KIEWIT MUTUAL FUND
MONEY MARKET PORTFOLIO
SHORT-TERM GOVERNMENT PORTFOLIO
INTERMEDIATE-TERM BOND PORTFOLIO
TAX-EXEMPT PORTFOLIO
EQUITY PORTFOLIO
[KIEWIT MUTUAL FUND LOGO]
ANNUAL REPORT
JUNE 30, 1997
K I E W I T
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, 1997.
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, 1997.*
Investment Results**
The Money Market Portfolio's total return for the fiscal year ended June 30,
1997 was 5.43%. That return consisted of income distributions (dividends) of
$0.05 per share. The Portfolio's return compares favorably with both the
4.98% total return reported for IBC's Money Fund Report Average and the 5.27%
total return for IBC's Money Fund First Tier Institution Only Average over the
same period. Management believes that the First Tier Institution Only Average
provides a more suitable benchmark to compare the Portfolio's performance
because of its lower expense ratios.
The Short-Term Government Portfolio's total return for the fiscal year was
6.51%. That return consisted of an increase in net asset value of $0.01 per
share (increasing from $2.00 to $2.01) and income distributions (dividends) of
$0.12 per share. The Portfolio's return falls short of the 6.57% 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 1997.
Comparison of Change in Value of $10,000 Investment***
- ------------------------------------------------------
[Insert graph]
12-6-94 6-30-95 6-30-96 6-30-97
------- ------- ------- -------
Kiewit Short-Term Government Portfolio $10,000 $10,618 $11,113 $11,836
Lehman 1-3 Year Government Index $10,000 $10,679 $11,265 $12,005
Average Annual Total Return
---------------------------
Effective
1 Year Date
------ ---------
Fund 6.51% 6.78%
Index 6.57% 7.37%
The Intermediate-Term Bond Portfolio's total return for the fiscal year was
7.51%. That return consisted of an increase in net asset value of $0.02 per
share (increasing from $2.01 to $2.03) and income distributions (dividends) of
$0.13 per share. The Portfolio's return falls short of the 8.13% 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 1997.
- --------------------------
* 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
July 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
*** Past performance is not predictive of future results.
Comparison of Change in Value of $10,000 Investment***
- ------------------------------------------------------
[Insert graph]
12-6-94 6-30-95 6-30-96 6-30-97
------- ------- ------- -------
Kiewit Intermediate-Term Bond Portfolio $10,000 $10,863 $11,350 $12,203
Lehman Intermediate Corporate Index $10,000 $11,248 $11,847 $12,810
Average Annual Total Return
---------------------------
Effective
1 Year Date
------ ---------
Fund 7.51% 8.05%
Index 8.13% 10.12%
The Tax-Exempt Portfolio's total return for the fiscal year was 6.15%. That
return consisted of an increase in net asset value per share of $0.03
(increasing from $2.02 to $2.05) and income and realized gain distributions
(dividends) of $0.09 per share. The Portfolio's return matches the 6.15%
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 past
performance of the Portfolio and unmanaged Lehman 5-Year Municipal Bond Index
since the Portfolio's effective date on December 6, 1994 through the end of
June 1997.
Comparison of Change in Value of $10,000 Investment***
- ------------------------------------------------------
[Insert graph]
12-6-94 6-30-95 6-30-96 6-30-97
------- ------- ------- -------
Kiewit Tax-Exempt Portfolio $10,000 $10,573 $11,054 $11,734
Lehman 5-Year Municipal Bond Index $10,000 $10,804 $11,350 $12,049
Average Annual Total Return
---------------------------
Effective
1 Year Date
------ ---------
Fund 6.15% 6.42%
Index 6.15% 7.52%
The Equity Portfolio's total return for the fiscal year was 25.67%. That
return consisted of an increase in net asset value per share of $3.98
(increasing from $16.58 to $20.56) and income and realized gain distributions
(dividends) of $0.24 per share. The Portfolio's return falls short of the
34.70% 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, 1995.
*** Past performance is not predictive of future results.
Comparison of Change in Value of $10,000 Investment***
- ------------------------------------------------------
[Insert graph]
1-5-95 6-30-95 6-30-96 6-30-97
------- ------- ------- -------
Kiewit Equity Portfolio $10,000 $11,232 $13,393 $16,830
S&P 500 Index $10,000 $11,980 $15,095 $20,332
Average Annual Total Return
---------------------------
Effective
1 Year Date
------ ---------
Fund 25.67% 23.28%
Index 34.70% 37.17%
*** 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, 1997, Kiewit Investment Management Corp., 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 0.20%; Short-Term Government Portfolio
0.30%; Intermediate-Term Bond Portfolio 0.50%; Tax-Exempt Portfolio 0.50% and
Equity Portfolio 0.80%. These limitations aided the competitive returns of
each Portfolio.
Market Review and Preview
Over the first half of 1997 the financial markets, despite a significant
downdraft during the middle of the period, have rewarded both fixed-income and
equity investors. While the returns for fixed-income investors were only
average, the returns for equity investors were spectacular, especially given
the equity market's strong performance of the previous two years. Strong
corporate cash flows, strong demand by foreign investors, and the lowest
inflation rate since the 1960s all helped propel the markets higher.
Investor concern that the strong economy would lead to tightening by the
Federal Reserve (the "Fed") served to push interest rates up beginning in mid-
February. Those concerns were proven to be well founded when the Fed did raise
short-term interest rates 1/4% of 1% in late March. From February's low in
interest rates to their high in April, fixed-income investors suffered market
losses in excess of 4% of their principal if they were holding five year
bonds. Investors holding longer-term bonds had even greater market losses.
However, most of the losses were recovered by the end of June as a slowing
economy, a shrinking budget deficit, continued strong demand by foreign
investors, and a lack of price inflation led to falling interest rates.
February's rise in interest rates also ended the stock market rally that had
started in the middle of December. Stocks moved somewhat lower until the Fed's
March decision to raise short-term interest rates led to a full-blown retreat.
From February's high price as measured by the Standard & Poor's 500 Index to
April's low price, the market gave up almost 10% of its value. But, like so
many other corrections that we have witnessed over the last few years, the
correction was short lived and seemed to reverse itself on a dime. By the end
of June, the S&P 500 Index had regained all of its ground and closed just off
of another all-time high, giving investors a 20.6% total return for the first
half of the year. Compare that to the average annual return for large cap
stocks over the past 70 years of less than 11%.
*** Past performance is not predictive of future results.
Strong demand by 401(k) participants, higher than expected corporate profits,
mergers and acquisitions, and ongoing corporate repurchase programs led to
increased demand for stocks during a time of decreasing supply. As is usually
the case when demand outstrips supply, prices go up. This has led to an
environment where it appears to be impossible to not make money in the stock
market. In reality, it is easy to lose money in this market. If you were an
owner of small or mid cap stocks or stocks of companies that failed to meet
analysts' earnings estimates, you may have actually lost money during the
period. Performance was so concentrated that the twenty largest companies (4%
of the companies making up the S&P 500 Index) accounted for almost half of the
return for the S&P 500 Index during the first half of 1997.
The indices exceeded the returns of the average stock portfolio manager.
According to Barron's, during the first half of 1997, only 101 out of 2,577
(about 4%) general equity funds outperformed the S&P 500 Index. This
surprising statistic holds true over the last full year when less than 6%
outperformed the Index and over the last three years when just 5% outperformed
the Index. Kiewit Mutual Fund is taking steps to bring portfolio returns in
line with performance benchmarks. Livingston Douglas recently joined Kiewit
Investment Management Corp., the Fund's adviser, as Chief Investment Officer.
He brings a highly disciplined investment approach, focused on reducing
differences between the total return of each portfolio and its performance
benchmark.
While we believe that the path of least resistance for interest rates is
toward higher rates, we do not expect a major move. Our view assumes continued
benign inflation and moderate economic growth. However, should the current low
rate of unemployment lead to a noticeable increase in inflation, we would
expect aggressive action on the part of the Fed. As for equities, the gains
of the past two and one-half years have been extraordinary and should not be
expected to continue. As always, we will be patient in our investing and we
urge our shareholders to be patient and remember that investing is a long-term
endeavor.
Sincerely,
/s/ Ann C. McCulloch
Ann C. McCulloch
President
August 7, 1997
Kiewit Mutual Fund
- ------------------
Financial Statements
- ------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1997
Short-Term
Money Market Government Intermediate-Term Tax-Exempt Equity
Portfolio Portfolio Bond Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------
Assets:
Investment in Series, at value* (Note 2).
Receivable for investment sold in Series.
Receivable for Portfolio shares sold. . .
Unamortized organization costs
(Note 2). . . . . . . . . . . . . . . .
Other assets. . . . . . . . . . . . . . .
Total assets. . . . . . . . . . . . . . .
$ 417,211,622 $ 130,104,986 $ 108,877,612 $ 138,399,835 $ 88,787,885
0 0 0 0 6,229
0 204,522 111,597 0 8,771
14,634 14,634 14,634 14,634 0
7,774 3,041 2,286 2,641 1,056
- ------------------------------------------------------------------------------
417,234,030 130,327,183 109,006,129 138,417,110 88,803,941
- ------------------------------------------------------------------------------
Liabilities:
Dividends payable. . . . . . . . . . . .
Payable for investment purchased in
Series . . . . . . . . . . . . . . . .
Payable for Portfolio shares redeemed. .
Accrued management fee (Note 4). . . . .
Other accrued expenses . . . . . . . . .
Total liabilities. . . . . . . . . . . .
Net Assets . . . . . . . . . . . . . . .
1,919,381 611,420 555,892 496,549 0
0 204,522 111,597 0 0
0 0 0 0 15,000
13,990 4,186 3,593 4,663 2,865
15,673 12,831 21,007 13,140 23,335
- ------------------------------------------------------------------------------
1,949,044 832,959 692,089 514,352 41,200
- ------------------------------------------------------------------------------
$ 415,284,986 $ 129,494,224 $ 108,314,040 $ 137,902,758 $ 88,762,741
==============================================================================
Net Assets consist of:
Shares of beneficial interest . . . . . .
Additional paid-in capital. . . . . . . .
Undistributed net investment income . . .
Accumulated net realized gain (loss)
on investment . . . . . . . . . . . . .
Net unrealized appreciation on
investment. . . . . . . . . . . . . . .
Net Assets. . . . . . . . . . . . . . . .
Shares of beneficial interest outstanding
$ 4,152,863 $ 644,973 $ 533,392 $ 673,360 $ 43,183
411,133,394 128,927,911 107,985,696 136,078,000 75,955,558
0 0 0 0 309,411
(1,271) (313,986) (355,451) 912,923 3,074,292
0 235,326 150,403 238,475 9,380,297
- ------------------------------------------------------------------------------
$ 415,284,986 $ 129,494,224 $ 108,314,040 $ 137,902,758 $ 88,762,741
==============================================================================
415,286,257 64,497,298 53,339,202 67,335,973 4,318,269
- ------------------------------------------------------------------------------
Net Asset Value, Offering and . . . . . .
redemption price per share (Net . . . .
assets/Outstanding shares of. . . . . .
beneficial interest, $0.01 par
value). . . . . . . . . . . . . . . . .
*Cost of investment in the Master . . . .
$1.00 $2.01 $2.03 $2.05 $20.56
==============================================================================
$ 409,576,605 $ 127,537,411 $ 106,506,111 $ 136,402,050 $ 78,616,188
- ------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Fiscal Year Ended June 30, 1997
Short-Term
Money Market Government Intermediate-Term Tax-Exempt Equity
Portfolio Portfolio Bond Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------
Income:
Investment income from Series . . . . .
Expenses from Series. . . . . . . . . .
Dividends . . . . . . . . . . . . . . .
Interest. . . . . . . . . . . . . . . .
Total Income. . . . . . . . . . . . . .
$ 7,864,775 $ 2,557,010 $ 2,443,242 $ 2,154,419 $ 425,111
(229,758) (117,998) (163,368) (207,201) (205,987)
0 0 0 0 586,576
17,131,935 6,756,925 5,397,929 4,640,102 190,968
- ------------------------------------------------------------------------------
24,766,952 9,195,937 7,677,803 6,587,320 996,668
- ------------------------------------------------------------------------------
Expenses:
Management fee (reflects waiver)
(Note 4)* . . . . . . . . . . . . . .
Administration fee (Note 4) . . . . . .
Accounting fee (Note 4) . . . . . . . .
Transfer Agent fee (Note 4) . . . . . .
Custodian fee (Note 4). . . . . . . . .
Trustees' fees and expenses
(Note 4). . . . . . . . . . . . . . .
Amortization of organizational
expenses (Note 2) . . . . . . . . . .
Registration fees . . . . . . . . . . .
Legal fees. . . . . . . . . . . . . . .
Audit fees. . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . .
Total expenses, net . . . . . . . . . . .
Net investment income . . . . . . . . . .
470,072 202,423 276,233 361,687 271,842
33,289 33,289 33,289 33,289 33,289
54,691 36,632 33,844 35,152 30,922
24,433 22,731 22,399 22,503 22,073
35,354 14,673 12,417 10,109 9,331
4,000 4,000 4,000 4,000 4,000
6,815 6,815 6,815 6,815 0
295 1,781 6,942 2,981 11,112
14,060 1,790 3,212 1,893 701
8,989 8,637 8,564 8,587 8,442
25,115 10,162 9,277 12,734 5,036
- ------------------------------------------------------------------------------
677,113 342,933 416,992 499,750 396,748
- ------------------------------------------------------------------------------
24,089,839 8,853,004 7,260,811 6,087,570 599,920
- ------------------------------------------------------------------------------
Net realized and unrealized gain on investments:
Net realized gain on investment
transactions. . . . . . . . . . . . . .
Net realized gain on call options
written . . . . . . . . . . . . . . . .
Net change in unrealized
appreciation on investments . . . . . .
Net gain on investments . . . . . . . . .
324 193,448 113,893 574,953 1,444,865
0 0 0 0 308,968
0 192,088 1,215,590 1,652,704 15,744,489
- ------------------------------------------------------------------------------
324 385,536 1,329,483 2,227,657 17,498,322
- ------------------------------------------------------------------------------
Net increase in net assets resulting
from operations . . . . . . . . . . . .
$ 24,090,163 $ 9,238,540 $ 8,590,294 $ 8,315,227 $18,098,242
==============================================================================
* Management fee waiver. . . . . . . . .
$ (183,399) $ (140,365) $ (52,610) $ (27,760) $ (68,968)
STATEMENTS OF CHANGES IN NET ASSETS
For the Fiscal Year Ended June 30, 1997
Money Market Government Intermediate-Term Tax-Exempt Equity
Portfolio Portfolio Bond Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------
Increase (Decrease) in Net Assets:
Operations:
Net investment income. . . . . . . . . .
Net realized gain on investment
transactions . . . . . . . . . . . . .
Net realized gain on call options
written. . . . . . . . . . . . . . . .
Net change in unrealized appreciation
of investments . . . . . . . . . . . .
Net increase in net assets resulting
from operations. . . . . . . . . . . .
$ 24,089,839 $ 8,853,004 $ 7,260,811 $ 6,087,570 $ 599,920
324 193,448 113,893 574,953 1,444,865
0 0 0 0 308,968
0 192,088 1,215,590 1,652,704 15,744,489
- ------------------------------------------------------------------------------
24,090,163 9,238,540 8,590,294 8,315,227 18,098,242
- ------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income. . . . . . . . . .
In excess of net investment income . . .
Capital gain . . . . . . . . . . . . . .
Total distributions . . . . . . . . . . . . . . .
(24,089,839) (8,853,004) (7,260,811) (6,087,570) (642,027)
0 (58,182) (2,654) (98,764) 0
0 0 0 (173,959) (369,271)
- ------------------------------------------------------------------------------
(24,089,839) (8,911,186) (7,263,465) (6,360,293) (1,011,298)
- ------------------------------------------------------------------------------
Portfolio share transactions (a):
Receipt from shares sold. . . . . . .
Receipt from shares issued on
reinvestment of distributions. . . .
Shares redeemed. . . . . . . . . . . .
2,342,756,681 4,737,101 5,104,754 138 10,320,355
23,288,239 9,029,717 7,161,800 6,114,715 1,003,552
(2,340,726,795) (67,915,970) (28,230,931) (12,352,098) (5,784,946)
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets from
Fund share transactions. . . . . . . . ..
25,318,125 (54,149,152) (15,964,377) (6,237,245) 5,538,961
- ------------------------------------------------------------------------------
Total increase (decrease) in net assets. . .
25,318,449 (53,821,798) (14,637,548) (4,282,311) 22,625,905
Net Assets:
Beginning of year. . . . . . . . . . . .
End of year. . . . . . . . . . . . . . .
389,966,537 183,316,022 122,951,588 142,185,069 66,136,836
- ------------------------------------------------------------------------------
$ 415,284,986 $ 129,494,224 $ 108,314,040 $ 137,902,758 $ 88,762,741
==============================================================================
(a) Transactions in capital stock were:
Shares sold. . . . . . . . . . . . . .
Shares issued on reinvestment of
distributions. . . . . . . . . . . .
Shares redeemed. . . . . . . . . . . .
Net increase in shares . . . . . . . .
Shares outstanding -
Beginning balance. . . . . . . . . .
Shares outstanding - Ending balance
2,342,756,681 2,356,942 2,520,937 67 589,643
23,288,239 4,500,804 3,543,504 3,003,856 55,846
(2,340,726,795) (33,817,610) (13,901,805) (6,049,330) (316,887)
- ------------------------------------------------------------------------------
25,318,125 (26,959,864) (7,837,364) (3,045,407) 328,602
389,968,132 91,457,162 61,176,566 70,381,380 3,989,667
- ------------------------------------------------------------------------------
415,286,257 64,497,298 53,339,202 67,335,973 4,318,269
==============================================================================
STATEMENTS OF CHANGES IN NET ASSETS
For the Fiscal Year Ended June 30, 1996
Short-Term
Money Market Government Intermediate-Term Tax-Exempt Equity
Portfolio Portfolio Bond Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------
Increase in Net Assets
Operations:
Net investment income. . . . . . . . . .
Net realized gain (loss) on. . . . . . .
investment transactions. . . . . . . .
Net realized gain on call. . . . . . . .
options written. . . . . . . . . . . .
Net change in unrealized appreciation. .
(depreciation) of investments. . . . .
$ 23,088,570 $ 9,936,739 $ 7,964,153 $ 6,287,025 $ 680,156
(704) 325,356 244,623 1,129,202 (396,620)
0 0 0 0 571,222
0 (2,131,628) (2,952,477) (1,088,183) 7,557,053
- ------------------------------------------------------------------------------
23,087,866 8,130,467 5,256,299 6,328,044 8,411,811
- ------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income. . . . . . . . . .
(23,088,570) (9,936,739) (7,964,153) (6,287,025) (485,548)
- ------------------------------------------------------------------------------
Portfolio share transactions (a):
Receipt from shares sold . . . . . . . .
Receipt from shares issued on. . . . . .
reinvestment of distributions. . . . .
Shares redeemed. . . . . . . . . . . . .
2,492,777,762 79,791,554 27,470,121 834,895 39,179,945
22,304,714 9,617,201 7,652,606 6,294,106 480,960
(2,505,823,180) (37,114,026) (14,483,654) (502,681) (2,315,274)
- ------------------------------------------------------------------------------
Net increase in net assets from
Fund share transactions. . . . . . . . .
9,259,296 52,294,729 20,639,073 6,626,320 37,345,631
- ------------------------------------------------------------------------------
Total increase in net assets . . . . . . .
9,258,592 50,488,457 17,931,219 6,667,339
45,271,894
Net Assets:
Beginning of year. . . . . . . . . . . .
380,707,945 132,827,565 105,020,369 135,517,730 20,864,942
- ------------------------------------------------------------------------------
End of year. . . . . . . . . . . . . . . .
$ 389,966,537 $ 183,316,022 $ 122,951,588 $ 142,185,069 $ 66,136,836
==============================================================================
(a) Transactions in capital stock were:
Shares sold . . . . . . . . . . . . . .
Shares issued on reinvestment of
distributions . . . . . . . . . . . .
Shares redeemed . . . . . . . . . . . .
Net increase in shares. . . . . . . . .
Shares outstanding -
Beginning balance . . . . . . . . . .
Shares outstanding - Ending balance . .
2,492,777,762 39,449,589 13,385,046 406,518 2,617,366
22,304,714 4,746,836 3,725,531 3,075,446 31,130
(2,505,823,180) (18,301,375) (7,133,718) (248,827) (145,226)
- ------------------------------------------------------------------------------
9,259,296 25,895,050 9,976,859 3,233,137 2,503,270
380,708,836 65,562,112 51,199,707 67,148,243 1,486,397
- ------------------------------------------------------------------------------
389,968,132 91,457,162 61,176,566 70,381,380 3,989,667
Kiewit Mutual Fund
- ------------------
Financial Highlights
- ------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements. It should be read in conjunction with the financial statements
and notes thereto.
For the Period
For the Fiscal For the Fiscal July 28, 1994+
Year Ended Year Ended Through
June 30, 1997 June 30, 1996 June 30, 1995
--------------------------------------------
Money Market Portfolio
Net Asset Value - Beginning of
Period. . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00
--------------------------------------------
Investment Operations:
Net investment income . . . . . . 0.05 0.05 0.05
--------------------------------------------
Distributions:
From net investment income. . . . (0.05) (0.05) (0.05)
--------------------------------------------
Net Asset Value - End of Period . . $ 1.00 $ 1.00 $ 1.00
============================================
Total Return. . . . . . . . . . . . 5.43% 5.61% 5.04%1
Ratios (to average net assets)
/Supplemental Data:
Expenses 2 . . . . . . . . . . . . 0.20% 0.20% 0.30%3
Net investment income 2. . . . . . 5.31% 5.47% 5.51%3
Net assets at end of period (000). $415,285 $389,967 $380,708
For the Period
For the Fiscal For the Fiscal July 29, 1994+
Year Ended Year Ended Through
June 30, 1997 June 30, 1996 June 30, 1995
--------------------------------------------
Short-Term Government Portfolio
Net Asset Value - Beginning of
Period . . . . . . . . . . . . . . $ 2.00 $ 2.03 $ 2.00
--------------------------------------------
Investment Operations:
Net investment income. . . . . . . 0.12 0.12 0.11
Net realized and unrealized gain
(loss) on investments. . . . . . 0.01 (0.03) 0.03
--------------------------------------------
Total from investment operations 0.13 0.09 0.14
--------------------------------------------
Distributions:
From net investment income . . . . (0.12) (0.12) (0.11)
--------------------------------------------
Net Asset Value - End of Period. . . $ 2.01 $ 2.00 $ 2.03
============================================
Total Return . . . . . . . . . . . . 6.51% 4.66% 7.00%1
Ratios (to average net assets)
/Supplemental Data:
Expenses 2 . . . . . . . . . . . . 0.30% 0.30% 0.37%3
Net investment income 2. . . . . . 5.76% 6.06% 5.75%3
Portfolio turnover . . . . . . . . -* 57.52% 122.58%3
Net assets at end of period (000). $129,494 $183,316 $132,829
+ Commencement of Operations.
1 The total return for the period has not been annualized.
2 The annualized expense ratio for the Money Market Portfolio, had there been
no fees waived by the Manager, would have been 0.27%, 0.27% and 0.34% for the
fiscal years ended June 30, 1997, 1996, and for the period ended June 30,
1995, respectively. The annualized net investment income ratio for the Money
Market Portfolio, had there been no fees waived by the Manager, would have
been 5.24%, 5.40% and 5.47% for the fiscal years ended June 30, 1997, 1996 and
for the period ended June 30, 1995, respectively. The annualized expense ratio
for the Short-Term Government Portfolio, had there been no fees waived by the
Manager, would have been 0.44%, 0.43% and 0.45% for the fiscal years ended
June 30, 1997, 1996, and for the period ended June 30, 1995, respectively.
The annualized net investment income ratio for the Short-Term Government
Portfolio, had there been no fees waived by the Manager, would have been
5.62%, 5.93% and 5.67% for the fiscal years ended June 30, 1997, 1996 and for
the period ended June 30, 1995, respectively. The expense and net investment
income ratios for the fiscal year ending June 30, 1997 include expenses
allocated from the Series.
3 Annualized.
* See Kiewit Investment Trust's Note 3 to the Financial Statements for
portfolio turnover.
For the Period
For the Fiscal For the Fiscal July 25, 1994+
Year Ended Year Ended Through
June 30, 1997 June 30, 1996 June 30, 1995
--------------------------------------------
Intermediate - Term Bond Portfolio
Net Asset Value - Beginning of Period $ 2.01 $ 2.05 $ 2.00
--------------------------------------------
Investment Operations:
Net investment income. . . . . . . 0.13 0.13 0.12
Net realized and unrealized gain
(loss) on investments. . . . . . 0.02 (0.04) 0.05
--------------------------------------------
Total from investment operations 0.15 0.09 0.17
--------------------------------------------
Distributions:
From net investment income . . . . (0.13) (0.13) (0.12)
--------------------------------------------
Net Asset Value - End of Period. . . 2.03 $ 2.01 $ 2.05
============================================
Total Return . . . . . . . . . . . . 7.51% 4.48% 8.88%1
Ratios (to average net assets)
/Supplemental Data:
Expenses 4 . . . . . . . . . . . . 0.50% 0.50% 0.41%3
Net investment income 4. . . . . . 6.27% 6.37% 6.41%3
Portfolio turnover . . . . . . . . -* 86.06% 128.95%3
Net assets at end of period (000). $108,314 $122,952 $105,020
For the Period
For the Fiscal For the Fiscal July 25, 1994+
Year Ended Year Ended Through
June 30, 1997 June 30, 1996 June 30, 1995
--------------------------------------------
Tax-Exempt Portfolio
Net Asset Value - Beginning of Period $ 2.02 $ 2.02 $ 2.00
--------------------------------------------
Investment Operations:
Net investment income. . . . . . . 0.09 0.09 0.08
Net realized and unrealized gain
(loss) on investments. . . . . . 0.03 - 0.02
--------------------------------------------
Total from investment operations 0.12 0.09 0.10
--------------------------------------------
Distributions:
From net investment income . . . . (0.09) (0.09) (0.08)
From net realized capital gain . . 0.005 - -
--------------------------------------------
Total distributions. . . . . . . (0.09) (0.09) (0.08)
--------------------------------------------
Net Asset Value - End of Period. . . $ 2.05 $ 2.02 $ 2.02
============================================
Total Return . . . . . . . . . . . . 6.15% 4.55% 5.23%1
Ratios (to average net assets)
/Supplemental Data:
Expenses 4 . . . . . . . . . . . . 0.50% 0.50% 0.39%3
Net investment income 4. . . . . . 4.31% 4.47% 4.37%3
Portfolio turnover . . . . . . . . -* 100.61% 104.34%3
Net assets at end of period (000). $137,903 $142,185 $135,518
+ Commencement of Operations.
1 The total return for the period has not been annualized.
3 Annualized.
4 The annualized expense ratio for the Intermediate-Term Bond Portfolio, had
there been no fees waived by the Manager, would have been 0.58%, 0.57% and
0.53% for the fiscal years ended June 30, 1997, 1996, and for the period ended
June 30, 1995, respectively. The annualized net investment income ratio for
the Intermediate-Term Bond Portfolio, had there been no fees waived by the
Manager, would have been 6.19%, 6.30% and 6.29% for the fiscal years ended
June 30, 1997, 1996 and for the period ended June 30, 1995, respectively. The
annualized expense ratio for the Tax-Exempt Portfolio, had there been no fees
waived by the Manager, would have been 0.55%, 0.54% and 0.50% for the fiscal
years ended June 30, 1997, 1996, and for the period ended June 30, 1995,
respectively. The annualized net investment income ratio for the Tax-Exempt
Portfolio, had there been no fees waived by the Manager, would have been
4.26%, 4.43% and 4.26% for the fiscal years ended June 30, 1997, 1996 and for
the period ended June 30, 1995, respectively. The expense and net investment
income ratios for the fiscal year ending June 30, 1997 include expenses
allocated from the Series.
5 The Fund declared a dividend from net realized long-term capital gain of
$0.0026 per share during the period.
* See Kiewit Investment Trust's Note 3 to the Financial Statements for
portfolio turnover.
For the Period
For the Fiscal For the Fiscal Jan. 5, 1995+
Year Ended Year Ended Through
June 30, 1997 June 30, 1996 June 30, 1995
--------------------------------------------
Equity Portfolio
Net Asset Value - Beginning of
Period . . . . . . . . . . . . . . $ 16.58 $ 14.04 $ 12.50
--------------------------------------------
Investment Operations:
Net investment income. . . . . . . 0.13 0.13 0.11
Net realized and unrealized gain
(loss) on investments. . . . . . . 4.09 2.56 1.43
--------------------------------------------
Total from investment operations . 4.22 2.69 1.54
--------------------------------------------
Distributions:
From net investment income . . . . (0.15) (0.15) -
From net realized capital gain . . (0.09) - -
--------------------------------------------
Total distributions. . . . . . . (0.24) (0.15) -
--------------------------------------------
Net Asset Value - End of Period. . . $ 20.56 $ 16.58 $ 14.04
--------------------------------------------
Total Return . . . . . . . . . . . . 25.67% 19.24% 12.32%1
Ratios (to average net assets)
/Supplemental Data:
Expenses 6 . . . . . . . . . . . . 0.80% 0.80% 0.80%3
Net investment income 6. . . . . . 0.80% 1.34% 3.06%3
Portfolio turnover . . . . . . . . -* 16.95% 0.00%3
Average commission rate paid . . . $ -* $ 0.0637 $ -
Net assets at end of period (000). $ 88,763 $ 66,137 $ 20,865
+ Commencement of Operations.
1 The total return for the period has not been annualized.
3 Annualized.
6 For the period from January 5, 1995 through June 30, 1997, Kiewit
Investment Management Corp. (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 0.80% of the average daily net assets of the Portfolio. The annualized
expense ratio, had there been no fees waived by the Manager, would have been
0.94%, 1.05% and 2.56% for the fiscal years ended June 30, 1997, 1996, and for
the period ended June 30, 1995, respectively. The annualized net investment
income ratio for the Equity Portfolio, had there been no fees waived by the
Manager, would have been 0.66%, 1.09% and 1.30% for the fiscal years ended
June 30, 1997, 1996 and for the period ended June 30, 1995, respectively. The
expense and net investment income ratios for the fiscal year ending June 30,
1997 include expenses allocated from the Series.
* See Kiewit Investment Trust's Note 3 to the Financial Statements for
portfolio turnover and average commission rate paid.
Kiewit Mutual Fund
- ------------------
Notes to the 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 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 six
series of shares: Kiewit Money Market Portfolio, Kiewit Government 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"). As of June 30,
1997, the Kiewit Government Money Market Portfolio has not yet commenced
operations. Prior to December 6, 1994, the Fund was known as Kiewit
Institutional Fund.
Effective March 1, 1997, the Portfolios adopted a Master/Feeder
configuration, hereafter referred to as the "Conversion," through the
contribution of the investment securities held as of February 28, 1997 at
market value to a corresponding series of Kiewit Investment Trust (the
"Trust"). In return for the contributed securities, each Portfolio received
an ownership interest of equal value in its corresponding series of the Trust.
The investment objectives of the six Portfolios are as follows: Money Market
Portfolio is high current income, while maintaining a stable share price by
investing in short-term money market securities; Government Money Market
Portfolio is high current income, while maintaining a stable share price by
investing in securities issued or guaranteed by the U.S. Government, its
agencies or instrumentalities; Short-Term Government Portfolio is a high level
of current income, consistent with the maintenance of principal and liquidity;
Intermediate-Term Bond Portfolio is a high level of current income, consistent
with reasonable risk; Tax-Exempt Portfolio is a high level of current income,
exempt from Federal income tax, consistent with reasonable risk; Equity
Portfolio is long-term capital appreciation. Unlike other investment
companies which directly acquire and manage their own portfolio of securities,
each Portfolio seeks to achieve its investment objective by investing all of
its investable assets in a corresponding series of shares of the Trust, an
open-end, management investment company that issues series of shares
(individually and collectively, the "Series") having the same investment
objective, policies and limitations as each of the Portfolios. As of June 30,
1997, each Portfolio owned virtually 100% of the ownership interest in its
corresponding Series. The performance of the Portfolios is directly affected
by the performance of the Series. The financial statements of the Trust,
including the Schedules of Investments, are included elsewhere in this report
and should be read in conjunction with the Fund's Financial Statements.
2. Significant Accounting Policies. The following is a summary of the
significant accounting policies of the Fund:
Security Valuation. Valuation of securities by the Series is discussed in
Note 2 of the Trust's Notes to Financial Statements which are included
elsewhere in this report.
Federal Income Taxes. Each Portfolio is treated as a separate entity for
Federal income tax purposes and each intends to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code and to
distribute all of its taxable and tax-exempt income to its shareholders.
Therefore, no Federal income tax provision is required. The Short-Term
Government Portfolio, Intermediate-Term Bond Portfolio and Tax Exempt-
Portfolio reclassified $(58,182), $(2,654) and $(98,764), respectively,
from distributions in excess of net investment income to be paid-in capital.
The Short-Term Government Portfolio, Intermediate- Term Bond Portfolio, Tax-
Exempt Portfolio and Equity Portfolio reclassified $405,913, $6,711,
$(359,036) and $(1,547,808), respectively, from accumulated net realized gain
(loss) to paid-in capital. These reclassifications were made to present
undistributed net investment income and accumulated net realized gain (loss)
on investment on a tax basis and have no impact on the net asset value of the
Portfolios. At June 30, 1997, the Money Market Portfolio, Short- Term
Government Portfolio and Intermediate-Term Bond Portfolio had a net tax basis
capital loss carryforward available to offset future net capital gains of
approximately $1,000, $314,000 and $355,000, respectively, which will expire
as follows:
Capital Loss Expiration
Carryforward Date
--------------------------------------------
Money Market Portfolio . . . . . . . . . . $ 1,000 06/30/2004
Short-Term Government Portfolio. . . . . . 102,000 06/30/2003
212,000 06/30/2005
Intermediate-Term Bond Portfolio . . . . . 355,000 06/30/2003
Interest Income and Distributions to Shareholders. The Portfolios record
their share of the respective Series' income, expenses and realized and
unrealized gains and losses daily. Prior to the Conversion, interest income
and expenses were accrued as earned or incurred. Dividends were recorded on
the ex-dividend date. Additionally, each Portfolio records its own expenses
as incurred. Prior to the Conversion, distributions of net investment income
consisted 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 Kiewit Equity
Portfolio, are declared daily from net investment income and paid to
shareholders monthly. The Fund's policy is to distribute substantially all
net income from the Kiewit Equity Portfolio annually. Distributions of net
capital gains realized by each Portfolio will be made annually.
Deferred Organization Costs. Organization costs incurred by each Portfolio
have been deferred and are being amortized using the straight-line method over
a five-year period beginning on the date that each Portfolio commenced
operations. In the event that any of the initial shares of a Portfolio are
redeemed during the amortization period by any holder thereof, the redemption
proceeds will be reduced by any unamortized organization expenses in the same
proportion as the number of initial shares being redeemed bears to the number
of initial shares outstanding at the time of such redemption.
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.
3. Investment Transactions. During the fiscal year ended June 30, 1997,
additions and reductions in the respective Series were as follows:
Money Short-Term Intermediate-
Market Government Term Bond Tax-Exempt Equity
-------------------------------------------------------------------
Additions $684,042,333 $133,962,166 $107,262,591 $138,876,680 $81,690,510
Reductions 274,465,728 6,424,755 756,480 2,474,630 3,074,322
4. Management and Administration Fee and Other Transactions with Affiliates.
Prior to the Conversion, the Fund, on behalf of each Portfolio, employed
Kiewit Investment Management Corporation ("KIMC"), an indirect, wholly-owned
subsidiary of Peter Kiewit Sons', Inc., a construction, mining, energy and
telecommunications company, to furnish investment advisory and other services
to the Fund. Pursuant to the Investment Management Agreement with the Fund
with respect to each Portfolio, KIMC managed the investment and reinvestment
of their assets, provided the Fund with records concerning KIMC's activities
which the Fund was required to maintain, and rendered regular reports to the
Fund's officers and the Board of Trustees.
For its services under the Investment Management Agreement for each Portfolio,
KIMC received fees from the Portfolios at the following annual rates of their
average monthly net assets: Money Market Portfolio - 0.20%; Short-Term
Government Portfolio - 0.30%; Intermediate-Term Bond Portfolio - 0.40%; Tax-
Exempt Portfolio - 0.40%; and Equity Portfolio - 0.70%.
Effective March 1, 1997, the Fund's Investment Management Agreement with KIMC
ended and the Fund entered into an Administrative Service Agreement with KIMC.
Pursuant to this agreement, KIMC performs various services, including:
supervision of the services provided by the Portfolio's custodian, transfer
and dividend disbursing agent and others who provide services to the Fund for
the benefit of the Portfolio; providing shareholders with information about
the Portfolio and their investment as they or the Fund may request; assisting
the Portfolio in conducting meetings of the shareholders; furnishing
information as the Board of Trustees may require regarding the corresponding
Series; and any other administrative services for the benefit of the Portfolio
as the Board of Trustees may reasonably request. For its services, each
Portfolio pays KIMC a monthly fee equal to one-twelfth of 0.02% of the
Portfolio's average net assets. Fees earned by KIMC, under the Administration
Agreement, are included in the Management Fee shown on the Statement of
Operations.
KIMC has agreed to waive all or a portion of its management fee and assume
certain fund expenses in an amount that will limit annual operating expenses
to not more than the following percentage of the average daily net assets of
each Portfolio: Money Market Portfolio - 0.20%; Short-Term Government
Portfolio - 0.30%; Intermediate-Term Bond Portfolio - 0.50%; Tax-Exempt
Portfolio - 0.50%; and Equity Portfolio - 0.80%. These undertakings may be
amended or rescinded at any time in the future.
The following table summarizes the management fees and administration service
fees for the fiscal year ending June 30, 1997:
Gross Fee Fees Waived
--------------------------------------------
Money Market Portfolio $653,471 $183,399
Short-Term Government Portfolio 342,788 140,365
Intermediate-Term Bond Portfolio 328,843 52,610
Tax-Exempt Portfolio 389,447 27,760
Equity Portfolio 340,810 68,968
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 Trust and Fund pursuant to separate Administration Agreements with the
Fund and the Trust. 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 Trust, on behalf of each Series. Each Series pays
its proportionate share of a complex-wide annual fee of 0.015% of the Trust's
aggregate total average daily net assets in excess of $125 million. This
asset-based fee is determined on a total average daily net asset basis, and
is subject to prescribed fixed minimums. Prior to March 1, 1997 Rodney Square
received a monthly Administration fee from the Fund at an annual rate of
$50,000 per Portfolio, plus out-of-pocket expenses.
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 Trust and Fund pursuant to separate
Accounting Services Agreements, with the Fund and the Trust. For its
services, Rodney Square receives from the Trust, on behalf of each Series, the
Series' proportionate share of a complex-wide annual fee of 0.015% of the
Trust's aggregate total average daily net assets in excess of $100 million.
This asset-based fee is determined on a total average daily net asset basis,
and is subject to prescribed fixed minimums. Prior to March 1, 1997 Rodney
Square received 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 KIMC.
Kiewit Mutual Fund
- ------------------
Report of Independent Accountants
- ------------------------------------------------------------------------------
To the Trustees and Shareholders of Kiewit Mutual Fund:
In our opinion, the accompanying statements of assets and liabilities 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 Kiewit Money Market Portfolio, Kiewit Short-Term Government
Portfolio, Kiewit Intermediate-Term Bond Portfolio, Kiewit Tax-Exempt
Portfolio and Kiewit Equity Portfolio (five of the series constituting Kiewit
Mutual Fund, hereafter referred to as the "Fund") at June 30, 1997, the
results of each of their operations for the year then ended, the changes in
each of their net assets for each of the two years in the period then ended
and the financial highlights for 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 audit 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 provide a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
Philadelphia, Pennsylvania
August 7, 1997
Kiewit Mutual Fund
- ------------------
Tax Information (Unaudited)
- ------------------------------------------------------------------------------
For the fiscal year ended June 30, 1997, the Equity Portfolio and Tax-Exempt
Portfolio paid distributions of $0.037 and $0.0026 per share, respectively,
from net long-term capital gains. Pursuant to Section 852 of the Internal
Revenue Code of 1986, for the fiscal year ended June 30, 1997, the Equity
Portfolio and Tax-Exempt Portfolio designate $155,262 and $173, 959,
respectively, as capital gain distributions. The Tax-Exempt Portfolio
designates $6,079,282 as tax-exempt dividends.
Kiewit Investment Trust
- -----------------------
Annual Report/June 30, 1997
- ------------------------------------------------------------------------------
(The following pages should be read in conjunction with Kiewit Mutual Fund
Annual Financial Statements)
Kiewit Investment Trust / Money Market Series
- ---------------------------------------------
Investments / June 30, 1997
(Showing Percentage of Total Value of Net Assets)
- ------------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating* Amount (Note 2)
----------- --------- --------
Certificates of Deposit - 0.7%
U.S. Branches, Foreign Banks - 0.7%
Bank of Nova Scotia, 5.63%,
08/08/97 (Cost $3,000,201) . . P1/A1+ $ 3,000,000 $ 3,000,201
-----------
Commercial Paper - 84.5%
Aerospace - 0.2%
Lockheed Martin Corp., 5.804%,
07/16/97 . . . . . . . . . . . P2/A2 1,000,000 997,592
-----------
Automobiles - 4.9%
Daimler-Benz North America Corp.,
5.659% - 5.752%,
07/24/97 - 10/08/97. . . . . . P1/A1 20,500,000 20,285,551
-----------
Banks - 3.5%
ANZ, 5.679%, 07/02/97. . . . . . P1/A1+ 4,700,000 4,699,269
Bank of Nova Scotia, 5.659%,
09/02/97 . . . . . . . . . . . P1/A1+ 5,000,000 4,951,175
Westpac Capital Corp., 5.68%,
09/05/97 . . . . . . . . . . . P1/A1+ 5,000,000 4,948,667
-----------
14,599,111
-----------
Chemicals - 7.1%
E.I. DuPont De Nemours and Co.,
5.593%, 07/08/97 . . . . . . . P1/A1+ 5,000,000 4,994,653
Great Lakes Chemical Corp., 5.553%,
07/15/97 - 07/22/97. . . . . . P1/A1+ 10,000,000 9,973,167
Monsanto Co., 5.553% - 5.695%,
07/09/97 - 07/28/97. . . . . . P1/A1 15,000,000 14,966,080
-----------
29,933,900
-----------
Computers - 3.6%
International Business Machines
Corp., 5.591% - 5.603%, 07/31/97
- 08/28/97 . . . . . . . . . . P1/A1+ 15,000,000 14,900,658
-----------
Electronics - 3.6%
General Electric Co., 5.554% -
5.675%, 07/07/97 - 09/10/97. . P1/A1+ 15,000,000 14,924,885
-----------
Financial Services - 10.6%
BTM Capital Corp., 5.688%, 08/01/97 P1/A1 2,681,000 2,667,956
Deutsche Bank Financial, Inc.,
5.743%, 08/06/97 . . . . . . . P1/A1+ 7,000,000 6,960,520
Ford Motor Credit Co. Inc, 5.625%
- 5.69%, 07/10/97 - 09/09/97 . P1/A1 20,000,000 19,873,423
General Electric Capital Corp.,
5.478% - 5.68%, 07/03/97 -
08/04/97 . . . . . . . . . . . P1/A1+ 15,000,000 14,966,784
-----------
44,468,683
-----------
Food & Beverages - 3.1%
Anheuser - Busch Co., Inc., 5.625%,
08/18/97 . . . . . . . . . . . P1/A1 5,000,000 4,963,000
Conagra, Inc., 5.767% - 5.78%,
07/15/97 - 07/25/97. . . . . . P2/A2 4,500,000 4,486,783
Hershey Foods Corp., 5.487%,
07/01/97 . . . . . . . . . . . P1/A1+ 3,500,000 3,500,000
-----------
12,949,783
-----------
Freight & Shipping - 5.9%
California & Hawaiian Sugar Co.,
Inc., 5.769% - 5.926%, 07/17/97
- 07/22/97 . . . . . . . . . . P2/A2 3,000,000 2,991,017
Matson Navigation Co., Inc., 5.58%
- 5.648%, 07/01/97 - 07/31/97. P1/A1 21,796,000 21,729,399
-----------
24,720,416
-----------
Games & Toys - 5.3%
Hasbro, Inc., 5.626% - 5.741%,
07/18/97 - 10/07/97. . . . . . P1/A1 22,400,000 22,215,966
-----------
Leasing - 4.8%
Diamond Lease, 5.653%, 07/02/97. P1/A1 5,000,000 4,999,218
Hertz Corp., 5.657% - 5.684%,
07/11/97 - 09/23/97. . . . . . P1/A1 15,000,000 14,906,043
-----------
19,905,261
-----------
Machinery & Heavy Equipment - 3.5%
Dover Corp., 5.557% - 5.574%,
07/14/97 - 07/22/97. . . . . . NR/A1 14,500,000 14,463,311
-----------
Oil - 10.1%
Arco British Ltd., 5.581% - 5.718%,
07/15/97 - 09/10/97. . . . . . P1/A1 22,674,000 22,544,616
Chevron Transport Corp., 5.616%,
08/13/97 . . . . . . . . . . . P1/A1+ 5,000,000 4,966,794
Chevron U.K. Investment plc, 5.604%
- 5.769%, 07/23/97 - 08/14/97. P1/A1+ 13,000,000 12,938,278
Sonat, Inc., 5.819%, 07/18/97. . P2/A2 1,700,000 1,695,360
-----------
42,145,048
-----------
Pharmaceuticals Preparations - 1.7%
Schering Corp., 5.72%, 08/19/97. P1/A1+ 7,000,000 6,946,549
-----------
Printing & Publishing - 5.1%
American Greetings Corp., 5.584%,
07/14/97 . . . . . . . . . . . P1/A1 2,000,000 1,995,991
The Dun & Bradstreet Corp., 5.567%
- 5.702%, 07/21/97 - 09/23/97. NR/A1 19,500,000 19,314,028
-----------
21,310,019
-----------
Railroads - 1.9%
CSX Corp., 5.803% - 5.853%, 07/17/97
- 07/24/97. . . . . . . . . . . P2/A2 4,000,000 3,988,021
Union Pacific Corp., 5.80% - 5.936%,
07/14/97 - 09/17/97 . . . . . . P2/A2 4,000,000 3,965,198
-----------
7,953,219
-----------
Retail Merchandising - 3.6%
Dayton Hudson Corp., 5.713%,
07/08/97. . . . . . . . . . . . P2/A2 1,500,000 1,498,346
H.D. Real Estate Funding, Inc.,
5.668%, 07/07/97. . . . . . . . P1/A1+ 8,380,000 8,372,194
Penney (J.C.) Co., Inc. 5.598%,
08/25/97. . . . . . . . . . . . P1/A1 5,000,000 4,957,680
-----------
14,828,220
-----------
Rubber & Plastic - 1.9%
Rubbermaid, Inc., 5.563% - 5.602%,
07/01/97 - 08/04/97 . . . . . . P1/A1 8,000,000 7,973,744
-----------
Securities Dealers - 4.1%
Merrill Lynch & Co., Inc., 5.613% -
5.63%, 07/14/97 - 08/19/97. . . P1/A1+ 14,000,000 13,934,016
Merrill Lynch Intl., 5.611%,
07/07/97. . . . . . . . . . . . P1/A1+ 3,000,000 2,997,215
-----------
16,931,231
-----------
Total Commercial Paper (Cost
$352,453,147) . . . . . . . . 352,453,147
-----------
U.S. Government Agency Obligations
- 8.6%
Federal National Mtge. Assoc. Notes,
5.27% - 5.79%, 08/01/97 - 10/16/97 Aaa/NR 15,000,000 14,999,675
Student Loan Marketing Assoc. Notes,
5.615% - 5.26%, 07/17/97 - 09/28/98 Aaa/NR 20,960,000 20,954,951
-----------
Total U.S. Government Agency
Obligations (Cost $35,954,626) 35,954,626
-----------
Repurchase Agreement - 6.1%
With Paine Webber Group, Inc.:
At 6.20% dated 06/30/97, to be
repurchased at $25,347,365 on
07/01/97, collateralized by
Federal National Mortgage
Association securities at various
rates and maturities to 03/01/26
(market value $25,853,991)
(COST $25,343,000). . . . . . . 25,343,000
-----------
Total Investments (Cost $416,750,974)+
- 99.9% . . . . . . . . . . . . . 416,750,974
Other Assets and Liabilities, Net - 0.1% 461,666
-----------
Net Assets - 100.0% . . . . . . . . $417,212,640
===========
* Unaudited.
+ Cost for Federal income tax purposes and financial reporting purposes.
NR Not Rated. While not rated by Moody's or S&P, the Fund adviser considers
the security to be of the appropriate quality for the Trust.
Kiewit Investment Trust / Short-Term Bond Series
- ------------------------------------------------
Investments / June 30, 1997
(Showing Percentage of Total Value of Net Assets)
- ------------------------------------------------------------------------------
Principal Value
Amount (Note 2)
--------- --------
U.S. Government Agency Obligations - 64.3%
Federal Home Loan Banks Notes - 13.2%
Federal Home Loan Banks Notes, 5.215% -
5.24%, 07/08/98 - 07/20/98 . . . . . . $10,000,000 $ 9,946,899
Federal Home Loan Banks Notes*, 4.875% -
5.40%, 12/02/98 - 10/20/00 . . . . . . 7,425,000 7,227,429
-----------
17,174,328
-----------
Federal Home Loan Mortgage Corporation Notes
- 12.7%
Federal Home Loan Mtge. Corp. Notes, 5.37%
- 5.94%, 06/01/98 - 12/07/98 . . . . . 11,695,000 11,664,169
Federal Home Loan Mtge. Corp. Notes*, 4.60%
- 5.375%, 04/08/98 - 04/13/00. . . . . 4,925,000 4,808,263
-----------
16,472,432
-----------
Federal National Mortgage Association Notes
- 34.5%
Federal National Mtge. Assoc. Notes, 4.75%
- 9.05%, 10/03/97 - 10/02/01 . . . . . 38,975,000 38,921,626
Federal National Mtge. Assoc. Notes*, 5.00%
- 6.14%, 04/06/00 - 04/21/00 . . . . . 6,000,000 5,949,400
-----------
44,871,026
-----------
Student Loan Marketing Association Notes - 3.9%
Student Loan Marketing Assoc. Notes, 6.365%,
08/12/98 . . . . . . . . . . . . . . . 5,000,000 5,024,800
-----------
Total U.S. Government Agency Obligations
(Cost $83,403,096) . . . . . . . . . 83,542,586
-----------
U.S. Treasury Notes - 29.6%
U.S. Treasury Notes, 5.00% - 8.00%, 01/31/98
- 11/30/00 (COST $38,441,430). . . . . 38,000,000 38,537,268
-----------
Repurchase Agreements - 3.6%
With Merrill Lynch & Co. Inc.: At 6.20%
dated 06/30/97, to be repurchased at
$4,713,753 on 07/01/97, collateralized by
Government National Mortgage Association
securities at various rates and maturities
to 05/20/97 (market value $4,810,448) (COST
$4,713,000). . . . . . . . . . . . . . 4,713,000
-----------
Total Investments (Cost $126,557,526)+ - 97.5% 126,792,854
Other Assets and Liabilities, Net - 2.5% . 3,313,153
-----------
Net Assets - 100.0%. . . . . . . . . . . . $130,106,007
===========
* Denotes a Variable or Floating Rate Note. Variable and Floating Rate Notes
are instruments whose rates change periodically. The rates shown are the
rates as of June 30, 1997.
+ Cost for Federal income tax purposes was $126,590,396. At June 30, 1997,
net unrealized appreciation was $202,458. This consisted of aggregate gross
unrealized appreciation for all securities in which there was an excess of
market value over tax cost of $550,831 and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
market value of $348,373.
Kiewit Investment Trust / Intermediate-Term Bond Series
- -------------------------------------------------------
Investments / June 30, 1997
(Showing Percentage of Total Value of Net Assets)
- ---------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating* Amount (Note 2)
----------- --------- --------
Corporate Bonds - 77.9%
Automobile Manufacturing - 2.6%
Ford Motor Co., 8.875%,
04/01/06 . . . . . . . . . . . . A1/A+ $ 2,500,000 $ 2,781,250
-----------
Banks - 11.9%
ABN-Amro Bank - Global Note, 7.55%,
06/28/06 . . . . . . . . . . . . Aa2/AA- 3,000,000 3,090,000
Security Pacific Corp., 6.00%,
05/01/00 . . . . . . . . . . . . A1/A+ 2,825,000 2,789,687
Star Bank, N.A., 6.375%, 03/01/04. A3/A- 2,000,000 1,925,000
Suntrust Banks, Inc., 6.00%, 02/15/26 A2/A 2,000,000 1,862,500
U.S. Bancorp, 7.50%, 06/01/26. . . A2/A- 3,040,000 3,146,400
-----------
12,813,587
-----------
Financial - 6.5%
BHP Finance, USA, 8.50%, 12/01/12. A2/A 2,500,000 2,765,625
General Motors Acceptance Corp.,
8.875%, 06/01/10 . . . . . . . . A3/A- 1,050,000 1,210,125
United Postal Savings Assoc., 9.00%,
07/26/99 . . . . . . . . . . . . Aaa/NR 3,000,000 3,146,250
-----------
7,122,000
-----------
Food & Beverage - 2.0%
Seagram, Joseph E. & Sons, Inc.,
8.375%, 02/15/07 . . . . . . . . A2/A 2,035,000 2,207,975
-----------
Foreign - 6.2%
Hanson Overseas B.V., 7.375%,
01/15/03 . . . . . . . . . . . . A3/A- 3,000,000 3,056,250
Swedish Export Credit, 9.875%,
03/15/38 . . . . . . . . . . . . Aa3/AA+ 2,000,000 2,135,000
WMC Finance USA, 6.50%, 11/15/03 . A2/A 1,600,000 1,576,000
-----------
6,767,250
-----------
Industrial & Miscellaneous - 3.4%
Rohm & Haas Holdings, 9.80%, 04/15/20 A1/A 3,075,000 3,755,156
-----------
Insurance - 2.6%
Lincoln National Corp., 7.25%,
05/15/05 . . . . . . . . . . . . A2/A 2,850,000 2,850,000
-----------
Manufacturing - 20.9%
Air Products & Chemicals, 8.50%,
04/01/06 . . . . . . . . . . . . A2/A 3,000,000 3,213,750
Alcan Aluminum, Inc., 9.625%,
07/15/19 . . . . . . . . . . . . A2/A- 5,000,000 5,450,000
Consolidated Coal - Medium Term
Note, 8.21%, 06/21/04. . . . . . A2/A- 3,250,000 3,447,275
E & G, Inc., 6.80%, 10/15/05 . . . Baa2/A 2,500,000 2,434,375
Enclean, Inc., 7.50%, 08/01/01 . . A1/A+ 1,000,000 1,033,750
English China Clays Delaware, Inc.,
7.375%, 10/01/02 . . . . . . . . A3/A- 5,000,000 5,068,750
Monsanto Co., 8.13%, 12/15/06. . . A1/A 2,000,000 2,120,000
-----------
22,767,900
-----------
Merchandising & Retail - 5.4%
Mercantile Stores, Inc., 6.70%,
09/15/02 . . . . . . . . . . . . A1/A+ 4,000,000 4,000,000
Penney (J.C.) Co., Inc., 6.125%,
11/15/03 . . . . . . . . . . . . A2/A 2,000,000 1,905,000
-----------
5,905,000
-----------
Security & Commodity Brokers, Dealers
- 7.0%
Lehman Brothers Holdings, Inc.,
7.25%, 10/15/03. . . . . . . . . Baa1/A 3,000,000 3,003,750
Morgan Stanley Group, Inc., 7.50%,
09/01/99 . . . . . . . . . . . . A1/A+ 3,000,000 3,071,250
Salomon, Inc., 7.75%, 05/15/00 . . Baa1/BBB 1,500,000 1,537,500
-----------
7,612,500
-----------
Moody's/S&P Principal Value
Rating* Amount (Note 2)
----------- --------- --------
Transportation - 9.4%
Canadian National Railway Co.,
6.625%, 05/15/03 Baa2/BBB $ 3,000,000 $ 2,947,500
Chicago & Northwestern, 6.25%,
07/30/12 A1/A 2,831,228 2,668,432
Hertz Corp., 7.00%, 05/01/02 A3/A- 2,500,000 2,500,000
Union Pacific Corp., 6.12%, 02/01/04 Aa3/A 2,280,000 2,154,600
------------
10,270,532
------------
TOTAL CORPORATE BONDS (COST $84,740,961) 84,853,150
------------
Mortgage Backed Securities - 5.2%
Federal Home Loan Mtge. Corp., Ser. 125A
Plan C REMIC, 8.75%, 03/15/00 NR/NR 625,217 640,232
Federal National Mtge. Assoc., Pool
#326277, 7.00%, 05/01/09 NR/NR 1,405,362 1,402,726
Government National Mtge. Assoc., Ser.
1997-5 PE, 7.00%, 03/20/02 NR/NR 3,567,983 3,594,078
-----------
TOTAL MORTGAGE BACKED SECURITIES (COST $5,620,988) 5,637,036
-----------
U.S Government Agency Obligations - 6.9%
Federal Home Loan Banks Notes, 7.20%,
09/25/01 Aaa/NR 3,000,000 3,000,030
Student Loan Marketing Assoc. Notes,
5.615%, 12/24/97 Aaa/NR 3,000,000 3,001,529
Student Loan Marketing Assoc. Notes,
5.37%, 02/17/98** Aaa/NR 1,500,000 1,500,915
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $7,481,365) 7,502,474
-----------
U.S. Treasury Notes- 1.4%
U.S. Treasury Notes, 5.75%, 10/31/00
(COST $1,475,676) NR/NR 1,500,000 1,476,735
-----------
Commercial Paper - 4.1%
Food & Beverages - 0.9%
Whitman Corp., 5.854%, 07/08/97 P2/A2 1,000,000 998,872
-----------
Freight & Shipping - 0.9%
California & Hawaiian Sugar Co., Inc.,
5.769%, 07/17/97 P2/A2 1,000,000 997,453
-----------
Railroads - 1.4%
CSX Corp., 5.84%, 07/21/97 P2/A2 1,500,000 1,495,167
-----------
Retail Merchandising - 0.9%
Dayton Hudson Corp., 5.752%, 07/14/97 P2/A2 1,000,000 997,935
-----------
TOTAL COMMERCIAL PAPER (COST $4,489,427) 4,489,427
-----------
Repurchase Agreements - 2.9%
With Paine Webber Group, Inc.: At 6.20% dated 06/30/97,
to be repurchased at $3,156,544 on 07/01/97, collateralized
by Federal National Mortgage Association securities at various
rates and maturities to 05/01/26 (market value $3,220,184)
(COST $3,156,000) 3,156,000
-----------
Value
(Note 2)
--------
TOTAL INVESTMENTS (COST $106,964,417)+ - 98.4% $107,114,822
OTHER ASSETS AND LIABILITIES, NET - 1.6% 1,763,812
-----------
NET ASSETS - 100.0% $108,878,634
* Unaudited.
** Denotes a Variable or Floating Rate Note. Variable and Floating Rate Notes
are instruments whose rates change periodically. The rates shown are the
rates as of June 30, 1997.
+ Cost for Federal income tax purposes was $106,790,442. At June 30, 1997,
net unrealized appreciation was $324,380. This consisted of aggregate gross
realized appreciation for all securities in which there was an excess of
market value over tax cost of $916,566 and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
market value of $592,186.
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.
Kiewit Investment Trust/Tax-Exempt Series
- -----------------------------------------
Investments/June 30, 1997
(Showing Percentage of Total Value of Net Assets)
- ----------------------------------------------------------------------------
Moody's/S&P Principal Value
Rating* Amount (Note 2)
----------- --------- --------
Municipal Bonds - 99.2%
Alabama - 1.0%
Univ. of South Alabama (Hosp. &
Auxilary Rev.), 4.75%, 05/15/10,
Callable 05/15/04 @ 102 Aaa/AAA $ 1,480,000 $ 1,400,450
-----------
Arizona - 3.9%
Maricopa County, AZ Unified School
Dist. #41, Ser. E, 6.50%, 07/01/08,
Prerefunded 07/01/02 @ 100 Aaa/AAA 1,000,000 1,090,000
Phoenix, AZ Civic Imp. Corp. Airport
Term Excise Tax Rev., 7.80%, 07/01/11,
Partially Prerefunded 07/01/97 @ 102 NR/AA+ 2,000,000 2,065,820
Scottsdale, AZ Ind. Dev. Auth. Hosp.
Rev. (Scottsdale Memorial Hosp.),
Ser. A, 6.50%, 09/01/03 Aaa/AAA 2,000,000 2,195,000
-----------
5,350,820
-----------
California - 2.1%
Laguna Beach, CA Gen. Oblig., 6.60%,
08/15/09, Callable 08/15/01 @ 102 Aa/AA 1,230,000 1,325,325
San Francisco, CA (City & County
Public Safety Imp. Proj.), Ser. 1990C,
6.10%,06/15/06, Callable 06/15/00 @ 102 A1/AA- 1,510,000 1,585,500
-----------
2,910,825
-----------
Colorado - 0.8%
Westminster, CO Sales & Use Tax Rev.
(Post Proj.), Ser. B, 6.25%, 12/01/05 Aaa/AAA 1,040,000 1,140,293
-----------
Florida - 3.9%
Orange County, FL Solid Waste Fac. Rev.,
6.375%, 10/01/07, Callable 10/01/02
@ 102 Sinking Fund 10/01/05 @ 100 Aaa/AAA 4,910,000 5,339,625
-----------
Hawaii - 3.1%
Hawaii State Ref., Ser. BV, 6.00%,
11/01/04 Aaa/AAA 1,000,000 1,056,250
Honolulu, HI Gen. Oblig. Ltd., 5.50%,
01/01/04 Aa/AA 1,600,000 1,664,000
Honolulu, HI City & County Gen.
Oblig. Ltd., 5.40%, 04/01/05 Aa/AA 1,500,000 1,554,375
-----------
4,274,625
-----------
Illinois - 4.4%
Illinois State, Gen Oblig., 6.00%,
10/01/00 Aa3/AA- 1,250,000 1,307,812
Illinois State Health Fac. Auth.
(La Grange Memorial Hosp.), 5.50%,
05/15/23, Prerefunded 05/15/03 @ 102 Aaa/AAA 2,445,000 2,591,700
Illinois State Toll Highway Priority
Rev. Ref., Ser. A, 3.50%, 01/01/05,
Callable 01/01/03 @ 100 A1/A 2,500,000 2,268,750
-----------
6,168,262
-----------
Indiana - 4.4%
Indiana Bond Bank Special Prog., Ser. A,
6.25%, 08/01/09, Callable 02/01/98
@ 102 Aaa/AAA 2,450,000 2,514,019
Indiana Univ. (Student Fee), Ser. K,
6.50%, 08/01/05 Aa/AA- 1,935,000 2,138,175
Indianapolis, IN Local Public Imp.
Bond Bank, 5.30%, 01/10/00 Aa/AA 1,500,000 1,531,875
-----------
6,184,069
-----------
Kansas - 4.1%
Merriam, KS Hosp. Rev. (Shawnee Med.
Ctr. Inc. Proj. A), 7.25%, 09/01/21,
Prerefunded 09/01/01 @ 102 NR/AAA 5,090,000 5,707,163
-----------
Massachusetts - 3.9%
Massachusetts State Health & Educ. Fac.,
(St. Joseph Hosp.), Ser. C, 9.50%,
10/01/20, Prerefunded 10/01/99 @ 102 NR/NR 4,800,000 5,358,000
-----------
Michigan - 6.2%
Kalamazoo, MI Hosp. Fin. Auth., 6.25%,
07/01/04, Callable 07/01/99 @100 Aaa/AAA 1,000,000 1,031,250
Michigan Municipal Bond Auth. Rev.,
6.95%, 05/15/11, Partially Prerefunded
05/15/01 @ 102 Aa/AA 1,575,000 1,722,656
Michigan State Bldg. Auth. Rev. Ref.
Bond, Ser. 1, 6.20%, 10/01/02 A1/AA- 5,450,000 5,831,500
-----------
8,585,406
-----------
Minnesota - 5.3%
Minnesota State Gen. Oblig. Unltd.,
4.75%, 05/01/01 Aaa/AA+ 5,000,000 5,056,250
Ramsey County, MN Gen. Oblig. Unltd.,
4.75%, 02/01/05 Aaa/AA+ 1,000,000 1,042,500
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 1,321,875
-----------
7,420,625
-----------
Mississippi - 2.3%
Jackson, MS Public School Dist., 5.90%,
07/01/03, Callable 07/01/02 @ 100 A1/AA- 2,000,000 2,095,000
Mississippi State Gen. Oblig. Unltd.,
5.80%, 12/15/07, Callable 12/15/02
@ 100 Aaa/AA 1,000,000 1,061,250
-----------
3,156,250
-----------
Missouri - 1.4%
Springfield, MO Public Utility Rev.,
5.25%, 03/01/07, Callable 09/01/97
@ 100.50 Aa/AA 2,000,000 2,010,500
-----------
Nebraska - 15.4%
Douglas County, NE Zoo Fac. Rev.
(Henry Doorly Zoo Aquarium Proj.), 6.00%,
06/01/03, Callable 06/01/98 @ 100 NR/NR 4,250,000 4,262,835
Douglas County, NE Hosp. Auth. No. 2
(Catholic Health-Archbishop Mercy), 7.25%,
11/01/21, Prerefunded 11/01/01 @ 102 NR/AA- 4,350,000 4,877,438
Lancaster County, NE Hosp. Auth. No. 1
(Sisters of Charity), 6.375%, 05/15/05,
Callable 05/15/01 @ 102 Aaa/AAA 2,530,000 2,713,425
Nebraska Public Power Dist. Nuclear Fac.,
5.40%, 07/01/01 Aaa/AAA 3,370,000 3,479,525
Nebraska Public Power Dist. Rev. Power
Supply Sys., Ser. C, 4.40%, 01/01/03 A1/A+ 2,120,000 2,088,200
Omaha, NE Ref. Rev., 4.15%, 10/15/97 Aaa/AAA 1,550,000 1,551,767
Omaha, NE Gen. Oblig., 4.75%, 12/01/01 Aaa/AAA 1,070,000 1,086,050
Omaha, NE Public Power Dist., Ser. B,
4.90%, 02/01/02 Aa/AA 1,175,000 1,195,562
-----------
21,254,802
-----------
New Mexico - 3.3%
New Mexico State Severance Tax, Ser. A,
5.50%, 07/01/01 Aa2/AA 2,027,000 2,105,546
New Mexico State Severance Tax, Ser.
1992C, 5.60%, 07/01/02, Callable
07/01/97 @ 101.50 Aa/AA 2,400,000 2,436,000
-----------
4,541,546
-----------
New York - 5.7%
Metropolitan Trans. Auth., NY, Ser. A,
5.50%, 07/01/08, Callable 07/01/06
@ 102 Aaa/AAA 3,130,000 3,247,375
Municipal Assistance Corp. For New
York City, Ser. H, 5.25%, 07/01/03 Aa2/AA- 3,125,000 3,214,844
New York, NY Corpus M-Strips, 6.00%,
08/01/11, Callable 08/01/97 @ 100 NR/NR 1,400,000 1,403,500
-----------
7,865,719
-----------
North Dakota - 0.9%
Lakota, ND (Cargill Proj.), Ser. 1996,
5.00%, 09/01/00 Aa3/NR 1,190,000 1,209,337
-----------
Ohio - 0.7%
Ohio State Public Fac. (Community Higher
Educ. Cap. Fac.), Ser. II-A, 4.30%,
12/01/08 Aaa/AAA 1,000,000 940,000
-----------
Oklahoma - 4.8%
Tulsa, OK Gen. Oblig. Unltd. Ref., Ser.
B, 6.20%, 12/01/03, Callable 12/01/01
@ 100 Aa/AA 2,840,000 3,013,950
Tulsa County, OK Independent School Dist.
No. 1 Gen. Oblig. Unltd., 5.00%, 02/01/01 Aa/NR 3,500,000 3,561,250
-----------
6,575,200
-----------
Rhode Island - 0.9%
Rhode Island State Health & Educ. Bldg.
Corp. (Brown Univ.), 6.625%,
09/01/07, Callable 09/01/99 @ 102 Aa1/AA 1,205,000 1,275,794
-----------
South Carolina - 3.0%
South Carolina, Gen. Oblig., Ser. B.,
5.75%, 08/01/99 Aaa/AAA 4,000,000 4,130,000
-----------
Texas - 4.7%
Dallas County, TX, 6.30%, 08/15/02,
Callable 02/15/01 @ 100 Aaa/AAA 1,000,000 1,060,000
Houston, TX Housing Fin. Corp. Single
Family Mtge. Ref. Rev., Ser. 1993A,
4.70%, 06/01/98 Aaa/AAA 1,190,000 1,192,999
Houston, TX Independent School Dist.,
6.375%, 08/15/01 Aaa/AAA 3,925,000 4,199,750
-----------
6,452,749
-----------
Utah - 2.6%
Intermountain Power Agency Power Supply
Rev. Ref., Ser. C, 5.00%, 07/01/04,
Callable 07/01/03 @102 Aa/A+ 1,390,000 1,396,950
Provo City, UT Energy Sys. Rev., 5.50%,
11/15/11 Aaa/AAA 2,175,000 2,196,750
-----------
3,593,700
-----------
Virginia - 0.7%
Fairfax County, VA Public Imp., Ser. A,
5.40%, 06/01/07, Callable 06/01/02
@ 102 Aaa/AAA 1,000,000 1,032,500
-----------
Washington - 5.4%
Seattle, WA Metropolitan Sewer Rev.,
Ser. T, 6.625%, 01/01/06, Prerefunded
01/01/00 @ 102 A1/AA- 1,240,000 1,326,800
Snohomish County, WA School Dist. 103
Gen. Oblig. Unltd., 6.25%, 12/01/07 Aaa/AAA 1,370,000 1,510,425
Washington State, Ser. B, 6.375%,
08/01/10, Prerefunded 08/01/00 @ 100 NR/AA 4,350,000 4,589,250
-----------
7,426,475
Wisconsin - 4.3%
Kenosha, WI Ban (Waterworks Rev.), 4.70%,
12/01/01, Callable 12/01/98 @100 A1/A+ 1,500,000 1,501,875
Milwaukee, WI Gen. Oblig. Unltd., Ser. G,
5.50%, 06/15/03 Aa1/AA+ 2,305,000 2,417,369
Wisconsin State Gen. Oblig. Unltd.,
5.80%, 05/01/01 Aa2/AA 2,000,000 2,090,000
-----------
6,009,244
-----------
TOTAL MUNICIPAL BONDS (COST $137,075,502) 137,313,979
-----------
Tax-Exempt Mutual Funds - 0.8%
Federated Tax Free Oblig. Fund Institutional
Shares (COST $1,099,528) NR/NR 1,099,528 1,099,528
-----------
TOTAL INVESTMENTS (COST $138,175,030)+ - 100.0% 138,413,507
OTHER ASSETS AND LIABILITIES, NET - 0.0% (12,657)
-----------
NET ASSETS - 100.0% $138,400,850
===========
* Unaudited.
+ Cost for Federal income tax purposes was $137,211,382. At June 30, 1997,
net unrealized appreciation was $1,202,125. This consisted of aggregate gross
realized appreciation for all securities in which there was an excess of
market value over tax cost of $1,239,409 and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
market value of $37,284.
NR Not Rated. While not rated by Moody's or S&P, the Fund adviser considers
the security to be of the appropriate quality for the Trust.
Kiewit Investment Trust/Equity Series
- -------------------------------------
Investments/June 30 197
(Showing Percentage of Total Value of Net Assets)
- ----------------------------------------------------------------------------
Value
Shares (Note 2)
------ ------
Common Stock - 91.1%
Communications & Broadcasting - 2.6%
Airtouch Communications, Inc.* 20,000 $ 547,500
Comcast UK Cable Partners, Ltd.* 65,000 780,000
Heritage Media Corp.* 50,000 943,750
-----------
2,271,250
-----------
Finance & Real Estate - 3.0%
Crestar Financial Corp. 30,000 1,166,250
Federal National Mtge. Assoc. 15,000 654,375
Wells Fargo & Co. 3,000 808,500
-----------
2,629,125
-----------
Manufacturing - 61.3%
Chemicals & Allied Products - 5.2%
Great Lakes Chemical Corp. 20,000 1,047,500
Monsanto Co. 55,000 2,368,438
Morton International, Inc. 39,100 1,180,331
-----------
4,596,269
-----------
Computer & Office Equipment - 2.7%
3Com Corp. 23,000 1,035,000
Cisco Systems, Inc.* 14,000 939,750
Hewlett-Packard Co. 7,500 420,000
-----------
2,394,750
-----------
Consumer Products - 10.6%
Avon Products, Inc. 37,000 2,610,813
Newell Co. 50,000 1,981,250
Procter & Gamble Co. 18,000 2,542,500
Whirlpool Corp. 40,000 2,182,500
-----------
9,317,063
-----------
Food & Beverage - 3.0%
Northland Cranberries (A Shares) 95,000 1,531,875
PepsiCo, Inc. 30,000 1,126,875
-----------
2,658,750
-----------
Games & Toys - 1.0%
Hasbro, Inc. 32,500 922,187
-----------
Iron & Steel - 2.5%
LTV Corp. 155,000 2,208,750
-----------
Misc. Electrical Machinery, Equip. & Supplies - 6.1%
Black & Decker Corp. 42,000 1,561,875
National Semiconductor Corp.* 40,000 1,225,000
Seagate Technology 15,000 527,812
Thomas & Betts Corp. 40,000 2,102,500
-----------
5,417,187
-----------
Misc. Industrial Machinery & Equip. - 0.6%
Deere & Co. 10,000 548,750
-----------
Miscellaneous Manufacturing Industries - 6.6%
Calgon Carbon Corp. 128,000 1,776,000
Flow International Corp.* 105,000 1,023,750
Litton Industries, Inc.* 26,500 1,280,281
Principal Value
Amount (Note 2)
--------- ------
Phelps Dodge Corp. 6,000 511,125
Tracor, Inc.* 50,000 1,256,250
-----------
5,847,406
-----------
Oil Field Machinery & Equipment - 2.6%
Schlumberger, Ltd. 18,500 2,312,500
-----------
Paper & Paper Products - 0.6%
Weyerhaeuser Co. 10,000 520,000
-----------
Petroleum Refining - 2.4%
Mobil Corp. 31,000 2,166,125
-----------
Pharmaceutical Preparations - 2.7%
Pfizer, Inc. 20,000 2,390,000
-----------
Photographic Equipment & Supplies - 0.8%
Eastman Kodak Co. 9,000 690,750
-----------
Precision Instruments & Medical Supplies - 5.0%
Medtronic, Inc. 30,000 2,430,000
Millipore Corp. 46,500 2,046,000
-----------
4,476,000
-----------
Special Industrial Machinery - 0.7%
Cincinnati Milacron, Inc. 25,000 648,437
-----------
Telecommunications Equipment - 1.4%
Kemet Corp.* 50,000 1,243,750
-----------
Textiles & Apparel - 1.6%
Warnaco Group, Inc. 45,000 1,434,375
-----------
Transportation Equipment - 4.7%
Autoliv, Inc. 13,333 521,654
Chrysler Corp. 32,000 1,050,000
OEA, Inc. 29,500 1,165,250
Superior Industries Intl., Inc. 55,000 1,457,500
-----------
4,194,404
-----------
Transportation Services - 0.5%
Burlington Northern Santa Fe 5,000 449,375
-----------
TOTAL MANUFACTURING 54,436,828
-----------
Mining - 0.6%
Louisiana Land & Exploration** 10,000 571,250
-----------
Services - 13.2%
Amusement & Recreation Services - 1.6%
Walt Disney Co. 17,641 1,415,690
-----------
Business Services - 4.2%
First Data Corp. 28,400 1,247,825
Omnicom Group, Inc. 40,000 2,465,000
-----------
3,712,825
-----------
Value
Shares (Note 2)
------ ------
Computer Services - 2.9%
Cerner Corp.* 65,000 1,365,000
Computer Associates International, Inc. 15,000 835,313
Electronic Data Systems Corp. 10,000 410,000
-----------
2,610,313
-----------
Medical & Health Services - 4.5%
Tenet Healthcare Corp.* 55,000 1,625,938
United Healthcare Corp. 45,000 2,340,000
-----------
3,965,938
-----------
TOTAL SERVICES 11,704,766
-----------
Utilities - 0.7%
Northwestern Public Service Co. 30,400 653,600
-----------
Wholesale & Retail Trade - 9.7%
Miscellaneous Retail Stores - 2.9%
Dayton Hudson Corp. 42,000 2,233,875
Petsmart, Inc. 30,000 345,000
-----------
2,578,875
-----------
Retail Building Materials - 2.8%
Home Depot, Inc. 30,000 2,068,125
Ply-Gem Industries, Inc. 24,000 435,000
-----------
2,503,125
-----------
Retail Eating & Drinking Places - 1.9%
Cracker Barrel Old Country Store, Inc. 65,000 1,722,500
-----------
Retail Food Stores - 2.1%
Albertson's, Inc. 50,000 1,825,000
-----------
TOTAL WHOLESALE & RETAIL TRADE 8,629,500
-----------
TOTAL COMMON STOCK
(COST $71,484,901) 80,896,319
-----------
Principal Value
Amount (Note 2)
--------- ------
COMMERCIAL PAPER - 2.5%
California & Hawaiian Sugar Co., Inc.,
5.73%, 07/09/97 $ 1,000,000 $ 998,727
Union Pacific Corporation, 5.77%,
07/09/97 1,200,000 1,199,807
-----------
TOTAL COMMERCIAL PAPER
(COST $2,198,534) 2,198,534
-----------
REPURCHASE AGREEMENTS - 6.7%
With Paine Webber Group, Inc.:
At 6.20%, dated 06/30/97, to be
repurchased at $5,957,026 on 07/01/97,
collateralized by Federal National
Mortgage Association securities with
various coupons and maturities to 04/01/26
(market value $6,076,917)
(COST $5,956,000) 5,956,000
-----------
TOTAL INVESTMENTS
(COST $79,639,435)+ - 100.3% 89,050,853
OTHER ASSETS AND LIABILITIES,
NET - (0.3)% (261,837)
-----------
NET ASSETS - 100.0% $88,789,016
===========
COVERED CALL OPTIONS WRITTEN
AT JUNE 30, 1997
Shares
Subject
to call
-------
Louisiana Land & Exploration , Call
Options, July 1997 @$50.00 5,000 $ (35,625)
Louisiana Land & Exploration ,Call
Options , July1997 @ $55.00 5,000 (15,000)
-----------
TOTAL CALL OPTIONS
(PREMIUMS RECEIVED $19,624) $ (50,625)
===========
* Non-income producing security.
** Shares subject to call from written options being exercised.
+ Cost for Federal income tax purposes was $65,984,709. At June 30, 1997,
net unrealized appreciation was $23,066,144. This consisted of aggregate
gross unrealized appreciation for all securities in which there was an excess
of market value over tax cost of $23,720,483 and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
market value of $654,339.
Kiewit Investment Trust
- -----------------------
Financial Statements
- ----------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1997
Short-Term
Money Market Government Intermediate-Term Tax-Exempt Equity
Series Series Bond Series Series Series
- --------------------------------------------------------------------------
Assets:
Investments in securities, at value* (Note 2)
$ 416,750,974 $ 126,792,854 $ 107,114,822 $ 138,413,507 $ 89,050,853
Cash
591 945 470 124 48
Receivable for investment securities sold
0 2,046,863 0 0 0
Receivable for beneficial interests sold
0 204,522 111,597 0 0
Dividends and interest receivable
580,141 2,114,761 1,738,715 2,198,567 71,361
Other assets
1,290 465 381 494 289
- ---------------------------------------------------------------------------
Total assets
417,332,996 131,160,410 108,965,985 140,612,692 89,122,551
- ---------------------------------------------------------------------------
Liabilities:
Covered call options written, at value (premiums received $19,624) (Note 2)
0 0 0 0 50,625
Payable for beneficial interests repurchased
0 0 0 0 6,229
Payable for investment securities purchased
0 988,196 0 2,104,123 165,875
Accrued management fee (Note 4)
66,677 28,798 51,043 69,058 79,385
Other accrued expenses (Note 4)
53,679 37,409 36,308 38,661 31,421
- ---------------------------------------------------------------------------
Total liabilities
120,356 1,054,403 87,351 2,211,842 333,535
- ---------------------------------------------------------------------------
Net Assets
$ 417,212,640 $ 130,106,007 $ 108,878,634 $ 138,400,850 $ 88,789,016
- ---------------------------------------------------------------------------
* Investments at cost
$ 416,750,974 $ 126,557,526 $ 106,964,417 $ 138,175,030 $ 79,639,435
- ---------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Period March 1, 1997(Commencement of Operations)through June 30,1997
Short-Term
Money Market Government Intermediate-Term Tax-Exempt Equity
Series Series Bond Series Series Series
- --------------------------------------------------------------------------
Income:
Dividends
$ 0 $ 0 $ 0 $ 0 $ 309,872
Interest
7,864,794 2,557,030 2,443,265 2,154,434 115,255
- ---------------------------------------------------------------------------
Total income
7,864,794 2,557,030 2,443,265 2,154,434 425,127
- ---------------------------------------------------------------------------
Expenses:
Management fee (reflects waiver*) (Note 4)
130,705 55,519 103,077 143,204 151,977
Administration fee (Note 4)
34,863 22,153 21,310 22,685 20,244
Accounting fee (Note 4)
32,123 18,992 18,121 19,541 17,019
Custodian fee (Note 4)
16,704 7,590 6,183 5,374 4,521
Trustees' fees and expenses (Note 4)
1,000 1,000 1,000 1,000 1,000
Legal
2,000 1,000 1,000 1,000 500
Audit
10,000 10,000 10,000 10,000 10,000
Other
2,364 1,745 2,679 4,398 734
- ---------------------------------------------------------------------------
Total expenses, net
229,759 117,999 163,370 207,202 205,995
- ---------------------------------------------------------------------------
Net investment income
7,635,035 2,439,031 2,279,895 1,947,232 219,132
- ---------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investment transactions
0 (106,763) (58,777) (187,909) 263,311
Net realized gain on call options written
0 0 0 0 308,968
Net change in unrealized appreciation investments
0 235,328 150,405 238,477 9,380,417
- ---------------------------------------------------------------------------
Net gain on investments
0 128,565 91,628 50,568 9,952,696
- ---------------------------------------------------------------------------
Net increase in net assets resulting from operations
$ 7,635,035 $ 2,567,596 $ 2,371,523 $ 1,997,800 $ 10,171,828
===========================================================================
* Management fee waiver
$ (151,510) $ (71,404) $ (39,931) $ (42,563) $ (40,236)
STATEMENTS OF CHANGES IN NET ASSETS
For the Period March 1,1997(Commencement of Operations)through June 30, 1997
Short-Term
Money Market Government Intermediate-Term Tax-Exempt Equity
Series Series Bond Series Series Series
- --------------------------------------------------------------------------
Increase (Decrease) in Net Assets:
Operations:
Net investment income
$ 7,635,035 $ 2,439,031 $ 2,279,895 $ 1,947,232 $ 219,132
Net realized gain (loss) on investment transactions
0 (106,763) (58,777) (187,909) 263,311
Net realized gain on call options written
0 0 0 0 308,968
Net change in unrealized appreciation of investments
0 235,328 150,405 238,477 9,380,417
- --------------------------------------------------------------------------
Net increase in net assets resulting from operations
7,635,035 2,567,596 2,371,523 1,997,800 10,171,828
- --------------------------------------------------------------------------
Transactions in beneficial interests:
Contributions
684,043,333 133,963,166 107,263,591 138,877,680 81,691,510
Withdrawals
(274,465,728) (6,424,755) (756,480) (2,474,630) (3,074,322)
- --------------------------------------------------------------------------
Net increase in net assets from transactions in interests
409,577,605 127,538,411 106,507,111 136,403,050 78,617,188
- --------------------------------------------------------------------------
Total increase in net assets
417,212,640 130,106,007 108,878,634 138,400,850 88,789,016
- --------------------------------------------------------------------------
Net Assets:
Beginning of period
0 0 0 0 0
- --------------------------------------------------------------------------
End of period
$417,212,640 $ 130,106,007 $ 108,878,634 $ 138,400,850 $ 88,789,016
==========================================================================
Kiewit Investment Trust
- -----------------------
Notes to the Financial Statements
- --------------------------------------------------------------------------
1. Description of the Trust. The Kiewit Investment Trust (the "Trust") is
registered under the Investment Company Act of 1940 (the "1940 Act"), as an
open-end management investment company organized as a Delaware business trust
on January 23, 1997. The Declaration of Trust permits the Trustees to
establish additional series, each of which is a separate class of shares. The
Trust comprises six series of shares: Kiewit Money Market Series, Kiewit
Government Money Market Series, Kiewit Short-Term Government Series, Kiewit
Intermediate-Term Bond Series, Kiewit Tax-Exempt Series, and Kiewit Equity
Series (individually and collectively referred to as "Series"). As of June
30, 1997, the Kiewit Government Money Market Series has not yet commenced
operations. The investment objectives of the six Series are as follows: Money
Market Series is high current income, while maintaining a stable share price
by investing in short-term money market securities; Government Money Market
Series is high current income, while maintaining a stable share price by
investing in securities issued or guaranteed by the U.S Government, its
agencies or instrumentalities; Short-Term Government Series is a high level of
current income, consistent with the maintenance of principal and liquidity;
Intermediate-Term Bond Series is a high level of current income, consistent
with reasonable risk; Tax-Exempt Series is a high level of current income,
exempt from Federal income tax, consistent with reasonable risk; Equity Series
is long-term capital appreciation.
The Trust commenced operations on March 1, 1997. Each Series of the
Trust received a contribution of investment securities from a corresponding
Portfolio of Kiewit Mutual Fund (the "Fund") in exchange for an ownership
interest in the Series of equal value.
2. Significant Accounting Policies. The following is a summary of the
significant accounting policies of the Trust:
Security Valuation. Securities held by the Series 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. The Money Market Series values securities utilizing the amortized
cost valuation method which is permitted under Rule 2a-7 under the 1940 Act.
This method involves valuing a portfolio security initially at its cost and
thereafter adjusting for amortization of premium or accretion of discount to
maturity. Each money market instrument with a remaining maturity of 60 days
or less is valued at amortized cost, which approximates market value, unless
the Trust'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 Series is treated as a partnership entity for
Federal income tax purposes. Any interest, dividends and gains or losses of a
Series will be deemed to have been "passed through" to each partner. It is
intended that each Series' assets will be managed in such a way that the
investor in the Series will satisfy requirements of Subchapter M of the
Internal Revenue Code.
Investment Income. All of the net investment income (loss) and realized and
unrealized gains and losses from the security transactions are allocated pro
rata among the investors in the Series on a daily basis.
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 Series, through the Trust'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.
("KIMC"), the Trust 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 Trust has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. Provisions of each agreement
ensure that the market value of the collateral is sufficient in the event of
default; however, in the event of default or bankruptcy by the other party to
the agreement, realization and/or retention of the collateral may be subject
to legal proceedings.
Call and Put Options. The Short-Term Government Series, Intermediate-Term
Bond Series and the Equity Series each may write and/or purchase exchange-
traded call options and purchase exchange-traded put options on securities in
the Series. When a Series 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 Series has written either expires on its
stipulated expiration date, or if a Series enters into a closing purchase
transaction, the Series 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
Series has written is exercised, the Series realizes a gain or loss from the
sale of the underlying security, and the proceeds from which are increased by
the premium originally received.
Other. Investment security transactions are accounted for on a trade date
basis. Each Series 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. For both the Portfolio and the Series combined,
during the fiscal year ended June 30, 1997, purchases and sales of investment
securities (excluding short-term investments) aggregated as follows:
Short-Term Intermediate-
Government Term Bond Tax-Exempt Equity
----------------------------------------------------
Purchases $ 64,130,713 $ 54,449,874 $ 85,732,167 $20,634,359
Sales 141,148,459 87,338,185 92,720,830 18,418,539
Resulting in a combined
portfolio turnover rate
as follows 44.24% 51.57% 62.70% 26.33%
Written options transactions for both the Equity Portfolio and Series during
the fiscal year ended June 30, 1997 are summarized as follows:
Call Options Written
Premiums Received
----------------------
Options outstanding, beginning of period $ (248,642)
Options written (888,000)
Options closed 442,790
Options exercised 242,292
Options expired 431,936
----------------
Options outstanding at June 30, 1997 (19,624)
Unrealized depreciation at June 30, 1997 (31,001)
----------------
Market value of written options at
June 30, 1997 $ (50,625)
================
During the fiscal year ended June 30, 1997, the Short-Term Government Series
and the Intermediate-Term Bond Series had not entered into any option
contracts.
The combined average commission rate paid by both the Equity Portfolio and
Series, for the fiscal year ending June 30, 1997, was $0.0563.
4. Management Fee and Other Transactions with Affiliates. The Trust, on
behalf of each Series, employs KIMC, an indirect, wholly-owned subsidiary of
Peter Kiewit Sons', Inc., a construction, mining, energy and
telecommunications company, to furnish investment advisory and other services
to the Trust. Pursuant to an investment management agreement with the Trust
with respect to each Series, KIMC manages the investment and reinvestment of
their assets, provides the Trust with records concerning KIMC's activities
which the Trust is required to maintain, and renders regular reports to the
Trust officers and the Board of Trustees.
For its services under the investment management agreement for each Series,
KIMC receives fees from the Series at the following annual rates of their
average monthly net assets: Money Market Series - 0.20%; Short-Term
Government Series - 0.30%; Intermediate-Term Bond Series - 0.40%; Tax-Exempt
Series - 0.40%; and Equity Series - 0.70%.
KIMC 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 Series: Money Market Series - 0.20%; Short-Term Government Series -
0.30%; Intermediate-Term Bond Series - 0.50%; Tax-Exempt Series - 0.50%; and
Equity Series - 0.80%. These undertakings may be amended or rescinded at any
time in the future.
The following table summarizes the management fees for the period March 1,
1997 (commencement of operations) through June 30, 1997:
Gross Management Management
Fee Fees Waived
---------------- -----------
Money Market Series $ 282,215 $ 151,510
Short-Term Government Series 126,923 71,404
Intermediate-Term Bond Series 143,008 39,931
Tax-Exempt Series 185,767 42,563
Equity Series 192,213 40,236
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 Trust pursuant to an Administration Agreement with the Trust on behalf of
each Series. 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 Trust at an annual rate of $50,000 per Series, plus an amount equal
to 0.015% of that portion of the Series' total average daily net assets in
excess of $125 million, plus out-of-pocket expenses.
WTC serves as Custodian of the assets of the Trust.
Rodney Square determines the net asset value of each Series and provides
accounting services to the Trust pursuant to an Accounting Services Agreement
with the Trust on behalf of each Series. For its services, Rodney Square
receives an annual fee of $40,000 per Series, plus an amount equal to 0.015%
of that portion of the Series' total average daily net assets in excess of
$100 million.
Independent Trustees are each paid an annual fee of $5,000 from the Trust,
plus $250 per Series per meeting attended, plus travel expenses in connection
with meetings. Certain officers and trustees of the Trust are also officers
and/or directors of KIMC.
Kiewit Investment Trust
- -----------------------
Report of Independent Accountants
- ----------------------------------------------------------------------------
To the Trustees and Beneficial Interest Holders of Kiewit Investment Trust:
In our opinion, the accompanying statement of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets present fairly, in all material
respects, the financial position of Kiewit Money Market Series, Kiewit Short-
Term Government Series, Kiewit Intermediate-Term Bond Series, Kiewit Tax-
Exempt Series and Kiewit Equity Series (five of the series constituting Kiewit
Investment Trust, hereafter referred to as the "Trust") at June 30, 1997, and
the results of each of their operations and the changes in each of their net
assets for the period March 1, 1997 (commencement of operations) through June
30, 1997, in conformity with generally accepted accounting principles. These
financial statements are the responsibility of the Trust'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 audit 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, 1997 by correspondence with the
custodian and brokers and, where appropriate, the application of alternative
auditing procedures for unsettled security transactions, provide a reasonable
basis for the opinion expressed above.
/s/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
Philadelphia, Pennsylvania
August 7, 1997
