<PAGE>
STAGECOACH
Funds
- ------------------
LIFEPATH(TM)
- ------------------
FUNDS
- ------------------
SEMI-ANNUAL
- ------------------ [ARTWORK APPEARS HERE]
REPORT
- ------------------
LifePath 2000 Fund(TM)
LifePath 2010 Fund(TM)
LifePath 2020 Fund(TM)
LifePath 2030 Fund(TM)
LifePath 2040 Fund(TM)
Class A and B NOT FDIC INSURED
August 31, 1997
<PAGE>
- --------------------
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders...................................................... 1
Investment Advisor Discussion............................................... 3
STAGECOACH TRUST
Statement of Assets and Liabilities........................................ 8
Statement of Operations.................................................... 10
Statements of Changes in Net Assets........................................ 12
Financial Highlights....................................................... 16
Notes to the Financial Statements.......................................... 21
MASTER INVESTMENT PORTFOLIO
PORTFOLIOS OF INVESTMENTS
LifePath Master Portfolios................................................. 28
MASTER INVESTMENT PORTFOLIO
Statement of Assets and Liabilities........................................ 94
Statement of Operations.................................................... 96
Statements of Changes in Net Assets........................................ 98
Notes to the Financial Statements.......................................... 102
</TABLE>
STAGECOACH FUNDS:
---------------------------------------------------
. are NOT FDIC insured
. are NOT obligations of Wells
Fargo Bank or Barclays Global
Investors, N.A. ("BGI")
. are NOT guaranteed by the Bank
or BGI
. involve investment risk,
including possible loss of
principal
i
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE>
LETTER TO SHAREHOLDERS
TO OUR SHAREHOLDERS:
- --------------------
We are pleased to present you with the 1997 LifePath Funds Semi-Annual Report
for the six-month period ended August 31, 1997.
The recently completed reporting period saw market volatility and the long-
expected increase in the federal funds target rate. After months of debate on
the rate of economic growth and the potential for increased rates of inflation,
the Federal Reserve acted in March to raise rates by 0.25%. The bond market
rallied after absorbing the news and after investors felt that further Federal
Reserve Action was unlikely in the immediately following months.
The equity markets once again showed strength, but also volatility. For exam-
ple, the equity market, as measured by the Standard & Poor's 500 Index, fell
7.20% in March from its February high, yet the Index still enjoyed a total re-
turn of 13.74% for the period covered by this report. (For returns on the indi-
vidual Funds, please see the performance at a glance chart)
Market volatility underscores the need for a disciplined, value-oriented,
strategy to achieve long-range goals. The LifePath Funds are built on such a
strategy.
Each Fund is designed with a long-term, "strategic" asset allocation. For exam-
ple, shareholders in the LifePath 2000 Fund are assumed to require greater
price stability than those in the later dated Funds. Therefore, the strategic
asset allocation for the Fund is tipped towards less volatile investments. As a
Fund's time-horizon approaches, the strategic asset allocation is adjusted ac-
cordingly by gradually shifting towards a more stable, lower-risk profile.
But the economy does not offer a stagnant set of risk and reward relationships.
As this year has shown, risk and reward ratios can change frequently. That is
where each Fund's "tactical" asset allocation plays an important role. Tactical
asset allocation attempts to recognize short-term values in the markets and
react accordingly. Tactical asset allocation can only succeed with reliable
information. The Funds' investment advisors examine a wide-range of
quantitative and consensus-based information to determine which asset classes
are under or over-valued, which are offering greater-than-usual potential
rewards or greater-than-average risks.
The management discussion and performance figures which follow highlight the
Funds' efforts to capture value for our investors during
1
<PAGE>
LETTER TO SHAREHOLDERS
- --------------------
the last six months. We hope you find it enlightening and we thank you for your
continued investment.
- --Stagecoach Funds August 31, 1997
Each LifePath Fund invests in a corresponding LifePath Master Portfolio, which
in turn invests directly in individual securities. References to the Fund are
to the Fund or Master Portfolio, as context requires. The S&P 500 Index is an
unmanaged index of 500 widely held common stocks representing, among others,
industrial, financial, utility and transportation companies listed or traded on
national exchanges or over-the-counter markets. The Lehman Brothers Long-Term
US Treasury Bond Index is an unmanaged index composed of US Treasury bonds with
10-year or longer maturities.
2
<PAGE>
INVESTMENT ADVISOR DISCUSSION
- --------------------
- ---------------------
Investment Advisor Discussion
HOW HAVE THE FUNDS PERFORMED OVER THE PREVIOUS SIX-MONTHS?
The returns for the reporting period (March 1, 1997 through August 31, 1997)
and for the previous twelve months (from September 1, 1996 through August 31,
1997) were as follows:
<TABLE>
<CAPTION>
SIX
MONTHS 1 YEAR
------ ------
<S> <C> <C>
LifePath 2000..................................................... 5.51% 12.24%
LifePath 2010..................................................... 8.34% 19.85%
LifePath 2020..................................................... 10.52% 25.50%
LifePath 2030..................................................... 11.92% 29.52%
LifePath 2040..................................................... 13.22% 33.38%
</TABLE>
These returns are for Class A shares only and are exclusive of sales charges.
Please see the "Performance at a Glance" table for more complete performance
information.
HOW DO THESE PERFORMANCE FIGURES COMPARE TO RECENT EXPERIENCE?
If we compare the six month and twelve month returns given above to the twelve
month returns covering the period from March 1, 1996 through February 28, 1997,
we can see that the trend is generally positive. The returns for the year ended
February 28, 1997 were as follows:
<TABLE>
<S> <C>
LifePath 2000............................................................ 6.74%
LifePath 2010............................................................ 11.60%
LifePath 2020............................................................ 14.65%
LifePath 2030............................................................ 17.01%
LifePath 2040............................................................ 20.17%
</TABLE>
For example, the six month total return for the LifePath 2000 Fund through Au-
gust 31, 1997 was 5.51% as compared to 6.74% for the twelve month period ended
February 28, 1997.
The LifePath Funds' asset allocation model tries to capture and take advantage
of broad economic and market trends, within the risk tolerance for the particu-
lar Fund. During the six-month period covered by this report, the S&P 500 In-
dex, one of the most commonly used equity market indexes, had a total return of
13.74%. For the year ended August 31, 1997, the return was 37.38%. These are
very strong gains that reflect the continuing strong equity market enjoyed in
recent years. The bond market, as measured by the Lehman Brothers Long Govern-
ment Bond Index, had returns of 5.89% and 12.52% for the six month and one year
periods ended August 31, 1997, respectively. These returns showed an improve-
ment that particularly benefited the shorter-dated Funds, which typically have
a greater bond and fixed income exposure than the longer-dated Funds.
3
<PAGE>
INVESTMENT ADVISOR DISCUSSION
- --------------------
CAN YOU BRIEFLY STATE THE PRIMARY FACTORS DRIVING RETURNS IN THE FOLLOWING
ASSET CLASSES?
LARGE CAP VALUE--Increasing corporate earnings and a strong economy increased
total returns for large company stocks. The increased corporate earnings in
particular justify and support higher stock prices in many investors' minds.
MEDIUM CAP GROWTH--Similar to large cap value stocks, increased earnings, a
strong economy low inflation and lessened interest rate-hike fears helped to
propel this asset class.
INTERMEDIATE GOVERNMENT--Intermediate government bonds are generally less in-
terest rate sensitive than long government bonds. As a result, they did not
fall as much as the long bonds in March when the Federal Reserve increased the
federal funds target rate. On the other hand, intermediate bonds did not enjoy
as strong a rally as long bonds in July when the Fed eased fears by not raising
rates.
INTERNATIONAL (EXCEPT JAPAN)--The international equity market has shown a high
correlation to the U.S. equity market over the last year or two while also ex-
periencing strong corporate earnings and growing economies. This was generally
true in the six month period as well.
THE TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED AUGUST 31, 1997 PROVIDED ABOVE
SHOW A SPREAD FROM 5.51% TO 13.22%. THIS IS RELATIVELY SMALLER THAN IN THE
PAST. WHY?
The LifePath 2040 Fund, the most aggressive of the Funds, is generally the most
heavily invested in equities. The LifePath 2000 Fund has a greater investment
in shorter-term, and generally more stable, fixed-income investments. The dif-
ference in the returns for these two Funds is therefore highly dependent on the
divergent returns of stocks and bonds. Over the last year, equities have
outperformed bonds by a large measure, particularly after impressive gains in
June and July. In August, however, the stock market, as represented by the S&P
500, dropped 5.3% while bonds, as measured by the Lehman Brothers Long Govern-
ment Bond Index, fell by only 0.4%. As a result, the spread of returns for the
Funds converged somewhat.
WHAT FACTORS COME INTO PLAY WHEN SHIFTING ASSETS BETWEEN THE FUNDS' INVESTMENT
OPTIONS? DO YOU SHIFT INTO UNDERVALUED CLASSES (A MORE AGGRESSIVE APPROACH) OR
AWAY FROM OVERVALUED CLASSES (A MORE DEFENSIVE OR CONSERVATIVE APPROACH)?
The majority of each Fund's allocation is determined by a long-term strategic
view. This long-term view is generally not greatly affected by short-term mar-
ket swings. The Funds, however, do make tactical allocations to take advantage
of shorter-term market conditions. Such tactical allocations are important, but
they play a smaller role than the long-term view.
Each Fund's strategic allocations are primarily influenced by the level of risk
tolerance for each Fund. As such, the LifePath 2000 Fund has a much more con-
servative allocation than the LifePath
4
<PAGE>
INVESTMENT ADVISOR DISCUSSION
- --------------------
2040 Fund. Within each Fund's strategic allocation, tactical allocations at-
tempt to take advantage of short-term market conditions if those conditions
make one asset class more attractive on a risk and return basis than another.
In other words, whether an asset is overvalued or undervalued is not as impor-
tant as its relative valuation versus alternative permissible investments.
In the beginning of the period, the Funds made small shifts into bonds as the
stock market rose. This is not to say that the equity market was "overvalued",
but the higher value of stocks did make bonds more attractive in relation to
the risks stocks entail as opposed to bonds. After the bond market rallied, the
equation shifted again, with stocks again becoming more attractive and the al-
locations gradually shifting closer to what they were at the beginning of the
period. The overall strategic targets remain very steady.
THROUGHOUT THE LIFE OF A FUND, ARE ALLOCATION SHIFTS MORE STRATEGIC OR TACTICAL
IN NATURE?
The majority of allocation shifts are strategic in nature, in other words, they
are made with a long-term perspective. As a Fund ages, the allocation of its
assets becomes more conservative. Forty years from now, the strategic alloca-
tion of LifePath 2040 will look very similar to the strategic allocation of
today's LifePath 2000. Tactical allocations are responsible for a much smaller
portion of the allocation shifts. The weight given to these tactical moves is
the same for each of the five Funds. Tactical shifts for the more aggressive,
longer-dated Funds tend to be between stocks, bonds and cash. For the shorter-
duration Funds, tactical allocations tend to be shifts between longer-duration
bonds, shorter duration bonds and cash.
GENERALLY SPEAKING, HOW DID THE TACTICAL ALLOCATIONS SHIFT DURING THE REPORTING
PERIOD?
In broad terms, we can look at the Fixed-Income and Equity Models. These are
asset allocation models without the more narrowly focused asset classes the
LifePath Funds may use. By looking at broad categories, we can see that the
Fixed-Income Model became more conservative and the Equity Model less conserva-
tive. The LifePath 2000, the Fund most heavily invested in fixed income securi-
ties, began the six-month period with 100% investment in notes. By August 31,
the allocation shifted to 60% notes and 40% cash. This reflected our belief
that cash became relatively more attractive than bonds, particularly after the
bond market's mild rally had run its course. The LifePath 2040 Fund, the Fund
most heavily invested in US Equities, had 60% of its allocation in stocks and
40% in bonds in March. The period closed with 85% allocated to stocks and only
15% in bonds. This reflected the equity market's strong returns and attractive-
ness relative to bonds.
5
<PAGE>
INVESTMENT ADVISOR DISCUSSION
- --------------------
PERFORMANCE AT A GLANCE
PERFORMANCE AS OF 8/31/97___________________________AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
- ------------------------------------------------------------------
<CAPTION>
Since
03/01/94
Class A Shares 1 Year 3 Year Inception
- ------------------------------------------------------------------
<S> <C> <C> <C>
With Maximum 4.5% Sales Charge
LifePath 2000 n/a n/a n/a
- ------------------------------------------------------------------
LifePath 2010 14.50% 12.35% 10.64%
- ------------------------------------------------------------------
LifePath 2020 19.87% 15.34% 13.32%
- ------------------------------------------------------------------
LifePath 2030 23.70% 17.77% 15.31%
- ------------------------------------------------------------------
LifePath 2040 27.38% 20.00% 17.59%
- ------------------------------------------------------------------
Without Sales Charge
LifePath 2000 12.24% 9.13% 7.76%
- ------------------------------------------------------------------
LifePath 2010 19.85% 14.09% 12.10%
- ------------------------------------------------------------------
LifePath 2020 25.50% 17.12% 14.82%
- ------------------------------------------------------------------
LifePath 2030 29.52% 19.59% 16.83%
- ------------------------------------------------------------------
LifePath 2040 33.38% 21.86% 19.14%
- ------------------------------------------------------------------
<CAPTION>
Since
03/01/94
Class B Shares 1 Year 3 Year Inception
- ------------------------------------------------------------------
<S> <C> <C> <C>
With Maximum Contingent Deferred Sales
Charge(/1/)
LifePath 2010 13.98% 12.69% 10.82%
- ------------------------------------------------------------------
LifePath 2020 19.63% 15.74% 13.57%
- ------------------------------------------------------------------
LifePath 2030 23.52% 18.21% 15.58%
- ------------------------------------------------------------------
LifePath 2040 27.15% 20.42% 17.85%
- ------------------------------------------------------------------
Without Contingent Deferred Sales Charge
LifePath 2010 18.98% 13.48% 11.48%
- ------------------------------------------------------------------
LifePath 2020 24.63% 16.48% 14.19%
- ------------------------------------------------------------------
LifePath 2030 28.52% 18.92% 16.18%
- ------------------------------------------------------------------
LifePath 2040 32.15% 21.11% 18.41%
- ------------------------------------------------------------------
</TABLE>
(1) Assumes redemption on 8/31/97.
Past performance is not predictive of future results. The investment return and
net asset value of shares of each Fund will fluctuate with market conditions so
that shares of the Fund, when redeemed, may have a greater or lesser net asset
value than when originally purchased.
Average annual total returns for the indicated periods represent the average
annual increase in the value of an investment over the periods assuming rein-
vestment of dividends and capital gains distributions at net asset value. The
Class B shares commenced operations on March 1, 1997. Historical performance
for the Class B shares prior to March 1, 1997, reflects the performance of the
Class A shares adjusted to reflect Class B expense levels in effect on this
date.
Each Fund is a feeder fund of a corresponding LifePath Master Portfolio of Mas-
ter Investment Portfolio which in turn buys the individual securities. Refer-
ences to the Fund are understood to be references to the Fund or Master Portfo-
lio as appropriate.
6
<PAGE>
INVESTMENT ADVISOR DISCUSSION
- --------------------
ASSET CLASS MIX AS OF 8/31/97
<TABLE>
- --------------------------------------------------------------------------
<CAPTION>
LifePath LifePath LifePath LifePath LifePath
STOCKS 2000 2010 2020 2030 2040
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Large Capitalization--
Value 2.04% 12.35% 19.69% 24.11% 28.01%
- --------------------------------------------------------------------------
Large Capitalization--
Growth 3.76 13.75 19.68 24.39 30.90
- --------------------------------------------------------------------------
Medium Capitalization--
Value 2.95 2.86 3.22 3.73 3.76
- --------------------------------------------------------------------------
Medium Capitalization--
Growth 2.56 2.71 2.93 3.53 3.52
- --------------------------------------------------------------------------
Small Capitalization--
Value 0.49 0.31 0.46 0.49 0.43
- --------------------------------------------------------------------------
Small Capitalization--
Growth 0.16 0.12 0.19 0.18 0.20
- --------------------------------------------------------------------------
Micro Capitalization 0.03 0.02 0.03 0.03 0.03
- --------------------------------------------------------------------------
Utilities 0.62 0.34 0.40 0.44 0.27
- --------------------------------------------------------------------------
Japan 1.06 2.58 3.29 3.91 4.68
- --------------------------------------------------------------------------
International (except
Japan) 5.43 7.70 9.80 12.70 12.86
- --------------------------------------------------------------------------
BONDS
- --------------------------------------------------------------------------
Long-Term Government 1.01 2.54 7.96 14.63 5.19
- --------------------------------------------------------------------------
Long-Term Corporate 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------
Intermediate-Term
Government 61.08 41.79 20.76 2.68 0.00
- --------------------------------------------------------------------------
Intermediate-Term
Corporate 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------
Mortgage-Backed 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------
Foreign 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------
MONEY MARKET
- --------------------------------------------------------------------------
U.S. Treasury Bills 6.65 4.97 3.04 2.14 0.47
- --------------------------------------------------------------------------
Cash Equivalents 8.44 3.47 4.09 2.61 5.46
- --------------------------------------------------------------------------
Repurchase Agreements 3.72 4.49 4.46 4.43 4.22
- --------------------------------------------------------------------------
TOTAL 100.00 100.00 100.00 100.00 100.00
- --------------------------------------------------------------------------
</TABLE>
Any differences between the percentages above and the percentages in the Port-
folios of Investments are due to unsettled trades and allocations to large cap
stocks through S&P 500 futures contracts.
7
<PAGE>
STATEMENT OF ASSETS & LIABILITIES AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
- --------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In corresponding Master Portfolio, at market value
(Note 1) $ 73,299,742 $ 87,334,697
RECEIVABLES:
Receivable from WFB (Note 2) 868 15,810
Fund shares sold 0 195,281
TOTAL ASSETS 73,300,610 87,545,788
LIABILITIES
PAYABLES:
Due to sponsor and distributor 25,950 29,161
Due to WFB (Note 2) 0 0
Capital shares redeemed 241,330 16,000
TOTAL LIABILITIES 267,280 45,161
TOTAL NET ASSETS $ 73,033,330 $ 87,500,627
NET ASSETS CONSIST OF:
Paid-in capital $ 64,941,689 $ 69,800,146
Undistributed net investment income 494,090 425,586
Undistributed net realized gain on investment 2,850,590 3,847,367
Net unrealized appreciation of investments 4,746,961 13,427,528
TOTAL NET ASSETS $ 73,033,330 $ 87,500,627
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER
SHARE
Net Assets - Class A $ 73,020,210 $ 85,323,652
Shares outstanding - Class A 6,598,903 6,564,393
Net asset value and offering price per share - Class
A $ 11.07 $ 13.00
Net Assets - Class B $ 0 $ 2,150,029
Shares outstanding - Class B 0 166,615
Net asset value and offering price per share - Class
B $ 0 $ 12.90
Net Assets - Institutional class $ 13,120 $ 26,946
Shares outstanding - Institutional class 1,269 2,317
Net asset value and offering price per share -
Institutional class $ 10.34 $ 11.63
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- ---------------------------------------------------------
<S> <C> <C>
$ 161,964,621 $ 116,999,983 $ 227,245,248
5,031 0 0
63,620 93,241 459,340
162,033,272 117,093,224 227,704,588
42,662 31,973 51,307
0 460 37,564
9,322 11,300 13,290
51,984 43,733 102,161
$ 161,981,288 $ 117,049,491 $ 227,602,427
$ 119,874,058 $ 82,560,364 $ 159,863,477
572,596 313,265 335,598
7,087,529 3,900,394 16,793,042
34,447,105 30,275,468 50,610,310
$ 161,981,288 $ 117,049,491 $ 227,602,427
$ 156,819,332 $ 112,370,680 $ 216,662,108
11,061,708 7,323,441 13,276,707
$ 14.18 $ 15.34 $ 16.32
$ 5,085,729 $ 4,634,089 $ 10,917,190
362,842 306,307 680,430
$ 14.02 $ 15.13 $ 16.04
$ 76,227 $ 44,722 $ 23,129
5,685 2,985 1,474
$ 13.41 $ 14.98 $ 15.69
- ------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED AUGUST 31, 1997
(UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
- ----------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME ALLOCATED FROM MASTER
PORTFOLIO
Dividends $ 178,747 $ 406,770
Interest 1,844,799 1,407,612
Expenses (214,541) (234,290)
NET INVESTMENT INCOME ALLOCATED FROM MASTER
PORTFOLIO 1,809,005 1,580,092
EXPENSES (NOTE 2)
Administration fee 38,977 42,594
Shareholder servicing fees 77,955 85,188
Transfer agency fees 38,977 42,594
Distribution costs - Class A 97,428 105,634
Distribution costs - Class B 0 2,405
TOTAL EXPENSES 253,337 278,415
NET INVESTMENT INCOME 1,555,668 1,301,677
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ALLOCATED FROM MASTER PORTFOLIO
Net realized gain (loss) on sale of investments 1,554,934 2,095,596
Net realized gain (loss) on sale of futures
contracts 0 0
NET REALIZED GAIN (LOSS) ON INVESTMENTS 1,554,934 2,095,596
CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIO
Net change in unrealized appreciation
(depreciation) of investments 985,758 3,388,506
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS 985,758 3,388,506
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 4,096,360 $ 6,785,779
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- ---------------------------------------------------------
<S> <C> <C>
$ 1,010,299 $ 870,801 $ 1,866,421
1,700,876 801,605 636,115
(420,039) (298,838) (574,587)
2,291,136 1,373,568 1,927,949
76,404 54,356 104,526
152,808 108,711 209,051
76,404 54,356 104,526
188,494 133,577 256,525
7,271 6,773 14,283
501,381 357,773 688,911
1,789,755 1,015,795 1,239,038
2,971,418 1,471,096 10,509,033
0 0 10,453
2,971,418 1,471,096 10,519,486
10,211,562 9,586,351 13,657,251
0 0 (7,881)
10,211,562 9,586,351 13,649,370
$ 14,972,735 $ 12,073,242 $ 25,407,894
- -----------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 Fund
-----------------------------------
For the
Six Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- -----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 1,555,668 $ 3,636,851
Net realized gain (loss) on sale of
investments 1,554,934 2,732,074
Net change in unrealized appreciation
(depreciation) of investments 985,758 (959,715)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,096,360 5,409,210
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (1,620,152) (3,756,712)
Class B 0 0
Institutional class 0 (570)
From net realized gain from sale of
investments
Class A 0 (1,721,568)
Class B 0 0
Institutional class 0 (48,077)
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold - Class A 5,553,171 37,948,187
Reinvestment of dividends - Class A 1,573,478 5,135,618
Cost of shares redeemed - Class A (21,530,634) (58,589,767)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (14,403,985) (15,505,962)
Proceeds from shares sold - Class B 0 0
Reinvestment of dividends - Class B 0 0
Cost of shares redeemed - Class B 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 0 0
Proceeds from shares sold -
Institutional class 0 1,267,997
Reinvestment of dividends -
Institutional class 0 208,022
Cost of shares redeemed - Institutional
class 0 (18,222,796)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 0 (16,746,777)
INCREASE (DECREASE) IN NET ASSETS (11,927,777) (32,370,456)
NET ASSETS:
Beginning net assets 84,961,107 117,331,563
ENDING NET ASSETS $ 73,033,330 $ 84,961,107
- -----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2010 Fund LifePath 2020 Fund
- ------------------------------------ --------------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
August 31, 1997 Year Ended August 31, 1997 Year Ended
(Unaudited) February 28, 1997 (Unaudited) February 28, 1997
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,301,677 $ 2,438,078 $ 1,789,755 $ 3,165,347
2,095,596 2,784,852 2,971,418 8,285,130
3,388,506 704,734 10,211,562 3,932,094
6,785,779 5,927,664 14,972,735 15,382,571
(1,380,533) (2,393,878) (1,714,211) (3,234,978)
(2,719) 0 (6,978)
(791) (1,673) (911) (1,862)
0 (999,794) 0 (4,457,911)
0 0 0 0
0 (138,908) 0 (97,440)
8,936,604 34,070,450 15,923,959 52,706,149
1,364,346 3,206,892 1,691,288 3,353,041
(13,328,256) (26,504,856) (20,138,198) (43,292,145)
(3,027,306) 10,772,486 (2,522,951) 12,767,045
2,141,903 0 4,961,345 0
2,688 0 6,754 0
(13,511) 0 (10,106) 0
2,131,080 0 4,957,993 0
0 2,529,219 0 1,484,241
791 289,983 911 349,700
(24,943) (34,601,841) (43) (38,954,344)
(24,152) (31,782,639) 868 (37,120,403)
4,481,358 (18,616,742) 15,686,545 (16,762,978)
83,019,269 101,636,011 146,294,743 163,057,721
$ 87,500,627 $ 83,019,269 $ 161,981,288 $ 146,294,743
- ------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------
<TABLE>
<CAPTION>
LifePath 2030 Fund
-----------------------------------
For the
Six Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- -----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 1,015,795 $ 1,657,635
Net realized gain (loss) on sale of
investments 1,471,096 4,461,859
Net change in unrealized appreciation
(depreciation) of investments 9,586,351 5,090,075
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 12,073,242 11,209,569
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (935,793) (1,710,475)
Class B (5,286) 0
Institutional class (745) (5,645)
From net realized gain from sale of
investments
Class A 0 (2,265,932)
Class B 0 0
Institutional class 0 (61,335)
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold - Class A 10,979,502 30,971,697
Reinvestment of dividends - Class A 928,424 3,826,842
Cost of shares redeemed - Class A (11,632,980) (27,148,781)
NET INCREASE (DECREASE) IN NET SHARES
OUTSTANDING -
CLASS A 274,946 7,649,758
Proceeds from shares sold - Class B 4,532,880 0
Reinvestment of dividends - Class B 5,305 0
Cost of shares redeemed - Class B (14,442) 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 4,523,743 0
Proceeds from shares sold -
Institutional class 0 1,939,792
Reinvestment of dividends -
Institutional class 745 188,977
Cost of shares redeemed - Institutional
class (818) (24,283,479)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (73) (22,154,710)
INCREASE (DECREASE) IN NET ASSETS 15,930,034 (7,338,770)
NET ASSETS:
Beginning net assets 101,119,457 108,458,227
ENDING NET ASSETS $ 117,049,491 $ 101,119,457
- -----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2040 Fund
- -----------------------------------------------------------------------------
For the
Six Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- ---------------------------------------------
<S> <C>
$ 1,239,038 $ 2,019,898
10,519,486 13,884,725
13,649,370 11,621,464
25,407,894 27,526,087
(1,176,194) (2,045,803)
(5,678)
(152) (338)
0 (7,609,699)
0 0
0 (797,501)
28,462,647 76,803,382
1,168,228 2,589,866
(26,583,537) (52,840,894)
3,047,338 26,552,354
10,863,600 0
5,553 0
(120,011) 0
10,749,142 0
0 1,917,732
152 248,730
0 (32,335,375)
152 (30,168,913)
38,022,502 13,456,187
189,579,925 176,123,738
$ 227,602,427 $ 189,579,925
- ------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2000 Fund
-----------------------------------------------------------------------------------------------
Six Months Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
---------------------- ---------------------- ----------------------- ----------------------
Class Institutional Class Institutional Class Institutional Class Institutional
A Class A Class A Class A Class
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.71 $ 9.79 $ 10.64 $10.67 $ 9.92 $ 9.94 $ 10.00 $10.00
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.23 0.21 0.42 1.29 0.40 0.42 0.34 0.35
Net realized and
unrealized gain (loss)
on investments 0.35 0.34 0.28 (0.60) 0.86 0.86 (0.14) (0.12)
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM INVESTMENT
OPERATIONS 0.58 0.55 0.70 0.69 1.26 1.28 0.20 0.23
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.22) 0.00 (0.42) (1.36) (0.41) (0.42) (0.27) (0.28)
Distributions from net
realized capital gains 0.00 0.00 (0.21) (0.21) (0.13) (0.13) (0.01) (0.01)
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM DISTRIBUTIONS (0.22) 0.00 (0.63) (1.57) (0.54) (0.55) (0.28) (0.29)
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, END OF
PERIOD $ 11.07 $10.34 $ 10.71 $ 9.79 $ 10.64 $ 10.67 $ 9.92 $ 9.94
<CAPTION>
======= ============= ======= ============= ======== ============= ======= =============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN (NOT
ANNUALIZED) 5.51% 5.62% 6.74% 7.23% 12.98% 13.19% 2.10% 2.38%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000) $73,020 $ 13 $84,949 $ 12 $100,070 $17,262 $54,617 $7,499
Number of shares
outstanding, end of
period (000) 6,599 1 7,934 1 9,406 1,618 5,503 754
RATIOS TO AVERAGE NET
ASSETS (ANNUALIZED):(/1/)
Ratio of expenses to
average net assets 1.20% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
Ratio of net
investment income to
average net assets 4.00% 4.24% 3.93% 4.17% 4.00% 4.23% 4.62% 4.89%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2010 Fund
- ------------------------------------------------------------------------------------------------------
Six Months Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
- ------------------------------ ---------------------- ---------------------- ----------------------
Class Class Institutional Class Institutional Class Institutional Class Institutional
A B Class A Class A Class A Class
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 12.20 $12.02 $10.94 $ 11.42 $11.47 $ 9.99 $ 10.02 $ 10.00 $ 10.00
<CAPTION>
- ------- ------ ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0.19 0.03 0.22 0.34 1.57 0.32 0.34 0.34 0.33
0.82 0.85 0.69 0.95 (0.36) 1.58 1.60 (0.02) 0.01
<CAPTION>
- ------- ------ ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1.01 0.88 0.91 1.29 1.21 1.90 1.94 0.32 0.34
(0.21) 0.00 (0.22) 0.34 (1.57) (0.33) (0.35) (0.28) (0.27)
0.00 0.00 0.00 (0.17) (0.17) (0.14) (0.14) (0.05) (0.05)
<CAPTION>
- ------- ------ ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(0.21) 0.00 (0.22) (0.51) (1.74) (0.47) (0.49) (0.33) (0.32)
<CAPTION>
- ------- ------ ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.00 $12.90 $11.63 $ 12.20 $10.94 $ 11.42 $ 11.47 $ 9.99 $ 10.02
<CAPTION>
======= ====== ============= ======= ============= ======= ============= ======= =============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
8.34% 7.80% 8.45% 11.60 % 11.89% 19.40% 19.69% 3.31% 3.53%
$85,324 $2,150 $ 27 $82,971 $ 49 $67,178 $34,458 $36,764 $13,028
6,564 167 2 6,801 4 5,883 3,004 3,679 1,300
1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
3.06% 2.56% 3.32% 3.16% 3.41% 3.06% 3.27% 4.40% 4.61%
- -------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2020 Fund
---------------------------------------------------------------------------------------
Six Months
Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
---------------------------- ------------------ ------------------ -----------------
Institu- Institu- Institu- Institu-
Class Class tional Class tional Class tional Class tional
A B Class A Class A Class A Class
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.98 $ 12.79 $ 12.28 $ 11.98 $ 11.98 $ 10.17 $ 10.17 $ 10.00 $ 10.00
<CAPTION>
-------- -------- -------- -------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.16 0.03 0.17 0.27 0.96 0.27 0.29 0.28 0.30
Net realized and
unrealized gain on
investments 1.19 1.20 1.12 1.43 0.72 2.03 2.03 0.12 0.12
<CAPTION>
-------- -------- -------- -------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM INVESTMENT
OPERATIONS 1.35 1.23 1.29 1.70 1.68 2.30 2.32 0.40 0.42
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.15) 0.00 (0.16) (0.28) (0.96) (0.28) (0.30) (0.23) (0.25)
Distributions from net
realized capital gains 0.00 0.00 0.00 (0.42) (0.42) (0.21) (0.21) 0 .00 0.00
<CAPTION>
-------- -------- -------- -------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM DISTRIBUTIONS (0.15) 0.00 (0.16) (0.70) (1.38) (0.49) (0.51) (0.23) (0.25)
<CAPTION>
-------- -------- -------- -------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, END OF
PERIOD $ 14.18 $14.02 $13.41 $ 12.98 $12.28 $ 11.98 $ 11.98 $ 10.17 $ 10.17
<CAPTION>
======== ======== ======== ======== ======== ======== ======== ======= ========
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN (NOT
ANNUALIZED) 10.52% 9.96% 10.61% 14.65 % 15.14% 22.94% 23.18% 4.12% 4.39%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000) $156,819 $5,086 $ 76 $146,226 $ 69 $122,488 $40,570 $66,036 $16,618
Number of shares
outstanding, end of
period (000) 11,062 363 6 11,264 6 10,224 3,385 6,494 1,634
RATIOS TO AVERAGE NET
ASSETS
(ANNUALIZED):(/1/)
Ratio of expenses to
average net assets 1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 0.95% 0.95%
Ratio of net investment
income to average net
assets 2.35% 1.85% 2.60% 2.33% 2.57% 2.45% 2.68% 3.64% 3.88%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2030 Fund
- ---------------------------------------------------------------------------------------
Six Months
Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb 28, 1995
- ---------------------------- ------------------ ------------------ -----------------
Institu- Institu- Institu- Institu-
Class Class tional Class tional Class tional Class tional
A B Class A Class A Class A Class
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.83 $13.63 $13.70 $ 12.34 $12.37 $ 10.17 $ 10.18 $ 10.00 $10.00
- -------- -------- -------- -------- -------- -------- -------- ------- --------
0.14 .02 0.16 0.22 0.49 0.21 0.23 0.26 0.29
1.50 1.48 1.37 1.83 1.66 2.45 2.47 0.13 0.14
- -------- -------- -------- -------- -------- -------- -------- ------- --------
1.64 1.50 1.53 2.05 2.15 2.66 2.70 0.39 0.43
(0.13) 0.00 (0.25) (0.23) (0.49) (0.22) (0.24) (0.22) (0.25)
0.00 0.00 0.00 (0.33) (0.33) (0.27) (0.27) 0.00 0.00
- -------- -------- -------- -------- -------- -------- -------- ------- --------
(0.13) 0.00 (0.25) (0.56) (0.82) (0.49) (0.51) (0.22) (0.25)
- -------- -------- -------- -------- -------- -------- -------- ------- --------
$ 15.34 $15.13 $14.98 $ 13.83 $13.70 $ 12.34 $ 12.37 $ 10.17 $10.18
======== ======== ======== ======== ======== ======== ======== ======= ========
11.92% 11.30% 11.39% 17.01% 18.13% 26.53% 26.88% 4.03% 4.42%
$112,371 $4,634 $ 45 $101,078 $ 41 $83,012 $25,447 $41,153 $9,682
7,323 306 3 7,307 3 6,728 2,058 4,045 951
1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
1.88% 1.38% 2.10% 1.81% 2.06% 1.92% 2.15% 3.35% 3.59%
- ----------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2040 Fund
----------------------------------------------------------------------------------------------------------
Six Months Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
-------------------------------- ----------------------- ----------------------- ----------------------
Class Class Institutional Class Institutional Class Institutional Class Institutional
A B Class A Class A Class A Class
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 14.50 $ 14.29 $13.94 $ 12.84 $12.86 $ 10.37 $ 10.37 $ 10.00 $10.00
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income 0.09 0.01 0.11 0.16 0.63 0.15 0.17 0.18 0.20
Net realized and
unrealized gain on
investments 1.82 1.74 1.74 2.35 1.78 2.82 2.84 0.34 0.34
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM
INVESTMENT
OPERATIONS 1.91 1.75 1.85 2.51 2.41 2.97 3.01 0.52 0.54
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.09) 0.00 (0.10) (0.16) (0.64) (0.16) (0.18) (0.15) (0.17)
Distributions from
net realized
capital gains 0.00 0.00 0.00 (0.69) (0.69) (0.34) (0.34) 0 0
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM
DISTRIBUTIONS (0.09) 0.00 (0.10) (0.85) (1.33) (0.50) (0.52) (0.15) (0.17)
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, END
OF PERIOD $ 16.32 $ 16.04 $15.69 $ 14.50 $13.94 $ 12.84 $ 12.86 $ 10.37 $10.37
<CAPTION>
======== ======= ============= ======== ============= ======== ============= ======= =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN (NOT
ANNUALIZED) 13.22% 7.41% 13.36% 20.17% 19.89% 28.91% 29.32% 5.26% 5.55%
RATIOS/SUPPLEMENTAL DATA:
Net assets,
end of period
(000) $216,662 $10,917 $ 23 $189,560 $ 20 $142,738 $33,386 $56,737 $9,976
Number of shares
outstanding, end
of period (000) 13,277 680 1 13,073 1 11,114 2,596 5,472 962
RATIOS TO AVERAGE NET
ASSETS (ANNUALIZED):(/1/)
Ratio of expenses
to average net
assets 1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
Ratio of net
investment income
to average net
assets 1.20% 0.70% 1.45% 1.22% 1.47% 1.29% 1.53% 2.35% 2.61%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these Financial Statements.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended, (the "1940 Act") as an open-end management investment com-
pany. 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-
sues separate funds, which commenced operations on March 1, 1994: LifePath
2000, LifePath 2010, LifePath 2020, LifePath 2030 and LifePath 2040 Funds
(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 compa-
nies. The preparation of financial statements in conformity with generally ac-
cepted accounting principles requires management to make estimates and assump-
tions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Each Fund is authorized to issue three classes of shares: Class A, Class B and
an Institutional Class. On March 1, 1997, the Retail Class' name was changed to
Class A and the Fund commenced offering Class B shares. The three 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. Divi-
dends 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. Nei-
ther 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
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
"Master Portfolio") of Master Investment Portfolio ("MIP"). Each Master Portfo-
lio has the same investment objective as the Fund bearing the corresponding
name. The value of each Fund's investment in its corresponding Master Portfolio
reflects that Fund's interest in the net assets of that Master Portfolio
(61.41%, 47.04%, 56.06%, 61.70%, and 70.68%) for the LifePath 2000, LifePath
2010, LifePath 2020, LifePath 2030 and LifePath 2040 Funds, respectively, at
August 31, 1997. The Master Portfolios invest in a wide range of U.S. and for-
eign equity, debt securities and money market instruments. Each Master Portfo-
lio follows an asset allocation strategy among three broad investing 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 Port-
folios are valued at the last reported sale price on the primary securities ex-
change or national securities market on which such securities are traded. Secu-
rities not listed on an exchange or national securities market, or securities
in which there was no last reported sales price, 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 matur-
ing in 60 days or less, are valued at the latest quoted bid price. Any securi-
ties, restricted securities or other assets for which market quotations are not
readily available are valued at fair value as determined in good faith in ac-
cordance with policies approved by the Master Portfolios' Board of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for by each Master Portfolio on the date
the securities are purchased or sold (trade date). Revenue is recognized by
each Master Portfolio as follows: dividend income is recognized on the ex-divi-
dend 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 de-
livered. Bond discounts and premiums are amortized as required by the Internal
Revenue Code of 1986, as amended (the "Code"). All net investment income and
realized and unrealized capital gains and losses of each Master Portfolio are
allocated as required by the Code.
The performance of each Fund is directly affected by the performance of its
corresponding Master Portfolio. The financial statements of each Master Portfo-
lio, including the Portfolio of Investments, are included elsewhere in this re-
port and should be read in conjunction with the corresponding Fund's financial
statements.
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Each Fund declares and pays dividends to shareholders from net investment in-
come quarterly. Distributions to shareholders from any net realized capital
gains are declared and distributed annually, generally in December.
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal in-
come tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by
the Fund.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions applicable to investment companies, as
set forth in the Code, and to make distributions of investment company taxable
income and net capital gains (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.
ORGANIZATION EXPENSES
Stephens Inc. ("Stephens"), the Funds' co-administrator, sponsor and distribu-
tor, 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 cer-
tain financial institutions, securities dealers and other industry profession-
als (collectively, "Shareholder Servicing Agents") for the provision of certain
services to Fund shareholders. For the services provided pursuant to a Share-
holder Servicing Agreement, the Trust may pay each Shareholder Servicing Agent
a fee of up to 0.20% of the average daily net asset 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 Barclays Global Invest-
ors, N.A. ("BGI").
The Trust has entered into an agreement with Stephens on behalf of Class A and
Class B shares for distribution services and has
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
adopted Plans 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 re-
ceive 0.25% of the average daily net assets of Class A shares on an annual ba-
sis and 0.75% of the average daily net assets on an annual basis.
Investors Bank & Trust Company ("IBT") serves as the custodian to each Fund
and its corresponding Master Portfolio. IBT will not be entitled to receive
fees for its custodial services so long as it is entitled to receive a sepa-
rate fee from WFB for its services as Sub-Administrator of the Funds.
The Trust has entered into administration services arrangements with WFB and
Stephens, as co- administrators, who have agreed jointly to provide general
administration services to the Funds, such as managing and coordinating third-
party service relationships. Under the new arrangement, WFB and Stephens are
entitled to receive for these services a combined fee (expressed as a percent-
age of average daily net assets) from each Fund of 0.10%. This fee is an "all-
in" or "semi-unified" fee and WFB and Stephens, in consideration thereof, have
agreed to bear all of the Funds' ordinary operating expenses, excluding, gen-
erally, advisory fees and costs related to securities transactions. WFB and
Stephens may delegate certain of their administration duties to sub-adminis-
trators.
Certain officers and directors of the Trust are also officers of Stephens. At
August 31, 1997, these officers of Stephens collectively owned less than 1% of
the Funds' outstanding shares.
24
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
3. CAPITAL SHARE TRANSACTIONS
As of August 31, 1997, the Trust has authorized an unlimited number of shares
of beneficial interest. Transactions in capital shares for each Fund were as
follows:
<TABLE>
<CAPTION>
LifePath 2000 Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 508,624 3,580,908
Shares issued in reinvestments of
dividends - Class A 147,167 486,593
Shares redeemed - Class A (1,990,978) (5,539,884)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS A (1,335,187) (1,472,383)
Shares sold - Class B 0 0
Shares issued in reinvestments of
dividends - Class B 0 0
Shares redeemed - Class B 0 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS B 0 0
Shares sold - Institutional Class 0 119,465
Shares issued in reinvestments of
dividends -Institutional Class 0 19,942
Shares redeemed - Institutional Class 0 (1,755,819)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -INSTITUTIONAL CLASS 0 (1,616,412)
<CAPTION>
LifePath 2010 Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 711,780 2,915,095
Shares issued in reinvestments of
dividends - Class A 110,777 275,092
Shares redeemed - Class A (1,059,450) (2,272,271)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS A (236,893) 917,916
Shares sold - Class B 167,449 0
Shares issued in reinvestments of
dividends - Class B 212 0
Shares redeemed - Class B (1,046) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS B 166,615 0
Shares sold - Institutional Class 0 221,309
Shares issued in reinvestments of
dividends -Institutional Class 72 25,767
Shares redeemed - Institutional Class (2,198) (3,246,296)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -INSTITUTIONAL CLASS (2,126) (2,999,220)
</TABLE>
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 1,159,872 4,270,394
Shares issued in reinvestments of
dividends - Class A 127,107 275,620
Shares redeemed - Class A (1,489,098) (3,506,234)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS A (202,119) 1,039,780
Shares sold - Class B 363,082 0
Shares issued in reinvestments of
dividends - Class B 487 0
Shares redeemed - Class B (727) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS B 362,842 0
Shares sold - Institutional Class 0 124,129
Shares issued in reinvestments of
dividends -Institutional Class 73 29,678
Shares redeemed - Institutional Class (3) (3,533,425)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - INSTITUTIONAL CLASS 70 (3,379,618)
<CAPTION>
LifePath 2030 Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 750,536 2,403,224
Shares issued in reinvestments of
dividends - Class A 64,744 296,195
Shares redeemed - Class A (798,644) (2,120,516)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS A 16,636 578,903
Shares sold - Class B 306,891 0
Shares issued in reinvestments of
dividends - Class B 355 0
Shares redeemed - Class B (939) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS B 306,307 0
Shares sold - Institutional Class 0 156,936
Shares issued in reinvestments of
dividends -Institutional Class 55 15,512
Shares redeemed - Institutional Class (60) (2,227,326)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - INSTITUTIONAL CLASS (5) (2,054,878)
</TABLE>
26
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2040 Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 1,837,582 5,678,582
Shares issued in reinvestments of
dividends - Class A 77,145 196,508
Shares redeemed - Class A (1,711,392) (3,916,082)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS A 203,335 1,959,008
Shares sold - Class B 687,879 0
Shares issued in reinvestments of
dividends - Class B 350 0
Shares redeemed - Class B (7,799) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS B 680,430 0
Shares sold - Institutional Class 0 148,636
Shares issued in reinvestments of
dividends -Institutional Class 10 19,679
Shares redeemed - Institutional Class 0 (2,763,338)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - INSTITUTIONAL CLASS 10 (2,595,023)
</TABLE>
4.PORTFOLIO SECURITIES LOANED
As of August 31, 1997, certain Master Portfolios had loaned securities which
were collateralized by cash, money market mutual funds, and repurchase
agreements. Each Master Portfolio receives transaction fees for providing
services in connection with the securities lending program. The value of the
securities on loan and the value of the related collateral are disclosed in the
corresponding Master Investment Portfolio financial statements.
27
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS
PERCENT OF NET ASSETS 21.51% 46.15%
LARGE CAP GROWTH STOCKS
PERCENT OF NET ASSETS 4.24% 14.85%
3Com Corp* 1,875 $ 93,633 2,629 $ 131,286
Abbott Laboratories 1,011 60,597 6,135 367,717
Adobe Systems Inc 120 4,732 540 21,275
Aeroquip-Vickers Inc 50 2,794 232 12,963
Air Products & Chemicals Inc 125 10,195 902 73,569
Allegheny Teledyne Inc 256 7,904 1,464 45,201
Allied Signal Inc 449 37,071 2,213 182,711
ALZA Corp* 118 3,422 663 19,227
American Express Corp 741 57,613 3,760 292,340
American Home Products Corp 1,038 74,736 5,085 366,120
American International Group
Inc 1,064 100,368 5,552 523,970
Ameritech Corp 833 52,219 4,319 270,747
Amgen Inc 366 18,140 2,078 102,991
Anadarko Petroleum Corp 439 32,239 500 36,719
Andrew Corp* 156 3,881 726 18,047
Anheuser-Busch Inc 632 26,939 3,892 165,897
Applied Materials Inc* 250 23,594 1,446 136,466
Armco Inc* 107 635 908 5,391
Autodesk Inc 84 3,675 395 17,281
Automatic Data Processing 396 18,043 2,364 107,710
Avery Dennison Corp 96 3,942 822 33,753
Avon Products Inc 154 9,866 1,031 66,048
Baxter International Inc 459 24,413 2,178 115,842
Bay Networks* 293 10,365 1,591 56,282
Becton Dickinson & Co 154 7,382 1,034 49,567
Biomet Inc 127 2,635 979 20,314
Block (H R) Inc 111 4,357 884 34,697
Boston Scientific Corp* 293 20,657 1,586 111,813
Bristol-Myers Squibb Co 1,442 109,592 7,873 598,348
Cabletron Systems Inc* 250 7,563 1,268 38,357
Cardinal Health Inc 112 7,387 844 55,915
Ceridian Corp* 127 4,389 599 20,703
Charles Schwab & Co Inc 178 7,554 1,424 60,431
Chase Manhattan Bank 511 56,817 3,454 384,042
Cisco Systems Inc* 848 63,918 5,211 392,779
Clorox Co 45 5,906 432 56,700
Coca-Cola Co 3,632 208,159 19,649 1,126,133
Cognizant Corp 173 7,266 1,362 57,204
Colgate-Palmolive Co 366 22,967 2,333 146,396
Comcast Corp Class A 440 10,313 2,797 65,555
Compaq Computer Corp* 980 64,190 5,418 354,847
Computer Associates
International Inc 428 28,623 2,892 193,403
</TABLE>
28
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
64.91% 78.80% 93.50%
21.40% 26.15% 34.13%
6,041 $ 301,672 4,831 $ 241,248 10,498 $ 524,244
13,709 821,683 11,021 660,571 24,418 1,463,554
1,266 49,829 1,015 39,964 2,292 90,248
523 29,223 413 23,076 953 53,249
1,973 160,923 1,597 130,255 3,500 285,469
3,122 96,392 2,472 76,323 5,628 173,765
5,063 418,014 4,065 335,617 8,935 737,696
1,428 41,412 1,074 31,146 2,756 79,924
8,431 655,510 6,707 521,469 14,933 1,161,041
11,458 824,976 9,176 660,672 20,351 1,465,272
12,479 1,177,660 10,147 957,577 22,189 2,094,088
9,766 612,206 7,854 492,348 17,309 1,085,058
4,848 240,279 3,881 192,352 8,542 423,363
1,101 80,855 946 69,472 1,715 125,945
1,568 39,004 1,252 31,131 3,035 75,483
8,844 376,976 7,214 307,497 15,660 667,508
3,173 299,452 2,629 248,112 5,681 536,144
1,837 10,907 1,271 7,547 3,282 19,487
922 40,338 624 27,300 1,544 67,550
5,284 240,752 4,245 193,413 9,399 428,242
1,818 74,652 1,484 60,937 3,315 136,122
2,410 154,391 1,925 123,320 4,219 270,280
5,035 267,799 4,026 214,133 8,940 475,496
3,561 125,970 2,814 99,545 6,387 225,940
2,248 107,764 1,742 83,507 3,883 186,141
2,134 44,281 1,561 32,391 3,590 74,493
1,880 73,790 1,468 57,619 3,330 130,703
3,511 247,526 2,828 199,374 6,232 439,356
17,755 1,349,380 14,217 1,080,492 31,544 2,397,344
2,737 82,794 2,285 69,121 4,985 150,796
1,931 127,896 1,598 105,868 3,496 231,577
1,436 49,632 1,113 38,468 2,611 90,243
3,194 135,545 2,504 106,264 5,603 237,777
7,639 849,361 6,092 677,354 13,588 1,510,816
11,798 889,274 9,420 710,033 20,910 1,576,091
953 125,081 711 93,319 1,623 213,019
43,963 2,519,629 35,231 2,019,177 78,262 4,485,391
3,005 126,210 2,348 98,616 5,409 227,178
5,321 333,893 4,333 271,896 9,269 581,630
6,374 149,391 4,887 114,539 11,266 264,047
12,125 794,188 9,735 637,643 21,668 1,419,222
6,559 438,633 5,309 355,039 11,482 767,859
</TABLE>
29
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Computer Sciences Corp* 138 $ 10,264 633 $ 47,079
ConAgra Inc 284 18,265 1,914 123,094
Corning Inc 311 16,444 1,845 97,554
CPC International Inc 137 12,210 1,120 99,820
CUC International Inc* 515 12,103 3,355 78,831
CVS Corp 640 36,080 1,334 75,204
Dayton-Hudson Corp 275 15,675 1,752 99,864
Dell Computer Corp* 340 27,901 2,648 217,302
Dover Corp 150 10,359 927 64,021
Dun & Bradstreet Corp 173 4,844 1,462 40,936
DuPont (E I) de Nemours 1,592 99,202 8,944 557,323
Eastman Kodak Co 379 24,777 2,634 172,198
Ecolab Inc 60 2,704 476 21,450
EMC Corp* 308 15,804 1,946 99,854
Equifax Inc 1,410 41,507 1,400 41,213
Federal National Mortgage
Assn 1,416 62,304 8,385 368,940
Fifth Third Bancorp 266 15,561 1,317 77,045
First Data Corp 544 22,338 3,612 148,318
Fort James Corp 568 23,856 1,166 48,972
Foster Wheeler Corp 100 4,569 323 14,757
Freeport-McMoRan Copper &
Gold Inc Class A 38 1,017 28 749
Freeport-McMoRan Copper &
Gold Inc Class B 222 6,216 1,597 44,716
Gannett Co Inc 133 12,959 1,163 113,320
Gap Inc 308 13,687 2,224 98,829
General Electric Co 4,644 290,250 25,997 1,624,813
General Mills Inc 203 13,017 1,265 81,118
Gillette Co 697 57,737 4,434 367,207
Grace (W R) Co 39 2,684 605 41,632
GTE Corp 1,326 59,090 7,539 335,957
Guidant Corp 50 4,391 623 54,707
Halliburton Co 250 11,938 2,014 96,169
Healthsouth Corp* 488 12,170 2,697 67,256
Heinz (H J) Co 474 19,730 2,982 124,126
Hercules Inc 88 4,549 835 43,159
Hershey Foods Corp 208 11,102 1,193 63,676
Hilton Hotels Corp 293 8,991 2,004 61,498
Home Depot Inc 1,152 54,360 5,762 271,895
Honeywell Inc 179 12,373 985 68,088
Illinois Tool Works Inc 348 16,835 2,006 97,040
Intel Corp 2,332 214,836 13,010 1,198,546
International Flavors &
Fragrances 171 8,742 897 45,859
Interpublic Group Cos Inc 123 5,996 976 47,580
Johnson & Johnson 1,876 106,346 10,532 597,033
Jostens Inc 105 2,533 263 6,345
Kellogg Co 438 19,601 3,284 146,959
</TABLE>
30
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,399 $ 104,051 1,143 $ 85,011 2,498 $ 185,789
4,298 276,415 3,507 225,544 7,673 493,470
4,206 222,392 3,312 175,122 7,238 382,709
2,639 235,201 2,079 185,291 4,551 405,608
7,395 173,783 5,749 135,090 13,125 308,438
3,046 171,718 2,425 136,709 5,406 304,763
3,909 222,813 3,207 182,799 6,952 396,264
5,970 489,913 4,774 391,766 10,588 868,878
2,014 139,092 1,578 108,981 3,577 247,037
3,170 88,760 2,421 67,788 5,545 155,260
20,064 1,250,238 16,098 1,003,107 35,608 2,218,824
5,789 378,456 4,758 311,054 10,333 675,520
1,175 52,948 933 42,043 2,141 96,479
4,496 230,701 3,620 185,751 7,945 407,678
3,642 107,211 2,672 78,657 4,840 142,478
18,859 829,796 15,133 665,852 33,496 1,473,824
2,922 170,937 2,302 134,667 5,141 300,749
8,102 332,688 6,491 266,537 14,170 581,856
2,474 103,908 2,084 87,528 3,973 166,866
691 31,570 554 25,311 1,292 59,028
52 1,391 38 1,017 236 6,313
3,543 99,204 2,804 78,512 6,437 180,236
2,583 251,681 2,067 201,403 4,490 437,494
4,920 218,633 4,019 178,594 8,838 392,739
58,212 3,638,250 46,648 2,915,500 103,524 6,470,250
2,969 190,387 2,282 146,333 5,177 331,975
9,862 816,680 7,903 654,500 17,604 1,457,815
1,263 86,910 1,174 80,786 2,386 164,187
16,901 753,151 13,544 603,555 30,134 1,342,846
1,334 117,142 1,031 90,535 2,423 212,770
4,522 215,926 3,634 173,524 8,162 389,736
6,150 153,366 4,868 121,396 11,100 276,806
6,648 276,723 5,337 222,153 11,800 491,175
1,817 93,916 1,391 71,897 3,271 169,070
2,509 133,918 2,015 107,551 4,479 239,067
4,521 138,738 3,514 107,836 7,991 245,224
12,872 607,398 10,363 489,004 23,005 1,085,549
2,261 156,292 1,861 128,642 4,076 281,754
4,521 218,703 3,625 175,359 8,005 387,242
29,064 2,677,521 23,356 2,151,672 51,712 4,763,968
1,964 100,410 1,519 77,659 3,521 180,011
2,200 107,250 1,770 86,288 3,969 193,489
23,673 1,341,963 18,997 1,076,892 42,067 2,384,673
650 15,681 538 12,979 1,237 29,843
7,386 330,524 6,074 271,812 13,170 589,358
</TABLE>
31
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Kimberly-Clark Corp 762 $ 36,147 4,418 $ 209,579
Kroger Co* 330 9,941 1,994 60,069
Lilly (Eli) & Co 776 81,189 4,400 460,350
LSI Logic Corp* 122 3,927 1,103 35,503
Lucent Technologies Inc 942 73,358 5,082 395,761
Marriott International 173 11,515 1,052 70,024
Marsh & McLennan Companies
Inc 260 17,745 1,348 92,001
Mattel Inc 358 11,971 2,292 76,639
MBNA Corp 415 15,952 2,720 104,531
McDonald's Corp 940 44,474 5,499 260,171
Medtronic Inc 350 31,631 1,908 172,436
Merck & Co Inc 1,722 158,101 9,525 874,514
Microsoft Corp* 1,768 233,708 9,505 1,256,442
Millipore Corp 50 2,475 357 17,672
Minnesota Mining &
Manufacturing Co 667 59,947 3,289 295,599
Monsanto Co 715 31,415 4,731 207,868
Newell Co 252 9,923 1,264 49,770
Newmont Mining Corp 157 6,643 1,270 53,737
NextLevel Systems Inc* 150 3,009 142 2,849
Nike Inc Class B 370 19,749 2,289 122,175
Northern Telecom Ltd 290 28,746 2,077 205,883
Oracle Systems Corp* 1,265 48,209 7,704 293,715
Oryx Energy Co* 195 5,155 797 21,071
Owens Corning Fiberglass
Corp 26 1,055 389 15,779
Owens Illinois Inc* 700 24,369 1,100 38,294
Pall Corp 178 4,216 1,033 24,469
Parametric Technology Corp* 120 5,573 999 46,391
Pepsico Inc 2,198 79,128 12,105 435,780
Perkin-Elmer Corp 27 1,998 387 28,638
Pfizer Inc 2,040 112,965 10,262 568,258
Philip Morris Co Inc 3,578 156,090 19,273 840,785
Pioneer Hi Bred
International 132 11,311 649 55,611
Pitney Bowes Inc 152 11,609 1,161 88,671
Praxair Inc 211 11,275 1,225 65,461
Procter & Gamble Co 973 129,470 5,356 712,683
Quaker Oats Co 136 6,392 1,116 52,452
Ralston-Ralston Purina Group 151 13,590 851 76,590
Raychem Corp 25 2,327 386 35,922
Reebok International Ltd 95 4,174 405 17,795
Rite Aid Corp 104 5,207 1,036 51,865
Rubbermaid Inc 156 3,900 1,265 31,625
Sara Lee Corp 613 24,673 3,850 154,963
SBC Communications Inc 1,214 66,011 7,249 394,164
Schering-Plough Corp 1,152 55,296 5,820 279,360
Schlumberger Ltd 554 42,208 3,870 294,846
</TABLE>
32
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
9,954 $ 472,193 7,978 $ 378,456 17,688 $ 839,075
4,574 137,792 3,588 108,089 8,140 245,218
9,852 1,030,766 7,863 822,666 17,506 1,831,565
2,600 83,688 1,939 62,412 4,541 146,163
11,353 884,115 9,107 709,208 20,170 1,570,739
2,327 154,891 1,787 118,947 4,056 269,978
3,040 207,480 2,368 161,616 5,360 365,820
5,220 174,544 4,257 142,343 9,418 314,914
6,029 231,721 4,866 187,037 10,749 413,165
12,189 576,692 9,995 472,888 21,791 1,030,987
4,322 390,601 3,432 310,167 7,549 682,241
21,401 1,964,879 17,186 1,577,890 38,046 3,493,098
21,215 2,804,358 17,006 2,247,981 37,822 4,999,596
744 36,828 555 27,473 1,461 72,320
7,354 660,941 5,932 533,139 13,110 1,178,261
10,486 460,729 8,602 377,950 18,697 821,499
2,845 112,022 2,273 89,499 5,086 200,261
2,748 116,275 2,182 92,326 5,021 212,451
2,378 47,709 1,838 36,875 4,656 93,411
5,229 279,098 4,179 223,054 9,260 494,253
4,567 452,704 3,737 370,430 8,184 811,239
17,433 664,634 14,016 534,360 30,917 1,178,692
1,783 47,138 1,338 35,373 3,502 92,584
964 39,102 707 28,678 1,713 69,484
1,400 48,738 1,700 59,181 3,500 121,844
2,222 52,634 1,732 41,027 4,048 95,887
2,321 107,781 1,821 84,563 4,108 190,765
27,211 979,596 21,770 783,720 48,325 1,739,700
745 55,130 612 45,288 1,420 105,080
22,864 1,266,094 18,326 1,014,802 40,726 2,255,202
43,124 1,881,285 34,574 1,508,291 76,652 3,343,944
1,462 125,275 1,181 101,197 2,646 226,729
2,648 202,241 2,078 158,707 4,716 360,185
2,882 154,007 2,279 121,784 5,058 270,287
12,000 1,596,750 9,630 1,281,392 21,324 2,837,425
2,467 115,949 1,897 89,159 4,398 206,706
1,951 175,590 1,549 139,410 3,375 303,750
768 71,472 602 56,024 1,414 131,590
984 43,235 882 38,753 1,807 79,395
2,293 114,793 1,714 85,807 3,915 195,995
2,701 67,525 2,102 52,550 4,897 122,425
8,554 344,299 7,029 282,917 15,167 610,472
16,145 877,884 12,971 705,298 28,826 1,567,414
12,951 621,648 10,443 501,264 23,105 1,109,040
8,796 670,145 6,992 532,703 15,588 1,187,611
</TABLE>
33
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Shared Medical 40 $ 1,960 245 $ 12,005
Stanley Works 108 4,597 729 31,028
State Street Corp 1,438 71,720 1,500 74,813
Sun Microsystems Inc* 506 24,288 2,995 143,760
Sunamerica Inc 600 32,325 1,100 59,263
Sysco Corp 198 7,029 1,413 50,162
Tektronix Inc -- -- 236 13,113
Tele-Communications Inc* 1,012 17,710 5,282 92,435
Tellabs Inc* 250 14,922 1,405 83,861
Texas Instruments 322 36,587 1,467 166,688
TJX Cos Inc New 156 4,290 1,248 34,320
Tupperware Corp 61 2,047 475 15,942
Tyco International Ltd 416 32,630 1,901 149,110
Union Pacific Resources
Group 321 8,025 1,951 48,775
United Technologies 296 23,107 1,901 148,397
Unocal Corp 373 14,570 1,986 77,578
UST Inc 284 8,201 1,550 44,756
U.S. Air Group* 129 4,402 625 21,328
U.S. Bancorp 336 29,421 2,003 175,388
Walgreen Co 660 17,779 3,976 107,104
Wal-Mart Stores Inc 3,252 115,446 17,935 636,693
Warner Lambert Co 368 46,759 2,182 277,250
Whitman Corp 60 1,470 833 20,409
Winn Dixie 160 5,390 1,146 38,606
Wrigley (Wm) Jr Co 179 12,978 931 67,498
Xerox Corp 471 35,561 2,603 196,527
------------ ------------
TOTAL LARGE CAP GROWTH
STOCKS
- VALUE $ 5,059,589 $ 27,564,379
- COST $ 3,956,556 $ 18,334,202
LARGE CAP VALUE STOCKS
PERCENT OF NET ASSETS 2.30% 13.33%
Advanced Micro Devices* 94 $ 3,519 1,025 $ 38,373
Aetna Inc 168 16,034 1,136 108,417
Ahmanson (H F) & Co 130 6,598 731 37,098
Airtouch Communications* 388 13,119 3,756 127,000
Alberto Culver Co Class B -- -- 461 13,455
Albertson's Inc 194 6,669 1,877 64,522
Alcan Aluminum Ltd 218 7,616 1,699 59,359
Allergan Inc 62 2,007 477 15,443
Allstate Corp 304 22,211 3,217 235,042
Alltel Corp 121 3,827 1,358 42,947
Aluminum Co Of America 110 9,048 1,251 102,895
Amdahl Corp* 77 948 982 12,091
Amerada Hess Corp 38 2,209 711 41,327
</TABLE>
34
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
437 $ 21,413 346 $ 16,954 767 $ 37,583
1,670 71,079 1,223 52,054 2,834 120,622
3,770 188,029 2,900 144,638 5,580 278,303
6,657 319,536 5,377 258,096 11,862 569,376
2,400 129,300 1,900 102,363 4,200 226,275
3,110 110,405 2,574 91,377 5,570 197,735
582 32,337 415 23,058 1,032 57,341
12,176 213,080 9,755 170,713 21,394 374,395
3,236 193,149 2,627 156,799 5,811 346,844
3,348 380,417 2,736 310,878 6,035 685,727
2,764 76,010 2,190 60,225 5,042 138,655
1,074 36,046 865 29,032 2,008 67,394
4,395 344,733 3,538 277,512 7,834 614,479
4,479 111,975 3,642 91,050 8,204 205,111
4,220 329,424 3,472 271,033 7,449 581,488
4,535 177,148 3,688 144,063 8,066 315,078
3,268 94,364 2,503 72,274 5,945 171,662
1,400 47,775 1,105 37,708 2,623 89,510
4,547 398,147 3,480 304,718 6,917 605,670
8,968 241,576 7,104 191,364 15,816 426,044
40,183 1,426,497 32,259 1,145,195 71,485 2,537,718
4,847 615,872 3,881 493,130 8,546 1,085,876
1,948 47,726 1,420 34,790 3,310 81,095
2,708 91,226 2,200 74,113 4,838 162,980
2,148 155,730 1,682 121,945 3,712 269,120
5,783 436,617 4,694 354,397 10,228 772,214
------------ ------------ ------------
$ 61,832,074 $ 49,577,925 $109,730,714
$ 41,109,613 $ 31,887,572 $ 78,818,436
21.41% 25.86% 30.93%
2,635 $ 98,648 2,021 $ 75,661 4,269 $ 159,821
2,818 268,943 2,209 210,821 4,525 431,855
1,808 91,756 1,515 76,886 3,066 155,600
9,259 313,070 7,337 248,082 14,784 499,884
1,054 30,764 842 24,576 1,682 49,093
4,584 157,575 3,663 125,916 7,407 254,616
4,207 146,982 3,342 116,761 6,860 239,671
1,224 39,627 951 30,789 2,009 65,041
8,136 594,437 6,422 469,207 12,991 949,155
3,417 108,063 2,706 85,577 5,654 178,808
3,152 259,252 2,514 206,777 5,205 428,111
2,176 26,792 1,775 21,855 3,666 45,138
1,731 100,614 1,381 80,271 2,838 164,959
</TABLE>
35
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
American Electric Power Inc 98 $ 4,281 1,370 $ 59,852
American General Corp 166 7,999 1,794 86,448
American Greetings Corp
Class A 30 1,043 574 19,947
American Stores Co 250 5,922 2,072 49,081
Amoco Corp 394 37,258 3,692 349,125
AMP Inc 180 9,000 1,628 81,400
AMR Corp* 33 3,325 656 66,092
Aon Corp 60 3,056 1,240 63,163
Apache Corp 62 2,461 720 28,575
Apple Computer Inc* 130 2,828 936 20,358
Archer-Daniels-Midland Co 477 10,309 4,172 90,212
Armstrong World Industries
Inc -- -- 276 18,889
ASARCO Inc 23 707 284 8,733
Ashland Inc 106 5,313 575 28,822
AT & T Corp 1,245 48,555 12,000 468,000
Atlantic Richfield Corp 210 15,750 2,340 175,500
AutoZone Inc* 50 1,413 1,146 32,375
Baker Hughes Inc 121 5,127 1,233 52,248
Ball Corp 52 1,710 184 6,049
Baltimore Gas And Electric
Co 131 3,537 1,117 30,159
Banc One Corp 415 22,254 4,242 227,477
Bank Of New York Inc 278 12,406 2,841 126,780
BankAmerica Corp 542 35,670 5,218 343,410
BankBoston Corporation 150 12,469 1,040 86,450
Bankers Trust Corp 90 9,338 560 58,100
Bard (C R) Inc 41 1,415 430 14,835
Barnett Banks Inc 140 9,538 1,444 98,373
Barrick Gold Corp 307 6,984 2,780 63,245
Battle Mountain Gold Co 328 1,866 1,859 10,573
Bausch & Lomb Inc 54 2,217 367 15,070
Bell Atlantic Corp 659 47,719 6,018 435,535
Bellsouth Corp 838 36,872 7,333 322,652
Bemis Co 40 1,758 427 18,761
Beneficial Corp 42 3,006 430 30,772
Bethlehem Steel Corp* 62 744 890 10,680
Beverly Enterprises* 70 1,142 722 11,778
Black & Decker Corp 122 4,674 721 27,623
Boeing Co 800 43,550 7,293 397,013
Boise Cascade Corp 67 2,651 379 14,994
Briggs & Stratton Corp 50 2,416 157 7,585
Brown-Forman Corp Class B 71 3,426 513 24,752
Browning-Ferris Industries
Inc 138 4,821 1,540 53,804
Brunswick Corp 92 2,806 692 21,106
Burlington Northern Santa Fe 89 8,160 1,147 105,166
Burlington Resources Inc 77 3,898 883 44,702
</TABLE>
36
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,510 $ 153,343 2,715 $ 118,612 5,730 $ 250,329
4,483 216,025 3,530 170,102 7,113 342,758
1,361 47,295 1,138 39,546 2,264 78,674
4,970 117,727 3,950 93,566 8,212 194,522
9,102 860,708 7,190 679,904 14,697 1,389,785
4,049 202,450 3,213 160,650 6,626 331,300
1,649 166,137 1,330 133,998 2,761 278,171
3,052 155,461 2,435 124,033 4,977 253,516
1,649 65,445 1,284 50,959 2,835 112,514
2,319 50,438 1,837 39,955 3,848 83,694
10,244 221,522 8,135 175,928 16,849 364,367
797 54,545 560 38,325 1,241 84,931
833 25,615 591 18,173 1,306 40,160
1,330 66,666 1,041 52,180 2,190 109,774
29,918 1,166,802 23,706 924,534 48,161 1,878,279
5,970 447,750 4,722 354,150 9,428 707,100
2,769 78,224 2,224 62,828 4,677 132,125
3,028 128,312 2,397 101,573 4,902 207,722
612 20,120 417 13,709 658 21,632
2,721 73,467 2,184 58,968 4,460 120,420
10,590 567,889 8,379 449,324 16,915 907,067
7,163 319,649 5,651 252,176 11,387 508,145
13,032 857,669 10,362 681,949 20,894 1,375,086
2,697 224,188 2,105 174,978 4,354 361,926
1,399 145,146 1,155 119,831 2,325 241,219
1,049 36,191 855 29,498 1,408 48,576
3,614 246,204 2,943 200,492 5,959 405,957
6,882 156,566 5,415 123,191 11,203 254,868
4,235 24,087 3,195 18,172 6,964 39,608
995 40,857 836 34,328 1,669 68,533
14,320 1,036,429 11,338 820,624 23,057 1,668,756
18,315 805,860 14,480 637,120 29,230 1,286,120
1,022 44,904 754 33,129 1,553 68,235
1,031 73,781 798 57,107 1,577 112,854
1,997 23,964 1,671 20,052 3,317 39,804
1,830 29,852 1,487 24,257 2,897 47,257
1,763 67,545 1,391 53,293 2,890 110,723
18,281 995,172 14,540 791,521 29,452 1,603,293
892 35,290 757 29,949 1,437 56,851
432 20,871 341 16,475 590 28,504
1,285 62,001 995 48,009 2,090 100,843
3,889 135,872 3,110 108,656 6,366 222,412
1,863 56,822 1,490 45,445 2,988 91,134
2,872 263,327 2,274 208,497 4,596 421,396
2,333 118,108 1,836 92,948 3,784 191,565
</TABLE>
37
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Caliber Systems Inc -- $ -- 278 $ 11,607
Campbell Soup Co 380 17,623 3,434 159,252
Carolina Power & Light Co 156 5,265 1,118 37,733
Case Corp 100 6,706 573 38,427
Caterpillar Inc 314 18,232 2,800 162,575
Centex Corp 55 2,991 237 12,887
Central & South West Corp 131 2,710 1,609 33,286
Champion International Corp 38 2,249 661 39,123
Charming Shoppes Inc* 55 332 906 5,464
Chevron Corp 492 38,099 4,778 369,996
Chrysler Corp 590 20,724 5,065 177,908
Chubb Corp 108 7,223 1,250 83,594
CIGNA Corp 76 13,937 520 95,355
Cincinnati Milacron Inc 59 1,519 344 8,858
Cinergy Corp 120 3,968 1,161 38,386
Circuit City Stores Inc 43 1,532 742 26,434
Citicorp 377 48,115 3,423 436,860
Coastal Corp 108 6,237 759 43,832
Columbia Gas System Inc 39 2,574 427 28,182
Columbia/HCA Healthcare Corp 512 16,160 4,882 154,088
Comerica Inc 39 2,762 743 52,614
Conseco Inc 150 6,450 1,325 56,996
Consolidated Edison Co 235 7,197 1,744 53,410
Consolidated Natural Gas Co 38 2,244 711 41,993
Cooper Industries Inc 128 6,824 831 44,303
Cooper Tire & Rubber Co 21 528 615 15,452
Coors (Adolph) Co Class B 67 2,471 327 12,058
CoreStates Financial Corp 204 12,546 1,483 91,205
Costco Companies Inc* 206 7,429 1,527 55,067
Countrywide Credit
Industries Inc 1,100 37,056 800 26,950
Crane Co 78 3,442 376 16,591
Crown Cork & Seal Co 80 4,070 915 46,551
CSX Corp 168 9,608 1,621 92,701
Cummins Engine Co Inc 23 1,770 282 21,696
Cyprus Amax Minerals 36 909 660 16,665
Dana Corp 48 2,211 747 34,409
Darden Restaurants Inc 153 1,540 1,264 12,719
Data General Corp* 62 2,228 323 11,608
Deere & Co 228 12,768 1,842 103,152
Delta Air Lines Inc 38 3,287 533 46,105
Deluxe Corp 70 2,306 614 20,224
Digital Equipment Corp* 117 5,031 1,082 46,526
Dillards Inc Class A 123 4,920 801 32,040
Disney (Walt) Co 494 37,945 4,987 383,064
Dominion Resources Inc 170 6,120 1,366 49,176
</TABLE>
38
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
692 $ 28,891 568 $ 23,714 1,156 $ 48,263
8,560 396,970 6,842 317,298 13,724 636,451
2,771 93,521 2,174 73,373 4,522 152,618
1,318 88,388 1,057 70,885 2,194 147,135
6,932 402,489 5,538 321,550 11,084 643,565
516 28,058 431 23,436 711 38,661
4,006 82,874 3,125 64,648 6,352 131,407
1,735 102,690 1,374 81,324 2,867 169,691
1,882 11,351 1,545 9,318 2,302 13,884
12,074 934,980 9,592 742,781 19,386 1,501,203
12,652 444,402 10,063 353,463 20,231 710,614
3,194 213,599 2,511 167,923 5,102 341,196
1,357 248,840 1,119 205,197 2,147 393,706
761 19,596 538 13,854 854 21,991
2,929 96,840 2,334 77,168 4,773 157,807
1,785 63,591 1,404 50,018 2,918 103,954
8,570 1,093,746 6,722 857,895 13,766 1,756,886
1,970 113,768 1,535 88,646 3,233 186,706
1,011 66,726 851 56,166 1,638 108,108
12,278 387,537 9,798 309,249 19,653 620,298
1,972 139,642 1,545 109,405 3,185 225,538
3,384 145,517 2,720 116,960 5,554 238,803
4,296 131,565 3,399 104,094 7,093 217,223
1,729 102,119 1,373 81,093 2,866 169,273
2,215 118,087 1,762 93,937 3,550 189,259
1,451 36,456 1,171 29,421 2,286 57,436
701 25,849 529 19,507 1,102 40,636
3,785 232,778 3,068 188,682 6,105 375,458
3,849 138,805 3,082 111,145 6,370 229,718
1,900 64,006 1,500 50,531 3,100 104,431
870 38,389 629 27,733 1,427 62,967
2,401 122,151 1,863 94,780 3,741 190,323
4,024 230,123 3,227 184,544 6,543 374,178
707 54,395 596 45,855 1,198 92,171
1,762 44,491 1,377 34,769 2,791 70,473
1,898 87,427 1,519 69,969 3,097 142,656
2,925 29,433 2,256 22,701 4,518 45,462
752 27,025 637 22,892 1,350 48,516
4,687 262,472 3,702 207,312 7,517 420,952
1,368 118,332 1,122 97,053 2,262 195,663
1,538 50,658 1,217 40,085 2,473 81,454
2,775 119,325 2,277 97,911 4,566 196,338
2,063 82,520 1,697 67,880 3,410 136,400
12,488 959,235 9,885 759,292 20,027 1,538,324
3,417 123,012 2,716 97,776 5,526 198,936
</TABLE>
39
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Donnelley (R R) & Sons Co 153 $ 5,957 1,038 $ 40,417
Dow Chemical Co 232 20,532 1,691 149,654
Dow Jones & Co Inc 100 4,281 748 32,024
Dresser Industries Inc 107 4,467 1,325 55,319
DSC Communications Corp* 121 3,524 899 26,183
DTE Energy Co 132 3,911 1,068 31,640
Duke Power Co 236 11,431 2,637 127,730
Eastern Enterprises 37 1,320 191 6,816
Eastman Chemical Co 20 1,196 612 36,605
Eaton Corp 83 7,475 551 49,624
Echlin Inc 3 111 469 17,382
Echo Bay Mines Ltd 121 613 1,208 6,116
Edison International 310 7,479 3,066 73,967
EG & G Inc 23 489 334 7,098
Emerson Electric Co 336 18,375 3,290 179,922
Engelhard Corp 64 1,336 1,109 23,150
Enron Corp 215 8,308 2,294 88,462
Entergy Corp 229 5,682 1,735 43,050
Exxon Corp 1,952 119,438 18,261 1,117,345
Fed Home Loan Mortgage Corp 564 18,365 5,140 167,371
Federal Express Corp* 46 3,056 823 54,678
Federated Department Stores
Inc* 150 6,300 1,514 63,588
First Chicago NBD Corp 234 16,790 2,321 166,532
First Union Corp of New
England 426 20,475 4,215 202,605
Fleet Financial Group Inc 155 9,988 1,964 126,555
Fleetwood Enterprises Inc 30 934 313 9,742
Fleming Co Inc -- -- 275 5,191
Fluor Corp 19 1,066 613 34,405
FMC Corp* -- -- 322 26,746
Ford Motor Co 930 39,990 8,787 377,841
Fortune Brands Inc 153 5,259 1,243 42,728
FPL Group Inc 133 6,185 1,351 62,822
Frontier Corp 83 1,831 1,230 27,137
Fruit of the Loom Inc Class
A* 14 375 624 16,692
FW Woolworth Co* 81 1,812 990 22,151
General Dynamics Corp 61 4,857 476 37,902
General Motors Corp Class A 580 36,395 5,419 340,042
General Re Corp 97 18,806 617 119,621
General Signal Corp 33 1,431 420 18,218
Genuine Parts Co 152 4,693 1,368 42,237
Georgia-Pacific Corp 33 3,011 654 59,678
Giant Food Inc Class A 54 1,755 469 15,243
Golden West Financial 62 5,103 376 30,950
Goodrich (B F) Co 90 3,791 403 16,976
Goodyear Tire & Rubber Co 140 8,628 1,179 72,656
</TABLE>
40
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
2,681 $ 104,391 2,128 $ 82,859 4,382 $ 170,624
4,282 378,957 3,415 302,228 6,847 605,960
1,733 74,194 1,435 61,436 2,868 122,786
3,262 136,189 2,602 108,634 5,307 221,567
2,221 64,687 1,691 49,250 3,558 103,627
2,697 79,899 2,143 63,486 4,400 130,350
6,664 322,787 5,291 256,283 10,550 511,016
406 14,489 267 9,529 455 16,238
1,435 85,831 1,118 66,870 2,366 141,516
1,397 125,817 1,139 102,581 2,301 207,234
1,189 44,067 935 34,653 1,884 69,826
2,497 12,641 1,834 9,285 3,052 15,451
7,488 180,648 5,931 143,085 12,373 298,499
827 17,574 690 14,663 996 21,165
8,250 451,172 6,548 358,094 13,144 718,813
2,755 57,511 2,118 44,213 4,305 89,867
5,578 215,102 4,477 172,644 9,166 353,464
4,332 107,488 3,461 85,876 7,140 177,161
45,779 2,801,103 36,255 2,218,353 73,653 4,506,643
12,748 415,107 10,131 329,891 20,451 665,936
2,077 137,991 1,630 108,293 3,409 226,485
3,856 161,952 3,072 129,024 6,290 264,180
5,747 412,347 4,541 325,817 9,223 661,750
10,660 512,360 8,370 402,283 16,842 809,492
4,827 311,040 3,876 249,760 7,662 493,720
678 21,103 545 16,963 810 25,211
662 12,495 562 10,608 848 16,006
1,555 87,274 1,226 68,809 2,600 145,925
691 57,396 554 46,017 1,141 94,774
21,967 944,581 17,387 747,641 35,246 1,515,578
3,121 107,284 2,471 84,941 5,129 176,309
3,361 156,287 2,700 125,550 5,509 256,169
3,072 67,776 2,337 51,560 5,071 111,879
1,469 39,296 1,099 29,398 2,280 60,990
2,542 56,877 2,014 45,063 4,003 89,567
1,138 90,613 868 69,115 1,849 147,227
13,404 841,101 10,608 665,652 21,499 1,349,062
1,533 297,210 1,172 227,222 2,351 455,800
910 39,471 763 33,095 1,521 65,973
3,293 101,672 2,620 80,877 5,375 165,953
1,696 154,760 1,371 125,104 2,757 251,576
1,126 36,595 903 29,348 1,808 58,760
1,044 85,934 856 70,460 1,714 141,084
960 40,440 828 34,880 1,671 70,391
2,851 175,693 2,276 140,259 4,633 285,509
</TABLE>
41
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
GPU Inc 137 $ 4,607 921 $ 30,969
Grainger (W W) Inc 39 3,464 426 37,834
Great Atlantic & Pacific Tea
Co 67 1,679 277 6,942
Great Lakes Chemical Corp 75 3,488 413 19,205
Green Tree Financial Corp 150 6,591 1,042 45,783
Harcourt General Inc 86 4,090 552 26,255
Harland (John H) Co 53 1,050 236 4,676
Harnischfeger Industries Inc 8 321 384 15,408
Harrah's Entertainment Inc* 104 2,334 754 16,918
Harris Corp Inc -- -- 279 24,308
Hartford Financial Services
Group 131 10,447 832 66,352
Hasbro Inc 93 2,499 951 25,558
Helmerich & Payne Inc 43 3,037 150 10,594
Hewlett-Packard Co 830 50,889 7,463 457,575
HFS Inc* 93 5,179 1,161 64,653
Homestake Mining Co 116 1,624 1,125 15,750
Household International Inc 41 4,548 815 90,414
Houston Industries Inc 222 4,500 1,898 38,438
Humana Inc* 150 3,534 1,200 28,275
Huntington Bancshares Inc 1,446 46,814 1,556 50,376
Ikon Office Solutions Inc 188 4,888 972 25,272
Inco Ltd 129 3,491 1,199 32,448
Ingersoll-Rand Co 110 6,614 787 47,318
Inland Steel Industries Inc -- -- 411 8,657
International Business
Machines Corp 738 74,446 7,287 735,076
International Paper Co 209 11,025 2,188 115,417
ITT Corp* 131 8,228 1,032 64,823
ITT Industries Inc 131 4,127 832 26,208
JC Penney Co Inc 145 8,700 1,857 111,420
Jefferson-Pilot Corp 104 7,235 509 35,407
Johnson Controls Inc 92 4,387 664 31,665
K Mart Corp* 384 5,328 3,661 50,796
Kaufman & Broad Home Corp 57 1,140 292 5,840
Kerr--McGee Corp 41 2,547 327 20,315
KeyCorp 173 10,488 1,603 97,182
KingWorld Productions -- -- 274 10,892
Knight-Ridder Inc 40 2,025 661 33,463
Laidlaw Inc 281 4,110 2,439 35,670
Limited Inc 166 3,777 1,994 45,364
Lincoln National Corp 40 2,678 792 53,015
Liz Claiborne Inc 88 3,922 555 24,732
Lockheed Martin Corp 152 15,761 1,417 146,925
Loews Corp 50 5,097 835 85,118
Longs Drug Stores Corp 74 1,873 332 8,404
Louisiana Land & Exploration
Co -- -- 242 18,528
</TABLE>
42
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
2,220 $ 74,648 1,795 $ 60,357 3,582 $ 120,445
905 80,375 749 66,521 1,566 139,080
693 17,368 584 14,637 819 20,526
1,140 53,010 902 41,943 1,821 84,677
2,479 108,921 1,939 85,195 3,956 173,817
1,348 64,114 1,060 50,416 2,245 106,778
589 11,670 393 7,786 969 19,198
947 37,998 718 28,810 1,504 60,348
1,930 43,304 1,530 34,329 3,063 68,726
695 60,552 588 51,230 1,152 100,368
2,197 175,211 1,758 140,201 3,570 284,708
2,396 64,379 1,922 51,640 3,867 103,926
436 30,793 402 28,391 773 54,593
18,775 1,151,142 14,856 910,859 30,106 1,845,874
2,923 162,775 2,360 131,423 4,648 258,836
2,714 37,996 2,191 30,674 4,402 61,628
1,966 218,103 1,602 177,722 3,191 354,002
5,379 108,922 4,277 86,602 8,188 165,802
3,007 70,852 2,405 56,668 4,865 114,632
3,835 124,158 2,336 75,628 4,751 153,814
2,438 63,388 1,930 50,180 4,212 109,512
3,038 82,216 2,431 65,789 4,978 134,717
1,960 117,845 1,562 93,915 3,308 198,894
947 19,946 715 15,060 1,014 21,357
18,322 1,848,232 14,544 1,467,126 29,479 2,973,694
5,584 294,556 4,417 232,997 8,901 469,528
2,097 131,718 1,658 104,143 3,459 217,268
2,198 69,237 1,759 55,409 3,560 112,140
4,511 270,660 3,578 214,680 7,243 434,580
1,346 93,631 1,017 70,745 2,105 146,429
1,497 71,388 1,175 56,033 2,522 120,268
8,928 123,876 6,989 96,972 14,581 202,311
695 13,900 519 10,380 828 16,560
913 56,720 749 46,532 1,402 87,099
4,119 249,714 3,251 197,092 6,705 406,491
662 26,315 557 22,141 956 38,001
1,637 82,873 1,319 66,774 2,770 140,231
6,001 87,765 4,716 68,972 9,510 139,084
4,944 112,476 3,973 90,386 8,211 186,800
1,876 125,575 1,496 100,139 3,095 207,172
1,329 59,224 1,064 47,415 2,120 94,473
3,595 372,757 2,829 293,332 5,701 591,122
2,066 210,603 1,730 176,352 3,437 350,359
754 19,086 542 13,719 795 20,123
662 50,684 451 34,530 1,067 81,692
</TABLE>
43
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Louisiana-Pacific Corp 118 $ 2,611 796 $ 17,612
Lowe's Co Inc 150 5,184 1,316 45,484
Mallinckrodt Group Inc 84 3,056 553 20,115
Manor Care Inc 59 1,822 474 14,635
Masco Corp 149 6,621 1,214 53,947
May Department Stores Co 185 9,955 1,720 92,558
Maytag Corp 112 3,073 737 20,221
MBIA Inc 50 5,663 363 41,110
McDermott International Inc 44 1,419 432 13,932
McGraw-Hill Inc 72 4,415 697 42,735
MCI Communications Corp 565 16,103 5,103 145,436
Mead Corp 54 3,831 366 25,963
Mellon Bank Corp 226 10,876 1,866 89,801
Mercantile Stores Co Inc -- -- 324 20,230
Meredith Corp 100 3,000 412 12,360
Merrill Lynch & Co 216 13,284 2,434 149,691
MGIC Investment Corp -- -- 836 42,061
Micron Technology Inc 126 5,615 1,523 67,869
Mirage Resorts Inc* 1,290 34,588 -- --
Mobil Corp 596 43,359 5,788 421,077
Moore Corp Ltd 100 1,981 646 12,799
Morgan Stanley Dean Witter
Discover & Co 459 22,101 4,269 205,422
Morgan (J P) & Co Inc 139 14,908 1,408 151,008
Morton International Inc 132 4,389 1,015 33,749
Motorola Inc 501 36,761 4,349 319,108
NACCO Industries Inc Class A 16 1,380 43 3,709
Nalco Chemical Co 71 2,840 511 20,440
National City Corp 123 6,950 1,609 90,909
National Semiconductor* 60 2,055 1,046 35,826
National Service Industries
Inc 37 1,637 323 14,293
NationsBank Corp 618 36,694 5,343 317,241
Navistar International Corp* 31 769 550 13,647
New York Times Co Class A 112 5,292 659 31,138
Niagara Mohawk Power Corp* 125 1,117 1,135 10,144
NICOR Inc 42 1,525 329 11,947
Nordstrom Inc 19 1,112 612 35,802
Norfolk Southern Corp 92 9,016 947 92,806
Northern States Power Co 67 3,224 509 24,496
Northrop Grumman Corp 36 4,214 426 49,869
Norwest Corp 308 17,691 2,750 157,953
Novell Inc* 220 2,063 2,699 25,303
Nucor Corp 27 1,531 698 39,568
Occidental Petroleum Corp 286 6,703 2,420 56,719
Ohio Edison Co 143 3,146 1,130 24,860
ONEOK Inc 47 1,522 228 7,382
</TABLE>
44
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
2,011 $ 44,493 1,595 $ 35,289 3,248 $ 71,862
3,224 111,430 2,568 88,757 5,144 177,790
1,370 49,834 1,053 38,303 2,179 79,261
1,236 38,162 966 29,825 1,940 59,898
2,998 133,224 2,399 106,606 4,869 216,366
4,351 234,138 3,468 186,622 6,941 373,513
1,801 49,415 1,470 40,333 2,912 79,898
839 95,017 674 76,331 1,334 151,076
1,038 33,476 808 26,058 1,607 51,826
1,866 114,409 1,467 89,945 2,938 180,136
12,607 359,300 10,063 286,796 20,240 576,840
1,003 71,150 733 51,997 1,576 111,798
4,804 231,193 3,752 180,565 7,777 374,268
693 43,269 558 34,840 1,144 71,429
973 29,190 769 23,070 1,664 49,920
6,105 375,458 4,857 298,706 9,705 596,858
2,177 109,530 1,731 87,091 3,519 177,050
3,901 173,838 3,085 137,475 6,154 274,238
3,200 85,800 2,600 69,713 5,200 139,425
14,536 1,057,494 11,510 837,353 23,362 1,699,586
1,719 34,058 1,272 25,202 2,189 43,370
10,601 510,149 8,407 404,572 16,853 811,051
3,392 363,792 2,701 289,682 5,423 581,617
2,639 87,747 2,046 68,030 4,204 139,783
10,959 804,117 8,681 636,968 17,588 1,290,520
144 12,420 143 12,334 157 13,541
1,220 48,800 1,004 40,160 2,096 83,840
4,058 229,277 3,228 182,382 6,616 373,804
2,632 90,146 2,036 69,733 4,215 144,364
826 36,551 642 28,409 1,150 50,888
13,466 799,544 10,654 632,581 21,652 1,285,566
1,339 33,224 1,107 27,467 2,172 53,893
1,779 84,058 1,358 64,166 2,886 136,364
2,681 23,961 2,082 18,608 4,288 38,324
960 34,860 766 27,815 1,235 44,846
1,426 83,421 1,208 70,668 2,358 137,943
2,289 224,322 1,791 175,518 3,693 361,914
1,272 61,215 990 47,644 2,061 99,186
1,200 140,475 937 109,688 1,970 230,613
6,916 397,238 5,485 315,045 10,969 630,032
6,594 61,819 5,067 47,503 10,448 97,950
1,594 90,360 1,298 73,580 2,603 147,558
6,094 142,828 4,842 113,484 9,979 233,883
2,867 63,074 2,188 48,136 4,641 102,102
574 18,583 386 12,497 575 18,616
</TABLE>
45
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
P P & L Resources Inc 150 $ 3,291 1,200 $ 26,325
PACCAR Inc -- -- 554 26,246
Pacific Enterprises Co 48 1,581 668 22,002
PacifiCorp 194 4,026 2,168 44,986
Parker-Hannifin Corp 102 6,560 560 36,015
Peco Energy Co 213 5,072 1,694 40,338
Pennzoil 30 2,316 417 32,187
Peoples Energy Corp 61 2,299 245 9,233
PG & E Corporation 373 8,649 3,075 71,302
Pharmacia & Upjohn Inc 415 14,136 3,754 127,871
Phelps Dodge Corp 74 5,952 415 33,382
Phillips Petroleum Co 208 9,893 1,969 93,651
Placer Dome Inc 342 5,686 1,823 30,307
PNC Bank Corp 306 13,235 2,395 103,584
Polaroid Corp 32 1,690 318 16,794
Potlatch Corp -- -- 233 10,878
PPG Industries Inc 98 6,174 1,288 81,144
Progressive Corp 82 8,118 520 51,480
Providian Financial Corp 51 1,899 648 24,138
Public Service Ent Group Inc 179 4,441 1,737 43,099
Pulte Corp 48 1,758 128 4,688
Raytheon Co 174 9,570 1,773 97,515
Republic New York Corp -- -- 367 39,292
Reynolds Metals Co 56 3,959 575 40,645
Rockwell International Corp 211 12,660 1,590 95,400
Rohm & Haas Co 69 6,611 509 48,769
Rowan Cos Inc* 122 3,645 668 19,957
Russell Corp 73 2,081 282 8,037
Ryder System 36 1,285 554 19,771
Safeco Corp 70 3,439 951 46,718
Safety Kleen 76 1,534 466 9,407
Salomon Inc 119 7,125 770 46,104
Scientific Atlanta Inc 82 1,784 551 11,984
Seagate Technology Inc* 186 7,103 1,776 67,821
Seagrams Co Ltd 328 11,460 2,719 94,995
Sears Roebuck & Co 291 16,514 2,939 166,788
Service Corp International 198 6,336 1,811 57,952
Sherwin Williams Co 154 4,225 1,245 34,160
Sigma Aldrich Corp 124 4,046 755 24,632
Silicon Graphic* 177 4,856 1,274 34,955
Snap-On Inc 36 1,512 452 18,984
Sonat Inc 28 1,395 600 29,888
Southern Co 586 12,343 5,080 106,998
Southwest Airlines Inc 125 3,500 1,084 30,352
Springs Indust Inc 31 1,457 186 8,742
</TABLE>
46
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
3,116 $ 68,357 2,405 $ 52,760 4,975 $ 109,139
1,386 65,662 1,172 55,524 2,300 108,963
1,511 49,769 1,176 38,735 2,543 83,760
5,407 112,195 4,303 89,287 8,920 185,090
1,331 85,600 1,105 71,065 2,226 143,160
4,084 97,250 3,271 77,891 6,746 160,639
884 68,234 653 50,403 1,012 78,114
639 24,082 557 20,992 788 29,698
8,020 185,964 6,435 149,212 12,948 300,232
9,273 315,862 7,389 251,688 14,981 510,290
1,135 91,297 895 71,992 1,820 146,396
4,883 232,248 3,887 184,875 7,900 375,744
4,429 73,632 3,546 58,952 7,410 123,191
5,913 255,737 4,670 201,978 9,500 410,875
861 45,472 614 32,427 1,333 70,399
511 23,857 411 19,189 820 38,284
3,363 211,869 2,662 167,706 5,347 336,861
1,297 128,403 997 98,703 2,150 212,850
1,708 63,623 1,328 49,468 2,853 106,274
4,211 104,485 3,350 83,122 7,010 173,936
372 13,625 306 11,207 501 18,349
4,362 239,910 3,455 190,025 7,089 389,895
1,036 110,917 763 81,689 1,616 173,013
1,329 93,944 1,053 74,434 2,241 158,411
3,954 237,240 3,098 185,880 6,230 373,800
1,097 105,106 889 85,177 1,878 179,936
1,577 47,113 1,210 36,149 2,646 79,049
716 20,406 494 14,079 850 24,225
1,390 49,606 1,147 40,934 2,342 83,580
2,367 116,279 1,799 88,376 3,810 187,166
1,077 21,742 774 15,625 1,243 25,093
1,987 118,972 1,573 94,183 3,213 192,378
1,482 32,234 1,110 24,143 2,336 50,808
4,467 170,584 3,563 136,062 7,393 282,320
6,813 238,029 5,374 187,754 10,962 382,985
7,193 408,203 5,746 326,086 11,575 656,881
4,360 139,520 3,466 110,912 7,225 231,200
3,188 87,471 2,494 68,429 5,305 145,556
1,847 60,258 1,447 47,208 3,115 101,627
3,261 89,474 2,552 70,021 5,290 145,144
1,099 46,158 843 35,406 1,814 76,188
1,573 78,355 1,212 60,373 2,595 129,263
12,467 262,586 9,960 209,783 20,116 423,693
2,709 75,852 2,088 58,464 4,354 121,912
384 18,048 305 14,335 420 19,740
</TABLE>
47
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Sprint Corp 377 $ 17,719 3,140 $ 147,580
St Jude Medical Inc* 48 1,827 656 24,969
St Paul Cos 23 1,688 619 45,419
Stone Container Corp 83 1,432 807 13,921
Stride Rite Corp 63 748 375 4,453
Sun Co Inc 12 467 527 20,487
Suntrust Banks Inc 130 8,125 1,581 98,813
Supervalu Inc 76 2,983 418 16,407
Tandem Computers Inc* 125 4,250 830 28,220
Tandy Corp 61 4,049 375 24,891
Temple Inland Inc 47 3,032 461 29,735
Tenet Healthcare Corp* 211 5,750 2,254 61,422
Tenneco Inc 171 8,304 1,267 61,529
Texaco Inc 204 23,511 1,970 227,043
Texas Utilities Co 241 8,394 1,863 64,973
Textron Inc 60 3,739 1,199 74,713
The Pep Boys 57 1,511 472 12,508
Thermo Electron Corp* 133 5,353 1,072 43,148
Thomas & Betts Corp 66 3,696 430 24,080
Time Warner Inc 463 23,845 4,160 214,240
Times Mirror Co 48 2,433 719 36,444
Timken Co -- -- 473 17,708
Torchmark Corp 156 5,879 1,040 39,195
Toys "R" Us Inc Holding Co* 259 8,952 2,101 72,616
Transamerica Corp 74 7,294 515 50,760
Travelers Property Casualty 483 30,671 4,704 298,704
Tribune Co 136 6,724 914 45,186
TRW Inc 126 6,568 907 47,277
Unicom Corp 199 4,701 1,653 39,052
Union Camp Corp 72 4,271 514 30,487
Union Carbide Corp 140 7,184 918 47,105
Union Electric Co 104 3,868 753 28,002
Union Pacific Corp 157 10,195 1,834 119,095
Unisys Corp* 73 826 1,418 16,041
United Healthcare Corp 189 9,190 1,360 66,130
United States Surgical Corp 49 1,614 568 18,709
Unum Corp 166 6,848 999 41,209
USF & G Corp 74 1,623 856 18,779
USX-Marathon Group 202 6,578 2,098 68,316
USX-US Steel Group Inc 32 1,124 654 22,972
U.S. West Inc 344 12,320 3,539 126,740
U.S. West Media Group* 494 9,880 4,484 89,680
VF Corp 63 5,568 479 42,332
Viacom Inc* 272 8,058 2,560 75,840
Wachovia Corp 175 10,894 1,166 72,584
</TABLE>
48
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
7,898 $ 371,206 6,331 $ 297,557 12,622 $ 593,234
1,642 62,499 1,368 52,070 2,794 106,347
1,543 113,218 1,196 87,757 2,481 182,043
1,815 31,309 1,408 24,288 2,902 50,060
893 10,604 707 8,396 1,050 12,469
1,340 52,093 1,074 41,752 2,176 84,592
4,038 252,375 3,223 201,438 6,616 413,500
1,134 44,510 901 35,364 1,624 63,742
2,187 74,358 1,707 58,038 3,471 118,014
958 63,587 771 51,175 1,648 109,386
983 63,404 818 52,761 1,647 106,232
5,579 152,028 4,438 120,936 9,055 246,749
3,182 154,526 2,525 122,620 5,182 251,651
4,877 562,074 3,883 447,516 7,781 896,760
4,717 164,514 3,764 131,258 7,418 258,710
3,020 188,184 2,426 151,170 4,816 300,097
1,109 29,389 864 22,896 1,463 38,770
2,816 113,344 2,238 90,080 4,642 186,841
956 53,536 834 46,704 1,671 93,576
10,255 528,133 8,186 421,579 16,488 849,132
1,777 90,072 1,370 69,442 2,874 145,676
1,177 44,064 933 34,929 1,887 70,645
2,568 96,782 2,020 76,129 4,132 155,725
5,284 182,628 4,213 145,612 8,578 296,477
1,236 121,823 998 98,365 1,990 196,139
11,785 748,348 9,401 596,964 18,882 1,199,007
2,276 112,520 1,807 89,334 3,611 178,519
2,337 121,816 1,852 96,536 3,815 198,857
3,970 93,791 3,129 73,923 6,525 154,153
1,304 77,344 1,001 59,372 2,095 124,260
2,279 116,941 1,791 91,901 3,763 193,089
1,933 71,883 1,536 57,120 3,048 113,348
4,555 295,790 3,580 232,476 7,257 471,251
3,335 37,727 2,575 29,130 5,124 57,965
3,440 167,270 2,713 131,920 5,574 271,036
1,392 45,849 1,024 33,728 2,229 73,418
2,534 104,528 1,992 82,170 4,246 175,148
2,094 45,937 1,578 34,617 3,323 72,898
5,249 170,921 4,159 135,427 8,716 283,815
1,577 55,392 1,232 43,274 2,561 89,955
8,849 316,905 6,959 249,219 14,089 504,562
11,074 221,480 8,863 177,260 18,256 365,120
1,164 102,869 971 85,812 1,949 172,243
6,446 190,963 5,185 153,606 10,640 315,210
2,964 184,509 2,324 144,669 4,893 304,589
</TABLE>
49
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Washington Mutual Inc 196 $ 11,736 1,882 $ 112,685
Waste Management Inc 322 10,304 3,301 105,632
Wells Fargo & Co 52 13,221 638 162,212
Wendy's International Inc 105 2,527 1,014 24,399
Western Atlas Inc* 32 2,536 423 33,523
Westinghouse Electric 490 12,605 4,689 120,729
Westvaco Corp 102 3,455 788 26,694
Weyerhaeuser Co 160 9,240 1,434 82,814
Whirlpool Corp 80 4,580 574 32,862
Willamette Industries Inc 7 558 437 34,851
Williams Co Inc 87 4,051 1,182 55,037
Worldcom Inc* 706 21,136 6,628 198,426
Worthington Indust 33 613 757 14,052
------------ ------------
TOTAL LARGE CAP VALUE STOCKS
- VALUE $ 2,745,020 $ 24,756,325
- COST $ 2,155,292 $ 19,315,252
MEDIUM CAP GROWTH STOCKS
PERCENT OF NET ASSETS 2.88% 2.92%
Accustaff Inc* -- $ -- 800 $ 21,250
Adaptec Inc* 900 43,200 1,300 62,400
ADC Telecommunications* 1,072 39,798 1,460 54,203
Adtran Inc* 100 3,900 200 7,800
Advanced Fibre
Communication* -- -- 100 6,225
Agouron Pharmaceuticals Inc* -- -- 200 8,800
Airgas Inc* 400 7,275 700 12,731
Altera Corp* 720 38,340 1,020 54,315
America Online Inc* 600 38,700 1,000 64,500
American Power Conversion* 600 15,750 980 25,725
Analog Devices Inc* 1,301 43,107 1,827 60,508
APAC Teleservices Inc* 100 1,650 200 3,300
Apollo Group Inc* -- -- 200 7,138
Ascend Communications Inc* 1,150 48,803 1,800 76,388
Aspect Telecommunication
Corp* -- -- 600 13,200
Atmel Corp* 662 23,418 960 33,960
Bed Bath & Beyond Inc* 400 12,400 500 15,500
Betzdearborn Inc 296 19,296 340 22,164
Biogen Inc* 718 28,271 860 33,863
BMC Software Inc* 812 50,852 1,080 67,635
Boise Cascade Office
Products Corp* -- -- 100 2,106
Boston Properties Inc* -- -- 400 11,925
Cadence Design Systems Inc* 782 37,194 1,112 52,890
Cali Realty Corp -- -- 400 14,900
Callaway Golf Co 596 20,078 680 22,908
Cambridge Technology
Partners Inc* -- -- 400 12,900
</TABLE>
50
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
4,597 $ 275,245 3,666 $ 219,502 7,320 $ 438,285
8,301 265,632 6,639 212,448 13,354 427,328
1,687 428,920 1,262 320,864 2,639 670,966
2,501 60,180 1,969 47,379 3,950 95,047
1,025 81,231 792 62,766 1,611 127,672
11,710 301,545 9,305 239,604 18,872 485,948
1,900 64,363 1,533 51,930 3,118 105,622
3,599 207,842 2,898 167,360 5,786 334,142
1,385 79,291 1,044 59,769 2,235 127,954
975 77,756 789 62,923 1,703 135,814
2,937 136,754 2,339 108,910 4,748 221,079
16,406 491,155 13,035 390,235 26,278 786,683
1,838 34,118 1,420 26,359 2,943 54,629
------------ ------------ ------------
$ 61,843,530 $ 49,011,212 $ 99,446,677
$ 47,347,110 $ 37,197,796 $ 84,488,459
3.19% 3.78% 3.89%
1,600 $ 42,500 1,000 $ 26,563 1,700 $ 45,156
2,400 115,200 1,600 76,800 2,800 134,400
2,896 107,514 1,916 71,132 3,420 126,968
200 7,800 200 7,800 400 15,600
-- -- -- -- 100 6,225
-- -- -- -- 600 26,400
600 10,913 900 16,369 1,400 25,463
2,036 108,417 1,296 69,012 2,280 121,410
1,200 77,400 1,300 83,850 2,300 148,350
1,494 39,218 1,309 34,361 2,060 54,075
3,439 113,906 2,361 78,219 4,129 136,784
400 6,600 400 6,600 600 9,900
-- -- 200 7,138 400 14,275
2,700 114,581 2,510 106,518 4,160 176,540
-- -- -- -- 1,100 24,200
1,866 66,010 1,288 45,563 2,126 75,207
800 24,800 800 24,800 1,100 34,100
727 47,391 507 33,050 705 45,957
1,582 62,291 1,222 48,116 1,890 74,419
2,132 133,517 1,552 97,194 2,380 149,048
800 16,850 -- -- 200 4,213
-- -- -- -- 800 23,850
1,675 79,667 1,345 63,972 2,465 117,242
-- -- -- -- 800 29,800
1,158 39,010 956 32,205 1,516 51,070
-- -- 500 16,125 800 25,800
</TABLE>
51
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Catellus Development Corp* -- $ -- 700 $ 13,475
C-Cube Microsystems Inc* 100 3,000 300 9,000
CDW Computer Centers Inc* -- -- -- --
Centocor Inc* 546 24,502 740 33,208
Chesapeake Energy Corp -- -- 400 3,425
Chiron Corp* 896 20,048 892 19,959
CIENA Corporation* -- -- 500 23,875
Cintas Corp 310 21,623 300 20,925
Clear Channel Communications
Inc* 400 27,175 700 47,556
Coca-Cola Co 1,636 44,990 2,330 64,075
Coltec Industries* 600 13,425 700 15,663
Comair Holdings Inc -- -- 500 13,438
CompUSA Inc* -- -- 1,100 34,031
Compuware Corp* 600 37,050 800 49,400
Concord EFS Inc* -- -- 600 16,650
Consolidated Stores Corp* 719 26,908 968 36,240
ContiFinancial Corp* -- -- 100 3,288
Corporate Express Inc* 1,050 17,916 1,050 17,916
Corrections Corp Of America* 600 22,200 800 29,600
Covance Inc* 90 1,647 581 10,608
Credit Acceptance Corp* 200 2,825 200 2,825
Crompton & Knowles Corp 550 13,888 740 18,685
Cytec Industries Inc* 300 14,644 400 19,525
Dal Tile International Inc* -- -- -- --
Danaher Corp 200 10,713 380 20,354
Dentsply International Inc 200 11,250 200 11,250
Dial Corp 136 2,295 1,080 18,225
Diamond Offshore Driling Inc 400 21,850 400 21,850
Diebold Inc 565 26,202 735 34,086
Dole Food Co 446 17,422 510 19,922
Dollar General Corp 490 20,304 1,035 42,888
Doubletree Corp* -- -- 300 15,000
Dura Pharmaceuticals Inc* -- -- 500 17,813
Electronic Arts Inc* 500 15,906 500 15,906
Electronic Data Systems Corp 2,688 101,640 3,830 144,822
Electronics for Imaging Inc* 400 21,400 600 32,100
Ensco International Inc 500 31,750 600 38,100
Estee Lauder Co Class A 200 9,500 200 9,500
EVI Inc* -- -- 300 15,769
Excel Communication Inc* 400 8,750 400 8,750
Extended Stay America Inc* -- -- 600 8,025
Falcon Drilling Company Inc* -- -- 300 9,450
Fastenal Co 300 17,288 300 17,288
Federal Signal Corp 498 12,948 590 15,340
First USA Paymentech Inc* -- -- 100 3,038
</TABLE>
52
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
-- $ -- -- $ -- 1,900 $ 36,575
300 9,000 400 12,000 700 21,000
-- -- -- -- 100 7,288
1,381 61,972 1,166 52,324 1,720 77,185
1,000 8,563 500 4,281 1,000 8,563
2,424 54,237 1,300 29,088 2,052 45,914
-- -- -- -- 1,200 57,300
820 57,195 515 35,921 790 55,103
600 40,763 800 54,350 1,500 101,906
6,564 180,510 3,144 86,460 5,565 153,038
700 15,663 900 20,138 1,200 26,850
-- -- 600 16,125 1,000 26,875
-- -- 1,400 43,313 2,200 68,063
1,200 74,100 1,200 74,100 1,900 117,325
-- -- 900 24,975 1,500 41,625
1,718 64,318 1,375 51,477 2,187 81,876
-- -- -- -- 200 6,575
1,950 33,272 1,350 23,034 2,400 40,950
1,400 51,800 1,200 44,400 1,800 66,600
1,030 18,793 878 16,014 1,546 28,215
-- -- 200 2,825 500 7,063
885 22,346 570 14,393 1,830 46,208
900 43,931 600 29,288 800 39,050
-- -- -- -- 200 3,388
962 51,527 522 27,960 780 41,779
300 16,875 300 16,875 500 28,125
1,641 27,692 1,228 20,723 2,208 37,260
2,200 120,175 800 43,700 1,000 54,625
1,509 69,980 992 45,981 1,556 72,136
1,008 39,375 768 30,000 1,225 47,852
1,491 61,794 1,165 48,275 2,206 91,422
-- -- -- -- 600 30,000
700 24,938 700 24,938 1,100 39,188
1,000 31,813 600 19,088 1,200 38,175
7,491 283,253 5,076 191,936 8,800 332,750
1,000 53,500 800 42,800 1,300 69,550
1,100 69,850 900 57,150 1,400 88,900
800 38,000 300 14,250 500 23,750
-- -- -- -- 800 42,050
1,800 39,375 500 10,938 700 15,313
-- -- -- -- 1,300 17,388
-- -- -- -- 700 22,050
400 23,050 400 23,050 700 40,338
807 20,982 802 20,852 1,180 30,680
-- -- 200 6,075 400 12,150
</TABLE>
53
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Flowers Industries Inc 909 $ 16,817 720 $ 13,320
FORE Systems Inc* 400 8,175 500 10,219
Franklin Resources Inc 694 53,698 950 73,506
Galileo International Inc* -- -- 400 10,575
Gartner Group Inc Class A* 400 10,575 600 15,863
Gateway 2000 Inc* 400 15,650 400 15,650
General Nutrition Co Inc* 700 19,425 900 24,975
Georgia Gulf Corp 237 6,814 360 10,350
Getchell Gold Corp* 24 816 359 12,206
Global DirectMail Corp* 200 4,400 200 4,400
Global Marine Inc* 1,200 34,125 1,500 42,656
GTech Holdings Corp* 400 12,025 400 12,025
Gulfstream Aerospace Corp* -- -- 400 11,850
Harley-Davidson Inc 618 33,449 850 46,006
HBO & Co 700 50,138 1,000 71,625
Health Management Associates
Inc Class A* 950 28,084 1,050 31,041
HealthCare Compare Corp* 284 15,833 390 21,743
HON Industries Inc 153 8,951 170 9,945
HSN Inc* 461 15,221 365 12,029
Idexx Laboratories Inc* 400 7,525 500 9,406
Illinois Central Corp 411 13,794 690 23,158
Informix Corp* 1,390 12,597 1,720 15,588
International Game
Technology 997 19,940 1,400 28,000
Interneuron Pharmaceuticals
Corp* -- -- 400 7,400
Interstate Bakeries Corp -- -- 200 11,725
Intuit Inc* 400 10,450 400 10,450
Iomega Corp* 900 23,063 1,300 33,313
Jefferson Smurfit Corp* 700 13,606 800 15,550
Jones Apparel Group Inc* 400 20,075 400 20,075
Keane Inc* -- -- 400 23,500
K-III Communications Corp* -- -- 200 2,438
Kohls Corp* 286 19,716 620 42,741
La Quinta Inns Inc 800 16,800 750 15,750
Lancaster Colony Corp 138 7,150 260 13,471
Lear Corp* 400 18,325 500 22,906
Leggett & Platt Inc 658 28,294 900 38,700
Lexmark International Group
Class A* -- -- 200 7,000
LIN Television Corp* 200 9,488 200 9,488
Lincare Holdings Inc* -- -- 200 9,538
Linear Technology Corp 586 38,420 820 53,761
Lyondell PetroChemical 476 11,543 580 14,065
Manpower Inc 700 29,881 800 34,150
Maxim Intergrated Products
Inc* 500 34,563 700 48,388
McAfee Associates Inc* 350 19,819 450 25,481
Medpartners Inc* 1,210 25,864 2,089 44,652
</TABLE>
54
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
1,318 $ 24,383 936 $ 17,316 1,915 $ 35,428
600 12,263 700 14,306 1,200 24,525
2,044 158,155 1,170 90,490 2,048 158,426
-- -- -- -- -- --
1,000 26,438 800 21,150 1,200 31,725
700 27,388 600 23,475 900 35,213
2,100 58,275 1,400 38,850 2,100 58,275
745 21,419 465 13,369 640 18,400
222 7,548 458 15,572 646 21,964
300 6,600 200 4,400 400 8,800
3,615 102,802 2,100 59,719 3,600 102,375
500 15,031 600 18,038 900 27,056
-- -- 500 14,813 800 23,700
1,759 95,206 1,244 67,332 1,990 107,709
1,800 128,925 1,400 100,275 2,400 171,900
1,650 48,778 1,600 47,300 2,525 74,645
816 45,492 596 33,227 865 48,224
484 28,314 354 20,709 435 25,448
650 21,443 472 15,578 1,306 43,098
800 15,050 600 11,288 1,000 18,813
1,135 38,093 1,015 34,066 1,502 50,411
3,118 28,257 2,138 19,376 3,480 31,538
3,072 61,440 2,217 44,340 3,145 62,900
-- -- 600 11,100 900 16,650
600 35,175 300 17,588 500 29,313
800 20,900 500 13,063 1,000 26,125
2,200 56,375 1,900 48,688 2,800 71,750
1,400 27,213 900 17,494 1,500 29,156
600 30,113 600 30,113 900 45,169
-- -- -- -- 900 52,875
1,800 21,938 -- -- 400 4,875
1,004 69,213 908 62,595 1,358 93,617
1,500 31,500 1,100 23,100 1,700 35,700
470 24,352 340 17,616 528 27,357
500 22,906 800 36,650 1,500 68,719
1,474 63,382 1,384 59,512 2,030 87,290
1,000 35,000 300 10,500 700 24,500
300 14,231 200 9,488 300 14,231
-- -- -- -- 400 19,075
1,700 111,456 1,110 72,774 1,850 121,291
1,317 31,937 892 21,631 1,045 25,341
1,400 59,763 1,300 55,494 2,000 85,375
1,400 96,775 1,000 69,125 1,700 117,513
900 50,963 675 38,222 950 53,794
2,420 51,728 2,452 52,412 4,662 99,650
</TABLE>
55
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Microchip Technology Inc* 600 $ 24,263 600 $ 24,263
Micron Electronics Inc* -- -- 200 3,263
Millenium Chemicals Inc 611 12,821 836 17,546
Miller (Herman) Inc 338 17,492 520 26,910
Money Store Inc 400 11,400 400 11,400
NCR Corporation* 171 6,060 1,159 41,072
Neiman Marcus Group Inc* -- -- 200 6,175
Netscape Communications
Corp* 200 7,963 500 19,906
Newmont Gold Co 100 4,325 200 8,650
Nine West Group Inc* 200 8,450 400 16,900
Noble Affiliates Inc 338 15,675 630 29,216
Noble Drilling Corp* -- -- 1,400 39,813
Nordson Corp 214 12,359 160 9,240
Northwest Airlines Corp
Class A* 600 21,938 900 32,906
Omnicare Inc 600 17,363 900 26,044
Omnicom Group 588 39,837 920 62,330
Outback Steakhouse Inc* 400 9,650 400 9,650
Oxford Health Plans Inc* 500 36,563 800 58,500
Pacific Century Financial
Corp 374 18,443 460 22,684
Pairgain Technologies Inc* -- -- 600 15,450
Paychex Inc 685 23,461 1,027 35,175
Peoplesoft* 600 33,750 800 45,000
Petsmart Inc* 1,200 10,275 1,300 11,131
Phycor Inc* 600 17,663 600 17,663
Pittston Brink's Group 523 18,567 520 18,460
Planet Hollywood
International* -- -- 100 1,963
Pogo Producing Co 300 13,013 300 13,013
Precision Castparts Corp -- -- 200 12,925
Promus Hotel Corp* 477 18,514 561 21,774
Qualcom Inc* 500 23,125 600 27,750
Quintiles Transnational
Corp* 200 15,600 300 23,400
Readers Digest Association
Inc 700 20,694 1,000 29,563
Reading & Bates Corp* 700 25,419 800 29,050
Republic Industries Inc* 1,500 36,844 3,100 76,144
Reynolds & Reynolds Inc 746 15,013 920 18,515
Rhone-Poulenc Rorer Inc 400 38,525 500 48,156
Richfood Holdings Inc -- -- 500 11,250
Rio Tinto PLC ADR (UK) 2,400 154,200 5,100 327,675
Robert Half International
Inc* 400 23,350 500 29,188
Ross Stores Inc -- -- 600 17,625
Rouse Co 400 11,750 600 17,625
RP Scherer Corp* 200 11,263 300 16,894
Sabre Group Holdings Inc* -- -- 300 9,225
Safeway Inc* 1,099 55,980 1,527 77,794
Saks Holdings* 200 4,650 200 4,650
</TABLE>
56
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
600 $ 24,263 750 $ 30,328 1,300 $ 52,569
1,600 26,100 300 4,894 500 8,156
2,212 46,459 1,046 21,972 1,946 40,872
748 38,709 558 28,877 1,220 63,135
700 19,950 500 14,250 800 22,800
1,781 63,114 1,664 58,968 2,625 93,034
-- -- 400 12,350 500 15,438
1,500 59,719 800 31,850 1,745 69,470
200 8,650 200 8,650 300 12,975
300 12,675 400 16,900 700 29,575
873 40,485 858 39,790 1,320 61,215
2,100 59,719 1,800 51,188 3,100 88,156
293 16,921 208 12,012 385 22,234
1,500 54,844 1,300 47,531 1,900 69,469
800 23,150 1,200 34,725 1,900 54,981
1,720 116,530 1,210 81,978 2,058 139,430
500 12,063 600 14,475 900 21,713
1,400 102,375 1,100 80,438 1,700 124,313
757 37,330 677 33,385 1,035 51,038
1,100 28,325 700 18,025 1,100 28,325
1,804 61,787 1,440 49,320 2,312 79,186
1,400 78,750 1,200 67,500 1,900 106,875
2,200 18,838 1,600 13,700 3,000 25,688
1,050 30,909 750 22,078 1,450 42,684
657 23,324 743 26,377 1,104 39,192
1,600 31,400 200 3,925 300 5,888
600 26,025 400 17,350 700 30,363
300 19,388 213 13,765 600 38,775
1,174 45,566 745 28,915 1,255 48,710
1,000 46,250 900 41,625 1,400 64,750
300 23,400 400 31,200 700 54,600
1,800 53,213 1,500 44,344 2,200 65,038
1,200 43,575 1,100 39,944 1,700 61,731
1,600 39,300 2,600 63,863 7,100 174,394
2,112 42,504 1,352 27,209 2,200 44,275
900 86,681 700 67,419 1,100 105,944
-- -- 600 13,500 1,000 22,500
10,225 656,956 8,650 555,763 15,150 973,388
1,000 58,375 700 40,863 1,200 70,050
-- -- -- -- 1,300 38,188
500 14,688 900 26,438 1,600 47,000
400 22,525 400 22,525 600 33,788
2,200 67,650 300 9,225 600 18,450
2,689 136,956 1,990 101,350 3,526 179,580
1,200 27,900 300 6,975 600 13,950
</TABLE>
57
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Sealed Air Corp* 400 $ 20,750 400 $ 20,750
Security Dynamics Tech Inc* -- -- 300 11,794
Simon Debartolo Group Inc 300 9,506 700 22,181
SLM Holding Corp 500 67,750 700 94,850
Smith International Inc* 314 22,844 400 29,100
Solectron Corp* 800 33,500 1,000 41,875
Sonoco Products Co 688 22,403 977 31,814
Spieker Properties Inc -- -- 500 18,594
Staples Inc* 996 23,406 1,197 28,130
Star Banc Corp 700 31,631 1,000 45,188
Starbucks Corp* 700 28,700 800 32,800
Starwood Lodging Trust -- -- 500 23,094
Steel Dynamics Inc* -- -- -- --
Sterling Commerce Inc* 677 22,383 837 27,673
Stryker Corp 748 29,873 820 32,749
Sundstrand Corp 526 31,034 560 33,040
Sungard Data Sys Inc* 400 20,850 500 26,063
Sybron Corp* 500 19,969 600 23,963
Synopsys Inc* 400 13,850 500 17,313
Synovus Financial 1,425 37,317 1,875 49,102
T Rowe Price Assoc Inc 400 22,000 500 27,500
Tech Data Corp* -- -- 500 19,469
Teletech Holdings Inc* -- -- 100 1,638
Thermo Cardiosystems Inc* 150 3,759 250 6,266
Thermo Instrument Systems* 200 7,988 225 8,986
Thermolase Corp* -- -- 100 1,613
Tiffany & Co 326 14,752 400 18,100
Total System Services Inc 300 7,031 300 7,031
Transocean Offshore Inc 200 19,013 500 47,531
UAL Corp* 500 38,094 700 53,331
UCAR International Inc* 400 18,875 400 18,875
UICI* -- -- 400 12,000
Union Texas Petroleum
Holdings 600 13,988 700 16,319
United Meridian Corp* -- -- 400 15,675
USA Waste Services Inc* 800 33,600 1,730 72,660
USG Corp* 400 17,150 400 17,150
U.S. Office Products Co* -- -- 600 19,650
Valspar 400 12,325 400 12,325
Vastar Resources Inc 200 8,538 200 8,538
Viking Office Prods Inc* 800 16,900 1,000 21,125
Vornado Realty Trust 200 13,900 300 20,850
Watson Pharmaceutical Inc* 300 15,769 400 21,025
Western Digital* 700 33,688 1,000 48,125
Wisconsin Central Transport* 400 12,400 600 18,600
Xilinx Inc* 647 30,733 800 38,000
</TABLE>
58
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
606 $ 31,436 636 $ 32,993 1,000 $ 51,875
-- -- 400 15,725 700 27,519
1,600 50,700 1,100 34,856 1,700 53,869
1,400 189,700 900 121,950 1,500 203,250
597 43,432 627 45,614 900 65,475
2,000 83,750 1,600 67,000 2,400 100,500
2,100 68,381 1,622 52,816 2,355 76,685
-- -- -- -- 1,000 37,188
2,163 50,831 2,040 47,940 2,957 69,490
2,100 94,894 1,500 67,781 2,300 103,931
1,700 69,700 1,300 53,300 2,000 82,000
-- -- -- -- 1,000 46,188
-- -- -- -- 300 7,575
1,254 41,460 996 32,930 1,974 65,265
1,668 66,616 1,288 51,440 1,900 75,881
1,390 82,010 930 54,870 1,390 82,010
900 46,913 700 36,488 1,000 52,125
800 31,950 800 31,950 1,200 47,925
900 31,163 600 20,775 1,200 41,550
3,825 100,167 2,775 72,670 4,375 114,570
1,000 55,000 800 44,000 1,200 66,000
-- -- 700 27,256 1,100 42,831
-- -- -- -- 300 4,913
300 7,519 300 7,519 450 11,278
1,600 63,900 250 9,984 337 13,459
-- -- -- -- 300 4,838
480 21,720 560 25,340 800 36,200
2,200 51,563 400 9,375 600 14,063
400 38,025 700 66,544 1,000 95,063
1,200 91,425 900 68,569 1,500 114,281
800 37,750 600 28,313 900 42,469
-- -- -- -- 900 27,000
800 18,650 900 20,981 1,400 32,638
-- -- 500 19,594 800 31,350
2,400 100,800 1,900 79,800 3,968 166,635
500 21,438 600 25,725 900 38,588
-- -- -- -- 1,200 39,300
600 18,488 600 18,488 900 27,731
1,600 68,300 200 8,538 500 21,344
2,000 42,250 1,400 29,575 2,100 44,363
300 20,850 400 27,800 600 41,700
600 31,538 500 26,281 1,000 52,563
1,800 86,625 1,600 77,000 2,300 110,688
1,200 37,200 900 27,900 1,300 40,300
1,459 69,303 1,174 55,765 1,820 86,450
</TABLE>
59
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Zions BanCorp 400 $ 15,500 600 $ 23,250
------------ ------------
TOTAL MEDIUM CAP GROWTH
STOCKS
- VALUE $ 3,436,227 $ 5,431,986
- COST $ 2,366,094 $ 4,210,470
MEDIUM CAP VALUE STOCKS
PERCENT OF NET ASSETS 3.32% 3.10%
Advanta Corp Class B 300 $ 9,525 300 $ 9,525
AFLAC Corp 1,096 60,349 1,670 91,954
AG Edwards Inc 455 18,086 620 24,645
AGCO Corp 300 9,750 300 9,750
Albemarle Corp 313 7,688 460 11,299
Alex Brown Inc -- -- 200 16,938
Alexander & Baldwin Inc 504 13,608 590 15,930
Alleghany Corp* 2 490 102 24,480
Allegiance Corp 81 2,541 628 19,704
Allmerica Financial Corp 324 13,409 431 17,829
Alumax Inc* 489 20,263 480 19,890
AMBAC Inc 300 24,244 300 24,244
American Financial Group Inc 304 13,148 390 16,868
American National Insurance
Co 100 9,700 100 9,700
American Standard Co Inc* 500 23,500 500 23,500
American States Financial
Corp -- -- 100 4,681
American Water Works Co Inc 600 12,450 700 14,525
AmSouth Bancorp 700 29,444 850 35,753
Arco Chemical Co 100 4,375 100 4,375
Arrow Electronics Inc* 393 24,145 496 30,473
Associates First Capital
Corp 600 34,838 700 40,644
Autoliv Inc 45 1,758 1,199 46,848
Avnet Inc 330 22,832 450 31,134
AVX Corp 300 10,556 200 7,038
Barnes & Noble* 200 9,288 200 9,288
BB&T Corporation 1,000 51,750 1,600 82,800
Beacon Properties Corp -- -- 400 14,400
Bear Stearns Co Inc 999 39,539 1,154 45,665
Beckman Instruments Inc 294 13,836 350 16,472
Belo (A H) Corp 456 19,551 640 27,440
Bergen Brunswig Corp Class A 525 22,050 645 27,090
BG PLC ADR (UK) 3,200 138,800 6,700 290,613
BJ Services Co* -- -- 400 28,900
Borders Group Inc* -- -- 800 19,050
Boston Chicken Inc* 600 7,388 500 6,156
Bowater Inc 395 20,219 410 20,987
Cabot Corp 710 19,436 740 20,258
Calenergy Inc* 500 16,563 500 16,563
California Federal Bank* -- -- -- --
</TABLE>
60
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
1,200 $ 46,500 800 $ 31,000 1,600 $ 62,000
------------ ------------ ------------
$ 9,207,735 $ 7,170,842 $ 12,493,208
$ 6,260,913 $ 5,023,514 $ 9,881,006
3.50% 3.99% 4.16%
500 $ 15,875 400 $ 12,700 700 $ 22,225
3,217 177,136 2,137 117,669 3,727 205,218
1,017 40,426 977 38,836 1,525 60,619
500 16,250 600 19,500 800 26,000
1,112 27,314 732 17,980 986 24,219
-- -- -- -- 600 50,813
814 21,978 809 21,843 1,180 31,860
104 24,970 104 24,970 104 24,970
930 29,179 698 21,900 1,507 47,282
1,279 52,922 172 7,128 303 12,544
773 32,031 893 37,004 1,270 52,626
900 72,731 500 40,406 800 64,650
813 35,162 508 21,971 780 33,735
200 19,400 200 19,400 300 29,100
1,300 61,100 800 37,600 1,300 61,100
-- -- 200 9,363 300 14,044
800 16,600 1,000 20,750 1,700 35,275
1,800 75,713 1,350 56,784 2,050 86,228
200 8,750 200 8,750 300 13,125
999 61,376 710 43,621 1,075 66,045
1,600 92,900 1,100 63,869 1,700 98,706
870 33,980 634 24,749 2,711 105,894
1,014 70,156 659 45,595 1,015 70,225
1,300 45,744 300 10,556 600 21,113
300 13,931 200 9,288 400 18,575
2,300 119,025 1,900 98,325 3,580 185,265
-- -- -- -- 1,100 39,600
2,709 107,175 1,869 73,942 2,883 114,073
450 21,178 505 23,767 780 36,709
714 30,613 1,044 44,762 1,540 66,028
786 33,012 775 32,550 1,350 56,700
13,100 568,213 11,350 492,306 20,050 869,669
600 43,350 600 43,350 900 65,025
-- -- 1,000 23,813 1,700 40,481
700 8,619 700 8,619 1,100 13,544
652 33,374 607 31,071 975 49,908
1,772 48,509 1,232 33,726 1,790 49,001
900 29,813 900 29,813 1,400 46,375
-- -- -- -- 120 2,040
</TABLE>
61
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Capital One Financial Corp -- $ -- 100 $ 3,850
Carnival Corp Class A -- -- 1,200 52,575
CarrAmerica Realty Corp -- -- 400 11,925
Central Fidelity Banks Inc 525 20,541 745 29,148
Charter One Financial Inc 430 23,381 525 28,547
Cincinnati Financial Corp 430 34,938 646 52,488
Circus Circus Entertainment
Inc* 629 15,057 930 22,262
Clayton Homes Inc 1,026 17,254 984 16,539
CNA Financial Corp* 100 11,344 100 11,344
Comdisco Inc 624 16,965 668 18,148
Commerce Bancshares Inc 340 18,318 440 23,705
Compass Bancshares Inc 400 14,250 600 21,375
Comsat Corp 510 11,061 600 13,013
Consolidated Papers Inc 286 16,677 280 16,328
Continental Airlines Class B -- -- 500 18,313
Cooper Cameron Corp* -- -- 500 32,438
Cox Communications Inc Class
A 613 16,589 674 18,240
Cracker Barrel Old Country
Store Inc 649 19,957 710 21,833
Crescent Real Estate
Equities Co -- -- 1,000 31,625
Crestar Financial Corp 1,004 44,866 1,240 55,413
Cypress Semiconductor Corp* 800 14,200 1,040 18,460
Dean Foods Co 424 18,815 440 19,525
Deposit Guaranty Corp -- -- 400 12,825
Depuy Inc* -- -- 200 4,625
Dime Bancorp Inc 800 15,450 1,200 23,175
Donaldson Lufkin & Jenrette
Inc -- -- 100 5,938
DST Systems Inc* 200 7,238 300 10,856
Duke Realty Investments -- -- 800 16,750
Enron Oil & Gas Co 700 16,888 800 19,300
Enserch Exploration Inc* 138 1,242 1,213 10,919
Equitable Co Inc 600 26,100 900 39,150
Equitable of Iowa Co 300 19,538 300 19,538
Equity Office Properties* -- -- 300 8,756
Equity Residential
Properties Trust 400 19,475 600 29,213
Ethyl Corp 1,031 9,279 1,010 9,090
Everest Reinsurance Holdings
Inc 300 10,856 200 7,238
EW Scripps Co 300 11,794 300 11,794
Family Dollar Stores Inc 480 10,200 720 15,300
Fina Inc Class A -- -- 100 6,600
Finova Group Inc 200 16,913 300 25,369
First American Corp 600 25,350 700 29,575
First Brands Corp 486 12,120 480 11,970
First Commerce Corp 300 16,013 400 21,350
First Empire State Corp -- -- 100 36,550
First Hawaiian Inc 200 7,375 300 11,063
</TABLE>
62
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
900 $ 34,650 100 $ 3,850 200 $ 7,700
-- -- -- -- 2,900 127,056
-- -- -- -- 1,100 32,794
1,050 41,081 945 36,973 1,507 58,961
1,050 57,094 735 39,966 1,260 68,513
1,245 101,156 940 76,375 1,395 113,344
2,122 50,795 1,562 37,390 2,195 52,543
1,945 32,700 1,320 22,193 2,208 37,114
200 22,688 100 11,344 300 34,031
1,562 42,453 954 25,937 1,463 39,775
866 46,656 651 35,073 997 53,713
750 26,719 750 26,719 1,350 48,094
819 17,762 814 17,654 1,290 27,977
770 44,901 490 28,573 770 44,901
-- -- -- -- 1,000 36,625
800 51,900 800 51,900 1,100 71,363
1,294 35,019 927 25,087 1,649 44,626
1,411 43,388 971 29,858 1,525 46,894
-- -- -- -- 2,200 69,575
1,970 88,034 1,830 81,778 2,870 128,253
1,364 24,211 1,424 25,276 2,070 36,743
707 31,373 637 28,267 1,005 44,597
-- -- -- -- 900 28,856
1,700 39,313 300 6,938 400 9,250
2,400 46,350 1,900 36,694 2,800 54,075
900 53,438 200 11,875 300 17,813
400 14,475 300 10,856 500 18,094
-- -- -- -- 1,600 33,500
2,200 53,075 900 21,713 1,600 38,600
1,934 17,409 1,444 12,996 2,767 24,905
3,100 134,850 1,300 56,550 1,900 82,650
400 26,050 400 26,050 700 45,588
-- -- -- -- 700 20,431
400 19,475 700 34,081 1,400 68,163
2,029 18,261 1,308 11,772 2,530 22,770
400 14,475 300 10,856 500 18,094
900 35,381 300 11,794 600 23,588
1,285 27,306 940 19,975 1,642 34,887
400 26,400 100 6,600 100 6,600
600 50,738 500 42,281 700 59,194
1,400 59,150 1,000 42,250 1,600 67,600
694 17,307 704 17,556 1,060 26,434
800 42,700 500 26,688 900 48,038
100 36,550 100 36,550 100 36,550
300 11,063 400 14,750 600 22,125
</TABLE>
63
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
First Of America Bank Corp 821 $ 42,256 1,015 $ 52,247
First Security Corp 861 24,323 1,170 33,053
First Tennessee National
Corp 508 27,051 740 39,405
First Virginia Banks Inc 359 24,457 380 25,888
Firstar Corp 1,200 40,425 1,400 47,163
Firstmerit Corp 300 14,063 300 14,063
Fiserv Inc* 417 18,765 530 23,850
Food Lion Inc Class A 2,100 15,553 3,100 22,959
Food Lion Inc Class B 1,400 10,150 2,300 16,675
Forest Labs Inc Class A* 382 15,686 470 19,299
Foundation Health Systems* 792 25,186 1,027 32,659
Franchise Finance Corp -- -- 100 2,506
GATX Corp 223 13,951 270 16,892
Gaylord Entertainment Co
Class A 315 7,343 315 7,343
General Motors Corp Class H 800 50,850 1,100 69,919
Genzyme Corp--General
Division* 326 9,169 420 11,813
Golden State Bancorp* -- -- 600 17,325
Greenpoint Financial Corp 400 24,625 400 24,625
Hanna (M A) Co 580 15,008 550 14,231
Hannaford Brothers Co 236 8,024 360 12,240
Harsco Corp 538 24,244 620 27,939
Hawaiian Electric Industries
Inc 392 14,186 340 12,304
Health Care Property
Investors Inc 300 11,156 400 14,875
Health Care & Retirement
Corp* 350 12,753 400 14,575
Health & Retire Property
Trust 600 10,875 1,100 19,938
Hertz Corp Class A -- -- 200 6,913
Hibernia Corp Class A 1,000 15,188 1,500 22,781
Highwoods Properties Inc -- -- 400 13,000
Hillenbrand Industries Inc 300 13,181 500 21,969
Hormel Foods Corp 400 11,900 500 14,875
Host Marriott Corp* 1,300 25,350 1,900 37,050
HSB Group Inc 230 12,363 280 15,050
Hubbell Inc Class B 532 24,406 566 25,965
IBP Inc 732 16,790 1,020 23,396
Imation Corp* 576 15,588 516 13,964
IMC Global Inc 618 21,746 900 31,669
International Specialty
Products Inc* -- -- 200 2,863
IVAX Corp* 1,230 11,608 1,240 11,703
John Nuveen & Co Inc Class A -- -- 100 3,044
Johns Manville Corporation -- -- 400 4,950
Kansas City Southern
Industries 281 21,040 370 27,704
Kelly Services Inc Class A 406 13,601 420 14,070
Kimco Realty Corp 300 10,106 350 11,791
KLA Instruments Corp* 400 28,350 800 56,700
Komag Inc* 400 7,025 600 10,538
</TABLE>
64
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
2,113 $ 108,820 1,303 $ 67,105 2,287 $ 117,781
2,662 75,187 1,953 55,172 2,925 82,631
1,570 83,603 1,100 58,575 1,780 94,785
791 53,887 561 38,218 945 64,378
2,200 74,113 2,200 74,113 3,300 111,169
500 23,438 500 23,438 800 37,500
699 31,455 629 28,305 1,295 58,275
5,600 41,475 4,200 31,106 6,400 47,400
4,300 31,175 3,000 21,750 4,700 34,075
1,066 43,773 686 28,169 1,060 43,526
1,255 39,909 814 25,889 3,642 115,855
-- -- -- -- 200 5,013
302 18,894 317 19,832 610 38,163
420 9,791 515 12,006 750 17,484
2,100 133,481 1,500 95,344 2,600 165,263
734 20,644 544 15,300 700 19,688
-- -- -- -- 1,300 37,538
1,100 67,719 600 36,938 1,100 67,719
967 25,021 800 20,700 1,162 30,067
745 25,330 465 15,810 840 28,560
1,148 51,732 758 34,157 1,320 59,483
423 15,307 403 14,584 780 28,226
400 14,875 500 18,594 700 26,031
750 27,328 600 21,863 1,050 38,259
800 14,500 1,000 18,125 2,600 47,125
-- -- -- -- 500 17,281
2,900 44,044 2,200 33,413 3,300 50,119
-- -- -- -- 800 26,000
1,000 43,938 800 35,150 1,300 57,119
600 17,850 600 17,850 1,100 32,725
3,400 66,300 2,500 48,750 4,300 83,850
309 16,609 324 17,415 520 27,950
1,008 46,242 934 42,847 1,402 64,317
2,152 49,362 1,542 35,370 2,500 57,344
702 18,998 731 19,783 1,117 30,229
1,530 53,837 1,270 44,688 2,000 70,375
1,300 18,606 300 4,294 500 7,156
2,323 21,923 1,663 15,695 2,895 27,322
-- -- -- -- -- --
1,800 22,275 300 3,713 700 8,663
765 57,279 585 43,802 760 56,905
689 23,082 619 20,737 885 29,648
450 15,159 500 16,844 700 23,581
1,000 70,875 900 63,788 2,000 141,750
1,100 19,319 800 14,050 1,100 19,319
</TABLE>
65
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Lafarge Corp 300 $ 9,750 400 $ 13,000
Lam Research Corp* 300 16,950 400 22,600
Lehman Brothers Holdings 900 39,488 1,100 48,263
Leucadia National Corp 400 12,750 400 12,750
Liberty Media Group-Class A* 1,985 52,354 2,659 70,131
Litton Industries Inc* 301 15,012 390 19,451
Lone Star Steakhouse &
Saloon* 300 5,156 400 6,875
Loral Space &
Communications* 1,242 21,735 1,882 32,935
LTV Corp 900 11,700 1,300 16,900
Lubrizol Corp 529 23,177 660 28,916
MAPCO Inc 374 11,220 520 15,600
Mark IV Industries Inc 547 13,745 532 13,375
Marshall & Ilsley Corp 758 35,626 1,040 48,880
Martin Marietta Inc -- -- 100 3,494
McCormick & Co Inc 588 13,892 700 16,538
McKesson Corp 300 28,106 400 37,475
McLeod Inc Class A* -- -- 200 6,775
Meditrust Corp 400 15,975 600 23,963
MEMC Electronic Materials
Inc* 300 8,700 300 8,700
Mercantile Bancorp 636 43,844 970 66,869
Mercantile Bankshares 454 12,769 735 20,672
Mercury General Corp 100 8,750 100 8,750
Meyer (Fred) Inc* -- -- 200 10,400
MGM Grand Inc* 200 8,025 200 8,025
Molex Inc 453 17,724 397 15,533
Molex Inc Class A 550 20,075 643 23,470
Murphy Oil Corp 293 15,730 480 25,770
Mylan Laboratories 1,003 21,314 1,270 26,988
Nabisco Holdings Corp Class
A 200 8,300 200 8,300
Nabors Industries Inc* 900 30,994 900 30,994
New Plan Realty Trust 400 9,400 700 16,450
North Fork Bancorporation
Inc -- -- 800 19,950
Northern Trust Corp 934 49,619 1,320 70,125
Novellus System Inc* 200 22,925 200 22,925
Octel Communication* -- -- 600 18,225
Office Depot Inc* 1,538 28,357 1,550 28,578
Officemax Inc* 1,000 14,813 1,250 18,516
Ogden Corp 101 2,342 625 14,492
Ohio Casualty Corp 300 13,950 400 18,600
Old Kent Financial Corp 451 27,624 567 34,729
Old Republic International
Corp 750 26,953 850 30,547
Olin Corp 470 20,915 560 24,920
Olsten Corp 691 12,956 525 9,844
Outdoor Systems Inc* -- -- 600 15,863
PacifiCare Health Systems
Inc Class A* 112 7,445 70 4,653
</TABLE>
66
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
500 $ 16,250 300 $ 9,750 900 $ 29,250
500 28,250 500 28,250 800 45,200
2,400 105,300 1,500 65,813 2,600 114,075
400 12,750 600 19,125 1,000 31,875
5,583 147,252 3,434 90,572 5,971 157,485
808 40,299 503 25,087 879 43,840
700 12,031 500 8,594 900 15,469
2,912 50,960 2,974 52,045 4,566 79,905
1,900 24,700 1,700 22,100 2,700 35,100
1,517 66,464 942 41,271 1,600 70,100
936 28,080 776 23,280 1,200 36,000
870 21,870 762 19,153 1,174 29,488
2,203 103,541 1,583 74,401 2,420 113,740
-- -- -- -- 200 6,988
1,355 32,012 1,205 28,468 1,755 41,462
800 74,950 600 56,213 900 84,319
-- -- 200 6,775 400 13,550
1,100 43,931 800 31,950 1,300 51,919
400 11,600 400 11,600 500 14,500
1,469 101,269 1,064 73,350 2,240 154,420
1,219 34,284 1,062 29,869 1,720 48,375
200 17,500 200 17,500 300 26,250
-- -- -- -- 400 20,800
700 28,088 400 16,050 400 16,050
672 26,292 575 22,497 1,027 40,181
1,156 42,194 1,031 37,632 1,581 57,706
1,077 57,821 697 37,420 1,070 57,446
2,765 58,756 1,927 40,949 3,052 64,855
800 33,200 200 8,300 400 16,600
1,285 44,252 1,429 49,211 2,300 79,206
1,400 32,900 900 21,150 1,500 35,250
-- -- -- -- 1,700 42,394
2,656 141,100 1,676 89,038 2,930 155,656
400 45,850 200 22,925 400 45,850
730 22,174 840 25,515 1,200 36,450
2,442 45,024 1,967 36,267 3,380 62,319
2,700 39,994 1,950 28,884 3,050 45,178
884 20,498 606 14,052 1,144 26,527
700 32,550 500 23,250 800 37,200
909 55,676 793 48,571 1,560 95,550
1,800 64,688 1,250 44,922 2,000 71,875
1,078 47,971 858 38,181 1,260 56,070
1,117 20,944 988 18,525 1,316 24,675
-- -- -- -- 1,300 34,369
459 30,433 136 8,985 242 16,039
</TABLE>
67
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PacifiCare Health Systems
Inc Class B* 174 $ 11,897 195 $ 13,333
Paine Webber Group Inc 600 23,063 800 30,750
Payless Shoesource Inc* 317 20,328 411 26,355
Peoples Bank Bridgeport -- -- 200 5,613
Premark International Inc 461 13,715 706 21,004
Protective Life Corp 300 14,925 300 14,925
Provident Co Inc 297 19,342 266 17,323
Provident Financial Group -- -- 200 9,475
Public Storage Inc -- -- 700 19,644
Quantum Corp* 1,000 35,063 1,400 49,088
Questar Corp 427 17,080 440 17,600
Quorum Health Group Inc* 300 10,219 300 10,219
Rational Software Corp* -- -- 400 6,600
Rayonier Inc 356 17,377 350 17,084
Read-Rite Corp* 400 11,475 500 14,344
Regions Financial Corp 970 33,223 1,500 51,375
Reliance Group Holdings -- -- 700 8,575
Reliastar Financial Corp 300 22,425 500 37,375
RJR Holdings Group Inc 1,670 58,137 2,443 85,047
RPM Inc 778 15,803 887 18,017
SCI Sys Inc* 400 15,725 600 23,588
Seagull Energy Corp* 391 9,555 610 14,907
SEC Capital Pacific Trust 600 13,088 500 10,906
Sensormatic Electronics Corp 535 6,988 870 11,364
Shaw Inds 1,260 14,096 1,330 14,879
Signet Banking Corp 500 25,906 700 36,269
Southland Corp* 1,800 5,119 1,400 3,981
Southtrust Corp 871 38,977 1,080 48,330
St Joe Corp 100 8,563 100 8,563
Sterling Software* 300 10,294 400 13,725
Stewart Enterprises Inc 250 9,875 450 17,775
Storage Technology Corp* 459 23,380 635 32,345
Summit BanCorp 803 47,678 1,370 81,344
Sunbeam Corp 500 22,000 500 22,000
Sybase Inc* 700 13,038 700 13,038
Symbol Technologies Inc 390 14,430 315 11,655
Talbots Inc 200 5,288 200 5,288
TCF Financial Corp 400 21,325 400 21,325
Tele-Communications
International* 300 4,819 200 3,213
Teradyne Inc* 576 32,076 920 51,233
Terra Industries Inc 500 6,688 400 5,350
The PMI Group Inc 300 17,344 300 17,344
Tidewater Inc 565 29,663 650 34,125
TIG Holdings Inc 500 15,625 500 15,625
Tosco Corp 971 32,104 1,540 50,916
</TABLE>
68
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
526 $ 35,978 411 $ 28,102 595 $ 40,696
2,400 92,250 1,100 42,281 1,900 73,031
743 47,645 615 39,437 1,004 64,382
-- -- -- -- 500 14,031
1,133 33,707 796 23,681 1,450 43,138
600 29,850 500 24,875 700 34,825
806 52,491 501 32,628 633 41,224
-- -- -- -- 500 23,688
1,400 39,288 1,100 30,869 1,800 50,513
1,580 55,399 1,570 55,048 3,100 108,694
710 28,400 640 25,600 930 37,200
400 13,625 300 10,219 600 20,438
-- -- -- -- 1,000 16,500
462 22,551 526 25,675 819 39,977
600 17,213 500 14,344 1,100 31,556
2,838 97,202 1,928 66,034 3,380 115,765
-- -- -- -- 1,500 18,375
800 59,800 600 44,850 1,100 82,225
5,005 174,237 3,251 113,175 5,618 195,577
1,198 24,334 1,286 26,122 1,868 37,944
1,000 39,313 800 31,450 1,200 47,175
548 13,392 403 9,848 1,475 36,045
800 17,450 900 19,631 1,200 26,175
1,723 22,507 1,048 13,690 1,885 24,623
2,415 27,018 2,005 22,431 3,000 33,563
1,300 67,356 1,000 51,813 1,500 77,719
2,600 7,394 1,800 5,119 4,200 11,944
2,137 95,631 1,587 71,018 2,535 113,441
200 17,125 200 17,125 200 17,125
600 20,588 500 17,156 800 27,450
750 29,625 600 23,700 900 35,550
1,284 65,404 967 49,257 1,525 77,680
2,039 121,066 1,514 89,894 2,679 159,066
800 35,200 800 35,200 1,200 52,800
1,400 26,075 900 16,763 1,600 29,800
585 21,645 555 20,535 825 30,525
-- -- 200 5,288 400 10,575
800 42,650 500 26,656 1,100 58,644
1,500 24,094 200 3,213 600 9,638
1,790 99,681 1,300 72,394 2,050 114,159
700 9,363 500 6,688 1,100 14,713
300 17,344 400 23,125 600 34,688
925 48,563 985 51,713 1,465 76,913
900 28,125 700 21,875 1,000 31,250
1,467 48,503 1,877 62,058 3,435 113,570
</TABLE>
69
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Transatlantic Holdings Inc 226 $ 15,975 150 $ 10,603
Travelers Property Casualty 100 4,025 100 4,025
Trinity Industries 522 20,750 540 21,465
Tyson Food Inc 591 12,559 690 14,663
Ultramar Diamond Shamrock
Corp 610 19,904 755 24,632
Unifi Inc 568 21,797 600 23,025
Union Planters Corp 600 30,750 700 35,875
Unionbancal Corp 100 7,731 100 7,731
Unisource Worldwide Inc 94 1,704 865 15,678
United Asset Mgmt Corp 500 13,406 700 18,769
United Dominion Realty Trust -- -- 1,000 14,125
Unitrin Inc 300 18,000 300 18,000
Universal Corp 381 13,859 400 14,550
U.S. Filter Corp* -- -- 800 28,800
U.S. Industries Inc 395 15,010 505 19,190
Valero Energy Corp 480 15,990 470 15,657
Valero Energy Corp 480 15,990 470 15,657
Varian Associates Inc 277 15,806 390 22,254
Vencor Inc * 500 20,063 600 24,075
Viad Corp 136 2,474 1,080 19,643
Vishay Intertechnology Inc* 441 11,769 546 14,571
Vulcan Materials Co 300 26,363 300 26,363
Wallace Computer Services 90 2,790 100 3,100
Warnaco Group Inc 300 9,731 600 19,463
Washington Federal Inc 484 13,189 594 16,187
Washington Post Co 27 11,360 -- --
Weatherford Enterra Inc* 400 18,425 600 27,638
Weingarten 200 8,313 300 12,469
Weismarkets Inc 200 6,750 100 3,375
Wellpoint Health Networks
Inc* -- -- 100 5,438
Wesco Financial Corp -- -- -- --
West Teleservices* -- -- -- --
Western National Corp 400 11,150 400 11,150
Westfield America Inc -- -- -- --
Wheelabrator Technologies
Inc 700 10,981 1,000 15,688
Wilmington Trust Corp 392 19,747 410 20,654
Witco Corp 516 24,252 680 31,960
York International Corp 402 18,040 520 23,335
------------ ------------
TOTAL MEDIUM CAP VALUE
STOCKS
- VALUE $ 3,960,033 $ 5,748,679
-COST $ 2,718,892 $ 4,213,919
MEDIUM CAP UTILITY STOCKS
PERCENT OF NET ASSETS 0.70% 0.37%
360 Communications Co* 1,525 $ 28,022 1,519 $ 27,912
AES Corp* 1,568 58,016 1,280 47,360
</TABLE>
70
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
532 $ 37,606 390 $ 27,568 460 $ 32,516
900 36,225 100 4,025 300 12,075
705 28,024 635 25,241 1,105 43,924
3,711 78,859 873 18,551 1,545 32,831
1,544 50,363 1,237 40,344 1,925 62,813
1,182 45,359 982 37,684 1,440 55,260
1,000 51,250 1,100 56,375 1,700 87,125
500 38,656 200 15,463 300 23,194
1,174 21,279 1,092 19,793 1,674 30,341
1,400 37,538 1,000 26,813 1,700 45,581
-- -- -- -- 2,200 31,075
600 36,000 500 30,000 700 42,000
639 23,244 594 21,607 965 35,102
-- -- 900 32,400 1,700 61,200
950 36,100 760 28,880 1,235 46,930
764 25,451 684 22,786 1,360 45,305
764 25,451 684 22,786 1,360 45,305
735 41,941 490 27,961 765 43,653
1,500 60,188 980 39,323 1,374 55,132
1,641 29,846 1,428 25,972 2,208 40,158
882 23,538 871 23,245 1,249 33,333
800 70,300 500 43,938 800 70,300
1,100 34,100 210 6,510 300 9,300
1,000 32,438 700 22,706 1,200 38,925
726 19,784 805 21,936 1,252 34,117
80 33,660 33 13,885 125 52,594
1,057 48,688 700 32,244 1,200 55,275
400 16,625 400 16,625 600 24,938
600 20,250 200 6,750 200 6,750
-- -- -- -- 300 16,313
100 27,506 -- -- -- --
-- -- -- -- 200 2,650
600 16,725 400 11,150 800 22,300
-- -- -- -- 400 6,700
2,800 43,925 1,400 21,963 1,800 28,238
649 32,693 504 25,389 875 44,078
1,352 63,544 1,022 48,034 1,495 70,265
959 43,035 714 32,041 1,085 48,689
------------ ------------ ------------
$ 10,124,977 $ 7,572,654 $ 13,363,704
$ 6,883,063 $ 5,229,271 $ 10,005,187
0.44% 0.47% 0.29%
2,624 $ 48,216 2,128 $ 39,102 3,954 $ 72,655
2,296 84,952 1,596 59,052 1,500 55,500
</TABLE>
71
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
AGL Resources Inc 538 $ 10,188 440 $ 8,333
Allegheny Power Systems Inc 1,284 37,316 1,010 29,353
Brooklyn Union Gas Co 510 15,396 400 12,075
Century Telephone Enterprise 567 20,589 460 16,704
CMS Energy Corp 921 33,098 740 26,594
Delmarva Power & Light Co 640 11,480 510 9,148
El Paso Natural Gas Co 427 24,019 456 25,650
Florida Progress Corp 1,015 32,670 800 25,750
Idaho Power Co 402 12,713 320 10,120
Illinova Corp 813 18,699 650 14,950
IPALCO Enterprises Inc 607 19,765 480 15,630
Kansas City Power & Light Co 667 19,093 530 15,171
LCI International Inc* 300 7,200 300 7,200
LG & E Energy Corp 728 16,471 560 12,670
MCN Corp 616 18,904 500 15,344
Midamerican Energy Co 451 7,695 367 6,262
Montana Power Co 563 12,984 460 10,609
National Fuel Gas Co 400 17,775 320 14,220
Natural Gas Clearinghouse
Inc -- -- 100 1,638
Nevada Power Co 444 9,380 360 7,605
New Century Energies Inc* 1,072 43,296 863 34,823
New England Electric System 695 26,584 560 21,420
New York State Electric &
Gas Corp 772 18,818 610 14,869
NEXTEL Communications Class
A* 1,068 26,767 880 22,055
NIPSCO Industries Inc 702 28,650 560 22,855
Northeast Utilities 1,340 13,484 1,070 10,767
OGE Energy Corp 429 19,064 340 15,109
Paging Network Inc* 500 5,063 600 6,075
Pinnacle West Capital Corp 941 30,406 750 24,234
Potomac Electric Power 1,282 29,085 1,010 22,914
Puget Sound Power & Light 683 17,331 540 13,703
Scana Corp 1,026 24,752 820 19,783
Southern New England Telecom 687 26,278 550 21,038
Teco Energy 1,265 30,439 990 23,822
Telephone & Data System 566 22,357 450 17,775
Utilicorp United Inc 491 14,607 380 11,305
Wisconsin Energy Corp 1,148 29,346 920 23,518
------------ ------------
TOTAL MEDIUM CAP UTILITY
STOCKS
- VALUE $ 837,800 $ 686,363
-COST $ 698,940 $ 588,666
SMALL CAP GROWTH STOCKS
PERCENT OF NET ASSETS 0.18% 0.13%
Arrow International Inc -- $ -- 100 $ 2,963
Arterial Vascular
Engineering Co* -- -- 100 3,700
Broderbund Software Inc* 200 5,900 200 5,900
</TABLE>
72
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<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
798 $ 15,112 558 $ 10,567 520 $ 9,848
1,809 52,574 1,319 38,333 1,230 35,747
719 21,705 514 15,516 490 14,792
828 30,067 588 21,352 565 20,517
1,314 47,222 954 34,284 885 31,805
903 16,198 648 11,624 615 11,032
842 47,363 627 35,269 778 43,763
1,434 46,157 1,039 33,443 980 31,544
585 18,501 415 13,124 385 12,176
1,153 26,519 843 19,389 780 17,940
882 28,720 627 20,417 577 18,789
955 27,337 690 19,751 645 18,463
600 14,400 500 12,000 900 21,600
992 22,444 732 16,562 690 15,611
930 28,539 670 20,561 600 18,413
680 11,603 489 8,344 -- --
824 19,004 584 13,469 540 12,454
582 25,863 412 18,308 385 17,108
1,600 26,200 -- -- 3,200 52,400
652 13,774 472 9,971 450 9,506
1,535 61,982 1,123 45,337 1,029 41,556
1,008 38,556 718 27,464 690 26,393
1,087 26,496 787 19,183 740 18,038
1,588 39,799 1,101 27,594 1,025 25,689
1,015 41,425 740 30,201 675 27,548
1,916 19,280 1,386 13,947 1,290 12,981
612 27,196 442 19,641 415 18,442
1,500 15,188 800 8,100 1,500 15,188
1,334 43,105 974 31,472 905 29,243
1,806 40,974 1,316 29,857 1,230 27,906
971 24,639 706 17,915 655 16,621
1,446 34,885 1,036 24,994 980 23,643
975 37,294 710 27,158 680 26,010
1,789 43,048 1,284 30,896 1,220 29,356
827 32,667 587 23,187 565 22,318
675 20,081 494 14,697 472 14,042
1,645 42,050 1,175 30,036 1,105 28,247
------------ ------------ ------------
$ 1,261,135 $ 892,117 $ 944,884
$ 1,056,756 $ 754,835 $ 836,168
0.21% 0.19% 0.22%
-- $ -- -- $ -- 200 $ 5,925
-- -- -- -- -- --
200 5,900 200 5,900 500 14,750
</TABLE>
73
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Choice Hotels Inc* 59 $ 1,125 505 $ 9,627
Choicepoint Inc* 141 5,006 140 4,970
Citrix Systems Inc* -- -- 300 15,150
Collins & Aikman Corp* -- -- -- --
Commscope Inc* 50 862 346 5,969
Freeport-McMoRan 354 12,125 363 12,433
GenCorp Inc -- -- -- --
General Semiconductor Inc* 38 530 261 3,680
Host Marriott Services Corp* 240 3,435 240 3,435
Houghton Mifflin Co 304 10,545 240 8,325
ICN Pharmaceuticals Inc 500 18,063 504 18,207
International Dairy Queen
Class A* -- -- -- --
Kaydon Corp -- -- -- --
Land's End Inc* -- -- -- --
Lawter International Inc -- -- -- --
Macromedia Inc* 400 3,825 400 3,825
Magne Tek Inc* -- -- -- --
Mid Atlantic Medical
Services* 400 6,175 500 7,719
Monterey Resources Inc 37 755 356 7,343
Oakley Inc* 600 7,313 600 7,313
Objective Systems Integrator
Corp* -- -- 100 825
OEA Inc -- -- -- --
Omnipoint Corp* 200 4,188 300 6,281
Pixar Inc* -- -- 100 2,006
Presstek Inc* 200 8,000 400 16,000
Primadonna Resorts Inc* -- -- -- --
Quest Diagnostics Inc* 46 860 240 4,485
Readers Digest Association
Inc 200 5,550 300 8,325
Rollins Inc 388 8,391 210 4,541
Santa Fe Energy Resources
Inc* 83 918 809 8,950
Sbarro Inc -- -- -- --
Schweitzer-Mauduit
International 20 800 92 3,680
Shoneys Inc* 97 558 370 2,128
Sotheby's Inc 611 11,571 -- --
Southdown Inc 175 8,214 -- --
SPX Corp 22 1,279 46 2,674
Structural Dynamics
Research* 303 8,048 -- --
Superior Industries
International Inc 322 8,775 260 7,085
Symantec* 378 9,096 500 12,031
TCA Cable TV Inc 266 10,108 -- --
Teleport Communications Gp* 300 10,913 300 10,913
Tootsie Roll Inds Inc 212 10,362 212 10,370
Transtexas Gas Corp* -- -- -- --
Valhi Inc -- -- -- --
Vanguard Cellular Systems
Inc* 411 6,011 330 4,826
</TABLE>
74
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<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
1,105 $ 21,064 807 $ 15,383 1,217 $ 23,199
364 12,929 267 9,486 484 17,182
-- -- 400 20,200 600 30,300
-- -- -- -- 400 4,425
791 13,645 612 10,557 1,550 26,745
684 23,427 359 12,296 678 23,222
485 12,974 -- -- -- --
595 8,397 460 6,490 1,164 16,442
380 5,439 320 4,580 680 9,733
460 15,956 310 10,753 890 30,872
708 25,577 607 21,928 1,340 48,408
369 9,087 -- -- -- --
250 14,766 -- -- -- --
547 14,393 -- -- -- --
677 8,886 -- -- -- --
700 6,694 500 4,781 900 8,606
367 7,730 -- -- -- --
700 10,806 500 7,719 1,300 20,069
827 17,057 546 11,261 1,246 25,699
1,200 14,625 800 9,750 1,200 14,625
-- -- -- -- 200 1,650
308 11,454 223 8,293 -- --
400 8,375 400 8,375 600 12,563
-- -- -- -- 200 4,013
400 16,000 400 16,000 600 24,000
-- -- -- -- 400 7,600
515 9,624 389 7,269 825 15,417
300 8,325 300 8,325 600 16,650
645 13,948 400 8,650 675 14,597
1,875 20,742 1,239 13,706 2,826 31,263
319 8,533 219 5,858 -- --
214 8,560 176 7,040 351 14,040
751 4,318 596 3,427 1,304 7,498
848 16,059 623 11,798 -- --
253 11,875 178 8,355 -- --
226 13,136 83 4,824 248 14,415
434 11,528 319 8,473 -- --
454 12,372 331 9,020 510 13,898
636 15,304 761 18,312 1,500 36,094
371 14,098 276 10,488 -- --
2,600 94,575 400 14,550 3,300 120,038
318 15,555 212 10,370 537 26,228
-- -- -- -- 300 4,313
-- -- -- -- 300 2,625
595 8,702 427 6,245 390 5,704
</TABLE>
75
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Varco International Inc* 292 $ 11,607 -- $ --
Wausau Paper Mills Co 392 8,575 316 6,913
Williams-Sonoma Inc* -- -- -- --
Xylan Corp* 100 2,063 100 2,063
------------ ------------
TOTAL SMALL CAP GROWTH
STOCKS
- VALUE $ 211,546 $ 234,655
-COST $ 198,781 $ 238,202
SMALL CAP VALUE STOCKS
PERCENT OF NET ASSETS 0.56% 0.33%
A Schulman Inc 403 $ 8,816 420 $ 9,188
Acnielson Corp* 73 1,661 453 10,306
Aliant Communications Inc -- -- -- --
Alliance Semiconductor Corp* -- -- -- --
American Oncology Resources* -- -- 200 2,738
Anixter International Inc* 500 8,094 500 8,094
AnnTaylor Stores Inc* 247 4,230 195 3,339
Apria Healthcare Group Inc* 500 8,750 600 10,500
Argonaut Group Inc -- -- 100 3,250
Ascent Entertainment Group* 248 2,728 292 3,212
Atlantic Energy Inc 569 9,851 460 7,964
Bandag Inc -- -- 100 5,331
Bandag Inc Class A 100 5,313 100 5,313
Bassett Furniture Inds Inc 25 688 50 1,375
Best Buy Co Inc* -- -- 100 1,700
BJ's Wholesale Club Inc* 365 10,539 -- --
Bob Evans Farms Inc 468 8,307 360 6,390
Boyd Gaming Corp* -- -- 200 1,663
Breed Technologies Inc -- -- -- --
Brinker International Inc* 1,056 17,688 990 16,583
Brown Group Inc 31 517 180 3,004
Burlington Industries Inc* 729 8,794 477 5,754
Castle & Cooke Inc* 215 3,789 136 2,397
ChemFirst Inc 35 879 84 2,111
Chesapeake Corp 256 8,800 200 6,875
Chris-Craft Industries Inc* 116 5,710 262 12,836
Cirrus Logic Inc* 634 10,897 780 13,406
CNF Transportation Inc 62 2,240 361 13,041
Coleman Co Inc* -- -- 200 3,163
Compuserve Corp* -- -- 200 2,525
Deltic Timber Corp 141 4,167 166 4,899
Department 56 Inc* 200 5,463 200 5,463
DSP Communications Inc* -- -- 500 9,625
Earthgrains Co 28 1,148 146 5,986
Federal Mogul Corp 396 14,157 300 10,725
</TABLE>
76
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
524 $ 20,829 374 $ 14,867 -- $ --
572 12,513 407 8,903 371 8,116
-- -- -- -- 200 8,950
-- -- 100 2,063 200 4,125
------------ ------------ ------------
$ 605,777 $ 366,295 $ 713,999
$ 514,477 $ 328,903 $ 670,168
0.50% 0.52% 0.48%
686 $ 15,006 616 $ 13,475 1,185 $ 25,922
918 20,885 707 16,084 1,530 34,808
490 11,086 -- -- -- --
-- -- -- -- 250 3,313
-- -- 200 2,738 400 5,475
500 8,094 700 11,331 1,200 19,425
351 6,011 253 4,333 237 4,059
800 14,000 800 14,000 1,300 22,750
-- -- 200 6,500 300 9,750
399 4,389 397 4,367 678 7,458
830 14,369 590 10,214 550 9,522
200 10,663 100 5,331 300 15,994
200 10,625 200 10,625 400 21,250
200 5,500 120 3,300 206 5,665
-- -- 300 5,100 600 10,200
497 14,351 367 10,597 -- --
752 13,348 472 8,378 1,250 22,188
-- -- 300 2,494 700 5,819
-- -- -- -- 100 2,125
1,871 31,339 1,171 19,614 2,130 35,678
338 5,640 221 3,688 253 4,222
1,136 13,703 749 9,035 1,902 22,943
336 5,922 222 3,913 341 6,010
314 7,889 224 5,628 347 8,727
361 12,409 266 9,144 650 22,344
492 24,155 335 16,424 227 11,118
1,496 25,713 1,066 18,322 1,510 25,953
810 29,261 573 20,700 1,138 41,110
-- -- -- -- 200 3,163
400 5,050 -- -- 400 5,050
308 9,097 199 5,887 334 9,880
300 8,194 200 5,463 600 16,388
-- -- 600 11,550 1,000 19,250
334 13,694 268 10,988 612 25,092
553 19,770 398 14,229 380 13,585
</TABLE>
77
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Federal Realty Investment
Trust -- $ -- -- $ --
Ferro Corp 305 11,476 250 9,406
Fingerhut Co 505 10,226 400 8,100
Footstar Inc* 46 1,141 245 6,079
Fritz Companies Inc* 200 2,600 200 2,600
Fuller (H B) Co -- -- -- --
Geon Co -- -- -- --
Gibson Greetings Inc* -- -- -- --
Glatfelter (P H) Co 486 10,054 280 5,793
Glenayre Technologies Inc* 650 11,375 650 11,375
Grand Casinos Inc* 400 6,175 400 6,175
Granite Construction Inc -- -- -- --
Heilig Meyers Co 524 7,860 410 6,150
Homebase Inc* 365 2,874 -- --
Homestead Village Property
Inc* 75 1,263 88 1,474
Horizon/CMS Healthcare Corp* 600 12,338 400 8,225
Hunt (J B) Transport
Services -- -- -- --
IES Industries -- -- -- --
Indiana Energy Inc -- -- -- --
Information Resources Inc* -- -- -- --
Input/Output Inc* 500 10,500 500 10,500
Integrated Device Technology
Inc* 700 9,538 800 10,900
Intergraph Corp* 54 537 367 3,647
International Multifoods
Corp -- -- -- --
International Rectifier
Corp* 500 11,406 500 11,406
Jacobs Engineering Group* -- -- -- --
John Alden Financial Corp -- -- -- --
Kennametal Inc 300 14,044 300 14,044
Keystone International Inc 383 14,434 300 11,306
Laboratory Corp America
Holdings* 660 1,733 418 1,097
Lance Inc -- -- -- --
Lawson Products Inc -- -- -- --
Lee Enterprises Inc 498 12,761 -- --
Longview Fibre Co 554 11,599 540 11,306
Luby's Cafeteria Inc 45 886 219 4,312
Lukens Inc -- -- -- --
Mac Frugals Bargains Close-
Outs* -- -- -- --
Marvel Entertainment Group
Inc* -- -- 200 375
Mascotech Inc -- -- 300 6,281
MAXXAM Inc* -- -- -- --
Medaphis Corp* 800 7,300 900 8,213
Media General Inc Class A 280 10,290 220 8,085
Mentor Graphics Corp* 600 6,975 700 8,138
Mercury Financial Corp 1,800 2,813 1,800 2,813
Michaels Stores Inc* -- -- -- --
</TABLE>
78
<PAGE>
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<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
-- $ -- -- $ -- 400 $ 10,075
436 16,405 331 12,454 815 30,664
714 14,459 509 10,307 180 3,645
521 12,927 382 9,478 654 16,227
300 3,900 -- -- 400 5,200
225 12,417 -- -- -- --
-- -- -- -- 300 5,963
244 5,490 -- -- -- --
769 15,909 489 10,116 770 15,929
1,175 20,563 800 14,000 1,425 24,938
700 10,806 500 7,719 900 13,894
270 5,670 -- -- -- --
834 12,510 544 8,160 1,300 19,500
497 3,914 367 2,890 -- --
101 1,684 113 1,895 189 3,158
900 18,506 700 14,394 1,000 20,563
596 9,909 -- -- -- --
-- -- -- -- 300 9,188
352 8,954 -- -- -- --
403 7,254 -- -- -- --
1,000 21,000 700 14,700 1,100 23,100
1,700 23,163 800 10,900 2,100 28,613
861 8,556 586 5,823 992 9,858
274 7,364 -- -- -- --
1,000 22,813 700 15,969 1,100 25,094
373 11,936 -- -- -- --
-- -- -- -- 300 8,569
411 19,240 300 14,044 600 28,088
641 24,158 396 14,924 965 36,368
1,043 2,738 684 1,796 1,337 3,510
478 10,217 -- -- -- --
197 5,319 -- -- -- --
708 18,143 510 13,069 -- --
890 18,634 575 12,039 1,330 27,847
480 9,450 369 7,265 621 12,226
230 4,298 -- -- -- --
438 11,936 -- -- -- --
1,400 2,625 200 375 600 1,125
-- -- 400 8,375 800 16,750
128 7,040 -- -- -- --
1,100 10,038 1,200 10,950 2,000 18,250
410 15,068 290 10,658 570 20,948
852 9,905 1,000 11,625 1,600 18,600
2,600 4,063 2,400 3,750 4,400 6,875
-- -- -- -- 200 4,888
</TABLE>
79
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Micro Warehouse Inc* 300 $ 7,838 300 $ 7,838
Minnesota Power & Light Co 349 11,997 270 9,281
Mississippi Chemical
Corporation 11 239 28 608
Mobile Media Corp* 300 150 200 100
Mobile Telecommunications
Technologies Corp* -- -- 400 4,900
Modine Manufacturing Co 309 9,463 250 7,656
National Presto Industries -- -- -- --
NCH Corp -- -- -- --
Newport News Shipbuilding 64 1,244 293 5,673
Novacare Inc* -- -- -- --
Old National Bancorp 330 14,438 221 9,647
Oregon Steel Mills Inc -- -- -- --
Outboard Marine Corp 35 626 184 3,289
Overseas Shipholding Group 393 9,653 310 7,614
Parker Drilling* -- -- -- --
Pentair Inc -- -- -- --
Perrigo Co* 812 11,622 550 7,872
Phillips-Van Heusen -- -- -- --
Picturetel Corp* 400 5,000 400 5,000
Pioneer Natural Resources Co 376 15,017 297 11,861
Pittston Burlington Group 61 1,464 160 3,840
Policy Management System
Corp* 248 14,896 170 10,211
Public Service Co Of New
Mexico -- -- -- --
Quaker State Corp -- -- -- --
Roadway Express Inc 46 1,058 158 3,634
Rohr Industries Inc* -- -- -- --
Ruby Tuesday Inc* 192 5,184 100 2,700
Ruddick Corp -- -- -- --
Ryans Family Steak House* 119 1,101 516 4,773
Savannah Foods & Inds Inc -- -- -- --
Scholastic Corp* 200 6,850 200 6,850
Sequa Corp* 110 5,638 -- --
Sequent Computer* 340 9,584 -- --
Service Merchandise Co* 771 2,988 -- --
Shiva Corp* 300 4,425 300 4,425
Spelling Entertainment
Group* -- -- -- --
SPS Transaction Services
Corp* -- -- 100 2,131
Standard Register 301 10,290 -- --
Stanhome Inc 220 7,150 170 5,525
Stewart & Stevenson Services 364 8,873 380 9,263
Stratus Computer Inc* 261 14,486 210 11,655
Sunglass Hut Inc* 600 4,350 500 3,625
TCI Satellite Entertainment* 107 739 543 3,750
Tecumseh Products Co 241 13,617 190 10,735
</TABLE>
80
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- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
600 $ 15,675 400 $ 10,450 700 $ 18,288
480 16,500 350 12,031 335 11,516
106 2,299 74 1,605 116 2,516
400 200 300 150 700 350
-- -- -- -- -- --
465 14,241 335 10,259 500 15,313
116 4,611 81 3,220 -- --
124 8,432 89 6,052 -- --
616 11,927 465 9,013 846 16,399
975 14,686 710 10,694 -- --
441 19,294 331 14,470 772 33,764
299 8,054 199 5,361 -- --
424 7,579 224 4,004 348 6,221
550 13,509 405 9,948 375 9,211
844 11,130 619 8,163 -- --
576 20,520 406 14,464 -- --
1,252 17,919 842 12,051 1,680 24,045
410 5,894 290 4,169 -- --
700 8,750 500 6,250 800 10,000
534 21,327 386 15,416 462 18,451
328 7,872 221 5,304 402 9,648
303 18,199 258 15,496 440 26,428
650 11,863 470 8,578 -- --
419 6,495 299 4,635 -- --
270 6,210 243 5,589 359 8,257
287 7,767 207 5,602 -- --
321 8,667 199 5,373 387 10,449
714 10,710 524 7,860 -- --
1,012 9,361 679 6,281 1,039 9,611
410 7,175 290 5,075 -- --
200 6,850 200 6,850 400 13,700
137 7,021 102 5,228 -- --
471 13,276 341 9,612 -- --
1,516 5,875 1,111 4,305 -- --
600 8,850 400 5,900 600 8,850
-- -- -- -- 400 3,125
-- -- -- -- 200 4,263
432 14,769 312 10,667 -- --
299 9,718 214 6,955 210 6,825
495 12,066 365 8,897 845 20,597
366 20,313 271 15,041 750 41,625
1,000 7,250 700 5,075 1,300 9,425
1,150 7,942 883 6,098 1,866 12,887
345 19,493 249 14,069 431 24,352
</TABLE>
81
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Teleflex Inc 350 $ 11,091 -- $ --
The Fund American Co -- -- -- --
Thiokol Corp 216 17,199 -- --
Trimas Corp 200 5,725 200 5,725
Universal Foods Corp 279 10,829 320 12,420
Valujet Inc* 300 1,650 200 1,100
VLSI Technology* 500 16,500 400 13,200
Washington Gas Light 464 11,803 360 9,158
Watts Industries Inc 308 7,508 -- --
Wellman Inc 363 8,258 280 6,370
Wisconsin Power & Light
Holding Co 341 9,441 260 7,199
Xtra Corp 200 9,388 200 9,388
Yellow Corp* 49 1,537 223 6,997
Zenith Electronics Corp* 44 457 89 923
Zurich Reinsurance Centre
Inc 200 7,888 100 3,944
Zurn Inds Inc 22 653 46 1,366
------------ ------------
TOTAL SMALL CAP VALUE STOCKS
- VALUE $ 665,331 $ 618,802
- COST $ 736,106 $ 706,620
MICRO CAP STOCKS
PERCENT OF NET ASSETS 0.03% 0.02%
Bally Total Fitness Holdings
Corp* 26 $ 361 76 $ 1,055
Consolidated Freightways* 31 484 181 2,820
Crescent Operating Inc* -- -- 80 1,290
Crown Vantage Inc* 21 184 48 420
Dave & Buster's Inc* -- -- -- --
Echelon International
Corporation* 68 1,552 53 1,216
Edison Brothers Stores Inc* -- -- -- --
Ennis Business Forms -- -- -- --
Exabyte Corp* -- -- -- --
Genzyme Corp--Tissue Repair* 45 481 13 135
Golden Books Family
Entertainment Inc* 234 2,325 -- --
Halter Marine Group Inc* 182 7,200 188 7,438
Hancock Fabrics Inc -- -- -- --
Handleman Co* 59 350 132 784
Hartmarx Corp* 81 628 230 1,783
Highlands Insurance Group* 37 872 76 1,791
Intelligent Electronics* -- -- -- --
International Technology* -- -- -- --
JM Smucker Co 305 8,063 -- --
Laidlaw Environmental
Services* 131 606 353 1,633
Michael Foods Inc -- -- -- --
Mid American Waste Systems
Inc* -- -- -- --
Morrison Fresh Cooking Inc 96 456 50 238
</TABLE>
82
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<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
508 $ 16,097 388 $ 12,295 -- $ --
-- -- -- -- 100 10,550
295 23,489 210 16,721 -- --
-- -- 200 5,725 500 14,313
409 15,874 489 18,979 770 29,886
400 2,200 200 1,100 700 3,850
600 19,800 400 13,200 1,200 39,600
624 15,873 454 11,549 440 11,193
464 11,310 334 8,141 -- --
495 11,261 365 8,304 845 19,224
473 13,096 343 9,497 325 8,998
300 14,081 200 9,388 500 23,469
585 18,354 299 9,381 437 13,711
279 2,895 230 2,386 367 3,808
-- -- 100 3,944 300 11,831
224 6,650 180 5,344 241 7,155
------------ ------------ ------------
$ 1,430,413 $ 993,341 $ 1,539,593
$ 1,455,457 $ 1,039,589 $ 1,722,780
0.04% 0.03% 0.03%
185 $ 2,567 116 $ 1,610 223 $ 3,094
405 6,328 286 4,469 569 8,891
-- -- -- -- 200 3,225
104 910 81 709 132 1,155
69 2,225 -- -- -- --
96 2,191 69 1,589 65 1,491
347 130 -- -- -- --
247 2,686 -- -- -- --
340 3,995 -- -- -- --
71 763 52 562 54 581
313 3,110 233 2,315 -- --
246 9,732 221 8,743 420 16,616
342 4,275 -- -- -- --
467 2,773 307 1,823 521 3,093
389 3,015 354 2,744 618 4,790
172 4,053 136 3,205 216 5,090
540 2,228 -- -- -- --
137 1,002 -- -- -- --
436 11,527 331 8,751 -- --
769 3,557 623 2,881 822 3,802
229 4,952 -- -- -- --
372 163 -- -- -- --
160 760 99 470 193 917
</TABLE>
83
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Morrison Health Care Inc 128 $ 2,200 66 $ 1,134
NPC International Inc* -- -- -- --
OshKosh B'Gosh Class A 26 660 49 1,243
Physician Corp Of America* 400 2,725 300 2,044
Primex Technologies Inc 47 1,375 56 1,638
Sizzler International Inc* 254 937 -- --
Skyline Corp 20 579 44 1,273
Strattec Security Corp* 10 230 28 644
Talbert Medical Management
Holding* 20 1,251 25 1,564
Topp Inc (The)* 512 1,728 -- --
Western Wireless Corp* -- -- 100 1,506
Xoma Corp* 188 1,187 -- --
------------ ------------
TOTAL MICRO CAP STOCKS -
VALUE $ 36,434 $ 31,649
- COST $ 35,955 $ 25,067
INTERNATIONAL STOCKS (EXCEPT JAPAN)
PERCENT OF NET ASSETS 6.11% 8.31%
Aegon NV (Netherlands) 22 $ 1,634 324 $ 24,057
Alcatel Alsthom Compagnie
Generale d'electricite ADR
(France) 10,035 247,112 21,673 533,699
Allied Irish Banks PLC ADR
(Ireland) 1,560 78,390 2,870 144,218
Banco Bilbao Vizcaya ADR
(Spain) 2,250 60,188 4,800 128,400
Banco Central
Hispanoamericano SA ADR
(Spain) 1,100 20,213 2,000 36,750
Banco Santander SA ADR
(Spain) 2,100 58,275 4,200 116,550
Barclays PLC ADR (UK) 1,650 150,563 3,100 282,875
BAT Industries PLC (UK) 8,400 143,325 17,800 303,713
Benetton SpA ADR (Italy) 4,836 141,755 10,192 298,753
British Airways PLC ADR (UK) 1,300 134,306 2,800 289,275
British Petroleum Co PLC ADR
(UK) 2,129 180,146 4,657 394,105
British Steel PLC ADR (UK) 850 24,278 1,500 42,844
British Telecommunications
PLC ADR (UK) 3,200 207,000 6,700 433,406
Broken Hill Proprierty Co
Ltd ADR (Australia) 3,680 92,460 7,460 187,433
Coles Myer Ltd ADR
(Australia) 2,024 74,635 4,332 159,743
Courtaulds PLC ADR (UK) 17,200 92,450 36,100 194,038
Daimler-Benz
Aktiengesellschaft ADR
(Germany) 15,150 1,131,516 32,000 2,390,000
Elf Aquitaine ADR (France) 8,350 465,513 17,700 986,775
Energy Group PLC (UK) 1,068 43,188 1,987 80,349
Fiat SpA ADR (Italy) 7,480 116,875 15,730 245,781
Gallaher Group PLC ADR (UK)* 153 2,744 1,391 24,951
Glaxo Holdings PLC ADR (UK) 6,500 259,188 13,600 542,300
Grand Metropolitan PLC ADR
(UK) 6,791 247,019 14,414 524,327
Hanson PLC ADR (UK) 1,068 25,632 1,990 47,760
Hong Kong Telecommunications
Ltd ADR (Hong Kong) 19,353 410,042 42,803 906,889
</TABLE>
84
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
214 $ 3,678 132 $ 2,269 258 $ 4,434
374 4,254 284 3,231 -- --
228 5,786 85 2,157 222 5,633
600 4,088 500 3,406 1,100 7,494
108 3,153 86 2,510 126 3,686
434 1,600 319 1,176 -- --
222 6,424 78 2,257 133 3,849
72 1,656 49 1,127 -- --
33 2,065 30 1,877 52 3,253
722 2,437 527 1,779 -- --
-- -- -- -- 300 4,519
193 1,218 193 1,218 -- --
------------ ------------ ------------
$ 109,301 $ 62,878 $ 85,613
$ 108,655 $ 54,505 $ 74,893
10.65% 13.62% 14.20%
741 $ 55,019 576 $ 42,768 891 $ 66,157
42,698 1,051,439 36,113 889,293 63,401 1,561,247
5,542 278,486 4,462 224,216 8,145 409,286
9,600 256,800 8,100 216,675 14,300 382,525
3,950 72,581 3,300 60,638 5,700 104,738
8,400 233,100 7,050 195,638 12,150 337,163
6,975 636,469 5,650 515,563 9,750 889,688
35,750 609,984 30,250 516,141 53,200 907,725
20,410 598,268 17,236 505,230 30,420 891,686
5,725 591,464 4,800 495,900 8,450 872,991
9,100 770,121 7,528 637,085 13,221 1,118,829
3,150 89,972 2,600 74,263 4,450 127,103
13,500 873,281 11,350 734,203 20,050 1,296,984
16,490 414,311 13,920 349,740 24,480 615,060
8,775 323,578 7,432 274,055 13,040 480,850
72,800 391,300 61,600 331,100 108,300 582,113
64,300 4,802,406 54,300 4,055,531 95,500 7,132,656
35,450 1,976,338 30,000 1,672,500 52,750 2,940,813
3,871 156,534 3,056 123,577 5,156 208,496
31,570 493,281 26,675 416,797 46,910 732,969
3,016 54,100 2,266 40,646 3,545 63,588
27,400 1,092,575 23,200 925,100 40,750 1,624,906
28,667 1,042,779 23,679 861,322 41,717 1,517,474
3,872 92,925 3,257 78,168 5,657 135,768
81,936 1,736,019 69,241 1,467,044 119,553 2,533,029
</TABLE>
85
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Imperial Chemical Industries
PLC ADR (UK) 1,800 $ 118,125 3,900 $ 255,938
Imperial Tobacco Group ADR
(UK) 2,137 26,755 3,975 49,767
KLM Royal Dutch Airlines ADR
(Netherlands) 507 16,604 1,110 36,353
Lucasvarity PLC (UK) 37 1,172 448 14,196
Montedison SpA ADR (Italy) 2,646 16,041 6,292 38,145
National Australia Bank Ltd
ADR (Australia) 1,750 121,406 3,700 256,688
News Corporation Ltd ADR
(Australia) -- -- 290 4,386
Novo Nordisk A/S ADR
(Denmark) 3,650 186,150 7,600 387,600
Philips Electronics NV
(Netherlands) 1,700 121,763 3,500 250,688
Premier Farnell PLC (UK) 626 10,564 1,084 18,293
Ranger Oil Ltd (UK) -- -- -- --
Repsol SA (Spain) 1,650 64,969 3,400 133,875
Rhone Poulenc SA (France) 3,850 145,819 8,413 318,642
Royal Dutch Petroleum ADR
(Netherlands) 6,756 342,867 14,468 734,251
Smithkline Beecham PLC (UK) 3,500 151,594 7,600 329,175
Telecom Of New Zealand (New
Zealand) 1,600 62,800 3,200 125,600
Telefonica De Espana SA
(Spain) 2,150 167,163 4,500 349,875
The News Corp Limited
(Australia) 1,250 22,578 2,700 48,769
Total SA (France) 3,425 162,266 7,450 352,958
Unilever NV (Netherlands) 4,905 987,131 10,283 2,069,454
Vodafone Group PLC (UK) 1,650 84,047 3,500 178,281
Westpac Banking Ltd
(Australia) 1,650 47,644 3,400 98,175
WMC Limited Sponsored
(Australia) 1,450 29,725 3,100 63,550
------------ ------------
TOTAL INTERNATIONAL STOCKS
(EXCEPT JAPAN) -VALUE $ 7,295,630 $ 15,433,650
-COST $ 5,278,026 $ 11,123,123
JAPANESE STOCKS
PERCENT OF NET ASSETS 1.19% 2.79%
Canon Inc ADR 500 $ 69,563 1,850 $ 257,381
CSK Corp ADR 1,650 56,925 6,100 210,450
Fuji Photo Film Co Ltd ADR 1,200 45,900 4,900 187,425
Hitachi Ltd ADR 400 37,300 1,500 139,875
Honda Motor Co Ltd ADR 1,000 60,500 3,800 229,900
Ito Yokado Co Ltd ADR 550 119,213 1,900 411,825
Japan Air Lines Co ADR 8,700 70,688 31,600 256,750
Kirin Brewery Co ADR 1,400 115,150 5,150 423,588
Kubota Corp ADR -- -- 100 8,200
Kyocera Corp ADR 250 32,375 800 103,600
Makita Corp ADR 2,150 29,428 7,950 108,816
Matsushita Corp ADR 250 45,750 750 137,250
Mitsui & Co Ltd ADR 950 158,650 3,300 551,100
NEC Corp ADR 950 53,913 3,400 192,950
Nippon Telegraph & Telegraph
ADR 1,836 86,292 6,811 320,117
</TABLE>
86
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
7,775 $ 510,234 6,550 $ 429,844 11,500 $ 754,688
7,743 96,943 6,112 76,523 10,312 129,107
2,429 79,550 1,974 64,649 3,339 109,352
982 31,117 738 23,385 1,204 38,152
12,957 78,552 10,367 62,850 18,162 110,107
7,325 508,172 6,250 433,594 10,950 759,656
-- -- 580 8,773 1,015 15,352
15,275 779,025 12,900 657,900 22,650 1,155,150
7,075 506,747 6,050 433,331 10,550 755,644
2,106 35,539 1,726 29,126 3,137 52,937
1,508 14,609 1,103 10,685 -- --
6,825 268,734 5,850 230,344 10,050 395,719
16,520 625,695 13,950 528,356 24,541 929,490
28,152 1,428,714 23,200 1,177,400 42,712 2,167,634
15,200 658,350 12,800 554,400 22,600 978,863
6,550 257,088 5,600 219,800 9,800 384,650
9,000 699,750 7,600 590,900 13,350 1,037,963
5,500 99,344 4,550 82,184 7,650 138,178
14,670 694,998 12,447 589,682 21,813 1,033,404
20,021 4,029,226 16,615 3,343,769 30,632 6,164,690
7,000 356,563 5,900 300,531 10,400 529,750
6,900 199,238 5,800 167,475 10,100 291,638
6,275 128,638 5,250 107,625 9,300 190,650
------------ ------------ ------------
$ 30,779,956 $ 25,826,319 $ 45,656,618
$ 22,380,982 $ 19,590,590 $ 35,166,437
3.57% 4.19% 5.17%
3,775 $ 525,197 2,900 $ 403,463 6,050 $ 841,706
12,100 417,450 9,225 318,263 19,400 669,300
9,800 374,850 7,550 288,788 15,800 604,350
3,025 282,081 2,325 216,806 4,900 456,925
7,625 461,313 5,875 355,438 12,300 744,150
3,825 829,069 2,950 639,413 6,150 1,333,013
63,175 513,297 48,550 394,469 101,900 827,938
10,200 838,950 7,900 649,775 16,450 1,353,013
100 8,200 100 8,200 100 8,200
1,650 213,675 1,275 165,113 2,700 349,650
15,625 213,867 12,175 166,645 25,150 344,241
1,450 265,350 1,100 201,300 2,400 439,200
6,600 1,102,200 5,025 839,175 10,550 1,761,850
6,825 387,319 5,250 297,938 11,000 624,250
13,543 636,521 10,406 489,082 21,774 1,023,378
</TABLE>
87
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Nissan Motor Co Ltd ADR 2,300 $ 29,325 8,500 $ 108,375
Pioneer Electronics ADR 1,750 36,859 6,750 142,172
Sony Corp ADR 600 52,875 2,250 198,281
Tokio Marine & Fire
Insurance ADR 4,200 245,175 15,400 898,975
Toyota Motor Corp ADR 1,500 79,125 5,400 284,850
------------ ------------
TOTAL JAPANESE STOCKS -VALUE $ 1,425,006 $ 5,171,880
-COST $ 1,428,738 $ 5,081,826
WARRANTS
PERCENT OF NET ASSETS 0.00% 0.00%
Homestead Village Property
Corp
expires 10/29/1997* 1 $ 4 -- $ --
Morrison Knudsen Corp
expires
03/11/2003* 4 21 17 87
------------ ------------
TOTAL WARRANTS -VALUE $ 25 $ 87
-COST $ 22 $ 74
TOTAL COMMON STOCKS-VALUE $ 25,672,641 $ 85,678,455
-COST $ 19,573,402 $ 63,837,421
</TABLE>
88
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
16,950 $ 216,113 12,950 $ 165,113 27,250 $ 347,438
13,175 277,498 10,175 214,311 21,250 447,578
4,400 387,750 3,450 304,031 7,100 625,688
30,800 1,797,950 23,650 1,380,569 49,600 2,895,400
10,825 571,019 8,350 440,463 17,550 925,763
------------ ------------ ------------
$ 10,319,669 $ 7,938,355 $ 16,623,031
$ 10,141,906 $ 7,797,069 $ 16,434,348
0.00% 0.00% 0.00%
-- $ 3 1 $ 7 -- $ 4
27 138 25 128 42 215
------------ ------------ ------------
$ 141 $ 135 $ 219
$ 118 $ 114 $ 184
$187,514,708 $149,412,073 $300,598,260
$137,259,050 $107,903,758 $238,098,066
</TABLE>
89
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
LONG-TERM GOVERNMENT
BONDS
PERCENT OF NET ASSETS 1.14% 2.75%
U.S. Treasury Bonds, 6.00% --
13.88%, 11/15/07 -- 2/15/27 $ 1,200,000 $ 1,359,250 $ 4,550,000 $ 5,098,781
TOTAL LONG-TERM GOVERNMENT
BONDS -VALUE $ 1,359,250 $ 5,098,781
-COST $ 1,339,641 $ 4,973,319
INTERMEDIATE-TERM
GOVERNMENT BONDS
PERCENT OF NET ASSETS 68.77% 45.11%
U.S. Treasury Notes, 3.41% --
13.75%, 9/30/98 -- 5/15/07 $79,250,000 $ 82,096,541 $81,150,000 $ 83,763,708
TOTAL INTERMEDIATE-TERM
GOVERNMENT BONDS -VALUE $ 82,096,541 $ 83,763,708
-COST $ 81,694,375 $ 83,357,724
</TABLE>
90
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
8.65% 15.69% 5.73%
$21,850,000 $ 25,004,919 $ 25,640,000 $ 29,746,507 $16,350,000 $ 18,424,983
$ 25,004,919 $ 29,746,507 $ 18,424,983
$ 24,658,540 $ 29,156,182 $ 18,013,766
22.56% 2.87% --
$63,170,000 $ 65,199,547 $ 5,300,000 $ 5,450,233 $ -- $ --
$ 65,199,547 $ 5,450,233 $ --
$ 65,000,299 $ 5,432,156 $ --
</TABLE>
91
<PAGE>
LIFEPATH MASTER PORTFOLIOS AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal/ Principal/
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
U.S. TREASURY BILLS
PERCENT OF NET ASSETS 7.49% 5.37%
U.S. Treasury Bills,
2.59% -- 4.97%+,
9/04/97 -- 11/28/97** 8,993,000 $ 8,940,758 10,029,000 $ 9,969,132
TOTAL U.S. TREASURY
BILLS
-VALUE $ 8,940,758 $ 9,969,132
-COST $ 8,936,679 $ 9,964,771
CASH EQUIVALENTS
PERCENT OF NET ASSETS 9.51% 3.75%
Dreyfus Cash Management
Fund# 3,226,300 $ 3,226,300 1,962,363 $ 1,962,363
Janus Institutional
Money Market Fund# 4,120,000 4,120,000 3,000,000 3,000,000
Merrimac Premium Money
Market Fund# 4,000,000 4,000,000 2,000,000 2,000,000
------------ ------------
TOTAL CASH EQUIVALENTS
-VALUE $ 11,346,300 $ 6,962,363
-COST $ 11,346,300 $ 6,962,363
REPURCHASE AGREEMENTS
PERCENT OF NET ASSETS 4.19% 4.85%
Goldman Sachs Repurchase
Agreements#, dated
8/29/97, due 9/3/97,
with a maturity value
of $52,000,000 and an
effective yield of
5.67%, collateralized
by Federal National
Mortgage Association
obligations with rates
ranging from 6.07% to
7.01%, with maturity
dates ranging from
10/1/32 to 8/1/36 and
with an aggregate
market value of
53,040,000. $ 5,000,000 $ 5,000,000 $ 9,000,000 $ 9,000,000
------------ ------------
TOTAL INVESTMENTS IN
SECURITIES
(NOTES 1 AND 3) -VALUE $134,415,490 $200,472,439
-COST++ $127,890,397 $178,095,598
------------ ------------
TOTAL INVESTMENTS IN
SECURITIES 112.61% $134,415,490 107.98% $200,472,439
Other Assets and
Liabilities, Net (12.61) (15,049,441) (7.98) (14,820,834)
----------- ------------ ----------- ------------
TOTAL NET ASSETS 100.00% $119,366,049 100.00% $185,651,605
=========== ============ =========== ============
</TABLE>
- --------------------------------------------------------------------------------
* Non-income earning securities.
# Represents collateral received from securities lending transactions (see
Note 4 of the notes to the financial statements).
** These U.S. Treasury Bills are held in segregated accounts in connection with
the Fund's holdings of S&P 500 futures contracts. See Note 1.
+ Yield to maturity.
++ Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consist of:
<TABLE>
<S> <C> <C> <C> <C>
Gross Unrealized Appreciation $7,464,198 $23,997,148
Gross Unrealized Depreciation (939,105) (1,620,307)
---------- -----------
NET UNREALIZED APPRECIATION $6,525,093 $22,376,841
========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
92
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- ------------------------
Principal/ Principal/ Principal/
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
3.30% 2.30% 0.52%
9,607,000 $ 9,554,224 4,397,000 $ 4,362,138 1,686,000 $ 1,675,443
$ 9,554,224 $ 4,362,138 $ 1,675,443
$ 9,550,139 $ 4,359,892 $ 1,674,626
4.44% 2.80% 6.03%
1,850,117 $ 1,850,117 313,971 $ 313,971 394,414 $ 394,414
6,000,000 6,000,000 3,000,000 3,000,000 10,000,000 10,000,000
5,000,000 5,000,000 2,000,000 2,000,000 9,000,000 9,000,000
------------ ------------ ------------
$ 12,850,117 $ 5,313,971 $ 19,394,414
$ 12,850,117 $ 5,313,971 $ 19,394,414
4.85% 4.75% 4.67%
$14,000,000 $ 14,000,000 $ 9,000,000 $ 9,000,000 $15,000,000 $ 15,000,000
------------ ------------ ------------
$314,123,515 $203,284,922 $355,093,100
$263,318,145 $162,165,959 $292,180,872
------------ ------------ ------------
108.73% $314,123,515 107.21% $203,284,922 110.45% $355,093,100
(8.73) (25,221,460) (7.21) (13,667,649) (10.45) (33,605,911)
- ----------- ------------ ------------ ------------ ----------- ------------
100.00% $288,902,055 100.00% $189,617,273 100.00% $321,487,189
=========== ============ ============ ============ =========== ============
$ 53,881,729 $ 43,323,833 $ 67,105,680
(3,076,359) (2,204,870) (4,193,458)
------------ ------------ ------------
$ 50,805,370 $ 41,118,963 $ 62,912,228
============ ============ ============
</TABLE>
93
<PAGE>
STATEMENT OF ASSETS & LIABILITIES AUGUST 31, 1997 (UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
Life Path LifePath
2000 2010
Master Master
Portfolio Portfolio
- ----------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see cost below)
(Note 1) $ 134,415,490 $ 200,472,439
Cash 975 53
RECEIVABLES:
Dividends and interest 1,344,830 1,413,140
TOTAL ASSETS 135,761,295 201,885,632
LIABILITIES
Payables:
Collateral for securities loaned (Note 4) 16,346,300 15,962,363
Due to BGI (Note 4) 48,946 271,664
TOTAL LIABILITIES 16,395,246 16,234,027
TOTAL NET ASSETS $ 119,366,049 $ 185,651,605
INVESTMENTS AT COST $ 127,890,397 $ 178,095,598
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
94
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Master Master Master
Portfolio Portfolio Portfolio
- ---------------------------------------------------------
<S> <C> <C>
$ 314,123,515 $ 203,284,922 $ 355,093,100
492 832 751
1,769,753 739,903 945,895
315,893,760 204,025,657 356,039,746
26,850,117 14,313,971 34,394,414
141,588 94,413 158,143
26,991,705 14,408,384 34,552,557
$ 288,902,055 $ 189,617,273 $ 321,487,189
$ 263,318,145 $ 162,165,959 $ 292,180,872
- ------------------------------------------------------------------------------------------------
</TABLE>
95
<PAGE>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED AUGUST 31, 1997
(UNAUDITED)
- --------------------
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 282,768 $ 845,227
Interest+ 2,916,482 2,920,941
TOTAL INVESTMENT INCOME 3,199,250 3,766,168
EXPENSES (NOTE 2)
Advisory Fees 339,193 486,389
TOTAL EXPENSES 339,193 486,389
NET INVESTMENT INCOME 2,860,057 3,279,779
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain (loss) on sale of
investments 1,924,950 3,360,595
Net realized gain (loss) on sale of futures
contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 2,070,882 7,864,187
Net change in unrealized appreciation
(depreciation) in financial futures
contracts 0 0
NET GAIN (LOSS) ON INVESTMENTS 3,995,832 11,224,782
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 6,855,889 $14,504,561
- ------------------------------------------------------------------------------
+ Interest income includes security lending
income of: $ 15,464 $ 24,420
</TABLE>
The accompanying notes are an integral part of these financial statements.
96
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
Master Portfolio Master Portfolio Master Portfolio
- ---------------------------------------------------------
<S> <C> <C>
$ 1,781,306 $ 1,390,797 $ 2,583,579
2,996,920 1,278,759 876,769
4,778,226 2,669,556 3,460,348
740,368 477,215 794,878
740,368 477,215 794,878
4,037,858 2,192,341 2,665,470
4,285,729 1,988,078 13,043,902
0 0 14,539
19,072,996 15,423,729 19,852,580
0 0 (52,500)
23,358,725 17,411,807 32,858,521
$ 27,396,583 $ 19,604,148 $ 35,523,991
- -------------------------------------------------------------------------------------------
$ 45,183 $ 33,284 $ 59,325
</TABLE>
97
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------
<TABLE>
<CAPTION>
LifePath 2000 Master Portfolio
-----------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28, 1997
(Unaudited)
- ---------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 2,860,057 $ 5,769,457
Net realized gain (loss) on sale of
investments 1,924,950 2,894,777
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 2,070,882 (273,099)
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,855,889 8,391,135
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTERESTS
TRANSACTIONS (18,762,838) 6,204,037
INCREASE (DECREASE) IN NET ASSETS (11,906,949) 14,595,172
NET ASSETS:
Beginning net assets 131,272,998 116,677,826
ENDING NET ASSETS $ 119,366,049 $ 131,272,998
- ---------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
98
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2010 Master Portfolio LifePath 2020 Master Portfolio
- ------------------------------------- ----------------------------------------
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
August 31, 1997 February 28, 1997 August 31, 1997 February 28, 1997
(Unaudited) (Unaudited)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 3,279,779 $ 5,182,306 $ 4,037,858 $ 6,271,633
3,360,595 3,439,818 4,285,729 9,487,619
0 0 0 0
7,864,187 5,149,907 19,072,996 11,374,656
0 0 0 0
14,504,561 13,772,031 27,396,583 27,133,908
1,636,124 54,517,689 10,062,839 61,750,732
16,140,685 68,289,720 37,459,422 88,884,640
169,510,920 101,221,200 251,442,633 162,557,993
$ 185,651,605 $ 169,510,920 $ 288,902,055 $ 251,442,633
- ----------------------------------------------------------------------------------
</TABLE>
99
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------
<TABLE>
<CAPTION>
LifePath 2030 Master Portfolio
----------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28, 1997
(Unaudited)
- ---------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 2,192,341 $ 3,210,760
Net realized gain (loss) on investments 1,988,078 5,108,662
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 15,423,729 10,036,726
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 19,604,148 18,356,148
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTERESTS
TRANSACTIONS 11,208,292 32,210,346
NET INCREASE (DECREASE) IN NET ASSETS 30,812,440 50,566,494
NET ASSETS:
Beginning net assets 158,804,833 108,238,339
ENDING NET ASSETS $ 189,617,273 $ 158,804,833
- ---------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
100
<PAGE>
- --------------------
<TABLE>
<CAPTION>
LifePath 2040 Master Portfolio
- ------------------------------------------------------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28, 1997
(Unaudited)
- --------------------------------------
<S> <C>
$ 2,665,470 $ 3,953,444
13,043,902 14,697,190
14,539 35,620
19,852,580 17,501,172
(52,500) 92,625
35,523,991 36,280,051
27,878,470 45,783,771
63,402,461 82,063,822
258,084,728 176,020,906
$ 321,487,189 $ 258,084,728
- ------------------------------------------------------------------------------
</TABLE>
101
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Master Investment Portfolio ("MIP") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management investment
company. MIP was organized on October 20, 1993 as a Delaware business trust
pursuant to an Agreement and Declaration of Trust dated May 14, 1993 and had no
operations prior to May 26, 1994. MIP currently issues the following separate
portfolios (the "Master Portfolios"): the Asset Allocation, Bond Index,
LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040, S&P
500 Index and U.S. Treasury Allocation Master Portfolios. The financial state-
ments for the Asset Allocation, Bond Index, S&P 500 Index and U.S. Treasury Al-
location Master Portfolios are presented separately.
The following significant accounting policies are consistently followed by MIP
in the preparation of its financial statements, and such policies are in con-
formity with generally accepted accounting principles for investment companies.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Ac-
tual results could differ from those estimates.
INVESTMENT POLICY AND SECURITY VALUATION
Each Master Portfolio covered by this report follows an asset allocation strat-
egy 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 Portfolios are valued at the last reported
sale price on the primary securities exchange or national securities market on
which such securities are traded. Securities not listed on an exchange or na-
tional securities market, or securities in which there was no last reported
sales price, are valued at the most recent bid prices. Debt securities maturing
in 60 days or less are valued at amortized cost, which approximates market val-
ue. 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 market quotations are not readily available, are valued at
fair value as determined in good faith in accordance with policies approved by
MIP's Board of Trustees.
102
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on the date the securities are pur-
chased 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 de-
livered. Bond discounts and premiums are amortized as required by the Internal
Revenue Code of 1986, as amended (the "Code").
FEDERAL INCOME TAXES
Each Master Portfolio of MIP intends to qualify as a partnership for federal
income tax purposes. Each Master Portfolio therefore believes that it will not
be subject to any federal income tax on its income and net realized capital
gains (if any). However, each investor in a Master Portfolio will be taxed on
its allocable share of the partnership's income and capital gains for purposes
of determining its federal income tax liability. The determination of such
share will be made in accordance with the applicable sections of the Code.
It is intended that each Master Portfolio's assets, income and allocations will
be managed in such a way that a regulated investment company investing in a
Master Portfolio 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 Portfolio.
FUTURES CONTRACTS
The LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030, and LifePath
2040 Master Portfolios may purchase futures contracts to gain exposure to mar-
ket changes, as this may be more efficient or cost effective than actually buy-
ing 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, the LifePath 2000, LifePath 2010,
LifePath 2020, LifePath 2030, and LifePath 2040 Master Portfolios are 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 Portfolios agree to re-
ceive from or pay to the broker an amount of cash equal to the daily fluctua-
tion in the value of the contract. Such receipts or payments are known as
"variation margin" and are recorded by the Master Portfolios as unrealized
gains or losses. When the contract is closed, the Master Portfolios record a
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value
103
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
at the time it was closed. Pursuant to regulations and/or published positions
of the Securities and Exchange Commission, the Master Portfolios 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, 1997, the Master Portfolio had no
open futures contracts outstanding.
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities at a specified price and time ("repurchase agreements") are treated
as collateralized financing transactions and are recorded at their contracted
resale amounts. These repurchase agreements, if any, are detailed in each Mas-
ter Portfolio's Portfolio of Investments. The adviser to the Master Portfolios
may pool each Master Portfolio's cash and invest in repurchase agreements en-
tered into by the other Master Portfolios. Each Master Portfolio's prospectus
requires that the cash investments be fully collateralized based on values
that are marked to market daily. The collateral is generally held by an agent
bank under a tri-party agreement. It is the adviser's responsibility to value
collateral daily and to obtain additional collateral as necessary to maintain
the value at equal to or greater than 102% of market value. The repurchase
agreements entered into on August 31, 1997 by the Master Portfolios are col-
lateralized by U.S. Government Securities.
ORGANIZATION EXPENSES
Stephens Inc. ("Stephens"), the co-administrator, sponsor and placement agent
for the Master Portfolios, has paid all expenses in connection with the Master
Portfolios' organization and initial registration.
2. AGREEMENTS AND OTHER TRANSACTION WITH AFFILIATES
Pursuant to an Investment Advisory Contract with each Master Portfolio,
Barclays Global Fund Advisors ("BGFA") provides investment guidance and policy
direction in connection with the management of each Master Portfolio's assets.
BGFA is entitled to receive 0.55% of the average daily net assets of the
LifePath Master Portfolios as compensation for its advisory services to such
Master Portfolios. BGFA is an indirect subsidiary of Barclays Bank PLC.
Investors Bank & Trust Company ("IBT") serves as the custodian to each Master
Portfolio. IBT will not be entitled to receive fees for its custodial services
so long as it is
104
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
- --------------------
entitled to receive a separate fee from BGI for its services as Sub-
Administrator of the Stagecoach Trust Funds.
Certain officers and directors of MIP are also officers of Stephens.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities, for
each Master Portfolio for the six months ended August 31, 1997 are as follows:
<TABLE>
<CAPTION>
LifePath LifePath LifePath LifePath LifePath
Aggregate 2000 2010 2020 2030 2040
Purchases Master Master Master Master Master
and Sales of: Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
U.S. Government
Obligations
Purchases at cost $15,354,999 $29,887,410 $45,799,474 $13,913,684 $11,248,241
Sales proceeds 30,005,371 28,536,873 44,860,655 15,266,855 18,750,766
- ------------------------------------------------------------------------------
Other Securities:
Purchases at cost 1,535,695 5,295,787 17,720,008 17,054,815 75,256,106
Sales proceeds 6,863,822 8,091,021 9,271,168 4,980,483 34,182,894
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of August 31, 1997, certain Master Portfolios had loaned securities which
were collateralized by cash, money market mutual funds, and repurchase
agreements. Each Master Portfolio receives transaction fees for providing
services in connection with the securities lending program. The value of the
securities on loan and the value of the related collateral were as follows:
<TABLE>
<CAPTION>
Securities Collateral
- -------------------------------------------------------
<S> <C> <C>
LifePath 2000 Master Portfolio $16,025,784 $16,346,300
LifePath 2010 Master Portfolio $15,554,980 $15,962,363
LifePath 2020 Master Portfolio $26,100,436 $26,850,117
LifePath 2030 Master Portfolio $13,822,020 $14,313,971
LifePath 2040 Master Portfolio $33,089,158 $34,394,414
</TABLE>
As of August 31, 1997, these officers of Stephens collectively owned less than
1% of the Master Portfolios' outstanding shares of beneficial interests.
105
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
5. FINANCIAL HIGHLIGHTS
The portfolio turnover rates, excluding short-term
securities, for the Master Portfolios are as follows:
<TABLE>
<CAPTION>
LifePath LifePath LifePath LifePath LifePath
2000 2010 2020 2030 2040
Master Master Master Master Master
Portfolio Turnover Portfolio Portfolio Portfolio Portfolio Portfolio
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
For the Six Months Ended
August 31, 1997
(Unaudited) 14% 21% 21% 12% 18%
For the Year Ended
February 28, 1997 108% 73% 61% 42% 48%
For the Year Ended
February 29, 1996 84% 39% 49% 39% 29%
For the Year Ended
February 28, 1995 17% 24% 28% 40% 5%
</TABLE>
The average commission rates paid by the Master Portfolios
are as follows:
<TABLE>
<CAPTION>
For the
Six Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
-------------------------------------------------------------------
<S> <C> <C>
LifePath 2000 Master Portfolio $0.0300 $0.0401
LifePath 2010 Master Portfolio $0.0323 $0.0404
LifePath 2020 Master Portfolio $0.0300 $0.0451
LifePath 2030 Master Portfolio $0.0310 $0.0364
LifePath 2040 Master Portfolio $0.0307 $0.0351
</TABLE>
- --------------------
106
<PAGE>
Wells Fargo provides shareholder services, and/or 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.
The 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 accompa-
nied or preceded by a current prospectus. For an additional prospectus contain-
ing more complete information, including charges and expenses, call 1-800-222-
8222. Read the prospectus carefully before you invest or send money.
SC LP SAR (8/97) Bulk Rate U.S. Postage PAID Hudson, MA
Permit No. 19
STAGECOACH FUNDS(R)
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
LOGO
<PAGE>
LOGO
STAGECOACH LIFEPATH(R) FUNDS
INSTITUTIONAL CLASS
---------------------------------
SEMI-ANNUAL REPORT
---------------------------------
LIFEPATH 2000(R)
LIFEPATH 2010(R)
LIFEPATH 2020(R)
LIFEPATH 2030(R)
LIFEPATH 2040(R)
AUGUST 31, 1997
ADVISED BY BARCLAYS GLOBAL FUND ADVISORS
SPONSORED AND DISTRIBUTED BY STEPHENS INC.,
MEMBER NYSE/SIPC
NOT FDIC INSURED
LIFEPATH(TM) FUNDS SEMI-ANNUAL REPORT
<PAGE>
- --------------------
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders...................................................... 1
Investment Adviser Discussion............................................... 3
STAGECOACH TRUST
Statement of Assets and Liabilities......................................... 8
Statement of Operations..................................................... 10
Statements of Changes in Net Assets......................................... 12
Financial Highlights........................................................ 16
Notes to the Financial Statements........................................... 21
MASTER INVESTMENT PORTFOLIO
PORTFOLIOS OF INVESTMENTS
LifePath Master Portfolios.................................................. 28
MASTER INVESTMENT PORTFOLIO
Statement of Assets and Liabilities......................................... 108
Statement of Operations..................................................... 110
Statements of Changes in Net Assets......................................... 112
Notes to the Financial Statements........................................... 116
</TABLE>
STAGECOACH FUNDS:
---------------------------------------------------
. are NOT FDIC insured
. are NOT obligations of Wells
Fargo Bank or Barclays Global
Investors, N.A. ("BGI")
. are NOT guaranteed by the Bank
or BGI
. involve investment risk,
including possible loss of
principal
i
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE>
TO OUR SHAREHOLDERS:
We are pleased to present you with the 1997 LifePath Funds Semi-Annual Re-
port.
The recently completed reporting period for the six months ended August 31,
1997 saw market volatility and the long-expected increase in the federal funds
target rate. After months of debate on the rate of economic growth and the
potential for increased rates of inflation, the Federal Reserve acted in March
to raise rates by 0.25%. The bond market rallied after absorbing the news and
after investors felt that further Federal Reserve Action was unlikely in the
immediately following months.
The equity markets once again showed strength, also volatility. For example,
the equity market, as measured by the Standard & Poor's 500 Index, fell 7.20%
in March from its February high, yet the Index still enjoyed a total return of
13.74% for the period covered by this report.
Market volatility underscores the need for a disciplined, value-oriented
strategy to achieve long-range goals. The LifePath Funds are built on such a
strategy.
Each Fund is designed with a long-term, "strategic" asset allocation. For ex-
ample, shareholders in the LifePath 2000 Fund are assumed to require greater
price stability than those in the later dated Funds. Therefore, the strategic
asset allocation for the Fund is tipped towards less volatile investments. As a
Fund's time-horizon approaches, the strategic asset allocation is adjusted ac-
cordingly by gradually shifting towards a more stable, lower-risk profile.
But the economy does not offer a stagnant set of risk and reward
relationships. As this year has shown, risk and reward ratios can change
frequently. That is where each Fund's "tactical" asset allocation plays an
important role. Tactical asset allocation attempts to recognize short-term
values in the markets and react accordingly. Tactical asset allocation can only
succeed with reliable information. The Funds' investment advisors examine a
wide-range of quantitative and consensus-based information to determine which
asset classes are under or over-valued, which are offering greater-than-usual
potential rewards or greater-than-average risks.
The management discussion and performance figures which follow highlight the
Funds' efforts to capture value for our investors during
1
<PAGE>
the last six months. We hope you find it enlightening and we thank you for your
continued investment.
STAGECOACH FUNDS AUGUST 31, 1997
Each LifePath Fund invests in a corresponding LifePath Master Portfolio, which
in turn invests directly in individual securities. References to the Fund are
to the Fund or Master Portfolio, as context requires. The S&P 500 Index is an
unmanaged index of 500 widely held common stocks representing, among others,
industrial, financial, utility and transportation companies listed or traded on
national exchanges or over-the-counter markets. The Lehman Brothers Long-Term
US Treasury Bond Index is an unmanaged index composed of US Treasury bonds with
10-year or longer maturities.
2
<PAGE>
INVESTMENT ADVISOR DISCUSSION
INVESTMENT ADVISOR DISCUSSION
HOW HAVE THE FUNDS PERFORMED OVER THE PREVIOUS SIX-MONTHS?
The returns for the reporting period (March 1, 1997 through August 31, 1997)
and for the previous twelve months (from September 1, 1996 through August 31,
1997) were as follows:
<TABLE>
<CAPTION>
Six
Months 1 Year
<S> <C> <C>
LifePath 2000..................................................... 5.62% 12.54%
LifePath 2010..................................................... 8.45% 20.29%
LifePath 2020..................................................... 10.61% 25.85%
LifePath 2030..................................................... 11.39% 30.01%
LifePath 2040..................................................... 13.36% 33.41%
</TABLE>
These returns are for Class A shares only and are exclusive of sales charges.
Past performance is not predictive of future results and the net asset value
and investment returns of the Funds will fluctuate with changes in market con-
ditions.
HOW DO THESE PERFORMANCE FIGURES COMPARE TO RECENT EXPERIENCE?
If we compare the six month and twelve month returns given above to the twelve
month returns during the period from March 1, 1996 through February 28, 1997,
we can see that the trend is generally positive. The returns for the year ended
February 28, 1997 were as follows:
<TABLE>
<S> <C>
LifePath 2000............................................................ 7.23%
LifePath 2010............................................................ 11.89%
LifePath 2020............................................................ 15.14%
LifePath 2030............................................................ 18.13%
LifePath 2040............................................................ 19.89%
</TABLE>
For example, the six month total return for the LifePath 2000 Fund through Au-
gust 31, 1997 was 5.62% as compared to 7.23% for the twelve month period ended
February 28, 1997.
The LifePath Funds' asset allocation model tries to capture and take advantage
of broad economic and market trends, within the risk tolerance for the particu-
lar Fund. During the six-month period covered by this report, the S&P 500 In-
dex, one of the most commonly used equity market indexes, had a total return of
13.74%. For the year ended August 31, 1997, the return was 37.38%. These are
very strong gains that reflect the continuing strong equity market enjoyed in
recent years. The bond market, as measured by the Lehman Brothers Long Govern-
ment Bond Index, had returns of 5.89% and 12.52% for the six month and one year
periods ended August 31, 1997, respectively. These returns showed an improve-
ment that particularly benefited the shorter-dated Funds, which typically have
a greater bond and fixed income exposure than the longer-dated Funds.
3
<PAGE>
CAN YOU BRIEFLY STATE THE PRIMARY FACTORS DRIVING RETURNS IN THE FOLLOWING
ASSET CLASSES?
LARGE CAP VALUE--Increasing corporate earnings and a strong economy increased
total returns for large company stocks. The increased corporate earnings in
particular justify and support higher stock prices in many investors' minds.
MEDIUM CAP GROWTH--Similar to large cap value stocks, increased earnings, a
strong economy low inflation and lessened interest rate-hike fears helped to
propel this asset class.
INTERMEDIATE GOVERNMENT--Intermediate government bonds are generally less in-
terest rate sensitive than long government bonds. As a result, they did not
fall as much as the long bonds in March when the Federal Reserve increased the
federal funds target rate. On the other hand, intermediate bonds did not enjoy
as strong a rally as long bonds in July when the Fed eased fears by not raising
rates.
INTERNATIONAL (EXCEPT JAPAN)--The international equity market has shown a high
correlation to the U.S. equity market over the last year or two while also ex-
periencing strong corporate earnings and growing economies. This was generally
in the six months period as well.
THE TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED AUGUST 31, 1997 PROVIDED ABOVE
SHOW A SPREAD FROM 5.62% TO 13.36%. THIS IS RELATIVELY SMALLER THAN IN THE PAST
YEAR. WHY?
The LifePath 2040 Fund, the most aggressive of the Funds, is generally the most
heavily invested in equities. The LifePath 2000 Fund has a greater investment
in shorter-term, and generally more stable, fixed-income investments. The dif-
ference in the returns for these two Funds is therefore highly dependent on the
divergent returns of stocks and bonds. Over the last year, equities have
outperformed bonds by a large measure, particularly after impressive gains in
June and July. In August, however, the stock market, as represented by the S&P
500, dropped 5.3% while bonds, as measured by the Lehman Brothers Long Govern-
ment Bond Index, fell by only 0.4%. As a result, the spread of returns for the
Funds converged somewhat.
WHAT FACTORS COME INTO PLAY WHEN SHIFTING ASSETS BETWEEN THE FUNDS' INVESTMENT
OPTIONS? DO YOU SHIFT INTO UNDERVALUED CLASSES (A MORE AGGRESSIVE APPROACH) OR
AWAY FROM OVERVALUED CLASSES (A MORE DEFENSIVE OR CONSERVATIVE APPROACH)?
The majority of each Fund's allocation is determined by a long-term strategic
view. This long-term view is generally not greatly affected by short-term mar-
ket swings. The Funds, however, do make tactical allocations to take advantage
of shorter-term market conditions. Such tactical allocations are important, but
they play a smaller role than the long-term view.
4
<PAGE>
INVESTMENT ADVISOR DISCUSSION
Each Fund's strategic allocations are primarily influenced by the level of
risk, tolerance for each Fund. As such, the LifePath 2000 Fund has a much more
conservative allocation than the LifePath 2040 Fund. Within each Fund's strate-
gic allocation, tactical allocations attempt to take advantage of short-term
market conditions if their conditions make one asset class more attractive on a
risk and return basis than another. In other words, whether an asset is over-
valued or undervalued is not as important as its relative valuation versus al-
ternative permissable investments.
In the beginning of the period, the Funds made small shifts into bonds as the
stock market rose. This is not to say that the equity market was "overvalued",
but the higher value of stocks did make bonds more attractive in relation to
the risks stocks entail as opposed to bonds. After the bond market rallied, the
equation shifted again, with stocks again becoming more attractive and the al-
locations gradually shifting closer to what they were at the beginning of the
period. The overall strategic targets remain very steady.
THROUGHOUT THE LIFE OF A FUND, ARE ALLOCATION SHIFTS MORE STRATEGIC OR TACTICAL
IN NATURE?
The majority of allocation shifts are strategic in nature, in other words, they
are made with a long-term perspective. As a Fund ages, the allocation of its
assets becomes more conservative. Forty years from now, the strategic alloca-
tion of LifePath 2040 will look very similar to the strategic allocation of
today's LifePath 2000. Tactical allocations are responsible for a much smaller
portion of the allocation shifts. The weight given to these tactical moves is
the same for each of the five Funds. Tactical shifts for the more aggressive,
longer-dated Funds tend to be between stocks, bonds and cash. For the shorter-
duration Funds, tactical allocations tend to be shifts between longer-duration
bonds, shorter duration bonds and cash.
GENERALLY SPEAKING, HOW DID THE TACTICAL ALLOCATIONS SHIFT DURING THE REPORTING
PERIOD?
In broad terms, we can look at the Fixed-Income and Equity Models. These are
asset allocation models without the more narrowly focused asset classes the
LifePath Funds may use. By looking at broad categories, we can see that the
Fixed-Income Model became more conservative and the Equity Model less conserva-
tive. The LifePath 2000, the Fund most heavily invested in fixed income securi-
ties, began the six-month period with 100% investment in notes. By August 31,
the allocation shifted to 60% notes and 40% cash. This reflected our belief
that cash became relatively more attractive than bonds, particularly after the
bond market's mild rally had run its course. The LifePath 2040 Fund, the Fund
most heavily invested in US Equities, had 60% of its allocation in stocks and
40% in bonds in March. The period closed with 85% allocated to stocks and only
15% in bonds. This reflected the equity market's strong returns and attractive-
ness relative to bonds.
5
<PAGE>
ASSET CLASS MIX
AS OF 8/31/97
<TABLE>
- --------------------------------------------------------------------------
<CAPTION>
LIFEPATH LIFEPATH LIFEPATH LIFEPATH LIFEPATH
STOCKS 2000 2010 2020 2030 2040
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Large Capitalization--
Value 2.04% 12.35% 19.69% 24.11% 28.01%
- --------------------------------------------------------------------------
Large Capitalization--
Growth 3.76 13.75 19.68 24.39 30.90
- --------------------------------------------------------------------------
Medium Capitalization--
Value 2.95 2.86 3.22 3.73 3.76
- --------------------------------------------------------------------------
Medium Capitalization--
Growth 2.56 2.71 2.93 3.53 3.52
- --------------------------------------------------------------------------
Small Capitalization--
Value 0.49 0.31 0.46 0.49 0.43
- --------------------------------------------------------------------------
Small Capitalization--
Growth 0.16 0.12 0.19 0.18 0.20
- --------------------------------------------------------------------------
Micro Capitalization 0.03 0.02 0.03 0.03 0.03
- --------------------------------------------------------------------------
Utilities 0.62 0.34 0.40 0.44 0.61
- --------------------------------------------------------------------------
Japan 1.06 2.58 3.29 3.91 4.68
- --------------------------------------------------------------------------
International (except
Japan) 5.43 7.70 9.80 12.70 12.86
- --------------------------------------------------------------------------
BONDS
- --------------------------------------------------------------------------
Long-Term Government 1.01 2.54 7.96 14.63 5.19
- --------------------------------------------------------------------------
Long-Term Corporate 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------
Intermediate-Term
Government 61.08 41.79 20.76 2.68 0.00
- --------------------------------------------------------------------------
Intermediate-Term
Corporate 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------
Mortgage-Backed 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------
Foreign 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------
MONEY MARKET
- --------------------------------------------------------------------------
U.S. Treasury Bills 6.65 4.97 3.04 2.14 0.47
- --------------------------------------------------------------------------
Cash Equivalents 8.44 3.47 4.09 2.61 5.46
- --------------------------------------------------------------------------
Repurchase Agreements 3.72 4.49 4.46 4.43 4.22
- --------------------------------------------------------------------------
TOTAL 100.00 100.00 100.00 100.00 100.00
- --------------------------------------------------------------------------
</TABLE>
Any differences between the percentages above and the percentages in the Port-
folios of Investments are due to unsettled trades and allocations to large cap
stocks through S&P 500 futures contracts.
6
<PAGE>
[This page intentionally left blank].
7
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
AUGUST 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
- --------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In corresponding Master Portfolio, at market value
(Note 1) $ 73,299,742 $ 87,334,697
RECEIVABLES:
Receivable from WFB (Note 2) 868 15,810
Fund shares sold 0 195,281
TOTAL ASSETS 73,300,610 87,545,788
LIABILITIES
PAYABLES:
Due to sponsor and distributor 25,950 29,161
Due to WFB (Note 2) 0 0
Capital shares redeemed 241,330 16,000
TOTAL LIABILITIES 267,280 45,161
TOTAL NET ASSETS $ 73,033,330 $ 87,500,627
NET ASSETS CONSIST OF:
Paid-in capital $ 64,941,689 $ 69,800,146
Undistributed net investment income 494,090 425,586
Undistributed net realized gain on investment 2,850,590 3,847,367
Net unrealized appreciation of investments 4,746,961 13,427,528
TOTAL NET ASSETS $ 73,033,330 $ 87,500,627
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER
SHARE
Net Assets - Class A $ 73,020,210 $ 85,323,652
Shares outstanding - Class A 6,598,903 6,564,393
Net asset value and offering price per share - Class
A $ 11.07 $ 13.00
Net Assets - Class B $ 0 $ 2,150,029
Shares outstanding - Class B 0 166,615
Net asset value and offering price per share - Class
B $ 0 $ 12.90
Net Assets - Institutional class $ 13,120 $ 26,946
Shares outstanding - Institutional class 1,269 2,317
Net asset value and offering price per share -
Institutional class $ 10.34 $ 11.63
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
STATEMENT OF ASSETS & LIABILITIES--AUGUST 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- -------------------------------------
<S> <C> <C>
$ 161,964,621 $ 116,999,983 $ 227,245,248
5,031 0 0
63,620 93,241 459,340
162,033,272 117,093,224 227,704,588
42,662 31,973 51,307
0 460 37,564
9,322 11,300 13,290
51,984 43,733 102,161
$ 161,981,288 $ 117,049,491 $ 227,602,427
$ 119,874,058 $ 82,560,364 $ 159,863,477
572,596 313,265 335,598
7,087,529 3,900,394 16,793,042
34,447,105 30,275,468 50,610,310
$ 161,981,288 $ 117,049,491 $ 227,602,427
$ 156,819,332 $ 112,370,680 $ 216,662,108
11,061,708 7,323,441 13,276,707
$ 14.18 $ 15.34 $ 16.32
$ 5,085,729 $ 4,634,089 $ 10,917,190
362,842 306,307 680,430
$ 14.02 $ 15.13 $ 16.04
$ 76,227 $ 44,722 $ 23,129
5,685 2,985 1,474
$ 13.41 $ 14.98 $ 15.69
- ------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
- ----------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME ALLOCATED FROM MASTER
PORTFOLIO
Dividends $ 178,747 $ 406,770
Interest 1,844,799 1,407,612
Expenses (214,541) (234,290)
NET INVESTMENT INCOME ALLOCATED FROM MASTER
PORTFOLIO 1,809,005 1,580,092
EXPENSES (NOTE 2)
Administration fee 38,977 42,594
Shareholder servicing fees 77,955 85,188
Transfer agency fees 38,977 42,594
Distribution costs - Class A 97,428 105,634
Distribution costs - Class B 0 2,405
TOTAL EXPENSES 253,337 278,415
NET INVESTMENT INCOME 1,555,668 1,301,677
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ALLOCATED FROM MASTER PORTFOLIO
Net realized gain (loss) on sale of investments 1,554,934 2,095,596
Net realized gain (loss) on sale of futures
contracts 0 0
NET REALIZED GAIN (LOSS) ON INVESTMENTS 1,554,934 2,095,596
CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIO
Net change in unrealized appreciation
(depreciation) of investments 985,758 3,388,506
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS 985,758 3,388,506
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 4,096,360 $ 6,785,779
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- -------------------------------------
<S> <C> <C>
$ 1,010,299 $ 870,801 $ 1,866,421
1,700,876 801,605 636,115
(420,039) (298,838) (574,587)
2,291,136 1,373,568 1,927,949
76,404 54,356 104,526
152,808 108,711 209,051
76,404 54,356 104,526
188,494 133,577 256,525
7,271 6,773 14,283
501,381 357,773 688,911
1,789,755 1,015,795 1,239,038
2,971,418 1,471,096 10,509,033
0 0 10,453
2,971,418 1,471,096 10,519,486
10,211,562 9,586,351 13,657,251
0 0 (7,881)
10,211,562 9,586,351 13,649,370
$ 14,972,735 $ 12,073,242 $ 25,407,894
- -----------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2000 Fund
-----------------------------------
For the
Six Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- -----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 1,555,668 $ 3,636,851
Net realized gain (loss) on sale of
investments 1,554,934 2,732,074
Net change in unrealized appreciation
(depreciation) of investments 985,758 (959,715)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,096,360 5,409,210
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (1,620,152) (3,756,712)
Class B 0 0
Institutional class 0 (570)
From net realized gain from sale of
investments
Class A 0 (1,721,568)
Class B 0 0
Institutional class 0 (48,077)
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold - Class A 5,553,171 37,948,187
Reinvestment of dividends - Class A 1,573,478 5,135,618
Cost of shares redeemed - Class A (21,530,634) (58,589,767)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (14,403,985) (15,505,962)
Proceeds from shares sold - Class B 0 0
Reinvestment of dividends - Class B 0 0
Cost of shares redeemed - Class B 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 0 0
Proceeds from shares sold -
Institutional class 0 1,267,997
Reinvestment of dividends -
Institutional class 0 208,022
Cost of shares redeemed - Institutional
class 0 (18,222,796)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 0 (16,746,777)
INCREASE (DECREASE) IN NET ASSETS (11,927,777) (32,370,456)
NET ASSETS:
Beginning net assets 84,961,107 117,331,563
ENDING NET ASSETS $ 73,033,330 $ 84,961,107
- -----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2010 Fund LifePath 2020 Fund
- ------------------------------------ --------------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
August 31, 1997 Year Ended August 31, 1997 Year Ended
(Unaudited) February 28, 1997 (Unaudited) February 28, 1997
- ----------------------------------------------------------
<S> <C> <C> <C>
$ 1,301,677 $ 2,438,078 $ 1,789,755 $ 3,165,347
2,095,596 2,784,852 2,971,418 8,285,130
3,388,506 704,734 10,211,562 3,932,094
6,785,779 5,927,664 14,972,735 15,382,571
(1,380,533) (2,393,878) (1,714,211) (3,234,978)
(2,719) 0 (6,978)
(791) (1,673) (911) (1,862)
0 (999,794) 0 (4,457,911)
0 0 0 0
0 (138,908) 0 (97,440)
8,936,604 34,070,450 15,923,959 52,706,149
1,364,346 3,206,892 1,691,288 3,353,041
(13,328,256) (26,504,856) (20,138,198) (43,292,145)
(3,027,306) 10,772,486 (2,522,951) 12,767,045
2,141,903 0 4,961,345 0
2,688 0 6,754 0
(13,511) 0 (10,106) 0
2,131,080 0 4,957,993 0
0 2,529,219 0 1,484,241
791 289,983 911 349,700
(24,943) (34,601,841) (43) (38,954,344)
(24,152) (31,782,639) 868 (37,120,403)
4,481,358 (18,616,742) 15,686,545 (16,762,978)
83,019,269 101,636,011 146,294,743 163,057,721
$ 87,500,627 $ 83,019,269 $ 161,981,288 $ 146,294,743
- ------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2030 Fund
-----------------------------------
For the
Six Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- -----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 1,015,795 $ 1,657,635
Net realized gain (loss) on sale of
investments 1,471,096 4,461,859
Net change in unrealized appreciation
(depreciation) of investments 9,586,351 5,090,075
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 12,073,242 11,209,569
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (935,793) (1,710,475)
Class B (5,286) 0
Institutional class (745) (5,645)
From net realized gain from sale of
investments
Class A 0 (2,265,932)
Class B 0 0
Institutional class 0 (61,335)
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold - Class A 10,979,502 30,971,697
Reinvestment of dividends - Class A 928,424 3,826,842
Cost of shares redeemed - Class A (11,632,980) (27,148,781)
NET INCREASE (DECREASE) IN NET SHARES
OUTSTANDING -
CLASS A 274,946 7,649,758
Proceeds from shares sold - Class B 4,532,880 0
Reinvestment of dividends - Class B 5,305 0
Cost of shares redeemed - Class B (14,442) 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 4,523,743 0
Proceeds from shares sold -
Institutional class 0 1,939,792
Reinvestment of dividends -
Institutional class 745 188,977
Cost of shares redeemed - Institutional
class (818) (24,283,479)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (73) (22,154,710)
INCREASE (DECREASE) IN NET ASSETS 15,930,034 (7,338,770)
NET ASSETS:
Beginning net assets 101,119,457 108,458,227
ENDING NET ASSETS $ 117,049,491 $ 101,119,457
- -----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2040 Fund
- -----------------------------------------------------------------------------
For the
Six Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- ------------------------------
<S> <C>
$ 1,239,038 $ 2,019,898
10,519,486 13,884,725
13,649,370 11,621,464
25,407,894 27,526,087
(1,176,194) (2,045,803)
(5,678)
(152) (338)
0 (7,609,699)
0 0
0 (797,501)
28,462,647 76,803,382
1,168,228 2,589,866
(26,583,537) (52,840,894)
3,047,338 26,552,354
10,863,600 0
5,553 0
(120,011) 0
10,749,142 0
0 1,917,732
152 248,730
0 (32,335,375)
152 (30,168,913)
38,022,502 13,456,187
189,579,925 176,123,738
$ 227,602,427 $ 189,579,925
- ------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2000 Fund
-----------------------------------------------------------------------------------------------
Six Months Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
---------------------- ---------------------- ----------------------- ----------------------
Class Institutional Class Institutional Class Institutional Class Institutional
A Class A Class A Class A Class
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.71 $ 9.79 $ 10.64 $10.67 $ 9.92 $ 9.94 $ 10.00 $10.00
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.23 0.21 0.42 1.29 0.40 0.42 0.34 0.35
Net realized and
unrealized gain (loss)
on investments 0.35 0.34 0.28 (0.60) 0.86 0.86 (0.14) (0.12)
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM INVESTMENT
OPERATIONS 0.58 0.55 0.70 0.69 1.26 1.28 0.20 0.23
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.22) 0.00 (0.42) (1.36) (0.41) (0.42) (0.27) (0.28)
Distributions from net
realized capital gains 0.00 0.00 (0.21) (0.21) (0.13) (0.13) (0.01) (0.01)
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM DISTRIBUTIONS (0.22) 0.00 (0.63) (1.57) (0.54) (0.55) (0.28) (0.29)
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, END OF
PERIOD $ 11.07 $10.34 $ 10.71 $ 9.79 $ 10.64 $ 10.67 $ 9.92 $ 9.94
<CAPTION>
======= ============= ======= ============= ======== ============= ======= =============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN (NOT
ANNUALIZED) 5.51% 5.62% 6.74% 7.23% 12.98% 13.19% 2.10% 2.38%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000) $73,020 $ 13 $84,949 $ 12 $100,070 $17,262 $54,617 $7,499
Number of shares
outstanding, end of
period (000) 6,599 1 7,934 1 9,406 1,618 5,503 754
RATIOS TO AVERAGE NET
ASSETS (ANNUALIZED):(/1/)
Ratio of expenses to
average net assets 1.20% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
Ratio of net
investment income to
average net assets 4.00% 4.24% 3.93% 4.17% 4.00% 4.23% 4.62% 4.89%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LifePath 2010 Fund
- ------------------------------------------------------------------------------------------------------
Six Months Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
- ------------------------------ ---------------------- ---------------------- ----------------------
Class Class Institutional Class Institutional Class Institutional Class Institutional
A B Class A Class A Class A Class
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 12.20 $12.02 $10.94 $ 11.42 $11.47 $ 9.99 $ 10.02 $ 10.00 $ 10.00
<CAPTION>
- ------- ------ ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0.19 0.03 0.22 0.34 1.57 0.32 0.34 0.34 0.33
0.82 0.85 0.69 0.95 (0.36) 1.58 1.60 (0.02) 0.01
<CAPTION>
- ------- ------ ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1.01 0.88 0.91 1.29 1.21 1.90 1.94 0.32 0.34
(0.21) 0.00 (0.22) 0.34 (1.57) (0.33) (0.35) (0.28) (0.27)
0.00 0.00 0.00 (0.17) (0.17) (0.14) (0.14) (0.05) (0.05)
<CAPTION>
- ------- ------ ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(0.21) 0.00 (0.22) (0.51) (1.74) (0.47) (0.49) (0.33) (0.32)
<CAPTION>
- ------- ------ ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.00 $12.90 $11.63 $ 12.20 $10.94 $ 11.42 $ 11.47 $ 9.99 $ 10.02
<CAPTION>
======= ====== ============= ======= ============= ======= ============= ======= =============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
8.34% 7.80% 8.45% 11.60 % 11.89% 19.40% 19.69% 3.31% 3.53%
$85,324 $2,150 $ 27 $82,971 $ 49 $67,178 $34,458 $36,764 $13,028
6,564 167 2 6,801 4 5,883 3,004 3,679 1,300
1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
3.06% 2.56% 3.32% 3.16% 3.41% 3.06% 3.27% 4.40% 4.61%
- -------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2020 Fund
---------------------------------------------------------------------------------------
Six Months
Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
---------------------------- ------------------ ------------------ -----------------
Institu- Institu- Institu- Institu-
Class Class tional Class tional Class tional Class tional
A B Class A Class A Class A Class
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.98 $ 12.79 $ 12.28 $ 11.98 $ 11.98 $ 10.17 $ 10.17 $ 10.00 $ 10.00
<CAPTION>
-------- -------- -------- -------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.16 0.03 0.17 0.27 0.96 0.27 0.29 0.28 0.30
Net realized and
unrealized gain on
investments 1.19 1.20 1.12 1.43 0.72 2.03 2.03 0.12 0.12
<CAPTION>
-------- -------- -------- -------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM INVESTMENT
OPERATIONS 1.35 1.23 1.29 1.70 1.68 2.30 2.32 0.40 0.42
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.15) 0.00 (0.16) (0.28) (0.96) (0.28) (0.30) (0.23) (0.25)
Distributions from net
realized capital gains 0.00 0.00 0.00 (0.42) (0.42) (0.21) (0.21) 0 .00 0.00
<CAPTION>
-------- -------- -------- -------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM DISTRIBUTIONS (0.15) 0.00 (0.16) (0.70) (1.38) (0.49) (0.51) (0.23) (0.25)
<CAPTION>
-------- -------- -------- -------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, END OF
PERIOD $ 14.18 $14.02 $13.41 $ 12.98 $12.28 $ 11.98 $ 11.98 $ 10.17 $ 10.17
<CAPTION>
======== ======== ======== ======== ======== ======== ======== ======= ========
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN (NOT
ANNUALIZED) 10.52% 9.96% 10.61% 14.65 % 15.14% 22.94% 23.18% 4.12% 4.39%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000) $156,819 $5,086 $ 76 $146,226 $ 69 $122,488 $40,570 $66,036 $16,618
Number of shares
outstanding, end of
period (000) 11,062 363 6 11,264 6 10,224 3,385 6,494 1,634
RATIOS TO AVERAGE NET
ASSETS
(ANNUALIZED):(/1/)
Ratio of expenses to
average net assets 1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 0.95% 0.95%
Ratio of net investment
income to average net
assets 2.35% 1.85% 2.60% 2.33% 2.57% 2.45% 2.68% 3.64% 3.88%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LifePath 2030 Fund
- ---------------------------------------------------------------------------------------
Six Months
Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb 28, 1995
- ---------------------------- ------------------ ------------------ -----------------
Institu- Institu- Institu- Institu-
Class Class tional Class tional Class tional Class tional
A B Class A Class A Class A Class
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.83 $13.63 $13.70 $ 12.34 $12.37 $ 10.17 $ 10.18 $ 10.00 $10.00
- -------- -------- -------- -------- -------- -------- -------- ------- --------
0.14 .02 0.16 0.22 0.49 0.21 0.23 0.26 0.29
1.50 1.48 1.37 1.83 1.66 2.45 2.47 0.13 0.14
- -------- -------- -------- -------- -------- -------- -------- ------- --------
1.64 1.50 1.53 2.05 2.15 2.66 2.70 0.39 0.43
(0.13) 0.00 (0.25) (0.23) (0.49) (0.22) (0.24) (0.22) (0.25)
0.00 0.00 0.00 (0.33) (0.33) (0.27) (0.27) 0.00 0.00
- -------- -------- -------- -------- -------- -------- -------- ------- --------
(0.13) 0.00 (0.25) (0.56) (0.82) (0.49) (0.51) (0.22) (0.25)
- -------- -------- -------- -------- -------- -------- -------- ------- --------
$ 15.34 $15.13 $14.98 $ 13.83 $13.70 $ 12.34 $ 12.37 $ 10.17 $10.18
======== ======== ======== ======== ======== ======== ======== ======= ========
11.92% 11.30% 11.39% 17.01% 18.13% 26.53% 26.88% 4.03% 4.42%
$112,371 $4,634 $ 45 $101,078 $ 41 $83,012 $25,447 $41,153 $9,682
7,323 306 3 7,307 3 6,728 2,058 4,045 951
1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
1.88% 1.38% 2.10% 1.81% 2.06% 1.92% 2.15% 3.35% 3.59%
- ----------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2040 Fund
----------------------------------------------------------------------------------------------------------
Six Months Ended
August 31, 1997 Year Ended Year Ended Year Ended
(Unaudited) Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
-------------------------------- ----------------------- ----------------------- ----------------------
Class Class Institutional Class Institutional Class Institutional Class Institutional
A B Class A Class A Class A Class
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 14.50 $ 14.29 $13.94 $ 12.84 $12.86 $ 10.37 $ 10.37 $ 10.00 $10.00
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income 0.09 0.01 0.11 0.16 0.63 0.15 0.17 0.18 0.20
Net realized and
unrealized gain on
investments 1.82 1.74 1.74 2.35 1.78 2.82 2.84 0.34 0.34
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM
INVESTMENT
OPERATIONS 1.91 1.75 1.85 2.51 2.41 2.97 3.01 0.52 0.54
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.09) 0.00 (0.10) (0.16) (0.64) (0.16) (0.18) (0.15) (0.17)
Distributions from
net realized
capital gains 0.00 0.00 0.00 (0.69) (0.69) (0.34) (0.34) 0 0
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM
DISTRIBUTIONS (0.09) 0.00 (0.10) (0.85) (1.33) (0.50) (0.52) (0.15) (0.17)
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, END
OF PERIOD $ 16.32 $ 16.04 $15.69 $ 14.50 $13.94 $ 12.84 $ 12.86 $ 10.37 $10.37
<CAPTION>
======== ======= ============= ======== ============= ======== ============= ======= =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN (NOT
ANNUALIZED) 13.22% 7.41% 13.36% 20.17% 19.89% 28.91% 29.32% 5.26% 5.55%
RATIOS/SUPPLEMENTAL DATA:
Net assets,
end of period
(000) $216,662 $10,917 $ 23 $189,560 $ 20 $142,738 $33,386 $56,737 $9,976
Number of shares
outstanding, end
of period (000) 13,277 680 1 13,073 1 11,114 2,596 5,472 962
RATIOS TO AVERAGE NET
ASSETS (ANNUALIZED):(/1/)
Ratio of expenses
to average net
assets 1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
Ratio of net
investment income
to average net
assets 1.20% 0.70% 1.45% 1.22% 1.47% 1.29% 1.53% 2.35% 2.61%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these Financial Statements.
20
<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, as amended, (the "1940 Act") as an open-end management investment com-
pany. 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 funds, of which the following commenced opera-
tions on March 1, 1994: LifePath 2000, LifePath 2010, LifePath 2020, LifePath
2030 and LifePath 2040 Funds (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 com-
panies. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and as-
sumptions that affect the reported amounts of assets and liabilities and dis-
closure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the report-
ing period. Actual results could differ from those estimates.
Each Fund is authorized to issue three classes of shares: Class A, Class B
and an Institutional Class. On March 1, 1997, the Retail Class' name was
changed to Class A and the Fund commenced offering Class B shares. The three
classes of shares differ principally in their respective distribution fees.
Shareholders of each class bear certain expenses that pertain to that particu-
lar class. All shareholders bear the common expenses of the Fund and earn in-
come 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 distri-
bution. Neither class has preferential dividend rights; differences in per
share dividend rates are generally due to differences in separate class ex-
penses, 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
Portfolio") of Master Investment Portfolio ("MIP"). Each Master
21
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
Portfolio has the same investment objective as the Fund bearing the correspond-
ing name. The value of each Fund's investment in its corresponding Master Port-
folio reflects that Fund's interest in the net assets of that Master Portfolio
( 61.41%, 47.04%, 56.06%, 61.70%, and 70.68%) for the LifePath 2000, LifePath
2010, LifePath 2020, LifePath 2030 and LifePath 2040 Funds, respectively, at
August 31, 1997. The Master Portfolios invest in a wide range of U.S. and for-
eign equity, debt securities and money market instruments. Each Master Portfo-
lio follows an asset allocation strategy among three broad investing 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 Port-
folios are valued at the last reported sale price on the primary securities ex-
change or national securities market on which such securities are traded. Secu-
rities not listed on an exchange or national securities market, or securities
in which there was no last reported sales price, 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 matur-
ing in 60 days or less, are valued at the latest quoted bid price. Any securi-
ties, restricted securities or other assets for which market quotations are not
readily available are valued at fair value as determined in good faith in ac-
cordance with policies approved by the Master Portfolios' Board of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for by each Master Portfolio on the date
the securities are purchased or sold (trade date). Revenue is recognized by
each Master Portfolio as follows: dividend income is recognized on the ex-divi-
dend 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 de-
livered. Bond discounts and premiums are amortized as required by the Internal
Revenue Code of 1986, as amended (the "Code"). All net investment income and
realized and unrealized capital gains and losses of each Master Portfolio are
allocated as required by the Code.
The performance of each Fund is directly affected by the performance of its
corresponding Master Portfolio. The financial statements of each Master Portfo-
lio, including the Portfolio of Investments, are included elsewhere in this re-
port and should be read in conjunction with the corresponding Fund's financial
statements.
22
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Each Fund declares and pays dividends to shareholders from net investment in-
come quarterly. Distributions to shareholders from any net realized capital
gains are declared and distributed annually, generally in December.
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal in-
come tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by
the Fund.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions applicable to investment companies, as
set forth in the Code, and to make distributions of investment company taxable
income and net capital gains (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. At December
31, 1996, the Funds had no remaining capital loss carryforward balances.
ORGANIZATION EXPENSES
Stephens Inc. ("Stephens"), the Funds' co-administrator, sponsor and distrib-
utor, 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 av-
erage daily net assets.
On behalf of the Funds, the Trust may enter into servicing agreements with
certain financial institutions, securities dealers and other industry profes-
sionals (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
23
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
pay each Shareholder Servicing Agent a fee of up to 0.20% of the average daily
net asset 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.
Investors Bank & Trust Company ("IBT") serves as the custodian to each Fund
and its corresponding Master Portfolio. IBT will not be entitled to receive
fees for its custodial services so long as it is entitled to receive a separate
fee from WFB for its services as Sub-Administrator of the Funds.
The Trust has also entered into administration services arrangements with WFB
and Stephens, as co-administrators, who have agreed jointly to provide general
administration services to the Funds, such as managing and coordinating third-
party service relationships. Under the arrangement, WFB and Stephens are
entitled to receive for these services a combined fee (expressed as a
percentage of average daily net assets) from each Fund of 0.10%. This fee is an
"all-in" or "semi-unified" fee and WFB and Stephens, in consideration thereof,
have agreed to bear all of the Funds' ordinary operating expenses, excluding,
generally, advisory fees and costs related to securities transactions. WFB and
Stephens may delegate certain of their administration duties to sub-
administrators.
Certain officers and directors of the Trust are also officers of Stephens. At
August 31, 1997, these officers of Stephens collectively owned less than 1% of
the Funds' outstanding shares.
24
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
3. CAPITAL SHARE TRANSACTIONS
As of August 31, 1997, the Trust has authorized an unlimited number of shares
of beneficial interest. Transactions in capital shares for each Fund were as
follows:
<TABLE>
<CAPTION>
LifePath 2000 Fund
-----------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28, 1997
(Unaudited)
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 508,624 3,580,908
Shares issued in reinvestments of
dividends--Class A 147,167 486,593
Shares redeemed--Class A (1,990,978) (5,539,884)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A (1,335,187) (1,472,383)
Shares sold--Class B 0 0
Shares issued in reinvestments of
dividends--Class B 0 0
Shares redeemed--Class B 0 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 0 0
Shares sold--Institutional Class 0 119,465
Shares issued in reinvestments of
dividends--Institutional Class 0 19,942
Shares redeemed--Institutional Class 0 (1,755,819)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS 0 (1,616,412)
</TABLE>
<TABLE>
<CAPTION>
LifePath 2010 Fund
-----------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28, 1997
(Unaudited)
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 711,780 2,915,095
Shares issued in reinvestments of
dividends--Class A 110,777 275,092
Shares redeemed--Class A (1,059,450) (2,272,271)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A (236,893) 917,916
Shares sold--Class B 167,449 0
Shares issued in reinvestments of
dividends--Class B 212 0
Shares redeemed--Class B (1,046) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 166,615 0
Shares sold--Institutional Class 0 221,309
Shares issued in reinvestments of
dividends--Institutional Class 72 25,767
Shares redeemed--Institutional Class (2,198) (3,246,296)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS (2,126) (2,999,220)
</TABLE>
25
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 Fund
----------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28,1997
(Unaudited)
- -------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 1,159,872 4,270,394
Shares issued in reinvestments of
dividends--Class A 127,107 275,620
Shares redeemed--Class A (1,489,098) (3,506,234)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A (202,119) 1,039,780
Shares sold--Class B 363,082 0
Shares issued in reinvestments of
dividends--Class B 487 0
Shares redeemed--Class B (727) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 362,842 0
Shares sold--Institutional Class 0 124,129
Shares issued in reinvestments of
dividends--Institutional Class 73 29,678
Shares redeemed--Institutional Class (3) (3,533,425)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS 70 (3,379,618)
</TABLE>
<TABLE>
<CAPTION>
LifePath 2030 Fund
-----------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28, 1997
(Unaudited)
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 750,536 2,403,224
Shares issued in reinvestments of
dividends--Class A 64,744 296,195
Shares redeemed--Class A (798,644) (2,120,516)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A 16,636 578,903
Shares sold--Class B 306,891 0
Shares issued in reinvestments of
dividends--Class B 355 0
Shares redeemed--Class B (939) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 306,307 0
Shares sold--Institutional Class 0 156,936
Shares issued in reinvestments of
dividends--Institutional Class 55 15,512
Shares redeemed--Institutional Class (60) (2,227,326)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS (5) (2,054,878)
</TABLE>
26
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2040 Fund
----------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28,1997
(Unaudited)
- -------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 1,837,582 5,678,582
Shares issued in reinvestments of
dividends--Class A 77,145 196,508
Shares redeemed--Class A (1,711,392) (3,916,082)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A 203,335 1,959,008
Shares sold--Class B 687,879 0
Shares issued in reinvestments of
dividends--Class B 350 0
Shares redeemed--Class B (7,799) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 680,430 0
Shares sold--Institutional Class 0 148,636
Shares issued in reinvestments of
dividends--Institutional Class 10 19,679
Shares redeemed--Institutional Class 0 (2,763,338)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS 10 (2,595,023)
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of August 31, 1997, certain Master Portfolios had loaned securities which
were collateralized by cash, money market mutual funds, and repurchase agree-
ments. Each Master Portfolio receives transaction fees for providing services
in connection with the securities lending program. The value of the securities
on loan and the value of the related collateral are disclosed in the corre-
sponding Master Investment Portfolio financial statements.
27
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS
PERCENT OF NET ASSETS 21.51% 46.15%
ADVERTISING
PERCENT OF NET ASSETS 0.03% 0.04%
Omnicom Group 588 $ 39,837 920 $ 62,330
Outdoor Systems Inc 0 -- 600 15,863
------------ ------------
TOTAL ADVERTISING
- VALUE $ 39,837 $ 78,193
- COST $ 19,978 $ 49,037
AEROSPACE & DEFENSE
PERCENT OF NET ASSETS 0.23% 0.75%
Allied Signal Inc 449 $ 37,071 2,213 $ 182,711
Boeing Co 800 43,550 7,293 397,013
Briggs & Stratton Corp 50 2,416 157 7,585
Coltec Industries+ 600 13,425 700 15,663
GenCorp Inc 0 -- 0 --
General Dynamics Corp 61 4,857 476 37,902
General Motors Corp Class H 800 50,850 1,100 69,919
Gulfstream Aerospace Corp+ 0 -- 400 11,850
Lockheed Martin Corp 152 15,761 1,417 146,925
Newport News Shipbuilding 64 1,244 293 5,673
Northrop Grumman Corp 36 4,214 426 49,869
Primex Technologies Inc 47 1,375 56 1,638
Raytheon Co 174 9,570 1,773 97,515
Rockwell International Corp 211 12,660 1,590 95,400
Rohr Industries Inc+ 0 -- 0 --
Sequa Corp Class A+ 110 5,638 0 --
Stewart & Stevenson Services 364 8,873 380 9,263
Sundstrand Corp 526 31,034 560 33,040
Textron Inc 60 3,739 1,199 74,713
United Technologies Corp 296 23,107 1,901 148,397
------------ ------------
TOTAL AEROSPACE & DEFENSE
- VALUE $ 269,384 $ 1,385,076
- COST $ 209,986 $ 1,054,963
AIRLINES
PERCENT OF NET ASSETS 0.25% 0.47%
AMR Corp+ 33 $ 3,325 656 $ 66,092
British Airways PLC ADR (UK) 1,300 134,306 2,800 289,275
Comair Holdings Inc 0 -- 500 13,438
Continental Airlines Class
B+ 0 -- 500 18,313
</TABLE>
28
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
64.91% 78.80% 93.50%
0.04% 0.04% 0.06%
1,720 $ 116,530 1,210 $ 81,978 2,058 $ 139,430
0 -- 0 -- 1,300 34,369
------------ ------------ ------------
$ 116,530 $ 81,978 $ 173,799
$ 55,352 $ 43,017 $ 116,974
1.15% 1.39% 1.66%
5,063 $ 418,014 4,065 $ 335,617 8,935 $ 737,696
18,281 995,172 14,540 791,521 29,452 1,603,293
432 20,871 341 16,475 590 28,504
700 15,663 900 20,138 1,200 26,850
485 12,974 0 -- 0 --
1,138 90,613 868 69,114 1,849 147,227
2,100 133,481 1,500 95,344 2,600 165,263
0 -- 500 14,813 800 23,700
3,595 372,757 2,829 293,332 5,701 591,122
616 11,927 465 9,013 846 16,399
1,200 140,475 937 109,688 1,970 230,613
108 3,153 86 2,510 126 3,685
4,362 239,910 3,455 190,025 7,089 389,895
3,954 237,240 3,098 185,880 6,230 373,800
287 7,767 207 5,602 0 --
137 7,021 102 5,228 0 --
495 12,066 365 8,897 845 20,597
1,390 82,010 930 54,870 1,390 82,010
3,020 188,184 2,426 151,170 4,816 300,097
4,220 329,424 3,472 271,033 7,449 581,488
------------ ------------ ------------
$ 3,318,722 $ 2,630,270 $ 5,322,239
$ 2,350,087 $ 1,849,714 $ 4,385,882
0.60% 0.75% 0.85%
1,649 $ 166,137 1,330 $ 133,998 2,761 $ 278,171
5,725 591,464 4,800 495,900 8,450 872,991
0 -- 600 16,125 1,000 26,875
0 -- 0 -- 1,000 36,625
</TABLE>
29
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Delta Air Lines Inc 38 $ 3,287 533 $ 46,105
Japan Air Lines Co ADR
(Japan) 8,700 70,687 31,600 256,750
KLM Royal Dutch Airlines ADR
(Netherlands) 507 16,604 1,110 36,353
Northwest Airlines Corp
Class A+ 600 21,938 900 32,906
Southwest Airlines Co 125 3,500 1,084 30,352
UAL Corp+ 500 38,094 700 53,331
USAir Group Inc+ 129 4,402 625 21,328
ValuJet Inc+ 300 1,650 200 1,100
------------ ------------
TOTAL AIRLINES
- VALUE $ 297,793 $ 865,343
- COST $ 302,460 $ 901,994
APPAREL
PERCENT OF NET ASSETS 0.08% 0.19%
CVS Corp 640 $ 36,080 1,334 $ 75,204
Fruit of the Loom Inc Class
A+ 14 375 624 16,692
Hartmarx Corp+ 81 628 230 1,783
Land's End Inc+ 0 -- 0 --
Liz Claiborne Inc 88 3,922 555 24,732
Nike Inc Class B 370 19,749 2,289 122,175
Nine West Group Inc+ 200 8,450 400 16,900
OshKosh B'Gosh Class A 26 660 49 1,243
Phillips Van Heusen Corp 0 -- 0 --
Reebok International Ltd 95 4,174 405 17,795
Russell Corp 73 2,081 282 8,037
Stride Rite Corp 63 748 375 4,453
VF Corp 63 5,568 479 42,332
Warnaco Group Inc Class A 300 9,731 600 19,463
------------ ------------
TOTAL APPAREL
- VALUE $ 92,166 $ 350,809
- COST $ 62,121 $ 254,086
AUTO PARTS & EQUIPMENT
PERCENT OF NET ASSETS 0.08% 0.29%
Bandag Inc 0 $ -- 100 $ 5,331
Bandag Inc Class A 100 5,313 100 5,313
Cooper Tire & Rubber Co 21 528 615 15,452
Dana Corp 48 2,211 747 34,409
Deluxe Corp 70 2,306 614 20,224
Eaton Corp 83 7,475 551 49,624
Echlin Inc 3 111 469 17,382
Genuine Parts Co 152 4,693 1,368 42,237
Goodyear Tire & Rubber Co 140 8,628 1,179 72,656
Illinois Tool Works Inc 348 16,835 2,006 97,040
</TABLE>
30
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,368 $ 118,332 1,122 $ 97,053 2,262 $ 195,663
63,175 513,297 48,550 394,469 101,900 827,937
2,429 79,550 1,974 64,649 3,339 109,352
1,500 54,844 1,300 47,531 1,900 69,469
2,709 75,852 2,088 58,464 4,354 121,912
1,200 91,425 900 68,569 1,500 114,281
1,400 47,775 1,105 37,708 2,623 89,510
400 2,200 200 1,100 700 3,850
------------ ------------ ------------
$ 1,740,876 $ 1,415,566 $ 2,746,636
$ 1,772,973 $ 1,457,310 $ 2,877,220
0.28% 0.33% 0.41%
3,046 $ 171,718 2,425 $ 136,709 5,406 $ 304,763
1,469 39,296 1,099 29,398 2,280 60,990
389 3,015 354 2,743 618 4,789
547 14,393 0 -- 0 --
1,329 59,224 1,064 47,415 2,120 94,473
5,229 279,098 4,179 223,054 9,260 494,252
300 12,675 400 16,900 700 29,575
228 5,786 85 2,157 222 5,633
410 5,894 290 4,169 0 --
984 43,234 882 38,753 1,807 79,395
716 20,406 494 14,079 850 24,225
893 10,604 707 8,396 1,050 12,469
1,164 102,869 971 85,812 1,949 172,243
1,000 32,438 700 22,706 1,200 38,925
------------ ------------ ------------
$ 800,650 $ 632,291 $ 1,321,732
$ 579,952 $ 452,518 $ 1,087,674
0.43% 0.53% 0.64%
200 $ 10,663 100 $ 5,331 300 $ 15,994
200 10,625 200 10,625 400 21,250
1,451 36,456 1,171 29,421 2,286 57,436
1,898 87,427 1,519 69,969 3,097 142,656
1,538 50,658 1,217 40,085 2,473 81,454
1,397 125,817 1,139 102,581 2,301 207,234
1,189 44,067 935 34,653 1,884 69,826
3,293 101,672 2,620 80,877 5,375 165,953
2,851 175,693 2,276 140,259 4,633 285,509
4,521 218,703 3,625 175,359 8,005 387,242
</TABLE>
31
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ITT Industries Inc 131 $ 4,127 832 $ 26,208
Lear Corp+ 400 18,325 500 22,906
Mascotech Inc 0 -- 300 6,281
Modine Manufacturing Co 309 9,463 250 7,656
Navistar International Corp+ 31 769 550 13,647
PACCAR Inc 0 -- 554 26,246
Pep Boys- Manny Moe & Jack 57 1,511 472 12,508
Strattec Security Corp+ 10 230 28 644
Superior Industries
International Inc 322 8,775 260 7,085
TRW Inc 126 6,568 907 47,277
------------ ------------
TOTAL AUTO PARTS & EQUIPMENT
- VALUE $ 97,868 $ 530,126
- COST $ 77,009 $ 414,521
AUTOMOBILES
PERCENT OF NET ASSETS 1.30% 2.27%
Chrysler Corp 590 $ 20,724 5,065 $ 177,908
Daimler-Benz
Aktiengesellschaft ADR
(Germany) 15,150 1,131,516 32,000 2,389,999
Fiat SpA ADR (Italy) 7,480 116,875 15,730 245,781
Ford Motor Co 930 39,990 8,787 377,841
General Motors Corp Class A 580 36,395 5,419 340,042
Harley-Davidson Inc 618 33,449 850 46,006
Hertz Corp Class A 0 -- 200 6,913
Honda Motor Co Ltd ADR
(Japan) 1,000 60,500 3,800 229,900
Nissan Motor Co Ltd ADR
(Japan) 2,300 29,325 8,500 108,375
Toyota Motor Corp ADR
(Japan) 1,500 79,125 5,400 284,850
------------ ------------
TOTAL AUTOMOBILES
- VALUE $ 1,547,899 $ 4,207,615
- COST $ 1,147,494 $ 3,248,871
BANK & FINANCE
PERCENT OF NET ASSETS 2.31% 4.82%
Advanta Corp Class B 300 $ 9,525 300 $ 9,525
Ahmanson (H F) & Co 130 6,598 731 37,098
Allied Irish Banks PLC ADR
(Ireland) 1,560 78,390 2,870 144,217
American Express Corp 741 57,613 3,760 292,340
American Financial Group Inc 304 13,148 390 16,868
Amsouth Bancorp 700 29,444 850 35,753
Associates First Capital
Corp 600 34,838 700 40,644
Banc One Corp 415 22,254 4,242 227,477
Banco Bilbao Vizcaya ADR
(Spain) 2,250 60,187 4,800 128,400
Banco Central
Hispanoamericano SA ADR
(Spain) 1,100 20,213 2,000 36,750
Banco Santander SA ADR
(Spain) 2,100 58,275 4,200 116,550
</TABLE>
32
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,198 $ 69,237 1,759 $ 55,409 3,560 $ 112,140
500 22,906 800 36,650 1,500 68,719
0 -- 400 8,375 800 16,750
465 14,241 335 10,259 500 15,313
1,339 33,224 1,107 27,467 2,172 53,893
1,386 65,662 1,172 55,523 2,300 108,962
1,109 29,389 864 22,896 1,463 38,770
72 1,656 49 1,127 0 --
454 12,372 331 9,020 510 13,898
2,337 121,816 1,852 96,535 3,815 198,857
------------ ------------ ------------
$ 1,232,284 $ 1,012,421 $ 2,061,856
$ 965,020 $ 776,865 $ 1,726,861
3.07% 3.83% 4.23%
12,652 $ 444,402 10,063 $ 353,463 20,231 $ 710,614
64,300 4,802,405 54,300 4,055,531 95,500 7,132,656
31,570 493,281 26,675 416,797 46,910 732,969
21,967 944,581 17,387 747,641 35,246 1,515,578
13,404 841,101 10,608 665,652 21,499 1,349,062
1,759 95,206 1,244 67,332 1,990 107,709
0 -- 0 -- 500 17,281
7,625 461,313 5,875 355,438 12,300 744,150
16,950 216,113 12,950 165,113 27,250 347,438
10,825 571,019 8,350 440,463 17,550 925,763
------------ ------------ ------------
$ 8,869,421 $ 7,267,430 $ 13,583,220
$ 6,799,389 $ 5,668,308 $ 11,042,980
6.92% 8.21% 9.67%
500 $ 15,875 400 $ 12,700 700 $ 22,225
1,808 91,756 1,515 76,886 3,066 155,599
5,542 278,486 4,462 224,216 8,145 409,286
8,431 655,510 6,707 521,469 14,933 1,161,041
813 35,162 508 21,971 780 33,735
1,800 75,713 1,350 56,784 2,050 86,228
1,600 92,900 1,100 63,869 1,700 98,706
10,590 567,889 8,379 449,324 16,915 907,067
9,600 256,800 8,100 216,675 14,300 382,525
3,950 72,581 3,300 60,638 5,700 104,738
8,400 233,100 7,050 195,638 12,150 337,163
</TABLE>
33
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Bank of New York Inc 278 $ 12,406 2,841 $ 126,780
BankAmerica Corp 542 35,670 5,218 343,410
BankBoston Corp 150 12,469 1,040 86,450
Bankers Trust Corp 90 9,338 560 58,100
Barclays PLC ADR (UK) 1,650 150,563 3,100 282,875
Barnett Banks Inc 140 9,538 1,444 98,373
BB&T Corp 1,000 51,750 1,600 82,800
Beacon Properties Corp 0 -- 400 14,400
Bear Stearns Co Inc 999 39,539 1,154 45,665
Beneficial Corp 42 3,006 430 30,772
Cali Realty Corp 0 -- 400 14,900
Capital One Financial Corp 0 -- 100 3,850
Carramerica Realty Corp 0 -- 400 11,925
Central Fidelity Banks Inc 525 20,541 745 29,148
Charter One Financial Inc 430 23,381 525 28,547
Chase Manhattan Bank 511 56,817 3,454 384,042
Citicorp 377 48,115 3,423 436,860
Comdisco Inc 624 16,965 668 18,148
Comerica Inc 39 2,762 743 52,614
Commerce Bancshares Inc 340 18,317 440 23,705
Compass Bancshares Inc 400 14,250 600 21,375
ContiFinancial Corp+ 0 -- 100 3,288
CoreStates Financial Corp 204 12,546 1,483 91,204
Countrywide Credit
Industries Inc 1,100 37,056 800 26,950
Credit Acceptance Corp+ 200 2,825 200 2,825
Crescent Operating Inc+ 0 -- 80 1,290
Crescent Real Estate Co 0 -- 1,000 31,625
Crestar Financial Corp 1,004 44,866 1,240 55,413
Deposit Guaranty Corp 0 -- 400 12,825
Dime Bancorp Inc 800 15,450 1,200 23,175
Donaldson Lufkin & Jenrette
In 0 -- 100 5,938
Duke Realty Investments 0 -- 800 16,750
Edwards A G & Sons Inc 455 18,086 620 24,645
Equifax Inc 1,410 41,507 1,400 41,213
Federal Home Loan Mortgage
Corp 564 18,365 5,140 167,371
Federal National Mortgage
Assoc 1,416 62,304 8,385 368,940
Fifth Third Bancorp 266 15,561 1,317 77,045
Finova Group Inc 200 16,913 300 25,369
First American Corp 600 25,350 700 29,575
First Chicago NBD Corp 234 16,790 2,321 166,532
First Commerce Corp 300 16,013 400 21,350
First Empire State Corp 0 -- 100 36,550
First Hawaiian Inc 200 7,375 300 11,063
First of America Bank Corp 821 42,256 1,015 52,247
</TABLE>
34
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
7,163 $ 319,649 5,651 $ 252,176 11,387 $ 508,145
13,032 857,669 10,362 681,949 20,894 1,375,086
2,697 224,188 2,105 174,978 4,354 361,926
1,399 145,146 1,155 119,831 2,325 241,219
6,975 636,469 5,650 515,563 9,750 889,687
3,614 246,204 2,943 200,492 5,959 405,957
2,300 119,025 1,900 98,325 3,580 185,265
0 -- 0 -- 1,100 39,600
2,709 107,175 1,869 73,942 2,883 114,073
1,031 73,781 798 57,107 1,577 112,854
0 -- 0 -- 800 29,800
900 34,650 100 3,850 200 7,700
0 -- 0 -- 1,100 32,794
1,050 41,081 945 36,973 1,507 58,961
1,050 57,094 735 39,966 1,260 68,513
7,639 849,361 6,092 677,354 13,588 1,510,816
8,570 1,093,746 6,722 857,895 13,766 1,756,886
1,562 42,453 954 25,937 1,463 39,775
1,972 139,642 1,545 109,405 3,185 225,538
866 46,656 651 35,073 997 53,713
750 26,719 750 26,719 1,350 48,094
0 -- 0 -- 200 6,575
3,785 232,777 3,068 188,682 6,105 375,458
1,900 64,006 1,500 50,531 3,100 104,431
0 -- 200 2,825 500 7,063
0 -- 0 -- 200 3,225
0 -- 0 -- 2,200 69,575
1,970 88,034 1,830 81,778 2,870 128,253
0 -- 0 -- 900 28,856
2,400 46,350 1,900 36,694 2,800 54,075
900 53,438 200 11,875 300 17,813
0 -- 0 -- 1,600 33,500
1,017 40,426 977 38,836 1,525 60,619
3,642 107,211 2,672 78,657 4,840 142,477
12,748 415,107 10,131 329,891 20,451 665,936
18,859 829,796 15,133 665,852 33,496 1,473,824
2,922 170,937 2,302 134,667 5,141 300,749
600 50,738 500 42,281 700 59,194
1,400 59,150 1,000 42,250 1,600 67,600
5,747 412,347 4,541 325,817 9,223 661,750
800 42,700 500 26,688 900 48,038
100 36,550 100 36,550 100 36,550
300 11,063 400 14,750 600 22,125
2,113 108,820 1,303 67,105 2,287 117,781
</TABLE>
35
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
First Security Corp 861 $ 24,323 1,170 $ 33,053
First Tennessee National
Corp 508 27,051 740 39,405
First Union Corp 426 20,475 4,215 202,605
First USA Paymentech Inc+ 0 -- 100 3,038
First Virginia Banks Inc 359 24,457 380 25,888
Firstar Corp 1,200 40,425 1,400 47,163
Firstmerit Corp 300 14,063 300 14,063
Fleet Financial Group Inc 155 9,988 1,964 126,555
Franklin Resources Inc 694 53,698 950 73,506
GATX Corp 223 13,951 270 16,892
Golden State Bancorp+ 0 -- 600 17,325
Golden West Financial 62 5,103 376 30,949
Green Tree Financial Inc 150 6,591 1,042 45,783
Greenpoint Financial Corp 400 24,625 400 24,625
GTECH Holdings Corp+ 400 12,025 400 12,025
Hibernia Corp Class A 1,000 15,188 1,500 22,781
Highwood Properties Inc 0 -- 400 13,000
Household International Inc 41 4,548 815 90,414
Huntington Bancshares Inc 1,446 46,814 1,556 50,375
John Nuveen & Co Inc Class A 0 -- 100 3,044
Keycorp 173 10,488 1,603 97,182
Lehman Brothers Holdings 900 39,488 1,100 48,263
MBNA Corp 415 15,952 2,720 104,531
Medaphis Corp+ 800 7,300 900 8,213
Mellon Bank Corp 226 10,876 1,866 89,801
Mercantile Bancorp 636 43,844 970 66,869
Mercantile Bankshares 454 12,769 735 20,672
Mercury Financial Corp 1,800 2,813 1,800 2,813
Merrill Lynch & Co Inc 216 13,284 2,434 149,691
MGIC Investment Corp 0 -- 836 42,061
Money Store Inc 400 11,400 400 11,400
Morgan (J P) & Co Inc 139 14,908 1,408 151,008
National Australia Bank Ltd
ADR (Australia) 1,750 121,406 3,700 256,688
National City Corp 123 6,950 1,609 90,909
NationsBank Corp 618 36,694 5,343 317,241
Northern Trust Corp 934 49,619 1,320 70,125
Northfork Bancorp 0 -- 800 19,950
Norwest Corp 308 17,691 2,750 157,953
Old Kent Financial Corp 451 27,624 567 34,729
Old National Bancorp 330 14,438 221 9,647
Pacific Century Financial
Corp 374 18,443 460 22,684
Paine Webber Group Inc 600 23,063 800 30,750
Peoples Bank Bridgeport 0 -- 200 5,613
</TABLE>
36
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,662 $ 75,187 1,953 $ 55,172 2,925 $ 82,631
1,570 83,603 1,100 58,575 1,780 94,785
10,660 512,360 8,370 402,283 16,842 809,492
0 -- 200 6,075 400 12,150
791 53,887 561 38,218 945 64,378
2,200 74,113 2,200 74,113 3,300 111,169
500 23,438 500 23,438 800 37,500
4,827 311,040 3,876 249,760 7,662 493,720
2,044 158,155 1,170 90,490 2,048 158,426
302 18,894 317 19,832 610 38,163
0 -- 0 -- 1,300 37,538
1,044 85,934 856 70,460 1,714 141,084
2,479 108,921 1,939 85,195 3,956 173,817
1,100 67,719 600 36,938 1,100 67,719
500 15,031 600 18,038 900 27,056
2,900 44,044 2,200 33,413 3,300 50,119
0 -- 0 -- 800 26,000
1,966 218,103 1,602 177,722 3,191 354,002
3,835 124,158 2,336 75,628 4,751 153,814
0 -- 0 -- 0 --
4,119 249,714 3,251 197,092 6,705 406,491
2,400 105,300 1,500 65,813 2,600 114,075
6,029 231,721 4,866 187,037 10,749 413,165
1,100 10,038 1,200 10,950 2,000 18,250
4,804 231,193 3,752 180,565 7,777 374,268
1,469 101,269 1,064 73,350 2,240 154,420
1,219 34,284 1,062 29,869 1,720 48,375
2,600 4,063 2,400 3,750 4,400 6,875
6,105 375,458 4,857 298,706 9,705 596,858
2,177 109,530 1,731 87,091 3,519 177,050
700 19,950 500 14,250 800 22,800
3,392 363,792 2,701 289,682 5,423 581,617
7,325 508,172 6,250 433,594 10,950 759,656
4,058 229,277 3,228 182,382 6,616 373,804
13,466 799,544 10,654 632,581 21,652 1,285,566
2,656 141,100 1,676 89,038 2,930 155,656
0 -- 0 -- 1,700 42,394
6,916 397,238 5,485 315,045 10,969 630,032
909 55,676 793 48,571 1,560 95,550
441 19,294 331 14,470 772 33,764
757 37,330 677 33,385 1,035 51,038
2,400 92,250 1,100 42,281 1,900 73,031
0 -- 0 -- 500 14,031
</TABLE>
37
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PNC Bank Corp 306 $ 13,235 2,395 $ 103,584
Price (T Rowe) & Associates 400 22,000 500 27,500
Provident Financial Group 0 -- 200 9,475
Regions Financial Corp 970 33,223 1,500 51,375
Republic New York Corp 0 -- 367 39,292
Ryder System Inc 36 1,285 554 19,771
Sabre Group Holding Inc 0 -- 300 9,225
Salomon Inc 119 7,125 770 46,104
Schwab (Charles) Corp 178 7,554 1,424 60,431
Signet Banking Corp 500 25,906 700 36,269
SLM Holding Corp 500 67,750 700 94,850
Spieker Properties Inc 0 -- 500 18,594
Star Banc Corp 700 31,631 1,000 45,188
Starwood Lodging Trust 0 -- 500 23,094
State Street Corp 1,438 71,720 1,500 74,813
Summit Bancorp 803 47,678 1,370 81,344
SunTrust Banks Inc 130 8,125 1,581 98,812
Synovus Financial Corp 1,425 37,317 1,875 49,102
TCF Financial Corp 400 21,325 400 21,325
U.S. Bancorp 336 29,421 2,003 175,388
Union Planters Corp 600 30,750 700 35,875
UnionBanCal Corp 100 7,731 100 7,731
United Asset Management Corp 500 13,406 700 18,769
United Dominion Realty Trust 0 -- 1,000 14,125
Wachovia Corp 175 10,894 1,166 72,584
Washington Federal Inc 484 13,189 594 16,187
Washington Mutual Inc 196 11,736 1,882 112,685
Wells Fargo & Co 52 13,221 638 162,212
Wesco Financial Corp 0 -- 0 --
Westpac Banking Corp ADR
(Australia) 1,650 47,644 3,400 98,175
Wilmington Trust Corp 392 19,747 410 20,654
Zions Bancorp 400 15,500 600 23,250
------------ ------------
TOTAL BANK & FINANCE
- VALUE $ 2,760,663 $ 8,942,609
- COST $ 1,724,895 $ 5,712,957
BASIC INDUSTRIES
PERCENT OF NET ASSETS 0.55% 1.05%
ASARCO Inc 23 $ 707 284 $ 8,733
Avery-Dennison Corp 96 3,942 822 33,753
Baker Hughes Inc 121 5,127 1,233 52,248
Bemis Co 40 1,758 427 18,761
Boise Cascade Corp 67 2,651 379 14,994
Boise Cascade Office
Products+ 0 -- 100 2,106
</TABLE>
38
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
5,913 $ 255,737 4,670 $ 201,978 9,500 $ 410,875
1,000 55,000 800 44,000 1,200 66,000
0 -- 0 -- 500 23,688
2,838 97,202 1,928 66,034 3,380 115,765
1,036 110,917 763 81,689 1,616 173,013
1,390 49,606 1,147 40,934 2,342 83,580
2,200 67,650 300 9,225 600 18,450
1,987 118,972 1,573 94,183 3,213 192,378
3,194 135,545 2,504 106,264 5,603 237,777
1,300 67,356 1,000 51,813 1,500 77,719
1,400 189,700 900 121,950 1,500 203,250
0 -- 0 -- 1,000 37,188
2,100 94,894 1,500 67,781 2,300 103,931
0 -- 0 -- 1,000 46,188
3,770 188,029 2,900 144,638 5,580 278,303
2,039 121,066 1,514 89,894 2,679 159,066
4,038 252,375 3,223 201,438 6,616 413,500
3,825 100,167 2,775 72,670 4,375 114,570
800 42,650 500 26,656 1,100 58,644
4,547 398,147 3,480 304,718 6,917 605,670
1,000 51,250 1,100 56,375 1,700 87,125
500 38,656 200 15,463 300 23,194
1,400 37,538 1,000 26,813 1,700 45,581
0 -- 0 -- 2,200 31,075
2,964 184,509 2,324 144,669 4,893 304,589
726 19,784 805 21,936 1,252 34,117
4,597 275,245 3,666 219,502 7,320 438,285
1,687 428,920 1,262 320,863 2,639 670,966
100 27,506 0 -- 0 --
6,900 199,238 5,800 167,475 10,100 291,638
649 32,693 504 25,389 875 44,078
1,200 46,500 800 31,000 1,600 62,000
------------ ------------ ------------
$ 19,983,562 $ 15,563,636 $ 31,064,714
$ 12,008,050 $ 9,479,878 $ 22,587,105
1.51% 1.86% 2.14%
833 $ 25,615 591 $ 18,173 1,306 $ 40,160
1,818 74,652 1,484 60,937 3,315 136,122
3,028 128,312 2,397 101,573 4,902 207,722
1,022 44,904 754 33,129 1,553 68,235
892 35,290 757 29,949 1,437 56,851
800 16,850 0 -- 200 4,213
</TABLE>
39
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Bowater Inc 395 $ 20,219 410 $ 20,987
Broken Hill Propriety Co Ltd
ADR (Australia) 3,680 92,460 7,460 187,432
Champion International Corp 38 2,249 661 39,123
Chesapeake Corp 256 8,800 200 6,875
Consolidated Papers Inc 286 16,677 280 16,328
Crown Vantage Inc+ 21 184 48 420
Cyprus Amax Minerals 36 909 660 16,665
Deltic Timber Corp 141 4,167 166 4,899
Dover Corp 150 10,359 927 64,021
Echo Bay Mines Ltd 121 613 1,208 6,116
Fort James Corp 568 23,856 1,166 48,972
Georgia-Pacific Corp 33 3,011 654 59,678
Glatfelter (P H) Co 486 10,054 280 5,793
Harnischfeger Industries Inc 8 321 384 15,408
Homestake Mining Co 116 1,624 1,125 15,750
Ikon Office Solutions Inc 188 4,888 972 25,272
Inco Ltd 129 3,491 1,199 32,448
Longview Fibre Co 554 11,599 540 11,306
Louisiana-Pacific Corp 118 2,611 796 17,611
LTB Corp 900 11,700 1,300 16,900
Mark IV Industries Inc 547 13,745 532 13,375
Mead Corp 54 3,831 366 25,963
Minnesota Mining &
Manufacturing Co 667 59,947 3,289 295,599
NACCO Industries Inc Class A 16 1,380 43 3,709
Newmont Gold Co 100 4,325 200 8,650
Newmont Mining Corp 157 6,643 1,270 53,737
Potlatch Corp 0 -- 233 10,878
Rayonier Inc 356 17,377 350 17,084
Rio Tinto PLC ADR
(Australia) 2,400 154,200 5,100 327,675
Sealed Air Corp+ 400 20,750 400 20,750
Smith International Inc 314 22,844 400 29,100
St Joe Paper Corp 100 8,563 100 8,563
Stone Container Corp 83 1,432 807 13,921
U.S. Industries Inc 395 15,010 505 19,190
Union Camp Corp 72 4,271 514 30,487
Unisource Worldwide Inc 94 1,704 865 15,678
Varco International Inc 292 11,607 0 --
Varian Associates Inc 277 15,806 390 22,254
Watts Industries Inc Class A 308 7,508 0 --
Wausau Paper Mills Co 392 8,575 316 6,913
Westinghouse Electric Corp 490 12,605 4,689 120,729
Westvaco Corp 102 3,455 788 26,694
Weyerhauser Co 160 9,240 1,434 82,814
</TABLE>
40
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
652 $ 33,374 607 $ 31,071 975 $ 49,908
16,490 414,311 13,920 349,740 24,480 615,060
1,735 102,690 1,374 81,324 2,867 169,691
361 12,409 266 9,144 650 22,344
770 44,901 490 28,573 770 44,901
104 910 81 709 132 1,155
1,762 44,490 1,377 34,769 2,791 70,473
308 9,097 199 5,887 334 9,880
2,014 139,092 1,578 108,981 3,577 247,037
2,497 12,641 1,834 9,285 3,052 15,451
2,474 103,908 2,084 87,528 3,973 166,866
1,696 154,760 1,371 125,104 2,757 251,576
769 15,909 489 10,116 770 15,929
947 37,998 718 28,810 1,504 60,348
2,714 37,996 2,191 30,674 4,402 61,628
2,438 63,388 1,930 50,180 4,212 109,512
3,038 82,216 2,431 65,789 4,978 134,717
890 18,634 575 12,039 1,330 27,847
2,011 44,493 1,595 35,289 3,248 71,862
1,900 24,700 1,700 22,100 2,700 35,100
870 21,870 762 19,153 1,174 29,488
1,003 71,150 733 51,997 1,576 111,798
7,354 660,941 5,932 533,139 13,110 1,178,261
144 12,420 143 12,334 157 13,541
200 8,650 200 8,650 300 12,975
2,748 116,275 2,182 92,326 5,021 212,451
511 23,857 411 19,189 820 38,284
462 22,551 526 25,675 819 39,977
10,225 656,956 8,650 555,763 15,150 973,388
606 31,436 636 32,993 1,000 51,875
597 43,432 627 45,614 900 65,475
200 17,125 200 17,125 200 17,125
1,815 31,309 1,408 24,288 2,902 50,060
950 36,100 760 28,880 1,235 46,930
1,304 77,344 1,001 59,372 2,095 124,260
1,174 21,279 1,092 19,792 1,674 30,341
524 20,829 374 14,867 0 --
735 41,941 490 27,961 765 43,653
464 11,310 334 8,141 0 --
572 12,513 407 8,903 371 8,116
11,710 301,545 9,305 239,604 18,872 485,948
1,900 64,363 1,533 51,930 3,118 105,622
3,599 207,842 2,898 167,360 5,786 334,141
</TABLE>
41
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Whitman Corp 60 $ 1,470 833 $ 20,409
Willamette Industries Inc 7 558 437 34,851
------------ ------------
TOTAL BASIC INDUSTRIES
- VALUE $ 650,823 $ 1,951,622
- COST $ 529,859 $ 1,632,707
BEVERAGES
PERCENT OF NET ASSETS 0.47% 1.32%
Anheuser-Busch Inc 632 $ 26,939 3,892 $ 165,896
Coca-Cola Co 3,632 208,159 19,649 1,126,132
Coca-Cola Enterprises Co 1,636 44,990 2,330 64,075
Coors (Adolph) Co Class B 67 2,471 327 12,058
Energy Group PLC ADR (UK) 1,068 43,188 1,987 80,349
Hanson PLC ADR (UK) 1,068 25,632 1,990 47,760
Kirin Brewery Co ADR (Japan) 1,400 115,150 5,150 423,587
Pepsico Inc 2,198 79,128 12,105 435,780
Seagrams Co Ltd 328 11,460 2,719 94,995
------------ ------------
TOTAL BEVERAGES
- VALUE $ 557,117 $ 2,450,632
- COST $ 557,638 $ 2,155,301
BIOTECHNOLOGY
PERCENT OF NET ASSETS 0.05% 0.04%
Agouron Pharmaceuticals Inc. 0 $ -- 200 $ 8,800
Biogen Inc 718 28,271 860 33,863
Chiron Corp+ 896 20,048 892 19,959
Genzyme Corp--General
Division 326 9,169 420 11,813
Genzyme Corp--Tissue Repair+ 45 481 13 135
Quest Diagnostics Inc+ 46 860 240 4,485
------------ ------------
TOTAL BIOTECHNOLOGY
- VALUE $ 58,829 $ 79,055
- COST $ 39,899 $ 68,405
BROADCASTING
PERCENT OF NET ASSETS 0.08% 0.16%
Clear Channel Communications
Inc 400 $ 27,175 700 $ 47,556
HSN Inc+ 461 15,221 365 12,029
Kingworld Productions 0 -- 274 10,892
LIN Television Corp+ 200 9,488 200 9,488
TCA Cable TV Inc 266 10,108 0 --
TCI Satellite Entertainment
Class A+ 107 739 543 3,750
Tele-Communications Inc
Class A+ 1,012 17,710 5,282 92,435
Tele-Communications
International Inc Class A+ 300 4,819 200 3,213
</TABLE>
42
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,948 $ 47,726 1,420 $ 34,790 3,310 $ 81,095
975 77,756 789 62,923 1,703 135,814
------------ ------------ ------------
$ 4,362,060 $ 3,533,642 $ 6,885,206
$ 3,667,176 $ 2,948,216 $ 6,008,782
1.87% 2.24% 2.85%
8,844 $ 376,976 7,214 $ 307,497 15,660 $ 667,507
43,963 2,519,628 35,231 2,019,177 78,262 4,485,391
6,564 180,510 3,144 86,460 5,565 153,038
701 25,849 529 19,507 1,102 40,636
3,871 156,534 3,056 123,577 5,156 208,496
3,872 92,925 3,257 78,168 5,657 135,768
10,200 838,950 7,900 649,775 16,450 1,353,013
27,211 979,596 21,770 783,720 48,325 1,739,700
6,813 238,029 5,374 187,754 10,962 382,985
------------ ------------ ------------
$ 5,408,997 $ 4,255,635 $ 9,166,534
$ 4,668,648 $ 3,556,502 $ 8,138,110
0.05% 0.05% 0.06%
0 $ -- 0 $ -- 600 $ 26,400
1,582 62,291 1,222 48,116 1,890 74,419
2,424 54,237 1,300 29,088 2,052 45,914
734 20,644 544 15,300 700 19,688
71 763 52 562 54 581
515 9,624 389 7,269 825 15,417
------------ ------------ ------------
$ 147,559 $ 100,335 $ 182,419
$ 115,823 $ 70,755 $ 152,150
0.23% 0.28% 0.34%
600 $ 40,763 800 $ 54,350 1,500 $ 101,906
650 21,443 472 15,578 1,306 43,098
662 26,315 557 22,141 956 38,001
300 14,231 200 9,488 300 14,231
371 14,098 276 10,488 0 --
1,150 7,942 883 6,098 1,866 12,887
12,176 213,080 9,755 170,713 21,394 374,395
1,500 24,094 200 3,213 600 9,638
</TABLE>
43
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Tribune Co 136 $ 6,724 914 $ 45,186
Viacom Inc Class B+ 272 8,058 2,560 75,840
------------ ------------
TOTAL BROADCASTING
- VALUE $ 100,042 $ 300,389
- COST $ 75,160 $ 285,687
BUILDING MATERIALS &
SERVICES
PERCENT OF NET ASSETS 0.23% 0.30%
AMBAC Inc 300 $ 24,244 300 $ 24,244
American Standard Co Inc+ 500 23,500 500 23,500
Cooper Industries Inc 128 6,824 831 44,303
Corning Inc 311 16,444 1,845 97,554
Cytec Industries Inc+ 300 14,644 400 19,525
Danaher Corp 200 10,713 380 20,354
Diebold Inc 565 26,202 735 34,086
Fastenal Co 300 17,288 300 17,287
Kennametal Inc 300 14,044 300 14,044
Keystone International Inc 383 14,434 300 11,306
Lafarge Corp 300 9,750 400 13,000
Lawson Products Inc 0 -- 0 --
Martin Marietta Inc 0 -- 100 3,494
Owens Corning Fiberglass
Corp 26 1,055 389 15,779
Owens Illinois Inc+ 700 24,369 1,100 38,294
PPG Industries Inc 98 6,174 1,288 81,144
Snap-On Inc 36 1,512 452 18,984
Southdown Inc 175 8,214 0 --
Stanley Works 108 4,597 729 31,028
USG Corp+ 400 17,150 400 17,150
Valspar Corp 400 12,325 400 12,325
Vulcan Materials Co 300 26,363 300 26,363
------------ ------------
TOTAL BUILDING MATERIALS &
SERVICES
- VALUE $ 279,846 $ 563,764
- COST $ 166,202 $ 368,398
BUSINESS SERVICES
PERCENT OF NET ASSETS 0.12% 0.20%
Accustaff Inc+ 0 $ -- 800 $ 21,250
APAC Teleservices Inc+ 100 1,650 200 3,300
Apollo Group Inc+ 0 -- 200 7,138
Concord EFS Inc+ 0 -- 600 16,650
Ecolab Inc 60 2,704 476 21,450
Intl Technology Corp 0 -- 0 --
Kelly Services Inc Class A 406 13,601 420 14,070
</TABLE>
44
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,276 $ 112,520 1,807 $ 89,334 3,611 $ 178,519
6,446 190,963 5,185 153,606 10,640 315,210
------------ ------------ ------------
$ 665,449 $ 535,009 $ 1,087,885
$ 663,863 $ 521,153 $ 1,039,515
0.44% 0.50% 0.58%
900 $ 72,731 500 $ 40,406 800 $ 64,650
1,300 61,100 800 37,600 1,300 61,100
2,215 118,087 1,762 93,937 3,550 189,259
4,206 222,392 3,312 175,122 7,238 382,709
900 43,931 600 29,288 800 39,050
962 51,527 522 27,960 780 41,779
1,509 69,980 992 45,981 1,556 72,136
400 23,050 400 23,050 700 40,338
411 19,240 300 14,044 600 28,088
641 24,158 396 14,924 965 36,368
500 16,250 300 9,750 900 29,250
197 5,319 0 -- 0 --
0 -- 0 -- 200 6,988
964 39,102 707 28,678 1,713 69,484
1,400 48,738 1,700 59,181 3,500 121,844
3,363 211,869 2,662 167,706 5,347 336,861
1,099 46,158 843 35,406 1,814 76,188
253 11,875 178 8,355 0 --
1,670 71,079 1,223 52,054 2,834 120,622
500 21,438 600 25,725 900 38,587
600 18,488 600 18,488 900 27,731
800 70,300 500 43,938 800 70,300
------------ ------------ ------------
$ 1,266,812 $ 951,593 $ 1,853,332
$ 833,862 $ 625,805 $ 1,328,322
0.23% 0.31% 0.34%
1,600 $ 42,500 1,000 $ 26,563 1,700 $ 45,156
400 6,600 400 6,600 600 9,900
0 -- 200 7,138 400 14,275
0 -- 900 24,975 1,500 41,625
1,175 52,948 933 42,043 2,141 96,479
137 1,002 0 -- 0 --
689 23,082 619 20,736 885 29,647
</TABLE>
45
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Laidlaw Environmental
Services+ 131 $ 606 353 $ 1,633
Manpower Inc 700 29,881 800 34,150
Nielson (A C) Corp+ 73 1,661 453 10,306
Ogden Corp 101 2,342 625 14,492
Olsten Corp 691 12,956 525 9,844
Paychex Inc 685 23,461 1,027 35,175
Quintiles Transnational
Corp+ 200 15,600 300 23,400
Robert Half International
Inc+ 400 23,350 500 29,188
Rollins Inc 388 8,390 210 4,541
Security Dynamics Technology
I 0 -- 300 11,794
Teletech Holdings Inc+ 0 -- 100 1,638
Waste Management Inc 322 10,304 3,301 105,632
------------ ------------
TOTAL BUSINESS SERVICES
- VALUE $ 146,506 $ 365,651
- COST $ 118,174 $ 312,512
CHEMICALS
PERCENT OF NET ASSETS 0.76% 1.48%
Air Products & Chemicals Inc 125 $ 10,195 902 $ 73,569
Airgas Inc+ 400 7,275 700 12,731
Albemarle Corp 313 7,688 460 11,299
Arco Chemical Co 100 4,375 100 4,375
Autoliv Inc 45 1,758 1,199 46,848
Betz Labs Inc 296 19,296 340 22,164
Cabot Corp 710 19,436 740 20,258
ChemFirst Inc 35 879 84 2,111
Clorox Co 45 5,906 432 56,700
Courtaulds PLC ADR (UK) 17,200 92,450 36,100 194,038
Crompton & Knowles Corp 550 13,888 740 18,685
Dow Chemical Co 232 20,532 1,691 149,654
Du Pont (E I) De Nemours 1,592 99,202 8,944 557,322
Eastman Chemical Co 20 1,196 612 36,605
Ethyl Corp 1,031 9,279 1,010 9,090
Ferro Corp 305 11,476 250 9,406
FMC Corp+ 0 -- 322 26,746
Forest Labs Inc Class A+ 382 15,686 470 19,299
Freeport McMoRan Inc 354 12,124 363 12,433
Fuller (H B) Co 0 -- 0 --
Georgia Gulf Corp 237 6,814 360 10,350
Goodrich (B F) Co 90 3,791 403 16,976
Grace (W R) Co 39 2,684 605 41,632
Great Lakes Chemical Corp 75 3,487 413 19,205
Hanna (M A) Co 580 15,007 550 14,231
Hercules Inc 88 4,549 835 43,159
</TABLE>
46
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
769 $ 3,557 623 $ 2,881 822 $ 3,802
1,400 59,763 1,300 55,494 2,000 85,375
918 20,885 707 16,084 1,530 34,808
884 20,498 606 14,052 1,144 26,526
1,117 20,944 988 18,525 1,316 24,675
1,804 61,787 1,440 49,320 2,312 79,186
300 23,400 400 31,200 700 54,600
1,000 58,375 700 40,863 1,200 70,050
645 13,948 400 8,650 675 14,597
0 -- 400 15,725 700 27,519
0 -- 0 -- 300 4,913
8,301 265,632 6,639 212,448 13,354 427,328
------------ ------------ ------------
$ 674,921 $ 593,297 $ 1,090,461
$ 553,253 $ 500,836 $ 973,132
2.05% 2.49% 2.93%
1,973 $ 160,923 1,597 $ 130,255 3,500 $ 285,469
600 10,913 900 16,369 1,400 25,463
1,112 27,313 732 17,980 986 24,219
200 8,750 200 8,750 300 13,125
870 33,980 634 24,749 2,711 105,894
727 47,391 507 33,050 705 45,957
1,772 48,508 1,232 33,726 1,790 49,001
314 7,889 224 5,628 347 8,727
953 125,081 711 93,319 1,623 213,019
72,800 391,300 61,600 331,100 108,300 582,113
885 22,346 570 14,393 1,830 46,207
4,282 378,957 3,415 302,227 6,847 605,960
20,064 1,250,237 16,098 1,003,107 35,608 2,218,824
1,435 85,831 1,118 66,870 2,366 141,516
2,029 18,261 1,308 11,772 2,530 22,770
436 16,404 331 12,454 815 30,664
691 57,396 554 46,017 1,141 94,774
1,066 43,773 686 28,169 1,060 43,526
684 23,427 359 12,296 678 23,222
225 12,417 0 -- 0 --
745 21,419 465 13,369 640 18,400
960 40,440 828 34,880 1,671 70,391
1,263 86,910 1,174 80,786 2,386 164,187
1,140 53,010 902 41,943 1,821 84,677
967 25,021 800 20,700 1,162 30,067
1,817 93,916 1,391 71,897 3,271 169,070
</TABLE>
47
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
IMC Global Inc 618 $ 21,746 900 $ 31,669
Imperial Chemical Industries
PLC ADR (UK) 1,800 118,125 3,900 255,938
International Flavor &
Fragrances 171 8,742 897 45,859
Johns Manville Corporation 0 -- 400 4,950
Lawter International Inc 0 -- 0 --
Lubrizol Corp 529 23,177 660 28,916
Lyondell Petrochemical 476 11,543 580 14,065
Millennium Chemicals Inc 611 12,821 836 17,546
Mississippi Chemical Corp 11 239 28 608
Monsanto Co 715 31,415 4,731 207,868
Montedison Spa ADR (Italy) 2,646 16,041 6,292 38,145
Morton International Inc 132 4,389 1,015 33,749
Nalco Chemical Co 71 2,840 511 20,440
OEA Inc 0 -- 0 --
Olin Corp 470 20,915 560 24,920
Praxair Inc 211 11,275 1,225 65,461
Premark International Inc 461 13,715 706 21,003
Rhone Poulenc Rorer Class A 3,850 145,819 8,413 318,642
Rohm & Haas Co 69 6,611 509 48,769
RPM Inc 778 15,803 887 18,017
Rubbermaid Inc 156 3,900 1,265 31,625
Schulman (A) Inc 403 8,816 420 9,188
Sigma-Aldrich Corp 124 4,046 755 24,632
Terra Industries Inc 500 6,688 400 5,350
Thiokol Inc 216 17,199 0 --
Union Carbide Corp 140 7,184 918 47,105
Wellman Inc 363 8,258 280 6,370
------------ ------------
TOTAL CHEMICALS
- VALUE $ 910,280 $ 2,749,721
- COST $ 771,142 $ 2,238,464
COMPUTER SOFTWARE
PERCENT OF NET ASSETS 1.07% 2.07%
3Com Corp+ 1,875 $ 93,633 2,629 $ 131,286
Adobe Systems Inc 120 4,732 540 21,275
Altera Corp 720 38,340 1,020 54,315
America Online Inc+ 600 38,700 1,000 64,500
Anixter International Inc+ 500 8,094 500 8,094
Autodesk Inc 84 3,675 395 17,281
Automatic Data Processing 396 18,043 2,364 107,710
Bay Networks Inc+ 293 10,365 1,591 56,282
BMC Software Inc 812 50,852 1,080 67,635
Broderbund Software Inc+ 200 5,900 200 5,900
Cadence Design Systems Inc+ 782 37,194 1,112 52,889
</TABLE>
48
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,530 $ 53,837 1,270 $ 44,688 2,000 $ 70,375
7,775 510,234 6,550 429,844 11,500 754,688
1,964 100,409 1,519 77,659 3,521 180,011
1,800 22,275 300 3,713 700 8,663
677 8,886 0 -- 0 --
1,517 66,464 942 41,271 1,600 70,100
1,317 31,937 892 21,631 1,045 25,341
2,212 46,459 1,046 21,972 1,946 40,872
106 2,299 74 1,605 116 2,516
10,486 460,729 8,602 377,950 18,697 821,499
12,957 78,552 10,367 62,850 18,162 110,107
2,639 87,747 2,046 68,030 4,204 139,783
1,220 48,800 1,004 40,160 2,096 83,840
308 11,454 223 8,293 0 --
1,078 47,971 858 38,181 1,260 56,070
2,882 154,007 2,279 121,784 5,058 270,287
1,133 33,707 796 23,681 1,450 43,137
16,520 625,695 13,950 528,356 24,541 929,490
1,097 105,106 889 85,177 1,878 179,936
1,198 24,334 1,286 26,122 1,868 37,944
2,701 67,525 2,102 52,550 4,897 122,425
686 15,006 616 13,475 1,185 25,922
1,847 60,258 1,447 47,208 3,115 101,627
700 9,363 500 6,688 1,100 14,713
295 23,489 210 16,721 0 --
2,279 116,941 1,791 91,901 3,763 193,089
495 11,261 365 8,304 845 19,224
------------ ------------ ------------
$ 5,916,558 $ 4,715,620 $ 9,418,901
$ 4,773,950 $ 3,744,969 $ 7,902,476
2.78% 3.35% 4.17%
6,041 $ 301,672 4,831 $ 241,248 10,498 $ 524,244
1,266 49,829 1,015 39,964 2,292 90,248
2,036 108,417 1,296 69,012 2,280 121,410
1,200 77,400 1,300 83,850 2,300 148,350
500 8,094 700 11,331 1,200 19,425
922 40,337 624 27,300 1,544 67,550
5,284 240,752 4,245 193,413 9,399 428,242
3,561 125,970 2,814 99,545 6,387 225,940
2,132 133,517 1,552 97,194 2,380 149,047
200 5,900 200 5,900 500 14,750
1,675 79,667 1,345 63,972 2,465 117,242
</TABLE>
49
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Cambridge Technology
Partners+ 0 $ -- 400 $ 12,900
Choicepoint Inc+ 141 5,006 140 4,970
Citrix Systems Inc+ 0 -- 300 15,150
Compuserve Corp+ 0 -- 200 2,525
Computer Associates
International Inc 428 28,623 2,892 193,402
Computer Sciences Corp+ 138 10,264 633 47,079
Compuware Corp 600 37,050 800 49,400
CSK Corp ADR (Japan) 1,650 56,925 6,100 210,450
DST Systems Inc+ 200 7,238 300 10,856
Electronic Arts Inc 500 15,906 500 15,906
Electronic Data Systems Corp 2,688 101,640 3,830 144,822
First Data Corp 544 22,338 3,612 148,318
Fiserv Inc+ 417 18,765 530 23,850
Gartner Group Inc Class A 400 10,575 600 15,863
HBO & Co 700 50,138 1,000 71,625
Information Resources Inc+ 0 -- 0 --
Informix Corp+ 1,390 12,597 1,720 15,588
Intuit Inc+ 400 10,450 400 10,450
Keane Inc 0 -- 400 23,500
McAfee Associates Inc 350 19,819 450 25,481
Mentor Graphics Corp+ 600 6,975 700 8,138
Microsoft Corp 1,768 233,708 9,505 1,256,441
MobileMedia Corp+ 300 150 200 100
NEC Corp ADR (Japan) 950 53,913 3,400 192,950
Netscape Communications
Corp+ 200 7,963 500 19,906
Novell Inc+ 220 2,063 2,699 25,303
Objective Systems Integrator
Corp+ 0 -- 100 825
Oracle Systems Corp 1,265 48,209 7,704 293,715
Parametric Technology Corp+ 120 5,573 999 46,391
Peoplesoft Inc 600 33,750 800 45,000
Reynolds & Reynolds Co Class
A 746 15,013 920 18,515
Shiva Corp+ 300 4,425 300 4,425
SPS Transaction Services Inc 0 -- 100 2,131
Sterling Commerce Inc+ 677 22,383 837 27,673
Sterling Software Inc 300 10,294 400 13,725
Storage Technology Corp+ 459 23,380 635 32,345
Stratus Computer Inc+ 261 14,486 210 11,655
Structural Dynamics
Research+ 303 8,048 0 --
Sun Microsystems Inc 506 24,288 2,995 143,760
Sungard Data Systems Inc+ 400 20,850 500 26,063
Symantec Corp+ 378 9,096 500 12,031
</TABLE>
50
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0 $ -- 500 $ 16,125 800 $ 25,800
364 12,929 267 9,486 484 17,182
0 -- 400 20,200 600 30,300
400 5,050 0 -- 400 5,050
6,559 438,633 5,309 355,039 11,482 767,859
1,399 104,051 1,143 85,011 2,498 185,789
1,200 74,100 1,200 74,100 1,900 117,325
12,100 417,450 9,225 318,262 19,400 669,300
400 14,475 300 10,856 500 18,094
1,000 31,812 600 19,088 1,200 38,175
7,491 283,253 5,076 191,936 8,800 332,750
8,102 332,688 6,491 266,537 14,170 581,856
699 31,455 629 28,305 1,295 58,275
1,000 26,438 800 21,150 1,200 31,725
1,800 128,925 1,400 100,275 2,400 171,900
403 7,254 0 -- 0 --
3,118 28,257 2,138 19,376 3,480 31,538
800 20,900 500 13,063 1,000 26,125
0 -- 0 -- 900 52,875
900 50,963 675 38,222 950 53,794
852 9,905 1,000 11,625 1,600 18,600
21,215 2,804,357 17,006 2,247,981 37,822 4,999,596
400 200 300 150 700 350
6,825 387,319 5,250 297,938 11,000 624,250
1,500 59,719 800 31,850 1,745 69,470
6,594 61,819 5,067 47,503 10,448 97,950
0 -- 0 -- 200 1,650
17,433 664,634 14,016 534,360 30,917 1,178,692
2,321 107,781 1,821 84,563 4,108 190,765
1,400 78,750 1,200 67,500 1,900 106,875
2,112 42,504 1,352 27,209 2,200 44,275
600 8,850 400 5,900 600 8,850
0 -- 0 -- 200 4,263
1,254 41,460 996 32,930 1,974 65,265
600 20,588 500 17,156 800 27,450
1,284 65,404 967 49,257 1,525 77,680
366 20,313 271 15,041 750 41,625
434 11,528 319 8,473 0 --
6,657 319,536 5,377 258,096 11,862 569,376
900 46,913 700 36,488 1,000 52,125
636 15,304 761 18,312 1,500 36,094
</TABLE>
51
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Synopsys Inc+ 400 $ 13,850 500 $ 17,313
Total System Services Inc 300 7,031 300 7,031
------------ ------------
TOTAL COMPUTER SOFTWARE
- VALUE $ 1,282,310 $ 3,834,738
- COST $ 982,123 $ 2,617,451
COMPUTER SYSTEMS
PERCENT OF NET ASSETS 0.45% 1.58%
Adaptec Inc 900 $ 43,200 1,300 $ 62,400
Amdahl Corp 77 948 982 12,091
Apple Computer Inc+ 130 2,828 936 20,358
Cabletron Systems Inc 250 7,563 1,268 38,357
Ceridian Corp+ 127 4,389 599 20,703
Cisco Systems Inc+ 848 63,918 5,211 392,779
Cognizant Corp 173 7,266 1,362 57,204
Compaq Computer Corp 980 64,190 5,418 354,847
Data General Corp+ 62 2,228 323 11,608
Dell Computer Corp 340 27,901 2,648 217,302
Digital Equipment Corp 117 5,031 1,082 46,526
EMC Corp+ 308 15,804 1,946 99,854
Exabyte Corp+ 0 -- 0 --
Gateway 2000 Inc 400 15,650 400 15,650
Harris Corp 0 -- 279 24,308
Hewlett-Packard Co 830 50,889 7,463 457,575
Intergraph Corp+ 54 537 367 3,647
International Business
Machine Corp 738 74,446 7,287 735,075
Iomega Corp+ 900 23,063 1,300 33,313
Komag Inc+ 400 7,025 600 10,538
NCR Corp+ 171 6,060 1,159 41,072
Quantum Corp 1,000 35,063 1,400 49,088
Rational Software Corp 0 -- 400 6,600
Seagate Technology Inc 186 7,103 1,776 67,821
Sequent Computer Systems+ 340 9,584 0 --
Shared Medical System Corp 40 1,960 245 12,005
Silicon Graphics Inc+ 177 4,856 1,274 34,955
Sybase Inc+ 700 13,038 700 13,038
Tandem Computers Inc+ 125 4,250 830 28,220
Unisys Corp+ 73 826 1,418 16,041
Wallace Computer Services
Inc 90 2,790 100 3,100
Western Digital Corp 700 33,688 1,000 48,125
Xylan Corp+ 100 2,063 100 2,063
------------ ------------
TOTAL COMPUTER SYSTEMS
- VALUE $ 538,157 $ 2,936,263
- COST $ 357,746 $ 1,763,742
</TABLE>
52
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
900 $ 31,163 600 $ 20,775 1,200 $ 41,550
2,200 51,563 400 9,375 600 14,063
------------ ------------ ------------
$ 8,029,798 $ 6,342,242 $ 13,392,974
$ 5,227,827 $ 4,005,835 $ 9,296,736
2.37% 2.87% 3.52%
2,400 $ 115,200 1,600 $ 76,800 2,800 $ 134,400
2,176 26,792 1,775 21,855 3,666 45,138
2,319 50,438 1,837 39,955 3,848 83,694
2,737 82,794 2,285 69,121 4,985 150,796
1,436 49,632 1,113 38,468 2,611 90,243
11,798 889,274 9,420 710,032 20,910 1,576,091
3,005 126,210 2,348 98,616 5,409 227,178
12,125 794,188 9,735 637,643 21,668 1,419,221
752 27,025 637 22,892 1,350 48,516
5,970 489,913 4,774 391,766 10,588 868,878
2,775 119,325 2,277 97,911 4,566 196,338
4,496 230,701 3,620 185,751 7,945 407,678
340 3,995 0 -- 0 --
700 27,388 600 23,475 900 35,213
695 60,552 588 51,230 1,152 100,368
18,775 1,151,142 14,856 910,859 30,106 1,845,874
861 8,556 586 5,823 992 9,858
18,322 1,848,231 14,544 1,467,126 29,479 2,973,694
2,200 56,375 1,900 48,688 2,800 71,750
1,100 19,319 800 14,050 1,100 19,319
1,781 63,114 1,664 58,968 2,625 93,034
1,580 55,399 1,570 55,048 3,100 108,694
0 -- 0 -- 1,000 16,500
4,467 170,584 3,563 136,062 7,393 282,320
471 13,276 341 9,612 0 --
437 21,413 346 16,954 767 37,583
3,261 89,474 2,552 70,020 5,290 145,144
1,400 26,075 900 16,763 1,600 29,800
2,187 74,358 1,707 58,038 3,471 118,014
3,335 37,727 2,575 29,130 5,124 57,965
1,100 34,100 210 6,510 300 9,300
1,800 86,625 1,600 77,000 2,300 110,688
0 -- 100 2,063 200 4,125
------------ ------------ ------------
$ 6,849,195 $ 5,448,229 $ 11,317,414
$ 4,010,777 $ 3,089,554 $ 7,331,334
</TABLE>
53
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
CONTAINER & PACKAGING
PERCENT OF NET ASSETS 0.07% 0.19%
Ball Corp 52 $ 1,710 184 $ 6,049
Crown Cork & Seal Co 80 4,070 915 46,551
First Brands Corp 486 12,120 480 11,970
International Paper Co 209 11,025 2,188 115,417
Jefferson Smurfit Corp+ 700 13,606 800 15,550
Sonoco Products 688 22,403 977 31,814
Temple-Inland Inc 47 3,032 461 29,735
Tenneco Inc 171 8,304 1,267 61,529
Tupperware Corp 61 2,047 475 15,942
U.S. Office Products Co+ 0 -- 600 19,650
------------ ------------
TOTAL CONTAINER & PACKAGING
- VALUE $ 78,317 $ 354,207
- COST $ 60,822 $ 296,781
ELECTRICAL EQUIPMENT
PERCENT OF NET ASSETS 0.44% 1.31%
Aeroquip-Vickers Inc 50 $ 2,794 232 $ 12,963
Arrow Electronics Inc+ 393 24,145 496 30,473
Avnet Inc 330 22,832 450 31,134
FORE Systems Inc+ 400 8,175 500 10,219
General Electric Co 4,644 290,250 25,997 1,624,812
Grainger (W W) Inc 39 3,464 426 37,834
Handleman Co+ 59 350 132 784
Hitachi Ltd ADR (Japan) 400 37,300 1,500 139,875
Hubbell Inc Class B 532 24,406 566 25,965
Masco Corp 149 6,621 1,214 53,947
Maxim Integrated Products
Inc+ 500 34,563 700 48,388
Motorola Inc 501 36,761 4,349 319,108
National Service Industries
Inc 37 1,637 323 14,293
Raychem Corp 25 2,327 386 35,922
Symbol Technologies Inc 390 14,430 315 11,655
Thomas & Betts Corp 66 3,696 430 24,080
TriMas Corp 200 5,725 200 5,725
------------ ------------
TOTAL ELECTRICAL EQUIPMENT
- VALUE $ 519,476 $ 2,427,177
- COST $ 404,320 $ 1,674,803
ELECTRONICS
PERCENT OF NET ASSETS 1.15% 2.40%
Advanced Micro Devices+ 94 $ 3,519 1,025 $ 38,373
American Power Conversion+ 600 15,750 980 25,725
AMP Inc 180 9,000 1,628 81,400
Analog Devices Inc 1,301 43,107 1,827 60,508
</TABLE>
54
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.28% 0.34% 0.40%
612 $ 20,120 417 $ 13,709 658 $ 21,632
2,401 122,151 1,863 94,780 3,741 190,323
694 17,307 704 17,556 1,060 26,434
5,584 294,556 4,417 232,997 8,901 469,528
1,400 27,213 900 17,494 1,500 29,156
2,100 68,381 1,622 52,816 2,355 76,685
983 63,403 818 52,761 1,647 106,232
3,182 154,526 2,525 122,620 5,182 251,651
1,074 36,046 865 29,032 2,008 67,394
0 -- 0 -- 1,200 39,300
------------ ------------ ------------
$ 803,703 $ 633,765 $ 1,278,335
$ 664,719 $ 524,573 $ 1,140,934
1.88% 2.29% 2.89%
523 $ 29,223 413 $ 23,076 953 $ 53,249
999 61,376 710 43,621 1,075 66,045
1,014 70,156 659 45,595 1,015 70,225
600 12,263 700 14,306 1,200 24,525
58,212 3,638,249 46,648 2,915,500 103,524 6,470,250
905 80,375 749 66,521 1,566 139,080
467 2,773 307 1,823 521 3,093
3,025 282,081 2,325 216,806 4,900 456,925
1,008 46,242 934 42,847 1,402 64,317
2,998 133,224 2,399 106,606 4,869 216,366
1,400 96,775 1,000 69,125 1,700 117,513
10,959 804,117 8,681 636,968 17,588 1,290,520
826 36,551 642 28,409 1,150 50,888
768 71,472 602 56,024 1,414 131,590
585 21,645 555 20,535 825 30,525
956 53,536 834 46,704 1,671 93,576
0 -- 200 5,725 500 14,313
------------ ------------ ------------
$ 5,440,058 $ 4,340,191 $ 9,293,000
$ 3,763,447 $ 2,934,369 $ 6,840,816
3.29% 3.95% 4.82%
2,635 $ 98,648 2,021 $ 75,661 4,269 $ 159,821
1,494 39,218 1,309 34,361 2,060 54,075
4,049 202,450 3,213 160,650 6,626 331,300
3,439 113,906 2,361 78,219 4,129 136,784
</TABLE>
55
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Applied Materials Inc+ 250 $ 23,594 1,446 $ 136,466
Atmel Corp+ 662 23,418 960 33,960
Beckman Instruments Inc 294 13,836 350 16,472
C-Cube Microsystems Inc+ 100 3,000 300 9,000
Canon Inc ADR (Japan) 500 69,563 1,850 257,381
Cirrus Logic Inc+ 634 10,897 780 13,406
Commscope Inc+ 50 862 346 5,969
Cypress Semiconductor Corp+ 800 14,200 1,040 18,460
EG&G Inc 23 489 334 7,098
Electronics for Imaging Inc 400 21,400 600 32,100
Emerson Electric Co 336 18,375 3,290 179,922
Fuji Photo Film Co Ltd ADR
(Japan) 1,200 45,900 4,900 187,425
General Semiconductor Inc 38 530 261 3,680
General Signal Corp 33 1,431 420 18,218
Honeywell Inc 179 12,373 985 68,088
Imation Corp+ 576 15,588 516 13,964
Input/Output Inc+ 500 10,500 500 10,500
Integrated Device Technology
Inc+ 700 9,538 800 10,900
Intel Corp 2,332 214,836 13,010 1,198,545
International Rectifier
Corp+ 500 11,406 500 11,406
International Specialty
Produc+ 0 -- 200 2,863
Johnson Controls Inc 92 4,387 664 31,665
KLA Instruments Corp+ 400 28,350 800 56,700
Kyocera Corp ADR (Japan) 250 32,375 800 103,600
Lam Research Corp+ 300 16,950 400 22,600
Lexmark International Group
Class A 0 -- 200 7,000
Linear Technology Corp 586 38,420 820 53,761
Litton Industries Inc+ 301 15,012 390 19,451
LSI Logic Corp+ 122 3,927 1,103 35,503
Macromedia Inc+ 400 3,825 400 3,825
Matsushita Electric
Industries Co 250 45,750 750 137,250
MEMC Electronic Materials
Inc+ 300 8,700 300 8,700
Microchip Technology Inc 600 24,263 600 24,263
Micron Electronics Inc+ 0 -- 200 3,263
Micron Technology Inc+ 126 5,615 1,523 67,869
Molex Inc 453 17,724 397 15,533
Molex Inc Class A 550 20,075 643 23,470
National Semiconductor+ 60 2,055 1,046 35,825
Nextlevel Systems Inc+ 150 3,009 142 2,849
Novellus System Inc+ 200 22,925 200 22,925
Perkin-Elmer Corp 27 1,998 387 28,638
Philips Electronics NV
(Netherlands) 1,700 121,763 3,500 250,688
Pioneer Electronics Corp 1,750 36,859 6,750 142,172
Pitney Bowes Inc 152 11,609 1,161 88,671
</TABLE>
56
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
3,173 $ 299,452 2,629 $ 248,112 5,681 $ 536,144
1,866 66,010 1,288 45,563 2,126 75,207
450 21,178 505 23,767 780 36,709
300 9,000 400 12,000 700 21,000
3,775 525,197 2,900 403,463 6,050 841,706
1,496 25,713 1,066 18,322 1,510 25,953
791 13,645 612 10,557 1,550 26,745
1,364 24,211 1,424 25,276 2,070 36,743
827 17,574 690 14,663 996 21,165
1,000 53,500 800 42,800 1,300 69,550
8,250 451,172 6,548 358,094 13,144 718,812
9,800 374,850 7,550 288,788 15,800 604,350
595 8,397 460 6,490 1,164 16,442
910 39,471 763 33,095 1,521 65,973
2,261 156,292 1,861 128,642 4,076 281,754
702 18,998 731 19,783 1,117 30,229
1,000 21,000 700 14,700 1,100 23,100
1,700 23,163 800 10,900 2,100 28,612
29,064 2,677,520 23,356 2,151,672 51,712 4,763,968
1,000 22,813 700 15,969 1,100 25,094
1,300 18,606 300 4,294 500 7,156
1,497 71,388 1,175 56,033 2,522 120,268
1,000 70,875 900 63,788 2,000 141,750
1,650 213,675 1,275 165,112 2,700 349,650
500 28,250 500 28,250 800 45,200
1,000 35,000 300 10,500 700 24,500
1,700 111,456 1,110 72,774 1,850 121,291
808 40,299 503 25,087 879 43,840
2,600 83,688 1,939 62,412 4,541 146,163
700 6,694 500 4,781 900 8,606
1,450 265,350 1,100 201,300 2,400 439,200
400 11,600 400 11,600 500 14,500
600 24,263 750 30,328 1,300 52,569
1,600 26,100 300 4,894 500 8,156
3,901 173,838 3,085 137,475 6,154 274,238
672 26,292 575 22,497 1,027 40,181
1,156 42,194 1,031 37,632 1,581 57,706
2,632 90,146 2,036 69,733 4,215 144,364
2,378 47,709 1,838 36,875 4,656 93,411
400 45,850 200 22,925 400 45,850
745 55,130 612 45,288 1,420 105,080
7,075 506,747 6,050 433,331 10,550 755,644
13,175 277,498 10,175 214,311 21,250 447,578
2,648 202,241 2,078 158,707 4,716 360,185
</TABLE>
57
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Pixar Inc+ 0 $ -- 100 $ 2,006
Policy Management Systems
Corp+ 248 14,896 170 10,211
Premier Farnell PLC ADR (UK) 626 10,564 1,084 18,293
Read-Rite Corp+ 400 11,475 500 14,344
SCI Systems Inc 400 15,725 600 23,588
Sensormatic Electronics 535 6,988 870 11,364
Solectron Corp 800 33,500 1,000 41,875
SONY Corp ADR (Japan) 600 52,875 2,250 198,281
Tektronix Inc 0 -- 236 13,113
Teradyne Inc+ 576 32,076 920 51,233
Texas Instruments Inc 322 36,587 1,467 166,688
Thermo Instrument Systems
Inc+ 200 7,988 225 8,986
Vishay Intertechnology Inc 441 11,769 546 14,571
VLSI Technology Inc+ 500 16,500 400 13,200
Xerox Corp 471 35,561 2,603 196,527
Xilinx Inc+ 647 30,733 800 38,000
Zenith Electronics Corp+ 44 457 89 923
------------ ------------
TOTAL ELECTRONICS
- VALUE $ 1,376,397 $ 4,451,253
- COST $ 968,757 $ 2,789,219
ENERGY & RELATED
PERCENT OF NET ASSETS 1.92% 4.10%
AES Corp 1,568 $ 58,016 1,280 $ 47,360
AGL Resources Inc 538 10,188 440 8,333
Amerada Hess Corp 38 2,209 711 41,327
Amoco Corp 394 37,258 3,692 349,125
Anadarko Petroleum Corp 439 32,239 500 36,719
Apache Corp 62 2,461 720 28,575
Ashland Inc 106 5,313 575 28,822
Atlantic Richfield Corp 210 15,750 2,340 175,500
British Petroleum Co PLC ADR
(UK) 2,129 180,146 4,657 394,105
Brooklyn Union Gas Co 510 15,396 400 12,075
Burlington Resources Inc 77 3,898 883 44,702
Chesapeake Energy Corp 0 -- 400 3,425
Chevron Corp 492 38,099 4,778 369,996
Coastal Corp 108 6,237 759 43,832
Columbia Gas System Inc 39 2,574 427 28,182
Consolidated Natural Gas Co 38 2,244 711 41,993
Cooper Cameron Corp 0 -- 500 32,438
Diamond Offshore Drilling
Inc 400 21,850 400 21,850
Dresser Industries Inc 107 4,467 1,325 55,319
Eastern Enterprises 37 1,320 191 6,816
El Paso Natural Gas Co 427 24,019 456 25,650
</TABLE>
58
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0 $ -- 0 $ -- 200 $ 4,013
303 18,199 258 15,496 440 26,428
2,106 35,539 1,726 29,126 3,137 52,937
600 17,213 500 14,344 1,100 31,556
1,000 39,313 800 31,450 1,200 47,175
1,723 22,507 1,048 13,690 1,885 24,623
2,000 83,750 1,600 67,000 2,400 100,500
4,400 387,750 3,450 304,031 7,100 625,688
582 32,337 415 23,058 1,032 57,341
1,790 99,681 1,300 72,394 2,050 114,159
3,348 380,417 2,736 310,878 6,035 685,727
1,600 63,900 250 9,984 337 13,459
882 23,538 871 23,245 1,249 33,333
600 19,800 400 13,200 1,200 39,600
5,783 436,617 4,694 354,397 10,228 772,214
1,459 69,303 1,174 55,765 1,820 86,450
279 2,895 230 2,386 367 3,808
------------ ------------ ------------
$ 9,511,026 $ 7,481,918 $ 15,497,333
$ 5,952,972 $ 4,595,694 $ 10,607,996
5.88% 7.18% 8.14%
2,296 $ 84,952 1,596 $ 59,052 1,500 $ 55,500
798 15,112 558 10,567 520 9,848
1,731 100,614 1,381 80,271 2,838 164,959
9,102 860,708 7,190 679,904 14,697 1,389,785
1,101 80,855 946 69,472 1,715 125,945
1,649 65,445 1,284 50,959 2,835 112,514
1,330 66,666 1,041 52,180 2,190 109,774
5,970 447,750 4,722 354,150 9,428 707,100
9,100 770,121 7,528 637,084 13,221 1,118,829
719 21,705 514 15,516 490 14,792
2,333 118,108 1,836 92,948 3,784 191,565
1,000 8,563 500 4,281 1,000 8,563
12,074 934,980 9,592 742,781 19,386 1,501,203
1,970 113,768 1,535 88,646 3,233 186,706
1,011 66,726 851 56,166 1,638 108,108
1,729 102,119 1,373 81,093 2,866 169,273
800 51,900 800 51,900 1,100 71,363
2,200 120,175 800 43,700 1,000 54,625
3,262 136,189 2,602 108,634 5,307 221,567
406 14,489 267 9,529 455 16,238
842 47,363 627 35,269 778 43,763
</TABLE>
59
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ELF Aquitaine ADR (France) 8,350 $ 465,512 17,700 $ 986,774
Enron Corp 215 8,308 2,294 88,462
Enron Oil & Gas Co 700 16,888 800 19,300
Ensco International Inc 500 31,750 600 38,100
Enserch Exploration Inc+ 138 1,242 1,213 10,919
Exxon Corp 1,952 119,438 18,261 1,117,344
Falcon Drilling Company Inc 0 -- 300 9,450
Fina Inc Class A 0 -- 100 6,600
Global Marine Inc+ 1,200 34,125 1,500 42,656
Halliburton Co 250 11,938 2,014 96,169
Helmerich & Payne Inc 43 3,037 150 10,594
Indiana Energy Inc 0 -- 0 --
Kerr-McGee Corp 41 2,547 327 20,315
Louisiana Land & Exploration
Corp 0 -- 242 18,528
MAPCO Inc 374 11,220 520 15,600
MCN Corp 616 18,904 500 15,344
Mobil Corp 596 43,359 5,788 421,077
Monterey Resources Inc 37 755 356 7,343
Murphy Oil Corp 293 15,730 480 25,770
Nabors Industries Inc+ 900 30,994 900 30,994
National Fuel Gas Co 400 17,775 320 14,220
Natural Gas Clearinghouse
Inc 0 -- 100 1,638
NICOR Inc 42 1,525 329 11,947
Noble Affiliates Inc 338 15,675 630 29,216
Noble Drilling Corp+ 0 -- 1,400 39,813
Occidental Petroleum Corp 286 6,703 2,420 56,719
ONEOK Inc 47 1,522 228 7,382
Oryx Energy Co+ 195 5,155 797 21,071
Pacific Enterprises Co 48 1,581 668 22,002
Parker Drilling Co+ 0 -- 0 --
Pennzoil Co 30 2,316 417 32,187
Peoples Energy Corp 61 2,299 245 9,233
PG&E Corp 265 15,990 260 15,657
Phillips Petroleum Co 208 9,893 1,969 93,651
Pioneer Natural Resources
Co+ 376 15,017 297 11,861
Pogo Producing Co 300 13,013 300 13,013
Quaker State Corp 0 -- 0 --
Questar Corp 427 17,080 440 17,600
Ranger Oil Ltd 0 -- 0 --
Reading & Bates Corp+ 700 25,419 800 29,050
Repsol Sa 1,650 64,969 3,400 133,875
Rowan Co Inc+ 122 3,645 668 19,956
Royal Dutch Petroleum Corp 6,756 342,867 14,468 734,250
Santa Fe Energy Resources
Inc 83 918 809 8,950
Schlumberger Ltd 554 42,208 3,870 294,846
</TABLE>
60
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
35,450 $ 1,976,336 30,000 $ 1,672,500 52,750 $ 2,940,813
5,578 215,102 4,477 172,644 9,166 353,464
2,200 53,075 900 21,713 1,600 38,600
1,100 69,850 900 57,150 1,400 88,900
1,934 17,409 1,444 12,996 2,767 24,905
45,779 2,801,102 36,255 2,218,353 73,653 4,506,643
0 -- 0 -- 700 22,050
400 26,400 100 6,600 100 6,600
3,615 102,802 2,100 59,719 3,600 102,375
4,522 215,925 3,634 173,523 8,162 389,736
436 30,793 402 28,391 773 54,593
352 8,954 0 -- 0 --
913 56,720 749 46,532 1,402 87,099
662 50,684 451 34,530 1,067 81,692
936 28,080 776 23,280 1,200 36,000
930 28,539 670 20,561 600 18,413
14,536 1,057,494 11,510 837,353 23,362 1,699,586
827 17,057 546 11,261 1,246 25,699
1,077 57,821 697 37,420 1,070 57,446
1,285 44,252 1,429 49,211 2,300 79,206
582 25,863 412 18,308 385 17,108
1,600 26,200 0 -- 3,200 52,400
960 34,860 766 27,815 1,235 44,846
873 40,485 858 39,790 1,320 61,215
2,100 59,719 1,800 51,188 3,100 88,156
6,094 142,828 4,842 113,484 9,979 233,883
574 18,583 386 12,497 575 18,616
1,783 47,138 1,338 35,373 3,502 92,584
1,511 49,769 1,176 38,734 2,543 83,760
844 11,130 619 8,163 0 --
884 68,234 653 50,403 1,012 78,114
639 24,082 557 20,992 788 29,698
423 25,451 378 22,786 753 45,305
4,883 232,248 3,887 184,875 7,900 375,744
534 21,327 386 15,416 462 18,451
600 26,025 400 17,350 700 30,363
419 6,495 299 4,635 0 --
710 28,400 640 25,600 930 37,200
1,508 14,609 1,103 10,685 0 --
1,200 43,575 1,100 39,944 1,700 61,731
6,825 268,734 5,850 230,344 10,050 395,719
1,577 47,113 1,210 36,149 2,646 79,049
28,152 1,428,713 23,200 1,177,400 42,712 2,167,634
1,875 20,742 1,239 13,706 2,826 31,263
8,796 670,145 6,992 532,703 15,588 1,187,611
</TABLE>
61
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Seagull Energy Corp+ 391 $ 9,555 610 $ 14,907
Services (B J) Co 0 -- 400 28,900
Sonat Offshore Drilling Co 28 1,395 600 29,887
Sun Co Inc 12 467 527 20,487
Texaco Inc 204 23,511 1,970 227,042
Tosco Corp 971 32,104 1,540 50,916
Total Compagnie Francaise
des Petroles SA ADR
(France) 3,425 162,266 7,450 352,958
Transocean Offshore Inc 200 19,013 500 47,531
Ultramar Diamond Shamrock
Corp 610 19,904 755 24,632
Union Pacific Resources
Group 321 8,025 1,951 48,775
Union Texas Petroleum
Holdings Corp 600 13,988 700 16,319
United Meridian Corp 0 -- 400 15,675
Unocal Corp 373 14,570 1,986 77,578
USX-Marathon Group 202 6,578 2,098 68,316
Utilicorp United Inc 491 14,607 380 11,305
Valero Energy Corp 480 15,990 470 15,657
Vastar Resources Inc 200 8,538 200 8,538
Washington Gas & Light 464 11,803 360 9,158
Weatherford Enterra Inc+ 400 18,425 600 27,638
Western Atlas Inc 32 2,536 423 33,523
Williams Co Inc 87 4,051 1,182 55,037
Witco Corp 516 24,252 680 31,960
------------ ------------
TOTAL ENERGY & RELATED
- VALUE $ 2,296,579 $ 7,612,359
- COST $ 1,525,588 $ 5,298,744
ENGINEERING & CONSTRUCTION
PERCENT OF NET ASSETS 0.04% 0.07%
Armstrong World Industries
Inc 0 $ -- 276 $ 18,889
Centex Corp 55 2,991 237 12,887
Clayton Homes Inc 1,026 17,254 984 16,539
Fleetwood Enterprises Inc 30 934 313 9,742
Fluor Corp 19 1,066 613 34,405
Foster Wheeler Corp 100 4,569 323 14,757
Granite Construction Inc 0 -- 0 --
Kaufman & Broad Home Corp 57 1,140 292 5,840
Pulte Corp 48 1,758 128 4,688
Rouse Co 400 11,750 600 17,625
------------ ------------
TOTAL ENGINEERING &
CONSTRUCTION
- VALUE $ 41,462 $ 135,372
- COST $ 28,924 $ 120,687
</TABLE>
62
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
548 $ 13,392 403 $ 9,848 1,475 $ 36,045
600 43,350 600 43,350 900 65,025
1,573 78,355 1,212 60,373 2,595 129,263
1,340 52,092 1,074 41,752 2,176 84,592
4,877 562,074 3,883 447,516 7,781 896,760
1,467 48,503 1,877 62,058 3,435 113,570
14,670 694,998 12,447 589,682 21,813 1,033,404
400 38,025 700 66,544 1,000 95,063
1,544 50,363 1,237 40,344 1,925 62,813
4,479 111,975 3,642 91,050 8,204 205,111
800 18,650 900 20,981 1,400 32,637
0 -- 500 19,594 800 31,350
4,535 177,148 3,688 144,063 8,066 315,078
5,249 170,921 4,159 135,427 8,716 283,815
675 20,081 494 14,697 472 14,042
764 25,451 684 22,786 1,360 45,305
1,600 68,300 200 8,538 500 21,344
624 15,873 454 11,549 440 11,193
1,057 48,688 700 32,244 1,200 55,275
1,025 81,231 792 62,766 1,611 127,672
2,937 136,754 2,339 108,910 4,748 221,079
1,352 63,544 1,022 48,034 1,495 70,265
------------ ------------ ------------
$ 16,988,939 $ 13,618,285 $ 26,176,991
$ 11,763,293 $ 9,543,462 $ 20,107,956
0.10% 0.13% 0.15%
797 $ 54,545 560 $ 38,325 1,241 $ 84,931
516 28,058 431 23,436 711 38,661
1,945 32,700 1,320 22,193 2,208 37,114
678 21,103 545 16,963 810 25,211
1,555 87,274 1,226 68,809 2,600 145,925
691 31,570 554 25,311 1,292 59,028
270 5,670 0 -- 0 --
695 13,900 519 10,380 828 16,560
372 13,625 306 11,207 501 18,349
500 14,688 900 26,438 1,600 47,000
------------ ------------ ------------
$ 303,133 $ 243,062 $ 472,779
$ 260,589 $ 208,427 $ 441,810
</TABLE>
63
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ENTERTAINMENT & LEISURE
PERCENT OF NET ASSETS 0.19% 0.53%
Ascent Entertainment Group+ 248 $ 2,728 292 $ 3,212
Bally Total Fitness Holding
Corp+ 26 361 76 1,055
Boyd Gaming Corp+ 0 -- 200 1,663
Brunswick Corp 92 2,806 692 21,106
Callaway Golf Co 596 20,078 680 22,908
Circus Circus Entertainment
Inc+ 629 15,057 930 22,262
Coleman Co Inc+ 0 -- 200 3,163
Disney (Walt) Co 494 37,945 4,987 383,064
Galileo International Inc+ 0 -- 400 10,575
Gaylord Entertainment Co
Class A 315 7,343 315 7,343
Grand Casinos Inc+ 400 6,175 400 6,175
Harrah's Entertainment Inc+ 104 2,334 754 16,918
Hasbro Inc 93 2,499 951 25,558
International Game
Technology Inc 997 19,940 1,400 28,000
Mattel Inc 358 11,971 2,292 76,639
MGM Grand Inc+ 200 8,025 200 8,025
Mirage Resorts Inc+ 1,290 34,588 0 --
Polaroid Corp 32 1,690 318 16,794
Stanhome Inc 220 7,150 170 5,525
Tiffany & Co 326 14,752 400 18,100
Time Warner Inc 463 23,845 4,160 214,240
Topp Inc+ 512 1,728 0 --
U.S. West Media Group 494 9,880 4,484 89,680
------------ ------------
TOTAL ENTERTAINMENT &
LEISURE
- VALUE $ 230,895 $ 982,005
- COST $ 198,005 $ 836,719
ENVIRONMENTAL CONTROL
PERCENT OF NET ASSETS 0.07% 0.12%
Browning-Ferris Industries
Inc 138 $ 4,821 1,540 $ 53,804
Mid American Waste Systems
Inc+ 0 -- 0 --
Republic Industries Inc+ 1,500 36,844 3,100 76,144
Safety-Kleen Corp 76 1,534 466 9,407
U.S.A. Waste Services Inc+ 800 33,600 1,730 72,660
Wheelabrator Technologies
Inc 700 10,981 1,000 15,688
------------ ------------
TOTAL ENVIRONMENTAL CONTROL
- VALUE $ 87,780 $ 227,703
- COST $ 75,147 $ 204,134
</TABLE>
64
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.84% 1.02% 1.19%
399 $ 4,389 397 $ 4,367 678 $ 7,458
185 2,567 116 1,610 223 3,094
0 -- 300 2,494 700 5,819
1,863 56,822 1,490 45,445 2,988 91,134
1,158 39,010 956 32,205 1,516 51,070
2,122 50,795 1,562 37,390 2,195 52,543
0 -- 0 -- 200 3,163
12,488 959,234 9,885 759,292 20,027 1,538,324
0 -- 0 --
420 9,791 515 12,006 750 17,484
700 10,806 500 7,719 900 13,894
1,930 43,304 1,530 34,329 3,063 68,726
2,396 64,379 1,922 51,640 3,867 103,926
3,072 61,440 2,217 44,340 3,145 62,900
5,220 174,544 4,257 142,343 9,418 314,914
700 28,088 400 16,050 400 16,050
3,200 85,800 2,600 69,713 5,200 139,425
861 45,472 614 32,427 1,333 70,399
299 9,718 214 6,955 210 6,825
480 21,720 560 25,340 800 36,200
10,255 528,133 8,186 421,579 16,488 849,132
722 2,437 527 1,779 0 --
11,074 221,480 8,863 177,260 18,256 365,120
------------ ------------ ------------
$ 2,419,929 $ 1,926,283 $ 3,817,600
$ 2,074,646 $ 1,609,896 $ 3,304,921
0.12% 0.15% 0.19%
3,889 $ 135,872 3,110 $ 108,656 6,366 $ 222,412
372 163 0 -- 0 --
1,600 39,300 2,600 63,863 7,100 174,394
1,077 21,742 774 15,625 1,243 25,093
2,400 100,800 1,900 79,800 3,968 166,635
2,800 43,925 1,400 21,963 1,800 28,237
------------ ------------ ------------
$ 341,802 $ 289,907 $ 616,771
$ 282,156 $ 261,019 $ 583,726
</TABLE>
65
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
FOOD & RELATED
PERCENT OF NET ASSETS 1.67% 2.78%
Albertson's Inc 194 $ 6,669 1,877 $ 64,522
American Stores Co 250 5,922 2,072 49,081
Archer-Daniels-Midland Co 477 10,309 4,172 90,212
Bob Evans Farms Inc 468 8,307 360 6,390
Boston Chicken Inc+ 600 7,388 500 6,156
Brinker International Inc+ 1,056 17,688 990 16,583
Brown-Forman Corp Class B 71 3,426 513 24,752
Campbell Soup Co 380 17,623 3,434 159,252
ConAgra Inc 284 18,265 1,914 123,094
CPC International Inc 137 12,210 1,120 99,820
Cracker Barrel Old Country
Store Inc 649 19,957 710 21,833
Darden Restaurants Inc 153 1,540 1,264 12,719
Dave & Buster's Inc+ 0 -- 0 --
Dean Foods Co 424 18,815 440 19,525
Dole Food Inc 446 17,422 510 19,922
Earthgrains Co 28 1,148 146 5,986
Fleming Co Inc 0 -- 275 5,191
Flowers Industries Inc 909 16,817 720 13,320
Food Lion Inc Class A 2,100 15,553 3,100 22,959
Food Lion Inc Class B 1,400 10,150 2,300 16,675
General Mills Inc 203 13,017 1,265 81,118
General Nutrition Co Inc+ 700 19,425 900 24,975
Giant Food Inc Class A 54 1,755 469 15,243
Grand Metropolitan PLC ADR
(UK) 6,791 247,019 14,414 524,326
Great Atlantic & Pacific Tea
Co 67 1,679 277 6,942
Hannaford Brothers Co 236 8,024 360 12,240
Harcourt General Inc 86 4,090 552 26,255
Heinz (H J) Co 474 19,730 2,982 124,126
Hershey Foods Corp 208 11,102 1,193 63,676
Hormel Foods Corp 400 11,900 500 14,875
Host Marriott Services Corp+ 240 3,435 240 3,435
IBP Inc 732 16,790 1,020 23,396
International Dairy Queen
Class A+ 0 -- 0 --
International Multifoods
Corp 0 -- 0 --
Interstate Bakeries Corp 0 -- 200 11,725
Kellogg Co 438 19,601 3,284 146,959
Kroger Co 330 9,941 1,994 60,069
Lancaster Colony Corp 138 7,150 260 13,471
Lance Inc 0 -- 0 --
Lone Star Steakhouse &
Saloon+ 300 5,156 400 6,875
Luby's Cafeteria Inc 45 886 219 4,312
McCormick & Co Inc 588 13,892 700 16,538
</TABLE>
66
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
3.78% 4.60% 5.28%
4,584 $ 157,575 3,663 $ 125,916 7,407 $ 254,616
4,970 117,727 3,950 93,566 8,212 194,522
10,244 221,522 8,135 175,928 16,849 364,367
752 13,348 472 8,378 1,250 22,188
700 8,619 700 8,619 1,100 13,544
1,871 31,339 1,171 19,614 2,130 35,678
1,285 62,001 995 48,009 2,090 100,842
8,560 396,970 6,842 317,298 13,724 636,450
4,298 276,415 3,507 225,544 7,673 493,470
2,639 235,201 2,079 185,291 4,551 405,608
1,411 43,388 971 29,858 1,525 46,894
2,925 29,433 2,256 22,701 4,518 45,462
69 2,225 0 -- 0 --
707 31,373 637 28,267 1,005 44,597
1,008 39,375 768 30,000 1,225 47,852
334 13,694 268 10,988 612 25,092
662 12,495 562 10,608 848 16,006
1,318 24,383 936 17,316 1,915 35,428
5,600 41,475 4,200 31,106 6,400 47,400
4,300 31,175 3,000 21,750 4,700 34,075
2,969 190,387 2,282 146,333 5,177 331,975
2,100 58,275 1,400 38,850 2,100 58,275
1,126 36,595 903 29,348 1,808 58,760
28,667 1,042,779 23,679 861,322 41,717 1,517,474
693 17,368 584 14,637 819 20,526
745 25,330 465 15,810 840 28,560
1,348 64,114 1,060 50,416 2,245 106,778
6,648 276,723 5,337 222,153 11,800 491,175
2,509 133,918 2,015 107,551 4,479 239,067
600 17,850 600 17,850 1,100 32,725
380 5,439 320 4,580 680 9,732
2,152 49,361 1,542 35,370 2,500 57,344
369 9,087 0 -- 0 --
274 7,364 0 -- 0 --
600 35,175 300 17,588 500 29,313
7,386 330,524 6,074 271,812 13,170 589,357
4,574 137,792 3,588 108,088 8,140 245,218
470 24,352 340 17,616 528 27,357
478 10,217 0 -- 0 --
700 12,031 500 8,594 900 15,469
480 9,450 369 7,265 621 12,226
1,355 32,012 1,205 28,468 1,755 41,462
</TABLE>
67
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
McDonald's Corp 940 $ 44,474 5,499 $ 260,171
Michael Foods Inc 0 -- 0 --
Morrison Fresh Cooking Inc 96 456 50 238
Nabisco Holdings Corp Class
A 200 8,300 200 8,300
NPC International Inc+ 0 -- 0 --
Outback Steakhouse Inc+ 400 9,650 400 9,650
Pioneer Hi Bred
International Inc 132 11,311 649 55,611
Planet Hollywood
International Inc Class A+ 0 -- 100 1,963
Quaker Oats Co 136 6,392 1,116 52,452
Ralston-Purina Group 151 13,590 851 76,590
Richfood Holdings Inc 0 -- 500 11,250
RJR Nabisco Holdings Corp 1,670 58,137 2,443 85,047
Ruby Tuesday Inc+ 192 5,184 100 2,700
Ryans Family Steak House 119 1,101 516 4,773
Safeway Inc 1,099 55,980 1,527 77,794
Sara Lee Corp 613 24,673 3,850 154,963
Savannah Foods & Industries 0 -- 0 --
Sbarro Inc 0 -- 0 --
Shoney's Inc+ 97 558 370 2,128
Sizzler International Inc+ 254 937 0 --
Smucker (J M) Co Class A 305 8,063 0 --
Southland Corp+ 1,800 5,119 1,400 3,981
Starbucks Corp+ 700 28,700 800 32,800
Super Value Inc 76 2,983 418 16,407
Sysco Corp 198 7,029 1,413 50,162
Tootsie Roll Industries 212 10,362 212 10,370
Tyson Food Inc Class A 591 12,559 690 14,663
Unilever NV (Netherlands) 4,905 987,131 10,283 2,069,453
Universal Corp 381 13,859 400 14,550
Universal Foods Corp 279 10,829 320 12,420
UST Inc 284 8,201 1,550 44,756
Weis Markets Inc 200 6,750 100 3,375
Wendy's International Inc 105 2,527 1,014 24,399
Winn-Dixie Stores Inc 160 5,390 1,146 38,606
Wrigley (W M) Jr Co 179 12,978 931 67,498
------------ ------------
TOTAL FOOD & RELATED
- VALUE $ 1,987,024 $ 5,165,618
- COST $ 1,472,053 $ 3,839,931
FURNITURE & APPLIANCES
PERCENT OF NET ASSETS 0.07% 0.08%
Bassett Furniture Industries 25 $ 688 50 $ 1,375
HON Industries Inc 153 8,951 170 9,945
Leggett & Platt Inc 658 28,294 900 38,700
</TABLE>
68
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
12,189 $ 576,692 9,995 $ 472,889 21,791 $ 1,030,987
229 4,952 0 -- 0 --
160 760 99 470 193 917
800 33,200 200 8,300 400 16,600
374 4,254 284 3,231 0 --
500 12,063 600 14,475 900 21,712
1,462 125,275 1,181 101,197 2,646 226,729
1,600 31,400 200 3,925 300 5,888
2,467 115,949 1,897 89,159 4,398 206,706
1,951 175,590 1,549 139,410 3,375 303,750
0 -- 600 13,500 1,000 22,500
5,005 174,237 3,251 113,175 5,618 195,577
321 8,667 199 5,373 387 10,449
1,012 9,361 679 6,281 1,039 9,611
2,689 136,956 1,990 101,350 3,526 179,580
8,554 344,298 7,029 282,917 15,167 610,472
410 7,175 290 5,075 0 --
319 8,533 219 5,858 0 --
751 4,318 596 3,427 1,304 7,498
434 1,600 319 1,176 0 --
436 11,527 331 8,751 0 --
2,600 7,394 1,800 5,119 4,200 11,944
1,700 69,700 1,300 53,300 2,000 82,000
1,134 44,510 901 35,364 1,624 63,742
3,110 110,405 2,574 91,377 5,570 197,735
318 15,555 212 10,370 537 26,228
3,711 78,859 873 18,551 1,545 32,831
20,021 4,029,225 16,615 3,343,769 30,632 6,164,690
639 23,244 594 21,607 965 35,102
409 15,874 489 18,979 770 29,886
3,268 94,363 2,503 72,274 5,945 171,662
600 20,250 200 6,750 200 6,750
2,501 60,180 1,969 47,379 3,950 95,047
2,708 91,226 2,200 74,112 4,838 162,980
2,148 155,730 1,682 121,945 3,712 269,120
------------ ------------ ------------
$ 10,919,198 $ 8,715,243 $ 16,975,577
$ 8,174,038 $ 6,518,399 $ 13,520,723
0.11% 0.13% 0.14%
200 $ 5,500 120 $ 3,300 206 $ 5,665
484 28,314 354 20,709 435 25,448
1,474 63,382 1,384 59,512 2,030 87,290
</TABLE>
69
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Maytag Corp 112 $ 3,073 737 $ 20,221
Miller (Herman) Inc 338 17,492 520 26,910
National Presto Industries
Inc 0 -- 0 --
Skyline Corp 20 579 44 1,273
Sunbeam Oster Co Inc 500 22,000 500 22,000
Whirlpool Corp 80 4,580 574 32,862
------------ ------------
TOTAL FURNITURE & APPLIANCES
- VALUE $ 85,657 $ 153,286
- COST $ 39,043 $ 97,247
HEALTHCARE
PERCENT OF NET ASSETS 0.12% 0.19%
Apria Healthcare Group Inc+ 500 $ 8,750 600 $ 10,500
Cardinal Health Inc 112 7,387 844 55,915
HealthCare Compare Corp+ 284 15,833 390 21,743
Healthsouth Corp 488 12,170 2,697 67,256
Idexx Laboratories Inc+ 400 7,525 500 9,406
Lincare Holdings
Incorporated+ 0 -- 200 9,538
Mid Atlantic Medical
Services+ 400 6,175 500 7,719
Morrison Health Care Inc 128 2,200 66 1,134
Novacare Inc+ 0 -- 0 --
Oakley Inc 600 7,313 600 7,313
Oxford Health Plans Inc+ 500 36,563 800 58,500
PacifiCare Health Systems
Inc Class A+ 112 7,445 70 4,653
PacifiCare Health Systems
Inc Class B+ 174 11,897 195 13,333
Physician Corp of America+ 400 2,725 300 2,044
St Jude Medical Inc+ 48 1,827 656 24,969
Talbert Medical Mgmt
Holdings+ 20 1,251 25 1,564
United Healthcare Corp 189 9,190 1,360 66,130
------------ ------------
TOTAL HEALTHCARE
- VALUE $ 138,251 $ 361,717
- COST $ 136,476 $ 340,049
HOSPITAL & MEDICAL SUPPLIES
PERCENT OF NET ASSETS 0.37% 0.92%
Allegiance Corp 81 $ 2,541 628 $ 19,703
American Oncology Resources+ 0 -- 200 2,738
Arrow International Inc 0 -- 100 2,963
Arterial Vascular
Engineering+ 0 -- 100 3,700
Bard (C R) Inc 41 1,415 430 14,835
Bausch & Lomb Inc 54 2,217 367 15,070
Baxter International Inc 459 24,413 2,178 115,842
Becton Dickinson & Co 154 7,382 1,034 49,567
Beverly Enterprises+ 70 1,142 722 11,778
Biomet Inc 127 2,635 979 20,314
</TABLE>
70
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,801 $ 49,415 1,470 $ 40,333 2,912 $ 79,898
748 38,709 558 28,877 1,220 63,135
116 4,611 81 3,220 0 --
222 6,424 78 2,257 133 3,849
800 35,200 800 35,200 1,200 52,800
1,385 79,291 1,044 59,769 2,235 127,954
------------ ------------ ------------
$ 310,846 $ 253,177 $ 446,039
$ 189,610 $ 159,933 $ 319,764
0.28% 0.33% 0.38%
800 $ 14,000 800 $ 14,000 1,300 $ 22,750
1,931 127,896 1,598 105,868 3,496 231,577
816 45,492 596 33,227 865 48,224
6,150 153,366 4,868 121,396 11,100 276,806
800 15,050 600 11,288 1,000 18,813
0 -- 0 -- 400 19,075
700 10,806 500 7,719 1,300 20,069
214 3,678 132 2,269 258 4,434
975 14,686 710 10,694 0 --
1,200 14,625 800 9,750 1,200 14,625
1,400 102,375 1,100 80,438 1,700 124,312
459 30,433 136 8,985 242 16,039
526 35,978 411 28,102 595 40,696
600 4,088 500 3,406 1,100 7,494
1,642 62,499 1,368 52,069 2,794 106,347
33 2,065 30 1,877 52 3,253
3,440 167,270 2,713 131,920 5,574 271,036
------------ ------------ ------------
$ 804,307 $ 623,008 $ 1,225,550
$ 692,556 $ 520,696 $ 1,139,063
1.31% 1.59% 1.97%
930 $ 29,179 698 $ 21,900 1,507 $ 47,282
0 -- 200 2,738 400 5,475
0 -- 0 -- 200 5,925
0 -- 0 -- 0 --
1,049 36,190 855 29,497 1,408 48,576
995 40,857 836 34,328 1,669 68,533
5,035 267,799 4,026 214,133 8,940 475,496
2,248 107,763 1,742 83,507 3,883 186,141
1,830 29,852 1,487 24,257 2,897 47,257
2,134 44,281 1,561 32,391 3,590 74,493
</TABLE>
71
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Boston Scientific Corp+ 293 $ 20,657 1,586 $ 111,813
Columbia/HCA Healthcare Corp 512 16,160 4,882 154,088
Dentsply International Inc 200 11,250 200 11,250
Depuy Inc+ 0 -- 200 4,625
Guidant Corp 50 4,391 623 54,707
Health Care & Retirement
Corp+ 350 12,753 400 14,575
Health Management Associates
Inc Class A+ 950 28,084 1,050 31,041
Hillenbrand Industries Inc 300 13,181 500 21,969
Horizon/CMS Healthcare Corp+ 600 12,338 400 8,225
Johnson & Johnson 1,876 106,346 10,532 597,032
Mallinckrodt Group Inc 84 3,056 553 20,115
Manor Care Inc 59 1,822 474 14,635
Medpartners Inc+ 1,210 25,864 2,089 44,652
Medtronic Inc 350 31,631 1,908 172,436
Phycor Inc+ 600 17,663 600 17,663
Quorum Health Group Inc+ 300 10,219 300 10,219
Stryker Corp 748 29,873 820 32,749
Sybron International Corp+ 500 19,969 600 23,963
Tenet Healthcare Corp 211 5,750 2,254 61,421
Thermo Cardiosystems Inc+ 150 3,759 250 6,266
United States Surgical 49 1,614 568 18,709
Vencor Inc+ 500 20,063 600 24,075
------------ ------------
TOTAL HOSPITAL & MEDICAL
SUPPLIES
- VALUE $ 438,188 $ 1,712,738
- COST $ 358,108 $ 1,364,065
HOUSEHOLD PRODUCTS
PERCENT OF NET ASSETS 0.22% 0.82%
Alberto-Culver Co Class B 0 $ -- 461 $ 13,455
Avon Products Inc 154 9,866 1,031 66,048
Colgate-Palmolive Co 366 22,967 2,333 146,396
Estee Lauder Co Class A 200 9,500 200 9,500
Gillette Co 697 57,737 4,434 367,207
Kimberly-Clark Corp 762 36,147 4,418 209,579
NCH Corp 0 -- 0 --
Procter & Gamble Co 973 129,470 5,356 712,682
------------ ------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 265,687 $ 1,524,867
- COST $ 221,438 $ 1,056,231
INSURANCE
PERCENT OF NET ASSETS 0.86% 2.13%
Aegon NV ADR (Netherlands) 22 $ 1,634 324 $ 24,057
Aetna Inc 168 16,034 1,136 108,417
</TABLE>
72
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
3,511 $ 247,525 2,828 $ 199,374 6,232 $ 439,356
12,278 387,537 9,798 309,249 19,653 620,298
300 16,875 300 16,875 500 28,125
1,700 39,313 300 6,938 400 9,250
1,334 117,142 1,031 90,535 2,423 212,770
750 27,328 600 21,863 1,050 38,259
1,650 48,778 1,600 47,300 2,525 74,645
1,000 43,938 800 35,150 1,300 57,119
900 18,506 700 14,394 1,000 20,563
23,673 1,341,962 18,997 1,076,892 42,067 2,384,673
1,370 49,834 1,053 38,303 2,179 79,261
1,236 38,162 966 29,825 1,940 59,897
2,420 51,728 2,452 52,412 4,662 99,650
4,322 390,601 3,432 310,167 7,549 682,241
1,050 30,909 750 22,078 1,450 42,684
400 13,625 300 10,219 600 20,437
1,668 66,616 1,288 51,440 1,900 75,881
800 31,950 800 31,950 1,200 47,925
5,579 152,028 4,438 120,935 9,055 246,749
300 7,519 300 7,519 450 11,278
1,392 45,849 1,024 33,728 2,229 73,418
1,500 60,188 980 39,323 1,374 55,132
------------ ------------ ------------
$ 3,783,834 $ 3,009,220 $ 6,338,789
$ 2,934,223 $ 2,286,905 $ 5,349,685
1.19% 1.45% 1.89%
1,054 $ 30,764 842 $ 24,576 1,682 $ 49,093
2,410 154,391 1,925 123,320 4,219 270,280
5,321 333,893 4,333 271,896 9,269 581,630
800 38,000 300 14,250 500 23,750
9,862 816,680 7,903 654,500 17,604 1,457,815
9,954 472,193 7,978 378,456 17,688 839,074
124 8,432 89 6,052 0 --
12,000 1,596,749 9,630 1,281,392 21,324 2,837,425
------------ ------------ ------------
$ 3,451,102 $ 2,754,442 $ 6,059,067
$ 2,439,719 $ 1,890,323 $ 4,569,091
3.08% 3.65% 4.39%
741 $ 55,019 576 $ 42,768 891 $ 66,157
2,818 268,943 2,209 210,821 4,525 431,855
</TABLE>
73
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
AFLAC Corp 1,096 $ 60,349 1,670 $ 91,954
Alleghany Corp 2 490 102 24,480
Allmerica Financial Corp 324 13,409 431 17,829
Allstate Corp 304 22,211 3,217 235,042
American General Corp 166 7,999 1,794 86,448
American International Group
Inc 1,064 100,368 5,552 523,969
American National Insurance
Co 100 9,700 100 9,700
American States Financial
Corp 0 -- 100 4,681
Aon Corp 60 3,056 1,240 63,163
Argonaut Group Inc 0 -- 100 3,250
Chubb Corp 108 7,223 1,250 83,594
CIGNA Corp 76 13,937 520 95,355
Cincinnati Financial Corp 430 34,938 646 52,488
CNA Financial Corp+ 100 11,344 100 11,344
Conseco Inc 150 6,450 1,325 56,996
Equitable Co Inc 600 26,100 900 39,150
Equitable of Iowa Co 300 19,538 300 19,538
Everest Reinsurance Holdings
Inc 300 10,856 200 7,238
Foundation Health Systems+ 792 25,186 1,027 32,659
General Re Corp 97 18,806 617 119,621
Hartford Financial Services
Group 131 10,447 832 66,352
Highlands Insurance Group+ 37 872 76 1,791
HSB Group Inc 230 12,363 280 15,050
Humana Inc+ 150 3,534 1,200 28,275
Jefferson-Pilot Corp 104 7,235 509 35,407
Leucadia National Corp 400 12,750 400 12,750
Lincoln National Corp 40 2,678 792 53,014
Loews Corp 50 5,097 835 85,118
Marsh & McLennan Companies
Inc 260 17,745 1,348 92,001
MBIA Inc 50 5,663 363 41,110
Mercury General Corp 100 8,750 100 8,750
Ohio Casualty Corp 300 13,950 400 18,600
Old Republic International
Corp 750 26,953 850 30,547
PMI Group Inc 300 17,344 300 17,344
Progressive Corp Ohio 82 8,118 520 51,480
Protective Life Corp 300 14,925 300 14,925
Provident Companies Inc 297 19,342 266 17,323
Providian Financial Corp 51 1,899 648 24,138
Reliance Group Holdings 0 -- 700 8,575
Reliastar Financial Corp 300 22,425 500 37,375
SAFECO Corp 70 3,439 951 46,718
St Paul Co 23 1,688 619 45,419
Sunamerica Inc 600 32,325 1,100 59,263
TIG Holdings Inc 500 15,625 500 15,625
</TABLE>
74
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
3,217 $ 177,136 2,137 $ 117,669 3,727 $ 205,218
104 24,970 104 24,970 104 24,970
1,279 52,922 172 7,128 303 12,544
8,136 594,436 6,422 469,207 12,991 949,155
4,483 216,025 3,530 170,102 7,113 342,758
12,479 1,177,659 10,147 957,577 22,189 2,094,088
200 19,400 200 19,400 300 29,100
0 -- 200 9,363 300 14,044
3,052 155,461 2,435 124,033 4,977 253,516
0 -- 200 6,500 300 9,750
3,194 213,599 2,511 167,923 5,102 341,196
1,357 248,840 1,119 205,197 2,147 393,706
1,245 101,156 940 76,375 1,395 113,344
200 22,688 100 11,344 300 34,031
3,384 145,517 2,720 116,960 5,554 238,803
3,100 134,850 1,300 56,550 1,900 82,650
400 26,050 400 26,050 700 45,588
400 14,475 300 10,856 500 18,094
1,255 39,909 814 25,889 3,642 115,855
1,533 297,210 1,172 227,222 2,351 455,800
2,197 175,211 1,758 140,200 3,570 284,708
172 4,053 136 3,204 216 5,090
309 16,609 324 17,415 520 27,950
3,007 70,852 2,405 56,668 4,865 114,632
1,346 93,631 1,017 70,745 2,105 146,429
400 12,750 600 19,125 1,000 31,875
1,876 125,575 1,496 100,138 3,095 207,172
2,066 210,603 1,730 176,352 3,437 350,359
3,040 207,480 2,368 161,616 5,360 365,820
839 95,017 674 76,331 1,334 151,075
200 17,500 200 17,500 300 26,250
700 32,550 500 23,250 800 37,200
1,800 64,688 1,250 44,922 2,000 71,875
300 17,344 400 23,125 600 34,688
1,297 128,403 997 98,703 2,150 212,850
600 29,850 500 24,875 700 34,825
806 52,491 501 32,628 633 41,224
1,708 63,623 1,328 49,468 2,853 106,274
0 -- 0 -- 1,500 18,375
800 59,800 600 44,850 1,100 82,225
2,367 116,279 1,799 88,376 3,810 187,166
1,543 113,218 1,196 87,757 2,481 182,043
2,400 129,300 1,900 102,363 4,200 226,275
900 28,125 700 21,875 1,000 31,250
</TABLE>
75
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Tokio Marine & Fire
Insurance Co
ADR (Japan) 4,200 $ 245,175 15,400 $ 898,974
Torchmark Corp 156 5,879 1,040 39,195
Transamerica Corp 74 7,294 515 50,760
Transatlantic Holdings Inc 226 15,975 150 10,603
Travelers Inc 483 30,671 4,704 298,704
Travelers Property Casualty 100 4,025 100 4,025
Uici+ 0 -- 400 12,000
Unitrin Inc 300 18,000 300 18,000
UNUM Corp 166 6,848 999 41,209
USF & G Corp 74 1,623 856 18,779
Wellpoint Health Networks+ 0 -- 100 5,438
Western National Corp 400 11,150 400 11,150
Zurich Reinsurance Centre
Holdings Inc 200 7,888 100 3,944
------------ ------------
TOTAL INSURANCE
- VALUE $ 1,029,323 $ 3,950,704
- COST $ 789,571 $ 2,956,747
INVESTMENT BANKING &
BROKERAGE
PERCENT OF NET ASSETS 0.02% 0.12%
Alex Brown Inc 0 $ -- 200 $ 16,938
Morgan Stanley Dean Witter 459 22,101 4,269 205,422
------------ ------------
TOTAL INVESTMENT BANKING &
BROKERAGE
- VALUE $ 22,101 $ 222,360
- COST $ 11,606 $ 134,999
LODGING
PERCENT OF NET ASSETS 0.07% 0.16%
Choice Hotels Inc+ 59 $ 1,125 505 $ 9,627
Doubletree Corp+ 0 -- 300 15,000
Extended Stay America Inc+ 0 -- 600 8,025
HFS Inc+ 93 5,179 1,161 64,653
Hilton Hotels Corp 293 8,991 2,004 61,498
Homestead Village Property
Inc+ 75 1,263 88 1,474
Host Marriott Corp+ 1,300 25,350 1,900 37,050
La Quinta Inns Inc 800 16,800 750 15,750
Marriott International 173 11,515 1,052 70,024
Promus Hotel Corp+ 477 18,514 561 21,774
------------ ------------
TOTAL LODGING
- VALUE $ 88,737 $ 304,875
- COST $ 66,364 $ 229,646
</TABLE>
76
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
30,800 $ 1,797,949 23,650 $ 1,380,569 49,600 $ 2,895,400
2,568 96,782 2,020 76,129 4,132 155,725
1,236 121,823 998 98,365 1,990 196,139
532 37,606 390 27,568 460 32,516
11,785 748,348 9,401 596,964 18,882 1,199,007
900 36,225 100 4,025 300 12,075
0 -- 0 -- 900 27,000
600 36,000 500 30,000 700 42,000
2,534 104,528 1,992 82,170 4,246 175,147
2,094 45,937 1,578 34,617 3,323 72,898
0 -- 0 -- 300 16,313
600 16,725 400 11,150 800 22,300
0 -- 100 3,944 300 11,831
------------ ------------ ------------
$ 8,893,140 $ 6,910,891 $ 14,108,203
$ 6,482,922 $ 5,019,781 $ 11,485,465
0.18% 0.21% 0.27%
0 $ -- 0 $ -- 600 $ 50,813
10,601 510,149 8,407 404,573 16,853 811,051
------------ ------------ ------------
$ 510,149 $ 404,573 $ 861,864
$ 296,997 $ 237,644 $ 642,338
0.22% 0.25% 0.32%
1,105 $ 21,064 807 $ 15,383 1,217 $ 23,199
0 -- 0 -- 600 30,000
0 -- 0 -- 1,300 17,388
2,923 162,775 2,360 131,423 4,648 258,835
4,521 138,738 3,514 107,836 7,991 245,224
101 1,684 113 1,895 189 3,158
3,400 66,300 2,500 48,750 4,300 83,850
1,500 31,500 1,100 23,100 1,700 35,700
2,327 154,891 1,787 118,947 4,056 269,978
1,174 45,566 745 28,915 1,255 48,710
------------ ------------ ------------
$ 622,518 $ 476,249 $ 1,016,042
$ 437,148 $ 325,425 $ 782,884
</TABLE>
77
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MACHINERY
PERCENT OF NET ASSETS 0.20% 0.42%
AGCO Corp 300 $ 9,750 300 $ 9,750
AVX Corp 300 10,556 200 7,038
Black & Decker Corp 122 4,674 721 27,623
Case Corp 100 6,706 573 38,427
Caterpillar Inc 314 18,232 2,800 162,575
Cincinnati Milacron Inc 59 1,519 344 8,858
Cummins Engine Co Inc 23 1,770 282 21,696
Deere & Co 228 12,768 1,842 103,152
Federal Mogul Corp 396 14,157 300 10,725
Harsco Corp 538 24,244 620 27,939
Ingersoll-Rand Co 110 6,614 787 47,318
Jacobs Engineering Group+ 0 -- 0 --
Kubota Corp ADR (Japan) 0 -- 100 8,200
MagneTek Inc+ 0 -- 0 --
Makita Corp ADR (Japan) 2,150 29,428 7,950 108,816
McDermott International Inc 44 1,419 432 13,932
Nordson Corp 214 12,359 160 9,240
Pall Corp 178 4,216 1,033 24,469
Parker Hannifin Corp 102 6,560 560 36,015
Pentair Co 0 -- 0 --
Presstek Inc 200 8,000 400 16,000
SPX Corp 22 1,279 46 2,674
Tecumseh Products Co Class A 241 13,617 190 10,735
Teleflex Inc 350 11,091 0 --
Thermo Electron Corp+ 133 5,353 1,072 43,148
UCAR International Inc+ 400 18,875 400 18,875
York International Corp 402 18,040 520 23,335
Zurn Industries Inc 22 653 46 1,366
------------ ------------
TOTAL MACHINERY
- VALUE $ 241,880 $ 781,906
- COST $ 206,855 $ 624,750
MANUFACTURING
PERCENT OF NET ASSETS 0.03% 0.09%
Evi Inc 0 $ -- 300 $ 15,769
Tyco International Ltd 416 32,630 1,901 149,110
------------ ------------
TOTAL MANUFACTURING
- VALUE $ 32,630 $ 164,879
- COST $ 22,917 $ 117,016
</TABLE>
78
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.64% 0.75% 0.86%
500 $ 16,250 600 $ 19,500 800 $ 26,000
1,300 45,744 300 10,556 600 21,113
1,763 67,545 1,391 53,293 2,890 110,723
1,318 88,388 1,057 70,885 2,194 147,135
6,932 402,489 5,538 321,550 11,084 643,565
761 19,596 538 13,853 854 21,991
707 54,395 596 45,855 1,198 92,171
4,687 262,472 3,702 207,312 7,517 420,952
553 19,770 398 14,229 380 13,585
1,148 51,732 758 34,157 1,320 59,483
1,960 117,845 1,562 93,915 3,308 198,894
373 11,936 0 -- 0 --
100 8,200 100 8,200 100 8,200
367 7,730 0 -- 0 --
15,625 213,867 12,175 166,645 25,150 344,241
1,038 33,475 808 26,058 1,607 51,826
293 16,921 208 12,012 385 22,234
2,222 52,634 1,732 41,027 4,048 95,887
1,331 85,600 1,105 71,065 2,226 143,160
576 20,520 406 14,464 0 --
400 16,000 400 16,000 600 24,000
226 13,136 83 4,824 248 14,415
345 19,493 249 14,069 431 24,352
508 16,097 388 12,295 0 --
2,816 113,344 2,238 90,079 4,642 186,840
800 37,750 600 28,313 900 42,469
959 43,035 714 32,041 1,085 48,689
224 6,650 180 5,344 241 7,155
------------ ------------ ------------
$ 1,862,614 $ 1,427,541 $ 2,769,080
$ 1,398,723 $ 1,087,808 $ 2,292,968
0.12% 0.15% 0.21%
0 $ -- 0 $ -- 800 $ 42,050
4,395 344,733 3,538 277,512 7,834 614,479
------------ ------------ ------------
$ 344,733 $ 277,512 $ 656,529
$ 237,680 $ 183,652 $ 485,871
</TABLE>
79
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
METAL FABRICATORS
PERCENT OF NET ASSETS 0.25% 0.70%
Alcan Aluminum Ltd 218 $ 7,616 1,699 $ 59,359
Allegheny Teledyne Inc 256 7,904 1,464 45,201
Alumax Inc+ 489 20,263 480 19,890
Aluminum Co of America 110 9,048 1,251 102,895
Armco Inc+ 107 635 908 5,391
Barrick Gold Corp 307 6,984 2,780 63,245
Battle Mountain Gold Co 328 1,866 1,859 10,573
Bethlehem Steel Corp+ 62 744 890 10,680
British Steel PLC ADR (UK) 850 24,278 1,500 42,844
Crane Co 78 3,442 376 16,591
Engelhard Corp 64 1,336 1,109 23,150
Freeport McMoRan Copper &
Gold Inc Class B 38 1,017 28 749
Freeport McMoRan Inc 222 6,216 1,597 44,716
Getchell Gold Corp+ 24 816 359 12,206
Inland Steel Industries Inc 0 -- 411 8,657
Kaydon Corp 0 -- 0 --
Laboratory Corp of America
Holdings 660 1,733 418 1,097
Lukens Inc 0 -- 0 --
Mitsui & Co Ltd ADR (Japan) 950 158,650 3,300 551,099
Nucor Corp 27 1,531 698 39,568
Oregon Steel Mills Inc 0 -- 0 --
Phelps Dodge Corp 74 5,952 415 33,382
Placer Dome Inc 342 5,686 1,823 30,307
Precision Castparts Corp 0 -- 200 12,925
Reynolds Metals Co 56 3,959 575 40,645
Timken Co 0 -- 473 17,708
USX--U.S. Steel Group 32 1,124 654 22,972
WMC Ltd ADR (Japan) 1,450 29,725 3,100 63,550
Worthington Industries Inc 33 613 757 14,052
------------ ------------
TOTAL METAL FABRICATORS
- VALUE $ 301,138 $ 1,293,452
- COST $ 299,326 $ 1,258,561
OFFICE EQUIPMENT & SUPPLIES
PERCENT OF NET ASSETS 0.01% 0.00%
Standard Register Co 301 $ 10,290 0 $ --
------------ ------------
TOTAL OFFICE EQUIPMENT &
SUPPLIES
- VALUE $ 10,290 $ --
- COST $ 6,560 $ --
</TABLE>
80
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.98% 1.17% 1.42%
4,207 $ 146,982 3,342 $ 116,761 6,860 $ 239,671
3,122 96,392 2,472 76,323 5,628 173,765
773 32,031 893 37,004 1,270 52,626
3,152 259,252 2,514 206,776 5,205 428,111
1,837 10,907 1,271 7,547 3,282 19,487
6,882 156,566 5,415 123,191 11,203 254,868
4,235 24,087 3,195 18,172 6,964 39,608
1,997 23,964 1,671 20,052 3,317 39,804
3,150 89,972 2,600 74,262 4,450 127,103
870 38,389 629 27,733 1,427 62,967
2,755 57,511 2,118 44,213 4,305 89,867
52 1,391 38 1,017 236 6,313
3,543 99,204 2,804 78,512 6,437 180,236
222 7,548 458 15,572 646 21,964
947 19,946 715 15,060 1,014 21,357
250 14,766 0 -- 0 --
1,043 2,738 684 1,796 1,337 3,510
230 4,298 0 -- 0 --
6,600 1,102,200 5,025 839,175 10,550 1,761,850
1,594 90,360 1,298 73,580 2,603 147,558
299 8,054 199 5,361 0 --
1,135 91,297 895 71,992 1,820 146,396
4,429 73,632 3,546 58,952 7,410 123,191
300 19,388 213 13,765 600 38,775
1,329 93,944 1,053 74,434 2,241 158,411
1,177 44,064 933 34,929 1,887 70,645
1,577 55,392 1,232 43,274 2,561 89,955
6,275 128,638 5,250 107,625 9,300 190,650
1,838 34,118 1,420 26,359 2,943 54,629
------------ ------------ ------------
$ 2,827,031 $ 2,213,437 $ 4,543,317
$ 2,714,365 $ 2,113,839 $ 4,523,891
0.00% 0.01% 0.00%
432 $ 14,769 312 $ 10,667 0 $ --
------------ ------------ ------------
$ 14,769 $ 10,667 $ --
$ 9,334 $ 6,837 $ --
</TABLE>
81
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS
PERCENT OF NET ASSETS 1.37% 3.10%
Abbott Laboratories 1,011 $ 60,597 6,135 $ 367,717
Allergan Inc 62 2,007 477 15,443
ALZA Corp+ 118 3,422 663 19,227
American Home Products Corp 1,038 74,736 5,085 366,120
Amgen Inc 366 18,140 2,078 102,991
Bergen Brunswig Corp Class A 525 22,050 645 27,090
Bristol-Myers Squibb Co 1,442 109,592 7,873 598,347
Centocor Inc+ 546 24,502 740 33,208
Covance Inc+ 90 1,647 581 10,608
Dura Pharmaceuticals Inc+ 0 -- 500 17,813
Glaxo Holdings PLC ADR (UK) 6,500 259,188 13,600 542,299
ICN Pharmaceuticals Inc 500 18,063 504 18,207
Interneuron Pharmaceuticals
Co 0 -- 400 7,400
IVAX Corp 1,230 11,608 1,240 11,703
Lilly (Eli) & Co 776 81,189 4,400 460,350
Marshall & Ilsley Corp 758 35,626 1,040 48,880
McKesson Corp 300 28,106 400 37,475
Merck & Co Inc 1,722 158,101 9,525 874,513
Millipore Corp 50 2,475 357 17,672
Mylan Laboratories 1,003 21,314 1,270 26,987
Novo Nordisk A/S ADR
(Denmark) 3,650 186,150 7,600 387,600
Omnicare Inc 600 17,363 900 26,044
Perrigo Co+ 812 11,622 550 7,872
Pfizer Inc 2,040 112,965 10,262 568,257
Pharmacia and Upjohn Inc 415 14,136 3,754 127,871
Rhone-Poulenc Rorer Inc 400 38,525 500 48,156
Scherer (R P) Corp+ 200 11,263 300 16,894
Schering-Plough Corp 1,152 55,296 5,820 279,360
Schweitzer-Mauduit
International Inc 20 800 92 3,680
SmithKline Beecham PLC ADR
(UK) 3,500 151,594 7,600 329,175
SouthTrust Corp 871 38,977 1,080 48,330
ThermoLase Corp+ 0 -- 100 1,613
Warner Lambert Co 368 46,759 2,182 277,250
Watson Pharmaceutical Inc+ 300 15,769 400 21,025
Xoma Corp+ 188 1,187 0 --
------------ ------------
TOTAL PHARMACEUTICALS
- VALUE $ 1,634,769 $ 5,747,177
- COST $ 1,178,457 $ 3,833,948
</TABLE>
82
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
4.30% 5.31% 6.52%
13,709 $ 821,683 11,021 $ 660,571 24,418 $ 1,463,554
1,224 39,627 951 30,789 2,009 65,041
1,428 41,412 1,074 31,146 2,756 79,924
11,458 824,976 9,176 660,672 20,351 1,465,272
4,848 240,279 3,881 192,352 8,542 423,363
786 33,012 775 32,550 1,350 56,700
17,755 1,349,379 14,217 1,080,492 31,544 2,397,344
1,381 61,972 1,166 52,324 1,720 77,185
1,030 18,793 878 16,014 1,546 28,215
700 24,938 700 24,938 1,100 39,188
27,400 1,092,575 23,200 925,100 40,750 1,624,906
708 25,577 607 21,928 1,340 48,408
0 -- 600 11,100 900 16,650
2,323 21,923 1,663 15,695 2,895 27,322
9,852 1,030,766 7,863 822,666 17,506 1,831,565
2,203 103,541 1,583 74,401 2,420 113,740
800 74,950 600 56,213 900 84,319
21,401 1,964,878 17,186 1,577,890 38,046 3,493,098
744 36,828 555 27,473 1,461 72,320
2,765 58,756 1,927 40,949 3,052 64,855
15,275 779,025 12,900 657,900 22,650 1,155,150
800 23,150 1,200 34,725 1,900 54,981
1,252 17,919 842 12,051 1,680 24,045
22,864 1,266,093 18,326 1,014,802 40,726 2,255,202
9,273 315,862 7,389 251,688 14,981 510,290
900 86,681 700 67,419 1,100 105,944
400 22,525 400 22,525 600 33,788
12,951 621,648 10,443 501,264 23,105 1,109,040
214 8,560 176 7,040 351 14,040
15,200 658,350 12,800 554,400 22,600 978,862
2,137 95,631 1,587 71,018 2,535 113,441
0 -- 0 -- 300 4,838
4,847 615,872 3,881 493,130 8,546 1,085,876
600 31,538 500 26,281 1,000 52,563
193 1,218 193 1,218 0 --
------------ ------------ ------------
$ 12,409,937 $ 10,070,724 $ 20,971,029
$ 8,256,670 $ 6,589,749 $ 14,930,406
</TABLE>
83
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PUBLISHING
PERCENT OF NET ASSETS 0.22% 0.40%
American Greetings Corp
Class A 30 $ 1,043 574 $ 19,947
Barnes & Noble+ 200 9,288 200 9,288
Belo (A H) Corp 456 19,551 640 27,440
Chris-Craft Industries Inc 116 5,710 262 12,836
Comcast Corp Class A 440 10,313 2,797 65,555
Donnelley (R R) & Sons Co 153 5,957 1,038 40,417
Dow Jones & Co Inc 100 4,281 748 32,024
E.W. Scripps Company 300 11,794 300 11,794
Ennis Business Forms Inc 0 -- 0 --
Gannett Co Inc 133 12,959 1,163 113,320
Gibson Greetings Inc+ 0 -- 0 --
Golden Books Family
Entertainment Inc+ 234 2,325 0 --
Harland (John H) Co 53 1,050 236 4,676
Houghton Mifflin Co 304 10,545 240 8,325
Interpublic Group Co Inc 123 5,996 976 47,580
Knight-Ridder Inc 40 2,025 661 33,463
Lee Enterprises Inc 498 12,761 0 --
Liberty Media Group Class A 1,985 52,354 2,659 70,131
Marvel Entertainment Group
Inc+ 0 -- 200 375
McGraw-Hill Inc 72 4,415 697 42,735
Media General Inc Class A 280 10,290 220 8,085
Meredith Corp 100 3,000 412 12,360
Moore Corp Ltd 100 1,981 646 12,799
New York Times Co Class A 112 5,292 659 31,138
News Corporation Ltd 1,250 22,578 2,700 48,769
News Corporation Ltd 0 -- 290 4,386
Readers Digest Association
Class A 700 20,694 1,000 29,563
Readers Digest Association
Class B 200 5,550 300 8,325
Scholastic Inc+ 200 6,850 200 6,850
Times Mirror Co Class A 48 2,433 719 36,444
Washington Post Co Class B 27 11,360 0 --
------------ ------------
TOTAL PUBLISHING
- VALUE $ 262,395 $ 738,625
- COST $ 221,729 $ 617,370
REAL ESTATE
PERCENT OF NET ASSETS 0.11% 0.13%
Boston Properties Inc+ 0 $ -- 400 $ 11,925
Castle & Cooke Inc+ 215 3,789 136 2,397
Catellus Development Corp+ 0 -- 700 13,475
Echelon International Corp+ 68 1,552 53 1,216
Equity Office Properties+ 0 -- 300 8,756
</TABLE>
84
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.59% 0.69% 0.81%
1,361 $ 47,295 1,138 $ 39,545 2,264 $ 78,674
300 13,931 200 9,288 400 18,575
714 30,613 1,044 44,762 1,540 66,028
492 24,155 335 16,424 227 11,118
6,374 149,391 4,887 114,539 11,266 264,047
2,681 104,391 2,128 82,859 4,382 170,624
1,733 74,194 1,435 61,436 2,868 122,786
900 35,381 300 11,794 600 23,587
247 2,686 0 -- 0 --
2,583 251,681 2,067 201,403 4,490 437,494
244 5,490 0 -- 0 --
313 3,110 233 2,315 0 --
589 11,670 393 7,786 969 19,198
460 15,956 310 10,753 890 30,872
2,200 107,250 1,770 86,288 3,969 193,489
1,637 82,873 1,319 66,774 2,770 140,231
708 18,143 510 13,069 0 --
5,583 147,252 3,434 90,572 5,971 157,485
1,400 2,625 200 375 600 1,125
1,866 114,409 1,467 89,945 2,938 180,136
410 15,068 290 10,658 570 20,948
973 29,190 769 23,070 1,664 49,920
1,719 34,058 1,272 25,202 2,189 43,370
1,779 84,058 1,358 64,166 2,886 136,364
5,500 99,344 4,550 82,184 7,650 138,178
0 -- 580 8,773 1,015 15,352
1,800 53,213 1,500 44,344 2,200 65,038
300 8,325 300 8,325 600 16,650
200 6,850 200 6,850 400 13,700
1,777 90,072 1,370 69,442 2,874 145,676
80 33,660 33 13,885 125 52,594
------------ ------------ ------------
$ 1,696,334 $ 1,306,826 $ 2,613,259
$ 1,353,802 $ 1,037,136 $ 2,132,861
0.10% 0.15% 0.17%
0 $ -- 0 $ -- 800 $ 23,850
336 5,922 222 3,913 341 6,010
0 -- 0 -- 1,900 36,575
96 2,191 69 1,589 65 1,491
0 -- 0 -- 700 20,431
</TABLE>
85
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Equity Residential
Properties Trust 400 $ 19,475 600 $ 29,213
Franchise Finance Corp 0 -- 100 2,506
Health & Retire Property
Trust 600 10,875 1,100 19,938
Health Care Property
Investors Inc 300 11,156 400 14,875
Kimco Realty Corp 300 10,106 350 11,791
MAXXAM Inc+ 0 -- 0 --
Meditrust Corp 400 15,975 600 23,963
New Plan Realty Trust 400 9,400 700 16,450
Public Storage Inc 0 -- 700 19,644
Security Capital Pacific
Trust 600 13,088 500 10,906
Simon Debartolo Group Inc 300 9,506 700 22,181
Vornado Realty Trust 200 13,900 300 20,850
Weingarten Realty
Investments 200 8,313 300 12,469
------------ ------------
TOTAL REAL ESTATE
- VALUE $ 127,135 $ 242,555
- COST $ 99,784 $ 205,730
RETAIL & RELATED
PERCENT OF NET ASSETS 0.84% 2.07%
Anntaylor Stores Inc+ 247 $ 4,230 195 $ 3,339
AutoZone Inc+ 50 1,413 1,146 32,375
Bed Bath & Beyond Inc+ 400 12,400 500 15,500
Benetton Spa ADR (Italy) 4,836 141,755 10,192 298,753
Best Buy Co Inc+ 0 -- 100 1,700
BJ's Wholesale Club Inc+ 365 10,539 0 --
Borders Group Inc 0 -- 800 19,050
Charming Shoppes Inc+ 55 332 906 5,464
Circuit City Stores Inc 43 1,532 742 26,434
Coles Myer Ltd ADR
(Australia) 2,024 74,635 4,332 159,742
CompUSA Inc 0 -- 1,100 34,031
Consolidated Stores Corp 719 26,908 968 36,240
Corporate Express Inc 1,050 17,916 1,050 17,916
Costco Co Inc+ 206 7,429 1,527 55,067
Dayton-Hudson Corp 275 15,675 1,752 99,864
Department 56 Inc 200 5,463 200 5,462
Dillards Inc Class A 123 4,920 801 32,040
Dollar General Corp 490 20,304 1,035 42,888
Eastman Kodak Co 379 24,777 2,634 172,198
Edison Brothers Stores Inc+ 0 -- 0 --
Family Dollar Stores Inc 480 10,200 720 15,300
Federated Department Stores
Inc+ 150 6,300 1,514 63,588
Fingerhut Co 505 10,226 400 8,100
Footstar Inc+ 46 1,141 245 6,079
Gap Inc 308 13,687 2,224 98,829
</TABLE>
86
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
400 $ 19,475 700 $ 34,081 1,400 $ 68,163
0 -- 0 -- 200 5,013
800 14,500 1,000 18,125 2,600 47,125
400 14,875 500 18,594 700 26,031
450 15,159 500 16,844 700 23,581
128 7,040 0 -- 0 --
1,100 43,931 800 31,950 1,300 51,919
1,400 32,900 900 21,150 1,500 35,250
1,400 39,288 1,100 30,869 1,800 50,513
800 17,450 900 19,631 1,200 26,175
1,600 50,700 1,100 34,856 1,700 53,869
300 20,850 400 27,800 600 41,700
400 16,625 400 16,625 600 24,937
------------ ------------ ------------
$ 300,906 $ 276,027 $ 542,633
$ 255,459 $ 228,275 $ 468,328
2.86% 3.54% 4.26%
351 $ 6,011 253 $ 4,333 237 $ 4,059
2,769 78,224 2,224 62,828 4,677 132,125
800 24,800 800 24,800 1,100 34,100
20,410 598,268 17,236 505,230 30,420 891,686
0 -- 300 5,100 600 10,200
497 14,351 367 10,597 0 --
0 -- 1,000 23,813 1,700 40,481
1,882 11,351 1,545 9,318 2,302 13,884
1,785 63,591 1,404 50,017 2,918 103,954
8,775 323,578 7,432 274,055 13,040 480,850
0 -- 1,400 43,313 2,200 68,063
1,718 64,318 1,375 51,477 2,187 81,876
1,950 33,272 1,350 23,034 2,400 40,950
3,849 138,805 3,082 111,145 6,370 229,718
3,909 222,813 3,207 182,799 6,952 396,264
300 8,194 200 5,463 600 16,388
2,063 82,520 1,697 67,880 3,410 136,400
1,491 61,794 1,165 48,275 2,206 91,422
5,789 378,456 4,758 311,054 10,333 675,520
347 130 0 -- 0 --
1,285 27,306 940 19,975 1,642 34,887
3,856 161,952 3,072 129,024 6,290 264,180
714 14,459 509 10,307 180 3,645
521 12,927 382 9,478 654 16,227
4,920 218,633 4,019 178,594 8,838 392,739
</TABLE>
87
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Global DirectMail Corp+ 200 $ 4,400 200 $ 4,400
Hancock Fabrics Inc 0 -- 0 --
Heilig Meyers Co 524 7,860 410 6,150
Home Depot Inc 1,152 54,360 5,762 271,895
Homebase Inc 365 2,874 0 --
Intelligent Electronics+ 0 -- 0 --
Ito Yokado Co Ltd ADR
(Japan) 550 119,213 1,900 411,825
Jones Apparel Group Inc 400 20,075 400 20,075
Jostens Inc 105 2,533 263 6,345
K Mart Corp+ 384 5,328 3,661 50,796
Kohls Corp+ 286 19,716 620 42,741
Limited Inc 166 3,777 1,994 45,364
Longs Drug Stores Corp 74 1,873 332 8,404
Lowe's Co Inc 150 5,184 1,316 45,484
Lucasvarity PLC 37 1,172 448 14,196
Macfrugals Bargains Close-
outs+ 0 -- 0 --
May Department Stores Co 185 9,955 1,720 92,558
Mercantile Stores Co Inc 0 -- 324 20,230
Meyer (Fred) Inc+ 0 -- 200 10,400
Micro Warehouse Inc+ 300 7,838 300 7,838
Neiman Marcus Group Inc 0 -- 200 6,175
Newell Co 252 9,922 1,264 49,770
Nordstrom Inc 19 1,112 612 35,802
Office Depot Inc+ 1,538 28,357 1,550 28,578
Officemax Inc+ 1,000 14,813 1,250 18,516
Payless ShoeSource Inc+ 317 20,328 411 26,355
Penney (J C) Co Inc 145 8,700 1,857 111,420
PetSmart Inc+ 1,200 10,275 1,300 11,131
Rite Aid Corp 104 5,207 1,036 51,865
Ross Stores Inc 0 -- 600 17,625
Ruddick Corp 0 -- 0 --
Saks Holdings Inc 200 4,650 200 4,650
Sears Roebuck & Co 291 16,514 2,939 166,788
Service Merchandise Co+ 771 2,988 0 --
Sherwin Williams Co 154 4,225 1,245 34,160
Staples Inc+ 996 23,406 1,197 28,130
Sunglass Hut International
Inc+ 600 4,350 500 3,625
Talbots Inc 200 5,288 200 5,288
Tandy Corp 61 4,049 375 24,891
Tech Data Corp+ 0 -- 500 19,469
TJX Companies Inc 156 4,290 1,248 34,320
Toys R Us Inc+ 259 8,952 2,101 72,616
Viking Office Products Inc+ 800 16,900 1,000 21,125
Walgreen Co 660 17,779 3,976 107,104
</TABLE>
88
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
300 $ 6,600 200 $ 4,400 400 $ 8,800
342 4,275 0 -- 0 --
834 12,510 544 8,160 1,300 19,500
12,872 607,398 10,363 489,004 23,005 1,085,549
497 3,914 367 2,890 0 --
540 2,228 0 -- 0 --
3,825 829,069 2,950 639,413 6,150 1,333,013
600 30,113 600 30,113 900 45,169
650 15,681 538 12,979 1,237 29,843
8,928 123,876 6,989 96,972 14,581 202,311
1,004 69,213 908 62,595 1,358 93,617
4,944 112,476 3,973 90,386 8,211 186,800
754 19,086 542 13,719 795 20,123
3,224 111,429 2,568 88,756 5,144 177,789
982 31,117 738 23,385 1,204 38,152
438 11,935 0 -- 0 --
4,351 234,138 3,468 186,622 6,941 373,513
693 43,269 558 34,840 1,144 71,428
0 -- 0 -- 400 20,800
600 15,675 400 10,450 700 18,287
0 -- 400 12,350 500 15,438
2,845 112,022 2,273 89,499 5,086 200,261
1,426 83,421 1,208 70,668 2,358 137,943
2,442 45,024 1,967 36,267 3,380 62,319
2,700 39,994 1,950 28,884 3,050 45,178
743 47,645 615 39,437 1,004 64,382
4,511 270,660 3,578 214,680 7,243 434,580
2,200 18,838 1,600 13,700 3,000 25,688
2,293 114,793 1,714 85,807 3,915 195,995
0 -- 0 -- 1,300 38,188
714 10,710 524 7,860 0 --
1,200 27,900 300 6,975 600 13,950
7,193 408,203 5,746 326,086 11,575 656,881
1,516 5,875 1,111 4,305 0 --
3,188 87,471 2,494 68,429 5,305 145,556
2,163 50,831 2,040 47,940 2,957 69,490
1,000 7,250 700 5,075 1,300 9,425
0 -- 200 5,288 400 10,575
958 63,587 771 51,175 1,648 109,386
0 -- 700 27,256 1,100 42,831
2,764 76,010 2,190 60,225 5,042 138,655
5,284 182,628 4,213 145,612 8,578 296,477
2,000 42,250 1,400 29,575 2,100 44,363
8,968 241,575 7,104 191,364 15,816 426,044
</TABLE>
89
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
WalMart Stores Inc 3,252 $ 115,446 17,935 $ 636,691
Woolworth (F W) Co+ 81 1,812 990 22,151
------------ ------------
TOTAL RETAIL & RELATED
- VALUE $ 1,007,303 $ 3,846,905
- COST $ 842,141 $ 3,016,819
SERVICES
PERCENT OF NET ASSETS 0.09% 0.18%
Block (H R) Inc 111 $ 4,357 884 $ 34,697
CMS Energy Corp 921 33,098 740 26,594
Corrections Corp of America+ 600 22,200 800 29,600
CUC International Inc 515 12,103 3,355 78,831
Dun & Bradstreet Corp 173 4,844 1,462 40,936
Public Service Enterprise
Group 179 4,441 1,737 43,099
Service Corp International 198 6,336 1,811 57,952
Sotheby's Holdings Inc 611 11,571 0 --
Stewart Enterprises Inc
Class A 250 9,875 450 17,775
------------ ------------
TOTAL SERVICES
- VALUE $ 108,825 $ 329,484
- COST $ 92,639 $ 288,772
SHIPPING
PERCENT OF NET ASSETS 0.01% 0.00%
Halter Marine Group Inc+ 182 $ 7,200 188 $ 7,438
------------ ------------
TOTAL SHIPPING
- VALUE $ 7,200 $ 7,438
- COST $ 3,161 $ 3,322
TELECOMMUNICATIONS
PERCENT OF NET ASSETS 1.81% 3.88%
360 Communications Co+ 1,525 $ 28,022 1,519 $ 27,912
ADC Telecommunications 1,072 39,798 1,460 54,203
Adtran Inc+ 100 3,900 200 7,800
Advanced Fibre
Communication+ 0 -- 100 6,225
Airtouch Communications+ 388 13,119 3,756 127,000
Alcatel Alsthom Compagnie
Generale d'electricite ADR
(France) 10,035 247,112 21,673 533,698
Aliant Communications Inc 0 -- 0 --
Alltel Corp 121 3,827 1,358 42,947
Ameritech Corp 833 52,219 4,319 270,747
Andrew Corp 156 3,881 726 18,047
Ascend Communications Inc+ 1,150 48,803 1,800 76,388
Aspect Telecommunication
Corp 0 -- 600 13,200
AT & T Corp 1,245 48,555 12,000 468,000
Bell Atlantic Corp 659 47,719 6,018 435,535
</TABLE>
90
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
40,183 $ 1,426,496 32,259 $ 1,145,195 71,485 $ 2,537,718
2,542 56,877 2,014 45,063 4,003 89,567
------------ ------------ ------------
$ 8,249,815 $ 6,715,308 $ 13,695,202
$ 6,424,720 $ 5,178,441 $ 11,164,775
0.25% 0.30% 0.35%
1,880 $ 73,790 1,468 $ 57,619 3,330 $ 130,702
1,314 47,222 954 34,284 885 31,805
1,400 51,800 1,200 44,400 1,800 66,600
7,395 173,783 5,749 135,090 13,125 308,438
3,170 88,760 2,421 67,788 5,545 155,260
4,211 104,485 3,350 83,122 7,010 173,936
4,360 139,520 3,466 110,912 7,225 231,200
848 16,059 623 11,798 0 --
750 29,625 600 23,700 900 35,550
------------ ------------ ------------
$ 725,044 $ 568,713 $ 1,133,491
$ 620,576 $ 491,385 $ 1,061,020
0.00% 0.00% 0.01%
246 $ 9,732 221 $ 8,743 420 $ 16,616
------------ ------------ ------------
$ 9,732 $ 8,743 $ 16,616
$ 4,327 $ 3,870 $ 7,435
5.39% 6.62% 7.71%
2,624 $ 48,216 2,128 $ 39,102 3,954 $ 72,655
2,896 107,514 1,916 71,132 3,420 126,968
200 7,800 200 7,800 400 15,600
0 -- 0 -- 100 6,225
9,259 313,070 7,337 248,082 14,784 499,884
42,698 1,051,439 36,113 889,293 63,401 1,561,247
490 11,086 0 -- 0 --
3,417 108,063 2,706 85,577 5,654 178,808
9,766 612,206 7,854 492,348 17,309 1,085,058
1,568 39,004 1,252 31,131 3,035 75,483
2,700 114,581 2,510 106,518 4,160 176,540
0 -- 0 -- 1,100 24,200
29,918 1,166,801 23,706 924,534 48,161 1,878,279
14,320 1,036,429 11,338 820,624 23,057 1,668,756
</TABLE>
91
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
BellSouth Corp 838 $ 36,872 7,333 $ 322,652
British Telecommunications
PLC ADR (UK) 3,200 207,000 6,700 433,406
Century Telephone Enterprise 567 20,589 460 16,704
Ciena Corporation+ 0 -- 500 23,875
Comsat Corp 510 11,061 600 13,013
Cox Communications Inc Class
A+ 613 16,589 674 18,240
DSC Communications Corp+ 121 3,524 899 26,183
DSP Communications Inc 0 -- 500 9,625
Excel Communication Inc+ 400 8,750 400 8,750
Federal Signal Corp 498 12,948 590 15,340
Frontier Corp 83 1,831 1,230 27,137
Glenayre Technologies Inc 650 11,375 650 11,375
GTE Corp 1,326 59,090 7,539 335,957
Hong Kong Telecommunications
Ltd ADR (Hong Kong) 19,353 410,042 42,803 906,888
ITT Corp+ 131 8,228 1,032 64,823
K-III Communications Corp+ 0 -- 200 2,438
LCI International Inc+ 300 7,200 300 7,200
Loral Space &
Communications+ 1,242 21,735 1,882 32,935
Lucent Technologies Inc 942 73,358 5,082 395,761
MCI Communications Corp 565 16,103 5,103 145,435
McLeod Inc Class A+ 0 -- 200 6,775
Mobile Telecommunications
Tech+ 0 -- 400 4,900
NEXTEL Communications Class
A+ 1,068 26,767 880 22,055
Nippon Telegraph & Telegraph
ADR (Japan) 1,836 86,292 6,811 320,117
Northern Telecom Ltd 290 28,746 2,077 205,883
Octel Communications+ 0 -- 600 18,225
Omnipoint Corp+ 200 4,188 300 6,281
Paging Network Inc+ 500 5,063 600 6,075
Pairgain Technologies Inc 0 -- 600 15,450
Picturetel Corp+ 400 5,000 400 5,000
Qualcom Inc+ 500 23,125 600 27,750
SBC Communication Inc 1,214 66,011 7,249 394,164
Scientific-Atlanta Inc 82 1,783 551 11,984
Southern New England
Telecommunications Co 687 26,278 550 21,038
Sprint Corp 377 17,719 3,140 147,580
Telecommunications of New
Zealand Corp ADR (New
Zealand) 1,600 62,800 3,200 125,600
Telefonica de Espana SA
(Spain) 2,150 167,163 4,500 349,875
Telephone & Data System Inc 566 22,357 450 17,775
Teleport Communications
Group Inc Class A+ 300 10,913 300 10,913
Tellabs Inc 250 14,922 1,405 83,861
</TABLE>
92
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
18,315 $ 805,860 14,480 $ 637,120 29,230 $ 1,286,120
13,500 873,281 11,350 734,203 20,050 1,296,984
828 30,067 588 21,352 565 20,517
0 -- 0 -- 1,200 57,300
819 17,762 814 17,654 1,290 27,977
1,294 35,019 927 25,087 1,649 44,626
2,221 64,687 1,691 49,250 3,558 103,627
0 -- 600 11,550 1,000 19,250
1,800 39,375 500 10,938 700 15,313
807 20,982 802 20,852 1,180 30,680
3,072 67,776 2,337 51,560 5,071 111,879
1,175 20,563 800 14,000 1,425 24,938
16,901 753,151 13,544 603,554 30,134 1,342,846
81,936 1,736,018 69,241 1,467,044 119,553 2,533,029
2,097 131,718 1,658 104,143 3,459 217,268
1,800 21,938 0 -- 400 4,875
600 14,400 500 12,000 900 21,600
2,912 50,960 2,974 52,045 4,566 79,905
11,353 884,115 9,107 709,208 20,170 1,570,739
12,607 359,300 10,063 286,796 20,240 576,840
0 -- 200 6,775 400 13,550
0 -- 0 -- 0 --
1,588 39,799 1,101 27,594 1,025 25,689
13,543 636,521 10,406 489,082 21,774 1,023,378
4,567 452,704 3,737 370,430 8,184 811,239
730 22,174 840 25,515 1,200 36,450
400 8,375 400 8,375 600 12,563
1,500 15,188 800 8,100 1,500 15,188
1,100 28,325 700 18,025 1,100 28,325
700 8,750 500 6,250 800 10,000
1,000 46,250 900 41,625 1,400 64,750
16,145 877,884 12,971 705,298 28,826 1,567,414
1,482 32,234 1,110 24,143 2,336 50,808
975 37,294 710 27,158 680 26,010
7,898 371,206 6,331 297,557 12,622 593,234
6,550 257,087 5,600 219,800 9,800 384,650
9,000 699,750 7,600 590,900 13,350 1,037,962
827 32,667 587 23,187 565 22,318
2,600 94,575 400 14,550 3,300 120,038
3,236 193,149 2,627 156,799 5,811 346,844
</TABLE>
93
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
U.S. West Inc 344 $ 12,320 3,539 $ 126,740
Vanguard Cellular Systems
Class A+ 411 6,011 330 4,826
Vodafone Group PLC ADR (UK) 1,650 84,047 3,500 178,281
Western Wireless Corp Class
A+ 0 -- 100 1,506
WorldCom Inc+ 706 21,136 6,628 198,426
------------ ------------
TOTAL TELECOMMUNICATIONS
- VALUE $ 2,155,891 $ 7,210,519
- COST $ 1,857,327 $ 6,030,648
TEXTILES
PERCENT OF NET ASSETS 0.06% 0.04%
Brown Group Inc 31 $ 517 180 $ 3,004
Burlington Industries Inc+ 729 8,794 477 5,754
Cintas Corp 310 21,623 300 20,925
Shaw Industries Inc 1,260 14,096 1,330 14,879
Springs Industries Inc Class
A 31 1,457 186 8,742
Unifi Inc 568 21,797 600 23,025
------------ ------------
TOTAL TEXTILES
- VALUE $ 68,284 $ 76,329
- COST $ 55,610 $ 65,376
TOBACCO
PERCENT OF NET ASSETS 0.28% 0.68%
BAT Industries PLC ADR (UK) 8,400 $ 143,325 17,800 $ 303,712
Fortune Brands Inc 153 5,259 1,243 42,728
Gallaher Group PLC ADR (UK)+ 153 2,744 1,391 24,951
Imperial Tobacco Group ADR
(UK) 2,137 26,755 3,975 49,767
Philip Morris Co Inc 3,578 156,090 19,273 840,784
------------ ------------
TOTAL TOBACCO
- VALUE $ 334,173 $ 1,261,942
- COST $ 303,364 $ 977,388
TRANSPORTATION
PERCENT OF NET ASSETS 0.17% 0.44%
Alexander & Baldwin Inc 504 $ 13,608 590 $ 15,930
Burlington Northern Santa Fe 89 8,160 1,147 105,166
Caliber Systems Inc 0 -- 278 11,607
Carnival Corp Class A 0 -- 1,200 52,575
CNF Transportation Inc 62 2,240 361 13,041
Consolidated Freightways
Corp+ 31 484 181 2,820
CSX Corp 168 9,608 1,621 92,701
Dial Corp 136 2,295 1,080 18,225
Federal Express Corp 46 3,056 823 54,678
Fritz Companies Inc+ 200 2,600 200 2,600
Hunt (J B) Transport
Services 0 -- 0 --
</TABLE>
94
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
8,849 $ 316,905 6,959 $ 249,219 14,089 $ 504,562
595 8,702 427 6,245 390 5,704
7,000 356,563 5,900 300,531 10,400 529,750
0 -- 0 -- 300 4,519
16,406 491,155 13,035 390,235 26,278 786,683
------------ ------------ ------------
$ 15,570,438 $ 12,551,890 $ 24,777,644
$ 12,961,823 $ 10,511,886 $ 21,852,088
0.06% 0.07% 0.06%
338 $ 5,640 221 $ 3,688 253 $ 4,222
1,136 13,703 749 9,035 1,902 22,943
820 57,195 515 35,921 790 55,103
2,415 27,018 2,005 22,431 3,000 33,563
384 18,048 305 14,335 420 19,740
1,182 45,359 982 37,684 1,440 55,260
------------ ------------ ------------
$ 166,963 $ 123,094 $ 190,831
$ 133,999 $ 100,714 $ 166,508
0.95% 1.17% 1.44%
35,750 $ 609,984 30,250 $ 516,141 53,200 $ 907,725
3,121 107,284 2,471 84,941 5,129 176,309
3,016 54,100 2,266 40,646 3,545 63,588
7,743 96,943 6,112 76,523 10,312 129,107
43,124 1,881,284 34,574 1,508,291 76,652 3,343,943
------------ ------------ ------------
$ 2,749,595 $ 2,226,542 $ 4,620,672
$ 2,124,344 $ 1,691,470 $ 3,702,649
0.59% 0.71% 0.84%
814 $ 21,978 809 $ 21,843 1,180 $ 31,860
2,872 263,327 2,274 208,497 4,596 421,396
692 28,891 568 23,714 1,156 48,263
0 -- 0 -- 2,900 127,056
810 29,261 573 20,700 1,138 41,110
405 6,328 286 4,469 569 8,891
4,024 230,122 3,227 184,544 6,543 374,178
1,641 27,692 1,228 20,723 2,208 37,260
2,077 137,991 1,630 108,293 3,409 226,485
300 3,900 0 -- 400 5,200
596 9,909 0 -- 0 --
</TABLE>
95
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Illinois Central Corp 411 $ 13,794 690 $ 23,158
Kansas City Southern
Industries 281 21,040 370 27,704
Laidlaw Inc Class B 281 4,110 2,439 35,670
Norfolk Southern Corp 92 9,016 947 92,806
Outboard Marine Corp 35 626 184 3,289
Overseas Shipholding Group 393 9,653 310 7,614
Pittston Brink's Group 523 18,567 520 18,460
Pittston Burlington Group 61 1,464 160 3,840
Roadway Express Inc 46 1,058 158 3,634
Tidewater Inc 565 29,663 650 34,125
Trinity Industries Inc 522 20,750 540 21,465
Union Pacific Corp 157 10,195 1,834 119,095
Viad Corp 136 2,474 1,080 19,643
Wisconsin Central Transport+ 400 12,400 600 18,600
Xtra Corp 200 9,388 200 9,388
Yellow Corp+ 49 1,537 223 6,997
------------ ------------
TOTAL TRANSPORTATION
- VALUE $ 207,786 $ 814,831
- COST $ 155,761 $ 635,796
UTILITIES
PERCENT OF NET ASSETS 0.72% 1.07%
Allegheny Power Systems Inc 1,284 $ 37,316 1,010 $ 29,353
American Electric Power Inc 98 4,281 1,370 59,852
American Water Works Co Inc 600 12,450 700 14,525
Atlantic Energy Inc 569 9,851 460 7,964
Baltimore Gas & Electric Co 131 3,537 1,117 30,159
BG PLC ADR (UK) 3,200 138,800 6,700 290,613
Calenergy Inc+ 500 16,563 500 16,563
Carolina Power & Light Co 156 5,265 1,118 37,733
Central & South West Corp 131 2,710 1,609 33,286
Cinergy Corp 120 3,968 1,161 38,386
Consolidated Edison Co 235 7,197 1,744 53,410
Delmarva Power & Light Co 640 11,480 510 9,148
Dominion Resources Inc 170 6,120 1,366 49,176
DTE Energy Co 132 3,911 1,068 31,640
Duke Power Co 236 11,431 2,637 127,730
Edison International 310 7,479 3,066 73,967
Entergy Corp 229 5,682 1,735 43,050
Florida Progress Corp 1,015 32,670 800 25,750
FPL Group Inc 133 6,185 1,351 62,822
GPU Inc 137 4,607 921 30,969
Hawaiian Electric Industries
Inc 392 14,186 340 12,304
Houston Industries Inc 222 4,500 1,898 38,438
</TABLE>
96
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,135 $ 38,093 1,015 $ 34,066 1,502 $ 50,411
765 57,279 585 43,802 760 56,905
6,001 87,765 4,716 68,972 9,510 139,084
2,289 224,322 1,791 175,518 3,693 361,914
424 7,579 224 4,004 348 6,220
550 13,509 405 9,948 375 9,211
657 23,323 743 26,377 1,104 39,192
328 7,872 221 5,304 402 9,648
270 6,210 243 5,589 359 8,257
925 48,563 985 51,713 1,465 76,913
705 28,024 635 25,241 1,105 43,924
4,555 295,790 3,580 232,476 7,257 471,251
1,641 29,846 1,428 25,972 2,208 40,158
1,200 37,200 900 27,900 1,300 40,300
300 14,081 200 9,388 500 23,469
585 18,354 299 9,381 437 13,711
------------ ------------ ------------
$ 1,697,209 $ 1,348,434 $ 2,712,267
$ 1,256,603 $ 1,004,941 $ 2,295,427
1.52% 1.86% 1.99%
1,809 $ 52,574 1,319 $ 38,333 1,230 $ 35,747
3,510 153,343 2,715 118,612 5,730 250,329
800 16,600 1,000 20,750 1,700 35,275
830 14,369 590 10,214 550 9,522
2,721 73,467 2,184 58,968 4,460 120,420
13,100 568,213 11,350 492,306 20,050 869,669
900 29,813 900 29,813 1,400 46,375
2,771 93,521 2,174 73,373 4,522 152,617
4,006 82,874 3,125 64,648 6,352 131,407
2,929 96,840 2,334 77,168 4,773 157,807
4,296 131,565 3,399 104,094 7,093 217,223
903 16,198 648 11,623 615 11,032
3,417 123,012 2,716 97,776 5,526 198,936
2,697 79,899 2,143 63,486 4,400 130,350
6,664 322,788 5,291 256,283 10,550 511,016
7,488 180,648 5,931 143,085 12,373 298,499
4,332 107,488 3,461 85,876 7,140 177,161
1,434 46,157 1,039 33,443 980 31,544
3,361 156,286 2,700 125,550 5,509 256,169
2,220 74,647 1,795 60,357 3,582 120,445
423 15,307 403 14,584 780 28,226
5,379 108,922 4,277 86,602 8,188 165,802
</TABLE>
97
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Idaho Power Co 402 $ 12,713 320 $ 10,120
Illinova Corp 813 18,699 650 14,950
IPALCO Enterprises Inc 607 19,765 480 15,630
Kansas City Power & Light Co 667 19,093 530 15,171
LG & E Energy Corp 728 16,471 560 12,670
Midamerican Energy Co 451 7,695 367 6,262
Minnesota Power & Light Co 349 11,997 270 9,281
Montana Power Co 563 12,984 460 10,609
Nevada Power Co 444 9,380 360 7,605
New Century Energies Inc 1,072 43,296 863 34,823
New England Electric System 695 26,584 560 21,420
New York State Electric &
Gas Corp 772 18,817 610 14,869
Niagara Mohawk Power Corp 125 1,117 1,135 10,144
NIPSCO Industries Inc 702 28,650 560 22,855
Northeast Utilities 1,340 13,484 1,070 10,767
Northern States Power Co 67 3,224 509 24,496
OGE Energy Corp 429 19,064 340 15,109
Ohio Edison Co 143 3,146 1,130 24,860
Pacificorp 194 4,026 2,168 44,986
PECO Energy Co 213 5,072 1,694 40,338
PG & E Corp 373 8,649 3,075 71,302
Pinnacle West Capital Corp 941 30,406 750 24,234
Potomac Electric Power Co 1,282 29,085 1,010 22,914
PP & L Resources Inc 150 3,291 1,200 26,325
Public Service Company Of
New Mexico 0 -- 0 --
Puget Sound Power & Light Co 683 17,331 540 13,703
SCANA Corp 1,026 24,752 820 19,783
Southern Co 586 12,343 5,080 106,997
TECO Energy Inc 1,265 30,439 990 23,822
Texas Utilities Co 241 8,394 1,863 64,973
U.S. Filter Corp 0 -- 800 28,852
Unicom Corp 199 4,701 1,653 39,052
Union Electric Co 104 3,868 753 28,002
Wisconsin Energy Corp 1,148 29,357 920 23,518
Wisconsin Power & Light
Holdings Co 341 9,441 260 7,199
------------ ------------
TOTAL UTILITIES
- VALUE $ 857,523 $ 1,984,479
- COST $ 729,641 $ 1,842,752
</TABLE>
98
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
585 $ 18,501 415 $ 13,124 385 $ 12,176
1,153 26,519 843 19,389 780 17,940
882 28,720 627 20,417 577 18,789
955 27,337 690 19,751 645 18,463
992 22,444 732 16,562 690 15,611
680 11,602 489 8,344 0 --
480 16,500 350 12,031 335 11,516
824 19,004 584 13,469 540 12,454
652 13,774 472 9,971 450 9,506
1,535 61,982 1,123 45,337 1,029 41,556
1,008 38,556 718 27,464 690 26,393
1,087 26,496 787 19,183 740 18,038
2,681 23,961 2,082 18,608 4,288 38,324
1,015 41,425 740 30,201 675 27,548
1,916 19,280 1,386 13,947 1,290 12,981
1,272 61,267 990 47,644 2,061 99,186
612 27,196 442 19,641 415 18,442
2,867 63,074 2,188 48,136 4,641 102,102
5,407 112,195 4,303 89,287 8,920 185,090
4,084 97,250 3,271 77,891 6,746 160,639
8,020 185,964 6,435 149,212 12,948 300,232
1,334 43,105 974 31,472 905 29,243
1,806 40,974 1,316 29,857 1,230 27,906
3,116 68,357 2,405 52,760 4,975 109,139
650 11,863 470 8,578 0 --
971 24,639 706 17,915 655 16,621
1,446 34,885 1,036 24,994 980 23,643
12,467 262,586 9,960 209,782 20,116 423,693
1,789 43,048 1,284 30,896 1,220 29,356
4,717 164,514 3,764 131,258 7,418 258,710
0 -- 900 32,431 1,700 61,200
3,970 93,791 3,129 73,923 6,525 154,153
1,933 71,883 1,536 57,120 3,048 113,348
1,645 42,050 1,175 30,036 1,105 28,247
473 13,096 343 9,497 325 8,998
------------ ------------ ------------
$ 4,402,369 $ 3,527,072 $ 6,386,814
$ 4,051,470 $ 3,245,860 $ 6,066,464
</TABLE>
99
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------
WARRANTS
PERCENT OF NET ASSETS 0.00% 0.00%
Homestead Village Inc
expires
10/29/1997+ 1 $ 4 0 $ --
Morrison Knudsen Corp
expires 03/11/2003+ 4 21 17 87
------------ ------------
TOTAL WARRANTS
- VALUE $ 25 $ 87
- COST $ 22 $ 74
TOTAL COMMON STOCKS
- VALUE $ 25,672,641 $ 85,678,455
- COST $ 19,573,402 $ 63,837,421
</TABLE>
100
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.00% 0.00% 0.00%
0 $ 3 1 $ 7 0 $ 4
27 138 25 128 42 215
------------ ------------ ------------
$ 141 $ 135 $ 219
$ 118 $ 114 $ 184
$187,514,708 $149,412,073 $300,598,260
$137,259,050 $108,903,758 $238,098,066
</TABLE>
101
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
U.S. TREASURY SECURITIES
PERCENT OF NET ASSETS 69.91% 47.86%
U.S. TREASURY BONDS
PERCENT OF NET ASSETS 1.14% 2.75%
U.S. Treasury Bonds, 6.00%-
13.88%, 11/15/07-2/15/27 $ 1,200,000 $ 1,359,250 $ 4,550,000 $ 5,098,781
------------ ------------
TOTAL U.S. TREASURY BONDS
- VALUE $ 1,359,250 $ 5,098,781
-COST $ 1,339,641 $ 4,973,319
U.S. TREASURY NOTES
PERCENT OF NET ASSETS 68.77% 45.11%
U.S. Treasury Notes, 3.41%-
13.75%, 09/30/98-05/15/07 $79,250,000 $ 82,096,541 $81,150,000 $ 83,763,708
------------ ------------
TOTAL U.S. TREASURY NOTES
- VALUE $ 82,096,541 $ 83,763,708
-COST $ 81,694,375 $ 83,357,724
TOTAL U.S. TREASURY
SECURITIES
- VALUE $ 83,455,791 $ 88,862,489
-COST $ 83,034,016 $ 88,331,043
</TABLE>
102
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
31.21% 18.56% 5.73%
8.65% 15.69% 5.73%
$21,850,000 $ 25,004,919 $25,640,000 $ 29,746,507 $16,350,000 $ 18,424,983
------------ ------------ ------------
$ 25,004,919 $ 29,746,507 $ 18,424,983
$ 24,658,540 $ 29,156,182 $ 18,013,766
22.56% 2.87% 0.00%
$63,170,000 $ 65,199,547 $ 5,300,000 $ 5,450,233 $ 0 $ 0
------------ ------------ ------------
$ 65,199,547 $ 5,450,233 $ --
$ 65,000,299 $ 5,432,156 $ --
$ 90,204,466 $ 35,196,740 $ 18,424,983
$ 89,658,839 $ 34,588,338 $ 18,013,766
</TABLE>
103
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ -------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS
PERCENT OF NET ASSETS 7.49% 5.37%
U.S. Treasury Bills, 2.59-
4.97%++,
09/04/97-11/28/97* $ 8,993,000 $ 8,940,758 $ 10,029,000 $ 9,969,132
------------ ------------
TOTAL U.S. TREASURY BILLS
- VALUE $ 8,940,758 $ 9,969,132
-COST $ 8,936,679 $ 9,964,771
CASH EQUIVALENTS
PERCENT OF NET ASSETS 9.51% 3.75%
Dreyfus Cash Management
Fund# $ 3,226,300 $ 3,226,300 $ 1,962,363 $ 1,962,363
Janus Institutional Money
Market Fund# 4,120,000 4,120,000 3,000,000 3,000,000
Merrimac Premium Money
Market# 4,000,000 4,000,000 2,000,000 2,000,000
------------ ------------
TOTAL CASH EQUIVALENTS
- VALUE $ 11,346,300 $ 6,962,363
-COST $ 11,346,300 $ 6,962,363
</TABLE>
104
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
3.30% 2.30% 0.52%
$ 9,607,000 $ 9,554,224 $ 4,397,000 $ 4,362,138 $ 1,686,000 $ 1,675,443
------------ ------------ ------------
$ 9,554,224 $ 4,362,138 $ 1,675,443
$ 9,550,139 $ 4,359,892 $ 1,674,626
4.44% 2.80% 6.03%
$ 1,850,117 $ 1,850,117 $ 313,971 $ 313,971 $ 394,414 $ 394,414
6,000,000 6,000,000 3,000,000 3,000,000 10,000,000 10,000,000
5,000,000 5,000,000 2,000,000 2,000,000 9,000,000 9,000,000
------------ ------------ ------------
$ 12,850,117 $ 5,313,971 $ 19,394,414
$ 12,850,117 $ 5,313,971 $ 19,394,414
</TABLE>
105
<PAGE>
MASTER INVESTMENT PORTFOLIO--AUGUST 31, 1997 (UNAUDITED)
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------- -------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS
PERCENT OF NET ASSETS 4.19% 4.85%
Goldman Sachs Repurchase
Agreements#, dated
8/29/97, due 9/3/97,
with a maturity value
of 52,000,000 and an
effective yield of
5.67%, collateralized
by Federal National
Mortgage Association
obligations with rates
ranging from 6.07% to
7.01%, with maturity
dates ranging from
10/1/32 to 8/1/36 and
with an aggregate
market value of
53,040,000. $ 5,000,000 $ 5,000,000 $ 9,000,000 $ 9,000,000
------------ ------------
TOTAL SHORT-TERM
INSTRUMENTS
- VALUE $ 25,287,058 $25,931,495
-COST $ 25,282,979 $25,927,134
------------ ------------
TOTAL INVESTMENT IN
SECURITIES
(NOTES 1 AND 3) - VALUE $134,415,490 $200,472,439
-COST** $127,890,397 $178,095,598
------------ ------------
TOTAL INVESTMENT IN
SECURITIES 112.61% $134,415,490 107.98% $200,472,439
Other Assets and
Liabilities, Net (12.61)% (15,049,441) (7.98)% (14,820,834)
----------- ------------ ----------- ------------
TOTAL NET ASSETS 100.00% $119,366,049 100.00% $185,651,605
=========== ============ =========== ============
- --------------------------------------------------------------------------------
+ Non-income earning securities.
++ Yield to maturity.
# Represents collateral received from securities learning transactions. See
Note 4.
* These U.S. Treasury Bills are held in segrated accounts in connection with
the Fund's holdings of S&P 500 Futures Contracts.
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
Gross Unrealized
Appreciation $ 7,464,198 $ 23,997,148
Gross Unrealized
Depreciation (939,105) (1,620,307)
------------ ------------
GROSS UNREALIZED
APPRECIATION $ 6,525,093 $ 22,376,841
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
106
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------- -------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
4.85% 4.75% 4.67%
$14,000,000 $ 14,000,000 $ 9,000,000 $ 9,000,000 $15,000,000 $ 15,000,000
------------ ------------ ------------
$ 36,404,341 $ 18,676,109 $ 36,069,857
$ 36,400,256 $ 18,673,863 $ 36,069,040
------------ ------------ ------------
$314,123,515 $203,284,922 $355,093,100
$263,318,145 $162,165,959 $292,180,872
------------ ------------ ------------
108.73% $314,123,515 107.21% $203,284,922 110.45% $355,093,100
(8.73)% (25,221,460) (7.21)% $(13,667,649) (10.45)% (33,605,911)
- ----------- ------------ ------------ ------------ ----------- ------------
100.00% $288,902,055 100.00% $189,617,273 100.00% $321,487,189
=========== ============ ============ ============ =========== ============
$ 53,881,729 $ 43,323,833 $ 67,105,680
(3,076,359) (2,204,870) (4,193,458)
------------ ------------ ------------
$ 50,805,370 $ 41,118,963 $ 62,912,228
============ ============ ============
</TABLE>
107
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
AUGUST 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Life Path LifePath
2000 2010
Master Master
Portfolio Portfolio
- ----------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see cost below)
(Note 1) $ 134,415,490 $ 200,472,439
Cash 975 53
RECEIVABLES:
Dividends and interest 1,344,830 1,413,140
TOTAL ASSETS 135,761,295 201,885,632
LIABILITIES
Payables:
Collateral for securities loaned (Note 4) 16,346,300 15,962,363
Due to BGI (Note 4) 48,946 271,664
TOTAL LIABILITIES 16,395,246 16,234,027
TOTAL NET ASSETS $ 119,366,049 $ 185,651,605
INVESTMENTS AT COST $ 127,890,397 $ 178,095,598
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
108
<PAGE>
STATEMENT OF ASSETS & LIABILITIES AUGUST 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Master Master Master
Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 314,123,515 $ 203,284,922 $ 355,093,100
492 832 751
1,769,753 739,903 945,895
315,893,760 204,025,657 356,039,746
26,850,117 14,313,971 34,394,414
141,588 94,413 158,143
26,991,705 14,408,384 34,552,557
$ 288,902,055 $ 189,617,273 $ 321,487,189
$ 263,318,145 $ 162,165,959 $ 292,180,872
- ------------------------------------------------------------------------------------------------
</TABLE>
109
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 282,768 $ 845,227
Interest+ 2,916,482 2,920,941
TOTAL INVESTMENT INCOME 3,199,250 3,766,168
EXPENSES (NOTE 2)
Advisory Fees 339,193 486,389
TOTAL EXPENSES 339,193 486,389
NET INVESTMENT INCOME 2,860,057 3,279,779
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain (loss) on sale of
investments 1,924,950 3,360,595
Net realized gain (loss) on sale of futures
contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 2,070,882 7,864,187
Net change in unrealized appreciation
(depreciation) in financial futures
contracts 0 0
NET GAIN (LOSS) ON INVESTMENTS 3,995,832 11,224,782
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 6,855,889 $14,504,561
- ------------------------------------------------------------------------------
+ Interest income includes security lending
income of: $ 15,464 $ 24,420
</TABLE>
The accompanying notes are an integral part of these financial statements.
110
<PAGE>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED AUGUST 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
Master Portfolio Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------------------
<S> <C> <C>
$ 1,781,306 $ 1,390,797 $ 2,583,579
2,996,920 1,278,759 876,769
4,778,226 2,669,556 3,460,348
740,368 477,215 794,878
740,368 477,215 794,878
4,037,858 2,192,341 2,665,470
4,285,729 1,988,078 13,043,902
0 0 14,539
19,072,996 15,423,729 19,852,580
0 0 (52,500)
23,358,725 17,411,807 32,858,521
$ 27,396,583 $ 19,604,148 $ 35,523,991
- -------------------------------------------------------------------------------------------
$ 45,183 $ 33,284 $ 59,325
</TABLE>
111
<PAGE>
STATEMENTS IN CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2000 Master Portfolio
-----------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28, 1997
(Unaudited)
- ---------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 2,860,057 $ 5,769,457
Net realized gain (loss) on sale of
investments 1,924,950 2,894,777
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 2,070,882 (273,099)
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,855,889 8,391,135
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTERESTS
TRANSACTIONS (18,762,838) 6,204,037
INCREASE (DECREASE) IN NET ASSETS (11,906,949) 14,595,172
NET ASSETS:
Beginning net assets 131,272,998 116,677,826
ENDING NET ASSETS $ 119,366,049 $ 131,272,998
- ---------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
112
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2010 Master Portfolio LifePath 2020 Master Portfolio
- ------------------------------------- ----------------------------------------
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
August 31, 1997 February 28, 1997 August 31, 1997 February 28, 1997
(Unaudited) (Unaudited)
- -----------------------------------------------------
<S> <C> <C> <C>
$ 3,279,779 $ 5,182,306 $ 4,037,858 $ 6,271,633
3,360,595 3,439,818 4,285,729 9,487,619
0 0 0 0
7,864,187 5,149,907 19,072,996 11,374,656
0 0 0 0
14,504,561 13,772,031 27,396,583 27,133,908
1,636,124 54,517,689 10,062,839 61,750,732
16,140,685 68,289,720 37,459,422 88,884,640
169,510,920 101,221,200 251,442,633 162,557,993
$ 185,651,605 $ 169,510,920 $ 288,902,055 $ 251,442,633
- ----------------------------------------------------------------------------------
</TABLE>
113
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2030 Master Portfolio
----------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28, 1997
(Unaudited)
- ---------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 2,192,341 $ 3,210,760
Net realized gain (loss) on investments 1,988,078 5,108,662
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 15,423,729 10,036,726
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 19,604,148 18,356,148
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTERESTS
TRANSACTIONS 11,208,292 32,210,346
NET INCREASE (DECREASE) IN NET ASSETS 30,812,440 50,566,494
NET ASSETS:
Beginning net assets 158,804,833 108,238,339
ENDING NET ASSETS $ 189,617,273 $ 158,804,833
- ---------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
114
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2040 Master Portfolio
- ------------------------------------------------------------------------------
For the For the
Six Months Ended Year Ended
August 31, 1997 February 28, 1997
(Unaudited)
- -------------------------
<S> <C>
$ 2,665,470 $ 3,953,444
13,043,902 14,697,190
14,539 35,620
19,852,580 17,501,172
(52,500) 92,625
35,523,991 36,280,051
27,878,470 45,783,771
63,402,461 82,063,822
258,084,728 176,020,906
$ 321,487,189 $ 258,084,728
- ------------------------------------------------------------------------------
</TABLE>
115
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Master Investment Portfolio ("MIP") is registered under the Investment Com-
pany Act of 1940, as amended (the "1940 Act"), as an open-end management in-
vestment company. MIP was organized on October 20, 1993 as a Delaware business
trust pursuant to an Agreement and Declaration of Trust dated May 14, 1993 and
had no operations prior to May 26, 1994. MIP currently issues the following
separate portfolios (the "Master Portfolios"): the Asset Allocation, Bond In-
dex, LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040,
S&P 500 Index and U.S. Treasury Allocation Master Portfolios. The financial
statements for the Asset Allocation, Bond Index, S&P 500 Index and U.S. Trea-
sury Allocation Master Portfolios are presented separately.
The following significant accounting policies are consistently followed by
MIP in the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting prin ciples for investment compa-
nies. The preparation of financial statements in conformity with generally ac-
cepted accounting principles requires management to make estimates and assump-
tions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
INVESTMENT POLICY AND SECURITY VALUATION
Each Master Portfolio 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 in-
struments. The equity securities of the Master Portfolios are valued at the
last reported sale price on the primary securities exchange or national securi-
ties market on which such securities are traded. Securities not listed on an
exchange or national securities market, or securities in which there was no
last reported sales price, are valued at the most recent bid prices. Debt secu-
rities maturing in 60 days or less are valued at amortized cost, which approxi-
mates market value.
Debt securities, other than those maturing in 60 days or less, are valued at
the latest quoted bid price. Any securities, restricted securi-
116
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
ties or other assets for which market quotations are not readily available, are
valued at fair value as determined in good faith in accordance with policies
approved by MIP's Board of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on the date the securities are pur-
chased 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 de-
livered. Bond discounts and premiums are amortized as required by the Internal
Revenue Code of 1986, as amended (the "Code").
FEDERAL INCOME TAXES
Each Master Portfolio of MIP intends to qualify as a partnership for federal
income tax purposes. Each Master Portfolio therefore believes that it will not
be subject to any federal income tax on its income and net realized capital
gains (if any). However, each investor in a Master Portfolio will be taxed on
its allocable share of the partnership's income and capital gains for purposes
of determining its federal income tax liability. The determination of such
share will be made in accordance with the applicable sections of the Code.
It is intended that each Master Portfolio's assets, income and allocations
will be managed in such a way that a regulated investment company investing in
a Master Portfolio 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 Portfolio.
FUTURES CONTRACTS
The LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030, and LifePath
2040 Master Portfolios may purchase futures contracts to gain exposure to mar-
ket changes, as this may be more efficient or cost effective than actually buy-
ing 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, the LifePath 2000, LifePath 2010,
LifePath 2020, LifePath 2030, and LifePath 2040 Master Portfolios are 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" require-
ments of the exchange. Pursuant to the contract, the Master Portfolios
117
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
agree 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 Portfolios as unrealized
gains or losses. When the contract is closed, the Master Portfolios record a
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. Pursuant to regula-
tions and/or published positions of the Securities and Exchange Commission, the
Master Portfolios are required to segregate cash, U.S. Government obligations
or high quality, liquid debt instruments in connection with futures transac-
tions in an amount generally equal to the entire contract amount. Risks of en-
tering into futures contracts include the possibility that there may be an il-
liquid 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, 1997,
the Master Portfolios had no open futures contracts outstanding.
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell
such securities at a specified price and time ("repurchase agreements") are
treated as collateralized financing transactions and arerecorded at their con-
tracted resale amounts. These repurchase agreements, if any, are detailed in
each Master Portfolio's Portfolio of Investments. The adviser to the Master
Portfolios may pool each Master Portfolio's cash and invest in repurchase
agreements entered into by the other Master Portfolios. Each Master Portfolio's
prospectus requires that the cash investments be fully collateralized based on
values that are marked to market daily. The collateral is generally held by an
agent bank under a tri-party agreement. It is the adviser's responsibility to
value collateral daily and to obtain additional collateral as necessary to
maintain the value at equal to or greater than 102% of market value. The repur-
chase agreements entered into on August 31, 1997 by the Master Portfolios are
collateralized by U.S. Government Securities.
ORGANIZATION EXPENSES
Stephens, the co-administrator, sponsor and placement agent for the Master
Portfolios, has paid all expenses in connection with the Master Portfolios'
organization and initial registration.
118
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
2. AGREEMENTS AND OTHER TRANSACTION WITH AFFILIATES
Pursuant to an Investment Advisory Contract with each Master Portfolio,
Barclays Global Fund Advisors ("BGFA") provides investment guidance and policy
direction in connection with the management of each Master Portfolio's assets.
BGFA is entitled to receive 0.55% of the average daily net assets of the
LifePath Master Portfolios as compensation for its advisory services to such
Master Portfolios. BGFA is an indirect subsidiary of Barclays Bank PLC.
Investors Bank & Trust Company ("IBT") serves as the custodian to each Master
Portfolio. IBT will not be entitled to receive fees for its custodial services
so long as it is entitled to receive a separate fee from BGI for its services
as Sub-Administrator of the Stagecoach Trust Funds.
Certain officers and directors of MIP are also officers of Stephens. As of
August 31, 1997, these officers of Stephens collectively owned less than 1% of
the Master Portfolios' outstanding shares of beneficial interests.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities, for
each Master Portfolio for the six months ended August 31, 1997 are as follows:
<TABLE>
<CAPTION>
LifePath LifePath LifePath LifePath LifePath
Aggregate 2000 2010 2020 2030 2040
Purchases Master Master Master Master Master
and Sales of: Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
U.S. Government
Obligations
- -------------------------------------------------------------------------------
Purchases at cost $15,354,999 $29,887,410 $45,799,474 $13,913,684 $ 11,248,241
Sales proceeds 30,005,371 28,536,873 44,860,655 15,266,855 18,750,766
Other Securities:
- -------------------------------------------------------------------------------
Purchases at cost 1,535,695 5,295,787 17,720,008 17,054,815 75,256,106
Sales proceeds 6,863,822 8,091,021 9,271,168 4,980,483 34,182,894
</TABLE>
119
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
4. PORTFOLIO SECURITIES LOANED
As of August 31, 1997, certain Master Portfolios had loaned securities which
were collateralized by cash, money market mutual funds and repurchase agree-
ments. Each Master Portfolio receives transaction fees for providing services
in connection with the securities lending program. The value of the securities
on loan and the value of the related collateral were as follows:
<TABLE>
<CAPTION>
Securities Collateral
- -------------------------------------------------------
<S> <C> <C>
LifePath 2000 Master Portfolio $21,123,198 $21,577,550
LifePath 2010 Master Portfolio $15,554,980 $15,962,363
LifePath 2020 Master Portfolio $26,100,436 $26,850,117
LifePath 2030 Master Portfolio $13,822,020 $14,313,971
LifePath 2040 Master Portfolio $33,089,158 $34,394,414
</TABLE>
120
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
5. FINANCIAL HIGHLIGHTS
The portfolio turnover rates, excluding short-term securities, for the Master
Portfolios are as follows:
<TABLE>
<CAPTION>
LifePath LifePath LifePath LifePath LifePath
2000 2010 2020 2030 2040
Master Master Master Master Master
Portfolio Turnover Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
For the Six Months Ended
August 31, 1997 (Unaudited) 14% 21% 21% 12% 18%
For the Year Ended February
28, 1997 108% 73% 61% 42% 48%
For the Year Ended February
29, 1996 84% 39% 49% 39% 29%
For the Year Ended February
28, 1995 17% 24% 28% 40% 5%
</TABLE>
The average commission rates paid by the Master Portfolios are as follows:
<TABLE>
<CAPTION>
For the
Six Months Ended For the
August 31, 1997 Year Ended
(Unaudited) February 28, 1997
- ------------------------------------------------------------------
<S> <C> <C>
LifePath 2000 Master Portfolio $0.0300 $0.0401
LifePath 2010 Master Portfolio 0.0323 0.0404
LifePath 2020 Master Portfolio 0.0300 0.0451
LifePath 2030 Master Portfolio 0.0310 0.0364
LifePath 2040 Master Portfolio 0.0307 0.0351
</TABLE>
121
<PAGE>
NOTES
<PAGE>
Barclays Global Fund Advisors ("BGFA") provides investment advisory services
for the Funds. Wells Fargo Bank provides shareholder services and certain other
services for the Funds. The Funds are sponsored and distributed by Stephens
Inc., Member NYSE/SIPC. BGFA is not affiliated with Stephens Inc.
The 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 accompa-
nied or preceded by a current prospectus. For an additional prospectus contain-
ing more complete information, including charges and expenses, call 1-800-776-
0179. Read the prospectus carefully before you invest or send money.
MAC 0101-030
STAGECOACH INSTITUTIONAL FUNDS
c/o Wells Fargo Bank, N.A.
Transfer Agent
525 Market Street
San Francisco, CA 94105
DATED MATERIAL
PLEASE EXPEDITE
LOGO
