<PAGE>
[LOGO OF STAGECOACH FUNDS(R) APPEARS HERE]
STAGECOACH LIFEPATH(R) FUNDS
INSTITUTIONAL CLASS
---------------------------------
SEMI-ANNUAL REPORT
---------------------------------
LIFEPATH OPPORTUNITY(R)
LIFEPATH 2010(R)
LIFEPATH 2020(R)
LIFEPATH 2030(R)
LIFEPATH 2040(R)
AUGUST 31, 1998
ADVISED BY BARCLAYS GLOBAL FUND ADVISORS
SPONSORED AND DISTRIBUTED BY STEPHENS INC.,
MEMBER NYSE/SIPC
NOT FDIC INSURED
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders...................................................... 1
Market Overview............................................................. 3
Investment Adviser Discussion............................................... 7
STAGECOACH TRUST
Statement of Assets and Liabilities......................................... 10
Statement of Operations..................................................... 12
Statements of Changes in Net Assets......................................... 14
Financial Highlights........................................................ 18
Notes to the Financial Statements........................................... 28
MASTER INVESTMENT PORTFOLIO
PORTFOLIOS OF INVESTMENTS
LifePath Master Portfolios.................................................. 36
MASTER INVESTMENT PORTFOLIO
Statement of Assets and Liabilities......................................... 120
Statement of Operations..................................................... 122
Statements of Changes in Net Assets......................................... 124
Notes to the Financial Statements........................................... 128
</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>
SHAREHOLDERS LETTER
To Our Shareholders:
The six month period ending August 31, 1998 continued to demonstrate funda-
mental strengths in both the domestic equity and bond markets, although in-
creased volatility in recent months has raised concerns that certain supports
of the bull market are faltering.
The dramatic rise in equity prices over the past three-and-one-half years
can be attributed largely to strong and stable corporate earnings growth capi-
talized at higher valuations because of the drop in bond yields. Earnings, as
measured by the Standard & Poor's 500 Index, have grown every year since 1991
and are projected to rise this year and next. This consistent earnings pattern
is more highly valued by investors than is a period of faster gains followed
by a sharp decline in earnings. In addition to a steady earnings pattern, the
strong growth rate for earnings as measured by the Standard & Poor's 500 Index
has been 14% over the past five years, as compared with a long-run average of
just over 6%
Key trends for the period currently support the following views:
. Economic growth is expected to resume following a mid-year lull.
. The strong demand for equities and the positive interest rate
environment will continue to support stocks, even though earnings
growth is slowing, and is likely to result in a volatile market near-
term.
. U.S. Bonds remain an attractive investment, as solid U.S. real yields
compare favorably with those of other industrialized countries.
. Reduction in supply should support Treasury prices.
. Lower interest rate levels continue to cushion equity corrections.
As market volatility increases, it is important for investors to remember
their long-term investment goals when making investment decisions. While one
sector may look more appealing than others due to recent performance, it is
essential to understand that past performance is not a predictor of future re-
turns. As market conditions change, you should maintain your long-term invest-
ment strategy if it continues to be appropriate. A hallmark of successful in-
vestors is that they stay focused on their personal financial goals and do not
change investment strategies solely on the basis of short-term market swings.
The Stagecoach LifePath Funds are conceived and managed to be a straight-
forward and cost-effective way to manage your long-term investment goals. We
hope we have been able to fulfil your expectations and that we will continue
to do so in the future. We appreciate your trust and look forward to helping
you manage your investment goals.
<PAGE>
Shareholders should note that the Stagecoach Trust Institutional Class
shares are closed to further subscriptions and do not allow reinvestment of
dividends. The LifePath Funds of MasterWorks Funds Inc., another open-end in-
vestment company, invest in the same underlying Master Portfolios as the
Stagecoach Trust LifePath Funds. Information regarding additional investment
options may be obtained by calling 1-800-643-9691.
Stagecoach Funds October 1998
2
<PAGE>
MARKET OVERVIEW
MARKET OVERVIEW: SIX-MONTH PERIOD ENDING AUGUST 31, 1998
U.S. EQUITY MARKETS
Equity markets around the globe faced strong turbulence during the second
quarter of 1998. The U.S. was no exception and ended the second quarter with
the Dow Jones Industrial Average down 512.61. This came after the year opened
on a bright note with the DJIA cracking the 9000 barrier and reaching a peak on
May 13. The Russell 2000 peaked on April 22 and the S&P 500 hit a new record
high at the end of June.
The drop in stock prices during July and August was directly related to fears
that Asia's deepening recession would negatively affect corporate earnings.
This was reminiscent of the drop in stock prices last fall when the first wave
of the Asian crisis rippled through the world's equity markets. Investors and
analysts were forced to lower their earnings forecasts for the fourth quarter
of last year and the first quarter of 1998. This more recent wave of bad news
from Asia forced downward revisions to second quarter earnings forecasts and
called into question the outlook for earnings during the second half of the
year.
Concerns over Asia's continued economic malaise, along with new concerns
about the viability of the Russian economy, came on top of growing fears of
lackluster earnings from corporate America. Fears of mediocre earnings
performance are based on rising labor costs, lack of stable pricing and the
strong U.S. dollar. A strong U.S. dollar typically lowers sales abroad and
diminishes the value of profits repatriated to the U.S. Another potential
negative factor relates to the political uncertainty created by the Starr
investigation of President Clinton.
One motto for investors over the past three and a half years has been Bigger
is Better, as stocks of larger companies have led a strong market rally while
the stocks of smaller companies have lagged behind. Over the past three and a
half years, the Russell 2000 Index has risen at an annual rate of 18.8% versus
a 29.4% rate for the S&P 500 index. While an 18.8% annual rate of gain is
commendable performance on an absolute basis, it did significantly trail large-
capitalization stocks.
This large relative underperformance continued during the first half of 1998,
despite the view that smaller firms, being more domestically oriented, are
better insulated from foreign economic factors.
3
<PAGE>
U.S. FIXED INCOME MARKETS
The bond market rally, which began in April of 1997, stalled during the first
quarter of 1998, but returned in full force during the second quarter. Yields
on Treasury securities with maturities under two years did not decline much
because of support from the 5.50% federal funds rate. Yields on Treasury
securities between five and thirty years fell to a much greater extent, with
the largest decline occurring on the 30-year Treasury bond. In fact, the yield
on the 30-year Treasury bond fell to its lowest level since the U.S. Treasury
began regular auctions of 30-year bonds.
A number of factors came together to re-ignite the rally in the fixed income
markets during the second quarter:
. The largely self-reinforcing low inflation foundation remained in place,
providing the backdrop against which fixed income yields could fall.
. Continued turmoil in Russia's economic and political systems negatively
impacted most major equity markets.
. In 1998, the Federal budget will record a surplus, estimated to be between
$50 to $80 billion, for the first time in twenty-eight years. The fiscal
conservativeness of the government has reduced the supply of new debt and has,
therefore, put downward pressure on yields.
. The Treasury market benefited from another bout of "flight to quality" from
investors around the globe due to renewed concerns over the Asian crisis.
. The economic weakness in Asia has caused commodity prices to fall, sending
ripples of deflation into economies and financial markets around the world.
. The manufacturing sector is now being impacted by the problems in Asia
which will slow the economy's growth rate during the second half of 1998.
The Federal Reserve has demonstrated a willingness to test the concept of a
"new age" and refrain, at least temporarily, from tightening monetary policy.
The "new age" school believes that there is a more productive, largely
inflation-resistant and less cyclical economy at work today.
Continued weakness in emerging markets around the globe helped drive a strong
flight to quality that helped Treasury bonds throughout the second quarter. As
the yield on the ten-year Treasury note broke
4
<PAGE>
MARKET OVERVIEW
below the 5.0% level, the mortgage-backed market once again was buffeted by
prepayment fears as refinance activity began to heat up. The mortgage-backed
market will continue to be under considerable pressure going forward as long as
fixed income yields remain at historically low levels and consumer confidence
and income levels remain high. The corporate bond market underperformed the
Treasury market for both the quarter and the year to date, as investors
struggled with the combination of a heavy calendar of new issue supply and
concerns that the slowdown in Southeast Asia might cause more of a downturn in
the domestic economy than was originally anticipated.
INTERNATIONAL EQUITY MARKETS
The MSCI EAFE Index (Morgan Stanley Capital International--Europe, Australia,
Far East Index) remained largely unchanged during the second quarter and masked
disparate performance between its European and Pacific components. European
stocks were the best performers around the globe during each of the first two
quarters of the year. The Economic and Monetary Union (EMU), scheduled to
commence on January 1, 1999, has set off a series of positive events.
The strict adherence to certain economic targets required of EMU charter
members has forced several European governments to practice some
uncharacteristic monetary and fiscal discipline. The result has been the best
combination of low inflation, low interest rates, and fiscal responsibility
seen throughout Europe in quite some time. Moreover, the renewed focus of
corporate America on enhancing share value through greater profitability and
productivity has spread to Europe. European companies are aggressively cutting
costs, restructuring and becoming more profitable. The result has been higher
earnings and expansions in price/earnings multiples.
The investment climate in Europe stands in stark contrast to the Pacific Rim,
which is dominated by Japan. Weakening economies, credit shortages and falling
currency values led to a drop of 8.8% (in U.S. dollars) in developed Asian
markets during the second quarter. However, there are slight hints that Japan
may be turning the corner. The U.S. intervened in the currency markets in late
June to support the yen for the first time since 1992. While markets are not
swayed by the notion that currency intervention alone is a fundamental fix,
they take comfort in the assumption that agreements had been worked out between
the leaders of Japan and the other members of the G-7 as a condition of
intervention. Japan has at least two major economic problems. One is a moribund
level of domestic demand that is insufficient to give the domestic economy the
necessary stimulus. The other is a banking system burdened by an estimated
$700-800 billion of
5
<PAGE>
bad loans. These loan problems have effectively shut-off lending to small and
medium-sized companies, a key part of the Japanese economy. Quick action by the
Japanese government in implementing permanent tax cuts and restructuring the
ailing banking system is needed. If this happens, it could be the catalyst that
revives Asian economies. Given the current low valuations, there could be a
significant rally in the Pacific Rim.
The world's emerging markets turned sharply lower during the second quarter
after a modest rebound during the first quarter, which followed a 17.5% drop
during the fourth quarter of 1997. The emerging Asian economies are caught in a
self-perpetuating downward spiral of falling demand, collapsing output, rising
unemployment, and sinking business and consumer confidence. The increasing
financial fragility of companies is causing banks to cut back lending and the
resulting credit crunch is compounding the difficulties.
6
<PAGE>
INVESTMENT ADVISOR DISCUSSION
INVESTMENT ADVISOR DISCUSSION
Average Annual
PERFORMANCE AS OF 8/31/98 Total Return
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Life of Fund
(3/1/94-
Fund One Year 8/31/98)
---- -------- ------------
<S> <C> <C>
LifePath Opportunity 6.69% 7.76%
LifePath 2010 6.64% 11.06%
LifePath 2020 6.12% 13.06%
LifePath 2030 6.06% 14.63%
LifePath 2040 4.30% 15.79%
</TABLE>
Average annual total return for the indicated periods represents the average
annual increase in value of an investment over the indicated periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
Past performance is not predictive of future results. The investment return and
principal value of the shares of the Fund will fluctuate with market conditions
so that the shares of the Fund, when redeemed, may be worth more or less than
their original cost.
The table below shows each Fund's per share net asset value (NAV) as of
February 28, 1998 and August 31, 1998 and the cumulative dividends per share
from Net Investment Income for the indicated period:
<TABLE>
<CAPTION>
Cumulative
Dividends
Per Share From
Net Investment
NAV Per Share NAV Per Share Income
Fund As of 2/28/98 As of 8/31/98 3/1/98-8/31/98
---- ------------- ------------- --------------
<S> <C> <C> <C>
LifePath
Opportunity $10.29 $10.33 $0.000000
LifePath 2010 $11.67 $11.21 $0.165532
LifePath 2020 $13.85 $12.95 $0.146103
LifePath 2030 $16.09 $14.80 $0.126687
LifePath 2040 $16.35 $14.69 $0.076871
</TABLE>
The LifePath Funds employ both strategic and tactical asset allocation
techniques to manage their portfolio investments. Of the Fund's total asset
allocation, 75% is strategic in nature and focuses on the Fund's long-term
investment allocation. The strategic allocation is determined by the tradeoff
between expected returns and risks for each asset class
7
<PAGE>
based on the time horizon of the Fund. As each Fund nears its target date, the
allocation becomes more conservative, shifting to less risky assets such as
shorter-duration fixed income and money market instruments. Short-term
volatility in the markets has only a small effect on a Fund's long-term
strategic allocation. The progression to less risky assets is a continuous
process resulting in only minor monthly changes to the asset allocation. Forty
years from now, the strategic allocation of LifePath 2040 Fund will look very
similar to the current strategic allocation of the LifePath Opportunity Fund.
Tactical allocation techniques are used to make up the remaining 25% of each
Fund's entire investment allocation. This method attempts to take advantage of
shorter-term market conditions by shifting Fund investments into assets that
appear undervalued on a risk-adjusted basis. The Funds use two types of
tactical allocations. The more conservative tactical approach of shifting from
long duration bonds to short duration bonds and cash plays a larger role in the
LifePath Opportunity Fund than in the other Funds. The LifePath 2040 Fund, for
example, makes more use of the second and more aggressive tactical allocation
which shifts assets between stocks, bonds and cash.
The allocations of the Funds at the start of the period were as follows:
<TABLE>
<CAPTION>
U.S. International U.S. Money
Fund Equity Equity Bonds Market
---- ------ ------------- ----- ------
<S> <C> <C> <C> <C>
LifePath Opportunity 14% 7% 71% 8%
LifePath 2010 35% 11% 49% 5%
LifePath 2020 51% 14% 32% 3%
LifePath 2030 62% 17% 19% 2%
LifePath 2040 75% 19% 6% 0
</TABLE>
The LifePath Funds all posted positive returns despite both volatility in the
equity markets during the latter part of the second quarter and a near-second
all-time point decline for the Dow Jones Industrial Average during the same
period.
The U.S. Treasury bond market benefited from a significant move to quality as
Japan's continuing economic malaise threatened to exacerbate the financial
turmoil engulfing many of the countries of Southeast Asia. And while the U.S.
economy finally began to show signs of moderation from the robust growth of the
first quarter, bond investors in the U.S. seemed to focus more on the U.S.
dollar/Yen exchange rate than on domestic economic data.
8
<PAGE>
INVESTMENT ADVISOR DISCUSSION
By the end of the period, the Funds, allocations were as follows:
<TABLE>
<CAPTION>
U.S. International U.S. Money
Fund Equity Equity Bonds Market
---- ------ ------------- ----- ------
<S> <C> <C> <C> <C>
LifePath
Opportunity 15% 5% 52% 28%
LifePath 2010 35% 10% 44% 11%
LifePath 2020 52% 15% 26% 7%
LifePath 2030 62% 19% 15% 4%
LifePath 2040 79% 21% 0% 0%
</TABLE>
The yield curve flattened during the period as three-month T-bill yields rose,
while yields of intermediate- and long-term bonds declined. The intermediate
portion of the yield curve inverted, the two-year bonds, at 5.48%, yielded more
than the 10-year bonds, at 5.45%. All Treasury securities, from T-bills to
those with 10-year maturities now yield less than the federal funds target
rate, which stands at 5.50%. The 30-year T-bond yield declined the most,
falling from 5.80% to 5.63%, the lowest monthly close since the Treasury began
regular auctions of 30-year bonds in 1977.
In general, the dramatic rise in equity prices over the past three-and-one-half
years can be attributed to strong and stable corporate earnings growth,
capitalized at higher valuations because of the drop in bond yields. Earnings,
as measured by the S&P 500, have grown every year since 1991 and are projected
to rise this year and next. This consistent earnings pattern is more highly
valued by investors than is a period of faster gains followed by a sharp
decline in earnings. Hence, the high overall Price to Earnings ratio (P/E) of
the market is similar to a higher P/E on a consistent growth stock as compared
to the P/E of a cyclical firm. In addition to a steady earnings pattern, the
growth rate for S&P 500 stock earnings has been quite high at 14% over the past
five years, as compared with a long-run average of a little over 6%. It would
appear that the strong demand for equities and the positive interest rate
environment will continue in the foreseeable future.
9
<PAGE>
<TABLE>
<CAPTION>
LifePath Funds Statement of Assets and Liabilities (Unaudited) - August 31, 1998
- ------------------------------------------------------------------------------------------------
LifePath LifePath
Opportunity 2010
Fund Fund
- ------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments:
In corresponding Master Portfolio, at market value (Note 1) $61,746,368 $94,915,056
Receivables:
Receivable from WFB (Note 2) 11,588 16,992
Fund shares sold 0 30,144
Total Assets 61,757,956 94,962,192
- ------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------
Payables:
Due to sponsor and distributor 14,381 35,725
Due to WFB 0 0
Due to Trustees 300 360
Capital shares redeemed 500 105,456
Accrued expenses 17,940 14,663
Total Liabilities 33,121 156,204
TOTAL NET ASSETS $61,724,835 $94,805,988
Net assets consist of:
Paid-in capital $55,843,385 $79,649,540
Undistributed net investment income 365,100 431,494
Undistributed net realized gain on investment 3,239,180 4,388,897
Net unrealized appreciation (depreciation) of investments 2,277,170 10,336,057
TOTAL NET ASSETS $61,724,835 $94,805,988
- ------------------------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ------------------------------------------------------------------------------------------------
Net Assets - Class A $61,645,729 $84,005,707
Shares outstanding - Class A 5,782,745 6,644,997
Net asset value and offering price per share - Class A $ 10.66 $ 12.64
Net Assets - Class B $ 65,108 $10,771,603
Shares outstanding - Class B 6,111 854,340
Net asset value and offering price per share - Class B $ 10.65 $ 12.61
Net Assets - Class C 0 0
Shares outstanding - Class C 0 0
Net asset value and offering price per share - Class C 0 0
Net Assets - Institutional class $ 13,998 $ 28,678
Shares outstanding - Institutional class 1,355 2,558
Net asset value and offering price per share - Institutional class $ 10.33 $ 11.21
- ------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (Unaudited) - August 31, 1998 LifePath Funds
- ------------------------------------------------------------------------------------------------------------------
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investments:
In corresponding Master Portfolio, at market value (Note 1) $168,553,917 $134,495,541 $265,924,944
Receivables:
Receivable from WFB (Note 2) 7,576 12,565 0
Fund shares sold 51,446 34,270 344,094
Total Assets 168,612,939 134,542,376 266,269,038
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------------
Payables:
Due to sponsor and distributor 53,605 45,932 84,580
Due to WFB 0 0 41,786
Due to Trustees 372 372 372
Capital shares redeemed 140,281 91,348 324,742
Accrued expenses 20,574 10,407 31,420
Total Liabilities 214,832 148,059 482,900
TOTAL NET ASSETS $168,398,107 $134,394,317 $265,786,138
Net assets consist of:
Paid-in capital $131,220,661 $102,493,038 $215,985,088
Undistributed net investment income 500,403 259,239 75,360
Undistributed net realized gain on investment 9,388,749 6,761,088 12,138,976
Net unrealized appreciation (depreciation) of investments 27,288,294 24,880,952 37,586,714
TOTAL NET ASSETS $168,398,107 $134,394,317 $265,786,138
- ------------------------------------------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ------------------------------------------------------------------------------------------------------------------
Net Assets - Class A $150,508,627 $116,667,327 $223,039,852
Shares outstanding - Class A 10,932,510 7,682,197 14,518,035
Net asset value and offering price per share - Class A $ 13.77 $ 15.19 $ 15.36
Net Assets - Class B $ 17,848,153 $ 17,693,644 $ 42,447,738
Shares outstanding - Class B 1,308,103 1,181,326 2,815,254
Net asset value and offering price per share - Class B $ 13.64 $ 14.98 $ 15.08
Net Assets - Class C 0 0 $ 277,375
Shares outstanding - Class C 0 0 18,392
Net asset value and offering price per share - Class C 0 0 $ 15.08
Net Assets - Institutional class $ 41,327 $ 33,346 $ 21,173
Shares outstanding - Institutional class 3,191 2,254 1,441
Net asset value and offering price per share - Institutional class $ 12.95 $ 14.80 $ 14.70
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
LifePath Funds Statement of Operations (Unaudited) - For the Six Months Ended August 31, 1998
- ---------------------------------------------------------------------------------------------
LifePath LifePath
Opportunity 2010
Fund Fund
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME ALLOCATED FROM
MASTER PORTFOLIO
Dividends $ 143,132 $ 435,010
Interest 1,440,657 1,476,680
Expenses (183,504) (280,114)
Net Investment Income Allocated from
Master Portfolio 1,400,285 1,631,576
EXPENSES (NOTE 2)
Administration fees 31,741 48,391
Shareholder servicing fees 69,411 106,114
Transfer agency fees 34,944 54,330
Distribution Costs-Class A 82,936 115,903
Distribution Costs-Class B 15 34,220
Distribution Costs-Class C 0 0
Compensation of Trustees 300 360
Legal and accounting services 2,250 2,745
Registration costs 2,386 2,790
Miscellaneous 2,715 2,765
Less expenses waived by Advisor (2,895) (6,932)
Total Expenses 223,803 360,686
NET INVESTMENT INCOME 1,176,482 1,270,890
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIO
Net realized gain (loss) on sale of investments 1,717,898 2,591,881
Net change in unrealized appreciation
(depreciation) of investments (2,629,298) (6,531,447)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 265,082 $(2,668,676)
- ---------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations (Unaudited) - For the Six Months Ended August 31, 1998 LifePath Funds
- -----------------------------------------------------------------------------------------------------
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NET INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIO
Dividends $ 1,174,584 $ 1,157,198 $ 2,615,456
Interest 1,694,160 732,248 124,680
Expenses (519,391) (417,219) (843,288)
Net Investment Income Allocated from
Master Portfolio 2,349,353 1,472,227 1,896,848
EXPENSES (NOTE 2)
Administration fees 89,801 72,065 145,760
Shareholder servicing fees 196,553 143,653 319,509
Transfer agency fees 100,630 80,905 163,582
Distribution Costs-Class A 215,883 168,231 330,344
Distribution Costs-Class B 60,412 64,090 159,249
Distribution Costs-Class C 0 0 230
Compensation of Trustees 372 372 372
Legal and accounting services 3,100 3,410 4,030
Registration costs 5,208 4,194 8,804
Miscellaneous 2,789 2,794 2,854
Less expenses waived by Advisor (14,365) (19,736) (23,944)
Total Expenses 660,383 519,978 1,110,790
NET INVESTMENT INCOME 1,688,970 952,249 786,058
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIO
Net realized gain (loss) on sale of investments 5,757,401 4,435,222 7,875,030
Net change in unrealized appreciation
(depreciation) of investments (17,306,056) (16,642,019) (38,484,478)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (9,859,685) $(11,254,548) $(29,823,390)
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
LifePath Funds Statements of Changes in Net Assets
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LifePath Opportunity Fund
-------------------------------------
(Unaudited)
For the For the
Six Months Ended Year Ended
August 31, 1998 February 28, 1998
- ---------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income $ 1,176,482 $ 2,801,621
Net realized gain (loss) on sale of investments 1,717,898 4,301,793
Net change in unrealized appreciation (depreciation) of
investments (2,629,298) 1,145,265
Net increase (decrease) in net assets resulting from operations 265,082 8,248,679
Distributions to shareholders:
From net investment income
Class A (1,196,844) (2,974,734)
Class B 0(1) N/A
Class C 0 N/A
Institutional class 0 0
From net realized gain from sale of investments
Class A 0 (4,075,304)
Class B 0(1) N/A
Class C 0 N/A
Institutional class 0 (862)
Capital shares transactions:
Proceeds from shares sold - Class A 6,339,620 11,675,990
Reinvestment of dividends - Class A 1,157,055 6,867,295
Cost of shares redeemed - Class A (12,829,801) (36,779,860)
Net increase (decrease) in net assets resulting from
capital share transactions - Class A (5,333,126) (18,236,575)
Proceeds from shares sold - Class B 66,550(1) N/A
Reinvestment of dividends - Class B 0(1) N/A
Cost of shares redeemed - Class B 0(1) N/A
Net increase (decrease) in net assets resulting from
capital share transactions - Class B 66,550(1) N/A
Proceeds from shares sold - Class C N/A N/A
Reinvestment of dividends - Class C N/A N/A
Cost of shares redeemed - Class C N/A N/A
Net increase (decrease) in net assets resulting from
capital share transactions - Class C N/A N/A
Proceeds from shares sold - Institutional class 0 0
Reinvestment of dividends - Institutional class 0 862
Cost of shares redeemed - Institutional class 0 0
Net increase (decrease) in net assets resulting from
capital share transactions - Institutional class 0 862
Increase (Decrease) in Net Assets (6,198,338) (17,037,934)
- ---------------------------------------------------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------------------------------------------------
Beginning net assets 67,923,173 84,961,107
Ending net assets $ 61,724,835 $ 67,923,173
- ---------------------------------------------------------------------------------------------------
</TABLE>
(1) This class of shares commenced operations on August 1, 1998.
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets LifePath Funds
- ------------------------------------------------------------------------------------------------------------------------------------
LifePath 2010 Fund LifePath 2020 Fund
- ------------------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited)
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
August 31, 1998 February 28, 1998 August31,1998 February 28, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 1,270,890 $ 2,485,645 $ 1,688,970 $ 3,241,426
Net realized gain (loss) on sale of investments 2,591,881 5,714,054 5,757,401 10,898,128
Net change in unrealized appreciation (depreciation) of
investments (6,531,447) 6,828,482 (17,306,056) 20,358,807
Net increase (decrease) in net assets resulting from operations (2,668,676) 15,028,181 (9,859,685) 34,498,361
Distributions to shareholders:
From net investment income
Class A (1,150,097) (2,575,007) (1,541,256) (3,252,950)
Class B (74,551) (31,698) (90,849) (47,199)
Class C 0 N/A 0 N/A
Institutional class (419) (1,221) (905) (1,772)
From net realized gain from sale of investments
Class A 0 (5,401,825) 0 (10,821,255)
Class B 0 (261,495) 0 (555,904)
Class C 0 N/A 0 N/A
Institutional class 0 (1,957) 0 (5,732)
Capital shares transactions:
Proceeds from shares sold - Class A 7,866,371 15,777,443 11,100,586 28,343,707
Reinvestment of dividends - Class A 1,130,855 7,917,812 1,526,398 13,987,631
Cost of shares redeemed - Class A (11,299,037) (23,646,888) (18,261,959) (41,621,895)
Net increase (decrease) in net assets resulting from
capital share transactions - Class A (2,301,811) 48,367 (5,634,975) 709,443
Proceeds from shares sold - Class B 5,532,574 6,169,331 8,016,875 11,509,114
Reinvestment of dividends - Class B 72,287 288,508 86,218 588,214
Cost of shares redeemed - Class B (540,403) (321,968) (948,139) (509,483)
Net increase (decrease) in net assets resulting from
capital share transactions - Class B 5,064,458 6,135,871 7,154,954 11,587,845
Proceeds from shares sold - Class C N/A N/A N/A N/A
Reinvestment of dividends - Class C N/A N/A N/A N/A
Cost of shares redeemed - Class C N/A N/A N/A N/A
Net increase (decrease) in net assets resulting from
capital share transactions - Class C N/A N/A N/A N/A
Proceeds from shares sold - Institutional class 0 2 0 0
Reinvestment of dividends - Institutional class 419 3,178 905 7,501
Cost of shares redeemed - Institutional class (30) (24,970) (43,073) (90)
Net increase (decrease) in net assets resulting from
capital share transactions - Institutional class 389 (21,790) (42,168) 7,411
Increase (Decrease) in Net Assets (1,130,707) 12,917,426 (10,014,884) 32,118,248
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning net assets 95,936,695 83,019,269 178,412,991 146,294,743
Ending net assets $ 94,805,988 $ 95,936,695 $ 168,398,107 $ 178,412,991
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
LifePath Funds Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------
LifePath 2030 Fund
-----------------------------------
(Unaudited)
For the For the
Six Months Ended Year Ended
August 31, 1998 February 28, 1998
- --------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income $ 952,249 $ 1,721,243
Net realized gain (loss) on sale of investments 4,435,222 6,664,486
Net change in unrealized appreciation (depreciation) of
investments (16,642,019) 20,833,854
Net increase (decrease) in net assets resulting from
operations (11,254,548) 29,219,583
Distributions to shareholders:
From net investment income
Class A (842,224) (1,721,740)
Class B (59,821) (28,281)
Class C 0 N/A
Institutional class (371) (1,108)
From net realized gain from sale of investments
Class A 0 (6,317,229)
Class B 0 (448,302)
Class C 0 N/A
Institutional class 0 (2,388)
Capital shares transactions:
Proceeds from shares sold - Class A 12,653,906 20,334,470
Reinvestment of dividends - Class A 817,989 7,987,742
Cost of shares redeemed - Class A (12,632,620) (23,153,085)
Net increase (decrease) in net assets resulting from
capital share transactions - Class A 839,275 5,169,127
Proceeds from shares sold - Class B 7,638,156 11,536,495
Reinvestment of dividends - Class B 57,830 473,399
Cost of shares redeemed - Class B (620,009) (351,165)
Net increase (decrease) in net assets resulting from
capital share transactions - Class B 7,075,977 11,658,729
Proceeds from shares sold - Class C N/A N/A
Reinvestment of dividends - Class C N/A N/A
Cost of shares redeemed - Class C N/A N/A
Net increase (decrease) in net assets resulting from
capital share transactions - Class C N/A N/A
Proceeds from shares sold - Institutional class 0 0
Reinvestment of dividends - Institutional class 372 3,494
Cost of shares redeemed - Institutional class (11,364) (4,321)
Net increase (decrease) in net assets resulting from
capital share transactions - Institutional class (10,992) (827)
Increase (Decrease) in Net Assets (4,252,704) 37,527,564
NET ASSETS:
Beginning net assets 138,647,021 101,119,457
Ending net assets $ 134,394,317 $ 138,647,021
- --------------------------------------------------------------------------------------------
</TABLE>
/(2)/ This class of shares commenced operations on July 1, 1998. The
accompanying notes are an integral part of these financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets LifePath Funds
- -----------------------------------------------------------------------------------------------
LifePath 2040 Fund
--------------------------------------
(Unaudited)
For the For the
Six Months Ended Year Ended
August 31, 1998 February 28, 1998
- -----------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income $ 786,058 $ 1,791,179
Net realized gain (loss) on sale of investments 7,875,030 20,942,146
Net change in unrealized appreciation (depreciation) of
investments (38,484,478) 39,110,252
Net increase (decrease) in net assets resulting from
operations (29,823,390) 61,843,577
Distributions to shareholders:
From net investment income
Class A (803,246) (1,930,509)
Class B (31,745) (14,585)
Class C 0/(2)/ N/A
Institutional class (112) (263)
From net realized gain from sale of investments
Class A 0 (21,055,603)
Class B 0 (1,893,805)
Class C 0/(2)/ N/A
Institutional class 0 (2,348)
Capital shares transactions:
Proceeds from shares sold - Class A 28,439,729 53,851,530
Reinvestment of dividends - Class A 797,243 22,961,611
Cost of shares redeemed - Class A (29,429,140) (53,765,333)
Net increase (decrease) in net assets resulting from
capital share transactions - Class A (192,168) 23,047,808
Proceeds from shares sold - Class B 20,131,725 28,753,908
Reinvestment of dividends - Class B 36,691 1,908,390
Cost of shares redeemed - Class B (2,830,470) (1,263,288)
Net increase (decrease) in net assets resulting from
capital share transactions - Class B 17,337,946 29,399,010
Proceeds from shares sold - Class C 326,463/(2)/ N/A
Reinvestment of dividends - Class C 0/(2)/ N/A
Cost of shares redeemed - Class C 0/(2)/ N/A
Net increase (decrease) in net assets resulting from
capital share transactions - Class C 326,463/(2)/ 0
Proceeds from shares sold - Institutional class 23 0
Reinvestment of dividends - Institutional class 111 2,609
Cost of shares redeemed - Institutional class (3,560) 0
Net increase (decrease) in net assets resulting from
capital share transactions - Institutional class (3,426) 2,609
Increase (Decrease) in Net Assets (13,189,678) 89,395,891
NET ASSETS:
Beginning net assets 278,975,816 189,579,925
Ending net assets $ 265,786,138 $ 278,975,816
- -----------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
LifePath Funds Financial Highlights
- --------------------------------------------------------------------------------
For a share outstanding throughout each period is as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
For the Six Months Ended
August 31, 1998 (Unaudited)
--------------------------------------------
Class Class Institutional
A B* Class
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period $10.83 $10.91 $10.29
---------- ---------- ----------
Income from investment operations:
Net investment income 0.20 0.01 0.20
Net realized and unrealized gain (loss)
on investments (0.17) (0.27) (0.16)
---------- ---------- ----------
Total from investment operations 0.03 (0.26) 0.04
Less distributions:
Distributions from net investment income (0.20) 0.00 0.00
Distributions from net realized capital gains 0.00 0.00 0.00
---------- ---------- ----------
Total from Distributions (0.20) 0.00 0.00
---------- ---------- ----------
Net Asset Value, end of period $10.66 $10.65 $10.33
========== ========== ==========
Total Return 0.23% (2.38)% 0.39%
Ratios/Supplemental Data:
Net assets, end of period (000) $61,646 $65 $14
Number of shares outstanding,
end of period (000) 5,783 6 1
Ratios to average net assets:/(1)/
Ratio of expenses to average net assets 1.23% 1.80% 0.95%
Ratio of net investment income to
average net assets 3.55% 2.25% 3.78%
- -------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses 1.23% 52.90% 1.34%
Ratio of net investment income to average net
assets prior to waived fees and reimbursed expenses 3.55% (48.85%) 3.39%
- -------------------------------------------------------------------------------------------------------
</TABLE>
*Period from August 1, 1998 (commencement of operations) to August 31, 1998.
(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>
Financial Highlights LifePath Funds
- --------------------------------------------------------------------------------------------------------------------
LifePath Opportunity Fund
- --------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
Feb. 28, 1998 Feb. 28, 1997
--------------------------- ---------------------------
Class Institutional Class Institutional
A Class A Class
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $10.71 $9.79 $10.64 $10.67
---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.43 0.39 0.42 1.29
Net realized and unrealized gain (loss)
on investments 0.81 0.79 0.28 (0.60)
---------- ---------- ---------- ----------
Total from investment operations 1.24 1.18 0.70 0.69
Less distributions:
Distributions from net investment income (0.44) 0.00 (0.42) (1.36)
Distributions from net realized capital gains (0.68) (0.68) (0.21) (0.21)
---------- ---------- ---------- ----------
Total from Distributions (1.12) (0.68) (0.63) (1.57)
---------- ---------- ---------- ----------
Net Asset Value, end of period $10.83 $10.29 $10.71 $9.79
========== ========== ========== ==========
Total Return 11.99% 12.25% 6.74% 7.23%
Ratios/Supplemental Data:
Net assets, end of period (000) $67,909 $14 $84,949 $12
Number of shares outstanding,
end of period (000) 6,272 1 7,934 1
Ratios to average net assets:(1)
Ratio of expenses to average net assets 1.20% 0.95% 1.20% 0.95%
Ratio of net investment income to
average net assets 3.83% 4.06% 3.93% 4.17%
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses N/A N/A N/A N/A
Ratio of net investment income to average net
assets prior to waived fees and reimbursed expenses N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
LifePath Opportunity Fund
- --------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
Feb. 28, 1996 Feb. 28, 1995
--------------------------- ---------------------------
Class Institutional Class Institutional
A Class A Class
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $9.92 $9.94 $10.00 $10.00
---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.40 0.42 0.34 0.35
Net realized and unrealized gain (loss)
on investments 0.86 0.86 (0.14) (0.12)
---------- ---------- ---------- ----------
Total from investment operations 1.26 1.28 0.20 0.23
Less distributions:
Distributions from net investment income (0.41) (0.42) (0.27) (0.28)
Distributions from net realized capital gains (0.13) (0.13) (0.01) (0.01)
---------- ---------- ---------- ----------
Total from Distributions (0.54) (0.55) (0.28) (0.29)
---------- ---------- ---------- ----------
Net Asset Value, end of period $10.64 $10.67 $9.92 $9.94
========== ========== ========== ==========
Total Return 12.98% 13.19% 2.10% 2.38%
Ratios/Supplemental Data:
Net assets, end of period (000) $100,070 $17,262 $54,617 $7,499
Number of shares outstanding,
end of period (000) 9,406 1,618 5,503 754
Ratios to average net assets:(1)
Ratio of expenses to average net assets 1.20% 0.95% 1.20% 0.95%
Ratio of net investment income to
average net assets 4.00% 4.23% 4.62% 4.89%
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses N/A N/A N/A N/A
Ratio of net investment income to average net
assets prior to waived fees and reimbursed expenses N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
LifePath Funds Financial Highlights
- ---------------------------------------------------------------------------------------------------------
For a share outstanding throughout each period is as follows:
- ---------------------------------------------------------------------------------------------------------
For the Six Months Ended
August 31, 1998 (Unaudited)
---------------------------------------------
Class Class Institutional
A B Class
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 13.16 $ 13.10 $ 11.67
---------- ---------- ----------
Income from investment operations:
Net investment income 0.17 0.12 0.16
Net realized and unrealized gain (loss)
on investments (0.52) (0.50) (0.45)
---------- ---------- ----------
Total from investment operations (0.35) (0.38) (0.29)
Less distributions:
Distributions from net investment income (0.17) (0.11) (0.17)
Distributions from net realized capital gains 0.00 0.00 0.00
---------- ---------- ----------
Total from Distributions (0.17) (0.11) (0.17)
---------- ---------- ----------
Net Asset Value, end of period $ 12.64 $ 12.61 $ 11.21
========== ========== ==========
Total Return (2.67%) (2.92%) (2.61%)
Ratios/Supplemental Data:
Net assets, end of period (000) $ 84,006 $ 10,772 $ 29
Number of shares outstanding,
end of period (000) 6,645 854 3
Ratios to average net assets/(1)/
Ratio of expenses to average net assets 1.22% 1.72% 0.95%
Ratio of net investment income to
average net assets 2.55% 2.03% 2.66%
- ---------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses 1.23% 1.74% 0.97%
Ratio of net investment income to average net
assets prior to waived fees and reimbursed expenses 2.54% 2.01% 2.64%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(1)These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights LifePath Funds
- ---------------------------------------------------------------------------------------------------------------------------
LifePath 2010 Fund
- ----------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
Feb. 28, 1998 Feb. 28, 1997
---------------------------------- -------------------------
Class Class Institutional Class Institutional
A B Class A Class
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 12.20 $ 12.02 $ 10.94 $ 11.42 $ 11.47
--------- -------- ---------- --------- ---------
Income from investment operations:
Net investment income 0.36 0.19 0.38 0.34 1.57
Net realized and unrealized gain (loss)
on investments 1.82 1.88 1.59 0.95 (0.36)
--------- -------- ---------- --------- ---------
Total from investment operations 2.18 2.07 1.97 1.29 1.21
Less distributions:
Distributions from net investment income (0.38) (0.15) (0.40) (0.34) (1.57)
Distributions from net realized capital gains (0.84) (0.84) (0.84) (0.17) (0.17)
--------- -------- ---------- --------- ---------
Total from Distributions (1.22) (0.99) (1.24) (0.51) (1.74)
--------- -------- ---------- --------- ---------
Net Asset Value, end of period $ 13.16 $13.10 $ 11.67 $ 12.20 $ 10.94
========= ======== ========== ========= =========
Total Return 18.45% 17.64% 18.75% 11.60% 11.89%
Ratios/Supplemental Data:
Net assets, end of period (000) $89,659 $6,248 $ 29 $82,971 $ 49
Number of shares outstanding,
end of period (000) 6,815 477 3 6,801 4
Ratios to average net assets(1)
Ratio of expenses to average net assets 1.20% 1.70% 0.95% 1.20% 0.95%
Ratio of net investment income to
average net assets 2.85% 2.15% 3.14% 3.16% 3.41%
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses N/A N/A N/A N/A N/A
Ratio of net investment income to average net
assets prior to waived fees and reimbursed expenses N/A N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Financial Highlights LifePath Funds
- ------------------------------------------------------------------------------------------------------------------
LifePath 2010 Fund
- ------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
Feb. 29, 1996 Feb. 28, 1995
------------------------ ------------------------
Class Institutional Class Institutional
A Class A Class
------------------------ ------------------------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 9.99 $ 10.02 $ 10.00 $ 10.00
--------- --------- --------- ---------
Income from investment operations:
Net investment income 0.32 0.34 0.34 0.33
Net realized and unrealized gain (loss)
on investments 1.58 1.60 (0.02) 0.01
--------- --------- --------- ---------
Total from investment operations 1.90 1.94 0.32 0.34
Less distributions:
Distributions from net investment income (0.33) (0.35) (0.28) (0.27)
Distributions from net realized capital gains (0.14) (0.14) (0.05) (0.05)
--------- --------- --------- ---------
Total from Distributions (0.47) (0.49) (0.33) (0.32)
--------- --------- --------- ---------
Net Asset Value, end of period $ 11.42 $ 11.47 $ 9.99 $ 10.02
========= ========= ========= =========
Total Return 19.40% 19.69% 3.31% 3.53%
Ratios/Supplemental Data:
Net assets, end of period (000) $ 67,178 $ 34,458 $ 36,764 $ 13,028
Number of shares outstanding,
end of period (000) 5,883 3,004 3,679 1,300
Ratios to average net assets(1)
Ratio of expenses to average net assets 1.20% 0.95% 1.20% 0.95%
Ratio of net investment income to
average net assets 3.06% 3.27% 4.40% 4.61%
- ------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses N/A N/A N/A N/A
Ratio of net investment income to average net
assets prior to waived fees and reimbursed
expenses N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
<TABLE>
<CAPTION>
LifePath Funds Financial Highlights
- --------------------------------------------------------------------------------------------------------
For a share outstanding throughout each period is as follows:
- --------------------------------------------------------------------------------------------------------
For the Six Months Ended
August 31, 1998 (Unaudited)
---------------------------------------------
Class Class Institutional
A B Class
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 14.70 $ 14.55 $ 13.85
----------- ----------- -----------
Income from investment operations:
Net investment income 0.14 0.09 0.16
Net realized and unrealized gain on investments (0.93) (0.91) (0.91)
----------- ----------- -----------
Total from investment operations (0.79) (0.82) (0.75)
Less distributions:
Distributions from net investment income (0.14) (0.09) (0.15)
Distributions from net realized capital gains (0.00) (0.00) (0.00)
----------- ----------- -----------
Total from Distributions (0.14) (0.09) (0.15)
----------- ----------- -----------
Net Asset Value, end of period $ 13.77 $ 13.64 $ 12.95
=========== =========== ===========
Total Return (5.48)% (5.70)% (5.55)%
Ratios/Supplemental Data:
Net assets, end of period (000) $ 150,509 $ 17,848 $ 41
Number of shares outstanding, end of period (000) 10,933 1,308 3
Ratios to average net assets:/(1)/
Ratio of expenses to average net assets 1.20% 1.72% 0.95%
Ratio of net investment income to average net assets 1.84% 1.31% 1.99%
- --------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses 1.22% 1.75% 1.07%
Ratio of net investment income to average net
assets prior to waived fees and reimbursed expenses 1.82% 1.28% 1.87%
- --------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights LifePath Funds
- ------------------------------------------------------------------------------------------------------------------------------------
LifePath 2020 Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1998 Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
-------------------------- --------------- ------------------ -----------------
Insti- Insti- Insti- Insti-
Class Class tutional Class tutional Class tutional Class tutional
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
-------- ------- ------- -------- ------- -------- ------- ------- -------
Income from investment operations:
Net investment income 0.28 0.14 0.30 0.27 0.96 0.27 0.29 0.28 0.30
Net realized and unrealized gain on investments 2.73 2.74 2.58 1.43 0.72 2.03 2.03 0.12 0.12
-------- ------- ------- -------- ------- -------- ------- ------- -------
Total from investment operations 3.01 2.88 2.88 1.70 1.68 2.30 2.32 0.40 0.42
Less distributions:
Distributions from net investment income (0.29) (0.12) (0.31) (0.28) (0.96) (0.28) (0.30) (0.23) (0.25)
Distributions from net realized capital gains (1.00) (1.00) (1.00) (0.42) (0.42) (0.21) (0.21) 0.00 0.00
-------- ------- ------- -------- ------- -------- ------- ------- -------
Total from Distributions (1.29) (1.12) (1.31) (0.70) (1.38) (0.49) (0.51) (0.23) (0.25)
-------- ------- ------- -------- ------- -------- ------- ------- -------
Net Asset Value, end of period $ 14.70 $ 14.55 $ 13.85 $ 12.98 $ 12.28 $ 11.98 $ 11.98 $ 10.17 $ 10.17
======== ======= ======= ======== ======= ======== ======= ======= =======
Total Return 23.97% 23.05% 24.27% 14.65% 15.14% 22.94% 23.18% 4.12% 4.39%
Ratios/Supplemental Data:
Net assets, end of period (000) $166,198 $12,129 $ 86 $146,226 $ 69 $122,488 $40,570 $66,036 $16,618
Number of shares outstanding, end of period (000) 11,304 884 6 11,264 6 10,224 3,385 6,494 1,634
Ratios to average net assets:(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 2.05% 1.33% 2.30% 2.33% 2.57% 2.45% 2.68% 3.64% 3.88%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses N/A N/A N/A N/A N/A N/A N/A N/A N/A
Ratio of net investment income to average net
assets prior to waived fees and reimbursed
expenses N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
LifePath Funds Financial Highlights
- -------------------------------------------------------------------------------
For a share outstanding throughout each period is as follows:
- --------------------------------------------------------------------------------
For the Six Months Ended
August 31, 1998 (Unaudited)
Class Class Institutional
A B Class
- -------------------------------------------------------------------------------
Net Asset Value, beginning of period $ 16.51 $ 16.28 $ 16.09
-------- -------- --------
Income from investment operations:
Net investment income 0.12 0.06 0.13
Net realized and unrealized gain on
investments (1.33) (1.30) (1.29)
-------- -------- --------
Total from investment operations (1.21) (1.24) (1.16)
Less distributions:
Distributions from net investment income (0.11) (0.06) (0.13)
Distributions from net realized capital
gains (0.00) (0.00) (0.00)
-------- -------- --------
Total from Distributions (0.11) (0.06) (0.13)
-------- -------- --------
Net Asset Value, end of period $ 15.19 $ 14.98 $ 14.80
======== ======== ========
Total Return (7.41)% (7.66)% (7.33)%
Data:
Net assets, end of period (000) $116,667 $ 17,694 $ 33
Number of shares outstanding, end of
period (000) 7,682 1,181 2
Ratios to average net assets:(1)
Ratio of expenses to average net assets 1.21% 1.72% 0.95%
Ratio of net investment income to average
net assets 1.32% 0.80% 1.44%
- -------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses 1.23% 1.75% 1.09%
Ratio of net investment income to average net
assets prior to waived fees and reimbursed
expenses 1.30% 0.77% 1.30%
- -------------------------------------------------------------------------------
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights LifePath Funds
- -----------------------------------------------------------------------------------------------------------------------------------
LifePath 2030 Fund
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1998 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 $13.83 $13.63 $13.70 $12.34 $12.37 $10.17 $10.18 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income 0.23 0.10 0.26 0.22 0.49 0.21 0.23 0.26 0.29
Net realized and unrealized gain
on investments 3.54 3.50 3.37 1.83 1.66 2.45 2.47 0.13 0.14
------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations 3.77 3.60 3.63 2.05 2.15 2.66 2.70 0.39 0.43
Less distributions:
Distributions from net investment
income (0.23) (0.09) (0.38) (0.23) (0.49) (0.22) (0.24) (0.22) (0.25)
Distributions from net realized
capital gains (0.86) (0.86) (0.86) (0.33) (0.33) (0.27) (0.27) 0.00 0.00
------ ------ ------ ------ ------ ------ ------ ------ ------
Total from Distributions (1.09) (0.95) (1.24) (0.56) (0.82) (0.49) (0.51) (0.22) (0.25)
------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, end of period $16.51 $16.28 $16.09 $13.83 $13.70 $12.34 $12.37 $10.17 $10.18
====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return 28.01% 26.93% 27.48% 17.01% 18.13% 26.53% 26.88% 4.03% 4.42%
Ratios/Supplemental Data:
Net assets, end of period (000) $126,131 $12,469 $47 $101,078 $41 $83,012 $25,447 $41,153 $9,682
Number of shares outstanding,
end of period (000) 7,642 766 3 7,307 3 6,728 2,058 4,045 951
Ratios to average net assets:/(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 1.50% 0.76% 1.74% 1.81% 2.06% 1.92% 2.15% 3.35% 3.59%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived fees
and reimbursed expenses N/A N/A N/A N/A N/A N/A N/A N/A N/A
Ratio of net investment income to
average net assets prior to waived
fees and reimbursed expenses N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
LifePath Funds Financial Highlights
- --------------------------------------------------------------------------------
For a share outstanding throughout each period is as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
For the Six Months Ended
August 31, 1998 (Unaudited)
-----------------------------------------------------------
Class Class Class Institutional
A B C* Class
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 17.07 $ 16.76 $ 18.02 $ 16.35
------------ ------------- ------------- -------------
Income from investment operations:
Net investment income 0.05 0.01 (0.01) 0.06
Net realized and unrealized gain on investments (1.70) (1.68) (2.93) (1.63)
------------ ------------- ------------- -------------
Total from investment operations (1.65) (1.67) (2.94) (1.57)
Less distributions:
Distributions from net investment income (0.06) (0.01) (0.00) (0.08)
Distributions from net realized capital gains 0.00 0.00 0.00 0.00
------------ ------------- ------------- -------------
Total from Distributions (0.06) (0.01) (0.00) (0.08)
------------ ------------- ------------- -------------
Net Asset Value, end of period $ 15.36 $ 15.08 $ 15.08 $ 14.70
============ ============= ============= =============
Total Return (9.74)% (9.96)% (16.13)% (9.76)%
Ratios/Supplemental Data:
Net assets, end of period (000) $ 223,040 $ 42,448 $ 277 $ 21
Number of shares outstanding, end of period (000) 14,518 2,815 18 1
Ratios to average net assets:/(1)/
Ratio of expenses to average net assets 1.21% 1.71% 1.75% 0.95%
Ratio of net investment income to average net assets 0.59% 0.06% 0.00% 0.63%
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed expenses 1.22% 1.73% 10.70% 1.21%
Ratio of net investment income to average
net assets prior to waived fees and
reimbursed expenses 0.58% 0.04% (8.95%) 0.37%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights LifePath Funds
- ------------------------------------------------------------------------------------------------------------------------------------
LifePath 2040 Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1998 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
------- ------- -------- -------- ------- -------- ------- ------- ------
Income from investment operations:
Net investment income 0.13 0.03 0.16 0.16 0.63 0.15 0.17 0.18 0.20
Net realized and unrealized gain
on investments 4.17 4.06 4.02 2.35 1.78 2.82 2.84 0.34 0.34
------- ------- -------- -------- ------- -------- ------- ------- ------
Total from investment operations 4.30 4.09 4.18 2.51 2.41 2.97 3.01 0.52 0.54
Less distributions:
Distributions from net
investment income (0.14) (0.03) (0.18) (0.16) (0.64) (0.16) (0.18) (0.15) (0.17)
Distributions from net realized
capital gains (1.59) (1.59) (1.59) (0.69) (0.69) (0.34) (0.34) 0 0
-------- ------- -------- -------- ------- -------- ------- ------- ------
Total from Distributions (1.73) (1.62) (1.77) (0.85) (1.33) (0.50) (0.52) (0.15) (0.17)
-------- ------- -------- -------- ------- -------- ------- ------- ------
Net Asset Value, end of period $ 17.07 $ 16.76 $ 16.35 $ 14.50 $ 13.94 $ 12.84 $ 12.86 $ 10.37 $10.37
======== ======= ======== ======== ======= ======== ======= ======= ======
Total Return 30.66% 29.47% 31.02% 20.17% 19.89% 28.91% 29.32% 5.26% 5.55%
Ratios/Supplemental Data:
Net assets, end of period (000) $248,195 $30,754 $27 $189,560 $20 $142,738 $33,386 $56,737 $9,976
Number of shares outstanding,
end of period (000) 14,537 1,835 2 13,073 1 11,114 2,596 5,472 962
Ratios to average net assets:(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 0.82% 0.08% 1.07% 1.22% 1.47% 1.29% 1.53% 2.35% 2.61%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses N/A N/A N/A N/A N/A N/A N/A N/A N/A
Ratio of net investment income to
average net assets prior to waived
fees and reimbursed expenses N/A N/A N/A N/A N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<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 October 18, 1993. The Trust currently
issues the following separate funds, which commenced operations on March 1,
1994: LifePath Opportunity, formerly known as LifePath 2000, LifePath 2010,
LifePath 2020, LifePath 2030 and LifePath 2040 (each, a "Fund," collectively,
the "Funds"). The following significant accounting policies are consistently
followed by the Trust in the preparation of its financial statements, and such
policies are in conformity with generally accepted accounting principles for
investment companies.
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 revenues and expenses during the reporting period. Ac-
tual results could differ from those estimates.
The LifePath Opportunity, LifePath 2010, LifePath 2020 and LifePath 2030
Funds are authorized to issue three classes of shares: Class A, Class B and an
Institutional Class. LifePath Opportunity Class B shares commenced operations
on August 1, 1998, LifePath 2040 is authorized to issue four classes of shares:
Class A, Class B, Class C and an Institutional Class. LifePath 2040 Class C
shares commenced operations on July 1, 1998. On March 1, 1997, the Retail
Class' name was changed to Class A and all Funds except LifePath Opportunity,
commenced offering Class B shares. Institutional Class shares are no longer of-
fered by the Funds. The four classes of shares differ principally in their re-
spective distribution, shareholder servicing and transfer agency fees. Share-
holders of each class bear certain expenses that pertain to that particular
class. All shareholders bear the common expenses of the Fund and earn income
from the portfolio, pro rata based on the average daily net assets of each
class. Dividends are determined separately for each class based on income and
expenses allocable to each class. Gains are allocated to each class pro rata
based upon net assets of each class on the date of distribution. Neither class
has preferential dividend rights; differ-
28
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
ences in per share dividend rates are generally due to differences in separate
class expenses, including distribution fees and from the weightings of pro rata
income and gain allocations.
INVESTMENT POLICY AND SECURITY VALUATION
Each Fund invests all of its assets in a separate series (each, a "Master
Portfolio") of Master Investment Portfolio ("MIP"). Each Master Portfolio 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 (57.08%,
45.62%, 54.36%, 59.64%, and 67.92%) for the LifePath Opportunity, LifePath
2010, LifePath 2020, LifePath 2030 and LifePath 2040 Funds, respectively, at
August 31, 1998. 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 are generally traded in the over-the-counter market
and are valued at a price deemed best to reflect fair value as quoted by deal-
ers who make markets in those securities or by an independent pricing source.
U.S. Government obligations are valued at the last reported bid price. Debt se-
curities maturing in 60 days or less are valued at amortized cost, which ap-
proximates market value. 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 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
29
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
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.
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 and ex-
cise taxes. Accordingly, no provision for federal taxes was required.
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% for the Institu-
tional Class and 0.14% for Class A, Class B and Class C of each Fund's average
daily net assets.
30
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
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, Class A, Class B and Class C may pay each
Shareholder Servicing Agent a fee of up to 0.25% and the Institutional Class
may pay 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").
Stephens Inc. ("Stephens"), is the Funds' co-administrator and distributor.
The Trust has entered into an agreement with Stephens on behalf of its shares
for distribution services and has adopted a Plan of Distribution pursuant to
Rule 12b-1 under the 1940 Act, whereby Stephens may be compensated for services
rendered and reimbursed for expenses incurred on behalf of the Class A, Class B
and Class C shares. For providing these services, Stephens is entitled to
receive 0.25% of the average daily net assets of Class A shares on an annual
basis and 0.75% of the average daily net assets of Class B and Class C shares
on an annual basis.
Certain officers and directors of the Trust are also officers of Stephens. At
August 31, 1998, these officers of Stephens collectively owned less than 1% of
the Funds' outstanding shares.
Investors Bank & Trust Company ("IBT") serves as the sub-administrator to
each Fund. IBT is entitled to receive a separate fee from WFB for its services
as Sub-Administrator of the Funds.
Prior to August 1, 1998 the Trust had entered into administration services
arrangements with WFB and Stephens, as co-administrators, who had 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 were 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 was an "all-in" or "semi-unified" fee and WFB and
Stephens, in consideration thereof, had agreed to bear all of the Funds'
ordinary operating expenses, excluding, generally, advisory fees and costs
related to
31
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
securities transactions. WFB and Stephens may delegate certain of their
administration duties to sub-administrators.
Effective August 1, 1998 under the new administration services agreement, WFB
and Stephens are entitled to receive for administration services 0.03% and
0.04% (expressed as a percentage of average daily net assets) respectively,
form each Fund.
The chart below shows the class specific expenses allocated to Class A, Class
B, Class C, and the Institutional Class from August 1, 1998 to August 31, 1998.
<TABLE>
<CAPTION>
LifePath Funds class specific expenses
from August 1, 1998 to August 31, 1998
-------------------------------------------
Class Class Class Institutional
A B C Class
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIFEPATH OPPORTUNITY $ 21,994 $ 1,093 $ 0 $ 35
Class specific waiver (1,785) (1,082) 0 (28)
--------- --------- --------- ---------
TOTAL NET EXPENSES 20,209 11 0 7
LIFEPATH 2010 31,006 4,870 0 39
Class specific waiver (6,208) (721) 0 (3)
--------- --------- --------- ---------
TOTAL NET EXPENSES 24,799 4,149 0 36
LIFEPATH 2020 56,828 8,646 0 106
Class specific waiver (11,972) (2,341) 0 (52)
--------- --------- --------- ---------
TOTAL NET EXPENSES 44,856 6,305 0 54
LIFEPATH 2030 45,136 8,344 0 72
Class specific waiver (16,504) (3,199) 0 (33)
--------- --------- --------- ---------
TOTAL NET EXPENSES 28,631 5,145 0 39
LIFEPATH 2040 86,948 18,398 2,899 68
Class specific waiver (16,948) (4,149) (2,813) (34)
--------- --------- --------- ---------
TOTAL NET EXPENSES $ 70,000 $ 14,249 $ 86 $ 34
</TABLE>
32
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
3. CAPITAL SHARE TRANSACTIONS
As of August 31, 1998, 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 Opportunity Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
- ------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 579,085 1,069,311
Shares issued in reinvestments of
dividends--Class A 106,104 642,199
Shares redeemed--Class A (1,173,543) (3,374,501)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A (488,354) (1,662,991)
Shares sold--Class B 6,111 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 6,111 0
Shares sold--Institutional Class 0 0
Shares issued in reinvestments of
dividends--Institutional Class 0 86
Shares redeemed--Institutional Class 0 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS 0 86
</TABLE>
<TABLE>
<CAPTION>
LifePath 2010 Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
- ------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 584,981 1,237,645
Shares issued in reinvestments of
dividends--Class A 83,900 625,584
Shares redeemed--Class A (839,348) (1,849,051)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A (170,467) 14,178
Shares sold--Class B 412,551 479,146
Shares issued in reinvestments of
dividends--Class B 5,367 22,852
Shares redeemed--Class B (40,494) (25,082)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 377,424 476,916
Shares sold--Institutional Class 0 0
Shares issued in reinvestments of
dividends--Institutional Class 35 283
Shares redeemed--Institutional Class (3) (2,200)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS 32 (1,917)
</TABLE>
33
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 Fund
----------------------------------
For the Six,
Months Ended For the
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
- ------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 730,110 2,024,326
Shares issued in reinvestments of
dividends--Class A 99,846 1,004,243
Shares redeemed--Class A (1,201,715) (2,988,127)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A (371,759) 40,442
Shares sold--Class B 531,336 826,855
Shares issued in reinvestments of
dividends--Class B 5,678 42,494
Shares redeemed--Class B (62,571) (35,689)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 474,443 833,660
Shares sold--Institutional Class 0 0
Shares issued in reinvestments of
dividends--
Institutional Class 63 572
Shares redeemed--Institutional Class (3,052) (7)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS (2,989) 565
</TABLE>
<TABLE>
<CAPTION>
LifePath 2030 Fund
----------------------------------
For the Six,
Months Ended For the
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
- ------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 728,882 1,342,637
Shares issued in reinvestments of
dividends--Class A 47,056 518,299
Shares redeemed--Class A (735,420) (1,526,062)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A 40,518 334,874
Shares sold--Class B 448,276 757,631
Shares issued in reinvestments of
dividends--Class B 3,366 30,895
Shares redeemed--Class B (36,405) (22,437)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 415,237 766,089
Shares sold--Institutional Class 0 0
Shares issued in reinvestments of
dividends--
Institutional Class 22 236
Shares redeemed--Institutional Class (697) (297)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS (675) (61)
</TABLE>
34
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2040 Fund
----------------------------------
For the Six
Months Ended For the
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
- ------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 1,583,277 3,374,578
Shares issued in reinvestments of
dividends--Class A 43,899 1,443,325
Shares redeemed--Class A 1,646,393 (3,354,023)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A 19,217 1,463,880
Shares sold--Class B 1,139,403 1,791,429
Shares issued in reinvestments of
dividends--Class B 2,042 122,045
Shares redeemed--Class B (161,148) (78,517)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 980,297 1,834,957
Shares sold--Class C 18,392 0
Shares issued in reinvestments of
dividends--Class C 0 0
Shares redeemed--Class C 0 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS C 18,392 0
Shares sold--Institutional Class 2 0
Shares issued in reinvestments of
dividends--Institutional Class 6 171
Shares redeemed--Institutional Class (202) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS (195) 171
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of August 31, 1998, 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 Portfolio's financial statements.
35
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS
PERCENT OF NET ASSETS 19.16% 43.11%
ADVERTISING
PERCENT OF NET ASSETS 0.02% 0.06%
Omnicom Group 276 $ 13,145 1,340 $ 63,818
Outdoor Systems Inc 450 10,463 1,300 30,225
R.R. Donnelley Corp 36 475 287 3,785
Snyder Communications Inc 100 3,013 400 12,050
Young & Rubicam Inc+ 0 -- 200 6,113
------------ ------------
TOTAL ADVERTISING
- VALUE $ 27,096 $ 115,991
- COST $ 19,471 $ 72,457
AEROSPACE & DEFENSE
PERCENT OF NET ASSETS 0.19% 0.48%
Allied Signal Inc 822 $ 28,205 4,565 $ 156,637
Boeing Co 1,342 41,518 8,117 251,120
Briggs & Stratton Corp 52 1,914 168 6,185
Coltec Industries 200 2,875 700 10,063
Cordant Technologies Inc 232 8,265 500 17,813
GenCorp Inc 0 -- 0 --
General Dynamics Corp 126 5,993 1,004 47,753
Gulfstream Aerospace Corp 200 7,025 600 21,075
Lockheed Martin Corp 260 22,734 1,599 139,813
Newport News Shipbuilding 64 1,504 292 6,862
Northrop Grumman Corp 139 8,809 554 35,110
Primex Technologies Inc 47 1,727 56 2,058
Rockwell International Corp 320 11,600 1,579 57,239
Sequa Corp Class A 110 7,019 0 --
Stewart & Stevenson Services 364 4,755 380 4,964
Sundstrand Corp 326 14,853 760 34,628
Textron Inc 267 16,754 1,269 79,630
United Technologies Corp 306 22,204 1,701 123,429
------------ ------------
TOTAL AEROSPACE & DEFENSE
- VALUE $ 207,754 $ 994,379
- COST $ 231,863 $ 1,073,469
AIRLINES
PERCENT OF NET ASSETS 0.19% 0.38%
Airborne Freight Corp 300 $ 5,850 700 $ 13,650
Airtran Holdings Inc 300 1,275 200 850
AMR Corp 274 14,933 1,492 81,314
British Airways PLC ADR (UK) 560 41,160 2,100 154,350
Comair Holdings Inc 300 7,631 800 20,350
Continental Airlines Class B 200 8,250 700 28,875
Delta Air Lines Inc 141 14,382 564 57,528
</TABLE>
88
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
65.41% 81.85% 99.73%
0.08% 0.10% 0.13%
3,040 $ 144,780 2,620 $ 124,778 6,416 $ 305,562
2,525 58,706 2,325 54,056 5,025 116,831
628 8,284 549 7,235 1,381 18,215
700 21,088 700 21,088 1,400 42,175
500 15,281 400 12,225 900 27,506
------------ ------------ ------------
$ 248,139 $ 219,382 $ 510,289
$ 140,883 $ 150,306 $ 355,936
0.73% 0.92% 1.04%
10,396 $ 356,713 9,537 $ 327,238 18,537 $ 636,051
18,588 575,066 16,957 524,607 32,785 1,014,286
457 16,823 459 16,897 829 30,518
1,300 18,688 1,300 18,688 2,700 38,813
890 31,706 920 32,775 1,900 67,688
485 10,185 0 -- 0 --
2,302 109,489 2,224 105,779 4,092 194,626
1,100 38,638 1,100 38,638 2,300 80,788
3,590 313,901 3,268 285,746 6,397 559,338
615 14,453 465 10,928 846 19,881
1,268 80,360 1,184 75,036 2,173 137,714
107 3,932 85 3,124 126 4,630
3,564 129,195 3,348 121,365 6,551 237,474
137 8,742 102 6,509 0 --
495 6,466 365 4,768 845 11,038
1,490 67,888 1,430 65,154 2,990 136,232
2,986 187,372 2,744 172,186 5,368 336,842
4,057 294,386 3,540 256,871 7,610 552,201
------------ ------------ ------------
$ 2,264,003 $ 2,066,309 $ 4,058,120
$ 2,296,374 $ 2,112,386 $ 4,825,688
0.58% 0.75% 0.86%
1,400 $ 27,300 1,300 $ 25,350 2,800 $ 54,600
400 1,700 200 850 700 2,975
3,384 184,428 3,092 168,514 6,004 327,218
4,725 347,288 4,700 345,450 8,550 628,425
1,500 38,156 1,400 35,613 3,000 76,313
1,300 53,625 1,300 53,625 2,700 111,375
1,343 136,986 1,275 130,050 2,475 252,450
</TABLE>
89
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
FDX Corp+ 232 $ 11,615 1,187 $ 59,424
Japan Air Lines Co ADR
(Japan) 9,808 47,201 38,100 183,356
KLM Royal Dutch Airlines ADR
(Netherlands) 313 9,625 923 28,382
Northwest Airlines Corp
Class A 400 11,125 1,000 27,813
Southwest Airlines Co 519 9,245 2,504 44,594
UAL Corp 300 18,094 900 54,281
USAirways Group Inc+ 133 7,747 663 38,620
------------ ------------
TOTAL AIRLINES
- VALUE $ 208,133 $ 793,387
- COST $ 283,540 $ 1,036,709
APPAREL
PERCENT OF NET ASSETS 0.04% 0.09%
Fruit of the Loom Inc Class
A+ 117 $ 2,625 655 $ 14,697
Hartmarx Corp 81 537 230 1,524
Land's End Inc+ 0 -- 0 --
Liz Claiborne Inc 91 2,594 485 13,823
Nike Inc Class B 383 13,285 2,311 80,163
Nine West Group Inc 200 3,188 300 4,781
OshKosh B'Gosh Class A 26 949 49 1,788
Phillips Van Heusen Corp 0 -- 0 --
Reebok International Ltd+ 97 1,570 429 6,944
Russell Corp 75 2,372 298 9,424
Stride Rite Corp 63 551 375 3,281
VF Corp 130 4,924 1,011 38,292
Warnaco Group Inc Class A 300 8,175 800 21,800
------------ ------------
TOTAL APPAREL
- VALUE $ 40,770 $ 196,517
- COST $ 47,302 $ 234,754
AUTO PARTS & EQUIPMENT
PERCENT OF NET ASSETS 0.10% 0.24%
Bandag Inc 0 $ -- 100 $ 3,013
Bandag Inc Class A 100 2,863 100 2,863
Breed Technologies Inc 0 -- 0 --
Cooper Tire & Rubber Co 125 2,000 649 10,384
Dana Corp 250 9,780 1,352 52,979
Deluxe Corp 174 5,046 649 18,821
Eaton Corp 86 5,036 584 34,201
Genuine Parts Co 259 8,110 1,444 45,215
Goodyear Tire & Rubber Co 247 12,103 1,245 61,005
Illinois Tool Works Inc 359 17,389 1,913 92,661
ITT Industries Inc 236 7,110 981 29,553
Lear Corp 200 8,113 700 28,394
</TABLE>
90
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,658 $ 133,066 2,489 $ 124,606 4,758 $ 238,197
91,675 441,186 87,674 421,931 168,287 809,881
2,058 63,283 1,998 61,439 3,980 122,385
2,000 55,625 1,900 52,844 4,000 111,250
6,201 110,455 5,132 91,414 13,149 234,217
1,600 96,500 1,500 90,469 3,300 199,031
1,693 98,617 1,470 85,628 3,662 213,312
------------ ------------ ------------
$ 1,788,215 $ 1,687,783 $ 3,381,629
$ 2,246,391 $ 2,131,584 $ 4,297,991
0.15% 0.18% 0.20%
1,442 $ 32,355 1,251 $ 28,069 2,293 $ 51,449
389 2,577 354 2,345 618 4,094
547 11,214 0 -- 0 --
1,299 37,022 1,214 34,599 2,128 60,648
5,319 184,503 4,886 169,483 9,502 329,601
300 4,781 400 6,375 1,000 15,938
228 8,322 85 3,103 222 8,103
410 3,869 290 2,737 0 --
1,041 16,851 923 14,941 2,094 33,897
752 23,782 721 22,802 1,106 34,977
893 7,814 707 6,186 1,450 12,688
2,254 85,370 2,131 80,712 3,991 151,159
1,500 40,875 1,400 38,150 3,000 81,750
------------ ------------ ------------
$ 459,335 $ 409,502 $ 784,304
$ 528,070 $ 477,276 $ 1,066,053
0.36% 0.46% 0.53%
200 $ 6,025 100 $ 3,013 300 $ 9,038
200 5,725 200 5,725 400 11,450
0 -- 0 -- 100 731
1,631 26,096 1,328 21,248 2,507 40,112
3,065 120,129 2,804 109,868 5,198 203,694
1,421 41,209 1,377 39,933 2,599 75,371
1,274 74,609 1,294 75,780 2,419 141,663
3,274 102,517 3,148 98,572 5,851 183,209
2,908 142,492 2,687 131,663 5,071 248,479
4,372 211,769 3,804 184,256 10,087 488,589
2,216 66,757 2,044 61,575 3,942 118,753
1,300 52,731 1,200 48,675 2,600 105,462
</TABLE>
91
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Mascotech Inc 0 $ -- 300 $ 5,250
Meritor Automotive Inc 370 6,568 1,030 18,283
Modine Manufacturing Co 309 8,594 250 6,953
Navistar International Corp+ 134 2,814 581 12,201
PACCAR Inc 103 4,223 587 24,067
Strattec Security Corp 10 278 28 777
Superior Industries
International Inc 322 6,702 260 5,411
The Pep Boys--Manny Moe &
Jack 59 867 499 7,329
TRW Inc 131 5,617 960 41,160
------------ ------------
TOTAL AUTO PARTS & EQUIPMENT
- VALUE $ 113,213 $ 500,520
- COST $ 116,188 $ 496,911
AUTOMOBILES
PERCENT OF NET ASSETS 0.68% 1.47%
Chrysler Corp 919 $ 41,010 5,150 $ 229,819
Daimler-Benz
Aktiengesellschaft ADR
(Germany) 4,017 341,444 14,586 1,239,809
Fiat SpA ADR (UK) 3,488 53,192 12,530 191,082
Ford Motor Co 1,681 73,963 9,792 430,847
General Motors Corp Class A 911 52,610 5,427 313,409
Harley-Davidson Inc 736 22,678 2,200 67,787
Hertz Corp. Class A 100 3,775 300 11,325
Honda Motor Co Ltd ADR
(Japan) 533 35,711 2,195 147,065
Nissan Motor Co Ltd ADR
(Japan) 3,635 17,948 11,246 55,527
Toyota Motor Corp ADR
(Japan) 2,178 91,475 8,651 363,341
------------ ------------
TOTAL AUTOMOBILES
- VALUE $ 733,806 $ 3,050,011
- COST $ 609,037 $ 2,549,922
BANK & FINANCE
PERCENT OF NET ASSETS 2.04% 4.85%
Advanta Corp Class B 163 $ 1,671 163 $ 1,671
Ahmanson (H F) & Co 134 7,144 872 46,488
Allied Irish Banks PLC ADR
(Ireland) 1,516 117,489 5,302 410,904
American Express Corp 661 51,558 3,459 269,802
Amsouth Bancorp 600 20,625 1,625 55,859
Associated Banc Corp 250 8,000 925 29,600
Associates First Capital
Corp 466 27,552 2,818 166,614
Astoria Financial Corp 100 3,600 400 14,400
Banc One Corp 922 35,036 5,668 215,399
Banco Bilbao Vizcaya ADR
(Spain) 3,720 46,733 13,008 163,413
Banco Central
Hispanoamericano SA ADR
(Spain) 5,148 47,297 18,117 166,450
Banco Santander SA ADR
(Spain) 1,805 32,272 6,324 113,042
</TABLE>
92
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0 $ -- 400 $ 7,000 800 $ 14,000
1,917 34,027 1,832 32,518 4,310 76,502
465 12,933 335 9,317 500 13,906
1,312 27,552 1,259 26,439 2,384 50,064
1,463 59,983 1,328 54,448 2,518 103,238
72 1,998 49 1,360 0 --
454 9,449 331 6,889 510 10,614
1,272 18,683 1,009 14,820 2,060 30,256
2,260 96,898 2,140 91,753 4,003 171,629
------------ ------------ ------------
$ 1,111,582 $ 1,024,852 $ 2,096,760
$ 1,098,788 $ 989,228 $ 2,212,504
2.24% 2.93% 3.19%
11,930 $ 532,376 10,846 $ 484,003 20,864 $ 931,056
32,403 2,754,254 31,775 2,700,874 58,168 4,944,279
27,870 425,017 27,375 417,469 50,080 763,720
22,367 984,147 20,343 895,091 39,375 1,732,499
12,337 712,462 11,229 648,475 21,815 1,259,815
4,218 129,967 3,988 122,880 8,580 264,371
600 22,650 500 18,875 1,100 41,525
5,287 354,229 5,092 341,164 9,744 652,848
34,144 168,586 32,849 162,192 62,607 309,122
20,571 863,982 19,669 826,097 37,744 1,585,247
------------ ------------ ------------
$ 6,947,670 $ 6,617,120 $ 12,484,482
$ 5,848,392 $ 5,751,869 $ 11,115,185
7.16% 9.05% 10.66%
272 $ 2,788 217 $ 2,224 380 $ 3,895
2,005 106,892 1,884 100,441 3,615 192,725
11,853 918,608 11,741 909,927 21,391 1,657,802
8,002 624,156 7,043 549,354 17,451 1,361,177
3,150 108,281 3,025 103,984 6,425 220,860
1,725 55,200 1,650 52,800 3,500 112,000
6,381 377,277 5,862 346,591 11,318 669,177
700 25,200 600 21,600 1,400 50,400
12,949 492,054 11,748 446,416 22,959 872,442
29,205 366,888 28,749 361,159 52,470 659,154
40,251 369,806 39,576 363,605 72,396 665,138
14,280 255,255 13,974 249,785 25,296 452,166
</TABLE>
93
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO 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 988 $ 23,897 6,004 $ 145,222
BankAmerica Corp 971 62,205 5,513 353,176
BankBoston Corp 412 14,703 2,404 85,793
Bankers Trust Corp 94 6,985 769 57,146
BB&T Corp 400 11,275 2,254 63,535
Bear Stearns Co Inc 200 7,388 955 35,275
Campstead Mortgage Corp 0 -- 400 1,200
Capital One Financial Corp 0 -- 100 8,750
CCB Financial Corp 100 9,506 200 19,013
Centura Banks Inc 100 5,625 400 22,500
Charter One Financial Inc 702 16,146 1,802 41,446
Chase Manhattan 1,258 66,673 6,368 337,504
Citicorp 597 64,550 3,616 390,979
City National Corp 200 5,575 600 16,725
Comdisco Inc 648 8,060 1,634 20,323
Comerica Inc 214 11,182 1,232 64,372
Commerce Bancshares Inc 235 9,400 835 33,400
Compass Bancshares Inc 400 13,200 1,000 33,000
ContiFinancial Corp 0 -- 100 1,263
Countrywide Credit
Industries Inc 104 3,894 845 31,635
Credit Acceptance Corp 200 1,275 200 1,275
Crescent Operating Inc 0 -- 80 645
Crescent Real Estate Co 500 11,500 1,600 36,800
Crestar Financial Corp 604 30,502 1,640 82,820
Dime Bancorp Inc 500 9,500 1,700 32,300
Donaldson Lufkin & Jenrette
In 100 3,500 400 14,000
Duke Realty Investments 400 8,300 1,100 22,825
Edwards A G & Sons Inc 382 10,362 1,230 33,364
Equifax Inc 216 7,695 1,165 41,503
Federal Home Loan Mortgage
Corp 993 39,224 5,034 198,843
Federal National Mortgage
Assoc 1,361 77,321 8,334 473,474
Fifth Third Bancorp 409 21,754 1,923 102,280
Finova Group Inc 300 13,388 800 35,700
First American Corp 600 21,525 1,568 56,252
First Chicago NBD Corp 347 21,991 2,346 148,678
First Hawaiian Inc 200 5,875 300 8,813
First Security Corp 841 13,036 2,655 41,153
First Tennessee National
Corp 616 14,669 1,980 47,149
First Union Corp 1,341 65,038 7,793 377,961
First Virginia Banks Inc 338 14,534 770 33,110
Firstar Corp 600 23,250 1,800 69,750
Firstmerit Corp 300 6,638 1,000 22,125
Firstplus Financial Group 200 4,550 400 9,100
Fleet Financial Group Inc 366 23,996 2,271 148,892
</TABLE>
94
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
13,890 $ 335,964 12,646 $ 305,875 24,736 $ 598,302
12,534 802,959 11,461 734,220 22,164 1,419,880
5,388 192,284 5,018 179,080 9,554 340,958
1,799 133,688 1,627 120,906 3,175 235,942
5,204 146,688 4,662 131,410 9,324 262,820
2,109 77,901 1,969 72,730 3,683 136,041
800 2,400 700 2,100 1,500 4,500
100 8,750 100 8,750 300 26,250
400 38,025 400 38,025 900 85,556
700 39,375 700 39,375 1,400 78,750
3,504 80,592 3,242 74,566 7,076 162,748
14,830 785,990 13,090 693,770 32,272 1,710,415
8,330 900,681 7,550 816,343 14,667 1,585,868
1,100 30,663 1,000 27,875 2,100 58,538
3,122 38,830 3,008 37,412 6,526 81,167
2,917 152,413 2,630 137,418 5,169 270,080
1,663 66,520 1,524 60,960 3,326 133,040
1,850 61,050 1,750 57,750 3,850 127,050
200 2,525 200 2,525 300 3,788
2,007 75,137 1,876 70,233 3,464 129,683
0 -- 200 1,275 500 3,188
0 -- 0 -- 200 1,613
3,000 69,000 2,900 66,700 6,200 142,600
3,070 155,035 2,930 147,965 6,270 316,635
3,300 62,700 3,100 58,900 6,700 127,300
700 24,500 700 24,500 1,400 49,000
2,100 43,575 2,000 41,500 4,200 87,150
2,425 65,778 2,265 61,438 4,837 131,204
2,594 92,411 2,381 84,823 5,971 212,717
11,847 467,957 10,428 411,906 22,816 901,232
19,126 1,086,595 17,193 976,776 33,621 1,910,092
4,317 229,611 3,769 200,464 9,265 492,782
1,500 66,938 1,400 62,475 3,100 138,338
3,019 108,307 2,919 104,719 6,155 220,811
5,244 332,339 4,853 307,559 9,277 587,930
600 17,625 500 14,688 1,300 38,188
4,992 77,380 4,729 73,300 10,088 156,360
3,740 89,059 3,500 83,344 7,460 177,641
17,858 866,113 16,323 791,663 31,422 1,523,966
1,486 63,898 1,441 61,963 3,017 129,731
3,500 135,625 3,300 127,875 7,100 275,125
1,900 42,038 1,800 39,825 3,800 84,075
800 18,200 800 18,200 1,700 38,675
5,278 346,039 4,755 311,750 8,944 586,391
</TABLE>
95
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Franklin Resources Inc 388 $ 12,513 1,600 $ 51,600
GATX Corp 246 8,118 740 24,420
Golden State Bancorp 200 3,175 600 9,525
Golden West Financial 64 4,872 500 38,063
Greenpoint Financial Corp 400 10,075 1,300 32,744
GTECH Holdings Corp 100 2,625 500 13,125
Hibernia Corp Class A 800 10,800 2,200 29,700
Highwood Properties Inc 300 7,631 900 22,894
Household International Inc 569 21,017 3,966 146,494
Huntington Bancshares Inc 279 6,347 1,689 38,425
INMC Mortgage Holdings Inc
REIT 300 5,888 900 17,663
John Nuveen & Co Inc Class A 0 -- 100 3,413
Keycorp 664 16,932 3,588 91,494
Keystone Financial Inc 300 8,363 700 19,513
Legg Mason Inc 100 4,750 300 14,250
Lehman Brothers Holdings 200 7,875 1,000 39,375
Long Island Bancorp Inc 100 3,750 400 15,000
M & T Bank Corp 0 -- 100 41,000
MBNA Corp 644 15,134 3,840 90,240
Medaphis Corp 800 3,250 900 3,656
Mellon Bank Corp 337 17,524 2,073 107,796
Mercantile Bancorp 154 6,766 1,205 52,945
Mercantile Bankshares 454 12,712 1,035 28,980
Merrill Lynch & Co Inc 430 28,380 2,774 183,084
MGIC Investment Corp 105 4,358 884 36,686
Morgan (J P) & Co Inc 246 22,878 1,484 138,012
Morgan Stanley Dean Witter 784 45,521 4,816 279,629
National Australia Bank Ltd
ADR (Australia) 1,013 61,603 3,531 214,729
National City Corp 436 25,615 2,496 146,640
National Commerce Bancorp 400 6,700 1,200 20,100
NationsBank Corp 1,262 71,933 7,697 438,728
Northern Trust Corp 134 7,471 920 51,290
Northfork Bancorp 700 13,300 2,000 38,000
Norwest Corp 1,047 31,148 6,118 182,011
Oakwood Homes Corp 200 2,850 600 8,550
Ocwen Financial Corp 0 -- 300 4,575
Old Kent Financial Corp 522 16,835 1,485 47,891
Old National Bancorp 345 16,840 231 11,276
Pacific Century Financial
Corp 748 11,033 2,920 43,070
Paine Webber Group Inc 500 17,375 1,500 52,125
Peoples Bank Bridgeport 100 2,050 400 8,400
PNC Bank Corp 419 18,017 2,425 104,275
Price (T Rowe) & Associates 400 12,175 1,400 42,613
</TABLE>
96
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,188 $ 102,813 2,939 $ 94,783 6,395 $ 206,239
1,304 43,032 1,234 40,722 2,720 89,760
1,200 19,050 1,200 19,050 2,500 39,688
1,002 76,277 997 75,897 1,901 144,714
2,400 60,450 2,300 57,931 5,000 125,938
900 23,625 900 23,625 1,900 49,875
4,200 56,700 4,000 54,000 8,600 116,100
1,600 40,700 1,300 33,069 2,900 73,769
9,033 333,656 8,207 303,146 15,956 589,375
3,888 88,452 3,710 84,403 6,868 156,247
1,700 33,363 1,600 31,400 3,400 66,725
0 -- 0 -- 0 --
8,074 205,887 7,412 189,006 14,474 369,087
1,400 39,025 1,300 36,238 2,800 78,050
700 33,250 600 28,500 1,300 61,750
2,200 86,625 1,800 70,875 3,300 129,937
700 26,250 600 22,500 1,400 52,500
100 41,000 100 41,000 300 123,000
8,745 205,508 7,858 184,663 20,291 476,838
1,100 4,469 1,200 4,875 2,000 8,125
4,756 247,312 4,432 230,464 8,361 434,772
2,803 123,157 2,196 96,487 4,910 215,733
1,919 53,732 1,862 52,136 3,920 109,760
6,338 418,308 5,794 382,404 10,912 720,192
2,091 86,777 1,813 75,240 3,694 153,301
3,272 304,296 3,030 281,790 5,797 539,121
11,091 643,971 9,628 559,026 19,652 1,141,044
7,822 475,675 7,674 466,675 14,048 854,294
5,749 337,754 5,006 294,103 12,449 731,379
2,300 38,525 2,200 36,850 4,800 80,400
17,648 1,005,935 16,066 915,761 30,902 1,761,413
2,056 114,622 1,876 104,587 3,730 207,948
3,700 70,300 3,500 66,500 7,550 143,450
13,885 413,079 12,708 378,063 24,786 737,384
1,200 17,100 1,200 17,100 2,500 35,625
500 7,625 400 6,100 1,100 16,775
2,808 90,558 2,680 86,430 5,616 181,116
463 22,600 347 16,938 810 39,538
5,514 81,332 4,954 73,072 4,470 65,932
2,950 102,513 2,800 97,300 5,950 206,763
700 14,700 700 14,700 1,400 29,400
5,522 237,446 5,091 218,913 9,970 428,710
2,600 79,138 2,500 76,094 5,400 164,363
</TABLE>
97
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Provident Financial Group 100 $ 3,763 300 $ 11,475
Regions Financial Corp 940 32,548 2,527 87,497
Republic New York Corp 104 4,290 882 36,383
Ryder System Inc 139 3,275 587 13,831
Sabre Group Holding Inc 0 -- 200 6,400
Schwab (Charles) Corp 278 8,305 2,047 61,154
SLM Holding Corp 250 8,969 1,300 46,638
Sovereign Bancorp Inc 600 7,313 1,900 23,156
Spieker Properties Inc 300 10,669 800 28,450
Star Banc Corp 500 27,438 1,400 76,825
State Street Boston Corp 245 12,755 1,267 65,963
Summit Bancorp 204 6,962 1,455 49,652
SunTrust Banks Inc 239 13,384 1,672 93,632
Synovus Financial Corp 337 6,129 2,115 38,467
TCF Financial Corp 400 8,825 1,400 30,888
The Fund American Companies 0 -- 0 --
Trustmark Corp 300 5,213 1,000 17,375
U.S. Bancorp 1,041 35,524 5,518 188,302
Union Planters Corp 693 27,893 1,887 75,952
UnionBanCal Corp 100 7,488 200 14,975
United Asset Management Corp 500 10,875 1,000 21,750
Valley National Bancorp 300 8,175 800 21,800
Wachovia Corp 312 22,874 1,644 120,526
Washington Federal Inc 312 7,059 753 17,037
Washington Mutual Inc 510 16,320 3,133 100,256
Wells Fargo & Co 156 43,973 674 189,984
Wesco Financial Corp 0 -- 0 --
Westamerica Bancorp 200 4,800 600 14,550
Westpac Banking Corp ADR
(Australia) 1,496 38,990 5,158 134,430
Wilmington Trust Corp 192 8,976 510 23,843
Zions Bancorp 400 15,350 1,000 38,375
------------ ------------
TOTAL BANK & FINANCE
- VALUE $ 2,202,998 $ 10,088,276
- COST $ 1,913,720 $ 8,032,951
BASIC INDUSTRIES
PERCENT OF NET ASSETS 0.26% 0.58%
ASARCO Inc 25 $ 398 302 $ 4,813
Avery-Dennison Corp 100 5,369 866 46,493
Baker Hughes Inc 590 10,764 3,706 67,625
Bemis Co 42 1,507 448 16,072
Boise Cascade Corp 69 1,686 403 9,848
Boise Cascade Office
Products 0 -- 100 1,369
Bowater Inc 195 7,373 810 30,628
</TABLE>
98
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
500 $ 19,125 500 $ 19,125 1,100 $ 42,075
4,931 170,719 4,991 172,796 10,588 366,609
1,980 81,675 1,904 78,540 3,598 148,418
1,367 32,210 1,303 30,702 2,460 57,964
400 12,800 300 9,600 500 16,000
4,757 142,115 4,045 120,844 10,709 319,931
3,050 109,419 2,700 96,863 7,400 265,475
3,700 45,094 3,200 39,000 6,800 82,875
1,500 53,344 1,400 49,788 3,000 106,688
2,600 142,675 2,500 137,188 5,400 296,325
2,832 147,441 2,415 125,731 6,526 339,760
3,257 111,145 3,071 104,798 5,817 198,505
3,854 215,824 3,576 200,256 6,943 388,808
4,636 84,317 4,222 76,788 10,618 193,115
2,600 57,363 2,500 55,156 5,300 116,931
0 -- 0 -- 100 12,800
1,800 31,275 1,700 29,538 3,700 64,288
12,879 439,496 11,365 387,831 28,073 957,991
3,478 139,990 3,281 132,067 7,052 283,843
300 22,463 300 22,463 600 44,925
1,800 39,150 1,700 36,975 3,700 80,475
1,500 40,875 1,400 38,150 3,000 81,750
3,795 278,221 3,438 252,048 6,728 493,246
1,528 34,571 1,395 31,562 3,037 68,712
7,122 227,904 6,217 198,944 12,604 403,328
1,575 443,953 1,424 401,390 2,773 781,639
0 -- 0 -- 100 28,475
1,200 29,100 1,100 26,675 2,300 55,775
11,559 301,256 11,324 295,132 20,465 533,369
949 44,366 904 42,262 1,875 87,656
1,900 72,913 1,800 69,075 3,900 149,663
------------ ------------ ------------
$ 22,212,949 $ 20,416,520 $ 41,724,600
$ 16,885,514 $ 15,764,261 $ 37,412,831
0.88% 1.07% 1.29%
875 $ 13,945 621 $ 9,897 1,370 $ 21,834
1,922 103,187 1,659 89,068 4,073 218,669
8,439 154,004 5,432 99,128 10,401 189,820
975 34,978 892 32,001 1,634 58,620
1,147 28,030 996 24,340 1,823 44,550
800 10,950 200 2,738 400 5,475
1,452 54,904 1,107 41,858 2,275 86,023
</TABLE>
99
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Broken Hill Propriety Co Ltd
ADR (Australia) 590 $ 8,113 2,278 $ 31,323
Champion International Corp 142 4,686 801 26,433
Chesapeake Corp 256 8,384 200 6,550
Consolidated Papers Inc 172 4,311 760 19,048
Crown Vantage Inc 21 79 48 180
Cyprus Amax Minerals 140 1,286 800 7,350
Deltic Timber Corp 140 3,168 165 3,733
Dover Corp 310 8,448 1,748 47,633
Fort James Corp 276 8,039 1,746 50,852
Georgia-Pacific Corp 137 5,874 693 29,712
Glatfelter (P H) Co 486 5,650 280 3,255
Harnischfeger Industries Inc 110 1,767 405 6,505
Homestake Mining Co 222 1,970 1,787 15,860
Ikon Office Solutions Inc 194 1,079 1,028 5,718
Inco Ltd 236 1,977 1,269 10,628
Longview Fibre Co 554 5,402 540 5,265
Louisiana-Pacific Corp 123 2,322 942 17,780
LTB Corp 900 4,894 1,400 7,613
Mark IV Industries Inc 247 3,504 532 7,548
Mead Corp 112 3,066 875 23,953
Minnesota Mining &
Manufacturing Co 585 40,073 3,065 209,952
Mitsubishi Corp ADR (Japan) 3,294 35,602 17,925 193,735
NACCO Industries Inc Class A 18 1,715 48 4,572
Newmont Gold Co 100 1,488 100 1,488
Newmont Mining Corp 164 2,245 1,236 16,918
Potlatch Corp 102 3,353 245 8,054
Rayonier Inc 156 6,084 450 17,550
Sealed Air Corp+ 222 7,992 740 26,640
Smith International Inc 214 3,772 700 12,338
St Joe Paper Corp 300 6,019 400 8,025
Stone Container Corp+ 87 908 850 8,872
U.S. Industries Inc 327 4,537 1,330 18,454
Union Camp Corp 75 2,780 544 20,162
Unisource Worldwide Inc 94 623 665 4,406
Varco International Inc 584 4,161 400 2,850
Varian Associates Inc 177 6,029 490 16,691
Watts Industries Inc Class A 308 5,140 0 --
Wausau-Mosinee Paper Corp 392 4,998 316 4,029
Westvaco Corp 206 4,326 832 17,472
Weyerhauser Co 269 10,104 1,619 60,814
</TABLE>
100
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
5,041 $ 69,314 5,193 $ 71,404 9,571 $ 131,601
1,832 60,456 1,643 54,219 3,114 102,762
361 11,823 266 8,712 650 21,288
1,540 38,596 1,380 34,586 3,040 76,190
104 390 81 304 132 495
1,856 17,052 1,645 15,113 3,034 27,875
307 6,946 199 4,502 334 7,557
4,052 110,417 3,418 93,141 8,794 239,636
3,964 115,452 3,319 96,666 6,863 199,885
1,689 72,416 1,636 70,144 2,997 128,496
769 8,940 489 5,685 770 8,951
998 16,030 854 13,717 1,480 23,773
4,161 36,929 3,596 31,914 6,826 60,581
2,671 14,857 2,325 12,933 4,316 24,008
3,005 25,167 2,850 23,869 5,233 43,826
890 8,677 575 5,606 1,330 12,968
2,021 38,146 1,874 35,372 3,516 66,365
2,800 15,225 2,700 14,681 5,900 32,081
1,070 15,181 862 12,230 2,175 30,858
1,911 52,314 1,840 50,370 3,312 90,666
7,072 484,432 6,229 426,687 15,246 1,044,351
42,788 462,457 40,900 442,051 78,390 847,247
152 14,478 149 14,192 269 25,622
300 4,463 200 2,975 300 4,463
2,805 38,393 2,693 36,860 4,961 67,904
540 17,753 532 17,490 865 28,437
862 33,618 826 32,214 1,619 63,141
1,622 58,392 1,339 48,204 4,853 174,708
1,297 22,860 1,227 21,626 2,600 45,825
800 16,050 600 12,038 1,600 32,100
2,014 21,021 1,679 17,525 3,154 32,920
2,583 35,839 2,528 35,076 5,337 74,051
1,274 47,218 1,251 46,365 2,201 81,575
1,174 7,778 1,092 7,235 2,674 17,715
1,048 7,467 748 5,330 1,900 13,538
835 28,442 790 26,909 1,765 60,120
464 7,743 334 5,574 0 --
572 7,293 407 5,189 371 4,730
1,803 37,863 1,807 37,947 3,274 68,754
3,699 138,944 3,441 129,253 6,592 247,612
</TABLE>
101
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Whitman Corp 564 $ 8,742 1,477 $ 22,893
Willamette Industries Inc 219 5,393 920 22,655
------------ ------------
TOTAL BASIC INDUSTRIES
- VALUE $ 277,200 $ 1,202,357
- COST $ 376,222 $ 1,639,349
BEVERAGES
PERCENT OF NET ASSETS 0.72% 1.60%
Anheuser-Busch Inc 752 $ 34,686 3,700 $ 170,663
Cadbury Schweppes PLC ADR
(UK) 1,257 69,920 4,362 242,636
Coca-Cola Co 3,537 230,346 18,399 1,198,234
Coca-Cola Enterprises Co 1,036 24,605 3,130 74,338
Coors (Adolph) Co Class B 69 2,846 243 10,024
Diageo PLC ADR (UK) 3,357 126,936 11,995 453,560
Hanson PLC ADR (UK) 2,129 52,427 7,456 183,604
Kirin Brewery Co ADR (Japan) 1,597 133,947 6,002 503,417
Louis Vuitton Moet Hennessey
ADR (France) 837 26,679 3,021 96,294
Pepsico Inc 2,162 59,860 11,152 308,771
Seagrams Co Ltd 444 13,709 2,775 85,678
------------ ------------
TOTAL BEVERAGES
- VALUE $ 775,961 $ 3,327,219
- COST $ 718,489 $ 2,920,745
BIOTECHNOLOGY
PERCENT OF NET ASSETS 0.04% 0.05%
Agouron Pharmaceuticals Inc 0 $ -- 300 $ 5,775
Beckman Coulter Inc 94 5,205 450 24,919
Biogen Inc 418 19,333 960 44,400
Chiron Corp 496 7,130 1,192 17,135
Genzyme Corp--General
Division+ 326 8,802 420 11,340
Genzyme Corp--Tissue Repair 44 127 12 35
Quest Diagnostics Inc 46 765 240 3,990
------------ ------------
TOTAL BIOTECHNOLOGY
- VALUE $ 41,362 $ 107,594
- COST $ 32,356 $ 108,982
BROADCASTING
PERCENT OF NET ASSETS 0.19% 0.43%
British Sky Broadcasting ADR
(UK) 617 $ 28,883 2,285 $ 106,967
Chancellor Media Corp Class
A 600 21,413 1,700 60,669
Clear Channel Communications
Inc 408 18,360 1,984 89,280
Hearst-Argyle Television 200 6,400 700 23,056
Heftel Broadcasting Corp 100 2,988 300 9,075
Jacor Communications Inc+ 0 -- 100 5,900
</TABLE>
102
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,851 $ 44,190 2,694 $ 41,757 5,765 $ 89,358
2,062 50,777 1,958 48,216 3,576 88,059
------------ ------------ ------------
$ 2,721,797 $ 2,414,911 $ 5,067,083
$ 3,688,318 $ 3,305,749 $ 7,139,125
2.47% 3.14% 3.91%
8,438 $ 389,203 7,466 $ 344,369 18,312 $ 844,641
9,781 544,068 9,627 535,502 17,462 971,324
42,957 2,797,574 37,807 2,462,180 93,360 6,080,069
5,964 141,645 5,644 134,045 12,065 286,544
738 30,443 656 27,060 1,159 47,809
26,742 1,011,181 26,282 993,787 48,024 1,815,906
16,587 408,455 16,287 401,064 29,795 733,702
14,486 1,215,012 13,780 1,155,797 26,502 2,222,854
6,822 217,451 6,683 213,021 12,213 389,289
25,949 718,463 22,765 630,306 56,369 1,560,716
6,386 197,168 5,840 180,310 11,229 346,695
------------ ------------ ------------
$ 7,670,663 $ 7,077,441 $ 15,299,549
$ 6,697,221 $ 6,255,824 $ 14,045,697
0.06% 0.09% 0.10%
500 $ 9,625 500 $ 9,625 1,100 $ 21,175
850 47,069 805 44,577 1,580 87,493
1,782 82,418 1,722 79,643 3,690 170,663
2,324 33,408 2,200 31,625 4,652 66,873
734 19,818 744 20,088 1,500 40,500
71 204 52 150 54 155
515 8,562 389 6,467 825 13,716
------------ ------------ ------------
$ 201,104 $ 192,175 $ 400,575
$ 203,545 $ 179,527 $ 404,634
0.64% 0.81% 0.95%
5,117 $ 239,540 5,040 $ 235,935 9,202 $ 430,769
3,200 114,200 3,000 107,063 6,500 231,969
4,596 206,820 4,138 186,210 8,098 364,410
1,300 42,819 1,300 42,819 2,700 88,931
700 21,175 600 18,150 1,300 39,325
300 17,700 200 11,800 600 35,400
</TABLE>
103
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Kingworld Productions 104 $ 2,184 580 $ 12,180
MediaOne Group Inc+ 820 33,620 4,940 202,540
TCA Cable TV Inc 532 12,236 0 --
TCI Satellite Entertainment
Class A 107 428 543 2,172
Tele-Communications Inc
Class A+ 776 25,608 3,851 127,083
Tele-Communications
International Inc Class A 300 6,225 300 6,225
Tribune Co 141 9,086 967 62,311
Univision Communications Inc 0 -- 300 7,988
USA Networks Inc 522 10,244 1,428 28,025
Viacom Inc Class B+ 487 24,167 2,910 144,409
------------ ------------
TOTAL BROADCASTING
- VALUE $ 201,842 $ 887,880
- COST $ 149,852 $ 654,151
BUILDING MATERIALS &
SERVICES
PERCENT OF NET ASSETS 0.15% 0.28%
AMBAC Inc 300 $ 14,156 900 $ 42,469
American Standard Co Inc 200 7,825 700 27,388
Cooper Industries Inc 133 5,661 984 41,882
Corning Inc 320 7,880 1,743 42,921
Cytec Industries Inc 100 2,288 500 11,438
Dal Tile International Inc 0 -- 0 --
Danaher Corp 400 14,500 1,160 42,050
Diebold Inc 366 8,006 1,035 22,641
Fastenal Co 100 2,919 400 11,675
Georgia-Pacific (Timber
Group) 437 8,795 1,293 26,022
Kennametal Inc 300 7,781 300 7,781
Lafarge Corp 300 8,569 400 11,425
Lawson Products Inc 0 -- 0 --
Martin Marietta Inc 0 -- 100 4,263
Owens Corning Fiberglass
Corp 28 982 411 14,411
Owens Illinois Inc+ 206 6,425 1,258 39,234
PPG Industries Inc 205 10,417 1,464 74,389
Snap-On Inc 138 3,623 477 12,521
Southdown Inc 175 7,394 600 25,350
Stanley Works 112 4,410 766 30,161
USG Corp 200 8,600 500 21,500
Valspar Corp 200 6,650 600 19,950
Vulcan Materials Co 200 22,300 400 44,600
------------ ------------
TOTAL BUILDING MATERIALS &
SERVICES
- VALUE $ 159,181 $ 574,071
- COST $ 125,063 $ 563,287
</TABLE>
104
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,398 $ 29,358 1,268 $ 26,628 2,324 $ 48,804
11,184 458,544 10,197 418,077 19,985 819,385
742 17,066 552 12,696 0 --
1,150 4,600 883 3,532 1,866 7,464
8,784 289,872 400 8,300 20,522 677,226
500 10,375 7,934 261,822 800 16,600
2,199 141,698 1,995 128,553 3,999 257,686
500 13,313 400 10,650 1,000 26,625
2,699 52,968 2,544 49,926 5,512 108,173
6,602 327,624 6,039 299,685 11,580 574,657
------------ ------------ ------------
$ 1,987,672 $ 1,821,846 $ 3,727,424
$ 1,456,790 $ 1,333,977 $ 2,789,058
0.38% 0.50% 0.59%
1,700 $ 80,219 1,600 $ 75,500 3,500 $ 165,156
1,300 50,863 1,200 46,950 2,600 101,725
2,238 95,255 2,150 91,509 3,937 167,569
4,238 104,361 3,778 93,033 9,091 223,866
900 20,588 900 20,588 1,800 41,175
0 -- 0 -- 200 1,700
2,224 80,620 2,144 77,720 4,560 165,300
1,909 41,759 1,791 39,178 3,855 84,328
800 23,350 700 20,431 1,500 43,781
2,489 50,091 3,236 65,125 5,697 114,652
411 10,660 300 7,781 600 15,563
800 22,850 800 22,850 1,700 48,556
197 4,272 0 -- 0 --
200 8,525 200 8,525 400 17,050
1,017 35,659 946 33,169 1,995 69,950
2,841 88,604 2,301 71,762 5,015 156,405
3,243 164,785 2,991 151,980 5,821 295,780
1,061 27,851 1,087 28,534 1,908 50,085
1,053 44,489 978 41,321 2,200 92,950
1,559 61,386 1,487 58,551 3,570 140,569
900 38,700 900 38,700 1,800 77,400
1,100 36,575 1,000 33,250 2,100 69,825
800 89,200 800 89,200 1,700 189,550
------------ ------------ ------------
$ 1,180,662 $ 1,115,657 $ 2,332,935
$ 1,148,976 $ 1,113,713 $ 2,546,284
</TABLE>
105
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
BUSINESS SERVICES
PERCENT OF NET ASSETS 0.13% 0.25%
Accustaff Inc 500 $ 6,250 1,400 $ 17,500
APAC Teleservices Inc 100 313 200 625
Apollo Group Inc 200 6,075 550 16,706
Cendant Corp+ 772 8,926 6,877 79,515
Concord EFS Inc 450 8,888 1,200 23,700
Dun & Bradstreet Corp 180 4,230 1,435 33,723
Ecolab Inc 124 3,449 1,006 27,979
Intl Technology Corp+ 0 -- 0 --
Kelly Services Inc Class A 106 2,716 220 5,638
Manpower Inc 400 8,150 1,100 22,413
Nielson (A C) Corp 73 1,465 453 9,088
Ogden Corp 101 2,329 625 14,414
Olsten Corp 291 1,710 525 3,084
Paychex Inc 727 27,626 1,990 75,620
Paymentech Inc 0 -- 100 1,144
Quintiles Transnational Corp 200 7,150 800 28,600
Reuters Group PLC ADR (UK) 654 31,147 2,213 105,394
Robert Half International
Inc 300 14,400 1,050 50,400
Rollins Inc 388 7,105 210 3,846
Security Dynamics Technology
Inc 0 -- 500 4,688
Teletech Holdings Inc 0 -- 100 838
------------ ------------
TOTAL BUSINESS SERVICES
- VALUE $ 141,929 $ 524,915
- COST $ 171,600 $ 651,609
CHEMICALS
PERCENT OF NET ASSETS 0.61% 1.29%
Air Products & Chemicals Inc 260 $ 7,946 1,896 $ 57,947
Airgas Inc 400 4,750 700 8,313
Albemarle Corp 313 5,262 260 4,371
Autoliv Inc 544 16,048 1,499 44,221
Betz Labs Inc 96 5,904 440 27,060
Cabot Corp 310 6,743 1,040 22,620
ChemFirst Inc 35 602 84 1,444
Clorox Co 94 9,065 808 77,922
Courtaulds PLC ADR (UK) 11,958 80,716 42,819 289,028
Crompton & Knowles Corp 450 6,581 1,040 15,210
Dow Chemical Co 341 26,598 1,789 139,542
Du Pont (E I) De Nemours 1,640 94,607 8,423 485,901
Eastman Chemical Co 124 6,394 646 33,309
Ethyl Corp 1,031 4,382 1,010 4,293
EVI Weatherford Inc+ 580 8,845 1,175 17,919
Ferro Corp 457 9,226 375 7,570
</TABLE>
106
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0.35% 0.44% 0.54%
2,700 $ 33,750 2,400 $ 30,000 5,100 $ 63,750
400 1,250 400 1,250 600 1,875
1,100 33,413 1,050 31,894 2,200 66,825
15,652 180,976 13,082 151,261 27,788 321,299
2,350 46,413 2,150 42,463 4,700 92,825
3,141 73,814 2,743 64,461 6,906 162,291
2,478 68,919 2,058 57,238 4,878 135,669
137 788 0 -- 0 --
389 9,968 319 8,174 885 22,678
2,200 44,825 2,100 42,788 4,400 89,650
918 18,417 707 14,184 1,530 30,696
1,284 29,612 1,206 27,813 2,544 58,671
1,117 6,562 988 5,805 2,216 13,019
3,706 140,828 3,560 135,280 7,568 287,584
0 -- 200 2,288 400 4,575
1,400 50,050 1,400 50,050 2,900 103,675
4,944 235,458 4,831 230,076 8,853 421,624
1,900 91,200 1,850 88,800 3,900 187,200
645 11,812 400 7,325 675 12,361
1,000 9,375 1,000 9,375 2,100 19,688
0 -- 0 -- 300 2,513
------------ ------------ ------------
$ 1,087,430 $ 1,000,525 $ 2,098,468
$ 1,346,206 $ 1,375,617 $ 2,915,749
1.92% 2.45% 2.96%
4,270 $ 130,502 4,052 $ 123,839 7,636 $ 233,375
1,400 16,625 1,400 16,625 3,000 35,625
612 10,289 432 7,263 986 16,577
2,869 84,636 2,733 80,624 5,810 171,395
827 50,860 707 43,481 1,605 98,708
1,972 42,891 1,832 39,846 3,990 86,783
314 5,397 224 3,850 348 5,981
1,810 174,552 1,597 154,011 4,205 405,520
95,146 642,236 93,553 631,483 171,045 1,154,554
1,985 29,031 1,870 27,349 4,030 58,939
4,111 320,658 3,778 294,684 7,497 584,766
19,601 1,130,732 17,308 998,454 42,640 2,459,794
1,415 72,961 1,375 70,898 2,585 133,289
2,029 8,623 1,308 5,559 2,530 10,753
2,204 33,611 2,055 31,339 5,105 77,851
654 13,203 496 10,013 1,222 24,669
</TABLE>
107
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
FMC Corp+ 2 $ 104 238 $ 12,317
Fuller (H B) Co 0 -- 0 --
Geon Co 0 -- 0 --
Georgia Gulf Corp 237 4,073 360 6,188
Goodrich (B F) Co 92 2,490 626 16,941
Grace (W R) Co+ 42 541 636 8,189
Great Lakes Chemical Corp 77 3,013 438 17,137
Hanna (M A) Co 280 3,483 650 8,084
Hercules Inc 92 2,352 778 19,888
IMC Global Inc 436 8,012 1,426 26,203
Imperial Chemical Industries
PLC ADR (UK) 959 40,877 3,641 155,198
International Flavor &
Fragrances 176 6,820 843 32,666
Johns Manville Corp 0 -- 400 5,475
Lawter International Inc 0 -- 0 --
Lubrizol Corp 329 7,526 860 19,673
Lyondell Petrochemical 176 3,795 580 12,506
Millennium Chemicals Inc 310 6,704 1,135 24,544
Mississippi Chemical Corp 11 138 28 352
Monsanto Co 840 45,938 4,481 245,055
Montedison Spa ADR (Italy) 4,254 42,274 15,207 151,120
Morton International Inc 238 5,296 1,072 23,852
Nalco Chemical Co 74 2,141 539 15,597
Octel Corp 19 292 134 2,060
OEA Inc 0 -- 0 --
Olin Corp 270 7,594 660 18,563
Praxair Inc 218 7,821 1,291 46,315
Premark International Inc 461 12,188 806 21,309
Rhone Poulenc Rorer Class A 1,934 88,963 7,055 324,530
Rohm & Haas Co 71 6,128 535 46,177
RPM Inc 472 6,166 1,358 17,739
Rubbermaid Inc 162 4,121 1,229 31,263
Schulman (A) Inc 403 6,398 420 6,668
Sigma-Aldrich Corp 128 3,552 798 22,145
Solutia Inc 543 12,184 1,646 36,932
Terra Industries Inc 500 2,500 400 2,000
Union Carbide Corp 145 5,827 1,071 43,041
USEC Inc 500 7,313 1,400 20,475
Valhi Inc 0 -- 0 --
Wellman Inc 363 4,152 280 3,203
------------ ------------
TOTAL CHEMICALS
- VALUE $ 654,445 $ 2,680,075
- COST $ 657,903 $ 2,470,830
</TABLE>
108
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
628 $ 32,499 681 $ 35,242 1,198 $ 61,997
225 10,688 0 -- 0 --
0 -- 0 -- 300 5,813
745 12,805 465 7,992 640 11,000
1,413 38,239 1,211 32,773 2,353 63,678
1,336 17,201 1,126 14,497 2,898 37,312
1,100 43,038 1,045 40,886 1,912 74,807
1,167 14,515 900 11,194 2,462 30,621
1,716 43,865 1,661 42,459 3,223 82,388
2,745 50,439 2,593 47,646 5,510 101,246
8,053 343,259 7,860 335,033 14,380 612,947
1,874 72,617 1,798 69,672 4,289 166,199
900 12,319 600 8,213 1,800 24,637
677 5,162 0 -- 0 --
1,617 36,989 1,442 32,986 3,200 73,200
1,117 24,085 1,092 23,546 2,245 48,408
2,112 45,672 1,946 42,082 4,246 91,820
105 1,319 74 930 116 1,457
10,379 567,602 9,124 498,969 22,600 1,235,938
33,629 334,188 33,130 329,229 60,617 602,381
2,376 52,866 2,344 52,154 4,114 91,537
1,188 34,378 1,152 33,336 2,099 60,740
300 4,613 261 4,013 478 7,349
308 2,387 223 1,728 0 --
1,278 35,944 1,258 35,381 2,660 74,813
2,940 105,473 2,692 96,576 5,200 186,550
1,533 40,529 1,496 39,550 3,150 83,278
15,736 723,856 15,506 713,276 28,375 1,305,249
1,160 100,123 1,033 89,161 1,972 170,208
2,597 33,923 2,507 32,748 5,385 70,342
2,751 69,979 2,610 66,392 4,926 125,305
686 10,890 616 9,779 1,185 18,812
1,849 51,310 1,719 47,702 3,169 87,940
3,197 71,733 3,020 67,761 6,439 144,475
700 3,500 500 2,500 1,100 5,500
2,504 100,630 2,179 87,569 3,954 158,901
2,800 40,950 2,600 38,025 5,600 81,900
0 -- 0 -- 300 3,731
495 5,662 365 4,175 845 9,665
------------ ------------ ------------
$ 5,962,054 $ 5,534,493 $ 11,570,723
$ 5,454,698 $ 5,082,758 $ 11,103,438
</TABLE>
109
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
COMMERCIAL SERVICES
PERCENT OF NET ASSETS 0.03% 0.04%
Nielson Media Research 60 $ 540 444 $ 3,996
ServiceMaster Co 900 18,844 2,550 53,391
Stewart Enterprises Inc
Class A 500 9,813 1,300 25,513
Valassis Communications Inc+ 100 2,981 300 8,944
------------ ------------
TOTAL COMMERCIAL SERVICES
- VALUE $ 32,178 $ 91,844
- COST $ 32,833 $ 95,801
COMPUTER SOFTWARE
PERCENT OF NET ASSETS 1.06% 2.18%
3Com Corp+ 590 $ 13,976 2,875 $ 68,102
Adobe Systems Inc 122 3,203 563 14,779
Altera Corp+ 420 12,233 1,220 35,533
America Online Inc 1,100 90,130 3,000 245,813
Anixter International Inc 500 8,125 500 8,125
At Home Corp Series A 100 2,825 300 8,550
Autodesk Inc 86 2,010 416 9,724
Automatic Data Processing 409 26,074 2,288 145,860
Bay Networks Inc+ 302 9,060 1,780 53,400
BEA Systems Inc 0 -- 100 1,525
BMC Software Inc 1,024 43,328 3,060 129,476
Broderbund Software Inc 200 2,788 200 2,788
Cadence Design Systems Inc 964 20,365 2,824 59,657
Cambridge Technology
Partners 100 3,244 400 13,000
Ceridian Corp+ 131 6,354 532 25,802
Choicepoint Inc 141 5,587 140 5,548
CIBER Inc 200 5,025 400 10,050
Citrix Systems Inc 200 11,525 550 31,694
Computer Associates
International Inc 764 20,628 4,167 112,509
Computer Sciences Corp 282 15,951 1,232 69,685
Compuware Corp 800 36,350 2,200 99,963
CSK Corp ADR (Japan) 1,916 34,009 7,500 133,125
DST Systems Inc 200 11,300 400 22,600
Electronic Arts Inc 300 11,438 800 30,500
Electronic Data Systems Corp 1,788 59,898 4,530 151,755
First Data Corp 563 11,647 3,600 74,475
Fiserv Inc 325 12,675 1,095 42,705
Gartner Group Inc Class A+ 200 4,625 700 16,188
HBO & Co 618 13,133 3,366 71,528
I2 Technologies Inc 0 -- 200 2,825
IMS Health Inc 180 9,900 1,232 67,760
Information Resources Inc+ 0 -- 0 --
Informix Corp 1,390 4,865 1,320 4,620
</TABLE>
110
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0.06% 0.07% 0.09%
1,023 $ 9,210 888 $ 7,995 2,120 $ 19,080
4,950 103,641 4,650 97,359 10,050 210,422
2,500 49,063 2,300 45,138 5,000 98,125
600 17,888 500 14,906 1,100 32,794
------------ ------------ ------------
$ 179,802 $ 165,398 $ 360,421
$ 188,279 $ 175,302 $ 377,380
3.22% 4.00% 5.29%
6,587 $ 156,030 5,778 $ 136,866 11,626 $ 275,391
1,223 32,104 1,247 32,734 2,304 60,480
2,436 70,948 2,296 66,871 4,880 142,130
5,700 467,044 5,400 442,463 11,600 950,475
500 8,125 700 11,375 1,200 19,500
500 14,250 500 14,250 1,100 31,350
971 22,697 759 17,742 1,817 42,472
5,279 336,536 4,654 296,693 12,148 774,435
4,071 122,130 3,864 115,920 7,210 216,300
200 3,050 200 3,050 400 6,100
5,764 243,889 5,504 232,888 11,760 497,595
200 2,788 200 2,788 500 6,969
5,350 113,019 5,090 107,526 10,930 230,896
700 22,750 600 19,500 1,400 45,500
1,316 63,826 1,169 56,697 3,133 151,950
364 14,424 267 10,580 484 19,179
800 20,100 800 20,100 1,700 42,713
1,050 60,506 1,050 60,506 2,200 126,775
9,686 261,522 8,303 224,181 22,060 595,620
2,752 155,660 2,496 141,180 5,032 284,623
4,100 186,294 3,900 177,206 8,400 381,675
17,900 317,725 17,111 303,720 32,802 582,236
800 45,200 800 45,200 1,700 96,050
1,500 57,188 1,500 57,188 3,100 118,188
9,091 304,549 8,876 297,346 19,000 636,500
8,248 170,631 7,509 155,342 14,049 290,639
2,099 81,842 1,993 77,727 4,242 165,438
1,300 30,063 1,200 27,750 2,500 57,813
7,598 161,458 6,582 139,868 17,006 361,378
300 4,238 200 2,825 400 5,650
2,870 157,850 2,465 135,575 6,360 349,800
403 3,929 0 -- 0 --
3,118 10,913 2,138 7,483 5,180 18,130
</TABLE>
111
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Intuit Inc 200 $ 6,838 700 $ 23,931
J.D. Edwards & Co 100 4,000 400 16,200
Keane Inc 300 12,600 1,000 42,000
LHS Group Inc 100 4,050 200 8,450
Mentor Graphics Corp 600 4,163 700 4,856
Microsoft Corp 3,538 339,426 18,322 1,757,766
MobileMedia Corp 300 150 200 100
National Data Corp 200 7,000 500 17,500
NEC Corp ADR (Japan) 1,183 42,292 4,563 163,127
Netscape Communications Corp 301 5,437 905 16,347
Network Associates Inc 625 20,156 1,875 60,469
Novell Inc+ 535 5,083 2,846 27,037
Objective Systems Integrator
C 0 -- 100 513
Oracle Systems Corp+ 1,406 28,032 7,418 147,896
Parametric Technology Corp 250 2,563 2,106 21,587
Peoplesoft Inc 800 22,500 2,300 64,688
Platinum Technology Inc 300 5,625 1,000 18,750
Renaissance Worldwide Inc 0 -- 400 4,000
Reynolds & Reynolds Co Class
A 346 4,368 920 11,615
Shiva Corp 300 1,294 300 1,294
Siebel Systems Inc 300 5,625 702 13,163
SPS Transaction Services Inc 0 -- 100 3,119
Sterling Commerce Inc+ 377 12,441 1,137 37,521
Sterling Software Inc 300 6,169 900 18,506
Storage Technology Corp 518 11,267 1,570 34,147
Stratus Computer Inc 161 4,045 310 7,789
Structural Dynamics Research 303 2,727 0 --
Sun Microsystems Inc+ 522 20,684 3,050 120,856
Sungard Data Systems Inc 400 12,675 1,300 41,194
Symantec Corp 378 6,190 800 13,100
Synopsys Inc 400 10,450 800 20,900
Total System Services Inc 450 7,256 550 8,869
Veritas Software Corp 200 8,975 600 26,925
Yahoo! Inc 200 13,600 300 20,700
------------ ------------
TOTAL COMPUTER SOFTWARE
- VALUE $ 1,149,952 $ 4,544,579
- COST $ 1,035,521 $ 3,591,221
COMPUTER SYSTEMS
PERCENT OF NET ASSETS 0.57% 1.53%
Adaptec Inc 500 $ 5,750 1,700 $ 19,550
Apple Computer Inc+ 235 7,329 1,090 33,994
Aztec Technology Partners
Inc 0 -- 184 968
Cabletron Systems Inc+ 257 1,799 1,334 9,338
Cisco Systems Inc 1,464 119,864 7,591 621,512
</TABLE>
112
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,300 $ 44,444 1,300 $ 44,444 2,700 $ 92,306
700 28,350 700 28,350 1,400 56,700
1,900 79,800 1,800 75,600 3,800 159,600
400 16,900 300 12,675 800 33,800
852 5,911 1,000 6,938 1,600 11,100
42,940 4,119,555 37,728 3,619,529 93,116 8,933,315
400 200 300 150 700 350
900 31,500 900 31,500 1,900 66,500
11,010 393,608 10,514 375,876 20,099 718,539
1,716 30,995 1,620 29,261 3,545 64,032
3,600 116,100 3,112 100,362 6,575 212,044
6,445 61,227 6,017 57,161 11,183 106,239
0 -- 0 -- 200 1,025
16,917 337,283 14,916 297,388 36,817 734,039
4,698 48,155 4,124 42,271 10,008 102,582
4,400 123,750 4,200 118,125 9,000 253,125
1,900 35,625 1,600 30,000 3,500 65,625
800 8,000 600 6,000 1,700 17,000
1,712 21,614 1,652 20,857 3,500 44,188
600 2,588 400 1,725 600 2,588
1,308 24,525 1,306 24,488 2,716 50,925
0 -- 0 -- 200 6,238
2,154 71,082 1,996 65,868 4,274 141,042
1,800 37,013 1,700 34,956 3,600 74,025
2,968 64,554 2,834 61,639 6,050 131,588
666 16,733 471 11,834 1,350 33,919
434 3,906 319 2,871 0 --
6,929 274,562 6,142 243,377 12,427 492,420
2,600 82,388 2,400 76,050 5,200 164,775
1,636 26,790 1,561 25,561 3,200 52,400
1,600 41,800 1,500 39,188 3,300 86,212
1,000 16,125 1,000 16,125 2,100 33,863
1,100 49,363 1,050 47,119 2,200 98,725
600 41,400 600 41,400 1,200 82,800
------------ ------------ ------------
$ 9,979,124 $ 9,029,828 $ 20,707,579
$ 7,659,998 $ 7,164,557 $ 17,053,866
2.39% 2.90% 3.86%
3,200 $ 36,800 2,900 $ 33,350 6,200 $ 71,300
2,447 76,316 2,328 72,604 4,244 132,360
384 2,016 323 1,694 729 3,829
3,094 21,658 2,697 18,879 4,926 34,482
17,853 1,461,713 15,647 1,281,098 38,701 3,168,643
</TABLE>
113
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Cognex Corp 0 $ -- 300 $ 4,200
Compaq Computer Corp 2,267 63,334 13,322 372,182
Comverse Technology Inc+ 200 7,700 600 23,100
Data General Corp+ 64 480 444 3,330
Dell Computer Corp 908 90,799 4,776 477,599
EMC Corp 638 28,830 3,800 171,713
Exabyte Corp+ 0 -- 0 --
Gateway 2000 Inc+ 200 9,463 700 33,119
Harris Corp 104 3,315 692 22,058
Hewlett-Packard Co 1,374 66,724 8,303 403,213
Intergraph Corp 54 341 367 2,317
International Business
Machine Corp 1,380 155,422 7,002 788,599
Iomega Corp 1,200 4,650 3,300 12,169
Komag Inc 400 1,100 600 1,650
NCR Corp 471 12,452 1,459 38,572
Quantum Corp 500 5,719 1,900 21,731
Rational Software Corp 0 -- 900 10,013
Seagate Technology Inc+ 397 6,948 1,979 34,633
Sequent Computer Systems 340 2,189 0 --
Shared Medical System Corp 42 2,242 155 8,273
Silicon Graphics Inc+ 284 2,574 1,549 14,038
Sybase Inc 700 4,813 700 4,813
Unisys Corp+ 280 5,023 1,892 33,938
Unova Inc+ 34 542 434 6,917
Wallace Computer Services
Inc 90 1,457 200 3,238
Western Digital Corp 700 5,775 1,300 10,725
Xylan Corp 100 1,525 100 1,525
------------ ------------
TOTAL COMPUTER SYSTEMS
- VALUE $ 618,159 $ 3,189,027
- COST $ 524,272 $ 2,042,454
CONTAINER & PACKAGING
PERCENT OF NET ASSETS 0.07% 0.15%
Ball Corp 54 $ 2,018 196 $ 7,326
Crown Cork & Seal Co 185 6,059 969 31,735
First Brands Corp 486 9,690 480 9,570
International Paper Co 422 15,614 2,516 93,092
Jefferson Smurfit Corp 700 7,875 800 9,000
Jefferson Smurfit Group ADR
(Ireland) 685 14,385 2,460 51,660
Sonoco Products 426 10,916 1,464 37,515
Temple-Inland Inc 49 2,196 485 21,734
</TABLE>
114
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
700 $ 9,800 600 $ 8,400 1,300 $ 18,200
30,437 850,334 26,894 751,350 54,036 1,509,630
1,200 46,200 1,100 42,350 2,400 92,400
1,001 7,508 772 5,790 1,522 11,415
11,204 1,120,399 9,822 982,199 24,388 2,438,799
8,688 392,589 7,594 343,154 20,046 905,829
340 1,828 0 -- 0 --
2,800 132,475 2,500 118,281 2,600 123,013
1,470 46,856 1,433 45,677 2,527 80,548
19,120 928,515 16,901 820,754 33,799 1,641,363
861 5,435 586 3,699 992 6,262
16,410 1,848,175 14,448 1,627,205 36,083 4,063,847
6,100 22,494 6,000 22,125 12,900 47,569
1,100 3,025 800 2,200 1,100 3,025
2,781 73,523 2,664 70,430 5,725 151,355
3,580 40,946 2,970 33,969 6,300 72,056
1,800 20,025 1,600 17,800 3,200 35,600
4,413 77,228 4,238 74,165 7,966 139,405
471 3,032 341 2,195 0 --
461 24,606 364 19,429 904 48,251
3,639 32,978 3,278 29,707 5,761 52,209
1,400 9,625 1,200 8,250 2,500 17,188
4,511 80,916 4,000 71,750 8,191 146,926
1,058 16,862 818 13,037 1,661 26,472
300 4,856 210 3,399 400 6,475
2,500 20,625 2,400 19,800 5,100 42,075
0 -- 100 1,525 200 3,050
------------ ------------ ------------
$ 7,419,358 $ 6,546,265 $ 15,093,576
$ 4,665,530 $ 4,135,490 $ 10,417,781
0.22% 0.29% 0.32%
642 $ 23,995 538 $ 20,108 904 $ 33,787
2,329 76,275 2,055 67,301 4,137 135,487
694 13,837 704 14,036 1,060 21,134
5,688 210,456 5,233 193,621 9,964 368,668
1,600 18,000 1,600 18,000 3,300 37,125
5,490 115,290 5,337 112,077 9,735 204,435
2,780 71,238 2,684 68,778 5,720 146,575
1,041 46,650 959 42,975 1,835 82,231
</TABLE>
115
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Tenneco Inc 278 $ 8,809 1,340 $ 42,461
Tupperware Corp 63 1,189 500 9,438
------------ ------------
TOTAL CONTAINER & PACKAGING
- VALUE $ 78,751 $ 313,531
- COST $ 97,723 $ 407,240
ELECTRICAL EQUIPMENT
PERCENT OF NET ASSETS 0.48% 1.24%
Aeroquip-Vickers Inc 52 $ 2,096 244 $ 9,836
Alliance Semiconductor Corp 0 -- 0 --
Arrow Electronics Inc 386 5,066 1,192 15,645
Avnet Inc 230 10,868 550 25,988
FORE Systems Inc 400 6,900 1,200 20,700
General Electric Co 4,683 374,639 24,282 1,942,559
Grainger (W W) Inc 82 3,213 794 31,115
Handleman Co 59 380 132 850
Hitachi Ltd ADR (Japan) 732 36,143 2,984 147,335
Hubbell Inc Class B 332 11,869 866 30,960
Masco Corp 512 11,776 2,768 63,664
Motorola Inc 826 35,570 4,801 206,743
National Service Industries
Inc 39 1,453 342 12,740
Raychem Corp 54 1,566 709 20,561
Symbol Technologies Inc 285 11,685 672 27,552
Thomas & Betts Corp 68 2,316 454 15,464
------------ ------------
TOTAL ELECTRICAL EQUIPMENT
- VALUE $ 515,540 $ 2,571,712
- COST $ 457,420 $ 1,899,324
ELECTRONICS
PERCENT OF NET ASSETS 0.84% 1.82%
Advanced Micro Devices+ 200 $ 2,638 1,086 $ 14,322
American Power Conversion 300 8,100 1,180 31,860
AMP Inc 289 10,314 1,720 61,383
Analog Devices Inc+ 801 11,264 2,326 32,709
Applied Materials Inc 515 12,650 2,946 72,361
Atmel Corp 662 3,993 1,360 8,203
C-Cube Microsystems Inc 100 1,481 300 4,444
Canon Inc ADR (Japan) 1,390 28,495 5,530 113,365
CBS Corp 1,010 26,260 5,777 150,202
Cirrus Logic Inc 634 3,844 780 4,729
Commscope Inc 50 662 346 4,585
Cypress Semiconductor Corp 800 4,900 840 5,145
EG&G Inc 25 586 353 8,273
Electronics for Imaging Inc 400 5,850 500 7,313
Emerson Electric Co 655 37,335 3,378 192,546
</TABLE>
116
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,053 $ 96,742 2,947 $ 93,383 5,642 $ 178,781
1,136 21,442 1,009 19,045 2,302 43,450
------------ ------------ ------------
$ 693,925 $ 649,324 $ 1,251,673
$ 887,776 $ 829,026 $ 1,704,151
1.92% 2.35% 3.18%
552 $ 22,253 433 $ 17,455 996 $ 40,151
0 -- 0 -- 250 625
2,298 30,161 2,220 29,138 4,750 62,344
1,014 47,912 959 45,313 2,015 95,209
2,300 39,675 2,200 37,950 4,700 81,075
56,704 4,536,319 49,893 3,991,439 123,137 9,850,959
1,812 71,008 1,770 69,362 3,286 128,770
467 3,006 307 1,976 521 3,354
7,158 353,426 6,814 336,441 13,076 645,628
1,508 53,911 1,434 51,266 3,202 114,472
6,228 143,244 5,834 134,182 10,842 249,366
11,057 476,142 10,008 430,969 19,599 843,982
771 28,720 774 28,831 1,319 49,133
1,623 47,067 1,366 39,614 3,262 94,598
1,377 56,457 1,332 54,612 2,787 114,267
1,010 34,403 973 33,143 1,754 59,746
------------ ------------ ------------
$ 5,943,704 $ 5,301,691 $ 12,433,679
$ 4,394,557 $ 4,053,513 $ 9,890,493
2.80% 3.51% 4.31%
2,577 $ 33,984 2,422 $ 31,940 4,484 $ 59,133
2,194 59,238 2,109 56,943 4,460 120,420
4,069 145,212 3,870 138,111 7,163 255,630
4,438 62,409 4,161 58,514 8,929 125,564
6,712 164,864 5,919 145,385 12,020 295,241
2,666 16,079 2,688 16,212 5,626 33,932
300 4,444 400 5,925 700 10,369
14,245 292,023 13,605 278,903 26,020 533,410
13,174 342,524 12,122 315,172 23,406 608,556
1,496 9,070 1,066 6,463 1,510 9,154
792 10,494 212 8,109 1,552 20,564
1,364 8,354 1,424 8,722 3,170 19,416
972 22,781 723 16,945 1,467 34,383
1,000 14,625 1,000 14,625 2,000 29,250
7,695 438,615 6,766 385,662 14,523 827,811
</TABLE>
117
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Etec Systems Inc 0 $ -- 200 $ 4,825
Fuji Photo Film Co Ltd ADR
(Japan) 975 31,688 3,270 106,275
General Instrument Corp+ 0 -- 0 --
General Motors Class H 500 18,063 1,500 54,187
General Semiconductor Inc 37 238 260 1,674
General Signal Corp 35 1,286 341 12,532
Honeywell Inc 184 11,500 1,039 64,938
Imation Corp 276 4,330 516 8,095
Input/Output Inc 500 4,875 500 4,875
Integrated Device Technology
Inc 700 3,216 800 3,675
Intel Corp 2,401 170,920 12,601 897,033
International Rectifier Corp 500 2,125 500 2,125
Jabil Circuit 0 -- 200 4,700
Johnson Controls Inc 96 4,110 700 29,969
KLA Instruments Corp+ 104 2,210 736 15,640
Kyocera Corp ADR (Japan) 430 37,571 1,519 132,723
Lam Research Corp 300 3,281 300 3,281
Lattice Semiconductor 100 2,400 300 7,219
Lexmark International Group
Cl 300 18,169 800 48,450
Linear Technology Corp 386 18,142 1,120 52,640
Litton Industries Inc 201 9,648 490 23,520
LSI Logic Corp+ 128 1,568 1,164 14,259
Macromedia Inc 400 5,025 400 5,025
Matsushita Electric
Industries Co 257 35,289 1,033 141,844
Maxim Integrated Products
Inc 600 16,500 1,800 49,500
MEMC Electronic Materials
Inc 300 1,613 300 1,613
Microchip Technology Inc 400 7,325 800 14,650
Micron Electronics Inc 0 -- 200 2,350
Micron Technology Inc+ 335 7,621 1,712 38,948
Molex Inc 316 7,663 596 14,453
Molex Inc Class A 312 7,254 978 22,739
National Semiconductor+ 266 2,427 1,312 11,972
Novellus System Inc 200 5,325 500 13,313
Perkin-Elmer Corp 29 1,678 406 23,497
Philips Electronics NV ADR
(Netherlands) 443 26,552 1,747 104,711
Pioneer Electronics Corp 2,192 36,168 8,617 142,181
Pitney Bowes Inc 416 20,644 2,046 101,533
Pixar Inc 0 -- 100 2,881
Policy Management Systems
Corp 496 20,708 340 14,195
Premier Farnell PLC ADR (UK) 2,249 15,462 8,119 55,818
Rambus Inc 0 -- 100 4,775
Raytheon Co Class B 384 17,520 2,773 126,518
Read-Rite Corp 400 2,200 500 2,750
Sanmina Corp 200 6,125 400 12,350
</TABLE>
118
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
400 $ 9,650 300 $ 7,238 700 $ 16,888
9,234 300,105 8,836 287,170 16,900 549,250
2,800 55,650 2,400 47,700 0 --
2,900 104,763 2,800 101,150 5,900 213,137
594 3,824 459 2,955 1,164 7,493
861 31,642 799 29,363 1,598 58,727
2,289 143,063 2,152 134,500 4,172 260,750
702 11,013 731 11,468 1,617 25,367
1,000 9,750 700 6,825 1,100 10,725
1,700 7,809 800 3,675 2,100 9,647
29,506 2,100,457 25,925 1,845,535 64,112 4,563,972
1,000 4,250 700 2,975 1,100 4,675
400 9,400 300 7,050 600 14,100
1,581 67,687 1,435 61,436 2,750 117,734
1,684 35,785 1,460 31,025 2,628 55,845
3,631 317,259 3,505 306,249 6,702 585,587
500 5,469 500 5,469 1,200 13,125
600 14,438 500 12,031 1,300 31,281
1,600 96,900 1,500 90,844 3,300 199,856
2,100 98,700 2,010 94,470 4,350 204,450
908 43,584 903 43,344 1,979 94,992
2,742 33,590 2,441 29,902 4,460 54,635
700 8,794 500 6,281 900 11,306
2,561 351,657 2,371 325,568 4,616 633,835
3,400 93,500 3,200 88,000 6,800 187,000
400 2,150 400 2,150 800 4,300
1,400 25,638 1,350 24,722 2,900 53,106
400 4,700 300 3,525 500 5,875
3,911 88,975 3,635 82,696 6,977 158,727
1,140 27,645 1,118 27,112 2,283 55,363
1,845 42,896 1,788 41,571 3,776 87,792
3,284 29,967 2,844 25,952 5,246 47,870
900 23,963 900 23,963 1,900 50,588
889 51,451 743 43,001 1,887 109,210
3,781 226,624 3,697 221,589 6,766 405,537
20,604 339,966 19,837 327,310 37,956 626,274
4,888 242,567 4,164 206,638 10,374 514,810
300 8,644 200 5,763 400 11,525
606 25,301 516 21,543 880 36,740
18,099 124,431 17,484 120,203 32,610 224,194
300 14,325 200 9,550 500 23,875
6,200 282,875 5,723 261,112 11,151 508,764
600 3,300 800 4,400 1,700 9,350
800 24,700 800 24,700 1,600 49,400
</TABLE>
119
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
SCI Systems Inc+ 200 $ 4,588 800 $ 18,350
Sensormatic Electronics 535 4,079 870 6,634
Solectron Corp+ 500 20,656 1,500 61,969
SONY Corp ADR (Japan) 468 33,082 1,822 128,793
Tektronix Inc 3 46 376 5,711
Teradyne Inc 376 6,533 1,220 21,198
Texas Instruments Inc 560 26,705 3,097 147,688
Thermo Instrument Systems
Inc 250 3,813 256 3,904
Vishay Intertechnology Inc 463 4,862 468 4,914
Vitesse Semiconductor Corp 300 8,081 900 24,413
VLSI Technology Inc 200 1,813 400 3,625
Xerox Corp 485 42,589 2,441 214,350
Xilinx Inc 247 7,534 1,000 30,500
Zenith Electronics Corp 44 17 89 35
------------ ------------
TOTAL ELECTRONICS
- VALUE $ 911,209 $ 3,783,775
- COST $ 1,059,109 $ 3,590,015
ENERGY & RELATED
PERCENT OF NET ASSETS 1.09% 2.79%
AGL Resources Inc 538 $ 9,852 440 $ 8,058
Amerada Hess Corp 142 6,976 750 36,844
Amoco Corp 0 -- 7,700 348,905
Anadarko Petroleum Corp 182 5,233 950 27,313
Apache Corp 166 3,797 758 17,339
Ashland Inc 109 4,966 606 27,611
Atlantic Richfield Corp 423 24,534 2,575 149,350
British Petroleum Co PLC ADR
(UK) 1,078 78,828 3,900 285,188
Burlington Resources Inc 284 8,396 1,426 42,156
Chesapeake Energy Corp 0 -- 400 625
Chevron Corp 920 68,137 5,255 389,197
Coastal Corp 324 8,424 1,708 44,408
Columbia Gas System Inc 62 3,060 677 33,656
Consolidated Natural Gas Co 142 6,221 751 32,903
Cooper Cameron Corp 200 4,250 700 14,875
Devon Energy Corp 0 -- 200 5,288
Diamond Offshore Drilling
Inc 400 8,350 900 18,788
Dresser Industries Inc 214 5,470 1,399 35,762
Dynegy Inc 0 -- 0 --
Eastern Enterprises 39 1,543 200 7,913
EEX Corp 137 608 1,213 5,383
ELF Aquitaine ADR (France) 1,306 63,830 4,812 235,187
Enron Corp 428 18,110 2,623 110,986
Enron Oil & Gas Co 300 3,900 900 11,700
Exxon Corp 3,357 219,673 19,708 1,289,641
</TABLE>
120
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,500 $ 34,406 1,400 $ 32,113 3,100 $ 71,106
1,723 13,138 1,048 7,991 1,885 14,373
2,900 119,806 2,800 115,675 6,000 247,875
4,240 299,715 4,083 288,617 7,816 552,494
924 14,033 808 12,272 1,874 28,461
2,290 39,789 2,200 38,225 4,650 80,794
7,181 342,444 6,345 302,577 12,757 608,349
450 6,863 312 4,758 921 14,045
926 9,723 809 8,495 1,731 18,176
1,700 46,113 1,600 43,400 3,400 92,225
1,000 9,063 800 7,250 1,700 15,406
5,710 501,409 5,027 441,433 12,925 1,134,977
1,859 56,700 1,774 54,107 3,820 116,510
279 109 230 90 367 143
------------ ------------ ------------
$ 8,666,884 $ 7,904,357 $ 16,885,444
$ 8,087,262 $ 7,634,159 $ 17,180,886
4.24% 5.38% 6.00%
798 $ 14,613 558 $ 10,218 520 $ 9,523
1,724 84,692 1,646 80,860 2,978 146,294
17,692 801,669 16,084 728,806 31,096 1,409,037
2,222 63,883 1,978 56,868 3,812 109,595
1,841 42,113 1,648 37,698 3,074 70,318
1,405 64,015 1,295 59,003 2,404 109,532
5,892 341,736 5,352 310,416 10,520 610,160
8,587 627,924 8,382 612,934 15,237 1,114,206
3,318 98,088 3,054 90,284 5,682 167,974
1,000 1,563 500 781 1,000 1,563
12,033 891,194 10,961 811,798 21,189 1,569,309
3,852 100,152 3,620 94,120 6,990 181,740
1,499 74,575 1,485 73,879 2,736 136,116
1,725 75,577 1,641 71,896 3,113 136,388
1,300 27,625 1,200 25,500 2,600 55,250
500 13,219 400 10,575 900 23,794
1,800 37,575 1,700 35,488 3,600 75,150
3,238 82,771 3,027 77,378 5,774 147,598
1,600 15,300 0 -- 0 --
426 16,854 382 15,113 686 27,140
1,934 8,582 2,344 10,402 4,867 21,597
10,829 529,267 10,649 520,470 19,403 948,322
6,085 257,472 5,496 232,550 10,835 458,456
1,700 22,100 1,700 22,100 3,500 45,500
45,066 2,949,005 41,126 2,691,182 79,342 5,191,941
</TABLE>
121
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Freeport-McMoRan Sulphur Inc 74 $ 657 76 $ 675
Global Marine Inc 700 6,563 2,100 19,688
Halliburton Co 461 12,245 2,021 53,683
Helmerich & Payne Inc 90 1,463 420 6,825
Indiana Energy Inc 0 -- 0 --
Kerr-McGee Corp 43 1,661 348 13,442
MarketSpan Corp 0 -- 0 --
MCN Corp 0 -- 0 --
Mobil Corp 1,029 71,129 6,320 436,869
Murphy Oil Corp 293 10,347 580 20,481
Nabors Industries Inc 600 7,088 1,300 15,356
National Fuel Gas Co 0 -- 0 --
NICOR Inc 44 1,708 350 13,584
Noble Affiliates Inc 338 7,816 730 16,881
Noble Drilling Corp 600 6,600 1,800 19,800
Occidental Petroleum Corp 600 11,100 2,960 54,760
Ocean Energy Inc 500 4,438 1,620 14,378
ONEOK Inc 49 1,473 240 7,215
Oryx Energy Co+ 199 2,475 842 10,472
Parker Drilling Co 0 -- 0 --
Pennzoil Co 32 1,144 338 12,084
Peoples Energy Corp 63 2,087 260 8,613
Phillips Petroleum Co 319 13,019 2,079 84,849
Pioneer Natural Resources
C.L.C. 376 5,523 1,297 19,050
Pogo Producing Co 300 3,581 300 3,581
Pride International Inc 0 -- 400 3,175
Quaker State Corp 0 -- 0 --
Questar Corp 454 7,378 1,080 17,550
Reading & Bates Falcon Corp 472 4,248 1,426 12,834
Repsol SA 637 27,988 2,500 109,844
Rowan Co Inc+ 126 1,166 704 6,512
Royal Dutch Petroleum Corp 3,356 133,400 12,068 479,702
Santa Fe Energy Resources
Inc 83 623 809 6,068
Schlumberger Ltd 675 29,573 3,780 165,611
Seagull Energy Corp 391 3,470 610 5,414
Services (B J) Co 400 5,050 1,000 12,625
Sonat Offshore Drilling Co 132 3,572 936 25,331
Sun Co Inc 115 3,802 758 25,061
Texaco Inc 742 41,227 4,386 243,697
Tosco Corp 671 14,762 1,940 42,680
Total Compagnie Francaise
des Petroles SA ADR
(France) 1,828 87,857 6,475 311,205
Transocean Offshore Inc 400 9,825 1,200 29,475
TransTexas Gas Corp 0 -- 0 --
</TABLE>
122
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
144 $ 1,278 75 $ 666 143 $ 1,269
4,015 37,641 3,800 35,625 8,200 76,875
4,776 126,63 4,214 111,934 10,650 282,891
920 14,950 840 13,650 1,620 26,325
352 10,098 0 -- 0 --
862 33,295 784 30,282 1,574 60,796
719 19,683 0 -- 0 --
930 16,333 0 -- 0 --
14,426 997,196 13,173 910,583 25,365 1,753,355
1,077 38,032 997 35,207 2,270 80,159
2,385 28,173 2,329 27,511 5,000 59,063
582 23,935 0 -- 0 --
909 35,281 801 31,089 1,509 58,568
1,373 31,751 1,258 29,091 2,820 65,212
3,400 37,400 3,300 36,300 7,000 77,000
6,727 124,450 5,879 108,761 11,085 205,072
2,610 23,164 2,380 21,123 5,190 46,061
603 18,128 507 15,242 920 27,658
1,889 23,494 1,713 21,305 4,063 50,534
844 3,376 619 2,476 0 --
932 33,319 887 31,710 1,484 53,053
674 22,326 582 19,279 1,141 37,796
4,846 197,777 4,375 178,555 8,604 351,151
2,434 35,749 2,286 33,576 4,962 72,879
600 7,163 500 5,969 1,100 13,131
800 6,350 800 6,350 1,700 13,494
419 5,264 299 3,756 0 --
2,020 32,825 1,880 30,550 4,060 65,975
2,816 25,344 2,698 24,282 5,742 51,678
5,425 238,361 5,350 235,066 9,750 428,391
1,764 16,317 1,472 13,616 3,279 30,331
26,752 1,063,391 26,287 1,044,907 48,174 1,914,916
1,875 14,063 1,239 9,293 2,826 21,195
8,694 380,906 7,646 334,990 19,746 865,122
1,248 11,076 1,103 9,789 2,275 20,191
1,900 23,988 1,900 23,988 4,000 50,500
1,960 53,043 1,874 50,715 3,526 95,422
1,813 59,942 1,626 53,760 3,087 102,064
9,972 554,069 9,133 507,452 17,503 972,510
3,667 80,674 3,477 76,494 7,435 163,570
14,304 687,486 14,078 676,624 25,719 1,236,118
2,200 54,038 2,100 51,581 4,500 110,531
0 -- 0 -- 300 1,144
</TABLE>
123
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ultramar Diamond Shamrock
Corp 410 $ 9,481 1,255 $ 29,022
Union Pacific Resources
Group 332 2,843 2,058 17,622
Unocal Corp 384 12,024 1,991 62,343
USX--Marathon Group 415 10,790 2,320 60,320
Utilicorp United Inc 0 -- 0 --
Valero Energy Corp 180 3,218 770 13,764
Vastar Resources Inc 200 7,600 200 7,600
Washington Gas & Light 464 11,020 360 8,550
Williams Co Inc 610 14,030 3,428 78,844
Witco Corp 316 6,636 780 16,380
------------ ------------
TOTAL ENERGY & RELATED
- VALUE $ 1,177,858 $ 5,802,591
- COST $ 1,212,302 $ 5,415,656
ENGINEERING & CONSTRUCTION
PERCENT OF NET ASSETS 0.04% 0.07%
Armstrong World Industries
Inc 102 $ 4,896 294 $ 14,112
Centex Corp 114 4,033 498 17,617
Clayton Homes Inc 626 9,664 1,283 19,806
Fleetwood Enterprises Inc 32 1,070 328 10,968
Fluor Corp 123 4,866 649 25,676
Foster Wheeler Corp 102 1,256 341 4,199
Granite Construction Inc 0 -- 0 --
Kaufman & Broad Home Corp 59 1,261 308 6,584
Pulte Corp 100 2,888 374 10,799
Rouse Co 400 11,500 900 25,875
------------ ------------
TOTAL ENGINEERING &
CONSTRUCTION
- VALUE $ 41,434 $ 135,636
- COST $ 35,963 $ 143,121
ENTERTAINMENT & LEISURE
PERCENT OF NET ASSETS 0.19% 0.52%
AMF Bowling Inc 0 $ -- 200 $ 2,413
Ascent Entertainment Group 249 1,930 293 2,271
Bally Total Fitness Holding
Corp 26 393 76 1,159
Boyd Gaming Corp 0 -- 200 800
Brunswick Corp 196 2,928 835 12,473
Callaway Golf Co 296 2,942 980 9,739
Circus Circus Entertainment
Inc 629 6,447 1,230 12,607
Coleman Co Inc 0 -- 200 2,025
Disney (Walt) Co 2,769 75,973 16,516 453,157
Gaylord Entertainment Co
Class A 105 2,802 105 2,802
Grand Casinos Inc 400 3,500 400 3,500
Harrah's Entertainment Inc+ 108 1,559 797 11,507
</TABLE>
124
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,443 $ 56,494 2,336 $ 54,020 4,925 $ 113,891
4,633 39,670 4,322 37,007 8,093 69,296
4,385 137,305 4,066 127,317 8,144 255,009
5,339 138,814 4,866 126,516 9,357 243,282
675 23,245 0 -- 0 --
1,464 26,169 1,384 24,739 2,860 51,123
500 19,000 400 15,200 900 34,200
624 14,820 454 10,783 440 10,450
7,749 178,227 7,129 163,967 13,847 318,481
1,552 32,592 1,522 31,962 3,195 67,095
------------ ------------ ------------
$ 13,155,892 $ 12,124,977 $ 23,471,330
$ 12,001,094 $ 11,175,493 $ 23,901,443
0.10% 0.12% 0.13%
738 $ 35,424 689 $ 33,072 1,303 $ 62,544
1,090 38,559 1,104 39,054 1,812 64,100
2,445 37,745 2,320 35,815 4,907 75,752
713 23,841 670 22,403 1,165 38,955
1,539 60,887 1,486 58,790 2,728 107,926
732 9,013 683 8,409 1,254 15,440
405 9,619 0 -- 0 --
734 15,689 647 13,830 1,189 25,415
786 22,696 742 21,425 1,266 36,556
1,700 48,875 1,600 46,000 3,400 97,750
------------ ------------ ------------
$ 302,348 $ 278,798 $ 524,438
$ 317,874 $ 292,038 $ 597,603
0.79% 0.99% 1.13%
400 $ 4,825 300 $ 3,619 500 $ 6,031
400 3,100 397 3,077 679 5,262
185 2,821 116 1,769 223 3,401
0 -- 300 1,200 700 2,800
1,962 29,307 1,660 24,796 3,140 46,904
1,858 18,464 1,756 17,450 3,816 37,922
2,322 23,801 2,262 23,186 4,795 49,149
0 -- 0 -- 200 2,025
37,698 1,034,338 34,404 943,959 66,483 1,824,126
140 3,736 171 4,564 250 6,672
700 6,125 500 4,375 900 7,875
1,832 26,450 1,702 24,573 3,218 46,460
</TABLE>
125
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Hasbro Inc 198 $ 6,200 1,105 $ 34,600
International Game
Technology Inc 497 9,629 1,600 31,000
Mattel Inc 371 12,011 2,214 71,678
Metro-Goldwyn-Mayer Inc 0 -- 200 3,438
MGM Grand Inc 100 2,869 100 2,869
Mirage Resorts Inc+ 297 4,418 1,376 20,468
Navigant International Inc 0 -- 92 547
Polaroid Corp 34 956 337 9,478
Spelling Entertainment Group
I 0 -- 0 --
Tiffany & Co 126 4,686 400 14,875
Time Warner Inc 787 63,255 4,798 385,638
Topp Inc 512 1,280 0 --
------------ ------------
TOTAL ENTERTAINMENT &
LEISURE
- VALUE $ 203,778 $ 1,089,044
- COST $ 217,409 $ 950,629
ENVIRONMENTAL CONTROL
PERCENT OF NET ASSETS 0.11% 0.19%
Allied Waste Industries Inc 500 $ 9,500 1,400 $ 26,600
Browning-Ferris Industries
Inc 247 8,028 1,523 49,498
Mid American Waste Systems
Inc+ 0 -- 0 --
Republic Industries Inc 1,800 31,838 5,100 90,206
Safety-Kleen Corp 349 1,025 1,727 5,073
U.S. Filter Corp+ 700 12,600 2,200 39,600
Waste Management Inc+ 1,337 58,995 4,179 184,398
------------ ------------
TOTAL ENVIRONMENTAL CONTROL
- VALUE $ 121,986 $ 395,375
- COST $ 131,804 $ 447,676
FOOD & RELATED
PERCENT OF NET ASSETS 0.94% 1.87%
Albertson's Inc 305 $ 15,422 1,980 $ 100,114
American Stores Co 461 13,369 2,187 63,423
Archer-Daniels-Midland Co 945 14,175 4,834 72,517
Bestfoods 486 24,391 2,164 108,606
Bob Evans Farms Inc 468 8,629 360 6,638
Boston Chicken Inc 600 581 500 484
Brinker International Inc 1,056 18,084 990 16,954
Brown-Forman Corp Class B 74 4,440 543 32,580
Campbell Soup Co 700 35,263 3,429 172,736
CKE Restaurants Inc 200 6,200 400 12,400
ConAgra Inc 888 21,978 3,727 92,243
Corn Product International
Inc 60 1,421 295 6,988
Cracker Barrel Old Country
Store Inc 249 6,085 910 22,238
Darden Restaurants Inc 160 2,480 1,129 17,499
</TABLE>
126
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,523 $ 79,001 2,312 $ 72,395 4,261 $ 133,423
3,072 59,520 2,917 56,517 6,145 119,059
5,113 165,533 4,665 151,029 11,763 380,827
300 5,156 200 3,438 400 6,875
200 5,738 200 5,738 450 12,909
3,280 48,790 3,129 46,544 5,674 84,401
192 1,140 161 958 365 2,165
906 25,481 747 21,009 1,402 39,431
0 -- 0 -- 400 2,400
880 32,725 860 31,981 1,700 63,219
10,919 877,615 9,887 794,667 18,946 1,522,784
722 1,805 527 1,318 0 --
------------ ------------ ------------
$ 2,455,471 $ 2,238,162 $ 4,406,120
$ 2,063,519 $ 1,846,307 $ 3,896,291
0.27% 0.34% 0.41%
2,700 $ 51,300 2,600 $ 49,400 5,500 $ 104,500
3,388 110,110 3,051 99,158 6,169 200,493
372 163 0 -- 0 --
9,600 169,800 9,100 160,956 19,600 346,675
3,949 11,600 3,467 10,184 5,948 17,472
4,100 73,800 3,600 64,800 7,700 138,600
9,630 424,924 8,683 383,137 18,104 798,839
------------ ------------ ------------
$ 841,697 $ 767,635 $ 1,606,579
$ 953,484 $ 889,560 $ 1,836,856
2.77% 3.52% 4.36%
4,530 $ 229,048 4,138 $ 209,228 7,984 $ 403,691
5,044 146,276 4,745 137,605 8,930 258,970
10,927 163,910 10,433 156,492 19,432 291,485
5,070 254,451 4,466 224,137 11,544 579,365
752 13,865 472 8,703 1,250 23,047
700 678 700 678 1,100 1,066
1,871 32,041 1,171 20,053 2,130 36,476
1,255 75,300 1,245 74,700 2,195 131,700
7,922 399,071 6,971 351,164 18,429 928,361
800 24,800 800 24,800 1,700 52,700
8,272 204,732 7,653 189,412 18,871 467,057
696 16,487 569 13,478 1,368 32,405
1,711 41,813 1,571 38,391 3,325 81,255
2,679 41,525 2,566 39,773 4,853 75,221
</TABLE>
127
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Dave & Buster's Inc 0 $ -- 0 $ --
Dean Foods Co 224 9,856 540 23,760
DEKALB Genetics Corp Class B 100 8,663 300 25,988
Dole Food Inc 246 10,639 710 30,708
Earthgrains Co 56 1,540 292 8,030
Fleming Co Inc 2 24 291 3,474
Flowers Industries Inc 509 9,067 1,220 21,731
Food Lion Inc Class A 1,100 11,344 2,300 23,719
Food Lion Inc Class B 1,400 13,913 2,600 25,838
General Mills Inc 210 13,742 1,232 80,619
General Nutrition Co Inc+ 400 5,325 1,200 15,975
Great Atlantic & Pacific Tea
Co 69 1,643 293 6,977
Hannaford Brothers Co 236 9,809 460 19,119
Heinz (H J) Co 490 26,123 2,738 145,970
Hershey Foods Corp 214 14,980 1,055 73,850
Hormel Foods Corp 200 5,513 700 19,294
Host Marriott Services Corp 240 2,370 240 2,370
IBP Inc 432 7,155 1,320 21,863
Imperial Holly Inc 0 -- 0 --
International Home Foods Inc 0 -- 400 6,700
International Multifoods
Corp 0 -- 0 --
Interstate Bakeries Corp 200 5,213 600 15,638
Keebler Foods Co+ 200 5,163 500 12,906
Kellogg Co 556 16,958 3,059 93,300
Koninklijke AholdNV ADR
(Netherlands) 2,565 72,140 9,208 258,975
Kroger Co+ 341 15,345 1,901 85,545
Lancaster Colony Corp 207 5,977 490 14,149
Lance Inc 0 -- 0 --
Lone Star Steakhouse &
Saloon 300 2,550 400 3,400
Luby's Cafeteria Inc 45 686 219 3,340
McCormick & Co Inc 288 8,370 800 23,250
McDonald's Corp 969 54,325 5,490 307,783
Michael Foods Inc 0 -- 0 --
Nabisco Holdings Corp Class
A 200 6,613 100 3,306
NPC International Inc 0 -- 0 --
Outback Steakhouse Inc 200 6,013 500 15,031
Pioneer Hi Bred
International Inc 405 13,669 1,437 48,499
Planet Hollywood
International 0 -- 200 950
Quaker Oats Co 142 7,544 1,073 57,003
Ralston-Purina Group 465 12,235 2,388 62,834
Richfood Holdings Inc 0 -- 500 10,281
RJR Nabisco Holdings Corp 1,370 29,712 3,943 85,514
Ruby Tuesday Inc 384 5,400 200 2,813
Ryans Family Steak House 119 1,212 516 5,257
</TABLE>
128
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
103 $ 1,597 0 $ -- 0 $ --
1,107 48,708 1,037 45,628 2,205 97,020
500 43,313 500 43,313 1,000 86,625
1,308 56,571 1,168 50,516 2,625 113,531
668 18,370 536 14,740 1,224 33,660
801 9,562 589 7,031 1,206 14,397
2,318 41,289 2,236 39,829 4,715 83,986
4,400 45,375 4,200 43,313 10,000 99,375
5,000 49,688 4,700 46,706 8,900 91,781
2,730 178,644 2,497 163,397 6,422 420,240
2,200 29,288 2,100 27,956 4,500 59,906
732 17,431 612 14,573 1,177 28,027
845 35,120 765 31,795 1,740 72,319
6,320 336,935 5,602 298,657 14,766 787,212
2,453 171,710 2,219 155,330 5,798 405,860
1,200 33,075 1,200 33,075 2,500 68,906
380 3,753 320 3,160 680 6,715
2,452 40,611 2,342 38,789 5,000 82,813
134 888 94 623 0 --
800 13,400 600 10,050 1,600 26,800
274 4,761 0 -- 0 --
1,100 28,669 1,100 28,669 2,300 59,944
1,000 25,813 900 23,231 1,900 49,044
7,101 216,581 6,470 197,335 16,603 506,392
20,507 576,759 20,149 566,691 36,868 1,036,913
4,430 199,350 3,869 174,105 10,329 464,805
905 26,132 860 24,832 1,892 54,632
478 8,843 0 -- 0 --
700 5,950 500 4,250 900 7,650
480 7,320 369 5,627 621 9,470
1,555 45,192 1,505 43,739 3,155 91,692
12,681 710,929 11,587 649,596 22,244 1,247,053
229 5,668 0 -- 0 --
300 9,919 200 6,613 400 13,225
374 3,880 284 2,947 0 --
1,000 30,063 900 27,056 2,000 60,125
4,205 141,919 3,699 124,841 8,268 279,045
500 2,375 400 1,900 600 2,850
2,405 127,766 2,095 111,297 5,509 292,666
5,471 143,956 4,875 128,273 12,714 334,537
0 -- 600 12,338 1,000 20,563
7,405 160,596 7,051 152,919 15,118 327,872
642 9,028 398 5,597 774 10,884
1,012 10,310 679 6,917 1,039 10,585
</TABLE>
129
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Safeway Inc 1,298 $ 51,109 3,554 $ 139,939
Sara Lee Corp 633 28,643 3,553 160,773
Sbarro Inc 0 -- 0 --
Shoney's Inc 97 230 370 879
Sizzler International Inc 254 460 0 --
Smucker (J M) Co Class A 305 6,615 0 --
Southland Corp 1,800 4,134 1,400 3,216
Starbucks Corp 400 12,625 1,300 41,031
Suiza Foods Corp 100 4,838 400 19,350
Super Value Inc 156 3,169 986 20,028
Sysco Corp 410 8,277 2,574 51,963
Tootsie Roll Industries 436 14,715 437 14,743
Tricon Global Restaurants+ 226 8,376 1,275 47,255
Tyson Food Inc Class A 591 9,752 1,390 22,761
Unilever NV (Netherlands) 3,272 207,362 11,812 748,585
Universal Corp 181 5,702 500 15,750
Universal Foods Corp 558 11,788 640 13,520
UST Inc 292 7,629 1,528 39,919
Vlasic Foods International
Inc 80 1,160 362 5,249
Weis Markets Inc 200 6,963 200 6,963
Wendy's International Inc 211 4,233 1,070 21,467
Whole Foods Market Inc 100 4,138 400 16,550
Winn-Dixie Stores Inc 166 6,184 1,209 45,035
Wrigley (W M) Jr Co 184 14,260 879 68,123
------------ ------------
TOTAL FOOD & RELATED
- VALUE $ 1,015,711 $ 3,894,278
- COST $ 853,285 $ 3,144,255
FURNITURE & APPLIANCES
PERCENT OF NET ASSETS 0.05% 0.09%
Bassett Furniture Industries 25 $ 553 50 $ 1,106
Ethan Allen Interiors Inc 100 3,250 400 13,000
HON Industries Inc 306 6,579 640 13,760
Hussmann International Inc 32 420 438 5,749
Knoll Inc 0 -- 200 5,188
Leggett & Platt Inc 916 18,377 2,600 52,163
Maytag Corp 116 5,003 779 33,594
Miller (Herman) Inc 476 9,758 1,240 25,420
National Presto Industries
Inc 0 -- 0 --
Skyline Corp 20 565 44 1,243
Sunbeam Oster Co Inc 300 2,250 1,000 7,500
Whirlpool Corp 83 4,119 605 30,023
------------ ------------
TOTAL FURNITURE & APPLIANCES
- VALUE $ 50,874 $ 188,746
- COST $ 36,643 $ 183,322
</TABLE>
130
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
6,776 $ 266,805 6,378 $ 251,134 13,752 $ 541,485
8,137 368,199 7,173 324,578 17,602 796,490
319 6,320 219 4,339 0 --
751 1,784 596 1,415 1,304 3,097
434 787 319 578 0 --
436 9,456 331 7,179 0 --
2,600 5,972 1,800 4,134 4,200 9,647
2,400 75,750 2,300 72,594 4,900 154,656
800 38,700 700 33,863 1,500 72,563
2,188 44,444 2,088 42,413 3,836 77,919
6,170 124,557 5,498 110,991 13,474 272,006
654 22,073 437 14,737 1,104 37,260
2,675 99,142 2,387 88,468 4,867 180,383
2,511 41,118 2,473 40,495 5,145 84,249
26,120 1,655,354 25,664 1,626,455 46,992 2,978,117
1,039 32,729 894 28,161 1,965 61,897
818 17,280 978 20,660 1,540 32,533
3,453 90,210 3,035 79,289 7,426 194,004
832 12,064 727 10,542 1,802 26,129
300 10,444 200 6,963 500 17,406
2,334 46,826 2,263 45,401 4,251 85,286
700 28,963 700 28,963 1,500 62,063
2,758 102,736 2,605 97,036 4,866 181,259
2,064 159,960 1,864 144,460 4,689 363,398
------------ ------------ ------------
$ 8,582,777 $ 7,940,716 $ 17,053,766
$ 6,847,035 $ 6,417,182 $ 14,854,198
0.13% 0.16% 0.19%
200 $ 4,425 120 $ 2,655 206 $ 4,558
800 26,000 700 22,750 1,500 48,750
1,268 27,262 1,208 25,972 2,670 57,405
1,025 13,453 797 10,461 1,532 20,108
300 7,781 200 5,188 600 15,563
4,848 97,263 4,668 93,652 9,860 197,816
1,699 73,269 1,439 62,057 3,064 132,135
2,396 49,118 2,316 47,478 4,940 101,270
116 4,256 81 2,972 0 --
222 6,272 78 2,204 133 3,757
2,000 15,000 1,900 14,250 4,200 31,500
1,360 67,490 1,298 64,413 2,449 121,532
------------ ------------ ------------
$ 391,589 $ 354,052 $ 734,394
$ 366,752 $ 345,316 $ 805,974
</TABLE>
131
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
HEALTHCARE
PERCENT OF NET ASSETS 0.12% 0.17%
Apria Healthcare Group Inc 500 $ 2,094 600 $ 2,513
Beverly Enterprises Inc 575 4,528 1,346 10,600
Cardinal Health Inc 306 26,775 1,074 93,975
First Health Group Corp 568 11,467 880 17,765
Healthsouth Corp+ 610 11,552 3,390 64,198
Idexx Laboratories Inc 400 7,000 500 8,750
Lincare Holdings Inc 200 6,788 400 13,575
Mid Atlantic Medical
Services 400 2,225 500 2,781
Morrison Health Care Inc 128 2,256 66 1,163
Novacare Inc 0 -- 0 --
Oakley Inc 600 6,038 600 6,038
Oxford Health Plans Inc 500 3,063 900 5,513
PacifiCare Health Systems
Inc Class A 112 6,776 70 4,235
PacifiCare Health Systems
Inc Class B 174 10,962 295 18,585
St Jude Medical Inc+ 152 3,354 696 15,356
United Healthcare Corp 297 10,729 1,539 55,596
Universal Health Services
Inc 100 3,875 400 15,500
Vencor Inc 500 1,813 700 2,538
Ventas Inc 500 5,313 900 9,563
------------ ------------
TOTAL HEALTHCARE
- VALUE $ 126,608 $ 348,244
- COST $ 185,488 $ 453,191
HOSPITAL & MEDICAL SUPPLIES
PERCENT OF NET ASSETS 0.38% 0.89%
Allegiance Corp 562 $ 15,877 1,656 $ 46,782
American Oncology Resources 0 -- 200 1,700
Arrow International Inc 0 -- 100 2,713
Arterial Vascular
Engineering 0 -- 200 7,000
Bard (C R) Inc 143 4,683 455 14,901
Bausch & Lomb Inc 56 2,370 491 20,775
Baxter International Inc 470 25,028 2,097 111,665
Becton Dickinson & Co 318 10,593 1,774 59,096
Biomet Inc 132 3,548 926 24,886
Boston Scientific Corp+ 301 20,844 1,468 101,659
Columbia/HCA Healthcare Corp 940 21,209 5,159 116,400
Dentsply International Inc 400 8,538 600 12,806
Depuy Inc 0 -- 200 6,875
Guidant Corp 206 12,721 1,109 68,481
Health Care & Retirement
Corp 150 3,825 600 15,300
Health Management Associates
Inc
Class A 1,162 20,989 3,162 57,114
Hillenbrand Industries Inc 300 16,069 700 37,494
</TABLE>
132
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0.25% 0.30% 0.37%
800 $ 3,350 800 $ 3,350 1,300 $ 5,444
2,800 22,050 2,642 20,806 5,600 44,100
2,415 211,313 2,250 196,875 5,313 464,888
1,732 34,965 1,692 34,157 3,530 71,262
7,777 147,277 6,319 119,666 13,105 248,176
800 14,000 600 10,500 1,000 17,500
800 27,150 800 27,150 1,600 54,300
700 3,894 500 2,781 1,300 7,231
214 3,772 132 2,327 258 4,547
975 7,130 710 5,192 0 --
1,200 12,075 800 8,050 1,200 12,075
1,800 11,025 1,300 7,963 3,700 22,663
459 27,770 135 8,168 242 14,641
626 39,438 511 32,193 1,195 75,285
1,635 36,072 1,534 33,844 2,835 62,547
3,529 127,485 3,247 117,298 6,162 222,602
800 31,000 700 27,125 1,600 62,000
1,500 5,438 1,180 4,278 2,474 8,968
1,700 18,063 1,580 16,788 3,374 35,849
------------ ------------ ------------
$ 783,267 $ 678,511 $ 1,434,078
$ 908,349 $ 798,376 $ 1,734,718
1.34% 1.65% 2.22%
3,260 $ 92,095 2,996 $ 84,637 6,614 $ 186,845
0 -- 200 1,700 400 3,400
0 -- 0 -- 200 5,425
300 10,500 200 7,000 600 21,000
1,108 36,287 997 32,652 1,896 62,094
1,050 44,428 975 41,255 1,755 74,258
4,915 261,724 4,326 230,359 11,368 605,346
4,342 144,643 3,860 128,586 7,940 264,501
1,946 52,299 1,742 46,816 4,260 114,488
3,406 235,865 3,067 212,390 7,829 542,158
11,836 267,050 10,867 245,187 21,254 479,543
1,200 25,613 1,100 23,478 2,300 49,091
400 13,750 300 10,313 900 30,938
2,717 167,775 2,367 146,162 6,073 375,008
1,150 29,325 1,000 25,500 2,250 57,375
5,912 106,776 5,650 102,053 12,080 218,186
1,300 69,631 1,300 69,631 2,700 144,619
</TABLE>
133
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Johnson & Johnson 1,933 $ 133,376 9,995 $ 689,654
Mallinckrodt Group Inc 87 1,990 584 13,359
Manor Care Inc 61 1,464 501 12,024
Medpartners Inc 710 1,775 1,889 4,723
Medtronic Inc 720 36,990 3,514 180,532
Phycor Inc 300 2,081 800 5,550
Quorum Health Group Inc 150 2,850 550 10,450
Safeskin Corp 200 6,750 600 20,250
Sofamor Danek Group Inc 100 8,344 300 25,031
STERIS Corp 400 9,550 900 21,488
Stryker Corp 348 11,180 1,120 35,980
Sybron International Corp 600 10,913 1,500 27,281
Tenet Healthcare Corp+ 424 10,945 2,482 64,067
Thermo Cardiosystems Inc 150 2,250 250 3,750
United States Surgical 152 6,071 599 23,923
------------ ------------
TOTAL HOSPITAL & MEDICAL
SUPPLIES
- VALUE $ 412,823 $ 1,843,709
- COST $ 379,009 $ 1,533,214
HOUSEHOLD PRODUCTS
PERCENT OF NET ASSETS 0.29% 0.75%
Alberto-Culver Co Class B 102 $ 2,040 485 $ 9,700
Avon Products Inc 160 10,060 987 62,058
Colgate-Palmolive Co 479 34,548 2,258 162,858
Dial Corp 536 10,452 1,480 28,860
Estee Lauder Co Class A 200 11,775 400 23,550
Gillette Co 1,642 67,526 8,342 343,064
International Specialty
Produc 0 -- 200 3,063
Kimberly-Clark Corp 786 29,966 4,154 158,371
NCH Corp 0 -- 0 --
Procter & Gamble Co 1,903 145,579 9,984 763,775
------------ ------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 311,946 $ 1,555,299
- COST $ 278,569 $ 1,117,720
INSURANCE
PERCENT OF NET ASSETS 0.90% 2.18%
Aegon NV ADR (Netherlands) 22 $ 1,881 329 $ 28,130
Aetna Inc 174 10,473 1,200 72,225
AFLAC Corp 1,392 34,974 3,940 98,993
Alleghany Corp 2 416 102 21,216
Allmerica Financial Corp 124 7,394 330 19,676
Allstate Corp 1,144 42,900 6,802 255,075
American Bankers Insurance
Gro 0 -- 400 20,750
</TABLE>
134
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
23,411 $ 1,615,358 20,549 $ 1,417,880 50,805 $ 3,505,544
1,443 33,009 1,305 29,852 2,292 52,430
1,199 28,776 1,112 26,688 2,037 48,888
3,720 9,300 2,752 6,880 7,862 19,655
8,214 421,994 7,198 369,797 17,713 910,005
1,550 10,753 1,150 7,978 2,450 16,997
1,000 19,000 950 18,050 2,100 39,900
1,100 37,125 1,100 37,125 2,300 77,625
600 50,063 600 50,063 1,300 108,469
1,700 40,588 1,600 38,200 3,600 85,950
2,068 66,435 1,988 63,865 4,200 134,925
2,800 50,925 2,700 49,106 5,700 103,669
5,683 146,692 5,354 138,200 9,920 256,060
300 4,500 300 4,500 450 6,750
1,465 58,508 1,276 50,960 2,442 97,527
------------ ------------ ------------
$ 4,150,787 $ 3,716,863 $ 8,698,669
$ 3,308,005 $ 3,005,129 $ 7,541,351
1.16% 1.41% 1.99%
1,110 $ 22,200 982 $ 19,640 1,769 $ 35,380
2,243 141,029 2,020 127,008 5,222 328,333
5,119 369,208 4,546 327,880 11,223 809,459
2,841 55,400 2,628 51,246 5,708 111,306
700 41,213 600 35,325 1,400 82,425
19,548 803,911 17,208 707,679 42,422 1,744,604
300 4,594 300 4,594 700 10,719
9,713 370,308 8,477 323,186 21,041 802,188
124 7,053 89 5,062 0 --
23,358 1,786,886 20,527 1,570,315 50,716 3,879,773
------------ ------------ ------------
$ 3,601,802 $ 3,171,935 $ 7,804,187
$ 2,649,415 $ 2,407,816 $ 6,422,454
3.28% 4.15% 4.82%
1,504 $ 128,592 588 $ 50,274 910 $ 77,805
2,668 160,580 2,416 145,413 4,854 292,150
7,434 186,779 7,074 177,734 15,054 378,232
104 21,632 104 21,632 304 63,232
579 34,523 572 34,106 1,203 71,729
15,446 579,225 14,066 527,475 27,214 1,020,525
700 36,313 600 31,125 1,500 77,813
</TABLE>
135
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
American Financial Group Inc 304 $ 10,108 490 $ 16,293
American General Corp 306 19,661 2,028 130,299
American International Group
Inc 1,490 115,156 7,872 608,603
American National Insurance
Co 100 9,025 100 9,025
Aon Corp 267 16,704 1,310 81,957
Argonaut Group Inc 0 -- 100 2,575
Axa-UAP ADR (France) 1,875 101,835 6,608 358,896
Chubb Corp 215 13,438 1,324 82,750
CIGNA Corp 237 13,790 1,753 102,003
Cincinnati Financial Corp 190 6,389 1,338 44,990
CMAC Investment Corp 100 3,850 300 11,550
CNA Financial Corp 200 7,325 400 14,650
Conseco Inc 392 10,829 2,502 69,118
Equitable Co Inc 400 22,875 1,100 62,906
Everest Reinsurance Holdings
Inc 300 10,500 600 21,000
Foundation Health Systems 491 5,493 1,326 14,835
Fremont General Corporation 100 4,275 400 17,100
General Re Corp 101 20,958 651 135,083
Hartford Financial Services
Group 272 12,172 1,862 83,325
Highlands Insurance Group 37 463 76 950
Horace Mann Educators Corp 200 5,575 700 19,513
HSB Group Inc 345 14,964 420 18,218
Humana Inc+ 257 3,341 1,270 16,510
Jefferson-Pilot Corp 160 9,080 858 48,692
John Alden Financial Corp 0 -- 0 --
Leucadia National Corp 200 5,538 600 16,613
Lincoln National Corp 144 12,384 836 71,896
Loews Corp 155 13,078 883 74,503
Marsh & McLennan Companies
Inc 300 14,550 2,077 100,713
MBIA Inc 104 5,837 764 42,880
Mercury General Corp 200 7,313 400 14,625
Ohio Casualty Corp 100 3,750 400 15,000
Old Republic International
Corp 525 11,714 1,725 38,489
PMI Group Inc 100 5,538 300 16,613
Progressive Corp Ohio 85 8,282 550 53,591
Protective Life Corp 200 6,175 800 24,700
Provident Co Inc 294 10,584 932 33,552
Providian Financial Corp 155 9,949 688 44,161
Reliance Group Holdings 300 3,788 900 11,363
Reliastar Financial Corp 400 15,700 1,300 51,025
SAFECO Corp 176 7,150 1,108 45,013
St Paul Co 354 10,819 1,875 57,305
Sunamerica Inc 309 19,139 1,533 94,950
TIG Holdings Inc 200 2,763 600 8,288
</TABLE>
136
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,013 $ 33,682 908 $ 30,191 1,980 $ 65,835
4,662 299,534 4,301 276,339 8,348 536,359
18,275 1,412,847 16,074 1,242,682 39,695 3,068,881
300 27,075 300 27,075 600 54,150
3,119 195,132 2,854 178,553 5,434 339,965
0 -- 200 5,150 300 7,725
14,697 798,231 14,404 782,316 26,332 1,430,156
3,068 191,750 2,835 177,188 5,567 347,938
3,996 232,517 3,616 210,406 6,980 406,149
3,135 105,414 2,920 98,185 5,285 177,708
600 23,100 600 23,100 1,200 46,200
800 29,300 800 29,300 1,600 58,600
5,661 156,385 5,195 143,512 10,140 280,118
2,100 120,094 2,000 114,375 4,400 251,625
1,200 42,000 1,100 38,500 2,400 84,000
2,654 29,692 2,513 28,114 5,441 60,871
700 29,925 600 25,650 1,400 59,850
1,413 293,198 1,329 275,768 2,474 513,355
4,330 193,767 3,986 178,373 7,700 344,575
172 2,150 136 1,700 216 2,700
1,200 33,450 1,200 33,450 2,500 69,688
863 37,433 836 36,262 1,730 75,039
2,972 38,636 2,822 36,686 5,215 67,795
1,925 109,244 1,902 107,939 3,469 196,866
0 -- 0 -- 300 6,731
1,100 30,456 1,100 30,456 2,300 63,681
1,879 161,594 1,670 143,620 3,351 288,186
2,082 175,669 2,012 169,763 3,813 321,722
4,765 231,102 4,183 202,876 8,375 406,187
1,767 99,173 1,710 95,974 3,205 179,881
700 25,594 700 25,594 1,500 54,844
800 30,000 700 26,250 1,600 60,000
3,250 72,516 3,075 68,611 6,550 146,147
600 33,225 600 33,225 1,300 71,988
1,369 133,392 1,248 121,602 2,361 230,050
1,500 46,313 1,400 43,225 3,100 95,713
1,812 65,232 1,702 61,272 3,666 131,976
1,702 109,247 1,496 96,025 3,097 198,789
1,700 21,463 1,600 20,200 3,400 42,925
2,500 98,125 2,400 94,200 5,100 200,175
2,607 105,909 2,498 101,481 4,523 183,747
4,298 131,358 4,060 124,084 7,618 232,825
3,597 222,789 3,390 209,968 6,399 396,338
1,200 16,575 1,200 16,575 2,500 34,531
</TABLE>
137
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO 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) 3,718 $ 148,719 15,400 $ 615,999
Torchmark Corp 162 5,792 1,097 39,218
Transamerica Corp 76 7,795 542 55,589
Transatlantic Holdings Inc 126 10,230 250 20,297
Travelers Inc 1,573 69,801 9,265 411,134
Travelers Property Casualty 100 3,294 100 3,294
UICI 200 3,025 500 7,594
Unitrin Inc 100 5,638 400 22,550
UNUM Corp 172 7,568 1,156 50,864
Wellpoint Health Networks 100 5,338 200 10,675
------------ ------------
TOTAL INSURANCE
- VALUE $ 977,095 $ 4,539,400
- COST $ 887,562 $ 3,886,187
LODGING
PERCENT OF NET ASSETS 0.04% 0.09%
Choice Hotels International
Inc 59 $ 708 505 $ 6,060
Extended Stay America Inc 0 -- 900 7,875
Hilton Hotels Corp 304 6,308 1,911 39,653
Homestead Village Property
Inc 75 614 87 712
Host Marriott Corp 800 11,200 2,500 35,000
Marriott International 356 9,990 2,012 56,462
Primadonna Resorts Inc 0 -- 0 --
Promus Hotel Corp 441 13,561 1,218 37,454
Sodexho Marriott Services
Inc 44 1,095 251 6,244
Sunburst Hospitality Corp 19 83 168 735
------------ ------------
TOTAL LODGING
- VALUE $ 43,559 $ 190,195
- COST $ 41,581 $ 196,239
MACHINERY
PERCENT OF NET ASSETS 0.22% 0.41%
AGCO Corp 300 $ 2,588 800 $ 6,900
AVX Corp 300 4,463 300 4,463
Black & Decker Corp 126 5,245 761 31,677
Camco International Inc 200 10,050 500 25,125
Case Corp 103 2,781 604 16,308
Caterpillar Inc 530 22,359 2,959 124,833
Cincinnati Milacron Inc 61 1,182 362 7,014
Cummins Engine Co Inc 25 1,017 298 12,125
Deere & Co 339 11,166 1,949 64,195
Federal Mogul Corp 396 21,137 800 42,700
Flowserve Corp 200 3,750 600 11,250
Harsco Corp 338 12,400 720 26,415
</TABLE>
138
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
34,176 $ 1,367,039 32,669 $ 1,306,759 62,608 $ 2,504,319
2,606 93,165 2,418 86,444 4,644 166,023
1,199 122,972 1,044 107,075 2,087 214,048
532 43,192 490 39,782 960 77,940
21,213 941,326 19,304 856,620 37,241 1,652,569
300 9,881 200 6,588 400 13,175
1,000 15,188 900 13,669 2,000 30,375
800 45,100 700 39,463 1,600 90,200
2,574 113,256 2,391 105,204 4,559 200,596
400 21,350 400 21,350 800 42,700
------------ ------------ ------------
$ 10,164,401 $ 9,356,528 $ 18,866,015
$ 8,281,273 $ 7,777,238 $ 17,320,893
0.13% 0.16% 0.22%
1,105 $ 13,260 807 $ 9,684 1,217 $ 14,604
1,700 14,875 1,700 14,875 3,600 31,500
4,372 90,719 4,093 84,930 9,873 204,865
100 819 113 925 188 1,539
4,700 65,800 4,500 63,000 9,600 134,400
4,410 123,756 3,856 108,209 10,302 289,100
0 -- 0 -- 400 3,050
2,385 73,339 2,289 70,387 4,845 148,984
588 14,627 494 12,288 1,237 30,770
368 1,610 269 1,177 405 1,772
- ----------- ------------ ----------- ------------ ----------- ------------
$ 398,805 $ 365,475 $ 860,584
$ 380,005 $ 375,098 $ 937,414
0.62% 0.79% 0.89%
1,600 $ 13,800 1,600 $ 13,800 3,300 $ 28,463
600 8,925 400 5,950 900 13,388
1,757 73,135 1,659 69,056 3,034 126,290
900 45,225 900 45,225 1,900 95,475
1,393 37,611 1,311 35,397 2,408 65,016
6,710 283,078 6,208 261,900 12,259 517,177
802 15,539 767 14,861 1,215 23,541
746 30,353 624 25,389 1,256 51,104
4,540 149,536 4,182 137,745 8,205 270,252
1,453 77,554 1,398 74,618 2,980 159,058
1,100 20,625 1,100 20,625 2,300 43,125
1,348 49,455 1,258 46,153 2,620 96,121
</TABLE>
139
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ingersoll-Rand Co 272 $ 10,812 1,350 $ 53,663
Jacobs Engineering Group+ 0 -- 0 --
Kubota Corp ADR (Japan) 1,434 52,341 5,703 208,160
MagneTek Inc+ 0 -- 0 --
Makita Corp ADR (Japan) 1,420 15,975 4,803 54,034
McDermott International Inc 146 2,929 456 9,149
Nordson Corp 214 9,122 160 6,820
Pall Corp 183 3,752 987 20,234
Parker Hannifin Corp 158 4,582 887 25,723
Pentair Co 200 5,575 500 13,938
Presstek Inc 200 1,638 400 3,275
SPX Corp 22 1,095 46 2,289
Tecumseh Products Co Class A 241 11,463 190 9,037
Teleflex Inc 350 11,025 500 15,750
Thermo Electron Corp+ 239 3,884 1,236 20,085
UCAR International Inc 200 3,625 500 9,063
York International Corp 202 6,994 620 21,468
------------ ------------
TOTAL MACHINERY
- VALUE $ 242,950 $ 845,693
- COST $ 328,844 $ 1,129,114
MANUFACTURING
PERCENT OF NET ASSETS 0.05% 0.12%
Carlisle Corp 100 $ 3,788 400 $ 15,150
Tyco International Ltd 924 51,282 4,220 234,210
West Teleservices 0 -- 0 --
------------ ------------
TOTAL MANUFACTURING
- VALUE $ 55,070 $ 249,360
- COST $ 33,012 $ 179,246
METAL FABRICATORS
PERCENT OF NET ASSETS 0.16% 0.37%
Alcan Aluminum Ltd 327 $ 6,213 1,795 $ 34,105
Allegheny Teledyne Inc 263 3,961 1,538 23,166
Aluminum Co of America 274 16,406 1,570 94,004
Armco Inc+ 111 458 953 3,931
Barrick Gold Corp 623 8,099 2,938 38,194
Battle Mountain Gold Co 337 1,032 1,957 5,993
Bethlehem Steel Corp+ 67 482 938 6,742
British Steel PLC ADR (UK) 578 10,404 1,872 33,696
Crane Co 80 3,220 395 15,899
Engelhard Corp 270 4,961 1,171 21,517
Freeport McMoRan Inc 231 2,685 1,382 16,066
Getchell Gold Corp 24 216 259 2,331
Howmet International Inc 0 -- 200 2,000
</TABLE>
140
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,007 $ 119,528 2,862 $ 113,765 5,417 $ 215,326
373 9,512 0 -- 0 --
13,686 499,539 13,035 475,778 25,060 914,690
367 4,771 0 -- 0 --
12,909 145,226 12,447 140,029 23,783 267,559
1,093 21,928 1,047 21,005 1,893 37,978
293 12,489 208 8,866 385 16,411
2,250 46,125 2,123 43,522 3,943 80,832
2,008 58,232 1,938 56,202 3,509 101,761
876 24,419 906 25,255 1,800 50,175
400 3,275 400 3,275 600 4,913
226 11,244 83 4,129 248 12,338
345 16,409 249 11,843 431 20,499
908 28,602 788 24,822 1,800 56,700
2,866 46,573 2,746 44,623 5,171 84,029
1,000 18,125 900 16,313 2,000 36,250
1,159 40,130 1,114 38,572 2,385 $ 82,581
- ----------- ------------ ----------- ------------ ----------- ------------
$ 1,910,963 $ 1,778,718 $ 3,471,052
$ 2,604,243 $ 2,473,585 $ 5,016,927
0.19% 0.23% 0.33%
700 $ 26,513 700 $ 26,513 1,500 $ 56,813
10,149 563,270 8,942 496,281 22,024 1,222,332
0 -- 0 -- 200 2,100
- ----------- ------------ ----------- ------------ ----------- ------------
$ 589,783 $ 522,794 $ 1,281,245
$ 427,722 $ 392,758 $ 968,054
0.58% 0.76% 0.82%
4,135 $ 78,565 3,904 $ 74,176 7,507 $ 142,633
3,498 52,689 3,398 51,182 6,198 93,357
3,561 213,215 3,078 184,295 6,347 380,027
1,943 8,015 1,647 6,794 3,846 15,865
6,757 87,841 6,482 84,266 12,274 159,562
4,566 13,983 4,060 12,434 7,516 23,018
2,551 18,335 2,252 16,186 4,089 29,390
4,262 76,716 4,165 74,970 7,566 136,188
815 32,804 861 34,655 1,498 60,295
2,601 47,793 2,522 46,342 4,626 85,003
3,143 36,537 3,247 37,746 7,341 85,339
222 1,998 458 4,122 646 5,814
400 4,000 300 3,000 600 6,000
</TABLE>
141
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Inland Steel Industries Inc 151 $ 2,860 316 $ 5,984
Kaydon Corp 0 -- 0 --
Laboratory Corp of America
Holdings 660 743 418 470
Mitsui & Co Ltd ADR (Japan) 660 71,197 2,415 260,518
Nucor Corp 131 4,708 734 26,378
Oregon Steel Mills Inc 0 -- 0 --
Phelps Dodge Corp 76 3,401 440 19,690
Placer Dome Inc 353 2,846 1,924 15,512
Precision Castparts Corp 100 3,769 300 11,306
Reynolds Metals Co 59 2,828 606 29,050
SKF AB ADR (Sweden) 681 10,215 2,331 34,965
Steel Dynamics Inc 0 -- 300 3,338
Timken Co 102 1,855 500 9,094
USX--U.S. Steel Group 136 2,848 690 14,447
WMC Ltd ADR (Japan) 940 9,165 3,437 33,511
Worthington Industries Inc 137 1,781 797 10,361
------------ ------------
TOTAL METAL FABRICATORS
- VALUE $ 176,353 $ 772,268
- COST $ 272,820 $ 1,210,649
OFFICE EQUIPMENT & SUPPLIES
PERCENT OF NET ASSETS 0.04% 0.07%
Ingram Micro Inc Class A 0 $ -- 200 $ 9,000
Ricoh Co Ltd ADR (Japan) 677 32,414 2,679 128,267
Standard Register Co 301 9,444 0 --
------------ ------------
TOTAL OFFICE EQUIPMENT &
SUPPLIES
- VALUE $ 41,858 $ 137,267
- COST $ 53,924 $ 198,090
PHARMACEUTICALS
PERCENT OF NET ASSETS 1.62% 3.75%
Abbott Laboratories 2,188 $ 84,237 11,524 $ 443,673
Allergan Inc 65 3,071 504 23,814
ALZA Corp 122 4,392 699 25,164
American Home Products Corp 1,930 96,740 9,818 492,126
Amgen Inc+ 377 22,950 1,889 114,993
Astra AB ADR Series B
(Sweden) 3,938 63,499 14,004 225,815
Bergen Brunswig Corp Class A 225 7,678 745 25,423
Bristol-Myers Squibb Co 1,384 135,458 7,394 723,687
Centocor Inc 346 11,245 940 30,550
Covance Inc 90 2,003 581 12,927
Dura Pharmaceuticals Inc 0 -- 500 8,250
Forest Labs Inc Class A 364 11,921 1,140 37,335
Glaxo Holdings PLC ADR (UK) 3,100 172,243 10,992 610,742
</TABLE>
142
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
998 $ 18,900 926 $ 17,536 1,794 $ 33,974
500 13,531 0 -- 0 --
1,043 1,173 684 770 1,337 1,504
5,822 628,048 5,584 602,374 10,595 1,142,936
1,581 56,817 1,560 56,063 2,837 101,955
299 2,822 199 1,878 0 --
1,095 49,001 1,038 46,451 1,912 85,562
4,869 39,256 4,318 34,814 7,878 63,516
600 22,613 513 19,334 1,200 45,225
1,304 62,511 1,306 62,606 2,354 112,845
5,117 76,755 5,246 78,690 9,048 135,720
600 6,675 400 4,450 1,000 11,125
1,240 22,553 1,078 19,606 1,984 36,084
1,564 32,746 1,494 31,281 2,692 56,364
7,559 73,700 7,868 76,713 14,098 137,456
1,935 25,155 1,689 21,957 3,092 40,196
- ----------- ------------ ----------- ------------ ----------- ------------
$ 1,804,747 $ 1,704,691 $ 3,226,953
$ 2,777,500 $ 2,591,938 $ 5,075,043
0.11% 0.14% 0.15%
300 $ 13,500 300 $ 13,500 700 $ 31,500
6,249 299,194 6,025 288,469 11,533 552,185
432 13,554 312 9,789 0 --
- ----------- ------------ ----------- ------------ ----------- ------------
$ 326,248 $ 311,758 $ 583,685
$ 453,049 $ 435,062 $ 815,644
5.73% 7.16% 9.35%
26,866 $ 1,034,340 23,644 $ 910,293 58,292 $ 2,244,241
1,189 56,180 1,098 51,880 2,108 99,603
1,513 54,468 1,336 48,096 2,786 100,296
22,818 1,143,751 20,080 1,006,509 49,586 2,485,497
4,515 274,851 3,871 235,647 9,648 587,322
31,150 502,294 30,660 494,393 56,134 905,161
1,386 47,297 875 29,859 2,050 69,956
17,357 1,698,815 15,230 1,490,635 37,571 3,677,261
1,881 61,133 1,766 57,395 3,820 124,150
1,029 22,895 877 19,513 1,546 34,399
1,000 16,500 800 13,200 1,700 28,050
2,132 69,823 1,972 64,583 4,320 141,480
24,501 1,361,336 24,113 1,339,778 44,134 2,452,194
</TABLE>
143
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ICN Pharmaceuticals Inc 300 $ 4,613 1,006 $ 15,467
Immunex Corp 100 5,038 300 15,188
Interneuron Pharmaceuticals
Co 0 -- 400 1,050
IVAX Corp 1,230 9,533 1,240 9,610
Lilly (Eli) & Co 1,599 104,734 8,271 541,750
Marshall & Ilsley Corp 558 24,552 1,540 67,760
McKesson Corp 400 30,000 1,100 82,500
Merck & Co Inc 1,673 193,962 8,936 1,036,016
Millipore Corp 52 1,128 376 8,155
Mylan Laboratories 603 13,794 1,770 40,489
Novo Nordisk A/S ADR
(Denmark) 2,132 142,710 7,761 519,501
Omnicare Inc 400 12,475 1,200 37,425
Perrigo Co 812 6,902 550 4,675
Pfizer Inc 1,895 176,234 9,709 902,936
Pharmacia and Upjohn Inc 737 30,632 4,070 169,159
PharMerica Inc 35 137 338 1,320
Rexall Sundown Inc 200 3,638 500 9,125
Schering-Plough Corp 1,083 93,137 5,429 466,893
Schweitzer-Mauduit
International Inc 20 496 92 2,283
SmithKline Beecham PLC ADR
(UK) 1,955 111,190 6,895 392,152
SouthTrust Corp 706 22,857 2,170 70,254
ThermoLase Corp 0 -- 100 613
Warner Lambert Co 1,137 74,188 6,091 397,437
Watson Pharmaceutical Inc 400 18,025 1,100 49,569
Xoma Corp 188 388 0 --
Zeneca Group PLC ADR (UK) 1,474 53,801 5,331 194,582
------------ ------------
TOTAL PHARMACEUTICALS
- VALUE $ 1,749,601 $ 7,810,408
- COST $ 1,174,890 $ 4,668,275
PUBLISHING
PERCENT OF NET ASSETS 0.33% 0.61%
American Greetings Corp
Class A 133 $ 5,019 605 $ 22,158
Belo (A H) Corp 512 9,472 980 18,130
Central Newspapers Class A 100 6,200 300 18,600
Chris-Craft Industries Inc 119 4,953 268 11,156
Comcast Corp Class A 455 17,006 2,744 102,557
Donnelley (R R) & Sons Co 159 5,764 1,100 39,875
Dow Jones & Co Inc 104 5,181 788 39,252
E.W. Scripps Co 100 4,719 300 14,156
Elsevier NV ADR
(Netherlands) 3,287 82,174 11,861 296,525
Ennis Business Forms Inc 0 -- 0 --
Gannett Co Inc 478 28,202 2,145 126,555
Gibson Greetings Inc+ 0 -- 0 --
Golden Books Family
Entertainment Inc 234 322 0 --
</TABLE>
144
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,962 $ 30,166 1,860 $ 28,598 4,060 $ 62,423
500 25,313 500 25,313 1,000 50,625
0 -- 600 1,575 900 2,363
2,323 18,003 1,963 15,213 3,995 30,961
19,223 1,259,105 16,922 1,108,390 41,815 2,738,881
2,903 127,732 2,783 122,452 6,020 264,880
2,000 150,000 1,900 142,500 4,100 307,500
20,815 2,413,238 18,250 2,115,858 45,196 5,239,910
788 17,090 686 14,878 1,628 35,307
3,265 74,687 3,127 71,530 6,652 152,165
17,106 1,145,032 16,879 1,129,837 30,797 2,061,473
2,300 71,731 2,200 68,613 4,700 146,581
1,252 10,642 842 7,157 1,680 14,280
22,765 2,117,144 19,953 1,855,628 49,305 4,585,364
9,384 390,023 8,554 355,526 16,658 692,348
955 3,731 792 3,094 1,547 6,043
1,000 18,250 1,000 18,250 2,100 38,325
12,788 1,099,767 11,269 969,133 27,728 2,384,607
214 5,310 176 4,367 351 8,709
15,291 869,676 15,063 856,707 27,489 1,563,436
4,105 132,899 3,980 128,853 8,402 272,015
0 -- 0 -- 300 1,838
14,260 930,465 12,525 817,255 30,983 2,021,640
2,100 94,631 2,000 90,125 4,300 193,769
193 398 193 398 0 --
11,817 431,321 11,618 424,057 21,283 776,830
------------ ------------ ------------
$ 17,780,037 $ 16,137,088 $ 36,601,883
$ 10,467,422 $ 9,851,567 $ 23,938,098
0.90% 1.14% 1.36%
1,336 $ 48,931 1,292 $ 47,320 2,380 $ 87,168
1,928 35,668 1,888 34,928 3,980 73,630
500 31,000 500 31,000 1,100 68,200
506 21,062 344 14,319 232 9,657
6,525 243,872 5,637 210,683 14,100 526,988
2,628 95,265 2,433 88,196 4,705 170,556
1,730 86,176 1,604 79,899 3,115 155,166
700 33,031 600 28,313 1,300 61,344
26,326 658,150 25,863 646,575 47,359 1,183,975
247 2,485 0 -- 0 --
5,051 298,009 4,436 261,724 11,514 679,326
244 4,743 0 -- 0 --
313 430 233 320 0 --
</TABLE>
145
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Harland (John H) Co 55 $ 718 248 $ 3,239
Harte-Hanks Communications
Inc 200 4,388 600 13,163
Houghton Mifflin Co 304 9,177 240 7,245
Interpublic Group Co Inc 128 7,296 1,029 58,653
Knight-Ridder Inc 144 6,858 597 28,432
Lee Enterprises Inc 498 11,765 0 --
Liberty Media Group Class A 1,579 51,614 4,307 140,785
Marvel Entertainment Group
Inc 0 -- 200 30
McGraw-Hill Inc 176 13,420 840 64,050
Media General Inc Class A 280 11,900 220 9,350
Meredith Corp 102 3,423 434 14,566
Moore Corp Ltd 104 995 783 7,487
New York Times Co Class A 232 6,728 1,498 43,442
News Corporation Ltd 854 20,549 2,880 69,300
Primedia Inc 0 -- 200 2,000
Readers Digest Association
Class A 300 5,888 1,100 21,588
Readers Digest Association
Class B 200 4,050 300 6,075
Scholastic Inc 200 7,750 200 7,750
Times Mirror Co Class A 152 8,693 659 37,687
Washington Post Co Class B 27 13,838 100 51,250
Workflow Management Inc 0 -- 122 648
Ziff Davis Inc 0 -- 300 2,400
------------ ------------
TOTAL PUBLISHING
- VALUE $ 358,062 $ 1,278,104
- COST $ 338,422 $ 1,147,703
REAL ESTATE
PERCENT OF NET ASSETS 0.21% 0.30%
AMB Property Corp REIT 0 $ -- 200 $ 4,700
Archstone Communities Trust
REIT 600 11,625 1,600 31,000
Arden Realty Group Inc REIT 300 6,338 800 16,900
Boston Properties Inc REIT 200 5,713 600 17,138
CarrAmercia Realty Corp REIT 300 6,750 800 18,000
Castle & Cooke Inc 215 3,225 136 2,040
Catellus Development Corp 400 5,025 1,000 12,563
Chicago Title Corp 6 211 206 7,249
Cornerstone Properties Inc
REIT 500 7,188 1,400 20,125
Echelon International Corp 68 1,560 53 1,216
Equity Office Properties
Trust REIT 1,000 22,688 2,962 67,200
Equity Residential
Properties Trust REIT 400 15,975 1,300 51,919
Federal Realty Investment
Trus 0 -- 0 --
Fel Cor Lodging Trust Inc
REIT 200 4,075 800 16,300
Franchise Finance Corp REIT 0 -- 100 2,338
Health Care Property
Investors Inc REIT 300 9,394 300 9,394
HRPT Properties Trust REIT 600 9,375 1,900 29,688
</TABLE>
146
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
620 $ 8,099 616 $ 8,047 1,015 $ 13,258
1,100 24,131 1,000 21,938 2,200 48,263
460 13,886 310 9,358 890 26,867
2,325 132,525 2,058 117,306 4,960 282,720
1,424 67,818 1,381 65,770 2,603 123,968
708 16,727 510 12,049 0 --
8,180 267,384 7,788 254,570 16,738 547,123
1,400 210 200 30 600 90
1,865 142,206 1,737 132,446 3,190 243,238
410 17,425 290 12,325 570 24,225
926 31,079 908 30,475 1,646 55,244
1,808 17,289 1,536 14,688 2,924 27,961
3,452 100,108 3,254 94,366 6,266 181,714
6,384 153,615 6,249 150,367 11,313 272,219
400 4,000 300 3,000 600 6,000
2,000 39,250 1,900 37,288 4,100 80,462
300 6,075 300 6,075 600 12,150
200 7,750 200 7,750 400 15,500
1,574 90,013 1,439 82,293 2,921 167,045
180 92,250 133 68,163 325 166,563
255 1,355 215 1,142 486 2,582
700 5,600 500 4,000 1,100 8,800
$ 2,797,617 $ 2,576,723 $ 5,322,002
$ 2,477,341 $ 2,290,143 $ 4,758,681
------------ ------------ ------------
0.39% 0.52% 0.60%
300 $ 7,050 200 $ 4,700 600 $ 14,100
3,100 60,063 2,900 56,188 6,200 120,125
1,500 31,688 1,400 29,575 3,100 65,488
1,100 31,419 1,100 31,419 2,300 65,694
1,500 33,750 1,400 31,500 3,100 69,750
336 5,040 222 3,330 341 5,115
2,000 25,125 1,900 23,869 4,100 51,506
412 14,497 812 28,572 1,012 35,610
2,700 38,813 2,500 35,938 5,400 77,625
96 2,202 70 1,606 65 1,491
5,665 128,525 5,384 122,150 11,568 262,449
2,400 95,850 2,300 91,856 4,800 191,700
0 -- 0 -- 400 8,050
1,600 32,600 800 16,300 1,700 34,638
0 -- 0 -- 200 4,675
400 12,525 500 15,656 700 21,919
3,700 57,813 3,500 54,688 7,400 115,625
</TABLE>
147
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Kimco Realty Corp REIT 300 $ 10,650 650 $ 23,075
Mack-Cali Realty Corp REIT 300 8,644 800 23,050
MAXXAM Inc+ 0 -- 0 --
Meditrust Corp REIT 702 10,887 1,280 19,846
New Plan Realty Trust REIT 400 8,100 800 16,200
Patriot American Hospitality
Inc REIT 500 6,750 1,700 22,950
Public Storage Inc REIT 400 9,350 1,100 25,713
Simon Debartolo Group Inc
REIT 300 8,719 1,100 31,969
Starwood Lodging Trust REIT 964 35,186 2,666 97,309
United Dominion Realty Trust
Inc Reit 500 5,813 1,500 17,438
Vornado Realty Trust REIT 300 9,413 900 28,238
Weingarten Realty Investors
REIT 200 7,700 200 7,700
Westfield America Inc REIT 0 -- 200 3,175
------------ ------------
TOTAL REAL ESTATE
- VALUE $ 230,354 $ 624,433
- COST $ 262,251 $ 721,010
RETAIL & RELATED
PERCENT OF NET ASSETS 1.00% 2.24%
Abercrombie & Fitch Co 6 $ 258 30 $ 1,290
Amazon.com Inc 100 8,350 200 16,750
Ann Taylor Stores Inc 247 6,005 195 4,741
AutoZone Inc+ 256 6,640 1,211 31,410
Barnes & Noble 400 10,825 700 18,944
Bed Bath & Beyond Inc 400 7,225 1,400 25,288
Benetton SpA ADR (Italy) 1,917 55,593 6,962 201,898
Best Buy Co Inc 400 15,750 1,100 43,313
BJ's Wholesale Club Inc 365 12,319 0 --
Borders Group Inc 300 5,681 1,000 18,938
CDW Computer Centers Inc 0 -- 100 3,850
Charming Shoppes Inc 59 258 0 --
Circuit City Stores Inc 147 4,539 784 24,206
Coles Myer Ltd ADR
(Australia) 924 26,219 3,432 97,383
CompUSA Inc 400 4,750 1,200 14,250
Consolidated Stores Corp+ 118 3,717 868 27,342
Corporate Express Inc 650 6,256 1,250 12,031
Costco Co Inc+ 315 14,825 1,716 80,759
CVS Corp 494 17,969 2,816 102,432
Dayton-Hudson Corp 568 20,448 3,288 118,368
Department 56 Inc 200 5,900 200 5,900
Dillards Inc Class A 128 3,696 848 24,486
Dollar General Corp 515 13,841 1,041 27,977
Dollar Tree Stores Inc 200 5,800 550 15,950
Eastman Kodak Co 393 30,703 2,572 200,938
Enesco Group Inc 220 5,308 170 4,101
</TABLE>
148
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,350 $ 47,925 900 $ 31,950 2,000 $ 71,000
1,600 46,100 1,500 43,219 3,100 89,319
128 7,296 0 -- 0 --
2,951 45,733 2,610 40,453 5,915 91,687
1,600 32,400 1,500 30,375 3,200 64,800
3,300 44,550 2,700 36,450 5,700 76,950
2,200 51,425 2,100 49,088 4,400 102,850
2,100 61,031 2,000 58,125 4,200 122,063
5,068 184,982 6,693 244,294 10,355 377,958
2,800 32,550 2,400 27,900 5,200 60,450
1,700 53,338 1,700 53,338 3,600 112,950
400 15,400 400 15,400 900 34,650
400 6,350 300 4,763 600 9,525
------------ ------------ ------------
$ 1,206,040 $ 1,182,702 $ 2,359,762
$ 1,458,635 $ 1,447,185 $ 2,858,508
3.41% 4.22% 5.38%
71 $ 3,053 63 $ 2,709 113 $ 4,859
300 25,125 300 25,125 600 50,250
351 8,534 253 6,151 237 5,762
2,821 73,170 2,633 68,293 5,008 129,895
1,300 35,181 1,200 32,475 2,600 70,363
2,400 43,350 2,400 43,350 5,000 90,313
15,562 451,298 15,272 442,888 27,981 811,449
2,200 86,625 2,100 82,688 4,400 173,250
497 16,774 367 12,386 0 --
1,800 34,088 1,700 32,194 3,700 70,069
200 7,700 100 3,850 300 11,550
2,288 10,010 1,620 7,088 3,364 14,718
1,783 55,050 1,773 54,741 3,170 97,874
7,675 217,778 7,532 213,720 13,740 389,873
2,400 28,500 2,300 27,313 4,800 57,000
1,929 60,764 1,775 55,913 3,487 109,841
2,250 21,656 2,250 21,656 4,700 45,238
3,963 186,509 3,434 161,613 7,096 333,956
6,638 241,457 5,998 218,177 15,540 565,267
7,756 279,216 6,726 242,136 17,770 639,720
300 8,850 200 5,900 600 17,700
1,975 57,028 1,978 57,115 3,580 103,373
2,506 67,349 2,220 59,663 5,346 143,674
950 27,550 950 27,550 2,000 58,000
5,916 462,187 5,391 421,172 10,631 830,547
299 7,213 214 5,163 210 5,066
</TABLE>
149
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ensco International Inc 700 $ 7,350 1,900 $ 19,950
Family Dollar Stores Inc 560 7,105 1,840 23,345
Federated Department Stores
Inc+ 259 11,283 1,703 74,187
Fingerhut Co 505 12,246 400 9,700
Footstar Inc 46 1,340 245 7,136
Fred Myer Inc 200 7,863 1,200 47,175
Gap Inc 578 29,514 2,955 150,890
Global DirectMail Corp 200 2,663 200 2,663
Hancock Fabrics Inc 0 -- 0 --
Harcourt General Inc 89 4,322 582 28,263
Heilig Meyers Co 524 5,961 410 4,664
Home Depot Inc 2,166 83,390 10,942 421,266
Homebase Inc 365 2,236 0 --
Ito Yokado Co Ltd ADR
(Japan) 1,720 78,474 6,360 290,175
Jones Apparel Group Inc 400 7,750 1,000 19,375
Jostens Inc 107 2,127 280 5,565
K Mart Corp+ 804 10,251 3,867 49,304
Kohls Corp 672 30,534 1,740 79,061
Limited Inc 277 5,782 1,809 37,763
Longs Drug Stores Corp 76 2,594 349 11,910
Lowe's Co Inc 514 18,022 2,780 97,474
May Department Stores Co 294 16,538 1,818 102,263
Michaels Stores Inc 0 -- 0 --
Micro Warehouse Inc 300 4,875 300 4,875
Midas Inc 10 226 146 3,303
Neiman Marcus Group Inc 0 -- 300 7,294
Newell Co 259 12,367 1,230 58,733
Nordstrom Inc 244 7,305 1,190 35,626
Office Depot Inc+ 1,038 26,469 2,950 75,225
Officemax Inc 500 5,250 1,850 19,425
Payless ShoeSource Inc 217 8,924 511 21,015
Penney (J C) Co Inc 356 17,644 2,063 102,247
PetSmart Inc 1,200 5,925 1,300 6,419
Pier 1 Imports Inc 450 4,472 1,450 14,409
Proffitts Inc 400 10,200 1,100 28,050
Rite Aid Corp 218 7,889 2,078 75,198
Ross Stores Inc 200 7,275 700 25,463
Ruddick Corp 0 -- 0 --
Saks Holdings Inc 200 4,188 300 6,281
School Specialty Inc 0 -- 102 1,167
Sears Roebuck & Co 508 23,082 3,105 141,083
Service Merchandise Co 771 1,060 0 --
Sherwin Williams Co 261 6,231 1,419 33,879
Staples Inc 1,094 29,675 3,095 83,952
</TABLE>
150
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,700 $ 38,850 3,500 $ 36,750 7,400 $ 77,700
3,470 44,026 3,280 41,615 6,984 88,610
3,866 168,413 3,622 157,783 6,911 301,060
714 17,315 509 12,343 180 4,365
521 15,174 382 11,126 654 19,048
2,800 110,075 2,100 82,556 4,500 176,906
6,883 351,463 6,016 307,192 15,920 812,915
300 3,994 200 2,663 400 5,325
342 3,249 0 -- 0 --
1,319 64,054 1,211 58,809 2,253 109,411
834 9,487 544 6,188 1,300 14,787
25,612 986,061 22,472 865,171 55,546 2,138,520
497 3,044 367 2,248 0 --
14,800 675,250 14,112 643,860 27,104 1,236,619
1,900 36,813 1,800 34,875 3,900 75,563
690 13,714 567 11,269 1,398 27,785
9,017 114,967 8,437 107,572 15,826 201,781
3,408 154,851 2,416 109,777 7,216 327,877
4,117 85,942 3,867 80,724 7,326 152,930
794 27,095 671 22,898 1,256 42,861
6,398 224,330 5,884 206,308 11,418 400,344
4,285 241,031 3,834 215,662 7,597 427,331
0 -- 0 -- 200 4,700
600 9,750 400 6,500 700 11,375
341 7,715 265 5,996 510 11,539
600 14,588 500 12,156 1,100 26,744
2,804 133,891 2,586 123,481 6,330 302,258
2,806 84,005 2,726 81,610 4,952 148,251
5,942 151,521 5,567 141,959 11,980 305,490
3,500 36,750 3,250 34,125 7,050 74,025
1,043 42,893 1,015 41,742 2,104 86,527
4,661 231,011 4,257 210,988 8,225 407,652
2,200 10,863 1,600 7,900 3,000 14,813
2,800 27,825 2,700 26,831 5,700 56,644
2,100 53,550 2,000 51,000 4,300 109,650
4,732 171,239 4,304 155,751 8,506 307,811
1,400 50,925 1,300 47,288 2,800 101,850
714 10,799 524 7,926 0 --
700 14,656 500 10,469 1,300 27,219
213 2,436 179 2,047 405 4,632
7,187 326,559 6,526 296,525 12,875 585,008
1,516 2,085 1,111 1,528 0 --
3,262 77,880 3,018 72,055 5,670 135,371
5,844 158,519 5,560 150,815 11,885 322,381
</TABLE>
151
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Sunglass Hut International
Inc 600 $ 3,450 500 $ 2,875
Talbots Inc 200 4,213 200 4,213
Tandy Corp 126 6,875 795 43,377
Tech Data Corp 200 7,563 600 22,688
TJX Companies Inc 326 7,274 2,436 54,353
Toys R Us Inc+ 471 8,743 2,221 41,227
U.S. Office Products Co 0 -- 231 1,729
Venator Group Inc+ 187 1,695 1,047 9,488
Walgreen Co 680 26,180 3,684 141,834
WalMart Stores Inc 3,248 190,819 16,793 986,588
Williams-Sonoma Inc 0 -- 0 --
------------ ------------
TOTAL RETAIL & RELATED
- VALUE $ 1,080,089 $ 4,656,690
- COST $ 912,799 $ 3,415,568
SERVICES
PERCENT OF NET ASSETS 0.05% 0.09%
Block (H R) Inc 115 $ 4,499 828 $ 32,396
CMS Energy Corp 0 -- 0 --
Corrections Corp of America 400 6,125 1,100 16,844
Public Service Enterprise
Group 388 14,211 1,835 67,207
Service Corp International 409 13,855 2,018 68,360
Sotheby's Holdings Inc 611 10,463 0 --
------------ ------------
TOTAL SERVICES
- VALUE $ 49,153 $ 184,807
- COST $ 51,475 $ 167,299
SHIPPING
PERCENT OF NET ASSETS 0.00% 0.00%
Halter Marine Group Inc 273 $ 2,457 282 $ 2,538
------------ ------------
TOTAL SHIPPING
- VALUE $ 2,457 $ 2,538
- COST $ 3,161 $ 3,332
TELECOMMUNICATIONS
PERCENT OF NET ASSETS 2.07% 4.67%
ADC Telecommunications 672 $ 14,910 1,860 $ 41,269
Adtran Inc 100 2,150 200 4,300
Advanced Fibre Communication 300 2,138 700 4,988
Airtouch Communications+ 910 51,188 4,068 228,825
Alcatel Alsthom Compagnie
Generale d'electricite ADR
(France) 3,265 98,561 11,620 350,778
Aliant Communications Inc 0 -- 0 --
Alltel Corp 329 14,846 2,237 100,945
Ameritech Corp 1,714 80,771 8,202 386,518
</TABLE>
152
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,000 $ 5,750 700 $ 4,025 1,300 $ 7,475
0 -- 200 4,213 400 8,425
1,822 99,413 1,817 99,140 3,358 183,221
1,200 45,375 1,100 41,594 2,300 86,969
5,858 130,707 4,914 109,644 12,982 289,661
5,070 94,112 4,917 91,272 9,313 172,873
480 3,600 403 3,024 912 6,838
2,678 24,269 2,311 20,943 4,309 39,050
8,662 333,487 7,556 290,906 20,070 772,695
39,060 2,294,774 34,380 2,019,824 84,854 4,985,172
0 -- 0 -- 400 10,200
------------ ------------ ------------
$ 10,556,160 $ 9,521,695 $ 21,077,864
$ 7,629,400 $ 7,083,125 $ 16,132,003
0.16% 0.18% 0.19%
1,884 $ 73,712 1,843 $ 72,107 3,490 $ 136,546
1,314 55,599 0 -- 0 --
2,100 32,156 2,000 30,625 4,200 64,313
4,244 155,436 4,016 147,086 7,664 280,694
4,712 159,619 4,446 150,608 8,309 281,467
848 14,522 623 10,669 0 --
------------ ------------ ------------
$ 491,044 $ 411,095 $ 763,020
$ 404,453 $ 363,945 $ 721,820
0.00% 0.00% 0.00%
369 $ 3,321 330 $ 2,970 630 $ 5,670
------------ ------------ ------------
$ 3,321 $ 2,970 $ 5,670
$ 4,327 $ 3,853 $ 7,435
7.13% 8.99% 10.71%
3,596 $ 79,786 3,416 $ 75,793 7,220 $ 160,194
200 4,300 300 6,450 700 15,050
1,300 9,263 1,300 9,263 2,800 19,950
9,966 560,588 8,797 494,831 21,655 1,218,094
25,951 783,396 25,515 770,233 46,611 1,407,069
490 12,128 0 -- 0 --
5,047 227,735 3,240 146,205 6,039 272,510
19,138 901,878 16,796 791,511 41,604 1,960,587
</TABLE>
153
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Andrew Corp+ 160 $ 2,370 762 $ 11,287
Ascend Communications Inc+ 250 8,750 1,500 52,500
Aspect Telecommunication
Corp 0 -- 500 11,906
AT & T Corp 2,497 125,156 14,547 729,172
Bell Atlantic Corp 2,284 100,781 11,590 511,408
BellSouth Corp 1,380 94,615 7,952 545,208
British Telecommunications
PLC ADR (UK) 1,874 239,754 6,923 885,710
Century Telephone Enterprise 0 -- 0 --
Ciena Corp 200 5,625 600 16,875
Comsat Corp 510 11,124 800 17,450
Cox Communications Inc Class
A 313 13,146 974 40,908
Deutsche Telekom Ag ADR
(Germany) 4,076 97,823 14,658 351,791
DSC Communications Corp 226 5,452 948 22,871
DSP Communications Inc 0 -- 500 5,719
Ericsson L M Telephone ADR
(Sweden) 2,182 46,640 7,926 169,418
Excel Communications Inc 400 8,075 900 18,169
Federal Signal Corp 498 10,147 490 9,984
Frontier Corp 290 8,809 1,300 39,488
Glenayre Technologies Inc 650 4,388 650 4,388
Global TeleSystems Group Inc 200 6,275 500 16,000
GTE Corp 1,466 73,299 7,143 357,149
Hong Kong Telecommunications
Ltd ADR (Hong Kong) 9,762 161,682 34,944 578,759
ICG Communications Inc 200 3,575 600 10,763
IXC Communications Inc 0 -- 100 2,450
Loral Space & Communications 842 13,367 2,582 40,989
Lucent Technologies Inc 1,938 137,355 9,808 695,141
MCI Communications Corp 994 49,700 5,797 289,850
McLeod Inc Class A 200 5,800 500 14,500
NEXTEL Communications Class
A+ 368 6,647 2,180 39,376
Nippon Telegraph & Telegraph
ADR (Japan) 1,824 68,285 6,939 259,779
Nokia Corp 506 33,807 1,788 119,461
Northern Telecom Ltd 802 38,296 3,874 184,984
Omnipoint Corp 200 2,200 300 3,300
Paging Network Inc 500 3,625 700 5,075
Pairgain Technologies Inc 0 -- 600 5,288
Pan Am Sat Corp 0 -- 200 8,475
Picturetel Corp 400 2,350 400 2,350
Qualcom Inc 300 13,181 900 39,544
Qwest Communications
International Inc 700 17,456 1,800 45,000
SBC Communication Inc 2,706 102,827 13,672 519,535
Scientific-Atlanta Inc 85 1,503 684 12,098
SkyTel Communications Inc+ 0 -- 400 5,250
</TABLE>
154
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,659 $ 24,574 1,415 $ 20,960 3,373 $ 49,963
3,500 122,500 3,110 108,850 7,460 261,100
0 -- 0 -- 1,100 26,194
33,383 1,673,302 29,101 1,458,667 56,461 2,830,102
27,002 1,191,462 23,788 1,049,645 58,694 2,589,872
18,213 1,248,728 16,690 1,144,307 32,049 2,197,359
15,243 1,950,150 15,012 1,920,597 27,469 3,514,314
1,242 56,356 0 -- 0 --
1,300 36,563 1,200 33,750 2,700 75,938
1,419 30,952 1,414 30,843 2,890 63,038
1,794 75,348 1,627 68,334 3,549 149,058
32,515 780,360 31,944 766,655 58,501 1,404,023
2,139 51,603 2,076 50,083 3,737 90,155
0 -- 600 6,863 1,000 11,438
17,574 375,644 17,356 370,985 31,610 675,664
1,700 34,319 1,600 32,300 3,300 66,619
807 16,443 802 16,341 1,780 36,268
3,037 92,249 2,654 80,615 5,422 164,693
1,175 7,931 800 5,400 1,425 9,619
900 28,800 900 28,800 1,900 60,800
16,762 838,100 14,729 736,450 36,397 1,819,849
77,475 1,283,179 76,335 1,264,297 140,241 2,322,741
1,100 19,731 1,100 19,731 2,300 41,256
300 7,350 200 4,900 400 9,800
4,912 77,978 4,674 74,200 9,966 158,210
22,798 1,615,807 20,032 1,419,767 49,604 3,515,683
13,302 665,100 12,159 607,950 22,899 1,144,950
900 26,100 900 26,100 1,800 52,200
4,988 90,096 4,701 84,912 9,525 172,045
16,460 616,221 15,758 589,940 30,174 1,129,639
3,866 258,297 3,852 257,362 7,002 467,821
9,060 432,615 7,948 379,517 19,672 939,338
400 4,400 400 4,400 600 6,600
1,500 10,875 1,300 9,425 2,900 21,025
1,300 11,456 1,200 10,575 2,600 22,913
300 12,713 300 12,713 700 29,663
700 4,113 500 2,938 800 4,700
1,700 74,694 1,600 70,300 3,400 149,388
3,499 87,475 3,300 82,500 7,000 175,000
32,030 1,217,139 28,152 1,069,775 69,450 2,639,099
1,559 27,575 1,365 24,143 2,554 45,174
0 -- 0 -- 0 --
</TABLE>
155
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Southern New England
Telecommu 0 $ -- 0 $ --
Sprint Corp 595 39,902 3,423 229,555
Tel-Save Holdings Inc 0 -- 500 7,500
Tele Danmark A/S ADR
(Denmark) 1,409 72,563 5,078 261,517
Tele-Communications TCI
Ventures Group Class A 1,816 30,191 5,490 91,271
Telecommunications of New
Zealand Corp ADR (New
Zealand) 969 29,070 3,458 103,740
Telefonica de Espana SA ADR
(Spain) 508 55,436 1,825 199,153
Telephone & Data System Inc 0 -- 0 --
Tellabs Inc+ 257 10,858 1,381 58,347
U.S. West Inc 689 35,828 4,078 212,071
Vanguard Cellular Systems
Class A 411 7,706 330 6,188
Vodafone Group PLC ADR (UK) 908 114,067 3,182 399,738
Western Wireless Corp Class
A 0 -- 100 1,563
WorldCom Inc+ 1,444 59,114 8,291 339,412
------------ ------------
TOTAL TELECOMMUNICATIONS
- VALUE $ 2,243,184 $ 9,727,046
- COST $ 1,753,983 $ 7,042,104
TEXTILES
PERCENT OF NET ASSETS 0.05% 0.05%
Brown Group Inc 31 $ 457 180 $ 2,655
Burlington Industries Inc 729 6,926 477 4,532
Cintas Corp 420 17,115 900 36,675
Collins & Aikman Corp 0 -- 0 --
Shaw Industries Inc 1,260 19,058 1,630 24,654
Springs Industries Inc Class
A 33 1,091 195 6,447
Unifi Inc 268 5,963 800 17,800
West Point Stevens Inc 200 5,900 600 17,775
------------ ------------
TOTAL TEXTILES
- VALUE $ 56,510 $ 110,538
- COST $ 52,183 $ 114,687
TOBACCO
PERCENT OF NET ASSETS 0.23% 0.55%
BAT Industries PLC ADR (UK) 4,303 $ 80,680 15,554 $ 291,638
Fortune Brands Inc 260 7,166 1,416 39,029
Philip Morris Co Inc 3,481 144,678 18,097 752,156
Swedish Match AB ADR
(Sweden) 552 17,112 2,102 65,162
Swedish Match AB ADR
(Sweden) 0 -- 2 --
------------ ------------
TOTAL TOBACCO
- VALUE $ 249,636 $ 1,147,985
- COST $ 228,564 $ 952,678
</TABLE>
156
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
975 $ 63,192 0 $ -- 0 $ --
7,930 531,806 7,239 485,465 14,081 944,307
900 13,500 600 9,000 1,900 28,500
11,291 581,487 11,116 572,474 20,228 1,041,742
10,502 174,596 9,968 165,718 23,096 383,971
7,783 233,490 7,648 229,440 13,938 418,140
4,043 441,192 3,929 428,752 7,200 785,700
827 27,394 0 -- 0 --
3,217 135,918 2,856 120,666 7,388 312,143
9,250 481,000 8,387 436,118 16,360 850,720
595 11,156 427 8,006 390 7,313
7,096 891,435 6,909 867,942 12,702 1,595,688
0 -- 0 -- 300 4,688
18,975 776,789 17,380 711,494 33,221 1,359,984
------------ ------------ ------------
$ 22,120,327 $ 20,275,251 $ 41,929,661
$ 15,710,932 $ 14,851,686 $ 31,825,477
0.07% 0.09% 0.11%
338 $ 4,986 221 $ 3,260 253 $ 3,732
1,136 10,792 749 7,116 1,902 18,069
1,740 70,905 1,730 70,498 3,580 145,885
0 -- 0 -- 400 2,600
3,015 45,602 2,905 43,938 6,200 93,775
403 13,324 319 10,547 650 21,491
1,582 35,200 1,482 32,974 3,140 69,865
1,100 32,588 1,100 32,588 2,300 68,138
------------ ------------ ------------
$ 213,397 $ 200,921 $ 423,555
$ 216,631 $ 208,452 $ 457,694
0.85% 1.07% 1.38%
34,608 $ 648,900 34,081 $ 639,019 62,406 $ 1,170,113
3,194 88,035 2,994 82,522 5,592 154,129
42,259 1,756,389 37,208 1,546,457 91,862 3,818,013
4,727 146,537 4,655 144,305 8,593 266,383
7 -- 11 -- 1 --
------------ ------------ ------------
$ 2,639,861 $ 2,412,303 $ 5,408,638
$ 2,187,574 $ 2,009,236 $ 4,761,108
</TABLE>
157
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
TRANSPORTATION
PERCENT OF NET ASSETS 0.19% 0.34%
Alexander & Baldwin Inc 204 $ 4,794 590 $ 13,865
Burlington Northern Santa Fe 196 18,240 1,313 122,191
Canadian National Railway Co 4 180 6 285
Carnival Corp Class A 1,400 40,425 4,000 115,500
CNF Transportation Inc 262 8,188 661 20,656
Consolidated Freightways
Corp 31 271 181 1,584
CSX Corp 277 10,457 1,813 68,441
Fritz Companies Inc 200 1,600 200 1,600
Galileo International Inc 200 6,538 500 16,344
Hunt (J B) Transport
Services 0 -- 0 --
Kansas City Southern
Industries 543 17,851 1,610 52,929
Laidlaw Inc Class B 495 4,269 2,679 23,106
Norfolk Southern Corp 592 16,687 3,000 84,563
Overseas Shipholding Group 393 5,600 310 4,418
Pittston Brink's Group 323 10,134 620 19,453
Pittston Burlington Group 61 484 160 1,270
Roadway Express Inc 46 696 158 2,390
Tidewater Inc 365 7,665 750 15,750
Trinity Industries Inc 322 9,741 640 19,360
Union Pacific Corp 368 14,651 2,039 81,178
Viad Corp 436 9,047 1,280 26,560
Wisconsin Central Transport 400 5,025 700 8,794
Xtra Corp 200 11,775 200 11,775
Yellow Corp 49 585 223 2,662
------------ ------------
TOTAL TRANSPORTATION
- VALUE $ 204,903 $ 714,674
- COST $ 232,803 $ 758,508
UTILITIES
PERCENT OF NET ASSETS 0.38% 0.92%
AES Corp+ 0 $ -- 0 $ --
Allegheny Energy Inc 0 -- 0 --
Ameren Corp 208 8,229 1,097 43,400
American Electric Power Inc 306 13,847 1,550 70,138
American Water Works Co Inc 300 8,250 900 24,750
Baltimore Gas & Electric Co 237 7,303 1,179 36,328
Calenergy Inc+ 0 -- 0 --
Carolina Power & Light Co 263 11,325 1,183 50,943
Central & South West Corp 340 8,883 1,698 44,360
Cinergy Corp 227 7,888 1,227 42,638
Conectiv Inc 1,067 21,740 855 17,421
Consolidated Edison Inc 345 16,323 1,944 91,976
Dominion Resources Inc 278 11,589 1,545 64,407
</TABLE>
158
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
0.48% 0.61% 0.71%
1,114 $ 26,179 1,109 $ 26,062 2,280 $ 53,580
2,929 272,580 2,685 249,873 5,134 477,783
12 541 11 24 1,082
7,600 219,450 7,200 207,900 15,400 444,675
1,310 40,937 1,273 39,781 2,638 82,438
405 3,544 286 2,503 569 4,979
4,043 152,623 3,783 142,808 7,177 270,932
300 2,400 0 -- 400 3,200
1,000 32,688 900 29,419 2,000 65,375
596 10,095 0 -- 0 --
2,995 98,461 2,855 93,858 6,080 199,880
5,933 51,172 5,652 48,749 10,412 89,804
6,946 195,790 6,543 184,431 12,357 348,313
550 7,837 405 5,771 375 5,344
1,157 36,301 1,143 35,862 2,304 72,288
328 2,604 221 1,754 402 3,191
270 4,084 243 3,675 359 5,430
1,525 32,025 1,485 31,185 3,265 68,565
1,205 36,451 1,135 34,334 2,305 69,726
4,505 179,355 4,158 165,540 8,035 319,893
2,441 50,651 2,328 48,306 5,008 103,916
1,400 17,588 1,300 16,331 2,800 35,175
300 17,663 200 11,775 500 29,438
585 6,983 299 3,569 437 5,217
------------ ------------ ------------
$ 1,498,002 $ 1,383,982 $ 2,760,224
$ 1,558,955 $ 1,454,028 $ 3,155,232
1.72% 1.76% 1.91%
2,296 $ 62,566 0 $ -- 0 $ --
1,809 48,165 0 -- 0 --
2,536 100,331 2,410 95,346 4,405 174,273
3,501 158,420 3,250 147,063 6,220 281,455
1,800 49,500 1,700 46,750 3,600 99,000
2,668 82,208 2,589 79,774 4,887 150,581
900 22,894 0 -- 0 --
2,824 121,609 2,584 111,274 4,954 213,332
3,820 99,798 3,677 96,062 6,978 182,300
2,986 103,764 2,746 95,424 5,214 181,187
1,525 31,072 1,090 22,209 1,027 20,925
4,333 205,005 4,067 192,420 7,753 366,814
3,604 150,242 3,349 139,611 6,311 263,090
</TABLE>
159
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
DTE Energy Co 238 $ 10,026 1,130 $ 47,601
Duke Power Co 451 28,131 2,890 180,264
Edison International 527 14,987 2,933 83,407
El Paso Energy Corp 0 -- 0 --
Energy East Corp 0 -- 0 --
Entergy Corp 340 9,796 1,936 55,781
FirstEnergy Corp 350 10,106 1,810 52,264
Florida Progress Corp 0 -- 0 --
FPL Group Inc 241 16,042 1,428 95,051
GPU Inc 242 9,090 1,073 40,305
Hawaiian Electric Industries
Inc 192 7,212 440 16,528
Houston Industries Inc 434 12,505 2,418 69,669
Idaho Power Co 0 -- 0 --
Illinova Corp 0 -- 0 --
Interstate Energy Corp 341 10,273 260 7,833
IPALCO Enterprises Inc 0 -- 0 --
Kansas City Power & Light Co 0 -- 0 --
LG & E Energy Corp 0 -- 0 --
Midamerican Energy Co 0 -- 0 --
Minnesota Power & Light Co 349 14,854 270 11,492
Montana Power Co 0 -- 0 --
National Power ADR (UK) 828 25,979 2,900 90,988
Nevada Power Co 444 11,017 360 8,933
New Century Energies Inc 0 -- 0 --
New England Electric System 0 -- 0 --
Niagara Mohawk Power Corp+ 131 2,031 1,497 23,204
NIPSCO Industries Inc 0 -- 0 --
Northeast Utilities+ 0 -- 0 --
Northern States Power Co 140 3,710 1,180 31,270
OGE Energy Corp 0 -- 0 --
Pacificorp 507 11,439 2,393 53,992
PECO Energy Co 322 11,029 1,788 61,239
PG & E Corp 556 17,862 3,120 100,230
Pinnacle West Capital Corp 0 -- 0 --
Potomac Electric Power Co 0 -- 0 --
PP & L Resources Inc 257 6,056 1,370 32,281
Public Service Company Of
New 0 -- 0 --
Puget Sound Power & Light Co 0 -- 0 --
SCANA Corp 0 -- 0 --
Sempra Energy+ 229 5,814 1,959 49,824
Southern Co 1,015 28,547 5,570 156,656
TECO Energy Inc 0 -- 0 --
Texas Utilities Co 351 14,918 2,264 96,220
</TABLE>
160
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,643 $ 111,336 2,547 $ 107,292 4,721 $ 198,872
6,626 413,297 6,049 377,306 11,801 736,087
6,587 187,318 6,115 173,895 12,382 352,113
1,684 41,784 0 -- 0 --
1,087 48,915 0 -- 0 --
4,475 128,936 4,234 121,992 8,009 230,759
4,250 122,719 4,015 115,933 7,420 214,252
1,434 60,497 0 -- 0 --
3,344 222,585 3,130 208,341 5,989 398,643
2,342 87,971 2,181 81,924 4,067 152,767
823 30,914 803 30,163 1,780 66,861
5,464 157,431 4,880 140,605 9,322 268,590
585 17,806 0 -- 0 --
1,153 29,762 0 -- 0 --
473 14,249 343 10,333 667 20,093
882 38,808 0 -- 0 --
955 27,158 0 -- 0 --
992 25,420 0 -- 0 --
680 16,873 0 -- 0 --
480 20,430 350 14,897 335 14,258
824 32,136 0 -- 0 --
6,411 201,145 6,356 199,420 11,558 362,632
652 16,178 472 11,712 450 11,166
1,535 70,802 0 -- 0 --
1,008 40,698 0 -- 0 --
3,427 53,119 2,486 38,533 4,609 71,439
2,030 59,378 0 -- 0 --
1,916 28,740 0 -- 0 --
2,694 71,391 2,586 68,529 4,748 125,822
1,224 33,737 0 -- 0 --
5,405 121,950 5,116 115,430 9,774 220,526
4,107 140,665 3,830 131,178 7,287 249,580
6,984 224,361 6,526 209,648 12,372 397,451
1,334 57,612 0 -- 0 --
1,806 44,247 0 -- 0 --
3,082 72,620 2,923 68,873 5,427 127,874
650 13,000 470 9,400 0 --
971 24,396 0 -- 0 --
1,446 44,374 0 -- 0 --
4,349 110,626 2,159 54,931 4,015 102,135
12,855 361,547 11,751 330,497 22,665 637,453
1,789 47,520 0 -- 0 --
5,158 219,215 4,336 184,280 7,986 339,405
</TABLE>
161
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Unicom Corp 308 $ 10,973 1,744 $ 62,130
Wisconsin Energy Corp 0 -- 0 --
------------ ------------
TOTAL UTILITIES
- VALUE $ 407,774 $ 1,913,523
- COST $ 354,663 $ 1,608,261
</TABLE>
162
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,987 $ 142,037 3,784 $ 134,805 7,157 $ 254,968
1,645 47,808 0 -- 0 --
------------ ------------ ------------
$ 5,319,085 $ 3,965,850 $ 7,486,703
$ 4,232,081 $ 3,243,571 $ 6,318,154
</TABLE>
163
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO 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%
Morrison Knudsen Corp
expires 03/11/2003 4 $ 14 17 $ 61
Edison Brothers Stores
Warrant+ 0 -- 0 --
Golden State Bancorp
Warrants 200 856 500 2,250
Petrofina SA Warrants 0 -- 100 431
------------ ------------
TOTAL WARRANTS
- VALUE $ 870 $ 2,742
- COST $ 1,154 $ 2,258
TOTAL COMMON STOCKS
- VALUE $ 20,723,975 $ 89,698,253
- COST $ 18,974,047 $ 74,922,173
</TABLE>
164
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(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%
27 $ 96 25 $ 89 42 $ 150
16 17 0 -- 0 --
800 3,425 900 4,050 1,900 8,134
100 431 100 431 200 863
------------ ------------ ------------
$ 3,969 $ 4,570 $ 9,147
$ 9,202 $ 4,845 $ 7,982
$202,815,509 $184,582,142 $390,440,537
$165,619,840 $154,050,654 $345,521,785
</TABLE>
165
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO 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 52.09% 44.49%
U.S. TREASURY BONDS
PERCENT OF NET ASSETS 11.30% 5.59%
U.S. Treasury Bonds, 6.00%-
13.75%, 05/15/01-11/15/27 $ 9,550,000 $ 12,223,274 $ 8,950,000 $ 11,630,836
------------ ------------
TOTAL U.S. TREASURY BONDS
- VALUE $ 12,223,274 $ 11,630,836
- COST $ 11,881,077 $ 11,202,835
U.S. TREASURY NOTES
PERCENT OF NET ASSETS 40.79% 38.90%
U.S. Treasury Notes, 5.25%-
8.75%, 08/31/99-05/15/08 $42,300,000 $ 44,131,163 $77,370,000 $ 80,933,282
------------ ------------
TOTAL U.S. TREASURY NOTES
- VALUE $ 44,131,163 $ 80,933,282
- COST $ 42,917,294 $ 78,487,159
TOTAL U.S. TREASURY
SECURITIES
- VALUE $ 56,354,437 $ 92,564,118
- COST $ 54,798,371 $ 89,689,994
</TABLE>
166
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
27.35% 15.11% 0.00%
5.74% 14.23% 0.00%
$13,850,000 $ 17,804,120 $24,440,000 $ 32,100,652 $ 0 $ 0
------------ ------------ ------------
$ 17,804,120 $ 32,100,652 --
$ 16,223,048 $ 28,643,553 --
21.60% 0.88% 0.00%
$63,855,000 $ 66,994,910 $ 1,850,000 $ 1,988,874 $ 0 $ 0
------------ ------------ ------------
$ 66,994,910 $ 1,988,874 --
$ 65,013,445 $ 1,933,595 --
$ 84,799,030 $ 34,089,526 --
$ 81,236,493 $ 30,577,148 --
</TABLE>
167
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
SHORT TERM INSTRUMENTS
PERCENT OF NET ASSETS 44.70% 22.53%
CASH EQUIVALENTS
PERCENT OF NET ASSETS 7.31% 6.37%
Dreyfus Institutional Money
Market Fund++ 1,705,753 $ 1,705,753 1,653,903 $ 1,653,903
Janus Institutional Money
Market Fund++ 3,700,000 3,700,000 1,600,000 1,600,000
Merrimac Cash Fund--Premium
Class++ 2,500,000 2,500,000 10,000,000 10,000,000
------------ ------------
TOTAL CASH EQUIVALENTS
- VALUE $ 7,905,753 $ 13,253,903
- COST $ 7,905,753 $ 13,253,903
</TABLE>
168
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
19.72% 13.37% 10.77%
6.68% 6.52% 5.69%
119,302 $ 119,302 1,008,395 $ 1,008,395 1,280,462 $ 1,280,462
5,200,000 5,200,000 3,700,000 3,700,000 2,000,000 2,000,000
15,400,000 15,400,000 10,000,000 10,000,000 19,000,000 19,000,000
------------ ------------ ------------
$ 20,719,302 $ 14,708,395 $ 22,280,462
$ 20,719,302 $ 14,708,395 $ 22,280,462
</TABLE>
169
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS
AUGUST 31, 1998 (UNAUDITED)
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------
SHORT TERM INSTRUMENTS (CONTINUED)
REPURCHASE AGREEMENTS
PERCENT OF NET ASSETS 9.24% 4.33%
Goldman Sachs Repurchase
Agreements, dated
8/31/98, due 9/2/98,
with a maturity value
of $66,031,845 and an
effective yield of
5.79%, collateralized
by Federal Home Loan
Mortgage Corporation
obligations and Federal
National Mortgage
Association obligations
with rates ranging from
6.60% to 7.00%, with
maturity dates ranging
from 2/1/28 to 6/1/36
and with an aggregate
market value of
$67,320,000.++ $10,000,000 $ 10,000,000 $ 9,000,000 $ 9,000,000
------------ ------------
TOTAL REPURCHASE
AGREEMENTS
- VALUE $ 10,000,000 $ 9,000,000
- COST $ 10,000,000 $ 9,000,000
U.S. TREASURY BILLS
PERCENT OF NET ASSETS 28.15% 11.83%
U.S. Treasury Bills,
4.37%-- 5.28%*,
09/03/98--11/12/98 $30,645,000 $ 30,455,756 $24,755,000 $ 24,616,385
------------ ------------
TOTAL U.S. TREASURY
BILLS
- VALUE $ 30,455,756 $ 24,616,385
- COST $ 30,455,510 $ 24,616,712
TOTAL SHORT TERM
INSTRUMENTS
- VALUE $ 48,361,509 $ 46,870,288
- COST $ 48,361,263 $ 46,870,615
TOTAL INVESTMENT IN
SECURITIES
(NOTES 1 AND 3) - VALUE $125,439,921 $229,132,659
- COST** $122,133,681 $211,482,782
------------ ------------
TOTAL INVESTMENT IN
SECURITIES 115.95% $125,439,921 110.13% $229,132,659
Other Assets and
Liabilites, Net (15.95)% (17,256,386) (10.13)% (21,065,102)
----------- ------------ ----------- ------------
TOTAL NET ASSETS 100.00% $108,183,535 100.00% $208,067,557
=========== ============ ----------- ============
Gross Unrealized
Appreciation $ 5,823,672 $ 24,902,218
Gross Unrealized
Depreciation (2,517,432) (7,252,341)
------------ ------------
GROSS UNREALIZED
APPRECIATION $ 3,306,240 $ 17,649,877
============ ============
</TABLE>
+ Non-income earning securities.
++ Represents collateral received from securities lending transactions. See
Note 4.
* Yield to Maturity.
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
The accompanying notes are an integral part of these financial statements.
170
<PAGE>
MASTER INVESTMENT PORTFOLIO--LIFEPATH MASTER PORTFOLIOS--AUGUST 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
6.13% 3.99% 4.85%
$19,000,000 $ 19,000,000 $ 9,000,000 $ 9,000,000 $19,000,000 $ 19,000,000
------------ ------------ ------------
$ 19,000,000 $ 9,000,000 $ 19,000,000
$ 19,000,000 $ 9,000,000 $ 19,000,000
6.91% 2.86% 0.23%
$21,593,000 $ 21,425,646 $ 6,483,000 6,439,721 $ 907,000 $ 902,911
------------ ------------ ------------
$ 21,425,646 $ 6,439,721 $ 902,911
$ 21,425,453 $ 6,439,670 $ 902,898
$ 61,144,948 $ 30,148,116 $ 42,183,373
$ 61,144,755 $ 30,148,065 $ 42,183,360
$348,759,487 $248,819,784 $432,623,910
$308,001,088 $214,775,867 $387,705,145
------------ ------------ ------------
112.48% $348,759,487 110.33% $248,819,784 110.50% $432,623,910
(12.48)% (38,701,499) (10.33)% (23,301,346) (10.50)% (41,122,534)
- ----------- ------------ ----------- ------------ ----------- ------------
100.00% $310,057,988 100.00% $225,518,438 100.00% $391,501,376
=========== ============ =========== ============ =========== ============
$ 55,825,734 $ 48,247,767 $ 77,725,869
(15,067,335) (14,203,850) (32,807,104)
------------ ------------ ------------
$ 40,758,399 $ 34,043,917 $ 44,918,765
============ ============ ============
</TABLE>
171
<PAGE>
<TABLE>
<CAPTION>
LifePath Funds Statement of Assets and Liabilities (Unaudited)-August 31, 1998
- --------------------------------------------------------------------------------
LifePath LifePath
2000 2010
Master Master
Portfolio Portfolio
- --------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments:
In securities, at market value (see cost below)
(Note 1) $ 125,439,921 $ 229,132,659
Cash 449 244
Receivables:
Dividends and interest 805,669 1,492,296
Total Assets 126,246,039 230,625,199
LIABILITIES
Payables:
Collateral for securities loaned (Note 4) 17,905,753 22,253,903
Due to BGI (Note 2) 156,751 303,739
Total Liabilities 18,062,504 22,557,642
TOTAL NET ASSETS $ 108,183,535 $ 208,067,557
INVESTMENTS AT COST $ 122,133,681 $ 211,482,782
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
106
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (Unaudited) - August 31, 1998 LifePath Funds
- ----------------------------------------------------------------------------------------------------------------
LifePath LifePath LifePath
2020 2030 2040
Master Master Master
Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments:
In securities, at market value (see cost below)
(Note 1) $ 348,759,487 $ 248,819,784 $ 432,623,910
Cash 444 931 311
Receivables:
Dividends and interest 1,490,885 753,893 765,668
Total Assets 350,250,816 249,574,608 433,389,889
LIABILITIES
Payables:
Collateral for securities loaned (Note 4) 39,719,302 23,708,395 41,280,462
Due to BGI (Note 2) 473,526 347,775 608,051
Total Liabilities 40,192,828 24,056,170 41,888,513
TOTAL NET ASSETS $ 310,057,988 $ 225,518,438 $ 391,501,376
INVESTMENTS AT COST $ 308,001,088 $ 214,775,867 $ 387,705,145
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
107
<PAGE>
<TABLE>
<CAPTION>
LifePath Funds Statement of Operations - For the Six Months Ended August 31, 1998 (Unaudited)
- ------------------------------------------------------------------------------------------------
LifePath 2000 LifePath 2010
Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 249,711 $ 953,591
Interest+ 2,511,466 3,229,959
Total Investment Income 2,761,177 4,183,550
EXPENSES (NOTE 2)
Advisory Fees 319,895 613,489
Total Expenses 319,895 613,489
NET INVESTMENT INCOME 2,441,282 3,570,061
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain (loss) on sale of investments 2,619,070 4,890,342
Net change in unrealized appreciation
(depreciation) of investments (4,237,744) (13,559,349)
Net Gain (Loss) on Investments (1,618,674) (8,669,007)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 822,608 $ (5,098,946)
- ------------------------------------------------------------------------------------------------
+ Interest income includes security lending income of: $ 11,575 $ 26,103
</TABLE>
The accompanying notes are an integral part of these financial statements.
108
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations - For the Six Months Ended August 31, 1998 (Unaudited) LifePath Funds
- ------------------------------------------------------------------------------------------------------------------------
LifePath 2020 LifePath 2030 LifePath 2040
Master Portfolio Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 2,162,313 $ 1,957,988 $ 3,858,861
Interest+ 3,117,266 1,238,031 183,843
Total Investment Income 5,279,579 3,196,019 4,042,704
EXPENSES (NOTE 2)
Advisory Fees 955,619 705,423 1,242,901
Total Expenses 955,619 705,423 1,242,901
NET INVESTMENT INCOME 4,323,960 2,490,596 2,799,803
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain (loss) on sale of investments 9,274,323 6,605,306 10,647,981
Net change in unrealized appreciation (depreciation) of
investments (30,680,646) (27,034,449) (56,178,376)
Net Gain (Loss) on Investments (21,406,323) (20,429,143) (45,530,395)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (17,082,363) $ (17,938,547) $ (42,730,592)
- ----------------------------------------------------------------------------------------------------------------------------
+ Interest income includes security lending income of: $ 49,272 $ 44,147 $ 81,825
</TABLE>
The accompanying notes are an integral part of these financial statements.
109
<PAGE>
<TABLE>
<CAPTION>
LifePath Funds Statements of Changes in Net Assets
- -----------------------------------------------------------------------------------------
LifePath 2000 Master Portfolio
------------------------------------
(Unaudited)
For the For the
Six Months Ended Year Ended
August 31, 1998 February 28, 1998
- ------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 2,441,282 $ 5,325,967
Net realized gain (loss) on sale of investments 2,619,070 5,800,419
Net change in unrealized appreciation (depreciation)
of investments (4,237,744) 3,089,773
Net increase (decrease) in net assets resulting
from operations 822,608 14,216,159
Net increase (decrease) in net assets resulting
from beneficial interests transactions (8,838,074) (29,290,156)
Increase (decrease) in Net Assets (8,015,466) (15,073,997)
NET ASSETS:
Beginning net assets 116,199,001 131,272,998
Ending net assets $ 108,183,535 $ 116,199,001
- ------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
110
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets LifePath Funds
- --------------------------------------------------------------------------------------------------------------------------------
LifePath 2010 Master Portfolio LifePath 2020 Master Portfolio
----------------------------------- -----------------------------------
(Unaudited) (Unaudited)
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
August 31, 1998 February 28, 1998 August 31, 1998 February 28, 1998
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 3,570,061 $ 6,460,247 $ 4,323,960 $ 7,680,647
Net realized gain (loss) on sale of investments 4,890,342 9,734,287 9,274,323 16,445,704
Net change in unrealized appreciation (depreciation)
of investments (13,559,349) 16,696,571 (30,680,646) 39,706,672
Net increase (decrease) in net assets resulting
from operations (5,098,946) 32,891,105 (17,082,363) 63,833,023
Net increase (decrease) in net assets resulting
from beneficial interests transactions 4,948,804 5,815,674 869,589 10,995,106
Increase (decrease) in Net Assets (150,142) 38,706,779 (16,212,774) 74,828,129
NET ASSETS:
Beginning net assets 208,217,699 169,510,920 326,270,762 251,442,633
Ending net assets $ 208,067,557 $ 208,217,699 $ 310,057,988 $ 326,270,762
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
111
<PAGE>
<TABLE>
<CAPTION>
LifePath Funds Statements of Changes in Net Assets
- -----------------------------------------------------------------------------------------
LifePath 2030 Master Portfolio
-------------------------------------
(Unaudited)
For the For the
Six Months Ended Year Ended
August 31, 1998 February 28, 1998
- -----------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 2,490,596 $ 4,066,385
Net realized gain (loss) on investments 6,605,306 9,255,193
Net realized gain (loss) on sale of futures contracts 0 0
Net change in unrealized appreciation (depreciation)
of investments (27,034,449) 35,383,133
Net change in unrealized appreciation (depreciation)
of futures contracts 0 0
Net increase (decrease) in net assets resulting
from operations (17,938,547) 48,704,711
Net increase (decrease) in net assets resulting
from beneficial interests transactions 9,846,612 26,100,829
Net increase (decrease) in Net Assets (8,091,935) 74,805,540
NET ASSETS:
Beginning net assets 233,610,373 158,804,833
Ending net assets $ 225,518,438 $ 233,610,373
- -----------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
112
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets LifePath Funds
- ------------------------------------------------------------------------------------------------
LifePath 2040 Master Portfolio
-------------------------------------
(Unaudited)
For the For the
Six Months Ended Year Ended
August 31, 1998 February 28, 1998
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 2,799,803 $ 4,675,068
Net realized gain (loss) on investments 10,647,981 26,380,392
Net realized gain (loss) on sale of futures contracts 0 14,539
Net change in unrealized appreciation (depreciation)
of investments (56,178,376) 58,037,494
Net change in unrealized appreciation (depreciation)
of futures contracts 0 (52,500)
Net increase (decrease) in net assets resulting
from operations (42,730,592) 89,054,993
Net increase (decrease) in net assets resulting
from beneficial interests transactions 29,502,861 57,589,386
Net increase (decrease) in Net Assets (13,227,731) 146,644,379
NET ASSETS:
Beginning net assets 404,729,107 258,084,728
Ending net assets $ 391,501,376 $ 404,729,107
- ------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
113
<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 21, 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 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 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 are generally traded in the over-the-counter market and are valued at a
price deemed best to reflect fair value as quoted by dealers who make markets
in those securities or by an independent pricing source. U.S. Government obli-
gations are valued at the last reported bid price. Debt securities maturing in
60
128
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
days or less are valued at amortized cost, which approximates market value. 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.
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 under provisions of the In-
ternal 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 or 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
129
<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, 1998,
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, 1998, the Master Portfolios are
collateralized by U.S. Government Securities.
130
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
2. AGREEMENTS AND OTHER TRANSACTIONS 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 Barclays Global In-
vestors, N.A. ("BGI") for its services as Sub-Administrator of each Master
Portfolio.
Stephens, Inc. ("Stephens") is the co-administrator and placement agent for
the Master Portfolios.
Certain officers and directors of MIP are also officers of Stephens. As of
August 31, 1998, 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, 1998, 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 $17,927,713 $36,440,709 $26,873,341 $ 7,303,772 $ 0
Sales proceeds 21,566,340 32,107,000 23,637,026 3,105,471 0
Other Securities:
- ------------------------------------------------------------------------------
Purchases at cost $ 1,567,744 $ 8,941,861 $16,678,417 $21,183,041 $54,213,803
Sales proceeds 5,566,610 9,242,143 24,992,349 11,901,706 19,130,609
</TABLE>
131
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
4. PORTFOLIO SECURITIES LOANED
As of August 31, 1998, certain Master Portfolios had loaned securities which
were collateralized by cash. 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 $17,697,595 $17,905,753
LifePath 2010 Master Portfolio $21,832,824 $22,253,903
LifePath 2020 Master Portfolio $38,841,359 $39,719,302
LifePath 2030 Master Portfolio $23,083,844 $23,708,395
LifePath 2040 Master Portfolio $39,967,235 $41,280,462
</TABLE>
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, 1998 (Unaudited) 23% 21% 14% 6% 4%
For the Year Ended February
28, 1998 39% 46% 41% 27% 34%
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>
132
<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
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