<p>NOTES TO THE FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Barclays Global Investors Funds (the "Trust"), a Delaware business trust, is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series investment company. The Trust,
formerly known as Barclays Global Investors Funds, Inc., was redomiciled from a Maryland corporation to a
Delaware business trust effective January 11, 2002. The Trust currently offers the following diversified funds: the
Asset Allocation, Bond Index, Institutional Money Market, Money Market and S&P 500 Stock Funds, and the
LifePath Income, LifePath 2010, LifePath 2020, LifePath 2030, and LifePath 2040 Portfolios.
These financial statements relate only to the Asset Allocation, Bond Index, Money Market and S&P 500 Stock
Funds (each, a "Fund", collectively, the "Funds").
The following significant accounting policies are consistently followed by the Trust in the preparation of its
financial statements, and such policies are in conformity with accounting principles generally accepted in the
United States of America ("U.S. GAAP") for investment companies. The preparation of financial statements in
conformity with U.S. GAAP 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.
INVESTMENT POLICY AND SECURITY VALUATION
Each Fund invests all of its assets in a separate series (each a "Master Portfolio") of Master Investment Portfolio
("MIP"). Each Master Portfolio has the same investment objective as the Fund bearing the corresponding name.
The value of each Fund's investment in its corresponding Master Portfolio reflects that Fund's interest in the net
assets of that Master Portfolio (99.99%, 15.75%, 2.74% and 45.91% for the Asset