<PAGE>
STAGECOACH
FUNDS/(R)/
- -------------------
LIFEPATH/TM/
- -------------------
FUNDS
- -------------------
ANNUAL
- -------------------
REPORT
- -------------------
LifePath 2000 Fund/TM/
LifePath 2010 Fund/TM/
LifePath 2020 Fund/TM/
LifePath 2030 Fund/TM/
LifePath 2040 Fund/TM/
Retail Class
February 28, 1998 NOT FDIC INSURED
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders...................................................... 1
Investment Advisor Report................................................... 2
STAGECOACH TRUST
Statement of Assets and Liabilities........................................ 12
Statement of Operations.................................................... 14
Statements of Changes in Net Assets........................................ 16
Financial Highlights....................................................... 20
Notes to the Financial Statements.......................................... 25
Independent Auditors' Report............................................... 32
MASTER INVESTMENT PORTFOLIO
PORTFOLIOS OF INVESTMENTS
LifePath Master Portfolios................................................. 34
MASTER INVESTMENT PORTFOLIO
Statement of Assets and Liabilities........................................ 102
Statement of Operations.................................................... 104
Statements of Changes in Net Assets........................................ 106
Notes to the Financial Statements.......................................... 110
Independent Auditors' Report............................................... 115
</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>
LETTER TO SHAREHOLDERS
TO OUR SHAREHOLDERS:
We are pleased to present you with the 1998 LifePath Funds Annual Report.
The goal of the LifePath Funds is simplicity. You as an investor need only se-
lect a Fund whose title date most closely approximates when you will begin to
withdraw substantial amounts of your investment. That choice gives you a solid
foundation on which to build your investment portfolio.
But behind that simplicity is a comprehensive investment strategy. Each of the
LifePath Funds may invest in up to 17 asset classes, covering a variety of eq-
uity, fixed-income and cash indexes. Included in each Fund's investment options
are three indexes that offer international exposure. Allocations among these
asset classes are determined by an investment model that examines a large
amount of information, including economic trends, pricing and other financial
data. The allocations for each Fund are further refined according to each
Fund's investment horizon, with the later-dated Funds more aggressively posi-
tioned for growth, and the nearer-dated Funds tailored to suit more conserva-
tive investors.
The following pages provide a discussion of the major factors influencing the
return on your LifePath Fund. The discussion provided here is as wide-ranging
as investments it describes. The 17 asset classes available to the Fund encom-
pass a significant portion of the world's economy and wealth. The discussion is
broken into three main portions. The first section provides a general overview
of the economic picture for the reporting period. The second section discusses
the specific responses of and results from the LifePath Funds. Finally, we have
provided performance information for all of the LifePath Funds.
We look forward to continuing to serve your financial goals.
- --Stagecoach Funds February 1998
--------------------
1
<PAGE>
INVESTMENT ADVISOR REPORT
- ---------------------
Investment Advisor Report
U.S. EQUITY MARKET OVERVIEW:
The stock market during the 12-month period ended February 1998 continued its
stellar performance, with the S&P 500 Index posting a total return of 34.99%.
For the calendar year of 1997, the S&P 500 returned 33.36% and the Dow Jones
Industrial Average rose by 22.64%. These 1997 returns mark the first time that
both the Dow and the S&P 500 has achieved 20%-plus returns for three successive
years. As was the case the previous two years, strong economic growth, low in-
flation, and solid earnings growth drove these spectacular returns.
Along with this good news, however, are some questions. Given the market's his-
toric gains over the last three year's, it is no surprise that investors are
uneasy about 1998. Most of 1997's performance occurred in the first seven
months of the year. Starting in August, the market had occasional moderate ral-
lies interrupted by sell-offs. In fact, the largest one-day point drop ever oc-
curred on October 27 in reaction to the crisis in Hong Kong. Between August and
October, the market fell 13.3%, the biggest correction since the bull market
began in 1990. But investors saw October 27 as a buying opportunity and drove
the market up 5.12% the following day.
Valuation measures, such as price-to-earnings ratios, reached historic highs in
1996, exceeded them again in 1997 and have continued at record levels into
1998. But corporate earnings rose by an estimated 13.6% during the period,
beating analysts' expectations and helping to justify the high levels. Though
there are many opinions on the overall outlook for the US equity market, the
consensus is that volatility will continue to be a factor for some time to
come.
Among other significant US equity market trends: Merger and acquisition activ-
ity experienced a third consecutive record year, driving stock prices in the
affected industries higher. The financial services sector is an example, ac-
counting for more than 30% of all US merger activity.
Continuing the trend of the last few years, a small group of large-cap stocks
led the equity market. The S&P 500 Index outperformed both the Extended Market
Index (26.03%) and the Low Capitalization Index (24.02%). The S&P/BARRA Growth
Index, which includes many of the large brand-name companies that dominated the
overall market, outperformed the S&P/BARRA Value Index
- --------------------
2
<PAGE>
INVESTMENT ADVISOR REPORT
36.54% versus 29.70% for the period.
But in the intermediate- and small-cap range, value stocks generally did better
than growth. This disparity, especially during the second half of 1997, was the
result of earnings disappointments among the technology companies that dominate
the intermediate- and small-growth sectors. Merger activity among regional
banks and securities firms, along with a favorable interest rate environment,
helped fuel value stock growth.
The best-performing sectors in the S&P 500 Index were communications services,
telephone, and utilities. The worst performing sectors were technology and ba-
sic materials. Investors clearly continue to expect strong earnings growth and
act accordingly. Stocks failing to meet earnings expectations were severely
punished, such as Oracle Corp., which posted December earnings four cents per
share off estimates, and lost 29% in one day.
US FIXED-INCOME MARKET OVERVIEW:
For the 12-month period ended February 28, 1998, the US bond market benefited
from the economic backdrop of robust growth, low unemployment, and low infla-
tion. As a result, the Lehman Government/Corporate Bond Index returned 10.71%
for the period, similar to the index's average annual compounded return since
its inception in 1976.
Long-term interest rates as of the end of the reporting period are at their
lowest levels since 1977, when the US began regular auctions of 30-year Trea-
sury bonds. In addition, the yield curve has flattened out significantly, with
the three-month Treasury bill rising to a yield of 5.34% and the 30-year Trea-
sury bond declining to a yield of 5.92%. This spread is at its narrowest point
since March of 1990. These lower long-term yields and a flatter curve meant
that long-term bonds outperformed bonds of shorter maturities. While the two-
year Treasury note returned 6.6%, the 30-year Treasury bond had a return of
15.3%.
The Federal Reserve Board adjusted monetary policy only once in 1997, raising
rates 0.25% to 5.50% in March and keeping short-term rates steady. This action
was seen as preemptive, meant to sustain the strongest growth rate possible
while maintaining low inflation.
Declining inflation continues to be favorable for US bonds. The Consumer Price
Index increased only 1.8%, the lowest growth rate since 1986. This seeming par-
adox of low inflation in the midst of strong economic growth and low unemploy-
ment can be partially attributed to higher productivity keeping unit labor
costs under
--------------------
3
<PAGE>
INVESTMENT ADVISOR REPORT
control and easing pressure on employers' profit margins. And while Gross Do-
mestic Product growth has been robust, 1997 saw it trending down from 4.9% to
3.3% to 3.1% in the first three-quarters. The Federal Budget deficit has also
been reduced to 1974 levels due to higher tax receipts resulting from the
strong economy. These factors have all come together to create the most favora-
ble economic landscape in many years.
In the investment grade US bond market, the government, corporate and mortgage-
backed sectors provided returns of 9.59%, 10.23% and 9.49% respectively accord-
ing to Lehman Brothers Indexes, although on a duration-adjusted basis, corpo-
rate bonds underperformed government bonds and mortgage-backed securities actu-
ally had the highest returns. Within the corporate bond market, the worst per-
forming bonds were Yankee (US dollar denominated) bonds from issuers in South
Korea, Thailand, and Indonesia. Heavy debt burdens and dramatic currency deval-
uations resulted in downgraded credit ratings. Within the space of four weeks
between November and December, South Korean bonds fell from a rating of A3/A-
to Ba1/B+. All three countries' bonds are now rated below investment grade.
Looking ahead, the bond market's consensus is that the Asian turmoil should be
beneficial to the US economy in two respects. Fewer US exports to weakened
Asian economies should help decelerate US growth, and weaker Asian currencies
are expected to cause Asian exporters to maintain low prices on goods they sell
to US consumers. These two factors are expected to heighten competition among
US producers and keep inflation low. In fact, possible deflationary pressures
may lead the Fed to ease rates in the near future. The US economy is in a
strong economic position, but with an unfolding Asian crisis and unease about
the future of US stocks, it remains to be seen what 1998 holds for investors.
INTERNATIONAL EQUITY MARKET OVERVIEW:
Judging by the headlines, the overwhelming story in international equities for
1997 was the economic crisis in Asia. But while the stocks and bonds of South-
east Asia suffered significantly, many developed European stock markets actu-
ally hit record highs in 1997 and offset the dismal performance of Asian mar-
kets. Developed non-US equity markets returned 1.78% for the year according to
the Morgan Stanley Capital International Europe/Australasian/Far East Index
(MSCI/EAFE).
Emerging markets fared poorly, posting a decline of 14.85% for 1997 according
to the IFC Investable Composite Total Return
- --------------------
4
<PAGE>
INVESTMENT ADVISOR REPORT
Index. Top performers in this group include Turkey, Russia, Hungary, Mexico,
Portugal, and Greece, while worst performers include Thailand, Indonesia, Ma-
laysia, Korea, and the Philippines.
Driven by plunging currencies, slowing economies, and overwhelming debt, the
Asian economic crisis was most manifested in the returns of these five emerging
Asian countries, but Japan was certainly not immune to the Asian "flu." With
decreased exports as well as an anemic domestic demand resulting from April's
increased sales tax, Japan's equity market dropped 23.67% for the year. Coupled
with a 12% annual gain of the dollar against the yen at Y130.03, the Japanese
economy weakened. Several major Japanese financial institutions closed, includ-
ing Yamaichi, Japan's fourth-largest brokerage firm.
Developed European markets posted positive returns in 1997 of 23.8% according
to the MSCI/EAFE Index, with strongest performances coming from Switzerland,
Italy and Denmark. With the approach of the European Monetary Union, many Euro-
pean countries have trimmed budgets and taken other actions in order to comply
with Maastricht guidelines, in an attempt to strengthen their economies. The UK
also turned in a strong performance, reacting favorably to the newly-elected
Labour government's decision to allow the Bank of England to set monetary poli-
cy. Germany's high returns were driven by signs of economic growth and in-
creased export earnings due to a weaker deutschemark. The first new addition to
MSCI/EAFE, since Ireland in 1993 occurred in 1997 as Portugal was reclassified
as a developed market in anticipation of its participation in next year's Euro-
pean Monetary Union. Portugal's equity market gained 47.77%
The IFCI Europe/Middle East/Africa region delivered a healthy 12.43% gain on
equity for the year, with Turkey returning a phenomenal 117.08%, making it the
world's top-performing country, both according to Morgan Stanley. Russia, added
to the IFCI Composite Index in November, gained 112.15% due to economic reforms
and the sale of state-owned assets. Israel, added to the Index last year,
gained 24.25%. Strong earnings growth gave Hungary a return of 61.81%, and
Greece finished at 37.73% despite a negative final quarter.
IFCI Latin America gained 29.27% for the year, even though Latin American mar-
kets were down for the final quarter. Mexico led the region with an impressive
gain of 51.58% as investors reacted to an improving export picture. Columbia
and Venezuela returned 34.45% and 27.19%, respectively. Brazil started the year
out strong
--------------------
5
<PAGE>
INVESTMENT ADVISOR REPORT
but lost some ground in the second half of the year due to concerns over the
strength of its currency. However, Brazil still gained 25.79% on the year. The
MSCI All-Country World Index (ACWI) Free ex-US, an international benchmark in-
tegrating developed and emerging equity markets, returned 21.51% in 1997,
outperforming both the EAFE and the IFCI Composite indices.
THE LIFEPATH FUNDS OVERVIEW
ONE YEAR RETURNS:
The returns for Class A shares for the reporting period, March 1, 1997 through
February 28, 1998, were as follows:
<TABLE>
<CAPTION>
1 YEAR
------
<S> <C>
LifePath 2000............................................................ 11.99%
LifePath 2010............................................................ 18.45%
LifePath 2020............................................................ 23.97%
LifePath 2030............................................................ 28.01%
LifePath 2040............................................................ 30.66%
</TABLE>
These returns are exclusive of sales load. Please see the "Performance at a
Glance" table for more information.
STRATEGIC ALLOCATION:
The LifePath Funds employ both strategic and tactical asset allocation tech-
niques when investing assets in their portfolios. Of the total allocation, 75%
is strategic in nature, and focuses on the Funds' long-term investment alloca-
tion. The strategic allocation is determined by the tradeoff between expected
returns and risks for each asset class 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 continu-
ous, long-term process resulting in only minor monthly changes to the asset al-
location. Forty years from now, the strategic allocation of LifePath 2040 Fund
will look very similar to the strategic allocation of today's LifePath 2000
Fund.
TACTICAL ALLOCATION:
Tactical allocation techniques make up the remaining 25% of each Fund's alloca-
tion. Tactical allocation 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 allocation of shifting from long duration bonds to
short duration bonds and cash plays a larger role in the LifePath 2000 Fund
than in the other Funds. The LifePath 2040 Fund, for example, makes more use of
the second, and more aggressive, type of tactical allocation which shifts as-
sets between stocks, bonds and cash.
- --------------------
6
<PAGE>
INVESTMENT ADVISOR REPORT
ALLOCATION SHIFTS:
The investment allocations of the Funds at March 1, 1997 were the following:
<TABLE>
<CAPTION>
INTER-
US NATIONAL MONEY
FUND EQUITY EQUITY BONDS MARKET
- ---- ------ -------- ----- ------
<S> <C> <C> <C> <C>
LifePath 2000 14% 7% 75% 4%
LifePath 2010 35% 11% 51% 3%
LifePath 2020 48% 15% 35% 2%
LifePath 2030 58% 18% 23% 1%
LifePath 2040 70% 19% 10% 1%
</TABLE>
(For breakdowns within these broad asset classes, please see each Fund's port-
folio of investments.)
In a period of strong equity returns, the Funds performed as expected. The
higher-risk, equity-dominated Funds had higher returns than the Funds nearer
their target dates. Nonetheless, the bond rally during the latter half of 1997
provided the shorter-term Funds with strong positive returns.
Tactically, the Funds began the period underweighted to equities, relative to
bonds, after 1996 saw stocks outperform bonds by 24%. As the bond market ral-
lied and yields fell in 1997, the Funds made tactical shifts to increase the
equity exposure, which was becoming increasingly attractive on a relative ba-
sis. Similarly, the long bond yields fell from 6.7% to 5.8%.
Therefore, cash and short-duration fixed income instruments became more attrac-
tive than the long-duration bonds as the spread between bond and cash yields
tightened. The net result of these effects was an increase in the equity expo-
sure, and a move from long-duration bonds to short-duration bonds and money
market instruments. By the end of the reporting period, the Funds' allocations
were the following:
<TABLE>
<CAPTION>
INTER-
US NATIONAL MONEY
FUND EQUITY EQUITY BONDS MARKET
- ---- ------ -------- ----- ------
<S> <C> <C> <C> <C>
LifePath 2000 19% 5% 51% 25%
LifePath 2010 38% 10% 42% 10%
LifePath 2020 55% 15% 25% 5%
LifePath 2030 66% 19% 12% 3%
LifePath 2040 80% 20% 0% 0%
</TABLE>
--------------------
7
<PAGE>
INVESTMENT ADVISOR REPORT
ASIAN CRISIS:
A significant event in 1997 was the Southeast Asian currency crisis, which
caused large losses in the Pan-Asian markets. However, this event had little
effect on the LifePath Funds. Though the international exposure is as much as
20% for all Funds of the entire allocation, there are only minor investments in
South-East Asia. In fact, as the Pan-Asian markets tumbled in the last three
months of 1997, the LifePath Funds all posted positive returns because of high
exposure to the strong US Equity market.
- --------------------------------------------------------------------------------
The S&P 500 Index is an unmanaged index of 500 widely held
common stocks representing, among others, industrial, fi-
nancial, utility and transportation companies listed or
traded on national exchanges or over-the-counter markets.
The S&P BARRA Growth, Value, Extended Market and Low Capi-
talization Indexes are also unmanaged Indexes of widely
held common stocks that meet the characteristics described
in the title. The Lehman Brothers Corporate-Government Bond
Index is an unmanaged index composed of U.S. Treasury bonds
with 10-year or longer maturities and investment grade cor-
porate bonds. The Lehman Brothers U.S. 20-Year Treasury
Bond Index is an unmanaged index composed of U.S. Treasury
bonds with 20-year or longer maturities. The Lehman Broth-
ers Mortgage Bond Index is an unmanaged index composed of
mortgage-backed bonds. The MSCI/EAFE is an unmanaged index
of stocks.
- --------------------
8
<PAGE>
INVESTMENT ADVISOR REPORT
PERFORMANCE AT A GLANCE
PERFORMANCE AS OF 2/28/98 AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
- ----------------------------------------------------------------------------
<CAPTION>
Since
3/1/94
Class A Share 1 Year 3 Year Inception
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
WITH MAXIMUM 4.5% SALES CHARGE
LifePath 2000 n/a n/a n/a
LifePath 2010 13.12% 15.06% 11.88%
LifePath 2020 18.39% 18.61% 14.82%
LifePath 2030 22.26% 21.86% 17.14%
LifePath 2040 24.81% 24.56% 19.43%
WITHOUT SALES CHARGE
LifePath 2000 11.99% 10.60% 8.36%
LifePath 2010 18.45% 16.43% 13.00%
LifePath 2020 23.97% 20.45% 16.14%
LifePath 2030 28.01% 23.75% 18.50%
LifePath 2040 30.66% 26.50% 20.82%
- ----------------------------------------------------------------------------
<CAPTION>
Since
3/1/94
Class B Share 1 Year 3 Year Inception
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
WITH MAXIMUM CONTINGENT DEFERRED SALES CHARGE(/1/)
LifePath 2010 12.64% 15.06% 11.88%
LifePath 2020 18.05% 19.07% 15.02%
LifePath 2030 21.93% 22.36% 17.34%
LifePath 2040 24.47% 25.07% 19.67%
WITHOUT CONTINGENT DEFERRED SALES CHARGE
LifePath 2010 17.64% 15.81% 12.41%
LifePath 2020 23.05% 19.77% 15.51%
LifePath 2030 26.93% 23.02% 17.83%
LifePath 2040 29.47% 25.71% 20.11%
- ----------------------------------------------------------------------------
</TABLE>
(1) Assumes redemption on 2/28/98.
Past performance is not predictive of future results. The investment return and
net asset value of shares of each Fund will fluctuate with market conditions so
that shares of the Fund, when redeemed, may have a greater or lesser net asset
value than when originally purchased.
Average annual total returns for the indicated periods represent the average
annual increase in the value of an investment over the periods assuming rein-
vestment of dividends and capital gains distributions at net asset value.
The Funds are feeder funds that invest in a master portfolio of the Master
Investment Portfolio which in turn buys the individual securities. References
to the Fund are understood to be references to the Fund or Master Portfolio as
appropriate.
For the periods prior to March 1997 performance shown for the Stagecoach
LifePath Funds Class B shares reflects the performance of the respective
LifePath Funds Class A share and has been adjusted to reflect the expenses of
Class B share.
--------------------
9
<PAGE>
INVESTMENT ADVISOR REPORT
GROWTH OF A $10,000 INVESTMENT
[GRAPH APPEARS HERE]
STAGECOACH - LIFEPATH 2000 Class A Shares
<TABLE>
<CAPTION>
LIPPER BALANCED S&P 500 INDEX LIFEPATH 2000
--------------------------------------------------
<S> <C> <C> <C>
10,000.00 10,000.00 10,000
MAR-94 9,637.00 9,564.00 9,855
JUN-94 9,563.76 9,604.17 9,765
SEP-94 9,843.98 10,073.81 9,878
DEC-94 9,736.68 10,071.80 9,825
MAR-95 10,324.77 11,052.79 10,330
JUN-95 11,047.51 12,108.33 10,881
SEP-95 11,640.76 13,070.94 11,180
DEC-95 12,161.10 13,857.82 11,533
MAR-96 12,433.51 14,601.98 11,565
JUN-96 12,685.91 15,257.61 11,674
SEP-96 13,018.28 15,729.07 11,891
DEC-96 13,743.40 17,040.87 12,263
MAR-97 13,803.87 17,497.57 12,246
JUN-97 15,282.26 20,552.65 12,925
SEP-97 16,263.38 22,092.04 13,375
DEC-97 16,499.20 22,726.08 13,577
FEB-98 17,274.67 24,635.07 13,926
</TABLE>
[GRAPH APPEARS HERE]
STAGECOACH - LIFEPATH 2010 Class A Shares
<TABLE>
<CAPTION>
LIPPER BALANCED S&P 500 INDEX LIFEPATH 2010
--------------------------------------------------
<S> <C> <C> <C>
10,000.00 10,000.00 10,000
MAR-94 9,637.00 9,564.00 9,838
JUN-94 9,563.76 9,604.17 9,760
SEP-94 9,843.98 10,073.81 9,900
DEC-94 9,736.68 10,071.80 9,847
MAR-95 10,324.77 11,052.79 10,520
JUN-95 11,047.51 12,108.33 11,257
SEP-95 11,640.76 13,070.94 11,738
DEC-95 12,161.10 13,857.82 12,209
MAR-96 12,443.51 14,601.98 12,424
JUN-96 12,685.91 15,257.61 12,668
SEP-96 13,018.28 15,729.07 12,928
DEC-96 13,743.40 17,040.87 13,520
MAR-97 13,803.87 17,497.57 13,602
JUN-97 15,282.26 20,552.65 14,879
SEP-97 16,263.38 22,092.04 15,528
DEC-97 16,499.20 22,726.08 15,765
FEB-98 17,274.67 24,635.07 16,476
</TABLE>
[GRAPH APPEARS HERE]
STAGECOACH - LIFEPATH 2020 Class A Shares
<TABLE>
<CAPTION>
LIPPER BALANCED S&P 500 INDEX LIFEPATH 2020
--------------------------------------------------
<S> <C> <C> <C>
10,000.00 10,000.00 10,000
MAR-94 9,637.00 9,564.00 9,810
JUN-94 9,563.76 9,604.17 9,752
SEP-94 9,843.98 10,073.81 9,916
DEC-94 9,736.68 10,071.80 9,874
MAR-95 10,324.77 11,052.79 10,636
JUN-95 11,047.51 12,108.33 11,472
SEP-95 11,640.76 13,070.94 12,057
DEC-95 12,161.10 13,857.82 12,590
MAR-96 12,433.51 14,601.98 12,909
JUN-96 12,685.91 15,257.61 13,234
SEP-96 13,018.28 15,729.07 13,521
DEC-96 13,743.40 17,040.87 14,298
MAR-97 13,803.87 17,497.57 14,408
JUN-97 15,282.26 20,552.65 16,167
SEP-97 16,263.38 22,092.04 17,056
DEC-97 16,499.20 22,726.08 17,331
FEB-98 17,274.67 24,635.07 18,383
</TABLE>
- --------------------
10
<PAGE>
INVESTMENT ADVISOR REPORT
[GRAPH APPEARS HERE]
STAGECOACH - LIFEPATH 2030 Class A Shares
<TABLE>
<CAPTION>
LIPPER BALANCED S&P 500 INDEX LIFEPATH 2030
--------------------------------------------------
<S> <C> <C> <C>
10,000.00 10,000.00 10,000
MAR-94 9,637.00 9,564.00 9,711
JUN-94 9,563.76 9,604.17 9,610
SEP-94 9,843.98 10,073.81 9,878
DEC-94 9,736.68 10,071.80 9,857
MAR-95 10,324.77 11,052.79 10,682
JUN-95 11,047.51 12,108.33 11,637
SEP-95 11,640.76 13,070.94 12,300
DEC-95 12,161.10 13,857.82 12,928
MAR-96 12,433.51 14,601.98 13,305
JUN-96 12,685.91 15,257.61 13,710
SEP-96 13,018.28 15,729.07 14,025
DEC-96 13,743.40 17,040.87 14,946
MAR-97 13,803.87 17,497.57 15,080
JUN-97 15,282.26 20,552.65 17,220
SEP-97 16,263.38 22,092.04 18,284
DEC-97 16,499.20 22,726.08 18,608
FEB-98 17,274.67 24,635.07 19,938
</TABLE>
[GRAPH APPEARS HERE]
STAGECOACH - LIFEPATH 2040 Class A Shares
<TABLE>
<CAPTION>
LIPPER BALANCED S&P 500 INDEX LIFEPATH 2040
--------------------------------------------------
<S> <C> <C> <C>
10,000.00 10,000.00 10,000
MAR-94 9,637.00 9,564.00 9,652
JUN-94 9,563.76 9,604.17 9,621
SEP-94 9,843.98 10,073.81 9,977
DEC-94 9,736.68 10,071.80 9,955
MAR-95 10,324.77 11,052.79 10,829
JUN-95 11,047.51 12,108.33 11,799
SEP-95 11,640.76 13,070.94 12,564
DEC-95 12,161.10 13,857.82 13,194
MAR-96 12,433.51 14,601.98 13,739
JUN-96 12,685.91 15,257.61 14,287
SEP-96 13,018.28 15,729.07 14,640
DEC-96 13,743.40 17,040.87 15,655
MAR-97 13,803.87 17,497.57 15,892
JUN-97 15,282.26 20,552.65 18,472
SEP-97 16,263.38 22,092.04 19,645
DEC-97 16,499.20 22,726.08 19,859
FEB-98 17,274.67 24,635.07 21,534
</TABLE>
LIFEPATH FUNDS
"GROWTH OF A $10,000 INVESTMENT" GRAPH
The returns for Class B shares of the LifePath Funds, where applicable, will
vary from the results shown due to different expenses and load structures.
The accompanying charts compare the performance of each of the Stagecoach
LifePath Funds Class A shares since inception with the S&P 500 Index and the
Lehman Brothers Aggregate Bond Index. The chart assumes a hypothetical $10,000
initial investment in Class A shares and reflects all operating expenses and
assumes the maximum initial sales charge of 4.5%. The S&P 500 Index is an un-
managed index of 500 widely held common stocks representing, among others, in-
dustrial, financial, utility and transportation companies listed or traded on
national exchanges or over-the-counter markets. The Lehman Brothers Aggregate
Bond Index is an unmanaged index composed of bonds, mortgage-backed securities
and asset-backed securities. The indexes presented here do not incur expenses
and are not available directly for investment. Had these indexes incurred oper-
ating expenses, their performances would have been lower.
--------------------
11
<PAGE>
STATEMENT OF ASSETS & LIABILITIES FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
- --------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In corresponding Master Portfolio, at market value
(Note 1) $ 67,475,575 $ 95,919,298
RECEIVABLES:
Receivable from WFB (Note 2) 3,103 14,995
Fund shares sold 540,515 58,754
TOTAL ASSETS 68,019,193 95,993,047
LIABILITIES
PAYABLES:
Due to sponsor and distributor 23,317 31,619
Due to WFB (Note 2) 0 0
Capital shares redeemed 72,703 24,733
TOTAL LIABILITIES 96,020 56,352
TOTAL NET ASSETS $ 67,923,173 $ 95,936,695
NET ASSETS CONSIST OF:
Paid-in capital $ 61,109,961 $ 76,886,504
Undistributed net investment income 385,462 385,671
Undistributed net realized gain on investment 1,521,282 1,797,016
Net unrealized appreciation (depreciation) of
investments 4,906,468 16,867,504
TOTAL NET ASSETS $ 67,923,173 $ 95,936,695
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER
SHARE
Net Assets - Class A $ 67,909,225 $ 89,658,807
Shares outstanding - Class A 6,271,099 6,815,464
Net asset value and offering price per share - Class
A $ 10.83 $ 13.16
Net Assets - Class B $ 0 $ 6,248,402
Shares outstanding - Class B 0 476,916
Net asset value and offering price per share - Class
B $ 0 $ 13.10
Net Assets - Institutional class $ 13,948 $ 29,486
Shares outstanding - Institutional class 1,355 2,526
Net asset value and offering price per share -
Institutional class $ 10.29 $ 11.67
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------
12
<PAGE>
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- --------------------------------------------------------------------
<S> <C> <C>
$ 178,266,021 $ 138,450,504 $ 278,684,298
4,135 0 0
413,671 364,114 694,661
178,683,827 138,814,618 279,378,959
46,186 38,024 65,508
0 3,311 43,800
224,650 126,262 293,835
270,836 167,597 403,143
$ 178,412,991 $ 138,647,021 $ 278,975,816
$ 129,742,850 $ 94,588,778 $ 198,516,273
444,443 209,406 124,405
3,631,348 2,325,866 4,263,946
44,594,350 41,522,971 76,071,192
$ 178,412,991 $ 138,647,021 $ 278,975,816
$ 166,198,003 $ 126,130,682 $ 248,195,091
11,304,269 7,641,679 14,537,252
$ 14.70 $ 16.51 $ 17.07
$ 12,129,385 $ 12,469,207 $ 30,753,993
883,660 766,089 1,834,957
$ 14.55 $ 16.28 $ 16.76
$ 85,603 $ 47,132 $ 26,732
6,180 2,929 1,635
$ 13.85 $ 16.09 $ 16.35
- --------------------------------------------------------------------
</TABLE>
--------------------
13
<PAGE>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
- ----------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME ALLOCATED FROM MASTER
PORTFOLIO
Dividends $ 290,356 $ 735,016
Interest 3,390,560 2,816,848
Expenses (403,248) (483,532)
NET INVESTMENT INCOME ALLOCATED FROM MASTER
PORTFOLIO 3,277,668 3,068,332
EXPENSES (NOTE 2)
Administration fee 73,243 87,886
Shareholder servicing fees 146,486 175,771
Transfer agency fees 73,243 87,886
Distribution costs - Class A 183,075 213,875
Distribution costs - Class B 0 17,269
TOTAL EXPENSES 476,047 582,687
NET INVESTMENT INCOME 2,801,621 2,485,645
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ALLOCATED FROM MASTER PORTFOLIO
Net realized gain (loss) on sale of investments 4,301,793 5,714,054
NET REALIZED GAIN (LOSS) ON INVESTMENTS 4,301,793 5,714,054
CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER SERIES
Net change in unrealized appreciation
(depreciation) of investments 1,145,265 6,828,482
CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,145,265 6,828,482
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 8,248,679 $ 15,028,181
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------
14
<PAGE>
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- ----------------------------------------------------
<S> <C> <C>
$ 1,878,044 $ 1,655,151 $ 3,640,493
3,308,436 1,497,067 944,620
(880,206) (644,467) (1,253,906)
4,306,274 2,507,751 3,331,207
160,021 117,214 227,985
320,043 234,428 455,970
160,021 117,214 227,985
387,413 280,561 540,814
37,350 37,091 87,274
1,064,848 786,508 1,540,028
3,241,426 1,721,243 1,791,179
10,898,128 6,664,486 20,942,146
10,898,128 6,664,486 20,942,146
20,358,807 20,833,854 39,110,252
20,358,807 20,833,854 39,110,252
$ 34,498,361 $ 29,219,583 $ 61,843,577
- ----------------------------------------------------
</TABLE>
--------------------
15
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2000 Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 2,801,621 $ 3,636,851
Net realized gain (loss) on sale of
investments 4,301,793 2,732,074
Net change in unrealized appreciation
(depreciation) of investments 1,145,265 (959,715)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 8,248,679 5,409,210
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (2,974,734) (3,756,712)
Class B 0 0
Institutional class 0 (570)
From net realized gain from sale of
investments
Class A (4,075,304) (1,721,568)
Class B 0 0
Institutional class (862) (48,077)
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold - Class A 11,675,990 37,948,187
Reinvestment of dividends - Class A 6,867,295 5,135,618
Cost of shares redeemed - Class A (36,779,860) (58,589,767)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (18,236,575) (15,505,962)
Proceeds from shares sold - Class B 0 0
Reinvestment of dividends - Class B 0 0
Cost of shares redeemed - Class B 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 0 0
Proceeds from shares sold -
Institutional class 0 1,267,997
Reinvestment of dividends -
Institutional class 862 208,022
Cost of shares redeemed - Institutional
class 0 (18,222,796)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 862 (16,746,777)
INCREASE (DECREASE) IN NET ASSETS (17,037,934) (32,370,456)
NET ASSETS:
Beginning net assets 84,961,107 117,331,563
ENDING NET ASSETS $ 67,923,173 $ 84,961,107
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------
16
<PAGE>
<TABLE>
<CAPTION>
LifePath 2010 Fund LifePath 2020 Fund
- ------------------------------------ ------------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
February 28, 1998 February 28, 1997 February 28, 1998 February 28, 1997
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
$ 2,485,645 $ 2,438,078 $ 3,241,426 $ 3,165,347
5,714,054 2,784,852 10,898,128 8,285,130
6,828,482 704,734 20,358,807 3,932,094
15,028,181 5,927,664 34,498,361 15,382,571
(2,575,007) (2,393,878) (3,252,950) (3,234,978)
(31,698) 0 (47,199) 0
(1,221) (1,673) (1,772) (1,862)
(5,401,825) (999,794) (10,821,255) (4,457,911)
(261,495) 0 (555,904) 0
(1,957) (138,908) (5,732) (97,440)
15,777,443 34,070,450 28,343,707 52,706,149
7,917,812 3,206,892 13,987,631 3,353,041
(23,646,888) (26,504,856) (41,621,895) (43,292,145)
48,367 10,772,486 709,443 12,767,045
6,169,331 0 11,509,114 0
288,508 0 588,214 0
(321,968) 0 (509,483) 0
6,135,871 0 11,587,845 0
2 2,529,219 0 1,484,241
3,178 289,983 7,501 349,700
(24,970) (34,601,841) (90) (38,954,344)
(21,790) (31,782,639) 7,411 (37,120,403)
12,917,426 (18,616,742) 32,118,248 (16,762,978)
83,019,269 101,636,011 146,294,743 163,057,721
$ 95,936,695 $ 83,019,269 $ 178,412,991 $ 146,294,743
- ---------------------------------------------------------------------------
</TABLE>
--------------------
17
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2030 Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 1,721,243 $ 1,657,635
Net realized gain (loss) on sale of
investments 6,664,486 4,461,859
Net change in unrealized appreciation
(depreciation) of investments 20,833,854 5,090,075
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 29,219,583 11,209,569
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (1,721,740) (1,710,475)
Class B (28,281) 0
Institutional class (1,108) (5,645)
From net realized gain from sale of
investments
Class A (6,317,229) (2,265,932)
Class B (448,302) 0
Institutional class (2,388) (61,335)
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold - Class A 20,334,470 30,971,697
Reinvestment of dividends - Class A 7,987,742 3,826,842
Cost of shares redeemed - Class A (23,153,085) (27,148,781)
NET INCREASE (DECREASE) IN NET SHARES
OUTSTANDING -CLASS A 5,169,127 7,649,758
Proceeds from shares sold - Class B 11,536,495 0
Reinvestment of dividends - Class B 473,399 0
Cost of shares redeemed - Class B (351,165) 0
NET INCREASE (DECREASE) IN NET SHARES
OUTSTANDING - CLASS B 11,658,729 0
Proceeds from shares sold -
Institutional class 0 1,939,792
Reinvestment of dividends -
Institutional class 3,494 188,977
Cost of shares redeemed - Institutional
class (4,321) (24,283,479)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (827) (22,154,710)
INCREASE (DECREASE) IN NET ASSETS 37,527,564 (7,338,770)
NET ASSETS:
Beginning net assets 101,119,457 108,458,227
ENDING NET ASSETS $ 138,647,021 $ 101,119,457
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------
18
<PAGE>
<TABLE>
<CAPTION>
LifePath 2040 Fund
- ----------------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ----------------------------------------------
<S> <C>
$ 1,791,179 $ 2,019,898
20,942,146 13,884,725
39,110,252 11,621,464
61,843,577 27,526,087
(1,930,509) (2,045,803)
(14,585) 0
(263) (338)
(21,055,603) (7,609,699)
(1,893,805) 0
(2,348) (797,501)
53,851,530 76,803,382
22,961,611 2,589,866
(53,765,333) (52,840,894)
23,047,808 26,552,354
28,753,908 0
1,908,390 0
(1,263,288) 0
29,399,010 0
0 1,917,732
2,609 248,730
0 (32,335,375)
2,609 (30,168,913)
89,395,891 13,456,187
189,579,925 176,123,738
$ 278,975,816 $ 189,579,925
- ----------------------------------------------
</TABLE>
--------------------
19
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2000 Fund
-----------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1998 Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
---------------------- ---------------------- ----------------------- ----------------------
Class Institutional Class Institutional Class Institutional Class Institutional
A Class A Class A Class A Class
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.71 $ 9.79 $ 10.64 $ 10.67 $ 9.92 $ 9.94 $ 10.00 $ 10.00
------- ------------- ------- ------------- -------- ------------- ------- -------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.43 0.39 0.42 1.29 0.40 0.42 0.34 0.35
Net realized and
unrealized gain (loss)
on investments 0.81 0.79 0.28 (0.60) 0.86 0.86 (0.14) (0.12)
------- ------------- ------- ------------- -------- ------------- ------- -------------
TOTAL FROM INVESTMENT
OPERATIONS 1.24 1.18 0.70 0.69 1.26 1.28 0.20 0.23
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.44) 0.00 (0.42) (1.36) (0.41) (0.42) (0.27) (0.28)
Distributions from net
realized capital gains (0.68) (0.68) (0.21) (0.21) (0.13) (0.13) (0.01) (0.01)
------- ------------- ------- ------------- -------- ------------- ------- -------------
TOTAL FROM DISTRIBUTIONS (1.12) (0.68) (0.63) (1.57) (0.54) (0.55) (0.28) (0.29)
------- ------------- ------- ------------- -------- ------------- ------- -------------
NET ASSET VALUE, END OF
PERIOD $ 10.83 $ 10.29 $ 10.71 $ 9.79 $ 10.64 $ 10.67 $ 9.92 $ 9.94
======= ============= ======= ============= ======== ============= ======= =============
TOTAL RETURN 11.99% 12.25% 6.74% 7.23% 12.98% 13.19% 2.10% 2.38%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000) $67,909 $ 14 $84,949 $ 12 $100,070 $17,262 $54,617 $ 7,499
Number of shares
outstanding, end of
period (000) 6,272 1 7,934 1 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% 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% 4.00% 4.23% 4.62% 4.89%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
- --------------------
20
<PAGE>
<TABLE>
<CAPTION>
LifePath 2010 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>
$ 12.20 $ 12.02 $ 10.94 $ 11.42 $ 11.47 $ 9.99 $ 10.02 $ 10.00 $ 10.00
- ------- ------- ------------- ------- ------------- ------- ------------- ------- -------------
0.36 0.19 0.38 0.34 1.57 0.32 0.34 0.34 0.33
1.82 1.88 1.59 0.95 (0.36) 1.58 1.60 (0.02) 0.01
- ------- ------- ------------- ------- ------------- ------- ------------- ------- -------------
2.18 2.07 1.97 1.29 1.21 1.90 1.94 0.32 0.34
(0.38) (0.15) (0.40) (0.34) (1.57) (0.33) (0.35) (0.28) (0.27)
(0.84) (0.84) (0.84) (0.17) (0.17) (0.14) (0.14) (0.05) (0.05)
- ------- ------- ------------- ------- ------------- ------- ------------- ------- -------------
(1.22) (0.99) (1.24) (0.51) (1.74) (0.47) (0.49) (0.33) (0.32)
- ------- ------- ------------- ------- ------------- ------- ------------- ------- -------------
$ 13.16 $ 13.10 $ 11.67 $ 12.20 $ 10.94 $ 11.42 $ 11.47 $ 9.99 $ 10.02
======= ======= ============= ======= ============= ======= ============= ======= =============
18.45% 17.64% 18.75% 11.60 % 11.89% 19.40% 19.69% 3.31% 3.53%
$89,659 $ 6,248 $ 29 $82,971 $ 49 $67,178 $34,458 $36,764 $13,028
6,815 477 3 6,801 4 5,883 3,004 3,679 1,300
1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
2.85% 2.15% 3.14% 3.16% 3.41% 3.06% 3.27% 4.40% 4.61%
- --------------------------------------------------------------------------------------------------------
</TABLE>
--------------------
21
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2020 Fund
------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1998 Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
------------------------------ ------------------- ------------------ -----------------
Institu- Institu- Institu- Institu-
Class Class tional Class tional Class tional Class tional
A B Class A Class A Class A Class
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.98 $ 12.79 $ 12.28 $ 11.98 $ 11.98 $ 10.17 $ 10.17 $ 10.00 $ 10.00
-------- --------- --------- -------- --------- -------- -------- ------- --------
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%
- ----------------------------------------------------------------------------------------------------------------------
</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>
LifePath 2030 Fund
- -------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1998 Feb. 28, 1997 Feb. 29, 1996 Feb 28, 1995
- ------------------------------ ------------------- ------------------ ------------------
Institu- Institu- Institu- Institu-
Class Class tional Class tional Class tional Class tional
A B Class A Class A Class A Class
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.83 $ 13.63 $ 13.70 $ 12.34 $ 12.37 $ 10.17 $ 10.18 $ 10.00 $ 10.00
- -------- --------- --------- -------- --------- -------- -------- ------- ---------
0.23 0.10 0.26 0.22 0.49 0.21 0.23 0.26 0.29
3.54 3.50 3.37 1.83 1.66 2.45 2.47 0.13 0.14
- -------- --------- --------- -------- --------- -------- -------- ------- ---------
3.77 3.60 3.63 2.05 2.15 2.66 2.70 0.39 0.43
(0.23) (0.09) (0.38) (0.23) (0.49) (0.22) (0.24) (0.22) (0.25)
(0.86) (0.86) (0.86) (0.33) (0.33) (0.27) (0.27) 0.00 0.00
- -------- --------- --------- -------- --------- -------- -------- ------- ---------
(1.09) (0.95) (1.24) (0.56) (0.82) (0.49) (0.51) (0.22) (0.25)
- -------- --------- --------- -------- --------- -------- -------- ------- ---------
$ 16.51 $ 16.28 $ 16.09 $ 13.83 $ 13.70 $ 12.34 $ 12.37 $ 10.17 $ 10.18
======== ========= ========= ======== ========= ======== ======== ======= =========
28.01% 26.93% 27.48% 17.01% 18.13% 26.53% 26.88% 4.03% 4.42%
$126,131 $12,469 $ 47 $101,078 $ 41 $83,012 $25,447 $41,153 $ 9,682
7,642 766 3 7,307 3 6,728 2,058 4,045 951
1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
1.50% 0.76% 1.74% 1.81% 2.06% 1.92% 2.15% 3.35% 3.59%
- --------------------------------------------------------------------------------------------
</TABLE>
--------------------
23
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
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%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these Financial Statements.
- --------------------
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
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 separate funds, which commenced operations on March 1, 1994: LifePath
2000, LifePath 2010, LifePath 2020, LifePath 2030 and LifePath 2040 Funds
(each, a "Fund," collectively, the "Funds"). The following significant account-
ing policies are consistently followed by the Trust in the preparation of its
financial statements, and such policies are in conformity with generally ac-
cepted 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.
Each Fund is authorized to issue three classes of shares: Class A, Class B and
an Institutional Class. On March 1, 1997, the Retail Class' name was changed to
Class A and the Fund commenced offering Class B shares. The three classes of
shares differ principally in their respective distribution fees. Shareholders
of each class bear certain expenses that pertain to that particular class. All
shareholders bear the common expenses of the Fund and earn income from the
portfolio, pro rata based on the average daily net assets of each class. Divi-
dends are determined separately for each class based on income and expenses al-
locable 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 prefer-
ential dividend rights; differences in per share dividend rates are generally
due to differences in separate class expenses, including distribution fees and
from the weightings of pro rata income and gain allocations.
INVESTMENT POLICY AND SECURITY VALUATION
Each Fund invests all of its assets in a separate series (each, a
--------------------
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS
"Master Portfolio") of Master Investment Portfolio ("MIP"). Each Master Port-
folio has the same investment objective as the Fund bearing the corresponding
name. The value of each Fund's investment in its corresponding Master Portfo-
lio reflects that Fund's interest in the net assets of that Master Portfolio
(58.07%, 46.07%, 54.64%, 59.27%, and 68.86%) for the LifePath 2000, LifePath
2010, LifePath 2020, LifePath 2030 and LifePath 2040 Funds, respectively, at
February 28, 1998. The Master Portfolios invest in a wide range of U.S. and
foreign equity, debt securities and money market instruments. Each Master
Portfolio 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 Portfolios are valued at the last reported sale price on the primary
securities exchange or national securities market on which such securities are
traded. Securities not listed on an exchange or 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 dealers 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 securities and money market instruments maturing in 60 days or
less are valued at amortized cost, which approximates market value. Any secu-
rities, 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-div-
idend date, and interest income is recognized on a daily accrual basis. Real-
ized gains or losses are reported on the basis of identified cost of securi-
ties delivered. Bond discounts and premiums are amortized as required by the
Internal Revenue Code of 1986, as amended (the "Code"). All net investment in-
come and realized and unrealized capital gains and losses of each Master Port-
folio are allocated as required by the Code.
The performance of each Fund is directly affected by the performance of its
corresponding Master
- --------------------
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Portfolio. The financial statements of each Master Portfolio, including the
Portfolio of Investments, are included elsewhere in this report 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% of each Fund's average
daily net assets.
On behalf of the Funds, the Trust may enter into servicing agreements with cer-
tain financial institutions, securities dealers and other industry profession-
als (collectively, "Shareholder Servicing Agents") for the provision of certain
services to Fund shareholders. For the services provided pursuant to a Share-
holder Servicing Agreement, the Trust may pay each Shareholder Servicing Agent
a fee of up to 0.20% of the average daily net asset value of each Fund's shares
beneficially owned by customers of the Shareholder Servicing Agent. The Trust
has entered into a Shareholder Servicing Agreement with Barclays Global Invest-
ors, N.A. ("BGI").
Stephens Inc. ("Stephens"), is the Funds' co-administrator and distributor.
--------------------
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The Trust has entered into an agreement with Stephens on behalf of Class A and
Class B shares for distribution services and has adopted Plans of Distribution
pursuant to Rule 12b-1 under the 1940 Act, whereby Stephens may be compensated
for services rendered and reimbursed for expenses incurred. For providing these
services, Stephens is entitled to 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 shares on an annual basis.
Certain officers and directors of the Trust are also officers of Stephens. At
February 28, 1998, these officers of Stephens indirectly 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.
The Trust has entered into administration services arrangements with WFB and
Stephens, as co- administrators, who have agreed jointly to provide general ad-
ministration services to the Funds, such as managing and coordinating third-
party service relationships. Under the arrangement, WFB and Stephens are enti-
tled to receive for these services a combined fee (expressed as a percentage of
average daily net assets) from each Fund of 0.10%. This fee is an "all-in" or
"semi-unified" fee and WFB and Stephens, in consideration thereof, have agreed
to bear all of the Funds' ordinary operating expenses, excluding, generally,
advisory fees and costs related to securities transactions. WFB and Stephens
may delegate certain of their administration duties to sub-administrators.
- --------------------
28
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
3. CAPITAL SHARE TRANSACTIONS
As of February 28, 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 2000 Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ----------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 1,069,311 3,580,908
Shares issued in reinvestments of
dividends - Class A 642,199 486,593
Shares redeemed - Class A (3,374,501) (5,539,884)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS A (1,662,991) (1,472,383)
Shares sold - Class B 0 0
Shares issued in reinvestments of
dividends - Class B 0 0
Shares redeemed - Class B 0 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS B 0 0
Shares sold - Institutional Class 0 119,465
Shares issued in reinvestments of
dividends -Institutional Class 86 19,942
Shares redeemed - Institutional Class 0 (1,755,819)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -INSTITUTIONAL CLASS 86 (1,616,412)
<CAPTION>
LifePath 2010 Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ----------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 1,237,645 2,915,095
Shares issued in reinvestments of
dividends - Class A 625,584 275,092
Shares redeemed - Class A (1,849,051) (2,272,271)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS A 14,178 917,916
Shares sold - Class B 479,146 0
Shares issued in reinvestments of
dividends - Class B 22,852 0
Shares redeemed - Class B (25,082) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS B 476,916 0
Shares sold - Institutional Class 0 221,309
Shares issued in reinvestments of
dividends -Institutional Class 283 25,767
Shares redeemed - Institutional Class (2,200) (3,246,296)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -INSTITUTIONAL CLASS (1,917) (2,999,220)
</TABLE>
--------------------
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
LifePath 2020 Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ----------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 2,024,326 4,270,394
Shares issued in reinvestments of
dividends - Class A 1,004,243 275,620
Shares redeemed - Class A (2,988,127) (3,506,234)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS A 40,442 1,039,780
Shares sold - Class B 826,855 0
Shares issued in reinvestments of
dividends - Class B 42,494 0
Shares redeemed - Class B (35,689) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS B 833,660 0
Shares sold - Institutional Class 0 124,129
Shares issued in reinvestments of
dividends -Institutional Class 572 29,678
Shares redeemed - Institutional Class (7) (3,533,425)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - INSTITUTIONAL CLASS 565 (3,379,618)
<CAPTION>
LifePath 2030 Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ----------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 1,342,637 2,403,224
Shares issued in reinvestments of
dividends - Class A 518,299 296,195
Shares redeemed - Class A (1,526,062) (2,120,516)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS A 334,874 578,903
Shares sold - Class B 757,631 0
Shares issued in reinvestments of
dividends - Class B 30,895 0
Shares redeemed - Class B (22,437) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS B 766,089 0
Shares sold - Institutional Class 0 156,936
Shares issued in reinvestments of
dividends -Institutional Class 236 15,512
Shares redeemed - Institutional Class (297) (2,227,326)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - INSTITUTIONAL CLASS (61) (2,054,878)
</TABLE>
- --------------------
30
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
LifePath 2040 Fund
-----------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ---------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold - Class A 3,374,578 5,678,582
Shares issued in reinvestments of
dividends - Class A 1,443,325 196,508
Shares redeemed - Class A (3,354,023) (3,916,082)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS A 1,463,880 1,959,008
Shares sold - Class B 1,791,429 0
Shares issued in reinvestments of
dividends - Class B 122,045 0
Shares redeemed - Class B (78,517) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -CLASS B 1,834,957 0
Shares sold - Institutional Class 0 148,636
Shares issued in reinvestments of
dividends -Institutional Class 171 19,679
Shares redeemed - Institutional Class 0 (2,763,338)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - INSTITUTIONAL CLASS 171 (2,595,023)
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of February 28, 1998, certain Master Portfolios had loaned securities which
were collateralized by cash, money market mutual funds, and repurchase
agreements. Each Master Portfolio receives transaction fees for providing
services in connection with the securities lending program. The value of the
securities on loan and the value of the related collateral are disclosed in the
corresponding Master Portfolio's financial statements.
--------------------
31
<PAGE>
INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
STAGECOACH TRUST:
We have audited the accompanying statements of assets and liabilities of Stage-
coach Trust (comprising respectively, LifePath 2000 Fund, LifePath 2010 Fund,
LifePath 2020 Fund, LifePath 2030 Fund, and LifePath 2040 Fund) as of February
28, 1998, and the related statements of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year pe-
riod then ended and the financial highlights for each of the years in the four-
year period then ended. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included verification of securities owned as of Feb-
ruary 28, 1998, by examination and other appropriate audit procedures. An audit
also includes assessing the accounting principles used and significant esti-
mates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds of Stagecoach Trust as of February 28, 1998, the
results of their operations, the changes in their net assets and their finan-
cial highlights for the periods indicated herein in conformity with generally
accepted accounting principles.
/s/ KPMG Peat Marwick LLP
San Francisco, California
April 3, 1998
- --------------------
32
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
------------------
33
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS
PERCENT OF NET ASSETS 23.63% 48.34%
LARGE CAP GROWTH STOCKS
PERCENT OF NET ASSETS 6.52% 16.21%
3Com Corp* 1,890 $ 67,568 2,775 $ 99,206
Abbott Laboratories 1,344 100,548 6,062 453,513
Aeroquip-Vickers Inc 52 3,019 244 14,167
Airtouch Communications* 910 40,893 4,068 182,806
American Express Corp 761 68,538 3,759 338,545
American Home Products Corp 1,065 99,844 5,159 483,656
American International Group
Inc 1,293 155,402 5,648 678,819
Ameritech Corp 1,914 79,790 8,702 362,765
Amgen Inc 377 20,028 2,089 110,978
Anadarko Petroleum Corp 441 28,444 525 33,863
Andrew Corp* 160 4,420 763 21,064
Anheuser-Busch Inc 852 39,938 3,900 182,813
Applied Materials Inc* 515 18,958 2,946 108,450
Armco Inc* 111 590 953 5,063
Autodesk Inc 86 4,074 416 19,708
Automatic Data Processing 409 24,975 2,388 145,817
Avery Dennison Corp 100 5,050 866 43,733
Avon Products Inc 160 11,270 1,087 76,566
Baxter International Inc 470 26,614 2,297 130,068
Bell Atlantic Corp 1,292 115,957 6,245 560,489
Bestfoods 243 25,606 1,182 124,553
Biomet Inc 132 3,935 926 27,606
Boston Scientific Corp* 301 17,985 1,568 93,688
Bristol-Myers Squibb Co 1,784 178,734 7,894 790,880
Campbell Soup Co 800 46,450 3,629 210,709
Cardinal Health Inc 116 9,498 889 72,787
Cendant Corp* 772 28,950 6,377 239,137
Ceridian Corp* 131 6,100 632 29,428
Charles Schwab & Co Inc 278 10,495 2,147 81,049
Chase Manhattan Bank 729 90,442 3,334 413,624
Cisco Systems Inc* 1,764 116,204 7,991 526,407
Clorox Co 94 8,249 808 70,902
Coca-Cola Co 4,437 304,766 19,699 1,353,075
Cognizant Corp 180 8,989 1,332 66,517
Colgate-Palmolive Co 479 38,889 2,358 191,440
Comcast Corp Class A 455 15,925 2,744 96,040
Compaq Computer Corp 2,756 88,364 12,144 389,367
Computer Associates
International Inc 964 45,429 4,367 205,795
ConAgra Inc 888 26,640 3,727 111,810
Consolidated Stores Corp* 418 17,190 968 39,809
Corning Inc 320 13,000 1,943 78,934
Costco Co Inc* 415 20,283 1,716 83,870
</TABLE>
- --------------------
34
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
69.76% 85.55% 99.42%
23.59% 28.47% 40.68%
6,387 $ 228,335 5,378 $ 192,264 13,526 $ 483,554
13,983 1,046,103 12,072 903,136 29,796 2,229,113
552 32,051 433 25,141 996 57,830
9,166 411,897 7,997 359,365 19,655 883,247
8,502 765,711 7,343 661,329 18,051 1,625,718
11,809 1,107,094 10,240 960,000 25,343 2,375,906
12,783 1,536,357 11,049 1,327,952 27,363 3,288,690
19,938 831,165 17,296 721,027 42,504 1,771,885
4,915 261,109 4,171 221,584 10,248 544,425
1,161 74,885 889 57,341 2,306 148,737
1,659 45,830 1,416 39,103 3,374 93,193
8,938 418,969 7,766 364,031 19,012 891,188
6,712 247,086 5,719 210,531 14,220 523,474
1,943 10,322 1,647 8,750 3,846 20,432
971 46,001 759 35,958 1,817 86,080
5,379 328,455 4,554 278,079 11,348 692,937
1,922 97,061 1,659 83,779 3,873 195,587
2,443 172,079 2,120 149,327 5,022 353,737
5,115 289,637 4,426 250,622 10,868 615,401
14,201 1,274,540 12,294 1,103,386 30,347 2,723,643
2,585 272,394 2,283 240,571 5,572 587,149
2,246 66,959 1,742 51,933 4,260 127,001
3,506 209,483 3,067 183,253 7,629 455,833
18,157 1,819,104 15,630 1,565,931 38,771 3,884,370
8,322 483,196 7,171 416,366 17,729 1,029,390
2,040 167,025 1,675 137,141 4,163 340,846
14,452 541,950 12,482 468,075 42,288 1,585,800
1,516 70,589 1,169 54,432 2,833 131,912
4,857 183,352 4,245 160,249 10,409 392,940
7,665 950,939 6,695 830,598 16,436 2,039,091
18,353 1,209,004 15,847 1,043,922 39,301 2,588,954
1,910 167,602 1,597 140,137 4,005 351,439
45,057 3,094,853 39,007 2,679,293 96,460 6,625,544
3,070 153,308 2,665 133,083 6,160 307,615
5,419 439,955 4,646 377,197 11,523 935,524
6,525 228,375 5,437 190,295 13,600 476,000
27,565 883,803 24,044 770,911 58,795 1,885,115
9,986 470,591 8,603 405,417 21,260 1,001,878
8,572 257,160 7,453 223,590 18,371 551,130
2,129 87,555 1,475 60,659 4,087 168,078
4,238 172,169 3,678 149,419 8,791 357,134
3,963 193,692 3,434 167,837 8,296 405,467
</TABLE>
--------------------
35
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
CVS Corp 647 $ 47,918 1,408 $ 104,280
Dayton-Hudson Corp 284 21,957 1,744 134,833
Dell Computer Corp* 554 77,491 2,588 361,997
Dover Corp 310 11,974 1,748 67,517
Dun & Bradstreet Corp 180 6,030 1,435 48,073
DuPont (E I) de Nemours 2,040 125,078 9,023 553,223
Ecolab Inc 124 3,573 1,006 28,985
EMC Corp* 638 24,404 4,000 153,000
Equifax Inc 1,416 50,888 1,265 45,461
Federal National Mortgage
Assn 1,861 118,755 8,434 538,195
Fifth Third Bancorp 273 21,567 1,282 101,278
Freeport-McMoRan Copper &
Gold Inc Class B 231 3,479 1,682 25,335
Gannett Co Inc 478 30,861 2,245 144,943
Gap Inc 778 34,767 3,255 145,458
General Electric Co 5,883 457,403 26,082 2,027,876
General Mills Inc 210 15,107 1,232 88,627
Gillette Co 1,021 110,140 4,471 482,309
Grace (W R) Co 42 3,525 636 53,384
GTE Corp 1,666 90,172 7,643 413,677
Guidant Corp 306 22,319 1,209 88,181
Halliburton Co 461 21,437 2,121 98,626
HBO & Co 1,409 76,262 1,683 91,092
Healthsouth Corp* 1,010 27,270 3,190 86,130
Heinz (H J) Co 690 38,856 2,938 165,446
Hershey Foods Corp 214 14,271 1,155 77,024
Hewlett-Packard Co 1,774 118,858 8,303 556,301
Hilton Hotels Corp 304 9,063 2,111 62,934
Home Depot Inc 1,183 75,490 5,871 374,643
Illinois Tool Works Inc 359 21,518 2,013 120,654
Intel Corp 2,901 260,183 13,101 1,174,996
International Flavors &
Fragrances 176 8,096 943 43,378
Interpublic Group Cos Inc 128 6,976 1,029 56,081
Johnson & Johnson 2,333 176,142 10,695 807,473
Jostens Inc 107 2,515 280 6,580
Kellogg Co 756 32,225 3,259 138,915
Kimberly-Clark Corp 986 54,908 4,354 242,463
Kroger Co* 341 14,407 2,101 88,767
Lilly (Eli) & Co 1,999 131,559 8,871 583,823
Lucent Technologies Inc 1,169 126,690 5,154 558,565
Marriott International 178 13,484 1,006 76,205
Marsh & McLennan Co Inc 267 23,146 1,318 114,254
Mattel Inc 371 15,698 2,414 102,142
MBNA Corp 644 23,063 4,040 144,682
Medtronic Inc 720 38,250 3,714 197,306
Mercantile Bancorp 654 36,379 1,405 78,153
</TABLE>
- --------------------
36
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,219 $ 238,407 2,749 $ 203,598 6,670 $ 493,997
3,928 303,683 3,463 267,733 8,485 655,997
6,002 839,530 5,111 714,901 12,694 1,775,573
4,052 156,508 3,718 143,608 8,494 328,081
3,141 105,224 2,643 88,541 6,506 217,951
20,601 1,263,099 17,808 1,091,853 44,140 2,706,334
2,478 71,397 1,958 56,415 4,878 140,547
9,088 347,616 7,794 298,121 19,346 739,984
2,894 104,003 2,381 85,567 5,671 203,802
19,326 1,233,240 16,693 1,065,222 41,421 2,643,178
2,878 227,362 2,413 190,627 5,977 472,183
3,743 56,379 3,247 48,908 7,341 110,574
5,151 332,561 4,436 286,399 11,014 711,091
7,383 329,928 6,316 282,247 15,620 698,019
59,704 4,641,986 51,593 4,011,356 127,637 9,923,777
2,930 210,777 2,597 186,822 6,222 447,595
10,224 1,102,914 8,804 949,732 21,861 2,358,255
1,336 112,140 1,126 94,514 2,798 234,857
17,462 945,131 15,129 818,857 37,197 2,013,288
2,717 198,171 2,367 172,643 5,673 413,774
4,776 222,084 4,114 191,301 10,250 476,625
3,799 205,621 3,141 170,007 8,103 438,575
7,277 196,479 6,119 165,213 15,005 405,135
6,720 378,420 5,902 332,356 14,266 803,354
2,653 176,922 2,319 154,648 5,598 373,317
18,920 1,267,640 16,401 1,098,867 40,599 2,720,133
4,772 142,265 3,893 116,060 9,473 282,414
13,306 849,089 11,586 739,332 28,423 1,813,743
4,572 274,034 3,904 233,996 9,687 580,614
29,806 2,673,226 25,825 2,316,180 63,812 5,723,139
2,074 95,404 1,798 82,708 4,089 188,094
2,325 126,713 2,058 112,161 4,760 259,420
24,511 1,850,580 21,249 1,604,300 52,505 3,964,128
690 16,215 567 13,325 1,398 32,853
7,501 319,730 6,470 275,784 16,003 682,128
10,013 557,599 8,677 483,200 21,241 1,182,858
4,630 195,618 4,069 171,915 9,729 411,050
20,223 1,330,926 17,522 1,153,167 43,315 2,850,668
11,699 1,267,879 10,166 1,101,740 24,952 2,704,173
2,355 178,391 1,978 149,834 4,951 375,038
3,110 269,598 2,689 233,103 6,617 573,611
5,313 224,806 4,565 193,157 11,363 480,797
9,145 327,505 7,858 281,415 19,491 698,021
8,514 452,306 7,298 387,706 18,213 967,566
2,703 150,354 2,196 122,153 10,010 556,806
</TABLE>
--------------------
37
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Merck & Co Inc 2,173 $ 277,193 9,536 $ 1,216,436
MGIC Investment Corp 205 15,106 884 65,140
Microsoft Corp* 4,238 359,171 19,222 1,629,065
Millipore Corp 52 1,966 376 14,218
Minnesota Mining &
Manufacturing Co 685 58,439 3,265 278,545
Monsanto Co 1,040 52,910 4,781 243,233
Morgan Stanley Dean Witter
Discover & Co 984 68,590 4,717 328,681
Newell Co 259 11,882 1,330 61,014
Northern Telecom Ltd 1,002 53,419 4,174 222,526
Omnicom Group 776 35,502 1,340 61,305
Oracle Systems Corp* 1,706 42,010 7,818 192,518
Oryx Energy Co* 199 5,062 842 21,418
Owens Corning Fiberglass
Corp 28 865 411 12,690
Owens Illinois Inc* 706 27,093 1,158 44,438
Parametric Technology Corp* 125 7,570 1,053 63,772
Pepsico Inc 2,762 100,986 12,152 444,307
Perkin-Elmer Corp 29 2,122 406 29,714
Pfizer Inc 2,295 203,108 10,309 912,347
Philip Morris Co Inc 4,281 185,956 19,397 842,557
Pioneer Hi Bred
International 135 14,006 479 49,696
Pitney Bowes Inc 516 24,188 2,346 109,969
Procter & Gamble Co 2,403 204,105 10,684 907,472
Quaker Oats Co 142 7,650 1,173 63,195
Ralston-Ralston Purina Group 155 15,723 896 90,888
Raychem Corp 54 2,346 709 30,797
Reebok International Ltd* 97 3,025 429 13,379
Rowan Cos Inc* 126 3,552 804 22,663
Sara Lee Corp 833 47,065 3,853 217,694
SBC Communications Inc 1,653 125,008 7,336 554,785
Schering-Plough Corp 1,283 97,588 5,829 443,368
Schlumberger Ltd 875 65,953 3,980 299,992
Shared Medical 42 3,210 155 11,848
Southwest Airlines Inc 346 9,926 1,869 53,617
Stanley Works 112 5,355 766 36,624
State Street Corp 1,445 89,319 1,267 78,316
Sun Microsystems Inc* 522 24,860 3,050 145,256
Synovus Financial 925 32,491 1,410 49,526
Sysco Corp 205 9,648 1,387 65,276
Tektronix Inc 3 134 376 16,779
Tele-Communications Inc* 776 22,553 4,151 120,638
Tellabs Inc* 257 15,516 1,481 89,415
Texas Instruments 660 38,198 3,097 179,239
TJX Cos Inc 163 6,296 1,318 50,908
Tribune Co 241 15,560 967 62,432
Tupperware Corp 63 1,693 500 13,438
</TABLE>
- --------------------
38
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
21,815 $ 2,782,776 18,950 $ 2,417,309 46,796 $ 5,969,415
2,091 154,081 1,813 133,595 4,494 331,152
44,040 3,732,390 38,128 3,231,348 94,116 7,976,331
788 29,796 686 25,939 1,628 61,559
7,472 637,455 6,429 548,474 15,846 1,351,862
10,779 548,382 9,224 469,271 23,000 1,170,125
10,792 752,033 9,329 650,094 23,052 1,606,436
3,004 137,809 2,586 118,633 6,030 276,626
9,560 509,668 8,248 439,722 20,372 1,086,082
3,040 139,080 2,520 115,290 6,116 279,807
17,917 441,206 15,616 384,544 38,117 938,631
1,889 48,051 1,613 41,031 4,063 103,353
1,017 31,400 946 29,208 1,995 61,596
2,641 101,348 2,201 84,463 5,315 203,963
2,349 142,261 2,012 121,852 5,004 303,055
27,649 1,010,917 24,065 879,877 58,969 2,156,054
789 57,745 643 47,060 1,887 138,105
23,565 2,085,502 20,453 1,810,090 50,505 4,469,693
44,159 1,918,157 38,208 1,659,660 94,562 4,107,537
1,235 128,131 1,033 107,174 2,756 285,935
5,388 252,562 4,564 213,938 11,274 528,469
24,458 2,077,401 21,227 1,802,968 52,416 4,452,084
2,605 140,344 2,195 118,256 5,309 286,022
1,957 198,513 1,625 164,836 4,138 419,748
1,623 70,499 1,366 59,336 3,262 141,693
1,041 32,466 923 28,786 2,094 65,307
1,764 49,723 1,472 41,492 3,279 92,427
8,737 493,640 7,573 427,874 18,602 1,051,013
16,665 1,260,291 14,426 1,090,966 35,725 2,701,703
13,388 1,018,325 11,569 879,967 28,528 2,169,911
8,994 677,923 7,846 591,392 19,246 1,450,667
461 35,238 364 27,823 904 69,100
4,134 118,594 3,688 105,799 8,366 240,000
1,759 84,102 1,487 71,097 3,370 161,128
3,032 187,416 2,515 155,458 6,126 378,663
6,829 325,231 5,842 278,225 14,527 691,848
3,091 108,571 2,815 98,877 6,679 234,600
3,085 145,188 2,699 127,022 6,737 317,060
924 41,234 808 36,057 1,874 83,627
9,284 269,816 7,934 230,582 19,822 576,077
3,317 200,264 2,856 172,431 7,088 427,938
7,081 409,813 6,045 349,854 15,157 877,211
2,929 113,133 2,607 100,695 6,191 239,127
2,299 148,429 1,995 128,802 4,699 303,379
1,136 30,530 909 24,429 2,302 61,866
</TABLE>
--------------------
39
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Tyco International Ltd 1,224 $ 62,118 4,220 $ 214,165
UST Inc 292 10,348 1,528 54,149
U.S. Air Group* 133 8,421 663 41,976
U.S. Bancorp 447 51,433 2,006 230,815
Walgreen Co 680 24,948 3,884 142,494
Wal-Mart Stores Inc 4,048 187,473 17,993 833,301
Warner Lambert Co 479 70,054 2,197 321,311
Washington Mutual Inc 407 27,320 2,089 140,224
Wrigley (Wm) Jr Co 184 14,053 979 74,771
Xerox Corp 485 43,013 2,641 234,224
------------ ------------
TOTAL LARGE CAP GROWTH
STOCKS
- VALUE $ 7,575,296 $ 33,751,345
- COST $ 5,181,694 $ 19,540,116
LARGE CAP VALUE STOCKS
PERCENT OF NET ASSETS 5.86% 15.73%
Adobe Systems Inc 122 $ 5,391 563 $ 24,878
Advanced Micro Devices* 200 4,687 1,286 30,141
Aetna Inc 274 23,941 1,300 113,588
Ahmanson (H F) & Co 134 8,367 872 54,446
Air Products & Chemicals Inc 130 10,912 948 79,573
Alberto Culver Co Class B 102 3,105 485 14,762
Albertson's Inc 405 18,959 2,180 102,051
Alcan Aluminum Ltd 427 13,264 1,995 61,970
Allegheny Teledyne Inc 263 7,134 1,438 39,006
Allergan Inc 165 5,775 604 21,140
Allied Signal Inc 922 39,243 4,665 198,554
Allstate Corp 722 67,327 3,601 335,793
Alltel Corp 329 15,031 1,637 74,790
Aluminum Co Of America 317 23,260 1,525 111,897
ALZA Corp* 122 4,560 699 26,125
Amerada Hess Corp 142 8,422 850 50,416
Ameren Corp* 208 7,995 897 34,478
American Electric Power Inc 306 14,688 1,650 79,200
American General Corp 694 40,311 2,416 140,402
American Greetings Corp
Class A 133 6,068 705 32,166
American Stores Co 461 11,611 2,387 60,123
Amoco Corp 814 69,190 4,000 340,000
AMP Inc 389 17,189 1,920 84,840
AMR Corp* 137 17,339 796 100,744
Aon Corp 267 15,970 1,510 90,317
Apache Corp 166 5,644 758 25,772
Apple Computer Inc* 235 5,552 1,090 25,751
Archer-Daniels-Midland Co 1,000 22,438 5,009 112,389
Armstrong World Industries
Inc 102 8,007 394 30,929
ASARCO Inc 25 553 402 8,894
</TABLE>
- --------------------
40
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
9,749 $ 494,762 8,442 $ 428,432 20,724 $ 1,051,743
3,453 122,366 3,035 107,553 7,026 248,984
1,493 94,526 1,470 93,069 3,462 219,188
4,493 516,976 3,855 443,566 9,591 1,103,564
8,962 328,793 7,856 288,217 19,170 703,299
41,060 1,901,591 35,580 1,647,799 87,954 4,073,370
4,920 719,550 4,275 625,219 10,561 1,544,546
4,648 311,997 4,045 271,521 10,003 671,451
2,164 165,276 1,864 142,363 4,489 342,847
5,910 524,143 5,227 463,570 12,625 1,119,680
------------ ------------ ------------
$ 76,974,619 $ 66,497,211 $164,642,761
$ 44,728,690 $ 38,842,519 $106,509,956
23.40% 28.11% 27.32%
1,423 $ 62,879 1,247 $ 55,102 2,204 $ 97,389
2,877 67,430 2,422 56,766 3,984 93,375
2,968 259,329 2,516 219,835 4,254 371,693
1,905 118,943 1,584 98,901 3,115 194,493
2,185 183,403 1,876 157,467 3,168 265,914
1,110 33,786 882 26,846 1,769 53,844
4,930 230,786 4,238 198,391 7,084 331,620
4,535 140,868 3,904 121,268 6,607 205,230
3,498 94,883 2,898 78,608 4,998 135,571
1,289 45,115 1,098 38,430 2,008 70,280
11,296 480,786 9,737 414,431 16,337 695,344
8,573 799,432 7,333 683,802 12,357 1,152,290
3,705 169,272 3,140 143,459 5,339 243,926
3,427 251,456 2,938 215,576 4,971 364,747
1,713 64,023 1,436 53,670 2,386 89,177
1,824 108,186 1,546 91,697 2,678 158,839
2,736 105,165 2,310 88,791 3,905 150,098
3,801 182,448 3,250 156,000 5,420 260,160
5,158 299,796 4,588 266,672 7,751 450,516
1,536 70,080 1,192 54,385 2,080 94,900
5,544 139,639 4,645 116,996 7,830 197,218
9,696 824,160 8,342 709,070 14,048 1,194,080
4,369 193,055 3,770 166,587 6,363 281,165
1,842 233,128 1,596 201,994 2,602 329,316
3,319 198,518 2,854 170,705 4,834 289,134
1,841 62,594 1,548 52,632 2,674 90,916
2,547 60,173 2,128 50,274 3,644 86,090
11,107 249,213 9,536 213,964 16,107 361,401
838 65,783 789 61,937 1,203 94,435
875 19,359 621 13,740 1,370 30,311
</TABLE>
--------------------
41
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Ashland Inc 109 $ 6,070 706 $ 39,315
AT & T Corp 2,814 171,302 13,487 821,021
Atlantic Richfield Corp 523 40,663 2,675 207,981
AutoZone Inc* 256 7,744 1,311 39,658
Baker Hughes Inc 328 13,428 1,504 61,570
Ball Corp 54 1,762 296 9,657
Baltimore Gas & Electric Co 237 7,480 1,279 40,368
Banc One Corp 1,142 64,512 5,407 305,484
Bank Of New York Inc 694 40,642 3,102 181,661
BankAmerica Corp 1,171 90,753 5,713 442,757
BankBoston Corp 256 25,520 1,302 129,793
Bankers Trust Corp 194 22,941 869 102,759
Bard (C R) Inc 143 4,987 555 19,356
Barrick Gold Corp 623 12,032 3,338 64,465
Battle Mountain Gold Co 337 2,022 1,957 11,742
Bausch & Lomb Inc 56 2,509 491 22,003
Bay Networks* 302 10,230 1,680 56,910
BB&T Corp 500 31,031 1,127 69,944
Becton Dickinson & Co 159 10,116 987 62,798
Bellsouth Corp 1,680 102,480 8,252 503,372
Bemis Co 142 6,399 448 20,188
Beneficial Corp 44 5,192 452 53,336
Bethlehem Steel Corp* 67 712 938 9,966
Black & Decker Corp 126 6,347 861 43,373
Block (H R) Inc 115 5,412 828 38,968
Boeing Co 1,742 94,504 8,317 451,197
Boise Cascade Corp 69 2,299 503 16,756
Briggs & Stratton Corp 52 2,304 268 11,876
Brown-Forman Corp Class B 74 4,107 643 35,687
Browning-Ferris Industries
Inc 347 11,559 1,723 57,397
Brunswick Corp 196 6,223 835 26,511
Burlington Northern Santa Fe 296 29,489 1,413 140,770
Burlington Resources Inc 284 12,709 1,526 68,289
Cabletron Systems Inc* 257 3,984 1,334 20,677
Carolina Power & Light Co 263 10,980 1,383 57,740
Case Corp 103 6,701 704 45,804
Caterpillar Inc 630 34,414 3,259 178,023
CBS Corp 1,410 43,622 6,277 194,195
Centex Corp 57 4,165 249 18,193
Central & South West Corp 340 9,116 1,898 50,890
Champion International Corp 142 7,251 801 40,901
Charming Shoppes Inc* 59 264 951 4,250
Chevron Corp 1,120 90,860 5,455 442,537
Chrysler Corp 1,119 43,571 5,550 216,103
Chubb Corp 315 25,141 1,524 121,634
</TABLE>
- --------------------
42
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,505 $ 83,810 1,295 $ 72,115 2,104 $ 117,166
32,351 1,969,367 27,869 1,696,525 46,849 2,851,933
6,392 496,978 5,552 431,668 9,220 716,855
3,021 91,385 2,633 79,648 4,308 130,317
3,398 139,106 2,818 115,362 4,860 198,956
642 20,945 538 17,552 904 29,493
2,968 93,678 2,489 78,559 4,187 132,152
12,864 726,794 11,105 627,404 18,689 1,055,917
7,545 441,854 6,423 376,147 10,868 636,457
13,834 1,072,135 11,961 926,978 20,064 1,554,960
2,944 293,480 2,509 250,116 4,177 416,395
1,999 236,382 1,927 227,868 2,875 339,969
1,208 42,129 897 31,283 1,796 62,636
7,557 145,945 6,282 121,321 10,574 204,210
4,566 27,396 3,560 21,360 7,316 43,896
1,150 51,534 975 43,692 1,555 69,683
4,271 144,680 3,564 120,731 6,010 203,589
2,752 170,796 2,331 144,668 3,962 245,892
2,471 157,217 2,130 135,521 3,570 227,141
19,813 1,208,593 17,090 1,042,490 28,649 1,747,589
1,075 48,442 892 40,196 1,634 73,632
1,084 127,912 937 110,566 1,558 183,844
2,310 24,544 1,752 18,615 3,489 37,071
1,857 93,546 1,659 83,572 2,734 137,725
2,084 98,078 1,743 82,030 2,990 140,717
19,888 1,078,924 17,157 930,767 28,885 1,567,011
1,147 38,209 996 33,179 1,723 57,397
557 24,682 459 20,339 829 36,735
1,355 75,203 1,145 63,548 1,995 110,723
3,988 132,850 3,351 111,630 5,669 188,849
1,962 62,293 1,660 52,705 2,840 90,170
3,129 311,727 2,685 267,493 4,534 451,700
3,518 157,430 3,054 136,666 5,082 227,419
3,094 47,957 2,697 41,804 4,826 74,803
3,024 126,252 2,584 107,882 4,354 181,779
1,493 97,138 1,311 85,297 2,208 143,658
7,410 404,771 6,408 350,037 10,759 587,710
14,074 435,414 12,022 371,931 20,306 628,217
545 39,819 552 40,331 856 62,542
4,320 115,830 3,677 98,590 6,078 162,966
1,932 98,653 1,643 83,896 2,714 138,584
2,288 10,224 1,620 7,239 3,364 15,033
13,133 1,065,415 11,261 913,549 18,989 1,540,483
13,230 515,143 11,346 441,785 19,164 746,198
3,368 268,809 2,935 234,250 4,867 388,447
</TABLE>
--------------------
43
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
CIGNA Corp 79 $ 15,089 651 $ 124,341
Cincinnati Financial Corp 230 31,050 546 73,710
Cincinnati Milacron Inc 61 1,883 362 11,177
Cinergy Corp 327 11,384 1,427 49,677
Circuit City Stores Inc 147 5,678 884 34,145
Citicorp 797 105,603 3,816 505,620
Clear Channel Communications
Inc* 404 36,613 842 76,306
Coastal Corp 212 13,489 904 57,517
Columbia Gas System Inc 141 10,760 451 34,417
Columbia/HCA Healthcare Corp 1,140 30,923 5,759 156,213
Comerica Inc 143 14,416 888 89,522
Computer Sciences Corp* 141 14,761 666 69,722
Conseco Inc 358 16,804 1,704 79,981
Consolidated Edison Inc 445 18,913 2,044 86,870
Consolidated Natural Gas Co 142 8,165 851 48,933
Cooper Industries Inc 233 13,077 1,084 60,840
Cooper Tire & Rubber Co 125 2,883 649 14,968
Coors (Adolph) Co Class B 69 2,156 343 10,719
CoreStates Financial Corp 313 26,429 1,768 149,286
Countrywide Credit
Industries Inc 1,304 57,947 945 41,993
Crane Co 80 3,920 395 19,355
Crown Cork & Seal Co 185 9,990 1,169 63,126
CSX Corp 377 21,088 1,913 107,008
Cummins Engine Co Inc 25 1,447 298 17,247
Cyprus Amax Minerals 140 2,293 800 13,100
Dana Corp 152 8,294 891 48,615
Darden Restaurants Inc 160 2,160 1,329 17,941
Data General Corp* 64 1,320 444 9,158
Deere & Co 439 24,639 2,249 126,225
Delta Air Lines Inc 141 15,942 664 75,074
Deluxe Corp 174 5,927 749 25,513
Digital Equipment Corp* 224 12,754 1,347 76,695
Dillards Inc Class A 228 8,123 948 33,773
Disney (Walt) Co 1,123 125,706 5,572 623,716
Dominion Resources Inc 278 11,085 1,645 65,594
Donnelley (R R) & Sons Co 259 10,263 1,300 51,513
Dow Chemical Co 441 40,352 1,989 181,993
Dow Jones & Co Inc 204 10,481 888 45,621
Dresser Industries Inc 314 14,032 1,599 71,455
DSC Communications Corp* 226 4,435 1,048 20,567
DTE Energy Co 238 8,747 1,330 48,877
Duke Power Co 651 36,171 3,190 177,244
Eastern Enterprises 39 1,728 200 8,863
Eastman Chemical Co 124 8,122 646 42,313
Eastman Kodak Co 593 38,916 2,672 175,350
</TABLE>
- --------------------
44
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,432 $ 273,512 1,272 $ 242,952 2,160 $ 412,560
1,045 141,075 1,040 140,400 1,595 215,325
802 24,762 767 23,681 1,215 37,513
3,186 110,913 2,646 92,114 4,514 157,144
1,983 76,593 1,673 64,620 2,770 106,991
9,130 1,209,725 7,850 1,040,125 13,167 1,744,628
1,998 181,069 2,169 196,566 2,849 258,191
2,076 132,086 1,810 115,161 3,095 196,919
1,066 81,349 990 75,549 1,624 123,932
13,036 353,612 11,167 302,905 18,654 505,990
2,078 209,488 1,820 183,479 3,046 307,075
1,576 164,987 1,298 135,884 2,216 231,988
3,773 177,095 3,254 152,735 5,441 255,387
4,733 201,152 3,967 168,597 6,753 287,003
1,925 110,687 1,741 100,107 2,713 155,997
2,438 136,833 2,050 115,056 3,437 192,902
1,631 37,615 1,228 28,321 2,207 50,899
738 23,063 556 17,375 1,159 36,219
3,988 336,737 3,412 288,101 5,715 482,560
2,207 98,074 1,876 83,365 3,064 136,156
915 44,835 862 42,214 1,398 68,502
2,529 136,566 2,155 116,370 3,737 201,798
4,343 242,937 3,783 211,612 6,277 351,120
746 43,175 624 36,114 1,156 66,903
1,856 30,392 1,445 23,662 2,934 48,044
2,102 114,690 1,794 97,885 3,057 166,798
3,179 42,917 2,566 34,641 4,753 64,166
1,001 20,646 772 15,923 1,522 31,391
5,040 282,870 4,282 240,327 7,305 409,993
1,443 163,149 1,275 144,155 2,175 245,911
1,621 55,215 1,377 46,904 2,299 78,310
2,928 166,713 2,487 141,604 4,300 244,831
2,275 81,047 1,878 66,904 3,180 113,288
13,466 1,507,350 11,568 1,294,893 19,461 2,178,416
3,704 147,697 3,149 125,566 5,311 211,776
2,928 116,022 2,433 96,408 4,205 166,623
4,511 412,757 3,878 354,837 6,497 594,475
1,930 99,154 1,604 82,406 2,715 139,483
3,538 158,104 2,927 130,800 5,074 226,744
2,339 45,903 1,976 38,779 3,337 65,489
2,943 108,155 2,447 89,927 4,121 151,447
7,226 401,495 6,149 341,654 10,401 577,906
426 18,877 282 12,496 686 30,398
1,615 105,783 1,375 90,062 2,285 149,668
6,516 427,613 5,591 366,909 9,331 612,347
</TABLE>
--------------------
45
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Eaton Corp 86 $ 8,261 684 $ 65,707
Echlin Inc 105 5,309 596 30,135
Edison International 727 20,083 3,533 97,599
EG & G Inc 25 673 453 12,203
Emerson Electric Co 755 48,178 3,678 234,702
Engelhard Corp 270 4,894 1,271 23,037
Enron Corp 528 24,837 2,723 127,981
Entergy Corp 440 12,733 2,136 61,810
Exxon Corp 4,257 271,916 20,508 1,309,948
Fed Home Loan Mortgage Corp 1,193 56,369 5,834 275,657
Federated Department Stores
Inc* 359 16,828 1,903 89,203
First Chicago NBD Corp 547 44,957 2,446 201,031
First Data Corp 563 19,142 3,700 125,800
First Union Corp of New
England 1,500 79,031 5,195 273,712
FirstEnergy Corp 350 10,128 2,010 58,164
Fleet Financial Group Inc 466 36,727 2,171 171,102
Fleetwood Enterprises Inc 32 1,500 328 15,375
Fluor Corp 123 5,789 749 35,250
FMC Corp* 102 7,382 338 24,463
Ford Motor Co 2,081 117,707 9,992 565,172
Fort James Corp 576 26,136 1,546 70,150
Fortune Brands Inc 260 10,319 1,516 60,166
Foster Wheeler Corp 102 2,729 341 9,122
FPL Group Inc 341 19,799 1,628 94,526
Freeport-McMoRan Copper &
Gold Inc Class A 38 546 28 403
Frontier Corp 290 8,029 1,500 41,531
Fruit of the Loom Inc Class
A* 117 3,759 655 21,042
FW Woolworth Co* 187 4,441 1,247 29,616
General Dynamics Corp 63 5,465 602 52,224
General Instrument Corp* 156 2,603 204 3,404
General Motors Corp Class A 1,211 83,483 5,827 401,699
General Re Corp 101 21,513 651 138,663
General Signal Corp 135 5,484 441 17,916
Genuine Parts Co 359 13,283 1,644 60,828
Georgia-Pacific Corp 137 8,040 793 46,539
Giant Food Inc Class A 156 5,665 494 17,938
Golden West Financial 64 5,712 500 44,625
Goodrich (B F) Co 92 4,560 526 26,070
Goodyear Tire & Rubber Co 247 17,074 1,345 92,973
GPU Inc 242 9,725 1,073 43,121
Grainger (W W) Inc 41 3,969 447 43,275
Great Atlantic & Pacific Tea
Co 69 2,100 293 8,918
Great Lakes Chemical Corp 77 3,744 538 26,160
Green Tree Financial Corp 256 5,872 1,199 27,502
Harcourt General Inc 89 4,806 582 31,428
</TABLE>
- --------------------
46
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,574 $ 151,202 1,294 $ 124,305 2,219 $ 213,163
1,252 63,304 1,080 54,608 1,781 90,052
7,587 209,591 6,515 179,977 10,982 303,378
972 26,183 723 19,476 1,467 39,517
8,795 561,231 7,666 489,187 12,823 818,268
2,901 52,581 2,322 42,086 4,126 74,784
6,385 300,095 5,496 258,312 9,135 429,345
4,875 141,070 4,234 122,521 7,009 202,823
49,166 3,140,478 42,426 2,709,961 71,242 4,550,583
13,847 654,271 11,928 563,598 20,116 950,481
4,166 195,281 3,622 169,781 6,011 281,766
5,844 480,304 4,953 407,075 8,377 688,485
8,548 290,632 7,309 248,506 12,349 419,866
12,489 658,014 10,787 568,340 18,101 953,696
4,650 134,559 3,915 113,290 6,620 191,566
5,078 400,210 4,255 335,347 7,844 618,205
713 33,422 570 26,719 1,065 49,922
1,739 81,842 1,386 65,229 2,428 114,268
728 52,689 581 42,050 1,098 79,468
23,967 1,355,633 20,643 1,167,620 34,675 1,961,305
4,164 188,942 3,619 164,212 5,963 270,571
3,494 138,668 2,894 114,856 4,892 194,151
732 19,581 583 15,595 1,254 33,545
3,644 211,580 3,130 181,736 5,289 307,093
52 747 38 546 236 3,393
3,337 92,393 2,754 76,251 4,622 127,972
1,442 46,324 1,151 36,976 2,093 67,238
2,678 63,602 2,311 54,886 3,809 90,464
1,301 112,862 1,112 96,466 1,846 160,140
2,625 43,805 2,343 39,099 5,783 96,504
14,137 974,569 12,129 836,143 20,415 1,407,359
1,613 343,569 1,329 283,077 2,274 484,362
1,061 43,103 799 32,459 1,398 56,794
3,574 132,238 3,049 112,795 5,151 190,587
1,889 110,861 1,536 90,144 2,697 158,280
1,186 43,067 946 34,352 1,700 61,731
1,102 98,354 997 88,982 1,601 142,889
1,413 70,032 1,211 60,020 2,053 101,752
3,108 214,840 2,687 185,739 4,471 309,058
2,442 98,138 2,081 83,630 3,667 147,368
956 92,553 885 85,679 1,443 139,700
732 22,280 612 18,628 1,177 35,825
1,200 58,350 1,045 50,813 1,712 83,246
2,715 62,275 2,337 53,605 3,864 88,631
1,419 76,626 1,211 65,394 2,053 110,862
</TABLE>
--------------------
47
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Harland (John H) Co 55 $ 835 248 $ 3,767
Harnischfeger Industries Inc 110 3,891 405 14,327
Harrah's Entertainment Inc* 108 2,275 897 18,893
Harris Corp Inc 104 5,272 692 35,076
Hartford Financial Services
Group 236 23,187 1,081 106,208
Hasbro Inc 198 7,190 1,105 40,125
Helmerich & Payne Inc 90 2,604 520 15,048
Hercules Inc 92 4,445 778 37,587
Homestake Mining Co 222 2,220 1,287 12,870
Honeywell Inc 184 14,582 1,039 82,341
Household International Inc 145 18,832 960 124,680
Houston Industries Inc 434 11,230 2,518 65,153
Humana Inc* 257 6,537 1,470 37,393
Huntington Bancshares Inc 1,454 52,162 1,736 62,279
Ikon Office Solutions Inc 194 6,341 1,228 40,140
Inco Ltd 236 4,174 1,469 25,983
Ingersoll-Rand Co 272 12,954 1,450 69,056
Inland Steel Industries Inc 102 2,104 432 8,910
International Business
Machines Corp 1,680 175,455 8,102 846,153
International Paper Co 522 24,338 2,716 126,634
ITT Industries Inc 236 8,083 1,081 37,024
JC Penney Co Inc 456 32,234 2,163 152,897
Jefferson-Pilot Corp 107 8,975 639 53,596
Johnson Controls Inc 196 10,890 700 38,894
K Mart Corp* 804 10,754 4,367 58,409
Kaufman & Broad Home Corp 59 1,527 308 7,970
Kerr--McGee Corp 43 2,908 448 30,296
KeyCorp 382 26,764 1,894 132,698
KingWorld Productions 204 5,444 580 15,479
KLA Instruments Corp* 404 18,647 736 33,971
Knight-Ridder Inc 144 8,100 797 44,831
Laidlaw Inc 495 7,270 2,979 43,754
Lehman Brothers Holdings 500 31,531 800 50,450
Limited Inc 477 13,833 2,409 69,861
Lincoln National Corp 144 12,060 936 78,390
Liz Claiborne Inc 91 4,550 585 29,250
Lockheed Martin Corp 360 42,008 1,699 198,252
Loews Corp 155 15,548 983 98,607
Longs Drug Stores Corp 76 2,408 349 11,059
Louisiana-Pacific Corp 123 2,698 942 20,665
Lowe's Co Inc 257 15,018 1,590 92,916
LSI Logic Corp* 128 3,032 1,164 27,572
Mallinckrodt Group Inc 87 3,377 684 26,548
Manor Care Inc 161 6,048 601 22,575
Masco Corp 256 13,920 1,484 80,692
</TABLE>
- --------------------
48
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
620 $ 9,416 616 $ 9,356 1,015 $ 15,415
998 35,304 854 30,210 1,380 48,818
2,032 42,799 1,602 33,742 2,818 59,354
1,570 79,579 1,333 67,566 2,327 117,950
2,315 227,449 2,043 200,725 3,450 338,962
2,523 91,616 2,112 76,692 3,561 129,309
920 26,623 840 24,308 1,620 46,879
1,916 92,567 1,661 80,247 2,723 131,555
2,961 29,610 2,296 22,960 4,626 46,260
2,489 197,253 2,152 170,546 3,672 291,006
2,172 282,089 1,878 243,905 3,055 396,768
5,764 149,144 4,880 126,270 8,122 210,157
3,272 83,232 2,822 71,785 4,615 117,394
3,826 137,258 3,273 117,419 5,444 195,303
2,671 87,308 2,225 72,730 3,816 124,735
3,405 60,226 2,750 48,641 5,033 89,021
3,307 157,496 2,962 141,065 4,717 224,647
996 20,543 751 15,489 1,488 30,690
19,410 2,027,132 16,748 1,749,119 28,083 2,932,918
6,088 283,853 5,233 243,989 8,764 408,622
2,416 82,748 1,944 66,582 3,542 121,313
4,961 350,681 4,357 307,985 7,225 510,717
1,417 118,851 1,168 97,966 2,013 168,840
1,681 93,401 1,535 85,288 2,450 136,128
9,817 131,302 8,137 108,832 13,826 184,923
734 18,992 647 16,741 1,189 30,765
962 65,055 784 53,018 1,374 92,917
4,337 303,861 3,806 266,658 6,337 443,986
1,398 37,309 1,168 31,171 2,224 59,353
1,684 77,727 1,660 76,619 2,528 116,683
1,724 96,975 1,481 83,306 2,403 135,169
6,633 97,422 5,452 80,076 9,312 136,770
2,000 126,125 2,100 132,431 2,900 182,881
5,517 159,993 4,667 135,343 7,826 226,954
2,079 174,116 1,770 148,238 2,951 247,146
1,399 69,950 1,114 55,700 2,028 101,400
3,890 453,914 3,368 393,003 5,597 653,100
2,282 228,913 2,012 201,829 3,313 332,335
794 25,160 671 21,262 1,256 39,800
2,221 48,723 1,774 38,917 3,116 68,357
3,499 204,473 2,992 174,845 5,009 292,713
2,742 64,951 2,341 55,452 4,060 96,171
1,443 56,006 1,205 46,769 2,092 81,196
1,299 48,794 1,012 38,013 1,837 69,002
3,264 177,480 2,817 153,174 4,721 256,704
</TABLE>
--------------------
49
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
May Department Stores Co 394 $ 23,936 2,018 $ 122,594
Maytag Corp 216 9,720 879 39,555
MBIA Inc 204 14,930 764 55,915
McDermott International Inc 146 5,749 456 17,955
McDonald's Corp 1,269 69,478 5,690 311,527
McGraw-Hill Inc 176 13,310 840 63,525
MCI Communications Corp 1,194 57,088 5,797 277,169
Mead Corp 112 3,829 975 33,333
Mellon Bank Corp 437 27,231 2,273 141,636
Mercantile Stores Co Inc 102 6,713 340 22,376
Meredith Corp 102 4,380 434 18,635
Merrill Lynch & Co 530 37,928 2,774 198,514
Micron Technology Inc* 335 11,118 1,912 63,455
Mirage Resorts Inc* 1,597 36,531 1,576 36,051
Mobil Corp 1,329 96,269 6,520 472,293
Moore Corp Ltd 104 1,632 783 12,283
Morgan (J P) & Co Inc 346 41,347 1,584 189,288
Morton International Inc 238 7,869 1,272 42,056
Motorola Inc 1,026 57,200 5,001 278,806
NACCO Industries Inc Class A 18 2,341 48 6,243
Nalco Chemical Co 74 2,979 639 25,720
National City Corp 332 21,663 1,900 123,975
National Semiconductor* 266 6,351 1,312 31,324
National Service Industries
Inc 39 2,162 442 24,503
NationsBank Corp 1,662 113,847 7,797 534,095
Navistar International Corp* 134 4,070 681 20,685
New York Times Co Class A 216 14,135 899 58,828
Newmont Mining Corp 164 4,746 1,336 38,661
Niagara Mohawk Power Corp* 131 1,678 1,197 15,337
NICOR Inc 44 1,810 450 18,506
Nike Inc Class B 383 16,804 2,411 105,783
Nordstrom Inc 122 6,996 645 36,987
Norfolk Southern Corp 692 23,831 3,300 113,644
Northern States Power Co 170 9,339 640 35,160
Northern Trust Corp 534 40,617 920 69,978
Northrop Grumman Corp 139 19,321 554 77,006
Norwest Corp 1,247 51,049 6,618 270,924
Novell Inc* 535 5,626 3,146 33,082
Nucor Corp 131 6,747 734 37,801
Occidental Petroleum Corp 600 15,338 2,960 75,665
ONEOK Inc 49 1,715 240 8,400
P P & L Resources Inc 257 5,750 1,470 32,891
PACCAR Inc 103 6,521 687 43,496
Pacific Enterprises Co 152 5,520 704 25,564
PacifiCorp 507 12,263 2,593 62,718
</TABLE>
- --------------------
50
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
4,585 $ 278,539 3,934 $ 238,991 6,697 $ 406,843
1,899 85,455 1,639 73,755 2,664 119,880
1,767 129,322 1,510 110,513 2,805 205,291
1,093 43,037 947 37,288 1,593 62,724
13,681 749,035 11,787 645,338 19,844 1,086,459
1,965 148,603 1,737 131,361 2,890 218,556
13,902 664,689 11,959 571,790 20,099 960,983
2,111 72,170 1,940 66,324 3,012 102,973
5,056 315,052 4,332 269,938 7,361 458,682
730 48,043 585 38,500 1,100 72,394
1,126 48,348 908 38,987 1,646 70,675
6,638 475,032 5,694 407,477 9,612 687,859
4,211 139,753 3,635 120,637 6,077 201,680
3,580 81,893 3,029 69,288 5,074 116,068
15,626 1,131,908 13,473 975,950 22,665 1,641,796
1,808 28,363 1,336 20,959 2,824 44,302
3,572 426,854 3,030 362,085 5,097 609,091
2,676 88,475 2,344 77,499 3,814 126,100
11,857 661,028 10,208 569,096 17,199 958,844
152 19,770 149 19,379 269 34,987
1,388 55,867 1,152 46,368 1,899 76,435
4,274 278,878 3,683 240,316 6,145 400,961
3,284 78,406 2,844 67,900 4,646 110,923
871 48,286 774 42,909 1,319 73,122
18,748 1,284,238 16,166 1,107,371 27,102 1,856,487
1,512 45,927 1,259 38,242 2,284 69,377
1,876 122,761 1,727 113,011 2,733 178,841
3,105 89,851 2,693 77,929 4,461 129,090
3,027 38,783 2,486 31,852 4,509 57,772
1,009 41,495 801 32,941 1,509 62,058
5,819 255,309 4,986 218,761 8,402 368,638
1,503 86,188 1,263 72,425 2,176 124,780
7,546 259,865 6,643 228,768 10,857 373,888
1,547 84,988 1,243 68,287 2,174 119,434
2,256 171,597 1,976 150,299 3,630 276,107
1,368 190,152 1,184 164,576 1,973 274,247
15,085 617,542 12,908 528,421 21,786 891,864
7,045 74,082 5,717 60,118 9,883 103,926
1,781 91,721 1,460 75,190 2,537 130,656
6,727 171,959 5,779 147,726 9,785 250,129
603 21,105 507 17,745 920 32,200
3,282 73,435 2,923 65,402 4,727 105,767
1,563 98,957 1,328 84,079 2,218 140,427
1,695 61,550 1,436 52,145 2,370 86,061
6,005 145,246 5,016 121,324 8,574 207,384
</TABLE>
--------------------
51
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Pall Corp 183 $ 3,832 1,087 $ 22,759
Parker-Hannifin Corp 158 7,367 987 46,019
Peco Energy Co 322 6,360 1,988 39,263
Pennzoil 132 8,836 438 29,319
Peoples Energy Corp 63 2,276 360 13,005
PG & E Corp 1,056 31,878 3,920 118,335
Pharmacia & Upjohn Inc 837 33,114 4,470 176,844
Phelps Dodge Corp 76 4,826 540 34,290
Phillips Petroleum Co 419 20,531 2,379 116,571
Placer Dome Inc 353 4,545 2,124 27,347
PNC Bank Corp 519 28,805 2,725 151,237
Polaroid Corp 34 1,558 437 20,020
Potlatch Corp 102 4,418 245 10,612
PPG Industries Inc 305 19,768 1,564 101,367
Praxair Inc 218 10,423 1,291 61,726
Progressive Corp 85 9,849 650 75,319
Providian Financial Corp 156 8,847 788 44,719
Public Service Ent Group Inc 388 12,513 2,035 65,629
Pulte Corp 50 2,275 237 10,784
Raytheon Co Class A 358 20,776 971 56,341
Raytheon Co Class B 384 22,584 2,073 121,918
Republic New York Corp 102 12,342 491 59,411
Reynolds Metals Co 159 9,908 606 37,761
Rite Aid Corp 218 7,058 1,978 64,038
Rockwell International Corp 320 19,360 1,879 113,680
Rohm & Haas Co 71 7,238 535 54,537
Rubbermaid Inc 162 4,698 1,229 35,641
Russell Corp 75 2,034 298 8,083
Ryder System 139 5,100 687 25,204
Safeco Corp 276 14,473 1,208 63,345
Safety Kleen 78 2,091 491 13,165
Scientific Atlanta Inc 85 1,488 684 11,970
Seagate Technology Inc* 397 9,652 2,179 52,977
Seagrams Co Ltd 644 24,472 3,275 124,450
Sears Roebuck & Co 708 37,568 3,505 185,984
Service Corp International 409 15,491 2,218 84,007
Sherwin Williams Co 261 8,727 1,519 50,792
Sigma Aldrich Corp 228 9,006 898 35,471
Silicon Graphics* 284 4,278 1,549 23,332
Snap-On Inc 138 5,865 577 24,523
Sonat Inc 132 5,693 736 31,740
Southern Co 1,215 29,995 6,070 149,853
Springs Indust Inc 33 1,846 195 10,908
Sprint Corp 695 45,870 3,523 232,518
St Jude Medical Inc* 152 5,548 796 29,054
</TABLE>
- --------------------
52
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,550 $ 53,391 2,123 $ 44,450 3,843 $ 80,463
2,208 102,948 1,938 90,359 3,209 149,620
4,507 89,013 3,730 73,668 6,287 124,168
932 62,386 887 59,374 1,384 92,641
674 24,348 582 21,025 1,141 41,219
8,784 265,167 7,826 236,247 12,672 382,536
10,084 398,948 8,754 346,330 14,658 579,907
1,195 75,883 1,038 65,913 1,712 108,712
5,246 257,054 4,475 219,275 7,604 372,596
4,869 62,688 4,118 53,019 6,778 87,267
6,122 339,771 5,191 288,100 8,770 486,735
906 41,506 747 34,222 1,402 64,229
540 23,389 432 18,711 865 37,465
3,543 229,631 3,091 200,335 5,121 331,905
3,140 150,131 2,692 128,711 4,500 215,156
1,469 170,220 1,348 156,200 2,061 238,818
1,902 107,938 1,696 96,248 2,697 153,055
4,644 149,769 4,016 129,516 6,664 214,914
393 17,881 321 14,606 633 28,802
2,120 122,960 1,785 103,549 3,141 182,178
6,800 399,925 5,823 342,465 9,751 573,481
1,090 131,890 902 109,142 1,599 193,479
1,504 93,718 1,306 81,380 2,154 134,221
5,032 162,911 4,204 136,105 7,206 233,294
4,164 251,922 3,548 214,654 6,051 366,085
1,260 128,441 1,033 105,301 1,772 180,633
3,051 88,479 2,510 72,790 4,226 122,554
752 20,398 721 19,557 1,106 30,000
1,567 57,489 1,303 47,804 2,160 79,245
2,807 147,192 2,498 130,989 4,023 210,956
1,136 30,459 1,016 27,242 1,831 49,094
1,559 27,283 1,265 22,137 2,454 42,945
4,913 119,447 4,238 103,036 6,966 169,361
7,186 273,068 6,140 233,320 10,329 392,502
7,787 413,198 6,726 356,898 11,275 598,280
5,112 193,617 4,446 168,392 7,309 276,828
3,462 115,761 2,918 97,571 4,970 166,184
2,049 80,935 1,719 67,901 2,869 113,325
3,639 54,812 3,078 46,362 5,561 83,763
1,261 53,592 1,087 46,198 1,708 72,590
1,760 75,900 1,474 63,566 3,126 134,809
13,855 342,045 11,851 292,572 19,965 492,886
403 22,543 319 17,844 650 36,359
8,530 562,980 7,339 484,374 12,381 817,146
1,835 66,977 1,534 55,991 2,735 99,827
</TABLE>
--------------------
53
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
St Paul Cos 127 $ 11,255 755 $ 66,912
Stone Container Corp* 87 979 850 9,562
Summit BanCorp 704 34,980 1,655 82,233
Sun Co Inc 115 4,593 658 26,279
Sunamerica Inc 909 41,189 1,633 73,995
Suntrust Banks Inc 339 25,001 1,872 138,060
Supervalu Inc 78 3,715 543 25,860
Tandy Corp 226 10,057 895 39,828
Temple Inland Inc 149 8,884 485 28,918
Tenet Healthcare Corp* 524 19,552 2,682 100,072
Tenneco Inc 278 11,433 1,540 63,332
Texaco Inc 942 52,575 4,786 267,119
Texas Utilities Co 451 18,237 2,164 87,507
Textron Inc 267 20,008 1,469 110,083
The Pep Boys 59 1,512 599 15,349
Thermo Electron Corp* 239 9,799 1,336 54,776
Thomas & Betts Corp 68 3,855 454 25,736
Time Warner Inc 987 66,623 4,698 317,115
Times Mirror Co 152 9,358 859 52,882
Timken Co 102 3,290 600 19,350
Torchmark Corp 262 12,199 1,197 55,735
Toys "R" Us Inc Holding Co* 471 12,364 2,521 66,176
Transamerica Corp 76 8,849 542 63,109
Travelers Property Casualty 1,873 104,420 9,565 533,249
Tricon Global Restaurants
Inc* 226 6,413 1,275 36,178
TRW Inc 231 12,662 1,060 58,101
Unicom Corp 408 13,082 1,944 62,330
Union Camp Corp 75 4,481 644 38,479
Union Carbide Corp 245 11,377 1,071 49,735
Union Pacific Corp 468 23,868 2,239 114,189
Union Pacific Resources
Group 332 7,429 2,058 46,048
Unisys Corp* 280 5,005 1,592 28,457
United Healthcare Corp 297 18,024 1,639 99,467
United States Surgical Corp 152 4,655 699 21,407
United Technologies 406 36,261 2,001 178,714
Unocal Corp 384 14,472 2,091 78,805
Unum Corp 272 13,991 1,256 64,606
USF & G Corp 179 4,374 1,002 24,486
USX-Marathon Group 515 17,800 2,520 87,098
USX-US Steel Group Inc 136 4,777 790 27,749
U.S. West Inc 864 44,982 4,241 220,797
U.S. West Media Group* 1,020 32,831 5,340 171,881
VF Corp 130 6,199 1,211 57,750
Viacom Inc* 587 28,176 3,110 149,280
Wachovia Corp 612 48,654 1,744 138,648
</TABLE>
- --------------------
54
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,627 $ 144,193 1,456 $ 129,038 2,409 $ 213,498
2,014 22,657 1,479 16,639 3,054 34,358
3,058 151,920 2,971 147,622 5,018 249,307
1,413 56,432 1,226 48,963 1,987 79,356
3,897 176,583 3,290 149,078 5,599 253,705
4,154 306,357 3,576 263,730 6,043 445,671
1,194 56,864 1,044 49,721 1,718 81,820
2,122 94,429 1,717 76,406 2,958 131,631
1,141 68,032 959 57,180 1,635 97,487
6,083 226,972 5,254 196,040 8,820 329,096
3,453 142,005 2,847 117,083 4,842 199,127
10,972 612,375 9,433 526,479 15,803 882,005
4,958 200,489 4,236 171,293 7,086 286,540
3,286 246,245 2,844 213,122 4,768 357,302
1,272 32,595 1,009 25,856 1,960 50,225
3,066 125,706 2,546 104,386 4,371 179,211
1,110 62,923 973 55,157 1,554 88,092
11,119 750,533 9,587 647,123 16,146 1,089,855
1,774 109,212 1,639 100,901 2,521 155,199
1,240 39,990 1,078 34,766 1,784 57,534
2,806 130,654 2,418 112,588 4,044 188,299
5,770 151,463 4,917 129,071 8,113 212,966
1,299 151,252 1,044 121,561 1,787 208,074
22,913 1,277,400 19,704 1,098,506 33,141 1,847,611
3,075 87,253 2,587 73,406 4,267 121,076
2,460 134,839 2,140 117,299 3,503 192,008
4,387 140,658 3,684 118,118 6,157 197,409
1,374 82,097 1,151 68,772 2,001 119,560
2,504 116,279 2,179 101,187 3,554 165,039
4,905 250,155 4,258 217,158 7,135 363,885
5,133 114,851 4,322 96,705 7,193 160,943
3,511 62,759 3,000 53,625 4,991 89,214
3,729 226,304 3,247 197,052 5,462 331,475
1,465 44,866 1,276 39,078 2,342 71,724
4,657 415,928 4,040 360,823 6,710 599,287
4,985 187,872 4,166 157,006 7,044 265,471
2,774 142,688 2,391 122,987 3,959 203,641
2,206 53,909 1,858 45,405 3,192 78,005
5,839 201,810 5,066 175,094 8,357 288,839
1,764 61,961 1,494 52,477 2,492 87,531
9,630 501,362 8,302 432,223 13,923 724,866
12,084 388,954 10,397 334,653 17,485 562,798
2,454 117,025 2,031 96,853 3,491 166,477
7,102 340,896 6,039 289,872 10,180 488,640
4,095 325,552 3,538 281,271 5,928 471,276
</TABLE>
--------------------
55
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Waste Management Inc 741 $ 18,525 3,993 $ 99,825
Wells Fargo & Co 156 50,232 674 217,028
Wendy's International Inc 211 4,576 1,170 25,374
Western Atlas Inc* 134 10,176 445 33,792
Westvaco Corp 206 6,695 932 30,290
Weyerhaeuser Co 369 18,427 1,719 85,843
Whirlpool Corp 83 5,545 705 47,103
Willamette Industries Inc 219 8,089 1,020 37,676
Williams Co Inc 588 19,220 2,896 94,663
Winn Dixie 166 8,954 1,209 65,210
Worldcom Inc* 1,544 58,962 8,091 308,975
Worthington Indust 137 2,346 897 15,361
------------ ------------
TOTAL LARGE CAP VALUE STOCKS
- VALUE $ 6,813,641 $ 32,750,464
- COST $ 5,421,410 $ 24,333,200
MEDIUM CAP GROWTH STOCKS
PERCENT OF NET ASSETS 1.89% 2.41%
Accustaff Inc* -- $ -- 900 $ 25,425
Adaptec Inc* 500 13,219 1,100 29,081
ADC Telecommunications* 672 17,346 1,260 32,524
Adtran Inc* 100 2,988 200 5,975
Advanced Fibre
Communication* -- -- 500 14,969
Agouron Pharmaceuticals Inc* -- -- 300 11,063
Airgas Inc* 400 7,175 500 8,969
Altera Corp* 420 18,113 820 35,363
America Online Inc* 400 48,450 900 109,013
American Power Conversion* 300 8,700 780 22,620
Analog Devices Inc* 801 25,832 1,526 49,214
Apollo Group Inc* -- -- 300 12,713
Ascend Communications Inc* 750 28,078 1,800 67,388
At Home Corp* -- -- 200 6,825
Atmel Corp* 662 10,758 1,060 17,225
AVX Corp 300 6,769 200 4,513
Bed Bath & Beyond Inc* 200 8,637 400 17,275
Betzdearborn Inc 96 6,162 240 15,405
Biogen Inc* 418 18,444 660 29,123
BMC Software Inc* 512 39,168 980 74,970
Boston Properties Inc -- -- 400 13,600
Cadence Design Systems Inc* 964 33,680 1,924 67,220
Callaway Golf Co 296 9,546 680 21,930
Cambridge Technology
Partners Inc* -- -- 400 18,200
Camco International Inc -- -- 300 17,550
Catellus Development Corp* -- -- 700 12,688
CDW Computer Centers Inc* -- -- 100 6,850
Centocor Inc* 346 12,478 640 23,080
</TABLE>
- --------------------
56
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
9,156 $ 228,900 7,864 $ 196,600 13,148 $ 328,700
1,775 571,550 1,624 522,928 2,473 796,306
2,634 57,125 2,263 49,079 3,751 81,350
1,078 81,861 931 70,698 1,593 120,968
2,103 68,348 1,707 55,477 2,874 93,405
3,999 199,700 3,441 171,835 5,792 289,238
1,460 97,546 1,298 86,723 2,149 143,580
2,262 83,553 1,858 68,630 3,176 117,313
6,392 208,939 5,504 179,912 9,184 300,202
2,958 159,547 2,505 135,113 4,266 230,097
18,375 701,695 15,480 591,142 29,421 1,123,514
1,935 33,137 1,489 25,499 2,792 47,813
------------ ------------ ------------
$ 76,367,777 $ 65,662,817 $110,593,452
$ 55,492,283 $ 47,052,490 $ 88,743,056
3.08% 3.88% 4.93%
1,600 $ 45,200 1,600 $ 45,200 3,400 $ 96,050
2,400 63,450 2,000 52,875 4,300 113,681
2,896 74,753 2,316 59,782 5,020 129,579
200 5,975 300 8,963 700 20,912
900 26,944 900 26,944 1,900 56,881
500 18,438 500 18,438 1,100 40,563
600 10,762 900 16,144 2,100 37,669
1,836 79,178 1,596 68,828 3,380 145,762
1,900 230,137 1,700 205,913 3,800 460,275
1,494 43,326 1,409 40,861 3,060 88,740
3,138 101,201 2,861 92,267 6,229 200,885
600 25,425 500 21,188 1,000 42,375
3,500 131,031 3,210 120,174 7,060 264,309
-- -- 300 10,238 600 20,475
1,866 30,323 1,888 30,680 3,926 63,797
400 9,025 400 9,025 900 20,306
800 34,550 800 34,550 1,700 73,419
527 33,827 507 32,543 1,105 70,927
1,282 56,568 1,222 53,921 2,590 114,284
2,132 163,098 1,852 141,678 4,080 312,120
700 23,800 600 20,400 1,500 51,000
3,850 134,509 3,490 121,932 7,730 270,067
1,458 47,021 1,256 40,506 2,616 84,366
700 31,850 600 27,300 1,400 63,700
600 35,100 600 35,100 1,300 76,050
1,400 25,375 1,300 23,563 2,800 50,750
-- -- 100 6,850 300 20,550
1,381 49,802 1,266 45,655 2,620 94,484
</TABLE>
--------------------
57
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Central Newspapers Class A -- $ -- 200 $ 14,288
Chancellor Media Corp* -- -- 800 35,800
Chiron Corp* 496 9,517 892 17,115
CIENA Corp* -- -- 500 20,969
Cintas Corp 420 17,850 600 25,500
Citrix Systems Inc* -- -- 350 14,722
Coca-Cola Co 1,036 34,253 2,130 70,423
Cognex Corp* -- -- 300 7,219
Coltec Industries* 200 5,213 500 13,031
Comair Holdings Inc -- -- 600 15,975
CompUSA Inc* -- -- 900 31,500
Compuware Corp* 600 25,275 1,500 63,188
Concord EFS Inc* -- -- 600 18,675
ContiFinancial Corp* -- -- 100 2,713
Cooper Cameron Corp* -- -- 500 26,813
Corporate Express Inc* 650 6,581 1,050 10,631
Corrections Corp Of America* 400 15,300 700 26,775
Crompton & Knowles Corp 450 13,556 740 22,293
Cytec Industries Inc* 100 4,888 300 14,663
Danaher Corp 200 14,388 280 20,143
Dentsply International Inc 400 12,400 400 12,400
Dial Corp 136 3,222 1,080 25,583
Diamond Offshore Driling Inc 400 18,125 600 27,188
Diebold Inc 366 18,803 635 32,623
Dole Food Co 246 13,361 410 22,268
Dollar General Corp 412 19,004 993 45,802
Dollar Tree Stores Inc* -- -- 200 8,675
Dura Pharmaceuticals Inc* -- -- 500 12,563
Electronic Arts Inc* 300 13,238 600 26,475
Electronic Data Systems Corp 1,488 65,193 3,330 145,896
Electronics for Imaging Inc* 400 8,825 500 11,031
Ensco International Inc 700 20,388 1,300 37,863
Estee Lauder Co Class A 200 11,700 200 11,700
Etec Systems Inc* -- -- 200 10,488
EVI Inc* -- -- 300 14,719
Excel Communications Inc* 400 8,425 600 12,638
Fastenal Co 100 4,388 300 13,163
Federal Signal Corp 498 11,703 490 11,515
First Health Group Corp* 284 14,147 290 14,446
First Tennessee National
Corp 616 19,635 1,280 40,800
Firstplus Financial Group* -- -- 300 9,900
Flowers Industries Inc 509 12,948 720 18,315
Flowserve Corp -- -- 400 12,675
FORE Systems Inc* 400 6,425 900 14,456
Foundation Health Systems* 491 13,595 926 25,639
</TABLE>
- --------------------
58
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
400 $ 28,575 300 $ 21,431 700 $ 50,006
1,400 62,650 1,400 62,650 3,800 170,050
1,624 31,160 1,600 30,700 3,252 62,398
1,000 41,938 900 37,744 1,900 79,681
1,140 48,450 1,030 43,775 2,380 101,150
750 31,547 750 31,547 1,500 63,094
4,264 140,979 3,844 127,092 8,465 279,874
700 16,844 600 14,438 1,300 31,281
700 18,244 900 23,456 1,800 46,913
1,200 31,950 1,000 26,625 2,100 55,913
1,900 66,500 1,600 56,000 3,400 119,000
2,900 122,163 2,700 113,738 6,700 282,238
1,100 34,238 1,000 31,125 2,200 68,475
-- -- 200 5,425 300 8,138
800 42,900 800 42,900 1,800 96,525
1,950 19,744 1,850 18,731 3,900 39,488
1,400 53,550 1,300 49,725 2,900 110,925
1,585 47,748 1,270 38,259 2,830 85,254
600 29,325 600 29,325 1,300 63,538
662 47,623 622 44,745 1,280 92,080
600 18,600 800 24,800 1,600 49,600
1,641 38,871 1,828 43,301 3,908 92,571
1,400 63,438 1,200 54,375 2,500 113,281
1,509 77,525 1,191 61,188 2,655 136,401
1,008 54,747 868 47,143 1,825 99,120
2,165 99,861 1,856 85,608 3,957 182,517
500 21,688 400 17,350 900 39,038
1,000 25,125 800 20,100 1,700 42,713
1,000 44,125 1,000 44,125 2,200 97,075
6,691 293,149 6,476 283,730 13,400 587,088
1,000 22,063 1,000 22,063 2,000 44,125
2,900 84,463 2,400 69,900 5,200 151,450
400 23,400 400 23,400 800 46,800
400 20,975 300 15,731 700 36,706
600 29,438 600 29,438 1,300 63,781
1,300 27,381 1,100 23,169 2,300 48,444
600 26,325 500 21,937 1,100 48,263
807 18,965 802 18,847 1,780 41,830
816 40,647 596 29,688 1,265 63,013
2,640 84,150 2,400 76,500 5,360 170,850
500 16,500 500 16,500 1,200 39,600
1,318 33,527 1,336 33,985 2,815 71,607
900 28,519 800 25,350 1,600 50,700
1,800 28,913 1,500 24,094 3,200 51,400
1,954 54,101 1,713 47,429 3,541 98,041
</TABLE>
--------------------
59
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Franklin Resources Inc 788 $ 40,188 1,600 $ 81,600
Galileo International Inc -- -- 400 15,800
Gartner Group Inc Class A* 200 7,975 500 19,938
Gateway 2000 Inc* 400 17,600 700 30,800
General Nutrition Co Inc* 400 15,900 800 31,800
Global Marine Inc* 700 16,231 1,400 32,463
GTech Holdings Corp* 100 3,531 300 10,594
Gulfstream Aerospace Corp* -- -- 400 16,200
Harley-Davidson Inc 736 21,344 1,500 43,500
Health Care & Retirement
Corp* 150 6,581 400 17,550
Health Management Associates
Inc Class A* 575 15,992 1,375 38,242
Hearst-Argyle Television
Inc* -- -- 500 17,563
HON Industries Inc 153 10,060 270 17,753
Hubbell Inc Class B 332 16,725 566 28,512
I2 Technologies Inc* -- -- 100 5,656
ICN Pharmaceuticals Inc 200 11,550 404 23,331
Illinois Central Corp 411 15,952 590 22,899
Immunex Corp* -- -- 200 11,825
Informix Corp* 1,390 10,859 1,320 10,313
International Game
Technology 497 12,052 1,100 26,675
Interstate Bakeries Corp -- -- 400 13,400
Intuit Inc* 200 9,300 400 18,600
Iomega Corp* 1,200 10,950 2,400 21,900
Jabil Circuit Inc* -- -- 100 5,263
JD Edwards & Co* -- -- -- --
Jefferson Smurfit Corp* 700 10,456 600 8,963
Jones Apparel Group Inc* 200 11,000 300 16,500
Keane Inc* -- -- 700 32,550
Knoll Inc* -- -- 100 3,563
Kohls Corp* 286 22,934 620 49,716
La Quinta Inns Inc 400 8,500 650 13,812
Lancaster Colony Corp 207 9,108 290 12,760
Lattice Semiconductor Corp* -- -- 200 10,713
Leggett & Platt Inc 458 22,986 900 45,169
Lexmark International Group
Class A* -- -- 500 21,375
LIN Television Corp* 200 11,025 100 5,513
Lincare Holdings Inc* -- -- 100 6,491
Linear Technology Corp 386 29,240 720 54,540
Lyondell PetroChemical 176 4,796 380 10,355
Manpower Inc 400 16,875 800 33,750
Maxim Integrated Products
Inc* 600 24,225 1,200 48,450
McCormick & Co Inc 288 8,262 600 17,213
Medpartners Inc* 710 8,520 1,489 17,868
Meritor Automotive Inc 70 1,750 730 18,250
Microchip Technology Inc* 400 9,675 500 12,094
</TABLE>
- --------------------
60
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3,188 $ 162,588 2,939 $ 149,889 6,395 $ 326,145
800 31,600 600 23,700 1,400 55,300
1,000 39,875 800 31,900 1,800 71,775
1,400 61,600 1,200 52,800 2,600 114,400
1,600 63,600 1,500 59,625 3,200 127,200
3,115 72,229 2,600 60,288 5,800 134,488
500 17,656 600 21,188 1,300 45,906
900 36,450 700 28,350 1,600 64,800
3,018 87,522 2,788 80,852 5,980 173,420
750 32,906 700 30,712 1,550 68,006
3,075 85,523 2,600 72,313 5,587 155,389
-- -- 900 31,613 1,900 66,738
484 31,823 454 29,850 935 61,476
1,008 50,778 1,034 52,088 2,202 110,926
-- -- 100 5,656 200 11,313
708 40,887 707 40,829 1,640 94,710
1,135 44,052 1,015 39,395 2,202 85,465
400 23,650 300 17,738 700 41,388
3,118 24,359 2,138 16,703 5,180 40,469
2,172 52,671 2,017 48,912 4,345 105,366
800 26,800 700 23,450 1,600 53,600
800 37,200 700 32,550 1,500 69,750
4,400 40,150 4,100 37,413 8,800 80,300
300 15,788 200 10,525 500 26,313
-- -- -- -- 900 29,700
1,400 20,913 1,100 16,431 2,300 34,356
600 33,000 600 33,000 1,400 77,000
1,200 55,800 1,200 55,800 2,700 125,550
-- -- 200 7,125 400 14,250
1,304 104,565 1,208 96,867 2,558 205,120
1,500 31,875 1,100 23,375 2,400 51,000
705 31,020 660 29,040 1,292 56,848
500 26,781 400 21,425 900 48,206
1,874 94,051 1,584 79,497 3,430 172,143
1,000 42,750 1,000 42,750 2,100 89,775
300 16,538 200 11,025 400 22,050
300 19,472 300 19,472 600 38,944
1,500 113,625 1,410 106,808 3,050 231,038
817 22,263 692 18,857 1,545 42,101
1,700 71,719 1,400 59,062 3,100 130,781
2,400 96,900 2,200 88,825 4,800 193,800
1,355 38,872 1,005 28,831 2,155 61,822
3,020 36,240 2,552 30,624 5,362 64,344
1,418 35,450 1,232 30,800 4,310 107,750
1,100 26,606 950 22,978 2,000 48,375
</TABLE>
--------------------
61
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Micron Electronics Inc* -- $ -- 200 $ 2,575
Miller (Herman) Inc 238 14,577 420 25,725
Molex Inc 316 9,559 396 11,979
Molex Inc Class A 312 8,853 678 19,238
Money Store Inc 400 9,975 400 9,975
Morrison Restaurants Inc 96 270 50 141
Mylan Laboratories 603 12,286 1,270 25,876
Nabors Industries Inc* 600 13,725 900 20,588
Netscape Communications
Corp* 201 3,894 505 9,784
Network Associates Inc* 350 22,619 650 42,006
Newmont Gold Co 100 2,925 100 2,925
Nine West Group Inc* 200 5,500 300 8,250
Noble Affiliates Inc 338 13,182 530 20,670
Noble Drilling Corp* -- -- 1,200 34,050
Northwest Airlines Corp
Class A* 400 23,550 700 41,213
Novellus System Inc* 200 9,587 300 14,381
Omnicare Inc 300 11,100 800 29,600
Oxford Health Plans Inc* 500 8,594 700 12,031
Pacific Century Financial
Corp 748 16,129 1,820 39,244
Pairgain Technologies Inc* -- -- 500 10,063
Paychex Inc 485 25,038 927 47,856
Peoplesoft* 600 26,813 1,500 67,031
Pittston Brink's Group 323 12,476 420 16,223
Planet Hollywood
International* -- -- 200 2,013
Platinum Technology Inc* -- -- 600 15,225
Pogo Producing Co 300 8,419 300 8,419
Primedia Inc* -- -- 200 2,763
Promus Hotel Corp* 441 21,278 818 39,469
Qualcom Inc* 300 15,300 600 30,600
Quantum Corp* 500 12,563 1,100 27,638
Quintiles Transnational
Corp* 200 9,775 500 24,438
Qwest Communications
International Inc* -- -- 300 10,538
Rambus Inc* -- -- 100 4,475
Rational Software Corp* -- -- 900 12,150
Readers Digest Association
Inc 300 7,969 800 21,250
Republic Industries Inc* 1,500 35,438 3,200 75,600
Reynolds & Reynolds Inc 346 7,353 620 13,175
Robert Half International
Inc* 300 13,575 650 29,413
Ross Stores Inc -- -- 500 19,688
Rouse Co 400 13,300 600 19,950
RP Scherer Corp* 200 12,163 200 12,163
R&B Falcon Corp* 472 12,508 1,026 27,189
Safeway Inc* 998 34,805 2,054 71,633
Sanmina Corp* -- -- 100 7,969
SCI Sys Inc* 200 9,000 500 22,500
</TABLE>
- --------------------
62
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
400 $ 5,150 300 $ 3,863 500 $ 6,438
848 51,940 858 52,552 1,820 111,475
840 25,410 718 21,720 1,583 47,886
1,445 41,002 1,288 36,547 2,676 75,932
700 17,456 700 17,456 1,400 34,913
160 450 99 278 193 543
2,765 56,337 2,227 45,375 4,652 94,785
1,885 43,119 1,629 37,263 3,400 77,775
1,516 29,373 920 17,825 2,045 39,622
900 58,163 1,275 82,397 2,750 177,719
200 5,850 200 5,850 300 8,775
300 8,250 400 11,000 1,000 27,500
873 34,047 858 33,462 1,920 74,880
2,700 76,613 2,200 62,425 4,800 136,200
1,500 88,313 1,300 76,538 2,800 164,850
800 38,350 600 28,763 1,300 62,319
1,600 59,200 1,400 51,800 3,000 111,000
1,400 24,063 1,300 22,344 2,600 44,688
3,314 71,458 2,854 61,539 3,070 66,197
1,100 22,138 900 18,113 1,800 36,225
1,804 93,132 1,640 84,665 3,512 181,307
2,900 129,594 2,700 120,656 5,800 259,188
657 25,377 743 28,698 1,604 61,955
500 5,031 400 4,025 600 6,038
1,000 25,375 1,000 25,375 2,100 53,288
600 16,838 500 14,031 1,100 30,869
300 4,144 300 4,144 400 5,525
1,685 81,301 1,289 62,194 3,245 156,571
1,200 61,200 1,000 51,000 2,300 117,300
2,380 59,797 2,070 52,009 4,300 108,038
1,000 48,875 900 43,988 2,000 97,750
600 21,075 600 21,075 1,200 42,150
300 13,425 200 8,950 500 22,375
1,800 24,300 1,600 21,600 3,200 43,200
1,800 47,813 1,300 34,531 2,800 74,375
6,500 153,563 5,200 122,850 12,700 300,038
1,212 25,755 1,152 24,480 2,400 51,000
1,500 67,875 1,250 56,563 2,700 122,175
900 35,438 900 35,438 1,900 74,813
1,300 43,225 1,100 36,575 2,400 79,800
400 24,325 400 24,325 900 54,731
2,016 53,424 1,698 44,997 4,042 107,113
3,976 138,663 3,378 117,808 8,452 294,763
300 23,906 300 23,906 600 47,813
1,000 45,000 1,000 45,000 2,200 99,000
</TABLE>
--------------------
63
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LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Sealed Air Corp* 200 $ 13,462 400 $ 26,925
Security Dynamics Tech Inc* -- -- 300 10,688
SLM Holding Corp 750 30,984 1,700 70,231
Smith International Inc* 214 11,395 400 21,300
Solectron Corp* 500 24,188 1,000 48,375
Solutia Inc 143 3,906 1,146 31,300
Sonoco Products Co 388 15,011 877 33,929
Staples Inc* 894 18,886 1,696 35,817
Star Banc Corp 400 23,550 900 52,988
Starbucks Corp* 400 15,825 800 31,650
Steel Dynamics Inc* -- -- 300 5,700
Sterling Commerce Inc* 377 17,201 737 33,626
Stryker Corp 348 14,246 720 29,475
Sunbeam Corp 300 12,413 600 24,825
Sundstrand Corp 326 19,723 560 33,880
Sungard Data Sys Inc* 400 13,675 800 27,350
Sybron Corp* 600 16,388 900 24,581
Symantec* 378 9,521 600 15,113
Synopsys Inc* 400 13,975 600 20,963
T Rowe Price Assoc Inc 200 13,275 500 33,188
Tech Data Corp* -- -- 400 18,600
Teleport Communications Gp* 300 16,388 600 32,775
Teradyne Inc* 376 17,743 820 38,694
Thermo Instrument Systems* 250 8,781 156 5,488
Tidewater Inc 365 16,243 550 24,475
Tiffany & Co 126 5,922 300 14,100
Total System Services Inc 300 7,875 300 7,875
UCAR International Inc* 200 6,888 400 13,775
Unifi Inc 268 9,849 600 22,050
USA Waste Services Inc* 800 33,300 1,730 72,011
USG Corp* 200 10,925 300 16,387
Valspar 200 7,013 400 14,025
Vastar Resources Inc 200 7,438 200 7,438
Viad Corp 136 3,290 880 21,285
Viking Office Prods Inc* 400 8,800 900 19,800
Vitesse Semiconductor Corp* -- -- 300 15,234
Vornado Realty Trust 200 8,488 500 21,219
Watson Pharmaceutical Inc* 300 10,763 800 28,700
Western Digital* 700 12,775 900 16,425
Whitman Corp 64 1,140 877 15,622
Wisconsin Central Transport* 400 10,850 500 13,563
Witco Corp 316 12,581 580 23,091
Xilinx Inc* 247 10,837 700 30,712
Yahoo! Inc* -- -- 100 7,319
Zions BanCorp 400 17,200 700 30,100
------------ ------------
TOTAL MEDIUM CAP GROWTH
STOCKS
- VALUE $ 2,196,842 $ 5,016,199
- COST $ 1,467,215 $ 3,766,165
</TABLE>
- --------------------
64
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
906 $ 60,985 736 $ 49,542 1,600 $ 107,700
600 21,375 600 21,375 1,300 46,313
3,450 142,528 3,500 144,594 7,000 289,188
797 42,440 627 33,388 1,400 74,550
2,300 111,263 1,900 91,913 4,200 203,175
2,097 57,274 2,120 57,903 4,539 123,971
1,800 69,638 1,622 62,751 3,655 141,403
3,245 68,540 3,060 64,643 6,686 141,231
1,700 100,088 1,600 94,200 3,500 206,062
1,700 67,256 1,400 55,388 3,400 134,513
600 11,400 400 7,600 1,000 19,000
1,654 75,464 1,296 59,130 2,874 131,126
1,668 68,284 1,388 56,821 2,900 118,719
1,300 53,788 1,100 45,513 2,300 95,162
1,090 65,945 930 56,265 2,090 126,445
1,800 61,538 1,400 47,863 3,600 123,075
1,600 43,700 1,600 43,700 3,600 98,325
1,236 31,132 1,061 26,724 2,100 52,894
900 31,444 1,100 38,431 2,300 80,356
1,000 66,375 900 59,738 1,900 126,112
700 32,550 700 32,550 1,600 74,400
1,200 65,550 1,000 54,625 3,300 180,263
1,790 84,466 1,500 70,781 3,250 153,359
250 8,781 313 10,977 621 21,821
1,225 54,513 1,085 48,283 2,265 100,792
480 22,560 560 26,320 1,200 56,400
400 10,500 400 10,500 1,000 26,250
800 27,550 600 20,663 1,400 48,213
1,182 43,438 982 36,089 2,240 82,320
3,300 137,363 2,800 116,550 6,767 281,676
700 38,237 600 32,775 1,300 71,012
600 21,038 700 24,544 1,500 52,594
300 11,156 300 11,156 700 26,031
1,641 39,692 1,528 36,958 3,308 80,012
2,000 44,000 1,600 35,200 3,300 72,600
700 35,547 500 25,391 1,200 60,937
1,000 42,437 800 33,950 2,300 97,606
1,700 60,988 1,400 50,225 3,000 107,625
1,800 32,850 1,600 29,200 3,500 63,875
2,051 36,533 1,594 28,393 4,065 72,408
1,200 32,550 900 24,413 1,900 51,538
1,352 53,827 1,022 40,688 2,195 87,388
1,459 64,014 1,174 51,509 2,620 114,952
200 14,638 200 14,638 400 29,275
1,200 51,600 1,100 47,300 2,700 116,100
------------ ------------ ------------
$ 10,063,407 $ 9,068,784 $ 19,945,271
$ 7,048,684 $ 6,526,566 $ 15,978,457
</TABLE>
--------------------
65
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDIUM CAP VALUE STOCKS
PERCENT OF NET ASSETS 1.95% 2.56%
AFLAC Corp 696 $ 42,761 1,370 $ 84,169
AG Edwards Inc 382 16,068 830 34,912
AGCO Corp 300 8,438 600 16,875
Albemarle Corp 313 7,629 260 6,337
Alexander & Baldwin Inc 204 5,763 390 11,018
Alleghany Corp* 2 696 2 682
Allegiance Corp 81 2,825 628 21,902
Allmerica Financial Corp 124 7,626 230 14,145
Alumax Inc* 189 7,005 480 17,790
AMB Property Corp -- -- 100 2,350
AMBAC Inc 300 15,975 600 31,950
American Bankers Insurance
Group Inc -- -- 400 22,500
American Financial Group Inc 304 12,293 390 15,771
American National Insurance
Co 100 9,700 100 9,700
American Standard Co Inc* 200 8,900 500 22,250
American Water Works Co Inc 300 9,000 700 21,000
AMF Bowling Inc* -- -- -- --
AmSouth Bancorp 400 22,475 750 42,141
Arco Chemical Co 100 4,731 200 9,463
Arrow Electronics Inc* 386 12,859 792 26,383
Associates First Capital
Corp 300 24,000 600 48,000
Autoliv Inc 44 1,359 999 30,844
Avnet Inc 230 14,663 350 22,313
Barnes & Noble* 400 14,050 500 17,563
Bear Stearns Co Inc 500 23,313 1,055 49,189
Beckman Instruments Inc 94 4,547 250 12,094
Belo (A H) Corp 256 14,016 340 18,615
Bergen Brunswig Corp Class A 225 10,125 545 24,525
Beverly Enterprises Inc* 75 1,139 1,146 17,405
BJ Services Co* -- -- 700 24,063
Boise Cascade Office
Products Corp* -- -- 100 1,806
Borders Group Inc* -- -- 700 23,319
Bowater Inc 195 9,653 410 20,295
Cabot Corp 310 10,928 740 26,085
Calenergy Inc* 200 5,363 500 13,406
Cali Realty Corp -- -- 500 18,875
Capital One Financial Corp -- -- 100 6,719
Capstead Mortgage Corp -- -- 400 7,600
Carnival Corp Class A -- -- 1,400 82,425
CarrAmercia Realty Corp -- -- 400 11,900
CCB Financial Corp -- -- 200 21,725
Centura Banks Inc -- -- 300 21,263
Charter One Financial Inc 350 21,178 651 39,447
</TABLE>
- --------------------
66
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
3.29% 4.14% 5.23%
2,817 $ 173,069 2,537 $ 155,867 5,627 $ 345,709
1,825 76,764 1,565 65,828 3,337 140,363
1,300 36,563 1,100 30,938 2,300 64,688
412 10,042 432 10,530 986 24,034
814 22,996 809 22,854 1,580 44,635
104 35,478 104 35,478 204 69,578
1,230 42,896 1,098 38,293 2,307 80,457
379 23,309 372 22,878 803 49,385
773 28,649 793 29,391 1,770 65,601
-- -- 200 4,700 400 9,400
1,300 69,225 1,100 58,575 2,400 127,800
700 39,375 600 33,750 1,300 73,125
813 32,876 608 24,586 1,380 55,804
200 19,400 200 19,400 400 38,800
900 40,050 900 40,050 1,800 80,100
1,400 42,000 1,200 36,000 2,500 75,000
-- -- -- -- 500 12,000
1,500 84,281 1,350 75,853 2,950 165,753
200 9,463 300 14,194 600 28,388
1,698 56,565 1,520 50,635 3,250 108,266
1,400 112,000 1,200 96,000 2,600 208,000
2,269 70,055 1,833 56,594 4,010 123,809
714 45,518 659 42,011 1,515 96,581
1,000 35,125 800 28,100 1,800 63,225
2,209 102,995 1,969 91,805 4,283 199,695
450 21,769 505 24,429 1,080 52,245
714 39,091 644 35,259 1,340 73,365
1,086 48,870 875 39,375 1,950 87,750
2,100 31,894 2,042 31,013 4,300 65,306
1,400 48,125 1,200 41,250 2,800 96,250
800 14,450 200 3,613 400 7,225
1,200 39,975 1,200 39,975 2,600 86,613
852 42,174 707 34,997 1,675 82,913
1,372 48,363 1,332 46,953 2,790 98,348
900 24,131 800 21,450 2,400 64,350
1,000 37,750 800 30,200 2,000 75,500
100 6,719 100 6,719 300 20,156
800 15,200 700 13,300 1,500 28,500
2,400 141,300 2,500 147,188 5,400 317,925
900 26,775 800 23,800 1,700 50,575
300 32,588 300 32,588 600 65,175
500 35,438 500 35,438 1,000 70,875
1,402 84,952 1,171 70,955 2,438 147,727
</TABLE>
--------------------
67
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Circus Circus Entertainment
Inc* 629 $ 13,838 930 $ 20,460
Clayton Homes Inc 626 12,447 884 17,565
CNA Financial Corp* -- -- 100 14,394
CNF Transportation Inc 62 2,426 461 18,037
Comdisco Inc 324 13,507 568 23,658
Commerce Bancshares Inc 157 11,226 357 25,526
Compass Bancshares Inc 400 18,400 600 27,600
Consolidated Papers Inc 86 4,993 280 16,258
Continental Airlines Class
B* -- -- 500 25,125
Cox Communications Inc Class
A* 313 12,070 674 25,991
Cracker Barrel Old Country
Store Inc 249 10,069 610 24,667
Crescent Real Estate
Equities Co -- -- 1,000 34,063
Crestar Financial Corp 504 27,846 1,140 62,985
Cypress Semiconductor Corp* 800 7,550 840 7,928
Dean Foods Co 224 12,320 440 24,200
Deposit Guaranty Corp -- -- 400 22,175
Depuy Inc -- -- 200 5,388
Devon Energy Corp -- -- 200 6,813
Dime Bancorp Inc 500 15,250 1,200 36,600
Donaldson Lufkin & Jenrette
Inc -- -- 100 8,188
DST Systems Inc* 200 10,575 300 15,862
Duke Realty Investments -- -- 700 16,056
EEX Corp* 137 1,173 1,213 10,386
Enron Oil & Gas Co 300 6,412 600 12,825
Equitable Co Inc 400 20,925 800 41,850
Equity Office Properties -- -- 1,962 57,879
Equity Residential
Properties Trust 400 19,175 800 38,350
Everest Reinsurance Holdings
Inc 300 11,063 400 14,750
EW Scripps Co 100 5,306 200 10,613
Extended Stay America Inc* -- -- 600 8,400
Family Dollar Stores Inc 280 9,975 620 22,088
FDX Corp* 232 14,776 1,287 81,966
FelCor Suite Hotels Inc -- -- 300 10,763
Fina Inc Class A -- -- -- --
Finova Group Inc 200 11,000 500 27,500
First American Corp 400 19,150 600 28,725
First Commerce Corp 200 15,800 300 23,700
First Commercial Corp -- -- 310 20,479
First Empire State Corp -- -- -- --
First Hawaiian Inc 200 7,925 200 7,925
First Of America Bank Corp 421 32,668 915 71,045
First Security Corp 842 19,512 1,655 38,375
First Virginia Banks Inc 338 17,111 570 28,856
Firstar Corp 600 25,087 1,200 50,175
Firstmerit Corp 300 8,831 600 17,663
</TABLE>
- --------------------
68
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,122 $ 46,684 1,562 $ 34,364 3,295 $ 72,490
1,945 38,657 1,620 32,198 3,408 67,724
200 28,788 200 28,788 400 57,575
810 31,691 873 34,156 1,838 71,912
1,162 48,420 1,054 43,939 2,263 94,339
909 64,994 683 48,835 1,551 110,897
1,350 62,100 1,150 52,900 2,550 117,300
570 33,096 490 28,451 1,070 62,127
900 45,225 900 45,225 1,900 95,475
1,294 49,900 1,127 43,460 2,449 94,440
1,411 57,057 1,071 43,309 2,325 94,017
2,200 74,938 1,800 61,313 4,000 136,250
2,170 119,893 2,030 112,158 4,370 241,443
1,364 12,873 1,424 13,439 3,170 29,917
707 38,885 737 40,535 1,605 88,275
700 38,806 700 38,806 1,500 83,156
300 8,081 300 8,081 600 16,163
500 17,031 400 13,625 900 30,656
2,400 73,200 2,300 70,150 4,700 143,350
200 16,375 200 16,375 500 40,938
400 21,150 500 26,437 1,200 63,450
1,300 29,819 1,300 29,819 2,700 61,931
1,934 16,560 2,344 20,071 4,867 41,674
1,200 25,650 1,200 25,650 2,400 51,300
1,700 88,931 1,400 73,238 3,100 162,169
4,065 119,917 3,384 99,828 7,668 226,206
1,400 67,113 1,200 57,525 3,100 148,606
900 33,188 800 29,500 1,700 62,687
500 26,531 400 21,225 900 47,756
1,400 19,600 1,200 16,800 2,500 35,000
1,285 45,778 1,140 40,613 2,442 86,987
2,958 188,388 2,489 158,518 4,458 283,919
700 25,113 500 17,938 1,200 43,050
100 6,325 100 6,325 200 12,650
1,200 66,000 1,000 55,000 2,100 115,500
1,400 67,025 1,100 52,663 2,500 119,688
700 55,300 600 47,400 1,300 102,700
525 34,683 525 34,683 1,140 75,311
100 47,200 100 47,200 200 94,400
300 11,887 400 15,850 900 35,663
1,813 140,848 1,603 124,533 3,587 278,665
3,292 76,339 2,930 67,928 6,488 150,429
1,186 60,041 941 47,638 2,117 107,173
2,700 112,894 2,300 96,169 5,000 209,063
1,000 29,437 1,100 32,381 2,400 70,650
</TABLE>
--------------------
69
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Fiserv Inc* 217 $ 11,881 430 $ 23,542
Food Lion Inc Class A 1,100 11,103 1,700 17,159
Food Lion Inc Class B 1,400 13,825 1,800 17,775
Forest Labs Inc Class A* 182 11,386 370 23,148
Fred Myer Inc* -- -- 600 26,663
GATX Corp 123 9,533 270 20,925
General Motors Corp Class H 500 20,719 1,000 41,438
Genzyme Corp--General
Division* 326 9,637 320 9,460
Georgia Pacific Corp 137 3,125 893 20,372
Golden State Bancorp* -- -- 400 14,250
Greenpoint Financial Corp 200 14,850 400 29,700
Hanna (M A) Co 280 6,493 550 12,753
Hannaford Brothers Co 236 9,956 260 10,969
Harsco Corp 338 14,154 520 21,775
Hawaiian Electric Industries
Inc 192 7,776 340 13,770
Health & Retire Property
Trust 600 12,000 1,000 20,000
Hertz Corp Class A -- -- 200 7,925
Hibernia Corp Class A 600 12,000 1,400 28,000
Highwoods Properties Inc -- -- 500 17,406
Hillenbrand Industries Inc 300 16,856 500 28,094
Hormel Foods Corp 200 7,425 500 18,563
Host Marriott Corp* 800 15,850 1,700 33,681
HSB Group Inc 230 14,519 280 17,675
IBP Inc 432 9,639 920 20,527
Imation Corp* 276 4,640 516 8,675
IMC Global Inc 436 16,650 926 35,362
International Specialty
Products Inc* -- -- 200 3,188
IVAX Corp* 1,230 10,378 1,240 10,462
Jacor Communications Inc* -- -- 100 5,788
Johns Manville Corp -- -- 400 4,825
Kansas City Southern
Industries 543 20,193 1,110 41,278
Kelly Services Inc Class A 106 3,776 120 4,275
Keystone Financial Inc -- -- 500 20,938
Kimco Realty Corp 300 10,538 350 12,294
Lafarge Corp 300 10,069 300 10,069
Lam Research Corp* 300 8,512 300 8,512
Lear Corp* 200 10,575 500 26,437
Leucadia National Corp 200 7,550 400 15,100
Liberty Media Group-Class A* 1,279 35,093 2,908 79,775
Litton Industries Inc* 101 6,287 390 24,278
Loral Space &
Communications* 842 21,524 1,782 45,552
LTV Corp 900 10,856 1,100 13,269
Lubrizol Corp 329 12,687 560 21,595
MAPCO Inc 374 20,126 620 33,364
Mark IV Industries Inc 247 5,743 432 10,044
</TABLE>
- --------------------
70
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
999 $ 54,695 829 $ 45,388 1,895 $ 103,751
3,100 31,290 2,900 29,272 6,400 64,600
4,300 42,463 3,400 33,575 6,900 68,137
766 47,923 686 42,918 1,460 91,341
1,200 53,325 1,100 48,881 2,500 111,094
502 38,905 417 32,318 1,010 78,275
2,100 87,019 1,800 74,588 3,900 161,606
734 21,699 544 16,082 1,100 32,519
1,889 43,093 3,236 73,821 5,697 129,963
800 28,500 800 28,500 1,700 60,563
800 59,400 700 51,975 1,500 111,375
967 22,422 900 20,869 1,762 40,856
745 31,430 565 23,836 1,240 52,313
1,148 48,073 858 35,929 1,920 80,400
723 29,281 603 24,422 1,180 47,790
2,200 44,000 1,800 36,000 3,800 76,000
400 15,850 400 15,850 800 31,700
2,900 58,000 2,400 48,000 5,600 112,000
1,000 34,813 800 27,850 1,800 62,663
1,000 56,188 900 50,569 2,000 112,375
1,000 37,125 800 29,700 1,700 63,113
3,400 67,363 3,100 61,419 6,600 130,763
309 19,506 424 26,765 820 51,763
2,152 48,017 1,642 36,637 3,500 78,094
702 11,802 731 12,290 1,617 27,186
2,145 81,912 1,793 68,470 3,910 149,313
300 4,781 300 4,781 500 7,969
2,323 19,600 1,963 16,563 3,995 33,708
-- -- 200 11,575 400 23,150
600 7,238 600 7,238 1,000 12,063
2,295 85,345 1,955 72,702 4,280 159,163
289 10,296 219 7,802 885 31,528
900 37,688 900 37,688 2,000 83,750
450 15,806 600 21,075 1,300 45,663
500 16,781 500 16,781 1,100 36,919
500 14,188 500 14,187 1,200 34,050
1,000 52,875 800 42,300 1,800 95,175
900 33,975 700 26,425 1,600 60,400
4,181 114,702 5,489 150,591 11,838 324,805
808 50,298 603 37,537 1,379 85,843
3,812 97,444 3,174 81,135 7,066 180,625
1,900 22,919 2,000 24,125 4,000 48,250
1,217 46,931 1,042 40,182 2,300 88,694
1,236 66,512 976 52,521 2,200 118,388
870 20,228 762 17,717 1,675 38,944
</TABLE>
--------------------
71
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LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Marshall & Ilsley Corp 558 $ 32,713 1,040 $ 60,970
Martin Marietta Inc -- -- 100 3,806
McKesson Corp 400 20,850 700 36,487
McLeod Inc Class A* -- -- 300 11,691
Meditrust Co 481 14,791 721 22,171
MEMC Electronic Materials
Inc* 300 5,063 300 5,062
Mercantile Bankshares 454 15,904 735 25,748
Mercury General Corp 200 11,350 300 17,025
Metro-Goldwyn-Mayer Inc* -- -- 100 1,956
MGM Grand Inc* 200 7,225 200 7,225
Millenium Chemicals Inc 311 8,015 736 18,986
Murphy Oil Corp 293 14,632 380 18,976
Nabisco Holdings Corp Class
A 200 9,438 100 4,719
NCR Corp* 171 5,365 1,059 33,226
Neiman Marcus Group Inc* -- -- 200 7,438
New Plan Realty Trust 400 9,975 600 14,962
North Fork BanCorp Inc -- -- 600 20,513
Office Depot Inc* 538 14,795 1,350 37,125
Officemax Inc* 500 8,344 1,250 20,859
Ogden Corp 101 2,778 525 14,438
Ohio Casualty Corp 100 4,675 300 14,025
Old Kent Financial Corp 402 15,502 934 36,017
Old Republic International
Corp 350 14,766 750 31,641
Olin Corp 270 12,369 460 21,074
Olsten Corp 291 4,692 525 8,466
Outback Steakhouse Inc* 200 7,150 400 14,300
Outdoor Systems Inc* -- -- 600 17,888
PacifiCare Health Systems
Inc Class B* 174 10,875 195 12,188
Paine Webber Group Inc 500 21,000 1,000 42,000
Patriot American Hospitality
Inc -- -- 700 17,500
Payless Shoesource Inc* 217 14,593 411 27,640
Peoples Bank Bridgeport -- -- 200 7,513
Phycor Inc* 300 7,716 600 15,431
Pioneer Natural Resources Co 376 8,907 697 16,510
Precision Castparts Corp -- -- 200 11,088
Premark International Inc 461 14,349 606 18,862
Pride International Inc* -- -- 400 9,125
Proffitt's Inc* -- -- 500 16,938
Protective Life Corp 100 6,913 300 20,738
Provident Co Inc 294 10,584 632 22,752
Provident Financial Group -- -- 200 10,250
Public Storage Inc -- -- 700 21,569
Questar Corp 227 9,648 340 14,450
Quorum Health Group Inc* 150 4,158 350 9,702
Rayonier Inc 156 6,611 250 10,594
</TABLE>
- --------------------
72
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,103 $ 123,288 1,883 $ 110,391 4,120 $ 241,535
-- -- 200 7,613 300 11,419
1,600 83,400 1,400 72,975 2,900 151,163
600 23,381 500 19,484 1,300 50,659
1,621 49,846 1,201 36,931 3,440 105,780
400 6,750 400 6,750 800 13,500
1,219 42,703 1,262 44,209 2,720 95,285
400 22,700 500 28,375 1,100 62,425
-- -- 200 3,913 400 7,825
400 14,450 400 14,450 800 28,900
1,512 39,038 1,346 34,752 2,946 76,051
777 38,801 697 34,806 1,570 78,402
200 9,437 200 9,438 400 18,875
2,181 68,429 1,864 58,483 3,925 123,147
400 14,875 400 14,875 800 29,750
1,400 34,912 1,100 27,431 2,200 54,862
1,400 47,863 1,200 41,025 2,500 85,469
2,442 67,155 2,367 65,093 5,080 139,700
2,700 45,056 2,150 35,878 4,650 77,597
884 24,310 806 22,165 1,744 47,960
700 32,725 500 23,375 1,100 51,425
1,818 70,107 1,686 65,016 3,820 147,309
1,500 63,281 1,250 52,734 3,100 130,781
1,078 49,386 858 39,307 1,860 85,211
1,117 18,012 988 15,932 2,216 35,733
500 17,875 700 25,025 1,400 50,050
1,350 40,247 1,050 31,303 2,350 70,059
526 32,887 411 25,688 795 49,699
2,050 86,100 2,000 84,000 4,150 174,300
1,200 30,000 1,200 30,000 3,700 92,500
743 49,967 715 48,084 1,504 101,144
500 18,781 400 15,025 900 33,806
1,050 27,005 1,050 27,005 2,250 57,867
1,134 26,862 1,186 28,093 3,462 82,006
400 22,175 413 22,896 800 44,350
1,133 35,265 996 31,001 2,150 66,919
800 18,250 800 18,250 1,700 38,781
1,000 33,875 900 30,488 1,500 50,813
600 41,475 500 34,563 1,100 76,038
1,312 47,232 1,202 43,272 2,566 92,376
400 20,500 300 15,375 700 35,875
1,400 43,138 1,200 36,975 2,900 89,356
710 30,175 640 27,200 1,430 60,775
600 16,631 650 18,017 1,400 38,806
462 19,577 526 22,289 1,119 47,418
</TABLE>
--------------------
73
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LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Read-Rite Corp* 400 $ 5,700 500 $ 7,125
Regions Financial Corp 670 26,633 1,400 55,650
Reliance Group Holdings -- -- 700 11,900
Reliastar Financial Corp 400 19,025 900 42,806
RJR Holdings Group Inc 1,170 40,438 2,643 91,349
RPM Inc 472 8,024 858 14,586
Saks Holdings* 200 5,225 200 5,225
Seagull Energy Corp* 391 6,598 610 10,294
SEC Capital Pacific Trust 200 4,588 500 11,469
Shaw Inds 1,260 14,963 1,330 15,794
Simon Debartolo Group Inc 300 9,263 700 21,613
Southland Corp* 1,800 3,488 1,400 2,713
Southtrust Corp 707 28,878 1,395 57,021
Spieker Properties Inc -- -- 400 15,875
St Joe Corp 300 10,238 300 10,238
Starwood Lodging Trust 364 20,597 2,166 122,539
Sterling Software* 100 5,269 300 15,806
Stewart Enterprises Inc 250 11,781 450 21,206
Storage Technology Corp* 259 17,677 535 36,514
Stratus Computer Inc* 161 8,080 310 15,558
Sybase Inc* 700 7,350 700 7,350
Symbol Technologies Inc 190 9,702 315 16,085
TCF Financial Corp 400 13,225 900 29,756
Tele-Communications
International* 300 5,325 200 3,550
Tele-Communications TCI
Ventures Group Class A* 516 7,966 3,690 56,964
The PMI Group Inc 100 7,275 200 14,550
Thiokol Corp 116 11,092 200 19,125
TIG Holdings Inc 200 5,313 500 13,281
Tosco Corp 671 24,911 1,340 49,748
Transatlantic Holdings Inc 126 9,529 150 11,344
Transocean Offshore Inc 400 17,200 800 34,400
Travelers Property Casualty 100 4,100 100 4,100
Trinity Industries 322 16,181 440 22,110
Tyson Food Inc 591 11,525 890 17,355
UAL Corp* 300 25,538 600 51,075
UICI* -- -- 400 12,850
Ultramar Diamond Shamrock
Corp 410 14,635 855 30,513
Union Planters Corp 400 24,725 800 49,450
Union Texas Petroleum
Holdings 200 4,038 500 10,094
Unionbancal Corp 100 9,313 100 9,313
Unisource Worldwide Inc 94 1,281 665 9,061
United Asset Mgmt Corp 500 13,281 700 18,594
United Dominion Realty Trust -- -- 900 12,600
United Meridian Corp* -- -- 400 10,925
</TABLE>
- --------------------
74
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
600 $ 8,550 800 $ 11,400 1,700 $ 24,225
2,838 112,811 2,428 96,513 5,380 213,855
1,400 23,800 1,200 20,400 2,400 40,800
1,900 90,369 1,600 76,100 3,600 171,225
5,305 183,354 4,851 167,663 10,618 366,985
1,497 25,449 1,607 27,319 3,485 59,245
500 13,063 400 10,450 900 23,513
1,248 21,060 1,103 18,613 2,275 38,391
800 18,350 900 20,644 2,300 52,756
2,415 28,678 2,305 27,372 4,700 55,813
1,600 49,400 1,300 40,137 2,800 86,450
2,600 5,038 1,800 3,488 4,200 8,138
2,906 118,762 2,681 109,565 5,903 241,265
700 27,781 700 27,781 1,900 75,406
600 20,475 600 20,475 1,100 37,538
4,569 258,416 3,793 214,565 7,456 421,733
600 31,613 600 31,613 1,200 63,225
750 35,344 800 37,700 1,700 80,113
1,084 73,983 1,067 72,823 2,125 145,031
366 18,369 471 23,638 1,050 52,697
1,400 14,700 1,200 12,600 2,500 26,250
585 29,872 555 28,340 1,325 67,658
2,000 66,125 1,700 56,206 3,700 122,331
400 7,100 400 7,100 600 10,650
7,502 115,812 6,768 104,481 23,096 356,544
500 36,375 400 29,100 900 65,475
295 28,209 310 29,644 700 66,938
900 23,906 800 21,250 1,700 45,156
2,867 106,437 2,377 88,246 5,235 194,349
332 25,108 290 21,931 660 49,913
1,700 73,100 1,500 64,500 3,200 137,600
200 8,200 200 8,200 300 12,300
705 35,426 735 36,934 1,605 80,651
1,411 27,515 1,473 28,724 3,545 69,128
1,200 102,150 1,100 93,638 2,300 195,788
800 25,700 600 19,275 1,400 44,975
1,944 69,366 1,537 54,837 3,425 122,240
1,600 98,900 1,300 80,356 3,300 203,981
800 16,150 1,000 20,187 2,100 42,394
200 18,625 200 18,625 400 37,250
1,174 15,996 1,092 14,878 2,674 36,433
1,400 37,187 1,200 31,875 2,600 69,063
1,900 26,600 1,600 22,400 3,300 46,200
700 19,119 600 16,388 1,300 35,506
</TABLE>
--------------------
75
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Unitrin Inc 100 $ 6,912 300 $ 20,737
Universal Corp 181 8,598 400 19,000
USA Networks Inc* 261 13,454 365 18,772
U.S. Filter Corp* -- -- 800 27,150
U.S. Industries Inc 292 8,140 757 21,101
U.S. Office Products Co* -- -- 1,200 22,200
Valero Energy Corp 180 6,390 470 16,685
Varian Associates Inc 177 10,266 290 16,820
Vencor Inc* 500 14,344 700 20,081
Vishay Intertechnology Inc* 441 8,985 446 9,087
VLSI Technology* 200 3,863 400 7,725
Vulcan Materials Co 200 20,125 300 30,187
Wallace Computer Services 90 3,274 100 3,638
Warnaco Group Inc 300 11,138 500 18,563
Washington Federal Inc 312 8,630 553 15,288
Washington Post Co 27 13,325 100 49,350
Weatherford Enterra Inc* 400 13,850 500 17,313
Weingarten 200 8,925 200 8,925
Weismarkets Inc 200 7,038 100 3,519
Wellpoint Health Networks
Inc* -- -- 100 5,844
Wesco Financial Corp -- -- -- --
Westfield America Inc -- -- 100 1,788
Wheelabrator Technologies
Inc 700 11,419 700 11,419
Wilmington Trust Corp 192 11,880 310 19,181
York International Corp 202 8,875 420 18,454
------------ ------------
TOTAL MEDIUM CAP VALUE
STOCKS
- VALUE $ 2,260,555 $ 5,339,261
- COST $ 1,538,146 $ 3,899,622
MEDIUM CAP UTILITY STOCKS
PERCENT OF NET ASSETS 0.84% 0.38%
360 Communications Co* 1,525 $ 40,413 1,519 $ 40,254
AES Corp* 1,568 68,992 1,280 56,320
Allegheny Energy Inc 1,284 39,242 1,010 30,868
Century Telephone Enterprise 567 34,587 460 28,060
CMS Energy Corp 921 40,754 740 32,745
El Paso Natural Gas Co 427 28,342 456 30,267
Florida Progress Corp 1,015 39,268 800 30,950
Idaho Power Co 402 14,045 320 11,180
Illinova Corp 813 22,561 650 18,038
IPALCO Enterprises Inc 607 25,911 480 20,490
Kansas City Power & Light Co 667 20,093 530 15,966
KeySpan Energy Corp 510 18,137 400 14,225
LCI International Inc* 300 9,900 300 9,900
LG & E Energy Corp 728 17,427 560 13,405
MCN Corp 616 22,677 500 18,406
</TABLE>
- --------------------
76
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
600 $ 41,475 500 $ 34,563 1,100 $ 76,038
639 30,353 694 32,965 1,365 64,838
950 48,915 772 39,761 1,606 82,709
1,600 54,300 1,300 44,119 3,400 115,388
1,425 39,722 1,340 37,353 2,852 79,500
2,500 46,250 2,100 38,850 4,750 87,875
1,164 41,322 984 34,932 1,960 69,580
735 42,630 590 34,220 1,265 73,370
1,500 43,031 1,180 33,851 2,474 70,973
882 17,971 771 15,709 1,649 33,598
1,000 19,313 800 15,450 1,700 32,831
600 60,375 600 60,375 1,200 120,750
200 7,275 210 7,639 400 14,550
1,000 37,125 800 29,700 2,100 77,963
1,129 31,178 996 27,501 2,037 56,278
80 39,480 133 65,636 225 111,038
1,057 36,599 900 31,163 1,900 65,788
400 17,850 400 17,850 900 40,163
200 7,038 200 7,038 400 14,075
300 17,531 200 11,688 500 29,219
-- -- -- -- 100 36,400
-- -- 300 5,363 400 7,150
1,300 21,206 1,200 19,575 2,600 42,413
649 40,157 604 37,372 1,375 85,078
959 42,136 814 35,765 1,685 74,035
------------ ------------ ------------
$ 10,725,867 $ 9,683,062 $ 21,177,183
$ 7,635,097 $ 7,140,597 $ 16,667,092
0.45% 0.44% 0.27%
2,624 $ 69,536 2,128 $ 56,392 3,954 $ 104,781
2,296 101,024 1,596 70,224 1,500 66,000
1,809 55,288 1,319 40,312 1,230 37,592
828 50,508 588 35,868 565 34,465
1,314 58,144 954 42,214 885 39,161
842 55,888 627 41,617 778 51,640
1,434 55,478 1,039 40,196 980 37,914
585 20,438 415 14,499 385 13,451
1,153 31,996 843 23,393 780 21,645
882 37,650 627 26,765 577 24,631
955 28,769 690 20,786 645 19,431
719 25,569 514 18,279 490 17,426
600 19,800 500 16,500 900 29,700
992 23,746 732 17,522 690 16,517
930 34,236 670 24,664 600 22,088
</TABLE>
--------------------
77
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Midamerican Energy Co 451 $ 9,358 367 $ 7,615
Montana Power Co 563 18,016 460 14,720
National Fuel Gas Co 400 18,650 320 14,920
Natural Gas Clearinghouse
Inc -- -- 100 1,550
New Century Energies Inc 1,072 49,982 862 40,191
New England Electric System 695 29,277 560 23,590
New York State Electric &
Gas Corp 772 28,998 610 22,913
NEXTEL Communications Class
A* 1,068 31,573 880 26,015
NIPSCO Industries Inc 1,404 36,065 1,120 28,770
Northeast Utilities* 1,340 16,750 1,070 13,375
OGE Energy Corp 429 23,166 340 18,360
Pinnacle West Capital Corp 941 38,405 750 30,609
Potomac Electric Power 1,282 32,210 1,010 25,376
Puget Sound Power & Light 683 18,526 540 14,647
Scana Corp 1,026 29,498 820 23,575
Southern New England Telecom 687 43,367 550 34,719
Teco Energy 1,265 33,285 990 26,049
Telephone & Data System 566 24,656 450 19,603
Utilicorp United Inc 491 17,676 380 13,680
Wisconsin Energy Corp 1,148 31,283 920 25,070
------------ ------------
TOTAL MEDIUM CAP UTILITY
STOCKS
- VALUE $ 973,090 $ 796,421
- COST $ 656,857 $ 551,086
SMALL CAP GROWTH STOCKS
PERCENT OF NET ASSETS 0.23% 0.14%
APAC Teleservices Inc* 100 $ 1,475 200 $ 2,950
Arrow International Inc -- -- 100 3,913
Arterial Vascular
Engineering Co* -- -- 100 4,094
Aspect Telecommunication
Corp* -- -- 500 13,188
BJ's Wholesale Club Inc* 365 12,364 -- --
Broderbund Software Inc* 200 4,950 200 4,950
C-Cube Microsystems Inc* 100 2,075 300 6,225
Choice Hotels International
Inc* 59 885 505 7,575
Collins & Aikman Corp* -- -- -- --
Covance Inc* 90 1,940 581 12,497
Dal Tile International Inc* -- -- -- --
DSP Communications Inc* -- -- 500 8,844
Federal Mogul Corp 396 19,429 300 14,719
Freeport-McMoRan Sulphur
Inc* 74 1,036 76 1,064
GenCorp Inc -- -- -- --
General Semiconductor Inc* 37 516 260 3,624
Georgia Gulf Corp 237 7,806 360 11,858
Getchell Gold Corp* 24 447 259 4,824
Global DirectMail Corp* 200 4,325 200 4,325
Halter Marine Group Inc* 273 5,358 282 5,534
</TABLE>
- --------------------
78
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
680 $ 14,110 489 $ 10,147 -- $ --
824 26,368 584 18,688 540 17,280
582 27,136 412 19,210 385 17,951
1,600 24,800 -- -- 3,200 49,600
1,535 71,569 1,122 52,313 1,029 47,977
1,008 42,462 718 30,246 690 29,066
1,087 40,830 787 29,562 740 27,796
1,588 46,945 1,101 32,548 1,025 30,302
2,030 52,146 1,480 38,017 1,350 34,678
1,916 23,950 1,386 17,325 1,290 16,125
612 33,048 442 23,868 415 22,410
1,334 54,444 974 39,751 905 36,935
1,806 45,376 1,316 33,064 1,230 30,904
971 26,338 706 19,150 655 17,767
1,446 41,573 1,036 29,785 980 28,175
975 61,547 710 44,819 680 42,925
1,789 47,073 1,284 33,785 1,220 32,101
827 36,026 587 25,571 565 24,613
675 24,300 494 17,784 472 16,992
1,645 44,826 1,175 32,019 1,105 30,111
------------ ------------ ------------
$ 1,452,937 $ 1,036,883 $ 1,090,150
$ 975,133 $ 705,233 $ 775,723
0.19% 0.19% 0.17%
400 $ 5,900 400 $ 5,900 600 $ 8,850
-- -- -- -- 200 7,825
-- -- -- -- -- --
-- -- -- -- 1,100 29,013
497 16,836 367 12,432 -- --
200 4,950 200 4,950 500 12,375
300 6,225 400 8,300 700 14,525
1,105 16,575 807 12,105 1,217 18,255
-- -- -- -- 400 3,150
1,030 22,140 878 18,866 1,546 33,239
-- -- -- -- 200 2,263
-- -- 600 10,613 1,000 17,688
553 27,132 398 19,527 380 18,644
144 2,016 75 1,050 143 2,002
485 13,216 -- -- -- --
594 8,279 459 6,397 1,164 16,223
745 24,538 465 15,316 640 21,080
222 4,135 458 8,530 646 12,032
300 6,488 200 4,325 400 8,650
369 7,242 330 6,476 630 12,364
</TABLE>
--------------------
79
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Health Care Property
Investors Inc 300 $ 11,138 300 $ 11,138
Host Marriott Services Corp* 240 3,210 240 3,210
Houghton Mifflin Co 304 9,652 240 7,620
Interneuron Pharmaceuticals
Corp* -- -- 400 3,175
Kaydon Corp -- -- -- --
Lance Inc -- -- -- --
Land's End Inc* -- -- -- --
Lawter International Inc -- -- -- --
Lee Enterprises Inc 498 15,438 -- --
Macromedia Inc* 400 5,000 400 5,000
Magne Tek Inc* -- -- -- --
Mascotech Inc -- -- 300 6,225
MAXXAM Inc* -- -- -- --
Mid Atlantic Medical
Services* 400 4,700 500 5,875
Nordson Corp 214 10,406 160 7,780
Oakley Inc* 600 7,237 600 7,238
OEA Inc -- -- -- --
Omnipoint Corp* 200 5,600 300 8,400
Paging Network Inc* 500 7,250 600 8,700
Paymentech Inc* -- -- 100 1,650
Petsmart Inc* 1,200 9,150 1,300 9,913
Pixar Inc* -- -- 100 3,700
Presstek Inc* 200 5,075 400 10,150
Readers Digest Association
Inc 200 5,500 300 8,250
Richfood Holdings Inc -- -- 500 14,219
Rollins Inc 388 8,003 210 4,331
Sabre Group Holdings Inc* -- -- 200 6,600
Schweitzer-Mauduit
International 20 665 92 3,059
Siebel Systems Inc* -- -- 1 62
Sotheby's Inc 611 12,411 -- --
Southdown Inc 175 11,200 -- --
SPX Corp* 22 1,643 46 3,436
Structural Dynamics
Research* 303 8,711 -- --
Sunburst Hospitality Corp* 20 172 168 1,470
Superior Industries
International Inc 322 10,002 260 8,076
TCA Cable TV Inc 266 13,101 -- --
Teletech Holdings Inc* -- -- 100 956
Thermo Cardiosystems Inc* 150 3,750 250 6,250
Thermolase Corp* -- -- 100 813
Tootsie Roll Inds Inc 212 15,821 212 15,834
Transtexas Gas Corp* -- -- -- --
Vanguard Cellular Systems
Inc* 411 5,343 330 4,290
Varco International Inc* 584 14,527 -- --
West Teleservices* -- -- -- --
Williams-Sonoma Inc* -- -- -- --
</TABLE>
- --------------------
80
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
400 $ 14,850 500 $ 18,562 700 $ 25,988
380 5,082 320 4,280 680 9,095
460 14,605 310 9,843 890 28,258
0 -- 600 4,763 900 7,144
500 18,594 -- -- -- --
478 11,114 -- -- -- --
547 21,538 -- -- -- --
677 7,912 -- -- -- --
708 21,948 510 15,810 -- --
700 8,750 500 6,250 900 11,250
367 6,514 -- -- -- --
-- -- 400 8,300 800 16,600
128 6,816 -- -- -- --
700 8,225 500 5,875 1,300 15,275
293 14,247 208 10,114 385 18,721
1,200 14,475 800 9,650 1,200 14,475
308 6,526 223 4,725 -- --
400 11,200 400 11,200 600 16,800
1,500 21,750 800 11,600 1,500 21,750
-- -- 200 3,300 400 6,600
2,200 16,775 1,600 12,200 3,000 22,875
-- -- -- -- 200 7,400
400 10,150 400 10,150 600 15,225
300 8,250 300 8,250 600 16,500
-- -- 600 17,063 1,000 28,438
645 13,303 400 8,250 675 13,922
400 13,200 300 9,900 500 16,500
214 7,115 176 5,852 351 11,671
4 246 3 185 8 492
848 17,225 623 12,655 -- --
253 16,192 178 11,392 -- --
226 16,879 83 6,199 248 18,523
434 12,478 319 9,171 -- --
368 3,220 269 2,354 405 3,544
454 14,102 331 10,282 510 15,842
371 18,272 276 13,593 -- --
-- -- -- -- 300 2,869
300 7,500 300 7,500 450 11,250
-- -- -- -- 300 2,438
318 23,751 212 15,834 537 40,046
-- -- -- -- 300 4,950
595 7,735 427 5,551 390 5,070
1,048 26,069 748 18,607 -- --
-- -- -- -- 200 2,900
-- -- -- -- 200 10,300
</TABLE>
--------------------
81
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LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Xylan Corp* 100 $ 2,413 100 $ 2,413
Zenith Electronics Corp* 44 292 89 590
------------ ------------
TOTAL SMALL CAP GROWTH
STOCKS
- VALUE $ 270,016 $ 290,607
- COST $ 271,623 $ 355,735
SMALL CAP VALUE STOCKS
PERCENT OF NET ASSETS 0.59% 0.35%
A Schulman Inc 403 $ 10,277 420 $ 10,710
Acnielson Corp* 73 1,825 453 11,325
Advanta Corp Class B 163 3,586 163 3,586
AGL Resources Inc 538 10,928 440 8,938
Aliant Communications Inc -- -- -- --
Alliance Semiconductor Corp* -- -- -- --
American Oncology Resources
Corp* -- -- 200 3,050
Anixter International Inc* 500 8,625 500 8,625
AnnTaylor Stores Inc* 247 3,504 195 2,767
Apria Healthcare Group Inc* 500 6,813 600 8,175
Argonaut Group Inc -- -- 100 3,600
Ascent Entertainment Group
Inc* 249 2,677 293 3,150
Atlantic Energy Inc 569 11,593 460 9,372
Bandag Inc -- -- 100 5,606
Bandag Inc Class A 100 5,163 100 5,163
Bassett Furniture Industries
Inc 25 775 50 1,550
Best Buy Co Inc* -- -- 100 5,963
Bob Evans Farms Inc 468 9,623 360 7,403
Boston Chicken Inc* 600 4,163 500 3,469
Boyd Gaming Corp* -- -- 200 1,588
Breed Technologies Inc -- -- -- --
Brinker International Inc* 1,056 22,044 990 20,666
Burlington Industries Inc* 729 12,074 477 7,900
California Federal Bank* -- -- -- --
Castle & Cooke Inc* 215 3,359 136 2,125
ChemFirst Inc 35 925 84 2,221
Chesapeake Corp 256 8,688 200 6,788
Chesapeake Energy Corp -- -- 400 2,825
Choicepoint Inc* 141 6,750 140 6,703
Chris-Craft Industries Inc* 116 6,496 262 14,602
Cirrus Logic Inc* 634 7,014 780 8,629
Coleman Co Inc* -- -- 200 4,125
Commscope Inc* 50 669 346 4,628
Comsat Corp 510 17,053 600 20,062
Corn Product International
Inc* 60 1,995 295 9,809
Credit Acceptance Corp* 200 1,638 200 1,638
Crescendo Pharmaceuticals
Corp* 5 59 33 392
Delmarva Power & Light Co 640 13,800 510 10,997
</TABLE>
- --------------------
82
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<CAPTION>
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- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
-- $ -- 100 $ 2,413 200 $ 4,825
279 1,848 230 1,524 367 2,431
------------ ------------ ------------
$ 614,128 $ 447,984 $ 688,145
$ 575,277 $ 479,352 $ 806,895
0.49% 0.49% 0.46%
686 $ 17,493 616 $ 15,708 1,185 $ 30,218
918 22,950 707 17,675 1,530 38,250
272 5,984 217 4,774 380 8,360
798 16,209 558 11,334 520 10,563
490 12,863 -- -- -- --
-- -- -- -- 250 1,641
-- -- 200 3,050 400 6,100
500 8,625 700 12,075 1,200 20,700
351 4,980 253 3,589 237 3,362
800 10,900 800 10,900 1,300 17,712
-- -- 200 7,200 300 10,800
400 4,300 397 4,268 679 7,299
830 16,911 590 12,021 550 11,206
200 11,213 100 5,606 300 16,819
200 10,325 200 10,325 400 20,650
200 6,200 120 3,720 206 6,386
-- -- 300 17,888 600 35,775
752 15,463 472 9,706 1,250 25,703
700 4,856 700 4,856 1,100 7,631
-- -- 300 2,381 700 5,556
-- -- -- -- 100 2,175
1,871 39,057 1,171 24,445 2,130 44,464
1,136 18,815 749 12,405 1,902 31,502
-- -- -- -- 120 3,030
336 5,250 222 3,469 341 5,328
314 8,301 224 5,922 347 9,183
361 12,251 266 9,027 650 22,059
1,000 7,063 500 3,531 1,000 7,063
364 17,427 267 12,792 484 23,172
492 27,479 335 18,683 227 12,647
1,496 16,549 1,066 11,793 1,510 16,704
-- -- -- -- 200 4,125
792 10,593 612 8,186 1,552 20,758
819 27,385 814 27,218 1,290 43,134
696 23,142 545 18,121 1,318 43,824
-- -- 200 1,638 500 4,094
71 843 53 629 137 1,627
903 19,471 648 13,973 615 13,261
</TABLE>
--------------------
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<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Deltic Timber Corp 141 $ 3,964 166 $ 4,661
Department 56 Inc* 200 6,588 200 6,588
Earthgrains Co 28 1,213 146 6,324
Ethyl Corp 1,031 8,506 1,010 8,333
Federal Realty Investment
Trust -- -- -- --
Ferro Corp 457 12,310 375 10,102
Fingerhut Co 505 12,530 400 9,925
First Brands Corp 486 12,515 480 12,360
Fleming Co Inc 2 36 291 5,183
Footstar Inc* 46 1,380 245 7,350
Franchise Finance Corp -- -- 100 2,675
Fritz Co Inc* 200 2,775 200 2,775
Fuller (H B) Co -- -- -- --
Gaylord Entertainment Co
Class A 105 3,570 105 3,570
Geon Co -- -- -- --
Gibson Greetings Inc* -- -- -- --
Glatfelter (P H) Co 486 8,535 280 4,918
Glenayre Technologies Inc* 650 7,516 650 7,516
Grand Casinos Inc* 400 6,100 400 6,100
Granite Construction Inc -- -- -- --
Heilig Meyers Co 524 8,122 410 6,355
Homestead Village Property
Inc* 75 1,064 87 1,234
Hunt (J B) Transport
Services -- -- -- --
Hussmann International Inc* 32 486 439 6,660
Idexx Laboratories Inc* 400 6,275 500 7,844
IES Industries -- -- -- --
Indiana Energy Inc -- -- -- --
Information Resources Inc* -- -- -- --
Input/Output Inc* 500 10,781 500 10,781
Integrated Device Technology
Inc* 700 10,544 800 12,050
Intergraph Corp* 54 527 367 3,578
International Multifoods
Corp -- -- -- --
International Rectifier
Corp* 500 7,281 500 7,281
Jacobs Engineering Group* -- -- -- --
JM Smucker Co 305 8,121 -- --
John Alden Financial Corp -- -- -- --
Kennametal Inc 300 15,788 300 15,787
Komag Inc* 400 5,750 600 8,625
Laboratory Corp America
Holdings* 660 1,279 418 810
Laidlaw Environmental
Services* 131 630 353 1,699
Lawson Products Inc -- -- -- --
Lone Star Steakhouse &
Saloon* 300 6,319 400 8,425
Longview Fibre Co 554 8,552 540 8,336
Luby's Cafeteria Inc 45 782 219 3,805
Medaphis Corp* 800 8,300 900 9,338
</TABLE>
- --------------------
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<CAPTION>
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- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
308 $ 8,654 199 $ 5,601 334 $ 9,399
300 9,881 200 6,588 600 19,763
334 14,466 268 11,608 612 26,507
2,029 16,739 1,308 10,791 2,530 20,872
-- -- -- -- 400 9,900
654 17,617 496 13,361 1,222 32,918
714 17,716 509 12,630 180 4,466
694 17,871 704 18,128 1,060 27,295
801 14,268 589 10,492 1,206 21,482
521 15,630 382 11,460 654 19,620
-- -- -- -- 200 5,350
300 4,163 -- -- 400 5,550
225 12,797 -- -- -- --
140 4,760 171 5,814 250 8,500
-- -- -- -- 300 6,000
244 5,368 -- -- -- --
769 13,506 489 8,588 770 13,523
1,175 13,586 800 9,250 1,425 16,477
700 10,675 500 7,625 900 13,725
270 7,155 -- -- -- --
834 12,927 544 8,432 1,300 20,150
100 1,419 113 1,603 188 2,667
596 15,943 -- -- -- --
1,026 15,575 796 12,089 1,533 23,275
800 12,550 600 9,413 1,000 15,688
-- -- -- -- 300 10,856
352 10,516 -- -- -- --
403 5,642 -- -- -- --
1,000 21,563 700 15,094 1,100 23,719
1,700 25,606 800 12,050 2,100 31,631
861 8,395 586 5,714 992 9,672
274 7,655 -- -- -- --
1,000 14,563 700 10,194 1,100 16,019
373 11,167 -- -- -- --
436 11,608 331 8,813 -- --
-- -- -- -- 300 6,731
411 21,629 300 15,788 600 31,575
1,100 15,813 800 11,500 1,100 15,813
1,043 2,021 684 1,325 1,337 2,590
769 3,701 623 2,998 822 3,956
197 5,467 -- -- -- --
700 14,744 500 10,531 900 18,956
890 13,739 575 8,877 1,330 20,532
480 8,340 369 6,411 621 10,790
1,100 11,413 1,200 12,450 2,000 20,750
</TABLE>
--------------------
85
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<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Media General Inc Class A 280 $ 13,160 220 $ 10,340
Mentor Graphics Corp* 600 6,263 700 7,306
Michael Foods Inc -- -- -- --
Michaels Stores Inc* -- -- -- --
Micro Warehouse Inc* 300 4,125 300 4,125
Mid American Waste Systems
Inc* -- -- -- --
Minnesota Power & Light Co 349 14,113 270 10,918
Mississippi Chemical Corp 11 204 28 519
Mobile Media Corp* 300 150 200 100
Mobile Telecommunications
Technologies Corp* -- -- 400 8,200
Modine Manufacturing Co 309 10,815 250 8,750
NCH Corp -- -- -- --
Nevada Power Co 444 11,017 360 8,933
Newport News Shipbuilding 64 1,749 293 7,979
Novacare Inc* -- -- -- --
Old National Bancorp 346 16,176 231 10,799
Oregon Steel Mills Inc -- -- -- --
Overseas Shipholding Group 393 8,155 310 6,433
PacifiCare Health Systems
Inc Class A* 112 6,855 70 4,285
Parker Drilling* -- -- -- --
Pentair Inc -- -- -- --
Perrigo Co* 812 8,729 550 5,913
PharMerica Inc* 35 455 338 4,394
Phillips-Van Heusen -- -- -- --
Picturetel Corp* 400 2,875 400 2,875
Pittston Burlington Group 61 1,346 160 3,530
Policy Management System
Corp* 248 17,949 170 12,304
Primadonna Resorts Inc* -- -- -- --
Public Service Co Of New
Mexico -- -- -- --
Quaker State Corp -- -- -- --
Quest Diagnostics Inc* 46 713 240 3,720
Roadway Express Inc 46 1,058 158 3,634
Ruby Tuesday Inc 192 5,016 100 2,613
Ruddick Corp -- -- -- --
Ryans Family Steak House* 119 985 516 4,273
Santa Fe Energy Resources
Inc* 83 929 809 9,051
Sbarro Inc -- -- -- --
Scholastic Corp* 200 7,925 200 7,925
Sensormatic Electronics Corp 535 9,964 870 16,204
Sequa Corp* 110 8,271 -- --
Sequent Computer* 340 7,204 -- --
Service Merchandise Co* 771 1,783 -- --
Shiva Corp* 300 4,088 300 4,088
Spelling Entertainment
Group* -- -- -- --
</TABLE>
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Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
410 $ 19,270 290 $ 13,630 570 $ 26,790
852 8,893 1,000 10,438 1,600 16,700
229 5,811 -- -- -- --
-- -- -- -- 200 6,800
600 8,250 400 5,500 700 9,625
372 163 -- -- -- --
480 19,410 350 14,153 335 13,547
106 1,961 74 1,369 116 2,146
400 200 300 150 700 350
-- -- -- -- -- --
465 16,275 335 11,725 500 17,500
124 7,556 89 5,423 -- --
652 16,178 472 11,712 450 11,166
616 16,775 465 12,677 846 23,065
975 13,650 710 9,940 -- --
463 21,645 347 16,222 810 37,868
299 6,017 199 4,005 -- --
550 11,413 405 8,404 375 7,781
459 28,021 136 8,273 242 14,768
844 9,284 619 6,809 -- --
576 23,724 406 16,722 -- --
1,252 13,459 842 9,052 1,680 18,060
955 12,415 792 10,296 1,547 20,111
410 5,330 290 3,770 -- --
700 5,031 500 3,594 800 5,750
328 7,237 221 4,876 402 8,869
303 21,930 258 18,673 440 31,845
-- -- -- -- 400 6,000
650 15,153 470 10,957 -- --
419 6,337 299 4,522 -- --
515 7,983 389 6,030 825 12,788
270 6,210 243 5,589 359 8,257
321 8,386 199 5,199 387 10,110
714 12,941 524 9,498 -- --
1,012 8,381 679 5,623 1,039 8,604
1,875 20,977 1,239 13,861 2,826 31,616
319 9,411 219 6,461 -- --
200 7,925 200 7,925 400 15,850
1,723 32,091 1,048 19,519 1,885 35,108
137 10,301 102 7,669 -- --
471 9,979 341 7,225 -- --
1,516 3,506 1,111 2,569 -- --
600 8,175 400 5,450 600 8,175
-- -- -- -- 400 3,600
</TABLE>
--------------------
87
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<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
SPS Transaction Services
Corp* -- $ -- 100 $ 2,919
Standard Register 301 10,272 -- --
Stanhome Inc 220 6,353 170 4,909
Stewart & Stevenson Services 364 8,895 380 9,286
Stride Rite Corp 63 772 375 4,594
Sunglass Hut Inc* 600 4,275 500 3,563
Talbots Inc 200 3,563 200 3,563
TCI Satellite Entertainment* 107 716 543 3,631
Tecumseh Products Co 241 12,080 190 9,524
Teleflex Inc 350 14,197 -- --
Terra Industries Inc 500 5,938 400 4,750
The Fund American Co -- -- -- --
Universal Foods Corp 279 12,555 320 14,400
UNOVA Inc* 34 650 434 8,300
Valhi Inc -- -- -- --
Washington Gas Light 464 12,499 360 9,698
Watts Industries Inc 308 9,259 -- --
Wausau-Mosinee Paper Corp 392 8,477 316 6,833
Wellman Inc 363 7,804 280 6,020
Wisconsin Power & Light
Holding Co 341 10,869 260 8,288
Xtra Corp 200 12,300 200 12,300
Yellow Corp* 49 1,032 223 4,697
Zurn Inds Inc 22 965 46 2,018
------------ ------------
TOTAL SMALL CAP VALUE STOCKS
- VALUE $ 685,798 $ 727,642
- COST $ 805,998 $ 835,051
MICRO CAP STOCKS
PERCENT OF NET ASSETS 0.02% 0.02%
AirTran Holdings Inc* 300 $ 1,744 200 $ 1,163
Bally Total Fitness Holdings
Corp* 26 712 76 2,081
Brown Group Inc 31 461 180 2,678
Consolidated Freightways* 31 465 181 2,708
Crescent Operating Inc* -- -- 80 1,590
Crown Vantage Inc* 21 144 48 330
Dave & Buster's Inc* -- -- -- --
Echelon International Corp* 68 1,476 53 1,156
Ennis Business Forms -- -- -- --
Exabyte Corp* -- -- -- --
Genzyme Corp--Tissue Repair* 44 319 12 87
Golden Books Family
Entertainment Inc* 234 2,750 -- --
Hancock Fabrics Inc -- -- -- --
Handleman Co* 59 398 132 891
Hartmarx Corp* 81 658 230 1,869
Highlands Insurance Group* 37 909 76 1,867
Homebase Inc* 365 2,555 -- --
</TABLE>
- --------------------
88
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- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
-- $ -- -- $ -- 200 $ 5,838
432 14,742 312 10,647 -- --
299 8,634 214 6,179 210 6,064
495 12,097 365 8,920 845 20,650
893 10,939 707 8,661 1,450 17,763
1,000 7,125 700 4,988 1,300 9,263
-- -- 200 3,563 400 7,125
1,150 7,691 883 5,905 1,866 12,479
345 17,293 249 12,481 431 21,604
508 20,606 388 15,738 -- --
700 8,313 500 5,938 1,100 13,063
-- -- -- -- 100 13,075
409 18,405 489 22,005 770 34,650
1,058 20,234 818 15,644 1,661 31,767
-- -- -- -- 300 2,888
624 16,809 454 12,230 440 11,852
464 13,949 334 10,041 -- --
572 12,370 407 8,801 371 8,023
495 10,643 365 7,847 845 18,168
473 15,077 343 10,933 325 10,359
300 18,450 200 12,300 500 30,750
585 12,322 299 6,298 437 9,204
224 9,828 180 7,898 241 10,574
------------ ------------ ------------
$ 1,602,927 $ 1,136,653 $ 1,847,606
$ 1,687,501 $ 1,216,722 $ 2,049,791
0.04% 0.03% 0.02%
400 $ 2,325 200 $ 1,163 700 $ 4,069
185 5,064 116 3,175 223 6,105
338 5,028 221 3,287 253 3,763
405 6,075 286 4,290 569 8,535
-- -- -- -- 200 3,975
104 715 81 557 132 907
103 2,524 -- -- -- --
96 2,084 69 1,511 65 1,418
247 2,624 -- -- -- --
340 2,720 -- -- -- --
71 515 52 377 54 392
313 3,678 233 2,738 -- --
342 5,579 -- -- -- --
467 3,152 307 2,072 521 3,517
389 3,161 354 2,876 618 5,021
172 4,225 136 3,340 216 5,306
497 3,479 367 2,569 -- --
</TABLE>
--------------------
89
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<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Imperial Holly Corp -- $ -- -- $ --
Intelligent Electronics* -- -- -- --
International Technology* -- -- -- --
John Nuveen & Co Inc Class A -- -- 100 3,531
Lukens Inc -- -- -- --
Marvel Entertainment Group
Inc* -- -- 200 175
Mercury Financial Corp* 1,800 1,013 1,800 1,013
Midas Inc* 11 187 146 2,567
Morrison Health Care Inc 128 2,560 66 1,320
National Presto Industries* -- -- -- --
NPC International Inc* -- -- -- --
Objective Systems Integrator
Corp* -- -- 100 1,313
OshKosh B'Gosh Class A 26 1,021 49 1,923
Primex Technologies Inc 47 2,033 56 2,422
Shoneys Inc* 97 473 370 1,804
Sizzler International Inc* 254 841 -- --
Skyline Corp 20 639 44 1,405
Strattec Security Corp* 10 263 28 737
Topp Inc (The)* 512 1,408 -- --
Western Wireless Corp* -- -- 100 1,888
Xoma Corp* 188 934 -- --
------------ ------------
TOTAL MICRO CAP STOCKS
- VALUE $ 23,963 $ 36,518
- COST $ 57,723 $ 61,682
INTERNATIONAL STOCKS
(EXCEPT JAPAN)
PERCENT OF NET ASSETS 4.46% 8.27%
Aegon NV ADR (Netherlands) 22 $ 2,475 325 $ 36,563
Alcatel Alsthom Compagnie
Generale d'electricite ADR
(France) 3,965 103,833 13,120 343,580
Allied Irish Banks PLC ADR
(Ireland) 1,816 140,967 6,002 465,905
Astra AB ADR Series B
(Sweden) 4,738 93,279 15,704 309,173
Axa UAP ADR (France) 2,275 110,053 7,408 358,362
Banco Bilbao Vizcaya ADR
(Spain) 1,440 66,780 4,936 228,907
Banco Central
Hispanoamericano
SA ADR (Spain) 2,016 62,496 6,739 208,909
Banco Santander SA ADR
(Spain) 1,085 50,588 3,500 163,187
BAT Industries PLC ADR (UK) 5,303 106,391 17,454 350,171
Benetton SpA ADR (Italy) 2,417 88,825 7,862 288,928
British Airways PLC ADR (UK) 760 72,200 2,400 228,000
British Petroleum Co PLC ADR
(UK) 1,259 104,102 4,232 349,906
British Sky Broadcasting
Group PLC ADR (UK) 817 31,608 2,585 100,007
British Steel PLC ADR (UK) 678 16,738 2,172 53,621
British Telecommunications
PLC ADR (UK) 2,374 239,774 7,723 780,023
</TABLE>
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- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
134 $ 1,173 94 $ 823 -- $ --
540 3,628 -- -- -- --
137 1,361 -- -- -- --
-- -- -- -- -- --
230 6,900 -- -- -- --
1,400 1,225 200 175 600 525
2,600 1,462 2,400 1,350 4,400 2,475
342 6,003 266 4,666 511 8,972
214 4,280 132 2,640 258 5,160
116 4,517 81 3,154 -- --
374 4,301 284 3,266 -- --
-- -- -- -- 200 2,625
228 8,949 85 3,336 222 8,714
108 4,662 86 3,711 126 5,450
751 3,661 596 2,905 1,304 6,357
434 1,438 319 1,057 -- --
222 7,090 78 2,491 133 4,248
72 1,895 49 1,289 -- --
722 1,986 527 1,449 -- --
-- -- -- -- 300 5,663
193 959 193 959 -- --
------------ ------------ ------------
$ 118,438 $ 61,226 $ 93,197
$ 170,200 $ 94,820 $ 152,511
11.90% 15.07% 15.95%
747 $ 84,037 580 $ 65,250 898 $ 101,025
29,451 771,248 26,715 699,599 49,311 1,291,332
13,553 1,052,052 12,241 950,208 22,591 1,753,626
35,550 699,891 32,160 633,150 59,334 1,168,138
16,697 807,717 15,104 730,656 27,832 1,346,373
11,135 516,386 10,083 467,599 18,490 857,474
15,217 471,727 13,792 427,552 25,532 791,492
7,900 368,337 7,150 333,369 13,250 617,781
39,508 792,629 35,781 717,856 66,006 1,324,245
17,662 649,079 16,072 590,646 29,581 1,087,102
5,425 515,375 4,900 465,500 9,050 859,750
9,639 797,035 8,746 723,221 16,036 1,326,018
5,817 225,045 5,240 202,723 9,702 375,346
4,862 120,031 4,465 110,230 8,166 201,598
17,343 1,751,643 15,812 1,597,012 29,069 2,935,969
</TABLE>
--------------------
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<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Broken Hill Proprierty Co
Ltd ADR
(Australia) 790 $ 15,553 2,578 $ 50,754
Cadbury Schweppes PLC ADR
(UK) 1,457 74,307 4,962 253,062
Coles Myer Ltd ADR
(Australia) 1,124 47,138 3,832 160,704
Courtaulds PLC ADR (UK) 14,458 84,941 48,019 282,112
Daimler-Benz
Aktiengesellschaft ADR
(Germany) 4,451 361,087 14,860 1,205,518
Deutsche Telekom ADR
(Germany) 4,976 99,520 16,458 329,160
Diageo PLC ADR (UK) 3,657 152,007 12,095 502,698
Elf Aquitaine ADR (France) 1,606 91,843 5,412 309,499
Elsevier NV ADR
(Netherlands) 3,987 150,260 13,261 499,774
Fiat SpA ADR (Italy) 4,288 76,112 14,030 249,033
Gallaher Group PLC ADR (UK) 153 3,538 1,391 32,167
Glaxo Holdings PLC ADR (UK) 3,700 200,956 12,392 673,040
Hanson PLC ADR (UK) 2,529 64,015 8,356 211,511
Hong Kong Telecommunications
Ltd ADR (Hong Kong) 12,262 257,502 40,145 843,037
Imperial Chemical Industries
PLC ADR (UK) 1,259 92,064 4,041 295,498
ING Groep NV ADR
(Netherlands) 57 3,032 86 4,574
Jefferson Smurfit Group PLC
ADR (Ireland) 785 20,508 2,760 72,105
KLM Royal Dutch Airlines ADR
(Netherlands) 313 11,464 1,024 37,493
Koninklijke Ahold NV ADR
(Netherlands) 3,015 92,900 10,138 312,377
LVMH (Moet Hennessy Louis
Vuitton) ADR
(France) 1,037 41,221 3,421 135,985
Montedison SpA ADR (Italy) 5,054 51,172 17,007 172,196
National Australia Bank Ltd
ADR (Australia) 1,213 84,910 3,931 275,170
National Power PLC ADR (UK) 1,028 42,534 3,200 132,400
Nokia Corp ADR (Finland) 253 25,490 944 95,108
Novo Nordisk A/S ADR
(Denmark) 2,632 196,249 8,661 645,786
Philips Electronics NV ADR
(Netherlands) 543 42,286 1,947 151,623
Premier Farnell PLC ADR (UK) 2,749 37,283 9,119 123,676
Ranger Oil Ltd ADR (UK) -- -- -- --
Repsol SA ADR (Spain) 837 37,247 2,800 124,600
Reuters Group PLC ADR (UK) 755 45,198 2,614 156,505
Rhone Poulenc SA ADR
(France) 2,434 112,420 7,955 367,422
Royal Dutch Petroleum ADR
(Netherlands) 4,056 220,292 13,468 731,481
SKF AB ADR (Sweden) 781 15,815 2,531 51,253
Smithkline Beecham PLC ADR
(UK) 2,355 145,716 7,695 476,128
Swedish Match AB ADR
(Sweden) 814 26,252 2,602 83,915
Tele Danmark A/S ADR
(Denmark) 1,709 55,756 5,678 185,245
Telecom of New Zealand ADR
(New Zealand) 1,169 44,860 3,958 151,888
</TABLE>
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- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
5,741 $ 113,026 5,193 $ 102,237 9,571 $ 188,429
11,081 565,131 10,027 511,377 18,562 946,662
8,675 363,808 7,932 332,648 14,440 605,578
108,246 635,945 98,153 576,649 177,445 1,042,489
33,458 2,714,280 30,441 2,469,526 55,953 4,539,187
37,015 740,300 33,544 670,880 61,801 1,236,020
27,143 1,128,113 24,682 1,025,846 44,721 1,858,717
12,229 699,346 11,149 637,583 20,503 1,172,515
29,926 1,127,836 27,163 1,023,706 50,059 1,886,599
31,770 563,918 28,775 510,756 52,980 940,395
3,016 69,745 2,266 52,401 -- --
27,901 1,515,373 25,313 1,374,812 46,634 2,532,809
18,888 478,099 17,086 432,489 31,595 799,748
90,275 1,895,780 81,824 1,718,314 146,485 3,076,183
9,153 669,313 8,260 604,012 15,280 1,117,350
115 6,117 115 6,117 202 10,744
6,290 164,326 5,637 147,267 10,335 270,002
2,358 86,362 2,198 80,502 3,980 145,767
22,905 705,760 20,762 639,729 38,157 1,175,713
7,722 306,950 6,983 277,574 12,913 513,292
38,429 389,094 34,830 352,654 64,117 649,185
8,922 624,540 8,074 565,180 14,848 1,039,360
7,311 302,493 6,656 275,392 12,258 507,175
2,183 219,937 1,976 199,082 3,651 367,838
19,506 1,454,416 17,679 1,318,190 32,597 2,430,514
4,281 333,383 3,897 303,479 7,166 558,052
20,599 279,374 18,684 253,402 34,410 466,686
1,508 9,708 1,103 7,101 -- --
6,225 277,013 5,650 251,425 10,350 460,575
5,545 332,003 5,031 301,231 9,354 560,067
17,936 828,419 16,306 753,133 29,975 1,384,470
30,452 1,653,924 27,687 1,503,750 50,874 2,763,094
5,817 117,794 5,246 106,232 9,748 197,397
17,391 1,076,068 15,763 975,336 29,089 1,799,882
5,962 192,275 5,367 173,086 9,959 321,178
12,791 417,306 11,616 378,972 21,428 699,089
8,783 337,048 8,048 308,842 14,738 565,571
</TABLE>
--------------------
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<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Telefonaktiebolaget LM
Ericsson ADR
(Sweden) 1,341 $ 60,764 4,463 $ 202,230
Telefonica De Espana SA ADR
(Spain) 578 59,823 2,025 209,588
The News Corp Limited ADR
(Australia) 954 24,267 3,180 80,891
Total SA ADR (France) 2,228 123,245 7,175 396,884
Unilever NV ADR
(Netherlands) 3,972 255,449 13,212 849,697
Vodafone Group PLC ADR (UK) 1,108 98,058 3,582 317,007
Westpac Banking Ltd ADR
(Australia) 1,796 61,962 5,858 202,101
WMC Limited Sponsored ADR
(Australia) 1,140 15,390 3,837 51,800
Zeneca Group PLC ADR (UK) 558 74,179 1,977 262,817
------------ ------------
TOTAL INTERNATIONAL STOCKS
(EXCEPT JAPAN)
- VALUE $ 5,186,694 $ 17,222,754
- COST $ 3,725,714 $ 12,449,757
JAPANESE STOCKS
PERCENT OF NET ASSETS 1.26% 2.26%
Canon Inc ADR 278 $ 31,796 1,006 $ 115,061
CSK Corp ADR 1,916 45,745 6,100 145,637
Fuji Photo Film Co Ltd ADR 975 38,513 3,270 129,165
Hitachi Ltd ADR 732 55,449 2,384 180,588
Honda Motor Co Ltd ADR 533 37,510 1,895 133,361
Ito Yokado Co Ltd ADR 430 93,310 1,290 279,930
Japan Air Lines Co ADR 9,808 78,464 31,600 252,800
Kirin Brewery Co ADR 1,597 141,534 5,002 443,302
Kubota Corp ADR 1,434 83,531 1,203 70,075
Kyocera Corp ADR 430 45,903 1,219 130,128
Makita Corp ADR 1,420 16,330 4,803 55,235
Matsushita Corp ADR 257 37,554 833 121,722
Mitsubishi Corp ADR 3,294 50,115 14,325 217,941
Mitsui & Co Ltd ADR 660 83,407 2,015 254,646
NEC Corp ADR 1,183 66,987 3,663 207,417
Nippon Telegraph & Telegraph
ADR 1,824 80,256 5,739 252,516
Nissan Motor Co Ltd ADR 3,635 32,261 11,246 99,808
Pioneer Electronics ADR 2,192 38,086 6,817 118,445
Ricoh Co Ltd ADR 677 36,173 2,079 111,084
Sony Corp ADR 468 42,325 1,522 137,646
Tokio Marine & Fire
Insurance ADR 3,718 211,926 15,400 877,800
Toyota Motor Corp ADR 2,178 119,518 6,951 381,436
------------ ------------
TOTAL JAPANESE STOCKS
- VALUE $ 1,466,693 $ 4,715,743
- COST $ 1,561,640 $ 5,180,897
</TABLE>
- --------------------
94
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
10,037 $ 454,802 9,078 $ 411,347 16,755 $ 759,211
4,543 470,201 4,129 427,352 7,600 786,600
7,284 185,287 6,549 166,590 12,113 308,124
16,304 901,823 14,778 817,415 27,219 1,505,566
29,720 1,911,368 26,964 1,734,122 49,692 3,195,817
7,996 707,646 7,309 646,847 13,402 1,186,077
13,159 453,986 11,924 411,378 21,965 757,792
8,659 116,897 7,868 106,218 14,498 195,723
4,539 603,403 4,106 545,841 7,461 991,847
------------ ------------ ------------
$ 38,821,968 $ 35,202,593 $ 64,552,358
$ 28,112,399 $ 26,519,655 $ 49,777,523
3.33% 4.73% 4.39%
2,209 $ 252,654 2,241 $ 256,314 3,644 $ 416,783
14,200 339,025 14,411 344,063 23,202 553,948
7,234 285,743 7,336 289,772 11,900 470,050
5,658 428,594 5,714 432,836 9,276 702,657
4,187 294,660 4,292 302,050 6,944 488,684
2,975 645,575 3,003 651,651 4,826 1,047,242
72,475 579,800 73,774 590,192 118,787 950,296
11,386 1,009,084 11,580 1,026,278 18,702 1,657,465
10,786 628,285 10,935 636,964 16,660 970,445
2,931 312,884 3,005 320,784 4,802 512,614
10,209 117,404 10,347 118,990 16,783 193,005
1,961 286,551 2,071 302,625 3,316 484,550
33,788 514,051 34,400 523,362 55,390 842,703
4,622 584,105 4,684 591,941 7,495 947,181
8,710 493,204 8,814 499,093 14,199 804,018
13,060 574,640 13,258 583,352 21,374 940,456
26,944 239,128 27,449 243,610 44,207 392,337
16,304 283,282 16,637 289,068 26,756 464,886
4,949 264,432 5,025 268,492 8,133 434,557
3,440 311,105 3,483 314,994 5,516 498,853
26,976 1,537,632 27,469 1,565,733 44,208 2,519,856
16,271 892,871 16,569 909,224 26,644 1,462,089
------------ ------------ ------------
$ 10,874,709 $ 11,061,388 $ 17,754,675
$ 11,766,889 $ 11,943,734 $ 19,827,514
</TABLE>
--------------------
95
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
WARRANTS
PERCENT OF NET ASSETS 0.01% 0.01%
Edison Brothers Stores Inc
expires (9/26/2005)* -- $ -- -- $ --
Morrison Knudsen Corp
expires (03/11/2003)* 4 24 17 100
Security Capital Group Inc
expires (09/18/1998)* -- -- -- 1
------------ ------------
TOTAL WARRANTS
- VALUE $ 24 $ 101
- COST $ 18 $ 76
------------ ------------
TOTAL COMMON STOCKS
- VALUE $ 27,452,612 $100,647,055
- COST $ 20,688,038 $ 70,973,387
</TABLE>
- --------------------
96
<PAGE>
<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%
16 $ 50 -- $ -- -- $ --
27 159 25 147 42 247
-- -- -- -- -- --
------------ ------------ ------------
$ 209 $ 147 $ 247
$ 5,050 $ 109 $ 184
------------ ------------ ------------
$227,616,986 $199,858,748 $402,385,045
$158,197,203 $140,521,797 $301,288,702
</TABLE>
--------------------
97
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
LONG-TERM GOVERNMENT
BONDS
PERCENT OF NET ASSETS 3.10% 3.59%
U.S. Treasury Bonds, 6.00%-
13.875%, 11/15/02-08/15/27 $ 2,850,000 $ 3,603,094 $ 5,900,000 $ 7,463,579
------------ ------------
TOTAL LONG-TERM GOVERNMENT
BONDS
- VALUE $ 3,603,094 $ 7,463,579
- COST $ 3,597,522 $ 7,226,745
INTERMEDIATE-TERM
GOVERNMENT BONDS
PERCENT OF NET ASSETS 47.78% 38.11%
U.S. Treasury Notes, 5.00%-
9.125%, 02/15/99-08/15/07 $54,000,000 $ 55,521,719 $77,000,000 $ 79,360,739
------------ ------------
TOTAL INTERMEDIATE-TERM
GOVERNMENT BONDS
- VALUE $ 55,521,719 $ 79,360,739
- COST $ 54,747,123 $ 78,063,513
</TABLE>
- --------------------
98
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
5.34% 11.49% 0.00%
$14,150,000 $ 17,412,904 $21,340,000 $ 26,831,306 $ -- $ --
------------ ------------ ------------
$ 17,412,904 $ 26,831,306 $ --
$ 16,414,576 $ 25,139,792 $ --
19.11% 0.54% 0.00%
$60,445,000 $ 62,343,412 $ 1,200,000 $ 1,265,843 $ -- $ --
------------ ------------ ------------
$ 62,343,412 $ 1,265,843 $ --
$ 61,322,505 $ 1,216,612 $ --
</TABLE>
--------------------
99
<PAGE>
LIFEPATH MASTER PORTFOLIOS FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
----------------------- -----------------------
Principal/ Principal/
Shares Value Shares Value
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. TREASURY BILLS
PERCENT OF NET ASSETS 24.33% 8.42%
U.S. Treasury Bills, 4.48%-
5.38%**, 03/05/98-04/30/98 28,484,000 $ 28,266,846 17,638,000 $ 17,533,677
------------ ------------
TOTAL U.S. TREASURY BILLS
- VALUE $ 28,266,846 $ 17,533,677
- COST $ 28,267,604 $ 17,532,180
CASH EQUIVALENTS
PERCENT OF NET ASSETS 5.89% 5.84%
Dreyfus Cash Plus
Institutional Money Market
Fund# 1,643,608 $ 1,643,608 2,156,344 $ 2,156,344
Janus Institutional Money
Market Fund# 3,000,000 3,000,000 7,000,000 7,000,000
Merrimac Institutional
Money Market Fund# 2,200,000 2,200,000 3,000,000 3,000,000
------------ ------------
TOTAL CASH EQUIVALENTS
- VALUE $ 6,843,608 $ 12,156,344
- COST $ 6,843,608 $ 12,156,344
REPURCHASE AGREEMENTS
PERCENT OF NET ASSETS 4.30% 4.32%
Goldman Sachs Repurchase
Agreements#, dated
2/27/98, due 3/2/98, with
a maturity value of
$52,024,599 and an
effective yield of 5.67%,
collateralized by Federal
Home Loan Mortgage
Corporation obligations
with rates ranging from
6.00% to 8.50%, with
maturity dates ranging
from 04/01/03 to 11/01/26
and with an aggregate
market value of
$53,040,000. $5,000,000 $ 5,000,000 $9,000,000 $ 9,000,000
------------ ------------
TOTAL INVESTMENTS IN
SECURITIES (NOTES 1 AND 3)
- VALUE $126,687,879 $226,161,394
- COST## $119,143,895 $194,952,169
------------ ------------
TOTAL INVESTMENTS IN
SECURITIES 109.03% $126,687,879 108.62% $226,161,394
Other Assets and
Liabilities, Net (9.03)% (10,488,878) (8.62)% (17,943,695)
---------- ------------ ---------- ------------
TOTAL NET ASSETS 100.00% $116,199,001 100.00% $208,217,699
========== ============ ========== ============
</TABLE>
- --------------------------------------------------------------------------------
* Non-income earning securities
# Represent investment of collateral received from securities lending transac-
tions (see Note 4 of the notes to the financial statements).
** Yield to maturity.
<TABLE>
<S> <C> <C>
## Cost for federal income tax purposes is: $119,174,138 $194,988,660
Net unrealized appreciation
consists of:
Gross Unrealized Appreciation 8,505,024 33,474,443
Gross Unrealized Depreciation (991,283) (2,301,709)
---------- -----------
NET UNREALIZED APPRECIATION $7,513,741 $31,172,734
========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------
100
<PAGE>
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal/ Principal/ Principal/
Shares Value Shares Value Shares Value
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.46% 2.71% 1.03%
17,926,000 $ 17,806,704 6,355,000 $ 6,319,929 4,208,000 $ 4,180,230
------------ ------------- ------------
$ 17,806,704 $ 6,319,929 $ 4,180,230
$ 17,806,677 $ 6,319,259 $ 4,179,432
5.01% 5.25% 5.84%
2,365,516 $ 2,365,516 3,263,638 $ 3,263,638 2,849,215 $ 2,849,215
8,000,000 8,000,000 5,000,000 5,000,000 13,000,000 13,000,000
6,000,000 6,000,000 4,000,000 4,000,000 7,800,000 7,800,000
------------ ------------- ------------
$ 16,365,516 $ 12,263,638 $ 23,649,215
$ 16,365,516 $ 12,263,638 $ 23,649,215
4.29% 3.85% 3.71%
$14,000,000 $ 14,000,000 $9,000,000 $ 9,000,000 $15,000,000 $ 15,000,000
------------ ------------- ------------
$355,545,522 $ 255,539,464 $445,214,490
$284,106,477 $ 194,461,098 $344,117,349
------------ ------------- ------------
108.97% $355,545,522 109.39% $ 255,539,464 110.00% $445,214,490
(8.97)% (29,274,760) (9.39)% (21,929,091) (10.00)% (40,485,383)
------------ ------------- ------------
100.00% $326,270,762 100.00% $ 233,610,373 100.00% $404,729,107
============ ========== ============= =========== ============
$284,239,484 $ 194,522,434 $344,499,671
$ 75,842,886 $ 64,847,992 $108,275,336
(4,536,847) (3,830,948) (7,560,507)
------------ ------------- ------------
$ 71,306,038 $ 61,017,030 $100,714,819
============ ============= ============
</TABLE>
--------------------
101
<PAGE>
STATEMENT OF ASSETS & LIABILITIES FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Master Master
Portfolio Portfolio
- ----------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see cost below)
(Note 1) $ 126,687,879 $ 226,161,394
Cash 595 405
RECEIVABLES:
Investments sold 5,621,666 5,515,149
Dividends and interest 892,217 1,453,657
TOTAL ASSETS 133,202,357 233,130,605
LIABILITIES
PAYABLES:
Investments securities purchased 5,062,626 3,543,357
Collateral for securities loaned (Note 4) 11,843,608 21,156,344
Due to BGI (Note 2) 97,122 213,205
TOTAL LIABILITIES 17,003,356 24,912,906
TOTAL NET ASSETS $ 116,199,001 $ 208,217,699
INVESTMENTS AT COST $ 119,143,895 $ 194,952,169
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------
102
<PAGE>
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Master Master Master
Portfolio Portfolio Portfolio
- -----------------------------------------------------------------
<S> <C> <C>
$ 355,545,522 $ 255,539,464 $ 445,214,490
0 63 4,698
4,510,212 7,320 12,800
1,463,402 574,976 551,701
361,519,136 256,121,823 445,783,689
4,558,381 1,012,287 2,000,588
30,365,516 21,263,638 38,649,215
324,477 235,525 404,779
35,248,374 22,511,450 41,054,582
$ 326,270,762 $ 233,610,373 $ 404,729,107
$ 284,106,477 $ 194,461,098 $ 344,117,349
- -----------------------------------------------------------------
</TABLE>
--------------------
103
<PAGE>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 470,531 $ 1,547,164
Interest+ 5,511,578 5,932,067
TOTAL INVESTMENT INCOME 5,982,109 7,479,231
EXPENSES (NOTE 2)
Advisory Fees 656,142 1,018,984
TOTAL EXPENSES 656,142 1,018,984
NET INVESTMENT INCOME 5,325,967 6,460,247
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain (loss) on sale of
investments 5,800,419 9,734,287
Net realized gain (loss) on sale of futures
contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 3,089,773 16,696,571
Net change in unrealized appreciation
(depreciation) in financial futures
contracts 0 0
NET GAIN (LOSS) ON INVESTMENTS 8,890,192 26,430,858
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $14,216,159 $32,891,105
- ------------------------------------------------------------------------------
+ Interest income includes security lending
income of: $ 23,958 $ 48,999
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------
104
<PAGE>
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
Master Portfolio Master Portfolio Master Portfolio
- -----------------------------------------------------------------
<S> <C> <C>
$ 3,350,517 $ 2,688,191 $ 5,125,909
5,902,764 2,426,345 1,316,791
9,253,281 5,114,536 6,442,700
1,572,634 1,048,151 1,767,632
1,572,634 1,048,151 1,767,632
7,680,647 4,066,385 4,675,068
16,445,704 9,255,193 26,380,392
0 0 14,539
39,706,672 35,383,133 58,037,494
0 0 (52,500)
56,152,376 44,638,326 84,379,925
$63,833,023 $ 48,704,711 $ 89,054,993
- -----------------------------------------------------------------
$ 79,526 $ 61,182 $ 114,518
</TABLE>
--------------------
105
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2000 Master Portfolio
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 5,325,967 $ 5,769,457
Net realized gain (loss) on sale of
investments 5,800,419 2,894,777
Net change in unrealized appreciation
(depreciation) of investments 3,089,773 (273,099)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 14,216,159 8,391,135
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTEREST
TRANSACTIONS (29,290,156) 6,204,037
INCREASE (DECREASE) IN NET ASSETS (15,073,997) 14,595,172
NET ASSETS:
Beginning net assets 131,272,998 116,677,826
ENDING NET ASSETS $ 116,199,001 $ 131,272,998
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------
106
<PAGE>
<TABLE>
<CAPTION>
LifePath 2010 Master Portfolio LifePath 2020 Master Portfolio
- ------------------------------------- --------------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
February 28, 1998 February 28, 1997 February 28, 1998 February 28, 1997
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 6,460,247 $ 5,182,306 $ 7,680,647 $ 6,271,633
9,734,287 3,439,818 16,445,704 9,487,619
16,696,571 5,149,907 39,706,672 11,374,656
32,891,105 13,772,031 63,833,023 $ 27,133,908
5,815,674 54,517,689 10,995,106 61,750,732
38,706,779 68,289,720 74,828,129 88,884,640
169,510,920 101,221,200 251,442,633 162,557,993
$ 208,217,699 $ 169,510,920 $ 326,270,762 $ 251,442,633
- ------------------------------------------------------------------------------
</TABLE>
--------------------
107
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2030 Master Portfolio
-----------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 4,066,385 $ 3,210,760
Net realized gain (loss) on investments 9,255,193 5,108,662
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 35,383,133 10,036,726
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 48,704,711 18,356,148
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTEREST
TRANSACTIONS 26,100,829 32,210,346
NET INCREASE (DECREASE) IN NET ASSETS 74,805,540 50,566,494
NET ASSETS:
Beginning net assets 158,804,833 108,238,339
ENDING NET ASSETS $ 233,610,373 $ 158,804,833
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------
108
<PAGE>
<TABLE>
<CAPTION>
LifePath 2040 Master Portfolio
- -------------------------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- -------------------------------------------------------
<S> <C>
$ 4,675,068 $ 3,953,444
26,394,931 14,697,190
0 35,620
58,037,494 17,501,172
(52,500) 92,625
89,054,993 36,280,051
57,589,386 45,783,771
146,644,379 82,063,822
258,084,728 176,020,906
$ 404,729,107 $ 258,084,728
- -------------------------------------------------------
</TABLE>
--------------------
109
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Master Investment Portfolio ("MIP") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management investment
company. MIP was organized on October 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 sepa-
rate portfolios (the "Master Portfolios"): the Asset Allocation, Bond Index,
LifePath 2000, LifePath 2010, LifePath 2020, LifePath 2030, LifePath 2040, S&P
500 Index and U.S. Treasury Allocation Master Portfolios. The financial state-
ments for the Asset Allocation, Bond Index, S&P 500 Index and U.S. Treasury Al-
location Master Portfolios are presented separately.
The following significant accounting policies are consistently followed by MIP
in the preparation of its financial statements, and such policies are in con-
formity with generally accepted accounting principles for investment companies.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Ac-
tual results could differ from those estimates.
INVESTMENT POLICY AND SECURITY VALUATION
Each Master Portfolio covered by this report follows an asset allocation strat-
egy among three broad investment classes: equity and debt securities of issuers
located throughout the world and cash in the form of money market instruments.
The equity securities of the Master Portfolios are valued at the last reported
sale price on the primary securities exchange or national securities market on
which such securities are traded. Securities not listed on an exchange or na-
tional securities market, or securities in which there was no last reported
sales price, are valued at the most recent bid prices. Debt securities are gen-
erally 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 secu-
rities or by an independent pricing source. U.S. Government obligations are
valued at the last reported bid price. Debt securities maturing in 60 days or
less are valued at amortized cost, which approximates market value. Any securi-
ties, restricted securities
- --------------------
110
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
or other assets for which market quotations are not readily available, are val-
ued at fair value as determined in good faith in accordance with policies ap-
proved 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 and sell a security at a set price on a future date and is exchange traded.
Upon entering into a futures contract, the LifePath 2000, LifePath 2010,
LifePath 2020, LifePath 2030, and LifePath 2040 Master Portfolios are required
to pledge to the broker an amount of cash, U.S. Government securities or other
high-quality debt securities equal to the minimum "initial margin" requirements
of the exchange. Pursuant to the contract, the Master Portfolios agree to re-
ceive from or pay to the broker an amount of cash equal to the daily fluctua-
tion in the value of the contract. Such receipts or payments are known as
"variation margin" and are re-
--------------------
111
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
corded by the Master Portfolios as unrealized gains or losses. When the con-
tract is closed, the Master Portfolios record a gain or loss equal to the dif-
ference between the value of the contract at the time it was opened and the
value at the time it was closed. Pursuant to regulations and/or published po-
sitions of the Securities and Exchange Commission, the Master Portfolios are
required to segregate cash, U.S. Government obligations or high quality, liq-
uid debt instruments in connection with futures transactions in an amount gen-
erally equal to the entire contract amount. Risks of entering into futures
contracts include the possibility that there may be an illiquid market and
that a change in the value of the contracts may not correlate with changes in
the value of the underlying securities. As of February 28, 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 are recorded at their contracted
resale amounts. These repurchase agreements, if any, are detailed in each Mas-
ter Portfolio's Portfolio of Investments. The adviser to the Master Portfolios
may pool each Master Portfolio's cash and invest in repurchase agreements en-
tered into by the other Master Portfolios. Each Master Portfolio's prospectus
requires that the cash investments be fully collateralized based on values
that are marked to market daily. The collateral is generally held by an agent
bank under a tri-party agreement. It is the adviser's responsibility to value
collateral daily and to obtain additional collateral as necessary to maintain
the value at equal to or greater than 102% of market value. The repurchase
agreements entered into on February 28, 1998, by the Master Portfolios are
collateralized by U.S. Government Securities.
2. AGREEMENTS AND OTHER TRANSACTION WITH AFFILIATES
Pursuant to an Investment Advisory Contract with each Master Portfolio,
Barclays Global Fund Advisors ("BGFA") provides investment guidance and policy
direction in connection with the management of each Master Portfolio's assets.
BGFA is entitled to receive 0.55% of the average daily net assets of the
LifePath Master Portfolios as compensation for its advisory services to such
Master Portfolios. BGFA is an indirect subsidiary of Barclays Bank PLC.
Investors Bank & Trust Company ("IBT") serves as the custodian to each Master
Portfolio. IBT will not be entitled to receive fees for its custodial services
so long as it is entitled to receive a separate fee
- --------------------
112
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
from Barclays Global Investors, 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 Feb-
ruary 28, 1998, these officers of Stephens indirectly 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 year ended February 28, 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 $33,291,178 $59,036,500 $65,715,647 $20,937,159 $ 11,739,298
Sales proceeds 73,454,422 60,420,339 77,806,490 31,317,960 38,650,344
- -------------------------------------------------------------------------------
Other Securities:
Purchases at cost 8,626,001 20,691,293 54,233,382 57,725,629 162,678,573
Sales proceeds 15,515,149 21,511,480 35,040,932 19,494,251 69,544,105
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of February 28, 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 $11,562,364 $11,843,608
LifePath 2010 Master Portfolio $20,634,239 $21,156,344
LifePath 2020 Master Portfolio $29,448,469 $30,365,516
LifePath 2030 Master Portfolio $20,581,637 $21,263,638
LifePath 2040 Master Portfolio $37,418,496 $38,649,215
</TABLE>
--------------------
113
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
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 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>
The average commission rates paid by the Master Portfolios
are as follows:
<TABLE>
<CAPTION>
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
--------------------------------------------------------------------
<S> <C> <C>
LifePath 2000 Master Portfolio $0.0300 $0.0401
LifePath 2010 Master Portfolio $0.0304 $0.0404
LifePath 2020 Master Portfolio $0.0300 $0.0451
LifePath 2030 Master Portfolio $0.0302 $0.0364
LifePath 2040 Master Portfolio $0.0248 $0.0351
</TABLE>
- --------------------
114
<PAGE>
INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
MASTER INVESTMENT PORTFOLIO:
We have audited the accompanying statements of assets and liabilities, includ-
ing the portfolios of investments of LifePath 2000 Master Portfolio, LifePath
2010 Master Portfolio, LifePath 2020 Master Portfolio, LifePath 2030 Master
Portfolio and LifePath 2040 Master Portfolio (five of the portfolios comprising
Master Investment Portfolio) as of February 28, 1998, and the related state-
ments of operations for the year then ended, the statements of changes in net
assets for each of the years in the two-year period then ended, and the finan-
cial highlights for each of the years in the three-year period then ended.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. All periods
indicated in Note 5 ending prior to March 1, 1995, were audited by other audi-
tors whose report dated April 20, 1995, expressed an unqualified opinion on
this information.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of Feb-
ruary 28, 1998 by correspondence with the custodian and other appropriate audit
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall fi-
nancial statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned master portfolios of Master Investment Portfolio as of
February 28, 1998, the results of their operations, the changes in their net
assets and their financial highlights for the periods indicated herein, except
as noted above, in conformity with generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
San Francisco, California
April 3, 1998
--------------------
115
<PAGE>
NOTES
-----
<PAGE>
Wells Fargo provides shareholder services, and/or certain other services for
the Stagecoach Funds. The Funds are sponsored and distributed by Stephens Inc.,
Member NYSE/SIPC. Wells Fargo is not affiliated with Stephens Inc.
The report and the financial statements contained herein are submitted for the
general information of the shareholders of the Stagecoach Funds. If this report
is used for promotional purposes, distribution of the report must be accompa-
nied or preceded by a current prospectus. For an additional prospectus contain-
ing more complete information, including charges and expenses, call 1-800-222-
8222. Read the prospectus carefully before you invest or send money.
SCLP AR (4/98) Bulk Rate
U.S. Postage
PAID
Hudson, MA
Permit No. 19
STAGECOACH FUNDS(R)
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
RECYCLE LOGO APPEARS HERE
<PAGE>
STAGECOACH COMPANY FUNDS LOGO APPEARS HERE
STAGECOACH LIFEPATH(R) FUNDS
INSTITUTIONAL CLASS
---------------------------------
ANNUAL REPORT
---------------------------------
LIFEPATH 2000(R)
LIFEPATH 2010(R)
LIFEPATH 2020(R)
LIFEPATH 2030(R)
LIFEPATH 2040(R)
FEBRUARY 28, 1998
ADVISED BY BARCLAYS GLOBAL FUND ADVISORS
SPONSORED AND DISTRIBUTED BY STEPHENS INC.,
MEMBER NYSE/SIPC
NOT FDIC INSURED
LIFEPATH(TM) FUNDS ANNUAL REPORT
<PAGE>
- --------------------
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders...................................................... 1
Market Overview............................................................. 2
Investment Adviser Discussion............................................... 6
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........................................... 23
Independent Auditor's Report................................................ 30
MASTER INVESTMENT PORTFOLIO
PORTFOLIOS OF INVESTMENTS
LifePath Master Portfolios.................................................. 32
MASTER INVESTMENT PORTFOLIO
Statement of Assets and Liabilities......................................... 114
Statement of Operations..................................................... 116
Statements of Changes in Net Assets......................................... 118
Notes to the Financial Statements........................................... 122
Independent Auditors' Report................................................ 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>
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE>
TO OUR SHAREHOLDERS
The year ended February 28, 1998, was another banner year for the domestic
equity markets and a year of strong returns for the bond markets. The rally
that began in 1991 for the equity markets is one of the longest sustained
rallies in history, and it remains to be seen whether the markets can continue
to rally during the current year. The domestic markets as a whole experienced
several dips. The most significant was a one day decline of more than 6% in the
Standard & Poor's 500 Index in October of 1997. But by February of 1998, the
domestic markets were once again closing at record highs.
. The U.S. stock market again led the way, posting returns of historic
proportions. As measured by the Standard & Poor's 500 Index, the U.S.
Stock Market returned 34.99%.
. The U.S. money market, as measured by 91-day U.S. Treasury bills,
returned 5.53%.
. The U.S. bond market, as measured by the Lehman Brothers
Government/Corporate Bond Index, returned 10.71%.
. Foreign stock markets, as measured by the Morgan Stanley Capital
International Europe/Australia/Far East Index (MSCI/EAFE), returned
15.23%.
As we close the book on a year marked by volatility, investors should
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 important to remember that past performance is not a predictor of future
returns. As market conditions change, you should stick with your long-term
investment strategy if it continues to be appropriate. A hallmark of successful
investors 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 fulfill 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.
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 investment
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 APRIL 1998
1
<PAGE>
MARKET OVERVIEW: 12-MONTH PERIOD ENDING FEBRUARY 1998
U.S. EQUITY MARKETS
During the 12-month period ended February 28, 1998, the domestic stock market
continued its stellar performance, with the S&P 500 Index posting a total
return of 34.99% for the period. For the year ended December 31, 1997, the S&P
500 Index returned 33.36% and the Dow Jones Industrial Average rose by 22.64%.
These 1997 returns mark the first time that both the Dow and the S&P 500
achieved 20%-plus returns for three successive years. Once again, strong
economic growth, low inflation, and solid earnings growth drove these
impressive returns. This good news was tempered by two concerns that continue
to nag investors as they face 1998: whether there will be a spillover effect
from the economic crisis engulfing many Asian markets and whether the current
bull market can keep posting returns at these historic levels.
Buried within the strong 1997 performance figures, however, is a more
complicated and volatile story. Most of 1997's strong returns occurred in the
first seven months of the year. Starting in August, the market seemingly defied
explanation with occasional moderate rallies interrupted by bouts of panic
selling. In fact, the largest one-day point drop ever occurred on October 27
(the Dow dropping 554 points) in reaction to the crisis in the Asian securities
markets. But investors reacted favorably, seeing the October trough as a buying
opportunity and drove the market up 5.12% the day following the correction.
Valuation measures, which were already setting records in 1996, set new ones
in 1997. Corporate earnings rose by an estimated 13.6%, beating not only
analysts' expectations but also inflation, which was the biggest worry among
investors last year. Merger and acquisition activity also experienced a third
consecutive record year. The financial services sector has accounted for more
than 30% of all U.S. merger activity.
Continuing the trend of the last few years, a small group of large-cap stocks
led the equity market. The S&P Growth Index, which includes many of the large
brand-name companies that dominated the overall market, outperformed the S&P
Value Index, 36.54% versus 29.70%. But for the intermediate- and small-cap
sectors, value stocks generally outperformed growth stocks. This disparity,
especially during the second half of 1997, was primarily the result of earnings
disappointments among technology companies, which dominate the intermediate-
and small-growth sectors. The favorable interest rate environment encouraged
merger activity among regional banks and securities firms on the value side,
driving value and growth stocks further apart.
2
<PAGE>
MARKET OVERVIEW
The best-performing sectors in the S&P 500 Index were communications
services, telephone, and utilities. The worst-performing sectors were
technology and basic materials. Many investors clearly continue to expect
strong earnings growth. Stocks failing to meet earnings expectations were
severely punished, such as Oracle Corp., which posted December per share
earnings four cents less than originally estimated, and lost 29% off its
trading price in one day.
Given the market's historic gains over the last three years, it is no
surprise that many investors are uneasy about 1998. Though there are many
opinions on the probable outcome, the consensus is that volatility will
continue to be a factor for some time to come.
U.S. FIXED-INCOME MARKETS
For the 12-month period ended February 28, 1998, the U.S. bond market
continued to benefit from the economic backdrop of robust growth, low
unemployment, and low inflation. As a result, the Lehman Government/Corporate
Bond Index returned 10.71% for the period. This return is about the same as the
Index's average annual compounded return since its inception in 1976.
Long-term interest rates are now at their lowest levels since 1977, when the
U.S. began regular auctions of 30-year Treasury bonds. In addition, the yield
curve has flattened out significantly, with the three-month Treasury bill
rising from a yield of 5.22% to 5.34% and the 30-year Treasury Bond declining
from a yield of 6.80% to 5.92% over the 12-month period. This spread is at its
narrowest point since March of 1990. These lower long-term yields and a flatter
curve meant that long-term bonds outperformed bonds of shorter maturaties.
While the two-year Treasury note returned 7.01%, the 30-year Treasury bond had
a return of 18.42%.
The Federal Reserve Board adjusted monetary policy only once in 1997, raising
rates 0.25% to 5.50% in March and keeping short-term rates steady. This action
was seen as preemptive, sustaining the strongest growth rate possible while
maintaining low inflation.
Declining inflation continues to be favorable for U.S. bonds. The Consumer
Price Index (CPI) increased only 1.8%, the lowest increase since 1986. This
seeming paradox of low inflation in the midst of strong economic growth and low
unemployment can be partially attributed to higher productivity keeping unit
labor costs under control and easing pressure on employers' profit margins.
While Gross Domestic Product (GDP) growth has been robust, 1997 saw it trending
down from 4.9% in the first quarter to 3.7% in the final quarter. The deficit
has also been reduced to 1974 levels due to higher tax receipts
3
<PAGE>
resulting from the strong economy. These factors have all come together to
create the most favorable economic landscape in many years.
In the investment grade U.S. bond market, the government, corporate and
mortgage-backed sectors provided nominal returns of 10.65%, 10.88% and 9.63%
respectively. On a duration-adjusted basis, corporate bonds underperformed
government bonds and mortgage-backed securities actually had the highest
returns. Within the corporate bond market, the worst-performing bonds were
Yankee (U.S. dollar denominated) bonds from issuers in South Korea, Thailand,
and Indonesia. Heavy debt burdens and dramatic currency devaluations resulted
in downgraded credit ratings. Within the space of four weeks between November
and December, South Korean bonds fell from a rating of A3/A- to Ba1/B+. All
three countries' bonds are now rated at junk status.
Looking ahead, the bond market's consensus is that the Asian turmoil should
be beneficial to the U.S. economy in two respects. First, it may help
decelerate U.S. growth, since U.S. exports to Asian countries are expected to
decline. Second, weaker Asian currencies will cause Asian exporters to maintain
low prices on goods they sell to U.S. consumers. These two factors are expected
to heighten competition among U.S. producers and lessen inflationary pressures.
In fact, possible deflationary pressures may lead the Fed to ease rates in the
near future. The U.S. economy is in a strong economic position, but with an
unfolding Asian crisis and unease about the future of U.S. stocks, it remains
to be seen what 1998 holds for investors.
INTERNATIONAL EQUITY MARKETS
The overwhelming story in international equities for 1997 was the economic
crisis in Asia. But while the stocks and bonds of Southeast Asia suffered
significantly, many developed European stock markets actually hit record highs
in 1997 and offset the dismal performance of Asian markets. Developed non-U.S.
equity markets returned 1.78% for the year according to the MSCI/EAFE Index.
Emerging markets fared poorly, posting a decline of 14.85% for 1997 according
to the IFC Investable Composite Total Return Index. Best performers in this
group include Turkey, Russia, Hungary, Mexico, Portugal, and Greece, while
worst performers include Thailand, Indonesia, Malaysia, Korea, and the
Philippines.
Driven by plunging currencies, slowing economies, and overwhelming debt, the
Asian economic crisis was most clearly
4
<PAGE>
MARKET OVERVIEW
manifested in the returns of these five emerging Asian countries. However,
Japan was certainly not immune to the Asian "flu" with decreased exports as
well as an anemic domestic demand resulting from April's increased sales tax,
Japan's equity market dropped 23.67% for the year. Coupled with a 12% annual
gain of the dollar against the yen at Y130.03, Japan progressed into a position
of economic weakness. Several major Japanese financial institutions closed,
including Yamaichi, Japan's fourth-largest brokerage firm.
Developed European markets posted positive returns in 1997 of 23.8%, with
strongest performances coming from Switzerland, Italy and Denmark. Many
European countries have trimmed budgets and taken other actions in order to
comply with Maastricht guidelines, in an attempt to strengthen their economies.
The UK also turned in a strong performance, reacting favorably to the newly
elected Labour government's decision to allow the Bank of England to set
monetary policy. Germany's high returns were driven by signs of economic growth
and increased export earnings due to a weaker Deutschemark. The first addition
to MSCI/EAFE, since Ireland in 1993, occurred in 1997 as Portugal was
reclassified as a developed market in anticipation of its participation in next
year's European Monetary Union. Portugal's market gained 47.77%.
The IFCI Europe/Middle East/Africa region delivered a healthy 12.43% gain on
equity for the year, with Turkey returning a phenomenal 117.08%, making it the
worlds top-performing country. Russia, included since November in the IFCI
Composite Index, gained 112.15% primarily due to economic reforms and the sale
of state-owned assets. Israel, added to the Index last year, gained 24.25%.
Strong earnings growth gave Hungary a return of 61.81%, and Greece finished at
37.73%, despite a negative final quarter.
IFCI Latin America gained 29.27% for the year, even though its markets were
down for the final quarter. Mexico led the region with an impressive gain of
51.58%, as investors reacted to an improving export picture. Columbia and
Venezuela returned 34.45% and 27.19%, respectively. Brazil started the year out
strong but lost some ground in the second half of the year due to concerns over
the strength of its currency. However, Brazil still gained 25.79% on the year.
The MSCI All-Country World Index (ACWI) Free ex-U.S., an international
benchmark integrating developed and emerging equity markets, returned 21.51% in
1997, outperforming both the EAFE and the IFCI Composite indices.
5
<PAGE>
INVESTMENT ADVISER DISCUSSION
Average Annual
PERFORMANCE AS OF 2/28/98 Total Return
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Approximate
Life of Fund Dividends
Fund One year (3/1/94-2/28/98) Per Share
---- -------- ---------------- -----------
<S> <C> <C> <C>
LifePath 2000 12.25% 8.67% $ .0
LifePath 2010 18.75% 13.28% $.40
LifePath 2020 24.27% 16.47% $.31
LifePath 2030 27.48% 18.86% $.38
LifePath 2040 31.02% 21.02% $.18
</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 shares of the Fund will fluctuate with market conditions so
that shares of the Fund, when redeemed, may be worth more or less than their
original cost.
The LifePath Funds employ both strategic and tactical asset allocation
techniques to manage their portfolio investments. 75% of the Fund's total asset
allocation 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 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 strategic allocation of
today's LifePath 2000 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 2000 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.
6
<PAGE>
INVESTMENT ADVISER DISCUSSION
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 2000 14% 7% 75% 4%
LifePath 2010 35% 11% 51% 3%
LifePath 2020 48% 15% 35% 2%
LifePath 2030 58% 18% 23% 1%
LifePath 2040 70% 19% 10% 1%
</TABLE>
In a period of strong equity returns, the Funds performed as expected. The
higher-risk, equity-dominated Funds had higher returns than the Funds nearer
their target dates. Nonetheless, the bond rally of the latter half of 1997
provided the shorter-term Funds with strong positive returns. Tactically, the
Funds began the period underweighted to equities, relative to bonds, after 1996
saw stocks outperform bonds by 24%. As the bond market rallied and yields fell
in 1997, the Funds made tactical shifts to increase the equity exposure that
was becoming increasingly attractive on a relative basis. Similarly, the long
bond yields fell from 6.7% to 5.8%. As the spread between bond and cash yields
tightened , cash and short-duration fixed income instruments became more
attractive than the long-duration bonds. The net result of these conditions was
an increase in each fund's equity exposure, and a move from long-duration bonds
to short-duration bonds and money market instruments. By the end of the period,
the Funds' allocations were the following:
<TABLE>
<CAPTION>
U.S. International U.S. Money
Fund Equity Equity Bonds Market
---- ------ ------------- ----- ------
<S> <C> <C> <C> <C>
LifePath 2000 19% 5% 51% 25%
LifePath 2010 38% 10% 42% 10%
LifePath 2020 55% 15% 25% 5%
LifePath 2030 66% 19% 12% 3%
LifePath 2040 80% 20% 0% 0%
</TABLE>
A significant event in 1997 was the Southeast Asian currency crisis caused
large losses in the Pan-Asian markets. However, this event had little effect on
the LifePath Funds. Though the international exposure is as much as 20% of the
entire allocation in any one Fund, there are only minor investments in
SouthEast Asia. In fact, as the Pan-Asian markets tumbled in
the last three months of 1997, the LifePath Funds all posted positive returns
because of high exposure to the strong U.S. Equity market.
7
<PAGE>
LIFEPATH 2000 INSTITUTIONAL
<TABLE>
<CAPTION>
STAGECOAST-LIFEPATH 2000 LEHMAN BROTHERS S&P 500 COMPOSITE
-------------------------------------------------------------
<S> <C> <C> <C>
100,000 100,000 100,000
MAR-94 9,855 9,753 9,584
JUN-94 9,765 9,653 9,604
SEP-94 9,878 9,712 10,074
DEC-94 9,825 9,748 10,072
MAR-95 10,330 10,240 11,052
JUN-95 10,881 10,864 12,106
SEP-95 11,180 11,078 13,087
DEC-95 11,533 11,550 13,863
MAR-96 11,565 11,344 14,598
JUN-96 11,685 11,408 15,249
SEP-96 11,909 11,618 15,719
DEC-96 12,286 11,967 17,028
MAR-97 12,260 11,901 17,488
JUN-97 12,946 12,339 20,635
SEP-97 13,390 12,749 22,071
DEC-97 13,608 13,125 22,706
FEB-98 13,947 13,282 24,613
</TABLE>
LIFEPATH 2010 INSTITUTIONAL
<TABLE>
<CAPTION>
STAGECOAST-LIFEPATH 2010 LEHMAN BROTHERS S&P 500 COMPOSITE
-------------------------------------------------------------
<S> <C> <C> <C>
100,000 100,000 100,000
MAR-94 9,838 9,753 9,584
JUN-94 9,760 9,653 9,604
SEP-94 9,900 9,712 10,074
DEC-94 9,847 9,748 10,072
MAR-95 10,520 10,240 11,052
JUN-95 10,257 10,864 12,106
SEP-95 11,738 11,078 13,087
DEC-95 12,209 11,550 13,863
MAR-96 12,423 11,344 14,598
JUN-96 12,637 11,408 15,249
SEP-96 11,903 11,618 15,719
DEC-96 13,498 11,967 17,028
MAR-97 13,584 11,901 17,488
JUN-97 14,870 12,339 20,635
SEP-97 15,528 12,749 22,071
DEC-97 15,760 13,125 22,706
FEB-98 16,466 13,282 24,613
</TABLE>
LIFEPATH 2000 INSTITUTIONAL
<TABLE>
<CAPTION>
STAGECOAST-LIFEPATH 2020 LEHMAN BROTHERS S&P 500 COMPOSITE
-------------------------------------------------------------
<S> <C> <C> <C>
100,000 100,000 100,000
MAR-94 9,810 9,753 9,584
JUN-94 9,752 9,653 9,604
SEP-94 9,916 9,712 10,074
DEC-94 9,874 9,748 10,072
MAR-95 10,636 10,240 11,052
JUN-95 11,472 10,864 12,106
SEP-95 12,057 11,078 13,087
DEC-95 12,590 11,550 13,863
MAR-96 12,909 11,344 14,598
JUN-96 13,243 11,408 15,249
SEP-96 13,527 11,618 15,719
DEC-96 14,310 11,967 17,028
MAR-97 14,425 11,901 17,488
JUN-97 16,180 12,339 20,635
SEP-97 17,060 12,749 22,071
DEC-97 17,335 13,125 22,706
FEB-98 18,398 13,282 24,613
</TABLE>
<PAGE>
INVESTMENT ADVISER DISCUSSION
LIFEPATH 2030 INSTITUTIONAL
<TABLE>
<CAPTION>
STAGECOAST-LIFEPATH 2030 LEHMAN BROTHERS S&P 500 COMPOSITE
-------------------------------------------------------------
<S> <C> <C> <C>
100,000 100,000 100,000
MAR-94 9,711 9,753 9,584
JUN-94 9,610 9,653 9,604
SEP-94 9,878 9,712 10,074
DEC-94 9,857 9,748 10,072
MAR-95 10,682 10,240 11,052
JUN-95 11,637 10,864 12,106
SEP-95 12,300 11,078 13,087
DEC-95 12,928 11,550 13,863
MAR-96 13,304 11,344 14,598
JUN-96 13,707 11,408 15,249
SEP-96 14,024 11,618 15,719
DEC-96 14,953 11,967 17,028
MAR-97 15,094 11,901 17,488
JUN-97 17,247 12,339 20,635
SEP-97 18,294 12,749 22,071
DEC-97 18,625 13,125 22,706
FEB-98 19,951 13,282 24,613
</TABLE>
LIFEPATH 2040 INSTITUTIONAL
<TABLE>
<CAPTION>
STAGECOAST-LIFEPATH 2040 LEHMAN BROTHERS S&P 500 COMPOSITE
-------------------------------------------------------------
<S> <C> <C> <C>
100,000 100,000 100,000
MAR-94 9,652 9,753 9,584
JUN-94 9,621 9,653 9,604
SEP-94 9,977 9,712 10,074
DEC-94 9,955 9,748 10,072
MAR-95 10,829 10,240 11,052
JUN-95 11,799 10,864 12,106
SEP-95 12,564 11,078 13,087
DEC-95 13,194 11,550 13,863
MAR-96 13,743 11,344 14,598
JUN-96 14,239 11,408 15,249
SEP-96 14,607 11,618 15,719
DEC-96 15,591 11,967 17,028
MAR-97 15,833 11,901 17,488
JUN-97 18,398 12,339 20,635
SEP-97 19,562 12,749 22,071
DEC-97 19,776 13,125 22,706
FEB-98 21,441 13,282 24,613
</TABLE>
Each Fund is organized as a "feeder" fund in a "master-feeder" structure.
Instead of investing directly in the individual portfolio securities, the
"feeder" fund, which is offered to the public, holds interests in the net
assets of the Master Portfolio that, in turn, invests in individual securities.
References to the Fund are to the feeder fund or the Master Portfolio, as the
context requires. Each Master Portfolio is advised by Barclays Global Fund
Advisors (BGFA).
9
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
- --------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In corresponding Master Portfolio, at market value
(Note 1) $ 67,475,575 $ 95,919,298
RECEIVABLES:
Receivable from WFB (Note 2) 3,103 14,995
Fund shares sold 540,515 58,754
TOTAL ASSETS 68,019,193 95,993,047
LIABILITIES
PAYABLES:
Due to sponsor and distributor 23,317 31,619
Due to WFB (Note 2) 0 0
Capital shares redeemed 72,703 24,733
TOTAL LIABILITIES 96,020 56,352
TOTAL NET ASSETS $ 67,923,173 $ 95,936,695
NET ASSETS CONSIST OF:
Paid-in capital $ 61,109,961 $ 76,886,504
Undistributed net investment income 385,462 385,671
Undistributed net realized gain on investment 1,521,282 1,797,016
Net unrealized appreciation (depreciation) of
investments 4,906,468 16,867,504
TOTAL NET ASSETS $ 67,923,173 $ 95,936,695
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER
SHARE
Net Assets - Class A $ 67,909,225 $ 89,658,807
Shares outstanding - Class A 6,271,099 6,815,464
Net asset value and offering price per share - Class
A $ 10.83 $ 13.16
Net Assets - Class B $ 0 $ 6,248,402
Shares outstanding - Class B 0 476,916
Net asset value and offering price per share - Class
B $ 0 $ 13.10
Net Assets - Institutional class $ 13,948 $ 29,486
Shares outstanding - Institutional class 1,355 2,526
Net asset value and offering price per share -
Institutional class $ 10.29 $ 11.67
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
STATEMENT OF ASSETS & LIABILITIES--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- ------------------------------------------------------------------
<S> <C> <C>
$ 178,266,021 $ 138,450,504 $ 278,684,298
4,135 0 0
413,671 364,114 694,661
178,683,827 138,814,618 279,378,959
46,186 38,024 65,508
0 3,311 43,800
224,650 126,262 293,835
270,836 167,597 403,143
$ 178,412,991 $ 138,647,021 $ 278,975,816
$ 129,742,850 $ 94,588,778 $ 198,516,273
444,443 209,406 124,405
3,631,348 2,325,866 4,263,946
44,594,350 41,522,971 76,071,192
$ 178,412,991 $ 138,647,021 $ 278,975,816
$ 166,198,003 $ 126,130,682 $ 248,195,091
11,304,269 7,641,679 14,537,252
$ 14.70 $ 16.51 $ 17.07
$ 12,129,385 $ 12,469,207 $ 30,753,993
883,660 766,089 1,834,957
$ 14.55 $ 16.28 $ 16.76
$ 85,603 $ 47,132 $ 26,732
6,180 2,929 1,635
$ 13.85 $ 16.09 $ 16.35
- ------------------------------------------------------------------
</TABLE>
11
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
- ----------------------------------------------------------------------------
<S> <C> <C>
NET INVESTMENT INCOME ALLOCATED FROM MASTER
PORTFOLIO
Dividends $ 290,356 $ 735,016
Interest 3,390,560 2,816,848
Expenses (403,248) (483,532)
NET INVESTMENT INCOME ALLOCATED FROM MASTER
PORTFOLIO 3,277,668 3,068,332
EXPENSES (NOTE 2)
Administration fee 73,243 87,886
Shareholder servicing fees 146,486 175,771
Transfer agency fees 73,243 87,886
Distribution costs - Class A 183,075 213,875
Distribution costs - Class B 0 17,269
TOTAL EXPENSES 476,047 582,687
NET INVESTMENT INCOME 2,801,621 2,485,645
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ALLOCATED FROM MASTER PORTFOLIO
Net realized gain (loss) on sale of investments 4,301,793 5,714,054
NET REALIZED GAIN (LOSS) ON INVESTMENTS 4,301,793 5,714,054
CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER SERIES
Net change in unrealized appreciation
(depreciation) of investments 1,145,265 6,828,482
CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,145,265 6,828,482
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 8,248,679 $ 15,028,181
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
STATEMENT OF OPERATIONS--FOR THE YEAR ENDED FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
- -------------------------------------------------------------
<S> <C> <C>
$ 1,878,044 $ 1,655,151 $ 3,640,493
3,308,436 1,497,067 944,620
(880,206) (644,467) (1,253,906)
4,306,274 2,507,751 3,331,207
160,021 117,214 227,985
320,043 234,428 455,970
160,021 117,214 227,985
387,413 280,561 540,814
37,350 37,091 87,274
1,064,848 786,508 1,540,028
3,241,426 1,721,243 1,791,179
10,898,128 6,664,486 20,942,146
10,898,128 6,664,486 20,942,146
20,358,807 20,833,854 39,110,252
20,358,807 20,833,854 39,110,252
$ 34,498,361 $ 29,219,583 $ 61,843,577
- -------------------------------------------------------------
</TABLE>
13
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2000 Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 2,801,621 $ 3,636,851
Net realized gain (loss) on sale of
investments 4,301,793 2,732,074
Net change in unrealized appreciation
(depreciation) of investments 1,145,265 (959,715)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 8,248,679 5,409,210
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (2,974,734) (3,756,712)
Class B 0 0
Institutional class 0 (570)
From net realized gain from sale of
investments
Class A (4,075,304) (1,721,568)
Class B 0 0
Institutional class (862) (48,077)
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold - Class A 11,675,990 37,948,187
Reinvestment of dividends - Class A 6,867,295 5,135,618
Cost of shares redeemed - Class A (36,779,860) (58,589,767)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (18,236,575) (15,505,962)
Proceeds from shares sold - Class B 0 0
Reinvestment of dividends - Class B 0 0
Cost of shares redeemed - Class B 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 0 0
Proceeds from shares sold -
Institutional class 0 1,267,997
Reinvestment of dividends -
Institutional class 862 208,022
Cost of shares redeemed - Institutional
class 0 (18,222,796)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 862 (16,746,777)
INCREASE (DECREASE) IN NET ASSETS (17,037,934) (32,370,456)
NET ASSETS:
Beginning net assets 84,961,107 117,331,563
ENDING NET ASSETS $ 67,923,173 $ 84,961,107
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2010 Fund LifePath 2020 Fund
- ------------------------------------ ------------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
February 28, 1998 February 28, 1997 February 28, 1998 February 28, 1997
- ----------------------------------------------------------
<S> <C> <C> <C>
$ 2,485,645 $ 2,438,078 $ 3,241,426 $ 3,165,347
5,714,054 2,784,852 10,898,128 8,285,130
6,828,482 704,734 20,358,807 3,932,094
15,028,181 5,927,664 34,498,361 15,382,571
(2,575,007) (2,393,878) (3,252,950) (3,234,978)
(31,698) 0 (47,199) 0
(1,221) (1,673) (1,772) (1,862)
(5,401,825) (999,794) (10,821,255) (4,457,911)
(261,495) 0 (555,904) 0
(1,957) (138,908) (5,732) (97,440)
15,777,443 34,070,450 28,343,707 52,706,149
7,917,812 3,206,892 13,987,631 3,353,041
(23,646,888) (26,504,856) (41,621,895) (43,292,145)
48,367 10,772,486 709,443 12,767,045
6,169,331 0 11,509,114 0
288,508 0 588,214 0
(321,968) 0 (509,483) 0
6,135,871 0 11,587,845 0
2 2,529,219 0 1,484,241
3,178 289,983 7,501 349,700
(24,970) (34,601,841) (90) (38,954,344)
(21,790) (31,782,639) 7,411 (37,120,403)
12,917,426 (18,616,742) 32,118,248 (16,762,978)
83,019,269 101,636,011 146,294,743 163,057,721
$ 95,936,695 $ 83,019,269 $ 178,412,991 $ 146,294,743
- ---------------------------------------------------------------------------
</TABLE>
15
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2030 Fund
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 1,721,243 $ 1,657,635
Net realized gain (loss) on sale of
investments 6,664,486 4,461,859
Net change in unrealized appreciation
(depreciation) of investments 20,833,854 5,090,075
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 29,219,583 11,209,569
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (1,721,740) (1,710,475)
Class B (28,281) 0
Institutional class (1,108) (5,645)
From net realized gain from sale of
investments
Class A (6,317,229) (2,265,932)
Class B (448,302) 0
Institutional class (2,388) (61,335)
CAPITAL SHARES TRANSACTIONS:
Proceeds from shares sold - Class A 20,334,470 30,971,697
Reinvestment of dividends - Class A 7,987,742 3,826,842
Cost of shares redeemed - Class A (23,153,085) (27,148,781)
NET INCREASE (DECREASE) IN NET SHARES
OUTSTANDING -CLASS A 5,169,127 7,649,758
Proceeds from shares sold - Class B 11,536,495 0
Reinvestment of dividends - Class B 473,399 0
Cost of shares redeemed - Class B (351,165) 0
NET INCREASE (DECREASE) IN NET SHARES
OUTSTANDING - CLASS B 11,658,729 0
Proceeds from shares sold -
Institutional class 0 1,939,792
Reinvestment of dividends -
Institutional class 3,494 188,977
Cost of shares redeemed - Institutional
class (4,321) (24,283,479)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (827) (22,154,710)
INCREASE (DECREASE) IN NET ASSETS 37,527,564 (7,338,770)
NET ASSETS:
Beginning net assets 101,119,457 108,458,227
ENDING NET ASSETS $ 138,647,021 $ 101,119,457
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2040 Fund
- -------------------------------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- -------------------------------------------------------------
<S> <C>
$ 1,791,179 $ 2,019,898
20,942,146 13,884,725
39,110,252 11,621,464
61,843,577 27,526,087
(1,930,509) (2,045,803)
(14,585) 0
(263) (338)
(21,055,603) (7,609,699)
(1,893,805) 0
(2,348) (797,501)
53,851,530 76,803,382
22,961,611 2,589,866
(53,765,333) (52,840,894)
23,047,808 26,552,354
28,753,908 0
1,908,390 0
(1,263,288) 0
29,399,010 0
0 1,917,732
2,609 248,730
0 (32,335,375)
2,609 (30,168,913)
89,395,891 13,456,187
189,579,925 176,123,738
$ 278,975,816 $ 189,579,925
- --------------------------------------------------------------
</TABLE>
17
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2000 Fund
-----------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1998 Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
---------------------- ---------------------- ----------------------- ----------------------
Class Institutional Class Institutional Class Institutional Class Institutional
A Class A Class A Class A Class
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.71 $ 9.79 $ 10.64 $ 10.67 $ 9.92 $ 9.94 $ 10.00 $ 10.00
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.43 0.39 0.42 1.29 0.40 0.42 0.34 0.35
Net realized and
unrealized gain (loss)
on investments 0.81 0.79 0.28 (0.60) 0.86 0.86 (0.14) (0.12)
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM INVESTMENT
OPERATIONS 1.24 1.18 0.70 0.69 1.26 1.28 0.20 0.23
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.44) 0.00 (0.42) (1.36) (0.41) (0.42) (0.27) (0.28)
Distributions from net
realized capital gains (0.68) (0.68) (0.21) (0.21) (0.13) (0.13) (0.01) (0.01)
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM DISTRIBUTIONS (1.12) (0.68) (0.63) (1.57) (0.54) (0.55) (0.28) (0.29)
<CAPTION>
------- ------------- ------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, END OF
PERIOD $ 10.83 $ 10.29 $ 10.71 $ 9.79 $ 10.64 $ 10.67 $ 9.92 $ 9.94
<CAPTION>
======= ============= ======= ============= ======== ============= ======= =============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN 11.99% 12.25% 6.74% 7.23% 12.98% 13.19% 2.10% 2.38%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000) $67,909 $ 14 $84,949 $ 12 $100,070 $17,262 $54,617 $ 7,499
Number of shares
outstanding, end of
period (000) 6,272 1 7,934 1 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% 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% 4.00% 4.23% 4.62% 4.89%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LifePath 2010 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>
$ 12.20 $ 12.02 $ 10.94 $ 11.42 $ 11.47 $ 9.99 $ 10.02 $ 10.00 $ 10.00
<CAPTION>
- ------- ------- ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0.36 0.19 0.38 0.34 1.57 0.32 0.34 0.34 0.33
1.82 1.88 1.59 0.95 (0.36) 1.58 1.60 (0.02) 0.01
<CAPTION>
- ------- ------- ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2.18 2.07 1.97 1.29 1.21 1.90 1.94 0.32 0.34
(0.38) (0.15) (0.40) (0.34) (1.57) (0.33) (0.35) (0.28) (0.27)
(0.84) (0.84) (0.84) (0.17) (0.17) (0.14) (0.14) (0.05) (0.05)
<CAPTION>
- ------- ------- ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(1.22) (0.99) (1.24) (0.51) (1.74) (0.47) (0.49) (0.33) (0.32)
<CAPTION>
- ------- ------- ------------- ------- ------------- ------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.16 $ 13.10 $ 11.67 $ 12.20 $ 10.94 $ 11.42 $ 11.47 $ 9.99 $ 10.02
<CAPTION>
======= ======= ============= ======= ============= ======= ============= ======= =============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
18.45% 17.64% 18.75% 11.60 % 11.89% 19.40% 19.69% 3.31% 3.53%
$89,659 $ 6,248 $ 29 $82,971 $ 49 $67,178 $34,458 $36,764 $13,028
6,815 477 3 6,801 4 5,883 3,004 3,679 1,300
1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
2.85% 2.15% 3.14% 3.16% 3.41% 3.06% 3.27% 4.40% 4.61%
- --------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
LifePath 2020 Fund
------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1998 Feb. 28, 1997 Feb. 29, 1996 Feb. 28, 1995
------------------------------ ------------------- ------------------ -----------------
Institu- Institu- Institu- Institu-
Class Class tional Class tional Class tional Class tional
A B Class A Class A Class A Class
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.98 $ 12.79 $ 12.28 $ 11.98 $ 11.98 $ 10.17 $ 10.17 $ 10.00 $ 10.00
<CAPTION>
-------- --------- --------- -------- --------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.28 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
<CAPTION>
-------- --------- --------- -------- --------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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
<CAPTION>
-------- --------- --------- -------- --------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM DISTRIBUTIONS (1.29) (1.12) (1.31) (0.70) (1.38) (0.49) (0.51) (0.23) (0.25)
<CAPTION>
-------- --------- --------- -------- --------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, END OF
PERIOD $ 14.70 $ 14.55 $ 13.85 $ 12.98 $ 12.28 $ 11.98 $ 11.98 $ 10.17 $ 10.17
<CAPTION>
======== ========= ========= ======== ========= ======== ======== ======= ========
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN 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%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LifePath 2030 Fund
- -------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1998 Feb. 28, 1997 Feb. 29, 1996 Feb 28, 1995
- ------------------------------ ------------------- ------------------ ------------------
Institu- Institu- Institu- Institu-
Class Class tional Class tional Class tional Class tional
A B Class A Class A Class A Class
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.83 $ 13.63 $ 13.70 $ 12.34 $ 12.37 $ 10.17 $ 10.18 $ 10.00 $ 10.00
- -------- --------- --------- -------- --------- -------- -------- ------- ---------
0.23 0.10 0.26 0.22 0.49 0.21 0.23 0.26 0.29
3.54 3.50 3.37 1.83 1.66 2.45 2.47 0.13 0.14
- -------- --------- --------- -------- --------- -------- -------- ------- ---------
3.77 3.60 3.63 2.05 2.15 2.66 2.70 0.39 0.43
(0.23) (0.09) (0.38) (0.23) (0.49) (0.22) (0.24) (0.22) (0.25)
(0.86) (0.86) (0.86) (0.33) (0.33) (0.27) (0.27) 0.00 0.00
- -------- --------- --------- -------- --------- -------- -------- ------- ---------
(1.09) (0.95) (1.24) (0.56) (0.82) (0.49) (0.51) (0.22) (0.25)
- -------- --------- --------- -------- --------- -------- -------- ------- ---------
$ 16.51 $ 16.28 $ 16.09 $ 13.83 $ 13.70 $ 12.34 $ 12.37 $ 10.17 $ 10.18
======== ========= ========= ======== ========= ======== ======== ======= =========
28.01% 26.93% 27.48% 17.01% 18.13% 26.53% 26.88% 4.03% 4.42%
$126,131 $12,469 $ 47 $101,078 $ 41 $83,012 $25,447 $41,153 $ 9,682
7,642 766 3 7,307 3 6,728 2,058 4,045 951
1.20% 1.70% 0.95% 1.20% 0.95% 1.20% 0.95% 1.20% 0.95%
1.50% 0.76% 1.74% 1.81% 2.06% 1.92% 2.15% 3.35% 3.59%
- --------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
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
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL FROM
DISTRIBUTIONS (1.73) (1.62) (1.77) (0.85) (1.33) (0.50) (0.52) (0.15) (0.17)
<CAPTION>
-------- ------- ------------- -------- ------------- -------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, END
OF PERIOD $ 17.07 $ 16.76 $ 16.35 $ 14.50 $ 13.94 $ 12.84 $ 12.86 $ 10.37 $ 10.37
<CAPTION>
======== ======= ============= ======== ============= ======== ============= ======= =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN 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%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These ratios include expenses charged to the Master Portfolio.
22
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS
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
is authorized to issue ten separate funds, of which the following commenced op-
erations on March 1, 1994: LifePath 2000, LifePath 2010, LifePath 2020,
LifePath 2030 and LifePath 2040 Funds (each, a "Fund," collectively, the
"Funds"). The following significant accounting policies are consistently fol-
lowed 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.
Each Fund is authorized to issue three classes of shares: Class A, Class B
and an Institutional Class. On March 1, 1997, the Retail Class' name was
changed to Class A and the Funds commenced offering Class B shares. The three
classes of shares differ principally in their respective distribution fees.
Shareholders of each class bear certain expenses that pertain to that particu-
lar class. All shareholders bear the common expenses of the Fund and earn in-
come from the portfolio, pro rata based on the average daily net assets of each
class. Dividends are 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; differences in per share dividend rates are
generally due to differences in separate class expenses, including distribution
fees and from the weightings of pro rata income and gain allocations.
INVESTMENT POLICY AND SECURITY VALUATION
Each Fund invests all of its assets in a separate series (each, a "Master
Portfolio") of Master Investment Portfolio ("MIP"). Each Master
23
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS
Portfolio has the same investment objective as the Fund bearing the correspond-
ing name. The value of each Fund's investment in its corresponding Master Port-
folio reflects that Fund's interest in the net assets of that Master Portfolio
( 58.07%, 46.07%, 54.64%, 59.27%, and 68.86%) for the LifePath 2000, LifePath
2010, LifePath 2020, LifePath 2030 and LifePath 2040 Funds, respectively, at
February 28, 1998. The Master Portfolios invest in a wide range of U.S. and
foreign equity, debt securities and money market instruments. Each Master Port-
folio 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 and money market instruments maturing in 60 days or less are valued at
amortized cost, which approximates market value. Any securities, restricted se-
curities or other assets for which market quotations are not readily available
are valued at fair value as determined in good faith in accordance with poli-
cies approved by the Master Portfolios' Board of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for by each Master Portfolio on the date
the securities are purchased or sold (trade date). Revenue is recognized by
each Master Portfolio as follows: dividend income is recognized on the ex-divi-
dend date, and interest income is recognized on a daily accrual basis. Realized
gains or losses are reported on the basis of identified cost of securities de-
livered. Bond discounts and premiums are amortized as required by the Internal
Revenue Code of 1986, as amended (the "Code"). All net investment income and
realized and unrealized capital gains and losses of each Master Portfolio are
allocated as required by the Code.
The performance of each Fund is directly affected by the performance of its
corresponding Master Portfolio. The financial statements of each Master Portfo-
lio, including the Portfolio of Investments, are included elsewhere in this re-
port and should be read in conjunction with the corresponding Fund's financial
statements.
24
<PAGE>
STAGECOACH TRUST
NOTES TO THE 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% of each Fund's av-
erage daily net assets.
On behalf of the Funds, the Trust may enter into servicing agreements with
certain financial institutions, securities dealers and other industry profes-
sionals (collectively, "Shareholder Servicing Agents") for the provision of
certain services to Fund shareholders. For the services provided pursuant to a
Shareholder Servicing Agreement, the Trust may pay each Shareholder Servicing
Agent a fee of up to 0.20% of the average daily net asset value of each Fund's
shares beneficially owned by customers of the Shareholder Servicing Agent. The
Trust has entered into a Shareholder Servicing Agreement with BGI.
25
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS
ORGANIZATION EXPENSES
Stephens Inc. ("Stephens"), is the Funds' co-administrator and distributor.
Certain officers and directors of the Trust are also officers of Stephens. At
February 28, 1998, these officers of Stephens indirectly 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.
The Trust has entered into an agreement with Stephens on behalf of Class A
and Class B shares for distribution services and has adopted Plans of
Distribution pursuant to Rule 12b-1 under the 1940 Act, whereby Stephens may be
compensated for services rendered and reimbursed for expenses incurred. For
providing these services, Stephens is entitled to 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 shares on an annual basis.
The Trust has also entered into administration services arrangements with WFB
and Stephens, as co-administrators, who have agreed jointly to provide general
administration services to the Funds, such as managing and coordinating third-
party service relationships. Under the arrangement, WFB and Stephens are
entitled to receive for these services a combined fee (expressed as a
percentage of average daily net assets) from each Fund of 0.10%. This fee is an
"all-in" or "semi-unified" fee and WFB and Stephens, in consideration thereof,
have agreed to bear all of the Funds' ordinary operating expenses, excluding,
generally, advisory fees and costs related to securities transactions. WFB and
Stephens may delegate certain of their administration duties to sub-
administrators.
26
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS
3. CAPITAL SHARE TRANSACTIONS
As of February 28, 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 2000 Fund
-----------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 1,069,311 3,580,908
Shares issued in reinvestments of
dividends--Class A 642,199 486,593
Shares redeemed--Class A (3,374,501) (5,539,884)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A (1,662,991) (1,472,383)
Shares sold--Class B 0 0
Shares issued in reinvestments of
dividends--Class B 0 0
Shares redeemed--Class B 0 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 0 0
Shares sold--Institutional Class 0 119,465
Shares issued in reinvestments of
dividends--Institutional Class 86 19,942
Shares redeemed--Institutional Class 0 (1,755,819)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS 86 (1,616,412)
</TABLE>
<TABLE>
<CAPTION>
LifePath 2010 Fund
-----------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 1,237,645 2,915,095
Shares issued in reinvestments of
dividends--Class A 625,584 275,092
Shares redeemed--Class A (1,849,051) (2,272,271)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A 14,178 917,916
Shares sold--Class B 479,146 0
Shares issued in reinvestments of
dividends--Class B 22,852 0
Shares redeemed--Class B (25,082) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 476,916 0
Shares sold--Institutional Class 0 221,309
Shares issued in reinvestments of
dividends--Institutional Class 283 25,767
Shares redeemed--Institutional Class (2,200) (3,246,296)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS (1,917) (2,999,220)
</TABLE>
27
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
LifePath 2020 Fund
-----------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 2,024,326 4,270,394
Shares issued in reinvestments of
dividends--Class A 1,004,243 275,620
Shares redeemed--Class A (2,988,127) (3,506,234)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A 40,442 1,039,780
Shares sold--Class B 826,855 0
Shares issued in reinvestments of
dividends--Class B 42,494 0
Shares redeemed--Class B (35,689) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 833,660 0
Shares sold--Institutional Class 0 24,129
Shares issued in reinvestments of
dividends--Institutional Class 572 29,678
Shares redeemed--Institutional Class (7) (3,533,425)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS 565 (3,379,618)
</TABLE>
<TABLE>
<CAPTION>
LifePath 2030 Fund
-----------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 1,342,637 2,403,224
Shares issued in reinvestments of
dividends--Class A 518,299 296,195
Shares redeemed--Class A (1,526,062) (2,120,516)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A 334,874 578,903
Shares sold--Class B 757,631 0
Shares issued in reinvestments of
dividends--Class B 30,895 0
Shares redeemed--Class B (22,437) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 766,089 0
Shares sold--Institutional Class 0 156,936
Shares issued in reinvestments of
dividends--Institutional Class 236 15,512
Shares redeemed--Institutional Class (297) (2,227,326)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS (61) (2,054,878)
</TABLE>
28
<PAGE>
STAGECOACH TRUST
NOTES TO THE FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
LifePath 2040 Fund
-----------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- --------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold--Class A 3,374,578 5,678,582
Shares issued in reinvestments of
dividends--Class A 1,443,325 196,508
Shares redeemed--Class A (3,354,023) (3,916,082)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS A 1,463,880 1,959,008
Shares sold--Class B 1,791,429 0
Shares issued in reinvestments of
dividends--Class B 122,045 0
Shares redeemed--Class B (78,517) 0
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--CLASS B 1,834,957 0
Shares sold--Institutional Class 0 148,636
Shares issued in reinvestments of
dividends--Institutional Class 171 19,679
Shares redeemed--Institutional Class 0 (2,763,338)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING--INSTITUTIONAL CLASS 171 (2,595,023)
</TABLE>
4. PORTFOLIO SECURITIES LOANED
As of February 28, 1998, certain Master Portfolios had loaned securities
which were collateralized by cash, money market mutual funds, and repurchase
agreements. Each Master Portfolio receives transaction fees for providing serv-
ices in connection with the securities lending program. The value of the secu-
rities on loan and the value of the related collateral are disclosed in the
corresponding Master Portfolio's financial statements.
29
<PAGE>
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
STAGECOACH TRUST:
We have audited the accompanying statements of assets and liabilities of Stage-
coach Trust (comprising respectively, LifePath 2000 Fund, LifePath 2010 Fund,
LifePath 2020 Fund, LifePath 2030 Fund, and LifePath 2040 Fund) as of February
28, 1998, and the related statements of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year pe-
riod then ended and the financial highlights for each of the years in the four-
year period then ended. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included verification of securities owned as of Feb-
ruary 28, 1998, by examination and other appropriate audit procedures. An audit
also includes assessing the accounting principles used and significant esti-
mates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds of Stagecoach Trust as of February 28, 1998, the
results of their operations, the changes in their net assets and their finan-
cial highlights for the periods indicated herein in conformity with generally
accepted accounting principles.
/s/ KPMG Peat Markwick LLP
San Francisco, California
April 3, 1998
30
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
31
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS
PERCENT OF NET ASSETS 23.63% 48.34%
ADVERTISING
PERCENT OF NET ASSETS 0.03% 0.04%
Omnicom Group 776 $ 35,502 1,340 $ 61,305
Outdoor Systems Inc 0 -- 600 17,888
------------ ------------
TOTAL ADVERTISING
- VALUE $ 35,502 $ 79,193
- COST $ 15,003 $ 37,316
AEROSPACE & DEFENSE
PERCENT OF NET ASSETS 0.28% 0.71%
Allied Signal Inc 922 $ 39,243 4,665 $ 198,554
Boeing Co 1,742 94,504 8,317 451,197
Briggs & Stratton Corp 52 2,304 268 11,876
Coltec Industries+ 200 5,213 500 13,031
Gencorp Inc 0 -- 0 --
General Dynamics Corp 63 5,465 602 52,224
Gulfstream Aerospace Corp+ 0 -- 400 16,200
Lockheed Martin Corp 360 42,008 1,699 198,252
Newport News Shipbuilding 64 1,749 293 7,979
Northrop Grumman Corp 139 19,321 554 77,006
Primex Technologies Inc 47 2,033 56 2,422
Rockwell International Corp 320 19,360 1,879 113,680
Sequa Corp Class A+ 110 8,271 0 --
Stewart & Stevenson Services 364 8,895 380 9,286
Sundstrand Corp 326 19,723 560 33,880
Textron Inc 267 20,008 1,469 110,083
United Technologies Corp 406 36,261 2,001 178,714
------------ ------------
TOTAL AEROSPACE & DEFENSE
- VALUE $ 324,358 $ 1,474,384
- COST $ 251,064 $ 1,062,982
AIRLINES
PERCENT OF NET ASSETS 0.24% 0.48%
Airtran Holdings Inc+ 300 $ 1,744 200 $ 1,163
Amr Corp+ 137 17,339 796 100,744
British Airways PLC ADR (UK) 760 72,200 2,400 228,000
Comair Holdings Inc 0 -- 600 15,975
Continental Airlines Class
B+ 0 -- 500 25,125
Delta Air Lines Inc 141 15,942 664 75,074
Fdx Corp+ 232 14,776 1,287 81,966
Japan Air Lines Co ADR
(Japan) 9,808 78,464 31,600 252,800
KLM Royal Dutch Airlines ADR
(NetherLands) 313 11,464 1,024 37,493
Northwest Airlines Corp
Class A+ 400 23,550 700 41,213
</TABLE>
32
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
69.76% 85.55% 99.42%
0.05% 0.06% 0.09%
3,040 $ 139,080 2,520 $ 115,290 6,116 $ 279,807
1,350 40,247 1,050 31,303 2,350 70,059
------------ ------------ ------------
$ 179,327 $ 146,593 $ 349,866
$ 78,337 $ 79,178 $ 203,852
1.05% 1.26% 1.22%
11,296 $ 480,786 9,737 $ 414,431 16,337 $ 695,344
19,888 1,078,924 17,157 930,767 28,885 1,567,011
557 24,682 459 20,339 829 36,735
700 18,244 900 23,456 1,800 46,913
485 13,216 0 -- 0 --
1,301 112,862 1,112 96,466 1,846 160,140
900 36,450 700 28,350 1,600 64,800
3,890 453,914 3,368 393,004 5,597 653,100
616 16,775 465 12,677 846 23,065
1,368 190,152 1,184 164,576 1,973 274,247
108 4,662 86 3,711 126 5,450
4,164 251,922 3,548 214,654 6,051 366,085
137 10,301 102 7,669 0 --
495 12,097 365 8,920 845 20,650
1,090 65,945 930 56,265 2,090 126,445
3,286 246,245 2,844 213,122 4,768 357,302
4,657 415,928 4,040 360,823 6,710 599,287
------------ ------------ ------------
$ 3,433,105 $ 2,949,230 $ 4,996,574
$ 2,331,805 $ 2,008,448 $ 4,079,521
0.69% 0.89% 0.94%
400 $ 2,325 200 $ 1,163 700 $ 4,069
1,842 233,128 1,596 201,994 2,602 329,316
5,425 515,375 4,900 465,500 9,050 859,750
1,200 31,950 1,000 26,625 2,100 55,913
900 45,225 900 45,225 1,900 95,475
1,443 163,149 1,275 144,155 2,175 245,911
2,958 188,388 2,489 158,518 4,458 283,919
72,475 579,800 73,774 590,192 118,787 950,296
2,358 86,362 2,198 80,502 3,980 145,767
1,500 88,313 1,300 76,538 2,800 164,850
</TABLE>
33
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Southwest Airlines Co 346 $ 9,926 1,869 $ 53,617
Ual Corp+ 300 25,538 600 51,075
USAir Group Inc+ 133 8,421 663 41,976
------------ ------------
TOTAL AIRLINES
- VALUE $ 279,364 $ 1,006,221
- COST $ 268,600 $ 962,134
APPAREL
PERCENT OF NET ASSETS 0.09% 0.18%
CVS Corp 647 $ 47,918 1,408 $ 104,280
Fruit of the Loom Inc Class
A+ 117 3,759 655 21,042
Hartmarx Corp+ 81 658 230 1,869
Land's End Inc+ 0 -- 0 --
Liz Claiborne Inc 91 4,550 585 29,250
Nike Inc Class B 383 16,804 2,411 105,783
Nine West Group Inc+ 200 5,500 300 8,250
Oshkosh B'Gosh Class A 26 1,021 49 1,923
Phillips Van Heusen Corp 0 -- 0 --
Reebok International Ltd+ 97 3,025 429 13,379
Russell Corp 75 2,034 298 8,083
Stride Rite Corp 63 772 375 4,594
VF Corp 130 6,199 1,211 57,750
Warnaco Group Inc Class A 300 11,138 500 18,563
------------ ------------
TOTAL APPAREL
- VALUE $ 103,378 $ 374,766
- COST $ 66,123 $ 279,742
AUTO PARTS & EQUIPMENT
PERCENT OF NET ASSETS 0.13% 0.34%
Bandag Inc 0 $ -- 100 $ 5,606
Bandag Inc Class A 100 5,163 100 5,163
Breed Technologies Inc 0 -- 0 --
Cooper Tire & Rubber Co 125 2,883 649 14,968
Dana Corp 152 8,294 891 48,615
Deluxe Corp 174 5,927 749 25,513
Eaton Corp 86 8,261 684 65,707
Echlin Inc 105 5,309 596 30,135
Genuine Parts Co 359 13,283 1,644 60,828
Goodyear Tire & Rubber Co 247 17,074 1,345 92,973
Illinois Tool Works Inc 359 21,518 2,013 120,654
ITT Industries Inc 236 8,083 1,081 37,024
Lear Corp+ 200 10,575 500 26,438
Mascotech Inc 0 -- 300 6,225
Meritor Automotive Inc 70 1,750 730 18,250
Modine Manufacturing Co 309 10,815 250 8,750
</TABLE>
34
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
4,134 $ 118,594 3,688 $ 105,800 8,366 $ 240,000
1,200 102,150 1,100 93,638 2,300 195,788
1,493 94,526 1,470 93,069 3,462 219,188
------------ ------------ ------------
$ 2,249,285 $ 2,082,919 $ 3,790,242
$ 2,046,107 $ 1,921,042 $ 3,594,674
0.27% 0.31% 0.35%
3,219 $ 238,407 2,749 $ 203,598 6,670 $ 493,997
1,442 46,324 1,151 36,976 2,093 67,238
389 3,161 354 2,876 618 5,021
547 21,538 0 -- 0 --
1,399 69,950 1,114 55,700 2,028 101,400
5,819 255,309 4,986 218,761 8,402 368,638
300 8,250 400 11,000 1,000 27,500
228 8,949 85 3,336 222 8,714
410 5,330 290 3,770 0 --
1,041 32,466 923 28,786 2,094 65,307
752 20,398 721 19,557 1,106 30,000
893 10,939 707 8,661 1,450 17,763
2,454 117,025 2,031 96,853 3,491 166,477
1,000 37,125 800 29,700 2,100 77,963
------------ ------------ ------------
$ 875,171 $ 719,574 $ 1,430,018
$ 639,350 $ 537,857 $ 1,249,550
0.48% 0.57% 0.63%
200 $ 11,213 100 $ 5,606 300 $ 16,819
200 10,325 200 10,325 400 20,650
0 -- 0 -- 100 2,175
1,631 37,615 1,228 28,321 2,207 50,899
2,102 114,690 1,794 97,885 3,057 166,798
1,621 55,215 1,377 46,904 2,299 78,310
1,574 151,202 1,294 124,305 2,219 213,163
1,252 63,304 1,080 54,608 1,781 90,052
3,574 132,238 3,049 112,795 5,151 190,587
3,108 214,840 2,687 185,739 4,471 309,058
4,572 274,034 3,904 233,996 9,687 580,614
2,416 82,748 1,944 66,582 3,542 121,313
1,000 52,875 800 42,300 1,800 95,175
0 -- 400 8,300 800 16,600
1,418 35,450 1,232 30,800 4,310 107,750
465 16,275 335 11,725 500 17,500
</TABLE>
35
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Navistar International Corp+ 134 $ 4,070 681 $ 20,685
PACCAR Inc 103 6,521 687 43,496
Pep Boys-Manny Moe & Jack 59 1,512 599 15,349
Strattec Security Corp+ 10 263 28 737
Superior Industries
International Inc 322 10,002 260 8,076
TRW Inc 231 12,662 1,060 58,101
------------ ------------
TOTAL AUTO PARTS & EQUIPMENT
- VALUE $ 153,965 $ 713,293
- COST $ 116,710 $ 513,307
AUTOMOBILES
PERCENT OF NET ASSETS 0.78% 1.61%
Chrysler Corp 1,119 $ 43,571 5,550 $ 216,103
Daimler-Benz
Aktiengesellschaft ADR
(Germany) 4,451 361,087 14,860 1,205,518
Fiat SpA ADR (UK) 4,288 76,112 14,030 249,033
Ford Motor Co 2,081 117,707 9,992 565,172
General Motors Corp Class A 1,211 83,483 5,827 401,699
General Motors Class H 500 20,719 1,000 41,438
Harley-Davidson Inc 736 21,344 1,500 43,500
Hertz Corp. Class A 0 -- 200 7,925
Honda Motor Co Ltd ADR
(Japan) 533 37,510 1,895 133,361
Nissan Motor Co Ltd ADR
(Japan) 3,635 32,261 11,246 99,808
Toyota Motor Corp ADR
(Japan) 2,178 119,518 6,951 381,436
------------ ------------
TOTAL AUTOMOBILES
- VALUE $ 913,312 $ 3,344,993
- COST $ 714,549 $ 2,588,596
BANK & FINANCE
PERCENT OF NET ASSETS 2.85% 5.64%
Advanta Corp Class B 163 $ 3,586 163 $ 3,586
Ahmanson (H F) & Co 134 8,367 872 54,446
Allied Irish Banks PLC ADR
(Ireland) 1,816 140,967 6,002 465,905
American Express Corp 761 68,538 3,759 338,545
Amsouth Bancorp 400 22,475 750 42,141
Associates First Capital
Corp 300 24,000 600 48,000
Banc One Corp 1,142 64,512 5,407 305,484
Banco Bilbao Vizcaya ADR
(Spain) 1,440 66,780 4,936 228,907
Banco Central
Hispanoamericano SA ADR
(Spain) 2,016 62,496 6,739 208,909
Banco Santander SA ADR
(Spain) 1,085 50,588 3,500 163,188
Bank of New York Inc 694 40,642 3,102 181,661
BankAmerica Corp 1,171 90,753 5,713 442,758
BankBoston Corp 256 25,520 1,302 129,793
Bankers Trust Corp 194 22,941 869 102,759
</TABLE>
36
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,512 $ 45,927 1,259 $ 38,242 2,284 $ 69,377
1,563 98,957 1,328 84,079 2,218 140,427
1,272 32,595 1,009 25,856 1,960 50,225
72 1,895 49 1,289 0 --
454 14,102 331 10,282 510 15,842
2,460 134,839 2,140 117,299 3,503 192,008
------------ ------------ ------------
$ 1,580,339 $ 1,337,238 $ 2,545,342
$ 1,130,611 $ 943,377 $ 1,953,881
2.38% 3.02% 3.02%
13,230 $ 515,143 11,346 $ 441,785 19,164 $ 746,198
33,458 2,714,280 30,441 2,469,526 55,953 4,539,187
31,770 563,918 28,775 510,756 52,980 940,395
23,967 1,355,633 20,643 1,167,620 34,675 1,961,305
14,137 974,569 12,129 836,143 20,415 1,407,359
2,100 87,019 1,800 74,588 3,900 161,606
3,018 87,522 2,788 80,852 5,980 173,420
400 15,850 400 15,850 800 31,700
4,187 294,660 4,292 302,050 6,944 488,684
26,944 239,128 27,449 243,610 44,207 392,337
16,271 892,871 16,569 909,224 26,644 1,462,089
------------ ------------ ------------
$ 7,740,593 $ 7,052,004 $ 12,304,280
$ 5,887,555 $ 5,604,964 $ 10,092,709
8.17% 9.98% 11.24%
272 $ 5,984 217 $ 4,774 380 $ 8,360
1,905 118,943 1,584 98,901 3,115 194,493
13,553 1,052,052 12,241 950,208 22,591 1,753,626
8,502 765,711 7,343 661,329 18,051 1,625,718
1,500 84,281 1,350 75,853 2,950 165,753
1,400 112,000 1,200 96,000 2,600 208,000
12,864 726,794 11,105 627,404 18,689 1,055,917
11,135 516,386 10,083 467,599 18,490 857,474
15,217 471,727 13,792 427,552 25,532 791,492
7,900 368,337 7,150 333,369 13,250 617,781
7,545 441,854 6,423 376,147 10,868 636,457
13,834 1,072,135 11,961 926,978 20,064 1,554,960
2,944 293,480 2,509 250,116 4,177 416,395
1,999 236,382 1,927 227,868 2,875 339,969
</TABLE>
37
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
BB&T Corp 500 $ 31,031 1,127 $ 69,944
Bear Stearns Co Inc 500 23,313 1,055 49,189
Beneficial Corp 44 5,192 452 53,336
California Federal Bank 0 -- 0 --
Campstead Mortgage Corp 0 -- 400 7,600
Capital One Financial Corp 0 -- 100 6,719
CCB Financial Corp 0 -- 200 21,725
Centura Banks Inc 0 -- 300 21,263
Charter One Financial Inc 350 21,178 651 39,447
Chase Manhattan Bank 729 90,442 3,334 413,624
Citicorp 797 105,603 3,816 505,620
Comdisco Inc 324 13,507 568 23,658
Comerica Inc 143 14,416 888 89,522
Commerce Bancshares Inc 157 11,226 357 25,526
Compass Bancshares Inc 400 18,400 600 27,600
ContiFinancial Corp+ 0 -- 100 2,713
CoreStates Financial Corp 313 26,429 1,768 149,286
Countrywide Credit
Industries Inc 1,304 57,947 945 41,993
Credit Acceptance Corp+ 200 1,638 200 1,638
Crescent Operating Inc+ 0 -- 80 1,590
Crescent Real Estate Co 0 -- 1,000 34,063
Crestar Financial Corp 504 27,846 1,140 62,985
Deposit Guaranty Corp 0 -- 400 22,175
Dime Bancorp Inc 500 15,250 1,200 36,600
Donaldson Lufkin & Jenrette
Inc 0 -- 100 8,188
Duke Realty Investments 0 -- 700 16,056
Edwards A G & Sons Inc 382 16,068 830 34,912
Equifax Inc 1,416 50,888 1,265 45,461
Federal Home Loan Mortgage
Corp 1,193 56,369 5,834 275,657
Federal National Mortgage
Assoc 1,861 118,755 8,434 538,195
Fifth Third Bancorp 273 21,567 1,282 101,278
Finova Group Inc 200 11,000 500 27,500
First American Corp 400 19,150 600 28,725
First Chicago NBD Corp 547 44,957 2,446 201,031
First Commerce Corp 200 15,800 300 23,700
First Commercial Corp 0 -- 310 20,479
First Empire State Corp 0 -- 0 --
First Hawaiian Inc 200 7,925 200 7,925
First of America Bank Corp 421 32,668 915 71,045
First Security Corp 842 19,512 1,655 38,375
First Tennessee National
Corp 616 19,635 1,280 40,800
First Union Corp 1,500 79,031 5,195 273,712
First Virginia Banks Inc 338 17,111 570 28,856
Firstar Corp 600 25,088 1,200 50,175
</TABLE>
38
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
2,752 $ 170,796 2,331 $ 144,668 3,962 $ 245,892
2,209 102,995 1,969 91,805 4,283 199,695
1,084 127,912 937 110,566 1,558 183,844
0 -- 0 -- 120 3,030
800 15,200 700 13,300 1,500 28,500
100 6,719 100 6,719 300 20,156
300 32,588 300 32,588 600 65,175
500 35,438 500 35,438 1,000 70,875
1,402 84,952 1,171 70,955 2,438 147,727
7,665 950,939 6,695 830,598 16,436 2,039,091
9,130 1,209,725 7,850 1,040,125 13,167 1,744,628
1,162 48,420 1,054 43,939 2,263 94,339
2,078 209,488 1,820 183,479 3,046 307,075
909 64,994 683 48,835 1,551 110,897
1,350 62,100 1,150 52,900 2,550 117,300
0 -- 200 5,425 300 8,138
3,988 336,737 3,412 288,101 5,715 482,560
2,207 98,074 1,876 83,365 3,064 136,156
0 -- 200 1,638 500 4,094
0 -- 0 -- 200 3,975
2,200 74,938 1,800 61,313 4,000 136,250
2,170 119,893 2,030 112,158 4,370 241,443
700 38,806 700 38,806 1,500 83,156
2,400 73,200 2,300 70,150 4,700 143,350
200 16,375 200 16,375 500 40,938
1,300 29,819 1,300 29,819 2,700 61,931
1,825 76,764 1,565 65,828 3,337 140,363
2,894 104,003 2,381 85,567 5,671 203,802
13,847 654,271 11,928 563,598 20,116 950,481
19,326 1,233,240 16,693 1,065,222 41,421 2,643,178
2,878 227,362 2,413 190,627 5,977 472,183
1,200 66,000 1,000 55,000 2,100 115,500
1,400 67,025 1,100 52,663 2,500 119,688
5,844 480,304 4,953 407,075 8,377 688,485
700 55,300 600 47,400 1,300 102,700
525 34,683 525 34,683 1,140 75,311
100 47,200 100 47,200 200 94,400
300 11,888 400 15,850 900 35,663
1,813 140,848 1,603 124,533 3,587 278,665
3,292 76,339 2,930 67,928 6,488 150,429
2,640 84,150 2,400 76,500 5,360 170,850
12,489 658,014 10,787 568,340 18,101 953,696
1,186 60,041 941 47,638 2,117 107,173
2,700 112,894 2,300 96,169 5,000 209,063
</TABLE>
39
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Firstmerit Corp 300 $ 8,831 600 $ 17,663
Firstplus Financial Group+ 0 -- 300 9,900
Fleet Financial Group Inc 466 36,727 2,171 171,102
Franklin Resources Inc 788 40,188 1,600 81,600
GATX Corp 123 9,533 270 20,925
Golden State Bancorp+ 0 -- 400 14,250
Golden West Financial 64 5,712 500 44,625
Green Tree Financial Inc 256 5,872 1,199 27,502
Greenpoint Financial Corp 200 14,850 400 29,700
Hibernia Corp Class A 600 12,000 1,400 28,000
Highwood Properties Inc 0 -- 500 17,406
Household International Inc 145 18,832 960 124,680
Huntington Bancshares Inc 1,454 52,162 1,736 62,279
Ing Groep NV Sponsored ADR
(Netherlands) 57 3,032 86 4,574
John Nuveen & Co Inc Class A 0 -- 100 3,531
Keycorp 382 26,764 1,894 132,698
Keystone Financial Inc 0 -- 500 20,938
Lehman Brothers Holdings 500 31,531 800 50,450
MBNA Corp 644 23,063 4,040 144,683
Medaphis Corp+ 800 8,300 900 9,338
Mellon Bank Corp 437 27,231 2,273 141,636
Mercantile Bancorp 654 36,379 1,405 78,153
Mercantile Bankshares 454 15,904 735 25,748
Mercury Financial Corp+ 1,800 1,013 1,800 1,013
Merrill Lynch & Co Inc 530 37,928 2,774 198,514
MGIC Investment Corp 205 15,106 884 65,140
Money Store Inc 400 9,975 400 9,975
Morgan (J P) & Co Inc 346 41,347 1,584 189,288
Morgan Stanley Dean Witter 984 68,590 4,717 328,681
National Australia Bank Ltd
ADR (Australia) 1,213 84,910 3,931 275,170
National City Corp 332 21,663 1,900 123,975
NationsBank Corp 1,662 113,847 7,797 534,095
Northern Trust Corp 534 40,617 920 69,978
Northfork Bancorp 0 -- 600 20,513
Norwest Corp 1,247 51,049 6,618 270,924
Old Kent Financial Corp 402 15,502 934 36,017
Old National Bancorp 346 16,176 231 10,799
Pacific Century Financial
Corp 748 16,129 1,820 39,244
Paine Webber Group Inc 500 21,000 1,000 42,000
Peoples Bank Bridgeport 0 -- 200 7,513
PNC Bank Corp 519 28,805 2,725 151,237
Price (T Rowe) & Associates 200 13,275 500 33,188
</TABLE>
40
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,000 $ 29,438 1,100 $ 32,381 2,400 $ 70,650
500 16,500 500 16,500 1,200 39,600
5,078 400,210 4,255 335,347 7,844 618,205
3,188 162,588 2,939 149,889 6,395 326,145
502 38,905 417 32,318 1,010 78,275
800 28,500 800 28,500 1,700 60,563
1,102 98,354 997 88,982 1,601 142,889
2,715 62,275 2,337 53,605 3,864 88,631
800 59,400 700 51,975 1,500 111,375
2,900 58,000 2,400 48,000 5,600 112,000
1,000 34,813 800 27,850 1,800 62,663
2,172 282,089 1,878 243,905 3,055 396,768
3,826 137,258 3,273 117,419 5,444 195,304
115 6,117 115 6,117 202 10,744
0 -- 0 -- 0 --
4,337 303,861 3,806 266,658 6,337 443,986
900 37,688 900 37,688 2,000 83,750
2,000 126,125 2,100 132,431 2,900 182,881
9,145 327,505 7,858 281,415 19,491 698,021
1,100 11,413 1,200 12,450 2,000 20,750
5,056 315,052 4,332 269,938 7,361 458,682
2,703 150,354 2,196 122,153 10,010 556,806
1,219 42,703 1,262 44,209 2,720 95,285
2,600 1,462 2,400 1,350 4,400 2,475
6,638 475,032 5,694 407,477 9,612 687,859
2,091 154,081 1,813 133,595 4,494 331,152
700 17,456 700 17,456 1,400 34,913
3,572 426,854 3,030 362,085 5,097 609,091
10,792 752,033 9,329 650,094 23,052 1,606,436
8,922 624,540 8,074 565,180 14,848 1,039,360
4,274 278,878 3,683 240,316 6,145 400,961
18,748 1,284,238 16,166 1,107,371 27,102 1,856,487
2,256 171,597 1,976 150,299 3,630 276,107
1,400 47,863 1,200 41,025 2,500 85,469
15,085 617,542 12,908 528,421 21,786 891,864
1,818 70,107 1,686 65,016 3,820 147,309
463 21,645 347 16,222 810 37,868
3,314 71,458 2,854 61,539 3,070 66,197
2,050 86,100 2,000 84,000 4,150 174,300
500 18,781 400 15,025 900 33,806
6,122 339,771 5,191 288,100 8,770 486,735
1,000 66,375 900 59,738 1,900 126,112
</TABLE>
41
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Provident Financial Group 0 $ -- 200 $ 10,250
Regions Financial Corp 670 26,633 1,400 55,650
Republic New York Corp 102 12,342 491 59,411
Ryder System Inc 139 5,100 687 25,204
Sabre Group Holding Inc+ 0 -- 200 6,600
Schwab (Charles) Corp 278 10,495 2,147 81,049
SLM Holding Corp 750 30,984 1,700 70,231
Star Banc Corp 400 23,550 900 52,988
State Street Corp 1,445 89,319 1,267 78,316
Summit Bancorp 704 34,980 1,655 82,233
SunTrust Banks Inc 339 25,001 1,872 138,060
Synovus Financial Corp 925 32,491 1,410 49,526
TCF Financial Corp 400 13,225 900 29,756
The Fund American Co 0 -- 0 --
U.S. Bancorp 447 51,433 2,006 230,815
Union Planters Corp 400 24,725 800 49,450
UnionBanCal Corp 100 9,313 100 9,313
United Asset Management Corp 500 13,281 700 18,594
Wachovia Corp 612 48,654 1,744 138,648
Washington Federal Inc 312 8,630 553 15,288
Washington Mutual Inc 407 27,320 2,089 140,224
Wells Fargo & Co 156 50,232 674 217,028
Wesco Financial Corp 0 -- 0 --
Westpac Banking Corp ADR
(Australia) 1,796 61,962 5,858 202,101
Wilmington Trust Corp 192 11,880 310 19,181
Zions Bancorp 400 17,200 700 30,100
------------ ------------
TOTAL BANK & FINANCE
- VALUE $ 3,313,700 $ 11,734,629
- COST $ 2,090,123 $ 6,930,444
BASIC INDUSTRIES
PERCENT OF NET ASSETS 0.38% 0.75%
ASARCO Inc 25 $ 553 402 $ 8,894
Avery-Dennison Corp 100 5,050 866 43,733
Baker Hughes Inc 328 13,428 1,504 61,570
Bemis Co 142 6,399 448 20,188
Boise Cascade Corp 69 2,299 503 16,756
Boise Cascade Office
Products+ 0 -- 100 1,806
Bowater Inc 195 9,653 410 20,295
Broken Hill Propriety Co Ltd
ADR (Australia) 790 15,553 2,578 50,754
Champion International Corp 142 7,251 801 40,901
Chesapeake Corp 256 8,688 200 6,788
</TABLE>
42
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
400 $ 20,500 300 $ 15,375 700 $ 35,875
2,838 112,811 2,428 96,513 5,380 213,855
1,090 131,890 902 109,142 1,599 193,479
1,567 57,489 1,303 47,804 2,160 79,245
400 13,200 300 9,900 500 16,500
4,857 183,352 4,245 160,249 10,409 392,940
3,450 142,528 3,500 144,594 7,000 289,188
1,700 100,088 1,600 94,200 3,500 206,062
3,032 187,416 2,515 155,458 6,126 378,663
3,058 151,920 2,971 147,622 5,018 249,307
4,154 306,357 3,576 263,730 6,043 445,671
3,091 108,571 2,815 98,877 6,679 234,600
2,000 66,125 1,700 56,206 3,700 122,331
0 -- 0 -- 100 13,075
4,493 516,976 3,855 443,566 9,591 1,103,564
1,600 98,900 1,300 80,356 3,300 203,981
200 18,625 200 18,625 400 37,250
1,400 37,188 1,200 31,875 2,600 69,063
4,095 325,552 3,538 281,271 5,928 471,276
1,129 31,178 996 27,501 2,037 56,278
4,648 311,997 4,045 271,521 10,003 671,451
1,775 571,550 1,624 522,391 2,473 796,306
0 -- 0 -- 100 36,400
13,159 453,986 11,924 411,378 21,965 757,793
649 40,157 604 37,373 1,375 85,078
1,200 51,600 1,100 47,300 2,700 116,100
------------ ------------ ------------
$ 26,661,417 $ 23,315,850 $ 45,482,045
$ 15,240,587 $ 13,348,240 $ 30,421,589
1.11% 1.36% 1.50%
875 $ 19,359 621 $ 13,740 1,370 $ 30,311
1,922 97,061 1,659 83,779 3,873 195,587
3,398 139,106 2,818 115,362 4,860 198,956
1,075 48,442 892 40,196 1,634 73,632
1,147 38,209 996 33,179 1,723 57,397
800 14,450 200 3,613 400 7,225
852 42,174 707 34,997 1,675 82,913
5,741 113,026 5,193 102,237 9,571 188,429
1,932 98,653 1,643 83,896 2,714 138,584
361 12,251 266 9,027 650 22,059
</TABLE>
43
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Consolidated Papers Inc 86 $ 4,993 280 $ 16,258
Crown Vantage Inc+ 21 144 48 330
Cyprus Amax Minerals 140 2,293 800 13,100
Deltic Timber Corp 141 3,964 166 4,661
Dover Corp 310 11,974 1,748 67,517
Fort James Corp 576 26,136 1,546 70,150
Georgia-Pacific Corp 137 8,040 793 46,539
Glatfelter (P H) Co 486 8,535 280 4,918
Harnischfeger Industries Inc 110 3,891 405 14,327
Homestake Mining Co 222 2,220 1,287 12,870
Ikon Office Solutions Inc 194 6,341 1,228 40,140
Inco Ltd 236 4,174 1,469 25,983
Longview Fibre Co 554 8,552 540 8,336
Louisiana-Pacific Corp 123 2,698 942 20,665
LTB Corp 900 10,856 1,100 13,269
Mark IV Industries Inc 247 5,743 432 10,044
Mead Corp 112 3,829 975 33,333
Minnesota Mining &
Manufacturing Co 685 58,439 3,265 278,545
Mitsubishi Corp ADR (Japan) 3,294 50,115 14,325 217,941
NACCO Industries Inc Class A 18 2,341 48 6,243
Newmont Gold Co 100 2,925 100 2,925
Newmont Mining Corp 164 4,746 1,336 38,661
Potlatch Corp 102 4,418 245 10,612
Rayonier Inc 156 6,611 250 10,594
Sealed Air Corp+ 200 13,463 400 26,925
Smith International Inc+ 214 11,395 400 21,300
St Joe Paper Corp 300 10,238 300 10,238
Stone Container Corp+ 87 979 850 9,562
U.S. Industries Inc 292 8,140 757 21,101
Union Camp Corp 75 4,481 644 38,479
Unisource Worldwide Inc 94 1,281 665 9,061
Varco International Inc 584 14,527 0 --
Varian Associates Inc 177 10,266 290 16,820
Watts Industries Inc Class A 308 9,259 0 --
Wausau-Mosinee Paper Corp 392 8,477 316 6,834
Westvaco Corp 206 6,695 932 30,290
Weyerhauser Co 369 18,427 1,719 85,843
Whitman Corp 64 1,140 877 15,622
Willamette Industries Inc 219 8,089 1,020 37,676
------------ ------------
TOTAL BASIC INDUSTRIES
- VALUE $ 439,709 $ 1,569,397
- COST $ 384,202 $ 1,492,604
</TABLE>
44
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
570 $ 33,096 490 $ 28,451 1,070 $ 62,127
104 715 81 557 132 907
1,856 30,392 1,445 23,662 2,934 48,044
308 8,654 199 5,601 334 9,399
4,052 156,508 3,718 143,608 8,494 328,081
4,164 188,942 3,619 164,212 5,963 270,571
1,889 110,861 1,536 90,144 2,697 158,280
769 13,506 489 8,588 770 13,523
998 35,304 854 30,210 1,380 48,818
2,961 29,610 2,296 22,960 4,626 46,260
2,671 87,308 2,225 72,730 3,816 124,735
3,405 60,226 2,750 48,641 5,033 89,021
890 13,739 575 8,877 1,330 20,532
2,221 48,723 1,774 38,917 3,116 68,357
1,900 22,919 2,000 24,125 4,000 48,250
870 20,228 762 17,717 1,675 38,944
2,111 72,170 1,940 66,324 3,012 102,973
7,472 637,455 6,429 548,474 15,846 1,351,862
33,788 514,051 34,400 523,362 55,390 842,703
152 19,770 149 19,379 269 34,987
200 5,850 200 5,850 300 8,775
3,105 89,851 2,693 77,929 4,461 129,090
540 23,389 432 18,711 865 37,465
462 19,577 526 22,289 1,119 47,418
906 60,985 736 49,542 1,600 107,700
797 42,440 627 33,388 1,400 74,550
600 20,475 600 20,475 1,100 37,538
2,014 22,657 1,479 16,639 3,054 34,358
1,425 39,722 1,340 37,353 2,001 119,560
1,374 82,097 1,151 68,772 2,674 36,433
1,174 15,996 1,092 14,878 2,852 79,500
1,048 26,069 748 18,607 0 --
735 42,630 590 34,220 1,265 73,370
464 13,949 334 10,041 0 --
572 12,370 407 8,801 371 8,023
2,103 68,348 1,707 55,477 2,874 93,405
3,999 199,700 3,441 171,835 5,792 289,238
2,051 36,533 1,594 28,393 4,065 72,408
2,262 83,553 1,858 68,630 3,176 117,314
------------ ------------ ------------
$ 3,633,099 $ 3,168,395 $ 6,069,612
$ 3,411,265 $ 2,963,119 $ 5,947,578
</TABLE>
45
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
BEVERAGES
PERCENT OF NET ASSETS 0.84% 1.79%
Anheuser-Busch Inc 852 $ 39,938 3,900 $ 182,813
Cadbury Schweppes PLC ADR
(UK) 1,457 74,307 4,962 253,062
Coca-Cola Co 4,437 304,766 19,699 1,353,075
Coca-Cola Enterprises Co 1,036 34,253 2,130 70,423
Coors (Adolph) Co Class B 69 2,156 343 10,719
Diageo PLC ADR (UK) 3,657 152,007 12,095 502,698
Energy Group PLC ADR (UK) 0 -- 0 --
Hanson PLC ADR (UK) 2,529 64,015 8,356 211,511
Kirin Brewery Co ADR (Japan) 1,597 141,534 5,002 443,302
Louis Vuitton Moet Hennessey
ADR (France) 1,037 41,221 3,421 135,985
Pepsico Inc 2,762 100,986 12,152 444,307
Seagrams Co Ltd 644 24,472 3,275 124,450
------------ ------------
TOTAL BEVERAGES
- VALUE $ 979,655 $ 3,732,345
- COST $ 816,351 $ 2,954,926
BIOTECHNOLOGY
PERCENT OF NET ASSETS 0.03% 0.03%
Agouron Pharmaceuticals Inc 0 $ -- 300 $ 11,063
Biogen Inc+ 418 18,444 660 29,123
Chiron Corp+ 496 9,517 892 17,115
Genzyme Corp - General
Division 326 9,637 320 9,460
Genzyme Corp - Tissue
Repair+ 44 319 12 87
Quest Diagnostics Inc+ 46 713 240 3,720
------------ ------------
TOTAL BIOTECHNOLOGY
- VALUE $ 38,630 $ 70,568
- COST $ 29,269 $ 64,348
BROADCASTING
PERCENT OF NET ASSETS 0.16% 0.30%
British Sky Broadcasting ADR
(UK) 817 $ 31,608 2,585 $ 100,007
Chancellor Media Corp Class
A 0 -- 800 35,800
Clear Channel Communications
Inc+ 404 36,613 842 76,306
Hearst-Argyle Television+ 0 -- 500 17,563
Jacor Communications Inc+ 0 -- 100 5,788
Kingworld Productions 204 5,444 580 15,479
LIN Television Corp+ 200 11,025 100 5,513
TCA Cable TV Inc 266 13,101 0 --
TCI Satellite Entertainment
Class A+ 107 716 543 3,631
Tele-Communications Inc
Class A+ 776 22,553 4,151 120,638
Tele-Communications
International Inc Class A+ 300 5,325 200 3,550
</TABLE>
46
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2.59% 3.24% 3.99%
8,938 $ 418,969 7,766 $ 364,031 19,012 $ 891,188
11,081 565,131 10,027 511,377 18,562 946,662
45,057 3,094,853 39,007 2,679,293 96,460 6,625,596
4,264 140,979 3,844 127,092 8,465 279,874
738 23,063 556 17,375 1,159 36,219
27,143 1,128,113 24,682 1,025,846 44,721 1,858,717
0 -- 0 -- 0 --
18,888 478,099 17,086 432,489 31,595 799,748
11,386 1,009,084 11,580 1,026,278 18,702 1,657,465
7,722 306,950 6,983 277,574 12,913 513,292
27,649 1,010,917 24,065 879,877 58,969 2,156,054
7,186 273,068 6,140 233,320 10,329 392,502
------------ ------------ ------------
$ 8,449,226 $ 7,574,552 $ 16,157,317
$ 6,666,172 $ 5,974,797 $ 13,050,240
0.04% 0.05% 0.06%
500 $ 18,438 500 $ 18,438 1,100 $ 40,563
1,282 56,568 1,222 53,921 2,590 114,284
1,624 31,160 1,600 30,700 3,252 62,398
734 21,699 544 16,082 1,100 32,519
71 515 52 377 54 392
515 7,983 389 6,030 825 12,788
------------ ------------ ------------
$ 136,363 $ 125,548 $ 262,944
$ 124,665 $ 100,328 $ 234,725
0.42% 0.54% 0.61%
5,817 $ 225,045 5,240 $ 202,723 9,702 $ 375,346
1,400 62,650 1,400 62,650 3,800 170,050
1,998 181,069 2,169 196,566 2,849 258,191
0 -- 900 31,613 1,900 66,738
0 -- 200 11,575 400 23,150
1,398 37,309 1,168 31,171 2,224 59,353
300 16,538 200 11,025 400 22,050
371 18,272 276 13,593 0 --
1,150 7,691 883 5,905 1,866 12,479
9,284 269,816 7,934 230,582 600 10,650
400 7,100 400 7,100 19,822 576,077
</TABLE>
47
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Tribune Co 241 $ 15,560 967 $ 62,432
USA Networks Inc+ 261 13,454 365 18,772
Viacom Inc Class B+ 587 28,176 3,110 149,280
------------ ------------
TOTAL BROADCASTING
- VALUE $ 183,575 $ 614,759
- COST $ 124,818 $ 460,424
BUILDING MATERIALS &
SERVICES
PERCENT OF NET ASSETS 0.18% 0.28%
American Standard Co Inc+ 200 $ 8,900 500 $ 22,250
Cooper Industries Inc 233 13,077 1,084 60,840
Corning Inc 320 13,000 1,943 78,934
Cytec Industries Inc+ 100 4,888 300 14,663
Dal Tile International Inc 0 -- 0 --
Danaher Corp 200 14,388 280 20,143
Diebold Inc 366 18,803 635 32,623
Fastenal Co 100 4,388 300 13,163
Georgia-Pacific (Timber
Group) 137 3,125 893 20,372
Kennametal Inc 300 15,788 300 15,788
Lafarge Corp 300 10,069 300 10,069
Lawson Products Inc 0 -- 0 --
Martin Marietta Inc 0 -- 100 3,806
Owens Corning Fiberglass
Corp 28 865 411 12,690
Owens Illinois Inc+ 706 27,093 1,158 44,438
PPG Industries Inc 305 19,768 1,564 101,367
Snap-On Inc 138 5,865 577 24,523
Southdown Inc 175 11,200 0 --
Stanley Works 112 5,355 766 36,624
USG Corp+ 200 10,925 300 16,388
Valspar Corp 200 7,013 400 14,025
Vulcan Materials Co 200 20,125 300 30,188
------------ ------------
TOTAL BUILDING MATERIALS &
SERVICES
- VALUE $ 214,635 $ 572,894
- COST $ 127,145 $ 402,329
BUSINESS SERVICES
PERCENT OF NET ASSETS 0.16% 0.37%
Accustaff Inc+ 0 $ -- 900 $ 25,425
APAC Teleservices Inc+ 100 1,475 200 2,950
Apollo Group Inc+ 0 -- 300 12,713
Cendant Corp+ 772 28,950 6,377 239,137
Concord EFS Inc+ 0 -- 600 18,675
Ecolab Inc 124 3,573 1,006 28,985
</TABLE>
48
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,299 148,429 1,995 128,802 4,699 303,379
950 48,915 772 39,761 1,606 82,709
7,102 340,896 6,039 289,872 10,180 488,640
------------ ------------ ------------
$ 1,363,730 $ 1,262,938 $ 2,448,812
$ 1,044,466 $ 961,746 $ 1,856,010
0.38% 0.49% 0.56%
900 $ 40,050 900 $ 40,050 1,800 $ 80,100
2,438 136,833 2,050 115,056 3,437 192,902
4,238 172,169 3,678 149,419 8,791 357,134
600 29,325 600 29,325 1,300 63,538
0 -- 0 -- 200 2,263
662 47,623 622 44,745 1,280 92,080
1,509 77,525 1,191 61,188 2,655 136,401
600 26,325 500 21,938 1,100 48,263
1,889 43,093 3,236 73,821 5,697 129,963
411 21,629 300 15,788 600 31,575
500 16,781 500 16,781 1,100 36,919
197 5,467 0 -- 0 --
0 -- 200 7,613 300 11,419
1,017 31,400 946 29,208 1,995 61,596
2,641 101,348 2,201 84,463 5,315 203,963
3,543 229,631 3,091 200,335 5,121 331,905
1,261 53,593 1,087 46,198 1,708 72,590
253 16,192 178 11,392 0 --
1,759 84,102 1,487 71,097 3,370 161,128
700 38,238 600 32,775 1,300 71,012
600 21,038 700 24,544 1,500 52,594
600 60,375 600 60,375 1,200 120,750
------------ ------------ ------------
$ 1,252,737 $ 1,136,111 $ 2,258,095
$ 891,337 $ 836,713 $ 1,814,509
0.52% 0.63% 0.89%
1,600 $ 45,200 1,600 $ 45,200 3,400 $ 96,050
400 5,900 400 5,900 600 8,850
600 25,425 500 21,188 1,000 42,375
14,452 541,950 12,482 468,075 42,288 1,585,800
1,100 34,238 1,000 31,125 2,200 68,475
2,478 71,397 1,958 56,415 4,878 140,547
</TABLE>
49
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Intl Technology Corp+ 0 $ -- 0 $ --
Kelly Services Inc Class A 106 3,776 120 4,275
Laidlaw Environmental
Services+ 131 630 353 1,699
Manpower Inc 400 16,875 800 33,750
Nielson (A C) Corp+ 73 1,825 453 11,325
Ogden Corp 101 2,778 525 14,438
Olsten Corp 291 4,692 525 8,466
Paychex Inc 485 25,038 927 47,856
Paymentech Inc+ 0 -- 100 1,650
Quintiles Transnational Corp 200 9,775 500 24,438
Reuters Group PLC ADR (UK) 755 45,198 2,614 156,505
Robert Half International
Inc 300 13,575 650 29,413
Rollins Inc 388 8,003 210 4,331
Security Dynamics Technology
I+ 0 -- 300 10,688
Teletech Holdings Inc+ 0 -- 100 956
Waste Management Inc 741 18,525 3,993 99,825
------------ ------------
TOTAL BUSINESS SERVICES
- VALUE $ 184,688 $ 777,500
- COST $ 164,504 $ 671,110
CHEMICALS
PERCENT OF NET ASSETS 0.75% 1.53%
Air Products & Chemicals Inc 130 $ 10,912 948 $ 79,573
Airgas Inc+ 400 7,175 500 8,969
Albemarle corp 313 7,629 260 6,338
Arco Chemical Co 100 4,731 200 9,463
Autoliv Inc 44 1,359 999 30,844
Betz Labs Inc 96 6,162 240 15,405
Cabot Corp 310 10,928 740 26,085
ChemFirst Inc 35 925 84 2,221
Clorox Co 94 8,249 808 70,902
Courtaulds PLC ADR (UK) 14,458 84,941 48,019 282,112
Crompton & Knowles Corp 450 13,556 740 22,293
Dow Chemical Co 441 40,352 1,989 181,993
Du Pont (E I) De Nemours 2,040 125,078 9,023 553,223
Eastman Chemical Co 124 8,122 646 42,313
Ethyl Corp 1,031 8,506 1,010 8,333
Ferro Corp 457 12,310 375 10,102
FMC Corp+ 102 7,382 338 24,463
Fuller (H B) Co 0 -- 0 --
Geon Co 0 -- 0 --
Georgia Gulf Corp 237 7,806 360 11,858
Goodrich (B F) Co 92 4,560 526 26,070
Grace (W R) Co 42 3,525 636 53,384
</TABLE>
50
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
137 $ 1,361 0 $ -- 0 $ --
289 10,296 219 7,802 885 31,528
769 3,701 623 2,998 822 3,956
1,700 71,719 1,400 59,063 3,100 130,781
918 22,950 707 17,675 1,530 38,250
884 24,310 806 22,165 1,744 47,960
1,117 18,012 988 15,932 2,216 35,733
1,804 93,132 1,640 84,665 3,512 181,307
0 -- 200 3,300 400 6,600
1,000 48,875 900 43,988 2,000 97,750
5,545 332,003 5,031 301,231 9,354 560,067
1,500 67,875 1,250 56,563 2,700 122,175
645 13,303 400 8,250 675 13,922
600 21,375 600 21,375 1,300 46,313
0 -- 0 -- 300 2,869
9,156 228,900 7,864 196,600 13,148 328,700
------------ ------------ ------------
$ 1,681,922 $ 1,469,510 $ 3,590,008
$ 1,417,756 $ 1,351,754 $ 3,141,725
2.20% 2.68% 3.13%
2,185 $ 183,403 1,876 $ 157,467 3,168 $ 265,914
600 10,763 900 16,144 2,100 37,669
412 10,043 432 10,530 986 24,034
200 9,463 300 14,194 600 28,388
2,269 70,055 1,833 56,594 4,010 123,809
527 33,827 507 32,543 1,105 70,927
1,372 48,363 1,332 46,953 2,790 98,348
314 8,301 224 5,922 347 9,183
1,910 167,602 1,597 140,137 4,005 351,439
108,246 635,945 98,153 576,649 177,445 1,042,489
1,585 47,748 1,270 38,259 2,830 85,254
4,511 412,757 3,878 354,837 6,497 594,475
20,601 1,263,099 17,808 1,091,853 44,140 2,706,334
1,615 105,783 1,375 90,062 2,285 149,668
2,029 16,739 1,308 10,791 2,530 20,872
654 17,617 496 13,361 1,222 32,918
728 52,689 581 42,050 1,098 79,468
225 12,797 0 -- 0 --
0 -- 0 -- 300 6,000
745 24,538 465 15,316 640 21,080
1,413 70,032 1,211 60,020 2,053 101,752
1,336 112,141 1,126 94,514 2,798 234,857
</TABLE>
51
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Great Lakes Chemical Corp 77 $ 3,744 538 $ 26,160
Hanna (M A) Co 280 6,493 550 12,753
Hercules Inc 92 4,445 778 37,587
IMC Global Inc 436 16,650 926 35,362
Imperial Chemical Industries
PLC ADR (UK) 1,259 92,064 4,041 295,498
International Flavor &
Fragrances 176 8,096 943 43,378
Johns Manville Corp 0 -- 400 4,825
Lawter International Inc 0 -- 0 --
Lubrizol Corp 329 12,687 560 21,595
Lyondell Petrochemical 176 4,796 380 10,355
Millennium Chemicals Inc 311 8,015 736 18,986
Mississippi Chemical Corp 11 204 28 519
Monsanto Co 1,040 52,910 4,781 243,233
Montedison Spa ADR (Italy) 5,054 51,172 17,007 172,196
Morton International Inc 238 7,869 1,272 42,056
Nalco Chemical Co 74 2,979 639 25,720
OEA Inc 0 -- 0 --
Olin Corp 270 12,369 460 21,074
Praxair Inc 218 10,423 1,291 61,726
Premark International Inc 461 14,349 606 18,862
Rhone Poulenc Rorer Class A 2,434 112,420 7,955 367,422
Rohm & Haas Co 71 7,238 535 54,537
RPM Inc 472 8,024 858 14,586
Rubbermaid Inc 162 4,698 1,229 35,641
Schulman (A) Inc 403 10,277 420 10,710
Sigma-Aldrich Corp 228 9,006 898 35,471
Solutia Inc 143 3,906 1,146 31,300
Terra Industries Inc 500 5,938 400 4,750
Thiokol Inc 116 11,093 200 19,125
Union Carbide Corp 245 11,377 1,071 49,735
Valhi Inc 0 -- 0 --
Wellman Inc 363 7,804 280 6,020
------------ ------------
TOTAL CHEMICALS
- VALUE $ 875,254 $ 3,187,126
- COST $ 706,451 $ 2,482,784
COMPUTER SOFTWARE
PERCENT OF NET ASSETS 1.13% 2.07%
3Com Corp+ 1,890 $ 67,568 2,775 $ 99,206
Adobe Systems Inc 122 5,391 563 24,878
Altera Corp+ 420 18,113 820 35,363
America Online Inc+ 400 48,450 900 109,013
Anixter International Inc+ 500 8,625 500 8,625
At Home Corp Series A+ 0 -- 200 6,825
</TABLE>
52
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,200 $ 58,350 1,045 $ 50,813 1,712 $ 83,246
967 22,422 900 20,869 1,762 40,856
1,916 92,567 1,661 80,247 2,723 131,555
2,145 81,912 1,793 68,470 3,910 149,313
9,153 669,313 8,260 604,012 15,280 1,117,350
2,074 95,404 1,798 82,708 4,089 188,094
600 7,238 600 7,238 1,000 12,063
677 7,912 0 -- 0 --
1,217 46,931 1,042 40,182 2,300 88,694
817 22,263 692 18,857 1,545 42,101
1,512 39,038 1,346 34,752 2,946 76,051
106 1,961 74 1,369 116 2,146
10,779 548,382 9,224 469,271 23,000 1,170,125
38,429 389,094 34,830 352,654 64,117 649,185
2,676 88,475 2,344 77,499 3,814 126,100
1,388 55,867 1,152 46,368 1,899 76,435
308 6,526 223 4,725 0 --
1,078 49,386 858 39,307 1,860 85,211
3,140 150,131 2,692 128,711 4,500 215,156
1,133 35,265 996 31,001 2,150 66,919
17,936 828,419 16,306 753,133 29,975 1,384,470
1,260 128,441 1,033 105,301 1,772 180,633
1,497 25,449 1,607 27,319 3,485 59,245
3,051 88,479 2,510 72,790 4,226 122,554
686 17,493 616 15,708 1,185 30,218
2,049 80,936 1,719 67,901 2,869 113,325
2,097 57,274 2,120 57,903 4,539 123,971
700 8,313 500 5,938 1,100 13,063
295 28,209 310 29,644 700 66,938
2,504 116,279 2,179 101,187 3,554 165,039
0 -- 0 -- 300 2,888
495 10,643 365 7,847 845 18,168
------------ ------------ ------------
$ 7,172,077 $ 6,271,920 $ 12,685,990
$ 5,559,323 $ 4,854,289 $ 10,293,905
2.92% 3.63% 4.75%
6,387 $ 228,335 5,378 $ 192,264 13,526 $ 483,555
1,423 62,879 1,247 55,102 2,204 97,389
1,836 79,178 1,596 68,828 3,380 145,762
1,900 230,138 1,700 205,913 3,800 460,275
500 8,625 700 12,075 1,200 20,700
0 -- 300 10,238 600 20,475
</TABLE>
53
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Autodesk Inc 86 $ 4,074 416 $ 19,708
Automatic Data Processing 409 24,975 2,388 145,817
Bay Networks Inc+ 302 10,230 1,680 56,910
BMC Software Inc+ 512 39,168 980 74,970
Broderbund Software Inc+ 200 4,950 200 4,950
Cadence Design Systems Inc 964 33,680 1,924 67,220
Cambridge Technology
Partners+ 0 -- 400 18,200
Choicepoint Inc+ 141 6,750 140 6,703
Citrix Systems Inc 0 -- 350 14,722
Computer Associates
International Inc 964 45,429 4,367 205,795
Computer Sciences Corp+ 141 14,761 666 69,722
Compuware Corp 600 25,275 1,500 63,188
CSK Corp ADR (Japan) 1,916 45,745 6,100 145,638
DST Systems Inc+ 200 10,575 300 15,863
Electronic Arts Inc+ 300 13,238 600 26,475
Electronic Data Systems Corp 1,488 65,193 3,330 145,896
First Data Corp 563 19,142 3,700 125,800
Fiserv Inc+ 217 11,881 430 23,542
Gartner Group Inc Class A+ 200 7,975 500 19,938
HBO & Co 1,409 76,262 1,683 91,092
I2 Technologies Inc+ 0 -- 100 5,656
Information Resources Inc+ 0 -- 0 --
Informix Corp+ 1,390 10,859 1,320 10,313
Intuit Inc+ 200 9,300 400 18,600
J.D. Edwards 0 -- 0 --
Keane Inc 0 -- 700 32,550
Mentor Graphics Corp+ 600 6,263 700 7,306
Microsoft Corp 4,238 359,171 19,222 1,629,065
MobileMedia Corp+ 300 150 200 100
NEC Corp ADR (Japan) 1,183 66,987 3,663 207,417
Netscape Communications
Corp+ 201 3,894 505 9,784
Networks Associates Inc+ 350 22,619 650 42,006
Novell Inc+ 535 5,626 3,146 33,082
Objective Systems Integrator
C+ 0 -- 100 1,313
Oracle Systems Corp 1,706 42,010 7,818 192,518
Parametric Technology Corp+ 125 7,570 1,053 63,772
Peoplesoft Inc 600 26,813 1,500 67,031
Platinum Technology Inc+ 0 -- 600 15,225
Reynolds & Reynolds Co Class
A 346 7,353 620 13,175
Shiva Corp+ 300 4,088 300 4,088
Siebel Systems Inc+ 0 -- 1 62
SPS Transaction Services
Inc+ 0 -- 100 2,919
Sterling Commerce Inc+ 377 17,201 737 33,626
Sterling Software Inc+ 100 5,269 300 15,806
</TABLE>
54
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
971 $ 46,001 759 $ 35,958 1,817 $ 86,080
5,379 328,455 4,554 278,079 11,348 692,937
4,271 144,680 3,564 120,731 6,010 203,589
2,132 163,098 1,852 141,678 4,080 312,120
200 4,950 200 4,950 500 12,375
3,850 134,509 3,490 121,932 7,730 270,067
700 31,850 600 27,300 1,400 63,700
364 17,427 267 12,792 484 23,172
750 31,547 750 31,547 1,500 63,094
9,986 470,591 8,603 405,417 21,260 1,001,878
1,576 164,987 1,298 135,884 2,216 231,988
2,900 122,163 2,700 113,738 6,700 282,238
14,200 339,025 14,411 344,063 23,202 553,948
400 21,150 500 26,438 1,200 63,450
1,000 44,125 1,000 44,125 2,200 97,075
6,691 293,149 6,476 283,730 13,400 587,088
8,548 290,632 7,309 248,506 12,349 419,866
999 54,695 829 45,388 1,895 103,751
1,000 39,875 800 31,900 1,800 71,775
3,799 205,621 3,141 170,007 8,103 438,575
0 -- 100 5,656 200 11,313
403 5,642 0 -- 0 --
3,118 24,359 2,138 16,703 5,180 40,469
800 37,200 700 32,550 1,500 69,750
0 -- 0 -- 900 29,700
1,200 55,800 1,200 55,800 2,700 125,550
852 8,893 1,000 10,438 1,600 16,700
44,040 3,732,390 38,128 3,231,348 94,116 7,976,331
400 200 300 150 700 350
8,710 493,204 8,814 499,093 14,199 804,018
1,516 29,373 920 17,825 2,045 39,622
900 58,163 1,275 82,397 2,750 177,719
7,045 74,082 5,717 60,118 9,883 103,926
0 -- 0 -- 200 2,625
17,917 441,206 15,616 384,544 38,117 938,631
2,349 142,261 2,012 121,852 5,004 303,055
2,900 129,594 2,700 120,656 5,800 259,188
1,000 25,375 1,000 25,375 2,100 53,288
1,212 25,755 1,152 24,480 2,400 51,000
600 8,175 400 5,450 600 8,175
4 246 3 185 8 492
0 -- 0 -- 200 5,838
1,654 75,464 1,296 59,130 2,874 131,126
600 31,613 600 31,613 1,200 63,225
</TABLE>
55
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Storage Technology Corp+ 259 $ 17,677 535 $ 36,514
Stratus Computer Inc+ 161 8,080 310 15,558
Structural Dynamics
Research+ 303 8,711 0 --
Sun Microsystems Inc+ 522 24,860 3,050 145,256
Sungard Data Systems Inc 400 13,675 800 27,350
Symantec Corp+ 378 9,521 600 15,113
Synopsys Inc+ 400 13,975 600 20,963
Total System Services Inc 300 7,875 300 7,875
Yahoo! Inc 0 -- 100 7,319
------------ ------------
TOTAL COMPUTER SOFTWARE
- VALUE $ 1,306,997 $ 4,307,421
- COST $ 942,394 $ 2,771,750
COMPUTER SYSTEMS
PERCENT OF NET ASSETS 0.67% 1.66%
Adaptec Inc+ 500 $ 13,219 1,100 $ 29,081
Apple Computer Inc+ 235 5,552 1,090 25,751
Cabletron Systems Inc+ 257 3,984 1,334 20,677
Ceridian Corp+ 131 6,100 632 29,428
Cisco Systems Inc 1,764 116,204 7,991 526,407
Cognex Corp+ 0 -- 300 7,219
Cognizant Corp 180 8,989 1,332 66,517
Compaq Computer Corp 2,756 88,364 12,144 389,367
Data General Corp+ 64 1,320 444 9,158
Dell Computer Corp 554 77,491 2,588 361,997
Digital Equipment Corp+ 224 12,754 1,347 76,695
EMC Corp 638 24,404 4,000 153,000
Exabyte Corp+ 0 -- 0 --
Gateway 2000 Inc 400 17,600 700 30,800
GTECH Holdings Corp+ 100 3,531 300 10,594
Harris Corp 104 5,272 692 35,076
Hewlett-Packard Co 1,774 118,858 8,303 556,301
Intergraph Corp+ 54 527 367 3,578
International Business
Machine Corp 1,680 175,455 8,102 846,153
Iomega Corp 1,200 10,950 2,400 21,900
Komag Inc+ 400 5,750 600 8,625
NCR Corp+ 171 5,365 1,059 33,226
Quantum Corp 500 12,563 1,100 27,638
Rational Software Corp+ 0 -- 900 12,150
Seagate Technology Inc+ 397 9,652 2,179 52,977
Sequent Computer Systems+ 340 7,204 0 --
Shared Medical System Corp 42 3,210 155 11,848
Silicon Graphics Inc+ 284 4,278 1,549 23,332
Sybase Inc+ 700 7,350 700 7,350
Unisys Corp+ 280 5,005 1,592 28,457
</TABLE>
56
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,084 $ 73,983 1,067 $ 72,823 2,125 $ 145,031
366 18,369 471 23,638 1,050 52,697
434 12,478 319 9,171 0 --
6,829 325,231 5,842 278,225 14,527 691,848
1,800 61,538 1,400 47,863 3,600 123,075
1,236 31,132 1,061 26,724 2,100 52,894
900 31,444 1,100 38,431 2,300 80,356
400 10,500 400 10,500 1,000 26,250
200 14,638 200 14,638 400 29,275
------------ ------------ ------------
$ 9,535,993 $ 8,475,959 $ 19,220,439
$ 5,988,902 $ 5,431,393 $ 13,160,541
2.43% 2.92% 3.67%
2,400 $ 63,450 2,000 $ 52,875 4,300 $ 113,681
2,547 60,173 2,128 50,274 3,644 86,090
3,094 47,957 2,697 41,804 4,826 74,803
1,516 70,589 1,169 54,432 2,833 131,912
18,353 1,209,004 15,847 1,043,922 39,301 2,588,955
700 16,844 600 14,438 1,300 31,281
3,070 153,308 2,665 133,083 6,160 307,615
27,565 883,803 24,044 770,911 58,795 1,885,115
1,001 20,646 772 15,923 1,522 31,391
6,002 839,530 5,111 714,901 12,694 1,775,573
2,928 166,713 2,487 141,604 4,300 244,831
9,088 347,616 7,794 298,121 19,346 739,984
340 2,720 0 -- 0 --
1,400 61,600 1,200 52,800 2,600 114,400
500 17,656 600 21,188 1,300 45,906
1,570 79,579 1,333 67,566 2,327 117,950
18,920 1,267,640 16,401 1,098,867 40,599 2,720,133
861 8,395 586 5,714 992 9,672
19,410 2,027,132 16,748 1,749,119 28,083 2,932,918
4,400 40,150 4,100 37,413 8,800 80,300
1,100 15,813 800 11,500 1,100 15,813
2,181 68,429 1,864 58,483 3,925 123,147
2,380 59,797 2,070 52,009 4,300 108,038
1,800 24,300 1,600 21,600 3,200 43,200
4,913 119,447 4,238 103,036 6,966 169,361
471 9,979 341 7,225 0 --
461 35,238 364 27,823 904 69,100
3,639 54,812 3,078 46,362 5,561 83,763
1,400 14,700 1,200 12,600 2,500 26,250
3,511 62,759 3,000 53,625 4,991 89,214
</TABLE>
57
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Unova Inc+ 34 $ 650 434 $ 8,300
Wallace Computer Services
Inc 90 3,274 100 3,638
Western Digital Corp 700 12,775 900 16,425
Xylan Corp+ 100 2,413 100 2,413
------------ ------------
TOTAL COMPUTER SYSTEMS
- VALUE $ 770,063 $ 3,436,078
- COST $ 580,493 $ 2,105,603
CONTAINER & PACKAGING
PERCENT OF NET ASSETS 0.10% 0.22%
Ball Corp 54 $ 1,762 296 $ 9,657
Crown Cork & Seal Co 185 9,990 1,169 63,126
First Brands Corp 486 12,515 480 12,360
International Paper Co 522 24,338 2,716 126,634
Jefferson Smurfit Corp+ 700 10,456 600 8,963
Jefferson Smurfit Group ADR
(Ireland) 785 20,508 2,760 72,105
Sonoco Products 388 15,011 877 33,929
Temple-Inland Inc 149 8,884 485 28,918
Tenneco Inc 278 11,433 1,540 63,333
Tupperware Corp 63 1,693 500 13,438
U.S. Office Products Co 0 -- 1,200 22,200
------------ ------------
TOTAL CONTAINER & PACKAGING
- VALUE $ 116,590 $ 454,663
- COST $ 110,277 $ 445,708
ELECTRICAL EQUIPMENT
PERCENT OF NET ASSETS 0.59% 1.38%
Aeroquip-Vickers Inc 52 $ 3,019 244 $ 14,167
Alliance Semiconductor Corp 0 -- 0 --
Arrow Electronics Inc 386 12,859 792 26,384
Avnet Inc 230 14,663 350 22,313
FORE Systems Inc+ 400 6,425 900 14,456
General Electric Co 5,883 457,403 26,082 2,027,876
Grainger ( W W) Inc 41 3,969 447 43,275
Handleman Co+ 59 398 132 891
Hitachi Ltd ADR (Japan) 732 55,449 2,384 180,588
Hubbell Inc Class B 332 16,725 566 28,512
Masco Corp 256 13,920 1,484 80,692
Maxim Integrated Products
Inc 600 24,225 1,200 48,450
Motorola Inc 1,026 57,200 5,001 278,806
National Service Industries
Inc 39 2,162 442 24,503
Raychem Corp 54 2,346 709 30,797
</TABLE>
58
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,058 $ 20,234 818 $ 15,644 1,661 $ 31,767
200 7,275 210 7,639 400 14,550
1,800 32,850 1,600 29,200 3,500 63,875
0 -- 100 2,413 200 4,825
------------ ------------ ------------
$ 7,910,138 $ 6,814,114 $ 14,875,413
$ 4,688,431 $ 3,985,595 $ 9,579,170
0.31% 0.37% 0.39%
642 $ 20,945 538 $ 17,552 904 $ 29,493
2,529 136,566 2,155 116,370 3,737 201,798
694 17,871 704 18,128 1,060 27,295
6,088 283,853 5,233 243,989 8,764 408,622
1,400 20,913 1,100 16,431 2,300 34,356
6,290 164,326 5,637 147,267 10,335 270,002
1,800 69,638 1,622 62,751 3,655 141,403
1,141 68,032 959 57,180 1,635 97,487
3,453 142,005 2,847 117,083 4,842 199,127
1,136 30,530 909 24,429 2,302 61,866
2,500 46,250 2,100 38,850 4,750 87,875
------------ ------------ ------------
$ 1,000,929 $ 860,030 $ 1,559,324
$ 992,406 $ 850,243 $ 1,620,993
2.00% 2.45% 3.21%
552 $ 32,051 433 $ 25,141 996 $ 57,830
0 -- 0 -- 250 1,641
1,698 56,565 1,520 50,635 3,250 108,266
714 45,518 659 42,011 1,515 96,581
1,800 28,913 1,500 24,094 3,200 51,400
59,704 4,644,303 51,593 4,011,356 127,637 9,923,777
956 92,553 885 85,679 1,443 139,700
467 3,152 307 2,072 521 3,517
5,658 428,594 5,714 432,836 9,276 702,657
1,008 50,778 1,034 52,088 2,202 110,926
3,264 177,480 2,817 153,174 4,721 256,704
2,400 96,900 2,200 88,825 4,800 193,800
11,857 661,028 10,208 569,096 17,199 958,844
871 48,286 774 42,909 1,319 73,122
1,623 70,499 1,366 59,336 3,262 141,693
</TABLE>
59
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Symbol Technologies Inc 190 $ 9,702 315 $ 16,085
Thomas & Betts Corp 68 3,855 454 25,736
------------ ------------
TOTAL ELECTRICAL EQUIPMENT
- VALUE $ 684,320 $ 2,863,531
- COST $ 526,924 $ 1,906,203
ELECTRONICS
PERCENT OF NET ASSETS 1.08% 2.18%
Advanced Micro Devices+ 200 $ 4,688 1,286 $ 30,141
American Power Conversion+ 300 8,700 780 22,620
AMP Inc 389 17,189 1,920 84,840
Analog Devices Inc+ 801 25,832 1,526 49,214
Applied Materials Inc 515 18,958 2,946 108,450
Atmel Corp+ 662 10,758 1,060 17,225
Beckman Instruments Inc 94 4,547 250 12,094
C-Cube Microsystems Inc+ 100 2,075 300 6,225
Canon Inc ADR (Japan) 278 31,796 1,006 115,061
CBS Corp 1,410 43,622 6,277 194,195
Cirrus Logic Inc+ 634 7,014 780 8,629
Commscope Inc+ 50 669 346 4,628
Cypress Semiconductor Corp+ 800 7,550 840 7,928
EG&G Inc 25 673 453 12,203
Electronics for Imaging Inc+ 400 8,825 500 11,031
Emerson Electric Co 755 48,178 3,678 234,702
Etec Systems Inc+ 0 -- 200 10,488
Fuji Photo Film Co Ltd ADR
(Japan) 975 38,513 3,270 129,165
General Instrument Corp+ 156 2,603 204 3,404
General Semiconductor Inc 37 516 260 3,624
General Signal Corp 135 5,484 441 17,916
Honeywell Inc 184 14,582 1,039 82,341
Imation Corp+ 276 4,640 516 8,675
Input/Output Inc+ 500 10,781 500 10,781
Integrated Device Technology
Inc+ 700 10,544 800 12,050
Intel Corp 2,901 260,183 13,101 1,174,996
International Rectifier
Corp+ 500 7,281 500 7,281
International Specialty
Products Corp+ 0 -- 200 3,188
Jabil Circuit 0 -- 100 5,263
Johnson Controls Inc 196 10,890 700 38,894
KLA Instruments Corp+ 404 18,647 736 33,971
Kyocera Corp ADR (Japan) 430 45,903 1,219 130,128
Lam Research Corp+ 300 8,512 300 8,475
Lattice Semiconductor+ 0 -- 200 10,713
Lexmark International Group
Cl+ 0 -- 500 21,375
</TABLE>
60
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
585 $ 29,872 555 $ 28,340 1,325 $ 67,658
1,110 62,923 973 55,157 1,554 88,092
------------ ------------ ------------
$ 6,529,415 $ 5,722,749 $ 12,976,208
$ 4,336,648 $ 3,881,404 $ 9,205,070
3.18% 3.97% 4.68%
2,877 $ 67,430 2,422 $ 56,766 3,984 $ 93,375
1,494 43,326 1,409 40,861 3,060 88,740
4,369 193,055 3,770 166,587 6,363 281,165
3,138 101,201 2,861 92,267 6,229 200,885
6,712 247,086 5,719 210,531 14,220 523,474
1,866 30,323 1,888 30,680 3,926 63,798
450 21,769 505 24,429 1,080 52,245
300 6,225 400 8,300 700 14,525
2,209 252,654 2,241 256,314 3,644 416,783
14,074 435,414 12,022 371,931 20,306 628,217
1,496 16,549 1,066 11,593 1,510 16,704
792 10,593 612 8,186 1,552 20,758
1,364 12,873 1,424 13,439 3,170 29,917
972 26,183 723 19,476 1,467 39,517
1,000 22,063 1,000 22,063 2,000 44,125
8,795 561,231 7,666 489,187 12,823 818,268
400 20,975 300 15,731 700 36,706
7,234 285,743 7,336 289,772 11,900 470,050
2,625 43,805 2,343 39,099 5,783 96,504
594 8,279 459 6,397 1,164 16,223
1,061 43,103 799 32,459 1,398 56,794
2,489 197,253 2,152 170,546 3,672 291,006
702 11,802 731 12,290 1,617 27,186
1,000 21,563 700 15,094 1,100 23,719
1,700 25,606 800 12,050 2,100 31,631
29,806 2,673,226 25,825 2,316,180 63,812 5,723,139
1,000 14,563 700 10,194 1,100 16,019
300 4,781 300 4,781 500 7,969
300 15,788 200 10,525 500 26,313
1,681 93,401 1,535 85,288 2,450 136,128
1,684 77,727 1,660 76,619 2,528 116,683
2,931 312,884 3,005 320,784 4,802 512,614
500 14,188 500 14,125 1,200 34,050
500 26,781 400 21,425 900 48,206
1,000 42,750 1,000 42,750 2,100 89,775
</TABLE>
61
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Linear Technology Corp 386 $ 29,240 720 $ 54,540
Litton Industries Inc+ 101 6,287 390 24,278
LSI Logic Corp+ 128 3,032 1,164 27,572
Macromedia Inc+ 400 5,000 400 5,000
Matsushita Electric
Industries Co 257 37,554 833 121,722
MEMC Electronic Materials
Inc+ 300 5,063 300 5,063
Microchip Technology Inc+ 400 9,675 500 12,094
Micron Electronics Inc+ 0 -- 200 2,575
Micron Technology Inc+ 335 11,118 1,912 63,455
Molex Inc 316 9,559 396 11,979
Molex Inc Class A 312 8,853 678 19,238
National Semiconductor+ 266 6,351 1,312 31,324
Novellus System Inc 200 9,588 300 14,381
Perkin-Elmer Corp 29 2,122 406 29,714
Philips Electronics NV ADR
(Netherlands) 543 42,286 1,947 151,623
Pioneer Electronics Corp 2,192 38,086 6,817 118,445
Pitney Bowes Inc 516 24,188 2,346 109,969
Pixar Inc+ 0 -- 100 3,700
Policy Management Systems
Corp+ 248 17,949 170 12,304
Premier Farnell PLC ADR (UK) 2,749 37,283 9,119 123,676
Rambus Inc+ 0 -- 100 4,475
Raytheon Co Class A 358 20,776 971 56,341
Raytheon Co Class B 384 22,584 2,073 121,918
Read-Rite Corp+ 400 5,700 500 7,125
Sanmina Corp+ 0 -- 100 7,969
SCI Systems Inc 200 9,000 500 22,500
Sensormatic Electronics 535 9,964 870 16,204
Solectron Corp 500 24,188 1,000 48,375
SONY Corp ADR (Japan) 468 42,325 1,522 137,646
Tektronix Inc 3 134 376 16,779
Teradyne Inc+ 376 17,743 820 38,694
Texas Instruments Inc 660 38,198 3,097 179,239
Thermo Instrument Systems
Inc 250 8,781 156 5,488
Vishay Intertechnology Inc 441 8,985 446 9,087
Vitesse Semiconductor Corp 0 -- 300 15,234
VLSI Technology Inc+ 200 3,863 400 7,725
Xerox Corp 485 43,013 2,641 234,224
Xilinx Inc+ 247 10,837 700 30,713
Zenith Electronics Corp+ 44 292 89 590
------------ ------------
TOTAL ELECTRONICS
- VALUE $ 1,249,770 $ 4,534,892
- COST $ 1,056,277 $ 3,196,428
</TABLE>
62
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
1,500 $ 113,625 1,410 $ 106,808 3,050 $ 231,038
808 50,298 603 37,537 1,379 85,843
2,742 64,951 2,341 55,452 4,060 96,171
700 8,750 500 6,250 900 11,250
1,961 286,551 2,071 302,625 3,316 484,550
400 6,750 400 6,750 800 13,500
1,100 26,606 950 22,978 2,000 48,375
400 5,150 300 3,863 500 6,438
4,211 139,753 3,635 120,637 6,077 201,680
840 25,410 718 21,720 1,583 47,886
1,445 41,002 1,288 36,547 2,676 75,932
3,284 78,406 2,844 67,900 4,646 110,923
800 38,350 600 28,763 1,300 62,319
789 57,745 643 47,060 1,887 138,105
4,281 333,383 3,897 303,479 7,166 558,052
16,304 283,282 16,637 289,068 26,756 464,886
5,388 252,563 4,564 213,938 11,274 528,469
0 -- 0 -- 200 7,400
303 21,930 258 18,673 440 31,845
20,599 279,374 18,684 253,402 34,410 466,686
300 13,425 200 8,950 500 22,375
2,120 122,960 1,785 103,549 3,141 182,178
6,800 399,925 5,823 342,465 9,751 573,481
600 8,550 800 11,400 1,700 24,225
300 23,906 300 23,906 600 47,813
1,000 45,000 1,000 45,000 2,200 99,000
1,723 32,091 1,048 19,519 1,885 35,108
2,300 111,263 1,900 91,913 4,200 203,175
3,440 311,105 3,483 314,994 5,516 498,853
924 41,234 808 36,057 1,874 83,627
1,790 84,466 1,500 70,781 3,250 153,359
7,081 409,813 6,045 349,854 15,157 877,211
250 8,781 313 10,977 621 21,821
882 17,971 771 15,709 1,649 33,598
700 35,547 500 25,391 1,200 60,937
1,000 19,313 800 15,450 1,700 32,831
5,910 524,143 5,227 463,570 12,625 1,119,680
1,459 64,014 1,174 51,509 2,620 114,952
279 1,848 230 1,524 367 2,431
------------ ------------ ------------
$ 10,371,427 $ 9,264,687 $ 18,951,214
$ 7,429,296 $ 6,736,462 $ 14,710,355
</TABLE>
63
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ENERGY & RELATED
PERCENT OF NET ASSETS 1.68% 3.55%
AGL Resources Inc 538 $ 10,928 440 $ 8,938
Amerada Hess Corp 142 8,422 850 50,416
Amoco Corp 814 69,190 4,000 340,000
Anadarko Petroleum Corp 441 28,445 525 33,863
Apache Corp 166 5,644 758 25,772
Ashland Inc 109 6,070 706 39,315
Atlantic Richfield Corp 523 40,663 2,675 207,981
British Petroleum Co PLC ADR
(UK) 1,259 104,102 4,232 349,906
Burlington Resources Inc 284 12,709 1,526 68,289
Chesapeake Energy Corp 0 -- 400 2,825
Chevron Corp 1,120 90,860 5,455 442,537
Coastal Corp 212 13,489 904 57,517
Columbia Gas System Inc 141 10,760 451 34,417
Consolidated Natural Gas Co 142 8,165 851 48,933
Cooper Cameron Corp 0 -- 500 26,813
Devon Energy Corp 0 -- 200 6,813
Diamond Offshore Drilling
Inc 400 18,125 600 27,188
Dresser Industries Inc 314 14,032 1,599 71,455
Eastern Enterprises 39 1,728 200 8,863
EEX Corp+ 137 1,173 1,213 10,386
El Paso Natural Gas Co 427 28,342 456 30,267
ELF Aquitaine ADR (France) 1,606 91,843 5,412 309,499
Enron Corp 528 24,837 2,723 127,981
Enron Oil & Gas Co 300 6,413 600 12,825
Ensco International Inc 700 20,388 1,300 37,863
Exxon Corp 4,257 271,916 20,508 1,309,949
Fina Inc Class A 0 -- 0 --
Freeport-McMoRan Sulphur
Inc+ 74 1,036 76 1,064
Global Marine Inc+ 700 16,231 1,400 32,463
Halliburton Co 461 21,437 2,121 98,626
Helmerich & Payne Inc 90 2,604 520 15,048
Indiana Energy Inc 0 -- 0 --
Kerr - McGee Corp 43 2,908 448 30,296
MAPCO Inc 374 20,126 620 33,364
MCN Corp 616 22,677 500 18,406
Mobil Corp 1,329 96,269 6,520 472,293
Murphy Oil Corp 293 14,632 380 18,976
Nabors Industries Inc+ 600 13,725 900 20,588
National Fuel Gas Co 400 18,650 320 14,920
Natural Gas Clearinghouse
Inc 0 -- 100 1,550
NICOR Inc 44 1,810 450 18,506
Noble Affiliates Inc 338 13,182 530 20,670
</TABLE>
64
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
5.22% 6.34% 6.62%
798 $ 16,209 558 $ 11,334 520 $ 10,563
1,824 108,186 1,546 91,697 2,678 158,839
9,696 824,160 8,342 709,070 14,048 1,194,080
1,161 74,885 889 57,341 2,306 148,737
1,841 62,594 1,548 52,632 2,674 90,916
1,505 83,810 1,295 72,115 2,104 117,167
6,392 496,978 5,552 431,668 9,220 716,855
9,639 797,035 8,746 723,221 16,036 1,326,018
3,518 157,431 3,054 136,667 5,082 227,419
1,000 7,063 500 3,531 1,000 7,063
13,133 1,065,415 11,261 913,549 18,989 1,540,483
2,076 132,086 1,810 115,161 3,095 196,919
1,066 81,349 990 75,549 1,624 123,932
1,925 110,688 1,741 100,108 2,713 155,997
800 42,900 800 42,900 1,800 96,525
500 17,031 400 13,625 900 30,656
1,400 63,438 1,200 54,375 2,500 113,281
3,538 158,104 2,927 130,800 5,074 226,744
426 18,877 282 12,496 686 30,398
1,934 16,560 2,344 20,071 4,867 41,674
842 55,888 627 41,617 778 51,640
12,229 699,346 11,149 637,583 20,503 1,172,515
6,385 300,095 5,496 258,312 9,135 429,345
1,200 25,650 1,200 25,650 2,400 51,300
2,900 84,463 2,400 69,900 5,200 151,450
49,166 3,140,478 42,426 2,709,961 71,242 4,550,583
100 6,325 100 6,325 200 12,650
144 2,016 75 1,050 143 2,002
3,115 72,229 2,600 60,288 5,800 134,488
4,776 222,084 4,114 191,301 10,250 476,625
920 26,623 840 24,308 1,620 46,879
352 10,516 0 -- 0 --
962 65,055 784 53,018 1,374 92,917
1,236 66,512 976 52,521 2,200 118,388
930 34,236 670 24,664 600 22,088
15,626 1,131,908 13,473 975,950 22,665 1,641,796
777 38,801 697 34,806 1,570 78,402
1,885 43,119 1,629 37,263 3,400 77,775
582 27,136 412 19,210 385 17,951
1,600 24,800 0 -- 3,200 49,600
1,009 41,495 801 32,941 1,509 62,058
873 34,047 858 33,462 1,920 74,880
</TABLE>
65
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Noble Drilling Corp+ 0 $ -- 1,200 $ 34,050
Occidental Petroleum Corp 600 15,338 2,960 75,665
ONEOK Inc 49 1,715 240 8,400
Oryx Energy Co+ 199 5,062 842 21,418
Pacific Enterprises Co 152 5,520 704 25,564
Parker Drilling Co+ 0 -- 0 --
Pennzoil Co 132 8,836 438 29,319
Peoples Energy Corp 63 2,276 360 13,005
Phillips Petroleum Co 419 20,531 2,379 116,571
Pioneer Natural Resources
L.C. 376 8,907 697 16,510
Pogo Producing Co 300 8,419 300 8,419
Pride International Inc+ 0 -- 400 9,125
Quaker State Corp 0 -- 0 --
Questar Corp 227 9,648 340 14,450
R&B Falcon Corp+ 472 12,508 1,026 27,189
Ranger Oil Ltd 0 -- 0 --
Repsol SA 837 37,247 2,800 124,600
Rowan Co Inc+ 126 3,552 804 22,663
Royal Dutch Petroleum Corp 4,056 220,292 13,468 731,481
Santa Fe Energy Resources
Inc 83 929 809 9,051
Schlumberger Ltd 875 65,953 3,980 299,993
Seagull Energy Corp+ 391 6,598 610 10,294
Services (B J) Co 0 -- 700 24,063
Sonat Offshore Drilling Co 132 5,693 736 31,740
Sun Co Inc 115 4,593 658 26,279
Texaco Inc 942 52,575 4,786 267,119
Tosco Corp 671 24,911 1,340 49,748
Total Compagnie Francaise
des Petroles SA ADR
(France) 2,228 123,245 7,175 396,884
Transocean Offshore Inc 400 17,200 800 34,400
Trans Texas Gas Corp 0 -- 0 --
Ultramar Diamond Shamrock
Corp 410 14,635 855 30,513
Union Pacific Resources
Group 332 7,429 2,058 46,048
Union Texas Petroleum
Holdings Corp 200 4,038 500 10,094
United Meridian Corp+ 0 -- 400 10,925
Unocal Corp 384 14,472 2,091 78,805
USX - Marathon Group 515 17,800 2,520 87,098
Utilicorp United Inc 491 17,676 380 13,680
Valero Energy Corp 180 6,390 470 16,685
Vastar Resources Inc 200 7,438 200 7,438
Washington Gas & Light 464 12,499 360 9,698
Weatherford Enterra Inc+ 400 13,850 500 17,313
Western Atlas Inc 134 10,176 445 33,792
</TABLE>
66
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,700 76,613 2,200 62,425 4,800 136,200
6,727 171,959 5,779 147,726 9,785 250,129
603 21,105 507 17,745 920 32,200
1,889 48,051 1,613 41,031 4,063 103,353
1,695 61,550 1,436 52,145 2,370 86,061
844 9,284 619 6,809 0 --
932 62,386 887 59,374 1,384 92,642
674 24,348 582 21,025 1,141 41,219
5,246 257,054 4,475 219,275 7,604 372,596
1,134 26,862 1,186 28,093 3,462 82,006
600 16,838 500 14,031 1,100 30,869
800 18,250 800 18,250 1,700 38,781
419 6,337 299 4,522 0 --
710 30,175 640 27,200 1,430 60,775
2,016 53,424 1,698 44,997 4,042 107,113
1,508 9,708 1,103 7,101 0 --
6,225 277,013 5,650 251,425 10,350 460,575
1,764 49,723 1,472 41,492 3,279 92,427
30,452 1,653,924 27,687 1,503,750 50,874 2,763,094
1,875 20,977 1,239 13,861 2,826 31,616
8,994 677,923 7,846 591,392 19,246 1,450,667
1,248 21,060 1,103 18,613 2,275 38,391
1,400 48,125 1,200 41,250 2,800 96,250
1,760 75,900 1,474 63,566 3,126 134,809
1,413 56,432 1,226 48,963 1,987 79,356
10,972 612,375 9,433 526,479 15,803 882,005
2,867 106,437 2,377 88,246 5,235 194,349
16,304 901,823 14,778 817,415 27,219 1,505,566
0 -- 1,500 64,500 3,200 137,600
1,700 73,100 0 -- 300 4,950
1,944 69,366 1,537 54,837 3,425 122,240
5,133 114,851 4,322 96,705 7,193 160,943
800 16,150 1,000 20,188 2,100 42,394
700 19,119 600 16,388 1,300 35,506
4,985 187,872 4,166 157,006 7,044 265,471
5,839 201,810 5,066 175,094 8,357 288,839
675 24,300 494 17,784 472 16,992
1,164 41,322 984 34,932 1,960 69,580
300 11,156 300 11,156 700 26,031
624 16,809 454 12,230 440 11,852
1,057 36,599 900 31,163 1,900 65,788
1,078 81,861 931 70,698 1,593 120,968
</TABLE>
67
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Williams Co Inc 588 $ 19,220 2,896 $ 94,663
Witco Corp 316 12,581 580 23,091
------------ ------------
TOTAL ENERGY & RELATED
- VALUE $ 1,953,283 $ 7,395,224
- COST $ 1,529,318 $ 5,522,631
ENGINEERING & CONSTRUCTION
PERCENT OF NET ASSETS 0.04% 0.08%
Armstrong World Industries
Inc 102 $ 8,007 394 $ 30,929
Centex Corp 57 4,165 249 18,193
Clayton Homes Inc 626 12,447 884 17,565
Fleetwood Enterprises Inc 32 1,500 328 15,375
Fluor Corp 123 5,789 749 35,250
Foster Wheeler Corp 102 2,729 341 9,122
Granite Construction Inc 0 -- 0 --
Kaufman & Broad Home Corp 59 1,527 308 7,970
Pulte Corp 50 2,275 237 10,784
Rouse Co 400 13,300 600 19,950
------------ ------------
TOTAL ENGINEERING &
CONSTRUCTION
- VALUE $ 51,739 $ 165,138
- COST $ 35,965 $ 140,215
ENTERTAINMENT & LEISURE
PERCENT OF NET ASSETS 0.31% 0.72%
AMF Bowling Inc 0 $ -- 0 $ --
Ascent Entertainment Group+ 249 2,677 293 3,150
Bally Total Fitness Holding
Corp+ 26 712 76 2,081
Boyd Gaming Corp+ 0 -- 200 1,588
Brunswick Corp 196 6,223 835 26,511
Callaway Golf Co 296 9,546 680 21,930
Circus Circus Entertainment
Inc+ 629 13,838 930 20,460
Coleman Co Inc+ 0 -- 200 4,125
Disney (Walt) Co 1,123 125,706 5,572 623,716
Galileo International Inc 0 -- 400 15,800
Gaylord Entertainment Co
Class A 105 3,570 105 3,570
Grand Casinos Inc+ 400 6,100 400 6,100
Harrah's Entertainment Inc+ 108 2,275 897 18,893
Hasbro Inc 198 7,190 1,105 40,125
International Game
Technology Inc 497 12,052 1,100 26,675
Mattel Inc 371 15,698 2,414 102,142
Metro-Goldwyn-Mayer Inc+ 0 -- 100 1,956
MGM Grand Inc+ 200 7,225 200 7,225
Mirage Resorts Inc+ 1,597 36,531 1,576 36,051
Polaroid Corp 34 1,558 437 20,020
</TABLE>
68
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
6,392 $ 208,939 5,504 $ 179,912 9,184 $ 300,202
1,352 53,827 1,022 40,688 2,195 87,388
------------ ------------ ------------
$ 17,040,358 $ 14,819,522 $ 26,789,391
$ 12,562,522 $ 11,058,036 $ 21,871,886
0.11% 0.13% 0.14%
838 $ 65,783 789 $ 61,937 1,203 $ 94,435
545 39,819 552 40,331 856 62,542
1,945 38,657 1,620 32,198 3,408 67,724
713 33,422 570 26,719 1,065 49,922
1,739 81,842 1,386 65,229 2,428 114,268
732 19,581 583 15,595 1,254 33,545
270 7,155 0 -- 0 --
734 18,992 647 16,741 1,189 30,765
393 17,882 321 14,606 633 28,802
1,300 43,225 1,100 36,575 2,400 79,800
------------ ------------ ------------
$ 366,358 $ 309,931 $ 561,803
$ 311,243 $ 254,185 $ 509,168
1.05% 1.27% 1.30%
0 $ -- 0 $ -- 500 $ 12,000
400 4,300 397 4,268 679 7,299
185 5,064 116 3,175 223 6,105
0 -- 300 2,381 700 5,556
1,962 62,293 1,660 52,705 2,840 90,170
1,458 47,021 1,256 40,506 2,616 84,366
2,122 46,684 1,562 34,364 3,295 72,490
0 -- 0 -- 200 4,125
13,466 1,507,350 11,568 1,294,893 19,461 2,178,416
800 31,600 600 23,700 1,400 55,300
140 4,760 171 5,814 250 8,500
700 10,675 500 7,625 900 13,725
2,032 42,799 1,602 33,742 2,818 59,354
2,523 91,616 2,112 76,692 3,561 129,309
2,172 52,671 2,017 48,912 4,345 105,366
5,313 224,806 4,565 193,157 11,363 480,797
0 -- 200 3,913 400 7,825
400 14,450 400 14,450 800 28,900
3,580 81,893 3,029 69,288 5,074 116,068
906 41,506 747 34,222 1,402 64,229
</TABLE>
69
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Spelling Entertainment Group 0 $ -- 0 $ --
Stanhome Inc 220 6,353 170 4,909
Tiffany & Co 126 5,922 300 14,100
Time Warner Inc 987 66,623 4,698 317,115
Topp Inc+ 512 1,408 0 --
U.S. West Media Group+ 1,020 32,831 5,340 171,881
------------ ------------
TOTAL ENTERTAINMENT
& LEISURE
- VALUE $ 364,038 $ 1,490,123
- COST $ 290,782 $ 1,020,657
ENVIRONMENTAL CONTROL
PERCENT OF NET ASSETS 0.08% 0.12%
Browning-Ferris Industries
Inc 347 $ 11,559 1,723 $ 57,397
Mid American Waste Systems
Inc+ 0 -- 0 --
Republic Industries Inc+ 1,500 35,438 3,200 75,600
Safety-Kleen Corp 78 2,091 491 13,165
U.S. Filter Corp+ 0 -- 800 27,150
U.S.A. Waste Services Inc+ 800 33,300 1,730 72,011
Wheelabrator Technologies
Inc 700 11,419 700 11,419
------------ ------------
TOTAL ENVIRONMENTAL
CONTROL
- VALUE $ 93,807 $ 256,742
- COST $ 82,856 $ 237,452
FOOD & RELATED
PERCENT OF NET ASSETS 1.04% 2.05%
Albertson's Inc 405 $ 18,959 2,180 $ 102,051
American Stores Co 461 11,611 2,387 60,123
Archer-Daniels-Midland Co 1,000 22,438 5,009 112,389
Bestfoods 243 25,606 1,182 124,553
Bob Evans Farms Inc 468 9,623 360 7,403
Boston Chicken Inc+ 600 4,163 500 3,469
Brinker International Inc+ 1,056 22,044 990 20,666
Brown-Forman Corp Class B 74 4,107 643 35,687
Campbell Soup Co 800 46,450 3,629 210,709
ConAgra Inc 888 26,640 3,727 111,810
Corn Product International
Inc+ 60 1,995 295 9,809
Cracker Barrel Old Country
Store Inc 249 10,069 610 24,667
Darden Restaurants Inc 160 2,160 1,329 17,941
Dave & Buster's Inc 0 -- 0 --
Dean Foods Co 224 12,320 440 24,200
Dole Food Inc 246 13,361 410 22,268
Earthgrains Co 28 1,213 146 6,324
Fleming Co Inc 2 36 291 5,183
</TABLE>
70
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0 $ -- 0 $ -- 400 $ 3,600
299 8,634 214 6,179 210 6,064
480 22,560 560 26,320 1,200 56,400
11,119 750,533 9,587 647,123 16,146 1,089,855
722 1,986 527 1,449 0 --
12,084 388,954 10,397 334,653 17,485 562,798
------------ ------------ ------------
$ 3,442,155 $ 2,959,531 $ 5,248,617
$ 2,322,449 $ 1,942,826 $ 3,597,026
0.16% 0.19% 0.24%
3,988 $ 132,850 3,351 $ 111,630 5,669 $ 188,849
372 163 0 -- 0 --
6,500 153,563 5,200 122,850 12,700 300,038
1,136 30,459 1,016 27,242 1,831 49,094
1,600 54,300 1,300 44,119 3,400 115,388
3,300 137,363 2,800 116,550 6,767 281,676
1,300 21,206 1,200 19,575 2,600 42,413
------------ ------------ ------------
$ 529,904 $ 441,966 $ 977,458
$ 517,459 $ 441,314 $ 942,877
2.94% 3.58% 4.31%
4,930 $ 230,786 4,238 $ 198,391 7,084 $ 331,620
5,544 139,640 4,645 116,996 7,830 197,218
11,107 249,213 9,536 213,964 16,107 361,401
2,585 272,394 2,283 240,571 5,572 587,149
752 15,463 472 9,706 1,250 25,703
700 4,856 700 4,856 1,100 7,631
1,871 39,057 1,171 24,445 2,130 44,464
1,355 75,203 1,145 63,548 1,995 110,723
8,322 483,196 7,171 416,366 17,729 1,029,390
8,572 257,160 7,453 223,590 18,371 551,130
696 23,142 545 18,121 1,318 43,824
1,411 57,057 1,071 43,309 2,325 94,017
3,179 42,917 2,566 34,641 4,753 64,166
103 2,524 0 -- 0 --
707 38,885 737 40,535 1,605 88,275
1,008 54,747 868 47,143 1,825 99,120
334 14,466 268 11,608 612 26,507
801 14,268 589 10,492 1,206 21,482
</TABLE>
71
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Flowers Industries Inc 509 $ 12,948 720 $ 18,315
Food Lion Inc Class A 1,100 11,103 1,700 17,159
Food Lion Inc Class B 1,400 13,825 1,800 17,775
General Mills Inc 210 15,107 1,232 88,627
General Nutrition Co Inc+ 400 15,900 800 31,800
Giant Food Inc Class A 156 5,665 494 17,938
Great Atlantic & Pacific Tea
Co 69 2,100 293 8,918
Hannaford Brothers Co 236 9,956 260 10,969
Harcourt General Inc 89 4,806 582 31,428
Heinz (H J) Co 690 38,856 2,938 165,446
Hershey Foods Corp 214 14,271 1,155 77,024
Hormel Foods Corp 200 7,425 500 18,563
Host Marriott Services Corp+ 240 3,210 240 3,210
IBP Inc 432 9,639 920 20,527
Imperial Holly Inc 0 -- 0 --
International Multifoods
Corp 0 -- 0 --
Interstate Bakeries Corp 0 -- 400 13,400
Kellogg Co 756 32,225 3,259 138,915
Koninklijke Ahold NV ADR
(Netherlands) 3,015 92,900 10,138 312,377
Kroger Co 341 14,407 2,101 88,767
Lancaster Colony Corp 207 9,108 290 12,760
Lance Inc 0 -- 0 --
Lone Star Steakhouse &
Saloon+ 300 6,319 400 8,425
Luby's Cafeteria Inc 45 782 219 3,805
McCormick & Co Inc 288 8,262 600 17,213
McDonald's Corp 1,269 69,478 5,690 311,527
Michael Foods Inc 0 -- 0 --
Morrison Restaurants Inc 96 270 50 141
Nabisco Holdings Corp Class
A 200 9,438 100 4,719
NPC International Inc+ 0 -- 0 --
Outback Steakhouse Inc+ 200 7,150 400 14,300
Pioneer Hi Bred
International Inc 135 14,006 479 49,696
Planet Hollywood
International+ 0 -- 200 2,013
Quaker Oats Co 142 7,650 1,173 63,195
Ralston-Purina Group 155 15,723 896 90,888
Richfood Holdings Inc 0 -- 500 14,219
RJR Nabisco Holdings Corp 1,170 40,438 2,643 91,349
Ruby Tuesday Inc 192 5,016 100 2,613
Ryans Family Steak House+ 119 985 516 4,273
Safeway Inc 998 34,805 2,054 71,633
Sara Lee Corp 833 47,065 3,853 217,694
Sbarro Inc 0 -- 0 --
Shoney's Inc+ 97 473 370 1,804
Sizzler International Inc+ 254 841 0 --
</TABLE>
72
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,318 $ 33,527 1,336 $ 33,985 2,815 $ 71,607
3,100 31,290 2,900 29,272 6,900 68,137
4,300 42,463 3,400 33,575 6,400 64,600
2,930 210,777 2,597 186,822 6,222 447,595
1,600 63,600 1,500 59,625 3,200 127,200
1,186 43,067 946 34,352 1,700 61,731
732 22,280 612 18,628 1,177 35,825
745 31,430 565 23,836 1,240 52,313
1,419 76,626 1,211 65,394 2,053 110,862
6,720 378,420 5,902 332,356 14,266 803,354
2,653 176,922 2,319 154,648 5,598 373,317
1,000 37,125 800 29,700 1,700 63,113
380 5,082 320 4,280 680 9,095
2,152 48,017 1,642 36,637 3,500 78,094
134 1,173 94 823 0 --
274 7,655 0 -- 0 --
800 26,800 700 23,450 1,600 53,600
7,501 319,730 6,470 275,784 16,003 682,128
22,905 705,760 20,762 639,729 38,157 1,175,713
4,630 195,618 4,069 171,915 9,729 411,050
705 31,020 660 29,040 1,292 56,848
478 11,114 0 -- 0 --
700 14,744 500 10,531 900 18,956
480 8,340 369 6,411 621 10,790
1,355 38,872 1,005 28,831 2,155 61,822
13,681 749,035 11,787 645,338 19,844 1,086,459
229 5,811 0 -- 0 --
160 450 99 278 193 543
200 9,438 200 9,438 400 18,875
374 4,301 284 3,266 0 --
500 17,875 700 25,025 1,400 50,050
1,235 128,131 1,033 107,174 2,756 285,935
500 5,031 400 4,025 600 6,038
2,605 140,344 2,195 118,256 5,309 286,022
1,957 198,513 1,625 164,836 4,138 419,748
0 -- 600 17,063 1,000 28,438
5,305 183,354 4,851 167,663 10,618 366,985
321 8,386 199 5,199 387 10,110
1,012 8,381 679 5,623 1,039 8,604
3,976 138,663 3,378 117,808 8,452 294,764
8,737 493,640 7,573 427,874 18,602 1,051,013
319 9,411 219 6,461 0 --
751 3,661 596 2,905 1,304 6,357
434 1,438 319 1,057 0 --
</TABLE>
73
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Smucker (J M) Co Class A 305 $ 8,121 0 $ --
Southland Corp+ 1,800 3,488 1,400 2,713
Starbucks Corp+ 400 15,825 800 31,650
Super Value Inc 78 3,715 543 25,860
Sysco Corp 205 9,648 1,387 65,276
Tootsie Roll Industries 212 15,821 212 15,834
Tricon Global Restaurants+ 226 6,413 1,275 36,178
Tyson Food Inc Class A 591 11,525 890 17,355
Unilever NV (Netherlands) 3,972 255,449 13,212 849,697
Universal Corp 181 8,598 400 19,000
Universal Foods Corp 279 12,555 320 14,400
UST Inc 292 10,348 1,528 54,149
Weis Markets Inc 200 7,038 100 3,519
Wendy's International Inc 211 4,576 1,170 25,374
Winn-Dixie Stores Inc 166 8,954 1,209 65,210
Wrigley (W M) Jr Co 184 14,053 979 74,771
------------ ------------
TOTAL FOOD & RELATED
- VALUE $ 1,211,074 $ 4,263,663
- COST $ 888,160 $ 2,966,990
FURNITURE & APPLIANCES
PERCENT OF NET ASSETS 0.07% 0.10%
Bassett Furniture Industries 25 $ 775 50 $ 1,550
HON Industries Inc 153 10,060 270 17,753
Hussmann International Inc+ 32 486 439 6,660
Knoll Inc+ 0 -- 100 3,563
Leggett & Platt Inc 458 22,986 900 45,169
Maytag Corp 216 9,720 879 39,555
Miller (Herman) Inc 238 14,578 420 25,725
National Presto Industries
Inc 0 -- 0 --
Skyline Corp 20 639 44 1,405
Sunbeam Oster Co Inc 300 12,413 600 24,825
Whirlpool Corp 83 5,545 705 47,103
------------ ------------
TOTAL FURNITURE & APPLIANCES
- VALUE $ 77,202 $ 213,308
- COST $ 34,333 $ 129,645
HEALTHCARE
PERCENT OF NET ASSETS 0.11% 0.18%
Apria Healthcare Group Inc+ 500 $ 6,813 600 $ 8,175
Beverly Enterprises Inc+ 75 1,139 1,146 17,405
Cardinal Health Inc 116 9,498 889 72,787
First Health Group Corp+ 284 14,147 290 14,446
Healthsouth Corp 1,010 27,270 3,190 86,130
Idexx Laboratories Inc+ 400 6,275 500 7,844
</TABLE>
74
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
436 $ 11,608 331 $ 8,813 0 $ --
2,600 5,038 1,800 3,488 4,200 8,138
1,700 67,256 1,400 55,388 3,400 134,513
1,194 56,864 1,044 49,721 1,718 81,820
3,085 145,188 2,699 127,022 6,737 317,060
318 23,751 212 15,834 537 40,046
3,075 87,253 2,587 73,406 4,267 121,076
1,411 27,515 1,473 28,724 3,545 69,128
29,720 1,911,368 26,964 1,734,122 49,692 3,195,817
639 30,353 694 32,965 1,365 64,838
409 18,405 489 22,005 770 34,650
3,453 122,366 3,035 107,553 7,026 248,984
200 7,038 200 7,038 400 14,075
2,634 57,125 2,263 49,079 3,751 81,350
2,958 159,547 2,505 135,113 4,266 230,097
2,164 165,276 1,864 142,363 4,489 342,847
------------ ------------ ------------
$ 9,578,240 $ 8,369,829 $ 17,425,950
$ 6,662,975 $ 5,861,569 $ 13,242,622
0.14% 0.17% 0.19%
200 $ 6,200 120 $ 3,720 206 $ 6,386
484 31,823 454 29,850 935 61,476
1,026 15,575 796 12,089 1,533 23,275
0 -- 200 7,125 400 14,250
1,874 94,051 1,584 79,497 3,430 172,143
1,899 85,455 1,639 73,755 2,664 119,880
848 51,940 858 52,553 1,820 111,475
116 4,517 81 3,154 0 --
222 7,090 78 2,491 133 4,248
1,300 53,788 1,100 45,513 2,300 95,162
1,460 97,546 1,298 86,723 2,149 143,580
------------ ------------ ------------
$ 447,985 $ 396,470 $ 751,875
$ 261,638 $ 240,464 $ 519,431
0.28% 0.32% 0.38%
800 $ 10,900 800 $ 10,900 1,300 $ 17,712
2,100 31,894 2,042 31,013 4,300 65,306
2,040 167,025 1,675 137,141 4,163 340,846
816 40,647 596 29,688 1,265 63,013
7,277 196,479 6,119 165,213 15,005 405,135
800 12,550 600 9,413 1,000 15,688
</TABLE>
75
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Lincare Holdings Inc+ 0 $ -- 100 $ 6,491
Mid Atlantic Medical
Services+ 400 4,700 500 5,875
Morrison Health Care Inc 128 2,560 66 1,320
Novacare Inc+ 0 -- 0 --
Oakley Inc+ 600 7,238 600 7,238
Oxford Health Plans Inc+ 500 8,594 700 12,031
PacifiCare Health Systems
Inc Class A+ 112 6,855 70 4,285
PacifiCare Health Systems
Inc Class B+ 174 10,875 195 12,188
St Jude Medical Inc 152 5,548 796 29,054
United Healthcare Corp 297 18,024 1,639 99,467
------------ ------------
TOTAL HEALTHCARE
- VALUE $ 129,536 $ 384,736
- COST $ 145,300 $ 368,304
HOSPITAL & MEDICAL SUPPLIES
PERCENT OF NET ASSETS 0.42% 0.98%
Allegiance Corp 81 $ 2,825 628 $ 21,902
American Oncology Resources+ 0 -- 200 3,050
Arrow International Inc 0 -- 100 3,913
Arterial Vascular
Engineering+ 0 -- 100 4,094
Bard (C R) Inc 143 4,987 555 19,356
Bausch & Lomb Inc 56 2,509 491 22,003
Baxter International Inc 470 26,614 2,297 130,068
Becton Dickinson & Co 159 10,116 987 62,798
Biomet Inc 132 3,935 926 27,606
Boston Scientific Corp+ 301 17,985 1,568 93,688
Columbia/HCA Healthcare Corp 1,140 30,923 5,759 156,213
Dentsply International Inc 400 12,400 400 12,400
Depuy Inc 0 -- 200 5,388
Guidant Corp 306 22,319 1,209 88,181
Health Care & Retirement
Corp+ 150 6,581 400 17,550
Health Management Associates
Inc Class A 575 15,992 1,375 38,242
Hillenbrand Industries Inc 300 16,856 500 28,094
Johnson & Johnson 2,333 176,142 10,695 807,473
Mallinckrodt Group Inc 87 3,377 684 26,548
Manor Care Inc 161 6,048 601 22,575
Medpartners Inc+ 710 8,520 1,489 17,868
Medtronic Inc 720 38,250 3,714 197,306
Phycor Inc+ 300 7,716 600 15,431
Quorum Health Group Inc 150 4,158 350 9,702
Stryker Corp 348 14,246 720 29,475
Sybron International Corp 600 16,388 900 24,581
Tenet Healthcare Corp+ 524 19,552 2,682 100,072
Thermo Cardiosystems Inc+ 150 3,750 250 6,250
</TABLE>
76
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
300 $ 19,472 300 $ 19,472 600 $ 38,944
700 8,225 500 5,875 1,300 15,275
214 4,280 132 2,640 258 5,160
975 13,650 710 9,940 0 --
1,200 14,475 800 9,650 1,200 14,475
1,400 24,063 1,300 22,344 2,600 44,688
459 28,021 136 8,273 242 14,768
526 32,887 411 25,688 795 49,699
1,835 66,977 1,534 55,991 2,735 99,827
3,729 226,304 3,247 197,052 5,462 331,475
------------ ------------ ------------
$ 897,849 $ 740,293 $ 1,522,011
$ 769,806 $ 640,982 $ 1,349,970
1.39% 1.68% 2.20%
1,230 $ 42,896 1,098 $ 38,293 2,307 $ 80,457
0 -- 200 3,050 400 6,100
0 -- 0 -- 200 7,825
0 -- 0 -- 0 --
1,208 42,129 897 31,283 1,796 62,636
1,150 51,534 975 43,692 1,555 69,683
5,115 289,637 4,426 250,622 10,868 615,401
2,471 157,217 2,130 135,521 3,570 227,141
2,246 66,959 1,742 51,933 4,260 127,001
3,506 209,483 3,067 183,253 7,629 455,833
13,036 353,612 11,167 302,905 18,654 505,990
600 18,600 800 24,800 1,600 49,600
300 8,081 300 8,081 600 16,163
2,717 198,171 2,367 172,643 5,673 413,774
750 32,906 700 30,713 1,550 68,006
3,075 85,523 2,600 72,313 5,587 155,389
1,000 56,188 900 50,569 2,000 112,375
24,511 1,850,580 21,249 1,604,300 52,505 3,964,128
1,443 56,006 1,205 46,769 2,092 81,196
1,299 48,794 1,012 38,013 1,837 69,002
3,020 36,240 2,552 30,624 5,362 64,344
8,514 452,306 7,298 387,706 18,213 967,566
1,050 27,005 1,050 27,005 2,250 57,867
600 16,631 650 18,017 1,400 38,806
1,668 68,284 1,388 56,821 2,900 118,719
1,600 43,700 1,600 43,700 3,600 98,325
6,083 226,972 5,254 196,040 8,820 329,096
300 7,500 300 7,500 450 11,250
</TABLE>
77
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
United States Surgical 152 $ 4,655 699 $ 21,407
Vencor Inc+ 500 14,344 700 20,081
------------ ------------
TOTAL HOSPITAL & MEDICAL
SUPPLIES
- VALUE $ 491,188 $ 2,033,315
- COST $ 384,539 $ 1,447,346
HOUSEHOLD PRODUCTS
PERCENT OF NET ASSETS 0.37% 0.93%
Alberto-Culver Co Class B 102 $ 3,105 485 $ 14,762
Avon Products Inc 160 11,270 1,087 76,566
Colgate-Palmolive Co 479 38,889 2,358 191,440
Estee Lauder Co Class A 200 11,700 200 11,700
Gillette Co 1,021 110,140 4,471 482,309
Kimberly-Clark Corp 986 54,908 4,354 242,463
NCH Corp 0 -- 0 --
Procter & Gamble Co 2,403 204,105 10,684 907,472
------------ ------------
TOTAL HOUSEHOLD PRODUCTS
- VALUE $ 434,117 $ 1,926,712
- COST $ 307,975 $ 1,126,833
INSURANCE
PERCENT OF NET ASSETS 1.15% 2.56%
Aegon NV ADR (Netherlands) 22 $ 2,475 325 $ 36,563
Aetna Inc 274 23,941 1,300 113,588
AFLAC Corp 696 42,761 1,370 84,169
Alleghany Corp 2 696 2 682
Allmerica Financial Corp 124 7,626 230 14,145
Allstate Corp 722 67,327 3,601 335,793
AMBAC Inc 300 15,975 600 31,950
American Bankers Insurance
Gro 0 -- 400 22,500
American Financial Group Inc 304 12,293 390 15,771
American General Corp 694 40,311 2,416 140,402
American International Group
Inc 1,293 155,402 5,648 678,819
American National Insurance
Co 100 9,700 100 9,700
Aon Corp 267 15,970 1,510 90,317
Argonaut Group Inc 0 -- 100 3,600
Axa-UAP ADR (France) 2,275 110,053 7,408 358,362
Chubb Corp 315 25,141 1,524 121,634
CIGNA Corp 79 15,089 651 124,341
Cincinnati Financial Corp 230 31,050 546 73,710
CNA Financial Corp+ 0 -- 100 14,394
Conseco Inc 358 16,804 1,704 79,982
Equitable Co Inc 400 20,925 800 41,850
Everest Reinsurance Holdings
Inc 300 11,063 400 14,750
</TABLE>
78
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,465 $ 44,866 1,276 $ 39,078 2,342 $ 71,724
1,500 43,031 1,180 33,851 2,474 70,973
------------ ------------ ------------
$ 4,534,851 $ 3,929,095 $ 8,916,370
$ 3,112,631 $ 2,695,367 $ 6,611,260
1.35% 1.63% 2.32%
1,110 $ 33,786 882 $ 26,846 1,769 $ 53,844
2,443 172,079 2,120 149,327 5,022 353,737
5,419 439,955 4,646 377,197 11,523 935,524
400 23,400 400 23,400 800 46,800
10,224 1,102,914 8,804 949,732 21,861 2,358,255
10,013 557,599 8,677 483,201 21,241 1,182,858
124 7,556 89 5,423 0 --
24,458 2,077,401 21,227 1,802,968 52,416 4,452,084
------------ ------------ ------------
$ 4,414,690 $ 3,818,094 $ 9,383,102
$ 2,625,441 $ 2,304,576 $ 6,133,380
3.57% 4.42% 4.71%
747 $ 84,038 580 $ 65,250 898 $ 101,025
2,968 259,329 2,516 219,836 4,254 371,693
2,817 173,069 2,537 155,867 5,627 345,709
104 35,478 104 35,478 204 69,578
379 23,309 372 22,878 803 49,385
8,573 799,432 7,333 683,802 12,357 1,152,290
1,300 69,225 1,100 58,575 2,400 127,800
700 39,375 600 33,750 1,300 73,125
813 32,876 608 24,586 1,380 55,804
5,158 299,796 4,588 266,672 7,751 450,516
12,783 1,536,357 11,049 1,327,952 27,363 3,288,691
200 19,400 200 19,400 400 38,800
3,319 198,518 2,854 170,705 4,834 289,134
0 -- 200 7,200 300 10,800
16,697 807,717 15,104 730,656 27,832 1,346,373
3,368 268,809 2,935 234,250 4,867 388,447
1,432 273,512 1,272 242,952 2,160 412,560
1,045 141,075 1,040 140,400 1,595 215,325
200 28,788 200 28,788 400 57,575
3,773 177,095 3,254 152,735 5,441 255,387
1,700 88,931 1,400 73,238 3,100 162,169
900 33,188 800 29,500 1,700 62,688
</TABLE>
79
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Foundation Health Systems+ 491 $ 13,595 926 $ 25,639
General Re Corp 101 21,513 651 138,663
Hartford Financial Services
Group 236 23,187 1,081 106,208
Highlands Insurance Group+ 37 909 76 1,867
HSB Group Inc 230 14,519 280 17,675
Humana Inc+ 257 6,537 1,470 37,393
Jefferson-Pilot Corp 107 8,975 639 53,596
John Alden Financial Corp 0 -- 0 --
Leucadia National Corp 200 7,550 400 15,100
Lincoln National Corp 144 12,060 936 78,390
Loews Corp 155 15,548 983 98,607
Marsh & McLennan Co Inc 267 23,146 1,318 114,254
MBIA Inc 204 14,930 764 55,915
Mercury General Corp 200 11,350 300 17,025
Ohio Casualty Corp 100 4,675 300 14,025
Old Republic International
Corp 350 14,766 750 31,641
PMI Group Inc 100 7,275 200 14,550
Progressive Corp Ohio 85 9,849 650 75,319
Protective Life Corp 100 6,913 300 20,738
Provident Co Inc 294 10,584 632 22,752
Providian Financial Corp 156 8,847 788 44,719
Reliance Group Holdings 0 -- 700 11,900
Reliastar Financial Corp 400 19,025 900 42,806
Safeco Corp 276 14,473 1,208 63,345
St Paul Co 127 11,255 755 66,912
Sunamerica Inc 909 41,189 1,633 73,995
TIG Holdings Inc 200 5,313 500 13,281
Tokio Marine & Fire
Insurance Co ADR (Japan) 3,718 211,926 15,400 877,800
Torchmark Corp 262 12,199 1,197 55,735
Transamerica Corp 76 8,849 542 63,109
Transatlantic Holdings Inc 126 9,529 150 11,344
Travelers Inc 1,873 104,420 9,565 533,249
Travelers Property Casualty 100 4,100 100 4,100
Uici+ 0 -- 400 12,850
Unitrin Inc 100 6,913 300 20,738
UNUM Corp 272 13,991 1,256 64,606
USF & G Corp 179 4,374 1,002 24,486
Wellpoint Health Networks+ 0 -- 100 5,844
------------ ------------
TOTAL INSURANCE
- VALUE $ 1,328,886 $ 5,337,198
- COST $ 961,881 $ 3,651,478
</TABLE>
80
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
1,954 $ 54,101 1,713 $ 47,429 3,541 $ 98,041
1,613 343,569 1,329 283,077 2,274 484,362
2,315 227,449 2,043 200,725 3,450 338,962
172 4,225 136 3,340 216 5,306
309 19,506 424 26,765 820 51,763
3,272 83,232 2,822 71,785 4,615 117,394
1,417 118,851 1,168 97,966 2,013 168,840
0 -- 0 -- 300 6,731
900 33,975 700 26,425 1,600 60,400
2,079 174,116 1,770 148,238 2,951 247,146
2,282 228,913 2,012 201,829 3,313 332,335
3,110 269,598 2,689 233,103 6,617 573,611
1,767 129,322 1,510 110,513 2,805 205,291
400 22,700 500 28,375 1,100 62,425
700 32,725 500 23,375 1,100 51,425
1,500 63,281 1,250 52,734 3,100 130,781
500 36,375 400 29,100 900 65,475
1,469 170,220 1,348 156,200 2,061 238,818
600 41,475 500 34,563 1,100 76,038
1,312 47,232 1,202 43,272 2,566 92,376
1,902 107,938 1,696 96,248 2,697 153,055
1,400 23,800 1,200 20,400 2,400 40,800
1,900 90,369 1,600 76,100 3,600 171,225
2,807 147,192 2,498 130,989 4,023 210,956
1,627 144,193 1,456 129,038 2,409 213,498
3,897 176,583 3,290 149,078 5,599 253,705
900 23,906 800 21,250 1,700 45,156
26,976 1,537,632 27,469 1,565,733 44,208 2,519,856
2,806 130,654 2,418 112,588 4,044 188,299
1,299 151,252 1,044 121,561 1,787 208,074
332 25,108 290 21,931 660 49,913
22,913 1,277,400 19,704 1,098,506 33,141 1,847,611
200 8,200 200 8,200 300 12,300
800 25,700 600 19,275 1,400 44,975
600 41,475 500 34,563 1,100 76,038
2,774 142,688 2,391 122,987 3,959 203,641
2,206 53,909 1,858 45,405 3,192 78,005
300 17,531 200 11,688 500 29,219
------------ ----------- ------------ ----------- ------------
$ 11,615,712 $ 10,328,824 $ 19,078,720
$ 7,606,427 $ 6,858,868 $ 14,010,932
</TABLE>
81
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
LODGING
PERCENT OF NET ASSETS 0.06% 0.12%
Choice Hotels International
Inc+ 59 $ 885 505 $ 7,575
Extended Stay America Inc+ 0 -- 600 8,400
Hilton Hotels Corp 304 9,063 2,111 62,934
Homestead Village Property
Inc 75 1,064 87 1,234
Host Marriott Corp+ 800 15,850 1,700 33,681
La Quinta Inns Inc 400 8,500 650 13,813
Marriott International 178 13,484 1,006 76,205
Primadonna Resorts Inc 0 -- 0 --
Promus Hotel Corp+ 441 21,278 818 39,469
Sunburst Hospitality Corp 20 172 168 1,470
------------ ------------
TOTAL LODGING
- VALUE $ 70,296 $ 244,781
- COST $ 48,954 $ 179,753
MACHINERY
PERCENT OF NET ASSETS 0.28% 0.44%
AGCO Corp 300 $ 8,438 600 $ 16,875
AVX Corp 300 6,769 200 4,513
Black & Decker Corp 126 6,347 861 43,373
Camco International Inc 0 -- 300 17,550
Case Corp 103 6,701 704 45,804
Caterpillar Inc 630 34,414 3,259 178,023
Cincinnati Milacron Inc 61 1,883 362 11,177
Cummins Engine Co Inc 25 1,447 298 17,247
Deere & Co 439 24,639 2,249 126,225
Federal Mogul Corp 396 19,429 300 14,719
Flowserve Corp 0 -- 400 12,675
Harsco Corp 338 14,154 520 21,775
Ingersoll-Rand Co 272 12,954 1,450 69,056
Jacobs Engineering Group+ 0 -- 0 --
Kubota Corp ADR (Japan) 1,434 83,531 1,203 70,075
MagneTek Inc+ 0 -- 0 --
Makita Corp ADR (Japan) 1,420 16,330 4,803 55,235
McDermott International Inc 146 5,749 456 17,955
Nordson Corp 214 10,406 160 7,780
Pall Corp 183 3,832 1,087 22,759
Parker Hannifin Corp 158 7,367 987 46,019
Pentair Co 0 -- 0 --
Presstek Inc 200 5,075 400 10,150
SPX Corp 22 1,643 46 3,436
Tecumseh Products Co Class A 241 12,080 190 9,524
Teleflex Inc 350 14,197 0 --
</TABLE>
82
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.17% 0.19% 0.26%
1,105 $ 16,575 807 $ 12,105 1,217 $ 18,255
1,400 19,600 1,200 16,800 2,500 35,000
4,772 142,265 3,893 116,060 9,473 282,414
100 1,419 113 1,603 188 2,667
3,400 67,363 3,100 61,419 6,600 130,763
1,500 31,875 1,100 23,375 2,400 51,000
2,355 178,391 1,978 149,834 4,951 375,038
0 -- 0 -- 400 6,000
1,685 81,301 1,289 62,194 3,245 156,571
368 3,220 269 2,354 405 3,544
------------ ----------- ------------ ----------- ------------
$ 542,009 $ 445,744 $ 1,061,252
$ 369,433 $ 317,385 $ 829,157
0.78% 0.98% 0.93%
1,300 $ 36,563 1,100 $ 30,938 2,300 $ 64,688
400 9,025 400 9,025 900 20,306
1,857 93,546 1,659 83,572 2,734 137,725
600 35,100 600 35,100 1,300 76,050
1,493 97,138 1,311 85,297 2,208 143,658
7,410 404,771 6,408 350,037 10,759 587,710
802 24,762 767 23,681 1,215 37,513
746 43,175 624 36,114 1,156 66,904
5,040 282,870 4,282 240,327 7,305 409,993
553 27,132 398 19,527 380 18,644
900 28,519 800 25,350 1,600 50,700
1,148 48,073 858 35,929 1,920 80,400
3,307 157,496 2,962 141,065 4,717 224,647
373 11,167 0 -- 0 --
10,786 628,285 10,935 636,964 16,660 970,445
367 6,514 0 -- 0 --
10,209 117,404 10,347 118,990 16,783 193,005
1,093 43,037 947 37,288 1,593 62,724
293 14,247 208 10,114 385 18,721
2,550 53,391 2,123 44,450 3,843 80,463
2,208 102,948 1,938 90,359 3,209 149,620
576 23,724 406 16,722 0 --
400 10,150 400 10,150 600 15,225
226 16,879 83 6,199 248 18,523
345 17,293 249 12,481 431 21,604
508 20,606 388 15,738 0 --
</TABLE>
83
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Thermo Electron Corp+ 239 $ 9,799 1,336 $ 54,776
UCAR International Inc+ 200 6,888 400 13,775
York International Corp 202 8,875 420 18,454
Zurn Industries Inc 22 965 46 2,018
------------ ------------
TOTAL MACHINERY
- VALUE $ 323,912 $ 910,968
- COST $ 310,131 $ 792,704
MANUFACTURING
PERCENT OF NET ASSETS 0.05% 0.11%
EVI Inc 0 $ -- 300 $ 14,719
Tyco International Ltd 1,224 62,118 4,220 214,165
West Teleservices 0 -- 0 --
------------ ------------
TOTAL MANUFACTURING
- VALUE $ 62,118 $ 228,884
- COST $ 39,512 $ 174,375
METAL FABRICATORS
PERCENT OF NET ASSETS 0.22% 0.50%
Alcan Aluminum Ltd 427 $ 13,264 1,995 $ 61,970
Allegheny Teledyne Inc 263 7,134 1,438 39,006
Alumax Inc+ 189 7,005 480 17,790
Aluminum Co of America 317 23,260 1,525 111,897
Armco Inc+ 111 590 953 5,063
Barrick Gold Corp 623 12,032 3,338 64,465
Battle Mountain Gold Co 337 2,022 1,957 11,742
Bethlehem Steel Corp+ 67 712 938 9,966
British Steel PLC ADR (UK) 678 16,738 2,172 53,621
Crane Co 80 3,920 395 19,355
Engelhard Corp 270 4,894 1,271 23,037
Freeport McMoRan Copper &
Gold Inc Class B 38 546 28 403
Freeport McMoRan Inc 231 3,479 1,682 25,335
Getchell Gold Corp+ 24 447 259 4,824
Inland Steel Industries Inc 102 2,104 432 8,910
Kaydon Corp 0 -- 0 --
Laboratory Corp of America
Holdings 660 1,279 418 810
Lukens Inc 0 -- 0 --
Mitsui & Co Ltd ADR (Japan) 660 83,408 2,015 254,646
Nucor Corp 131 6,747 734 37,801
Oregon Steel Mills Inc 0 -- 0 --
Phelps Dodge Corp 76 4,826 540 34,290
Placer Dome Inc 353 4,545 2,124 27,347
Precision Castparts Corp 0 -- 200 11,088
Reynolds Metals Co 159 9,908 606 37,761
</TABLE>
84
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
3,066 $ 125,706 2,546 $ 104,386 4,371 $ 179,211
800 27,550 600 20,663 1,400 48,213
959 42,136 814 35,765 1,685 74,035
224 9,828 180 7,898 241 10,574
------------ ------------ ------------
$ 2,559,035 $ 2,284,129 $ 3,761,301
$ 2,336,391 $ 2,140,563 $ 3,802,021
0.16% 0.20% 0.28%
600 $ 29,438 600 $ 29,438 1,300 $ 63,781
9,749 494,762 8,442 428,432 20,724 1,051,743
0 -- 0 -- 200 2,900
------------ ------------ ------------
$ 524,200 $ 457,870 $ 1,118,424
$ 409,829 $ 363,876 $ 861,600
0.73% 0.90% 0.90%
4,535 $ 140,868 3,904 $ 121,268 6,607 $ 205,230
3,498 94,883 2,898 78,608 4,998 135,571
773 28,649 793 29,391 1,770 65,601
3,427 251,456 2,938 215,576 4,971 364,747
1,943 10,322 1,647 8,750 3,846 20,432
7,557 145,945 6,282 121,321 10,574 204,210
4,566 27,396 3,560 21,360 7,316 43,896
2,310 24,544 1,752 18,615 3,489 37,071
4,862 120,031 4,465 110,230 8,166 201,598
915 44,835 862 42,214 1,398 68,502
2,901 52,581 2,322 42,086 4,126 74,784
52 747 38 546 236 3,393
3,743 56,379 3,247 48,908 7,341 110,574
222 4,135 458 8,530 646 12,032
996 20,543 751 15,489 1,488 30,690
500 18,594 0 -- 0 --
1,043 2,021 684 1,325 1,337 2,590
230 6,900 0 -- 0 --
4,622 584,105 4,684 591,941 7,495 947,181
1,781 91,721 1,460 75,190 2,537 130,656
299 6,017 199 4,005 0 --
1,195 75,883 1,038 65,913 1,712 108,712
4,869 62,688 4,118 53,019 6,778 87,267
400 22,175 413 22,896 800 44,350
1,504 93,718 1,306 81,380 2,154 134,221
</TABLE>
85
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
SKF AB ADR (Sweden) 781 $ 15,815 2,531 $ 51,253
Steel Dynamics Inc+ 0 -- 300 5,700
Timken Co 102 3,290 600 19,350
USX--U.S. Steel Group 136 4,777 790 27,749
WMC Ltd ADR (Japan) 1,140 15,390 3,837 51,800
Worthington Industries Inc 137 2,346 897 15,361
------------ ------------
TOTAL METAL FABRICATORS
- VALUE $ 250,478 $ 1,032,340
- COST $ 294,925 $ 1,229,500
OFFICE EQUIPMENT & SUPPLIES
PERCENT OF NET ASSETS 0.04% 0.05%
Ricoh Co Ltd ADR (Japan) 677 $ 36,173 2,079 $ 111,084
Standard Register Co 301 10,272 0 --
------------ ------------
TOTAL OFFICE EQUIPMENT & SUPPLIES
- VALUE $ 46,445 $ 111,084
- COST $ 53,924 $ 156,965
PHARMACEUTICALS
PERCENT OF NET ASSETS 1.83% 4.00%
Abbott Laboratories 1,344 $ 100,548 6,062 $ 453,513
Allergan Inc 165 5,775 604 21,140
ALZA Corp 122 4,560 699 26,125
American Home Products Corp 1,065 99,844 5,159 483,656
Amgen Inc 377 20,028 2,089 110,978
Astra AB ADR Series B (Sweden) 4,738 93,279 15,704 309,173
Bergen Brunswig Corp Class A 225 10,125 545 24,525
Bristol-Myers Squibb Co 1,784 178,734 7,894 790,880
Centocor Inc+ 346 12,478 640 23,080
Covance Inc+ 90 1,940 581 12,497
Crescendo Pharmaceuticals Corp+ 5 59 33 392
Dura Pharmaceuticals Inc+ 0 -- 500 12,563
Forest Labs Inc Class A+ 182 11,386 370 23,148
Glaxo Holdings PLC ADR (UK) 3,700 200,956 12,392 673,040
ICN Pharmaceuticals Inc 200 11,550 404 23,331
Immunex Corp+ 0 -- 200 11,825
Interneuron Pharmaceuticals Co+ 0 -- 400 3,175
IVAX Corp+ 1,230 10,378 1,240 10,463
Lilly (Eli) & Co 1,999 131,559 8,871 583,823
Marshall & Ilsley Corp 558 32,713 1,040 60,970
McKesson Corp 400 20,850 700 36,488
Merck & Co Inc 2,173 277,193 9,536 1,216,436
Millipore Corp 52 1,966 376 14,218
Mylan Laboratories 603 12,286 1,270 25,876
</TABLE>
86
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
5,817 $ 117,794 5,246 $ 106,232 9,748 $ 197,397
600 11,400 400 7,600 1,000 19,000
1,240 39,990 1,078 34,766 1,784 57,534
1,764 61,961 1,494 52,477 2,492 87,532
8,659 116,897 7,868 106,218 14,498 195,723
1,935 33,137 1,489 25,499 2,792 47,813
------------ ------------ ------------
$ 2,368,315 $ 2,111,353 $ 3,638,307
$ 2,768,087 $ 2,457,218 $ 4,490,841
0.09% 0.12% 0.11%
4,949 $ 264,432 5,025 $ 268,492 8,133 $ 434,557
432 14,742 312 10,647 0 --
------------ ------------ ------------
$ 279,174 $ 279,139 $ 434,557
$ 371,584 $ 367,165 $ 604,542
5.79% 7.10% 9.23%
13,983 $ 1,046,103 12,072 $ 903,137 29,796 $ 2,229,113
1,289 45,115 1,098 38,430 2,008 70,280
1,713 64,023 1,436 53,670 2,386 89,177
11,809 1,107,094 10,240 960,000 25,343 2,375,906
4,915 261,109 4,171 221,584 10,248 544,425
35,550 699,891 32,160 633,150 59,334 1,168,138
1,086 48,870 875 39,375 1,950 87,750
18,157 1,819,104 15,630 1,565,931 38,771 3,884,370
1,381 49,802 1,266 45,655 2,620 94,484
1,030 22,140 878 18,866 1,546 33,239
71 843 53 629 137 1,627
1,000 25,125 800 20,100 1,700 42,713
766 47,923 686 42,918 1,460 91,341
27,901 1,515,373 25,313 1,374,812 46,634 2,532,809
708 40,887 707 40,829 1,640 94,710
400 23,650 300 17,738 700 41,388
0 -- 600 4,763 900 7,144
2,323 19,600 1,963 16,563 3,995 33,708
20,223 1,330,926 17,522 1,153,167 43,315 2,850,669
2,103 123,288 1,883 110,391 4,120 241,535
1,600 83,400 1,400 72,975 2,900 151,163
21,815 2,782,776 18,950 2,428,951 46,796 5,969,415
788 29,796 686 25,939 1,628 61,559
2,765 56,337 2,227 45,375 4,652 94,785
</TABLE>
87
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Novo Nordisk A/S ADR
(Denmark) 2,632 $ 196,249 8,661 $ 645,786
Omnicare Inc 300 11,100 800 29,600
Perrigo Co+ 812 8,729 550 5,913
Pfizer Inc 2,295 203,108 10,309 912,347
Pharmacia and Upjohn Inc 837 33,114 4,470 176,844
Pharmerica Inc+ 35 455 338 4,394
Scherer (R P) Corp+ 200 12,163 200 12,163
Schering-plough Corp 1,283 97,588 5,829 443,368
Schweitzer-Mauduit
International Inc 20 665 92 3,059
Smithkline Beecham PLC ADR
(UK) 2,355 145,716 7,695 476,128
Southtrust Corp 707 28,878 1,395 57,021
Thermolase Corp+ 0 -- 100 813
Warner Lambert Co 479 70,054 2,197 321,311
Watson Pharmaceutical Inc 300 10,763 800 28,700
Xoma Corp+ 188 934 0 --
Zeneca Group PLC ADR (UK) 558 74,179 1,977 262,817
------------ ------------
TOTAL PHARMACEUTICALS
- VALUE $ 2,131,902 $ 8,331,579
- COST $ 1,338,862 $ 4,715,385
PUBLISHING
PERCENT OF NET ASSETS 0.39% 0.73%
American Greetings Corp
Class A 133 $ 6,068 705 $ 32,166
Barnes & Noble 400 14,050 500 17,563
Belo (A H) Corp 256 14,016 340 18,615
Central Newspapers Class A 0 -- 200 14,288
Chris-craft Industries Inc 116 6,496 262 14,602
Comcast Corp Class A 455 15,925 2,744 96,040
Donnelley (R R) & Sons Co 259 10,263 1,300 51,513
Dow Jones & Co Inc 204 10,481 888 45,621
E.W. Scripps Co 100 5,306 200 10,613
Elsevier NV ADR
(Netherlands) 3,987 150,260 13,261 499,774
Ennis Business Forms Inc 0 -- 0 --
Gannett Co Inc 478 30,861 2,245 144,943
Gibson Greetings Inc+ 0 -- 0 --
Golden Books Family
Entertainment Inc+ 234 2,750 0 --
Harland (John H) Co 55 835 248 3,767
Houghton Mifflin Co 304 9,652 240 7,620
Interpublic Group Co Inc 128 6,976 1,029 56,081
Knight-Ridder Inc 144 8,100 797 44,831
Lee Enterprises Inc 498 15,438 0 --
Liberty Media Group Class A 1,279 35,093 2,908 79,775
Marvel Entertainment Group
Inc+ 0 -- 200 175
Mcgraw-Hill Inc 176 13,310 840 63,525
</TABLE>
88
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
19,506 $ 1,454,416 17,679 $ 1,318,190 32,597 $ 2,430,514
1,600 59,200 1,400 51,800 3,000 111,000
1,252 13,459 842 9,052 1,680 18,060
23,565 2,085,502 20,453 1,810,090 50,505 4,469,693
10,084 398,948 8,754 346,330 14,658 579,907
955 12,415 792 10,296 1,547 20,111
400 24,325 400 24,325 900 54,731
13,388 1,018,325 11,569 879,967 28,528 2,169,911
214 7,115 176 5,852 351 11,671
17,391 1,076,068 15,763 975,336 29,089 1,799,882
2,906 118,762 2,681 109,565 5,903 241,265
0 -- 0 -- 300 2,438
4,920 719,550 4,275 625,219 10,561 1,544,546
1,700 60,988 1,400 50,225 3,000 107,625
193 959 193 959 0 --
4,539 603,403 4,106 545,841 7,461 991,847
------------ ------------ ------------
$ 18,896,610 $ 16,597,995 $ 37,344,649
$ 10,563,466 $ 9,453,253 $ 22,825,459
1.01% 1.26% 1.41%
1,536 $ 70,080 1,192 $ 54,385 2,080 $ 94,900
1,000 35,125 800 28,100 1,800 63,225
714 39,091 644 35,259 1,340 73,365
400 28,575 300 21,431 700 50,006
492 27,479 335 18,683 227 12,647
6,525 228,375 5,437 190,295 13,600 476,000
2,928 116,022 2,433 96,408 4,205 166,623
1,930 99,154 1,604 82,406 2,715 139,483
500 26,531 400 21,225 50,059 1,886,599
29,926 1,127,836 27,163 1,023,706 0 --
247 2,624 0 -- 900 47,756
5,151 332,561 4,436 286,399 11,014 711,091
244 5,368 0 -- 0 --
313 3,678 233 2,738 0 --
620 9,416 616 9,356 1,015 15,415
460 14,605 310 9,843 890 28,258
2,325 126,713 2,058 112,161 4,760 259,420
1,724 96,975 1,481 83,306 2,403 135,169
708 21,948 510 15,810 0 --
4,181 114,702 5,489 150,591 11,838 324,805
1,400 1,225 200 175 600 525
1,965 148,603 1,737 131,361 2,890 218,556
</TABLE>
89
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Media General Inc Class A 280 $ 13,160 220 $ 10,340
Meredith Corp 102 4,380 434 18,635
Moore Corp Ltd 104 1,632 783 12,283
New York Times Co Class A 216 14,135 899 58,828
News Corporation Ltd 954 24,267 3,180 80,891
Primedia Inc+ 0 -- 200 2,763
Readers Digest Association
Class A 300 7,969 800 21,250
Readers Digest Association
Class B 200 5,500 300 8,250
Scholastic Inc+ 200 7,925 200 7,925
Times Mirror Co Class A 152 9,358 859 52,882
Washington Post Co Class B 27 13,325 100 49,350
------------ ------------
TOTAL PUBLISHING
- VALUE $ 457,531 $ 1,524,909
- COST $ 355,215 $ 1,133,672
REAL ESTATE
PERCENT OF NET ASSETS 0.12% 0.24%
AMB Property Corp REIT 0 $ -- 100 $ 2,350
Boston Properties Inc REIT 0 -- 400 13,600
CarrAmercia Realty Corp REIT 0 -- 400 11,900
Castle & Cooke Inc+ 215 3,359 136 2,125
Catellus Development Corp+ 0 -- 700 12,688
Echelon International Corp+ 68 1,476 53 1,156
Equity Office Properties
Trust REIT 0 -- 1,962 57,879
Equity Residential
Properties Trust REIT 400 19,175 800 38,350
Federal Realty Investment
Trust 0 -- 0 --
FelCor Suite Hotels Inc REIT 0 -- 300 10,763
Franchise Finance Corp REIT 0 -- 100 2,675
Health & Retirement Property
Trust REIT 600 12,000 1,000 20,000
Health Care Property
Investors Inc REIT 300 11,138 300 11,138
Kimco Realty Corp REIT 300 10,538 350 12,294
Mack-Cali Realty Corp REIT 0 -- 500 18,875
MAXXAM Inc+ 0 -- 0 --
Meditrust Corp REIT 481 14,791 721 22,171
New Plan Realty Trust REIT 400 9,975 600 14,963
Patriot American Hospitality
Inc REIT 0 -- 700 17,500
Public Storage Inc REIT 0 -- 700 21,569
Security Capital Pacific
Trust REIT 200 4,588 500 11,469
Simon Debartolo Group Inc
REIT 300 9,263 700 21,613
Spieker Properties Inc 0 -- 400 15,875
Starwood Lodging Trust REIT 364 20,597 2,166 122,539
United Dominion Realty Trust
Inc REIT 0 -- 900 12,600
Vornado Realty Trust REIT 200 8,488 500 21,219
</TABLE>
90
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
410 $ 19,270 290 $ 13,630 570 $ 26,790
1,126 48,348 908 38,987 1,646 70,675
1,808 28,363 1,336 20,959 2,824 44,302
1,876 122,761 1,727 113,011 2,733 178,841
7,284 185,287 6,549 166,590 12,113 308,124
300 4,144 300 4,144 400 5,525
1,800 47,813 1,300 34,531 2,800 74,375
300 8,250 300 8,250 600 16,500
200 7,925 200 7,925 400 15,850
1,774 109,212 1,639 100,901 2,521 155,199
80 39,480 133 65,636 225 111,038
------------ ------------ ------------
$ 3,297,539 $ 2,948,202 $ 5,711,062
$ 2,391,886 $ 2,153,748 $ 4,263,347
0.31% 0.37% 0.49%
0 $ -- 200 $ 4,700 400 $ 9,400
700 23,800 600 20,400 1,500 51,000
900 26,775 800 23,800 1,700 50,575
336 5,250 222 3,469 341 5,328
1,400 25,375 1,300 23,563 2,800 50,750
96 2,084 69 1,511 65 1,418
4,065 119,918 3,384 99,828 7,668 226,206
1,400 67,113 1,200 57,525 3,100 148,606
0 -- 0 -- 400 9,900
700 25,113 500 17,938 1,200 43,050
0 -- 0 -- 200 5,350
2,200 44,000 1,800 36,000 700 25,988
400 14,850 500 18,563 3,800 76,000
450 15,806 600 21,075 1,300 45,663
1,000 37,750 800 30,200 2,000 75,500
128 6,816 0 -- 0 --
1,621 49,846 1,201 36,931 3,440 105,780
1,400 34,913 1,100 27,431 2,200 54,862
1,200 30,000 1,200 30,000 3,700 92,500
1,400 43,138 1,200 36,975 2,900 89,356
800 18,350 900 20,644 2,300 52,756
1,600 49,400 1,300 40,138 2,800 86,450
700 27,781 700 27,781 1,900 75,406
4,569 258,416 3,793 214,565 7,456 421,733
1,900 26,600 1,600 22,400 3,300 46,200
1,000 42,438 800 33,950 2,300 97,606
</TABLE>
91
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Weingarten Realty Investors
REIT 200 $ 8,925 200 $ 8,925
Westfield America Inc REIT 0 -- 100 1,788
------------ ------------
TOTAL REAL ESTATE
- VALUE $ 134,313 $ 508,024
- COST $ 103,592 $ 428,490
RETAIL & RELATED
PERCENT OF NET ASSETS 0.97% 2.17%
Ann Taylor Stores Inc+ 247 $ 3,504 195 $ 2,767
Autozone Inc+ 256 7,744 1,311 39,658
Bed Bath & Beyond Inc+ 200 8,638 400 17,275
Benetton SpA ADR (Italy) 2,417 88,825 7,862 288,928
Best Buy Co Inc+ 0 -- 100 5,963
BJ's Wholesale Club Inc+ 365 12,364 0 --
Borders Group Inc 0 -- 700 23,319
CDW Computer Centers Inc+ 0 -- 100 6,850
Charming Shoppes Inc+ 59 264 951 4,250
Circuit City Stores Inc 147 5,678 884 34,145
Coles Myer Ltd ADR
(Australia) 1,124 47,138 3,832 160,704
CompUSA Inc+ 0 -- 900 31,500
Consolidated Stores Corp 418 17,190 968 39,809
Corporate Express Inc+ 650 6,581 1,050 10,631
Costco Co Inc+ 415 20,283 1,716 83,870
Dayton-Hudson Corp 284 21,957 1,744 134,833
Department 56 Inc+ 200 6,588 200 6,588
Dillards Inc Class A 228 8,123 948 33,773
Dollar General Corp 412 19,004 993 45,802
Dollar Tree Stores Inc 0 -- 200 8,675
Eastman Kodak Co 593 38,916 2,672 175,350
Family Dollar Stores Inc 280 9,975 620 22,088
Federated Department Stores
Inc+ 359 16,828 1,903 89,203
Fingerhut Co 505 12,530 400 9,925
Footstar Inc+ 46 1,380 245 7,350
Fred Myer Inc 0 -- 600 26,663
Gap Inc 778 34,767 3,255 145,458
Global Directmail Corp+ 200 4,325 200 4,325
Hancock Fabrics Inc 0 -- 0 --
Heilig Meyers Co 524 8,122 410 6,355
Home Depot Inc 1,183 75,490 5,871 374,644
Homebase Inc 365 2,555 0 --
Intelligent Electronics+ 0 -- 0 --
Ito Yokado Co Ltd ADR
(Japan) 430 93,310 1,290 279,930
Jones Apparel Group Inc+ 200 11,000 300 16,500
Jostens Inc 107 2,515 280 6,580
</TABLE>
92
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
400 $ 17,850 400 $ 17,850 900 $ 40,163
0 -- 300 5,363 400 7,150
------------ ------------ ------------
$ 1,013,382 $ 872,600 $ 1,994,696
$ 919,873 $ 805,194 $ 1,797,177
3.11% 3.83% 4.54%
351 $ 4,980 253 $ 3,589 237 $ 3,362
3,021 91,385 2,633 79,648 4,308 130,317
800 34,550 800 34,550 1,700 73,419
17,662 649,079 16,072 590,646 29,581 1,087,102
0 -- 300 17,888 600 35,775
497 16,836 367 12,432 0 --
1,200 39,975 1,200 39,975 2,600 86,613
0 -- 100 6,850 300 20,550
2,288 10,224 1,620 7,239 3,364 15,033
1,983 76,593 1,673 64,620 2,770 106,991
8,675 363,808 7,932 332,648 14,440 605,578
1,900 66,500 1,600 56,000 3,400 119,000
2,129 87,555 1,475 60,659 4,087 168,078
1,950 19,744 1,850 18,731 3,900 39,488
3,963 193,692 3,434 167,837 8,296 405,467
3,928 303,684 3,463 267,733 8,485 655,997
300 9,881 200 6,588 600 19,763
2,275 81,047 1,878 66,904 3,180 113,288
2,165 99,861 1,856 85,608 3,957 182,517
500 21,688 400 17,350 900 39,038
6,516 427,613 5,591 366,909 9,331 612,347
1,285 45,778 1,140 40,613 2,442 86,987
4,166 195,281 3,622 169,781 6,011 281,766
714 17,716 509 12,630 180 4,466
521 15,630 382 11,460 654 19,620
1,200 53,325 1,100 48,881 2,500 111,094
7,383 329,928 6,316 282,247 15,620 698,019
300 6,488 200 4,325 400 8,650
342 5,579 0 -- 0 --
834 12,927 544 8,432 1,300 20,150
13,306 849,090 11,586 739,332 28,423 1,813,743
497 3,479 367 2,569 0 --
540 3,628 0 -- 0 --
2,975 645,575 3,003 651,651 4,826 1,047,242
600 33,000 600 33,000 1,400 77,000
690 16,215 567 13,325 1,398 32,853
</TABLE>
93
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
K Mart Corp+ 804 $ 10,754 4,367 $ 58,409
Kohls Corp+ 286 22,934 620 49,716
Limited Inc 477 13,833 2,409 69,861
Longs Drug Stores Corp 76 2,408 349 11,059
Lowe's Co Inc 257 15,018 1,590 92,916
May Department Stores Co 394 23,936 2,018 122,594
Mercantile Stores Co Inc 102 6,713 340 22,376
Michaels Stores 0 -- 0 --
Micro Warehouse Inc+ 300 4,125 300 4,125
Midas Inc+ 11 187 146 2,567
Neiman Marcus Group Inc+ 0 -- 200 7,438
Newell Co 259 11,882 1,330 61,014
Nordstrom Inc 122 6,996 645 36,987
Office Depot Inc+ 538 14,795 1,350 37,068
Officemax Inc+ 500 8,344 1,250 20,859
Payless Shoesource Inc+ 217 14,593 411 27,640
Penney (J C) Co Inc 456 32,234 2,163 152,897
Petsmart Inc+ 1,200 9,150 1,300 9,913
Proffitts Inc 0 -- 500 16,938
Rite Aid Corp 218 7,058 1,978 64,038
Ross Stores Inc 0 -- 500 19,688
Ruddick Corp 0 -- 0 --
Saks Holdings Inc+ 200 5,225 200 5,225
Sears Roebuck & Co 708 37,568 3,505 185,984
Service Merchandise Co+ 771 1,783 0 --
Sherwin Williams Co 261 8,727 1,519 50,792
Staples Inc 894 18,886 1,696 35,817
Sunglass Hut International
Inc+ 600 4,275 500 3,563
Talbots Inc 200 3,563 200 3,563
Tandy Corp 226 10,057 895 39,828
Tech Data Corp+ 0 -- 400 18,600
TJX Companies Inc 163 6,296 1,318 50,908
Toys R Us Inc+ 471 12,364 2,521 66,176
Viking Office Products Inc+ 400 8,800 900 19,800
Walgreen Co 680 24,948 3,884 142,494
Walmart Stores Inc 4,048 187,473 17,993 833,301
Williams-sonoma Inc 0 -- 0 --
Woolworth (F W) Co+ 187 4,441 1,247 29,616
------------ ------------
TOTAL RETAIL & RELATED
- VALUE $ 1,124,960 $ 4,517,481
- COST $ 858,233 $ 3,074,761
</TABLE>
94
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
9,817 $ 131,302 8,137 $ 108,832 13,826 $ 184,923
1,304 104,565 1,208 96,867 2,558 205,120
5,517 159,993 4,667 135,343 7,826 226,954
794 25,160 671 21,262 1,256 39,800
3,499 204,473 2,992 174,845 5,009 292,713
4,585 278,539 3,934 238,991 6,697 406,843
730 48,043 585 38,500 1,100 72,394
0 -- 0 -- 200 6,800
600 8,250 400 5,500 700 9,625
342 6,003 266 4,666 511 8,972
400 14,875 400 14,875 800 29,750
3,004 137,809 2,586 118,633 6,030 276,626
1,503 86,188 1,263 72,425 2,176 124,780
2,442 67,155 2,367 65,240 5,080 139,700
2,700 45,056 2,150 35,878 4,650 77,597
743 49,967 715 48,084 1,504 101,144
4,961 350,681 4,357 307,985 7,225 510,717
2,200 16,775 1,600 12,200 3,000 22,875
1,000 33,875 900 30,488 1,500 50,813
5,032 162,911 4,204 136,105 7,206 233,294
900 35,438 900 35,438 1,900 74,813
714 12,941 524 9,498 0 --
500 13,063 400 10,450 900 23,513
7,787 413,198 6,726 356,898 11,275 598,280
1,516 3,506 1,111 2,569 0 --
3,462 115,761 2,918 97,571 4,970 166,184
3,245 68,540 3,060 64,643 6,686 141,231
1,000 7,125 700 4,988 1,300 9,263
0 -- 200 3,563 400 7,125
2,122 94,429 1,717 76,406 2,958 131,631
700 32,550 700 32,550 1,600 74,400
2,929 113,133 2,607 100,695 6,191 239,127
5,770 151,463 4,917 129,071 8,113 212,966
2,000 44,000 1,600 35,200 3,300 72,600
8,962 328,793 7,856 288,217 19,170 703,299
41,060 1,901,591 35,580 1,647,799 87,954 4,073,370
0 -- 0 -- 200 10,300
2,678 63,602 2,311 54,886 3,809 90,464
------------ ------------ ------------
$ 10,163,087 $ 8,939,811 $ 18,371,319
$ 6,849,987 $ 6,104,225 $ 13,044,296
</TABLE>
95
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
SERVICES
PERCENT OF NET ASSETS 0.10% 0.15%
Block (H R) Inc 115 $ 5,412 828 $ 38,968
Cms Energy Corp 921 40,754 740 32,745
Corrections Corp of America+ 400 15,300 700 26,775
Dun & Bradstreet Corp 180 6,030 1,435 48,073
Public Service Enterprise
Group 388 12,513 2,035 65,629
Service Corp International 409 15,491 2,218 84,007
Sotheby's Holdings Inc 611 12,411 0 --
Stewart Enterprises Inc
Class A 250 11,781 450 21,206
------------ ------------
TOTAL SERVICES
- VALUE $ 119,692 $ 317,403
- COST $ 84,660 $ 233,555
SHIPPING
PERCENT OF NET ASSETS 0.01% 0.00%
Halter Marine Group Inc 273 $ 5,358 282 $ 5,534
------------ ------------
TOTAL SHIPPING
- VALUE $ 5,358 $ 5,534
- COST $ 3,161 $ 3,332
TELECOMMUNICATIONS
PERCENT OF NET ASSETS 2.29% 4.71%
360 Communications Co+ 1,525 $ 40,413 1,519 $ 40,254
ADC Telecommunications+ 672 17,346 1,260 32,524
Adtran Inc+ 100 2,988 200 5,975
Advanced Fibre Communication 0 -- 500 14,969
Airtouch Communications+ 910 40,893 4,068 182,806
Alcatel Alsthom Compagnie
Generale d'electricite ADR
(France) 3,965 103,833 13,120 343,580
Aliant Communications Inc 0 -- 0 --
Alltel Corp 329 15,031 1,637 74,790
Ameritech Corp 1,914 79,790 8,702 362,765
Andrew Corp 160 4,420 763 21,064
Ascend Communications Inc+ 750 28,078 1,800 67,388
Aspect Telecommunication
Corp+ 0 -- 500 13,188
AT & T Corp 2,814 171,302 13,487 821,021
Bell Atlantic Corp 1,292 115,957 6,245 560,489
Bellsouth Corp 1,680 102,480 8,252 503,372
British Telecommunications
PLC ADR (UK) 2,374 239,774 7,723 780,023
Century Telephone Enterprise 567 34,587 460 28,060
Ciena Corp+ 0 -- 500 20,969
Comsat Corp 510 17,053 600 20,063
Cox Communications Inc Class
A+ 313 12,070 674 25,991
Deutsche Telekom Ag ADR
(Germany) 4,976 99,520 16,458 329,160
</TABLE>
96
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0.22% 0.27% 0.27%
2,084 $ 98,078 1,743 $ 82,030 2,990 $ 140,717
1,314 58,144 954 42,214 885 39,161
1,400 53,550 1,300 49,725 2,900 110,925
3,141 105,224 2,643 88,541 6,506 217,951
4,644 149,769 4,016 129,516 6,664 214,914
5,112 193,617 4,446 168,392 7,309 276,828
848 17,225 623 12,655 0 --
750 35,344 800 37,700 1,700 80,113
------------ ------------ ------------
$ 710,951 $ 610,773 $ 1,080,609
$ 508,885 $ 450,321 $ 848,626
0.00% 0.01% 0.00%
369 7,242 330 6,476 630 12,297
------------ ------------ ------------
$ 7,242 $ 6,476 $ 12,297
$ 4,327 $ 3,853 $ 7,435
6.80% 8.37% 9.66%
2,624 $ 69,536 2,128 $ 56,392 3,954 $ 104,781
2,896 74,753 2,316 59,782 5,020 129,579
200 5,975 300 8,963 700 20,912
900 26,944 900 26,944 1,900 56,881
9,166 411,897 7,997 359,365 19,655 883,247
29,451 771,248 26,715 699,599 49,311 1,291,332
490 12,863 0 -- 0 --
3,705 169,272 3,140 143,459 5,339 243,926
19,938 831,165 17,296 721,027 42,504 1,771,886
1,659 45,830 1,416 39,103 3,374 93,193
3,500 131,031 3,210 120,174 7,060 264,309
0 -- 0 -- 1,100 29,013
32,351 1,969,367 27,869 1,696,525 46,849 2,851,933
14,201 1,274,540 12,294 1,103,386 30,347 2,723,643
19,813 1,208,593 17,090 1,042,490 28,649 1,747,589
17,343 1,751,643 15,812 1,587,545 29,069 2,935,969
828 50,508 588 35,868 565 34,465
1,000 41,938 900 37,744 1,900 79,681
819 27,385 814 27,218 1,290 43,134
1,294 49,900 1,127 43,460 2,449 94,440
37,015 740,300 33,544 670,880 61,801 1,236,020
</TABLE>
97
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
DSC Communications Corp+ 226 $ 4,435 1,048 $ 20,567
DSP Communications Inc+ 0 -- 500 8,844
Ericsson L M Telephone ADR
(Sweden) 1,341 60,764 4,463 202,230
Excel Communications Inc+ 400 8,425 600 12,638
Federal Signal Corp 498 11,703 490 11,515
Frontier Corp 290 8,029 1,500 41,531
Glenayre Technologies Inc 650 7,516 650 7,516
GTE Corp 1,666 90,172 7,643 413,677
Hong Kong Telecommunications
Ltd ADR (Hong Kong) 12,262 257,502 40,145 843,037
LCI International Inc+ 300 9,900 300 9,900
Loral Space &
Communications+ 842 21,524 1,782 45,552
Lucent Technologies Inc 1,169 126,690 5,154 558,565
MCI Communications Corp 1,194 57,088 5,797 277,169
McLeod Inc Class A+ 0 -- 300 11,691
Mobile Telecommunications
Tech+ 0 -- 400 8,200
NEXTEL Communications Class
A+ 1,068 31,573 880 26,015
Nippon Telegraph & Telegraph
ADR (Japan) 1,824 80,256 5,739 252,516
Nokia Corp 253 25,490 944 95,108
Northern Telecom Ltd 1,002 53,419 4,174 222,526
Omnipoint Corp+ 200 5,600 300 8,400
Paging Network Inc+ 500 7,250 600 8,700
Pairgain Technologies Inc+ 0 -- 500 10,063
Picturetel Corp+ 400 2,875 400 2,875
Qualcom Inc+ 300 15,300 600 30,600
Qwest Communications
International Inc 0 -- 300 10,538
SBC Communication Inc 1,653 125,008 7,336 554,785
Scientific-Atlanta Inc 85 1,488 684 11,970
Southern New England
Telecommunications Co 687 43,367 550 34,719
Sprint Corp 695 45,870 3,523 232,518
Tele Danmark A/S ADR
(Denmark) 1,709 55,756 5,678 185,245
Tele-Communications-TCI
Ventures Group Class A 516 7,966 3,690 56,964
Telecommunications of New
Zealand Corp ADR (New
Zealand) 1,169 44,860 3,958 151,888
Telefonica De Espana SA ADR
(Spain) 578 59,823 2,025 209,588
Telephone & Data System Inc 566 24,656 450 19,603
Teleport Communications
Group Inc Class A+ 300 16,388 600 32,775
Tellabs Inc+ 257 15,516 1,481 89,415
U.S. West Inc 864 44,982 4,241 220,797
Vanguard Cellular Systems
Class A+ 411 5,343 330 4,290
Vodafone Group PLC ADR (UK) 1,108 98,058 3,582 317,007
</TABLE>
98
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
2,339 $ 45,903 1,976 $ 38,779 3,337 $ 65,489
0 -- 600 10,613 1,000 17,688
10,037 454,802 9,078 411,347 16,755 759,211
1,300 27,381 1,100 23,169 2,300 48,444
807 18,965 802 18,847 1,780 41,830
3,337 92,393 2,754 76,251 4,622 127,972
1,175 13,586 800 9,250 1,425 16,477
17,462 945,131 15,129 818,857 37,197 2,013,288
90,275 1,895,780 81,824 1,718,314 146,485 3,076,183
600 19,800 500 16,500 900 29,700
3,812 97,444 3,174 81,135 7,066 180,625
11,699 1,267,879 10,166 1,101,740 24,952 2,704,173
13,902 664,689 11,959 571,790 20,099 960,983
600 23,381 500 19,484 1,300 50,659
0 -- 0 -- 0 --
1,588 46,945 1,101 32,548 1,025 30,302
13,060 574,640 13,258 583,352 21,374 940,456
2,183 219,937 1,976 199,082 3,651 367,838
9,560 509,668 8,248 439,722 20,372 1,086,082
400 11,200 400 11,200 600 16,800
1,500 21,750 800 11,600 1,500 21,750
1,100 22,138 900 18,113 1,800 36,225
700 5,031 500 3,594 800 5,750
1,200 61,200 1,000 51,000 2,300 117,300
600 21,075 600 21,075 1,200 42,150
16,665 1,260,291 14,426 1,090,966 35,725 2,701,703
1,559 27,283 1,265 22,138 2,454 42,945
975 61,547 710 44,819 680 42,925
8,530 562,980 7,339 484,374 12,381 817,146
12,791 417,306 11,616 378,972 21,428 699,089
7,502 115,812 6,768 104,481 23,096 356,544
8,783 337,048 8,048 308,842 14,738 565,571
4,543 470,201 4,129 427,352 7,600 786,600
827 36,026 587 25,571 565 24,613
1,200 65,550 1,000 54,625 3,300 180,263
3,317 200,264 2,856 172,431 7,088 427,938
9,630 501,362 8,302 432,223 13,923 724,866
595 7,735 427 5,551 390 5,070
7,996 707,646 7,309 646,847 13,402 1,186,077
</TABLE>
99
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Western Wireless Corp Class
A+ 0 $ -- 100 $ 1,888
Worldcom Inc+ 1,544 58,962 8,091 308,975
------------ ------------
TOTAL TELECOMMUNICATIONS
- VALUE $ 2,659,089 $ 9,820,851
- COST $ 2,066,161 $ 7,066,297
TEXTILES
PERCENT OF NET ASSETS 0.05% 0.04%
Brown Group Inc 31 $ 461 180 $ 2,678
Burlington Industries Inc+ 729 12,074 477 7,900
Cintas Corp 420 17,850 600 25,500
Collins & Aikman Corp 0 -- 0 --
Shaw Industries Inc 1,260 14,963 1,330 15,794
Springs Industries Inc Class
A 33 1,846 195 10,908
Unifi Inc 268 9,849 600 22,050
------------ ------------
TOTAL TEXTILES
- VALUE $ 57,043 $ 84,830
- COST $ 44,958 $ 67,922
TOBACCO
PERCENT OF NET ASSETS 0.29% 0.66%
BAT Industries PLC ADR (UK) 5,303 $ 106,391 17,454 $ 350,171
Fortune Brands Inc 260 10,319 1,516 60,166
Gallaher Group PLC ADR (UK) 153 3,538 1,391 32,167
Philip Morris Co Inc 4,281 185,956 19,397 842,557
Swedish Match AB ADR
(Sweden) 814 26,252 2,602 83,915
------------ ------------
TOTAL TOBACCO
- VALUE $ 332,456 $ 1,368,976
- COST $ 282,203 $ 1,046,002
TRANSPORTATION
PERCENT OF NET ASSETS 0.21% 0.41%
Alexander & Baldwin Inc 204 $ 5,763 390 $ 11,018
Burlington Northern Santa Fe 296 29,489 1,413 140,770
Carnival Corp Class A 0 -- 1,400 82,425
CNF Transportation Inc 62 2,426 461 18,037
Consolidated Freightways
Corp+ 31 465 181 2,708
CSX Corp 377 21,088 1,913 107,008
Dial Corp 136 3,222 1,080 25,583
Fritz Companies Inc+ 200 2,775 200 2,775
Hunt (J B) Transport
Services 0 -- 0 --
Illinois Central Corp 411 15,952 590 22,899
Kansas City Southern
Industries 543 20,193 1,110 41,278
Laidlaw Inc Class B 495 7,270 2,979 43,754
Norfolk Southern Corp 692 23,831 3,300 113,644
</TABLE>
100
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
0 $ -- 0 $ -- 300 $ 5,663
18,375 701,695 15,480 591,143 29,421 1,123,514
------------ ------------ ------------
$ 22,198,152 $ 19,557,621 $ 39,083,835
$ 15,779,497 $ 14,138,553 $ 29,354,989
0.05% 0.06% 0.08%
338 $ 5,028 221 $ 3,287 253 $ 3,763
1,136 18,815 749 12,405 1,902 31,502
1,140 48,450 1,030 43,775 2,380 101,150
0 -- 0 -- 400 3,150
2,415 28,678 2,305 27,372 4,700 55,813
403 22,543 319 17,844 650 36,359
1,182 43,438 982 36,089 2,240 82,320
------------ ------------ ------------
$ 166,952 $ 140,772 $ 314,057
$ 126,777 $ 108,685 $ 267,037
0.95% 1.16% 1.47%
39,508 $ 792,629 35,781 $ 717,856 66,006 $ 1,324,245
3,494 138,668 2,894 114,856 4,892 194,151
3,016 69,745 2,266 52,401 0 --
44,159 1,918,157 38,208 1,659,660 94,562 4,107,537
5,962 192,275 5,367 173,086 9,959 321,178
------------ ------------ ------------
$ 3,111,474 $ 2,717,859 $ 5,947,111
$ 2,379,617 $ 2,079,019 $ 4,812,072
0.55% 0.68% 0.72%
814 $ 22,996 809 $ 22,854 1,580 $ 44,635
3,129 311,727 2,685 267,493 4,534 451,700
2,400 141,300 2,500 147,188 5,400 317,925
810 31,691 873 34,156 1,838 71,912
405 6,075 286 4,290 569 8,535
4,343 242,937 3,783 211,612 6,277 351,120
1,641 38,871 1,828 43,301 3,908 92,571
300 4,163 0 -- 400 5,550
596 15,943 0 -- 0 --
1,135 44,052 1,015 39,395 2,202 85,465
2,295 85,345 1,955 72,702 4,280 159,163
6,633 97,422 5,452 80,076 9,312 136,770
7,546 259,865 6,643 228,768 10,857 373,888
</TABLE>
101
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Overseas Shipholding Group 393 $ 8,155 310 $ 6,433
Pittston Brink's Group 323 12,476 420 16,223
Pittston Burlington Group 61 1,346 160 3,530
Roadway Express Inc 46 1,058 158 3,634
Tidewater Inc 365 16,243 550 24,475
Trinity Industries Inc 322 16,181 440 22,110
Union Pacific Corp 468 23,868 2,239 114,189
Viad Corp 136 3,290 880 21,285
Wisconsin Central Transport+ 400 10,850 500 13,563
Xtra Corp 200 12,300 200 12,300
Yellow Corp+ 49 1,032 223 4,697
------------ ------------
TOTAL TRANSPORTATION
- VALUE $ 239,273 $ 854,338
- COST $ 190,923 $ 679,939
UTILITIES
PERCENT OF NET ASSETS 0.98% 1.18%
AES Corp 1,568 $ 68,928 1,280 $ 56,320
Allegheny Energy Inc 1,284 39,242 1,010 30,868
Ameren Corp+ 208 7,995 897 34,478
American Electric Power Inc 306 14,688 1,650 79,200
American Water Works Co Inc 300 9,000 700 21,000
Atlantic Energy Inc 569 11,575 460 9,368
Baltimore Gas & Electric Co 237 7,480 1,279 40,368
Calenergy Inc+ 200 5,363 500 13,406
Carolina Power & Light Co 263 10,980 1,383 57,740
Central & South West Corp 340 9,116 1,898 50,890
Cinergy Corp 327 11,384 1,427 49,677
Consolidated Edison Inc 445 18,913 2,044 86,870
Delmarva Power & Light Co 640 13,800 510 10,997
Dominion Resources Inc 278 11,085 1,645 65,594
DTE Energy Co 238 8,747 1,330 48,877
Duke Power Co 651 36,171 3,190 177,244
Edison International 727 20,083 3,533 97,599
Entergy Corp 440 12,733 2,136 61,810
FirstEnergy Corp 350 10,128 2,010 58,164
Florida Progress Corp 1,015 39,268 800 30,950
FPL Group Inc 341 19,799 1,628 94,526
GPU Inc 242 9,725 1,073 43,121
Hawaiian Electric Industries
Inc 192 7,776 340 13,770
Houston Industries Inc 434 11,230 2,518 65,153
Idaho Power Co 402 14,045 320 11,180
IES Industries 0 -- 0 --
Illinova Corp 813 22,561 650 18,038
</TABLE>
102
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
550 $ 11,413 405 $ 8,404 375 $ 7,781
657 25,377 743 28,698 1,604 61,955
328 7,237 221 4,876 402 8,869
270 6,210 243 5,589 359 8,257
1,225 54,513 1,085 48,283 2,265 100,792
705 35,426 735 36,934 1,605 80,651
4,905 250,155 4,258 217,158 7,135 363,885
1,641 39,692 1,528 36,958 3,308 80,012
1,200 32,550 900 24,413 1,900 51,538
300 18,450 200 12,300 500 30,750
585 12,322 299 6,298 437 9,204
------------ ------------ ------------
$ 1,795,732 $ 1,581,746 $ 2,902,928
$ 1,386,657 $ 1,252,900 $ 2,533,040
1.64% 1.90% 1.73%
2,296 $ 101,024 1,596 $ 70,224 1,500 $ 66,000
1,809 55,288 1,319 40,312 1,230 37,592
2,736 105,165 2,310 88,791 3,905 150,098
3,801 182,448 3,250 156,000 5,420 260,160
1,400 42,000 1,200 36,000 2,500 75,000
830 16,911 590 12,021 550 11,206
2,968 93,678 2,489 78,559 4,187 132,152
900 24,131 800 21,450 2,400 64,350
3,024 126,252 2,584 107,882 4,354 181,779
4,320 115,830 3,677 98,590 6,078 162,966
3,186 110,913 2,646 92,114 4,514 157,144
4,733 201,152 3,967 168,597 6,753 287,003
903 19,471 648 13,932 615 13,261
3,704 147,697 3,149 125,566 5,311 211,776
2,943 108,155 2,447 89,927 4,121 151,447
7,226 398,910 6,149 340,100 10,401 577,906
7,587 209,591 6,515 179,977 10,982 303,378
4,875 141,070 4,234 122,521 7,009 202,823
4,650 134,559 3,915 113,290 6,620 191,566
1,434 55,478 1,039 40,196 980 37,914
3,644 211,580 3,130 181,736 5,289 307,093
2,442 98,138 2,081 83,630 3,667 147,368
723 29,281 603 24,422 1,180 47,790
5,764 149,144 4,880 126,270 8,122 210,157
585 20,438 415 14,499 385 13,451
0 -- 0 -- 300 10,856
1,153 31,996 843 23,393 780 21,645
</TABLE>
103
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
IPALCO Enterprises Inc 607 $ 25,911 480 $ 20,490
Kansas City Power & Light Co 667 20,093 530 15,966
Keyspan Energy Corp 510 18,137 400 14,225
LG & E Energy Corp 728 17,427 560 13,405
Midamerican Energy Co 451 9,358 367 7,615
Minnesota Power & Light Co 349 14,113 270 10,918
Montana Power Co 563 18,016 460 14,720
National Power ADR (UK) 1,028 42,534 3,200 132,400
Nevada Power Co 444 11,017 360 8,933
New Century Energies Inc 1,072 49,982 862 40,191
New England Electric System 695 29,277 560 23,590
New York State Electric &
Gas Corp 772 28,998 610 22,913
Niagara Mohawk Power Corp+ 131 1,678 1,197 15,337
NIPSCO Industries Inc 1,404 36,065 1,120 28,770
Northeast Utilities 1,340 16,750 1,070 13,375
Northern States Power Co 170 9,339 640 35,160
OGE Energy Corp 429 23,166 340 18,360
Pacificorp 507 12,263 2,593 62,718
PECO Energy Co 322 6,360 1,988 39,263
PG & E Corp 1,056 31,878 3,920 118,335
Pinnacle West Capital Corp 941 38,405 750 30,609
Potomac Electric Power Co 1,282 32,210 1,010 25,376
PP & L Resources Inc 257 5,750 1,470 32,891
Public Service Company Of
New Mexico 0 -- 0 --
Puget Sound Power & Light Co 683 18,526 540 14,648
SCANA Corp 1,026 29,498 820 23,575
Southern Co 1,215 29,995 6,070 149,853
TECO Energy Inc 1,265 33,285 990 26,049
Texas Utilities Co 451 18,237 2,164 87,507
Unicom Corp 408 13,082 1,944 62,330
Wisconsin Energy Corp 1,148 31,283 920 25,070
Wisconsin Power & Light
Holdings Co 341 10,869 260 8,288
------------ ------------
TOTAL UTILITIES
- VALUE $ 1,135,317 $ 2,470,088
- COST $ 860,011 $ 2,050,370
</TABLE>
104
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
882 $ 37,650 627 $ 26,765 577 $ 24,631
955 28,769 690 20,786 645 19,431
719 25,569 514 18,279 490 17,426
992 23,746 732 17,522 690 16,517
680 14,110 489 10,147 0 --
480 19,410 350 14,153 335 13,547
824 26,368 584 18,688 540 17,280
7,311 302,493 6,656 275,392 12,258 507,175
652 16,178 472 11,712 450 11,166
1,535 71,569 1,122 52,313 1,029 47,977
1,008 42,462 718 30,246 690 29,066
1,087 40,830 787 29,562 740 27,796
3,027 38,783 2,486 31,852 4,509 57,772
2,030 52,146 1,480 38,017 1,350 34,678
1,916 23,950 1,386 17,325 1,290 16,125
1,547 84,988 1,243 68,287 2,174 119,434
612 33,048 442 23,868 415 22,410
6,005 145,246 5,016 121,324 8,574 207,384
4,507 89,013 3,730 73,668 6,287 124,168
8,784 265,167 7,826 236,247 12,672 382,536
1,334 54,444 974 39,751 905 36,935
1,806 45,376 1,316 33,064 1,230 30,904
3,282 73,435 2,923 65,402 4,727 105,767
650 15,153 470 10,957 0 --
971 26,338 706 19,150 655 17,767
1,446 41,573 1,036 29,785 980 28,175
13,855 342,045 11,851 292,572 19,965 492,886
1,789 47,073 1,284 33,785 1,220 32,101
4,958 200,489 4,236 171,293 7,086 286,540
4,387 140,658 3,684 118,118 6,157 197,409
1,645 44,826 1,175 32,019 1,105 30,111
473 15,077 343 10,933 325 10,359
------------ ----------- ------------ ----------- ------------
$ 5,358,282 $ 4,442,981 $ 6,999,354
$ 4,368,224 $ 3,656,574 $ 5,947,913
</TABLE>
105
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------
WARRANTS
PERCENT OF NET ASSETS 0.00% 0.00%
Edison Brothers Stores
expires 09/26/2005+ 0 $ -- 0 --
Morrison Knudsen Corp
expires 03/11/2003+ 4 24 17 $ 100
Security Capital Group
Purchase Inc expires
09/18/1998 0 0 0 $ 1
------------ ------------
TOTAL WARRANTS
- VALUE $ 24 $ 101
- COST $ 18 $ 76
TOTAL COMMON STOCKS
- VALUE $ 27,452,542 $100,646,983
- COST $ 20,687,829 $ 70,973,387
</TABLE>
106
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<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%
16 $ 50 0 $ -- 0 $ --
27 159 25 147 42 247
0 0 0 0 0 0
------------ ------------ ------------
$ 209 $ 147 $ 247
$ 5,050 $ 109 $ 184
$227,616,740 $199,858,694 $402,385,045
$158,197,180 $140,521,777 $301,288,885
</TABLE>
107
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
U.S. TREASURY SECURITIES
PERCENT OF NET ASSETS 50.88% 41.70%
U.S. TREASURY BONDS
PERCENT OF NET ASSETS 3.10% 3.59%
U.S. Treasury Bonds, 6.00% -
13.875%, 11/15/02 -08/15/27 $ 2,850,000 $ 3,603,094 $ 5,900,000 $ 7,463,578
------------ ------------
TOTAL U.S. TREASURY BONDS
- VALUE $ 3,603,093 $ 7,463,578
- COST $ 3,597,911 $ 7,226,745
U.S. TREASURY NOTES
PERCENT OF NET ASSETS 47.78% 38.11%
U.S. Treasury Notes, 5.00% -
9.125%, 02/15/99 -08/15/07 $54,000,000 $ 55,521,717 $77,000,000 $ 79,360,739
------------ ------------
TOTAL U.S. TREASURY NOTES
- VALUE $ 55,521,717 $ 79,360,739
- COST $ 54,747,124 $ 78,063,513
TOTAL U.S. TREASURY
SECURITIES
- VALUE $ 59,124,810 $ 86,824,317
- COST $ 58,345,035 $ 85,290,258
</TABLE>
108
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
24.45% 12.03% 0.00%
5.34% 11.49% 0.00%
$14,150,000 $ 17,412,904 $25,139,792 $ 26,831,305 $ 0 $ 0
------------ ------------ ------------
$ 17,412,904 $ 26,831,305 --
$ 16,414,576 $ 25,139,792 --
19.11% 0.54% 0.00%
$60,445,000 $ 62,343,617 $ 1,216,612 $ 1,265,844 $ 0 $ 0
------------ ------------ ------------
$ 62,343,617 $ 1,265,843 --
$ 61,322,505 $ 1,216,612 --
$ 79,756,521 $ 28,097,148 --
$ 77,737,081 $ 26,356,404 --
</TABLE>
109
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal/ Principal/
Shares Value Shares Value
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS
PERCENT OF NET ASSETS 34.52% 18.58%
U.S. TREASURY BILLS
PERCENT OF NET ASSETS 24.33% 8.42%
U.S. Treasury Bills, 4.48%-
5.38%*, 03/05/98-04/30/98 $28,484,000 $ 28,266,919 $17,638,000 $ 17,533,750
------------ ------------
TOTAL U.S. TREASURY BILLS
- VALUE $ 28,266,919 $ 17,533,750
- COST $ 28,267,423 $ 17,532,180
CASH EQUIVALENTS
PERCENT OF NET ASSETS 5.89% 5.84%
Dreyfus Institutional Money
Market Fund++ 1,643,608 $ 1,643,608 2,156,344 $ 2,156,344
Janus Institutional Money
Market Fund++ 3,000,000 3,000,000 7,000,000 7,000,000
Merrimac Cash Fund-Premium
Class++ 2,200,000 2,200,000 3,000,000 3,000,000
------------ ------------
TOTAL CASH EQUIVALENTS
- VALUE $ 6,843,608 $ 12,156,344
- COST $ 6,843,608 $ 12,156,344
</TABLE>
110
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ ------------------------
Principal/ Principal/ Principal/
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
14.76% 11.81% 10.58%
5.46% 2.71% 1.03%
$17,926,000 $ 17,806,745 $ 6,319,259 $ 6,319,984 $ 4,208,000 $ 4,180,230
------------ ------------ ------------
$ 17,806,745 $ 6,319,984 $ 4,180,230
$ 17,806,700 $ 6,319,279 $ 4,179,249
5.01% 5.25% 5.84%
2,365,516 $ 2,365,516 3,263,638 $ 3,263,638 2,849,215 $ 2,849,215
8,000,000 8,000,000 5,000,000 5,000,000 13,000,000 13,000,000
6,000,000 6,000,000 4,000,000 4,000,000 7,800,000 7,800,000
------------ ------------ ------------
$ 16,365,516 $ 12,263,638 $ 23,649,215
$ 16,365,516 $ 12,263,638 $ 23,649,215
</TABLE>
111
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
PORTFOLIOS OF INVESTMENTS
<TABLE>
<CAPTION>
LifePath 2000 LifePath 2010
------------------------ ------------------------
Principal Value Principal Value
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS
PERCENT OF NET ASSETS 4.30% 4.32%
Goldman Sachs Repurchase
Agreements++, dated
2/27/98, due 3/2/98,
with a maturity value
of $52,024,559 and an
effective yield of
5.67%, collateralized
by Federal Home Loan
Mortgage Corporation
obligations with rates
ranging from 6.00% to
8.50%, with maturity
dates ranging from
4/1/03 to 11/1/26 and
with an aggregate
market value of
$53,040,000. $ 5,000,000 $ 5,000,000 $ 9,000,000 $ 9,000,000
------------ ------------
TOTAL SHORT-TERM
INSTRUMENTS
- VALUE $ 40,110,527 $ 38,690,094
- COST $ 40,111,031 $ 38,688,524
------------ ------------
TOTAL INVESTMENT IN
SECURITIES
(NOTES 1 AND 3) - VALUE $126,687,879 $226,161,394
- COST** $119,143,895 $194,952,169
------------ ------------
TOTAL INVESTMENT IN
SECURITIES 109.03% $126,687,879 108.62% $226,161,394
Other Assets and
Liabilities, Net (9.03)% (10,488,878) (8.62)% $(17,943,695)
----------- ------------ ----------- ------------
TOTAL NET ASSETS 100.00% $116,199,001 100.00% $208,217,699
=========== ============ =========== ============
** Cost for federal in-
come tax purposes is: $119,174,138 $194,988,660
Net Unrealized
Appreciation consists
of:
Gross Unrealized
Appreciation $ 8,505,024 $ 33,474,443
Gross Unrealized
Depreciation (991,283) (2,301,709)
------------ ------------
GROSS UNREALIZED
APPRECIATION $ 7,513,741 $ 31,172,734
============ ============
</TABLE>
+ Non-income earning securities.
++ Represents investment of collateral received from securities lending trans-
actions. See Note 4.
* Yield to Maturity.
The accompanying notes are an integral part of these financial statements.
112
<PAGE>
MASTER INVESTMENT PORTFOLIO--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath 2020 LifePath 2030 LifePath 2040
- ------------------------- ------------------------ -------------------------
Principal Value Principal Value Principal Value
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------
4.29% 3.85% 3.71%
$14,000,000 $ 14,000,000 $ 9,000,000 $ 9,000,000 $15,000,000 $ 15,000,000
------------ ------------ -------------
$ 48,172,261 $ 27,583,622 $ 42,829,445
$ 48,172,216 $ 27,582,917 $ 42,828,464
------------ ------------ -------------
$355,545,522 $255,539,464 $ 445,214,490
$284,106,477 $194,461,098 $ 344,117,349
------------ ------------ -------------
108.97% $355,545,522 109.39% $255,539,464 110.00% $ 445,214,490
(8.97)% (29,274,760) (9.39)% $(21,929,091) (10.00)% (40,485,383)
- ----------- ------------ ----------- ------------ ----------- -------------
100.00% $326,270,762 100.00% $233,610,373 100.00% $ 404,729,107
=========== ============ =========== ============ =========== =============
$284,239,484 $194,522,434 $ 344,499,671
$ 75,842,886 $ 64,847,992 $ 108,275,336
(4,536,848) (3,830,962) (7,560,517)
------------ ------------ -------------
$ 71,306,038 $ 61,017,030 $ 100,714,819
============ ============ =============
</TABLE>
113
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Master Master
Portfolio Portfolio
- ----------------------------------------------------------------------------
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see cost below)
(Note 1) $ 126,687,879 $ 226,161,394
Cash 595 405
RECEIVABLES:
Investments sold 5,621,666 5,515,149
Dividends and interest 892,217 1,453,657
TOTAL ASSETS 133,202,357 233,130,605
LIABILITIES
PAYABLES:
Investments securities purchased 5,062,626 3,543,357
Collateral for securities loaned (Note 4) 11,843,608 21,156,344
Due to BGI (Note 2) 97,122 213,205
TOTAL LIABILITIES 17,003,356 24,912,906
TOTAL NET ASSETS $ 116,199,001 $ 208,217,699
INVESTMENTS AT COST $ 119,143,895 $ 194,952,169
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
114
<PAGE>
STATEMENT OF ASSETS & LIABILITIES--FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Master Master Master
Portfolio Portfolio Portfolio
- ---------------------------------------------------------
<S> <C> <C>
$ 355,545,522 $ 255,539,464 $ 445,214,490
0 63 4,698
4,510,212 7,320 12,800
1,463,402 574,976 551,701
361,519,136 256,121,823 445,783,689
4,558,381 1,012,287 2,000,588
30,365,516 21,263,638 38,649,215
324,477 235,525 404,779
35,248,374 22,511,450 41,054,582
$ 326,270,762 $ 233,610,373 $ 404,729,107
$ 284,106,477 $ 194,461,098 $ 344,117,349
- ---------------------------------------------------------
</TABLE>
115
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath
2000 2010
Fund Fund
Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 470,531 $ 1,547,164
Interest+ 5,511,578 5,932,067
TOTAL INVESTMENT INCOME 5,982,109 7,479,231
EXPENSES (NOTE 2)
Advisory Fees 656,142 1,018,984
TOTAL EXPENSES 656,142 1,018,984
NET INVESTMENT INCOME 5,325,967 6,460,247
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain (loss) on sale of
investments 5,800,419 9,734,287
Net realized gain (loss) on sale of futures
contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 3,089,773 16,696,571
Net change in unrealized appreciation
(depreciation) in financial futures
contracts 0 0
NET GAIN (LOSS) ON INVESTMENTS 8,890,192 26,430,858
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $14,216,159 $32,891,105
- ------------------------------------------------------------------------------
+ Interest income includes security lending
income of: $ 23,958 $ 48,999
</TABLE>
The accompanying notes are an integral part of these financial statements.
116
<PAGE>
STATEMENT OF OPERATIONS--FOR THE YEAR ENDED FEBRUARY 28, 1998
<TABLE>
<CAPTION>
LifePath LifePath LifePath
2020 2030 2040
Fund Fund Fund
Master Portfolio Master Portfolio Master Portfolio
- ------------------------------------------------------------------------------------------
<S> <C> <C>
$ 3,350,517 $ 2,688,191 $ 5,125,909
5,902,764 2,426,345 1,316,791
9,253,281 5,114,536 6,442,700
1,572,634 1,048,151 1,767,632
1,572,634 1,048,151 1,767,632
7,680,647 4,066,385 4,675,068
16,445,704 9,255,193 26,380,392
0 0 14,539
39,706,672 35,383,133 58,037,494
0 0 (52,500)
56,152,376 44,638,326 84,379,925
$63,833,023 $ 48,704,711 $ 89,054,993
- -------------------------------------------------------------------------------------------
$ 79,526 $ 61,182 $ 114,518
</TABLE>
117
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2000 Master Portfolio
------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 5,325,967 $ 5,769,457
Net realized gain (loss) on sale of
investments 5,800,419 2,894,777
Net change in unrealized appreciation
(depreciation) of investments 3,089,773 (273,099)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 14,216,159 8,391,135
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTEREST
TRANSACTIONS (29,290,156) 6,204,037
INCREASE (DECREASE) IN NET ASSETS (15,073,997) 14,595,172
NET ASSETS:
Beginning net assets 131,272,998 116,677,826
ENDING NET ASSETS $ 116,199,001 $ 131,272,998
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
118
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2010 Master Portfolio LifePath 2020 Master Portfolio
- ------------------------------------- --------------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
February 28, 1998 February 28, 1997 February 28, 1998 February 28, 1997
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
$ 6,460,247 $ 5,182,306 $ 7,680,647 $ 6,271,633
9,734,287 3,439,818 16,445,704 9,487,619
16,696,571 5,149,907 39,706,672 11,374,656
32,891,105 13,772,031 63,833,023 $ 27,133,908
5,815,674 54,517,689 10,995,106 61,750,732
38,706,779 68,289,720 74,828,129 88,884,640
169,510,920 101,221,200 251,442,633 162,557,993
$ 208,217,699 $ 169,510,920 $ 326,270,762 $ 251,442,633
- ------------------------------------------------------------------------------
</TABLE>
119
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2030 Master Portfolio
-----------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ----------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
Net investment income $ 4,066,385 $ 3,210,760
Net realized gain (loss) on investments 9,255,193 5,108,662
Net realized gain (loss) on sale of
futures contracts 0 0
Net change in unrealized appreciation
(depreciation) of investments 35,383,133 10,036,726
Net change in unrealized appreciation
(depreciation) of futures contracts 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 48,704,711 18,356,148
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM BENEFICIAL INTEREST
TRANSACTIONS 26,100,829 32,210,346
NET INCREASE (DECREASE) IN NET ASSETS 74,805,540 50,566,494
NET ASSETS:
Beginning net assets 158,804,833 108,238,339
ENDING NET ASSETS $ 233,610,373 $ 158,804,833
- ----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
120
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LifePath 2040 Master Portfolio
- ------------------------------------------------------------------------------
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- ------------------------------------------------------------------------------
<S> <C>
$ 4,675,068 $ 3,953,444
26,394,931 14,697,190
0 35,620
58,037,494 17,501,172
(52,500) 92,625
89,054,993 36,280,051
57,589,386 45,783,771
146,644,379 82,063,822
258,084,728 176,020,906
$ 404,729,107 $ 258,084,728
- ------------------------------------------------------------------------------
</TABLE>
121
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
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 and money
mar-
122
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
ket instruments maturing in 60 days or less are valued at amortized cost, which
approximates market value. Any securities, restricted securities or other as-
sets 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 and sell a security at a set price on a future date and is exchange traded.
Upon entering into a futures contract, the LifePath 2000, LifePath 2010,
LifePath 2020, LifePath 2030, and LifePath 2040 Master Portfolios are required
to pledge to the broker an amount of cash, U.S. Government securities or other
high- quality debt securities equal to the minimum "initial margin" require-
ments of the exchange. Pursuant to the contract, the Master Portfolios
123
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
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 February 28,
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 February 28, 1998, the Master Portfolios are
collateralized by U.S. Government Securities.
124
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
2. AGREEMENTS AND OTHER TRANSACTION WITH AFFILIATES
Pursuant to an Investment Advisory Contract with each Master Portfolio,
Barclays Global Fund Advisors ("BGFA") provides investment guidance and policy
direction in connection with the management of each Master Portfolio's assets.
BGFA is entitled to receive 0.55% of the average daily net assets of the
LifePath Master Portfolios as compensation for its advisory services to such
Master Portfolios. BGFA is an indirect subsidiary of Barclays Bank PLC.
Investors Bank & Trust Company ("IBT") serves as the custodian to each Master
Portfolio. IBT will not be entitled to receive fees for its custodial services
so long as it is entitled to receive a separate fee from Barclays Global In-
vestors, N.A. ("BGI") for its services as Sub-Administrator of each Master
Portfolio.
ORGANIZATION EXPENSES
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
February 28, 1998, these officers of Stephens indirectly collectively owned
less than 1% of the Master Portfolios' outstanding shares of beneficial inter-
ests.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities, for
each Master Portfolio for the year ended February 28, 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 $ 33,291,178 $ 59,036,500 $ 65,715,647 $ 20,937,159 $ 11,739,298
Sales proceeds 73,454,422 60,420,339 77,806,490 31,317,960 38,650,344
Other Securities:
- -----------------------------------------------------------------------------------
Purchases at cost 8,626,001 20,691,293 54,233,382 57,725,629 162,678,573
Sales proceeds 15,515,149 21,511,480 35,040,932 19,494,251 69,544,105
</TABLE>
125
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
4. PORTFOLIO SECURITIES LOANED
As of February 28, 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 $11,562,364 $11,843,608
LifePath 2010 Master Portfolio $20,634,239 $21,156,344
LifePath 2020 Master Portfolio $29,448,469 $30,365,516
LifePath 2030 Master Portfolio $20,581,637 $21,263,638
LifePath 2040 Master Portfolio $37,418,496 $38,649,215
</TABLE>
126
<PAGE>
MASTER INVESTMENT PORTFOLIO
NOTES TO THE FINANCIAL STATEMENTS
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 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>
The average commission rates paid by the Master Portfolios are as follows:
<TABLE>
<CAPTION>
For the For the
Year Ended Year Ended
February 28, 1998 February 28, 1997
- -------------------------------------------------------------------
<S> <C> <C>
LifePath 2000 Master Portfolio $0.0300 $0.0401
LifePath 2010 Master Portfolio $0.0304 $0.0404
LifePath 2020 Master Portfolio $0.0300 $0.0451
LifePath 2030 Master Portfolio $0.0302 $0.0364
LifePath 2040 Master Portfolio $0.0248 $0.0351
</TABLE>
127
<PAGE>
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
MASTER INVESTMENT PORTFOLIO:
We have audited the accompanying statements of assets and liabilities, includ-
ing the portfolios of investments of LifePath 2000 Master Portfolio, LifePath
2010 Master Portfolio, LifePath 2020 Master Portfolio, LifePath 2030 Master
Portfolio and LifePath 2040 Master Portfolio (five of the portfolios comprising
Master Investment Portfolio) as of February 28, 1998, and the related state-
ments of operations for the year then ended, the statements of changes in net
assets for each of the years in the two-year period then ended, and the finan-
cial highlights for each of the years in the three-year period then ended.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. All periods
indicated in Note 5 ending prior to March 1, 1995, were audited by other audi-
tors whose report dated April 20, 1995, expressed an unqualified opinion on
this information.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of Feb-
ruary 28, 1998 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement pre-
sentation. We believe that our audits provide a reasonable basis for our opin-
ion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned master portfolios of Master Investment Portfolio as of
February 28, 1998, the results of their operations, the changes in their net
assets and their financial highlights for the periods indicated herein, except
as noted above, in conformity with generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
San Francisco, California
April 3, 1998
128
<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
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