<PAGE>
February 28, 1999
Annual Report 99
February 28 1999
Annual Report
Asset Allocation Fund
Bond Index Fund
LifePath 2000(R)
LifePath 2010(R)
LifePath 2020(R)
LifePath 2030(R)
Lifepath 2040(R)
Money Market Fund
S&P 500 Stock Fund
US Treasury Allocation Fund
Advised by Barclays Global Fund Advisors
Sponsored and distributed by Stephens Inc.,
Member NYSE/SIPC
MasterWorks(R) Funds
<PAGE>
Table of Contents
<TABLE>
<S> <C>
Letter to Shareholders...................................................... 1
Masterworks(R) Market Overview.............................................. 2
Managers Discussion and Analysis............................................ 6
MasterWorks(R) Funds Inc.
Statement of Assets and Liabilities........................................ 22
Statement of Operations.................................................... 26
Statements of Changes in Net Assets........................................ 30
Financial Highlights....................................................... 38
Notes to the Financial Statements.......................................... 46
Independent Auditors' Report............................................... 51
Master Investment Portfolio Portfolios of Investments
Asset Allocation Master Portfolio.......................................... 53
Bond Index Master Portfolio................................................ 73
LifePath Master Portfolios................................................. 80
Money Market Master Portfolio.............................................. 162
S&P 500 Index Master Portfolio............................................. 164
U.S. Treasury Allocation Master Portfolio.................................. 183
Master Investment Portfolio
Statement of Assets and Liabilities........................................ 184
Statement of Operations.................................................... 188
Statements of Changes in Net Assets........................................ 192
Master Investment Portfolio Notes to the Financial Statements.............. 200
Independent Auditors' Report............................................... 206
</TABLE>
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE>
To Our Shareholders
Perhaps the best way to summarize the fiscal year that ended February 28,
1999, is as a year of tremendous growth, significant volatility, and
considerable opportunity. Highlights of the last year include:
. The Dow Jones Industrial Average, which measures the value of 30 actively
traded, well-established U.S. companies, surpassed 9,000 points for the
first time in its 103-year history on April 6, 1998.
. The return of the Standard & Poor's 500 Index, which measures the
performance of 500 widely held industrial, transportation, financial, and
utility stocks of U.S. companies, surpassed 20% for the fourth calendar
year in a row.
. The Federal Reserve Board lowered interest rates three times during the
fiscal year.
. Financial and political turmoil abroad caused investors to turn to the
relative stability of U.S. bond and money market investments, resulting
in tremendous growth in these asset classes.
As we look back on a year marked by record-high levels in the Dow Jones
Industrial Average and the S&P 500 Index, the lowest U.S. Treasury bond yields
in 30 years, and dramatic changes in international markets, we encourage
investors to keep long-term goals in mind when making investment decisions.
While one fund's recent performance may be better than another's, it is
important to remember that past performance is no guarantee of future results.
Even as market conditions change, you should maintain your investment strategy
as long as it remains appropriate for your short- or long-term objectives. One
trait many successful investors share is the ability to stay focused on their
personal financial goals rather than on temporary market swings.
The MasterWorks(R) Funds offer a simple, cost-effective way for you to invest
in your future. We trust that the funds are fulfilling your expectations, and
will continue to do so. We appreciate your confidence and look forward to
continuing to help you meet your investment goals.
MasterWorks(R) Family of Funds April 1999
1
<PAGE>
MasterWorks(R) Funds Market Overview:
12-Month Period Ended February 28, 1999
U.S. Equity Markets
The fiscal year that began March 1, 1998, got off to a record-breaking start
for large-company stocks. The Dow Jones Industrial Average closed above 9,000
points for the first time in April. Low inflation, low interest rates, and
budget surpluses sustained an already-strong U.S. economy.
Although investors began to shift away from the U.S. stock market during the
first quarter of the fiscal year, expectations that the Federal Reserve Board
would tighten its interest-rate policies kept the market in check. Early signs
of political and economic trouble in Asia could have significantly affected the
U.S. market, but investors' decisions to purchase stocks at relatively low
prices kept the S&P 500 Index from any substantial slide. The announcement of
the merger between Chrysler and Daimler Benz, as well as the merger between SBC
Communications and Ameritech, also helped buoy stocks of larger U.S. companies.
Unfortunately, poor earnings reports from technology companies hurt the stocks
of smaller companies during this period.
The second quarter of the fiscal year began with substantial swings in the
large-company sector of the U.S. stock market, with 100-point moves in the Dow
Jones Industrial Average occurring regularly. Rumors of poor earnings at
technology companies, combined with turmoil in the Asian economy, continued to
negatively affect the performance of small-company stocks since investors tend
to favor stocks of more established companies in times of uncertainty.
Investments in large-company stocks drove the strong performance of the S&P 500
Index during the second quarter.
The Dow Jones Industrial Average set another record on July 14 and went on to
break it twice over the next few days. The S&P 500 Index reached six record
highs during July and was trading at its highest level until July 21, when the
Federal Reserve Board warned investors that stocks were overvalued and did not
lower interest rates. The Board's announcements, combined with investors'
worries over inflation, poor second-quarter-1998 earnings, and the burgeoning
political and economic difficulties in Asia, quickly cooled the record-breaking
growth of large-company stocks.
The stock market continued its downward trend in August, ending the month
with the sixth largest percentage drop in the Dow Jones Industrial Average
since the October 1987 crash. Financial tumult in Asia, Russia, and Latin
America shook investors' confidence in the U.S.
2
<PAGE>
MASTERWORKS(R) FUNDS MARKET OVERVIEW
stock market; panic-driven stock sales made August one of the worst months for
stock performance on record. The S&P 500 Index lost 14.5% of its value during
this time.
September brought much-needed relief to the large-company sector of the
equity market. Federal Reserve Board Chairman Alan Greenspan's remark that U.S.
inflation was no longer the primary threat to the economy boosted the market.
Investor concerns remained focused on the continuing turmoil in foreign
markets, especially Russia.
U.S. equity markets bounced back during the fourth quarter of the fiscal
year; the S&P 500 Index rose an impressive 21.3% by the end of the year. The
Federal Reserve Board's lowering interest rates during the fourth quarter
inspired investors' faith in the U.S. economy and investment in U.S. stocks.
Although stocks of mid-sized and small companies saw significant declines
early in the fiscal year, they had begun to show signs of improvement by
February 28, 1999. The Standard & Poor's 400 Index, which measures the
performance of mid-sized companies' stocks, returned -20.14% for the first half
of the fiscal year. It bounced back during the third and fourth quarters to end
the fiscal year with a 7.49% return. The Russell 2000 Index, which is a
benchmark for small-company stocks, returned a dismal -26.35% for the first
half of the fiscal year. Small-company stocks recovered slightly during the
second half of the year, partly in response to analysts' positive forecasts of
high-tech companies' performance. The Russell 2000 Index ended the fiscal year
with a -14.15% return.
U.S. Fixed-Income Markets
The U.S. bond market started the fiscal year slowly as investors analyzed
conflicting economic data. Low inflation, high federal tax receipts, and shaky
foreign economies encouraged investors to seek out more stable investment
options, but the bond market was still negatively affected by the lowest
unemployment rate in 28 years and modest corporate profits.
Bond prices dropped slightly during the first quarter of the fiscal year,
partially in response to an article in The Wall Street Journal that claimed the
Federal Reserve Board was biased toward higher interest rates. The declines
were short-lived, however, as bonds rallied in response to news that inflation
was at its lowest level in over 30 years.
Financial and political turmoil in other parts of the world also caused
investors to turn to the relative safety and stability of the U.S. bond market
during the first quarter of the fiscal year. In Indonesia,
3
<PAGE>
riots led to President Raden Suharto's resignation after more than 30 years in
power. The country's gross domestic product declined and inflation of the
rupiah soared. Indonesian companies owed over $80 billion to foreign lenders;
loans from Japanese banks accounted for 40% of that amount. Nuclear-bomb tests
by the Indian and Pakistani governments also heightened political tensions and
further encouraged investors toward U.S. bonds.
U.S. bond market returns were excellent in August, as investors sought a safe
haven from the shock waves created by the political and economic crises in
Russia as well as in several emerging markets. The Russian government had
defaulted on its domestic debt, suspended trading on the ruble, and delayed
repayment of corporate and bank debt to foreign creditors for 90 days.
During September, the beginning of the third quarter of the fiscal year, the
U.S. bond market continued its remarkable rally, fueled by investors'
attraction to low-risk investment options and their realization that turbulence
overseas would have a significant effect on the U.S. economy. To balance the
impact of these events, the Federal Reserve Board reduced short-term interest
rates for the first time since January 1996.
Additional rate cuts by the Federal Reserve Board, the enactment of banking
reform laws in Japan, a $42 billion financial rescue plan for Brazil, and
coordinated rate cuts by the 11 European nations preparing for the European
Monetary Union combined to calm global financial markets and decrease the
demand for U.S. Treasury bonds by the end of 1998. The flight to relatively
safer and more stable investments caused by Russia's devaluation of the ruble
and default on its debt, which had driven interest rates to their lowest levels
in a generation, subsided as investors became more optimistic that global
financial conditions were beginning to stabilize. Overall, U.S. Treasury bonds
performed well through the end of the fiscal year.
International Equity Markets
Among the more significant events in the international equity markets during
the fiscal year that ended February 28, 1999, were the selection of the
founding members of the European Monetary Union (EMU) and the adoption of its
new currency, the euro. The 11 countries selected for membership in the EMU are
Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg,
Netherlands, Portugal, and Spain. The euro became their official currency on
January 1, 1999.
4
<PAGE>
MASTERWORKS(R) FUNDS MARKET OVERVIEW
The euro should provide Europe with new benefits and opportunities, reducing
transaction costs and eliminating exchange-rate risks among EMU countries.
Businesses will have a more reliable basis on which to make investment and
trade decisions; consumers will be able to compare costs more accurately and
take advantage of competitive prices on products and services.
The launch of the euro sparked a new wave of consolidation within European
telecommunications and banking sectors. In January 1999, Societie General de
France took over Paribas SA, and Banco Santander SA and BCH SA merged.
Investors are compiling lists of companies they expect to perform better in the
new environment, either because of increased merger-and-acquisition activity or
companies' renewed attention to the bottom line in the wake of increased
competition.
The Morgan Stanley Capital International Europe Australasia Far East (MSCI
EAFE) Index returned 4.95% for the fiscal year that ended February 28, 1999.
Japan and the United Kingdom accounted for the largest parts of the index's
performance.
The banking crisis was central to most market events in Japan during the last
fiscal year; several of the country's largest financial institutions were
forced to declare bankruptcy when borrowers found themselves unable to repay
large loans. Although the Japanese equity market generally improved each time
regulators implied that the crisis was over, it declined just as quickly once
investors realized that the crisis had not yet been successfully resolved. The
Morgan Stanley Capital International Japan (MSCI Japan) Index returned -5.48%
for the fiscal year ended February 28, 1999.
The Morgan Stanley Capital International United Kingdom (MSCI UK) Index
returned 6.28% during the last fiscal year. The strength in the value of the
pound, as well as high consumer spending rates, boosted most sectors of the
United Kingdom's economy. The only sector that did not fare well was
manufacturing; a strong pound makes importing British goods an expensive
proposition for other countries, causing declines in export rates from the
United Kingdom.
As noted earlier, emerging markets were extremely volatile during the past
fiscal year. Occasional bright spots were overshadowed by the effects of
political and economic turmoil in Russia, Southeast Asia, and Brazil. Although
emerging-market countries are slowly turning themselves around, they have a
long way to go before achieving economic stability.
5
<PAGE>
Asset Allocation Fund
<TABLE>
<CAPTION>
Average Annual
PERFORMANCE AS OF 2/28/99 Total Return
- ---------------------------------------------------------------
<S> <C>
One Year 17.83%
Five Year 16.66%
Since Inception Date (7/2/93-2/28/99) 15.60%
</TABLE>
Average annual total return represents the Asset Allocation Fund's average an-
nual increase in value during the time periods noted above. These figures as-
sume that dividends and capital gain distributions have been reinvested in the
Fund at net asset value. The Fund's past performance is no guarantee of future
results. The investment return and principal value of shares of the Fund will
vary with changes in market conditions. Shares of the Fund may be worth more or
less than their original cost when they are redeemed.
A fund's "net asset value," or NAV, is the market value of one share of a fund.
The Asset Allocation Fund's NAV increased from $13.50 on February 28, 1998, to
$14.07 on February 28, 1999. "Net investment income" includes income from
dividends and interest on the Fund's investments after management and
administrative fees have been deducted. Cumulative dividends on net investment
income were approximately $0.26 per share during this period. Of course, past
performance is no guarantee of future results.
The Asset Allocation Fund can invest in stocks, bonds, and cash. The model used
to manage the Fund's assets constantly monitors expected levels of risk and
return to determine the best mix of investments among the different asset
classes.
The Asset Allocation Fund's benchmark is composed of 60% of the return of the
S&P 500 Index and 40% of the return of the Lehman Brothers 20+ Bond Index. For
the fiscal year that ended February 28, 1999, the Asset Allocation Fund
returned 17.83% while the benchmark returned 15.66%.
The U.S. stock and bond markets performed well at different times throughout
the fiscal year. Stocks outperformed long-term bonds every month of the last
fiscal year, with the exception of several months in the summer of 1998 when
investors turned from the economic and political crises in international
markets to the relative stability of fixed income investments.
During the first half of the fiscal year, the Fund was heavily invested in
stocks of large U.S. companies. The Fund benefited from the solid performance
of stocks in the S&P 500 Index during this period. During the second half of
the fiscal year, the Asset Allocation Fund began investing even more
significantly in stocks when their expected risk-adjusted returns looked more
attractive than those of bonds.
6
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
Asset Allocation Fund (Continued)
Low stock prices in August presented a good buying opportunity for the Asset
Allocation Fund. By September 1, 1998, the Fund had its highest allocation in
stocks since its inception in July, 1993. From September 1998 through the close
of the fiscal year on February 28, 1999, the Fund invested 80% of its assets in
stocks and 20% in bonds and cash equivalents.
[ASSET ALLOCATION FUND GRAPH APPEARS HERE]
Asset Allocation S&P 500 Index Lipper Balance
---------------- ------------- --------------
10,000 10,000 10,000
Sep-93 10,467 10,258 10,366
Dec-93 10,543 10,495 10,478
Mar-94 10,111 10,096 10,158
Jun-94 9,953 10,139 10,081
Sep-94 10,138 10,634 10,377
Dec-94 10,264 10,682 10,263
Mar-95 11,047 11,668 10,883
Jun-95 12,055 12,782 11,645
Sep-95 12,610 13,798 12,271
Dec-95 13,258 14,629 12,819
Mar-96 13,441 15,414 13,106
Jun-96 13,726 16,109 13,372
Sep-96 13,944 16,604 13,723
Dec-96 14,828 17,989 14,487
Mar-97 14,660 18,471 14,551
Jun-97 16,206 21,696 16,109
Sep-97 17,266 23,321 17,143
Dec-97 18,138 23,991 17,392
Mar-98 20,004 27,335 18,768
Jun-98 20,790 28,237 19,053
Sep-98 19,646 25,433 17,950
Dec-98 22,784 30,845 20,014
Feb-99 22,720 31,135 19,846
The Asset Allocation Fund is organized as a "feeder" fund in a "master-feeder"
structure. Instead of investing directly in the individual securities in the
portfolio, the feeder fund, which is offered to the public, holds interests in
the net assets of the Master Portfolio. It is the Master Portfolio that
actually invests in the individual securities. References to "the fund" are to
the feeder fund or the Master Portfolio. Barclays Global Fund Advisors (BGFA)
advises the Master Portfolio.
7
<PAGE>
Bond Index Fund
<TABLE>
<CAPTION>
Average Annual
PERFORMANCE AS OF 2/28/99 Total Return
- ---------------------------------------------------------------
<S> <C>
One Year 6.24%
Five Year 6.76%
Since Inception Date (7/2/93-2/28/99) 6.21%
</TABLE>
Average annual total return represents the Bond Index Fund's average annual
increase in value during the time periods noted above. These figures assume
that dividends and capital gain distributions have been reinvested in the Fund
at net asset value. The Fund's past performance is no guarantee of future
results. The investment return and principal value of shares of the Fund will
vary with changes in market conditions. Shares of the Fund may be worth more or
less than their original cost when they are redeemed.
A fund's "net asset value," or NAV, is the market value of one share of a fund.
The Bond Index Fund's NAV remained the same at $9.73 on February 28, 1998, and
February 28, 1999. "Net investment income" includes income from dividends and
interest on the Fund's investments after management and administrative fees
have been deducted. Cumulative dividends on net investment income were
approximately $0.60 per share during this period. Of course, past performance
is no guarantee of future results.
The Bond Index Fund tracks the Lehman Brothers Government/ Corporate Bond
Index. For the fiscal year that ended February 28, 1999, the Fund returned
6.24%, while the index returned 6.35% for the same period. The Fund's
performance lagged slightly behind the performance of the index because
administrative and management fees are deducted from the total return, and
because a small percentage of the Fund's assets are invested in low-risk, low-
return money market securities used to process transactions.
The Fund invests in the same proportions of the same securities that comprise
the index it tracks. At the close of the fiscal year, the Fund had invested 54%
of its assets in U.S. Treasury bonds, 33% in long-term corporate bonds, and 13%
in U.S. agency securities.
The bond market fluctuated dramatically during the last fiscal year due to
investors' uncertainty about the strength of the U.S. economy and the
devaluation of the Russian ruble. Economic and political turmoil in foreign
markets such as Brazil and Southeast Asia also contributed to the bond market's
volatility.
During the second quarter of the fiscal year, the Bond Index Fund returned
2.73%. When Japan's economy started to weaken and riots erupted in Indonesia,
bond investors looked to the U.S. market for safety and stability. The Bond
Index Fund benefited from having more
8
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
Bond Index Fund (Continued)
than half of its assets in U.S. Treasury securities, which performed better
than other fixed-income securities. Although a strong economy can lead to
increased inflation, which in turn can cause bond prices to drop, the bond
market rallied as reports showed inflation remained at historically low levels
in the U.S.
Interest rates dropped dramatically in the third quarter of the fiscal year,
partially in response to Russia's devaluation of its currency and concerns that
Brazil would default on its debt. These events created a renewed demand for
high-quality U.S. investments. Even though the U.S. economy did not appear to
be slowing down, the Federal Reserve Board reduced short-term interest rates
from 5.5% to 5.25% to reassure investors that uncertainty in international
markets would not affect the U.S. economy. The bond market rallied and the Bond
Index Fund returned 5.05% for the third quarter of the fiscal year. The U.S.-
government securities and high-quality corporate bonds in which the Fund was
invested contributed to its strong performance during this period.
In the fourth quarter of the fiscal year, investors became more confident that
foreign markets were beginning to stabilize. This increased confidence lessened
the demand for safer, more secure investments, which resulted in lower returns
on bond investments. Despite the Federal Reserve Board's lowering interest
rates to 4.75%, U.S. Treasury security rates rose and the Bond Index Fund
returned only .07% for the quarter.
The first two months of 1999 resulted in negative returns for bondholders.
Inflation remained at record lows, the U.S. economy showed no signs of slowing
down after last year's foreign-market shocks, and some investors were concerned
that the Federal Reserve Board would raise interest rates in the immediate
future. The potential for interest rate hikes and the decreased demand for U.S.
Treasury market securities from international investors caused interest rates
on these securities to rise in January and February 1999. In fact, February was
the worst month for the performance of U.S. Treasury bonds since 1981. The Bond
Index Fund returned -1.89% for the first two months of 1999.
9
<PAGE>
Bond Index Fund (Continued)
[BOND INDEX FUND GRAPH APPEARS HERE]
Lehman Brothers Gov't/Corp Bond Index Bond Index Fund
------------------------------------- ---------------
10,000 10,000
Sep-93 10,332 10,281
Dec-93 10,302 10,230
Mar-94 9,978 9,937
Jun-94 9,854 9,776
Sep-94 9,903 9,820
Dec-94 9,940 9,846
Mar-95 10,435 10,326
Jun-95 11,111 10,998
Sep-95 11,323 11,186
Dec-95 11,851 11,696
Mar-96 11,573 11,397
Jun-96 11,628 11,432
Sep-96 11,832 11,626
Dec-96 12,195 11,945
Mar-97 12,096 11,848
Jun-97 12,516 12,269
Sep-97 12,935 12,891
Dec-97 13,364 13,112
Mar-98 13,576 13,275
Jun-98 13,921 13,638
Sep-98 14,611 14,327
Dec-98 14,630 14,337
Feb-99 14,384 14,066
The Bond Index Fund is organized as a "feeder" fund in a "master-feeder"
structure. Instead of investing directly in the individual securities in the
portfolio, the feeder fund, which is offered to the public, holds interests in
the net assets of the Master Portfolio. It is the Master Portfolio that
actually invests in the individual securities. References to "the fund" are to
the feeder fund or the Master Portfolio. Barclays Global Fund Advisors (BGFA)
advises the Master Portfolio.
10
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
LifePath(R) Funds
<TABLE>
<CAPTION>
Average Annual
PERFORMANCE AS OF 2/28/99 Total Return
- -------------------------------------------------------------
Five Year/Since Dividends
Inception Date From Net
Fund One Year (3/1/94-2/28/99) Investment Income
---- -------- ---------------- -----------------
<S> <C> <C> <C>
LifePath 2000 6.70% 8.24% $0.42
LifePath 2010 10.19% 12.67% $0.38
LifePath 2020 12.42% 15.63% $0.31
LifePath 2030 13.55% 17.76% $0.24
LifePath 2040 15.35% 19.97% $0.14
</TABLE>
Average annual total returns represent the LifePath Funds' average annual
increase in value during the time periods noted above. These figures assume
that dividends and capital gain distributions have been reinvested in the Fund
at net asset value. The Funds' past performance is no guarantee of future
results. The investment return and principal value of shares of the Funds will
vary with changes in market conditions. Shares of the Funds may be worth more
or less than their original cost when they are redeemed.
The Funds are successors to the assets of the institutional class of shares of
the Stagecoach Trust LifePath Funds (the "predecessor funds"), which began op-
erations on March 1, 1994. Performance information for the periods before March
26, 1996, the date the LifePath Funds began operations, reflects the perfor-
mance of the predecessor funds.
The LifePath Funds' objective is growing assets while taking on levels of risk
appropriate to investors' time horizons. The Funds' strategies assume that the
investor will begin to withdraw his or her investment in the decade included in
the Fund's name. For example, investors in LifePath 2040 plan to begin to
withdraw their investments in 2040. Assets in this Fund, therefore, are
invested almost entirely in stocks because investors can wait out the short-
term ups and downs of the markets in return for greater potential rewards over
the long term. By contrast, assets in the LifePath 2000 Fund are invested more
conservatively in short-term, low-risk, bonds and money market instruments,
although about 20% of the Fund's assets are invested in U.S. equity securities.
The models used to manage the LifePath Funds' assets are both "strategic" and
"tactical."
Strategic asset allocation techniques affect 75% of the LifePath Funds' total
asset allocation. The strategic model focuses on long-term asset allocation by
comparing the potential risks and returns for each asset class based on the
Funds' different time horizons and investors' shifting risk tolerances. As each
Fund nears its target date, the asset allocation becomes more conservative,
shifting to less risky investments such as short-term bonds or money market
investments. Short-term volatility in
11
<PAGE>
LifePath(R) Funds (Continued)
the markets has only a small effect on a Fund's long-term strategic allocation.
The progression to less risky assets is an ongoing process; forty years from
now, the asset allocation of the LifePath 2040 Fund will look very similar to
the asset allocation of the LifePath 2000 Fund today.
Tactical asset allocation techniques affect 25% of the LifePath Funds' total
asset allocation. The more conservative tactical approach shifts assets from
long-term bonds to short-term bonds and money market investments as the Fund
nears its target date; the more aggressive tactical approach shifts assets
among stocks, bonds, and cash.
On February 28, 1998, assets in the LifePath Funds were allocated as follows:
<TABLE>
<CAPTION>
U.S. International U.S. Money
Fund Equity Equity Bonds Market*
---- ------ ------------- ----- -------
<S> <C> <C> <C> <C>
LifePath 2000 19% 5% 51% 25%
LifePath 2010 38% 10% 42% 10%
LifePath 2020 55% 15% 25% 5%
LifePath 2030 66% 19% 12% 3%
LifePath 2040 80% 20% 0% 0%
</TABLE>
* The percentage of the Funds' assets that are invested in money market instru-
ments is net of the Funds' other assets and liabilities.
During the past fiscal year, the LifePath 2030 and 2040 Funds invested
primarily in companies that showed greater long-term potential for growth. It
was only toward the end of the fiscal year, as potential earnings from these
stocks appeared less certain, that assets were reallocated to more stable stock
investments with higher current earnings.
The LifePath 2020 and 2010 Funds invested more evenly among stocks and bonds.
They benefited from both significant gains in large-company stock values and
strong bond returns.
The LifePath 2000 Fund's money market investments remained stable throughout
the year, unaffected by the dramatic swings typical of the riskier asset
classes.
12
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
LifePath(R) Funds (Continued)
Assets in the LifePath Funds were allocated as follows on February 28, 1999:
<TABLE>
<CAPTION>
U.S. International U.S. Money
Fund Equity Equity Bonds Market*
---- ------ ------------- ----- -------
<S> <C> <C> <C> <C>
LifePath 2000 14% 6% 56% 24%
LifePath 2010 34% 11% 43% 12%
LifePath 2020 52% 15% 26% 7%
LifePath 2030 63% 19% 14% 3%
LifePath 2040 77% 21% 2% 0%
</TABLE>
* The percentage of the Funds' assets that are invested in money market instru-
ments is net of the Funds' other assets and liabilities.
The returns of the LifePath Funds varied in comparison to their benchmark, the
Lipper Balanced Index. This index represents the average performance of all
balanced funds and does not take into account the different investment
objectives of the LifePath Funds. For the fiscal year that ended February 28,
1999, all LifePath Funds performed as expected relative to this benchmark: the
LifePath 2000 and 2010 Funds lagged behind the index, due primarily to their
significant investments in U.S. bonds and money market instruments, and the
LifePath 2020, 2030, and 2040 Funds performed better than the index, due
primarily to their significant investments in U.S. stocks.
The LifePath Funds will continue to invest in the asset classes appropriate to
their short- and long-term goals in the year ahead.
[LIFEPATH 2000 GRAPH APPEARS HERE]
Lipper Balanced S&P 500 Index LifePath 2000
--------------- ------------- -------------
10,000 10,000 10,000
Mar-94 9,637 9,564 9,855
Jun-94 9,564 9,604 9,765
Sep-94 9,844 10,074 9,878
Dec-94 9,737 10,072 9,825
Mar-95 10,325 11,053 10,330
Jun-95 11,048 12,108 10,881
Sep-95 11,641 13,071 11,180
Dec-95 12,161 13,858 11,533
Mar-96 12,434 14,602 11,585
Jun-96 12,686 15,258 11,674
Sep-96 13,018 15,729 11,891
Dec-96 13,743 17,041 12,263
Mar-97 13,804 17,498 12,246
Jun-97 15,282 20,553 12,925
Sep-97 16,263 22,092 13,375
Dec-97 16,499 22,726 13,577
Mar-98 17,804 25,894 14,120
Jun-98 18,645 26,749 14,330
Sep-98 17,028 24,092 14,324
Dec-98 18,987 29,219 15,000
Feb-99 18,827 29,494 14,858
13
<PAGE>
LifePath(R) Funds (Continued)
[LIFEPATH 2010 GRAPH APPEARS HERE]
Lipper Balanced S&P 500 Index LifePath 2010
--------------- ------------- -------------
10,000 10,000 10,000
Mar-94 9,637 9,564 9,838
Jun-94 9,564 9,604 9,760
Sep-94 9,844 10,074 9,900
Dec-94 9,737 10,072 9,547
Mar-95 10,325 11,053 10,520
Jun-95 11,048 12,108 11,257
Sep-95 11,641 13,071 11,738
Dec-95 12,161 13,858 12,209
Mar-96 12,434 14,602 12,242
Jun-96 12,686 15,258 12,668
Sep-96 13,018 15,729 12,928
Dec-96 13,743 17,041 13,520
Mar-97 13,804 17,498 13,602
Jun-97 15,282 20,553 14,879
Sep-97 16,263 22,092 15,528
Dec-97 16,499 22,726 15,765
Mar-98 17,804 25,894 16,909
Jun-98 18,645 26,749 17,215
Sep-98 17,028 24,092 16,613
Dec-98 18,987 29,219 18,294
Feb-99 18,827 29,494 18,155
[LIFEPATH 2020 GRAPH APPEARS HERE]
Lipper Balanced S&P 500 Index LifePath 2020
--------------- ------------- -------------
10,000 10,000 10,000
Mar-94 9,637 9,564 9,610
Jun-94 9,564 9,604 9,752
Sep-94 9,844 10,074 9,916
Dec-94 9,737 10,072 9,874
Mar-95 10,325 11,053 10,636
Jun-95 11,048 12,108 11,472
Sep-95 11,641 13,071 12,057
Dec-95 12,161 13,858 12,590
Mar-96 12,434 14,602 12,909
Jun-96 12,686 15,258 13,234
Sep-96 13,018 15,729 13,521
Dec-96 13,743 17,041 14,298
Mar-97 13,804 17,498 14,408
Jun-97 15,282 20,553 16,167
Sep-97 16,263 22,092 17,056
Dec-97 16,499 22,726 17,331
Mar-98 17,804 25,894 19,053
Jun-98 18,645 26,749 19,442
Sep-98 17,028 24,092 18,139
Dec-98 18,987 29,219 20,789
Feb-99 18,827 29,494 20,663
14
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
LifePath(R) Funds (Continued)
[LIFEPATH 2030 GRAPH APPEARS HERE]
Lipper Balanced S&P 500 Index LifePath 2030
--------------- ------------- -------------
10,000 10,000 10,000
Mar-94 9,637 9,564 9,711
Jun-94 9,564 9,604 9,510
Sep-94 9,844 10,074 9,875
Dec-94 9,737 10,072 9,857
Mar-95 10,325 11,053 10,682
Jun-95 11,048 12,108 11,637
Sep-95 11,641 13,071 12,300
Dec-95 12,161 13,858 12,928
Mar-96 12,434 14,602 13,305
Jun-96 12,686 15,258 13,710
Sep-96 13,018 15,729 14,025
Dec-96 13,743 17,041 14,946
Mar-97 13,804 17,498 15,080
Jun-97 15,282 20,553 17,220
Sep-97 16,263 22,092 18,284
Dec-97 16,499 22,726 18,608
Mar-98 17,804 25,894 20,792
Jun-98 18,645 26,749 21,297
Sep-98 17,028 24,092 19,349
Dec-98 18,987 29,219 22,835
Feb-99 18,827 29,494 22,641
[LIFEPATH 2040 GRAPH APPEARS HERE]
Lifepath 2030
Lipper Balanced S&P 500 Index LifePath 2040
--------------- ------------- -------------
10,000 10,000 10,000
Mar-94 9,637 9,564 9,652
Jun-94 9,564 9,604 9,821
Sep-94 9,844 10,074 9,977
Dec-94 9,737 10,072 9,955
Mar-95 10,325 11,053 10,829
Jun-95 11,048 12,108 11,799
Sep-95 11,641 13,071 12,564
Dec-95 12,161 13,858 13,194
Mar-96 12,434 14,602 13,739
Jun-96 12,686 15,258 14,287
Sep-96 13,018 15,729 14,640
Dec-96 13,743 17,041 15,655
Mar-97 13,804 17,498 15,892
Jun-97 15,282 20,553 18,472
Sep-97 16,263 22,092 19,645
Dec-97 16,499 22,726 19,859
Mar-98 17,804 25,894 22,625
Jun-98 18,645 26,749 23,179
Sep-98 17,028 24,092 20,488
Dec-98 18,987 29,219 24,938
Feb-99 18,827 29,494 24,841
The LifePath Funds are organized as "feeder" funds in a "master-feeder" struc-
ture. Instead of investing directly in the individual securities in the portfo-
lio, the feeder funds, which are offered to the public, hold interests in the
net assets of the Master Portfolios. It is the Master Portfolios that actually
invest in the individual securities. References to "the fund" are to the feeder
funds or the Master Portfolios. Barclays Global Fund Advisors (BGFA) advises
the Master Portfolios.
15
<PAGE>
Money Market Fund
<TABLE>
<CAPTION>
PERFORMANCE AS OF 2/28/99 Seven-Day Yield
- ---------------------------------------------------------------
<S> <C>
4.58%
</TABLE>
The seven-day yield is an annualized yield for the seven-day period ended Feb-
ruary 28, 1999. "Annualized yield" refers to the interest you would earn if you
held a share of the Money Market Fund for one year; the yield is prorated if
you hold a share of the Fund for a shorter period of time. The yield reflects
fluctuations in interest rates on the Fund's investments and expenses for the
Fund's administration and management.
A fund's "net asset value," or NAV, is the market value of one share of a fund.
The Money Market Fund's NAV remained stable at $1.00 per share from February
28, 1998, to February 28, 1999. "Net investment income" includes income from
dividends and interest on the Fund's investments after management and
administrative fees have been deducted. Cumulative dividends on net investment
income were approximately $0.05 per share during this period. Of course, past
performance is no guarantee of future results.
Through the first seven months of the fiscal year, the Money Market Fund
invested in overnight and short-term investments. The Federal Reserve Board
held short-term interest rates in place through August, remaining cautious due
to the threat of inflation. But by September the devaluation of the Russian
ruble and the ensuing troubles of a prominent fund manager that had invested
heavily in Russia created turmoil in the world markets.
To help global financial markets stabilize, the Federal Reserve Board lowered
interest rates three times in just seven weeks. The Money Market Fund began
purchasing fixed income securities while short-term interest rates declined.
This strategy allowed the Fund to lock in higher rates of investment, which in
turn helped it outpace its benchmark for the year. The Money Market Fund grew
to record levels, ending the fiscal year with $205 million in assets.
As the new fiscal year begins, the Money Market Fund will continue to take
advantage of flexible, high-return investment opportunities within the money
market realm, while maintaining a conservative approach to portfolio
management.
The Money Market Fund is organized as a "feeder" fund in a "master-feeder"
structure. Instead of investing directly in the individual securities in the
portfolio, the feeder fund, which is offered to the public, holds interests in
the net assets of the Master Portfolio. It is the Master Portfolio that
actually invests in the individual securities. References to "the fund" are to
the feeder fund or the Master Portfolio. Barclays Global Fund Advisors (BGFA)
advises the Master Portfolio.
16
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
S&P 500 Stock Fund
<TABLE>
<CAPTION>
Average Annual
PERFORMANCE AS OF 2/28/99 Total Return
- ---------------------------------------------------------------
<S> <C>
One Year 19.50%
Five Year 23.74%
Since Inception Date (7/2/93-2/28/99) 22.02%
</TABLE>
Average annual total return represents the S&P 500 Stock Fund's average annual
increase in value during the time periods noted above. These figures assume
that dividends and capital gain distributions have been reinvested in the Fund
at net asset value. The Fund's past performance is no guarantee of future re-
sults. The investment return and principal value of shares of the Fund will
vary with changes in market conditions. Shares of the Fund may be worth more or
less than their original cost when they are redeemed.
A fund's "net asset value," or NAV, is the market value of one share of a fund.
The S&P 500 Stock Fund's NAV increased from $22.08 on February 28, 1998, to
$24.80 on February 28, 1999. "Net investment income" includes income from
dividends and interest on the Fund's investments after management and
administrative fees have been deducted. Cumulative dividends on net investment
income were approximately $0.34 per share during this period. Of course, past
performance is no guarantee of future results.
The goal of the S&P 500 Stock Fund is to hold all of the stocks in--and match
as closely as possible the performance of--the Standard & Poor's 500 Index. For
the fiscal year ended February 28, 1999, the Fund returned 19.50%; the index
returned 19.74%. The Fund's performance lagged slightly behind the performance
of the index, partially as a result of the administrative and management fees
that are deducted from the Fund, and because a small percentage of the Fund's
assets are invested in low-risk, low-return money market securities used to
process transactions.
The stocks of the 15 largest companies were responsible for half of the index's
return during the last fiscal year; Microsoft, General Electric, Wal-Mart,
Lucent Technologies, and Cisco Systems were the largest contributors,
accounting for 25.2% of the index's total return.
Several major changes to the S&P 500 Index occurred in 1998. Chrysler and Amoco
were removed from the index as a result of their mergers with Daimler Benz and
British Petroleum, respectively. The index also included its first Internet
stock with the addition of America Online. Another technology company, Dell
Computers, had the top-performing stock in the index, returning 249% in 1998.
Although political and economic turmoil abroad could have negatively affected
the companies in the S&P 500 Index, investors purchased
17
<PAGE>
S&P 500 Stock Fund (Continued)
stocks at relatively low prices and prevented the index from any considerable
decline early in the fiscal year. The index gained 4.35% by the end of the
first fiscal quarter.
It wasn't until the summer months of 1998 that the index started to slip.
Investors' worries over global financial events--such as the devaluation of the
Russian ruble and economic struggles in Asia--began to show; the index returned
- -11.93% by the end of the second fiscal quarter. When investors responded to
the difficulties in foreign economies by selling stocks, the Fund took
advantage of the opportunity and bought stocks at lower prices.
U.S. markets rebounded during the third fiscal quarter. The S&P 500 Index
finished the third fiscal quarter with a return of 22.03%, making 1998 the
fourth year in a row in which the index boasted a return greater than 20%. The
performance of the index during the fourth fiscal quarter continued to rebound
with a quarterly return of 6.76% and closed out the fiscal year on February 28,
1999, with a return of 19.73%.
The S&P 500 Stock Fund will continue to invest in the same securities that make
up the S&P 500 Index, tracking the performance of the index as closely as
possible.
[S&P 500 STOCK FUND GRAPH APPEARS HERE]
S&P 500 Stock Fund
S&P 500 Index S&P 500 Stock Fund
------------- ------------------
10,000 10,000
Sep-93 10,258 10,347
Dec-93 10,495 10,569
Mar-94 10,096 10,179
Jun-94 10,139 10,180
Sep-94 10,634 10,652
Dec-94 10,632 10,652
Mar-95 11,568 11,676
Jun-95 12,782 12,782
Sep-95 13,798 13,794
Dec-95 14,628 14,509
Mar-96 15,414 15,398
Jun-96 16,107 16,076
Sep-96 16,604 16,553
Dec-96 17,989 17,914
Mar-97 18,471 18,384
Jun-97 21,696 21,576
Sep-97 23,321 23,177
Dec-97 23,991 23,838
Mar-98 27,335 27,137
Jun-98 28,237 28,016
Sep-98 25,433 25,234
Dec-98 30,845 30,611
Feb-99 31,135 30,847
The S&P 500 Stock Fund is organized as a "feeder" fund in a "master-feeder"
structure. Instead of investing directly in the individual securities in the
portfolio, the feeder fund, which is offered to the public, holds interests in
the net assets of the Master Portfolio. It is the Master Portfolio that
actually invests in the individual securities. References to "the fund" are to
the feeder fund or the Master Portfolio. Barclays Global Fund Advisors (BGFA)
advises the Master Portfolio.
18
<PAGE>
MANAGERS DISCUSSION AND ANALYSIS
U.S. Treasury Allocation Fund
<TABLE>
<CAPTION>
Average Annual
PERFORMANCE AS OF 2/28/99 Total Return
- ---------------------------------------------------------------
<S> <C>
One Year 4.52%
Five Year 5.29%
Since Inception Date (7/2/93-2/28/99) 5.27%
</TABLE>
Average annual total return represents the U.S. Treasury Allocation Fund's av-
erage annual increase in value during the time periods noted above. These fig-
ures assume that dividends and capital gain distributions have been reinvested
in the Fund at net asset value. The Fund's past performance is no guarantee of
future results. The investment return and principal value of shares of the Fund
will vary with changes in market conditions. Shares of the Fund may be worth
more or less than their original cost when they are redeemed.
A fund's "net asset value," or NAV, is the market value of one share of a fund.
The U.S. Treasury Allocation Fund's NAV decreased from $9.40 on February 28,
1998, to $9.38 on February 28, 1999. "Net investment income" includes income
from dividends and interest on the Fund's investments after management and
administrative fees have been deducted. Cumulative dividends on net investment
income were approximately $0.44 per share during this period. Of course, past
performance is no guarantee of future results.
The U.S. Treasury Allocation Fund uses the Tactical Bond Model to select the
optimum mix of securities, which include long-term U.S. Treasury bonds,
intermediate-term U.S. Treasury notes, and short-term cash investments such as
U.S. Treasury bills and a money market fund. The model makes investment
decisions by comparing the potential risk and return over time of each type of
security.
The key word for the U.S. Treasury market during the past fiscal year was
"volatility." During 1998, international economic and political instability
motivated investors to seek out the safer and more stable investments of U.S.
Treasury securities. Early in the year, Federal Reserve Board Chairman Alan
Greenspan reported on the state of the economy to Congress. He noted that the
U.S. economy remained strong, but that the financial turmoil in Asia could
cause the economy to slow. By May 1998 investors had turned to the relative
safety of U.S. Treasury securities as political unrest in Indonesia unfolded.
This market continued to benefit from a "flight to quality" as investors grew
concerned over economic troubles in Japan.
The U.S. Treasury bond market rallied sharply in August as investors sought a
haven from the political and economic crises created by Russia's default on its
domestic debt. The market continued its rally in September, fueled by a global
"flight from risk" and a realization that
19
<PAGE>
U.S. Treasury Allocation Fund (Continued)
turbulence overseas would have a greater impact on the U.S. economy than
investors had previously anticipated. Chairman Greenspan commented, "The U.S.
can't remain an oasis of prosperity in a world that is experiencing greatly
increased stress." To counterbalance the global financial turmoil, the Federal
Reserve Board reduced short-term interest rates for the first time since
January 1996. By October 1998, U.S. Treasury bond rates were at their lowest
levels in a generation. Sixteen days after the first rate cut, the Federal
Reserve Board unexpectedly lowered interest rates to reduce the demand for U.S.
Treasury securities. Another rate cut by the Federal Reserve Board in November
finally calmed the global financial markets.
In January 1999, the bond market's response to Brazil's devaluing its currency
was subdued in comparison to its reaction just several months earlier when
Russia defaulted on its debt; liquidity did not evaporate and riskier sectors
outperformed U.S. Treasury securities. The U.S. Treasury bond market tumbled in
February 1999 as continued economic strength--despite the disruptions caused by
the global turmoil of the last year--led investors to shift abruptly away from
U.S. Treasury bonds. A rate hike by the Federal Reserve Board appeared to be a
real possibility, arousing long-dormant concerns about inflation. As a result,
the U.S. Treasury bond market posted its lowest monthly returns since December
1981.
The increased activity in the U.S. Treasury market during the fiscal year that
ended February 28, 1999, significantly changed yield levels, prompting the Fund
to reallocate its assets among bonds, notes, and bills three times. However,
the differences among the yields of long- and short-term U.S. Treasury
securities was not significant enough to prompt the Fund to invest heavily in
riskier, but generally better-performing, long-term securities.
During August and September--two of the market's most active months of 1998--
the U.S. Treasury Allocation Fund's shorter-term investments led to good
performance. Nonetheless, longer-term securities posted stronger performance
during the same time period. The Fund did not perform as well as its benchmark,
the Lehman Brothers Intermediate Government Bond Index. For the fiscal year
that ended February 28, 1999, the Fund returned 4.52%, compared to 6.20% for
the index.
20
<PAGE>
U.S. Treasury Allocation Fund (Continued)
[U.S. TREASURY ALLOCATION FUND GRAPH APPEARS HERE]
U.S. Treasury Allocation
Lehman Brothers Gov't/Corp Bond Index U.S. Treasury Allocation
------------------------------------- ------------------------
10,000 10,000
Sep-93 10,332 10,601
Dec-93 10,302 10,507
Mar-94 9,978 10,020
Jun-94 9,854 9,843
Sep-94 9,903 9,867
Dec-94 9,940 9,841
Mar-95 10,435 10,338
Jun-95 11,111 10,866
Sep-95 11,323 11,036
Dec-95 11,851 11,359
Mar-96 11,573 11,248
Jun-96 11,628 11,266
Sep-96 11,832 11,479
Dec-96 12,194 11,792
Mar-97 12,096 11,678
Jun-97 12,516 12,088
Sep-97 12,935 12,415
Dec-97 13,364 12,670
Mar-98 13,567 12,844
Jun-98 13,921 13,023
Sep-98 14,611 13,368
Dec-98 14,630 13,436
Feb-99 14,384 13,376
The U.S. Treasury Allocation Fund is organized as a "feeder" fund in a "master-
feeder" structure. Instead of investing directly in the individual securities
in the portfolio, the feeder fund, which is offered to the public, holds
interests in the net assets of the Master Portfolio. It is the Master Portfolio
that actually invests in the individual securities. References to "the fund"
are to the feeder fund or the Master Portfolio. Barclays Global Fund Advisors
(BGFA) advises the Master Portfolio.
21
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Asset Bond
Allocation Index
Fund Fund
- ------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments:
In corresponding Master Portfolio, at market value
(Note 1) $599,023,358 $126,693,777
Receivables:
Fund shares sold 520,489 103,161
Total Assets 599,543,847 126,796,938
LIABILITIES
Payables:
Capital shares redeemed 304,525 42,268
Distribution to shareholders 18,005 3,887
Due to BGI and Stephens (Note 2) 128,399 17,945
Total Liabilities 450,929 64,100
TOTAL NET ASSETS $599,092,918 $126,732,838
Net assets consist of:
Paid-in capital 457,427,521 127,668,181
Undistributed net investment income 15,720 19,349
Undistributed net realized gain (loss) on
investments 5,117,967 259,209
Net unrealized appreciation (depreciation) on
investments 136,531,710 (1,213,901)
TOTAL NET ASSETS $599,092,918 $126,732,838
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
PER SHARE
Net Assets $599,092,918 $126,732,838
Shares outstanding 42,578,165 13,021,489
Net asset value and offering price per share $ 14.07 $ 9.73
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES--FEBRUARY 28, 1999
<TABLE>
<CAPTION>
LifePath LifePath LifePath LifePath
2000 2010 2020 2030
Fund Fund Fund Fund
- ----------------------------------------------------------
<S> <C> <C> <C>
$51,539,699 $132,668,064 $166,156,346 $116,375,884
48,579 286,403 283,454 502,410
51,588,278 132,954,467 166,439,800 116,878,294
295,615 124,988 269,292 119,441
0 0 0 0
11,314 31,719 40,066 29,500
306,929 156,707 309,358 148,941
$51,281,349 $132,797,760 $166,130,442 $116,729,353
47,889,291 113,289,710 131,316,526 89,403,209
279,919 596,809 427,593 182,933
645,785 2,387,773 2,916,838 1,734,347
2,466,354 16,523,468 31,469,485 25,408,864
$51,281,349 $132,797,760 $166,130,442 $116,729,353
$51,281,349 $132,797,760 $166,130,442 $116,729,353
4,447,546 9,290,046 10,143,808 6,285,477
$ 11.53 $ 14.29 $ 16.38 $ 18.57
- -------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999
<TABLE>
<CAPTION>
LifePath
2040
Fund
- -------------------------------------------------------------------------
<S> <C>
ASSETS
Investments:
In corresponding Master Portfolio, at market value (Note 1) $163,629,297
Receivables:
Fund shares sold 555,478
Total Assets 164,184,775
LIABILITIES
Payables:
Capital shares redeemed 264,651
Distribution to shareholders 0
Due to BGI and Stephens (Note 2) 36,688
Total Liabilities 301,339
TOTAL NET ASSETS $163,883,436
Net assets consist of:
Paid-in capital 127,828,563
Undistributed net investment income 98,786
Undistributed net realized gain (loss) on investments 1,334,424
Net unrealized appreciation (depreciation) on investments 34,621,663
TOTAL NET ASSETS $163,883,436
COMPUTATION OF NET ASSET VALUE AND
OFFERING PRICE PER SHARE
Net Assets $163,883,436
Shares outstanding 8,093,491
Net asset value and offering price per share $ 20.25
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES--FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Money S&P U.S. Treasury
Market 500 Stock Allocation
Fund* Fund Fund
- ---------------------------------------------------
<S> <C> <C>
$205,863,273 $2,539,627,466 $35,610,248
410,210 5,401,098 48,916
206,273,483 2,545,028,564 35,659,164
814,990 1,303,035 313,853
723,601 0 2,245
123,275 269,175 4,871
1,661,866 1,572,210 320,969
$204,611,617 $2,543,456,354 $35,338,195
204,673,883 1,388,375,338 39,334,374
0 5,220,729 3,780
(62,266) 100,792,383 (3,705,319)
0 1,049,067,904 (294,640)
$204,611,617 $2,543,456,354 $35,338,195
$204,611,617 $2,543,456,354 $35,338,195
204,673, 388 102,578,738 3,768,853
$ 1.00 $ 24.80 $ 9.38
- ------------------------------------------------------------------------------------------------
</TABLE>
* Beginning September 1, 1998, the Fund invests all of its investable assets in
the Master Investment Portfolio--Money Market Master Portfolio.
25
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Asset Bond
Allocation Index
Fund Fund
- -----------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME
ALLOCATED FROM MASTER PORTFOLIO
Dividends $ 5,940,051 $ 0
Interest 8,449,263 6,773,786
Expenses (1,941,048) (85,135)
Advisory fees 0 0
Net Investment Income (Loss) Allocated from
Master Portfolio 12,448,266 6,688,651
EXPENSES (NOTE 2)
Administration fees 2,215,108 159,900
Total Expenses 2,215,108 159,900
NET INVESTMENT INCOME (LOSS) 10,233,158 6,528,751
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIOS
Net realized gain (loss) on sale of investments 54,934,107 416,912
Net change in unrealized appreciation
(depreciation) of investments 25,525,970 (1,350,936)
Net Gain (Loss) on Investments 80,460,077 (934,024)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $90,693,235 $ 5,594,727
- -----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
STATEMENT OF OPERATIONS--FOR THE YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
LifePath LifePath LifePath LifePath
2000 2010 2020 2030
Fund Fund Fund Fund
- ----------------------------------------------------
<S> <C> <C> <C>
$ 181,561 $ 914,837 $ 1,711,468 $ 1,406,332
2,090,592 3,597,487 2,736,822 1,010,836
(277,316) (673,745) (854,169) (578,335)
0 0 0 0
1,994,837 3,838,579 3,594,121 1,838,833
201,472 489,497 620,553 420,202
201,472 489,497 620,553 420,202
1,793,365 3,349,082 2,973,568 1,418,631
1,698,888 6,309,110 9,614,004 5,933,730
(170,505) 2,184,738 4,629,482 5,860,041
1,528,383 8,493,848 14,243,486 11,793,771
$3,321,748 $11,842,930 $17,217,054 $13,212,402
- -----------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
LifePath
2040
Fund
- -----------------------------------------------------------------------------
<S> <C>
NET INVESTMENT INCOME
ALLOCATED FROM MASTER PORTFOLIO
Dividends $ 2,240,977
Interest 181,307
Expenses (798,585)
Net Investment Income (Loss) Allocated from
Master Portfolio 1,623,699
EXPENSES (NOTE 2)
Advisory fees 0
Administration fees 580,007
Total Expenses 580,007
NET INVESTMENT INCOME (LOSS) 1,043,692
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED
FROM MASTER PORTFOLIOS
Net realized gain (loss) on sale of investments 8,891,692
Net change in unrealized appreciation (depreciation) of
investments 9,602,658
Net Gain (Loss) on Investments 18,494,350
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $19,538,042
- -----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
STATEMENT OF OPERATIONS--FOR THE YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Money S&P U.S. Treasury
Market 500 Stock Allocation
Fund Fund Fund
- -----------------------------------------------
<S> <C> <C>
$ 0 $ 31,501,749 $ 0
9,857,970* 7,241,331 2,300,666
(92,663) (1,164,190) (130,490)
9,765,307 37,578,890 2,170,176
310,377** 0 0
410,994 3,516,796 173,856
721,371 3,516,796 173,856
9,043,936 34,062,094 1,996,320
0 177,407,624 450,904
0 202,382,736 (417,682)
0 379,790,360 33,222
$9,043,936 $413,852,454 $2,029,542
- -----------------------------------------------------------------------------------------------
</TABLE>
* Includes interest income of $4,964,170 for the period from March 1, 1998 to
August 31, 1998. As of September 1, 1998, the Money Market Fund invests all
of its investable assets in the Master Investment Portfolio--Money Market
Master Portfolio. See Note 1 to the Financial Statements.
** This represents the advisory fee from March 1, 1998 to August 31, 1998.
29
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Asset Allocation Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1999 February 28, 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 10,233,158 $ 15,538,218
Net realized gain (loss) on sale of
investments 54,934,107 43,346,185
Net change in unrealized appreciation
(depreciation) of investments 25,525,970 54,041,438
Net increase (decrease) in net assets
resulting from operations 90,693,235 112,925,841
Distributions to shareholders:
From net investment income (10,229,071) (15,569,560)
From net realized gain on sale of
investments (58,094,782) (45,241,548)
Capital share transactions:
Proceeds from shares sold 163,909,555 142,241,923
Net asset value of shares issued in
reinvestment of dividends and
distributions 66,692,075 60,810,816
Cost of shares redeemed (188,624,236) (152,006,433)
Net increase (decrease) in net assets
resulting from capital share
transactions 41,977,394 51,046,306
Increase (Decrease) in Net Assets 64,346,776 103,161,039
NET ASSETS:
Beginning net assets 534,746,142 431,585,103
Ending net assets $ 599,092,918 $534,746,142
SHARES ISSUED AND REDEEMED:
Shares sold 11,550,910 11,061,652
Shares issued in reinvestment of
dividends and distributions 4,826,308 4,795,265
Shares redeemed (13,399,789) (11,869,232)
Net increase (decrease) in shares
outstanding 2,977,429 3,987,685
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Bond Index Fund
- ----------------------------------------------
For the For the
Year Ended Year Ended
February 28, 1999 February 28, 1998
- ----------------------------------------------
<S> <C>
$ 6,528,751 $ 7,019,694
416,912 835,418
(1,350,936) 1,840,981
5,594,727 9,696,093
(6,537,256) (7,045,500)
0 0
78,080,680 45,025,402
6,494,980 7,037,685
(50,676,715) (90,406,487)
33,898,945 (38,343,400)
32,956,416 (35,692,807)
93,776,422 129,469,229
$126,732,838 $ 93,776,422
7,837,305 4,679,516
656,638 738,294
(5,111,552) (9,514,575)
3,382,391 (4,096,765)
- -----------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2000 Fund LifePath 2010 Fund
-------------------------- --------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
February 28, February 28, February 28, February 28,
1999 1998 1999 1998
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
Operations:
Net investment income
(loss) $ 1,793,365 $ 1,864,159 $ 3,349,082 $ 3,002,621
Net realized gain
(loss) on sale of
investments 1,698,888 1,498,004 6,309,110 4,019,123
Net change in
unrealized
appreciation
(depreciation) of
investments (170,505) 1,944,125 2,184,738 9,867,032
Net increase (decrease)
in net assets resulting
from operations 3,321,748 5,306,288 11,842,930 16,888,776
Distributions to
shareholders:
From net investment
income (1,809,857) (1,873,768) (3,245,688) (2,934,746)
From net realized gain
on sale of investments (1,632,961) (1,080,895) (5,426,869) (3,244,853)
Capital share
transactions:
Proceeds from shares
sold 44,372,545 29,570,107 73,827,903 50,184,554
Net asset value of
shares issued in
reinvestment of
dividends and
distributions 3,420,944 2,954,663 8,568,968 6,179,586
Cost of shares redeemed (45,122,536) (32,722,692) (65,205,094) (41,841,291)
Net increase (decrease)
in net assets resulting
from capital share
transactions 2,670,953 (197,922) 17,191,777 14,522,849
Increase (Decrease) in
Net Assets 2,549,883 2,153,703 20,362,150 25,232,026
NET ASSETS:
Beginning net assets 48,731,466 46,577,763 112,435,610 87,203,584
Ending net assets $ 51,281,349 $ 48,731,466 $132,797,760 $112,435,610
SHARES ISSUED AND
REDEEMED:
Shares sold 3,816,244 2,609,621 5,194,348 3,799,100
Shares issued in
reinvestment of
dividends and
distributions 295,053 263,425 604,498 470,053
Shares redeemed (3,879,872) (2,902,215) (4,595,128) (3,183,053)
Net increase (decrease)
in shares outstanding 231,425 (29,169) 1,203,718 1,086,100
- ---------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2020 Fund LifePath 2030 Fund LifePath 2040 Fund
- -------------------------- -------------------------- --------------------------
For the For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
February 28, February 28, February 28, February 28, February 28, February 28,
1999 1998 1999 1998 1999 1998
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 2,973,568 $ 2,871,213 $ 1,418,631 $ 1,265,246 $ 1,043,692 $ 970,721
9,614,004 5,546,369 5,933,730 2,589,572 8,891,692 5,450,601
4,629,482 19,345,820 5,860,041 14,546,285 9,602,658 18,871,946
17,217,054 27,763,402 13,212,402 18,401,103 19,538,042 25,293,268
(2,978,200) (2,828,349) (1,417,840) (1,235,853) (1,057,777) (981,497)
(8,769,910) (4,577,018) (5,160,220) (2,146,403) (8,814,742) (5,040,363)
67,339,663 62,320,047 56,355,321 48,861,763 112,055,069 85,516,198
11,647,048 7,405,367 6,505,176 3,382,255 9,691,788 6,021,811
(66,522,416) (47,300,299) (48,074,692) (30,529,151) (94,130,285) (53,683,581)
12,464,295 22,425,115 14,785,805 21,714,867 27,616,572 37,854,428
17,933,239 42,783,150 21,420,147 36,733,714 37,282,095 57,125,836
148,197,203 105,414,053 95,309,206 58,575,492 126,601,341 69,475,505
$166,130,442 $148,197,203 $116,729,353 $ 95,309,206 $163,883,436 $126,601,341
4,154,258 4,313,443 3,124,879 3,096,468 5,707,846 4,987,356
724,566 509,421 362,006 214,342 498,483 355,815
(4,159,232) (3,266,331) (2,682,069) (1,965,323) (4,856,678) (3,168,342)
719,592 1,556,533 804,816 1,345,487 1,349,651 2,174,829
- -----------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Money Market Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1999 February 28, 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 9,043,936 $ 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 9,043,936 9,450,300
Distributions to shareholders:
From net investment income (9,043,936) (9,455,062)
From net realized gain on sale of
investments 0 0
Capital share transactions:
Proceeds from shares sold 240,959,138 219,618,386
Net asset value of shares issued in
reinvestment of dividends and
distributions 8,796,812 9,251,485
Cost of shares redeemed (225,467,337) (225,588,287)
Net increase (decrease) in net assets
resulting from capital shares
transactions 24,288,613 3,281,584
Increase (Decrease) in Net Assets 24,288,613 3,276,822
NET ASSETS:
Beginning net assets 180,323,004 177,046,182
Ending net assets $ 204,611,617 $ 180,323,004
SHARES ISSUED AND REDEEMED:
Shares sold 240,959,138 219,618,386
Shares issued in reinvestment of
dividends and distributions 8,796,812 9,251,485
Shares redeemed (225,467,337) (225,588,287)
Net increase (decrease) in shares
outstanding 24,288,613 3,281,584
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
S&P 500 Stock Fund
- -----------------------------------------------------------------------------
For the For the
Year Ended Year Ended
February 28, 1999 February 28, 1998
- ---------------------------
<S> <C>
$ 34,062,094 $ 31,240,614
177,407,624 67,662,285
202,382,736 444,494,109
413,852,454 543,397,008
(34,259,853) (30,121,261)
(116,355,328) (39,697,846)
1,128,532,649 859,737,151
149,487,247 69,792,808
(1,290,233,516) (533,699,383)
(12,213,620) 395,830,576
251,023,653 869,408,477
2,292,432,701 1,423,024,224
$ 2,543,456,354 $2,292,432,701
48,280,596 44,359,193
6,314,659 3,561,316
(55,820,972) (27,667,316)
(1,225,717) 20,253,193
- ------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. Treasury Allocation Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1999 February 28, 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 1,996,320 $ 2,679,863
Net realized gain (loss) on sale of
investments 450,904 497,222
Net change in unrealized appreciation
(depreciation) of investments (417,682) 384,199
Net increase (decrease) in net assets
resulting from operations 2,029,542 3,561,284
Distributions to shareholders:
From net investment income (2,003,524) (2,677,544)
From net realized gain on sale of
investments 0 (122,957)
Capital share transactions:
Proceeds from shares sold 24,648,366 13,761,242
Net asset value of shares issued in
reinvestment of dividends and
distributions 1,962,950 2,800,446
Cost of shares redeemed (38,540,057) (17,623,970)
Net increase (decrease) in net assets
resulting from capital shares
transactions (11,928,741) (1,062,282)
Increase (Decrease) in Net Assets (11,902,723) (301,499)
NET ASSETS:
Beginning net assets 47,240,918 47,542,417
Ending net assets $35,338,195 $ 47,240,918
SHARES ISSUED AND REDEEMED:
Shares sold 2,604,266 1,474,632
Shares issued in reinvestment of
dividends and distributions 207,990 301,293
Shares redeemed (4,069,367) (1,897,079)
Net increase (decrease) in shares
outstanding (1,257,111) (121,154)
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
37
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period is as follows:
<TABLE>
<CAPTION>
Asset Allocation Fund
------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
February February February February February
28, 1999 28, 1998 28, 1997 29, 1996 28, 1995
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning
of period $13.50 $12.12 $11.83 $9.93 $10.19
Income from investment
operations:
Net investment income
(loss) 0.26 0.44 0.47 0.40 0.44
Net realized and
unrealized gain (loss) on
investments 2.07 2.68 1.02 1.90 (0.14)
Total from investment
operations 2.33 3.12 1.49 2.30 0.30
Less distributions:
From net investment income (0.26) (0.44) (0.47) (0.40) (0.44)
From net realized gains (1.50) (1.30) (0.73) 0.00 (0.12)
Total distributions (1.76) (1.74) (1.20) (0.40) (0.56)
Net Asset Value, end of
period $14.07 $13.50 $12.12 $11.83 $9.93
Total return (not
annualized) 17.83% 27.10% 13.09% 23.54% 3.28%
Ratios/Supplemental data:
Net assets, end of period (000) $599,093 $534,746 $431,585 $397,930 $293,696
Number of shares outstand-
ing, end of period (000) 42,578 39,601 35,613 33,634 29,585
Ratios to average net
assets+:
Ratio of expenses to
average net assets(/1/) 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment
income (loss) to average
net assets(/2/) 1.84% 3.37% 3.95% 3.62% 4.62%
Portfolio turnover++ 33% 57% 43% 40% 24%*
- -----------------------------------------------------------------------------------
(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%
(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%
- -----------------------------------------------------------------------------------
</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.
++ Represents the Portfolio turnover of each Fund's corresponding Master Port-
folio.
38
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Bond Index Fund
- ---------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
February 28, February 28, February 28, February 29, February 28,
1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$9.73 $9.43 $9.66 $9.20 $9.76
0.60 0.64 0.63 0.64 0.64
-- 0.30 (0.23) 0.46 (0.56)
0.60 0.94 0.40 1.10 0.08
(0.60) (0.64) (0.63) (0.64) (0.64)
-- 0.00 0.00 0.00 0.00
(0.60) (0.64) (0.63) (0.64) (0.64)
$9.73 $9.73 $9.43 $9.66 $9.20
6.24% 10.36% 4.32% 12.17% 1.12%
$126,733 $93,776 $129,469 $58,090 $18,593
13,021 9,639 13,736 6,016 2,020
0.23% 0.23% 0.23% 0.23% 0.23%
6.10% 6.66% 6.69% 6.67% 7.08%
28% 59% 39% 21% 14%*
- -----------------------------------------------------------------------------
N/A N/A 0.32% 0.53% 0.71%
N/A N/A 6.60% 6.37% 6.61%
- -----------------------------------------------------------------------------
</TABLE>
39
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period is as follows:
<TABLE>
<CAPTION>
LifePath 2000 Fund
-------------------------------
Period
From
March 26,
1996
(Commence-
ment of
Year Year Operations)
Ended Ended to
February February February
28, 1999 28, 1998 28, 1997
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period $11.56 $10.97 $10.55
Income from investment operations:
Net investment income (loss) 0.42 0.46 0.39
Net realized and unrealized gain (loss) on
investments 0.34 0.85 0.35
Total from investment operations 0.76 1.31 0.74
Less distributions:
From net investment income (0.42) (0.46) (0.32)
From net realized gains (0.37) (0.26) (0.00)
Total distributions (0.79) (0.72) (0.32)
Net Asset Value, end of period $11.53 $11.56 $10.97
Total return (not annualized) 6.70% 12.32% 7.00%
Ratios/Supplemental data:
Net assets, end of period (000) $51,281 $48,731 $46,578
Number of shares outstanding, end of period
(000) 4,448 4,216 4,245
Ratios to average net assets+:
Ratio of expenses to average net assets(/1/) 0.95% 0.95% 0.95%
Ratio of net investment income (loss) to
average net assets(/2/) 3.55% 4.06% 4.21%
Portfolio turnover++ 66% 39% 108%
- ------------------------------------------------------------------------------
(1) Ratio of expenses to average net assets
prior to waived fees and reimbursed
expenses N/A N/A N/A
(2) Ratio of net investment income (loss) to
average net assets prior to waived fees
and reimbursed expenses N/A N/A N/A
- ------------------------------------------------------------------------------
</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.
++ Represents the Portfolio turnover of each Fund's corresponding Master
Portfolio.
40
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LifePath 2010 Fund LifePath 2020 Fund
- ------------------------------------- -----------------------------------------
Period Period
From From
March 26, March 26,
1996 1996
(Commence- (Commence-
ment of ment of
Year Year Operations) Year Year Operations)
Ended Ended to Ended Ended to
February February February February February February
28, 1999 28, 1998 28, 1997 28, 1999 28, 1998 28, 1997
- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$13.90 $12.46 $11.44 $15.73 $13.40 $11.97
0.38 0.40 0.33 0.31 0.33 0.29
1.01 1.87 0.96 1.58 2.84 1.40
1.39 2.27 1.29 1.89 3.17 1.69
(0.38) (0.40) (0.27) (0.31) (0.33) (0.24)
(0.62) (0.43) 0.00 (0.93) (0.51) (0.02)
(1.00) (0.83) (0.27) (1.24) (0.84) (0.26)
$14.29 $13.90 $12.46 $16.38 $15.73 $13.40
10.19% 18.73% 11.98% 12.42% 24.25% 15.06%
$132,798 $112,436 $87,204 $166,130 $148,197 $105,414
9,290 8,086 7,000 10,144 9,424 7,868
0.95% 0.95% 0.95% 0.95% 0.95% 0.95%
2.73% 3.09% 3.26% 1.91% 2.28% 2.57%
38% 46% 73% 36% 41% 61%
- ------------------------------------------------------------------------------------
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>
41
<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
March 26, 26, 1996
1996 (Commence-
(Commence- ment of
Year Year ment of Year Year Operations)
Ended Ended Operations) Ended Ended to
February February to February February February February
28, 1999 28, 1998 28, 1997 28, 1999 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) 0.24 0.26 0.23 0.14 0.18 0.18
Net realized and
unrealized gain (loss)
on investments 2.06 3.65 1.79 2.67 4.41 2.27
Total from investment
operations 2.30 3.91 2.02 2.81 4.59 2.45
Less distributions:
From net investment
income (0.24) (0.26) (0.20) (0.14) (0.19) (0.15)
From net realized gains (0.88) (0.43) (0.04) (1.19) (0.84) 0.00
Total distributions (1.12) (0.69) (0.24) (1.33) (1.03) (0.15)
Net Asset Value, end of
period $18.57 $17.39 $14.17 $20.25 $18.77 $15.21
Total return (not
annualized) 13.55% 28.22% 17.37% 15.35% 30.95% 20.47%
Ratios/Supplemental
data:
Net assets, end of
period (000) $116,729 $95,309 $58,575 $163,883 $126,601 $69,476
Number of shares
outstanding, end of
period (000) 6,285 5,481 4,135 8,093 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/) 1.35% 1.72% 2.05% 0.72% 1.04% 1.46%
Portfolio turnover++ 19% 27% 42% 19% 34% 48%
- -------------------------------------------------------------------------------------------
(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.
++ Represents the Portfolio turnover of each Fund's corresponding Master
Portfolio.
42
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Money Market Fund
- ---------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
February February February February February
28, 1999 28, 1998 28, 1997 29, 1996 28, 1995
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1.00 $1.00 $1.00 $1.00 $1.00
0.05 0.05 0.05 0.05 0.04
0.00 0.00 0.00 0.00 0.00
0.05 0.05 0.05 0.05 0.04
(0.05) (0.05) (0.05) (0.05) (0.04)
0.00 0.00 0.00 0.00 0.00
(0.05) (0.05) (0.05) (0.05) (0.04)
$1.00 $1.00 $1.00 $1.00 $1.00
5.15% 5.35% 5.10% 5.60% 4.40%
$205,317 $180,375 $177,046 $156,852 $147,269
205,378 180,437 177,103 156,910 147,280
0.45% 0.45% 0.45% 0.45% 0.45%
4.62% 5.23% 4.96% 5.44% 4.44%
N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------
N/A N/A 0.48% 0.49% 0.57%
N/A N/A 4.93% 5.40% 4.32%
- ----------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period is as follows:
<TABLE>
<CAPTION>
S&P 500 Stock Fund
------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
February February February February February
28, 1999 28, 1998 28, 1997 29, 1996 28, 1995
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
beginning of period $22.08 $17.03 $14.02 $10.83 $10.50
Income from investment
operations:
Net investment income
(loss) 0.34 0.33 0.32 0.31 0.27
Net realized and
unrealized gain (loss)
on investments 3.87 5.46 3.23 3.36 0.41
Total from investment
operations 4.21 5.79 3.55 3.67 0.68
Less distributions:
From net investment
income (0.34) (0.33) (0.32) (0.30) (0.27)
From net realized gains (1.15) (0.41) (0.22) (0.18) (0.08)
In excess of net
realized gains 0.00 0.00 0.00 0.00 0.00
Total distributions (1.49) (0.74) (0.54) (0.48) (0.35)
Net Asset Value, end of
period $24.80 $22.08 $17.03 $14.02 $10.83
Total return (not
annualized) 19.50% 34.62% 25.82% 34.35% 6.71%
Ratios/Supplemental
data:
Net assets, end of
period (000) $2,543,456 $2,292,433 $1,423,024 $882,696 $448,776
Number of shares out-
standing, end of pe-
riod (000) 102,579 103,804 83,551 62,951 41,427
Ratios to average net
assets+:
Ratio of expenses to
average net
assets(/1/) 0.20% 0.20% 0.20% 0.20% 0.21%
Ratio of net investment
income to average net
assets(/2/) 1.45% 1.73% 2.15% 2.52% 2.93%
Portfolio turnover++ 11% 6% 4% 2% 8%*
- ----------------------------------------------------------------------------------
(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%
(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%
- ----------------------------------------------------------------------------------
</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.
++ Represents the Portfolio turnover of each Fund's corresponding Master Port-
folio.
44
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. Treasury Allocation Fund
- ------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
February February February February February
28, 1999 28, 1998 28, 1997 29, 1996 28, 1995
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$9.40 $9.24 $9.35 $8.99 $9.67
0.44 0.55 0.56 0.51 0.59
(0.02) 0.19 (0.11) 0.36 (0.68)
0.42 0.74 0.45 0.87 (0.09)
(0.44) (0.55) (0.56) (0.51) (0.59)
0.00 (0.03) 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
(0.44) (0.58) (0.56) (0.51) (0.59)
$9.38 $9.40 $9.24 $9.35 $8.99
4.52% 8.18% 4.99% 9.89% (0.76)%
$35,338 $47,241 $47,542 $51,632 $56,852
3,769 5,026 5,147 5,522 6,324
0.70% 0.70% 0.70% 0.70% 0.70%
4.58% 5.89% 6.03% 5.47% 6.52%
195% 76% 196% 325% 43%*
- --------------------------------------------------------------------------------------------
N/A N/A 0.71% N/A 0.72%
N/A N/A 6.02% N/A 6.50%
- --------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS
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: Asset Allocation, Bond Index, LifePath 2000, LifePath 2010,
LifePath 2020, LifePath 2030, LifePath 2040, Money Market, S&P 500 Stock 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 invests all of its assets in a separate series (each a "Master
Portfolio") of Master Investment Portfolio. Each Master Portfolio has the same
investment objective as the Fund bearing the corresponding name. As of
September 1, 1998, the Money Market Fund invests all of its assets in the Money
Market Master Portfolio. Prior to September 1, 1998, the Money Market Fund
invested directly in individual portfolio securities. 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%, 31.53%, 44.15%, 54.47%,
45.38%, 42.04%, 33.22%, 78.38%, 68.88% and 99.99% for the Asset Allocation,
Bond Index, LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030,
LifePath 2040, Money Market, S&P 500 Stock and U.S. Treasury Allocation Funds,
respectively, as of February 28, 1999). Investments of each Master Portfolio,
except the Money Market Fund, 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
46
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS
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 Master Investment Portfolio uses the amortized cost method
to value its portfolio securities, the Fund 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 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.
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 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.
Dividends and Distributions to Shareholders
Dividends to shareholders from net investment income of the Asset Allocation,
Bond Index, and U.S. Treasury Allocation Funds are declared and distributed
monthly. Dividends to shareholders from net investment income of the LifePath
2000, LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040 and S&P 500
Stock Funds are declared and
47
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS
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, 1999. The following Funds had
net capital loss carryforwards at December 31, 1998, the tax year end of the
funds:
<TABLE>
<CAPTION>
Year Net Capital
Fund Expires Loss Carryforward
- --------------------------------------------------------
<S> <C> <C>
Bond Index Fund 2005 $ 958
Money Market Fund 2003 57,505
Money Market Fund 2005 4,761
U.S. Treasury Allocation Fund 2002 3,267,116
U.S. Treasury Allocation Fund 2004 48,556
</TABLE>
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 Advisors ("BGFA") is entitled to receive a monthly fee at
an annual rate of 0.10% of the average daily net assets of the Master Portfolio
as compensation for its advisory
48
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS
services. BGFA is a direct subsidiary of Barclays Global Investors, NA, which
is an indirect subsidiary of Barclays Bank PLC. As of September 1, 1998, BGFA
no longer engages an investment sub-advisor for the Money Market Fund.
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. IBT also serves as the
transfer agent and dividend disbursement agent for 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.
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%
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 0.35%
S&P 500 Stock Fund 0.15%
U.S. Treasury Allocation Fund 0.40%
</TABLE>
Certain officers and directors of the Company are also officers of Stephens.
As of February 28, 1999, Stephens owned less than 1% of the outstanding shares
of each Fund.
49
<PAGE>
MASTERWORKS FUNDS INC.
NOTES TO THE FINANCIAL STATEMENTS
3. Capital Shares Transactions
As of February 28, 1999, there were 13.9 billion shares of $.001 par value
capital stock authorized by the Company. As of February 28, 1999, each Fund,
except the Money Market, S&P 500 Stock, 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
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 February 28, 1999, 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 risks to the
Portfolios of securities lending are that the borrower may not provide
additional collateral when required or return the securities when due. The
value of the securities on loan and the value of the related collateral are
disclosed in the corresponding Master Portfolio financial statements.
50
<PAGE>
Independent Auditors' Report
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors
MasterWorks Funds Inc.:
We have audited the accompanying statements of assets and liabilities, of Mas-
terWorks Funds Inc. (comprising respectively, Asset Allocation Fund, Bond Index
Fund, LifePath 2000 Fund, LifePath 2010 Fund, LifePath 2020 Fund, LifePath 2030
Fund, LifePath 2040 Fund, Money Market Fund, S&P 500 Stock Fund, and U.S. Trea-
sury Allocation Fund) as of February 28, 1999, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period then ended, and the financial high-
lights for the periods indicated herein. These financial statements and finan-
cial highlights are the responsibility of the Company's management. Our respon-
sibility is to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall fi-
nancial statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds of MasterWorks Funds Inc. as of February 28, 1999,
the results of their operations for the year then ended, the changes in their
net assets for each of the years in the two-year period then ended and their
financial highlights for the periods indicated herein, in conformity with gen-
erally accepted accounting principles.
[LOGO KPMG APPEARS HERE]
San Francisco, California
April 2, 1999
51
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
52
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS-81.49%
ADVERTISING-0.09%
Omnicom Group 8,144 $ 539,540
-----------
TOTAL ADVERTISING
- VALUE $ 539,540
- COST $ 337,891
AEROSPACE & DEFENSE-1.09%
Allied Signal Inc 27,041 $ 1,118,821
Boeing Co 48,335 1,718,913
Briggs & Stratton Corp 1,142 55,744
General Dynamics Corp 6,117 369,696
Lockheed Martin Corp 18,894 712,068
Northrop Grumman Corp 3,335 207,812
Rockwell International Corp 9,252 411,136
Textron Inc 7,663 597,714
United Technologies Corp 10,902 1,350,485
-----------
TOTAL AEROSPACE & DEFENSE
- VALUE $ 6,542,389
- COST $ 6,253,147
AIRLINES-0.38%
AMR Corp+ 8,803 $ 488,016
Delta Air Lines Inc 6,912 420,336
FDX Corp+ 7,135 681,393
Southwest Airlines Co 16,239 489,200
USAirways Group Inc+ 4,238 200,775
-----------
TOTAL AIRLINES
- VALUE $ 2,279,720
- COST $ 1,710,152
APPAREL-0.21%
Fruit of the Loom Inc Class A+ 3,479 $ 44,140
Liz Claiborne Inc 3,148 106,048
Nike Inc Class B 13,848 742,599
Reebok International Ltd+ 2,736 44,118
Russell Corp 1,730 33,735
VF Corp 5,810 279,606
-----------
TOTAL APPAREL
- VALUE $ 1,250,246
- COST $ 1,243,439
</TABLE>
53
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
AUTO PARTS & EQUIPMENT-0.50%
Cooper Tire & Rubber Co 3,708 $ 73,233
Dana Corp 7,992 301,698
Deluxe Corp 3,911 132,485
Eaton Corp 3,454 239,621
Genuine Parts Co 8,724 261,175
Goodyear Tire & Rubber Co 7,526 348,078
Illinois Tool Works Inc 12,090 831,188
ITT Industries Inc 5,035 196,680
Navistar International Corp+ 3,236 139,148
PACCAR Inc 3,786 158,539
The Pep Boys--Manny Moe & Jack 2,525 46,081
TRW Inc 5,781 273,152
------------
TOTAL AUTO PARTS & EQUIPMENT
- VALUE $ 3,001,078
- COST $ 2,858,405
AUTOMOBILES-1.01%
Daimler-ChryslerAG+ 9 $ 845
Ford Motor Co 58,440 3,466,223
General Motors Corp Class A 31,671 2,614,837
------------
TOTAL AUTOMOBILES
- VALUE $ 6,081,905
- COST $ 3,838,716
BANK & FINANCE-10.16%
American Express Corp 21,822 $ 2,367,687
Associates First Capital Corp 34,904 1,417,975
Bank of New York Inc 36,749 1,283,918
Bank One Corp 56,566 3,040,423
BankAmerica Corp 83,607 5,460,582
BankBoston Corp 14,250 576,234
Bankers Trust Corp 4,601 400,287
BB&T Corp 14,266 540,325
Bear Stearns Co Inc 5,734 245,487
Capital One Financial Corp 3,175 405,209
Chase Manhattan 40,922 3,258,414
Citigroup Inc 109,785 6,449,869
Comerica Inc 7,508 497,405
Countrywide Credit Industries Inc 5,377 203,654
Equifax Inc 7,119 268,742
Federal Home Loan Mortgage Corp 32,857 1,934,456
</TABLE>
54
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Federal National Mortgage Assoc 50,164 $ 3,511,480
Fifth Third Bancorp 12,894 851,810
First Union Corp 47,924 2,554,948
Firstar Corp 11,113 930,714
Fleet Financial Group Inc 27,540 1,182,499
Franklin Resources Inc 12,217 388,653
Golden West Financial 2,759 259,174
Household International Inc 23,313 947,091
Huntington Bancshares Inc 10,190 323,533
Keycorp 22,034 710,597
Lehman Brothers Holdings 5,600 296,800
MBNA Corp 38,797 940,827
Mellon Bank Corp 12,608 852,616
Mercantile Bancorp 7,581 345,883
Merrill Lynch & Co Inc 17,186 1,319,026
MGIC Investment Corp 5,311 180,906
Morgan (J P) & Co Inc 8,450 941,647
Morgan Stanley Dean Witter 27,884 2,523,502
National City Corp 15,969 1,115,834
Northern Trust Corp 5,360 479,050
PNC Bank Corp 14,546 757,301
Regions Financial Corp 10,752 408,576
Republic New York Corp 5,200 235,625
Ryder System Inc 3,496 94,392
Schwab (Charles) Corp 19,422 1,448,153
SLM Holding Corp 8,000 343,000
State Street Boston Corp 7,748 594,175
Summit Bancorp 8,380 323,678
SunTrust Banks Inc 15,335 1,041,801
Synovus Financial Corp 12,974 308,943
U.S. Bancorp 35,139 1,135,429
Union Planters Corp 6,602 298,328
Wachovia Corp 9,789 832,677
Washington Mutual Inc 28,743 1,149,720
Wells Fargo & Co 78,252 2,875,761
------------
TOTAL BANK & FINANCE
- VALUE $ 60,854,816
- COST $ 48,357,207
</TABLE>
55
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
BASIC INDUSTRIES-1.04%
Alcoa Inc 17,752 $ 718,956
ASARCO Inc 1,992 28,137
Avery-Dennison Corp 5,634 302,475
Baker Hughes Inc 15,862 285,516
Bemis Co 2,554 86,996
Boise Cascade Corp 2,736 84,987
Champion International Corp 4,623 171,051
Cyprus Amax Minerals 4,437 49,916
Dover Corp 10,772 366,248
Fort James Corp 10,644 317,990
Georgia-Pacific Corp 4,264 312,338
Harnischfeger Industries Inc 2,326 17,881
Homestake Mining Co 11,560 106,208
Ikon Office Solutions Inc 6,591 93,098
Inco Ltd 8,093 102,174
Louisiana-Pacific Corp 5,278 96,983
Mead Corp 4,995 152,035
Minnesota Mining & Manufacturing Co 19,436 1,439,479
NACCO Industries Inc Class A 411 36,168
Newmont Mining Corp 8,129 140,225
Potlatch Corp 1,409 48,875
Sealed Air Corp+ 4,068 206,451
Union Camp Corp 3,354 224,299
Westvaco Corp 4,900 109,638
Weyerhauser Co 9,607 535,590
Willamette Industries Inc 5,372 195,742
------------
TOTAL BASIC INDUSTRIES
- VALUE $ 6,229,456
- COST $ 6,878,854
Beverages-2.28%
Anheuser-Busch Inc 23,072 $ 1,769,334
Coca-Cola Co 119,110 7,615,596
Coca-Cola Enterprises Co 18,951 587,481
Coors (Adolph) Co Class B 1,823 108,582
Pepsico Inc 70,917 2,668,252
Seagrams Co Ltd 19,034 882,702
------------
TOTAL BEVERAGES
- VALUE $ 13,631,947
- COST $ 12,001,072
</TABLE>
56
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
BROADCASTING-0.99%
Clear Channel Communications Inc+ 12,782 $ 766,920
Kingworld Productions+ 3,558 94,065
MediaOne Group Inc+ 29,301 1,596,905
Tele-Communications Inc Class A+ 26,057 1,636,705
Tribune Co 5,733 380,170
Viacom Inc Class B+ 16,794 1,484,170
------------
TOTAL BROADCASTING
- VALUE $ 5,958,935
- COST $ 2,992,042
BUILDING MATERIALS & SERVICES-0.34%
Cooper Industries Inc 5,015 $ 219,406
Corning Inc 11,183 598,291
Danaher Corp 6,482 312,757
Owens Corning Fiberglass Corp 2,639 83,953
Owens Illinois Inc+ 7,501 179,555
PPG Industries Inc 8,554 445,343
Snap-On Inc 2,871 81,106
Stanley Works 4,322 105,079
------------
TOTAL BUILDING MATERIALS & SERVICES
- VALUE $ 2,025,490
- COST $ 2,117,026
BUSINESS SERVICES-0.48%
Cendant Corp+ 41,242 $ 683,071
Dun & Bradstreet Corp 8,100 277,425
Ecolab Inc 6,273 250,136
Paychex Inc 7,895 334,551
Waste Management Inc 27,731 1,355,353
------------
TOTAL BUSINESS SERVICES
- VALUE $ 2,900,536
- COST $ 3,065,053
CHEMICALS-1.43%
Air Products & Chemicals Inc 11,174 $ 358,965
Clorox Co 5,257 621,969
Dow Chemical Co 10,686 1,051,235
Du Pont (E I) De Nemours 54,380 2,790,374
Eastman Chemical Co 3,840 181,200
FMC Corp+ 1,614 82,617
Goodrich (B F) Co 3,614 123,328
</TABLE>
57
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Grace (W R) Co+ 3,613 $ 48,550
Great Lakes Chemical Corp 2,878 112,062
Hercules Inc 4,856 134,451
International Flavor & Fragrances 5,145 211,910
Monsanto Co 30,300 1,380,544
Morton International Inc 5,898 213,065
Nalco Chemical Co 3,192 89,775
Praxair Inc 7,618 266,154
Rohm & Haas Co 8,038 251,188
Rubbermaid Inc 7,283 240,794
Sigma-Aldrich Corp 4,880 128,710
Union Carbide Corp 6,439 283,316
------------
TOTAL CHEMICALS
- VALUE $ 8,570,207
- COST $ 8,670,917
COMPUTER SOFTWARE-5.74%
3Com Corp+ 17,315 $ 544,340
Adobe Systems Inc 3,173 127,713
America Online Inc 44,330 3,942,599
Autodesk Inc 2,241 89,920
Automatic Data Processing 29,168 1,159,428
BMC Software Inc+ 10,405 425,304
Ceridian Corp+ 3,467 248,324
Computer Associates International Inc 25,988 1,091,496
Computer Sciences Corp 7,659 510,281
Compuware Corp+ 8,931 499,578
Electronic Data Systems Corp 23,790 1,106,235
First Data Corp 21,404 818,703
IMS Health Inc 15,492 549,966
Microsoft Corp+ 120,463 18,084,508
Novell Inc+ 17,100 331,313
Oracle Systems Corp+ 47,015 2,626,963
Parametric Technology Corp+ 13,201 202,965
Peoplesoft Inc+ 11,253 212,400
Sun Microsystems Inc+ 18,422 1,792,691
------------
TOTAL COMPUTER SOFTWARE
- VALUE $ 34,364,727
- COST $ 20,672,089
</TABLE>
58
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
COMPUTER SYSTEMS-5.12%
Apple Computer Inc+ 6,500 $ 226,281
Cabletron Systems Inc+ 7,984 64,870
Cisco Systems Inc+ 76,262 7,459,377
Compaq Computer Corp 82,143 2,895,541
Data General Corp+ 2,438 33,675
Dell Computer Corp+ 61,496 4,927,367
EMC Corp+ 24,224 2,479,932
Gateway 2000 Inc+ 7,546 548,500
Harris Corp 3,861 120,174
Hewlett-Packard Co 50,175 3,333,502
International Business Machine Corp 45,127 7,671,590
Seagate Technology Inc+ 11,871 343,517
Shared Medical System Corp 1,289 65,739
Silicon Graphics Inc+ 9,097 144,983
Unisys Corp+ 12,321 367,320
Unova Inc+ 67 972
------------
TOTAL COMPUTER SYSTEMS
- VALUE $ 30,683,340
- COST $ 15,978,332
CONTAINER & PACKAGING-0.22%
Ball Corp 1,477 $ 61,849
Crown Cork & Seal Co 5,938 164,780
International Paper Co 14,860 624,120
Smurfit-Stone Container Corp+ 2 36
Temple-Inland Inc 2,701 161,891
Tenneco Inc 8,243 246,775
Tupperware Corp 2,792 48,860
------------
TOTAL CONTAINER & PACKAGING
- VALUE $ 1,308,311
- COST $ 1,598,009
ELECTRICAL EQUIPMENT-3.16%
Aeroquip-Vickers Inc 1,355 $ 76,727
General Electric Co 158,340 15,883,481
Grainger (W W) Inc 4,607 205,012
Masco Corp 16,376 429,870
Motorola Inc 29,052 2,040,903
National Service Industries Inc 2,022 64,957
</TABLE>
59
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Raychem Corp 3,851 $ 87,851
Thomas & Betts Corp 2,763 115,183
------------
TOTAL ELECTRICAL EQUIPMENT
- VALUE $ 18,903,984
- COST $ 13,152,502
ELECTRONICS-3.65%
Advanced Micro Devices+ 6,981 $ 124,785
AMP Inc 10,562 561,766
Applied Materials Inc+ 17,914 996,466
CBS Corp 34,194 1,260,904
EG&G Inc 2,193 58,115
Emerson Electric Co 21,265 1,221,408
General Instrument Corp+ 8,064 235,872
Honeywell Inc 6,079 425,150
Intel Corp 80,509 9,656,048
Johnson Controls Inc 4,105 252,458
KLA Instruments Corp+ 4,199 217,561
LSI Logic Corp+ 6,827 177,075
Micron Technology Inc+ 11,312 651,854
National Semiconductor+ 8,055 84,578
Perkin-Elmer Corp 2,414 228,727
Pitney Bowes Inc 13,179 832,748
Raytheon Co Class B 16,340 873,169
Solectron Corp+ 11,372 508,186
Tektronix Inc 2,316 45,162
Texas Instruments Inc 18,878 1,683,682
Xerox Corp 31,658 1,747,126
------------
TOTAL ELECTRONICS
- VALUE $ 21,842,840
- COST $ 14,551,372
ENERGY & RELATED-4.59%
Amerada Hess Corp 4,382 $ 198,833
Anadarko Petroleum Corp 5,815 159,913
Apache Corp 4,744 94,584
Ashland Inc 3,712 165,184
Atlantic Richfield Corp 15,510 847,234
BP Amoco PLC ADR (Great Britain) 1 85
Burlington Resources Inc 8,557 277,033
Chevron Corp 31,576 2,427,405
</TABLE>
60
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Coastal Corp 10,267 $ 328,544
Columbia Gas System Inc 4,047 204,348
Consolidated Natural Gas Co 4,645 255,185
Eastern Enterprises 1,100 42,281
Enron Corp 15,969 1,037,985
Exxon Corp 117,470 7,819,097
Halliburton Co 21,262 600,652
Helmerich & Payne Inc 2,456 40,064
Kerr-McGee Corp 2,303 65,779
Mobil Corp 37,738 3,139,330
NICOR Inc 2,330 88,977
Occidental Petroleum Corp 16,801 253,065
ONEOK Inc 1,524 41,053
Oryx Energy Co+ 5,180 53,743
Peoples Energy Corp 1,689 57,320
Phillips Petroleum Co 12,317 476,514
Rowan Co Inc+ 4,047 34,905
Royal Dutch Petroleum Corp 103,629 4,546,722
Schlumberger Ltd 26,357 1,279,962
Sonat Offshore Drilling Co 5,349 135,397
Sunoco Inc 4,543 138,278
Texaco Inc 25,806 1,201,592
Union Pacific Resources Group 12,131 108,421
Unocal Corp 11,654 328,497
USX--Marathon Group 14,849 307,189
Williams Co Inc 20,686 765,382
------------
TOTAL ENERGY & RELATED
- VALUE $ 27,520,553
- COST $ 27,511,916
ENGINEERING & CONSTRUCTION-0.09%
Armstrong World Industries Inc 1,954 $ 96,112
Centex Corp 2,890 106,388
Fleetwood Enterprises Inc 1,696 55,014
Fluor Corp 3,680 129,490
Foster Wheeler Corp 2,024 25,300
Kaufman & Broad Home Corp 2,309 51,953
Pulte Corp 2,089 50,267
------------
TOTAL ENGINEERING & CONSTRUCTION
- VALUE $ 514,524
- COST $ 605,209
</TABLE>
61
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
ENTERTAINMENT & LEISURE-1.39%
Brunswick Corp 4,678 $ 99,700
Disney (Walt) Co 99,021 3,484,301
Harrah's Entertainment Inc+ 6,183 103,179
Hasbro Inc 6,343 234,691
Mattel Inc 13,888 366,296
Mirage Resorts Inc+ 8,700 169,650
Polaroid Corp 2,135 50,973
Time Warner Inc 59,257 3,822,077
------------
TOTAL ENTERTAINMENT & LEISURE
- VALUE $ 8,330,867
- COST $ 5,767,288
ENVIRONMENTAL CONTROL-0.04%
Browning-Ferris Industries Inc 8,409 $ 264,884
------------
TOTAL ENVIRONMENTAL CONTROL
- VALUE $ 264,884
- COST $ 285,646
FOOD & RELATED-3.18%
Albertson's Inc 11,870 $ 676,590
American Stores Co 13,282 448,268
Archer-Daniels-Midland Co 28,741 434,708
Bestfoods 13,816 648,489
Brown-Forman Corp Class B 3,328 219,440
Campbell Soup Co 21,630 869,256
ConAgra Inc 23,657 712,667
Darden Restaurants Inc 6,764 148,808
General Mills Inc 7,397 596,845
Great Atlantic & Pacific Tea Co 1,850 58,391
Heinz (H J) Co 17,551 955,433
Hershey Foods Corp 6,910 430,148
Kellogg Co 19,599 725,163
Kroger Co+ 12,388 801,349
McDonald's Corp 32,741 2,782,985
Pioneer Hi Bred International Inc 11,663 273,352
Quaker Oats Co 6,578 359,323
Ralston-Purina Group 15,073 406,029
RJR Nabisco Holdings Corp 15,682 428,315
Safeway Inc+ 23,473 1,355,566
Sara Lee Corp 44,203 1,201,769
</TABLE>
62
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Super Value Inc 5,854 $ 140,862
Sysco Corp 16,130 455,673
Tricon Global Restaurants+ 7,383 457,746
Unilever NV (Netherlands) 30,983 2,244,331
UST Inc 8,977 265,383
Wendy's International Inc 6,053 144,894
Winn-Dixie Stores Inc 7,170 314,136
Wrigley (W M) Jr Co 5,622 522,846
------------
TOTAL FOOD & RELATED
- VALUE $ 19,078,765
- COST $ 15,777,172
FURNITURE & APPLIANCES-0.07%
Maytag Corp 4,360 $ 244,433
Whirlpool Corp 3,694 160,689
------------
TOTAL FURNITURE & APPLIANCES
- VALUE $ 405,122
- COST $ 345,990
HEALTHCARE-0.45%
Cardinal Health Inc 12,505 $ 902,705
HCR Manor Care Inc+ 5,426 121,407
Healthsouth Corp+ 20,528 238,638
McKesson HBOC Inc 13,154 894,472
St Jude Medical Inc+ 4,077 102,435
United Healthcare Corp 8,990 443,319
------------
TOTAL HEALTHCARE
- VALUE $ 2,702,976
- COST $ 2,933,276
HOSPITAL & MEDICAL SUPPLIES-1.95%
Bard (C R) Inc 2,607 $ 146,970
Bausch & Lomb Inc 2,725 164,352
Baxter International Inc 13,808 971,738
Becton Dickinson & Co 11,960 400,660
Biomet Inc 5,441 199,617
Boston Scientific Corp+ 19,008 503,712
Columbia/HCA Healthcare Corp 31,207 557,825
Guidant Corp 14,564 830,148
Johnson & Johnson 64,939 5,544,167
Mallinckrodt Group Inc 3,475 107,508
</TABLE>
63
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Medtronic Inc 27,587 $ 1,948,332
Tenet Healthcare Corp+ 14,949 294,308
------------
TOTAL HOSPITAL & MEDICAL SUPPLIES
- VALUE $ 11,669,337
- COST $ 9,137,523
HOUSEHOLD PRODUCTS-1.94%
Alberto-Culver Co Class B 2,682 $ 64,368
Avon Products Inc 12,706 528,887
Colgate-Palmolive Co 14,136 1,199,793
Gillette Co 53,574 2,872,906
Kimberly-Clark Corp 26,161 1,236,107
Procter & Gamble Co 64,072 5,734,444
------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 11,636,505
- COST $ 9,469,289
INSURANCE-3.06%
Aetna Inc 6,914 $ 512,068
Allstate Corp 39,711 1,489,163
American General Corp 12,170 891,453
American International Group Inc 59,758 6,808,677
Aon Corp 8,216 484,231
Chubb Corp 7,866 469,994
CIGNA Corp 9,982 783,587
Cincinnati Financial Corp 8,062 282,674
Conseco Inc 15,232 456,008
Hartford Financial Services Group 11,289 610,312
Humana Inc+ 8,131 142,293
Jefferson-Pilot Corp 5,116 346,929
Lincoln National Corp 4,877 461,791
Loews Corp 5,488 429,093
Marsh & McLennan Companies Inc 12,440 880,908
MBIA Inc 4,796 295,254
Progressive Corp Ohio 3,499 449,622
Provident Co Inc 6,553 214,611
Providian Financial Corp 6,836 698,127
SAFECO Corp 6,578 264,353
St Paul Co 11,381 368,460
Torchmark Corp 6,773 225,194
</TABLE>
64
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Transamerica Corp 6,038 $ 438,132
UNUM Corp 6,680 298,930
------------
TOTAL INSURANCE
- VALUE $ 18,301,864
- COST $ 13,949,738
LODGING-0.11%
Hilton Hotels Corp 12,640 $ 199,870
Marriott International 12,076 434,736
------------
TOTAL LODGING
- VALUE $ 634,606
- COST $ 562,599
MACHINERY-0.40%
Black & Decker Corp 4,259 $ 207,626
Case Corp 3,548 69,186
Caterpillar Inc 17,319 789,097
Cummins Engine Co Inc 2,029 83,189
Deere & Co 11,516 376,429
Ingersoll-Rand Co 7,937 377,008
McDermott International Inc 2,870 57,221
Milacron Inc 1,864 33,203
Pall Corp 6,038 127,930
Parker Hannifin Corp 5,289 196,354
Thermo Electron Corp+ 7,727 106,729
------------
TOTAL MACHINERY
- VALUE $ 2,423,972
- COST $ 2,876,395
MANUFACTURING-0.39%
Tyco International Ltd 31,185 $ 2,321,333
------------
TOTAL MANUFACTURING
- VALUE $ 2,321,333
- COST $ 1,388,002
METAL FABRICATORS-0.33%
Alcan Aluminum Ltd 10,990 $ 267,194
Allegheny Teledyne Inc 9,473 195,381
Barrick Gold Corp 18,109 320,303
Battle Mountain Gold Co 11,176 37,719
Bethlehem Steel Corp+ 6,393 56,338
</TABLE>
65
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Crane Co 3,316 $ 90,983
Engelhard Corp 6,966 124,082
Freeport McMoRan Inc+ 8,087 76,321
Nucor Corp 4,251 189,435
Phelps Dodge Corp 2,816 136,576
Placer Dome Inc 12,187 133,295
Reynolds Metals Co 3,131 133,850
Timken Co 3,048 53,912
USX--U.S. Steel Group 4,303 108,920
Worthington Industries Inc 4,537 57,563
------------
TOTAL METAL FABRICATORS
- VALUE $ 1,981,872
- COST $ 2,633,714
PHARMACEUTICALS-7.74%
Abbott Laboratories 73,346 $ 3,406,005
Allergan Inc 3,162 257,703
ALZA Corp+ 4,187 219,556
American Home Products Corp 63,666 3,788,127
Amgen Inc+ 12,288 1,534,464
Bristol-Myers Squibb Co 48,053 6,051,675
Lilly (Eli) & Co 53,192 5,036,618
Merck & Co Inc 115,096 9,409,098
Millipore Corp 2,128 59,318
Pfizer Inc 62,759 8,280,266
Pharmacia and Upjohn Inc 24,528 1,336,776
Schering-Plough Corp 70,997 3,971,395
SouthTrust Corp 6,800 272,425
Warner Lambert Co 39,745 2,744,889
------------
TOTAL PHARMACEUTICALS
- VALUE $ 46,368,315
- COST $ 27,678,856
PUBLISHING-0.75%
American Greetings Corp Class A 3,438 $ 81,438
Comcast Corp Class A 17,883 1,268,575
Donnelley (R R) & Sons Co 6,556 224,543
Dow Jones & Co Inc 4,541 213,427
Gannett Co Inc 13,596 863,346
Interpublic Group Co Inc 6,673 499,224
Knight-Ridder Inc 3,813 191,365
McGraw-Hill Inc 4,750 519,828
</TABLE>
66
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Meredith Corp 2,551 $ 86,096
Moore Corp Ltd 4,337 45,539
New York Times Co Class A 8,833 273,823
Times Mirror Co Class A 3,859 215,380
------------
TOTAL PUBLISHING
- VALUE $ 4,482,584
- COST $ 3,124,978
RETAIL & RELATED-5.09%
AutoZone Inc+ 7,404 $ 259,140
Circuit City Stores Inc 4,864 263,872
Consolidated Stores Corp+ 5,309 133,720
Costco Co Inc+ 10,466 840,551
CVS Corp 18,907 1,002,071
Dayton-Hudson Corp 21,312 1,333,332
Dillards Inc Class A 5,192 129,151
Dollar General Corp 8,964 268,360
Eastman Kodak Co 15,640 1,035,173
Federated Department Stores Inc+ 9,917 377,466
Fred Myer Inc+ 7,459 479,241
Gap Inc 27,975 1,809,633
Harcourt General Inc 3,446 157,870
Home Depot Inc 71,212 4,250,466
Jostens Inc 1,742 40,828
K Mart Corp+ 23,902 418,285
Kohls Corp+ 7,637 526,953
Limited Inc 11,036 391,778
Longs Drug Stores Corp 1,898 68,684
Lowe's Co Inc 17,090 1,013,651
May Department Stores Co 11,296 669,288
Newell Co 7,852 333,710
Nordstrom Inc 7,192 289,478
Penney (J C) Co Inc 12,283 443,723
Rite Aid Corp 12,500 517,188
Sears Roebuck & Co 18,521 752,416
Sherwin Williams Co 8,301 199,743
Staples Inc+ 22,580 663,994
Tandy Corp 4,802 267,111
TJX Companies Inc 15,556 444,318
Toys R Us Inc+ 12,677 179,063
</TABLE>
67
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Walgreen Co 48,154 $ 1,540,928
WalMart Stores Inc 108,842 9,401,228
------------
TOTAL RETAIL & RELATED
- VALUE $ 30,502,413
- COST $ 18,274,099
SERVICES-0.14%
Block (H R) Inc 4,875 $ 221,203
Public Service Enterprise Group 11,018 418,684
Service Corp International 13,250 203,719
------------
TOTAL SERVICES
- VALUE $ 843,606
- COST $ 922,176
TELECOMMUNICATIONS-8.75%
Airtouch Communications+ 27,614 $ 2,514,600
Alltel Corp 13,266 794,302
Ameritech Corp 53,277 3,482,984
Andrew Corp+ 4,189 63,359
Ascend Communications Inc+ 10,489 806,997
AT & T Corp 87,256 7,165,899
Bell Atlantic Corp 74,990 4,307,238
BellSouth Corp 94,504 4,370,810
Frontier Corp 8,314 298,784
GTE Corp 46,681 3,028,430
Lucent Technologies Inc 63,593 6,458,664
MCI WorldCom Inc+ 88,565 7,306,613
NEXTEL Communications Class A+ 13,927 418,680
Northern Telecom Ltd 31,482 1,827,924
SBC Communication Inc 94,513 4,997,375
Scientific-Atlanta Inc 3,660 118,721
Sprint Corp 20,793 1,784,299
Sprint Corp (PCS Group)+ 20,104 643,328
Tellabs Inc+ 9,377 750,746
U.S. West Inc 24,260 1,293,361
------------
TOTAL TELECOMMUNICATIONS
- VALUE $ 52,433,114
- COST $ 30,331,780
</TABLE>
68
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
TEXTILES-0.01%
Springs Industries Inc Class A 867 $ 28,828
------------
TOTAL TEXTILES
- VALUE $ 28,828
- COST $ 41,559
TOBACCO-0.81%
Fortune Brands Inc 8,256 $ 248,712
Philip Morris Co Inc 117,655 4,603,252
------------
TOTAL TOBACCO
- VALUE $ 4,851,964
- COST $ 4,998,597
TRANSPORTATION-0.61%
Burlington Northern Santa Fe 22,680 $ 751,275
Carnival Corp Class A 28,840 1,283,380
CSX Corp 10,539 413,656
Laidlaw Inc Class B 16,012 123,092
Norfolk Southern Corp 18,341 514,694
Union Pacific Corp 11,966 560,906
------------
TOTAL TRANSPORTATION
- VALUE $ 3,647,003
- COST $ 3,951,908
UTILITIES-1.71%
AES Corp+ 8,743 $ 325,130
Ameren Corp 6,624 247,158
American Electric Power Inc 9,260 385,448
Baltimore Gas & Electric Co 7,219 184,987
Carolina Power & Light Co 7,305 291,287
Central & South West Corp 10,286 255,221
Cinergy Corp 7,669 223,839
Consolidated Edison Inc 11,278 527,247
Dominion Resources Inc 9,431 364,272
DTE Energy Co 7,027 277,567
Duke Power Co 17,542 997,701
Edison International 17,066 435,183
Entergy Corp 11,905 336,316
FirstEnergy Corp 11,446 334,796
FPL Group Inc 8,750 450,078
</TABLE>
69
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
GPU Inc 6,200 $ 247,225
New Century Energies Inc 5,538 224,635
Niagara Mohawk Power Corp+ 9,135 133,599
Northern States Power Co 7,390 190,754
Pacificorp 14,454 259,269
PECO Energy Co 10,816 383,292
PG & E Corp 18,501 582,782
PP & L Resources Inc 7,338 187,119
Reliant Energy Inc 13,733 368,216
Sempra Energy 11,587 243,327
Southern Co 33,765 846,235
Texas Utilities Co 13,653 579,399
Unicom Corp 10,484 372,837
------------
TOTAL UTILITIES
- VALUE $ 10,254,919
- COST $ 9,761,393
------------
TOTAL COMMON STOCKS
- VALUE $488,169,393
- COST $358,605,328
</TABLE>
70
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity
Principal Security Name Rate Date Value
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES-17.82%
U.S. TREASURY BONDS-17.82%
$ 4,600,000 U.S. Treasury Bonds 8.88% 02/15/19 $ 6,231,565
2,350,000 U.S. Treasury Bonds 8.75 05/15/20 3,171,031
5,775,000 U.S. Treasury Bonds 8.75 08/15/20 7,803,469
1,300,000 U.S. Treasury Bonds 8.50 02/15/20 1,712,344
6,350,000 U.S. Treasury Bonds 8.13 08/15/19 8,062,519
3,300,000 U.S. Treasury Bonds 8.13 05/15/21 4,222,970
2,650,000 U.S. Treasury Bonds 8.13 08/15/21 3,395,313
7,950,000 U.S. Treasury Bonds 8.00 11/15/21 10,076,625
3,300,000 U.S. Treasury Bonds 7.88 02/15/21 4,116,750
2,175,000 U.S. Treasury Bonds 7.63 11/15/22 2,669,134
3,000,000 U.S. Treasury Bonds 7.63 02/15/25 3,730,314
3,200,000 U.S. Treasury Bonds 7.50 11/15/24 3,918,000
4,900,000 U.S. Treasury Bonds 7.25 08/15/22 5,768,221
5,420,000 U.S. Treasury Bonds 7.13 02/15/23 6,317,688
2,200,000 U.S. Treasury Bonds 6.88 08/15/25 2,517,625
2,950,000 U.S. Treasury Bonds 5.25 08/15/26 3,335,344
2,450,000 U.S. Treasury Bonds 6.63 02/15/27 2,731,750
3,300,000 U.S. Treasury Bonds 6.50 11/15/26 3,620,720
3,100,000 U.S. Treasury Bonds 6.38 08/15/27 3,353,813
2,950,000 U.S. Treasury Bonds 6.38 11/15/28 2,784,492
5,875,000 U.S. Treasury Bonds 6.25 08/15/23 6,201,797
5,900,000 U.S. Treasury Bonds 6.13 11/15/27 6,193,159
2,775,000 U.S. Treasury Bonds 6.00 02/15/26 2,854,781
2,000,000 U.S. Treasury Bonds 5.50 08/15/28 1,938,126
------------
$106,727,550
TOTAL U.S. TREASURY
SECURITIES
- VALUE $106,727,550
- COST $ 99,759,915
SHORT TERM INSTRUMENTS-4.17%
CASH EQUIVALENTS-3.69%
$ 1,079,841 Dreyfus Institutional Money
Market Fund++ $ 1,079,841
1,000,000 Janus International Money
Market Fund++ 1,000,000
20,000,000 Merrimac Cash Fund-Premium
Class++ 20,000,000
------------
$ 22,079,841
</TABLE>
71
<PAGE>
MASTER INVESTMENT PORTFOLIO--ASSET ALLOCATION MASTER PORTFOLIO--FEBRUARY 28,
1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity
Principal Security Name Rate Date Value
<C> <S> <C> <C> <C>
SHORT TERM INSTRUMENTS (Continued)
REPURCHASE AGREEMENTS-0.48%
$2,880,217 Morgan Stanley Triparty
Repurchase Agreement dated
2/26/99 due 3/1/99, with a
maturity value of $2,881,304
and an effective yield of
4.53% collateralized by U.S.
Treasury Bonds with a rate of
9.875%, a maturity date of
11/15/15, and a market value
of $2,895,691 and U.S.
Treasury Notes with a rate of
6.50%, a maturity date of
08/31/01, and a market value
of $51,572. $ 2,880,217
------------
TOTAL SHORT TERM INSTRUMENTS
- VALUE $ 24,960,058
- COST $ 24,960,058
TOTAL INVESTMENTS IN SECURITIES
(Cost $483,325,301)* (Notes 1 and 3) 103.48 % $619,857,001
Other Assets and Liabilities, Net (3.48)% (20,833,625)
------ ------------
TOTAL NET ASSETS 100.00 % $599,023,376
====== ============
- -----------------------------------------------------------------------------
</TABLE>
+ Non-income earning securities.
++ Represents collateral received from securities lending transactions. See
Note 4.
* Cost for federal income tax purposes is $483,944,153 and net unrealized ap-
preciation consists of:
<TABLE>
<S> <C>
Gross Unrealized
Appreciation $150,274,385
Gross Unrealized
Depreciation $(14,361,537)
------------
NET UNREALIZED
APPRECIATION $135,912,848
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
72
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity
Principal Security Name Rate Date Value
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES-30.35%
AEROSPACE & DEFENSE-0.25%
$ 1,000,000 Lockheed Martin Corp 6.85% 05/15/01 $ 1,020,841
AUTO PARTS & EQUIPMENT-0.25%
$ 1,000,000 Goodyear Tire & Rubber Co 6.63% 12/01/06 $ 1,016,725
AUTOMOBILES-2.22%
$ 3,500,000 Chrysler Corp 7.45% 03/01/27 $ 3,854,197
500,000 Ford Motor Co 8.88 04/01/06 574,423
4,500,000 General Motors 5.80 04/09/01 4,497,939
------------
$ 8,926,559
BANK & FINANCE-11.72%
$ 500,000 ABN Amro Bank NV 7.30% 12/01/26 $ 487,367
500,000 African Development Bank 7.75 12/15/01 526,158
1,000,000 American General Finance 5.88 07/01/00 1,002,148
1,000,000 Associates Corp NA 6.95 11/01/18 1,030,566
2,500,000 Associates Corp NA 6.25 11/01/08 2,496,400
1,000,000 Bank Of New York Co 6.50 12/01/03 1,016,017
1,000,000 BankAmerica Corp 6.25 04/01/08 993,326
1,000,000 CIT Group Holdings 6.63 06/15/05 1,024,901
1,000,000 Citigroup Inc 7.88 05/15/25 1,096,128
1,000,000 Commercial Credit Corp 8.70 06/15/10 1,159,789
1,000,000 Diageo PLC 6.13 08/15/05 999,590
1,000,000 Dresdner Bank AG 6.63 09/15/05 1,012,754
2,000,000 Duke Energy Corp 6.00 12/01/28 1,842,340
1,285,000 Financing Corp 9.80 04/06/18 1,815,501
2,000,000 First Union Capital Corp 8.04 12/01/26 2,132,048
500,000 First Union Corp 6.63 07/15/05 509,332
5,400,000 Ford Motor Credit Co 6.50 02/28/02 5,473,240
1,000,000 General Motors Acceptance Corp 7.12 05/01/03 1,036,619
1,000,000 Household Finance Corp 6.70 06/15/02 1,022,044
4,000,000 Houston Lighting & Power Co 6.50 04/21/03 4,046,232
450,000 Interamerica Development Bank 8.50 03/15/11 544,559
200,000 Interamerica Development Bank 8.40 09/01/09 236,824
3,500,000 KFW International Finance 7.63 02/15/04 3,788,302
250,000 KFW International Finance Inc 8.00 02/15/10 292,757
500,000 Lehman Brothers Inc 9.88 10/15/00 524,357
1,000,000 Mellon Capital II 7.99 01/15/27 1,064,589
3,000,000 Mellon Financial 6.00 03/01/04 2,977,647
1,000,000 Merrill Lynch & Co Inc 6.38 10/15/08 992,643
500,000 Skandinaviska Enskilda 6.88 02/15/09 507,669
</TABLE>
73
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity
Principal Security Name Rate Date Value
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES-(Continued)
$ 1,500,000 U.S. West Capital Funding Inc 6.88% 07/15/28 $ 1,527,588
4,000,000 Westdeutsche NY 6.05 01/15/09 3,903,004
------------
$ 47,082,439
BEVERAGES-0.75%
$ 1,500,000 Anheuser Busch 9.00% 12/01/09 $ 1,856,070
1,000,000 Coca-Cola Enterprises 8.00 09/15/22 1,136,569
------------
$ 2,992,639
BROADCASTING-2.30%
$ 2,000,000 Comcast Cable Communications 8.38% 05/01/07 $ 2,251,298
1,000,000 TCI Communications Inc 7.12 02/15/28 1,055,964
2,000,000 Time Warner Inc 9.63 05/01/02 2,207,308
3,500,000 Viacom Inc 7.75 06/01/05 3,727,129
------------
$ 9,241,699
CHEMICALS-0.39%
$ 1,000,000 American Home Product 6.50% 10/15/02 $ 1,022,342
500,000 Dow Chemical Co 8.62 04/01/06 560,080
------------
$ 1,582,422
ELECTRONICS-1.20%
$ 1,000,000 Raytheon Co 7.38% 07/15/25 $ 998,736
3,800,000 Raytheon Co 5.95 03/15/01 3,813,042
------------
$ 4,811,778
ENERGY & RELATED-0.25%
$ 1,000,000 Phillips 66 Capital Trust II 8.00% 01/15/37 $ 1,015,358
ENTERTAINMENT & LEISURE-1.83%
$ 500,000 Disney (Walt) Co 6.75% 03/30/06 $ 521,721
4,000,000 Disney (Walt) Co 5.13 12/15/03 3,908,188
2,500,000 Time Warner Entertainment 8.38 03/15/23 2,912,433
------------
$ 7,342,342
FOOD & RELATED-0.27%
$ 500,000 Archer-Daniels-Midland Co 8.38% 04/15/17 $ 594,860
500,000 McDonald's Corp 6.75 02/15/03 503,326
------------
$ 1,098,186
HEALTHCARE-0.26%
$ 1,000,000 Baxter International Inc 7.63% 11/15/02 $ 1,053,751
INSURANCE-0.25%
$ 1,000,000 Aetna Services Inc 7.12% 08/15/06 $ 1,013,676
</TABLE>
74
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity
Principal Security Name Rate Date Value
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES-(Continued)
INVESTMENT BANKING & BROKERAGE-1.59%
$ 4,000,000 Merrill Lynch & Co 6.00% 02/17/09 $ 3,853,060
1,500,000 Morgan Stanley Group Inc 6.70 05/01/01 1,518,521
1,000,000 Salomon Inc 6.50 03/01/00 1,005,831
------------
$ 6,377,412
MANUFACTURING-0.87%
$ 500,000 ICI Wilmington 8.75% 05/01/01 $ 518,644
3,000,000 Tyco Intl Group 6.88 01/15/29 2,961,360
------------
$ 3,480,004
PHARMACEUTICALS-0.13%
$ 500,000 American Home Products 7.70% 02/15/00 $ 510,552
PUBLIC ADMINISTRATION-1.42%
$ 1,500,000 Northern State Power 6.50% 03/01/28 $ 1,502,523
1,500,000 Saks Inc 7.50 12/01/10 1,539,132
2,600,000 Tennessee Valley 6.25 12/15/17 2,642,949
------------
$ 5,684,604
RETAIL & RELATED-0.85%
$ 2,000,000 Walmart 8.50% 09/15/24 $ 2,294,440
1,000,000 Walmart 7.25 06/01/13 1,107,548
------------
$ 3,401,988
SERVICES-0.52%
$ 2,000,000 Amoco Canada 7.25% 12/01/02 $ 2,089,280
TELECOMMUNICATIONS-1.85%
$ 250,000 Bell Telephone Canada 9.50% 10/15/10 $ 311,613
2,500,000 Motorola Inc 7.50 05/15/25 2,698,100
500,000 New York Telecom 6.00 04/15/08 502,829
4,000,000 Sprint Cap Corp 6.13 11/15/08 3,937,884
------------
$ 7,450,426
TRANSPORTATION-0.28%
$ 1,000,000 Norfolk Southern Corp 7.80% 05/15/27 $ 1,126,231
UTILITIES-0.90%
$ 1,500,000 Central Power & Lighting Inc 7.50% 12/01/02 $ 1,577,964
1,000,000 Texas Utilities 6.38 01/01/08 992,152
1,000,000 Virginia Electric & Power Co 7.38 07/01/02 1,047,271
------------
$ 3,617,387
------------
TOTAL CORPORATE BONDS & NOTES $121,936,299
(Cost $122,523,026)
</TABLE>
75
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity
Principal Security Name Rate Date Value
<C> <S> <C> <C> <C>
FOREIGN GOVERNMENT BONDS & NOTES++-2.37%
$ 1,000,000 British Columbia (Province of) 6.50% 01/15/26 $ 1,001,420
2,000,000 Hydro Quebec 8.40 01/15/22 2,391,820
1,200,000 New Brunswick 7.63 06/29/04 1,295,784
3,300,000 Ontario (Province of) 7.75 06/04/02 3,493,347
750,000 Ontario (Province of) 7.63 06/22/04 810,030
500,000 Victoria 8.45 10/01/01 532,053
------------
TOTAL FOREIGN GOVERNMENT BONDS & NOTES $ 9,524,454
(Cost $9,430,061)
U.S. GOVERNMENT AGENCY SECURITIES-11.35%
FEDERAL AGENCY-OTHER-0.13%
$ 500,000 Tennessee Valley Authority 6.13% 07/15/03 $ 508,281
FEDERAL HOME LOAN BANK-2.34%
$ 1,000,000 Federal Home Loan Bank 5.50% 01/21/03 $ 993,436
1,500,000 Federal Home Loan Bank 5.40 01/15/03 1,485,102
500,000 Federal Home Loan Bank 5.26 06/29/01 496,650
5,500,000 Federal Home Loan Bank 5.02 02/11/02 5,432,900
1,000,000 Federal Home Loan Bank 4.38 10/23/00 984,264
------------
$ 9,392,352
FEDERAL HOME LOAN MORTGAGE CORPORATION-2.72%
$ 700,000 Federal Home Loan Mortgage Corp 7.22% 05/17/05 $ 713,976
4,000,000 Federal Home Loan Mortgage Corp 5.75 07/15/03 4,028,848
3,000,000 Federal Home Loan Mortgage Corp 5.25 02/16/01 2,986,389
3,400,000 Federal Home Loan Mortgage Corp. 5.13 10/15/08 3,207,720
------------
$ 10,936,933
FEDERAL NATIONAL MORTGAGE ASSOCIATION-6.16%
$ 500,000 Federal National Mortgage Assoc 7.55% 04/22/02 $ 528,420
500,000 Federal National Mortgage Assoc 6.70 08/10/01 503,449
1,000,000 Federal National Mortgage Assoc 6.45 02/14/02 1,007,804
1,500,000 Federal National Mortgage Assoc 6.44 06/21/05 1,550,883
5,000,000 Federal National Mortgage Assoc 6.26 02/25/09 4,958,500
5,700,000 Federal National Mortgage Assoc 6.18 02/19/09 5,582,837
400,000 Federal National Mortgage Assoc 6.16 12/18/07 405,788
1,000,000 Federal National Mortgage Assoc 5.91 02/25/00 1,005,918
1,000,000 Federal National Mortgage Assoc 5.75 06/15/05 1,008,590
2,000,000 Federal National Mortgage Assoc 5.75 02/15/08 1,992,344
4,500,000 Federal National Mortgage Assoc 5.63 02/20/04 4,445,550
1,000,000 Federal National Mortgage Assoc 5.25 01/15/09 957,125
500,000 Federal National Mortgage Assoc 5.13 02/13/04 488,807
</TABLE>
76
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity
Principal Security Name Rate Date Value
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES-(Continued)
$ 1,000,000 Federal National Mortgage Assoc 0.00% 6/1/17 $ 327,084
------------
$ 24,763,099
------------
TOTAL U.S. GOVERNMENT AGENCY SECURITIES $ 45,600,665
(Cost $45,999,129)
U.S. TREASURY SECURITIES-53.34%
U.S. TREASURY BONDS-14.82%
$ 1,100,000 U.S. Treasury Bonds 12.00% 08/15/13 $ 1,604,625
8,550,000 U.S. Treasury Bonds 11.25 02/15/15 13,407,468
1,100,000 U.S. Treasury Bonds 10.38 11/15/12 1,453,032
2,800,000 U.S. Treasury Bonds 9.13 05/15/09 3,250,626
700,000 U.S. Treasury Bonds 9.13 05/15/18 963,594
9,250,000 U.S. Treasury Bonds 8.13 08/15/19 11,744,613
7,100,000 U.S. Treasury Bonds 8.00 11/15/21 8,999,250
2,500,000 U.S. Treasury Bonds 7.88 02/15/21 3,118,750
7,300,000 U.S. Treasury Bonds 7.63 02/15/25 9,077,097
500,000 U.S. Treasury Bonds 7.50 11/15/16 591,719
500,000 U.S. Treasury Bonds 7.25 05/15/16 577,657
1,000,000 U.S. Treasury Bonds 7.12 02/15/23 1,165,625
1,500,000 U.S. Treasury Bonds 6.50 11/15/26 1,645,782
1,000,000 U.S. Treasury Bonds 6.13 11/15/27 1,049,688
900,000 U.S. Treasury Bonds 5.50 08/15/28 872,157
------------
$ 59,521,683
U.S. TREASURY NOTES-38.52%
$ 500,000 U.S. Treasury Notes 5.63% 04/30/00 $ 502,969
1,000,000 U.S. Treasury Notes 5.50 03/31/00 1,004,688
2,300,000 U.S. Treasury Notes 7.88 08/15/01 2,440,875
8,200,000 U.S. Treasury Notes 7.50 11/15/01 8,666,375
1,300,000 U.S. Treasury Notes 7.50 02/15/05 1,438,938
11,050,000 U.S. Treasury Notes 7.25 08/15/04 12,030,687
1,000,000 U.S. Treasury Notes 7.12 02/29/00 1,020,000
9,200,000 U.S. Treasury Notes 7.00 07/15/06 10,071,129
2,250,000 U.S. Treasury Notes 6.50 05/31/01 2,312,579
1,400,000 U.S. Treasury Notes 6.50 05/15/05 1,482,250
2,800,000 U.S. Treasury Notes 6.50 08/15/05 2,965,376
1,400,000 U.S. Treasury Notes 6.50 10/15/06 1,492,750
11,500,000 U.S. Treasury Notes 6.38 03/31/01 11,773,124
4,700,000 U.S. Treasury Notes 6.38 08/15/02 4,860,096
1,800,000 U.S. Treasury Notes 6.25 05/31/00 1,824,750
</TABLE>
77
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity
Principal Security Name Rate Date Value
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES (Continued)
$ 2,800,000 U.S. Treasury Notes 6.25% 10/31/01 $ 2,872,626
1,000,000 U.S. Treasury Notes 6.25 01/31/02 1,027,500
10,800,000 U.S. Treasury Notes 6.25 02/15/03 11,161,129
1,200,000 U.S. Treasury Notes 6.13 12/31/01 1,228,500
5,500,000 U.S. Treasury Notes 6.13 08/15/07 5,756,097
1,000,000 U.S. Treasury Notes 5.88 06/30/00 1,009,375
850,000 U.S. Treasury Notes 5.88 11/30/01 864,610
1,000,000 U.S. Treasury Notes 5.88 02/15/04 1,025,625
1,500,000 U.S. Treasury Notes 5.88 11/15/05 1,539,375
1,600,000 U.S. Treasury Notes 5.75 11/30/02 1,624,501
1,000,000 U.S. Treasury Notes 5.75 04/30/03 1,016,250
14,000,000 U.S. Treasury Notes 5.75 08/15/03 14,236,249
2,100,000 U.S. Treasury Notes 5.63 11/30/00 2,115,750
1,000,000 U.S. Treasury Notes 5.63 02/28/01 1,009,063
800,000 U.S. Treasury Notes 5.63 05/15/08 815,500
4,900,000 U.S. Treasury Notes 5.50 05/31/00 4,922,971
2,100,000 U.S. Treasury Notes 5.50 01/31/03 2,115,095
1,000,000 U.S. Treasury Notes 5.13 08/31/00 999,688
10,800,000 U.S. Treasury Notes 4.75 11/15/08 10,367,999
5,500,000 U.S. Treasury Notes 4.63 12/31/00 5,448,438
10,000,000 U.S. Treasury Notes 4.50 01/31/01 9,884,380
10,000,000 U.S. Treasury Notes 4.00 10/31/00 9,815,630
------------
$154,742,937
------------
TOTAL U.S. TREASURY SECURITIES $214,264,620
(Cost $215,017,877)
SHORT TERM INSTRUMENTS-10.06%
CASH EQUIVALENTS-8.63%
$ 7,161,200 Dreyfus Institutional Money Market
Fund+ $ 7,161,200
18,500,000 Janus International Money Market
Fund+ 18,500,000
9,000,000 Merrimac Cash Fund-Premium Class+ 9,000,000
------------
$ 34,661,200
</TABLE>
78
<PAGE>
MASTER INVESTMENT PORTFOLIO--BOND INDEX MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--BOND INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Principal Security Name Value
<C> <S> <C> <C>
SHORT TERM INSTRUMENTS (Continued)
REPURCHASE AGREEMENTS-1.43%
$ 5,763,108 Morgan Stanley Triparty Repurchase
Agreement dated 2/26/99, due 3/1/99
with a maturity value of $5,765,283
and an effective yield of 4.53%
collateralized by U.S. Treasury Bonds
with a rate of 9.875%, a maturity of
11/15/15 and a market value of
$5,875,689. $ 5,763,108
------------
$ 5,763,108
------------
TOTAL SHORT TERM INSTRUMENTS $ 40,424,308
(Cost $40,424,308)
TOTAL INVESTMENT IN SECURITIES
(Cost $433,394,401) ** (Notes 1 and 3) 107.47% $431,750,346
Other Assets and Liabilities (7.47)% (30,022,460)
------ ------------
TOTAL NET ASSETS 100.00% $401,727,886
====== ============
- ------------------------------------------------------------------------------
</TABLE>
+ Represents collateral received from securities lending transactions. See Note
4.
++ Investment is denominated in U.S. Dollars.
** Cost for federal income tax purposes is $433,401,693 and net unrealized de-
preciation consists of:
<TABLE>
<S> <C>
Gross Unrealized
Appreciation $ 2,320,486
Gross Unrealized
Depreciation $(3,971,833)
-----------
NET UNREALIZED DEPRECIATION $(1,651,347)
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
79
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS
Percent of Net Assets 20.64% 45.03%
ADVERTISING
Percent of Net Assets 0.03% 0.05%
Omnicom Group 211 $ 13,979 1,065 $ 70,556
Outdoor Systems Inc+ 450 12,572 980 27,379
R.R. Donnelley Corp 36 540 252 3,780
Snyder Communications Inc+ 200 6,850 352 12,056
Young & Rubicam Inc+ 100 3,775 264 9,966
------------ ------------
TOTAL ADVERTISING
- VALUE $ 37,716 $ 123,737
- COST $ 24,567 $ 67,966
AEROSPACE & DEFENSE
Percent of Net Assets 0.18% 0.46%
Allied Signal Inc 592 $ 24,494 4,325 $ 178,947
Boeing Co 1,102 39,190 7,737 275,147
Briggs & Stratton Corp 42 2,050 158 7,712
Coltec Industries+ 100 1,800 716 12,888
Cordant Technologies Inc 232 9,034 440 17,133
GenCorp Inc 0 -- 0 --
General Dynamics Corp 116 7,011 959 57,960
Gulfstream Aerospace Corp+ 300 13,425 528 23,628
Lockheed Martin Corp 410 15,452 2,983 112,422
Newport News Shipbuilding 64 1,852 257 7,437
Northrop Grumman Corp 129 8,038 529 32,963
Primex Technologies Inc 47 1,953 49 2,037
Rockwell International Corp 220 9,776 1,564 69,500
Sequa Corp Class A+ 110 5,177 0 --
Stewart & Stevenson Services 364 3,049 334 2,797
Sundstrand Corp 326 22,066 669 45,283
Textron Inc 237 18,486 1,249 97,422
United Technologies Corp 266 32,951 1,456 180,362
------------ ------------
TOTAL AEROSPACE & DEFENSE
- VALUE $ 215,804 $ 1,123,638
- COST $ 199,465 $ 1,013,480
AIRLINES
Percent of Net Assets 0.21% 0.37%
Airborne Freight Corp 300 $ 11,700 704 $ 27,456
Airtran Holdings Inc+ 300 1,013 176 594
AMR Corp+ 244 13,527 1,367 75,783
British Airways PLC ADR (UK) 690 51,060 2,500 185,000
Comair Holdings Inc 300 11,288 704 26,488
Continental Airlines Class
B+ 300 10,388 528 18,282
Delta Air Lines Inc 252 15,325 1,253 76,198
</TABLE>
80
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
66.80% 81.88% 97.60%
0.07% 0.10% 0.12%
2,665 $ 176,556 2,345 $ 155,355 5,656 $ 374,709
1,524 42,577 2,254 62,971 4,615 128,931
550 8,250 489 7,335 1,220 18,300
614 21,030 625 21,406 1,413 48,395
438 16,535 446 16,837 883 33,333
------------ ------------ ------------
$ 264,948 $ 263,904 $ 603,668
$ 126,340 $ 150,248 $ 360,294
0.72% 0.88% 1.02%
10,116 $ 418,549 9,422 $ 389,834 19,237 $ 795,930
18,248 648,945 16,842 598,943 34,605 1,230,639
452 22,063 459 22,405 854 41,686
1,327 23,886 1,161 20,898 2,650 47,700
868 33,798 821 31,968 1,766 68,763
425 8,527 0 -- 0 --
2,212 133,688 2,114 127,765 4,327 261,512
1,152 51,552 982 43,945 2,120 94,869
6,950 261,928 6,436 242,556 13,364 503,655
539 15,597 415 12,009 747 21,616
1,243 77,454 1,169 72,843 2,348 146,309
94 3,907 76 3,159 111 4,613
3,639 161,708 3,323 147,665 6,506 289,109
120 5,648 91 4,283 0 --
434 3,635 326 2,730 746 6,248
1,043 70,598 1,366 92,461 2,818 190,742
2,976 232,128 2,724 212,471 5,638 439,763
3,582 443,720 3,200 396,399 7,305 904,906
------------ ------------ ------------
$ 2,617,331 $ 2,422,334 $ 5,048,060
$ 2,262,531 $ 2,087,551 $ 4,927,763
0.54% 0.69% 0.81%
1,315 $ 51,285 1,250 $ 48,750 2,650 $ 103,349
350 1,181 178 601 619 2,089
3,269 181,225 3,072 170,303 6,249 346,428
4,895 362,230 4,829 357,345 9,499 702,925
1,402 52,750 1,339 50,380 2,826 106,327
1,227 42,485 1,250 43,281 2,561 88,674
2,776 168,816 2,525 153,551 5,105 310,447
</TABLE>
81
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
FDX Corp+ 212 $ 20,246 1,127 $ 107,629
Japan Air Lines Co ADR
(Japan)+ 9,808 51,492 39,440 207,060
KLM Royal Dutch Airlines ADR
(Netherlands) 294 8,221 1,156 32,358
Northwest Airlines Corp
Class A+ 300 7,500 616 15,400
Southwest Airlines Co 349 10,514 2,258 68,022
UAL Corp+ 400 23,900 704 42,064
USAirways Group Inc+ 113 5,353 628 29,752
------------ ------------
TOTAL AIRLINES
- VALUE $ 241,527 $ 912,086
- COST $ 293,739 $ 981,399
APPAREL
Percent of Net Assets 0.03% 0.10%
Fruit of the Loom Inc Class
A+ 97 $ 1,231 530 $ 6,724
Hartmarx Corp+ 81 349 202 871
Land's End Inc+ 0 -- 0 --
Liz Claiborne Inc 81 2,729 555 18,697
Nike Inc Class B 293 15,712 2,236 119,906
Nine West Group Inc+ 200 4,488 264 5,924
OshKosh B'Gosh Class A 52 988 86 1,634
Phillips Van Heusen Corp 0 -- 0 --
Reebok International Ltd+ 37 597 409 6,595
Russell Corp 65 1,268 283 5,519
Stride Rite Corp 63 650 330 3,403
VF Corp 120 5,775 956 46,008
Warnaco Group Inc Class A 300 6,750 892 20,070
------------ ------------
TOTAL APPAREL
- VALUE $ 40,537 $ 235,351
- COST $ 41,442 $ 232,952
AUTO PARTS & EQUIPMENT
Percent of Net Assets 0.09% 0.22%
Bandag Inc 0 $ -- 88 $ 2,789
Bandag Inc Class A 100 2,688 88 2,365
Breed Technologies Inc+ 0 -- 0 --
Cooper Tire & Rubber Co 65 1,284 614 12,127
Dana Corp 219 8,267 1,231 46,470
Deluxe Corp 64 2,168 614 20,799
Eaton Corp 76 5,273 559 38,781
Genuine Parts Co 179 5,359 1,319 39,488
Goodyear Tire & Rubber Co 247 11,424 1,225 56,656
Illinois Tool Works Inc 309 21,244 1,658 113,988
ITT Industries Inc 126 4,922 931 36,367
Lear Corp+ 300 10,594 616 21,753
</TABLE>
82
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,663 $ 254,317 2,474 $ 236,266 5,118 $ 488,768
91,775 481,819 90,874 477,088 180,587 948,081
2,272 63,602 1,997 55,926 4,179 117,000
1,152 28,800 1,786 44,650 3,710 92,749
5,431 163,609 4,887 147,220 11,325 341,165
1,052 62,857 1,071 63,992 3,091 184,686
1,478 70,020 1,275 60,403 2,952 139,850
------------ ------------ ------------
$ 1,984,996 $ 1,909,756 $ 3,972,538
$ 2,082,516 $ 2,043,757 $ 4,167,193
0.15% 0.18% 0.20%
1,277 $ 16,202 1,006 $ 12,764 2,368 $ 30,044
341 1,471 316 1,363 546 2,355
479 14,520 0 -- 0 --
1,179 39,718 1,109 37,359 2,198 74,044
5,174 277,456 4,806 257,721 9,857 528,581
263 5,901 357 8,010 883 19,812
400 7,600 152 2,888 392 7,448
359 2,176 259 1,570 0 --
1,016 16,383 913 14,722 1,854 29,896
647 12,617 616 12,012 1,146 22,347
783 8,075 631 6,507 1,281 13,210
2,209 106,308 2,016 97,020 4,121 198,322
1,502 33,795 1,339 30,128 2,826 63,584
------------ ------------ ------------
$ 542,222 $ 482,064 $ 989,643
$ 519,806 $ 458,591 $ 1,073,745
0.33% 0.40% 0.47%
175 $ 5,545 89 $ 2,820 265 $ 8,397
175 4,703 179 4,811 353 9,487
0 -- 0 -- 89 362
1,401 27,670 1,318 26,030 2,587 51,093
2,960 111,740 2,783 105,058 5,572 210,342
1,491 50,508 1,367 46,307 2,684 90,920
1,349 93,587 1,179 81,793 2,394 166,083
3,169 94,872 2,878 86,160 5,991 179,355
2,958 136,808 2,747 127,049 5,436 251,414
3,997 274,794 3,569 245,368 8,197 563,543
2,161 84,414 2,024 79,063 3,952 154,374
1,227 43,328 1,161 40,998 2,473 87,327
</TABLE>
83
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Mascotech Inc 0 $ -- 264 $ 3,993
Meritor Automotive Inc 270 4,286 1,094 17,367
Modine Manufacturing Co 309 8,652 220 6,160
Navistar International Corp+ 124 5,332 556 23,908
PACCAR Inc 93 3,894 652 27,303
Strattec Security Corp+ 10 315 25 788
Superior Industries
International Inc 322 7,970 229 5,668
The Pep Boys--Manny Moe &
Jack 49 894 469 8,559
TRW Inc 121 5,717 915 43,234
------------ ------------
TOTAL AUTO PARTS & EQUIPMENT
- VALUE $ 110,283 $ 528,563
- COST $ 104,115 $ 477,587
AUTOMOBILES
Percent of Net Assets 0.76% 1.58%
Daimler-ChryslerAG+ 4,689 $ 440,471 18,698 $ 1,756,442
Fiat SpA ADR (UK) 3,998 59,470 14,430 214,646
Ford Motor Co 1,481 87,841 10,027 594,725
General Motors Corp Class A 761 62,830 5,052 417,105
Harley-Davidson Inc 836 48,331 1,860 107,531
Hertz Corp. Class A 100 3,981 264 10,511
Honda Motor Co Ltd ADR
(Japan) 533 40,441 2,285 173,374
Nissan Motor Co Ltd ADR
(Japan)+ 3,635 27,831 14,626 111,981
Toyota Motor Corp ADR
(Japan) 2,178 113,800 8,861 462,986
------------ ------------
TOTAL AUTOMOBILES
- VALUE $ 884,996 $ 3,849,301
- COST $ 630,269 $ 2,665,576
BANK & FINANCE
Percent of Net Assets 2.27% 5.25%
Advanta Corp Class B 163 $ 1,477 143 $ 1,296
Allied Irish Banks PLC ADR
(Ireland) 1,746 180,274 6,202 640,356
American Express Corp 441 47,849 2,964 321,594
Amsouth Bancorp 600 28,200 1,354 63,638
Associated Banc Corp 350 10,872 638 19,818
Associates First Capital
Corp 782 31,769 5,256 213,525
Astoria Financial Corp 430 19,484 581 26,327
Avalonbay Communities Inc 0 -- 792 24,998
Banco Bilbao Vizcaya ADR
(Spain) 4,210 62,098 15,108 222,843
Banco Central
Hispanoamericano SA ADR
(Spain) 5,788 69,094 20,917 249,697
Banco Santander SA ADR
(Spain) 2,005 39,466 7,324 144,191
Bancwest Corp 200 7,838 264 10,346
Bank of New York Inc 788 27,531 5,789 202,253
Bank One Corp 1,285 69,074 8,973 482,298
</TABLE>
84
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0 $ -- 357 $ 5,400 707 $ 10,693
1,868 29,655 1,814 28,797 3,630 57,625
408 11,424 299 8,372 442 12,376
1,197 51,471 1,154 49,622 2,254 96,921
1,433 60,007 1,318 55,191 2,603 109,000
63 1,985 44 1,386 0 --
398 9,851 296 7,326 450 11,138
1,147 20,933 999 18,232 2,115 38,599
2,215 104,659 2,025 95,681 4,133 195,283
------------ ------------ ------------
$ 1,217,954 $ 1,115,464 $ 2,304,332
$ 1,086,008 $ 969,466 $ 2,202,898
2.25% 2.85% 2.95%
37,849 $ 3,555,440 36,455 $ 3,424,491 59,189 $ 5,560,066
28,800 428,400 28,177 419,132 56,051 833,758
22,992 1,363,713 20,758 1,231,208 41,520 2,462,654
11,767 971,513 10,899 899,848 22,415 1,850,637
2,921 168,870 2,757 159,388 5,900 341,093
526 20,941 536 21,340 1,060 42,201
5,277 400,392 5,342 405,323 10,544 800,025
34,054 260,728 33,799 258,774 67,357 515,704
20,581 1,075,357 20,469 1,069,504 40,544 2,118,423
------------ ------------ ------------
$ 8,245,354 $ 7,889,008 $ 14,524,561
$ 5,816,397 $ 5,736,762 $ 11,031,546
7.66% 9.51% 11.31%
238 $ 2,157 194 $ 1,758 336 $ 3,045
12,323 1,272,350 12,015 1,240,548 23,911 2,468,810
7,247 786,300 6,608 716,967 15,056 1,633,575
2,160 101,520 1,987 93,389 5,940 279,179
986 30,628 937 29,106 3,180 98,778
12,417 504,441 11,564 469,786 23,711 963,258
881 39,920 1,344 60,900 2,747 124,472
1,590 50,184 1,429 45,103 88 2,778
30,095 443,901 29,503 435,168 58,781 867,019
41,541 495,896 40,636 485,091 80,938 966,196
14,690 289,209 14,363 282,771 28,646 563,967
526 20,613 446 17,478 1,148 44,987
13,500 471,656 12,471 435,705 25,651 896,181
21,066 1,132,298 19,367 1,040,975 40,087 2,154,675
</TABLE>
85
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (Continued)
BankAmerica Corp 1,883 $ 122,982 13,386 $ 874,272
BankBoston Corp 322 13,021 2,229 90,135
Bankers Trust Corp 84 7,308 729 63,423
BB&T Corp 310 11,741 2,189 82,908
Bear Stearns Co Inc 189 8,092 950 40,672
Campstead Mortgage Corp+ 0 -- 352 1,738
Capital One Financial Corp 0 -- 475 60,622
CCB Financial Corp 200 10,388 352 18,282
Centura Banks Inc 200 12,800 352 22,528
Charter One Financial Inc 742 21,379 1,598 46,042
Chase Manhattan 1,078 85,835 5,573 443,749
Citigroup Inc 2,505 147,168 17,540 1,030,474
City National Corp 200 6,450 528 17,028
CNB Bancshares Inc 0 -- 352 14,146
Colonial BancGroup Inc 0 -- 188 2,327
Comdisco Inc 548 6,576 1,362 16,344
Comerica Inc 194 12,853 1,172 77,645
Commerce Bancshares Inc 352 14,332 679 27,659
Commercial Federal Corp 0 -- 804 17,537
Compass Bancshares Inc 400 14,650 792 29,007
ContiFinancial Corp+ 0 -- 88 308
Countrywide Credit
Industries Inc 94 3,560 895 33,898
Credit Acceptance Corp+ 200 1,200 176 1,056
Crescent Operating Inc+ 0 -- 70 247
Crescent Real Estate Co 600 12,525 1,332 27,806
Cullen/Frost Bankers Inc 0 -- 352 16,654
Dime Bancorp Inc 700 17,325 1,420 35,145
Donaldson Lufkin & Jenrette
Inc 200 11,400 352 20,064
Duke Realty Investments 300 6,544 1,156 25,215
Edwards A G & Sons Inc 482 15,695 1,270 41,354
Equifax Inc 161 6,078 900 33,975
Federal Home Loan Mortgage
Corp 703 41,389 4,344 255,753
Federal National Mortgage
Assoc 1,121 78,470 7,954 556,779
Fifth Third Bancorp 349 23,056 1,768 116,799
Finova Group Inc 300 15,244 616 31,301
First American Corp 600 24,338 1,304 52,894
First Security Corp 1,041 19,324 1,820 33,784
First Tennessee National
Corp 716 27,253 1,578 60,063
First Union Corp 1,011 53,899 7,443 396,806
First Virginia Banks Inc 338 16,118 590 28,136
Firstar Corp 1,208 101,169 2,376 198,990
Firstmerit Corp 300 7,331 804 19,648
Firstplus Financial Group+ 200 275 440 605
Fleet Financial Group Inc 602 25,848 4,312 185,147
Franklin Resources Inc 328 10,435 1,650 52,491
</TABLE>
86
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
31,314 $ 2,045,196 28,827 $ 1,882,762 59,532 $ 3,888,183
5,338 215,855 4,933 199,477 10,119 409,186
1,769 153,903 1,612 140,243 3,275 284,924
5,164 195,586 4,787 181,307 9,789 370,757
2,172 92,989 2,051 87,809 3,993 170,949
701 3,461 625 3,086 1,325 6,542
140 17,868 905 115,501 370 47,221
701 36,408 714 37,083 1,678 87,150
438 28,032 625 40,000 1,325 84,799
2,545 73,322 2,338 67,364 6,919 199,353
13,385 1,065,781 12,130 965,850 27,482 2,188,253
41,178 2,419,208 37,434 2,199,247 78,338 4,602,357
964 31,089 982 31,670 2,031 65,499
0 -- 0 -- 0 --
100 1,238 0 -- 88 1,089
3,100 37,200 2,953 35,436 6,029 72,347
2,817 186,626 2,610 172,912 5,334 353,377
1,070 43,607 1,054 42,959 3,265 133,060
100 2,181 0 -- 88 1,920
1,371 50,213 1,741 63,764 3,577 131,007
175 613 178 623 530 1,855
2,067 78,288 1,861 70,485 3,684 139,531
0 -- 178 1,068 442 2,652
0 -- 0 -- 177 625
2,028 42,335 2,768 57,782 5,741 119,842
0 -- 0 -- 0 --
2,291 56,702 3,036 75,141 6,183 153,028
614 34,998 625 35,625 1,325 75,524
2,028 44,236 1,875 40,898 3,886 84,762
2,313 75,317 2,201 71,670 4,449 144,870
2,399 90,562 2,106 79,502 4,966 187,466
10,817 636,851 9,733 573,029 22,576 1,329,161
18,681 1,307,670 17,273 1,209,109 35,481 2,483,669
4,242 280,237 3,834 253,283 8,710 575,403
964 48,983 1,339 68,038 2,826 143,595
2,133 86,520 1,981 80,354 5,790 234,856
2,898 53,799 2,704 50,193 9,352 173,591
2,502 95,232 2,411 91,769 6,942 264,229
17,453 930,463 16,213 864,352 33,232 1,771,680
952 45,398 1,376 65,618 2,841 135,479
3,899 326,541 3,727 312,135 8,518 713,382
1,853 45,283 1,696 41,446 3,533 86,337
788 1,084 714 982 1,590 2,186
10,271 441,011 9,500 407,905 19,398 832,901
3,163 100,623 3,609 114,811 6,620 210,598
</TABLE>
87
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
GATX Corp 346 $ 11,959 651 $ 22,500
Golden State Bancorp+ 200 3,563 528 9,405
Golden West Financial 54 5,073 470 44,151
Greenpoint Financial Corp 500 15,344 980 30,074
GTECH Holdings Corp+ 200 4,525 440 9,955
Hibernia Corp Class A 900 14,569 1,772 28,684
Highwood Properties Inc 300 7,181 892 21,352
Household International Inc 549 22,303 3,761 152,791
Huntington Bancshares Inc 199 6,318 1,649 52,356
INMC Mortgage Holdings Inc
REIT 200 2,125 892 9,478
John Nuveen & Co Inc Class A 0 -- 88 3,476
Keycorp 454 14,642 3,353 108,134
Keystone Financial Inc 300 10,838 704 25,432
Legg Mason Inc 400 11,325 704 19,932
Lehman Brothers Holdings 180 9,540 950 50,350
M & T Bank Corp 0 -- 88 41,866
MBNA Corp 606 14,696 5,040 122,220
Medaphis Corp+ 800 2,600 792 2,574
Mellon Bank Corp 247 16,703 2,013 136,129
Mercantile Bancorp 134 6,114 1,095 49,959
Mercantile Bankshares 454 16,543 823 29,988
Merrill Lynch & Co Inc 340 26,095 2,684 205,997
Metris Companies Inc 160 6,880 112 4,816
MGIC Investment Corp 95 3,236 934 31,814
Morgan (J P) & Co Inc 216 24,071 1,359 151,444
Morgan Stanley Dean Witter 654 59,187 4,466 404,172
National Australia Bank Ltd
ADR (Australia) 1,103 91,410 4,031 334,069
National City Corp 376 26,273 2,211 154,494
National Commerce Bancorp 400 8,300 1,244 25,813
Northern Trust Corp 124 11,083 870 77,756
Northfork Bancorp 800 17,600 1,596 35,112
Oakwood Homes Corp 200 3,225 616 9,933
Ocwen Financial Corp+ 0 -- 364 2,912
Old Kent Financial Corp 522 22,903 1,319 57,871
Old National Bancorp 362 16,788 213 9,878
Pacific Century Financial
Corp 648 14,216 998 21,894
Paine Webber Group Inc 600 22,425 1,332 49,784
Peoples Bank Bridgeport 100 2,794 352 9,856
Peoples Heritage Financial
Group Inc 0 -- 1,244 21,148
PNC Bank Corp 329 17,129 2,345 122,087
Price (T Rowe) & Associates 500 15,406 1,244 38,331
Provident Financial Group 100 3,881 264 10,296
Regions Financial Corp 170 6,460 1,587 60,306
</TABLE>
88
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,231 $ 42,546 1,191 $ 41,164 2,579 $ 89,136
1,052 18,739 1,071 19,077 2,208 39,330
1,077 101,171 987 92,716 1,961 184,210
1,502 46,093 1,429 43,852 4,593 140,947
877 19,842 804 18,191 1,766 39,956
2,905 47,025 3,928 63,585 7,949 128,673
1,590 38,061 1,518 36,337 3,091 73,990
8,863 360,059 8,192 332,799 16,921 687,415
3,773 119,793 3,440 109,220 7,043 223,614
1,678 17,829 1,518 16,129 3,091 32,842
0 -- 0 -- 0 --
7,934 255,871 7,317 235,972 15,109 487,264
1,315 47,504 1,250 45,156 2,650 95,730
1,227 34,739 1,250 35,391 2,561 72,507
2,155 114,215 1,985 105,205 4,025 213,324
88 41,866 89 42,342 265 126,073
12,243 296,881 10,922 264,858 25,297 613,439
964 3,133 1,071 3,481 1,767 5,743
4,726 319,596 4,352 294,303 8,891 601,253
2,703 123,324 2,576 117,530 5,280 240,899
1,870 68,138 1,752 63,839 3,639 132,595
6,278 481,836 5,809 445,840 11,942 916,548
227 9,605 145 6,235 139 5,881
2,051 69,862 1,893 64,480 3,809 129,743
3,162 352,365 3,005 334,869 6,082 677,762
10,591 958,486 9,808 887,623 19,972 1,807,465
8,102 671,453 7,797 646,175 15,645 1,296,578
5,264 367,822 4,776 333,722 10,759 751,784
2,291 47,538 2,143 44,467 4,416 91,631
2,016 180,180 1,861 166,326 3,750 335,155
2,554 56,188 3,393 74,646 7,022 154,483
1,139 18,366 1,071 17,270 2,208 35,604
626 5,008 536 4,288 972 7,776
2,035 89,286 1,946 85,381 5,314 233,151
426 19,756 325 15,072 751 34,828
1,602 35,144 1,387 30,427 4,125 90,491
2,072 77,441 1,875 70,078 5,520 206,309
701 19,628 625 17,500 1,325 37,100
100 1,700 0 -- 88 1,496
5,467 284,626 5,006 260,624 10,340 538,325
1,941 59,807 2,411 74,289 5,034 155,109
526 20,514 446 17,394 972 37,908
3,810 144,780 3,715 141,169 7,373 280,173
</TABLE>
89
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Republic New York Corp 94 $ 4,259 832 $ 37,700
Ryder System Inc 129 3,483 562 15,174
Sabre Group Holding Inc+ 0 -- 176 6,908
Schwab (Charles) Corp 247 18,417 2,745 204,674
SLM Holding Corp 135 5,788 1,025 43,947
Sovereign Bancorp Inc 800 9,800 1,948 23,863
Spieker Properties Inc 300 10,725 704 25,168
State Street Boston Corp 205 15,721 1,047 80,292
Summit Bancorp 184 7,107 1,330 51,371
SunTrust Banks Inc 748 50,817 2,868 194,845
Synovus Financial Corp 197 4,691 1,800 42,863
TCF Financial Corp 500 12,031 1,156 27,816
The Fund American Companies 0 -- 0 --
Trustmark Corp 300 6,356 716 15,170
U.S. Bancorp 681 22,005 4,698 151,804
Union Planters Corp 173 7,817 1,032 46,634
UnionBanCal Corp 300 9,431 264 8,300
United Asset Management Corp 400 9,075 980 22,234
Valley National Bancorp 300 7,688 704 18,040
Wachovia Corp 282 23,988 1,604 136,440
Waddell & Reed Financial
Class A 9 170 68 1,284
Waddell & Reed Financial
Class B 39 724 273 5,068
Washington Federal Inc 343 7,722 926 20,837
Washington Mutual Inc 604 24,160 4,553 182,120
Wells Fargo & Co 2,337 85,884 12,988 477,308
Wesco Financial Corp 0 -- 0 --
Westamerica Bancorp 200 6,700 616 20,636
Westpac Banking Corp ADR
(Australia) 1,636 54,602 5,958 198,848
Wilmington Trust Corp 192 10,884 449 25,453
Zions Bancorp 400 25,600 880 56,320
------------ ------------
TOTAL BANK & FINANCE
- VALUE $ 2,650,045 $ 12,776,342
- COST $ 1,952,112 $ 8,564,180
BASIC INDUSTRIES
Percent of Net Assets 0.26% 0.57%
Alcoa Inc 488 $ 19,764 2,890 $ 117,045
ASARCO Inc 25 353 307 4,336
Avery-Dennison Corp 70 3,758 816 43,809
Baker Hughes Inc 299 5,382 2,430 43,740
Bemis Co 42 1,431 428 14,579
Boise Cascade Corp 59 1,833 473 14,693
Boise Cascade Office
Products+ 0 -- 88 1,056
Bowater Inc 295 12,427 713 30,035
</TABLE>
90
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,950 $ 88,359 1,794 $ 81,291 3,613 $ 163,713
1,342 36,234 1,293 34,911 2,535 68,444
351 13,777 268 10,519 442 17,349
6,480 483,165 5,727 427,019 13,368 996,751
2,670 114,476 2,320 99,470 5,530 237,098
3,519 43,108 3,393 41,564 6,978 85,480
1,315 47,011 1,339 47,869 2,738 97,883
2,567 196,857 2,330 178,681 5,301 406,519
3,147 121,553 2,946 113,789 5,952 229,895
5,719 388,535 5,447 370,055 11,362 771,905
4,456 106,109 3,762 89,583 9,053 215,574
2,116 50,916 2,411 58,015 4,858 116,895
0 -- 0 -- 100 13,150
1,765 37,396 1,696 35,934 3,445 72,990
11,649 376,408 10,470 338,311 24,228 782,866
2,298 103,841 2,171 98,109 7,397 334,251
789 24,804 804 25,276 1,590 49,986
1,765 40,043 1,696 38,478 3,445 78,157
1,402 35,926 1,339 34,312 2,738 70,160
3,675 312,605 3,518 299,249 7,093 603,347
138 2,605 122 2,303 258 4,870
608 11,286 572 10,618 1,112 20,642
1,573 35,390 1,469 33,041 3,048 68,581
10,758 430,320 9,862 394,479 20,344 813,759
29,375 1,079,531 26,958 990,706 56,111 2,062,078
0 -- 0 -- 88 30,487
1,052 35,242 1,071 35,879 2,208 73,967
11,939 398,464 11,613 387,583 23,232 775,367
919 52,096 896 50,792 1,833 103,907
1,502 96,128 1,339 85,696 3,621 231,743
------------ ------------ ------------
$ 28,013,583 $ 26,319,587 $ 55,684,169
$ 17,839,628 $ 16,711,537 $ 41,226,588
0.86% 1.06% 1.26%
6,702 $ 271,431 6,516 $ 263,897 13,384 $ 542,051
800 11,300 636 8,984 1,410 19,916
1,832 98,356 1,674 89,873 4,008 215,179
5,788 104,184 5,346 96,228 15,401 277,217
960 32,700 882 30,043 1,789 60,937
1,022 31,746 986 30,628 1,883 58,490
701 8,412 179 2,148 353 4,236
1,360 57,290 1,346 56,700 2,804 118,118
</TABLE>
91
<PAGE>
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FEBRUARY 28, 1999
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) 720 $ 10,845 2,578 $ 38,831
Champion International Corp 122 4,514 761 28,157
Chesapeake Corp 256 8,064 176 5,544
Consolidated Papers Inc 372 8,277 857 19,068
Crown Vantage Inc+ 21 37 42 74
Cyprus Amax Minerals 70 788 755 8,494
Deltic Timber Corp 140 3,343 145 3,462
Dover Corp 185 6,290 1,553 52,802
Fort James Corp 151 4,511 1,451 43,349
Georgia-Pacific Corp 127 9,303 748 54,791
Glatfelter (P H) Co 486 5,194 246 2,629
Harnischfeger Industries Inc 50 384 385 2,960
Homestake Mining Co 152 1,397 1,652 15,178
Ikon Office Solutions Inc 124 1,752 923 13,037
Inco Ltd 166 2,096 1,159 14,632
Longview Fibre Co 554 6,267 475 5,373
Louisiana-Pacific Corp 63 1,158 892 16,391
LTB Corp 900 4,950 1,408 7,744
Mail-Well Inc+ 0 -- 100 1,413
Mark IV Industries Inc 247 3,720 556 8,375
Mead Corp 102 3,105 835 25,415
Minnesota Mining &
Manufacturing Co 505 37,402 2,655 196,636
Mitsubishi Corp ADR (Japan)+ 3,294 35,536 18,425 198,769
NACCO Industries Inc Class A 18 1,584 48 4,224
Newmont Mining Corp 187 3,217 1,421 24,512
Potlatch Corp 2 69 230 7,978
Rayonier Inc 156 6,386 396 16,211
Sealed Air Corp+ 177 8,983 605 30,704
Smith International Inc+ 214 5,203 616 14,977
St Joe Paper Corp 300 6,469 352 7,590
U.S. Industries Inc 527 8,564 1,446 23,498
Union Camp Corp 65 4,347 519 34,708
Unisource Worldwide Inc 94 658 585 4,095
Varco International Inc+ 584 4,526 440 3,410
Varian Associates Inc 177 5,664 431 13,792
Watts Industries Inc Class A 308 4,293 0 --
Wausau-Mosinee Paper Corp 392 6,223 278 4,413
Westvaco Corp 56 1,253 852 19,064
Weyerhauser Co 269 14,997 1,609 89,702
Whitman Corp 464 8,816 1,224 23,256
Willamette Industries Inc 109 3,972 870 31,701
------------ ------------
TOTAL BASIC INDUSTRIES
- VALUE $ 299,105 $ 1,386,252
- COST $ 347,849 $ 1,604,193
</TABLE>
92
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
5,201 $ 78,340 5,012 $ 75,493 10,187 $ 153,441
1,702 62,974 1,628 60,236 3,214 118,917
316 9,954 237 7,466 574 18,081
1,538 34,220 1,411 31,395 2,862 63,679
91 159 72 126 117 205
1,676 18,855 1,580 17,775 3,129 35,201
269 6,422 178 4,250 295 7,043
3,672 124,848 3,148 107,032 7,544 256,495
3,594 107,371 3,149 94,076 7,203 215,189
1,654 121,156 1,531 112,146 3,092 226,488
674 7,203 437 4,670 680 7,268
833 6,404 804 6,181 1,480 11,378
3,856 35,427 3,526 32,395 7,031 64,596
2,571 36,315 2,255 31,852 4,411 62,304
2,905 36,676 2,785 35,161 5,363 67,707
780 8,824 513 5,803 1,175 13,292
1,931 35,482 1,864 34,251 3,631 66,719
2,630 14,465 2,411 13,261 5,653 31,092
100 1,413 0 -- 88 1,243
1,026 15,454 948 14,279 2,098 31,601
1,876 57,101 1,730 52,657 3,422 104,156
6,337 469,334 5,799 429,487 13,036 965,478
42,918 462,999 42,450 457,950 84,290 909,320
147 12,936 149 13,112 279 24,552
3,013 51,966 2,833 48,869 6,306 108,778
530 18,384 522 18,107 895 31,045
756 30,949 737 30,171 1,518 62,142
1,432 72,674 1,249 63,387 2,918 148,088
1,137 27,643 1,095 26,622 2,296 55,821
701 15,115 714 15,396 1,502 32,387
2,539 41,259 2,436 39,585 4,979 80,908
1,249 83,527 1,146 76,639 2,276 152,207
1,029 7,203 975 6,825 2,362 16,534
919 7,122 846 6,557 1,678 13,005
820 26,240 795 25,440 1,559 49,888
407 5,673 298 4,153 0 --
501 7,953 363 5,763 328 5,207
1,968 44,034 1,747 39,089 3,384 75,716
3,779 210,679 3,366 187,654 6,657 371,127
2,687 51,053 2,584 49,096 5,357 101,782
2,022 73,677 1,843 67,154 3,696 134,672
------------ ------------ ------------
$ 3,154,902 $ 2,930,062 $ 6,190,896
$ 3,582,192 $ 3,381,989 $ 7,374,966
</TABLE>
93
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
BEVERAGES
Percent of Net Assets 0.76% 1.65%
Anheuser-Busch Inc 522 $ 40,031 3,100 $ 237,731
Cadbury Schweppes PLC ADR
(UK) 1,417 88,384 5,062 315,742
Coca-Cola Co 2,417 154,536 16,234 1,037,960
Coca-Cola Enterprises Co 1,036 32,116 2,655 82,305
Coors (Adolph) Co Class B 59 3,514 318 18,941
Diageo PLC ADR (UK) 3,787 171,361 13,795 624,223
Hanson PLC ADR (UK) 2,399 97,458 8,556 347,588
Kirin Brewery Co ADR (Japan) 1,597 184,253 6,282 724,785
Louis Vuitton Moet Hennessey
ADR (France) 947 40,248 3,521 149,643
Pepsico Inc 1,487 55,948 9,712 365,414
Seagrams Co Ltd 344 15,953 2,690 124,749
------------ ------------
TOTAL BEVERAGES
- VALUE $ 883,802 $ 4,029,081
- COST $ 686,279 $ 3,016,007
BIOTECHNOLOGY
Percent of Net Assets 0.06% 0.09%
Agouron Pharmaceuticals Inc+ 0 $ -- 264 $ 15,065
Beckman Coulter Inc 194 9,373 396 19,132
Biogen Inc+ 418 40,180 757 72,767
Chiron Corp+ 396 8,341 1,237 26,054
Genzyme Corp--General
Division+ 326 14,670 898 40,410
Genzyme Corp--Tissue Repair+ 44 116 10 26
Genzyme Corp Molecular
Oncology+ 35 131 96 366
Medimmune Inc+ 0 -- 528 29,040
Quest Diagnostics Inc+ 46 983 211 4,510
------------ ------------
TOTAL BIOTECHNOLOGY
- VALUE $ 73,794 $ 207,370
- COST $ 36,433 $ 135,571
BROADCASTING
Percent of Net Assets 0.23% 0.54%
American Tower Corp+ 0 $ -- 1,156 $ 30,995
British Sky Broadcasting ADR
(UK) 747 41,318 2,685 148,514
Cablevision Systems Corp+ 0 -- 880 57,200
Chancellor Media Corp Class
A+ 600 26,250 1,420 62,125
Clear Channel Communications
Inc+ 228 13,680 1,934 116,040
Fox Entertainment Group Inc+ 0 -- 100 2,600
Hearst-Argyle Television+ 300 7,913 704 18,568
Heftel Broadcasting Corp+ 100 4,100 352 14,520
Infinity Broadasting Corp+ 0 -- 100 2,375
Jacor Communications Inc+ 100 6,975 176 12,276
</TABLE>
94
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2.47% 3.09% 3.69%
7,688 $ 589,573 6,941 $ 532,287 15,972 $ 1,224,852
10,011 624,436 9,878 616,139 19,634 1,224,670
39,432 2,521,184 35,482 2,268,629 81,805 5,230,406
6,219 192,789 5,699 176,668 13,050 404,549
633 37,703 651 38,775 1,199 71,414
27,602 1,248,990 26,926 1,218,401 53,728 2,431,191
17,127 695,784 16,792 682,169 33,366 1,355,493
14,466 1,669,015 14,380 1,659,092 28,452 3,282,649
7,032 298,860 7,033 298,902 13,627 579,147
23,509 884,526 21,085 793,322 48,714 1,832,863
6,201 287,571 5,770 267,583 11,899 551,815
------------ ------------ ------------
$ 9,050,431 $ 8,551,967 $ 18,189,049
$ 6,722,275 $ 6,390,310 $ 14,514,139
0.08% 0.09% 0.13%
438 $ 24,993 446 $ 25,450 972 $ 55,464
745 35,993 719 34,737 1,484 71,695
1,211 116,407 1,180 113,427 3,436 330,285
2,225 46,864 2,143 45,137 4,374 92,126
831 37,395 664 29,880 1,501 67,544
62 163 46 121 48 126
79 301 71 271 152 580
0 -- 0 -- 0 --
451 9,640 347 7,417 729 15,582
------------ ------------ ------------
$ 271,756 $ 256,440 $ 633,402
$ 187,219 $ 165,498 $ 398,628
0.79% 0.97% 1.10%
2,028 $ 54,376 1,875 $ 50,273 88 $ 2,360
5,277 291,884 5,158 285,301 10,213 564,906
1,590 103,350 1,786 116,090 88 5,720
2,204 96,425 2,054 89,863 6,006 262,762
4,476 268,560 4,168 250,079 8,528 511,679
100 2,600 0 -- 177 4,602
1,227 32,362 1,250 32,969 2,473 65,224
614 25,328 625 25,781 1,237 51,026
100 2,375 0 -- 0 --
263 18,344 268 18,693 618 43,106
</TABLE>
95
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Kingworld Productions+ 94 $ 2,485 555 $ 14,673
MediaOne Group Inc+ 680 37,060 4,685 255,333
TCA Cable TV Inc 532 23,475 616 27,181
TCI Satellite Entertainment
Class A+ 107 87 477 388
Tele-Communications Inc
Class A+ 536 33,668 3,531 221,791
Tribune Co 121 8,024 922 61,140
Univision Communications
Inc+ 100 4,075 264 10,758
USA Networks Inc+ 622 24,725 729 28,978
Viacom Inc Class B+ 387 34,201 2,705 239,054
------------ ------------
TOTAL BROADCASTING
- VALUE $ 268,036 $ 1,324,509
- COST $ 153,343 $ 761,042
BUILDING MATERIALS &
SERVICES
Percent of Net Assets 0.17% 0.23%
AMBAC Inc 400 $ 22,400 616 $ 34,496
American Standard Co Inc+ 200 6,713 716 24,031
Cooper Industries Inc 123 5,381 934 40,863
Corning Inc 185 9,898 1,438 76,933
Cytec Industries Inc+ 200 5,363 440 11,798
Dal Tile International Inc+ 0 -- 0 --
Danaher Corp 500 24,125 677 32,665
Diebold Inc 366 10,683 1,011 29,509
Fastenal Co 200 7,600 352 13,376
Georgia-Pacific (Timber
Group) 437 8,904 1,326 27,017
Kennametal Inc 300 6,244 264 5,495
Lafarge Corp 300 9,563 440 14,025
Lawson Products Inc 0 -- 0 --
Martin Marietta Inc 100 5,131 88 4,516
Owens Corning Fiberglass
Corp 18 573 391 12,439
Owens Illinois Inc+ 136 3,256 1,148 27,480
PPG Industries Inc 185 9,632 1,339 69,712
Snap-On Inc 38 1,074 447 12,628
Southdown Inc 275 12,977 440 20,763
Stanley Works 92 2,237 631 15,341
USG Corp 200 10,025 440 22,055
Valspar Corp 200 6,500 528 17,160
Vulcan Materials Co 200 26,950 352 47,432
------------ ------------
TOTAL BUILDING MATERIALS &
SERVICES
- VALUE $ 195,229 $ 559,734
- COST $ 135,815 $ 521,785
</TABLE>
96
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,373 $ 36,299 1,258 $ 33,258 2,404 $ 63,555
10,984 598,628 10,182 554,918 20,835 1,135,507
650 28,681 493 21,754 88 3,883
1,008 819 788 640 1,649 1,340
8,554 537,298 7,719 484,849 17,702 1,111,906
2,254 149,468 2,080 137,929 4,124 273,472
438 17,849 446 18,175 883 35,982
1,139 45,275 1,111 44,162 5,045 200,538
6,427 567,986 5,944 525,300 12,300 1,087,012
------------ ------------ ------------
$ 2,877,907 $ 2,690,034 $ 5,424,580
$ 1,584,785 $ 1,463,061 $ 2,986,028
0.31% 0.39% 0.52%
1,052 $ 58,912 1,071 $ 59,976 3,180 $ 178,079
1,327 44,537 1,161 38,966 2,473 82,999
2,093 91,569 1,930 84,437 4,047 177,055
3,658 195,703 3,313 177,245 7,756 414,945
877 23,515 804 21,557 1,766 47,351
0 -- 0 -- 177 1,626
1,263 60,940 1,265 61,036 4,381 211,382
1,335 38,965 1,778 51,895 3,582 104,549
701 26,638 714 27,132 1,413 53,693
2,457 50,061 1,639 33,395 4,678 95,313
360 7,493 268 5,578 530 11,031
789 25,149 714 22,759 1,590 50,681
173 3,644 0 -- 0 --
175 8,980 179 9,185 442 22,680
912 29,013 751 23,891 2,005 63,783
2,741 65,613 2,531 60,586 5,180 123,995
3,138 163,372 2,971 154,677 6,061 315,550
1,041 29,408 982 27,742 1,973 55,736
660 31,144 962 45,394 2,031 95,837
1,444 35,107 1,292 31,412 3,065 74,517
877 43,960 804 40,301 1,766 88,520
964 31,330 982 31,915 2,031 66,007
526 70,879 536 72,226 1,590 214,252
------------ ------------ ------------
$ 1,135,932 $ 1,081,305 $ 2,549,581
$ 1,067,342 $ 1,027,932 $ 2,514,270
</TABLE>
97
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
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 0.16% 0.28%
APAC Teleservices Inc+ 100 $ 306 176 $ 539
Apollo Group Inc+ 200 6,013 572 17,196
Cendant Corp+ 952 15,768 6,572 108,849
Concord EFS Inc+ 350 11,178 1,244 39,730
Convergys Corp+ 0 -- 100 1,731
Delta & Pine Land Co 0 -- 440 14,245
Dun & Bradstreet Corp 75 2,569 1,060 36,305
Ecolab Inc 84 3,350 746 29,747
Fulton Financial Corp 0 -- 716 15,842
IT Group Inc+ 0 -- 0 --
Kelly Services Inc Class A 106 2,703 194 4,947
Manpower Inc 300 7,181 1,156 27,672
Modis Professional Services+ 500 6,844 1,420 19,436
Neilsen Media Research+ 60 1,178 391 7,673
Nielson (A C) Corp+ 73 1,898 399 10,374
Ogden Corp 301 7,356 638 15,591
Olsten Corp 291 1,801 462 2,859
Paychex Inc 632 26,781 1,015 43,011
Paymentech Inc+ 0 -- 88 1,683
Quintiles Transnational
Corp+ 300 12,938 704 30,360
Reuters Group PLC ADR (UK) 684 56,772 2,513 208,579
Robert Half International
Inc+ 300 10,800 1,024 36,864
Rollins Inc 388 6,232 185 2,972
Security Dynamics Technology
Inc+ 200 3,700 528 9,768
Teletech Holdings Inc+ 0 -- 88 616
------------ ------------
TOTAL BUSINESS SERVICES
- VALUE $ 185,368 $ 686,589
- COST $ 177,775 $ 675,055
CHEMICALS
Percent of Net Assets 0.48% 0.93%
Air Products & Chemicals Inc 180 $ 5,783 1,751 $ 56,251
Airgas Inc+ 400 3,600 704 6,336
Albemarle Corp 313 7,395 229 5,410
Arch Chemicals Inc+ 135 2,565 334 6,346
Autoliv Inc 544 20,672 1,243 47,234
Cabot Corp 310 7,808 927 23,349
ChemFirst Inc 35 665 74 1,406
Clorox Co 233 27,567 805 95,242
Crompton & Knowles Corp 350 6,475 1,103 20,406
Dow Chemical Co 301 29,611 1,744 171,566
Du Pont (E I) De Nemours 1,400 71,838 7,508 385,254
Eastman Chemical Co 114 5,379 611 28,832
</TABLE>
98
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.38% 0.47% 0.56%
351 $ 1,075 357 $ 1,093 530 $ 1,623
964 28,980 1,027 30,874 2,031 61,056
15,512 256,918 14,382 238,201 29,398 486,903
2,248 71,796 2,098 67,005 4,416 141,035
100 1,731 0 -- 0 --
0 -- 0 -- 88 2,849
2,656 90,968 2,363 80,933 5,641 193,203
2,088 83,259 1,883 75,085 4,538 180,952
100 2,213 0 -- 88 1,947
120 1,575 0 -- 0 --
341 8,696 374 9,537 782 19,941
2,116 50,652 1,964 47,013 4,063 97,257
2,554 34,958 2,500 34,219 4,946 67,697
897 17,610 793 15,569 1,872 36,738
805 20,930 631 16,406 1,440 37,440
1,213 29,643 1,166 28,494 2,424 59,236
979 6,058 882 5,457 1,957 12,109
2,626 111,277 2,280 96,615 5,498 232,977
0 -- 179 3,423 353 6,751
1,315 56,709 1,339 57,744 2,738 118,075
5,104 423,632 4,956 411,347 9,781 811,822
1,853 66,708 1,741 62,676 3,621 130,355
565 9,075 357 5,734 596 9,573
964 17,834 893 16,521 1,855 34,318
0 -- 0 -- 265 1,855
------------ ------------ ------------
$ 1,392,297 $ 1,303,946 $ 2,745,712
$ 1,313,634 $ 1,364,068 $ 2,915,296
1.37% 1.68% 1.99%
4,150 $ 133,319 3,782 $ 121,497 7,831 $ 251,570
1,402 12,618 1,250 11,250 2,826 25,434
536 12,663 386 9,119 871 20,577
604 11,476 606 11,514 1,219 23,161
2,001 76,038 1,815 68,970 5,397 205,085
1,916 48,259 1,814 45,690 3,701 93,218
275 5,225 200 3,800 307 5,833
1,942 229,763 1,736 205,390 3,866 457,395
1,928 35,668 1,848 34,188 3,736 69,115
4,081 401,468 3,703 364,282 7,682 755,716
17,871 917,006 16,153 828,850 36,475 1,871,622
1,485 70,073 1,365 64,411 2,670 125,990
</TABLE>
99
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Ethyl Corp 1,031 $ 5,026 889 $ 4,334
Ferro Corp 457 9,768 330 7,054
FMC Corp+ 2 102 223 11,415
Fuller (H B) Co 0 -- 0 --
Geon Co 0 -- 0 --
Georgia Gulf Corp 237 3,585 317 4,795
Goodrich (B F) Co 82 2,798 591 20,168
Grace (W R) Co+ 42 564 601 8,076
Great Lakes Chemical Corp 67 2,609 418 16,276
Hanna (M A) Co 280 3,080 572 6,292
Hercules Inc 82 2,270 738 20,433
IMC Global Inc 536 10,687 1,443 28,770
Imperial Chemical Industries
PLC ADR (UK) 1,149 40,359 4,141 145,453
International Flavor &
Fragrances 156 6,425 703 28,955
Johns Manville Corp 100 1,756 440 7,728
Lawter International Inc 0 -- 0 --
Lubrizol Corp 329 6,272 857 16,337
Lyondell Petrochemical 76 1,017 698 9,336
Millennium Chemicals Inc 410 7,406 1,099 19,851
Mississippi Chemical Corp 11 113 24 246
Monsanto Co 720 32,805 4,041 184,118
Montedison Spa ADR (Italy) 4,884 48,230 17,507 172,882
Morton International Inc 128 4,624 1,017 36,739
Nalco Chemical Co 64 1,800 509 14,316
Octel Corp+ 19 255 118 1,586
OEA Inc 0 -- 0 --
Olin Corp 270 3,426 669 8,488
Praxair Inc 198 6,918 1,171 40,912
Premark International Inc 461 14,723 533 17,023
Rhone Poulenc Rorer Class A 2,214 101,843 8,155 375,130
Rohm & Haas Co 143 4,469 1,375 42,969
RPM Inc 372 5,138 1,383 19,103
Rubbermaid Inc 142 4,695 1,119 36,997
Schulman (A) Inc 403 6,650 369 6,089
Sigma-Aldrich Corp 118 3,112 758 19,992
Solutia Inc 643 11,453 1,372 24,439
Terra Industries Inc 500 2,469 352 1,738
Union Carbide Corp 125 5,500 1,016 44,704
USEC Inc 500 7,094 1,508 21,395
Valhi Inc 0 -- 100 1,150
Wellman Inc 363 3,380 246 2,291
------------ ------------
TOTAL CHEMICALS
- VALUE $ 561,779 $ 2,275,212
- COST $ 559,589 $ 2,154,948
</TABLE>
100
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,778 $ 8,668 1,168 $ 5,694 2,235 $ 10,896
573 12,248 443 9,469 1,079 23,064
618 31,634 576 29,484 1,133 57,994
197 8,348 0 -- 0 --
0 -- 0 -- 265 6,045
653 9,877 415 6,277 565 8,546
1,393 47,536 1,201 40,984 2,433 83,025
1,316 17,684 1,126 15,131 2,478 33,298
1,080 42,053 1,040 40,495 1,977 76,978
1,111 12,221 1,161 12,771 2,351 25,861
1,691 46,820 1,551 42,943 3,133 86,744
2,594 51,718 2,494 49,724 5,132 102,318
8,233 289,184 8,073 283,563 16,147 567,162
1,764 72,655 1,498 61,699 3,504 144,320
789 13,857 804 14,120 1,678 29,470
593 4,225 0 -- 0 --
1,517 28,918 1,466 27,946 3,003 57,244
1,167 15,609 975 13,041 2,160 28,890
2,039 36,829 1,916 34,608 3,927 70,930
92 943 66 676 103 1,056
9,729 443,278 8,714 397,031 19,770 900,770
34,799 343,640 34,122 336,954 67,810 669,623
2,426 87,639 2,219 80,161 4,244 153,314
1,168 32,850 1,147 32,259 2,169 61,002
263 3,534 233 3,131 422 5,671
270 3,004 199 2,214 0 --
1,208 15,327 1,212 15,377 2,438 30,932
2,840 99,223 2,672 93,353 5,470 191,107
1,431 45,703 1,425 45,511 2,959 94,502
16,306 750,076 15,942 733,331 31,745 1,460,269
3,165 98,906 2,974 92,937 6,046 188,937
2,552 35,250 2,417 33,385 5,021 69,352
2,656 87,814 2,500 82,656 5,086 168,155
601 9,917 550 9,075 1,047 17,276
1,814 47,844 1,709 45,075 3,279 86,483
2,201 39,205 2,875 51,211 6,040 107,587
614 3,032 446 2,202 972 4,799
2,409 105,996 2,259 99,396 4,594 202,135
2,642 37,483 2,589 36,731 5,299 75,179
0 -- 0 -- 265 3,048
434 4,042 326 3,036 746 6,947
------------ ------------ ------------
$ 4,998,366 $ 4,652,612 $ 9,815,645
$ 4,648,036 $ 4,317,146 $ 9,760,910
</TABLE>
101
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
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% 0.03%
ServiceMaster Co 1,000 $ 18,688 2,688 $ 50,232
Stewart Enterprises Inc
Class A 400 6,000 892 13,380
Valassis Communications Inc+ 100 4,800 264 12,672
------------ ------------
TOTAL COMMERCIAL SERVICES
- VALUE $ 29,488 $ 76,284
- COST $ 32,731 $ 87,918
COMPUTER SOFTWARE
Percent of Net Assets 1.50% 2.83%
3Com Corp+ 390 $ 12,261 2,775 $ 87,239
Adobe Systems Inc 112 4,508 538 21,655
Altera Corp+ 420 20,423 1,262 61,365
America Online Inc 4,800 426,899 10,520 935,622
American Management Systems
Inc+ 0 -- 0 --
Anixter International Inc+ 500 6,281 440 5,528
At Home Corp Series A+ 100 10,625 264 28,017
Autodesk Inc 76 3,050 296 11,877
Automatic Data Processing 558 22,181 4,016 159,636
BEA Systems Inc+ 0 -- 88 1,507
BMC Software Inc+ 1,049 42,878 1,365 55,794
Cadence Design Systems Inc+ 1,164 28,009 2,409 57,967
Cambridge Technology
Partners+ 0 -- 352 8,844
Ceridian Corp+ 96 6,876 502 35,956
Choicepoint Inc+ 141 7,332 123 6,396
CIBER Inc+ 200 5,025 440 11,055
Citrix Systems Inc+ 200 15,425 396 30,542
Computer Associates
International Inc 524 22,008 3,517 147,714
Computer Sciences Corp 242 16,123 1,027 68,424
Compuware Corp+ 900 50,344 1,690 94,534
CSK Corp ADR (Japan) 1,916 54,606 7,720 220,020
DST Systems Inc+ 200 10,850 352 19,096
Electronic Arts Inc+ 400 15,950 616 24,563
Electronic Data Systems Corp 568 26,412 3,725 173,213
First Data Corp 453 17,327 3,465 132,536
Fiserv Inc+ 425 19,975 876 41,172
Gartner Group Inc Class A+ 200 4,488 616 13,822
I2 Technologies Inc+ 0 -- 176 4,389
IMS Health Inc 200 7,100 2,114 75,047
Information Resources Inc+ 0 -- 0 --
Informix Corp+ 1,390 12,163 1,161 10,159
Intuit Inc+ 300 29,681 528 52,239
J.D. Edwards & Co+ 200 3,163 352 5,566
Keane Inc+ 300 9,281 792 24,503
Legato Systems Inc+ 0 -- 440 21,670
</TABLE>
102
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MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.04% 0.05% 0.06%
5,045 $ 94,278 4,728 $ 88,355 9,790 $ 182,950
1,415 21,225 1,250 18,750 4,593 68,894
526 25,248 536 25,728 1,148 55,103
------------ ------------ ------------
$ 140,751 $ 132,833 $ 306,947
$ 163,477 $ 154,748 $ 355,063
4.07% 4.99% 6.18%
6,517 $ 204,878 5,988 $ 188,247 12,261 $ 385,454
1,203 48,421 1,142 45,966 2,274 91,528
1,885 91,658 2,229 108,385 4,575 222,458
17,426 1,549,825 16,676 1,483,121 37,150 3,304,027
0 -- 0 -- 88 2,937
438 5,502 625 7,852 1,060 13,316
526 55,822 536 56,883 1,148 121,831
761 30,535 659 26,442 1,667 66,887
9,618 382,315 8,703 345,943 20,106 799,213
263 4,504 179 3,065 353 6,045
3,299 134,847 2,939 120,132 6,890 281,628
3,825 92,039 3,652 87,876 10,184 245,052
614 15,427 625 15,703 1,325 33,291
1,216 87,096 1,084 77,642 2,478 177,486
319 16,588 238 12,376 427 22,204
789 19,824 714 17,939 1,590 39,949
745 57,458 937 72,266 2,031 156,640
8,716 366,072 7,778 326,675 17,940 753,479
2,492 166,030 2,311 153,969 5,212 347,248
2,865 160,261 2,758 154,275 6,276 351,063
17,920 510,720 17,611 501,913 35,252 1,004,681
789 42,803 714 38,735 1,501 81,428
1,402 55,905 1,429 56,981 2,915 116,235
8,826 410,409 8,176 380,183 16,875 784,687
8,093 309,557 7,409 283,393 15,274 584,230
1,588 74,636 1,422 66,834 3,923 184,380
1,140 25,579 1,161 26,050 2,385 53,512
263 6,559 268 6,683 618 15,411
5,155 183,003 4,670 165,784 10,665 378,607
353 2,956 0 -- 0 --
2,733 23,914 1,909 16,704 4,575 40,031
789 78,062 804 79,546 2,561 253,378
614 9,709 625 9,883 1,413 22,343
1,327 41,054 1,696 52,470 3,533 109,301
789 38,858 804 39,597 88 4,334
</TABLE>
103
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
LHS Group Inc+ 100 $ 4,300 176 $ 7,568
Mentor Graphics Corp+ 600 8,400 616 8,624
Microsoft Corp+ 2,413 362,251 16,472 2,472,858
MobileMedia Corp+ 300 -- 200 --
Momentum Business
Applications Inc+ 17 147 31 267
National Data Corp 200 9,663 440 21,258
NEC Corp ADR (Japan) 1,183 59,002 4,713 235,061
Netscape Communications
Corp+ 401 31,052 884 68,455
Network Associates Inc+ 725 34,075 1,574 73,978
Novell Inc+ 425 8,234 2,746 53,204
Objective Systems Integrator
Corp+ 0 -- 88 264
Oracle Corp+ 961 53,696 6,398 357,488
Parametric Technology Corp+ 120 1,845 1,786 27,460
Peoplesoft Inc+ 775 14,628 1,595 30,106
Platinum Technology Inc+ 300 3,975 1,068 14,151
Renaissance Worldwide Inc+ 200 1,250 440 2,750
Reynolds & Reynolds Co Class
A 246 4,643 910 17,176
Shiva Corp+ 300 1,791 264 1,576
Siebel Systems Inc+ 300 13,200 706 31,064
Sterling Commerce Inc+ 377 9,802 1,189 30,914
Sterling Software Inc+ 300 7,650 980 24,990
Storage Technology Corp+ 618 21,514 1,218 42,402
Structural Dynamics
Research+ 303 5,909 0 --
Sun Microsystems Inc+ 472 45,932 2,985 290,478
Sungard Data Systems Inc+ 500 19,813 1,156 45,807
Symantec Corp+ 278 5,021 892 16,112
Synopsys Inc+ 400 18,500 792 36,630
The Learning Company Inc+ 160 4,650 669 19,443
Total System Services Inc 450 10,238 484 11,011
Veritas Software Corp+ 300 21,300 528 37,488
Yahoo! Inc+ 400 61,400 1,684 258,494
------------ ------------
TOTAL COMPUTER SOFTWARE
- VALUE $ 1,755,125 $ 6,884,744
- COST $ 938,004 $ 3,654,463
COMPUTER SYSTEMS
Percent of Net Assets 0.62% 1.88%
Adaptec Inc+ 600 $ 11,963 1,684 $ 33,575
Apple Computer Inc+ 125 4,352 1,035 36,031
Aztec Technology Partners
Inc+ 0 -- 161 746
Cabletron Systems Inc+ 177 1,438 1,214 9,864
Cisco Systems Inc+ 1,491 145,837 10,426 1,019,792
Cognex Corp+ 0 -- 264 6,600
Compaq Computer Corp 1,877 66,164 12,877 453,913
Comverse Technology Inc+ 300 21,525 440 31,570
</TABLE>
104
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
351 $ 15,093 357 $ 15,351 707 $ 30,401
747 10,458 893 12,502 1,413 19,782
39,935 5,995,242 35,918 5,392,189 82,716 12,417,739
400 -- 300 -- 700 1
72 621 66 569 148 1,277
877 42,370 893 43,143 1,766 85,319
11,010 549,124 10,914 544,335 21,549 1,074,755
1,592 123,281 1,625 125,836 3,308 256,162
2,467 115,949 2,332 109,604 6,779 318,612
6,380 123,613 5,922 114,739 11,708 226,842
0 -- 0 -- 177 531
15,632 873,438 13,966 780,349 32,267 1,802,918
4,523 69,541 3,969 61,023 9,353 143,801
3,830 72,291 3,345 63,137 7,770 146,658
1,853 24,552 1,786 23,665 3,621 47,978
789 4,931 803 5,019 1,502 9,388
1,688 31,861 1,475 27,841 3,268 61,683
526 3,140 357 2,131 530 3,163
1,234 54,296 1,166 51,304 2,576 113,343
2,076 53,976 1,961 50,986 3,952 102,751
1,765 45,008 1,607 40,979 3,356 85,577
1,913 66,596 1,816 63,220 5,609 195,262
380 7,410 285 5,558 0 --
6,899 671,359 6,347 617,641 13,317 1,295,910
1,765 69,938 2,321 91,970 4,769 188,971
1,622 29,297 1,394 25,179 3,003 54,241
1,490 68,913 1,518 70,208 3,003 138,888
240 6,975 143 4,156 442 12,846
964 21,931 893 20,316 1,943 44,203
1,052 74,692 1,027 72,917 2,120 150,519
2,554 392,039 2,322 356,426 2,296 352,435
------------ ------------ ------------
$ 14,920,761 $ 13,821,806 $ 30,436,250
$ 7,882,268 $ 7,368,224 $ 17,058,668
2.97% 3.57% 4.46%
3,080 $ 61,408 2,946 $ 58,736 6,094 $ 121,498
2,452 85,360 2,308 80,347 4,489 156,272
336 1,554 288 1,330 644 2,980
2,989 24,286 2,632 21,385 5,051 41,039
25,324 2,477,004 22,615 2,212,029 52,366 5,122,049
614 15,350 536 13,400 1,148 28,700
30,147 1,062,682 27,909 983,791 57,356 2,021,798
789 56,611 1,071 76,844 2,296 164,737
</TABLE>
105
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Data General Corp+ 4 $ 55 424 $ 5,857
Dell Computer Corp+ 1,266 101,437 8,312 665,998
EMC Corp+ 423 43,305 3,280 335,790
Exabyte Corp+ 0 -- 0 --
Gateway 2000 Inc+ 145 10,540 935 67,963
Harris Corp 104 3,237 707 22,005
Hewlett-Packard Co 1,134 75,340 8,013 532,363
Intergraph Corp+ 54 299 322 1,781
International Business
Machine Corp 940 159,799 6,207 1,055,189
Iomega Corp+ 1,000 6,063 3,469 21,031
Komag Inc+ 400 2,800 528 3,696
NCR Corp+ 571 23,375 1,208 49,453
Quantum Corp+ 700 11,506 1,860 30,574
Rational Software Corp+ 0 -- 792 23,513
Seagate Technology Inc+ 217 6,279 1,824 52,782
Sequent Computer Systems+ 340 3,241 0 --
Shared Medical System Corp 42 2,142 150 7,650
Silicon Graphics Inc+ 204 3,251 1,414 22,536
Sybase Inc+ 700 5,688 616 5,005
Unisys Corp+ 240 7,155 1,642 48,952
Unova Inc+ 34 493 382 5,539
Wallace Computer Services
Inc 90 2,036 176 3,982
Western Digital Corp+ 700 6,738 1,232 11,858
Xylan Corp+ 100 2,650 88 2,332
------------ ------------
TOTAL COMPUTER SYSTEMS
- VALUE $ 728,708 $ 4,567,940
- COST $ 435,579 $ 2,213,728
CONTAINER & PACKAGING
Percent of Net Assets 0.06% 0.13%
Ball Corp 44 $ 1,843 281 $ 11,767
Crown Cork & Seal Co 165 4,579 1,014 28,139
International Paper Co 332 13,944 2,336 98,112
Jefferson Smurfit Group ADR
(Ireland) 805 17,609 2,860 62,563
Smurfit-Stone Container
Corp+ 686 12,391 1,104 19,941
Sonoco Products 526 12,887 1,212 29,694
Temple-Inland Inc 49 2,937 455 27,272
Tenneco Inc 108 3,233 1,315 39,368
Tupperware Corp 63 1,103 380 6,650
------------ ------------
TOTAL CONTAINER & PACKAGING
- VALUE $ 70,526 $ 323,506
- COST $ 79,184 $ 392,661
</TABLE>
106
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
881 $ 12,169 772 $ 10,663 1,577 $ 21,782
20,358 1,631,185 18,339 1,469,411 42,331 3,391,770
8,048 823,914 7,269 744,163 16,751 1,714,883
298 1,490 0 -- 0 --
2,515 182,809 2,325 168,997 2,915 211,883
1,520 47,310 1,363 42,423 2,612 81,298
18,775 1,247,364 17,381 1,154,749 35,559 2,362,450
755 4,176 523 2,893 876 4,845
14,910 2,534,700 13,488 2,292,959 30,953 5,262,009
6,267 37,994 5,967 36,175 12,203 73,980
964 6,748 714 4,998 972 6,804
1,924 78,764 1,843 75,448 5,321 217,827
3,413 56,101 3,277 53,866 6,801 111,790
1,578 46,847 1,429 42,423 2,826 83,896
4,383 126,833 3,963 114,679 8,176 236,592
413 3,936 304 2,898 0 --
456 23,256 374 19,074 934 47,634
3,419 54,490 3,198 50,968 6,411 102,174
1,227 9,969 1,071 8,702 2,208 17,940
4,141 123,454 3,660 109,114 8,421 251,050
927 13,442 730 10,585 1,467 21,272
263 5,950 277 6,267 618 13,982
2,367 22,782 2,143 20,626 4,593 44,208
0 -- 89 2,359 177 4,691
------------ ------------ ------------
$ 10,879,938 $ 9,892,302 $ 21,943,833
$ 5,037,303 $ 4,449,907 $ 11,203,653
0.20% 0.24% 0.29%
532 $ 22,278 528 $ 22,110 939 $ 39,321
2,239 62,132 2,040 56,610 4,167 115,633
5,533 232,386 5,143 216,005 10,544 442,847
5,640 123,375 5,151 112,678 11,094 242,680
3,338 60,290 2,912 52,598 6,114 110,433
1,923 47,114 2,218 54,341 5,317 130,266
1,016 60,897 949 56,881 1,895 113,581
3,053 91,399 2,782 83,286 5,672 169,804
1,126 19,705 914 15,995 2,267 39,673
------------ ------------ ------------
$ 719,576 $ 670,504 $ 1,404,238
$ 864,326 $ 808,672 $ 1,757,328
</TABLE>
107
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FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
ELECTRICAL EQUIPMENT
Percent of Net Assets 0.48% 1.23%
Aeroquip-Vickers Inc 52 $ 2,945 229 $ 12,967
Alliance Semiconductor Corp+ 0 -- 0 --
Arrow Electronics Inc+ 386 5,476 1,237 17,550
Avnet Inc 230 9,128 484 19,209
FORE Systems Inc+ 400 5,800 1,244 18,038
General Electric Co 3,903 391,519 21,622 2,168,956
Grainger (W W) Inc 72 3,204 754 33,553
Handleman Co+ 59 763 116 1,501
Hitachi Ltd ADR (Japan) 732 45,521 3,124 194,274
Hubbell Inc Class B 332 12,367 674 25,107
Masco Corp 322 8,453 2,583 67,804
Motorola Inc 776 54,514 4,916 345,349
National Service Industries
Inc 39 1,253 332 10,666
Raychem Corp 44 1,004 674 15,376
Symbol Technologies Inc 285 15,105 679 35,987
Thomas & Betts Corp 58 2,418 434 18,092
------------ ------------
TOTAL ELECTRICAL EQUIPMENT
- VALUE $ 559,470 $ 2,984,429
- COST $ 410,056 $ 1,924,414
ELECTRONICS
Percent of Net Assets 1.07% 2.11%
Advanced Micro Devices+ 130 $ 2,324 1,076 $ 19,234
American Power Conversion+ 400 14,350 962 34,512
AMP Inc 209 11,116 1,670 88,823
Analog Devices Inc+ 901 22,581 1,883 47,193
Applied Materials Inc+ 415 23,084 2,836 157,753
Atmel Corp+ 662 11,378 1,373 23,598
C-Cube Microsystems Inc+ 100 1,875 264 4,950
Canon Inc ADR (Japan) 1,390 30,059 6,130 132,561
CBS Corp 760 28,025 5,472 201,780
Cirrus Logic Inc+ 634 5,151 686 5,574
Commscope Inc+ 50 928 304 5,643
Conexant Systems Inc+ 110 1,870 890 15,122
Cypress Semiconductor Corp+ 800 7,650 739 7,067
EG&G Inc 25 663 333 8,825
Electronics for Imaging Inc+ 400 13,975 440 15,373
Emerson Electric Co 565 32,452 2,943 169,039
Etec Systems Inc+ 0 -- 176 7,799
Fuji Photo Film Co Ltd ADR
(Japan) 975 36,075 3,960 146,520
General Instrument Corp+ 0 -- 935 27,349
General Motors Class H+ 600 28,312 1,332 62,854
General Semiconductor Inc+ 37 241 229 1,489
</TABLE>
108
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1.94% 2.33% 2.91%
552 $ 31,257 433 $ 24,519 1,026 $ 58,096
0 -- 0 -- 221 774
2,290 32,489 2,161 30,659 4,372 62,027
889 35,282 946 37,544 1,956 77,628
2,204 31,958 2,143 31,074 4,328 62,755
52,414 5,257,779 47,108 4,725,520 108,512 10,885,109
1,772 78,854 1,655 73,648 3,286 146,226
409 5,291 274 3,545 460 5,951
7,158 445,138 7,064 439,292 14,076 875,350
1,409 52,485 1,459 54,348 2,916 108,620
6,168 161,910 5,644 148,154 11,657 305,995
11,342 796,776 10,288 722,731 20,439 1,435,839
756 24,287 669 21,492 1,364 43,819
1,493 34,059 1,356 30,934 2,847 64,946
1,295 68,635 1,279 67,787 2,550 135,149
995 41,479 963 40,145 1,814 75,620
------------ ------------ ------------
$ 7,097,679 $ 6,451,392 $ 14,343,904
$ 4,476,618 $ 4,156,010 $ 9,904,479
3.14% 3.89% 4.72%
2,582 $ 46,153 2,357 $ 42,131 4,589 $ 82,027
1,585 56,862 1,437 51,552 4,116 147,660
3,949 210,037 3,595 191,208 7,348 390,821
3,026 75,839 2,822 70,726 8,240 206,514
6,637 369,183 6,129 340,925 12,565 698,927
2,600 44,688 2,400 41,250 5,411 93,001
263 4,931 357 6,694 618 11,588
14,245 308,048 14,105 305,020 28,020 605,932
12,879 474,913 11,932 439,992 24,561 905,686
1,311 10,652 952 7,735 1,334 10,839
694 12,882 546 10,135 1,371 25,449
1,882 31,994 1,624 27,608 3,175 53,974
1,196 11,437 1,271 12,154 2,800 26,775
852 22,578 718 19,027 1,517 40,201
877 30,640 893 31,199 1,766 61,699
6,950 399,191 6,336 363,923 14,348 824,112
351 15,554 268 11,876 618 27,385
9,224 341,288 9,036 334,331 18,050 667,849
2,435 71,224 2,130 62,303 200 5,850
2,028 95,696 1,875 88,477 5,476 258,398
521 3,387 410 2,665 1,028 6,682
</TABLE>
109
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Honeywell Inc 164 $ 11,470 984 $ 68,819
Imation Corp+ 276 4,278 454 7,037
Input/Output Inc+ 500 2,813 440 2,475
Integrated Device Technology
Inc+ 700 4,506 704 4,532
Intel Corp 1,666 199,815 10,976 1,316,433
International Rectifier
Corp+ 500 3,438 440 3,025
Jabil Circuit+ 200 6,525 352 11,484
Johnson Controls Inc 86 5,289 665 40,898
KLA Instruments Corp+ 94 4,870 701 36,321
Kyocera Corp ADR (Japan) 860 41,011 3,258 155,366
Lam Research Corp+ 300 8,869 264 7,805
Lattice Semiconductor+ 100 3,975 352 14,036
Lexmark International Group
Class A+ 400 41,275 792 81,725
Linear Technology Corp 972 42,586 1,796 78,687
Litton Industries Inc+ 201 11,281 343 19,251
LSI Logic Corp+ 118 3,061 1,099 28,505
Macromedia Inc+ 400 12,225 352 10,758
Matsushita Electric
Industries Co 257 42,260 1,133 186,308
Maxim Integrated Products
Inc+ 700 29,181 1,420 59,196
MEMC Electronic Materials
Inc+ 300 2,175 264 1,914
Microchip Technology Inc+ 400 10,900 704 19,184
Micron Electronics Inc+ 0 -- 176 2,530
Micron Technology Inc+ 245 14,118 1,582 91,163
Molex Inc 316 8,453 524 14,017
Molex Inc Class A 312 7,332 1,049 24,652
National Semiconductor+ 186 1,953 1,192 12,516
Novellus System Inc+ 200 11,813 440 25,988
Perkin-Elmer Corp 19 1,800 386 36,574
Philips Electronics NV ADR
(Netherlands) 583 40,591 1,947 135,560
Pioneer Electronics Corp 2,192 40,415 8,917 164,407
Pitney Bowes Inc 266 16,808 1,821 115,064
Pixar Inc+ 0 -- 88 3,619
Policy Management Systems
Corp+ 496 18,135 299 10,932
Premier Farnell PLC ADR (UK) 2,599 15,594 9,419 56,514
Rambus Inc+ 0 -- 88 6,397
Raytheon Co Class B 384 20,520 2,578 137,762
Read-Rite Corp+ 400 3,400 440 3,740
Sanmina Corp+ 200 10,425 440 22,990
SCI Systems Inc+ 400 12,375 704 21,780
Sensormatic Electronics+ 535 5,618 765 8,033
Solectron Corp+ 1,200 53,625 2,228 99,564
SONY Corp ADR (Japan) 468 34,954 1,882 140,562
Tektronix Inc 3 59 356 6,942
Teradyne Inc+ 476 22,670 898 42,767
</TABLE>
110
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,299 $ 160,786 2,142 $ 149,805 4,307 $ 301,220
615 9,532 653 10,121 1,428 22,134
876 4,928 625 3,516 972 5,468
1,490 9,592 714 4,596 1,855 11,942
26,586 3,188,658 23,975 2,875,501 55,257 6,627,385
877 6,029 625 4,297 972 6,683
702 22,903 714 23,294 1,414 46,132
1,556 95,694 1,430 87,945 2,840 174,659
1,559 80,776 1,455 75,387 3,023 156,628
7,252 345,830 7,260 346,210 14,454 689,274
438 12,948 446 13,185 1,060 31,336
614 24,483 625 24,922 1,237 49,325
1,140 117,634 1,161 119,801 3,003 309,871
2,804 122,850 2,696 118,119 8,038 352,164
621 34,854 896 50,288 1,836 103,045
2,542 65,933 2,426 62,924 4,610 119,571
614 18,765 446 13,631 795 24,297
2,561 421,124 2,521 414,546 4,966 816,596
2,291 95,506 2,054 85,626 6,359 265,090
351 2,545 357 2,588 707 5,126
1,315 35,834 1,295 35,289 2,738 74,610
351 5,046 268 3,853 442 6,354
3,910 225,314 3,570 205,720 7,103 409,309
1,087 29,077 998 26,697 2,193 58,662
1,805 42,418 1,686 39,621 3,512 82,531
2,984 31,332 2,779 29,180 5,376 56,447
877 51,798 804 47,486 1,678 99,106
794 75,232 748 70,873 1,687 159,842
3,881 270,215 3,858 268,612 7,625 530,890
20,694 381,546 20,537 378,650 40,856 753,282
4,423 279,478 3,909 246,999 9,119 576,206
263 10,816 268 11,022 530 21,796
531 19,415 461 16,855 866 31,663
18,699 112,194 17,176 103,056 36,409 218,453
263 19,117 179 13,011 442 32,128
6,135 327,839 5,633 301,012 11,561 617,790
526 4,471 714 6,069 1,502 12,767
701 36,627 714 37,307 1,590 83,077
1,402 43,374 1,429 44,210 2,915 90,182
1,510 15,855 936 9,828 1,665 17,482
3,966 177,231 3,770 168,471 8,516 380,558
4,350 324,891 4,233 316,151 8,466 632,303
904 17,628 808 15,756 1,724 33,618
1,581 75,295 2,054 97,822 4,284 204,025
</TABLE>
111
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Texas Instruments Inc 450 $ 40,134 2,982 $ 265,957
Thermo Instrument Systems
Inc+ 250 3,703 225 3,333
Vishay Intertechnology Inc+ 463 5,990 412 5,330
Vitesse Semiconductor Corp+ 300 13,763 792 36,383
VLSI Technology Inc+ 200 3,100 352 5,456
Xerox Corp 830 45,806 4,312 237,969
Xilinx Inc+ 447 31,178 792 55,242
Zenith Electronics Corp+ 44 16 89 32
------------ ------------
TOTAL ELECTRONICS
- VALUE $ 1,248,260 $ 5,130,592
- COST $ 1,030,747 $ 3,617,491
ENERGY & RELATED
Percent of Net Assets 1.10% 2.60%
AGL Resources Inc 538 $ 10,256 387 $ 7,377
Amerada Hess Corp 122 5,536 705 31,989
Anadarko Petroleum Corp 162 4,455 905 24,888
Apache Corp 96 1,914 818 16,309
Ashland Inc 99 4,406 581 25,855
Atlantic Richfield Corp 333 18,190 2,485 135,743
BP Amoco PLC ADR (Great
Britain) 1,954 166,089 9,350 794,749
Burlington Resources Inc 204 6,605 1,301 42,120
Chesapeake Energy Corp+ 0 -- 352 242
Chevron Corp 770 59,194 4,980 382,838
Coastal Corp 244 7,808 1,568 50,176
Columbia Gas System Inc 142 7,146 642 32,396
Conoco Inc 0 -- 100 2,031
Consolidated Natural Gas Co 122 6,702 711 39,061
Cooper Cameron Corp+ 300 6,938 616 14,245
Devon Energy Corp 0 -- 176 4,125
Diamond Offshore Drilling
Inc 300 6,206 980 20,274
Dynegy Inc 0 -- 0 --
Eastern Enterprises 39 1,499 180 6,919
EEX Corp+ 45 273 355 2,152
ELF Aquitaine ADR (France) 1,556 80,328 5,612 289,720
Enron Corp 338 21,970 2,538 164,970
Enron Oil & Gas Co 200 3,300 980 16,170
Exxon Corp 3,057 203,481 20,228 1,346,425
Global Marine Inc+ 800 6,200 2,189 16,965
Halliburton Co 575 16,244 3,195 90,259
Helmerich & Payne Inc 30 489 400 6,525
Indiana Energy Inc 0 -- 0 --
Kerr-McGee Corp 43 1,228 328 9,369
McMoRan Exploration Co+ 46 748 41 666
MCN Corp 0 -- 0 --
</TABLE>
112
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
7,051 $ 628,861 6,545 $ 583,731 13,322 $ 1,188,155
394 5,836 457 6,769 814 12,057
812 10,505 722 9,341 1,529 19,781
1,678 77,083 1,518 69,733 3,180 146,080
877 13,594 714 11,067 1,502 23,281
10,400 573,950 9,444 521,190 21,270 1,173,837
1,367 95,348 1,673 116,692 3,462 241,474
279 100 230 83 367 132
------------ ------------ ------------
$ 11,495,867 $ 10,759,389 $ 23,257,193
$ 8,017,047 $ 7,639,049 $ 17,530,241
3.82% 4.67% 4.97%
699 $ 13,325 498 $ 9,493 459 $ 8,750
1,694 76,865 1,531 69,469 3,073 139,436
2,132 58,630 1,963 53,983 3,942 108,404
1,806 36,007 1,638 32,658 3,179 63,380
1,385 61,633 1,285 57,183 2,584 114,987
5,837 318,846 5,367 293,171 11,015 601,693
19,994 1,699,490 18,554 1,577,089 16,981 1,443,384
3,213 104,021 2,984 96,607 5,922 191,724
876 602 446 307 884 608
11,763 904,281 10,931 840,320 22,389 1,721,153
3,827 122,464 3,540 113,280 7,265 232,479
1,574 79,487 1,375 69,438 2,826 142,712
100 2,031 -- -- 265 5,383
1,785 98,063 1,626 89,328 3,213 176,513
1,140 26,363 1,161 26,848 2,385 55,152
438 10,266 357 8,367 795 18,633
1,765 36,513 1,607 33,245 3,356 69,426
1,402 16,824 -- -- 0 --
421 16,182 382 14,683 711 27,329
564 3,419 697 4,226 1,433 8,688
11,129 574,535 10,865 560,905 21,650 1,117,680
5,925 385,125 5,501 357,564 11,240 730,599
1,765 29,123 1,518 25,047 3,445 56,842
46,376 3,086,903 41,911 2,789,700 83,542 5,560,763
4,007 31,054 3,764 29,171 7,923 61,402
6,964 196,733 6,311 178,285 14,439 407,901
905 14,763 840 13,703 1,675 27,323
411 8,226 -- -- 0 --
1,555 44,403 1,457 41,607 3,092 88,311
79 1,284 41 666 79 1,284
815 14,517 0 -- 0 --
</TABLE>
113
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Mobil Corp 869 $ 72,290 5,990 $ 498,292
Murphy Oil Corp 293 10,017 510 17,436
Nabors Industries Inc+ 500 5,750 1,332 15,318
National Fuel Gas Co 0 -- 0 --
NICOR Inc 44 1,680 330 12,602
Noble Affiliates Inc 238 5,385 742 16,788
Noble Drilling Corp+ 700 8,663 1,860 23,018
Occidental Petroleum Corp 400 6,025 2,755 41,497
Ocean Energy Inc+ 500 2,125 1,425 6,056
ONEOK Inc 49 1,320 225 6,061
Oryx Energy Co+ 149 1,546 787 8,165
Parker Drilling Co+ 0 -- 0 --
Pennzenergy Co 32 300 408 3,825
Pennzoil-Quaker State Co 32 398 408 5,075
Peoples Energy Corp 53 1,799 245 8,315
Phillips Petroleum Co 269 10,407 2,179 84,300
Pioneer Natural Resources
C.L.C. 476 2,469 1,329 6,894
Pogo Producing Co 300 2,775 264 2,442
Pride International Inc+ 0 -- 352 1,760
Questar Corp 354 6,328 1,138 20,342
Reading & Bates Falcon Corp+ 372 2,046 1,531 8,421
Repsol SA 767 40,268 2,800 147,000
Rowan Co Inc+ 66 569 669 5,770
Royal Dutch Petroleum Corp 3,876 170,059 13,868 608,458
Santa Fe Energy Resources
Inc+ 83 436 712 3,738
Schlumberger Ltd 781 37,927 3,655 177,496
Seagull Energy Corp+ 391 1,857 536 2,546
Services (B J) Co+ 300 4,219 1,068 15,019
Sonat Offshore Drilling Co 122 3,088 886 22,427
Sunoco Inc 105 3,196 718 21,854
Texaco Inc 612 28,496 4,071 189,556
Tosco Corp 771 15,950 1,895 39,203
Total Compagnie Francaise
des Petroles SA ADR
(France) 2,028 104,695 7,375 380,734
Transocean Offshore Inc 400 8,250 1,244 25,658
TransTexas Gas Corp+ 0 -- 0 --
Ultramar Diamond Shamrock
Corp 510 10,073 1,116 22,041
Union Pacific Resources
Group 242 2,163 1,903 17,008
Unocal Corp 204 5,750 1,836 51,752
USX--Marathon Group 365 7,551 2,430 50,271
Utilicorp United Inc 0 -- 0 --
Valero Energy Corp 180 3,161 778 13,664
Vastar Resources Inc 200 7,700 264 10,164
Washington Gas & Light 464 11,107 317 7,588
</TABLE>
114
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
14,116 $ 1,174,275 12,983 $ 1,080,022 26,800 $ 2,229,424
1,032 35,282 979 33,470 2,093 71,553
2,366 27,209 2,258 25,967 4,593 52,819
510 20,559 -- -- 0 --
889 33,949 801 30,588 1,559 59,533
1,391 31,471 1,212 27,422 2,579 58,349
3,256 40,293 3,125 38,672 6,448 79,793
6,362 95,828 5,794 87,272 12,205 183,837
2,288 9,724 2,303 9,788 4,584 19,482
593 15,974 497 13,388 955 25,725
0 -- -- -- 0 --
740 1,850 552 1,380 0 --
882 8,269 767 7,191 1,484 13,913
1,184 14,726 986 12,263 1,484 18,457
659 22,365 577 19,582 1,181 40,080
4,961 191,929 4,425 171,191 8,724 337,509
2,409 12,497 2,219 11,511 4,648 24,112
526 4,866 446 4,126 972 8,991
701 3,505 714 3,570 1,502 7,510
1,958 34,999 1,857 33,194 3,763 67,263
2,744 15,092 2,587 14,229 5,337 29,354
5,675 297,938 5,650 296,624 11,013 578,181
1,489 12,843 1,417 12,222 2,819 24,314
27,612 1,211,476 26,930 1,181,553 53,872 2,363,633
1,643 8,626 1,106 5,806 2,496 13,104
8,691 422,057 7,783 377,961 17,813 865,043
1,094 5,196 985 4,679 2,010 9,548
1,941 27,295 1,696 23,850 3,710 52,172
2,020 51,131 1,854 46,929 3,646 92,288
1,683 51,226 1,611 49,035 3,187 97,003
9,697 451,517 8,918 415,243 18,423 857,820
3,490 72,199 3,372 69,758 6,920 143,157
14,814 764,773 14,367 741,695 28,765 1,484,992
2,204 45,458 2,054 42,364 4,240 87,449
0 -- -- -- 265 282
1,715 33,871 2,264 44,714 4,527 89,407
4,508 40,290 4,237 37,868 8,313 74,296
4,350 122,616 3,991 112,496 8,254 232,659
5,589 115,622 5,036 104,182 9,937 205,571
592 20,350 -- -- 0 --
1,383 24,289 1,236 21,707 2,703 47,471
438 16,863 446 17,171 883 33,996
547 13,094 405 9,695 389 9,312
</TABLE>
115
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Williams Co Inc 560 $ 20,720 3,558 $ 131,646
Witco Corp 216 3,659 874 14,803
------------ ------------
TOTAL ENERGY & RELATED
- VALUE $ 1,279,422 $ 6,319,561
- COST $ 1,274,372 $ 5,677,988
ENGINEERING & CONSTRUCTION
Percent of Net Assets 0.03% 0.05%
Armstrong World Industries
Inc 92 $ 4,525 284 $ 13,969
Centex Corp 104 3,829 468 17,228
Clayton Homes Inc 657 8,130 1,621 20,060
Fleetwood Enterprises Inc 32 1,038 313 10,153
Fluor Corp 113 3,976 614 21,605
Foster Wheeler Corp 42 525 316 3,950
Granite Construction Inc 0 -- 0 --
Kaufman & Broad Home Corp 49 1,103 298 6,705
Pulte Corp 90 2,166 354 8,518
Rouse Co 300 7,013 980 22,908
------------ ------------
TOTAL ENGINEERING &
CONSTRUCTION
- VALUE $ 32,305 $ 125,096
- COST $ 29,024 $ 141,065
ENTERTAINMENT & LEISURE
Percent of Net Assets 0.21% 0.59%
AMF Bowling Inc+ 0 $ -- 176 $ 803
Ascent Entertainment Group+ 249 2,708 258 2,806
Bally Total Fitness Holding
Corp+ 26 585 67 1,508
Boyd Gaming Corp+ 0 -- 176 726
Brunswick Corp 126 2,685 795 16,943
Callaway Golf Co 296 3,219 950 10,331
Circus Circus Entertainment
Inc+ 529 9,059 1,270 21,749
Coleman Co Inc+ 0 -- 176 1,650
Disney (Walt) Co 2,279 80,191 15,761 554,589
Gaylord Entertainment Co
Class A 105 2,618 92 2,294
Harrah's Entertainment Inc+ 48 801 712 11,882
Hasbro Inc 178 6,586 1,050 38,850
International Game
Technology Inc 597 11,343 1,244 23,636
Lakes Gaming Inc+ 100 913 88 803
Mattel Inc 321 8,466 1,949 51,405
Metro-Goldwyn-Mayer Inc+ 0 -- 503 5,250
MGM Grand Inc+ 145 5,461 128 4,820
Mirage Resorts Inc+ 217 4,232 1,351 26,345
Navigant International Inc+ 0 -- 81 456
Polaroid Corp 34 812 327 7,807
</TABLE>
116
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
8,024 $ 296,888 7,344 $ 271,727 14,552 $ 538,423
1,548 26,219 1,359 23,018 2,910 49,288
------------ ------------ ------------
$ 13,998,477 $ 12,921,466 $ 24,459,052
$ 12,398,013 $ 11,503,733 $ 24,313,591
0.08% 0.09% 0.10%
723 $ 35,563 684 $ 33,644 1,348 $ 66,304
1,070 39,389 999 36,776 1,977 72,777
2,888 35,739 2,812 34,799 5,638 69,769
608 19,722 565 18,327 1,200 38,925
1,409 49,579 1,276 44,899 2,708 95,287
717 8,963 678 8,475 1,299 16,238
355 8,720 -- -- 0 --
724 16,290 647 14,558 1,239 27,878
776 18,673 737 17,734 1,411 33,952
1,678 39,223 1,518 35,483 3,180 74,332
------------ ------------ ------------
$ 271,861 $ 244,695 $ 495,462
$ 302,236 $ 278,512 $ 604,425
0.90% 1.10% 1.26%
351 $ 1,601 268 $ 1,223 707 $ 3,226
351 3,817 354 3,850 600 6,525
162 3,645 104 2,340 197 4,433
0 -- 268 1,106 619 2,553
1,822 38,831 1,645 35,059 3,245 69,158
1,716 18,662 1,746 18,988 3,635 39,531
2,311 39,576 2,198 37,641 4,412 75,555
0 -- -- -- 177 1,659
36,923 1,299,228 34,124 1,200,737 70,223 2,470,971
123 3,067 153 3,815 221 5,511
1,762 29,403 1,652 27,568 3,353 55,952
2,328 86,136 2,202 81,474 4,401 162,836
2,004 38,076 2,783 52,877 5,781 109,838
153 1,396 112 1,022 199 1,816
4,628 122,064 4,125 108,797 9,523 251,168
903 9,425 613 6,398 1,617 16,877
253 9,563 258 9,752 691 26,104
3,265 63,668 3,059 59,651 5,814 113,372
168 945 144 810 322 1,811
796 19,005 742 17,715 1,447 34,547
</TABLE>
117
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Spelling Entertainment Group
Inc+ 0 $ -- 0 $ --
Tiffany & Co 226 12,924 440 25,163
Time Warner Inc 1,474 95,072 9,831 634,099
Topp Inc+ 512 2,240 0 --
------------ ------------
TOTAL ENTERTAINMENT &
LEISURE
- VALUE $ 249,915 $ 1,443,915
- COST $ 195,523 $ 954,031
ENVIRONMENTAL CONTROL
Percent of Net Assets 0.10% 0.15%
Allied Waste Industries Inc+ 500 $ 9,750 1,420 $ 27,690
Browning-Ferris Industries
Inc 167 5,261 1,308 41,202
Republic Industries Inc+ 2,000 24,500 4,816 58,996
Republic Services Inc Class
A+ 0 -- 0 --
Safety-Kleen Corp+ 87 1,213 379 5,282
U.S. Filter Corp+ 900 22,106 2,124 52,171
Waste Management Inc 1,012 49,462 3,834 187,387
------------ ------------
TOTAL ENVIRONMENTAL CONTROL
- VALUE $ 112,292 $ 372,728
- COST $ 119,489 $ 419,658
FOOD & RELATED
Percent of Net Assets 0.95% 1.82%
Albertson's Inc 225 $ 12,825 1,825 $ 104,025
American Stores Co 271 9,146 2,122 71,618
Archer-Daniels-Midland Co 705 10,663 4,589 69,409
Bestfoods 321 15,067 1,939 91,012
Bob Evans Farms Inc 468 10,091 317 6,835
Boston Chicken Inc+ 600 396 500 330
Brinker International Inc+ 956 27,664 971 28,098
Brown-Forman Corp Class B 64 4,220 518 34,156
Campbell Soup Co 480 19,290 2,934 117,910
CBRL Group Inc 249 4,669 901 16,894
CKE Restaurants Inc 220 5,844 484 12,856
ConAgra Inc 758 22,835 3,222 97,063
Corn Product International
Inc 60 1,410 260 6,110
Darden Restaurants Inc 90 1,980 1,024 22,528
Dave & Buster's Inc+ 0 -- 0 --
Dean Foods Co 224 8,162 475 17,308
Dole Food Inc 346 10,899 625 19,688
Earthgrains Co 56 1,376 257 6,313
Fleming Co Inc 2 15 256 1,888
Flowers Industries Inc 409 9,969 1,262 30,761
Food Lion Inc Class A 900 8,578 2,400 22,875
Food Lion Inc Class B 1,300 12,675 2,564 24,999
</TABLE>
118
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0 $ -- -- $ -- 353 $ 2,537
771 44,092 768 43,920 1,590 90,927
22,773 1,468,859 20,494 1,321,862 41,052 2,647,853
633 2,769 470 2,056 0 --
------------ ------------ ------------
$ 3,303,828 $ 3,038,661 $ 6,194,760
$ 2,086,567 $ 1,883,789 $ 4,141,492
0.21% 0.27% 0.34%
2,642 $ 51,519 2,500 $ 48,750 5,123 $ 99,898
3,078 96,957 2,876 90,594 6,104 192,275
7,789 95,415 7,322 89,695 18,698 229,050
0 -- -- -- 88 1,535
865 12,056 773 10,774 1,313 18,300
3,080 75,653 3,750 92,109 7,772 190,899
9,300 454,538 8,278 404,586 19,054 931,263
------------ ------------ ------------
$ 786,138 $ 736,508 $ 1,663,220
$ 840,723 $ 810,773 $ 1,793,218
2.62% 3.24% 3.89%
4,400 $ 250,800 4,063 $ 231,590 8,399 $ 478,742
4,999 168,716 4,560 153,899 9,375 316,405
10,827 163,758 10,062 152,187 20,567 311,075
4,705 220,841 4,106 192,724 9,519 446,797
659 14,210 421 9,078 1,104 23,805
700 462 700 462 1,100 726
1,740 50,351 1,045 30,240 1,970 57,006
1,230 81,103 1,140 75,169 2,270 149,677
7,177 288,426 6,541 262,865 14,929 599,958
1,600 30,000 1,492 27,975 3,113 58,368
968 25,713 786 20,878 1,749 46,458
7,827 235,788 7,023 211,567 16,046 483,385
610 14,335 508 11,938 1,208 28,388
2,479 54,538 2,351 51,722 4,803 105,665
90 1,772 -- -- 0 --
1,058 38,551 1,015 36,984 2,124 77,392
1,234 38,871 1,132 35,658 2,407 75,820
586 14,394 479 11,765 1,169 28,714
702 5,177 526 3,879 1,065 7,854
2,219 54,088 2,175 53,016 4,341 105,811
4,320 41,175 4,018 38,297 8,391 79,976
4,758 46,391 4,553 44,392 9,274 90,421
</TABLE>
119
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
General Mills Inc 155 $ 12,507 967 $ 78,025
General Nutrition Co Inc+ 300 4,013 1,244 16,639
Great Atlantic & Pacific Tea
Co 59 1,862 278 8,774
Hannaford Brothers Co 236 11,092 405 19,035
Heinz (H J) Co 315 17,148 2,488 135,441
Hershey Foods Corp 159 9,898 890 55,403
Hormel Foods Corp 300 10,800 616 22,176
Host Marriott Services Corp+ 240 1,680 211 1,477
IBP Inc 432 9,720 1,086 24,435
Imperial Sugar Co 0 -- 0 --
International Home Foods
Inc+ 200 3,125 352 5,500
International Multifoods
Corp 0 -- 0 --
Interstate Bakeries Corp 200 4,800 528 12,672
Keebler Foods Co+ 200 7,800 88 3,432
Kellogg Co 446 16,502 2,624 97,088
Koninklijke Ahold NV ADR
(Netherlands) 2,910 112,398 10,505 405,758
Kroger Co+ 201 13,002 1,691 109,387
Lancaster Colony Corp 207 5,693 431 11,853
Lance Inc 0 -- 0 --
Lone Star Steakhouse &
Saloon+ 300 2,719 352 3,190
Luby's Cafeteria Inc 45 638 193 2,738
McCormick & Co Inc 388 11,107 892 25,534
McDonald's Corp 729 61,965 5,300 450,499
Michael Foods Inc 0 -- 0 --
Nabisco Holdings Corp Class
A 200 8,875 176 7,810
NPC International Inc+ 0 -- 0 --
Outback Steakhouse Inc+ 200 8,775 528 23,166
Pioneer Hi Bred
International Inc 345 8,086 1,592 37,313
Planet Hollywood
International+ 0 -- 176 429
Quaker Oats Co 102 5,572 813 44,410
Ralston-Purina Group 295 7,947 2,148 57,862
Richfood Holdings Inc 0 -- 440 10,450
RJR Nabisco Holdings Corp 370 10,106 2,453 66,998
Ruby Tuesday Inc 384 7,152 176 3,278
Ryans Family Steak House+ 119 1,354 454 5,164
Safeway Inc+ 1,598 92,284 4,393 253,696
Sara Lee Corp 851 23,137 6,096 165,735
Sbarro Inc+ 0 -- 0 --
Shoney's Inc+ 97 224 325 752
Sizzler International Inc+ 254 540 0 --
Smucker (J M) Co Class A 305 7,244 0 --
Southland Corp+ 1,800 2,981 1,232 2,041
Starbucks Corp+ 500 26,438 1,068 56,471
Suiza Foods Corp+ 200 7,400 352 13,024
Super Value Inc 86 2,069 941 22,643
</TABLE>
120
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MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,440 $ 196,878 2,222 $ 179,287 5,227 $ 421,753
2,204 29,479 2,054 27,472 4,151 55,519
717 22,630 607 19,158 1,217 38,412
828 38,916 772 36,284 1,537 72,238
5,760 313,560 5,162 281,005 12,091 658,203
2,268 141,183 2,139 133,152 4,883 303,966
1,140 41,040 1,161 41,796 2,385 85,859
333 2,331 286 2,002 601 4,207
1,636 36,810 2,270 51,075 4,593 103,342
117 841 84 604 0 --
701 10,953 714 11,156 1,413 22,078
240 5,190 -- -- 0 --
1,052 25,248 1,071 25,704 2,120 50,880
175 6,825 893 34,827 1,766 68,873
6,546 242,202 5,870 217,189 13,618 503,865
20,963 809,699 20,424 788,895 40,394 1,560,205
4,160 269,100 3,604 233,133 8,544 552,689
881 24,228 857 23,568 1,759 48,373
419 6,914 -- -- 0 --
614 5,564 446 4,042 795 7,205
421 5,973 329 4,668 549 7,789
1,551 44,397 1,433 41,020 2,963 84,815
12,306 1,046,010 11,457 973,844 23,469 1,994,864
201 3,719 -- -- 0 --
263 11,671 268 11,893 530 23,519
328 4,715 253 3,637 0 --
877 38,478 893 39,180 1,855 81,387
3,920 91,875 3,464 81,188 7,973 186,866
438 1,068 357 870 530 1,292
2,120 115,805 2,010 109,796 4,684 255,863
5,111 137,678 4,420 119,064 10,539 283,893
0 -- 536 12,730 883 20,971
5,845 159,642 5,466 149,289 15,413 420,967
563 10,486 355 6,612 684 12,739
887 10,090 606 6,893 918 10,442
7,460 430,815 7,203 415,972 13,689 790,539
14,659 398,542 13,076 355,503 30,434 827,423
280 7,070 196 4,949 0 --
658 1,522 532 1,230 1,152 2,664
380 808 284 604 0 --
382 9,073 295 7,006 0 --
2,279 3,775 1,607 2,662 3,710 6,145
1,678 88,724 1,518 80,264 4,504 238,148
701 25,937 714 26,418 1,502 55,573
2,198 52,889 2,073 49,882 3,966 95,431
</TABLE>
121
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Sysco Corp 250 $ 7,063 2,229 $ 62,969
Tootsie Roll Industries 436 20,056 209 9,614
Tricon Global Restaurants+ 171 10,602 910 56,420
Tyson Food Inc Class A 491 10,066 883 18,102
Unilever NV (Netherlands) 3,712 268,887 13,512 978,775
Universal Corp 181 4,921 528 14,355
Universal Foods Corp 558 12,660 663 15,042
UST Inc 172 5,085 1,148 33,938
Vlasic Foods International
Inc+ 80 975 318 3,876
Weis Markets Inc 200 7,275 176 6,402
Wendy's International Inc 141 3,375 1,015 24,297
Whole Foods Market Inc+ 200 6,175 352 10,868
Winn-Dixie Stores Inc 146 6,397 1,149 50,341
Wrigley (W M) Jr Co 134 12,462 829 77,097
------------ ------------
TOTAL FOOD & RELATED
- VALUE $ 1,112,426 $ 4,425,070
- COST $ 823,388 $ 3,170,268
FURNITURE & APPLIANCES
Percent of Net Assets 0.05% 0.07%
Bassett Furniture Industries 25 $ 538 44 $ 946
Champion Enterprises Inc+ 0 -- 0 --
Ethan Allen Interiors Inc 200 9,000 352 15,840
Furniture Brands
International+ 0 -- 0 --
HON Industries Inc 206 4,893 751 17,836
Hussmann International Inc 32 452 385 5,438
Knoll Inc+ 0 -- 176 3,366
Leggett & Platt Inc 1,016 21,273 2,300 48,156
Maytag Corp 96 5,382 634 35,544
Miller (Herman) Inc 476 8,092 1,279 21,743
National Presto Industries
Inc 0 -- 0 --
Skyline Corp 20 585 39 1,141
Sunbeam Oster Co Inc+ 300 1,744 1,056 6,138
Whirlpool Corp 73 3,176 580 25,230
------------ ------------
TOTAL FURNITURE & APPLIANCES
- VALUE $ 55,135 $ 181,378
- COST $ 41,874 $ 179,463
HEALTHCARE
Percent of Net Assets 0.18% 0.24%
Apria Healthcare Group Inc+ 500 $ 4,469 528 $ 4,719
Beverly Enterprises Inc+ 575 2,983 1,360 7,055
Cardinal Health Inc 721 52,047 2,282 164,732
First Health Group Corp+ 468 7,488 962 15,392
HCR Manor Care Inc+ 101 2,260 851 19,041
</TABLE>
122
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
5,395 $ 152,409 4,843 $ 136,814 11,244 $ 317,642
573 26,358 390 17,940 975 44,850
2,385 147,870 2,212 137,143 5,172 320,663
1,337 27,409 1,226 25,133 4,809 98,584
27,000 1,955,813 26,329 1,907,206 52,563 3,807,531
911 24,768 887 24,115 1,912 51,982
817 18,536 873 19,806 1,449 32,874
2,973 87,889 2,665 78,784 6,301 186,272
729 8,885 649 7,910 1,592 19,403
263 9,567 268 9,749 618 22,480
2,244 53,716 2,153 51,537 4,386 104,989
701 21,643 625 19,297 1,325 40,909
2,663 116,673 2,490 109,093 5,026 220,201
1,884 175,212 1,679 156,146 3,924 364,931
------------ ------------ ------------
$ 9,596,561 $ 8,972,481 $ 19,164,751
$ 6,841,834 $ 6,445,669 $ 15,163,811
0.10% 0.12% 0.15%
175 $ 3,763 107 $ 2,301 182 $ 3,913
100 1,969 0 -- 88 1,733
701 31,545 714 32,130 1,413 63,584
0 -- 0 -- 88 1,881
1,299 30,851 1,168 27,740 2,535 60,205
898 12,684 712 10,057 1,353 19,111
263 5,030 268 5,126 530 10,136
3,648 76,380 3,454 72,318 9,239 193,441
1,489 83,477 1,344 75,348 3,059 171,494
2,376 40,392 2,246 38,182 4,540 77,179
102 3,774 72 2,664 0 --
195 5,704 70 2,047 117 3,422
1,928 11,207 1,875 10,898 3,975 23,105
1,430 62,205 1,288 56,028 2,529 110,010
------------ ------------ ------------
$ 368,981 $ 334,839 $ 739,214
$ 357,079 $ 334,628 $ 798,711
0.33% 0.40% 0.50%
701 $ 6,265 714 $ 6,381 1,148 $ 10,260
2,542 13,187 2,359 12,237 5,035 26,119
4,773 344,551 4,284 309,250 10,977 792,401
1,706 27,296 1,600 25,600 3,294 52,704
1,934 43,273 1,817 40,655 4,512 100,955
</TABLE>
123
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Healthsouth Corp+ 500 $ 5,813 3,260 $ 37,898
Idexx Laboratories Inc+ 400 8,950 440 9,845
Lincare Holdings Inc+ 200 7,125 440 15,675
McKesson HBOC Inc 655 44,540 2,012 136,816
Mid Atlantic Medical
Services+ 400 3,125 440 3,438
Morrison Health Care Inc 128 2,504 58 1,135
Novacare Inc+ 0 -- 0 --
Oakley Inc+ 600 4,988 528 4,389
Oxford Health Plans Inc+ 500 9,469 880 16,665
PacifiCare Health Systems
Inc Class A+ 112 7,378 62 4,084
PacifiCare Health Systems
Inc Class B+ 174 12,572 260 18,785
St Jude Medical Inc+ 132 3,317 661 16,608
Total Renal Care Holdings
Inc+ 0 -- 980 8,698
United Healthcare Corp 267 13,166 1,504 74,166
Universal Health Services
Inc+ 200 8,125 352 14,300
Vencor Inc+ 500 938 616 1,155
Ventas Inc 500 4,031 792 6,386
------------ ------------
TOTAL HEALTHCARE
- VALUE $ 205,288 $ 580,982
- COST $ 222,601 $ 618,609
HOSPITAL & MEDICAL SUPPLIES
Percent of Net Assets 0.30% 0.79%
American Oncology Resources+ 0 $ -- 176 $ 1,760
Arrow International Inc 0 -- 88 2,162
Bard (C R) Inc 43 2,424 435 24,523
Bausch & Lomb Inc 46 2,774 461 27,804
Baxter International Inc 305 21,464 1,972 138,780
Becton Dickinson & Co 178 5,963 1,674 56,079
Biomet Inc 112 4,109 776 28,470
Boston Scientific Corp+ 412 10,918 2,561 67,867
Columbia/HCA Healthcare Corp 650 11,619 4,984 89,089
Dentsply International Inc 400 10,200 616 15,708
Guidant Corp 257 14,649 2,088 119,016
Health Management Associates
Inc
Class A+ 1,262 16,327 2,595 33,573
Hillenbrand Industries Inc 300 12,563 528 22,110
Johnson & Johnson 1,303 111,243 8,915 761,117
Mallinckrodt Group Inc 77 2,382 559 17,294
Medpartners Inc+ 710 4,216 1,662 9,868
Medtronic Inc 861 60,808 3,899 275,367
Phycor Inc+ 300 1,631 704 3,828
Quorum Health Group Inc+ 50 463 584 5,402
Safeskin Corp+ 200 4,650 616 14,322
STERIS Corp+ 300 9,863 880 28,930
</TABLE>
124
<PAGE>
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
7,637 $ 88,780 7,124 $ 82,817 14,005 $ 162,807
701 15,685 536 11,993 883 19,757
701 24,973 714 25,436 1,700 60,562
4,157 282,676 3,653 248,403 8,479 576,571
614 4,797 446 3,484 1,148 8,969
188 3,678 118 2,308 228 4,460
854 1,815 634 1,347 0 --
1,052 8,745 714 5,935 1,060 8,811
1,665 31,531 1,696 32,118 3,268 61,887
402 26,482 121 7,971 214 14,097
549 39,665 546 39,449 1,055 76,223
1,510 37,939 1,424 35,778 2,825 70,977
100 888 0 -- 88 781
3,509 173,038 3,217 158,637 6,712 330,985
701 28,478 714 29,006 1,413 57,402
1,315 2,466 1,053 1,974 2,185 4,097
1,490 12,013 1,411 11,376 2,980 24,026
------------ ------------ ------------
$ 1,218,221 $ 1,092,155 $ 2,464,851
$ 1,140,083 $ 1,061,411 $ 2,454,934
1.18% 1.42% 1.81%
0 $ -- 179 $ 1,790 353 $ 3,530
0 -- 0 -- 177 4,348
993 55,980 987 55,642 1,951 109,987
1,025 61,820 965 58,202 1,815 109,466
4,650 327,244 4,066 286,144 9,543 671,588
4,072 136,412 3,490 116,915 8,335 279,222
1,831 67,175 1,647 60,424 3,780 138,678
6,347 168,196 5,689 150,758 13,148 348,421
11,571 206,832 10,797 192,995 22,144 395,823
1,052 26,826 1,071 27,311 2,296 58,547
4,874 277,818 4,284 244,187 10,051 572,906
4,264 55,166 3,976 51,440 11,490 148,651
789 33,039 804 33,668 2,473 103,556
21,566 1,841,197 19,349 1,651,920 44,600 3,807,724
1,318 40,776 1,190 36,816 2,367 73,228
3,436 20,401 3,528 20,948 6,944 41,230
8,889 627,786 8,117 573,262 18,554 1,310,375
1,446 7,863 1,473 8,009 3,136 17,052
1,064 9,842 848 7,844 1,943 17,973
1,052 24,459 1,071 24,901 2,208 51,336
1,678 55,164 1,607 52,830 3,268 107,435
</TABLE>
125
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Stryker Corp 448 $ 21,168 810 $ 38,273
Sybron International Corp+ 500 12,281 1,244 30,556
Tenet Healthcare Corp+ 334 6,576 2,402 47,289
Thermo Cardiosystems Inc+ 150 1,416 220 2,076
Uniphase Corp+ 0 -- 440 38,775
Waters Corp+ 0 -- 352 32,758
------------ ------------
TOTAL HOSPITAL & MEDICAL
SUPPLIES
- VALUE $ 349,707 $ 1,932,796
- COST $ 288,838 $ 1,472,858
HOUSEHOLD PRODUCTS
Percent of Net Assets 0.24% 0.68%
Alberto-Culver Co Class B 92 $ 2,208 455 $ 10,920
Avon Products Inc 180 7,493 1,759 73,218
Colgate-Palmolive Co 384 32,592 2,008 170,429
Dial Corp 536 15,645 1,226 35,784
Estee Lauder Co Class A 200 17,363 176 15,279
Gillette Co 1,137 60,972 7,352 394,251
International Specialty
Products Inc+ 0 -- 276 2,432
Kimberly-Clark Corp 546 25,799 3,614 170,762
NCH Corp 0 -- 0 --
Procter & Gamble Co 1,288 115,275 8,704 779,007
------------ ------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 277,347 $ 1,652,082
- COST $ 213,813 $ 1,087,728
INSURANCE
Percent of Net Assets 0.96% 2.15%
20th Century Industries 0 $ -- 1,244 $ 23,792
Aegon NV ADR (Netherlands) 22 2,302 291 30,414
Aetna Inc 154 11,406 1,135 84,061
AFLAC Corp 1,592 70,247 3,127 137,979
Alleghany Corp+ 2 362 102 18,462
Allied Zurich PLC ADR+ 2,120 62,593 8,258 243,816
Allmerica Financial Corp 124 6,619 730 38,964
Allstate Corp 924 34,650 6,312 236,700
American Bankers Insurance
Gro 0 -- 352 16,896
American Financial Group Inc 304 11,229 343 12,670
American General Corp 226 16,555 1,968 144,156
American International Group
Inc 1,232 140,370 8,150 928,590
American National Insurance
Co 100 7,525 88 6,622
Aon Corp 237 13,968 1,295 76,324
Argonaut Group Inc 0 -- 88 2,184
Axa-UAP ADR (France) 2,275 151,287 7,608 505,931
</TABLE>
126
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,387 $ 65,536 1,239 $ 58,543 3,886 $ 183,613
1,941 47,676 2,589 63,592 5,299 130,156
5,533 108,931 5,074 99,894 10,600 208,687
263 2,482 268 2,529 398 3,756
0 -- 0 -- 88 7,755
701 65,237 625 58,164 0 --
------------ ------------ ------------
$ 4,333,858 $ 3,938,728 $ 8,905,043
$ 3,171,732 $ 2,899,055 $ 7,041,754
1.08% 1.30% 1.68%
995 $ 23,880 972 $ 23,328 1,829 $ 43,896
4,311 179,445 3,780 157,342 8,769 365,009
4,769 404,769 4,191 355,710 9,708 823,966
1,977 57,704 2,614 76,296 5,306 154,868
351 30,471 625 54,258 1,237 107,386
17,758 952,273 15,873 851,189 36,847 1,975,919
363 3,199 268 2,362 618 5,446
8,768 414,288 7,852 371,006 18,126 856,452
109 5,505 79 3,990 0 --
21,193 1,896,774 19,122 1,711,418 44,076 3,944,801
------------ ------------ ------------
$ 3,968,308 $ 3,606,899 $ 8,277,743
$ 2,614,440 $ 2,417,761 $ 6,123,192
3.17% 3.92% 4.54%
2,116 $ 40,469 1,964 $ 37,562 88 $ 1,683
1,324 138,524 528 55,242 807 84,431
2,568 190,193 2,401 177,823 4,909 363,572
5,138 226,714 4,798 211,711 10,381 458,061
104 18,824 104 18,824 304 55,023
17,502 516,743 16,798 495,957 29,971 884,887
1,384 73,871 1,314 70,135 1,151 61,434
14,921 559,538 13,771 516,412 28,389 1,064,587
614 29,472 536 25,728 1,413 67,823
888 32,800 900 33,244 1,837 67,853
4,532 331,969 4,216 308,821 8,668 634,930
19,766 2,252,089 17,850 2,033,783 40,730 4,640,673
263 19,791 268 20,167 530 39,883
3,019 177,932 2,839 167,323 5,814 342,662
0 -- 179 4,441 265 6,575
15,497 1,030,551 14,778 982,736 29,460 1,959,089
</TABLE>
127
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Berkshire Hathaway Inc Class
A+ 0 $ -- 20 $ 142,200
Berkshire Hathaway Inc Class
B+ 9 21,411 3 7,137
Chubb Corp 195 11,651 1,204 71,939
CIGNA Corp 217 17,035 1,613 126,621
Cincinnati Financial Corp 120 4,208 1,218 42,706
CMAC Investment Corp 100 4,131 264 10,907
CNA Financial Corp+ 200 6,788 176 5,973
Conseco Inc 302 9,041 2,422 72,509
Equitable Co Inc 400 27,025 1,156 78,102
Everest Reinsurance Holdings
Inc 300 9,956 616 20,444
First American Financial
Corp 0 -- 616 14,438
Foundation Health Systems+ 391 3,128 1,443 11,544
Fremont General Corporation 400 7,900 804 15,879
Hartford Financial Services
Group 192 10,380 1,807 97,691
Highlands Insurance Group+ 37 502 67 909
Horace Mann Educators Corp 300 7,031 616 14,438
HSB Group Inc 345 12,765 370 13,690
Humana Inc+ 177 3,098 1,250 21,875
Jefferson-Pilot Corp 140 9,494 818 55,471
Leucadia National Corp+ 200 5,963 528 15,741
Lincoln National Corp 124 11,741 796 75,371
Loews Corp 135 10,555 933 72,949
Marsh & McLennan Companies
Inc 220 15,579 1,927 136,456
MBIA Inc 94 5,787 824 50,728
Mercury General Corp 200 6,975 352 12,276
Mony Group Inc 0 -- 0 --
Ohio Casualty Corp 200 8,075 352 14,212
Old Republic International
Corp 625 11,758 1,706 32,094
PMI Group Inc 100 4,313 352 15,180
Progressive Corp Ohio 75 9,638 525 67,463
Protection One Inc+ 0 -- 100 813
Protective Life Corp 300 10,350 792 27,324
Provident Co Inc 174 5,699 1,077 35,272
Providian Financial Corp 177 18,076 867 88,542
Reinsurance Group Of America 0 -- 352 22,682
Reliance Group Holdings 200 2,063 892 9,199
Reliastar Financial Corp 500 22,688 1,156 52,454
SAFECO Corp 156 6,269 1,143 45,934
St Paul Co 264 8,547 1,820 58,923
TIG Holdings Inc 200 3,200 616 9,856
Tokio Marine & Fire
Insurance Co ADR (Japan) 3,718 199,377 14,760 791,504
Torchmark Corp 142 4,722 1,132 37,639
Transamerica Corp 132 9,578 1,029 74,667
</TABLE>
128
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
40 $ 284,400 40 $ 284,399 80 $ 568,799
21 49,959 4 9,516 19 45,201
2,963 177,039 2,820 168,494 5,642 337,109
3,781 296,809 3,586 281,500 7,250 569,124
3,030 106,239 2,805 98,350 5,715 200,381
526 21,730 536 22,144 1,148 47,427
351 11,912 714 24,231 1,502 50,974
5,611 167,979 5,205 155,824 10,725 321,079
1,765 119,248 1,964 132,692 4,063 274,505
1,140 37,834 1,071 35,544 2,296 76,198
1,140 26,719 1,161 27,211 88 2,063
2,602 20,816 2,422 19,376 5,071 40,568
1,327 26,208 1,250 24,688 2,473 48,842
4,200 227,063 3,906 211,167 8,000 432,499
151 2,048 121 1,641 191 2,590
1,140 26,719 1,161 27,211 2,385 55,897
756 27,972 746 27,602 1,528 56,535
2,972 52,010 2,757 48,248 5,345 93,537
1,895 128,505 1,792 121,520 3,584 243,039
1,052 31,363 1,071 31,929 2,208 65,825
1,844 174,604 1,660 157,180 3,461 327,712
2,047 160,050 1,897 148,321 3,933 307,510
4,630 327,862 4,203 297,624 8,700 616,068
1,832 112,783 1,700 104,656 3,310 203,771
701 24,447 714 24,901 1,325 46,209
0 -- 0 -- 88 2,228
701 28,303 714 28,828 1,502 60,642
3,124 58,770 2,924 55,008 6,138 115,470
614 26,479 536 23,115 1,148 49,508
1,344 172,704 1,238 159,082 2,541 326,517
100 813 0 -- 0 --
1,402 48,369 1,339 46,196 2,826 97,496
2,417 79,157 2,282 74,736 4,611 151,009
2,218 226,513 2,019 206,189 4,830 493,213
0 -- 0 -- 0 --
1,678 17,304 1,518 15,654 3,356 34,609
1,765 80,087 1,696 76,956 4,681 212,399
2,507 100,750 2,378 95,566 4,768 191,613
4,268 138,177 3,880 125,615 8,118 262,819
1,139 18,224 1,071 17,136 2,385 38,160
34,186 1,833,224 33,869 1,816,224 67,208 3,604,028
2,506 83,325 2,403 79,900 4,694 156,075
2,308 167,474 2,078 150,784 4,309 312,671
</TABLE>
129
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Transatlantic Holdings Inc 126 $ 9,411 220 $ 16,431
Travelers Property Casualty 100 3,794 88 3,339
Trigon Healthcare Inc+ 0 -- 528 18,513
UICI+ 200 4,563 528 12,144
Unitrin Inc 200 13,075 352 23,012
UNUM Corp 152 6,802 1,091 48,822
Wellpoint Health Networks+ 100 7,888 440 34,705
------------ ------------
TOTAL INSURANCE
- VALUE $ 1,121,143 $ 5,236,279
- COST $ 861,280 $ 3,863,638
LODGING
Percent of Net Assets 0.03% 0.07%
Choice Hotels International
Inc+ 59 $ 804 444 $ 6,050
Extended Stay America Inc+ 400 3,500 880 7,700
Hilton Hotels Corp 264 4,175 1,761 27,846
Homestead Village Property
Inc+ 75 258 76 261
Marriott International 306 11,016 1,662 59,832
Park Place Entertainment
Corp+ 364 2,730 2,013 15,098
Promus Hotel Corp+ 441 15,518 1,084 38,143
Sodexho Marriott Services
Inc+ 44 1,029 221 5,166
Sunburst Hospitality Corp+ 19 91 147 707
------------ ------------
TOTAL LODGING
- VALUE $ 39,121 $ 160,803
- COST $ 42,566 $ 152,943
MACHINERY
Percent of Net Assets 0.21% 0.37%
AGCO Corp 300 $ 1,969 792 $ 5,198
AVX Corp 300 4,106 364 4,982
Black & Decker Corp 116 5,655 716 34,905
Case Corp 43 839 579 11,291
Caterpillar Inc 420 19,136 2,759 125,707
Cummins Engine Co Inc 25 1,025 288 11,808
Deere & Co 289 9,447 2,044 66,813
Federal Mogul Corp 396 19,478 616 30,300
Flowserve Corp 200 3,313 528 8,745
Harsco Corp 338 9,485 634 17,792
Ingersoll-Rand Co 172 8,170 1,330 63,175
Jacobs Engineering Group+ 0 -- 0 --
Kubota Corp ADR (Japan) 1,434 69,191 5,943 286,750
MagneTek Inc+ 0 -- 0 --
Makita Corp ADR (Japan) 1,420 14,023 5,593 55,231
McDermott International Inc 46 917 436 8,693
</TABLE>
130
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
466 $ 34,804 437 $ 32,638 936 $ 69,907
263 9,978 268 10,167 530 20,107
0 -- 0 -- 88 3,086
877 20,171 804 18,492 1,943 44,689
701 45,828 714 46,678 1,413 92,374
2,474 110,711 2,276 101,851 4,609 206,252
351 27,685 357 28,158 795 62,705
------------ ------------ ------------
$ 11,610,648 $ 10,854,851 $ 22,374,205
$ 8,163,591 $ 7,742,387 $ 17,121,744
0.09% 0.12% 0.15%
969 $ 13,203 720 $ 9,810 1,075 $ 14,647
1,665 14,569 1,518 13,283 3,445 30,144
4,192 66,286 3,563 56,340 8,603 136,034
88 303 101 347 166 571
4,035 145,260 3,616 130,175 8,322 299,591
4,361 32,708 3,584 26,880 8,493 63,697
1,665 58,587 2,222 78,187 4,456 156,795
515 12,038 441 10,308 1,181 27,606
322 1,550 240 1,155 358 1,723
------------ ------------ ------------
$ 344,504 $ 326,485 $ 730,808
$ 295,324 $ 303,452 $ 713,518
0.57% 0.71% 0.80%
1,490 $ 9,778 1,428 $ 9,371 3,180 $ 20,869
626 8,568 536 7,337 1,148 15,713
1,722 83,948 1,544 75,270 3,229 157,413
1,368 26,676 1,301 25,370 2,488 48,516
6,630 302,079 6,118 278,750 12,494 569,257
731 29,971 619 25,379 1,301 53,340
4,645 151,833 4,222 138,006 8,210 268,363
1,011 49,729 1,337 65,764 2,720 133,789
1,052 17,424 982 16,264 2,031 33,638
1,182 33,170 1,212 34,012 2,491 69,903
3,162 150,195 2,827 134,282 5,592 265,619
327 12,937 0 -- 0 --
13,676 659,867 13,585 655,475 26,860 1,295,994
322 3,502 0 -- 0 --
12,909 127,476 12,897 127,358 25,633 253,125
1,073 21,393 1,042 20,775 1,958 39,038
</TABLE>
131
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Milacron Inc 51 $ 908 337 $ 6,003
Nordson Corp 214 12,733 141 8,390
Pall Corp 113 2,394 942 19,959
Parker Hannifin Corp 138 5,123 837 31,074
Pentair Co 200 7,575 440 16,665
Presstek Inc+ 200 1,650 352 2,904
SPX Corp+ 33 1,885 143 8,169
Tecumseh Products Co Class A 241 11,869 167 8,225
Teleflex Inc 350 12,447 440 15,648
Thermo Electron Corp+ 169 2,334 1,216 16,796
UCAR International Inc+ 200 3,175 528 8,382
Weatherford International+ 480 8,160 1,222 20,774
York International Corp 302 10,948 458 16,603
------------ ------------
TOTAL MACHINERY
- VALUE $ 247,955 $ 910,982
- COST $ 320,371 $ 1,065,623
MANUFACTURING
Percent of Net Assets 0.06% 0.14%
Carlisle Corp 200 $ 8,275 352 $ 14,564
Tyco International Ltd 764 56,870 4,300 320,081
West Teleservices+ 0 -- 0 --
------------ ------------
TOTAL MANUFACTURING
- VALUE $ 65,145 $ 334,645
- COST $ 36,042 $ 205,150
METAL FABRICATORS
Percent of Net Assets 0.14% 0.31%
Alcan Aluminum Ltd 278 $ 6,747 1,890 $ 45,951
Allegheny Teledyne Inc 183 3,774 1,508 31,103
Armco Inc+ 111 555 953 4,765
Barrick Gold Corp 423 7,482 2,838 50,197
Battle Mountain Gold Co 247 834 1,807 6,099
Bethlehem Steel Corp+ 17 150 843 7,429
British Steel PLC ADR (UK) 618 12,167 2,172 42,761
Crane Co 120 3,293 607 16,655
Engelhard Corp 100 1,781 1,056 18,810
Freeport McMoRan Inc+ 116 1,095 997 9,409
Getchell Gold Corp+ 24 623 228 5,914
Howmet International Inc+ 0 -- 176 2,838
Kaydon Corp 0 -- 0 --
Laboratory Corp of America
Holdings+ 660 1,196 367 665
Mitsui & Co Ltd ADR (Japan) 660 71,610 2,475 268,538
Nucor Corp 121 5,392 699 31,149
Oregon Steel Mills Inc 0 -- 0 --
</TABLE>
132
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MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
687 $ 12,237 662 $ 11,792 1,255 $ 22,355
257 15,292 186 11,067 340 20,230
2,260 47,884 2,113 44,769 4,078 86,402
1,978 73,433 1,828 67,865 3,624 134,540
856 32,421 809 30,641 1,766 66,886
351 2,896 357 2,945 530 4,373
455 25,992 317 18,109 640 36,560
302 14,874 222 10,934 381 18,764
796 28,308 793 28,201 1,678 59,673
2,961 40,899 2,676 36,962 5,691 78,606
964 15,304 893 14,176 1,943 30,845
2,120 36,040 2,013 34,221 4,067 69,138
1,104 40,020 1,084 39,295 2,283 82,758
------------ ------------ ------------
$ 2,074,146 $ 1,964,390 $ 3,935,707
$ 2,512,503 $ 2,443,462 $ 4,954,063
0.22% 0.26% 0.34%
701 $ 29,004 714 $ 29,542 1,413 $ 58,462
10,233 761,719 9,307 692,789 21,371 1,590,803
0 -- 0 -- 177 1,748
------------ ------------ ------------
$ 790,723 $ 722,331 $ 1,651,013
$ 443,510 $ 436,847 $ 1,019,826
0.47% 0.59% 0.66%
4,330 $ 105,273 3,944 $ 95,889 7,602 $ 184,823
3,583 73,899 3,323 68,537 6,658 137,320
1,943 9,715 1,647 8,235 3,846 19,230
6,737 119,161 6,287 111,201 12,524 221,517
4,136 13,959 3,980 13,433 7,716 26,042
2,356 20,762 2,192 19,317 4,179 36,827
4,442 87,452 4,020 79,144 8,673 170,749
1,317 36,135 1,216 33,364 2,322 63,709
2,606 46,419 2,457 43,765 4,731 84,270
2,948 27,822 2,567 24,226 5,971 56,350
195 5,058 409 10,608 571 14,810
351 5,660 268 4,322 795 12,819
438 13,359 0 -- 0 --
914 1,657 610 1,106 1,181 2,141
5,822 631,687 5,734 622,138 11,395 1,236,357
1,646 73,350 1,455 64,838 2,932 130,656
262 2,505 178 1,702 0 --
</TABLE>
133
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Phelps Dodge Corp 66 $ 3,201 420 $ 20,370
Placer Dome Inc 263 2,877 1,964 21,481
Precision Castparts Corp 100 3,713 264 9,801
Reynolds Metals Co 49 2,095 576 24,624
Ryerson Tull Inc 207 3,778 381 6,953
SKF AB ADR (Sweden) 721 10,094 2,631 36,834
Steel Dynamics Inc+ 0 -- 264 4,158
Timken Co 42 743 470 8,313
USX--U.S. Steel Group 126 3,189 655 16,580
WMC Ltd ADR (Japan) 1,130 14,054 3,937 48,966
Worthington Industries Inc 77 977 752 9,541
------------ ------------
TOTAL METAL FABRICATORS
- VALUE $ 161,420 $ 749,904
- COST $ 232,909 $ 1,064,071
OFFICE EQUIPMENT & SUPPLIES
Percent of Net Assets 0.04% 0.05%
Ingram Micro Inc Class A+ 100 $ 2,200 176 $ 3,872
Ricoh Co Ltd ADR (Japan)+ 677 29,899 2,699 119,197
Standard Register Co 301 8,710 0 --
------------ ------------
TOTAL OFFICE EQUIPMENT &
SUPPLIES
- VALUE $ 40,809 $ 123,069
- COST $ 58,427 $ 184,789
PHARMACEUTICALS
Percent of Net Assets 1.58% 3.80%
Abbott Laboratories 1,503 $ 69,796 9,954 $ 462,238
Allergan Inc 55 4,483 479 39,039
ALZA Corp+ 87 4,562 564 29,575
American Home Products Corp 1,305 77,648 8,653 514,853
Amgen Inc+ 237 29,595 1,579 197,178
Astra AB ADR Series B
(Sweden) 4,498 87,991 16,204 316,991
Bergen Brunswig Corp Class A 650 15,884 1,411 34,481
Bristol-Myers Squibb Co 939 118,254 6,569 827,282
Centocor Inc+ 446 18,537 739 30,715
Covance Inc+ 90 2,481 511 14,084
Dura Pharmaceuticals Inc+ 0 -- 440 6,188
Forest Labs Inc Class A+ 464 22,939 739 36,534
Glaxo Holdings PLC ADR (UK) 3,560 228,062 12,692 813,080
ICN Pharmaceuticals Inc 400 8,750 1,073 23,472
Immunex Corp+ 100 14,100 264 37,356
Interneuron Pharmaceuticals
Co+ 0 -- 352 1,430
IVAX Corp+ 1,230 18,143 1,091 16,092
Lilly (Eli) & Co 1,104 104,534 7,291 690,366
</TABLE>
134
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,070 $ 51,895 1,028 $ 49,858 1,972 $ 95,641
4,539 49,645 4,233 46,298 8,593 93,985
526 19,528 547 20,307 1,060 39,353
1,274 54,464 1,191 50,915 2,424 103,625
1,198 21,864 1,132 20,659 2,171 39,621
5,177 72,478 5,064 70,896 10,261 143,653
526 8,285 357 5,623 883 13,907
1,120 19,810 1,073 18,979 2,049 36,242
1,629 41,234 1,489 37,690 2,787 70,545
7,849 97,622 7,695 95,707 15,318 190,517
1,745 22,140 1,624 20,604 3,192 40,498
------------ ------------ ------------
$ 1,732,838 $ 1,639,361 $ 3,265,207
$ 2,443,256 $ 2,320,924 $ 4,588,495
0.08% 0.10% 0.11%
351 $ 7,722 357 $ 7,854 618 $ 13,596
6,359 280,836 5,625 248,419 12,383 546,876
379 10,967 279 8,074 0 --
------------ ------------ ------------
$ 299,525 $ 264,347 $ 560,472
$ 430,550 $ 377,770 $ 788,206
5.73% 7.01% 8.76%
24,316 $ 1,129,174 21,869 $ 1,015,541 50,437 $ 2,342,167
1,169 95,274 1,093 89,079 2,178 177,506
1,418 74,356 1,251 65,599 2,961 155,266
21,068 1,253,546 19,080 1,135,259 43,831 2,607,943
4,045 505,119 3,606 450,298 8,458 1,056,192
32,190 629,717 31,444 615,122 62,718 1,226,920
2,004 48,973 2,634 64,368 5,211 127,343
15,867 1,998,250 14,280 1,798,386 32,966 4,151,655
1,311 54,488 1,220 50,706 3,551 147,587
902 24,861 783 21,581 1,454 40,076
877 12,333 714 10,041 1,502 21,122
1,255 62,044 1,225 60,561 3,904 193,003
25,331 1,622,767 24,736 1,584,649 49,292 3,157,768
1,907 41,716 1,839 40,228 3,763 82,315
438 61,977 446 63,109 883 124,944
0 -- 536 2,178 795 3,230
2,036 30,031 1,753 25,857 3,529 52,053
17,648 1,671,045 15,792 1,495,304 36,520 3,457,987
</TABLE>
135
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Marshall & Ilsley Corp 558 $ 31,248 1,279 $ 71,624
Merck & Co Inc 2,266 185,245 15,542 1,270,558
Millipore Corp 42 1,171 351 9,784
Mylan Laboratories 703 19,201 1,482 40,477
Novo Nordisk A/S ADR
(Denmark) 2,492 142,355 8,861 506,184
Omnicare Inc 400 9,575 1,244 29,778
Perrigo Co+ 812 6,800 484 4,054
Pfizer Inc 1,335 176,136 8,444 1,114,079
Pharmacia and Upjohn Inc 517 28,177 3,860 210,370
PharMerica Inc+ 35 197 297 1,671
Rexall Sundown Inc+ 100 1,431 628 8,988
Schering-Plough Corp 1,481 82,842 9,718 543,600
Schweitzer-Mauduit
International Inc 20 235 81 952
Sepracor Inc+ 0 -- 352 43,912
SmithKline Beecham PLC ADR
(UK) 2,145 152,562 7,895 561,531
SouthTrust Corp 906 36,297 1,922 77,000
ThermoLase Corp+ 0 -- 88 286
Warner Lambert Co 757 52,280 5,436 375,424
Watson Pharmaceutical Inc+ 500 24,156 980 47,346
Xoma Ltd+ 188 658 0 --
Zeneca Group PLC ADR (UK) 1,704 69,971 6,131 251,754
------------ ------------
TOTAL PHARMACEUTICALS
- VALUE $ 1,846,296 $ 9,260,326
- COST $ 1,112,569 $ 5,055,394
PUBLISHING
Percent of Net Assets 0.40% 0.66%
American Greetings Corp
Class A 123 $ 2,914 580 $ 13,739
Belo (A H) Corp 412 7,468 1,050 19,031
Central Newspapers Class A 200 7,000 176 6,160
Chris-Craft Industries Inc+ 119 5,043 236 10,000
Comcast Corp Class A 290 20,572 2,484 176,209
Donnelley (R R) & Sons Co 139 4,761 1,045 35,791
Dow Jones & Co Inc 94 4,418 748 35,156
E.W. Scripps Co 200 8,200 264 10,824
Elsevier NV ADR
(Netherlands) 3,727 120,195 13,661 440,566
Ennis Business Forms Inc 0 -- 0 --
Gannett Co Inc 408 25,908 1,880 119,380
Gibson Greetings Inc+ 0 -- 0 --
Golden Books Family
Entertainment Inc+ 234 110 0 --
Harland (John H) Co 55 739 218 2,929
Harte-Hanks Communications
Inc 200 5,175 528 13,662
Houghton Mifflin Co 304 13,072 211 9,073
Interpublic Group Co Inc 83 6,209 874 65,386
Knight-Ridder Inc 124 6,223 662 33,224
</TABLE>
136
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,031 $ 113,736 1,860 $ 104,160 5,582 $ 312,591
38,090 3,113,858 34,250 2,799,937 78,972 6,455,960
788 21,966 686 19,122 1,718 47,889
2,348 64,130 2,256 61,617 6,229 170,129
17,736 1,013,169 17,364 991,918 34,507 1,971,211
1,765 42,250 2,143 51,298 4,328 103,601
1,097 9,187 752 6,298 1,484 12,429
20,705 2,731,766 18,653 2,461,029 43,110 5,687,825
9,119 496,986 8,449 460,470 17,453 951,188
837 4,708 707 3,977 1,366 7,684
1,064 15,229 893 12,781 1,943 27,809
23,556 1,317,664 21,163 1,183,804 48,806 2,730,085
188 2,209 157 1,845 310 3,643
0 -- 536 66,866 0 --
15,771 1,121,712 15,418 1,096,604 30,717 2,184,746
2,997 120,067 2,839 113,737 7,774 311,445
0 -- 0 -- 265 861
13,255 915,423 11,850 818,390 27,333 1,887,684
1,590 76,817 1,429 69,039 3,975 192,041
169 592 172 602 0 --
12,197 500,839 11,993 492,462 23,804 977,451
------------ ------------ ------------
$ 20,997,979 $ 19,403,822 $ 43,161,349
$ 10,927,873 $ 10,320,396 $ 25,275,069
0.91% 1.11% 1.33%
1,311 $ 31,054 1,177 $ 27,880 2,455 $ 58,152
1,878 34,039 1,775 32,172 3,692 66,917
351 12,285 893 31,255 1,943 68,004
444 18,814 307 13,009 205 8,687
5,870 416,403 5,297 375,755 12,340 875,368
2,523 86,413 2,313 79,220 4,750 162,686
1,700 79,900 1,589 74,683 3,115 146,404
614 25,174 625 25,625 1,237 50,717
27,206 877,394 26,521 855,301 52,906 1,706,218
216 1,931 0 -- 0 --
4,471 283,909 3,996 253,745 9,169 582,231
214 1,772 0 -- 0 --
274 129 208 98 0 --
543 7,297 550 7,391 897 12,053
1,052 27,221 982 25,409 2,120 54,854
403 17,329 277 11,911 786 33,798
2,135 159,725 1,978 147,978 4,640 347,129
1,394 69,961 1,371 68,807 2,588 129,884
</TABLE>
137
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Lee Enterprises Inc 498 $ 13,757 0 $ --
Liberty Media Group Class A+ 1,853 99,829 3,812 205,372
Marvel Entertainment Group
Inc+ 0 -- 200 30
McGraw-Hill Inc 156 17,072 800 87,550
Media General Inc Class A 280 14,000 194 9,700
Meredith Corp 82 2,768 404 13,635
Moore Corp Ltd 44 462 738 7,749
New York Times Co Class A 162 5,022 1,463 45,353
News Corporation Ltd 874 24,800 3,280 93,070
Primedia Inc+ 0 -- 276 3,674
Readers Digest Association
Class A 400 13,600 1,156 39,304
Readers Digest Association
Class B 200 6,463 264 8,531
Scholastic Inc+ 200 9,850 176 8,668
Times Mirror Co Class A 117 6,530 524 29,246
Washington Post Co Class B 27 14,847 88 48,389
Workflow Management Inc+ 0 -- 107 756
Ziff Davis Inc+ 0 -- 352 5,918
------------ ------------
TOTAL PUBLISHING
- VALUE $ 467,007 $ 1,598,075
- COST $ 349,016 $ 1,173,497
REAL ESTATE
Percent of Net Assets 0.23% 0.29%
AMB Property Corp REIT 0 $ -- 980 $ 20,580
Apartment Investment &
Management Co Class A REIT 0 -- 616 24,101
Archstone Communities Trust
REIT 600 11,738 1,156 22,614
Arden Realty Group Inc REIT 200 4,675 892 20,851
Boston Properties Inc REIT 200 6,463 528 17,061
Camden Property Trust REIT 0 -- 528 12,936
CarrAmercia Realty Corp REIT 300 6,450 440 9,460
Castle & Cooke Inc+ 215 3,333 120 1,860
Catellus Development Corp+ 300 4,331 1,068 15,419
Chicago Title Corp 106 3,717 181 6,346
Cornerstone Properties Inc
REIT 400 6,050 1,420 21,478
Crestline Capital Corp REIT+ 100 1,275 185 2,359
Echelon International Corp+ 68 1,411 47 975
Equity Office Properties
Trust REIT 1,200 30,900 2,971 76,503
Equity Residential
Properties Trust REIT 500 20,500 1,332 54,612
Federal Realty Investment
Trust 0 -- 0 --
Fel Cor Lodging Trust Inc
REIT 300 7,088 892 21,074
Franchise Finance Corp REIT 0 -- 88 1,936
General Growth Properties
Inc 0 -- 0 --
Health Care Property
Investors Inc REIT 300 8,813 264 7,755
Hospitalities Properties
Trust 0 -- 0 --
</TABLE>
138
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
621 $ 17,155 455 $ 12,569 0 $ --
6,105 328,907 5,666 305,255 12,494 673,113
1,400 210 200 30 600 90
1,830 200,271 1,627 178,054 3,395 371,539
359 17,950 259 12,950 503 25,150
921 31,084 808 27,270 1,701 57,408
1,538 16,149 1,481 15,550 3,019 31,699
3,427 106,237 3,174 98,394 6,411 198,740
6,604 187,389 6,325 179,471 12,875 365,327
351 4,673 268 3,568 795 10,583
2,028 68,952 1,875 63,750 3,798 129,131
263 8,498 268 8,660 530 17,126
175 8,619 179 8,816 353 17,385
1,284 71,663 1,149 64,129 2,781 155,214
158 86,880 119 65,435 287 157,813
223 1,575 192 1,356 429 3,030
614 10,323 625 10,508 1,413 23,756
------------ ------------ ------------
$ 3,317,285 $ 3,086,004 $ 6,540,206
$ 2,421,277 $ 2,236,767 $ 4,831,953
0.31% 0.42% 0.48%
363 $ 7,623 268 $ 5,628 707 $ 14,847
1,052 41,160 1,071 41,903 88 3,443
1,853 36,249 2,768 54,149 5,741 112,307
1,502 35,109 1,339 31,299 2,826 66,057
1,052 33,993 1,071 34,607 2,120 68,502
0 -- 0 -- 88 2,156
1,402 30,143 1,339 28,789 2,826 60,758
294 4,557 198 3,069 301 4,666
1,941 28,023 1,875 27,070 3,798 54,833
361 12,658 725 25,420 717 25,140
2,554 38,629 2,500 37,813 5,123 77,484
298 3,800 428 5,457 892 11,373
84 1,743 62 1,287 57 1,183
4,815 123,986 5,254 135,290 10,835 279,000
2,291 93,931 2,232 91,512 4,593 188,312
0 -- 0 -- 353 7,788
1,590 37,564 1,429 33,760 3,003 70,945
0 -- 0 -- 265 5,830
0 -- 0 -- 88 2,970
351 10,311 446 13,101 618 18,154
0 -- 0 -- 88 2,266
</TABLE>
139
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Host Marriott Corp+ 1,087 $ 11,753 2,108 $ 22,793
HRPT Properties Trust REIT 700 9,581 1,596 21,845
Kimco Realty Corp REIT 300 11,381 484 18,362
Liberty Property Trust REIT 0 -- 892 19,513
Mack-Cali Realty Corp REIT 300 8,681 792 22,919
MAXXAM Inc+ 0 -- 0 --
Meditrust Corp REIT 602 7,375 1,226 15,018
New Plan Excel Realty Trust
REIT 400 8,300 792 16,434
Patriot American Hospitality
Inc REIT+ 751 4,084 1,911 10,391
Post Properties Inc REIT 0 -- 440 15,703
Prison Realty Corp REIT 262 5,224 924 18,422
Public Storage Inc REIT 400 10,200 892 22,746
Simon Property Group Inc
REIT 400 10,175 1,156 29,406
United Dominion Realty Trust
Inc Reit 400 3,950 1,508 14,892
Vornado Operating Inc+ 20 138 44 303
Vornado Realty Trust REIT 400 13,750 880 30,250
Weingarten Realty Investors
REIT 200 8,388 176 7,381
Westfield America Inc REIT 0 -- 176 3,102
Worldwide Inc REIT 1,064 32,984 2,182 67,642
------------ ------------
TOTAL REAL ESTATE
- VALUE $ 262,708 $ 695,042
- COST $ 308,669 $ 816,084
RETAIL & RELATED
Percent of Net Assets 1.10% 2.43%
Abercrombie & Fitch Co+ 6 $ 456 642 $ 48,792
Amazon.com Inc+ 300 38,438 528 67,650
Ann Taylor Stores Inc+ 247 9,340 172 6,504
AutoZone Inc+ 226 7,910 1,101 38,535
Barnes & Noble+ 400 11,825 616 18,211
Bed Bath & Beyond Inc+ 500 14,719 1,420 41,801
Benetton SpA ADR (Italy) 2,207 72,003 8,062 263,023
Best Buy Co Inc+ 500 46,375 880 81,620
BJ's Wholesale Club Inc+ 365 15,900 440 19,168
Borders Group Inc+ 300 4,144 980 13,536
CDW Computer Centers Inc+ 0 -- 88 6,127
Charming Shoppes Inc+ 59 199 0 --
Circuit City Stores Inc 127 6,890 744 40,362
Coles Myer Ltd ADR
(Australia) 1,114 47,206 3,932 166,619
CompUSA Inc+ 400 4,200 1,332 13,986
Consolidated Stores Corp+ 58 1,461 828 20,855
Corporate Express Inc+ 550 2,956 1,200 6,450
Costco Co Inc+ 285 22,889 1,676 134,604
CVS Corp 314 16,642 2,651 140,503
Dayton-Hudson Corp 373 23,336 2,898 181,306
</TABLE>
140
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
3,339 $ 36,103 4,658 $ 50,365 9,696 $ 104,837
3,519 48,166 3,393 46,442 6,889 94,292
745 28,263 1,250 47,422 2,473 93,818
100 2,188 0 -- 88 1,925
1,402 40,570 1,429 41,352 2,915 84,352
112 6,552 0 -- 0 --
2,686 32,903 2,329 28,530 5,401 66,161
1,490 30,918 1,429 29,652 2,915 60,485
3,424 18,618 3,187 17,329 6,791 36,926
0 -- 0 -- 88 3,141
1,687 33,635 1,640 32,698 3,400 67,787
1,327 33,839 1,964 50,082 4,063 103,606
2,028 51,587 1,875 47,695 3,975 101,113
2,730 26,959 2,589 25,566 5,388 53,206
90 619 80 550 159 1,093
1,678 57,681 1,607 55,241 3,268 112,337
351 14,720 357 14,972 795 33,340
351 6,186 268 4,724 707 12,461
3,490 108,190 3,297 102,207 8,793 272,582
------------ ------------ ------------
$ 1,117,176 $ 1,164,981 $ 2,381,476
$ 1,354,409 $ 1,456,991 $ 2,995,001
3.71% 4.50% 5.50%
1,289 $ 97,964 1,217 $ 92,492 188 $ 14,288
789 101,091 804 103,013 1,855 237,671
308 11,646 226 8,546 209 7,903
2,721 95,235 2,613 91,455 5,173 181,054
1,227 36,273 1,161 34,322 2,473 73,107
2,379 70,032 2,232 65,705 4,593 135,205
16,032 523,044 15,716 512,733 31,276 1,020,378
1,402 130,036 1,339 124,192 4,063 376,842
436 18,993 328 14,289 88 3,834
1,765 24,379 1,696 23,426 3,445 47,584
175 12,184 179 12,463 353 24,578
2,005 6,767 1,446 4,880 2,971 10,027
1,848 100,254 1,663 90,218 3,275 177,668
7,865 333,279 7,659 324,549 15,449 654,650
2,291 24,056 2,143 22,502 4,416 46,368
1,939 48,839 1,765 44,456 3,602 90,724
2,247 12,078 2,009 10,798 4,416 23,736
3,943 316,672 3,559 285,831 7,376 592,384
6,283 $332,999 5,558 294,573 13,020 690,059
7,111 444,882 6,391 399,836 14,755 923,109
</TABLE>
141
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Department 56 Inc+ 200 $ 6,638 176 $ 5,841
Dillards Inc Class A 118 2,935 898 22,338
Dollar General Corp 473 14,160 1,121 33,560
Dollar Tree Stores Inc+ 200 8,000 484 19,360
Eastman Kodak Co 343 22,702 2,682 177,515
Enesco Group Inc 220 3,644 150 2,484
Ensco International Inc 600 5,325 1,948 17,289
Family Dollar Stores Inc 660 13,200 1,807 36,140
Federated Department Stores
Inc+ 179 6,813 1,563 59,492
Fingerhut Co+ 405 9,948 352 8,646
Footstar Inc+ 46 1,173 216 5,508
Fred Myer Inc+ 180 11,565 1,230 79,028
Gap Inc 612 39,589 3,832 247,883
Global DirectMail Corp+ 200 3,288 176 2,893
Hancock Fabrics Inc 0 -- 0 --
Harcourt General Inc 79 3,619 557 25,518
Heilig Meyers Co 524 3,406 361 2,347
Home Depot Inc 1,486 88,695 9,912 591,622
Homebase Inc+ 365 1,893 0 --
Ito Yokado Co Ltd ADR
(Japan) 1,720 101,909 6,410 379,793
Jones Apparel Group Inc+ 300 8,381 1,068 29,837
Jostens Inc 77 1,805 265 6,211
K Mart Corp+ 584 10,220 3,762 65,835
Kohls Corp+ 547 37,743 975 67,275
Limited Inc 197 6,994 1,764 62,622
Longs Drug Stores Corp 66 2,388 324 11,725
Lowe's Co Inc 414 24,555 2,690 159,551
May Department Stores Co 214 12,680 1,773 105,050
Michaels Stores Inc+ 0 -- 0 --
Micro Warehouse Inc+ 300 5,925 264 5,214
Midas Inc 10 316 128 4,048
Neiman Marcus Group Inc+ 100 2,588 264 6,831
Newell Co 194 8,245 1,055 44,838
Nordstrom Inc 224 9,016 1,080 43,470
Office Depot Inc+ 1,338 47,750 2,950 105,278
Officemax Inc+ 700 5,425 1,816 14,074
Payless ShoeSource Inc+ 217 11,908 362 19,865
Penney (J C) Co Inc 266 9,609 1,913 69,107
PetSmart Inc+ 1,200 9,450 1,144 9,009
Pier 1 Imports Inc 550 4,744 1,552 13,386
Rite Aid Corp 238 9,847 2,018 83,495
Ross Stores Inc 300 13,725 528 24,156
Ruddick Corp 0 -- 0 --
Saks Inc+ 564 20,269 1,445 51,930
</TABLE>
142
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
263 $ 8,728 179 $ 5,941 530 $ 17,589
2,035 50,621 1,858 46,218 3,795 94,400
2,952 88,376 2,605 77,987 6,352 190,162
920 36,800 937 37,480 1,943 77,719
6,176 408,774 5,566 368,399 11,026 729,782
262 4,339 191 3,163 186 3,081
3,519 31,231 3,393 30,113 6,889 61,139
3,317 66,340 3,107 62,140 6,433 128,659
3,836 146,008 3,452 131,391 7,181 273,326
626 15,376 454 11,151 247 6,067
457 11,654 341 8,695 578 14,739
2,800 179,900 2,580 165,764 5,265 338,275
9,284 600,559 8,364 541,046 19,240 1,244,587
263 4,323 179 2,942 353 5,802
300 2,081 0 -- 0 --
1,294 59,281 1,196 54,792 2,328 106,650
731 4,752 486 3,159 1,148 7,462
23,977 1,431,127 21,397 1,277,133 49,601 2,960,559
436 2,262 328 1,702 0 --
14,810 877,493 14,712 871,685 29,104 1,724,411
1,853 51,768 1,786 49,896 3,621 101,161
690 16,172 572 13,406 1,368 32,062
8,852 154,910 8,327 145,722 16,901 295,767
2,523 174,087 2,346 161,873 5,331 367,838
4,092 145,266 3,797 134,793 7,821 277,644
679 24,571 666 24,101 1,296 46,899
6,333 375,626 5,889 349,290 12,043 714,299
4,165 246,776 3,854 228,348 7,897 467,896
0 -- 0 -- 177 3,031
526 10,389 357 7,051 618 12,206
299 9,456 237 7,495 450 14,231
526 13,610 536 13,869 1,060 27,428
2,614 111,095 2,306 98,005 5,455 231,837
2,701 108,715 2,411 97,043 5,112 205,757
4,839 172,692 4,453 158,915 11,870 423,610
3,343 25,908 3,170 24,568 6,492 50,313
1,002 54,985 996 54,656 2,035 111,670
4,536 163,863 4,177 150,893 8,645 312,300
1,928 15,183 1,428 11,246 2,650 20,869
2,730 23,546 2,589 22,330 5,299 45,704
4,697 194,338 4,324 178,904 8,831 365,382
1,315 60,161 1,250 57,188 2,561 117,165
626 11,542 468 8,629 0 --
2,532 90,994 2,477 89,017 5,077 182,454
</TABLE>
143
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MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (Continued)
School Specialty Inc+ 0 $ -- 90 $ 1,986
Sears Roebuck & Co 458 18,606 3,230 131,219
Service Merchandise Co+ 771 482 0 --
Sherwin Williams Co 181 4,355 1,304 31,378
Staples Inc+ 1,741 51,196 2,787 81,955
Sunglass Hut International
Inc+ 600 5,813 440 4,263
Talbots Inc 200 4,838 176 4,257
Tandy Corp 116 6,453 755 41,997
Tech Data Corp+ 300 5,100 616 10,472
TJX Companies Inc 176 5,027 2,196 62,723
Toys R Us Inc+ 281 3,969 1,961 27,699
U.S. Office Products Co 0 -- 203 1,000
Venator Group Inc+ 187 923 1,047 5,170
Walgreen Co 910 29,120 6,528 208,896
WalMart Stores Inc 2,248 194,170 14,833 1,281,199
Williams-Sonoma Inc+ 0 -- 0 --
------------ ------------
TOTAL RETAIL & RELATED
- VALUE $ 1,289,026 $ 5,923,930
- COST $ 865,661 $ 3,554,461
SERVICES
Percent of Net Assets 0.03% 0.05%
Block (H R) Inc 105 $ 4,764 788 $ 35,756
CMS Energy Corp 0 -- 0 --
DeVry Inc+ 0 -- 0 --
Public Service Enterprise
Group 208 7,904 1,790 68,020
Service Corp International 229 3,521 1,958 30,104
Sotheby's Holdings Inc 611 17,108 0 --
------------ ------------
TOTAL SERVICES
- VALUE $ 33,297 $ 133,880
- COST $ 25,633 $ 136,473
SHIPPING
Percent of Net Assets 0.00% 0.00%
Halter Marine Group Inc+ 273 $ 1,092 261 $ 1,044
------------ ------------
TOTAL SHIPPING
- VALUE $ 1,092 $ 1,044
- COST $ 3,161 $ 3,083
TELECOMMUNICATIONS
Percent of Net Assets 2.57% 5.68%
ADC Telecommunications+ 772 $ 31,266 1,561 $ 63,221
Adtran Inc+ 100 2,050 176 3,608
Advanced Fibre
Communication+ 300 2,438 616 5,005
Airtouch Communications+ 645 58,735 3,823 348,132
</TABLE>
144
<PAGE>
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
187 $ 4,126 160 $ 3,530 358 $ 7,898
7,432 301,925 6,726 273,243 13,435 545,796
1,328 830 991 619 0 --
3,152 75,845 2,843 68,410 5,805 139,682
6,686 196,611 6,090 179,083 14,727 433,066
877 8,496 625 6,055 1,148 11,121
0 -- 179 4,330 353 8,538
1,787 99,402 1,707 94,952 3,363 187,066
1,052 17,884 1,071 18,207 2,208 37,536
5,283 150,896 4,564 130,358 10,927 312,101
4,730 66,811 4,337 61,260 9,243 130,556
421 2,079 360 1,779 806 3,978
2,578 12,729 2,311 11,411 4,309 21,276
16,034 513,088 14,362 459,583 33,240 1,063,679
36,030 3,112,091 32,430 2,801,140 74,674 6,449,966
0 -- 0 -- 442 15,111
------------ ------------ ------------
$ 13,589,194 $ 12,462,378 $ 27,110,471
$ 7,834,248 $ 7,279,111 $ 16,752,337
0.11% 0.11% 0.12%
1,849 $ 83,898 1,733 $ 78,635 3,500 $ 158,812
1,152 47,664 0 -- 0 --
100 2,513 0 -- 88 2,211
4,209 159,942 3,836 145,767 7,759 294,841
4,687 72,063 4,271 65,667 8,849 136,052
743 20,804 556 15,568 0 --
------------ ------------ ------------
$ 386,884 $ 305,637 $ 591,916
$ 358,220 $ 301,962 $ 627,807
0.00% 0.00% 0.00%
340 $ 1,360 307 $ 1,228 584 $ 2,336
------------ ------------ ------------
$ 1,360 $ 1,228 $ 2,336
$ 3,987 $ 3,577 $ 6,892
8.31% 10.24% 12.18%
2,463 $ 99,752 2,336 $ 94,608 6,730 $ 272,564
175 3,588 268 5,494 618 12,669
1,227 9,969 1,161 9,433 2,473 20,093
9,236 841,053 8,187 745,528 19,000 1,730,186
</TABLE>
145
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Alcatel Alsthom Compagnie
Generale d'electricite ADR
(France) 3,689 $ 80,005 13,392 $ 290,439
Aliant Communications Inc 0 -- 0 --
Alltel Corp 249 14,909 2,072 124,061
Ameritech Corp 1,199 78,385 7,222 472,137
Andrew Corp+ 90 1,361 717 10,845
Ascend Communications Inc+ 235 18,080 1,412 108,636
Aspect Telecommunication
Corp+ 0 -- 540 4,151
AT & T Corp 2,246 184,452 15,047 1,235,734
Bell Atlantic Corp 1,954 112,232 10,335 593,616
BellSouth Corp 2,100 97,124 15,179 702,028
British Telecommunications
PLC ADR (UK) 2,164 380,052 7,923 1,391,476
Century Telephone Enterprise 0 -- 0 --
Ciena Corp+ 100 2,788 628 17,506
Comsat Corp 510 14,918 704 20,592
Cox Communications Inc Class
A+ 413 29,220 769 54,407
Deutsche Telekom Ag ADR
(Germany) 4,626 211,060 16,858 769,145
DSP Communications Inc+ 0 -- 440 6,600
Ericsson L M Telephone ADR
(Sweden) 2,532 65,832 9,126 237,276
Federal Signal Corp 498 11,672 431 10,102
Frontier Corp 250 8,984 1,175 42,227
Glenayre Technologies Inc+ 650 2,295 572 2,020
Global TeleSystems Group
Inc+ 200 11,075 440 24,420
GTE Corp 1,256 81,482 6,413 416,042
Hong Kong Telecommunications
Ltd ADR (Hong Kong) 11,724 197,106 42,354 712,075
ICG Communications Inc+ 200 3,750 528 9,933
Intermedia Communications
Inc+ 0 -- 100 1,813
IXC Communications Inc+ 0 -- 176 9,152
Leap Wireless International
Inc+ 100 594 198 1,176
Loral Space &
Communications+ 1,042 18,756 2,626 47,268
Lucent Technologies Inc 1,313 133,351 8,643 877,804
MCI WorldCom Inc+ 2,154 177,704 13,480 1,112,099
McLeod Inc Class A+ 200 7,700 440 16,940
Network Appliance Inc+ 0 -- 704 29,568
NEXTEL Communications Class
A+ 278 8,357 2,205 66,288
Nippon Telegraph & Telegraph
ADR (Japan) 1,824 73,986 7,069 286,736
Nokia Corp 556 75,408 1,988 269,623
Northern Telecom Ltd 833 48,366 4,347 252,398
NTL Inc+ 0 -- 528 41,019
Omnipoint Corp+ 200 2,325 264 3,069
Paging Network Inc+ 500 2,000 616 2,464
Pairgain Technologies Inc+ 300 2,588 616 5,313
</TABLE>
146
<PAGE>
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
26,784 $ 580,878 26,080 $ 565,609 52,153 $ 1,131,067
430 17,146 0 -- 0 --
4,912 294,092 4,555 272,730 9,384 561,866
17,563 1,148,181 15,871 1,037,566 36,619 2,393,966
1,624 24,563 1,410 21,326 2,963 44,815
3,734 287,285 3,048 234,505 7,282 560,258
100 769 0 -- 1,060 8,149
34,292 2,816,231 30,994 2,545,381 61,840 5,078,609
24,592 1,412,503 22,238 1,277,294 50,344 2,891,633
35,381 1,636,371 32,755 1,514,918 67,338 3,114,382
15,823 2,778,914 15,465 2,716,040 30,697 5,391,160
1,089 67,246 0 -- 0 --
1,240 34,565 1,071 29,854 2,561 71,387
1,331 38,932 1,352 39,546 2,729 79,822
1,134 80,231 1,185 83,839 3,311 234,252
33,615 1,533,684 32,780 1,495,587 65,430 2,985,243
0 -- 536 8,040 883 13,245
18,184 472,784 17,728 460,927 35,471 922,245
707 16,570 716 16,781 1,572 36,844
2,757 99,080 2,459 88,370 5,557 199,704
1,030 3,637 714 2,521 1,259 4,446
877 48,674 893 49,562 1,766 98,012
15,277 991,095 13,779 893,912 31,307 2,031,041
82,296 1,383,602 82,729 1,390,877 160,192 2,693,221
1,052 19,791 982 18,474 2,031 38,208
100 1,813 0 -- 88 1,595
263 13,676 268 13,936 530 27,560
394 2,339 379 2,250 773 4,590
4,919 88,542 4,657 83,826 9,620 173,159
21,043 2,137,180 18,927 1,922,272 43,644 4,432,593
32,508 2,681,910 29,744 2,453,879 65,936 5,439,719
877 33,765 804 30,954 1,766 67,990
0 -- 0 -- 0 --
5,143 154,611 4,621 138,918 9,780 294,010
16,440 666,848 16,358 663,520 32,374 1,313,169
3,966 537,889 4,011 543,991 7,751 1,051,228
10,362 601,644 9,386 544,997 21,708 1,260,420
964 74,891 893 69,375 88 6,837
351 4,080 357 4,150 530 6,161
1,315 5,260 1,161 4,644 2,561 10,244
1,139 9,824 1,071 9,237 2,561 22,089
</TABLE>
147
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MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
Pan Am Sat Corp+ 100 $ 3,588 176 $ 6,314
Picturetel Corp+ 400 3,269 352 2,877
Qualcom Inc+ 400 29,200 792 57,816
Qwest Communications
International Inc+ 700 43,006 1,596 98,054
SBC Communication Inc 1,826 96,549 12,922 683,250
Scientific-Atlanta Inc 75 2,433 649 21,052
SkyTel Communications Inc+ 0 -- 352 6,336
Sprint Corp 485 41,619 3,298 283,010
Sprint Corp (PCS Group)+ 217 6,944 1,661 53,152
Tel-Save Holdings Inc+ 100 994 540 5,366
Tele Danmark A/S ADR
(Denmark) 1,649 99,351 5,878 354,150
Tele-Communications TCI
Ventures Group Class A+ 2,216 61,356 4,636 128,359
Telecommunications of New
Zealand Corp ADR (New
Zealand) 1,159 46,360 4,058 162,320
Telefonica de Espana SA ADR
(Spain)+ 569 78,260 2,066 284,006
Telephone & Data System Inc 0 -- 0 --
Tellabs Inc+ 187 14,972 1,201 96,155
U.S. West Inc 569 30,335 3,863 205,946
Vanguard Cellular Systems
Class A+ 411 11,457 290 8,084
Vodafone Group PLC ADR (UK) 1,008 183,644 3,682 670,813
Western Wireless Corp Class
A+ 0 -- 88 2,382
------------ ------------
TOTAL TELECOMMUNICATIONS
- VALUE $ 3,005,743 $ 13,827,606
- COST $ 1,833,269 $ 7,672,179
TEXTILES
Percent of Net Assets 0.06% 0.05%
Brown Group Inc 31 $ 484 158 $ 2,469
Burlington Industries Inc+ 729 4,511 419 2,593
Cintas Corp 420 29,715 880 62,260
Collins & Aikman Corp 0 -- 0 --
Mohawk Industries Inc+ 0 -- 0 --
Shaw Industries Inc 1,160 25,448 1,622 35,583
Springs Industries Inc Class
A 33 1,097 185 6,151
Unifi Inc+ 168 2,027 892 10,760
West Point Stevens Inc+ 200 5,100 528 13,464
------------ ------------
TOTAL TEXTILES
- VALUE $ 68,382 $ 133,280
- COST $ 48,084 $ 113,774
</TABLE>
148
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MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
263 $ 9,435 268 $ 9,615 618 $ 22,171
614 5,018 446 3,645 707 5,778
1,227 89,571 1,518 110,814 3,180 232,139
2,553 156,850 2,321 142,617 6,536 401,555
31,377 1,659,059 27,867 1,473,467 64,875 3,430,265
1,429 46,353 1,355 43,953 2,634 85,439
0 -- 0 -- 0 --
7,785 668,050 7,144 613,043 14,791 1,269,252
3,970 127,040 3,619 115,808 7,585 242,719
977 9,709 893 8,874 1,855 18,434
11,681 703,780 11,412 687,572 22,626 1,363,216
7,348 203,448 6,941 192,178 15,007 415,505
7,973 318,920 7,771 310,839 15,640 625,599
4,216 579,653 4,165 572,629 7,997 1,099,614
725 36,431 0 -- 0 --
3,032 242,749 2,781 222,653 6,478 518,644
9,084 484,291 8,380 446,758 17,250 919,640
522 14,551 381 10,620 344 9,589
7,306 1,331,062 7,058 1,285,878 14,188 2,584,875
0 -- 0 -- 265 7,172
------------ ------------ ------------
$ 30,441,428 $ 28,355,634 $ 59,982,057
$ 16,545,823 $ 15,666,281 $ 35,080,790
0.06% 0.09% 0.10%
296 $ 4,625 197 $ 3,078 224 $ 3,500
996 6,163 669 4,139 1,680 10,395
1,350 95,513 1,634 115,606 3,339 236,233
0 -- 0 -- 353 1,787
0 -- 0 -- 88 2,860
2,918 64,014 2,772 60,811 5,829 127,873
293 9,742 324 10,773 670 22,278
1,574 18,986 1,412 17,032 2,950 35,584
1,152 29,376 1,071 27,311 2,120 54,059
------------ ------------ ------------
$ 228,419 $ 238,750 $ 494,569
$ 205,657 $ 202,132 $ 445,509
</TABLE>
149
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FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
TOBACCO
Percent of Net Assets 0.16% 0.37%
British American Tobacco PLC
ADR (UK) 2,121 $ 39,504 8,258 $ 153,805
Fortune Brands Inc 180 5,423 1,301 39,193
Philip Morris Co Inc 2,871 112,327 16,097 629,794
Swedish Match AB ADR
(Sweden)+ 852 28,329 2,502 83,192
------------ ------------
TOTAL TOBACCO
- VALUE $ 185,583 $ 905,984
- COST $ 176,141 $ 805,329
TRANSPORTATION
Percent of Net Assets 0.20% 0.35%
Alexander & Baldwin Inc 204 $ 4,029 607 $ 11,988
Burlington Northern Santa Fe 478 15,834 3,689 122,198
Canadian National Railway Co 4 193 6 290
Carnival Corp Class A 1,600 71,200 5,212 231,934
CNF Transportation Inc 262 11,070 670 28,308
Consolidated Freightways
Corp+ 31 450 159 2,306
CSX Corp 197 7,732 1,673 65,665
Fritz Companies Inc+ 200 1,488 176 1,309
Galileo International Inc 200 10,100 440 22,220
Hunt (J B) Transport
Services 0 -- 0 --
Kansas City Southern
Industries 643 30,060 1,341 62,692
Laidlaw Inc Class B 395 3,037 2,494 19,173
Norfolk Southern Corp 392 11,001 2,895 81,241
Overseas Shipholding Group 393 4,790 273 3,327
Pittston Brink's Group 323 7,914 546 13,377
Pittston Burlington Group 61 438 141 1,013
Roadway Express Inc 46 707 139 2,137
Tidewater Inc 265 4,985 848 15,953
Trinity Industries Inc 322 10,606 563 18,544
Union Pacific Corp 278 13,031 1,889 88,547
Viad Corp 536 14,171 1,314 34,739
Wisconsin Central Transport+ 400 5,500 704 9,680
Xtra Corp 200 7,975 176 7,018
Yellow Corp+ 49 876 196 3,504
------------ ------------
TOTAL TRANSPORTATION
- VALUE $ 237,187 $ 847,163
- COST $ 223,702 $ 775,663
</TABLE>
150
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.58% 0.70% 0.86%
17,503 $ 325,993 16,800 $ 312,899 29,974 $ 558,265
3,084 92,906 2,819 84,922 5,727 172,525
38,944 1,523,684 35,108 1,373,600 80,747 3,159,225
5,527 183,773 5,155 171,403 10,793 358,866
------------ ------------ ------------
$ 2,126,356 $ 1,942,824 $ 4,248,881
$ 1,852,181 $ 1,687,874 $ 3,993,110
0.46% 0.57% 0.66%
1,064 $ 21,014 990 $ 19,553 2,190 $ 43,252
8,527 282,457 7,945 263,177 16,252 538,347
12 580 11 531 23 1,111
8,710 387,595 8,399 373,755 15,128 673,195
1,236 52,221 1,226 51,799 2,418 102,160
355 5,148 255 3,698 503 7,294
3,923 153,978 3,608 141,613 7,462 292,883
263 1,956 0 -- 353 2,625
877 44,289 893 45,097 1,855 93,677
522 12,267 0 -- 0 --
2,112 98,736 1,924 89,947 5,723 267,549
5,928 45,572 5,557 42,719 10,717 82,386
6,821 191,414 6,348 178,140 13,012 365,148
482 5,874 362 4,412 331 4,034
1,102 26,999 1,020 24,990 2,212 54,193
287 2,063 197 1,416 355 2,552
237 3,644 217 3,336 317 4,874
1,524 28,670 1,326 24,945 2,884 54,254
1,056 34,782 1,103 36,330 2,213 72,890
4,475 209,766 4,083 191,390 8,450 396,093
1,801 47,614 2,257 59,669 4,512 119,285
1,315 18,081 1,250 17,188 2,650 36,438
263 10,487 179 7,138 442 17,625
513 9,170 267 4,773 386 6,900
------------ ------------ ------------
$ 1,694,377 $ 1,585,616 $ 3,238,765
$ 1,576,068 $ 1,465,903 $ 3,253,160
</TABLE>
151
<PAGE>
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FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
UTILITIES
Percent of Net Assets 0.26% 0.74%
AES Corp+ 0 $ -- 1,375 $ 51,133
Allegheny Energy Inc 0 -- 0 --
Ameren Corp 188 7,015 1,042 38,880
American Electric Power Inc 136 5,661 1,415 58,899
American Water Works Co Inc 300 9,075 880 26,620
Baltimore Gas & Electric Co 167 4,279 1,069 27,393
Calenergy Inc+ 0 -- 0 --
Carolina Power & Light Co 143 5,702 1,163 46,375
Central & South West Corp 170 4,218 1,658 41,139
Cinergy Corp 157 4,582 1,207 35,229
Conectiv Inc 1,067 22,607 752 15,933
Consolidated Edison Inc 255 11,921 1,799 84,103
Dominion Resources Inc 198 7,648 1,515 58,517
DTE Energy Co 218 8,611 1,170 46,215
Duke Power Co 351 19,963 2,790 158,681
Edison International 337 8,594 2,733 69,692
El Paso Energy Corp 0 -- 0 --
Energy East Corp 0 -- 0 --
Entergy Corp 250 7,063 1,881 53,138
FirstEnergy Corp 260 7,605 1,765 51,626
Florida Progress Corp 0 -- 0 --
FPL Group Inc 221 11,368 1,403 72,167
GPU Inc 122 4,865 1,018 40,593
Hawaiian Electric Industries
Inc 192 6,696 387 13,497
Idacorp Inc 0 -- 0 --
Illinova Corp 0 -- 0 --
Interstate Energy Corp 241 6,643 1,121 30,898
IPALCO Enterprises Inc 0 -- 0 --
Kansas City Power & Light Co 0 -- 0 --
Keyspan Energy 0 -- 0 --
LG & E Energy Corp 0 -- 0 --
Midamerican Energy Co 0 -- 0 --
Minnesota Power & Light Co 349 14,025 238 9,565
Montana Power Co 0 -- 0 --
National Power ADR (UK) 938 30,720 3,300 108,075
Nevada Power Co 444 10,628 317 7,588
New Century Energies Inc 0 -- 20 811
New England Electric System 0 -- 0 --
Niagara Mohawk Power Corp+ 71 1,038 1,372 20,066
NIPSCO Industries Inc 0 -- 0 --
Northeast Utilities+ 0 -- 0 --
Northern States Power Co 190 4,904 1,260 32,524
</TABLE>
152
<PAGE>
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1.36% 1.39% 1.56%
3,191 $ 118,665 2,980 $ 110,819 6,045 $ 224,797
1,586 47,084 0 -- 0 --
2,446 91,266 2,295 85,632 4,650 173,502
3,396 141,359 3,175 132,158 6,475 269,521
1,765 53,391 1,607 48,612 3,356 101,518
2,673 68,496 2,479 63,524 4,947 126,766
789 22,141 0 -- 0 --
2,719 108,420 2,564 102,240 5,114 203,920
3,795 94,163 3,497 86,769 7,053 175,002
2,876 83,943 2,626 76,646 5,284 154,226
1,337 28,328 973 20,615 907 19,217
4,203 196,490 3,887 181,716 7,953 371,802
3,489 134,763 3,274 126,458 6,671 257,666
2,648 104,596 2,432 96,064 4,876 192,601
6,556 372,873 6,059 344,605 12,336 701,609
6,422 163,761 5,920 150,959 12,107 308,728
1,476 53,782 0 -- 0 --
953 51,105 0 -- 0 --
4,445 125,571 4,059 114,667 8,224 232,327
4,320 126,360 3,935 115,099 8,125 237,655
1,257 50,437 0 -- 0 --
3,229 166,092 3,010 154,826 6,234 320,660
2,252 89,799 2,171 86,569 4,302 171,541
809 28,214 806 28,109 1,572 54,823
513 15,935 0 -- 0 --
1,011 24,011 0 -- 0 --
1,829 50,412 1,735 47,821 677 18,660
773 37,056 0 -- 0 --
837 21,344 0 -- 0 --
630 16,695 0 -- 0 --
870 19,847 0 -- 0 --
596 16,092 0 -- 0 --
421 16,919 312 12,539 296 11,896
722 43,952 0 -- 0 --
6,631 217,165 6,621 216,837 12,915 422,965
571 13,668 421 10,078 397 9,503
1,421 57,639 45 1,825 120 4,868
884 43,040 0 -- 0 --
3,417 49,974 3,116 45,572 6,359 92,999
1,779 46,143 0 -- 0 --
1,679 25,080 0 -- 0 --
2,844 73,411 2,646 68,300 5,113 131,978
</TABLE>
153
<PAGE>
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FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
OGE Energy Corp 0 $ -- 0 $ --
Pacificorp 317 5,686 2,318 41,579
PECO Energy Co 242 8,576 1,653 58,578
PG & E Corp 446 14,049 2,915 91,823
Pinnacle West Capital Corp 0 -- 0 --
Potomac Electric Power Co 0 -- 0 --
PP & L Resources Inc 87 2,219 1,160 29,580
Public Service Company Of
New Mexico 0 -- 0 --
Puget Sound Power & Light Co 0 -- 0 --
Reliant Energy Inc 344 9,224 2,243 60,140
SCANA Corp 0 -- 0 --
Sempra Energy 248 5,208 1,813 38,073
Southern Co 765 19,173 5,375 134,711
TECO Energy Inc 0 -- 0 --
Texas Utilities Co 261 11,076 2,099 89,076
Unicom Corp 228 8,108 1,604 57,042
Wisconsin Energy Corp 0 -- 0 --
------------ ------------
TOTAL UTILITIES
- VALUE $ 308,750 $ 1,799,959
- COST $ 289,186 $ 1,658,136
</TABLE>
154
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,073 $ 25,618 0 $ -- 0 $ --
5,355 96,055 5,031 90,244 9,944 178,370
3,982 141,112 3,655 129,524 7,577 268,509
6,859 216,059 6,331 199,425 13,132 413,657
1,169 42,230 0 -- 0 --
1,583 38,586 0 -- 0 --
2,677 68,263 2,513 64,082 5,587 142,468
570 8,764 420 6,458 0 --
851 20,530 0 -- 0 --
5,309 142,348 4,890 131,112 10,077 270,189
1,267 29,774 0 -- 0 --
4,323 90,783 3,979 83,559 8,220 172,619
12,575 315,161 11,671 292,503 23,910 599,243
1,568 33,908 0 -- 0 --
5,018 212,951 4,656 197,588 9,536 404,683
3,867 137,520 3,609 128,345 7,337 260,921
1,442 36,861 0 -- 0 --
------------ ------------ ------------
$ 4,966,005 $ 3,851,899 $ 7,701,409
$ 4,307,171 $ 3,468,806 $ 7,100,085
</TABLE>
155
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
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
(03/11/03)+ 4 $ 15 17 $ 64
Edison Brothers Stores
(09/26/05)+ 0 -- 0 --
Golden State Bancorp
(01/01/01)+ 200 1,006 500 2,531
Marvel Enterprises
(10/02/01) 0 -- 17 --
Petrofina SA (08/05/03)+ 0 -- 100 888
------------ ------------
TOTAL WARRANTS
- VALUE $ 1,021 $ 3,483
- COST $ 1,154 $ 2,258
RIGHTS
Percent of Net Assets 0.00% 0.00%
MEMC Electronic Materials
Inc, 01/01/80 300 $ -- 264 $ --
------------ ------------
TOTAL RIGHTS
- VALUE -- --
- COST -- --
TOTAL COMMON STOCKS
- VALUE $ 24,095,120 $109,664,322
- COST $ 18,265,855 $ 76,786,629
</TABLE>
156
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1999
<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 $ 101 25 $ 94 42 $ 158
16 5 0 -- 0 --
800 4,025 900 4,556 1,900 9,559
130 1 17 -- 54 --
100 888 100 888 200 1,775
------------ ------------ ------------
$ 5,020 $ 5,538 $ 11,492
$ 9,202 $ 4,846 $ 7,982
0.00% 0.00% 0.00%
351 $ -- 357 $ -- 707 $ --
------------ ------------ ------------
-- -- --
-- -- --
$244,592,651 $226,659,217 $480,714,636
$166,717,305 $156,199,345 $355,254,371
</TABLE>
157
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FEBRUARY 28, 1999
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 54.89% 43.01%
U.S. TREASURY BONDS
Percent of Net Assets 10.23% 6.12%
U.S. Treasury Bonds, 6.00%-
13.75%, 02/15/01-02/15/27 $ 9,800,000 $ 11,939,748 $12,350,000 $ 14,912,827
------------ ------------
TOTAL U.S. TREASURY BONDS
- VALUE $ 11,939,748 $ 14,912,827
- COST $ 12,054,628 $ 15,066,890
U.S. TREASURY NOTES
Percent of Net Assets 44.66% 36.89%
U.S. Treasury Notes, 4.00%-
8.75%, 03/31/00-11/15/28 $50,650,000 $ 52,141,836 $86,870,000 $ 89,839,897
------------ ------------
TOTAL U.S. TREASURY NOTES
- VALUE $ 52,141,836 $ 89,839,897
- COST $ 51,684,430 $ 89,030,801
TOTAL U.S. TREASURY
SECURITIES
- VALUE $ 64,081,584 $104,752,724
- COST $ 63,739,058 $104,097,691
</TABLE>
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1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
26.29% 14.56% 1.71%
5.19% 12.69% 1.71%
$15,700,000 $ 19,020,254 $28,240,000 $ 35,134,246 $6,400,000 $ 8,431,605
------------ ------------ ------------
$ 19,020,254 $ 35,134,246 $ 8,431,605
$ 18,674,330 $ 33,690,726 $ 8,846,945
21.10% 1.87% 0.00%
$74,555,000 $ 77,275,058 $ 5,000,000 $ 5,165,321 $ 0 $ --
------------ ------------ ------------
$ 77,275,058 $ 5,165,321 --
$ 76,868,767 $ 5,265,683 --
$ 96,295,312 $ 40,299,567 $ 8,431,605
$ 95,543,097 $ 38,956,409 $ 8,846,945
</TABLE>
159
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal/ Principal/
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS
Percent of Net Assets 30.52% 18.98%
U.S. TREASURY BILLS
Percent of Net Assets 22.92% 10.23%
U.S. Treasury Bills,
4.30%-4.45%**,
04/01/99-05/13/99 $26,864,000 $ 26,754,965 $25,023,000 $ 24,918,854
------------ ------------
TOTAL U.S. TREASURY
BILLS
- VALUE $ 26,754,965 $ 24,918,854
- COST $ 26,755,729 $ 24,919,688
CASH EQUIVALENTS
Percent of Net Assets 7.60% 8.75%
Dreyfus Institutional
Money Market Fund++ 775,364 $ 775,364 1,010,585 $ 1,010,585
Janus International
Money Market Fund++ 3,100,000 3,100,000 9,300,000 9,300,000
Merrimac Cash Fund-
Premium Class++ 5,000,000 5,000,000 11,000,000 11,000,000
------------ ------------
TOTAL CASH EQUIVALENTS
- VALUE $ 8,875,364 $ 21,310,585
- COST $ 8,875,364 $ 21,310,585
TOTAL SHORT-TERM
INSTRUMENTS
- VALUE $ 35,360,329 $ 46,229,439
- COST $ 35,636,093 $ 46,230,273
TOTAL INVESTMENT IN
SECURITIES
(NOTES 1 AND 3)- VALUE $123,807,033 $260,646,485
- COST $117,636,006 $227,114,593
------------ ------------
TOTAL INVESTMENT IN
SECURITIES 106.05% $123,807,033 107.02% $260,646,485
Other Assets and
Liabilities, Net (6.05)% (7,066,623) (7.02%) (17,085,423)
----------- ------------ ----------- ------------
TOTAL NET ASSETS 100.00% $116,740,410 100.00% $243,561,062
=========== ============ =========== ============
+ Non-income earning securities.
++ Represents investment of collateral received from securities lending trans-
actions. See Note 4.
* Cost for federal income tax purposes is $117,642,542, $227,165,080,
$315,139,476, $221,836,741, $414,678,012 for Lifepath 2000, Lifepath 2010,
Lifepath 2020, Lifepath 2030, and Lifepath 2040, respectively and net
unrealized appreciation consists of:
Gross Unrealized
Appreciation $ 8,302,397 $ 38,682,689
Gross Unrealized
Depreciation (2,137,906) (5,201,284)
------------ ------------
Net Unrealized
Appreciation $ 6,164,491 $ 33,481,405
============ ============
</TABLE>
** Yield to maturity.
The accompanying notes are an integral part of these financial statements.
160
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MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--FEBRUARY 28,
1999
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal/ Principal/ Principal/
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
14.26% 9.61% 9.79%
5.95% 2.98% 0.75%
$21,868,000 $ 21,772,205 $ 8,305,000 $ 8,266,625 $ 3,688,000 $ 3,666,849
------------ ------------ ------------
$ 21,772,205 $ 8,266,625 $ 3,666,849
$ 21,773,013 $ 8,266,782 $ 3,666,671
8.31% 6.63% 9.04%
33,039 $ 33,039 1,147,440 $ 1,147,440 922,675 $ 922,675
12,900,000 12,900,000 4,700,000 4,700,000 20,100,000 20,100,000
17,500,000 17,500,000 12,500,000 12,500,000 23,500,000 23,500,000
------------ ------------ ------------
$ 30,433,039 $ 18,347,440 $ 44,522,675
$ 30,433,039 $ 18,347,440 $ 44,522,675
$ 52,205,244 $ 26,614,065 $ 48,189,524
$ 52,206,052 $ 26,614,222 $ 48,189,346
------------ ------------ ------------
$393,093,207 $293,572,849 $537,335,765
$314,466,454 $221,769,976 $412,290,662
------------ ------------ ------------
107.35% $393,093,207 106.05% $293,572,849 109.10% $537,335,765
(7.35%) (26,929,574) (6.05%) (16,742,431) (9.10%) (44,816,880)
- ----------- ------------ ----------- ------------ ----------- ------------
100.00% $366,163,633 100.00% $276,830,418 100.00% $492,518,885
=========== ============ =========== ============ =========== ============
$ 88,286,197 $ 81,422,945 $144,148,706
(10,332,466) (9,686,837) (21,490,953)
------------ ------------ ------------
$ 77,953,731 $ 71,736,108 $122,657,753
============ ============ ============
</TABLE>
161
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MASTER INVESTMENT PORTFOLIO--MONEY MARKET
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Yield Maturity
Principal Security Name to Maturity Date Value
<C> <S> <C> <C> <C>
CERTIFICATES OF DEPOSIT-19.42%
$ 5,000,000 Abbey National Treasury Service 5.04% 02/08/00 $ 4,998,172
5,000,000 ABN Amro Bank NV 5.14 02/22/00 4,998,099
3,000,000 Bayerische Hypo-Und Vereinsbank AG 5.23 03/01/00 3,000,290
5,000,000 Canadian Imperial Bank of Commerce 5.71 04/01/99 5,001,951
10,000,000 FCC National Bank 4.98 06/15/99 10,000,000
7,000,000 Morgan Guaranty Trust Co 5.13 05/10/99 7,000,000
7,000,000 Nationsbank NA 5.06 05/17/99 7,000,000
5,000,000 Toronto-Dominion Bank 5.00 06/21/99 5,000,000
4,000,000 Toronto-Dominion Bank 5.08 12/29/99 4,001,912
------------
TOTAL CERTIFICATES OF DEPOSIT $ 51,000,424
COMMERCIAL PAPER-66.44%
$ 3,119,000 Alpine Securitization Corp 4.87% 03/04/99 $ 3,116,890
6,876,000 Alpine Securitization Corp 4.88 04/13/99 6,834,056
6,000,000 Amsterdam Funding Corp 4.90 04/13/99 5,963,250
4,000,000 Atlantis One Funding Corp 4.98 03/25/99 3,985,613
5,000,000 Atlantis One Funding Corp 4.85 06/14/99 4,927,924
3,000,000 Atlantis One Funding Corp 4.89 08/25/99 2,927,058
7,000,000 Banco Mercantile Del Norte 4.82 09/27/99 6,801,309
10,000,000 Corporate Receivables Corp 4.90 04/14/99 9,937,389
10,000,000 Den Danske Corp 4.87 06/14/99 9,855,401
4,000,000 First National Bank Chicago 5.75 05/08/99 3,999,630
8,500,000 General Electric Capital Corp 4.93 06/08/99 8,382,433
10,000,000 General Electric Capital Services Inc 4.94 05/13/99 9,897,083
10,000,000 General Electric Co 5.00 04/12/99 9,938,889
12,318,000 General Motors Acceptance Corp 4.87 03/01/99 12,314,667
8,000,000 Mont Blanc Capital Corp 4.86 03/26/99 7,970,840
10,000,000 Monte Rosa Capital Corp 4.84 03/15/99 9,978,489
10,000,000 National Bank of Canada 4.88 06/14/99 9,855,045
5,000,000 Nationsbank NA 4.95 10/06/99 5,000,000
5,000,000 Nordbanken NA 4.86 04/07/99 4,973,675
3,353,000 Park Avenue Receivables Corp 4.85 03/25/99 3,341,255
8,000,000 Thames Asset Global Securitization 4.85 04/15/99 7,949,345
10,000,000 Twin Towers Inc 4.87 03/01/99 9,997,294
4,000,000 Variable Funding Capital Corp 4.86 03/10/99 3,994,060
5,000,000 WCP Funding Corp 4.90 03/11/99 4,991,833
3,000,000 Windmill Funding Corp 4.84 04/19/99 2,979,430
4,611,000 Windmill Funding Corp 4.90 04/01/99 4,590,289
------------
TOTAL COMMERCIAL PAPER $174,503,147
</TABLE>
162
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MASTER INVESTMENT PORTFOLIO--MONEY MARKET MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--MONEY MARKET
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Yield to Maturity
Principal Security Name Maturity Date Value
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES-1.90%
$ 5,000,000 Federal Home Loan Bank 4.95% 02/17/00 $ 4,997,666
------------
TOTAL U.S. GOVERNMENT AGENCY SECURITIES $ 4,997,666
VARIABLE & FLOATING RATE NOTES-9.14%
$ 7,000,000 Bank One NA 5.03% 04/26/99 $ 7,002,075
10,000,000 Household Financing Corp 5.27 04/19/99 10,000,000
7,000,000 Wachovia Bank NA 4.80 05/14/99 6,998,993
------------
TOTAL VARIABLE & FLOATING RATE NOTES $ 24,001,068
REPURCHASE AGREEMENTS-3.81%
10,007,000 Merrill Lynch & Co. Inc.
Repurchase Agreement dated
2/26/99 due 3/1/99 with a
maturity value of $10,010,121 and
an effective yield of 4.85%
collateralized by Federal Home
Loan Corp. obligations with rates
ranging from 6.13% to 7.43%,
maturity dates ranging from
04/01/17 to 07/01/37, and an
aggregate market value of
$6,941,059, Federal National
Mortgage Association obligations
with rates ranging from 5.94% to
7.64%, maturity dates ranging
from 01/01/07 to 06/01/27, and an
aggregate market value of
$3,269,264........................ 10,007,000
773 Morgan Stanley Triparty
Repurchase Agreement dated
2/26/99 due 3/1/99 with a
maturity value of $773 and an
effective yield of 4.53%
collateralized by U.S. Treasury
Notes with a rate of 6.25%, a
maturity date of 08/31/00 and a
market value of $10,173........... 773
------------
TOTAL REPURCHASE AGREEMENTS 10,007,773
TOTAL INVESTMENT IN SECURITIES 100.71% $264,510,078
(Cost $264,510,078) ** (Notes 1
and 3)
Other Assets and Liabilities (0.71)% (1,863,757)
-------- ------------
TOTAL NET ASSETS 100.00% $262,646,321
======== ============
</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.
163
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MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS-94.09%
ADVERTISING-0.11%
Omnicom Group 57,919 $ 3,837,134
------------
TOTAL ADVERTISING
- VALUE $ 3,837,134
- COST $ 2,634,965
AEROSPACE & DEFENSE-1.26%
Allied Signal Inc 192,506 $ 7,964,936
Boeing Co 343,307 12,208,855
Briggs & Stratton Corp 8,142 397,431
General Dynamics Corp 43,650 2,638,097
Lockheed Martin Corp 134,914 5,084,571
Northrop Grumman Corp 23,400 1,458,113
Rockwell International Corp 65,783 2,923,232
Textron Inc 54,530 4,253,340
United Technologies Corp 77,458 9,595,110
------------
TOTAL AEROSPACE & DEFENSE
- VALUE $ 46,523,685
- COST $ 38,060,675
AIRLINES-0.44%
AMR Corp+ 62,790 $ 3,480,921
Delta Air Lines Inc 49,124 2,987,353
FDX Corp+ 50,668 4,838,794
Southwest Airlines Co 115,120 3,467,990
USAirways Group Inc+ 30,167 1,429,162
------------
TOTAL AIRLINES
- VALUE $ 16,204,220
- COST $ 11,258,700
APPAREL-0.24%
Fruit of the Loom Inc Class A+ 25,177 $ 319,433
Liz Claiborne Inc 22,371 753,623
Nike Inc Class B 98,482 5,281,097
Reebok International Ltd+ 19,551 315,260
Russell Corp 12,682 247,299
VF Corp 41,207 1,983,087
------------
TOTAL APPAREL
- VALUE $ 8,899,799
- COST $ 7,514,952
</TABLE>
164
<PAGE>
MASTER INVESTMENT PORTFOLIO--S & P 500 INDEX MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
AUTO PARTS & EQUIPMENT-0.58%
Cooper Tire & Rubber Co 26,221 $ 517,865
Dana Corp 56,874 2,146,994
Deluxe Corp 27,778 940,980
Eaton Corp 24,588 1,705,793
Genuine Parts Co 61,946 1,854,509
Goodyear Tire & Rubber Co 53,526 2,475,578
Illinois Tool Works Inc 85,931 5,907,756
ITT Industries Inc 35,831 1,399,648
Navistar International Corp+ 23,101 993,343
PACCAR Inc 26,968 1,129,285
The Pep Boys--Manny Moe & Jack 18,351 334,906
TRW Inc 41,140 1,943,865
------------
TOTAL AUTO PARTS & EQUIPMENT
- VALUE $ 21,350,522
- COST $ 17,929,784
AUTOMOBILES-1.17%
Ford Motor Co 415,523 $ 24,645,708
General Motors Corp Class A 224,829 18,562,444
------------
TOTAL AUTOMOBILES
- VALUE $ 43,208,152
- COST $ 27,144,553
BANK & FINANCE-11.72%
American Express Corp 155,306 $ 16,850,701
Associates First Capital Corp 248,230 10,084,344
Bank of New York Inc 261,426 9,133,571
Bank One Corp 402,126 21,614,273
BankAmerica Corp 594,466 38,826,061
BankBoston Corp 100,964 4,082,732
Bankers Trust Corp 32,808 2,854,296
BB&T Corp 100,653 3,812,232
Bear Stearns Co Inc 40,609 1,738,573
Capital One Financial Corp 22,567 2,880,113
Chase Manhattan 290,441 23,126,365
Citigroup Inc 780,319 45,843,741
Comerica Inc 53,405 3,538,081
Countrywide Credit Industries Inc 38,182 1,446,143
Equifax Inc 50,701 1,913,963
Federal Home Loan Mortgage Corp 233,058 13,721,290
</TABLE>
165
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MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Federal National Mortgage Assoc 356,191 $ 24,933,370
Fifth Third Bancorp 91,514 6,045,644
First Union Corp 340,327 18,143,683
Firstar Corp 78,982 6,614,743
Fleet Financial Group Inc 195,298 8,385,608
Franklin Resources Inc 87,168 2,773,032
Golden West Financial 19,567 1,838,075
Household International Inc 165,381 6,718,603
Huntington Bancshares Inc 72,615 2,305,526
Keycorp 155,917 5,028,323
Lehman Brothers Holdings 39,943 2,116,979
MBNA Corp 274,917 6,666,737
Mellon Bank Corp 89,735 6,068,329
Mercantile Bancorp 53,608 2,445,865
Merrill Lynch & Co Inc 121,536 9,327,888
MGIC Investment Corp 37,612 1,281,159
Morgan (J P) & Co Inc 59,963 6,682,127
Morgan Stanley Dean Witter 198,350 17,950,675
National City Corp 113,728 7,946,744
Northern Trust Corp 38,174 3,411,801
PNC Bank Corp 103,389 5,382,690
Regions Financial Corp 75,659 2,875,042
Republic New York Corp 36,945 1,674,070
Ryder System Inc 24,801 669,627
Schwab (Charles) Corp 137,785 10,273,594
SLM Holding Corp 56,989 2,443,403
State Street Boston Corp 55,235 4,235,834
Summit Bancorp 59,690 2,305,526
SunTrust Banks Inc 109,269 7,423,463
Synovus Financial Corp 91,259 2,173,105
U.S. Bancorp 249,395 8,058,576
Union Planters Corp 46,322 2,093,175
Wachovia Corp 69,778 5,935,491
Washington Mutual Inc 204,080 8,163,200
Wells Fargo & Co 555,500 20,414,625
------------
TOTAL BANK & FINANCE
- VALUE $432,272,811
- COST $302,099,858
</TABLE>
166
<PAGE>
MASTER INVESTMENT PORTFOLIO--S & P 500 INDEX MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
BASIC INDUSTRIES-1.20%
Alcoa Inc 129,230 $ 5,233,815
ASARCO Inc 13,913 196,521
Avery-Dennison Corp 40,033 2,149,272
Baker Hughes Inc 111,342 2,004,156
Bemis Co 18,037 614,385
Boise Cascade Corp 19,443 603,948
Champion International Corp 32,971 1,219,927
Cyprus Amax Minerals 31,793 357,671
Dover Corp 76,799 2,611,166
Fort James Corp 75,901 2,267,542
Georgia-Pacific Corp 30,400 2,226,800
Harnischfeger Industries Inc 16,712 128,474
Homestake Mining Co 80,453 739,162
Ikon Office Solutions Inc 47,200 666,700
Inco Ltd 57,458 725,407
Louisiana-Pacific Corp 37,482 688,732
Mead Corp 35,487 1,080,136
Minnesota Mining & Manufacturing Co 137,901 10,213,293
NACCO Industries Inc Class A 2,652 233,376
Newmont Mining Corp 56,513 974,849
Potlatch Corp 10,034 348,054
Sealed Air Corp+ 28,555 1,449,166
Union Camp Corp 23,854 1,595,236
Westvaco Corp 35,127 785,967
Weyerhauser Co 68,329 3,809,342
Willamette Industries Inc 38,139 1,389,690
------------
TOTAL BASIC INDUSTRIES
- VALUE $ 44,312,787
- COST $ 44,415,464
BEVERAGES-2.63%
Anheuser-Busch Inc 164,223 $ 12,593,851
Coca-Cola Co 846,537 54,125,459
Coca-Cola Enterprises Co 134,742 4,177,002
Coors (Adolph) Co Class B 12,691 755,908
Diageo PLC ADR (UK) 17 769
Pepsico Inc 503,992 18,962,699
Seagrams Co Ltd 135,567 6,286,920
------------
TOTAL BEVERAGES
- VALUE $ 96,902,608
- COST $ 71,102,447
</TABLE>
167
<PAGE>
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MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
BROADCASTING-1.15%
Clear Channel Communications Inc+ 90,201 $ 5,412,060
Kingworld Productions+ 25,313 669,212
MediaOne Group Inc+ 208,464 11,361,288
Tele-Communications Inc Class A+ 184,800 11,607,750
Tribune Co 40,831 2,707,606
Viacom Inc Class B+ 119,572 10,567,176
------------
TOTAL BROADCASTING
- VALUE $ 42,325,092
- COST $ 23,130,804
BUILDING MATERIALS & SERVICES-0.39%
Cooper Industries Inc 35,732 $ 1,563,275
Corning Inc 79,569 4,256,942
Danaher Corp 45,577 2,199,090
Owens Corning Fiberglass Corp 18,462 587,322
Owens Illinois Inc+ 53,386 1,277,927
PPG Industries Inc 61,000 3,175,813
Snap-On Inc 20,427 577,063
Stanley Works 30,760 747,853
------------
TOTAL BUILDING MATERIALS & SERVICES
- VALUE $ 14,385,285
- COST $ 13,739,756
BUSINESS SERVICES-0.30%
Cendant Corp+ 293,228 $ 4,856,589
Dun & Bradstreet Corp 57,548 1,971,019
Ecolab Inc 44,444 1,772,205
Paychex Inc 56,349 2,387,789
------------
TOTAL BUSINESS SERVICES
- VALUE $ 10,987,602
- COST $ 11,922,176
CHEMICALS-1.65%
Air Products & Chemicals Inc 79,694 $ 2,560,170
Clorox Co 37,729 4,463,812
Dow Chemical Co 76,172 7,493,421
Du Pont (E I) De Nemours 386,722 19,843,673
Eastman Chemical Co 27,144 1,280,858
FMC Corp+ 11,492 588,247
Goodrich (B F) Co 25,061 855,207
</TABLE>
168
<PAGE>
MASTER INVESTMENT PORTFOLIO--S & P 500 INDEX MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Grace (W R) Co+ 25,678 $ 345,048
Great Lakes Chemical Corp 20,478 797,362
Hercules Inc 33,917 939,077
International Flavor & Fragrances 36,598 1,507,380
Monsanto Co 215,235 9,806,645
Morton International Inc 38,600 1,394,425
Nalco Chemical Co 22,680 637,875
Praxair Inc 54,319 1,897,770
Rohm & Haas Co 57,360 1,792,500
Rubbermaid Inc 51,667 1,708,240
Sigma-Aldrich Corp 34,800 917,850
Union Carbide Corp 45,779 2,014,276
------------
TOTAL CHEMICALS
- VALUE $ 60,843,836
- COST $ 52,893,054
COMPUTER SOFTWARE-6.62%
3Com Corp+ 123,240 $ 3,874,358
Adobe Systems Inc 22,666 912,307
America Online Inc 314,684 27,987,208
Autodesk Inc 16,038 643,525
Automatic Data Processing 207,611 8,252,537
BMC Software Inc+ 73,630 3,009,626
Ceridian Corp+ 24,613 1,762,906
Computer Associates International Inc 184,958 7,768,236
Computer Sciences Corp 54,243 3,613,940
Compuware Corp+ 62,899 3,518,413
Electronic Data Systems Corp 169,350 7,874,775
First Data Corp 152,158 5,820,044
IMS Health Inc 110,162 3,910,751
Microsoft Corp+ 856,349 128,559,394
Novell Inc+ 121,091 2,346,138
Oracle Systems Corp+ 333,857 18,654,260
Parametric Technology Corp+ 92,386 1,420,435
Peoplesoft Inc+ 79,743 1,505,149
Sun Microsystems Inc+ 130,760 12,724,583
------------
TOTAL COMPUTER SOFTWARE
- VALUE $244,158,585
- COST $143,456,022
</TABLE>
169
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
COMPUTER SYSTEMS-5.91%
Apple Computer Inc+ 46,096 $ 1,604,717
Cabletron Systems Inc+ 55,039 447,192
Cisco Systems Inc+ 542,249 53,038,730
Compaq Computer Corp 583,999 20,585,965
Data General Corp+ 17,039 235,351
Dell Computer Corp+ 437,319 35,040,185
EMC Corp+ 172,440 17,653,545
Gateway 2000 Inc+ 53,600 3,896,050
Harris Corp 27,659 860,886
Hewlett-Packard Co 356,248 23,668,227
International Business Machine Corp 320,521 54,488,570
Seagate Technology Inc+ 84,281 2,438,881
Shared Medical System Corp 9,110 464,610
Silicon Graphics Inc+ 64,542 1,028,638
Unisys Corp+ 87,169 2,598,726
------------
TOTAL COMPUTER SYSTEMS
- VALUE $218,050,273
- COST $108,943,260
CONTAINER & PACKAGING-0.25%
Ball Corp 10,353 $ 433,532
Crown Cork & Seal Co 42,146 1,169,552
International Paper Co 105,240 4,420,080
Temple-Inland Inc 19,218 1,151,879
Tenneco Inc 58,722 1,757,990
Tupperware Corp 19,961 349,318
------------
TOTAL CONTAINER & PACKAGING
- VALUE $ 9,282,351
- COST $ 10,520,804
ELECTRICAL EQUIPMENT-3.64%
Aeroquip-Vickers Inc 9,543 $ 540,372
General Electric Co 1,125,405 112,892,189
Grainger (W W) Inc 32,777 1,458,577
Masco Corp 117,773 3,091,541
Motorola Inc 206,187 14,484,637
National Service Industries Inc 14,501 465,845
</TABLE>
170
<PAGE>
MASTER INVESTMENT PORTFOLIO--S & P 500 INDEX MASTER PORTFOLIO--FEBRUARY
28, 1999
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Raychem Corp 27,372 $ 624,424
Thomas & Betts Corp 19,170 799,149
------------
TOTAL ELECTRICAL EQUIPMENT
- VALUE $134,356,734
- COST $ 81,035,083
ELECTRONICS-4.21%
Advanced Micro Devices+ 49,200 $ 879,450
AMP Inc 75,272 4,003,530
Applied Materials Inc+ 127,012 7,065,043
CBS Corp 242,601 8,945,912
Commscope Inc+ 2 37
EG&G Inc 15,572 412,658
Emerson Electric Co 151,371 8,694,372
General Instrument Corp+ 57,035 1,668,274
Honeywell Inc 43,416 3,036,407
Intel Corp 572,559 68,671,295
Johnson Controls Inc 29,137 1,791,926
KLA Instruments Corp+ 29,751 1,541,474
LSI Logic Corp+ 48,795 1,265,620
Micron Technology Inc+ 81,074 4,671,867
National Semiconductor+ 57,040 598,920
Perkin-Elmer Corp 16,968 1,607,718
Pitney Bowes Inc 93,675 5,919,089
Raytheon Co Class B 115,852 6,190,841
Solectron Corp+ 80,786 3,610,124
Tektronix Inc 16,446 320,697
Texas Instruments Inc 133,869 11,939,441
Xerox Corp 225,150 12,425,466
------------
TOTAL ELECTRONICS
- VALUE $155,260,161
- COST $ 97,237,656
ENERGY & RELATED-5.30%
Amerada Hess Corp 31,121 $ 1,412,115
Anadarko Petroleum Corp 41,399 1,138,473
Apache Corp 33,296 663,839
Ashland Inc 26,196 1,165,722
Atlantic Richfield Corp 110,377 6,029,344
Burlington Resources Inc 61,090 1,977,789
Chevron Corp 224,051 17,223,921
</TABLE>
171
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Coastal Corp 73,165 $ 2,341,280
Columbia Gas System Inc 28,684 1,448,542
Consolidated Natural Gas Co 33,003 1,813,102
Eastern Enterprises 7,388 283,976
Enron Corp 113,724 7,392,060
Exxon Corp 835,005 55,580,020
Halliburton Co 151,220 4,271,965
Helmerich & Payne Inc 17,480 285,143
Kerr-McGee Corp 16,339 466,683
Mobil Corp 267,901 22,286,014
NICOR Inc 16,447 628,070
Occidental Petroleum Corp 119,175 1,795,073
ONEOK Inc 10,777 290,305
Oryx Energy Co+ 33,958 352,314
Peoples Energy Corp 12,371 419,841
Phillips Petroleum Co 87,600 3,389,025
Rowan Co Inc+ 29,327 252,945
Royal Dutch Petroleum Corp 736,514 32,314,552
Schlumberger Ltd 187,581 9,109,402
Sonat Offshore Drilling Co 37,778 956,256
Sunoco Inc 32,283 982,614
Texaco Inc 183,685 8,552,833
Union Pacific Resources Group 86,976 777,348
Unocal Corp 83,202 2,345,256
USX--Marathon Group 105,082 2,173,884
Williams Co Inc 147,098 5,442,626
------------
TOTAL ENERGY & RELATED
- VALUE $195,562,332
- COST $167,611,434
ENGINEERING & CONSTRUCTION-0.10%
Armstrong World Industries Inc 13,698 $ 673,770
Centex Corp 20,576 757,454
Fleetwood Enterprises Inc 12,106 392,688
Fluor Corp 26,114 918,898
Foster Wheeler Corp 14,070 175,875
Kaufman & Broad Home Corp 15,755 354,488
Pulte Corp 15,093 363,175
------------
TOTAL ENGINEERING & CONSTRUCTION
- VALUE $ 3,636,348
- COST $ 4,042,600
</TABLE>
172
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MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
ENTERTAINMENT & LEISURE-1.61%
Brunswick Corp 33,178 $ 707,106
Disney (Walt) Co 703,705 24,761,620
Harrah's Entertainment Inc+ 42,245 704,963
Hasbro Inc 45,095 1,668,515
Mattel Inc 99,077 2,613,156
Mirage Resorts Inc+ 62,181 1,212,530
Polaroid Corp 15,445 368,749
Time Warner Inc 421,441 27,182,945
------------
TOTAL ENTERTAINMENT & LEISURE
- VALUE $ 59,219,584
- COST $ 39,209,547
ENVIRONMENTAL CONTROL-0.31%
Browning-Ferris Industries Inc 59,799 $ 1,883,669
Waste Management Inc 197,408 9,648,316
------------
TOTAL ENVIRONMENTAL CONTROL
- VALUE $ 11,531,985
- COST $ 11,502,357
FOOD & RELATED-3.68%
Albertson's Inc 84,309 $ 4,805,613
American Stores Co 94,382 3,185,393
Archer-Daniels-Midland Co 204,137 3,087,572
Bestfoods 98,199 4,609,216
Brown-Forman Corp Class B 23,697 1,562,521
Campbell Soup Co 153,980 6,188,055
ConAgra Inc 168,216 5,067,507
Darden Restaurants Inc 47,983 1,055,626
General Mills Inc 52,628 4,246,422
Great Atlantic & Pacific Tea Co 13,066 412,396
Heinz (H J) Co 124,425 6,773,386
Hershey Foods Corp 49,207 3,063,136
Kellogg Co 139,304 5,154,248
Kroger Co+ 88,017 5,693,600
McDonald's Corp 232,442 19,757,570
Pioneer Hi Bred International Inc 83,214 1,950,328
Quaker Oats Co 46,919 2,562,950
Ralston-Purina Group 107,455 2,894,569
RJR Nabisco Holdings Corp 111,721 3,051,380
Safeway Inc+ 167,144 9,652,566
</TABLE>
173
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MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Sara Lee Corp 313,894 $ 8,533,993
Super Value Inc 41,447 997,318
Sysco Corp 114,911 3,246,236
Tricon Global Restaurants+ 52,553 3,258,286
Unilever NV (Netherlands) 219,882 15,927,702
UST Inc 63,844 1,887,388
Wendy's International Inc 43,018 1,029,743
Winn-Dixie Stores Inc 51,099 2,238,775
Wrigley (W M) Jr Co 39,970 3,717,210
------------
TOTAL FOOD & RELATED
- VALUE $135,610,705
- COST $100,122,282
FURNITURE & APPLIANCES-0.08%
Maytag Corp 30,981 $ 1,736,872
Whirlpool Corp 26,133 1,136,786
------------
TOTAL FURNITURE & APPLIANCES
- VALUE $ 2,873,658
- COST $ 2,362,234
HEALTHCARE-0.52%
Cardinal Health Inc 89,203 $ 6,439,342
HCR Manor Care Inc+ 37,755 844,768
Healthsouth Corp+ 145,697 1,693,728
McKesson HBOC Inc 93,203 6,337,804
St Jude Medical Inc+ 28,759 722,570
United Healthcare Corp 64,042 3,158,071
------------
TOTAL HEALTHCARE
- VALUE $ 19,196,283
- COST $ 20,182,826
HOSPITAL & MEDICAL SUPPLIES-2.25%
Bard (C R) Inc 18,549 $ 1,045,700
Bausch & Lomb Inc 19,217 1,159,025
Baxter International Inc 97,977 6,895,131
Becton Dickinson & Co 84,666 2,836,311
Biomet Inc 38,788 1,423,035
Boston Scientific Corp+ 135,132 3,580,998
Columbia/HCA Healthcare Corp 221,945 3,967,267
Guidant Corp 103,493 5,899,101
Johnson & Johnson 461,767 39,423,358
</TABLE>
174
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Mallinckrodt Group Inc 24,539 $ 759,175
Medtronic Inc 196,643 13,887,912
Tenet Healthcare Corp+ 106,214 2,091,088
------------
TOTAL HOSPITAL & MEDICAL SUPPLIES
- VALUE $ 82,968,101
- COST $ 57,433,800
HOUSEHOLD PRODUCTS-2.24%
Alberto-Culver Co Class B 19,190 $ 460,560
Avon Products Inc 90,256 3,756,906
Colgate-Palmolive Co 100,709 8,547,676
Gillette Co 381,016 20,431,983
Kimberly-Clark Corp 186,212 8,798,517
Procter & Gamble Co 455,589 40,775,216
------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 82,770,858
- COST $ 55,587,829
INSURANCE-3.53%
Aetna Inc 49,127 $ 3,638,468
Allstate Corp 281,770 10,566,375
American General Corp 86,598 6,343,304
American International Group Inc 424,311 48,344,935
Aon Corp 58,340 3,438,414
Chubb Corp 56,055 3,349,286
CIGNA Corp 70,968 5,570,988
Cincinnati Financial Corp 57,248 2,007,258
Conseco Inc 108,091 3,235,974
Hartford Financial Services Group 80,323 4,342,462
Humana Inc+ 57,061 998,568
Jefferson-Pilot Corp 36,517 2,476,309
Lincoln National Corp 34,772 3,292,474
Loews Corp 39,241 3,068,156
Marsh & McLennan Companies Inc 88,410 6,260,533
MBIA Inc 34,142 2,101,867
Progressive Corp Ohio 24,869 3,195,667
Provident Co Inc 46,552 1,524,578
Providian Financial Corp 48,734 4,976,960
SAFECO Corp 46,961 1,887,245
St Paul Co 80,403 2,603,047
Torchmark Corp 48,346 1,607,505
</TABLE>
175
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Transamerica Corp 43,074 $ 3,125,557
UNUM Corp 47,632 2,131,532
------------
TOTAL INSURANCE
- VALUE $130,087,462
- COST $ 89,312,996
LODGING-0.12%
Hilton Hotels Corp 88,402 $ 1,397,857
Marriott International 86,020 3,096,720
------------
TOTAL LODGING
- VALUE $ 4,494,577
- COST $ 3,326,589
MACHINERY-0.47%
Black & Decker Corp 30,387 $ 1,481,366
Case Corp 25,321 493,760
Caterpillar Inc 123,375 5,621,273
Cummins Engine Co Inc 13,957 572,237
Deere & Co 82,050 2,682,009
Ingersoll-Rand Co 56,608 2,688,880
McDermott International Inc 20,687 412,447
Milacron Inc 13,417 238,990
Pall Corp 42,864 908,181
Parker Hannifin Corp 37,462 1,390,777
Thermo Electron Corp+ 54,991 759,563
------------
TOTAL MACHINERY
- VALUE $ 17,249,483
- COST $ 17,374,354
MANUFACTURING-0.45%
Tyco International Ltd 221,393 $ 16,479,941
------------
TOTAL MANUFACTURING
- VALUE $ 16,479,941
- COST $ 10,700,373
METAL FABRICATORS-0.38%
Alcan Aluminum Ltd 78,438 $ 1,907,024
Allegheny Teledyne Inc 67,656 1,395,405
Barrick Gold Corp 128,281 2,268,970
Battle Mountain Gold Co 79,036 266,747
Bethlehem Steel Corp+ 44,531 392,429
</TABLE>
176
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Crane Co 23,789 $ 652,711
Engelhard Corp 49,415 880,205
Freeport McMoRan Inc+ 57,328 541,033
Nucor Corp 30,207 1,346,099
Phelps Dodge Corp 19,923 966,266
Placer Dome Inc 85,533 935,517
Reynolds Metals Co 22,303 953,453
Timken Co 21,647 382,881
USX - U.S. Steel Group 30,103 761,982
Worthington Industries Inc 32,184 408,335
------------
TOTAL METAL FABRICATORS
- VALUE $ 14,059,057
- COST $ 18,280,519
PHARMACEUTICALS-8.94%
Abbott Laboratories 521,291 $ 24,207,451
Allergan Inc 22,471 1,831,387
ALZA Corp+ 29,771 1,561,117
American Home Products Corp 452,762 26,939,339
Amgen Inc+ 87,480 10,924,065
Bristol-Myers Squibb Co 341,187 42,968,238
Lilly (Eli) & Co 377,695 35,762,995
Merck & Co Inc 818,164 66,884,907
Millipore Corp 15,193 423,505
Pfizer Inc 445,648 58,797,683
Pharmacia and Upjohn Inc 174,381 9,503,765
Schering-Plough Corp 504,749 28,234,397
SouthTrust Corp 48,400 1,939,025
Warner Lambert Co 281,974 19,473,829
------------
TOTAL PHARMACEUTICALS
- VALUE $329,451,703
- COST $170,732,360
PUBLISHING-0.86%
American Greetings Corp Class A 24,374 $ 577,359
Comcast Corp Class A 126,962 9,006,367
Donnelley (R R) & Sons Co 46,729 1,600,468
Dow Jones & Co Inc 32,341 1,520,027
Gannett Co Inc 96,778 6,145,403
Interpublic Group Co Inc 47,523 3,555,315
Knight-Ridder Inc 27,073 1,358,726
</TABLE>
177
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
McGraw-Hill Inc 33,795 $ 3,698,440
Meredith Corp 17,996 607,365
Moore Corp Ltd 30,496 320,208
New York Times Co Class A 62,857 1,948,567
Times Mirror Co Class A 27,381 1,528,202
------------
TOTAL PUBLISHING
- VALUE $ 31,866,447
- COST $ 20,546,989
RETAIL & RELATED-5.88%
AutoZone Inc+ 52,665 $ 1,843,261
Circuit City Stores Inc 34,270 1,859,148
Consolidated Stores Corp+ 37,242 938,033
Costco Co Inc+ 74,466 5,980,551
CVS Corp 133,591 7,080,323
Dayton-Hudson Corp 151,216 9,460,451
Dillards Inc Class A 36,888 917,589
Dollar General Corp 63,330 1,895,942
Eastman Kodak Co 111,359 7,370,574
Federated Department Stores Inc+ 70,575 2,686,261
Fred Myer Inc+ 52,741 3,388,609
Gap Inc 199,195 12,885,427
Harcourt General Inc 24,402 1,117,917
Home Depot Inc 506,355 30,223,064
Jostens Inc 12,489 292,711
K Mart Corp+ 169,360 2,963,800
Kohls Corp+ 54,470 3,758,430
Limited Inc 78,359 2,781,745
Longs Drug Stores Corp 13,249 479,448
Lowe's Co Inc 121,059 7,180,312
May Department Stores Co 80,227 4,753,450
Newell Co 55,487 2,358,198
Nordstrom Inc 51,241 2,062,450
Penney (J C) Co Inc 86,954 3,141,213
Rite Aid Corp 88,890 3,677,824
Sears Roebuck & Co 131,764 5,352,913
Sherwin Williams Co 59,275 1,426,305
Staples Inc+ 160,014 4,705,420
Tandy Corp 34,018 1,892,251
TJX Companies Inc 110,837 3,165,782
Toys R Us Inc+ 90,058 1,272,069
</TABLE>
178
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
Walgreen Co 342,734 $ 10,967,488
WalMart Stores Inc 773,745 66,832,224
------------
TOTAL RETAIL & RELATED
- VALUE $216,711,183
- COST $129,837,297
SERVICES-0.16%
Block (H R) Inc 34,686 $ 1,573,877
Public Service Enterprise Group 78,639 2,988,282
Service Corp International 88,888 1,366,653
------------
TOTAL SERVICES
- VALUE $ 5,928,812
- COST $ 5,980,052
TELECOMMUNICATIONS-10.11%
Airtouch Communications+ 196,513 $ 17,894,965
Alltel Corp 94,192 5,639,746
Ameritech Corp 378,946 24,773,595
Andrew Corp+ 29,958 453,115
Ascend Communications Inc+ 74,376 5,722,304
AT & T Corp 620,398 50,950,209
Bell Atlantic Corp 533,223 30,626,996
BellSouth Corp 671,663 31,064,414
Frontier Corp 58,504 2,102,488
GTE Corp 331,566 21,510,344
Lucent Technologies Inc 451,742 45,880,047
MCI WorldCom Inc+ 629,764 51,955,530
NEXTEL Communications Class A+ 98,965 2,975,135
Northern Telecom Ltd 223,972 13,004,398
SBC Communication Inc 671,763 35,519,469
Scientific-Atlanta Inc 25,911 840,488
Sprint Corp 147,924 12,693,728
Sprint Corp (PCS Group)+ 144,169 4,613,408
Tellabs Inc+ 66,814 5,349,296
U.S. West Inc 172,767 9,210,641
------------
TOTAL TELECOMMUNICATIONS
- VALUE $372,780,316
- COST $216,959,379
</TABLE>
179
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
TEXTILES-0.01%
Springs Industries Inc Class A 6,323 $ 210,240
------------
TOTAL TEXTILES
- VALUE $ 210,240
- COST $ 257,099
TOBACCO-0.94%
Fortune Brands Inc 58,969 $ 1,776,441
Philip Morris Co Inc 836,135 32,713,782
------------
TOTAL TOBACCO
- VALUE $ 34,490,223
- COST $ 29,258,140
TRANSPORTATION-0.70%
Burlington Northern Santa Fe 161,139 $ 5,337,729
Carnival Corp Class A 204,207 9,087,212
CSX Corp 75,064 2,946,262
Laidlaw Inc Class B 113,589 873,215
Norfolk Southern Corp 130,297 3,656,460
Whitman Corp 78,000 1,209,000
Union Pacific Corp 84,967 3,982,828
------------
TOTAL TRANSPORTATION
- VALUE $ 25,883,706
- COST $ 25,297,077
UTILITIES-1.98%
AES Corp+ 61,496 $ 2,286,883
Ameren Corp 47,237 1,762,531
American Electric Power Inc 65,829 2,740,132
Baltimore Gas & Electric Co 51,369 1,316,331
Carolina Power & Light Co 52,116 2,078,126
Central & South West Corp 73,169 1,815,506
Cinergy Corp 54,690 1,596,264
Consolidated Edison Inc 80,152 3,747,106
Dominion Resources Inc 67,261 2,597,956
DTE Energy Co 49,909 1,971,406
Duke Power Co 124,394 7,074,909
Edison International 121,202 3,090,651
Entergy Corp 84,706 2,392,945
FirstEnergy Corp 80,784 2,362,932
FPL Group Inc 62,169 3,197,818
</TABLE>
180
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX MASTER PORTFOLIO--FEBRUARY 28,
1999
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Security Name Shares Value
<S> <C> <C>
COMMON STOCKS (Continued)
GPU Inc 44,040 $ 1,756,095
New Century Energies Inc 39,002 1,582,019
Niagara Mohawk Power Corp+ 64,631 945,228
Northern States Power Co 51,821 1,337,630
Pacificorp 102,402 1,836,836
PECO Energy Co 76,965 2,727,447
PG & E Corp 131,627 4,146,251
PP & L Resources Inc 52,270 1,332,885
Reliant Energy Inc 97,893 2,624,756
Sempra Energy 82,745 1,737,645
Southern Co 239,654 6,006,328
Texas Utilities Co 96,745 4,105,616
Unicom Corp 74,743 2,658,048
--------------
TOTAL UTILITIES
- VALUE $ 72,828,280
- COST $ 65,757,726
TOTAL COMMON STOCKS
- VALUE $3,469,052,921
- COST $2,326,715,872
</TABLE>
181
<PAGE>
MASTER INVESTMENT PORTFOLIO--S&P 500 INDEX
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity Principal/
Security Name Rate Date Shares Value
<S> <C> <C> <C> <C>
SHORT TERM INSTRUMENTS-10.45%
CASH EQUIVALENTS-2.24%
Dreyfus Institutional Money
Market Fund++ $ 937,119 $ 937,119
Janus International Money
Market Fund++ 63,300,000 63,300,000
Merrimac Cash Fund-Premium
Class++ 18,500,000 18,500,000
--------------
$ 82,737,119
U.S. TREASURY BILLS-0.46%
U.S. Treasury Bills 3.57** 03/25/99 $ 16,850,000 $ 16,804,938
--------------
REPURCHASE AGREEMENTS-7.75%
Morgan Stanley Triparty
Repurchase Agreement dated
2/26/99 due 3/1/99 with a
maturity value of
$286,086,410 and an
effective yield of 4.85%
collateralized by U.S.
Treasury Bonds with rates
ranging from 9.875% to
12.00%, maturity dates
ranging from 05/15/03 to
11/15/15, and aggregate
market value of
$105,479,493, U.S. Treasury
Notes with rates ranging
from 6.00% to 6.50%,
maturity dates ranging from
08/31/01 to 08/15/19 and an
aggregate market value of
110,650,813 and U.S.
Treasury Bills, with a yield
to maturity of 4.49%, a
maturity date of 05/23/99,
and a market value of
$75,568,681 $285,978,454 $ 285,978,454
--------------
TOTAL SHORT TERM INSTRUMENTS
- VALUE $ 385,520,511
- COST $ 385,512,686
TOTAL INVESTMENTS IN
SECURITIES
(Cost $2,712,228,558) *
(Notes 1 and 3) 104.54 % $3,854,573,432
Other Assets and Liabilities,
Net (4.54)% (167,480,654)
----- --------------
TOTAL NET ASSETS 100.00 % $3,687,092,778
====== ==============
- -------------------------------------------------------------------------------
</TABLE>
+ Non-income earning securities.
++ Represents collateral received from securities lending transactions. See
Note 4.
* Cost for federal income tax purposes is 2,713,771,575 and net unrealized ap-
preciation consists of:
** Yield to maturity
<TABLE>
<S> <C>
Gross Unrealized
Appreciation $1,196,082,998
Gross Unrealized
Depreciation (55,281,141)
--------------
NET UNREALIZED
APPRECIATION $1,140,801,857
==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
182
<PAGE>
MASTER INVESTMENT PORTFOLIO--U.S. TREASURY ALLOCATION MASTER PORTFOLIO--
FEBRUARY 28, 1999
MASTER INVESTMENT PORTFOLIO--U.S. TREASURY ALLOCATION
MASTER PORTFOLIO--FEBRUARY 28, 1999
Portfolio of Investments
<TABLE>
<CAPTION>
Interest Maturity
Principal Security Name Rate Date Value
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES-18.94%
U.S. TREASURY BONDS-18.94%
$ 900,000 U.S. Treasury Bonds 8.88% 02/15/19 $ 1,219,219
300,000 U.S. Treasury Bonds 8.13% 05/15/21 383,906
1,250,000 U.S. Treasury Bonds 7.63% 11/15/22 1,533,986
1,200,000 U.S. Treasury Bonds 7.25% 08/15/22 1,412,626
1,000,000 U.S. Treasury Bonds 6.88% 08/15/25 1,144,375
1,000,000 U.S. Treasury Bonds 6.13% 11/15/27 1,049,688
-----------
$ 6,743,800
TOTAL U.S. TREASURY SECURITIES $ 6,743,800
(Cost $7,037,359)
SHORT TERM INSTRUMENTS-83.99%
CASH EQUIVALENTS-3.10%
$ 2,500 Dreyfus Institutional
Money Market Fund+ $ 2,500
1,100,000 Janus International Money
Market Fund+ 1,100,000
-----------
$ 1,102,500
U.S. TREASURY BILLS-80.89%
$28,885,000 U.S. Treasury Bills 4.25%* 04/01/99 $28,769,893
36,000 U.S. Treasury Bills 4.80%* 05/13/99 35,669
-----------
$28,805,562
TOTAL SHORT TERM INSTRUMENTS $29,908,062
(Cost $29,909,143)
TOTAL INVESTMENT IN SECURITIES
(Cost $36,946,502) ** (Notes 1 and 3) 102.93% $36,651,862
Other Assets and Liabilities (2.93)% (1,041,604)
------ -----------
TOTAL NET ASSETS 100.00% $35,610,258
====== ===========
</TABLE>
- ------
+ Represents collateral received from securities lending transactions. See
Note 4.
* Yield to Maturity
** Cost for federal income tax purposes is $36,947,217 and net unrealized de-
preciation consists of:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ --
Gross Unrealized Depreciation (295,355)
---------
NET UNREALIZED DEPRECIATION $(295,355)
=========
</TABLE>
The accompanying notes are an integral part of these financial statements.
183
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
FEBRUARY 28, 1999
<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) $619,857,001 $431,750,346
Cash 0 0
Receivables:
Beneficial interests sold 0 0
Investments sold 264,390 0
Dividends and interest 1,469,415 4,658,968
Due from BGI (Note 2) 0 0
Total Assets 621,590,806 436,409,314
LIABILITIES
Payables:
Variation margin on futures
contracts 0 0
Investment securities purchased 271,150 0
Collateral for securities loaned
(Note 4) 22,079,841 34,661,200
Due to BGI (Note 2) 216,439 20,228
Total Liabilities 22,567,430 34,681,428
TOTAL NET ASSETS $599,023,376 $401,727,886
INVESTMENTS AT COST $483,325,301 $433,394,401
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
184
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Master Master Master
Investment Portfolio Investment Portfolio Investment Portfolio
LifePath 2000 LifePath 2010 LifePath 2020
Master Portfolio Master Portfolio Master Portfolio
- ----------------------------------------------------
<S> <C> <C>
$123,807,033 $260,646,485 $393,093,207
753 575 962
0 0 0
892,310 2,682,375 3,078,562
958,274 1,693,284 1,658,382
0 0 0
125,658,370 265,022,719 397,831,113
0 0 0
0 0 1,017,111
8,875,364 21,310,585 30,433,039
42,596 151,072 217,330
8,917,960 21,461,657 31,667,480
$116,740,410 $243,561,062 $366,163,633
$117,636,006 $227,114,593 $314,466,454
- ------------------------------------------------------------------------------------
</TABLE>
185
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999
<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) $293,572,849 $537,335,765
Cash 0 41
Receivables:
Beneficial interests sold 0 0
Investments sold 1,886,222 1,985,377
Dividends and interest 712,594 781,689
Due from BGI (Note 2) 0 0
Total Assets 296,171,665 540,102,872
LIABILITIES
Payables:
Variation margin on futures
contracts 0 0
Investment securities purchased 813,185 2,735,423
Collateral for securities loaned
(Note 4) 18,347,440 44,522,675
Due to BGI (Note 2) 180,622 325,889
Total Liabilities 19,341,247 47,583,987
TOTAL NET ASSETS $276,830,418 $492,518,885
INVESTMENTS AT COST $221,769,976 $412,290,662
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
186
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Master Master Master
Investment Portfolio Investment Portfolio Investment Portfolio
Money Market S&P 500 Index U.S. Treasury Allocation
Master Portfolio Master Portfolio Master Portfolio
- --------------------------------------------------
<S> <C> <C>
$264,510,078 $3,854,573,432 $36,651,862
0 0 282
0 184,800,000 0
0 0 0
1,075,020 3,990,156 59,871
63,692 0 743
265,648,790 4,043,363,588 36,712,758
0 1,533,119 0
3,002,469 271,774,548 0
0 82,737,119 1,102,500
0 226,024 0
3,002,469 356,270,810 1,102,500
$262,646,321 $3,687,092,778 $35,610,258
$264,510,078 $2,712,228,558 $36,946,502
- ----------------------------------------------------------------------------------
</TABLE>
187
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Master Master
Investment Portfolio Investment Portfolio
Asset Allocation Bond Index
Master Portfolio Master Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME
Dividends+ $ 5,940,051 $ 0
Interest++ 8,449,263 7,152,613
Total Investment Income 14,389,314 7,152,613
EXPENSES (NOTE 2)
Advisory fees 1,941,048 89,576
Total Expenses 1,941,048 89,576
NET INVESTMENT INCOME (LOSS) 12,448,266 7,063,037
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on sale of
investments 54,934,107 419,676
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized
appreciation (depreciation) of
investments 25,525,980 (4,365,016)
Net change in unrealized
appreciation (depreciation) of
futures contracts 0 0
Net Gain (Loss) on Investments 80,460,087 (3,945,340)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $92,908,353 $ 3,117,697
- -------------------------------------------------------------------------------
+ Net of foreign withholding tax $ 680 0
of:
++ Interest income includes $ 92,420 $ 24,075
securities lending income of:
</TABLE>
The accompanying notes are an integral part of these financial statements.
188
<PAGE>
STATEMENT OF OPERATIONS--FOR THE YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Master Master Master
Investment Investment Investment
Portfolio Portfolio Portfolio
LifePath LifePath LifePath
2000 2010 2020
Master Portfolio Master Portfolio Master Portfolio
- ----------------------------------------------------
<S> <C> <C>
$ 414,888 $ 1,679,143 $ 3,765,647
4,757,899 6,605,799 6,029,606
5,172,787 8,284,942 9,795,253
630,133 1,236,989 1,882,147
630,133 1,236,989 1,882,147
4,542,654 7,047,953 7,913,106
4,718,618 13,218,840 24,960,119
0 0 0
(1,372,957) 2,322,667 7,187,708
0 0 0
3,345,661 15,541,507 32,147,827
$ 7,888,315 $22,589,460 $40,060,933
- ------------------------------------------------------------------------------------------
$ 1,566 $ 3,647 $ 5,470
$ 23,722 $ 62,981 $ 110,958
</TABLE>
189
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Master Master
Investment Investment
Portfolio Portfolio
LifePath LifePath
2030 2040
Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME
Dividends+ $ 3,421,020 $ 6,932,033
Interest++ 2,457,292 559,542
Total Investment Income 5,878,312 7,491,575
EXPENSES (NOTE 2)
Advisory fees 1,405,948 2,472,170
Total Expenses 1,405,948 2,472,170
NET INVESTMENT INCOME (LOSS) 4,472,364 5,019,405
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on sale of
investments 17,728,114 34,827,042
Net realized gain (loss) on sale of futures
contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 10,724,507 23,947,962
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
Net Gain (Loss) on Investments 28,452,621 58,775,004
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $32,924,985 $63,794,409
- ------------------------------------------------------------------------------
+ Net of foreign withholding tax of: $ 6,903 $ 8,607
++ Interest income includes securities
lending income of: $ 95,289 $ 192,030
</TABLE>
The accompanying notes are an integral part of these financial statements.
190
<PAGE>
STATEMENT OF OPERATIONS--FOR THE YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
Master Master Master
Investment Portfolio Investment Portfolio Investment Portfolio
Money Market S&P 500 Index U.S. Treasury Allocation
Master Portfolio* Master Portfolio Master Portfolio
- ---------------------------------------------
<S> <C> <C>
$ 0 $ 36,647,898 $ 0
5,516,159 8,379,792 2,300,666
5,516,159 45,027,690 2,300,666
104,611 1,353,414 130,490
104,611 1,353,414 130,490
5,411,548 43,674,276 2,170,176
0 143,991,139 450,904
0 37,982,701 0
0 265,023,900 (417,682)
0 (14,225,550) 0
0 432,772,190 33,222
$5,411,548 $476,446,466 $2,203,398
- -----------------------------------------------------------------------------------
$ 0 $ 5,288 $ 0
$ 0 $ 78,935 $ 1,136
</TABLE>
* Period from September 1, 1998 (commencement of operations) to February 28,
1999.
191
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
Asset Allocation Master Portfolio
----------------------------------
For the For the
Year Ended Year Ended
February 28, February 28,
1999 1998
- -------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 12,448,266 $ 17,382,461
Net realized gain (loss) on sale of
investments 54,934,107 43,346,192
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 25,525,980 54,041,425
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
Net increase (decrease) in net assets
resulting from operations 92,908,353 114,770,078
Net increase (decrease) in net assets
resulting from beneficial interest
transactions (29,021,715) (11,593,179)
Increase (decrease) in Net Assets 63,886,638 103,176,899
NET ASSETS:
Beginning net assets $ 535,136,738 $ 431,959,839
Ending Net Assets $ 599,023,376 $ 535,136,738
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
192
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
Bond Index Master Portfolio
---------------------------------------------------------------------------
For the For the
Year Ended Year Ended
February 28, February 28,
1999 1998
- ---------------------------
<C> <S>
$ 7,063,037 $ 12,426,184
419,676 3,123,379
0 0
(4,365,016) 3,034,137
0 0
3,117,697 18,583,700
305,376,058 (146,679,073)
308,493,755 (128,095,373)
$ 93,234,131 $ 221,329,504
$ 401,727,886 $ 93,234,131
- -----------------------------------------------------------------------------
</TABLE>
193
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
LifePath 2000 Master Portfolio
-------------------------------
For the For the
Year Ended Year Ended
February 28, February 28,
1999 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 4,542,654 $ 5,325,967
Net realized gain (loss) on sale of
investments 4,718,618 5,800,419
Net realized gain (loss) on sale of futures
contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments (1,372,957) 3,089,773
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
Net increase (decrease) in net assets
resulting from operations 7,888,315 14,216,159
Net increase (decrease) in net assets
resulting from beneficial interest
transactions (7,346,906) (29,290,156)
Increase (decrease) in Net Assets 541,409 (15,073,997)
NET ASSETS:
Beginning net assets $ 116,199,001 $ 131,272,998
Ending net assets $ 116,740,410 $ 116,199,001
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
194
<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 For the For the For the
Year Ended Year Ended Year Ended Year Ended
February 28, February 28, February 28, February 28,
1999 1998 1999 1998
- -------------------------------------------------------
<C> <C> <C> <S>
$ 7,047,953 $ 6,460,247 $ 7,913,106 $ 7,680,647
13,218,840 9,734,287 24,960,119 16,445,704
0 0 0 0
2,322,667 16,696,571 7,187,708 39,706,672
0 0 0 0
22,589,460 32,891,105 40,060,933 63,833,023
12,753,903 5,815,674 (168,062) 10,995,106
35,343,363 38,706,779 39,892,871 74,828,129
$ 208,217,699 $ 169,510,920 $ 326,270,762 $ 251,442,633
$ 243,561,062 $ 208,217,699 $ 366,163,633 $ 326,270,762
- ------------------------------------------------------------------------------------
</TABLE>
195
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
LifePath 2030 Master Portfolio
-------------------------------
For the For the
Year Ended Year Ended
February 28, February 28,
1999 1998
- ----------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 4,472,364 $ 4,066,385
Net realized gain (loss) on sale of
investments 17,728,114 9,255,193
Net realized gain (loss) on sale
of futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 10,724,507 35,383,133
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
Net increase (decrease) in net assets
resulting from operations 32,924,985 48,704,711
Net increase (decrease) in net assets
resulting from beneficial interest
transactions 10,295,060 26,100,829
Increase (decrease) in Net Assets 43,220,045 74,805,540
NET ASSETS:
Beginning net assets $ 233,610,373 $ 158,804,833
Ending net assets $ 276,830,418 $ 233,610,373
- ----------------------------------------------------------------------
</TABLE>
*For the period from September 1, 1998 (commencement of operations) to February
28, 1999.
The accompanying notes are an integral part of these financial statements.
196
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio Master Investment Portfolio
LifePath 2040 Master Portfolio Money Market Master Portfolio
------------------------------------- -----------------------------
For the For the For the
Year Ended Year Ended Period Ended
February 28, February 28, February 28,
1999 1998 1999*
- -------------------------------------------------------
<C> <C> <S>
$ 5,019,405 $ 4,675,068 $ 5,411,548
34,827,042 26,380,392 0
0 14,539 0
23,947,962 58,037,494 0
0 (52,500) 0
63,794,409 89,054,993 5,411,548
23,995,369 57,589,386 257,234,773
87,789,778 146,644,379 262,646,321
$ 404,729,107 $ 258,084,728 $ 0
$ 492,518,885 $ 404,729,107 $262,646,321
- ----------------------------------------------------------------------------------
</TABLE>
197
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
S&P 500 Index Master Portfolio
-------------------------------
For the For the
Year Ended Year Ended
February 28, February 28,
1999 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 43,674,276 $ 35,530,147
Net realized gain (loss) on sale of
investments 143,991,139 52,551,777
Net realized gain (loss) on sale of futures
contracts 37,982,701 18,816,662
Net change in unrealized appreciation
(depreciation) of investments 265,023,900 452,651,075
Net change in unrealized appreciation
(depreciation) of futures contracts (14,225,550) 10,434,575
Net increase (decrease) in net assets
resulting from operations 476,446,466 569,984,236
Net increase (decrease) in net assets
resulting from beneficial interest
transactions 856,583,098 299,742,532
Increase (decrease) in Net Assets 1,333,029,564 869,726,768
NET ASSETS:
Beginning net assets $ 2,354,063,214 $ 1,484,336,446
Ending Net Assets $ 3,687,092,778 $ 2,354,063,214
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
198
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Master Investment Portfolio
U.S. Treasury Allocation
Master Portfolio
--------------------------------------------------------------------------
For the For the
Year Ended Year Ended
February 28, February 28,
1999 1998
- --------------------
<C> <S>
$ 2,170,176 $ 2,861,900
450,904 497,222
0 0
(417,682) 384,200
0 0
2,203,398 3,743,322
(13,799,138) (4,069,601)
(11,595,740) (326,279)
$ 47,205,998 $ 47,532,277
$ 35,610,258 $ 47,205,998
- -----------------------------------------------------------------------------
</TABLE>
199
<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, Money Market, S&P 500 Index, Extended Index, U.S. Equity Index
and U.S. Treasury Allocation Master Portfolios. The Money Market Master
Portfolio commenced operations on September 1, 1998, with the transfer of
$170,362,016 in securities from Money Market Fund, of the MasterWorks Funds,
Inc. These financial statements show all MIP's except Extended Index and U.S.
Equity Index 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
200
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
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.
The Money Market Master Portfolio uses the amortized cost method of valuation
to determine the value of its portfolio securities in accordance with rule 2a-7
under the 1940 Act. 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 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, except for the Money Market
Master Portfolio, 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
201
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
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 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 February 28, 1999, 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>
978 S&P 500 Index March 1999 $302,079,750 $(2,976,575)
</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 $9,828,900.
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 advisor to the Master
Portfolios may pool each Master
202
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
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 advisor'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
February 28, 1999 by the Master Portfolios are collateralized by U.S.
Government Securities.
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%, 0.10%, 0.05% and 0.30% of the average
daily net assets of the Asset Allocation, Bond Index, Money Market, 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 February 28, 1999, these officers of
Stephens indirectly collectively owned less than 1% of the Master Portfolios'
outstanding beneficial interests.
203
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
3. Investment Portfolio Transactions
Purchases and sales of investments, exclusive of short-term securities, for
each Master Portfolio for the year ended February 28, 1999 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 $ 59,762,796 $ 212,693,399 $52,774,360
Sales Proceeds 104,374,234 31,894,221 47,552,808
OTHER SECURITIES:
Purchases at cost $119,884,852 $ 109,813,822 $ 3,970,669
Sales proceeds 91,468,726 2,543,045 10,374,853
<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 $81,554,989 $ 89,496,463 $24,870,357
Sales proceeds 50,708,717 64,163,575 12,715,369
OTHER SECURITIES:
Purchases at cost 20,912,005 37,609,060 34,256,043
Sales proceeds 26,837,634 52,187,649 34,800,472
</TABLE>
<TABLE>
<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 $14,257,406 $ 0 $23,551,225
Sales proceeds 5,390,719 0 31,842,343
OTHER SECURITIES:
Purchases at cost $99,989,169 $1,187,951,471 $ 0
Sales proceeds 80,635,558 275,613,257 0
</TABLE>
204
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
4. Portfolio Securities Loaned
As of February 28, 1999, 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 risks to the Portfolios of securities lending are that the borrower may not
provide additional collateral when required or return the securities when due.
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 $21,228,889 $22,079,841
Bond Index Master Portfolio $33,624,016 $34,661,200
LifePath 2000 Master Portfolio $ 8,630,087 $ 8,875,364
LifePath 2010 Master Portfolio $20,553,970 $21,310,585
LifePath 2020 Master Portfolio $29,389,992 $30,433,039
LifePath 2030 Master Portfolio $17,703,645 $18,347,440
LifePath 2040 Master Portfolio $42,933,747 $44,522,675
S&P 500 Index Master Portfolio $80,346,100 $82,737,119
U.S. Treasury Allocation Master Portfolio $ 1,061,215 $ 1,102,500
</TABLE>
5. Financial Highlights
The portfolio turnover rates, excluding short-term securities, for the Master
Portfolios are as follows:
<TABLE>
<CAPTION>
For the
Period from
May 26, 1994
For the For the For the For the (commencement
Year Ended Year Ended Year Ended Year Ended of operations) to
February 28, February 28, February 28, February 29, February 28,
1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Allocation Master
Portfolio 33% 57% 43% 40% 23%
Bond Index Master
Portfolio 28% 59% 39% 21% 37%
LifePath 2000 Master
Portfolio 66% 39% 108% 84% 17%
LifePath 2010 Master
Portfolio 38% 46% 73% 39% 24%
LifePath 2020 Master
Portfolio 36% 41% 61% 49% 28%
LifePath 2030 Master
Portfolio 19% 27% 42% 39% 40%
LifePath 2040 Master
Portfolio 19% 34% 48% 29% 5%
S&P 500 Index Master
Portfolio 11% 6% 4% 2% 5%
U.S. Treasury Allocation
Master Portfolio 195% 76% 196% 325% 87%
</TABLE>
205
<PAGE>
Independent Auditors' Report
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees
Master Investment Portfolio:
We have audited the accompanying statements of assets and liabilities, includ-
ing the portfolios of investments, of Master Investment Portfolio (comprising
respectively, Asset Allocation Master Portfolio, Bond Index Master Portfolio,
LifePath 2000 Master Portfolio, LifePath 2010 Master Portfolio, LifePath 2020
Master Portfolio, LifePath 2030 Master Portfolio, LifePath 2040 Master Portfo-
lio, Money Market Master Portfolio, S&P 500 Index Master Portfolio, and U.S.
Treasury Allocation Master Portfolio) as of February 28, 1999, and the related
statements of operations for the year then ended, except for the Money Market
Master Portfolio which is for the period from September 1, 1998 (commencement
of operations) to February 28, 1999, the statements of changes in net assets
for each of the years in the two-year period then ended, except for the Money
Market Master Portfolio which is for the period from September 1, 1998 to Feb-
ruary 28, 1999, and the financial highlights for each of the years in the four-
year period then ended, except for the Money Market Master Portfolio which is
for the period from September 1, 1998 to February 28, 1999. These financial
statements and financial highlights are the responsibility of the Trust's man-
agement. Our responsibility is to express an opinion on these financial state-
ments and financial highlights based on our audits. All periods indicated in
Note 5 ending prior to March 1, 1995, were audited by other auditors whose re-
port dated April 20, 1995, expressed an unqualified opinion on this informa-
tion.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of Feb-
ruary 28, 1999 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement pre-
sentation. We believe that our audits provide a reasonable basis for our opin-
ion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned master portfolios of Master Investment Portfolio as of
February 28, 1999, the results of their operations, the changes in their net
assets and their financial highlights for the periods indicated, except as
noted above, in conformity with generally accepted accounting principles.
/s/ KPMG LLP
San Francisco, California
April 2, 1999
206
<PAGE>
MasterWorks(R) Funds
c/o Investors Bank and Trust Co.
200 Clarendon Street
Boston, MA 02111
MWAR.2/99
