500 12,156 1,100 26,744
2,804 133,891 2,586 123,481 6,330 302,258
2,806 84,005 2,726 81,610 4,952 148,251
5,942 151,521 5,567 141,959 11,980 305,490
3,500 36,750 3,250 34,125 7,050 74,025
1,043 42,893 1,015 41,742 2,104 86,527
4,661 231,011 4,257 210,988 8,225 407,652
2,200 10,863 1,600 7,900 3,000 14,813
2,800 27,825 2,700 26,831 5,700 56,644
2,100 53,550 2,000 51,000 4,300 109,650
4,732 171,239 4,304 155,751 8,506 307,811
1,400 50,925 1,300 47,288 2,800 101,850
714 10,799 524 7,926 0 --
700 14,656 500 10,469 1,300 27,219
213 2,436 179 2,047 405 4,632
7,187 326,559 6,526 296,525 12,875 585,008
1,516 2,085 1,111 1,528 0 --
3,262 77,880 3,018 72,055 5,670 135,371
5,844 158,519 5,560 150,815 11,885 322,381
</TABLE>
151
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Sunglass Hut International
Inc 600 $ 3,450 500 $ 2,875
Talbots Inc 200 4,213 200 4,213
Tandy Corp 126 6,875 795 43,377
Tech Data Corp 200 7,563 600 22,688
TJX Companies Inc 326 7,274 2,436 54,353
Toys R Us Inc+ 471 8,743 2,221 41,227
U.S. Office Products Co 0 -- 231 1,729
Venator Group Inc+ 187 1,695 1,047 9,488
Walgreen Co 680 26,180 3,684 141,834
WalMart Stores Inc 3,248 190,819 16,793 986,588
Williams-Sonoma Inc 0 -- 0 --
------------ ------------
TOTAL RETAIL & RELATED
- VALUE $ 1,080,089 $ 4,656,690
- COST $ 912,799 $ 3,415,568
SERVICES
PERCENT OF NET ASSETS 0.05% 0.09%
Block (H R) Inc 115 $ 4,499 828 $ 32,396
CMS Energy Corp 0 -- 0 --
Corrections Corp of America 400 6,125 1,100 16,844
Public Service Enterprise
Group 388 14,211 1,835 67,207
Service Corp International 409 13,855 2,018 68,360
Sotheby's Holdings Inc 611 10,463 0 --
------------ ------------
TOTAL SERVICES
- VALUE $ 49,153 $ 184,807
- COST $ 51,475 $ 167,299
SHIPPING
PERCENT OF NET ASSETS 0.00% 0.00%
Halter Marine Group Inc 273 $ 2,457 282 $ 2,538
------------ ------------
TOTAL SHIPPING
- VALUE $ 2,457 $ 2,538
- COST $ 3,161 $ 3,332
TELECOMMUNICATIONS
PERCENT OF NET ASSETS 2.07% 4.67%
ADC Telecommunications 672 $ 14,910 1,860 $ 41,269
Adtran Inc 100 2,150 200 4,300
Advanced Fibre Communication 300 2,138 700 4,988
Airtouch Communications+ 910 51,188 4,068 228,825
Alcatel Alsthom Compagnie
Generale d'electricite ADR
(France) 3,265 98,561 11,620 350,778
Aliant Communications Inc 0 -- 0 --
Alltel Corp 329 14,846 2,237 100,945
Ameritech Corp 1,714 80,771 8,202 386,518
</TABLE>
152
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,000 $ 5,750 700 $ 4,025 1,300 $ 7,475
0 -- 200 4,213 400 8,425
1,822 99,413 1,817 99,140 3,358 183,221
1,200 45,375 1,100 41,594 2,300 86,969
5,858 130,707 4,914 109,644 12,982 289,661
5,070 94,112 4,917 91,272 9,313 172,873
480 3,600 403 3,024 912 6,838
2,678 24,269 2,311 20,943 4,309 39,050
8,662 333,487 7,556 290,906 20,070 772,695
39,060 2,294,774 34,380 2,019,824 84,854 4,985,172
0 -- 0 -- 400 10,200
------------ ------------ ------------
$ 10,556,160 $ 9,521,695 $ 21,077,864
$ 7,629,400 $ 7,083,125 $ 16,132,003
0.16% 0.18% 0.19%
1,884 $ 73,712 1,843 $ 72,107 3,490 $ 136,546
1,314 55,599 0 -- 0 --
2,100 32,156 2,000 30,625 4,200 64,313
4,244 155,436 4,016 147,086 7,664 280,694
4,712 159,619 4,446 150,608 8,309 281,467
848 14,522 623 10,669 0 --
------------ ------------ ------------
$ 491,044 $ 411,095 $ 763,020
$ 404,453 $ 363,945 $ 721,820
0.00% 0.00% 0.00%
369 $ 3,321 330 $ 2,970 630 $ 5,670
------------ ------------ ------------
$ 3,321 $ 2,970 $ 5,670
$ 4,327 $ 3,853 $ 7,435
7.13% 8.99% 10.71%
3,596 $ 79,786 3,416 $ 75,793 7,220 $ 160,194
200 4,300 300 6,450 700 15,050
1,300 9,263 1,300 9,263 2,800 19,950
9,966 560,588 8,797 494,831 21,655 1,218,094
25,951 783,396 25,515 770,233 46,611 1,407,069
490 12,128 0 -- 0 --
5,047 227,735 3,240 146,205 6,039 272,510
19,138 901,878 16,796 791,511 41,604 1,960,587
</TABLE>
153
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Andrew Corp+ 160 $ 2,370 762 $ 11,287
Ascend Communications Inc+ 250 8,750 1,500 52,500
Aspect Telecommunication
Corp 0 -- 500 11,906
AT & T Corp 2,497 125,156 14,547 729,172
Bell Atlantic Corp 2,284 100,781 11,590 511,408
BellSouth Corp 1,380 94,615 7,952 545,208
British Telecommunications
PLC ADR (UK) 1,874 239,754 6,923 885,710
Century Telephone Enterprise 0 -- 0 --
Ciena Corp 200 5,625 600 16,875
Comsat Corp 510 11,124 800 17,450
Cox Communications Inc Class
A 313 13,146 974 40,908
Deutsche Telekom Ag ADR
(Germany) 4,076 97,823 14,658 351,791
DSC Communications Corp 226 5,452 948 22,871
DSP Communications Inc 0 -- 500 5,719
Ericsson L M Telephone ADR
(Sweden) 2,182 46,640 7,926 169,418
Excel Communications Inc 400 8,075 900 18,169
Federal Signal Corp 498 10,147 490 9,984
Frontier Corp 290 8,809 1,300 39,488
Glenayre Technologies Inc 650 4,388 650 4,388
Global TeleSystems Group Inc 200 6,275 500 16,000
GTE Corp 1,466 73,299 7,143 357,149
Hong Kong Telecommunications
Ltd ADR (Hong Kong) 9,762 161,682 34,944 578,759
ICG Communications Inc 200 3,575 600 10,763
IXC Communications Inc 0 -- 100 2,450
Loral Space & Communications 842 13,367 2,582 40,989
Lucent Technologies Inc 1,938 137,355 9,808 695,141
MCI Communications Corp 994 49,700 5,797 289,850
McLeod Inc Class A 200 5,800 500 14,500
NEXTEL Communications Class
A+ 368 6,647 2,180 39,376
Nippon Telegraph & Telegraph
ADR (Japan) 1,824 68,285 6,939 259,779
Nokia Corp 506 33,807 1,788 119,461
Northern Telecom Ltd 802 38,296 3,874 184,984
Omnipoint Corp 200 2,200 300 3,300
Paging Network Inc 500 3,625 700 5,075
Pairgain Technologies Inc 0 -- 600 5,288
Pan Am Sat Corp 0 -- 200 8,475
Picturetel Corp 400 2,350 400 2,350
Qualcom Inc 300 13,181 900 39,544
Qwest Communications
International Inc 700 17,456 1,800 45,000
SBC Communication Inc 2,706 102,827 13,672 519,535
Scientific-Atlanta Inc 85 1,503 684 12,098
SkyTel Communications Inc+ 0 -- 400 5,250
</TABLE>
154
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,659 $ 24,574 1,415 $ 20,960 3,373 $ 49,963
3,500 122,500 3,110 108,850 7,460 261,100
0 -- 0 -- 1,100 26,194
33,383 1,673,302 29,101 1,458,667 56,461 2,830,102
27,002 1,191,462 23,788 1,049,645 58,694 2,589,872
18,213 1,248,728 16,690 1,144,307 32,049 2,197,359
15,243 1,950,150 15,012 1,920,597 27,469 3,514,314
1,242 56,356 0 -- 0 --
1,300 36,563 1,200 33,750 2,700 75,938
1,419 30,952 1,414 30,843 2,890 63,038
1,794 75,348 1,627 68,334 3,549 149,058
32,515 780,360 31,944 766,655 58,501 1,404,023
2,139 51,603 2,076 50,083 3,737 90,155
0 -- 600 6,863 1,000 11,438
17,574 375,644 17,356 370,985 31,610 675,664
1,700 34,319 1,600 32,300 3,300 66,619
807 16,443 802 16,341 1,780 36,268
3,037 92,249 2,654 80,615 5,422 164,693
1,175 7,931 800 5,400 1,425 9,619
900 28,800 900 28,800 1,900 60,800
16,762 838,100 14,729 736,450 36,397 1,819,849
77,475 1,283,179 76,335 1,264,297 140,241 2,322,741
1,100 19,731 1,100 19,731 2,300 41,256
300 7,350 200 4,900 400 9,800
4,912 77,978 4,674 74,200 9,966 158,210
22,798 1,615,807 20,032 1,419,767 49,604 3,515,683
13,302 665,100 12,159 607,950 22,899 1,144,950
900 26,100 900 26,100 1,800 52,200
4,988 90,096 4,701 84,912 9,525 172,045
16,460 616,221 15,758 589,940 30,174 1,129,639
3,866 258,297 3,852 257,362 7,002 467,821
9,060 432,615 7,948 379,517 19,672 939,338
400 4,400 400 4,400 600 6,600
1,500 10,875 1,300 9,425 2,900 21,025
1,300 11,456 1,200 10,575 2,600 22,913
300 12,713 300 12,713 700 29,663
700 4,113 500 2,938 800 4,700
1,700 74,694 1,600 70,300 3,400 149,388
3,499 87,475 3,300 82,500 7,000 175,000
32,030 1,217,139 28,152 1,069,775 69,450 2,639,099
1,559 27,575 1,365 24,143 2,554 45,174
0 -- 0 -- 0 --
</TABLE>
155
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Southern New England
Telecommu 0 $ -- 0 $ --
Sprint Corp 595 39,902 3,423 229,555
Tel-Save Holdings Inc 0 -- 500 7,500
Tele Danmark A/S ADR
(Denmark) 1,409 72,563 5,078 261,517
Tele-Communications TCI
Ventures Group Class A 1,816 30,191 5,490 91,271
Telecommunications of New
Zealand Corp ADR (New
Zealand) 969 29,070 3,458 103,740
Telefonica de Espana SA ADR
(Spain) 508 55,436 1,825 199,153
Telephone & Data System Inc 0 -- 0 --
Tellabs Inc+ 257 10,858 1,381 58,347
U.S. West Inc 689 35,828 4,078 212,071
Vanguard Cellular Systems
Class A 411 7,706 330 6,188
Vodafone Group PLC ADR (UK) 908 114,067 3,182 399,738
Western Wireless Corp Class
A 0 -- 100 1,563
WorldCom Inc+ 1,444 59,114 8,291 339,412
------------ ------------
TOTAL TELECOMMUNICATIONS
- VALUE $ 2,243,184 $ 9,727,046
- COST $ 1,753,983 $ 7,042,104
TEXTILES
PERCENT OF NET ASSETS 0.05% 0.05%
Brown Group Inc 31 $ 457 180 $ 2,655
Burlington Industries Inc 729 6,926 477 4,532
Cintas Corp 420 17,115 900 36,675
Collins & Aikman Corp 0 -- 0 --
Shaw Industries Inc 1,260 19,058 1,630 24,654
Springs Industries Inc Class
A 33 1,091 195 6,447
Unifi Inc 268 5,963 800 17,800
West Point Stevens Inc 200 5,900 600 17,775
------------ ------------
TOTAL TEXTILES
- VALUE $ 56,510 $ 110,538
- COST $ 52,183 $ 114,687
TOBACCO
PERCENT OF NET ASSETS 0.23% 0.55%
BAT Industries PLC ADR (UK) 4,303 $ 80,680 15,554 $ 291,638
Fortune Brands Inc 260 7,166 1,416 39,029
Philip Morris Co Inc 3,481 144,678 18,097 752,156
Swedish Match AB ADR
(Sweden) 552 17,112 2,102 65,162
Swedish Match AB ADR
(Sweden) 0 -- 2 --
------------ ------------
TOTAL TOBACCO
- VALUE $ 249,636 $ 1,147,985
- COST $ 228,564 $ 952,678
</TABLE>
156
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
975 $ 63,192 0 $ -- 0 $ --
7,930 531,806 7,239 485,465 14,081 944,307
900 13,500 600 9,000 1,900 28,500
11,291 581,487 11,116 572,474 20,228 1,041,742
10,502 174,596 9,968 165,718 23,096 383,971
7,783 233,490 7,648 229,440 13,938 418,140
4,043 441,192 3,929 428,752 7,200 785,700
827 27,394 0 -- 0 --
3,217 135,918 2,856 120,666 7,388 312,143
9,250 481,000 8,387 436,118 16,360 850,720
595 11,156 427 8,006 390 7,313
7,096 891,435 6,909 867,942 12,702 1,595,688
0 -- 0 -- 300 4,688
18,975 776,789 17,380 711,494 33,221 1,359,984
------------ ------------ ------------
$ 22,120,327 $ 20,275,251 $ 41,929,661
$ 15,710,932 $ 14,851,686 $ 31,825,477
0.07% 0.09% 0.11%
338 $ 4,986 221 $ 3,260 253 $ 3,732
1,136 10,792 749 7,116 1,902 18,069
1,740 70,905 1,730 70,498 3,580 145,885
0 -- 0 -- 400 2,600
3,015 45,602 2,905 43,938 6,200 93,775
403 13,324 319 10,547 650 21,491
1,582 35,200 1,482 32,974 3,140 69,865
1,100 32,588 1,100 32,588 2,300 68,138
------------ ------------ ------------
$ 213,397 $ 200,921 $ 423,555
$ 216,631 $ 208,452 $ 457,694
0.85% 1.07% 1.38%
34,608 $ 648,900 34,081 $ 639,019 62,406 $ 1,170,113
3,194 88,035 2,994 82,522 5,592 154,129
42,259 1,756,389 37,208 1,546,457 91,862 3,818,013
4,727 146,537 4,655 144,305 8,593 266,383
7 -- 11 -- 1 --
------------ ------------ ------------
$ 2,639,861 $ 2,412,303 $ 5,408,638
$ 2,187,574 $ 2,009,236 $ 4,761,108
</TABLE>
157
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
TRANSPORTATION
PERCENT OF NET ASSETS 0.19% 0.34%
Alexander & Baldwin Inc 204 $ 4,794 590 $ 13,865
Burlington Northern Santa Fe 196 18,240 1,313 122,191
Canadian National Railway Co 4 180 6 285
Carnival Corp Class A 1,400 40,425 4,000 115,500
CNF Transportation Inc 262 8,188 661 20,656
Consolidated Freightways
Corp 31 271 181 1,584
CSX Corp 277 10,457 1,813 68,441
Fritz Companies Inc 200 1,600 200 1,600
Galileo International Inc 200 6,538 500 16,344
Hunt (J B) Transport
Services 0 -- 0 --
Kansas City Southern
Industries 543 17,851 1,610 52,929
Laidlaw Inc Class B 495 4,269 2,679 23,106
Norfolk Southern Corp 592 16,687 3,000 84,563
Overseas Shipholding Group 393 5,600 310 4,418
Pittston Brink's Group 323 10,134 620 19,453
Pittston Burlington Group 61 484 160 1,270
Roadway Express Inc 46 696 158 2,390
Tidewater Inc 365 7,665 750 15,750
Trinity Industries Inc 322 9,741 640 19,360
Union Pacific Corp 368 14,651 2,039 81,178
Viad Corp 436 9,047 1,280 26,560
Wisconsin Central Transport 400 5,025 700 8,794
Xtra Corp 200 11,775 200 11,775
Yellow Corp 49 585 223 2,662
------------ ------------
TOTAL TRANSPORTATION
- VALUE $ 204,903 $ 714,674
- COST $ 232,803 $ 758,508
UTILITIES
PERCENT OF NET ASSETS 0.38% 0.92%
AES Corp+ 0 $ -- 0 $ --
Allegheny Energy Inc 0 -- 0 --
Ameren Corp 208 8,229 1,097 43,400
American Electric Power Inc 306 13,847 1,550 70,138
American Water Works Co Inc 300 8,250 900 24,750
Baltimore Gas & Electric Co 237 7,303 1,179 36,328
Calenergy Inc+ 0 -- 0 --
Carolina Power & Light Co 263 11,325 1,183 50,943
Central & South West Corp 340 8,883 1,698 44,360
Cinergy Corp 227 7,888 1,227 42,638
Conectiv Inc 1,067 21,740 855 17,421
Consolidated Edison Inc 345 16,323 1,944 91,976
Dominion Resources Inc 278 11,589 1,545 64,407
</TABLE>
158
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0.48% 0.61% 0.71%
1,114 $ 26,179 1,109 $ 26,062 2,280 $ 53,580
2,929 272,580 2,685 249,873 5,134 477,783
12 541 11 24 1,082
7,600 219,450 7,200 207,900 15,400 444,675
1,310 40,937 1,273 39,781 2,638 82,438
405 3,544 286 2,503 569 4,979
4,043 152,623 3,783 142,808 7,177 270,932
300 2,400 0 -- 400 3,200
1,000 32,688 900 29,419 2,000 65,375
596 10,095 0 -- 0 --
2,995 98,461 2,855 93,858 6,080 199,880
5,933 51,172 5,652 48,749 10,412 89,804
6,946 195,790 6,543 184,431 12,357 348,313
550 7,837 405 5,771 375 5,344
1,157 36,301 1,143 35,862 2,304 72,288
328 2,604 221 1,754 402 3,191
270 4,084 243 3,675 359 5,430
1,525 32,025 1,485 31,185 3,265 68,565
1,205 36,451 1,135 34,334 2,305 69,726
4,505 179,355 4,158 165,540 8,035 319,893
2,441 50,651 2,328 48,306 5,008 103,916
1,400 17,588 1,300 16,331 2,800 35,175
300 17,663 200 11,775 500 29,438
585 6,983 299 3,569 437 5,217
------------ ------------ ------------
$ 1,498,002 $ 1,383,982 $ 2,760,224
$ 1,558,955 $ 1,454,028 $ 3,155,232
1.72% 1.76% 1.91%
2,296 $ 62,566 0 $ -- 0 $ --
1,809 48,165 0 -- 0 --
2,536 100,331 2,410 95,346 4,405 174,273
3,501 158,420 3,250 147,063 6,220 281,455
1,800 49,500 1,700 46,750 3,600 99,000
2,668 82,208 2,589 79,774 4,887 150,581
900 22,894 0 -- 0 --
2,824 121,609 2,584 111,274 4,954 213,332
3,820 99,798 3,677 96,062 6,978 182,300
2,986 103,764 2,746 95,424 5,214 181,187
1,525 31,072 1,090 22,209 1,027 20,925
4,333 205,005 4,067 192,420 7,753 366,814
3,604 150,242 3,349 139,611 6,311 263,090
</TABLE>
159
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
DTE Energy Co 238 $ 10,026 1,130 $ 47,601
Duke Power Co 451 28,131 2,890 180,264
Edison International 527 14,987 2,933 83,407
El Paso Energy Corp 0 -- 0 --
Energy East Corp 0 -- 0 --
Entergy Corp 340 9,796 1,936 55,781
FirstEnergy Corp 350 10,106 1,810 52,264
Florida Progress Corp 0 -- 0 --
FPL Group Inc 241 16,042 1,428 95,051
GPU Inc 242 9,090 1,073 40,305
Hawaiian Electric Industries
Inc 192 7,212 440 16,528
Houston Industries Inc 434 12,505 2,418 69,669
Idaho Power Co 0 -- 0 --
Illinova Corp 0 -- 0 --
Interstate Energy Corp 341 10,273 260 7,833
IPALCO Enterprises Inc 0 -- 0 --
Kansas City Power & Light Co 0 -- 0 --
LG & E Energy Corp 0 -- 0 --
Midamerican Energy Co 0 -- 0 --
Minnesota Power & Light Co 349 14,854 270 11,492
Montana Power Co 0 -- 0 --
National Power ADR (UK) 828 25,979 2,900 90,988
Nevada Power Co 444 11,017 360 8,933
New Century Energies Inc 0 -- 0 --
New England Electric System 0 -- 0 --
Niagara Mohawk Power Corp+ 131 2,031 1,497 23,204
NIPSCO Industries Inc 0 -- 0 --
Northeast Utilities+ 0 -- 0 --
Northern States Power Co 140 3,710 1,180 31,270
OGE Energy Corp 0 -- 0 --
Pacificorp 507 11,439 2,393 53,992
PECO Energy Co 322 11,029 1,788 61,239
PG & E Corp 556 17,862 3,120 100,230
Pinnacle West Capital Corp 0 -- 0 --
Potomac Electric Power Co 0 -- 0 --
PP & L Resources Inc 257 6,056 1,370 32,281
Public Service Company Of
New 0 -- 0 --
Puget Sound Power & Light Co 0 -- 0 --
SCANA Corp 0 -- 0 --
Sempra Energy+ 229 5,814 1,959 49,824
Southern Co 1,015 28,547 5,570 156,656
TECO Energy Inc 0 -- 0 --
Texas Utilities Co 351 14,918 2,264 96,220
</TABLE>
160
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,643 $ 111,336 2,547 $ 107,292 4,721 $ 198,872
6,626 413,297 6,049 377,306 11,801 736,087
6,587 187,318 6,115 173,895 12,382 352,113
1,684 41,784 0 -- 0 --
1,087 48,915 0 -- 0 --
4,475 128,936 4,234 121,992 8,009 230,759
4,250 122,719 4,015 115,933 7,420 214,252
1,434 60,497 0 -- 0 --
3,344 222,585 3,130 208,341 5,989 398,643
2,342 87,971 2,181 81,924 4,067 152,767
823 30,914 803 30,163 1,780 66,861
5,464 157,431 4,880 140,605 9,322 268,590
585 17,806 0 -- 0 --
1,153 29,762 0 -- 0 --
473 14,249 343 10,333 667 20,093
882 38,808 0 -- 0 --
955 27,158 0 -- 0 --
992 25,420 0 -- 0 --
680 16,873 0 -- 0 --
480 20,430 350 14,897 335 14,258
824 32,136 0 -- 0 --
6,411 201,145 6,356 199,420 11,558 362,632
652 16,178 472 11,712 450 11,166
1,535 70,802 0 -- 0 --
1,008 40,698 0 -- 0 --
3,427 53,119 2,486 38,533 4,609 71,439
2,030 59,378 0 -- 0 --
1,916 28,740 0 -- 0 --
2,694 71,391 2,586 68,529 4,748 125,822
1,224 33,737 0 -- 0 --
5,405 121,950 5,116 115,430 9,774 220,526
4,107 140,665 3,830 131,178 7,287 249,580
6,984 224,361 6,526 209,648 12,372 397,451
1,334 57,612 0 -- 0 --
1,806 44,247 0 -- 0 --
3,082 72,620 2,923 68,873 5,427 127,874
650 13,000 470 9,400 0 --
971 24,396 0 -- 0 --
1,446 44,374 0 -- 0 --
4,349 110,626 2,159 54,931 4,015 102,135
12,855 361,547 11,751 330,497 22,665 637,453
1,789 47,520 0 -- 0 --
5,158 219,215 4,336 184,280 7,986 339,405
</TABLE>
161
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Unicom Corp 308 $ 10,973 1,744 $ 62,130
Wisconsin Energy Corp 0 -- 0 --
------------ ------------
TOTAL UTILITIES
- VALUE $ 407,774 $ 1,913,523
- COST $ 354,663 $ 1,608,261
</TABLE>
162
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,987 $ 142,037 3,784 $ 134,805 7,157 $ 254,968
1,645 47,808 0 -- 0 --
------------ ------------ ------------
$ 5,319,085 $ 3,965,850 $ 7,486,703
$ 4,232,081 $ 3,243,571 $ 6,318,154
</TABLE>
163
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------
WARRANTS
PERCENT OF NET ASSETS 0.00% 0.00%
Morrison Knudsen Corp
expires 03/11/2003 4 $ 14 17 $ 61
Edison Brothers Stores
Warrant+ 0 -- 0 --
Golden State Bancorp
Warrants 200 856 500 2,250
Petrofina SA Warrants 0 -- 100 431
------------ ------------
TOTAL WARRANTS
- VALUE $ 870 $ 2,742
- COST $ 1,154 $ 2,258
TOTAL COMMON STOCKS
- VALUE $ 20,723,975 $ 89,698,253
- COST $ 18,974,047 $ 74,922,173
</TABLE>
164
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0.00% 0.00% 0.00%
27 $ 96 25 $ 89 42 $ 150
16 17 0 -- 0 --
800 3,425 900 4,050 1,900 8,134
100 431 100 431 200 863
------------ ------------ ------------
$ 3,969 $ 4,570 $ 9,147
$ 9,202 $ 4,845 $ 7,982
$202,815,509 $184,582,142 $390,440,537
$165,619,840 $154,050,654 $345,521,785
</TABLE>
165
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
U.S. TREASURY SECURITIES
PERCENT OF NET ASSETS 52.09% 44.49%
U.S. TREASURY BONDS
PERCENT OF NET ASSETS 11.30% 5.59%
U.S. Treasury Bonds, 6.00%-
13.75%, 05/15/01-11/15/27 $ 9,550,000 $ 12,223,274 $ 8,950,000 $ 11,630,836
------------ ------------
TOTAL U.S. TREASURY BONDS
- VALUE $ 12,223,274 $ 11,630,836
- COST $ 11,881,077 $ 11,202,835
U.S. TREASURY NOTES
PERCENT OF NET ASSETS 40.79% 38.90%
U.S. Treasury Notes, 5.25%-
8.75%, 08/31/99-05/15/08 $42,300,000 $ 44,131,163 $77,370,000 $ 80,933,282
------------ ------------
TOTAL U.S. TREASURY NOTES
- VALUE $ 44,131,163 $ 80,933,282
- COST $ 42,917,294 $ 78,487,159
TOTAL U.S. TREASURY
SECURITIES
- VALUE $ 56,354,437 $ 92,564,118
- COST $ 54,798,371 $ 89,689,994
</TABLE>
166
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
27.35% 15.11% 0.00%
5.74% 14.23% 0.00%
$13,850,000 $ 17,804,120 $24,440,000 $ 32,100,652 $ 0 $ 0
------------ ------------ ------------
$ 17,804,120 $ 32,100,652 --
$ 16,223,048 $ 28,643,553 --
21.60% 0.88% 0.00%
$63,855,000 $ 66,994,910 $ 1,850,000 $ 1,988,874 $ 0 $ 0
------------ ------------ ------------
$ 66,994,910 $ 1,988,874 --
$ 65,013,445 $ 1,933,595 --
$ 84,799,030 $ 34,089,526 --
$ 81,236,493 $ 30,577,148 --
</TABLE>
167
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
SHORT TERM INSTRUMENTS
PERCENT OF NET ASSETS 44.70% 22.53%
CASH EQUIVALENTS
PERCENT OF NET ASSETS 7.31% 6.37%
Dreyfus Institutional Money
Market Fund++ 1,705,753 $ 1,705,753 1,653,903 $ 1,653,903
Janus Institutional Money
Market Fund++ 3,700,000 3,700,000 1,600,000 1,600,000
Merrimac Cash Fund--Premium
Class++ 2,500,000 2,500,000 10,000,000 10,000,000
------------ ------------
TOTAL CASH EQUIVALENTS
- VALUE $ 7,905,753 $ 13,253,903
- COST $ 7,905,753 $ 13,253,903
</TABLE>
168
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
19.72% 13.37% 10.77%
6.68% 6.52% 5.69%
119,302 $ 119,302 1,008,395 $ 1,008,395 1,280,462 $ 1,280,462
5,200,000 5,200,000 3,700,000 3,700,000 2,000,000 2,000,000
15,400,000 15,400,000 10,000,000 10,000,000 19,000,000 19,000,000
------------ ------------ ------------
$ 20,719,302 $ 14,708,395 $ 22,280,462
$ 20,719,302 $ 14,708,395 $ 22,280,462
</TABLE>
169
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------
SHORT TERM INSTRUMENTS (CONTINUED)
REPURCHASE AGREEMENTS
PERCENT OF NET ASSETS 9.24% 4.33%
Goldman Sachs Repurchase
Agreements, dated
8/31/98, due 9/2/98,
with a maturity value
of $66,031,845 and an
effective yield of
5.79%, collateralized
by Federal Home Loan
Mortgage Corporation
obligations and Federal
National Mortgage
Association obligations
with rates ranging from
6.60% to 7.00%, with
maturity dates ranging
from 2/1/28 to 6/1/36
and with an aggregate
market value of
$67,320,000.++ $10,000,000 $ 10,000,000 $ 9,000,000 $ 9,000,000
------------ ------------
TOTAL REPURCHASE
AGREEMENTS
- VALUE $ 10,000,000 $ 9,000,000
- COST $ 10,000,000 $ 9,000,000
U.S. TREASURY BILLS
PERCENT OF NET ASSETS 28.15% 11.83%
U.S. Treasury Bills,
4.37%-- 5.28%*,
09/03/98--11/12/98 $30,645,000 $ 30,455,756 $24,755,000 $ 24,616,385
------------ ------------
TOTAL U.S. TREASURY
BILLS
- VALUE $ 30,455,756 $ 24,616,385
- COST $ 30,455,510 $ 24,616,712
TOTAL SHORT TERM
INSTRUMENTS
- VALUE $ 48,361,509 $ 46,870,288
- COST $ 48,361,263 $ 46,870,615
TOTAL INVESTMENT IN
SECURITIES
(NOTES 1 AND 3) - VALUE $125,439,921 $229,132,659
- COST** $122,133,681 $211,482,782
------------ ------------
TOTAL INVESTMENT IN
SECURITIES 115.95% $125,439,921 110.13% $229,132,659
Other Assets and
Liabilites, Net (15.95)% (17,256,386) (10.13)% (21,065,102)
----------- ------------ ----------- ------------
TOTAL NET ASSETS 100.00% $108,183,535 100.00% $208,067,557
=========== ============ ----------- ============
Gross Unrealized
Appreciation $ 5,823,672 $ 24,902,218
Gross Unrealized
Depreciation (2,517,432) (7,252,341)
------------ ------------
GROSS UNREALIZED
APPRECIATION $ 3,306,240 $ 17,649,877
============ ============
</TABLE>
+ Non-income earning securities.
++ Represents collateral received from securities lending transactions. See
Note 4.
* Yield to Maturity.
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
The accompanying notes are an integral part of these financial statements.
170
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
6.13% 3.99% 4.85%
$19,000,000 $ 19,000,000 $ 9,000,000 $ 9,000,000 $19,000,000 $ 19,000,000
------------ ------------ ------------
$ 19,000,000 $ 9,000,000 $ 19,000,000
$ 19,000,000 $ 9,000,000 $ 19,000,000
6.91% 2.86% 0.23%
$21,593,000 $ 21,425,646 $ 6,483,000 6,439,721 $ 907,000 $ 902,911
------------ ------------ ------------
$ 21,425,646 $ 6,439,721 $ 902,911
$ 21,425,453 $ 6,439,670 $ 902,898
$ 61,144,948 $ 30,148,116 $ 42,183,373
$ 61,144,755 $ 30,148,065 $ 42,183,360
$348,759,487 $248,819,784 $432,623,910
$308,001,088 $214,775,867 $387,705,145
------------ ------------ ------------
112.48% $348,759,487 110.33% $248,819,784 110.50% $432,623,910
(12.48)% (38,701,499) (10.33)% (23,301,346) (10.50)% (41,122,534)
- ----------- ------------ ----------- ------------ ----------- ------------
100.00% $310,057,988 100.00% $225,518,438 100.00% $391,501,376
=========== ============ =========== ============ =========== ============
$ 55,825,734 $ 48,247,767 $ 77,725,869
(15,067,335) (14,203,850) (32,807,104)
------------ ------------ ------------
$ 40,758,399 $ 34,043,917 $ 44,918,765
============ ============ ============
</TABLE>
171
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS-97.23%
ADVERTISING-0.10%
Omnicom Group 47,683 $ 2,270,903
--------------
TOTAL ADVERTISING
- VALUE $ 2,270,903
- COST $ 1,915,517
AEROSPACE & DEFENSE-1.44%
Allied Signal Inc 165,531 $ 5,679,748
Boeing Co 293,540 9,081,394
Briggs & Stratton Corp 7,318 269,394
General Dynamics Corp 36,926 1,756,293
Lockheed Martin Corp 57,061 4,989,271
Northrop Grumman Corp 19,543 1,238,538
Rockwell International Corp 58,867 2,133,929
Textron Inc 48,199 3,024,487
United Technologies Corp 68,350 4,959,647
--------------
TOTAL AEROSPACE & DEFENSE
- VALUE $ 33,132,701
- COST $ 29,281,270
AIRLINES-0.47%
AMR Corp 53,554 $ 2,918,693
Delta Air Lines Inc 21,958 2,239,716
FDX Corp+ 43,035 2,154,440
Southwest Airlines Co 97,032 1,728,383
USAirways Group Inc+ 29,636 1,726,297
--------------
TOTAL AIRLINES
- VALUE $ 10,767,529
- COST $ 8,364,122
APPAREL-0.43%
CVS Corp 112,230 $ 4,082,366
Fruit of the Loom Inc Class A+ 21,551 483,551
Liz Claiborne Inc 19,491 555,494
Nike Inc Class B 85,234 2,956,554
Reebok International Ltd+ 16,540 267,741
Russell Corp 10,649 336,775
VF Corp 35,770 1,354,789
--------------
TOTAL APPAREL
- VALUE $ 10,037,270
- COST $ 8,778,811
</TABLE>
172
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX--MASTER PORTFOLIO--AUGUST 31,
1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
AUTO PARTS & EQUIPMENT-0.67%
Cooper Tire & Rubber Co 23,034 $ 368,544
Dana Corp 48,018 1,881,710
Deluxe Corp 23,823 690,867
Eaton Corp 22,471 1,315,958
Genuine Parts Co 52,513 1,644,314
Goodyear Tire & Rubber Co 45,834 2,245,866
Illinois Tool Works Inc 73,157 3,543,542
ITT Industries Inc 34,697 1,045,247
Navistar International Corp+ 21,104 443,184
PACCAR Inc 22,817 935,497
Pep Boys-Manny Moe & Jack 18,510 271,866
TRW Inc 36,031 1,544,829
--------------
TOTAL AUTO PARTS & EQUIPMENT
- VALUE $ 15,931,424
- COST $ 14,443,066
AUTOMOBILES-1.53%
Chrysler Corp 190,202 $ 8,487,764
Ford Motor Co 355,722 15,651,768
General Motors Corp Class A 195,827 11,309,009
--------------
TOTAL AUTOMOBILES
- VALUE $ 35,448,541
- COST $ 25,251,369
BANK & FINANCE-11.42%
Ahmanson (H F) & Co 32,104 $ 1,711,545
American Express Corp 136,251 10,627,578
Associates First Capital Corp 101,625 6,008,578
Banc One Corp 205,778 7,819,564
Bank of New York Inc 220,984 5,345,051
BankAmerica Corp 199,870 12,804,172
BankBoston Corp 85,324 3,045,000
Bankers Trust Corp 28,701 2,132,843
BB&T Corp 83,436 2,351,852
Bear Stearns Co Inc 33,209 1,226,657
Capital One Financial Corp 19,141 1,674,838
Chase Manhattan Bank 250,048 13,252,544
Citicorp 132,197 14,293,801
Comerica Inc 46,131 2,410,345
Countrywide Credit Industries Inc 31,790 1,190,138
Equifax Inc 44,097 1,570,956
</TABLE>
173
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Federal Home Loan Mortgage Corp 198,600 $ 7,844,700
Federal National Mortgage Assoc 303,801 17,259,694
Fifth Third Bancorp 77,071 4,099,214
First Chicago NBD Corp 85,318 5,407,028
First Union Corp 283,860 13,767,210
Fleet Financial Group Inc 83,240 5,457,423
Franklin Resources Inc 74,154 2,391,467
Golden West Financial 16,720 1,272,810
Household International Inc 142,170 5,251,404
Huntington Bancshares Inc 61,550 1,400,263
Keycorp 128,908 3,287,154
Lehman Brothers Holdings 34,790 1,369,856
MBNA Corp 147,057 3,455,840
Mellon Bank Corp 74,787 3,888,924
Mercantile Bancorp 44,439 1,952,539
Merrill Lynch & Co Inc 101,301 6,685,866
MGIC Investment Corp 33,371 1,384,897
Morgan (J P) & Co Inc 52,106 4,845,858
Morgan Stanley Dean Witter 175,983 10,218,013
National City Corp 96,358 5,661,033
NationsBank Corp 280,620 15,995,326
Northern Trust Corp 32,706 1,823,360
Norwest Corp 221,507 6,589,833
PNC Bank Corp 89,504 3,848,672
Regions Financial Corp 96,740 3,349,623
Republic New York Corp 32,088 1,323,630
Ryder System Inc 22,592 532,324
Schwab (Charles) Corp 77,888 2,326,904
SLM Holding Corp 49,687 1,782,521
State Street Boston Corp 47,194 2,457,038
Summit Bancorp 51,628 1,761,806
SunTrust Banks Inc 61,918 3,467,408
Synovus Financial Corp 77,022 1,400,838
U.S. Bancorp 216,120 7,375,095
Wachovia Corp 60,330 4,422,943
Washington Mutual Inc 113,372 3,627,904
Wells Fargo & Co 25,408 7,161,880
--------------
TOTAL BANK & FINANCE
- VALUE $ 263,613,760
- COST $ 202,484,993
</TABLE>
174
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX--MASTER PORTFOLIO--AUGUST 31,
1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
BASIC INDUSTRIES-1.23%
ASARCO Inc 12,263 $ 195,442
Avery-Dennison Corp 34,425 1,848,192
Baker Hughes Inc 93,016 1,697,542
Bemis Co 15,479 555,309
Boise Cascade Corp 16,428 401,459
Champion International Corp 28,193 930,369
Cyprus Amax Minerals 27,269 250,534
Dover Corp 65,118 1,774,466
Fort James Corp 61,431 1,789,178
Georgia-Pacific Corp 27,137 1,163,499
Harnischfeger Industries Inc 14,128 226,931
Homestake Mining Co 59,567 528,657
Ikon Office Solutions Inc 39,452 219,452
Inco Ltd 48,906 409,588
Louisiana-Pacific Corp 32,011 604,208
Mead Corp 30,680 839,865
Minnesota Mining & Manufacturing Co 119,852 8,209,862
NACCO Industries Inc Class A 2,426 231,077
Newmont Mining Corp 45,722 625,820
Potlatch Corp 8,446 277,662
Sealed Air Corp+ 24,187 870,732
Stone Container Corp+ 28,996 302,646
Union Camp Corp 20,381 755,371
Westvaco Corp 29,899 627,879
Weyerhauser Co 58,599 2,201,125
Willamette Industries Inc 32,534 801,150
--------------
TOTAL BASIC INDUSTRIES
- VALUE $ 28,338,015
- COST $ 34,496,891
BEVERAGES-3.01%
Anheuser-Busch Inc 143,659 $ 6,626,271
Coca-Cola Co 722,817 47,073,457
Coors (Adolph) Co Class B 10,757 443,726
Diageo PLC ADR (UK) 17 643
Pepsico Inc 436,973 12,098,690
Seagrams Co Ltd 104,377 3,222,640
--------------
TOTAL BEVERAGES
- VALUE $ 69,465,427
- COST $ 49,006,513
</TABLE>
175
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
BROADCASTING-1.01%
Clear Channel Communications Inc 72,442 $ 3,259,890
Kingworld Productions 21,594 453,474
MediaOne Group Inc+ 178,050 7,300,050
Tele-Communications Inc Class A+ 148,679 4,906,407
Tribune Co 36,041 2,322,392
Viacom Inc Class B+ 103,615 5,141,894
--------------
TOTAL BROADCASTING
- VALUE $ 23,384,107
- COST $ 15,105,005
BUILDING MATERIALS & SERVICES-0.40%
Cooper Industries Inc 35,499 $ 1,510,926
Corning Inc 67,759 1,668,565
Owens Corning Fiberglass Corp 15,591 546,659
Owens Illinois Inc+ 45,257 1,411,453
PPG Industries Inc 52,260 2,655,461
Snap-On Inc 17,744 465,780
Stanley Works 26,204 1,031,783
--------------
TOTAL BUILDING MATERIALS & SERVICES
- VALUE $ 9,290,627
- COST $ 9,867,902
BUSINESS SERVICES-0.22%
Cendant Corp+ 249,382 $ 2,883,479
Dun & Bradstreet Corp 49,942 1,173,637
Ecolab Inc 37,764 1,050,311
--------------
TOTAL BUSINESS SERVICES
- VALUE $ 5,107,427
- COST $ 7,947,131
CHEMICALS-2.27%
Air Products & Chemicals Inc 69,090 $ 2,111,563
Clorox Co 30,311 2,923,117
Dow Chemical Co 66,606 5,195,268
Du Pont (E I) De Nemours 331,932 19,148,327
Eastman Chemical Co 23,000 1,185,938
FMC Corp+ 10,719 554,708
Goodrich (B F) Co 21,055 569,801
Great Lakes Chemical Corp 17,512 685,157
Hercules Inc 28,154 719,687
</TABLE>
176
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX--MASTER PORTFOLIO--AUGUST 31,
1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
International Flavor & Fragrances 31,977 $ 1,239,109
Monsanto Co 174,041 9,517,867
Morton International Inc 38,062 846,880
Nalco Chemical Co 19,418 561,908
Praxair Inc 46,198 1,657,353
Rohm & Haas Co 18,017 1,555,092
Rubbermaid Inc 43,816 1,114,570
Sigma-Aldrich Corp 29,422 816,461
Union Carbide Corp 39,916 1,604,124
W.R. Grace Co+ 21,646 278,692
--------------
TOTAL CHEMICALS
- VALUE $ 52,285,622
- COST $ 41,564,909
COMPUTER SOFTWARE-4.88%
3Com Corp+ 104,053 $ 2,464,755
Adobe Systems Inc 19,936 523,320
Autodesk Inc 13,622 318,414
Automatic Data Processing 87,809 5,597,824
Bay Networks Inc+ 64,338 1,930,140
Ceridian Corp+ 21,204 1,028,394
Computer Associates International Inc 160,145 4,323,915
Computer Sciences Corp 45,694 2,584,567
Electronic Data Systems Corp 143,773 4,816,396
First Data Corp 125,931 2,605,198
HBO & Co 123,852 2,631,855
IMS Health Inc 47,642 2,620,310
Microsoft Corp 722,064 69,273,015
Novell Inc+ 102,925 977,788
Oracle Systems Corp+ 288,337 5,748,719
Parametric Technology Corp 75,622 775,126
Sun Microsystems Inc+ 110,761 4,388,905
--------------
TOTAL COMPUTER SOFTWARE
- VALUE $ 112,608,641
- COST $ 70,577,710
COMPUTER SYSTEMS-5.09%
Apple Computer Inc+ 38,905 $ 1,213,350
Cabletron Systems Inc+ 46,284 323,988
Cisco Systems Inc 300,012 24,563,483
Compaq Computer Corp 484,925 13,547,592
</TABLE>
177
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Data General Corp+ 14,271 $ 107,033
Dell Computer Corp 188,542 18,854,200
EMC Corp 145,447 6,572,386
Gateway 2000 Inc+ 45,481 2,151,820
Harris Corp 23,429 746,799
Hewlett-Packard Co 305,138 14,818,264
International Business Machine Corp 276,292 31,117,387
Seagate Technology Inc+ 71,372 1,249,010
Shared Medical System Corp 7,773 414,884
Silicon Graphics Inc+ 54,959 498,066
Unisys Corp+ 73,162 1,312,343
--------------
TOTAL COMPUTER SYSTEMS
- VALUE $ 117,490,605
- COST $ 62,768,592
CONTAINER & PACKAGING-0.33%
Ball Corp 8,790 $ 328,526
Crown Cork & Seal Co 37,617 1,231,957
International Paper Co 88,752 3,283,824
Temple-Inland Inc 16,610 744,336
Tenneco Inc 50,027 1,585,231
Tupperware Corp 17,809 336,145
--------------
TOTAL CONTAINER & PACKAGING
- VALUE $ 7,510,019
- COST $ 9,159,695
ELECTRICAL EQUIPMENT-3.87%
Aeroquip-Vickers Inc 8,236 $ 332,014
General Electric Co 954,607 76,368,560
Grainger (W W) Inc 29,090 1,139,964
Masco Corp 97,098 2,233,254
Motorola Inc 175,136 7,541,794
National Service Industries Inc 12,574 468,382
Raychem Corp 25,057 726,653
Thomas & Betts Corp 16,132 549,496
--------------
TOTAL ELECTRICAL EQUIPMENT
- VALUE $ 89,360,117
- COST $ 54,454,921
</TABLE>
178
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX--MASTER PORTFOLIO--AUGUST 31,
1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ELECTRONICS-3.69%
Advanced Micro Devices+ 41,500 $ 547,281
AMP Inc 64,530 2,302,914
Applied Materials Inc 107,367 2,637,202
CBS Corp 208,684 5,425,784
Commscope Inc+ 2 27
EG&G Inc 13,229 310,055
Emerson Electric Co 130,049 7,412,793
General Instrument Corp+ 43,305 860,687
General Signal Corp 14,530 533,978
Honeywell Inc 37,301 2,331,313
Intel Corp 496,963 35,377,554
Johnson Controls Inc 24,613 1,053,744
KLA Instruments Corp+ 24,802 527,043
LSI Logic Corp+ 41,348 506,513
Micron Technology Inc+ 61,946 1,409,263
National Semiconductor+ 48,114 439,040
Perkin-Elmer Corp 14,183 820,841
Pitney Bowes Inc 80,056 3,972,779
Raytheon Co Class B 99,355 4,533,072
Tektronix Inc 14,817 225,033
Texas Instruments Inc 114,506 5,460,505
Xerox Corp 95,646 8,398,914
--------------
TOTAL ELECTRONICS
- VALUE $ 85,086,335
- COST $ 62,522,153
ENERGY & RELATED-7.40%
Amerada Hess Corp 26,842 $ 1,318,613
Amoco Corp 285,414 12,932,822
Anadarko Petroleum Corp 35,204 1,012,115
Apache Corp 28,122 643,291
Ashland Inc 21,979 1,001,418
Atlantic Richfield Corp 94,109 5,458,322
Burlington Resources Inc 51,614 1,525,839
Chevron Corp 192,534 14,259,549
Coastal Corp 62,330 1,620,580
Columbia Gas System Inc 24,338 1,210,816
Consolidated Natural Gas Co 27,952 1,224,647
Dresser Industries Inc 51,403 1,313,989
Eastern Enterprises 5,890 233,023
</TABLE>
179
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Enron Corp 96,317 $ 4,075,413
Exxon Corp 717,008 46,919,211
Halliburton Co 76,912 2,042,975
Helmerich & Payne Inc 14,742 239,558
Kerr-McGee Corp 13,879 536,076
Mobil Corp 230,117 15,906,838
NICOR Inc 14,079 546,441
Occidental Petroleum Corp 107,663 1,991,766
ONEOK Inc 9,034 271,585
Oryx Energy Co+ 30,997 385,525
Pennzoil Co 13,915 497,461
Peoples Energy Corp 10,313 341,618
Phillips Petroleum Co 77,111 3,147,093
Rowan Co Inc+ 25,369 234,663
Royal Dutch Petroleum Corp 629,234 25,012,052
Schlumberger Ltd 145,942 6,394,084
Sonat Offshore Drilling Co 32,199 871,385
Sun Co Inc 27,598 912,459
Texaco Inc 160,615 8,924,171
Union Pacific Resources Group 74,129 634,730
Unocal Corp 72,190 2,260,449
USX-Marathon Group 84,704 2,202,304
Williams Co Inc 120,820 2,778,860
--------------
TOTAL ENERGY & RELATED
- VALUE $ 170,881,741
- COST $ 142,657,892
ENGINEERING & CONSTRUCTION-0.14%
Armstrong World Industries Inc 11,921 $ 572,208
Centex Corp 17,434 616,728
Fleetwood Enterprises Inc 10,605 354,605
Fluor Corp 24,453 967,422
Foster Wheeler Corp 11,932 146,913
Kaufman & Broad Home Corp 11,355 242,713
Pulte Corp 12,854 371,159
--------------
TOTAL ENGINEERING & CONSTRUCTION
- VALUE $ 3,271,748
- COST $ 3,486,520
</TABLE>
180
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX--MASTER PORTFOLIO--AUGUST 31,
1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ENTERTAINMENT & LEISURE-1.58%
Brunswick Corp 29,173 $ 435,772
Disney (Walt) Co 599,824 16,457,671
Harrah's Entertainment Inc+ 29,564 426,830
Hasbro Inc 39,176 1,226,699
Mattel Inc 85,265 2,760,455
Mirage Resorts Inc+ 52,654 783,228
Polaroid Corp 13,184 370,800
Time Warner Inc 173,049 13,908,813
--------------
TOTAL ENTERTAINMENT & LEISURE
- VALUE $ 36,370,268
- COST $ 27,895,425
ENVIRONMENTAL CONTROL-0.40%
Browning-Ferris Industries Inc 56,767 $ 1,844,928
Waste Management Inc+ 165,395 7,298,070
--------------
TOTAL ENVIRONMENTAL CONTROL
- VALUE $ 9,142,998
- COST $ 9,704,534
FOOD & RELATED-4.00%
Albertson's Inc 72,025 $ 3,641,764
American Stores Co 80,278 2,328,062
Archer-Daniels-Midland Co 176,028 2,640,425
Bestfoods 84,400 4,235,825
Brown-Forman Corp Class B 20,228 1,213,680
Campbell Soup Co 133,824 6,741,364
ConAgra Inc 139,476 3,452,031
Darden Restaurants Inc 44,329 687,100
General Mills Inc 46,322 3,031,196
Great Atlantic & Pacific Tea Co 11,060 263,366
Harcourt General Inc 20,804 1,010,294
Heinz (H J) Co 107,202 5,715,207
Hershey Foods Corp 41,941 2,935,870
Kellogg Co 120,553 3,676,867
Kroger Co+ 74,781 3,365,145
McDonald's Corp 202,127 11,331,745
Pioneer Hi Bred International Inc 71,664 2,418,660
Quaker Oats Co 40,598 2,156,769
Ralston-Purina Group 94,566 2,488,268
Sara Lee Corp 138,675 6,275,044
</TABLE>
181
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Super Value Inc 35,338 $ 717,803
Sysco Corp 99,756 2,013,824
Tricon Global Restaurants+ 44,559 1,651,468
Unilever NV (Netherlands) 187,912 11,908,923
UST Inc 53,937 1,409,104
Wendy's International Inc 38,543 773,269
Winn-Dixie Stores Inc 43,593 1,623,839
Wrigley (W M) Jr Co 34,143 2,646,083
--------------
TOTAL FOOD & RELATED
- VALUE $ 92,352,995
- COST $ 66,025,946
FURNITURE & APPLIANCES-0.10%
Maytag Corp 27,768 $ 1,197,495
Whirlpool Corp 22,028 1,093,140
--------------
TOTAL FURNITURE & APPLIANCES
- VALUE $ 2,290,635
- COST $ 1,865,140
HEALTHCARE-0.36%
Cardinal Health Inc 39,084 $ 3,419,850
Healthsouth Corp+ 123,311 2,335,202
St Jude Medical Inc+ 24,427 538,921
United Healthcare Corp 55,260 1,996,268
--------------
TOTAL HEALTHCARE
- VALUE $ 8,290,241
- COST $ 9,078,261
HOSPITAL & MEDICAL SUPPLIES-2.56%
ALZA Corp 24,983 $ 899,388
Bard (C R) Inc 16,650 545,288
Bausch & Lomb Inc 16,191 685,082
Baxter International Inc 82,170 4,375,553
Becton Dickinson & Co 71,534 2,382,976
Biomet Inc 32,730 879,619
Boston Scientific Corp+ 57,090 3,953,483
Columbia/HCA Healthcare Corp 189,830 4,283,040
Guidant Corp 44,232 2,731,326
Johnson & Johnson 394,650 27,230,850
Mallinckrodt Group Inc 21,361 488,633
Manor Care Inc 18,556 445,344
</TABLE>
182
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX--MASTER PORTFOLIO--AUGUST 31,
1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Medtronic Inc 137,459 $ 7,061,956
Tenet Healthcare Corp+ 89,910 2,320,802
United States Surgical 22,101 882,659
--------------
TOTAL HOSPITAL & MEDICAL SUPPLIES
- VALUE $ 59,165,999
- COST $ 40,659,343
HOUSEHOLD PRODUCTS-2.55%
Alberto-Culver Co Class B 16,644 $ 332,880
Avon Products Inc 38,683 2,432,194
Colgate-Palmolive Co 86,723 6,254,896
Gillette Co 328,710 13,518,199
Kimberly-Clark Corp 163,075 6,217,234
Procter & Gamble Co 393,837 30,128,531
--------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 58,883,934
- COST $ 39,663,317
INSURANCE-4.68%
Aetna Inc 43,500 $ 2,618,156
Allstate Corp 245,668 9,212,550
American General Corp 74,435 4,782,449
American International Group Inc 308,540 23,853,960
Aon Corp 49,190 3,077,449
Chubb Corp 49,888 3,118,000
CIGNA Corp 64,990 3,781,606
Cincinnati Financial Corp 48,341 1,625,466
Conseco Inc 91,761 2,534,898
General Re Corp 22,930 4,757,975
Hartford Financial Services Group 69,428 3,106,903
Humana Inc+ 48,136 625,768
Jefferson-Pilot Corp 31,198 1,770,487
Lincoln National Corp 29,977 2,578,022
Loews Corp 33,713 2,844,534
Marsh & McLennan Companies Inc 74,808 3,628,188
MBIA Inc 28,714 1,611,573
Progressive Corp Ohio 21,272 2,072,691
Provident Co Inc 36,542 1,315,512
Providian Financial Corp 27,812 1,785,183
SAFECO Corp 41,265 1,676,391
St Paul Co 67,801 2,072,168
Sunamerica Inc 57,254 3,546,170
</TABLE>
183
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Torchmark Corp 40,942 $ 1,463,677
Transamerica Corp 18,422 1,889,406
Travelers Inc 336,508 14,932,524
UNUM Corp 40,683 1,790,052
--------------
TOTAL INSURANCE
- VALUE $ 108,071,758
- COST $ 77,221,721
LODGING-0.16%
Hilton Hotels Corp 73,345 $ 1,521,909
Marriott International Inc Class A 74,840 2,100,197
--------------
TOTAL LODGING
- VALUE $ 3,622,106
- COST $ 3,011,315
MACHINERY-0.61%
Black & Decker Corp 27,766 $ 1,155,760
Case Corp 21,998 593,946
Caterpillar Inc 109,135 4,604,133
Cincinnati Milacron Inc 11,713 226,939
Cummins Engine Co Inc 11,080 450,818
Deere & Co 73,204 2,411,157
Ingersoll-Rand Co 48,600 1,931,850
McDermott International Inc 17,786 356,832
Pall Corp 36,837 755,159
Parker Hannifin Corp 32,620 945,980
Thermo Electron Corp+ 46,592 757,120
--------------
TOTAL MACHINERY
- VALUE $ 14,189,694
- COST $ 14,606,791
MANUFACTURING-0.41%
Tyco International Ltd 170,953 $ 9,487,892
--------------
TOTAL MANUFACTURING
- VALUE $ 9,487,892
- COST $ 7,027,843
METAL FABRICATORS-0.61%
Alcan Aluminum Ltd 66,723 $ 1,267,737
Allegheny Teledyne Inc 57,357 863,940
Aluminum Co of America 54,874 3,285,581
</TABLE>
184
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX--MASTER PORTFOLIO--AUGUST 31,
1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Armco Inc+ 31,439 $ 129,686
Barrick Gold Corp 109,378 1,421,914
Battle Mountain Gold Co 67,386 206,370
Bethlehem Steel Corp+ 37,437 269,078
Crane Co 13,436 540,799
Engelhard Corp 42,237 776,105
Freeport McMoRan Inc 56,333 654,871
Nucor Corp 25,808 927,475
Phelps Dodge Corp 17,172 768,447
Placer Dome Inc 72,356 583,370
Reynolds Metals Co 21,673 1,038,949
Timken Co 18,440 335,378
USX-U.S. Steel Group 25,225 528,148
Worthington Industries Inc 28,346 368,498
--------------
TOTAL METAL FABRICATORS
- VALUE $ 13,966,346
- COST $ 19,809,487
PHARMACEUTICALS-9.06%
Abbott Laboratories 452,662 $ 17,427,487
Allergan Inc 19,048 900,018
American Home Products Corp 384,444 19,270,256
Amgen Inc+ 77,021 4,688,653
Bristol-Myers Squibb Co 291,798 28,559,729
Lilly (Eli) & Co 325,535 21,322,543
Merck & Co Inc 351,327 40,731,974
Millipore Corp 12,823 278,099
Pfizer Inc 382,567 35,578,731
Pharmacia and Upjohn Inc 148,774 6,183,419
Schering-Plough Corp 214,896 18,481,056
Warner Lambert Co 239,707 15,640,882
--------------
TOTAL PHARMACEUTICALS
- VALUE $ 209,062,847
- COST $ 103,110,618
PUBLISHING-0.96%
American Greetings Corp Class A 21,355 $ 805,818
Comcast Corp Class A 108,055 4,038,556
Donnelley (R R) & Sons Co 42,569 1,543,126
Dow Jones & Co Inc 28,163 1,402,869
Gannett Co Inc 83,214 4,909,626
</TABLE>
185
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Interpublic Group Co Inc 39,978 $ 2,278,718
Knight-Ridder Inc 23,290 1,109,186
McGraw-Hill Inc 28,963 2,208,429
Meredith Corp 15,407 517,097
Moore Corp Ltd 25,970 248,338
New York Times Co Class A 56,162 1,628,698
Times Mirror Co Class A 25,996 1,486,646
--------------
TOTAL PUBLISHING
- VALUE $ 22,177,107
- COST $ 14,770,160
RETAIL & RELATED-5.50%
AutoZone Inc+ 44,582 $ 1,156,335
Circuit City Stores Inc 28,858 890,991
Consolidated Stores Corp+ 31,524 993,006
Costco Co Inc+ 62,941 2,962,161
Dayton-Hudson Corp 128,192 4,614,912
Dillards Inc Class A 32,516 938,900
Dollar General Corp 42,795 1,150,116
Eastman Kodak Co 95,256 7,441,875
Federated Department Stores Inc+ 61,534 2,680,575
Fred Myer Inc 43,771 1,720,747
Gap Inc 116,077 5,927,182
Home Depot Inc 429,496 16,535,596
Jostens Inc 11,308 224,747
K Mart Corp+ 143,097 1,824,487
Kohls Corp 46,219 2,100,076
Limited Inc 72,491 1,513,250
Longs Drug Stores Corp 11,262 384,316
Lowe's Co Inc 102,626 3,598,324
May Department Stores Co 67,826 3,815,213
Newell Co 46,564 2,223,431
Nordstrom Inc 45,306 1,356,348
Penney (J C) Co Inc 73,245 3,630,205
Rite Aid Corp 75,624 2,736,644
Sears Roebuck & Co 114,972 5,224,040
Sherwin Williams Co 50,700 1,210,463
Tandy Corp 30,305 1,653,517
TJX Companies Inc 94,504 2,108,621
Toys R Us Inc+ 83,145 1,543,379
Venator Group Inc+ 39,479 357,779
</TABLE>
186
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX--MASTER PORTFOLIO--AUGUST 31,
1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Walgreen Co 145,262 $ 5,592,587
WalMart Stores Inc 659,020 38,717,425
--------------
TOTAL RETAIL & RELATED
- VALUE $ 126,827,248
- COST $ 83,396,990
SERVICES-0.27%
Block (H R) Inc 30,680 $ 1,200,355
Public Service Enterprise Group 68,041 2,492,002
Service Corp International 73,995 2,506,581
--------------
TOTAL SERVICES
- VALUE $ 6,198,938
- COST $ 4,946,527
TELECOMMUNICATIONS-9.14%
Airtouch Communications+ 167,903 $ 9,444,544
Alltel Corp 80,519 3,633,420
Ameritech Corp 321,187 15,135,937
Andrew Corp+ 26,084 386,369
Ascend Communications Inc+ 56,580 1,980,300
AT & T Corp 531,112 26,622,004
Bell Atlantic Corp 455,830 20,113,499
BellSouth Corp 290,918 19,946,065
Frontier Corp 48,204 1,464,197
GTE Corp 281,026 14,051,300
Lucent Technologies Inc 384,524 27,253,138
MCI Communications Corp 212,259 10,612,950
NEXTEL Communications Class A+ 77,162 1,393,739
Northern Telecom Ltd 152,769 7,294,720
SBC Communication Inc 537,890 20,439,820
Scientific-Atlanta Inc 23,111 408,776
Sprint Corp 126,150 8,459,934
Tellabs Inc+ 56,685 2,394,941
U.S. West Inc 146,695 7,628,140
WorldCom Inc+ 302,448 12,381,465
--------------
TOTAL TELECOMMUNICATIONS
- VALUE $ 211,045,258
- COST $ 142,231,327
</TABLE>
187
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TEXTILES-0.01%
Springs Industries Inc Class A 5,838 $ 193,019
--------------
TOTAL TEXTILES
- VALUE $ 193,019
- COST $ 239,539
TOBACCO-1.34%
Fortune Brands Inc 50,394 $ 1,388,985
Philip Morris Co Inc 711,525 29,572,758
--------------
TOTAL TOBACCO
- VALUE $ 30,961,743
- COST $ 21,678,583
TRANSPORTATION-0.59%
Burlington Northern Santa Fe 45,856 $ 4,267,474
CSX Corp 63,960 2,414,490
Laidlaw Inc Class B 96,132 829,139
Norfolk Southern Corp 110,585 3,117,115
Union Pacific Corp 72,452 2,884,495
--------------
TOTAL TRANSPORTATION
- VALUE $ 13,512,713
- COST $ 13,503,436
UTILITIES-2.74%
Ameren Corp 40,237 $ 1,591,876
American Electric Power Inc 55,646 2,517,982
Baltimore Gas & Electric Co 43,400 1,337,263
Carolina Power & Light Co 44,097 1,898,927
Central & South West Corp 62,265 1,626,673
Cinergy Corp 46,233 1,606,597
Consolidated Edison Inc 68,915 3,260,541
Dominion Resources Inc 56,755 2,365,974
DTE Energy Co 42,600 1,794,525
Duke Power Co 105,510 6,581,186
Edison International 111,530 3,171,634
Entergy Corp 71,471 2,059,258
FirstEnergy Corp 67,527 1,949,842
FPL Group Inc 53,398 3,554,304
GPU Inc 37,253 1,399,316
Houston Industries Inc 83,294 2,399,908
Niagara Mohawk Power Corp+ 54,895 850,873
</TABLE>
188
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX--MASTER PORTFOLIO--AUGUST 31,
1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
SECURITY NAME SHARES VALUE
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Northern States Power Co 43,582 $ 1,154,923
Pacificorp 86,963 1,962,103
PECO Energy Co 65,066 2,228,511
PG & E Corp 111,632 3,586,178
PP & L Resources Inc 48,620 1,145,609
Sempra Energy+ 70,084 1,782,764
Southern Co 202,478 5,694,694
Texas Utilities Co 81,856 3,478,880
Unicom Corp 63,541 2,263,648
--------------
TOTAL UTILITIES
- VALUE $ 63,263,989
- COST $ 50,052,177
TOTAL COMMON STOCKS
- VALUE $2,244,360,287
- COST $1,604,633,462
</TABLE>
189
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL/
SECURITY NAME RATE DATE SHARES VALUE
<S> <C> <C> <C> <C>
SHORT TERM INSTRUMENTS-6.68%
CASH EQUIVALENTS-2.86%
Dreyfus Institutional Money
Market Fund++ 1,842,547 $ 1,842,547
Janus Institutional Money
Market Fund++ 16,600,000 16,600,000
Merrimac Cash Fund-Premium
Class++ 47,600,000 47,600,000
--------------
$ 66,042,547
REPURCHASE AGREEMENTS-0.83%
Goldman Sachs Repurchase
Agreements, dated 8/31/98, due
9/02/98, with a maturity value
of $19,009,168 and an
effective yield of 5.79%,
collateralized by a Federal
Home Loan Mortgage Corporation
obligation and a Federal
National Mortgage Association
obligation with rates ranging
from 6.00% to 6.60%, with
maturity dates ranging from
7/01/06 to 6/01/36 and with an
aggregate market value of
$19,380,000.++ $19,000,000 $ 19,000,000
--------------
U.S. TREASURY BILLS-2.99%
U.S. Treasury Bills 4.37%* 09/10/98 $ 7,708,000 $ 7,698,488
U.S. Treasury Bills 4.80%* 10/08/98 4,462,000 4,440,127
U.S. Treasury Bills 4.80%* 10/22/98 9,740,000 9,674,323
U.S. Treasury Bills 4.86%* 10/15/98 15,577,000 15,485,236
U.S. Treasury Bills 5.23%* 09/17/98 26,274,000 26,217,012
U.S. Treasury Bills 5.28%* 09/03/98 5,553,000 5,551,478
--------------
$ 69,066,664
TOTAL SHORT TERM INSTRUMENTS
- VALUE $ 154,109,211
- COST $ 154,105,840
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,758,739,302)** (Notes
1 and 3) 103.91% $2,398,469,498
Other Assets and Liabilities,
Net (3.91)% (90,244,207)
------ --------------
TOTAL NET ASSETS 100.00% $2,308,225,291
====== ==============
- -------------------------------------------------------------------------------
</TABLE>
+ Non-income earning securities.
++ Represents collateral received from securities lending transactions. See
Note 4.
* Yield to Maturity.
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized
Appreciation $716,470,198
Gross Unrealized
Depreciation (76,740,002)
------------
NET UNREALIZED APPRECIATION $639,730,196
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
190
<PAGE>
MANAGED SERIES INVESTMENT TRUST--SHORT-INTERMEDIATE TERM MASTER
PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
MANAGED SERIES INVESTMENT TRUST--SHORT-INTERMEDIATE TERM MASTER PORTFOLIO--
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES-45.96%
BANK & FINANCE-21.41%
$250,000 BankAmerica Corp 8.38% 03/15/02 $ 270,791
500,000 Duke Capital Corp 6.25% 07/15/05 504,830
500,000 National Australia Bank 6.40% 12/10/07 508,316
500,000 EW Scripps Co 6.38% 10/15/02 511,265
500,000 USA Waste Services Inc 6.13% 07/15/01 503,931
----------
$2,299,133
BUSINESS SERVICES-4.68%
$500,000 EOP Operating LP 6.38% 02/15/03 $ 502,173
INVESTMENT BANKING & BROKERAGE-4.71%
$500,000 AT& T Capital Corp 6.25% 05/15/01 $ 506,106
PUBLISHING-4.78%
$500,000 News America Inc 6.70% 05/21/04 $ 513,823
RAILROADS-4.96%
$500,000 Union Pacific 7.25% 11/01/08 $ 532,817
UTILITIES-5.42%
$500,000 Public Service Electric & Gas Co 9.13% 07/01/05 $ 581,522
----------
TOTAL CORPORATE BONDS & NOTES $4,935,574
(Cost $4,857,038)
U.S. GOVERNMENT AGENCY SECURITIES-8.02%
FEDERAL NATIONAL MORTGAGE ASSOCIATION-8.02%
$479,116 Federal National Mortgage Assoc 7.00% 06/01/09 $ 490,068
366,273 Federal National Mortgage Assoc 6.50% 05/01/11 371,031
----------
TOTAL U.S. GOVERNMENT AGENCY SECURITIES $ 861,099
(Cost $871,687)
</TABLE>
191
<PAGE>
MANAGED SERIES INVESTMENT TRUST--SHORT-INTERMEDIATE
TERM MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES-43.50%
U.S. TREASURY BONDS-9.26%
$ 750,000 U.S. Treasury Bonds 10.75% 08/15/05 $ 994,219
U.S. TREASURY NOTES-34.24%
$1,400,000 U.S. Treasury Notes 6.00% 07/31/02 $ 1,447,250
500,000 U.S. Treasury Notes 6.13% 08/15/07 536,875
850,000 U.S. Treasury Notes 5.75% 11/15/00 863,813
700,000 U.S. Treasury Notes 7.25% 08/15/04 777,875
50,000 U.S. Treasury Notes 6.38% 03/31/01 51,641
-----------
$ 3,677,454
TOTAL U.S. TREASURY SECURITIES $ 4,671,673
(Cost $4,559,085)
TOTAL INVESTMENT IN SECURITIES
(Cost $10,287,810)*
(Notes 1 and 3) 97.48% $10,468,346
Other Assets
and
Liabilities,
Net 2.52% 270,428
------ -----------
TOTAL NET 100.00%
ASSETS $10,738,774
====== ===========
</TABLE>
- --------------------------------------------------------------------------------
* Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized Apprecia-
tion $218,588
Gross Unrealized Deprecia-
tion (38,052)
--------
NET UNREALIZED APPRECIATION $180,536
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
192
<PAGE>
MASTER INVESTMENT PORTFOLIO--U.S. TREASURY ALLOCATION MASTER PORTFOLIO--
AUGUST 31, 1998 (UNAUDITED)
MASTER INVESTMENT PORTFOLIO--U.S. TREASURY ALLOCATION MASTER PORTFOLIO--AUGUST
31,1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL/ INTEREST MATURITY
SHARES SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES-19.87%
U.S. TREASURY BONDS-16.48%
$1,150,000 U.S. Treasury Bonds 12.38% 05/15/04 $1,559,688
1,050,000 U.S. Treasury Bonds 11.63% 11/15/04 1,410,281
1,100,000 U.S. Treasury Bonds 8.00% 11/15/21 1,464,032
1,250,000 U.S. Treasury Bonds 7.63% 11/15/22 1,610,156
1,200,000 U.S. Treasury Bonds 7.25% 08/15/22 1,484,250
----------
$7,528,407
U.S. TREASURY NOTES-3.39%
$1,500,000 U.S. Treasury Notes 5.75% 08/15/03 $1,546,407
TOTAL U.S. TREASURY SECURITIES $9,074,814
(Cost $8,890,398)
SHORT TERM INSTRUMENTS-81.82%
CASH EQUIVALENTS-1.93%
382,563 Dreyfus Institutional Money Market
Fund+ $ 382,563
500,000 Janus Institutional Money Market
Fund+ 500,000
----------
$ 882,563
</TABLE>
193
<PAGE>
MASTER INVESTMENT PORTFOLIO--U.S. TREASURY ALLOCATION
MASTER PORTFOLIO--AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL/ INTEREST MATURITY
SHARES SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY BILLS-79.89%
$ 80,000 U.S. Treasury Bills 5.28%* 09/03/98 $ 79,977
80,000 U.S. Treasury Bills 5.23%* 09/17/98 79,826
9,757,000 U.S. Treasury Bills 4.90%* 11/12/98 9,663,138
21,630,000 U.S. Treasury Bills 4.86%* 10/15/98 21,502,578
148,000 U.S. Treasury Bills 4.80%* 10/08/98 147,275
4,982,000 U.S. Treasury Bills 4.80%* 10/22/98 4,948,406
66,000 U.S. Treasury Bills 4.37%* 09/10/98 65,919
-----------
$36,487,119
TOTAL SHORT TERM INSTRUMENTS
(Cost $37,370,609) $37,369,682
TOTAL INVESTMENT IN SECURITIES
(Cost $46,261,007)**(Notes 1 and 3) 101.69 % $46,444,496
Other Assets and Liabilities (1.69)% (770,646)
-------- -----------
TOTAL NET ASSETS 100.00 % $45,673,850
======== ===========
</TABLE>
- --------------------------------------------------------------------------------
+ Represents collateral received from securities lending transactions. See Note
4.
* Yield to Maturity.
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized
Appreciation $185,677
Gross Unrealized
Depreciation (2,188)
--------
NET UNREALIZED APPRECIATION $183,489
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
194
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
195
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Master Master
Investment Portfolio Investment Portfolio
Asset Allocation Bond Index
Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) (Note 1) $540,504,780 $117,750,188
Cash 856 580
RECEIVABLES:
Investment sold 129,848 0
Dividends and interest 1,480,852 1,263,849
TOTAL ASSETS 542,116,336 119,014,617
LIABILITIES
PAYABLES:
Variation margin on futures
contracts 0 0
Investment securities purchased 497,711 0
Collateral for securities loaned
(Note 4) 52,792,916 16,382,750
Due to BGI (Note 2) 485,186 20,536
TOTAL LIABILITIES 53,775,813 16,403,286
TOTAL NET ASSETS $488,340,523 $102,611,331
INVESTMENTS AT COST $496,428,066 $113,074,293
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
196
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Master Master Master
Investment Investment Investment
Managed Series Portfolio Portfolio Portfolio
Investment Trust LifePath LifePath LifePath
Growth Stock 2000 2010 2020
Master Portfolio Master Portfolio Master Portfolio Master Portfolio
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
$163,382,308 $125,439,921 $229,132,659 $348,759,487
1,264,413 449 244 444
4,688,463 0 0 0
117,175 805,669 1,492,296 1,490,885
169,452,359 126,246,039 230,625,199 350,250,816
0 0 0 0
397,000 0 0 0
0 17,905,753 22,253,903 39,719,302
353,875 156,751 303,739 473,526
750,875 18,062,504 22,557,642 40,192,828
$168,701,484 $108,183,535 $208,067,557 $310,057,988
$196,155,105 $122,133,681 $211,482,782 $308,001,088
- -----------------------------------------------------------------------------------
</TABLE>
197
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Master Master
Investment Portfolio Investment Portfolio
LifePath LifePath
2030 2040
Master Portfolio Master Portfolio
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see cost below) (Note 1) $248,819,784 $432,623,910
Cash 931 311
RECEIVABLES:
Investments sold 0 0
Dividends and interest 753,893 765,668
TOTAL ASSETS 249,574,608 433,389,889
LIABILITIES
PAYABLES:
Variation margin on futures contracts 0 0
Investment securities purchased 0 0
Collateral for securities loaned (Note 4) 23,708,395 41,280,462
Due to BGI (Note 2) 347,775 608,051
TOTAL LIABILITIES 24,056,170 41,888,513
TOTAL NET ASSETS $225,518,438 $391,501,376
INVESTMENTS AT COST $214,775,867 $387,705,145
- ---------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
198
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Master Managed Series Master
Investment Portfolio Investment Trust Investment Portfolio
S&P 500 Index Short-Intermediate Term U.S. Treasury Allocation
Master Portfolio Master Portfolio Master Portfolio
- ----------------------------------------------------------------------------------
<S> <C> <C>
$2,398,469,498 $10,468,346 $46,444,496
180,356 170,822 720
811,564 0 0
4,022,757 111,807 140,788
2,403,484,175 10,750,975 46,586,004
5,030,126 0 0
4,859,056 0 0
85,042,547 0 882,563
327,155 12,201 29,591
95,258,884 12,201 912,154
$2,308,225,291 $10,738,774 $45,673,850
$1,758,739,302 $10,287,810 $46,261,007
- ----------------------------------------------------------------------------------
</TABLE>
199
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Master Master
Investment Portfolio Investment Portfolio
Asset Allocation Bond Index
Master Portfolio Master Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 2,795,076 $ 0
Interest+ 5,166,972 3,197,488
TOTAL INVESTMENT INCOME 7,962,048 3,197,488
EXPENSES (NOTE 2)
Advisory fees 977,805 39,137
TOTAL EXPENSES 977,805 39,137
LESS:
Waived fees by BGI (Note 2) 0 0
NET EXPENSES 977,805 39,137
NET INVESTMENT INCOME (LOSS) 6,984,243 3,158,351
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on sale of
investments 44,025,254 2,898
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized
appreciation (depreciation) of
investments (66,929,015) 1,954,933
Net change in unrealized
appreciation (depreciation) of
futures contracts 0 0
NET GAIN (LOSS) ON INVESTMENTS (22,903,761) 1,957,831
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $(15,919,518) $5,116,182
- -------------------------------------------------------------------------------
+ Interest income includes security
lending income of: $ 49,864 $ 8,200
</TABLE>
The accompanying notes are an integral part of these financial statements.
200
<PAGE>
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Master Master Master
Investment Investment Investment
Managed Series Portfolio Portfolio Portfolio
Investment Trust LifePath LifePath LifePath
Growth Stock 2000 2010 2020
Master Portfolio Master Portfolio Master Portfolio Master Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 246,005 $ 249,711 $ 953,591 $ 2,162,313
281,344 2,511,466 3,229,959 3,117,266
527,349 2,761,177 4,183,550 5,279,579
700,265 319,895 613,489 955,619
700,265 319,895 613,489 955,619
(23,342) 0 0 0
676,923 319,895 613,489 955,619
(149,574) 2,441,282 3,570,061 4,323,960
31,156,654 2,619,070 4,890,342 9,274,323
0 0 0 0
(78,347,525) (4,237,744) (13,559,349) (30,680,646)
0 0 0 0
(47,190,871) (1,618,674) (8,669,007) (21,406,323)
$(47,340,445) $ 822,608 $(5,098,946) $(17,082,363)
- --------------------------------------------------------------------------------
$ 0 $ 11,575 $ 26,103 $ 49,272
</TABLE>
201
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Master Master
Investment Investment
Portfolio Portfolio
LifePath LifePath
2030 2040
Master Portfolio Master Portfolio
- ---------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME
Dividends $ 1,957,988 $ 3,858,861
Interest+ 1,238,031 183,843
TOTAL INVESTMENT INCOME 3,196,019 4,042,704
EXPENSES (NOTE 2)
Advisory fees 705,423 1,242,901
TOTAL EXPENSES 705,423 1,242,901
LESS:
Waived fees by BGI (Note 2) 0 0
NET EXPENSES 705,423 1,242,901
NET INVESTMENT INCOME (LOSS) 2,490,596 2,799,803
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on sale of
investments 6,605,306 10,647,981
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments (27,034,449) (56,178,376)
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET GAIN (LOSS) ON INVESTMENTS (20,429,143) (45,530,395)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(17,938,547) $(42,730,592)
- ---------------------------------------------------------------------------
+ Interest income includes security
lending income of: $ 44,147 $ 81,825
</TABLE>
The accompanying notes are an integral part of these financial statements.
202
<PAGE>
STATEMENT OF OPERATIONS--FOR THE SIX MONTHS ENDED AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Managed Series Master
Master Investment Trust Investment Portfolio
Investment Portfolio Short-Intermediate U.S. Treasury
S&P 500 Index Term Allocation
Master Portfolio Master Portfolio Master Portfolio
- -------------------------------------------------------------------------------------
<S> <C> <C>
$ 17,796,896 $ 0 $ 0
4,246,787 348,579 1,325,149
22,043,683 348,579 1,325,149
661,201 24,247 68,449
661,201 24,247 68,449
0 0 0
661,201 24,247 68,449
21,382,482 324,332 1,256,700
7,494,643 68,139 268,491
13,913,003 0 0
(237,590,838) 50,612 60,447
(22,277,925) 0 0
(238,461,117) 118,751 328,938
$(217,078,635) $443,083 $1,585,638
- -------------------------------------------------------------------------------------
$ 31,974 $ 0 $ 682
</TABLE>
203
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
Asset Allocation Master Portfolio
----------------------------------
For the Six
Months Ended For the
August 31, Year Ended
1998 February 28,
(Unaudited) 1998
- -------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 6,984,243 $ 17,382,461
Net realized gain (loss) on sale of
investments 44,025,254 43,346,192
Net realized gain on sale of futures
contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments (66,929,015) 54,041,425
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (15,919,518) 114,770,078
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTEREST
TRANSACTIONS (30,876,697) (11,593,179)
INCREASE (DECREASE) IN NET ASSETS (46,796,215) 103,176,899
NET ASSETS:
Beginning net assets $ 535,136,738 $ 431,959,839
ENDING NET ASSETS $ 488,340,523 $ 535,136,738
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
204
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio Managed Series Investment Trust
Bond Index Master Portfolio Growth Stock Master Portfolio
-------------------------------- --------------------------------------------
For the Six
Months Ended For the For the Six For the
August 31, Year Ended Months Ended Year Ended
1998 February 28, August 31, 1998 February 28,
(Unaudited) 1998 (Unaudited) 1998
- ---------------------------------------------------------------------------------------
<C> <C> <C> <S>
$ 3,158,351 $ 12,426,184 $ (149,574) $ (220,412)
2,898 3,123,379 31,156,654 9,338,412
0 0 0 0
1,954,933 3,034,137 (78,347,525) 35,007,529
0 0 0 0
5,116,182 18,583,700 (47,340,445) 44,125,529
4,261,018 (146,679,073) (21,006,848) (20,069,241)
9,377,200 (128,095,373) (68,347,293) 24,056,288
$ 93,234,131 $ 221,329,504 $ 237,048,777 $ 212,992,489
$ 102,611,331 $ 93,234,131 $ 168,701,484 $ 237,048,777
- ---------------------------------------------------------------------------------------
</TABLE>
205
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
LifePath 2000 Master Portfolio
-------------------------------
For the Six
Months Ended For the
August 31, Year Ended
1998 February 28,
(Unaudited) 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 2,441,282 $ 5,325,967
Net realized gain (loss) on sale of
investments 2,619,070 5,800,419
Net realized gain (loss) on sale of futures
contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments (4,237,744) 3,089,773
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 822,608 14,216,159
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTEREST
TRANSACTIONS (8,838,074) (29,290,156)
INCREASE (DECREASE) IN NET ASSETS (8,015,466) (15,073,997)
NET ASSETS:
Beginning net assets $ 116,199,001 $ 131,272,998
ENDING NET ASSETS $ 108,183,535 $ 116,199,001
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
206
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio Master Investment Portfolio
LifePath 2010 Master Portfolio LifePath 2020 Master Portfolio
----------------------------------- ------------------------------------------
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended
August 31, 1998 February 28, August 31, 1998 February 28,
(Unaudited) 1998 (Unaudited) 1998
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 3,570,061 $ 6,460,247 $ 4,323,960 $ 7,680,647
4,890,342 9,734,287 9,274,323 16,445,704
0 0 0 0
(13,559,349) 16,696,571 (30,680,646) 39,706,672
0 0 0 0
(5,098,946) 32,891,105 (17,082,363) 63,833,023
4,948,804 5,815,674 869,589 10,995,106
(150,142) 38,706,779 (16,212,774) 74,828,129
$ 208,217,699 $ 169,510,920 $ 326,270,762 $ 251,442,633
$ 208,067,557 $ 208,217,699 $ 310,057,988 $ 326,270,762
- -------------------------------------------------------------------------------------
</TABLE>
207
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
LifePath 2030 Master Portfolio
--------------------------------
For the Six
Months Ended For the
August 31, Year Ended
1998 February 28,
(Unaudited) 1998
- -----------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 2,490,596 $ 4,066,385
Net realized gain (loss) on sale of
investments 6,605,306 9,255,193
Net realized gain (loss) on sale
of futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments (27,034,449) 35,383,133
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (17,938,547) 48,704,711
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTEREST
TRANSACTIONS 9,846,612 26,100,829
INCREASE (DECREASE) IN NET ASSETS (8,091,935) 74,805,540
NET ASSETS:
Beginning net assets $ 233,610,373 $ 158,804,833
ENDING NET ASSETS $ 225,518,438 $ 233,610,373
- -----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
208
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
LifePath 2040 Master Portfolio
- -------------------------------------
For the Six
Months Ended For the
August 31, Year Ended
1998 February 28,
(Unaudited) 1998
- ------------------------------------
<S> <C>
$ 2,799,803 $ 4,675,068
10,647,981 26,380,392
0 14,539
(56,178,376) 58,037,494
0 (52,500)
(42,730,592) 89,054,993
29,502,861 57,589,386
(13,227,731) 146,644,379
$ 404,729,107 $ 258,084,728
$ 391,501,376 $ 404,729,107
- -------------------------------------
</TABLE>
209
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
S&P 500 Index Master Portfolio
---------------------------------
For the Six
Months Ended For the
August 31, Year Ended
1998 February 28,
(Unaudited) 1998
- ------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 21,382,482 $ 35,530,147
Net realized gain (loss) on sale of
investments 7,494,643 52,551,777
Net realized gain on sale of futures
contracts 13,913,003 18,816,662
Net change in unrealized appreciation
(depreciation) of investments (237,590,838) 452,651,075
Net change in unrealized appreciation
(depreciation) of futures contracts (22,277,925) 10,434,575
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (217,078,635) 569,984,236
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTEREST
TRANSACTIONS 171,240,712 299,742,532
INCREASE (DECREASE) IN NET ASSETS (45,837,923) 869,726,768
NET ASSETS:
Beginning net assets $ 2,354,063,214 $ 1,484,336,446
ENDING NET ASSETS $ 2,308,225,291 $ 2,354,063,214
- ------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
210
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Managed Series Investment Trust Master Investment Portfolio
Short-Intermediate Term U.S. Treasury Allocation
Master Portfolio Master Portfolio
----------------------------------- ------------------------------------
For the Six For the Six
Months Ended For the Months Ended For the
August 31, Year Ended August 31, Year Ended
1998 February 28, 1998 February 28,
(Unaudited) 1998 (Unaudited) 1998
- -------------------------------------------------------------------------------
<C> <C> <C> <S>
$ 324,332 $ 731,881 $ 1,256,700 $ 2,861,900
68,139 (82,340) 268,491 497,222
0 0 0 0
50,612 250,239 60,447 384,200
0 0 0 0
443,083 899,780 1,585,638 3,743,322
(569,045) (3,100,757) (3,117,786) (4,069,601)
(125,962) (2,200,977) (1,532,148) (326,279)
$ 10,864,736 $ 13,065,713 $ 47,205,998 $ 47,532,277
$ 10,738,774 $ 10,864,736 $ 45,673,850 $ 47,205,998
- -------------------------------------------------------------------------------
</TABLE>
211
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Master Investment Portfolio ("MIP") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. MIP was organized on October 20, 1993 as a Delaware
business trust pursuant to an Agreement and Declaration of Trust dated May 14,
1993, and had no operations prior to May 26, 1994. MIP currently issues, the
following separate portfolios (the "Master Portfolios"), the Asset Allocation,
Bond Index, LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030,
LifePath 2040, S&P 500 Index and U.S. Treasury Allocation Master Portfolios.
The following significant accounting policies are consistently followed by
MIP in the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting principles for investment
companies. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
SECURITY VALUATION
The equity securities of each Master Portfolio are valued at the last
reported sale price on the primary securities exchange or national securities
market on which such securities are traded. Securities not listed on an
exchange or national securities market, or securities in which there was no
last reported sales price, are valued at the most recent bid prices. Debt
securities are generally traded in the over-the-counter market and are valued
at a price deemed best to reflect fair value as quoted by dealers who make
markets in those securities or by an independent pricing source. U.S.
Government obligations are valued at the last reported bid price. Debt
securities maturing in 60 days or less are valued at amortized cost, which
approximates market value. Any securities, restricted securities or other
assets for which market quotations are not readily available, are valued at
fair value as determined in good faith in accordance with policies approved by
MIP's Board of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Dividend income is recognized on the
212
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
ex-dividend date, and interest income is recognized on a daily accrual basis.
Realized gains or losses are reported on the basis of identified cost of
securities delivered. Bond discounts and premiums are amortized under
provisions of the Internal Revenue Code of 1986, as amended (the "Code").
FEDERAL INCOME TAXES
Each Master Portfolio intends to qualify as a partnership for federal income
tax purposes. Each Master Portfolio therefore believes that it will not be
subject to any federal income tax on its income and net realized capital gains
(if any). However, each investor in a Master Portfolio will be taxed on its
allocable share of the partnership's income and capital gains for purposes of
determining its federal income tax liability. The determination of such share
will be made in accordance with the applicable sections of the Code.
It is intended that each Master Portfolio's assets, income and allocations
will be managed in such a way that a regulated investment company investing in
a Master Portfolio will be able to satisfy the requirements of Subchapter M of
the Code, assuming that the investment company invested all of its assets in
the corresponding Master Portfolio.
FUTURES CONTRACTS
The Asset Allocation, LifePath 2000, LifePath 2010, LifePath 2020, LifePath
2030, LifePath 2040 and S&P 500 Index Master Portfolios may purchase futures
contracts to gain exposure to market changes as this may be more efficient or
cost effective than actually buying the securities. A futures contract is an
agreement between two parties to buy and sell a security at a set price on a
future date and is exchange traded. Upon entering into a futures contract, the
Asset Allocation, LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030,
LifePath 2040 and S&P 500 Index Master Portfolios are required to pledge to the
broker an amount of cash, U.S. Government securities or other high-quality debt
securities equal to the minimum "initial margin" requirements of the exchange.
Pursuant to the contract, the Master Portfolios agree to receive from or pay to
the broker an amount of cash equal to the daily fluctuation in the value of the
contract. Such receipts or payments are known as "variation margin" and are
recorded by the Master Portfolios as unrealized gains or losses. When the
contract is closed, the Master Portfolios record a gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed. Pursuant to regulations and/or
213
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
published positions of the Securities and Exchange Commission, the Master
Portfolios are required to segregate cash, U.S. Government obligations or high
quality, liquid debt instruments in connection with futures transactions in an
amount generally equal to the entire futures contract amount. Risks of entering
into futures contracts include the possibility that there may be an illiquid
market and that a change in the value of the contracts may not correlate with
changes in the value of the underlying securities. As of August 31, 1998, the
following Master Portfolio had open long futures contracts outstanding:
S&P 500 INDEX MASTER PORTFOLIO
<TABLE>
<CAPTION>
Expiration Notional Net Unrealized
Number of Contracts Type Date Contract Value Depreciation
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
264 S&P 500 Index September 1998 $62,964,000 $11,028,950
</TABLE>
The S&P 500 Index Master Portfolio has pledged to brokers U.S. Treasury Bills
for initial margin requirements with a par value of $2,653,200.
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell
such securities at a specified price and time ("repurchase agreements") are
treated as collateralized financing transactions and are recorded at their
contracted resale amounts. These repurchase agreements, if any, are detailed in
each Master Portfolio's Portfolio of Investments. The adviser to the Master
Portfolios may pool each Master Portfolio's cash and invest in repurchase
agreements entered into by the other Master Portfolios. Each Master Portfolio's
prospectus requires that the cash investments be fully collateralized based on
values that are marked to market daily. The collateral is generally held by an
agent bank under a tri-party agreement. It is the adviser's responsibility to
value collateral daily and to obtain additional collateral as necessary to
maintain the value at equal to or greater than 102% of market value. The
repurchase agreements entered into on August 31, 1998 by the Master Portfolios
are collateralized by U.S. Government Securities.
214
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Contract with each Master Portfolio,
Barclays Global Fund Advisors ("BGFA") provides investment guidance and policy
direction in connection with the management of each Master Portfolio's assets.
BGFA is entitled to receive 0.35%, 0.08%, 0.05% and 0.30% of the average daily
net assets of the Asset Allocation, Bond Index, S&P 500 Index and U.S. Treasury
Allocation Master Portfolios, respectively, as compensation for advisory
services. BGFA is entitled to receive 0.55% of the average daily net assets of
each of the LifePath Master Portfolios as compensation for its advisory
services. BGFA is an indirect subsidiary of Barclays Bank PLC.
Investors Bank & Trust Company ("IBT") serves as the custodian to each Master
Portfolio. IBT will not be entitled to receive fees for its custodial services
so long as it is entitled to receive a separate fee from Barclays Global
Investors, N.A. ("BGI") for its services as Sub-Administrator of each Master
Portfolio.
Stephens Inc. ("Stephens") is the Funds' co-administrator, sponsor and
placement agent for the Master Portfolios. Certain officers and directors of
MIP are also officers of Stephens. As of August 31, 1998, these officers of
Stephens indirectly collectively owned less than 1% of the Master Portfolios'
outstanding beneficial interest.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities, for
each Master Portfolio for the six months ended August 31, 1998 are as follows:
<TABLE>
<CAPTION>
Aggregate Purchases Asset Allocation Bond Index LifePath 2000
and Sales of: Master Portfolio Master Portfolio Master Portfolio
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS:
Purchases at cost $50,486,703 $ 6,695,915 $17,927,713
Sales Proceeds 97,976,684 13,563,706 21,566,340
OTHER SECURITIES:
Purchases at cost $65,871,113 $14,342,646 $ 1,567,744
Sales proceeds 64,877,912 1,487,142 5,566,610
</TABLE>
215
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Aggregate Purchases LifePath 2010 LifePath 2020 LifePath 2030
and Sales of: Master Portfolio Master Portfolio Master Portfolio
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS:
Purchases at cost $36,440,709 $26,873,341 $ 7,303,772
Sales proceeds 32,107,000 23,637,026 3,105,471
OTHER SECURITIES:
Purchases at cost $ 8,941,861 $16,678,417 $21,183,041
Sales proceeds 9,242,143 24,992,349 11,901,706
<CAPTION>
U.S. Treasury
Aggregate Purchases LifePath 2040 S&P 500 Index Allocation
and Sales of: Master Portfolio Master Portfolio Master Portfolio
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS:
Purchases at cost $ 0 $ 0 $16,381,719
Sales proceeds 0 0 22,125,125
OTHER SECURITIES:
Purchases at cost $54,213,803 $339,932,272 $ 0
Sales proceeds 19,130,609 25,863,942 0
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of August 31, 1998, certain Master Portfolios had loaned securities which
were collateralized by cash. Each Master Portfolio receives transaction fees
for providing services in connection with the securities lending program. The
value of the securities on loan and the value of the related collateral were as
follows:
<TABLE>
<CAPTION>
Securities Collateral
- ------------------------------------------------------------------
<S> <C> <C>
Asset Allocation Master Portfolio $51,919,168 $52,792,916
Bond Index Master Portfolio $16,089,111 $16,382,750
LifePath 2000 Master Portfolio $17,697,595 $17,905,753
LifePath 2010 Master Portfolio $21,832,824 $22,253,903
LifePath 2020 Master Portfolio $38,841,359 $39,719,302
LifePath 2030 Master Portfolio $23,083,844 $23,708,395
LifePath 2040 Master Portfolio $39,967,235 $41,280,462
S&P 500 Index Master Portfolio $82,461,683 $85,042,547
U.S. Treasury Allocation Master Portfolio $ 877,493 $ 882,563
</TABLE>
216
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
5. FINANCIAL HIGHLIGHTS
The portfolio turnover rates, excluding short-term securities, for the Master
Portfolios are as follows:
<TABLE>
<CAPTION>
For the
Period from
For the Six May 26, 1994
Months Ended For the For the For the (commencement
August 31, Year Ended Year Ended Year Ended of operations) to
1998 February 28, February 28, February 29, February 28,
(Unaudited) 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Allocation Master
Portfolio 22% 57% 43% 40% 23%
Bond Index Master
Portfolio 16% 59% 39% 21% 37%
LifePath 2000 Master
Portfolio 23% 39% 108% 84% 17%
LifePath 2010 Master
Portfolio 21% 46% 73% 39% 24%
LifePath 2020 Master
Portfolio 14% 41% 61% 49% 28%
LifePath 2030 Master
Portfolio 6% 27% 42% 39% 40%
LifePath 2040 Master
Portfolio 4% 34% 48% 29% 5%
S&P 500 Index Master
Portfolio 1% 6% 4% 2% 5%
U.S. Treasury Allocation
Master Portfolio 106% 76% 196% 325% 87%
</TABLE>
6. SUBSEQUENT EVENTS
On August 14, 1998, shareholders of the Money Market Fund of Masterworks ap-
proved the conversion of the Fund to a Master-feeder structure, and the invest-
ment of all of the Fund's assets in a new master portfolio of MIP, the Money
Market Master Portfolio. The Money Market Master Portfolio is expected to com-
mence operations on or about September 1, 1998.
217
<PAGE>
MANAGED SERIES INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Managed Series Investment Trust ("MSIT") is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
MSIT was organized as a Delaware business trust pursuant to an Agreement and
Declaration of Trust dated October 26, 1993. MSIT currently offers the
following separate portfolios (the "Master Portfolios"): the Growth Stock and
Short-Intermediate Term Master Portfolios.
These Master Portfolios invest in a range of securities, generally including
money market instruments, equities and U.S. government securities. The
following significant accounting policies are consistently followed by MSIT in
the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting principles for investment
companies.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
SECURITY VALUATION
The equity securities of each Master Portfolio are valued at the last
reported sale price on the primary securities exchange or national securities
market on which such securities are traded. Securities not listed on an
exchange or national securities market, or securities in which there was no
last reported sales price, are valued at the most recent bid prices. Debt
securities are generally traded in the over-the-counter market and are valued
at a price deemed best to reflect fair value as quoted by dealers who make
markets in those securities or by an independent pricing source. U.S.
Government obligations are valued at the last reported bid price. Debt
securities maturing in 60 days or less are valued at amortized cost, which
approximates market value. Any securities, restricted securities or other
assets for which market quotations are not readily available, are valued at
fair value as determined in good faith in accordance with policies approved by
MSIT's Board of Trustees.
218
<PAGE>
MANAGED SERIES INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Dividend income is recognized on the ex-
dividend date, and interest income is recognized on a daily
accrual basis. Realized gains or losses are reported on the basis of identified
cost of securities delivered. Bond discounts and premiums are amortized under
provisions of the Internal Revenue Code of 1986, as amended (the "Code"').
FEDERAL INCOME TAXES
Each Master Portfolio intends to qualify as a partnership for federal income
tax purposes. Each Master Portfolio therefore believes that it will not be
subject to any federal income tax on its income and net realized capital gains
(if any). However, each investor in a Master Portfolio will be taxable on its
allocable share of the partnership's income and capital gains for purposes of
determining its federal income tax liability. The determination of such share
will be made in accordance with the applicable sections of the Code.
It is intended that each Master Portfolio's assets, income and allocations
will be managed in such a way that a regulated investment company investing in
a Master Portfolio will be able to satisfy the requirements of Subchapter M of
the Code, assuming that the investment company invested all of its assets in
the corresponding Master Portfolio.
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell
such securities at a specified price and time ("repurchase agreements") are
treated as collateralized financing transactions and are recorded at their
contracted resale amounts. These repurchase agreements, if any, are detailed in
each Master Portfolio's Portfolio of Investments. The adviser to the Master
Portfolios may pool each Master Portfolio's cash and invest in repurchase
agreements entered into by the other Master Portfolios. Each Master Portfolio's
prospectus requires that the cash investments be fully collateralized based on
values that are marked to market daily. The collateral is generally held by an
agent bank under a tri-party agreement. It is the adviser's responsibility to
value collateral daily and to obtain additional collateral as necessary to
maintain the value at equal to or greater than 102% of market value. The
repurchase agreements entered into on August 31, 1998 by the Master Portfolios
are collateralized by U.S. Government Securities.
219
<PAGE>
MANAGED SERIES INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Contract with each Master Portfolio,
Barclays Global Fund Advisors ("BGFA") provides investment guidance and policy
direction in connection with the management of each Master Portfolio's assets.
BGFA is entitled to receive 0.60% and 0.45% of the average daily net assets of
the Growth Stock and Short-Intermediate Term Master Portfolios, respectively,
as compensation for advisory services. BGFA is an indirect subsidiary of
Barclays Bank PLC.
Wells Fargo Bank ("WFB") serves as sub-adviser to each Master Portfolio. As
sub-adviser, WFB is responsible for the day-to-day portfolio management of each
Master Portfolio. WFB is entitled to receive from BGFA an amount equal to 0.15%
and 0.10% of the average daily net assets of the Growth Stock and Short-
Intermediate Term Master Portfolios, respectively, as compensation for its sub-
advisory services.
Investors Bank & Trust Company ("IBT") serves as the custodian to each Master
Portfolio. IBT will not be entitled to receive fees for its custodial services
so long as it is entitled to receive a separate fee from Barclays Global
Investors, N.A. ("BGI") for its services as Sub-Administrator of each Master
Portfolio.
Stephens Inc. ("Stephens") is the co-administrator, sponsor and placement
agent for the Master Portfolios. Certain fees have been waived by BGI for the
Growth Stock Master Portfolio for the six months ended August 31, 1998. Waived
fees continue at the discretion of BGI.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities, for
each Master Portfolio for the six months ended August 31, 1998, were as
follows:
<TABLE>
<CAPTION>
Short-
Intermediate
Aggregate Purchases Growth Stock Term
and Sales of: Master Portfolio Master Portfolio
- ---------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS:
Purchases at cost $ 0 $ 3,744,078
Sales proceeds 0 3,530,000
OTHER SECURITIES:
Purchases at cost $207,187,010 $ 4,020,045
Sales proceeds 212,457,906 4,123,250
</TABLE>
220
<PAGE>
MANAGED SERIES INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS
4. FINANCIAL HIGHLIGHTS
The portfolio turnover rates, excluding short-term securities, for the Master
Portfolios are as follows:
<TABLE>
<CAPTION>
For the
Period from
For the Six May 26, 1994
Months Ended For the For the For the (Commencement
August 31, Year Ended Year Ended Year Ended of Operations) to
1998 February 28, February 28, February 29, February 28,
Master Portfolios (Unaudited) 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Growth Stock Master
Portfolio 98% 129% 129% 145% 93%
Short-Intermediate Term
Master Portfolio 76% 77% 62% 105% 96%
</TABLE>
221
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
MasterWorks(R) Funds
c/o Investors Bank and Trust Co.
200 Clarendon Street
Boston, MA 02111
