10-Q 1 umb5498.txt FORM 10-Q ------------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) [X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2001 OR [ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 2-58109 THE COLLECTIVE INVESTMENT TRUST of which UMB Bank, n.a. is Trustee (Exact name of registrant as specified in its charter) Not Applicable (State or other jurisdiction of incorporation or organization) Not Applicable (I.R.S. Employer Identification No.) 1010 Grand Avenue, Kansas City, Missouri 64106 (Address of principal executive offices and Zip Code) (816) 860-7000 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- The number of units of participation outstanding as of July 31, 2001. Pooled Equity Fund - 8,118,807 Pooled Debt Fund - 6,571,666 Pooled Income Fund - 3,114,539 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements. INTRODUCTORY COMMENTS The Condensed Financial Statements included herein have been prepared by the Trustee, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Trustee believes that the disclosures are adequate to enable a reasonable understanding of the information presented. The results of operations for the period are not necessarily indicative of the results to be expected for the full year. These Condensed Financial Statements should be read in conjunction with the financial statements and the notes thereto included in the Collective Investment Trusts' Annual Report on Form 10-K for the year ended October 31, 2000. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments necessary to present fairly the Funds' condensed financial position as of July 31, 2001, and the condensed results of their operations for the periods ended July 31, 2001 and 2000, and are of a normal recurring nature. UMB Bank, n.a. Pooled Debt Fund for Employees Trusts Statement of Operations

UMB Bank, n.a. Pooled Debt Fund for Employees Trust Statements of Participant's Interest

UMB Bank, n.a. Pooled Debt Fund for Employees Trust Statement of Assets and Liabilities

UMB Bank, n.a. Pooled Equity Fund for Employees Trusts Statement of Operations

UMB Bank, n.a. Pooled Equity Fund for Employees Trust Statements of Participant's Interest

UMB Bank, n.a Pooled Equity Fund for Employees Trust Statement of Assets and Liabilities

UMB Bank, n.a Pooled Income Fund for Employees Trusts Statement of Operations

UMB Bank, n.a. Pooled Income Fund for Employees Trust Statements of Participant's Interest

UMB Bank, n.a Pooled Income Fund for Employees Trust Statement of Assets and Liabilities

Liabilities: Audit Fees Payable 1,630 1,806 Payable for Securities Purchased 0 0 Total Liabilities: 1,630 1,806 Participants' Interest: $6.26 Per Unit on 3,586,943 Units Outstanding on 10/31/00 22,460,962 $6.51 Per Unit on 3,114,539 Units Outstanding 07/31/01 20,286,553 ---------- ---------- Total Liabilities and Participants' Equity 22,462,592 20,288,359 ========== ========== MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS QUARTER ENDING 07/31/01 POOLED EQUITY FUND The driving force behind the world's financial markets was our Federal Reserve Bank. Early in 2000, the Fed started withdrawing from the excess money it had put in the banking system as a precaution against a Y2K collapse. This money injection was a driver behind the mania for tech stocks in late 1999 and early 2000 and the withdrawal of this money from the banking system caused tech stocks to peak in March 2000. The Fed continued to drain money from the system until the end of 2000. In January 2001, the Fed reversed course and started putting money in the system again. The tech collapse led to a slowdown of the U.S. economy. Initially, only the tech sector itself was effected, but the weakness has spread to the economy as a whole. Whether this weakness turns into an official recession remains to be seen. It seems to be a race between the Fed's monetary easing and the consumer losing confidence that his income will remain stable. While the collapse of technology has held the spotlight, some sectors of the market have done well. Having an underweighted technology position and overweighted positions in health care and energy kept technology and telecommunications from doing real damage to the Fund. As one might expect in a weak environment, heath care and consumer non-durables did well. The Fund's total return (income plus appreciation) for the quarter ended 07/31/01 was -1.90%. The Fund's return for the quarter ended 07/31/00 was -0.51% and for the fiscal year ended 10/31/00 was 3.32%. For the past 12 months, the total Fund return was -4.46%. POOLED DEBT FUND The FOMC executed a significant "easy money" campaign during the first half of 2001 (the last half of our fiscal year), in response to increasing concerns about a building economic slowdown. Fed Funds were lowered six times in six months, with a total drop of 275 basis points (from 6.50% to 3.75%). The bond markets responded to the drops in a contrarian fashion, by pricing in a possible resurgence of inflation. While short-term rates dropped dramatically, long-term rates began to rise, causing a "re-steepening" of the yield curve indicative of mildly inflationary expectations. At quarter-end, the 2,5,10 and 30-year Treasury notes were at 4.24, 5.04, 5.44 and 5.75% respectively (versus 5.09, 5.00, 5.13 and 5.45 at the beginning of 2001). Returns through June 30 were quite handsome, on both an absolute and relative basis. We are continuing to maintain a duration slightly longer than the benchmark, anticipating the economic softness to be slightly greater than the markets are currently anticipating. Our bias toward higher quality assets has diminished returns slightly this year, as investors stampeded into higher-risk bonds, anticipating that the massive "easy money" campaign would be positive for low-rated corporate bonds. Our belief that the economy may have another "down-leg" is a strong inspiration for avoiding the riskier corners of the Corporate market. We remain steadfast in our belief that investors can achieve attractive returns without taking on the volatility inherent in the lower-rated sectors of the corporate bond market. We are more comfortable building the yield of the Fund by increasing exposure to mortgage-backed securities, which deliver comparable yields without the credit risk (and therefore volatility) of corporate bonds. We continue to believe that the Fund is an outstanding choice for investors seeking a relatively stable fixed-income return, while avoiding the volatility associated with severe interest rate speculation or aggressive exposure to credit risk. The Fund's total return for the quarter ended 07/31/01 was 2.82%. The Fund's return for the quarter ended 07/31/00 was 2.64% and for the fiscal year ended 10/31/00 was 5.66%. For the past 12 months, the Fund returned 11.24%. POOLED INCOME FUND The Fund continues to invest in short-term obligations of the US Government, its Agencies, and high-quality issuers of Commercial Paper. We continue to seek maximum liquidity with minimal risk to principal. The Fund's return for the quarter ended 07/31/01 was 0.98%. The return for the quarter ended 07/31/00 was 1.69% and for the fiscal year ended 10/31/00 was 6.41%. For the past 12 months, the Fund returned 5.68%. -------------------------------------------------------------------------------- PART II -- OTHER INFORMATION Item 1. Legal Proceedings. Not applicable. Item 2. Changes in Securities. Not applicable. Item 3. Defaults Upon Senior Securities. Not applicable. Item 4. Submission of Matters to a Vote of Security Holders. Not applicable. Item 5. Other Information. Not applicable. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits. The numbers set forth below correspond to the exhibit number in Item 601 of Regulation S-K. (2) Plan of Acquisition, reorganization, arrangement, liquidation or succession. Not applicable. (3) Articles of Incorporation and Bylaws. Not applicable. (4) Instrument Defining the Rights of Security Holders, Including Indentures. Not applicable. (10) Material Contracts. Not applicable. (11) Statement re Computation of Per Share Earnings. Not applicable. (15) Letter re Unaudited Interim Financial Information. Not applicable. (18) Letter re Change in Accounting Principles. Not applicable. (19) Report Furnished to Security Holders. Not applicable. (22) Published Report Regarding Matters Submitted to Security Holders. Not applicable. (23) Consents of Experts and Counsel. Not applicable. (24) Power of Attorney. Not applicable. (27) Financial Data Schedule. None (99) Additional Exhibits. None. (b) Reports on Form 8-K. No report on Form 8-K was required to be filed during the three months ended July 31, 2001. -------------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the Securities 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 for Which UMB Bank, n.a. is Trustee (Registrant) by UMB Bank, n.a. as trustee Date: September 20, 2001 By: / s / Steve Campbell Steve Campbell Senior Vice President By: / s / Ralph R. Santoro Ralph R. Santoro Senior Vice President

COLLECTIVE INVESTMENT TRUSTS FOR UNITED MISSOURI BANK N A 10-Q