IOWA PUBLIC AGENCY INVESTMENT TRUST
INTERIM FINANCIAL REPORT
DECEMBER 31, 1999
SPONSORED BY THE
IOWA ASSOCIATION OF MUNICIPAL UTILITIES
IOWA STATE ASSOCIATION OF COUNTIES
IOWA LEAGUE OF CITIES
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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, 1999.
During 1999, market rates for short-term securities increased as the Federal
Reserve Board increased overnight rates on three separate occasions for a total
of 0.75 percent. IPAIT's rates increased during the period by a similar amount.
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, 1999, a total of 168 cities, 86
counties, 73 municipal utilities and 37 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 $242,104,825 to a high of $331,481,323. When
fixed term securities are included, the respective figures range from a low of
$405,175,159 to a high of $488,704,626. Average total funds invested in 1999 for
all investment alternatives exceeded average total funds for much of the year,
reaching an all-time high of $514,462,963 on April 9, 1999.
IPAIT also introduced participants to www.ipait.org during the period, IPAIT's
proprietary website that enables participants to access every component of
program performance, including electronic transaction investment and withdrawal
requests.
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 increasingly
responsive to member needs.
Respectfully,
Robert Hagey, Chair
Board of Trustees
<PAGE>
MANAGEMENT DISCUSSION
During the first half of fiscal year 1999-00, short-term interest rates
increased. The Federal Reserve increased the Federal Funds rate three times to
stabilize financial markets and temper domestic economic growth. The Fed became
increasingly concerned that a vibrant domestic economy might expand too rapidly,
introducing the possibility of inflationary excess.
The domestic economic growth continues to be strong, led by consumer and
construction spending. The global economic environment has largely stabilized, a
dramatic turn-around from one year ago. This combination of factors will likely
cause the Federal Reserve to increase interest rates over the next several
months if they change rates at all.
The rate on the IPAIT Diversified Fund increased from 4.39 percent to 5.13
percent during the period. The Fund consistently provided a rate more than 0.20
percent above the IBC Index of national money market funds.
The average maturity of the Fund ended the period at 44 days, taking advantage
of increasing rates in both marketable securities and Certificates of Deposit
offered by Iowa financial institutions when advantageous.
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
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IOWA PUBLIC AGENCY INVESTMENT TRUST
DIVERSIFIED PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
(Showing Percentage of Net Assets)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield at
Par Time of Amortized
Value Description Purchase Due Date Cost
----- ----------- -------- -------- ----
<S> <C> <C> <C> <C>
DISCOUNTED GOVERNMENT SECURITIES -- 27.25%
$5,000,000 Federal Home Loan Mortgage Corporation-Discount Note 5.74% 01/10/00 $4,993,025
4,283,000 Student Loan Marketing Association-Discount Note 5.91% 01/10/00 4,276,790
2,618,000 Federal Home Loan Mortgage Corporation-Discount Note 5.77% 01/13/00 2,613,069
4,398,000 Federal Home Loan Mortgage Corporation-Discount Note 5.43% 01/20/00 4,385,907
1,100,000 Federal Home Loan Mortgage Corporation-Discount Note 5.77% 01/21/00 1,096,578
4,300,000 Federal Agricultural Mortgage Corporation-Discount Note 5.84% 01/21/00 4,286,288
5,000,000 Federal National Mortgage Association-Discount Note 5.66% 01/27/00 4,980,048
5,000,000 Federal National Mortgage Association-Discount Note 5.67% 01/27/00 4,979,994
1,000,000 Federal Home Loan Mortgage Corporation-Discount Note 5.68% 01/27/00 995,992
1,644,000 Federal Home Loan Mortgage Corporation-Discount Note 5.76% 02/03/00 1,635,591
5,000,000 Federal Home Loan Mortgage Corporation-Discount Note 5.71% 02/04/00 4,973,886
-----------------
TOTAL (cost -- $39,217,168) $39,217,168
-----------------
COUPON SECURITIES -- 46.98%
$1,000,000 Federal National Mortgage Association, 6.15% 5.64% 01/13/00 $1,000,155
1,750,000 Federal Home Loan Bank, 4.90% 5.74% 01/14/00 1,749,421
2,300,000 Federal Home Loan Bank, 4.90% 6.42% 01/14/00 2,298,702
2,300,000 Federal National Mortgage Association, 6.07% 5.64% 01/20/00 2,300,484
1,000,000 Federal Farm Credit Bank, 6.49% 6.13% 01/20/00 1,000,091
2,357,000 Federal National Mortgage Association, 5.34% 5.64% 01/24/00 2,356,558
2,000,000 Federal National Mortgage Association, 5.43% 5.72% 01/27/00 1,999,454
2,835,000 Federal Farm Credit Bank, 4.80% 5.78% 02/01/00 2,832,540
6,000,000 Student Loan Marketing Association, Variable Rate, 5.888%* 5.83% 02/02/00 5,998,528
5,000,000 Federal Home Loan Bank, 6,222% 5.52% 02/11/00 5,003,752
1,915,000 Federal Home Loan Bank, 6,222% 5.52% 02/11/00 1,916,433
3,000,000 Federal Home Loan Bank, 4.725% 5.86% 02/15/00 2,995,920
2,000,000 Federal Home Loan Bank, 4.95% 5.87% 02/24/00 1,997,264
2,500,000 Federal National Mortgage Association, 5.91% 5.23% 02/25/00 2,502,407
2,500,000 Federal Home Loan Bank, 5.22% 5.77% 03/17/00 2,496,381
1,000,000 Federal Home Loan Bank, Variable Rate, 4.595%* 5.88% 03/22/00 997,220
1,225,000 Federal Home Loan Mortgage Corporation, 5.875% 6.18% 03/22/00 1,223,918
5,000,000 Federal Home Loan Bank, Variable Rate, 5.913%* 4.95% 03/24/00 5,000,000
1,000,000 Federal National Mortgage Association, 9.05% 6.33% 04/10/00 1,006,951
5,000,000 Federal Home Loan Bank, Variable Rate, 5.923%* 4.83% 04/12/00 4,999,443
5,000,000 Federal Home Loan Bank, Variable Rate, 5.923%* 5.21% 04/12/00 5,000,510
1,000,000 Federal Home Loan Bank, 5.50% 5.55% 04/14/00 999,835
7,500,000 Federal Home Loan Mortgage Corporation, Variable Rate, 5.963%* 4.86% 04/14/00 7,498,935
2,000,000 Federal National Mortgage Association, 5.52% 6.28% 04/17/00 1,995,229
1,000,000 Federal National Mortgage Association, 6.41% 5.67% 05/22/00 1,002,727
1,000,000 Federal Home Loan Bank, 5.625% 5.63% 06/02/00 999,965
1,000,000 Federal National Mortgage Association, 6.25% 5.96% 06/16/00 1,001,236
500,000 Federal Home Loan Bank, 5.50% 5.61% 07/14/00 499,709
1,000,000 Federal Farm Credit Bank, 6.69% 6.27% 07/18/00 1,002,144
7,000,000 Federal National Mortgage Association, 5.67% 5.67% 07/21/00 7,000,000
5,000,000 Federal Home Loan Bank, Variable Rate, 5.993%* 5.28% 07/28/00 4,997,430
5,000,000 Federal National Mortgage Association, Variable Rate, 6.30%* 5.07% 08/02/00 4,998,027
5,000,000 Federal National Mortgage Association, Variable Rate, 5.62%* 5.17% 08/09/00 4,998,491
2,000,000 Federal Farm Credit Bank, 5.66% 5.95% 08/11/00 1,996,360
1,000,000 Federal Home Loan Bank, 5.57% 5.97% 08/14/00 997,536
1,000,000 Federal National Mortgage Association, 5.31% 6.12% 09/15/00 994,420
500,000 Federal Home Loan Mortgage Corporation, 5.97% 6.08% 09/25/00 499,578
1,450,000 Federal Home Loan Bank, 5.895% 6.09% 10/16/00 1,447,749
500,000 Federal National Mortgage Association, 6.22% 6.22% 11/08/00 500,000
-----------------
TOTAL (cost -- $100,105,503) $100,105,503
-----------------
CERTIFICATES OF DEPOSIT -- 17.31%
$1,000,000 American State Bank, Sioux Center 5.50% 01/10/00 $1,000,000
150,000 Community Bank, Preston 5.90% 01/11/00 150,000
1,000,000 Community First National Bank, Decorah 5.63% 01/11/00 1,000,000
300,000 Community Bank, Miles 5.90% 01/11/00 300,000
500,000 Maquoketa State Bank, Maquoketa 5.10% 01/11/00 500,000
500,000 Farmers State Bank, Hawarden 5.85% 01/12/00 500,000
5,000,000 Bankers Trust Company, Des Moines 5.85% 01/13/00 5,000,000
2,500,000 First National Bank, Ames 5.55% 01/18/00 2,500,000
2,000,000 First State Bank, Conrad 5.85% 01/18/00 2,000,000
500,000 American State Bank, Sioux Center 5.70% 01/19/00 500,000
1,000,000 DeWitt Bank & Trust, DeWitt 5.85% 01/20/00 1,000,000
1,000,000 DeWitt Bank & Trust, DeWitt 5.85% 01/24/00 1,000,000
500,000 American State Bank, Sioux Center 5.95% 01/24/00 500,000
1,000,000 Community First National Bank, Decorah 5.85% 01/24/00 1,000,000
250,000 Farmers State Bank, Hawarden 6.00% 01/26/00 250,000
1,000,000 Community First National Bank, Decorah 5.90% 01/27/00 1,000,000
2,000,000 First State Bank, Conrad 6.00% 01/28/00 2,000,000
2,000,000 Peoples Bank, Elkader 5.80% 02/15/00 2,000,000
500,000 Citizens Bank, Sac City 5.10% 02/17/00 500,000
250,000 Ft. Madison Bank & Trust, Ft. Madison 5.20% 02/18/00 250,000
1,000,000 DeWitt Bank & Trust, DeWitt 5.20% 02/25/00 1,000,000
500,000 Union State Bank, Winterset 5.20% 02/28/00 500,000
500,000 Union State Bank, Monona 5.95% 03/14/00 500,000
500,000 Hartford-Carlisle Savings Bank, Carlisle 5.75% 03/16/00 500,000
500,000 Hartford-Carlisle Savings Bank, Carlisle 5.50% 03/16/00 500,000
1,000,000 Peoples Savings Bank, Elma 5.95% 03/20/00 1,000,000
250,000 Farmers State Bank, Hawarden 5.95% 03/22/00 250,000
1,000,000 St. Ansgar State Bank, St. Ansgar 5.38% 04/11/00 1,000,000
500,000 American Bank, LeMars 5.38% 04/13/00 500,000
400,000 Exchange Bank, Collins 5.38% 04/14/00 400,000
200,000 Maxwell State Bank, Maxwell 5.25% 04/21/00 200,000
500,000 American Bank, LeMars 5.25% 05/01/00 500,000
250,000 Ft. Madison Bank & Trust, Ft. Madison 6.00% 05/22/00 250,000
300,000 First State Bank, Ida Grove 6.00% 05/30/00 300,000
1,000,000 St. Ansgar State Bank, St. Ansgar 6.05% 06/07/00 1,000,000
500,000 First Federal Bank, Newton 6.05% 06/14/00 500,000
250,000 Citizens Bank, Sac City 6.05% 06/19/00 250,000
250,000 Citizens Bank, Sac City 5.75% 07/05/00 250,000
500,000 American Bank, LeMars 5.75% 07/20/00 500,000
600,000 DeWitt Bank & Trust, DeWitt 5.95% 08/09/00 600,000
500,000 First State Bank, Nora Springs 5.95% 08/22/00 500,000
300,000 State Savings Bank, Baxter 6.00% 09/08/00 300,000
500,000 First American Bank, Ames 6.05% 09/20/00 500,000
500,000 American Bank, LeMars 6.15% 10/10/00 500,000
400,000 Exchange Bank, Collins 6.15% 10/12/00 400,000
1,000,000 Union State Bank, Winterset 6.20% 10/23/00 1,000,000
250,000 State Savings Bank, Baxter 6.20% 10/24/00 250,000
-----------------
TOTAL (cost -- $36,900,000) $36,900,000
-----------------
REPURCHASE AGREEMENTS (collateralized by U.S. Govt. Securities) -- 16.79%
$17,889,000 Merrill Lynch, Repurchase Agreement 3.00% 01/03/00 $17,889,000
17,889,000 SBC Warburg Dillon Read, Repurchase Agreement 2.75% 01/03/00 17,889,000
-----------------
TOTAL (cost -- $35,778,000) $35,778,000
-----------------
TOTAL INVESTMENTS -- 99.48% (cost -- $212,000,671) $212,000,671
EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES -- .52%
(Includes $58,405 payable to IMG and $931,497
dividends payable to unitholders) $1,109,467
-----------------
NET ASSETS -- 100%
Applicable to 213,110,138 outstanding units $213,110,138
=================
NET ASSET VALUE:
Offering and redemption price per unit ($213,110,138
divided by 213,110,138 units outstanding) $1.00
=================
*Denotes floating rate investment with interest rate as of December 31, 1999.
See accompanying notes to financial statements.
</TABLE>
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IOWA PUBLIC AGENCY INVESTMENT TRUST
DIRECT GOVERNMENT OBLIGATION PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
(Showing Percentage of Net Assets)
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<TABLE>
<CAPTION>
Yield at
Par Time of Amortized
Value Description Purchase Due Date Cost
----- ----------- -------- -------- ----
<S> <C> <C> <C> <C>
COUPON SECURITIES -- 15.52%
$3,000,000 Private Export Funding, 7.90% 5.57% 03/31/00 $3,016,433
1,550,000 Private Export Funding, 7.90% 6.12% 03/31/00 1,556,214
5,000,000 Housing Urban Development, 6.59% 5.92% 08/01/00 5,018,268
-----------------
TOTAL (cost -- $9,590,915) $9,590,915
-----------------
REPURCHASE AGREEMENTS (collateralized by U.S. Govt. Securities) -- 84.57%
$52,275,000 SBC Warburg Dillon Read, Repurchase Agreement 2.75% 01/00/00 $52,275,000
-----------------
TOTAL (cost -- $52,275,000) $52,275,000
-----------------
TOTAL INVESTMENTS -- 100.09% (cost -- $61,865,915) $61,865,915
EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES -- (.09%)
(Includes $17,941 payable to IMG and $257,371
dividends payable to unitholders) ($55,851)
-----------------
NET ASSETS -- 100%
Applicable to 61,810,064 outstanding units $61,810,064
=================
NET ASSET VALUE:
Offering and redemption price per unit ($61,810,064
divided by 61,810,064 units outstanding) $1.00
See accompanying notes to financial statements.
</TABLE>
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
STATEMENT OF OPERATIONS
FOR THE PERIOD JULY 1, 1999 TO DECEMBER 31, 1999
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DIVERSIFIED DIRECT GOVERNMENT
PORTFOLIO OBLIGATION PORTFOLIO
------------ ---------------------
INVESTMENT INCOME:
Interest $5,329,979 $1,967,054
============ =====================
EXPENSES:
Investment advisory, administrative,
and program support fees 316,488 124,776
Custody and bank trust services fees 122,709 47,264
Distribution fees 99,107 37,811
Other fees and expenses 24,777 9,453
------------ ---------------------
Total Expenses 563,081 219,304
------------ ---------------------
NET INVESTMENT INCOME $4,766,898 $1,747,750
============ =====================
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD JULY 1, 1999 TO DECEMBER 31, 1999
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DIVERSIFIED DIRECT GOVERNMENT
PORTFOLIO OBLIGATION PORTFOLIO
------------ ---------------------
From Investment Activities:
Net investment income
distributed to unitholders $4,766,898 $1,747,750
============ =====================
From Unit Transactions:
(at constant net asset value of $1
per unit)
Units sold $522,600,517 $9,777,222
Units issued in reinvestment
of dividends from net
investment income 4,766,898 1,747,750
Units redeemed (502,816,113) (37,311,289)
------------ ---------------------
Net increase (decrease) in net assets
derived from unit transactions 24,551,302 (25,786,317)
Net assets at beginning of period 188,558,836 87,596,381
------------ ---------------------
Net assets at end of period $213,110,138 $61,810,064
============ =====================
See accompanying notes to financial statements.
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
DIVERSIFIED PORTFOLIO
SELECTED DATA FOR A UNIT PORTFOLIO
OUTSTANDING THROUGH EACH PERIOD*
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<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
--------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net Investment Income 0.048 0.048 0.051 0.049 0.053
Dividends Distributed (0.048) (0.048) (0.051) (0.049) (0.053)
--------------------------------------------------------
Net Asset Value,
End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Total Return 4.79% 4.81% 5.11% 4.87% 5.30%
Ratio of Expenses
to Average Net Assets 0.57% 0.57% 0.57% 0.57% 0.57%
Ratio of Net Income to
Average Net Assets 4.79% 4.81% 5.11% 4.87% 5.30%
Net Assets,
End of Period
(000 Omitted) $213,110 $192,712 $161,914 $214,444 $187,247
</TABLE>
*For the six month period ending December 31, annualized.
See accompanying notes to financial statements.
DIRECT GOVERNMENT OBLIGATION PORTFOLIO
SELECTED DATA FOR A UNIT PORTFOLIO
OUTSTANDING THROUGH EACH PERIOD*
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<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
--------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net Investment Income 0.046 0.047 0.050 0.048 0.052
Dividends Distributed (0.046) (0.047) (0.050) (0.048) (0.052)
--------------------------------------------------------
Net Asset Value,
End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Total Return 4.63% 4.68% 5.01% 4.81% 5.21%
Ratio of Expenses
to Average Net Assets 0.58% 0.58% 0.58% 0.58% 0.58%
Ratio of Net Income to
Average Net Assets 4.63% 4.68% 5.01% 4.81% 5.21%
Net Assets,
End of Period
(000 Omitted) $ 61,810 $ 72,730 $ 52,182 $ 55,091 $ 45,379
</TABLE>
*For the six month period ending December 31, annualized.
See accompanying notes to financial statements.
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
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 investment programs, including the
Diversified Portfolio and Direct Government Obligation Portfolios. The
accompanying financial statements include activities of the Diversified and
Direct Government Obligation Portfolios. 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.
Norwest Bank Iowa, N.A., serves as the Custodian and Bank Trust Services
Provider, and Investors Management Group serves as the Investment Advisor,
Administrator and Program Support Provider.
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 net investment income 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 Portfolio and adheres to policies which mitigate market risk in the
portfolio 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 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 the 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.
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
either directly or through an authorized custodian.
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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, 1999, the securities purchased under overnight
agreements to resell were collateralized by government and government agency
securities with market values of $36,498,413 and $53,321,469 for the Diversified
and Direct Government Obligation Portfolios, repsectively.
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.
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.
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 .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 .100 percent of the average daily net asset value up to $250 million
and .125 percent exceeding $250 million for program support fees. For the six
month period ended December 31, 1999 the Diversified and Direct Government
Obligation Portfolios paid $316,488 and $124,776, respectively, to IMG for
services provided. For each of the portfolios, Norwest receives .050 percent of
the average daily net asset value up to $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 six month period ended December 31, 1999, the
Diversified and Direct Government Obligation Portfolios paid $122,709 and
$47,264, repsectively, to Norwest for services provided. Under a distribution
plan the public agency associations collectively receive an annual fee of .100
percent of the daily net asset value of the portfolios. For the six month period
ended December 31, 1999, the Diversified and Direct Government Obligation
Portfolios paid $52,553 and $34,678, respectively, to the Iowa League of Cities,
and $13,387 and $3,133, respectively, to the Iowa Association of Municipal
Utilities. For the six month period ended December 31, 1999, the Diversified
Portfolio paid $33,167 to Iowa State Association of Counties. IPAIT is
responsible for operating expenses incurred directly by IPAIT. All fees are
computed daily and paid monthly.
<PAGE>
IOWA PUBLIC AGENCY INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(2) SECURITIES TRANSACTIONS
Purchases of portfolio securities for the Diversified and Direct Government
Obligation Portfolios aggregated $6,969,108,717 and $8,860,228,086,
respectively, for the six month period ended December 31, 1999. Proceeds from
maturities of securities for the Diversified and Direct Government Obligation
Portfolios aggregated $6,944,497,418 and $8,886,159,000, respectively, for the
six month period ended December 31, 1999.
<PAGE>
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<PAGE>
BOARD OF TRUSTEES
ROBERT HAGEY, Treasurer, Sioux PAUL OLDHAM, Office Manager,
County, Chair Algona Municipal Utilities, Trustee
TOM HANAFAN, Mayor, Council JODY E. SMITH, Director of
Bluffs, Vice Chair Administrative Services, West Des
DON KERKER, Director of Finance Moines, Trustee
and Administrative Services, BOB HAUG, Executive Director,
Muscatine Power and Water, Iowa Association of Municipal
Trustee Utilities, Ex-Officio Member and
ARLYS HANNAM, City Clerk, Secretary
Coralville, Trustee THOMAS BREDEWEG, Executive
JIM AHRENHOLTZ, Office Manager, Director, Iowa League of Cities,
Denison Municipal Utility, Trustee Ex-Officio Member and Treasurer
FLOYD MAGNUSSON, Supervisor, WILLIAM PETERSON, Executive
Webster County, Trustee Director, Iowa State Association of
NORMAN KEHRBERG, Treasurer, Counties, Ex-Officio Member and
Plymouth County, Trustee Assistant Secretary
SERVICE PROVIDERS
ADMINISTRATOR - INVESTMENT ADVISOR: LEGAL COUNSEL:
Investors Management Group Ahlers, Cooney, Dorweiler, Haynie,
2203 Grand Avenue Smith & Allbee, P.C.
Des Moines, IA 50312-5338 100 Court Avenue, Ste. 600
Des Moines, IA 50309
CUSTODIAN AND BANK TRUST SERVICE PROVIDER: INDEPENDENT AUDITORS:
Norwest Bank Iowa, N.A. KPMG LLP
666 Walnut, P.O. Box 837 2500 Ruan Center
Des Moines, IA 50304 Des Moines, IA 50309
IOWA PUBLIC AGENCY INVESTMENT GROUP
www.ipait.org
666 Walnut, P.O. Box 837
Des Moines, Iowa 50304
(800) 872-0140 or (515) 245-3245
