N-30D 1 dn30d.txt ANNUAL REPORT [LOGO] BEAR STEARNS . . . . . . . . . Bear Stearns Money Market Funds Annual Report Dated October 31, 2002 TempFund FedFund MuniFund California Money Fund New York Money Fund The Securities and Exchange Commission has not approved or disapproved the Funds' shares or determined if this prospectus is accurate or complete. It is a criminal offense to state otherwise. [LOGO] BLACKROCK 100 Bellevue Parkway PROVIDENT INSTITUTIONAL FUNDS 4th Floor Wilmington, DE 19809 (302) 797-2000 www.brpif.com December 12, 2002 Dear Shareholder: We are pleased to present the Annual Report to Shareholders of Bear Stearns Shares of BlackRock Provident Institutional Funds for the year ended October 31, 2002. Included is the Investment Adviser's Report with commentary on the United States economy and its impact on the performance and asset levels in our Funds. BlackRock Provident Institutional Funds offers a variety of high quality Taxable and Tax-Exempt Money Market Funds designed to meet the varied needs of our investors. Please contact your account representative or call our Client Service Center at (800) 821-7432 to discuss your investment options. We welcome the opportunity to serve you. Sincerely, /s/ Ralph Schlosstein Ralph Schlosstein Chairman & President BLACKROCK PROVIDENT INSTITUTIONAL FUNDS Annual Report of the Investment Adviser In the twelve months ended October 31, 2002, the U.S. economy struggled to recover from last year's recession and the aftermath of the terrorist attacks on September 11. For a time, the results were encouraging, as gross domestic product grew by 2.7% in the fourth quarter of 2001 and by 5% in this year's first quarter. The source of the strength, however, came solely from consumer spending; business spending and capital investments failed to participate. By mid-summer, it was apparent that the economy was again faltering and the Federal Reserve, which had ended its policy of monetary accommodation in December 2001, might have to lower interest rates again to prevent a double dip. Market sentiment grew more pessimistic too, as the equity markets continued their three-year decline and a widening of corporate governance issues struck at investor confidence and the credibility of the financial markets. By the end of the third quarter, the underlying strength of the economy was, in fact, much weaker than the 3.1% GDP report suggested. The index of leading indicators, for example, was in the midst of a three-month decline and consumer confidence plunged in October to a reading of 79 versus 93 in September. At the September FOMC meeting, two members dissented from the majority decision to hold rates steady, and urged instead that rates be lowered. At the next meeting on November 6, the vote was unanimous to cut the federal funds rate by fifty basis points to 1.25%, a 41-year low. The investment strategy of the Trust's ten money market portfolios centered on keeping the average weighted maturities extended for most of the period. Early in the year, incremental yield was added by extending out a positively-sloped yield curve. From July on, the same strategy served to protect against a sharp flattening of the money market yield curve and to position the portfolios for the possibility that the Fed might have to lower interest rates again. In the third quarter, the yield curve shifted from a positive slope of fifty basis points to a negative slope of ten basis points. Nine to twelve-month investments made early in the quarter at yields above 2.00-2.25% should benefit the portfolios in the current rate environment. TempFund, rated AAA by both Moody's and Standard & Poor's, kept its average maturity target in the mid 50-day range. The government and municipal portfolios also maintained longer maturities of 50-60 days. Total assets of the Trust ended the October fiscal year at $43.2 billion, down $3.7 billion from a year earlier, as the yield spread advantage gradually diminished over the ten months of unchanged monetary policy. The November 6 rate cut, however, renewed asset inflows and Trust assets surged to $57.3 billion on November 18. The focus on portfolio credit quality also remained a key objective during the year. Our research staff paid close scrutiny to all portfolio holdings and acted quickly and prudently to restrict or suspend issuers whose creditworthiness or ratings came into question. The portfolios' longer maturing investments were often made with government obligations to reduce the exposure to corporate credit risk. On October 31, the one-day yields on TempFund was 1.68%. Interestingly, because of an abundance of supply in the short-term municipal market, particularly a large offering of California Revenue Anticipation Notes, yields on municipal money market funds matched those of their taxable counterparts. MuniFund, for example, had a one-day yield of 1.65% on October 31, 2002. When compared to their respective Lipper peer groups, all of the Trust's portfolios ranked in the top quartile for the one, three and twelve months ended October 31, 2002. We value your relationship with the BlackRock Provident Institutional Funds and look forward to meeting all your future institutional liquidity needs. BlackRock Institutional Management Corporation BlackRock Provident Institutional Funds TempFund Portfolio Statement of Net Assets October 31, 2002 --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- ---------------- AGENCY OBLIGATIONS--16.7% Federal Farm Credit Bank Bonds--0.1% 4.25% 07/01/03 $ 25,608 $ 25,917,050 ---------------- Federal Home Loan Bank Bonds--6.0% 6.25% 11/15/02 50,000 50,081,798 2.25% 12/27/02 160,000 160,000,000 5.13% 01/13/03 359,825 361,813,773 2.60% 04/08/03 150,000 150,000,000 2.80% 04/11/03 150,000 150,000,000 2.65% 06/16/03 246,000 245,966,976 4.50% 07/07/03 82,000 83,154,813 5.58% 09/02/03 58,770 60,548,329 2.01% 10/10/03 210,000 210,000,000 ---------------- 1,471,565,689 ---------------- Federal Home Loan Bank Discount Notes--0.2% 2.28% 02/28/03 40,000 39,982,981 ---------------- Federal Home Loan Mortgage Corporation Bonds--0.5% 4.75% 03/15/03 24,000 24,192,269 7.38% 05/15/03 46,335 47,585,459 3.50% 09/15/03 50,000 50,701,064 ---------------- 122,478,792 ---------------- Federal Home Loan Mortgage Corporation Discount Notes--1.5% 2.15% 11/07/02 30,000 29,989,250 1.60% 12/24/02 231,061 230,516,723 1.92% 07/17/03 120,500 118,841,920 ---------------- 379,347,893 ---------------- Federal National Mortgage Association Bonds--1.2% 2.25% 01/28/03 58,500 58,498,855 5.00% 02/14/03 10,000 10,078,080 4.63% 05/15/03 100,000 101,600,625 4.00% 08/15/03 114,581 116,523,946 ---------------- 286,701,506 ---------------- Federal National Mortgage Association Discount Notes--7.2% 1.61% 11/06/02 622,500 622,360,802 2.40% 11/15/02 45,000 44,958,000 1.65% 12/24/02 500,000 498,785,417 1.65% 12/31/02 300,000 299,175,000 1.66% 12/31/02 300,000 299,172,500 ---------------- 1,764,451,719 ---------------- TOTAL AGENCY OBLIGATIONS (Cost $4,090,445,630) 4,090,445,630 ----------------
Par Maturity (000) Value -------- -------- ---------------- CERTIFICATES OF DEPOSIT--10.4% Domestic Certificates of Deposit Bank of New York (A-1+, P-1) 1.73% 01/27/03 $100,000 $ 100,002,396 2.34% 02/21/03 18,000 18,000,000 2.34% 02/24/03 162,000 162,000,000 2.12% 08/12/03 25,000 25,021,055 2.14% 08/12/03 55,000 55,050,610 2.07% 08/20/03 59,000 59,021,069 Bank One Illinois N.A. (A-1, P-1) 1.67% 02/18/03 475,000 475,000,000 Citibank N.A. (A-1+, P-1) 1.71% 01/31/03 318,000 318,000,000 First Tennessee National Association Bank (A-1, P-1) 1.77% 11/22/02 130,000 129,999,230 Harris Trust & Savings Bank (A-1+, P-1) 1.75% 11/12/02 150,000 150,000,000 1.76% 11/19/02 150,000 150,000,000 J.P. Morgan Chase Bank N.A. (A-1+, P-1) 1.78% 12/06/02 300,000 300,000,000 Marshall & Ilsley Bank (A-1, P-1) 1.70% 11/21/02 70,000 70,000,000 1.70% 11/22/02 100,000 100,000,000 National City Bank Indiana (A-1, P-1) 2.29% 11/19/02 150,000 150,000,000 2.40% 11/25/02 150,000 150,000,000 State Street Bank & Trust Co. (A-1+, P-1) 2.12% 07/10/03 80,000 80,000,000 U.S. Bank, N.A. (A-1, P-1) 2.02% 08/22/03 50,000 50,000,000 ---------------- TOTAL CERTIFICATES OF DEPOSIT (Cost $2,542,094,360) 2,542,094,360 ---------------- COMMERCIAL PAPER--34.2% Asset Backed Securities--22.5% Amstel Funding Corp. (A-1+, P-1) 1.80% 12/04/02 246,684 246,276,971 1.80% 12/11/02 103,971 103,763,058 1.80% 12/13/02 150,000 149,685,000 1.80% 12/20/02 90,000 89,779,500 1.75% 01/07/03 350,000 348,860,069 1.85% 01/07/03 69,081 68,843,150 1.85% 01/14/03 47,527 47,346,265 Atlantis One Funding Corp. (A-1+, P-1) 1.70% 11/14/02 57,258 57,222,850 Corporate Asset Funding Co. (A-1+, P-1) 1.73% 11/19/02 130,000 129,887,550
See accompanying notes to financial statements. 3 TempFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- ---------------- COMMERCIAL PAPER (continued) Asset Backed Securities (continued) Corporate Receivable Corp. (A-1+, P-1) 1.73% 11/18/02 $113,000 $ 112,907,685 1.74% 11/18/02 100,000 99,917,833 CXC LLC (A-1+, P-1) 1.68% 11/06/02 141,600 141,566,960 1.74% 11/18/02 50,000 49,958,917 1.74% 12/05/02 100,000 99,835,667 1.72% 12/18/02 100,000 99,775,445 1.70% 12/19/02 190,000 189,569,333 1.79% 01/16/03 150,000 149,433,167 Edison Asset Securitization LLC (A-1+, P-1) 1.72% 12/10/02 143,006 142,739,532 1.72% 12/12/02 200,000 199,608,222 1.79% 12/23/02 150,000 149,612,167 1.71% 01/13/03 97,500 97,161,919 1.72% 01/16/03 250,000 249,092,222 1.78% 01/21/03 77,361 77,051,169 Enterprise Funding Corp. (A-1+, P-1) 1.77% 11/15/02 100,000 99,931,167 Fairway Finance Corp. (A-1, P-1) 1.76% 11/08/02 50,000 50,000,000 1.76% 11/13/02 80,000 80,000,000 1.76% 12/02/02 100,000 99,848,444 1.79% 01/27/03 25,120 25,011,335 Fcar Owner Trust (A-1+, P-1) 1.75% 11/15/02 100,000 99,931,945 1.75% 11/18/02 100,000 99,917,361 1.75% 11/19/02 100,000 99,912,500 1.77% 11/19/02 100,000 99,911,500 1.77% 12/03/02 100,000 99,842,667 1.78% 12/03/02 142,000 141,775,325 1.78% 12/05/02 60,000 59,899,133 1.77% 12/11/02 100,000 99,803,333 1.80% 01/22/03 100,000 99,590,000 Moat Funding LLC (A-1+, P-1) 1.71% 11/19/02 100,000 99,914,500 1.79% 11/21/02 47,500 47,452,764 1.76% 11/25/02 40,000 39,953,067 Ness LLC (A-1, P-1) 1.74% 01/06/03 56,732 56,551,025 Park Avenue Receivables (A-1, P-1) 1.80% 12/02/02 104,123 103,961,609 Pennine Funding LLC (A-1+, P-1) 1.71% 01/09/03 68,000 67,777,130 Receivables Capital Corp. (A-1+, P-1) 1.67% 11/12/02 86,071 86,027,080 1.77% 11/12/02 76,845 76,803,440 1.70% 01/03/03 52,281 52,125,464
Par Maturity (000) Value -------- -------- ---------------- COMMERCIAL PAPER (continued) Asset Backed Securities (continued) Sheffield Receivables Corp. (A-1+, P-1) 1.76% 11/04/02 $273,610 $ 273,569,871 Trident Capital Finance (A-1+, P-1) 1.78% 11/07/02 240,000 239,928,800 ---------------- 5,499,334,111 ---------------- Banks--7.0% Barclays U.S. Funding Corp. (A-1+, P-1) 1.69% 01/08/03 90,000 89,712,700 Deutsche Bank Financial LLC (A-1+, P-1) 2.08% 07/10/03 294,000 289,746,596 Forrestal Funding Master Trust (A-1+, P-1) 1.78% 11/21/02 217,775 217,559,645 Intrepid Funding Master Trust (A-1+, P-1) 1.78% 11/22/02 104,742 104,633,243 J.P. Morgan Chase & Co. (A-1, P-1) 1.70% 01/08/03 350,000 348,876,111 Marshall & Ilsley Corp. (A-1, P-1) 1.77% 11/19/02 50,000 49,955,750 Variable Funding Capital (A-1, P-1) 1.76% 11/05/02 180,000 179,964,800 1.70% 01/06/03 90,000 89,719,500 1.70% 01/07/03 50,000 49,841,805 1.71% 01/08/03 300,000 299,031,000 ---------------- 1,719,041,150 ---------------- Electronic & Other Electrical Equipment--1.7% General Electric Co. (A-1+, P-1) 1.71% 12/30/02 408,000 406,856,580 ---------------- Finance Services--1.6% UBS Finance Delaware, Inc. (A-1+, P-1) 1.89% 11/01/02 400,000 400,000,000 ---------------- Insurance Carriers--0.4% Triple A One Funding Corp. (A-1, P-1) 1.81% 11/04/02 100,026 100,010,913 ---------------- Sugar & Confectionary Products--1.0% Nestle Capital Corp. (A-1+, P-1) 1.76% 02/10/03 45,000 44,777,800 1.73% 02/11/03 187,000 186,083,388 ---------------- 230,861,188 ---------------- TOTAL COMMERCIAL PAPER (Cost $8,356,103,942) 8,356,103,942 ----------------
See accompanying notes to financial statements. 4 TempFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- ---------------- U.S. TREASURY BILLS--1.6% 1.55% 01/02/03 $300,000 $ 299,201,750 1.55% 01/09/03 100,000 99,703,875 ---------------- TOTAL U.S. TREASURY BILLS (Cost $398,905,625) 398,905,625 ---------------- VARIABLE RATE OBLIGATIONS--24.0% Banks--8.6% American Express Centurion Bank (A+, Aa3) 1.78%(b) 11/14/02 200,000 200,000,000 Citigroup, Inc. (AA-, Aa1) 1.90%(b) 12/02/02 181,800 181,909,411 First Union National Bank (A+, Aa3) 2.04%(b) 11/18/02 25,000 25,008,038 1.87%(b) 11/29/02 50,000 50,034,442 1.97%(b) 12/20/02 83,000 83,023,934 National City Bank (Indiana) (A+, Aa3) 1.79% 11/01/02 200,000 199,990,110 SMM Trust Series 2001G (A-1, P-1) 1.82%(b) 12/13/02 135,000 135,000,000 SMM Trust Series 2002G (A-1, P-1) 1.81%(b) 12/03/02 431,864 431,864,000 U.S. Bank N.A. (A-1, P-1) 1.71%(b) 01/02/03 250,000 249,933,085 Wachovia Bank N.A. (A-1, P-1) 1.80%(b) 11/01/02 200,000 200,000,000 Wells Fargo Bank N.A. (AA-, Aa1) 1.80%(b) 11/01/02 190,000 190,000,000 Wells Fargo Financial, Inc. (A+, Aa2) 1.85%(b) 11/01/02 150,000 150,001,356 ---------------- 2,096,764,376 ---------------- Federal Home Loan Bank--1.6% Federal Home Loan Bank Variable Rate Notes 1.63%(b) 12/28/02 400,000 399,789,933 ---------------- Finance Services--1.4% Credit Suisse First Boston USA, Inc. (AA-, Aa3) 1.81%(b) 11/18/02 90,000 90,000,000 1.80%(b) 12/26/02 200,000 200,000,000 Donaldson Lufkin & Jenrette, Inc. (AA-, Aa3) 2.34%(b) 01/21/03 42,100 42,256,924 ---------------- 332,256,924 ---------------- Life Insurance--0.4% John Hancock Global Funding II (AA+, Aa2) 1.75%(b) 11/07/02 99,000 99,000,000 ----------------
Par Maturity (000) Value -------- -------- ---------------- VARIABLE RATE OBLIGATIONS (continued) Pharmaceutical Preparations--0.8% Merck & Co., Inc. 1.79%(b) 11/26/02 $200,000 $ 200,003,077 ---------------- Security Brokers & Dealers--8.7% Merrill Lynch & Co., Inc. (A+, Aa3) 2.01%(b) 11/04/02 46,850 46,879,106 1.78%(b) 11/08/02 200,000 200,000,000 1.85%(b) 11/12/02 250,000 250,000,000 1.78%(b) 11/18/02 419,000 418,985,647 2.07%(b) 12/02/02 70,000 70,082,636 1.95%(b) 12/10/02 141,000 141,116,094 1.95%(b) 12/24/02 56,375 56,426,434 1.98%(b) 12/26/02 54,870 54,945,029 1.93%(b) 01/08/03 12,200 12,212,400 2.00%(b) 01/27/03 72,950 72,986,792 Morgan Stanley Dean Witter & Co. (A-1, P-1) 1.96% 11/01/02 265,000 265,000,000 Salomon Smith Barney Holdings, Inc. (AA-, Aa1) 1.79%(b) 01/28/03 535,000 535,000,000 ---------------- 2,123,634,138 ---------------- Short Term Business Credit Institutions--2.5% American Express Credit Corp. (A+, Aa3) 1.80%(b) 11/29/02 200,000 200,002,411 General Electric Capital Corp. (AAA, Aaa) 1.88%(b) 11/04/02 71,600 71,666,226 1.85%(b) 11/18/02 155,000 155,000,000 1.83%(b) 11/25/02 179,500 179,531,094 ---------------- 606,199,731 ---------------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $5,857,648,179) 5,857,648,179 ---------------- MUNICIPAL BONDS--2.1% California--2.0% California State RB Series 2002F DN (SP-1, MIG-1) 1.79% (b) 11/07/02 $486,675 486,675,000 ----------------
See accompanying notes to financial statements. 5 TempFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- ---------------- MUNICIPAL BONDS (continued) Illinois--0.1% Illinois State Health Facilities Authority RB (Evanston Hospital Project) TECP (A-1+, VMIG-1) 1.75% 01/16/03 $ 40,000 $ 40,000,000 ---------------- TOTAL MUNICIPAL BONDS (Cost $526,675,000) 526,675,000 ---------------- MEDIUM TERM NOTES--3.9% Security Brokers & Dealers--2.0% Goldman Sachs Group PN (A+, Aa3) 1.82% 12/19/02 500,000 500,000,000 ---------------- Short Term Business Credit Institutions--1.9% General Electric Capital Corp. (AAA, Aaa) 7.00% 02/03/03 134,500 136,053,615 2.38% 02/21/03 325,000 325,000,000 ---------------- 461,053,615 ---------------- TOTAL MEDIUM TERM NOTES (Cost $961,053,615) 961,053,615 ---------------- REPURCHASE AGREEMENTS--9.1% Goldman, Sachs & Co. 1.93% 11/01/02 50,000 50,000,000 (Agreement dated 10/31/02 to be repurchased at $50,002,681, collateralized by $65,482,964 Federal Home Loan Mortgage Corporation Bonds and Federal National Mortgage Association Bonds 5.50% to 7.00% due from 07/01/18 to 11/01/32. The market value is $51,500,000.) J.P. Morgan Securities, Inc. 1.79% 11/01/02 242,000 242,000,000 (Agreement dated 10/31/02 to be repurchased at $242,012,033, collateralized by $291,815,000 Resolution Funding Corporation Principal Strips and U.S. Treasury Notes and Securities 5.50% to 12.75% due from 05/31/03 to 07/15/20. The market value is $247,139,721.)
Par Maturity (000) Value -------- -------- ---------------- REPURCHASE AGREEMENTS (continued) Merrill Lynch Government Securities Inc. 1.87% 11/01/02 $125,000 $ 125,000,000 (Agreement dated 10/31/02 to be repurchased at $125,006,493, collateralized by $128,617,000 U.S. Treasury Bills and World Bank Discount Notes 0.00% due from 11/29/02 to 02/26/03. The market value is $128,340,187.) Morgan Stanley & Co. Incorporated 1.83% 11/01/02 107,300 107,300,000 (Agreement dated 10/31/02 to be repurchased at $107,305,454, collateralized by $275,032,434 Federal Home Loan Bank Bonds, Federal Home Loan Mortgage Corporation Bonds, Notes and Strips, Federal National Mortgage Association Bonds, Discount Notes and Strips and U.S. Treasury Strips 0.00% to 7.50% due from 07/25/03 to 09/01/32. The market value is $111,068,088.) Morgan Stanley & Co. Incorporated 1.91% 11/01/02 450,000 450,000,000 (Agreement dated 10/31/02 to be repurchased at $450,023,875, collateralized by $1,153,444,506 Federal Home Loan Bank Bonds, Federal Home Loan Mortgage Corporation Bonds, Notes and Strips, Federal National Mortgage Association Bonds, Discount Notes and Strips and U.S. Treasury Strips 0.00% to 7.50% due from 07/25/03 to 09/01/32. The market value is $465,802,793.)
See accompanying notes to financial statements. 6 TempFund Portfolio Statement of Net Assets (Concluded) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ---------------- REPURCHASE AGREEMENTS (continued) Morgan Stanley & Co. Incorporated 1.93% 11/01/02 $ 212,213 $ 212,213,000 (Agreement dated 10/31/02 to be repurchased at $212,224,377, collateralized by $543,946,487 Federal Home Loan Bank Bonds, Federal Home Loan Mortgage Corporation Bonds, Notes and Strips, Federal National Mortgage Association Bonds, Discount Notes and Strips and U.S. Treasury Strips 0.00% to 7.50% due from 07/25/03 to 09/01/32. The market value is $219,665,352.) UBS Warburg LLC. 1.90% 11/01/02 825,700 825,700,000 (Agreement dated 10/31/02 to be repurchased at $825,743,579, collateralized by $2,064,808,577 Federal Home Loan Mortgage Corporation Strips and Resolution Funding Corporation Principal Strips 0.00% to 9.38% due from 10/15/19 to 01/01/32. The market value is $850,473,074.) UBS Warburg LLC. 1.83% 11/01/02 200,000 200,000,000 (Agreement dated 10/31/02 to be repurchased at $200,010,167, collateralized by $375,395,000 Federal National Mortgage Association Bonds and Resolution Funding Corporation Principal Strips 7.13% to 8.63% due from 06/15/10 to 01/15/21. The market value is $206,004,193.) TOTAL REPURCHASE AGREEMENTS ---------------- (Cost $2,212,213,000) 2,212,213,000 ----------------
Value --------------- TOTAL INVESTMENTS IN SECURITIES (Cost $24,945,139,351(a)) 102.0% $24,945,139,351 LIABILITIES IN EXCESS OF OTHER ASSETS (2.0%) (497,653,449) ----- --------------- NET ASSETS (Equivalent to $1.00 per share based on 19,872,131,656 Institutional Shares, 4,309,439,225 Dollar Shares, 65,140,680 Cash Management Shares, 178,401,540 Cash Reserve Shares, 124,472 Administration Shares and 22,716,785 Bear Stearns Shares outstanding 100% $24,447,485,902 === =============== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ($24,447,485,902 / 24,447,954,358) $1.00 =====
-------- (a)Cost for federal income tax purposes. (b)Variable Rate Obligations--The interest rate shown is as of October 31, 2002 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount owned can be recovered upon demand. Maturity Information October 31, 2002 (Unaudited)
Maturity Par Percentage ------------- --------------- ---------- 1-30 Days $10,675,765,000 42.8% 31-60 Days 5,932,754,000 23.8 61-90 Days 4,694,177,000 18.8 91-120 Days 1,714,500,000 6.9 121-150 Days 24,000,000 0.1 Over 150 Days 1,916,794,000 7.6
Average Weighted Maturity--55 days See accompanying notes to financial statements. 7 BlackRock Provident Institutional Funds FedFund Portfolio Statement of Net Assets October 31, 2002 --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- AGENCY OBLIGATIONS--62.6% Federal Farm Credit Bank Discount Notes--0.9% 1.67% 01/02/03 $ 23,000 $ 22,998,416 --------------- Federal Farm Credit Bank Variable Rate Notes--10.4% 1.68%(b) 11/04/02 140,000 139,976,526 1.68%(b) 11/05/02 33,000 32,990,274 1.69%(b) 11/20/02 50,000 49,995,171 1.67%(b) 01/30/03 48,000 47,992,826 --------------- 270,954,797 --------------- Federal Home Loan Bank Bonds--8.7% 2.25% 12/27/02 25,000 25,000,000 5.13% 01/13/03 7,260 7,308,707 5.66% 01/13/03 6,000 6,038,677 2.52% 04/07/03 25,000 25,000,000 2.60% 04/08/03 25,000 25,000,000 2.80% 04/11/03 30,000 30,000,000 2.65% 06/16/03 35,000 34,995,301 1.88% 08/01/03 18,600 18,589,010 1.63% 08/12/03 8,000 7,985,530 5.58% 09/02/03 10,000 10,300,878 5.60% 09/02/03 4,000 4,124,980 5.13% 09/15/03 5,000 5,149,010 2.01% 10/10/03 25,000 25,000,000 --------------- 224,492,093 --------------- Federal Home Loan Bank Discount Notes--1.6% 1.60% 12/20/02 10,250 10,227,678 2.28% 02/28/03 30,000 29,987,235 --------------- 40,214,913 --------------- Federal Home Loan Bank Variable Rate Notes--6.2% 1.71%(b) 11/26/02 30,000 29,996,496 1.64%(b) 12/27/02 30,000 29,996,338 1.63%(b) 12/30/02 102,000 101,946,606 --------------- 161,939,440 --------------- Federal Home Loan Mortgage Corporation Discount Notes--5.9% 2.15% 11/07/02 24,000 23,991,400 1.70% 12/19/02 25,000 24,943,333 2.23% 01/02/03 30,000 29,884,783 1.86% 07/17/03 25,000 24,666,750 1.92% 07/17/03 25,000 24,656,000 1.97% 07/17/03 25,000 24,647,042 --------------- 152,789,308 ---------------
Par Maturity (000) Value -------- -------- --------------- AGENCY OBLIGATIONS (continued) Federal National Mortgage Association Bonds--3.8% 6.80% 01/10/03 $ 20,000 $ 20,166,441 2.25% 01/28/03 15,000 14,999,706 5.75% 04/15/03 23,841 24,284,151 4.00% 08/15/03 5,000 5,086,583 5.91% 08/25/03 5,000 5,166,074 4.75% 11/14/03 8,500 8,752,058 3.13% 11/15/03 20,000 20,271,059 --------------- 98,726,072 --------------- Federal National Mortgage Association Discount Notes--9.3% 1.61% 11/06/02 40,000 39,991,055 2.40% 11/15/02 15,000 14,986,000 1.66% 12/31/02 55,000 54,848,292 1.56% 01/29/03 25,000 24,903,583 1.70% 04/16/03 29,870 29,636,541 1.70% 04/23/03 25,000 24,795,764 1.97% 06/27/03 25,000 24,674,403 1.80% 07/25/03 28,000 27,627,600 --------------- 241,463,238 --------------- Federal National Mortgage Association Variable Rate Notes--14.2% 1.64%(b) 11/01/02 40,000 39,979,152 1.65%(b) 11/04/02 30,000 29,999,923 1.68%(b) 11/05/02 60,000 59,998,892 1.65%(b) 11/15/02 25,000 24,992,114 1.70%(b) 11/20/02 25,000 24,987,035 1.65%(b) 12/11/02 100,000 99,949,774 1.59%(b) 01/10/03 54,000 53,994,253 1.65%(b) 01/27/03 35,000 34,995,087 --------------- 368,896,230 --------------- Student Loan Marketing Association Discount Notes--0.1% 1.52% 11/01/02 1,331 1,331,000 --------------- Student Loan Marketing Association Variable Rate Notes--1.5% 1.75%(b) 11/01/02 40,000 39,995,086 --------------- TOTAL AGENCY OBLIGATIONS (Cost $1,623,800,593) 1,623,800,593 --------------- U.S. TREASURY NOTES--0.8% 5.75% 11/30/02 20,000 TOTAL U.S. TREASURY NOTES (Cost $20,059,518) 20,059,518 ---------------
See accompanying notes to financial statements. 8 FedFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- REPURCHASE AGREEMENTS--40.4% Deutsche Bank Securities, Inc. 1.70% 11/21/02(c) $150,000 $ 150,000,000 (Agreement dated 10/31/02 to be repurchased at $150,148,750, collateralized by $151,997,180 Federal National Mortgage Association Variable Rate Notes 5.92% to 6.23% due from 05/01/11 to 10/01/11. The market value is $154,500,001.) Deutsche Bank Securities, Inc. 1.69% 11/22/02(c) 100,000 100,000,000 (Agreement dated 10/31/02 to be repurchased at $100,098,583, collateralized by $274,788,824 Federal National Mortgage Association Bonds 6.50% to 7.00% due from 04/01/32 to 07/01/32. The market value is $258,920,145.) Goldman, Sachs & Co. 1.93% 11/01/02 200,000 200,000,000 (Agreement dated 10/31/02 to be repurchased at $200,010,722, collateralized by $178,164,238 Federal Home Loan Mortgage Corporation Adjustable Rate Mortgage Notes, Federal Home Loan Mortgage Corporation Bonds and Federal National Mortgage Association Bonds 6.00% to 7.00% due from 12/25/23 to 07/15/32. The market value is $206,000,000.) Morgan Stanley & Co. Incorporated 1.91% 11/01/02 200,000 200,000,000 (Agreement dated 10/31/02 to be repurchased at $200,010,611, collateralized by $321,615,336 Federal Home Loan Mortgage Corporation Bonds, Federal National Mortgage Association Notes, Tennessee Valley Authority Bonds and U.S. Treasury Strips 0.00% to 7.00% due from 05/02/06 to 07/01/32. The market value is $206,073,138.)
Par Maturity (000) Value -------- -------- --------------- REPURCHASE AGREEMENTS (continued) Morgan Stanley & Co. Incorporated 1.93% 11/01/02 $120,087 $ 120,087,000 (Agreement dated 10/31/02 to be repurchased at $120,093,438, collateralized by $193,109,105 Federal Home Loan Mortgage Corporation Bonds, Federal National Mortgage Association Notes, Tennessee Valley Authority Bonds and U.S. Treasury Strips 0.00% to 7.00% due 05/02/06 to 07/01/32. The market value is $123,733,524.) Morgan Stanley & Co. Incorporated 1.77% 11/07/02(c) 150,000 150,000,000 (Agreement dated 10/23/02 to be repurchased at $150,110,313, collateralized by $241,211,502 Federal Home Loan Mortgage Corporation Bonds, Federal National Mortgage Association Notes, Tennessee Valley Authority Bonds and U.S. Treasury Strips 0.00% to 7.00% due from 05/02/06 to 07/01/32. The market value is $154,554,853.) PNC Bank, N.A. 1.58% 11/01/02 29,100 29,100,000 (Agreement dated 10/31/02 to be repurchased at $29,101,273, collateralized by $90,000,000 Federal Home Loan Mortgage Corporation Bonds 5.25% due 01/15/06 . The market value is $97,227,900.) UBS Warburg LLC. 1.83% 11/01/02 100,000 100,000,000 (Agreement dated 10/31/02 to be repurchased at $100,005,083, collateralized by $132,045,000 Federal Home Loan Mortgage Corporation Strips 0.00% due from 01/01/32. The market value is $103,000,684.) TOTAL REPURCHASE AGREEMENTS --------------- (Cost $1,049,187,000) 1,049,187,000 ---------------
See accompanying notes to financial statements. 9 FedFund Portfolio Statement of Net Assets (Concluded) --------------------------------------------------------------------------------
Value -------------- TOTAL INVESTMENTS IN SECURITIES (Cost $2,693,047,111(a)) 103.8% $2,693,047,111 LIABILITIES IN EXCESS OF OTHER ASSETS (3.8%) (99,526,831) ----- -------------- NET ASSETS (Equivalent to $1.00 per share based on 1,955,154,770 Institutional Shares, 635,663,946 Dollar Shares and 2,727,527 Bear Stearns Shares outstanding) 100.0% $2,593,520,280 ===== ============== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ($2,593,520,280 / 2,593,546,243) $1.00 =====
-------- (a)Cost for federal income tax purposes. (b)Variable Rate Obligations--The interest rate shown is as of October 31, 2002 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount owned can be recovered upon demand. (c)Agreement has a puttable option where principal and interest owed can be recovered through demand in seven days. FedFund Portfolio Maturity Information October 31, 2002 (Unaudited)
Maturity Par Percentage ------------- -------------- ---------- 1-30 Days $1,622,518,000 60.3% 31-60 Days 292,250,000 10.8 61-90 Days 270,260,000 10.0 91-120 Days 78,000,000 2.9 Over 150 Days 430,811,000 16.0
Average Weighted Maturity--58 days See accompanying notes to financial statements. 10 BlackRock Provident Institutional Funds MuniFund Portfolio Statement of Net Assets October 31, 2002 --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS--100.1% Alabama--8.6% Alabama Housing Finance Authority Multifamily Housing RB (Rime Huntsville Project) Series 1996B DN (Federal National Mortgage Association Guaranty) (A-1+, Aaa) 1.85%(b) 11/07/02 $ 10,775 $ 10,775,000 Columbia IDRB (Alabama Power Project) Series 1995B DN (A-1, VMIG-1) 2.00%(b) 11/01/02 12,900 12,900,000 Columbia IDRB (Alabama Power Project) Series 1999A DN (A-1) 2.00%(b) 11/01/02 18,000 18,000,000 Eutaw Industrial Development Board PCRB (Southern Companies Project) DN (A-1, VMIG-1) 2.00%(b) 11/01/02 2,600 2,600,000 Homewood Educational Development Authority RB (Samford University Project) Series 1999 DN (Bank of Nova Scotia LOC) (VMIG-1) 2.00%(b) 11/01/02 10,900 10,900,000 Jefferson County GO Warrants Series 2001B DN (Morgan Guaranty Trust LOC) (A-1+, VMIG-1) 2.00%(b) 11/01/02 44,000 44,000,000 --------------- 99,175,000 --------------- Alaska--0.3% Matanuska-Susitna Borough RB (First Union Merlots Trust Receipts) Series 2001A-114 DN (First Union Bank LOC) (A-1) 1.94%(b) 11/07/02 3,225 3,225,000 --------------- Arizona--0.6% Glendale GO Series 2002 MB (AA, Aa2) 2.50% 07/01/03 2,250 2,262,513 Maricopa County GO (Community College District Project) Series 2001D MB (AAA, Aaa) 4.00% 07/01/03 5,000 5,076,924 --------------- 7,339,437 --------------- Arkansas--1.6% Arkansas Housing Finance Authority RB (Baptist Health Project) Series 1995 DN (MBIA Insurance) (A-1+) 1.95%(b) 11/07/02 14,900 14,900,000
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Arkansas (continued) University of Arkansas Regents RB Series 1998 DN (MBIA Insurance) (VMIG-1) 1.90%(b) 11/07/02 $ 4,100 $ 4,100,000 --------------- 19,000,000 --------------- California--5.8% California State RB Series 2002 DN (SP-1, MIG-1) 1.72%(b) 11/07/02 8,500 8,500,000 California State Revenue Anticipation Warrants Series 2002B MB (SP-1, MIG-1) 3.00% 11/27/02 15,000 15,012,175 California State Revenue Anticipation Warrants Series 2002C MB (SP-1, MIG-1) 2.00% 01/30/03 10,000 10,003,436 California State Series 2002 RAN (SP-1, MIG-1) 2.50% 06/20/03 18,000 18,104,708 Metropolitan Water District of Southern California RB Series 2000B-4 DN (Westdeutsche Landesbank Girozentrale LOC) (A-1+, VMIG-1) 1.80%(b) 11/07/02 8,800 8,800,000 Sacramento Multifamily Housing Refunding RB Series 1990A DN (Federal National Mortgage Association Guaranty) (A-1+) 1.85%(b) 11/07/02 6,620 6,620,000 --------------- 67,040,319 --------------- Colorado--1.7% Colorado Educational & Cultural Facilities Authority RB (Denver Museum Project) Series 2001 DN (A-1) 1.90%(b) 11/07/02 2,000 2,000,000 Colorado Educational & Cultural Facilities Authority RB (National Cable Television Center Project) Series 1999 DN (A-1+) 1.90%(b) 11/07/02 945 945,000 Garfield County Hospital RB Series 1999 DN (Banc One LOC) (A-1) 1.90%(b) 11/07/02 17,260 17,260,000 --------------- 20,205,000 ---------------
See accompanying notes to financial statements. 11 MuniFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Delaware--0.2% Delaware State Economic Development Authority RB (St. Annes Episcopal Project) Series 2001 DN (Wilmington Trust LOC) (A-1) 1.90%(b) 11/07/02 $ 2,000 $ 2,000,000 --------------- District of Columbia--0.2% District of Columbia Refunding RB Series 2001 DN (Suntrust Bank LOC) (VMIG-1) 1.85%(b) 11/07/02 1,900 1,900,000 --------------- Florida--2.6% Broward County Municipal Securities Trust Certificates RB (Bear Stearns Trust Receipts) Series 2002 DN (FSA Insurance) (A-1) 1.97%(b) 11/07/02 5,000 5,000,000 Florida Housing Finance Corporation Multifamily RB Series 2000 Pt-1234 DN (Merrill Lynch & Co. Guaranty) (A-1C+) 2.10%(b) 11/07/02 13,030 13,030,000 Florida State Department of Environmental Protection RB Series 2001-637 DN (MBIA Insurance) (A-1+) 1.93%(b) 11/07/02 3,950 3,950,000 Lee County Healthcare Facilities IDRB Series 1999 DN (Fifth Third Bank LOC) 1.85%(b) 11/07/02 2,000 2,000,000 Orange County Housing Finance Authority Multifamily RB (Post Fountains at Lee Vista Project) Series 1997E DN (Federal National Mortgage Association Guaranty) (A-1+) 1.85%(b) 11/07/02 5,915 5,915,000 --------------- 29,895,000 --------------- Georgia--3.3% Albany Dougherty County Housing Financial Authority RB (Phoebe Putney Memorial Hospital Project) Series 1996 DN (Suntrust Bank LOC) (A-1+, VMIG-1) 1.95%(b) 11/07/02 3,800 3,800,000
Par Maturity (000) Value -------- ------- --------------- MUNICIPAL BONDS (continued) Georgia (continued) Bibb County Methodist Home Development Authority RB Series 2001 DN (Suntrust Bank LOC) (VMIG-1) 1.85%(b) 11/07/02 $3,500 $ 3,500,000 Clayton County Hospital Authority RB Series 1998B DN (Suntrust Bank LOC) 1.85%(b) 11/07/02 1,965 1,965,000 Cobb County Development Authority RB (Highland Park Associates Project) DN (Suntrust Bank LOC) 1.85%(b) 11/07/02 3,550 3,550,000 Cobb County Housing Authority Multifamily Housing RB (Post Bridge Project) DN (Federal National Mortgage Association Guaranty) (A-1+, VMIG-1) 1.85%(b) 11/07/02 8,300 8,300,000 Dekalb County Housing Authority Multifamily Housing RB (Clairmont Crest Project) DN (Federal National Mortgage Association Guaranty) (A-1+, VMIG-1) 1.85%(b) 11/07/02 500 500,000 Fulton County Development Authority RB (Epstein School Project) Series 1997 DN (AMBAC Insurance) (Aa3) 1.85%(b) 11/07/02 2,000 2,000,000 Fulton County Development Authority RB (Galloway Schools Incorporated Project) Series 2002 DN (Suntrust Bank LOC) (VMIG-1) 1.85%(b) 11/07/02 7,500 7,500,000 Fulton County Development Authority RB (Trinity School Project) Series 2001 DN (Suntrust Bank LOC) (VMIG-1) 1.85%(b) 11/07/02 2,000 2,000,000 Georgia GO Series 1991C MB (AAA, Aaa) 6.40% 04/01/03 300 305,521 Georgia GO Series 1994E MB (AAA, Aaa) 6.75% 12/01/02 1,000 1,003,996 La Grange Development Authority RB Series 2001 DN (Suntrust Bank LOC) (VMIG-1) 1.93%(b) 11/07/02 1,000 1,000,000
See accompanying notes to financial statements. 12 MuniFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- ------- --------------- MUNICIPAL BONDS (continued) Georgia (continued) Macon-Bibb County Hospital Authority RB (The Medical Center of Central Georgia Project) DN (Suntrust Bank LOC) 1.85%(b) 11/07/02 $3,000 $ 3,000,000 --------------- 38,424,517 --------------- Hawaii--0.3% Hawaii GO (Citibank Eagle Trust Receipts) Series 2002 DN (FSA Insurance) (A-1+) 1.94%(b) 11/07/02 3,600 3,600,000 --------------- Illinois--9.1% Chicago Board of Education GO (First Union Merlots Trust Receipts) Series 1999A-47 DN (First Union Bank LOC) (A-1) 1.94%(b) 11/07/02 3,095 3,095,000 Chicago Board of Education Municipal Securities Trust Certificates RB (Bear Stearns Trust Receipts) Series 2001 DN (FSA Insurance) (A-1) 1.97%(b) 11/07/02 4,695 4,695,000 Chicago GO (First Union Merlots Trust Receipts) Series 2000W DN (AMBAC Insurance, First Union LOC) (VMIG-1) 1.94%(b) 11/07/02 2,000 2,000,000 Chicago O'Hare International Airport RB (General Airport Second Lien Project) Series 1984A DN (Westpac Banking Corporation LOC) (A-1+) 1.83%(b) 11/07/02 2,050 2,050,000 Chicago O'Hare International Airport RB Series 2002A-25 DN (Wachovia Bank LOC) (VMIG-1) 1.94%(b) 11/07/02 5,335 5,335,000 Chicago Sales Tax RB (First Union Merlots Trust Receipts) DN (FGIC Insurance) (VMIG-1) 1.94%(b) 11/07/02 5,000 5,000,000 Cook County GO Series 1992A MB (AAA, Aaa) 6.60% 11/15/02 730 745,997 Du Page County Municipal Securities Trust Certificates RB (Bear Stearns Trust Receipts) Series 2001A DN (FSA Insurance, Bear Stearns SBPA) (A-1) 1.97%(b) 11/07/02 7,000 7,000,000
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Illinois (continued) Illinois Development Finance Authority IDRB (Merrill Lynch Trust Receipts) Series 2001 DN (Merrill Lynch & Company LOC) (A-1C+) 2.10%(b) 11/07/02 $ 10,000 $ 10,000,000 Illinois Development Finance Authority RB (Decatur Mental Health Center Project) Series 1997 DN (First of America LOC) 1.95%(b) 11/07/02 2,910 2,910,000 Illinois Educational Facility Authority RB (Aurora University Project) Series 2002 DN (Fifth Third Bank LOC) (VMIG-1) 1.90%(b) 11/07/02 2,000 2,000,000 Illinois GO (ABN AMRO Munitops Trust Certificates) Series 2002-23 MB (MBIA Insurance) (VMIG-1, F1+) 1.90% 04/01/03 2,100 2,100,000 Illinois GO Series 1998 MB (FSA Insurance) (AAA, Aaa) 5.00% 04/01/03 2,600 2,635,767 Illinois GO Series 2001 MB (AA, Aa2) 5.00% 08/01/03 4,320 4,435,323 Illinois Health Facilities Authority Municipal Securities Trust Certificates RB (Bear Steans Trust Receipts) Series 2002 DN (MBIA Insurance) (A-1) 1.97%(b) 11/07/02 4,990 4,990,000 Illinois Health Facilities Authority RB (Helping Hand Rehabilitation Project) Series 2001 DN (Fifth Third Bank LOC) 1.85%(b) 11/07/02 4,000 4,000,000 Illinois Health Facilities Authority RB (Lutheran Home & Services Project) Series 2001 DN (Allied Irish Bank LOC) (A-1+) 2.05%(b) 11/07/02 12,500 12,500,000 Illinois Hospital Finance Agency RB (Evanston Memorial Hospital Project) MB (A-1+, VMIG-1) 1.40% 01/23/03 3,000 3,000,000 Illinois Regional Transportation Authority RB (First Union Merlots Trust Receipts) Series 2002A-24 DN (Wachovia Bank LOC) (VMIG-1) 1.94%(b) 11/07/02 12,795 12,795,000
See accompanying notes to financial statements. 13 MuniFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- ------- --------------- MUNICIPAL BONDS (continued) Illinois (continued) Peoria Heights Limited Obligation RB Series 2001 DN (National City Bank LOC) 1.95%(b) 11/07/02 $3,000 $ 3,000,000 University of Illinois Auxiliary Facilities System RB (Citibank Eagle Tax- Exempt Trust Receipts) Series 2000 DN (MBIA Insurance) (VMIG-1) 1.94%(b) 11/07/02 3,500 3,500,000 Warren County Industrial Project RB (Monmouth College Project) Series 2002 DN (VMIG-1) 1.85%(b) 11/07/02 6,505 6,505,000 --------------- 104,292,087 --------------- Indiana--1.2% Gary RB (Redevelopment District Economic Growth Project) Series 2001A DN (American National Bank & Trust LOC) (A-1) 1.95%(b) 11/07/02 1,535 1,535,000 Indiana Municipal Power Agency RB (Power Supply System Project) Series 2000A DN (Toronto Dominion LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 500 500,000 Indiana Municipal Securities Trust Certificates RB (Bear Stearns Trust Receipts) Series 2001A DN (Bear Stearns Incorporated Guaranty) (A-1) 1.97%(b) 11/07/02 6,000 6,000,000 Indiana University RB (Student Residence System Project) Series 1998 DN (Banc One LOC) (A-1) 1.80%(b) 11/07/02 700 700,000 Purdue University RB Series 1998N MB (AA, Aa2) 4.05% 07/01/03 2,000 2,031,421 Warren Township Vision 2005 School Building Corporation RB (First Union Merlots Trust Receipts) Series 2001A-52 DN (First Union Bank LOC) (A-1) 1.94%(b) 11/07/02 3,300 3,300,000 --------------- 14,066,421 --------------- Iowa--3.7% Des Moines Commercial Development RB (Grand Office Park Project) Series 1985E DN (A-1+) 2.00%(b) 11/07/02 6,000 6,000,000
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Iowa (continued) Iowa Higher Education Loan Authority RB (Private College Project) Series 1985 DN (MBIA Insurance) (A-1+, VMIG-1) 1.90%(b) 11/07/02 $ 1,700 $ 1,700,000 Iowa State School Warrants (Cash Anticipation Program) Series 2002A-3 TRAN (FSA Insurance) (SP-1+, MIG-1) 2.75% 06/20/03 20,000 20,134,125 Urbandale IDRB (Aurora Business Park Association Project) Series 1985 DN (Principal Life Insurance Company Guaranty) (A-1+) 1.95%(b) 11/07/02 9,200 9,200,000 Urbandale IDRB (Meredith Drive Association Project) Series 1985 DN (Principal Life Insurance Company Guaranty) (A-1+) 1.95%(b) 11/07/02 5,500 5,500,000 --------------- 42,534,125 --------------- Kentucky--1.3% Jefferson County Board of Education RB Series 2002N RAN (SP-1+, MIG-1) 2.25% 06/30/03 11,000 11,046,465 Wickliffe PCRB Series 2001 DN (Suntrust Bank LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 4,250 4,250,000 --------------- 15,296,465 --------------- Maine--0.3% Windham GO Series 2002 BAN (SP-1+) 1.63% 01/15/03 3,300 3,302,175 --------------- Maryland--0.5% Calvert County Economic Development RB (Asbury Solomons Incorporated Facilities Project) Series 2001 DN (Kredietbank LOC) (A-1) 1.95% (b) 11/07/02 4,425 4,425,000 Montgomery County Parking Authority RB (Bethesda Parking Lot District Project) Series 2002A MB (FGIC Insurance) (AAA, Aaa) 3.00% 06/01/03 1,010 1,017,692 --------------- 5,442,692 ---------------
See accompanying notes to financial statements. 14 MuniFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Massachusetts--1.6% Commonwealth of Massachusetts GO (First Union Merlots Trust Receipts) Series 2002A MB (FSA Insurance) (A-1, Aaa) 1.75% 02/17/03 $ 2,140 $ 2,140,000 Massachusetts Development Finance Agency RB (Carleton Willard Village Project) Series 2000 DN (Fleet National Bank N.A. LOC) (A-1) 1.95%(b) 11/07/02 10,250 10,250,000 Massachusetts Municipal Wholesale Electric Company Power Supply System RB Series 2001 MB (Bank of New York LOC) (A-1+) 1.75% 09/25/03 6,000 6,000,000 --------------- 18,390,000 --------------- Michigan--3.7% Detroit Sewer & Disposal Authority RB (First Union Merlots Trust Receipts) Series 2001A-112 DN (MBIA Insurance) (VMIG-1) 1.94%(b) 11/07/02 2,485 2,485,000 Garden City Housing Finance Authority RB (Garden City Housing Project) DN (National City Bank LOC) (A-1+) 1.90%(b) 11/07/02 4,500 4,500,000 Kalamazoo Education Authority RB (Friendship Vl Project) Series 1997 DN (Fifth Third Bank LOC) (A-1+) 1.95%(b) 11/07/02 3,835 3,835,000 Michigan Hospital Finance Authority RB Series 1992 MB (AAA, Aaa) 6.80% 12/01/02 1,500 1,535,970 Michigan Housing Development Authority Limited Obligation RB Series 1985 DN (Bank One LOC) (VMIG-1) 1.85%(b) 11/07/02 7,500 7,500,000 Michigan Municipal Bond Authority RB Series 2002C-1 MB (SP-1+) 2.25% 08/22/03 18,000 18,120,137 Michigan Strategic Fund Limited Obligation RB Series 2000 DN (Comerica Bank LOC) 1.95%(b) 11/07/02 4,260 4,260,000 --------------- 42,236,107 ---------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Minnesota--1.7% Detroit Lakes Health Care Facilities RB Series 1993G MB (AAA) 6.00% 02/15/03 $ 1,250 $ 1,289,806 Duluth Economic Development Authority Health Care Facilities RB (Duluth Clinic Project) Series 1992 MB 6.20% 11/01/02 1,800 1,836,000 Hennepin County GO Series 2000B DN (Landesbank Hessen Thuringen Girozentrale LOC) (A-1C+, VMIG-1) 1.75%(b) 11/07/02 2,900 2,900,000 Minneapolis & St. Paul Airport RB Series 2000A DN (FGIC Insurance) (VMIG-1) 1.94%(b) 11/07/02 5,000 5,000,000 Minnesota GO Series 2002 DN (A-1+) 1.94%(b) 11/07/02 4,000 4,000,000 Minnesota Higher Education Facilities Authority RB (Carleton College Project) Series 2000-5-G DN (Wells Fargo Bank LOC) (VMIG-1) 1.75%(b) 11/07/02 180 180,000 Plymouth Meeting IDRB (Scoville Press Incorporated Project) Series 1994 DN (Wells Fargo Bank LOC) 2.10%(b) 11/07/02 1,550 1,550,000 Southern Minnesota Municipal Power Agency RB (Merlot Trust Receipts) Series 2002 DN (MBIA Insurance) (VMIG-1) 1.93%(b) 11/07/02 3,000 3,000,000 --------------- 19,755,806 --------------- Mississippi--0.4% Mississippi Development Bank Special Obligation Bonds RB Series 2002 DN (Amsouth Bank of Alabama LOC) (A-1) 2.00%(b) 11/07/02 4,100 4,100,000 --------------- Missouri--3.5% Lees Summit Multifamily Housing RB (Affordable Housing Acquisition Project) Series 2001A DN (Bayerische Landesbank Hessen LOC) (VMIG-1) 1.95%(b) 11/07/02 10,400 10,400,000
See accompanying notes to financial statements. 15 MuniFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Missouri (continued) Lees Summit Multifamily Housing RB (Affordable Housing Acquisition Project) Series 2001B DN (Bayerische Landesbank Girozentrale LOC) (VMIG-1) 1.95%(b) 11/07/02 $ 19,440 $ 19,440,000 Medical Center Educational Building Corporation RB (Adult Hospital Project) Series 2001 DN (Amsouth Bank of Alabama LOC) (A-1) 1.95%(b) 11/07/02 1,200 1,200,000 Missouri State Development Finance Board Lease RB Series 1999 DN (TransAmerican Life Insurance) (A-1+) 1.92%(b) 11/07/02 2,800 2,800,000 Missouri State Regional Convention & Sports Complex Authority RB Series 1991A MB (AAA, Aaa) 6.90% 08/15/03 4,245 4,425,521 St. Louis County IDA Mutifamily Housing RB (Heatherbrook Gardens Project) DN (U.S. Bank LOC) 2.03%(b) 11/07/02 1,765 1,765,000 --------------- 40,030,521 --------------- Montana--1.5% Forsyth PCRB (Merrill Lynch Trust Receipts) Series 2002 Pt-604 MB (Merrill Lynch SBPA, AMBAC Insurance) (A-1+, Aaa) 1.85% 03/06/03 7,300 7,300,000 Montana GO Series 2002 TRAN (SP-1+, MIG-1) 2.50% 06/30/03 10,000 10,059,460 --------------- 17,359,460 --------------- Nebraska--0.1% Nebraska Public Power RB Series 1993 MB (AAA, Aaa) 6.13% 01/01/03 1,500 1,540,267 --------------- Nevada--2.0% Clark County School District Municipal Securities Trust Certificates (Bear Stearns Trust Receipts) RB Series 2001A DN (FSA Insurance) (A-1+) 1.97%(b) 11/07/02 7,980 7,980,000 Las Vegas Valley Water System TECP (Westdeutsche Landesbank Girozentrale LOC) (A-1+, P-1) 1.45% 11/08/02 6,000 6,000,000
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Nevada (continued) Municipal Securities Trust Certificates RB (Bear Stearns Trust Receipts) Series 2002A DN (FGIC Insurance, Bear Stearns Company LOC) (A-1) 1.97%(b) 11/07/02 $ 6,000 $ 6,000,000 Nevada Division of Housing RB (Single Family Mortgage Project) Series 2002-1 MB (SP-1+) 1.70% 03/31/03 2,860 2,860,000 --------------- 22,840,000 --------------- New Hampshire--0.1% New Hampshire Municipal Bond Bank RB Series 1999C MB (FSA Insurance) (AAA, Aaa) 5.50% 01/15/03 1,000 1,008,085 --------------- New Jersey--2.3% New Jersey Health Care Facilities Finance Authority RB Series 2001 Pt-1319 DN (AMBAC Insurance) (A-1+) 1.83%(b) 11/07/02 2,800 2,800,000 New Jersey Series 2002A TRAN (SP-1+, MIG-1) 3.00% 06/12/03 21,000 21,190,046 New Jersey Transportation Trust Fund Authority RB Series 2002R-149 MB (VMIG-1) 1.70% 02/20/03 2,000 2,000,000 --------------- 25,990,046 --------------- New York--8.8% City of New York GO (Lehman Brothers Trust Receipts) Series 2002D-L28J DN (Lehman Brothers Liquidity Facility) (VMIG-1) 1.95%(b) 11/07/02 30,000 30,000,000 City of New York GO Series 1994B DN (Bayerische Landesbank LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 200 200,000 City of New York GO Series 2002 RAN (SP-1+, MIG-1) 2.50% 04/11/03 10,000 10,049,175 City of New York Housing Development Corporation Multifamily Rental Housing RB (Carnegie Park Project) Series 1997A DN (Federal National Mortgage Association Guaranty) (A-1+) 1.80%(b) 11/07/02 5,100 5,100,000
See accompanying notes to financial statements. 16 MuniFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) New York (continued) City of New York Transitional Finance Authority Financing RB Series 2002-4 BAN (SP-1+, MIG-1) 2.50% 02/26/03 $ 10,000 $ 10,028,212 Dormitory Authority of the State of New York RB (Glen Eddy Incorporated Project) Series 2000 DN (Fleet National Bank LOC) (A-1) 1.90%(b) 11/07/02 2,555 2,555,000 Dormitory Authority of the State of New York RB (New York Methodist Hospital Project) Series 1999 MB (Kredietbank LOC) (AAA, Aaa) 4.25% 07/01/03 500 509,190 Jay Street Development Corporation Courts Facilities RB (Jay Street Project) Series 2001A-1 DN (Morgan Guaranty Trust LOC) (A-1+, VMIG-1) 1.80%(b) 11/07/02 7,300 7,300,000 Long Island Power Authority Electrical System Subordinated RB (Merrill Lynch Trust Reciepts) Series 2002 PA-966 DN (MBIA Insurance) 1.86%(b) 11/07/02 5,600 5,600,000 Long Island Power Authority Electrical System Subordinated RB Series 1998A DN (Westdeutsche Landesbank Girozentrale LOC) (A-1+, VMIG-1) 1.80%(b) 11/07/02 16,560 16,560,000 Municipal Securities Trust Certificates (Bear Stearns Trust Receipts) RB Series 2002A DN (AMBAC Insurance, Bear Stearns Capital Markets Liquidity Facility) (VMIG-1) 1.90%(b) 11/07/02 595 595,000 Municipal Securities Trust Certificates (Bear Stearns Trust Receipts) RB Series 2002A DN (FGIC Insurance) (A-1) 1.97%(b) 11/07/02 6,000 6,000,000 New York State Energy Research & Development Authority PCRB (Niagara Mohawk Power Project) Series 1985C DN (Bank One LOC) (P-1, VMIG-1) 1.90%(b) 11/01/02 450 450,000
Par Maturity (000) Value -------- ------- --------------- MUNICIPAL BONDS (continued) New York (continued) New York State Medical Care Facilities Authority RB Series 1994 DN (Federal Home Loan Bank, Merrill Lynch SBPA) (A-1+) 1.84%(b) 11/07/02 $5,900 $ 5,900,000 --------------- 100,846,577 --------------- North Carolina--1.4% Buncombe County GO Series 1997 DN (Wachovia Bank LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 380 380,000 Guilford County Industrial Facilities & Pollution Recreational Facilities RB Series 2002 DN (Branch Banking & Trust Company LOC) (VMIG-1) 1.90%(b) 11/07/02 2,245 2,245,000 Mecklenburg County GO Series 1996B DN (Bank of America LOC) (A-1+, VMIG-1) 1.75%(b) 11/07/02 700 700,000 North Carolina Capital Facilities Finance Agency Educational Facilities RB Series 2001 DN (Branch Banking & Trust Company LOC) (VMIG-1) 1.90%(b) 11/07/02 2,400 2,400,000 North Carolina Gaston Day School Educational Facilities RB Series 2000 DN (Bank of America LOC) 1.85%(b) 11/07/02 400 400,000 North Carolina GO Series 2002A MB (AAA, Aaa) 4.00% 03/01/03 3,000 3,021,483 North Carolina Housing Finance Agency RB (First Union Merlots Trust Receipts) Series 2000A DN (First Union Bank LOC) (VMIG-1) 1.99%(b) 11/07/02 100 100,000 North Carolina Medical Care Community Hospital RB (Angel Medical Center Incorporated Project) Series 1997 DN (First Union National Bank of North Carolina LOC) (A-1) 1.86%(b) 11/07/02 200 200,000
See accompanying notes to financial statements. 17 MuniFund Portfolio Statement of N et Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- ------- --------------- MUNICIPAL BONDS (continued) North Carolina (continued) North Carolina Medical Care Community Hospital RB (Duke University Hospital Project) Series 1985B DN (A-1+, VMIG-1) 1.80%(b) 11/07/02 $ 300 $ 300,000 North Carolina Medical Care Community Hospital RB (Park Ridge Hospital Project) Series 1988 DN (NationsBank LOC) (A-1, VMIG-1) 1.85%(b) 11/07/02 2,425 2,425,000 North Carolina Medical Care Community Retirement Facilities RB (Aldersgate Project) Series 2001 DN (Branch Banking and Trust Company LOC) (A-1) 1.95%(b) 11/07/02 1,220 1,220,000 North Carolina Medical Care Community Retirement Facilities RB (First Mortgage Project) Series 2001C DN (Branch Banking and Trust Company LOC) (A-1) 1.95%(b) 11/07/02 3,000 3,000,000 --------------- 16,391,483 --------------- Ohio--3.8% Butler County Healthcare Facilities RB (UC Physicians LLC Project) Series 2001 DN (Fifth Third Bank LOC) 1.85%(b) 11/07/02 3,000 3,000,000 Cambridge City Hospital Facilities Authority RB (Regional Medical Center Project) Series 2001 DN (National City Bank LOC) (VMIG-1) 1.90%(b) 11/07/02 2,500 2,500,000 Carroll County RB (Health Care Facilities Project) Series 2000 DN (National City Bank LOC) 1.95%(b) 11/07/02 595 595,000 City of Westerville GO (ABN AMRO Munitops Trust Certificates) Series 2001 DN (ABN-AMRO Bank N.V. LOC) (VMIG-1) 1.86%(b) 11/07/02 1,000 1,000,000 Clinton County Hospital RB Series 1999 DN (National City Bank LOC) (VMIG-1) 1.95%(b) 11/07/02 8,205 8,205,000
Par Maturity (000) Value -------- ------- --------------- MUNICIPAL BONDS (continued) Ohio (continued) Columbus GO Unlimited Tax DN (Westduetsche Landesbank Girozentrale LOC) (A-1+, VMIG-1) 1.75%(b) 11/07/02 $ 325 $ 325,000 Cuyahoga County RB (Oriana Service Civic Facility Project) Series 2001 DN (Key Bank N.A. LOC) 1.95%(b) 11/07/02 3,800 3,800,000 Franklin County Hospital Facilities Referral & Improvement RB (U.S. Health Corporation of Columbus Project) Series 1996A DN (Morgan Guaranty Trust LOC) (VMIG-1) 1.85%(b) 11/07/02 1,225 1,225,000 Hamilton County Healthcare Facilities RB (Talbert Services Incorporated Project) Series 2002 DN (Fifth Third Bank LOC) 1.85%(b) 11/07/02 3,985 3,985,000 Hamilton County Hospital Facilities RB (Beechwood Home Project) DN (Star Banc Corporation LOC) 1.90%(b) 11/07/02 300 300,000 Indian Hill Village Economic Development RB (Cincinnati Country Day School Project) Series 1999 DN (Fifth Third Bank N.A. LOC) 1.83%(b) 11/07/02 2,500 2,500,000 Lucas County Health Facilities Authority RB (Lutheran Homes Society Project) Series 1996 DN (Banc One LOC) (A-1+) 1.85%(b) 11/07/02 1,000 1,000,000 Montgomery County Catholic Health Initiatives RB Series 1997B DN (Morgan Guaranty Trust LOC) (A-1+, VMIG-1) 1.95%(b) 11/07/02 2,600 2,600,000 Montgomery County Healthcare Facilities RB Series 2002 DN (Banc One LOC) 2.00%(b) 11/07/02 2,700 2,700,000 Ohio GO Highway Capital Improvement Series 1998C MB (AAA, Aa1) 4.50% 05/01/03 2,000 2,028,459 Ohio Water Development Authority PCRB (Philip Morris Company Project) Series 1997 DN (P-1) 2.05%(b) 11/07/02 2,500 2,500,000
See accompanying notes to financial statements. 18 MuniFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Ohio (continued) Warren County Health Care Facilities RB (Otterbein Homes Project) Series 1998B DN (Fifth Third Bank LOC) (A-1+) 2.00%(b) 11/07/02 $ 1,020 $ 1,020,185 Washington County RB (Hospital Facilities Project) Series 2001 DN (Fifth Third Bank LOC) 1.85%(b) 11/07/02 1,500 1,500,000 Wood County Facilities Import Piping Industry RB Series 2001 DN (Key Bank N.A. LOC) 1.95%(b) 11/07/02 3,000 3,000,000 --------------- 43,783,644 --------------- Oklahoma--0.4% Oklahoma State Industrial Authority RB (Casady School Project) Series 2001 DN (Banc One LOC) 2.05%(b) 11/07/02 2,915 2,915,000 Tulsa County GO (Independent School District Combined Purpose Bonds) Series 2001A MB (FSA Insurance) (AAA, Aaa) 4.00% 03/01/03 2,000 2,012,966 --------------- 4,927,966 --------------- Oregon--0.2% Oregon Health, Housing, Education & Cultural Facility Authority RB (Peacehealth Project) Series 1998 DN (SPA-Allied Irish Bank LOC) (A-1, VMIG-1) 1.90%(b) 11/07/02 2,400 2,400,000 --------------- Pennsylvania--4.7% Eastern Pennsylvania Industrial & Commercial Development Authority IDRB (Electronic Data System Project) Series 1993 DN (Wachovia Bank LOC) 1.94%(b) 11/07/02 5,900 5,900,000 Franklin County IDRB (Chambersburg Hospital Project) Series 2000 DN (AMBAC Insurance) (A-1+) 1.95%(b) 11/07/02 1,100 1,100,000 Harrisburg IDRB Series 2001 DN (Bayerische Landesbank Girozentrale LOC) (A-1) 1.90%(b) 11/07/02 14,965 14,965,000
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Pennsylvania (continued) Lancaster County Hospital Authority RB (Willow Valley Retirement Project) Series 2002A DN (National Westminster LOC) (A-1) 1.95%(b) 11/07/02 $ 13,000 $ 13,000,000 New Garden General Municipal Authority RB Series 1999 DN (AMBAC Insurance, Bank of Nova Scotia LOC) (A-1) 1.95%(b) 11/07/02 19,300 19,300,000 --------------- 54,265,000 --------------- Puerto Rico--0.7% Commonwealth of Puerto Rico Infrastructure Financing Authority GO (ABN AMRO Munitops Trust Certificates) Series 2000A-17 MB (ABN AMRO Bank SBPA) 1.70% 10/22/03 7,900 7,900,000 --------------- South Carolina--1.8% Piedmont Municipal Power Agency Electric Refunding RB Series 1996B DN (Credit Suisse LOC) (A-1+, VMIG-1) 1.80%(b) 11/07/02 6,300 6,300,000 Piedmont Municipal Power Agency Electric Refunding RB Series 1996C DN (Morgan Guaranty Trust LOC) (A-1+, VMIG-1) 1.80%(b) 11/07/02 15,000 15,000,000 --------------- 21,300,000 --------------- Tennessee--4.3% City of Chattanooga Health, Education & Housing Facility Board RB Series 1999 DN (Amsouth Bank of Alabama LOC) (A-1) 1.94%(b) 11/07/02 12,400 12,400,000 Cleveland IDRB (YMCA Chattan Project) Series 1999 DN (Suntrust Bank LOC) 1.85%(b) 11/07/02 2,400 2,400,000 Gallatin Industrial Development Board Educational Facilities RB (John Vianney School Project) DN (Suntrust Bank LOC) (VMIG-1) 1.90%(b) 11/07/02 2,300 2,300,000
See accompanying notes to financial statements. 19 MuniFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Tennessee (continued) Memphis General Improvement Refunding RB DN (Westdeutsche Landesbank Girozentrale LOC) (A-1+, VMIG-1) 1.90%(b) 11/07/02 $ 500 $ 500,000 Memphis GO Series 1995A DN (Westdeutsche Landesbank Girozentrale LOC) (A-1+, VMIG-1) 1.90%(b) 11/07/02 400 400,000 Metropolitan Government Nashville & Davidson County Health & Education Board RB (Belmont University Project) Series 1997 DN (Suntrust Bank LOC) 1.85%(b) 11/07/02 3,400 3,400,000 Metropolitan Government Nashville & Davidson County Health & Education Board RB (Harpeth Hall School Project) DN (Suntrust Bank LOC) (VMIG-1) 1.85%(b) 11/07/02 370 370,000 Metropolitan Government Nashville & Davidson County IDRB (University School Project) Series 2002 DN (Suntrust Bank LOC) (VMIG-1) 1.85%(b) 11/07/02 4,000 4,000,000 Metropolitan Nashville Airport Authority Airport Improvement RB Series 1995 MB (FGIC Insurance) (AAA, Aaa) 5.00% 07/01/03 1,000 1,021,600 Shelby County GO Series 1995A MB (AA+, Aa3) 5.50% 04/01/03 3,500 3,625,188 5.75% 04/01/03 3,750 3,887,954 Shelby County Health Educational & Housing Authority RB Series 1994 DN (Credit Suisse LOC) (A-1+) 1.90%(b) 11/07/02 5,000 5,000,000 Sumner County GO (Capital Outlay Project) Series 2002 DN (Suntrust Bank LOC) (VMIG-1) 1.85%(b) 11/07/02 10,000 10,000,000 --------------- 49,304,742 ---------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Texas--8.0% Austin Water & Wastewater System RB Series 2000 DN (MBIA Insurance) (VMIG-1) 1.94%(b) 11/07/02 $ 2,495 $ 2,495,000 Clear Creek Independent School District RB Series 2002-11-R-161 DN (Permanent School Fund Guaranty) (VMIG-1) 1.94%(b) 11/07/02 3,150 3,150,000 Collin County Housing Finance Corporation Multifamily RB (Merrill Lynch P-Float Receipts) Series 1999 Pt-1160 DN (Merrill Lynch & Company Incorporated SBPA) (A-1C+) 2.06%(b) 11/07/02 4,400 4,400,000 Dallas GO Equipment Acquisition Contractual Obligations Series 2000 MB (AAA, Aaa) 5.25% 08/15/03 3,500 3,596,534 Houston Community College RB Series 2002 DN (MBIA Insurance) (A-1+) 1.93%(b) 11/07/02 5,950 5,950,000 Jefferson County Health Facility Development Corporation RB (First Union Merlots Trust Receipts) Series 2001A-83 DN (First Union Bank LOC) (A-1C+) 1.94%(b) 11/07/02 3,995 3,995,000 Lower Colorado Texas River Authority RB Series 2000 DN (FSA Insurance, First Union Bank LOC) (VMIG-1) 1.94%(b) 11/07/02 2,000 2,000,000 Red River Educational Development Authority RB (Municipal Securities Trust Receipts) Series 2000 DN (Societe Generale LOC) (A-1C+) 1.92%(b) 11/07/02 3,570 3,570,000 Southeast Texas Housing Finance Corporation RB (First Union Merlots Trust Receipts) Series 2001A DN (Federal National Mortgage Association Guaranty) (A-1+) 1.94%(b) 11/07/02 5,545 5,545,000 Texas GO (Lehman Brothers Trust Receipts) Series 2002D DN (Lehman Liquidity SBPA) (VMIG-1) 1.95%(b) 11/07/02 40,000 40,000,000
See accompanying notes to financial statements. 20 MuniFund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- -------- --------------- MUNICIPAL BONDS (continued) Texas (continued) Texas State Department of Housing & Community Affairs Multifamily RB (Merrill Lynch Trust Receipts) Series 2001 Pt-1280 DN (Merrill Lynch & Company SBPA) (A-1C+) 2.15%(b) 11/07/02 $ 1,000 $ 1,000,000 Texas State Housing Agency Multifamily RB Series 2001 DN (A-1+) 1.93%(b) 11/07/02 2,350 2,350,000 Texas Technology University RB (Bear Stearns Trust Receipts) Series 2002A DN (MBIA Insurance) (A-1) 1.97%(b) 11/07/02 13,630 13,630,000 --------------- 91,681,534 --------------- Utah--0.1% University of Utah Research Facilities RB (Biology Research Building Project) Series 1996A MB (MBIA Insurance) (AAA, Aaa) 6.25% 04/01/03 1,290 1,314,319 --------------- Vermont--1.3% Vermont Series 2003A RAN (SP-1+, MIG-1) 2.50% 06/17/03 15,000 15,106,569 --------------- Virginia--1.6% Chesterfield County PCRB Series 1992 DN (Philip Morris Guaranty) (A-1, P-1) 2.05%(b) 11/07/02 10,800 10,800,000 Commonwealth of Virginia Transportation Authority RB Series 1999B DN (Citibank LOC) (A-1+) 1.94%(b) 11/07/02 1,000 1,000,000 Fairfax County IDRB (Fairfax Hospital System Project) Series 1988B DN (Inova Health System Liquidity) (A-1+, VMIG-1) 2.05%(b) 11/07/02 200 200,000 Virginia GO Series 1994 MB (Aaa) 6.50% 06/01/03 5,050 5,297,924 Virginia Resource Authority RB (Henrico County Project) Series 1997 DN (Crestar Bank N.A. LOC) (A-1+) 1.95%(b) 11/07/02 1,600 1,600,000 --------------- 18,897,924 ---------------
Par Maturity (000) Value -------- ------- --------------- MUNICIPAL BONDS (continued) Washington--2.3% King County GO (ABN AMRO Munitops Trust Certificates)Series 2001-1 DN (MBIA Insurance) (VMIG-1) 1.91%(b) 11/07/02 $2,500 $ 2,500,000 King County GO (School District No. 408 Project) Series 1992A MB (A+, A1) 6.60% 12/01/02 1,000 1,013,911 Northwest Electric RB Series 2002-II-R- 150 MB (MBIA Insurance) (VMIG-1) 1.75% 02/27/03 6,495 6,495,000 Seattle Municipal Light & Power RB (First Union Merlots Trust Receipts) Series 2001A-56 DN (First Union Bank LOC) (VMIG-1) 1.94%(b) 11/07/02 7,475 7,475,000 Washington GO (Piper Jaffray Trust Certificates) Series 2002G DN (Bank of New York LOC) (VMIG-1) 1.96%(b) 11/07/02 5,170 5,170,000 Washington GO Series 2002A-57 DN (MBIA Insurance) 1.94%(b) 11/07/02 3,685 3,685,000 --------------- 26,338,911 --------------- Wisconsin--2.4% Appleton Redevelopment Authority RB (Fox City Project) Series 2001B DN (Banc One LOC) (VMIG-1) 1.95%(b) 11/07/02 6,600 6,600,000 Southeast Wisconsin Professional Baseball Park District Sales Tax RB Series 2000Y DN (MBIA Insurance) (VMIG-1) 1.94%(b) 11/07/02 3,000 3,000,000 Wisconsin State Health & Educational Facilities Authority RB (Oakwood Village Project) Series 2000B DN (Marshall & Ilsley Bank LOC) (A-1) 2.00%(b) 11/07/02 3,000 3,000,000 Wisconsin State Health & Educational Facilities Authority RB (Pooled Loan Financing Program) Series 2002F DN (Federal Home Loan Bank Guaranty) (VMIG-1) 1.90%(b) 11/07/02 2,995 2,995,000
See accompanying notes to financial statements. 21 MuniFund Portfolio Statement of Net Assets (Concluded) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- ------- -------------- MUNICIPAL BONDS (continued) Wisconsin (continued) Wisconsin State Health & Educational Facilities Authority RB (St. Joseph's Community Hospital Project) Series 2001 DN (Marshall & Ilsley Bank LOC) (A-1) 2.00%(b) 11/07/02 $11,600 $ 11,600,000 -------------- 27,195,000 -------------- Multi-State--0.1% Societe Generale Pooled Trust RB (Various Bond Issurers) Series 2001B DN (Merrill Lynch & Company Guaranty) (A-1C+) 2.10%(b) 11/07/02 750 750,000 -------------- TOTAL INVESTMENTS IN SECURITIES (Cost $1,152,392,199(a)) 100.1% $1,152,392,199 LIABILITIES IN EXCESS OF OTHER ASSETS (0.1%) (1,613,916) ---- -------------- NET ASSETS (Equivalent to $1.00 per share based on 1,037,191,567 Institutional Shares, 74,528,604 Dollar Shares, 11,196,353 Cash Management Shares, 8,626,433 Cash Reserve Shares, 13,051,148 Administration Shares and 6,215,207 Bear Stearns Shares outstanding.) 100.0% $1,150,778,283 ===== ============== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ($1,150,778,283 / 1,150,809,312) $1.00 =====
-------- (a)Cost for federal income tax purposes. (b)Variable Rate Obligations--The interest rate shown is as of October 31, 2002 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount owned can be recovered upon demand. MuniFund Portfolio Maturity Information October 31, 2002 (Unaudited)
Maturity Par Percentage ------------- ------------ ---------- 1-30 Days $909,490,185 79.1% 31-60 Days 3,500,000 0.3 61-90 Days 8,800,000 0.8 91-120 Days 31,885,000 2.8 121-150 Days 12,300,000 1.1 Over 150 Days 184,175,000 15.9
Average Weighted Maturity--49 days See accompanying notes to financial statements. 22 BlackRock Provident Institutional Funds California Money Fund Portfolio Statement of Net Assets October 31, 2002 --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS--98.9% California--94.6% ABAG Finance Authority RB (Blood Centers of Pacific Project) Series 2002A DN (Wells Fargo Bank N.A. LOC) (A-1+, AA) 1.90%(b) 11/01/02 $ 6,385 $ 6,385,000 Alameda-Contra Costa Schools Finance Authority Certificates of Participation RB (Capital Improvements Financing Project) Series 1997F DN (Kredietbank LOC) (A-1+) 1.95%(b) 11/07/02 1,000 1,000,000 California Communities Housing & Finance Agency RB (Lease Revenue Pass-Through Obligation) Series 2001A DN (Societe Generale LOC) (A-1+) 1.95%(b) 11/07/02 4,000 4,000,000 California Educational Facilities Authority RB (Art Center Design College Project) Series 2002A DN (Allied Irish Bank SBPA) (VMIG-1) 2.00%(b) 11/07/02 3,845 3,845,000 California Educational Facilities Authority RB (Santa Clara University Project) Series 2002B DN (MBIA Insurance, Allied Irish Bank SBPA) (VMIG-1) 2.00%(b) 11/07/02 2,000 2,000,000 California GO (Wachovia Merlots Trust Receipts) Series 2002A-47 DN (MBIA Insurance, Wachovia Bank LOC) (VMIG-1) 1.94%(b) 11/07/02 3,435 3,435,000 California Health Facilities Finance Authority RB (Catholic Healthcare West Project) Series 1988C DN (MBIA Insurance, Morgan Guaranty Trust SBPA) (A-1+, VMIG-1) 1.90%(b) 11/07/02 4,700 4,700,000 California Health Facilities Finance Authority RB (Sutter Health System Project) Series 1996B DN (MBIA Insurance, Morgan Guaranty Trust SBPA) (A-1+, VMIG-1) 1.90%(b) 11/01/02 10,500 10,500,000 California Health Facilities Finance Authority RB Series 2002-591 DN (Morgan Stanley Group LOC) (A-1+) 1.90%(b) 11/07/02 10,000 10,000,000
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) California (continued) California Infrastructure & Economic Development Bank RB (Academy of Motion Pictures Arts & Science Project) Series 2002 DN (AMBAC Insurance, J.P. Morgan Chase LOC) (A-1+, VMIG-1) 1.83%(b) 11/07/02 $ 2,500 $ 2,500,000 California Infrastructure & Economic Development Bank RB Series 2002B DN (AMBAC Insurance, J.P. Morgan Chase SBPA) (A-1+, Aaa) 1.95%(b) 11/01/02 3,900 3,900,000 California Infrastructure Financing TECP (A-1+, P-1) 1.50% 01/24/03 5,000 5,000,000 California State RB Series 2002F DN (SP-1, MIG-1) 1.79%(b) 11/07/02 5,000 5,000,000 California State Index Notes Series 2002 DN (SP-1, MIG-1) 1.77%(b) 11/07/02 10,000 10,000,000 California State Revenue Anticipation Warrants Series 2002B MB (SP-1, MIG-1) 3.00% 11/27/02 20,000 20,016,233 California State Revenue Anticipation Warrants Series 2002C MB (SP-1, MIG-1) 2.00% 01/30/03 15,000 15,005,154 California State Series 2002 RAN (SP-1, MIG-1) 2.75% 06/20/03 10,000 10,070,500 2.50% 06/27/03 20,000 20,103,071 California State Trust Receipts RB Series 1997 SGA-58 DN (FGIC Insurance, Societe Generale SBPA) (SP-1+, MIG-1) 1.90%(b) 11/07/02 12,365 12,365,000 California State Trust Receipts Series 2002L-33J DN (A-1+, VMIG-1) 2.00%(b) 11/07/02 13,000 13,000,000 California Statewide Community Development Authority RB (Biola University Project) Series 2002B DN (Banque Nationale de Paris LOC) (VMIG-1) 1.85%(b) 11/07/02 3,100 3,100,000
See accompanying notes to financial statements. 23 California Money Fund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) California (continued) California Statewide Community Development Authority RB Series 1998 DN (MBIA Insurance, Bank of America SBPA) (A-1+, VMIG-1) 1.95%(b) 11/01/02 $ 2,300 $ 2,300,000 Central Valley Finance Authority RB (Carson Ice General Project) Series 1993 MB (AAA) 6.10% 07/01/03 2,100 2,206,165 City of Sacramento GO University School District (ABN AMRO Munitops Trust Certificates) Series 2002-9 MB (ABN AMRO Bank SBPA, MBIA Insurance) (VMIG-1) 1.65% 10/07/03 14,485 14,485,000 Desert Sands Unified School District GO Series 2002 BAN (SP-1+, MIG-1) 3.00% 07/01/03 5,000 5,043,015 Foothill-De Anza Community College GO Series 2000Y DN (First Union National Bank SBPA) (VMIG-1) 1.94%(b) 11/07/02 8,175 8,175,000 Fresno Unified School District GO Series 2002 TRAN (SP-1+) 2.50% 08/27/03 2,000 2,019,073 Glendale Hospital RB Series 2002-590 DN (Morgan Stanley Group LOC) (A-1+) 1.90%(b) 11/07/02 10,000 10,000,000 Irvine Improvement Board ACT 1915 RB (Assessment District No.87-8) Series 1999 DN (Kredietbank N.V. LOC) (A-1, VMIG-1) 1.95%(b) 11/01/02 100 100,000 Irvine Ranch GO Water District Consolidated RB Series 1993B DN (Morgan Guaranty Trust LOC) (A-1+, VMIG-1) 2.15%(b) 11/01/02 200 200,000 Irvine Ranch Water District Consolidated RB Series 1993A DN (Bank America LOC) (A-1+, VMIG-1) 1.95%(b) 11/01/02 3,000 3,000,000 Kern High School District GO Series 2002 TRAN (SP-1+) 2.25% 09/18/03 5,000 5,039,464
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) California (continued) Kings County Housing Authority RB (Edgewater Isle Apartment Project) Series 2001 DN (Federal National Mortgage Association Guaranty) (A-1+, Aaa) 1.90%(b) 11/07/02 $ 5,000 $ 5,000,000 Lemon Grove Multifamily Housing RB (Hillside Terrace Project) Series 2001A DN (Federal National Mortgage Association Guaranty) (A-1+) 1.85%(b) 11/07/02 5,455 5,455,000 Los Angeles County Housing Authority Multifamily Housing RB (Malibu Meadows Project) Series 1998B DN (Federal National Mortgage Association Guaranty) (A-1+) 1.85%(b) 11/07/02 3,200 3,200,000 Los Angeles County Public Works Finance Authority Lease RB Series 2000J DN (AMBAC Insurance, First Union Bank SBPA) (VMIG-1) 1.94%(b) 11/07/02 5,000 5,000,000 Los Angeles County Water & Power RB (ZCM Matched Funding Guaranty Agreement) Series 2001 ZTC-17 DN (FSA Insurance) (VMIG-1) 1.90%(b) 11/07/02 9,900 9,900,000 Los Angeles Unified School District GO Series 2002A TRAN (SP-1+, MIG-1) 2.50% 07/01/03 5,000 5,027,051 Los Angeles Unified School District GO Series 2002C TRAN (SP-1+, MIG-1) 3.25% 07/01/03 5,000 5,051,848 Los Angeles Wastewater Systems RB Series 2001 DN (FGIC Insurance) (A-1+, VMIG-1) 1.85%(b) 11/07/02 6,500 6,500,000 Los Angeles Wastewater Systems RB Series 2002A DN (FGIC Insurance) (A-1+) 1.90%(b) 11/07/02 5,000 5,000,000 Los Angeles Water & Power Systems RB Series 2002A-2 DN (Bayerische Landesbank Girozentrale LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 1,500 1,500,000
See accompanying notes to financial statements. 24 California Money Fund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) California (continued) Los Angeles Water & Power Systems RB Series 2002A-7 DN (Bayerische Landesbank Girozentrale LOC) (A-1+, VMIG-1, F1+) 1.85%(b) 11/07/02 $ 4,500 $ 4,500,000 Los Angeles Water & Power Systems RB Series 2002A-8 DN (J.P. Morgan & Westdeutsche Landesbank SBPA) (A-1+, VMIG-1) 1.85%(b) 11/07/02 8,300 8,300,000 Metropolitan Water District of Southern California Waterworks RB Series 2000B-1 DN (Westdeutsche Landesbank Girozentrale LOC) (A-1+, VMIG-1, F-1+) 1.90%(b) 11/01/02 5,200 5,200,000 Metropolitan Water District of Southern California Waterworks RB Series 2001C-2 DN (Lloyds TSB Bank SBPA) (A-1+, VMIG-1) 1.75%(b) 11/01/02 10,000 10,000,000 Municipal Securities Trust Certificates RB (Bear Stearns Capital Market Liquidity Facility) Series 2002A-9035 DN (FGIC Insurance) (A-1) 1.95%(b) 11/07/02 11,095 11,095,000 Municipal Securities Trust Certificates RB (Bear Stearns Capital Market Liquidity Facility) Series 2002A-9041 DN (FSA Insurance) (A-1) 1.95%(b) 11/07/02 10,700 10,700,000 Newport Beach Hospital RB (Hoag Memorial Presbyterian Hospital Project) Series 1999A DN (A-1+, VMIG-1) 1.90%(b) 11/07/02 20,400 20,400,000 Newport Beach Hospital RB (Hoag Memorial Presbyterian Hospital Project) Series 1999C DN (A-1+, VMIG-1) 1.90%(b) 11/07/02 3,500 3,500,000 Northern California Power Agency RB (Hydroelectric Project No. 1) RB Series 2002B DN (Westdeutsche Landesbank Girozentrale LOC) (A-1+) 1.85%(b) 11/07/02 4,910 4,910,000 Oakland Joint Power Finance Authority Lease RB Series 1998A-1 DN (Commerzbank LOC) (A-1, F-1, VMIG-1) 2.05%(b) 11/07/02 4,400 4,400,000
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) California (continued) Orange County Sanitation District Certificates of Participation Series 1993 DN (AMBAC Insurance, Societe Generale SBPA) (A-1+, VMIG-1) 1.95%(b) 11/01/02 $ 1,800 $ 1,800,000 Orange County Sanitation District Certificates of Participation Series 2000B DN (Dexia Public Finance Bank SBPA) (A-1+, VMIG-1, F1+) 1.95%(b) 11/01/02 5,000 5,000,000 Oxnard School District GO Series 2002 TRAN 3.00% 07/24/03 5,700 5,761,955 Pacific Housing & Finance Agency RB (Lease Revenue Pass-Through Obligation) Series 2001A DN (Societe Generale LOC) (A-1+) 1.95%(b) 11/07/02 4,000 4,000,000 Pico Rivera Public Finance Authority (Water Enterprise Project) RB Series 1992A MB (FGIC Insurance) (AAA, Aaa) 6.00% 12/01/02 4,950 5,066,675 Riverside County Certificates of Participation GO (Riverside County Public Facilities Project) Series 1985 DN (Commerzbank LOC) (A-1, VMIG-1) 2.40%(b) 11/07/02 8,700 8,700,000 Riverside County Community Facilities Authority RB (Winchester Ranch Project) DN (Kredietbank N.V. LOC) (VMIG-1) 1.90%(b) 11/07/02 6,150 6,150,000 Sacramento County Sanitation District Finance Authority RB (First Union Merlots Trust Receipts) Series 2000 DN (First Union National Bank LOC) (VMIG-1) 1.94%(b) 11/07/02 2,600 2,600,000 Sacramento Municipal Utility District RB (Macon Trust Certificates) Series 2002M DN (AMBAC Insurance, Kredietbank LOC) (A-1+) 1.90%(b) 11/07/02 3,975 3,975,000 Sacramento Municipal Utility District RB Series 2000A DN (AMBAC Insurance, First Union National Bank LOC) (VMIG-1) 1.94%(b) 11/07/02 11,155 11,155,000
See accompanying notes to financial statements. 25 California Money Fund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) California (continued) San Bernardino County Certificates of Participation RB (County Central Refunding Project) Series 1996 DN (Commerzbank LOC) (A-2, VMIG-1) 2.05%(b) 11/07/02 $ 5,000 $ 5,000,000 San Diego County & School District Series 2002A TRAN (SP-1+, MIG-1) 3.00% 06/30/03 4,000 4,035,064 San Diego Multifamily Housing RB (University Town Center Apartments Project) DN (Bank America LOC) (A-1, VMIG-1) 1.90%(b) 11/07/02 4,000 4,000,000 San Diego Multifamily Housing RB Trust Receipts Series 2000 PT-475 DN (Federal Home Loan Bank, Merrill Lynch Capital Services SBPA) (A-1+, AAA) 1.89%(b) 11/07/02 1,200 1,199,943 San Francisco GO City & County Unified School District TRAN (SP-1+, MIG-1) 2.50% 12/10/02 5,000 5,004,202 San Jose Evergreen Community College District GO Series 2002J DN (MBIA Insurance, Bank of New York SBPA) (VMIG-1) 1.80%(b) 11/07/02 8,295 8,295,000 San Jose Finance Authority RB Series 2002A BAN (SP-1+, VMIG-1) 2.50% 12/12/02 2,200 2,202,883 San Jose Multifamily Housing RB (Fairway Glen Project) Series1985A DN (FGIC Insurance) (A-1+, VMIG-1) 1.90%(b) 11/07/02 3,000 3,000,000 San Jose Multifamily Housing RB (Timberwood Apartments Project) Series 1995A DN (Wells Fargo Bank LOC) (VMIG-1) 1.90%(b) 11/07/02 3,465 3,465,000 San Leandro Multifamily RB (Parkside Project) Series 1989A DN (Federal National Mortgage Association Guaranty) (A-1+) 1.85%(b) 11/07/02 6,825 6,825,000 Santa Barbara County GO Series 2002A TRAN (SP-1+) 3.00% 07/25/03 2,000 2,021,239
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) California (continued) Santa Clara Electric RB Series 1994A DN (National Westminster LOC) (AAA, VMIG-1) 1.85%(b) 11/07/02 $ 1,500 $ 1,500,000 Ventura County GO Series 2002 TRAN (SP-1+, MIG-1) 3.00% 07/01/03 6,400 6,455,910 ------------- 460,344,445 ------------- Puerto Rico--4.3% Commonwealth of Puerto Rico Highway & Transportation Authority RB Series 2002 PA-1052 DN (Merrill Lynch Capital Services SBPA) (A-1+) 1.88%(b) 11/07/02 3,000 3,000,000 Commonwealth of Puerto Rico Infrastructure Financing Authority GO (ABN AMRO Munitops Trust Certificates) Series 2000A-17 MB (ABN AMRO Bank SBPA) (VMIG-1, F1+) 1.70% 10/22/03 7,500 7,500,000 Municipal Securities Trust Certificates (Bear Stearns Trust Receipts) RB Series 2002A-199 DN (MBIA Insurance, Bear Stearns Capital Markets Liquidity Facility) (A-1) 1.85%(b) 11/07/02 7,395 7,395,000 Puerto Rico Electric Power Authority RB (Goldman Sachs Trust Receipts) Series 2002-1 DN (MBIA Insurance, Bank of New York SBPA) (A-1+) 1.95%(b) 11/07/02 3,000 3,000,000 ------------- 20,895,000 -------------
TOTAL INVESTMENTS IN SECURITIES (Cost $481,239,445(a)) 98.9% 481,239,445 OTHER ASSETS IN EXCESS OF LIABILITIES 1.1% 5,430,981 ----- ------------ NET ASSETS (Equivalent to $1.00 per share based on 456,206,614 Institutional Shares, 29,924,728 Dollar Shares and 667,550 Bear Stearns Shares outstanding) 100.0% $486,670,426 ===== ============ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ($486,670,426 / 486,798,892) $1.00 =====
See accompanying notes to financial statements. 26 California Money Fund Portfolio Statement of Net Assets (Concluded) -------------------------------------------------------------------------------- -------- (a)Cost for federal income tax purposes. (b)Variable Rate Obligations--The interest rate shown is as of October 31, 2002 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount owned can be recovered upon demand. California Money Fund Portfolio Maturity Information October 31, 2002 (Unaudited)
Maturity Par Percentage ------------- ------------ ---------- 1-30 Days $354,125,000 73.8% 31-60 Days 12,150,000 2.5 61-90 Days 5,000,000 1.0 91-120 Days 15,000,000 3.1 Over 150 Days 94,185,000 19.6
Average Weighted Maturity--64 days See accompanying notes to financial statements. 27 BlackRock Provident Institutional Funds New York Money Fund Portfolio Statement of Net Assets October 31, 2002 --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS--100.6% New York--95.6% Albany GO Series 2002 BAN 2.50% 08/01/03 $ 3,000 $ 3,019,868 Albany Series 2002 RAN 2.50% 01/31/03 1,000 1,002,215 Baldwin Unified Free School District GO Series 2002 TAN 2.25% 06/26/03 1,300 1,305,398 2.50% 06/26/03 1,000 1,005,999 Brookhaven Public Improvement Serial Bonds Series 1999 (Kredietbank LOC) MB (Aa1) 5.20% 11/15/02 300 300,408 City of New York Cultural Resources RB (Morgan Stanley Trust Receipts) Series 2001-595 DN (Morgan Stanley Group LOC) (A-1+) 1.90%(b) 11/07/02 4,645 4,645,000 City of New York Cultural Resources RB (Morgan Stanley Trust Receipts) Series 2001-596 DN (Morgan Stanley Group LOC) (A-1+) 1.90%(b) 11/07/02 3,380 3,380,000 City of New York GO Series 1993A-6 DN (Landesbank-Hessen-Thurin LOC) (A-1+) 1.80%(b) 11/07/02 8,390 8,390,000 City of New York GO Series 1994B DN (Bayerische Landesbank LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 3,835 3,835,000 City of New York GO Series 1995F-3 DN (Landesbank Hessen Thuringen Girozentrale LOC) (A-1, VMIG-1) 1.85%(b) 11/07/02 1,700 1,700,000 City of New York GO Series 1995F-4 DN (Landesbank Hessen Thuringen Girozentrale LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 4,600 4,600,000 City of New York GO Series 1995F-5 DN (Bayerische Landesbank Girozentrale LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 6,870 6,870,000 City of New York GO Series 1995F-6 DN (Morgan Guaranty Trust LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 3,000 3,000,000 City of New York GO Trust Receipts Series 1997 DN (Societe Generale, AMBAC Insurance) (A-1+) 1.86%(b) 11/07/02 8,860 8,860,000
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) New York (continued) City of New York Health & Hospital Authority RB Series 1993A MB (AAA, Aaa) 6.30% 02/15/03 $ 200 $ 206,821 City of New York Housing Development Corporation Multifamily Rental Housing RB (Columbus Apartments Project) Series 1995A DN (Federal National Mortgage Association Guaranty) (A-1+) 1.80%(b) 11/07/02 1,500 1,500,000 City of New York Housing Development Corporation Multifamily Rental Housing RB (Carnegie Park Project) Series 1997A DN (Federal National Mortgage Association Guaranty) (A-1+) 1.80%(b) 11/07/02 2,000 2,000,000 City of New York Housing Development Corporation Multifamily Rental Housing RB (Parkgate Development Project) Series 1998A DN (Federal National Mortgage Association) (A-1+) 1.75%(b) 11/07/02 1,000 1,000,000 City of New York Housing Development Corporation Multifamily Rental Housing RB (Westmont Apartments Project) Series 2000A DN (MBIA Insurance, ABN AMRO Bank SBPA) (VMIG-1) 1.85%(b) 11/07/02 6,700 6,700,000 City of New York Industrial Development Agency RB (Allied Irish Bank LOC) Series 2002 DN (VMIG-1) 1.95%(b) 11/07/02 2,000 2,000,000 City of New York Municipal Water Finance Authority RB (Water & Sewer System Project) Series 2000D DN (First Union Bank LOC) (VMIG-1) 1.91%(b) 11/07/02 7,985 7,985,000 City of New York Municipal Water Finance Authority RB Series 2003A MB (AA, Aa2) 3.00% 06/15/03 5,000 5,044,305 City of New York School District GO (Saratoga Springs School District Project) Series 2002 TAN 2.25% 06/30/03 4,000 4,021,937 City of New York Transitional Finance Authority Financing RB (Eagle Tax- Exempt Trust Receipts) Series 2000 DN (Citibank LOC) (A-1+) 1.90%(b) 11/07/02 9,900 9,900,000
See accompanying notes to financial statements. 28 New York Money Fund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) New York (continued) City of New York Transitional Finance Authority Financing RB (Eagle Tax- Exempt Trust Receipts) Series 2001 DN (Citibank LOC) (A-1+) 1.90%(b) 11/07/02 $ 3,300 $ 3,300,000 City of New York Transitional Finance Authority Financing RB (Eagle Tax- Exempt Trust Receipts) DN (Citibank LOC) (VMIG-1) 1.90%(b) 11/07/02 7,000 7,000,000 City of New York Transitional Finance Authority Financing RB (Future Tax Secured Bonds) Series 1998A-2 DN (Morgan Guaranty Trust LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 2,300 2,300,000 City of New York Transitional Finance Authority Financing RB (Future Tax Secured Bonds) Series 2001B DN (Landesbank Hessen Thuringen Girozentrale LOC) (A-1+, VMIG-1) 1.95%(b) 11/07/02 19,800 19,800,000 City of New York Transitional Finance Authority Financing RB Series 2001-3 BAN (SP-1+) 2.75% 11/13/02 7,000 7,001,899 City of New York Transitional Finance Authority Financing RB Series 2002-4 BAN (SP-1+, MIG-1) 2.50% 02/26/03 20,500 20,562,548 City of New York Trust for Cultural Resources RB (The Museum of Broadcasting Project) Series 1989 DN (KBC Bank LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 2,400 2,400,000 Dormitory Authority of the State of New York RB (First Union Merlots Trust Receipts) Series 2001A-30 DN (AMBAC Insurance, First Union National Bank SBPA) (VMIG-1) 1.91%(b) 11/07/02 3,000 3,000,000 Dormitory Authority of the State of New York RB (First Union Merlots Trust Receipts) Series 2001A-65 DN (MBIA Insurance, Wachovia Bank SBPA) (VMIG-1) 1.91%(b) 11/07/02 3,535 3,535,000
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) New York (continued) Dormitory Authority of the State of New York RB (Glen Eddy Incorporated Project) Series 2000 DN (Fleet National Bank LOC) (A-1) 1.90%(b) 11/07/02 $ 1,650 $ 1,650,000 Dormitory Authority of the State of New York RB (Merrill Lynch Trust Receipts) Series 2001-651 DN (MBIA Insurance, Morgan Stanley Liquidity Facility) (A-1+) 1.90%(b) 11/07/02 10,125 10,125,000 Dormitory Authority of the State of New York RB (Metropolitan Museum of Art Project) Series 1993B DN (SP-1+, VMIG-1) 1.80%(b) 11/01/02 2,390 2,390,000 Dormitory Authority of the State of New York RB (Rockefeller University Project) Series 1998A DN (A-1+, VMIG-1) 1.75%(b) 11/07/02 2,635 2,635,000 Dormitory Authority of the State of New York RB (Rockefeller University Project) Series 2002A DN (A-1+) 1.75%(b) 11/07/02 4,000 4,000,000 Dormitory Authority of the State of New York RB (State University Educational Facilities Project) Series 1993B MB (FGIC Insurance) (AAA, Aaa) 5.20% 05/15/03 275 280,549 Dormitory Authority of the State of New York RB Series 2001D DN (MBIA Insurance) (A-1+) 1.90%(b) 11/07/02 1,900 1,900,000 Erie County GO RAN Series 2002 MB (MIG-1, F1+) 2.50% 09/17/03 4,000 4,036,993 Erie County GO Series 2002 MB (Kredietbank LOC) (Aaa) 5.25% 07/01/03 1,000 1,025,182 Fayetteville-Manlius Central School District GO Series 2002 MB (FGIC Insurance) (AAA, Aaa) 2.00% 06/15/03 500 500,608 Franklin County IDA Civic Facility RB (Paul Smith's College Project) Series 1998 DN (Key Bank N.A. LOC) 1.95%(b) 11/07/02 3,780 3,780,000
See accompanying notes to financial statements. 29 New York Money Fund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) New York (continued) Glens Falls City School District Series 2002 BAN 2.25% 07/17/03 $ 3,200 $ 3,214,227 Holley Central School District GO Series 2002 MB (FGIC Insurance) (AAA) 2.00% 06/15/03 300 300,956 Honeoye Central School District GO Series 2002 MB (FGIC Insurance) (AAA) 2.38% 06/15/03 350 351,441 Lewiston-Porter Central School District GO Series 2002 BAN 2.50% 06/18/03 3,000 3,012,931 Livonia Central School District GO Series 2002 MB (FGIC Insurance) (AAA) 3.00% 06/01/03 300 302,199 Long Island Power Authority Electrical Systems RB Series 1999R-513 MB (FSA Insurance, Merrill Lynch Capital Liquidity Facility) (A-1, AAA) 1.60% 07/03/03 5,000 5,000,000 Long Island Power Authority TECP (Bayerische Landesbank Girozentrale LOC) (A-1+, P-1) 1.25% 12/10/02 3,000 3,000,000 Metropolitan Transportation Authority RB (Piper Jaffray Trust Certificates) Series 2002F DN (Bank of New York LOC) (VMIG-1) 1.90%(b) 11/07/02 5,685 5,685,000 Metropolitan Transportation Authority Facilities RB Series 2002D-1 DN (Westdeutsche Landesbank Girozentrale LOC) (A-1+, VMIG-1) 1.85%(b) 11/07/02 5,000 5,000,000 Metropolitan Transportation Authority Facilities RB Series 2000F DN (First Union Bank LOC) (VMIG-1) 1.91%(b) 11/07/02 5,000 5,000,000 Metropolitan Transportation Authority RB (Wachovia Merlots Trust Receipts) Series 2002A-43 DN (FGIC Insurance, Wachovia Bank Liquidity Facility) (VMIG-1) 1.91%(b) 11/07/02 2,500 2,500,000
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) New York (continued) Metropolitan Transportation Authority RB (Wachovia Merlots Trust Receipts) Series 2002A-52 DN (Wachovia Bank LOC) (VMIG-1) 1.91%(b) 11/07/02 $ 8,500 $ 8,500,000 Monroe County Industrial Development Agency RB Series 2002A DN (M&T Bank LOC) (VMIG-1) 1.95%(b) 11/07/02 2,500 2,500,000 Municipal Assistance Corporation RB Series 1997I MB (AA+, Aa1) 5.25% 07/01/03 150 153,636 Municipal Securities Trust Certificates RB (Bear Stearns Trust Receipts) Series 2002A DN (AMBAC Insurance, Bear Stearns Capital Markets Liquidity Facility) (VMIG-1) 1.90%(b) 11/07/02 8,400 8,400,000 Nassau County GO Series 1994P MB (AAA, Aaa) 6.30% 11/01/02 2,000 2,000,000 New York City IDA Civic Facilities RB (Hewitt School Project) Series 2002 DN (Allied Irish Bank LOC) 1.90%(b) 11/07/02 1,600 1,600,000 New York GO (Morgan Stanley Trust Receipts) Series 2002X-725 DN (Morgan Stanley Group LOC) (VMIG-1) 1.90%(b) 11/07/02 3,500 3,500,000 New York GO Series 1995F MB (A, A2) 6.20% 02/15/03 500 505,671 New York GO Series 2000A-8 DN (AMBAC Insurance, Lloyds Bank SBPA) (A-1+, VMIG-1) 1.75%(b) 11/07/02 1,000 1,000,000 New York GO Series 2000B MB (Dexia Credit Local de France LOC) (VMIG-1) 1.50% 08/07/03 3,500 3,500,000 New York Housing Finance Agency Service Contract Obligation RB Series 1997A DN (Commerzbank LOC) (A-1, VMIG-1) 2.25%(b) 11/07/02 6,610 6,610,000 New York RAN Series 2003A (SP-1+, MIG-1) 3.75% 04/11/03 15,000 15,156,056
See accompanying notes to financial statements. 30 New York Money Fund Portfolio Statement of Net Assets (Continued) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) New York (continued) New York State Energy Research & Development Authority PCRB (New York State Electric & Gas Corporation Project) Series 1994C DN (Morgan Guaranty Trust LOC) (A-1+, VMIG-1) 1.90%(b) 11/01/02 $ 11,900 $ 11,900,000 New York State Energy Research & Development Authority PC7RB (New York State Electric & Gas Corporation Project) Series 1994D-2 DN (Bank One N.A. LOC) (A-1+, VMIG-1) 1.90%(b) 11/01/02 2,150 2,150,000 New York State Energy Research & Development Authority PCRB (Niagara Mohawk Power Project) Series 1985B DN (Bank One N.A. LOC) (P-1) 1.90%(b) 11/01/02 11,200 11,200,000 New York State Medical Care Facilities Authority RB Series 1994 DN (Federal Home Loan Bank & Merrill Lynch SBPA) (A-1+) 1.84%(b) 11/07/02 3,395 3,395,000 New York State Thruway TECP (Landesbank Hessen Thuringen Girozentrale LOC) (P-1) 1.25% 12/12/02 2,000 2,000,000 New York State Township Authority Service Contract RB (Highway & Bridges Project) Series 1993 MB (A3) 5.25% 04/01/03 2,000 2,071,915 New York State Urban Development Corporation RB (Personal Income Tax Project) Series 2002A MB (AA, Aa) 1.90% 03/15/03 3,165 3,166,997 New York State Urban Development Corporation RB (Personal Income Tax Project) Series 2002B MB (AA, Aa) 2.75% 12/15/02 2,640 2,643,527 Poland Central School District Series 2002 BAN 2.25% 02/14/03 3,219 3,223,509 Port Authority of New York & New Jersey RB (ABN AMRO Munitops Trust Certificates) Series 2000-19 DN (MBIA Insurance, ABN AMRO Bank SBPA) (VMIG-1, F1+) 1.78%(b) 11/07/02 6,670 6,670,000
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) New York (continued) Port Authority of New York & New Jersey RB Series 2002-656 DN (FSA Insurance, Morgan Stanley Liquidity Facility) (A-1+) 1.90%(b) 11/07/02 $ 4,755 $ 4,755,000 Poughkeepsie Series 2002A BAN 2.50% 05/16/03 5,840 5,862,015 Rockland County IDRB (Northern Manor Tax-Exempt) Series 2002 DN (VMIG-1) 1.95%(b) 11/07/02 2,885 2,885,000 Sachem Central School District (Holbrook Project) Series 2002 BAN (MIG-1) 2.38% 07/23/03 5,000 5,031,174 Tompkins County IDRB Series 2001A DN (HSBC LOC) (VMIG-1) 1.85%(b) 11/07/02 3,240 3,240,000 Triborough Bridge & Tunnel Authority RB (ABN AMRO Munitops Trust Certificates) Series 1999C DN (Westdeutsche Landesbank Girozentrale LOC) (A-1+, VMIG-1) 1.75%(b) 11/07/02 4,100 4,100,000 Triborough Bridge & Tunnel Authority RB (Merrill Lynch Trust Receipts) Series 2002 PA-956 DN (Merrill Lynch Capital Services Liquidity Facility) (A-1+) 1.90%(b) 11/07/02 5,000 5,000,000 Triborough Bridge & Tunnel Authority RB Series 2002-14 DN (AMBAC Insurance, ABN AMRO Bank SBPA) (VMIG-1) 1.81%(b) 11/07/02 4,240 4,240,000 Trumansburg Central School District Series 2002B GO MB (FGIC Insurance) (AAA) 2.00% 06/15/03 1,290 1,292,515 United Nations Development Corporation of New York RB Series 1992A MB (Aaa) 6.00% 07/01/03 1,800 1,889,568 ------------- 367,003,067 ------------- Puerto Rico--5.0% Commonwealth of Puerto Rico GO (Public Improvement Project) Series 2003-11-R-185 DN (FGIC Insurance, Salomon Smith Barney Liquidity Facility) (VMIG-1) 1.85%(b) 11/07/02 4, 405 4,405,000
See accompanying notes to financial statements. 31 New York Money Fund Portfolio Statement of Net Assets (Concluded) --------------------------------------------------------------------------------
Par Maturity (000) Value -------- --------- ------------- MUNICIPAL BONDS (continued) Puerto Rico (continued) Commonwealth of Puerto Rico Highway & Transportation Authority RB Series 2000B DN (MBIA Insurance, First Union National Bank SBPA) (AAA, VMIG-1) 1.84%(b) 11/07/02 $ 2,725 $ 2,725,000 Commonwealth of Puerto Rico Highway & Transportation Authority RB Series 2002 PA-1052 DN (Merrill Lynch Capital Services SBPA) (A-1+) 1.88%(b) 11/07/02 3,000 3,000,000 Commonwealth of Puerto Rico Infrastructure Financing Authority RB (ABN AMRO Munitops Trust Certificates) Series 2000-17 MB (ABN AMRO Bank SBPA) (VMIG-1, F1+) 1.70% 10/22/03 5,000 5,000,000 Puerto Rico Electric Power Authority RB (Societe Generale Municipal Trust Receipts) Series 1997 SGA-44 DN (Societe Generale LOC) (A-1+) 1.85%(b) 11/07/02 3,800 3,800,000 ------------- 18,930,000 -------------
TOTAL INVESTMENTS IN SECURITIES (Cost $385,933,067(a)) 100.6% 385,933,067 LIABILITIES IN EXCESS OF OTHER ASSETS (0.6%) (2,143,243) ----- ------------ NET ASSETS (Equivalent to $1.00 per share based on 362,090,596 Institutional Shares, 4,716,182 Dollar Shares and 16,996,890 Bear Stearns Shares outstanding) 100.0% $383,789,824 ===== ============ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ($383,789,824 / 383,803,668) $1.00 =====
-------- (a)Cost for federal income tax purposes. (b)Variable Rate Obligations--The interest rate shown is as of October 31, 2002 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount owned can be recovered upon demand. New York Money Fund Portfolio Maturity Information October 31, 2002 (Unaudited)
Maturity Par Percentage ------------- ------------ ---------- 1-30 Days $277,240,000 72.0% 31-60 Days 7,640,000 2.0 91-120 Days 25,418,509 6.6 121-150 Days 3,165,000 0.8 Over 150 Days 71,805,000 18.6
Average Weighted Maturity--58 days See accompanying notes to financial statements. 32 Key to Investment Abbreviations AMT Alternative Minimum Tax BAN Bond Anticipation Note DN Demand Note (Variable Rate) ECN Extendable Commercial Note GO General Obligation IDA Industrial Development Authority IDRB Industrial Development Revenue Bond LOC Letter of Credit MB Municipal Bond PCRB Pollution Control Revenue Bond PN Promissory Notes PLC Public Limited Company RB Revenue Bond RAN Revenue Anticipation Note SBPA Stand-by Bond Purchase Agreement TAN Tax Anticipation Note TECP Tax Exempt Commercial Paper TRAN Tax and Revenue Anticipation Note
The Fitch Investors Service, Moody's Investors Service, Inc. and Standard & Poor's Ratings Service ratings of the Investments in the various Portfolios are believed to be the most recent ratings available at October 31, 2002. The ratings have not been audited by the Independent Accountants and, therefore, are not covered by the Report of the Independent Accountants. 33 BlackRock Provident Institutional Funds Statements of Operations For the Year Ended October 31, 2002
TEMPFUND FEDFUND PORTFOLIO PORTFOLIO ------------ ----------- Investment Income: Interest income...................................... $659,491,490 $60,606,217 ------------ ----------- Expenses: Investment advisory fee.............................. 25,776,174 3,330,655 Administration fee................................... 29,141,722 3,871,692 Custodian fee........................................ 2,745,566 367,758 Transfer agent fee................................... 861,299 66,985 Service Organization fees--Dollar Shares............. 11,326,641 1,697,164 Service Organization fees--Cash Management Shares.... 306,246 -- Service Organization fees--Cash Reserve Shares....... 784,276 -- Service Organization fees--Bear Stearns Shares....... 26,510 5,198 Service fees--Administration Shares.................. 36 -- Distribution (12b-1) fees--Bear Stearns Shares....... 19,742 4,043 Legal fees........................................... 315,850 27,893 Audit fees........................................... 139,091 13,027 Printing............................................. 89,089 8,966 Registration fees and expenses....................... (2,191,540) (63,487) Trustees' fees and expenses.......................... 188,424 13,497 Other................................................ 476,781 63,053 ------------ ----------- 70,005,907 9,406,444 ------------ ----------- Less fees waived...................................... (815,008) (1,721,554) Less custody fees paid indirectly..................... -- (2,318) ------------ ----------- Total expenses........................................ 69,190,899 7,682,572 ------------ ----------- Net investment income................................. 590,300,591 52,923,645 Net realized gain (loss) from investment transactions (468,456) 12,318 ------------ ----------- Net increase in net assets resulting from operations. $589,832,135 $52,935,963 ============ ===========
See accompanying notes to financial statements. 34
CALIFORNIA NEW YORK MUNIFUND MONEY FUND MONEY FUND PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ---------- $15,876,762 $ 8,028,598 $5,866,456 ----------- ----------- ---------- 1,719,203 1,059,340 778,965 1,719,203 998,376 731,998 183,922 117,887 90,887 36,220 30,837 23,393 166,117 30,948 10,972 35,754 -- -- 41,685 -- -- 3,397 669 25,517 8,520 -- -- 2,643 520 19,847 5,802 7,838 3,279 2,855 437 944 2,965 -- -- 48,554 7,448 3,166 -- -- -- 24,690 8,762 7,316 ----------- ----------- ---------- 4,001,530 2,263,062 1,696,284 ----------- ----------- ---------- (1,766,569) (1,171,588) (860,984) (64,939) (28,454) (26,608) ----------- ----------- ---------- 2,170,022 1,063,020 808,692 ----------- ----------- ---------- 13,706,740 6,965,578 5,057,764 29,775 63,658 -- ----------- ----------- ---------- $13,736,515 $ 7,029,236 $5,057,764 =========== =========== ==========
35 BlackRock Provident Institutional Funds Statements of Changes in Net Assets
TEMPFUND PORTFOLIO FEDFUND PORTFOLIO --------------------------------- -------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001 ---------------- ---------------- ---------------- ---------------- Increase (decrease) in net assets: Operations: Net investment income............ $ 590,300,591 $ 1,219,618,218 $ 52,923,645 $ 93,538,456 Net gain (loss) on investments... (468,456) 1,082,540 12,318 162,320 ---------------- --------------- -------------- -------------- Net increase in net assets resulting from operations....... 589,832,135 1,220,700,758 52,935,963 93,700,776 ---------------- --------------- -------------- -------------- Distributions to shareholders from: Net investment income: Institutional Shares............. (512,350,973) (1,014,311,889) (41,948,733) (69,875,311) Dollar Shares.................... (74,194,813) (193,595,990) (10,964,918) (23,663,145) Cash Management Shares........... (820,267) (1,814,102) -- -- Cash Reserve Shares.............. (2,884,045) (9,896,237) -- -- Administration Shares............ (587) -- -- -- Bear Stearns Shares.............. (49,906) -- (9,994) -- ---------------- --------------- -------------- -------------- Total distributions from net investment income.............. (590,300,591) (1,219,618,218) (52,923,645) (93,538,456) ---------------- --------------- -------------- -------------- Short-term gains: Institutional Shares............. (576,623) -- -- -- Dollar Shares.................... (97,932) -- -- -- Cash Management Shares........... (1,703) -- -- -- Cash Reserve Shares.............. (4,685) -- -- -- Administration Shares............ -- -- -- -- Bear Stearns Shares.............. -- -- -- -- ---------------- --------------- -------------- -------------- Total distributions from short-term gains............... (680,943) -- -- -- ---------------- --------------- -------------- -------------- Total distributions to shareholders................... (590,981,534) (1,219,618,218) (52,923,645) (93,538,456) ---------------- --------------- -------------- -------------- Capital share transactions......... (7,645,083,423) 15,161,966,786 94,724,717 881,877,575 ---------------- --------------- -------------- -------------- Total increase (decrease) in net assets..................... (7,646,232,822) 15,163,049,326 94,737,035 882,039,895 Net assets: Beginning of period.............. 32,093,718,724 16,930,669,398 2,498,783,245 1,616,743,350 ---------------- --------------- -------------- -------------- End of period.................... $ 24,447,485,902 $32,093,718,724 $2,593,520,280 $2,498,783,245 ================ =============== ============== ==============
See accompanying notes to financial statements. 36 [INTENTIONALLY LEFT BLANK] 37 BlackRock Provident Institutional Funds Statements of Changes in Net Assets
MUNIFUND PORTFOLIO CALIFORNIA MONEY FUND PORTFOLIO -------------------------------- -------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001 ---------------- ---------------- ---------------- ---------------- Increase (decrease) in net assets: Operations: Net investment income.................. $ 13,706,740 $ 24,125,280 $ 6,965,578 $ 15,328,620 Net gain (loss) on investments......... 29,775 95,481 63,658 (65,827) -------------- ------------ ------------ ------------ Net increase in net assets resulting from operations....................... 13,736,515 24,220,761 7,029,236 15,262,793 -------------- ------------ ------------ ------------ Distributions to shareholders from: Net investment income: Institutional Shares................... (12,641,850) (22,101,777) (6,826,635) (15,027,511) Dollar Shares.......................... (781,782) (1,517,981) (138,180) (301,109) Cash Management Shares................. (63,933) (121,863) -- -- Cash Reserve Shares.................... (107,069) (383,659) -- -- Administration Shares.................. (107,784) -- -- -- Bear Stearns Shares.................... (4,322) -- (763) -- -------------- ------------ ------------ ------------ Total distributions from net investment income.................... (13,706,740) (24,125,280) (6,965,578) (15,328,620) -------------- ------------ ------------ ------------ Capital share transactions............... 374,069,376 86,440,047 (83,393,850) (15,880,580) -------------- ------------ ------------ ------------ Total increase (decrease) in net assets............................... 374,099,151 86,535,528 (83,330,192) (15,946,407) Net assets: Beginning of period.................... 776,679,132 690,143,604 570,000,618 585,947,025 -------------- ------------ ------------ ------------ End of period.......................... $1,150,778,283 $776,679,132 $486,670,426 $570,000,618 ============== ============ ============ ============
See accompanying notes to financial statements. 38
NEW YORK MONEY FUND PORTFOLIO -------------------------------- YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ---------------- ---------------- $ 5,057,764 $ 10,463,504 -- 3,335 ------------ ------------ 5,057,764 10,466,839 ------------ ------------ (4,985,458) (10,399,310) (46,498) (64,194) -- -- -- -- -- -- (25,808) -- ------------ ------------ (5,057,764) (10,463,504) ------------ ------------ 9,905,109 70,040,121 ------------ ------------ 9,905,109 70,043,456 373,884,715 303,841,259 ------------ ------------ $383,789,824 $373,884,715 ============ ============
39 BlackRock Provident Institutional Funds Financial Highlights (For a Share Outstanding Throughout Each Period)
DIVIDENDS TO NET ASSET SHAREHOLDERS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT TempFund Portfolio OF PERIOD INCOME INCOME ------------------ --------- ---------- ------------ Institutional Shares 10/31/02 $1.00 $0.0186 ($0.0186) 10/31/01 1.00 0.0477 (0.0477) 10/31/00 1.00 0.0611 (0.0611) 10/01/99 through 10/31/99 1.00 0.0045 (0.0045) 09/30/99 1.00 0.0495 (0.0495) 09/30/98 1.00 0.0549 (0.0549) Dollar Shares 10/31/02 $1.00 $0.0161 ($0.0161) 10/31/01 1.00 0.0452 (0.0452) 10/31/00 1.00 0.0586 (0.0586) 10/01/99 through 10/31/99 1.00 0.0043 (0.0043) 09/30/99 1.00 0.0470 (0.0470) 09/30/98 1.00 0.0524 (0.0524) Cash Management Shares 10/31/02 $1.00 $0.0136 ($0.0136) 10/31/01 1.00 0.0427 (0.0427) 10/31/00 1.00 0.0561 (0.0561) 10/01/99 through 10/31/99 1.00 0.0041 (0.0041) 06/14/99/2/ through 09/30/99 1.00 0.0135 (0.0135) Cash Reserve Shares 10/31/02 $1.00 $0.0146 ($0.0146) 10/31/01 1.00 0.0437 (0.0437) 05/30/00/2/ through 10/31/00 1.00 0.0258 (0.0258) Administration Shares 04/04/02/2 /through 10/31/02 $1.00 $0.0095 ($0.0095) Bear Stearns Shares 05/20/02/2/ through 10/31/02 $1.00 $0.0041 ($0.0041)
See accompanying notes to financial statements. 40
RATIO OF RATIO OF EXPENSES TO RATIO OF NET NET RATIO OF EXPENSES TO AVERAGE INVESTMENT ASSET EXPENSES TO AVERAGE DAILY DAILY NET INCOME TO VALUE, NET ASSETS, AVERAGE NET ASSETS ASSETS AVERAGE END OF TOTAL END OF DAILY NET (INCLUDING (EXCLUDING DAILY NET PERIOD RETURN/6/ PERIOD (000) ASSETS CUSTODY CREDITS) WAIVERS) ASSETS ------ -------- ------------ ----------- ---------------- ----------- ------------ $1.00 1.88% $19,871,753 0.18% 0.18% 0.18% 1.88% 1.00 4.87 26,150,330 0.18 0.18 0.20 4.62 1.00 6.28 15,862,970 0.18 0.18 0.20 6.12 1.00 5.42 13,884,164 0.18/1/ 0.18/1/ 0.20/1/ 5.31/1/ 1.00 5.06 12,045,566 0.18 0.18 0.22 4.96 1.00 5.63 9,686,491 0.18 0.18 0.23 5.50 $1.00 1.62% $ 4,309,354 0.43% 0.43% 0.43% 1.63% 1.00 4.61 5,677,232 0.43 0.43 0.45 4.32 1.00 6.02 815,132 0.43 0.43 0.45 5.94 1.00 5.15/1/ 446,569 0.43/1/ 0.43/1/ 0.45/1/ 5.06/1/ 1.00 4.81 497,178 0.43 0.43 0.47 4.71 1.00 5.38 302,476 0.43 0.43 0.48 5.25 $1.00 1.37% $ 65,140 0.68% 0.68% 0.68% 1.34% 1.00 4.35 58,043 0.68 0.68 0.70 3.93 1.00 5.75 30,242 0.68 0.68 0.70 5.68 1.00 4.92/1/ 14,069 0.68/1/ 0.68/1/ 0.70/1/ 4.81/1/ 1.00 4.60/1/ 13,789 0.68/1/ 0.68/1/ 0.71/1/ 4.57/1/ $1.00 1.47% $ 178,398 0.58% 0.58% 0.58% 1.47% 1.00 4.46 208,114 0.58 0.58 0.60 4.42 1.00 6.24/1/ 222,325 0.58/1/ 0.58/1/ 0.60/1/ 6.16/1/ $1.00 1.66%/1/ $ 124 0.28%/1/ 0.28%/1/ 0.29%/1/ 1.62%/1/ $1.00 0.91%/1/ $ 22,717 1.00%/1/ 1.00%/1/ 1.01%/1/ 0.88%/1/
41 BlackRock Provident Institutional Funds Financial Highlights (For a Share Outstanding Throughout Each Period)
DIVIDENDS TO NET ASSET SHAREHOLDERS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT FedFund Portfolio OF PERIOD INCOME INCOME ----------------- --------- ---------- ------------ Institutional Shares 10/31/02 $1.00 $0.0183 ($ 0.0183) 10/31/01 1.00 0.0469 (0.0469) 10/31/00 1.00 0.0594 (0.0594) 10/31/99 1.00 0.0483 (0.0483) 10/31/98 1.00 0.0535 (0.0535) Dollar Shares 10/31/02 $1.00 $0.0158 ($ 0.0158) 10/31/01 1.00 0.0444 (0.0444) 10/31/00 1.00 0.0569 (0.0569) 10/31/99 1.00 0.0458 (0.0458) 10/31/98 1.00 0.0510 (0.0510) Bear Stearns Shares 05/20/02/2/ through 10/31/02 $1.00 $0.0040 ($ 0.0040)
See accompanying notes to financial statements. 42
RATIO OF RATIO OF EXPENSES TO RATIO OF NET NET RATIO OF EXPENSES TO AVERAGE INVESTMENT ASSET EXPENSES TO AVERAGE DAILY DAILY NET INCOME TO VALUE, NET ASSETS, AVERAGE NET ASSETS ASSETS AVERAGE END OF TOTAL END OF DAILY NET (INCLUDING (EXCLUDING DAILY NET PERIOD RETURN/6/ PERIOD (000) ASSETS CUSTODY CREDITS) WAIVERS) ASSETS ------ -------- ------------ ----------- ---------------- ----------- ------------ $1.00 1.85% $1,955,108 0.20% 0.20% 0.26% 1.82% 1.00 4.79 1,684,597 0.20 0.20 0.27 4.61 1.00 6.10 1,400,232 0.20 0.20 0.29 6.01 1.00 4.94 742,744 0.20 0.20 0.28 4.81 1.00 5.48 1,116,979 0.20 0.20 0.28 5.35 $1.00 1.60% $ 635,685 0.45% 0.45% 0.50% 1.61% 1.00 4.53 814,186 0.45 0.45 0.52 4.18 1.00 5.84 216,511 0.45 0.45 0.54 6.04 1.00 4.69 34,611 0.45 0.45 0.53 4.56 1.00 5.23 30,459 0.45 0.45 0.53 5.10 $1.00 0.89%/1/ $ 2,728 1.00%/1/ 1.00%/1/ 1.08%/1/ 0.87%/1/
43 BlackRock Provident Institutional Funds Financial Highlights (For a Share Outstanding Throughout Each Period)
DIVIDENDS TO NET ASSET SHAREHOLDERS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT MuniFund Portfolio OF PERIOD INCOME INCOME ------------------ --------- ---------- ------------ Institutional Shares 10/31/02 $1.00 $0.0142 ($0.0142) 10/31/01 1.00 0.0302 (0.0302) 10/31/00 1.00 0.0379 (0.0379) 12/01/98 through 10/31/99 1.00 0.0273 (0.0273) 11/30/98 1.00 0.0327 (0.0327) 11/30/97 1.00 0.0338 (0.0338) Dollar Shares 10/31/02 $1.00 $0.0117 ($0.0117) 10/31/01 1.00 0.0277 (0.0277) 10/31/00 1.00 0.0354 (0.0354) 12/01/98 through 10/31/99 1.00 0.0250 (0.0250) 11/30/98 1.00 0.0302 (0.0302) 11/30/97 1.00 0.0313 (0.0313) Cash Management Shares/4/ 10/31/02 $1.00 $0.0085 ($0.0085) 10/31/01 1.00 0.0252 (0.0252) 10/31/00 1.00 0.0329 (0.0329) 06/14/99/2/ through 10/31/99 1.00 0.0099 (0.0099) Cash Reserve Shares 10/31/02 $1.00 $0.0102 ($0.0102) 10/31/01 1.00 0.0262 (0.0262) 08/04/00/2/ through 10/31/00 1.00 0.0090 (0.0090) Administration Shares 04/18/02/2/ through 10/31/02 $1.00 $0.0069 ($0.0069) Bear Stearns Shares 05/20/02/2/ through 10/31/02 $1.00 $0.0024 ($0.0024)
See accompanying notes to financial statements. 44
RATIO OF RATIO OF EXPENSES TO RATIO OF NET NET RATIO OF EXPENSES TO AVERAGE INVESTMENT ASSET EXPENSES TO AVERAGE DAILY DAILY NET INCOME TO VALUE, NET ASSETS, AVERAGE NET ASSETS ASSETS AVERAGE END OF TOTAL END OF DAILY NET (INCLUDING (EXCLUDING DAILY NET PERIOD RETURN/6/ PERIOD (000) ASSETS CUSTODY CREDITS) WAIVERS) ASSETS ------ -------- ------------ ----------- ---------------- ----------- ------------ $1.00 1.43% $1,037,163 0.20% 0.19% 0.37% 1.41% 1.00 3.06 688,837 0.20 0.19 0.39 3.02 1.00 3.86 605,741 0.20 0.19 0.41 3.79 1.00 3.02/1/ 483,033 0.20/1/ 0.20/1/ 0.41/1/ 2.96/1/ 1.00 3.32 467,760 0.25 0.25 0.41 3.26 1.00 3.43 536,794 0.27 0.27 0.41 3.38 $1.00 1.18% $ 74,526 0.45% 0.44% 0.62% 1.18% 1.00 2.81 70,990 0.45 0.44 0.64 2.66 1.00 3.60 63,619 0.45 0.44 0.66 3.55 1.00 2.77/1/ 56,238 0.45/1/ 0.45/1/ 0.66/1/ 2.71/1/ 1.00 3.07 51,736 0.50 0.50 0.66 3.01 1.00 3.18 67,387 0.52 0.52 0.66 3.13 $1.00 0.91%/1/ $ 11,197 0.70%/1/ 0.69%/1/ 0.87%/1/ 0.90%/1/ 1.00 2.55 4,763 0.70 0.69 0.89 2.39 1.00 3.34 3,663 0.70 0.69 0.90 3.33 1.00 2.61/1/ 2,712 0.70/1/ 0.70/1/ 0.92/1/ 2.58/1/ $1.00 1.03% $ 8,626 0.60% 0.59% 0.77% 1.03% 1.00 2.65 12,089 0.60 0.59 0.79 2.68 1.00 3.74/1/ 17,151 0.60/1/ 0.59/1/ 0.79/1/ 3.69/1/ $1.00 1.28%/1/ $ 13,051 0.30%/1/ 0.29%/1/ 0.47%/1/ 1.27%/1/ $1.00 0.54%/1/ $ 6,215 1.00%/1/ 0.99%/1/ 1.16%/1/ 0.57%/1/
45 BlackRock Provident Institutional Funds Financial Highlights (For a Share Outstanding Throughout Each Period)
DIVIDENDS TO NET ASSET SHAREHOLDERS VALUE NET FROM NET BEGINNING INVESTMENT INVESTMENT California Money Fund Portfolio OF PERIOD INCOME INCOME ------------------------------- --------- ---------- ------------ Institutional Shares 10/31/02 $1.00 $0.0132 ($0.0132) 10/31/01 1.00 0.0271 (0.0271) 10/31/00 1.00 0.0326 (0.0326) 02/01/99 through 10/31/99 1.00 0.0201 (0.0201) 01/31/99 1.00 0.0305 (0.0305) 01/31/98 1.00 0.0334 (0.0334) Dollar Shares 10/31/02 $1.00 $0.0107 ($0.0107) 10/31/01 1.00 0.0246 (0.0246) 10/31/00 1.00 0.0301 (0.0301) 02/01/99 through 10/31/99 1.00 0.0182 (0.0182) 01/31/99 1.00 0.0280 (0.0280) 01/31/98 1.00 0.0309 (0.0309) Bear Stearns Shares 05/20/02/2/ through 10/31/02 $1.00 $0.0022 ($0.0022) New York Money Fund Portfolio ----------------------------- Institutional Shares 10/31/02 $1.00 $0.0131 ($0.0131) 10/31/01 1.00 0.0285 (0.0285) 10/31/00 1.00 0.0364 (0.0364) 08/01/99 through 10/31/99 1.00 0.0076 (0.0076) 07/31/99 1.00 0.0289 (0.0289) 07/31/98 1.00 0.0336 (0.0336) Dollar Shares/3/ 10/31/02 $1.00 $0.0106 ($0.0106) 10/31/01 1.00 0.0260 (0.0260) 10/31/00 1.00 0.0205 (0.0205) 08/01/99 through 10/31/99 1.00 -- -- 07/31/99 1.00 -- -- 07/31/98 1.00 0.0303 (0.0303) Bear Stearns Shares 05/20/02/2/ through 10/31/02 $1.00 $0.0021 ($0.0021)
-------- /1/ Annualized. /2/ Commencement of Operations. /3/ There were no Dollar Shares outstanding during the period July 21, 1998 to April 10, 2000. /4/ There were no Cash Management Shares outstanding during the period December 18, 2001 to January 10, 2002. /5/ There were no Cash Management Shares outstanding during the period October 16, 2002 to October 31, 2002. /6/ Past performance is no guarantee of future results. See accompanying notes to financial statements. 46
RATIO OF RATIO OF EXPENSES TO RATIO OF NET NET RATIO OF EXPENSES TO AVERAGE INVESTMENT ASSET EXPENSES TO AVERAGE DAILY DAILY NET INCOME TO VALUE, NET ASSETS, AVERAGE NET ASSETS ASSETS AVERAGE END OF TOTAL END OF DAILY NET (INCLUDING (EXCLUDING DAILY NET PERIOD RETURN/6/ PERIOD (000) ASSETS CUSTODY CREDITS) WAIVERS) ASSETS ------ -------- ------------ ----------- ---------------- ----------- ------------ $1.00 1.33% $456,081 0.20% 0.19% 0.42% 1.32% 1.00 2.74 542,541 0.20 0.19 0.44 2.72 1.00 3.31 575,735 0.20 0.20 0.44 3.25 1.00 2.73/1/ 543,476 0.20/1/ 0.20/1/ 0.45/1/ 2.68/1/ 1.00 3.09 549,170 0.20 0.20 0.45 3.02 1.00 3.39 460,339 0.20 0.20 0.46 3.34 $1.00 1.07% $ 29,922 0.45% 0.45% 0.67% 1.12% 1.00 2.49 27,460 0.45 0.44 0.69 2.45 1.00 3.05 10,212 0.45 0.45 0.69 2.98 1.00 2.48/1/ 8,288 0.45/1/ 0.45/1/ 0.70/1/ 2.43/1/ 1.00 2.84 139,601 0.45 0.45 0.70 2.77 1.00 3.14 130,547 0.45 0.45 0.71 3.09 $1.00 0.48%/1/ $ 668 1.00%/1/ 0.99%/1/ 1.20%/1/ 0.51%/1/ $1.00 1.32% $362,077 0.20% 0.19% 0.41% 1.31% 1.00 2.89 369,989 0.20 0.19 0.44 2.82 1.00 3.71 302,194 0.20 0.19 0.46 3.61 1.00 3.06/1/ 323,247 0.20/1/ 0.20/1/ 0.50/1/ 3.02/1/ 1.00 2.93 295,728 0.20 0.20 0.48 2.87 1.00 3.41 318,091 0.20 0.20 0.48 3.35 $1.00 1.07% $ 4,716 0.45% 0.44% 0.66% 1.06% 1.00 2.63 3,896 0.45 0.44 0.69 2.52 1.00 3.73/1/ 1,647 0.45/1/ 0.44/1/ 0.70/1/ 3.66/1/ 1.00 -- -- -- -- -- -- 1.00 -- -- -- -- -- -- 1.00 3.16/1/ -- 0.45/1/ 0.45/1/ 0.73/1/ 3.11/1/ $1.00 0.46%/1/ $ 16,997 1.00%/1/ 0.99%/1/ 1.19%/1/ 0.46%/1/
47 Notes to Financial Statements BlackRock Provident Institutional Funds (''BPIF'' or the ''Company'') (formerly Provident Institutional Funds) was organized as a Delaware business trust on October 21, 1998. BPIF is the successor to five investment companies: (1) Temporary Investment Fund, Inc. (''Temp''), (2) Trust for Federal Securities (''Fed''), (3) Municipal Fund for Temporary Investment (''Muni''), (4) Municipal Fund for California Investors, Inc. (''Cal Muni'') and (5) Municipal Fund for New York Investors, Inc. (''NY Muni''), (together the ''Predecessor Companies''). The accompanying financial statements and notes are those of the portfolios of Temp, Fed, Muni, Cal Muni and NY Muni, as follows: Temp--TempFund; Fed--FedFund, Muni--MuniFund; Cal Muni--California Money Fund and NY Muni--New York Money Fund. On February 10, 1999, the Predecessor Companies were each reorganized into a separate series of BPIF. BPIF is a no-load, open-end management investment company. FedFund offers six classes of shares: Institutional Shares, Dollar Shares, Administration Shares, Cash Management Shares, Cash Reserve Shares and Bear Stearns Shares. TempFund, MuniFund, California Money Fund and New York Money Fund each offers seven classes of shares: Institutional Shares, Dollar Shares, Cash Management Shares, Cash Reserve Shares, Administration Shares, Plus Shares and Bear Stearns Shares. Pursuant to a Shareholder Service Plan and as specified in a servicing agreement, institutions other than broker/dealers (''Service Organizations''), provide certain services, not intended to promote the sale of the shares, to their clients who beneficially own shares of a particular class, in consideration for the Company's payment of a fee to the Servicing Organization at an annual rate not to exceed .10% for Administration Shares, .25% for Dollar Shares, .40% for Cash Reserve Shares and .50% for Cash Management Shares and Bear Stearns Shares, of the average daily net asset value of such Shares. The difference in the level of fees is related to the type and number of services provided by the Servicing Organization. Pursuant to a Distribution Plan and specified in a related agreement, institutions that are broker/dealers (''Broker/Dealers''), provide certain sales and support services to their clients who beneficially own Plus Shares and Bear Stearns Shares, in consideration for the Company's payment of a fee to the Broker/Dealer at an annual rate not to exceed .25% (not to exceed .40% in the case of New York Money Fund and California Money Fund) of the average daily net asset value with respect to Plus Shares and .35% of the average daily net asset value with respect to Bear Stearns Shares. Dividends paid to Administration, Dollar, Plus, Cash Reserve, Cash Management and Bear Stearns Shares shareholders are reduced by such fees. Institutional Shares are sold to institutional investors who choose not to enter into agreements with BPIF. As of October 31, 2002, no Plus Shares were outstanding. Certain California municipal obligations in the California Money Fund may be obligations of issuers which rely in whole or in part on California State revenues, real property taxes, revenues from health care institutions, or obligations secured by mortgages on real property. Consequently, the possible effect of economic conditions in California or of California law on these obligations must be considered. Certain New York municipal obligations in the New York Money Fund may be obligations of issuers which rely in whole or in part on New York State revenues, real property taxes, revenues from health care institutions, or obligations secured by mortgages on real property. Consequently, the possible effect of economic conditions in New York State or of New York law on these obligations must be considered. (A) Summary of Significant Accounting Policies Use of Estimates--The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that could affect the reported amounts of assets and liabilities at the date of the financial statements and 48 Notes to Financial Statements (Continued) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Certain prior year amounts have been restated to conform with current year presentation. Security Valuation--Portfolio securities are valued under the amortized cost method which approximates current market value. Under this method, securities are valued at cost when purchased and thereafter a constant proportionate amortization of any discount or premium is recorded until maturity of the security. Regular review and monitoring of the valuation is performed in an attempt to avoid dilution or other unfair results to shareholders. The Company seeks to maintain the net asset value per share of each portfolio at $1.00. Repurchase Agreements--The Company may purchase, for TempFund and FedFund, money market instruments from financial institutions, such as banks and non-bank dealers, subject to the seller's agreement to repurchase them at an agreed upon date and price. Collateral for repurchase agreements may have longer maturities than the maximum permissible remaining maturity of portfolio investments, provided the repurchase agreements themselves mature in one year or less. The seller will be required on a daily basis to maintain the value of the securities subject to the agreement at no less than the repurchase price. Repurchase agreements with maturities in excess of seven days are subject to a seven day put feature. Dividends to Shareholders--Dividends from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Security Transactions and Investment Income--Investment transactions are accounted for on the trade date and the cost of investments sold and realized gains and losses thereon are determined by use of the specific identification method for both financial reporting and income tax purposes. Interest income is recorded on the accrual basis. Other--Expenses that are directly related to one of the Portfolios are charged directly to that Portfolio. Other operating expenses are prorated to the Portfolios on the basis of relative net assets. Class specific expenses, such as 12b-1 service fees, are borne by that class. Income, other expenses and realized and unrealized gains and losses of a Portfolio are allocated to the respective class on the basis of the relative net assets each day. (B) Transactions with Affiliates and Related Parties Under agreements between the Company and BlackRock Institutional Management Corporation (''BIMC''), an indirect wholly-owned subsidiary of BlackRock, Inc., BIMC manages the Company's portfolios and maintains their financial accounts. BlackRock, Inc. is an indirect majority-owned subsidiary of The PNC Financial Services Group, Inc. ("PNC"). PFPC Trust Co., an indirect subsidiary of PNC, is the Company's custodian and PFPC Inc. (''PFPC''), an indirect subsidiary of PNC, is the Company's transfer agent and Co-Administrator. BlackRock Distributors, Inc. (''BDI''), an indirect subsidiary of PNC, serves as the Company's distributor. No compensation is payable by the Company to BDI for its distribution services. The Company has entered into an Administration Agreement with PFPC and BIMC for certain administrative services (together the ''Co-Administrators"). Prior to the reorganization as discussed in the first paragraph of the Notes to Financial Statements, Provident Distributors, Inc. was co-administrator with PFPC. 49 Notes to Financial Statements (Continued) In return for their advisory services, the Company pays BIMC a fee, computed daily and payable monthly, based upon an annualized percentage of the average net assets of the TempFund Portfolio as follows: .175% of the first $1 billion, .15% of the next $1 billion, .125% of the next $1 billion, .10% of the next $1 billion, .095% of the next $1 billion, .09% of the next $1 billion, .08% of the next $1 billion, .075% of the next $1 billion and .07% of net assets in excess of $8 billion. With respect to the MuniFund Portfolio, the fee payable, based on the Fund's average daily net assets; and with respect to Fed Fund, the fee payable based on the combined average assets of the Fund and T-Fund Federal Trust Fund and Treasury Trust Fund, other portfolios offered by BPIF, is as follows: .175% of the first $1 billion, .15% of the next $1 billion, .125% of the next $1 billion, .10% of the next $1 billion, .095% of the next $1 billion, .09% of the next $1 billion, .085% of the next $1 billion and .08% of net assets in excess of $7 billion. California Money Fund and New York Money Fund pay BIMC a fee, computed daily and payable monthly, at an annual rate of .20% of average net assets. In return for their administrative services, the Company pays the Co-Administrators a fee, computed daily and payable monthly, based upon an annualized percentage of the average net assets of each Portfolio as follows: .175% of the first $1 billion, .15% of the next $1 billion, .125% of the next $1 billion and .10% of amounts in excess of $3 billion. The Co-Administrators and BIMC have also agreed to reduce their fees to the extent necessary to ensure that the operating expenses (excluding class specific fees paid to Service Organizations and Broker/Dealers) of TempFund does not exceed .18% of its average net assets; and with respect to the other portfolios, do not exceed .20% of their respective average net assets. For the year ended October 31, 2002, the Co-Administrators and BIMC, as Adviser, waived a total of $815,008 of the administration and advisory fees payable to them with respect to TempFund, $1,721,554 with respect to FedFund, $1,766,569 with respect to MuniFund, $1,171,588 with respect to California Money Fund and $860,984 with respect to New York Money Fund. Pursuant to the Company's operating procedures, custodian fees may be reduced by amounts calculated on uninvested cash balances ("Custody Credits"). For the year ended October 31, 2002, custody credits earned were as follows: $2,318 with respect to FedFund, $64,939 with respect to MuniFund, $28,454 with respect to California Money Fund and $26,608 with respect to New York Money Fund. For the year ended October 31, 2002, certain portfolios paid Service Organization fees to affiliates of BIMC in the amounts as follows: $9,413,370 with respect to TempFund, $1,629,284 with respect to FedFund, and $7,770 with respect to MuniFund. (C) Capital Shares The Company's Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (shares) in the Company and to classify or reclassify any unissued shares into one or more additional classes of shares. Because the Portfolios have each sold and redeemed shares only at a constant net asset value of $1.00 per share, the number of shares represented by such sales, acquisitions, reinvestments and redemptions is the same as the dollar amounts shown below for such transactions. 50 Notes to Financial Statements (Continued) Transactions in capital shares for each period were as follows:
TEMPFUND PORTFOLIO -------------------------------------- YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ------------------- ----------------- Shares sold: Institutional Shares.................... $ 320,329,757,727 $ 291,136,390,458 Dollar Shares........................... 39,234,740,356 42,993,927,492 Cash Management Shares.................. 248,094,854 278,044,782 Cash Reserve Shares..................... 24,422,274 80,359,252 Administration Shares................... 154,263 -- Bear Stearns Shares..................... 48,354,071 -- Shares issued in reinvestment of dividends: Institutional Shares.................... 225,390,564 426,689,861 Dollar Shares........................... 6,172,161 15,721,595 Cash Management Shares.................. 275,905 485,338 Cash Reserve Shares..................... 3,115,566 10,739,195 Administration Shares................... 439 -- Bear Stearns Shares..................... 44,475 -- Shares redeemed: Institutional Shares.................... (326,832,864,751) (281,276,586,327) Dollar Shares........................... (40,608,515,754) (38,147,754,956) Cash Management Shares.................. (241,272,061) (250,730,743) Cash Reserve Shares..................... (57,241,521) (105,319,161) Administration Shares................... (30,230) -- Bear Stearns Shares..................... (25,681,761) -- ------------------- ----------------- Net increase (decrease).................... $ (7,645,083,423) $ 15,161,966,786 =================== =================
FEDFUND PORTFOLIO -------------------------------------- YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 -------------------- ---------------- Shares sold: Institutional Shares.................... $ 18,339,130,376 $ 11,947,448,243 Dollar Shares........................... 10,103,298,229 7,657,470,924 Bear Stearns Shares..................... 8,279,194 -- Shares issued in reinvestment of dividends: Institutional Shares.................... 10,933,307 18,459,433 Dollar Shares........................... 126,269 298,339 Bear Stearns Shares..................... 9,331 -- Shares redeemed: Institutional Shares.................... (18,079,562,829) (11,681,659,188) Dollar Shares........................... (10,281,928,162) (7,060,140,176) Bear Stearns Shares..................... (5,560,998) -- -------------------- ---------------- Net increase............................... $ 94,724,717 $ 881,877,575 ==================== ================
51 Notes to Financial Statements (Continued)
MUNIFUND PORTFOLIO -------------------------------- YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ---------------- ---------------- Shares sold: Institutional Shares.................... $ 5,677,842,960 $ 6,147,675,424 Dollar Shares........................... 315,683,136 243,871,021 Cash Management Shares.................. 36,581,859 25,738,407 Cash Reserve Shares..................... 1,830,434 7,313,940 Administration Shares................... 31,749,257 -- Bear Stearns Shares..................... 14,167,527 -- Shares issued in reinvestment of dividends: Institutional Shares.................... 2,026,277 2,085,368 Dollar Shares........................... 471,373 1,010,967 Cash Management Shares.................. -- -- Cash Reserve Shares..................... 116,882 429,907 Administration Shares................... -- -- Bear Stearns Shares..................... 3,426 -- Shares redeemed: Institutional Shares.................... (5,331,566,467) (6,066,755,393) Dollar Shares........................... (312,627,339) (237,513,350) Cash Management Shares.................. (30,147,858) (24,609,069) Cash Reserve Shares..................... (5,408,236) (12,807,175) Administration Shares................... (18,698,109) -- Bear Stearns Shares..................... (7,955,746) -- --------------- --------------- Net increase............................... $ 374,069,376 $ 86,440,047 =============== ===============
CALIFORNIA MONEY FUND PORTFOLIO -------------------------------- YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ---------------- ---------------- Shares sold: Institutional Shares.................... $ 1,988,548,366 $ 2,308,153,711 Dollar Shares........................... 50,549,316 52,583,491 Bear Stearns Shares..................... 1,796,081 -- Shares issued in reinvestment of dividends: Institutional Shares.................... 200,341 323,172 Dollar Shares........................... 10,605 -- Bear Stearns Shares..................... 608 -- Shares redeemed: Institutional Shares.................... (2,075,270,946) (2,341,607,368) Dollar Shares........................... (48,099,082) (35,333,586) Bear Stearns Shares..................... (1,129,139) -- --------------- --------------- Net decrease............................... $ (83,393,850) $ (15,880,580) =============== ===============
52 Notes to Financial Statements (Continued)
NEW YORK MONEY FUND PORTFOLIO -------------------------------- YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ---------------- ---------------- Shares sold: Institutional Shares.................... $ 1,728,948,642 $ 2,010,283,403 Dollar Shares........................... 11,490,672 9,063,686 Bear Stearns Shares..................... 59,254,425 -- Shares issued in reinvestment of dividends: Institutional Shares.................... 113,234 123,729 Dollar Shares........................... 46,071 65,059 Bear Stearns Shares..................... 22,182 -- Shares redeemed: Institutional Shares.................... (1,736,974,356) (1,942,615,167) Dollar Shares........................... (10,716,044) (6,880,589) Bear Stearns Shares..................... (42,279,717) -- --------------- --------------- Net increase............................... $ 9,905,109 $ 70,040,121 =============== ===============
On October 31, 2002, one shareholder held approximately 13% of the outstanding shares of TempFund, two shareholders held approximately 47% of FedFund, one shareholder held approximately 15% of MuniFund, one shareholder held approximately 23% of California Money Fund and three shareholders held approximately 70% of New York Money Fund. Some of the shareholders are comprised of omnibus accounts, which are held on behalf of several individual shareholders. (D) At October 31, 2002, net assets consisted of :
TEMPFUND MUNIFUND PORTFOLIO PORTFOLIO ----------------------- --------------------- Paid-in capital.............................. $ 24,447,954,358 $ 1,150,809,312 Accumulated net realized loss on security transactions............................... (468,456) (31,029) ----------------------- --------------------- Net Assets................................ $ 24,447,485,902 $ 1,150,778,283 ======================= ===================== FEDFUND CALIFORNIA MONEY NEW YORK MONEY PORTFOLIO FUND PORTFOLIO FUND PORTFOLIO ----------------------- --------------------- ---------------- Paid-in capital.............................. $ 2,593,546,243 $ 486,746,952 $383,791,214 Accumulated net realized loss on security transactions............................... (25,963) (76,526) (1,390) ----------------------- --------------------- ---------------- Net Assets................................ $ 2,593,520,280 $ 486,670,426 $383,789,824 ======================= ===================== ================
(E) Federal Tax Information No provision is made for Federal taxes as it is the Company's intention to have each portfolio continue to qualify for and elect the tax treatment applicable to regulated investment companies under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to its shareholders which will be sufficient to relieve it from all or substantially all federal income and excise taxes. Short-term capital gain distributions that are reported in the Statement of Changes in Net 53 Notes to Financial Statements (Concluded) Assets are reported as ordinary income for Federal tax purposes. There were no long-term capital gain distributions for the year ended October 31, 2002. Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. Federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital or accumulated net realized gain, as appropriate, in the period that the differences arise. As of October 31, 2002, the components of distributable earnings/(accumulated losses) were as follows:
UNDISTRIBUTED UNDISTRIBUTED CAPITAL TAX-FREE ORDINARY LOSS INCOME INCOME CARRYFORWARDS ------------- ------------- ------------- TempFund Portfolio -- $34,933,165 $(468,456) FedFund Portfolio -- 3,463,929 (25,963) MuniFund Portfolio $1,479,431 -- (31,029) California Money Fund Portfolio 617,961 -- (76,526) New York Money Fund Portfolio 469,976 -- (1,390)
At October 31, 2002, the Portfolios had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:
Expiring October 31 -------------------------------------------------------------------- 2003 2004 2005 2006 2007 2008 2009 2010 Total ---- ------ ------- ------ ------- ------- ------- -------- -------- TempFund Portfolio -- -- -- -- -- -- -- $468,456 $468,456 FedFund Portfolio -- $2,632 $23,331 -- -- -- -- -- 25,963 MuniFund Portfolio -- -- -- -- $17,276 $13,753 -- -- 31,029 California Money Fund Portfolio -- -- 10,699 -- -- -- $65,827 -- 76,526 New York Money Fund Portfolio -- -- -- $1,390 -- -- -- -- 1,390
54 Report of Independent Accountants To the Board of Trustees and Shareholders of BlackRock Provident Institutional Funds In our opinion, the accompanying statements of net assets 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 TempFund, FedFund, MuniFund, California Money Fund and New York Money Fund (portfolios of BlackRock Provident Institutional Funds, hereafter referred to as "BPIF") at October 31, 2002, the results of each of their operations for the year then ended, the changes in each of their net assets for the two years in the period then ended and the financial highlights for the three years and eleven months in the period ended October 31,1999 (for MuniFund) and for each of the periods presented (for TempFund, FedFund, California Money Fund and New York Money Fund), in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of BPIF'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 auditing standards generally accepted in the United States of America, 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 October 31, 2002 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights of the two years in the period ended November 30, 1998 of MuniFund was audited by other independent accountants whose report dated January 8, 1999 expressed an unqualified opinion on those statements. PricewaterhouseCoopers LLP Philadelphia, PA 19103 December 16, 2002 55 BLACKROCK PROVIDENT INSTITUTIONAL FUNDS FUND MANAGEMENT Information pertaining to the Trustees and officers of the trust is set forth below. The statement of additional information (SAI) includes additional information about the Trustees and is available without charge, upon request, by calling 1-800-821-7432.
---------------------------------------------------------------------------------------------------------------- NAME, ADDRESS POSITION(S) TERM OF PRINCIPAL OCCUPATION(S) NUMBER OF AND AGE/1/ HELD WITH TRUST OFFICE DURING PAST 5 YEARS PORTFOLIOS AND LENGTH IN FUND OF TIME COMPLEX SERVED/2/ OVERSEEN BY TRUSTEE/3/ ---------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEE ----------------------------------------------------------------------------------------------------------------------------------- Ralph L. Schlosstein/4/ Trustee, 1 year President and Director, BlackRock, Inc.; 54 Age: 51 Chairman Trustee: Visiting Board of Overseers of and John F. Kennedy School of Government President of Harvard University; Financial Institutions Center of The Wharton School of the University of Pennsylvania; Trinity School; New Visions for Public Education. ---------------------------------------------------------------------------------------------------------------- DISINTERESTED TRUSTEES ----------------------------------------------------------------------------------------------------------------------------------- G. Nicholas Beckwith, III Trustee 3 years President and Chief Executive Officer, 10 Age: 57 Beckwith Machinery Company; Chairman of the Board of Directors, University of Pittsburgh Medical Center Health System; Board of Visitors, University of Pittsburgh School of Medicine; Board of Directors, Shadyside Hospital Foundation; Beckwith Institute for Innovation in Patient Care; UPMC Rehabilitation Hospital; Brown University's Corporation Committee on Biomedical Affairs; Trustee: Shady Side Academy; Claude Worthington Benedum Foundation; Chatham College; University of Pittsburgh. ---------------------------------------------------------------------------------------------------------------- Jerrold B. Harris Trustee 3 years Until September 1, 1999, President and 10 Age: 60 Chief Executive Officer, VWR Scientific Products Corp.; Trustee, Ursinus College. ---------------------------------------------------------------------------------------------------------------- Rodney D. Johnson Trustee 3 years President, Fairmont Capital Advisors, 10 Age: 61 Inc. ---------------------------------------------------------------------------------------------------------------- Joseph P. Platt, Jr. Trustee 3 years Partner, Amarna Partners (private 10 Age: 55 investment company); formerly, a Director and Executive Vice President of Johnson & Higgins. ---------------------------------------------------------------------------------------------------------------- Robert C. Robb, Jr. Trustee 3 years Partner, Lewis, Eckert, Robb & 10 Age: 57 Company (management and financial consulting firm); Trustee, EQK Realty Investors; Director, Tamaqua Cable Products Company; Director, Brynwood Partners; former Director, PNC Bank. ---------------------------------------------------------------------------------------------------------------- Kenneth L. Urish Trustee 3 years Managing Partner, Urish Popeck & Co. 10 Age: 52 LLC (certified public accountants and consultants). ----------------------------------------------------------------------------------------------------------------
----------------------------------------------- NAME, ADDRESS OTHER DIRECTORSHIPS AND AGE/1/ HELD BY TRUSTEE ----------------------------------------------- INTERESTED TRUSTEE ----------------------------------------------------------------------------------------------------------------------------------- Ralph L. Schlosstein/4/ Director, Age: 51 BlackRock Family of Closed- End Funds (44 portfolios). ----------------------------------------------- DISINTERESTED TRUSTEES ----------------------------------------------------------------------------------------------------------------------------------- G. Nicholas Beckwith, III Age: 57 ----------------------------------------------- Jerrold B. Harris Age: 60 ----------------------------------------------- Rodney D. Johnson Age: 61 ----------------------------------------------- Joseph P. Platt, Jr. Age: 55 ----------------------------------------------- Robert C. Robb, Jr. Age: 57 ----------------------------------------------- Kenneth L. Urish Age: 52 -----------------------------------------------
56 BLACKROCK PROVIDENT INSTITUTIONAL FUNDS FUND MANAGEMENT (CONCLUDED)
------------------------------------------------------------------------------------------------------------------------------ NAME, ADDRESS POSITION(S) TERM OF PRINCIPAL OCCUPATION(S) NUMBER OF OTHER DIRECTORSHIPS AND AGE/1/ HELD WITH TRUST OFFICE DURING PAST 5 YEARS PORTFOLIOS HELD BY TRUSTEE AND LENGTH IN FUND OF TIME COMPLEX SERVED/2/ OVERSEEN BY TRUSTEE/3/ ------------------------------------------------------------------------------------------------------------------------------ Frederick W. Winter Trustee 3 years Dean, Joseph M. Katz School of 10 Director, Alkon Age: 58 Business--University of Pittsburgh; Corporation formerly, Dean, School of (1992-present). Management--State University of New York at Buffalo (1994-1997); former Director, Rand Capital (1996-1997); former Director, Bell Sports (1991- 1998). ------------------------------------------------------------------------------------------------------------------------------ OFFICERS WHO ARE NOT TRUSTEES ------------------------------------------------------------------------------------------------------------------------------ Anne Ackerley Anti-Money 1 month Managing Director, BlackRock Advisors, Inc. since May 2000; First Vice BlackRock, Inc. Laundering President and Operating Officer, Mergers and Acquisitions Group (1997- 40 E. 52nd Street Compliance 2000), First Vice President and Operating Officer, Public Finance Group New York, NY 10022 Officer (1995-1997), and First Vice President, Emerging Markets Fixed Income Age: 40 Research (1994-1995), Merrill Lynch & Co. ------------------------------------------------------------------------------------------------------------------------------ Paul Audet Treasurer 1 year Managing Director and Chief Financial Officer, BlackRock, Inc. (since BlackRock, Inc. 1998); Treasurer, BlackRock Funds (since 2002); Senior Vice President, 40 East 52nd Street PNC Bank Corp. (1991-1998). New York, NY 10022 Age: 49 ------------------------------------------------------------------------------------------------------------------------------ Ellen L. Corson Assistant 1 year Vice President and Director of Mutual Fund Accounting and PFPC Inc. Treasurer Administration, PFPC Inc. (since November 1997); Assistant Vice 103 Bellevue Parkway President, PFPC Inc. (March 1997 to November 1997); Senior Wilmington, DE 19809 Accounting Officer, PFPC Inc. (March 1993 to March 1997). Age: 38 ------------------------------------------------------------------------------------------------------------------------------ W. Bruce McConnel Secretary 3 years Partner of the law firm of Drinker Biddle & Reath LLP, Philadelphia, Drinker Biddle & Pennsylvania. Reath LLP One Logan Square 18th & Cherry Streets Philadelphia, PA 19103-6996 Age: 59 ------------------------------------------------------------------------------------------------------------------------------
1. Each Trustee may be contacted by writing to the Trust, c/o BlackRock Institutional Management Corporation, Attn: Brian Kindelan, 100 Bellevue Parkway, Wilmington, DE 19809. 2. Each Trustee shall hold office until his respective successor has been duly elected and qualified. Each officer serves a one-year term. 3. The Fund Complex consists of all registered investment companies for which BlackRock Institutional Management Corporation, or its affiliates, serves as investment adviser. 4. Mr. Schlosstein is an "interested person" of the Trust, as that term is defined in the 1940 Act, because he is an officer of the Trust and owns securities of BlackRock, Inc., which is BIMC's parent. 57 Investment Adviser BlackRock Institutional Management Corporation Wilmington, Delaware 19809 Co-Administrator BlackRock Institutional Management Corporation Wilmington, Delaware 19809 Co-Administrator and Transfer Agent PFPC Inc. Wilmington, DE 19809 Distributor BlackRock Distributors, Inc. King of Prussia, Pennsylvania 19406 Custodian PFPC Trust Co. Philadelphia, Pennsylvania 19153 Counsel Drinker Biddle & Reath LLP Philadelphia, Pennsylvania 19103 Independent Accountants PricewaterhouseCoopers LLP Philadelphia, Pennsylvania 19103 This report is submitted for the general information of the shareholders of the Company. It is not authorized for distribution to prospective investors unless accompanied or preceded by effective prospectuses for each portfolio of the Company, which contain information concerning the investment policies of the portfolios as well as other pertinent information. Statements and other information contained in this report are as dated and subject to change.