IOWA SCHOOLS JOINT
INVESTMENT TRUST
INTERIM FINANCIAL REPORT
DECEMBER 31, 1996
SPONSORED BY THE
IOWA ASSOCIATION OF SCHOOL BOARDS
<PAGE>
TRUSTEES' REPORT
- - ----------------
To Iowa Schools Joint Investment Trust Participants:
The Iowa Schools Joint Investment Trust (ISJIT) 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. ISJIT maintained a consistent focus upon its three
complementary, prioritized 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 the calendar year 1996
and each preceding calendar year. Rates earned by ISJIT participants were
reflective of the general trend in interest rates throughout the year.
Participation in ISJIT's investment programs continues to grow and serve
additional participants. As of December 31, 1996, a total of 257 school
corporations and eligible 28E organizations were program participants. During
the period, total assets invested within the liquid funds ranged from a low of
$106,142,507 to a high of $277,747,522. When fixed term securities are included,
the respective figures range from a low of $212,010,566 to a high of
$369,677,784. Total funds invested in all ISJIT investment alternatives
throughout 1996 exceeded total funds invested in all previous operating periods.
The Board of Trustees is very pleased with the success of the ISJIT cash
management program.
The Board also welcomes any comments and suggestions from participants that
might enable ISJIT to be more responsive to the cash management needs of Iowa
school corporations.
Respectfully,
Carolyn Jons, 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 ISJIT 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 ISJIT 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. ISJIT continues to provide a competitive rate. Over the last
six-months, the yield of the diversified portfolio was 0.19 percent greater than
the Donoghue Index of national money market funds.
We appreciate your support of ISJIT 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 SCHOOLS JOINT INVESTMENT TRUST
DIVERSIFIED PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1996
(SHOWING PERCENTAGE OF NET ASSETS)
YIELD AT
TIME OF AMORTIZED
PAR VALUE DESCRIPTION PURCHASE DUE DATE COST
- - ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DISCOUNTED GOVERNMENT SECURITIES -- 21.29%
$ 1,500,000 Federal National Mortgage. Assoc.-Disc. Note 5.54% 01/03/97 $ 1,499,547
3,750,000 Federal Farm Credit Bank-Disc. Note 5.35% 01/29/97 3,734,804
5,000,000 Federal Home Loan Mortgage Corp.-Disc. Note 5.35% 02/04/97 4,975,397
2,000,000 Federal Home Loan Morgage Corp.-Disc. Note 5.46% 02/04/97 1,989,932
4,000,000 Federal National Mortgage Assoc.-Disc. Note 5.36% 02/06/97 3,979,160
2,316,000 Federal Home Loan Mortgage Corp.-Disc. Note 5.36% 02/07/97 2,303,575
1,000,000 Federal Home Loan Mortgage Corp.-Disc. Note 5.37% 02/11/97 994,055
5,000,000 Federal National Mortgage Assoc.-Disc. Note 5.38% 02/27/97 4,958,596
5,000,000 Federal National Mortgage Assoc.-Disc. Note 5.36% 03/17/97 4,945,729
2,500,000 Federal Home Loan Bank-Disc. Note 5.43% 06/12/97 2,441,275
2,560,000 Student Loan Mortgage Corp.-Disc. Note 5.45% 06/16/97 2,498,145
-------------
TOTAL (cost-- $34,320,215) $ 34,320,215
-------------
COUPON SECURITIES -- 45.34%
$ 2,600,000 Federal National Mtge. Assoc., 6.25% 5.51% 01/02/97 $ 2,600,049
4,875,000 Federal Farm Credit Bank, 5.56% 5.84% 01/02/97 4,874,946
1,100,000 Federal Home Loan Mortgage Corp., 7.73% 5.52% 01/06/97 1,100,318
225,000 Federal National Mtge. Assoc., 7.60% 5.51% 01/10/97 225,105
915,000 Federal National Mtge. Assoc., 7.60% 5.75% 01/10/97 915,400
1,020,000 Federal Home Loan Mortgage Corp., 7.91% 5.52% 01/13/97 1,020,765
5,000,000 Tennessee Valley Authority, 6.00% 5.36% 01/15/97 5,000,998
1,575,000 Tennessee Valley Authority, 6.00% 5.46% 01/15/97 1,575,244
1,000,000 Federal National Mtge. Assoc., 7.86% 5.41% 01/17/97 1,000,999
500,000 Federal Home Loan Mortgage Corp., 4.82% 5.53% 01/20/97 499.802
2,500,000 Federal Home Loan Bank, Variable Rate 5.35% 01/27/97 2,500,758
1,000,000 Federal Home Loan Bank, 4.57% 5.44% 02/03/97 999,164
500,000 Federal Home Loan Mortgage Corp., 5.25% 5.50% 02/14/97 499,821
2,000,000 Federal Home Loan Mortgage Corp., 5.25% 5.56% 02/14/97 1,999,035
5,000,000 Federal Home Loan Bank, 4..75% 5.51% 02/24/97 4,992,972
5,000,000 U.S. Treasury Notes, 6.875% 5.55% 02/28/97 5,010,052
1,000,000 Federal Farm Credit Bank, 9.00% 5.41% 03/07/97 1,006,389
3,000,000 Federal National Mtge. Assoc., 5.05% 5.30% 03/14/97 2,998,137
500,000 Federal Home Loan Bank, 6.94% 5.66% 03/14/97 501,205
2,000,000 Federal Home Loan Bank, 6.955% 5.68% 03/17/97 2,005,000
2,500,000 Federal Home Loan Bank, 5.40% 5.84% 03/20/97 2,497,653
2,500,000 U.S. Treasury Notes, 6.625% 5.58% 03/31/97 2,506,112
2,500,000 U.S. Treasury Notes, 6.875% 5.60% 03/31/97 2,507,436
1,000,000 Federal Home Loan Bank, 6.52% 5.81% 04/24/97 1,002,090
2,000,000 U.S. Treasury Notes, 6.50% 5.74% 04/30/97 2,004,777
2,000,000 Federal National Mtge. Assoc., 5.765% 6.03% 06/20/97 1,997,627
1,950,000 Federal National Mtge. Assoc., 5.765% 5.37% 06/20/97 1,953,449
1,300,000 Federal National Mtge. Assoc., 5.765% 5.45% 06/20/97 1,301,865
1,000,000 Federal Home Loan Mtge. Corp., 5.57% 5.56% 08/20/97 1,000,000
5,000,000 Fed. Nat'l Mtge. Assoc. Variable Rate 5.35% 08/22/97 4,998,831
2,500,000 Fed. Farm Credit Bank, Variable Rate 5.34% 10/01/97 2,499,607
2,500,000 Federal Home Loan Bank, Variable Rate 5.34% 10/02/97 2,498,537
5,000,000 Fed. Nat'l Mtge. Assoc. Variable Rate 5.47% 12/03/97 4,996,863
-------------
TOTAL (cost-- $73,091,006) $ 73,091,006
-------------
CERTIFICATES OF DEPOSIT -- 9.28%
$ 500,000 Union State Bank, Monona 5.85% 01/08/97 $ 500,000
250,000 Citizens Bank, Sac City 5.80% 01/08/97 250,000
1,000,000 First State Bank, Conrad 5.35% 01/09/97 1,000,000
250,000 Citizens Bank, Sac City 5.75% 01/10/97 250,000
500,000 Citizens Bank, Sac City 5.85% 01/13/97 500,000
400,000 Exchange Bank, Collins 5.85% 01/13/97 400,000
2,500,000 Mercantile Bank of Western Iowa, Des Moines 5.55% 01/27/97 2,500,000
500,000 Peoples Bank & Trust, Rock Valley 5.55% 01/28/97 500,000
500,000 Heritage Bank, Holstein 5.75% 02/12/97 500,000
250,000 Ft. Madison Bank & Tr, Ft. Madison 5.80% 02/18/97 250,000
2,500,000 Firstar Bank, Des Moines 5.25% 02/21/97 2,500,000
500,000 Union State Bank, Winterset 5.25% 02/21/97 500,000
1,000,000 Firstar Bank, Des Moines 5.50% 03/06/97 1,000,000
500,000 Peoples State Bank, Elkader 5.90% 03/24/97 500,000
300,000 First State Bank, Ida Grove 5.65% 06/04/97 300,000
1,000,000 Mercantile Bank of Eastern Iowa, Cedar Rapids 5.65% 06/09/97 1,000,000
500,000 Peoples State Bank, Elma 5.75% 06/23/97 500,000
500,000 Peoples Savings Bank, Elma 5.75% 06/25/97 500,000
300,000 Miles Savings Bank, Miles 6.00% 08/08/97 300,000
250,000 Ft. Madison Bank & Tr, Ft. Madison 6.05% 08/21/97 250,000
675,000 Mercantile Bank of Eastern Iowa, Mt. Pleasant 5.80% 11/21/97 675,000
300,000 Miles Savings Bank, Miles 5.80% 12/12/97 300,000
-------------
TOTAL (cost-- $14,975,000) $ 14,975,000
-------------
REPURCHASE AGREEMENTS (collateralized by U.S. government securities) -- 23.52%
$ 18,958,000 J.P. Morgan, Repurchase Agreement 6.25% 01/02/97 $ 18,958,000
18,959,000 Smith Barney, Repurchase Agreement 6.35% 01/02/97 18,959,000
-------------
TOTAL (cost-- $37,917,000) $ 37,917,000
-------------
TOTAL INVESTMENTS-- 99.43% (cost-- $160,303,221) $ 160,303,221
EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES-- 0.57% $ 914,128
(Includes $33,889 payable to IMG and $661,089 -------------
dividends payable to unitholders)
NET ASSETS-- 100% $ 161,217,349
Applicable to 161,217,349 outstanding units =============
NET ASSET VALUE: $ 1.00
Offering and redemption price per unit ($161,217,349 =============
divided by 161,217,349 units outstanding)
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
IOWA SCHOOLS JOINT INVESTMENT TRUST
DIRECT GOVERNMENT OBLIGATION PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1996
(SHOWING PERCENTAGE OF NET ASSETS)
- - ----------------------------------
YIELD AT
TIME OF AMORTIZED
PAR VALUE DESCRIPTION PURCHASE DUE DATE COST
- - ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COUPON SECURITIES -- 31.22%
$ 1,000,000 U. S. Treasury Note, 6.75% 5.42% 02/28/97 $ 1,002,027
1,000,000 U. S. Treasury Note, 6.625% 5.59% 03/31/97 1,002,408
1,000,000 U. S. Treasury Note, 6.50% 5.74% 04/30/97 1,002,388
1,000,000 U. S. Treasury Note, 6.375% 5.29% 06/30/97 1,005,181
1,000,000 U. S. Treasury Note, 8.50% 5.38% 07/15/97 1,016,199
1,000,000 U. S. Treasury Note, 8.50% 5.38% 07/15/97 1,016,231
1,000,000 U. S. Treasury Note, 5.875% 5.37% 07/31/97 1,002,783
1,000,000 U. S. Treasury Note, 5.875% 5.39% 07/31/97 1,002,652
-------------
TOTAL (cost-- $8,049,869) $ 8,049,869
-------------
REPURCHASE AGREEMENTS (collateralized by U.S. government securities) -- 68.51%
$ 17,663,000 Smith Barney, Repurchase Agreement 6.30% 01/02/97 $ 17,663,000
-------------
TOTAL (cost-- $17,663,000) $ 17,663,000
-------------
TOTAL INVESTMENTS-- 99.73% (cost-- $25,712,869) $ 25,712,869
EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES-- 0.27% $ 68,933
(Includes $3,176 payable to IMG and $101,465 -------------
dividends payable to unitholders)
NET ASSETS-- 100% $ 25,781,802
Applicable to 25,781,802 outstanding units =============
NET ASSET VALUE: $ 1.00
Offering and redemption price per unit ($25,781,802 =============
divided by 25,781,802 units outstanding)
</TABLE>
See Notes to Financial Statements.
<PAGE>
IOWA SCHOOLS JOINT INVESTMENT TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
- - ------------------------------------------
DIRECT GOVERNMENT
DIVERSIFIED PORTFOLIO OBLIGATION PORTFOLIO
INVESTMENT INCOME:
Interest $ 3,532,229 $ 581,125
------------- -------------
EXPENSES:
Investment advisory and
program support fees 160,323 16,179
Custody and administrative fees 145,641 35,769
Distribution fees 64,856 11,006
Other fees and expenses 19,457 3,302
------------- -------------
Total Expenses 390,277 66,256
------------- -------------
NET INVESTMENT INCOME $ 3,141,952 $ 514,869
============= =============
See Notes to Financial Statements.
<PAGE>
IOWA SCHOOLS JOINT 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 $ 3,141,952 $ 3,447,490 $ 514,869 $ 820,112
================ ================ ============== ================
From Unit Transactions:
(at constant net asset
value of $1 per unit)
Units sold $ 496,532,346 $ 427,404,925 $ 17,759,495 $ 14,066,301
Units issued in reinvest-
ment of dividends from
net investment income 3,141,952 3,447,490 514,869 820,112
Units redeemed (510,011,213) (428,953,726) (15,214,369) (10,567,440)
----------------- ----------------- --------------- ---------------
Net increase/(decrease)
in net assets derived
from unit transactions (10,336,915) 1,898,689 (3,059,995) (4,318,973)
Net assets at
beginning of period 171,554,264 164,119,282 22,721,807 30,481,921
----------------- ----------------- -------------- ----------------
Net assets at end
of six months $ 161,217,349 $ 166,017,971 $ 25,781,802 $ 34,800,894
================= ================= =============== ================
</TABLE>
See Notes to Financial Statements.
<PAGE>
IOWA SCHOOLS JOINT INVESTMENT TRUST
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 1988
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
IOWA SCHOOLS JOINT 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
Net Investment
Income .049 .053 .043 .027 .031 .073 .073 .080 .073
Dividends
Distributed (.049) (.053) (.043) (.027) (.031) (.073) (.073) (.080) (.073)
--------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
==================================================================================================
Total Return 4.85% 5.31% 4.33% 2.68% 3.11% 7.26% 7.27% 8.05% 7.26%
Ratio of Expenses
to Average
Net Assets 0.60% 0.59% 0.59% 0.58% 0.58% 0.62% 0.66% 0.67% 0.67%
Ratio of Net
Income to
Average
Net Assets 4.85% 5.31% 4.33% 2.68% 3.11% 7.26% 7.27% 8.05% 7.26%
Net Assets,
End of Period
(000 Omitted) $161,217 $166,018 $128,985 $143,987 $143,378 $110,353 $103,212 $ 60,102 $ 58,366
</TABLE>
<PAGE>
<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 SCHOOLS JOINT 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 .047 .052 .042 .025 .030 .049 .073 .080
Dividends
Distributed (.047) (.052) (.042) (.025) (.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 4.68% 5.21% 4.23% 2.54% 2.98% 4.93% 7.28% 8.05%
Ratio of Expenses
to Average
Net Assets 0.60% 0.59% 0.59% 0.58% 0.58% 0.62% 0.65% 0.65%
Ratio of Net
Income to
Average
Net Assets 4.68% 5.21% 4.23% 2.54% 2.98% 4.93% 7.28% 8.05%
Net Assets,
End of Period
(000 Omitted) $ 25,781 $ 34,801 $ 27,743 $ 32,508 $ 28,713 $ 29,228 $ 27,443 $ 18,688
</TABLE>
<PAGE>
IOWA SCHOOLS JOINT INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
- - -----------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Iowa Schools Joint Investment Trust (ISJIT) is a common law trust
established under Iowa law pursuant to Chapter 28E and Section 279.29, Iowa
Code (1985), as amended, which authorizes Iowa schools to jointly invest
moneys pursuant to a joint investment agreement. ISJIT is registered under
the Investment Company Act of 1940. ISJIT was established by the adoption
of a Joint Powers Agreement and Declaration of Trust as of October 1, 1986,
and commenced operations on December 16, 1986. The Joint Powers Agreement
and Declaration of Trust was amended September 22, 1988, and again on May
1, 1993. As amended, ISJIT is authorized 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 schools 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
ISJIT's Administrator and Custodian, and Investors Management Group serves
as the Investment Advisor.
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,
ISJIT'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 ISJIT'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 ISJIT may be delayed or limited. At June 30, 1996 the
securities purchased under overnight agreements to resell were
collateralized by government agency securities with market values of
$38,675,340 and $18,023,450 for the Diversified Portfolio and the Direct
Government Obligation Portfolio, respectively.
UNIT ISSUES, REDEMPTIONS, AND DISTRIBUTIONS
ISJIT determines the net asset value of each portfolio account 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
ISJIT is exempt from federal and state income tax.
FEES AND EXPENSES
Under separate agreements with ISJIT, Investors Management Group (IMG), the
Investment Advisor and Program Support Provider, and Norwest Bank, Iowa,
N.A. (Norwest), the Custodian and Administrator are paid an annual fee for
operating the investment programs. For each of the portfolios, IMG receives
.150 percent of the average daily net asset value up to $150 million and
.125 percent exceeding $150 million for investment advisor fees. In
addition, IMG receives .10 percent of the average daily net asset value of
the Diversified Portfolio for program support fees. For the period ended
December 31, 1996, the Diversified Portfolio and the Direct Government
Obligation Portfolio paid $160,323 and $16,179, 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 $200 million, and .040 percent exceeding $200 million
for custodial services. For the Diversified Portfolio, Norwest receives
.175 percent of the average daily net asset value up to $150 million, .165
percent from $150 to $200 million, and .150 percent exceeding $200 million;
for the Direct Government Obligation Portfolio, Norwest receives .275
percent of the average daily net asset value up to $150 million, .265
percent from $150 to $200 million, and .250 percent exceeding $200 million
for administrative services. For the period ended December 31, 1996, the
Diversified Portfolio and the Direct Government Obligation Portfolio paid
$145,641 and $35,769 respectively to Norwest for services provided. Under a
distribution plan, the sponsoring association receives 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 $64,856 and $11,006 respectively to
the Iowa Association of School Boards. ISJIT is responsible for operating
expenses incurred directly by ISJIT. 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 $5,500,750,000 and
$2,274,178,000 respectively for the six months ended December 31, 1995.
Proceeds from maturities of securities for the Diversified Portfolio and
Direct Government Obligation Portfolio aggregated $5,526,875,649 and
$2,264,254,000, respectively for the six months ended December 31, 1995.
<PAGE>
BOARD OF TRUSTEES
- - -----------------
CAROLYN JONS, Chairperson, Ames
DON WILLIAMS, Chairperson, Villisca
GARY D. BENGSTEN, Treasurer, Carroll
GERALD COWELL, Trustee, Creston
RICHARD VANDE KIEFT, Trustee, Cedar Falls
DEAN BORG, Trustee, Mount Vernon
SERVICE PROVIDERS
- - -----------------
INVESTMENT ADVISOR:
Investors Management Group
2203 Grand Avenue
Des Moines, IA 50312-5338
CUSTODIAN AND ADMINISTRATOR:
Norwest Bank Iowa, N.A.
666 Walnut, P.O. Box 837
Des Moines, IA 50304
LEGAL COUNSEL:
Ahlers, Cooney, Dorweiler, Haynie,
Smith & Allbee, P.C.
100 Court Avenue
Des Moines, IA 50309
INDEPENDENT AUDITORS:
KPMG Peat Marwick LLP
2500 Ruan Center
Des Moines, IA 50309
FOR INVESTMENT INFORMATION . . .
c/o Norwest Bank Iowa, N.A.
666 Walnut, P.O. Box 837
Des Moines, Iowa 50304
Toll Free (800) 872-0140 or (515) 245-3245
