IOWA SCHOOLS JOINT
INVESTMENT TRUST
INTERIM FINANCIAL REPORT
DECEMBER 31, 1999
SPONSORED BY THE
IOWA ASSOCIATION OF SCHOOL BOARDS
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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, 1999.
During 1999, market rates for short-term securities increased in the second half
of the year as the Federal Reserve Board increased overnight rates on three
separate occasions for a total of 0.75 percent. Investment rates increased by a
similar amount during the period. ISJIT maintained a consistent focus upon its
three complementary investment objectives: protection of participant's invested
funds, maintenance of the necessary degree of liquidity to accommodate
participant cash management needs, and providing participants with an excellent
market rate of return throughout the year.
ISJIT's investment programs continue to grow. As of December 31, 1999, three
hundred twenty-two school corporations and other eligible organizations were
authorized to invest in ISJIT, pursuant to Iowa Code chapter 28E. During the
semi-annual period, total assets invested within the liquid funds ranged from a
low of $155,094,297 to a high of $305,449,895. When fixed term securities are
included, the respective figures range from a low of $272,955,046 to a high of
$417,449,716. Total funds invested in 1999 set several records, reaching a
record high of $499,098,170 on May 19, 1999.
The Board of Trustees is very pleased with the success of the ISJIT cash
management program and welcomes your comments or suggestions. Our goal is to
provide a cash management program that is consistently responsive to member
needs.
Respectfully,
Dean Borg, Chair
Board of Trustees
<PAGE>
MANAGEMENT DISCUSSION
During the first half of fiscal year 1999-00, short-term interest rates
increased. The Federal Reserve raised the Federal Funds rate three times to
stabilize financial markets and calm a vibrant domestic economy. The Fed had
become increasingly concerned as the domestic economy continued to show
surprising signs of strength.
The domestic economic growth continues to be strong, led by consumer and
construction spending. The global economic environment has largely stabilized, a
condition significantly different than just one year ago. This combination of
factors will likely cause the Federal Reserve to raise interest rates in the
next several months if they take action.
The rate on the ISJIT Diversified Fund increased from 4.43 percent to 4.72
percent during the period. The Fund consistently provided a rate 0.20 percent
above the IBC Index of national money market funds.
The average maturity of the Fund ended the period at 49 days, taking advantage
of advantageous yields offered by marketable securities and Certificates of
Deposit offered by Iowa financial institutions when available.
The ISJIT 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 SCHOOLS JOINT INVESTMENT TRUST
DIVERSIFIED PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
(Showing Percentage of Net Assets)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield at
Time of Amortized
Par Value Description Purchase Due Date Cost
- --------- ----------- -------- -------- ----
<S> <C> <C> <C> <C>
DISCOUNTED GOVERNMENT SECURITIES -- 26.88%
$7,500,000 Student Loan Marketing Association-Discount Note 5.79% 01/10/00 $7,489,350
5,000,000 Federal Home Loan Mortgage Corporation-Discount Note 5.81% 01/14/00 4,989,708
5,700,000 Federal National Mortgage Association-Discount Note 5.81% 01/20/00 5,682,852
5,000,000 Federal National Mortgage Association-Discount Note 5.66% 01/27/00 4,980,049
----------------
TOTAL (cost -- $23,141,959) $23,141,959
----------------
COUPON SECURITIES -- 58.81%
$4,000,000 Federal National Mortgage Association, 4.83% 5.83% 01/11/00 $3,998,846
1,000,000 Federal National Mortgage Association, 4.83% 5.78% 01/11/00 999,715
2,500,000 Federal National Mortgage Association, 5.60% 5.80% 01/12/00 2,499,781
1,000,000 Federal National Mortgage Association, 5.60% 5.76% 01/12/00 999,917
500,000 Federal National Mortgage Association, 5.60% 5.98% 01/12/00 499,924
1,500,000 Federal Home Loan Bank, 4.86% 5.89% 01/14/00 1,499,401
2,000,000 Federal National Mortgage Association, 5.44% 6.08% 01/14/00 1,999,458
6,000,000 Federal Farm Credit Bank, 5.56% 5.81% 01/18/00 5,999,142
5,000,000 Federal Farm Credit Bank, 5.56% 6.04% 01/18/00 4,998,749
5,000,000 Student Loan Marketing Association, Variable Rate, 6.113%* 5.09% 01/20/00 4,999,990
3,000,000 Federal National Mortgage Association, 6.07% 5.85% 01/20/00 3,000,196
2,500,000 Federal National Mortgage Association, 6.07% 5.72% 01/20/00 2,500,321
1,275,000 Federal Home Loan Bank, 8.60% 5.82% 01/25/00 1,277,180
1,500,000 Federal Home Loan Bank, 8.60% 5.80% 01/25/00 1,502,541
1,500,000 Federal National Mortgage Association, 5.43% 5.10% 01/27/00 1,500,335
1,000,000 Federal Home Loan Bank, 6.173% 5.83% 01/28/00 1,000,217
5,000,000 Federal Home Loan Mortgage Corporation, 6.44% 5.88% 01/28/00 5,001,497
6,000,000 Student Loan Marketing Association, Variable Rate, 5.888%* 5.83% 02/02/00 5,998,528
500,000 Federal Home Loan Bank, 5.53% 6.04% 02/03/00 499,723
500,000 Federal Home Loan Bank, 5.445% 6.04% 02/04/00 499,680
1,000,000 Federal Farm Credit Bank, 6.07% 5.79% 02/07/00 1,000,251
2,000,000 Federal National Mortgage Association, 6.10% 5.79% 02/10/00 2,000,560
350,000 Federal National Mortgage Association, 6.10% 5.84% 02/10/00 350,062
130,000 Federal National Mortgage Association, 6.10% 6.33% 02/10/00 129,950
5,000,000 Student Loan Marketing Association, Variable Rate, 6.113%* 5.79% 02/14/00 4,999,772
300,000 Federal National Mortgage Association, 4.99% 5.81% 02/22/00 299,626
3,000,000 Federal National Mortgage Association, 5.04% 5.32% 02/23/00 2,998,766
3,000,000 Federal Home Loan Bank, 4.995% 5.25% 02/24/00 2,998,855
5,000,000 Federal Home Loan Bank, Variable Rate, 6.163%* 5.82% 02/25/00 4,999,978
1,700,000 Federal Home Loan Bank, 5.00% 5.89% 02/25/00 1,697,205
500,000 Federal Home Loan Bank, 5.05% 6.09% 03/01/00 499,080
2,000,000 Federal Home Loan Bank, 5.08% 5.77% 03/03/00 1,996,985
1,000,000 Federal Home Loan Bank, 5.625% 5.81% 03/03/00 999,548
500,000 Student Loan Marketing Association, 7.50% 5.90% 03/08/00 501,419
5,000,000 Federal Home Loan Bank, 5.16% 5.81% 03/08/00 4,993,409
1,000,000 Federal Home Loan Bank, 5.635% 5.75% 03/09/00 999,661
1,000,000 Federal Home Loan Mortgage Corporation, Variable Rate, 5.00%* 5.85% 03/10/00 998,417
1,250,000 Student Loan Marketing Association, 5.57% 5.78% 03/17/00 1,249,453
1,000,000 Federal Home Loan Bank, Variable Rate, 4.595%* 5.84% 03/22/00 997,093
500,000 Federal Home Loan Bank, Variable Rate, 4.595%* 5.95% 03/22/00 498,542
500,000 Federal Home Loan Bank, Variable Rate, 4.595%* 5.82% 03/22/00 498,614
5,000,000 Federal Home Loan Bank, Variable Rate, 5.913%* 4.95% 03/24/00 5,000,000
2,500,000 Federal National Mortgage Association, 5.60% 5.39% 03/27/00 2,501,156
2,500,000 Federal Home Loan Mortgage Corporation, Variable Rate, 5.963%* 4.86% 04/14/00 2,499,645
1,000,000 Federal Home Loan Bank, 5.68% 5.88% 04/20/00 999,283
750,000 Federal National Mortgage Association, Variable Rate, 5.00%* 5.52% 04/21/00 748,833
2,000,000 Federal National Mortgage Association, Variable Rate, 5.00%* 5.50% 04/21/00 1,997,002
1,000,000 Federal Home Loan Bank, 6.67% 6.00% 04/25/00 1,002,035
5,000,000 Federal Home Loan Bank, Variable Rate, 5.555%* 5.45% 05/11/00 4,997,313
5,000,000 Federal National Mortgage Association, 0.00% 6.08% 05/19/00 4,886,993
3,000,000 Federal Home Loan Bank, 5.625% 5.50% 06/02/00 3,001,478
695,000 Federal Home Loan Bank, 5.25% 6.01% 06/02/00 692,504
1,000,000 Federal Home Loan Bank, 6.24% 6.00% 06/23/00 1,001,030
1,500,000 Federal Farm Credit Bank, 6.67% 6.00% 06/26/00 1,504,577
5,000,000 Student Loan Marketing Association, Variable Rate, 6.063%* 5.62% 06/30/00 5,000,000
1,000,000 Federal Home Loan Bank, 6.20% 5.97% 07/07/00 1,001,062
2,595,000 Federal Home Loan Bank, 5.60% 6.00% 07/10/00 2,589,575
1,000,000 Federal National Mortgage Association, 6.625% 6.01% 07/12/00 1,003,051
2,239,000 Federal Home Loan Mortgage Corporation, 5.505% 6.00% 07/14/00 2,233,128
1,000,000 Federal National Mortgage Association, 5.67% 5.67% 07/21/00 1,000,000
500,000 Federal National Mortgage Association, 5.67% 5.69% 07/21/00 499,957
300,000 Federal Home Loan Bank, 6.055% 6.08% 07/28/00 299,927
1,000,000 Federal Home Loan Bank, 5.57% 5.97% 08/14/00 997,539
2,083,000 Federal National Mortgage Association, 6.36% 6.12% 08/16/00 2,085,775
1,000,000 Federal Home Loan Bank, 5.00% 6.09% 08/18/00 993,336
500,000 Federal Home Loan Bank, 5.00% 6.11% 08/18/00 496,623
1,000,000 Federal Home Loan Bank, 5.60% 6.01% 08/24/00 997,481
1,000,000 Federal Home Loan Bank, 5.525% 6.11% 08/28/00 996,206
1,500,000 Federal Home Loan Bank, 6.175% 6.13% 09/05/00 1,500,371
1,000,000 Federal Home Loan Bank, 5.375% 6.00% 09/08/00 995,814
----------------
TOTAL (cost -- $140,504,081) $140,504,081
----------------
CERTIFICATES OF DEPOSIT -- 13.37%
$ 500,000 Peoples State Bank, Elkader 5.40% 01/06/00 $500,000
250,000 Farmers State Bank, Hawarden 5.85% 01/10/00 250,000
2,000,000 Community First National Bank, Decorah 5.85% 01/11/00 2,000,000
5,000,000 Bankers Trust Company, Des Moines 5.85% 01/13/00 5,000,000
1,000,000 Peoples State Bank, Elkader 5.60% 01/18/00 1,000,000
2,500,000 First National Bank, Ames 5.55% 01/18/00 2,500,000
1,000,000 DeWitt Bank & Trust, DeWitt 5.85% 01/18/00 1,000,000
1,000,000 First American Bank, Ames 5.20% 01/28/00 1,000,000
500,000 Premier Bank, Rock Valley 5.25% 01/28/00 500,000
750,000 Peoples State Bank, Elkader 5.60% 01/31/00 750,000
500,000 Farmers Bank, Hawarden 6.00% 01/31/00 500,000
3,000,000 South Ottumwa Savings Bank, Ottumwa 5.90% 02/18/00 3,000,000
250,000 Ft. Madison Bank & Trust, Ft. Madison 5.20% 02/18/00 250,000
500,000 Union State Bank, Winterset 5.20% 02/22/00 500,000
500,000 American Bank, LeMars 5.15% 02/22/00 500,000
2,000,000 First State Bank, Conrad 6.05% 02/24/00 2,000,000
600,000 First State Bank, Ida Grove 5.90% 02/28/00 600,000
2,000,000 St. Ansgar State Bank, St. Ansgar 5.38% 03/07/00 2,000,000
1,000,000 Hartford-Carlisle Savings Bank, Carlisle 5.50% 03/16/00 1,000,000
1,000,000 Peoples Savings Bank, Elma 5.95% 03/20/00 1,000,000
500,000 Peoples Bank & Trust, Rock Valley 5.38% 03/23/00 500,000
250,000 Citizens Bank, Sac City 5.38% 04/04/00 250,000
500,000 Citizens Bank, Sac City 6.00% 04/05/00 500,000
250,000 Ft. Madison Bank & Trust, Ft. Madison 6.00% 05/22/00 250,000
250,000 Citizens Bank, Sac City 5.75% 07/05/00 250,000
500,000 American Bank, LeMars 6.00% 08/25/00 500,000
500,000 First American Bank, Ames 6.05% 09/20/00 500,000
500,000 St. Ansgar State Bank, St. Ansgar 6.15% 10/17/00 500,000
250,000 First State Bank, Huxley 6.15% 10/17/00 250,000
100,000 Ackley State Bank, Ackley 6.15% 10/17/00 100,000
750,000 State Savings Bank, Baxter 6.15% 10/18/00 750,000
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
500,000 Peoples Bank & Trust, Rock Valley 6.25% 12/14/00 500,000
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TOTAL (cost -- $31,950,000) $31,950,000
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REPURCHASE AGREEMENTS (collateralized by U.S. Govt. securities) -- 17.41%
$20,797,000 Merrill Lynch, Repurchase Agreement 3.00% 01/03/00 $20,797,000
20,797,000 SBC Warburg Dillon Read, Repurchase Agreement 2.75% 01/03/00 20,797,000
----------------
TOTAL (cost -- $41,594,000) $41,594,000
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TOTAL INVESTMENTS -- 99.28% (cost -- $237,190,040) $237,190,040
EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES -- .72%
(Includes $48,300 payable to IMG and $1,013,761
dividends payable to unitholders) $1,732,079
----------------
NET ASSETS -- 100%
Applicable to 238,922,119 outstanding units $238,922,119
================
NET ASSET VALUE:
Offering and redemption price per unit ($238,922,119
divided by 238,922,119 units outstanding) $1.00
================
See accompanying notes to financial statements.
*Denotes floating rate investment with interest rate as of December 31, 1999
</TABLE>
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IOWA SCHOOLS JOINT INVESTMENT TRUST
DIRECT GOVERNMENT OBLIGATION PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
(Showing Percentage of Net Assets)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield at
Time of Amortized
Par Value Description Purchase Due Date Cost
- --------- ----------- -------- -------- ----
<S> <C> <C> <C> <C>
COUPON SECURITIES -- 11.35%
$1,000,000 Housing Urban Development, 9.10% 5.92% 08/01/00 $1,017,695
2,850,000 Housing Urban Development, 6.59% 5.92% 08/01/00 2,860,413
----------------
TOTAL (cost -- $3,878,108) $3,878,108
----------------
REPURCHASE AGREEMENTS (collateralized by U.S. Govt. securities) -- 88.75%
$30,334,000 SBC Warburg Dillon Read, Repurchase Agreement 0.00% 01/00/00 $30,334,000
----------------
TOTAL (cost -- $30,334,000) $30,334,000
----------------
TOTAL INVESTMENTS -- 100.10% (cost -- $34,212,108) $34,212,108
EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES -- (.10%)
(Includes $4,335 payable to IMG and $135,596
dividends payable to unitholders) ($33,440)
----------------
NET ASSETS -- 100%
Applicable to 34,178,668 outstanding units $34,178,668
================
NET ASSET VALUE:
Offering and redemption price per unit ($34,178,668
divided by 34,178,668 units outstanding) $1.00
================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
IOWA SCHOOLS JOINT INVESTMENT TRUST
STATEMENT OF OPERATIONS
FOR THE PERIOD JULY 1, 1999 TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
DIVERSIFIED DIRECT GOVERNMENT
PORTFOLIO OBLIGATION PORTFOLIO
------------ --------------------
INVESTMENT INCOME:
Interest $5,054,479 $920,217
============ ====================
EXPENSES:
Investment advisory and
program support fees $230,544 $26,507
Custody and administrative fees 207,826 57,432
Distribution fees 94,310 17,671
Other fees and expenses 28,294 5,302
------------ --------------------
Total Expenses 560,974 106,912
------------ --------------------
NET INVESTMENT INCOME $4,493,505 $813,305
============ ====================
<PAGE>
IOWA SCHOOLS JOINT INVESTMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
For the period July 1, 1999 to December 31, 1999
- --------------------------------------------------------------------------------
DIVERSIFIED DIRECT GOVERNMENT
PORTFOLIO OBLIGATION PORTFOLIO
------------ --------------------
From Investment Activities:
Net investment income
distributed to unitholders $4,493,505 $813,305
============ ====================
From Unit Transactions:
(at constant net asset value of $1
per unit)
Units sold $558,474,897 $20,744,521
Units issued in reinvestment
of dividends from net
investment income 4,493,505 813,305
Units redeemed (563,235,536) (19,409,690)
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Net increase (decrease) in net assets
derived from unit transactions (267,134) 2,148,136
Net assets at beginning of period 239,189,253 32,030,532
------------ --------------------
Net assets at end of period $238,922,119 $34,178,668
============ ====================
See accompanying notes to financial statements.
<PAGE>
IOWA SCHOOLS JOINT INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A UNIT PORTFOLIO
OUTSTANDING THROUGH EACH PERIOD*
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<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
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<S> <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
Net Investment Income 0.047 0.047 0.051 0.049 0.053
Dividends Distributed (0.047) (0.047) (0.051) (0.049) (0.053)
--------------------------------------------------------
Net Asset Value,
End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Total Return 4.75% 4.74% 5.08% 4.85% 5.31%
Ratio of Expenses
to Average Net Assets 0.60% 0.60% 0.60% 0.60% 0.59%
Ratio of Net Income to
Average Net Assets 4.75% 4.74% 5.08% 4.85% 5.31%
Net Assets,
End of Period
(000 Omitted) $238,922 $208,205 $174,215 $161,217 $166,018
1999 1998 1997 1996 1995
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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
Net Investment Income 0.046 0.046 0.050 0.047 0.052
Dividends Distributed (0.046) (0.046) (0.050) (0.047) (0.052)
--------------------------------------------------------
Net Asset Value,
End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Total Return 4.60% 4.65% 4.99% 4.68% 5.21%
Ratio of Expenses
to Average Net Assets 0.60% 0.61% 0.60% 0.60% .059%
Ratio of Net Income to
Average Net Assets 4.60% 4.65% 4.99% 4.68% 5.21%
Net Assets,
End of Period
(000 Omitted) $34,179 $33,755 $31,034 $25,781 $34,801
</TABLE>
*For the six month period ending December 31, annualized.
See accompanying notes to financial statements.
<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 investment programs, including the Diversified Portfolio and
the Direct Government Obligation (DGO) Portfolio. The accompanying financial
statements include activities of the Diversified and DGO 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
schools under Iowa law. Norwest Bank Iowa, N.A. serves as the Administrator and
Custodian, and Investors Management Group serves as the Investment Advisor 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.
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.
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 December 31, 1999 the securities purchased under overnight
agreements to resell were collateralized by government and government agency
securities with market values of $42,429,588 and $30,941,743 for the Diversified
Portfolio and the Direct Government Obligation Portfolio, respectively.
<PAGE>
IOWA SCHOOLS JOINT INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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.
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. Dividends from 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
.100 percent of the average daily net asset value of the Diversified Portfolio
for program support fees. For the six month period ended December 31, 1999, the
Diversified Portfolio and the Direct Government Obligation Portfolio paid
$230,544 and $26,507, 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 administrative services; 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 six month
period ended December 31, 1999, the Diversified Portfolio and the Direct
Government Obligation Portfolio paid $207,826 and $57,432, respectively, to
Norwest for services provided. Under a distribution plan, the sponsoring
association receives 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 Portfolio and the Direct Government Obligation Portfolio paid
$94,310 and $17,671, 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 $7,189,281,374 and $4,224,402,235,
respectively, for the six month period ended December 31, 1999. Proceeds from
maturities of securities for the Diversified Portfolio and Direct Government
Obligation Portfolio aggregated $7,189,355,407 and $4,221,640,000, respectively,
for the six month period ended December 31, 1999.
<PAGE>
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<PAGE>
BOARD OF TRUSTEES
DEAN BORG, CHAIR, Mt. Vernon
RICHARD VANDE KIEFT, VICE CHAIRPERSON, Cedar Falls
GARY D. BENGSTEN, TREASURER, Carroll
VERONICA STALKER, TRUSTEE, Waukee
DENNIS JETER, TRUSTEE, Murray
DON WILLIAMS, TRUSTEE, Villisca
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:
Brick, Gentry, Bowers, et al
550 39th Street, Suite 200
Des Moines, IA 50304
INDEPENDENT AUDITORS:
KPMG 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
