IOWA PUBLIC AGENCY INVESTMENT TRUST
INTERIM FINANCIAL REPORT
DECEMBER 31, 1998
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, 1998.
During 1998, market rates for short-term securities were relatively constant for
the first half of the year. Market rates declined in the second half of the year
as the Federal Reserve Board cut overnight rates on three separate occasions,
for a total of 0.75 percent. IPAIT maintained a consistent focus upon its three
complementary investment objectives; protection of invested participant funds,
maintaining the necessary degree of liquidity to accommodate participant needs
and providing participants with an excellent market rate of return.
Participation in IPAIT's investment programs continues to grow and serve
additional participants. As of December 31, 1998, a total of 161 cities, 84
counties, 73 municipal utilities and 33 28E organizations were authorized to
invest in IPAIT. During the semi-annual period, total assets invested within the
liquid funds ranged from a low of $227,812,297 to a high of $308,002,416. When
fixed term securities are included, the respective figures range from a low of
$365,834,458 to a high of $493,566,694. Average total funds invested in 1998 for
all investment alternatives exceeded average total funds for much of the year,
reaching an all-time high of $493,566,694 on October 21, 1998.
The Board of Trustees is very pleased with the success of the IPAIT cash
management program and would welcome any comments or suggestions that you might
have. Our goal is to provide a cash management program that is always responsive
to its member's needs.
Respectfully,
Robert Hagey, Chair
Board of Trustees
<PAGE>
MANAGEMENT DISCUSSION
During the first half of fiscal year 1998-99, short-term interest rates
declined. The Federal Reserve lowered the Federal Funds rate three times to
stabilize financial markets. Investors had become extremely risk averse as
financial turmoil that began in Southeast Asia spread to Russia and Latin
America.
The domestic economic growth continues to be strong, led by consumer and
construction spending. The global economic environment has begun to stabilize,
but remains questionable in certain regions. This combination of factors will
likely cause the Federal Reserve to leave interest rates unchanged for the next
several months.
The rate on the IPAIT Diversified Fund declined from 5.12 percent to 4.53
percent during the period. The Fund, however, consistently provided a rate more
than 0.20 percent above the IBC Index of national money market funds.
The average maturity of the Fund was extended to 76 days during the period,
primarily by investing a portion of the portfolio in six to twelve month
Certificates of Deposit offered by Iowa financial institutions at rates above
5.00 percent.
The IPAIT program continues to emphasize three elements: safety, liquidity, and
competitive rates, in that order. We look forward to continuing to service your
cash management needs.
Sincerely,
Kathryn D. Beyer, CFA
Managing Director
Investors Management Group
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
DIVERSIFIED PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield at
Par Time of Amortized
Value Description Purchase Due Date Cost
----- ----------- -------- -------- ----
<S> <C> <C> <C> <C>
DISCOUNTED GOVERNMENT SECURITIES -- 27.25%
$4,000,000 Fed. Home Loan Mtge Corp.-Disc. Note 5.01% 01/28/99 $3,985,360
7,500,000 Fed. Home Loan Mtge Corp.-Disc. Note 4.96% 02/01/99 7,468,806
7,500,000 Fed. Home Loan Bank-Disc. Note 4.96% 02/16/99 7,453,808
7,500,000 Fed. Home Loan Mtge Corp.-Disc. Note 5.07% 02/25/99 7,443,625
8,584,000 Federal National Mtge. Assoc.-Disc. Note 5.05% 03/15/99 8,498,534
5,000,000 Fed. Home Loan Bank-Disc. Note 4.87% 04/30/99 4,922,485
5,000,000 Federal National Mtge. Assoc.-Disc. Note 5.04% 05/06/99 4,915,625
3,000,000 Federal National Mtge. Assoc.-Disc. Note 4.89% 06/11/99 2,936,942
5,000,000 Federal National Mtge. Assoc.-Disc. Note 4.92% 06/18/99 4,889,634
------------
TOTAL (cost -- $52,514,819) $52,514,819
------------
COUPON SECURITIES -- 28.19%
$2,000,000 Federal National Mtge. Assoc., 5.12% 5.28% 01/22/99 $1,999,720
1,000,000 Student Loan Marketing Assoc., 7.723% 5.76% 01/25/99 1,001,244
5,000,000 Student Loan Marketing Assoc., Variable Rate 5.57% 02/08/99 4,999,092
5,000,000 Student Loan Marketing Assoc., Variable Rate 5.28% 02/18/99 4,997,057
5,000,000 Student Loan Marketing Assoc., Variable Rate 5.62% 02/22/99 4,998,753
1,750,000 Federal National Mtge. Assoc., 6.61% 5.10% 03/24/99 1,755,676
2,400,000 Federal Home Loan Bank, 5.65% 5.06% 04/09/99 2,403,702
7,500,000 Student Loan Marketing Assoc., Variable Rate 5.58% 04/16/99 7,498,943
5,000,000 Student Loan Marketing Assoc., Variable Rate 5.06% 04/16/99 4,997,867
5,000,000 Federal National Mtge. Assoc., 6.19% 4.96% 06/07/99 5,025,669
5,000,000 Federal National Mtge. Assoc., 6.45% 5.07% 07/01/99 5,033,103
1,000,000 Federal National Mtge. Assoc., 6.07% 5.04% 07/01/99 1,004,935
2,500,000 Fed. Home Loan Mtge Corp., 5.544% 4.88% 08/13/99 2,509,745
1,100,000 Federal National Mtge. Assoc., 5.73% 4.91% 10/14/99 1,106,799
5,000,000 Federal Home Loan Bank, 5.025% 5.03% 11/05/99 5,000,000
------------
TOTAL (cost -- $54,332,305) $54,332,305
------------
CERTIFICATES OF DEPOSIT -- 21.64%
$500,000 Maquoketa State Bank, Maquoketa 5.30% 01/11/99 $500,000
250,000 Farmers State Bank, Hawarden 5.30% 01/12/99 250,000
500,000 Farmers State Bank, Hawarden 5.25% 01/15/99 500,000
150,000 Community Bank, Preston 5.80% 01/19/99 150,000
500,000 Mid-Iowa Savings Bank, Newton 5.10% 01/19/99 500,000
500,000 American Bank, LeMars 5.80% 01/20/99 500,000
500,000 American Bank, Sioux Center 5.80% 01/20/99 500,000
250,000 Cherokee State Bank, Cherokee 4.90% 01/20/99 250,000
400,000 DeWitt Bank & Trust, DeWitt 5.80% 01/25/99 400,000
5,000,000 NationsBank, Des Moines 4.90% 01/26/99 5,000,000
1,000,000 Ottumwa Savings Bank, Ottumwa 4.88% 02/04/99 1,000,000
400,000 DeWitt Bank & Trust, DeWitt 5.80% 02/08/99 400,000
500,000 Citizens Bank, Sac City 5.80% 02/17/99 500,000
250,000 Ft. Madison Bank & Trust, Ft. Madison 5.87% 02/18/99 250,000
500,000 Northwestern State Bank, Orange City 5.80% 02/22/99 500,000
500,000 First State Bank, Nora Springs 5.80% 02/24/99 500,000
500,000 Union State Bank, Winterset 6.00% 02/26/99 500,000
2,000,000 DeWitt Bank & Trust, DeWitt 5.25% 02/26/99 2,000,000
500,000 First Bank & Trust, Rock Rapids 5.90% 03/04/99 500,000
250,000 Ackley State Bank, Ackley 6.00% 03/09/99 250,000
5,000,000 Magna Bank, Waterloo 6.05% 03/19/99 5,000,000
1,000,000 St. Ansgar State Bank, St. Ansgar 5.30% 04/12/99 1,000,000
1,000,000 American Bank, LeMars 6.00% 04/14/99 1,000,000
400,000 Exchange Bank, Collins 6.00% 04/15/99 400,000
300,000 Community Bank, Miles 5.10% 04/16/99 300,000
150,000 Community Bank, Preston 5.10% 04/16/99 150,000
500,000 Tama State Bank, Tama 4.90% 04/20/99 500,000
250,000 United Bank of Iowa, Ida Grove 5.00% 04/21/99 250,000
200,000 Security Savings Bank, Gowrie 4.90% 04/21/99 200,000
200,000 Maxwell State Bank, Maxwell 6.00% 04/22/99 200,000
1,000,000 Community First State Bank, Decorah 5.00% 04/26/99 1,000,000
500,000 American Bank, LeMars 6.00% 04/30/99 500,000
5,000,000 Magna Bank, Waterloo 5.99% 06/16/99 5,000,000
1,000,000 Peoples State Bank, Elma 5.13% 06/21/99 1,000,000
250,000 Citizens Bank, Sac City 5.13% 06/21/99 250,000
250,000 Citizens Bank, Sac City 6.00% 07/06/99 250,000
2,500,000 First National Bank, Ames 4.90% 07/19/99 2,500,000
250,000 Ft. Madison Bank & Trust, Ft. Madison 6.00% 08/23/99 250,000
300,000 State Savings Bank, Baxter 6.00% 09/10/99 300,000
500,000 First American State Bank, Ames 5.80% 09/20/99 500,000
400,000 Exchange Bank, Collins 5.40% 10/13/99 400,000
2,000,000 First State Bank, Conrad 5.30% 10/14/99 2,000,000
1,000,000 DeWitt Bank & Trust, DeWitt 5.29% 10/22/99 1,000,000
250,000 Hardin County Savings Bank, Eldora 5.00% 10/22/99 250,000
1,000,000 Union State Bank, Winterset 5.40% 10/22/99 1,000,000
250,000 State Savings Bank, Baxter 5.35% 10/25/99 250,000
300,000 First State Bank, Ida Grove 5.13% 11/30/99 300,000
1,000,000 St. Ansgar State Bank, St. Ansgar 5.13% 12/10/99 1,000,000
------------
TOTAL (cost -- $41,700,000) $41,700,000
------------
REPURCHASE AGREEMENTS (collateralized by U.S. Govt. Securities) -- 22.53%
$21,712,000 Merrill Lynch, Repurchase Agreement 5.00% 01/04/99 $21,712,000
21,712,000 Warburg, Repurchase Agreement 4.70% 01/04/99 21,712,000
------------
TOTAL (cost -- $43,424,000) $43,424,000
------------
TOTAL INVESTMENTS -- 99.61% (cost -- $191,971,124) $191,971,124
EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES -- .39%
(Includes $53,306 payable to IMG and $750,235
dividends payable to unitholders) $740,897
------------
NET ASSETS -- 100%
Applicable to 192,712,021 outstanding units $192,712,021
============
NET ASSET VALUE: $1.00
Offering and redemption price per unit ($192,712,021 ============
divided by 192,712,021 units outstanding)
</TABLE>
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
DIRECT GOVERNMENT OBLIGATION PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield at
Par Time of Amortized
Value Description Purchase Due Date Cost
----- ----------- -------- -------- ----
<S> <C> <C> <C> <C>
COUPON SECURITIES -- 6.22%
$2,000,000 U.S. Treasury Notes, 5.875% 5.55% 02/28/99 $2,000,971
2,500,000 U.S. Treasury Notes, 6.375% 4.72% 07/15/99 2,521,423
------------
TOTAL (cost -- $4,522,394) $4,522,394
------------
REPURCHASE AGREEMENTS (collateralized by U.S. Govt. Securities) -- 94.04%
$68,396,000 Warburg, Repurchase Agreement 4.70% 01/04/99 $68,396,000
------------
TOTAL (cost -- $68,396,000) $68,396,000
------------
TOTAL INVESTMENTS -- 100.26% (cost -- $72,918,394) $72,918,394
EXCESS OF TOTAL LIABILITIES OVER OTHER ASSETS -- (.26%)
(Includes $21,237 payable to IMG and $273,866
dividends payable to unitholders) ($188,042)
------------
NET ASSETS -- 100%
Applicable to 72,730,352 outstanding units $72,730,352
============
NET ASSET VALUE: $1.00
Offering and redemption price per unit ($72,730,352 ============
divided by 72,730,352 units outstanding)
</TABLE>
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
STATEMENT OF OPERATIONS
FOR THE PERIOD JULY 1, 1998 TO DECEMBER 31, 1998
- --------------------------------------------------------------------------------
DIVERSIFIED DIRECT GOVERNMENT
PORTFOLIO OBLIGATION PORTFOLIO
------------ ---------------------
INVESTMENT INCOME:
Interest $4,983,267 $2,100,950
============ =====================
EXPENSES:
Investment advisory, administrative,
and program support fees 299,475 131,692
Custody and bank trust services fees 115,552 49,884
Distribution fees 93,143 39,906
Other fees and expenses 23,286 9,976
------------ ---------------------
Total Expenses 531,456 231,458
------------ ---------------------
NET INVESTMENT INCOME $4,451,811 $1,869,492
============ =====================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD JULY 1, 1998 TO DECEMBER 31, 1998
- --------------------------------------------------------------------------------
DIVERSIFIED DIRECT GOVERNMENT
PORTFOLIO OBLIGATION PORTFOLIO
------------ ---------------------
From Investment Activities:
Net investment income
distributed to unitholders $4,451,811 $1,869,492
============ =====================
From Unit Transactions:
(at constant net asset value of $1
per unit)
Units sold $487,942,848 $5,998,606
Units issued in reinvestment
of dividends from net
investment income 4,451,811 1,869,492
Units redeemed (476,701,352) (18,002,779)
------------ ---------------------
Net increase (decrease) in net assets
derived from unit transactions 15,693,307 (10,134,681)
Net assets at beginning of period 177,018,714 82,865,033
------------ ---------------------
Net assets at end of period $192,712,021 $72,730,352
============ =====================
<PAGE>
SELECTED DATA FOR A UNIT PORTFOLIO
OUTSTANDING THROUGH EACH PERIOD*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <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 $ 1.000 $ 1.000
Net Investment Income .048 .051 .049 .053 .043 .027 .033 .052 .073 .080
Dividends Distributed (.048) (.051) (.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 $ 1.000 $ 1.000
============================================================================================================
Total Return 4.81% 5.11% 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% 0.57% 0.57% 0.58% 0.57% 0.58% 0.66% 0.67% 0.67%
Ratio of Net Income to
Average Net Assets 4.81% 5.11% 4.87% 5.30% 4.33% 2.66% 3.29% 5.24% 7.30% 7.96%
Net Assets,
End of Period
(000 Omitted) $192,712 $161,914 $214,444 $187,247 $163,845 $181,420 $183,291 $191,626 $177,410 $136,074
</TABLE>
*For the six month period ending December 31, annualized.
See Notes to Financial Statements.
<PAGE>
SELECTED DATA FOR A UNIT PORTFOLIO
OUTSTANDING THROUGH EACH PERIOD*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <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 $ 1.000 $ 1.000
Net Investment Income .047 .050 .048 .052 .043 .026 .030 .049 .073 .080
Dividends Distributed (.047) (.050) (.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 $ 1.000 $ 1.000
============================================================================================================
Total Return 4.68% 5.01% 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% 0.58% 0.58% 0.67% 0.65% 0.65%
Ratio of Net Income to
Average Net Assets 4.68% 5.01% 4.81% 5.21% 4.25% 2.58% 3.00% 4.85% 7.35% 7.98%
Net Assets,
End of Period
(000 Omitted) $ 72,730 $ 52,182 $ 55,091 $ 45,379 $ 28,013 $ 44,601 $ 12,861 $ 18,193 $ 11,109 $ 20,726
</TABLE>
*For the six month period ending December 31, annualized.
See Notes to Financial Statements.
<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 authorizes 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 that 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.
In reporting financial activity, IPAIT applies applicable Governmental
Accounting Standards Board (GASB) pronouncements, as well as all Financial
Accounting Standards Board and predecessor statements and interpretations
not in conflict with GASB pronouncements.
IPAIT is exposed to various risks in connection with operation of the
Diversified and Direct Government Obligations Portfolios and adheres to
policies that mitigate market risk in the portfolios and maintains
insurance coverage for fidelity and errors and omissions exposures. IPAIT
has had no claims or settlements under its insurance coverage since its
organization in 1987.
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 that 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.
IPAIT is authorized by investment policy and statute to invest public funds
in obligations of the U.S. government, its agencies and instrumentalities;
certificates of deposit and other evidences of deposit at federally insured
Iowa depository institutions approved and secured pursuant to Chapter 12 of
the Code of Iowa; and repurchase agreements, provided that the underlying
collateral consists of obligations of the U.S. government, its agencies and
instrumentalities and that IPAIT's custodian takes delivery of the
collateral directly or through an authorized custodian.
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.
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS, CONTINUED
Under Governmental Accounting Standards as to custodial credit risk,
IPAIT's investments in securities are classified as category one. Category
one consists of insured or registered securities or securities held by
IPAIT or its agent in IPAIT's name and is the most secure investment
category description.
Certificates of deposit amounts in excess of the $100,000 federal deposit
insurance are collateralized with securities or letters of credit held by
IPAIT's custodian in IPAIT's name, or by the Iowa multiple financial
institution collateral pool in accordance with Chapter 12C of the Code of
Iowa, which provides for additional assessments against depositories to
ensure there will be no loss of public funds.
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, 1998,
the securities purchased under overnight agreements to resell were
collateralized by government agency securities with market values of
$44,302,653 and $69,765,300 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. Dividends from net
investment income for each portfolio are 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 0.230 percent of the average daily net asset
value up to $150 million, 0.185 percent from $150 to $300 million, and
0.140 percent exceeding $300 million for investment advisor and
administrative fees. In addition, IMG receives 0.10 percent of the average
daily net asset value up to $250 million for program support fees. For the
period ended December 31, 1998 the Diversified Portfolio and the Direct
Government Obligation Portfolio paid $299,475 and $131,692, respectively to
IMG for services provided. For each of the portfolios, Norwest receives
0.050 percent of $150 million, 0.045 percent from $150 to $300 million, and
0.040 percent exceeding $300 million for custodial services. Norwest also
receives 0.075 percent of the average daily net asset value for bank trust
services. For the period ended December 31, 1998, the Diversified Portfolio
and the Direct Government Obligation Portfolio paid $115,552 and $49,884,
respectively to Norwest for services provided. Under a distribution plan
the public agency associations collectively receive an annual fee of 0.10
percent of the daily net asset value of the portfolios. For the period
ended December 31, 1998, the Diversified Portfolio and the Direct
Government Obligation Portfolio paid $49,263 and $36,880 respectively to
the Iowa League of Cities, $12,512 and $3,026, respectively to the Iowa
Association of Municipal Utilities. For the period ended December 31, 1998,
the Diversified Portfolio paid $31,368 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 $6,794,259,770 and
$9,456,774,367 respectively for the period ended December 31, 1998.
Proceeds from maturities of securities for the Diversified Portfolio and
Direct Government Obligation Portfolio aggregated $6,778,593,576 and
$9,467,010,000 respectively for the period ended December 31, 1998.
<PAGE>
BOARD OF TRUSTEES
ROBERT HAGEY, Treasurer JODY E. SMITH, Director of
Sioux County, CHAIR Administrative Services
TOM HANAFAN, Mayor West Des Moines, TRUSTEE
Council Bluffs, BOB HAUG, Executive Director
VICE CHAIR Iowa Association of
KEN ALBERTS, General Manager Municipal Utilities, EX-OFFICIO
Cedar Falls Utilities, MEMBER AND SECRETARY
SECOND VICE CHAIR THOMAS BREDEWEG,
ROBERT RASMUSSEN, Mayor Executive Director
Fairfield, TRUSTEE Iowa League of Cities,
JIM AHRENHOLTZ, Office Manager EX-OFFICIO MEMBER AND
Denison Municipal Utility, TREASURER
TRUSTEE WILLIAM PETERSON,
FLOYD MAGNUSSON, Supervisor Executive Director
Webster County, TRUSTEE Iowa State Association
NORMAN KEHRBERG, Treasurer of Counties, EX-OFFICIO
Plymouth County, TRUSTEE MEMBER AND ASSISTANT SECRETARY
PAUL OLDHAM, Office Manager
Algona Municipal Utilities,
TRUSTEE
SERVICE PROVIDERS
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
