Item 1. Business
UMB Bank, N.A., the principal executive offices of which are located in Kansas City, Missouri ("the Bank"), is trustee of three collective investment Trusts (collectively referred to herein as the "Funds" or singularly as a "Fund") that provide investment mediums for certain qualified retirement plans for which the Bank serves as trustee. The Funds are:
a. The Fund for Pooling Equity Investments of Employee Trusts (the "Pooled Equity Fund"), the primary investment objective of which is growth in the value of the units of participation in the Fund through investments in equity securities; b. The Fund for Pooling Debt Investments of Employee Trusts (the "Pooled Debt Fund"), the primary investment objective of which is the stability of the underlying assets through the investment in fixed income obligations and growth in the value of the units of participation in the Fund through reinvestment of the income from such obligations; c. The Pooled Income Fund for Employee Trusts (the "Pooled Income Fund") the primary investment objective of which is to provide a high degree of liquidity through the investment of short-term fixed income obligations with growth in the value of the units of participation in the Fund through reinvestment of the income from such obligations.
The Funds are operated under Section 18 of Regulation 9 of the Comptroller of Currency (12 C.F.R.9.18). The Trust Department of the Bank is responsible for the continuing supervision and evaluation of all investments for the Funds. All investment activities are subject to the policy making and reviewing authority of the Bank's Trust Policy Committee, which is composed of twelve members made up of Senior Management and outside Directors of the Bank.
The above description of the Registrant's business is qualified in its entirety by reference to the more detailed discussion set forth in the Registrant's registration statement on Form S-1 (Commission file no. 33-86470), as may be amended from time to time.
Item 2.
Item 2. Properties
Not applicable
Item 3.
Item 3. Legal Proceedings
None
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable - -------------------------------------------------------------------------------
PART II
Item 5.
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
There is no established public trading market for the units of participation in the Funds, and dividends are not paid on such units. On October 31, 2002 there were 161 holders of units of participation in the Fund for Pooling Equity Investments of Employee Trusts, 158 holders of units of participation in the Fund for Debt Investments of Employee Trusts, and 83 holders of units of participation in the Pooled Income Fund for Employees Trusts. The closing value of a unit of the Fund for Pooling Equity Investments of Employee Trusts, of the Fund for Pooling Debt Investments of Employee Trusts, and of the Pooled Income Fund for Employee Trusts were, respectively, $ 7.99, $9.51 and $ 6.69.
[Remainder of Page Intentionally Left Blank]
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Item 6.
Item 6. Selected Financial Data
* Per unit information has been adjusted to reflect a 10 for 1 unit split paid during the quarter ended April 30, 2000.
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Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following financial review presents management's discussion and analysis of the financial condition and results of operations of the Funds. This review highlights the material changes in the results of operations and statements of participants' interests for the period ended October 31, 2002. It should be read in conjunction with the accompanying financial statements, notes to financial statements and other financial statistics appearing elsewhere in this report. Results of operations for the periods in this review is not necessarily indicative of results to be attained during any future period.
Forward Looking Statements - -------------------------- Estimates and forward looking statements are included in this review and as such are subject to certain risks, uncertainties and assumptions that are beyond the Funds' ability to control or estimate precisely. Forward looking statements are based on current financial and economic data and management's expectations concerning future developments and their effects. Actual results and outcomes could differ materially from management's current expectations, and could cause future results to differ materially from those expressed in the forward looking statements. Factors that could cause material differences in actual operating results include, but are not limited to, the impact of competition; changes in pricing, and interest rates; changes in legal or regulatory requirements or restrictions; changes in U.S. or international economic or political conditions, such as inflation or fluctuation in interest or foreign exchange rates; or changes in values of securities traded in the equity markets; and disruptions in operations due to failures of telecommunications systems, utility systems, security clearing systems, or other elements of the financial industry infrastructure. While the Funds periodically reassesses material trends and uncertainties affecting the Funds' results of operations and financial condition in connection with the preparation of management's discussion and analysis contained in the Funds' annual and quarterly reports, the Funds do not intend to review or revise any particular forward-looking statement referenced herein in light of future events.
POOLED FUND COMMENTARY The three collective investment funds included in this report are for the use of "Qualified Retirement Trusts". Participating accounts benefit from this large concentration of capital by receiving constant investment attention, lower brokerage commissions on large trades, and broad diversification which reduces risk and enhances investment opportunities. Investment programs to meet the objectives of each individual trust can be designed by adjusting the ratio of participation in the various funds.
POOLED EQUITY FUND The Pooled Equity Fund lagged the Standard & Poors 500 by 25 basis points. The major drag on the Fund's performance was the telecommunications and technology sectors. The utility sector was also a drag, driven by the energy trading operations buried in normally stable businesses. Usually the healthcare sector has outstanding performance in a poor market, but a number of patent expirations without major new drug approvals hurt pharmaceutical earnings. The consumer staples did relatively well. The consumer discretionary sector, lead by consumer spending which was stimulated by low interest rates, held up fairly well.
Over the year the portfolio was refocused to give the Pooled Equity Fund better exposure to a potential economic recovery. In the energy sector we sold Halliburton and bought Noble Corporation. In technology, the Fund sold Computer Sciences, Altera, Tellabs and Texas Instruments and bought Electronic Data Systems. In the Utilities we sold Aquila, and Quest. In financial services the Fund sold Lincoln National and bought A J Gallagher, American International Group, American Express, Marsh & McLennan and State Street. In the consumer sector the Fund sold McDonalds and bought Brinker International, TJX Companies and Omnicom. In the Basic materials sector we sold Brush Engineered Materials. Finally, in industrials the Fund bought MMM and Dover Corp.
POOLED DEBT FUND The FOMC continued their aggressive easy money campaign, which ultimately culminated in a drop of the Fed Funds rate to 1.25%. This led to a powerful drop in interest rates, and strong total return numbers for bond investors.
The Pooled Debt Fund focused on credit risk, driven by the desire for quality. Quality is defined in terms of multiple factors that address leverage, liquidity and earnings stability. The Pooled Debt Fund uses an equity analysis in assessing the appropriateness of corporate bonds for the Fund. This integrated analytical approach helped trigger early warnings on most of the sectors that spawned the "fallen angels", which caused so much damage in fixed income portfolios last year.
The Pooled Debt Fund exited long-distance, technology and most utilities in early 2001, and those moves helped add incremental relative returns throughout 2002. The decision was made to swap credit risk for convexity risk, by overweighting mortgage holdings. The Pooled Debt Fund has moved to a short duration posture and will seek to further increase mortgage holdings in preparation for the potential of rising rates.
Overall, the higher quality profile was the primary driver of returns in 2002. At the October month-end, the Pooled Debt Fund generated a 1-year return of 6.97%, placing the fund ahead of the Lehman Intermediate Gov/Credit Index, which finished at 5.91% for the same time period.
POOLED INCOME FUND The Pooled Income Fund continued to maintain a high-quality focus, seeking to provide preservation of principal, combined with reasonable returns for short-term (cash equivalent) investors. Within the short-term market, there was a steady reduction in issuance by top-quality commercial paper issuers. Consequently, the Fund's holdings of agency discount notes gradually increased as the year proceeded.
The Pooled Income Fund finished October with a 1-year return of 1.83%, versus a 1.85% return for the market, as represented by 90-day T-bill returns. Our 1.83% return was well above the money market average, as represented by the Lipper Money Market Fund Index, which returned 1.48% for the same time period.
The Pooled Income Fund will maintain a high-quality bias and focus on preservation of principal.
Item 7A.
Item 7A. Quantitative and Qualitative Analysis of Financial Condition and Results of Operation
All of the instruments held by the Funds are entered into for trading purposes. The Funds' trading portfolios are directly effected by changes in market rates/prices. The risk is the loss of value in the shares of the Funds' arising from adverse changes in the value of the trading portfolios.
The Pooled Equity Fund invests in equity securities. Equity Securities are subject to market, economic, and business risks that will cause their prices to fluctuate over time. The Pooled Equity Fund portfolio is quoted at market prices and the market value of the Fund should fluctuate at a rate similar to the market as represented by the Standard and Poor's 500 Index. Differences from the index may be caused by differences of the allocations of stocks among various industries and by the value of the individual stocks with the portfolio or the index.
The Pooled Debt Fund is invested in debt securities. Yields and principal values of debt securities will fluctuate. Generally, values of debt securities change inversely with interest rates. As interest rates go up, the value of the debt securities tends to go down. As a result, the value of the funds may go down. Furthermore, these fluctuations tend to increase as a bond's time to maturity increases, so a longer-term bond will decrease more for a given increase in interest rates than a shorter-term bond.
Using a rate shock analysis of the securities in the Pooled Debt Fund on October 31, 2002, an immediate 100 and 200 basis point gain in interest rates would decrease the value 4.33% and 8.87% respectively in the portfolio value. An immediate 100 and 200 basis point decrease in interest rates would cause a 3.32% and 6.75% increase respectively in the value of the portfolio.
An issuer of fixed-income securities may be unable to make interest payments and repay principal. Changes in an issuer's financial strength or in a security's credit rating may affect a security's value and, thus, impact a Fund performance.
The total current return on the Pooled Income Fund as of October 31, 2002 was 1.62%. Using a rate shock analysis of the securities in the Pooled Income Fund on October 31, 2002, an immediate 100 and 200 basis point gain in interest rates would result in a 1.58% and 1.54% return respectively in the portfolio value. An immediate 100 and 200 basis point decrease in interest rates would result in a 1.66% and 1.70% total return of the portfolio.
Item 8.
Item 8. Financial Statements and Supplementary Data
The financial statements are attached hereto and filed as part of this report.
Item 9.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Statements.
None - --------------------------------------------------------------------------------
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant
The Registrant has no directors or executive officers. The Bank is trustee and certain officers and employees of the Bank devote a portion of their time to managing the Funds.
Item 11.
Item 11. Executive Compensation
Not applicable
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management
Not applicable
Item 13.
Item 13. Certain Relationships and Related Transactions
Not applicable - --------------------------------------------------------------------------------
PART IV
Item 14.
Item 14. Exhibits, Financial Statement Schedule and Reports on Form 8-K
a. Financial Statements, Financial Statement Schedules and Exhibits.
(1) Financial Statements: The financial statements filed as a part of this report are set forth on the index to the Audited Financial Statements and Other Financial Information on page of this report.
- -------------------------------------------------------------------------------- (2) Financial Statement Schedules: Not applicable
- -------------------------------------------------------------------------------- (3) Financial Statement Exhibits: All exhibits incorporated by reference herein are incorporated pursuant to Rule 12b-32 under the Securities Exchange Act of 1934, as amended.
- -------------------------------------------------------------------------------- (3) Financial Statement Exhibits: All exhibits incorporated by reference herein are incorporated pursuant to Rule 12b-32 under the Securities Exchange Act of 1934, as amended.
- -------------------------------------------------------------------------------- (2) Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession Not applicable
- -------------------------------------------------------------------------------- (3) Articles of Incorporation and Bylaws Not applicable
- -------------------------------------------------------------------------------- (4) Instruments Defining the Rights of Security Holders, Including Indentures 4.1 The UMB Bank, N.A., Master Plan and Trust for Self-Employed Individuals, as amended on January 1, 1991, is attached as Exhibit 4.1 to post-effective amendment no. 5 to the Registrant's registration statements on Form S-1 (Commission file no. 33-27170) and is incorporated herein by reference as Exhibit 4.2. 4.2 The Plan and Declaration of Trust for the Fund for Pooling Equity Investments of Employee Trusts, as amended
on October 31, 1995, is attached as Exhibit 4.2 to Registrant's Form 10-K for the year ended October 31, 1995, and is incorporated herein by reference as Exhibit 4.3. 4.3 The Plan and Declaration of Trust for the Fund for Pooling Debt. Investments of Employee Trusts, as amended on October 31, 1995, is attached as Exhibit 4.3 to Registrant's Form 10-K for the year ended October 31, 1995, and is incorporated herein by reference as Exhibit 4.3.
- -------------------------------------------------------------------------------- (9) Voting Trust Agreement. Not applicable
- -------------------------------------------------------------------------------- (10) Material Contracts Not applicable
- -------------------------------------------------------------------------------- (11) Statement regarding Computation of Per Share Earnings Not applicable
- -------------------------------------------------------------------------------- (12) Statement Regarding Computation of Ratios Not applicable
- -------------------------------------------------------------------------------- (13) Annual Report to Security Holders, Form 10-Q or Quarterly Report to Security Holders Not applicable
- -------------------------------------------------------------------------------- (16) Letter Regarding Change in Certifying Accountants Not applicable
- -------------------------------------------------------------------------------- (16) Letter Regarding Change in Certifying Accountants Not applicable
- -------------------------------------------------------------------------------- (16) Letter Regarding Change in Certifying Accountants Not applicable
- -------------------------------------------------------------------------------- (18) Letter Regarding Change in Accounting Principles Not applicable
- -------------------------------------------------------------------------------- (21) Subsidiaries of Registrant Not applicable
- -------------------------------------------------------------------------------- (22) Published Report Regarding Matters Submitted to Vote of Security Holders Not applicable
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(23) Consents of Experts and Counsel Not applicable
- -------------------------------------------------------------------------------- (24) Power of Attorney Not applicable
- -------------------------------------------------------------------------------- (27) Financial Data Schedule Not applicable
- -------------------------------------------------------------------------------- (28) Information from Reports Furnished to State Insurance Regulatory Authorities. Not applicable
- -------------------------------------------------------------------------------- (99) Additional Exhibits Not applicable
b. Reports Filed on Form 8-K.
No report Form 8-K was filed by the Registrant during the last quarter of the period covered by this report. - --------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
THE COLLECTIVE INVESTMENT TRUSTS By UMB Bank, n.a. As Trustee Date: February 13, 2003 /s/ R. Crosby Kemper III - --------------------------------------------- R. Crosby Kemper III Chief Executive Officer
Date: February 13, 2003 /s/ Daniel C. Stevens - --------------------------------------------- Daniel C. Stevens Chief Financial Officer
- -------------------------------------------------------------------------------- I, R. Crosby Kemper, III, certify that:
1. I have reviewed this Report on Form 10-K for the Collective Investment Trust of which UMB Bank, n.a. is Trustee.
2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report.
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in the Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a. designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
b. evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing of this annual report (the "Evaluation Date"); and
c. presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Date: February 13, 2003
/s/ R. Crosby Kemper, III ------------------------- Chief Executive Officer
I Daniel C. Stevens, certify that:
1. I have reviewed this Report on Form 10-K for the Collective Investment Trust of which UMB Bank, n.a. is Trustee.
2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report.
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in the Exchange Act Rules 13a-14 and 15d-14) for the registrant and have;
a. designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared:
b. evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing of this annual report (the "Evaluation Date"); and
c. presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Date: February 13, 2003
/s/ Daniel C. Stevens ----------------------- Chief Financial Officer
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FINANCIAL STATEMENTS
Report of Independent Accountants Fund for Pooling Equity Investments of Employee Trusts Statements of Assets and Liabilities as of October 31, 2001 and 2002 Statements of Investments Held as of October 31, 2001 and 2002 Statements of Operations for the years ended October 31, 2000, 2001 and 2002 Statements of Participants' Interest for the years ended October 31, 2000, 2001 and 2002 Fund for Pooling Debt Investments of Employee Trusts Statements of Assets and Liabilities as of October 31, 2001 and 2002 Statements of Investments Held as of October 31, 2001 and 2002 Statements of Operations for the years ended October 31, 2000, 2001 and 2002 Statements of Participants' Interest for the years ended October 31, 2000, 2001 and 2002 Pooled Income Fund for Employee Trusts Statements of Assets and Liabilities as of October 31, 2001 and 2002 Statements of Investments Held as of October 31, 2001 and 2002 Statements of Operations for the years ended October 31, 2000, 2001 and 2002 Statements of Participants' Interest for the years ended October 31, 2000, 2001 and 2002 Notes to Financial Statements
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Independent Accountants' Report
Board of Directors UMB Bank, n.a. Kansas City, Missouri
We have audited the accompanying statements of assets and liabilities of the Fund for Pooling Equity Investments of Employee Trusts, the Fund for Pooling Debt Investments of Employee Trusts and the Pooled Income Fund for Employee Trusts of UMB Bank, n.a. (the Funds), including the statements of investments held, as of October 31, 2002 and 2001, and the related statements of operations and participants' interest for each of the three years in the period ended October 31, 2002. These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards 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. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fund for Pooling Equity Investments of Employee Trusts, the Fund for Pooling Debt Investments of Employee Trusts and the Pooled Income Fund for Employee Trusts of UMB Bank, n.a. as of October 31, 2002 and 2001, and the results of their operations and the changes in their participants' interest for each of the three years in the period ended October 31, 2002, in conformity with accounting principles generally accepted in the United States of America.
/s/ BKD, LLP
Kansas City, Missouri November 20, 2002 - --------------------------------------------------------------------------------
UMB BANK, n.a. FUND FOR POOLING EQUITY INVESTMENTS OF EMPLOYEE TRUSTS STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2002 AND 2001
2002 2001 ASSETS Cost Market Cost Market Investments: Common stocks $57,982,818 $48,928,862 $64,973,990 $60,418,946 Commercial paper 12,502,743 12,502,743 Short-term money market fund 10,737,047 10,737,047 2,734,775 2,734,775 --------------------------------------------------- $68,719,865 59,665,909 $80,211,508 75,656,464 ---------------------------------------------------
Interest and dividends receivable 103,148 89,083 ---------------------------------------------- 59,769,057 75,745,547 ----------------------------------------------
LIABILITIES Disbursements in excess of demand deposit cash 10,970 7,950 Audit fee payable 11,619 5,481 ------------ ------------ 22,589 13,791 ------------ ------------
$ 59,746,468 $ 75,731,756 ============ ============
PARTICIPANTS INTEREST, Equivalent to $7.99 per unit on 7,479,229 units outstanding in 2002 and $9.44 per unit on 8,022,153 units outstanding in 2001.
==================================
See Notes to Financial Statements
UMB BANK, n.a. FUND FOR POOLING EQUITY INVESTMENTS OF EMPLOYEE TRUSTS STATEMENT OF INVESTMENTS HELD OCTOBER 31, 2002
Number of Cost Market Shares or Principal Amount COMMON STOCKS - 82.0%
CONSUMER DISCRETIONARY - 8.9%
ADVERTISING: OMNICOM GROUP INC. 11,500 $660,918 $ 662,745 ----------------------------
HOTELS, RESTAURANTS AND LEISURE: BRINKER INTERNATIONAL, INC. 30,000 848,754 851,700 ----------------------------
MEDIA: KNIGHT-RIDDER, INC. 21,000 1,099,988 1,263,780 ----------------------------
RETAILING: TJX CORP. 62,800 1,245,478 1,288,656 TARGET CORP. 41,000 1,329,831 1,234,920 ---------------------------- TOTAL RETAILING 2,575,309 2,523,576
TOTAL CONSUMER DISCRETIONARY 5,184,969 5,301,801 ----------------------------
CONSUMER STAPLES - 11.3%
HOUSEHOLD AND PERSONAL PRODUCTS: KIMBERLY-CLARK CORP. 40,500 2,206,295 2,085,750 PROCTOR & GAMBLE CO. 19,000 1,245,606 1,680,550 ---------------------------- TOTAL HOUSEHOLD AND PERSONAL PRODUCTS 3,451,901 3,766,300 ----------------------------
FOOD, BEVERAGE AND TOBACCO PEPSICO, INC. 66,800 2,264,854 2,945,880 ----------------------------
TOTAL CONSUMER STAPLES 5,716,755 6,712,180 ----------------------------
ENERGY - 7.2%
ENERGY: CONOCOPHILLIPS 39,000 1,598,953 1,891,500 KERR-MCGEE CORP. 31,000 1,174,960 1,348,500 MARATHON OIL CORP 52,000 880,257 1,086,800 ---------------------------- TOTAL ENERGY 3,654,170 4,326,800 ----------------------------
FINANCIALS - 14.4% BANKS: FIRSTMERIT CORP. 94,000 2,204,971 2,147,900 STATE STREET CORP. 36,000 1,349,374 1,489,320 U.S. BANCORP 40,000 966,608 843,600 ---------------------------- TOTAL BANKS 4,520,953 4,480,820 ----------------------------
CREDIT CARDS AMERICAN EXPRESS COMPANY 20,000 788,400 727,400 ----------------------------
DIVERSIFIED FINANCIALS: MERRILL LYNCH & CO., INC. 32,000 1,861,335 1,214,400 ----------------------------
INSURANCE: AMERICAN INTERNATIONAL GROUP 14,000 1,126,914 875,700 ARTHER J. GALLAGHER & CO. 22,000 660,479 590,040 MARSH & MCLENNAN COMPANIES, INC. 14,800 821,770 691,308 ---------------------------- TOTAL INSURANCE 2,609,163 2,157,048 ----------------------------
TOTAL FINANCIALS 9,779,851 8,579,668 ----------------------------
HEALTH CARE - 6.8%
HEALTH CARE EQUIPMENT AND SERVICES: BAXTER INTERNATIONAL, INC. 24,000 112,699 600,480 ----------------------------
PHARMACEUTICALS AND BIOTECHNOLOGY: AMGEN, INC. 17,800 1,218,282 828,768 BRISTOL-MYERS SQUIBB CO. 35,000 2,296,426 861,350 GENENTECH, INC 18,600 1,297,161 634,074 PFIZER, INC. 35,000 1,421,700 1,111,950 ---------------------------- TOTAL PHARMACEUTICALS AND BIOTECHNOLOGY 6,233,569 3,436,142 ----------------------------
TOTAL HEALTH CARE 6,346,268 4,036,622 ----------------------------
INDUSTRIALS - 8.8%
CAPITAL GOODS: 3M CO. 10,000 1,232,741 1,269,400 DOVER CORP. 30,000 1,242,048 752,400 EMERSON ELECTRIC CO. 26,000 1,693,770 1,252,680 MOLEX, INC. 45,000 1,349,309 1,188,450 NOBLE CORP. 25,000 910,228 808,000 ---------------------------- TOTAL INDUSTRIALS 6,428,096 5,270,930 ----------------------------
INFORMATION TECHNOLOGY - 13.6%
SOFTWARE AND SERVICES: ELECTRONIC DATA SYSTEMS CORP. 27,000 968,655 406,620 MICROSOFT CORP. 25,000 2,155,517 1,336,750 ORACLE CORP. 58,000 1,652,241 591,020 ---------------------------- TOTAL SOFTWARE AND SERVICES 4,776,413 2,334,390 ----------------------------
TECHNOLOGY, HARDWARE AND EQUIPMENT: CISCO SYSTEMS, INC. 36,000 389,625 402,480 DELL COMPUTER CORP. 28,700 1,161,344 821,107 INTEL CORP. 70,000 2,619,395 1,211,000 INTERNATIONAL BUSINESS MACHINES CORP. 20,000 2,302,790 1,578,800 NOKIA OYJ 41,200 1,113,805 684,744 ----------------------------
TOTAL TECHNOLOGY, HARDWARE AND EQUIPMENT 7,586,959 4,698,131 ----------------------------
TECHNOLOGY, HARDWARE, TOOLS AND EQUIPMENT: HARRIS CORP. 40,000 1,039,803 1,055,200 ----------------------------
TOTAL INFORMATION TECHNOLOGY 13,403,175 8,087,721 ----------------------------
MATERIALS - 4.6% MATERIALS: ENGELHARD CORP. 72,000 1,473,061 1,594,800 WEYERHAEUSER, INC. 26,000 475,292 1,177,800 ---------------------------- TOTAL MATERIALS 1,948,353 2,772,600 ----------------------------
TELECOMMUNICATION SERVICES - 3.4%
TELECOMMUNICATION SERVICES: BELLSOUTH CORP. 35,000 1,553,752 915,250 SBC COMMUNICATIONS, INC. 44,000 2,252,466 1,129,040 ---------------------------- TOTAL TELECOMMUNICATIONS SERVICES 3,806,218 2,044,290 ----------------------------
UTILITIES - 3.0% UTILITIES: ENTERGY CORP. 30,000 669,000 1,322,700 TXU CORP. 33,000 1,045,963 473,550 ---------------------------- TOTAL UTILITIES 1,714,973 1,796,250 ----------------------------
TOTAL COMMON STOCKS 57,982,818 48,928,862 ----------------------------
SHORT-TERM MONEY MARKET FUND - 18.0%
SHORT-TERM MONEY MARKET FUND OF UMB BANK, n.a. 10,737,047 10,737,047 10,737,047 ----------------------------
TOTAL INVESTMENTS HELD $ 68,719,865 $ 59,665,909 ============================
See Notes to Financial Statements
UMB BANK, n.a. FUND FOR POOLING EQUITY INVESTMENTS OF EMPLOYEE TRUSTS STATEMENT OF INVESTMENTS HELD OCTOBER 31, 2001
Number of Cost Market Shares or Principal Amount COMMON STOCKS - 79.9%
CONSUMER DISCRETIONARY - 7.3%
HOTELS, RESTAURANTS AND LEISURE: MCDONALD'S CORP. 70,000 $ 2,765,150 $ 1,824,900 ----------------------------
MEDIA: KNIGHT-RIDDER, INC. 27,000 1,428,167 1,518,750 ----------------------------
RETAILING: TARGET CORP. 71,000 2,302,878 2,211,650 ----------------------------
TOTAL CONSUMER DISCRETIONARY 6,496,195 5,555,300 ----------------------------
CONSUMER STAPLES - 9.1%
HOUSEHOLD AND PERSONAL PRODUCTS: KIMBERLY-CLARK CORP. 40,500 2,206,295 2,248,155 PROCTOR & GAMBLE CO. 19,000 1,255,434 1,401,820 ---------------------------- TOTAL HOUSEHOLD AND PERSONAL PRODUCTS 3,461,729 3,649,975 ----------------------------
FOOD, BEVERAGE AND TOBACCO PEPSICO, INC. 66,800 2,264,854 3,253,828 ----------------------------
TOTAL CONSUMER STAPLES 5,726,583 6,903,803 ----------------------------
ENERGY - 8.7%
ENERGY: AQUILA, INC. 16,000 351,264 293,600 HALLIBURTON CO. 39,000 663,984 962,910 KERR-MCGEE CORP. 31,000 1,174,960 1,785,600 PHILLIPS PETROLEUM CO. 39,000 1,598,953 2,121,990 USX-MARATHON GROUP 52,000 880,257 1,434,680 ---------------------------- TOTAL ENERGY 4,669,418 6,598,780 ----------------------------
FINANCIALS - 7.9% BANKS: FIRSTMERIT CORP. 94,000 2,204,971 2,169,520 U.S. BANCORP 40,000 966,608 711,200 ---------------------------- TOTAL BANKS 3,171,579 2,880,720 ----------------------------
DIVERSIFIED FINANCIALS: MERRILL LYNCH & CO., INC. 16,000 1,057,544 699,360 ----------------------------
INSURANCE: LINCOLN NATIONAL CORP. - INDIANA 56,000 2,247,255 2,371,600 ----------------------------
TOTAL FINANCIALS 6,476,378 5,951,680 ----------------------------
HEALTH CARE - 8.7%
HEALTH CARE EQUIPMENT AND SERVICES: BAXTER INTERNATIONAL, INC. 24,000 112,699 1,160,880 ----------------------------
PHARMACEUTICALS AND BIOTECHNOLOGY: AMGEN, INC. 17,800 1,218,282 1,011,396 BRISTOL-MYERS SQUIBB CO. 35,000 2,296,426 1,870,750 GENENTECH, INC 18,600 1,297,161 971,850 PFIZER, INC. 35,000 1,421,700 1,466,500 ---------------------------- TOTAL PHARMACEUTICALS AND BIOTECHNOLOGY 6,233,569 5,320,496 ----------------------------
TOTAL HEALTH CARE 6,346,268 6,481,376 ----------------------------
INDUSTRIALS - 3.6%
CAPITAL GOODS: EMERSON ELECTRIC CO. 26,000 1,693,770 1,274,520 MOLEX, INC. 50,000 1,500,633 1,446,500 ---------------------------- TOTAL INDUSTRIALS 3,194,403 2,721,020 ----------------------------
INFORMATION TECHNOLOGY - 20.0% SOFTWARE AND SERVICES: COMPUTER SCIENCES CORP. 27,000 1,750,450 969,570 MICROSOFT CORP. 25,000 2,155,517 1,453,750 ORACLE CORP. 58,000 1,652,241 786,480 ---------------------------- TOTAL SOFTWARE AND SERVICES 5,558,208 3,209,800 ----------------------------
TECHNOLOGY, HARDWARE AND EQUIPMENT: ALTERA CORP. 41,000 1,882,980 828,200 CISCO SYSTEMS, INC. 36,000 389,625 609,120 DELL COMPUTER CORP. 28,700 1,161,344 688,226 INTEL CORP. 70,000 2,619,395 1,709,400 INTERNATIONAL BUSINESS MACHINES CORP. 20,000 2,302,790 2,161,400 NOKIA CP ADS PFD 41,200 1,113,805 845,012 TEXAS INSTRUMENTS, INC. 62,000 2,614,489 1,735,380 ----------------------------
TOTAL TECHNOLOGY, HARDWARE AND EQUIPMENT 12,084,428 8,576,738 ----------------------------
TECHNOLOGY, HARDWARE, TOOLS AND EQUIPMENT: HARRIS CORP. 82,000 2,200,483 2,810,960 TELLABS, INC. 38,600 1,559,441 526,890 ---------------------------- TOTAL TECHNOLOGY, HARDWARE, TOOLS AND EQUIPMENT 3,759,924 3,337,850 ----------------------------
TOTAL INFORMATION TECHNOLOGY 21,402,560 15,124,388 ----------------------------
MATERIALS - 5.9%
MATERIALS: BRUSH ENGINEERED METALS, INC. 56,700 719,250 581,175 ENGELHARD CORP. 100,000 2,078,662 2,618,000 WEYERHAEUSER, INC. 26,000 475,292 1,297,660 ---------------------------- TOTAL MATERIALS 3,273,204 4,496,835 ----------------------------
TELECOMMUNICATION SERVICES - 5.2%
TELECOMMUNICATION SERVICES: BELLSOUTH CORP. 50,000 2,219,645 1,850,000 QWEST COMMUNICATIONS INTERNATIONAL, INC. 29,398 1,201,897 380,704 SBC COMMUNICATIONS, INC. 44,000 2,252,466 1,676,840 ---------------------------- TOTAL TELECOMMUNICATIONS SERVICES 5,674,008 3,907,544 ----------------------------
UTILITIES - 3.5% UTILITIES: ENTERGY CORP. 30,000 669,000 1,165,500 TXU CORP. 33,000 1,045,973 1,512,720 ---------------------------- TOTAL UTILITIES 1,714,973 2,678,220 ----------------------------
TOTAL COMMON STOCKS 64,973,990 60,418,946 ----------------------------
COMMERCIAL PAPER - 16.5%
ABBOTT LABORATORIES, DUE 11/07/01 925,000 924,625 924,625 ALCOA, INC., DUE 11/07/01 550,000 549,778 549,778 AMERICAN INTERNATIONAL GROUP, INC., DUE 11/16/01 480,000 479,520 479,520 AMERICAN INTERNATIONAL GROUP, INC., DUE 11/19/01 50,000 499,397 499,397 COCA-COLA CO., DUE 11/16/01 1,175,000 1,173,806 1,173,806 DOW CHEMICAL CO., DUE 11/01/01 475,000 475,000 475,000 GANNETT CO., INC., DUE 11/02/01 575,000 574,960 574,960 GANNETT CO., INC., DUE 11/06/01 900,000 899,691 899,691 GANNETT CO., INC., DUE 11/09/01 262,000 261,862 261,862 GANNETT CO., INC., DUE 11/13/01 725,000 724,408 724,408 MERCK & CO., INC., DUE 11/09/01 1,000,000 999,453 999,453
ONEOK, INC., DUE 11/28/01 800,000 798,620 798,620 TEXACO, INC., DUE 11/27/01 695,000 693,851 693,851 UNITED TECHNOLOGIES CORP., DUE 11/14/01 650,000 649,425 649,425 WAL-MART STORES, INC., DUE 11/02/01 1,000,000 999,933 999,933 WAL-MART STORES, INC., DUE 11/05/02 750,000 749,799 749,799 WISCONSIN ENERGY CORP., DUE 11/20/01 1,050,000 1,048,615 1,048,615 ---------------------------- TOTAL COMMERCIAL PAPER 12,502,743 12,502,743 ----------------------------
SHORT-TERM MONEY MARKET FUND - 3.6%
SHORT-TERM MONEY MARKET FUND OF UMB BANK, n.a. 2,734,775 2,734,775 2,734,775 ----------------------------
TOTAL INVESTMENTS HELD $ 80,211,508 $ 75,656,464 ============================
See Notes to Financial Statements
UMB BANK, n.a. FUND FOR POOLING EQUITY INVESTMENTS OF EMPLOYEE TRUSTS STATEMENTS OF OPERATIONS YEARS ENDED OCTOBER 31, 2002, 2001 AND 2000
2002 2001 2000
INVESTMENT INCOME Interest $217,111 $456,790 $1,547,825 Dividends 1,038,605 1,412,905 1,947,364 ---------------------------------------- Total Investment Income 1,255,716 1,869,695 3,495,189 ----------------------------------------
Audit expense 20,990 17,091 9,354 ---------------------------------------- Net investment income 1,234,726 1,852,604 3,485,835 ----------------------------------------
REALIZED AND UNREALIZED GAIN LOSS) ON INVESTMENTS Realized gain (loss) on investments sold, matured or redeemed Proceeds 115,219,665 166,390,946 364,173,641
Cost of investments 122,945,688 165,218,948 363,491,108 ---------------------------------------- Net realized gain on investments sold, matured or redeemed (7,726,023) 1,171,998 682,533 ---------------------------------------- Unrealized gain (loss) on investments Beginning of year (4,555,044) 12,813,025 13,443,563 End of year (9,053,956) (4,555,044) 12,813,025 ---------------------------------------- Net unrealized gain (loss) on investments (4,498,912) (17,368,069) (630,538) ----------------------------------------
Net realized and unrealized gain (loss) on investments (12,224,935) (16,196,071) 51,995 ----------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS (10,990,209) $(14,343,467) $3,537,830 ========================================
TOTAL EXPENSE AS A PERCENT OF NET INVESTMENT INCOME 1.70% 0.92% 0.26% ========================================
UMB BANK, n.a. FUND FOR POOLING EQUITY INVESTMENTS OF EMPLOYEE TRUSTS STATEMENTS OF PARTICIPANTS' INTEREST YEARS ENDED OCTOBER 31, 2002, 2001 AND 2000
See Notes to Financial Statements
UMB BANK, n.a. FUND FOR POOLING DEBT INVESTMENTS OF EMPLOYEE TRUSTS STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2002 AND 2001
See Notes to Financial Statements
UMB BANK, n.a. FUND FOR POOLING DEBT INVESTMENTS OF EMPLOYEE TRUSTS STATEMENT OF INVESTMENTS HELD OCTOBER 31, 2002
See Notes to Financial Statements
UMB BANK, n.a. FUND FOR POOLING DEBT INVESTMENTS OF EMPLOYEE TRUSTS STATEMENT OF INVESTMENTS HELD OCTOBER 31, 2001
UMB BANK, n.a. FUND FOR POOLING DEBT INVESTMENTS OF EMPLOYEE TRUSTS STATEMENTS OF OPERATIONS YEARS ENDED OCTOBER 31, 2002, 2001 AND 2000
2002 2001 2000
INVESTMENT INCOME Interest 3,103,543 $3,664,186 $5,379,015 Audit expense 21,740 16,252 11,246 --------------------------------------- Net investment income 3,081,803 3,647,934 5,367,769 ---------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Realized gain (loss) on investments sold, matured or redeemed Proceeds 45,597,588 71,927,598 65,197,455 Cost of investments 44,788,932 70,891,525 66,653,932 --------------------------------------- Net realized gain on investments sold, matured or redeemed 808,656 1,036,073 (1,456,477) --------------------------------------- Unrealized gain (loss) on investments Beginning of year 3,542,632 33,212 (92,054) End of year 3,145,311 3,542,632 33,212 --------------------------------------- Net unrealized gain (loss) on investments (397,321) 3,509,420 125,266 ---------------------------------------
Net realized and unrealized gain (loss) on investments 411,335 4,545,493 (1,331,211) ---------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,493,138 $8,193,427 $4,036,558 =======================================
TOTAL EXPENSE AS A PERCENT OF NET INVESTMENT INCOME 0.71% 0.45% 0.21% =======================================
See Notes to Financial Statements
UMB BANK, n.a. FUND FOR POOLING DEBT INVESTMENTS OF EMPLOYEE TRUSTS STATEMENTS OF PARTICIPANTS' INTEREST YEARS ENDED OCTOBER 31, 2002, 2001 AND 2000
See Notes to Financial Statements
UMB BANK, n.a. POOLED INCOME FUND FOR EMPLOYEE TRUSTS STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2002 AND 2001
See Notes to Financial Statements
UMB BANK, n.a. POOLED INCOME FUND FOR EMPLOYEE TRUSTS STATEMENT OF INVESTMENTS HELD OCTOBER 31, 2002
Number of Shares or Cost Market Principal ---- ------ Amount ------ UNITED STATES GOVERNMENTS AND AGENCY OBLIGATIONS - 27.5%
FEDERAL HOME LOAN BANK, DISCOUNT NOTE, DUE 11/8/02 3,000,000 $2,999,014 $2,999,014 FEDERAL NATIONAL MORTAGE ASSOCIATION, DISCOUNT NOTE, DUE 11/1/02 2,000,000 2,000,000 2,000,000 -------------------------- TOTAL UNITED STATES GOVERNMENT AND AGENCY OBLIGATIONS 4,999,014 4,999,014 --------------------------
COMMERCIAL PAPER - 51.7%
AMERICAN EXPRESS, DUE 11/20/02 890,000 889,178 889,178 AMGEN, INC., DUE 11/12/02 850,000 849,548 849,548 BELLSOUTH, DUE 11/12/02 850,000 849,561 849,561 EMERSON ELECTRIC, DUE 11/1/02 850,000 850,000 850,000 EXECUTIVE JET INC., DUE 12/4/02 850,000 848,636 848,636 KIMBERLY CLARK CORP., DUE 12/18/02 850,000 848,113 848,113 MEDTRONIC, INC., DUE 1/6/03 850,000 847,476 847,476 MERCK & CO., DUE 11/5/02 850,000 849,835 849,835 MINNESOTA MINING & MANUFACTURING, DUE 11/7/02 850,000 849,752 849,752 PFIZER, INC., DUE 12/6/02 850,000 848,579 848,579 STATE STREET BOSTON, DUE 12/11/02 850,000 848,394 848,394 -------------------------- TOTAL COMMERCIAL PAPER 9,379,072 9,379,072 --------------------------
SHORT-TERM MONEY MARKET FUND - 20.8% SHORT-TERM MONEY MARKET FUND OF UMB BANK, n.a. 3,767,598 3,767,598 3,767,598 --------------------------
TOTAL INVESTMENTS HELD $18,145,684 $18,145,684 ==========================
See Notes to Financial Statements
UMB BANK, n.a. POOLED INCOME FUND FOR EMPLOYEE TRUSTS STATEMENT OF INVESTMENTS HELD OCTOBER 31, 2001
Number of Shares or Cost Market Principal ---- ------ Amount ------
UNITED STATES GOVERNMENTS AND AGENCY OBLIGATIONS - 22.7%
FEDERAL HOME LOAN BANK, DISCOUNT NOTE, DUE 11/9/01 978,000 $977,443 $977,443 FEDERAL HOME LOAN BANK, DISCOUNT NOTE, DUE 1/11/02 470,000 467,905 467,905 FEDERAL NATIONAL MORTGAGE ASSOCIATION, DISCOUNT NOTE, DUE 11/21/01 850,000 848,886 848,886 FEDERAL NATIONAL MORTGAGE ASSOCIATION, DISCOUNT NOTE, DUE 11/29/01 164,000 163,707 163,707 FEDERAL NATIONAL MORTGAGE ASSOCIATION, DISCOUNT NOTE, DUE 12/03/01 200,000 199,605 199,605 FEDERAL HOME LOAN MORTGAGE CORPORATION, DISCOUNT NOTE, DUE 11/16/01 800,000 799,175 799,175 FEDERAL HOME LOAN MORTGAGE CORPORATION, DISCOUNT NOTE, DUE 11/28/01 20,000 19,966 19,966 FEDERAL HOME LOAN MORTGAGE CORPORATION, DISCOUNT NOTE, DUE 11/29/01 97,000 96,826 96,826 FEDERAL HOME LOAN MORTGAGE CORPORATION, DISCOUNT NOTE, DUE 12/06/01 875,000 873,128 873,128 -------------------------- TOTAL UNITED STATES GOVERNMENT AND AGENCY OBLIGATIONS 4,446,641 4,446,641 --------------------------
COMMERCIAL PAPER - 58.4%
ALCOA, INC., DUE 11/14/01 1,000,000 999,126 999,126 BOEING CAPITAL CORP., DUE 11/14/01 1,000,000 999,047 999,047 GANNETT CO., DUE 11/13/01 1,000,000 999,183 999,183 GILLETTE CORP., DUE 12/20/01 905,000 901,612 901,612 HALLIBURTON CO., DUE 11/05/01 1,000,000 999,728 999,728 HERSHEY FOODS CORP., DUE 11/01/01 1,000,000 1,000,000 1,000,000 KIMBERLY-CLARK CORP., DUE 11/09/01 300,000 299,827 299,827 MARSH & MCLENNAN COS., INC., DUE 11/30/01 1,000,000 998,018 998,018 MCDONALDS CORP., DUE 11/02/01 250,000 249,983 249,983 ONEOK, INC., DUE 11/28/01 1,000,000 998,253 998,253 TEXACO, INC., DUE 12/12/01 1,000,000 997,460 997,460 UNITED TECHNOLOGIES CORP., DUE 11/19/01 1,000,000 998,760 998,760 WALGREEN CO., DUE 11/07/01 1,000,000 999,588 999,588 -------------------------- TOTAL COMMERCIAL PAPER 11,440,585 11,440,585 --------------------------
SHORT-TERM MONEY MARKET FUND - 18.9% SHORT-TERM MONEY MARKET FUND OF UMB BANK, n.a. 4,527,397 4,527,397 4,527,397 --------------------------
TOTAL INVESTMENTS HELD $20,414,623 $20,414,623 ==========================
See Notes to Financial Statements
UMB BANK, n.a. POOLED INCOME FUND FOR EMPLOYEE TRUSTS STATEMENTS OF OPERATIONS YEARS ENDED OCTOBER 31, 2002, 2001 AND 2000
2002 2001 2000 ---- ---- ----
INVESTMENT INCOME Interest $369,102 $1,008,975 $1,551,790 Audit expense 7,659 6,365 3,400 ---------------------------------------- Net investment income 361,443 1,002,610 1,548,390 ----------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Realized gain on investments sold, matured or redeemed Proceeds 346,700,568 280,574,802 273,484,686 Cost of investments 346,700,568 280,574,802 273,484,686 ---------------------------------------- Net realized gain on investments sold, matured or redeemed 0 0 0
----------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $361,443 $1,002,610 $1,548,390 ========================================
TOTAL EXPENSE AS A PERCENT OF NET INVESTMENT INCOME 2.12% 0.63% 0.22% ========================================
See Notes to Financial Statements
UMB BANK, n.a. POOLED INCOME FUND FOR EMPLOYEE TRUSTS STATEMENTS OF PARTICIPANTS' INTEREST YEARS ENDED OCTOBER 31, 2002, 2001 AND 2000
See Notes to Financial Statements
UMB BANK, n.a. FUND FOR POOLING EQUITY INVESTMENTS OF EMPLOYEE TRUSTS FUND FOR POOLING DEBT INVESTMENTS OF EMPLOYEE TRUSTS POOLED INCOME FUND FOR EMPLOYEE TRUSTS NOTES TO FINANCIAL STATEMENTS FOR THE THREE YEARS ENDED OCTOBER 31, 2002
NOTE 1: NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies followed by the Bank, as Trustee, are in accordance with the respective Trust Plans and Declarations of the Funds dated December 5, 1955 (as amended on October 10, 1963) and December 27, 1974, and in conformity with generally accepted accounting principles. The significant accounting policies and the nature of operations follow.
Nature of Operations
The Fund for Pooling Equity Investments of Employee Trusts, the Fund for Pooling Debt Investments of Employee Trusts and the Pooled Income Fund for Employee Trusts (Funds) provide a means through which funds, held by UMB Bank, n.a. in its capacity as sole fiduciary or co-fiduciary, may be pooled for diversification of investments. The Funds are managed by UMB Bank, n.a. under regulation 9 of the Comptroller of the Currency relating to collective investment funds. Regulation 9 specifies generally the form of trust, accounting policies, investment powers, asset valuation, etc. In addition, the Funds' units are registered with the Securities and Exchange Commission under the 1933 Act.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Investments
Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the year or, if no sale was reported on that date, at the average of the last reported bid and asked prices. Securities traded over-the-counter are valued at the average of the last reported bid and asked prices. Short-term obligations are valued at amortized cost, which approximates market value. Securities not priced elsewhere are priced by the Trustee, utilizing prices quoted by security brokers or dealers or investment bankers. Investment transactions are recorded on the trade date. Interest income is recorded daily. Dividend income is recorded on the ex-dividend date. Realized gains and losses from investment transactions and unrealized appreciation and depreciation of investments are reported on the identified cost basis.
Amortization
Discounts and premiums on securities purchased are amortized over the life of the respective securities.
Income Tax Exemption
Applicable statutes exempt the funds from U.S. federal and state income taxes.
Participation Units
There is no par or stated value for participation units. Trusts, for which the Bank is a fiduciary, may invest or withdraw based on daily valuations. Prior to March 15, 2000, trusts invested or withdrew based on monthly valuations as of the prior month.
Stock Split
The Board of the Funds approved a ten for one unit split with an ex-date and effective date of February 18, 2000. All unit and per unit amounts presented in these financial statements have been restated to give effect to the unit split retroactively.