Filed with the Securities and Exchange Commission on September 30, 1996.
1933 Act Registration File No. 33-84762
1940 Act File No. 811-8648
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. *
Post-Effective Amendment No. 2 *
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 5 *
KIEWIT MUTUAL FUND
(Exact Name of Registrant as Specified in Charter)
1000 Kiewit Plaza, Omaha, NE 68131-3374
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (402) 342-2052
Kenneth D. Gaskins, Esq., Secretary Copy to:
Kiewit Mutual Fund Joseph V. Del Raso, Esq.
1000 Kiewit Plaza Stradley, Ronan, Stevens & Young
Omaha, NE 68131-3374 2600 One Commerce Square
(Name and Address of Agent for Service) Philadelphia, PA 19102
It is proposed that this filing will become effective
immediately upon filing pursuant to paragraph (b)
X on October 1, 1996 pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)(1)
on pursuant to paragraph (a)(1)
75 days after filing pursuant to paragraph (a)(2)
on pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following box:
This post-effective amendment designates a new effective date for a previously
filed post-effective amendment.
Registrant has filed a declaration registering an indefinite amount of
securities pursuant to Rule 24f-2 under the Investment Company Act of 1940,
as amended. Registrant filed the notice required by Rule
24f-2 for its fiscal year ended June 30, 1996 on or about August 27, 1996.
CROSS-REFERENCE SHEET
Pursuant to Rule 481(a)
KIEWIT MUTUAL FUND
Items Required By Form N-1A
PART A - PROSPECTUS
Item No. Item Caption Prospectus Caption
1. Cover Page Cover Page
2. Synopsis Highlights; Expense Table
3. Condensed Financial Financial Highlights;
Information Performance Information
4. General Description of Cover Page; Highlights; Investment Objective and
Registrant Policies; Risk Factors; General Information
5. Management of the Fund Management of the Fund
6. Capital Stock and Other Dividends, Capital Gains Distributions and Taxes;
Securities Shareholder Accounts; General Information
7. Purchase of Securities Highlights; Purchase of Shares;
Being Offered Shareholder Accounts; Valuation of Shares;
Exchange of Shares
8. Redemption or Repurchase Shareholder Accounts; Redemption of Shares
9. Pending Legal Proceedings Not Applicable
CROSS-REFERENCE SHEET
Pursuant to Rule 481(a)
KIEWIT MUTUAL FUND
Items Required By Form N-1A (continued)
PART B - STATEMENT OF ADDITIONAL INFORMATION
Caption in Statement of
Item No. Item Caption Additional Information
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information History
and History
13. Investment Objectives Investment Limitations and Policies
and Policies
14. Management of the Fund Management of the Fund
15. Control Persons and Principal Control Persons and Principal
Holders of Securities Holders of Securities
16. Investment Advisory and Management of the Fund; Other Information
Other Services
17. Brokerage Allocation Brokerage Transactions
18. Capital Stock and Other Not Applicable
Securities
19. Purchase, Redemption and Purchase and Redemption of Shares
Pricing of Securities
Being Offered
20. Tax Status Tax Matters
21. Underwriters Management of the Fund
22. Calculation of Performance Calculation of Performance Data
Data
23. Financial Statements Financial Statements;
Report of Independent Accountants
KIEWIT MUTUAL FUND
PROSPECTUS
September 30, 1996
This prospectus describes the Kiewit Money Market Portfolio,
Kiewit Short-Term Government Portfolio, Kiewit Intermediate-Term
Bond Portfolio, Kiewit Tax-Exempt Portfolio and Kiewit Equity
Portfolio (collectively, the "Portfolios"), each a series of shares
issued by Kiewit Mutual Fund (the "Fund"), 1000 Kiewit Plaza,
Omaha, NE 68131-3344, (800) 2KIEWIT. Each Portfolio is an
open-end, diversified, management investment company whose shares
are offered without a sales charge.
The Fund issues five series of shares, each of which
represents a separate class of the Fund's shares of beneficial
interest, having its own investment objective and policies. The
investment objective of the Kiewit Money Market Portfolio is to
provide high current income while maintaining a stable share price
by investing in short-term money market securities. The investment
objective of the Kiewit Short-Term Government Portfolio is to
provide investors with as high a level of current income as is
consistent with the maintenance of principal and liquidity. The
investment objective of the Kiewit Intermediate-Term Bond Portfolio
is to provide as high a level of current income as is consistent
with reasonable risk. The investment objective of the Kiewit Tax-
Exempt Portfolio is to provide as high a level of current income
exempt from federal income tax as is consistent with reasonable
risk. The investment objective of the Kiewit Equity Portfolio is
to achieve long-term capital appreciation.
This prospectus contains information about the Portfolios that
prospective investors should know before investing and should be
read carefully and retained for future reference. A Statement of
Additional Information dated September 30, 1996, including the
Fund's most recent Annual Report to Shareholders is incorporated
herein by reference, has been filed with the Securities and
Exchange Commission and is available upon request, without charge,
by writing or calling the Fund at the above address or telephone
number.
The shares of the Kiewit Money Market Portfolio are neither insured
nor guaranteed by the U.S. Government. While the Portfolio will
make every effort to maintain a stable net asset value of $1.00 per
share, there is no assurance that the Portfolio will be able to do
so.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
TABLE OF CONTENTS
Page
HIGHLIGHTS 4
EXPENSE TABLE 7
FINANCIAL HIGHLIGHTS 9
INVESTMENT OBJECTIVES AND POLICIES 11
Kiewit Money Market Portfolio 11
Kiewit Short-Term Government Portfolio 13
Kiewit Intermediate-Term Bond Portfolio 13
Kiewit Tax-Exempt Portfolio 14
Kiewit Equity Portfolio 16
Other Investment Policies 17
RISK FACTORS 19
MANAGEMENT OF THE FUND 21
DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS AND TAXES 24
PURCHASE OF SHARES 26
SHAREHOLDER ACCOUNTS 27
VALUATION OF SHARES 28
EXCHANGE OF SHARES 29
REDEMPTION OF SHARES 29
PERFORMANCE INFORMATION 32
GENERAL INFORMATION 32
APPENDIX - DESCRIPTION OF RATINGS 34
HIGHLIGHTS
The Fund
The Fund is an open-end, diversified management investment
company commonly known as a "mutual fund." The Fund was
organized as a Delaware business trust on June 1, 1994. The Fund
currently offers 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.
Investment Objectives
The investment objective of each Portfolio of Kiewit Mutual
Fund is to provide its investors with:
Money Market High current income, while maintaining a stable share
price by investing in short-term money market
securities.
Short-Term Government High level of current income, consistent
with the maintenance of principal and liquidity.
Intermediate-Term Bond High level of current income, consistent
with reasonable risk.
Tax-Exempt High level of current income, exempt from federal
income tax, consistent with reasonable risk.
Equity Long-term capital appreciation.
Although the investment objective of each Portfolio is not
fundamental and may be changed by the Board of Trustees without
shareholder approval, the Fund intends to notify shareholders
before making any material change. Due to the inherent risks of
investments, there can be no assurance that a Portfolio will
achieve its objective. See "Investment Objectives and Policies."
How to Purchase Shares
After you open an account, you may purchase shares by (a)
writing the Fund and enclosing your check as payment or (b) by
calling the Fund at (800) 2KIEWIT to arrange for payment by wire
transfer. You may open an account by mailing a completed
application form (enclosed) to the Fund. The public offering
price of the shares of each Portfolio is the net asset value per
share next determined after acceptance of the purchase order and
payment. The Fund charges no sales load, exchange fees, or
distribution fees under a Rule 12b-1 plan. See "Purchase of
Shares."
How to Redeem Shares
You may redeem shares by mailing written instructions to the
Fund or by calling the Fund at (800) 2KIEWIT (if you requested
telephone redemption privileges on an application form). Shares
will be redeemed at the net asset value per share next determined
after acceptance of a redemption request. The Fund will promptly
mail you a check, unless other arrangements have been made. See
"Redemption of Shares."
Dividend Reinvestment
Each Portfolio, except the Kiewit Equity Portfolio, intends
to pay monthly dividends from its net investment income and will
pay net capital gains, if any, annually. The Kiewit Equity
Portfolio intends to pay annual dividends from net investment
income, together with any net capital gains.
You may choose to receive dividends and capital gains
distributions in cash or you may choose to automatically reinvest
them in additional shares of the Portfolio. See "Dividends,
Capital Gains Distributions and Taxes."
Investment Manager, Underwriter and Servicing Agents
Kiewit Investment Management Corp. serves as the investment
manager of each Portfolio. Rodney Square Distributors, Inc.
serves as the Portfolios' underwriter. Wilmington Trust Company
serves as the custodian of the Portfolios' assets and Rodney
Square Management Corporation serves as the Portfolios'
administrator, transfer agent and accounting services agent.
Treasury Strategies, Inc. serves as the Portfolios' sub-
administrator. See "Management of the Fund."
Risk Factors
Investors should consider a number of factors: (i) each
Portfolio invests in securities that fluctuate in value, and
there can be no assurance that the objective of any Portfolio
will be achieved; (ii) each Portfolio may invest in repurchase
and reverse repurchase agreements, which involve the risk of loss
if the counterparty defaults on its obligations under the
agreement; (iii) each Portfolio has reserved the right to borrow
amounts not exceeding 33% of its net assets; and (iv) the Kiewit
Intermediate-Term Bond Portfolio may invest in mortgage
securities, whose market values may vary with changes in market
interest rates to a greater or lesser extent than the market
values of other debt securities. See "Risk Factors."
Peter Kiewit Sons', Inc.
An investment in the Fund is not a direct or indirect
investment in the common stock of Peter Kiewit Sons', Inc.
("PKS"). Virtually all of PKS' common stock is owned by
employees or former employees of PKS. The Fund is restricted
from investing in the securities of PKS and its affiliates. PKS
and its affiliates do not guarantee that an investment in the
Fund will result in satisfactory results.
EXPENSE TABLE
Shareholder Transaction Costs None
Annual Portfolio Operating Expenses
(as a percentage of average net assets)
<TABLE>
<CAPTION>
Short- Intermediate-
Money Term Term Tax-
Market Government Bond Exempt Equity
Portfolio Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C>
Management Fees
(after fee waiver) .13% .17% .33% .36% .45%
Other Expenses .07% .13% .17% .14% .35%
Total Portfolio
Operating Expenses .20% .30% .50% .50% .80%
</TABLE>
The information in the Expense Table has been restated to reflect changes in
the amounts of management fees waived and Fund expenses assumed.
Example
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return and redemption at the end of each time period:
1 Year 3 Years 5 Years 10 Years
Money Market Portfolio $2 $6 $11 $26
Short-Term Government Portfolio $3 $10 $17 $38
Intermediate-Term Bond Portfolio $5 $16 $28 $63
Tax-Exempt Portfolio $5 $16 $28 $63
Equity Portfolio $8 $26 $44 $99
The purpose of the above Expense Table and Example is to
assist investors in understanding the various costs and expenses
that an investor in the Portfolios will bear directly or
indirectly.
The Example should not be considered a representation of
past or future expenses. Actual expenses may be greater or lesser
than those shown. The above Example is based on actual expenses
incurred by the Portfolios during the fiscal year ended June 30,
1996.
Through June 30, 1997, the Manager has agreed to waive all
or a portion of its advisory 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 a Portfolio: Kiewit Money Market Portfolio - .20%;
Kiewit Short-Term Government Portfolio - .30%; Kiewit
Intermediate-Term Bond Portfolio - .50%; Kiewit Tax-Exempt
Portfolio - .50%; and Kiewit Equity Portfolio - .80%. (See
"Management of the Fund" for additional information.) Without
such waiver of fees and assumption of expenses, the "Management
Fee," "Other Expenses" and "Total Portfolio Operating Expenses"
would be: Kiewit Money Market Portfolio 0.20%, 0.07% and 0.27%;
Kiewit Short-Term Government Portfolio 0.30%, 0.13% and 0.43%;
Kiewit Intermediate-Term Bond Portfolio 0.40%, 0.17% and 0.57%;
Kiewit Tax-Exempt Portfolio 0.40%, 0.14% and 0.54%; and Kiewit
Equity Portfolio 0.70%, 0.35% and 1.05%.
FINANCIAL HIGHLIGHTS
KIEWIT MUTUAL FUND
The following table includes selected data for a share outstanding from the
effective date of the Fund's registration statement under the Securities Act
of 1933 (December 6, 1994) or commencement of operations, whichever occurs
later, through the end of the Fund's fiscal year on June 30, 1996.* The
amounts in this table are audited and should be read in conjunction with the
Fund's audited financial statements, the notes thereto, and the independent
accountant's report thereon, all of which are included in the Fund's
Statement of Additional Information.
<TABLE>
<CAPTION> Short- Intermediate-
Money Term Term Tax-
Market Government Bond Exempt Equity
Portfolio Portfolio Portfolio Portfolio Portfolio
For the Period ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1995* 1996 1995* 1996 1995* 1996 1995* 1996 1995*
Net asset value -
Beginning of
period $1.00 $1.00 $2.03 $1.98 $2.05 $1.96 $2.02 $1.96 $14.04 $12.50
Investment Operations:
Net investment
income 0.05 0.03 0.12 0.07 0.13 0.08 0.09 0.05 0.13 0.11
Net realized and
unrealized gain (loss)
on investments - - (0.03) 0.05 (0.04) 0.09 - 0.06 2.56 1.43
Total from investment
operations 0.05 0.03 0.09 0.12 0.09 0.17 0.09 0.11 2.69 1.54
Distributions:
From net investment
income (0.05) (0.03) (0.12) (0.07)(0.13)(0.08) (0.09) (0.05) (0.15) -
Net asset value
- - End of period $1.00 $1.00 $2.00 $2.03 $2.01 $2.05 $2.02 $2.02 $16.58 $14.04
Total Return 5.61% 3.31%+4.66% 6.18%+4.48% 8.63%+ 4.55% 5.73%+19.24% 12.32%+
Ratios (to average net assets)/Supplemental Data:
Expenses** 0.20% 0.30%+0.30% 0.40%+0.50% 0.50%+ 0.50% 0.50%+ 0.80% 0.80%+
Net investment
income 5.47% 5.82%+6.06% 6.17%+6.37% 6.72%+ 4.47% 4.50%+ 1.34% 3.06%+
Portfolio turnover
rate N/A N/A 57.52% 69.57%+ 86.06%121.36%+100.61%92.53%+16.95% 0.00%+
Net assets at end of
period
(000 omitted)$389,967 $380,708$183,316$132,828$122,952$105,02$142,185$135,518$66,137$20,865
Average Commission rate
paid - - - - - - - - $0.0637 -
</TABLE>
_______________________
* The periods shown for the Money Market Portfolio, Short-Term
Government Portfolio, Intermediate-Term Bond Portfolio, and
Tax-Exempt Portfolio each begin on December 6, 1994 with the
effectiveness of the Fund's registration statement. The
period shown for the Equity Portfolio begins with its
commencement of operations on January 5, 1995, after the
effectiveness of the Fund's registration statement.
** For the period from December 6, 1994 through June 30, 1995,
Kiewit Investment Management Corp. (the "Manager") agreed to
waive all or a portion of its fee in an amount that limited
annual operating expenses of the (i) Money Market Portfolio to
not more than 0.30% of the average daily net assets of the
Portfolio; (ii) Short-Term Government Portfolio to not more
than 0.40% of the average daily net assets of the Portfolio;
(iii) Intermediate-Term Bond Portfolio to not more than 0.50%
of the average daily net assets of the Portfolio; (iv) Tax-
Exempt Portfolio to not more than 0.50% of the average daily
net assets of the Portfolio; (v) Equity Portfolio to not more
than 0.80% of the average daily net assets of the Portfolio.
The annualized expense ratio, had there been no assumption of
expenses or fee waivers by the Manager, would have been 0.27%,
0.43%, 0.57%, 0.54% and 1.05%, and 0.30%, 0.46%, 0.63%, 0.53%
and 2.56% for the fiscal year ended June 30, 1996 and for the
period ended June 30, 1995, respectively for each Portfolio.
Effective July 1, 1995 through June 30, 1997, the Manager has
agreed to waive all or a portion of its fee in an amount that
will limit annual operating expenses of the (i) Money Market
Portfolio to not more than 0.20% of the average daily net
assets of the Portfolio; (ii) Short-Term Government Portfolio
to not more than 0.30% of the average daily net assets of the
Portfolio; (iii) Intermediate-Term Bond Portfolio to not more
than 0.50% of the average daily net assets of the Portfolio;
(iv) Tax-Exempt Portfolio to not more than 0.50% of the
average daily net assets of the Portfolio; and (v) Equity
Portfolio 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
0.27%, 0.43%, 0.57%, 0.54% and 1.05% for the fiscal year ended
June 30, 1996, respectively for each Portfolio.
+ Unannualized
+ Annualized
INVESTMENT OBJECTIVES AND POLICIES
Kiewit Money Market Portfolio
The investment objective of the Kiewit Money Market
Portfolio is to provide high current income while maintaining a
stable share price by investing in short-term money market
securities. The Portfolio invests in U.S. dollar-denominated
money market instruments that mature in 13 months or less,
maintains an average weighted maturity of 90 days or less and
limits its investments to those investments which the Board of
Trustees determines present minimal credit risks.
The Portfolio will invest in the following money market
obligations issued by financial institutions, nonfinancial
corporations, and the U.S. Government, state and municipal
governments and their agencies or instrumentalities:
(1) United States Treasury obligations including bills, notes,
bonds and other debt obligations issued by the United States
Treasury. These securities are backed by the full faith and
credit of the U.S. Government.
(2) Obligations of agencies and instrumentalities of the U.S.
Government which are supported by the full faith and credit
of the U.S. Government, such as securities of the Government
National Mortgage Association, or which are supported by the
right of the issuer to borrow from the U.S. Treasury, such
as securities issued by the Federal Financing Bank; or which
are supported by the credit of the agency or instrumentality
itself, such as securities of Federal Farm Credit Banks.
(3) Repurchase agreements that are fully collateralized by the
securities listed in (1) and (2) above.
(4) Commercial paper rated in the two highest categories of
short-term debt ratings of any two Nationally Recognized
Statistical Ratings Organizations ("NRSROs"),(such as
Moody's Investors Service, Inc. and Standard & Poor's Rating
Services) or, if unrated, issued by a corporation having
outstanding comparable obligations that are rated in the two
highest categories of short-term debt ratings. See
"Appendix - Description of Ratings."
(5) Corporate obligations having a remaining maturity of 397
calendar days or less, issued by corporations having
outstanding comparable obligations that are (a) rated in the
two highest categories of any two NRSROs or (b) rated no
lower than the two highest long-term debt ratings categories
by any NRSRO. See "Appendix - Description of Ratings."
(6) Obligations of U.S. banks, such as certificates of deposit,
time deposits and bankers acceptances. The banks must have
total assets exceeding $1 billion.
(7) Short-term Eurodollar and Yankee obligations of banks having
total assets exceeding one billion dollars. Eurodollar bank
obligations are dollar-denominated certificates of deposit
or time deposits issued outside the U.S. capital markets by
foreign branches of U.S. banks or by foreign banks; Yankee
bank obligations are dollar-denominated obligations issued
in the U.S. capital markets by foreign banks.
The Portfolio will not invest more than 5% of its total
assets in the securities of a single issuer. With respect to any
security rated in the second highest rating category by an NRSRO,
the Portfolio will not invest more than (i) 1% of its total
assets in such securities issued by a single issuer and (ii) 5%
of its total assets in such securities of all issuers. Up to 10%
of the Portfolio's net assets may be invested in "restricted" and
other illiquid money market securities, which are not freely
marketable.
The Portfolio may invest in repurchase agreements. A
repurchase agreement is a means of investing monies for a short
period. In a repurchase agreement, a seller--a U.S. commercial
bank or recognized U.S. securities dealer--sells securities to
the Portfolio and agrees to repurchase the securities at the
Portfolio's cost plus interest within a specified period
(normally one day). In these transactions, the securities
purchased by the Portfolio will have a total value equal to or in
excess of the value of the repurchase agreement, and will be held
by the Portfolio's custodian bank until repurchased. Under the
Investment Company Act of 1940 (the "1940 Act"), a repurchase
agreement is deemed to be the loan of money by the Portfolio to
the seller, collateralized by the underlying securities.
Eurodollar and Yankee obligations are subject to the same
risks that pertain to domestic issues, notably credit risk,
market risk and liquidity risk. Additionally, Eurodollar (and to
a limited extent, Yankee) obligations are subject to certain
sovereign risks. One such risk is the possibility that a foreign
government might prevent dollar-denominated funds from flowing
across its borders. Other risks include: adverse political and
economic developments in a foreign country; the extent and
quality of government regulation of financial markets and
institutions; the imposition of foreign withholding taxes; and
expropriation or nationalization of foreign issuers. However,
Eurodollar and Yankee obligations will undergo the same credit
analysis as domestic issues in which the Portfolio invests, and
foreign issuers will be required to meet the same tests of
financial strength as the domestic issuers approved for the
Portfolio.
Kiewit Short-Term Government Portfolio
The investment objective of the Kiewit Short-Term Government
Portfolio is to provide investors with as high a level of current
income as is consistent with the maintenance of principal and
liquidity. The Portfolio invests at least 65% of its assets in
U.S. Treasury securities and U.S. Government agency securities.
The Portfolio may also invest in repurchase agreements
collateralized by U.S. Treasury or U.S. Government agency
securities. In an effort to minimize fluctuations in market
value, the Portfolio will maintain a dollar-weighted average
maturity between one and three years.
U.S. Government agency securities are debt obligations of
agencies and instrumentalities of the U.S. Government which are
supported by the full faith and credit of the U.S. Government,
such as securities of the Government National Mortgage
Association; or which are supported by the right of the issuer to
borrow from the U.S. Treasury, such as securities issued by the
Federal Financing Bank; or which are supported by the credit of
the agency or instrumentality itself, such as securities of
Federal Farm Credit Banks.
Kiewit Intermediate-Term Bond Portfolio
The investment objective of the Kiewit Intermediate-Term
Bond Portfolio is to provide as high a level of current income as
is consistent with reasonable risk. It seeks to achieve its
objective by investing substantially all of its total assets in a
diversified portfolio of the following investment grade debt
securities: U.S. Treasury and U.S. Government agency securities,
mortgage-backed securities, asset-backed securities and
corporate. The Portfolio may also invest in repurchase
agreements collateralized by U.S. Treasury and U.S. Government
agency securities and other short-term debt securities. The
Portfolio will have an average effective maturity (i.e., the
market value weighted average time to repayment of principal) of
between three and ten years.
Debt securities rated by an NRSRO, in the lowest investment
grade debt category, have speculative characteristics; a change
in economic conditions could lead to a weakened capacity of the
issuer to make principal and interest payments. To the extent
that the rating of a debt obligation held by the Portfolio falls
below investment grade, the Portfolio, as soon as practicable,
will dispose of the security, unless such disposal would be
detrimental to the Portfolio in light of market conditions. See
"Appendix - Description of Ratings."
The Portfolio may invest in both fixed and variable or
floating rate instruments. Variable and floating rate securities
bear interest at rates which vary with changes in specified
market rates or indices, such as a Federal Reserve composite
index. The interest rate on these securities may be reset daily,
weekly, quarterly or some other reset period, and may have a
floor or ceiling on interest rate changes. There is a risk that
the current interest rate on such securities may not accurately
reflect existing market interest rates. Some of these securities
carry a demand feature which permits the Portfolio to sell them
during a predetermined time period at par value plus accrued
interest. The demand feature is often backed by a credit
instrument, such as a letter of credit, or by a creditworthy
insurer. The Portfolio may rely on such instrument or the
creditworthiness of the insurer in purchasing a variable or
floating rate security.
Kiewit Tax-Exempt Portfolio
The investment objective of the Kiewit Tax-Exempt Portfolio
is to provide as high a level of current income exempt from
federal income tax as is consistent with reasonable risk. Because
of this emphasis, capital appreciation is not an investment
objective. The Portfolio pursues its objective by investing
primarily in municipal obligations whose interest is, in the
opinion of counsel to the issuer, exempt from federal income tax.
As a fundamental policy, the Portfolio will normally invest at
least 80% of its net assets in securities the interest on which
is exempt from federal income tax, including the alternative
minimum tax. However, the Portfolio may invest up to 20% of its
net assets in municipal securities, the interest on which is a
preference item for purposes of the federal alternative minimum
tax ("AMT bonds"). When the Manager is unable to locate
investment opportunities with desirable risk/reward
characteristics, the Portfolio may invest up to 20% of its net
assets in the following: cash, cash equivalent short-term
obligations, certificates of deposit, commercial paper,
obligations issued or guaranteed by the U.S. Government or any of
its agencies or instrumentalities, and repurchase agreements.
Municipal obligations are issued by states, territories and
possessions of the United States and the District of Columbia and
their political subdivisions, agencies and instrumentalities to
raise money for various public purposes. Municipal obligations
consist of general obligation bonds, revenue bonds and notes.
General obligation bonds are backed by the issuer's pledge of its
full faith, credit and taxing power for the payment of principal
and interest and are considered the safest type of municipal
investment. Revenue bonds are backed by revenues derived from a
specific project, facility or revenue source. At times, the
Portfolio may invest more than 25% of the value of its assets in
industrial development bonds, a type of revenue bond. Although
issued by a public authority, some industrial revenue bonds may
be backed only by the credit and security of a private issuer and
may involve greater credit risk. Municipal notes are issued to
finance short-term capital needs of a municipality and include
tax and revenue anticipation notes, bond anticipation notes and
commercial paper. Municipal obligations bear fixed, floating and
variable rates of interest.
AMT bonds are tax-exempt "private activity" bonds issued
after August 7, 1986, whose proceeds are directed at least in
part to a private, for-profit organization. While the income
from AMT bonds is exempt from regular federal income tax, it is a
tax preference item for purposes of the alternative minimum tax.
The alternative minimum tax is a special separate tax that
applies to a limited number of taxpayers who have certain
adjustments to income or tax preference items.
The Portfolio also may invest up to 5% of its total assets
in the following municipal-based obligations: municipal lease
obligations, inverse floaters, tender option bonds, when-issued
securities and zero coupon bonds. See the Fund's Statement of
Additional Information for a discussion of these types of
investments.
The Portfolio may invest in the various types of municipal
securities in any proportion. Although the Portfolio does not
currently intend to do so on a regular basis, it may invest more
than 25% of its assets in tax-exempt securities that are
repayable out of revenue streams generated from economically
related projects or facilities, if such investment is deemed
necessary or appropriate by the Manager. To the extent that the
Portfolio's assets are concentrated in tax-exempt securities
payable from revenues on economically related projects and
facilities, the Portfolio will be subject to the risks presented
by such projects to a greater extent than it would be if the
Portfolio's assets were not so concentrated.
The Portfolio will invest only in investment grade
obligations, or if unrated, in obligations that the Manager
determines to be of comparable quality. The Portfolio will have
an average effective maturity (i.e., the market value weighted
average time to repayment of principal) of between three and ten
years. See "Appendix - Description of Ratings."
Kiewit Equity Portfolio
The investment objective of the Kiewit Equity Portfolio is
to achieve long-term capital appreciation. The Portfolio invests
primarily in a diversified portfolio of equity securities
consisting of common stocks, preferred stocks and securities
convertible into common stock, which, in the Manager's opinion,
are undervalued in the marketplace at the time of purchase.
Dividend income is not a primary consideration compared to growth
in capital. In selecting securities for the Portfolio, the
Manager may evaluate factors it believes are likely to affect
long-term capital appreciation such as the issuer's background,
industry position, historical returns on equity and experience
and qualifications of the management team. The Manager may
rotate the Portfolio holdings among various market sectors based
on economic analysis of the overall business cycle. Under normal
conditions, at least 65 percent of the Portfolio's net assets
will be invested in equity securities.
The Portfolio invests in equity securities only if they are
listed on registered exchanges or actively traded in the over-
the-counter market. Under normal circumstances the Portfolio, to
the extent not invested in the securities described above, may
invest in investment grade seurities issued by U.S. corporations
and U.S. Government securities. In order to meet liquidity
needs, the Portfolio may hold cash reserves and invest in money
market instruments (including securities issued or guaranteed by
the U.S. Government, its agencies or instrumentalities,
repurchase agreements, certificates of deposit, time deposits and
bankers acceptances issued by banks or savings and loan
associations, and commercial paper) rated at time of purchase in
the top two ratings categories by an NRSRO or determined to be of
comparable quality by the Manager at the time of purchase. See
"Appendix - Description of Ratings."
The Portfolio may also purchase and sell American Depository
Receipts ("ADRs"). ADRs are receipts typically issued by a U.S.
bank or trust company which evidence ownership of underlying
securities issued by a foreign corporation. Generally, ADRs in
registered form are designed for use in the U.S. securities
markets. The Portfolio may invest in ADRs through "sponsored" or
"unsponsored" facilities. A sponsored facility is established
jointly by the issuer of the underlying security and a
depository, whereas a depository may establish an unsponsored
facility without participation of the issuer of the deposited
security. The Portfolio does not consider any ADR purchase to be
foreign. Holders of unsponsored ADRs generally bear all the
costs of such facilities and the depository of an unsponsored
facility frequently is under no obligation to distribute
shareholder communications received from the issuer of the
deposited security or to pass through voting rights to the
holders of such receipts in respect of the deposited securities.
Therefore, there may not be a correlation between information
concerning the issuer of the security and the market value of an
unsponsored ADR.
The Portfolio may invest in convertible securities issued by
U.S. companies. Convertible debentures include corporate bonds
and notes that may be converted into or exchanged for common
stock. These securities are generally convertible either at a
stated price or a stated rate (that is, for a specific number of
shares of common stock or other security). As with other fixed
income securities, the price of a convertible debenture to some
extent varies inversely with interest rates. While providing a
fixed-income stream, a convertible debenture also affords the
investor an opportunity, through its conversion feature, to
participate in the capital appreciation of the common stock into
which it is convertible. Common stock acquired by the Portfolio
upon conversion of a convertible debenture will generally be held
for so long as the Manager anticipates such stock will provide
the Portfolio with opportunities which are consistent with the
Portfolio's investment objective and policies.
For temporary defensive purposes when the Manager determines
that market conditions warrant, the Portfolio may invest up to
100% of its assets in the money market instruments described
above and other short-term debt instruments that are rated, at
the time of purchase, investment grade, and may hold a portion of
its assets in cash.
Other Investment Policies
Other Registered Investment Companies. Each Portfolio
reserves the right to invest in the shares of other registered
investment companies. By investing in shares of investment
companies, a Portfolio would indirectly pay a portion of the
operating expenses, management expenses and brokerage costs of
such companies as well as the expense of operating the Portfolio.
Thus, the Portfolio's investors may pay higher total operating
expenses and other costs than they might pay by owning the
underlying investment companies directly. The Manager will
attempt to identify investment companies that have demonstrated
superior management in the past, thus possibly offsetting these
factors by producing better results and/or lower expenses than
other investment companies with similar investment objectives and
policies. There can be no assurance that this result will be
achieved. However, the Manager will waive its advisory fee with
respect to the assets of a Portfolio invested in other investment
companies, to the extent of the advisory fee charged by any
investment adviser to such investment company. In addition, the
1940 Act limits investment by a Portfolio in shares of other
investment companies to no more than 10% of the value of the
Portfolio's total assets.
Securities Loans. Each Portfolio may lend securities to
qualified brokers, dealers, banks and other financial
institutions for the purpose of earning additional income. While
a Portfolio may earn additional income from lending securities,
such activity is incidental to the investment objective of a
Portfolio. The value of securities loaned may not exceed 33 1/3%
of the value of a Portfolio's total assets. In connection with
such loans, a Portfolio will receive collateral consisting of
cash or U.S. Government securities, which will be maintained at
all times in an amount equal to at least 100% of the current
market value of the loaned securities. In addition, the Portfolio
will be able to terminate the loan at any time, will retain the
authority to vote the loaned securities and will receive
reasonable interest on the loan, as well as amounts equal to any
dividends, interest or other distributions on the loaned
securities. In the event of the bankruptcy of the borrower, the
Fund could experience delay in recovering the loaned securities.
Management believes that this risk can be controlled through
careful monitoring procedures.
Reverse Repurchase Agreements. A Portfolio may enter into
reverse repurchase agreements with banks and broker-dealers.
Reverse repurchase agreements involve sales by a Portfolio of its
assets concurrently with an agreement by the Portfolio to
repurchase the same assets at a later date at a fixed price. A
Portfolio will establish a segregated account with its custodian
bank in which it will maintain cash, U.S. government securities
or other liquid high grade debt obligations equal in value to its
obligations with respect to reverse repurchase agreements.
Options. The Kiewit Short-Term Government Portfolio, Kiewit
Intermediate-Term Bond Portfolio and Kiewit Equity Portfolio each
may sell and/or purchase exchange-traded call options and
purchase exchange-traded put options on securities in the
Portfolio. Options will be used to generate income and to
protect against price changes and will not be engaged in for
speculative purposes. The aggregate value of option positions
may not exceed 10% of each Portfolio's net assets as of the time
the Portfolio enters into such options.
A put option gives the purchaser of the option the right to
sell, and the writer the obligation to buy, the underlying
security at any time during the option period. A call option
gives the purchaser of the option the right to buy, and the
writer of the option the obligation to sell, the underlying
security at any time during the option period. The premium paid
to the writer is the consideration for undertaking the
obligations under the option contract. There are risks
associated with option transactions including the following: (i)
the success of an options strategy may depend on the ability of
the Manager to predict movements in the prices of the individual
securities, fluctuations in markets and movements in interest
rates; (ii) there may be an imperfect correlation between the
changes in market value of the securities held by a Portfolio and
the prices of options; (iii) there may not be a liquid secondary
market for options; and (iv) while a Portfolio will receive a
premium when it writes covered call options, it may not
participate fully in a rise in the market value of the underlying
security.
Portfolio Turnover. The portfolio turnover rate for the
Kiewit Tax-Exempt Portfolio for the fiscal year ended June 30,
1996 and the annualized portfolio turnover rate for the period
ended June 30, 1995 were 100.61% and 92.53% respectively. The
Manager expects that the turnover rate will be lower in the
Fund's current fiscal year. Higher portfolio turnover rates
increase transaction costs and may result in increased capital
gains taxes. (See "Dividends, Capital Gains Distributions, and
Taxes.")
RISK FACTORS
Each Portfolio has reserved the right to borrow amounts not
exceeding 33% of its net assets for the purposes of making
redemption payments. When advantageous opportunities to do so
exist, a Portfolio may also borrow amounts not exceeding 10% of
the value of the Portfolio's net assets for the purpose of
purchasing securities. Such purchases can be considered to
result in "leveraging," and in such circumstances, the net asset
value of the Portfolio may increase or decrease at a greater rate
than would be the case if the Portfolio had not leveraged. A
Portfolio would incur interest on the amount borrowed and if the
appreciation and income produced by the investments purchased
when the Portfolio has borrowed are less than the cost of
borrowing, the investment performance of the Portfolio may be
further reduced as a result of leveraging.
In addition, each Portfolio may invest in repurchase
agreements and reverse repurchase agreements. The use of
repurchase agreements involves certain risks. For example, if
the seller of the agreement defaults on its obligation to
repurchase the underlying securities at a time when the value of
these securities has declined, a Portfolio may incur a loss upon
disposition of them. If the seller of the agreement becomes
insolvent and subject to liquidation or reorganization under the
bankruptcy code or other laws, a bankruptcy court may determine
that the underlying securities are collateral not within the
control of the Portfolio and therefore subject to sale by the
trustee in bankruptcy. Finally, it is possible that a Portfolio
may not be able to substantiate its interest in the underlying
securities. While the Fund's management acknowledges these
risks, it is expected that they can be controlled through
stringent security selection and careful monitoring. Reverse
repurchase agreements involve the risk that the market value of
the securities retained by the Portfolio may decline below the
price of the securities the Portfolio has sold but is obligated
to repurchase under the agreement. In the event the buyer of
securities under a reverse repurchase agreement files for
bankruptcy or become insolvent, the Portfolio's use of the
proceeds of the agreement may be restricted pending a
determination by the other party, or its trustee or receiver,
whether to enforce the Portfolio's obligation to repurchase the
securities. Reverse repurchase agreements are considered
borrowings by the Portfolio and as such are subject to the
investment limitations discussed above.
The mortgage-backed and asset-backed securities in which the
Kiewit Intermediate-Term Bond Portfolio may invest differ from
conventional bonds in that principal is paid back over the life
of the security rather than at maturity. As a result, the holder
of those types of securities (the Portfolio) receives monthly
scheduled payments of principal and interest, and may receive
unscheduled principal payments representing prepayments on the
underlying mortgages or assets. Such prepayments occur more
frequently during periods of declining interest rates. When the
holder reinvests the payments and any unscheduled prepayments of
principal it receives, it may receive a rate of interest which is
lower than the rate on the existing mortgage-backed and asset-
backed securities. For this reason, these securities may be less
effective than other types of securities as a means of "locking
in" long-term interest rates.
The market value of mortgage securities, like other debt
securities, generally varies inversely with changes in market
interest rates, declining when interest rates rise and rising
when interest rates decline. However, mortgage securities, due
to changes in the rates of prepayments on the underlying
mortgages, may experience less capital appreciation in declining
interest rate environments and greater capital losses in periods
of increasing interest rates than other investments of comparable
maturities.
In addition, to the extent mortgage securities are purchased
at a premium, mortgage foreclosures and unscheduled principal
prepayments may result in some loss of the holders' principal
investment to the extent of the premium paid. On the other hand,
if mortgage securities are purchased at a discount, both a
scheduled payment of principal and an unscheduled prepayment of
principal increases current and total returns and accelerates the
recognition of income which, when distributed to shareholders, is
taxable as ordinary income.
MANAGEMENT OF THE FUND
The Fund was organized as a Delaware business trust. Under
Delaware law the Fund's Board of Trustees is responsible for
establishing Fund policies and for overseeing the management of
the Fund.
Kiewit Investment Management Corp. (the "Manager"), 1000
Kiewit Plaza, Omaha, NE 68131-3344, serves as the investment
manager to each of the Portfolios. The Manager, organized in
1994, is an indirect wholly-owned subsidiary of Peter Kiewit
Sons', Inc., a construction, mining and telecommunications
company. The Manager provides the Fund with records concerning
the Manager's activities which the Fund is required to maintain
and renders regular reports to the Fund's officers and the Board
of Trustees. The Manager also selects brokers and dealers to
effect securities transactions.
Under the investment management agreement for each
Portfolio, the monthly fees of the Portfolios are at the
following annual rates of their average monthly net assets:
Kiewit Money Market Portfolio - .20%; Kiewit Short-Term
Government Portfolio - .30%; Kiewit Intermediate-Term Portfolio -
.40%; Kiewit Tax-Exempt Portfolio - .40%; and Kiewit Equity
Portfolio - .70%. Through June 30, 1997, the Manager has agreed
to waive all or a portion of its advisory 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: Kiewit Money Market
Portfolio - .20%; Kiewit Short-Term Government Portfolio - .30%;
Kiewit Intermediate-Term Bond Portfolio - .50%; Kiewit Tax-Exempt
Portfolio - .50%; and Kiewit Equity Portfolio - .80%.
Mr. P. Greggory Williams manages the investments of the
Kiewit Short-Term Government Portfolio and co-manages the Kiewit
Equity Portfolio. Mr. Williams is the Chief Investment Officer
and a Vice President of the Manager, Chief Financial Officer and
a Vice President of the Fund and a Chartered Financial Analyst.
From June 1983 to December 1986, he served as Assistant Vice
President-Investments at Mutual of Omaha Fund Management Company.
His duties included managing three investment companies. From
December 1986 to November 1990, Mr. Williams served as Senior
Vice President and Chief Investment Officer of Jefferson National
Life Insurance Company in Indianapolis, Indiana. From June 1991
to August 1994, Mr. Williams was Vice President-Investments and
Treasurer of Shenandoah Life Insurance Company of Roanoke,
Virginia.
Brian J. Mosher manages the Kiewit Intermediate-Term Bond
Portfolio and the Kiewit Tax-Exempt Portfolio, and co-manages the
Kiewit Equity Portfolio. Mr. Mosher is a Vice President of the
Manager, a Vice President of the Fund and a Chartered Financial
Analyst. From April 1984 to March 1989, he was Vice President
and Trust Officer of The Provident Bancorporation of Cincinnati,
Ohio. From March 1989 to December 1994, Mr. Mosher served as
Investment Manager of Meridian Mutual Insurance Company in
Indianapolis, Indiana.
Rodney Square Management Corporation ("Rodney Square"),
Rodney Square North, 1100 North Market, Wilmington, Delaware,
19890, serves as the Administrator, Accounting Services and
Transfer and Dividend Paying Agent for each of the Portfolios.
Administration Agreement. As Administrator, Rodney Square
supplies office facilities, non-investment related statistical
and research data, administrative services, internal auditing and
regulatory compliance services. Rodney Square also prepares
reports to shareholders of the Portfolios and proxy statements,
updates prospectuses, and makes filings with the Securities and
Exchange Commission and state securities authorities. Rodney
Square also determines the amount of dividends and other
distributions payable to shareholders, subject to approval by the
Board of Trustees, prepares financial statements and notes
thereto and supervises the preparation of federal and state tax
returns. For the provision of administrative and operational
services and facilities, Rodney Square receives a monthly fee
from the Fund at an annual rate of $50,000 per Portfolio, plus
out-of-pocket expenses.
Transfer Agency Agreement. 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.
Accounting Services Agreement. Rodney Square determines the net
asset value per share of each Portfolio and provides accounting
services to the Fund pursuant to a separate Accounting Services
Agreement with the Fund on behalf of each Portfolio.
Sub-Administration Agreement. Treasury Strategies, Inc. ("TSI"),
309 W. Washington Street, Suite 1300, Chicago, IL 60606, serves
as Sub-Administrator of the Fund, pursuant to a sub-
administration agreement with the Manager effective July 19,
1994. As sub-administrator, TSI's services consist of: (i)
assisting the Manager with regard to design and implementation of
programs for investors in the Fund and appropriate allocation
among the Fund's Portfolios to meet their respective investment
objectives, (ii) setting performance benchmarks for each
Portfolio of the Fund, (iii) measuring portfolio performance
against the appropriate benchmarks, (iv) evaluating on behalf of
the Manager and the Fund the performance and pricing of the
Fund's external service providers, including coordination between
these service providers, the Fund and its Manager, (v) preparing
reports to be included in the materials presented to the Board at
its quarterly meetings, (vi) attending all Fund Board meetings
and reporting to the Board with regard to all of the
aforementioned tasks, and (vii) completing projects as requested
by the Board on an as needed basis. For those services, TSI
receives from the Manager a fee at an annual rate of a percentage
of the average net assets of the Fund as follows: .04% of the
first $500 million and .02% of the next $1 billion. The Fund is
not a party to the Sub-Administration Agreement; the fees are
paid by the Manager and are not an operating expense of the Fund.
The Fund bears all of its own costs and expenses, including:
services of its independent accountants, legal counsel, brokerage
fees, commissions and transfer taxes in connection with the
acquisition and disposition of portfolio securities, taxes,
insurance premiums, costs incidental to meetings of its
shareholders and trustees, the cost of filing its registration
statement under federal and state securities laws, printing and
mailing of prospectuses and proxy statements, reports to
shareholders, and transfer and dividend disbursing agency,
administrative services and custodian fees. Expenses directly
allocable to a particular Portfolio are so allocated and expenses
which are not directly allocable to a particular Portfolio are
borne by each Portfolio on the basis of relative net assets.
For the fiscal year ended June 30, 1996, the total expenses
of each Portfolio were the following percentages of average net
assets: Kiewit Money Market Portfolio - 0.27%; Kiewit Short-Term
Government Portfolio - 0.43%; Kiewit Intermediate-Term Bond
Portfolio - 0.57%; Kiewit Tax-Exempt Portfolio - 0.54% and Kiewit
Equity Portfolio - 1.05%. The above percentages do not reflect
advisory fee waivers by the Manager.
DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS AND TAXES
Dividends consisting of substantially all of the ordinary
income of each Portfolio, except the Kiewit Equity Portfolio, are
declared daily and are payable to shareholders of record at the
time of declaration. Such dividends are paid on the first
business day of each month. Net capital gains distributions, if
any, will be made annually. The Fund's policy is to distribute
substantially all net investment income from the Kiewit Equity
Portfolio, together with any net realized capital gains annually.
Shareholders of the Fund will automatically receive all
income dividends and capital gains distributions in additional
shares of the Portfolio whose shares they hold at net asset value
(as of the business date following the dividend record date),
unless as to each Portfolio, upon written notice to the Fund's
Transfer Agent, Rodney Square, the shareholder selects one of the
following options: (i) Income Option -- to receive income
dividends in cash and capital gains distributions in additional
shares at net asset value; (ii) Capital Gains Option -- to
receive capital gains distributions in cash and income dividends
in additional shares at net asset value; or (iii) Cash Option --
to receive both income dividends and capital gains distributions
in cash.
Each Portfolio of the Fund is treated as a separate entity
for federal income tax purposes. Each Portfolio intends to
qualify each year as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986, as amended
(the "Code"). By distributing all of its income in accordance
with the timing requirements imposed by the Code and by meeting
certain other requirements relating to the sources of its income
and diversification of its assets, a Portfolio will not be liable
for federal income or excise taxes.
For federal income tax purposes, any income dividends which
the shareholder receives from a Portfolio, as well as any
distributions derived from the excess of net short-term capital
gain over net long-term capital loss, are treated as ordinary
income whether the shareholder has elected to receive them in
cash or in additional shares. Shareholders of the Portfolios are
notified annually by the Fund as to the federal tax status of
dividends and distributions paid by the Portfolios whose shares
they own.
Dividends which are declared by a Portfolio in October,
November or December and payable to shareholders of record on a
specified date in such a month but which, for operational
reasons, may not be paid to the shareholder until the following
January, will be treated for tax purposes as if paid by a
Portfolio and received by the shareholder on December 31 of the
calendar year in which they are declared.
Distributions derived from the excess of net long-term
capital gain over net short-term capital loss are treated as
long-term capital gain regardless of the length of time a
shareholder has owned Portfolio shares and regardless of whether
such distributions are received in cash or in additional shares.
The sale of shares of a Portfolio by redemption is a taxable
event and may result in a capital gain or loss. Any loss
incurred on sale or exchange of shares of a Portfolio, held for
six months or less, will be treated as a long-term capital loss
to the extent of capital gain dividends received with respect to
such shares.
The Portfolios may be required to report to the Internal
Revenue Service ("IRS") any taxable dividend or other reportable
payment (including share redemption proceeds) and withhold 31% of
any such payments made to shareholders who have not provided a
correct taxpayer identification number and made certain required
certifications that appear in the Application form. A
shareholder may also be subject to backup withholding if the IRS
or a broker notifies the Fund that the number furnished by the
shareholder is incorrect or that the shareholder is subject to
backup withholding for previous under-reporting of interest or
dividend income.
Shareholders of the Portfolios who are not U.S. persons for
purposes of federal income taxation, should consult with their
financial or tax advisors regarding the applicability of U.S.
withholding and other taxes to distributions received by them
from the Portfolios and the application of foreign tax laws to
these distributions.
Shareholders should also consult their tax advisors with
respect to the applicability of any state and local intangible
property or income taxes to their shares of the Portfolios and
distributions and redemption proceeds received from the
Portfolios.
Shareholders who hold shares of a Portfolio in an employer-
sponsored 401(k) or profit sharing plan, or other tax-advantaged
plan, such as an IRA, should read their plan documents with
respect to options available for receipt of dividends and federal
tax treatment of transactions involving such shares.
PURCHASE OF SHARES
After you open an account with the Fund, you may purchase
shares by (a) writing to the Fund and enclosing your check as
payment or (b) by calling (800) 2KIEWIT to arrange for payment by
wire transfer.
To Open an Account. Send your completed application form by
regular mail to Kiewit Mutual Fund, c/o Rodney Square, P.O. Box
8987, Wilmington, DE 19899, or by express mail to Kiewit Mutual
Fund, c/o Rodney Square, 1105 N. Market Street, Wilmington, DE
19801. If an application form is not enclosed with this
Prospectus, you may request an application form by calling (800)
2KIEWIT.
To Purchase by Mail. Your initial purchase may be indicated on
your application. For additional purchases, you may send the
Fund a simple letter or use order forms supplied by the Fund.
Please enclose your check drawn on a U.S. bank payable to "Kiewit
Mutual Fund." Please indicate the amount to be invested in each
Portfolio and your Portfolio account number.
To Purchase by Wire Transfer: Please call the Fund at (800)
2KIEWIT to make specific arrangements before each wire transfer.
Then, instruct your bank to wire federal funds to Rodney Square
Management Corporation, c/o Wilmington Trust Company, Wilmington,
DE -- ABA #0311-0009-2, attention: Kiewit Mutual Fund, DDA#
2648-0337, further credit -- your account number, the desired
Portfolio and your name.
Minimum Initial Investment. The minimum initial investment is
$10,000, but subsequent investments may be made in any amount.
Purchase Price and Timing. Shares of each Portfolio are offered
at their net asset value next determined after a purchase order
is received and accepted. Purchase orders received by and
accepted before the close of regular trading on the New York
Stock Exchange ("NYSE"), usually 4:00 p.m. Eastern time, on any
Business Day of the Fund will be priced at the net asset value
per share that is determined as of the close of regular trading
on the NYSE. However, purchase orders for shares of the Kiewit
Money Market Portfolio received and accepted before 2:00 p.m.,
Eastern time, on any Business Day of the Fund will be priced at
the net asset value per share that is determined at 2:00 p.m.,
Eastern time. (See "Valuation of Shares.") Purchase orders
received and accepted after those daily deadlines will be priced
as of the deadline on the following Business Day of the Fund. A
"Business Day of the Fund" is any day on which the NYSE and
Federal Reserve Bank are open for business. The Fund and RSD each
reserves the right to reject any purchase order and may suspend
the offering of shares of any Portfolio for a period of time.
In Kind Purchases. If accepted by the Fund, shares of the
Portfolios may be purchased in exchange for securities which are
eligible for acquisition by the Portfolios as described in the
Statement of Additional Information. Please contact Rodney
Square about this purchase method.
SHAREHOLDER ACCOUNTS
Shareholder Inquiries. Shareholder inquiries may be made by
writing the Fund at 1100 North Market Street, Wilmington, DE
19890 or calling (800) 2KIEWIT.
Shareholder Statements. The Fund will mail a statement at least
quarterly showing all purchases, redemptions and balances in each
Portfolio. Shareholdings are expressed in terms of full and
fractional shares of each Portfolio rounded to the nearest
1/1000th of a share. In the interest of economy and convenience,
the Portfolios do not issue share certificates.
Individual Retirement Accounts. Shares of the Portfolios may be
purchased for a tax-deferred retirement plan such as an
individual retirement account ("IRA"). For an IRA Application,
call Rodney Square at (800) 2KIEWIT. Wilmington Trust Company
("WTC") provides IRA custodial services for each shareholder
account that is established as an IRA. For these services, WTC
receives an annual fee of $10.00 per account, which fee is paid
directly to WTC by the IRA shareholder. If the fee is not paid
by the date due, Portfolio shares owned by the IRA shareholder
will be redeemed automatically for purposes of making the
payment.
Non-Individual Accounts. Corporations, partnerships, fiduciaries
and other non-individual investors may be required to furnish
certain additional documentation to make purchases, exchanges and
redemptions.
Minimum Account Size. Due to the relatively high cost of
maintaining small shareholder accounts, the Fund reserves the
right to automatically close any account with a current value of
less than $5,000 by involuntarily redeeming all shares in the
account and mailing the proceeds to the shareholder. Shareholders
will be notified if their account value is less than $5,000 and
will be allowed 60 days in which to increase their account
balance to $5,000 or more to prevent the account from being
closed. Reductions in value that result solely from market
activity will not trigger an involuntary redemption.
VALUATION OF SHARES
The net asset value per share of each Portfolio is
calculated by dividing the total market value of the Portfolio's
investments and other assets, less any liabilities, by the total
outstanding shares of the stock of the Portfolio. On each
Business Day of the Fund, net asset value is determined as of
the close of business of the NYSE, usually 4:00 p.m. Eastern
time; except for the Kiewit Money Market Portfolio which is
determined at 2:00 p.m., Eastern time. Securities held by the
Portfolios which are listed on a securities exchange and for
which market quotations are available are valued at the closing
price of the day or, if there is no such reported sale, at the
mean between the most recent quoted bid and asked prices. Price
information on listed securities is taken from the exchange where
the security is primarily traded. Unlisted securities for which
market quotations are readily available are valued at the most
recent bid prices. 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.
Money market instruments with a maturity of more than 60
days are valued at current market value, as discussed above.
Money market instruments with a maturity of 60 days or less are
valued at their amortized cost, which the Board of Trustees has
determined in good faith constitutes fair value for purposes of
complying with the 1940 Act. This valuation method will continue
to be used until such time as the Trustees determine that it does
not constitute fair value for such purposes.
The net asset value of the shares of each Portfolio, except
the Kiewit Money Market Portfolio, will fluctuate in relation to
its own investment experience. The Kiewit Money Market Portfolio
will attempt to maintain a stable net asset value of $1.00 per
share.
The offering price of shares of each Portfolio is the net
asset value next determined after the purchase order is received
and accepted; no sales charge or reimbursement fee is imposed.
EXCHANGE OF SHARES
You may exchange all or a portion of your shares in a
Portfolio for shares of any other Portfolio of the Fund that
currently offers its shares to investors. A redemption of shares
through an exchange will be effected at the net asset value per
share next determined after receipt by the Fund of the request,
and a purchase of shares through an exchange will be effected at
the net asset value per share next determined.
Exchange transactions will be subject to the minimum initial
investment and other requirements of the Portfolio into which the
exchange is made. An exchange may not be made if the exchange
would leave a balance in a shareholder's Portfolio account of
less than $5,000.
To obtain more information about exchanges, or to place
exchange orders, contact the Fund. The Fund, on behalf of the
Portfolios, reserves the right to terminate or modify the
exchange offer described here. This exchange offer is valid only
in those jurisdictions where the sale of the Portfolio's shares
to be acquired through such exchange may be legally made.
REDEMPTION OF SHARES
You may redeem shares by mailing instructions to the Fund or
calling the Fund at (800) 2KIEWIT. The Fund will promptly mail
you a check or wire transfer funds to your bank, as described
below.
To Redeem By Mail: You may send written instructions, with
signature guarantees, by regular mail to: Kiewit Mutual Fund,
c/o Rodney Square Management Corporation, P.O. Box 8987,
Wilmington, DE 19899-9752, or by express mail to Kiewit Mutual
Fund, c/o Rodney Square Management Corporation, 1105 N. Market
Street, Wilmington, DE 19801. The instructions should indicate
the Portfolio from which shares are to be redeemed, the number of
shares or dollar amount to be redeemed, the Portfolio account
number and the name of the person in whose name the account is
registered. A signature and a signature guarantee are required
for each person in whose name the account is registered. A
signature may be guaranteed by an eligible institution acceptable
to the Fund, such as a bank, broker, dealer, municipal securities
dealer, government securities dealer, credit union, national
securities exchange, registered securities association, clearing
agency, or savings association.
To Redeem By Telephone: If you want to redeem your shares by
telephone you must elect to do so by checking the appropriate box
of your initial Application or by calling the Fund at (800)
2KIEWIT to obtain a separate application for telephone
redemptions. In order to redeem by telephone, you must call the
Fund Monday through Friday during normal business hours of 9 a.m.
to 4 p.m., Eastern time, and indicate your name, Kiewit Mutual
Fund, the Portfolio's name, your Portfolio account number and the
number of shares you wish to redeem. The Fund will employ
reasonable procedures to confirm that instructions communicated
by telephone are genuine and will not be liable for any losses to
a shareholder due to unauthorized or fraudulent telephone
transactions. If the Fund, the Manager, the Transfer Agent or
any of their employees fails to abide by their procedures, the
Fund may be liable to a shareholder for losses he/she suffers
from any resulting unauthorized transaction(s). During times of
drastic economic or market changes, the telephone redemption
privilege may be difficult to implement. In the event that you
are unable to reach the Fund by telephone, you may make a
redemption request by mail.
Additional Redemption Information. You may redeem all or any
part of the value of your account on any Business Day.
Redemptions are made at the net asset value next calculated after
the Fund has received and accepted your redemption request. (See
"Valuation of Shares.") The Fund imposes no fee when shares are
redeemed.
Redemption checks are mailed on the next Business Day of the
Fund following acceptance of redemption instructions but in no
event later than 7 days following such receipt and acceptance.
Amounts redeemed by wire from each Portfolio, except the Kiewit
Money Market Portfolio, are normally wired on the next business
day after acceptance of redemption instructions (if received by
Rodney Square before the close of regular trading on the NYSE or
2:00 p.m. Eastern time, for the Kiewit Money Market Portfolio).
In no event are redemption proceeds wired later than 7 days
following such receipt and acceptance. If the shares to be
redeemed were purchased by check, the Fund reserves the right not
to make the redemption proceeds available until it has reasonable
grounds to believe that the check has been collected (which could
take up to 10 days).
Redemption proceeds exceeding $10,000 may be wired to your
predesignated bank account in any commercial bank in the United
States. The receiving bank may charge a fee for this service.
Alternatively, proceeds may be mailed to your bank or, for
amounts of less than $10,000, mailed to your Portfolio account
address of record if the address has been established for a
minimum of 60 days. In order to authorize the Fund to mail
redemption proceeds to your Portfolio account address of record,
complete the appropriate section of the application for telephone
redemptions or include your Portfolio account address of record
when you submit written instructions. You may change the account
which you have designated to receive amounts redeemed at any
time. Any request to change the account designated to receive
redemption proceeds should be accompanied by a guarantee of the
shareholder's signature by an eligible institution. A signature
and a signature guarantee are required for each person in whose
name the account is registered. Further documentation will be
required to change the designated account when shares are held by
a corporation, partnership, fiduciary or other non-individual
investor.
For more information on redemption services, call the Fund
at (800) 2KIEWIT.
Redemption Policies. Redemption payments in cash will ordinarily
be made within seven days after receipt of the redemption request
in good form. However, the right of redemption may be suspended
or the date of payment postponed in accordance with the 1940 Act.
The amount received upon redemption may be more or less than the
amount paid for the shares depending upon the fluctuations in the
market value of the assets owned by the Portfolio.
If the Board of Trustees determines that it would be
detrimental to the best interests of the remaining shareholders
of any Portfolio to make a particular payment in cash, the Fund
may pay all or part of the redemption price by distributing
portfolio securities from the Portfolio of the shares being
redeemed in accordance with Rule 18f-1 under the 1940 Act.
Investors may incur brokerage charges and other transaction costs
selling securities that were received in payment of redemptions.
PERFORMANCE INFORMATION
From time to time, performance information, such as yield or
total return for a Portfolio, may be quoted in advertisements or
in communications to shareholders. Performance quotations
represent past performance and should not be considered as
representative of future results. The current yield will be
calculated by dividing the net investment income earned per share
during the period stated in the advertisement (based on the
average daily number of shares entitled to receive dividends
outstanding during the period) by the closing net asset value per
share on the last day of the period and annualizing the result on
a semi-annual compounded basis. A Portfolio's total return may
be calculated on an annualized and aggregate basis for various
periods (which periods will be stated in the advertisement).
Average annual return reflects the average percentage change per
year in value of an investment in a Portfolio. Aggregate total
return reflects the total percentage change in value of an
investment in the Portfolio over the stated period.
The principal value of an investment in a Portfolio will
fluctuate so that an investor's shares when redeemed, may be
worth more or less than the investor's original cost. Further
information about the performance of each Portfolio is included
in the Fund's Annual Report to Shareholders which may be obtained
without charge by contacting the Fund at (800) 2KIEWIT.
GENERAL INFORMATION
The Fund, formerly named "Kiewit Institutional Fund," issues
shares of beneficial interest of each Portfolio with a par value
of $.01 per share without a sales load. The shares of each
Portfolio, when issued and paid for in accordance with this
registration statement, will be fully paid and nonassessable
shares, with equal, non-cumulative voting rights, except as
described below, and no preferences as to conversion, exchange,
dividends, redemptions or any other feature. Shareholders shall
have the right to vote only (i) for removal of Trustees, (ii)
with respect to such additional matters relating to the Fund as
may be required by the applicable provisions of the 1940 Act,
including Section 16(a) thereof, and (iii) on such other matters
as the Trustees may consider necessary or desirable. In
addition, the shareholders of each Portfolio will be asked to
vote on any proposal to change a fundamental investment policy
(i.e. a policy that may be changed only with the approval of
shareholders) of that Portfolio. All shares of the Fund entitled
to vote on a matter shall vote without differentiation between
the separate Portfolios on a one-vote-per-share basis; provided
however, if a matter to be voted on does not affect the interests
of all Portfolios, then only the shareholders of each affected
Portfolio shall be entitled to vote on the matter. If
liquidation of the Fund should occur, shareholders would be
entitled to receive on a per Portfolio basis the assets of the
particular Portfolio whose shares they own, as well as a
proportionate share of Fund assets not attributable to any
particular Portfolio then in existence. The Fund does not intend
to hold annual meetings of shareholders, except as required by
the 1940 Act or other applicable law. The Fund's By-laws provide
that meetings of shareholders shall be called for the purpose of
voting upon the question of removal of one or more Trustees upon
the written request of the holders of not less than 10% of the
outstanding shares.
Peter Kiewit Sons', Inc., a Delaware corporation with
principal offices at 1000 Kiewit Plaza, Omaha, NE 68131, is the
direct or indirect parent of shareholders of more than 25% of the
voting securities of each Portfolio and therefore may be deemed
to control each Portfolio.
APPENDIX - DESCRIPTION OF RATINGS
Description of Bond Ratings
Moody's Investors Services, Inc. ("Moody's") description of its
bond ratings are:
Aaa--Bonds which are rated Aaa are judged to be the best quality.
They carry the smallest degree of investment risk and are
generally referred to as "gilt edged." Interest payments are
protected by a large or by an exceptionally stable margin and
principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most
unlikely to impair the fundamentally strong position of such
issues.
Aa--Bonds which are rated Aa are judged to be of high quality by
all standards. Together with the Aaa group they comprise what
are generally known as high grade bonds. They are rated lower
than the best bonds because margins of protection may not be as
large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there maybe other elements present
which make the long-term risk appear somewhat larger than the Aaa
securities.
A--Bonds which are rated A possess many favorable investment
attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and interest
are considered adequate, but elements may be present which
suggest a susceptibility to impairment some time in the future.
Baa--Bonds which are rated Baa are considered as medium grade
obligations, (i.e., they are neither highly protected nor poorly
secured). Interest payments and principal security appear
adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as
well.
Ba--Bonds which are rated Ba are judged to have speculative
elements; their future cannot be considered as well assured.
Often the protection of interest and principal payments may be
very moderate, and thereby not well safeguarded during both good
and bad times over the future. Uncertainty of position
characterizes bonds in this class.
B--Bonds which are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal
payments or of maintenance of other terms of the contract over
any long period of time may be small.
Caa--Bonds which are rated Caa are of poor standing. Such issues
may be in default or there may be present elements of danger with
respect to principal or interest.
Ca--Bonds which are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default
or have other market shortcomings.
C--Bonds which are rated C are the lowest rated class of bonds,
and issues so rated can be regarded as having extremely poor
prospects of ever attaining any real investment standing.
Moody's also supplies numerical indicators 1, 2 and 3 to rating
categories. The modifier 1 indicates that the security is in the
higher end of its rating category; the modifier 2 indicates a
mid-range ranking; and 3 indicates a ranking toward the lower end
of the category.
Standard & Poor's Ratings Group's ("S&P") description of its bond
ratings are:
AAA--The highest degree of safety with overwhelming repayment
capacity.
AA--Very high degree of safety with very strong capacity for
repayment. These issues differ from higher rated issues only in
a small degree.
A--A strong degree of safety and capacity for repayment, but
these issues are somewhat more susceptible in the long term to
adverse economic conditions than those rated in higher
categories.
BBB--A satisfactory degree of safety and capacity for repayment,
but these issues are more vulnerable to adverse economic
conditions or changing circumstances than higher-rated issues.
BB--This designation reflects less near-term vulnerability to
default than other speculative issues. However, the issues face
major ongoing uncertainties or exposures to adverse economic or
financial conditions threatening capacity to meet interest and
principal payments on a timely basis.
B--This designation indicates that the issues have a greater
vulnerability to default but currently have the capacity to meet
interest payments and principal repayments. Adverse business,
financial, or economic conditions will likely impair capacity to
pay interest and repay principal.
CCC--Issues rated CCC have currently identifiable vulnerability
to default, and are dependent upon favorable business, financial,
and economic conditions to meet timely interest and principal
repayments. Adverse business, financial, or economic
developments would render repayment capacity unlikely.
S&P applies indicators "+," no character, and "-" to its rating
categories. The indicators show relative standing within the
major rating categories.
Description of Commercial Paper Ratings
The rating A-1 is the highest commercial paper rating assigned by
S&P. Commercial paper rated A-1 has the following
characteristics: (1) liquidity ratios are adequate to meet cash
requirements; (2) long-term senior debt is rated "A" or better;
(3) the issuer has access to at least two additional channels of
borrowing; (4) basic earnings and cash flow have an upward trend
with allowance made for unusual circumstances; (5) typically, the
issuer's industry is well established and the issuer has a strong
position within the industry; and (6) the reliability and quality
of management are unquestioned. The rating Prime-1 is the
highest commercial paper rating assigned by Moody's. Among the
factors considered by Moody's in assigning ratings are the
following: (1) evaluation of the management of the issuer; (2)
economic evaluation of the issuer's industry or industries and
the appraisal of speculative-type risks which may be inherent in
certain areas; (3) evaluation of the issuer's products in
relation to competition and customer acceptance; (4) liquidity;
(5) amount and quality of long-term debt; (6) trend of earnings
over a period of ten years; (7) financial strength of a parent
company and the relationships which exist with the issuer; and
(8) recognition by the management of obligations which may be
present or may arise as a result of public interest questions and
preparations to meet such obligations.
KIEWIT MUTUAL FUND
1000 Kiewit Plaza
Omaha, NE 68131-3344
Telephone: (800) 2KIEWIT
Investment Advisor
KIEWIT INVESTMENT MANAGEMENT CORP.
1000 Kiewit Plaza
Omaha, NE 68131-3344
Custodian
WILMINGTON TRUST COMPANY
Rodney Square North, 1100 N. Market Street
Wilmington, DE 19890-0001
Administrator and Transfer Agent
RODNEY SQUARE MANAGEMENT CORPORATION
Rodney Square North, 1100 N. Market Street
Wilmington, DE 19890-0001
Distributor
RODNEY SQUARE DISTRIBUTORS, INC.
Rodney Square North, 1100 N. Market Street
Wilmington, DE 19890-0001
KW01
Kiewit Mutual Fund
1000 Kiewit Plaza, Omaha, NE 68131-3344
Telephone: (800) 2KIEWIT
STATEMENT OF ADDITIONAL INFORMATION
September 30, 1996
This statement of additional information is not a
prospectus but should be read in conjunction with the
prospectus of Kiewit Mutual Fund (the "Fund"), dated
September 30, 1996, which can be obtained from the Fund by
writing to the Fund at the above address or by calling the
above telephone number.
TABLE OF CONTENTS
Page
HISTORY 2
INVESTMENT LIMITATIONS AND POLICIES 2
MANAGEMENT OF THE FUND 6
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES 11
BROKERAGE TRANSACTIONS 15
PURCHASE AND REDEMPTION OF SHARES 15
TAX MATTERS 18
CALCULATION OF PERFORMANCE DATA 19
OTHER INFORMATION 27
FINANCIAL STATEMENTS 28
HISTORY
Kiewit Institutional Fund was organized as a Delaware
business trust on June 1, 1994. The name of the trust was
changed to Kiewit Mutual Fund on October 7, 1994.
INVESTMENT LIMITATIONS AND POLICIES
The following information supplements the information
set forth in the prospectus under the caption "Investment
Objectives and Policies."
Fundamental Limitations - All Portfolios
Each of the Portfolios has adopted certain limitations
which may not be changed with respect to any Portfolio without
the approval of a majority of the outstanding voting
securities of the Portfolio. A "majority" is defined as the
lesser of: (1) at least 67% of the voting securities of the
Portfolio (to be affected by the proposed change) present at a
meeting if the holders of more than 50% of the outstanding
voting securities of the Portfolio are present or represented
by proxy, or (2) more than 50% of the outstanding voting
securities of such Portfolio.
The Portfolios will not: (1) as to 75% of the total
assets of a Portfolio, invest in the securities of any issuer
(except obligations of the U.S. Government and its
instrumentalities) if, as a result more than 5% of the
Portfolio's total assets, at market, would be invested in the
securities of such issuer, provided that this restriction
applies to 100% of the total assets of the Kiewit Money Market
Portfolio; (2) borrow, except that a Portfolio may borrow from
banks for temporary or emergency purposes or to pay
redemptions and then, in no event, in excess of 33% of its net
assets and a Portfolio may pledge not more than 33% of such
assets to secure such loans; (3) pledge, mortgage, or
hypothecate any of its assets to an extent greater than 10% of
its total assets at fair market value, except as described in
(2) above; (4) invest more than 15% of the value of the
Portfolio's net assets in illiquid securities which include
certain restricted securities, repurchase agreements with
maturities of greater than seven days, and other illiquid
investments; (5) invest its assets in securities of any
investment company in excess of the limits set forth in the
Investment Company Act of 1940 (the "1940 Act") and rules
thereunder, except in connection with a merger, acquisition of
assets, consolidation or reorganization; (6) acquire any
securities of companies within one industry if, as a result of
such acquisition, more than 25% of the value of the
Portfolio's total assets would be invested in securities of
companies within such industry; (7) engage in the business of
underwriting securities issued by others, except that, in
connection with the disposition of a security, a Portfolio may
be deemed to be an "underwriter" as that term is defined in
the Securities Act of 1933 (the "1933 Act"); (8) purchase or
sell commodities except that each Portfolio may purchase or
sell financial futures contracts and options thereon; (9)
invest in real estate, including limited partnership interests
therein, although they may purchase and sell securities which
deal in real estate and securities which are secured by
interests in real estate; (10) purchase securities on margin
or sell securities short, except that a Portfolio may satisfy
margin requirements with respect to futures transactions; and
(11) make loans, except that this restriction shall not
prohibit (a) the purchase of obligations customarily purchased
by institutional investors, (b) the lending of Portfolio
securities or (c) entry into repurchase agreements.
For the purposes of (4) above, each Portfolio may invest
in commercial paper that is exempt from the registration
requirements of the 1933 Act subject to the requirements
regarding credit ratings stated in the prospectus under
"Investment Objectives And Policies." Further, pursuant to
Rule 144A under the 1933 Act, the Portfolios may purchase
certain unregistered (i.e. restricted) securities upon a
determination that a liquid institutional market exists for
the securities. If it is decided that a liquid market does
exist, the securities will not be subject to the 15%
limitation on holdings of illiquid securities stated in (4)
above. While maintaining oversight, the Board of Trustees has
delegated the day-to-day function of making liquidity
determinations to Kiewit Investment Management Corp. (the
"Manager"). For Rule 144A securities to be considered liquid,
there must be at least one dealer making a market in such
securities. After purchase, the Board of Trustees and the
Manager will continue to monitor the liquidity of Rule 144A
securities. There is no limit on the Portfolios' investment
in Rule 144A securities that are determined to be liquid.
For the purposes of (6) above, (i) utility companies
will be divided according to their services; e.g., gas, gas
transmission, electric and gas, electric, water and telephone
will each be considered a separate industry; and (ii) the
Kiewit Money Market Portfolio may invest more than 25% of the
value of its total assets in obligations of U.S. banks, such
as certificates of deposits, time deposits and bankers'
acceptances. The banks must have total assets exceeding one
billion dollars.
Non-Fundamental Limitations - All Portfolios
The following policies are non-fundamental and may be
changed by the Board of Trustees, without shareholder
approval:
The Portfolios will not: (1) purchase or retain
securities of an issuer if those officers and trustees of the
Fund or officers and directors of an investment adviser owning
more than 1/2 of 1% of such securities together own more than 5%
of such securities; (2) invest for the purpose of exercising
control over management of any company; (3) invest more than
5% of its total assets in securities of companies which have
(with predecessors) a record of less than three years'
continuous operation; (4) write or acquire options (except as
described in fundamental limitation (8) above) or interests in
oil, gas or other mineral exploration, leases or development
programs; (5) purchase warrants; however, each Portfolio may
acquire warrants as a result of corporate actions involving
its holdings of other equity securities; or (6) acquire more
than 10% of the voting securities of any issuer.
Non-Fundamental Policies - Kiewit Bond Portfolios
The following policies are non-fundamental and may be
changed by the Board of Trustees, without shareholder
approval:
The Kiewit Short-Term Government, Kiewit Tax-Exempt and
Kiewit Intermediate-Term Bond Portfolios (each referred to
herein as a "Kiewit Bond Portfolio") may invest in obligations
that permit repayment of the principal amount of the
obligation prior to maturity. Variable and floating rate
obligations are relatively long-term instruments that often
carry demand features permitting the holder to demand payment
of principal at any time or at specified intervals prior to
maturity. Standby commitments, which are similar to a put,
give a Kiewit Bond Portfolio the option to obligate a broker,
dealer or bank to repurchase a security held by a Kiewit Bond
Portfolio at a specified price. Tender option bonds are
relatively long-term bonds that are coupled with the agreement
of a third party (such as a broker, dealer or bank) to grant
the holders of such securities the option to tender the
securities to the institution at periodic intervals. A Kiewit
Bond Portfolio will purchase these types of instruments
primarily for the purpose of increasing the liquidity of its
portfolio.
New issues of bonds are often issued on a "when-issued"
basis, which means that actual payment for the delivery of the
securities generally takes place 15 to 45 days after the
purchase date. During this period, a Kiewit Bond Portfolio
bears the risk that interest rates on debt securities at the
time of delivery may be higher or lower than those contracted
for on the when-issued securities. To alleviate this risk,
each Kiewit Bond Portfolio does not intend to invest more than
5% of its assets in when-issued securities.
A Kiewit Bond Portfolio also may invest up to 5% of its
assets in zero coupon bonds or "strips." Zero coupon bonds do
not make regular interest payments, rather they are sold at a
discount from face value. Principal and accreted discount
(representing interest accrued but not paid) are paid at
maturity. Strips are debt securities that are stripped of
their interest after the securities are issued, but are
otherwise comparable to zero coupon bonds. The market values
of zero coupon bonds and strips generally fluctuate in
response to changes in interest rates to a greater degree than
interest paying securities of comparable term and quality.
The strips in which a Kiewit Bond Portfolio may invest may or
may not be a part of the U.S. Treasury Separately Traded
Registered Interest and Principal Securities program. Each
Kiewit Bond Portfolio may also purchase inverse floaters,
which are instruments whose interest bears an inverse
relationship to the interest rate on another security.
Generally, a Kiewit Bond Portfolio's average maturity
will tend to be shorter when the Manager expects interest
rates to rise and longer when it expects interest rates to
decline.
Portfolio Turnover
The portfolio turnover rates for the fiscal year ended
June 30, 1996, and the annualized portfolio turnover rates for
the period ended June 30, 1995 for the Kiewit Short-Term
Government Portfolio, Kiewit Intermediate-Term Bond Portfolio,
Kiewit Tax-Exempt Portfolio and Kiewit Equity Portfolio were
as follows:
Name June 30, 1996 June 30, 1995
Short-Term Government Portfolio 57.52% 69.57%*
Intermediate-Term Bond Portfolio 86.06% 121.36%*
Tax-Exempt Portfolio 100.61% 92.53%*
Equity Portfolio 16.95% 0.00**
* Annualized, for the period from December 6, 1994 through
June 30, 1995.
** Annualized, for the period from January 5, 1995 through
June 30, 1995.
In the current fiscal year, the portfolio turnover rate of
each of the Kiewit Short-Term Government, Kiewit Intermediate-
Term Bond and Kiewit Tax-Exempt Portfolios is not expected to
exceed 100%. The annual portfolio turnover rate of the Kiewit
Equity Portfolio is not expected to exceed 75%. Generally,
securities held by the Kiewit Equity Portfolio will not be
sold to realize short-term profits, but when circumstances
warrant, they may be sold without regard to the length of time
held. Generally, securities held by the Kiewit Equity
Portfolio will be purchased with the expectation that they
will be held for longer than one year.
MANAGEMENT OF THE FUND
Trustees and Officers
The names, addresses and ages of the trustees and
officers of the Fund and a brief statement or their present
positions and principal occupations during the past five years
is set forth below. Trustees who are deemed to be "interested
persons" as defined in the 1940 Act are indicated by an
asterisk (*).
Richard R. Jaros*
1000 Kiewit Plaza
Omaha, NE 68131-3344
Mr. Jaros, age 44, is a Trustee of the Fund, a Director of the
Manager, Executive Vice President of Peter Kiewit Sons', Inc.
("PKS"), and a Director of PKS, California Energy Company,
Inc., C-TEC Corporation and MFS Communications Company, Inc.
Mr. Jaros also was Chairman (1993-1994) and President and CEO
(1992-1993) of California Energy Company, Inc. and Vice
President of Kiewit Diversified Group Inc. (1989-1990).
Ann C. McCulloch*
1000 Kiewit Plaza
Omaha, NE 68131-3344
Ms. McCulloch, age 38, is Chairman, President and a Trustee of
the Fund, President of the Manager and Vice President and
Treasurer of PKS. From 1989 to 1993, Ms. McCulloch was
Treasurer and Vice President of Central Maine Power in
Augusta, ME.
George Lee Butler*
1000 Kiewit Plaza
Omaha, NE 68131-3344
Mr. Butler, age 57, is a Trustee of the Fund and President of
Kiewit Energy Company. From 1991 to March 1994, Mr. Butler
was Commander-in-Chief of the U.S. Strategic Command and from
1989 to 1994 was Director, Strategic Plans and Policy, for the
U.S. Joint Chiefs of Staff.
Lawrence B. Thomas
One ConAgra Drive
Omaha, NE 68102
Mr. Thomas, age 60, is a Trustee of the Fund and Senior Vice-
President, Corporate Risk Officer and Secretary of ConAgra,
Inc. (a food company). Mr. Thomas previously served as
principal financial officer and Treasurer of ConAgra, Inc.
John J. Quindlen
2205 N. Southwinds Boulevard
Vero Beach, FL 32963
Mr. Quindlen, age 64, is a Trustee of the Fund and each
investment company in the Rodney Square Funds. He retired in
November 1993, after having served as the Senior Vice
President-Finance and Chief Financial Officer of E.I. du Pont
de Nemours and Company, Inc. (diversified chemicals) from 1984
to 1993. He is a director of Atlantic Aviation, Inc. and St.
Joe Paper Co. and a Trustee of Winterthur Museum and Gardens
and Medical Center of Delaware.
P. Greggory Williams
1000 Kiewit Plaza
Omaha, NE 68131-3344
Mr. Williams, age 42, is Chief Financial Officer, Vice
President and Treasurer of the Fund and Chief Investment
Officer and a Vice President of the Manager. From June 1991
to August 1994, Mr. Williams was Vice President-Investments
and Treasurer of Shenandoah Life Insurance Company in Roanoke,
Virginia and from December 1986 to November 1990 was Senior
Vice President and Chief Investment Officer of Jefferson
National Life Insurance Company in Indianapolis, Indiana.
Brian J. Mosher
1000 Kiewit Plaza
Omaha, NE 68131-3344
Mr. Mosher, age 39, is a Vice President of the Fund and a Vice
President of the Manager. From March 1989 to December 1994,
Mr. Mosher served as Investment Manager of Meridian Mutual
Insurance Company in Indianapolis, Indiana.
Kenneth D. Gaskins, Esquire
1000 Kiewit Plaza
Omaha, NE 68131-3344
Mr. Gaskins, age 50, is Secretary of the Fund, Vice President
and Secretary of the Manager and Corporate Counsel of PKS.
Anthony J. Carfang
309 West Washington Street, Suite 1300
Chicago, IL 60606
Mr. Carfang, age 45, is a Vice President of the Fund and
President of Treasury Strategies, Inc., a financial consulting
firm.
The fees and expenses of the Trustees who are not
"interested persons" of the Fund ("Independent Trustees"),
as defined in the 1940 Act, are paid by each Portfolio. For
the fiscal year ended June 30, 1996, such fees amounted to
$25,000 for the Fund. The following table shows the fees
paid during the fiscal year to the Independent Trustees for
their service to the Fund. On August 31, 1996 the Trustees
and officers of the Fund, as a group, owned beneficially, or
may be deemed to have owned beneficially, less than 1% of
the outstanding shares of the Portfolios.
Trustees Fees
<TABLE>
<CAPTION>
Short- Intermediate- Tax-
Money Term Term Exempt Total Fees
Market Government Bond Bond Equity from
Portfolio Portfolio Portfolio Portfolio Portfolio the Fund
Independent Trustee
<S> <C> <C> <C> <C> <C> <C>
John J. Quindlen $2,500 $2,500 $2,500 $2,500 $2,500 $12,500
Lawrence B. Thomas $2,500 $2,500 $2,500 $2,500 $2,500 $12,500
</TABLE>
Investment Manager
Each investment management agreement is in effect for a
period of two years. Thereafter, each agreement may continue
in effect for successive annual periods, provided such
continuance is specifically approved at least annually by a
vote of the Fund's Board of Trustees or, by a vote of the
holders of a majority of any Portfolio's outstanding voting
securities, and in either event by a majority of the Trustees
who are not parties to the agreement or interested persons of
any such party (other than as Trustees of the Fund), cast in
person at a meeting called for that purpose. An investment
management agreement may be terminated without penalty at any
time by the Portfolio or by the Manager on 60 days' written
notice and will automatically terminate in the event of its
assignment as defined in the 1940 Act. Pursuant to the
investment management agreements, the Manager's fees for the
fiscal year ended June 30, 1996, and the period ended June 30,
1995 would have been the following:
Name 1996 1995
Money Market Portfolio $843,989 $436,236
Short-Term Government Portfolio 492,172 332,931
Intermediate-Term Bond Portfolio 499,823 331,508
Tax-Exempt Portfolio 563,114 624,955
Equity Portfolio 354,646 35,890
The Manager has agreed to waive all or a portion of its
advisory fee and assume certain expenses to not more than the
following percentage of the average daily net assets of each
Portfolio: Kiewit Money Market Portfolio - .20%; Kiewit
Short-Term Government Portfolio - 30%; Kiewit Intermediate-
Term Bond Portfolio - 50%; Kiewit Tax- Exempt Portfolio - 50%;
and Kiewit Equity Portfolio - 80%. This undertaking, which is
not contained in the investment management agreements, may be
amended or rescinded in the future. During the fiscal year
ended June 30, 1996 and the period ended June 30, 1995, the
Manager waived the following amounts to the Portfolios:
Name 1996 1995
Money Market Portfolio $298,011 $70,100
Short-Term Government Portfolio 219,505 92,745
Intermediate-Term Bond Portfolio 86,597 117,862
Tax-Exempt Portfolio 57,267 121,067
Equity Portfolio 126,289 90,032
Distributor
Rodney Square Distributors, Inc. ("RSD") serves as the
Distributor of each Portfolio's shares pursuant to a
Distribution Agreement with the Fund. Under the terms of the
Distribution Agreement, RSD agrees to assist in securing
purchasers for shares of the Portfolios. RSD will receive no
compensation for distribution of shares of the Portfolios,
except for reimbursement of out-of-pocket expenses.
The Distribution Agreement provides that RSD, in the
absence of willful misfeasance, bad faith or gross negligence
in the performance of its duties or by reason of reckless
disregard of its obligations and duties under the agreement,
will not be liable to the Fund or its shareholders for losses
arising in connection with the sale of Portfolio shares.
The Distribution Agreement, dated November 15, 1994,
continues in effect from year to year as long as its
continuance is approved at least annually by a majority of the
Trustees, including a majority of the Independent Trustees.
The Distribution Agreement terminates automatically in the
event of its assignment. The Agreement is also terminable
without payment of any penalty with respect to each Portfolio
either (i) by the Fund (by vote of a majority of the
Independent Trustees or by vote of a majority of the
outstanding voting securities of the Fund) on sixty (60) days'
written notice to RSD; or (ii) by RSD on sixty (60) days'
written notice to the Fund.
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
As of August 30, 1996, the following shareholders were
known to own of record more than 5% of the total outstanding
shares of the Money Market Portfolio:
Name and Address Percentage Ownership
Kiewit Diversified Holdings Inc. 18.21%
One Thousand Kiewit Plaza
Omaha, NE 68131
Kiewit Coal Properties Inc. 11.31%
One Thousand Kiewit Plaza
Omaha, NE 68131
Kiewit Construction Company 9.90%
One Thousand Kiewit Plaza
Omaha, NE 68131
MFS Communications Company Inc. 9.15%
11808 Miracle Hills Drive
Omaha, NE 68154
As of August 30, 1996, the following shareholders were known to own of record
more than 5% of the total outstanding shares of the Short-Term Government
Portfolio:
Name and Address Percentage Ownership
Peter Kiewit Sons', Inc. 32.16%
One Thousand Kiewit Plaza
Omaha, NE 68131
Kiewit Coal Properties, Inc. 16.46%
One Thousand Kiewit Plaza
Omaha, NE 68131
California Corridor Constructors, 12.24%
A Joint Venture
One Thousand Kiewit Plaza
Omaha, NE 68131
Kiewit Diversified Group Inc. 8.21%
One Thousand Kiewit Plaza
Omaha, NE 68131
Kiewit Diversified Holdings, Inc. 6.57%
One Thousand Kiewit Plaza
Omaha, NE 68131
Bank of America NT&SA 6.07%
as Collateral Agent FBO Secured Parties
One Thousand Kiewit Plaza
Omaha, NE 68131
Continental Holdings, Inc. 5.47%
One Thousand Kiewit Plaza
Omaha, NE 68131
Northern Trust Company as Trustee 5.01%
For Continental Kiewit Inc. Pension Plan
One Thousand Kiewit Plaza
Omaha, NE 68131
As of August 30, 1996, the following shareholders were known to own of record
more than 5% of the total outstanding shares of the Intermediate-Term Bond
Portfolio:
Name and Address Percentage Ownership
Continental Holdings Inc. 25.08%
One Thousand Kiewit Plaza
Omaha, NE 68131
Peter Kiewit Sons Co. 24.97%
One Thousand Kiewit Plaza
Omaha, NE 68131
Decker Coal Reclamation 12.82%
One Thousand Kiewit Plaza
Omaha, NE 68102
Northern Trust Company Trustee 12.73%
For Continental Kiewit Inc.
Pension Plan
One Thousand Kiewit Plaza
Omaha, NE 68131
Kiewit Diversified Holdings, Inc. 9.96%
One Thousand Kiewit Plaza
Omaha, NE 68131
Gilbert Texas Construction Corp. 7.56%
One Thousand Kiewit Plaza
Omaha, NE 68131
As of August 30, 1996, the following shareholders were known to own of record
more than 5% of the total outstanding shares of the Tax-Exempt Portfolio:
Name and Address Percentage Ownership
KMI Continental Lease 1 Inc. 93.89%
One Thousand Kiewit Plaza
Omaha, NE 68131
Global Surety & Insurance Co. 6.02%
One Thousand Kiewit Plaza
Omaha, NE 68131
As of August 30, 1996, the following shareholders were known to own of record
more than 5% of the total outstanding shares of the Equity Portfolio:
Name and Address Percentage Ownership
Northern Trust Company as Trustee 32.84%
For Continental Kiewit Inc.
Pension Plan
One Thousand Kiewit Plaza
Omaha, NE 68131
Decker Coal Reclamation 24.57%
One Thousand Kiewit Plaza
Omaha, NE 68102
Wilmington Trust Co. as Trustee 21.56%
For Kiewit Construction Group
Retirement Savings Plan
1100 N. Market Street
Wilmington, DE 19890
Kiewit Diversified Group Inc. 8.60%
One Thousand Kiewit Plaza
Omaha, NE 68131
Wilmington Trust Co. as Trustee 6.52%
For Decker Coal Company Pension Plan
1100 N. Market Street
Wilmington, DE 19890
Peter Kiewit Sons', Inc., a Delaware corporation with
principal offices at 1000 Kiewit Plaza, Omaha, NE 68131, is
the direct or indirect parent of shareholders of more than
25% of the voting securities of each Portfolio and therefore
may be deemed to control each Portfolio.
BROKERAGE TRANSACTIONS
Portfolio transactions will be placed with a view to
receiving the best price and execution. The Portfolios will
seek to acquire and dispose of securities in a manner which
would cause as little fluctuation in the market prices of
stocks being purchased or sold as possible in light of the
size of the transactions being effected, and brokers will be
selected with this goal in view. The Manager monitors the
performance of brokers which effect transactions for each
Portfolio to determine the effect that the Portfolio's trading
has on the market prices of the securities in which they
invest. Transactions also may be placed with brokers who
provide the Manager with investment research, such as reports
concerning individual issuers, industries and general economic
and financial trends and other research services. Each
Investment Management Agreement permits the Manager knowingly
to pay commissions on such transactions which are greater than
another broker might charge if the Manager, in good faith,
determines that the commissions paid are reasonable in
relation to the research or brokerage services provided by the
broker or dealer when viewed in terms of either a particular
transaction or the Manager's overall responsibilities to the
Fund. During the fiscal year ended June 30, 1996 the Kiewit
Short-Term Government Portfolio, the Kiewit Intermediate-Term
Bond Portfolio and the Kiewit Tax-Exempt Portfolio paid no
brokerage commissions. The Kiewit Equity Portfolio paid
$82,485 in brokerage commissions for the fiscal year ended
June 30, 1996 and $34,515 for the period ended June 30, 1995.
PURCHASE AND REDEMPTION OF SHARES
The Fund reserves the right, in its sole discretion, to
suspend the offering of shares of any or all Portfolios or
reject purchase orders when, in the judgment of management,
such suspension or rejection is in the best interest of the
Fund or a Portfolio. Securities accepted in exchange for
shares of a Portfolio will be acquired for investment purposes
and will be considered for sale under the same circumstances
as other securities in the Portfolio.
The Fund may suspend redemption privileges or postpone
the date of payment: (1) during any period when the New York
Stock Exchange (the "NYSE") is closed, or trading on the NYSE
is restricted as determined by the Securities and Exchange
Commission (the "SEC"), (2) during any period when an
emergency exists as defined by the rules of the SEC as a
result of which it is not reasonably practicable for the Fund
to dispose of securities owned by it, or fairly to determine
the value of its assets and (3) for such other periods as the
SEC may permit.
The valuation of the securities held by the Kiewit Money
Market Portfolio (including any securities held in a separate
account maintained for when-issued securities) is based upon
their amortized costs which does not take into account
unrealized capital gains or loses. This involves valuing an
instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium,
regardless of the impact of fluctuating interest rates on the
market value of the instrument. While this method provides
certainty in valuation, it may result in periods during which
value, as determined by amortized cost, is higher or lower
than the price the Portfolio would receive if it sold the
instrument. During periods of declining interest rates, the
daily yield on shares of the Portfolio computed as described
above may tend to be higher than a like computation made by a
fund with identical investments utilizing a method of
valuation based upon market prices and estimates of market
prices for all of its portfolio instruments. Thus, if the use
of amortized cost by the Portfolio resulted in a lower
aggregate portfolio value on a particular day, a prospective
investor in the Portfolio would be able to obtain a somewhat
higher yield than would result from investment in a fund
utilizing solely market values, and existing investors in the
Portfolio would receive less investment income. The converse
would apply in a period of rising interest rates.
The Kiewit Money Market Portfolio's use of amortized
cost which facilitates the maintenance of the Portfolio's per
share net asset value of $1.00 is permitted by a rule adopted
by the SEC, pursuant to which the Portfolio must adhere to
certain conditions.
The Kiewit Money Market Portfolio must maintain a
dollar-weighted average portfolio maturity of 90 days or less,
only purchase instruments having remaining maturities of 397
calendar days or less, and invest only in those U.S. dollar-
denominated instruments that the Manager has determined,
pursuant to guidelines adopted by the Board of Trustees,
present minimal credit risks and which are, as required by the
federal securities laws (i) rated in one of the two highest
rating categories as determined by nationally recognized
statistical rating agencies, (ii) instruments deemed
comparable in quality to such rated instruments, or (iii)
instruments, the issuers of which, with respect to an
outstanding issue of short-term debt that is comparable in
priority and protection, have received a rating within the two
highest categories of nationally recognized statistical rating
agencies. Securities subject to floating or variable interest
rates with demand features in compliance with applicable rules
of the SEC may have stated maturities in excess of 397 days.
The Trustees have established procedures designed to
stabilize, to the extent reasonably possible, the Portfolio's
price per share as computed for the purpose of sales and
redemptions at $1.00. Such procedures will include review of
the portfolio holdings by the Trustees, at such intervals as
they may deem appropriate, to determine whether the
Portfolio's net asset value calculated by using available
market quotations deviates from $1.00 per share based on
amortized cost. The extent of any deviation will be examined
by the Trustees. If such deviation exceeds 1/2 of 1%, the
Trustees will promptly consider what action, if any, will be
initiated. In the event the Trustees determine that a
deviation exists which may result in material dilution or
other unfair results to investors or existing shareholders,
they will take such corrective action as they regard as
necessary and appropriate, which may include the sale of
portfolio instruments prior to maturity to realize capital
gains or losses or to shorten average portfolio maturity,
withholding dividends, redemptions of shares in kind, or
establishing a net asset value per share by using available
market quotations.
In-Kind Purchases. If accepted by the Fund, shares of the
Portfolios may be purchased in exchange for securities which
are eligible for acquisition by the Portfolios as described
in this Statement of Additional Information. Please contact
Rodney Square about this purchase method. Securities to be
exchanged which are accepted by the Fund and Portfolio
shares to be issued therefore will be valued, as set forth
under "Valuation Of Shares," at the time of the next
determination of net asset value after such acceptance. All
dividends, interest, subscription, or other rights
pertaining to such securities shall become the property of
the Portfolio whose shares are being acquired and must be
delivered to the Fund by the investor upon receipt from the
issuer.
The Fund will not accept securities in exchange for
shares of a Portfolio unless: (1) current market quotations
are readily available for such securities; (2) the investor
represents and agrees that all securities offered to be
exchanged are not subject to any restrictions upon their
sale by the Portfolio under the 1933 Act or under the laws
of the country in which the principal market for such
securities exists, or otherwise; (3) at the discretion of
the Portfolio, the value of any such security (except U.S.
Government securities) being exchanged together with other
securities of the same issuer owned by the Portfolio will
not exceed 5% of the net assets of the Portfolio immediately
after the transaction; and (4) the Portfolio acquires the
securities for investment and not for resale. In addition,
nearly all of the securities accepted in an exchange must
be, at the time of the exchange, eligible to be included in
the Portfolio whose shares are issued. Investors interested
in such exchanges should contact the Manager.
TAX MATTERS
The Internal Revenue Code of 1986, as amended (the
"Code") imposes a nondeductible 4% excise tax on a regulated
investment company which does not distribute to investors in
each calendar year an amount equal to (i) 98% of its
calendar year ordinary income, (ii) 98% of its capital gain
net income (the excess of short and long-term capital gain
over short and long-term capital loss) for the one-year
period ending each October 31, and (iii) 100% of any
undistributed ordinary income and capital gain net income
from the prior year. Each Portfolio intends to declare and
pay dividends and capital gain distributions in a manner to
avoid imposition of the excise tax. Each Portfolio also
intends to comply with other Code requirements such as (1)
appropriate diversification of portfolio investments; (2)
realization of 90% of annual gross income from dividends,
interest, gains from sales of securities, or other
"qualifying income," and (3) realization of less than 30% of
gross income from gains on sale or other disposition of
securities held less than three months.
For any Portfolio that has a principal investment
policy of investing in non-equity investments, it is
anticipated that either none or only a small portion of that
Portfolio's dividends will qualify for the corporate
dividends received deduction. The portion of the dividends
so qualified depends on the aggregate qualifying dividend
income received by a Portfolio from domestic (U.S.) sources.
To the extent that any Portfolio pays dividends which
qualify for this deduction, the availability of the
deduction is subject to certain holding period and debt
financing restrictions imposed under the Code on the
corporation claiming the deduction.
The Fund in its sole discretion may accept securities
in exchange for shares of a Portfolio. A gain or loss for
federal income tax purposes may be realized by investors in
a Portfolio who are subject to federal taxation upon the
exchange. The amount of such gain or loss realized with
respect to a security is measured by the difference between
the fair market value of the contributed security on the
date of contribution and its adjusted tax basis. Any loss
realized on the exchange may be subject to certain
provisions of the Code which either disallow the recognition
of any such loss or result in a deferral of the time for
recognizing such loss.
CALCULATION OF PERFORMANCE DATA
The performance of a Portfolio may be quoted in terms of
its yield and its total return in advertising and other
promotional materials ("performance advertisements").
Performance data quoted represents past performance and is not
intended to indicate future performance. The investment return
of an investment in the Portfolios and the principal value of
an investment in any Portfolio except the Money Market
Portfolio will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
Performance of the Portfolios will vary based on changes in
market conditions and the level of each Portfolio's expenses.
These performance figures are calculated in the following
manner:
A. Yield is the net annualized yield for a specified
7 calendar days calculated at simple interest
rates. From time to time the Money Market
Portfolio may advertise its yield. Yield is
calculated by determining the net change,
exclusive of capital changes, in the value of a
hypothetical pre-existing account having a balance
of one share at the beginning of the period,
subtracting a hypothetical charge reflecting
deductions from shareholder accounts, and dividing
the difference by the value of the account at the
beginning of the base period to obtain the base
period return. The yield is annualized by
multiplying the base period return by 365/7. The
yield figure is stated to the nearest hundredth of
one percent.
The yield for the 7-day period ended June 30, 1996
was 5.22% for the Money Market Portfolio.
B. Effective Yield is the net annualized yield for a
specified 7 calendar days assuming reinvestment of
income or compounding. From time to time the
Money Market Portfolio may advertise its effective
yield. Effective yield is calculated by the same
method as yield except the yield figure is
compounded by adding 1, raising the sum to a power
equal to 365 divided by 7, and subtracting 1 from
the result, according to the following formula:
Effective Yield = [(Base Period Return + 1) 365/7]
- - 1.
The effective yield for the 7-day period ended
June 30, 1996 was 5.37% for the Money Market
Portfolio.
C. Tax-Equivalent Yield is the rate an investor would
have to earn from a fully taxable investment after
taxes to equal a Portfolio's tax-exempt yield.
From time to time, the Tax-Exempt Portfolio may
advertise its tax-equivalent yield. Tax-
equivalent yield is computed by: (i) dividing that
portion of a Portfolio's yield which is tax-exempt
by one minus a stated income tax rate; and (ii)
adding the product of that portion, if any, of the
Portfolio's yield that is not tax-exempt. For
purposes of this formula, tax-exempt yield is a
yield which is exempt from federal income tax.
The following table, which is based upon federal income
tax rates in effect on the date of this Statement of
Additional Information, illustrates the yields that would
have to be achieved on taxable investments to produce a
range of hypothetical tax-equivalent yields:
Tax-Equivalent Yield Table
Federal
Marginal Tax-Equivalent Yields Based on Tax-Exempt Yields of:
Income Tax
Bracket
4% 5% 6% 7% 8% 9% 10% 11%
28% 5.6 6.9 8.3 9.7 11.1 12.5 13.9 15.3
31% 5.8 7.2 8.7 10.1 11.6 13.0 14.5 15.9
36% 6.3 7.8 9.4 10.9 12.5 14.1 15.6 17.2
39.6% 6.6 8.3 9.9 11.6 13.2 14.9 16.6 18.2
D. Yield of the Short-Term Government Portfolio,
Intermediate-Term Bond Portfolio, and the Tax-
Exempt Portfolio is calculated by dividing the
Portfolio's investment income for a 30-day period,
net of expenses, by the average number of shares
entitled to receive dividends during that period
according to the following formula:
YIELD = 2[((a-b)/cd + 1)6-1]
Where:
a = dividends and interest earned during
the period;
b = expenses accrued for the period (net
of reimbursements);
c = the average daily number of shares
outstanding during the
period that were entitled to receive
dividends; and
d = the maximum offering price per share
on the last day of the period.
The result is expressed as an annualized percentage
(assuming semiannual compounding) of the maximum offering
price per share at the end of the period.
Except as noted below, in determining interest earned
during the period (variable "a" in the above formula), the
interest earned on each debt instrument held by a Portfolio
during the period is calculated by: (i) computing the
instrument's yield to maturity, based on the value of the
instrument (including actual accrued interest) as of the
last business day of the period or, if the instrument was
purchased during the period, the purchase price plus accrued
interest; (ii) dividing the yield to maturity by 360; and
(iii) multiplying the resulting quotient by the value of the
instrument (including actual accrued interest). Once
interest earned is calculated in this fashion for each debt
instrument held by the Portfolio, interest earned during the
period is then determined by totaling the interest earned on
all debt instruments held by the Portfolio.
For purposes of these calculations, the maturity of a
debt instrument with one or more call provisions is assumed
to be the next date on which the instrument reasonably can
be expected to be called or, if none, the maturity date. In
general, interest income is reduced with respect to debt
instruments trading at a premium over their par value by
subtracting a portion of the premium from income on a daily
basis, and increased with respect to debt instruments
trading at a discount by adding a portion of the discount to
daily income.
For the 30-day period ended June 30, 1996, the yields
for the Short-Term Government Portfolio, Intermediate-Term
Bond Portfolio and the Tax-Exempt Portfolio were 5.99%,
6.56% and 4.47%, respectively.
Since yield accounting methods differ from the
accounting methods used to calculate net investment income
for other purposes, a Portfolio's yield may not equal the
dividend income actually paid to investors or the net
investment income reported with respect to the Portfolio in
the Fund's financial statements.
Yield information may be useful in reviewing a
Portfolio's performance and in providing a basis for
comparison with other investment alternatives.
Nevertheless, the Portfolios' yields fluctuate, unlike
investments that pay a fixed interest rate over a stated
period of time. Investors should recognize that in periods
of declining interest rates, the Portfolios' yields will
tend to be somewhat higher than prevailing market rates, and
in periods of rising interest rates, the Portfolios' yields
will tend to be somewhat lower. Also, when interest rates
are falling, the inflow of net new money to the Portfolios
from the continuous sale of their shares will likely be
invested in instruments producing lower yields than the
balance of the Portfolios' holdings, thereby reducing the
current yields of the Portfolios. In periods of rising
interest rates, the opposite can be expected to occur.
E. Average Annual Total Return is the average annual
compound rate of return for the periods of one
year, five years, ten years and the life of a
Portfolio, where quotations reflect changes in the
price of a Portfolio's shares, if any, and assume
that all dividend and capital gains distributions,
if any, during the respective periods were
reinvested in Portfolio shares. Each Portfolio
may advertise its average annual total return from
time to time. Average annual total return is
calculated by finding the average annual compound
rates of return of a hypothetical investment over
such periods, according to the following formula
(average annual total return is then expressed as
a percentage):
T = (ERV/P)1/n - 1
Where: P = a hypothetical initial
investment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value: ERV
is the value, at the end of the applicable period, of a
hypothetical $1,000 investment made at the beginning of the
applicable period.
Average Annual Total Returns for the one-year
period ended June 30, 1996 and for the periods
from the effective date of the Fund's registration
statement under the Securities Act of 1933 or
commencement of operations1, whichever occured
later, through June 30, 1996:
1 year ended Since Effectiveness 1
June 30, 1996 through June 30, 1996
Money Market Portfolio 5.61% 5.71%
Short-Term Government Portfolio 4.66% 6.96%
Intermediate-Term Bond Portfolio 4.48% 8.40%
Tax-Exempt Portfolio 4.55% 6.59%
Equity Portfolio 19.24% 21.70%
1 The Money Market Portfolio, Short-Term
Government Portfolio, Intermediate-Term Bond
Portfolio and Tax-Exempt Portfolio became
effective on December 6, 1994. The Equity
Portfolio commenced operations on January 5,
1995.
F. Cumulative Total Return is the cumulative rate of
return on a hypothetical initial investment of
$1,000 for a specified period. Cumulative total
return quotations reflect the change in the price
of a Portfolio's shares, if any, and assume that
all dividends and capital gains distributions, if
any, during the period were reinvested in
Portfolio shares. Cumulative total return is
calculated by finding the cumulative rates of
return of a hypothetical investment over such
periods, according to the following formula
(cumulative total return is then expressed as a
percentage):
C = (ERV/P) - 1
Where: C = Cumulative Total Return
P = a hypothetical initial
investment of $1,000
ERV = ending redeemable value: ERV
is the value, at the end of the applicable period, of a
hypothetical $1,000 investment made at the
beginning of the applicable period.
Cumulative Total Returns for the one-year period
ended June 30, 1996 and for the periods from the
effective date of the Fund's registration
statement under the Securities Act of 1933 or
commencement of operations1 , whichever occured
later, through June 30, 1996:
1 year ended Since Effectiveness 1
June 30, 1996 through June 30, 1996
Money Market Portfolio 5.61% 9.11%
Short-Term Government Portfolio 4.66% 11.13%
Intermediate-Term Bond Portfolio 4.48% 13.50%
Tax-Exempt Portfolio 4.55% 10.54%
Equity Portfolio 19.24% 33.93%
1 The Money Market Portfolio, Short-Term Government
Portfolio, Intermediate-Term Bond Portfolio and
Tax-Exempt Portfolio became effective on
December 6, 1994. The Equity Portfolio
commenced operations on January 5, 1995.
The preceding performance figures were affected by fee
waivers and expenses assumed by the Portfolios' investment
manager. Without such fee waivers and expense assumptions,
the performance figures quoted above would have been lower.
The Portfolios may also from time to time present some
or all of their investments ranked by their percentage
representation within the respective Portfolio or in the
form of the schedule of "Investments" included in the
Annual Report to the shareholders of the Portfolios as of
and for the fiscal year ended June 30, 1996, a copy of which
follows and is part of this document.
Performance advertisements for the Money Market
Portfolio may include yield calculations for the 7-day period
ending on the most recent practicable date considering the
media used for the advertisement. Performance advertisements
for the other four Portfolios may include average annual total
returns and 30-day yield calculations as of the end of the
most recent quarter practicable considering the media used
for the advertisement. Such advertisements may include a
schedule of investments for the corresponding date, employing
presentation principles used in annual reports to
shareholders.
To help investors better evaluate how an investment in
a Portfolio might satisfy their investment objective,
advertisements regarding a Portfolio may discuss yield or
total return as reported by various financial publications.
Advertisements may also compare yield or total return to
other investments, indices and averages. The following
publications, benchmarks, indices, and averages may be used:
Lipper Mutual Fund Performance Analysis; Lipper Fixed Income
Analysis; Lipper Mutual Fund Indices; Salomon Brothers
Indices; Lehman Brothers Indices; Dow Jones Composite
Average or its component indices; Standard & Poor's 500
Composite Stock Price Index (the "S & P 500") or its
component indices; The New York Stock Exchange composite or
component indices; CDA Mutual Fund Report; Weisenberger -
Mutual Fund Panorama and Investment Companies; Mutual Fund
Values and Mutual Fund Service Book, published by
Morningstar, Inc.; and financial publications such as
Business Week, Kiplinger's Personal Finance, Financial
World, Forbes, Fortune, Money Magazine, The Wall Street
Journal, Barron's, et al., which rate mutual fund
performance over various time periods.
Currently the performance of the Kiewit Money Market
Portfolio may be compared to the performance of IBC's Money
Fund Average. The IBC's Money Fund Average is a composition
of all reporting money market funds with similar objectives
and restrictions. The Kiewit Short-Term Government
Portfolio is currently compared to the Lehman 1-3 Year
Government Index. 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 Kiewit Intermediate-Term Bond
Portfolio is currently compared to the Lehman Intermediate
Corporate Index. 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 Kiewit Tax-Exempt
Portfolio is currently compared to the 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 Kiewit Equity
Portfolio is currently compared to the S & P 500. The S & P
500 is an unmanaged capitalization weighted index of five
hundred publicly traded stocks.
OTHER INFORMATION
The Fund does not intend to hold annual meetings; it
may, however, hold a meeting for such purposes as changing
fundamental investment limitations, approving a new investment
management agreement or any other matters which are required
to be acted on by shareholders under the 1940 Act.
Shareholders may receive assistance in communicating with
other shareholders in connection with the election or removal
of Trustees similar to the provisions contained in Section
16(c) of the 1940 Act.
Wilmington Trust Company, Rodney Square North, 1100
North Market Street, Wilmington, DE 19890-0001, a Delaware-
chartered banking institution, is the Fund's Custodian.
Price Waterhouse LLP, Thirty South 17th Street,
Philadelphia, Pennsylvania 19103, is the Fund's independent
accountant.
KIEWIT MUTUAL FUND
MONEY MARKET PORTFOLIO
SHORT-TERM GOVERNMENT PORTFOLIO
INTERMEDIATE-TERM BOND PORTFOLIO
TAX-EXEMPT PORTFOLIO
EQUITY PORTFOLIO
KIEWIT
KMF
MUTUAL FUND
ANNUAL REPORT
JUNE 30, 1996
Kiewit
KMF
Mutual Fund
Dear Shareholder:
The management of Kiewit Mutual Fund is pleased to report to you
on the Fund's activity for the fiscal year ended June 30, 1996.
The investment results reported in the charts contained in this
letter are measured from December 6, 1994 (the date the Fund's
registration statement under the Securities Act of 1933 became
effective), except for the Kiewit Equity Portfolio which commenced
operations on January 5, 1995. However, the portions of the annual
report following this letter show the financial operation, condition
and results of each Portfolio from inception through the fiscal year
ended June 30, 1996.*
Investment Results**
The Money Market Portfolio's total return for the fiscal year
ended June 30, 1996 was 5.61%. That return consisted of income
distributions (dividends) of $0.05 per share. The Portfolio's
return compares favorably with the 5.28% total return reported
for Donoghue's Money Market Fund Average over the same period.
The Short-Term Government Portfolio's total return for the
fiscal year was 4.66%. That return consisted of a decrease in
net asset value of $0.03 per share (decreasing from $2.03 to
$2.00) and income distributions (dividends) of $0.12 per share.
The Portfolio's return falls short of the 5.48% 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. Following is a chart that represents
the performance of the Portfolio and the unmanaged Lehman 1-3
Year Government Index since the Portfolio's effective date
on December 6, 1994 through the end of June 1996.
* The Money Market Portfolio commenced operations on July
28, 1994; the Short-Term Government Portfolio commenced operations
on July 29, 1994; the Intermediate-Term Bond Portfolio and
the Tax-Exempt Portfolio each commenced operations on July
25, 1994; and the Equity Portfolio commenced operations on
January 5, 1995.
** 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 Portfolios'
expenses. See Financial Highlights on pages 11, 18, 25, 34 and
40.
Comparison of Change in Value of $10,000 Investment***
- ---------------------------------------------------
[Insert graph]
12-6-94 6-30-95 6-30-96
------- ------- -------
Kiewit Short-Term Government Portfolio 10,000 10,618 11,113
Lehman 1-3 Year Government Index 10,000 10,679 11,265
Avg. Annual Total Return
Effective
1 Year Date
------ --------
Fund 4.66% 6.96%
Index 5.48% 7.88%
*** Past performance is not predictive of future results.
The Intermediate-Term Bond Portfolio's total return for the
fiscal year was 4.48%. That return consisted of a decrease in
net asset value of $0.04 per share (decreasing from $2.05 to $2.01)
and income distributions (dividends) of $0.13 per share. The
Portfolio's return falls short of the 5.33% 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. Below is a chart that represents the performance
of the Portfolio and the unmanaged Lehman Intermediate Corporate
Index since the Portfolio's effective date on December 6, 1994
through the end of June 1996.
Comparison of Change in Value of $10,000 Investment***
- ---------------------------------------------------
[Insert graph]
12-6-94 6-30-95 6-30-96
------- ------- -------
Kiewit Intermediate-Term Bond 10,000 10,863 11,350
Lehman Intermediate Corporate Index 10,000 11,248 11,847
Avg. Annual Total Return
Effective
1 Year Date
------ --------
Fund 4.48% 8.40%
Index 5.33% 11.40%
*** Past performance is not predictive of future results.
The Tax-Exempt Portfolio's total return for the fiscal year
was 4.55%. That return consisted of income distributions (dividends)
of $0.09 per share. The Portfolio's return falls short of the
5.05% 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. Below is a chart that represents the
performance of the Portfolio and the unmanaged Lehman 5-Year
Municipal Bond Index since the Portfolio's effective date on
December 6, 1994 through the end of June 1996.
Comparison of Change in Value of $10,000 Investment***
- ---------------------------------------------------
[Insert graph]
12-6-94 6-30-95 6-30-96
------- ------- -------
Kiewit Tax-Exempt Portfolio 10,000 10,573 11,054
Lehman 5-Year Municipal Bond Index 10,000 10,804 11,350
Avg. Annual Total Return
Effective
1 Year Date
------ --------
Fund 4.55% 6.59%
Index 5.05% 8.40%
*** Past performance is not predictive of future results.
The Equity Portfolio's total return for the fiscal year
was 19.24%. That return consisted of an increase in net asset
value per share of $2.54 (increasing from $14.04 to $16.58)
and income distributions (dividends) of $0.15 per share. The
Portfolio's return falls short of the 26% 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. Below is a chart that
represents the performance of the Portfolio and S&P 500 since
the Portfolio's inception on January 5, 1996.
Comparison of Change in Value of $10,000 Investment***
- ---------------------------------------------------
[Insert graph]
1-5-95 6-30-95 6-30-96
------- ------- -------
Kiewit Equity Portfolio 10,000 11,232 13,393
S&P 500 Index 10,000 11,980 15,095
Avg. Annual Total Return
Effective
1 Year Date
------ --------
Fund 19.24% 21.70%
Index 26.00% 31.89%
*** Past performance is not predictive of future results.
Please note that the Lehman indices and S&P 500 are
unmanaged statistical compilations, and unlike the Kiewit
Portfolios have no associated expenses.
As of July 1, 1996, Kiewit Investment Management Corp.
("KIM"), the investment manager of each Portfolio, agreed to
continue its support of the Portfolios' returns by waiving all
or a portion of its advisory fee and assuming certain Fund
expenses in an amount that will limit annual operating expenses
to not more than the following percentages of the average daily
net assets of the Portfolios: Money Market Portfolio - .20%;
Short-Term Government Portfolio - .30%; Intermediate-Term Bond
Portfolio - .50%; Tax-Exempt Portfolio - .50% and Equity Portfolio
- .80%. These limitations aided the competitive returns of
each Portfolio.
Market Review and Preview
Since the issuance of our semi-annual report for the
period ended December 31, 1995, the financial markets have
experienced considerable volatility. As we exited 1995, concern
about possible softness in the economy had some market observers
expecting additional Federal Reserve Board (the "Fed") easing
of short-term interest rates. Others believed that the Fed would
wait several months to see the effect on the economy of its
1995 rate cuts before considering further action to stimulate
the economy. Adding to the uncertainty was the unknown magnitude
of the negative impacts of the severe winter weather in much of
the U.S. during the first quarter, along with the temporary
government shut-down caused by the stalemate between the
legislative and the executive branches of the Federal
government. Many viewed these two events as random shocks,
the type the Fed had frequently ignored in the past when
setting monetary policy. Would the Fed choose to ignore
those events this time?
Market volatility was compounded by the apparent death
of the proposed balanced budget. During late 1995 and early
1996, fixed income investors had been bullish on bonds due
to the belief that significant spending restraint (and
therefore less future borrowing) would be imposed on the
Federal Government as Congress tried to force a balanced
budget by early in the next millennium. As it became apparent
that the chances of that happening were remote, intermediate-
and long-term rates started moving upward. Investor
enthusiasm over a balanced budget had moved rates below
sustainable levels, and higher rates were inevitable when
that enthusiasm dissipated.
As the second quarter unfolded and the results of the
economy's performance in the first quarter were released,
the numbers proved to be stronger than expected. This data
was accompanied by strong upward moves in the price of gold
and oil, two barometers frequently watched for signs of future
price trends. Immediately, market participants stopped debating
when the next Fed easing would take place and started debating
how quickly the Fed would move to raise interest rates. This
caused intermediate and long-term interest rates to rise even
further as it appeared that the increase earlier in the year was
not just a temporary detour on the path to lower rates but
rather a new path altogether - one leading to higher rates
for the foreseeable future. The net effect was a bond market
that reminded investors of 1994 as the market suffered
another one of its worst six month performances in market
history. Bondholders saw major price declines, steep enough
to more than offset coupon income, giving many investors
negative total returns for the first six months of the year.
Surprisingly, the equity markets were able to ignore
most of the turmoil in the fixed income markets. Individuals
looking to get in on the action in the equity market poured
record amounts of money into equity mutual funds. Money flowing
into mutual funds drove up the demand for shares of stock,
which drove up share prices, which drove up cash flows into
mutual funds, which drove up demand for stock, and on and on.
Although higher interest rates on fixed income securities
typically give equities competition for the investor's dollar,
many investors have apparently decided (at least until they
experience a bear market) that equities are the place to invest,
and only fools would settle for the "low" returns offered by
fixed income securities. For most of the first six months of
the year it seemed as though, when it came to the stock market,
"this time it was different." However, stocks should eventually
trade based upon their underlying fundamentals, at which time
those that have loaded their portfolios with common stock
"because you can't go wrong with common stock" will likely
suffer much larger losses than they ever anticipated.
The Portfolios of the Kiewit Mutual Fund are currently
positioned with the expectation that the next six months
will be difficult ones for investors in both the fixed
income and equity markets. We are allowing our cash balances
to rise in the anticipation that we will be able to purchase
securities at more attractive levels in the next six months
than are available currently.
Sincerely,
Ann C. McCulloch
August 14, 1996 President
KIEWIT MUTUAL FUND/MONEY MARKET PORTFOLIO
- -----------------------------------------
Investments/June 30, 1996
(Showing Percentage of Total Value of Net Assets)
- ------------------------------------------------------------------------
Moody's/S&P Principal
Value
Rating* Amount
(Note 2)
----------- --------- --
- -----
Commercial Paper- 92.8%
Automobiles - 5.1%
Daimler-Benz North America Corp., 5.30% -
5.37%, 07/09/96 - 09/18/96 P-1/A-1 $20,000,000
$19,935,129
Banks - 5.3%
Commerzbank US Finance Inc., 5.40%,
08/09/96 P-1/A-1+ 2,000,000
1,988,387
Suntrust Banks, Inc., 5.41%, 10/22/96 P-1/A-1 19,000,000
18,685,703
20,674,090
Business Services - 4.6%
PHH Corp., 5.31% - 5.42%, 07/08/96 -
08/19/96 P-1/A-1 18,000,000
17,930,986
Chemicals - 2.3%
E.I. DuPont De Nemours, 5.31% - 5.42%,
07/12/96 - 08/23/96 P-1/A-1+ 9,100,000
9,059,473
Electronics - 4.8%
General Electric Co., 5.38%, 09/13/96 P-1/A-1+ 19,000,000
18,794,568
Finance - 6.8%
BAT Capital Corp., 5.33%, 07/02/96 P-1/A-1 20,000,000
19,997,061
Mitsubishi Motors Credit of America, Inc.,
5.45% - 5.48%, 07/25/96 - 08/05/96 P-1/A-1+ 6,727,000
6,695,686
26,692,747
Financial Services - 15.2%
Ford Motor Credit Corp., 5.31%, 07/19/96 P-1/A-1 22,000,000
21,942,580
General Electric Capital Corp., 5.03% -
5.68%, 07/26/96 - 02/04/97 P-1/A-1+ 18,500,000
18,304,221
Orix America Inc., 5.36% - 5.54%,
07/01/96 - 08/01/96 P-1/A-1+ 19,000,000
18,965,737
59,212,538
Food & Beverages - 2.0%
McCormick & Co., 5.42%, 07/29/96 P-1/A-1 5,000,000
4,979,039
PepsiCo. Inc., 5.43%, 09/09/96 P-1/A-1 2,658,000
2,630,298
7,609,337
Games & Toys - 4.6%
Hasbro Inc., 5.32% - 5.46%,
07/22/96 - 09/20/96 P-1/A-1 18,100,000
17,986,450
Hardware & Tools - 0.5%
Stanley Works, 5.44%, 07/30/96 P-1/A-1 2,000,000
1,991,284
Leasing - 9.2%
Hertz Corp., 5.36%, 07/23/96 P-1/A-1 19,000,000
18,938,693
International Lease Finance Corp., 5.33% -
5.36%, 08/12/96 - 08/19/96 P-1/A-1 17,000,000
16,885,013
35,823,706
Office Equipment - 7.1%
Hewlett Packard Co., 5.44% - 5.45%,
09/24/96 - 9/27/96 P-1/A-1+ 9,600,000
9,476,056
TDK USA Corp., 5.37% - 5.42%,
07/17/96 - 10/21/96 P-1/A-1+ 18,300,000
18,041,539
27,517,595
Moody's/S&P Principal
Value
Rating* Amount
(Note 2)
----------- --------- --
- -----
Pharmaceuticals Preparations - 6.9%
Sandoz Corp., 5.31% -5.40%,
07/11/96 - 08/09/96 P-1/A-1+ 17,000,000
16,944,639
The accompanying notes are an integral part of the financial
statements.
KIEWIT MUTUAL FUND/MONEY MARKET PORTFOLIO
- -----------------------------------------
Investments/June 30, 1996 - continued
- ------------------------------------------------------------------------
- --
Schering Corp., 5.44%, 09/17/96 P-1/A-1+ 10,000,000
9,883,758
26,828,397
Publishing - 3.6%
Dow Jones & Co., 5.36% - 5.38%,
07/10/96 - 07/31/96 P-1/A-1+ 14,100,000
14,056,754
Retail Merchandising - 5.1%
Nordstrom Credit, Inc., 5.37%, 07/08/96 P-1/A-1 3,000,000
2,996,879
Penney (J.C.) Funding Corp., 5.34% -
5.41%, 07/12/96 - 08/19/96 P-1/A-1 17,000,000
16,932,767
19,929,646
Securities Dealers - 4.6%
CS First Boston Group, Inc. 5.33% -
5.46%, 07/15/96 -08/29/96 P-1/A-1 18,000,000
17,908,497
Utilities - 5.1%
AT&T Corp., 5.35%, 08/16/96 P-1/A-1+ 15,000,000
14,898,992
Consolidated Natural Gas, 5.41%, 08/08/96 P-1/A-1+ 5,000,000
4,971,605
19,870,597
TOTAL COMMERCIAL PAPER (COST $361,821,794)
361,821,794
Corporate Bonds - 0.5%
Gillette Co., 5.55%, 08/15/96
(COST $1,897,649) Aa3/AA- 1,900,000
1,897,649
U.S. Government Agency Obligations - 1.0%
Federal Farm Credit Banks, 5.56%,
01/02/97 (COST $3,998,125) NR/NR 4,000,000
3,998,125
Repurchase Agreement - 7.1%
With Paine Webber Group, Inc.: At 5.55% Dated
06/28/96, To Be Repurchased At $27,808,355
On 07/01/96, Collateralized By Federal Home
Loan Mortgage Corporation Securities With
Various Coupons And Maturities To 02/01/23
(Market Value $26,860,756) And Federal
National Mortgage Association Securities With
Various Coupons And Maturities To 02/01/13
(market value $1,491,695) (COST $27,795,500)
27,795,500
TOTAL INVESTMENTS (COST $395,513,068)+ - 101.4%
395,513,068
OTHER ASSETS AND LIABILITIES, NET - (1.4)%
_(5,546,531)
NET ASSETS - 100.0%
$389,966,537
===========
* Unaudited
+ Cost for federal income tax and financial reporting purposes.
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/MONEY MARKET PORTFOLIO
- ------------------------------------------------------------------------
- ---
FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
- ---
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
Assets:
Investments in securities (including repurchase agreement
of $27,795,500), at value (amortized cost $395,513,068)
(Note 2)
$395,513,068
Cash
176
Interest receivable
46,934
Unamortized organization costs (Note 2)
21,505
Other assets
2,722
--------
- ---
Total assets
395,584,405
Liabilities:
Dividends payable $1,545,292
Payable for investment securities purchased 3,998,125
Accrued management fee (Note 4) 27,406
Other accrued expenses (Note 4) 47,045
---------
Total liabilities
5,617,868
--------
- ---
Net Assets
$389,966,537
============
Net Assets consist of:
Shares of beneficial interest $
3,899,681
Additional paid-in capital
386,068,451
Accumulated net realized loss on investments
(1,595)
---------
- ----
Net Assets, for 389,968,132 shares outstanding
$389,966,537
============
Net Asset Value, offering and redemption price per share
($389,966,537 divided by 389,968,132 outstanding shares
of beneficial interest, $0.01 par value, unlimited number
of shares authorized)
$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 Fiscal Year Ended June 30, 1996
Interest income
$23,932,571
Expenses:
Management fee (reflects $298,011 waiver) (Note 4) $ 545,978
Administration fee (Note 4) 50,000
Accounting fee (Note 4) 77,547
Transfer Agent fee (Note 4) 21,035
Custodian fee (Note 4) 58,704
Trustees' fees and expenses (Note 4) 5,000
Amortization of organizational expenses (Note 2) 6,833
Registration fees 32,428
Legal 10,713
Audit 15,132
Other 20,631
--------
Total expenses, net
844,001
------
- -----
Net investment income
23,088,570
------
- -----
Net realized loss on investments
(704)
------
- ------
Net increase in net assets resulting from operations
$23,087,866
===========
The accompanying notes are an integral part of the financial
statements.
KIEWIT MUTUAL FUND/MONEY MARKET PORTFOLIO
- ------------------------------------------------------------------------
- ------
FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------
- ------
STATEMENTS OF CHANGES IN NET ASSETS
For the
Period
July 28,
1994
For the Fiscal Year (Commencement
of
Ended Operations)
through
June 30, 1996 June 30, 1995
------------------- --------------
- -----
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 23,088,570 $ 10,416,304
Net realized loss on investments (704) (891)
--------------- -------------
- --
Net increase in net assets resulting
from operations 23,087,866 10,415,413
--------------- -------------
- --
Distributions to shareholders from
net investment income ($0.055 and
$0.049 per share, respectively) (23,088,570) (10,416,304)
--------------- -------------
- --
Share transactions at net asset
value of $1.00 per share:
Proceeds from sale of shares 2,492,777,762 1,333,908,405
Shares issued to shareholders in
reinvestment of dividends from
net investment income 22,304,714 8,841,448
Cost of shares redeemed (2,505,823,180) (962,141,017)
-------------- -----------
- --
Net increase in net assets and
shares resulting from share
transactions 9,259,296 380,608,836
-------------- -----------
- --
Total increase in net assets 9,258,592 380,607,945
Net Assets:
Beginning of period 380,707,945 100,000
-------------- -----------
- ---
End of period $ 389,966,537 $ 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.
For the
Period
July 28,
1994
For the Fiscal Year (Commencement
of
Ended Operations)
through
June 30, 1996 June 30,
1995
------------------- --------------
- -----
Net Asset Value - Beginning of Period $1.00 $1.00
----- -----
Investment Operations:
Net investment income 0.05 0.05
----- -----
Distributions:
From net investment income (0.05) 0.05)
----- -----
Net Asset Value - End of Period $1.00 $1.00
===== =====
Total Return 5.61%
5.04%**
Ratios (to average net assets)/Supplemental Data:
Expenses + 0.20%
0.30%*
Net investment income 5.47%
5.51%*
Net assets at end of period $ 389,966,537 $ 380,707,945
- ------------------------------
* Annualized
** The total return for the period ended June 30, 1995 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 July 1, 1995 through June 30,
1997, the Manager agreed to waive all or a portion of the 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 0.27% and 0.34% for the fiscal year ended
June 30, 1996, and for the period ended June 30, 1995,
respectively.
The accompanying notes are an integral part of the financial
statements.
This page is intentionally left blank.
KIEWIT MUTUAL FUND/SHORT-TERM GOVERNMENT PORTFOLIO
- --------------------------------------------------
Investments/June 30, 1996
(Showing Percentage of Total Value of Net Assets)
- ------------------------------------------------------------------------
- ------
Principal
Value
Amount
(Note 2)
------ --
- ------
U.S. Government Agency Obligations - 51.8%
Federal Home Loan Banks Notes - 10.8%
Federal Home Loan Banks, 5.545%, 06/09/97 $ 5,000,000 $
4,982,000
Federal Home Loan Banks, 6.15%, 04/01/98 5,000,000
4,967,600
Federal Home Loan Banks, 5.215%, 07/08/98 5,000,000
4,890,199
Federal Home Loan Banks, 5.86%, 01/25/99 5,000,000
4,912,500
-----
- ------
19,752,299
-----
- ------
Federal Home Loan Mortgage Corporation Notes - 12.1%
Federal Home Loan Mtge. Corp., 7.86%, 01/21/97 5,000,000
5,056,849
Federal Home Loan Mtge. Corp., 8.20%, 01/16/98 3,000,000
3,029,880
Federal Home Loan Mtge. Corp., 5.825%, 08/11/98 4,195,000
4,144,450
Federal Home Loan Mtge. Corp., 6.28%, 10/02/98 1,000,000
994,710
Federal Home Loan Mtge. Corp., 6.38%, 10/02/98 4,650,000
4,634,981
Federal Home Loan Mtge. Corp., 5.37%, 12/07/98 4,500,000
4,397,804
-------
- ----
22,258,674
-----
- ------
Federal National Mortgage Association Discount Notes - 2.0%
Federal National Mtge. Assoc. Principal Strip, 7.56%,
12/20/01, Callable 12/20/96 at 100 3,750,000
3,637,462
-----
- ------
Federal National Mortgage Association Notes - 22.1%
Federal National Mtge. Assoc., 6.84%, 10/03/97 5,000,000
5,051,849
Federal National Mtge. Assoc., 5.00%, 02/25/98 2,000,000
1,956,940
Federal National Mtge. Assoc., 5.20%, 07/10/98 10,310,000
10,080,086
Federal National Mtge. Assoc., 5.77%, 08/25/98 2,900,000
2,861,256
Federal National Mtge. Assoc., 4.875%, 10/15/98 2,850,000
2,762,647
Federal National Mtge. Assoc., 4.75%, 10/26/98 3,620,000
3,499,563
Federal National Mtge. Assoc., 4.94%, 10/30/98 5,000,000
4,853,200
Federal National Mtge. Assoc., 7.46%, 09/27/99 5,000,000
5,006,199
Federal National Mtge. Assoc., 6.37%, 07/27/00 1,500,000
1,479,060
Federal National Mtge. Assoc., 5.84%, 03/15/01 3,000,000
2,897,908
-----
- ------
40,448,708
-----
- ------
Student Loan Marketing Association Notes - 2.2%
Student Loan Marketing Assoc., 6.97%, 08/23/00 4,000,000
4,000,520
-----
- ------
Tennessee Valley Authority Notes - 2.6%
Tennessee Valley Auth. Global Power, Ser. D,
6.00%, 11/01/00 5,000,000
4,856,250
-----
- ------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $94,714,216)
94,953,913
-----
- ------
U.S. Treasury Notes - 46.2%
U.S. Treasury Notes, 6.25%, 08/31/96 10,000,000
10,013,800
U.S. Treasury Notes, 7.25%, 11/30/96 7,000,000
7,049,419
U.S. Treasury Notes, 6.125%, 05/31/97 15,000,000
15,047,249
U.S. Treasury Notes, 5.875%, 07/31/97 10,000,000
10,002,999
U.S. Treasury Notes, 5.00%, 01/31/98 9,000,000
8,861,489
U.S. Treasury Notes, 7.25%, 02/15/98 2,000,000
2,036,960
U.S. Treasury Notes, 5.125%, 02/28/98 5,000,000
4,928,400
U.S. Treasury Notes, 5.875%, 08/15/98 5,000,000
4,972,600
U.S. Treasury Notes, 6.375%, 01/15/99 5,000,000
5,016,599
U.S. Treasury Notes, 7.75%, 01/31/00 5,000,000
5,212,700
U.S. Treasury Notes, 5.625%, 11/30/00 12,000,000
11,621,160
-----
- ------
Total U.S. Treasury Notes (Cost $85,341,116)
84,763,375
-----
- ------
The accompanying notes are an integral part of the financial
statements.
KIEWIT MUTUAL FUND/SHORT-TERM GOVERNMENT PORTFOLIO
- --------------------------------------------------
Investments/June 30, 1996 - continued
- ------------------------------------------------------------------------
- ------
Value
(Note 2)
----
- ----
Repurchase Agreement - 0.8%
With Paine Webber Group, Inc.: at 5.55%, dated 06/28/96
to be repurchased at $1,365,631 on 07/01/96, collateralized
by Federal Home Loan Mortgage Corporation securities with
various coupons and maturities to 09/01/25 (market value
$1,386,483) and Federal National Mortgage Association
security with a coupon of 5.50% and due 05/01/11
(market value $32,096) (COST $1,365,000)
$1,365,000
------
- ----
Total Investments (Cost $181,420,332)+ - 98.8%
181,082,288
Other Assets and Liabilities, Net - 1.2%
2,233,734
--------
- ----
NET Assets - 100.0%
$183,316,022
============
+ Cost for federal income tax and financial reporting purposes.
At June 30, 1996, net unrealized depreciation was $338,044. This
consisted of aggregate gross realized appreciation for all securities
in which there was an excess of market value over cost of $912,528
and aggregate gross unrealized depreciation for all securities in
which there was an excess of cost over market value of $1,250,572.
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
June 30, 1996)
Assets:
Investments in securities (including repurchase
agreement of $1,365,000), at value (amortized
cost $181,420,332) (Note 2)
$181,082,288
Cash
841
Receivable for Fund shares sold
57,586
Interest receivable
3,087,025
Unamortized organization costs (Note 2)
21,523
Other assets
1,058
----------
- ---
Total assets
184,250,321
Liabilities:
Dividends payable $876,788
Accrued management fee (Note 4) 8,035
Other accrued expenses (Note 4) 49,476
--------
Total liabilities
934,299
----------
- --
Net Assets
$183,316,022
============
Net Assets consist of:
Shares of beneficial interest $
914,572
Additional paid-in capital
182,841,015
Accumulated net realized loss on investments
(101,521)
Net unrealized depreciation of investments
(338,044)
----------
- --
Net Assets, for 91,457,162 shares outstanding
$183,316,022
============
Net Asset Value, offering and redemption price per share
($183,316,022 divided by * 91,457,162 outstanding shares
of beneficial interest, $0.01 par value, unlimited number
of shares authorized)
$2.00
=====
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 Fiscal Year Ended June 30, 1996
Interest income
$10,428,919
Expenses:
Management fee (reflects $219,505 waiver) (Note 4) $ 272,667
Administration fee (Note 4) 50,000
Accounting fee (Note 4) 54,591
Transfer Agent fee (Note 4) 20,701
Custodian fee (Note 4) 23,332
Trustees' fees and expenses (Note 4) 5,000
Amortization of organizational expenses (Note 2) 6,833
Registration fees 29,832
Legal 4,978
Audit 14,802
Other 9,444
---------
Total expenses, net
492,180
--------
- ---
Net investment income
9,936,739
--------
- ---
Realized and unrealized gain (loss) on investments:
Net realized gain on investment transactions
325,356
Net change in unrealized depreciation of investments
(2,131,628)
--------
- ---
Net loss on investments
(1,806,272)
Net increase in net assets resulting from operations $
8,130,467
===========
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
July 29,
1994
For the Fiscal Year (Commencement
of
Ended Operations)
through
June 30, 1996 June 30,
1995
------------------- --------------
- -----
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 9,936,739 $
6,378,385
Net realized gain (loss) on
investment transactions 325,356
(426,877)
Net change in unrealized appreciation
(depreciation) of investments (2,131,628)
1,793,584
------------ ----------
- --
Net increase in net assets resulting
from operations 8,130,467
7,745,092
------------ ----------
- --
Distributions to shareholders from
net investment income ($0.123 and
$0.106 per share, respectively) (9,936,739)
(6,378,385)
------------ ----------
- --
Fund Share Transactions (a):
Receipt from shares sold 79,791,554
255,654,892
Receipt from shares issued on
reinvestment of distributions 9,617,201
5,738,895
Shares redeemed (37,114,026)
(129,932,929)
------------ ----------
- --
Net increase in net assets from Fund
share transactions 52,294,729
131,460,858
------------ ----------
- --
Total increase in net assets 50,488,457
132,827,565
Net Assets:
Beginning of period 132,827,565
0
------------ ----------
- --
End of period $ 183,316,022
$132,827,565
=============
============
(a) Transactions in capital stock were:
Shares sold 39,449,589
127,758,308
Shares issued on reinvestment of
distributions 4,746,836
2,874,102
Shares redeemed (18,301,375)
(65,070,298)
Net increase in shares 25,895,050
65,562,112
Shares outstanding - Beginning
balance 65,562,112
0
----------- --------
- ---Shares outstanding - Ending balance 91,457,162
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.
For the
Period
July 29,
1994
For the Fiscal Year
(Commencement of
Ended Operations)
through
June 30, 1996 June 30,
1995
------------------- --------------
- -----
Net Asset Value - Beginning of Period $2.03 $2.00
----- -----
Investment Operations:
Net investment income 0.12 0.11
Net realized and unrealized gain
(loss) on investments (0.03) 0.03
----- ----
Total from investment operations 0.09 0.14
----- ----
Distributions:
From net investment income (0.12)
(0.11)
----- ----
Net Asset Value - End of Period $2.00 $2.03
===== =====
Total Return 4.66%
7.00%**
Ratios (to average net assets)/Supplemental Data:
Expenses + 0.30%
0.37%*
Net investment income 6.06%
5.75%*
Portfolio turnover rate 57.52%
122.58%*
Net assets at end of period $ 183,316,022 $
132,828,565
- ------------------------
* Annualized
** The total return for the period ended June 30, 1995 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, 1997,
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 0.43% and
0.45% for the fiscal year ended June 30, 1996 and for the period ended
June 30, 1995, respectively.
The accompanying notes are an integral part of the financial
statements.
Moody's/S&P Principal
Value
Rating* Amount
(Note 2)
----------- --------- ---
- ----
Corporate Bonds - 81.2%
Automobile Manufacturing - 3.1%
Chrysler Corp., 10.95%, 08/01/17 A3/A- $2,000,000
$2,180,000
Ford Motor Co., 8.875%, 04/01/06 A1/A+ 1,500,000
1,661,250
------
- ----
3,841,250
----
- ------
Banks - 12.9%
ABN-Amro Bank - Global Note, 7.25%, 05/31/05 Aa2/AA- 3,000,000
2,988,750
Security Pacific Corp., 6.00%, 05/01/00 A2/A 1,500,000
1,455,000
Star Bank, N.A., 6.375%, 03/01/04 A3/A- 2,000,000
1,887,500
U.S. Bancorp, 7.50%, 06/01/26,
Putable 06/01/06 @ 100 A3/A- 4,000,000
4,045,000
United Postal Savings Assoc., 9.00%, 07/26/99 Aaa/NR 1,500,000
1,608,750
World Savings and Loan Assoc., 9.90%, 07/01/00A2/A 3,620,000
3,873,400
------
- ----
15,858,400
----
- ------
Consumer Goods - 1.3%
Anheuser-Busch Cos., Inc., 6.90%, 10/01/02 A1/AA- 1,580,000
1,576,050
----
- ------
Financial - 4.8%
Ford Motor Credit Corp., 6.125%, 01/09/06 A1/A+ 3,000,000
2,756,250
General Motors Acceptance Corp., 8.875%,
06/01/10, Putable 06/01/00 A3/A- 1,050,000
1,170,750
Household Finance Co., 7.65%, 05/15/07 A2/A 2,000,000
2,040,000
----
- ------
5,967,000
----
- ------
Foreign - 9.4%
City of Vienna, 8.00%, 11/14/96 Aaa/NR 885,000
890,531
Hanson Overseas B.V., 7.375%, 01/15/03 A3/A- 4,000,000
4,050,000
Republic of Finland, 9.625%, 04/01/28 Aa2/AA- 3,000,000
3,243,750
Swedish Export Credit, 9.875%, 03/15/38,
Callable 03/15/98 at 104.94 Aa3/AA+ 2,000,000
2,187,500
WMC Finance USA, 6.50%, 11/15/03 A2/A 1,180,000
1,141,650
11,513,431
----
- ------
Industrial & Miscellaneous - 4.4%
Mallinckrodt Group, 6.00%, 10/15/03 A3/A- 2,000,000
1,877,500
Rohm & Haas Holdings, 9.80%, 04/15/20,
Sinking Fund 10/15/00 A1/A 3,000,000
3,560,220
---
- ------
5,437,720
----
- ------
Insurance - 5.2%
Cigna Corp., 9.75%, 01/05/98 A2/A 3,000,000
3,131,250
Lincoln National Corp., 7.25%, 05/15/05 A3/A 3,350,000
3,303,938
----
- ------
6,435,188
----
- ------
Manufacturing - 17.5%
Air Products & Chemicals, 8.50%, 04/01/06-04 A2/A 3,000,000
3,202,500
Alcan Aluminum, Inc., 9.625%, 07/15/19 - 99 A2/A- 5,000,000
5,537,500
Consolidated Coal, 8.21%, 06/21/04 A2/A- 3,250,000
3,410,160
Enclean Inc., 7.50%, 08/01/01 - 96 A3/A 1,000,000
1,033,750
English China Clays Delaware Inc.,
7.375%, 10/01/02 A2/A+ 3,800,000
3,857,000
Hoechst-Celanese Corp., 6.125%, 02/01/04 A2/A+ 2,500,000
2,343,750
Monsanto Co., 8.13%, 12/15/06 A1/A 2,000,000
2,100,000
----
- ------
21,484,660
----
- ------
The accompanying notes are an integral part of the financial
statements.
KIEWIT MUTUAL FUND/INTERMEDIATE-TERM BOND PORTFOLIO
- ---------------------------------------------------
Investments/June 30, 1996 - continued
- ------------------------------------------------------------------------
- ------
Moody's/S&P Principal
Value
Rating* Amount
(Note 2)
----------- --------- -
- ------
Merchandising & Retail - 5.0%
Mercantile Stores, Inc., 6.70%,
09/15/02 - 97 A1/A+ $4,000,000
$3,990,000
The Limited, Inc., 9.125%, 02/01/01 Baa2/BBB+ 2,000,000
2,107,500
----
- ------
6,097,500
----
- ------
Pharmaceuticals - 3.5%
Cardinal Health Inc., 6.50%, 02/15/04 A3/A- 4,500,000
4,308,750
----
- ------
Security & Commodity Brokers, Dealers - 6.1%
Bear Stearns Co., 6.625%, 01/15/04 A2/A 3,000,000
2,865,000
Morgan Stanley Group, Inc., 7.50%, 09/01/99 A1/A+ 3,000,000
3,060,000
Salomon, Inc., 7.75%, 05/15/00 Baa1/BBB 1,500,000
1,531,875
----
- ------
7,456,875
----
- ------
Transportation - 5.5%
Canadian National Railway Co.,
6.625%, 05/15/03 A1/AA- 3,000,000
2,895,000
Union Pacific Corp., 6.12%, 02/01/04 Aa3/A 4,080,000
3,840,300
----
- ------
6,735,300
----
- ------
Utilities - 2.5%
Indiana Michigan Power Co., Title XI,
8.05%, 01/15/98 NR/NR 135,000
135,000
Northwestern Public Service, 7.10%, 08/01/05 A2/A 3,000,000
2,955,000
----
- ------
3,090,000
----
- ------
TOTAL CORPORATE BONDS (Cost $100,639,187)
99,802,124
----
- ------
Asset-Backed Securities - 1.9%
Export Funding Trust, Ser. 1994A,
7.89%, 02/15/05 (COST $2,261,612) Aaa/AAA 2,250,000
2,338,635
----
- ------
Mortgage Backed Securities - 7.3%
Federal Home Loan Mtge. Corp., Ser. 124A
Plan C REMIC, 8.50%, 03/15/97 NR/NR 1,854,279
1,872,072
Federal Home Loan Mtge. Corp., Ser. 143A
Plan C REMIC, 8.50%, 06/15/97 NR/NR 191,685
193,524
Federal Home Loan Mtge. Corp., Ser. 125A
Plan C REMIC, 8.75%, 03/15/00 NR/NR 802,657
830,350
Federal Home Loan Mtge. Corp., Ser. 1342H,
7.50%, 08/15/07 NR/NR 2,000,000
2,002,842
Federal National Mtge. Assoc., 7.27%,
08/24/05 NR/NR 2,500,000
2,471,925
Federal National Mtge. Assoc., Pool #326277,
7.00%, 05/01/09 NR/NR 1,663,465
1,641,633
----
- ------
TOTAL MORTGAGE BACKED SECURITIES (COST $9,079,368)
9,012,346
----
- ------
U.S. Government Agency Obligations - 6.0%
Federal National Mtge. Assoc. Principal
Strip, 7.94%, 11/22/01, Callable
11/22/96 @ 100 NR/NR 5,000,000
4,871,750
Federal National Mtge. Assoc., 7.37%,
04/13/04, Callable 04/14/99 NR/AAA 2,500,000
2,483,350
----
- ------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $7,419,083)
7,355,100
----
- ------
U.S. Treasury Notes - 0.8%
U.S. Treasury Notes, 5.75%, 08/15/03
(COST $956,392) NR/NR 1,000,000
952,140
----
- ------
The accompanying notes are an integral part of the financial
statements.
KIEWIT MUTUAL FUND/INTERMEDIATE-TERM BOND PORTFOLIO
- ---------------------------------------------------
Investments/June 30, 1996 - continued
- ------------------------------------------------------------------------
- ------
Value
(Note
2)
------
- --
Repurchase Agreement - 1.2%
With Paine Webber Group, Inc.: at 5.55%, dated
06/28/96, to be repurchased at $1,519,703 on 07/01/96,
collateralized by Federal Home Loan Mortgage Corporation,
pool #C00219, 8.00%, due 03/01/23 (market value $238,919),
Federal National Mortgage Association, pool #845294, due on
03/01/23 (market value $975,490), Federal Home Loan Mortgage
Corporation, pool #219023, 6.50%, due on 06/01/08 (market
value $358,051)
(COST $1,519,000) $
1,519,000
----------
- --
TOTAL INVESTMENTS (COST $121,874,642)+ - 98.4%
120,979,345
OTHER ASSETS AND LIABILITIES, NET - 1.6%
1,972,243
----------
- --
NET ASSETS - 100.0% $
122,951,588
=============
* Unaudited.
+ Cost for federal income tax and financial reporting purposes.
At June 30, 1996, net unrealized depreciation was $895,297. This
consisted of aggregate gross unrealized appreciation for all securities
in which there was an excess of market value over cost of $904,420
and aggregate gross unrealized depreciation for all securities in
which there was an excess of cost over market value of $1,799,717.
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
June 30, 1996
Assets:
Investments in securities (including
repurchase agreement of $1,519,000),at
value (amortized cost $121,874,642) (Note 2)
$120,979,345
Cash
727
Receivable for investment securities sold
105,909
Receivable for Fund shares sold
61,788
Interest receivable
2,476,782
Unamortized organization costs (Note 2)
21,449
Other assets
835
------
- ------
Total assets
123,646,835
Liabilities:
Dividends payable $ 624,509
Payable for Fund shares redeemed 9,415
Accrued management fee (Note 4) 20,923
Other accrued expenses (Note 4) 40,400
---------
Total liabilities
695,247
------
- ------
Net Assets
$122,951,588
============
Net Assets consist of:
Shares of beneficial interest $
611,766
Additional paid-in capital
123,697,752
Accumulated net realized loss on investments
(462,633)
Net unrealized depreciation of investments
(895,297)
------
- ------
Net Assets, for 61,176,566 shares outstanding
$122,951,588
============
Net Asset Value, offering and redemption price per share
($122,951,588 divided by 61,176,566 outstanding shares
of beneficial interest, $0.01 par value, unlimited number of shares
authorized)
$2.01
=====
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 Fiscal Year Ended June 30, 1996
Interest income $
8,588,947
Expenses:
Management fee (reflects $86,597 waiver) (Note 4) $ 413,226
Administration fee (Note 4) 50,000
Accounting fee (Note 4) 51,116
Transfer Agent fee (Note 4) 20,655
Custodian fee (Note 4) 20,649
Trustees' fees and expenses (Note 4) 5,000
Amortization of organizational expenses (Note 2) 6,833
Registration fees 28,127
Legal 2,509
Audit 14,757
Other 11,922
----------
Total expenses, net
624,794
------
- -----
Net investment income
7,964,153
-----
- -----
Realized and unrealized gain (loss) on investments:
Net realized gain on investment transactions
244,623
Net change in unrealized depreciation of investments
(2,952,477)
------
- -----
Net loss on investments
(2,707,854)
------
- -----
Net increase in net assets resulting from operations $
5,256,299
===========
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
July 25,
1994
For the Fiscal Year
(Commencement of
Ended Operations)
through
June 30, 1996 June 30,
1995
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 7,964,153 $
6,088,902
Net realized gain (loss) on investment
transactions 244,623
(707,256)
Net change in unrealized appreciation
(depreciation)of investments (2,952,477)
2,057,180
------------ ----------
- ---
Net increase in net assets resulting
from operations 5,256,299
7,438,826
------------ ----------
- ---
Distributions to shareholders from net
investment income
($0.131 and $0.121 per share,
respectively) (7,964,153)
(6,088,902)
------------ ----------
- ---
Fund Share Transactions (a):
Receipt from shares sold 27,470,121
246,061,746
Receipt from shares issued on
reinvestment of distributions 7,652,606
5,386,685
Shares redeemed (14,483,654)
(147,777,986)
------------ ----------
- ---
Net increase in net assets from Fund
share transactions 20,639,073
103,670,445
------------ ----------
- ---
Total increase in net assets 17,931,219
105,020,369
Net Assets:
Beginning of period 105,020,369
0
------------ ----------
- ---
End of period $122,951,588 $
105,020,369
============
=============
(a) Transactions in capital stock were:
Shares sold 13,385,046
122,885,850
Shares issued on reinvestment of
distributions 3,725,531
2,700,353
Shares redeemed (7,133,718)
(74,386,496)
------------ ----------
- ---
Net increase in shares 9,976,859
51,199,707
Shares outstanding - Beginning balance 51,199,707
0
------------ ----------
- ---
Shares outstanding - Ending balance 61,176,566
51,199,707
============
=============
The accompanying notes are an integral part of the financial
statements.
24
KIEWIT MUTUAL FUND/INTERMEDIATE-TERM BOND PORTFOLIO
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
- ------
The following table includes selected data for a share outstanding
throughout each period.
For the
Period
July 25,
1994
For the Fiscal Year (Commencement
of
Ended Operations)
through
June 30, 1996 June 30,
1995
Net Asset Value - Beginning of Period $2.05 $2.00
----- -----
Investment Operations:
Net investment income 0.13 0.12
Net realized and unrealized gain (loss)
on investments (0.04) 0.05
----- -----
Total from investment operations 0.09 0.17
----- -----
Distributions:
From net investment income (0.13) (0.12)
----- -----
Net Asset Value - End of Period $2.01 $2.05
----- -----
----- -----
Total Return 4.48%
8.88%**
Ratios (to average net assets)
/Supplemental Data:
Expenses + 0.50% 0.41%*
Net investment income 6.37% 6.41%*
Portfolio turnover rate 86.06% 128.95%*
Net assets at end of period $122,951,588
$105,020,369
_______
*Annualized
**The total return for the period ended June 30, 1995 has not been
annualized.
+Since inception, Kiewit Investment Management Corp. (the "Manager")
agreed to waive all or 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, 1997, 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 0.57% and 0.53% for
the fiscal year ended June 30, 1996 and for the period ended June 30,
1995, respectively.
The accompanying notes are an integral part of the financial
statements.
25
This page is intentionally left blank.
The accompanying notes are an integral part of the financial
statements.
26
KIEWIT MUTUAL FUND/TAX EXEMPT PORTFOLIO
- ---------------------------------------------------
Investments/June 30, 1996
(Showing Percentage of Total Value of Net Assets)
- ------------------------------------------------------------------------
- ------
Moody's/S&P Principal Value
Rating* Amount (Note
2)
----------- --------- -----
- --
Municipal Bonds - 99.2%
Arizona - 2.2%
Maricopa County, AZ Unified School
Dist. #41 Gilbert (Proj. of 1988),
Ser. E, 6.50%, 07/01/08, Callable
07/01/02 @ 100 Aaa/AAA $ 1,000,000 $
1,087,500
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
2,085,960
----
- -----
3,173,460
----
- -----California - 3.3%
Laguna Beach, CA Gen. Oblig., 6.60%,
08/15/09, Callable 08/15/01 @ 102 Aa/AA 1,150,000
1,226,187
San Francisco, CA (City & County Public
Safety Imp. Proj.), Ser. 1990C, 6.10%,
06/15/06 A1/AA- 1,510,000
1,570,400
Southern California Public Power. Auth.
(Mead Adelanto Proj.), Ser. A, 4.75%,
07/01/08, Callable 07/01/04 @ 102 Aaa/AAA 2,000,000
1,857,500
----
- -----
4,654,087
----
- -----
Colorado - 1.5%
Denver, CO City & County Gen. Oblig.,
6.375%, 08/01/02, Callable 08/01/01
@ 101 Aa/AA 1,920,000
2,068,800
----
- -----
Connecticut - 4.3%
Connecticut State Gen. Oblig., 4.75%,
03/15/07, Callable 03/15/04 @ 101.50 Aa/AA- 6,500,000
6,101,875
----
- -----
Florida - 2.0%
Jacksonville, FL Electric Auth. Ref. Rev.
(St. Johns River Power Park Service),
7.00%, 10/01/09, Callable 10/01/99
@ 101.50 Aa1/AA 2,690,000
2,908,562
----
- -----
Hawaii - 0.7%
Hawaii State Ref., Ser. BV, 6.00%,
11/01/04 Aaa/AAA 1,000,000
1,047,500
----
- -----
Illinois - 6.3%
Chicago, IL Gen. Oblig. Unltd. School Fin.
Auth., Ser. A, 5.00%, 06/01/07,
Callable 06/01/04 @ 102 Aaa/AAA 3,000,000
2,891,250
Chicago, IL O'Hare International Airport,
Ser. 1988A, 8.00%, 01/01/08, Partially
Prerefunded 01/01/97 @ 102 NR/A+ 1,205,000
1,246,729
Illinois State Health Fac. Auth. (LA
Grange Memorial Hosp.), 5.50%,
05/15/23, Callable 05/15/03 @102 Aaa/AAA 2,445,000
2,564,194
Illinois State Toll Highway Priority Rev.
Ref., Ser. A, 3.50%, 01/01/05, Callable
01/01/03 @ 100 A1/A 2,500,000
2,200,000
----
- -----
8,902,173
----
- -----
Indiana - 2.8%
Indiana Bond Bank Special Prog., Ser. A,
6.25%, 08/01/09, Callable 02/01/98
@ 102 Aaa/AAA 2,450,000
2,495,937
Indianapolis, IN Local Public Imp. Bond
Bank, 5.30%, 01/10/00 Aa/AA 1,500,000
1,530,000
----
- -----
4,025,937
----
- -----
Iowa - 2.4%
Des Moines, IA Gen. Oblig. Unltd., Ser.
D, 5.00%, 06/01/03 Aa/AA+ 3,380,000
3,401,125
----
- -----
Kansas - 1.2%
Wichita, KS Sales Tax Gen. Oblig. Unltd.,
4.50%, 06/01/99 Aa/AA 1,670,000
1,667,912
----
- -----
The accompanying notes are an integral part of the financial
statements.
27
KIEWIT MUTUAL FUND/TAX EXEMPT PORTFOLIO
- ---------------------------------------------------
Investments/June 30, 1996 - continued
- ------------------------------------------------------------------------
- ------
Moody's/S&P Principal Value
Rating* Amount (Note
2)
----------- --------- -----
- --
Maryland - 3.3%
Maryland National Park & Planning
Commission Prince Georges County, MD
Ref. (Park Aquisition & Dev.), Ser.
S-2, 5.00%, 07/01/01 Aa/AA $ 1,160,000 $
1,178,850
Maryland State Gen. Oblig., 5.00%,
03/15/01 Aaa/AAA 1,000,000
1,013,750
Maryland Water Quality, Ser. A, 4.70%,
09/01/11, Prerefunded 09/01/00 @ 102 Aaa/AA 2,250,000
2,505,938
-----
- ------
4,698,538
-----
- ------
Massachusetts - 4.7%
Massachusetts State, 5.80%, 08/01/09,
Callable 08/01/04 @ 102 Aaa/AAA 1,000,000
1,020,000
Massachusetts State Health & Educ. Fac.,
(St. Joseph Hosp.), Ser. C, 9.50%,
10/01/20, Prerefunded 10/01/99 @ 102 NR/NR 4,900,000
5,659,500
-----
- ------
6,679,500
-----
- ------
Michigan - 7.2%
Detroit, Michigan City School Dist.
Qualified School Building Fund Insured
UTGO, 4.85%, 05/1/04 Aa/AA 1,500,000
1,445,625
Kent County, MI Bldg. Auth. Gen. Oblig.,
Ltd., 6.00%, 12/01/09, Callable
12/01/98 @ 102 Aa/AAA 1,250,000
1,278,125
Michigan Municipal Bond Auth. Rev.,
6.95%, 05/15/11, Callable 05/15/01
@ 102 Aa/AA 1,575,000
1,716,750
Michigan State Bldg. Auth. Rev., Ref.
Bond Ser. 1, 6.20%, 10/01/02 A1/AA- 5,450,000
5,824,687
-----
- ------
10,265,187
-----
- ------
Minnesota - 10.0%
Metropolitan Council Minnesota
Minneapolis - St. Paul Metro Area Ref.
Sewer, Ser. B, 09/01/06, 4.90% Aaa/AAA 1,935,000
1,879,369
Minnesota State Gen. Oblig. Unltd.,
4.75%, 05/01/01 Aaa/AA+ 5,000,000
5,018,750
Ramsey County, MN Gen. Oblig. Unltd.,
4.75%, 02/01/05 Aaa/AA+ 1,000,000
1,061,250
Southern Minnesota Municipal Power
Agency, 5.00%, 01/01/10, Callable
01/01/04 @ 102 Aaa/AAA 2,000,000
1,845,000
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
1,357,813
Washington County, MN Housing & Redev.
Auth. Jail Fac. Rev., 7.00%, 02/01/12,
Prerefunded 02/01/02 @ 100 Aaa/AAA 2,785,000
3,073,944
-----
- ------
14,236,126
-----
- ------
Missouri - 1.8%
Missouri Higher Educ. Student Loan Auth.
Sr. Lien Rev., Ser. 1992A, 5.00%,
02/15/97 Aa/NR 1,430,000
1,433,275
St. Louis, MO Water Ref. Rev. & Imp.,
6.00%, 07/01/07, Callable 07/01/04
@ 102 Aaa/AAA 1,000,000
1,047,500
-----
- ------
2,480,775
-----
- ------
Nebraska - 10.9%
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
2,509,925
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
1,637,100
Nebraska Public Power Dist. Nuclear Fac.,
5.40%, 07/01/01 Aaa/AAA 3,370,000
3,454,250
Nebraska Public Power Dist. Rev. Power
Supply Sys., Ser. C, 4.40%, 01/01/03 A1/A+ 2,120,000
2,048,450
Omaha, NE Ref. Rev., 4.15%, 10/15/97 Aaa/AAA 2,550,000
2,559,563
Omaha, NE Gen. Oblig., 4.75%, 12/01/01 Aaa/AAA 1,070,000
1,074,013
The accompanying notes are an integral part of the financial
statements.
28
KIEWIT MUTUAL FUND/TAX EXEMPT PORTFOLIO
- ---------------------------------------------------
Investments/June 30, 1996 - continued
- ------------------------------------------------------------------------
- ------
Moody's/S&P Principal Value
Rating* Amount (Note
2)
----------- --------- -----
- --
Omaha, NE Public Power Dist., Ser. B,
4.90%, 02/01/02 Aa/AA $ 1,175,000 $
1,177,937
Omaha, NE Public Power Dist., 6.40%,
02/01/11, Prerefunded 02/01/02
@ 101.50 NR/AAA 1,000,000
1,083,750
-----
- ------
15,544,988
-----
- ------
Nevada - 3.5%
Clark County, NV School Dist. Gen.
Oblig., 5.60%, 06/15/08, Callable
06/15/05 @ 101 Aaa/AAA 5,000,000
5,025,000
-----
- ------
New Jersey - 0.8%
New Jersey State Trans. Trust Fund Ref.
Bonds, Ser. B, 6.00%, 06/15/05 Aaa/AAA 1,000,000
1,056,250
-----
- ------
New Mexico - 3.2%
Farmington, NM Power Rev, 9.875%,
01/01/13, Callable 07/01/05 @ 100 Aaa/AAA 1,550,000
2,024,687
New Mexico State Severance Tax, Ser.
1992C, 5.60%, 07/01/02, Callable
07/01/97 @ 101.50 Aa/AA 2,400,000
2,453,232
-----
- ------
4,477,919
-----
- ------
New York - 0.9%
New York, NY Corpus M-Strips, 6.00%,
08/01/11, Callable 08/01/97 @ 100 NR/NR 1,400,000
1,305,500
-----
- ------
North Dakota - 0.8%
Lakota, ND (Cargill Proj.), Ser. 1996,
5.00%, 09/01/00 NR/AA3 1,190,000
1,190,000
-----
- ------
Ohio - 0.6%
Ohio State Public Fac. (Community Higher
Educ. Cap. Fac.) Ser. II-A, 4.30%,
12/01/08 Aaa/AAA 1,000,000
870,000
-----
- ------
Oregon - 1.3%
Oregon Health Sciences Univ. Rev.,
Ser. B, 4.125%, 07/01/99 Aaa/AAA 1,875,000
1,846,875
-----
- ------
Pennsylvania - 1.1%
Pennsylvania Intergovernmental Coop.
Auth. Special Tax Rev. (City of
Philadelphia Funding Proj.), 6.00%,
06/15/00 Aaa/AAA 1,500,000
1,569,375
-----
- ------
Rhode Island - 2.2%
Rhode Island State, 6.125%, 05/15/04,
Prerefunded 05/15/00 @ 102 A1/AA- 1,740,000
1,848,750
Rhode Island State Health & Educ. Bldg.
Corp. (Brown Univ.), 6.625%, 09/01/07,
Callable 09/01/99 @ 102 Aa1/AA 1,205,000
1,280,312
-----
- ------
3,129,062
-----
- ------
Texas - 7.5%
Houston, TX Housing Fin. Corp. Single
Family Mtge. Ref. Rev., Ser. 1993A,
4.70%, 06/01/98 Aaa/AAA 1,300,000
1,300,000
Houston, TX Gen. Oblig. Tax & Rev.
Cert., Ser. 1993F, 3.90%, 03/01/99 Aa/AA- 2,000,000
1,967,500
Houston, TX Independent School Dist.,
6.375%, 08/15/01 Aaa/AAA 3,925,000
4,209,563
Port Neches-Groves, TX Independent
School Dist., 6.00%, 02/15/07 Aaa/AAA 1,000,000
1,060,000
Texas Municipal Power Agency Rev.,
6.10%, 09/01/08 Aaa/AAA 2,000,000
2,115,000
-----
- ------
10,652,063
-----
- ------
The accompanying notes are an integral part of the financial
statements.
29
KIEWIT MUTUAL FUND/TAX EXEMPT PORTFOLIO
- ---------------------------------------------------
Investments/June 30, 1996 - continued
- ------------------------------------------------------------------------
- ------
Moody's/S&P Principal Value
Rating* Amount (Note
2)
----------- --------- -----
- --
Utah - 3.2%
Provo City, UT Energy Sys. Rev., 5.50%,
11/15/11 Aaa/AAA $ 2,175,000 $
2,120,625
Utah State Gen. Oblig. Unltd., 4.40%,
07/01/99 Aaa/AAA 2,500,000
2,496,875
------
- ------
4,617,500
------
- ------
Virginia - 3.7%
Fairfax, VA Water Auth., 6.125%,
01/01/29, Callable 01/01/00 @ 100 Aaa/AAA 5,000,000
5,237,500
------
- ------
Washington - 4.9%
Port Seattle, WA Airport and Marina
Rev., Ser. B, 5.90%, 11/01/99 Aa-/A1 1,000,000
1,030,000
Seattle, WA Metropolitan Sewer Rev.,
Ser. T, 6.625%, 01/01/06, Callable
01/01/00 @ 102 A1/AA- 1,240,000
1,323,700
Washington State, Ser. B, 6.375%,
08/01/10, Prerefunded 08/01/00 @ 100 Aa/AA 4,350,000
4,600,125
------
- ------
6,953,825
------
- ------
Wisconsin - 0.9%
Wisconsin Gen. Oblig., Ser. 1, 4.60%,
05/01/99 Aa/AA 1,300,000
1,300,000
------
- ------
TOTAL MUNICIPAL BONDS (COST $141,080,207)
141,087,414
------
- -----
Tax-Exempt Mutual Funds - 2.5%
Federated Tax Free Oblig. Fund
Institutional Shares
(COST $3,538,670) NR/NR 3,538,670
3,538,670
------
- -----
TOTAL INVESTMENTS (COST $144,618,877)
+ - 101.7%
144,626,084
OTHER ASSETS AND LIABILITIES, NET -
(1.7)%
(2,441,015)
------
- -----
NET ASSETS - 100.0%
$142,185,069
============
*Unaudited.
+Cost for federal income tax and financial reporting purposes.
At June 30, 1996, net unrealized appreciation was $7,207.
This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market
value over cost of $776,527 and aggregate gross unrealized
depreciation for all securities in which there was an excess
of cost over market value of $769,320.
NR Not Rated.
The accompanying notes are an integral part of the financial
statements.
30
KIEWIT MUTUAL FUND/TAX EXEMPT PORTFOLIO
- ---------------------------------------------------
FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
- ------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
Assets:
Investments in securities, at value (amortized
cost $144,618,877) (Note 2)
$144,626,084
Cash
314
Interest receivable
2,325,230
Unamortized organization costs (Note 2)
21,448
Other assets
960
-------
- -----
Total assets
146,974,036
Liabilities:
Dividends payable $ 253,342
Payable for investment securities purchased 4,465,240
Accrued management fees (Note 4) 37,642
Other accrued expenses (Note 4) 32,743
------------
Total liabilities
4,788,967
-------
- -----
Net Assets
$142,185,069
============
Net Assets consist of:
Shares of beneficial interest $
703,814
Additional paid-in capital
141,321,155
Accumulated net realized gain on investments
152,893
Net unrealized appreciation of investments
7,207
-------
- -----
Net Assets, for 70,381,380 shares outstanding
$142,185,069
============
Net Asset Value, offering and redemption price
per share ($142,185,069 , 70,381,380 outstanding
shares of beneficial interest, $0.01
par value, unlimited number of shares
authorized)
$2.02
=====
The accompanying notes are an integral part of the financial
statements.
31
KIEWIT MUTUAL FUND/TAX-EXEMPT PORTFOLIO
- ---------------------------------------------------
FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------
- ------
STATEMENT OF OPERATIONS
For the Fiscal Year Ended June 30, 1996
Interest income $
6,990,938
Expenses:
Management fee (reflects $57,267 waiver) (Note 4) $505,847
Administration fee (Note 4) 50,000
Accounting fee (Note 4) 52,519
Transfer Agent fee (Note 4) 20,675
Custodian fee (Note 4) 16,042
Trustees' fees and expenses (Note 4) 5,000
Amortization of organizational expenses (Note 2) 6,833
Registration Fees 11,464
Legal 5,083
Audit 14,781
Other 15,669
----------
Total expenses, net
703,913
------
- ----
Net investment income
6,287,025
------
- ----
Realized and unrealized gain (loss) on investments:
Net realized gain on investment transactions
1,129,202
Net change in unrealized depreciation of investments
(1,088,183)
------
- ----
Net gain on investments
41,019
------
- ----
Net increase in net assets resulting from operations
$6,328,044
==========
The accompanying notes are an integral part of the financial
statements.
32
KIEWIT MUTUAL FUND/TAX-EXEMPT PORTFOLIO
- ---------------------------------------------------
FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------
- ------
STATEMENTS OF CHANGES IN NET ASSETS
For the
Period
July 25,
1994
For the Fiscal Year
(Commencement of
Ended Operations)
through
June 30, 1996 June 30,
1995
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 6,287,025 $
7,775,015
Net change in unrealized appreciation
(depreciation) of investments (1,088,183)
1,095,390
------------ ----------
- --
Net increase in net assets resulting
from operations 6,328,044
7,894,096
------------ ----------
- --
Distributions to shareholders from net
investment income ($0.091 and $0.082
per share, respectively) (6,287,025)
(7,775,015)
------------ ----------
- --
Fund Share Transactions (a):
Receipt from shares sold 834,895
256,020,185
Receipt from shares issued on
reinvestment of distributions 6,294,106
7,172,761
Shares redeemed (502,681)
(127,794,297)
----------- ----------
- --
Net increase in net assets from Fund
share transactions 6,626,320
135,398,649
----------- -----------
- -
Total increase in net assets 6,667,339
135,517,730
Net Assets:
Beginning of period 135,517,730
0
----------- -----------
- -
End of period $142,185,069
$135,517,730
============
============
(a) Transactions in capital stock were:
Shares sold 406,518
128,010,155
Shares issued on reinvestment of
distributions 3,075,446
3,614,686
Shares redeemed (248,827)
(64,476,598)
----------- -----------
- -
Net increase in shares 3,233,137
67,148,243
Shares outstanding - Beginning
balance 67,148,243
0
----------- -----------
- -
Shares outstanding - Ending balance 70,381,380
67,148,243
===========
============
The accompanying notes are an integral part of the financial
statements.
33
KIEWIT MUTUAL FUND/TAX-EXEMPT PORTFOLIO
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
- ------
The following table includes selected data for a share
outstanding throughout each period.
For the
Period
July 25,
1994
For the Fiscal Year
(Commencement of
Ended Operations)
through
June 30, 1996 June 30,
1995
Net Asset Value - Beginning of Period $2.02 $2.00
----- -----
Investment Operations:
Net investment income 0.09 0.08
Net realized and unrealized gain on
investments 0.00 0.02
----- -----
Total from investment operations 0.09 0.10
----- -----
Distributions:
From net investment income (0.09)
(0.08)
----- -----
Net Asset Value - End of Period $2.02 $2.02
===== =====
Total Return 4.55%
5.23%**
Ratios (to average net assets)
/Supplemental Data:
Expenses + .50%
.39%*
Net investment income 4.47%
4.37%*
Portfolio turnover rate 100.61%
104.34%*
Net assets at end of period $142,185,069 $135,517,730
________
*Annualized
**The total return for the period ended June 30, 1995 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, 1996,
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, 1997, 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 0.50% 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 0.54% and 0.46% for the fiscal
year ended June 30, 1996 and for the period ended June 30, 1995,
respectively.
The accompanying notes are an integral part of the financial
statements.
34
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- ---------------------------------------------------
Investments/June 30, 1996
(Showing Percentage of Total Value of Net Assets)
- ------------------------------------------------------------------------
- ------
Value
Shares (Note
2)
------ -----
- ---
Common Stock - 92.7%
State and National Banks - 1.2%
Crestar Financial Corp. $ 15,000 $
800,625
-------
- ---
Manufacturing - 63.6%
Chemicals & Allied Products - 4.9%
Monsanto Co. 55,000
1,787,500
Morton International, Inc. 39,100
1,456,475
-------
- ---
3,243,975
-------
- ---
Computer & Office Equipment - 3.0%
Cisco Systems, Inc.* 14,000
792,750
3Com Corp.* 26,000
1,189,500
-------
- ---
1,982,250
-------
- ---
Consumer Products - 12.1%
Avon Products, Inc. 42,000
1,895,250
Newell Co. 50,000
1,531,250
Procter & Gamble Co. 20,000
1,812,500
Whirlpool Corp. 55,000
2,729,375
-------
- ---
7,968,375
-------
- ---
Electronics - 1.8%
Kemet Corp.* 60,000
1,200,000
-------
- ---
Food & Beverage - 2.3%
Northland Cranberries Class A 50,000
1,500,000
-------
- ---
Iron & Steel - 3.0%
LTV Corp. 175,000
1,990,625
-------
- ---
Misc. Electrical Machinery, Equipment
& Supplies - 7.1%
Black & Decker Corp. 42,000
1,622,250
National Semiconductor Corp.* 90,000
1,395,000
Thomas & Betts Corp. 44,000
1,650,000
-------
- ---
4,667,250
-------
- ---
Misc. Manufacturing Industries - 7.6%
Calgon Carbon Corp. 115,000
1,552,500
Flow International Corp.* 72,500
580,000
Litton Industries, Inc.* 36,500
1,587,750
Tracor, Inc.* 75,000
1,293,750
-------
- ---
5,014,000
-------
- ---
Oil Field Machinery & Equipment - 3.0%
Schlumberger, Ltd. 23,500
1,979,875
-------
- ---
Petroleum Refining - 2.6%
Mobil Corp. 15,500
1,737,938
-------
- ---
Pharmaceutical Preparations - 4.1%
Pfizer, Inc. 38,000
2,712,250
-------
- ---
Value
Shares (Note
2)
------ -----
- ---
Precision Instruments & Medical Supplies - 5.5%
Medtronic Inc. 30,000
$1,680,000
Millipore Corp. 47,000
1,968,124
-------
- ---
3,648,124
-------
- ---
Textiles & Apparel - 2.6%
Warnaco Group, Inc. 67,500
1,738,125
-------
- ---
Transportation Equipment - 4.0%
Chrysler Corp. 26,000
1,612,000
OEA, Inc. 13,000
487,500
Superior Industries International, Inc. 20,700
548,550
-------
- ---
2,648,050
-------
- ---
TOTAL MANUFACTURING
42,030,837
-------
- ---
Services - 14.3%
Amusement - 1.3%
Walt Disney Co. 13,641
857,678
-------
- ---
Business Services - 3.2%
Omnicom Group, Inc. 45,000
2,092,500
-------
- ---
Computer Services - 3.6%
Cerner Corp.* 80,000
1,710,000
Phamis Inc.* 45,000
663,750
-------
- ---
2,373,750
-------
- ---
Medical & Health Services - 6.2%
Tenet Healthcare Corp.* 75,000
1,603,125
United Healthcare Corp. 50,000
2,525,000
-------
- ---
4,128,125
-------
- ---
TOTAL SERVICES
9,452,053
-------
- ---
Wholesale & Retail Trade - 13.6%
Miscellaneous Retail Stores - 2.2%
Dayton Hudson Corp. 14,000
1,443,750
-------
- ---
Retail Building Materials - 4.5%
Home Depot, Inc. 55,000
2,970,000
-------
- ---
Retail Eating & Drinking Places - 2.9%
Cracker Barrel Old Country Store, Inc. 78,500
1,903,625
-------
- ---
Retail Food Stores - 2.9%
Albertson's, Inc. 47,000
1,944,625
-------
- ---
Wholesale Building Materials - 1.1%
Ply-Gem Industries, Inc. 55,000
749,375
-------
- ---
TOTAL WHOLESALE & RETAIL TRADE
9,011,375
-------
- ---
TOTAL COMMON STOCK (COST $52,600,471)
61,294,890
-------
- ---
The accompanying notes are an integral part of the financial
statements.
35
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- -----------------------------------------
Investments/June 30, 1996 - continued
- ------------------------------------------------------------------------
- ------
Value
(Note
2)
-----
- ---
Repurchase Agreement - 7.9%
With Paine Webber Group, Inc.: at 5.55%, dated 06/28/96,
to be repurchased at $5,228,417 on 07/01/96, collateralized
by Federal Home Loan Mortgage securities with various coupons
and maturities to 05/01/26 (market value $5,333,222)
(COST $5,226,000) $
5,226,000
--------
- ----
TOTAL INVESTMENTS
(COST $57,826,471) + - 100.6.%
66,520,890
OTHER ASSETS AND LIABILITIES,
NET - (0.6)%
(384,054)
--------
- ----
NET ASSETS - 100.0% $
66,136,836
============
COVERED CALL OPTIONS WRITTEN AT JUNE 30, 1996
Shares
Subject
Value
to Call (Note
2)
------- -----
- ---
Common Stock/Exp. Date/Ex.Price
- -------------------------------
Chrysler Corp., Oct. 1996, $70 10,000
$(18,750)
Litton Industries Inc., July 1996, $45 10,000
(11,875)
3Com Corp., July 1996, $45 10,000
(18,750)
United Healthcare Corp., July 1996, $50 10,000
(18,750)
United Healthcare Corp., Sept. 1996, $65 10,000
(1,875)
Whirlpool Corp., September 1996, $50 15,000
(34,688)
------
- ---
TOTAL CALL OPTIONS
(PREMIUMS RECEIVED $248,642)
$(104,688)
------
- ---
+Cost for federal income tax and financial reporting purposes. At June
30, 1996, net unrealized appreciation was $8,694,419. This consisted of
aggregate gross unrealized appreciation for all securities in which
there was an excess of market value over cost of $10,893,631 and
aggregate gross unrealized depreciation for securities in which there
was an excess of cost over market value of $2,199,212.
*Non-income producing security.
The accompanying notes are an integral part of the financial
statements.
36
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- ---------------------------------------------------
FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
- ------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
Assets:
Investments in securities (including repurchase
agreement of $5,226,000), at value (amortized
cost $57,826,471) (Note 2) $66,520,890
Cash 489
Receivable for Fund shares sold 10,563
Dividends and interest receivable 63,549
Other assets 264
-----------
Total assets 66,595,755
Liabilities:
Covered call options written, at value
(premiums received $248,642) $ 104,688
Payable for investment securities purchased 291,860
Accrued management fee (Note 4) 19,581
Other accrued expenses (Note 4) 42,790
-----------
Total liabilities 458,919
-----------
Net Assets $66,136,836
===========
Net Assets consist of:
Shares of beneficial interest $ 39,897
Additional paid-in capital 56,765,126
Undistributed net investment income 351,518
Accumulated net realized gain 141,922
Net unrealized appreciation of investments
(Note 3) 8,838,373
-----------
Net Assets, for 3,989,667 shares outstanding $66,136,836
===========
Net Asset Value, offering and redemption price
per share($66,136,836 * 3,989,667 outstanding
shares of beneficial interest, $0.01 par
value, unlimited number of shares authorized) $16.58
======
The accompanying notes are an integral part of the financial
statements.
37
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- -----------------------------------------
FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------
- ------
STATEMENT OF OPERATIONS
For the Fiscal Year Ended June 30, 1996
Income:
Dividends $ 578,508
Interest 506,964
-----------
Total income 1,085,472
Expenses:
Management fee (reflects $126,289 waiver)
(Note 4) $228,357
Administration fee (Note 4) 50,000
Accounting fee (Note 4) 44,520
Transfer Agent fee (Note 4) 20,580
Custodian fee (Note 4) 15,560
Trustees' fees and expenses (Note 4) 5,000
Legal 1,146
Audit 14,577
Registration fees 23,987
Other 1,589
--------
Total expenses, net. 405,316
-----------
Net investment income 680,156
-----------
Realized and unrealized gain (loss) on investments:
Net realized loss on investment transactions (396,620)
Net realized gain on call options written 571,222
Net change in unrealized appreciation of
investments and call options 7,557,053
-----------
Net gain on investments 7,731,655
-----------
Net increase in net assets resulting from
operations $ 8,411,811
===========
The accompanying notes are an integral part of the financial
statements.
38
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- -----------------------------------------
FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------
- ------
STATEMENTS OF CHANGES IN NET ASSETS
For the
Period
January 5,
1995
For the Fiscal Year
(Commencement of
Ended Operations)
through
June 30, 1996 June 30,
1995
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 680,156 $
156,910
Net realized loss on investments (396,620)
0
Net realized gain (loss) on call
options written 571,222
(32,680)
Net change in unrealized appreciation
of investments and call options 7,557,053
1,281,320
----------- ----------
- -
Net increase in net assets resulting
from operations 8,411,811
1,405,550
----------- ----------
- -
Distributions to shareholders from:
Net investment income ($0.15 and
$0.00 per share, respectively) (485,548)
0
----------- ----------
- -
Fund Share Transactions (a):
Receipt from shares sold 39,179,945
21,063,170
Receipt from shares issued on
reinvestment of distributions 480,960
0
Shares redeemed (2,315,274)
(1,603,778)
---------- ---------
- -
Net increase in net assets from Fund
share transactions 37,345,631
19,459,392
---------- ---------
- -
Total increase in net assets 45,271,894
20,864,942
Net Assets:
Beginning of period 20,864,942
0
---------- ---------
- -
End of period (including undistributed
net investment income of $351,518
and $156,910, respectively) $66,136,836
$20,864,942
==========
==========
(a) Transactions in capital stock were:
Shares sold 2,617,366
1,613,591
Shares issued on reinvestment of
distributions 31,130
0
Shares redeemed (145,226)
(127,194)
---------- ---------
- -
Net increase in shares 2,503,270
1,486,397
Shares outstanding - Beginning balance 1,486,397
0
---------- ---------
- -
Shares outstanding - Ending balance 3,989,667
1,486,397
==========
==========
The accompanying notes are an integral part of the financial
statements.
39
KIEWIT MUTUAL FUND/EQUITY PORTFOLIO
- -----------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
- ------
The following table includes selected data for a share outstanding
throughout each period.
For the
Period
January 5,
1994
For the Fiscal Year
(Commencement of
Ended Operations)
through
June 30, 1996 June 30,
1995
Net Asset Value - Beginning of Period $14.04 $12.50
------ ------
Investment Operations:
Net investment income 0.13 0.11
Net realized and unrealized gain on
investments 2.56 1.43
------ ------
Total from investment operations 2.69 1.54
------ ------
Distributions:
From net investment income (0.15)
0.00
------ ------
Net Asset Value - End of Period $16.58 $14.04
====== ======
Total Return 19.24%
12.32%**
Ratios (to average net assets)/Supplemental
Data:
Expenses + 0.80%
0.80%*
Net investment income 1.34%
3.06%*
Portfolio turnover rate 16.95%
0.00%*
Average commission rate paid $0.0637 -
Net assets at end of period $66,136,836 $20,864,942
_________________________
*Annualized
** The total return for the period ended June 30, 1995 has not been
annualized.
+For the period from inception through June 30, 1997, Kiewit
Investment Management Corp. 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, would have been 1.05%
and 2.56% for the year ended June 30, 1996 and for the period
ended June 30, 1995, respectively.
The accompanying notes are an integral part of the financial
statements.
40
KIEWIT MUTUAL FUND
- -----------------------------------------
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
- ------
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. The Fund was 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 the Kiewit
Institutional Fund. The investment objective of each
Portfolio is as follows: Money Market Portfolio: high current
income, while maintaining a stable share price by investing
in short-term money market securities; Short-Term Government
Portfolio: a high level of current income, consistent with the
maintenance of principal and liquidity; Intermediate-Term Bond
Portfolio: a high level of current income, consistent with
reasonable risk; Tax-Exempt Portfolio: a high level of current
income, exempt from federal income tax, consistent with
reasonable risk; and Equity Portfolio: long-term capital
appreciation.
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 market
quotations are readily available are valued at the most
recent bid prices. Securities in the Money Market Portfolio
are valued using 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, each Portfolio is
intended to qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code and each Portfolio
is expected to distribute all of its taxable and tax-exempt
income to its shareholders. Therefore, no federal income tax
provision is required. At June 30, 1996, the Money Market
Portfolio, Short-Term Government Portfolio and Intermediate-
Term Bond Portfolio had a net tax basis capital loss carry
forward available to offset future net capital gains of
approximately $2,000, $102,000 and $463,000, respectively.
The capital loss carry forwards all expire in 2003 or 2004.
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 at least 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.
41
KIEWIT MUTUAL FUND
- -----------------------------------------
NOTES TO FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------
- ------
2. Significant Accounting Policies - continued
Use of Estimates in the Preparation of Financial Statements.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amount of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ
from those estimates.
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., 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 proceeds in
satisfaction of the obligation. Provisions of each agreement
require 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 transaction 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 fiscal year ended
June 30, 1996, purchases and sales of investment securities
(excluding short-term investments) aggregated as follows:
Short-Term Intermediate-
Government Term Bond Tax-Exempt
Equity
---------- --------- ---------- ----
- --
Purchases $97,332,652 $110,204,509 $139,234,936
$44,163,714
Sales 64,091,601 96,145,493 132,779,962
7,093,288
42
KIEWIT MUTUAL FUND-----------------------------------------
NOTES TO FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------
- ------
3. Investment Securities - continued
Written options transactions for the Equity Portfolio
during the fiscal year ended June 30, 1996 are summarized
as follows:
Call/Put Options Written
------------------------
Premiums Received
-----------------
Options Outstanding at June 30, 1995 $ ( 26,359)
Options written (1,239,526)
Options closed 313,419
Options exercised 242,987
Options expired 460,837
----------
Options outstanding at June 30, 1996 (248,642)
Unrealized appreciation at June 30, 1996 143,954
----------
Market value of written options at
June 30, 1996 $ (104,688)
==========
During the fiscal year ended June 30, 1996, the Short-Term
Government Portfolio and the Intermediate-Term Bond
Portfolio did not enter into any option contracts.
4. Management Fee and Other Transactions with Affiliates.
The Fund, on behalf of each Portfolio, employs Kiewit
Investment Management Corp. ("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 for each Portfolio, KIM manages the investment and
reinvestment of Fund assets, maintains required records and
makes regular reports to the Fund's officers and the Board
of Trustees.
For its investment management services, KIM receives fees
at the following annual rates of each Portfolio's average
monthly net assets: Money Market - 0.20%; Short-Term
Government - 0.30%; Intermediate-Term Bond - 0.40%; Tax-Exempt
0.40%; and Equity - 0.70%. Prior to December 7, 1994, KIM
received fees from the Portfolio's at an annual rate of
0.30% of each Portfolio's 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 - 0.30%; Short-Term Government - 0.40%; Intermediate-
Term Bond - 0.50%; Tax-Exempt - 0.50%; and Equity - 0.80%.
Effective July 1, 1995 through June 30, 1997, 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 - 0.20%; Short-Term Government - 0.30%; Intermediate-
Term Bond - 0.50%; Tax-Exempt - 0.50%; and Equity - 0.80%.
These undertakings may be amended or rescinded at any time
in the future.
43
KIEWIT MUTUAL FUND
- -----------------------------------------
NOTES TO FINANCIAL STATEMENTS - continued
- ------------------------------------------------------------------------
- ------
4. Management Fee and Other Transactions with Affiliates -
continued
The following table summarizes the management fees for the
fiscal year ended June 30, 1996:
Gross Management
Management
Fee Fees
Waived
---------------- ---------
- --
Money Market Portfolio $843,989 $298,011
Short-Term Government Portfolio 492,172 219,505
Intermediate-Term Bond Portfolio 499,823 86,597
Tax-Exempt Portfolio 563,114 57,267
Equity Portfolio 354,646 126,289
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 Administration 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 service providers. TSI is compensated by KIM
for the services it provides.
WTC serves as Custodian of the assets of the Fund.
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 each 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.
44
Report of Independent Accountants
To the Board of Trustees and
Shareholders of
Kiewit Mutual Fund
In our opinion, the accompanying statements of assets and
liabilities, including the schedules of investments, and
the related statements of operations and of changes in net
assets and the financial highlights present fairly, in all
material respects, the financial position of Money Market
Portfolio, Short-Term Government Portfolio, Intermediate-Term
Bond Portfolio, Tax-Exempt Portfolio and Equity Portfolio
(constituting Kiewit Mutual Fund, hereafter referred to as
the "Fund"), at June 30, 1996, the results of each of their
operations for the year then ended, and changes in each of
their net assets and the financial highlights for each of
the periods indicated, in conformity with generally accepted
accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of
these financial statements in accordance with generally
accepted auditing standards which require that we plan and
perform the audits to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles
used and significant estimates made by management, and
evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of
securities at June 30, 1996 by correspondence with the
custodian and brokers, provide a reasonable basis for the
opinion expressed above.
PRICE WATERHOUSE LLP
Philadelphia, PA
July 26, 1996
45
KIEWIT MUTUAL FUND
- -----------------------------------------
TAX INFORMATION (UNAUDITED)
- ------------------------------------------------------------------------
- ------
Pursuant to Section 852 of the Internal Revenue Code of 1986,
the Tax-Exempt Portfolio designates $6,123,159 as tax-exempt
dividends.
In January 1997, shareholders of the Fund will receive Federal
income tax information on all distributions paid to their
accounts in the calendar year 1996, including any distributions
paid between June 30, 1996 and December 31, 1996.
46
This page is intentionally left blank.
47
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.
KW07 48 August 1996
KIEWIT MUTUAL FUND
Items Required By Form N-1A
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits.
(a) Financial Statements:
Included in the Prospectus (Part A):
Financial Highlights for Kiewit Mutual Fund for
the Period Ended June 30, 1996.
Included in the Statement of Additional Information
(Part B):
(i) Report of Independent Public Accountants
dated July 26, 1996
(ii) Audited Financial Statements of
Kiewit Money Market Portfolio for the Period
Ended June 30, 1996
(iii) Audited Financial Statements of Kiewit
Short-Term Government Portfolio for the Period
Ended June 30, 1996
(iv) Audited Financial Statements of
Kiewit Intermediate-Term Bond Portfolio for the
Period Ended June 30, 1996
(v) Audited Financial Statements of
Kiewit Tax-Exempt Portfolio for the Period Ended
June 30, 1996
(vi) Audited Financial Statements of
Kiewit Equity Portfolio for the Period Ended
June 30, 1996
(b) Exhibits:
Exhibit No Description of Exhibit
(1) (i) Agreement and Declaration of Trust*
(ii) Certificate of Trust*
(iii) Certificate of Amendment to Certificate of Trust**
(2) By-Laws*
(3) None
(4) (i) Specimen Certificate of Kiewit Money Market Fund*
(ii) Specimen Certificate of Kiewit Short-Term
Government Fund*
(iii) Specimen Certificate of Kiewit Intermediate-
Term Bond Fund*
(iv) Specimen Certificate of Kiewit Tax-Exempt Fund*
(v) Specimen Certificate of Kiewit Equity Fund*
(5) (i) Investment Management Agreement re Kiewit Money Market
Portfolio**
(ii) Investment Management Agreement re Kiewit
Short-Term Government Portfolio**
(iii) Investment Management Agreement re Kiewit Intermediate-Term
Bond Portfolio**
(iv) Investment Management Agreement re Kiewit Tax-Exempt
Portfolio**
(v) Investment Management Agreement re Kiewit Equity Portfolio**
(6) Distribution Agreement with Rodney Square Distributors, Inc.**
(7) None
(8) Custody Agreement with Wilmington Trust Company*
(9) (i) Amended and Restated Transfer Agency Agreement with
Rodney Square Management Corporation**
(ii) Amended and Restated Accounting Services Agreement with
Rodney Square Management Corporation**
(iii) Amended and Restated Administration Agreement with
Rodney Square Management Corporation**
(iv) Sub-Administration Agreement between Kiewit Investment
Management Corp. and Treasury Strategies, Inc.*
(10) Not applicable
(11) Consent of Independent Accountants
(12) Not applicable
(13) Not applicable
(14) Not applicable
(15) Not applicable
(16) Schedule of Performance Calculations
(17) Financial Data Schedule
* Previously filed with the Securities and Exchange Commission on
Form N-1A on July 25, 1994 and incorporated herein by reference.
** Previously filed with the Pre-Effective Amendment No. 2 to
registration statement on November 29, 1994 and incorporated
herein by reference.
Item 25. Persons controlled by or under common control with
Registrant.
None.
Item 26. Number of Holders of Securities.
Number of Record Holders
Title of Class as of July 31, 1996
Shares of Beneficial Interest, Par Value $.01
Kiewit Money Market Portfolio 97
Kiewit Short-Term Government Portfolio 20
Kiewit Intermediate-Term Bond Portfolio 20
Kiewit Tax-Exempt Portfolio 3
Kiewit Equity Portfolio 33
Item 27. Indemnification.
Reference is made to Article VII of the Registrant's Agreement and
Declaration of Trust (Exhibit 24(b)(1)(i)) and to Article X of the
Registrant's By-Laws (Exhibit 24(b)(2)), which are incorporated herein
by reference. Pursuant to Rule 484 under the Securities Act of 1933, as
amended, the Registrant furnishes the following undertaking:
"Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to trustees, officers and
controlling persons of the Registrant pursuant to the foregoing
provisions, or otherwise, the Registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a trustee, officer or controlling person of the
Registrant in the successful defense of any action, suit or proceeding)
is asserted by such trustee, officer or controlling person in connection
with the securities being registered, the Registrant will, unless in the
opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as expressed
in the Act and will be governed by the final adjudication of such
issue."
Item 28. Business and Other Connections of Investment Adviser.
Kiewit Investment Management Corp. (the "Manager") is a Delaware
corporation organized in 1994. Under Investment Management Agreements
with respect to each Portfolio, dated November 15, 1994, the Manager,
subject to the supervision of the Board of Trustees, provides investment
management services to each Portfolio. Kiewit Diversified Group ("KDG")
owns 60% of the Manager and Kiewit Construction Group, Inc. ("KCG") owns
the remaining 40% of the Manager. Both KDG and KCG are 100% owned by
Peter Kiewit Sons', Inc.
The business, profession, vocation or employment of a substantial nature
in which each director and officer of the Manager and Rodney Square is
or has been , during the past two fiscal years, engaged for his own
account in the capacity of director, officer, employee, partner or
trustee is set forth below.
Kiewit Investment Management Corp.
Richard R. Jaros is a director of the Manager. Mr. Jaros is also
Executive Vice President and a Director of Peter Kiewit Sons', Inc.
("PKS").
Walter Scott, Jr. is a Director of the Manager. Mr. Scott is also
Chairman and President of PKS.
Kenneth E. Stinson is a Director of the Manager. Mr. Stinson is also
Executive Vice President of PKS and Chairman and President of Kiewit
Construction Group ("KCG").
Ann C. McCulloch is President of the Manager. Ms. McCulloch is also
President and the Chairman of the Fund and Treasurer of PKS.
Kenneth Gaskins, Esquire is a Vice President and Secretary of the
Manager. Mr. Gaskins is also Corporate Counsel of PKS.
P. Greggory Williams is a Vice President and Chief Investment Officer of
the Manager.
Brian J. Mosher is a Vice President of the Manager. From
March 1989 to December 1994, Mr. Mosher served as Investment
Manager of Meridian Mutual Insurance Company in
Indianapolis, Indiana.
Item 29. Principal Underwriters
(a) The Rodney Square Fund
The Rodney Square Tax-Exempt Fund
The Rodney Square Strategic Fixed-Income Fund
The Rodney Square Multi-Manager Fund
Heitman Securities Trust/Institution Class
1838 Investment Advisors Funds
The Olstein Funds
The HomeState Group
(b) The principal business address for the Officers and Directors of Rodney
Square Distributors, Inc. is: 1100 North Market Street, Wilmington, DE
19890-0001.
(1) (2) (3)
Position
Name and Principal Position and Offices with and Offices
Business Address Rodney Square Distributors, Inc. with Registrant
Jeffrey O. Stroble President, Secretary, None
Treasurer & Director
Martin L. Klopping Director None
Cornelius G. Curran Vice President None
(c) None.
Item 30. Locations of Accounts and Records
All accounts and records are maintained by the Registrant, or on its
behalf by the Fund's administrator, transfer agent, dividend paying
agent and accounting services agent, Rodney Square Management
Corporation, at Rodney Square North, 1100 North Market Street,
Wilmington, DE 19890.
Item 31. Management Services.
There are no management-related service contracts not discussed in Part
A or Part B.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, Kiewit Mutual Fund
certifies that it meets all of the requirements for effectiveness of
this Registration Statement pursuant to Rule 485(b) under the Securities
Act of 1933 and has duly caused this Post-Effective Amendment to its
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Omaha, the State of Nebraska,
on the 27th day of September, 1996.
KIEWIT MUTUAL FUND
BY: /s/ Ann C. McCulloch
Ann C. McCulloch, President
Pursuant to the requirements of the Securities Act of 1933, this
Post Effective Amendment to the Registration Statement has been signed
below by the following persons in the capacities and on the dates
indicated.
Signature Title Date
/s/ Ann C. McCulloch Chairman and Trustee September 27, 1996
Ann C. McCulloch (Principal Executive Officer)
/s/ P. Greggory Williams Chief Financial September 27, 1996
P. Greggory Williams Officer, Treasurer and
Vice President (Principal
Financial Officer)
/s/ Richard R. Jaros Trustee September 27, 1996
Richard R. Jaros
/s/ Lawrence B. Thomas Trustee September 27, 1996
Lawrence B. Thomas
/s/ George Lee Butler Trustee September 27, 1996
George Lee Butler
/s/ John J. Quindlen Trustee September 27, 1996
John J. Quindlen
INDEX TO EXHIBITS
Exhibit No. Description of Exhibit
11 Consent of Independent Accountants
16 Schedule of Performance Calculations
17 Financial Data Schedule
Exhibit 11
Consent of Independent Accountants
We hereby consent to the use in the Statement of Additional
Information constituting part of the Post-Effective
Amendment No. 2 to the registration statement on Form N-1A
(the "Registration Statement") of our report dated August
26, 1996, relating to the financial statements and financial
highlights of Kiewit Mutual Fund, which appears in such
Statement of Additional Information, and to the
incorporation by reference of our report into the Prospectus
which constitutes part of this Registration Statement. We
also consent to the reference to us under the heading of
"Other Information" in such Statement of Additional
Information and to the reference to us under the heading
"Financial Highlights" in such Prospectus.
/s/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
Philadelphia, Pennsylvania
September 26, 1996
Exhibit 16
KIEWIT MUTUAL FUND
JUNE 30, 1996
# Yrs Average Annual Cumulative
in Period Total Return Total Return
Money Market Portfolio 1.569863 5.71% 9.11%
Short-Term Government Portfolio 1.569863 6.96% 11.13%
Intermediate-Term Bond Portfolio 1.569863 8.40% 13.50%
Tax-Exempt Portfolio 1.569863 6.59% 10.54%
Equity Portfolio 1.487671 21.70% 33.93%
Average Annual Cumulative
For the Period Ending 6/30/96 Total Return Total Return
FORMULA (ERV/P) 1/N - 1=T (ERV/P) -1=T
Money Market Portfolio: (1,091.12/1,000)1/1.569863-1=T (1,091.12/1,000)-1=T
0.0571 = T 0.0911 = T
5.71% = T 9.11% = T
Short-Term Government
Portfolio: (1,111.34/1,000) 1/1.569863-1=T (1,111.34/1,000)-1=T
0.0696 = T 0.1113 = T
6.96% = T 11.13%= T
Intermediate-Term Bond
Portfolio: (1,134.96/1,000) 1/1.569863-1=T (1,134.96/1,000)-1=T
0.0840 = T 0.1350 = T
8.40% = T 13.50%= T
Tax-Exempt Portfolio: (1,105.42/1,000) 1/1.569863-1=T (1,105.42/1,000)-1=T
0.0659 = T 0.1054 = T
6.59% = T 10.54%= T
Equity Portfolio: (1,339.28/1,000)1/1.487671-1=T (1,339.28/1,000)-1=T
.2170 = T 0.3393 = T
21.70%= T 33.93%= T
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE KIEWIT M
UTUAL FUND ANNUAL REPORT FOR THE MONEY MARKET PORTFOLIO DATED JUNE 30, 1996 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE ANNUAL REPORT DATED JUNE 30,
1996.
</LEGEND>
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE KIEWIT
MUTUAL FUND ANNUAL REPORT FOR THE SHORT-TERM GOVERNMENT PORTFOLIO DATED JUNE 30,
1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE ANNUAL REPORT DATED
JUNE 30, 1996.
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<S> <C>
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMMARY FINANCIAL INFORMATION EXTRACTED FROM THE KIEWIT
MUTUAL FUND ANNUAL REPORT FOR THE INTERMEDIATE-TERM BOND PORTFOLIO DATED JUNE
30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE ANNUAL REPORT
DATED JUNE 30, 1996.
</LEGEND>
<S> <C>
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE KIEWIT
MUTUAL FUND ANNUAL REPORT FOR THE TAX-EXEMPT PORTFOLIO DATED JUNE 30, 1996 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE ANNUAL REPORT DATED JUNE 30,
1996.
</LEGEND>
<S> <C>
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE KIEWIT
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QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE ANNUAL REPORT DATED JUNE 30, 1996.
</LEGEND>
<S> <C>
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