IOWA PUBLIC AGENCY INVESTMENT TRUST
INTERIM FINANCIAL REPORT
DECEMBER 31, 1996
SPONSORED BY THE
IOWA ASSOCIATION OF MUNICIPAL UTILITIES
IOWA STATE ASSOCIATION OF COUNTIES
IOWA LEAGUE OF CITIES
<PAGE>
TRUSTEES' REPORT
- ----------------
To Iowa Public Agency Investment Trust Participants:
The Iowa Public Agency Investment Trust (IPAIT) is pleased to present this
semi-annual report of Trust operations for the period ended December 31, 1996.
During 1996, market rates for short-term securities were relatively constant by
historical standards. IPAIT maintained a consistent focus upon its three
complementary, preoritized investment objectives; protecting invested
participant funds, maintaining the necessary degree of liquidity to meet
participant operating needs and providing participants with an excellent market
rate of return.
Included in this report is a summary of liquid rates for 1996 and each preceding
calendar year. Rates earned by IPAIT participants were reflective of the general
trend in interest rates throughout the year.
Participation in IPAIT's investment programs continues to grow and serve
additional participants. As of December 31, 1996, a total of 150 cities, 75
counties, 71 municipal utilities and 29 28E organizations were program
participants. During the period, total assets invested within the liquid funds
ranged from a low of $213,651,657 to a high of $305,211,891. When fixed term
securities are included, the respective figures range from a low of $256,237,358
to a high of $345,527,213. Total funds invested throughout 1996 for each
category exceeded total funds invested in all previous operating periods.
The Board of Trustees is very pleased with the success of the IPAIT cash
management program.
The Board also welcomes any comments and suggestions from participants that
might enable IPAIT to be more responsive to the cash management needs of its
members.
Respectfully,
K.D. Alberts, Chair
Board of Trustees
<PAGE>
MANAGEMENT DISCUSSION
During the first six-months of the fiscal year, the pace of economic growth was
moderate, inflation was mild, and the Federal Reserve kept short-term unchanged.
The rate on the IPAIT diversified fund was also stable during the time period.
Most measures of inflation remain quite good. Core consumer prices rose at an
annual rate of 2.6 percent in 1996, down from 3.0 percent in 1995. The GDP
deflator index, the broadest measure of U.S inflation, has risen only 1.4
percent over the last year.
Wage inflation, however, has begun to rise as the unemployment has dropped to
near 5 percent. Average hourly earnings have risen at a 3.8 percent annual rate
in 1996. The concern that wage inflation may eventually lead to higher consumer
prices may cause the Federal Reserve to raise short-term interest rates slightly
in the next six months. With this thought in mind the average maturity of the
portfolio was reduced to 44 days as of December 31, 1996.
The IPAIT program emphasizes three key elements: safety, liquidity, and
competitive rates in that order. The safety and security of participant moneys
is our first priority. The second priority is to assure daily liquidity. Only
after the first two elements are satisfied, do we examine the rates of different
investments. IPAIT continues to provide a competitive rate. Over the last
six-months, the yield of the diversified portfolio was 0.21 percent greater than
the Donoghue Index of national money market funds.
We appreciate your support of IPAIT over the fist six-months of the fiscal year
and look forward to serving you in 1997.
Sincerely,
Kathryn D. Beyer, CFA
Managing Director
Investors Management Group
<PAGE>
<TABLE>
<CAPTION>
IOWA PUBLIC AGENCY INVESTMENT TRUST
DIVERSIFIED PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1996
(SHOWING PERCENTAGE OF NET ASSETS)
- ----------------------------------
YIELD AT
PAR TIME OF AMORTIZED
VALUE DESCRIPTION PURCHASE DUE DATE COST
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DISCOUNTED GOVERNMENT SECURITIES -- 11.08%
$ 1,600,000 Federal Home Loan Mtge. Corp. Disc. Note 5.51% 01/14/96 $ 1,596,880
5,000,000 Federal Home Loan Mtge. Corp. Disc. Note 5.46% 01/24/97 4,982,654
5,000,000 Federal Home Loan Mtge. Corp. Disc. Note 5.55% 01/30/97 4,978,129
5,000,000 Federal National Mtge. Assoc., Disc. Note 5.38% 02/27/97 4,958,596
2,875,000 Federal National Mtge. Assoc., Disc. Note 5.36% 03/17/97 2,843,794
4,500,000 Federal National Mtge. Assoc., Disc. Note 5.41% 06/13/97 4,394,050
-------------
TOTAL (cost-- $23,754,103) $ 23,754,103
-------------
COUPON SECURITIES -- 53.14%
$ 3,000,000 Federal National Mtge. Assoc., 6.25% 5.51% 01/02/97 $ 3,000,057
750,000 Federal Home Loan Mortgage Corp., 7.73% 5.72% 01/06/97 750,199
650,000 Federal National Mtge. Assoc., 7.60% 5.52% 01/10/97 650,311
1,900,000 Federal National Mtge. Assoc., 6.24% 5.48% 01/10/97 1,900,319
1,000,000 Federal Home Loan Bank, 4.75% 5.55% 01/13/97 999,745
3,000,000 Tennessee Valley Authority, 6.00% 5.36% 01/15/97 3,000,599
500,000 Federal National Mtge. Assoc., 7.86% 5.51% 01/17/97 500,483
2,000,000 Federal National Mtge. Assoc., 7.86% 5.56% 01/17/97 2,001,923
2,500,000 U.S. Treasury Note, 7.50% 5.57% 01/31/97 2,503,782
500,000 Federal Farm Credit Bank, 4.55% 5.67% 02/03/97 499,510
2,000,000 Federal Farm Credit Bank, 4.97% 5.42% 02/03/97 1,999,062
886,000 Federal National Mtge. Assoc., 0.00% 5.64% 02/07/97 881.090
500,000 Federal Home Loan Mtge. Corp., 4.78% 5.82% 02/10/97 499,447
1,500,000 Federal National Mtge. Assoc., 4.78% 5.60% 02/14/97 1,498,567
2,500,000 U.S. Treasury Note, 6.875% 5.47% 02/28/97 2,505,355
2,500,000 U.S. Treasury Note, 6.875% 5.44% 02/28/97 2,505,476
2,500,000 U.S. Treasury Note, 6.875 5.47% 02/28/97 2,505,354
1,000,000 Federal National Mtge. Assoc., 4.97% 5.51% 02/10/97 999,023
2,500,000 Federal National Mtge. Assoc., 5.05% 5.55% 03/14/97 2,497,629
2,000,000 Federal National Mtge. Assoc., 5.05% 5.53% 03/14/97 1,998,179
1,000,000 Federal National Mtge. Assoc., 5.05% 5.59% 03/14/97 998,971
1,000,000 Federal National Mtge. Assoc., 5.05% 5.55% 03/14/97 999,054
1,000,000 Federal National Mtge. Assoc., 5.05% 5.52% 03/14/97 999,105
1,000,000 Fed. Farm Credit Bank, Variable Rate 5.83% 03/17/97 1,002,005
1,000,000 Federal Home Loan Bank, 5.65% 5.74% 03/24/97 999,776
7,500,000 Federal Home Loan Bank, Variable Rate 5.21% 03/27/97 7,499,345
600,000 Federal Home Loan Bank, 5.335% 5.42% 03/28/97 599,636
2,000,000 Federal Natl. Mtge. Assoc., Variable Rate 5.37% 03/28/97 1,999,557
2,000,000 Federal Home Loan Bank, Variable Rate 5.70% 04/10/97 2,001,547
1,200,000 Federal Natl. Mtge. Assoc., Variable Rate 5.34% 04/21/97 1,199,572
2,500,000 U.S. Treasury Note, 6.50% 5.64% 04/30/97 2,505,971
3,000,000 Federal Farm Credit Bank, 5.55% 5.54% 05/02/97 3,000,465
900,000 Federal Home Loan Bank, 6.23% 5.76% 05/15/97 901,482
5,000,000 Federal Natl. Mtge. Assoc., Variable Rate 5.38% 05/19/97 5,005,928
100,000 Federal National Mtge. Assoc., 5.71% 5.47% 05/20/97 100,087
1,000,000 Federal National Mtge. Assoc., 5.71% 5.87% 05/20/97 999,410
5,000,000 Federal Home Loan Bank, 5.865% 6.03% 06/10/97 4,994,810
2,500,000 Federal Farm Credit Bank, 5.84% 6.03% 06/18/97 2,497,963
750,000 Federal National Mtge. Assoc., 5.765% 5.50% 06/20/97 750,859
4,000,000 Federal Farm Credit Bank, 5.93% 5.51% 07/01/97 4,008,135
695,000 Federal Farm Credit Bank, 5.93% 5.52% 07/01/97 696,332
515,000 Federal National Mtge. Assoc., 8.80% 5.53% 07/25/97 524,143
7,500,000 Fed. Nat'l Mtge. Assoc. Variable Rate 5.28% 07/28/97 7,480,713
2,500,000 U.S. Treasury Note, 6.50% 6.05% 08/15/97 2,506,525
7,500,000 Fed. Farm Credit Bank, Variable Rate 5.34% 10/01/97 7,498,822
5,000,000 Fed. Farm Credit Bank, Variable Rate 5.51% 10/01/97 4,999,165
5,000,000 Federal Home Loan Bank, Variable Rate 5.34% 10/02/97 4,997,075
7,500,000 Fed. Nat'l Mtge. Assoc. Variable Rate 5.47% 12/03/97 7,495,295
1,000,000 Federal Home Loan Bank, Variable Rate 5.36% 12/15/97 999,694
--------------
TOTAL (cost-- $113,957,552) $ 113,957,552
--------------
CERTIFICATES OF DEPOSIT -- 9.19%
$ 1,000,000 Community First State Bank, Decorah 5.45% 01/07/97 $ 1,000,000
1,000,000 Community First State Bank, Decorah 5.45% 01/07/97 1,000,000
250,000 Citizens Bank, Sac City 5.55% 01/09/97 250,000
1,000,000 First State Bank, Conrad 5.35% 01/16/97 1,000,000
500,000 Peoples State Bank, Elkader 5.50% 01/21/97 500,000
1,000,000 Union State Bank, Monona 5.85% 01/24/97 1,000,000
500,000 Nevada National Bank, Nevada 5.50% 01/24/97 500,000
500,000 Farmers State Bank, Hawarden 5.55% 02/03/97 500,000
500,000 Heritage Bank, Holstein 5.75% 02/12/97 500,000
500,000 Peoples State Bank, Elkader 5.55% 02/18/97 500,000
250,000 Ft. Madison Bank & Trust, Ft. Madison 5.80% 02/18/97 250,000
5,000,000 Firstar Bank, Des Moines 5.25% 02/21/97 5,000,000
500,000 Union State Bank, Winterset 5.25% 02/27/97 500,000
200,000 Northwestern State Bank, Orange City 5.35% 02/28/97 200,000
1,500,000 Mercantile Bank of Eastern Iowa, Mt. Pleasant 5.90% 03/19/97 1,500,000
1,000,000 St. Ansgar State Bank, St. Ansgar 5.65% 03/25/97 1,000,000
250,000 Citizens Bank, Sac City 5.75% 04/09/97 250,000
400,000 Exchange Bank, Collins 5.78% 05/15/97 400,000
300,000 First State Bank, Ida Grove 5.65% 06/04/97 300,000
1,000,000 Peoples State Bank, Elma 5.75% 06/23/97 1,000,000
500,000 Citizens Bank, Sac City 6.00% 08/21/97 500,000
250,000 Ft. Madison Bank & Trust, Ft. Madison 6.05% 08/21/97 250,000
500,000 First State Bank, Nora Springs 6.10% 08/29/97 500,000
1,000,000 St. Ansgar State Bank, St. Ansgar 6.20% 09/19/97 1,000,000
300,000 Miles Savings Bank, Miles 6.00% 19/17/97 300,000
--------------
TOTAL (cost-- $19,700,000) $ 19,700,000
--------------
REPURCHASE AGREEMENTS (collateralized by U.S. Govt. Securities) -- 25.97%
$27,849,000 J. P. Morgan, Repurchase Agreement 6.25% 01/02/97 $ 27,849,000
27,849,000 Smith Barney, Repurchase Agreement 6.35% 01/02/97 27,849,000
--------------
TOTAL (cost-- $55,698,000) $ 55,698,000
--------------
TOTAL INVESTMENTS-- 99.38% (cost-- $213,109,655) $ 213,109,655
EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES -- 0.62%
(Includes $55,798 payable to IMG and $857,818
dividends payable to unitholders) $ 1,334,378
--------------
NET ASSETS -- 100%
Applicable to 214,444,033 outstanding units $ 214,444,033
==============
NET ASSET VALUE: $ 1.00 Offering
and redemption price per unit ($214,444,033 ==============
divided by 214,444,033 units outstanding)
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
IOWA PUBLIC AGENCY INVESTMENT TRUST
DIRECT GOVERNMENT OBLIGATION PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1996
(SHOWING PERCENTAGE OF NET ASSETS)
YIELD AT
PAR TIME OF AMORTIZED
VALUE DESCRIPTION PURCHASE DUE DATE COST
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COUPON SECURITIES -- 30.97%
$1,000,000 U.S. Treasury-Note, 6.75% 5.42% 02/28/97 $ 1,002,024
1,000,000 U.S. Treasury-Note, 6.75% 5.42% 02/28/97 1,002,027
1,500,000 U.S. Treasury-Note, 6.875% 5.74% 02/28/97 1,502,588
1,000,000 U.S. Treasury-Note, 6.625% 5.71% 03/31/97 1,002,127
1,500,000 U.S. Treasury-Note, 6.625% 5.59% 03/31/97 1,503,612
1,000,000 U.S. Treasury-Note, 6.625% 5.72% 03/31/97 1,002,109
2,000,000 U.S. Treasury-Note, 6.50% 5.87% 04/30/97 2,003,881
1,000,000 U.S. Treasury-Note, 6.50% 5.74% 04/30/97 1,002,389
2,000,000 U.S. Treasury-Note, 6.875% 5.94% 04/30/97 2,005,799
1,500,000 U.S. Treasury-Note, 6.375% 5.29% 06/30/97 1,507,771
1,000,000 U.S. Treasury-Note, 8.50% 5.38% 07/15/97 1,016,199
1,000,000 U.S. Treasury-Note, 5.875% 5.37% 07/31/97 1,002,783
1,500,000 U.S. Treasury-Note, 6.50% 6.03% 08/15/97 1,504,092
-------------
TOTAL (cost-- $17,057,401) $ 17,057,401
-------------
REPURCHASE AGREEMENTS (collateralized by U.S. Govt. Securities) -- 68.94%
$21,290,000 Smith Barney, Repurchase Agreement 6.30% 01/02/96 $ 37,983,000
-------------
TOTAL (cost-- $37,983,000) $ 37,983,000
-------------
TOTAL INVESTMENTS-- 99.91% (cost-- $55,040,401) $ 55,040,401
EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES-- 0.09% $ 51,528
(Includes $15,375 payable to IMG and $228,352 -------------
dividends payable to unitholders)
NET ASSETS-- 100% $ 55,091,929
Applicable to 55,091,929 outstanding units =============
NET ASSET VALUE: $ 1.00
Offering and redemption price per unit ($55,091,929 =============
divided by 55,091,929 units outstanding)
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
- ------------------------------------------
DIRECT GOVERNMENT
DIVERSIFIED PORTFOLIO OBLIGATION PORTFOLIO
INVESTMENT INCOME:
Interest $ 5,586,011 $ 1,622,462
-------------- ------------
EXPENSES:
Investment advisory, administrative,
and program support fees 325,323 98,998
Custody and bank trust services fees 127,142 37,664
Distribution fees 102,801 30,131
Other fees and expenses 25,700 7,533
-------------- ------------
Total Expenses 580,966 174,326
-------------- ------------
NET INVESTMENT INCOME $ 5,005,045 $ 1,448,136
============== ============
See Accompanying Notes to Financial Statements.
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996 AND 1995
- ---------------------------------------------------
<TABLE>
<CAPTION>
DIRECT GOVERNMENT
DIVERSIFIED PORTFOLIO OBLIGATION PORTFOLIO
1996 1995 1996 1995
------------------------------------ ---------------------------------
<S> <C> <C> <C> <C>
From Investment Activities:
Net investment income
distributed to unitholders $ 5,005,045 $ 4,791,066 $ 1,448,136 $ 1,339,453
================ ================ ============== ===============
From Unit Transactions:
(at constant net asset
value of $1per unit)
Units sold $ 346,011,628 $ 369,066,441 $ 3,084,641 $ 1,692,604
Units issued in reinvest-
ment of dividends from
net investment income 5,005,045 4,791,066 1,448,136 1,339,453
Units redeemed (329,024,222) (370,979,693) (14,758,733) (13,731,532)
---------------- ---------------- -------------- ---------------
Net increase/(decrease)
in net assets derived
from unit transactions 21,992,451 2,877,814 (10,225,956) (10,699,475)
Net assets at
beginning of period 192,451,582 184,369,434 65,317,885 56,078,373
---------------- ----------------- -------------- ---------------
Net assets
at end of period $ 214,444,033 $ 187,247,248 $ 55,091,929 $ 45,378,898
================ ================= ============== ===============
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SELECTED DATA FOR A UNIT OF EACH PORTFOLIO
OUTSTANDING THROUGH EACH SIX MONTH PERIOD
- -----------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
IOWA PUBLIC AGENCY INVESTMENT TRUST
DIVERSIFIED PORTFOLIO
Net Asset Value,
Beginning
of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net Investment
Income .049 .053 .043 .027 .033 .052 .073 .080
Dividends
Distributed (.049) (.053) (.043) (.027) (.033) (.052) (.073) (.080)
---------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
=============================================================================================
Total Return 4.87% 5.30% 4.33% 2.66% 3.29% 5.24% 7.30% 7.96%
Ratio of Expenses
to Average
Net Assets 0.57% 0.57% 0.58% 0.57% 0.58% 0.66% 0.67% 0.67%
Ratio of Net
Income to
Average
Net Assets 4.87% 5.30% 4.33% 2.66% 3.29% 5.24% 7.30% 7.96%
Net Assets,
End of Period
(000 Omitted) $ 214,444 $ 187,247 $163,845 $181,420 $ 183,291 $ 191,626 $177,410 $136,074
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SELECTED DATA FOR A UNIT OF EACH PORTFOLIO
OUTSTANDING THROUGH EACH SIX MONTH PERIOD
- -----------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
IOWA PUBLIC AGENCY INVESTMENT TRUST
DIRECT GOVERNMENT OBLIGATION PORTFOLIO
Net Asset Value,
Beginning
of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net Investment
Income .048 .052 .043 .026 .030 .049 .073 .080
Dividends
Distributed (.048) (.052) (.043) (.026) (.030) (.049) (.073) (.080)
-----------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
=========================================================================================
Total Return 4.81% 5.21% 4.25% 2.58% 3.00% 4.85% 7.35% 7.98%
Ratio of Expenses
to Average
Net Assets 0.58% 0.58% 0.58% 0.58% 0.58% 0.67% 0.65% 0.65%
Ratio of Net
Income to
Average
Net Assets 4.81% 5.21% 4.25% 2.58% 3.00% 4.85% 7.35% 7.98%
Net Assets,
End of Period
(000 Omitted) $55,091 $45,379 $28,013 $44,601 $12,861 $18,193 $11,109 $20,726
</TABLE>
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Iowa Public Agency Investment Trust (IPAIT) is a common law trust
established under Iowa law pursuant to Chapter 28E and Sections 331.555 and
384.21, Iowa Code (1987), as amended, which authorized Iowa public agencies
to jointly invest moneys pursuant to a joint investment agreement. IPAIT is
registered under the Investment Company Act of 1940. IPAIT was established
by the adoption of a Joint Powers Agreement and Declaration of Trust as of
October 1, 1987, and commenced operations on November 13, 1987. The Joint
Powers Agreement and Declaration of Trust was amended September 1, 1988,
and again on May 1, 1993. As amended, IPAIT is authorized to operate and
now operates three investment programs: 1) the Diversified Portfolio, 2)
the Direct Government Obligation Portfolio, and 3) the Fixed Term Automated
(FTA) Investment Program. The objective of the portfolios is to maintain a
high degree of liquidity and safety of principal through investment in
short-term securities as permitted for Iowa public agencies under Iowa law.
The objective of the FTA Investment Program is to provide individual public
agency ownership of investments in legally permissible individual
securities which offer fixed rates of return and fixed maturities. Norwest
Bank Iowa, N.A., serves as the Custodian and Bank Trust Services Provider,
and Investors Management Group serves as the Investment Advisor and
Administrator.
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 increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
INVESTMENTS IN SECURITIES
The Diversified and Direct Government Obligation Portfolios consist of cash
and short-term investments valued at amortized cost pursuant to Rule 2a-7
under the Investment Company Act of 1940. This involves valuing a portfolio
security at its original cost on the date of purchase, and thereafter
amortizing any premium or discount on a straight-line basis to maturity.
The amount of premium or discount amortized to income under the
straight-line method does not differ materially from the amount which would
be amortized to income under the interest method. Procedures are followed
to maintain a constant net asset value of $1.00 per unit for each
portfolio.
Security transactions are accounted for on the trade date. Interest income,
including the accretion of discount and amortization of premium, is
recorded on the accrual basis.
Under Governmental Accounting Standards as to custodial credit risk,
IPAIT's investments in securities are classified as category one. Category
one is the most secure investment category description.
Certificates of deposit amounts in excess of the $100,000 federal deposit
insurance are collateralized as required by Iowa law, including the
security provided by the State of Iowa's sinking fund for public deposits.
In connection with transactions in repurchase agreements, it is IPAIT's
policy that its Custodian take possession of the underlying collateral
securities, the value of which exceeds the principal amount of the
repurchase transaction, including accrued interest at all times. If the
seller defaults, and the value of the collateral declines, realization of
the collateral by IPAIT may be delayed or limited. At December 31, 1996,
the securities purchased under overnight agreements to resell were
collateralized by government agency securities with market values of
$56,950,000 and $38,741,118 for the Diversified Portfolio and the Direct
Government Obligation Portfolio, respectively.
UNIT ISSUES, REDEMPTIONS AND DISTRIBUTIONS
IPAIT determines the net asset value of each portfolio daily. Units are
issued and redeemed daily at the daily net asset value. Net investment
income for each portfolio is declared daily and distributed monthly.
INCOME TAXES
IPAIT is exempt from federal and state income tax.
FEES AND EXPENSES
Under separate agreements with IPAIT, Investors Management Group (IMG), the
Investment Advisor, Administrator and Program Support Provider, and Norwest
Bank, Iowa, N.A. (Norwest), the Custodian and Bank Trust Services Provider,
are paid an annual fee for operating the investment programs. For each of
the portfolios, IMG receives .230 percent of the average daily net asset
value up to $150 million, .185 percent from $150 to $300 million, and .140
percent exceeding $300 million for investment advisor and administrative
fees. In addition, IMG receives .10 percent of the average daily net asset
value up to $250 million for program support fees. For the period ended
December 31, 1996 the Diversified Portfolio and the Direct Government
Obligation Portfolio paid $352,323 and $98,998, respectively to IMG for
services provided. For each of the portfolios, Norwest receives .050
percent of $150 million, .045 percent from $150 to $300 million, and .040
percent exceeding $300 million for custodial services. Norwest also
receives .075 percent of the average daily net asset value for bank trust
services. For the period ended December 31, 1996, the Diversified Portfolio
and the Direct Government Obligation Portfolio paid $127,142 and $37,664,
respectively to Norwest for services provided. Under a distribution plan
the public agency associations collectively receive an annual fee of .10
percent of the daily net asset value of the portfolios. For the period
ended December 31, 1996, the Diversified Portfolio and the Direct
Government Obligation Portfolio paid $56,572 and $26,708 respectively to
the Iowa League of Cities, $34,153 and $3,423, respectively to the Iowa
Association of Municipal Utilities. For the perdiod ended December 31,
1996, the Diversified Portfolio paid $34,153 to the Iowa State Association
of Counties. IPAIT is responsible for other expenses incurred directly by
IPAIT. All fees are computed daily and paid monthly.
(2) SECURITIES TRANSACTIONS
Purchases of portfolio securities for the Diversified Portfolio and Direct
Government Obligation Portfolio aggregated $9,759,589,783 and
$5,092,924,015 respectively for the period ended December 31, 1996.
Proceeds from maturities of securities for the Diversified Portfolio and
Direct Government Obligation Portfolio aggregated $9,737,395,859 and
$5,105,896,000 respectively for the period ended December 31, 1996.
<PAGE>
BOARD OF TRUSTEES
- -----------------
KEN ALBERTS, General Manager
Cedar Falls Utilities, CHAIR JODY E. SMITH, Director of
ROBERT HAGEY, Treasurer Administrative Services
Sioux County, VICE CHAIR West Des Moines, TRUSTEE
TOM HANAFAN, Mayor BOB HAUG, Executive Director
Council Bluffs, Iowa Association of
SECOND VICE CHAIR Municipal Utilities, EX-OFFICIO
ROBERT RASMUSSEN, Mayor MEMBER AND SECRETARY
Fairfield, TRUSTEE THOMAS BREDEWEG,
JIM AHRENHOLTZ, Office Manager Executive Director
Denison Municipal Utility, Iowa League of Cities,
TRUSTEE EX-OFFICIO MEMBER AND
FLOYD MAGNUSSON, Supervisor TREASURER
Webster County, TRUSTEE WILLIAM PETERSON,
NORMAN KEHRBERG, Treasurer Executive Director
Plymouth County, TRUSTEE Iowa State Association
PAUL OLDHAM, Office Manager of Counties, EX-OFFICIO
Algona Municipal Utilities, MEMBER AND ASSISTANT SECRETARY
TRUSTEE
SERVICE PROVIDERS
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ADMINISTRATOR-INVESTMENT LEGAL COUNSEL:
ADVISOR: Ahlers, Cooney, Dorweiler,
Investors Management Group Haynie, Smith & Allbee, P.C.
2203 Grand Avenue 100 Court Avenue
Des Moines, IA 50312-5338 Des Moines, IA 50309
CUSTODIAN AND BANK TRUST INDEPENDENT AUDITORS:
SERVICES PROVIDER: KPMG Peat Marwick LLP
Norwest Bank Iowa, N.A. 2500 Ruan Center
666 Walnut, P.O. Box 837 Des Moines, IA 50309
Des Moines, IA 50304
IOWA PUBLIC AGENCY INVESTMENT TRUST
666 Walnut, P.O. Box 837
Des Moines, IA 50304
(800) 872-4024 or (515) 245-3245
