<PAGE>
August 31, 1999
[logo]
STAGECOACH FUNDS-Registered Trademark-
Semi-Annual Report
LIFEPATH FUNDS-Trademark-
LifePath Opportunity Fund
LifePath 2010-Trademark- Fund
LifePath 2020-Trademark- Fund
LifePath 2030-Trademark- Fund
LifePath 2040-Trademark- Fund
<PAGE>
LifePath Funds TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS.................................1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
Performance Summary..................................5
Portfolio Review.....................................7
Strategic Overview...................................8
LIFEPATH FUNDS
Statement of Assets and Liabilities.................10
Statement of Operations.............................12
Statements of Changes in Net Assets.................14
Financial Highlights................................18
NOTES TO FINANCIAL STATEMENTS
Significant Accounting Policies.....................28
Agreements and Other Transactions
with Affiliates...................................30
Capital Share Transactions..........................32
Portfolio Securities Loaned.........................36
Subsequent Events...................................36
Shareholders Meeting and Proxy
Voting Results....................................37
LIFEPATH MASTER PORTFOLIOS
Schedule of Investments.............................38
Statement of Assets and Liabilities................114
Statement of Operations............................116
Statements of Changes in Net Assets................118
NOTES TO FINANCIAL STATEMENTS
Significant Accounting Policies....................122
Agreements and Other Transactions
with Affiliates..................................124
Investment Portfolio Transactions..................125
Portfolio Securities Loaned........................125
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<PAGE>
LETTER TO SHAREHOLDERS LifePath Funds
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TO OUR SHAREHOLDERS
Thank you for investing in the Stagecoach Funds.
It's a pleasure to provide you with the semi-annual report for the period
ended August 31, 1999. The report includes information about your investment
over the six-month period, including economic and market trends, a performance
summary, a portfolio review and a strategic outlook.
Several noteworthy events happened during the period, including the Dow
Jones Industrial Average surpassing 10,000 points for the first time in its
104-year history in March, and the Federal Reserve Board (the "Fed") raising
short-term interest rates twice between February 28, 1999, and August 31, 1999.
Despite the interest rate increases during the period, the stock market
continued to be strong. Earnings for U.S. companies were robust, we had a budget
surplus, inflation and unemployment remained low, and Americans seemed confident
about the future. We were also in the midst of a prolonged bull market, which
made U.S. capital markets attractive to investors both at home and abroad.
Investors can expect some potential volatility toward the end of the year due to
Y2K concerns. While U.S. companies generally have been preparing for the Year
2000, the effects of the Year 2000 can not be predicted.
The interest rate increases were good news for the bond markets, which had
discounted the Fed tightening in response to a strong economy before the rate
increases. The increases helped restore order to the bond market, which had seen
prices tumble and yields rise above 6% on the benchmark 30-year U.S. Treasury
bond. Higher bond yields briefly encouraged investors to switch from stocks to
the safety of bonds. With yields decreasing, calm and relative certainty
returned to both the stock and bond markets during the period.
The LifePath Funds are five of eight asset allocation funds within the
Stagecoach Fund family. Each Fund
1
<PAGE>
LifePath Funds LETTER TO SHAREHOLDERS
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offers a unique asset allocation strategy that may provide a solid foundation
for any investment portfolio. As you read through this report and review the
performance of the funds in your portfolio, we encourage you to keep long-term
goals in mind when making investment decisions. We recommend that you
continually review your investment portfolio with your financial consultant to
determine an appropriate mix of investments to meet your ongoing needs.
Thank you again for your continued investment with the Stagecoach Funds.
Sincerely,
/s/ Michael J. Hogan
Michael J. Hogan
Executive Vice President,
Mutual Fund Group
Wells Fargo Bank, N.A.
/s/ R. Greg Feltus
R. Greg Feltus
Chairman and President,
Stagecoach Funds
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3
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LifePath Funds INVESTMENT ADVISOR COMMENTARY
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LIFEPATH FUNDS
The LifePath Funds (the "Funds") are globally diversified asset allocation
mutual funds designed to maximize assets while gradually reducing the potential
for investment risk over specific investment time horizons.
Each LifePath Fund may be allocated across as many as 17 asset classes,
covering a variety of equity, fixed-income and cash indexes, including three
indexes that offer international exposure. Allocations among these asset classes
are determined by a proprietary investment model that examines a large amount of
information, including economic trends, pricing and other financial data.
The Funds are managed by Barclays Global Fund Advisors, one of the largest
providers of index products in the world.
FUND DATA (AS OF AUGUST 31, 1999)
- ----------------------------------------------------
<TABLE>
<CAPTION>
TOTAL ASSETS NET ASSET NET ASSET QUARTERLY
($MM) VALUE VALUE DIVIDEND
8/31/99 2/28/99 8/31/99 6/30/99
<S> <C> <C> <C> <C>
LIFEPATH OPPORTUNITY
CLASS A $ 53.1 $10.52 $10.52 $.089
LIFEPATH OPPORTUNITY
CLASS B $ 4.5 $10.61 $10.64 $.067
LIFEPATH OPPORTUNITY
CLASS C $ 8.5 $10.62 $10.65 $.069
LIFEPATH 2010
CLASS A $ 90.4 $13.27 $13.51 $.089
LIFEPATH 2010
CLASS B $ 24.5 $13.25 $13.51 $.065
LIFEPATH 2010
CLASS C $ 3.2 $13.29 $13.58 $.047
LIFEPATH 2020
CLASS A $168.2 $14.91 $15.49 $.070
LIFEPATH 2020
CLASS B $ 39.1 $14.79 $15.37 $.046
LIFEPATH 2020
CLASS C $ 1.4 $14.82 $15.43 $.028
LIFEPATH 2030
CLASS A $134.2 $17.15 $17.97 $.059
LIFEPATH 2030
CLASS B $ 31.7 $16.93 $17.74 $.033
LIFEPATH 2030
CLASS C $ 0.5 $16.94 $17.76 $.023
LIFEPATH 2040
CLASS A $272.7 $17.87 $19.01 $.031
LIFEPATH 2040
CLASS B $ 79.3 $17.52 $18.63 N/A
LIFEPATH 2040
CLASS C $ 4.5 $17.53 $18.64 N/A
</TABLE>
4
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INVESTMENT ADVISOR COMMENTARY LifePath Funds
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PERFORMANCE SUMMARY
The table on the previous page lists the net asset values of the LifePath
Funds. Because the longer-term LifePath Funds generally invest more heavily in
equity securities, they will tend to be more volatile than the Funds nearer
their target dates. For example, the LifePath 2040 Fund's Class A share net
asset value increased $1.14 during the six-month period, while the LifePath
Opportunity Fund's Class A share net asset value remained unchanged during the
same period. The LifePath 2040 Fund's Class A share distributed $0.04 per share
in dividend income and no capital gains during the period. The LifePath
Opportunity Fund's Class A shares distributed $0.17 per share in dividend income
and no capital gains during the period. In a period of high market volatility,
the Funds performed as expected, with the longer-term LifePath Funds
experiencing more price fluctuations than the shorter-term Funds. The LifePath
2040 Fund's Class A shares returned 6.60% and the LifePath Opportunity Fund's
Class A shares returned 1.63% during the six-month period, excluding sales
charges.
The Funds have three benchmarks representing each of the major asset classes
in which the Funds can invest. The S&P 500 Index(1) returned 7.32%, the Lehman
Brothers U.S. Treasury Bond Index(2) returned -0.59%, and the IBC All Taxable
Money Fund Average(3) returned 4.43% over the six-month period. All five
LifePath Funds outperformed their customized benchmarks during the period.
The strong performance of the large-cap U.S. equities contributed to the
success of the more aggressive funds, and the more conservative funds benefited
from heavy investments in short-term U.S. Treasury bonds, which performed better
than longer-term U.S. Treasury bonds during the period. Micro-cap stocks and
Japanese stocks in particular performed well during the period, while bonds
clearly suffered, especially long corporate bonds and U.S. Treasuries.
5
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LifePath Funds INVESTMENT ADVISOR COMMENTARY
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Large-cap U.S. equities had a positive effect on the performance of the
LifePath 2030 and 2040 Funds. Exposure to better-performing small- and mid-cap
U.S. equities, as well as international equities, helped the Funds outperform
their benchmarks. The LifePath 2020 and 2010 Funds also benefited from the
strong returns that characterized the U.S. equity market, but it was the Funds'
investments in short-term U.S. Treasury bonds that really paid off during the
period.
AVERAGE ANNUAL RETURNS(4) (AS OF AUGUST 31, 1999)
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<TABLE>
<CAPTION>
EXCLUDING SALES CHARGE
-----------------------------------------------------
6- YEAR-TO- 1- 5- SINCE
MONTH DATE YEAR YEAR INCEPTION
<S> <C> <C> <C> <C> <C>
LIFEPATH OPPORTUNITY
CL A 1.63 0.58 7.87 8.32 7.53
LIFEPATH OPPORTUNITY
CL B 1.34 0.30 7.25 7.82 7.02
LIFEPATH OPPORTUNITY
CL C 1.31 0.17 7.05 7.78 6.98
LIFEPATH 2010 CL A 3.09 2.32 16.42 12.97 11.81
LIFEPATH 2010 CL B 2.90 2.05 15.85 12.39 11.23
LIFEPATH 2010 CL C 2.85 2.00 15.78 12.38 11.22
LIFEPATH 2020 CL A 4.71 4.01 24.11 16.15 14.78
LIFEPATH 2020 CL B 4.44 3.67 23.55 15.56 14.19
LIFEPATH 2020 CL C 4.41 3.64 23.46 15.54 14.17
LIFEPATH 2030 CL A 5.27 4.35 28.77 18.45 16.81
LIFEPATH 2030 CL B 5.05 4.01 28.15 17.81 16.17
LIFEPATH 2030 CL C 5.02 3.98 28.07 17.80 16.16
LIFEPATH 2040 CL A 6.60 6.12 35.80 20.68 19.07
LIFEPATH 2040 CL B 6.34 5.73 35.07 20.00 18.39
LIFEPATH 2040 CL C 6.33 5.79 35.12 20.01 18.40
<CAPTION>
INCLUDING MAXIMUM SALES CHARGE(5)
-----------------------------------------------------
6- YEAR-TO- 1- 5- SINCE
MONTH DATE YEAR YEAR INCEPTION
<S> <C> <C> <C> <C> <C>
LIFEPATH OPPORTUNITY
CL A (4.21) (5.20) 1.67 7.04 6.38
LIFEPATH OPPORTUNITY
CL B (3.66) (4.67) 2.25 7.53 6.88
LIFEPATH OPPORTUNITY
CL C 0.31 (0.82) 6.05 7.78 6.98
LIFEPATH 2010 CL A (2.84) (3.59) 9.73 11.63 10.61
LIFEPATH 2010 CL B (2.10) (2.95) 10.85 12.14 11.12
LIFEPATH 2010 CL C 1.85 1.00 14.78 12.38 11.22
LIFEPATH 2020 CL A (1.31) (1.97) 16.97 14.78 13.55
LIFEPATH 2020 CL B (0.56) (1.33) 18.55 15.33 14.09
LIFEPATH 2020 CL C 3.41 2.64 22.46 15.54 14.17
LIFEPATH 2030 CL A (0.80) (1.67) 21.34 17.06 15.56
LIFEPATH 2030 CL B 0.05 (0.99) 23.15 17.61 16.08
LIFEPATH 2030 CL C 4.02 2.98 27.07 17.80 16.16
LIFEPATH 2040 CL A 0.47 (0.01) 27.96 19.26 17.79
LIFEPATH 2040 CL B 6.34 0.73 30.07 19.80 18.31
LIFEPATH 2040 CL C 5.33 4.79 34.12 20.01 18.40
</TABLE>
6
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INVESTMENT ADVISOR COMMENTARY LifePath Funds
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PORTFOLIO REVIEW
The Funds invest for higher returns early on, and will reallocate toward a
more conservative asset mix as their target date approaches. The LifePath
Opportunity Fund, for example, may be suitable for investors with shorter time
horizons. The LifePath Opportunity Fund began the period with an allocation of
20% stocks, 56% bonds and 24% cash as of February 28, 1999, and ended the period
with an allocation of 20% stocks, 62% bonds and 18% cash as of August 31, 1999.
Conversely, since the LifePath 2040 Fund has 41 years before reaching its target
date, and is appropriate for investors with longer time horizons, it maintained
a heavier weighting in stocks, ending the period with an allocation of
approximately 95% stocks, 4% bonds and 1% cash.
As the years go by, the Funds will continually progress to a more conservative
allocation. Forty years from now, the allocation of the LifePath 2040 Fund will
look very similar to the allocation of today's LifePath Opportunity Fund, with
adjustments for current economic and market conditions.
PORTFOLIO ALLOCATION(6) (AS OF AUGUST 31, 1999)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STOCKS BONDS CASH
<S> <C> <C> <C>
LifePath Opportunity 20% 62% 18%
LifePath 2010 43% 51% 6%
LifePath 2020 65% 31% 4%
LifePath 2030 80% 17% 3%
LifePath 2040 95% 4% 1%
</TABLE>
7
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LifePath Funds INVESTMENT ADVISOR COMMENTARY
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BREAKDOWN BY INDEXES(6) (AS OF AUGUST 31, 1999)
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<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH LIFEPATH LIFEPATH
ASSET CLASS OPPORTUNITY 2010 2020 2030 2040
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
U.S. TREASURY BILLS 17.96% 6.11% 3.71% 2.51% 0.58%
INTERMEDIATE GOVERNMENT 61.35% 51.16% 28.74% 6.74% 0.77%
LONG GOVERNMENT 0.30% 0.18% 2.54% 10.59% 2.80%
INTERMEDIATE CORPORATE 0.00% 0.00% 0.00% 0.00% 0.00%
LONG CORPORATE 0.00% 0.00% 0.00% 0.00% 0.00%
MORTGAGE BACKED SECURITIES 0.00% 0.00% 0.00% 0.00% 0.00%
LARGE VALUE 5.32% 13.81% 21.55% 26.21% 30.57%
LARGE GROWTH 5.15% 13.64% 22.97% 27.81% 35.18%
INTERMEDIATE VALUE 1.70% 2.00% 2.54% 3.39% 4.28%
INTERMEDIATE GROWTH 1.33% 1.59% 1.97% 2.68% 3.24%
INTERMEDIATE UTILITIES 0.29% 0.29% 0.54% 0.40% 0.46%
SMALL VALUE 0.31% 0.21% 0.25% 0.30% 0.33%
SMALL GROWTH 0.52% 0.47% 0.57% 0.72% 0.82%
MICRO 0.23% 0.27% 0.37% 0.45% 0.46%
NON-U.S. WGBI 0.00% 0.00% 0.00% 0.00% 0.00%
EAFE EX-JAPAN 4.28% 7.70% 10.55% 13.76% 15.46%
JAPAN 1.26% 2.56% 3.71% 4.45% 5.05%
- ---------------------------------------------------------------------------------------
TOTAL 100.00% 100.00% 100.00% 100.00% 100.00%
</TABLE>
STRATEGIC OVERVIEW
Positive economic news during the period, particularly regarding employment
and productivity, continued to spur the economy. In June and August, the Federal
Reserve Board (the "Fed") raised interest rates to stabilize economic growth.
Despite the interest rate increases during the period, the stock market
continued to be strong. The interest rate increases helped restore order to the
bond market, which had seen prices tumble and yields rise above 6% on the
benchmark 30-year U.S. Treasury bond, but even the brief rally after the Fed's
first interest rate increase in June could not improve bond market performance
overall during the period. Fortunately, the performance of the Fund's stock
investments made up for the performance of its bond investments during the
period.
8
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INVESTMENT ADVISOR COMMENTARY LifePath Funds
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The LifePath Funds' strategic and tactical models will continue to invest in
the U.S. and international stock markets, as these asset classes are still
considered a better value than money market investments over the long term. The
Funds are well positioned to take advantage of opportunities in the bond market
as well, should they become more attractive during the next six months.
- --------------------------------------------------
1 The "S&P 500 Index" is a trademark of Standard & Poor's Corporation. The S&P
500 Index is an unmanaged index of 500 widely held common stocks representing,
among others, industrial, financial, utility and transportation companies
listed or traded on national exchanges or over-the-counter markets.
2 The Lehman Brothers U.S. Treasury Bond Index is an unmanaged index comprised
of U.S. Treasury bonds with 10-year or longer maturities.
3 The IBC All Taxable Money Fund Average is an average of 936 money market funds
whose returns are subject to federal, state and local income taxes. The yields
are higher than those of tax-free funds because of the kinds of instruments in
which taxable funds can invest. The average is not available directly for
investment.
4 Figures quoted represent past performance, which is no guarantee of future
results. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. These reductions may be discontinued
at any time.
For the periods prior to March 1997, performance shown for the LifePath Funds
Class B shares, with the exception of the LifePath Opportunity Fund, reflects
the performance of the respective LifePath Funds Class A shares, adjusted to
reflect the expenses of Class B shares.
For the periods prior to August 1998, performance shown for the LifePath
Opportunity Fund Class B shares reflects the performance of the LifePath
Opportunity Fund Class A shares, adjusted to reflect the expenses of Class B
shares.
For the periods prior to July 1998, performance shown for the LifePath 2040
Fund Class C shares reflects the performance of the LifePath 2040 Fund
Class A shares, adjusted to reflect the expenses of Class C shares.
For the periods prior to December 1998, performance shown for the Class C
shares of the LifePath Opportunity, LifePath 2010, LifePath 2020, and LifePath
2030 Funds reflects the performance of the Class A shares for those Funds,
adjusted to reflect the expenses of Class C shares.
The LifePath Funds each invest in a corresponding master portfolio that
invests in individual securities. LifePath is a registered trademark of
Barclays Global Investors, N.A.
5 For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
contingent deferred sales charge for Class B shares is 5.00%. The maximum
contingent deferred sales charge for Class C shares is 1.00%.
6 Allocation percentages do not include repurchase agreements and money market
securities held by the Funds.
9
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LifePath Funds
STATEMENT OF ASSETS AND LIABILITIES - AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
OPPORTUNITY 2010
FUND FUND
<S> <C> <C>
ASSETS
INVESTMENT:
In corresponding Master
Portfolio, at market
value (Note 1) $66,222,967 $118,105,976
RECEIVABLES:
Receivable from WFB
(Note 2) 32,517 39,689
Fund shares sold 62,748 198,972
TOTAL ASSETS 66,318,232 118,344,637
LIABILITIES
PAYABLES:
Due to sponsor and
distributor 80,492 99,403
Capital shares redeemed 44,899 10,638
Due to Trustees 1,077 920
Accrued expenses 54,711 67,300
TOTAL LIABILITIES 181,179 178,261
TOTAL NET ASSETS $66,137,053 $118,166,376
NET ASSETS CONSIST OF:
Paid-in capital 60,995,045 96,152,706
Undistributed net
investment income 345,000 456,351
Undistributed net
realized gain (loss)
on investment 1,837,074 8,844,438
Net unrealized
appreciation
(depreciation) of
investments 2,959,934 12,712,881
TOTAL NET ASSETS 66,137,053 118,166,376
COMPUTATION OF NET ASSET
VALUE AND OFFERING
PRICE PER SHARE
Net Assets - Class A $53,116,656 $ 90,442,036
Shares outstanding -
Class A 5,050,051 6,692,104
Net asset Value -
Class A $ 10.52 $ 13.51
Offering price per share
- Class A* $ 11.16 $ 14.33
Net Assets - Class B $ 4,494,363 $ 24,477,781
Shares outstanding -
Class B 422,580 1,812,185
Net asset value and
offering price per
share - Class B $ 10.64 $ 13.51
Net Assets - Class C $ 8,526,034 $ 3,246,559
Shares outstanding -
Class C 800,207 239,104
Net asset value and
offering price per
share - Class C $ 10.65 $ 13.58
</TABLE>
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* MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
LifePath Funds
STATEMENT OF ASSETS AND LIABILITIES - AUGUST 31, 1999 (UNAUDITED)
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<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH
2020 2030 2040
FUND FUND FUND
<S> <C> <C> <C>
ASSETS
INVESTMENT:
In corresponding Master
Portfolio, at market
value (Note 1) $208,648,417 $166,572,301 $356,484,210
RECEIVABLES:
Receivable from WFB
(Note 2) 81,930 74,671 144,764
Fund shares sold 284,526 53,476 432,051
TOTAL ASSETS 209,014,873 166,700,448 357,061,025
LIABILITIES
PAYABLES:
Due to sponsor and
distributor 148,853 135,367 300,874
Capital shares redeemed 5,527 7,884 9,992
Due to Trustees 919 920 919
Accrued expenses 152,945 108,167 295,495
TOTAL LIABILITIES 308,244 252,338 607,280
TOTAL NET ASSETS $208,706,629 $166,448,110 $356,453,745
NET ASSETS CONSIST OF:
Paid-in capital 149,660,516 109,209,945 242,105,058
Undistributed net
investment income 506,191 222,149 (70,852)
Undistributed net
realized gain (loss)
on investment 17,046,754 18,883,804 29,858,647
Net unrealized
appreciation
(depreciation) of
investments 41,493,168 38,132,212 84,560,892
TOTAL NET ASSETS 208,706,629 166,448,110 356,453,745
COMPUTATION OF NET ASSET
VALUE AND OFFERING
PRICE PER SHARE
Net Assets - Class A $168,198,726 $134,225,727 $272,652,870
Shares outstanding -
Class A 10,860,648 7,467,941 14,340,401
Net asset Value -
Class A $ 15.49 $ 17.97 $ 19.01
Offering price per share
- Class A* $ 16.44 $ 19.07 $ 20.17
Net Assets - Class B $ 39,141,741 $ 31,675,292 $ 79,263,916
Shares outstanding -
Class B 2,547,460 1,785,378 4,253,813
Net asset value and
offering price per
share - Class B $ 15.37 $ 17.74 $ 18.63
Net Assets - Class C $ 1,366,162 $ 547,091 $ 4,536,959
Shares outstanding -
Class C 88,554 30,808 243,449
Net asset value and
offering price per
share - Class C $ 15.43 $ 17.76 $ 18.64
</TABLE>
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* MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
LifePath Funds
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
OPPORTUNITY 2010
FUND FUND
<S> <C> <C>
NET INVESTMENT INCOME
ALLOCATED FROM
MASTER PORTFOLIO
Dividends $ 114,981 $ 417,582
Interest 1,406,534 1,801,848
Expenses (184,531) (322,774)
NET INVESTMENT INCOME
ALLOCATED FROM
MASTER PORTFOLIO 1,336,984 1,896,656
EXPENSES
Administration fees 34,280 60,386
Shareholder servicing
fees - Class A 70,102 116,756
Shareholder servicing
fees - Class B 9,624 27,824
Shareholder servicing
fees - Class C 8,887 2,025
Transfer agency fees 38,674 75,413
Distribution Costs -
Class A 70,102 116,756
Distribution Costs -
Class B 14,481 83,472
Distribution Costs -
Class C 26,661 6,073
Legal and audit
services 16,740 16,740
Registration costs -
Class A 7,620 9,114
Registration costs -
Class B 6,510 7,440
Registration costs -
Class C 10,191 10,191
Compensation of
Trustees 2,232 2,232
Miscellaneous 16,646 16,646
TOTAL EXPENSES 332,750 551,068
Less expenses waived by
Wells Fargo Bank (53,756) (51,149)
TOTAL EXPENSES 278,994 499,919
NET INVESTMENT INCOME
(LOSS) 1,057,990 1,396,737
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
ALLOCATED FROM
MASTER
PORTFOLIOS
Net realized gain
(loss) on sale of
investments 736,316 6,358,914
Net change in
unrealized
appreciation
(depreciation) of
investments (768,729) (4,359,878)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $1,025,577 $3,395,773
</TABLE>
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The accompanying notes are an integral part of these financial statements.
12
<PAGE>
LifePath Funds
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH
2020 2030 2040
FUND FUND FUND
<S> <C> <C> <C>
NET INVESTMENT INCOME
ALLOCATED FROM
MASTER PORTFOLIO
Dividends $1,120,324 $1,098,707 $ 2,588,521
Interest 1,971,121 955,214 463,747
Expenses (578,663) (468,526) (985,019)
NET INVESTMENT INCOME
ALLOCATED FROM
MASTER PORTFOLIO 2,512,782 1,585,395 2,067,249
EXPENSES
Administration fees 108,042 87,279 184,625
Shareholder servicing
fees - Class A 218,783 174,975 348,300
Shareholder servicing
fees - Class B 43,429 37,332 93,775
Shareholder servicing
fees - Class C 827 387 5,005
Transfer agency fees 133,942 110,712 236,864
Distribution Costs -
Class A 218,783 174,975 348,300
Distribution Costs -
Class B 130,291 111,996 281,324
Distribution Costs -
Class C 2,480 1,161 15,016
Legal and audit
services 18,600 20,460 24,180
Registration costs -
Class A 15,810 12,834 18,600
Registration costs -
Class B 14,880 12,090 16,926
Registration costs -
Class C 10,191 10,191 16,926
Compensation of
Trustees 2,232 2,232 2,232
Miscellaneous 16,831 16,831 17,203
TOTAL EXPENSES 935,121 773,455 1,609,276
Less expenses waived by
Wells Fargo Bank (56,380) (59,705) (71,312)
TOTAL EXPENSES 878,741 713,750 1,537,964
NET INVESTMENT INCOME
(LOSS) 1,634,041 871,645 529,285
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
ALLOCATED FROM
MASTER
PORTFOLIOS
Net realized gain
(loss) on sale of
investments 13,117,356 15,800,306 26,438,587
Net change in
unrealized
appreciation
(depreciation) of
investments (5,854,156) (8,283,332) (5,878,395)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $8,897,241 $8,388,619 $21,089,477
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
LifePath Funds
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH OPPORTUNITY FUND
--------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, YEAR ENDED
1999 FEBRUARY 28,
UNAUDITED 1999
<S> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income
(loss) $ 1,057,990 $ 2,084,500
Net realized gain
(loss) on sale of
investments 736,316 3,019,339
Net change in
unrealized
appreciation
(depreciation) of
investments (768,729) (1,177,805)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 1,025,577 3,926,034
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class A (893,967) (2,170,495)
Class B (40,890) (5,044)*
Class C** (70,603) (1,953)
Institutional
Class*** 0 0
From net realized gain
on sale of
investments
Class A 0 (3,320,738)
Class B 0 (52,805)*
Class C** 0 (65,502)
Institutional
Class*** 0 (816)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares
sold - Class A 5,029,333 9,453,827
Reinvestment of
dividends - Class A 868,406 5,322,835
Cost of shares redeemed
- Class A (9,795,718) (24,139,883)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (3,897,979) (9,363,221)
Proceeds from shares
sold - Class B 2,458,503 3,167,735 *
Reinvestment of
dividends - Class B 39,426 56,110 *
Cost of shares redeemed
- Class B (1,164,508) (19,170)*
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 1,333,421 3,204,675 *
Proceeds from shares
sold - Class C** 3,957,286 4,874,851
Reinvestment of
dividends -
Class C** 59,940 47,033
Cost of shares redeemed
- Class C** (241,253) (75,349)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C** 3,775,973 4,846,535
Proceeds from shares
sold - Institutional
Class*** 0 0
Reinvestment of
dividends -
Institutional
Class*** 0 816
Cost of shares redeemed
- Institutional
Class*** 0 (15,138)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS*** 0 (14,322)
INCREASE (DECREASE) IN
NET ASSETS 1,231,532 (3,017,652)
NET ASSETS:
Beginning net assets 64,905,521 67,923,173
ENDING NET ASSETS $66,137,053 $ 64,905,521
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME
(LOSS) $ 345,000 $ 292,470
</TABLE>
- --------------------------------------------------------------------------------
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 1, 1998.
** THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 1, 1998 FOR ALL OF
THE FUNDS, WITH THE EXCEPTION OF LIFEPATH 2040, WHICH COMMENCED OPERATIONS
ON JULY 1, 1998.
*** THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 6, 1999.
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
LifePath Funds
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2010 FUND LIFEPATH 2020 FUND
-------------------------- --------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
AUGUST 31, YEAR ENDED AUGUST 31, YEAR ENDED
1999 FEBRUARY 28, 1999 FEBRUARY 28,
UNAUDITED 1999 UNAUDITED 1999
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income
(loss) $ 1,396,737 $ 2,417,067 $ 1,634,041 $ 2,897,313
Net realized gain
(loss) on sale of
investments 6,358,914 6,911,433 13,117,356 15,353,077
Net change in
unrealized
appreciation
(depreciation) of
investments (4,359,878) 205,255 (5,854,156) 2,752,974
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 3,395,773 9,533,755 8,897,241 21,003,364
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class A (1,145,012) (2,197,828) (1,333,299) (2,773,594)
Class B (198,574) (191,805) (166,249) (193,399)
Class C** (9,051) (155) (1,844) (1)
Institutional
Class*** 0 (699) 0 (1,220)
From net realized gain
on sale of
investments
Class A 0 (5,320,365) 0 (13,075,329)
Class B 0 (962,303) 0 (1,978,109)
Class C** 0 (3,893) 0 (4)
Institutional
Class*** 0 (1,053) 0 (1,585)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares
sold - Class A 10,918,931 13,690,774 24,233,710 19,089,185
Reinvestment of
dividends - Class A 1,111,027 7,366,734 1,315,602 15,740,947
Cost of shares redeemed
- Class A (12,883,803) (22,044,386) (29,339,532) (38,288,618)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (853,845) (986,878) (3,790,220) (3,458,486)
Proceeds from shares
sold - Class B 7,659,356 13,244,359 11,853,537 16,631,623
Reinvestment of
dividends - Class B 189,466 1,119,505 161,993 2,101,648
Cost of shares redeemed
- Class B (1,824,529) (2,444,836) (2,335,243) (2,530,778)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 6,024,293 11,919,028 9,680,287 16,202,493
Proceeds from shares
sold - Class C** 2,694,287 711,359 1,200,631 193,699
Reinvestment of
dividends -
Class C** 8,456 1,944 1,754 5
Cost of shares redeemed
- Class C** (126,593) (31,189) (25,612) 0
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C** 2,576,150 682,114 1,176,773 193,704
Proceeds from shares
sold - Institutional
Class*** 0 0 0 0
Reinvestment of
dividends -
Institutional
Class*** 0 1,751 0 2,804
Cost of shares redeemed
- Institutional
Class*** 0 (31,722) 0 (89,689)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS*** 0 (29,971) 0 (86,885)
INCREASE (DECREASE) IN
NET ASSETS 9,789,734 12,439,947 14,462,689 15,830,949
NET ASSETS:
Beginning net assets 108,376,642 95,936,695 194,243,940 178,412,991
ENDING NET ASSETS $118,166,376 $108,376,642 $208,706,629 $194,243,940
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME
(LOSS) $ 456,351 $ 412,251 $ 506,191 $ 373,542
</TABLE>
- --------------------------------------------------------------------------------
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 1, 1998.
** THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 1, 1998 FOR ALL OF
THE FUNDS, WITH THE EXCEPTION OF LIFEPATH 2040, WHICH COMMENCED OPERATIONS
ON JULY 1, 1998.
*** THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 6, 1999.
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
LifePath Funds
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2030 FUND
--------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, YEAR ENDED
1999 FEBRUARY 28,
UNAUDITED 1999
<S> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income
(loss) $ 871,645 $ 1,500,432
Net realized gain
(loss) on sale of
investments 15,800,306 11,793,389
Net change in
unrealized
appreciation
(depreciation) of
investments (8,283,332) 4,892,573
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 8,388,619 18,186,394
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class A (715,606) (1,462,037)
Class B (76,150) (104,378)
Class C** (604) 0
Institutional
Class*** 0 (559)
From net realized gain
on sale of
investments
Class A 0 (9,449,001)
Class B 0 (1,610,010)
Class C** 0 (3)
Institutional
Class*** 0 (1,567)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares
sold - Class A 8,512,710 20,226,565
Reinvestment of
dividends - Class A 706,683 10,816,180
Cost of shares redeemed
- Class A (15,444,146) (28,172,918)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (6,224,753) 2,869,827
Proceeds from shares
sold - Class B 7,195,471 12,693,677
Reinvestment of
dividends - Class B 74,315 1,681,154
Cost of shares redeemed
- Class B (1,955,623) (2,187,820)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 5,314,163 12,187,011
Proceeds from shares
sold - Class C** 488,065 92,434
Reinvestment of
dividends -
Class C** 548 4
Cost of shares redeemed
- Class C** (31,620) 0
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C** 456,993 92,438
Proceeds from shares
sold - Institutional
Class*** 0 0
Reinvestment of
dividends -
Institutional
Class*** 0 2,125
Cost of shares redeemed
- Institutional
Class*** 0 (51,813)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS*** 0 (49,688)
INCREASE (DECREASE) IN
NET ASSETS 7,142,662 20,658,427
NET ASSETS:
Beginning net assets 159,305,448 138,647,021
ENDING NET ASSETS $166,448,110 $159,305,448
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME
(LOSS) $ 222,149 $ 142,864
</TABLE>
- --------------------------------------------------------------------------------
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 1, 1998.
** THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 1, 1998 FOR ALL OF
THE FUNDS, WITH THE EXCEPTION OF LIFEPATH 2040, WHICH COMMENCED OPERATIONS
ON JULY 1, 1998.
*** THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 6, 1999.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
LifePath Funds
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2040 FUND
--------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, YEAR ENDED
1999 FEBRUARY 28,
UNAUDITED 1999
<S> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income
(loss) $ 529,285 $ 1,019,258
Net realized gain
(loss) on sale of
investments 26,438,587 25,933,476
Net change in
unrealized
appreciation
(depreciation) of
investments (5,878,395) 14,368,095
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 21,089,477 41,320,829
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class A (563,399) (1,148,509)
Class B 0 (31,745)
Class C** 0 0
Institutional
Class*** 0 (147)
From net realized gain
on sale of
investments
Class A 0 (21,855,410)
Class B 0 (4,844,750)
Class C** 0 (66,713)
Institutional
Class*** 0 (1,998)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares
sold - Class A 24,127,957 42,012,833
Reinvestment of
dividends - Class A 554,872 22,879,013
Cost of shares redeemed
- Class A (30,241,467) (63,023,916)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (5,558,638) 1,867,930
Proceeds from shares
sold - Class B 16,230,504 33,585,155
Reinvestment of
dividends - Class B 0 4,826,840
Cost of shares redeemed
- Class B (4,294,847) (7,422,017)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 11,935,657 30,989,978
Proceeds from shares
sold - Class C** 1,468,339 3,077,483
Reinvestment of
dividends -
Class C** 0 54,206
Cost of shares redeemed
- Class C** (216,975) (8,777)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C** 1,251,364 3,122,912
Proceeds from shares
sold - Institutional
Class*** 0 23
Reinvestment of
dividends -
Institutional
Class*** 0 2,145
Cost of shares redeemed
- Institutional
Class*** 0 (31,077)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS*** 0 (28,909)
INCREASE (DECREASE) IN
NET ASSETS 28,154,461 49,323,468
NET ASSETS:
Beginning net assets 328,299,284 278,975,816
ENDING NET ASSETS $356,453,745 $328,299,284
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME
(LOSS) $ (70,852) $ (36,738)
</TABLE>
- --------------------------------------------------------------------------------
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 1, 1998.
** THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 1, 1998 FOR ALL OF
THE FUNDS, WITH THE EXCEPTION OF LIFEPATH 2040, WHICH COMMENCED OPERATIONS
ON JULY 1, 1998.
*** THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 6, 1999.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
LifePath Funds FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
SIX
MONTHS ENDED
AUG. 31, 1999
(UNAUDITED)
-----------------------
CLASS CLASS CLASS
A B C
<S> <C> <C> <C>
- ---------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.52 $10.61 $10.62
------- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.18 0.13 0.13
Net realized and unrealized gain (loss) on
investments (0.01) 0.01 0.01
------- ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.17 0.14 0.14
LESS DISTRIBUTIONS:
From net investment income (0.17) (0.11) (0.11)
From net realized gains 0.00 0.00 0.00
------- ------ ------
TOTAL DISTRIBUTIONS (0.17) (0.11) (0.11)
------- ------ ------
NET ASSET VALUE, END OF PERIOD $ 10.52 $10.64 $10.65
======= ====== ======
TOTAL RETURN (NOT ANNUALIZED) 1.63% 1.34% 1.31%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000) $53,117 $4,494 $8,526
Number of shares outstanding, end of period
(000) 5,050 423 800
RATIOS TO AVERAGE NET ASSETS:(1)
Ratio of expenses to average net assets 1.30% 1.80% 1.80%
Ratio of net investment income (loss) to average
net assets 3.24% 2.71% 2.69%
Portfolio turnover(2) 32% 32% 32%
- ---------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 1.42% 2.20% 2.14%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 3.12% 2.31% 2.35%
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
* PERIOD FROM AUGUST 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
** PERIOD FROM DECEMBER 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
FINANCIAL HIGHLIGHTS LifePath Funds
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH OPPORTUNITY FUND
-----------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEB. 28, FEB. 28, FEB. 28, FEB. 29, FEB. 28,
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
CLASS CLASS CLASS CLASS CLASS CLASS CLASS
A B* C** A A A A
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.83 $10.91 $11.24 $10.71 $ 10.64 $ 9.92 $ 10.00
------- ------ ------ ------ ------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.36 0.07 0.04 0.43 0.42 0.40 0.34
Net realized and unrealized gain (loss) on
investments 0.32 0.29 (0.04) 0.81 0.28 0.86 (0.14)
------- ------ ------ ------ ------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.68 0.36 0.00 1.24 0.70 1.26 0.20
LESS DISTRIBUTIONS:
From net investment income (0.37) (0.04) (0.01) (0.44) (0.42) (0.41) (0.27)
From net realized gains (0.62) (0.62) (0.61) (0.68) (0.21) (0.13) (0.01)
------- ------ ------ ------ ------- -------- -------
TOTAL DISTRIBUTIONS (0.99) (0.66) (0.62) (1.12) (0.63) (0.54) (0.28)
------- ------ ------ ------ ------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 10.52 $10.61 $10.62 $10.83 $ 10.71 $ 10.64 $ 9.92
======= ====== ====== ====== ======= ======== =======
TOTAL RETURN (NOT ANNUALIZED) 6.40% 3.35% 0.02% 11.99% 6.74% 12.98% 2.10%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000) $56,986 $3,161 $4,758 $67,909 $84,949 $100,070 $54,617
Number of shares outstanding, end of period
(000) 5,416 298 448 6,272 7,934 9,406 5,503
RATIOS TO AVERAGE NET ASSETS:(1)
Ratio of expenses to average net assets 1.25% 1.70% 1.76% 1.20% 1.20% 1.20% 1.20%
Ratio of net investment income (loss) to average
net assets 3.27% 2.24% 2.27% 3.83% 3.93% 4.00% 4.62%
Portfolio turnover(2) 66% 66% 66% 39% 108% 84% 17%
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 1.31% 3.01% 2.66% N/A N/A N/A N/A
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 3.21% 0.93% 1.37% N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
* PERIOD FROM AUGUST 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
** PERIOD FROM DECEMBER 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
LifePath Funds FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ---------------------------------------------------
SIX
MONTHS ENDED
AUG. 31, 1999
(UNAUDITED)
------------------------
CLASS CLASS CLASS
A B C
<S> <C> <C> <C>
- ---------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 13.27 $ 13.25 $13.29
------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss) 0.17 0.13 0.09
Net realized and
unrealized gain (loss)
on investments 0.24 0.25 0.29
------- ------- ------
TOTAL FROM INVESTMENT
OPERATIONS 0.41 0.38 0.38
LESS DISTRIBUTIONS:
From net investment
income (0.17) (0.12) (0.09)
From net realized gains 0.00 0.00 0.00
------- ------- ------
TOTAL DISTRIBUTIONS (0.17) (0.12) (0.09)
------- ------- ------
NET ASSET VALUE, END OF
PERIOD $ 13.51 $ 13.51 $13.58
======= ======= ======
TOTAL RETURN (NOT
ANNUALIZED) 3.09% 2.90% 2.85%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of
period (000) $90,442 $24,478 $3,247
Number of shares
outstanding, end of
period (000) 6,692 1,812 239
RATIOS TO AVERAGE NET
ASSETS:(1)
Ratio of expenses to
average net assets 1.30% 1.80% 1.80%
Ratio of net investment
income (loss) to
average net assets 2.49% 1.97% 1.87%
Portfolio turnover(2) 31% 31% 31%
- ---------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses 1.36% 1.90% 3.05%
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed
expenses 2.43% 1.87% 0.62%
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
+ DISTRIBUTION WAS LESS THAN $.01 PER SHARE.
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 1, 1997.
** PERIOD FROM DECEMBER 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
FINANCIAL HIGHLIGHTS LifePath Funds
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2010 FUND
-----------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
FEB. 28, 1999 FEB. 28, 1998 FEB. 28, 1997 FEB. 29, 1996 FEB. 28, 1995
-------------------------- ---------------- ------------- ------------- -------------
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
A B C** A B* A A A
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 13.16 $ 13.10 $ 13.98 $ 12.20 $ 12.02 $ 11.42 $ 9.99 $ 10.00
------- ------- -------- ------- ------- ------------- ------------- -------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss) 0.32 0.22 0.04 0.36 0.19 0.34 0.32 0.34
Net realized and
unrealized gain (loss)
on investments 0.94 0.97 0.09 1.82 1.88 0.95 1.58 (0.02)
------- ------- -------- ------- ------- ------------- ------------- -------------
TOTAL FROM INVESTMENT
OPERATIONS 1.26 1.19 0.13 2.18 2.07 1.29 1.90 0.32
LESS DISTRIBUTIONS:
From net investment
income (0.33) (0.22) 0.00+ (0.38) (0.15) (0.34) (0.33) (0.28)
From net realized gains (0.82) (0.82) (0.82) (0.84) (0.84) (0.17) (0.14) (0.05)
------- ------- -------- ------- ------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS (1.15) (1.04) (0.82) (1.22) (0.99) (0.51) (0.47) (0.33)
------- ------- -------- ------- ------- ------------- ------------- -------------
NET ASSET VALUE, END OF
PERIOD $ 13.27 $ 13.25 $ 13.29 $ 13.16 $ 13.10 $ 12.20 $ 11.42 $ 9.99
======= ======= ======== ======= ======= ============= ============= =============
TOTAL RETURN (NOT
ANNUALIZED) 9.91% 9.30% 1.11% 18.45% 17.64% 11.60% 19.40% 3.31%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of
period (000) $89,543 $18,158 $ 675 $89,659 $ 6,248 $ 82,971 $ 67,178 $ 36,764
Number of shares
outstanding, end of
period (000) 6,750 1,371 51 6,815 477 6,801 5,883 3,679
RATIOS TO AVERAGE NET
ASSETS:(1)
Ratio of expenses to
average net assets 1.25% 1.76% 1.76% 1.20% 1.70% 1.20% 1.20% 1.20%
Ratio of net investment
income (loss) to
average net assets 2.42% 1.90% 2.04% 2.85% 2.15% 3.16% 3.06% 4.40%
Portfolio turnover(2) 38% 38% 38% 46% 46% 73% 39% 24%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses 1.28% 1.84% 7.72% N/A N/A N/A N/A N/A
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed
expenses 2.39% 1.82% (3.92)% N/A N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
+ DISTRIBUTION WAS LESS THAN $.01 PER SHARE.
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 1, 1997.
** PERIOD FROM DECEMBER 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
LifePath Funds FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------
SIX
MONTHS ENDED
AUG. 31, 1999
(UNAUDITED)
---------------------------
CLASS CLASS CLASS
A B C
<S> <C> <C> <C>
- ------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 14.91 $ 14.79 $ 14.82
-------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss) 0.13 0.08 0.06
Net realized and
unrealized gain (loss)
on investments 0.57 0.58 0.59
-------- ------- --------
TOTAL FROM INVESTMENT
OPERATIONS 0.70 0.66 0.65
LESS DISTRIBUTIONS:
From net investment
income (0.12) (0.08) (0.04)
From net realized gains 0.00 0.00 0.00
-------- ------- --------
TOTAL DISTRIBUTIONS (0.12) (0.08) (0.04)
-------- ------- --------
NET ASSET VALUE, END OF
PERIOD $ 15.49 $ 15.37 $ 15.43
======== ======= ========
TOTAL RETURN (NOT
ANNUALIZED) 4.71% 4.44% 4.41%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of
period (000) $168,199 $39,142 $ 1,366
Number of shares
outstanding, end of
period (000) 10,861 2,547 89
RATIOS TO AVERAGE NET ASSETS:(1)
Ratio of expenses to
average net assets 1.30% 1.80% 1.80%
Ratio of net investment
income (loss) to
average net assets 1.64% 1.13% 1.06%
Portfolio turnover(2) 29% 29% 29%
- ------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses 1.33% 1.89% 4.83%
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed
expenses 1.61% 1.04% (1.97)%
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
+ DISTRIBUTION WAS LESS THAN $.01 PER SHARE.
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 1, 1997.
** PERIOD FROM DECEMBER 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
FINANCIAL HIGHLIGHTS LifePath Funds
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 FUND
-----------------------------------------------------------------------------
YEAR YEAR YEAR
YEAR ENDED YEAR ENDED ENDED ENDED ENDED
FEB. 28, FEB. 28, FEB. 28, FEB. 29, FEB. 28,
1999 1998 1997 1996 1995
---------------------------- ----------------- -------- -------- --------
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
A B C** A B* A A A
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 14.70 $ 14.55 $ 15.82 $ 12.98 $ 12.79 $ 11.98 $ 10.17 $ 10.00
-------- ------- --------- -------- ------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss) 0.24 0.15 0.01 0.28 0.14 0.27 0.27 0.28
Net realized and
unrealized gain (loss)
on investments 1.47 1.48 0.22 2.73 2.74 1.43 2.03 0.12
-------- ------- --------- -------- ------- -------- -------- -------
TOTAL FROM INVESTMENT
OPERATIONS 1.71 1.63 0.23 3.01 2.88 1.70 2.30 0.40
LESS DISTRIBUTIONS:
From net investment
income (0.25) (0.15) 0.00+ (0.29) (0.12) (0.28) (0.28) (0.23)
From net realized gains (1.25) (1.24) (1.23) (1.00) (1.00) (0.42) (0.21) 0.00
-------- ------- --------- -------- ------- -------- -------- -------
TOTAL DISTRIBUTIONS (1.50) (1.39) (1.23) (1.29) (1.12) (0.70) (0.49) (0.23)
-------- ------- --------- -------- ------- -------- -------- -------
NET ASSET VALUE, END OF
PERIOD $ 14.91 $ 14.79 $ 14.82 $ 14.70 $ 14.55 $ 12.98 $ 11.98 $ 10.17
======== ======= ========= ======== ======= ======== ======== =======
TOTAL RETURN (NOT
ANNUALIZED) 12.02% 11.56% 1.70% 23.97% 23.05% 14.65% 22.94% 4.12%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of
period (000) $165,584 $28,467 $ 192 $166,198 $12,129 $146,226 $122,488 $66,036
Number of shares
outstanding, end of
period (000) 11,104 1,925 13 11,304 884 11,264 10,224 6,494
RATIOS TO AVERAGE NET ASSETS:(1)
Ratio of expenses to
average net assets 1.25% 1.76% 1.71% 1.20% 1.70% 1.20% 1.20% 1.20%
Ratio of net investment
income (loss) to
average net assets 1.61% 1.04% 0.76% 2.05% 1.33% 2.33% 2.45% 3.64%
Portfolio turnover(2) 36% 36% 36% 41% 41% 61% 49% 28%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses 1.26% 1.84% 52.02% N/A N/A N/A N/A N/A
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed
expenses 1.60% 0.96% (49.55)% N/A N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
+ DISTRIBUTION WAS LESS THAN $.01 PER SHARE.
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 1, 1997.
** PERIOD FROM DECEMBER 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
LifePath Funds FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------
SIX
MONTHS ENDED
AUG. 31, 1999
(UNAUDITED)
---------------------------
CLASS CLASS CLASS
A B C
<S> <C> <C> <C>
- ------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 17.15 $ 16.93 $ 16.94
-------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss) 0.10 0.05 0.04
Net realized and
unrealized gain (loss)
on investments 0.81 0.81 0.81
-------- ------- --------
TOTAL FROM INVESTMENT
OPERATIONS 0.91 0.86 0.85
LESS DISTRIBUTIONS:
From net investment
income (0.09) (0.05) (0.03)
From net realized gains 0.00 0.00 0.00
-------- ------- --------
TOTAL DISTRIBUTIONS (0.09) (0.05) (0.03)
-------- ------- --------
NET ASSET VALUE, END OF
PERIOD $ 17.97 $ 17.74 $ 17.76
======== ======= ========
TOTAL RETURN (NOT
ANNUALIZED) 5.27% 5.05% 5.02%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of
period (000) $134,226 $31,675 $ 547
Number of shares
outstanding, end of
period (000) 7,468 1,785 31
RATIOS TO AVERAGE NET ASSETS:(1)
Ratio of expenses to
average net assets 1.30% 1.80% 1.80%
Ratio of net investment
income (loss) to
average net assets 1.11% 0.60% 0.55%
Portfolio turnover(2) 14% 14% 14%
- ------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses 1.35% 1.90% 8.33%
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed
expenses 1.06% 0.50% (5.98)%
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
+ DISTRIBUTION WAS LESS THAN $.01 PER SHARE.
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 1, 1997.
** PERIOD FROM DECEMBER 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
FINANCIAL HIGHLIGHTS LifePath Funds
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2030 FUND
---------------------------------------------------------------------------
YEAR YEAR YEAR
ENDED ENDED ENDED
YEAR ENDED YEAR ENDED FEB. 28, FEB. 29, FEB. 28,
FEB. 28, 1999 FEB. 28, 1998 1997 1996 1995
--------------------------- ---------------- -------- -------- --------
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
A B C** A B* A A A
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 16.51 $16.28 $ 17.89 $ 13.83 $13.63 $ 12.34 $10.17 $ 10.00
-------- ------ --------- -------- ------ -------- ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss) 0.18 0.09 0.00 0.23 0.10 0.22 0.21 0.26
Net realized and
unrealized gain (loss)
on investments 1.93 1.92 0.31 3.54 3.50 1.83 2.45 0.13
-------- ------ --------- -------- ------ -------- ------ -------
TOTAL FROM INVESTMENT
OPERATIONS 2.11 2.01 0.31 3.77 3.60 2.05 2.66 0.39
LESS DISTRIBUTIONS:
From net investment
income (0.19) (0.10) 0.00+ (0.23) (0.09) (0.23) (0.22) (0.22)
From net realized gains (1.28) (1.26) (1.26) (0.86) (0.86) (0.33) (0.27) 0.00
-------- ------ --------- -------- ------ -------- ------ -------
TOTAL DISTRIBUTIONS (1.47) (1.36) (1.26) (1.09) (0.95) (0.56) (0.49) (0.22)
-------- ------ --------- -------- ------ -------- ------ -------
NET ASSET VALUE, END OF
PERIOD $ 17.15 $16.93 $ 16.94 $ 16.51 $16.28 $ 13.83 $12.34 $ 10.17
======== ====== ========= ======== ====== ======== ====== =======
TOTAL RETURN (NOT
ANNUALIZED) 13.25% 12.64% 1.98% 28.01% 26.93% 17.01% 26.53% 4.03%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of
period (000) $134,008 $25,206 $ 92 $126,131 $12,469 $101,078 $83,012 $41,153
Number of shares
outstanding, end of
period (000) 7,812 1,489 5 7,642 766 7,307 6,728 4,045
RATIOS TO AVERAGE NET ASSETS:(1)
Ratio of expenses to
average net assets 1.23% 1.75% 1.73% 1.20% 1.70% 1.20% 1.20% 1.20%
Ratio of net investment
income (loss) to
average net assets 1.07% 0.52% 0.16% 1.50% 0.76% 1.81% 1.92% 3.35%
Portfolio turnover(2) 19% 19% 19% 27% 27% 42% 39% 40%
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses 1.26% 1.84% 72.87% N/A N/A N/A N/A N/A
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed
expenses 1.04% 0.43% (70.98)% N/A N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
+ DISTRIBUTION WAS LESS THAN $.01 PER SHARE.
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 1, 1997.
** PERIOD FROM DECEMBER 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28,
1999.
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
LifePath Funds FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------
SIX
MONTHS ENDED
AUG. 31, 1999
(UNAUDITED)
---------------------------
CLASS CLASS CLASS
A B C
<S> <C> <C> <C>
- ------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 17.87 $ 17.52 $ 17.53
-------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss) 0.04 0.00 0.00
Net realized and
unrealized gain (loss)
on investments 1.14 1.11 1.11
-------- ------- --------
TOTAL FROM INVESTMENT
OPERATIONS 1.18 1.11 1.11
LESS DISTRIBUTIONS:
From net investment
income (0.04) 0.00 0.00
From net realized gains 0.00 0.00 0.00
-------- ------- --------
TOTAL DISTRIBUTIONS (0.04) 0.00 0.00
-------- ------- --------
NET ASSET VALUE, END OF
PERIOD $ 19.01 $ 18.63 $ 18.64
======== ======= ========
TOTAL RETURN (NOT
ANNUALIZED) 6.60% 6.34% 6.33%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of
period (000) $272,653 $79,264 $ 4,537
Number of shares
outstanding, end of
period (000) 14,340 4,254 243
RATIOS TO AVERAGE NET ASSETS:(1)
Ratio of expenses to
average net assets 1.30% 1.80% 1.80%
Ratio of net investment
income (loss) to
average net assets 0.41% (0.09)% (0.11)%
Portfolio turnover(2) 12% 12% 12%
- ------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses 1.32% 1.85% 2.64%
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed
expenses 0.39% (0.14)% (0.95)%
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
+ DISTRIBUTION WAS LESS THAN $.01 PER SHARE.
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 1, 1997.
** PERIOD FROM JULY 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1999.
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
FINANCIAL HIGHLIGHTS LifePath Funds
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2040 FUND
-----------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
FEB. 28, 1999 FEB. 28, 1998 FEB. 28, 1997 FEB. 29, 1996 FEB. 28, 1995
-------------------------- ---------------- ------------- ------------- -------------
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
A B C** A B* A A A
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 17.07 $16.76 $ 18.01 $ 14.50 $14.29 $ 12.84 $ 10.37 $ 10.00
-------- ------ -------- -------- ------ ------------- ------------- -------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss) 0.08 (0.01) (0.01) 0.13 0.03 0.16 0.15 0.18
Net realized and
unrealized gain (loss)
on investments 2.39 2.33 1.08 4.17 4.06 2.35 2.82 0.34
-------- ------ -------- -------- ------ ------------- ------------- -------------
TOTAL FROM INVESTMENT
OPERATIONS 2.47 2.32 1.07 4.30 4.09 2.51 2.97 0.52
LESS DISTRIBUTIONS:
From net investment
income (0.08) (0.01) 0.00+ (0.14) (0.03) (0.16) (0.16) (0.15)
From net realized gains (1.59) (1.55) (1.55) (1.59) (1.59) (0.69) (0.34) 0.00
-------- ------ -------- -------- ------ ------------- ------------- -------------
TOTAL DISTRIBUTIONS (1.67) (1.56) (1.55) (1.73) (1.62) (0.85) (0.50) (0.15)
-------- ------ -------- -------- ------ ------------- ------------- -------------
NET ASSET VALUE, END OF
PERIOD $ 17.87 $17.52 $ 17.53 $ 17.07 $16.76 $ 14.50 $ 12.84 $ 10.37
======== ====== ======== ======== ====== ============= ============= =============
TOTAL RETURN (NOT
ANNUALIZED) 14.98% 14.37% 6.40% 30.66% 29.47% 20.17% 28.91% 5.26%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of
period (000) $261,808 $63,395 $ 3,096 $248,195 $30,754 $ 189,560 $ 142,738 $ 56,737
Number of shares
outstanding, end of
period (000) 14,649 3,618 177 14,537 1,835 13,073 11,114 5,472
RATIOS TO AVERAGE NET ASSETS:(1)
Ratio of expenses to
average net assets 1.25% 1.75% 1.71% 1.20% 1.70% 1.20% 1.20% 1.20%
Ratio of net investment
income (loss) to
average net assets 0.42% (0.12)% (0.39)% 0.82% 0.08% 1.22% 1.29% 2.35%
Portfolio turnover(2) 19% 19% 19% 34% 34% 48% 29% 5%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed
expenses 1.26% 1.78% 4.71% N/A N/A N/A N/A N/A
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed
expenses 0.41% (0.15)% (3.39)% N/A N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
(1) THESE RATIOS INCLUDE EXPENSES CHARGED TO THE MASTER PORTFOLIO. ANNUALIZED
FOR PERIODS OF LESS THAN ONE YEAR.
(2) REPRESENTS THE PORTFOLIO TURNOVER OF EACH FUND'S MASTER PORTFOLIO.
+ DISTRIBUTION WAS LESS THAN $.01 PER SHARE.
* THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 1, 1997.
** PERIOD FROM JULY 1, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1999.
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
LifePath Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end management investment
company. The Trust was organized as a Massachusetts business trust pursuant to
an Agreement and Declaration of Trust dated October 18, 1993. The Trust
currently issues the following separate funds, which commenced operations on
March 1, 1994: LifePath Opportunity, formerly known as LifePath 2000, LifePath
2010, LifePath 2020, LifePath 2030 and LifePath 2040 (each, a "Fund,"
collectively, the "Funds"). The following significant accounting policies are
consistently followed by the Trust 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 revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Each Fund is authorized to issue three classes of shares: Class A, Class B and
Class C. LifePath Opportunity Class B shares commenced operations on August 1,
1998. Each Fund's Class C shares, with the exception of LifePath 2040 Class C
shares, commenced operations on December 1, 1998. LifePath 2040 Class C shares
commenced operations on July 1, 1998. On March 1, 1997, the Retail Class' name
was changed to Class A and all Funds, except Lifepath Opportunity, commenced
offering Class B shares. As of January 6, 1999 Institutional Class shares are no
longer offered by the Funds. The three classes of shares differ principally in
their respective distribution fees. Shareholders of each class bear certain
expenses that pertain to that particular class. All shareholders bear the common
expenses of the Fund and earn income from the portfolio, pro rata based on the
average daily net assets of each class. Dividends are determined separately for
each class based on income and expenses allocable to each class. Gains are
allocated to each class pro rata based upon net assets of each class on the date
of distribution. Neither class has preferential dividend rights; differences in
per share dividend rates are generally due to differences in separate class
expenses, including distribution fees and from the weightings of pro rata income
and gain allocations.
28
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) LifePath Funds
- ----------------------------------------------------------------------------
INVESTMENT POLICIES AND SECURITY VALUATION
Each Fund invests all of its assets in a separate series (each, a "Master
Portfolio") of Master Investment Portfolio ("MIP"). Each Master Portfolio has
the same investment objective as the Fund bearing the corresponding name, with
the exception of LifePath Opportunity Fund, whose corresponding Master Portfolio
is the LifePath 2000 Master Portfolio. 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 (57.08%, 45.62%, 54.36%, 59.64%, and 67.92%) for
the LifePath Opportunity, LifePath 2010, LifePath 2020, LifePath 2030 and
LifePath 2040 Funds, respectively, at August 31, 1999. The Master Portfolios
invest in a wide range of U.S. and foreign equity, debt securities and money
market instruments. Each Master Portfolio follows an asset allocation strategy
among three broad investing classes: equity and debt securities of issuers
located throughout the world and cash in the form of money market instruments.
The equity securities of the Master Portfolios are valued at the last reported
sale price on the primary securities exchange or national securities market on
which such securities are traded. Securities not listed on an exchange or
national securities market, or securities in which there was no last reported
sales price, are valued at the most recent bid prices. Debt securities are
generally traded in the over-the-counter market and are valued at a price deemed
best to reflect fair value as quoted by dealers who make markets in those
securities or by an independent pricing source. U.S. Government obligations are
valued at the last reported bid price. Debt securities maturing in 60 days or
less are valued at amortized cost, which approximates market value. Any
securities, restricted securities or other assets for which market quotations
are not readily available are valued at fair value as determined in good faith
in accordance with policies approved by the Master Portfolios' Board of
Trustees.
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
29
<PAGE>
LifePath Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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
Each Fund declares and pays dividends to shareholders from net investment
income quarterly. 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 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 August 31, 1999.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
On March 25, 1999, the Company entered into an Administration Agreement with
WFB on behalf of the Funds. Under the Administration Agreement, WFB will act as
sole Administrator of the Funds and is entitled to receive monthly fees at an
annual rate of 0.15% of the average daily net assets of the Funds. Prior to
March 25, 1999, the Company had entered into administration agreements on behalf
of the Funds whereby WFB as administrator and Stephens Inc. ("Stephens") as
co-administrator provided the Funds with administrative services. For these
services, WFB and Stephens were entitled to receive monthly fees at the annual
rates of 0.03% and 0.04%, respectively, of each Fund's average daily net assets.
On July 17, 1999, the Trust entered into an agreement with Boston Financial
Data Services ("BFDS"), replacing WFB as the transfer agent for the Company.
Under the transfer agency contract, BFDS is entitled to receive, on a monthly
basis, transfer agency fees based on the number of accounts and transactions of
each Fund. WFB will continue to provide sub-transfer agency services to the
Funds. Prior to July 17,1999, the Trust had entered into transfer and dividend
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) LifePath Funds
- ----------------------------------------------------------------------------
disbursing agency service arrangements with WFB. For providing the transfer and
dividend disbursing agency services, the Trust had agreed to pay a monthly fee
at the annual rate of 0.14% for Class A, Class B and Class C of each Fund's
average daily net assets.
On behalf of the Funds, the Trust may enter into servicing agreements with
certain financial institutions, securities dealers and other industry
professionals (collectively, "Shareholder Servicing Agents") for the provision
of certain services to Fund shareholders. For the services provided pursuant to
a Shareholder Servicing Agreement, Class A, Class B and Class C may pay each
Shareholder Servicing Agent a fee of up to 0.25% of the average daily net asset
value of each Fund's shares beneficially owned by customers of the Shareholder
Servicing Agent. The Trust has entered into a Shareholder Servicing Agreement
with Barclays Global Investors, N.A. ("BGI").
The Trust has entered into an agreement with Stephens on behalf of its shares
for distribution services and has adopted a Plan of Distribution pursuant to
Rule 12b-1 under the 1940 Act, whereby Stephens may be compensated for services
rendered and reimbursed for expenses incurred on behalf of the Class A, Class B
and Class C shares. For providing these services, Stephens is entitled to
receive 0.25% of the average daily net assets of Class A shares on an annual
basis and 0.75% of the average daily net assets of Class B and Class C shares on
an annual basis.
Certain officers and directors of the Trust are also officers of Stephens. At
August 31, 1999, these officers of Stephens collectively owned less than 1% of
the outstanding shares of each Fund.
Investors Bank & Trust Company ("IBT") serves as the Sub-Administrator to each
Fund. IBT is entitled to receive a separate fee from WFB for its services as
Sub-Administrator of the Funds.
31
<PAGE>
LifePath Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
3. CAPITAL SHARE TRANSACTIONS
As of August 31, 1999, the Trust has authorized an unlimited number of shares
of beneficial interest. Transactions in capital shares for each Fund were as
follows:
<TABLE>
<CAPTION>
LIFEPATH OPPORTUNITY FUND
-------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999
- -------------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 474,385 867,014
Shares issued in reinvestments of dividends -
Class A 82,079 499,441
Shares redeemed - Class A (922,354) (2,221,613)
NET DECREASE IN SHARES OUTSTANDING - CLASS A (365,890) (855,158)
Shares sold - Class B 229,157 294,447*
Shares issued in reinvestments of dividends -
Class B 3,681 5,288*
Shares redeemed - Class B (108,235) (1,758)*
NET INCREASE IN SHARES OUTSTANDING - CLASS B 124,603 297,977*
Shares sold - Class C 369,171 450,487**
Shares issued in reinvestments of dividends -
Class C 5,586 4,435**
Shares redeemed - Class C (22,483) (6,990)**
NET INCREASE IN SHARES OUTSTANDING - CLASS C 352,274 447,932**
Shares sold - Institutional Class*** 0 0
Shares issued in reinvestments of dividends -
Institutional Class*** 0 79
Shares redeemed - Institutional Class*** 0 (1,434)
NET DECREASE IN SHARES OUTSTANDING - INSTITUTIONAL
CLASS*** 0 (1,355)
</TABLE>
* Period from August 1, 1998 (Commencement of operations) to February 28, 1999
** Period from December 1, 1998 (Commencement of operations) to February 28,
1999
*** This class of shares ceased operation on January 6, 1999
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) LifePath Funds
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2010 FUND
-------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999
- -------------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 805,538 1,020,734
Shares issued in reinvestments of dividends -
Class A 81,793 560,450
Shares redeemed - Class A (945,197) (1,646,679)
NET DECREASE IN SHARES OUTSTANDING - CLASS A (57,866) (65,495)
Shares sold - Class B 561,612 992,503
Shares issued in reinvestments of dividends -
Class B 13,936 85,527
Shares redeemed - Class B (133,961) (184,348)
NET INCREASE IN SHARES OUTSTANDING - CLASS B 441,587 893,682
Shares sold - Class C 196,889 52,970*
Shares issued in reinvestments of dividends -
Class C 617 149*
Shares redeemed - Class C (9,209) (2,312)*
NET INCREASE IN SHARES OUTSTANDING - CLASS C 188,297 50,807*
Shares sold - Institutional Class** 0 0
Shares issued in reinvestments of dividends -
Institutional Class** 0 150
Shares redeemed - Institutional Class** 0 (2,676)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS** 0 (2,526)
</TABLE>
* Period from December 1, 1998 (Commencement of operations) to February 28,
1999
** This class of shares ceased operations on January 6, 1999
33
<PAGE>
LifePath Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 FUND
-------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999
- -------------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 1,560,199 1,264,123
Shares issued in reinvestments of dividends -
Class A 84,503 1,080,114
Shares redeemed - Class A (1,888,387) (2,544,176)
NET DECREASE IN SHARES OUTSTANDING - CLASS A (243,685) (199,939)
Shares sold - Class B 763,243 1,115,798
Shares issued in reinvestments of dividends -
Class B 10,456 145,849
Shares redeemed - Class B (151,020) (170,526)
NET INCREASE IN SHARES OUTSTANDING - CLASS B 622,679 1,091,121
Shares sold - Class C 77,093 12,981*
Shares issued in reinvestments of dividends -
Class C 112 0*
Shares redeemed - Class C (1,629) 0*
NET INCREASE IN SHARES OUTSTANDING - CLASS C 75,576 12,981*
Shares sold - Institutional Class** 0 0
Shares issued in reinvestments of dividends -
Institutional Class** 0 203
Shares redeemed - Institutional Class** 0 (6,383)
NET DECREASE IN SHARES OUTSTANDING - INSTITUTIONAL
CLASS** 0 (6,180)
</TABLE>
* Period from December 1, 1998 (Commencement of operations) to February 28,
1999
** This class of shares ceased operations on January 6, 1999
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) LifePath Funds
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2030 FUND
-------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999
- -------------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 469,105 1,172,524
Shares issued in reinvestments of dividends -
Class A 38,917 651,658
Shares redeemed - Class A (851,674) (1,654,268)
NET INCREASE/DECREASE IN SHARES OUTSTANDING -
CLASS A (343,652) 169,914
Shares sold - Class B 402,113 751,326
Shares issued in reinvestments of dividends -
Class B 4,120 102,843
Shares redeemed - Class B (109,556) (131,556)
NET INCREASE IN SHARES OUTSTANDING - CLASS B 296,677 722,613
Shares sold - Class C 27,068 5,432*
Shares issued in reinvestments of dividends -
Class C 30 0*
Shares redeemed - Class C (1,722) 0*
NET INCREASE IN SHARES OUTSTANDING - CLASS C 25,376 5,432*
Shares sold - Institutional Class** 0 0
Shares issued in reinvestments of dividends -
Institutional Class** 0 131
Shares redeemed - Institutional Class** 0 (3,060)
NET DECREASE IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS** 0 (2,929)
</TABLE>
* Period from December 1, 1998 (Commencement of operations) to February 28,
1999
** This class of shares ceased operations on January 6, 1999
35
<PAGE>
LifePath Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2040 FUND
-------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999
- -------------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 1,249,313 2,357,636
Shares issued in reinvestments of dividends -
Class A 28,634 1,345,789
Shares redeemed - Class A (1,586,380) (3,591,842)
NET INCREASE/DECREASE IN SHARES OUTSTANDING -
CLASS A (308,433) 111,583
Shares sold - Class B 866,334 1,928,530
Shares issued in reinvestments of dividends -
Class B 0 289,911
Shares redeemed - Class B (230,176) (435,742)
NET INCREASE IN SHARES OUTSTANDING - CLASS B 636,158 1,782,699
Shares sold - Class C 78,401 173,900*
Shares issued in reinvestments of dividends -
Class C 0 3,257*
Shares redeemed - Class C (11,599) (496)*
NET INCREASE IN SHARES OUTSTANDING - CLASS C 66,802 176,661*
Shares sold - Institutional Class** 0 0
Shares issued in reinvestments of dividends -
Institutional Class** 0 133
Shares redeemed - Institutional Class** 0 (1,768)
NET DECREASE IN SHARES OUTSTANDING - INSTITUTIONAL
CLASS** 0 (1,635)
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of August 31, 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's financial statements.
5. SUBSEQUENT EVENTS
On March 25, 1999, the Board of Directors of the Company approved the
reorganization of the Funds into new portfolios of Wells Fargo Funds Trust. The
reorganization is part of a larger plan to consolidate the Company with the
Norwest Advantage Funds following last November's merger of the parent companies
of their respective advisors - Wells Fargo & Company and Norwest Corporation.
* Period from July 1, 1998 (Commencement of operations) to February 28, 1999
** This class of shares ceased operations on January 6, 1999
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) LifePath Funds
- ----------------------------------------------------------------------------
SHAREHOLDERS' MEETING AND PROXY VOTING RESULTS
The required majority of shareholders of each Fund voted to approve the
reorganization of their Fund into a Fund of the Wells Fargo Funds Trust. The
reorganization is part of a larger plan to consolidate the Stagecoach Fund
family and the Norwest Advantage Fund family after the merger of Wells Fargo &
Company and Norwest Corporation in November, 1998. Under the reorganization,
each of the LifePath Funds listed below will transfer all of its assets and
liabilities to a corresponding Wells Fargo Funds Trust Fund.
<TABLE>
<CAPTION>
FUND FOR AGAINST ABSTAIN
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
LifePath Opportunity 2,740,525 193,422 216,512
LifePath 2010 3,861,387 99,471 313,520
LifePath 2020 5,442,943 176,608 468,472
LifePath 2030 3,617,890 159,374 308,798
LifePath 2040 6,686,118 320,256 590,579
</TABLE>
37
<PAGE>
LifePath Master Portfolios AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS
PERCENT OF NET ASSETS 20.40% 40.81%
LARGE CAP GROWTH STOCKS
PERCENT OF NET ASSETS 5.15% 13.07%
Abbott Laboratories 1,103 $ 47,843 7,354 $ 318,980
Adobe Systems Inc 112 11,158 538 53,598
Allergan Inc 55 5,493 379 37,853
Allied Signal Inc 492 30,135 3,425 209,781
America Online Inc+ 5,160 471,173 9,065 827,748
American Home Products
Corp 905 37,557 6,353 263,649
Ameritech Corp 899 56,749 5,372 339,107
Amgen Inc+ 274 22,793 2,258 187,837
Anheuser-Busch Inc 322 24,794 2,250 173,250
Applied Materials Inc+ 315 22,385 2,186 155,343
AT & T Corp 3,619 162,855 21,117 950,265
Automatic Data Processing 358 14,074 2,916 114,635
Avery-Dennison Corp 70 3,841 516 28,316
Avon Products Inc 80 3,510 1,409 61,820
Baxter International Inc 205 13,748 1,422 95,363
Bell Atlantic Corp 1,754 107,432 7,785 476,831
BellSouth Corp 1,800 81,450 11,779 533,000
Best Buy Co Inc+ 700 49,175 1,410 99,052
Bestfoods 221 10,857 1,389 68,235
Black & Decker Corp 116 6,104 516 27,155
BMC Software Inc+ 949 51,068 915 49,238
Boston Scientific Corp+ 212 7,195 1,811 61,461
Bristol-Myers Squibb Co 1,378 96,977 9,738 685,312
Campbell Soup Co 280 12,372 2,184 96,506
Capital One Financial
Corp -- -- 1,175 44,356
Ceridian Corp+ 92 2,576 604 16,912
Cisco Systems Inc+ 2,182 147,967 15,402 1,044,448
Clorox Co 466 21,086 1,110 50,227
Coca-Cola Co 1,817 108,679 12,184 728,756
Colgate-Palmolive Co 668 35,738 3,016 161,356
Computer Associates
International Inc 324 18,306 2,517 142,210
Compuware Corp+ 1,800 54,337 2,730 82,412
Corning Inc 185 12,302 988 65,702
Dell Computer Corp+ 1,932 94,306 12,374 604,006
Dollar General Corp 391 10,166 1,026 26,676
Dow Jones & Co Inc 94 4,723 548 27,537
Dun & Bradstreet Corp 75 1,964 610 15,974
Ecolab Inc 84 3,155 546 20,509
EMC Corp+ 646 38,760 4,810 288,600
Equifax Inc 61 1,860 600 18,300
</TABLE>
38
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS
PERCENT OF NET ASSETS 64.24% 77.96% 95.80%
LARGE CAP GROWTH STOCKS
PERCENT OF NET ASSETS 22.68% 27.02% 35.13%
Abbott Laboratories 22,416 $ 972,294 18,169 $ 788,080 44,037 $ 1,910,105
Adobe Systems Inc 903 89,961 842 83,884 1,974 196,660
Allergan Inc 869 86,791 793 79,201 1,878 187,565
Allied Signal Inc 8,616 527,730 7,622 466,847 16,337 1,000,641
America Online Inc+ 17,558 1,603,265 15,388 1,405,117 35,427 3,234,928
American Home Products
Corp 19,568 812,072 15,980 663,170 38,231 1,586,587
Ameritech Corp 16,263 1,026,602 13,121 828,263 31,919 2,014,887
Amgen Inc+ 7,590 631,393 6,012 500,123 14,616 1,215,869
Anheuser-Busch Inc 7,088 545,776 5,591 430,507 13,972 1,075,844
Applied Materials Inc+ 5,537 393,473 4,979 353,820 10,765 764,988
AT & T Corp 52,403 2,358,135 45,639 2,053,755 91,013 4,095,585
Automatic Data Processing 8,818 346,658 7,203 283,168 17,506 688,205
Avery-Dennison Corp 1,632 89,556 1,174 64,423 3,508 192,502
Avon Products Inc 3,911 171,595 3,130 137,329 7,569 332,090
Baxter International Inc 4,350 291,722 3,316 222,379 8,243 552,796
Bell Atlantic Corp 20,392 1,249,010 17,588 1,077,265 42,544 2,605,820
BellSouth Corp 29,881 1,352,115 26,755 1,210,664 57,738 2,612,644
Best Buy Co Inc+ 2,104 147,806 2,228 156,517 7,426 521,676
Bestfoods 4,505 221,308 3,456 169,776 8,219 403,758
Black & Decker Corp 1,422 74,833 1,244 65,466 2,629 138,351
BMC Software Inc+ 3,099 166,765 2,389 128,558 5,890 316,956
Boston Scientific Corp+ 5,747 195,039 4,739 160,830 11,448 388,517
Bristol-Myers Squibb Co 29,334 2,064,380 23,860 1,679,147 57,532 4,048,814
Campbell Soup Co 6,477 286,202 5,291 233,796 13,029 575,719
Capital One Financial
Corp 200 7,550 1,965 74,179 110 4,152
Ceridian Corp+ 2,332 65,296 1,668 46,704 4,256 119,168
Cisco Systems Inc+ 47,048 3,190,443 37,380 2,534,831 91,232 6,186,670
Clorox Co 3,684 166,701 2,472 111,858 6,832 309,148
Coca-Cola Co 36,832 2,203,014 29,532 1,766,383 71,405 4,270,912
Colgate-Palmolive Co 9,138 488,883 6,882 368,187 16,816 899,656
Computer Associates
International Inc 8,216 464,204 6,578 371,657 15,540 878,010
Compuware Corp+ 5,230 157,881 4,466 134,817 10,852 327,595
Corning Inc 3,358 223,307 2,863 190,389 6,756 449,274
Dell Computer Corp+ 37,816 1,845,893 30,528 1,490,148 74,062 3,615,151
Dollar General Corp 3,415 88,790 2,831 73,606 6,865 178,490
Dow Jones & Co Inc 1,400 70,350 1,289 64,772 2,515 126,379
Dun & Bradstreet Corp 2,556 66,935 2,113 55,334 4,841 126,774
Ecolab Inc 1,988 74,674 1,383 51,949 4,038 151,677
EMC Corp+ 15,096 905,760 12,088 725,280 29,002 1,740,120
Equifax Inc 2,299 70,119 1,606 48,983 4,266 130,113
</TABLE>
39
<PAGE>
LifePath Master Portfolios AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Fort James Corp 51 $ 1,645 1,001 $ 32,282
Freeport McMoRan Inc 16 257 647 10,392
Frontier Corp 250 10,484 925 38,792
Gap Inc 718 28,092 4,148 162,291
Gateway Inc+ 145 14,056 535 51,862
General Electric Co 3,103 348,506 16,122 1,810,702
General Mills Inc 155 12,981 667 55,861
Gillette Co 837 39,025 5,502 256,531
Grace (W R) Co+ 42 803 551 10,538
GTE Corp 1,156 79,330 4,663 319,998
Guidant Corp 157 9,214 1,538 90,261
Heinz (H J) Co 115 5,369 1,938 90,480
Hercules Inc 82 2,670 538 17,519
Hershey Foods Corp 159 8,516 590 31,602
Hilton Hotels Corp 164 2,009 1,211 14,835
Home Depot Inc 1,086 66,382 7,512 459,171
IMS Health Inc -- -- 1,564 43,205
Intel Corp 2,532 208,099 16,352 1,343,930
International Business
Machine Corp 1,480 184,352 9,264 1,153,947
Interpublic Group Co Inc 66 2,615 1,398 55,396
Johnson & Johnson 903 92,332 6,715 686,609
Jostens Inc 77 1,550 65 1,308
Kansas City Southern
Industries 643 29,779 1,341 62,105
Kellogg Co 246 8,748 1,874 66,644
Kimberly-Clark Corp 346 19,700 2,614 148,835
Kohls Corp+ 547 38,974 525 37,406
Kroger Co+ 362 8,371 4,342 100,409
Lexmark International
Group Class A+ 500 39,375 1,284 101,115
Lilly (Eli) & Co 804 59,999 5,441 406,035
Lucent Technologies Inc 2,313 148,177 14,500 928,906
Maytag Corp 96 6,012 434 27,179
McGraw-Hill Inc 312 16,126 1,250 64,609
McKesson HBOC Inc 655 20,387 2,062 64,180
Medtronic Inc 861 67,373 3,999 312,922
Merck & Co Inc 1,666 111,934 11,492 772,119
Microsoft Corp+ 3,626 335,632 24,394 2,257,970
Millipore Corp 42 1,585 151 5,700
Network Appliance Inc+ -- -- 604 39,675
Newell Rubbermaid Inc 205 8,405 1,387 56,867
NEXTEL Communications
Class A+ 178 10,291 1,655 95,680
Omnicom Group 211 15,904 615 46,356
Oracle Systems Corp+ 1,041 37,996 7,197 262,691
Owens Corning Fiberglass
Corp 18 506 191 5,372
</TABLE>
40
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Fort James Corp 3,294 $ 106,231 2,699 $ 87,043 6,203 $ 200,047
Freeport McMoRan Inc 2,748 44,140 2,317 37,217 5,171 83,059
Frontier Corp 2,357 98,847 2,009 84,252 4,757 199,497
Gap Inc 12,926 505,730 10,546 412,612 25,310 990,254
Gateway Inc+ 2,215 214,717 1,925 186,605 2,315 224,410
General Electric Co 48,614 5,459,960 39,308 4,414,780 94,712 10,637,341
General Mills Inc 2,240 187,600 1,722 144,217 4,527 379,136
Gillette Co 16,358 762,692 13,123 611,860 32,147 1,498,854
Grace (W R) Co+ 1,016 19,431 876 16,754 1,978 37,829
GTE Corp 12,677 869,959 10,929 750,003 26,307 1,805,318
Guidant Corp 4,674 274,305 3,434 201,533 8,751 513,574
Heinz (H J) Co 5,260 245,576 4,212 196,648 10,491 489,799
Hercules Inc 1,391 45,294 1,251 40,736 2,533 82,481
Hershey Foods Corp 2,068 110,767 1,639 87,789 4,283 229,408
Hilton Hotels Corp 3,592 44,002 2,713 33,234 7,203 88,237
Home Depot Inc 22,177 1,355,569 17,697 1,081,729 43,301 2,646,774
IMS Health Inc 4,955 136,882 3,820 105,527 9,265 255,946
Intel Corp 49,372 4,057,761 39,950 3,283,391 96,514 7,932,244
International Business
Machine Corp 27,620 3,440,416 22,426 2,793,439 54,206 6,752,035
Interpublic Group Co Inc 3,870 153,349 3,106 123,075 8,180 324,132
Johnson & Johnson 19,966 2,041,523 16,149 1,651,235 38,900 3,977,525
Jostens Inc 690 13,886 372 7,487 1,068 21,493
Kansas City Southern
Industries 2,112 97,812 2,024 93,736 6,323 292,834
Kellogg Co 5,946 211,455 4,820 171,411 11,918 423,834
Kimberly-Clark Corp 8,168 465,066 6,652 378,748 15,826 901,093
Kohls Corp+ 2,323 165,514 1,996 142,215 4,531 322,834
Kroger Co+ 13,020 301,087 10,068 232,822 23,918 553,104
Lexmark International
Group Class A+ 2,180 171,675 2,022 159,232 6,006 472,972
Lilly (Eli) & Co 16,348 1,219,970 13,042 973,259 31,820 2,374,568
Lucent Technologies Inc 44,877 2,874,933 35,863 2,297,473 86,433 5,537,114
Maytag Corp 1,189 74,461 1,044 65,381 2,459 153,995
McGraw-Hill Inc 3,160 163,333 2,604 134,594 5,890 304,439
McKesson HBOC Inc 4,257 132,499 3,803 118,368 9,179 285,696
Medtronic Inc 9,089 711,214 8,417 658,630 20,154 1,577,051
Merck & Co Inc 35,190 2,364,328 28,500 1,914,844 69,072 4,640,775
Microsoft Corp+ 73,970 6,846,848 59,786 5,533,942 144,132 13,341,218
Millipore Corp 688 25,972 486 18,346 1,318 49,754
Network Appliance Inc+ -- -- -- -- -- --
Newell Rubbermaid Inc 4,507 184,787 3,626 148,666 8,164 334,724
NEXTEL Communications
Class A+ 4,443 256,861 3,671 212,230 8,280 478,687
Omnicom Group 2,465 185,799 2,095 157,911 4,756 358,483
Oracle Systems Corp+ 21,748 793,802 17,449 636,889 42,300 1,543,950
Owens Corning Fiberglass
Corp 812 22,838 551 15,497 1,605 45,141
</TABLE>
41
<PAGE>
LifePath Master Portfolios AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Parametric Technology
Corp+ 20 $ 280 1,236 $ 17,304
Paychex Inc 848 24,963 1,122 33,029
PE Corp-PE Biosystems
Group 38 2,615 472 32,480
Peoplesoft Inc+ 575 8,122 1,145 16,173
Pepsico Inc 1,087 37,094 7,312 249,522
Pfizer Inc 3,205 120,989 18,582 701,470
Pioneer Hi Bred
International Inc 245 9,586 1,142 44,681
Pitney Bowes Inc 166 9,794 1,371 80,889
Procter & Gamble Co 988 98,059 6,404 635,597
Providian Financial Corp 177 13,740 567 44,013
Quaker Oats Co 102 6,815 513 34,275
Qualcom Inc+ 500 96,094 1,184 227,550
Ralston-Purina Group 95 2,613 1,598 43,945
Safeway Inc+ 1,598 74,407 3,243 151,002
Sara Lee Corp 551 12,225 4,446 98,646
SBC Communication Inc 1,326 63,648 9,622 461,856
Schering-Plough Corp 1,081 56,820 7,318 384,652
Schwab (Charles) Corp 194 7,663 4,090 161,555
Sealed Air Corp+ 177 10,399 405 23,794
SLM Holding Corp 135 5,965 575 25,408
Solectron Corp+ 1,200 93,900 1,778 139,128
Staples Inc+ 1,541 33,517 2,037 44,305
Sun Microsystems Inc+ 944 75,048 4,570 363,315
Sysco Corp 50 1,631 1,679 54,777
Tandy Corp 232 10,962 1,060 50,085
Tellabs Inc+ 174 10,364 1,652 98,397
Texas Instruments Inc 700 57,444 4,564 374,533
Time Warner Inc 1,274 75,564 7,731 458,545
Times Mirror Co Class A 117 6,757 324 18,711
TJX Companies Inc 76 2,194 1,646 47,528
Tricon Global
Restaurants+ 71 2,884 510 20,719
Tupperware Corp 63 1,421 380 8,574
Tyco International Ltd 737 74,689 4,477 453,576
U.S. West Inc 469 24,505 2,963 154,817
Unisys Corp+ 140 6,020 1,092 46,956
USAirways Group Inc+ 13 401 428 13,188
UST Inc 72 2,281 698 22,118
Walgreen Co 610 14,144 4,878 113,109
WalMart Stores Inc 3,396 150,485 22,216 984,447
Warner Lambert Co 557 36,901 4,132 273,745
Waste Management Inc 812 17,712 2,734 59,635
Wrigley (W M) Jr Co 134 10,494 529 41,427
Xerox Corp 730 34,857 3,212 153,373
----------- -----------
TOTAL LARGE CAP GROWTH
STOCKS
-VALUE $ 5,416,290 $29,315,452
-COST $ 2,631,442 $15,729,767
</TABLE>
42
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Parametric Technology
Corp+ 4,223 $ 59,122 3,419 $ 47,866 8,253 $ 115,542
Paychex Inc 3,439 101,236 2,920 85,958 7,097 208,918
PE Corp-PE Biosystems
Group 1,288 88,631 1,096 75,419 2,774 190,886
Peoplesoft Inc+ 3,430 48,449 2,695 38,067 6,670 94,214
Pepsico Inc 21,809 744,232 17,485 596,676 42,414 1,447,378
Pfizer Inc 57,315 2,163,641 46,909 1,770,815 112,730 4,255,557
Pioneer Hi Bred
International Inc 3,220 125,983 2,714 106,185 6,773 264,994
Pitney Bowes Inc 4,223 249,157 3,259 192,281 7,919 467,221
Procter & Gamble Co 19,693 1,954,530 16,022 1,590,183 38,476 3,818,743
Providian Financial Corp 2,018 156,647 1,519 117,912 4,230 328,354
Quaker Oats Co 1,920 128,280 1,510 100,887 4,084 272,862
Qualcom Inc+ 1,954 375,534 2,536 487,387 5,960 1,145,437
Ralston-Purina Group 5,011 137,802 3,570 98,175 9,139 251,322
Safeway Inc+ 7,060 328,731 5,953 277,187 11,589 539,613
Sara Lee Corp 13,659 303,059 10,826 240,202 26,534 588,723
SBC Communication Inc 29,077 1,395,696 23,367 1,121,616 56,575 2,715,600
Schering-Plough Corp 21,756 1,143,550 17,563 923,155 42,606 2,239,478
Schwab (Charles) Corp 11,860 468,470 9,654 381,333 23,236 917,822
Sealed Air Corp+ 1,132 66,505 849 49,879 2,418 142,057
SLM Holding Corp 2,570 113,562 2,070 91,468 4,730 209,007
Solectron Corp+ 3,566 279,039 3,120 244,140 7,416 580,302
Staples Inc+ 6,086 132,370 4,840 105,270 12,727 276,812
Sun Microsystems Inc+ 12,798 1,017,441 10,594 842,223 23,334 1,855,053
Sysco Corp 5,095 166,224 3,893 127,009 9,744 317,898
Tandy Corp 2,974 140,521 2,764 130,599 5,626 265,828
Tellabs Inc+ 5,664 337,362 4,712 280,659 11,256 670,436
Texas Instruments Inc 11,702 960,295 10,590 869,042 22,744 1,866,430
Time Warner Inc 19,373 1,149,061 16,794 996,094 34,952 2,073,091
Times Mirror Co Class A 1,084 62,601 849 49,030 2,281 131,728
TJX Companies Inc 5,083 146,772 3,714 107,242 9,427 272,205
Tricon Global
Restaurants+ 2,085 84,703 1,712 69,550 4,472 181,675
Tupperware Corp 1,026 23,149 814 18,366 1,967 44,380
Tyco International Ltd 12,663 1,282,920 10,318 1,045,342 24,166 2,448,321
U.S. West Inc 7,684 401,489 6,880 359,480 14,650 765,462
Unisys Corp+ 3,441 147,963 2,910 125,130 7,021 301,903
USAirways Group Inc+ 1,178 36,297 975 30,042 2,352 72,471
UST Inc 2,873 91,038 2,315 73,357 5,401 171,144
Walgreen Co 15,034 348,601 11,912 276,210 28,940 671,046
WalMart Stores Inc 66,960 2,967,165 54,110 2,397,749 130,648 5,789,340
Warner Lambert Co 12,556 831,835 10,209 676,346 24,412 1,617,295
Waste Management Inc 8,500 185,406 6,778 147,845 16,554 361,084
Wrigley (W M) Jr Co 1,784 139,710 1,179 92,330 3,524 275,973
Xerox Corp 8,600 410,650 7,444 355,451 17,970 858,067
----------- ----------- -----------
TOTAL LARGE CAP GROWTH
STOCKS
-VALUE $84,748,601 $69,577,679 $165,618,127
-COST $47,049,775 $37,622,660 $91,444,593
</TABLE>
43
<PAGE>
LifePath Master Portfolios AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
LARGE CAP VALUE STOCKS
PERCENT OF NET ASSETS 5.35% 13.30%
3Com Corp+ 390 $ 9,677 2,225 $ 55,208
ADC Telecommunications+ 572 21,200 1,261 46,736
Advanced Micro Devices+ 130 2,689 826 17,088
AES Corp+ -- -- 1,025 62,205
Aetna Inc 154 11,973 835 64,921
AFLAC Corp 1,392 62,553 2,877 129,285
Air Products & Chemicals
Inc 80 2,720 1,401 47,634
Alberto-Culver Co
Class B 92 2,340 455 11,574
Albertson's Inc 295 14,142 2,548 122,145
Alcan Aluminum Ltd 178 5,835 1,540 50,628
Alcoa Inc 388 25,050 2,340 151,076
Allegheny Teledyne Inc 183 3,420 1,158 21,640
Allied Waste Industries
Inc+ 300 3,825 1,070 13,642
Allstate Corp 924 30,319 5,012 164,456
Alltel Corp 149 10,076 1,622 109,688
ALZA Corp+ 87 4,383 464 23,374
Amerada Hess Corp 122 7,572 505 31,342
Ameren Corp 188 7,532 742 29,726
American Electric Power
Inc 136 4,938 1,165 42,304
American Express Corp 341 46,887 2,414 331,925
American General Corp 226 16,046 1,618 114,878
American Greetings Corp
Class A 123 3,406 480 13,290
American International
Group Inc 1,515 140,422 8,337 772,736
AMR Corp+ 244 14,304 1,067 62,553
Amsouth Bancorp 900 19,687 2,181 47,709
Anadarko Petroleum Corp 162 5,508 705 23,970
Andrew Corp+ 90 1,575 517 9,047
Aon Corp 254 8,477 1,543 51,481
Apache Corp 96 4,368 618 28,119
Apple Computer Inc+ 125 8,156 785 51,221
Archer-Daniels-Midland Co 740 9,623 3,888 50,550
Armstrong World
Industries Inc 92 4,468 284 13,792
ASARCO Inc 25 522 307 6,409
Ashland Inc 99 3,818 481 18,549
Associates First Capital
Corp 782 26,832 4,156 142,603
Atlantic Richfield Corp 233 20,489 1,935 170,159
Autodesk Inc 76 1,748 296 6,808
AutoZone Inc+ 126 3,000 851 20,264
Baker Hughes Inc 199 6,766 1,880 63,920
Ball Corp 44 1,977 281 12,627
Bank of America Corp 1,683 101,822 10,636 643,478
</TABLE>
44
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
LARGE CAP VALUE STOCKS
PERCENT OF NET ASSETS 21.36% 25.59% 30.67%
3Com Corp+ 5,917 $ 146,816 5,038 $ 125,005 10,361 $ 257,082
ADC Telecommunications+ 2,363 87,579 2,136 79,165 6,630 245,724
Advanced Micro Devices+ 2,482 51,346 1,907 39,451 3,889 80,454
AES Corp+ 2,891 175,448 2,330 141,402 5,045 306,168
Aetna Inc 2,268 176,337 2,001 155,578 4,309 335,025
AFLAC Corp 4,738 212,914 4,348 195,388 9,581 430,546
Air Products & Chemicals
Inc 3,750 127,500 3,032 103,088 6,531 222,054
Alberto-Culver Co
Class B 695 17,679 772 19,638 1,429 36,350
Albertson's Inc 6,923 331,871 5,796 277,846 12,453 596,966
Alcan Aluminum Ltd 3,930 129,199 3,194 105,003 6,302 207,178
Alcoa Inc 6,002 387,504 5,466 352,899 11,584 747,892
Allegheny Teledyne Inc 3,283 61,351 2,673 49,952 5,658 105,734
Allied Waste Industries
Inc+ 2,542 32,410 2,150 27,412 4,923 62,768
Allstate Corp 13,421 440,377 11,171 366,548 24,089 790,420
Alltel Corp 4,799 324,532 3,705 250,551 7,784 526,393
ALZA Corp+ 1,418 71,432 951 47,907 2,661 134,048
Amerada Hess Corp 1,594 98,928 1,231 76,399 2,373 147,274
Ameren Corp 2,146 85,974 1,895 75,918 4,050 162,253
American Electric Power
Inc 3,096 112,424 2,525 91,689 5,475 198,811
American Express Corp 7,147 982,713 5,758 791,725 14,656 2,015,200
American General Corp 4,132 293,372 3,466 246,086 7,268 516,028
American Greetings Corp
Class A 1,011 27,992 877 24,282 1,955 54,129
American International
Group Inc 24,707 2,290,030 19,687 1,824,739 49,262 4,565,972
AMR Corp+ 2,969 174,058 2,372 139,058 5,449 319,448
Amsouth Bancorp 3,540 77,437 3,230 70,656 9,210 201,469
Anadarko Petroleum Corp 1,932 65,688 1,663 56,542 3,442 117,028
Andrew Corp+ 1,524 26,670 1,010 17,675 2,363 41,352
Aon Corp 3,979 132,782 3,458 115,394 7,221 241,001
Apache Corp 1,606 73,073 1,238 56,329 2,579 117,344
Apple Computer Inc+ 2,252 146,943 1,908 124,497 3,789 247,232
Archer-Daniels-Midland Co 10,213 132,774 8,685 112,906 18,325 238,230
Armstrong World
Industries Inc 623 30,254 684 33,217 948 46,037
ASARCO Inc 700 14,613 436 9,102 1,010 21,084
Ashland Inc 1,085 41,840 985 37,984 1,984 76,508
Associates First Capital
Corp 11,117 381,452 9,264 317,871 19,811 679,765
Atlantic Richfield Corp 5,337 469,322 4,317 379,626 9,215 810,344
Autodesk Inc 461 10,603 459 10,557 1,267 29,141
AutoZone Inc+ 2,621 62,413 2,113 50,316 4,473 106,513
Baker Hughes Inc 5,188 176,392 4,296 146,064 13,601 462,434
Ball Corp 532 23,907 528 23,727 539 24,221
Bank of America Corp 28,114 1,700,897 23,327 1,411,284 50,332 3,045,086
</TABLE>
45
<PAGE>
LifePath Master Portfolios AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Bank of New York Inc 788 $ 28,171 4,589 $ 164,057
Bank One Corp 1,185 47,552 7,223 289,823
BankBoston Corp 222 10,309 1,729 80,290
Bard (C R) Inc 43 2,005 435 20,282
Barrick Gold Corp 423 8,196 2,288 44,330
Bausch & Lomb Inc 46 3,039 461 30,455
BB&T Corp 210 7,035 1,739 58,256
Bear Stearns Co Inc 189 7,867 750 31,219
Becton Dickinson & Co 78 2,194 1,524 42,862
Bemis Co 42 1,593 428 16,237
Berkshire Hathaway Inc
Class A+ -- -- 2 128,400
Berkshire Hathaway Inc
Class B+ 9 18,027 3 6,009
Bethlehem Steel Corp+ 117 899 593 4,559
Biomet Inc 112 4,004 576 20,592
Block (H R) Inc 105 5,841 588 32,708
Boeing Co 1,002 45,403 6,187 280,348
Boise Cascade Corp 59 2,146 473 17,205
Briggs & Stratton Corp 42 2,557 158 9,618
Brown-Forman Corp
Class B 64 3,760 418 24,558
Brunswick Corp 126 3,221 595 15,210
Burlington Northern Santa
Fe 478 13,862 2,839 82,331
Burlington Resources Inc 204 8,530 1,051 43,945
Cabletron Systems Inc+ 177 2,976 964 16,207
Canadian National Railway
Co 4 254 6 381
Cardinal Health Inc 721 45,964 1,932 123,165
Carnival Corp Class A 1,700 75,969 4,112 183,755
Carolina Power & Light Co 143 5,202 913 33,210
Case Corp 43 2,123 479 23,651
Caterpillar Inc 320 18,120 2,209 125,085
CBS Corp+ 760 35,720 4,272 200,784
Cendant Corp+ 852 15,283 5,272 94,566
Centex Corp 104 2,925 468 13,162
Central & South West Corp 170 3,846 1,308 29,594
CenturyTel Inc -- -- -- --
Champion International
Corp 122 6,710 561 30,855
Chase Manhattan 1,178 98,584 4,173 349,228
Chevron Corp 770 71,032 3,980 367,155
Chubb Corp 195 11,152 954 54,557
CIGNA Corp 217 19,489 1,263 113,433
Cincinnati Financial Corp 120 4,755 968 38,357
Cinergy Corp 157 4,769 957 29,069
Circuit City Stores Inc 254 10,922 1,138 48,934
Citigroup Inc 3,557 158,064 20,910 929,188
</TABLE>
46
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Bank of New York Inc 12,000 $ 429,000 10,171 $ 363,613 21,651 $ 774,023
Bank One Corp 19,066 765,023 15,817 634,657 33,887 1,359,716
BankBoston Corp 4,938 229,308 3,833 177,995 8,519 395,601
Bard (C R) Inc 793 36,974 887 41,356 1,551 72,315
Barrick Gold Corp 5,937 115,029 5,037 97,592 10,524 203,903
Bausch & Lomb Inc 725 47,895 765 50,538 1,415 93,478
BB&T Corp 4,664 156,244 3,737 125,189 8,089 270,981
Bear Stearns Co Inc 1,972 82,085 1,751 72,885 3,393 141,234
Becton Dickinson & Co 3,972 111,712 3,040 85,500 8,035 225,984
Bemis Co 760 28,833 782 29,667 1,389 52,695
Berkshire Hathaway Inc
Class A+ 4 256,800 4 256,800 8 513,600
Berkshire Hathaway Inc
Class B+ 21 42,063 4 8,012 19 38,057
Bethlehem Steel Corp+ 2,256 17,343 1,742 13,392 3,579 27,514
Biomet Inc 1,631 58,308 1,347 48,155 3,280 117,260
Block (H R) Inc 1,749 97,288 1,433 79,711 2,800 155,750
Boeing Co 16,648 754,363 13,842 627,216 29,705 1,346,008
Boise Cascade Corp 722 26,263 886 32,228 1,483 53,944
Briggs & Stratton Corp 452 27,516 459 27,942 654 39,812
Brown-Forman Corp
Class B 930 54,637 840 49,350 1,870 109,862
Brunswick Corp 1,722 44,019 1,245 31,825 2,545 65,057
Burlington Northern Santa
Fe 7,827 226,983 6,495 188,355 13,752 398,808
Burlington Resources Inc 2,913 121,800 2,284 95,500 4,922 205,801
Cabletron Systems Inc+ 2,689 45,209 2,082 35,004 4,051 68,107
Canadian National Railway
Co 12 763 11 699 23 1,462
Cardinal Health Inc 4,873 310,654 3,834 244,418 10,677 680,659
Carnival Corp Class A 7,610 340,072 6,699 299,362 11,828 528,564
Carolina Power & Light Co 2,619 95,266 2,164 78,716 4,414 160,559
Case Corp 1,068 52,733 1,001 49,424 1,888 93,220
Caterpillar Inc 6,030 341,449 5,168 292,638 10,594 599,885
CBS Corp+ 11,579 544,213 9,832 462,104 20,761 975,767
Cendant Corp+ 14,012 251,340 11,882 213,133 25,198 451,989
Centex Corp 770 21,656 699 19,659 1,577 44,353
Central & South West Corp 3,495 79,074 2,747 62,151 5,853 132,424
CenturyTel Inc 1,833 72,060 100 3,931 200 7,862
Champion International
Corp 1,602 88,110 1,328 73,040 2,514 138,270
Chase Manhattan 11,985 1,002,995 9,630 805,911 22,982 1,923,306
Chevron Corp 10,663 983,662 8,931 823,885 18,989 1,751,735
Chubb Corp 2,763 158,009 2,320 132,675 4,842 276,902
CIGNA Corp 3,481 312,637 2,936 263,690 6,150 552,347
Cincinnati Financial Corp 2,830 112,139 2,205 87,373 4,815 190,794
Cinergy Corp 2,676 81,284 2,026 61,540 4,484 136,202
Circuit City Stores Inc 3,396 146,028 2,776 119,368 5,250 225,750
Citigroup Inc 55,617 2,471,480 45,801 2,035,282 99,507 4,421,842
</TABLE>
47
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LifePath Master Portfolios AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Clear Channel
Communications Inc+ 243 $ 17,025 1,471 $ 103,062
CMS Energy Corp -- -- -- --
Coastal Corp 144 6,237 1,218 52,755
Coca-Cola Enterprises Co 1,036 29,461 2,205 62,705
Columbia Gas System Inc 142 8,357 542 31,982
Columbia/HCA Healthcare
Corp 650 16,006 4,084 100,569
Comcast Corp Class A 580 18,922 4,068 132,718
Comerica Inc 194 10,100 872 45,399
Compaq Computer Corp 1,777 41,204 10,227 237,139
Computer Sciences Corp+ 242 16,743 727 50,299
ConAgra Inc 858 21,021 2,372 58,114
Conoco Inc Class B -- -- 100 2,687
Conseco Inc 302 7,248 1,872 44,928
Consolidated Edison Inc 155 6,820 1,449 63,756
Consolidated Natural Gas
Co 122 7,770 511 32,544
Consolidated Stores Corp+ 158 2,548 678 10,933
Constellation Energy
Group 67 1,985 819 24,263
Cooper Industries Inc 123 6,381 734 38,076
Cooper Tire & Rubber Co 65 1,235 514 9,766
Coors (Adolph) Co
Class B 59 3,367 318 18,146
Costco Wholesale Corp+ 285 21,304 1,426 106,593
Countrywide Credit
Industries Inc 94 3,020 695 22,327
Crane Co 120 2,887 507 12,200
Crown Cork & Seal Co 65 1,727 714 18,966
CSX Corp 97 4,238 1,323 57,799
Cummins Engine Co Inc 25 1,481 288 17,064
CVS Corp 214 8,921 2,201 91,754
Cyprus Amax Minerals 170 2,879 555 9,400
Dana Corp 219 9,540 981 42,735
Danaher Corp 500 29,375 477 28,024
Darden Restaurants Inc 90 1,406 674 10,531
Data General Corp+ 4 74 424 7,818
Dayton-Hudson Corp 273 15,834 2,448 141,984
Deere & Co 189 7,347 1,694 65,854
Delphi Automotive Systems
Corp 531 9,956 2,781 52,144
Delta Air Lines Inc 252 12,805 953 48,424
Deluxe Corp 64 2,180 514 17,508
Dillards Inc Class A 118 2,773 598 14,053
Disney (Walt) Co 2,179 60,467 12,561 348,568
Dominion Resources Inc 198 9,157 1,165 53,881
Donnelley (R R) & Sons Co 139 4,361 745 23,374
Dover Corp 185 7,157 1,303 50,410
Dow Chemical Co 301 34,201 1,394 158,393
</TABLE>
48
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AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Clear Channel
Communications Inc+ 4,164 $ 291,740 3,412 $ 239,053 7,327 $ 513,348
CMS Energy Corp 1,352 53,488 100 3,956 200 7,912
Coastal Corp 3,527 152,763 2,790 120,842 6,065 262,690
Coca-Cola Enterprises Co 5,919 168,322 5,049 143,581 12,550 356,891
Columbia Gas System Inc 1,274 75,246 1,075 63,492 2,126 125,567
Columbia/HCA Healthcare
Corp 10,471 257,848 8,797 216,626 18,944 466,496
Comcast Corp Class A 11,540 376,492 9,194 299,954 23,780 775,823
Comerica Inc 2,717 141,454 2,210 115,058 4,534 236,051
Compaq Computer Corp 27,047 627,152 22,709 526,565 48,356 1,121,255
Computer Sciences Corp+ 2,292 158,578 1,811 125,299 4,412 305,255
ConAgra Inc 7,027 172,161 5,473 134,088 13,446 329,427
Conoco Inc Class B -- -- 100 2,687 -- --
Conseco Inc 5,011 120,264 4,155 99,720 8,925 214,200
Consolidated Edison Inc 3,803 167,332 3,137 138,028 6,653 292,732
Consolidated Natural Gas
Co 1,685 107,313 1,326 84,450 2,513 160,047
Consolidated Stores Corp+ 1,739 28,041 1,465 23,623 3,202 51,632
Constellation Energy
Group 2,573 76,225 2,079 61,590 4,247 125,817
Cooper Industries Inc 1,993 103,387 1,630 84,556 3,347 173,626
Cooper Tire & Rubber Co 1,101 20,919 918 17,442 1,987 37,753
Coors (Adolph) Co
Class B 533 30,414 651 37,148 799 45,593
Costco Wholesale Corp+ 3,543 264,839 2,809 209,973 6,176 461,656
Countrywide Credit
Industries Inc 1,867 59,977 1,561 50,147 3,184 102,286
Crane Co 1,017 24,472 816 19,635 1,922 46,248
Crown Cork & Seal Co 2,039 54,161 1,740 46,219 3,567 94,748
CSX Corp 3,523 153,911 2,858 124,859 6,262 273,571
Cummins Engine Co Inc 631 37,387 519 30,751 901 53,384
CVS Corp 6,083 253,585 5,008 208,771 12,720 530,265
Cyprus Amax Minerals 1,676 28,387 1,180 19,986 2,629 44,529
Dana Corp 2,760 120,233 2,183 95,097 4,672 203,524
Danaher Corp 1,263 74,201 965 56,694 4,381 257,384
Darden Restaurants Inc 2,279 35,609 1,851 28,922 4,203 65,672
Data General Corp+ 781 14,400 572 10,546 1,177 21,701
Dayton-Hudson Corp 6,911 400,838 5,541 321,378 14,255 826,790
Deere & Co 4,245 165,024 3,472 134,974 6,910 268,626
Delphi Automotive Systems
Corp 7,385 138,469 6,078 113,962 13,028 244,275
Delta Air Lines Inc 2,476 125,812 2,125 107,977 4,505 228,910
Deluxe Corp 1,191 40,568 1,067 36,345 1,984 67,580
Dillards Inc Class A 1,835 43,122 1,458 34,263 3,395 79,782
Disney (Walt) Co 33,323 924,713 27,874 773,503 59,323 1,646,213
Dominion Resources Inc 3,189 147,491 2,624 121,360 5,671 262,284
Donnelley (R R) & Sons Co 2,223 69,747 1,913 60,020 4,150 130,206
Dover Corp 3,672 142,061 2,898 112,116 7,244 280,252
Dow Chemical Co 3,681 418,254 2,953 335,535 6,482 736,517
</TABLE>
49
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
DTE Energy Co 218 $ 8,597 870 $ 34,311
Du Pont (E I) De Nemours 1,500 95,062 5,608 355,407
Duke Power Co 251 14,432 2,240 128,800
Eastern Enterprises 39 1,753 180 8,089
Eastman Chemical Co 114 5,294 511 23,730
Eastman Kodak Co 243 17,845 2,132 156,569
Eaton Corp 76 7,448 459 44,982
Edison International 337 8,551 2,183 55,394
EG&G Inc 25 795 333 10,594
Electronic Data Systems
Corp 568 31,879 2,875 161,359
Emerson Electric Co 565 35,383 2,293 143,599
Engelhard Corp -- -- 756 15,073
Enron Corp 476 19,932 3,976 166,495
Entergy Corp 150 4,472 1,531 45,643
Exxon Corp 2,957 233,233 16,278 1,283,927
FDX Corp+ 324 13,750 1,804 76,557
Federal Home Loan
Mortgage Corp 703 36,204 3,544 182,516
Federal National Mortgage
Assoc 1,021 63,430 6,304 391,636
Federated Department
Stores Inc+ 179 8,234 1,213 55,798
Fifth Third Bancorp 349 23,121 1,318 87,318
First Data Corp 353 15,532 2,715 119,460
First Union Corp 911 37,806 5,793 240,411
Firstar Corp 3,724 99,850 5,928 158,944
FirstEnergy Corp 160 4,570 1,415 40,416
Fleet Financial Group Inc 602 23,967 3,512 139,822
Fleetwood Enterprises Inc 32 652 313 6,377
Florida Progress Corp -- -- -- --
Fluor Corp 113 4,675 514 21,267
FMC Corp+ 2 116 223 12,990
Ford Motor Co 1,381 71,985 8,127 423,620
Fortune Brands Inc 180 6,750 1,051 39,413
Foster Wheeler Corp 142 1,837 316 4,088
FPL Group Inc 221 11,934 1,153 62,262
Franklin Resources Inc 328 11,787 1,300 46,719
Fruit of the Loom Inc
Class A+ 197 1,379 380 2,660
Gannett Co Inc 408 27,718 1,430 97,151
General Dynamics Corp 316 19,908 1,137 71,631
General Instrument Corp+ -- -- 585 28,775
General Motors Corp
Class A 761 50,321 4,052 267,939
Genuine Parts Co 79 2,281 1,069 30,867
Georgia-Pacific Corp 254 10,509 1,146 47,416
Golden West Financial 54 4,904 470 42,682
Goodrich (B F) Co 82 3,029 735 27,149
</TABLE>
50
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
DTE Energy Co 2,448 $ 96,543 2,032 $ 80,137 4,176 $ 164,691
Du Pont (E I) De Nemours 15,771 999,487 12,653 801,884 30,475 1,931,353
Duke Power Co 5,956 342,470 5,109 293,767 10,436 600,070
Eastern Enterprises 421 18,919 382 17,166 511 22,963
Eastman Chemical Co 1,185 55,028 1,065 49,456 1,970 91,482
Eastman Kodak Co 5,676 416,831 4,516 331,644 9,226 677,534
Eaton Corp 1,049 102,802 879 86,142 1,894 185,612
Edison International 5,822 147,733 4,970 126,114 10,207 259,003
EG&G Inc 752 23,923 618 19,660 1,117 35,535
Electronic Data Systems
Corp 8,026 450,459 6,626 371,884 14,175 795,572
Emerson Electric Co 6,150 385,144 4,986 312,248 11,948 748,244
Engelhard Corp 2,406 47,970 1,957 39,018 4,031 80,368
Enron Corp 10,650 445,969 9,102 381,146 18,680 782,225
Entergy Corp 3,945 117,610 3,309 98,650 6,824 203,441
Exxon Corp 42,176 3,326,632 34,411 2,714,168 70,642 5,571,888
FDX Corp+ 4,726 200,560 3,998 169,665 8,736 370,734
Federal Home Loan
Mortgage Corp 10,817 557,075 8,633 444,599 21,776 1,121,464
Federal National Mortgage
Assoc 16,881 1,048,732 14,123 877,391 29,981 1,862,570
Federated Department
Stores Inc+ 3,536 162,656 2,802 128,892 6,081 279,726
Fifth Third Bancorp 3,742 247,908 2,984 197,690 7,210 477,663
First Data Corp 7,193 316,492 6,059 266,596 12,874 566,456
First Union Corp 15,653 649,600 13,213 548,338 28,032 1,163,328
Firstar Corp 11,297 302,901 9,781 262,253 24,654 661,035
FirstEnergy Corp 3,920 111,965 3,185 90,972 6,725 192,083
Fleet Financial Group Inc 9,271 369,102 7,650 304,566 16,298 648,864
Fleetwood Enterprises Inc 508 10,351 465 9,474 800 16,300
Florida Progress Corp 1,457 68,297 -- -- 100 4,687
Fluor Corp 1,109 45,885 976 40,382 2,108 87,219
FMC Corp+ 618 35,998 576 33,552 733 42,697
Ford Motor Co 20,892 1,088,996 17,108 891,755 35,120 1,830,630
Fortune Brands Inc 2,884 108,150 2,219 83,212 4,827 181,012
Foster Wheeler Corp 617 7,982 478 6,184 899 11,631
FPL Group Inc 2,929 158,166 2,310 124,740 5,234 282,636
Franklin Resources Inc 2,663 95,702 2,859 102,745 5,220 187,594
Fruit of the Loom Inc
Class A+ 1,177 8,239 656 4,592 2,068 14,476
Gannett Co Inc 4,071 276,574 3,146 213,731 7,569 514,219
General Dynamics Corp 2,864 180,432 2,446 154,098 5,447 343,161
General Instrument Corp+ 2,535 124,690 2,030 99,851 200 9,837
General Motors Corp
Class A 10,667 705,355 8,899 588,446 19,015 1,257,367
Genuine Parts Co 2,869 82,842 2,228 64,334 4,991 144,115
Georgia-Pacific Corp 3,008 124,456 2,362 97,728 5,084 210,350
Golden West Financial 777 70,561 787 71,469 1,561 141,758
Goodrich (B F) Co 1,824 67,374 1,439 53,153 3,349 123,704
</TABLE>
51
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Goodyear Tire & Rubber Co 247 $ 13,863 925 $ 51,916
GPU Inc 122 4,163 718 24,502
Grainger (W W) Inc 72 3,136 554 24,134
Great Atlantic & Pacific
Tea Co 59 2,072 278 9,765
Great Lakes Chemical Corp 67 2,760 418 17,216
Halliburton Co 575 26,666 2,445 113,387
Harcourt General Inc 79 3,461 457 20,022
Harnischfeger Industries
Inc 50 72 185 266
Harrah's Entertainment
Inc+ 48 1,080 512 11,520
Harris Corp 104 2,730 607 15,934
Hartford Financial
Services Group 192 8,724 1,457 66,202
Hasbro Inc 167 4,081 1,225 29,936
HCR Manor Care Inc+ 101 1,976 651 12,735
Healthsouth Corp+ 500 4,094 2,510 20,551
Helmerich & Payne Inc 30 827 400 11,025
Hewlett-Packard Co 1,134 119,495 6,363 670,501
Homestake Mining Co 152 1,292 1,202 10,217
Honeywell Inc 164 18,614 784 88,984
Household International
Inc 549 20,725 2,911 109,890
Humana Inc+ 177 1,604 1,000 9,063
Huntington Bancshares Inc 108 3,233 1,299 38,889
Ikon Office Solutions Inc 124 1,380 673 7,487
Illinois Tool Works Inc 309 24,083 1,308 101,942
Inco Ltd 166 3,403 809 16,584
Ingersoll-Rand Co 172 10,944 1,080 68,715
International Flavor &
Fragrances 156 6,357 503 20,497
International Paper Co 328 15,437 2,456 115,585
ITT Industries Inc 126 4,260 731 24,717
Jefferson-Pilot Corp 140 9,345 618 41,252
Johnson Controls Inc 86 5,880 465 31,794
K Mart Corp+ 584 7,336 2,962 37,210
Kaufman & Broad Home Corp 49 1,001 298 6,090
Kerr-McGee Corp 97 5,432 418 23,408
Keycorp 454 13,166 2,503 72,587
Kingworld Productions+ 94 3,584 455 17,347
KLA Instruments Corp+ 94 5,904 501 31,469
Knight-Ridder Inc 124 6,688 562 30,313
Laidlaw Inc Class B 395 2,469 1,844 11,525
Lehman Brothers Holdings 180 9,675 750 40,312
Limited Inc 197 7,461 1,414 53,555
Lincoln National Corp 248 11,625 1,242 58,219
Liz Claiborne Inc 81 2,977 455 16,721
Lockheed Martin Corp 410 15,170 2,433 90,021
</TABLE>
52
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Goodyear Tire & Rubber Co 2,758 $ 154,793 2,247 $ 126,113 4,736 $ 265,808
GPU Inc 2,052 70,025 1,771 60,435 3,702 126,331
Grainger (W W) Inc 1,672 72,837 1,355 59,027 2,586 112,653
Great Atlantic & Pacific
Tea Co 617 21,672 607 21,321 817 28,697
Great Lakes Chemical Corp 780 32,126 740 30,479 1,577 64,953
Halliburton Co 6,164 285,856 4,961 230,066 12,139 562,946
Harcourt General Inc 994 43,550 896 39,256 1,828 80,089
Harnischfeger Industries
Inc 933 1,341 704 1,012 1,480 2,128
Harrah's Entertainment
Inc+ 1,662 37,395 1,252 28,170 2,653 59,693
Harris Corp 1,220 32,025 1,063 27,904 1,912 50,190
Hartford Financial
Services Group 3,800 172,663 3,156 143,401 6,700 304,431
Hasbro Inc 3,192 78,005 2,653 64,833 5,601 136,875
HCR Manor Care Inc+ 1,834 35,878 1,517 29,676 4,512 88,266
Healthsouth Corp+ 6,837 55,978 5,824 47,684 11,705 95,835
Helmerich & Payne Inc 805 22,188 640 17,640 1,275 35,142
Hewlett-Packard Co 16,975 1,788,741 14,231 1,499,592 30,059 3,167,467
Homestake Mining Co 3,456 29,376 2,776 23,596 5,531 47,013
Honeywell Inc 2,099 238,236 1,842 209,067 3,607 409,394
Household International
Inc 7,963 300,603 6,642 250,736 14,321 540,618
Humana Inc+ 2,672 24,215 2,207 20,001 4,345 39,377
Huntington Bancshares Inc 3,810 114,062 2,954 88,435 6,507 194,803
Ikon Office Solutions Inc 2,471 27,490 1,805 20,081 3,711 41,285
Illinois Tool Works Inc 3,597 280,341 2,819 219,706 6,797 529,741
Inco Ltd 2,605 53,402 2,235 45,817 4,363 89,441
Ingersoll-Rand Co 2,962 188,457 2,327 148,055 4,692 298,529
International Flavor &
Fragrances 1,564 63,733 1,098 44,743 2,904 118,338
International Paper Co 6,588 310,048 5,695 268,021 11,824 556,467
ITT Industries Inc 2,061 69,688 1,624 54,912 3,252 109,958
Jefferson-Pilot Corp 1,695 113,141 1,492 99,591 2,984 199,182
Johnson Controls Inc 1,256 85,879 1,130 77,264 2,140 146,323
K Mart Corp+ 8,052 101,153 6,677 83,880 14,101 177,144
Kaufman & Broad Home Corp 624 12,753 447 9,136 839 17,147
Kerr-McGee Corp 1,354 75,824 1,156 64,736 2,391 133,896
Keycorp 7,234 209,786 5,967 173,043 12,709 368,561
Kingworld Productions+ 1,073 40,908 958 36,524 1,904 72,590
KLA Instruments Corp+ 1,359 85,362 1,155 72,548 2,323 145,913
Knight-Ridder Inc 1,094 59,008 1,071 57,767 1,888 101,834
Laidlaw Inc Class B 5,328 33,300 4,507 28,169 9,017 56,356
Lehman Brothers Holdings 1,955 105,081 1,685 90,569 3,425 184,094
Limited Inc 3,692 139,835 3,047 115,405 6,621 250,770
Lincoln National Corp 3,288 154,125 2,670 125,156 5,722 268,219
Liz Claiborne Inc 879 32,303 809 29,731 1,798 66,076
Lockheed Martin Corp 6,050 223,850 5,286 195,582 11,264 416,768
</TABLE>
53
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Loews Corp 135 $ 10,597 733 $ 57,540
Longs Drug Stores Corp 66 2,075 324 10,186
Louisiana-Pacific Corp 63 1,165 592 10,952
Lowe's Co Inc 314 14,208 2,140 96,835
LSI Logic Corp+ 118 6,696 799 45,343
Mallinckrodt Group Inc 77 2,469 459 14,717
Marriott International 306 10,480 1,312 44,936
Marsh & McLennan
Companies Inc 220 16,019 1,477 107,544
Masco Corp 322 9,117 2,033 57,559
Mattel Inc 613 13,065 2,201 46,909
May Department Stores Co 221 8,633 2,109 82,383
MBIA Inc 94 4,876 624 32,370
MBNA Corp 606 14,961 4,140 102,206
McDermott International
Inc 46 1,038 436 9,837
McDonald's Corp 1,358 56,187 8,400 347,550
MCI WorldCom Inc+ 2,354 178,316 11,030 835,523
Mead Corp 102 3,806 635 23,693
MediaOne Group Inc+ 680 44,710 3,685 242,289
Mellon Bank Corp 494 16,487 3,126 104,330
Mercantile Bancorp 134 7,395 845 46,633
Meredith Corp 82 2,844 404 14,014
Merrill Lynch & Co Inc 240 17,910 2,134 159,250
MGIC Investment Corp 95 4,127 734 31,883
Micron Technology Inc+ 145 10,812 1,232 91,861
Milacron Inc 51 918 337 6,066
Minnesota Mining &
Manufacturing Co 505 47,722 2,105 198,923
Mirage Resorts Inc+ 217 2,835 1,001 13,076
Mobil Corp 869 88,964 4,690 480,139
Monsanto Co 820 33,671 3,041 124,871
Moore Corp Ltd 44 410 438 4,079
Morgan (J P) & Co Inc 216 27,904 1,109 143,269
Morgan Stanley Dean
Witter 654 56,121 3,666 314,589
Motorola Inc 776 71,586 4,016 370,476
Nabisco Group Holdings
Corp 370 6,567 1,903 33,778
NACCO Industries Inc
Class A 18 1,402 48 3,738
Nalco Chemical Co 64 3,288 409 21,012
National City Corp 852 23,536 3,422 94,533
National Semiconductor+ 86 2,424 942 26,553
National Service
Industries Inc 39 1,248 332 10,624
Navistar International
Corp+ 124 6,030 456 22,173
New Century Energies Inc -- -- 20 722
New York Times Co
Class A 162 6,328 1,113 43,477
Newmont Mining Corp 87 1,768 1,171 23,932
</TABLE>
54
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Loews Corp 1,847 $ 144,989 1,597 $ 125,364 3,333 $ 261,640
Longs Drug Stores Corp 579 18,202 566 17,794 896 28,168
Louisiana-Pacific Corp 1,731 32,024 1,564 28,934 3,231 59,773
Lowe's Co Inc 5,633 254,893 4,839 218,965 10,143 458,971
LSI Logic Corp+ 2,342 132,908 2,026 114,976 4,010 227,567
Mallinckrodt Group Inc 1,018 32,640 890 28,536 1,867 59,861
Marriott International 3,535 121,074 2,866 98,160 6,922 237,078
Marsh & McLennan
Companies Inc 4,230 307,997 3,453 251,422 7,300 531,531
Masco Corp 5,568 157,644 4,594 130,068 9,757 276,245
Mattel Inc 4,336 92,411 3,146 67,049 8,073 172,064
May Department Stores Co 5,647 220,586 4,731 184,805 10,045 392,383
MBIA Inc 1,732 89,848 1,400 72,625 2,610 135,394
MBNA Corp 12,142 299,756 9,522 235,074 24,396 602,276
McDermott International
Inc 773 17,441 942 21,254 1,558 35,152
McDonald's Corp 22,112 914,884 18,664 772,223 39,838 1,648,297
MCI WorldCom Inc+ 32,408 2,454,906 26,494 2,006,921 63,936 4,843,152
Mead Corp 1,776 66,267 1,330 49,626 2,722 101,565
MediaOne Group Inc+ 9,884 649,873 8,382 551,116 17,635 1,159,501
Mellon Bank Corp 8,552 285,423 7,054 235,427 14,882 496,687
Mercantile Bancorp 2,503 138,134 2,076 114,569 4,480 247,240
Meredith Corp 721 25,010 708 24,559 1,301 45,128
Merrill Lynch & Co Inc 5,678 423,721 4,859 362,603 9,942 741,922
MGIC Investment Corp 1,851 80,403 1,493 64,852 3,309 143,735
Micron Technology Inc+ 3,321 247,622 2,820 210,266 5,792 431,866
Milacron Inc 587 10,566 462 8,316 855 15,390
Minnesota Mining &
Manufacturing Co 5,437 513,796 4,649 439,330 10,736 1,014,552
Mirage Resorts Inc+ 2,965 38,730 2,309 30,161 4,814 62,883
Mobil Corp 12,616 1,291,563 10,583 1,083,435 22,600 2,313,675
Monsanto Co 8,629 354,328 7,014 288,012 16,370 672,193
Moore Corp Ltd 1,538 14,323 1,181 10,998 2,819 26,252
Morgan (J P) & Co Inc 2,962 382,653 2,505 323,615 5,082 656,531
Morgan Stanley Dean
Witter 9,491 814,446 7,858 674,315 16,872 1,447,828
Motorola Inc 10,242 944,824 8,488 783,018 17,239 1,590,298
Nabisco Group Holdings
Corp 5,245 93,099 4,416 78,384 13,613 241,631
NACCO Industries Inc
Class A 147 11,448 149 11,603 179 13,940
Nalco Chemical Co 868 44,593 847 43,515 1,769 90,882
National City Corp 9,528 263,211 7,552 208,624 17,818 492,222
National Semiconductor+ 2,784 78,474 2,229 62,830 4,476 126,167
National Service
Industries Inc 656 20,992 569 18,208 964 30,848
Navistar International
Corp+ 897 43,617 854 41,526 1,854 90,151
New Century Energies Inc 1,221 44,109 100 3,612 200 7,225
New York Times Co
Class A 3,127 122,148 2,524 98,594 5,411 211,367
Newmont Mining Corp 2,813 57,480 2,283 46,659 5,406 110,485
</TABLE>
55
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Niagra Mohawk Holdings
Inc+ 171 $ 2,586 1,022 $ 15,458
NICOR Inc 44 1,702 330 12,767
Nike Inc Class B 193 8,926 1,786 82,602
Nordstrom Inc 224 6,342 780 22,084
Norfolk Southern Corp 492 12,884 2,545 66,647
Nortel Networks Corp 1,666 68,410 6,994 287,191
Northern States Power Co 90 2,121 1,110 26,154
Northern Trust Corp 124 10,517 670 56,824
Northrop Grumman Corp 129 9,352 429 31,103
Novell Inc+ 425 10,067 2,196 52,018
Nucor Corp 121 5,634 499 23,235
Occidental Petroleum Corp 400 8,675 2,205 47,821
Office Depot Inc+ 1,807 18,861 4,075 42,533
ONEOK Inc 49 1,522 225 6,989
Owens Illinois Inc+ 136 3,366 898 22,225
PACCAR Inc 93 5,127 552 30,429
Pacificorp 317 6,479 1,868 38,177
Paine Webber Group Inc 500 19,625 1,132 44,431
Pall Corp 13 258 642 12,760
Parker Hannifin Corp 138 6,037 637 27,869
PECO Energy Co 242 9,831 1,303 52,934
Penney (J C) Co Inc 166 6,017 1,463 53,034
Peoples Energy Corp 53 1,931 245 8,927
PG & E Corp 446 13,519 2,365 71,689
Pharmacia and Upjohn Inc 517 27,013 3,010 157,272
Phelps Dodge Corp 66 3,692 420 23,494
Philip Morris Co Inc 2,771 103,739 13,047 488,447
Phillips Petroleum Co 169 8,619 1,829 93,279
Placer Dome Inc 321 3,330 2,072 21,497
PNC Bank Corp 229 11,980 1,895 99,132
Polaroid Corp 34 922 327 8,870
Potlatch Corp 2 77 230 8,884
PP & L Resources Inc 87 2,436 910 25,480
PPG Industries Inc 185 11,112 1,089 65,408
Praxair Inc 198 9,306 921 43,287
Progressive Corp Ohio 75 7,650 425 43,350
Public Service Enterprise
Group 108 4,428 1,440 59,040
Pulte Corp 90 2,081 354 8,186
Raytheon Co Class B 284 19,347 2,028 138,158
Reebok International Ltd+ 137 1,618 409 4,831
Regions Financial Corp 70 2,472 1,237 43,682
Reliant Energy Inc 344 9,524 1,793 49,644
Republic New York Corp 94 6,521 632 43,845
</TABLE>
56
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Niagra Mohawk Holdings
Inc+ 3,117 $ 47,145 2,466 $ 37,298 5,359 $ 81,055
NICOR Inc 789 30,524 701 27,120 1,159 44,839
Nike Inc Class B 4,774 220,797 3,956 182,965 8,257 381,886
Nordstrom Inc 2,501 70,810 2,011 56,936 4,512 127,746
Norfolk Southern Corp 6,621 173,387 5,598 146,598 11,812 309,327
Nortel Networks Corp 20,724 850,979 16,773 688,733 42,016 1,725,282
Northern States Power Co 2,744 64,656 2,196 51,743 4,413 103,981
Northern Trust Corp 1,816 154,020 1,561 132,392 3,150 267,159
Northrop Grumman Corp 943 68,368 869 63,002 1,948 141,230
Novell Inc+ 5,780 136,914 4,872 115,406 9,808 232,327
Nucor Corp 1,446 67,329 1,155 53,780 2,232 103,928
Occidental Petroleum Corp 5,762 124,963 4,744 102,885 10,405 225,658
Office Depot Inc+ 6,658 69,493 6,129 63,971 16,905 176,446
ONEOK Inc 493 15,314 497 15,438 555 17,240
Owens Illinois Inc+ 2,641 65,365 2,031 50,267 4,480 110,880
PACCAR Inc 1,133 62,457 1,018 56,117 1,903 104,903
Pacificorp 4,955 101,268 3,981 81,362 8,344 170,531
Paine Webber Group Inc 1,972 77,401 1,875 73,594 5,320 208,810
Pall Corp 2,160 42,930 1,713 34,046 3,478 69,125
Parker Hannifin Corp 1,778 77,787 1,428 62,475 3,024 132,300
PECO Energy Co 3,582 145,519 3,005 122,078 6,377 259,066
Penney (J C) Co Inc 4,036 146,305 3,327 120,604 7,145 259,006
Peoples Energy Corp 559 20,369 577 21,024 781 28,458
PG & E Corp 6,159 186,695 5,181 157,049 11,132 337,439
Pharmacia and Upjohn Inc 8,319 434,668 6,899 360,473 14,653 765,619
Phelps Dodge Corp 770 43,072 828 46,316 1,572 87,934
Philip Morris Co Inc 38,744 1,450,479 31,108 1,164,606 78,347 2,933,116
Phillips Petroleum Co 4,461 227,511 3,675 187,425 7,324 373,524
Placer Dome Inc 4,616 47,891 4,385 45,494 8,491 88,094
PNC Bank Corp 5,067 265,067 3,956 206,948 8,740 457,211
Polaroid Corp 696 18,879 642 17,414 1,047 28,400
Potlatch Corp 530 20,471 522 20,162 495 19,119
PP & L Resources Inc 2,577 72,156 2,013 56,364 4,787 134,036
PPG Industries Inc 2,938 176,464 2,371 142,408 5,161 309,983
Praxair Inc 2,640 124,080 2,172 102,084 4,670 219,490
Progressive Corp Ohio 1,044 106,488 938 95,676 2,041 208,182
Public Service Enterprise
Group 3,809 156,169 3,086 126,526 6,559 268,919
Pulte Corp 676 15,633 537 12,418 1,011 23,379
Raytheon Co Class B 5,535 377,072 4,583 312,217 9,661 658,156
Reebok International Ltd+ 916 10,820 713 8,422 1,454 17,175
Regions Financial Corp 3,410 120,416 2,965 104,702 6,073 214,453
Reliant Energy Inc 4,909 135,918 3,940 109,089 8,477 234,707
Republic New York Corp 1,850 128,344 1,494 103,646 3,013 209,027
</TABLE>
57
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Reynolds Metals Co 49 $ 3,102 476 $ 30,137
Rite Aid Corp 238 4,403 1,568 29,008
Rockwell International
Corp 220 13,008 1,214 71,778
Rohm & Haas Co 190 7,101 1,463 54,680
Rowan Co Inc+ 66 1,229 469 8,735
Russell Corp 65 1,089 283 4,740
Ryder System Inc 129 2,846 462 10,193
SAFECO Corp 156 5,557 843 30,032
Schlumberger Ltd 881 58,807 2,855 190,571
Scientific-Atlanta Inc 75 3,844 549 28,136
Seagate Technology Inc+ 117 3,883 1,474 48,918
Seagrams Co Ltd 244 12,947 2,140 113,554
Sears Roebuck & Co 358 13,425 2,580 96,750
Sempra Energy 248 5,533 1,463 32,643
Service Corp
International 229 3,163 1,508 20,829
Shared Medical System
Corp 42 2,360 150 8,428
Sherwin Williams Co 81 1,974 1,054 25,691
Sigma-Aldrich Corp 118 3,805 558 17,995
Silicon Graphics Inc+ 204 2,333 1,064 12,170
Snap-On Inc 38 1,285 347 11,733
Sonat Offshore Drilling
Co 122 4,407 686 24,782
Southern Co 765 20,703 4,275 115,692
SouthTrust Corp 906 31,993 1,972 69,636
Southwest Airlines Co 473 7,893 2,837 47,342
Springs Industries Inc
Class A 33 1,240 185 6,949
Sprint Corp 970 43,044 5,146 228,354
Sprint Corp (PCS Group)+ 117 6,991 1,011 60,407
St Jude Medical Inc+ 132 4,785 461 16,711
St Paul Co 164 5,258 1,470 47,132
Stanley Works 92 2,426 431 11,368
State Street Boston Corp 205 12,274 747 44,727
Summit Bancorp 184 6,141 1,080 36,045
Sunoco Inc 105 3,419 518 16,867
SunTrust Banks Inc 648 41,674 2,318 149,076
Super Value Inc 86 1,935 641 14,422
Synovus Financial Corp 197 3,718 1,550 29,256
Tektronix Inc 3 100 356 11,837
Temple-Inland Inc 49 3,038 455 28,210
Tenet Healthcare Corp+ 334 5,824 1,952 34,038
Tenneco Inc 8 161 1,065 21,433
Texaco Inc 612 38,862 3,271 207,709
Texas Utilities Co 161 6,510 1,649 66,681
Textron Inc 237 19,138 949 76,632
</TABLE>
58
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Reynolds Metals Co 974 $ 61,666 891 $ 56,411 2,024 $ 128,145
Rite Aid Corp 4,297 79,494 3,574 66,119 7,331 135,623
Rockwell International
Corp 3,339 197,418 2,673 158,041 5,506 325,542
Rohm & Haas Co 3,685 137,727 3,068 114,667 6,426 240,172
Rowan Co Inc+ 1,389 25,870 1,017 18,942 2,219 41,329
Russell Corp 547 9,162 516 8,643 746 12,495
Ryder System Inc 1,042 22,989 893 19,702 1,935 42,691
SAFECO Corp 2,207 78,624 1,978 70,466 4,168 148,485
Schlumberger Ltd 7,791 520,049 6,133 409,378 14,813 988,768
Scientific-Atlanta Inc 1,129 57,861 1,055 54,069 2,034 104,242
Seagate Technology Inc+ 3,983 132,186 3,213 106,631 6,876 228,197
Seagrams Co Ltd 5,301 281,284 4,520 239,843 9,699 514,653
Sears Roebuck & Co 6,732 252,450 5,576 209,100 11,435 428,812
Sempra Energy 3,923 87,532 3,229 72,047 6,820 152,171
Service Corp
International 4,287 59,214 3,421 47,253 7,249 100,127
Shared Medical System
Corp 456 25,622 374 21,014 634 35,623
Sherwin Williams Co 2,952 71,955 2,293 55,892 4,905 119,559
Sigma-Aldrich Corp 1,714 55,276 1,309 42,215 2,679 86,398
Silicon Graphics Inc+ 3,119 35,674 2,548 29,143 5,411 61,888
Snap-On Inc 741 25,055 782 26,441 1,573 53,187
Sonat Offshore Drilling
Co 1,820 65,748 1,454 52,526 3,146 113,649
Southern Co 11,275 305,130 9,471 256,309 20,210 546,933
SouthTrust Corp 3,297 116,425 3,039 107,315 8,074 285,113
Southwest Airlines Co 8,146 135,936 6,580 109,804 16,236 270,938
Springs Industries Inc
Class A 293 11,006 324 12,170 570 21,411
Sprint Corp 14,070 624,356 11,688 518,655 24,682 1,095,264
Sprint Corp (PCS Group)+ 3,170 189,407 2,369 141,548 5,085 303,829
St Jude Medical Inc+ 1,410 51,112 1,024 37,120 2,125 77,031
St Paul Co 3,868 124,018 3,130 100,356 6,818 218,602
Stanley Works 1,344 35,448 892 23,527 2,365 62,377
State Street Boston Corp 2,367 141,724 1,830 109,571 4,501 269,497
Summit Bancorp 2,947 98,356 2,346 78,298 5,052 168,611
Sunoco Inc 1,583 51,546 1,211 39,433 2,487 80,983
SunTrust Banks Inc 5,219 335,647 4,397 282,782 9,562 614,956
Super Value Inc 1,998 44,955 1,773 39,892 3,466 77,985
Synovus Financial Corp 4,556 85,995 3,312 62,514 8,753 165,213
Tektronix Inc 804 26,733 708 23,541 1,324 44,023
Temple-Inland Inc 716 44,392 749 46,438 1,495 92,690
Tenet Healthcare Corp+ 5,033 87,763 4,024 70,169 9,000 156,938
Tenneco Inc 2,853 57,417 2,232 44,919 4,772 96,037
Texaco Inc 8,897 564,959 7,268 461,518 15,623 992,060
Texas Utilities Co 4,618 186,740 3,806 153,905 7,936 320,912
Textron Inc 2,676 216,087 2,224 179,588 4,938 398,743
</TABLE>
59
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
The Pep Boys - Manny Moe
& Jack 149 $ 2,170 469 $ 6,830
Thermo Electron Corp+ 169 2,683 966 15,335
Thomas & Betts Corp 58 2,610 434 19,530
Timken Co 142 2,494 370 6,498
Torchmark Corp 142 4,047 832 23,712
Toys R Us Inc+ 281 3,881 1,611 22,252
Tribune Co 121 11,291 722 67,372
TRW Inc 121 6,594 715 38,967
U.S. Bancorp 681 21,026 3,798 117,263
Unicom Corp 128 4,944 1,254 48,436
Union Carbide Corp 125 7,109 716 40,723
Union Pacific Corp 278 13,535 1,539 74,930
Union Pacific Resources
Group 242 4,341 1,553 27,857
Union Planters Corp 173 7,298 732 30,881
United Healthcare Corp 267 16,237 1,254 76,259
United Technologies Corp 658 43,510 2,479 163,924
Unocal Corp 104 4,355 1,486 62,226
Unumprovident Corp 279 10,061 1,654 59,647
USX - Marathon Group 265 8,248 1,980 61,628
USX - U.S. Steel Group 126 3,402 455 12,285
VF Corp 120 4,320 756 27,216
Viacom Inc Class B+ 774 32,556 4,310 181,289
Vulcan Materials Co 400 17,050 856 36,487
Wachovia Corp 282 22,102 1,254 98,282
Washington Mutual Inc 604 19,177 3,653 115,983
Watson Pharmaceutical
Inc+ 500 17,937 980 35,157
Wellpoint Health
Networks+ -- -- 340 24,777
Wells Fargo & Co 2,437 97,023 10,838 431,488
Wendy's International Inc 141 3,948 715 20,020
Westvaco Corp 56 1,466 652 17,074
Weyerhauser Co 269 15,131 1,259 70,819
Whirlpool Corp 73 5,160 480 33,930
Willamette Industries Inc 109 4,319 670 26,549
Williams Co Inc 560 23,100 2,908 119,955
Winn-Dixie Stores Inc 146 4,964 849 28,866
Worthington Industries
Inc 177 2,655 452 6,780
----------- -----------
TOTAL LARGE CAP VALUE
STOCKS
-VALUE $ 5,625,248 $29,829,210
-COST $ 4,452,875 $23,249,984
</TABLE>
60
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
The Pep Boys - Manny Moe
& Jack 947 $ 13,791 799 $ 11,635 1,715 $ 24,975
Thermo Electron Corp+ 2,761 43,831 2,126 33,750 4,891 77,645
Thomas & Betts Corp 695 31,275 863 38,835 1,414 63,630
Timken Co 820 14,401 673 11,820 1,649 28,961
Torchmark Corp 2,306 65,721 2,003 57,086 4,094 116,679
Toys R Us Inc+ 4,230 58,427 3,587 49,545 7,843 108,331
Tribune Co 2,054 191,664 1,880 175,428 3,524 328,833
TRW Inc 2,015 109,818 1,725 94,012 3,633 197,999
U.S. Bancorp 11,549 356,575 9,170 283,124 23,328 720,252
Unicom Corp 3,467 133,913 2,859 110,429 6,137 237,042
Union Carbide Corp 2,109 119,949 1,859 105,731 3,994 227,159
Union Pacific Corp 4,075 198,402 3,333 162,275 7,050 343,247
Union Pacific Resources
Group 4,108 73,687 3,487 62,548 6,913 124,002
Union Planters Corp 1,998 84,291 1,771 74,714 6,797 286,748
United Healthcare Corp 3,309 201,229 2,517 153,065 5,812 353,442
United Technologies Corp 6,778 448,195 5,600 370,300 13,415 887,067
Unocal Corp 3,950 165,406 3,241 135,717 6,854 287,011
Unumprovident Corp 3,819 137,723 3,345 120,629 6,883 248,218
USX - Marathon Group 5,089 158,395 3,986 124,064 8,237 256,377
USX - U.S. Steel Group 1,529 41,283 1,089 29,403 2,087 56,349
VF Corp 2,009 72,324 1,716 61,776 3,621 130,356
Viacom Inc Class B+ 11,554 485,990 9,788 411,708 20,900 879,106
Vulcan Materials Co 1,278 54,475 1,308 55,753 4,170 177,746
Wachovia Corp 3,375 264,516 2,868 224,780 5,993 469,701
Washington Mutual Inc 9,658 306,642 8,062 255,969 17,144 544,322
Watson Pharmaceutical
Inc+ 1,890 67,804 1,429 51,265 4,275 153,366
Wellpoint Health
Networks+ 51 3,717 157 11,441 395 28,786
Wells Fargo & Co 29,275 1,165,511 24,058 957,809 54,411 2,166,238
Wendy's International Inc 2,044 57,232 1,753 49,084 3,786 106,008
Westvaco Corp 1,868 48,918 1,347 35,275 2,684 70,287
Weyerhauser Co 3,479 195,694 2,716 152,775 5,657 318,206
Whirlpool Corp 1,130 79,877 988 69,839 1,929 136,356
Willamette Industries Inc 1,822 72,197 1,443 57,179 3,196 126,642
Williams Co Inc 7,224 297,990 5,994 247,253 12,252 505,395
Winn-Dixie Stores Inc 2,563 87,142 2,090 71,060 4,326 147,084
Worthington Industries
Inc 1,645 24,675 1,224 18,360 2,692 40,380
----------- ----------- -----------
TOTAL LARGE CAP VALUE
STOCKS
-VALUE $79,851,295 $65,899,687 $144,595,974
-COST $61,613,558 $50,069,231 $119,833,469
</TABLE>
61
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDIUM CAP GROWTH STOCKS
PERCENT OF NET ASSETS 1.33% 1.52%
Abercrombie & Fitch Co+ 112 $ 3,906 984 $ 34,317
Acxiom Corp+ 100 1,756 100 1,756
Adelphia Communications
Class A+ -- -- -- --
Affiliated Computer
Services+ -- -- -- --
Altera Corp+ 640 26,960 2,024 85,261
Amazon.com Inc+ 200 24,862 428 53,232
American Eagle
Outfitters+ -- -- -- --
American Management
Systems Inc+ -- -- -- --
American Power
Conversion+ 600 10,537 1,624 28,521
Amerisource Health Corp
Class A+ -- -- 100 2,581
Amfm Inc+ 500 24,625 1,120 55,160
Analog Devices Inc+ 701 36,101 1,483 76,374
Apollo Group Inc+ -- -- 472 10,355
At Home Corp Series A+ 100 4,012 228 9,148
Barnes & Noble+ 200 4,737 516 12,223
Beckman Coulter Inc 194 9,191 196 9,285
Bed Bath & Beyond Inc+ 400 11,000 1,120 30,800
Bergen Brunswig Corp
Class A 559 8,630 1,192 18,402
Biogen Inc+ 636 48,813 1,214 93,174
Blyth Industries Inc+ -- -- -- --
Cablevision Systems Corp+ -- -- 780 54,600
Cadence Design Systems
Inc+ 964 13,134 1,809 24,648
Cambridge Technology
Partners+ 100 1,369 252 3,449
Carlisle Corp 200 8,000 152 6,080
CDW Computer Centers Inc+ -- -- 76 3,372
Centocor Inc+ 246 14,729 639 38,260
Central Newspapers
Class A 200 8,462 76 3,216
Checkfree Holdings Corp+ -- -- -- --
CIBER Inc+ -- -- 240 4,395
Ciena Corp+ 100 3,512 428 15,033
Cintas Corp 320 16,440 780 40,072
Citrix Systems Inc+ 200 11,400 692 39,444
CMGI Inc+ -- -- 100 8,394
CNet Inc+ -- -- -- --
Comair Holdings Inc 350 7,394 956 20,195
Comverse Technology Inc+ 350 27,300 560 43,680
Convergys Corp+ 100 2,062 100 2,062
Covad Communications
Group+ -- -- -- --
Covance Inc+ 190 3,052 411 6,602
Cox Communications Inc
Class A+ 872 32,420 1,430 53,185
Crompton & Knowles Corp 250 4,375 1,003 17,552
</TABLE>
62
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDIUM CAP GROWTH STOCKS
PERCENT OF NET ASSETS 1.94% 2.60% 3.24%
Abercrombie & Fitch Co+ 2,478 $ 86,420 2,134 $ 74,423 400 $ 13,950
Acxiom Corp+ 300 5,250 100 1,756 300 5,250
Adelphia Communications
Class A+ 100 6,200 100 6,200 100 6,200
Affiliated Computer
Services+ 200 8,550 100 4,275 200 8,550
Altera Corp+ 3,970 167,236 4,258 179,368 9,050 381,231
Amazon.com Inc+ 689 85,694 604 75,122 1,755 218,278
American Eagle
Outfitters+ 100 3,925 -- -- 100 3,925
American Management
Systems Inc+ 200 5,725 100 2,862 200 5,725
American Power
Conversion+ 3,270 57,429 2,674 46,962 8,232 144,574
Amerisource Health Corp
Class A+ 300 7,744 100 2,581 200 5,162
Amfm Inc+ 2,304 113,472 1,854 91,309 6,106 300,720
Analog Devices Inc+ 3,026 155,839 2,622 135,033 8,240 424,360
Apollo Group Inc+ 864 18,954 827 18,142 1,731 37,974
At Home Corp Series A+ 952 38,199 772 30,976 1,796 72,064
Barnes & Noble+ 1,227 29,065 961 22,764 2,373 56,210
Beckman Coulter Inc 545 25,819 519 24,588 1,384 65,567
Bed Bath & Beyond Inc+ 2,379 65,422 2,032 55,880 4,393 120,807
Bergen Brunswig Corp
Class A 2,234 34,487 2,628 40,570 5,486 84,690
Biogen Inc+ 2,222 170,538 2,160 165,780 6,972 535,101
Blyth Industries Inc+ 100 2,831 100 2,831 100 2,831
Cablevision Systems Corp+ 1,490 104,300 1,786 125,020 300 21,000
Cadence Design Systems
Inc+ 3,825 52,116 3,252 44,308 10,284 140,119
Cambridge Technology
Partners+ 514 7,035 425 5,817 1,125 15,398
Carlisle Corp 501 20,040 514 20,560 1,313 52,520
CDW Computer Centers Inc+ 150 6,656 358 15,886 306 13,579
Centocor Inc+ 1,111 66,521 1,020 61,072 3,651 218,604
Central Newspapers
Class A 151 6,389 693 29,323 1,943 82,213
Checkfree Holdings Corp+ 100 2,925 100 2,925 100 2,925
CIBER Inc+ 789 14,449 514 9,413 1,390 25,454
Ciena Corp+ 1,040 36,530 671 23,569 2,361 82,930
Cintas Corp 1,250 64,219 1,534 78,809 3,439 176,679
Citrix Systems Inc+ 1,490 84,930 1,874 106,818 3,962 225,834
CMGI Inc+ 300 25,162 100 8,394 300 25,162
CNet Inc+ 100 3,756 100 3,756 100 3,756
Comair Holdings Inc 2,103 44,426 2,008 42,419 4,239 89,549
Comverse Technology Inc+ 1,083 84,474 1,406 109,668 3,444 268,632
Convergys Corp+ 700 14,437 300 6,187 700 14,437
Covad Communications
Group+ 100 4,612 -- -- 100 4,612
Covance Inc+ 902 14,488 583 9,364 1,354 21,749
Cox Communications Inc
Class A+ 2,276 84,635 2,305 85,731 6,809 253,204
Crompton & Knowles Corp 1,928 33,740 1,848 32,340 3,836 67,130
</TABLE>
63
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
CSG Systems International
Inc+ -- $ -- -- $ --
Delta & Pine Land Co -- -- 240 6,795
DeVry Inc+ 100 2,087 100 2,087
Dial Corp 436 12,099 926 25,696
DLJDirect+ -- -- -- --
Dollar Tree Stores Inc+ 100 3,294 284 9,372
Doubleclick Inc+ -- -- -- --
E-Tek Dynamics Inc+ -- -- 100 5,669
Earthlink Network Inc+ -- -- -- --
Ebay Inc+ -- -- -- --
Electronic Arts Inc+ 300 20,587 516 35,410
Electronics for Imaging
Inc+ 300 17,587 240 14,070
Estee Lauder Co Class A 300 13,781 152 6,982
Ethan Allen Interiors Inc 300 8,756 278 8,114
Extreme Networks Inc+ -- -- -- --
Family Dollar Stores Inc 460 9,056 1,507 29,669
Fastenal Co 200 10,025 152 7,619
Fiserv Inc+ 487 15,006 1,064 32,785
Flowers Industries Inc 309 4,886 962 15,212
Forest Labs Inc Class A+ 264 12,787 639 30,952
Galileo International Inc 200 9,700 240 11,640
Gartner Group Inc
Class A -- -- 516 10,804
Gartner Group Inc
Class B+ 13 266 223 4,571
Gentex Corp+ 100 1,912 100 1,912
Genzyme Corp - General
Division+ 126 7,111 798 45,037
Harley-Davidson Inc 736 40,112 1,560 85,020
Health Management
Associates Inc
Class A+ 962 7,696 1,995 15,960
Healtheon Corp+ -- -- -- --
Hillenbrand Industries
Inc 200 5,700 328 9,348
HON Industries Inc 6 141 651 15,339
Howmet International Inc+ -- -- 76 1,358
I2 Technologies Inc+ -- -- 76 2,413
Immunex Corp+ 400 26,900 656 44,157
Informix Corp+ 1,190 8,665 761 5,541
Infoseek Corp+ -- -- -- --
Inktomi Corp+ -- -- -- --
International Game
Technology Inc 497 8,697 944 16,520
International Home Foods
Inc+ -- -- 152 3,040
International Network
Services Corp+ -- -- -- --
Intimate Brands Inc -- -- -- --
Intuit Inc+ 200 17,913 328 29,376
Iomega Corp+ 700 2,362 2,869 9,683
</TABLE>
64
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
CSG Systems International
Inc+ 100 $ 2,256 100 $ 2,256 100 $ 2,256
Delta & Pine Land Co 100 2,831 100 2,831 188 5,323
DeVry Inc+ 300 6,262 100 2,087 200 4,175
Dial Corp 1,877 52,087 2,314 64,213 5,306 147,241
DLJDirect+ 100 1,706 -- -- 100 1,706
Dollar Tree Stores Inc+ 720 23,760 737 24,321 1,643 54,219
Doubleclick Inc+ -- -- -- -- 100 9,987
E-Tek Dynamics Inc+ 300 17,006 100 5,669 300 17,006
Earthlink Network Inc+ -- -- -- -- 100 4,900
Ebay Inc+ 100 12,556 -- -- 100 12,556
Electronic Arts Inc+ 1,402 96,212 1,229 84,340 2,815 193,179
Electronics for Imaging
Inc+ 777 45,552 693 40,627 1,466 85,944
Estee Lauder Co Class A 502 23,061 950 43,641 2,074 95,274
Ethan Allen Interiors Inc 1,001 29,217 1,071 31,260 2,119 61,848
Extreme Networks Inc+ 100 6,394 -- -- 100 6,394
Family Dollar Stores Inc 3,317 65,303 2,907 57,232 6,333 124,681
Fastenal Co 501 25,113 514 25,764 1,313 65,814
Fiserv Inc+ 2,182 67,233 1,883 58,020 5,984 184,382
Flowers Industries Inc 2,219 35,088 1,875 29,648 4,241 67,061
Forest Labs Inc Class A+ 1,255 60,789 1,125 54,492 3,804 184,256
Galileo International Inc 777 37,684 693 33,610 1,655 80,267
Gartner Group Inc
Class A 1,240 25,962 961 20,121 2,285 47,842
Gartner Group Inc
Class B+ 771 15,805 616 12,628 1,471 30,156
Gentex Corp+ 300 5,719 100 1,912 300 5,719
Genzyme Corp - General
Division+ 631 35,612 564 31,831 1,201 67,781
Harley-Davidson Inc 2,921 159,194 2,557 139,356 5,700 310,650
Health Management
Associates Inc
Class A+ 4,264 34,112 3,476 27,808 11,590 92,720
Healtheon Corp+ 100 3,381 100 3,381 100 3,381
Hillenbrand Industries
Inc 689 19,636 604 17,214 2,273 64,780
HON Industries Inc 1,399 32,964 968 22,808 2,435 57,375
Howmet International Inc+ 251 4,487 68 1,215 695 12,423
I2 Technologies Inc+ 163 5,175 168 5,334 518 16,446
Immunex Corp+ 1,452 97,738 1,384 93,160 3,432 231,016
Informix Corp+ 2,633 19,172 1,509 10,987 4,275 31,128
Infoseek Corp+ 100 3,044 100 3,044 100 3,044
Inktomi Corp+ 100 11,337 -- -- 100 11,337
International Game
Technology Inc 1,904 33,320 2,483 43,452 5,981 104,667
International Home Foods
Inc+ 701 14,020 514 10,280 1,413 28,260
International Network
Services Corp+ 200 10,637 100 5,319 100 5,319
Intimate Brands Inc 200 7,712 100 3,856 200 7,712
Intuit Inc+ 789 70,665 604 54,096 2,361 211,457
Iomega Corp+ 6,467 21,826 5,567 18,789 12,443 41,995
</TABLE>
65
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
IVAX Corp+ 1,130 $ 18,645 891 $ 14,701
Ivillage Inc+ -- -- -- --
IXC Communications Inc+ -- -- 76 2,669
Jabil Circuit+ 100 4,481 152 6,811
Jds Uniphase Corp+ -- -- 580 61,516
Jones Apparel Group Inc+ 300 7,781 900 23,344
Jones Intercable Inc
Class A+ -- -- -- --
Keane Inc+ 100 2,162 692 14,964
Keebler Foods Co+ 200 5,962 88 2,623
Lamar Advertising Co+ -- -- -- --
Legato Systems Inc+ -- -- 480 20,670
Level 3 Communications+ 100 5,975 200 11,950
LHS Group Inc+ -- -- 76 2,522
Lincare Holdings Inc+ -- -- 340 8,967
Linear Technology Corp 872 54,881 1,496 94,154
Linens 'N Things Inc+ -- -- -- --
Lycos Inc+ -- -- 100 4,062
Martin Marietta Inc -- -- 88 4,015
Maxim Integrated Products
Inc+ 600 40,387 1,120 75,390
McCormick & Co Inc 188 6,016 792 25,344
Medimmune Inc+ -- -- 328 33,845
Meritor Automotive Inc 170 3,708 994 21,682
Microchip Technology Inc+ 300 16,425 504 27,594
Miller (Herman) Inc 376 8,859 979 23,068
Mindspring Enterprises
Inc+ -- -- -- --
MP3.com+ -- -- -- --
Mylan Laboratories 603 11,947 1,182 23,418
National Data Corp 200 7,650 240 9,180
Navigant Consulting Inc+ -- -- -- --
Network Associates Inc+ 525 8,859 1,274 21,499
New Era of Networks Inc+ -- -- -- --
Northpoint
Communications+ -- -- -- --
Northwest Airlines Corp
Class A+ 100 2,950 516 15,222
Novellus System Inc+ 200 10,788 240 12,945
Outback Steakhouse Inc+ 100 2,962 692 20,500
Outdoor Systems Inc+ 350 11,309 680 21,972
Park Place Entertainment
Corp+ 464 5,249 1,813 20,510
Perot Systems Corp
Class A+ -- -- -- --
Pixar Inc+ -- -- 88 2,997
Pmc-Sierra Inc+ -- -- 100 9,300
Policy Management Systems
Corp+ 396 12,103 99 3,026
Priceline.com Inc+ -- -- -- --
Primedia Inc+ -- -- 76 1,050
</TABLE>
66
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AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
IVAX Corp+ 2,036 $ 33,594 1,653 $ 27,275 3,429 $ 56,579
Ivillage Inc+ 100 3,631 -- -- 100 3,631
IXC Communications Inc+ 163 5,725 168 5,901 330 11,591
Jabil Circuit+ 602 26,977 514 23,034 1,214 54,402
Jds Uniphase Corp+ 200 21,212 100 10,606 476 50,486
Jones Apparel Group Inc+ 1,984 51,460 1,864 48,348 3,963 102,790
Jones Intercable Inc
Class A+ 100 4,387 100 4,387 100 4,387
Keane Inc+ 1,427 30,859 1,596 34,513 3,533 76,401
Keebler Foods Co+ 175 5,217 793 23,641 1,666 49,668
Lamar Advertising Co+ 100 4,175 100 4,175 100 4,175
Legato Systems Inc+ 1,478 63,646 1,208 52,019 400 17,225
Level 3 Communications+ 800 47,750 400 23,900 900 53,719
LHS Group Inc+ 251 8,330 157 5,210 507 16,826
Lincare Holdings Inc+ 601 15,851 514 13,557 1,400 36,925
Linear Technology Corp 2,704 170,183 2,496 157,092 8,038 505,892
Linens 'N Things Inc+ 200 6,850 100 3,425 200 6,850
Lycos Inc+ 200 8,125 100 4,062 300 12,187
Martin Marietta Inc 275 12,547 179 8,167 200 9,125
Maxim Integrated Products
Inc+ 2,291 154,213 1,854 124,797 6,259 421,309
McCormick & Co Inc 1,451 46,432 1,233 39,456 2,963 94,816
Medimmune Inc+ 300 30,937 100 10,319 200 20,625
Meritor Automotive Inc 1,868 40,746 1,814 39,568 3,730 81,361
Microchip Technology Inc+ 1,315 71,996 1,095 59,951 2,638 144,430
Miller (Herman) Inc 2,476 58,341 2,146 50,565 4,640 109,330
Mindspring Enterprises
Inc+ 200 5,812 100 2,919 200 5,812
MP3.com+ 100 3,412 -- -- 100 3,412
Mylan Laboratories 2,348 46,520 2,056 40,734 6,229 123,412
National Data Corp 677 25,895 693 26,507 1,666 63,724
Navigant Consulting Inc+ 200 8,775 100 4,387 100 4,387
Network Associates Inc+ 2,367 39,943 2,132 35,977 6,779 114,396
New Era of Networks Inc+ 100 1,675 100 1,675 100 1,675
Northpoint
Communications+ 100 2,644 100 2,644 100 2,644
Northwest Airlines Corp
Class A+ 1,052 31,034 1,686 49,737 3,710 109,445
Novellus System Inc+ 777 41,909 604 32,578 1,578 85,113
Outback Steakhouse Inc+ 1,215 35,994 1,139 33,743 2,782 82,417
Outdoor Systems Inc+ 1,424 46,013 2,054 66,370 4,315 139,428
Park Place Entertainment
Corp+ 4,986 56,404 3,659 41,392 9,168 103,713
Perot Systems Corp
Class A+ 200 4,150 100 2,075 200 4,150
Pixar Inc+ 63 2,146 268 9,129 330 11,241
Pmc-Sierra Inc+ 300 27,900 100 9,300 200 18,600
Policy Management Systems
Corp+ 431 13,172 261 7,977 866 26,467
Priceline.com Inc+ 100 6,812 -- -- 100 6,812
Primedia Inc+ 251 3,467 168 2,320 695 9,600
</TABLE>
67
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Prodigy Communications
Corp+ -- $ -- -- $ --
PSINET Inc+ -- -- -- --
Quintiles Transnational
Corp+ 200 7,162 604 21,631
Rambus Inc+ -- -- 88 8,536
Rational Software Corp+ 100 2,706 692 18,727
Readers Digest
Association Class A 300 9,375 1,056 33,000
Realnetworks Inc+ -- -- -- --
Reynolds & Reynolds Co
Class A 146 3,194 810 17,719
Rf Micro Devices Inc+ -- -- -- --
Robert Half International
Inc+ 200 5,250 924 24,255
Ross Stores Inc 200 8,325 328 13,653
Rythms Netconnections
Inc+ -- -- 100 3,825
Safeskin Corp+ 100 794 516 4,096
Sanmina Corp+ 100 7,475 240 18,000
Sapient Corp+ -- -- -- --
Sepracor Inc+ -- -- 352 26,356
ServiceMaster Co 700 11,550 2,088 34,452
SFX Entertainment Inc
Class A+ -- -- -- --
Shaw Industries Inc 1,060 21,200 1,322 26,440
Siebel Systems Inc+ 200 13,737 606 41,625
Snyder Communications
Inc+ -- -- 152 3,097
Sodexho Marriott Services
Inc+ 44 621 21 297
Solutia Inc 543 10,860 1,072 21,440
Sonoco Products 426 10,117 912 21,660
Speedway Motorsports+ -- -- -- --
SPX Corp+ 33 2,797 43 3,644
Starbucks Corp+ 800 18,300 1,736 39,711
STERIS Corp+ 200 2,512 780 9,799
Sterling Commerce Inc+ 277 5,298 989 18,915
Storage Technology Corp+ 518 10,878 918 19,278
Stryker Corp 348 20,053 710 40,914
SunGard Data Systems Inc+ 400 10,000 856 21,400
Sybron International
Corp+ 400 10,300 944 24,308
Sylvan Learning Systems
Inc+ -- -- -- --
Symbol Technologies Inc 277 9,643 868 30,217
Synopsys Inc+ 200 11,188 692 38,709
Teradyne Inc+ 276 18,785 798 54,314
The Bisys Group Inc+ -- -- -- --
Tiffany & Co 452 23,899 780 41,242
TMP Worldwide Inc+ -- -- -- --
Tootsie Roll Industries 449 15,350 215 7,350
U.S. Foodservice+ 100 2,081 -- --
Unitedglobalcom Inc
Class A+ -- -- -- --
</TABLE>
68
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Prodigy Communications
Corp+ -- $ -- -- $ -- 100 $ 1,856
PSINET Inc+ 200 9,575 100 4,787 100 4,787
Quintiles Transnational
Corp+ 1,315 47,093 1,239 44,372 2,538 90,892
Rambus Inc+ 163 15,811 179 17,363 242 23,474
Rational Software Corp+ 1,678 45,411 1,329 35,966 2,526 68,360
Readers Digest
Association Class A 2,028 63,375 1,875 58,594 3,798 118,687
Realnetworks Inc+ 100 8,175 -- -- 100 8,175
Reynolds & Reynolds Co
Class A 1,688 36,925 1,475 32,266 3,268 71,487
Rf Micro Devices Inc+ 200 8,787 200 8,787 200 8,787
Robert Half International
Inc+ 1,953 51,266 1,741 45,701 3,521 92,426
Ross Stores Inc 1,215 50,574 1,050 43,706 2,461 102,439
Rythms Netconnections
Inc+ 300 11,475 100 3,825 200 7,650
Safeskin Corp+ 1,252 9,938 971 7,707 2,308 18,320
Sanmina Corp+ 601 45,075 514 38,550 1,290 96,750
Sapient Corp+ -- -- -- -- 100 7,300
Sepracor Inc+ 100 7,487 636 47,620 100 7,487
ServiceMaster Co 5,045 83,242 4,228 69,762 9,690 159,885
SFX Entertainment Inc
Class A+ 100 4,119 100 4,119 200 8,237
Shaw Industries Inc 2,818 56,360 2,472 49,440 6,029 120,580
Siebel Systems Inc+ 1,134 77,892 966 66,352 2,476 170,070
Snyder Communications
Inc+ 514 10,473 425 8,659 1,113 22,677
Sodexho Marriott Services
Inc+ 315 4,449 241 3,404 1,081 15,269
Solutia Inc 2,101 42,020 2,575 51,500 6,140 122,800
Sonoco Products 1,823 43,296 1,918 45,552 5,317 126,279
Speedway Motorsports+ -- -- -- -- 100 3,731
SPX Corp+ 255 21,611 217 18,391 440 37,290
Starbucks Corp+ 3,156 72,193 2,736 62,586 9,108 208,345
STERIS Corp+ 1,678 21,080 1,607 20,188 3,368 42,310
Sterling Commerce Inc+ 2,076 39,703 1,961 37,504 3,852 73,669
Storage Technology Corp+ 1,813 38,073 1,516 31,836 5,609 117,789
Stryker Corp 1,387 79,926 1,039 59,872 3,986 229,693
SunGard Data Systems Inc+ 1,765 44,125 2,021 50,525 4,769 119,225
Sybron International
Corp+ 1,841 47,406 2,289 58,942 5,299 136,449
Sylvan Learning Systems
Inc+ 200 3,975 100 1,987 200 3,975
Symbol Technologies Inc 1,792 62,384 1,818 63,289 3,775 131,417
Synopsys Inc+ 1,390 77,753 1,318 73,726 3,003 167,980
Teradyne Inc+ 1,581 107,607 2,054 139,800 4,184 284,773
The Bisys Group Inc+ 100 4,750 100 4,750 100 4,750
Tiffany & Co 1,442 76,246 1,736 91,791 2,980 157,568
TMP Worldwide Inc+ 100 5,537 100 5,537 100 5,538
Tootsie Roll Industries 490 16,752 301 10,290 904 30,906
U.S. Foodservice+ 400 8,325 200 4,162 400 8,325
Unitedglobalcom Inc
Class A+ 100 7,325 100 7,325 100 7,325
</TABLE>
69
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Univision Communications
Inc+ -- $ -- 64 $ 4,720
US Internetworking Inc+ -- -- -- --
US Web Corp+ 100 1,950 100 1,950
USG Corp 100 4,900 240 11,760
Valassis Communications
Inc+ 150 6,563 246 10,762
Valspar Corp 100 3,631 328 11,910
Value America Inc+ 100 1,056 -- --
Vastar Resources Inc 200 13,325 264 17,589
Verisign Inc+ -- -- -- --
Veritas Software Corp+ 700 41,475 756 44,793
Viad Corp 436 13,053 1,114 33,350
Vignette Corp+ -- -- -- --
Visx Inc+ -- -- 100 9,050
Vitesse Semiconductor
Corp+ 200 13,563 692 47,056
Washington Post Co
Class B 27 14,553 88 47,432
Waters Corp+ -- -- 504 33,232
West Point Stevens Inc 100 2,400 328 7,872
Whitman Corp 364 6,074 924 15,419
Whittman-Hart Inc+ -- -- -- --
Williams-Sonoma Inc+ -- -- -- --
Xilinx Inc+ 794 55,530 1,284 89,800
Yahoo! Inc+ 400 58,950 1,684 248,390
Young & Rubicam Inc 100 4,463 64 2,856
Ziff-Davis Inc-ZDNET+ -- -- -- --
----------- -----------
TOTAL MEDIUM CAP GROWTH
STOCKS
-VALUE $ 1,399,940 $ 3,415,040
-COST $ 906,030 $ 2,598,413
MEDIUM CAP VALUE STOCKS
PERCENT OF NET ASSETS 1.73% 1.95%
20th Century Industries -- $ -- 1,044 $ 19,575
Adaptec Inc+ 500 19,500 1,384 53,976
Airborne Freight Corp 100 2,519 504 12,694
Albemarle Corp 113 1,956 29 502
Alleghany Corp+ 2 362 104 18,798
Alliant Energy Corp 141 4,080 1,021 29,545
Allmerica Financial Corp 24 1,356 630 35,595
AMB Property Corp REIT 100 2,150 880 18,920
AMBAC Inc 300 15,844 516 27,251
American Financial Group
Inc 304 8,968 143 4,218
American National
Insurance Co 100 7,000 88 6,160
American Standard Co Inc+ 100 4,100 616 25,256
American Tower Corp+ 100 2,275 856 19,474
American Water Works Co
Inc 200 5,825 780 22,717
</TABLE>
70
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Univision Communications
Inc+ 338 $ 24,927 246 $ 18,142 483 $ 35,621
US Internetworking Inc+ -- -- -- -- 100 1,500
US Web Corp+ 300 5,850 100 1,950 200 3,900
USG Corp 777 38,073 604 29,596 1,466 71,834
Valassis Communications
Inc+ 739 32,331 554 24,237 1,322 57,838
Valspar Corp 864 31,374 782 28,396 1,931 70,119
Value America Inc+ -- -- -- -- 100 1,056
Vastar Resources Inc 338 22,519 446 29,715 783 52,167
Verisign Inc+ 200 21,662 100 10,831 200 21,663
Veritas Software Corp+ 2,004 118,737 1,854 109,849 4,340 257,145
Viad Corp 1,801 53,917 2,257 67,569 4,512 135,078
Vignette Corp+ -- -- -- -- 100 6,781
Visx Inc+ 300 27,131 100 9,050 200 18,088
Vitesse Semiconductor
Corp+ 1,578 107,304 1,418 96,424 3,080 209,440
Washington Post Co
Class B 158 85,162 119 64,141 87 46,893
Waters Corp+ 1,502 99,038 1,250 82,422 200 13,188
West Point Stevens Inc 1,152 27,648 871 20,904 2,220 53,280
Whitman Corp 2,587 43,171 2,284 38,114 5,357 89,395
Whittman-Hart Inc+ 200 5,262 100 2,631 200 5,263
Williams-Sonoma Inc+ 200 7,800 100 3,900 242 9,438
Xilinx Inc+ 2,634 184,215 3,146 220,023 6,924 484,247
Yahoo! Inc+ 2,854 420,965 2,522 371,995 2,596 382,910
Young & Rubicam Inc 238 10,621 246 10,978 783 34,941
Ziff-Davis Inc-ZDNET+ 100 1,512 100 1,512 100 1,513
----------- ----------- -----------
TOTAL MEDIUM CAP GROWTH
STOCKS
-VALUE $ 7,269,936 $ 6,705,747 $15,262,540
-COST $ 6,178,875 $ 5,300,564 $12,575,866
MEDIUM CAP VALUE STOCKS
PERCENT OF NET ASSETS 2.55% 3.34% 4.33%
20th Century Industries 2,016 $ 37,800 1,864 $ 34,950 188 $ 3,525
Adaptec Inc+ 2,980 116,220 2,646 103,194 6,194 241,566
Airborne Freight Corp 1,315 33,122 1,050 26,447 2,550 64,228
Albemarle Corp 336 5,817 186 3,220 771 13,348
Alleghany Corp+ 106 19,159 106 19,159 10 1,808
Alliant Energy Corp 1,829 52,927 1,735 50,207 377 10,909
Allmerica Financial Corp 1,384 78,196 1,114 62,941 951 53,732
AMB Property Corp REIT 363 7,804 268 5,762 407 8,751
AMBAC Inc 852 44,996 871 46,000 3,280 173,225
American Financial Group
Inc 688 20,296 700 20,650 1,737 51,242
American National
Insurance Co 163 11,410 368 25,760 330 23,100
American Standard Co Inc+ 1,327 54,407 961 39,401 2,373 97,293
American Tower Corp+ 2,028 46,137 1,675 38,106 600 13,650
American Water Works Co
Inc 1,765 51,406 1,607 46,804 3,456 100,656
</TABLE>
71
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ameritrade Holding Corp
Class A+ 100 $ 2,038 100 $ 2,037
Apartment Investment &
Management Co Class A
REIT -- -- 516 21,156
Archstone Communities
Trust REIT 500 10,688 856 18,297
Arden Realty Group Inc
REIT 100 2,331 792 18,463
Arrow Electronics Inc+ 286 5,684 937 18,623
Associated Banc Corp 150 5,288 538 18,964
Astoria Financial Corp 330 10,849 481 15,813
Atmel Corp+ 562 22,094 1,173 46,114
Aurora Foods Inc+ 100 1,688 100 1,687
Autoliv Inc 444 15,401 943 32,710
Autonation Inc+ 1,600 20,700 4,016 51,957
Avalonbay Communities Inc -- -- 692 24,393
Avnet Inc 230 10,178 284 12,567
AVX Corp 200 5,988 164 4,910
Azurix Corp+ -- -- -- --
Bancwest Corp 200 8,363 64 2,676
Belo (A H) Corp 312 5,909 750 14,203
BJ's Wholesale Club Inc+ 630 17,798 780 22,035
Borders Group Inc+ 200 2,663 780 10,384
Boston Properties Inc
REIT -- -- 428 14,258
Bowater Inc 195 10,457 513 27,510
Brinker International
Inc+ 856 20,544 871 20,904
Cabot Corp 210 4,843 827 19,073
Camden Property Trust
REIT -- -- 328 9,102
CarrAmercia Realty Corp
REIT 100 2,300 240 5,520
Catellus Development
Corp+ 200 2,738 768 10,512
CBRL Group Inc 149 1,956 801 10,513
CCB Financial Corp 200 9,450 152 7,182
Centura Banks Inc 200 9,263 352 16,302
Charter One Financial Inc 542 12,686 1,198 28,041
Chiron Corp+ 296 9,509 937 30,101
City National Corp 100 3,319 328 10,885
CKE Restaurants Inc 120 968 384 3,096
Clayton Homes Inc 557 5,292 1,321 12,550
CNA Financial Corp+ 200 7,275 76 2,764
CNB Bancshares Inc -- -- 152 8,683
CNF Transportation Inc 162 6,308 470 18,301
Colonial BancGroup Inc 100 1,238 100 1,237
Comdisco Inc 448 9,436 1,062 22,368
Commerce Bancshares Inc 251 9,271 578 21,350
Commercial Federal Corp -- -- 704 16,368
Compass Bancshares Inc 500 13,281 888 23,588
</TABLE>
72
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ameritrade Holding Corp
Class A+ 200 $ 4,075 100 $ 2,037 300 $ 6,113
Apartment Investment &
Management Co Class A
REIT 952 39,032 871 35,711 200 8,200
Archstone Communities
Trust REIT 1,753 37,470 2,468 52,753 5,841 124,851
Arden Realty Group Inc
REIT 1,502 35,015 1,139 26,553 2,826 65,881
Arrow Electronics Inc+ 2,190 43,526 1,861 36,987 4,272 84,906
Associated Banc Corp 786 27,706 737 25,979 3,280 115,620
Astoria Financial Corp 781 25,675 1,144 37,609 2,647 87,020
Atmel Corp+ 2,600 102,212 2,300 90,419 5,411 212,720
Aurora Foods Inc+ 300 5,062 200 3,375 300 5,063
Autoliv Inc 1,901 65,941 1,415 49,083 5,397 187,208
Autonation Inc+ 7,889 102,064 6,822 88,260 19,098 247,080
Avalonbay Communities Inc 1,490 52,522 1,229 43,322 300 10,575
Avnet Inc 689 30,488 746 33,010 1,956 86,553
AVX Corp 426 12,753 336 10,059 1,048 31,375
Azurix Corp+ 200 3,712 100 1,856 200 3,713
Bancwest Corp 426 17,812 246 10,286 1,048 43,820
Belo (A H) Corp 1,778 33,671 1,475 27,933 3,592 68,024
BJ's Wholesale Club Inc+ 772 21,809 556 15,707 300 8,475
Borders Group Inc+ 1,865 24,828 1,696 22,578 3,445 45,862
Boston Properties Inc
REIT 852 28,382 871 29,015 2,120 70,623
Bowater Inc 1,360 72,930 1,146 61,454 2,704 145,002
Brinker International
Inc+ 1,740 41,760 845 20,280 1,970 47,280
Cabot Corp 1,916 44,188 1,714 39,529 3,801 87,661
Camden Property Trust
REIT 200 5,550 100 2,775 200 5,550
CarrAmercia Realty Corp
REIT 1,302 29,946 1,139 26,197 2,626 60,398
Catellus Development
Corp+ 1,941 26,567 1,575 21,558 3,798 51,985
CBRL Group Inc 1,600 21,000 1,392 18,270 3,213 42,171
CCB Financial Corp 601 28,397 514 24,286 1,478 69,836
Centura Banks Inc 338 15,654 725 33,577 1,225 56,733
Charter One Financial Inc 2,545 59,564 2,138 50,043 6,919 161,948
Chiron Corp+ 2,125 68,266 1,843 59,206 4,274 137,302
City National Corp 864 28,674 782 25,953 2,031 67,404
CKE Restaurants Inc 1,068 8,611 686 5,531 1,549 12,489
Clayton Homes Inc 2,888 27,436 2,512 23,864 5,838 55,461
CNA Financial Corp+ 151 5,493 514 18,697 1,402 50,998
CNB Bancshares Inc 200 11,425 100 5,712 100 5,713
CNF Transportation Inc 1,036 40,339 1,026 39,950 2,318 90,257
Colonial BancGroup Inc 400 4,950 200 2,475 400 4,950
Comdisco Inc 3,000 63,188 2,653 55,879 6,229 131,198
Commerce Bancshares Inc 970 35,829 854 31,545 3,265 120,595
Commercial Federal Corp 300 6,975 100 2,325 300 6,975
Compass Bancshares Inc 1,956 51,956 2,311 61,386 5,415 143,836
</TABLE>
73
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Comsat Corp 410 $ 14,248 604 $ 20,989
Concord EFS Inc+ 250 9,281 944 35,046
Conexant Systems Inc+ 210 15,094 690 49,558
Conoco Inc -- -- 200 5,350
Consol Energy Inc 100 1,344 -- --
Consolidated Papers Inc 172 4,580 657 17,493
Continental Airlines
Class B+ 300 12,244 328 13,386
Cooper Cameron Corp+ 200 8,325 416 17,316
Cordant Technologies Inc 232 9,599 240 9,930
Cornerstone Properties
Inc REIT 300 4,781 1,320 21,037
Crescent Real Estate Co 500 10,375 1,032 21,414
Crown Castle
International Corp+ -- -- -- --
Cullen/Frost Bankers Inc -- -- 504 13,167
Cytec Industries Inc+ 100 2,331 240 5,595
Dean Foods Co 124 4,991 275 11,069
Dentsply International
Inc 200 4,963 516 12,803
Diamond Offshore Drilling
Inc 100 3,825 880 33,660
Diebold Inc 266 7,082 911 24,255
Dime Bancorp Inc 600 11,025 1,120 20,580
Dole Food Inc 146 3,677 425 10,705
Donaldson Lufkin &
Jenrette Inc 200 9,563 152 7,267
DST Systems Inc+ 200 13,300 152 10,108
Duke Realty Investments 200 4,488 1,056 23,694
E*Trade Group Inc+ 100 2,500 100 2,500
E.W. Scripps Co 200 9,600 264 12,672
Edwards A G & Sons Inc 382 9,598 1,070 26,884
Enron Oil & Gas Co 100 2,388 880 21,010
Ensco International Inc 500 10,656 1,648 35,123
Equitable Co Inc 300 18,525 1,056 65,208
Equity Office Properties
Trust REIT 900 23,006 2,371 60,609
Equity Residential
Properties Trust REIT 400 17,600 1,032 45,408
Everest Reinsurance
Holdings Inc 100 2,775 416 11,544
Federal Mogul Corp 296 13,505 516 23,542
Federated Investors Inc
Class B 100 1,838 100 1,837
Fel Cor Lodging Trust Inc
REIT 200 3,588 792 14,206
Financial Security
Assurance Holdings -- -- -- --
Finova Group Inc 200 7,600 416 15,808
First American Corp 500 20,063 1,004 40,285
First American Financial
Corp 100 1,488 516 7,675
First Security Corp 841 18,239 1,420 30,796
First Tennessee National
Corp 616 19,712 1,278 40,896
First Virginia Banks Inc 238 10,531 390 17,257
Firstmerit Corp 200 5,256 704 18,502
</TABLE>
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LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
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COMMON STOCKS (CONTINUED)
Comsat Corp 1,531 $ 53,202 1,252 $ 43,507 2,829 $ 98,308
Concord EFS Inc+ 2,248 83,457 1,898 70,463 4,216 156,519
Conexant Systems Inc+ 1,882 135,269 1,824 131,100 3,575 256,953
Conoco Inc 900 24,075 400 10,700 900 24,075
Consol Energy Inc 200 2,687 100 1,344 200 2,688
Consolidated Papers Inc 1,538 40,949 1,211 32,243 2,762 73,538
Continental Airlines
Class B+ 1,027 41,914 1,050 42,853 2,661 108,602
Cooper Cameron Corp+ 1,040 43,290 961 40,002 2,185 90,951
Cordant Technologies Inc 768 31,776 621 25,694 1,766 73,068
Cornerstone Properties
Inc REIT 2,654 42,298 2,400 38,250 5,323 84,835
Crescent Real Estate Co 1,928 40,006 2,468 51,211 5,841 121,201
Crown Castle
International Corp+ -- -- -- -- 100 1,513
Cullen/Frost Bankers Inc 300 7,837 100 2,612 200 5,225
Cytec Industries Inc+ 777 18,114 604 14,081 1,666 38,839
Dean Foods Co 958 38,559 815 32,804 2,024 81,466
Dentsply International
Inc 952 23,621 871 21,612 2,196 54,488
Diamond Offshore Drilling
Inc 1,665 63,686 1,407 53,818 3,456 132,192
Diebold Inc 1,335 35,544 1,778 47,339 3,682 98,033
Dime Bancorp Inc 2,291 42,097 2,736 50,274 6,283 115,450
Dole Food Inc 1,234 31,081 932 23,475 2,307 58,108
Donaldson Lufkin &
Jenrette Inc 414 19,794 425 20,320 1,225 58,570
DST Systems Inc+ 689 45,818 514 34,181 1,401 93,167
Duke Realty Investments 2,128 47,747 1,875 42,070 3,886 87,192
E*Trade Group Inc+ 700 17,456 300 7,500 700 17,456
E.W. Scripps Co 514 24,672 725 34,800 1,137 54,576
Edwards A G & Sons Inc 2,313 58,114 2,101 52,788 4,349 109,269
Enron Oil & Gas Co 1,765 42,139 1,518 36,242 3,545 84,637
Ensco International Inc 3,519 74,999 3,193 68,051 7,089 151,084
Equitable Co Inc 1,865 115,164 1,964 121,277 3,963 244,715
Equity Office Properties
Trust REIT 4,715 120,527 4,654 118,968 10,735 274,413
Equity Residential
Properties Trust REIT 2,391 105,204 1,932 85,008 4,393 193,292
Everest Reinsurance
Holdings Inc 1,040 28,860 871 24,170 2,196 60,939
Federal Mogul Corp 811 37,002 1,137 51,876 2,720 124,100
Federated Investors Inc
Class B 400 7,350 200 3,675 400 7,350
Fel Cor Lodging Trust Inc
REIT 1,690 30,314 1,329 23,839 3,003 53,866
Financial Security
Assurance Holdings 100 5,006 -- -- 100 5,006
Finova Group Inc 864 32,832 1,139 43,282 2,726 103,588
First American Corp 2,033 81,574 1,681 67,450 5,890 236,336
First American Financial
Corp 1,240 18,445 961 14,295 200 2,975
First Security Corp 2,698 58,518 2,304 49,968 9,452 204,985
First Tennessee National
Corp 2,502 80,064 2,211 70,752 6,942 222,144
First Virginia Banks Inc 852 37,701 1,176 52,038 2,741 121,289
Firstmerit Corp 1,953 51,327 1,696 44,573 3,433 90,224
</TABLE>
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LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Food Lion Inc Class A 600 $ 4,744 1,800 $ 14,231
Food Lion Inc Class B 1,200 9,675 2,264 18,253
Fox Entertainment Group
Inc+ 100 2,306 100 2,306
Franchise Finance Corp
REIT -- -- 88 1,908
Fremont General
Corporation 300 2,981 704 6,996
Fulton Financial Corp 100 1,919 677 12,990
Furniture Brands
International+ -- -- 100 2,006
GATX Corp 246 8,210 451 15,052
Genentech Inc+ -- -- -- --
General Growth Properties
Inc -- -- -- --
General Motors Class H+ 500 25,750 1,132 58,298
Georgia-Pacific (Timber
Group) 337 8,109 1,126 27,094
Global Marine Inc+ 600 10,650 1,789 31,755
Golden State Bancorp+ 100 2,006 428 8,587
Goldman Sachs Group Inc 200 11,963 300 17,944
Greenpoint Financial Corp 400 10,350 780 20,182
Hannaford Brothers Co 236 16,933 205 14,709
Harsco Corp 238 6,590 434 12,016
Harte-Hanks
Communications Inc 100 2,244 328 7,359
Hartford Life Class A -- -- -- --
Hawaiian Electric
Industries Inc 192 6,828 187 6,650
Hertz Corp Class A 100 4,031 264 10,642
Hibernia Corp Class A 700 9,056 1,272 16,456
Highwood Properties Inc 100 2,481 792 19,651
Hispanic Broadcasting
Corp+ 100 7,475 252 18,837
Hormel Foods Corp 200 8,050 416 16,744
Hospitalities Properties
Trust -- -- 100 2,687
Host Marriott Corp 887 8,205 1,708 15,799
HRPT Properties Trust
REIT 500 6,938 1,296 17,982
HSB Group Inc 345 12,830 170 6,322
Hubbell Inc Class B 232 9,005 574 22,278
IBP Inc 332 7,615 886 20,323
ICN Pharmaceuticals Inc 300 6,225 973 20,190
IMC Global Inc 436 6,949 1,143 18,217
Infinity Broadasting
Corp+ -- -- -- --
Interstate Bakeries Corp -- -- 328 7,851
J.D. Edwards & Co+ 100 1,825 252 4,630
Johns Manville Corp 100 1,438 240 3,450
Keystone Financial Inc 100 2,656 604 16,044
Kimco Realty Corp REIT 200 7,450 284 10,579
Knight/Trimark Group Inc+ 100 3,275 100 3,275
Lafarge Corp 300 8,250 240 6,600
Lancaster Colony Corp 107 3,518 231 7,594
</TABLE>
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<TABLE>
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LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
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SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Food Lion Inc Class A 4,320 $ 34,155 3,418 $ 27,024 8,391 $ 66,342
Food Lion Inc Class B 4,958 39,974 4,453 35,902 9,874 79,609
Fox Entertainment Group
Inc+ 600 13,837 300 6,919 600 13,838
Franchise Finance Corp
REIT 300 6,506 100 2,169 200 4,338
Fremont General
Corporation 1,327 13,187 1,150 11,428 2,473 24,575
Fulton Financial Corp 300 5,719 200 3,837 300 5,719
Furniture Brands
International+ 300 6,019 100 2,006 200 4,013
GATX Corp 1,231 41,085 991 33,075 2,479 82,737
Genentech Inc+ 100 16,425 -- -- 100 16,425
General Growth Properties
Inc 200 6,650 100 3,325 288 9,576
General Motors Class H+ 2,028 104,442 1,775 91,412 5,476 282,014
Georgia-Pacific (Timber
Group) 2,557 61,528 1,539 37,032 4,778 114,971
Global Marine Inc+ 4,007 71,124 3,364 59,711 8,023 142,408
Golden State Bancorp+ 952 19,099 871 17,474 2,108 42,292
Goldman Sachs Group Inc 1,800 107,662 800 47,850 1,600 95,700
Greenpoint Financial Corp 1,502 38,864 1,329 34,388 4,593 118,844
Hannaford Brothers Co 628 45,059 572 41,041 1,437 103,105
Harsco Corp 982 27,189 1,012 28,020 2,391 66,201
Harte-Hanks
Communications Inc 952 21,360 782 17,546 2,320 52,055
Hartford Life Class A 100 4,344 100 4,344 100 4,344
Hawaiian Electric
Industries Inc 609 21,658 606 21,551 1,472 52,348
Hertz Corp Class A 426 17,173 536 21,607 960 38,700
Hibernia Corp Class A 2,905 37,583 3,628 46,937 8,049 104,134
Highwood Properties Inc 1,590 39,452 1,318 32,703 3,091 76,695
Hispanic Broadcasting
Corp+ 514 38,421 725 54,194 1,137 84,991
Hormel Foods Corp 1,040 41,860 961 38,680 2,285 91,971
Hospitalities Properties
Trust 300 8,062 100 2,687 200 5,375
Host Marriott Corp 3,339 30,886 4,358 40,311 9,996 92,463
HRPT Properties Trust
REIT 3,519 48,826 3,193 44,303 7,089 98,360
HSB Group Inc 556 20,676 546 20,304 1,428 53,104
Hubbell Inc Class B 1,409 54,687 1,259 48,865 2,816 109,296
IBP Inc 1,636 37,526 2,270 52,068 4,593 105,352
ICN Pharmaceuticals Inc 1,907 39,570 1,839 38,159 3,763 78,082
IMC Global Inc 2,694 42,936 2,194 34,967 5,132 81,791
Infinity Broadasting
Corp+ 100 2,706 100 2,706 100 2,706
Interstate Bakeries Corp 952 22,788 871 20,850 2,120 50,748
J.D. Edwards & Co+ 614 11,282 425 7,809 1,313 24,126
Johns Manville Corp 789 11,342 604 8,682 1,678 24,121
Keystone Financial Inc 1,315 34,930 1,050 27,891 2,550 67,734
Kimco Realty Corp REIT 545 20,301 1,050 39,112 2,273 84,669
Knight/Trimark Group Inc+ 400 13,100 200 6,550 400 13,100
Lafarge Corp 589 16,197 514 14,135 1,490 40,975
Lancaster Colony Corp 681 22,388 657 21,599 1,659 54,540
</TABLE>
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LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Lear Corp+ 200 $ 8,038 516 $ 20,737
Legg Mason Inc 300 11,456 504 19,246
Leggett & Platt Inc 816 18,054 1,900 42,037
Leucadia National Corp -- -- 328 6,949
Liberty Property Trust
REIT 100 2,450 792 19,404
Litton Industries Inc+ 201 12,864 143 9,152
Loral Space &
Communications+ 1,042 19,147 2,626 48,253
M & T Bank Corp -- -- 88 40,832
Mack-Cali Realty Corp
REIT 100 2,838 692 19,636
Mandalay Resort Group+ 429 8,795 1,070 21,935
Manpower Inc 200 5,400 1,056 28,512
Marshall & Ilsley Corp 458 26,822 1,079 63,189
Meditrust Corp REIT 402 3,593 826 7,382
Mercantile Bankshares 254 8,319 723 23,678
Mercury General Corp 200 6,050 152 4,598
Metro-Goldwyn-Mayer Inc+ 100 2,000 403 8,060
MGM Grand Inc+ 140 6,878 122 5,993
Millennium Chemicals Inc 310 7,130 999 22,977
Modis Professional
Services+ 400 6,325 1,120 17,710
Mohawk Industries Inc+ -- -- -- --
Molex Inc 216 6,926 324 10,388
Molex Inc Class A 112 3,150 949 26,691
Mony Group Inc -- -- -- --
Murphy Oil Corp 293 14,870 310 15,733
Nabisco Holdings Corp
Class A 100 3,931 76 2,988
Nabors Industries Inc+ 400 10,875 1,032 28,058
National Commerce Bancorp 300 6,356 1,144 24,239
NCR Corp+ 471 20,606 1,008 44,100
Neiman Marcus Group Inc+ 100 2,225 64 1,424
New Plan Excel Realty
Trust REIT 300 5,681 592 11,211
Nielson (A C) Corp+ 73 1,825 299 7,475
Noble Affiliates Inc 38 1,178 642 19,902
Noble Drilling Corp+ 600 14,775 1,560 38,415
Northfork Bancorp 600 10,875 1,296 23,490
Nova Corp/Georgia+ 100 2,600 100 2,600
Ogden Corp 101 2,298 538 12,240
Ohio Casualty Corp 500 7,688 404 6,212
Old Kent Financial Corp 443 17,499 1,074 42,423
Old National Bancorp 544 16,305 69 2,070
Old Republic
International Corp 525 8,138 1,406 21,793
Omnicare Inc 300 2,888 944 9,086
Oxford Health Plans Inc+ 400 6,200 780 12,090
Pacific Century Financial
Corp 548 10,172 898 16,669
</TABLE>
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LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Lear Corp+ 1,027 $ 41,273 961 $ 38,620 2,473 $ 99,384
Legg Mason Inc 1,227 46,856 1,050 40,097 2,461 93,979
Leggett & Platt Inc 3,348 74,074 3,054 67,570 9,339 206,625
Leucadia National Corp 952 20,171 871 18,454 2,108 44,663
Liberty Property Trust
REIT 300 7,350 100 2,450 300 7,350
Litton Industries Inc+ 521 33,344 696 44,544 1,536 98,304
Loral Space &
Communications+ 5,119 94,062 4,757 87,410 10,620 195,143
M & T Bank Corp 88 40,832 89 41,296 65 30,160
Mack-Cali Realty Corp
REIT 1,402 39,782 1,229 34,873 2,815 79,876
Mandalay Resort Group+ 2,411 49,426 2,098 43,009 4,512 92,496
Manpower Inc 2,216 59,832 1,964 53,028 3,963 107,001
Marshall & Ilsley Corp 2,031 118,940 1,760 103,070 5,582 326,896
Meditrust Corp REIT 2,686 24,006 2,129 19,028 5,301 47,378
Mercantile Bankshares 1,770 57,968 1,752 57,378 3,739 122,452
Mercury General Corp 501 15,155 514 15,548 1,225 37,056
Metro-Goldwyn-Mayer Inc+ 903 18,060 413 8,260 1,317 26,340
MGM Grand Inc+ 51 2,505 249 12,232 376 18,471
Millennium Chemicals Inc 2,039 46,897 1,916 44,068 3,827 88,021
Modis Professional
Services+ 2,654 41,966 2,200 34,787 4,946 78,209
Mohawk Industries Inc+ 200 4,525 100 2,262 288 6,516
Molex Inc 987 31,646 798 25,586 2,093 67,107
Molex Inc Class A 1,805 50,766 1,686 47,419 3,612 101,588
Mony Group Inc 200 5,600 100 2,800 200 5,600
Murphy Oil Corp 832 42,224 779 39,534 2,193 111,295
Nabisco Holdings Corp
Class A 363 14,270 168 6,604 230 9,042
Nabors Industries Inc+ 2,266 61,607 1,958 53,233 4,593 124,872
National Commerce Bancorp 2,291 48,541 2,143 45,405 4,516 95,683
NCR Corp+ 1,924 84,175 1,843 80,631 5,321 232,794
Neiman Marcus Group Inc+ 326 7,254 336 7,476 960 21,360
New Plan Excel Realty
Trust REIT 1,590 30,111 1,329 25,168 2,715 51,415
Nielson (A C) Corp+ 705 17,625 431 10,775 1,240 31,000
Noble Affiliates Inc 1,391 43,121 1,012 31,372 2,479 76,849
Noble Drilling Corp+ 3,256 80,179 2,925 72,028 6,448 158,782
Northfork Bancorp 2,454 44,479 3,193 57,873 7,122 129,086
Nova Corp/Georgia+ 300 7,800 200 5,200 300 7,800
Ogden Corp 1,213 27,596 966 21,976 2,324 52,871
Ohio Casualty Corp 1,102 16,943 928 14,268 2,704 41,574
Old Kent Financial Corp 2,221 87,730 1,933 76,354 5,654 223,333
Old National Bancorp 439 13,170 187 5,610 926 27,780
Old Republic
International Corp 3,124 48,422 2,724 42,222 6,138 95,139
Omnicare Inc 1,765 16,988 2,043 19,664 4,228 40,695
Oxford Health Plans Inc+ 1,665 25,808 1,596 24,738 3,268 50,654
Pacific Century Financial
Corp 1,702 31,593 1,387 25,746 4,025 74,714
</TABLE>
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LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PacifiCare Health Systems
Inc Class A+ 286 $ 17,160 222 $ 13,320
Pan Am Sat Corp+ 100 3,694 176 6,501
Payless ShoeSource Inc+ 217 10,823 162 8,080
Pentair Co 200 9,100 240 10,920
Peoples Bank Bridgeport 100 2,613 152 3,990
Peoples Heritage
Financial Group Inc 100 1,681 944 15,871
Pepsi Bottling Group Inc 100 1,894 100 1,894
Pimco Advisors Holdings
LP -- -- -- --
PMI Group Inc 150 6,375 228 9,690
Post Properties Inc REIT -- -- 240 9,810
Premark International Inc 361 12,003 333 11,072
Premier Parks Inc+ -- -- 100 3,275
Price (T Rowe) &
Associates 400 12,375 944 29,205
Prison Realty Corp REIT 162 2,116 624 8,151
Prologis Trust REIT 100 1,963 100 1,963
Promus Hotel Corp+ 341 9,910 984 28,598
Protective Life Corp 100 2,975 692 20,587
Provident Financial Group 100 4,188 64 2,680
Public Storage Inc REIT 300 7,800 792 20,592
Quantum Corp-DLT &
Storage+ 500 9,156 1,460 26,736
Quantum Hard Disk Drive+ 300 2,138 680 4,845
Questar Corp 254 4,794 838 15,817
Rayonier Inc 156 6,474 196 8,134
Reading & Bates Falcon
Corp+ 172 2,215 1,131 14,562
Reinsurance Group Of
America -- -- 528 16,896
Reliance Group Holdings 100 475 792 3,762
Reliastar Financial Corp 400 18,025 1,056 47,586
Republic Services Inc
Class A+ 100 1,088 100 1,088
RJ Reynolds Tobacco
Holdings+ 223 6,119 817 22,416
Rouse Co 200 4,550 880 20,020
RPM Inc 272 3,621 1,083 14,417
Saks Inc+ 464 7,801 1,145 19,250
SCI Systems Inc+ 300 14,944 604 30,087
Simon Property Group Inc
REIT 200 5,100 756 19,278
Smurfit-Stone Container
Corp+ 486 10,297 704 14,916
Southdown Inc 275 13,888 240 12,120
Sovereign Bancorp Inc 600 6,019 1,648 16,532
Spieker Properties Inc 100 3,825 604 23,103
St Joe Paper Corp 200 4,675 152 3,553
Sterling Software Inc+ 200 4,025 780 15,698
Stewart Enterprises Inc
Class A 300 1,622 592 3,201
Suiza Foods Corp+ 200 6,375 152 4,845
TCF Financial Corp 400 11,300 1,056 29,832
</TABLE>
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<TABLE>
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LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PacifiCare Health Systems
Inc Class A+ 1,051 $ 63,060 667 $ 40,020 1,369 $ 82,140
Pan Am Sat Corp+ 163 6,021 268 9,899 418 15,440
Payless ShoeSource Inc+ 802 40,000 796 39,700 2,035 101,496
Pentair Co 756 34,398 609 27,709 1,666 75,803
Peoples Bank Bridgeport 501 13,151 425 11,156 1,225 32,156
Peoples Heritage
Financial Group Inc 400 6,700 200 3,362 400 6,700
Pepsi Bottling Group Inc 400 7,575 200 3,787 400 7,575
Pimco Advisors Holdings
LP 300 10,575 100 3,525 200 7,050
PMI Group Inc 621 26,393 504 21,420 1,522 64,685
Post Properties Inc REIT 200 8,175 100 4,088 200 8,175
Premark International Inc 1,431 47,581 1,225 40,731 2,859 95,062
Premier Parks Inc+ 300 9,825 100 3,275 300 9,825
Price (T Rowe) &
Associates 1,841 56,956 2,111 65,309 5,034 155,739
Prison Realty Corp REIT 1,587 20,730 1,340 17,504 3,200 41,800
Prologis Trust REIT 300 5,888 200 3,925 300 5,888
Promus Hotel Corp+ 1,765 51,295 2,222 64,577 4,556 132,409
Protective Life Corp 1,302 38,735 1,139 33,885 2,826 84,074
Provident Financial Group 326 13,651 246 10,301 972 40,703
Public Storage Inc REIT 1,327 34,502 1,964 51,064 4,163 108,238
Quantum Corp-DLT &
Storage+ 3,413 62,501 3,077 56,348 6,801 124,543
Quantum Hard Disk Drive+ 1,506 10,730 1,438 10,246 3,150 22,444
Questar Corp 1,958 36,957 1,557 29,388 3,763 71,027
Rayonier Inc 556 23,074 537 22,286 1,418 58,847
Reading & Bates Falcon
Corp+ 2,644 34,042 2,187 28,158 5,137 66,139
Reinsurance Group Of
America -- -- -- -- 100 3,200
Reliance Group Holdings 1,778 8,446 1,518 7,211 3,456 16,416
Reliastar Financial Corp 1,865 84,042 1,696 76,426 4,681 210,938
Republic Services Inc
Class A+ 300 3,263 100 1,088 300 3,263
RJ Reynolds Tobacco
Holdings+ 2,248 61,680 1,822 49,991 5,237 143,690
Rouse Co 1,678 38,175 1,418 32,260 3,280 74,620
RPM Inc 2,552 33,974 2,117 28,183 5,121 68,173
Saks Inc+ 2,532 42,569 2,277 38,282 4,977 83,676
SCI Systems Inc+ 1,302 64,856 1,229 61,220 2,815 140,222
Simon Property Group Inc
REIT 2,028 51,714 1,675 42,713 3,675 93,713
Smurfit-Stone Container
Corp+ 3,337 70,703 2,612 55,342 5,914 125,303
Southdown Inc 560 28,280 762 38,481 2,031 102,566
Sovereign Bancorp Inc 3,619 36,303 3,293 33,033 7,278 73,008
Spieker Properties Inc 1,215 46,474 1,139 43,567 2,738 104,729
St Joe Paper Corp 601 14,048 514 12,015 1,302 30,434
Sterling Software Inc+ 1,865 37,533 1,607 32,341 3,256 65,527
Stewart Enterprises Inc
Class A 1,315 7,109 950 5,136 4,593 24,831
Suiza Foods Corp+ 501 15,969 514 16,384 1,402 44,689
TCF Financial Corp 2,116 59,777 2,411 68,111 4,858 137,239
</TABLE>
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<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Teleflex Inc 350 $ 16,275 240 $ 11,160
Thermo Instrument Systems
Inc+ 50 556 25 278
Tosco Corp 571 14,561 1,595 40,673
Total System Services Inc 250 3,875 284 4,402
Transatlantic Holdings
Inc 126 9,088 220 15,868
Transocean Offshore Inc 300 10,200 1,044 35,496
Travelers Property
Casualty -- -- 188 6,674
Trigon Healthcare Inc+ -- -- 328 11,911
Trinity Industries Inc 222 6,965 363 11,389
Trustmark Corp 100 2,306 616 14,207
Tyson Food Inc Class A 391 6,280 583 9,364
U.S. Industries Inc 427 6,885 1,146 18,479
UAL Corp+ 300 19,444 504 32,666
Ultramar Diamond Shamrock
Corp 410 10,711 816 21,318
UnionBanCal Corp 100 3,838 100 3,838
United Asset Management
Corp 300 5,869 880 17,215
United Rentals Inc+ -- -- -- --
Unitrin Inc 300 10,781 604 21,706
Universal Foods Corp 358 7,563 463 9,781
Universal Health Services
Inc+ 200 6,675 152 5,073
US Trust Corp New -- -- -- --
USA Networks Inc+ 522 23,425 629 28,226
USEC Inc 400 4,325 1,208 13,062
Valhi Inc 100 1,131 -- --
Valley National Bancorp 110 2,860 634 16,484
Vornado Realty Trust REIT 200 6,825 780 26,618
Warnaco Group Inc
Class A 100 2,200 792 17,424
Washington Federal Inc 143 3,414 826 19,721
Weatherford International 380 13,538 1,022 36,409
Weis Markets Inc 200 7,088 176 6,237
Wesco Financial Corp -- -- -- --
Westamerica Bancorp 100 3,194 416 13,286
Westfield America Inc
REIT -- -- 76 1,102
Wilmington Trust Corp 192 9,600 249 12,450
Worldwide Inc REIT 864 20,574 1,682 40,053
York International Corp 202 8,307 258 10,610
Ziff Davis Inc+ -- -- 152 2,347
Zions Bancorp 300 14,925 780 38,805
----------- -----------
TOTAL MEDIUM CAP VALUE
STOCKS
-VALUE $ 1,817,537 $ 4,371,351
-COST $ 1,616,395 $ 4,556,354
</TABLE>
82
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Teleflex Inc 596 $ 27,714 593 $ 27,575 1,578 $ 73,377
Thermo Instrument Systems
Inc+ 294 3,271 257 2,859 714 7,943
Tosco Corp 3,490 88,995 3,172 80,886 6,920 176,460
Total System Services Inc 864 13,392 693 10,742 2,043 31,667
Transatlantic Holdings
Inc 366 26,398 437 31,519 836 60,297
Transocean Offshore Inc 1,904 64,736 1,754 59,636 4,040 137,360
Travelers Property
Casualty 300 10,650 168 5,964 300 10,650
Trigon Healthcare Inc+ 200 7,263 100 3,631 200 7,263
Trinity Industries Inc 956 29,995 903 28,332 2,113 66,295
Trustmark Corp 1,865 43,012 1,596 36,808 3,545 81,757
Tyson Food Inc Class A 1,337 21,476 926 14,874 4,709 75,638
U.S. Industries Inc 2,439 39,329 2,136 34,443 4,979 80,286
UAL Corp+ 1,052 68,183 871 56,452 2,991 193,854
Ultramar Diamond Shamrock
Corp 1,715 44,804 2,164 56,535 4,627 120,880
UnionBanCal Corp 700 26,863 504 19,341 990 37,991
United Asset Management
Corp 1,865 36,484 1,596 31,222 3,445 67,393
United Rentals Inc+ 200 4,888 100 2,444 200 4,888
Unitrin Inc 1,302 46,791 1,228 44,131 2,726 97,966
Universal Foods Corp 717 15,147 673 14,217 1,249 26,385
Universal Health Services
Inc+ 501 16,721 514 17,155 1,313 43,821
US Trust Corp New -- -- -- -- 100 8,313
USA Networks Inc+ 1,239 55,600 1,011 45,369 5,145 230,882
USEC Inc 2,542 27,485 2,289 24,750 5,299 57,295
Valhi Inc 100 1,131 -- -- 165 1,867
Valley National Bancorp 1,362 35,412 1,200 31,200 2,869 74,594
Vornado Realty Trust REIT 1,578 53,849 1,407 48,014 3,368 114,933
Warnaco Group Inc
Class A 1,502 33,044 1,139 25,058 2,726 59,972
Washington Federal Inc 1,672 39,919 1,268 30,274 2,948 70,384
Weatherford International 2,120 75,525 2,013 71,713 3,967 141,324
Weis Markets Inc 63 2,233 268 9,497 318 11,269
Wesco Financial Corp -- -- -- -- 88 25,520
Westamerica Bancorp 952 30,405 871 27,818 2,108 67,324
Westfield America Inc
REIT 151 2,190 168 2,436 607 8,802
Wilmington Trust Corp 719 35,950 696 34,800 1,733 86,650
Worldwide Inc REIT 3,290 78,343 3,097 73,747 8,993 214,146
York International Corp 1,004 41,290 884 36,355 2,183 89,776
Ziff Davis Inc+ 514 7,935 425 6,561 1,313 20,269
Zions Bancorp 1,502 74,724 1,139 56,665 3,721 185,119
----------- ----------- -----------
TOTAL MEDIUM CAP VALUE
STOCKS
-VALUE $ 9,524,066 $ 8,603,439 $20,440,327
-COST $ 9,881,848 $ 9,149,504 $22,208,660
</TABLE>
83
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDIUM CAP UTILITY STOCKS
PERCENT OF NET ASSETS 0.29% 0.28%
Allegheny Energy Inc -- $ -- -- $ --
AT & T Liberty Media
Group+ 6,010 192,320 12,444 398,208
Conectiv Inc 1,067 22,874 752 16,121
Dynegy Inc -- -- -- --
El Paso Energy Corp -- -- -- --
Energy East Corp -- -- -- --
Global TeleSystems Group
Inc+ 400 12,925 880 28,435
Idacorp Inc -- -- -- --
Illinova Corp -- -- -- --
IPALCO Enterprises Inc -- -- -- --
Kansas City Power & Light
Co -- -- -- --
Keyspan Corp -- -- -- --
LG & E Energy Corp -- -- -- --
McLeod Inc Class A+ 400 13,350 880 29,370
MCN Corp -- -- -- --
Midamerican Energy
Holdings Co+ -- -- -- --
Minnesota Power & Light
Co 698 12,433 476 8,479
Montana Power Co -- -- -- --
National Fuel Gas Co -- -- -- --
New England Electric
System -- -- -- --
Nisource Inc -- -- -- --
Northeast Utilities+ -- -- -- --
NTL Inc+ -- -- 528 51,843
OGE Energy Corp -- -- -- --
Pinnacle West Capital
Corp -- -- -- --
Potomac Electric Power Co -- -- -- --
Puget Sound Power & Light
Co -- -- -- --
Qwest Communications
International Inc+ 1,400 40,163 3,192 91,770
SCANA Corp -- -- -- --
Sierra Pacific Resources 444 10,823 317 7,727
TECO Energy Inc -- -- -- --
Telephone & Data System
Inc -- -- -- --
Utilicorp United Inc -- -- -- --
Wisconsin Energy Corp -- -- -- --
----------- -----------
TOTAL MEDIUM CAP UTILITY
STOCKS
-VALUE $ 304,888 $ 631,953
-COST $ 172,174 $ 336,889
SMALL CAP GROWTH STOCKS
PERCENT OF NET ASSETS 0.31% 0.21%
Adtran Inc+ 100 $ 3,813 176 $ 6,710
Advanced Fibre
Communication+ 300 4,894 616 10,049
</TABLE>
84
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AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDIUM CAP UTILITY STOCKS
PERCENT OF NET ASSETS 0.53% 0.39% 0.46%
Allegheny Energy Inc 1,686 $ 56,903 -- $ -- -- $ --
AT & T Liberty Media
Group+ 20,650 660,800 19,050 609,600 45,094 1,443,008
Conectiv Inc 1,437 30,806 973 20,859 1,007 21,588
Dynegy Inc 1,502 35,297 -- -- -- --
El Paso Energy Corp 1,576 57,623 -- -- -- --
Energy East Corp 2,006 50,150 -- -- -- --
Global TeleSystems Group
Inc+ 1,854 59,907 1,886 60,941 4,032 130,284
Idacorp Inc 513 16,063 -- -- -- --
Illinova Corp 1,011 32,226 -- -- -- --
IPALCO Enterprises Inc 1,646 34,463 -- -- -- --
Kansas City Power & Light
Co 837 20,140 -- -- -- --
Keyspan Corp 630 18,585 -- -- -- --
LG & E Energy Corp 870 20,010 -- -- -- --
McLeod Inc Class A+ 1,854 61,877 1,708 57,005 3,832 127,893
MCN Corp 815 14,568 -- -- -- --
Midamerican Energy
Holdings Co+ 789 22,585 -- -- -- --
Minnesota Power & Light
Co 842 14,998 624 11,115 692 12,326
Montana Power Co 1,544 47,768 -- -- -- --
National Fuel Gas Co 510 24,002 -- -- -- --
New England Electric
System 884 46,134 -- -- -- --
Nisource Inc 1,879 44,626 -- -- -- --
Northeast Utilities+ 1,779 31,244 -- -- -- --
NTL Inc+ 964 94,653 893 87,681 88 8,641
OGE Energy Corp 1,173 27,566 -- -- -- --
Pinnacle West Capital
Corp 1,269 48,222 -- -- -- --
Potomac Electric Power Co 1,683 44,600 -- -- -- --
Puget Sound Power & Light
Co 851 20,158 -- -- -- --
Qwest Communications
International Inc+ 5,306 152,548 4,743 136,370 14,372 413,195
SCANA Corp 1,367 34,175 -- -- -- --
Sierra Pacific Resources 571 13,918 421 10,262 397 9,677
TECO Energy Inc 1,668 35,028 -- -- -- --
Telephone & Data System
Inc 725 50,478 -- -- -- --
Utilicorp United Inc 888 20,591 -- -- -- --
Wisconsin Energy Corp 1,542 37,683 -- -- -- --
----------- ----------- -----------
TOTAL MEDIUM CAP UTILITY
STOCKS
-VALUE $ 1,980,395 $ 993,833 $ 2,166,612
-COST $ 1,258,544 $ 537,403 $ 1,173,735
SMALL CAP GROWTH STOCKS
PERCENT OF NET ASSETS 0.25% 0.29% 0.33%
Adtran Inc+ 175 $ 6,672 268 $ 10,218 718 $ 27,374
Advanced Fibre
Communication+ 1,327 21,647 1,261 20,570 2,673 43,603
</TABLE>
85
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ann Taylor Stores Inc+ 247 $ 8,182 172 $ 5,698
Arrow International Inc -- -- 88 2,552
Bally Total Fitness
Holding Corp+ 26 834 67 2,148
BEA Systems Inc+ -- -- 88 2,123
C-Cube Microsystems Inc+ 100 2,781 264 7,343
Choice Hotels
International Inc+ 59 959 444 7,215
Choicepoint Inc+ 141 9,280 123 8,095
Cirrus Logic Inc+ 634 7,093 686 7,675
Cognex Corp+ -- -- 264 7,970
Coleman Co Inc+ -- -- 176 1,617
Commscope Inc+ 50 1,722 304 10,469
CompUSA Inc+ 400 2,425 1,332 8,075
Dal Tile International
Inc+ -- -- -- --
Department 56 Inc+ 200 5,600 176 4,928
DSP Communications Inc+ -- -- 440 10,340
Etec Systems Inc+ -- -- 176 7,744
Ethyl Corp 1,031 5,477 889 4,723
Federal Signal Corp 498 10,427 431 9,024
Ferro Corp 457 10,968 330 7,920
First Health Group Corp+ 468 10,091 962 20,743
GenCorp Inc -- -- -- --
Geon Co -- -- -- --
Georgia Gulf Corp 237 4,310 317 5,765
Granite Construction Inc -- -- -- --
GTECH Holdings Corp+ 200 5,050 440 11,110
Houghton Mifflin Co 304 14,516 211 10,075
Hussmann International
Inc 32 544 385 6,545
Idexx Laboratories Inc+ 400 6,800 440 7,480
Ingram Micro Inc
Class A+ 100 2,525 176 4,444
Intermedia Communications
Inc+ -- -- 100 2,600
Jacobs Engineering Group+ -- -- -- --
Kaydon Corp -- -- -- --
Knoll Inc+ -- -- 176 4,708
Lam Research Corp+ 300 16,931 264 14,900
Lance Inc -- -- -- --
Land's End Inc+ -- -- -- --
Lee Enterprises Inc 498 14,286 -- --
Macromedia Inc+ 400 15,850 352 13,948
Mail-Well Inc+ -- -- 100 1,425
Mascotech Inc -- -- 264 4,554
Media General Inc
Class A 280 13,720 194 9,506
Medpartners Inc+ 710 4,970 1,662 11,634
Mentor Graphics Corp+ 600 5,381 616 5,525
</TABLE>
86
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ann Taylor Stores Inc+ 308 $ 10,203 226 $ 7,486 209 $ 6,923
Arrow International Inc -- -- -- -- 177 5,133
Bally Total Fitness
Holding Corp+ 162 5,194 104 3,335 197 6,316
BEA Systems Inc+ 263 6,345 179 4,318 353 8,516
C-Cube Microsystems Inc+ 263 7,315 357 9,929 718 19,969
Choice Hotels
International Inc+ 1,069 17,371 720 11,700 1,175 19,094
Choicepoint Inc+ 319 20,994 238 15,663 427 28,102
Cirrus Logic Inc+ 1,411 15,786 1,052 11,769 1,434 16,043
Cognex Corp+ 614 18,535 536 16,181 1,248 37,674
Coleman Co Inc+ -- -- -- -- 177 1,626
Commscope Inc+ 694 23,900 546 18,803 1,471 50,658
CompUSA Inc+ 2,391 14,495 2,243 13,598 4,916 29,803
Dal Tile International
Inc+ -- -- -- -- 177 1,571
Department 56 Inc+ 263 7,364 179 5,012 630 17,640
DSP Communications Inc+ -- -- 536 12,596 983 23,101
Etec Systems Inc+ 351 15,444 268 11,792 718 31,592
Ethyl Corp 1,878 9,977 1,268 6,736 2,435 12,936
Federal Signal Corp 707 14,803 716 14,991 1,672 35,007
Ferro Corp 573 13,752 443 10,632 1,179 28,296
First Health Group Corp+ 1,806 38,942 1,700 36,656 3,694 79,652
GenCorp Inc 425 9,138 -- -- -- --
Geon Co -- -- -- -- 265 7,917
Georgia Gulf Corp 653 11,876 415 7,548 665 12,095
Granite Construction Inc 355 8,875 -- -- -- --
GTECH Holdings Corp+ 877 22,144 804 20,301 2,066 52,167
Houghton Mifflin Co 403 19,243 277 13,227 886 42,307
Hussmann International
Inc 898 15,266 712 12,104 1,453 24,701
Idexx Laboratories Inc+ 701 11,917 536 9,112 983 16,711
Ingram Micro Inc
Class A+ 351 8,863 357 9,014 718 18,130
Intermedia Communications
Inc+ 100 2,600 -- -- 188 4,888
Jacobs Engineering Group+ 327 10,791 -- -- -- --
Kaydon Corp 438 13,441 -- -- -- --
Knoll Inc+ 263 7,035 268 7,169 630 16,853
Lam Research Corp+ 438 24,720 446 25,171 1,160 65,467
Lance Inc 419 5,447 -- -- -- --
Land's End Inc+ 479 24,130 -- -- -- --
Lee Enterprises Inc 621 17,815 455 13,053 -- --
Macromedia Inc+ 614 24,330 446 17,673 895 35,464
Mail-Well Inc+ 100 1,425 -- -- 188 2,679
Mascotech Inc -- -- 357 6,158 807 13,921
Media General Inc
Class A 359 17,591 259 12,691 503 24,647
Medpartners Inc+ 3,636 25,452 3,628 25,396 7,544 52,808
Mentor Graphics Corp+ 847 7,597 993 8,906 1,513 13,570
</TABLE>
87
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Metris Companies Inc 320 $ 8,820 224 $ 6,174
Micron Electronics Inc+ -- -- 176 1,705
Newport News Shipbuilding 64 2,012 257 8,079
Nordson Corp 214 10,519 141 6,931
Oakley Inc+ 600 3,675 528 3,234
Pairgain Technologies
Inc+ 300 3,131 616 6,430
PE Corp-Celera Genomics
Group+ 9 259 193 5,549
PetSmart Inc+ 1,200 5,775 1,144 5,506
Pier 1 Imports Inc 550 2,991 1,552 8,439
Pittston Brink's Group 323 7,691 546 13,002
Rexall Sundown Inc+ 100 1,244 628 7,850
Richfood Holdings Inc -- -- 440 8,058
Rollins Inc 388 6,087 185 2,902
Ruby Tuesday Inc 384 6,960 176 3,190
Scholastic Inc+ 200 7,925 176 6,974
Security Dynamics
Technology Inc+ 200 4,725 528 12,474
SkyTel Communications
Inc+ -- -- 352 6,974
Sotheby's Holdings Inc 611 17,795 -- --
Structural Dynamics
Research+ 303 4,886 -- --
Sunglass Hut
International Inc+ 600 7,575 440 5,555
Superior Industries
International Inc 322 9,016 229 6,412
Symantec Corp+ 278 8,340 892 26,760
Talk.com Inc+ 100 1,031 540 5,569
Teletech Holdings Inc+ -- -- 88 979
Thermo Cardiosystems Inc+ 150 1,256 220 1,843
Vlasic Foods
International Inc+ 80 590 318 2,345
Voicestream Wireless
Corp+ -- -- 88 3,630
Wausau-Mosinee Paper Corp 392 5,390 278 3,823
West Teleservices+ -- -- -- --
Western Digital Corp+ 700 4,288 1,232 7,546
Western Wireless Corp
Class A+ -- -- 88 3,405
Whole Foods Market Inc+ 200 7,188 352 12,650
Zenith Electronics Corp+ 44 7 89 14
----------- -----------
TOTAL SMALL CAP GROWTH
STOCKS
-VALUE $ 328,605 $ 461,382
-COST $ 393,401 $ 613,551
SMALL CAP VALUE STOCKS
PERCENT OF NET ASSETS 0.52% 0.45%
7-Eleven Inc+ 1,800 $ 3,713 1,232 $ 2,541
AGCO Corp 300 3,094 792 8,168
AGL Resources Inc 538 9,718 387 6,990
Airgas Inc+ 400 5,250 704 9,240
Alexander & Baldwin Inc 204 4,934 607 14,682
</TABLE>
88
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Metris Companies Inc 454 $ 12,485 290 $ 7,993 278 $ 7,645
Micron Electronics Inc+ 351 3,400 268 2,596 542 5,251
Newport News Shipbuilding 539 16,945 415 13,047 847 26,628
Nordson Corp 257 12,633 186 9,143 340 16,713
Oakley Inc+ 1,152 7,056 814 4,986 1,160 7,105
Pairgain Technologies
Inc+ 1,239 12,932 1,171 12,222 2,761 28,818
PE Corp-Celera Genomics
Group+ 397 11,414 374 10,753 843 24,236
PetSmart Inc+ 2,028 9,760 1,528 7,354 2,950 14,197
Pier 1 Imports Inc 2,730 14,844 2,689 14,621 5,899 32,076
Pittston Brink's Group 1,202 28,623 1,020 24,289 2,512 59,817
Rexall Sundown Inc+ 1,164 14,550 893 11,163 2,143 26,788
Richfood Holdings Inc -- -- 536 9,816 883 16,170
Rollins Inc 565 8,863 357 5,600 696 10,918
Ruby Tuesday Inc 563 10,204 355 6,434 784 14,210
Scholastic Inc+ 175 6,934 179 7,093 353 13,988
Security Dynamics
Technology Inc+ 1,064 25,137 893 21,097 2,055 48,549
SkyTel Communications
Inc+ -- -- -- -- -- --
Sotheby's Holdings Inc 743 21,640 556 16,194 -- --
Structural Dynamics
Research+ 380 6,128 285 4,596 -- --
Sunglass Hut
International Inc+ 977 12,335 625 7,891 1,248 15,756
Superior Industries
International Inc 398 11,144 296 8,288 450 12,600
Symantec Corp+ 1,722 51,660 1,494 44,820 3,403 102,090
Talk.com Inc+ 1,077 11,107 993 10,240 2,155 22,223
Teletech Holdings Inc+ -- -- -- -- 265 2,948
Thermo Cardiosystems Inc+ 263 2,203 268 2,245 498 4,171
Vlasic Foods
International Inc+ 829 6,114 749 5,524 1,792 13,216
Voicestream Wireless
Corp+ -- -- -- -- 265 10,931
Wausau-Mosinee Paper Corp 501 6,889 363 4,991 328 4,510
West Teleservices+ -- -- -- -- 177 1,881
Western Digital Corp+ 2,467 15,110 2,243 13,738 4,993 30,582
Western Wireless Corp
Class A+ -- -- -- -- 265 10,252
Whole Foods Market Inc+ 701 25,192 625 22,461 1,425 51,211
Zenith Electronics Corp+ 279 45 230 37 367 59
----------- ----------- -----------
TOTAL SMALL CAP GROWTH
STOCKS
-VALUE $ 923,782 $ 738,740 $ 1,570,493
-COST $ 1,136,482 $ 943,790 $ 2,050,362
SMALL CAP VALUE STOCKS
PERCENT OF NET ASSETS 0.56% 0.70% 0.82%
7-Eleven Inc+ 2,379 $ 4,907 1,707 $ 3,521 4,110 $ 8,477
AGCO Corp 1,590 16,397 1,528 15,758 3,480 35,888
AGL Resources Inc 699 12,626 498 8,995 459 8,291
Airgas Inc+ 1,502 19,714 1,350 17,719 3,126 41,029
Alexander & Baldwin Inc 1,164 28,154 990 23,946 2,490 60,227
</TABLE>
89
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Anixter International
Inc+ 500 $ 10,531 440 $ 9,268
Apria Healthcare Group
Inc+ 500 8,438 528 8,910
Arch Chemicals Inc 135 2,658 334 6,576
Argonaut Group Inc -- -- 88 2,222
Armco Inc+ 111 763 853 5,864
Aspect Telecommunication
Corp+ -- -- 540 5,974
Battle Mountain Gold Co+ 147 257 1,307 2,287
Beverly Enterprises Inc+ 575 2,875 1,360 6,800
Bob Evans Farms Inc 468 9,536 317 6,459
Boise Cascade Office
Products+ -- -- 88 847
Boston Chicken Inc+ 600 210 500 175
Burlington Industries
Inc+ 729 4,146 419 2,383
Callaway Golf Co 296 2,942 950 9,441
Champion Enterprises Inc+ -- -- -- --
Charming Shoppes Inc+ 59 328 -- --
ChemFirst Inc 35 893 74 1,887
Chesapeake Corp 256 8,656 176 5,951
Chesapeake Energy Corp+ -- -- 352 1,144
Chicago Title Corp 106 4,803 181 8,202
Chris-Craft Industries
Inc+ 123 6,202 243 12,302
Corn Product
International Inc 60 1,954 260 8,466
Corporate Express Inc+ 550 4,898 1,200 10,688
Cypress Semiconductor
Corp+ 800 18,500 739 17,089
Devon Energy Corp+ 14 541 358 13,828
Dura Pharmaceuticals Inc+ -- -- 440 5,858
Earthgrains Co 56 1,351 257 6,200
Extended Stay America
Inc+ 400 3,600 880 7,920
Federal Realty Investment
Trust -- -- -- --
Firstplus Financial
Group+ 200 75 440 165
Flowserve Corp 200 3,163 528 8,349
Footstar Inc+ 46 1,495 216 7,020
Foundation Health
Systems+ 391 4,985 1,443 18,398
Fuller (H B) Co -- -- -- --
Gaylord Entertainment Co
Class A 105 3,203 92 2,806
Glatfelter (P H) Co 486 6,409 246 3,244
Handleman Co+ 59 782 116 1,537
Hanna (M A) Co 280 3,833 572 7,829
Harland (John H) Co 55 1,093 218 4,333
Health Care Property
Investors Inc REIT 300 7,800 264 6,864
Heilig Meyers Co 524 2,784 361 1,918
Horace Mann Educators
Corp 300 9,038 616 18,557
Hunt (J B) Transport
Services -- -- -- --
ICG Communications Inc+ 200 4,175 528 10,956
</TABLE>
90
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Anixter International
Inc+ 438 $ 9,225 625 $ 13,164 1,160 $ 24,432
Apria Healthcare Group
Inc+ 701 11,829 714 12,049 1,248 21,060
Arch Chemicals Inc 604 11,891 606 11,931 1,319 25,968
Argonaut Group Inc -- -- 179 4,520 265 6,691
Armco Inc+ 1,843 12,671 1,547 10,636 3,646 25,066
Aspect Telecommunication
Corp+ 100 1,106 -- -- 1,260 13,939
Battle Mountain Gold Co+ 3,736 6,538 3,080 5,390 6,616 11,578
Beverly Enterprises Inc+ 2,642 13,210 2,459 12,295 5,535 27,675
Bob Evans Farms Inc 659 13,427 421 8,578 1,204 24,532
Boise Cascade Office
Products+ 801 7,710 179 1,723 353 3,398
Boston Chicken Inc+ 700 245 700 245 1,100 385
Burlington Industries
Inc+ 1,096 6,234 769 4,374 1,880 10,693
Callaway Golf Co 1,816 18,047 1,846 18,345 3,935 39,104
Champion Enterprises Inc+ 100 850 -- -- 188 1,598
Charming Shoppes Inc+ 2,105 11,709 1,546 8,600 3,271 18,195
ChemFirst Inc 275 7,013 200 5,100 307 7,829
Chesapeake Corp 316 10,685 237 8,014 674 22,790
Chesapeake Energy Corp+ 976 3,172 546 1,775 984 3,198
Chicago Title Corp 361 16,358 725 32,852 817 37,020
Chris-Craft Industries
Inc+ 457 23,136 316 15,998 211 10,682
Corn Product
International Inc 610 19,863 508 16,542 1,308 42,592
Corporate Express Inc+ 2,347 20,903 2,109 18,783 4,926 43,872
Cypress Semiconductor
Corp+ 1,296 29,970 1,271 29,392 3,000 69,375
Devon Energy Corp+ 832 32,136 700 27,038 1,559 60,216
Dura Pharmaceuticals Inc+ 977 13,006 714 9,505 1,602 21,327
Earthgrains Co 586 14,137 479 11,556 1,369 33,027
Extended Stay America
Inc+ 1,765 15,885 1,618 14,562 3,745 33,705
Federal Realty Investment
Trust -- -- -- -- 353 7,722
Firstplus Financial
Group+ 788 296 714 268 1,590 596
Flowserve Corp 1,152 18,216 982 15,528 2,231 35,278
Footstar Inc+ 457 14,853 341 11,083 678 22,035
Foundation Health
Systems+ 2,702 34,451 2,522 32,156 5,571 71,030
Fuller (H B) Co 197 11,869 -- -- -- --
Gaylord Entertainment Co
Class A 123 3,752 153 4,667 221 6,741
Glatfelter (P H) Co 674 8,888 437 5,763 780 10,286
Handleman Co+ 409 5,419 274 3,631 560 7,420
Hanna (M A) Co 1,211 16,576 1,261 17,260 2,551 34,917
Harland (John H) Co 543 10,792 550 10,931 997 19,815
Health Care Property
Investors Inc REIT 351 9,126 446 11,596 718 18,668
Heilig Meyers Co 831 4,415 586 3,113 1,248 6,630
Horace Mann Educators
Corp 1,240 37,355 1,161 34,975 2,685 80,886
Hunt (J B) Transport
Services 522 7,732 -- -- -- --
ICG Communications Inc+ 1,152 23,904 982 20,377 2,231 46,293
</TABLE>
91
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Imation Corp+ 276 $ 7,780 454 $ 12,797
Indiana Energy Inc -- -- -- --
INMC Mortgage Holdings
Inc REIT 200 2,688 892 11,986
Integrated Device
Technology Inc+ 700 13,650 704 13,728
International Multifoods
Corp -- -- -- --
International Specialty
Products Inc+ -- -- 276 2,605
Interstate Hotels Corp+ 25 91 63 228
Kelly Services Inc
Class A 106 2,981 194 5,456
Kennametal Inc 300 7,950 264 6,996
Lattice Semiconductor+ 100 6,169 352 21,692
Lifepoint Hospital Inc+ 34 235 141 969
Lone Star Steakhouse &
Saloon+ 300 2,288 352 2,684
Longview Fibre Co 554 7,167 475 6,145
LTB Corp 900 5,175 1,408 8,096
Lubrizol Corp 329 8,348 857 21,746
Luby's Cafeteria Inc 45 602 193 2,581
Lyondell Petrochemical 76 1,107 698 10,165
MagneTek Inc+ -- -- -- --
Mark IV Industries Inc 247 4,894 556 11,016
MAXXAM Inc+ -- -- -- --
Michael Foods Inc -- -- -- --
Michaels Stores Inc+ -- -- -- --
Micro Warehouse Inc+ 300 3,675 264 3,234
Mid Atlantic Medical
Services+ 400 3,375 440 3,713
Midas Inc 10 236 128 3,024
MobileMedia Corp+ 300 15 200 10
Modine Manufacturing Co 309 9,193 220 6,545
Neilsen Media Research+ 60 2,201 391 14,345
Oakwood Homes Corp 200 1,213 616 3,735
Ocwen Financial Corp+ -- -- 364 2,434
Officemax Inc+ 700 5,294 1,816 13,734
Olin Corp 270 3,831 669 9,491
Olsten Corp 291 2,983 462 4,736
Omnipoint Corp+ 200 8,100 264 10,692
Overseas Shipholding
Group 393 5,477 273 3,805
Paging Network Inc+ 500 1,547 616 1,906
Pennzoil-Quaker State Co 32 444 408 5,661
Perrigo Co+ 812 6,445 484 3,842
Phycor Inc+ 300 1,219 704 2,860
Pioneer Natural Resources
Co+ 476 5,414 1,329 15,117
Pogo Producing Co 300 6,263 264 5,511
Precision Castparts Corp 100 3,550 264 9,372
Protection One Inc+ -- -- 100 350
</TABLE>
92
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Imation Corp+ 615 $ 17,335 653 $ 18,407 1,528 $ 43,071
Indiana Energy Inc 411 8,715 -- -- -- --
INMC Mortgage Holdings
Inc REIT 1,778 23,892 1,618 21,742 3,491 46,910
Integrated Device
Technology Inc+ 1,590 31,005 714 13,923 2,055 40,072
International Multifoods
Corp 240 5,445 -- -- -- --
International Specialty
Products Inc+ 363 3,426 268 2,529 818 7,720
Interstate Hotels Corp+ 214 776 206 747 331 1,200
Kelly Services Inc
Class A 341 9,591 374 10,519 882 24,806
Kennametal Inc 360 9,540 268 7,102 630 16,695
Lattice Semiconductor+ 614 37,838 625 38,516 1,337 82,393
Lifepoint Hospital Inc+ 582 4,001 436 2,998 1,107 7,611
Lone Star Steakhouse &
Saloon+ 714 5,444 546 4,163 895 6,824
Longview Fibre Co 780 10,091 513 6,637 1,275 16,495
LTB Corp 2,730 15,698 2,511 14,438 6,153 35,380
Lubrizol Corp 1,617 41,031 1,566 39,737 3,403 86,351
Luby's Cafeteria Inc 421 5,631 329 4,400 649 8,680
Lyondell Petrochemical 1,267 18,451 975 14,198 2,460 35,824
MagneTek Inc+ 322 2,979 -- -- -- --
Mark IV Industries Inc 1,126 22,309 948 18,782 2,298 45,529
MAXXAM Inc+ 112 6,398 -- -- -- --
Michael Foods Inc 201 5,565 -- -- -- --
Michaels Stores Inc+ -- -- -- -- 177 5,432
Micro Warehouse Inc+ 526 6,444 357 4,373 718 8,795
Mid Atlantic Medical
Services+ 714 6,024 446 3,763 1,248 10,530
Midas Inc 299 7,064 237 5,599 450 10,631
MobileMedia Corp+ 400 20 300 15 700 35
Modine Manufacturing Co 408 12,138 299 8,895 442 13,150
Neilsen Media Research+ 897 32,909 793 29,093 2,072 76,017
Oakwood Homes Corp 1,239 7,511 1,171 7,099 2,408 14,599
Ocwen Financial Corp+ 726 4,855 636 4,253 1,172 7,838
Officemax Inc+ 3,543 26,794 3,270 24,729 7,292 55,146
Olin Corp 1,308 18,557 1,312 18,614 2,738 38,845
Olsten Corp 1,079 11,060 982 10,066 2,157 22,109
Omnipoint Corp+ 351 14,216 357 14,459 530 21,465
Overseas Shipholding
Group 482 6,718 362 5,045 331 4,613
Paging Network Inc+ 1,415 4,378 1,261 3,901 2,861 8,851
Pennzoil-Quaker State Co 1,283 17,802 986 13,681 1,484 20,591
Perrigo Co+ 1,197 9,501 852 6,763 1,684 13,367
Phycor Inc+ 1,546 6,281 1,573 6,390 3,436 13,959
Pioneer Natural Resources
Co+ 2,509 28,540 2,319 26,379 5,148 58,559
Pogo Producing Co 526 10,980 446 9,310 1,072 22,378
Precision Castparts Corp 526 18,673 547 19,419 1,160 41,180
Protection One Inc+ 200 700 -- -- 200 700
</TABLE>
93
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Public Service Company Of
New Mexico -- $ -- -- $ --
Quest Diagnostics Inc+ 46 1,216 211 5,578
Quorum Health Group Inc+ 50 441 584 5,147
R.R. Donnelley Corp 36 623 252 4,363
Radian Group Inc 100 4,631 264 12,227
Read-Rite Corp+ 400 2,250 440 2,475
Readers Digest
Association Class B 200 5,663 264 7,475
Renaissance Worldwide
Inc+ 200 975 440 2,145
Ruddick Corp -- -- -- --
Ryans Family Steak House+ 119 1,153 454 4,398
Ryerson Tull Inc 207 3,920 381 7,215
Sabre Group Holding Inc+ -- -- 176 9,856
Safety-Kleen Corp+ 87 1,109 379 4,832
Santa Fe Snyder Corp+ 83 809 712 6,942
Sbarro Inc+ -- -- -- --
Schulman (A) Inc 403 7,229 369 6,619
Sensormatic Electronics+ 535 6,253 765 8,941
Sequa Corp Class A+ 110 7,439 -- --
Sequent Computer Systems+ 340 5,993 -- --
Services (B J) Co+ 300 10,275 1,068 36,579
Smith International Inc+ 214 9,991 616 28,760
Smucker (J M) Co Class A 305 7,015 -- --
Standard Register Co 301 8,146 -- --
Steel Dynamics Inc+ -- -- 264 4,752
Stride Rite Corp 63 547 330 2,867
Sunbeam Oster Co Inc+ 300 1,856 1,056 6,534
Sybase Inc+ 700 8,750 616 7,700
Systemax Inc+ 200 1,863 176 1,639
Talbots Inc 200 6,188 176 5,445
Tech Data Corp+ 300 11,119 616 22,831
Tecumseh Products Co
Class A 241 13,737 167 9,519
Terra Industries Inc 500 1,125 352 792
Tidewater Inc 265 8,613 848 27,560
Too Inc+ 28 494 216 3,799
Total Renal Care Holdings
Inc+ -- -- 980 7,901
Triad Hospitals Inc+ 34 380 241 2,696
UCAR International Inc+ 200 4,875 528 12,870
UICI+ 200 5,225 528 13,893
Unifi Inc+ 168 2,268 892 12,042
United Dominion Realty
Trust Inc REIT 400 4,600 1,508 17,342
Universal Corp 181 5,136 528 14,982
Unova Inc+ 34 512 382 5,754
Valero Energy Corp 180 3,825 778 16,533
</TABLE>
94
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Public Service Company Of
New Mexico 570 $ 10,723 420 $ 7,901 -- $ --
Quest Diagnostics Inc+ 451 11,923 347 9,174 829 21,917
Quorum Health Group Inc+ 1,164 10,258 948 8,354 2,243 19,766
R.R. Donnelley Corp 550 9,522 489 8,466 1,320 22,853
Radian Group Inc 526 24,360 536 24,824 1,248 57,798
Read-Rite Corp+ 626 3,521 814 4,579 1,702 9,574
Readers Digest
Association Class B 263 7,446 268 7,588 630 17,837
Renaissance Worldwide
Inc+ 889 4,334 903 4,402 1,702 8,297
Ruddick Corp 626 11,620 468 8,687 -- --
Ryans Family Steak House+ 987 9,562 706 6,839 1,018 9,862
Ryerson Tull Inc 1,298 24,581 1,132 21,437 2,371 44,901
Sabre Group Holding Inc+ 351 19,656 268 15,008 442 24,752
Safety-Kleen Corp+ 965 12,304 773 9,856 1,413 18,016
Santa Fe Snyder Corp+ 1,743 16,994 1,206 11,758 2,696 26,286
Sbarro Inc+ 280 7,700 196 5,390 -- --
Schulman (A) Inc 601 10,780 550 9,866 1,147 20,574
Sensormatic Electronics+ 1,610 18,817 1,036 12,108 1,865 21,797
Sequa Corp Class A+ 120 8,115 91 6,154 -- --
Sequent Computer Systems+ 413 7,279 304 5,358 -- --
Services (B J) Co+ 2,041 69,904 1,796 61,513 4,110 140,768
Smith International Inc+ 1,237 57,752 1,095 51,123 2,496 116,532
Smucker (J M) Co Class A 382 8,786 295 6,785 -- --
Standard Register Co 379 10,257 279 7,550 -- --
Steel Dynamics Inc+ 526 9,468 357 6,426 983 17,694
Stride Rite Corp 883 7,671 731 6,351 1,381 11,997
Sunbeam Oster Co Inc+ 2,028 12,548 1,975 12,220 4,375 27,070
Sybase Inc+ 1,327 16,588 1,171 14,638 2,408 30,100
Systemax Inc+ 263 2,449 179 1,667 453 4,219
Talbots Inc -- -- 179 5,538 353 10,921
Tech Data Corp+ 1,052 38,990 1,071 39,694 2,508 92,953
Tecumseh Products Co
Class A 302 17,214 222 12,654 381 21,717
Terra Industries Inc 714 1,607 546 1,229 1,072 2,412
Tidewater Inc 1,624 52,780 1,326 43,095 3,284 106,730
Too Inc+ 527 9,263 450 7,896 932 16,361
Total Renal Care Holdings
Inc+ 100 806 -- -- 188 1,516
Triad Hospitals Inc+ 582 6,511 536 5,997 1,107 12,385
UCAR International Inc+ 964 23,498 893 21,767 2,143 52,236
UICI+ 877 23,076 804 21,155 2,143 56,388
Unifi Inc+ 1,674 22,599 1,512 20,412 3,350 45,225
United Dominion Realty
Trust Inc REIT 2,830 32,545 2,689 30,924 5,988 68,862
Universal Corp 911 25,850 887 25,169 2,112 59,928
Unova Inc+ 1,027 15,469 730 10,996 1,567 23,603
Valero Energy Corp 1,483 31,514 1,236 26,265 3,003 63,814
</TABLE>
95
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Varco International Inc+ 584 $ 7,227 440 $ 5,445
Varian Medical Systems
Inc 177 3,828 431 9,320
Venator Group Inc+ 187 1,332 947 6,747
Ventas Inc 500 1,906 792 3,020
Vishay Intertechnology
Inc+ 578 12,391 515 11,040
Waddell & Reed Financial
Class A 9 204 68 1,543
Waddell & Reed Financial
Class B 39 890 273 6,228
Wallace Computer Services
Inc 90 1,924 176 3,762
Washington Gas & Light 464 12,383 317 8,460
Weingarten Realty
Investors REIT 200 7,938 176 6,985
White Mountains Insurance -- -- -- --
Wisconsin Central
Transport+ 400 6,375 704 11,220
Witco Corp 216 3,497 874 14,148
Wyndham International
Class A+ 751 2,675 1,911 6,808
Xtra Corp+ 200 9,063 176 7,975
Yellow Corp+ 49 778 196 3,112
----------- -----------
TOTAL SMALL CAP VALUE
STOCKS
-VALUE $ 549,881 $ 1,020,161
-COST $ 782,084 $ 1,435,486
MICRO CAP STOCKS
PERCENT OF NET ASSETS 0.12% 0.08%
Advanta Corp Class B 163 $ 2,486 143 $ 2,181
Airtran Holdings Inc+ 300 1,659 176 974
Alliance Semiconductor
Corp+ -- -- -- --
AMF Bowling Inc+ -- -- 176 704
APAC Teleservices Inc+ 100 238 176 418
Ascent Entertainment
Group+ 249 3,393 258 3,515
Aztec Technology Partners
Inc+ -- -- 161 247
Bandag Inc -- -- 88 2,926
Bandag Inc Class A 100 2,656 88 2,338
Bassett Furniture
Industries 25 509 44 897
Boyd Gaming Corp+ -- -- 176 946
Breed Technologies Inc+ -- -- -- --
Brown Shoe Company Inc 31 539 158 2,745
Campstead Mortgage Corp -- -- 352 1,606
Castle & Cooke Inc+ 215 3,064 120 1,710
Collins & Aikman Corp -- -- -- --
Consolidated Freightways
Corp+ 31 335 159 1,719
ContiFinancial Corp+ -- -- 88 116
Credit Acceptance Corp+ 200 1,175 176 1,034
Crescent Operating Inc+ -- -- 70 333
Crestline Capital Corp
REIT+ 100 1,894 185 3,503
Crown Vantage Inc+ 21 50 42 100
</TABLE>
96
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Varco International Inc+ 1,019 $ 12,610 846 $ 10,469 1,878 $ 23,240
Varian Medical Systems
Inc 820 17,733 795 17,192 1,659 35,876
Venator Group Inc+ 2,578 18,368 2,211 15,753 4,409 31,414
Ventas Inc 1,590 6,062 1,511 5,761 3,280 12,505
Vishay Intertechnology
Inc+ 1,115 23,903 902 19,337 2,111 45,255
Waddell & Reed Financial
Class A 138 3,131 122 2,768 258 5,853
Waddell & Reed Financial
Class B 608 13,870 572 13,049 1,112 25,368
Wallace Computer Services
Inc 263 5,622 277 5,921 718 15,347
Washington Gas & Light 547 14,598 405 10,808 389 10,381
Weingarten Realty
Investors REIT 351 13,930 357 14,168 895 35,520
White Mountains Insurance -- -- -- -- 100 13,025
Wisconsin Central
Transport+ 1,415 22,552 1,350 21,516 2,850 45,422
Witco Corp 1,648 26,677 1,459 23,618 3,310 53,581
Wyndham International
Class A+ 3,624 12,911 3,287 11,710 7,531 26,829
Xtra Corp+ 263 11,917 179 8,111 442 20,028
Yellow Corp+ 513 8,144 267 4,239 386 6,128
----------- ----------- -----------
TOTAL SMALL CAP VALUE
STOCKS
-VALUE $ 2,095,392 $ 1,798,171 $ 3,849,960
-COST $ 2,810,762 $ 2,480,328 $ 5,330,869
MICRO CAP STOCKS
PERCENT OF NET ASSETS 0.11% 0.13% 0.12%
Advanta Corp Class B 238 $ 3,630 194 $ 2,959 336 $ 5,124
Airtran Holdings Inc+ 450 2,489 278 1,538 719 3,977
Alliance Semiconductor
Corp+ -- -- -- -- 221 2,472
AMF Bowling Inc+ 451 1,804 368 1,472 807 3,228
APAC Teleservices Inc+ 451 1,071 457 1,085 630 1,496
Ascent Entertainment
Group+ 351 4,782 354 4,823 700 9,538
Aztec Technology Partners
Inc+ 436 668 388 594 744 1,140
Bandag Inc 175 5,819 89 2,959 265 8,811
Bandag Inc Class A 175 4,648 179 4,755 353 9,377
Bassett Furniture
Industries 175 3,566 107 2,180 182 3,708
Boyd Gaming Corp+ -- -- 368 1,978 719 3,865
Breed Technologies Inc+ -- -- -- -- 189 130
Brown Shoe Company Inc 296 5,143 197 3,423 224 3,892
Campstead Mortgage Corp 801 3,655 725 3,308 1,525 6,958
Castle & Cooke Inc+ 294 4,190 198 2,822 301 4,289
Collins & Aikman Corp -- -- -- -- 453 2,407
Consolidated Freightways
Corp+ 355 3,838 255 2,757 603 6,520
ContiFinancial Corp+ 275 361 278 365 630 827
Credit Acceptance Corp+ -- -- 278 1,633 542 3,184
Crescent Operating Inc+ -- -- -- -- 277 1,316
Crestline Capital Corp
REIT+ 298 5,643 428 8,105 992 18,786
Crown Vantage Inc+ 91 216 72 171 117 278
</TABLE>
97
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Dave & Buster's Inc+ -- $ -- -- $ --
Deltic Timber Corp 140 3,491 145 3,616
Echelon International
Corp+ 68 1,420 47 981
EEX Corp+ 45 214 355 1,686
Enesco Group Inc 220 3,795 150 2,588
Ennis Business Forms Inc -- -- -- --
Exabyte Corp+ -- -- -- --
Fleming Co Inc 2 24 256 3,088
Fritz Companies Inc+ 200 2,275 176 2,002
General Semiconductor
Inc+ 37 363 229 2,247
Genzyme Corp - Tissue
Repair+ 44 85 10 19
Genzyme Corp Molecular
Oncology+ 35 155 96 432
Genzyme Surgical
Products+ 22 144 124 806
Gibson Greetings Inc+ -- -- -- --
Glenayre Technologies
Inc+ 650 2,031 572 1,788
Golden Books Family
Entertainment Inc+ 234 47 -- --
Halter Marine Group Inc+ 273 1,450 261 1,387
Hancock Fabrics Inc -- -- -- --
Hartmarx Corp+ 81 334 202 833
Hearst-Argyle Television+ 300 7,594 704 17,820
Highlands Insurance
Group+ 37 315 67 570
Homebase Inc+ 365 1,597 -- --
Homestead Village
Property Inc+ 75 183 76 185
Imperial Sugar Co -- -- -- --
Information Resources
Inc+ -- -- -- --
Input/Output Inc+ 500 3,688 440 3,245
Intergraph Corp+ 54 300 322 1,791
International Rectifier
Corp+ 500 8,063 440 7,095
Interneuron
Pharmaceuticals Co+ -- -- 352 528
IT Group Inc+ -- -- -- --
John Nuveen & Co Inc
Class A -- -- 88 3,438
Komag Inc+ 400 1,275 528 1,683
Laboratory Corp of
America Holdings+ 660 1,898 367 1,055
Lakes Gaming Inc+ 100 1,131 88 996
Lawson Products Inc -- -- -- --
Leap Wireless
International Inc+ 100 1,738 198 3,440
Marvel Entertainment
Group Inc+ -- -- 200 30
McMoRan Exploration Co+ 46 929 41 828
MEMC Electronic Materials
Inc+ 300 5,963 264 5,247
Mississippi Chemical Corp 11 83 24 182
Momentum Business
Applications Inc+ 17 131 31 238
Morrison Management
Specialist 128 3,008 58 1,363
National Presto
Industries Inc -- -- -- --
</TABLE>
98
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Dave & Buster's Inc+ 90 $ 1,058 -- $ -- -- $ --
Deltic Timber Corp 269 6,708 178 4,439 295 7,357
Echelon International
Corp+ 84 1,754 62 1,294 57 1,190
EEX Corp+ 664 3,154 797 3,786 1,633 7,757
Enesco Group Inc 262 4,520 191 3,295 186 3,209
Ennis Business Forms Inc 216 1,917 -- -- -- --
Exabyte Corp+ 398 1,493 -- -- -- --
Fleming Co Inc 702 8,468 526 6,345 1,165 14,053
Fritz Companies Inc+ 263 2,992 -- -- 353 4,015
General Semiconductor
Inc+ 521 5,112 410 4,023 1,128 11,069
Genzyme Corp - Tissue
Repair+ 162 314 146 283 148 287
Genzyme Corp Molecular
Oncology+ 179 806 171 770 252 1,134
Genzyme Surgical
Products+ 59 384 165 1,073 243 1,580
Gibson Greetings Inc+ 314 1,236 -- -- -- --
Glenayre Technologies
Inc+ 1,130 3,531 814 2,544 1,459 4,559
Golden Books Family
Entertainment Inc+ 274 55 208 42 -- --
Halter Marine Group Inc+ 440 2,338 407 2,162 684 3,634
Hancock Fabrics Inc 400 2,000 -- -- -- --
Hartmarx Corp+ 441 1,819 416 1,716 646 2,665
Hearst-Argyle Television+ 1,327 33,590 1,250 31,641 2,773 70,192
Highlands Insurance
Group+ 151 1,284 121 1,029 191 1,624
Homebase Inc+ 536 2,345 428 1,873 -- --
Homestead Village
Property Inc+ 188 458 201 490 266 648
Imperial Sugar Co 117 717 184 1,127 -- --
Information Resources
Inc+ 353 3,839 -- -- -- --
Input/Output Inc+ 976 7,198 725 5,347 1,072 7,906
Intergraph Corp+ 855 4,756 623 3,465 976 5,429
International Rectifier
Corp+ 877 14,142 625 10,078 1,072 17,286
Interneuron
Pharmaceuticals Co+ -- -- 636 954 895 1,343
IT Group Inc+ 120 1,432 -- -- -- --
John Nuveen & Co Inc
Class A -- -- -- -- -- --
Komag Inc+ 1,064 3,392 814 2,595 1,072 3,417
Laboratory Corp of
America Holdings+ 1,014 2,915 710 2,041 1,281 3,683
Lakes Gaming Inc+ 153 1,731 112 1,267 199 2,251
Lawson Products Inc 173 3,979 -- -- -- --
Leap Wireless
International Inc+ 394 6,846 379 6,585 873 15,168
Marvel Entertainment
Group Inc+ 1,400 210 200 30 600 90
McMoRan Exploration Co+ 79 1,595 41 828 79 1,595
MEMC Electronic Materials
Inc+ 351 6,976 357 7,095 807 16,039
Mississippi Chemical Corp 92 696 66 499 103 779
Momentum Business
Applications Inc+ 72 554 66 507 48 369
Morrison Management
Specialist 188 4,418 118 2,773 228 5,358
National Presto
Industries Inc 102 3,991 72 2,817 -- --
</TABLE>
99
<PAGE>
LifePath Master Portfolios AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Navigant International
Inc+ -- $ -- 81 $ 638
NCH Corp -- -- -- --
Novacare Inc+ -- -- -- --
NPC International Inc+ -- -- -- --
Objective Systems
Integrator Corp+ -- -- 88 242
Ocean Energy Inc+ 891 9,021 1,961 19,855
Octel Corp+ 19 216 118 1,342
OEA Inc -- -- -- --
Oregon Steel Mills Inc -- -- -- --
OshKosh B'Gosh Class A 52 839 86 1,387
Parker Drilling Co+ -- -- -- --
Per-SE Technologies Inc+ 800 2,850 792 2,822
Phillips Van Heusen Corp -- -- -- --
Picturetel Corp+ 400 2,213 352 1,947
Pittston Burlington Group 61 545 141 1,260
Planet Hollywood
International+ -- -- 176 44
Presstek Inc+ 200 1,225 352 2,156
Pride International Inc+ -- -- 352 5,236
Primex Technologies Inc 94 1,962 98 2,046
Roadway Express Inc 46 969 139 2,928
School Specialty Inc+ -- -- 90 1,114
Schweitzer-Mauduit
International Inc 20 271 81 1,099
Service Merchandise Co+ 771 217 -- --
Shoney's Inc+ 97 206 325 691
Sizzler International
Inc+ 254 635 -- --
Skyline Corp 20 555 39 1,082
Stewart & Stevenson
Services 364 4,323 334 3,966
Strattec Security Corp+ 10 349 25 873
Sunburst Hospitality
Corp+ 19 115 147 891
TCI Satellite
Entertainment Class A+ 107 381 477 1,699
ThermoLase Corp+ -- -- 88 171
Topp Inc+ 512 4,544 -- --
TransTexas Gas Corp+ -- -- -- --
U.S. Office Products Co+ -- -- 203 785
US Oncology Inc+ -- -- 176 1,804
Varian Inc+ 177 2,788 431 6,842
Varian Semiconductor
Equipment+ 177 4,016 431 9,805
Vencor Inc+ 500 40 616 49
Vornado Operating Inc+ 20 128 44 281
Watts Industries Inc
Class A 308 6,776 -- --
Wellman Inc 363 6,103 246 4,136
</TABLE>
100
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AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Navigant International
Inc+ 168 $ 1,323 144 $ 1,134 422 $ 3,323
NCH Corp 109 4,851 79 3,516 -- --
Novacare Inc+ 954 1,073 734 826 -- --
NPC International Inc+ 328 3,711 253 2,862 -- --
Objective Systems
Integrator Corp+ -- -- -- -- 277 762
Ocean Energy Inc+ 3,582 36,268 3,388 34,304 7,194 72,839
Octel Corp+ 263 2,992 233 2,650 522 5,938
OEA Inc 270 1,890 299 2,093 -- --
Oregon Steel Mills Inc 262 2,866 178 1,947 -- --
OshKosh B'Gosh Class A 400 6,450 152 2,451 392 6,321
Parker Drilling Co+ 840 4,200 652 3,260 -- --
Per-SE Technologies Inc+ 1,064 3,791 1,171 4,172 1,967 7,007
Phillips Van Heusen Corp 359 3,052 259 2,202 -- --
Picturetel Corp+ 714 3,949 546 3,020 807 4,464
Pittston Burlington Group 287 2,565 197 1,761 455 4,067
Planet Hollywood
International+ 438 110 357 89 530 133
Presstek Inc+ 451 2,762 457 2,799 630 3,859
Pride International Inc+ 701 10,427 714 10,621 1,602 23,830
Primex Technologies Inc 188 3,925 152 3,173 222 4,634
Roadway Express Inc 237 4,992 217 4,571 317 6,677
School Specialty Inc+ 187 2,314 160 1,980 358 4,430
Schweitzer-Mauduit
International Inc 188 2,550 157 2,129 310 4,204
Service Merchandise Co+ 1,428 402 1,091 307 -- --
Shoney's Inc+ 758 1,611 632 1,343 1,252 2,661
Sizzler International
Inc+ 480 1,200 384 960 -- --
Skyline Corp 195 5,411 70 1,943 117 3,247
Stewart & Stevenson
Services 434 5,154 326 3,871 846 10,046
Strattec Security Corp+ 63 2,201 44 1,537 -- --
Sunburst Hospitality
Corp+ 422 2,558 340 2,061 458 2,777
TCI Satellite
Entertainment Class A+ 1,008 3,591 788 2,807 1,649 5,875
ThermoLase Corp+ -- -- -- -- 365 707
Topp Inc+ 633 5,618 470 4,171 -- --
TransTexas Gas Corp+ -- -- -- -- 265 149
U.S. Office Products Co+ 521 2,019 460 1,783 906 3,510
US Oncology Inc+ -- -- 179 1,835 353 3,618
Varian Inc+ 820 13,018 795 12,621 1,659 26,337
Varian Semiconductor
Equipment+ 820 18,655 795 18,086 1,659 37,742
Vencor Inc+ 1,315 105 1,053 84 2,185 175
Vornado Operating Inc+ 90 574 180 1,148 159 1,014
Watts Industries Inc
Class A 407 8,954 298 6,556 -- --
Wellman Inc 434 7,297 326 5,481 846 14,223
</TABLE>
101
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Workflow Management Inc+ -- $ -- 107 $ 1,418
Xoma Ltd+ 188 858 -- --
----------- -----------
TOTAL MICRO CAP STOCKS
-VALUE $ 123,867 $ 177,828
-COST $ 316,468 $ 416,193
INTERNATIONAL STOCKS
(EXCEPT JAPAN)
PERCENT OF NET ASSETS 4.34% 7.50%
Aegon NV ADR
(Netherlands) 116 $ 10,070 785 $ 68,148
Alcatel Alsthom Compagnie
Generale d'electricite
ADR (France) 2,889 89,378 10,492 324,596
Allied Irish Banks PLC
ADR (Ireland) 4,438 114,833 16,406 424,505
Allied Zurich PLC ADR 2,120 52,668 8,258 205,158
Astrazeneca PLC ADR 3,573 140,687 12,905 508,134
Axa-UAP ADR (France) 1,875 117,422 5,908 369,989
Banco Bilbao Vizcaya ADR
(Spain) 3,310 44,478 11,708 157,326
Benetton SpA ADR (Italy) 1,707 65,933 6,262 241,870
BP Amoco PLC ADR (Great
Britain) 1,754 196,667 8,350 936,244
Branco Santander Central
ADR 10,254 103,181 37,548 377,827
British Airways PLC ADR
(UK) 490 32,554 1,900 126,231
British American Tobacco
PLC ADR (UK) 1,021 17,612 4,358 75,176
British Sky Broadcasting
ADR (UK) 547 30,906 1,985 112,153
British Steel PLC ADR
(UK) 518 13,436 1,572 40,774
British
Telecommunications PLC
ADR (UK) 1,764 271,877 6,123 943,707
Broken Hill Propriety Co
Ltd ADR (Australia) 520 11,245 1,878 40,612
Cable & Wireless Ltd ADR 9,423 212,613 33,656 759,362
Cadbury Schweppes PLC ADR
(UK) 2,434 61,763 8,724 221,372
Coles Myer Ltd ADR
(Australia) 914 41,016 2,932 131,574
Daimler-Chrysler AG 3,789 284,885 15,398 1,157,737
Deutsche Telekom Ag ADR
(Germany) 3,726 165,341 13,258 588,324
Diageo PLC ADR (UK) 2,987 123,774 10,695 443,174
ELF Aquitaine ADR
(France) 1,256 110,607 4,412 388,532
Elsevier NV ADR
(Netherlands) 2,927 68,419 10,761 251,538
Ericsson L M Telephone
ADR (Sweden) 2,032 66,167 7,026 228,784
Fiat SpA ADR 1,549 50,343 5,615 182,488
Glaxo Holdings PLC ADR
(UK) 2,860 151,401 9,892 523,658
Hanson PLC ADR (UK) 1,899 80,470 6,656 282,048
Imperial Chemical
Industries PLC ADR (UK) 849 38,842 3,141 143,701
Jefferson Smurfit Group
ADR (Ireland) 605 18,074 2,160 64,530
KLM Royal Dutch Airlines
ADR (Netherlands) 193 5,247 855 23,245
Koninklijke Ahold NV ADR
(Netherlands) 2,362 84,442 8,403 300,407
</TABLE>
102
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Workflow Management Inc+ 223 $ 2,955 192 $ 2,544 429 $ 5,684
Xoma Ltd+ 269 1,227 272 1,241 -- --
----------- ----------- -----------
TOTAL MICRO CAP STOCKS
-VALUE $ 396,857 $ 323,679 $ 587,262
-COST $ 873,143 $ 712,440 $ 1,222,754
INTERNATIONAL STOCKS
(EXCEPT JAPAN)
PERCENT OF NET ASSETS 10.60% 13.58% 15.66%
Aegon NV ADR
(Netherlands) 2,766 $ 240,123 1,733 $ 150,446 3,397 $ 294,902
Alcatel Alsthom Compagnie
Generale d'electricite
ADR (France) 24,784 766,755 21,680 670,725 48,653 1,505,202
Allied Irish Banks PLC
ADR (Ireland) 34,669 897,060 32,445 839,514 71,333 1,845,741
Allied Zurich PLC ADR 17,502 434,813 16,798 417,323 30,471 757,009
Astrazeneca PLC ADR 27,536 1,084,230 25,856 1,018,080 54,799 2,157,711
Axa-UAP ADR (France) 14,497 907,875 12,278 768,910 27,460 1,719,683
Banco Bilbao Vizcaya ADR
(Spain) 27,795 373,495 24,603 330,603 54,781 736,120
Benetton SpA ADR (Italy) 14,832 572,886 13,116 506,606 29,076 1,123,061
BP Amoco PLC ADR (Great
Britain) 19,294 2,163,340 17,054 1,912,180 15,781 1,769,445
Branco Santander Central
ADR 77,228 777,107 74,088 745,511 156,336 1,573,131
British Airways PLC ADR
(UK) 4,395 291,993 4,029 267,677 8,899 591,227
British American Tobacco
PLC ADR (UK) 14,803 255,352 10,900 188,025 23,674 408,377
British Sky Broadcasting
ADR (UK) 4,877 275,551 4,258 240,577 9,413 531,835
British Steel PLC ADR
(UK) 4,042 104,839 3,220 83,519 8,073 209,393
British
Telecommunications PLC
ADR (UK) 14,723 2,269,182 12,865 1,982,818 28,597 4,407,513
Broken Hill Propriety Co
Ltd ADR (Australia) 4,701 101,659 3,912 84,597 9,287 200,831
Cable & Wireless Ltd ADR 76,696 1,730,454 70,029 1,580,025 150,091 3,386,428
Cadbury Schweppes PLC ADR
(UK) 18,622 472,533 17,356 440,409 38,468 976,126
Coles Myer Ltd ADR
(Australia) 7,165 321,529 6,359 285,360 14,349 643,911
Daimler-Chrysler AG 35,749 2,687,878 31,555 2,372,542 55,389 4,164,560
Deutsche Telekom Ag ADR
(Germany) 31,315 1,389,603 27,280 1,210,550 61,130 2,712,644
Diageo PLC ADR (UK) 25,702 1,065,027 22,526 933,421 50,128 2,077,179
ELF Aquitaine ADR
(France) 10,329 909,598 8,965 789,480 19,750 1,739,234
Elsevier NV ADR
(Netherlands) 25,206 589,190 22,121 517,078 49,406 1,154,865
Ericsson L M Telephone
ADR (Sweden) 16,884 549,785 14,628 476,324 33,171 1,080,131
Fiat SpA ADR 13,350 433,875 11,689 379,876 25,726 836,079
Glaxo Holdings PLC ADR
(UK) 23,531 1,245,672 20,636 1,092,418 46,092 2,439,995
Hanson PLC ADR (UK) 16,027 679,144 14,092 597,143 31,166 1,320,659
Imperial Chemical
Industries PLC ADR (UK) 7,533 344,635 6,773 309,865 15,047 688,400
Jefferson Smurfit Group
ADR (Ireland) 5,140 153,558 4,051 121,024 10,394 310,521
KLM Royal Dutch Airlines
ADR (Netherlands) 1,871 50,868 1,497 40,700 3,778 102,714
Koninklijke Ahold NV ADR
(Netherlands) 19,860 709,995 17,404 622,193 38,407 1,373,050
</TABLE>
103
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Koninklijke Philips
Electric NV ADR 436 $ 44,826 1,299 $ 133,553
Louis Vuitton Moet
Hennessey ADR (France) 831 50,691 3,053 186,233
Montedison SpA ADR 1,679 25,605 5,831 88,923
National Australia Bank
Ltd ADR (Australia) 903 68,515 3,131 237,565
National Power ADR (UK) 738 21,402 2,500 72,500
News Corporation Ltd 674 19,757 2,480 72,695
Nokia Corp 1,012 84,376 3,476 289,812
Novo Nordisk A/S ADR
(Denmark) 1,992 116,034 6,961 405,478
Premier Farnell PLC ADR
(UK) 1,999 17,491 7,319 64,041
Repsol SA 2,101 43,858 7,700 160,738
Reuters Group PLC ADR
(UK) 484 42,683 1,913 168,703
Rhone Poulenc Rorer
Class A 1,714 83,236 6,355 308,615
Royal Dutch Petroleum
Corp 3,076 190,328 10,868 672,458
SKF AB ADR (Sweden) 521 11,820 1,931 43,810
SmithKline Beecham PLC
ADR (UK) 1,645 104,869 6,095 388,556
Swedish Match AB ADR
(Sweden) 852 34,719 2,502 101,957
Tele Danmark A/S ADR
(Denmark) 2,898 81,506 10,056 282,825
Telecommunications of New
Zealand Corp ADR (New
Zealand) 859 30,602 3,058 108,941
Telefonica de Espana SA
ADR (Spain)+ 1,143 55,078 4,818 232,167
Total Compagnie Francaise
des Petroles SA ADR
(France) 1,628 105,922 5,675 369,230
Unilever NV 2,645 182,174 9,250 637,094
Vodafone Group PLC ADR
(UK) 1,130 226,636 4,744 951,469
Westpac Banking Corp ADR
(Australia) 1,236 37,698 4,558 139,019
WMC Ltd ADR (Japan) 830 14,733 2,937 52,132
----------- -----------
TOTAL INTERNATIONAL
STOCKS (EXCEPT JAPAN)
-VALUE $ 4,570,910 $16,811,438
-COST $ 3,182,274 $11,166,944
JAPANESE STOCKS
PERCENT OF NET ASSETS 1.26% 2.45%
Canon Inc ADR (Japan) 990 $ 29,576 4,630 $ 138,321
CSK Corp ADR (Japan) 1,416 38,675 5,920 161,690
Fuji Photo Film Co Ltd
ADR (Japan) 675 24,638 3,060 111,690
Hitachi Ltd ADR (Japan) 532 53,932 2,424 245,733
Honda Motor Co Ltd ADR
(Japan) 433 35,100 1,785 144,697
Ito Yokado Co Ltd ADR
(Japan) 1,320 98,340 4,910 365,795
Japan Air Lines Co ADR
(Japan) 7,308 55,724 30,340 231,343
Kirin Brewery Co ADR
(Japan) 1,197 143,939 4,882 587,061
Kubota Corp ADR (Japan) 1,034 64,754 4,543 284,505
Kyocera Corp ADR (Japan) 660 44,014 2,558 170,587
</TABLE>
104
<PAGE>
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Koninklijke Philips
Electric NV ADR 3,185 $ 327,507 2,873 $ 295,380 6,315 $ 649,261
Louis Vuitton Moet
Hennessey ADR (France) 7,095 432,795 6,486 395,646 13,999 853,939
Montedison SpA ADR 16,507 251,732 13,247 202,017 29,877 455,624
National Australia Bank
Ltd ADR (Australia) 7,502 569,214 6,497 492,960 14,645 1,111,189
National Power ADR (UK) 6,031 174,899 5,421 157,209 12,015 348,435
News Corporation Ltd 6,004 175,992 5,125 150,227 11,975 351,017
Nokia Corp 7,632 636,318 7,222 602,134 15,102 1,259,129
Novo Nordisk A/S ADR
(Denmark) 16,436 957,397 14,464 842,528 32,207 1,876,058
Premier Farnell PLC ADR
(UK) 17,299 151,366 14,076 123,165 34,009 297,579
Repsol SA 16,625 347,047 15,850 330,869 33,139 691,777
Reuters Group PLC ADR
(UK) 4,704 414,834 4,156 366,507 9,081 800,831
Rhone Poulenc Rorer
Class A 15,106 733,585 13,342 647,921 29,545 1,434,779
Royal Dutch Petroleum
Corp 25,712 1,590,930 22,430 1,387,856 50,272 3,110,580
SKF AB ADR (Sweden) 4,677 106,109 3,964 89,933 9,561 216,915
SmithKline Beecham PLC
ADR (UK) 14,571 928,901 12,818 817,148 28,617 1,824,334
Swedish Match AB ADR
(Sweden) 5,527 225,225 5,155 210,066 11,093 452,040
Tele Danmark A/S ADR
(Denmark) 21,762 612,056 20,124 565,988 44,352 1,247,400
Telecommunications of New
Zealand Corp ADR (New
Zealand) 7,273 259,101 6,371 226,967 14,540 517,988
Telefonica de Espana SA
ADR (Spain)+ 11,597 558,830 10,341 498,307 22,477 1,083,110
Total Compagnie Francaise
des Petroles SA ADR
(France) 13,714 892,267 11,867 772,097 26,865 1,747,904
Unilever NV 23,607 1,625,932 20,283 1,396,992 44,884 3,091,386
Vodafone Group PLC ADR
(UK) 11,624 2,331,339 10,101 2,025,882 23,138 4,640,615
Westpac Banking Corp ADR
(Australia) 10,939 333,640 9,713 296,247 21,632 659,776
WMC Ltd ADR (Japan) 7,149 126,895 6,295 111,736 14,218 252,370
----------- ----------- -----------
TOTAL INTERNATIONAL
STOCKS (EXCEPT JAPAN)
-VALUE $39,613,515 $34,981,301 $73,811,713
-COST $27,426,307 $24,572,192 $56,546,736
JAPANESE STOCKS
PERCENT OF NET ASSETS 3.66% 4.32% 5.04%
Canon Inc ADR (Japan) 11,845 $ 353,869 9,605 $ 286,949 20,620 $ 616,023
CSK Corp ADR (Japan) 14,920 407,503 12,111 330,782 25,952 708,814
Fuji Photo Film Co Ltd
ADR (Japan) 7,624 278,276 6,236 227,614 13,350 487,275
Hitachi Ltd ADR (Japan) 5,958 603,992 4,864 493,088 10,276 1,041,730
Honda Motor Co Ltd ADR
(Japan) 4,477 362,917 3,642 295,230 7,644 619,642
Ito Yokado Co Ltd ADR
(Japan) 12,310 917,095 10,012 745,894 21,404 1,594,598
Japan Air Lines Co ADR
(Japan) 76,075 580,072 62,174 474,077 132,887 1,013,263
Kirin Brewery Co ADR
(Japan) 11,966 1,438,912 9,680 1,164,020 20,852 2,507,453
Kubota Corp ADR (Japan) 11,376 712,422 9,285 581,473 19,660 1,231,208
Kyocera Corp ADR (Japan) 6,152 410,262 4,960 330,770 10,654 710,489
</TABLE>
105
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Makita Corp ADR (Japan) 1,020 $ 12,368 4,293 $ 52,053
Matsushita Electric
Industries Co 257 51,673 933 187,591
Mitsubishi Corp ADR
(Japan) 2,094 34,798 14,125 234,726
Mitsui & Co Ltd ADR
(Japan) 460 64,515 1,875 262,969
NEC Corp ADR (Japan) 883 71,082 3,613 290,847
Nippon Telegraph &
Telegraph ADR (Japan) 1,424 80,456 5,469 308,999
Nissan Motor Co Ltd ADR
(Japan) 2,735 31,282 11,226 128,397
Pioneer Corp ADR 1,592 28,258 6,817 121,002
Ricoh Co Ltd ADR (Japan) 477 42,461 2,099 186,847
SONY Corp ADR (Japan) 368 46,851 1,482 188,677
Tokio Marine & Fire
Insurance Co ADR
(Japan) 2,818 166,262 11,360 670,240
Toyota Motor Corp ADR
(Japan) 1,678 105,609 6,761 425,520
----------- -----------
TOTAL JAPANESE STOCKS
-VALUE $ 1,324,307 $ 5,499,290
-COST $ 1,138,759 $ 4,400,253
</TABLE>
106
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Makita Corp ADR (Japan) 10,709 $ 129,847 8,797 $ 106,664 18,833 $ 228,350
Matsushita Electric
Industries Co 2,061 414,390 1,721 346,029 3,566 716,989
Mitsubishi Corp ADR
(Japan) 35,518 590,231 29,050 482,747 61,890 1,028,476
Mitsui & Co Ltd ADR
(Japan) 4,822 676,286 3,934 551,744 8,395 1,177,399
NEC Corp ADR (Japan) 9,110 733,355 7,314 588,777 15,849 1,275,845
Nippon Telegraph &
Telegraph ADR (Japan) 13,740 776,310 11,158 630,427 23,774 1,343,231
Nissan Motor Co Ltd ADR
(Japan) 28,354 324,299 23,199 265,339 49,557 566,808
Pioneer Corp ADR 17,194 305,194 14,037 249,157 29,956 531,719
Ricoh Co Ltd ADR (Japan) 5,259 468,142 4,125 367,196 9,083 808,544
SONY Corp ADR (Japan) 3,550 451,959 2,933 373,408 6,266 797,740
Tokio Marine & Fire
Insurance Co ADR
(Japan) 28,386 1,674,774 22,969 1,355,171 49,308 2,909,172
Toyota Motor Corp ADR
(Japan) 17,081 1,075,035 13,969 879,174 29,744 1,872,013
----------- ----------- -----------
TOTAL JAPANESE STOCKS
-VALUE $13,685,142 $11,125,730 $23,786,781
-COST $11,162,215 $ 8,871,227 $18,870,085
</TABLE>
107
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
WARRANTS
PERCENT OF NET ASSETS 0.00% 0.00%
Edison Brothers Stores
(09/26/05)+ -- $ -- -- $ --
Golden State Bancorp
(01/01/01)+ 200 300 500 766
Marvel Enterprises
(10/02/01)+ -- -- 14 8
Morrison Knudsen Corp
(03/11/03)+ 4 13 17 56
Total Fina (08/08/03)+ -- -- 81 1,924
----------- -----------
TOTAL WARRANTS
- -VALUE $ 313 $ 2,754
- -COST $ 1,154 $ 2,259
TOTAL COMMON STOCKS
-VALUE $21,461,786 $91,535,859
-COST $15,593,056 $64,506,093
</TABLE>
108
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
WARRANTS
PERCENT OF NET ASSETS 0.00% 0.00% 0.00%
Edison Brothers Stores
(09/26/05)+ 16 $ -- -- $ -- -- $ --
Golden State Bancorp
(01/01/01)+ 800 1,200 900 1,378 1,900 2,850
Marvel Enterprises
(10/02/01)+ 105 57 14 8 44 24
Morrison Knudsen Corp
(03/11/03)+ 27 89 25 83 42 139
Total Fina (08/08/03)+ 81 1,924 81 1,924 162 3,848
----------- ----------- -----------
TOTAL WARRANTS
-VALUE $ 3,270 $ 3,393 $ 6,861
-COST $ 9,202 $ 4,847 $ 7,981
TOTAL COMMON STOCKS
-VALUE $240,092,251 $200,751,399 $451,696,650
-COST $169,400,711 $140,264,186 $331,265,110
</TABLE>
109
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
PRINCIPAL VALUE PRINCIPAL VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
LONG-TERM GOVERNMENT
BONDS
PERCENT OF NET ASSETS 9.81% 6.24%
U.S. Treasury Bonds,
4.75%-14.00%,
02/15/01-11/15/28 $8,950,000 $10,316,968 $12,000,000 $13,997,643
----------- -----------
TOTAL LONG-TERM
GOVERNMENT BONDS
-VALUE $10,316,968 $13,997,643
-COST $10,538,767 $14,183,529
INTERMEDIATE-TERM
GOVERNMENT BONDS
PERCENT OF NET ASSETS 51.13% 42.17%
U.S. Treasury Notes,
4.00%-8.50%,
09/30/00-11/15/08 $53,175,000 $53,777,368 $93,620,000 $94,598,856
----------- -----------
TOTAL INTERMEDIATE-TERM
GOVERNMENT BONDS
-VALUE $53,777,368 $94,598,856
-COST $54,399,156 $96,064,365
</TABLE>
110
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- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
PRINCIPAL VALUE PRINCIPAL VALUE PRINCIPAL VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
LONG-TERM GOVERNMENT
BONDS
PERCENT OF NET ASSETS 5.46% 11.20% 3.15%
U.S. Treasury Bonds,
4.75%-14.00%,
02/15/01-11/15/28 $17,650,000 $20,398,735 $24,890,000 $28,842,775 $12,700,000 $14,847,206
----------- ----------- -----------
TOTAL LONG-TERM
GOVERNMENT BONDS
-VALUE $20,398,735 $28,842,775 $14,847,206
-COST $21,203,865 $29,660,493 $15,645,288
INTERMEDIATE-TERM
GOVERNMENT BONDS
PERCENT OF NET ASSETS 25.01% 5.41% 0.37%
U.S. Treasury Notes,
4.00%-8.50%,
09/30/00-11/15/08 $92,705,000 $93,489,258 $13,750,000 $13,919,777 $1,700,000 $ 1,732,401
----------- ----------- -----------
TOTAL INTERMEDIATE-TERM
GOVERNMENT BONDS
-VALUE $93,489,258 $13,919,777 $ 1,732,401
-COST $94,778,500 $14,260,878 $ 1,743,504
</TABLE>
111
<PAGE>
LifePath Master Portfolios AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
----------------------- -----------------------
PRINCIPAL VALUE PRINCIPAL VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
CASH EQUIVALENTS
PERCENT OF NET ASSETS 1.94% 6.62%
Dreyfus Institutional
Money Market Fund++ $ 45,280 $ 45,280 $ 953,557 $ 953,557
Janus Institutional Money
Market Fund++ -- -- 8,900,000 8,900,000
Merrimac Institutional
Money Market Fund++ 2,000,000 2,000,000 5,000,000 5,000,000
----------- -----------
TOTAL CASH EQUIVALENTS
-VALUE $ 2,045,280 $14,853,557
-COST $ 2,045,280 $14,853,557
REPURCHASE AGREEMENTS
PERCENT OF NET ASSETS 18.00% 7.92%
Morgan Stanley Tri Party
Repurchase Agreement,
dated 8/31/99, due
9/1/99, with a maturity
value of $62,640,800
and an effective yield
of 5.14%,
collateralized by U.S.
Government obligations
with a rate of 5.28%,
with a maturity date of
9/15/99 and with an
aggregate market value
of $63,722,191 $18,930,118 $18,930,118 $17,760,821 $17,760,821
----------- -----------
TOTAL REPURCHASE
AGREEMENTS
-VALUE $18,930,118 $17,760,821
-COST $18,930,118 $17,760,821
TOTAL INVESTMENTS IN
SECURITIES
-VALUE $106,531,520 $232,746,736
-COST## $101,506,377 $207,368,365
TOTAL INVESTMENTS IN
SECURITIES 101.28% $106,531,520 103.76% $232,746,736
Other Assets and
Liabilities, Net (1.28)% (1,346,499) (3.76)% (8,440,441)
---------- ----------- ---------- -----------
TOTAL NET ASSETS 100.00% $105,185,021 100.00% $224,306,295
========== =========== ========== ===========
</TABLE>
- --------------------------------------------------------------------------------
+ NON-INCOME EARNING SECURITIES.
++ REPRESENTS INVESTMENT OF COLLATERAL RECEIVED FROM SECURITIES LENDING
TRANSACTIONS. SEE NOTE 4.
<TABLE>
<S> <C> <C> <C> <C>
## COST FOR FEDERAL
INCOME TAX PURPOSES IS: $101,506,377 $207,368,365
Net unrealized
appreciation consists
of:
Gross Unrealized
Appreciation 7,119,393 30,270,627
Gross Unrealized
Depreciation (2,094,250) (4,892,256)
----------- -----------
NET UNREALIZED
APPRECIATION $ 5,025,143 $25,378,371
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
112
<PAGE>
AUGUST 31, 1999 (UNAUDITED) LifePath Master Portfolios
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
----------------------- ----------------------- -----------------------
PRINCIPAL VALUE PRINCIPAL VALUE PRINCIPAL VALUE
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
CASH EQUIVALENTS
PERCENT OF NET ASSETS 7.45% 6.03% 9.02%
Dreyfus Institutional
Money Market Fund++ $ 228,174 $ 228,174 $ 625,104 $ 625,104 $ 513,468 $ 513,468
Janus Institutional Money
Market Fund++ 9,500,000 9,500,000 4,900,000 4,900,000 21,000,000 21,000,000
Merrimac Institutional
Money Market Fund++ 18,100,000 18,100,000 10,000,000 10,000,000 21,000,000 21,000,000
----------- ----------- -----------
TOTAL CASH EQUIVALENTS
-VALUE $27,828,174 $15,525,104 $42,513,468
-COST $27,828,174 $15,525,104 $42,513,468
REPURCHASE AGREEMENTS
PERCENT OF NET ASSETS 4.05% 2.76% 0.74%
Morgan Stanley Tri Party
Repurchase Agreement,
dated 8/31/99, due
9/1/99, with a maturity
value of $62,640,800
and an effective yield
of 5.14%,
collateralized by U.S.
Government obligations
with a rate of 5.28%,
with a maturity date of
9/15/99 and with an
aggregate market value
of $63,722,191 $15,132,858 $15,132,858 $7,118,017 $ 7,118,017 $3,510,068 $ 3,510,068
----------- ----------- -----------
TOTAL REPURCHASE
AGREEMENTS
-VALUE $15,132,858 $ 7,118,017 $ 3,510,068
-COST $15,132,858 $ 7,118,017 $ 3,510,068
TOTAL INVESTMENTS IN
SECURITIES
-VALUE $396,941,276 $266,157,072 $514,299,793
-COST## $328,344,108 $206,828,678 $394,677,438
TOTAL INVESTMENTS IN
SECURITIES 106.21% $396,941,276 103.36% $266,157,072 109.08% $514,299,793
Other Assets and
Liabilities, Net (6.21)% (23,191,506) (3.36)% (8,643,579) (9.08)% (42,822,285)
---------- ----------- ---------- ----------- ---------- -----------
TOTAL NET ASSETS 100.00% $373,749,770 100.00% $257,513,493 100.00% $471,477,508
========== =========== ========== =========== ========== ===========
</TABLE>
- --------------------------------------------------------------------------------
+ NON-INCOME EARNING SECURITIES.
++ REPRESENTS INVESTMENT OF COLLATERAL RECEIVED FROM SECURITIES LENDING
TRANSACTIONS. SEE NOTE 4.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
## COST FOR FEDERAL
INCOME TAX PURPOSES IS: $328,344,108 $206,828,678 $394,677,438
Net unrealized
appreciation consists
of:
Gross Unrealized
Appreciation 77,305,315 67,175,473 136,346,878
Gross Unrealized
Depreciation (8,708,147) (7,847,079) (16,724,523)
----------- ----------- -----------
NET UNREALIZED
APPRECIATION $68,597,168 $59,328,394 $119,622,355
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
113
<PAGE>
LifePath Funds
STATEMENT OF ASSETS AND LIABILITIES - AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
MASTER PORTFOLIO MASTER PORTFOLIO
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at
market value
(see cost below)
(Note 1) $106,531,520 $232,746,736
Cash 0 422
RECEIVABLES:
Investments sold 88 4,946,733
Dividends and Interest 797,324 1,676,591
TOTAL ASSETS 107,328,932 239,370,482
LIABILITIES
PAYABLES:
Investment securities
purchased 0 0
Collateral for
securities
loaned (Note 4) 2,045,280 14,853,557
Due to BGI (Note 2) 98,631 210,630
TOTAL LIABILITIES 2,143,911 15,064,187
TOTAL NET ASSETS $105,185,021 $224,306,295
INVESTMENTS AT COST $101,506,377 $207,368,365
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
114
<PAGE>
LifePath Funds
STATEMENT OF ASSETS AND LIABILITIES - AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
MASTER PORTFOLIO MASTER PORTFOLIO MASTER PORTFOLIO
<S> <C> <C> <C>
ASSETS
INVESTMENTS:
In securities, at
market value
(see cost below)
(Note 1) $396,941,276 $266,157,072 $514,299,793
Cash 975 0 0
RECEIVABLES:
Investments sold 4,050,461 6,825,504 6,323,726
Dividends and Interest 1,818,319 893,408 1,021,776
TOTAL ASSETS 402,811,031 273,875,984 521,645,295
LIABILITIES
PAYABLES:
Investment securities
purchased 884,374 593,613 7,204,663
Collateral for
securities
loaned (Note 4) 27,828,174 15,525,104 42,513,468
Due to BGI (Note 2) 348,713 243,774 449,656
TOTAL LIABILITIES 29,061,261 16,362,491 50,167,787
TOTAL NET ASSETS $373,749,770 $257,513,493 $471,477,508
INVESTMENTS AT COST $328,344,108 $206,828,678 $394,677,438
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
115
<PAGE>
LifePath Funds
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010
MASTER PORTFOLIO MASTER PORTFOLIO
<S> <C> <C>
INVESTMENT INCOME
Dividends+ $ 200,251 $ 885,027
Interest++ 2,425,218 3,769,186
TOTAL INVESTMENT INCOME 2,625,469 4,654,213
EXPENSES (NOTE 2)
Advisory Fees 318,397 676,003
TOTAL EXPENSES 318,397 676,003
NET INVESTMENT INCOME 2,307,072 3,978,210
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain
(loss) on sale of
investments 1,266,502 13,220,474
Net change in
unrealized appreciation
(depreciation) of
investments (1,145,884) (8,153,521)
NET GAIN (LOSS) ON
INVESTMENTS 120,618 5,066,953
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $ 2,427,690 $ 9,045,163
- -------------------------------------------------------------
+ NET OF FOREIGN
WITHHOLDING TAX OF: $ 4,136 $ 17,472
++ INTEREST INCOME
INCLUDES SECURITIES
LENDING INCOME OF: $ 9,198 $ 25,157
The accompanying notes are an integral part of these
financial statements.
</TABLE>
116
<PAGE>
LifePath Funds
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED AUGUST 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
MASTER PORTFOLIO MASTER PORTFOLIO MASTER PORTFOLIO
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends+ $ 2,050,305 $ 1,851,342 $ 3,762,173
Interest++ 3,601,034 1,588,991 664,154
TOTAL INVESTMENT INCOME 5,651,339 3,440,333 4,426,327
EXPENSES (NOTE 2)
Advisory Fees 1,057,954 780,861 1,419,531
TOTAL EXPENSES 1,057,954 780,861 1,419,531
NET INVESTMENT INCOME 4,593,385 2,659,472 3,006,796
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain
(loss) on sale of
investments 23,855,929 26,438,411 38,479,075
Net change in
unrealized appreciation
(depreciation) of
investments (10,029,585) (12,474,479) (5,422,748)
NET GAIN (LOSS) ON
INVESTMENTS 13,826,344 13,963,932 33,056,327
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $ 18,419,729 $ 16,623,404 $ 36,063,123
- -------------------------------------------------------------
- -------------------------------------------------------------
+ NET OF FOREIGN
WITHHOLDING TAX OF: $ 41,232 $ 37,584 $ 74,477
++ INTEREST INCOME
INCLUDES SECURITIES
LENDING INCOME OF: $ 51,104 $ 40,635 $ 86,710
The accompanying notes are an integral part of these
financial statements.
</TABLE>
117
<PAGE>
LifePath Funds
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2000 MASTER PORTFOLIO
----------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999
<S> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
Net investment income $ 2,307,072 $ 4,542,654
Net realized gain
(loss) on sale of
investments 1,266,502 4,718,618
Net change in
unrealized
appreciation
(depreciation) of
investments (1,145,884) (1,372,957)
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 2,427,690 7,888,315
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM BENEFICIAL
INTEREST TRANSACTIONS (13,983,079) (7,346,906)
INCREASE (DECREASE) IN
NET ASSETS (11,555,389) 541,409
NET ASSETS:
Beginning net assets 116,740,410 116,199,001
ENDING NET ASSETS $105,185,021 $116,740,410
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
118
<PAGE>
LifePath Funds
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2010 MASTER PORTFOLIO LIFEPATH 2020 MASTER PORTFOLIO
---------------------------------- ----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999 (UNAUDITED) FEBRUARY 28, 1999
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
Net investment income $ 3,978,210 $ 7,047,953 $ 4,593,385 $ 7,913,106
Net realized gain
(loss) on sale of
investments 13,220,474 13,218,840 23,855,929 24,960,119
Net change in
unrealized
appreciation
(depreciation) of
investments (8,153,521) 2,322,667 (10,029,585) 7,187,708
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 9,045,163 22,589,460 18,419,729 40,060,933
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM BENEFICIAL
INTEREST TRANSACTIONS (28,299,930) 12,753,903 (10,833,592) (168,062)
INCREASE (DECREASE) IN
NET ASSETS (19,254,767) 35,343,363 7,586,137 39,892,871
NET ASSETS:
Beginning net assets 243,561,062 208,217,699 366,163,633 326,270,762
ENDING NET ASSETS $224,306,295 $243,561,062 $373,749,770 $366,163,633
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
119
<PAGE>
LifePath Funds
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2030 MASTER PORTFOLIO
----------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999
<S> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
Net investment income $ 2,659,472 $ 4,472,364
Net realized gain
(loss) on sale of
investments 26,438,411 17,728,114
Net change in
unrealized
appreciation
(depreciation) of
investments (12,474,479) 10,724,507
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 16,623,404 32,924,985
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM BENEFICIAL
INTEREST TRANSACTIONS (35,940,329) 10,295,060
INCREASE (DECREASE) IN
NET ASSETS (19,316,925) 43,220,045
NET ASSETS:
Beginning net assets 276,830,418 233,610,373
ENDING NET ASSETS $257,513,493 $276,830,418
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
120
<PAGE>
LifePath Funds
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2040 MASTER PORTFOLIO
----------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999
<S> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
Net investment income $ 3,006,796 $ 5,019,405
Net realized gain
(loss) on sale of
investments 38,479,075 34,827,042
Net change in
unrealized
appreciation
(depreciation) of
investments (5,422,748) 23,947,962
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 36,063,123 63,794,409
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM BENEFICIAL
INTEREST TRANSACTIONS (57,104,500) 23,995,369
INCREASE (DECREASE) IN
NET ASSETS (21,041,377) 87,789,778
NET ASSETS:
Beginning net assets 492,518,885 404,729,107
ENDING NET ASSETS $471,477,508 $492,518,885
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
121
<PAGE>
LifePath Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
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 21, 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, Extended
Index, LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030, LifePath
2040, Money Market, S&P 500 Index, U.S. Equity Index and U.S. Treasury
Allocation Master Portfolios. These financial statements contain the LifePath
2000, LifePath 2010, LifePath 2020, LifePath 2030 and LifePath 2040 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.
INVESTMENT POLICY AND SECURITY VALUATION
Each Master Portfolio covered by this report follows an asset allocation
strategy among three broad investment classes: equity and debt securities of
issuers located throughout the world and cash in the form of money market
instruments. The equity securities of the Master Portfolios 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. U.S.
Government obligations are valued at the last reported bid price. Other 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. Debt securities
maturing in 60 days or less are valued at amortized cost, which approximates
market value. Any securities, restricted securities or other assets for which
market quotations are not readily available, are valued at fair value as
determined in good faith in accordance with policies approved by MIP's Board of
Trustees.
122
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) LifePath Funds
- ----------------------------------------------------------------------------
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Dividend income is recognized on the ex-dividend
date, and interest income is recognized on a daily accrual basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Bond discounts and premiums are amortized under provisions of the Internal
Revenue Code of 1986, as amended (the "Code").
FEDERAL INCOME TAXES
Each Master Portfolio intends to qualify as a partnership for federal income
tax purposes. Each Master Portfolio therefore believes that it will not be
subject to any federal income tax on its income and net realized capital gains
(if any). However, each investor in a Master Portfolio will be taxed on its
allocable share of the partnership's income and capital gains for the 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 LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030, and LifePath
2040 Master Portfolios may purchase futures contracts to gain exposure to market
changes, as this may be more efficient or cost effective than actually buying
the securities. A futures contract is an agreement between two parties to buy
and sell a security at a set price on a future date and is exchange traded. Upon
entering into a futures contract, the LifePath 2000, LifePath 2010, LifePath
2020, LifePath 2030, and LifePath 2040 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
123
<PAGE>
LifePath Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
debt instruments in connection with futures transactions in an amount generally
equal to the entire futures contract amount. Risks of entering into futures
contracts include the possibility that there may be an illiquid market and that
a change in the value of the contracts may not correlate with changes in the
value of the underlying securities. As of August 31, 1999 the Master Portfolios
had no open futures contracts outstanding.
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities at a specified price and time ("repurchase agreements") are treated
as collateralized financing transactions and are recorded at their contracted
resale amounts. These repurchase agreements, if any, are detailed in each Master
Portfolio's Portfolio of Investments. The adviser to the Master Portfolios may
pool each Master Portfolio's cash and invest in repurchase agreements entered
into by the other Master Portfolios. Each Master Portfolio's prospectus requires
that the cash investments be fully collateralized based on values that are
marked to market daily. The collateral is generally held by an agent bank under
a tri-party agreement. It is the 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 August 31, 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 0.55% of the average daily net assets of the
LifePath Master Portfolios as compensation for its advisory services to such
Master Portfolios. 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 SubAdministrator of each Master
Portfolio.
Stephens Inc. ("Stephens"), is the co-administrator, sponsor and placement
agent for the Master Portfolios.
Certain officers and directors of MIP are also officers of Stephens. As of
August 31, 1999 these officers of Stephens collectively owned less than 1% of
the Master Portfolios' outstanding beneficial interests.
124
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) LifePath Funds
- ----------------------------------------------------------------------------
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities, for
each Master Portfolio for the six months ended August 31, 1999 were as follows:
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH LIFEPATH LIFEPATH
AGGREGATE 2000 2010 2020 2030 2040
PURCHASES MASTER MASTER MASTER MASTER MASTER
AND SALES OF: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS:
Purchases at cost $34,255,606 $56,553,696 $75,360,951 $24,377,716 $29,067,855
Sales proceeds 32,325,251 50,614,583 54,271,293 19,379,856 19,862,906
- ------------------------------------------------------------------------------------------
OTHER SECURITIES:
Purchases at cost $ 897,460 $15,855,485 $31,975,454 $12,157,655 $29,215,184
Sales proceeds 5,069,634 29,910,324 52,325,482 55,399,216 91,565,848
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of August 31, 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>
LifePath 2000 Master Portfolio $ 2,033,801 $ 2,045,280
LifePath 2010 Master Portfolio $14,769,946 $14,853,557
LifePath 2020 Master Portfolio $27,613,330 $27,828,174
LifePath 2030 Master Portfolio $15,469,354 $15,525,104
LifePath 2040 Master Portfolio $42,404,595 $42,513,468
</TABLE>
125
<PAGE>
LifePath Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
5. FINANCIAL HIGHLIGHTS
The portfolio turnover rates, excluding short-term securities, for the Master
Portfolios are as follows:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS
ENDED FOR THE FOR THE FOR THE FOR THE FOR THE
AUGUST 31, YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
1999 FEBRUARY 28, FEBRUARY 28, FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
LIFEPATH 2000 MASTER
PORTFOLIO 32% 66% 39% 108% 84% 17%
LIFEPATH 2010 MASTER
PORTFOLIO 31% 38% 46% 73% 39% 24%
LIFEPATH 2020 MASTER
PORTFOLIO 29% 36% 41% 61% 49% 28%
LIFEPATH 2030 MASTER
PORTFOLIO 14% 19% 27% 42% 39% 40%
LIFEPATH 2040 MASTER
PORTFOLIO 12% 19% 34% 48% 29% 5%
</TABLE>
126
<PAGE>
Wells Fargo Bank, N.A. provides investment advisory services, shareholder
services, and/or certain other services for the Stagecoach Funds. Barclays
Global Fund Advisors ("BGFA") provides investment advisory and sub-advisory
services to certain Stagecoach Funds. Each of the Stagecoach LifePath Funds
invest in a master portfolio which in turn invests in individual securities.
LifePath is a registered trademark of Barclays Global Investors, N.A. The Funds
are distributed by STEPHENS INC., Member NYSE/SIPC. Wells Fargo Bank, N.A. and
BGFA are not affiliated with STEPHENS INC.
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Stagecoach Funds. If this report
is used for promotional purposes, distribution of the report must be accompanied
or proceeded by a current prospectus. For a prospectus containing more complete
information, including charges and expenses, call 1-800-222-8222. Read the
prospectus carefully before you invest or send money.
- -C- Stagecoach Funds
STAGECOACH FUNDS-Registered Trademark-
P.O. Box 7066
San Francisco, Ca 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
[RECYCLED LOGO] SAR003 (10/99)
