KIEWIT MUTUAL FUND
Money Market Portfolio
Short-Term Government Portfolio
Intermediate-Term Bond Portfolio
Tax-Exempt Portfolio
Equity Portfolio
KIEWIT
KMF
MUTUAL FUND
SEMIANNUAL REPORT
DECEMBER 31, 1995
KIEWIT
KMF
MUTUAL FUND
Dear Shareholder:
The management of Kiewit Mutual Fund is pleased to present its semiannual
report covering the period from July 1, 1995 through December 31, 1995.
Investment Results*
The Money Market Portfolio's total return for the six-month period was
2.90%. That return consisted of income distributions (dividends) of $0.029 per
share. The Portfolio's return compares favorably with the 2.72% total
return reported for Donoghue's Money Market Fund Average over the same period.
The Short-Term Government Portfolio's total return for the six-month period
was 3.64%. That return consisted of an increase in net assets value of $0.01
per share (increasing from $2.03 to $2.04) and income distributions (dividends)
of $0.063 per share. The Portfolio's return falls somewhat short of the 3.98%
total return reported for the unmanaged Lehman 1-3 Year Government Index over
the same period. The Lehman 1-3 Year Government Index is a total return
performance benchmark consisting of U.S. Government agency and Treasury
securities with maturities from one to three years.
The Intermediate-Term Bond Portfolio's total return for the six-month
period was 5.80%. That return consisted of an increase in net asset value of
$0.05 per share (increasing from $2.05 to $2.10) and income distributions
(dividends) of $0.067 per share. The Portfolio's return falls short of the
6.32% total return reported for the unmanaged Lehman Intermediate Corporate
Index over the same period. The Lehman Intermediate Corporate Index is a total
return performance benchmark consisting of publicly issued corporate debt issues
rated at least investment grade with maturities from one to ten years.
The Tax-Exempt Portfolio's total return for the six-month period was
4.82%. That return consisted of an increase in net asset value per share of
$0.05 (increasing from $2.02 to $2.07) and income distributions (dividends) of
$0.046 per share. The Portfolio's return compares favorably with the 4.50%
total return reported for the unmanaged Lehman 5-Year Municipal Bond Index.
The Lehman 5-Year Municipal Bond Index is a total return performance benchmark
consisting of tax-exempt municipal bonds rated at least investment grade with
maturities from four to six years.
The Equity Portfolio's total return for the six-month period was 11.62%.
That return consisted of an increase in net asset value per share of $1.48
(increasing from $14.04 to $15.52) and income distributions (dividends) of $0.15
per share. The Portfolio's return falls short of the 14.45% total return
reported for the unmanaged Standard & Poor's 500 Index (the "S&P 500").
The S&P 500 is an unmanaged capitalization weighted index of five hundred
publicly traded stocks.
*Past performance is not necessarily predictive of future results. There can be
no assurance that the Money Market Portfolio will be able to maintain a stable
net asset value of $1.00. An investment in the Money Market Portfolio is
neither insured nor guaranteed by the U.S. Government. The returns shown above
are higher due to the Adviser's maintenance of the Portfolio's expenses. See
Financial Highlights on pages 9, 15, 22, 31 and 37.
Please note that the Lehman indices and the S&P 500 are unmanaged
statistical compilations, and unlike the Kiewit Portfolios have no associated
expenses.
Market Review and Preview
What a year! Investors in both the fixed income and equity markets enjoyed
total returns of historical proportions in 1995 as the Federal Reserve Board
(the "Fed") managed to do the impossible by engineering a "soft landing" for
the
economy. 1995 also marked the first time that the assets of Kiewit Mutual Fund
surpassed the $1 billion mark.
Coming on the heels of 1994's "worst performance ever" for the bond market,
few if any participants anticipated 1995's strong performance - the third best
total return in recorded history. Investors viewed continued low inflation and
weak economic growth as signs that the Fed would be forced, sooner rather than
later, to lower interest rates to prevent the economy from slipping into a
recession. Although the yields on very short securities (which are largely a
function of the Fed's monetary policy) ended the year back where they began, the
yields on longer securities (which are largely a function of investors'
expectations of future interest rates) dropped significantly with the yield on
the 30-year Treasury Bond dropping from 7.87% at the end of 1994 to 5.95% at the
end of 1995. Although tax-free issues had limited price appreciation compared
to taxable issues because of uncertainty regarding potential tax reform, they
did manage to turn in their best performance since 1986.
Lower interest rates and better than expected corporate earnings helped
propel the equity market, as measured by the S&P 500, to a total return (price
appreciation plus dividends) of 37.6% for the year - about four times the
average return of the last 70 years. Bank and technology stocks were the
market leaders for the year.
Although it was an excellent year for those who were already in the market,
those hoping for a correction to make prices more attractive were frustrated as
the market continually moved higher. The S&P 500 set 77 new highs during the
year, while the period from October 1990 through the end of 1995 now ranks as
the longest period in stock market history without a 10% correction. At Kiewit
Mutual Fund, we shared that frustration as we tried to invest the cash in our
start-up Kiewit Equity Portfolio. Although the Portfolio earned a good return
for the year, the relatively large amount of cash held its performance to less
than that of the S&P 500.
History suggests that the returns of 1996 will not approach those of 1995.
Instead, we look for returns in the high single digits. Low inflation, modest
growth in corporate earnings, a strong dollar, and the Presidential election
should serve as supporting factors for the markets in the year ahead.
Regardless of the direction of the markets during 1996, shareholders of
each Kiewit Portfolio can be assured that the goal of the Fund's investment
adviser continues to be the delivery of consistent, reasonable returns that
enable our shareholders to realize the potential for long-term, superior
performance with less volatility than they may experience in similar
investments.
Sincerely,
Ann C. McCulloch
President
February , 1996
Kiewit Mutual Fund/Money Market Portfolio
- -----------------------------------------
Investments/December 31, 1995 (Unaudited)
(Showing Percentage of Total Value of Net Assets)
- -----------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
----------- --------- --------
Certificates of Deposit - 4.7%
Bank of Nova Scotia, Portland Branch, P-1/A-1+ $ 15,000,000 $ 15,000,066
5.76%, 01/09/96
Commerzbank AG, 5.80%, 01/08/96 P-1/A-1+ 10,000,000 10,000,058
------------
TOTAL CERTIFICATES OF DEPOSIT (COST $25,000,124) 25,000,124
------------
Commercial Paper - 65.8%
Automobiles - 3.2%
Daimler-Benz North America Corp., P-1/A-1 12,000,000 11,978,990
5.796%, 01/12/96
Daimler-Benz North America Corp., P-1/A-1+ 5,000,000 4,967,272
5.678%, 02/13/96 ------------
16,946,262
------------
Banks - 6.0%
CS First Boston Group, Inc., 5.80%, P-1/A-1 17,000,000 16,959,413
01/16/96
Suntrust Banks, Inc., 5.789%, 01/25/96 P-1/A-1 15,000,000 14,943,200
------------
31,902,613
------------
Business Services - 7.1%
Hertz Corp., 5.771%, 02/05/96 P-1/A-1 18,000,000 17,900,425
PHH Corp., 5.762%, 01/22/96 P-1/A-1 15,000,000 14,950,300
PHH Corp., 5.581%, 02/20/96 P-1/A-1 5,000,000 4,961,597
------------
37,812,322
------------
Chemicals - 3.4%
E.I. Du Pont De Nemours, 5.72%, P-1/A-1+ 18,000,000 17,991,420
01/04/96 ------------
Computers - 1.8%
Electronic Data Systems Corp., 5.643%, P-1/A-1 10,000,000 9,900,978
03/05/96 ------------
Finance - 6.1%
Ford Motor Credit Corp., 5.70%, P-1/A-1 15,000,000 14,973,875
01/12/96
International Lease Finance Corp., P-1/A-1 8,000,000 7,988,600
5.745%, 01/10/96
International Lease Finance Corp., P-1/A-1 10,000,000 9,912,111
5.744%, 02/26/96 ------------
32,874,586
------------
Finance Services - 4.2%
General Electric Capital Corp., 5.796% P-1/A-1+ 8,000,000 7,924,533
03/01/96
General Electric Capital Corp., 5.803% P-1/A-1+ 8,000,000 7,889,707
03/29/96
Nordstrom Credit, Inc., 5.718%, P-1/A-1 6,566,000 6,556,643
01/10/95 ------------
22,370,883
------------
Food & Beverages - 10.0%
Hershey Foods, 5.604%, 01/30/96 P-1/A-1+ 18,000,000 17,919,235
McCormick & Co., Inc., 5.69%, 02/26/96 P-1/A-1 9,000,000 8,923,280
McCormick & Co., Inc., 5.782%, P-1/A-1 7,000,000 6,914,612
03/19/96
PepsiCo., Inc., 5.801%, 01/17/96 P-1/A-1 15,000,000 14,962,000
PepsiCo., Inc., 5.586%, 02/02/96 P-1/A-1 5,000,000 4,975,333
------------
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Money Market Portfolio
- -----------------------------------------
Investments (Unaudited) - continued
- -------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
----------- --------- --------
53,694,460
------------
Hardware & Tools - 3.2%
Stanley Works, 5.744%, 01/25/96 P-1/A-1 $ 12,275,000 $ 12,228,437
Stanley Works, 5.738%, 02/02/96 P-1/A-1 5,000,000 4,974,756
------------
17,203,193
------------
Manufacturing - 3.3%
Siemens Corp., 5.775%, 01/31/96 P-1/A-1+ 18,000,000 17,913,375
------------
Mortgage Lending - 2.8%
Fleetwood Credit Corp., 5.822%, P-1/A-1 10,000,000 9,971,250
01/19/96
Fleetwood Credit Corp., 5.825%, P-1/A-1 5,000,000 4,985,575
01/19/96 ------------
14,956,825
------------
Natural Gas - 3.7%
Consolidated Natural Gas, 5.637%, P-1/A-1+ 10,000,000 9,942,444
02/07/96
Consolidated Natural Gas, 5.702% P-1/A-1+ 9,990,000 9,921,013
02/14/96 ------------
19,863,457
------------
Office Equipment - 3.1%
Hewlett Packard Co., 5.68%, 02/29/96 P-1/A-1+ 17,000,000 16,843,978
------------
Pharmaceuticals Preparations - 3.2%
Sandoz Corp., 5.769%, 01/08/96 P-1/A-1+ 10,000,000 9,988,917
Sandoz Corp., 5.785%, 01/25/96 P-1/A-1+ 7,000,000 6,973,400
------------
16,962,317
------------
Retail Merchandising - 1.9%
Penney (J.C.) Funding Corp., 5.728% P-1/A-1 10,000,000 9,938,792
02/09/96 ------------
Utilities - 2.8%
AT&T Corp., 5.767%, 01/29/96 P-1/A-1+ 15,000,000 14,933,733
------------
TOTAL COMMERCIAL PAPER (COST $352,109,194) 352,109,194
------------
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Money Market Portfolio
- -----------------------------------------
Investments (Unaudited) - continued
- -------------------------------------------------------------------------------
Value
(Note 2)
--------
Repurchase Agreements - 29.8%
With CS First Boston Group, Inc.: at 6.00%, dated 12/29/95,
to be repurchased at $19,761,165 on 01/02/96, collateralized
by Federal National Mortgage Association Adjustable Rate
Mortgage Pass-Through Securities, 6.38%, due 01/01/34 (market
value, $20,251,342)
(Cost $19,748,000) $ 19,748,000
With Merrill Lynch & Co., Inc.: at 6.00%, dated 12/29/95, to
be repurchased at $50,033,333 on 01/02/96, collateralized by
Federal National Mortgage Association Pass-Through Securities,
6.00%, due 01/01/01 (market value, $753,473), Federal Home
Loan Mortgage Corporation Pass-Through Securities due 06/01/01
(market value $8,446,289), Federal Home Loan Mortgage
Corporation Adjustable Rate Mortgage Pass-Through Securities
with various coupons and maturities to 07/01/25 (market value,
$16,680,880), and Federal National Mortgage Association
Adjustable Rate Mortgage Pass-Through Securities with various
coupons and maturities to 11/01/25 (market value $25,263,773)
(Cost $50,000,000) 50,000,000
With Paine Webber, Inc.: at 6.22%, dated 12/29/95, to be
repurchased at $90,062,200 on 01/02/96, collateralized by
Federal Home Loan Mortgage Corporation Adjustable Rate
Mortgage Pass-Through Securities with various coupons and
maturities to 09/01/24 (market value, $29,392,627), and
Federal National Mortgage Association Adjustable Rate
Mortgage Pass-Through Securities with various coupons and
maturities to 12/01/25 (market value $62,407,536)
(Cost $90,000,000) 90,000,000
------------
TOTAL REPURCHASE AGREEMENTS (COST $159,748,000) 159,748,000
------------
TOTAL INVESTMENTS (COST $536,857,318)+ - 100.3% 536,857,318
OTHER ASSETS AND LIABILITIES, NET - (0.3)% (1,865,466)
------------
NET ASSETS - 100.0% $534,991,852
============
+ Cost for federal income tax and financial reporting purposes.
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/MONEY MARKET PORTFOLIO
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995 (Unaudited)
Assets:
Investments in securities (including repurchase
agreements of $159,748,000), at value (amortized
cost $536,857,318) (Note 2) $536,857,318
Cash 942
Interest receivable 316,991
Other assets 1,687
Unamortized organization costs (Note 2) 24,903
------------
Total assets 537,201,841
Liabilities:
Dividends payable $ 2,171,802
Accrued expenses (Note 4) 38,187
-----------
Total liabilities 2,209,989
------------
Net Assets $534,991,852
============
Net Assets consist of:
Shares of beneficial interest $ 5,349,927
Additional paid-in capital 529,642,816
Accumulated net realized loss on investments (891)
------------
Net Assets, for 534,992,743 shares outstanding $534,991,852
============
Net Asset Value, offering and redemption price per
share ($534,991,852 divided by 534,992,743
outstanding shares of beneficial interest, $0.01
par value) $1.00
=====
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS - continued
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Six-Month Period Ended December 31, 1995 (Unaudited)
Interest income $ 11,696,309
Expenses:
Management fee (reflects $120,483 waiver) $ 275,246
(Note 4)
Administration fee (Note 4) 25,136
Accounting fee (Note 4) 37,577
Transfer Agent fee (Note 4) 10,211
Custodian fee (Note 4) 20,237
Trustees' fees and expenses (Note 4) 2,463
Amortization of organizational expenses (Note 2) 3,435
Legal 1,368
Audit 4,926
Other 15,141
----------
Total expenses, net 395,740
-----------
Net investment income 11,300,569
-----------
Net increase in net assets resulting from operations $11,300,569
===========
The accompanying notes are an integral part of the financial statement.
KIEWIT MUTUAL FUND/MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS - continued
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Period
July 28, 1994
For the Six-Month (Commencement of
Period Ended Operations)
December 31, 1995 through
(Unaudited) June 30, 1995
----------------- ----------------
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 11,300,569 $ 10,416,304
Net realized loss on investments 0 (891)
-------------- --------------
Net increase in net assets resulting 11,300,569 10,415,413
from operations -------------- --------------
Distributions to shareholders from net
investment income ($0.029 and $0.049 per
share, respectively) (11,300,569) (10,416,304)
-------------- --------------
Share transactions at net asset value of
$1.00 per share:
Proceeds from sale of shares 1,462,524,063 1,333,908,405
Shares issued to shareholders in
reinvestment of dividends from net
investment income 10,676,489 8,841,448
Cost of shares redeemed (1,318,916,645) (962,141,017)
-------------- --------------
Net increase in net assets and shares
resulting from share transactions 154,283,907 380,608,836
-------------- --------------
Total increase in net assets 154,283,907 380,607,945
Net Assets:
Beginning of period 380,707,945 100,000
-------------- --------------
End of period $ 534,991,852 $ 380,707,945
============== ==============
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements and
notes thereto.
For the Period
July 28, 1994
For the Six-Month (Commencement of
Period Ended Operations)
December 31, 1995 through
(Unaudited) June 30, 1995
----------------- ----------------
Net Asset Value - Beginning of Period $ 1.00 $ 1.00
---------- ---------
Investment Operations:
Net investment income 0.03 0.05
---------- ---------
Distributions:
From net investment income (0.03) (0.05)
---------- ---------
Net Asset Value - End of Period $ 1.00 $ 1.00
========== =========
Total Return** 2.90% 5.04%
Ratios (to average net assets)/Supplemental Data:
Expenses+ 0.20%* 0.30%*
Net investment income 5.71%* 5.51%*
Net assets at end of period ($000 omitted) 534,992 380,708
- -----------------------
* Annualized
** The total return for each period has not been annualized.
+ Since inception, Kiewit Investment Management Corp. (the "Manager") agreed
to waive all or a portion of its fee. For the period from December 7, 1994
through June 30, 1995, the Manager further agreed to waive all or a portion
of its fee in an amount that will limit annual operating expenses to not
more than 0.30% of the average daily net assets of the Portfolio.
Effective July1, 1995 through June 30, 1996, the Manager agreed to waive
all or a portion of its fee in an amount that will limit annual operating
expenses to not more than 0.20% of the average daily net assets of the
Portfolio. The annualized expense ratio, had there been no fee waivers by
the Manager, would have been 0.26% and 0.34% for the six-month period ended
December 31, 1995, and for the period ended June 30, 1995, respectively.
Kiewit Mutual Fund/Short-Term Government Portfolio
- --------------------------------------------------
Investments/December 31, 1995 (Unaudited)
(Showing Percentage of Total Value of Net Assets)
- --------------------------------------------------------------------------------
Principal Value
Amount (Note 2)
--------- --------
U.S. Government Agency Obligations - 61.5%
Federal Farm Credit Banks Notes - 5.0%
Federal Farm Credit Banks, 7.32%, 03/27/98 $ 2,000,000 $ 2,008,220
Federal Farm Credit Banks, 7.26%, 08/28/00 5,875,000 5,887,925
-----------
7,896,145
-----------
Federal Home Loan Banks Notes - 12.9%
Federal Home Loan Banks, 5.545%, 06/09/97 5,000,000 5,017,849
Federal Home Loan Banks, 5.215%, 07/08/98 5,000,000 4,963,400
Federal Home Loan Banks, 6.05%, 03/01/99 5,100,000 5,135,241
Federal Home Loan Banks, 7.01%, 07/05/00 5,000,000 5,000,000
-----------
20,116,490
-----------
Federal Home Loan Mortgage Corp. Notes - 14.7%
Federal Home Loan Mortgage Corp., 7.86%, 01/21/97 5,000,000 5,128,600
Federal Home Loan Mortgage Corp., 6.33%, 10/07/97 3,000,000 3,002,430
Federal Home Loan Mortgage Corp., 8.20%, 01/16/98 3,000,000 3,087,150
Federal Home Loan Mortgage Corp., 5.825%, 08/11/98 4,195,000 4,223,357
Federal Home Loan Mortgage Corp., 6.28%, 10/02/98 1,000,000 1,003,500
Federal Home Loan Mortgage Corp., 5.37%, 12/07/98 4,500,000 4,467,375
Federal Home Loan Mortgage Corp., 7.84%, 04/26/00 2,000,000 2,012,040
----------
22,924,452
----------
Federal National Mortgage Association Notes - 23.1%
Federal National Mortgage Assoc., 6.84%, 10/03/97 5,000,000 5,121,650
Federal National Mortgage Assoc., 5.20%, 07/10/98 10,310,000 10,223,601
Federal National Mortgage Assoc., 5.77%, 08/25/98 2,900,000 2,915,950
Federal National Mortgage Assoc., 4.875%, 10/15/98 2,850,000 2,803,602
Federal National Mortgage Assoc., 4.75%, 10/26/98 3,620,000 3,543,292
Federal National Mortgage Assoc., 4.94%, 10/30/98 5,000,000 4,918,199
Federal National Mortgage Assoc., 7.46%, 09/27/99 5,000,000 5,058,300
Federal National Mortgage Assoc., 6.37%, 07/27/00 1,500,000 1,521,720
----------
36,106,314
----------
Student Loan Marketing Association Notes - 2.6%
Student Loan Marketing Assoc., 6.97%, 08/23/00 4,000,000 4,031,640
----------
Tennessee Valley Authority Notes - 3.2%
Tennessee Valley Auth. Global Pwr., Ser. D., 6.00%, 5,000,000 5,075,000
11/01/00 ----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST 96,150,041
$93,911,713) ----------
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Short-Term Government Portfolio
- --------------------------------------------------
Investments (Unaudited) - continued
- --------------------------------------------------------------------------------
Principal Value
Amount (Note 2)
--------- --------
U.S. Treasury Notes - 35.2%
U.S. Treasury Notes, 7.625%, 04/30/96 $ 5,000,000 $ 5,039,950
U.S. Treasury Notes, 6.25%, 08/31/96 10,000,000 10,058,899
U.S. Treasury Notes, 7.25%, 11/30/96 7,000,000 7,121,870
U.S. Treasury Notes, 6.125%, 05/31/97 15,000,000 15,185,848
U.S. Treasury Notes, 5.875%, 07/31/97 10,000,000 10,102,099
U.S. Treasury Notes, 7.25%, 02/15/98 2,000,000 2,081,100
U.S. Treasury Notes, 7.75%, 01/31/00 5,000,000 5,433,100
------------
TOTAL U.S. TREASURY NOTES (COST $54,442,807) 55,022,866
------------
Repurchase Agreements - 2.1%
With CS First Boston Group, Inc.: at 6.00%, dated
12/29/95, to be repurchased at $3,341,226 on
01/02/96, collateralized by Federal Home Loan
Mortgage Corporation Pass-Through Securities with
various coupons and maturities to 10/01/20
(market value $154,777), Federal National
Mortgage Association Adjustable Rate Mortgage
Pass-Through Securities, 6.38%, due 11/01/23
(market value $1,116,212) and Federal National
Mortgage Association Pass-Through Securities with
various coupons and maturities to 01/01/25 (market
value $2,146,093) (COST $3,339,000) 3,339,000
------------
TOTAL INVESTMENTS (COST $151,693,520)+ - 98.8% 154,511,907
OTHER ASSETS AND LIABILITIES, NET - 1.2% 1,927,114
------------
NET ASSETS - 100.0% $156,439,021
============
+ Cost for federal income tax and financial reporting purposes.
At December 31, 1995, net unrealized appreciation was $2,818,387.
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/SHORT-TERM GOVERNMENT PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995 (Unaudited)
Assets:
Investments in securities (including repurchase
agreement of $3,339,000), at value (cost
$151,693,520) (Note 2) $ 154,511,907
Cash 821
Interest receivable 2,750,682
Unamortized organization costs (Note 2) 24,921
Other assets 663
-------------
Total assets 157,288,994
Liabilities:
Dividends payable $ 821,356
Accrued expenses (Note 4) 28,617
-----------
Total liabilities 849,973
-------------
Net Assets $ 156,439,021
=============
Net Assets consist of:
Shares of beneficial interest $ 766,758
Additional paid-in capital 153,154,361
Accumulated net realized loss on investments (300,485)
Net unrealized appreciation of investments 2,818,387
------------
Net Assets, for 76,675,835 shares outstanding $ 156,439,021
=============
Net Asset Value, offering and redemption price
per share ($156,439,021 divided by 76,675,835
outstanding shares of beneficial interest, $0.01
par value) $2.04
=====
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/SHORT-TERM GOVERNMENT PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS - continued
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
for the Six-Month Period Ended December 31, 1995 (Unaudited)
Interest income $ 5,025,175
Expenses:
Management fee (reflects $90,588 waiver) (Note 4) $ 142,832
Administration fee (Note 4) 25,136
Accounting fee (Note 4) 26,981
Transfer Agent fee (Note 4) 10,211
Custodian fee (Note 4) 8,249
Trustees' fees and expenses (Note 4) 2,463
Amortization of organizational expenses (Note 2) 3,435
Legal 1,444
Audit 4,925
Other 7,754
----------
Total expenses, net 233,430
-------------
Net investment income 4,791,745
-------------
Realized and unrealized gain on investments:
Net realized gain on investment transactions 126,392
Net unrealized appreciation of investments during the 1,024,803
period -------------
Net gain on investments 1,151,195
-------------
Net increase in net assets resulting from operations $ 5,942,940
=============
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/SHORT-TERM GOVERNMENT PORTFOLIO
- ------------------------------------------------------------------------------
FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Period
For the Six-Month July 29, 1994
Period Ended (Commencement
December 31, 1995 of Operations)
(Unaudited) through
June 30, 1995
----------------- --------------
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 4,791,745 $ 6,378,385
Net realized gain (loss) on investment
transactions 126,392 (426,877)
Net unrealized appreciation of investments
during the period 1,024,803 1,793,584
-------------- -------------
Net increase in net assets resulting
from operations 5,942,940 7,745,092
------------- -------------
Distributions to shareholders from net
investment income
($0.063 and $0.106 per share, respectively) (4,791,745) (6,378,385)
------------- -------------
Fund Share Transactions (a):
Receipt from shares sold 39,497,221 255,654,892
Receipt from shares issued on reinvestment
of distributions 4,554,146 5,738,895
Shares redeemed (21,591,106) (129,932,929)
------------- ------------
Net increase in net assets from Fund share
transactions 22,460,261 131,460,858
------------- ------------
Total increase in net assets 23,611,456 132,827,565
Net Assets:
Beginning of period 132,827,565 0
------------- ------------
End of period $ 156,439,021 $ 132,827,565
============= =============
(a)Transactions in capital stock were:
Shares sold 19,502,084 127,758,308
Shares issued on reinvestment of 2,243,287 2,874,102
distributions
Shares redeemed (10,631,648) (65,070,298)
------------- ------------
Net increase in shares 11,113,723 65,562,112
Shares outstanding-Beginning balance 65,562,112 0
------------- ------------
Shares outstanding-Ending balance 76,675,835 65,562,112
============= =============
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/SHORT-TERM GOVERNMENT PORTFOLIO
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements and
notes thereto.
For the Period
For the Six-Month July 29, 1994
Period Ended (Commencement
December 31, 1995 of Operations)
(Unaudited) through
June 30, 1995
----------------- --------------
Net Asset Value - Beginning of Period $2.03 $2.00
----- -----
Investment Operations:
Net investment income 0.06 0.11
Net realized and unrealized gain on 0.01 0.03
investments ---- ----
Total from investment operations 0.07 0.14
---- ----
Distributions:
From net investment income (0.06) (0.11)
---- ----
Net Asset Value - End of Period $2.04 $2.03
===== =====
Total Return** 3.64% 7.00%
Ratios (to average net assets)/Supplemental Data:
Expenses+ 0.30%* 0.37%*
Net investment income 6.16%* 5.75%*
Portfolio turnover 56.50%* 122.58%*
Net assets at end of period ($000 omitted) 156,439 132,828
* Annualized
** The total return for each period has not been annualized.
+ Since inception, Kiewit Investment Management Corp. (the "Manager") agreed to
waive all or a portion of its fee. For the period from December 7, 1994 through
June 30, 1995, the Manager further agreed to waive all or a portion of its fee
in an amount that will limit annual operating expenses to not more than 0.40% of
the average daily net assets of the Portfolio. Effective July 1, 1995 through
June 30, 1996, the Manager agreed to waive all or a portion of its fee in an
amount that will limit annual operating expenses to not more than 0.30% of the
average daily net assets of the Portfolio. The annualized expense ratio, had
there been no fee waivers by the Manager, would have been 0.42% and 0.45% for
the six-month period ended December 31, 1995, and for the period ended June 30,
1995, respectively.
Kiewit Mutual Fund/Intermediate-Term Bond Portfolio
- ---------------------------------------------------
Investments/December 31, 1995 (Unaudited)
(Showing Percentage of Total Value of Net Assets)
- ------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
___________ _________ ________
Corporate Bonds - 81.1%
Automobile Manufacturing - 3.2%
Chrysler Corp., 10.95%, 08/01/17 A3/A- $2,000,000 $ 2,237,500
Ford Motor Co., 8.875%, 04/01/06 A1/A+ 1,500,000 1,794,375
-----------
4,031,875
-----------
Banks - 9.4%
Abbey National plc, 6.69%, 10/17/05 Aa3/AA- 3,000,000 3,105,000
Security Pacific Corp., 6.00%, 05/01/00 A2/A 1,500,000 1,505,625
Star Bank, N.A., 6.375%, 03/01/04 A3/A- 3,550,000 3,567,750
United Postal Savings Assoc., 9.00%,
07/26/99 Aaa/NR 1,500,000 1,668,750
World Savings and Loan Assoc., 9.90%,
07/01/00 A2/A 2,000,000 2,225,000
-----------
12,072,125
-----------
Consumer Goods - 5.8%
Anheuser-Busch Cos., Inc., 6.90%, A1/AA- 1,580,000 1,627,400
10/01/02
Pepsico, Inc., 7.48%, 04/27/02 A1/A 2,750,000 2,939,063
Seagram, Joseph E. & Sons Inc., 8.375%,
02/15/07 A2/A 2,500,000 2,887,500
-----------
7,453,963
-----------
Financial - 11.6%
Associates Corp. N.A., 6.625%, 06/15/05 Aa3/AA- 3,000,000 3,086,250
British Telecom Finance, 9.625%, 02/15/19 Aaa/AAA 3,000,000 3,382,500
Ford Motor Credit Co., 8.20%, 02/15/02 A1/A+ 1,500,000 1,661,250
General Motors Acceptance Corp., 8.875%,
06/01/10 A3/A- 1,050,000 1,284,937
Household Finance Co., 7.65%, 05/15/07 A2/A 2,000,000 2,212,500
WMC Finance USA, 6.50%, 11/15/03 A2/A 1,000,000 1,010,000
WMC Finance USA, 7.25%, 11/15/13 A2/A 2,000,000 2,122,500
-----------
14,759,937
-----------
Foreign - 4.9%
City of Vienna, 8.00%, 11/14/96 Aaa/NR 885,000 900,488
Kingdom of Sweden, 8.625%, 03/25/16 Aa3/AA+ 2,000,000 2,110,000
Republic of Finland, 9.625%, 04/01/28 Aa2/AA- 3,000,000 3,303,750
-----------
6,314,238
-----------
Industrial & Miscellaneous - 7.9%
Hanson Overseas B.V., 7.375%, 01/15/03 A1/A+ 4,000,000 4,285,000
PHH Group Inc., 8.00%, 01/01/97 A2/A+ 1,450,000 1,488,062
Raytheon Co., 6.50%, 07/15/05 A1/A+ 1,000,000 1,028,750
WMX Technologies, Inc., 6.22%, 04/30/04 A1/A+ 3,000,000 3,304,830
-----------
10,106,642
-----------
Insurance - 3.8%
Cigna Corp., 9.75%, 01/05/98 A2/A 3,000,000 3,217,500
Lincoln National Corp., 7.25%, 05/15/05 A3/A 1,500,000 1,591,875
-----------
4,809,375
-----------
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Intermediate-Term Bond Portfolio
- ---------------------------------------------------
Investments (Unaudited) - continued
- ------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
___________ _________ ________
Manufacturing - 7.6%
Air Products & Chemicals, 8.50%, 04/01/06 A1/A+ $3,000,000 $ 3,453,750
English China Clays Delaware Inc.,
7.375%, 10/01/02 A2/A+ 3,500,000 3,736,250
Hoechst-Celanese Corp., 6.125%, 02/01/04 A2/A+ 2,500,000 2,496,875
-----------
9,686,875
-----------
Merchandising & Retail - 5.2%
Mercantile Stores, Inc., 6.70%, 09/15/02 A1/A+ 4,000,000 4,050,000
The Limited, Inc., 9.125%, 02/01/01 A1/A 2,250,000 2,525,625
-----------
6,575,625
-----------
Security & Commodity Brokers, Dealers - 6.2%
Morgan Stanley Group, Inc., 7.50%, A1/A+ 3,000,000 3,135,000
09/01/99
Salomon, Inc., 6.29%, 12/01/98 Baa1/BBB+ 5,000,000 4,734,000
-----------
7,869,000
-----------
Telephone & Communications - 6.7%
Comsat Corp., 8.50%, 02/02/07 A2/A 3,000,000 3,487,500
GTE Hawaiian Telephone, Inc., 9.00%,
12/01/00 Baa1/BBB+ 5,000,000 5,087,500
-----------
8,575,000
-----------
Transportation - 4.9%
Canadian National Railway Co., 6.625%,
05/15/03 A1/AA- 3,000,000 3,037,500
Union Pacific Corp., 6.12%, 02/01/04 Aa2/AA+ 3,200,000 3,204,000
-----------
6,241,500
-----------
Utilities - 3.9%
Indiana Michigan Power Co., Title XI,
8.05%, 01/15/98 NR/NR 154,000 154,000
Northwestern Public Service, 7.10%,
08/01/05 A2/A 3,000,000 3,191,250
Potomac Electric Power Co., 5.00%,
09/01/02 A2/A- 1,700,000 1,623,500
-----------
4,968,750
-----------
TOTAL CORPORATE BONDS (COST $99,571,775) 103,464,905
-----------
Asset-Backed Securities - 2.0%
Export Funding Trust Ser. 1994A, 7.89%,
02/15/05 (COST $2,387,762) Aaa/AAA 2,375,000 2,566,301
--------
Mortgage-Backed Securities - 7.4%
Federal Home Loan Mortgage Corp., Ser.
124A Plan C REMIC, 8.50%, 03/15/97 NR/NR 2,181,280 2,232,404
Federal Home Loan Mortgage Corp., Ser.
143A Plan C REMIC, 8.50%, 06/15/97 NR/NR 897,401 918,434
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Intermediate-Term Bond Portfolio
- ---------------------------------------------------
Investments (Unaudited) - continued
- ------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
___________ _________ ________
Federal Home Loan Mortgage Corp., Ser.
125A, Plan C REMIC, 8.75%, 03/15/00 NR/NR $ 899,416 $ 931,739
Federal Home Loan Mortgage Corp., Ser.
1342H, 7.50%, 08/15/07 NR/NR 2,000,000 2,137,269
Federal National Mortgage Assoc., Pool
#326277, 7.00%, 05/01/09 NR/NR 1,798,416 1,832,136
Federal National Mortgage Assoc., Pool
#100063, 12.25%, 06/01/15 NR/NR 1,183,403 1,365,351
-----------
TOTAL MORTGAGE-BACKED SECURITIES (COST $9,217,031) 9,417,333
-----------
U.S. Government Agency Obligations - 6.1%
Federal Home Loan Banks, 6.52%, 09/14/98 Aaa/NR 3,000,000 3,004,200
Federal National Mortgage Assoc., 7.27%,
08/24/05 Aaa/NR 2,500,000 2,600,050
Student Loan Marketing Assoc., 7.50%,
03/27/98 Aaa/NR 2,250,000 2,260,507
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $7,752,816) 7,864,757
-----------
U.S. Treasury Notes - 1.3%
U.S. Treasury Notes, 6.50%, 05/15/05
(COST $1,499,809) NR/NR 1,500,000 1,596,300
-----------
Repurchase Agreements - 0.7%
With CS First Boston Group, Inc.: at 6.00%, dated 12/29/95,
to be repurchased at $844,563 on 01/02/96, collateralized by
Federal National Mortgage Association Adjustable Rate Mortgage
Pass-Through Securities, 6.38%, due 01/01/28 (market value
$869,356) (COST $844,000) 844,000
-----------
TOTAL INVESTMENTS (COST $121,273,193)+ - 98.6% 125,753,596
OTHER ASSETS AND LIABILITIES, NET - 1.4% 1,838,698
-----------
NET ASSETS - 100.0% $127,592,294
============
+ Cost for federal income tax and financial reporting purposes. At December 31,
1995, net unrealized appreciation was $4,480,403. This consisted of aggregate
gross unrealized appreciation for all securities in which there was an excess of
market value over cost of $4,720,406 and aggregate gross unrealized depreciation
for all securities in which there was an excess of cost over market value of
$240,003.
NR Not Rated. While not rated by Moody's or S&P, U.S. Government Agency
Obligations and Mortgage Backed Securities are considered to be of the
highest quality, comparable to AAA.
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/INTERMEDIATE-TERM BOND PORTFOLIO
- ------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995 (Unaudited)
Assets:
Investments in securities (including repurchase
agreement of $844,000), at value (cost
$121,273,193) (Note 2) $125,753,596
Cash 520
Receivable for fund shares sold 6,599
Interest receivable 2,403,151
Other receivables 129,234
Other assets 569
Unamortized organization costs (Note 2) 24,847
------------
Total assets 128,318,516
Liabilities:
Dividends payable $ 681,296
Accrued expenses (Note 4) 44,926
----------
Total liabilities 726,222
------------
Net Assets $127,592,294
============
Net Assets consist of:
Shares of beneficial interest $ 607,376
Additional paid-in capital 122,545,532
Accumulated net realized loss on investments (41,017)
Net unrealized appreciation of investments 4,480,403
------------
Net Assets, for 60,737,568 shares outstanding $127,592,294
============
Net Asset Value, offering and redemption price per share
127,592,294 divided by 60,737,568 outstanding shares of
beneficial interest, $0.01 par value $2.10
=====
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/INTERMEDIATE-TERM BOND PORTFOLIO
- ------------------------------------------------------------------------------
FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Six-Month Period Ended December 31, 1995 (Unaudited)
Interest Income $ 4,257,492
Expenses:
Management fee (reflects $30,137 waiver) (Note 4) $ 214,201
Administration fee (Note 4) 25,136
Accounting fee (Note 4) 25,506
Transfer Agent fee (Note 4) 10,211
Custodian fee (Note 4) 7,202
Trustees' fees and expenses (Note 4) 2,463
Amortization of organizational expenses (Note 2) 3,435
Legal 1,444
Audit 4,926
Other 10,914
---------
Total expenses, net 305,438
-----------
Net investment income 3,952,054
-----------
Realized and unrealized gain on investments:
Net realized gain on investment transactions 666,239
Net unrealized appreciation of investments during the period 2,423,223
------------
Net gain on investments 3,089,462
------------
Net increase in net assets resulting from operations $ 7,041,516
============
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/INTERMEDIATE-TERM BOND PORTFOLIO
- ------------------------------------------------------------------------------
FINANCIAL STATEMENTS - Continued
- ------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Period
For the Six-Month July 25, 1994
Period Ended (Commencement
December 31, 1995 of Operations)
(Unaudited) through
June 30, 1995
----------------- -------------
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 3,952,054 $ 6,088,902
Net realized gain (loss) on investment
transactions 666,239 (707,256)
Net unrealized appreciation of investments
during the period 2,423,223 2,057,180
------------ ------------
Net increase in net assets resulting
from operations 7,041,516 7,438,826
------------ ------------
Distributions to shareholders from net
investment income
($0.067 and $0.121 per share, respectively) (3,952,054) (6,088,902)
------------ ------------
Fund Share Transactions (a):
Receipt from shares sold 22,076,801 246,061,746
Receipt from shares issued on reinvestment
of distributions 3,636,786 5,386,685
Shares redeemed (6,231,124) (147,777,986)
------------ ------------
Net increase in net assets from Fund
share transactions 19,482,463 103,670,445
------------ ------------
Total increase in net assets 22,571,925 105,020,369
Net Assets:
Beginning of period 105,020,369 0
------------ ------------
End of period $127,592,294 $105,020,369
============ ============
(a) Transactions in capital stock were:
Shares sold 10,785,336 122,885,850
Shares issued on reinvestment of
distributions 1,767,590 2,700,353
Shares redeemed (3,015,065) (74,386,496)
------------ ------------
Net increase in shares 9,537,861 51,199,707
Shares outstanding - Beginning balance 51,199,707 0
------------ ------------
Shares outstanding - Ending balance 60,737,568 51,199,707
============ ============
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/INTERMEDIATE-TERM BOND PORTFOLIO
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements and
notes thereto.
For the Period
For the Six-Month July 25, 1994
Period Ended (Commencement
December 31, 1995 of Operations)
(Unaudited) through
June 30, 1995
----------------- --------------
Net Asset Value - Beginning of Period $2.05 $2.00
----- -----
Investment Operations:
Net investment income 0.07 0.12
Net realized and unrealized gain on investments 0.05 0.05
---- ----
Total from investment operations 0.12 0.17
---- ----
Distributions:
From net investment income (0.07) (0.12)
---- ----
Net Asset Value - End of Period $2.10 $2.05
===== =====
Total Return** 5.80% 8.88%
Ratios (to average net assets)/Supplemental Data:
Expenses + 0.50%* 0.41%*
Net investment income 6.47%* 6.41%*
Portfolio turnover 55.41%* 128.95%*
Net assets at end of period ($000 omitted) 127,592 105,020
- ------------------
* Annualized
** The total return for each period has not been annualized.
+ Since inception, Kiewit Investment Management Corp. (the "Manager") agreed to
waive all or a portion of its fee. For the period from December 7, 1994 through
June 30, 1995, the Manager further agreed to waive all or a portion of its fee
in an amount that will limit annual operating expenses to not more than 0.40% of
the average daily net assets of the Portfolio. Effective July 1, 1995 through
June 30, 1996, the Manager agreed to waive all or a portion of its fee in an
amount that will limit annual operating expenses to not more than 0.50% of the
average daily net assets of the Portfolio. The annualized expense ratio, had
there been no fee waivers by the Manager, would have been 0.55% and 0.45% for
the six-month period ended December 31, 1995, and for the period ended June 30,
1995, respectively.
Kiewit Mutual Fund/Tax-Exempt Portfolio
- ---------------------------------------
Investments/December 31, 1995 (Unaudited)
(Showing Percentage of Total Value of Net Assets)
- ------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
___________ _________ ________
Municipal Bonds - 99.4%
Arizona - 2.3%
Maricopa County, AZ (Univ. School Proj.
of 1988) Ser. E, 6.50%, 07/01/08,
Prerefunded 07/01/02 @ 100 Aaa/AAA $ 1,000,000 $ 1,117,500
Phoenix, AZ Civic Imp. Corp., Airport
Term Excise Tax Rev., 7.80%, 07/01/11,
Partially Prerefunded 07/01/97 @ 102 Aa/AA+ 2,000,000 2,122,500
-----------
3,240,000
----------
California - 3.7%
Laguna Beach, CA, 6.60%, 08/15/09,
Callable 08/15/01 @ 102 Aa/AA 1,150,000 1,246,312
Los Angeles, CA General Obligation,
5.40%, 09/01/06, Callable 09/01/03 @ 101 Aaa/AAA 2,000,000 2,085,000
Southern California, Public Pwr. Auth.,
(Mead Adelanto Proj.) Ser. A, 4.75%,
07/01/08, Callable 07/01/04 @ 102 Aaa/AAA 2,000,000 1,920,000
------------
5,251,312
------------
Colorado - 1.5%
Denver, CO City & County General
Obligation, 6.375%, 08/01/02,
Callable 08/01/01 @ 101 Aa/AA 1,920,000 2,119,200
-----------
Connecticut - 4.4%
Connecticut State General Obligation,
4.75%, 03/15/07, Callable 03/15/04
@ 101.5 Aa/AA- 6,500,000 6,305,000
-----------
Florida - 4.5%
Alachua Cnty, FL (Pub. Imp. Rev.) 5.00%,
08/01/06 Aaa/AAA 1,000,000 1,015,000
Florida State Brd. of Educ. Cap. Outlay,
Ser. B, 5.625%, 06/01/06, Callable
06/01/05 @ 100 Aa/AA 1,920,000 2,044,800
Florida State Brd. of Educ. Cap. Outlay,
Ser. F, 5.90%, 06/01/13, Callable
06/01/05 @ 101 Aa/AA 1,000,000 1,046,250
Jacksonville, FL Electric Auth. Ref.
Rev. (St. Johns River Pwr. Park Service)
7.00%, 10/01/09, Subject to Crossover
Refunding 10/01/99 @ 101.5 Aa1/AA 2,000,000 2,210,000
-----------
6,316,050
-----------
Hawaii - 2.6%
Hawaii State General Obligation, 4.40%,
11/01/04 Aa/AA 3,700,000 3,621,375
-----------
Illinois - 7.8%
Chicago, IL General Obligation, Unltd.
Tax, School Fin. Auth., Ser. A, 5.00%,
06/01/07, Callable 06/01/04 @ 102 Aaa/AAA 3,000,000 2,970,000
Chicago, IL O'Hare International Airport,
Ser. 1988A, 8.00%, 01/01/08, Partially
Prerefunded 01/01/97 @ 102 NR/A+ 1,205,000 1,269,708
Illinois State General Obligation, 6.50%,
12/01/05, Callable 12/01/96 @ 102 A1/AA- 1,900,000 1,975,905
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Tax-Exempt Portfolio
- ---------------------------------------
Investments (Unaudited) - continued
- ------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
___________ _________ ________
Illinois State Dedicated Tax Civic
Center, Ser. A, 7.35%, 12/15/05,
Callable 12/15/00 @ 102 Aaa/AAA $ 2,000,000 $ 2,280,000
Illinois State Health Facs. Auth.
(LA Grange Memorial Hosp.) 5.50%,
05/15/23, Prerefunded 05/15/03 @ 102 Aaa/AAA 2,445,000 2,631,431
-----------
11,127,044
Indiana - 3.6%
Indiana Bond Bank Special Prog. Ser. A,
6.25%, 08/01/09, Callable 02/01/98 @ 102 Aaa/AAA 2,450,000 2,535,750
Indianapolis, IN Local Public Imp. Bond
Bank, 5.30%, 01/10/00 Aa/AA 1,500,000 1,554,375
Indianapolis, IN Airport Auth. Rev.,
9.00%, 07/01/15, Callable 07/01/96 @ 102 A1/A 1,000,000 1,043,450
-----------
5,133,575
-----------
Maryland - 3.0%
Maryland National Park & Planning Commission
Prince Georges County, MD, (Park Acquisition
& Dev.) Ser. 2, 5.00%, 07/01/01 Aa/AA 1,160,000 1,200,600
Maryland State General Obligation,
5.00%, 03/15/01 Aaa/AAA 1,000,000 1,033,750
Washington, MD General Obligation
Suburban Sanitary Dist. Ref. Rev.,
3.90%, 06/01/99 Aa1/AA 2,000,000 1,977,500
-----------
4,211,850
-----------
Massachusetts - 4.2%
Massachusetts State Health & Educ. Fac.,
(St. Joseph Hosp.) Ser. C, 9.50%,
10/01/20, Prerefunded 10/01/99 @ 102
Sinking Fund 10/01/95-99 @ 100 NR/NR 4,900,000 5,910,625
-----------
Michigan - 2.0%
Michigan Municipal Bond Auth. Rev.,
5.10%, 11/01/08, Callable 11/01/05
@ 102 Aaa/AAA 1,035,000 1,029,825
Michigan Municipal Bond Auth. Rev.,
6.95%, 05/15/11, Partially Prerefunded
05/15/01 @ 102 Aa/AA 1,575,000 1,771,875
-----------
2,801,700
------------
Minnesota - 3.2%
St. Paul, MN Sewer Rev., Ser. 1988A,
8.00%, 12/01/08, Subject to Crossover
Refunding 12/01/98 @ 101 Aaa/AAA 1,250,000 1,392,188
Washington County, MN Housing & Redev.
Auth. Jail Fac. Rev., 7.00%, 02/01/12,
Prerefunded 02/01/02 @ 100 Aaa/AAA 2,785,000 3,167,938
------------
4,560,126
------------
Missouri - 2.5%
Missouri Higher Ed. Student Loan Auth.,
Senior Lien Rev., Ser. 1992A, 5.00%,
02/15/97 Aa/NR 1,430,000 1,440,725
Missouri State General Obligation
(Third Street Building Proj.) Ser.
1992A, 7.50%, 08/01/98 Aaa/AAA 1,000,000 1,085,000
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Tax-Exempt Portfolio
- ---------------------------------------
Investments (Unaudited) - continued
- ------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
___________ _________ ________
St. Louis, MO Water Ref. Rev. & Imp.,
6.00%, 07/01/07, Callable 07/01/04
@ 102 Aaa/AAA $1,000,000 $ 1,090,000
-----------
3,615,725
------------
Nebraska - 11.1%
Douglas County, NE Zoo Fac. Rev.
(Henry Doorly Zoo Aquarium Proj.)
6.00%, 06/01/03, Callable 06/01/97
@ 100 NR/NR 2,500,000 2,528,125
Lancaster County, NE Hosp. Auth. No. 1,
(Sisters of Charity) 6.375%, 05/15/05,
Callable 05/15/01 @ 102 Aaa/AAA 1,530,000 1,675,350
Nebraska Public Pwr. Dist. Rev. Pwr.
Supply System, Ser. C, 4.40%, 01/01/03 A1/A+ 5,720,000 5,655,650
Omaha Public Pwr. Dist., NE, 4.10%,
02/01/98 Aa/AA 1,000,000 1,001,250
Omaha Public Pwr. Dist., NE, Ser. B,
4.90%, 02/01/02 Aa/AA 1,175,000 1,204,375
Omaha, NE Ref. Rev., 4.15%, 10/15/97 Aaa/AAA 2,550,000 2,565,937
Omaha, NE, 4.75%, 12/01/01 Aaa/AAA 1,070,000 1,095,413
-----------
15,726,100
-----------
Nevada - 3.7%
Clark County, NV School Dist. General
Obligation, 5.60%, 06/15/08,
Callable 06/15/05 @ 101 Aaa/AAA 5,000,000 5,206,250
-----------
New Jersey - 3.0%
Bergen County, NJ General Obligation,
General Imp., 5.55%, 12/01/99 Aaa/NR 1,450,000 1,520,688
Ocean County, NJ General Obligation,
6.75%, 07/13/02 Aa/AA- 1,000,000 1,130,000
Union County, NJ General Obligation,
4.40%, 09/01/03 Aaa/AA+ 1,635,000 1,606,387
-----------
4,257,075
New Mexico - 3.0%
Farmington, NM Pwr. Rev. 9.875%,
01/01/13, Prerefunded 07/01/05 @ 100 Aaa/AAA 1,550,000 2,129,313
New Mexico Mtg. Fin. Auth., (Single
Family Mtg. Family Prog.) Ser. 1983A,
10.00%, 07/01/96, Sinking Fund
07/01/95 @ 100 A1/A+ 25,000 25,000
New Mexico State Severance Tax, Ser.
1992C, 5.60%, 07/01/02, Callable
07/01/97 @ 101.50 Aa/AA 2,000,000 2,057,500
-----------
4,211,813
-----------
New York - 2.4%
New York, NY Corpus M-Strips 6.00%,
08/01/11, Callable 08/01/97 @ 100 NR/NR 1,400,000 1,314,250
Port Auth. of New York & New Jersey,
Ser. 1989 63rd, 7.875%, 03/01/24,
Callable 05/01/96 @ 102 A1/AA- 2,000,000 2,059,640
-----------
3,373,890
-----------
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Tax-Exempt Portfolio
- ---------------------------------------
Investments (Unaudited) - continued
- ------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
___________ _________ ________
Ohio - 2.0%
Ohio State Ref. Auth., Vern Riffe Center,
4.65%, 10/01/05, Callable 04/01/04
@ 102 Aaa/AAA $1,400,000 $ 1,377,250
Ohio State Public Imps., 5.125%,
08/01/07, Callable 08/01/03 @ 102 Aa/AA 1,415,000 1,443,300
-----------
2,820,550
-----------
Oregon - 1.3%
Oregon Health Sciences Univ. Rev.,
Ser. B, 4.125%, 07/01/99 Aaa/AAA 1,875,000 1,872,656
-----------
Pennsylvania - 1.1%
Pennsylvania Intergovernmental Coop.
Auth. Sp. Tax Rev. (City of
Philadelphia Funding Proj.) 6.00%,
06/15/00 Aaa/AAA 1,500,000 1,597,500
-----------
Rhode Island - 0.9%
Rhode Island State Health & Educ. Bldg.
Corp. Brown Univ., 6.625%, 09/01/07,
Callable 09/01/99 @ 102 Aa1/AA 1,205,000 1,305,919
-----------
South Carolina - 2.2%
South Carolina State Public Services
Auth., Ser. 1986C, 7.30%, 07/01/21,
Callable 07/01/96 @ 102 A1/AA- 3,000,000 3,112,530
-----------
Tennessee - 0.7%
Memphis-Shelby County, TN Airport Auth.
Rev., 7.10%, 02/15/98 Aaa/AAA 1,000,000 1,060,000
-----------
Texas - 7.7%
Houston, TX Housing Fin. Corp., Single
Family Mtg. Ref. Rev., Ser. 1993A,
4.70%, 06/01/98 Aaa/AAA 1,360,000 1,370,200
Houston, TX General Obligation Tax &
Rev. Cert. Ser. 1993F, 3.90%, 03/01/99 Aa/AA- 2,000,000 1,982,500
Houston, TX Independent School Dist.,
6.375%, 08/15/01 Aaa/AAA 3,925,000 4,312,594
Texas Municipal Pwr. Agency Rev.,
6.10%, 09/01/08 Aaa/AAA 2,000,000 2,215,000
Texas State Public Fin. Auth. General
Obligation, Ser. 1993A, 8.00%, 10/01/97 Aa/AA 1,000,000 1,068,750
-----------
10,949,044
-----------
Virginia - 3.8%
Fairfax, VA Water Auth., 6.125%, 01/01/29,
Prerefunded 01/01/00 @ 100 Aaa/AAA 5,000,000 5,350,000
-----------
Washington - 7.1%
Clark County, WA Public Utility Dist.,
6.00%, 01/01/01 Aaa/AAA 3,000,000 3,198,750
Seattle, WA Metropolitan Seattle Sewer
Rev., Ser. T, 6.625%, 01/01/06,
Callable 01/01/00 @ 102 A1/AA- 1,240,000 1,356,250
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Tax-Exempt Portfolio
- ---------------------------------------
Investments (Unaudited) - continued
- ------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating Amount (Note 2)
___________ _________ ________
Seattle, WA Metropolitan Seattle Sewer
Rev., Ser. X, 5.40%, 01/01/15,
Callable 01/01/03 @ 102 Aaa/AAA $2,180,000 $ 2,177,275
Washington State Public Pwr. Supply Ref.
Rev. (Nuclear Proj. #3) 7.25%,
07/01/16, Prerefunded 07/01/99 @ 102 Aaa/AAA 3,000,000 3,345,000
-----------
10,077,275
-----------
Wisconsin - 3.5%
Wisconsin State General Obligation, Ser.
1992A, 6.30%, 05/01/12, Prerefunded
05/01/02 @ 100 Aaa/AA 4,575,000 5,038,219
-----------
Wyoming - 0.6%
Wyoming Community Dev. Auth. Single
Family Mtg., Ser. 1994A, 3.60%,
06/01/20, Putable 01/25/96 @ 100 Aa/AA 871,000 870,843
------------
TOTAL MUNICIPAL BONDS (COST $137,769,666) 141,043,246
------------
Tax-Exempt Mutual Funds - 1.0%
Scudder Managed Tax-Free Fund
(COST $1,424,760) NR/NR 1,424,760 1,424,760
-----------
TOTAL INVESTMENTS (COST $139,194,426)+ - 100.4% 142,468,006
OTHER ASSETS AND LIABILITIES, NET - (0.4)% (530,734)
-----------
NET ASSETS - 100.0% $141,937,272
============
+ Cost for federal income tax and financial reporting purposes. At December
31, 1995, net unrealized appreciation was $3,273,580. This consisted of gross
unrealized appreciation for all securities in which there was an excess of
market value over cost of $3,281,312 and aggregate gross unrealized
depreciation for all securities in which there was an excess of cost over market
value of $7,732.
NR - Not Rated
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/TAX-EXEMPT PORTFOLIO
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995 (Unaudited)
Assets:
Investments in securities, at value
(cost $139,194,426) (Note 2) $142,468,006
Cash 294
Securities sold receivable 1,684,935
Interest receivable 2,394,546
Other assets 764
Unamortized organization costs (Note 2) 24,846
-------------
Total assets 146,573,391
Liabilities:
Dividends payable $ 534,227
Accrued expenses (Note 4) 51,871
Securities purchased payable 4,050,021
-----------
Total liabilities 4,636,119
------------
Net Assets $141,937,272
============
Net Assets consist of:
Shares of beneficial interest $ 686,815
Additional paid-in capital 137,842,181
Accumulated net realized gain on investments 134,696
Net unrealized appreciation of investments 3,273,580
------------
Net Assets, for 68,681,453 shares outstanding $141,937,272
============
Net Asset Value, offering and redemption price per
per share ($141,937,272 divided by 68,681,453
outstanding shares of beneficial interest, $0.01
par value) $2.07
=====
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/TAX-EXEMPT PORTFOLIO
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS - continued
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Six-Month Period Ended December 31, 1995 (Unaudited)
Interest income $3,508,796
Expenses:
Management fee (reflects $21,285 waiver)(Note 4) $258,412
Administration fee (Note 4) 25,136
Accounting fee (Note 4) 26,284
Transfer Agent fee (Note 4) 10,211
Custodian fee (Note 4) 5,998
Trustees' fees and expenses (Note 4) 2,463
Amortization of organizational expenses (Note 2) 3,435
Legal 1,444
Audit 4,926
Other 11,333
-------
Total expenses, net 349,642
---------
Net investment income 3,159,154
---------
Realized and unrealized gain on investments:
Net realized gain on investment transactions 1,111,005
Net unrealized appreciation of investments
during the period 2,178,190
---------
Net gain on investments 3,289,195
---------
Net increase in net assets resulting from operations $6,448,349
==========
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/TAX-EXEMPT PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS - continued
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Period
For the Six-Month July 25, 1994
Period Ended (Commencement of
December 31, 1995 Operations) through
(Unaudited) June 30,1995
----------------- ------------------
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 3,159,154 $ 7,775,015
Net realized gain (loss) on
investment transactions 1,111,005 (976,309)
Net unrealized appreciation of
investments during the period 2,178,190 1,095,390
------------- -------------
Net increase in net assets resulting
from operations 6,448,349 7,894,096
------------- -------------
Distributions to shareholders from net
investment income ($0.046 and $0.082
per share, respectively) (3,159,154) (7,775,015)
------------- -------------
Fund Share Transactions (a):
Receipt from shares sold 2,060 256,020,185
Receipt from shares issued on
reinvestment of distributions 3,138,552 7,172,761
Shares redeemed (10,265) (127,794,297)
------------- -------------
Net increase in net assets from Fund
share transactions 3,130,347 135,398,649
------------- -------------
Total increase in net assets 6,419,542 135,517,730
Net Assets:
Beginning of period 135,517,730 0
------------- -------------
End of period $ 141,937,272 $ 135,517,730
============= =============
(a) Transactions in capital stock were:
Shares sold 1,005 128,010,155
Shares issued on reinvestment
of distributions 1,537,262 3,614,686
Shares redeemed (5,057) (64,476,598)
------------- -------------
Net increase in shares 1,533,210 67,148,243
Shares outstanding - Beginning balance 67,148,243 0
------------- -------------
Shares outstanding - Ending balance 68,681,453 67,148,243
============= =============
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/TAX-EXEMPT PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements and
notes thereto.
For the Period
For the Six-Month July 25, 1994
Period Ended (Commencement of
December 31, 1995 Operations) through
(Unaudited) June 30,1995
----------------- ------------------
Net Asset Value - Beginning of Period $2.02 $2.00
----- -----
Investment Operations:
Net investment income 0.05 0.08
Net realized and unrealized gain
on investments 0.05 0.02
---- ----
Total from investment operations 0.10 0.10
---- ----
Distributions:
From net investment income (0.05) (0.08)
---- ----
Net Asset Value - End of Period $2.07 $2.02
===== =====
Total Return** 4.82% 5.23%
Ratios (to average net assets)/Supplemental Data:
Expenses+ 0.50%* 0.39%*
Net investment income 4.52%* 4.37%*
Portfolio turnover 109.44%* 104.34%*
Net assets at end of period ($000 omitted) 141,937 135,518
- --------------------------
* Annualized
** The total return for each period has not been annualized.
+ Since inception, Kiewit Investment Management Corp. (the "Manager") agreed
to waive all or a portion of its fee. For the period from December 7, 1994
through June 30, 1995, the Manager further agreed to waive all or a portion of
its fee in an amount that will limit annual operating expenses to not more than
0.40% of the average daily net assets of the Portfolio. Effective July 1, 1995
through June 30, 1996, the Manager agreed to waive all or a portion of its fee
in an amount that will limit annual operating expenses to not more than 0.50% of
the average daily net assets of the Portfolio. The annualized expense ratio,
had there been no fee waivers by the Manager, would have been 0.53% and 0.46%
for the six-month period ended December 31, 1995, and for the period ended June
30, 1995, respectively.
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- -----------------------------------
Investments/December 31, 1995 (Unaudited)
(Showing Percentage of Total Value of Net Assets)
- --------------------------------------------------------------------------------
Value
Shares (Note 2)
------ -------
COMMON STOCK - 88.4%
FINANCE, INSURANCE & REAL ESTATE - 4.5%
Insurance Carriers - 2.8%
United Healthcare Corp. 21,500 $ 1,408,250
------------
Savings, Credit & Other Financial Institutions - 1.7%
Crestar Financial Corp. 15,000 886,875
------------
TOTAL FINANCE, INSURANCE & REAL ESTATE 2,295,125
------------
MANUFACTURING - 60.5%
Chemicals & Allied Products - 5.1%
Monsanto Co. 9,700 1,188,250
Morton International, Inc. 39,100 1,402,713
-----------
2,590,963
-----------
Computer & Office Equipment - 7.7%
Apple Computer Ltd. 45,000 1,434,375
Cisco Systems, Inc.* 12,000 895,500
Microsoft Corp.* 11,000 965,250
3Com Corp.* 13,200 615,450
-----------
3,910,575
Consumer Products - 10.0%
Avon Products, Inc. 18,500 1,394,437
Newell Co. 50,000 1,293,750
Procter & Gamble Co. 15,000 1,245,000
Whirlpool Corp. 22,000 1,171,500
-----------
5,104,687
Crude Petroleum & Natural Gas - 2.5%
Mobil Corp. 11,500 1,288,000
-----------
Iron & Steel - 2.7%
LTV Corp.* 100,000 1,375,000
-----------
Misc. Electrical Machinery, Equip. & Supplies - 8.2%
Black & Decker Corp. 32,400 1,142,100
National Semiconductor Corp.* 70,000 1,557,500
Thomas & Betts Corp. 20,000 1,475,000
-----------
4,174,600
-----------
Miscellaneous Manufacturing Industries - 5.7%
Calgon Carbon Corp. 85,000 1,020,000
Flow International Corp.* 72,500 679,687
Litton Industries, Inc.* 26,500 1,179,250
-----------
2,878,937
-----------
Oil & Gas Exploration - 2.9%
Schlumberger, Ltd. 21,000 1,454,250
-----------
Paper & Paper Products - 1.6%
Ply-Gem Industries, Inc. 50,000 812,500
-----------
Pharmaceutical Preparations - 3.1%
Pfizer, Inc. 25,000 1,575,000
-----------
Precision Instruments & Medical Supplies - 6.1%
Medtronic, Inc. 30,000 1,676,250
Millipore Corp. 34,000 1,398,250
-----------
3,074,500
-----------
Textiles & Apparel - 2.1%
Warnaco Group, Inc. 42,500 1,062,500
-----------
Transportation Equipment - 2.8%
Chrysler Corp. 26,000 1,439,750
-----------
TOTAL MANUFACTURING 30,741,262
-----------
SERVICES - 7.3%
Business Services - 2.8%
Omnicom Group, Inc. 38,000 1,415,500
----------
Computer Services - 2.4%
Cerner Corp.* 60,000 1,230,000
-----------
Medical & Health Services - 2.1%
Tenet Healthcare Corp.* 50,000 1,037,500
-----------
TOTAL SERVICES 3,683,000
-----------
TRANSPORTATION, COMMUNICATION, ELECTRIC & SANITATION - 2.8%
Communication & Broadcasting - 2.8%
Capital Cities/ABC, Inc. 11,500 1,418,813
-----------
WHOLESALE & RETAIL TRADE - 13.3%
Miscellaneous Retail Stores - 2.1%
Dayton Hudson Corp. 14,000 1,050,000
-----------
Retail Building Materials - 4.2%
Home Depot, Inc. 45,000 2,154,375
-----------
Retail Eating & Drinking Places - 2.5%
Cracker Barrel Old Country Store, Inc. 73,500 1,267,875
-----------
Retail Food Stores - 2.7%
Albertson's, Inc. 42,000 1,380,750
-----------
The accompanying notes are an integral part of the financial statements.
Kiewit Mutual Fund/Equity Portfolio
- -----------------------------------
Investments (Unaudited) - continued
- --------------------------------------------------------------------------------
Value
Shares (Note 2)
------ -------
Retail Furniture & Appliance Stores - 1.8%
Williams-Sonoma, Inc.* 50,000 925,000
-----------
TOTAL WHOLESALE & RETAIL TRADE 6,778,000
-----------
TOTAL COMMON STOCK (COST $40,080,714) 44,916,200
-----------
Par
---
REPURCHASE AGREEMENTS - 12.2%
With CS First Boston Group Inc.: at 6.00%,
dated 12/29/95, to be repurchased at $6,187,122
on 1/02/96, collateralized by Federal Home Loan
Mortgage Corporation Pass-Through Securities with
various coupons and maturities to 01/01/14 (market
value, $691,392), Federal National Mortgage
Association Pass-Through Securities with various
coupons and maturities to 06/01/25 (market value,
$1,509,246), and Federal National Mortgage Associa-
tion Adjustable Rate Mortgage Pass-Through
Securities, 6.38%, due 01/01/28 (market
value $4,141,418) (COST $6,183,000). 6,183,000
-----------
TOTAL INVESTMENTS (COST $46,263,714) - 100.6% $ 51,099,200
OTHER ASSETS AND LIABILITIES, NET - (0.6)% (308,670)
-----------
NET ASSETS - 100% $ 50,790,530
============
+Cost for federal income tax and financial reporting purposes. At December 31,
1995, net unrealized appreciation was $4,835,486. This consisted of aggregate
gross unrealized appreciation for all securities in which there was an excess of
market value over cost of $6,118,816 and aggregate gross unrealized depreciation
for all securities in which there was an excess of cost over market value of
$1,283,330.
*Non-income producing security.
COVERED CALL OPTIONS WRITTEN AT DECEMBER 31, 1995
Shares
Subject Value
to Call (Note 2)
------ -------
Common Stock/Exp. Date/Ex. Price
--------------------------------
Apple Computer Ltd., Jan, 1996, $35 45,000 $ (36,563)
Cerner Corp., Mar, 1996, $25 40,000 (40,000)
Cisco Systems, Inc., Jan, 1996, $70 5,000 (31,875)
Medtronic, Inc., Feb, 1996, $50 30,000 (183,750)
Microsoft Corp., Jan, 1996, $80 7,000 (59,500)
Microsoft Corp., Jan, 1996, $95 4,000 (3,500)
----------
TOTAL CALL OPTIONS (PREMIUMS RECEIVED $668,878) $ (355,188)
----------
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995 (Unaudited)
Assets:
Investments in securities (including
repurchase agreements of $6,183,000),
at value (cost $46,263,714) (Note 2) $51,099,200
Cash 7,681
Receivable for Fund shares sold 15,419
Dividends and interest receivable 56,329
Other assets 93
-----------
Total assets 51,178,722
Liabilities:
Covered call options written, at value
(premiums received $668,878) $ 355,188
Accrued expenses (Note 4) 33,004
---------
Total liabilities 388,192
-----------
Net Assets $50,790,530
===========
Net Assets consist of:
Shares of beneficial interest $ 32,735
Additional paid-in capital 45,643,856
Distributions in excess of net investment income (6,506)
Accumulated net realized loss on investments (28,731)
Net unrealized appreciation of investments (Note 3) 5,149,176
-----------
Net Assets, for 3,273,451 shares outstanding $50,790,530
===========
Net Asset Value, offering and redemption price
per share ($50,790,530 divided by 3,273,451
outstanding shares of beneficial interest, $0.01
par value) $15.52
======
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS - continued
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Six-Month Period Ended December 31, 1995 (Unaudited)
Income:
Dividends $ 236,048
Interests 245,267
-----------
Total income 481,315
Expenses:
Management fee (reflects $57,766 waiver)
(Note 4) $ 81,514
Administration fee (Note 4) 25,136
Accounting fee (Note 4) 21,876
Transfer Agent fee (Note 4) 10,211
Custodian fee (Note 4) 5,735
Trustees' fees and expenses (Note 4) 2,463
Legal 1,444
Audit 4,898
Registration fees 4,911
Other 996
--------
Total expenses, net 159,184
----------
Net investment income 322,131
----------
Realized and unrealized gain (loss) on investments:
Net realized loss on investments (22,669)
Net realized gain on call options written 26,618
Net unrealized appreciation of investments
during the period 3,867,856
----------
Net gain on investments 3,871,805
----------
Net increase in net assets resulting
from operations $4,193,936
==========
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS - continued
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Period
For the Six-Month January 5, 1995
Period Ended (Commencement of
December 31, 1995 Operations) through
(Unaudited) June 30,1995
----------------- ------------------
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 322,131 $ 156,910
Net realized loss on investments (22,669) 0
Net realized gain (loss) on call
options written 26,618 (32,680)
Net unrealized appreciation of
investments during the period 3,867,856 1,281,320
------------- ------------
Net increase in net assets resulting
from operations 4,193,936 1,405,550
------------- ----------
Distribution to shareholders from:
Net investment income ($0.15 and $0.00
per share, respectively) (485,547) 0
------------- ----------
Fund Share Transactions (a):
Receipt from shares sold 25,929,827 21,063,170
Receipt from shares issued on
reinvestment of distributions 480,960 0
Shares redeemed (193,588) (1,603,778)
-------------- ----------
Net increase in net assets from
Fund share transactions 26,217,199 19,459,392
-------------- ----------
Total increase in net assets 29,925,588 20,864,942
Net Assets:
Beginning of period 20,864,942 0
-------------- ----------
End of period (including undistributed
net investment income of $0 and
$156,910, respectively) $ 50,790,530 $20,864,942
============== ===========
(a) Transactions in capital stock were:
Shares sold 1,768,947 1,613,591
Shares issued on reinvestment
of distributions 31,130 0
Shares redeemed (13,023) (127,194)
--------------- -----------
Net increase in shares 1,787,054 1,486,397
Shares outstanding - Beginning balance 1,486,397 0
--------------- -----------
Shares outstanding - Ending balance 3,273,451 1,486,397
=============== ===========
The accompanying notes are an integral part of the financial statements.
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements and
notes thereto.
For the Period
For the Six-Month January 5, 1994
Period Ended (Commencement of
December 31, 1995 Operations) through
(Unaudited) June 30,1995
----------------- ------------------
Net Asset Value - Beginning of Period $14.04 $12.50
------ ------
Investment Operations:
Net investment income 0.04 0.11
Net realized and unrealized gain
on investments 1.59 1.43
------ ------
Total from investment operations 1.63 1.54
------ ------
Distributions:
From net investment income (0.15) 0.00
------ ------
Net Asset Value - End of Period $15.52 $14.04
====== ======
Total Return ** 11.62% 12.32%
Ratios (to average net assets)/
Supplemental Data:
Expenses+ 0.80%* 0.80%*
Net investment income 1.62%* 3.06%*
Portfolio turnover rate 13.42%* 0.00%*
Net assets at end of period
($000 omitted) 50,791 20,865
- ---------------------------------
* Annualized
** The total return for each period has not been annualized.
+ For the period from inception through June 30, 1996, Kiewit Investment
Management Corp. (the "Manager") has agreed to waive all or a portion of its fee
in an amount that will limit annual operating expenses to not more than 0.80% of
the average daily net assets of the Portfolio. The annualized expense ratio,
had there been no fee waivers by the Manager, would have been 1.09% and 2.56%
for the six-month period ended December 31, 1995, and for the period ended June
30, 1995, respectively.
Kiewit Mutual Fund
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
1. Description of the Fund. The Kiewit Mutual Fund (the "Fund") is registered
under the Investment Company Act of 1940 (the "1940 Act"), as an open-end
management investment company organized as a Delaware business trust on June 1,
1994. The Declaration of Trust permits the Trustees to establish additional
series, each of which is a separate class of shares. The Fund comprises five
series of shares: Kiewit Money Market Portfolio, Kiewit Short-Term Government
Portfolio, Kiewit Intermediate-Term Bond Portfolio, Kiewit Tax-Exempt Portfolio,
and Kiewit Equity Portfolio, (each, a "Portfolio" and collectively, the
"Portfolios"). Prior to December 6, 1994, the Fund was known as Kiewit
Institutional Fund.
2. Significant Accounting Policies. The following is a summary of the
significant accounting policies of the Fund.
Security Valuation. Securities held by the Portfolios which are listed on a
securities exchange and for which market quotations are available are valued at
the last quoted sale price of the day or, if there is no such reported sale,
securities are valued at the mean between the most recent quoted bid and asked
prices. Price information for listed securities is taken from the exchange
where the security is primarily traded. Unlisted securities for which the
market quotations are readily available are valued at the most recent bid
prices. The Money Market Portfolio values securities utilizing the amortized
cost valuation method which is permitted under Rule 2a-7 under the 1940 Act.
This method involves valuing a portfolio security initially at its cost and
thereafter adjusting for amortization of premium or accretion of discount to
maturity. Each money market instrument with a remaining maturity of 60 days or
less is valued at amortized cost, which approximates market value, unless the
Fund's Board of Trustees determines that this does not represent fair value.
The value of other assets and securities for which no quotations are readily
available (including restricted securities) are determined in good faith at
fair value in accordance with procedures adopted by the Board of Trustees.
Federal Income Taxes. Each Portfolio is treated as a separate entity for
federal income tax purposes and each intends to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code and to
distribute all of its taxable and tax-exempt income to its shareholders.
Therefore, no federal income tax provision is required. At June 30, 1995,
the Money Market Portfolio, Short-Term Government Portfolio, Intermediate-
Term Bond Portfolio, Tax-Exempt Portfolio, and Equity Portfolio had a net
tax basis capital loss carryforward available to offset future net capital
gains of approximately $1,000, $427,000, $707,000, $976,000, and $33,000
respectively, which will expire on June 30, 2003.
Interest Income and Distributions to Shareholders. Interest income is accrued
as earned. Distributions of net investment income consist of accrued interest
and earned discount (including both original issue and market discount) less
amortization of premium and accrued expenses. Distributions to shareholders of
each Portfolio, except the Kiewit Equity Portfolio, are declared daily from net
investment income and paid to shareholders monthly. The Fund's policy is to
distribute substantially all net income from the Kiewit Equity Portfolio
annually. Distributions of net capital gains realized by each Portfolio will
be made annually.
Deferred Organization Costs. Organization costs incurred by each Portfolio have
been deferred and are being amortized using the straight-line method over a
five-year period beginning on the date that each Portfolio commenced operations.
In the event that any of the initial shares of a Portfolio are redeemed during
the
amortization period by any holder thereof, the redemption proceeds will be
reduced by any unamortized organization expenses in the same proportion as the
number of initial shares being redeemed bears to the number of initial shares
outstanding at the time of such redemption.
Repurchase Agreements. Each Portfolio, through the Fund's custodian, receives
delivery of the underlying securities used to collateralize the repurchase
agreements, the market value of which is required to be in an amount at least
equal to 102% of the resale price. Kiewit Investment Management Corp. ("KIM"),
the Fund Manager, is responsible for determining that the market value of these
underlying securities is maintained at a level at least equal to 102% of the
resale price. In the event of default of the obligation to repurchase, the Fund
has the right to liquidate the collateral and apply the
Kiewit Mutual Fund
Notes to Financial Statements (Unaudited) - continued
- --------------------------------------------------------------------------------
2. Significant Accounting Policies - continued
proceeds in satisfaction of the obligation. Provisions of each agreement ensure
that the market value of the collateral is sufficient in the event of default;
however, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings.
Call and Put Options. The Short-Term Government Portfolio, Intermediate-Term
Bond Portfolio and the Equity Portfolio each may sell and/or purchase exchange-
traded call options and purchase exchange traded put options on securities in
the Portfolio. When a Portfolio writes a call option an amount equal to the
premium received is reflected as a liability. The amount of the liability is
subsequently "marked to market" to reflect the current market value of the
option
written. If an option which a Portfolio has written either expires on its
stipulated expiration date, or if a Portfolio enters into a closing purchase
transaction, the Portfolio realizes a gain (or loss if the cost of the closing
exceeds the premium received when the option is sold), and the liability related
to such option is extinguished. If a call option which a Portfolio has written
is exercised, the Portfolio realizes a gain or loss from the sale of the
underlying security and the proceeds from such a sale are increased by the
premium originally received. A Portfolio as writer of an option may have no
control over whether the underlying securities may be sold (call) and as a
result bears a market risk of an unfavorable change in the price of the security
underlying the written option.
The premium paid by a Portfolio for the purchase of a put option is recorded as
an investment and subsequently marked to market to reflect the current market
value of the option purchased. If an option which a Portfolio has purchased
expires on the stipulated expiration date, the Portfolio realizes a loss in the
amount of the cost of the option. If a Portfolio enters into a closing
transaction, it realizes a gain (loss) if the proceeds from the sale are greater
(less) than the cost of the option purchased. If a Portfolio exercises a put
option, it realizes a gain or loss from the sale of the underlying security and
the proceeds from such sale are decreased by the premium originally paid.
Other. Investment security transactions are accounted for on a trade date
basis. Each Portfolio uses the specific identification method for determining
realized gain and loss on investments for both financial and federal income tax
reporting purposes.
3. Investment Securities. During the six-month period ended December 31,
1995, purchases and sales of investment securities (excluding short-term
investments) aggregated as follows:
Money Short-Term Intermediate-
Market Government Term Bond Tax-Exempt Equity
------ ---------- ------------- ---------- ------
Purchases -- $60,640,518 $45,280,295 $78,077,686 $26,193,904
Sales -- 36,154,492 31,807,398 75,364,153 2,132,085
Kiewit Mutual Fund
Notes to Financial Statements (Unaudited) - continued
- --------------------------------------------------------------------------------
3. Investment Securities - continued
Written options transactions for the Equity Portfolio during the six-month
period ended December 31, 1995 are summarized as follows:
Call/Put Options Written
-----------------------
Premiums Received
-----------------
Options Outstanding, beginning of period $ (26,359)
Options written (813,404)
Options closed 42,799
Options exercised 128,086
Options expired 0
---------
Options outstanding at December 31, 1995 (668,878)
Unrealized appreciation at December 31, 1995 313,690
---------
Market value of written options at December 31, 1995 $(355,188)
=========
During the six-month period ended December 31, 1995, the Short-Term Government
Portfolio and the Intermediate-Term Bond Portfolio had not entered into any
option contracts.
4. Management Fee and Other Transactions with Affiliates. The Fund, on behalf
of each Portfolio, employs KIM, an indirect, wholly-owned subsidiary of Peter
Kiewit Sons', Inc., a construction, mining, and telecommunications company, to
furnish investment advisory and other services to the Fund. Pursuant to an
investment management agreement with the Fund with respect to each Portfolio,
KIM manages the investment and reinvestment of their assets, provides the Fund
with records concerning KIM's activities which the Fund is required to maintain,
and renders regular reports to the Fund's officers and the Board of Trustees.
For its services under the investment management agreement for each Portfolio,
KIM receives fees from the Portfolios at the following annual rates of their
average monthly net assets: Money Market Portfolio - 0.20%; Short-Term
Government Portfolio - 0.30%; Intermediate-Term Bond Portfolio -0.40%; Tax-
Exempt Portfolio - 0.40%; and Equity Portfolio - 0.70%. Prior to December 7,
1994, KIM received fees from the Portfolios at an annual rate of 0.30% of each
Portfolios average daily net assets. In addition, prior to December 7, 1994,
KIM agreed to waive one-half of its fee with respect to each Portfolio.
Effective December 7, 1994 through June 30, 1995, KIM agreed to waive all or a
portion of its management fee and assume certain fund expenses in an amount that
limited annual operating expenses to not more than the following percentage of
the average daily net assets of each Portfolio: Money Market Portfolio - 0.30%;
Short-Term Government Portfolio - 0.40%; Intermediate-Term Bond Portfolio -
0.50%; Tax-Exempt Portfolio - 0.50%; and Equity Portfolio - 0.80%.
Effective July 1, 1995 through June 30, 1996, KIM has agreed to waive all or a
portion of its management fee and assume certain fund expenses in an amount that
will limit annual operating expenses to not more than the following percentage
of the average daily net assets of each Portfolio: Money Market Portfolio -
0.20%; Short-Term Government Portfolio - 0.30%; Intermediate-Term Bond Portfolio
- - 0.50%; Tax-Exempt Portfolio - 0.50%; and Equity Portfolio - 0.80%. These
undertakings may be amended or rescinded at any time in the future.
Kiewit Mutual Fund
Notes to Financial Statements (Unaudited) - continued
- --------------------------------------------------------------------------------
4. Management Fee and Other Transactions with Affiliates - continued
The following table summarizes the management fees for the six-month period
ended December 31, 1995:
Gross Management Management
Fee Fees Waived
---------------- -----------
Money Market Portfolio $395,729 $120,483
Short-Term Government Portfolio 233,420 90,588
Intermediate-Term Bond Portfolio 244,338 30,137
Tax-Exempt Portfolio 279,697 21,285
Equity Portfolio 139,280 57,766
Rodney Square Management Corp. ("Rodney Square"), a wholly owned subsidiary of
Wilmington Trust Company ("WTC"), which is wholly owned by Wilmington Trust
Corporation, a publicly held bank holding company, serves as Administrator to
the Fund pursuant to an Administrative Agreement with the Fund on behalf of each
Portfolio. As Administrator, Rodney Square is responsible for services such as
financial reporting, compliance monitoring and corporate management. For the
services provided, Rodney Square receives a monthly administration fee from the
Fund at an annual rate of $50,000 per Portfolio, plus an amount equal to 0.02%
of that portion of the Fund's net assets in excess of $1.5 billion, plus out-of-
pocket expenses. Treasury Strategies, Inc. ("TSI") serves as Sub-Administrator
of the Fund, pursuant to a Sub-Administration agreement with KIM. As sub-
administrator, TSI is responsible for setting performance benchmarks for each of
the Fund's Portfolios, and measuring portfolio performance against the
appropriate benchmarks. TSI also evaluates on behalf of KIM and the Fund the
performance and pricing of the Fund's external services providers. TSI is
compensated by KIM for the service it provides.
WTC serves as Custodian of the assets of the Fund. For its services, WTC is
paid a monthly fee from the Fund at an annual rate of 0.009% of the Fund's
average daily net assets up to $1 billion, and 0.0075% of Fund's average daily
net assets in excess of $1 billion, plus $12 per purchase, sale or maturity of a
portfolio security. The custodian fee is subject to a minimum charge of $500
per Portfolio, per month, exclusive of any transaction charges.
Rodney Square serves as Transfer Agent and Dividend Paying Agent of the Fund
pursuant to a separate Transfer Agency Agreement with the Fund on behalf of each
Portfolio. For its services, the Fund pays Rodney Square a monthly fee of
$5,000, plus out-of-pocket expenses.
Rodney Square determines the net asset value per share of each Portfolio and
provides accounting services to the Fund pursuant to an Accounting Services
Agreement with the Fund on behalf of each Portfolio. For its services, Rodney
Square receives an annual fee of $40,000 per Portfolio, plus an amount equal to
0.01% of that portion of the Fund's average daily net assets in excess of $100
million.
Independent Trustees are paid an annual fee of $5,000 from the Fund, plus $250
per Portfolio per meeting attended, plus travel expenses in connection with
meetings. Certain officers and trustees of the Fund are also officers and/or
directors of KIM.
This report is submitted for the general information of the shareholders of the
Fund. The report is not authorized for distribution to prospective investors in
the Fund unless preceded or accompanied by an effective Prospectus of the Fund.
