|
|
|
|
|
|
|
|
|
|
Previous: VAN KAMPEN AMERICAN CAPITAL EQUITY OPPORTUNITY TRUST SER 23, S-6EL24, 1995-11-06 |
Next: STAGECOACH TRUST, N-30D, 1995-11-06 |
<PAGE>
- --------------------
LIFEPATH
- --------------------
FUNDS
- --------------------
SEMI-ANNUAL
- --------------------
REPORT
- --------------------
LifePath 2000 Fund
LifePath 2010 Fund
LifePath 2020 Fund
LifePath 2030 Fund
LifePath 2040 Fund
Retail Class
AUGUST 31, 1995
<PAGE>
TABLE OF CONTENTS
LIFEPATH FUNDS
<TABLE>
<S> <C>
Letter to Shareholders..................................... 1
Investment Adviser Discussion.............................. 2
STAGECOACH TRUST
Statement of Assets and Liabilities...................... 6
Statement of Operations.................................. 8
Statements of Changes in Net Assets...................... 10
Financial Highlights..................................... 14
Notes to the Financial Statements........................ 19
MASTER INVESTMENT PORTFOLIO
PORTFOLIOS OF INVESTMENTS
LifePath Master Series................................... 24
MASTER INVESTMENT PORTFOLIO
Statement of Assets and Liabilities...................... 84
Statement of Operations.................................. 86
Statements of Changes in Net Assets...................... 88
Notes to the Financial Statements........................ 93
</TABLE>
<PAGE>
TO OUR SHAREHOLDERS:
The six-month period ended August 31, 1995, was an exciting time to be a
LifePath Funds investor. The period showed once more how short-term market
behavior is difficult -- even impossible -- to predict. This is why we believe a
long-term investment philosophy consistent with your personal objectives is your
best strategy for investing.
The United States stock market, as measured by the Standard & Poor's 500
Index, was up 16.81% for the period -- a handsome six-month increase by almost
any standard. This followed a lackluster 1994 in which the Index gained only
1.31% for the entire year. The lesson: long-term investors who stay invested
will be positioned for rallies when they occur.
In the domestic bond market, the Lehman Brothers Aggregate Bond Index
increased by a remarkable 7.79% during the same period. This is one of the best
six-month increases since the Index began in 1976 and followed an unusually
depressed 1994 in which the Index fell 2.92% for the full year. Again, long-term
investors who stay the course can take advantage of bond market rallies to
compensate for periods of disappointing performance.
The volatile financial climate we have seen so far in 1995 is not
extraordinary. In fact, most markets usually behave in surprising and
unpredictable ways. That's why we believe you should not focus just on
short-term results. Instead, you should view the long-term performance potential
of your investments in the context of your personal financial circumstances.
You must evaluate your own personal situation. Do you have liquidity
requirements? What are your financial goals? What will your need for money be in
the future? When will you need it? Analyze your objectives. Maintain a
diversified portfolio and a long-term perspective that fits your goals. And,
invest in what you understand.
The following pages will help you better understand your investment in the
Stagecoach LifePath Funds. They contain portfolio managers' comments, Fund
performances, portfolio holdings, financial statements and other important
information.
We look forward to continuing to help you pursue your financial goals in the
years ahead.
STAGECOACH FUNDS AUGUST 31, 1995
"Standard & Poor's-Registered Trademark-," "S&P-Registered Trademark-" and
"500-Registered Trademark-" are registered trademarks of McGraw-Hill, Inc. The
S&P 500 Index is an unmanaged index of 500 widely held common stocks,
representing industrial, financial, utility and transportation companies listed
on national exchanges. The Lehman Brothers Aggregate Bond Index is an unmanaged
index composed of bonds, mortgage- backed securities, and asset-backed
securities.
1
<PAGE>
LIFEPATH FUNDS
INVESTMENT ADVISER DISCUSSION
Q: WHAT WAS THE PERFORMANCE OF THE LIFEPATH FUNDS-RETAIL CLASS FOR THE SIX-MONTH
PERIOD ENDED AUGUST 31, 1995?
A: The LifePath Funds-Retail Class total returns (after fees and expenses) and
distributions per share were as follows:
<TABLE>
<CAPTION>
TOTAL DISTRIBUTION
RETURN PER SHARE
<S> <C> <C>
- --------------------------------------------
LifePath 2000 7.97% $0.22
LifePath 2010 11.00% $0.19
LifePath 2020 12.68% $0.15
LifePath 2030 14.51% $0.13
LifePath 2040 15.33% $0.09
</TABLE>
Q: WHAT FACTORS AFFECTED THE FUNDS' PERFORMANCE?
A: Falling interest rates and strong domestic corporate earnings have been the
major factors behind the strong U.S. stock and bond market rallies seen in the
first eight months of 1995. The Federal Reserve lowered the Federal Funds rate
to 5.75% from 6.00% on July 6, 1995. This was the first rate decrease after a
series of six rate increases beginning in February of 1994. On August 31, 1995
the yield on 30-year Treasury bonds had dropped to 6.72% from 7.92% on December
31, 1994. Declining rates benefit the Funds because the prices of bonds,
including those owned by the Funds, generally rise when interest rates fall. The
Funds also benefited from rising stock prices following a continued stream of
strong earnings reports.
Q: HOW HAVE THE FUNDS PERFORMED RELATIVE TO THE MARKETS?
A: The LifePath Funds allocate assets among stocks, bonds and money market
instruments based on each Fund's investment horizon. Under this investment
philosophy, the Funds performed as we would have expected in light of the
performance of the securities markets.
Those Funds with longer investment horizons (e.g., LifePath 2040) allocate a
higher portion of their assets to investments with higher potential returns and
risk, such as domestic and international stocks. The LifePath Funds with longer
horizons performed more like the domestic stock market which rose 16.81% as
measured by the Standard and Poor's 500 Index for the six months ended August
31, 1995.
The shorter a Fund's investment horizon (e.g., LifePath 2000), the greater the
allocation of its investments to
2
<PAGE>
LIFEPATH FUNDS (CONTINUED)
lower-risk assets such as money market instruments and bonds. The performance of
the shorter Funds resembled that of the bond market,
which rose 7.79% as measured by the Lehman Brothers Aggregate Bond Index for the
six-month period ended August 31, 1995.
Q: WHAT IS THE CURRENT ASSET MIX OF THE FUNDS?
A: As of August 31, 1995, the asset mix for each of the Funds was as follows:
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH LIFEPATH LIFEPATH
2000 2010 2020 2030 2040
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
STOCKS
Large Capitalization -- Value 7.0% 17.2% 22.1% 25.8% 27.8%
Large Capitalization -- Growth 3.2 16.0 23.2 27.7 36.5
Medium Capitalization -- Value 3.1 3.0 3.7 4.5 5.6
Medium Capitalization -- Growth 2.9 3.0 3.4 4.4 5.8
Small Capitalization -- Value 0.2 0.0 0.3 0.2 0.1
Small Capitalization -- Growth 0.2 0.1 0.4 0.3 0.1
Micro Capitalization 0.0 0.0 0.0 0.0 0.0
Utilities 1.0 0.9 1.0 1.0 0.7
Japan 1.7 2.5 3.8 4.4 5.2
International except Japan 3.4 8.2 10.9 13.2 14.5
BONDS
Long-Term Governments 3.7 2.7 5.9 11.4 2.7
Long-Term Corporates 0 0 0 0 0
Intermediate-Term Governments 55.2 39.1 20.6 3.9 0.2
Intermediate-Term Corporates 0 0 0 0 0
Mortgage-backed 0 0 0 0 0
Foreign 0 0 0 0 0
MONEY MARKETS
U.S. Treasury Bills 18.4 7.3 4.7 3.2 0.8
----- ----- ----- ----- -----
TOTAL 100.0% 100.0% 100.0% 100.0% 100.0%
</TABLE>
Any differences between the percentages above and the percentages in the
Portfolios of Investments are due to unsettled trades and allocations to large
cap stocks through S&P 500 futures contracts.
3
<PAGE>
LIFEPATH FUNDS (CONTINUED)
Q: WHAT EFFECT HAVE LAST YEAR'S CHANGES HAD ON THE FUNDS?
A: Last September, we improved the models for the LifePath Funds. Over the last
six months, this has increased the concentration of equities in the Funds,
particularly in the LifePath 2010, 2020, and 2030 Funds. The increased exposure
to stocks has paid off for investors because equities have outperformed bonds
during this period.
Q: WHY WAS THE STRATEGY CHANGED TO ALLOW UP TO 20% OF THE PORTFOLIO TO BE
INVESTED IN INTERNATIONAL EQUITIES?
A: During the last six months, we have increased the Funds' international equity
holdings partly by trading domestic stocks for the issues of companies that do
most of their business overseas. We believe that diversifying our equity
portfolio internationally will ultimately lower risk by making the Funds less
vulnerable to possible downturns in the domestic economy. We believe the growth
potential offered by international issues is especially appropriate for the
longer-term LifePath Funds.
Q: WHAT IS THE ADVANTAGE OF USING A MODEL RATHER THAN TRADITIONAL
ACTIVE-MANAGEMENT METHODS?
A: A key to successful investing is managing the interaction between two of the
most significant types of risk. The SHORT-TERM RISK of losing money is the risk
most people think of first. Short-term risk can be minimized by holding money
market investments. But at least as important, and often a larger risk for
investors with long investment horizons, is the LONG-TERM RISK of outliving your
assets. This can happen when the returns on your investments do not outpace
inflation. Avoiding long-term risk calls for investing more heavily in stocks
where the short-term volatility is balanced by a greater reward potential over
time.
We believe these short- and long-term risks are best measured and managed using
the quantitative techniques found in our sophisticated computer models. The
models constantly monitor risk and recommend asset mixes to maximize expected
return for desired levels of risk. Models, unlike people, are not driven by
emotions.
4
<PAGE>
LIFEPATH FUNDS (CONTINUED)
Instead, our models allow us to maintain a disciplined approach to the risks and
rewards of the securities markets.
Q: HOW WILL THE SALE OF WELLS FARGO NIKKO INVESTMENT ADVISORS AFFECT THE FUNDS?
A: The sale is not expected to affect the investment objective or overall
investment strategy of the Funds. The same team of highly qualified experts will
continue to refine and tune the models. Wells Fargo Bank and its affiliates will
continue to provide shareholder services to the Funds. Shareholders will be
mailed more detailed information later this year.
Wells Fargo Bank and the Nikko Securities Co., Ltd., have entered into an
agreement to sell their partnership interests in Wells Fargo Nikko Investment
Advisors ("WFNIA") to Barclays Bank PLC or its affiliates (collectively,
"Barclays"). Barclays is one of the oldest and largest financial institutions in
the world and had $264 billion in total assets as of June 30, 1995. Barclays
intends to reorganize WFNIA into an entity that will be named BZW Global
Investors. Barclays and its affiliates have considerable experience in managing
fund assets and had approximately $35 billion in quantitative fund assets under
management as of June 30, 1995.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
AUGUST 31, 1995
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH
2000 2010 2020
FUND FUND FUND
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
In corresponding Master
Series, at market value
(Note 1) $80,305,241 $71,555,514 $118,280,980
Receivables:
Dividends and interest 663,042 494,997 650,792
Fund shares sold 354,143 180,600 199,424
TOTAL ASSETS 81,322,426 72,231,111 119,131,196
LIABILITIES
PAYABLES:
Fund shares redeemed 17,082 0 0
Due to sponsor and
distributor 41,308 30,622 56,827
Due to Wells Fargo Bank 39,409 34,661 57,488
TOTAL LIABILITIES 97,799 65,283 114,315
TOTAL NET ASSETS
$81,224,627 $72,165,828 $119,016,881
NET ASSETS CONSIST OF:
Paid-in capital - Retail
class $65,541,717 $42,984,917 $ 82,915,994
Paid-in capital -
Institutional class 11,214,281 23,166,740 22,917,318
Undistributed net
investment income 582,325 429,714 536,476
Undistributed net realized
gain on investment 961,249 941,405 2,339,044
Net unrealized
appreciation of
investments 2,925,055 4,643,052 10,308,049
TOTAL NET ASSETS $81,224,627 $72,165,828 $119,016,881
COMPUTATION OF NET ASSET
VALUE AND OFFERING PRICE
PER SHARE
Net assets - Retail class $69,339,792 $47,117,202 $ 93,331,506
Shares outstanding - Retail
class 6,614,764 4,325,879 8,258,513
Net asset value and offering
price per share - Retail
class $10.48 $10.89 $11.30
Net assets - Institutional
class $11,884,835 $25,048,626 $ 25,685,375
Shares outstanding -
Institutional class 1,130,400 2,289,137 2,272,713
Net asset value and offering
price per share -
Institutional class $10.51 $10.94 $11.30
- ----------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
6
<PAGE>
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
2030 2040
FUND FUND
<S> <C> <C>
- ----------------------------------------------------------------
ASSETS
INVESTMENTS:
In corresponding Master
Series, at market value
(Note 1) $79,590,189 $118,025,705
Receivables:
Dividends and interest 343,798 394,085
Fund shares sold 329,803 309,715
TOTAL ASSETS 80,263,790 118,729,505
LIABILITIES
PAYABLES:
Fund shares redeemed 0 0
Due to sponsor and
distributor 37,983 56,773
Due to Wells Fargo Bank 38,488 55,747
TOTAL LIABILITIES 76,471 112,520
TOTAL NET ASSETS
$80,187,319 $118,616,985
NET ASSETS CONSIST OF:
Paid-in capital - Retail
class $55,038,939 $ 85,131,619
Paid-in capital -
Institutional class 15,282,055 18,289,381
Undistributed net
investment income 267,328 281,565
Undistributed net realized
gain on investment 1,937,166 3,836,129
Net unrealized
appreciation of
investments 7,661,831 11,078,291
TOTAL NET ASSETS $80,187,319 $118,616,985
COMPUTATION OF NET ASSET
VALUE AND OFFERING PRICE
PER SHARE
Net assets - Retail class $62,868,740 $ 97,852,316
Shares outstanding - Retail
class 5,462,978 8,252,829
Net asset value and offering
price per share - Retail
class $11.51 $11.86
Net assets - Institutional
class $17,318,579 $ 20,764,669
Shares outstanding -
Institutional class 1,501,931 1,749,329
Net asset value and offering
price per share -
Institutional class $11.53 $11.87
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
7
<PAGE>
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED AUGUST 31, 1995
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH
2000 2010 2020
FUND FUND FUND
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
NET INVESTMENT INCOME
ALLOCATED FROM MASTER
SERIES
Dividends $ 231,180 $ 400,633 $ 885,515
Interest 1,776,466 1,063,247 1,174,246
Expenses (194,684) (164,432) (277,263)
NET INVESTMENT INCOME
ALLOCATED FROM MASTER
SERIES 1,812,962 1,299,448 1,782,498
EXPENSES (NOTE 2)
Administration fees 35,554 30,000 50,529
Shareholder servicing fees 71,106 59,998 101,057
Transfer agency fees 35,554 30,000 50,529
Distribution fees - Retail
class 76,930 51,971 100,017
TOTAL EXPENSES 219,144 171,969 302,132
NET INVESTMENT INCOME 1,593,818 1,127,479 1,480,366
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS ALLOCATED
FROM MASTER SERIES
Net realized gain on sale
of investments 846,611 857,989 2,307,303
Net change in unrealized
appreciation of
investments 2,879,746 4,078,107 7,944,648
NET GAIN ON INVESTMENTS 3,726,357 4,936,096 10,251,951
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $5,320,175 $6,063,575 $11,732,317
- ----------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
8
<PAGE>
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
2030 2040
FUND FUND
<S> <C> <C>
- ----------------------------------------------------------------
NET INVESTMENT INCOME
ALLOCATED FROM MASTER
SERIES
Dividends $ 672,137 $ 1,068,055
Interest 478,828 263,826
Expenses (180,302) (253,974)
NET INVESTMENT INCOME
ALLOCATED FROM MASTER
SERIES 970,663 1,077,907
EXPENSES (NOTE 2)
Administration fees 32,828 46,181
Shareholder servicing fees 65,656 92,359
Transfer agency fees 32,828 46,181
Distribution fees - Retail
class 64,888 95,815
TOTAL EXPENSES 196,200 280,536
NET INVESTMENT INCOME 774,463 797,371
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS ALLOCATED
FROM MASTER SERIES
Net realized gain on sale
of investments 2,120,300 3,797,359
Net change in unrealized
appreciation of
investments 5,611,723 7,949,143
NET GAIN ON INVESTMENTS 7,732,023 11,746,502
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $8,506,486 $12,543,873
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
9
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LIFEPATH 2000 FUND
----------------------------------
(UNAUDITED) FOR THE
FOR THE YEAR ENDED
SIX MONTHS ENDED FEBRUARY 28,
AUGUST 31, 1995 1995
<S> <C> <C>
- ----------------------------------------------------------------
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $ 1,593,818 $ 1,861,823
Net realized gain (loss)
on sale of investments 846,611 167,080
Net change in unrealized
appreciation of
investments 2,879,746 45,309
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 5,320,175 2,074,212
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income
Retail class (1,289,510) (1,272,285)
Institutional class (194,004) (117,516)
From net realized gain
(loss) on sales of
investments
Retail class 0 (47,137)
Institutional class 0 (5,304)
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold
- Retail class 25,039,389 79,821,113
Reinvestment of dividends
- Retail class 1,206,131 1,242,642
Cost of shares redeemed -
Retail class (14,833,448) (26,934,112)
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS - RETAIL
CLASS 11,412,072 54,129,643
Proceeds from shares sold
- Institutional class 5,854,274 8,826,786
Reinvestment of dividends
- Institutional class 194,005 122,820
Cost of shares redeemed -
Institutional class (2,188,526) (1,605,078)
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
INSTITUTIONAL CLASS 3,859,753 7,344,528
INCREASE IN NET ASSETS 19,108,486 62,106,141
NET ASSETS:
Beginning net assets 62,116,141 10,000
ENDING NET ASSETS $81,224,627 $62,116,141
SHARES ISSUED AND REDEEMED:
Shares sold - Retail class 2,447,030 8,149,639
Shares issued in
reinvestment of
dividends - Retail class 119,357 129,306
Shares redeemed - Retail
class (1,454,831) (2,775,736)
NET INCREASE IN SHARES
OUTSTANDING - RETAIL CLASS 1,111,556 5,503,209
Shares sold -
Institutional class 570,227 905,140
Shares issued in
reinvestment of
dividends -
Institutional class 19,122 12,783
Shares redeemed -
Institutional class (213,407) (164,464)
NET INCREASE IN SHARES
OUTSTANDING - INSTITUTIONAL
CLASS 375,942 753,459
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
<PAGE>
<TABLE>
<CAPTION>
LIFEPATH 2010 FUND LIFEPATH 2020 FUND
---------------------------------- ----------------------------------
(UNAUDITED) FOR THE (UNAUDITED) FOR THE
FOR THE YEAR ENDED FOR THE YEAR ENDED
SIX MONTHS ENDED FEBRUARY 28, SIX MONTHS ENDED FEBRUARY 28,
AUGUST 31, 1995 1995 AUGUST 31, 1995 1995
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $ 1,127,479 $ 1,293,590 $ 1,480,366 $ 1,710,504
Net realized gain (loss)
on sale of investments 857,989 298,374 2,307,303 31,741
Net change in unrealized
appreciation of
investments 4,078,107 564,945 7,944,648 2,363,401
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 6,063,575 2,156,909 11,732,317 4,105,646
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income
Retail class (719,904) (792,655) (1,069,829) (1,059,929)
Institutional class (291,974) (186,822) (290,402) (234,233)
From net realized gain
(loss) on sales of
investments
Retail class 0 (164,665) 0 0
Institutional class 0 (50,293) 0 0
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold
- Retail class 13,390,954 44,016,587 29,443,131 76,248,722
Reinvestment of dividends
- Retail class 706,019 938,718 1,056,694 1,036,090
Cost of shares redeemed -
Retail class (7,248,585) (8,818,777) (11,418,397) (13,450,247)
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS - RETAIL
CLASS 6,848,388 36,136,528 19,081,428 63,834,565
Proceeds from shares sold
- Institutional class 14,264,385 14,259,774 11,040,040 19,610,472
Reinvestment of dividends
- Institutional class 291,974 237,115 290,402 234,233
Cost of shares redeemed -
Institutional class (4,082,172) (1,814,335) (4,420,587) (3,847,242)
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
INSTITUTIONAL CLASS 10,474,187 12,682,554 6,909,855 15,997,463
INCREASE IN NET ASSETS 22,374,272 49,781,556 36,363,369 82,643,512
NET ASSETS:
Beginning net assets 49,791,556 10,000 82,653,512 10,000
ENDING NET ASSETS $72,165,828 $49,791,556 $119,016,881 $82,653,512
SHARES ISSUED AND REDEEMED:
Shares sold - Retail class 1,274,137 4,487,768 2,723,538 7,760,327
Shares issued in
reinvestment of
dividends - Retail class 68,203 97,829 99,122 107,008
Shares redeemed - Retail
class (695,452) (906,606) (1,058,158) (1,373,325)
NET INCREASE IN SHARES
OUTSTANDING - RETAIL CLASS 646,888 3,678,991 1,764,502 6,494,010
Shares sold -
Institutional class 1,344,589 1,459,857 1,024,193 2,005,382
Shares issued in
reinvestment of
dividends -
Institutional class 28,017 24,706 27,230 24,204
Shares redeemed -
Institutional class (383,009) (186,023) (413,200) (396,096)
NET INCREASE IN SHARES
OUTSTANDING - INSTITUTIONAL
CLASS 989,597 1,298,540 638,223 1,633,490
- ----------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
11
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LIFEPATH 2030 FUND
----------------------------------
(UNAUDITED) FOR THE
FOR THE YEAR ENDED
SIX MONTHS ENDED FEBRUARY 28,
AUGUST 31, 1995 1995
<S> <C> <C>
- ----------------------------------------------------------------
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $ 774,463 $ 974,574
Net realized gain (loss)
on sale of investments 2,120,300 (183,134)
Net change in unrealized
appreciation of
investments 5,611,723 2,050,109
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 8,506,486 2,841,549
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income
Retail class (573,437) (626,319)
Institutional class (155,986) (125,966)
From net realized gain
(loss) on sales of
investments
Retail class 0 0
Institutional class 0 0
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold
- Retail class 20,979,712 46,409,294
Reinvestment of dividends
- Retail class 568,328 620,208
Cost of shares redeemed -
Retail class (5,978,535) (7,560,069)
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS - RETAIL
CLASS 15,569,505 39,469,433
Proceeds from shares sold
- Institutional class 8,122,067 10,945,015
Reinvestment of dividends
- Institutional class 155,987 125,966
Cost of shares redeemed -
Institutional class (2,272,241) (1,804,740)
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
INSTITUTIONAL CLASS 6,005,813 9,266,241
INCREASE IN NET ASSETS 29,352,381 50,824,938
NET ASSETS:
Beginning net assets 50,834,938 10,000
ENDING NET ASSETS $80,187,319 $50,834,938
SHARES ISSUED AND REDEEMED:
Shares sold - Retail class 1,913,455 4,756,966
Shares issued in
reinvestment of
dividends - Retail class 52,755 64,274
Shares redeemed - Retail
class (547,849) (776,623)
NET INCREASE IN SHARES
OUTSTANDING - RETAIL CLASS 1,418,361 4,044,617
Shares sold -
Institutional class 743,468 1,121,285
Shares issued in
reinvestment of
dividends -
Institutional class 14,419 13,083
Shares redeemed -
Institutional class (206,555) (184,769)
NET INCREASE IN SHARES
OUTSTANDING - INSTITUTIONAL
CLASS 551,332 949,599
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
12
<PAGE>
<TABLE>
<CAPTION>
LIFEPATH 2040 FUND
----------------------------------
(UNAUDITED) FOR THE
FOR THE YEAR ENDED
SIX MONTHS ENDED FEBRUARY 28,
AUGUST 31, 1995 1995
<S> <C> <C>
- ----------------------------------------------------------------
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $ 797,371 $ 828,402
Net realized gain (loss)
on sale of investments 3,797,359 38,771
Net change in unrealized
appreciation of
investments 7,949,143 3,129,146
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 12,543,873 3,996,319
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income
Retail class (600,763) (515,015)
Institutional class (127,691) (100,738)
From net realized gain
(loss) on sales of
investments
Retail class 0 0
Institutional class 0 0
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold
- Retail class 43,481,496 63,522,813
Reinvestment of dividends
- Retail class 611,139 514,110
Cost of shares redeemed -
Retail class (12,792,413) (10,205,526)
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS - RETAIL
CLASS 31,300,222 53,831,397
Proceeds from shares sold
- Institutional class 11,989,602 11,844,340
Reinvestment of dividends
- Institutional class 127,690 100,738
Cost of shares redeemed -
Institutional class (3,328,540) (2,454,449)
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
INSTITUTIONAL CLASS 8,788,752 9,490,629
INCREASE IN NET ASSETS 51,904,393 66,702,592
NET ASSETS:
Beginning net assets 66,712,592 10,000
ENDING NET ASSETS $118,616,985 $66,712,592
SHARES ISSUED AND REDEEMED:
Shares sold - Retail class 3,867,718 6,450,959
Shares issued in
reinvestment of
dividends - Retail class 55,214 52,581
Shares redeemed - Retail
class (1,141,816) (1,031,827)
NET INCREASE IN SHARES
OUTSTANDING - RETAIL CLASS 2,781,116 5,471,713
Shares sold -
Institutional class 1,070,018 1,198,550
Shares issued in
reinvestment of
dividends -
Institutional class 11,496 10,318
Shares redeemed -
Institutional class (293,852) (248,200)
NET INCREASE IN SHARES
OUTSTANDING - INSTITUTIONAL
CLASS 787,662 960,668
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
13
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LIFEPATH 2000 FUND
--------------------------------------------------
INSTITUTIONAL CLASS RETAIL CLASS
------------------------ ------------------------
(UNAUDITED) YEAR (UNAUDITED) YEAR
SIX MONTHS ENDED SIX MONTHS ENDED
ENDED FEBRUARY ENDED FEBRUARY
AUGUST 31, 28, AUGUST 31, 28,
1995 1995 1995 1995
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.94 $10.00 $ 9.92 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.22 0.35 0.22 0.34
Net realized and unrealized gain/(loss) on
investments 0.57 (0.12) 0.56 (0.14)
TOTAL FROM INVESTMENT OPERATIONS 0.79 0.23 0.78 0.20
LESS DISTRIBUTIONS:
Dividends from net investment income (0.22) (0.28) (0.22) (0.27)
Distributions from net realized capital gains 0.00 (0.01) 0.00 (0.01)
TOTAL FROM DISTRIBUTIONS (0.22) (0.29) (0.22) (0.28)
NET ASSET VALUE, END OF PERIOD $10.51 $ 9.94 $10.48 $ 9.92
TOTAL RETURN (NOT ANNUALIZED) 8.04% 2.38% 7.97% 2.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $11,885 $7,499 $69,340 $54,617
Number of shares outstanding, end of period
(000) 1,130 754 6,615 5,503
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets(1) 0.95% 0.95% 1.20% 1.20%
Ratio of net investment income to average net
assets(1) 4.69% 4.89% 4.44% 4.62%
Portfolio turnover(2) - - - -
- ----------------------------------------------------------------------------------------------------
(1) This ratio includes expenses charged to the
Master Series.
(2) The Funds invest all of their assets in the
corresponding Master Series, hence no
securities-related activity.
</TABLE>
14
<PAGE>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LIFEPATH 2010 FUND
------------------------------------------------------
INSTITUTIONAL CLASS RETAIL CLASS
-------------------------- --------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
AUGUST 31, FEBRUARY 28, AUGUST 31, FEBRUARY 28,
1995 1995 1995 1995
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $10.02 $10.00 $ 9.99 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.19 0.33 0.19 0.34
Net realized and
unrealized gain/(loss)
on investments 0.92 0.01 0.90 (0.02)
TOTAL FROM INVESTMENT
OPERATIONS 1.10 0.34 1.09 0.32
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.19) (0.27) (0.19) (0.28)
Distributions from net
realized capital gains 0.00 (0.05) 0.00 (0.05)
TOTAL FROM DISTRIBUTIONS (0.19) (0.32) (0.19) (0.33)
NET ASSET VALUE, END OF
PERIOD $10.94 $10.02 $10.89 $9.99
TOTAL RETURN (NOT
ANNUALIZED) 11.17% 3.53% 11.00% 3.31%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000) $25,049 $13,028 $47,117 $36,764
Number of shares
outstanding, end of
period (000) 2,289 1,300 4,326 3,679
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets(1) 0.95% 0.95% 1.20% 1.20%
Ratio of net investment
income to average net
assets(1) 3.92% 4.61% 3.67% 4.40%
Portfolio turnover(2) - - - -
- ------------------------------------------------------------------------------------
(1) This ratio includes
expenses charged to the
Master Series.
(2) The Funds invest all of
their assets in the
corresponding Master
Series, hence no
securities-related
activity.
<CAPTION>
LIFEPATH 2020 FUND
------------------------------------------------------
INSTITUTIONAL CLASS RETAIL CLASS
-------------------------- --------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
AUGUST 31, FEBRUARY 28, AUGUST 31, FEBRUARY 28,
1995 1995 1995 1995
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $10.17 $10.00 $10.17 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.16 0.30 0.15 0.28
Net realized and
unrealized gain/(loss)
on investments 1.13 0.12 1.13 0.12
TOTAL FROM INVESTMENT
OPERATIONS 1.29 0.42 1.28 0.40
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.16) (0.25) (0.15) (0.23)
Distributions from net
realized capital gains 0.00 0.00 0.00 0.00
TOTAL FROM DISTRIBUTIONS (0.16) (0.25) (0.15) (0.23)
NET ASSET VALUE, END OF
PERIOD $11.30 $10.17 $11.30 $10.17
TOTAL RETURN (NOT
ANNUALIZED) 12.79% 4.39% 12.68% 4.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000) $25,685 $16,618 $93,332 $66,036
Number of shares
outstanding, end of
period (000) 2,273 1,634 8,259 6,494
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets(1) 0.95% 0.95% 1.20% 1.20%
Ratio of net investment
income to average net
assets(1) 3.12% 3.88% 2.87% 3.64%
Portfolio turnover(2) - - - -
- ------------------------------------------------------------------------------------
(1) This ratio includes
expenses charged to the
Master Series.
(2) The Funds invest all of
their assets in the
corresponding Master
Series, hence no
securities-related
activity.
</TABLE>
15
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LIFEPATH 2030 FUND
--------------------------------------------------
INSTITUTIONAL CLASS RETAIL CLASS
------------------------ ------------------------
(UNAUDITED) YEAR (UNAUDITED) YEAR
SIX MONTHS ENDED SIX MONTHS ENDED
ENDED FEBRUARY ENDED FEBRUARY
AUGUST 31, 28, AUGUST 31, 28,
1995 1995 1995 1995
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.18 $10.00 $10.17 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.13 0.29 0.13 0.26
Net realized and unrealized gain/(loss) on
investments 1.35 0.14 1.34 0.13
TOTAL FROM INVESTMENT OPERATIONS 1.48 0.43 1.47 0.39
LESS DISTRIBUTIONS:
Dividends from net investment income (0.13) (0.25) (0.13) (0.22)
Distributions from net realized capital gains 0.00 0.00 0.00 0.00
TOTAL FROM DISTRIBUTIONS (0.13) (0.25) (0.13) (0.22)
NET ASSET VALUE, END OF PERIOD $11.53 $10.18 $11.51 $10.17
TOTAL RETURN (NOT ANNUALIZED) 14.63% 4.42% 14.51% 4.03%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $17,319 $9,682 $62,869 $41,153
Number of shares outstanding, end of period
(000) 1,502 951 5,463 4,045
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets(1) 0.95% 0.95% 1.20% 1.20%
Ratio of net investment income to average net
assets(1) 0.44% 3.59% 2.30% 3.35%
Portfolio turnover(2) - - - -
- ----------------------------------------------------------------------------------------------------
(1) This ratio includes expenses charged to the
Master Series.
(2) The Funds invest all of their assets in the
corresponding Master Series, hence no
securities-related activity.
</TABLE>
16
<PAGE>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LIFEPATH 2040 FUND
------------------------------------------------------
INSTITUTIONAL CLASS RETAIL CLASS
-------------------------- --------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
AUGUST 31, FEBRUARY 28, AUGUST 31, FEBRUARY 28,
1995 1995 1995 1995
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $10.37 $10.00 $10.37 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.10 0.20 0.09 0.18
Net realized and
unrealized gain/(loss)
on investments 1.50 0.34 1.49 0.34
TOTAL FROM INVESTMENT
OPERATIONS 1.60 0.54 1.58 0.52
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.10) (0.17) (0.09) (0.15)
Distributions from net
realized capital gains 0.00 0.00 0.00 0.00
TOTAL FROM DISTRIBUTIONS (0.10) (0.17) (0.09) (0.15)
NET ASSET VALUE, END OF
PERIOD $11.87 $10.37 $11.86 $10.37
TOTAL RETURN (NOT
ANNUALIZED) 15.48% 5.55% 15.33% 5.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000) $20,765 $9,976 $97,852 $56,737
Number of shares
outstanding, end of
period (000) 1,749 962 8,253 5,472
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets(1) 0.95% 0.95% 1.20% 1.20%
Ratio of net investment
income to average net
assets(1) 1.92% 2.61% 1.68% 2.35%
Portfolio turnover(2) - - - -
- ------------------------------------------------------------------------------------
(1) This ratio includes
expenses charged to the
Master Series.
(2) The Funds invest all of
their assets in the
corresponding Master
Series, hence no
securities-related
activity.
</TABLE>
17
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
18
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Trust (the "Trust") is registered under the Investment Company
Act of 1940 (the "1940 Act"), as amended, as an open-end management investment
company. The Trust was organized as a Massachusetts business trust pursuant to
an Agreement and Declaration of Trust dated May 14, 1993. The Trust currently is
authorized to issue ten separate diversified funds, of which the following
commenced operations on March 1, 1994: the LifePath 2000 Fund, the LifePath 2010
Fund, the LifePath 2020 Fund, the LifePath 2030 Fund and the LifePath 2040 Fund
(each, a "Fund," collectively, the "Funds"). The following significant
accounting policies are consistently followed by the Trust in the preparation of
its financial statements, and such policies are in conformity with generally
accepted accounting principles for investment companies.
Each Fund offers two classes of shares, an Institutional Class and a Retail
Class. The two classes of shares differ principally in their respective
distribution fees. Shareholders of each class bear certain expenses that pertain
to that particular class. All shareholders bear the common expenses of the Fund
and earn income from the portfolio, pro rata based on the average daily net
assets of each class. Dividends are declared separately for each class. Gains
are allocated to each class pro rata based upon net assets of each class on the
date of distribution. Neither class has preferential dividend rights;
differences in per share dividend rates are generally due to differences in
separate class expenses, including distribution fees and from the weightings of
pro rata income and gain allocations.
INVESTMENT POLICY AND SECURITY VALUATION
Each Fund invests all of its assets in a separate series (each, a "Master
Series") of Master Investment Portfolio. Each Master Series has the same
investment objective as the Fund bearing the corresponding name. The value of
each Fund's investment in its corresponding Master Series reflects that Fund's
interest in the net assets of that Master Series (99.98%, 99.98%, 99.99%,
99.96%, and 99.98%) for the LifePath 2000, LifePath 2010, LifePath 2020,
LifePath 2030 and LifePath 2040 Funds, respectively, at August 31, 1995. The
Master Series invest in a
19
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
wide range of U.S. and foreign equity, debt securities and money market
instruments. Each Master Series follows an asset allocation strategy among three
broad investment classes: equity and debt securities of issuers located
throughout the world and cash in the form of money market instruments. The
equity securities of the Master Series are valued at their last sale price on
the primary securities exchange or national securities market on which such
securities are traded. Securities not listed on an exchange or national
securities market, or securities in which there were no transactions, are valued
at their most recent bid prices. Debt securities maturing in 60 days or less are
valued at amortized cost, which approximates market value. Debt securities,
other than those maturing in 60 days or less, are valued at the latest quoted
bid price. Any securities, restricted securities or other assets for which
recent market quotations are not readily available are valued at fair value as
determined in good faith in accordance with policies approved by the Master
Portfolio's Board of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are accounted for by each Master Series on the date
the securities are purchased or sold (trade date). Revenue is recognized by each
Master Series as follows: Dividend income is recognized on the ex-dividend date,
and interest income is recognized on a daily accrual basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Bond discounts and premiums are amortized as required by the Internal Revenue
Code of 1986 (the "Code").
All net investment income and realized and unrealized capital gains and
losses of each Master Series are allocated pro rata among its respective Funds.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Each Fund declares and pays dividends from net investment income quarterly.
Each Fund makes distributions from net realized securities gains, if any, once a
year.
FEDERAL INCOME TAXES
Each Fund of the Trust is treated as a separate entity for federal income
tax purposes. It is the policy of each Fund of the Trust to continue to qualify
as a
20
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
regulated investment company by complying with the provisions applicable to
investment companies, as defined in the Code, and to make distributions of
investment company taxable income and net capital gain (after reduction for
capital loss carryforwards) sufficient to relieve it from all, or substantially
all, federal income taxes. Accordingly, no provision for federal income taxes
was required. The LifePath 2020 Fund has a capital loss carryforward of $179,977
which will expire in the year 2002. The LifePath 2030 Fund has a capital loss
carryforward of $311,585 which will expire in the year 2002, and the LifePath
2040 Fund has a capital loss carryforward of $32,220 which will expire in the
year 2002.
ORGANIZATION EXPENSES
Stephens Inc. ("Stephens"), the Funds' administrator, sponsor and
distributor, has incurred all expenses in connection with the Funds'
organization and initial registration.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into an agreement on behalf of the Funds with Wells
Fargo Bank ("WFB") to provide transfer and dividend disbursing agency services.
For providing the transfer and dividend disbursing agency services, the Trust
has agreed to pay a monthly fee at the annual rate of 0.10% of each Fund's
average daily net assets.
On behalf of the Funds, the Trust may enter into servicing agreements with
certain financial institutions, securities dealers and other industry
professionals (collectively, "Shareholder Servicing Agents") for the provision
of certain services to Fund shareholders. For the services provided pursuant to
a Shareholder Servicing Agreement, the Trust may pay each Shareholder Servicing
Agent a monthly fee at the annual rate of up to 0.20% of the average daily value
of each Fund's shares beneficially owned by customers of the Shareholder
Servicing Agent. The Trust has entered into a Shareholder Servicing Agreement
with WFB.
21
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
The Trust has entered into an agreement with Stephens on behalf of the
Retail Class of shares for distribution services and has adopted a Plan of
Distribution pursuant to Rule 12b-1 under the 1940 Act, whereby Stephens may be
compensated for services rendered and reimbursed for expenses incurred. For
providing these services, Stephens is entitled to receive monthly payments at an
annual rate of 0.25% of the average daily net assets of the Retail Class of
shares.
The Trust has also entered into an administration agreement on behalf of the
Funds with Stephens whereby Stephens has agreed to provide administrative
services to the Funds. For providing administrative services, the Trust pays
Stephens a monthly fee at the annual rate of 0.10% of each Fund's average daily
net assets.
Under the Administration Agreement, Stephens has agreed to assume the
operating expenses of each LifePath Fund and a pro rata share of the operating
expenses of each LifePath Master Series, except for extraordinary expenses and
those fees and expenses payable pursuant to the various service contracts
described above which will be borne by the Trust and those expenses specifically
assumed by WFB under its contracts with the Funds.
Certain officers and directors of the Trust are also officers of Stephens.
At August 31, 1995, these officers of Stephens collectively owned less than 1%
of the Funds' outstanding shares.
3. CAPITAL SHARE TRANSACTIONS
As of August 31, 1995, the Trust has authorized an unlimited number of
shares of beneficial interest. Transactions in shares for the six months ended
August 31, 1995, for each Fund are disclosed in detail in the Statements of
Changes in Net Assets.
22
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
23
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
Portfolios of Investments (Unaudited)
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010 LIFEPATH 2020
--------------------------- --------------------------- ---------------------------
<S> <C> <C> <C> <C> <C> <C>
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
COMMON STOCKS
PERCENT OF NET ASSETS 22.8% 51.2% 68.7%
LARGE CAP GROWTH STOCKS
PERCENT OF NET ASSETS 3.3% 16.1% 23.2%
AT & T Corp 1,945 $ 109,799 8,751 $ 494,338 20,907 $ 1,181,166
Abbott Laboratories 961 37,239 4,446 172,283 10,509 407,224
Airtouch Communications + 638 20,735 2,701 87,783 6,512 211,640
Albertson's Inc 344 10,965 1,400 44,625 3,308 105,443
Alco Standard Corp 44 3,542 265 21,333 724 58,282
Alexander & Alexander Services 1 23 223 5,157 581 13,436
Allergan Inc 62 1,883 407 12,363 801 24,330
Alltel Corp 271 7,656 1,050 29,663 2,538 71,699
ALZA Corp + 118 2,803 487 11,566 1,105 26,244
American Home Products Corp 344 26,488 1,669 128,513 4,115 316,855
American International Group Inc 609 49,101 2,673 215,511 6,238 502,939
Ameritech Corp 683 35,004 3,100 158,875 7,273 372,741
Amgen Inc + 316 15,129 1,496 71,621 3,488 166,988
AMP Inc 230 9,344 1,160 47,125 2,906 118,056
Andrew Corp + 3 175 177 10,310 469 27,319
Anheuser-Busch Inc 366 20,908 1,444 82,489 3,396 193,997
Applied Materials Inc + 100 10,400 420 43,680 1,291 134,264
Armco Inc + 207 1,294 475 2,969 1,138 7,113
Atlantic Richfield Corp 205 22,371 920 100,395 2,122 231,563
Autodesk Inc 84 3,875 230 10,609 668 30,812
Automatic Data Processing 173 11,245 837 54,405 1,923 124,995
Avery Dennison Corp 48 1,968 295 12,095 655 26,855
Avon Products Inc 77 5,438 345 24,366 914 64,551
Bard (C R) Inc 41 1,271 262 8,122 713 22,103
Barrick Gold Corp 507 12,865 1,970 49,989 4,676 118,654
Bell Atlantic Corp 589 35,193 2,438 145,671 5,815 347,446
Belo (A H) Corp 456 16,017 240 8,430 714 25,079
Bemis Co Inc 40 1,160 261 7,569 687 19,923
Biomet Inc + 77 1,242 644 10,385 1,465 23,623
Block (H & R) Inc 161 6,279 552 21,528 1,391 54,249
Boston Scientific Corp + 143 5,684 876 34,821 1,963 78,029
Bristol-Myers Squibb Co 671 46,047 2,782 190,915 6,728 461,709
Browning-Ferris Industries Inc 288 9,684 1,174 39,476 2,833 95,260
CBS Inc 105 8,374 409 32,618 864 68,904
CPC International Inc 187 11,758 776 48,791 1,971 123,927
CUC International Inc + 210 7,166 955 32,589 2,332 79,580
Cabletron Systems Inc + 50 2,644 410 21,679 990 52,346
Campbell Soup Co 340 15,555 1,345 61,534 3,342 152,897
Capital Cities/ABC Inc 194 22,310 882 101,430 2,040 234,600
Ceridian Corp + 27 1,181 224 9,800 588 25,725
Cincinnati Milacron Inc 59 $ 1,954 182 $ 6,029 405 $ 13,416
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
SECURITY NAME SHARES VALUE SHARES VALUE
COMMON STOCKS
PERCENT OF NET ASSETS 81.5% 95.7%
LARGE CAP GROWTH STOCKS
PERCENT OF NET ASSETS 27.7% 36.3%
AT & T Corp 16,838 $ 951,254 32,808 $ 1,853,556
Abbott Laboratories 8,552 331,390 16,479 638,561
Airtouch Communications + 5,222 169,715 10,329 335,693
Albertson's Inc 2,666 84,979 5,282 168,364
Alco Standard Corp 542 43,631 1,124 90,482
Alexander & Alexander Services 451 10,429 872 20,165
Allergan Inc 690 20,959 1,303 39,579
Alltel Corp 2,023 57,150 3,838 108,424
ALZA Corp + 907 21,541 1,657 39,354
American Home Products Corp 3,273 252,021 6,372 490,644
American International Group Inc 5,028 405,383 9,742 785,449
Ameritech Corp 5,876 301,145 11,402 584,353
Amgen Inc + 2,794 133,763 5,528 264,653
AMP Inc 2,348 95,388 4,559 185,209
Andrew Corp + 409 23,824 752 43,804
Anheuser-Busch Inc 2,761 157,722 5,350 305,619
Applied Materials Inc + 916 95,264 1,765 183,560
Armco Inc + 1,005 6,281 2,024 12,650
Atlantic Richfield Corp 1,762 192,278 3,401 371,134
Autodesk Inc 553 25,507 1,005 46,356
Automatic Data Processing 1,585 103,025 2,907 188,955
Avery Dennison Corp 615 25,215 1,115 45,715
Avon Products Inc 740 52,263 1,533 108,268
Bard (C R) Inc 590 18,290 1,088 33,728
Barrick Gold Corp 3,721 94,420 7,335 186,126
Bell Atlantic Corp 4,618 275,926 9,062 541,455
Belo (A H) Corp 444 15,596 740 25,993
Bemis Co Inc 582 16,878 1,034 29,986
Biomet Inc + 1,234 19,898 2,361 38,071
Block (H & R) Inc 1,130 44,070 2,283 89,037
Boston Scientific Corp + 1,591 63,242 3,206 127,439
Bristol-Myers Squibb Co 5,369 368,448 10,420 715,073
Browning-Ferris Industries Inc 2,239 75,286 4,455 149,799
CBS Inc 677 53,991 1,462 116,595
CPC International Inc 1,539 96,765 3,112 195,667
CUC International Inc + 1,875 63,984 3,670 125,239
Cabletron Systems Inc + 777 41,084 1,525 80,634
Campbell Soup Co 2,625 120,094 5,067 231,815
Capital Cities/ABC Inc 1,679 193,085 3,288 378,120
Ceridian Corp + 535 23,406 880 38,500
Cincinnati Milacron Inc 363 $ 12,024 727 $ 24,082
</TABLE>
24 25
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Circuit City Stores Inc 143 4,934 512 17,664 1,301 44,885
Cisco Systems Inc + 349 22,903 1,529 100,341 3,590 235,594
Clorox Co 45 3,043 266 17,988 698 47,202
Coca-Cola Co 1,566 100,616 7,041 452,384 16,752 1,076,316
Colgate-Palmolive Co 183 12,444 821 55,828 1,893 128,724
Columbia HCA Healthcare Corp 575 27,025 2,450 115,150 5,843 274,621
Comcast Corp Class A 393 8,400 1,299 27,766 3,124 66,776
Compaq Computer Corp + 342 16,331 1,424 67,996 3,451 164,785
Computer Associates International Inc 213 14,804 925 64,288 2,149 149,356
Computer Sciences Corp + 38 2,290 259 15,605 770 46,393
ConAgra Inc 334 12,650 1,340 50,753 3,212 121,655
Cooper Tire & Rubber Co 121 3,146 441 11,466 1,054 27,404
Corning Inc 261 8,515 1,225 39,966 3,019 98,495
Crane Co 52 1,872 175 6,300 348 12,528
DSC Communications Corp + 171 8,978 663 34,808 1,460 76,650
Darden Restaurants Inc + 203 2,081 915 9,379 2,011 20,613
Deluxe Corp 120 3,750 439 13,719 1,127 35,219
Dial Corp 136 3,264 480 11,520 1,241 29,784
Disney (Walt) Co 641 35,976 2,849 159,900 6,849 384,400
Dover Corp 50 3,988 296 23,606 759 60,530
Dun & Bradstreet Corp 223 12,906 960 55,560 2,254 130,450
Eastman Chemical Co 120 7,755 438 28,306 1,127 72,832
Eastman Kodak Co 429 24,721 1,881 108,393 4,490 258,736
Ecolab Inc 60 1,643 406 11,114 832 22,776
Emerson Electric Co 268 19,129 1,326 94,643 3,079 219,764
Engelhard Corp 214 6,046 765 21,611 1,912 54,014
Enron Corp 336 11,298 1,394 46,873 3,342 112,375
FMC Corp + -- -- 161 12,397 530 40,810
First Data Corp 173 10,099 646 37,710 1,540 89,898
Fluor Corp 119 6,962 437 25,565 1,126 65,871
Foster Wheeler Corp -- -- 160 5,900 429 15,819
Freeport-McMoRan Copper & Gold Inc Class A 38 888 28 655 52 1,215
Freeport-McMoRan Copper & Gold Inc Class B 1,072 25,058 1,187 27,746 2,718 63,533
Gannett Co Inc 183 9,791 820 43,870 1,812 96,942
Gap Inc 179 5,750 819 26,310 1,888 60,652
General Electric Co 2,122 124,933 9,391 552,895 22,437 1,320,978
General Mills Inc 203 10,480 915 47,237 2,111 108,980
Genuine Parts Co 118 4,646 708 27,878 1,603 63,118
Gillette Co 524 21,877 2,440 101,870 5,822 243,069
Grace (W R) & Co 139 9,261 483 32,180 1,272 84,747
Grainger (W W) Inc 39 2,321 260 15,470 666 39,627
Great Lakes Chemical Corp 75 $ 4,959 344 $ 22,747 912 $ 60,306
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Circuit City Stores Inc 1,065 36,743 1,965 67,793
Cisco Systems Inc + 2,845 186,703 5,605 367,828
Clorox Co 535 36,179 1,078 72,900
Coca-Cola Co 13,545 870,266 26,197 1,683,157
Colgate-Palmolive Co 1,532 104,176 3,098 210,664
Columbia HCA Healthcare Corp 4,765 223,955 9,184 431,648
Comcast Corp Class A 2,550 54,506 4,968 106,191
Compaq Computer Corp + 2,833 135,276 5,329 254,460
Computer Associates International Inc 1,674 116,343 3,393 235,814
Computer Sciences Corp + 571 34,403 1,078 64,950
ConAgra Inc 2,613 98,967 5,141 194,715
Cooper Tire & Rubber Co 921 23,946 1,695 44,070
Corning Inc 2,410 78,626 4,784 156,078
Crane Co 339 12,204 600 21,600
DSC Communications Corp + 1,257 65,993 2,333 122,483
Darden Restaurants Inc + 1,647 16,882 3,351 34,348
Deluxe Corp 860 26,875 1,688 52,750
Dial Corp 1,028 24,672 1,908 45,792
Disney (Walt) Co 5,602 314,412 10,789 605,533
Dover Corp 563 44,899 1,152 91,872
Dun & Bradstreet Corp 1,821 105,390 3,591 207,829
Eastman Chemical Co 864 55,836 1,686 108,958
Eastman Kodak Co 3,607 207,853 6,909 398,131
Ecolab Inc 659 18,040 1,322 36,190
Emerson Electric Co 2,472 176,439 4,819 343,956
Engelhard Corp 1,497 42,290 2,910 82,208
Enron Corp 2,642 88,837 5,250 176,531
FMC Corp + 373 28,721 893 68,761
First Data Corp 1,248 72,852 2,404 140,334
Fluor Corp 863 50,486 1,688 98,748
Foster Wheeler Corp 373 13,754 741 27,324
Freeport-McMoRan Copper & Gold Inc Class A 38 888 236 5,517
Freeport-McMoRan Copper & Gold Inc Class B 2,192 51,238 4,152 97,053
Gannett Co Inc 1,528 81,748 2,841 151,994
Gap Inc 1,521 48,862 2,882 92,584
General Electric Co 18,076 1,064,225 35,072 2,064,864
General Mills Inc 1,647 85,026 3,351 172,995
Genuine Parts Co 1,288 50,715 2,520 99,225
Gillette Co 4,704 196,392 9,176 383,098
Grace (W R) & Co 1,039 69,223 1,938 129,119
Grainger (W W) Inc 576 34,272 1,047 62,297
Great Lakes Chemical Corp 739 $ 48,866 1,323 $ 87,483
</TABLE>
26 27
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Harland (John H) Co 53 1,173 176 3,894 414 9,160
Harnischfeger Industries Inc 108 3,969 319 11,723 594 21,830
Harrah's Entertainment Inc + 154 4,909 522 16,639 1,348 42,968
Heinz (H J) Co 316 13,391 1,346 57,037 3,219 136,405
Hercules Inc 188 10,458 653 36,323 1,510 83,994
Hewlett Packard Co 586 46,880 2,850 228,000 6,714 537,120
Hilton Hotels Corp 34 2,261 256 17,024 625 41,563
Home Depot Inc 635 25,321 2,677 106,745 6,245 249,019
Homestake Mining Co 166 2,739 780 12,870 1,776 29,304
Illinois Tool Works Inc 174 10,658 665 40,731 1,471 90,099
Intel Corp 1,016 62,357 4,602 282,448 10,970 673,284
International Flavors & Fragrances 171 8,187 663 31,741 1,465 70,137
Interpublic Group Cos Inc 82 3,188 476 18,505 1,077 41,868
Johnson & Johnson 827 57,063 3,578 246,882 8,561 590,709
Jostens Inc 5 120 301 7,224 585 14,040
Kellogg Co 269 18,158 1,227 82,823 2,879 194,333
Kimberly-Clark Corp 207 13,222 920 58,765 2,145 137,012
King World Productions + -- -- 212 8,056 508 19,304
Kroger Co + 165 5,383 608 19,836 1,453 47,404
Lilly (Eli) & Co 338 27,674 1,665 136,322 3,825 313,172
Limited Inc 486 8,991 2,033 37,611 4,710 87,135
Lockheed Martin Corp 202 12,297 1,108 67,450 2,631 160,162
Lowe's Co Inc 200 6,650 913 30,357 2,082 69,227
MBNA Corp 185 6,568 874 31,027 1,970 69,935
Manor Care Inc 59 1,910 305 9,874 805 26,062
Marsh & McLennan Companies Inc 80 6,590 399 32,868 925 76,197
Marriott International 123 4,367 713 25,312 1,641 58,256
Mattel Inc 247 7,163 1,223 35,467 2,960 85,840
McDonald's Corp 890 32,485 3,884 141,766 9,118 332,807
McGraw-Hill Inc 36 2,835 258 20,318 678 53,393
Medtronic Inc 100 9,438 592 55,870 1,519 143,356
Merck & Co Inc 1,572 78,404 6,903 344,287 16,388 817,352
Microsoft Corp + 759 70,208 3,242 299,885 7,693 711,603
Micron Technology Inc 276 21,218 1,158 89,021 2,748 211,253
Millipore Corp 50 1,744 294 10,253 584 20,367
Minnesota Mining & Manufacturing Co 567 30,972 2,360 128,915 5,526 301,858
Morton International Inc 182 5,915 871 28,308 1,906 61,945
Motorola Inc 751 56,137 3,266 244,134 7,756 579,761
Nalco Chemical Co 71 2,485 340 11,900 879 30,765
Newell Co 202 5,050 915 22,875 2,087 52,175
Newmont Mining Corp 124 5,394 518 22,533 1,094 47,589
Northern Telecom Ltd 340 12,495 1,397 51,340 3,304 121,422
Novell Inc + 520 9,360 1,992 35,856 4,808 86,544
Nucor Corp 127 $ 6,223 521 $ 25,529 1,196 $ 58,604
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Harland (John H) Co 305 6,748 604 13,364
Harnischfeger Industries Inc 537 19,735 960 35,280
Harrah's Entertainment Inc + 1,090 34,744 2,210 70,444
Heinz (H J) Co 2,629 111,404 4,937 209,205
Hercules Inc 1,238 68,864 2,393 133,111
Hewlett Packard Co 5,412 432,960 10,466 837,280
Hilton Hotels Corp 563 37,440 1,005 66,833
Home Depot Inc 5,113 203,881 9,957 397,035
Homestake Mining Co 1,466 24,189 2,815 46,448
Illinois Tool Works Inc 1,264 77,420 2,288 140,140
Intel Corp 8,826 541,696 17,158 1,053,072
International Flavors & Fragrances 1,163 55,679 2,237 107,096
Interpublic Group Cos Inc 880 34,210 1,606 62,433
Johnson & Johnson 6,912 476,928 13,249 914,181
Jostens Inc 457 10,968 884 21,216
Kellogg Co 2,324 156,870 4,616 311,580
Kimberly-Clark Corp 1,662 106,160 3,319 212,001
King World Productions + 376 14,288 698 26,524
Kroger Co + 1,196 39,020 2,404 78,431
Lilly (Eli) & Co 3,095 253,403 6,001 491,332
Limited Inc 3,810 70,485 7,263 134,366
Lockheed Martin Corp 2,154 131,125 4,184 254,701
Lowe's Co Inc 1,741 57,888 3,269 108,694
MBNA Corp 1,536 54,528 3,004 106,642
Manor Care Inc 707 22,889 1,217 39,400
Marsh & McLennan Companies Inc 757 62,358 1,445 119,032
Marriott International 1,342 47,641 2,495 88,573
Mattel Inc 2,348 68,092 4,479 129,891
McDonald's Corp 7,394 269,881 14,355 523,958
McGraw-Hill Inc 503 39,611 1,022 80,483
Medtronic Inc 1,216 114,760 2,404 226,878
Merck & Co Inc 13,210 658,849 25,490 1,271,314
Microsoft Corp + 6,204 573,870 12,109 1,120,083
Micron Technology Inc 2,214 170,201 4,334 333,176
Millipore Corp 472 16,461 920 32,085
Minnesota Mining & Manufacturing Co 4,512 246,468 8,671 473,653
Morton International Inc 1,529 49,693 3,000 97,500
Motorola Inc 6,235 466,066 12,252 915,837
Nalco Chemical Co 734 25,690 1,387 48,545
Newell Co 1,639 40,975 3,356 83,900
Newmont Mining Corp 946 41,151 1,713 74,516
Northern Telecom Ltd 2,750 101,063 5,164 189,777
Novell Inc + 3,886 69,948 7,487 134,766
Nucor Corp 955 $ 46,795 1,926 $ 94,374
</TABLE>
28 29
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Oracle Systems Corp + 562 22,550 2,352 94,374 5,702 228,793
Oryx Energy Co + 245 3,308 565 7,628 1,280 17,280
Owens Corning Fiberglass + 26 1,021 323 12,678 710 27,868
PPG Industries Inc 248 10,602 1,181 50,488 2,728 116,622
Pall Corp 78 1,706 594 12,994 1,517 33,184
Pep Boys-Manny Moe & Jack 57 1,568 303 8,333 777 21,368
Pepsico Inc 999 45,205 4,413 199,688 10,455 473,089
Perkin-Elmer Corp 27 921 224 7,644 586 19,997
Pfizer Inc 770 38,019 3,532 174,393 8,316 410,603
Philip Morris Co Inc 1,076 80,297 4,740 353,723 11,139 831,248
Phillips Petroleum Co 358 11,769 1,438 47,274 3,490 114,734
Pioneer Hi Bred International Inc 132 5,676 474 20,382 1,134 48,762
Pitney Bowes Inc 202 8,206 815 33,109 1,978 80,356
Placer Dome Inc 292 7,629 1,299 33,936 3,146 82,189
Praxair Inc 161 4,186 777 20,202 1,820 47,320
Premark International Inc 61 3,195 306 16,027 833 43,628
Procter & Gamble Co 823 57,096 3,847 266,886 9,114 632,284
Quaker Oats Co 136 4,726 774 26,897 1,788 62,133
Ralston-Purina Group 151 7,852 518 26,936 1,344 69,888
Reebok International Ltd 95 3,373 438 15,549 1,030 36,565
Rubbermaid Inc 206 6,129 919 27,340 2,170 64,558
St Jude Medical Inc + 32 1,908 252 15,026 617 36,789
Santa Fe Pacific Gold Corp 128 1,552 756 9,167 1,689 20,479
Sara Lee Corp 613 17,011 2,652 73,593 6,287 174,464
Schering-Plough Corp 476 22,194 2,096 97,726 4,962 231,353
Schlumberger Ltd 327 21,092 1,309 84,431 3,172 204,594
Scientific-Atlanta Inc 82 1,640 377 7,540 968 19,360
Scott Paper Co 160 7,420 800 37,100 1,998 92,657
Shared Medical System Corp 40 1,475 138 5,089 262 9,661
Shoney's Inc + 97 1,128 170 1,976 451 5,243
Sigma Aldrich Corp 62 2,976 262 12,576 667 32,016
Silicon Graphics Inc + 217 9,168 922 38,955 2,075 87,669
Southwest Airlines Co 175 4,528 839 21,709 1,871 48,412
Stone Container Corp + 33 718 526 11,441 1,233 26,818
Sysco Corp 248 7,130 1,009 29,009 2,374 68,253
Tektronix Inc 78 3,559 176 8,030 423 19,299
Tele-Communication Inc Class A + 762 14,097 3,627 67,100 8,591 158,934
Teledyne Inc 22 526 294 7,026 732 17,493
Tellabs Inc + 100 4,675 500 23,375 1,200 56,100
Texas Instruments Inc 272 20,366 1,058 79,218 2,470 184,941
Time Warner Inc 463 19,504 2,135 89,937 5,046 212,563
Tribune Co 68 4,556 338 22,646 894 59,898
Trinova Corp 50 1,838 123 4,520 344 12,642
Tyco International Inc 83 $ 4,907 475 $ 28,084 963 $ 56,937
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Oracle Systems Corp + 4,574 183,532 8,871 355,949
Oryx Energy Co + 1,079 14,567 2,039 27,527
Owens Corning Fiberglass + 531 20,842 1,175 46,119
PPG Industries Inc 2,244 95,931 4,350 185,963
Pall Corp 1,275 27,891 2,480 54,250
Pep Boys-Manny Moe & Jack 698 19,195 1,281 35,228
Pepsico Inc 8,371 378,788 16,227 734,272
Perkin-Elmer Corp 434 14,810 876 29,894
Pfizer Inc 6,782 334,861 12,966 640,196
Philip Morris Co Inc 9,008 672,222 17,451 1,302,281
Phillips Petroleum Co 2,748 90,341 5,392 177,262
Pioneer Hi Bred International Inc 916 39,388 1,740 74,820
Pitney Bowes Inc 1,643 66,747 3,128 127,075
Placer Dome Inc 2,547 66,540 4,966 129,737
Praxair Inc 1,448 37,648 2,928 76,128
Premark International Inc 696 36,453 1,250 65,469
Procter & Gamble Co 7,327 508,311 14,180 983,738
Quaker Oats Co 1,455 50,561 2,747 95,458
Ralston-Purina Group 1,090 56,680 2,192 113,984
Reebok International Ltd 819 29,075 1,764 62,622
Rubbermaid Inc 1,686 50,159 3,416 101,626
St Jude Medical Inc + 540 32,198 900 53,663
Santa Fe Pacific Gold Corp 1,388 16,830 2,726 33,053
Sara Lee Corp 5,133 142,441 9,905 274,864
Schering-Plough Corp 3,930 183,236 7,706 359,292
Schlumberger Ltd 2,597 167,507 5,057 326,177
Scientific-Atlanta Inc 855 17,100 1,553 31,060
Scott Paper Co 1,566 72,623 3,102 143,855
Shared Medical System Corp 258 9,514 494 18,216
Shoney's Inc + 396 4,604 804 9,347
Sigma Aldrich Corp 496 23,808 971 46,608
Silicon Graphics Inc + 1,684 71,149 3,233 136,594
Southwest Airlines Co 1,573 40,701 3,064 79,281
Stone Container Corp + 1,068 23,229 2,046 44,501
Sysco Corp 1,953 56,149 3,766 108,273
Tektronix Inc 333 15,193 676 30,843
Tele-Communication Inc Class A + 6,927 128,150 13,557 250,805
Teledyne Inc 606 14,482 1,105 26,407
Tellabs Inc + 900 42,075 1,800 84,150
Texas Instruments Inc 1,954 146,306 3,914 293,061
Time Warner Inc 4,054 170,775 7,812 329,081
Tribune Co 729 48,843 1,372 91,924
Trinova Corp 329 12,091 590 21,683
Tyco International Inc 798 $ 47,182 1,591 $ 94,068
</TABLE>
30 31
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
UST Inc 234 6,377 1,043 28,422 2,631 71,695
USAir Group Inc + 129 1,048 351 2,852 751 6,102
U.S. Healthcare Inc 208 6,656 921 29,472 2,121 67,872
Unocal Corp 323 9,407 1,309 38,125 3,265 95,093
Viacom Inc Class B + 472 22,951 1,951 94,867 4,760 231,455
WMX Technologies Inc 622 18,271 2,661 78,167 6,403 188,088
Wal Mart Stores Inc 2,902 71,462 12,778 314,658 30,346 747,270
Walgreen Co 380 9,310 1,412 34,594 3,202 78,449
Warner Lambert Co 159 14,370 799 72,210 1,746 157,795
Whitman Corp 60 1,200 601 12,020 1,367 27,340
Winn-Dixie Stores Inc 80 4,760 400 23,800 971 57,775
Worthington Industries Inc 33 660 477 9,540 1,139 22,780
Wrigley (Wm) Jr Co 179 8,077 695 31,362 1,552 70,034
LARGE CAP GROWTH STOCKS - VALUE $ 2,626,863 $ 11,544,995 $ 27,471,549
- COST $ 2,326,091 $ 9,749,950 $ 23,196,437
LARGE CAP VALUE STOCKS
PERCENT OF NET ASSETS 7.1% 17.2% 22.0%
AMR Corp + 183 $ 12,902 478 $ 33,699 955 $ 67,328
Advanced Micro Devices + 344 11,610 683 23,051 1,395 47,081
Aetna Life & Casualty Co 372 25,389 665 45,386 1,511 103,126
Ahmanson (H F) & Co 380 9,025 698 16,578 1,532 36,385
Air Products & Chemicals Inc 375 20,109 668 35,822 1,500 80,438
Alberto-Culver Co Class B 48 1,368 222 6,327 410 11,685
Alcan Aluminium Ltd 668 21,794 1,429 46,621 2,977 97,125
Allied Signal Inc 499 22,143 1,826 81,029 3,721 165,119
Allstate Corp 1,304 44,173 2,780 94,173 5,960 201,895
Aluminum Co of America 560 31,990 1,148 65,580 2,354 134,472
Amerada Hess Corp 338 16,013 582 27,572 1,245 58,982
Amdahl Corp + 327 2,984 745 6,798 1,518 13,852
American Brands Inc 603 25,326 1,141 47,922 2,521 105,882
American Electric Power Inc 548 18,701 1,162 39,653 2,429 82,890
American Express Corp 1,441 58,180 3,114 125,728 6,589 266,031
American General Corp 650 22,913 1,285 45,296 2,667 94,012
American Greetings Corp Class A 280 8,610 501 15,406 947 29,120
American Stores Co 475 13,953 941 27,642 1,955 57,428
Amoco Corp 1,444 92,055 3,139 200,111 6,583 419,666
Apple Computer Inc 380 16,340 798 34,314 1,563 67,209
Archer-Daniels-Midland Co 1,762 29,292 3,350 55,690 7,158 118,999
Armstrong World Industries Inc 90 5,164 213 12,221 534 30,638
ASARCO Inc 123 3,982 221 7,155 584 18,907
Ashland Inc 156 5,109 402 13,166 802 26,266
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
UST Inc 2,086 56,844 3,944 107,474
USAir Group Inc + 620 5,038 1,187 9,644
U.S. Healthcare Inc 1,664 53,248 3,279 104,928
Unocal Corp 2,595 75,579 4,957 144,373
Viacom Inc Class B + 3,800 184,775 7,457 362,597
WMX Technologies Inc 5,158 151,516 9,996 293,633
Wal Mart Stores Inc 24,534 604,150 47,492 1,169,491
Walgreen Co 2,658 65,121 4,972 121,814
Warner Lambert Co 1,449 130,953 2,720 245,820
Whitman Corp 1,078 21,560 2,161 43,220
Winn-Dixie Stores Inc 783 46,589 1,549 92,166
Worthington Industries Inc 974 19,480 1,849 36,980
Wrigley (Wm) Jr Co 1,227 55,368 2,337 105,457
LARGE CAP GROWTH STOCKS - VALUE $ 22,158,637 $ 42,990,902
- COST $ 18,718,654 $ 36,620,203
LARGE CAP VALUE STOCKS
PERCENT OF NET ASSETS 25.8% 27.5%
AMR Corp + 788 $ 55,554 1,288 $ 90,804
Advanced Micro Devices + 1,106 37,328 1,633 55,114
Aetna Life & Casualty Co 1,161 79,238 1,874 127,901
Ahmanson (H F) & Co 1,181 28,049 1,832 43,510
Air Products & Chemicals Inc 1,167 62,580 1,864 99,957
Alberto-Culver Co Class B 334 9,519 481 13,709
Alcan Aluminium Ltd 2,375 77,484 3,701 120,745
Allied Signal Inc 2,990 132,681 4,659 206,743
Allstate Corp 4,686 158,738 9,533 322,930
Aluminum Co of America 1,821 104,025 2,955 168,804
Amerada Hess Corp 933 44,201 1,483 70,257
Amdahl Corp + 1,245 11,361 1,848 16,863
American Brands Inc 1,976 82,992 3,085 129,570
American Electric Power Inc 1,932 65,930 3,011 102,750
American Express Corp 5,189 209,506 8,125 328,047
American General Corp 2,133 75,188 3,301 116,360
American Greetings Corp Class A 779 23,954 1,175 36,131
American Stores Co 1,513 44,444 2,353 69,119
Amoco Corp 5,192 330,990 8,214 523,643
Apple Computer Inc 1,311 56,373 1,936 83,248
Archer-Daniels-Midland Co 5,757 95,713 8,898 147,928
Armstrong World Industries Inc 377 21,630 598 34,310
ASARCO Inc 420 13,598 658 21,303
Ashland Inc 672 22,008 971 31,800
</TABLE>
32 33
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Baker Hughes Inc 471 $ 10,598 888 $ 19,980 1,892 $ 42,570
Ball Corp 52 1,768 175 5,950 447 15,198
Bally Entertainment Corp + 107 1,297 304 3,686 742 8,997
Baltimore Gas & Electric Co 481 12,626 872 22,890 1,993 52,316
Banc One Corp 1,137 38,232 2,462 82,785 5,197 174,749
Bank of Boston Corp 360 15,840 653 28,732 1,494 65,736
Bank of New York Inc 539 23,447 1,210 52,635 2,503 108,881
BankAmerica Corp 1,121 63,337 2,298 129,837 4,934 278,771
Bankers Trust N Y Corp 190 13,086 485 33,404 995 68,531
Barnett Banks Inc 245 13,996 615 35,132 1,315 75,119
Bassett Furniture Industries 25 619 50 1,238 200 4,950
Bausch & Lomb Inc 154 6,122 400 15,900 765 30,409
Baxter International Inc 809 31,551 1,744 68,016 3,651 142,389
Becton Dickenson & Co 177 9,978 448 25,256 843 47,524
BellSouth Corp 1,444 99,275 3,139 215,806 6,591 453,131
Beneficial Corp 142 6,976 363 17,832 695 34,142
Bethlehem Steel Corp + 362 5,294 656 9,594 1,426 20,855
Beverly Enterprises + 220 2,915 591 7,831 1,250 16,563
Black & Decker Corp 322 10,425 542 17,547 1,157 37,458
Boatmen's Bancshares Inc 457 16,909 751 27,787 1,614 59,718
Boeing Co 946 60,308 2,126 135,533 4,507 287,321
Boise Cascade Corp 167 7,160 314 13,463 645 27,654
Briggs & Stratton Corp 50 1,894 149 5,643 372 14,090
Brown-Forman Corp Class B 271 10,027 442 16,354 866 32,042
Brown Group Inc 31 566 80 1,460 238 4,344
Bruno's Inc 7 72 13 133 28 287
Brunswick Corp 342 6,883 562 11,310 1,276 25,680
Burlington Northern Inc 131 9,072 574 39,750 1,205 83,446
Burlington Resources Inc 427 17,454 744 30,411 1,679 68,629
CIGNA Corp 176 17,028 447 43,247 942 91,139
CSX Corp 259 21,368 627 51,728 1,384 114,180
Carolina Power & Light Co 506 15,496 1,021 31,268 2,047 62,689
Caterpillar Inc 307 20,607 1,241 83,302 2,645 177,546
Centex Corp 55 1,609 128 3,744 352 10,296
Central & South West Corp 581 14,235 1,144 28,028 2,553 62,549
Champion International Corp 238 13,477 582 32,956 1,247 70,611
Charming Shoppes Inc 305 1,601 574 3,014 1,292 6,783
Chase Manhattan Corp 548 31,510 1,061 61,008 2,328 133,860
Chemical Banking Corp Class A 742 43,222 1,500 87,375 3,185 185,526
Chevron Corp 1,842 89,107 4,027 194,806 8,640 417,960
Chrysler Corp 1,095 58,993 2,324 125,206 4,861 261,886
Chubb Corp 229 20,896 523 47,724 1,100 100,375
Cinergy Corp 470 12,044 962 24,651 2,017 51,686
Citicorp 1,177 78,123 2,480 164,610 5,239 347,739
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Baker Hughes Inc 1,482 $ 33,345 2,182 $ 49,095
Ball Corp 337 11,458 497 16,898
Bally Entertainment Corp + 464 5,626 692 8,391
Baltimore Gas & Electric Co 1,577 41,396 2,379 62,449
Banc One Corp 4,089 137,493 6,466 217,419
Bank of Boston Corp 1,136 49,984 1,777 78,188
Bank of New York Inc 1,988 86,478 3,160 137,460
BankAmerica Corp 3,902 220,463 6,115 345,498
Bankers Trust N Y Corp 802 55,238 1,336 92,017
Barnett Banks Inc 974 55,640 1,565 89,401
Bassett Furniture Industries 120 2,970 206 5,099
Bausch & Lomb Inc 570 22,658 959 38,120
Baxter International Inc 2,893 112,827 4,637 180,843
Becton Dickenson & Co 659 37,151 1,132 63,817
BellSouth Corp 5,189 356,744 8,136 559,350
Beneficial Corp 530 26,036 858 42,149
Bethlehem Steel Corp + 1,138 16,643 1,683 24,614
Beverly Enterprises + 1,045 13,846 1,540 20,405
Black & Decker Corp 843 27,292 1,392 45,066
Boatmen's Bancshares Inc 1,327 49,099 2,071 76,627
Boeing Co 3,552 226,440 5,612 357,765
Boise Cascade Corp 488 20,923 709 30,398
Briggs & Stratton Corp 357 13,521 427 16,173
Brown-Forman Corp Class B 735 27,195 1,089 40,293
Brown Group Inc 221 4,033 253 4,617
Bruno's Inc 22 226 34 349
Brunswick Corp 948 19,079 1,532 30,832
Burlington Northern Inc 910 63,018 1,485 102,836
Burlington Resources Inc 1,310 53,546 2,052 83,876
CIGNA Corp 767 74,207 1,257 121,615
CSX Corp 1,127 92,978 1,774 146,355
Carolina Power & Light Co 1,663 50,929 2,555 78,247
Caterpillar Inc 2,089 140,224 3,264 219,096
Centex Corp 343 10,033 458 13,397
Central & South West Corp 1,947 47,702 3,165 77,543
Champion International Corp 933 52,831 1,512 85,617
Charming Shoppes Inc 994 5,219 1,604 8,421
Chase Manhattan Corp 1,831 105,283 2,910 167,325
Chemical Banking Corp Class A 2,557 148,945 4,002 233,117
Chevron Corp 6,784 328,176 10,727 518,919
Chrysler Corp 3,858 207,850 6,111 329,230
Chubb Corp 909 82,946 1,425 130,031
Cinergy Corp 1,625 41,641 2,515 64,447
Citicorp 4,121 273,531 6,552 434,889
</TABLE>
34 35
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Coastal Corp 358 $ 11,725 627 $ 20,534 1,390 $ 45,523
Columbia Gas System Inc + 139 4,900 360 12,690 672 23,688
Community Psychiatric Centers + 101 1,187 273 3,208 606 7,121
Conrail Inc 190 12,778 485 32,616 997 67,048
Consolidated Edison Co 785 22,176 1,472 41,584 3,069 86,699
Consolidated Freightways 162 4,192 261 6,753 610 15,784
Consolidated Natural Gas Co 338 13,055 582 22,480 1,241 47,934
Cooper Industries Inc 378 14,364 695 26,410 1,431 54,378
Coors (Adolph) Co Class B 67 1,139 265 4,505 541 9,197
CoreStates Financial Corp 477 17,649 942 34,854 1,860 68,820
Cray Research Inc + 46 1,070 119 2,767 290 6,743
Crown Cork & Seal Co + 330 14,850 575 25,875 1,212 54,540
Cummins Engine Co Inc 123 4,828 220 8,635 557 21,862
Cyprus Amax Minerals 336 9,408 581 16,268 1,268 35,504
Dana Corp 348 10,397 616 18,403 1,312 39,196
Data General Corp + 62 605 161 1,570 595 5,801
Dayton-Hudson Corp 75 5,484 445 32,541 934 68,299
Dean Witter Discover & Co 524 26,724 1,064 54,264 2,235 113,985
Deere & Co 226 19,323 521 44,546 1,096 93,708
Delta Air Lines Inc 138 10,264 360 26,775 666 49,534
Detroit Edison Co 482 14,761 923 28,267 1,869 57,238
Digital Equipment Corp + 467 19,497 884 36,907 1,958 81,747
Dillard Department Stores Inc Class A 373 11,516 666 20,563 1,498 46,251
Dominion Resources Inc 520 18,785 1,060 38,293 2,321 83,846
Donnelley (R R) & Sons Co 503 19,114 991 37,658 2,058 78,204
Dow Chemical Co 782 57,868 1,716 126,984 3,669 271,506
Dow Jones & Co Inc 350 12,819 618 22,634 1,244 45,562
Dresser Industries Inc 257 6,168 1,121 26,904 2,374 56,976
DuPont (E I) de Nemours 1,596 104,339 3,448 225,413 7,285 476,257
Duke Power Co 609 24,741 1,247 50,659 2,662 108,144
EG & G Inc 123 2,337 369 7,011 685 13,015
Eastern Enterprises 37 1,133 85 2,603 225 6,891
Eaton Corp 83 4,492 477 25,818 984 53,259
Echlin Inc 153 5,279 400 13,800 765 26,393
Echo Bay Mines Ltd 371 3,849 765 7,937 1,462 15,168
Enserch Corp 242 3,963 438 7,172 871 14,263
Entergy Corp 679 16,296 1,464 35,136 3,001 72,024
Exxon Corp 3,526 242,413 7,798 536,113 16,394 1,127,088
FPL Group Inc 583 22,664 1,145 44,512 2,479 96,371
Federal Express Corp + 148 10,619 394 28,270 757 54,315
Federal Home Loan Mortgage Corp 541 34,759 1,105 70,996 2,344 150,602
Federal National Mortgage Association 779 74,297 1,687 160,898 3,610 344,304
Federal Paper Board Co 124 4,914 321 12,720 559 22,150
First Chicago Corp 237 15,020 582 36,884 1,166 73,895
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Coastal Corp 1,103 $ 36,123 1,673 $ 54,791
Columbia Gas System Inc + 487 17,167 824 29,046
Community Psychiatric Centers + 412 4,841 724 8,507
Conrail Inc 797 53,598 1,341 90,182
Consolidated Edison Co 2,441 68,958 3,828 108,141
Consolidated Freightways 473 12,239 638 16,508
Consolidated Natural Gas Co 933 36,037 1,511 58,362
Cooper Industries Inc 1,124 42,712 1,776 67,488
Coors (Adolph) Co Class B 355 6,035 560 9,520
CoreStates Financial Corp 1,512 55,944 2,359 87,283
Cray Research Inc + 204 4,743 415 9,649
Crown Cork & Seal Co + 916 41,220 1,479 66,555
Cummins Engine Co Inc 418 16,407 653 25,630
Cyprus Amax Minerals 929 26,012 1,506 42,168
Dana Corp 1,078 32,205 1,649 49,264
Data General Corp + 362 3,530 611 5,957
Dayton-Hudson Corp 765 55,941 1,227 89,724
Dean Witter Discover & Co 1,725 87,975 2,786 142,086
Deere & Co 953 81,482 1,403 119,957
Delta Air Lines Inc 572 42,543 875 65,078
Detroit Edison Co 1,534 46,979 2,380 72,888
Digital Equipment Corp + 1,572 65,631 2,396 100,033
Dillard Department Stores Inc Class A 1,165 35,969 1,783 55,050
Dominion Resources Inc 1,819 65,711 2,770 100,066
Donnelley (R R) & Sons Co 1,623 61,674 2,487 94,506
Dow Chemical Co 2,862 211,788 4,501 333,074
Dow Jones & Co Inc 989 36,222 1,589 58,197
Dresser Industries Inc 1,916 45,984 2,953 70,872
DuPont (E I) de Nemours 5,738 375,122 9,066 592,690
Duke Power Co 2,090 84,906 3,356 136,338
EG & G Inc 515 9,785 864 16,416
Eastern Enterprises 179 5,482 282 8,636
Eaton Corp 787 42,596 1,314 71,120
Echlin Inc 574 19,803 956 32,982
Echo Bay Mines Ltd 1,118 11,599 1,722 17,866
Enserch Corp 699 11,446 1,013 16,588
Entergy Corp 2,392 57,408 3,750 90,000
Exxon Corp 12,926 888,663 20,475 1,407,656
FPL Group Inc 1,909 74,212 3,071 119,385
Federal Express Corp + 551 39,534 941 67,517
Federal Home Loan Mortgage Corp 1,893 121,625 3,024 194,292
Federal National Mortgage Association 2,828 269,721 4,444 423,847
Federal Paper Board Co 420 16,643 756 29,957
First Chicago Corp 930 58,939 1,477 93,605
</TABLE>
36 37
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
First Fidelity Bancorp 215 $ 14,056 485 $ 31,707 1,099 $ 71,847
First Interstate Bancorp 195 18,623 488 46,604 1,002 95,691
First Mississippi Corp 35 1,159 84 2,783 314 10,401
First Union Corp 523 26,215 1,065 53,383 2,236 112,080
Fleet Financial Group Inc 466 17,242 931 34,447 1,828 67,636
Fleetwood Enterprises Inc 130 2,551 252 4,946 616 12,089
Fleming Co Inc 165 4,806 213 6,204 508 14,796
Ford Motor Co 3,030 92,794 6,422 196,674 13,543 414,754
Fruit of the Loom Inc Class A + 214 5,029 450 10,575 954 22,419
GTE Corp 2,826 103,502 6,043 221,325 12,767 467,591
General Dynamics Corp 161 8,473 407 21,418 807 42,468
General Motors Corp 2,180 102,460 4,636 217,892 9,887 464,689
General Public Utilities 387 11,078 684 19,580 1,557 44,569
General Re Corp 197 29,279 542 80,555 1,132 168,244
General Signal Corp 33 1,172 255 9,053 663 23,537
Georgia-Pacific Corp 133 11,970 576 51,840 1,207 108,630
Giant Food Inc Class A 154 4,793 401 12,481 796 24,776
Giddings & Lewis Inc 60 983 183 2,997 473 7,745
Golden West Financial 162 7,736 408 19,482 808 38,582
Goodrich (B F) Co 45 2,678 118 7,021 314 18,683
Goodyear Tire & Rubber Co 490 19,600 981 39,240 2,032 81,280
Great Atlantic & Pacific Tea Co 167 4,739 215 6,101 541 15,351
Great Western Financial Corp 457 10,682 850 19,869 1,814 42,402
Halliburton Co 375 15,891 668 28,307 1,525 64,622
Handleman Co 59 561 132 1,254 467 4,437
Harcourt General Inc 86 3,580 480 19,980 908 37,796
Harris Corp 95 5,474 217 12,505 544 31,348
Hasbro Inc 329 10,651 524 16,965 1,126 36,454
Helmerich & Payne Inc 43 1,231 142 4,065 367 10,505
Hershey Foods Corp 229 13,711 523 31,315 1,175 70,353
Honeywell Inc 429 18,769 746 32,638 1,679 73,456
Household International Inc 341 19,139 585 32,833 1,280 71,840
Houston Industries Inc 429 18,179 846 35,849 1,780 75,428
ITT Corp 281 33,615 696 83,259 1,434 171,542
Inco Ltd 379 13,265 697 24,395 1,530 53,550
Ingersoll-Rand Co 360 13,635 653 24,732 1,387 52,533
Inland Steel Industries Inc 97 2,655 346 9,472 606 16,589
Intergraph Corp + 104 1,287 202 2,500 722 8,935
International Business Machines Corp 1,669 172,533 3,584 370,496 7,679 793,817
International Paper Co 392 32,095 810 66,319 1,631 133,538
James River Corp 218 7,576 489 16,993 1,047 36,383
Jefferson-Pilot Corp 136 8,551 258 16,222 655 41,183
Johnson Controls Inc 96 5,844 219 13,332 546 33,238
K Mart Corp 1,384 18,857 2,812 38,314 5,999 81,736
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
First Fidelity Bancorp 805 $ 52,627 1,320 $ 86,295
First Interstate Bancorp 815 77,833 1,254 119,757
First Mississippi Corp 224 7,420 348 11,528
First Union Corp 1,830 91,729 2,834 142,054
Fleet Financial Group Inc 1,493 55,241 2,307 85,359
Fleetwood Enterprises Inc 464 9,106 683 13,404
Fleming Co Inc 382 11,126 599 17,446
Ford Motor Co 10,697 327,596 16,859 516,307
Fruit of the Loom Inc Class A + 744 17,484 1,780 41,830
GTE Corp 10,161 372,147 16,001 586,037
General Dynamics Corp 609 32,049 1,039 54,677
General Motors Corp 7,768 365,096 12,292 577,724
General Public Utilities 1,168 33,434 1,844 52,785
General Re Corp 820 121,873 1,364 202,725
General Signal Corp 493 17,502 701 24,886
Georgia-Pacific Corp 923 83,070 1,493 134,370
Giant Food Inc Class A 640 19,920 885 27,546
Giddings & Lewis Inc 364 5,961 527 8,630
Golden West Financial 591 28,220 995 47,511
Goodrich (B F) Co 281 16,720 420 24,990
Goodyear Tire & Rubber Co 1,572 62,880 2,461 98,440
Great Atlantic & Pacific Tea Co 405 11,492 578 16,401
Great Western Financial Corp 1,441 33,683 2,103 49,158
Halliburton Co 1,168 49,494 1,863 78,945
Handleman Co 307 2,917 521 4,950
Harcourt General Inc 792 32,967 1,127 46,911
Harris Corp 409 23,569 614 35,382
Hasbro Inc 964 31,210 1,426 46,167
Helmerich & Payne Inc 215 6,154 408 11,679
Hershey Foods Corp 890 53,289 1,323 79,215
Honeywell Inc 1,315 57,531 2,069 90,519
Household International Inc 962 53,992 1,624 91,147
Houston Industries Inc 1,341 56,825 2,111 89,454
ITT Corp 1,130 135,176 1,734 207,430
Inco Ltd 1,233 43,155 1,930 67,550
Ingersoll-Rand Co 1,130 42,799 1,675 63,441
Inland Steel Industries Inc 542 14,837 782 21,407
Intergraph Corp + 511 6,324 737 9,120
International Business Machines Corp 6,043 624,695 9,538 985,991
International Paper Co 1,283 105,046 2,092 171,283
James River Corp 813 28,252 1,323 45,974
Jefferson-Pilot Corp 472 29,677 836 52,564
Johnson Controls Inc 416 25,324 621 37,803
K Mart Corp 4,681 63,779 7,312 99,626
</TABLE>
38 39
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Kaufman & Broad Home Corp 57 $ 762 130 $ 1,739 444 $ 5,939
Kerr-McGee Corp 141 7,755 362 19,910 668 36,740
KeyCorp 723 22,413 1,434 44,454 3,090 95,790
Knight-Ridder Inc 145 8,156 266 14,963 625 35,156
Laidlaw Inc Class B 881 7,929 1,692 15,228 3,661 32,949
Lincoln National Corp 340 14,620 560 24,080 1,298 55,814
Liz Claiborne Inc 188 4,277 483 10,988 1,013 23,046
Loews Corp 200 26,275 400 52,550 800 105,100
Longs Drug Stores Corp 37 1,369 85 3,145 249 9,213
Loral Corp 221 12,100 541 29,620 1,156 63,291
Louisiana Land & Exploration Co 83 3,175 181 6,923 400 15,300
Louisiana-Pacific Corp 368 8,740 662 15,723 1,433 34,034
Luby's Cafeterias Inc 45 894 119 2,365 280 5,565
MCI Communications 1,115 26,830 4,192 100,870 9,009 216,779
Mallinckrodt Group Inc 284 10,686 480 18,060 1,057 39,770
Masco Corp 499 13,972 1,015 28,420 2,081 58,268
May Co Department Stores Co 735 31,146 1,545 65,469 3,244 137,465
Maytag Corp 362 5,611 706 10,943 1,417 21,964
McDermott International Inc 144 3,276 365 8,304 702 15,971
McDonnell Douglas Corp 382 30,656 749 60,107 1,530 122,783
Mead Corp 154 9,452 400 24,550 765 46,952
Mellon Bank Corp 463 21,935 943 44,675 1,952 92,476
Melville Corp 360 12,015 653 21,794 1,412 47,126
Mercantile Stores Co Inc 90 4,129 263 12,065 532 24,406
Meredith Corp 50 1,963 198 7,772 360 14,130
Merrill Lynch & Co Inc 508 29,274 1,066 61,428 2,349 135,361
Mobil Corp 1,098 104,585 2,423 230,791 5,177 493,109
Monsanto Co 383 36,337 700 66,413 1,464 138,897
Moore Corp Ltd 350 7,306 619 12,922 1,345 28,077
Morgan (J P) & Co Inc 589 42,923 1,201 87,523 2,512 183,062
Morrison Knudsen Corp 55 426 229 1,775 367 2,844
NBD Bancorp Inc 506 18,090 1,020 36,465 2,147 76,755
NACCO Industries Inc Class A 16 920 40 2,300 154 8,855
National City Corp 473 14,072 940 27,965 1,913 56,912
National Semiconductor + 410 11,583 803 22,685 1,589 44,889
National Service Industries Inc 137 3,973 259 7,511 685 19,865
NationsBank 772 47,382 1,708 104,829 3,626 222,546
Navistar International Corp + 181 2,353 477 6,201 1,034 13,442
New York Times Co Class A 262 6,517 629 15,646 1,295 32,213
Niagara Mohawk Power Corp 475 5,700 891 10,692 1,951 23,412
NICOR Inc 142 3,639 264 6,765 719 18,424
Nike Inc Class B 180 16,673 500 46,313 972 90,032
NorAm Energy Corp 364 2,594 658 4,688 1,584 11,286
Nordstrom Inc 119 4,909 537 22,151 1,126 46,448
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Kaufman & Broad Home Corp 343 $ 4,588 464 $ 6,206
Kerr-McGee Corp 579 31,845 881 48,455
KeyCorp 2,495 77,345 3,830 118,730
Knight-Ridder Inc 537 30,206 803 45,169
Laidlaw Inc Class B 2,802 25,218 4,280 38,520
Lincoln National Corp 961 41,323 1,543 66,349
Liz Claiborne Inc 809 18,405 1,131 25,730
Loews Corp 600 78,825 1,000 131,375
Longs Drug Stores Corp 184 6,808 275 10,175
Loral Corp 837 45,826 1,383 75,719
Louisiana Land & Exploration Co 372 14,229 514 19,661
Louisiana-Pacific Corp 1,157 27,479 1,709 40,589
Luby's Cafeterias Inc 269 5,346 421 8,367
MCI Communications 7,079 170,338 11,228 270,174
Mallinckrodt Group Inc 795 29,912 1,193 44,887
Masco Corp 1,594 44,632 2,507 70,196
May Co Department Stores Co 2,619 110,980 4,026 170,602
Maytag Corp 1,135 17,593 1,667 25,839
McDermott International Inc 539 12,262 791 17,995
McDonnell Douglas Corp 1,223 98,146 1,834 147,179
Mead Corp 569 34,922 959 58,859
Mellon Bank Corp 1,551 73,479 2,363 111,947
Melville Corp 1,130 37,714 1,674 55,870
Mercantile Stores Co Inc 377 17,295 596 27,342
Meredith Corp 244 9,577 468 18,369
Merrill Lynch & Co Inc 1,833 105,627 2,895 166,824
Mobil Corp 4,088 389,382 6,557 624,554
Monsanto Co 1,210 114,799 1,848 175,329
Moore Corp Ltd 1,036 21,627 1,556 32,482
Morgan (J P) & Co Inc 1,918 139,774 3,094 225,475
Morrison Knudsen Corp 343 2,658 563 4,363
NBD Bancorp Inc 1,663 59,452 2,554 91,306
NACCO Industries Inc Class A 51 2,933 165 9,488
National City Corp 1,561 46,440 2,332 69,377
National Semiconductor + 1,320 37,290 1,980 55,935
National Service Industries Inc 474 13,746 715 20,735
NationsBank 2,837 174,121 4,467 274,162
Navistar International Corp + 755 9,815 1,152 14,976
New York Times Co Class A 1,014 25,223 1,532 38,109
Niagara Mohawk Power Corp 1,467 17,604 2,202 26,424
NICOR Inc 497 12,736 793 20,321
Nike Inc Class B 775 71,784 1,242 115,040
NorAm Energy Corp 1,230 8,764 2,080 14,820
Nordstrom Inc 862 35,558 1,285 53,006
</TABLE>
40 41
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Norfolk Southern Corp 342 $ 24,197 808 $ 57,166 1,741 $ 123,176
Northern States Power Co 167 7,118 438 18,670 851 36,274
Northrop Grumman Corp 136 8,279 258 15,706 668 40,665
Norwest Corp 1,008 30,366 2,036 61,335 4,248 127,971
NYNEX Corp 1,252 56,340 2,653 119,385 5,610 252,450
Occidental Petroleum Corp 986 21,446 1,969 42,826 4,165 90,589
Ogden Corp 201 4,673 325 7,556 684 15,903
Ohio Edison Co 493 10,661 983 21,257 2,041 44,137
ONEOK Inc 47 1,028 120 2,625 406 8,881
Outboard Marine Corp 35 748 84 1,796 324 6,926
PECO Energy Co 663 17,652 1,425 37,941 2,942 78,331
PNC Bank Corp 786 20,633 1,472 38,640 2,969 77,936
PACCAR Inc 93 4,604 215 10,643 542 26,829
Pacific Enterprises 298 7,152 492 11,808 1,106 26,544
Pacific Gas & Electric Co 1,273 36,599 2,698 77,568 5,710 164,163
Pacific Telesis Group 1,264 35,866 2,664 75,591 5,635 159,893
PacifiCorp 894 16,204 1,727 31,302 3,748 67,933
Panhandle Eastern Corp 424 10,600 977 24,425 1,992 49,800
Parker Hannifin Corp 202 8,004 487 19,297 1,013 40,140
Penney (J C) Co Inc 688 31,132 1,474 66,699 3,097 140,139
Pennzoil Co 130 5,720 253 11,132 637 28,028
Peoples Energy Corp 161 4,387 184 5,014 484 13,189
Phelps Dodge Corp 174 11,027 445 28,202 914 57,925
Pittston Services Group 123 3,121 220 5,583 557 14,134
Polaroid Corp 132 5,759 254 11,081 613 26,742
Potlatch Corp 76 3,012 224 8,876 346 13,710
Price/Costco Inc + 556 9,383 1,212 20,453 2,569 43,352
Providian Corp 351 13,470 619 23,754 1,318 50,578
Public Services Enterprise Group 829 22,798 1,564 43,010 3,205 88,138
Pulte Corp 48 1,296 122 3,294 398 10,746
Raychem Corp 125 5,484 322 14,128 610 26,764
Raytheon Co 362 29,277 800 64,700 1,621 131,098
Republic New York Corp 200 11,250 300 16,875 400 22,500
Reynolds Metals Co 156 9,321 403 24,079 802 47,920
Rite Aid Corp 304 8,512 548 15,344 1,071 29,988
Roadway Services Inc 93 5,115 216 11,880 540 29,700
Rockwell International Corp 661 29,580 1,323 59,204 2,811 125,792
Rohm & Haas Co 169 10,098 439 26,230 873 52,162
Rowan Co Inc + 272 2,210 492 3,998 958 7,784
Russell Corp 173 4,758 220 6,050 556 15,290
Ryan's Family Steak House + 119 893 316 2,370 712 5,340
Ryder System Inc 286 6,936 481 11,664 1,089 26,408
SBC Communication Inc 1,002 50,726 3,756 190,148 8,059 407,987
SCEcorp 1,410 23,441 2,782 46,251 5,904 98,154
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Norfolk Southern Corp 1,371 $ 96,998 2,173 $ 153,740
Northern States Power Co 729 31,074 1,068 45,524
Northrop Grumman Corp 469 28,550 858 52,231
Norwest Corp 3,409 102,696 5,316 160,145
NYNEX Corp 4,462 200,790 7,032 316,440
Occidental Petroleum Corp 3,331 72,449 5,162 112,274
Ogden Corp 506 11,765 744 17,298
Ohio Edison Co 1,578 34,124 2,473 53,479
ONEOK Inc 305 6,672 420 9,188
Outboard Marine Corp 224 4,788 348 7,439
PECO Energy Co 2,309 61,477 3,678 97,927
PNC Bank Corp 2,342 61,478 3,725 97,781
PACCAR Inc 407 20,147 612 30,294
Pacific Enterprises 823 19,752 1,274 30,576
Pacific Gas & Electric Co 4,484 128,915 7,078 203,493
Pacific Telesis Group 4,431 125,730 6,985 198,199
PacifiCorp 2,982 54,049 4,657 84,408
Panhandle Eastern Corp 1,525 38,125 2,361 59,025
Parker Hannifin Corp 752 29,798 1,234 48,897
Penney (J C) Co Inc 2,445 110,636 3,842 173,851
Pennzoil Co 484 21,296 784 34,496
Peoples Energy Corp 377 10,273 536 14,606
Phelps Dodge Corp 738 46,771 1,216 77,064
Pittston Services Group 443 11,241 604 15,327
Polaroid Corp 443 19,326 697 30,407
Potlatch Corp 331 13,116 468 18,545
Price/Costco Inc + 1,991 33,598 3,218 54,304
Providian Corp 984 37,761 1,587 60,901
Public Services Enterprise Group 2,504 68,860 4,054 111,485
Pulte Corp 321 8,667 433 11,691
Raychem Corp 422 18,515 669 29,352
Raytheon Co 1,251 101,175 2,066 167,088
Republic New York Corp 500 28,125 900 50,625
Reynolds Metals Co 686 40,989 1,019 60,885
Rite Aid Corp 839 23,492 1,298 36,344
Roadway Services Inc 387 21,285 618 33,990
Rockwell International Corp 2,231 99,837 3,554 159,042
Rohm & Haas Co 732 43,737 1,070 63,933
Rowan Co Inc + 845 6,866 1,296 10,530
Russell Corp 416 11,440 602 16,555
Ryan's Family Steak House + 579 4,343 839 6,293
Ryder System Inc 797 19,327 1,273 30,870
SBC Communication Inc 6,305 319,191 10,032 507,870
SCEcorp 4,694 78,038 7,204 119,767
</TABLE>
42 43
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
SAFECO Corp 160 $ 10,340 406 $ 26,238 808 $ 52,217
Safety-Kleen Corp 226 3,051 398 5,373 743 10,031
St Paul Co Inc 223 12,098 543 29,458 1,143 62,008
Salomon Inc 369 14,160 636 24,407 1,407 53,994
Santa Fe Energy Resources Inc + 283 2,689 528 5,016 1,155 10,973
Santa Fe Pacific Corp 507 14,386 914 25,935 2,047 58,084
Seagram Co Ltd 1,128 41,736 2,305 85,285 4,955 183,335
Sears Roebuck & Co 1,191 38,559 2,468 79,902 5,130 166,084
Service Corp International 324 11,340 619 21,665 1,270 44,433
Shawmut National Corp 381 12,335 800 25,900 1,717 55,588
Sherwin Williams Co 227 8,144 546 19,588 1,167 41,866
Snap-On Inc 124 5,084 222 9,102 510 20,910
Sonat Inc 328 10,414 523 16,605 1,174 37,275
Southern Co 2,036 43,011 4,122 87,077 8,750 184,844
Springs Industries Inc Class A 31 1,337 80 3,450 312 13,455
Sprint Corp 1,077 38,234 2,157 76,574 4,574 162,377
Stanley Works 129 5,708 326 14,426 634 28,055
Stride Rite Corp 113 1,271 210 2,363 756 8,505
Sun Co Inc 262 6,976 655 17,439 1,425 37,941
Sun Microsystems Inc + 339 19,620 583 33,741 1,272 73,617
SunTrust Banks Inc 290 17,799 706 43,331 1,501 92,124
Super Value Inc 276 8,177 447 13,242 912 27,018
TJX Companies Inc 178 2,225 450 5,625 905 11,313
TRW Inc 163 12,694 434 33,798 841 65,493
Tandem Computers Inc + 375 4,594 693 8,489 1,521 18,632
Tandy Corp 261 16,215 507 31,497 933 57,963
Temple-Inland Inc 147 7,607 394 20,390 752 38,916
Tenet Healthcare Corp + 716 11,367 1,416 22,479 2,660 42,228
Tenneco Inc 521 25,269 1,164 56,454 2,378 115,333
Texaco Inc 754 48,822 1,638 106,061 3,382 218,985
Texas Utilities Co 670 23,283 1,457 50,631 2,989 103,868
Textron Inc 230 15,755 574 39,319 1,106 75,761
Thomas & Betts Corp 33 2,228 82 5,535 245 16,538
Times Mirror Co Class A 348 10,658 740 22,663 1,471 45,049
Timken Co 79 3,565 177 7,987 375 16,922
Torchmark Corp 278 11,120 448 17,920 920 36,800
Toys R Us Inc + 409 10,634 1,761 45,786 3,693 96,018
Transamerica Corp 174 11,832 445 30,260 914 62,152
Travelers Inc 917 44,016 1,971 94,608 4,226 202,848
USX - Marathon Group 902 18,604 1,859 38,342 3,889 80,211
UNUM Corp 183 8,784 477 22,896 954 45,792
USF & G Corp 324 5,873 620 11,238 1,331 24,124
USX - US Steel Group 282 9,236 478 15,655 1,079 35,337
Unicom Corp 649 18,253 1,387 39,009 2,821 79,341
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
SAFECO Corp 689 $ 44,527 990 $ 63,979
Safety-Kleen Corp 610 8,235 926 12,501
St Paul Co Inc 846 45,896 1,396 75,733
Salomon Inc 1,133 43,479 1,758 67,463
Santa Fe Energy Resources Inc + 875 8,313 1,390 13,205
Santa Fe Pacific Corp 1,587 45,031 2,424 68,781
Seagram Co Ltd 3,905 144,485 6,118 226,366
Sears Roebuck & Co 4,071 131,799 6,342 205,322
Service Corp International 1,052 36,820 1,531 53,585
Shawmut National Corp 1,306 42,282 2,091 67,696
Sherwin Williams Co 885 31,749 1,319 47,319
Snap-On Inc 422 17,302 668 27,388
Sonat Inc 862 27,369 1,420 45,085
Southern Co 6,964 147,115 10,903 230,326
Springs Industries Inc Class A 221 9,531 355 15,309
Sprint Corp 3,686 130,853 5,662 201,001
Stanley Works 436 19,293 680 30,090
Stride Rite Corp 532 5,985 821 9,236
Sun Co Inc 1,119 29,793 1,791 47,685
Sun Microsystems Inc + 959 55,502 1,539 89,070
SunTrust Banks Inc 1,178 72,300 1,872 114,894
Super Value Inc 743 22,011 1,107 32,795
TJX Companies Inc 772 9,650 1,140 14,250
TRW Inc 718 55,914 1,048 81,613
Tandem Computers Inc + 1,173 14,369 1,845 22,601
Tandy Corp 806 50,073 1,243 77,221
Temple-Inland Inc 550 28,463 934 48,335
Tenet Healthcare Corp + 2,003 31,798 3,594 57,055
Tenneco Inc 1,926 93,411 2,932 142,202
Texaco Inc 2,742 177,545 4,259 275,770
Texas Utilities Co 2,381 82,740 3,712 128,992
Textron Inc 910 62,335 1,427 97,750
Thomas & Betts Corp 175 11,813 359 24,233
Times Mirror Co Class A 1,221 37,393 1,765 54,053
Timken Co 335 15,117 480 21,660
Torchmark Corp 751 30,040 1,160 46,400
Toys R Us Inc + 2,867 74,542 4,470 116,220
Transamerica Corp 740 50,320 1,193 81,124
Travelers Inc 3,354 160,992 5,309 254,832
USX - Marathon Group 3,129 64,536 4,816 99,330
UNUM Corp 788 37,824 1,188 57,024
USF & G Corp 1,153 20,898 1,807 32,752
USX - US Steel Group 885 28,984 1,284 42,051
Unicom Corp 2,257 63,478 3,552 99,900
</TABLE>
44 45
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Union Camp Corp 172 $ 9,783 443 $ 25,196 887 $ 50,448
Union Carbide Corp 490 17,395 879 31,205 1,829 64,930
Union Electric Co 354 12,611 622 22,159 1,351 48,129
Union Pacific Corp 609 39,890 1,247 81,679 2,732 178,946
Unisys Corp + 523 4,184 1,014 8,112 2,233 17,864
United Healthcare Corp 239 10,098 1,053 44,489 2,255 95,274
U.S. Bancorp 350 10,019 618 17,690 1,249 35,753
United States Surgical 149 3,781 396 10,049 763 19,361
U.S. West Inc 1,344 58,464 2,891 125,759 6,205 269,918
United Technologies Corp 323 26,930 739 61,614 1,669 139,153
Upjohn Co 528 22,374 1,067 45,214 2,291 97,081
U.S. Life Corp 40 1,725 138 5,951 258 11,126
VF Corp 163 8,924 409 22,393 836 45,771
Varity Corp + 127 5,779 225 10,238 512 23,296
Wachovia Corp 525 20,869 1,065 42,334 2,262 89,915
Wells Fargo & Co 122 22,738 367 68,400 808 150,591
Wendy's International Inc 355 6,967 574 11,265 1,351 26,513
Western Atlas Inc + 132 5,990 356 16,154 689 31,263
Westinghouse Electric Corp 594 8,093 2,218 30,220 4,778 65,100
Westvaco Corp 168 7,413 438 19,327 876 38,654
Weyerhaeuser Co 610 28,060 1,323 60,858 2,732 125,672
Whirlpool Corp 180 9,810 501 27,305 973 53,029
Willamette Industries Inc 607 41,731 370 25,438 943 64,831
Williams Co Inc 357 13,075 623 22,817 1,377 50,433
Woolworth Corp 431 5,765 849 11,355 1,793 23,981
Xerox Corp 357 43,108 651 78,608 1,415 170,861
Yellow Corp 49 692 123 1,737 385 5,438
Zenith Electronic Corp + 95 808 192 1,632 503 4,276
Zurn Industries Inc 22 481 46 1,006 224 4,900
LARGE CAP VALUE STOCKS - VALUE $ 5,689,576 $ 12,343,153 $ 26,142,667
- COST $ 4,975,034 $ 10,899,992 $ 22,808,541
MEDIUM CAP GROWTH STOCKS
PERCENT OF NET ASSETS 2.9% 3.0% 3.4%
ADC Telecommunication + 586 $ 22,708 380 $ 14,725 948 $ 36,735
Adaptec Inc + -- -- 300 12,750 700 29,750
Adobe Systems Inc 619 31,569 410 20,910 1,006 51,306
Adtran Inc + -- -- -- -- -- --
Airgas Inc + -- -- -- -- -- --
Allegheny Ludlum Corp 772 16,212 510 10,710 1,186 24,906
Alliance Semiconductor Corp -- -- -- -- -- --
Altera Corp + 460 28,808 260 16,283 718 44,965
America Online Inc -- -- 200 13,175 -- --
American Power Conversion + 1,000 $ 16,750 680 $ 11,390 1,494 $ 25,025
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Union Camp Corp 741 $ 42,144 1,194 $ 67,909
Union Carbide Corp 1,470 52,185 2,261 80,266
Union Electric Co 1,096 39,045 1,605 57,178
Union Pacific Corp 2,191 143,511 3,366 220,473
Unisys Corp + 1,677 13,416 2,685 21,480
United Healthcare Corp 1,823 77,022 2,830 119,568
U.S. Bancorp 989 28,310 1,582 45,285
United States Surgical 557 14,134 919 23,320
U.S. West Inc 4,942 214,977 7,792 338,952
United Technologies Corp 1,293 107,804 2,031 169,335
Upjohn Co 1,759 74,538 2,855 120,981
U.S. Life Corp 264 11,385 389 16,776
VF Corp 613 33,562 1,049 57,433
Varity Corp + 435 19,793 673 30,622
Wachovia Corp 1,828 72,663 2,840 112,890
Wells Fargo & Co 629 117,230 1,076 200,540
Wendy's International Inc 1,043 20,469 1,608 31,557
Western Atlas Inc + 523 23,731 896 40,656
Westinghouse Electric Corp 3,652 49,759 5,725 78,003
Westvaco Corp 729 32,167 1,066 47,037
Weyerhaeuser Co 2,116 97,336 3,360 154,560
Whirlpool Corp 785 42,783 1,244 67,798
Willamette Industries Inc 618 42,488 1,185 81,469
Williams Co Inc 1,020 37,358 1,659 60,761
Woolworth Corp 1,389 18,578 2,096 28,034
Xerox Corp 1,127 136,085 1,770 213,728
Yellow Corp 299 4,223 437 6,173
Zenith Electronic Corp + 496 4,216 791 6,724
Zurn Industries Inc 80 1,750 241 5,272
LARGE CAP VALUE STOCKS - VALUE $ 20,595,797 $ 32,521,921
- COST $ 18,223,488 $ 29,202,617
MEDIUM CAP GROWTH STOCKS
PERCENT OF NET ASSETS 4.3% 5.8%
ADC Telecommunication + 608 $ 23,560 1,360 $ 52,700
Adaptec Inc + 600 25,500 1,100 46,750
Adobe Systems Inc 651 33,201 1,215 61,965
Adtran Inc + -- -- 200 6,250
Airgas Inc + -- -- 400 11,000
Allegheny Ludlum Corp 786 16,506 740 15,540
Alliance Semiconductor Corp -- -- 250 9,781
Altera Corp + 448 28,056 940 58,868
America Online Inc 200 13,175 500 32,938
American Power Conversion + 1,009 $ 16,901 1,460 $ 24,455
</TABLE>
46 47
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Amphenol Corp Class A + -- -- -- -- -- --
Anadarko Petroleum Corp 639 30,512 400 19,100 1,001 47,798
Analog Devices Inc + 801 27,735 530 18,351 1,253 43,385
Apria Healthcare Group Inc + -- -- -- -- -- --
Arrow International Inc -- -- -- -- -- --
Ascend Communication Inc -- -- 200 12,900 -- --
Atmel Corp + 962 30,423 560 17,710 1,566 49,525
AutoZone Inc + 1,000 26,875 800 21,500 1,600 43,000
BMC Software Inc + 556 23,700 440 18,755 766 32,651
Battle Mountain Gold Co 878 8,670 590 5,826 1,345 13,282
Bay Networks Inc + 1,162 55,195 820 38,950 1,750 83,125
Bed Bath & Beyond Inc + -- -- -- -- -- --
Best Buy Co Inc + -- -- -- -- -- --
Betz Labs Inc 296 12,395 240 10,050 427 17,881
BIC Corp -- -- -- -- -- --
Biogen Inc + 359 19,655 280 15,330 491 26,882
Boyd Gaming Corp + -- -- -- -- -- --
Brinker International Inc + 756 12,663 490 8,208 1,171 19,614
Broderbund Software Inc + -- -- 100 7,363 -- --
Cadence Design System Inc + 437 15,841 250 9,063 745 27,006
Callaway Golf Co 596 9,238 480 7,440 1,158 17,949
Cardinal Health Inc 441 23,594 240 12,840 709 37,932
Centocor Inc + 546 6,620 340 4,123 881 10,682
Chiron Corp + 224 20,104 173 15,527 306 27,464
Cirrus Logic Corp + 634 34,553 380 20,710 996 54,282
Cintas Corp + 510 19,253 300 11,325 820 30,955
Circus Circus Entertainment Inc + 929 30,425 630 20,633 1,422 46,571
Clear Channel Communications Inc + -- -- -- -- -- --
Coleman Co Inc + -- -- -- -- -- --
Coltec Industries + -- -- -- -- -- --
Compuware Corp + -- -- 300 6,788 600 13,575
Consolidated Stores Corp + -- -- 300 6,600 100 2,200
Cordis Corp + 165 12,746 140 10,815 243 18,772
Cracker Barrel Old Country Store Inc 649 13,223 410 8,354 1,011 20,599
Credit Acceptance Corp + -- -- -- -- -- --
Crompton & Knowles Corp 550 8,319 340 5,143 885 13,386
Cypress Semiconductor + 400 18,250 220 10,038 682 31,116
Danaher Corp 600 19,800 380 12,540 962 31,746
Dell Computer Corp + 405 31,185 230 17,710 687 52,899
Dentsply International Inc -- -- -- -- -- --
Department 56 Inc + -- -- -- -- -- --
Diebold Inc 340 15,853 260 12,123 471 21,960
Dollar General Corp 602 15,803 375 9,844 955 25,069
Duracell International Inc 600 $ 26,775 400 $ 17,850 700 $ 31,238
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Amphenol Corp Class A + -- -- 400 9,800
Anadarko Petroleum Corp 646 30,847 1,115 53,241
Analog Devices Inc + 831 28,773 1,665 57,651
Apria Healthcare Group Inc + -- -- 700 19,600
Arrow International Inc -- -- 100 4,100
Ascend Communication Inc 200 12,900 400 25,800
Atmel Corp + 988 31,246 1,726 54,585
AutoZone Inc + 1,500 40,313 2,800 75,250
BMC Software Inc + 576 24,552 1,040 44,330
Battle Mountain Gold Co 895 8,838 1,645 16,244
Bay Networks Inc + 1,194 56,715 2,318 110,105
Bed Bath & Beyond Inc + -- -- 400 10,925
Best Buy Co Inc + -- -- 500 13,625
Betz Labs Inc 307 12,856 605 25,334
BIC Corp -- -- 100 3,975
Biogen Inc + 361 19,765 745 40,789
Boyd Gaming Corp + -- -- 500 7,250
Brinker International Inc + 771 12,914 1,530 25,628
Broderbund Software Inc + 200 14,725 300 22,088
Cadence Design System Inc + 465 16,856 840 30,450
Callaway Golf Co 756 11,718 1,116 17,298
Cardinal Health Inc 454 24,289 619 33,117
Centocor Inc + 566 6,863 1,220 14,793
Chiron Corp + 225 20,194 413 37,067
Cirrus Logic Corp + 666 36,297 1,310 71,395
Cintas Corp + 515 19,441 590 22,273
Circus Circus Entertainment Inc + 962 31,506 1,995 65,336
Clear Channel Communications Inc + -- -- 200 14,925
Coleman Co Inc + -- -- 100 3,775
Coltec Industries + -- -- 900 13,500
Compuware Corp + 400 9,050 700 15,838
Consolidated Stores Corp + 500 11,000 1,000 22,000
Cordis Corp + 183 14,137 355 27,424
Cracker Barrel Old Country Store Inc 671 13,672 1,325 26,997
Credit Acceptance Corp + -- -- 300 6,450
Crompton & Knowles Corp 570 8,621 1,030 15,579
Cypress Semiconductor + 412 18,798 885 40,378
Danaher Corp 622 20,526 580 19,140
Dell Computer Corp + 417 32,109 485 37,345
Dentsply International Inc -- -- 400 14,900
Department 56 Inc + 200 8,850 400 17,700
Diebold Inc 341 15,899 625 29,141
Dollar General Corp 618 16,223 980 25,725
Duracell International Inc 700 $ 31,238 1,300 $ 58,013
</TABLE>
48 49
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
EMC Corp + 2,058 42,189 1,320 27,060 3,197 65,539
Eckerd (Jack) Corp Del + -- -- -- -- -- --
Electronic Arts Inc + -- -- 200 7,600 100 3,800
Enron Oil & Gas Co 1,000 23,250 -- -- -- --
Equifax Inc 805 31,294 550 21,381 1,271 49,410
Ethyl Corp 1,031 11,212 810 8,809 2,029 22,065
Fastenal Co -- -- -- -- -- --
Federal Signal Corp 498 10,769 290 6,271 807 17,451
First USA Inc 400 18,400 300 13,800 700 32,200
Forest Labs Inc Class A + 482 21,570 270 12,083 766 34,279
Foundation Health Corp + 609 21,087 382 13,227 965 33,413
Franklin Resources Inc + 896 49,280 600 33,000 1,363 74,965
Freeport McMoRan Inc + 1,529 8,601 980 5,513 2,307 12,977
Gateway 2000 Inc + -- -- -- -- -- --
General Instrument Corp + 600 21,900 500 18,250 900 32,850
General Nutrition Co Inc + -- -- 200 8,350 600 25,050
Georgia Gulf Corp 437 14,476 260 8,613 745 24,678
Glenayre Technologies Inc -- -- 300 19,575 450 29,363
Global Marine Inc + -- -- 800 5,400 2,715 18,326
Green Tree Financial Inc 500 29,125 400 23,300 800 46,600
GTECH Holdings Corp + -- -- 200 5,800 100 2,900
Guidant Corp + -- -- -- -- -- --
HBO & Co -- -- 200 11,000 400 22,000
Harley- Davidson Inc 818 22,700 550 15,263 1,259 34,937
Health Care Property Investors Inc -- -- 200 6,475
HealthCare Compare Corp + 384 14,448 290 10,911 516 19,415
Health Management Associates Inc Class A -- -- 200 6,700 100 3,350
Healthsource Inc + -- -- 200 8,000 -- --
Hillenbrand Industries Inc -- -- 200 5,925 -- --
HON Industries Inc 353 10,414 270 7,965 484 14,278
Hormel Foods Corp -- -- 200 4,800 100 2,400
Hospitality Franchise Systems Inc -- -- 300 14,063 -- --
Houghton Mifflin Co 152 7,429 120 5,865 230 11,241
Humana Inc + 1,200 21,900 1,100 20,075 1,900 34,675
ICN Pharmaceuticals Inc -- -- -- -- -- --
Illinois Central Corp 474 18,190 260 9,978 757 29,050
Infinity Broadcasting Corp Class A + -- -- 200 7,175 600 21,525
Informix Corp + 1,390 38,920 920 25,760 2,218 62,104
Integrated Device Technology Inc + -- -- 200 11,525 400 23,050
International Game Technology 1,397 19,907 900 12,825 2,172 30,951
Intuit Inc + -- -- 200 8,613 -- --
IVAX Corp 930 23,831 640 16,400 1,423 36,464
Jefferson Smurfit Corp + -- -- 800 12,100 1,400 21,175
John Nuveen & Co Inc Class A -- $ -- -- $ -- -- $ --
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
EMC Corp + 2,107 43,194 3,380 69,290
Eckerd (Jack) Corp Del + -- -- 400 14,650
Electronic Arts Inc + 400 15,200 800 30,400
Enron Oil & Gas Co -- -- 700 16,275
Equifax Inc 836 32,500 1,670 64,921
Ethyl Corp 1,308 14,225 1,830 19,901
Fastenal Co 300 9,900 600 19,800
Federal Signal Corp 502 10,856 980 21,193
First USA Inc 600 27,600 1,100 50,600
Forest Labs Inc Class A + 486 21,749 960 42,960
Foundation Health Corp + 626 21,675 886 30,678
Franklin Resources Inc + 913 50,215 1,165 64,075
Freeport McMoRan Inc + 1,557 8,758 3,070 17,269
Gateway 2000 Inc + -- -- 300 7,988
General Instrument Corp + 900 32,850 1,800 65,700
General Nutrition Co Inc + 400 16,700 800 33,400
Georgia Gulf Corp 465 15,403 640 21,200
Glenayre Technologies Inc 300 19,575 750 48,938
Global Marine Inc + 1,700 11,475 3,200 21,600
Green Tree Financial Inc 800 46,600 1,500 87,375
GTECH Holdings Corp + 400 11,600 700 20,300
Guidant Corp + -- -- 300 7,575
HBO & Co 300 16,500 700 38,500
Harley- Davidson Inc 844 23,421 1,690 46,898
Health Care Property Investors Inc 300 9,713 600 19,425
HealthCare Compare Corp + 396 14,900 765 28,783
Health Management Associates Inc Class A 400 13,400 800 26,800
Healthsource Inc + 300 12,000 600 24,000
Hillenbrand Industries Inc 300 8,888 600 17,775
HON Industries Inc 354 10,443 435 12,833
Hormel Foods Corp 400 9,600 800 19,200
Hospitality Franchise Systems Inc 500 23,438 900 42,188
Houghton Mifflin Co 155 7,576 345 16,862
Humana Inc + 1,800 32,850 3,500 63,875
ICN Pharmaceuticals Inc -- -- 926 18,751
Illinois Central Corp 477 18,305 535 20,531
Infinity Broadcasting Corp Class A + 600 21,525 1,250 44,844
Informix Corp + 1,438 40,264 2,880 80,640
Integrated Device Technology Inc + 300 17,288 800 46,100
International Game Technology 1,417 20,192 2,845 40,541
Intuit Inc + 400 17,225 600 25,838
IVAX Corp 963 24,677 2,295 58,809
Jefferson Smurfit Corp + 900 13,613 1,300 19,663
John Nuveen & Co Inc Class A -- $ -- 200 $ 4,725
</TABLE>
50 51
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Jones Apparel Group Inc + -- -- -- -- -- --
KLA Instruments Corp + -- -- 200 17,100 300 25,650
Kohls Corp + 393 18,471 210 9,870 652 30,644
LSI Logic Corp + 1,072 52,796 760 37,430 1,642 80,869
La Quinta Inns Inc -- -- 200 6,000 100 3,000
Laboratory Corp of America Holdings + 660 9,158 418 5,800 1,043 14,472
Lam Research Corp + -- -- 200 12,050 300 18,075
Lancaster Colony Corp 338 11,746 260 9,035 470 16,333
Lear Seating Corp + -- -- -- -- -- --
LIN Broadcasting Corp + 300 38,550 200 25,700 200 25,700
LIN Television Corp + -- -- -- -- -- --
Linear Technology Corp 393 31,833 210 17,010 650 52,650
Loctite Corp 385 18,480 300 14,400 542 26,016
Lone Star Steakhouse & Saloon + -- -- 200 8,025 -- --
Lubrizol Corp 729 22,599 460 14,260 1,117 34,627
Lyondell Petrochemical 876 24,090 580 15,950 1,317 36,218
MGIC Investment Corp 400 22,400 300 16,800 700 39,200
Manpower Inc -- -- 500 14,375 900 25,875
Mark IV Industries Inc 497 11,058 288 6,408 790 17,578
Marvel Entertainment Group Inc + -- -- -- -- -- --
Maxim Integrated Products Inc + -- -- 200 15,250 400 30,500
McCormick & Co Inc 888 19,647 600 13,275 1,355 29,979
McKesson Corp -- -- 200 8,700 400 17,400
Medaphis Corp + -- -- 300 6,938 100 2,313
Mentor Graphics Corp + -- -- 300 5,775 852 16,401
Mercury Financial Corp -- -- 500 11,438 1,200 27,450
Microchip Technology Inc + -- -- 300 11,400 -- --
Micro Warehouse Inc + -- -- 200 9,550 -- --
Mid Atlantic Medical Services + -- -- -- -- -- --
Modine Manufacturing Co 309 9,347 250 7,563 465 14,066
Morrison Restaurants 385 7,556 200 3,925 643 12,619
Multimedia Inc + 401 17,043 220 9,350 684 29,070
Mylan Laboratories 1,303 29,816 870 19,901 1,965 44,949
National Gypsum Co + -- -- 100 5,363 -- --
New World Communications Group Inc + -- -- -- -- -- --
Newmont Gold Co 600 24,900 -- -- -- --
Nine West Group Inc + -- -- -- -- -- --
Noble Affiliates Inc 538 14,862 330 9,116 873 24,117
Nordson Corp 214 12,198 160 9,120 293 16,701
Northwest Airlines Corp Class A + -- -- 500 18,063 700 25,288
Novellus Systems Inc + -- -- 100 7,369 -- --
Office Depot Inc + 1,538 47,870 1,050 32,681 2,442 76,007
Olsten Corp 461 16,711 250 9,063 745 27,006
Omnicom Group 394 $ 24,724 210 $ 13,178 660 $ 41,415
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Jones Apparel Group Inc + -- -- 400 13,900
KLA Instruments Corp + 200 17,100 400 34,200
Kohls Corp + 404 18,988 379 17,813
LSI Logic Corp + 1,312 64,616 2,520 124,110
La Quinta Inns Inc 400 12,000 800 24,000
Laboratory Corp of America Holdings + 684 9,491 937 13,001
Lam Research Corp + 200 12,050 600 36,150
Lancaster Colony Corp 340 11,815 428 14,873
Lear Seating Corp + -- -- 300 8,588
LIN Broadcasting Corp + 300 38,550 500 64,250
LIN Television Corp + -- -- 300 10,950
Linear Technology Corp 405 32,805 775 62,775
Loctite Corp 397 19,056 565 27,120
Lone Star Steakhouse & Saloon + 300 12,038 600 24,075
Lubrizol Corp 742 23,002 1,500 46,500
Lyondell Petrochemical 892 24,530 845 23,238
MGIC Investment Corp 500 28,000 800 44,800
Manpower Inc 700 20,125 1,300 37,375
Mark IV Industries Inc 501 11,147 856 19,046
Marvel Entertainment Group Inc + -- -- 500 7,188
Maxim Integrated Products Inc + 300 22,875 600 45,750
McCormick & Co Inc 905 20,023 1,555 34,404
McKesson Corp 300 13,050 800 34,800
Medaphis Corp + 500 11,563 900 20,813
Mentor Graphics Corp + 600 11,550 1,100 21,175
Mercury Financial Corp 800 18,300 2,100 48,038
Microchip Technology Inc + 400 15,200 700 26,600
Micro Warehouse Inc + 300 14,325 500 23,875
Mid Atlantic Medical Services + -- -- 800 14,900
Modine Manufacturing Co 335 10,134 400 12,100
Morrison Restaurants 398 7,811 575 11,284
Multimedia Inc + 414 17,595 685 29,113
Mylan Laboratories 1,327 30,355 2,652 60,665
National Gypsum Co + 200 10,725 400 21,450
New World Communications Group Inc + -- -- 600 13,950
Newmont Gold Co -- -- 200 8,300
Nine West Group Inc + -- -- 400 17,050
Noble Affiliates Inc 558 15,415 620 17,128
Nordson Corp 208 11,856 285 16,245
Northwest Airlines Corp Class A + 800 28,900 1,500 54,188
Novellus Systems Inc + 200 14,738 300 22,106
Office Depot Inc + 1,567 48,773 2,180 67,853
Olsten Corp 459 16,639 644 23,345
Omnicom Group 405 $ 25,414 779 $ 48,882
</TABLE>
52 53
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Outback Steakhouse Inc + -- -- 200 6,450 100 3,225
Owens-Illinois Inc + -- -- 700 9,538 1,400 19,075
Oxford Health Plans Inc + -- -- 200 9,800 300 14,700
PacifiCare Health Systems Inc Class B + -- -- 100 5,725 -- --
Paging Network Inc + -- -- 200 7,900 -- --
Parametric Technology Corp + 610 33,703 380 20,995 971 53,648
Paychex Inc 505 20,705 290 11,890 802 32,882
Peoplesoft Inc + -- -- -- -- -- --
Perrigo Co + 812 10,962 550 7,425 1,252 16,902
PetSmart Inc + -- -- 300 9,113 700 21,263
Physician Corp of America + -- -- -- -- -- --
Premier Industrial Corp -- -- -- -- -- --
Price (T Rowe) Associates -- -- 200 9,500 -- --
Primadonna Resorts Inc + -- -- -- -- -- --
Promus Hotel Corp + 77 1,588 261 5,383 674 13,901
Qualcomm Inc + -- -- 300 14,625 -- --
RPM Inc 623 12,460 390 7,800 959 19,180
Readers Digest Association Class A 600 27,750 500 23,125 1,000 46,250
Reynolds & Reynolds Co Class A 473 15,195 260 8,353 756 24,287
Rhone-Poulenc Rorer Inc 900 39,825 300 13,275 500 22,125
Rollins Inc 388 9,264 210 5,014 645 15,399
Rouse Co -- -- -- -- -- --
SPS Transaction Services Inc + -- -- -- -- -- --
Safeway Inc + 700 27,563 300 11,813 -- --
Scherer (R P) Corp + -- -- 200 8,600 -- --
Scholastic Inc + -- -- -- -- -- --
Schulman (A) Inc 403 10,680 220 5,830 686 18,179
Schwab (Charles) Corp 939 43,664 635 29,528 1,393 64,775
Sealed Air Corp + -- -- 200 10,550 303 15,983
Sensormatic Electronics 735 15,435 470 9,870 1,123 23,583
Shaw Industries Inc 1,560 23,400 1,030 15,450 2,415 36,225
Simon Property Group Inc -- -- -- -- -- --
Solectron Corp + -- -- 300 10,650 -- --
Sonoco Products 988 26,553 677 18,194 1,500 40,313
Southern National Corp -- -- 600 16,050 1,200 32,100
Southland Corp + -- -- -- -- -- --
Staples Inc + 931 23,857 665 17,041 1,443 36,964
Starbucks Corp + -- -- -- -- -- --
Stop & Shop Co Inc + -- -- 300 7,275 100 2,425
Stratacom Inc + -- -- 300 14,700 -- --
Stryker Corp + 524 21,877 310 12,943 834 34,820
Student Loan Marketing Association 600 32,475 600 32,475 1,000 54,125
Sundstrand Corp 363 24,729 280 19,075 495 33,722
Superior Industries International Inc 322 $ 9,539 260 $ 7,703 454 $ 13,450
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Outback Steakhouse Inc + 400 12,900 700 22,575
Owens-Illinois Inc + 800 10,900 1,500 20,438
Oxford Health Plans Inc + 200 9,800 600 29,400
PacifiCare Health Systems Inc Class B + 200 11,450 400 22,900
Paging Network Inc + 300 11,850 600 23,700
Parametric Technology Corp + 621 34,310 1,185 65,471
Paychex Inc 507 20,787 750 30,750
Peoplesoft Inc + 200 13,800 300 20,700
Perrigo Co + 842 11,367 1,080 14,580
PetSmart Inc + 600 18,225 1,050 31,894
Physician Corp of America + -- -- 800 12,800
Premier Industrial Corp -- -- 600 14,400
Price (T Rowe) Associates 300 14,250 600 28,500
Primadonna Resorts Inc + -- -- 400 8,100
Promus Hotel Corp + 545 11,241 1,055 21,759
Qualcomm Inc + 400 19,500 800 39,000
RPM Inc 629 12,580 1,195 23,900
Readers Digest Association Class A 900 41,625 1,700 78,625
Reynolds & Reynolds Co Class A 476 15,292 950 30,519
Rhone-Poulenc Rorer Inc 400 17,700 1,000 44,250
Rollins Inc 400 9,550 475 11,341
Rouse Co -- -- 700 14,788
SPS Transaction Services Inc + -- -- 200 5,375
Safeway Inc + 300 11,813 600 23,625
Scherer (R P) Corp + 300 12,900 500 21,500
Scholastic Inc + 100 6,125 300 18,375
Schulman (A) Inc 416 11,024 785 20,803
Schwab (Charles) Corp 948 44,082 1,207 56,126
Sealed Air Corp + 218 11,500 400 21,100
Sensormatic Electronics 748 15,708 1,585 33,285
Shaw Industries Inc 1,605 24,075 2,200 33,000
Simon Property Group Inc -- -- 600 14,775
Solectron Corp + 400 14,200 800 28,400
Sonoco Products 1,022 27,466 2,055 55,228
Southern National Corp 1,100 29,425 2,180 58,315
Southland Corp + -- -- 3,100 11,625
Staples Inc + 960 24,600 1,438 36,849
Starbucks Corp + -- -- 400 16,000
Stop & Shop Co Inc + 600 14,550 1,100 26,675
Stratacom Inc + 300 14,700 700 34,300
Stryker Corp + 544 22,712 700 29,225
Student Loan Marketing Association 1,000 54,125 1,800 97,425
Sundstrand Corp 365 24,866 645 43,941
Superior Industries International Inc 331 $ 9,806 410 $ 12,146
</TABLE>
54 55
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Sybase Inc + -- -- 200 6,425 800 25,700
Sybron International Corp + -- -- 200 8,200 -- --
Symantec Corp + 378 10,915 200 5,775 636 18,365
Symbol Technologies Inc + 260 9,035 210 7,298 390 13,553
Synopsys Inc + -- -- 100 5,800 -- --
Talbots Inc -- -- -- -- -- --
Tambrands Inc 397 17,815 210 9,424 654 29,348
Tele-Communications Inc Liberty Media
Group Class A + 190 5,047 906 24,065 2,022 53,708
Tencor Instruments + -- -- 200 8,675 -- --
Teradyne Inc + 776 29,391 420 15,908 1,290 48,859
Thermo Instrument Systems Inc + -- -- -- -- -- --
Thermo Cardiosystems Inc + -- -- -- -- -- --
3Com Corp + 1,000 39,000 800 31,200 1,400 54,600
Tootsie Roll Industries -- -- -- -- -- --
Total System Services Inc -- -- -- -- -- --
TransTexas Gas Corp + -- -- -- -- -- --
TriMas Corp -- -- -- -- -- --
Triton Energy Corp + -- -- 200 10,600 400 21,200
Turner Broadcasting System Inc Class A -- -- 400 12,350 100 3,088
Turner Broadcasting System Inc Class B 900 27,675 700 21,525 1,200 36,900
USG Corp + -- -- -- -- -- --
U.S. Robotics Corp + -- -- 100 14,025 -- --
Unifi Inc 768 19,392 500 12,625 1,182 29,846
Union Texas Petroleum Holdings Inc -- -- 300 5,850 100 1,950
VLSI Technology Inc + -- -- 200 6,600 100 3,300
Valhi Inc -- -- -- -- -- --
Valspar Corp -- -- -- -- -- --
Value Health Inc + 435 15,062 245 8,483 719 24,895
ValuJet Airlines Inc + -- -- -- -- -- --
Varian Associates Inc 377 20,358 290 15,660 535 28,890
Vastar Resources Inc 600 18,750 -- -- -- --
Vencor Inc + -- -- -- -- -- --
Viking Office Products Inc + -- -- 200 7,200 100 3,600
Vishay Intertechnology Inc -- -- 300 12,150 500 20,250
Vornado Realty Trust -- -- -- -- -- --
Western Digital Corp + -- -- 300 6,188 100 2,063
Xilinx Inc + 747 32,028 600 25,725 1,059 45,405
York International Corp 402 17,889 220 9,790 659 29,326
MEDIUM CAP GROWTH STOCKS - VALUE $ 2,345,780 $ 2,145,332 $ 4,084,247
- COST $ 1,776,682 $ 1,761,417 $ 3,232,733
MEDIUM CAP VALUE STOCKS
PERCENT OF NET ASSETS 3.1% 3.1% 3.7%
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Sybase Inc + 600 19,275 1,200 38,550
Sybron International Corp + 300 12,300 500 20,500
Symantec Corp + 361 10,424 800 23,100
Symbol Technologies Inc + 270 9,383 350 12,163
Synopsys Inc + -- -- -- --
Talbots Inc -- -- 300 10,350
Tambrands Inc 409 18,354 885 39,714
Tele-Communications Inc Liberty Media
Group Class A + 1,656 43,987 3,614 95,995
Tencor Instruments + 300 13,013 500 21,688
Teradyne Inc + 800 30,300 1,550 58,706
Thermo Instrument Systems Inc + -- -- 250 6,406
Thermo Cardiosystems Inc + -- -- 200 7,875
3Com Corp + 1,600 62,400 3,000 117,000
Tootsie Roll Industries -- -- 406 16,189
Total System Services Inc -- -- 300 5,850
TransTexas Gas Corp + -- -- 200 3,550
TriMas Corp -- -- 300 6,413
Triton Energy Corp + 300 15,900 800 42,400
Turner Broadcasting System Inc Class A 800 24,700 1,500 46,313
Turner Broadcasting System Inc Class B 1,100 33,825 2,200 67,650
USG Corp + 400 10,850 700 18,988
U.S. Robotics Corp + -- -- 400 56,100
Unifi Inc 782 19,746 1,340 33,835
Union Texas Petroleum Holdings Inc 600 11,700 1,200 23,400
VLSI Technology Inc + 400 13,200 700 23,100
Valhi Inc -- -- 100 775
Valspar Corp -- -- 400 16,000
Value Health Inc + 447 15,477 1,219 42,208
ValuJet Airlines Inc + -- -- 200 5,825
Varian Associates Inc 390 21,060 765 41,310
Vastar Resources Inc -- -- 400 12,500
Vencor Inc + 300 8,888 500 14,813
Viking Office Products Inc + 500 18,000 900 32,400
Vishay Intertechnology Inc 400 16,200 1,020 41,310
Vornado Realty Trust 200 7,425 500 18,563
Western Digital Corp + 500 10,313 1,000 20,625
Xilinx Inc + 774 33,185 1,420 60,883
York International Corp 414 18,423 785 34,933
MEDIUM CAP GROWTH STOCKS - VALUE $ 3,474,209 $ 6,909,224
- COST $ 2,821,638 $ 6,118,056
MEDIUM CAP VALUE STOCKS
PERCENT OF NET ASSETS 4.5% 5.6%
</TABLE>
56 57
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
AFLAC Inc 1,131 $ $46,230 780 $ $31,883 1,678 $ $68,588
Arco Chemical Co 600 28,950 -- -- -- --
AT & T Capital Corp -- -- -- -- -- --
Albemarle Corp 713 11,675 460 7,533 1,112 18,209
Alexander & Baldwin Inc 504 11,466 290 6,598 814 18,519
Alleghany Corp + -- -- -- -- -- --
Allmerica Property & Casualty Co Inc -- -- 400 9,650 100 2,413
Alumax Inc + 489 16,687 280 9,555 773 26,379
AMBAC Inc -- -- 200 8,450 400 16,900
American Financial Group Inc 504 15,561 290 8,954 813 25,101
American National Insurance Co -- -- -- -- -- --
American Re Corp -- -- 300 12,000 600 24,000
American Standard Co Inc + -- -- -- -- -- --
American Water Works Co Inc -- -- -- -- -- --
AmSouth Bancorp -- -- 300 11,213 800 29,900
Aon Corp 1,090 42,510 760 29,640 1,660 64,740
Apache Corp 662 19,281 420 12,233 1,049 30,552
Argonaut Group Inc -- -- -- -- -- --
Arrow Electronics Inc + 493 26,745 296 16,058 799 43,346
Avnet Inc 430 22,145 250 12,875 714 36,771
Bandag Inc -- -- -- -- -- --
Bandag Inc Class A -- -- -- -- -- --
Bank South Corp -- -- 300 6,844 100 2,281
Bankers Life Holding Corp -- -- -- -- -- --
Barnes & Noble + -- -- -- -- -- --
BayBanks Inc -- -- 100 8,025 200 16,050
Bear Stearns & Co Inc 1,360 28,050 829 17,098 2,058 42,446
Beckman Instruments Inc 294 8,416 250 7,156 450 12,881
Bergen Brunswig Corp Class A 20 418 16 334 29 605
Bob Evans Farms Inc 468 8,366 260 4,648 752 13,442
Boise Cascade Office Products Corp + -- -- -- -- -- --
Bowater Inc 395 18,861 210 10,028 652 31,133
Burlington Industries Inc + 729 9,021 477 5,903 1,136 14,058
CBI Industries 406 9,947 220 5,390 689 16,881
CNA Financial Corp + 400 38,350 100 9,588 -- --
Cabot Corp 405 19,491 220 10,588 686 33,014
Capital One Financial Corp -- -- 400 10,400 900 23,400
Caremark International Inc + -- -- 400 8,300 1,000 20,750
Case Corp -- -- -- -- -- --
Central Fidelity Banks Inc 417 13,657 230 7,533 700 22,925
Chesapeake Corp 256 9,312 200 7,275 361 13,131
Chris-Craft Industries Inc + 304 13,680 247 11,115 465 20,925
Cincinnati Financial Corp 400 20,800 320 16,640 600 31,200
Clayton Homes Inc 817 $ 19,302 550 $ 12,994 1,245 $ 29,413
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
AFLAC Inc 1,158 $ $47,333 2,285 $ $93,399
Arco Chemical Co -- -- 200 9,650
AT & T Capital Corp -- -- 100 3,163
Albemarle Corp 732 11,987 1,186 19,421
Alexander & Baldwin Inc 509 11,580 980 22,295
Alleghany Corp + -- -- 100 16,925
Allmerica Property & Casualty Co Inc 700 16,888 1,400 33,775
Alumax Inc + 493 16,824 670 22,864
AMBAC Inc 300 12,675 800 33,800
American Financial Group Inc 508 15,685 580 17,908
American National Insurance Co -- -- 200 11,475
American Re Corp 400 16,000 1,000 40,000
American Standard Co Inc + -- -- 300 8,288
American Water Works Co Inc 300 8,963 500 14,938
AmSouth Bancorp 500 18,688 1,100 41,113
Aon Corp 1,125 43,875 2,050 79,950
Apache Corp 684 19,922 1,235 35,969
Argonaut Group Inc -- -- 200 6,100
Arrow Electronics Inc + 510 27,668 875 47,469
Avnet Inc 459 23,639 815 41,973
Bandag Inc -- -- 200 11,875
Bandag Inc Class A 200 10,975 300 16,463
Bank South Corp 700 15,969 1,200 27,375
Bankers Life Holding Corp -- -- 500 9,500
Barnes & Noble + -- -- 300 11,738
BayBanks Inc 200 16,050 400 32,100
Bear Stearns & Co Inc 1,396 28,793 2,302 47,479
Beckman Instruments Inc 305 8,731 680 19,465
Bergen Brunswig Corp Class A 420 8,768 800 16,700
Bob Evans Farms Inc 472 8,437 950 16,981
Boise Cascade Office Products Corp + -- -- 100 2,838
Bowater Inc 407 19,434 675 32,231
Burlington Industries Inc + 749 9,269 1,302 16,112
CBI Industries 419 10,266 695 17,028
CNA Financial Corp + 100 9,588 200 19,175
Cabot Corp 416 20,020 795 38,259
Capital One Financial Corp 600 15,600 800 20,800
Caremark International Inc + 800 16,600 1,600 33,200
Case Corp -- -- 400 15,100
Central Fidelity Banks Inc 430 14,083 805 26,364
Chesapeake Corp 266 9,676 450 16,369
Chris-Craft Industries Inc + 316 14,220 214 9,630
Cincinnati Financial Corp 600 31,200 1,115 57,980
Clayton Homes Inc 845 $ 19,963 1,081 $ 25,539
</TABLE>
58 59
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Coca-Cola Enterprises 1,412 32,653 910 21,044 2,188 50,598
Comdisco Inc 411 12,536 230 7,015 694 21,167
Comerica Inc 1,289 45,921 810 28,856 2,013 71,713
Commerce Bancshares Inc -- -- 200 7,175 -- --
Compass Bankshares Inc -- -- 200 6,000 100 3,000
Comsat Corp 510 11,858 300 6,975 819 19,042
Conseco Inc -- -- 200 10,050 -- --
Consolidated Papers Inc 486 29,403 280 16,940 770 46,585
Countrywide Credit & Industries Inc -- -- 500 11,000 1,200 26,400
Cox Communications Inc Class A + 213 4,207 274 5,412 1,094 21,607
Crestar Financial Corp 402 22,663 220 12,403 685 38,617
Dauphin Deposit Corp 360 9,900 270 7,425 492 13,530
Dean Foods Co 424 11,236 240 6,360 707 18,736
Diamond Shamrock R&M Inc 304 8,094 250 6,656 435 11,582
Dime Bancorp Inc + -- -- 700 8,488 100 1,213
Dole Food Inc 646 21,157 410 13,428 1,008 33,012
Ensco International Inc + -- -- -- -- -- --
Edwards A G & Sons Inc 655 15,966 420 10,238 1,017 24,789
Equitable Co Inc 900 23,175 400 10,300 900 23,175
Equitable of Iowa Co -- -- 200 7,450 -- --
Equity Residential Properties Trust -- -- -- -- -- --
FHP International Corp + 424 10,494 240 5,940 703 17,399
Federated Department Stores Inc + 900 24,300 800 21,600 1,500 40,500
Ferro Corp 305 8,235 250 6,750 436 11,772
Fifth Third Bancorp 663 37,294 430 24,188 1,051 59,119
Fina Inc Class A -- -- -- -- -- --
Finova Group Inc -- -- 200 8,150 -- --
First American Corp - Tennessee -- -- 200 8,550 -- --
First America Bank Corp 647 28,630 410 18,143 1,009 44,648
First Bank System Inc 1,266 57,761 990 45,169 1,989 90,748
First Brands Corp 243 10,601 190 8,289 347 15,138
First Colony Corp -- -- -- -- -- --
First Empire State Corp -- -- -- -- -- --
First Financial Management Corp 662 59,663 420 37,853 1,049 94,541
First Hawaiian Inc -- -- -- -- -- --
First Security Corp 516 16,254 320 10,080 850 26,775
First Tennessee National Corp 354 18,762 270 14,310 485 25,705
First Virginia Banks Inc 359 14,764 280 11,515 491 20,192
Firstar Corp -- -- 300 11,138 800 29,700
Fiserv Inc + 417 11,885 230 6,555 699 19,922
Firstmerit Corp -- -- -- -- -- --
FlightSafety International Inc 356 15,798 270 11,981 487 21,611
Food Lion Inc Class B -- -- 1,200 6,900 200 1,150
Food Lion Inc Class A -- $ -- 1,400 $ 8,050 3,300 $ 18,975
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Coca-Cola Enterprises 1,448 33,485 1,555 35,959
Comdisco Inc 424 12,932 595 18,148
Comerica Inc 1,323 47,132 2,640 94,050
Commerce Bancshares Inc 400 14,350 800 28,700
Compass Bankshares Inc 400 12,000 700 21,000
Comsat Corp 514 11,951 990 23,018
Conseco Inc 300 15,075 500 25,125
Consolidated Papers Inc 490 29,645 570 34,485
Countrywide Credit & Industries Inc 800 17,600 2,000 44,000
Cox Communications Inc Class A + 727 14,358 1,049 20,718
Crestar Financial Corp 415 23,396 785 44,254
Dauphin Deposit Corp 362 9,955 645 17,738
Dean Foods Co 437 11,581 905 23,983
Diamond Shamrock R&M Inc 330 8,786 415 11,049
Dime Bancorp Inc + 1,100 13,338 2,100 25,463
Dole Food Inc 668 21,877 825 27,019
Ensco International Inc + -- -- 1,000 18,000
Edwards A G & Sons Inc 677 16,502 1,225 29,859
Equitable Co Inc 600 15,450 1,600 41,200
Equitable of Iowa Co 300 11,175 600 22,350
Equity Residential Properties Trust -- -- 200 5,900
FHP International Corp + 436 10,791 909 22,498
Federated Department Stores Inc + 1,400 37,800 2,800 75,600
Ferro Corp 331 8,937 615 16,605
Fifth Third Bancorp 686 38,588 1,035 58,219
Fina Inc Class A -- -- 100 4,625
Finova Group Inc 300 12,225 600 24,450
First American Corp - Tennessee 300 12,825 600 25,650
First America Bank Corp 669 29,603 1,425 63,056
First Bank System Inc 1,584 72,270 3,020 137,788
First Brands Corp 252 10,994 530 23,121
First Colony Corp 400 9,800 700 17,150
First Empire State Corp 100 18,300 100 18,300
First Financial Management Corp 684 61,646 1,335 120,317
First Hawaiian Inc -- -- 400 11,150
First Security Corp 535 16,853 1,100 34,650
First Tennessee National Corp 350 18,550 740 39,220
First Virginia Banks Inc 361 14,846 745 30,638
Firstar Corp 500 18,563 1,300 48,263
Fiserv Inc + 429 12,227 795 22,658
Firstmerit Corp 100 2,675 600 16,050
FlightSafety International Inc 357 15,842 445 19,747
Food Lion Inc Class B 2,100 12,075 3,800 21,850
Food Lion Inc Class A 2,100 $ 12,075 5,200 $ 29,900
</TABLE>
60 61
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Fort Howard Corp + -- -- -- -- -- --
Fourth Financial Corp -- -- 200 7,100 -- --
Franchise Finance Corp -- -- -- -- -- --
GATX Corp 223 11,512 170 8,776 302 15,591
GEICO Corp 400 27,300 300 20,475 200 13,650
Gaylord Entertainment Co Class A -- -- -- -- -- --
Genentech Inc + 100 4,713 300 14,138 600 28,275
General Motors Corp Class E 2,788 129,991 1,530 71,336 4,291 200,068
General Motors Corp Class H 700 27,913 600 23,925 1,100 43,863
Genzyme Corp - General Division + 263 14,695 210 11,734 367 20,506
Glatfelter (P H) Co 486 10,935 280 6,300 769 17,303
Greenpoint Financial Corp -- -- 300 8,325 100 2,775
Hanna (M A) Co 387 10,836 200 5,600 645 18,060
Hannaford Brothers Co 436 11,173 260 6,663 745 19,091
Harsco Corp 269 15,064 210 11,760 374 20,944
Hartford Steam Boiler Inspection 230 10,666 180 8,348 309 14,330
Hawaiian Electric Industries Inc 292 10,549 240 8,670 423 15,281
Healthsouth Corp + 608 14,364 400 9,450 1,020 24,098
Health Care & Retirement Corp + -- -- 200 6,300 -- --
Health & Retire Property Trust -- -- -- -- -- --
Heilig-Meyers Co 524 11,528 310 6,820 834 18,348
Hibernia Corp Class A -- -- 700 7,000 200 2,000
Hillhaven Corp + -- -- -- -- -- --
Host Marriot Corp + -- -- 800 9,200 1,900 21,850
Hubbell Inc Class B 366 21,457 283 16,591 504 29,547
Huntington Bancshares Inc 1,050 23,100 850 18,700 1,670 36,740
IBP Inc 516 25,413 310 15,268 826 40,681
IMC Fertilizer Group 309 19,544 250 15,813 465 29,411
Integra Financial Corp -- -- 200 11,225 400 22,450
International Specialty Products Inc -- -- -- -- -- --
ITEL Corp + -- -- 200 7,550 -- --
Kansas City Southern Industries 481 21,164 270 11,880 765 33,660
Kelly Services Inc Class A 406 11,673 220 6,325 689 19,809
Kemper Corp 363 17,424 290 13,920 520 24,960
Kennametal Inc -- -- 200 7,600 411 15,618
Keystone International Inc 383 7,708 200 4,025 641 12,900
Kimco Realty Corp -- -- -- -- -- --
Komag Inc + -- -- 200 12,450 -- --
LTV Corp -- -- 700 10,938 1,300 20,313
Lafarge Corp -- -- -- -- -- --
Leggett & Platt Inc 429 20,753 250 12,094 737 35,652
Lehman Brothers Holdings -- -- 700 16,625 1,300 30,875
Leucadia National Corp -- -- -- -- -- --
Litton Industries Inc + 501 $ 19,414 290 $ 11,238 808 $ 31,310
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Fort Howard Corp + -- -- 700 11,025
Fourth Financial Corp 300 10,650 600 21,300
Franchise Finance Corp -- -- 200 4,250
GATX Corp 217 11,203 410 21,166
GEICO Corp 300 20,475 500 34,125
Gaylord Entertainment Co Class A -- -- 515 14,291
Genentech Inc + 600 28,275 1,100 51,838
General Motors Corp Class E 2,876 134,094 3,600 167,850
General Motors Corp Class H 1,100 43,863 2,000 79,750
Genzyme Corp - General Division + 272 15,198 150 8,381
Glatfelter (P H) Co 489 11,003 570 12,825
Greenpoint Financial Corp 500 13,875 1,000 27,750
Hanna (M A) Co 400 11,200 575 16,100
Hannaford Brothers Co 465 11,916 640 16,400
Harsco Corp 279 15,624 560 31,360
Hartford Steam Boiler Inspection 224 10,388 420 19,478
Hawaiian Electric Industries Inc 303 10,946 580 20,953
Healthsouth Corp + 660 15,593 830 19,609
Health Care & Retirement Corp + 300 9,450 700 22,050
Health & Retire Property Trust 600 9,225 1,100 16,913
Heilig-Meyers Co 544 11,968 1,000 22,000
Hibernia Corp Class A 1,200 12,000 2,300 23,000
Hillhaven Corp + -- -- 400 11,150
Host Marriot Corp + 1,200 13,800 2,600 29,900
Hubbell Inc Class B 367 21,515 551 32,302
Huntington Bancshares Inc 1,545 33,990 2,990 65,780
IBP Inc 521 25,659 1,000 49,250
IMC Fertilizer Group 335 21,189 500 31,625
Integra Financial Corp 300 16,838 500 28,063
International Specialty Products Inc -- -- 400 3,550
ITEL Corp + 200 7,550 500 18,875
Kansas City Southern Industries 485 21,340 560 24,640
Kelly Services Inc Class A 419 12,046 785 22,569
Kemper Corp 365 17,520 645 30,960
Kennametal Inc 300 11,400 500 19,000
Keystone International Inc 396 7,970 665 13,383
Kimco Realty Corp -- -- 300 12,188
Komag Inc + 200 12,450 400 24,900
LTV Corp 900 14,063 2,200 34,375
Lafarge Corp -- -- 400 8,450
Leggett & Platt Inc 442 21,382 815 39,426
Lehman Brothers Holdings 900 21,375 2,300 54,625
Leucadia National Corp 200 10,650 300 15,975
Litton Industries Inc + 503 $ 19,491 579 $ 22,436
</TABLE>
62 63
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Longview Fibre Co 554 8,933 340 5,483 890 14,351
MBIA Inc 300 20,400 300 20,400 400 27,200
MFS Communications Inc + -- -- -- -- -- --
MGM Grand Inc + -- -- -- -- -- --
Manville Corp + -- -- -- -- -- --
MAPCO Inc 337 17,987 260 13,878 468 24,980
Marshall & Ilsley Corp 1,058 26,715 740 18,685 1,603 40,476
Martin Mareitta Inc -- -- -- -- -- --
Mascotech Inc -- -- -- -- -- --
Media General Inc Class A 280 10,080 220 7,920 410 14,760
Meditrust Corp -- -- 200 6,575 500 16,438
Mercantile Bancorporation 436 19,729 270 12,218 769 34,797
Mercantile Bankshares 503 13,392 290 7,721 813 21,646
Mercury General Corp -- -- -- -- -- --
Meridian Bancorp Inc 635 25,479 390 15,649 997 40,005
Michigan National Corp -- -- 100 10,756 -- --
Midlantic Corp Inc -- -- 300 15,450 700 36,050
Mirage Resorts Inc + 995 34,203 680 23,375 1,489 51,184
Molex Inc 851 36,593 575 24,725 1,311 56,373
Molex Inc Class A -- -- 300 11,850 500 19,750
Morgan Stanley Group 874 75,929 270 23,456 1,291 112,156
Murphy Oil Corp 493 19,967 280 11,340 777 31,469
NGC Corp -- -- -- -- -- --
Nabisco Holdings Corp Class A -- -- 200 5,725 100 2,863
New Plan Realty Trust -- -- 300 6,675 100 2,225
Northern Trust Corp 567 25,515 360 16,200 928 41,760
Officemax Inc + -- -- -- -- -- --
Ohio Casualty Corp -- -- 200 6,650 -- --
Old Kent Financial Corp -- -- 215 8,197 625 23,828
Old National Bancorp -- -- -- -- -- --
Old Republic International Corp -- -- 200 5,525 100 2,763
Olin Corp 235 15,187 180 11,633 339 21,908
PHH Corp 178 7,765 150 6,544 257 11,212
PMI Group Inc -- -- 200 8,900 -- --
PacifiCare Health Systems Inc Class A + 289 15,823 240 13,140 420 22,995
Painewebber Group Inc -- -- 700 13,475 1,300 25,025
Paul Revere Corp -- -- -- -- -- --
Policy Management Systems Corp + 248 12,276 170 8,415 303 14,999
Progressive Corp Ohio 782 34,701 520 23,075 1,197 53,117
Provident Life & Accident Insurance Class B 497 12,984 290 7,576 806 21,057
Quantum Corp + -- -- 300 7,200 790 18,960
Questar Corp 427 13,024 240 7,320 710 21,655
Quorom Health Group Inc + -- -- -- -- -- --
RJR Nabisco Holdings Corp 1,370 $ 39,045 1,543 $ 43,976 2,305 $ 65,693
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Longview Fibre Co 575 9,272 930 14,996
MBIA Inc 400 27,200 800 54,400
MFS Communications Inc + 200 8,850 400 17,700
MGM Grand Inc + -- -- 300 7,500
Manville Corp + -- -- 500 7,375
MAPCO Inc 338 18,041 500 26,688
Marshall & Ilsley Corp 1,083 27,346 2,120 53,530
Martin Mareitta Inc -- -- 200 3,800
Mascotech Inc -- -- 600 7,875
Media General Inc Class A 290 10,440 370 13,320
Meditrust Corp 500 16,438 900 29,588
Mercantile Bancorporation 464 20,996 1,040 47,060
Mercantile Bankshares 508 13,526 980 26,093
Mercury General Corp -- -- 200 7,550
Meridian Bancorp Inc 642 25,760 1,305 52,363
Michigan National Corp 100 10,756 200 21,513
Midlantic Corp Inc 400 20,600 700 36,050
Mirage Resorts Inc + 1,004 34,513 1,435 49,328
Molex Inc 880 37,840 418 17,974
Molex Inc Class A 300 11,850 900 35,550
Morgan Stanley Group 891 77,406 1,045 90,784
Murphy Oil Corp 497 20,129 970 39,285
NGC Corp -- -- 200 1,900
Nabisco Holdings Corp Class A -- -- 600 17,175
New Plan Realty Trust 600 13,350 1,100 24,475
Northern Trust Corp 588 26,460 1,265 56,925
Officemax Inc + -- -- 600 14,100
Ohio Casualty Corp 300 9,975 600 19,950
Old Kent Financial Corp 420 16,013 1,030 39,269
Old National Bancorp 200 6,850 500 17,125
Old Republic International Corp 500 13,813 1,000 27,625
Olin Corp 229 14,799 530 34,251
PHH Corp 197 8,594 375 16,359
PMI Group Inc 200 8,900 500 22,250
PacifiCare Health Systems Inc Class A + 300 16,425 180 9,855
Painewebber Group Inc 900 17,325 2,200 42,350
Paul Revere Corp -- -- 100 1,750
Policy Management Systems Corp + 258 12,771 340 16,830
Progressive Corp Ohio 797 35,367 850 37,719
Provident Life & Accident Insurance Class B 501 13,089 380 9,928
Quantum Corp + 485 11,640 900 21,600
Questar Corp 440 13,420 730 22,265
Quorom Health Group Inc + -- -- 500 10,625
RJR Nabisco Holdings Corp 2,451 $ 69,854 4,718 $ 134,463
</TABLE>
64 65
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Ranger Oil Ltd -- -- -- -- 1,508 8,671
Rayonier Inc 256 9,824 250 9,594 462 17,729
Read-Rite Corp + -- -- 300 12,263 -- --
Readers Digest Association Class B -- -- 200 8,400 -- --
Regions Financial 435 17,509 250 10,063 719 28,940
Reliastar Financial Corp -- -- 200 7,600 -- --
Revco DS Inc + -- -- 300 5,925 100 1,975
Riverwood International Group -- -- -- -- -- --
St Joe Paper Co -- -- -- -- -- --
Scripps (E W) Co 600 20,175 200 6,725 100 3,363
Seagate Technology Inc + 778 34,524 510 22,631 1,193 52,939
Security Capital Pacific Trust -- -- 400 7,400 100 1,850
Signet Banking Corp -- -- 400 10,450 100 2,613
Southern Pacific Rail Corp + 900 22,050 400 9,800 100 2,450
SouthTrust Corp 871 22,537 580 15,008 1,337 34,595
Spelling Entertainment Group Inc + -- -- -- -- -- --
Standard Fed Bancorp -- -- 200 7,800 100 3,900
Star Banc Corp -- -- 200 10,600 -- --
State Street Boston Corp 819 30,201 550 20,281 1,285 47,384
Stewart & Stevenson Services 364 11,603 280 8,925 495 15,778
Storage Technology Corp + 559 15,303 335 9,171 884 24,200
Stratus Computer Inc + 261 7,308 210 5,880 366 10,248
Sunamerica Inc + -- -- 200 11,950 300 17,925
Sunbeam-Oster Co Inc -- -- -- -- -- --
Sungard Data Systems Inc + -- -- 300 8,325 100 2,775
Synovus Financial Corp -- -- 400 10,200 1,000 25,500
TIG Holdings Inc -- -- 300 7,688 900 23,063
Tecumseh Products Co Class A 241 11,689 190 9,215 345 16,733
Tele-Communications International Inc
Class A + -- -- -- -- -- --
Terra Industries Inc -- -- -- -- -- --
Thermo Electron Corp + 822 35,449 551 23,762 1,268 54,683
Tidewater Inc 565 13,984 350 8,663 925 22,894
Tosco Corp 357 11,469 280 8,995 489 15,709
Transatlantic Holdings Inc 251 17,570 200 14,000 355 24,850
Trinity Industries Inc 422 13,662 240 7,770 705 22,824
Tyson Foods Inc Class A 1,594 41,046 1,060 27,295 2,474 63,706
UAL Corp + -- -- 100 15,750 100 15,750
UJB Financial Corp 603 20,879 370 12,811 939 32,513
Ultramar Corp -- -- 200 4,725 100 2,363
Union Bank -- -- -- -- -- --
Union Planters Corp -- -- 200 5,925 100 2,963
United Asset Management Corp -- -- 200 7,800 -- --
Unitrin Inc -- $ -- 300 $ 14,100 400 $ 18,800
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Ranger Oil Ltd 1,103 6,342 -- --
Rayonier Inc 326 12,510 619 23,754
Read-Rite Corp + 500 20,438 900 36,788
Readers Digest Association Class B 200 8,400 500 21,000
Regions Financial 464 18,676 940 37,835
Reliastar Financial Corp 400 15,200 700 26,600
Revco DS Inc + 500 9,875 900 17,775
Riverwood International Group -- -- 300 7,800
St Joe Paper Co -- -- 200 12,250
Scripps (E W) Co 300 10,088 600 20,175
Seagate Technology Inc + 793 35,189 1,550 68,781
Security Capital Pacific Trust 600 11,100 1,100 20,350
Signet Banking Corp 700 18,288 1,300 33,963
Southern Pacific Rail Corp + 500 12,250 900 22,050
SouthTrust Corp 887 22,951 1,735 44,893
Spelling Entertainment Group Inc + -- -- 300 3,938
Standard Fed Bancorp 400 15,600 700 27,300
Star Banc Corp 300 15,900 600 31,800
State Street Boston Corp 850 31,344 1,790 66,006
Stewart & Stevenson Services 365 11,634 645 20,559
Storage Technology Corp + 567 15,522 1,125 30,797
Stratus Computer Inc + 271 7,588 550 15,400
Sunamerica Inc + 300 17,925 400 23,900
Sunbeam-Oster Co Inc -- -- 400 6,450
Sungard Data Systems Inc + 400 11,100 800 22,200
Synovus Financial Corp 600 15,300 1,600 40,800
TIG Holdings Inc 500 12,813 1,000 25,625
Tecumseh Products Co Class A 249 12,077 331 16,054
Tele-Communications International Inc
Class A + -- -- 400 6,250
Terra Industries Inc -- -- 800 10,700
Thermo Electron Corp + 844 36,398 1,742 75,124
Tidewater Inc 585 14,479 665 16,459
Tosco Corp 359 11,533 645 20,721
Transatlantic Holdings Inc 260 18,200 240 16,800
Trinity Industries Inc 435 14,083 905 29,299
Tyson Foods Inc Class A 1,649 42,462 1,630 41,973
UAL Corp + 100 15,750 300 47,250
UJB Financial Corp 614 21,260 1,279 44,285
Ultramar Corp 400 9,450 800 18,900
Union Bank -- -- 200 10,250
Union Planters Corp 400 11,850 900 26,663
United Asset Management Corp 300 11,700 600 23,400
Unitrin Inc 300 $ 14,100 700 $ 32,900
</TABLE>
66 67
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Universal Corp 381 8,573 200 4,500 639 14,378
Universal Foods Corp 279 8,858 220 6,985 409 12,986
Valero Energy Corp 480 10,980 270 6,176 764 17,477
Vons Co Inc + 480 10,740 270 6,041 764 17,095
Vulcan Materials Co -- -- 300 15,788 400 21,050
Washington Federal Inc -- -- 200 4,650 100 2,325
Washington Mutual Inc -- -- 400 10,350 900 23,288
Washington Post Co Class B 127 36,497 100 28,738 180 51,728
Weingarten Realty Investors -- -- -- -- -- --
Weis Markets Inc -- -- -- -- -- --
Wellman Inc 363 9,257 280 7,140 495 12,623
West One Bancorp 381 15,573 300 12,263 539 22,032
Western National Corp -- -- -- -- -- --
Wheelabrator Technologies Inc + 1,200 18,750 500 7,813 100 1,563
Wilmingtion Trust Corp 392 11,956 210 6,405 649 19,795
Witco Corp 616 20,482 380 12,635 952 31,654
Xtra Corp -- -- -- -- -- --
Zurich Reinsurance Centre Holdings Inc + -- -- -- -- -- --
MEDIUM CAP VALUE STOCKS - VALUE $ 2,515,195 $ 2,195,720 $ 4,351,948
- COST $ 2,111,602 $ 1,876,987 $ 3,722,606
MEDIUM CAP UTILITY STOCKS
PERCENT OF NET ASSETS 1.0% 0.9% 1.0%
AES Corp + 784 $ 14,504 640 $ 11,840 1,148 $ 21,238
Allegheny Power System Inc 1,284 31,298 1,010 24,619 1,809 44,094
Atlanta Gas Light Co 269 9,919 220 8,113 399 14,713
Atlantic Energy Inc 569 10,811 460 8,740 830 15,770
Brooklyn Union Gas Co 510 12,814 400 10,050 719 18,065
CMS Energy Corp 921 22,680 740 18,223 1,314 32,357
Century Telephone Enterprise 567 15,805 460 12,823 828 23,081
Delmarva Power & Light Co 640 13,920 510 11,093 903 19,640
El Paso Natural Gas Co 398 11,194 320 9,000 556 15,638
Florida Progress Corp 1,015 30,831 800 24,300 1,434 43,558
Frontier Corp 783 21,826 630 17,561 1,122 31,276
Idaho Power Co 402 10,603 320 8,440 585 15,429
Illinova Corp 813 20,427 650 16,331 1,153 28,969
IPALCO Enterprises Inc 405 14,023 320 11,080 588 20,360
Kansas City Power & Light Co 667 14,924 530 11,859 955 21,368
LG&E Energy Corp 364 14,105 280 10,850 496 19,220
MCN Corp 616 11,396 500 9,250 930 17,205
Midamerican Energy Co + 451 6,427 367 5,230 680 9,690
Minnesota Power & Light Co 349 9,379 270 7,256 480 12,900
Mobile Telecommunication Technologies Corp + -- $ -- 400 $ 12,300 -- $ --
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Universal Corp 394 8,865 765 17,213
Universal Foods Corp 289 9,176 570 18,098
Valero Energy Corp 484 11,072 960 21,960
Vons Co Inc + 484 10,830 560 12,530
Vulcan Materials Co 300 15,788 700 36,838
Washington Federal Inc 500 11,625 900 20,925
Washington Mutual Inc 500 12,938 1,400 36,225
Washington Post Co Class B 133 38,221 25 7,184
Weingarten Realty Investors 200 7,175 500 17,938
Weis Markets Inc -- -- 200 5,650
Wellman Inc 365 9,308 645 16,448
West One Bancorp 394 16,105 765 31,269
Western National Corp -- -- 700 8,750
Wheelabrator Technologies Inc + 1,000 15,625 1,800 28,125
Wilmingtion Trust Corp 404 12,322 775 23,638
Witco Corp 622 20,682 1,195 39,734
Xtra Corp 200 8,850 400 17,700
Zurich Reinsurance Centre Holdings Inc + -- -- 200 5,900
MEDIUM CAP VALUE STOCKS - VALUE $ 3,582,181 $ 6,661,188
- COST $ 3,103,214 $ 6,042,491
MEDIUM CAP UTILITY STOCKS
PERCENT OF NET ASSETS 1.0% 0.6%
AES Corp + 798 $ 14,763 750 $ 13,875
Allegheny Power System Inc 1,319 32,151 1,230 29,981
Atlanta Gas Light Co 279 10,288 260 9,588
Atlantic Energy Inc 590 11,210 550 10,450
Brooklyn Union Gas Co 514 12,914 490 12,311
CMS Energy Corp 954 23,492 885 21,793
Century Telephone Enterprise 588 16,391 565 15,749
Delmarva Power & Light Co 648 14,094 615 13,376
El Paso Natural Gas Co 411 11,559 385 10,828
Florida Progress Corp 1,039 31,560 980 29,768
Frontier Corp 797 22,216 750 20,906
Idaho Power Co 415 10,946 385 10,154
Illinova Corp 843 21,180 780 19,598
IPALCO Enterprises Inc 418 14,473 385 13,331
Kansas City Power & Light Co 690 15,439 645 14,432
LG&E Energy Corp 366 14,183 345 13,369
MCN Corp 670 12,395 600 11,100
Midamerican Energy Co + 489 6,968 -- --
Minnesota Power & Light Co 350 9,406 335 9,003
Mobile Telecommunication Technologies Corp + -- $ -- -- $ --
</TABLE>
68 69
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Montana Power Co 563 12,386 460 10,120 824 18,128
NIPSCO Industries Inc 702 22,991 560 18,340 1,015 33,241
National Fuel Gas Co 400 11,250 320 9,000 582 16,369
Nevada Power Co 444 9,047 360 7,335 652 13,285
New England Electric System 695 24,325 560 19,600 1,008 35,280
New York State Electric & Gas 772 18,625 610 14,716 1,087 26,224
NEXTEL Communications Class A + 1,068 19,091 880 15,730 1,588 28,386
Northeast Utilities 1,340 30,653 1,070 24,476 1,916 43,829
Oklahoma Gas & Electric Co 429 15,176 340 12,028 612 21,650
Pinnacle West Capital Corp 941 23,407 750 18,656 1,334 33,183
Portland General Corp 540 12,960 430 10,320 775 18,600
Potomac Electric Power Co 1,282 27,403 1,010 21,589 1,806 38,603
Public Service Company of Colorado 661 21,400 530 17,159 949 30,724
Puget Sound Power & Light Co 683 14,770 540 11,678 971 20,998
SCANA Corp 1,026 23,855 820 19,065 1,446 33,620
Seagull Energy Corp + 391 7,869 310 6,239 548 11,029
Southern New England Telecom Corp 687 23,100 550 18,494 975 32,784
Southwestern Public Service Co 433 12,990 350 10,500 617 18,510
TECO Energy Inc 1,265 27,356 990 21,409 1,789 38,687
Telephone & Data Systems Inc 566 23,206 450 18,450 827 33,907
Utilicorp United Inc 491 13,318 380 10,308 675 18,309
Vanguard Cellular Systems Class A + 411 11,148 330 8,951 595 16,139
WPL Holdings Inc 341 9,719 260 7,410 473 13,481
Washington Gas Light Co 464 8,874 360 6,885 624 11,934
Wisconsin Energy Corp 1,148 30,853 920 24,725 1,645 44,209
WorldCom Inc + 1,308 44,063 1,030 34,698 1,858 62,591
MEDIUM CAP UTILITY STOCKS - VALUE $ 796,721 $ 646,839 $ 1,138,271
- COST $ 739,484 $ 601,524 $ 1,037,134
SMALL CAP GROWTH STOCKS
PERCENT OF NET ASSETS 0.1% 0.1% 0.3%
Bancorp Hawaii Inc 474 $ 15,879 260 $ 8,710 757 $ 25,360
Breed Technologies Inc -- -- -- -- -- --
Collins & Aikman Corp + -- -- -- -- -- --
Ennis Business Forms Inc -- -- -- -- 247 3,211
Flowers Industries Inc 404 8,333 320 6,600 586 12,086
Geon Co -- -- -- -- -- --
Goulds Pumps Inc -- -- -- -- 315 6,773
Hartmarx Corp + 81 527 230 1,495 389 2,529
Home Shopping Network Inc + 1,025 10,763 810 8,505 1,444 15,162
International Dairy Queen Class A + -- -- -- -- 369 7,795
Jacobs Engineering Group + -- $ -- -- $ -- 373 $ 9,465
Kaydon Corp -- -- -- -- 250 7,625
Lance Inc -- -- -- -- 478 8,604
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Montana Power Co 584 12,848 540 11,880
NIPSCO Industries Inc 740 24,235 675 22,106
National Fuel Gas Co 412 11,588 385 10,828
Nevada Power Co 472 9,617 450 9,169
New England Electric System 718 25,130 690 24,150
New York State Electric & Gas 787 18,986 740 17,853
NEXTEL Communications Class A + 1,101 19,680 1,025 18,322
Northeast Utilities 1,386 31,705 1,290 29,509
Oklahoma Gas & Electric Co 442 15,636 415 14,681
Pinnacle West Capital Corp 974 24,228 905 22,512
Portland General Corp 560 13,440 520 12,480
Potomac Electric Power Co 1,316 28,130 1,230 26,291
Public Service Company of Colorado 684 22,145 635 20,558
Puget Sound Power & Light Co 706 15,267 655 14,164
SCANA Corp 1,036 24,087 980 22,785
Seagull Energy Corp + 403 8,110 375 7,547
Southern New England Telecom Corp 710 23,874 680 22,865
Southwestern Public Service Co 462 13,860 415 12,450
TECO Energy Inc 1,284 27,767 1,220 26,383
Telephone & Data Systems Inc 587 24,067 565 23,165
Utilicorp United Inc 494 13,400 472 12,803
Vanguard Cellular Systems Class A + 427 11,582 390 10,579
WPL Holdings Inc 343 9,776 325 9,263
Washington Gas Light Co 454 8,683 440 8,415
Wisconsin Energy Corp 1,175 31,578 1,105 29,697
WorldCom Inc + 1,343 45,242 1,260 42,446
MEDIUM CAP UTILITY STOCKS - VALUE $ 820,289 $ 762,513
- COST $ 751,367 $ 694,833
SMALL CAP GROWTH STOCKS
PERCENT OF NET ASSETS 0.2% 0.1%
Bancorp Hawaii Inc 477 $ 15,980 935 $ 31,323
Breed Technologies Inc -- -- 100 1,913
Collins & Aikman Corp + -- -- 400 3,450
Ennis Business Forms Inc -- -- -- --
Flowers Industries Inc 416 8,580 385 7,941
Geon Co -- -- 300 7,988
Goulds Pumps Inc -- -- -- --
Hartmarx Corp + 354 2,301 618 4,017
Home Shopping Network Inc + 1,049 11,015 680 7,140
International Dairy Queen Class A + -- -- -- --
Jacobs Engineering Group + -- $ -- -- $ --
Kaydon Corp -- -- -- --
Lance Inc -- -- -- --
</TABLE>
70 71
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Lands End Inc + -- -- -- -- 547 9,504
Lawson Products Inc -- -- -- -- 197 5,565
Lawter International Inc -- -- -- -- 677 7,955
Lee Enterprises Inc 249 9,867 -- -- 354 14,027
Lincoln Telecommunications -- -- -- -- 490 9,065
MagneTek Inc + -- -- -- -- 367 4,633
MAXXAM Inc + -- -- -- -- 128 7,520
Nabors Industries Inc + -- -- -- -- 1,285 11,886
National Education Corp + 52 397 118 900 270 2,059
Nellcor Inc + -- -- -- -- 250 13,000
OEA Inc + -- -- -- -- 308 9,240
Precision Castparts Corp -- -- -- -- 300 10,163
Sbarro Inc -- -- -- -- 319 7,297
Smith International Inc + 414 7,245 -- -- 597 10,448
Sotheby's Holdings Inc 611 8,478 -- -- 848 11,766
Stanhome Inc 220 6,820 170 5,270 299 9,269
Sterling Chemicals Inc + 612 6,350 -- -- 849 8,808
Structural Dynamics Research + 303 5,492 -- -- 434 7,866
Surgical Care Affiliates 415 9,078 -- -- 598 13,081
TCA Cable TV Inc 266 8,412 -- -- 371 11,733
Tiffany & Co 163 6,968 -- -- 240 10,260
Topps Co 512 3,072 -- -- 722 4,332
VeriFone Inc + 258 7,321 -- -- 363 10,300
Wausau Paper Mills Co 314 7,301 253 5,882 458 10,649
Williams-Sonoma Inc + -- -- -- -- -- --
SMALL CAP GROWTH STOCKS - VALUE $ 122,303 $ 37,362 $ 319,036
- COST $ 107,907 $ 35,008 $ 277,453
SMALL CAP VALUE STOCKS
PERCENT OF NET ASSETS 0.2% 0.1% 0.4%
AnnTaylor Stores Inc + 247 $ 4,786 195 $ 3,778 351 $ 6,801
Borders Group Inc + -- -- -- -- -- --
Conner Peripherals Inc + 545 7,289 430 5,751 780 10,433
Crown Vantage Inc + 22 529 49 1,186 105 2,539
Edison Brothers Stores Inc -- -- -- -- 347 1,128
Enterra Corp + -- -- -- -- 423 9,253
Exabyte Corp + -- -- -- -- 340 5,143
Family Dollar Stores Inc 620 11,315 480 8,760 857 15,640
Federal Mogul Corp 396 8,811 300 6,675 553 12,304
Federal Realty Investment Trust -- -- -- -- -- --
Fingerhut Co 505 $ 7,891 400 $ 6,250 714 $ 11,156
Fuller H B Co -- -- -- -- 225 7,706
Fund American Enterprises Inc + -- -- -- -- -- --
GenCorp Inc -- -- -- -- 485 5,759
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Lands End Inc + -- -- -- --
Lawson Products Inc -- -- -- --
Lawter International Inc -- -- -- --
Lee Enterprises Inc 255 10,104 -- --
Lincoln Telecommunications -- -- -- --
MagneTek Inc + -- -- -- --
MAXXAM Inc + -- -- -- --
Nabors Industries Inc + 29 268 -- --
National Education Corp + 212 1,617 -- --
Nellcor Inc + 175 9,100 -- --
OEA Inc + 223 6,690 -- --
Precision Castparts Corp 213 7,215 -- --
Sbarro Inc 219 5,010 -- --
Smith International Inc + 427 7,473 -- --
Sotheby's Holdings Inc 623 8,644 -- --
Stanhome Inc 214 6,634 210 6,510
Sterling Chemicals Inc + 624 6,474 -- --
Structural Dynamics Research + 319 5,782 -- --
Surgical Care Affiliates 428 9,363 -- --
TCA Cable TV Inc 276 8,729 -- --
Tiffany & Co 180 7,695 -- --
Topps Co 527 3,162 -- --
VeriFone Inc + 268 7,605 -- --
Wausau Paper Mills Co 326 7,580 297 6,905
Williams-Sonoma Inc + -- -- 200 3,900
SMALL CAP GROWTH STOCKS - VALUE $ 157,021 $ 81,087
- COST $ 133,822 $ 78,852
SMALL CAP VALUE STOCKS
PERCENT OF NET ASSETS 0.3% 0.1%
AnnTaylor Stores Inc + 253 $ 4,902 237 $ 4,592
Borders Group Inc + -- -- 400 8,100
Conner Peripherals Inc + 565 7,557 520 6,955
Crown Vantage Inc + 81 1,972 132 3,208
Edison Brothers Stores Inc -- -- -- --
Enterra Corp + -- -- -- --
Exabyte Corp + -- -- -- --
Family Dollar Stores Inc 627 11,443 495 9,034
Federal Mogul Corp 398 8,856 380 8,455
Federal Realty Investment Trust -- -- 400 8,750
Fingerhut Co 509 $ 7,953 180 $ 2,813
Fuller H B Co -- -- -- --
Fund American Enterprises Inc + -- -- 100 7,250
GenCorp Inc -- -- -- --
</TABLE>
72 73
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Gibson Greeting Inc -- -- -- -- 244 3,508
Granite Construction Inc -- -- -- -- 180 4,680
Hancock Fabrics -- -- -- -- 342 3,591
Hunt (JB) Transport Services -- -- -- -- 596 9,536
IES Industries Inc -- -- -- -- -- --
Indiana Energy Inc -- -- -- -- 352 7,304
Information Resources Inc + -- -- -- -- 403 5,189
Intelligent Electronics -- -- -- -- 540 4,995
International Multifoods Corp -- -- -- -- 274 6,165
John Alden Financial Corp -- -- -- -- -- --
Lukens Inc -- -- -- -- 230 6,900
MacFrugals Bargains Closeouts + -- -- -- -- 438 7,337
Measurex Corp -- -- -- -- 286 8,437
Meyer (Fred) Inc + -- -- -- -- -- --
Michael Foods Inc -- -- -- -- 229 2,977
Michaels Stores Inc + -- -- -- -- -- --
Miller (Herman) Inc 269 7,061 210 5,513 374 9,818
NCH Corp -- -- -- -- 124 7,099
National Presto Industries Inc -- -- -- -- 116 4,930
Novacare Corp + -- -- -- -- 975 8,044
Octel Communications + -- -- -- -- 365 12,456
Oregon Steel Mills Inc -- -- -- -- 299 5,008
Oshkosh B'Gosh Inc Class A 26 462 49 870 228 4,047
Overseas Shipholding Group 393 8,204 310 6,471 550 11,481
Parker & Parsley Petroleum 376 8,037 297 6,348 534 11,414
Parker Drilling Co + -- -- -- -- 844 4,748
Pentair Corp -- -- -- -- 288 13,104
Petrie Stores Corp -- -- -- -- -- --
Phillips Van Heusen Corp -- -- -- -- 410 6,048
Public Service Company of New Mexico + -- -- -- -- 650 9,913
Quaker State Corp -- -- -- -- 419 6,285
Rohr Industries Inc + -- -- -- -- 287 4,449
Rollins Environmental Services + 131 606 353 1,633 769 3,557
Ruddick Corp -- -- -- -- 357 9,550
SPX Corp 22 333 46 696 226 3,418
Savannah Foods & Industries -- -- -- -- 410 4,408
Sequent Computer Systems + 340 8,033 -- -- 471 11,127
Service Merchandise Co + 771 5,493 -- -- 1,516 10,802
Skyline Corp 20 353 44 776 222 3,913
Smucker (J M) Co Class A 305 6,405 -- -- 436 9,156
Southdown Inc + 175 $ 3,325 -- $ -- 253 $ 4,807
Standard Register Co 301 6,396 -- -- 432 9,180
Teleflex Inc 175 7,066 -- -- 254 10,255
Thiokol Inc 216 7,533 -- -- 295 10,288
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Gibson Greeting Inc -- -- -- --
Granite Construction Inc -- -- -- --
Hancock Fabrics -- -- -- --
Hunt (JB) Transport Services -- -- -- --
IES Industries Inc -- -- 300 7,575
Indiana Energy Inc -- -- -- --
Information Resources Inc + -- -- -- --
Intelligent Electronics -- -- -- --
International Multifoods Corp -- -- -- --
John Alden Financial Corp -- -- 300 6,300
Lukens Inc -- -- -- --
MacFrugals Bargains Closeouts + -- -- -- --
Measurex Corp -- -- -- --
Meyer (Fred) Inc + -- -- 200 4,800
Michael Foods Inc -- -- -- --
Michaels Stores Inc + -- -- 200 3,250
Miller (Herman) Inc 279 7,324 260 6,825
NCH Corp 89 5,095 -- --
National Presto Industries Inc 81 3,443 -- --
Novacare Corp + 710 5,858 -- --
Octel Communications + 270 9,214 -- --
Oregon Steel Mills Inc 199 3,333 -- --
Oshkosh B'Gosh Inc Class A 85 1,509 222 3,941
Overseas Shipholding Group 405 8,454 375 7,828
Parker & Parsley Petroleum 386 8,251 462 9,875
Parker Drilling Co + 619 3,482 -- --
Pentair Corp 203 9,237 -- --
Petrie Stores Corp -- -- 200 775
Phillips Van Heusen Corp 290 4,278 -- --
Public Service Company of New Mexico + 470 7,168 -- --
Quaker State Corp 299 4,485 -- --
Rohr Industries Inc + 207 3,209 -- --
Rollins Environmental Services + 623 2,881 822 3,802
Ruddick Corp 262 7,009 -- --
SPX Corp 83 1,255 248 3,751
Savannah Foods & Industries 290 3,118 -- --
Sequent Computer Systems + 341 8,056 -- --
Service Merchandise Co + 1,111 7,916 -- --
Skyline Corp 78 1,375 133 2,344
Smucker (J M) Co Class A 331 6,951 -- --
Southdown Inc + 178 $ 3,382 -- $ --
Standard Register Co 312 6,630 -- --
Teleflex Inc 194 7,833 -- --
Thiokol Inc 210 7,324 -- --
</TABLE>
74 75
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Varco International Inc + 292 3,212 -- -- 524 5,764
Waban Inc + 365 6,889 -- -- 497 9,381
Wallace Computer Services Inc 245 14,149 -- -- 350 20,213
Watts Industries Inc Class A + 308 7,623 -- -- 464 11,484
Western Publishing Group Inc + 234 2,574 -- -- 313 3,443
SMALL CAP VALUE STOCKS - VALUE $ 144,375 $ 54,707 $ 418,071
- COST $ 141,529 $ 57,923 $ 410,870
MICRO CAP STOCKS
PERCENT OF NET ASSETS 0.0% 0.0% 0.0%
Dave & Buster's Inc + -- $ -- -- $ -- 69 $ 1,186
Genzyme Corp - Tissue Repair + 35 503 -- -- 49 704
International Technology Corp + -- -- -- -- 551 1,791
Mid-American Waste Systems Inc + -- -- -- -- 372 2,000
NPC International Inc -- -- -- -- 374 2,384
Sequa Corp Class A + 110 2,929 -- -- 137 3,648
Sizzler International Inc 254 1,524 -- -- 434 2,604
Strattec Security Corp + 10 145 28 406 72 1,044
XOMA Corp + 188 658 -- -- 193 676
MICRO CAP STOCKS - VALUE $ 5,759 $ 406 $ 16,037
- COST $ 5,426 $ 344 $ 16,698
INTERNATIONAL STOCKS (EXCEPT JAPAN)
PERCENT OF NET ASSETS 3.4% 8.2% 10.9%
Alcatel Alsthom Compagnie Generale
d'Electricite ADR (France) 5,000 $ 100,000 10,900 $ 218,000 23,850 $ 477,000
Allied Irish Banks PLC ADR (Ireland) 600 17,025 1,300 36,888 2,850 80,869
BAT Industries PLC ADR (UK) 4,300 67,725 9,100 143,325 20,000 315,000
BET PLC ADR (UK) 2,900 23,925 6,300 51,975 13,750 113,438
Banco Bilbao Vizcaya ADR (Spain) 300 9,038 800 24,100 1,800 54,225
Banco Central Hispanoamericano SA ADR
(Spain) 400 4,100 900 9,225 2,250 23,063
Banco Santander SA ADR (Spain) 300 12,375 700 28,875 1,550 63,938
Barclays PLC ADR (UK) 1,200 53,550 2,700 120,488 5,850 261,056
Benetton Group SpA ADR (Italy) 2,300 49,738 5,000 108,125 11,000 237,875
British Airways PLC ADR (UK) 700 46,375 1,500 99,375 3,200 212,000
British Petroleum Co PLC ADR (UK) 500 45,063 1,100 99,138 2,450 220,806
British Gas PLC ADR (UK) 1,600 69,000 3,400 146,625 7,550 325,594
British Steel PLC ADR (UK) 300 8,400 800 22,400 1,750 49,000
British Telecommunications PLC ADR (UK) 1,600 $ 100,400 3,400 $ 213,350 7,550 $ 473,763
Broken Hill Proprietory Co Ltd ADR
(Australia) 990 57,544 2,130 123,806 4,370 254,006
Coles Myer Ltd ADR (Australia) 1,024 27,008 2,232 58,869 4,800 126,600
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Varco International Inc + 374 4,114 -- --
Waban Inc + 367 6,927 -- --
Wallace Computer Services Inc 255 14,726 -- --
Watts Industries Inc Class A + 334 8,267 -- --
Western Publishing Group Inc + 233 2,563 -- --
SMALL CAP VALUE STOCKS - VALUE $ 227,350 $ 120,223
- COST $ 219,655 $ 131,690
MICRO CAP STOCKS
PERCENT OF NET ASSETS 0.0% 0.0%
Dave & Buster's Inc + -- $ -- -- $ --
Genzyme Corp - Tissue Repair + 36 518 33 474
International Technology Corp + -- -- -- --
Mid-American Waste Systems Inc + -- -- -- --
NPC International Inc 284 1,811 -- --
Sequa Corp Class A + 102 2,716 -- --
Sizzler International Inc 319 1,914 -- --
Strattec Security Corp + 49 711 -- --
XOMA Corp + 193 676 -- --
MICRO CAP STOCKS - VALUE $ 8,346 $ 474
- COST $ 8,102 $ 152
INTERNATIONAL STOCKS (EXCEPT JAPAN)
PERCENT OF NET ASSETS 13.3% 14.5%
Alcatel Alsthom Compagnie Generale
d'Electricite ADR (France) 19,500 $ 390,000 31,500 $ 630,000
Allied Irish Banks PLC ADR (Ireland) 2,300 65,263 3,750 106,406
BAT Industries PLC ADR (UK) 16,350 257,513 26,400 415,800
BET PLC ADR (UK) 11,250 92,813 18,050 148,913
Banco Bilbao Vizcaya ADR (Spain) 1,500 45,188 2,400 72,300
Banco Central Hispanoamericano SA ADR
(Spain) 1,800 18,450 2,950 30,238
Banco Santander SA ADR (Spain) 1,250 51,563 2,050 84,563
Barclays PLC ADR (UK) 4,750 211,969 7,700 343,613
Benetton Group SpA ADR (Italy) 9,000 194,625 14,500 313,563
British Airways PLC ADR (UK) 2,600 172,250 4,200 278,250
British Petroleum Co PLC ADR (UK) 2,000 180,250 3,250 292,906
British Gas PLC ADR (UK) 6,150 265,219 9,950 429,094
British Steel PLC ADR (UK) 1,400 39,200 2,300 64,400
British Telecommunications PLC ADR (UK) 6,150 $ 385,913 9,950 $ 624,363
Broken Hill Proprietory Co Ltd ADR
(Australia) 3,760 218,550 6,090 353,981
Coles Myer Ltd ADR (Australia) 4,032 106,344 6,490 171,174
</TABLE>
76 77
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Courtaulds PLC ADR (UK) 8,600 65,575 18,600 141,825 40,850 311,481
Daimler Benz Aktiengesellschaft ADR
(Germany) 7,600 376,200 16,400 811,800 35,950 1,779,525
ELF Aquitaine ADR (France) 4,200 153,825 9,000 329,625 19,850 727,006
Fiat SpA ADR (Italy) + 3,400 62,900 7,300 135,050 16,050 296,925
Glaxo Holdings PLC ADR (UK) 3,200 76,000 7,000 166,250 15,300 363,375
Grand Metropolitan PLC ADR (UK) 3,300 84,563 7,200 184,500 15,700 402,313
Hafslund Nycomed Class B ADR (Norway) 1,100 26,400 2,500 60,000 5,000 120,000
Hanson PLC ADR (UK) 3,700 63,363 8,100 138,713 17,800 304,825
Hong Kong Telecommunications Ltd ADR (Hong
Kong) 9,400 168,025 20,400 364,650 44,750 799,906
Imperial Chemical Industries PLC ADR (UK) 900 42,863 2,000 95,250 4,150 197,644
KLM Royal Dutch Airlines ADR (Netherlands)
+ 300 9,938 600 19,875 1,300 43,063
Montedison SpA ADR (Italy) + 1,600 12,000 3,100 23,250 6,650 49,875
National Australia Bank Ltd ADS
(Australia) 900 38,813 1,900 81,938 4,100 176,813
News Corporation Ltd ADR (Australia) 600 13,650 1,300 29,575 3,000 68,250
Novo-Nordisk A/S ADR (Denmark) 1,800 51,300 3,900 111,150 8,050 229,425
Philips Electronics NV (Netherlands) 800 36,000 1,800 81,000 3,950 177,750
RTZ PLC ADR (UK) 1,200 66,300 2,600 143,650 5,700 314,925
Repsol SA ADR (Spain) 900 28,463 1,700 53,763 3,750 118,594
Rhone-Poulenc SA ADR (France) 1,900 39,425 4,200 87,150 9,100 188,825
Royal Dutch Petroleum Co ADR (Netherlands) 839 100,051 1,817 216,677 4,038 481,532
Smithkline Beecham PLC ADR (UK) 900 40,275 1,900 85,025 4,250 190,188
Telecommunications of New Zealand Corp ADR
(New Zealand) 400 25,550 800 51,100 1,850 118,169
Telefonica de Espana ADR (Spain) 1,000 40,625 2,300 93,438 4,800 195,000
Total Compagnie Francaise des Petroles SA
ADR (France) 1,700 50,575 3,700 110,075 8,200 243,950
Unilever NV (Netherlands) 2,505 309,681 5,283 653,111 11,521 1,424,284
U.S. Industries Inc + 195 3,047 305 4,766 450 7,031
Vodafone Group PLC ADR (UK) 900 37,688 1,800 75,375 3,900 163,313
Western Mining Holdings Corp Ltd ADR
(Australia) 800 21,500 1,600 43,000 3,400 91,375
Westpac Banking Corp ADR (Australia) 800 15,000 1,700 31,875 3,800 71,250
INTERNATIONAL STOCKS - VALUE $ 2,750,861 $ 5,928,020 $ 12,944,845
- COST $ 2,642,497 $ 5,746,716 $ 12,796,296
JAPANESE STOCKS
PERCENT OF NET ASSETS 1.7% 2.5% 3.8%
CSK Corp ADR 1,750 $ $46,813 2,150 $ $57,513 5,400 $ $144,450
Canon Inc ADR 500 45,063 650 58,581 1,700 153,213
Fuji Photo Film Co Ltd ADR 700 34,825 900 44,775 2,200 109,450
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Courtaulds PLC ADR (UK) 33,400 254,675 53,700 409,463
Daimler Benz Aktiengesellschaft ADR
(Germany) 29,400 1,455,300 47,450 2,348,775
ELF Aquitaine ADR (France) 16,200 593,325 26,200 959,575
Fiat SpA ADR (Italy) + 13,150 243,275 21,200 392,200
Glaxo Holdings PLC ADR (UK) 12,500 296,875 20,200 479,750
Grand Metropolitan PLC ADR (UK) 12,850 329,281 20,700 530,438
Hafslund Nycomed Class B ADR (Norway) 4,450 106,800 7,150 171,600
Hanson PLC ADR (UK) 14,550 249,169 23,500 402,438
Hong Kong Telecommunications Ltd ADR (Hong
Kong) 36,600 654,225 59,050 1,055,519
Imperial Chemical Industries PLC ADR (UK) 3,550 169,069 5,750 273,844
KLM Royal Dutch Airlines ADR (Netherlands)
+ 1,050 34,781 1,700 56,313
Montedison SpA ADR (Italy) + 5,850 43,875 9,400 70,500
National Australia Bank Ltd ADS
(Australia) 3,350 144,469 5,400 232,875
News Corporation Ltd ADR (Australia) 2,450 55,738 3,950 89,863
Novo-Nordisk A/S ADR (Denmark) 7,000 199,500 11,250 320,625
Philips Electronics NV (Netherlands) 3,250 146,250 5,250 236,250
RTZ PLC ADR (UK) 4,650 256,913 7,500 414,375
Repsol SA ADR (Spain) 3,150 99,619 5,050 159,706
Rhone-Poulenc SA ADR (France) 7,450 154,588 12,000 249,000
Royal Dutch Petroleum Co ADR (Netherlands) 3,300 393,525 5,303 632,383
Smithkline Beecham PLC ADR (UK) 3,500 156,625 5,650 252,838
Telecommunications of New Zealand Corp ADR
(New Zealand) 1,500 95,813 2,450 156,494
Telefonica de Espana ADR (Spain) 4,100 166,563 6,650 270,156
Total Compagnie Francaise des Petroles SA
ADR (France) 6,700 199,325 10,850 322,788
Unilever NV (Netherlands) 9,415 1,163,929 15,232 1,883,056
U.S. Industries Inc + 260 4,063 335 5,234
Vodafone Group PLC ADR (UK) 3,200 134,000 5,150 215,656
Western Mining Holdings Corp Ltd ADR
(Australia) 2,850 76,594 4,600 123,625
Westpac Banking Corp ADR (Australia) 3,100 58,125 5,000 93,750
INTERNATIONAL STOCKS - VALUE $ 10,631,399 $ 17,168,653
- COST $ 10,637,685 $ 17,274,456
JAPANESE STOCKS
PERCENT OF NET ASSETS 4.4% 5.2%
CSK Corp ADR 4,200 $ $112,350 7,400 $ $197,950
Canon Inc ADR 1,300 117,163 2,250 202,781
Fuji Photo Film Co Ltd ADR 1,700 84,575 3,050 151,738
</TABLE>
78 79
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
LIFEPATH 2000 LIFEPATH 2010 2020 2020
--------------------------- --------------------------- ------------ ------------
SECURITY NAME SHARES VALUE SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Hitachi Ltd ADR 400 43,500 550 59,813 1,400 152,250
Honda Motor Co Ltd ADR 1,000 34,875 1,400 48,825 3,450 120,319
Ito Yokado Co Ltd ADR 550 116,325 700 148,050 1,700 359,550
Japan Air Lines Co ADR 8,800 111,100 11,350 143,294 28,400 358,550
Kirin Brewery Co ADR 1,400 147,700 1,800 189,900 4,600 485,300
Kubota Corp ADR 100 13,000 100 13,000 100 13,000
Kyocera Corp ADR 250 44,563 300 53,475 750 133,688
Makita Corp ADR 2,150 33,863 2,850 44,888 7,100 111,825
Matsushita Electric Industrial Co Ltd ADR 250 39,125 250 39,125 650 101,725
Mitsui & Co Ltd ADR 850 134,300 1,150 181,700 2,950 466,100
NEC Corp ADR 950 61,631 1,250 81,094 3,050 197,869
Nippon Telephone & Telegraph ADR 1,800 81,900 2,350 106,925 5,900 268,450
Nissan Motor Co Ltd ADR 2,200 33,275 3,000 45,375 7,550 114,194
Pioneer Electronics Corp 1,750 35,000 2,350 47,000 5,900 118,000
SONY Corp ADR 600 33,075 800 44,100 2,000 110,250
Tokio Marine & Fire Insurance Co ADR 4,200 246,225 5,500 322,438 13,800 809,025
Toyota Motor Corp ADR 1,500 59,063 1,950 76,781 4,850 190,969
JAPANESE STOCKS - VALUE $ 1,395,221 $ 1,806,652 $ 4,518,177
- COST $ 1,405,819 $ 1,821,087 $ 4,574,324
TOTAL COMMON STOCKS - VALUE $ 18,392,654 $ 36,703,186 $ 81,404,848
- COST $ 16,232,071 $ 32,550,948 $ 72,073,092
<CAPTION>
LIFEPATH 2030 LIFEPATH 2040
--------------------------- ---------------------------
SECURITY NAME SHARES VALUE SHARES VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
Hitachi Ltd ADR 1,050 114,188 1,850 201,188
Honda Motor Co Ltd ADR 2,650 92,419 4,650 162,169
Ito Yokado Co Ltd ADR 1,350 285,525 2,350 497,025
Japan Air Lines Co ADR 22,000 277,750 38,500 486,063
Kirin Brewery Co ADR 3,550 374,525 6,200 654,100
Kubota Corp ADR 100 13,000 100 13,000
Kyocera Corp ADR 600 106,950 1,000 178,250
Makita Corp ADR 5,500 86,625 9,700 152,775
Matsushita Electric Industrial Co Ltd ADR 500 78,250 900 140,850
Mitsui & Co Ltd ADR 2,300 363,400 3,950 624,100
NEC Corp ADR 2,350 152,456 4,200 272,475
Nippon Telephone & Telegraph ADR 4,600 209,300 8,050 366,275
Nissan Motor Co Ltd ADR 5,850 88,481 10,300 155,788
Pioneer Electronics Corp 4,600 92,000 8,050 161,000
SONY Corp ADR 1,550 85,444 2,700 148,838
Tokio Marine & Fire Insurance Co ADR 10,700 627,288 18,800 1,102,150
Toyota Motor Corp ADR 3,800 149,625 6,650 261,844
JAPANESE STOCKS - VALUE $ 3,511,314 $ 6,130,359
- COST $ 3,554,040 $ 6,208,862
TOTAL COMMON STOCKS - VALUE $ 65,166,543 $113,346,544
- COST $ 58,171,665 $102,372,212
</TABLE>
80 81
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER SERIES
AUGUST 31, 1995
PORTFOLIOS OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LIFEPATH 2000 LIFEPATH 2010 LIFEPATH 2020
-------------------------- -------------------------- -------------
<S> <C> <C> <C> <C> <C>
SECURITY NAME PAR VALUE PAR VALUE PAR
LONG-TERM GOVERNMENT BONDS
PERCENT OF NET ASSETS 6.4% 5.5%
U.S. Treasury Bonds, 6.25% - 11.88%, 11/15/03 -
11/15/24 4,150,000 $ 5,143,654 3,150,000 $ 3,949,123 6,100,000
U.S. TREASURY BONDS - COST $ 5,065,337 $ 3,876,938
INTERMEDIATE-TERM GOVERNMENT NOTES
PERCENT OF NET ASSETS 52.0% 35.9%
U.S. Treasury Notes, 4.38% - 9.13%, 09/30/96 -
02/15/05 41,600,000 $ 41,969,099 25,250,000 $ 25,777,209 23,680,000
U.S. TREASURY NOTES - COST $ 41,285,135 $ 25,354,189
MONEY MARKETS
PERCENT OF NET ASSETS 18.4% 8.7%
U.S. Treasury Bills, 5.20% - 5.54%++, 09/07/95 -
11/24/95 14,998,000 $ 14,853,037 6,324,000 $ 6,267,044 7,143,000
U.S. TREASURY BILLS - COST $ 14,851,611 $ 6,266,466
TOTAL INVESTMENTS - VALUE $80,358,444 $72,696,562
(NOTES 1 AND 3) - COST** $77,434,154 $68,048,541
<CAPTION>
- --------------------------------------------------------------------------------------------------------- -------------
<S> <C> <C> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES 99.6% $ 80,358,444 101.3% $ 72,696,562 100.9%
Other Assets and Liabilities, Net 0.4% 293,587 (1.3 )% (940,446) (0.9 )%
----------- ------------ ----------- ------------ -------------
TOTAL NET ASSETS 100.0% $ 80,652,031 100.0% $ 71,756,116 100.0%
----------- ------------ ----------- ------------ -------------
----------- ------------ ----------- ------------ -------------
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LIFEPATH 2020 LIFEPATH 2030 LIFEPATH 2040
------------- -------------------------- --------------------------
<S> <C> <C> <C> <C> <C>
SECURITY NAME VALUE PAR VALUE PAR VALUE
LONG-TERM GOVERNMENT BONDS
PERCENT OF NET ASSETS 5.9% 11.6% 2.7%
U.S. Treasury Bonds, 6.25% - 11.88%, 11/15/03 -
11/15/24 $ 6,970,655 8,130,000 $ 9,311,472 2,750,000 $ 3,159,014
U.S. TREASURY BONDS - COST $ 6,400,271 $ 8,618,027 $ 2,990,987
INTERMEDIATE-TERM GOVERNMENT NOTES
PERCENT OF NET ASSETS 20.3% 3.4% 0.2%
U.S. Treasury Notes, 4.38% - 9.13%, 09/30/96 -
02/15/05 $ 24,129,255 2,800,000 $ 2,744,344 250,000 $ 272,188
U.S. TREASURY NOTES - COST $ 23,696,750 $ 2,727,389 $ 268,523
MONEY MARKETS
PERCENT OF NET ASSETS 6.0% 3.8% 2.7%
U.S. Treasury Bills, 5.20% - 5.54%++, 09/07/95 -
11/24/95 $ 7,078,722 3,057,000 $ 3,028,756 3,269,000 $ 3,233,487*
U.S. TREASURY BILLS - COST $ 7,078,396 $ 3,028,578 $ 3,233,206
TOTAL INVESTMENTS - VALUE $119,583,480 $80,251,115 $120,011,233
(NOTES 1 AND 3) - COST** $109,248,509 $72,545,659 $108,864,928
- ------------------------------------------------
<S> <C> <C> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES $ 119,583,480 100.3% $ 80,251,115 101.3% $120,011,233
Other Assets and Liabilities, Net (1,065,466) (0.3 )% (276,831) (1.3 )% (1,546,269)
------------- ----------- ------------ ----------- ------------
TOTAL NET ASSETS $ 118,518,014 100.0% $ 79,974,284 100.0% $118,464,964
------------- ----------- ------------ ----------- ------------
------------- ----------- ------------ ----------- ------------
- -------------------------------------------------------------------------------------------------------------------------
+ NON-INCOME EARNING SECURITIES.
++ YIELD TO MATURITY.
* CERTAIN U.S. TREASURY BILLS ARE PLEDGED AS COLLATERAL FOR SECURITY CONTRACTS. SEE NOTE 1.
** COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME FOR FINANCIAL STATEMENT PURPOSES AND NET
UNREALIZED APPRECIATION CONSISTS OF:
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation $3,239,625 $5,177,713 $11,522,372
Gross Unrealized Depreciation (315,335) (529,692) (1,187,401)
------------ ------------ ------------
NET UNREALIZED APPRECIATION $2,924,290 $4,648,021 $ 10,334,971
------------ ------------ ------------
------------ ------------ ------------
<CAPTION>
Gross Unrealized Appreciation $8,667,751 $12,841,849
Gross Unrealized Depreciation (962,295) (1,695,544)
------------ ------------
NET UNREALIZED APPRECIATION $7,705,456 $ 11,146,305
------------ ------------
------------ ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
82 83
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
AUGUST 31, 1995
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH
2000 2010 2020
MASTER SERIES MASTER SERIES MASTER SERIES
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
In securities, at market
value (see cost below)
(Note 1) $80,358,444 $72,696,562 $119,583,480
Cash 1,946 3,604 6,036
RECEIVABLES:
Dividends and interest 689,839 438,608 489,168
Beneficial interests sold 354,143 180,600 199,424
Variation margin on
futures contracts 0 0 0
TOTAL ASSETS 81,404,372 73,319,374 120,278,108
LIABILITIES
PAYABLES:
Investment securities
purchased 0 1,004,710 1,003,939
Allocation to beneficial
interest holders 663,136 495,080 650,791
Beneficial interests
redeemed 17,082 0 0
Due to adviser 72,123 63,468 105,364
TOTAL LIABILITIES 752,341 1,563,258 1,760,094
TOTAL NET ASSETS $80,652,031 $71,756,116 $118,518,014
INVESTMENTS AT COST $77,434,154 $68,048,541 $109,248,509
- ----------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
84
<PAGE>
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
2030 2040
MASTER SERIES MASTER SERIES
<S> <C> <C>
- ----------------------------------------------------------------
ASSETS
INVESTMENTS:
In securities, at market
value (see cost below)
(Note 1) $80,251,115 $120,011,233
Cash 2,065 4,335
RECEIVABLES:
Dividends and interest 306,496 329,400
Beneficial interests sold 329,803 309,715
Variation margin on
futures contracts 0 1,700
TOTAL ASSETS 80,889,479 120,656,383
LIABILITIES
PAYABLES:
Investment securities
purchased 500,747 1,694,933
Allocation to beneficial
interest holders 343,852 394,128
Beneficial interests
redeemed 0 0
Due to adviser 70,596 102,358
TOTAL LIABILITIES 915,195 2,191,419
TOTAL NET ASSETS $79,974,284 $118,464,964
INVESTMENTS AT COST $72,545,659 $108,864,928
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
85
<PAGE>
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED AUGUST 31, 1995
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH
2000 2010 2020
MASTER SERIES MASTER SERIES MASTER SERIES
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $ 231,215 $ 400,713 $ 885,614
Interest 1,776,738 1,063,437 1,174,378
TOTAL INVESTMENT INCOME 2,007,953 1,464,150 2,059,992
EXPENSES (NOTE 2)
Advisory fees 194,714 164,464 277,294
TOTAL EXPENSES 194,714 164,464 277,294
NET INVESTMENT INCOME 1,813,239 1,299,686 1,782,698
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on sale
of investments 819,544 794,570 1,765,492
Net realized gain on sale
of futures contracts 27,030 67,639 542,038
Net change in unrealized
appreciation of
investments 2,919,380 4,100,538 7,982,249
Net change in unrealized
appreciation
(depreciation) of
futures contracts (15,075) (10,050) 0
NET GAIN ON INVESTMENTS 3,750,879 4,952,697 10,289,779
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $5,564,118 $6,252,383 $12,072,477
- ----------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
86
<PAGE>
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH
2030 2040
MASTER SERIES MASTER SERIES
<S> <C> <C>
- ----------------------------------------------------------------
INVESTMENT INCOME
Dividends $ 672,254 $ 1,068,190
Interest 478,912 263,859
TOTAL INVESTMENT INCOME 1,151,166 1,332,049
EXPENSES (NOTE 2)
Advisory fees 180,334 254,006
TOTAL EXPENSES 180,334 254,006
NET INVESTMENT INCOME 970,832 1,078,043
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on sale
of investments 2,072,718 3,703,158
Net realized gain on sale
of futures contracts 47,954 94,934
Net change in unrealized
appreciation of
investments 5,647,335 7,972,248
Net change in unrealized
appreciation
(depreciation) of
futures contracts 0 50,750
NET GAIN ON INVESTMENTS 7,768,007 11,821,090
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $8,738,839 $12,899,133
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
87
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LIFEPATH 2000 MASTER SERIES
----------------------------------
(UNAUDITED) FOR THE
FOR THE YEAR ENDED
SIX MONTHS ENDED FEBRUARY 28,
AUGUST 31, 1995 1995
<S> <C> <C>
- ----------------------------------------------------------------
INCREASE IN NET ASSETS
Net investment income $ 1,813,239 $ 2,112,452
Net realized gain (loss)
on sale of investments 819,544 118,927
Net realized gain (loss)
on sale of futures
contracts 27,030 48,130
Net change in unrealized
appreciation of
investments 2,919,380 4,911
Net change in unrealized
appreciation
(depreciation) of
futures contracts (15,075) 15,075
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 5,564,118 2,299,495
NET INCREASE IN NET ASSETS
RESULTING FROM BENEFICIAL
INTERESTS TRANSACTIONS 13,453,692 59,314,726
INCREASE IN NET ASSETS 19,017,810 61,614,221
NET ASSETS:
Beginning net assets 61,634,221 20,000
ENDING NET ASSETS $80,652,031 $61,634,221
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
88
<PAGE>
<TABLE>
<CAPTION>
LIFEPATH 2010 MASTER SERIES LIFEPATH 2020 MASTER SERIES
---------------------------------- ----------------------------------
(UNAUDITED) FOR THE (UNAUDITED) FOR THE
FOR THE YEAR ENDED FOR THE YEAR ENDED
SIX MONTHS ENDED FEBRUARY 28, SIX MONTHS ENDED FEBRUARY 28,
AUGUST 31, 1995 1995 AUGUST 31, 1995 1995
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
Net investment income $ 1,299,686 $ 1,467,751 $ 1,782,698 $ 1,990,649
Net realized gain (loss)
on sale of investments 794,570 2,805 1,765,492 52,734
Net realized gain (loss)
on sale of futures
contracts 67,639 295,721 542,038 (21,107)
Net change in unrealized
appreciation of
investments 4,100,538 547,483 7,982,249 2,352,722
Net change in unrealized
appreciation
(depreciation) of
futures contracts (10,050) 10,050 0 0
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 6,252,383 2,323,810 12,072,477 4,374,998
NET INCREASE IN NET ASSETS
RESULTING FROM BENEFICIAL
INTERESTS TRANSACTIONS 16,019,399 47,140,524 24,202,761 77,847,778
INCREASE IN NET ASSETS 22,271,782 49,464,334 36,275,238 82,222,776
NET ASSETS:
Beginning net assets 49,484,334 20,000 82,242,776 20,000
ENDING NET ASSETS $71,756,116 $49,484,334 $118,518,014 $82,242,776
- ----------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
89
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LIFEPATH 2030 MASTER SERIES
----------------------------------
(UNAUDITED) FOR THE
FOR THE YEAR ENDED
SIX MONTHS ENDED FEBRUARY 28,
AUGUST 31, 1995 1995
<S> <C> <C>
- ----------------------------------------------------------------
INCREASE IN NET ASSETS
Net investment income $ 970,832 $ 1,148,788
Net realized gain (loss)
on sale of investments 2,072,718 (144,351)
Net realized gain (loss)
on sale of futures
contracts 47,954 (38,856)
Net change in unrealized
appreciation of
investments 5,647,335 2,058,121
Net change in unrealized
appreciation
(depreciation) of
futures contracts 0 0
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 8,738,839 3,023,702
NET INCREASE IN NET ASSETS
RESULTING FROM BENEFICIAL
INTERESTS TRANSACTIONS 20,600,972 47,590,771
INCREASE IN NET ASSETS 29,339,811 50,614,473
NET ASSETS:
Beginning net assets 50,634,473 20,000
ENDING NET ASSETS $79,974,284 $50,634,473
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
90
<PAGE>
<TABLE>
<CAPTION>
LIFEPATH 2040 MASTER SERIES
----------------------------------
(UNAUDITED) FOR THE
FOR THE YEAR ENDED
SIX MONTHS ENDED FEBRUARY 28,
AUGUST 31, 1995 1995
<S> <C> <C>
- ----------------------------------------------------------------
INCREASE IN NET ASSETS
Net investment income $ 1,078,043 $ 1,039,966
Net realized gain (loss)
on sale of investments 3,703,158 140,585
Net realized gain (loss)
on sale of futures
contracts 94,934 (102,175)
Net change in unrealized
appreciation of
investments 7,972,248 3,174,056
Net change in unrealized
appreciation
(depreciation) of
futures contracts 50,750 0
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 12,899,133 4,252,432
NET INCREASE IN NET ASSETS
RESULTING FROM BENEFICIAL
INTERESTS TRANSACTIONS 39,006,309 62,287,090
INCREASE IN NET ASSETS 51,905,442 66,539,522
NET ASSETS:
Beginning net assets 66,559,522 20,000
ENDING NET ASSETS $118,464,964 $66,559,522
- ----------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
91
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
92
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Master Investment Portfolio ("Master Portfolio") is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. Master Portfolio was organized as a Delaware business trust pursuant to
an Agreement and Declaration of Trust dated May 14, 1993 (the "Trust") and had
no operations prior to March 1, 1994. Master Portfolio is currently authorized
to issue fourteen separate diversified portfolios (the "Master Series"), of
which the following have commenced operations: LifePath 2000 Master Series,
LifePath 2010 Master Series, LifePath 2020 Master Series, LifePath 2030 Master
Series, LifePath 2040 Master Series, Asset Allocation Master Series, Bond Index
Master Series, S&P 500 Index Master Series and U.S. Treasury Allocation Master
Series. The following significant accounting policies are consistently followed
by Master Portfolio in the preparation of its financial statements, and such
policies are in conformity with generally accepted accounting principles for
investment companies. The financial statements for the Asset Allocation Master
Series, Bond Index Master Series, S&P 500 Index Master Series and U.S. Treasury
Allocation Master Series are presented separately.
INVESTMENT POLICY AND SECURITY VALUATION
Each Master Series covered by this report follows an asset allocation
strategy among three broad investment classes: equity and debt securities of
issuers located throughout the world and cash in the form of money market
instruments. The equity securities of the Master Series are valued at the last
sale price on the primary securities exchange or national securities market on
which such securities are traded. Securities not listed on an exchange or
national securities market, or securities in which there were no transactions,
are valued at the most recent bid prices. Debt securities maturing in 60 days or
less are valued at amortized cost, which approximates market value. Debt
securities, other than those maturing in 60 days or less, are valued at the
latest quoted bid price. Any securities, restricted securities or other assets
for which recent market quotations are not readily available, are valued at fair
value as determined in good faith in accordance with policies approved by Master
Portfolio's Board of Trustees.
93
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are accounted for on the date the securities are
purchased or sold (trade date). Dividend income is recognized on the ex-dividend
date, and interest income is recognized on a daily accrual basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Bond discounts and premiums are amortized as required by the Internal Revenue
Code of 1986 (the "Code").
FEDERAL INCOME TAXES
Each Master Series of the Trust intends to qualify as a partnership for
federal income tax purposes. Each Master Series therefore believes that it will
not be subject to any federal income tax on its income and net capital gains (if
any). However, each investor in a Master Series will be taxable on its allocable
share of the partnership's income and capital gains. The determination of such
share will be made in accordance with the applicable sections of the Code.
It is intended that each Master Series' assets, income and allocations will
be managed in such a way that a regulated investment company investing in a
Master Series will be able to satisfy the requirements of Subchapter M of the
Code, assuming that the investment company invested all of its assets in the
corresponding Master Series.
FUTURES CONTRACTS
The Master Series may purchase futures contracts to gain exposure to market
changes, as this may be more efficient or cost effective than actually buying
the securities. A futures contract is an agreement between two parties to buy
and sell a security at a set price on a future date and is exchange traded. Upon
entering into a futures contract, a Master Series is required to pledge to the
broker an amount of cash, U.S. Government securities or other high-quality debt
securities equal to the minimum "initial margin" requirements of the exchange.
Pursuant to the contract, the Master Series agrees to receive from or pay to the
broker an amount of cash equal to the daily fluctuation in the value of the
contract. Such receipts or payments are known as "variation margin" and are
recorded by the Master Series as unrealized gains or losses. When the contract
is closed, the Master Series records a realized gain or loss equal to the
difference between the
94
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
value of the contract at the time it was opened and the value at the time it was
closed. Pursuant to regulations and/or published positions of the Securities and
Exchange Commission, the Master Series are required to segregate cash, U.S.
Government obligations or high quality, liquid debt instruments in connection
with futures transactions in an amount generally equal to the entire contract
amount. Risks of entering into futures contracts include the possibility that
there may be an illiquid market and that a change in the value of the contracts
may not correlate with changes in the value of the underlying securities. As of
August 31, 1995, the following Master Series had futures contracts outstanding:
<TABLE>
<S> <C> <C> <C> <C> <C>
NOTIONAL NET
NUMBER OF CONTRACT UNREALIZED
MASTER SERIES CONTRACTS TYPE EXPIRATION DATE VALUE APPRECIATION
- ----------------------------------------------------------------------------------------
LifePath 2040 2 S&P 500 Index September 1995 $562,850 $50,750
</TABLE>
The LifePath 2040 Master Series has pledged to brokers U.S. Treasury bills
for initial margin requirements with a par value of $55,000.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Master Portfolio has entered into an investment advisory agreement on behalf
of the Master Series with Wells Fargo Bank, N.A. ("WFB"). Pursuant to the
agreement, WFB provides investment guidance and policy direction in connection
with the daily portfolio management of each Master Series, for which it is
entitled to be compensated by the Master Portfolio monthly at an annual rate of
0.55% of the average daily net assets of each Master Series. WFB has engaged
Wells Fargo Nikko Investment Advisors ("WFNIA") to provide sub-advisory services
to each Master Series. Pursuant to a Sub-Advisory Agreement, WFNIA, subject to
the supervision and approval of WFB, provides investment advisory assistance and
the day-to-day management of each Master Series' assets, subject to the overall
authority of Master Portfolio's Board of Trustees. For providing these services,
WFNIA is entitled to be compensated by WFB monthly at an annual rate of 0.40% of
the average daily net assets of the Master Series.
95
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
In addition, Wells Fargo Institutional Trust Company N.A. ("WFITC"), a
subsidiary of WFNIA, acts as custodian for the Master Series. Custody fees are
paid to WFITC from the sub-advisory fee paid to WFNIA.
On June 21, 1995, Wells Fargo & Co. and The Nikko Securities Co., Ltd.
signed a definitive agreement to sell their partnership interests in WFNIA to
Barclays Bank PLC ("Barclays") of the U.K.. The sale, which is subject to the
approval of appropriate regulatory authorities, is expected to close in the
fourth quarter of 1995.
Barclays is one of the oldest and largest financial institutions in the
world, with approximately $264 billion in total assets at June 30, 1995.
Barclays has indicated an intention to reorganize WFNIA into one of WFNIA's two
current partners, which would be renamed BZW Global Investors. Barclays and its
affiliates have considerable experience in managing fund assets and had
approximately $35 billion of quantitative fund assets under management, as of
June 30, 1995. The BZW Division of Barclays offers a full range of investment
banking, capital markets and asset management services.
Under the Investment Company Act of 1940, this proposed change in control of
WFNIA would result in an assignment and termination of the current Sub-
Investment Advisory Agreements among WFNIA, Wells Fargo Bank and the Master
Series. Subject to approval of the Company's Board of Directors, it is
contemplated that a special meeting of shareholders of the Master Series will be
convened to consider a new Advisory Agreement with WFNIA's successor as the
primary advisor to each Master Series, which will become effective only upon the
change in control of WFNIA. It is not anticipated that the proposed change in
control will change the investment objective or overall investment strategy of
the Master Series.
ORGANIZATION EXPENSES
Stephens Inc. ("Stephens"), the administrator, sponsor and distributor for
the Master Series, has paid all expenses in connection with the Master Series'
organization and initial registration.
96
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
Pursuant to the Administration Agreement, Stephens has agreed to assume all
operating expenses of each LifePath Master Series, except for advisory fees,
interest, brokerage fees and commissions, if any, costs of independent pricing
services, and any extraordinary expenses.
Certain officers and directors of Master Portfolio are also officers of
Stephens. As of August 31, 1995, these officers of Stephens collectively owned
less than 1% of the Master Series' outstanding shares of beneficial interest.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities, for
each Master Series for the six months ended August 31, 1995, are as follows:
<TABLE>
<S> <C> <C> <C> <C> <C>
LIFEPATH LIFEPATH LIFEPATH LIFEPATH LIFEPATH
2000 2010 2020 2030 2040
AGGREGATE PURCHASES MASTER MASTER MASTER MASTER MASTER
AND SALES OF: SERIES SERIES SERIES SERIES SERIES
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS:
Purchases at cost $39,180,313 $16,550,109 $32,074,177 $10,876,711 $ 2,953,078
Sales proceeds 33,980,141 13,528,967 32,039,129 11,721,704 7,732,943
OTHER SECURITIES:
Purchases at cost 6,600,210 12,440,408 31,649,317 31,207,600 62,344,165
Sales proceeds 2,999,486 2,642,297 9,817,851 10,192,691 18,702,479
</TABLE>
4. FINANCIAL HIGHLIGHTS
The portfolio turnover rate, excluding short-term securities, for the Master
Series for each of the following periods are as follows:
<TABLE>
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH LIFEPATH LIFEPATH
2000 2010 2020 2030 2040
MASTER MASTER MASTER MASTER MASTER
PORTFOLIO TURNOVER SERIES SERIES SERIES SERIES SERIES
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
For the Six Months Ended August 31, 1995 (Unaudited) 65% 29% 44% 35% 29%
For the Year Ended February 28, 1995 17% 24% 28% 40% 5%
</TABLE>
97
<PAGE>
Wells Fargo provides investment advisory services, shareholder services, and
certain other services for the Stagecoach Funds. The Funds are sponsored and
distributed by STEPHENS INC., Member NYSE/SIPC. Wells Fargo is not affiliated
with Stephens Inc.
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Stagecoach Funds. If this report
is used for promotional purposes, distribution of the report must be accompanied
or preceded by a current prospectus. For a prospectus containing more complete
information, including charges and expenses, call 1-800-222-8222. Read the
prospectus carefully before you invest or send money.
LP 3016 (10/ 95)
<TABLE>
<S> <C>
STAGECOACH
FUNDS-REGISTERED TRADEMARK-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
</TABLE>
-C- 1995 Stagecoach Funds
<PAGE>
L I F E P A T H F U N D S 1 9 9 5 S E M I - A N N U A L R E P O R T
|
|