Table of Contents
OMB APPROVAL | ||
OMB Number: 3235-0570 Expires: September 30, 2007 Estimated average burden |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09102
iShares, Inc.
(Exact name of registrant as specified in charter)
c/o: Investors Bank & Trust Company 200 Clarendon Street; Boston, MA 02116 | ||
(Address of principal executive offices) (Zip code) |
Corporation Trust Incorporated
300 East Lombard Street; Baltimore, MD 21202
(Name and address of agent for service)
Registrant’s telephone number,including area code: 1-800-474-2737
Date of fiscal year end: August 31, 2005
Date of reporting period: February 28, 2005
Table of Contents
Item 1. Reports to stockholders
Table of Contents
iShares®
Dear iShares Shareholder:
Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.
To sign up for electronic delivery, please follow these simple steps:
1. | Go to www.icsdelivery.com. |
2. | From the main page, select the first letter of your brokerage firm’s name. |
3. | Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser. |
4. | Fill out the appropriate information and provide the e-mail address where you would like your information sent. |
Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.
Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.
Table of Contents
1 | ||
12 | ||
14 | ||
14 | ||
19 | ||
23 | ||
31 | ||
37 | ||
42 | ||
47 | ||
52 | ||
57 | ||
62 | ||
67 | ||
74 | ||
82 | ||
93 | ||
102 |
Table of Contents
iSHARES® MSCI AUSTRIA INDEX FUND
Performance as of 2/28/05
The iShares MSCI Austria Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Austrian market, as measured by the MSCI Austria Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 42.57%, while the Index returned 44.23%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
59.93% | 59.84% | 63.88% | 27.23% | 27.29% | 27.34% | 10.95% | 11.01% | 11.98% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
59.93% | 59.84% | 63.88% | 233.35% | 234.19% | 234.82% | 154.06% | 155.28% | 175.98% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month and one-year periods. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 35.62 | % | |
Communications | 16.28 | ||
Basic Materials | 15.94 | ||
Energy | 13.64 | ||
Industrial | 12.38 | ||
Utilities | 5.66 | ||
Consumer Cyclical | 0.39 | ||
Short-Term and Other Net Assets | 0.09 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Erste Bank der Oesterreichischen Sparkassen AG | 20.17 | % | |
Telekom Austria AG | 16.28 | ||
OMV AG | 13.64 | ||
Bank Austria Creditanstalt | 5.14 | ||
Immofinanz Immobilien Anlage AG | 4.75 | ||
Boehler-Uddeholm AG | 4.75 | ||
Wienerberger Baustoffindustrie AG | 4.68 | ||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 4.57 | ||
Voest-Alpine AG | 4.54 | ||
Mayr-Melnhof Karton AG | 4.44 | ||
TOTAL | 82.96 | % | |
FUND PERFORMANCE OVERVIEW | 1 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI BELGIUM INDEX FUND
Performance as of 2/28/05
The iShares MSCI Belgium Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Belgian market, as measured by the MSCI Belgium Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 31.19%, while the Index returned 31.27%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
36.45% | 35.53% | 36.02% | 12.31% | 11.81% | 9.51% | 9.21% | 9.13% | 9.35% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
36.45% | 35.53% | 36.02% | 78.70% | 74.72% | 57.52% | 120.32% | 119.02% | 122.95% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month and one-year periods. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 44.99 | % | |
Consumer Non-Cyclical | 17.27 | ||
Utilities | 11.16 | ||
Basic Materials | 7.28 | ||
Communications | 7.10 | ||
Industrial | 6.37 | ||
Diversified | 4.99 | ||
Consumer Cyclical | 0.72 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Fortis | 23.80 | % | |
Dexia Group | 12.82 | ||
Electrabel SA | 11.16 | ||
KBC Groupe | 5.03 | ||
Groupe Bruxelles Lambert SA | 4.99 | ||
Belgacom SA | 4.88 | ||
Solvay SA | 4.87 | ||
InBev | 4.83 | ||
Delhaize Group | 4.58 | ||
UCB SA | 3.90 | ||
TOTAL | 80.86 | % | |
2 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI EMU INDEX FUND
Performance as of 2/28/05
The iShares MSCI EMU Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the European Monetary Union (“EMU”) markets, as measured by the MSCI EMU Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 26.90%, while the Index returned 27.21%.
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/05 | Inception to 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
19.67 | % | 18.41 | % | 19.95 | % | (0.73 | )% | (0.75 | )% | (0.36 | )% | (3.32 | )% | (3.40 | )% | (1.66 | )% |
Total returns for the periods since inception are calculated from the inception date of the Fund (7/25/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (7/31/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 28.85 | % | |
Communications | 15.49 | ||
Energy | 11.78 | ||
Consumer Non-Cyclical | 11.64 | ||
Industrial | 9.61 | ||
Utilities | 7.64 | ||
Consumer Cyclical | 6.25 | ||
Basic Materials | 5.16 | ||
Technology | 2.52 | ||
Diversified | 0.84 | ||
Short-Term and Other Net Assets | 0.22 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Total SA (France) | 4.29 | % | |
Royal Dutch Petroleum Co. (Netherlands) | 4.16 | ||
Telefonica SA (Spain) | 2.58 | ||
Sanofi-Aventis (France) | 2.46 | ||
Banco Santander Central Hispano SA (Spain) | 2.34 | ||
Nokia OYJ (Finland) | 2.30 | ||
ENI SpA (Italy) | 2.17 | ||
Siemens AG (Germany) | 1.98 | ||
BNP Paribas SA (France) | 1.83 | ||
ING Groep NV (Netherlands) | 1.82 | ||
TOTAL | 25.93 | % | |
FUND PERFORMANCE OVERVIEW | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI FRANCE INDEX FUND
Performance as of 2/28/05
The iShares MSCI France Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the French market, as measured by the MSCI France Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 22.31%, while the Index returned 22.59%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
18.31 | % | 17.79 | % | 18.35 | % | (0.50 | )% | (0.88 | )% | (0.25 | )% | 10.23 | % | 10.24 | % | 10.47 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
18.31 | % | 17.79 | % | 18.35 | % | (2.45 | )% | (4.32 | )% | (1.25 | )% | 139.59 | % | 139.71 | % | 144.35 | % |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | ||
Sector | % of Net Assets | |
Consumer Non-Cyclical | 20.44% | |
Financial | 19.24 | |
Energy | 15.93 | |
Communications | 12.66 | |
Industrial | 11.17 | |
Consumer Cyclical | 8.27 | |
Utilities | 3.71 | |
Basic Materials | 3.60 | |
Technology | 2.73 | |
Diversified | 2.08 | |
Short-Term and Other Net Assets | 0.17 | |
TOTAL | 100.00% | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Total SA | 15.54 | % | |
Sanofi-Aventis | 8.96 | ||
BNP Paribas SA | 6.62 | ||
France Telecom | 5.13 | ||
AXA | 4.37 | ||
Societe Generale Class A | 4.04 | ||
Vivendi Universal SA | 3.69 | ||
Carrefour SA | 3.44 | ||
Groupe Danone | 2.76 | ||
L’Oreal SA | 2.74 | ||
TOTAL | 57.29 | % | |
4 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI GERMANY INDEX FUND
Performance as of 2/28/05
The iShares MSCI Germany Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the German market, as measured by the MSCI Germany Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 25.24%, while the Index returned 25.63%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
15.65 | % | 14.97 | % | 15.86 | % | (4.60 | )% | (4.83 | )% | (4.58 | )% | 6.35 | % | 6.32 | % | 6.80 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
15.65 | % | 14.97 | % | 15.86 | % | (20.97 | )% | (21.91 | )% | (20.92 | )% | 73.68 | % | 73.34 | % | 80.47 | % |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 23.28 | % | |
Consumer Cyclical | 14.66 | ||
Industrial | 14.60 | ||
Utilities | 13.31 | ||
Basic Materials | 10.75 | ||
Communications | 9.32 | ||
Consumer Non-Cyclical | 8.05 | ||
Technology | 5.96 | ||
Short-Term and Other Net Assets | 0.07 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Siemens AG | 10.07 | % | |
Deutsche Telekom AG | 9.05 | ||
E.ON AG | 8.88 | ||
Deutsche Bank AG | 6.99 | ||
DaimlerChrysler AG | 6.46 | ||
BASF AG | 5.69 | ||
Allianz AG | 4.97 | ||
SAP AG | 4.88 | ||
RWE AG | 3.94 | ||
Bayer AG | 3.82 | ||
TOTAL | 64.75 | % | |
FUND PERFORMANCE OVERVIEW | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI ITALY INDEX FUND
Performance as of 2/28/05
The iShares MSCI Italy Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Italian market, as measured by the MSCI Italy Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 30.95%, while the Index returned 31.23%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
29.41% | 28.57% | 29.43% | 3.20% | 3.12% | 3.10% | 12.58% | 12.55% | 12.46% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
29.41% | 28.57% | 29.43% | 17.05% | 16.60% | 16.49% | 189.47% | 188.83% | 186.78% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 42.43 | % | |
Communications | 19.23 | ||
Energy | 18.31 | ||
Utilities | 11.32 | ||
Consumer Non-Cyclical | 3.18 | ||
Consumer Cyclical | 3.14 | ||
Industrial | 2.11 | ||
Short-Term and Other Net Assets | 0.28 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
ENI SpA | 18.31 | % | |
Telecom Italia SpA | 8.81 | ||
Assicurazioni Generali SpA | 8.43 | ||
Enel SpA | 7.56 | ||
Telecom Italia SpA RNC | 5.19 | ||
UniCredito Italiano SpA | 4.85 | ||
Sanpaolo IMI SpA | 4.49 | ||
Banca Intesa SpA | 4.12 | ||
Snam Rete Gas SpA | 2.36 | ||
Mediobanca SpA | 2.35 | ||
TOTAL | 66.47 | % | |
6 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI NETHERLANDS INDEX FUND
Performance as of 2/28/05
The iShares MSCI Netherlands Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Dutch market, as measured by the MSCI Netherlands Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 25.92%, while the Index returned 26.60%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
18.17 | % | 17.71 | % | 18.16 | % | (1.89 | )% | (2.13 | )% | (0.70 | )% | 5.70 | % | 5.70 | % | 7.08 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
18.17 | % | 17.71 | % | 18.16 | % | (9.08 | )% | (10.18 | )% | (3.46 | )% | 64.36 | % | 64.41 | % | 84.70 | % |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 25.40 | % | |
Energy | 24.75 | ||
Consumer Non-Cyclical | 19.71 | ||
Communications | 11.67 | ||
Industrial | 8.85 | ||
Basic Materials | 5.29 | ||
Technology | 3.50 | ||
Consumer Cyclical | 0.34 | ||
Short-Term and Other Net Assets | 0.49 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Royal Dutch Petroleum Co. | 24.75 | % | |
ING Groep NV | 14.28 | ||
Unilever NV CVA | 9.03 | ||
ABN AMRO Holding NV | 4.83 | ||
Koninklijke Philips Electronics NV | 4.80 | ||
AEGON NV | 4.52 | ||
Koninklijke KPN NV | 4.48 | ||
Akzo Nobel NV | 4.11 | ||
TPG NV | 4.05 | ||
Reed Elsevier NV | 3.79 | ||
TOTAL | 78.64 | % | |
FUND PERFORMANCE OVERVIEW | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SPAIN INDEX FUND
Performance as of 2/28/05
The iShares MSCI Spain Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Spanish market, as measured by the MSCI Spain Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 32.08%, while the Index returned 31.53%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
24.57 | % | 23.93 | % | 23.98 | % | 6.67 | % | 6.49 | % | 5.05 | % | 14.76 | % | 14.72 | % | 15.06 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
24.57 | % | 23.93 | % | 23.98 | % | 38.08 | % | 36.98 | % | 27.93 | % | 243.86 | % | 242.84 | % | 251.83 | % |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 35.89 | % | |
Communications | 22.94 | ||
Utilities | 14.99 | ||
Consumer Non-Cyclical | 8.23 | ||
Industrial | 6.55 | ||
Energy | 5.43 | ||
Consumer Cyclical | 3.47 | ||
Basic Materials | 1.70 | ||
Technology | 0.73 | ||
Short-Term and Other Net Assets | 0.07 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Telefonica SA | 20.81 | % | |
Banco Santander Central Hispano SA | 15.36 | ||
Banco Bilbao Vizcaya Argentaria SA | 12.18 | ||
Repsol YPF SA | 5.00 | ||
Iberdrola SA | 4.87 | ||
Endesa SA | 4.87 | ||
Banco Popular Espanol SA | 4.85 | ||
Altadis SA | 3.54 | ||
Actividades de Construcciones y Servicios SA | 2.47 | ||
Industria de Diseno Textil SA | 2.28 | ||
TOTAL | 76.23 | % | |
8 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWEDEN INDEX FUND
Performance as of 2/28/05
The iShares MSCI Sweden Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Swedish market, as measured by the MSCI Sweden Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 26.64%, while the Index returned 26.95%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05] | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
25.97 | % | 24.90 | % | 26.41 | % | (4.89 | )% | (5.06 | )% | (6.07 | )% | 10.56 | % | 10.52 | % | 11.89 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
25.97 | % | 24.90 | % | 26.41 | % | (22.18 | )% | (22.86 | )% | (26.87 | )% | 146.02 | % | 145.33 | % | 173.99 | % |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Communications | 27.63 | % | |
Financial | 23.44 | ||
Consumer Cyclical | 18.99 | ||
Industrial | 15.44 | ||
Consumer Non-Cyclical | 8.05 | ||
Basic Materials | 5.49 | ||
Energy | 0.52 | ||
Technology | 0.37 | ||
Short-Term and Other Net Assets | 0.07 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Telefonaktiebolaget LM Ericsson Class B | 19.07 | % | |
Nordea AB | 9.81 | ||
Hennes & Mauritz AB Class B | 7.30 | ||
TeliaSonera AB | 5.51 | ||
Svenska Handelsbanken AB Class A | 4.98 | ||
Volvo AB Class B | 4.56 | ||
Skandinaviska Enskilda Banken AB Class A | 4.11 | ||
Sandvik AB | 4.01 | ||
Svenska Cellulosa AB Class B | 3.34 | ||
Electrolux AS Series B | 2.99 | ||
TOTAL | 65.68 | % | |
FUND PERFORMANCE OVERVIEW | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWITZERLAND INDEX FUND
Performance as of 2/28/05
The iShares MSCI Switzerland Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Swiss market, as measured by the MSCI Switzerland Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 20.30%, while the Index returned 20.03%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
15.85% | 16.68% | 14.09% | 4.85% | 4.73% | 6.14% | 6.22% | 6.32% | 7.58% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
15.85% | 16.68% | 14.09% | 26.74% | 26.01% | 34.70% | 71.86% | 73.24% | 92.66% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Consumer Non-Cyclical | 45.79 | % | |
Financial | 26.08 | ||
Basic Materials | 8.50 | ||
Industrial | 8.12 | ||
Consumer Cyclical | 6.50 | ||
Communications | 2.98 | ||
Technology | 0.44 | ||
Short-Term and Other Net Assets | 1.59 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Novartis AG | 16.61 | % | |
Nestle SA Registered | 12.23 | ||
UBS AG Registered | 9.82 | ||
Roche Holding AG Genusschein | 8.05 | ||
Credit Suisse Group | 4.89 | ||
Zurich Financial Services AG | 4.66 | ||
Swiss Reinsurance Co. | 4.19 | ||
Holcim Ltd. Registered | 3.83 | ||
Syngenta AG | 2.95 | ||
Compagnie Financiere Richemont AG Class A | 2.91 | ||
TOTAL | 70.14 | % | |
10 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI UNITED KINGDOM INDEX FUND
Performance as of 2/28/05
The iShares MSCI United Kingdom Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the British market, as measured by the MSCI United Kingdom Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 20.62%, while the Index returned 21.00%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
18.51 | % | 16.28 | % | 19.40 | % | 3.02 | % | 2.54 | % | 3.61 | % | 8.56 | % | 8.49 | % | 9.25 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
18.51 | % | 16.28 | % | 19.40 | % | 16.02 | % | 13.37 | % | 19.41 | % | 108.93 | % | 107.76 | % | 121.15 | % |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 26.76 | % | |
Consumer Non-Cyclical | 21.19 | ||
Energy | 15.01 | ||
Communications | 13.22 | ||
Consumer Cyclical | 7.66 | ||
Basic Materials | 5.77 | ||
Industrial | 4.86 | ||
Utilities | 4.32 | ||
Technology | 0.55 | ||
Diversified | 0.18 | ||
Short-Term and Other Net Assets | 0.48 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
BP PLC | 9.96 | % | |
HSBC Holdings PLC | 7.98 | ||
Vodafone Group PLC | 7.38 | ||
GlaxoSmithKline PLC | 6.01 | ||
Royal Bank of Scotland Group PLC | 4.65 | ||
Shell Transport & Trading Co. PLC | 3.87 | ||
Barclays PLC | 2.99 | ||
AstraZeneca PLC | 2.78 | ||
HBOS PLC | 2.68 | ||
Lloyds TSB Group PLC | 2.26 | ||
TOTAL | 50.56 | % | |
FUND PERFORMANCE OVERVIEW | 11 |
Table of Contents
iSHARES®, INC.
As a shareholder of an iShares Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and (2) ongoing costs, including management fees and other fund expenses. The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2004 to February 28, 2005.
Actual Expenses
The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line under each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under each Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
iShares MSCI Index Fund | Beginning Account Value (September 1, 2004) | Ending Account Value (February 28, 2005) | Annualized Expense Ratio | Expenses Paid During Period* (September 1, 2004 to February 28, 2005) | ||||||||
Austria | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,425.70 | 0.58 | % | $ | 3.49 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Belgium | ||||||||||||
Actual | 1,000.00 | 1,311.90 | 0.58 | 3.32 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
EMU | ||||||||||||
Actual | 1,000.00 | 1,269.00 | 0.58 | 3.26 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
France | ||||||||||||
Actual | 1,000.00 | 1,223.10 | 0.58 | 3.20 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 |
12 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Shareholder Expenses (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (September 1, 2004) | Ending Account Value (February 28, 2005) | Annualized Expense Ratio | Expenses Paid During Period* (September 1, 2004 to February 28, 2005) | ||||||||
Germany | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,252.40 | 0.58 | % | $ | 3.24 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Italy | ||||||||||||
Actual | 1,000.00 | 1,309.50 | 0.58 | 3.32 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Netherlands | ||||||||||||
Actual | 1,000.00 | 1,259.20 | 0.58 | 3.25 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Spain | ||||||||||||
Actual | 1,000.00 | 1,320.80 | 0.58 | 3.34 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Sweden | ||||||||||||
Actual | 1,000.00 | 1,266.40 | 0.58 | 3.26 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Switzerland | ||||||||||||
Actual | 1,000.00 | 1,203.00 | 0.58 | 3.17 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
United Kingdom | ||||||||||||
Actual | 1,000.00 | 1,206.20 | 0.58 | 3.17 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 |
* | Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days), and divided by the number of days in the year (365 days). |
SHAREHOLDER EXPENSES | 13 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
COMMON STOCKS – 99.30% | ||||||
AIRLINES – 0.39% | ||||||
Austrian Airlines AG1,2 | 63,615 | $ | 737,156 | |||
737,156 | ||||||
BANKS – 25.31% | ||||||
Bank Austria Creditanstalt | 99,450 | 9,702,364 | ||||
Erste Bank der Oesterreichischen Sparkassen AG | 696,062 | 38,065,417 | ||||
47,767,781 | ||||||
BUILDING MATERIALS – 4.68% | ||||||
Wienerberger Baustoffindustrie AG | 177,138 | 8,828,911 | ||||
8,828,911 | ||||||
CHEMICALS – 2.22% | ||||||
Lenzing AG | 15,409 | 4,192,893 | ||||
4,192,893 | ||||||
ELECTRIC – 5.66% | ||||||
EVN AG | 27,378 | 2,062,306 | ||||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 36,192 | 8,623,081 | ||||
10,685,387 | ||||||
ENGINEERING & CONSTRUCTION – 4.19% | ||||||
Flughafen Wien AG | 101,556 | 7,912,781 | ||||
7,912,781 | ||||||
ENVIRONMENTAL CONTROL – 0.75% | ||||||
BWT AG | 38,959 | 1,414,329 | ||||
1,414,329 | ||||||
FOREST PRODUCTS & PAPER – 4.44% | ||||||
Mayr-Melnhof Karton AG | 47,019 | 8,378,633 | ||||
8,378,633 | ||||||
INSURANCE – 2.00% | ||||||
Generali Holding Vienna AG | 90,009 | 3,766,998 | ||||
3,766,998 | ||||||
IRON & STEEL – 9.28% | ||||||
Boehler-Uddeholm AG | 59,202 | 8,958,322 | ||||
Voest-Alpine AG2 | 102,492 | 8,559,810 | ||||
17,518,132 | ||||||
MACHINERY – CONSTRUCTION & MINING – 0.35% | ||||||
Palfinger AG | 11,076 | 666,723 | ||||
666,723 | ||||||
MANUFACTURING – 2.41% | ||||||
RHI AG1,2 | 145,645 | 4,544,998 | ||||
4,544,998 | ||||||
OIL & GAS – 13.64% | ||||||
OMV AG2 | 74,126 | 25,739,124 | ||||
25,739,124 | ||||||
REAL ESTATE – 7.70% | ||||||
CA Immobilien Anlagen AG1,2 | 205,686 | 5,561,363 | ||||
Immofinanz Immobilien Anlage AG1,2 | 949,494 | 8,960,810 | ||||
14,522,173 | ||||||
TELECOMMUNICATIONS – 16.28% | ||||||
Telekom Austria AG2 | 1,542,908 | 30,719,684 | ||||
30,719,684 | ||||||
TOTAL COMMON STOCKS | 187,395,703 | |||||
PREFERRED STOCKS – 0.61% | ||||||
INSURANCE – 0.61% | ||||||
Wiener Staedtische Allgemeine | 25,525 | 1,158,039 | ||||
1,158,039 | ||||||
TOTAL PREFERRED STOCKS | 1,158,039 | |||||
SHORT-TERM INVESTMENTS – 12.00% | ||||||
COMMERCIAL PAPER3 – 2.81% | ||||||
Amstel Funding Corp. | $ | 45,237 | 44,603 | |||
Amsterdam Funding Corp. | 119,714 | 119,666 | ||||
ANZ National Bank Ltd. | 54,416 | 53,675 | ||||
Barton Capital Corp. | 240,797 | 240,602 | ||||
Blue Ridge Asset Funding Corp. | 119,714 | 119,529 | ||||
Bryant Park Funding LLC | 10,883 | 10,872 |
14 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Chariot Funding LLC | $ | 108,831 | $ | 108,678 | ||
Chesham Finance LLC | 43,532 | 43,523 | ||||
Corporate Asset Funding | 54,416 | 54,327 | ||||
CRC Funding LLC | 27,208 | 27,189 | ||||
Delaware Funding Corp. | 201,819 | 201,595 | ||||
DEPFA Bank PLC | 54,416 | 54,199 | ||||
Edison Asset Securitization | 353,702 | 353,063 | ||||
Fairway Finance LLC | 103,751 | 103,639 | ||||
Falcon Asset Securitization Corp. | 419,612 | �� | 419,122 | |||
Ford Credit Auto Receivables | 252,706 | 252,242 | ||||
Ford Credit Floorplan Motown | 136,039 | 135,983 | ||||
Fortis Funding LLC | 152,364 | 151,677 | ||||
General Electric Capital Corp. | 239,429 | 238,808 | ||||
Giro Funding US Corp. | 131,197 | 131,058 | ||||
Grampian Funding LLC | 321,052 | 317,103 | ||||
Jupiter Securitization Corp. | 496,521 | 496,071 | ||||
Kitty Hawk Funding Corp. | 163,247 | 163,086 | ||||
Liberty Street Funding Corp. | 59,857 | 59,799 | ||||
Moat Funding LLC | 21,766 | 21,733 | ||||
Nordea North America Inc. | 54,416 | 53,869 | ||||
Park Avenue Receivables Corp. | 169,997 | 169,881 | ||||
Park Granada LLC | 76,182 | 76,084 | ||||
Preferred Receivables Funding Corp. | 231,244 | 230,924 | ||||
Ranger Funding Co. LLC | 32,363 | 32,356 | ||||
Santander Central Hispano | 136,039 | 134,701 | ||||
Scaldis Capital LLC | 27,238 | 26,970 | ||||
Ticonderoga Master Funding Ltd. | 184,565 | 184,294 | ||||
Tulip Funding Corp. | 181,668 | 181,668 | ||||
UBS Finance (Delaware) | 217,662 | 217,662 | ||||
Windmill Funding Corp. | 38,091 | 38,072 | ||||
Yorktown Capital LLC | 38,091 | 38,049 | ||||
5,306,372 | ||||||
FLOATING RATE NOTES3 – 4.41% | ||||||
Allstate Life Global Funding II | 50,062 | 50,064 | ||||
American Express Centurion Bank | 163,247 | 163,247 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
American Express Credit Corp. | $ | 217,662 | $ | 217,734 | ||
Bank of Nova Scotia | 70,740 | 70,722 | ||||
Beta Finance Inc. | 408,117 | 408,149 | ||||
Canadian Imperial Bank of Commerce | 370,026 | 369,954 | ||||
CC USA Inc. | 217,662 | 217,645 | ||||
Commodore CDO Ltd. | 27,208 | 27,208 | ||||
Den Danske Bank NY | 326,494 | 326,443 | ||||
DEPFA Bank PLC | 108,831 | 108,831 | ||||
Dorada Finance Inc. | 90,330 | 90,319 | ||||
Fairway Finance LLC | 163,247 | 163,245 | ||||
Fifth Third Bancorp | 217,662 | 217,662 | ||||
Five Finance Inc. | 141,481 | 141,487 | ||||
General Electric Capital Corp. | 48,974 | 49,042 | ||||
General Electric Commercial Equipment Financing LLC | 46,480 | 46,480 | ||||
Hartford Life Global Funding Trust | 108,831 | 108,831 | ||||
HBOS Treasury Services PLC | 326,494 | 326,493 | ||||
K2 USA LLC | 489,741 | 489,747 | ||||
Leafs LLC | 114,273 | 114,272 | ||||
Links Finance LLC | 446,208 | 446,322 | ||||
Lothian Mortgages PLC | 217,662 | 217,662 | ||||
MetLife Funding Inc. | 163,247 | 163,247 | ||||
National City Bank (Ohio) | 272,078 | 272,058 | ||||
Nationwide Building Society | 402,676 | 402,760 | ||||
Norddeutsche Landesbank | 108,831 | 108,816 | ||||
Northern Rock PLC | 326,494 | 326,493 | ||||
Permanent Financing PLC | 293,844 | 293,844 | ||||
Sedna Finance Inc. | 59,857 | 59,845 | ||||
Sigma Finance Inc. | 555,039 | 555,067 | ||||
Tango Finance Corp. | 334,874 | 334,861 | ||||
Wachovia Asset Securitization Inc. | 326,494 | 326,494 | ||||
Wells Fargo & Co. | 54,416 | 54,423 | ||||
WhistleJacket Capital LLC | 380,909 | 380,878 |
16 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
White Pine Finance LLC | $ | 595,307 | $ | 595,263 | ||
Winston Funding Ltd. | 77,706 | 77,706 | ||||
8,323,314 | ||||||
MEDIUM-TERM NOTES3 – 0.06% | ||||||
CC USA Inc. | 108,831 | 108,830 | ||||
108,830 | ||||||
MONEY MARKET FUNDS3 – 0.31% | ||||||
Barclays Global Investors Funds | 527,148 | 527,148 | ||||
BlackRock Temp Cash | 20,296 | 20,296 | ||||
Short-Term Investment Co. | 41,065 | 41,065 | ||||
588,509 | ||||||
REPURCHASE AGREEMENTS3 – 2.25% | ||||||
Bank of America N.A. Repurchase Agreements, | $ | 2,448,702 | 2,448,702 | |||
Merrill Lynch Government Securities Inc. | 1,795,715 | 1,795,715 | ||||
4,244,417 | ||||||
TIME DEPOSITS3 – 2.00% | ||||||
Abbey National Treasury Services PLC | 76,182 | 76,180 | ||||
Banco Bilbao Vizcaya Argentaria SA | 163,247 | 163,247 | ||||
BNP Paribas (New York) | 152,364 | 152,363 | ||||
Credit Suisse First Boston | 108,831 | 108,831 | ||||
Deutsche Bank AG | 181,241 | 181,241 | ||||
First Tennessee Bank | 272,078 | 272,078 | ||||
HBOS Treasury Services PLC | 178,483 | 178,483 | ||||
Key Bank N.A. | 652,987 | 652,987 | ||||
Natexis Banques | 190,455 | 190,454 | ||||
Norddeutsche Landesbank | 108,831 | 108,825 | ||||
Royal Bank of Scotland | 27,208 | 27,208 | ||||
Societe Generale | 10,883 | 10,883 | ||||
Toronto-Dominion Bank | 435,325 | 435,307 | ||||
UBS AG | 43,532 | 43,530 | ||||
Washington Mutual Bank | 500,624 | 500,624 | ||||
Wells Fargo Bank N.A. | 669,312 | 669,310 | ||||
3,771,551 | ||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.16% | ||||||
Federal Home Loan Mortgage Corp. | 130,438 | 130,185 |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Federal National Mortgage Association | $ | 163,247 | $ | 161,739 | |||
291,924 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 22,634,917 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 111.91% | 211,188,659 | ||||||
Other Assets, Less Liabilities – (11.91%) | (22,468,537 | ) | |||||
NET ASSETS – 100.00% | $ | 188,720,122 | |||||
1 | Non-income earning security. |
2 | All or a portion of this security represents a security on loan. See Note 5. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
18 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BELGIUM INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
COMMON STOCKS – 99.88% | ||||||
BANKS – 41.65% | ||||||
Dexia Group1 | 304,214 | $ | 7,244,144 | |||
Fortis1 | 476,338 | 13,442,002 | ||||
KBC Groupe1 | 33,670 | 2,840,169 | ||||
23,526,315 | ||||||
BEVERAGES – 4.83% | ||||||
InBev1 | 71,262 | 2,730,802 | ||||
2,730,802 | ||||||
CHEMICALS – 4.87% | ||||||
Solvay SA1 | 23,606 | 2,752,641 | ||||
2,752,641 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 1.40% | ||||||
Algemene Maatschappij voor | ||||||
Nijverheidskredit NV1 | 6,956 | 788,502 | ||||
788,502 | ||||||
ELECTRIC – 11.16% | ||||||
Electrabel SA1 | 14,208 | 6,302,674 | ||||
6,302,674 | ||||||
ELECTRICAL COMPONENTS & EQUIPMENT – 1.22% | ||||||
Bekaert NV | 8,140 | 692,036 | ||||
692,036 | ||||||
ELECTRONICS – 0.90% | ||||||
Barco NV | 5,994 | 509,988 | ||||
509,988 | ||||||
FOOD – 7.59% | ||||||
Colruyt NV | 9,842 | 1,695,678 | ||||
Delhaize Group1 | 32,782 | 2,589,035 | ||||
4,284,713 | ||||||
HOLDING COMPANIES – DIVERSIFIED – 4.99% | ||||||
Groupe Bruxelles Lambert SA | 30,414 | 2,817,828 | ||||
2,817,828 | ||||||
MANUFACTURING – 3.00% | ||||||
AGFA-Gevaert NV | 47,952 | 1,696,885 | ||||
1,696,885 | ||||||
MINING – 2.41% | ||||||
Umicore1 | 13,246 | 1,359,095 | ||||
1,359,095 | ||||||
PHARMACEUTICALS – 4.85% | ||||||
Omega Pharma SA1 | 10,582 | 535,434 | ||||
UCB SA | 43,734 | 2,203,010 | ||||
2,738,444 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 1.94% | ||||||
Cofinimmo1 | 6,660 | 1,098,831 | ||||
1,098,831 | ||||||
RETAIL – 0.72% | ||||||
SA D’Ieteren NV1 | 1,776 | 404,761 | ||||
404,761 | ||||||
TELECOMMUNICATIONS – 7.10% | ||||||
Belgacom SA2 | 65,351 | 2,754,111 | ||||
Mobistar SA2 | 13,986 | 1,255,876 | ||||
4,009,987 | ||||||
TRANSPORTATION – 1.25% | ||||||
Compagnie Maritime Belge SA | 9,620 | 372,730 | ||||
Euronav SA | 9,990 | 331,506 | ||||
704,236 | ||||||
TOTAL COMMON STOCKS | 56,417,738 | |||||
SHORT-TERM INVESTMENTS – 46.76% | ||||||
COMMERCIAL PAPER3 – 11.00% | ||||||
Amstel Funding Corp. | $ | 52,947 | 52,205 | |||
Amsterdam Funding Corp. | 140,118 | 140,062 | ||||
ANZ National Bank Ltd. | 63,690 | 62,823 | ||||
Barton Capital Corp. | 281,836 | 281,608 | ||||
Blue Ridge Asset Funding Corp. | 140,118 | 139,901 | ||||
Bryant Park Funding LLC | 12,738 | 12,725 | ||||
Chariot Funding LLC | 127,380 | 127,200 | ||||
Chesham Finance LLC | 50,952 | 50,941 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BELGIUM INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Corporate Asset Funding | $ | 63,690 | $ | 63,586 | ||
CRC Funding LLC | 31,845 | 31,823 | ||||
Delaware Funding Corp. | 236,215 | 235,953 | ||||
DEPFA Bank PLC | 63,690 | 63,436 | ||||
Edison Asset Securitization | 413,984 | 413,237 | ||||
Fairway Finance LLC | 121,434 | 121,303 | ||||
Falcon Asset Securitization Corp. | 491,127 | 490,554 | ||||
Ford Credit Auto Receivables | 295,776 | 295,232 | ||||
Ford Credit Floorplan Motown | 159,225 | 159,159 | ||||
Fortis Funding LLC | 178,331 | 177,528 | ||||
General Electric Capital Corp. | 280,235 | 279,508 | ||||
Giro Funding US Corp. | 153,557 | 153,393 | ||||
Grampian Funding LLC | 375,770 | 371,148 | ||||
Jupiter Securitization Corp. | 581,144 | 580,618 | ||||
Kitty Hawk Funding Corp. | 191,069 | 190,881 | ||||
Liberty Street Funding Corp. | 70,059 | 69,991 | ||||
Moat Funding LLC | 25,476 | 25,438 | ||||
Nordea North America Inc. | 63,690 | 63,050 | ||||
Park Avenue Receivables Corp. | 198,970 | 198,834 | ||||
Park Granada LLC | 89,166 | 89,052 | ||||
Preferred Receivables Funding Corp. | 270,655 | 270,281 | ||||
Ranger Funding Co. LLC | 37,879 | 37,871 | ||||
Santander Central Hispano | 159,225 | 157,658 | ||||
Scaldis Capital LLC | 31,881 | 31,566 | ||||
Ticonderoga Master Funding Ltd. | 216,021 | 215,705 | ||||
Tulip Funding Corp. | 212,630 | 212,630 | ||||
UBS Finance (Delaware) | 254,759 | 254,759 | ||||
Windmill Funding Corp. | 44,583 | 44,561 | ||||
Yorktown Capital LLC | 44,583 | 44,533 | ||||
6,210,753 | ||||||
FLOATING RATE NOTES3 – 17.25% | ||||||
Allstate Life Global Funding II | 58,595 | 58,597 | ||||
American Express Centurion Bank | 191,069 | 191,069 | ||||
American Express Credit Corp. | 254,759 | 254,843 | ||||
Bank of Nova Scotia | 82,797 | 82,776 |
20 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BELGIUM INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Beta Finance Inc. | $ | 477,674 | $ | 477,712 | ||
Canadian Imperial Bank of Commerce | 433,091 | 433,006 | ||||
CC USA Inc. | 254,759 | 254,739 | ||||
Commodore CDO Ltd. | 31,845 | 31,845 | ||||
Den Danske Bank NY | 382,139 | 382,080 | ||||
DEPFA Bank PLC | 127,380 | 127,380 | ||||
Dorada Finance Inc. | 105,725 | 105,712 | ||||
Fairway Finance LLC | 191,069 | 191,068 | ||||
Fifth Third Bancorp | 254,759 | 254,759 | ||||
Five Finance Inc. | 165,594 | 165,600 | ||||
General Electric Capital Corp. | 57,321 | 57,400 | ||||
General Electric Commercial Equipment Financing LLC | 54,401 | 54,401 | ||||
Hartford Life Global Funding Trust | 127,380 | 127,380 | ||||
HBOS Treasury Services PLC | 382,139 | 382,140 | ||||
K2 USA LLC | 573,208 | 573,215 | ||||
Leafs LLC | 133,749 | 133,749 | ||||
Links Finance LLC | 522,256 | 522,389 | ||||
Lothian Mortgages PLC | 254,759 | 254,759 | ||||
MetLife Funding Inc. | 191,069 | 191,069 | ||||
National City Bank (Ohio) | 318,449 | 318,426 | ||||
Nationwide Building Society | 471,305 | 471,404 | ||||
Norddeutsche Landesbank | 127,380 | 127,361 | ||||
Northern Rock PLC | 382,139 | 382,139 | ||||
Permanent Financing PLC | 343,925 | 343,926 | ||||
Sedna Finance Inc. | 70,059 | 70,044 | ||||
Sigma Finance Inc. | 649,636 | 649,666 | ||||
Tango Finance Corp. | 391,947 | 391,931 | ||||
Wachovia Asset Securitization Inc. | 382,139 | 382,138 | ||||
Wells Fargo & Co. | 63,690 | 63,699 | ||||
WhistleJacket Capital LLC | 445,829 | 445,789 | ||||
White Pine Finance LLC | 696,767 | 696,718 | ||||
Winston Funding Ltd. | 90,949 | 90,949 | ||||
9,741,878 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BELGIUM INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | |||||
MEDIUM-TERM NOTES3 – 0.23% |
| ||||||
CC USA Inc. | $ | 127,380 | $ | 127,378 | |||
127,378 | |||||||
MONEY MARKET FUNDS3 – 1.08% |
| ||||||
Barclays Global Investors Funds | 536,315 | 536,315 | |||||
BlackRock Temp Cash | 23,755 | 23,755 | |||||
Short-Term Investment Co.— | 48,064 | 48,064 | |||||
608,134 | |||||||
REPURCHASE AGREEMENTS3 – 8.79% |
| ||||||
Bank of America N.A. Repurchase Agreements, | $ | 2,866,041 | 2,866,041 | ||||
Merrill Lynch Government Securities Inc. | 2,101,764 | 2,101,764 | |||||
4,967,805 | |||||||
TIME DEPOSITS3 – 7.81% |
| ||||||
Abbey National Treasury Services PLC | 89,166 | 89,155 | |||||
Banco Bilbao Vizcaya Argentaria SA | 191,069 | 191,071 | |||||
BNP Paribas (New York) | 178,331 | 178,332 | |||||
Credit Suisse First Boston | 127,380 | 127,380 | |||||
Deutsche Bank AG | 212,130 | 212,130 | |||||
First Tennessee Bank | 318,449 | 318,449 | |||||
HBOS Treasury Services PLC | 208,903 | 208,902 | |||||
Key Bank N.A. | 764,278 | 764,278 | |||||
Natexis Banques | 222,914 | 222,915 | |||||
Norddeutsche Landesbank | 127,380 | 127,373 | |||||
Royal Bank of Scotland | 31,845 | 31,845 | |||||
Societe Generale | 12,738 | 12,738 | |||||
Toronto-Dominion Bank | 509,519 | 509,497 | |||||
UBS AG | 50,952 | 50,948 | |||||
Washington Mutual Bank | 585,946 | 585,946 | |||||
Wells Fargo Bank N.A. | 783,385 | 783,383 | |||||
4,414,342 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.60% |
| ||||||
Federal Home Loan Mortgage Corp. | 152,668 | 152,373 | |||||
Federal National Mortgage Association | 191,069 | 189,305 | |||||
341,678 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 26,411,968 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 146.64% | 82,829,706 | ||||||
Other Assets, Less Liabilities – (46.64%) | (26,344,263 | ) | |||||
NET ASSETS – 100.00% | $ | 56,485,443 | |||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
22 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 98.49% | |||||
AUSTRIA – 1.17% | |||||
Bank Austria Creditanstalt | 6,028 | $ | 588,093 | ||
Boehler-Uddeholm AG | 1,507 | 228,036 | |||
Erste Bank der Oesterreichischen Sparkassen AG | 19,865 | 1,086,354 | |||
Flughafen Wien AG | 274 | 21,349 | |||
Immofinanz Immobilien Anlage AG1 | 44,662 | 421,496 | |||
Mayr-Melnhof Karton AG | 1,233 | 219,717 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 1,064 | 253,508 | |||
OMV AG | 2,740 | 951,423 | |||
RHI AG1,2 | 3,973 | 123,981 | |||
Telekom Austria AG | 53,978 | 1,074,715 | |||
Voest-Alpine AG2 | 4,795 | 400,463 | |||
Wienerberger Baustoffindustrie AG2 | 11,645 | 580,410 | |||
5,949,545 | |||||
BELGIUM – 4.02% | |||||
AGFA-Gevaert NV | 14,933 | 528,436 | |||
Barco NV | 1,781 | 151,533 | |||
Bekaert NV | 2,740 | 232,946 | |||
Belgacom SA1 | 25,071 | 1,056,576 | |||
Cofinimmo2 | 1,043 | 172,084 | |||
Colruyt NV2 | 3,014 | 519,282 | |||
Compagnie Maritime Belge SA | 3,160 | 122,435 | |||
Delhaize Group2 | 11,782 | 930,511 | |||
Dexia Group2 | 102,750 | 2,446,751 | |||
Electrabel SA2 | 4,521 | 2,005,517 | |||
Euronav SA | 3,780 | 125,435 | |||
Fortis2 | 188,238 | 5,311,975 | |||
Groupe Bruxelles Lambert SA | 11,508 | 1,066,205 | |||
InBev | 29,181 | 1,118,233 | |||
KBC Groupe2 | 17,673 | 1,490,772 | |||
Mobistar SA1,2 | 4,670 | 419,344 | |||
Omega Pharma SA2 | 3,562 | 180,232 | |||
SA D’Ieteren NV2 | 548 | 124,893 | |||
Solvay SA2 | 10,686 | 1,246,070 | |||
UCB SA | 13,974 | 703,911 | |||
Umicore | 4,247 | 435,760 | |||
20,388,901 | |||||
FINLAND – 4.17% | |||||
Amer Group Ltd2 | 7,809 | 146,150 | |||
Elisa OYJ Class A1 | 22,057 | 395,244 | |||
Fortum OYJ2 | 55,348 | 1,063,790 | |||
KCI Konecranes OYJ2 | 2,877 | 130,412 | |||
Kesko OYJ Class B | 10,001 | 260,187 | |||
Kone OYJ Class B1,2 | 6,713 | 575,262 | |||
Metso OYJ2 | 19,317 | 362,812 | |||
Nokia OYJ | 715,003 | 11,654,447 | |||
Nokian Renkaat OYJ | 1,644 | 291,973 | |||
Orion-Yhtyma OYJ Class B | 9,453 | 150,569 | |||
Outokumpu OYJ2 | 16,303 | 297,547 | |||
Pohjola Group PLC Class D2 | 9,453 | 119,703 | |||
Rautaruukki OYJ2 | 17,459 | 243,329 | |||
Sampo OYJ Class A | 61,513 | 864,666 | |||
Stora Enso OYJ Class R | 104,120 | 1,589,342 | |||
TietoEnator OYJ2 | 14,111 | 512,647 | |||
UPM-Kymmene OYJ2 | 86,036 | 1,923,126 | |||
Uponor OYJ2 | 14,522 | 308,412 | |||
Wartsila OYJ Class B2 | 10,059 | 262,363 | |||
21,151,981 | |||||
FRANCE – 27.46% | |||||
Accor SA2 | 34,113 | 1,602,455 | |||
Air France – KLM2 | 17,947 | 341,607 | |||
Alcatel SA Class A1,2 | 194,540 | 2,543,493 | |||
ALSTOM1 | 713,927 | 663,342 | |||
Arcelor2 | 77,542 | 1,930,880 | |||
Atos Origin SA1 | 9,179 | 670,715 | |||
Autoroutes du Sud de la France2 | 12,604 | 662,337 | |||
AXA2 | 225,639 | 6,082,884 | |||
BNP Paribas SA2 | 127,410 | 9,267,648 | |||
Bouygues SA2 | 30,140 | 1,309,807 | |||
Business Objects SA1,2 | 11,234 | 313,140 | |||
Cap Gemini SA1 | 20,687 | 776,263 | |||
Carrefour SA | 91,927 | 4,825,863 | |||
CNP Assurances2 | 5,480 | 392,789 | |||
Compagnie de Saint-Gobain2 | 50,142 | 3,109,496 | |||
Compagnie Generale des Etablissements Michelin Class B2 | 23,153 | 1,656,462 | |||
Credit Agricole SA2 | 105,901 | 3,150,122 | |||
Dassault Systemes SA2 | 8,631 | 409,107 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MCSI EMU INDEX FUND
February 28, 2005
Security | Shares | Value | |||
Essilor International SA | 14,933 | $ | 1,050,530 | ||
Etablissements Economiques du Casino Guichard-Perrachon SA2 | 5,343 | 445,380 | |||
European Aeronautic Defense and Space Co.2 | 39,593 | 1,247,626 | |||
France Telecom | 236,051 | 7,143,748 | |||
Gecina SA | 4,521 | 486,077 | |||
Groupe Danone | 38,634 | 3,858,883 | |||
Hermes International2 | 1,233 | 269,715 | |||
Imerys SA2 | 5,343 | 436,160 | |||
Klepierre2 | 3,588 | 336,949 | |||
Lafarge SA2 | 27,674 | 2,890,894 | |||
Lagardere S.C.A.2 | 19,865 | 1,558,337 | |||
L’Air Liquide SA2 | 17,673 | 3,183,285 | |||
L’Oreal SA2 | 48,498 | 3,807,711 | |||
LVMH Moet Hennessy Louis Vuitton SA2 | 38,634 | 2,869,163 | |||
Pernod Ricard SA2 | 8,220 | 1,178,368 | |||
Pinault-Printemps-Redoute SA2 | 10,960 | 1,225,648 | |||
PSA Peugeot Citroen SA2 | 27,263 | 1,790,560 | |||
Publicis Groupe2 | 19,728 | 604,634 | |||
Renault SA2 | 29,592 | 2,686,680 | |||
Sagem SA2 | 26,304 | 621,480 | |||
Sanofi-Aventis2 | 155,769 | 12,488,303 | |||
Schneider Electric SA | 36,031 | 2,883,893 | |||
Societe BIC SA2 | 4,795 | 269,097 | |||
Societe Generale Class A2 | 53,704 | 5,688,464 | |||
Societe Television Francaise 12 | 19,454 | 633,162 | |||
Sodexho Alliance SA2 | 17,810 | 572,327 | |||
STMicroelectronics NV | 94,393 | 1,688,944 | |||
Suez SA2 | 127,547 | 3,462,175 | |||
Technip-Coflexip SA2 | 2,877 | 512,099 | |||
Thales SA2 | 13,289 | 603,259 | |||
Thomson2 | 36,579 | 989,027 | |||
Total SA2 | 91,379 | 21,747,641 | |||
Unibail Holding2 | 6,850 | 850,134 | |||
Valeo SA2 | 11,782 | 566,282 | |||
Veolia Environnement2 | 48,224 | 1,681,546 | |||
Vinci SA2 | 11,508 | 1,695,541 | |||
Vivendi Universal SA1 | 162,619 | 5,145,920 | |||
Zodiac SA2 | 6,819 | 328,468 | |||
139,206,520 | |||||
GERMANY – 19.11% | |||||
Adidas-Salomon AG2 | 7,124 | 1,073,072 | |||
Allianz AG2 | 49,183 | 6,242,366 | |||
ALTANA AG2 | 10,960 | 676,325 | |||
BASF AG2 | 82,748 | 6,210,102 | |||
Bayer AG2 | 106,038 | 3,715,788 | |||
Bayerische Hypo-und Vereinsbank AG1 | 102,750 | 2,514,943 | |||
Beiersdorf AG2 | 2,814 | 322,681 | |||
Celesio AG2 | 4,658 | 353,038 | |||
Commerzbank AG1,2 | 73,843 | 1,656,462 | |||
Continental AG2 | 21,372 | 1,586,062 | |||
DaimlerChrysler AG | 137,959 | 6,407,365 | |||
Deutsche Bank AG2 | 78,501 | 6,908,347 | |||
Deutsche Boerse AG | 17,399 | 1,295,605 | |||
Deutsche Lufthansa AG1,2 | 35,894 | 516,936 | |||
Deutsche Post AG | 78,638 | 1,894,500 | |||
Deutsche Telekom AG1,2 | 435,112 | 9,136,776 | |||
Douglas Holding AG2 | 6,439 | 250,336 | |||
E.ON AG2 | 99,462 | 8,970,819 | |||
EPCOS AG1,2 | 8,494 | 121,314 | |||
Fresenius Medical Care AG2 | 5,617 | 504,454 | |||
HeidelbergerCement AG2 | 10,452 | 691,315 | |||
Hypo Real Estate Holding AG1 | 21,509 | 882,194 | |||
Infineon Technologies AG1 | 103,435 | 1,081,880 | |||
KarstadtQuelle AG2 | 12,193 | 141,937 | |||
Linde AG2 | 13,974 | 964,516 | |||
MAN AG2 | 23,016 | 1,067,733 | |||
Merck KGaA2 | 7,809 | 602,741 | |||
METRO AG2 | 23,564 | 1,326,173 | |||
MLP AG2 | 13,289 | 224,899 | |||
Muenchener Rueckversicherungs-Gesellschaft AG2 | 29,455 | 3,647,759 | |||
Puma AG2 | 2,603 | 614,972 | |||
RWE AG2 | 66,993 | 4,077,127 | |||
SAP AG2 | 32,743 | 5,332,282 | |||
Schering AG2 | 26,578 | 1,947,363 | |||
Siemens AG2 | 127,821 | 10,049,152 | |||
Suedzucker AG2 | 8,494 | 181,520 | |||
ThyssenKrupp AG2 | 50,279 | 1,157,234 | |||
TUI AG2 | 26,578 | 694,277 | |||
Volkswagen AG2 | 36,579 | 1,813,460 | |||
96,855,825 |
24 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2005
Security | Shares | Value | |||
GREECE – 1.27% | |||||
Hellenic Telecommunications Organization SA ADR | 241,257 | $ | 2,291,942 | ||
National Bank of Greece SA ADR2 | 543,387 | 4,156,911 | |||
6,448,853 | |||||
IRELAND – 2.56% | |||||
Allied Irish Banks PLC | 139,192 | 3,002,293 | |||
Bank of Ireland | 156,043 | 2,624,257 | |||
CRH PLC | 86,995 | 2,442,250 | |||
DCC PLC | 13,700 | 327,325 | |||
DEPFA Bank PLC2 | 58,362 | 959,814 | |||
Eircom Group PLC | 72,199 | 206,042 | |||
Elan Corp. PLC1 | 63,157 | 544,066 | |||
Fyffes PLC | 53,567 | 161,402 | |||
Grafton Group PLC1 | 31,647 | 430,568 | |||
Greencore Group PLC | 33,017 | 143,308 | |||
Independent News & Media PLC | 98,777 | 305,490 | |||
Irish Life & Permanent PLC | 43,703 | 890,441 | |||
Kerry Group PLC Class A | 21,372 | 523,392 | |||
Kingspan Group PLC | 20,413 | 224,890 | |||
Ryanair Holdings PLC1 | 21,760 | 176,476 | |||
Waterford Wedgewood PLC1 | 402,722 | 27,797 | |||
Waterford Wedgewood PLC Restricted1 | 9,511 | 656 | |||
12,990,467 | |||||
ITALY – 11.27% | |||||
Alleanza Assicurazioni SpA2 | 75,487 | 1,028,028 | |||
Arnoldo Mondadori Editore SpA2 | 17,810 | 199,522 | |||
Assicurazioni Generali SpA2 | 152,481 | 5,116,562 | |||
Autogrill SpA1,2 | 24,797 | 389,705 | |||
Autostrade SpA | 48,361 | 1,346,106 | |||
Banca Antonveneta SpA1,2 | 37,675 | 1,110,676 | |||
Banca Fideuram SpA2 | 54,252 | 285,885 | |||
Banca Intesa SpA2 | 523,477 | 2,570,898 | |||
Banca Monte dei Paschi di Siena SpA2 | 179,396 | 611,972 | |||
Banca Nazionale del Lavoro SpA1,2 | 272,904 | 765,230 | |||
Banca Popolare di Milano Scrl2 | 62,883 | 547,548 | |||
Banca Popolare di Verona e Novara Scrl2 | 59,595 | 1,170,731 | |||
Banche Popolari Unite Scrl | 52,775 | 1,088,591 | |||
Benetton Group SpA2 | 6,302 | 77,878 | |||
Bulgari SpA2 | 19,317 | 240,507 | |||
Capitalia SpA2 | 238,946 | 1,221,085 | |||
Edison SpA1,2 | 142,754 | 298,059 | |||
Enel SpA2 | 585,812 | 5,649,101 | |||
ENI SpA2 | 419,905 | 10,980,010 | |||
Fiat SpA1,2 | 90,283 | 677,080 | |||
Fineco SpA1 | 31,377 | 280,293 | |||
Finmeccanica SpA2 | 1,051,338 | 1,082,903 | |||
Gruppo Editoriale L’Espresso SpA2 | 28,085 | 181,547 | |||
Italcementi SpA2 | 14,659 | 259,954 | |||
Luxottica Group SpA2 | 22,605 | 479,176 | |||
Mediaset SpA2 | 96,037 | 1,356,331 | |||
Mediobanca SpA2 | 76,583 | 1,298,102 | |||
Mediolanum SpA2 | 47,206 | 347,443 | |||
Pirelli SpA2 | 425,986 | 553,841 | |||
Riunione Adriatica di Sicurta SpA2 | 46,854 | 1,089,598 | |||
Sanpaolo IMI SpA2 | 174,949 | 2,566,015 | |||
Seat Pagine Gialle SpA1,2 | 722,538 | 323,204 | |||
Snam Rete Gas SpA | 126,451 | 740,615 | |||
Telecom Italia Media SpA1,2 | 240,321 | 122,971 | |||
Telecom Italia Mobile SpA2 | 193,307 | 1,330,399 | |||
Telecom Italia SpA2 | 1,292,458 | 5,039,411 | |||
Terna SpA Rights1,2 | 158,080 | 452,703 | |||
Tiscali SpA1,2 | 33,107 | 116,014 | |||
UniCredito Italiano SpA2 | 706,783 | 4,134,889 | |||
57,130,583 | |||||
NETHERLANDS – 14.54% | |||||
ABN AMRO Holding NV2 | 257,423 | 7,103,744 | |||
AEGON NV | 221,529 | 3,205,107 | |||
Akzo Nobel NV | 43,018 | 1,944,253 | |||
ASML Holding NV1,2 | 75,761 | 1,404,842 | |||
Corio NV | 5,069 | 282,590 | |||
DSM NV | 11,508 | 819,511 | |||
Euronext NV | 15,892 | 598,022 | |||
Getronics NV1,2 | 78,522 | 207,410 | |||
Hagemeyer NV1,2 | 84,529 | 243,473 | |||
Heineken NV | 40,004 | 1,368,900 | |||
IHC Caland NV | 4,795 | 318,869 | |||
ING Groep NV | 298,660 | 9,216,913 | |||
Koninklijke Ahold NV1 | 251,943 | 2,284,065 | |||
Koninklijke KPN NV | 345,788 | 3,355,156 | |||
Koninklijke Numico NV CVA1,2 | 24,426 | 988,866 | |||
Koninklijke Philips Electronics NV | 209,062 | 5,796,943 |
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2005
Security | Shares | Value | |||
Oce NV2 | 10,001 | $ | 165,935 | ||
QIAGEN NV1 | 21,646 | 274,963 | |||
Randstad Holdings NV | 6,987 | 311,427 | |||
Reed Elsevier NV | 106,997 | 1,610,535 | |||
Rodamco Europe NV | 6,165 | 497,942 | |||
Royal Dutch Petroleum Co.2 | 333,458 | 21,068,497 | |||
TPG NV | 61,102 | 1,712,911 | |||
Unilever NV CVA | 91,790 | 6,128,424 | |||
Vedior NV | 26,578 | 499,541 | |||
VNU NV | 37,812 | 1,186,486 | |||
Wereldhave NV | 2,466 | 260,059 | |||
Wolters Kluwer NV CVA | 44,662 | 865,519 | |||
73,720,903 | |||||
PORTUGAL – 1.10% | |||||
Banco BPI SA Registered | 67,881 | 282,019 | |||
Banco Comercial Portugues SA Class R2 | 348,528 | 976,125 | |||
Banco Espirito Santo SA | 22,215 | 396,306 | |||
Brisa-Auto Estradas de Portugal SA2 | 71,240 | 635,446 | |||
CIMPOR-Cimentos de Portugal SGPS SA | 50,279 | 290,310 | |||
Energias de Portugal SA | 339,623 | 996,265 | |||
Jeronimo Martins SGPS SA1 | 7,124 | 103,071 | |||
Portugal Telecom SGPS SA2 | 113,847 | 1,385,723 | |||
PT Multimedia-Servicos de Telecomunicacoes e Multimedia SGPS SA | 8,357 | 219,635 | |||
Sonae SGPS SA | 174,164 | 272,788 | |||
5,557,688 | |||||
SPAIN – 11.82% | |||||
Abertis Infraestructuras SA2 | 40,552 | 964,036 | |||
Acciona SA2 | 3,836 | 360,239 | |||
Acerinox SA2 | 31,373 | 545,523 | |||
Actividades de Construcciones y Servicios SA2 | 43,155 | 1,103,247 | |||
Altadis SA2 | 44,799 | 1,887,981 | |||
Amadeus Global Travel Distribution SA Class A | 51,238 | 491,718 | |||
Antena 3 de Television SA1,2 | 3,484 | 268,220 | |||
Banco Bilbao Vizcaya Argentaria SA | 517,723 | 8,981,699 | |||
Banco Popular Espanol SA | 26,304 | 1,826,034 | |||
Banco Santander Central Hispano SA2 | 955,438 | 11,870,358 | |||
Cintra Concesiones de Infraestructuras de Transporte SA1 | 37,538 | 428,504 | |||
Corporacion Mapfre SA2 | 19,319 | 312,845 | |||
Endesa SA2 | 153,303 | 3,477,588 | |||
Fomento de Construcciones y Contratas SA | 7,124 | 368,029 | |||
Gamesa Corporacion Tecnologica SA2 | 21,372 | 297,298 | |||
Gas Natural SDG SA2 | 25,071 | 744,096 | |||
Grupo Ferrovial SA2 | 10,412 | 622,469 | |||
Iberdrola SA | 122,204 | 3,231,173 | |||
Iberia Lineas Aereas de Espana SA2 | 73,843 | 258,761 | |||
Indra Sistemas SA2 | 18,632 | 323,237 | |||
Industria de Diseno Textil SA2 | 35,757 | 1,106,815 | |||
Metrovacesa SA | 7,398 | 384,934 | |||
NH Hoteles SA2 | 21,098 | 303,288 | |||
Promotora de Informaciones SA2 | 13,563 | 286,065 | |||
Repsol YPF SA2 | 149,878 | 4,090,218 | |||
Sacyr Vallehermoso SA | 16,577 | 305,408 | |||
Sociedad General de Aguas de Barcelona SA1,2 | 91 | 1,933 | |||
Sociedad General de Aguas de Barcelona SA Class B | 10,686 | 229,073 | |||
Sogecable SA1,2 | 6,439 | 260,079 | |||
Telefonica Publicidad e Informacion SA2 | 24,934 | 238,623 | |||
Telefonica SA | 707,742 | 13,057,957 | |||
Union Fenosa SA2 | 35,483 | 1,022,034 | |||
Zeltia SA2 | 28,085 | 251,631 | |||
59,901,113 | |||||
TOTAL COMMON STOCKS | 499,302,379 | ||||
PREFERRED STOCKS – 1.29% | |||||
GERMANY– 0.62% | |||||
Fresenius Medical Care AG2 | 3,836 | 243,893 | |||
Henkel KGaA2 | 9,316 | 835,296 | |||
Porsche AG2 | 1,233 | 892,467 | |||
ProSiebenSat.1 Media AG2 | 12,193 | 243,251 | |||
RWE AG | 5,891 | 308,085 | |||
Volkswagen AG | 16,988 | 623,931 | |||
3,146,923 |
26 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
ITALY – 0.67% | ||||||
Banca Intesa SpA RNC2 | $ | 150,426 | $ | 668,888 | ||
Telecom Italia SpA RNC2 | 864,470 | 2,736,678 | ||||
3,405,566 | ||||||
TOTAL PREFERRED STOCKS | 6,552,489 | |||||
SHORT-TERM INVESTMENTS – 35.17% | ||||||
COMMERCIAL PAPER3 – 8.27% | ||||||
Amstel Funding Corp. | $ | 357,233 | 352,227 | |||
Amsterdam Funding Corp. | 945,379 | 944,998 | ||||
ANZ National Bank Ltd. | 429,718 | 423,867 | ||||
Barton Capital Corp. | 1,901,562 | 1,900,027 | ||||
Blue Ridge Asset Funding Corp. | 945,379 | 943,918 | ||||
Bryant Park Funding LLC | 85,944 | 85,854 | ||||
Chariot Funding LLC | 859,436 | 858,223 | ||||
Chesham Finance LLC | 343,774 | 343,701 | ||||
Corporate Asset Funding | 429,718 | 429,018 | ||||
CRC Funding LLC | 214,859 | 214,708 | ||||
Delaware Funding Corp. | 1,593,755 | 1,591,987 | ||||
DEPFA Bank PLC | 429,718 | 428,007 | ||||
Edison Asset Securitization | 2,793,166 | 2,788,125 | ||||
Fairway Finance LLC | 819,317 | 818,429 | ||||
Falcon Asset Securitization Corp. | 3,313,658 | 3,309,788 | ||||
Ford Credit Auto Receivables | 1,995,610 | 1,991,943 | ||||
Ford Credit Floorplan Motown | 1,074,295 | 1,073,854 | ||||
Fortis Funding LLC | 1,203,210 | 1,197,791 | ||||
General Electric Capital Corp. | 1,890,759 | 1,885,854 | ||||
Giro Funding US Corp. | 1,036,058 | 1,034,954 | ||||
Grampian Funding LLC | 2,535,336 | 2,504,150 | ||||
Jupiter Securitization Corp. | 3,921,004 | 3,917,448 | ||||
Kitty Hawk Funding Corp. | 1,289,154 | 1,287,883 | ||||
Liberty Street Funding Corp. | 472,690 | 472,227 | ||||
Moat Funding LLC | 171,887 | 171,625 | ||||
Nordea North America Inc. | 429,718 | 425,401 | ||||
Park Avenue Receivables Corp. | 1,342,456 | 1,341,546 | ||||
Park Granada LLC | 601,605 | 600,838 | ||||
Preferred Receivables Funding Corp. | 1,826,121 | 1,823,596 | ||||
Ranger Funding Co. LLC | 255,570 | 255,516 |
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Santander Central Hispano | $ | 1,074,295 | $ | 1,063,728 | ||
Scaldis Capital LLC | 215,100 | 212,980 | ||||
Ticonderoga Master Funding Ltd. | 1,457,500 | 1,455,365 | ||||
Tulip Funding Corp. | 1,434,622 | 1,434,623 | ||||
UBS Finance (Delaware) | 1,718,872 | 1,718,872 | ||||
Windmill Funding Corp. | 300,803 | 300,653 | ||||
Yorktown Capital LLC | 300,803 | 300,464 | ||||
41,904,188 | ||||||
FLOATING RATE NOTES3 – 12.97% | ||||||
Allstate Life Global Funding II | 395,340 | 395,354 | ||||
American Express Centurion Bank | 1,289,154 | 1,289,154 | ||||
American Express Credit Corp. | 1,718,872 | 1,719,438 | ||||
Bank of Nova Scotia | 558,633 | 558,489 | ||||
Beta Finance Inc. | 3,222,884 | 3,223,139 | ||||
Canadian Imperial Bank of Commerce | 2,922,082 | 2,921,509 | ||||
CC USA Inc. | 1,718,872 | 1,718,736 | ||||
Commodore CDO Ltd. | 214,859 | 214,859 | ||||
Den Danske Bank NY | 2,578,307 | 2,577,904 | ||||
DEPFA Bank PLC | 859,436 | 859,436 | ||||
Dorada Finance Inc. | 713,332 | 713,244 | ||||
Fairway Finance LLC | 1,289,154 | 1,289,141 | ||||
Fifth Third Bancorp | 1,718,872 | 1,718,872 | ||||
Five Finance Inc. | 1,117,267 | 1,117,312 | ||||
General Electric Capital Corp. | 386,746 | 387,284 | ||||
General Electric Commercial Equipment Financing LLC | 367,047 | 367,047 | ||||
Hartford Life Global Funding Trust | 859,436 | 859,436 | ||||
HBOS Treasury Services PLC | 2,578,307 | 2,578,308 | ||||
K2 USA LLC | 3,867,461 | 3,867,506 | ||||
Leafs LLC | 902,408 | 902,408 | ||||
Links Finance LLC | 3,523,687 | 3,524,587 | ||||
Lothian Mortgages PLC | 1,718,872 | 1,718,872 | ||||
MetLife Funding Inc. | 1,289,154 | 1,289,154 | ||||
National City Bank (Ohio) | 2,148,589 | 2,148,432 | ||||
Nationwide Building Society | 3,179,912 | 3,180,583 | ||||
Norddeutsche Landesbank | 859,436 | 859,313 |
28 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Northern Rock PLC | $ | 2,578,307 | $ | 2,578,308 | ||
Permanent Financing PLC | 2,320,477 | 2,320,478 | ||||
Sedna Finance Inc. | 472,690 | 472,592 | ||||
Sigma Finance Inc. | 4,383,123 | 4,383,334 | ||||
Tango Finance Corp. | 2,644,484 | 2,644,374 | ||||
Wachovia Asset Securitization Inc. | 2,578,307 | 2,578,308 | ||||
Wells Fargo & Co. | 429,718 | 429,780 | ||||
WhistleJacket Capital LLC | 3,008,025 | 3,007,764 | ||||
White Pine Finance LLC | 4,701,114 | 4,700,766 | ||||
Winston Funding Ltd. | 613,637 | 613,637 | ||||
65,728,858 | ||||||
MEDIUM-TERM NOTES3 – 0.17% | ||||||
CC USA Inc. | 859,436 | 859,426 | ||||
859,426 | ||||||
MONEY MARKET FUNDS3 – 0.83% | ||||||
Barclays Global Investors Funds | 3,717,900 | 3,717,900 | ||||
BlackRock Temp Cash | 160,278 | 160,278 | ||||
Short-Term Investment Co.— | 324,287 | 324,287 | ||||
4,202,465 | ||||||
REPURCHASE AGREEMENTS3 – 6.61% | ||||||
Bank of America N.A. Repurchase Agreements, | 19,337,305 | 19,337,305 | ||||
Merrill Lynch Government Securities Inc. | 14,180,691 | 14,180,691 | ||||
33,517,996 | ||||||
TIME DEPOSITS3 – 5.87% | ||||||
Abbey National Treasury Services PLC | 601,605 | 601,581 | ||||
Banco Bilbao Vizcaya Argentaria SA | 1,289,154 | 1,289,156 | ||||
BNP Paribas (New York) | 1,203,210 | 1,203,210 | ||||
Credit Suisse First Boston | 859,436 | 859,436 | ||||
Deutsche Bank AG | 1,431,250 | 1,431,250 | ||||
First Tennessee Bank | 2,148,589 | 2,148,590 | ||||
HBOS Treasury Services PLC | 1,409,475 | 1,409,470 | ||||
Key Bank N.A. | 5,156,615 | 5,156,615 | ||||
Natexis Banques | 1,504,013 | 1,504,013 | ||||
Norddeutsche Landesbank | 859,436 | 859,390 | ||||
Royal Bank of Scotland | 214,859 | 214,859 | ||||
Societe Generale | 85,944 | 85,944 |
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Toronto-Dominion Bank | $ | 3,437,743 | $ | 3,437,594 | |||
UBS AG | 343,774 | 343,751 | |||||
Washington Mutual Bank | 3,953,404 | 3,953,404 | |||||
Wells Fargo Bank N.A. | 5,285,530 | 5,285,518 | |||||
29,783,781 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.45% |
| ||||||
Federal Home Loan Mortgage Corp. | 1,030,060 | 1,028,066 | |||||
Federal National Mortgage Association | 1,289,154 | 1,277,248 | |||||
2,305,314 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 178,302,028 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 134.95% | 684,156,896 | ||||||
Other Assets, Less Liabilities – (34.95%) | (177,188,492 | ) | |||||
NET ASSETS – 100.00% | $ | 506,968,404 | |||||
ADR – American Depositary Receipts
1 | Non-income earning security. |
2 | All or a portion of this security represents a security on loan. See Note 5. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
30 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.83% | |||||
ADVERTISING – 0.45% | |||||
Publicis Groupe1 | 7,931 | $ | 243,073 | ||
243,073 | |||||
AEROSPACE & DEFENSE – 1.93% | |||||
European Aeronautic Defense and Space Co.1 | 14,960 | 471,409 | |||
Sagem SA1 | 10,340 | 244,301 | |||
Thales SA1 | 4,829 | 219,214 | |||
Zodiac SA1 | 2,365 | 113,921 | |||
1,048,845 | |||||
AIRLINES – 0.27% | |||||
Air France - KLM1 | 7,579 | 144,260 | |||
144,260 | |||||
APPAREL – 0.23% | |||||
Hermes International1 | 561 | 122,717 | |||
122,717 | |||||
AUTO MANUFACTURERS – 3.20% | |||||
PSA Peugeot Citroen SA1 | 10,527 | 691,385 | |||
Renault SA1 | 11,506 | 1,044,638 | |||
1,736,023 | |||||
AUTO PARTS & EQUIPMENT – 1.57% | |||||
Compagnie Generale des Etablissements Michelin Class B1 | 8,866 | 634,311 | |||
Valeo SA1 | 4,565 | 219,409 | |||
853,720 | |||||
BANKS – 12.92% | |||||
BNP Paribas SA1 | 49,324 | 3,587,768 | |||
Credit Agricole SA1 | 41,206 | 1,225,710 | |||
Societe Generale Class A1 | 20,680 | 2,190,478 | |||
7,003,956 | |||||
BEVERAGES – 0.83% | |||||
Pernod Ricard SA1 | 3,157 | 452,568 | |||
452,568 | |||||
BUILDING MATERIALS – 4.52% | |||||
Compagnie de Saint-Gobain1 | 19,195 | 1,190,355 | |||
Imerys SA1 | 1,969 | 160,734 | |||
Lafarge SA | 10,538 | 1,100,825 | |||
2,451,914 | |||||
CHEMICALS – 2.24% | |||||
L’Air Liquide SA1 | 6,754 | 1,216,540 | |||
1,216,540 | |||||
COMMERCIAL SERVICES – 0.42% | |||||
Autoroutes du Sud de la France1 | 4,323 | 227,173 | |||
227,173 | |||||
COMPUTERS – 1.01% | |||||
Atos Origin SA2 | 3,509 | 256,405 | |||
Cap Gemini SA1,2 | 7,788 | 292,238 | |||
548,643 | |||||
COSMETICS & PERSONAL CARE – 2.74% | |||||
L’Oreal SA1 | 18,887 | 1,482,870 | |||
1,482,870 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.42% | |||||
Euronext NV | 6,094 | 229,320 | |||
229,320 | |||||
ENGINEERING & CONSTRUCTION – 2.22% | |||||
Bouygues SA1 | 12,342 | 536,352 | |||
Vinci SA1 | 4,521 | 666,105 | |||
1,202,457 | |||||
FOOD – 6.50% | |||||
Carrefour SA1 | 35,552 | 1,866,362 | |||
Etablissements Economiques du Casino Guichard-Perrachon SA1 | 1,958 | 163,214 | |||
Groupe Danone1 | 14,982 | 1,496,448 | |||
3,526,024 | |||||
FOOD SERVICE – 0.36% | |||||
Sodexho Alliance SA1 | 6,016 | 193,325 | |||
193,325 | |||||
HAND & MACHINE TOOLS – 2.03% | |||||
Schneider Electric SA1 | 13,761 | 1,101,420 | |||
1,101,420 | |||||
HEALTH CARE - PRODUCTS – 0.79% | |||||
Essilor International SA1 | 6,072 | 427,163 | |||
427,163 | |||||
HOLDING COMPANIES - DIVERSIFIED – 2.08% | |||||
LVMH Moet Hennessy Louis Vuitton SA | 15,213 | 1,129,797 | |||
1,129,797 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
HOME FURNISHINGS – 0.73% | ||||||
Thomson1 | 14,707 | $ | 397,650 | |||
397,650 | ||||||
HOUSEHOLD PRODUCTS & WARES – 0.20% | ||||||
Societe BIC SA1 | 1,903 | 106,797 | ||||
106,797 | ||||||
INSURANCE – 4.66% | ||||||
AXA1 | 87,945 | 2,370,863 | ||||
CNP Assurances1 | 2,145 | 153,747 | ||||
2,524,610 | ||||||
IRON & STEEL – 1.36% | ||||||
Arcelor1 | 29,667 | 738,741 | ||||
738,741 | ||||||
LODGING – 1.05% | ||||||
Accor SA1 | 12,100 | 568,397 | ||||
568,397 | ||||||
MACHINERY – DIVERSIFIED – 0.47% | ||||||
ALSTOM2 | 271,502 | 252,265 | ||||
252,265 | ||||||
MEDIA – 5.25% | ||||||
Lagardere S.C.A.1 | 7,799 | 611,803 | ||||
Societe Television Francaise 11 | 7,271 | 236,647 | ||||
Vivendi Universal SA2 | 63,184 | 1,999,396 | ||||
2,847,846 | ||||||
OIL & GAS – 15.54% | ||||||
Total SA1 | 35,409 | 8,427,124 | ||||
8,427,124 | ||||||
OIL & GAS SERVICES – 0.39% | ||||||
Technip-Coflexip SA1 | 1,188 | 211,461 | ||||
211,461 | ||||||
PHARMACEUTICALS – 8.96% | ||||||
Sanofi-Aventis | 60,599 | 4,858,339 | ||||
4,858,339 | ||||||
REAL ESTATE – 1.24% | ||||||
Gecina SA1 | 1,980 | 212,880 | ||||
Klepierre | 1,419 | 133,258 | ||||
Unibail Holding1 | 2,629 | 326,278 | ||||
672,416 | ||||||
RETAIL – 0.86% | ||||||
Pinault-Printemps-Redoute SA1 | 4,158 | 464,986 | ||||
464,986 | ||||||
SEMICONDUCTORS – 1.20% | ||||||
STMicroelectronics NV | 36,355 | 650,488 | ||||
650,488 | ||||||
SOFTWARE – 0.52% | ||||||
Business Objects SA1,2 | 4,180 | 116,515 | ||||
Dassault Systemes SA1 | 3,454 | 163,718 | ||||
280,233 | ||||||
TELECOMMUNICATIONS – 6.96% | ||||||
Alcatel SA Class A1,2 | 75,856 | 991,772 | ||||
France Telecom | 91,894 | 2,781,041 | ||||
3,772,813 | ||||||
WATER – 3.71% | ||||||
Suez SA1 | 49,907 | 1,354,691 | ||||
Veolia Environnement1 | 18,755 | 653,977 | ||||
2,008,668 | ||||||
TOTAL COMMON STOCKS | 54,124,642 | |||||
SHORT-TERM INVESTMENTS – 37.26% | ||||||
COMMERCIAL PAPER3 – 8.77% | ||||||
Amstel Funding Corp. | $ | 40,536 | 39,968 | |||
Amsterdam Funding Corp. | 107,273 | 107,230 | ||||
ANZ National Bank Ltd. | 48,760 | 48,097 | ||||
Barton Capital Corp. | 215,772 | 215,597 | ||||
Blue Ridge Asset Funding Corp. | 107,273 | 107,107 | ||||
Bryant Park Funding LLC | 9,752 | 9,742 | ||||
Chariot Funding LLC | 97,521 | 97,383 | ||||
Chesham Finance LLC | 39,008 | 39,000 |
32 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Corporate Asset Funding | $ | 48,760 | $ | 48,681 | ||
CRC Funding LLC | 24,380 | 24,363 | ||||
Delaware Funding Corp. | 180,845 | 180,644 | ||||
DEPFA Bank PLC | 48,760 | 48,567 | ||||
Edison Asset Securitization | 316,943 | 316,371 | ||||
Fairway Finance LLC | 92,969 | 92,867 | ||||
Falcon Asset Securitization Corp. | 376,003 | 375,564 | ||||
Ford Credit Auto Receivables | 226,443 | 226,027 | ||||
Ford Credit Floorplan Motown | 121,901 | 121,851 | ||||
Fortis Funding LLC | 136,529 | 135,914 | ||||
General Electric Capital Corp. | 214,546 | 213,989 | ||||
Giro Funding US Corp. | 117,562 | 117,438 | ||||
Grampian Funding LLC | 287,687 | 284,148 | ||||
Jupiter Securitization Corp. | 444,919 | 444,516 | ||||
Kitty Hawk Funding Corp. | 146,281 | 146,137 | ||||
Liberty Street Funding Corp. | 53,636 | 53,584 | ||||
Moat Funding LLC | 19,504 | 19,474 | ||||
Nordea North America Inc. | 48,760 | 48,271 | ||||
Park Avenue Receivables Corp. | 152,330 | 152,227 | ||||
Park Granada LLC | 68,265 | 68,178 | ||||
Preferred Receivables Funding Corp. | 207,211 | 206,925 | ||||
Ranger Funding Co. LLC | 29,000 | 28,994 | ||||
Santander Central Hispano | 121,901 | 120,702 | ||||
Scaldis Capital LLC | 24,408 | 24,168 | ||||
Ticonderoga Master Funding Ltd. | 165,384 | 165,142 | ||||
Tulip Funding Corp. | 162,788 | 162,788 | ||||
UBS Finance (Delaware) | 195,042 | 195,042 | ||||
Windmill Funding Corp. | 34,132 | 34,115 | ||||
Yorktown Capital LLC | 34,132 | 34,094 | ||||
4,754,905 | ||||||
FLOATING RATE NOTES3 – 13.76% | ||||||
Allstate Life Global Funding | 44,860 | 44,862 | ||||
American Express Centurion Bank | 146,281 | 146,281 | ||||
American Express Credit Corp. | 195,042 | 195,106 | ||||
Bank of Nova Scotia | 63,389 | 63,372 |
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Beta Finance Inc. | $ | 365,703 | $ | 365,732 | ||
Canadian Imperial Bank of Commerce | 331,571 | 331,506 | ||||
CC USA Inc. | 195,042 | 195,026 | ||||
Commodore CDO Ltd. | 24,380 | 24,380 | ||||
Den Danske Bank NY | 292,563 | 292,518 | ||||
DEPFA Bank PLC | 97,521 | 97,521 | ||||
Dorada Finance Inc. | 80,942 | 80,932 | ||||
Fairway Finance LLC | 146,281 | 146,280 | ||||
Fifth Third Bancorp | 195,042 | 195,042 | ||||
Five Finance Inc. | 126,777 | 126,782 | ||||
General Electric Capital Corp. | 43,884 | 43,945 | ||||
General Electric Commercial Equipment Financing LLC | 41,649 | 41,649 | ||||
Hartford Life Global Funding Trust | 97,521 | 97,521 | ||||
HBOS Treasury Services PLC | 292,563 | 292,563 | ||||
K2 USA LLC | 438,844 | 438,850 | ||||
Leafs LLC | 102,397 | 102,397 | ||||
Links Finance LLC | 399,836 | 399,937 | ||||
Lothian Mortgages PLC | 195,042 | 195,042 | ||||
MetLife Funding Inc. | 146,281 | 146,281 | ||||
National City Bank (Ohio) | 243,802 | 243,785 | ||||
Nationwide Building Society | 360,827 | 360,903 | ||||
Norddeutsche Landesbank | 97,521 | 97,507 | ||||
Northern Rock PLC | 292,563 | 292,563 | ||||
Permanent Financing PLC | 263,306 | 263,306 | ||||
Sedna Finance Inc. | 53,636 | 53,625 | ||||
Sigma Finance Inc. | 497,356 | 497,380 | ||||
Tango Finance Corp. | 300,072 | 300,059 | ||||
Wachovia Asset Securitization Inc. | 292,563 | 292,562 | ||||
Wells Fargo & Co. | 48,760 | 48,767 | ||||
WhistleJacket Capital LLC | 341,323 | 341,294 | ||||
White Pine Finance LLC | 533,439 | 533,400 |
34 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Winston Funding Ltd. | $ | 69,630 | $ | 69,630 | ||
7,458,306 | ||||||
MEDIUM-TERM NOTES3 – 0.18% | ||||||
CC USA Inc. | 97,521 | 97,520 | ||||
97,520 | ||||||
MONEY MARKET FUNDS3 – 0.83% | ||||||
Barclays Global Investors Funds | 393,714 | 393,714 | ||||
BlackRock Temp Cash Money | 18,187 | 18,187 | ||||
Short-Term Investment Co. – Prime | 36,797 | 36,797 | ||||
448,698 | ||||||
REPURCHASE AGREEMENTS3 – 7.01% | ||||||
Bank of America N.A. Repurchase | $ | 2,194,220 | 2,194,220 | |||
Merrill Lynch Government Securities | 1,609,095 | 1,609,095 | ||||
3,803,315 | ||||||
TIME DEPOSITS3 – 6.23% | ||||||
Abbey National Treasury Services PLC | 68,265 | 68,255 | ||||
Banco Bilbao Vizcaya Argentaria SA | 146,281 | 146,282 | ||||
BNP Paribas (New York) | 136,529 | 136,529 | ||||
Credit Suisse First Boston | 97,521 | 97,521 | ||||
Deutsche Bank AG | 162,405 | 162,405 | ||||
First Tennessee Bank | 243,802 | 243,802 | ||||
HBOS Treasury Services PLC | 159,934 | 159,934 | ||||
Key Bank N.A. | 585,125 | 585,125 | ||||
Natexis Banques | 170,662 | 170,662 | ||||
Norddeutsche Landesbank | 97,521 | 97,516 | ||||
Royal Bank of Scotland | 24,380 | 24,380 | ||||
Societe Generale | 9,752 | 9,752 | ||||
Toronto-Dominion Bank | 390,083 | 390,066 | ||||
UBS AG | 39,008 | 39,006 | ||||
Washington Mutual Bank | 448,596 | 448,596 | ||||
Wells Fargo Bank N.A. | 599,753 | 599,752 | ||||
3,379,583 | ||||||
U.S. GOVERNMENT AGENCY NOTES 3 – 0.48% | ||||||
Federal Home Loan Mortgage Corp. | 116,882 | 116,656 |
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Federal National Mortgage Association | $ | 146,281 | $ | 144,930 | |||
261,586 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 20,203,913 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 137.09% | 74,328,555 | ||||||
Other Assets, Less Liabilities – (37.09%) | (20,111,726 | ) | |||||
NET ASSETS – 100.00% | $ | 54,216,829 | |||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
36 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 96.27% | |||||
AIRLINES – 0.59% | |||||
Deutsche Lufthansa AG1,2 | 63,706 | $ | 917,478 | ||
917,478 | |||||
APPAREL – 1.78% | |||||
Adidas-Salomon AG2 | 11,732 | 1,767,164 | |||
Puma AG2 | 4,256 | 1,005,501 | |||
2,772,665 | |||||
AUTO MANUFACTURERS – 8.29% | |||||
DaimlerChrysler AG2 | 216,748 | 10,066,639 | |||
Volkswagen AG2 | 57,428 | 2,847,081 | |||
12,913,720 | |||||
AUTO PARTS & EQUIPMENT – 1.54% | |||||
Continental AG2 | 32,256 | 2,393,787 | |||
2,393,787 | |||||
BANKS – 12.97% | |||||
Bayerische Hypo-und Vereinsbank AG1 | 157,220 | 3,848,169 | |||
Commerzbank AG1,2 | 117,488 | 2,635,516 | |||
DEPFA Bank PLC | 87,024 | 1,431,185 | |||
Deutsche Bank AG2 | 123,760 | 10,891,289 | |||
Hypo Real Estate Holding AG1 | 33,740 | 1,383,850 | |||
20,190,009 | |||||
BIOTECHNOLOGY – 0.21% | |||||
QIAGEN NV1 | 25,172 | 319,753 | |||
319,753 | |||||
BUILDING MATERIALS – 0.63% | |||||
HeidelbergerCement AG2 | 14,896 | 985,249 | |||
985,249 | |||||
CHEMICALS – 9.51% | |||||
BASF AG | 118,104 | 8,863,513 | |||
Bayer AG | 169,652 | 5,944,952 | |||
14,808,465 | |||||
COSMETICS & PERSONAL CARE – 0.39% | |||||
Beiersdorf AG2 | 5,264 | 603,622 | |||
603,622 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.60% | |||||
Deutsche Boerse AG2 | 29,400 | 2,189,251 | |||
MLP AG2 | 18,284 | 309,433 | |||
2,498,684 | |||||
ELECTRIC – 12.82% | |||||
E.ON AG2 | 153,300 | 13,826,653 | |||
RWE AG2 | 100,688 | 6,127,771 | |||
19,954,424 | |||||
ELECTRONICS – 0.12% | |||||
EPCOS AG1,2 | 12,964 | 185,156 | |||
185,156 | |||||
ENGINEERING & CONSTRUCTION – 1.06% | |||||
Linde AG2 | 23,996 | 1,656,257 | |||
1,656,257 | |||||
FOOD – 1.66% | |||||
METRO AG2 | 39,480 | 2,221,920 | |||
Suedzucker AG2 | 17,304 | 369,792 | |||
2,591,712 | |||||
HEALTH CARE-PRODUCTS – 0.55% | |||||
Fresenius Medical Care AG2 | 9,576 | 860,006 | |||
860,006 | |||||
INSURANCE – 8.71% | |||||
Allianz AG2 | 60,928 | 7,733,055 | |||
Muenchener Rueckversicherungs-Gesellschaft AG2 | 47,124 | 5,835,919 | |||
13,568,974 | |||||
IRON & STEEL – 1.24% | |||||
ThyssenKrupp AG2 | 83,552 | 1,923,054 | |||
1,923,054 | |||||
LEISURE TIME – 0.54% | |||||
TUI AG2 | 32,256 | 842,599 | |||
842,599 | |||||
MACHINERY – DIVERSIFIED – 0.86% | |||||
MAN AG | 28,924 | 1,341,810 | |||
1,341,810 | |||||
MANUFACTURING – 10.07% | |||||
Siemens AG2 | 199,528 | 15,686,680 | |||
15,686,680 | |||||
PHARMACEUTICALS – 3.92% | |||||
ALTANA AG2 | 18,732 | 1,155,924 | |||
Celesio AG2 | 10,052 | 761,858 | |||
Merck KGaA2 | 13,160 | 1,015,760 | |||
Schering AG2 | 43,176 | 3,163,493 | |||
6,097,035 |
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® GERMANY INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
RETAIL – 0.34% | ||||||
Douglas Holding AG2 | 8,848 | $ | 343,993 | |||
KarstadtQuelle AG2 | 16,220 | 188,815 | ||||
532,808 | ||||||
SEMICONDUCTORS – 1.08% | ||||||
Infineon Technologies AG1 | 161,000 | 1,683,982 | ||||
1,683,982 | ||||||
SOFTWARE – 4.88% | ||||||
SAP AG2 | 46,676 | 7,601,307 | ||||
7,601,307 | ||||||
TELECOMMUNICATIONS – 9.05% | ||||||
Deutsche Telekom AG1 | 670,824 | 14,086,416 | ||||
14,086,416 | ||||||
TRANSPORTATION – 1.86% | ||||||
Deutsche Post AG | 119,896 | 2,888,463 | ||||
2,888,463 | ||||||
TOTAL COMMON STOCKS | 149,904,115 | |||||
PREFERRED STOCKS – 3.66% | ||||||
AUTO MANUFACTURERS – 1.58% | ||||||
Porsche AG2 | 1,988 | 1,438,949 | ||||
Volkswagen AG | 27,972 | 1,027,349 | ||||
2,466,298 | ||||||
ELECTRIC – 0.49% | ||||||
RWE AG | 14,476 | 757,060 | ||||
757,060 | ||||||
HEALTH CARE-PRODUCTS – 0.30% | ||||||
Fresenius Medical Care AG2 | 7,420 | 471,764 | ||||
471,764 | ||||||
HOUSEHOLD PRODUCTS & WARES – 1.02% | ||||||
Henkel KGaA2 | 17,752 | 1,591,689 | ||||
1,591,689 | ||||||
MEDIA – 0.27% | ||||||
ProSiebenSat.1 Media AG2 | 20,752 | 414,004 | ||||
414,004 | ||||||
TOTAL PREFERRED STOCKS | 5,700,815 | |||||
SHORT-TERM INVESTMENTS – 36.28% | ||||||
COMMERCIAL PAPER3 – 8.53% | ||||||
Amstel Funding Corp. | $ | 113,217 | 111,630 | |||
Amsterdam Funding Corp. | 299,616 | 299,495 | ||||
ANZ National Bank Ltd. | 136,189 | 134,335 | ||||
Barton Capital Corp. | 602,655 | 602,169 | ||||
Blue Ridge Asset Funding Corp. | 299,616 | 299,152 | ||||
Bryant Park Funding LLC | 27,238 | 27,210 | ||||
Chariot Funding LLC | 272,378 | 271,993 | ||||
Chesham Finance LLC | 108,951 | 108,928 | ||||
Corporate Asset Funding | 136,189 | 135,967 | ||||
CRC Funding LLC | 68,094 | 68,047 | ||||
Delaware Funding Corp. | 505,103 | 504,543 | ||||
DEPFA Bank PLC | 136,189 | 135,647 | ||||
Edison Asset Securitization | 885,228 | 883,630 | ||||
Fairway Finance LLC | 259,663 | 259,381 | ||||
Falcon Asset Securitization Corp. | 1,050,185 | 1,048,959 | ||||
Ford Credit Auto Receivables | 632,461 | 631,300 |
38 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Ford Credit Floorplan Motown | $ | 340,472 | $ | 340,332 | ||
Fortis Funding LLC | 381,329 | 379,611 | ||||
General Electric Capital Corp. | 599,231 | 597,676 | ||||
Giro Funding US Corp. | 328,354 | 328,005 | ||||
Grampian Funding LLC | 803,514 | 793,631 | ||||
Jupiter Securitization Corp. | 1,242,669 | 1,241,543 | ||||
Kitty Hawk Funding Corp. | 408,567 | 408,164 | ||||
Liberty Street Funding Corp. | 149,808 | 149,661 | ||||
Moat Funding LLC | 54,476 | 54,392 | ||||
Nordea North America Inc. | 136,189 | 134,821 | ||||
Park Avenue Receivables Corp. | 425,460 | 425,171 | ||||
Park Granada LLC | 190,664 | 190,421 | ||||
Preferred Receivables Funding Corp. | 578,746 | 577,946 | ||||
Ranger Funding Co. LLC | 80,997 | 80,980 | ||||
Santander Central Hispano | 340,472 | 337,123 | ||||
Scaldis Capital LLC | 68,171 | 67,499 | ||||
Ticonderoga Master Funding Ltd. | 461,920 | 461,244 | ||||
Tulip Funding Corp. | 454,669 | 454,670 | ||||
UBS Finance (Delaware) | 544,756 | 544,756 | ||||
Windmill Funding Corp. | 95,332 | 95,285 | ||||
Yorktown Capital LLC | 95,332 | 95,225 | ||||
13,280,542 | ||||||
FLOATING RATE NOTES3 – 13.38% | ||||||
Allstate Life Global Funding II | 125,294 | 125,299 | ||||
American Express Centurion Bank | 408,567 | 408,567 | ||||
American Express Credit Corp. | 544,756 | 544,935 | ||||
Bank of Nova Scotia | 177,046 | 177,000 | ||||
Beta Finance Inc. | 1,021,417 | 1,021,498 | ||||
Canadian Imperial Bank of Commerce | 926,084 | 925,903 | ||||
CC USA Inc. | 544,756 | 544,712 | ||||
Commodore CDO Ltd. | 68,094 | 68,094 | ||||
Den Danske Bank NY | 817,133 | 817,006 | ||||
DEPFA Bank PLC | 272,378 | 272,378 | ||||
Dorada Finance Inc. | 226,074 | 226,046 | ||||
Fairway Finance LLC | 408,567 | 408,563 |
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Fifth Third Bancorp | $ | 544,756 | $ | 544,756 | ||
Five Finance Inc. | 354,091 | 354,106 | ||||
General Electric Capital Corp. | 122,570 | 122,740 | ||||
General Electric Commercial Equipment Financing LLC | 116,327 | 116,327 | ||||
Hartford Life Global Funding Trust | 272,378 | 272,378 | ||||
HBOS Treasury Services PLC | 817,133 | 817,134 | ||||
K2 USA LLC | 1,225,700 | 1,225,715 | ||||
Leafs LLC | 285,997 | 285,996 | ||||
Links Finance LLC | 1,116,749 | 1,117,034 | ||||
Lothian Mortgages PLC | 544,756 | 544,756 | ||||
MetLife Funding Inc. | 408,567 | 408,567 | ||||
National City Bank (Ohio) | 680,944 | 680,895 | ||||
Nationwide Building Society | 1,007,798 | 1,008,011 | ||||
Norddeutsche Landesbank | 272,378 | 272,339 | ||||
Northern Rock PLC | 817,133 | 817,134 | ||||
Permanent Financing PLC | 735,420 | 735,421 | ||||
Sedna Finance Inc. | 149,808 | 149,777 | ||||
Sigma Finance Inc. | 1,389,127 | 1,389,193 | ||||
Tango Finance Corp. | 838,106 | 838,072 | ||||
Wachovia Asset Securitization Inc. | 817,133 | 817,134 | ||||
Wells Fargo & Co. | 136,189 | 136,209 | ||||
WhistleJacket Capital LLC | 953,322 | 953,240 | ||||
White Pine Finance LLC | 1,489,906 | 1,489,797 | ||||
Winston Funding Ltd. | 194,478 | 194,478 | ||||
20,831,210 | ||||||
MEDIUM-TERM NOTES3 – 0.17% | ||||||
CC USA Inc. | 272,378 | 272,374 | ||||
272,374 | ||||||
MONEY MARKET FUNDS3 – 0.85% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5 | 1,164,616 | 1,164,616 | ||||
BlackRock Temp Cash Money Market Fund | 50,796 | 50,796 | ||||
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares | 102,775 | 102,775 | ||||
1,318,187 |
40 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
REPURCHASE AGREEMENTS3 – 6.82% |
| ||||||
Bank of America N.A. Repurchase Agreements, | $ | 6,128,500 | $ | 6,128,500 | |||
Merrill Lynch Government Securities Inc. | 4,494,234 | 4,494,234 | |||||
10,622,734 | |||||||
TIME DEPOSITS3 – 6.06% |
| ||||||
Abbey National Treasury Services PLC | 190,664 | 190,648 | |||||
Banco Bilbao Vizcaya Argentaria SA | 408,567 | 408,567 | |||||
BNP Paribas (New York) | 381,329 | 381,329 | |||||
Credit Suisse First Boston | 272,378 | 272,378 | |||||
Deutsche Bank AG | 453,601 | 453,601 | |||||
First Tennessee Bank | 680,944 | 680,945 | |||||
HBOS Treasury Services PLC | 446,700 | 446,698 | |||||
Key Bank N.A. | 1,634,267 | 1,634,267 | |||||
Natexis Banques | 476,661 | 476,661 | |||||
Norddeutsche Landesbank | 272,378 | 272,363 | |||||
Royal Bank of Scotland | 68,094 | 68,094 | |||||
Societe Generale | 27,238 | 27,238 | |||||
Toronto-Dominion Bank | 1,089,511 | 1,089,463 | |||||
UBS AG | 108,951 | 108,944 | |||||
Washington Mutual Bank | 1,252,938 | 1,252,938 | |||||
Wells Fargo Bank N.A. | 1,675,123 | 1,675,120 | |||||
9,439,254 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.47% |
| ||||||
Federal Home Loan Mortgage Corp. | 326,453 | 325,821 | |||||
Federal National Mortgage Association | 408,567 | 404,793 | |||||
730,614 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 56,494,915 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 136.21% | 212,099,845 | ||||||
Other Assets, Less Liabilities – (36.21%) | (56,386,255 | ) | |||||
NET ASSETS – 100.00% | $ | 155,713,590 | |||||
1 | Non-income earning security. |
2 | All or a portion of this security represents a security on loan. See Note 5. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 41 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 93.79% | |||||
AEROSPACE & DEFENSE – 1.67% | |||||
Finmeccanica SpA1 | 626,760 | $ | 645,578 | ||
645,578 | |||||
APPAREL – 0.22% | |||||
Benetton Group SpA1 | 6,940 | 85,762 | |||
85,762 | |||||
AUTO MANUFACTURERS – 1.04% | |||||
Fiat SpA1,2 | 53,690 | 402,650 | |||
402,650 | |||||
AUTO PARTS & EQUIPMENT – 0.93% | |||||
Pirelli SpA1 | 277,287 | 360,512 | |||
360,512 | |||||
BANKS – 25.89% | |||||
Banca Antonveneta SpA1,2 | 25,910 | 763,838 | |||
Banca Intesa SpA1 | 324,930 | 1,595,795 | |||
Banca Monte dei Paschi di Siena SpA1 | 135,200 | 461,206 | |||
Banca Nazionale del Lavoro SpA1,2 | 185,620 | 520,483 | |||
Banca Popolare di Milano Scrl1 | 46,030 | 400,802 | |||
Banca Popolare di Verona e Novara Scrl | 43,050 | 845,708 | |||
Banche Popolari Unite Scrl | 42,890 | 884,693 | |||
Capitalia SpA | 154,080 | 787,395 | |||
Fineco SpA1,2 | 16,327 | 145,850 | |||
Sanpaolo IMI SpA1 | 118,564 | 1,739,004 | |||
UniCredito Italiano SpA1 | 321,180 | 1,878,998 | |||
10,023,772 | |||||
BUILDING MATERIALS – 0.44% | |||||
Italcementi SpA1 | 9,670 | 171,482 | |||
171,482 | |||||
COMMERCIAL SERVICES – 2.27% | |||||
Autostrade SpA | 31,520 | 877,344 | |||
877,344 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.78% | |||||
Banca Fideuram SpA1 | 32,110 | 169,206 | |||
Mediobanca SpA1 | 53,620 | 908,873 | |||
1,078,079 | |||||
ELECTRIC – 8.96% | |||||
Edison SpA1,2 | 98,780 | 206,245 | |||
Enel SpA1 | 303,610 | 2,927,771 | |||
Terna SpA Rights1,2 | 117,550 | 336,635 | |||
3,470,651 | |||||
GAS – 2.36% | |||||
Snam Rete Gas SpA | 156,190 | 914,794 | |||
914,794 | |||||
HEALTH CARE-PRODUCTS – 0.91% | |||||
Luxottica Group SpA1 | 16,700 | 354,003 | |||
354,003 | |||||
INSURANCE – 13.02% | |||||
Alleanza Assicurazioni SpA1 | 53,870 | 733,635 | |||
Assicurazioni Generali SpA1 | 97,220 | 3,262,257 | |||
Mediolanum SpA1 | 27,640 | 203,435 | |||
Riunione Adriatica di Sicurta SpA1 | 36,150 | 840,674 | |||
5,040,001 | |||||
MEDIA – 3.73% | |||||
Arnoldo Mondadori Editore SpA1 | 13,860 | 155,271 | |||
Gruppo Editoriale L’Espresso SpA1 | 18,660 | 120,622 | |||
Mediaset SpA1 | 63,350 | 894,692 | |||
Seat Pagine Gialle SpA1,2 | 430,234 | 192,451 | |||
Telecom Italia Media SpA1,2 | 154,787 | 79,203 | |||
1,442,239 | |||||
OIL & GAS – 18.31% | |||||
ENI SpA1 | 271,180 | 7,091,030 | |||
7,091,030 | |||||
RETAIL – 0.95% | |||||
Autogrill SpA1,2 | 12,340 | 193,933 | |||
Bulgari SpA1 | 13,840 | 172,316 | |||
366,249 | |||||
TELECOMMUNICATIONS – 10.31% | |||||
Telecom Italia Mobile SpA | 73,773 | 507,729 | |||
Telecom Italia SpA1 | 874,981 | 3,411,630 | |||
Tiscali SpA1,2 | 20,630 | 72,292 | |||
3,991,651 | |||||
TOTAL COMMON STOCKS | 36,315,797 | ||||
PREFERRED STOCKS – 5.93% | |||||
BANKS – 0.74% | |||||
Banca Intesa SpA RNC | 64,230 | 285,606 | |||
285,606 |
42 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
TELECOMMUNICATIONS – 5.19% | ||||||
Telecom Italia SpA RNC1 | 635,021 | $ | 2,010,305 | |||
2,010,305 | ||||||
TOTAL PREFERRED STOCKS | 2,295,911 | |||||
SHORT-TERM INVESTMENTS – 42.59% | ||||||
COMMERCIAL PAPER3 – 10.01% | ||||||
Amstel Funding Corp. | $ | 33,035 | 32,572 | |||
Amsterdam Funding Corp. | 87,424 | 87,388 | ||||
ANZ National Bank Ltd. | 39,738 | 39,197 | ||||
Barton Capital Corp. | 175,846 | 175,706 | ||||
Blue Ridge Asset Funding Corp. | 87,424 | 87,288 | ||||
Bryant Park Funding LLC | 7,948 | 7,939 | ||||
Chariot Funding LLC | 79,476 | 79,364 | ||||
Chesham Finance LLC | 31,790 | 31,784 | ||||
Corporate Asset Funding | 39,738 | 39,673 | ||||
CRC Funding LLC | 19,869 | 19,855 | ||||
Delaware Funding Corp. | 147,382 | 147,219 | ||||
DEPFA Bank PLC | 39,738 | 39,580 | ||||
Edison Asset Securitization | 258,297 | 257,831 | ||||
Fairway Finance LLC | 75,766 | 75,684 | ||||
Falcon Asset Securitization Corp. | 306,429 | 306,071 | ||||
Ford Credit Auto Receivables | 184,543 | 184,205 | ||||
Ford Credit Floorplan Motown | 99,345 | 99,304 | ||||
Fortis Funding LLC | 111,266 | 110,765 | ||||
General Electric Capital Corp. | 174,847 | 174,394 | ||||
Giro Funding US Corp. | 95,809 | 95,707 | ||||
Grampian Funding LLC | 234,454 | 231,571 | ||||
Jupiter Securitization Corp. | 362,593 | 362,265 | ||||
Kitty Hawk Funding Corp. | 119,214 | 119,096 | ||||
Liberty Street Funding Corp. | 43,712 | 43,669 | ||||
Moat Funding LLC | 15,895 | 15,871 | ||||
Nordea North America Inc. | 39,738 | 39,339 | ||||
Park Avenue Receivables Corp. | 124,143 | 124,059 | ||||
Park Granada LLC | 55,633 | 55,563 | ||||
Preferred Receivables Funding Corp. | 168,870 | 168,636 | ||||
Ranger Funding Co. LLC | 23,634 | 23,629 | ||||
Santander Central Hispano | 99,345 | 98,368 |
SCHEDULESOF INVESTMENTS | 43 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Scaldis Capital LLC | $ | 19,891 | $ | 19,695 | ||
Ticonderoga Master Funding Ltd. | 134,782 | 134,585 | ||||
Tulip Funding Corp. | 132,666 | 132,666 | ||||
UBS Finance (Delaware) | 158,952 | 158,952 | ||||
Windmill Funding Corp. | 27,817 | 27,803 | ||||
Yorktown Capital LLC | 27,817 | 27,786 | ||||
3,875,079 | ||||||
FLOATING RATE NOTES3 – 15.70% | ||||||
Allstate Life Global Funding II | 36,559 | 36,560 | ||||
American Express Centurion Bank | 119,214 | 119,214 | ||||
American Express Credit Corp. | 158,952 | 159,004 | ||||
Bank of Nova Scotia | 51,659 | 51,647 | ||||
Beta Finance Inc. | 298,035 | 298,059 | ||||
Canadian Imperial Bank of Commerce | 270,218 | 270,166 | ||||
CC USA Inc. | 158,952 | 158,939 | ||||
Commodore CDO Ltd. | 19,869 | 19,869 | ||||
Den Danske Bank NY | 238,428 | 238,391 | ||||
DEPFA Bank PLC | 79,476 | 79,476 | ||||
Dorada Finance Inc. | 65,965 | 65,957 | ||||
Fairway Finance LLC | 119,214 | 119,213 | ||||
Fifth Third Bancorp | 158,952 | 158,952 | ||||
Five Finance Inc. | 103,319 | 103,323 | ||||
General Electric Capital Corp. | 35,764 | 35,814 | ||||
General Electric Commercial Equipment Financing LLC | 33,942 | 33,942 | ||||
Hartford Life Global Funding Trust | 79,476 | 79,476 | ||||
HBOS Treasury Services PLC | 238,428 | 238,428 | ||||
K2 USA LLC | 357,642 | 357,646 | ||||
Leafs LLC | 83,450 | 83,450 | ||||
Links Finance LLC | 325,851 | 325,934 | ||||
Lothian Mortgages PLC | 158,952 | 158,952 | ||||
MetLife Funding Inc. | 119,214 | 119,214 | ||||
National City Bank (Ohio) | 198,690 | 198,674 | ||||
Nationwide Building Society | 294,061 | 294,124 | ||||
Norddeutsche Landesbank | 79,476 | 79,465 | ||||
Northern Rock PLC 2.60% - 2.62%, 10/25/05 - 02/03/064 | 238,428 | 238,428 |
44 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Permanent Financing PLC | $ | 214,585 | $ | 214,585 | ||
Sedna Finance Inc. | 43,712 | 43,703 | ||||
Sigma Finance Inc. | 405,327 | 405,347 | ||||
Tango Finance Corp. | 244,547 | 244,537 | ||||
Wachovia Asset Securitization Inc. | 238,428 | 238,428 | ||||
Wells Fargo & Co. | 39,738 | 39,744 | ||||
WhistleJacket Capital LLC | 278,166 | 278,141 | ||||
White Pine Finance LLC | 434,733 | 434,699 | ||||
Winston Funding Ltd. | 56,746 | 56,746 | ||||
6,078,247 | ||||||
MEDIUM-TERM NOTES3 – 0.21% | ||||||
CC USA Inc. | 79,476 | 79,475 | ||||
79,475 | ||||||
MONEY MARKET FUNDS3 – 1.00% | ||||||
Barclays Global Investors Funds | 343,524 | 343,524 | ||||
BlackRock Temp Cash Money | 14,822 | 14,822 | ||||
Short-Term Investment Co. - Prime | 29,988 | 29,988 | ||||
388,334 | ||||||
REPURCHASE AGREEMENTS3 – 8.01% | ||||||
Bank of America N.A. Repurchase | $ | 1,788,208 | 1,788,208 | |||
Merrill Lynch Government Securities | 1,311,353 | 1,311,353 | ||||
3,099,561 | ||||||
TIME DEPOSITS3 – 7.11% | ||||||
Abbey National Treasury Services PLC | 55,633 | 55,620 | ||||
Banco Bilbao Vizcaya Argentaria SA | 119,214 | 119,214 | ||||
BNP Paribas (New York) | 111,266 | 111,266 | ||||
Credit Suisse First Boston | 79,476 | 79,476 | ||||
Deutsche Bank AG | 132,354 | 132,354 | ||||
First Tennessee Bank | 198,690 | 198,690 | ||||
HBOS Treasury Services PLC | 130,341 | 130,340 | ||||
Key Bank N.A. | 476,856 | 476,856 | ||||
Natexis Banques | 139,083 | 139,083 | ||||
Norddeutsche Landesbank | 79,476 | 79,472 | ||||
Royal Bank of Scotland | 19,869 | 19,869 |
SCHEDULESOF INVESTMENTS | 45 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Societe Generale | $ | 7,948 | $ | 7,948 | |||
Toronto-Dominion Bank | 317,904 | 317,890 | |||||
UBS AG | 31,790 | 31,789 | |||||
Washington Mutual Bank | 365,590 | 365,590 | |||||
Wells Fargo Bank N.A. | 488,777 | 488,777 | |||||
2,754,234 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.55% |
| ||||||
Federal Home Loan Mortgage Corp. | 95,254 | 95,070 | |||||
Federal National Mortgage Association | 119,214 | 118,113 | |||||
213,183 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 16,488,113 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 142.31% | 55,099,821 | ||||||
Other Assets, Less Liabilities – (42.31%) | (16,381,249 | ) | |||||
NET ASSETS – 100.00% | $ | 38,718,572 | |||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
46 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
COMMON STOCKS – 99.51% | ||||||
BANKS – 4.83% | ||||||
ABN AMRO Holding NV | 90,365 | $ | 2,493,677 | |||
2,493,677 | ||||||
BEVERAGES – 3.50% | ||||||
Heineken NV | 52,794 | 1,806,562 | ||||
1,806,562 | ||||||
CHEMICALS – 5.29% | ||||||
Akzo Nobel NV | 46,958 | 2,122,326 | ||||
DSM NV | 8,586 | 611,429 | ||||
2,733,755 | ||||||
COMMERCIAL SERVICES – 2.68% | ||||||
IHC Caland NV | 10,600 | 704,902 | ||||
Randstad Holdings NV | 4,717 | 210,248 | ||||
Vedior NV | 24,910 | 468,190 | ||||
1,383,340 | ||||||
COMPUTERS – 0.29% | ||||||
Getronics NV1,2 | 57,346 | 151,475 | ||||
151,475 | ||||||
DISTRIBUTION & WHOLESALE – 0.34% | ||||||
Hagemeyer NV1,2 | 60,791 | 175,099 | ||||
175,099 | ||||||
ELECTRONICS – 4.80% | ||||||
Koninklijke Philips Electronics NV | 89,411 | 2,479,219 | ||||
2,479,219 | ||||||
FOOD – 13.53% | ||||||
Koninklijke Ahold NV1 | 179,140 | 1,624,048 | ||||
Koninklijke Numico NV CVA1,2 | 17,310 | 700,781 | ||||
Unilever NV CVA | 69,854 | 4,663,852 | ||||
6,988,681 | ||||||
INSURANCE – 18.80% | ||||||
AEGON NV2 | 161,332 | 2,334,170 | ||||
ING Groep NV2 | 239,083 | 7,378,314 | ||||
9,712,484 | ||||||
MEDIA – 7.19% | ||||||
Reed Elsevier NV | 130,168 | 1,959,308 | ||||
VNU NV | 29,468 | 924,663 | ||||
Wolters Kluwer NV CVA | 42,930 | 831,954 | ||||
3,715,925 | ||||||
OFFICE & BUSINESS EQUIPMENT – 0.98% | ||||||
Oce NV2 | 30,687 | 509,155 | ||||
509,155 | ||||||
OIL & GAS – 24.75% | ||||||
Royal Dutch Petroleum Co.2 | 202,354 | 12,785,102 | ||||
12,785,102 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 1.77% | ||||||
Corio NV | 4,359 | 243,009 | ||||
Rodamco Europe NV | 5,406 | 436,639 | ||||
Wereldhave NV | 2,226 | 234,749 | ||||
914,397 | ||||||
SEMICONDUCTORS – 2.23% | ||||||
ASML Holding NV1 | 62,063 | 1,150,839 | ||||
1,150,839 | ||||||
TELECOMMUNICATIONS – 4.48% | ||||||
Koninklijke KPN NV | 238,288 | 2,312,091 | ||||
2,312,091 | ||||||
TRANSPORTATION – 4.05% | ||||||
TPG NV | 74,624 | 2,091,982 | ||||
2,091,982 | ||||||
TOTAL COMMON STOCKS | 51,403,783 | |||||
SHORT-TERM INVESTMENTS – 19.81% | ||||||
COMMERCIAL PAPER3 – 4.65% | ||||||
Amstel Funding Corp. | $ | 20,492 | 20,205 | |||
Amsterdam Funding Corp. | 54,229 | 54,208 | ||||
ANZ National Bank Ltd. | 24,650 | 24,314 | ||||
Barton Capital Corp. | 109,078 | 108,990 | ||||
Blue Ridge Asset Funding Corp. | 54,229 | 54,145 | ||||
Bryant Park Funding LLC | 4,930 | 4,925 | ||||
Chariot Funding LLC | 49,299 | 49,230 |
SCHEDULESOF INVESTMENTS | 47 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Chesham Finance LLC | $ | 19,720 | $ | 19,715 | ||
Corporate Asset Funding | 24,650 | 24,609 | ||||
CRC Funding LLC | 12,325 | 12,317 | ||||
Delaware Funding Corp. | 91,421 | 91,321 | ||||
DEPFA Bank PLC | 24,650 | 24,552 | ||||
Edison Asset Securitization | 160,222 | 159,933 | ||||
Fairway Finance LLC | 46,998 | 46,947 | ||||
Falcon Asset Securitization Corp. | 190,079 | 189,858 | ||||
Ford Credit Auto Receivables | 114,472 | 114,262 | ||||
Ford Credit Floorplan Motown | 61,624 | 61,599 | ||||
Fortis Funding LLC | 69,019 | 68,708 | ||||
General Electric Capital Corp. | 108,458 | 108,177 | ||||
Giro Funding US Corp. | 59,431 | 59,367 | ||||
Grampian Funding LLC | 145,432 | 143,643 | ||||
Jupiter Securitization Corp. | 224,917 | 224,712 | ||||
Kitty Hawk Funding Corp. | 73,949 | 73,876 | ||||
Liberty Street Funding Corp. | 27,114 | 27,088 | ||||
Moat Funding LLC | 9,860 | 9,845 | ||||
Nordea North America Inc. | 24,650 | 24,402 | ||||
Park Avenue Receivables Corp. | 77,006 | 76,954 | ||||
Park Granada LLC | 34,509 | 34,466 | ||||
Preferred Receivables Funding Corp. | 104,750 | 104,605 | ||||
Ranger Funding Co. LLC | 14,660 | 14,657 | ||||
Santander Central Hispano | 61,624 | 61,018 | ||||
Scaldis Capital LLC | 12,339 | 12,217 | ||||
Ticonderoga Master Funding Ltd. | 83,605 | 83,483 | ||||
Tulip Funding Corp. | 82,293 | 82,293 | ||||
UBS Finance (Delaware) | 98,598 | 98,598 | ||||
Windmill Funding Corp. | 17,255 | 17,246 | ||||
Yorktown Capital LLC | 17,255 | 17,235 | ||||
2,403,720 | ||||||
FLOATING RATE NOTES3 – 7.30% | ||||||
Allstate Life Global Funding II | 22,678 | 22,678 | ||||
American Express Centurion Bank | 73,949 | 73,949 | ||||
American Express Credit Corp. | 98,598 | 98,631 |
48 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Bank of Nova Scotia | $ | 32,044 | $ | 32,036 | ||
Beta Finance Inc. | 184,872 | 184,885 | ||||
Canadian Imperial Bank of Commerce | 167,617 | 167,585 | ||||
CC USA Inc. | 98,598 | 98,590 | ||||
Commodore CDO Ltd. | 12,325 | 12,325 | ||||
Den Danske Bank NY | 147,897 | 147,874 | ||||
DEPFA Bank PLC | 49,299 | 49,299 | ||||
Dorada Finance Inc. | 40,918 | 40,913 | ||||
Fairway Finance LLC | 73,949 | 73,948 | ||||
Fifth Third Bancorp | 98,598 | 98,598 | ||||
Five Finance Inc. | 64,089 | 64,092 | ||||
General Electric Capital Corp. | 22,185 | 22,215 | ||||
General Electric Commercial Equipment Financing LLC | 21,055 | 21,055 | ||||
Hartford Life Global Funding Trust | 49,299 | 49,299 | ||||
HBOS Treasury Services PLC | 147,897 | 147,897 | ||||
K2 USA LLC | 221,846 | 221,849 | ||||
Leafs LLC | 51,764 | 51,764 | ||||
Links Finance LLC | 202,126 | 202,179 | ||||
Lothian Mortgages PLC | 98,598 | 98,598 | ||||
MetLife Funding Inc. | 73,949 | 73,949 | ||||
National City Bank (Ohio) | 123,248 | 123,239 | ||||
Nationwide Building Society | 182,407 | 182,445 | ||||
Norddeutsche Landesbank | 49,299 | 49,292 | ||||
Northern Rock PLC | 147,897 | 147,897 | ||||
Permanent Financing PLC | 133,108 | 133,108 | ||||
Sedna Finance Inc. | 27,114 | 27,109 | ||||
Sigma Finance Inc. | 251,425 | 251,438 | ||||
Tango Finance Corp. | 151,693 | 151,688 | ||||
Wachovia Asset Securitization Inc. | 147,897 | 147,898 | ||||
Wells Fargo & Co. | 24,650 | 24,653 | ||||
WhistleJacket Capital LLC | 172,547 | 172,534 |
SCHEDULESOF INVESTMENTS | 49 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
White Pine Finance LLC | $ | 269,666 | $ | 269,645 | ||
Winston Funding Ltd. | 35,200 | 35,200 | ||||
3,770,354 | ||||||
MEDIUM-TERM NOTES3 – 0.10% | ||||||
CC USA Inc. | 49,299 | 49,298 | ||||
49,298 | ||||||
MONEY MARKET FUNDS3 – 0.47% | ||||||
Barclays Global Investors Funds | 217,506 | 217,506 | ||||
BlackRock Temp Cash Money Market Fund | 9,194 | 9,194 | ||||
Short-Term Investment Co. - Prime | 18,602 | 18,602 | ||||
245,302 | ||||||
REPURCHASE AGREEMENTS3 – 3.72% | ||||||
Bank of America N.A. Repurchase | $ | 1,109,230 | 1,109,230 | |||
Merrill Lynch Government Securities | 813,435 | 813,435 | ||||
1,922,665 | ||||||
TIME DEPOSITS3 – 3.31% | ||||||
Abbey National Treasury Services PLC | 34,509 | 34,497 | ||||
Banco Bilbao Vizcaya Argentaria SA | 73,949 | 73,9 48 | ||||
BNP Paribas (New York) | 69,019 | 69,019 | ||||
Credit Suisse First Boston | 49,299 | 49,299 | ||||
Deutsche Bank AG | 82,100 | 82,100 | ||||
First Tennessee Bank | 123,248 | 123,248 | ||||
HBOS Treasury Services PLC | 80,850 | 80,850 | ||||
Key Bank N.A. | 295,794 | 295,795 | ||||
Natexis Banques | 86,273 | 86,273 | ||||
Norddeutsche Landesbank | 49,299 | 49,296 | ||||
Royal Bank of Scotland | 12,325 | 12,325 | ||||
Societe Generale | 4,930 | 4,930 | ||||
Toronto - Dominion Bank | 197,196 | 197,187 | ||||
UBS AG | 19,720 | 19,718 | ||||
Washington Mutual Bank | 226,776 | 226,776 | ||||
Wells Fargo Bank N.A. | 303,189 | 303,189 | ||||
1,708,450 | ||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.26% | ||||||
Federal Home Loan Mortgage Corp. | 59,086 | 58,972 |
50 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Federal National Mortgage Association 2.33%, 07/22/05 | $ | 73,949 | $ | 73,266 | |||
132,238 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 10,232,027 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 119.32% | 61,635,810 | ||||||
Other Assets, Less Liabilities – (19.32%) | (9,980,887 | ) | |||||
NET ASSETS – 100.00% | $ | 51,654,923 | |||||
1 | Non-income earning security. |
2 | All or a portion of this security represents a security on loan. See Note 5. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 51 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.93% | |||||
ADVERTISING – 0.57% | |||||
Telefonica Publicidad e Informacion SA1 | 39,825 | $ | 381,133 | ||
381,133 | |||||
AGRICULTURE – 3.54% | |||||
Altadis SA | 56,375 | 2,375,832 | |||
2,375,832 | |||||
AIRLINES – 0.47% | |||||
Iberia Lineas Aereas de Espana SA1 | 89,575 | 313,889 | |||
313,889 | |||||
BANKS – 33.45% | |||||
Banco Bilbao Vizcaya Argentaria SA | 470,875 | 8,168,958 | |||
Banco Popular Espanol SA1 | 46,850 | 3,252,346 | |||
Banco Santander Central Hispano SA1 | 828,875 | 10,297,940 | |||
Bankinter SA1 | 13,325 | 711,899 | |||
22,431,143 | |||||
BIOTECHNOLOGY – 0.47% | |||||
Zeltia SA1 | 35,175 | 315,154 | |||
315,154 | |||||
BUILDING MATERIALS – 0.13% | |||||
Uralita SA2 | 15,750 | 86,341 | |||
86,341 | |||||
COMMERCIAL SERVICES – 2.44% | |||||
Abertis Infraestructuras SA1 | 56,300 | 1,338,411 | |||
Cintra Concesiones de Infraestructuras de Transporte SA2 | 25,925 | 295,939 | |||
1,634,350 | |||||
COMPUTERS – 0.73% | |||||
Indra Sistemas SA1 | 28,275 | 490,528 | |||
490,528 | |||||
ELECTRIC – 11.98% | |||||
Endesa SA1 | 144,025 | 3,267,122 | |||
Iberdrola SA1 | 123,575 | 3,267,423 | |||
Union Fenosa SA1 | 51,950 | 1,496,342 | |||
8,030,887 | |||||
ENERGY – ALTERNATE SOURCES – 0.43% | |||||
Gamesa Corporacion Tecnologica SA1 | 20,700 | 287,950 | |||
287,950 | |||||
ENGINEERING & CONSTRUCTION – 5.57% | |||||
Acciona SA1 | 5,850 | 549,374 | |||
Actividades de Construcciones y Servicios SA1 | 64,800 | 1,656,597 | |||
Fomento de Construcciones y Contratas SA1 | 17,075 | 882,102 | |||
Grupo Ferrovial SA | 10,800 | 645,666 | |||
3,733,739 | |||||
FOOD – 0.98% | |||||
Ebro Puleva SA1 | 26,082 | 450,059 | |||
Viscofan SA1 | 19,375 | 207,540 | |||
657,599 | |||||
FOREST PRODUCTS & PAPER – 0.44% | |||||
Grupo Empresarial ENCE SA1 | 8,925 | 296,402 | |||
296,402 | |||||
GAS – 2.13% | |||||
Gas Natural SDG SA | 48,200 | 1,430,554 | |||
1,430,554 | |||||
INSURANCE – 1.15% | |||||
Corporacion Mapfre SA1 | 47,494 | 769,102 | |||
769,102 | |||||
IRON & STEEL – 1.26% | |||||
Acerinox SA1 | 48,700 | 846,809 | |||
846,809 | |||||
LODGING – 0.72% | |||||
NH Hoteles SA1 | 33,800 | 485,882 | |||
485,882 | |||||
MEDIA – 1.56% | |||||
Antena 3 de Television SA1,2 | 2,900 | 223,260 | |||
Promotora de Informaciones SA | 27,800 | 586,346 | |||
Sogecable SA1,2 | 5,825 | 235,279 | |||
1,044,885 | |||||
OIL & GAS – 5.00% | |||||
Repsol YPF SA1 | 122,775 | 3,350,569 | |||
3,350,569 | |||||
PHARMACEUTICALS – 0.80% | |||||
FAES FARMA SA1 | 26,275 | 532,907 | |||
532,907 |
52 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
REAL ESTATE – 1.29% | ||||||
Metrovacesa SA | 6,550 | $ | 340,810 | |||
Sacyr Vallehermoso SA1 | 28,502 | 525,110 | ||||
865,920 | ||||||
RETAIL – 2.28% | ||||||
Industria de Diseno Textil SA1 | 49,325 | 1,526,796 | ||||
1,526,796 | ||||||
TELECOMMUNICATIONS – 20.81% | ||||||
Telefonica SA | 756,400 | 13,955,705 | ||||
13,955,705 | ||||||
TRANSPORTATION – 0.85% | ||||||
Amadeus Global Travel Distribution SA Class A | 59,450 | 570,526 | ||||
570,526 | ||||||
WATER – 0.88% | ||||||
Sociedad General de Aguas de Barcelona SA1,2 | 301 | 6,393 | ||||
Sociedad General de Aguas de Barcelona SA Class B | 27,249 | 584,12 | ||||
590,522 | ||||||
TOTAL COMMON STOCKS | 67,005,124 | |||||
SHORT-TERM INVESTMENTS – 21.66% | ||||||
COMMERCIAL PAPER3 – 5.08% | ||||||
Amstel Funding Corp. | $ | 29,069 | 28,662 | |||
Amsterdam Funding Corp. | 76,928 | 76,898 | ||||
ANZ National Bank Ltd. | 34,967 | 34,492 | ||||
Barton Capital Corp. | 154,736 | 154,611 | ||||
Blue Ridge Asset Funding Corp. | 76,928 | 76,809 | ||||
Bryant Park Funding LLC | 6,993 | 6,986 | ||||
Chariot Funding LLC | 69,935 | 69,836 | ||||
Chesham Finance LLC | 27,974 | 27,968 | ||||
Corporate Asset Funding | 34,967 | 34,910 | ||||
CRC Funding LLC | 17,484 | 17,472 | ||||
Delaware Funding Corp. | 129,688 | 129,544 | ||||
DEPFA Bank PLC | 34,967 | 34,828 | ||||
Edison Asset Securitization | 227,288 | 226,878 | ||||
Fairway Finance LLC | 66,670 | 66,599 | ||||
Falcon Asset Securitization Corp. | 269,642 | 269,328 | ||||
Ford Credit Auto Receivables | 162,389 | 162,091 | ||||
Ford Credit Floorplan Motown | 87,418 | 87,383 | ||||
Fortis Funding LLC | 97,909 | 97,468 | ||||
General Electric Capital Corp. | 153,857 | 153,458 | ||||
Giro Funding US Corp. | 84,307 | 84,217 | ||||
Grampian Funding LLC | 206,308 | 203,770 | ||||
Jupiter Securitization Corp. | 319,063 | 318,775 | ||||
Kitty Hawk Funding Corp. | 104,902 | 104,799 |
SCHEDULESOF INVESTMENTS | 53 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Liberty Street Funding Corp. | $ | 38,464 | $ | 38,426 | ||
Moat Funding LLC | 13,987 | 13,966 | ||||
Nordea North America Inc. | 34,967 | 34,616 | ||||
Park Avenue Receivables Corp. | 109,240 | 109,166 | ||||
Park Granada LLC | 48,954 | 48,892 | ||||
Preferred Receivables Funding Corp. | 148,597 | 148,391 | ||||
Ranger Funding Co. LLC | 20,797 | 20,793 | ||||
Santander Central Hispano | 87,418 | 86,559 | ||||
Scaldis Capital LLC | 17,503 | 17,331 | ||||
Ticonderoga Master Funding Ltd. | 118,601 | 118,428 | ||||
Tulip Funding Corp. | 116,739 | 116,740 | ||||
UBS Finance (Delaware) | 139,870 | 139,870 | ||||
Windmill Funding Corp. | 24,477 | 24,465 | ||||
Yorktown Capital LLC | 24,477 | 24,450 | ||||
3,409,875 | ||||||
FLOATING RATE NOTES3 – 7.98% | ||||||
Allstate Life Global Funding II | 32,170 | 32,171 | ||||
American Express Centurion Bank | 104,902 | 104,902 | ||||
American Express Credit Corp. | 139,870 | 139,916 | ||||
Bank of Nova Scotia | 45,458 | 45,446 | ||||
Beta Finance Inc. | 262,255 | 262,276 | ||||
Canadian Imperial Bank of Commerce | 237,778 | 237,732 | ||||
CC USA Inc. | 139,870 | 139,858 | ||||
Commodore CDO Ltd. | 17,484 | 17,484 | ||||
Den Danske Bank NY | 209,804 | 209,772 | ||||
DEPFA Bank PLC | 69,935 | 69,935 | ||||
Dorada Finance Inc. | 58,046 | 58,039 | ||||
Fairway Finance LLC | 104,902 | 104,901 | ||||
Fifth Third Bancorp | 139,870 | 139,870 | ||||
Five Finance Inc. | 90,915 | 90,919 | ||||
General Electric Capital Corp. | 31,471 | 31,514 | ||||
General Electric Commercial Equipment Financing LLC | 29,868 | 29,868 | ||||
Hartford Life Global Funding Trust | 69,935 | 69,935 | ||||
HBOS Treasury Services PLC | 209,804 | 209,805 |
54 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
K2 USA LLC | $ | 314,707 | $ | 314,710 | ||
Leafs LLC | 73,432 | 73,431 | ||||
Links Finance LLC | 286,733 | 286,806 | ||||
Lothian Mortgages PLC | 139,870 | 139,870 | ||||
MetLife Funding Inc. | 104,902 | 104,902 | ||||
National City Bank (Ohio) | 174,837 | 174,824 | ||||
Nationwide Building Society | 258,759 | 258,814 | ||||
Norddeutsche Landesbank | 69,935 | 69,925 | ||||
Northern Rock PLC | 209,804 | 209,805 | ||||
Permanent Financing PLC | 188,824 | 188,824 | ||||
Sedna Finance Inc. | 38,464 | 38,456 | ||||
Sigma Finance Inc. | 356,667 | 356,685 | ||||
Tango Finance Corp. | 215,189 | 215,180 | ||||
Wachovia Asset Securitization Inc. | 209,804 | 209,804 | ||||
Wells Fargo & Co. | 34,967 | 34,972 | ||||
WhistleJacket Capital LLC | 244,772 | 244,750 | ||||
White Pine Finance LLC | 382,543 | 382,514 | ||||
Winston Funding Ltd. | 49,933 | 49,933 | ||||
5,348,548 | ||||||
MEDIUM-TERM NOTES3 – 0.10% | ||||||
CC USA Inc. | 69,935 | 69,934 | ||||
69,934 | ||||||
MONEY MARKET FUNDS3 – 0.54% | ||||||
Barclays Global Investors Funds | 320,071 | 320,071 | ||||
BlackRock Temp Cash Money Market Fund | 13,042 | 13,043 | ||||
Short-Term Investment Co.– Prime | 26,388 | 26,388 | ||||
359,502 | ||||||
REPURCHASE AGREEMENTS3 – 4.07% | ||||||
Bank of America N.A. Repurchase | $ | 1,573,533 | 1,573,533 | |||
Merrill Lynch Government Securities | 1,153,924 | 1,153,924 | ||||
2,727,457 | ||||||
TIME DEPOSITS3 – 3.61% | ||||||
Abbey National Treasury Services PLC | 48,954 | 48,954 | ||||
Banco Bilbao Vizcaya Argentaria SA | 104,902 | 104,902 | ||||
BNP Paribas (New York) | 97,909 | 97,909 |
SCHEDULESOF INVESTMENTS | 55 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Credit Suisse First Boston | $ | 69,935 | $ | 69,935 | |||
Deutsche Bank AG | 116,465 | 116,465 | |||||
First Tennessee Bank | 174,837 | 174,837 | |||||
HBOS Treasury Services PLC | 114,693 | 114,693 | |||||
Key Bank N.A. | 419,609 | 419,609 | |||||
Natexis Banques | 122,386 | 122,386 | |||||
Norddeutsche Landesbank | 69,935 | 69,931 | |||||
Royal Bank of Scotland | 17,484 | 17,484 | |||||
Societe Generale | 6,993 | 6,993 | |||||
Toronto - Dominion Bank | 279,739 | 279,728 | |||||
UBS AG | 27,974 | 27,973 | |||||
Washington Mutual Bank | 351,700 | 321,700 | |||||
Wells Fargo Bank N.A. | 430,099 | 430,098 | |||||
2,423,597 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.28% |
| ||||||
Federal Home Loan Mortgage Corp. | 83,819 | 83,657 | |||||
Federal National Mortgage Association | 104,902 | 103,933 | |||||
187,590 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 14,526,503 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 121.59% | 81,531,627 | ||||||
Other Assets, Less Liabilities – (21.59%) | (14,476,690 | ) | |||||
NET ASSETS – 100.00% | $ | 67,054,937 | |||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
56 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.93% | |||||
AGRICULTURE – 1.69% | |||||
Swedish Match AB | 90,120 | $ | 1,069,760 | ||
1,069,760 | |||||
AIRLINES – 0.37% | |||||
SAS AB1,2 | 20,440 | 236,640 | |||
236,640 | |||||
AUTO MANUFACTURERS – 8.33% | |||||
Scania AB Class B | 26,280 | 1,201,600 | |||
Volvo AB Class A2 | 26,800 | 1,191,993 | |||
Volvo AB Class B2 | 62,800 | 2,894,412 | |||
5,288,005 | |||||
BANKS – 18.90% | |||||
Nordea AB2 | 589,840 | 6,223,673 | |||
Skandinaviska Enskilda Banken AB Class A2 | 134,480 | 2,611,281 | |||
Svenska Handelsbanken AB Class A2 | 129,200 | 3,161,980 | |||
11,996,934 | |||||
COMMERCIAL SERVICES – 2.07% | |||||
Securitas AB Class B | 82,040 | 1,310,485 | |||
1,310,485 | |||||
COMPUTERS – 0.37% | |||||
WM-Data AB Class B | 86,160 | 236,117 | |||
236,117 | |||||
COSMETICS & PERSONAL CARE – 0.29% | |||||
Oriflame Cosmetics SA SDR1 | 8,154 | 181,633 | |||
181,633 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.66% | |||||
D Carnegie AB | 12,520 | 158,250 | |||
OM AB1,2 | 21,000 | 259,280 | |||
417,530 | |||||
ENGINEERING & CONSTRUCTION – 1.93% | |||||
Skanska AB Class B2 | 102,520 | 1,224,465 | |||
1,224,465 | |||||
FOOD – 0.37% | |||||
Axfood AB2 | 8,200 | 232,528 | |||
232,528 | |||||
FOREST PRODUCTS & PAPER – 4.51% | |||||
Billerud AB2 | 15,600 | 245,761 | |||
Holmen AB Class B2 | 14,760 | 495,338 | |||
Svenska Cellulosa AB Class B2 | 54,080 | 2,120,023 | |||
�� | |||||
2,861,122 | |||||
HAND & MACHINE TOOLS – 4.01% | |||||
Sandvik AB2 | 58,280 | 2,545,165 | |||
2,545,165 | |||||
HEALTH CARE – PRODUCTS – 3.12% | |||||
Elekta AB Class B1 | 7,960 | 264,217 | |||
Gambro AB Class A | 48,800 | 693,700 | |||
Gambro AB Class B2 | 26,200 | 372,437 | |||
Getinge AB Class B2 | 44,720 | 648,809 | |||
1,979,163 | |||||
HEALTH CARE – SERVICES – 0.51% | |||||
Capio AB1 | 21,160 | 324,050 | |||
324,050 | |||||
HOME FURNISHINGS – 2.99% | |||||
Electrolux AB Series B2 | 78,600 | 1,894,822 | |||
1,894,822 | |||||
INSURANCE – 2.39% | |||||
Skandia Forsakrings AB2 | 283,200 | 1,518,988 | |||
1,518,988 | |||||
IRON & STEEL – 0.98% | |||||
Svenskt Stal AB Class A | 16,480 | 434,720 | |||
Svenskt Stal AB Class B2 | 7,400 | 189,780 | |||
624,500 | |||||
MACHINERY – CONSTRUCTION & MINING – 3.85% | |||||
Atlas Copco AB Class A2 | 30,960 | 1,547,161 | |||
Atlas Copco AB Class B | 19,280 | 892,841 | |||
2,440,002 | |||||
MANUFACTURING – 1.29% | |||||
Alfa Laval AB | 23,280 | 411,102 | |||
Trelleborg AB Class B2 | 21,600 | 408,341 | |||
819,443 | |||||
MEDIA – 1.50% | |||||
Eniro AB2 | 44,181 | 517,971 | |||
Modern Times Group AB Class B1 | 14,160 | 435,775 | |||
953,746 | |||||
METAL FABRICATE & HARDWARE – 4.36% | |||||
Assa Abloy AB Class B2 | 81,600 | 1,249,645 |
SCHEDULESOF INVESTMENTS | 57 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Hoganas AB Class B2 | 7,520 | $ | 229,776 | |||
SKF AB Class B2 | 25,840 | 1,287,513 | ||||
2,766,934 | ||||||
OIL & GAS – 0.52% | ||||||
Lundin Petroleum AB1 | 45,640 | 333,085 | ||||
333,085 | ||||||
REAL ESTATE – 1.49% | ||||||
Castellum AB | 11,640 | 397,456 | ||||
Wihlborgs Fastigheter AB | 24,120 | 547,885 | ||||
945,341 | ||||||
RETAIL – 7.30% | ||||||
Hennes & Mauritz AB Class B2 | 131,120 | 4,630,907 | ||||
4,630,907 | ||||||
TELECOMMUNICATIONS – 26.13% | ||||||
Tele2 AB Class B2 | 27,640 | 988,344 | ||||
Telefonaktiebolaget LM Ericsson Class B1 | 4,087,400 | 12,099,811 | ||||
TeliaSonera AB2 | 580,480 | 3,496,304 | ||||
16,584,459 | ||||||
TOTAL COMMON STOCKS | 63,415,824 | |||||
SHORT-TERM INVESTMENTS – 33.13% | ||||||
COMMERCIAL PAPER3 – 7.80% | ||||||
Amstel Funding Corp. | $ | 42,176 | 41,586 | |||
Amsterdam Funding Corp. | 111,615 | 111,570 | ||||
ANZ National Bank Ltd. | 50,734 | 50,043 | ||||
Barton Capital Corp. | 224,505 | 224,325 | ||||
Blue Ridge Asset Funding Corp. | 111,615 | 111,442 | ||||
Bryant Park Funding LLC | 10,147 | 10,136 | ||||
Chariot Funding LLC | 101,468 | 101,325 | ||||
Chesham Finance LLC | 40,587 | 40,579 | ||||
Corporate Asset Funding | 50,734 | 50,651 | ||||
CRC Funding LLC | 25,367 | 25,349 | ||||
Delaware Funding Corp. | 188,164 | 187,955 | ||||
DEPFA Bank PLC | 50,734 | 50,532 | ||||
Edison Asset Securitization | 329,771 | 329,175 | ||||
Fairway Finance LLC | 96,731 | 96,627 | ||||
Falcon Asset Securitization Corp. | 391,222 | 390,765 | ||||
Ford Credit Auto Receivables | 235,609 | 235,175 | ||||
Ford Credit Floorplan Motown | 126,835 | 126,783 | ||||
Fortis Funding LLC | 142,055 | 141,415 | ||||
General Electric Capital Corp. | 223,230 | 222,651 | ||||
Giro Funding US Corp. | 122,321 | 122,191 | ||||
Grampian Funding LLC | 299,331 | 295,650 | ||||
Jupiter Securitization Corp. | 462,928 | 462,508 | ||||
Kitty Hawk Funding Corp. | 152,202 | 152,052 |
58 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Liberty Street Funding Corp. | $ | 55,807 | $ | 55,753 | ||
Moat Funding LLC | 20,294 | 20,263 | ||||
Nordea North America Inc. | 50,734 | 50,225 | ||||
Park Avenue Receivables Corp. | 158,495 | 158,388 | ||||
Park Granada LLC | 71,028 | 70,938 | ||||
Preferred Receivables Funding Corp. | 215,598 | 215,300 | ||||
Ranger Funding Co. LLC | 30,174 | 30,167 | ||||
Santander Central Hispano | 126,835 | 125,587 | ||||
Scaldis Capital LLC | 25,395 | 25,145 | ||||
Ticonderoga Master Funding Ltd. | 172,078 | 171,826 | ||||
Tulip Funding Corp. | 169,377 | 169,376 | ||||
UBS Finance (Delaware) | 202,936 | 202,936 | ||||
Windmill Funding Corp. | 35,514 | 35,496 | ||||
Yorktown Capital LLC | 35,514 | 35,474 | ||||
4,947,359 | ||||||
FLOATING RATE NOTES3 – 12.23% | ||||||
Allstate Life Global Funding II | 46,675 | 46,677 | ||||
American Express Centurion Bank | 152,202 | 152,202 | ||||
American Express Credit Corp. | 202,936 | 203,003 | ||||
Bank of Nova Scotia | 65,954 | 65,938 | ||||
Beta Finance Inc. | 380,505 | 380,536 | ||||
Canadian Imperial Bank of Commerce | 344,991 | 344,923 | ||||
CC USA Inc. | 202,936 | 202,919 | ||||
Commodore CDO Ltd. | 25,367 | 25,368 | ||||
Den Danske Bank NY | 304,404 | 304,356 | ||||
DEPFA Bank PLC | 101,468 | 101,468 | ||||
Dorada Finance Inc. | 84,218 | 84,208 | ||||
Fairway Finance LLC | 152,202 | 152,200 | ||||
Fifth Third Bancorp | 202,936 | 202,936 | ||||
Five Finance Inc. | 131,908 | 131,915 | ||||
General Electric Capital Corp. | 45,661 | 45,724 | ||||
General Electric Commercial Equipment Financing LLC | 43,335 | 43,335 | ||||
Hartford Life Global Funding Trust | 101,468 | 101,468 | ||||
HBOS Treasury Services PLC | 304,404 | 304,404 |
SCHEDULESOF INVESTMENTS | 59 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
K2 USA LLC | $ | 456,606 | $ | 456,612 | ||
Leafs LLC | 106,541 | 106,541 | ||||
Links Finance LLC | 416,019 | 416,126 | ||||
Lothian Mortgages PLC | 202,936 | 202,936 | ||||
MetLife Funding Inc. | 152,202 | 152,202 | ||||
National City Bank (Ohio) | 253,670 | 253,653 | ||||
Nationwide Building Society | 375,432 | 375,511 | ||||
Norddeutsche Landesbank | 101,468 | 101,454 | ||||
Northern Rock PLC | 304,404 | 304,404 | ||||
Permanent Financing PLC | 273,964 | 273,964 | ||||
Sedna Finance Inc. | 55,807 | 55,796 | ||||
Sigma Finance Inc. | 517,487 | 517,510 | ||||
Tango Finance Corp. | 312,217 | 312,204 | ||||
Wachovia Asset Securitization Inc. | 304,404 | 304,404 | ||||
Wells Fargo & Co. | 50,734 | 50,741 | ||||
WhistleJacket Capital LLC | 355,138 | 355,107 | ||||
White Pine Finance LLC | 555,030 | 554,989 | ||||
Winston Funding Ltd. | 72,448 | 72,448 | ||||
7,760,182 | ||||||
MEDIUM-TERM NOTES3 – 0.16% | ||||||
CC USA Inc. | 101,468 | 101,467 | ||||
101,467 | ||||||
MONEY MARKET FUNDS3 – 0.73% | ||||||
Barclays Global Investors Funds | 409,701 | 409,701 | ||||
BlackRock Temp Cash Money | 18,923 | 18,924 | ||||
Short-Term Investment Co. – Prime | 38,286 | 38,286 | ||||
466,911 | ||||||
REPURCHASE AGREEMENTS3 – 6.24% | ||||||
Bank of America N.A. Repurchase | $ | 2,283,030 | 2,283,030 | |||
Merrill Lynch Government Securities | 1,674,222 | 1,674,222 | ||||
3,957,252 | ||||||
TIME DEPOSITS3 – 5.54% | ||||||
Abbey National Treasury Services PLC | 71,028 | 71,027 | ||||
Banco Bilbao Vizcaya Argentaria SA | 152,202 | 152,202 | ||||
BNP Paribas (New York) | 142,055 | 142,056 |
60 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Credit Suisse First Boston | $ | 101,468 | $ | 101,468 | |||
Deutsche Bank AG | 168,978 | 168,978 | |||||
First Tennessee Bank | 253,670 | 253,670 | |||||
HBOS Treasury Services PLC | 166,408 | 166,407 | |||||
Key Bank N.A. | 608,808 | 608,808 | |||||
Natexis Banques | 177,569 | 177,569 | |||||
Norddeutsche Landesbank | 101,468 | 101,463 | |||||
Royal Bank of Scotland | 25,367 | 25,368 | |||||
Societe Generale | 10,147 | 10,147 | |||||
Toronto-Dominion Bank | 405,872 | 405,854 | |||||
UBS AG | 40,587 | 40,584 | |||||
Washington Mutual Bank | 466,753 | 466,753 | |||||
Wells Fargo Bank N.A. | 624,028 | 624,027 | |||||
3,516,381 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.43% | |||||||
Federal Home Loan Mortgage Corp. | 121,612 | 121,377 | |||||
Federal National Mortgage Association | 152,202 | 150,796 | |||||
272,173 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 21,021,725 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 133.06% | 84,437,549 | ||||||
Other Assets, Less Liabilities – (33.06%) | (20,977,981 | ) | |||||
NET ASSETS – 100.00% | $ | 63,459,568 | |||||
SDR – Swedish Depositary Receipts
1 | Non-income earning security. |
2 | All or a portion of this security represents a security on loan. See Note 5. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 61 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 98.41% | |||||
BANKS – 17.23% | |||||
Banque Cantonale Vaudoise | 1,682 | $ | 377,651 | ||
Credit Suisse Group1,2 | 70,644 | 3,089,912 | |||
Julius Baer Holding AG2 | 2,162 | 770,143 | |||
UBS AG Registered | 71,253 | 6,208,487 | |||
Vontobel Holding AG Registered | 17,400 | 450,777 | |||
10,896,970 | |||||
BUILDING MATERIALS – 4.12% | |||||
Geberit AG Registered | 232 | 186,321 | |||
Holcim Ltd. Registered | 36,337 | 2,419,329 | |||
2,605,650 | |||||
CHEMICALS – 8.50% | |||||
Ciba Specialty Chemicals AG Registered1 | 16,070 | 1,141,414 | |||
Clariant AG Registered | 17,458 | 300,766 | |||
Givaudan SA Registered | 2,639 | 1,784,402 | |||
Lonza Group AG Registered | 4,526 | 283,559 | |||
Syngenta AG1,2 | 16,588 | 1,863,643 | |||
5,373,784 | |||||
COMMERCIAL SERVICES – 2.13% | |||||
Adecco SA Registered | 13,254 | 726,223 | |||
Societe Generale de Surveillance Holding SA | 841 | 623,851 | |||
1,350,074 | |||||
COMPUTERS – 0.44% | |||||
Logitech International SA Registered1,2 | 4,236 | 279,839 | |||
279,839 | |||||
ENGINEERING & CONSTRUCTION – 1.61% | |||||
ABB Ltd.1 | 166,553 | 1,015,427 | |||
1,015,427 | |||||
FOOD – 12.23% | |||||
Nestle SA Registered | 27,782 | 7,737,215 | |||
7,737,215 | |||||
HAND & MACHINE TOOLS – 2.00% | |||||
Schindler Holding AG Participation Certificates | 2,030 | 811,649 | |||
Schindler Holding AG Registered | 1,073 | 453,338 | |||
1,264,987 | |||||
HEALTH CARE – PRODUCTS – 4.84% | |||||
Nobel Biocare Holding AG | 3,248 | 709,624 | |||
Phonak Holding AG Registered | 7,308 | 265,057 | |||
Straumann Holding AG Registered | 1,073 | 259,447 | |||
Synthes Inc.1 | 15,080 | 1,829,655 | |||
3,063,783 | |||||
INSURANCE – 8.85% | |||||
Swiss Reinsurance Co. | 35,989 | 2,649,449 | |||
Zurich Financial Services AG1 | 15,950 | 2,948,959 | |||
5,598,408 | |||||
LEISURE TIME – 0.02% | |||||
Kuoni Reisen Holding AG Registered | 29 | 13,386 | |||
13,386 | |||||
MANUFACTURING – 0.39% | |||||
Sulzer AG Registered | 580 | 244,421 | |||
244,421 | |||||
PHARMACEUTICALS – 26.59% | |||||
Novartis AG1 | 208,824 | 10,504,316 | |||
Roche Holding AG Genusschein2 | 48,111 | 5,089,462 | |||
Serono SA | 1,653 | 1,220,479 | |||
16,814,257 | |||||
RETAIL – 6.48% | |||||
Compagnie Financiere Richemont AG Class A | 58,000 | 1,840,674 | |||
Swatch Group (The) AG Class B2 | 6,554 | 912,919 | |||
Swatch Group (The) AG Registered | 29,377 | 821,947 | |||
Valora Holding AG Registered | 2,117 | 519,652 | |||
4,095,192 | |||||
TELECOMMUNICATIONS – 2.98% | |||||
Kudelski SA Bearer1 | 2,407 | 91,666 | |||
Swisscom AG Registered2 | 4,553 | 1,794,857 | |||
1,886,523 | |||||
TOTAL COMMON STOCKS | 62,239,916 |
62 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
SHORT-TERM INVESTMENTS – 14.23% | ||||||
COMMERCIAL PAPER3 – 3.34% | ||||||
Amstel Funding Corp. | $ | 18,003 | $ | 17,751 | ||
Amsterdam Funding Corp. | 47,644 | 47,625 | ||||
ANZ National Bank Ltd. | 21,656 | 21,361 | ||||
Barton Capital Corp. | 95,832 | 95,754 | ||||
Blue Ridge Asset Funding Corp. | 47,644 | 47,570 | ||||
Bryant Park Funding LLC | 4,331 | 4,327 | ||||
Chariot Funding LLC | 43,313 | 43,251 | ||||
Chesham Finance LLC | 17,325 | 17,321 | ||||
Corporate Asset Funding | 21,656 | 21,622 | ||||
CRC Funding LLC | 10,828 | 10,821 | ||||
Delaware Funding Corp. | 80,320 | 80,231 | ||||
DEPFA Bank PLC | 21,656 | 21,570 | ||||
Edison Asset Securitization 2.26% - 2.53%, 03/07/05 - 05/04/05 | 140,766 | 140,512 | ||||
Fairway Finance LLC | 41,291 | 41,247 | ||||
Falcon Asset Securitization Corp. | 166,997 | 166,804 | ||||
Ford Credit Auto Receivables | 100,572 | 100,387 | ||||
Ford Credit Floorplan Motown | 54,141 | 54,119 | ||||
Fortis Funding LLC | 60,638 | 60,364 | ||||
General Electric Capital Corp. | 95,288 | 95,041 | ||||
Giro Funding US Corp. | 52,214 | 52,158 | ||||
Grampian Funding LLC | 127,772 | 126,200 | ||||
Jupiter Securitization Corp. | 197,605 | 197,427 | ||||
Kitty Hawk Funding Corp. | 64,969 | 64,905 | ||||
Liberty Street Funding Corp. | 23,822 | 23,799 | ||||
Moat Funding LLC | 8,663 | 8,649 | ||||
Nordea North America Inc. | 21,656 | 21,439 | ||||
Park Avenue Receivables Corp. | 67,655 | 67,609 | ||||
Park Granada LLC | 30,319 | 30,280 | ||||
Preferred Receivables Funding Corp. | 92,030 | 91,903 | ||||
Ranger Funding Co. | 12,880 | 12,877 | ||||
Santander Central Hispano | 54,141 | 53,608 | ||||
Scaldis Capital LLC | 10,840 | 10,733 | ||||
Ticonderoga Master Funding Ltd. | 73,453 | 73,345 |
SCHEDULESOF INVESTMENTS | 63 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Tulip Funding Corp. | $ | 72,300 | $ | 72,300 | ||
UBS Finance (Delaware) | 86,625 | 86,625 | ||||
Windmill Funding Corp. | 15,159 | 15,152 | ||||
Yorktown Capital LLC | 15,159 | 15,142 | ||||
2,111,829 | ||||||
FLOATING RATE NOTES3 – 5.24% | ||||||
Allstate Life Global Funding II | 19,924 | 19,924 | ||||
American Express Centurion Bank | 64,969 | 64,969 | ||||
American Express Credit Corp. | 86,625 | 86,654 | ||||
Bank of Nova Scotia | 28,153 | 28,146 | ||||
Beta Finance Inc. | 162,422 | 162,436 | ||||
Canadian Imperial Bank of Commerce | 147,263 | 147,233 | ||||
CC USA Inc. | 86,625 | 86,618 | ||||
Commodore CDO Ltd. | 10,828 | 10,828 | ||||
Den Danske Bank NY | 129,938 | 129,917 | ||||
DEPFA Bank PLC | 43,313 | 43,313 | ||||
Dorada Finance Inc. | 35,949 | 35,945 | ||||
Fairway Finance LLC | 64,969 | 64,969 | ||||
Fifth Third Bancorp | 86,625 | 86,625 | ||||
Five Finance Inc. | 56,306 | 56,308 | ||||
General Electric Capital Corp. | 19,491 | 19,518 | ||||
General Electric Commercial Equipment Financing LLC | 18,498 | 18,498 | ||||
Hartford Life Global Funding Trust | 43,313 | 43,313 | ||||
HBOS Treasury Services PLC | 129,938 | 129,939 | ||||
K2 USA LLC | 194,907 | 194,911 | ||||
Leafs LLC | 45,478 | 45,478 | ||||
Links Finance LLC | 177,582 | 177,628 | ||||
Lothian Mortgages PLC | 86,625 | 86,625 | ||||
MetLife Funding Inc. | 64,969 | 64,969 | ||||
National City Bank (Ohio) | 108,281 | 108,274 | ||||
Nationwide Building Society | 160,257 | 160,290 | ||||
Norddeutsche Landesbank | 43,313 | 43,306 | ||||
Northern Rock PLC | 129,938 | 129,938 | ||||
Permanent Financing PLC | 116,944 | 116,945 | ||||
Sedna Finance Inc. | 23,822 | 23,817 |
64 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Sigma Finance Inc. | $ | 220,894 | $ | 220,905 | ||
Tango Finance Corp. | 133,273 | 133,268 | ||||
Wachovia Asset Securitization Inc. | 129,938 | 129,938 | ||||
Wells Fargo & Co. | 21,656 | 21,660 | ||||
WhistleJacket Capital LLC | 151,594 | 151,581 | ||||
White Pine Finance LLC | 236,920 | 236,903 | ||||
Winston Funding Ltd. | 30,925 | 30,925 | ||||
3,312,514 | ||||||
MEDIUM-TERM NOTES3 – 0.07% | ||||||
CC USA Inc. | 43,313 | 43,312 | ||||
43,312 | ||||||
MONEY MARKET FUNDS3 – 0.36% | ||||||
Barclays Global Investors Funds | 201,110 | 201,110 | ||||
BlackRock Temp Cash | 8,077 | 8,077 | ||||
Short-Term Investment Co.– | 16,343 | 16,343 | ||||
225,530 | ||||||
REPURCHASE AGREEMENTS3 – 2.67% | ||||||
Bank of America N.A. Repurchase Agreements, | $ | 974,533 | 974,533 | |||
Merrill Lynch Government Securities Inc. | 714,658 | 714,658 | ||||
1,689,191 | ||||||
TIME DEPOSITS3 – 2.37% | ||||||
Abbey National Treasury Services PLC | 30,319 | 30,318 | ||||
Banco Bilbao Vizcaya Argentaria SA | 64,969 | 64,969 | ||||
BNP Paribas (New York) | 60,638 | 60,638 | ||||
Credit Suisse First Boston | 43,313 | 43,313 | ||||
Deutsche Bank AG | 72,130 | 72,130 | ||||
First Tennessee Bank | 108,281 | 108,281 | ||||
HBOS Treasury Services PLC | 71,033 | 71,033 | ||||
Key Bank N.A. | 259,875 | 259,876 | ||||
Natexis Banques | 75,797 | 75,797 | ||||
Norddeutsche Landesbank | 43,313 | 43,310 | ||||
Royal Bank of Scotland | 10,828 | 10,828 | ||||
Societe Generale | 4,331 | 4,331 | ||||
Toronto-Dominion Bank | 173,250 | 173,244 |
SCHEDULESOF INVESTMENTS | 65 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
UBS AG | $ | 17,325 | $ | 17,324 | |||
Washington Mutual Bank | 199,238 | 199,238 | |||||
Wells Fargo Bank N.A. | 266,372 | 266,372 | |||||
1,501,002 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.18% |
| ||||||
Federal Home Loan Mortgage Corp. | 51,911 | 51,811 | |||||
Federal National Mortgage Association | 64,969 | 64,369 | |||||
116,180 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 8,999,558 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 112.64% | 71,239,474 | ||||||
Other Assets, Less Liabilities – (12.64%) | (7,992,349 | ) | |||||
NET ASSETS – 100.00% | $ | 63,247,125 | |||||
1 | Non-income earning security. |
2 | All or a portion of this security represents a security on loan. See Note 5. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
66 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.52% | |||||
ADVERTISING – 0.64% | |||||
Aegis Group PLC | 269,127 | $ | 509,188 | ||
WPP Group PLC | 273,870 | 3,159,075 | |||
3,668,263 | |||||
AEROSPACE & DEFENSE – 1.19% | |||||
BAE Systems PLC | 740,061 | 3,648,347 | |||
Cobham PLC | 27,081 | 695,158 | |||
Meggitt PLC | 107,406 | 572,407 | |||
Rolls-Royce Group PLC1 | 375,462 | 1,879,871 | |||
6,795,783 | |||||
AGRICULTURE – 2.09% | |||||
British American Tobacco PLC | 390,915 | 7,189,097 | |||
Imperial Tobacco Group PLC | 176,562 | 4,719,275 | |||
11,908,372 | |||||
AIRLINES – 0.12% | |||||
British Airways PLC1 | 133,569 | 688,047 | |||
688,047 | |||||
AUTO PARTS & EQUIPMENT – 0.16% | |||||
GKN PLC | 185,436 | 919,517 | |||
919,517 | |||||
BANKS – 20.56% | |||||
Barclays PLC2 | 1,562,895 | 17,004,618 | |||
HBOS PLC | 953,496 | 15,221,661 | |||
HSBC Holdings PLC | 2,717,739 | 45,427,214 | |||
Lloyds TSB Group PLC | 1,361,394 | 12,839,464 | |||
Royal Bank of Scotland Group PLC | 771,120 | 26,476,583 | |||
116,969,540 | |||||
BEVERAGES – 2.70% | |||||
Diageo PLC | 733,635 | 10,461,495 | |||
SABMiller PLC | 195,075 | 3,226,884 | |||
Scottish & Newcastle PLC | 195,228 | 1,685,198 | |||
15,373,577 | |||||
BUILDING MATERIALS – 0.79% | |||||
BPB PLC | 122,400 | 1,187,956 | |||
Hanson PLC | 176,868 | 1,720,855 | |||
Pilkington PLC | 263,007 | 614,098 | |||
RMC Group PLC | 58,876 | 968,811 | |||
4,491,720 | |||||
CHEMICALS – 0.86% | |||||
BOC Group PLC | 120,105 | 2,292,046 | |||
Imperial Chemical Industries PLC | 295,290 | 1,555,230 | |||
Johnson Matthey PLC | 54,621 | 1,063,933 | |||
4,911,209 | |||||
COMMERCIAL SERVICES – 1.73% | |||||
Aggreko PLC | 61,812 | 194,616 | |||
Brambles Industries PLC | 180,387 | 1,059,482 | |||
Bunzl PLC | 109,242 | 1,052,363 | |||
Capita Group PLC | 161,109 | 1,176,614 | |||
Davis Service Group PLC | 50,184 | 419,415 | |||
De La Rue PLC | 43,758 | 321,259 | |||
Group 4 Securicor PLC1 | 271,269 | 718,276 | |||
Hays PLC | 409,965 | 1,059,863 | |||
Intertek Group PLC | 38,709 | 520,303 | |||
Kidde PLC | 208,233 | 666,653 | |||
Rank Group PLC | 148,104 | 795,006 | |||
Rentokil Initial PLC | 437,427 | 1,335,130 | |||
Serco Group PLC | 113,220 | 543,434 | |||
9,862,414 | |||||
COMPUTERS – 0.11% | |||||
LogicaCMG PLC | 176,562 | 615,410 | |||
615,410 | |||||
DISTRIBUTION & WHOLESALE – 0.66% | |||||
Inchcape PLC | 18,054 | 725,926 | |||
Wolseley PLC | 141,678 | 3,025,677 | |||
3,751,603 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.14% | |||||
AMVESCAP PLC | 174,267 | 1,144,348 | |||
Cattles PLC | 77,418 | 576,209 | |||
Close Brothers Group PLC | 29,376 | 467,829 | |||
ICAP PLC | 117,657 | 662,723 | |||
London Stock Exchange PLC | 61,615 | 639,534 | |||
Man Group PLC | 68,391 | 1,775,323 | |||
Provident Financial PLC | 60,129 | 782,743 | |||
Schroders PLC | 29,070 | 412,013 | |||
6,460,722 | |||||
ELECTRIC – 2.74% | |||||
International Power PLC1 | 362,100 | 1,249,903 | |||
National Grid Transco PLC | 748,170 | 7,268,589 |
SCHEDULESOF INVESTMENTS | 67 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2005
Security | Shares | Value | |||
Scottish & Southern Energy PLC | 207,468 | $ | 3,505,798 | ||
Scottish Power PLC | 449,820 | 3,551,495 | |||
�� | |||||
15,575,785 | |||||
ELECTRONICS – 0.17% | |||||
Electrocomponents PLC | 111,078 | 643,848 | |||
Premier Farnell PLC | 95,472 | 334,148 | |||
977,996 | |||||
ENGINEERING & CONSTRUCTION – 0.72% | |||||
AMEC PLC | 76,041 | 439,297 | |||
BAA PLC | 258,111 | 3,022,030 | |||
Balfour Beatty PLC | 100,827 | 622,776 | |||
4,084,103 | |||||
ENTERTAINMENT – 0.76% | |||||
EMI Group PLC | 197,982 | 876,884 | |||
Hilton Group PLC | 382,806 | 2,311,027 | |||
William Hill PLC | 98,532 | 1,144,151 | |||
4,332,062 | |||||
FOOD – 4.44% | |||||
Cadbury Schweppes PLC | 500,463 | 4,924,720 | |||
J Sainsbury PLC | 332,622 | 1,828,714 | |||
Tate & Lyle PLC | 99,909 | 1,003,339 | |||
Tesco PLC | 1,882,818 | 11,067,579 | |||
Unilever PLC | 670,293 | 6,424,874 | |||
25,249,226 | |||||
FOOD SERVICE – 0.45% | |||||
Compass Group PLC | 528,462 | 2,549,237 | |||
2,549,237 | |||||
GAS – 0.74% | |||||
Centrica PLC | 926,109 | 4,217,760 | |||
4,217,760 | |||||
HEALTH CARE-PRODUCTS – 0.46% | |||||
Smith & Nephew PLC | 228,123 | 2,350,236 | |||
SSL International PLC | 44,982 | 260,732 | |||
2,610,968 | |||||
HOLDING COMPANIES-DIVERSIFIED – 0.18% | |||||
Tomkins PLC | 188,802 | 1,018,922 | |||
1,018,922 | |||||
HOME BUILDERS – 0.75% | |||||
Barratt Developments PLC | 56,151 | 728,255 | |||
Bellway PLC | 27,999 | 474,745 | |||
Berkeley Group Holdings (The) PLC | 26,469 | 443,451 | |||
Persimmon PLC | 67,779 | 1,015,461 | |||
Taylor Woodrow PLC | 137,547 | 794,623 | |||
Wimpey (George) PLC | 92,259 | 835,017 | |||
4,291,552 | |||||
HOME FURNISHINGS – 0.07% | |||||
MFI Furniture Group PLC | 153,000 | 397,017 | |||
397,017 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.83% | |||||
Reckitt Benckiser PLC | 149,787 | 4,730,495 | |||
4,730,495 | |||||
INSURANCE – 3.21% | |||||
Aviva PLC | 552,177 | 6,890,361 | |||
Friends Provident PLC | 459,918 | 1,454,703 | |||
Legal & General Group PLC | 1,572,993 | 3,574,353 | |||
Prudential PLC | 572,067 | 5,210,707 | |||
Royal & Sun Alliance Insurance Group PLC | 715,734 | 1,157,763 | |||
18,287,887 | |||||
IRON & STEEL – 0.20% | |||||
Corus Group PLC1 | 970,632 | 1,112,142 | |||
1,112,142 | |||||
LEISURE TIME – 0.42% | |||||
Carnival PLC | 41,157 | 2,369,755 | |||
2,369,755 | |||||
LODGING – 0.35% | |||||
InterContinental Hotels Group PLC | 154,643 | 1,984,810 | |||
1,984,810 | |||||
MANUFACTURING – 0.89% | |||||
BBA Group PLC | 110,466 | 657,318 | |||
Cookson Group PLC1 | 474,759 | 319,985 | |||
FKI PLC | 153,153 | 345,801 | |||
IMI PLC | 84,150 | 661,560 | |||
Invensys PLC1 | 1,382,070 | 465,754 | |||
Novar PLC | 108,171 | 396,821 | |||
Smiths Group PLC | 136,017 | 2,236,865 | |||
5,084,104 | |||||
MEDIA – 3.40% | |||||
British Sky Broadcasting Group PLC | 304,470 | 3,321,491 | |||
Daily Mail & General Trust PLC Class A | 72,522 | 1,023,676 |
68 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2005
Security | Shares | Value | |||
EMAP PLC | 63,342 | $ | 1,029,492 | ||
ITV PLC | 1,009,647 | 2,255,362 | |||
Pearson PLC | 194,769 | 2,392,925 | |||
Reed Elsevier PLC | 309,519 | 3,156,036 | |||
Reuters Group PLC | 347,310 | 2,760,533 | |||
Trinity Mirror PLC | 71,145 | 946,697 | |||
United Business Media PLC | 82,008 | 863,443 | |||
Yell Group | 172,431 | 1,571,428 | |||
19,321,083 | |||||
MINING – 4.71% | |||||
Anglo American PLC | 345,933 | 8,640,136 | |||
BHP Billiton PLC | 600,066 | 8,972,823 | |||
Rio Tinto PLC | 259,641 | 9,174,829 | |||
26,787,788 | |||||
OIL & GAS – 15.01% | |||||
BG Group PLC | 855,576 | 6,726,256 | |||
BP PLC | 5,235,201 | 56,657,617 | |||
Shell Transport & Trading Co. PLC | 2,343,654 | 22,024,292 | |||
85,408,165 | |||||
PACKAGING & CONTAINERS – 0.21% | |||||
Rexam PLC | 136,017 | 1,200,940 | |||
1,200,940 | |||||
PHARMACEUTICALS – 8.94% | |||||
Alliance Unichem PLC | 59,364 | 831,658 | |||
AstraZeneca PLC | 401,319 | 15,842,810 | |||
GlaxoSmithKline PLC | 1,428,561 | 34,194,680 | |||
50,869,148 | |||||
REAL ESTATE – 1.50% | |||||
British Land Co. PLC | 124,389 | 2,064,799 | |||
Great Portland Estates PLC | 29,682 | 192,482 | |||
Hammerson PLC | 69,003 | 1,175,980 | |||
Land Securities Group PLC | 112,761 | 2,985,728 | |||
Liberty International PLC | 57,987 | 1,094,881 | |||
Slough Estates PLC | 100,827 | 1,002,364 | |||
8,516,234 | |||||
RETAIL – 3.92% | |||||
Boots Group PLC | 180,081 | 2,300,898 | |||
Dixons Group PLC | 467,262 | 1,444,189 | |||
Enterprise Inns PLC | 84,456 | 1,218,964 | |||
GUS PLC | 247,095 | 4,482,326 | |||
HMV Group PLC | 92,565 | 478,608 | |||
Kesa Electricals PLC | 131,629 | 827,606 | |||
Kingfisher PLC | 564,723 | 3,170,025 | |||
Marks & Spencer Group PLC | 400,248 | 2,701,505 | |||
Mitchells & Butlers PLC | 128,267 | 852,163 | |||
Next PLC | 63,648 | 1,888,757 | |||
Punch Taverns PLC | 60,282 | 799,826 | |||
Signet Group PLC | 422,892 | 912,087 | |||
Whitebread PLC | 71,298 | 1,239,120 | |||
22,316,074 | |||||
SEMICONDUCTORS – 0.12% | |||||
ARM Holdings PLC | 319,923 | 665,362 | |||
665,362 | |||||
SOFTWARE – 0.32% | |||||
Misys PLC | 125,766 | 552,188 | |||
Sage Group PLC | 317,934 | 1,264,287 | |||
1,816,475 | |||||
TELECOMMUNICATIONS – 9.18% | |||||
BT Group PLC | 2,073,303 | 8,324,487 | |||
Cable & Wireless PLC | 570,078 | 1,407,927 | |||
Marconi Corp. PLC1 | 48,960 | 535,052 | |||
Vodafone Group PLC | 16,005,942 | 41,995,850 | |||
52,263,316 | |||||
TRANSPORTATION – 0.89% | |||||
Arriva PLC | 45,900 | 481,945 | |||
Associated British Ports Holdings PLC | 77,112 | 707,577 | |||
Exel PLC | 74,205 | 1,163,892 | |||
FirstGroup PLC | 99,756 | 670,910 | |||
National Express Group PLC | 32,895 | 562,195 | |||
Peninsular & Oriental Steam | |||||
Navigation Co. (The) | 177,786 | 1,075,018 | |||
Stagecoach Group PLC | 197,791 | 430,401 | |||
5,091,938 | |||||
VENTURE CAPITAL – 0.35% | |||||
3i Group PLC | 148,257 | 1,982,787 | |||
1,982,787 | |||||
WATER – 0.84% | |||||
Kelda Group PLC | 91,035 | 1,057,096 | |||
Severn Trent PLC | 83,844 | 1,473,308 |
SCHEDULESOF INVESTMENTS | 69 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
United Utilities PLC3 | 134,640 | $ | 1,608,809 | |||
United Utilities PLC Class A | 75,305 | 645,316 | ||||
4,784,529 | ||||||
TOTAL COMMON STOCKS | 566,313,837 | |||||
SHORT-TERM INVESTMENTS – 0.30% | ||||||
COMMERCIAL PAPER4 – 0.07% | ||||||
Amstel Funding Corp. | $ | 3,377 | 3,330 | |||
Amsterdam Funding Corp. | 8,938 | 8,935 | ||||
ANZ National Bank Ltd. | 4,063 | 4,007 | ||||
Barton Capital Corp. | 17,977 | 17,963 | ||||
Blue Ridge Asset Funding Corp. | 8,938 | 8,924 | ||||
Bryant Park Funding LLC | 813 | 812 | ||||
Chariot Funding LLC | 8,125 | 8,114 | ||||
Chesham Finance LLC | 3,250 | 3,249 | ||||
Corporate Asset Funding | 4,063 | 4,056 | ||||
CRC Funding LLC | 2,031 | 2,030 | ||||
Delaware Funding Corp. | 15,067 | 15,051 | ||||
DEPFA Bank PLC | 4,063 | 4,046 | ||||
Edison Asset Securitization | 26,406 | 26,358 | ||||
Fairway Finance LLC | 7,746 | 7,738 | ||||
Falcon Asset Securitization Corp. | 31,327 | 31,292 | ||||
Ford Credit Auto Receivables | 18,866 | 18,832 | ||||
Ford Credit Floorplan Motown | 10,156 | 10,152 | ||||
Fortis Funding LLC | 11,375 | 11,324 | ||||
General Electric Capital Corp. | 17,875 | 17,829 | ||||
Giro Funding US Corp. | 9,795 | 9,784 | ||||
Grampian Funding LLC | 23,969 | 23,674 | ||||
Jupiter Securitization Corp. | 37,069 | 37,036 | ||||
Kitty Hawk Funding Corp. | 12,188 | 12,176 | ||||
Liberty Street Funding Corp. | 4,469 | 4,465 | ||||
Moat Funding LLC | 1,625 | 1,623 | ||||
Nordea North America Inc. | 4,063 | 4,022 | ||||
Park Avenue Receivables Corp. | 12,691 | 12,683 | ||||
Park Granada LLC | 5,688 | 5,681 | ||||
Preferred Receivables Funding Corp. | 17,264 | 17,240 | ||||
Ranger Funding Co. LLC | 2,416 | 2,416 | ||||
Santander Central Hispano | 10,156 | 10,056 |
70 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Scaldis Capital LLC | $ | 2,034 | $ | 2,013 | ||
Ticonderoga Master Funding Ltd. | 13,779 | 13,759 | ||||
Tulip Funding Corp. | 13,563 | 13,563 | ||||
UBS Finance (Delaware) | 16,250 | 16,250 | ||||
Windmill Funding Corp. | 2,844 | 2,842 | ||||
Yorktown Capital LLC | 2,844 | 2,841 | ||||
396,166 | ||||||
FLOATING RATE NOTES4 – 0.11% | ||||||
Allstate Life Global Funding II | 3,738 | 3,738 | ||||
American Express Centurion Bank | 12,188 | 12,188 | ||||
American Express Credit Corp. | 16,250 | 16,255 | ||||
Bank of Nova Scotia | 5,281 | 5,280 | ||||
Beta Finance Inc. | 30,469 | 30,472 | ||||
Canadian Imperial Bank of Commerce | 27,625 | 27,620 | ||||
CC USA Inc. | 16,250 | 16,249 | ||||
Commodore CDO Ltd. | 2,031 | 2,031 | ||||
Den Danske Bank NY | 24,375 | 24,371 | ||||
DEPFA Bank PLC | 8,125 | 8,125 | ||||
Dorada Finance Inc. | 6,744 | 6,743 | ||||
Fairway Finance LLC | 12,188 | 12,187 | ||||
Fifth Third Bancorp | 16,250 | 16,250 | ||||
Five Finance Inc. | 10,563 | 10,563 | ||||
General Electric Capital Corp. | 3,656 | 3,661 | ||||
General Electric Commercial Equipment Financing LLC | 3,470 | 3,470 | ||||
Hartford Life Global Funding Trust | 8,125 | 8,125 | ||||
HBOS Treasury Services PLC | 24,375 | 24,375 | ||||
K2 USA LLC | 36,563 | 36,563 | ||||
Leafs LLC | 8,531 | 8,532 | ||||
Links Finance LLC | 33,313 | 33,321 | ||||
Lothian Mortgages PLC | 16,250 | 16,250 | ||||
MetLife Funding Inc. | 12,188 | 12,188 | ||||
National City Bank (Ohio) | 20,313 | 20,311 | ||||
Nationwide Building Society | 30,063 | 30,069 | ||||
Norddeutsche Landesbank | 8,125 | 8,124 | ||||
Northern Rock PLC | 24,375 | 24,375 |
SCHEDULESOF INVESTMENTS | 71 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Permanent Financing PLC | $ | 21,938 | $ | 21,937 | ||
Sedna Finance Inc. | 4,469 | 4,468 | ||||
Sigma Finance Inc. | 41,438 | 41,440 | ||||
Tango Finance Corp. | 25,001 | 25,001 | ||||
Wachovia Asset Securitization Inc. | 24,375 | 24,376 | ||||
Wells Fargo & Co. | 4,063 | 4,063 | ||||
WhistleJacket Capital LLC | 28,438 | 28,434 | ||||
White Pine Finance LLC | 44,444 | 44,442 | ||||
Winston Funding Ltd. | 5,801 | 5,801 | ||||
621,398 | ||||||
MEDIUM-TERM NOTES4 – 0.00% | ||||||
CC USA Inc. | 8,125 | 8,125 | ||||
8,125 | ||||||
MONEY MARKET FUNDS4 – 0.01% | ||||||
Barclays Global Investors Funds | 38,775 | 38,775 | ||||
BlackRock Temp Cash | 1,515 | 1,515 | ||||
Short-Term Investment Co.– | 3,066 | 3,066 | ||||
43,356 | ||||||
REPURCHASE AGREEMENTS4 – 0.06% | ||||||
Bank of America N.A. Repurchase Agreements, | 182,813 | 182,813 | ||||
Merrill Lynch Government Securities Inc. | 134,063 | 134,063 | ||||
316,876 | ||||||
TIME DEPOSITS4 – 0.05% | ||||||
Abbey National Treasury Services PLC | 5,688 | 5,671 | ||||
Banco Bilbao Vizcaya Argentaria SA | 12,188 | 12,188 | ||||
BNP Paribas (New York) | 11,375 | 11,376 | ||||
Credit Suisse First Boston | 8,125 | 8,125 | ||||
Deutsche Bank AG | 13,531 | 13,531 | ||||
First Tennessee Bank | 20,313 | 20,313 | ||||
HBOS Treasury Services PLC | 13,325 | 13,325 | ||||
Key Bank N.A. | 48,750 | 48,750 | ||||
Natexis Banques | 14,219 | 14,219 | ||||
Norddeutsche Landesbank | 8,125 | 8,125 | ||||
Royal Bank of Scotland | 2,031 | 2,031 |
72 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Societe Generale | $ | 813 | $ | 813 | ||
Toronto-Dominion Bank | 32,500 | 32,498 | ||||
UBS AG | 3,250 | 3,250 | ||||
Washington Mutual Bank | 37,376 | 37,376 | ||||
Wells Fargo Bank N.A. | 49,969 | 49,969 | ||||
281,560 | ||||||
U.S. GOVERNMENT AGENCY NOTES4 – 0.00% | ||||||
Federal Home Loan Mortgage Corp. | 9,738 | 9,719 | ||||
Federal National Mortgage Association | 12,188 | 12,075 | ||||
21,794 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 1,689,275 | |||||
TOTAL INVESTMENTS IN SECURITIES – 99.82% | 568,003,112 | |||||
Other Assets, Less Liabilities – 0.18% | 1,025,931 | |||||
NET ASSETS – 100.00% | $ | 569,029,043 | ||||
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
3 | All or a portion of this security represents a security on loan. See Note 5. |
4 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
5 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 73 |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2005
iShares MSCI | ||||||||||||||||||||||||
Austria Index Fund | Belgium Index Fund | EMU Index Fund | France Index Fund | Germany Index Fund | Italy Index Fund | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at cost: | ||||||||||||||||||||||||
Unaffiliated issuers | $ | 170,792,398 | $ | 71,494,826 | $ | 587,608,526 | $ | 68,665,838 | $ | 215,359,053 | $ | 45,829,851 | ||||||||||||
Affiliated issuersa | $ | 527,148 | $ | 536,315 | $ | 3,717,900 | $ | 393,714 | $ | 1,164,616 | $ | 343,524 | ||||||||||||
Foreign currencies, at cost | $ | 347,348 | $ | 70,148 | $ | 206,453 | $ | 45,830 | $ | 113,919 | $ | 10,488 | ||||||||||||
Investments in securities, at value (including securities on loanb) (Note 1): | ||||||||||||||||||||||||
Unaffiliated issuers | $ | 210,661,511 | $ | 82,293,391 | $ | 680,438,996 | $ | 73,934,841 | $ | 210,935,229 | $ | 54,756,297 | ||||||||||||
Affiliated issuersa | 527,148 | 536,315 | 3,717,900 | 393,714 | 1,164,616 | 343,524 | ||||||||||||||||||
Foreign currencies, at value | 347,631 | 69,996 | 212,087 | 47,002 | 117,121 | 10,798 | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Investment securities sold | 268,916 | — | 3,469,369 | 270,305 | 1,406,345 | 152,089 | ||||||||||||||||||
Dividends and interest | 54,040 | 21,958 | 540,344 | 64,120 | 19,349 | 71,668 | ||||||||||||||||||
Capital shares sold | — | — | 159,344 | — | — | — | ||||||||||||||||||
Total Assets | 211,859,246 | 82,921,660 | 688,538,040 | 74,709,982 | 213,642,660 | 55,334,376 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Investment securities purchased | 425,372 | 3,105,655 | 235,866 | 1,364,995 | 120,225 | |||||||||||||||||||
Collateral for securities on loan (Note 5) | 22,543,094 | 26,385,172 | 178,021,871 | 20,200,283 | 56,419,809 | 16,462,493 | ||||||||||||||||||
Investment advisory fees (Note 2) | 170,658 | 51,045 | 442,110 | 57,004 | 144,266 | 33,086 | ||||||||||||||||||
Total Liabilities | 23,139,124 | 26,436,217 | 181,569,636 | 20,493,153 | 57,929,070 | 16,615,804 | ||||||||||||||||||
NET ASSETS | $ | 188,720,122 | $ | 56,485,443 | $ | 506,968,404 | $ | 54,216,829 | $ | 155,713,590 | $ | 38,718,572 | ||||||||||||
Net assets consist of: | ||||||||||||||||||||||||
Paid-in capital | $ | 142,247,228 | $ | 48,690,299 | $ | 431,915,378 | $ | 50,006,791 | $ | 195,305,188 | $ | 35,176,778 | ||||||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) | (495,812 | ) | (335,040 | ) | 79,797 | 150,972 | 24,518 | (28,848 | ) | |||||||||||||||
Undistributed net realized gain (accumulated net realized loss) | 7,096,470 | (2,672,620 | ) | (17,890,713 | ) | (1,216,411 | ) | (35,195,860 | ) | (5,376,774 | ) | |||||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 39,872,236 | 10,802,804 | 92,863,942 | 5,275,477 | (4,420,256 | ) | 8,947,416 | |||||||||||||||||
NET ASSETS | $ | 188,720,122 | $ | 56,485,443 | $ | 506,968,404 | $ | 54,216,829 | $ | 155,713,590 | $ | 38,718,572 | ||||||||||||
Shares outstanding | 7,800,000 | 2,960,000 | 6,850,000 | 2,200,000 | 8,400,000 | 1,500,000 | ||||||||||||||||||
Net asset value per share | $ | 24.19 | $ | 19.08 | $ | 74.01 | $ | 24.64 | $ | 18.54 | $ | 25.81 | ||||||||||||
a | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market values of $21,453,990, $25,117,695, $169,381,192, $19,228,988, $53,716,178 and $15,616,130, respectively. See Note 5. |
See notes to financial statements.
74 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC .
February 28, 2005
iShares MSCI | |||||||||||||||||||
Netherlands Index Fund | Spain Index Fund | Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | |||||||||||||||
ASSETS | |||||||||||||||||||
Investments, at cost: | |||||||||||||||||||
Unaffiliated issuers | $ | 56,595,735 | $ | 65,981,701 | $ | 70,015,874 | $ | 59,606,065 | $ | 483,793,960 | |||||||||
Affiliated issuersa | $ | 217,506 | $ | 320,071 | $ | 409,701 | $ | 201,110 | $ | 13,755,978 | |||||||||
Foreign currencies, at cost | $ | 38,147 | $ | 50,093 | $ | 59,370 | $ | 11,454 | $ | 939,156 | |||||||||
Investments in securities, at value (including securities on loanb) (Note 1): | |||||||||||||||||||
Unaffiliated issuers | $ | 61,418,304 | $ | 81,211,556 | $ | 84,027,848 | $ | 71,038,364 | $ | 550,959,719 | |||||||||
Affiliated issuersa | 217,506 | 320,071 | 409,701 | 201,110 | 17,043,393 | ||||||||||||||
Foreign currencies, at value | 37,163 | 51,263 | 59,296 | 11,342 | 960,985 | ||||||||||||||
Receivables: | |||||||||||||||||||
Investment securities sold | 71,926 | 482,981 | 1,043,907 | 476,806 | 1,278,456 | ||||||||||||||
Dividends and interest | 224,206 | 6,266 | 3,189 | 112,716 | 2,344,546 | ||||||||||||||
Capital shares sold | — | — | — | 864,806 | — | ||||||||||||||
Total Assets | 61,969,105 | 82,072,137 | 85,543,941 | 72,705,144 | 572,587,099 | ||||||||||||||
LIABILITIES | |||||||||||||||||||
Payables: | |||||||||||||||||||
Investment securities purchased | 59,386 | 471,247 | 1,008,478 | 433,269 | 1,340,653 | ||||||||||||||
Collateral for securities on loan (Note 5) | 10,211,716 | 14,486,156 | 21,017,890 | 8,971,683 | 1,683,000 | ||||||||||||||
Investment advisory fees | 43,080 | 59,797 | 58,005 | 53,067 | 534,403 | ||||||||||||||
Total Liabilities | 10,314,182 | 15,017,200 | 22,084,373 | 9,458,019 | 3,558,056 | ||||||||||||||
NET ASSETS | $ | 51,654,923 | $ | 67,054,937 | $ | 63,459,568 | $ | 63,247,125 | $ | 569,029,043 | |||||||||
Net assets consist of: | |||||||||||||||||||
Paid-in capital | $ | 54,952,595 | $ | 49,306,034 | $ | 56,825,296 | $ | 58,444,027 | $ | 506,630,125 | |||||||||
Undistributed net investment income (accumulated net investment loss) | 172,343 | 269,627 | (130,467 | ) | (118,002 | ) | 1,710,680 | ||||||||||||
Undistributed net realized gain (accumulated net realized loss) | (8,297,152 | ) | 2,248,178 | (7,247,046 | ) | (6,531,765 | ) | (9,831,075 | ) | ||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 4,827,137 | 15,231,098 | 14,011,785 | 11,452,865 | 70,519,313 | ||||||||||||||
NET ASSETS | $ | 51,654,923 | $ | 67,054,937 | $ | 63,459,568 | $ | 63,247,125 | $ | 569,029,043 | |||||||||
Shares outstanding | 2,650,000 | 1,875,000 | 3,000,000 | 3,625,000 | 30,600,000 | ||||||||||||||
Net asset value per share | $ | 19.49 | $ | 35.76 | $ | 21.15 | $ | 17.45 | $ | 18.60 | |||||||||
a | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market values of $9,712,982, $13,779,653, $19,992,846, $8,543,161 and $1,598,831, respectively. See Note 5. |
See notes to financial statements.
FINANCIAL STATEMENTS | 75 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
For the six months ended February 28, 2005
iShares MSCI | ||||||||||||||||||||||||
Austria Index Fund | Belgium Index Fund | EMU Index Fund | France Index Fund | Germany Index Fund | Italy Index Fund | |||||||||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||||||||||
Dividendsa | $ | — | $ | 62,635 | $ | 2,329,897 | $ | 417,945 | $ | 340,916 | $ | 123,350 | ||||||||||||
Interest from affiliated issuersb | 799 | 318 | 1,595 | 326 | 546 | 183 | ||||||||||||||||||
Securities lending incomec | 11,304 | 13,027 | 147,208 | 27,390 | 47,900 | 17,080 | ||||||||||||||||||
Total investment income | 12,103 | 75,980 | 2,478,700 | 445,661 | 389,362 | 140,613 | ||||||||||||||||||
EXPENSES (Note 2) | ||||||||||||||||||||||||
Investment advisory fees | 346,426 | 122,600 | 1,163,556 | 180,692 | 364,844 | 92,968 | ||||||||||||||||||
Total expenses | 346,426 | 122,600 | 1,163,556 | 180,692 | 364,844 | 92,968 | ||||||||||||||||||
Net investment income (loss) | (334,323 | ) | (46,620 | ) | 1,315,144 | 264,969 | 24,518 | 47,645 | ||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||||||
Investments | 241,581 | 28,307 | (2,406,933 | ) | (465,010 | ) | (1,700,271 | ) | (133,239 | ) | ||||||||||||||
In-kind redemptions | 10,388,457 | 362,808 | 1,784,895 | 5,873,067 | — | — | ||||||||||||||||||
Foreign currency transactions | 1,452 | 316 | 26,398 | (10,342 | ) | (516 | ) | 8,861 | ||||||||||||||||
Net realized gain (loss) | 10,631,490 | 391,431 | (595,640 | ) | 5,397,715 | (1,700,787 | ) | (124,378 | ) | |||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||
Investments | 27,926,174 | 9,857,512 | 91,546,552 | 6,643,764 | 27,617,205 | 8,545,994 | ||||||||||||||||||
Translation of assets and liabilities in foreign currencies | 2,451 | 1,037 | 52,876 | 22,434 | 9,470 | 6,950 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 27,928,625 | 9,858,549 | 91,599,428 | 6,666,198 | 27,626,675 | 8,552,944 | ||||||||||||||||||
Net realized and unrealized gain | 38,560,115 | 10,249,980 | 91,003,788 | 12,063,913 | 25,925,888 | 8,428,566 | ||||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 38,225,792 | $ | 10,203,360 | $ | 92,318,932 | $ | 12,328,882 | $ | 25,950,406 | $ | 8,476,211 | ||||||||||||
a | Net of foreign withholding tax of $—, $5,189, $36,157, $7,267, $5,788 and $797, respectively. |
b | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
c | Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2. |
See notes to financial statements.
76 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC .
For the six months ended February 28, 2005
iShares MSCI | |||||||||||||||||||
Netherlands Index Fund | Spain Index Fund | Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | |||||||||||||||
NET INVESTMENT INCOME | |||||||||||||||||||
Dividendsa | $ | 271,667 | $ | 697,344 | $ | — | $ | 21,208 | $ | 6,732,247 | |||||||||
Dividends from affiliated issuersb | — | — | — | — | 523,062 | ||||||||||||||
Interest from affiliated issuersb | 205 | 365 | 139 | 156 | 2,228 | ||||||||||||||
Securities lending incomec | 7,580 | 22,864 | 10,998 | 1,792 | 8,222 | ||||||||||||||
Total investment income | 279,452 | 720,573 | 11,137 | 23,156 | 7,265,759 | ||||||||||||||
EXPENSES (Note 2) | |||||||||||||||||||
Investment advisory fees | 104,452 | 156,691 | 139,090 | 141,158 | 1,523,796 | ||||||||||||||
Stock dividend taxes | — | — | 2,514 | — | — | ||||||||||||||
Total expenses | 104,452 | 156,691 | 141,604 | 141,158 | 1,523,796 | ||||||||||||||
Net investment income (loss) | 175,000 | 563,882 | (130,467 | ) | (118,002 | ) | 5,741,963 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | |||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments | (116,374 | ) | 334,538 | (187,500 | ) | 154,420 | (5,403,072 | ) | |||||||||||
Investments in affiliated issuersb | — | — | — | — | 1,677,583 | ||||||||||||||
In-kind redemptions | — | 6,546,984 | — | 592,584 | 21,004,746 | ||||||||||||||
Foreign currency transactions | 5,927 | 3,511 | 2,256 | (744 | ) | 3,113 | |||||||||||||
Net realized gain (loss) | (110,447 | ) | 6,885,033 | (185,244 | ) | 746,260 | 17,282,370 | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||||||
Investments | 8,510,575 | 6,819,878 | 9,673,773 | 8,241,779 | 73,554,127 | ||||||||||||||
Translation of assets and liabilities in foreign currencies | 4,530 | 1,619 | (36 | ) | 11,079 | 108,271 | |||||||||||||
Net change in unrealized appreciation (depreciation) | 8,515,105 | 6,821,497 | 9,673,737 | 8,252,858 | 73,662,398 | ||||||||||||||
Net realized and unrealized gain | 8,404,658 | 13,706,530 | 9,488,493 | 8,999,118 | 90,944,768 | ||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 8,579,658 | $ | 14,270,412 | $ | 9,358,026 | $ | 8,881,116 | $ | 96,686,731 | |||||||||
a | Net of foreign withholding tax of $1,265, $20,154, $—, $— and $—, respectively. |
b | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
c | Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2. |
See notes to financial statements.
FINANCIAL STATEMENTS | 77 |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Austria Index Fund | iShares MSCI Belgium Index Fund | iShares MSCI EMU Index Fund | ||||||||||||||||||||||
For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (334,323 | ) | $ | 498,538 | $ | (46,620 | ) | $ | 525,871 | $ | 1,315,144 | $ | 6,589,669 | ||||||||||
Net realized gain (loss) | 10,631,490 | 3,919,431 | 391,431 | 2,236,862 | (595,640 | ) | 8,857,335 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 27,928,625 | 8,637,559 | 9,858,549 | 2,626,962 | 91,599,428 | 19,792,119 | ||||||||||||||||||
Net increase in net assets resulting from operations | 38,225,792 | 13,055,528 | 10,203,360 | 5,389,695 | 92,318,932 | 35,239,123 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (642,119 | ) | (272,938 | ) | (821,720 | ) | (884,836 | ) | (7,926,598 | ) | (3,047,220 | ) | ||||||||||||
Total distributions to shareholders | (642,119 | ) | (272,938 | ) | (821,720 | ) | (884,836 | ) | (7,926,598 | ) | (3,047,220 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | 110,941,441 | 32,913,587 | 24,684,879 | 19,364,816 | 102,208,449 | 175,480,082 | ||||||||||||||||||
Cost of shares redeemed | (17,725,212 | ) | (10,064,261 | ) | (2,393,681 | ) | (20,928,283 | ) | (6,238,133 | ) | (46,454,697 | ) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | 93,216,229 | 22,849,326 | 22,291,198 | (1,563,467 | ) | 95,970,316 | 129,025,385 | |||||||||||||||||
INCREASE IN NET ASSETS | 130,799,902 | 35,631,916 | 31,672,838 | 2,941,392 | 180,362,650 | 161,217,288 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 57,920,220 | 22,288,304 | 24,812,605 | 21,871,213 | 326,605,754 | 165,388,466 | ||||||||||||||||||
End of period | $ | 188,720,122 | $ | 57,920,220 | $ | 56,485,443 | $ | 24,812,605 | $ | 506,968,404 | $ | 326,605,754 | ||||||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | (495,812 | ) | $ | 480,630 | $ | (335,040 | ) | $ | 533,300 | $ | 79,797 | $ | 6,691,251 | ||||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | 5,200,000 | 2,100,000 | 1,440,000 | 1,360,000 | 1,450,000 | 2,950,000 | ||||||||||||||||||
Shares redeemed | (800,000 | ) | (800,000 | ) | (160,000 | ) | (1,640,000 | ) | (100,000 | ) | (750,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 4,400,000 | 1,300,000 | 1,280,000 | (280,000 | ) | 1,350,000 | 2,200,000 | |||||||||||||||||
See notes to financial statements.
78 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI France Index Fund | iShares MSCI Germany Index Fund | iShares MSCI Italy Index Fund | ||||||||||||||||||||||
For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 264,969 | $ | 698,891 | $ | 24,518 | $ | 1,574,590 | $ | 47,645 | $ | 777,612 | ||||||||||||
Net realized gain (loss) | 5,397,715 | 1,787,933 | (1,700,787 | ) | 9,845,575 | (124,378 | ) | 449,897 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 6,666,198 | 8,599,182 | 27,626,675 | 9,717,674 | 8,552,944 | 4,880,596 | ||||||||||||||||||
Net increase in net assets resulting from operations | 12,328,882 | 11,086,006 | 25,950,406 | 21,137,839 | 8,476,211 | 6,108,105 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (838,342 | ) | (794,879 | ) | (1,573,473 | ) | (1,804,102 | ) | (869,122 | ) | (824,876 | ) | ||||||||||||
Total distributions to shareholders | (838,342 | ) | (794,879 | ) | (1,573,473 | ) | (1,804,102 | ) | (869,122 | ) | (824,876 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | — | 4,101,648 | 32,572,922 | 37,742,897 | 3,832,071 | — | ||||||||||||||||||
Cost of shares redeemed | (18,474,472 | ) | (7,267,190 | ) | — | (60,113,109 | ) | — | (8,001,044 | ) | ||||||||||||||
Net increase (decrease) in net assets from capital share transactions | (18,474,472 | ) | (3,165,542 | ) | 32,572,922 | (22,370,212 | ) | 3,832,071 | (8,001,044 | ) | ||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | (6,983,932 | ) | 7,125,585 | 56,949,855 | (3,036,475 | ) | 11,439,160 | (2,717,815 | ) | |||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 61,200,761 | 54,075,176 | 98,763,735 | 101,800,210 | 27,279,412 | 29,997,227 | ||||||||||||||||||
End of period | $ | 54,216,829 | $ | 61,200,761 | $ | 155,713,590 | $ | 98,763,735 | $ | 38,718,572 | $ | 27,279,412 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 150,972 | $ | 724,345 | $ | 24,518 | $ | 1,573,473 | $ | (28,848 | ) | $ | 792,629 | |||||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | — | 200,000 | 1,800,000 | 2,400,000 | 150,000 | — | ||||||||||||||||||
Shares redeemed | (800,000 | ) | (400,000 | ) | — | (3,900,000 | ) | — | (450,000 | ) | ||||||||||||||
Net increase (decrease) in shares outstanding | (800,000 | ) | (200,000 | ) | 1,800,000 | (1,500,000 | ) | 150,000 | (450,000 | ) | ||||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 79 |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Netherlands Index Fund | iShares MSCI Spain Index Fund | iShares MSCI Sweden Index Fund | ||||||||||||||||||||||
For the six months ended February 28, 2005 (Unaudited) | For the year ended | For the six months ended February 28, 2005 (Unaudited) | For the year ended | For the six months ended February 28, 2005 (Unaudited) | For the year ended | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 175,000 | $ | 547,447 | $ | 563,882 | $ | 782,782 | $ | (130,467 | ) | $ | 420,927 | |||||||||||
Net realized gain (loss) | (110,447 | ) | (220,571 | ) | 6,885,033 | 3,958,943 | (185,244 | ) | 15,743 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | 8,515,105 | 1,720,975 | 6,821,497 | 5,008,839 | 9,673,737 | 5,562,688 | ||||||||||||||||||
Net increase in net assets resulting from operations | 8,579,658 | 2,047,851 | 14,270,412 | 9,750,564 | 9,358,026 | 5,999,358 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (561,271 | ) | (480,580 | ) | (1,053,358 | ) | (464,559 | ) | (420,504 | ) | (332,115 | ) | ||||||||||||
Total distributions to shareholders | (561,271 | ) | (480,580 | ) | (1,053,358 | ) | (464,559 | ) | (420,504 | ) | (332,115 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | 15,371,531 | 8,098,478 | 23,479,414 | 2,263,744 | 26,763,849 | 5,099,033 | ||||||||||||||||||
Cost of shares redeemed | — | — | (15,097,858 | ) | (16,465,374 | ) | — | — | ||||||||||||||||
Net increase (decrease) in net assets from capital share transactions | 15,371,531 | 8,098,478 | 8,381,556 | (14,201,630 | ) | 26,763,849 | 5,099,033 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | 23,389,918 | 9,665,749 | �� | 21,598,610 | (4,915,625 | ) | 35,701,371 | 10,766,276 | ||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 28,265,005 | 18,599,256 | 45,456,327 | 50,371,952 | 27,758,197 | 16,991,921 | ||||||||||||||||||
End of period | $ | 51,654,923 | $ | 28,265,005 | $ | 67,054,937 | $ | 45,456,327 | $ | 63,459,568 | $ | 27,758,197 | ||||||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | 172,343 | $ | 558,614 | $ | 269,627 | $ | 759,103 | $ | (130,467 | ) | $ | 420,504 | |||||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | 850,000 | 500,000 | 675,000 | 75,000 | 1,350,000 | 300,000 | ||||||||||||||||||
Shares redeemed | — | — | (450,000 | ) | (675,000 | ) | — | — | ||||||||||||||||
Net increase (decrease) in shares outstanding | 850,000 | 500,000 | 225,000 | (600,000 | ) | 1,350,000 | 300,000 | |||||||||||||||||
See notes to financial statements.
80 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Switzerland Index Fund | iShares MSCI United Kingdom Index Fund | |||||||||||||||
For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (118,002 | ) | $ | 267,243 | $ | 5,741,963 | $ | 7,712,465 | |||||||
Net realized gain (loss) | 746,260 | (117,551 | ) | 17,282,370 | (2,229,963 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 8,252,858 | 6,459,446 | 73,662,398 | 28,384,261 | ||||||||||||
Net increase in net assets resulting from operations | 8,881,116 | 6,609,138 | 96,686,731 | 33,866,763 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (269,799 | ) | (146,432 | ) | (10,962,863 | ) | (5,320,972 | ) | ||||||||
Total distributions to shareholders | (269,799 | ) | (146,432 | ) | (10,962,863 | ) | (5,320,972 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 14,600,161 | 3,722,134 | 96,935,421 | 281,527,046 | ||||||||||||
Cost of shares redeemed | (1,884,522 | ) | (1,907,959 | ) | (66,500,344 | ) | (8,011,981 | ) | ||||||||
Net increase in net assets from capital share transactions | 12,715,639 | 1,814,175 | 30,435,077 | 273,515,065 | ||||||||||||
INCREASE IN NET ASSETS | 21,326,956 | 8,276,881 | 116,158,945 | 302,060,856 | ||||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 41,920,169 | 33,643,288 | 452,870,098 | 150,809,242 | ||||||||||||
End of period | $ | 63,247,125 | $ | 41,920,169 | $ | 569,029,043 | $ | 452,870,098 | ||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | (118,002 | ) | $ | 269,799 | $ | 1,710,680 | $ | 6,931,580 | |||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||
Shares sold | 875,000 | 250,000 | 5,600,000 | 17,800,000 | ||||||||||||
Shares redeemed | (125,000 | ) | (125,000 | ) | (3,800,000 | ) | (600,000 | ) | ||||||||
Net increase in shares outstanding | 750,000 | 125,000 | 1,800,000 | 17,200,000 | ||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 81 |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Austria Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2005 | Year ended Dec. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.04 | $ | 10.61 | $ | 8.19 | $ | 8.18 | $ | 7.67 | $ | 9.13 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.06 | ) | 0.21 | 0.09 | 0.13 | 0.13 | 0.04 | |||||||||||||||||
Net realized and unrealized gain (loss) | 7.30 | 6.39 | 2.43 | (0.12 | ) | 0.52 | (1.46 | ) | ||||||||||||||||
Total from investment operations | 7.24 | 6.60 | 2.52 | 0.01 | 0.65 | (1.42 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.17 | ) | (0.10 | ) | — | (0.14 | ) | (0.04 | ) | |||||||||||||
Return of capital | — | — | — | — | (0.00 | )e | — | |||||||||||||||||
Total distributions | (0.09 | ) | (0.17 | ) | (0.10 | ) | — | (0.14 | ) | (0.04 | ) | |||||||||||||
Net asset value, end of period | $ | 24.19 | $ | 17.04 | $ | 10.61 | $ | 8.19 | $ | 8.18 | $ | 7.67 | ||||||||||||
Total return | 42.57 | %b | 62.70 | % | 31.15 | % | 0.12 | % | 8.41 | % | (15.51 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 188,720 | $ | 57,920 | $ | 22,288 | $ | 14,740 | $ | 11,447 | $ | 10,741 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.77 | % | 0.84 | % | 0.84 | % | 0.84 | %f | 1.16 | %f | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.56 | )% | 1.37 | % | 0.98 | % | 1.57 | % | 1.69 | %g | 0.51 | %g | ||||||||||||
Portfolio turnover rated | 5 | % | 11 | % | 26 | % | 32 | % | 66 | % | 34 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Rounds to less than $0.01. |
f | Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the years ended August 31, 2001 and August 31, 2000 were 0.97% and 1.20%, respectively. |
g | Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the years ended August 31, 2001 and August 31, 2000 were 1.55% and 0.47%, respectively. |
See notes to financial statements.
82 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Belgium Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 14.77 | $ | 11.16 | $ | 10.43 | $ | 11.81 | $ | 13.23 | $ | 16.07 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.02 | ) | 0.37 | 0.41 | 0.25 | 0.19 | 0.19 | |||||||||||||||||
Net realized and unrealized gain (loss) | 4.62 | 4.25 | 0.43 | (1.56 | ) | (1.34 | ) | (2.67 | ) | |||||||||||||||
Total from investment operations | 4.60 | 4.62 | 0.84 | (1.31 | ) | (1.15 | ) | (2.48 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.29 | ) | (1.01 | ) | (0.11 | ) | (0.07 | ) | (0.27 | ) | (0.36 | ) | ||||||||||||
Total distributions | (0.29 | ) | (1.01 | ) | (0.11 | ) | (0.07 | ) | (0.27 | ) | (0.36 | ) | ||||||||||||
Net asset value, end of period | $ | 19.08 | $ | 14.77 | $ | 11.16 | $ | 10.43 | $ | 11.81 | $ | 13.23 | ||||||||||||
Total return | 31.19 | %b | 42.88 | % | 8.25 | % | (11.10 | )% | (8.72 | )% | (15.50 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 56,485 | $ | 24,813 | $ | 21,871 | $ | 10,427 | $ | 9,918 | $ | 13,230 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.78 | % | 0.84 | % | 0.84 | % | 0.84 | %e | 1.13 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.22 | )% | 2.79 | % | 4.10 | % | 2.26 | % | 1.60 | %f | 1.36 | % | ||||||||||||
Portfolio turnover rated | 5 | % | 21 | % | 8 | % | 18 | % | 36 | % | 53 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2001 was 0.87%. |
f | Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2001 was 1.57%. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 83 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI EMU Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Period from Jul. 25, 2000a to Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 59.38 | $ | 50.12 | $ | 46.02 | $ | 56.74 | $ | 76.02 | $ | 80.72 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)b | 0.22 | 1.36 | 0.93 | 0.75 | 0.72 | (0.00 | )f | |||||||||||||||||
Net realized and unrealized gain (loss) | 15.71 | 8.69 | 3.62 | (11.47 | ) | (19.32 | ) | (4.70 | ) | |||||||||||||||
Total from investment operations | 15.93 | 10.05 | 4.55 | (10.72 | ) | (18.60 | ) | (4.70 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.30 | ) | (0.79 | ) | (0.45 | ) | — | (0.42 | ) | — | ||||||||||||||
Return of capital | — | — | — | — | (0.26 | ) | — | |||||||||||||||||
Total distributions | (1.30 | ) | (0.79 | ) | (0.45 | ) | — | (0.68 | ) | — | ||||||||||||||
Net asset value, end of period | $ | 74.01 | $ | 59.38 | $ | 50.12 | $ | 46.02 | $ | 56.74 | $ | 76.02 | ||||||||||||
Total return | 26.90 | %c | 20.07 | % | 10.05 | % | (18.89 | )% | (24.51 | )% | (5.82 | )%c | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 506,968 | $ | 326,606 | $ | 165,388 | $ | 131,168 | $ | 90,779 | $ | 41,811 | ||||||||||||
Ratio of expenses to average net assetsd | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | %g | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsd | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.66 | % | 2.29 | % | 2.08 | % | 1.44 | % | 1.13 | % | 0.03 | %h | ||||||||||||
Portfolio turnover ratee | 5 | % | 11 | % | 7 | % | 3 | % | 24 | % | 0 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
f | Rounds to less than $0.01. |
g | Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 1.57%. |
h | Ratio of net investment loss to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was (0.70)%. |
See notes to financial statements.
84 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI France Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.40 | $ | 16.90 | $ | 15.52 | $ | 19.53 | $ | 26.41 | $ | 22.90 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.10 | 0.24 | 0.23 | 0.18 | 0.06 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 4.44 | 3.54 | 1.33 | (4.19 | ) | (6.89 | ) | 5.21 | ||||||||||||||||
Total from investment operations | 4.54 | 3.78 | 1.56 | (4.01 | ) | (6.83 | ) | 5.31 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.30 | ) | (0.28 | ) | (0.18 | ) | — | (0.04 | ) | (0.11 | ) | |||||||||||||
Net realized gain | — | — | — | — | (0.00 | )e | (1.67 | ) | ||||||||||||||||
Return of capital | — | — | — | — | (0.01 | ) | (0.02 | ) | ||||||||||||||||
Total distributions | (0.30 | ) | (0.28 | ) | (0.18 | ) | — | (0.05 | ) | (1.80 | ) | |||||||||||||
Net asset value, end of period | $ | 24.64 | $ | 20.40 | $ | 16.90 | $ | 15.52 | $ | 19.53 | $ | 26.41 | ||||||||||||
Total return | 22.31 | %b | 22.44 | % | 10.22 | % | (20.53 | )% | (25.86 | )% | 23.45 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 54,217 | $ | 61,201 | $ | 54,075 | $ | 49,674 | $ | 58,602 | $ | 95,116 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.96 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 0.85 | % | 1.23 | % | 1.56 | % | 1.00 | % | 0.28 | % | 0.36 | % | ||||||||||||
Portfolio turnover rated | 4 | % | 9 | % | 9 | % | 3 | % | 14 | % | 17 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Rounds to less than $0.01. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 85 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Germany Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 14.96 | $ | 12.57 | $ | 12.07 | $ | 15.19 | $ | 20.46 | $ | 21.17 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | — | 0.19 | 0.21 | 0.11 | 0.18 | 0.18 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 3.77 | 2.40 | 0.41 | (3.23 | ) | (5.26 | ) | 1.64 | ||||||||||||||||
Total from investment operations | 3.77 | 2.59 | 0.62 | (3.12 | ) | (5.08 | ) | 1.82 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.20 | ) | (0.12 | ) | — | (0.19 | ) | (0.17 | ) | |||||||||||||
Net realized gain | — | — | — | — | — | (2.32 | ) | |||||||||||||||||
Return of capital | — | — | — | — | (0.00 | )e | (0.04 | ) | ||||||||||||||||
Total distributions | (0.19 | ) | (0.20 | ) | (0.12 | ) | — | (0.19 | ) | (2.53 | ) | |||||||||||||
Net asset value, end of period | $ | 18.54 | $ | 14.96 | $ | 12.57 | $ | 12.07 | $ | 15.19 | $ | 20.46 | ||||||||||||
Total return | 25.24 | %b | 20.55 | % | 5.39 | % | (20.54 | )% | (24.87 | )% | 8.44 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 155,714 | $ | 98,764 | $ | 101,800 | $ | 94,160 | $ | 118,525 | $ | 153,487 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.80 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.94 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 0.04 | % | 1.27 | % | 1.98 | % | 0.77 | % | 0.99 | % | 0.73 | % | ||||||||||||
Portfolio turnover rated | 2 | % | 9 | % | 11 | % | 9 | % | 20 | % | 56 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Rounds to less than $0.01. |
See notes to financial statements.
86 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Italy Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.21 | $ | 16.67 | $ | 15.15 | $ | 17.79 | $ | 22.23 | $ | 21.56 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.04 | 0.56 | 0.43 | 0.37 | 0.24 | 0.39 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 6.20 | 3.59 | 1.47 | (3.01 | ) | (4.37 | ) | 2.51 | ||||||||||||||||
Total from investment operations | 6.24 | 4.15 | 1.90 | (2.64 | ) | (4.13 | ) | 2.90 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.64 | ) | (0.61 | ) | (0.38 | ) | — | (0.24 | ) | (0.12 | ) | |||||||||||||
Net realized gain | — | — | — | — | (0.07 | ) | (1.80 | ) | ||||||||||||||||
Return of capital | — | — | — | — | (0.00 | )e | (0.31 | ) | ||||||||||||||||
Total distributions | (0.64 | ) | (0.61 | ) | (0.38 | ) | — | (0.31 | ) | (2.23 | ) | |||||||||||||
Net asset value, end of period | $ | 25.81 | $ | 20.21 | $ | 16.67 | $ | 15.15 | $ | 17.79 | $ | 22.23 | ||||||||||||
Total return | 30.95 | %b | 25.09 | % | 12.79 | % | (14.84 | )% | (18.61 | )% | 13.35 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 38,719 | $ | 27,279 | $ | 29,997 | $ | 29,538 | $ | 34,682 | $ | 50,008 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.83 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.99 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsc | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.99 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 0.30 | % | 2.85 | % | 2.84 | % | 2.34 | % | 1.16 | % | 1.61 | % | ||||||||||||
Portfolio turnover rated | 8 | % | 9 | % | 22 | % | 10 | % | 20 | % | 40 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Rounds to less than $0.01. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 87 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Netherlands Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.70 | $ | 14.31 | $ | 14.69 | $ | 18.59 | $ | 23.53 | $ | 23.45 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.09 | 0.39 | 0.30 | 0.25 | 0.28 | 0.13 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 3.96 | 1.37 | (0.43 | ) | (4.11 | ) | (4.94 | ) | 0.18 | |||||||||||||||
Total from investment operations | 4.05 | 1.76 | (0.13 | ) | (3.86 | ) | (4.66 | ) | 0.31 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.26 | ) | (0.37 | ) | (0.25 | ) | (0.04 | ) | (0.28 | ) | (0.08 | ) | ||||||||||||
Net realized gain | — | — | — | — | — | (0.11 | ) | |||||||||||||||||
Return of capital | — | — | — | — | — | (0.04 | ) | |||||||||||||||||
Total distributions | (0.26 | ) | (0.37 | ) | (0.25 | ) | (0.04 | ) | (0.28 | ) | (0.23 | ) | ||||||||||||
Net asset value, end of period | $ | 19.49 | $ | 15.70 | $ | 14.31 | $ | 14.69 | $ | 18.59 | $ | 23.53 | ||||||||||||
Total return | 25.92 | %b | 12.28 | % | (0.78 | )% | (20.79 | )% | (19.83 | )% | 1.28 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 51,655 | $ | 28,265 | $ | 18,599 | $ | 19,103 | $ | 24,184 | $ | 30,613 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.78 | % | 0.84 | % | 0.84 | % | 0.84 | % | 1.03 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 0.98 | % | 2.45 | % | 2.37 | % | 1.48 | % | 1.34 | % | 0.53 | % | ||||||||||||
Portfolio turnover rated | 1 | % | 9 | % | 18 | % | 15 | % | 35 | % | 22 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
88 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Spain Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 27.55 | $ | 22.39 | $ | 17.95 | $ | 21.33 | $ | 24.19 | $ | 25.59 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.34 | 0.44 | 0.24 | 0.17 | 0.19 | 0.15 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 8.48 | 4.99 | 4.36 | (3.55 | ) | (2.89 | ) | (0.60 | ) | |||||||||||||||
Total from investment operations | 8.82 | 5.43 | 4.60 | (3.38 | ) | (2.70 | ) | (0.45 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.61 | ) | (0.27 | ) | (0.16 | ) | — | (0.16 | ) | (0.14 | ) | |||||||||||||
Net realized gain | — | — | — | — | — | (0.80 | ) | |||||||||||||||||
Return of capital | — | — | — | — | (0.00 | )e | (0.01 | ) | ||||||||||||||||
Total distributions | (0.61 | ) | (0.27 | ) | (0.16 | ) | — | (0.16 | ) | (0.95 | ) | |||||||||||||
Net asset value, end of period | $ | 35.76 | $ | 27.55 | $ | 22.39 | $ | 17.95 | $ | 21.33 | $ | 24.19 | ||||||||||||
Total return | 32.08 | %b | 24.28 | % | 25.81 | % | (15.85 | )% | (11.17 | )% | (1.81 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 67,055 | $ | 45,456 | $ | 50,372 | $ | 18,850 | $ | 27,198 | $ | 39,913 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.80 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.99 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 2.10 | % | 1.64 | % | 1.22 | % | 0.85 | % | 0.82 | % | 0.57 | % | ||||||||||||
Portfolio turnover rated | 5 | % | 6 | % | 17 | % | 14 | % | 26 | % | 39 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Rounds to less than $0.01. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 89 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Sweden Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.82 | $ | 12.59 | $ | 9.88 | $ | 12.88 | $ | 24.38 | $ | 22.26 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.05 | ) | 0.28 | 0.25 | 0.12 | 0.07 | 0.14 | |||||||||||||||||
Net realized and unrealized gain (loss) | 4.53 | 4.20 | 2.58 | (3.12 | ) | (11.52 | ) | 8.38 | ||||||||||||||||
Total from investment operations | 4.48 | 4.48 | 2.83 | (3.00 | ) | (11.45 | ) | 8.52 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.25 | ) | (0.12 | ) | — | (0.05 | ) | (0.14 | ) | |||||||||||||
Net realized gain | — | — | — | — | — | (6.22 | ) | |||||||||||||||||
Return of capital | — | — | — | — | (0.00 | )e | (0.04 | ) | ||||||||||||||||
Total distributions | (0.15 | ) | (0.25 | ) | (0.12 | ) | — | (0.05 | ) | (6.40 | ) | |||||||||||||
Net asset value, end of period | $ | 21.15 | $ | 16.82 | $ | 12.59 | $ | 9.88 | $ | 12.88 | $ | 24.38 | ||||||||||||
Total return | 26.64 | %b | 35.81 | % | 29.04 | % | (23.29 | )% | (46.99 | )% | 39.15 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 63,460 | $ | 27,758 | $ | 16,992 | $ | 8,154 | $ | 10,630 | $ | 23,774 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.92 | % | 0.84 | % | 0.84 | % | 0.84 | % | 1.03 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsc | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | 1.03 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.55 | )% | 1.74 | % | 2.44 | % | 0.98 | % | 0.40 | % | 0.46 | % | ||||||||||||
Portfolio turnover rated | 3 | % | 9 | % | 12 | % | 31 | % | 43 | % | 90 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Rounds to less than $0.01. |
See notes to financial statements.
90 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Switzerland Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 14.58 | $ | 12.23 | $ | 11.59 | $ | 12.95 | $ | 15.54 | $ | 15.39 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.04 | ) | 0.09 | 0.05 | 0.03 | 0.04 | 0.04 | |||||||||||||||||
Net realized and unrealized gain (loss) | 3.00 | 2.31 | 0.62 | (1.38 | ) | (2.54 | ) | 0.27 | ||||||||||||||||
Total from investment operations | 2.96 | 2.40 | 0.67 | (1.35 | ) | (2.50 | ) | 0.31 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.05 | ) | (0.03 | ) | (0.01 | ) | (0.05 | ) | (0.04 | ) | ||||||||||||
Net realized gain | — | — | — | — | (0.04 | ) | (0.11 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.09 | ) | (0.05 | ) | (0.03 | ) | (0.01 | ) | (0.09 | ) | (0.16 | ) | ||||||||||||
Net asset value, end of period | $ | 17.45 | $ | 14.58 | $ | 12.23 | $ | 11.59 | $ | 12.95 | $ | 15.54 | ||||||||||||
Total return | 20.30 | %b | 19.56 | % | 5.89 | % | (10.47 | )% | (16.08 | )% | 1.96 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 63,247 | $ | 41,920 | $ | 33,643 | $ | 31,883 | $ | 32,384 | $ | 44,685 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | 1.01 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.49 | )% | 0.64 | % | 0.43 | % | 0.20 | % | 0.29 | % | 0.23 | % | ||||||||||||
Portfolio turnover rated | 1 | % | 4 | % | 10 | % | 12 | % | 34 | % | 35 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 91 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI United Kingdom Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.72 | $ | 13.00 | $ | 12.77 | $ | 15.11 | $ | 18.35 | $ | 20.25 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.19 | 0.48 | 0.39 | 0.48 | 0.26 | 0.27 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 3.03 | 2.72 | 0.12 | (2.60 | ) | (3.23 | ) | (0.85 | ) | |||||||||||||||
Total from investment operations | 3.22 | 3.20 | 0.51 | (2.12 | ) | (2.97 | ) | (0.58 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.34 | ) | (0.48 | ) | (0.28 | ) | (0.22 | ) | (0.25 | ) | (0.25 | ) | ||||||||||||
Net realized gain | — | — | — | — | (0.02 | ) | (1.03 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | (0.04 | ) | |||||||||||||||||
Total distributions | (0.34 | ) | (0.48 | ) | (0.28 | ) | (0.22 | ) | (0.27 | ) | (1.32 | ) | ||||||||||||
Net asset value, end of period | $ | 18.60 | $ | 15.72 | $ | 13.00 | $ | 12.77 | $ | 15.11 | $ | 18.35 | ||||||||||||
Total return | 20.62 | %b | 24.77 | % | 4.20 | % | (14.19 | )% | (16.20 | )% | (3.00 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 569,029 | $ | 452,870 | $ | 150,809 | $ | 120,067 | $ | 117,883 | $ | 146,803 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.77 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.94 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 2.19 | % | 3.11 | % | 3.23 | % | 3.39 | % | 1.57 | % | 1.39 | % | ||||||||||||
Portfolio turnover rated | 3 | % | 6 | % | 6 | % | 14 | % | 30 | % | 33 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
92 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited)
iSHARES®, INC.
1. SIGNIFICANT ACCOUNTING POLICIES
iShares, Inc. (the “Company”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to amended and restated Articles of Incorporation. As of February 28, 2005, the Company offered 24 investment portfolios or funds.
These financial statements relate only to the iShares MSCI Austria, iShares MSCI Belgium, iShares MSCI EMU, iShares MSCI France, iShares MSCI Germany, iShares MSCI Italy, iShares MSCI Netherlands, iShares MSCI Spain, iShares MSCI Sweden, iShares MSCI Switzerland and iShares MSCI United Kingdom Index Funds (each a “Fund,” collectively the “Funds”).
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded equity securities in the aggregate in a particular market, as measured by a particular equity securities index compiled by Morgan Stanley Capital International Inc. (“MSCI”). The investment adviser utilizes a “passive” or index approach to achieve each Fund’s investment objective. Each of the Funds is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold stocks in fewer companies than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.
Each Fund invests in the securities of foreign issuers of a single country or region, which may involve certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; lesser regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war.
Under the Company’s organizational documents, the Funds’ officers and directors are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
The following significant accounting policies are consistently followed by the Company in the preparation of its financial statements 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 certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Certain prior year amounts in the financial statements have been reclassified to be consistent with the current period presentation. The reclassifications had no impact on prior year net assets, net income or distributions.
NOTESTOTHE FINANCIAL STATEMENTS | 93 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
SECURITY VALUATION
The securities of each Fund are valued primarily on the basis of market prices. Debt securities maturing in 60 days or less and short-term investments are valued at amortized cost.
Securities held under a repurchase agreement are valued at a price equal to the amount of the cash investment at the time of valuation on the valuation date. The market values of the underlying securities are determined in accordance with the above discussed valuation methods, as appropriate, for the purpose of determining the adequacy of collateral.
Securities of investment companies, other than investment companies whose shares are traded on an exchange, are valued at the investment company’s published net asset value per share.
Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing policies approved by the Board of Directors of the Company (the “Board”).
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions.
Foreign currencies, investment securities and assets and liabilities denominated in foreign currencies are converted into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a different rate from the rates used by MSCI may adversely affect a Fund’s ability to track its underlying index.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes.
FOREIGN TAXES
During the six months ended February 28, 2005, the iShares MSCI Sweden Index Fund paid foreign taxes on certain taxable corporate events (i.e., spin-offs and tender offers) by Swedish companies whose securities are held by the Fund. The foreign taxes paid by the Fund are disclosed in its Statement of Operations.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income, if any, including any net foreign currency gains, are declared and distributed at least annually by each Fund. Distributions of net realized gains, if any, generally are declared and distributed once a year. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
94 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of August 31, 2004, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
iShares MSCI Index Fund | Undistributed Ordinary Income | Unrealized Appreciation (Depreciation) | Capital and Other Losses | Net Distributable Earnings (Accumulated Losses) | |||||||||||
Austria | $ | 634,690 | $ | 11,664,201 | $ | (3,409,670 | ) | $ | 8,889,221 | ||||||
Belgium | 613,600 | 331,679 | (2,531,775 | ) | (1,586,496 | ) | |||||||||
EMU | 6,789,991 | (6,245,138 | ) | (9,884,161 | ) | (9,339,308 | ) | ||||||||
France | 724,345 | (1,559,360 | ) | (6,445,487 | ) | (7,280,502 | ) | ||||||||
Germany | 1,573,473 | (35,513,677 | ) | (30,028,327 | ) | (63,968,531 | ) | ||||||||
Italy | 792,629 | 199,034 | (5,056,958 | ) | (4,065,295 | ) | |||||||||
Netherlands | 558,614 | (4,482,874 | ) | (7,391,799 | ) | (11,316,059 | ) | ||||||||
Spain | 759,103 | 8,200,485 | (4,427,739 | ) | 4,531,849 | ||||||||||
Sweden | 420,504 | 3,480,112 | (6,203,866 | ) | (2,303,250 | ) | |||||||||
Switzerland | 269,799 | 2,656,328 | (6,734,346 | ) | (3,808,219 | ) | |||||||||
United Kingdom | 6,976,148 | (8,089,189 | ) | (22,211,909 | ) | (23,324,950 | ) |
For the six months ended February 28, 2005 and for the year ended August 31, 2004, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all Funds.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its net income and any net gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the six months ended February 28, 2005.
NOTESTOTHE FINANCIAL STATEMENTS | 95 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The Funds had tax basis net capital loss carryforwards as of August 31, 2004, the tax year-end of the Funds, as follows:
iShares MSCI Index Fund | Expiring in 2007 | Expiring in 2008 | Expiring in 2009 | Expiring in 2010 | Expiring in 2011 | Expiring in 2012 | Total | ||||||||||||||
Austria | $ | 4,273 | $ | 551,208 | $ | 336,553 | $ | 1,291,324 | $ | 370,948 | $ | 855,364 | $ | 3,409,670 | |||||||
Belgium | — | 94,675 | 450,543 | 1,677,678 | 117,767 | 175,781 | 2,516,444 | ||||||||||||||
EMU | — | — | 443 | 1,923,552 | 1,144,756 | 4,757,907 | 7,826,658 | ||||||||||||||
France | — | — | — | 3,807,513 | 236,944 | 2,401,030 | 6,445,487 | ||||||||||||||
Germany | — | — | 86,860 | 13,573,336 | 5,469,732 | 8,656,712 | 27,786,640 | ||||||||||||||
Italy | — | — | — | 3,335,772 | 848,408 | 541,980 | 4,726,160 | ||||||||||||||
Netherlands | — | — | 60,885 | 3,222,792 | 1,497,810 | 2,481,175 | 7,262,662 | ||||||||||||||
Spain | — | — | 20,276 | 2,081,931 | 678,910 | 1,582,094 | 4,363,211 | ||||||||||||||
Sweden | — | — | 126,557 | 3,350,244 | 1,577,551 | 1,149,514 | 6,203,866 | ||||||||||||||
Switzerland | — | — | — | 2,855,879 | 1,018,305 | 2,149,171 | 6,023,355 | ||||||||||||||
United Kingdom | — | — | — | 9,945,254 | 6,448,554 | 4,272,059 | 20,665,867 |
Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year, or until their respective expiration dates, whichever occurs first.
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies”. The Funds may elect to mark-to-market annually the shares of each passive foreign investment company, and would be required to distribute to shareholders any such mark-to-market gains.
As of February 28, 2005, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
iShares MSCI Index Fund | Tax Cost | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||
Austria | $ | 171,640,771 | $ | 39,584,245 | $ | (36,357 | ) | $ | 39,547,888 | |||||
Belgium | 72,662,001 | 10,168,282 | (577 | ) | 10,167,705 | |||||||||
EMU | 602,181,939 | 87,423,476 | (5,448,519 | ) | 81,974,957 | |||||||||
France | 69,305,890 | 13,300,045 | (8,277,380 | ) | 5,022,665 | |||||||||
Germany | 221,082,236 | 15,382,328 | (24,364,719 | ) | (8,982,391 | ) | ||||||||
Italy | 46,404,628 | 10,237,897 | (1,542,704 | ) | 8,695,193 | |||||||||
Netherlands | 57,726,760 | 5,233,970 | (1,324,920 | ) | 3,909,050 | |||||||||
Spain | 66,516,303 | 15,038,618 | (23,294 | ) | 15,015,324 | |||||||||
Sweden | 71,514,287 | 12,924,010 | (748 | ) | 12,923,262 | |||||||||
Switzerland | 60,386,834 | 11,995,900 | (1,143,260 | ) | 10,852,640 | |||||||||
United Kingdom | 506,304,679 | 72,760,690 | (11,062,257 | ) | 61,698,433 |
96 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
REPURCHASE AGREEMENTS
Each Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as an investment by the Fund, collateralized by securities, which are delivered to the Fund’s custodian or to an agent bank under a tri-party agreement. The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. As of February 28, 2005, a portion of the cash collateral for securities on loan for the Funds was invested in repurchase agreements as disclosed in each Fund’s Schedule of Investments. For further information, see Note 5, below.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Agreement with the Company, as amended, Barclays Global Fund Advisors (“BGFA”) manages the investment of each Fund’s assets. BGFA is a California corporation indirectly owned by Barclays Bank PLC. Under the Investment Advisory Agreement, BGFA is responsible for all of the expenses (“Covered Expenses”) of each of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees and extraordinary expenses.
For its investment advisory services to each Fund, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate net assets of all the funds offered by the Company (except for the iShares MSCI Brazil, iShares MSCI Emerging Markets, iShares MSCI Pacific ex-Japan, iShares MSCI South Africa, iShares MSCI South Korea, and iShares MSCI Taiwan Index Funds) as follows:
Investment Advisory Fee | Aggregate Net Assets | |
0.59% | First $7 billion | |
0.54 | Over $7 billion, up to and including $11 billion | |
0.49 | Over $11 billion |
Barclays Global Investors, N.A. (“BGI”) has a license agreement with MSCI for the use of the relevant MSCI indices. Under a sub-license agreement between BGI and the Funds, the fees for the use of such MSCI indices are paid directly by BGI to MSCI.
Investors Bank & Trust Company (“Investors Bank”) serves as administrator, custodian and transfer agent for the Company. As compensation for its services, Investors Bank receives certain out-of-pocket costs, transaction fees, and asset-based fees, which are accrued daily and paid monthly. These fees are Covered Expenses as defined above.
NOTESTOTHE FINANCIAL STATEMENTS | 97 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
BGI serves as securities lending agent for the Company. BGI is an affiliate of BGFA, the Funds’ investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 28, 2005, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Austria | $ | 11,304 | |
Belgium | 13,027 | ||
EMU | 147,208 | ||
France | 27,390 | ||
Germany | 47,900 | ||
Italy | 17,080 | ||
Netherlands | 7,580 | ||
Spain | 22,864 | ||
Sweden | 10,998 | ||
Switzerland | 1,792 | ||
United Kingdom | 8,222 |
SEI Investments Distribution Co. (the “Distributor”) serves as each Fund’s underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the Company. The Distributor does not receive a fee from the Funds for its distribution services.
As defined under Section 2(a)(3) of the 1940 Act, certain broker-dealers may be deemed to be an “affiliated person” of a Fund by virtue of being a DTC Participant that owned of record 5% or more of the outstanding shares of such Fund. The broker-dealers identified to be an “affiliated person” of a Fund (other than BGIS) did not execute any portfolio transactions with or on behalf of such Fund during the six months ended February 28, 2005.
Pursuant to Rule 17a-7 under the 1940 Act, certain Funds executed cross trades for the six months ended February 28, 2005. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. The Board reviewed all such transactions executed during the first four months of the fiscal half-year and concluded that they were in compliance with the requirements and restrictions set forth in Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the last two months of the fiscal half-year.
Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission, each Fund may invest in the Institutional Shares of the Government Money Market Fund (“GMMF”), Institutional Money Market Fund (“IMMF”) and Prime Money Market Fund (“PMMF”) of Barclays Global Investors Funds. The GMMF, IMMF and PMMF are feeder funds in a master/feeder fund structure that invest substantially all of their assets in the Government Money Market Master Portfolio, Money Market Master Portfolio and Prime Money Market Master Portfolio (collectively, the “Master Portfolios”), respectively, which are managed by BGFA, the Funds’ investment adviser. The GMMF, IMMF and PMMF are open-end money market funds available to institutional and accredited investors, including other investment companies managed by BGFA. The GMMF, IMMF and PMMF seek a high level of income consistent with liquidity and the preservation of capital. While the GMMF, IMMF and PMMF do not directly charge an investment advisory fee, the Master Portfolios in which they invest do charge an investment advisory fee. Income distributions from the GMMF, IMMF and PMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments or from investment of securities lending collateral are recorded as either interest from affiliated issuers or securities lending income, respectively, in the accompanying Statements of Operations.
98 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The following table provides information about the investment by each Fund in shares of issuers of which BGFA is an affiliate, for the six months ended February 28, 2005, including income earned from these affiliated issuers and net realized gain from sales of these affiliated issuers.
iShares MSCI Index Fund and | Number of Shares Held Beginning of Period (in 000s) | Gross Additions (in 000s) | Gross Reductions (in 000s) | Number of Shares Held End of Period (in 000s) | Value at End of Period | Dividend and Interest Income | Net Realized | ||||||||||
Austria | |||||||||||||||||
IMMF | 29 | 4,979 | 4,916 | 92 | $ | 91,823 | $ | 799 | $ | — | |||||||
Belgium | |||||||||||||||||
IMMF | 12 | 1,306 | 1,291 | 27 | 26,796 | 318 | — | ||||||||||
EMU | |||||||||||||||||
IMMF | 193 | 10,255 | 10,168 | 280 | 280,157 | 1,595 | — | ||||||||||
France | |||||||||||||||||
IMMF | 52 | 1,377 | 1,425 | 4 | 3,630 | 326 | — | ||||||||||
Germany | |||||||||||||||||
IMMF | 69 | 3,021 | 3,015 | 75 | 75,106 | 546 | — | ||||||||||
Italy | |||||||||||||||||
IMMF | 15 | 1,291 | 1,280 | 26 | 25,620 | 183 | — | ||||||||||
Netherlands | |||||||||||||||||
IMMF | 15 | 947 | 942 | 20 | 20,311 | 205 | — | ||||||||||
Spain | |||||||||||||||||
IMMF | 24 | 2,108 | 2,092 | 40 | 40,347 | 365 | — | ||||||||||
Sweden | |||||||||||||||||
IMMF | 15 | 866 | 877 | 4 | 3,835 | 139 | — | ||||||||||
Switzerland | |||||||||||||||||
IMMF | 22 | 839 | 833 | 28 | 27,875 | 156 | — | ||||||||||
United Kingdom | |||||||||||||||||
Barclays PLC | 1,510 | 302 | 249 | 1,563 | 17,004,618 | 523,062 | 1,677,583 | ||||||||||
IMMF | 283 | 15,597 | 15,874 | 6 | 6,275 | 2,228 | — |
During the six months ended February 28, 2005, the Funds invested cash collateral from securities on loan in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account used for the investment of the collateral for securities on loan, the information reported above for each Fund does not include the Fund’s holdings of the GMMF, IMMF and PMMF in connection with the investment of collateral for securities on loan.
As of February 28, 2005, certain directors and officers of the Company are also officers of BGI.
NOTESTOTHE FINANCIAL STATEMENTS | 99 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2005, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Austria | $ | 5,676,141 | $ | 6,936,749 | ||
Belgium | 1,909,690 | 1,910,018 | ||||
EMU | 18,717,122 | 22,135,816 | ||||
France | 2,945,358 | 2,311,885 | ||||
Germany | 2,912,550 | 4,399,694 | ||||
Italy | 2,576,060 | 3,394,173 | ||||
Netherlands | 540,136 | 839,192 | ||||
Spain | 2,742,410 | 3,215,791 | ||||
Sweden | 1,354,108 | 1,912,578 | ||||
Switzerland | 648,736 | 1,032,750 | ||||
United Kingdom | 17,545,186 | 21,804,060 |
In-kind transactions (see Note 4) for the six months ended February 28, 2005, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Austria | $ | 115,433,487 | $ | 22,025,187 | ||
Belgium | 23,712,753 | 2,327,730 | ||||
EMU | 100,913,717 | 6,200,380 | ||||
France | — | 18,394,404 | ||||
Germany | 32,561,649 | — | ||||
Italy | 3,824,175 | — | ||||
Netherlands | 15,326,043 | — | ||||
Spain | 23,444,179 | 15,068,052 | ||||
Sweden | 26,757,602 | — | ||||
Switzerland | 13,709,088 | 1,879,776 | ||||
United Kingdom | 96,396,302 | 66,182,194 |
100 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
4. CAPITAL SHARE TRANSACTIONS
The Company has authorized 10.9 billion shares of $.001 par value capital stock. The number of shares authorized to each Fund are as follows:
iShares MSCI Index Fund | Authorized Shares | iShares MSCI Index Fund | Authorized Shares | |||
Austria | 19,800,000 | Netherlands | 255,000,000 | |||
Belgium | 136,200,000 | Spain | 127,800,000 | |||
EMU | 500,000,000 | Sweden | 63,600,000 | |||
France | 340,200,000 | Switzerland | 318,625,000 | |||
Germany | 382,200,000 | United Kingdom | 943,200,000 | |||
Italy | 63,600,000 |
The Company issues and redeems capital shares of each Fund only in aggregations of a specified number of shares (each, a “Creation Unit”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.
The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of equity securities constituting a portfolio sampling representation of the corresponding MSCI Index and an amount of cash. A purchase transaction fee and a redemption transaction fee are charged to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 105% of the market value of the loaned securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Funds of securities lending are that the borrower may not provide additional collateral when required, or may not return the securities when due.
As of February 28, 2005, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan as of February 28, 2005 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, which is disclosed in the Funds’ Statements of Operations, is presented net of rebates paid to, or fees paid by, borrowers.
NOTESTOTHE FINANCIAL STATEMENTS | 101 |
Table of Contents
The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call iShares at 1-800-iShares (1-800-474-2737) to obtain a prospectus for any iShares Fund. The prospectus contains more complete information, including charges, expenses, investment objectives and risk factors that should be carefully considered to determine if the Fund(s) are an appropriate investment for you. Read the prospectus(es) carefully before investing. Investing involves risk, including possible loss of principal.
iShares S&P Domestic Index Funds |
iShares S&P 1500 (ISI) |
iShares S&P 500 (IVV) |
iShares S&P 500/BARRA Growth (IVW) |
iShares S&P 500/BARRA Value (IVE) |
iShares S&P MidCap 400 (IJH) |
iShares S&P MidCap 400/BARRA Growth (IJK) |
iShares S&P MidCap 400/BARRA Value (IJJ) |
iShares S&P SmallCap 600 (IJR) |
iShares S&P SmallCap 600/BARRA Growth (IJT) |
iShares S&P SmallCap 600/BARRA Value (IJS) |
iShares S&P 100 (OEF) |
iShares Sector and Specialty Index Funds |
iShares Cohen & Steers Realty Majors (ICF) |
iShares Dow Jones Select Dividend (DVY) |
iShares Dow Jones Transportation Average (IYT) |
iShares Dow Jones U.S. Basic Materials Sector (IYM) |
iShares Dow Jones U.S. Consumer Cyclical Sector (IYC) |
iShares Dow Jones U.S. Consumer Non-Cyclical Sector (IYK) |
iShares Dow Jones U.S. Energy Sector (IYE) |
iShares Dow Jones U.S. Financial Sector (IYF) |
iShares Dow Jones U.S. Financial Services (IYG) |
iShares Dow Jones U.S. Healthcare Sector (IYH) |
iShares Dow Jones U.S. Industrial Sector (IYJ) |
iShares Dow Jones U.S. Real Estate (IYR) |
iShares Dow Jones U.S. Technology Sector (IYW) |
iShares Dow Jones U.S. Telecommunications Sector (IYZ) |
iShares Dow Jones U.S. Total Market (IYY) |
iShares Dow Jones U.S. Utilities Sector (IDU) |
iShares Goldman Sachs Natural Resources (IGE) |
iShares Goldman Sachs Networking (IGN) |
iShares Goldman Sachs Semiconductor (IGW) |
iShares Goldman Sachs Software (IGV) |
iShares Goldman Sachs Technology (IGM) |
iShares KLD Select SocialSM (KLD) |
iShares Nasdaq Biotechnology (IBB) |
iShares S&P Global Energy Sector (IXC) |
iShares S&P Global Financials Sector (IXG) |
iShares S&P Global Healthcare Sector (IXJ) |
iShares S&P Global Technology Sector (IXN) |
iShares S&P Global Telecommunications Sector (IXP) |
iShares Russell Index Funds |
iShares Russell 3000 (IWV) |
iShares Russell 3000 Growth (IWZ) |
iShares Russell 3000 Value (IWW) |
iShares Russell 1000 (IWB) |
iShares Russell 1000 Growth (IWF) |
iShares Russell 1000 Value (IWD) |
iShares Russell Midcap (IWR) |
iShares Russell Midcap Growth (IWP) |
iShares Russell Midcap Value (IWS) |
iShares Russell 2000 (IWM) |
iShares Russell 2000 Growth (IWO) |
iShares Russell 2000 Value (IWN) |
iShares International Index Funds |
iShares FTSE/Xinhua China 25 (FXI) |
iShares MSCI Australia (EWA) |
iShares MSCI Austria (EWO) |
iShares MSCI Belgium (EWK) |
iShares MSCI Brazil (EWZ) |
iShares MSCI Canada (EWC) |
iShares MSCI EAFE (EFA) |
iShares MSCI Emerging Markets (EEM) |
iShares MSCI EMU (EZU) |
iShares MSCI France (EWQ) |
iShares MSCI Germany (EWG) |
iShares MSCI Hong Kong (EWH) |
iShares MSCI Italy (EWI) |
iShares MSCI Japan (EWJ) |
iShares MSCI Malaysia (EWM) |
iShares MSCI Mexico (EWW) |
iShares MSCI Netherlands (EWN) |
iShares MSCI Pacific ex-Japan (EPP) |
iShares MSCI Singapore (EWS) |
iShares MSCI South Africa (EZA) |
iShares MSCI South Korea (EWY) |
iShares MSCI Spain (EWP) |
iShares MSCI Sweden (EWD) |
iShares MSCI Switzerland (EWL) |
iShares MSCI Taiwan (EWT) |
iShares MSCI United Kingdom (EWU) |
iShares S&P Europe 350 (IEV) |
iShares S&P Global 100 (IOO) |
iShares S&P Latin America 40 (ILF) |
iShares S&P/TOPIX 150 (ITF) |
iShares Bond Funds |
iShares GS $ InvesTop™ Corporate (LQD) |
iShares Lehman Aggregate (AGG) |
iShares Lehman TIPS (TIP) |
iShares Lehman 1-3 Year Treasury (SHY) |
iShares Lehman 7-10 Year Treasury (IEF) |
iShares Lehman 20+ Year Treasury (TLT) |
iShares NYSE Index Funds |
iShares NYSE 100 (NY) |
iShares NYSE Composite (NYC) |
iShares Morningstar Index Funds |
iShares Morningstar Large Core (JKD) |
iShares Morningstar Large Growth (JKE) |
iShares Morningstar Large Value (JKF) |
iShares Morningstar Mid Core (JKG) |
iShares Morningstar Mid Growth (JKH) |
iShares Morningstar Mid Value (JKI) |
iShares Morningstar Small Core (JKJ) |
iShares Morningstar Small Growth (JKK) |
iShares Morningstar Small Value (JKL) |
iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by Goldman, Sachs & Co. or Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., FTSE/Xinhua Index Limited, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The Nasdaq Stock Market, Inc., New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. “GS $ InvesTop™” and “Goldman Sachs®” are trademarks of Goldman, Sachs & Co.
An investment in the Fund(s) is not a deposit of a bank and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
This advertising section does not constitute part of the 2005 Semi-Annual Report.
1667-iS-0305
102 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an adviser to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., a wholly owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morgan Stanley Capital International, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds.
©2005 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Investing involves risk, including possible loss of principal.
A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, 2004 is available without charge, upon request, by calling toll-free 1 800 474 2737; on the Funds’ website at www.iShares.com; and on the Securities and Exchange Commission’s website at www.sec.gov.
The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q, which when filed, will be available on the Commission’s website at www.sec.gov. When filed, the Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1 800 SEC 0330. The Funds also disclose their complete schedules of portfolio holdings on a daily and monthly basis on the Funds’ website at www.iShares.com.
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
BGI-F-036-02005
BARCLAYS GLOBAL INVESTORS | ![]() |
Table of Contents
Table of Contents
Dear iShares Shareholder:
Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.
To sign up for electronic delivery, please follow these simple steps:
1. | Go to www.icsdelivery.com. |
2. | From the main page, select the first letter of your brokerage firm’s name. |
3. | Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser. |
4. | Fill out the appropriate information and provide the e-mail address where you would like your information sent. |
Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.
Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.
Table of Contents
1 | ||
13 | ||
15 | ||
15 | ||
21 | ||
26 | ||
29 | ||
38 | ||
43 | ||
45 | ||
50 | ||
56 | ||
61 | ||
63 | ||
66 | ||
69 | ||
77 | ||
89 | ||
98 |
Table of Contents
iSHARES® MSCI AUSTRALIA INDEX FUND
Performance as of 2/28/05
The iShares MSCI Australia Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Australian market, as measured by the MSCI Australia Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 35.69%, while the Index returned 35.40%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
33.14% | 31.85% | 32.43% | 15.25% | 15.01% | 14.93% | 9.80% | 9.77% | 10.04% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
33.14% | 31.85% | 32.43% | 103.34% | 101.26% | 100.53% | 131.24% | 130.82% | 135.85% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION | |||
Sector | % of Net Assets | ||
Financial | 48.83 | % | |
Basic Materials | 18.97 | ||
Consumer Non-Cyclical | 9.47 | ||
Industrial | 8.56 | ||
Consumer Cyclical | 4.58 | ||
Communications | 3.39 | ||
Energy | 3.26 | ||
Utilities | 1.05 | ||
Diversified | 0.56 | ||
Technology | 0.37 | ||
Short-Term and Other Net Assets | 0.96 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS | |||
Security | % of Net Assets | ||
BHP Billiton Ltd. | 11.12 | % | |
Commonwealth Bank of Australia | 7.48 | ||
National Australia Bank Ltd. | 7.24 | ||
Australia & New Zealand Banking Group Ltd. | 6.31 | ||
Westpac Banking Corp. Ltd. | 5.53 | ||
Westfield Group | 3.91 | ||
Woolworths Ltd. | 2.63 | ||
Rio Tinto Ltd. | 2.39 | ||
Wesfarmers Ltd. | 2.39 | ||
AMP Ltd. | 2.21 | ||
TOTAL | 51.21 | % | |
FUND PERFORMANCE OVERVIEW | 1 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI BRAZIL INDEX FUND
Performance as of 2/28/05
The iShares MSCI Brazil Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Brazilian market, as measured by the MSCI Brazil Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 51.59%, while the Index returned 54.52%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/05 | Inception to 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
53.77% | 52.83% | 56.53% | 7.70% | 7.59% | 10.35% | 41.08% | 40.42% | 57.90% |
Total returns for the periods since inception are calculated from the inception date of the Fund (7/10/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month and one-year periods. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (7/14/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION | |||
Sector | % of Net Assets | ||
Basic Materials | 34.58 | % | |
Energy | 24.29 | ||
Financial | 13.63 | ||
Communications | 10.23 | ||
Consumer Non-Cyclical | 7.66 | ||
Utilities | 5.84 | ||
Industrial | 2.98 | ||
Consumer Cyclical | 0.35 | ||
Short-Term and Other Net Assets | 0.44 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS | |||
Security | % of Net Assets | ||
Petroleo Brasileiro SA Preferred | 12.98 | % | |
Petroleo Brasileiro SA | 11.31 | ||
Companhia Vale do Rio Doce Class A Preferred | 10.08 | ||
Companhia Vale do Rio Doce ADR | 8.72 | ||
Banco Itau Holding Financeira SA Preferred | 5.53 | ||
Companhia de Bebidas das Americas Preferred | 4.73 | ||
Banco Bradesco SA Preferred | 4.68 | ||
Tele Norte Leste Participacoes SA Preferred | 3.43 | ||
Unibanco Uniao de Bancos Brasileiros SA | 3.22 | ||
Companhia Siderurgica Nacional SA | 3.13 | ||
TOTAL | 67.81 | % | |
2 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI CANADA INDEX FUND
Performance as of 2/28/05
The iShares MSCI Canada Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Canadian market, as measured by the MSCI Canada Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 23.86%, while the Index returned 23.81%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
21.49% | 21.18% | 20.95% | 7.38% | 6.83% | 6.15% | 11.73% | 11.75% | 12.36% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
21.49% | 21.18% | 20.95% | 42.74% | 39.15% | 34.74% | 170.39% | 170.87% | 184.47% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 35.49 | % | |
Energy | 23.94 | ||
Basic Materials | 16.88 | ||
Communications | 6.97 | ||
Industrial | 6.09 | ||
Consumer Cyclical | 3.39 | ||
Consumer Non-Cyclical | 3.15 | ||
Diversified | 1.89 | ||
Technology | 1.79 | ||
Utilities | 0.19 | ||
Short-Term and Other Net Assets | 0.22 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Royal Bank of Canada | 6.43 | % | |
Manulife Financial Corp. | 5.95 | ||
Bank of Nova Scotia | 5.44 | ||
EnCana Corp. | 5.03 | ||
Bank of Montreal | 3.80 | ||
Canadian Imperial Bank of Commerce | 3.33 | ||
Sun Life Financial Inc. | 3.22 | ||
Canadian National Railway Co. | 3.04 | ||
Suncor Energy Inc. | 2.92 | ||
Alcan Inc. | 2.48 | ||
TOTAL | 41.64 | % | |
FUND PERFORMANCE OVERVIEW | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI EMERGING MARKETS INDEX FUND
Performance as of 2/28/05
The iShares MSCI Emerging Markets Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 37.68%, while the Index returned 35.17%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/05 | Inception to 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
28.89% | 27.79% | 26.44% | 51.92% | 51.95% | 49.50% | 121.22% | 121.30% | 114.68% |
Total returns for the periods since inception are calculated from the inception date of the Fund (4/7/03). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/11/03), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION | |||
Sector | % of Net Assets | ||
Financial | 19.38 | % | |
Communications | 15.96 | ||
Energy | 12.75 | ||
Basic Materials | 12.65 | ||
Industrial | 11.77 | ||
Technology | 8.96 | ||
Consumer Non-Cyclical | 5.90 | ||
Consumer Cyclical | 4.79 | ||
Utilities | 4.35 | ||
Diversified | 2.45 | ||
Exchange-Traded Funds | 0.85 | ||
Short-Term and Other Net Assets | 0.19 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS | |||
Security | % of Net Assets | ||
Samsung Electronics Co. Ltd. GDR (South Korea) | 6.86 | % | |
POSCO ADR (South Korea) | 3.17 | ||
Kookmin Bank ADR (South Korea) | 2.85 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan) | 2.62 | ||
AU Optronics Corp. ADR (Taiwan) | 2.04 | ||
Korea Electric Power Corp. ADR (South Korea) | 1.99 | ||
LUKOIL ADR (Russia) | 1.84 | ||
America Movil SA de CV Series L (Mexico) | 1.78 | ||
Siliconware Precision Industries Co. ADR (Taiwan) | 1.73 | ||
Chunghwa Telecom Co. Ltd. ADR (Taiwan) | 1.67 | ||
TOTAL | 26.55 | % | |
4 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI HONG KONG INDEX FUND
Performance as of 2/28/05
The iShares MSCI Hong Kong Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Hong Kong market, as measured by the MSCI Hong Kong Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 11.93%, while the Index returned 12.11%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
8.74% | 8.07% | 9.27% | (0.23)% | (0.22)% | (0.29)% | 2.03% | 2.01% | 4.05% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
8.74% | 8.07% | 9.27% | (1.16)% | (1.07)% | (1.45)% | 19.76% | 19.52% | 42.71% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 41.22 | % | |
Diversified | 20.69 | ||
Utilities | 16.02 | ||
Consumer Cyclical | 9.95 | ||
Industrial | 7.08 | ||
Communications | 3.64 | ||
Basic Materials | 0.84 | ||
Technology | 0.49 | ||
Short-Term and Other Net Assets | 0.07 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Hutchison Whampoa Ltd. | 13.12 | % | |
Cheung Kong Holdings Ltd. | 9.60 | ||
Sun Hung Kai Properties Ltd. | 8.33 | ||
CLP Holdings Ltd. | 6.74 | ||
Hang Seng Bank Ltd. | 6.70 | ||
Hong Kong & China Gas Co. Ltd. | 4.98 | ||
Swire Pacific Ltd. Class A | 4.90 | ||
BOC Hong Kong Holdings Ltd. | 4.68 | ||
Esprit Holdings Ltd. | 4.39 | ||
Hongkong Electric Holdings Ltd. | 4.33 | ||
TOTAL | 67.77 | % | |
FUND PERFORMANCE OVERVIEW | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MALAYSIA INDEX FUND
Performance as of 2/28/05
The iShares MSCI Malaysia Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Malaysian market, as measured by the MSCI Malaysia Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 11.14%, while the Index returned 11.48%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
2.51% | 2.49% | 3.18% | 0.66% | 1.50% | 1.61% | (4.67)% | (4.60)% | (3.49)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
2.51% | 2.49% | 3.18% | 3.36% | 7.71% | 8.30% | (34.85)% | (34.47)% | (27.32)% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. In the case of the Malaysia Fund, which has a NAV determined prior to the opening of the regular trading day on the American Stock Exchange (the “Amex”), the market return will use the midpoint of the bid/ask spread as of the opening of regular trading on the Amex. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION | |||
Sector | % of Net Assets | ||
Financial | 29.96 | % | |
Consumer Cyclical | 15.74 | ||
Industrial | 13.82 | ||
Consumer Non-Cyclical | 12.59 | ||
Communications | 11.92 | ||
Utilities | 8.93 | ||
Diversified | 4.80 | ||
Technology | 1.05 | ||
Energy | 0.58 | ||
Basic Materials | 0.49 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS | |||
Security | % of Net Assets | ||
Malayan Banking Bhd | 11.84 | % | |
Telekom Malaysia Bhd | 5.48 | ||
Tenaga Nasional Bhd | 4.88 | ||
Public Bank Bhd | 4.80 | ||
Malaysia International Shipping Corp. Bhd | 4.34 | ||
Sime Darby Bhd | 4.18 | ||
Genting Bhd | 4.06 | ||
Commerce Asset Holdings Bhd | 4.05 | ||
Maxis Communications Bhd | 3.58 | ||
IOI Corp. Bhd | 3.21 | ||
TOTAL | 50.42 | % | |
6 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MEXICO INDEX FUND
Performance as of 2/28/05
The iShares MSCI Mexico Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Mexican market, as measured by the MSCI Mexico Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 39.75%, while the Index returned 40.06%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
37.96% | 38.22% | 39.81% | 10.57% | 10.81% | 11.11% | 14.02% | 14.08% | 15.89% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
37.96% | 38.22% | 39.81% | 65.27% | 67.08% | 69.32% | 224.46% | 225.94% | 275.51% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month and one-year periods. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION | |||
Sector | % of Net Assets | ||
Communications | 47.52 | % | |
Industrial | 13.10 | ||
Consumer Non-Cyclical | 11.14 | ||
Consumer Cyclical | 11.07 | ||
Basic Materials | 6.72 | ||
Diversified | 5.65 | ||
Financial | 4.78 | ||
Short-Term and Other Net Assets | 0.02 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS | |||
Security | % of Net Assets | ||
America Movil SA de CV Series L | 22.77 | % | |
Telefonos de Mexico SA de CV Series L | 14.26 | ||
Cemex SA de CV Series CPO | 11.84 | ||
Fomento Economico Mexicano SA de CV Class UBD | 4.93 | ||
Grupo Televisa SA Series CPO | 4.82 | ||
Wal-Mart de Mexico SA de CV Series V | 4.75 | ||
Kimberly-Clark de Mexico SA de CV Class A | 3.28 | ||
Grupo Financiero Banorte SA de CV Series O | 3.24 | ||
Grupo Carso SA de CV Series A1 | 3.18 | ||
Grupo Modelo SA de CV Series C | 2.84 | ||
TOTAL | 75.91 | % | |
FUND PERFORMANCE OVERVIEW | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
Performance as of 2/28/05
The iShares MSCI Pacific ex-Japan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Australia, Hong Kong, New Zealand and Singapore markets, as measured by the MSCI Pacific Free ex-Japan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 27.81%, while the Index returned 27.72%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/05 | Inception to 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
26.02% | 24.62% | 25.68% | 23.38% | 23.35% | 23.31% | 102.07% | 101.89% | 101.74% |
Total returns for the periods since inception are calculated from the inception date of the Fund (10/25/01). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until the day after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (10/26/01), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 46.09 | % | |
Basic Materials | 12.92 | ||
Industrial | 8.94 | ||
Consumer Non-Cyclical | 6.74 | ||
Communications | 6.36 | ||
Consumer Cyclical | 6.19 | ||
Diversified | 5.08 | ||
Utilities | 4.25 | ||
Energy | 2.16 | ||
Technology | 0.59 | ||
Short-Term and Other Net Assets | 0.68 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
BHP Billiton Ltd. (Australia) | 7.37 | % | |
Commonwealth Bank of Australia (Australia) | 4.95 | ||
National Australia Bank Ltd. (Australia) | 4.80 | ||
Australia & New Zealand Banking Group Ltd. (Australia) | 4.20 | ||
Westpac Banking Corp. Ltd. (Australia) | 3.67 | ||
Hutchison Whampoa Ltd. (Hong Kong) | 2.61 | ||
Westfield Group (Australia) | 2.60 | ||
Cheung Kong Holdings Ltd. (Hong Kong) | 1.94 | ||
Woolworths Ltd. (Australia) | 1.75 | ||
Sun Hung Kai Properties Ltd. (Hong Kong) | 1.69 | ||
TOTAL | 35.58 | % | |
8 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SINGAPORE INDEX FUND
Performance as of 2/28/05
The iShares MSCI Singapore Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Singaporean market, as measured by the MSCI Singapore Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 16.55%, while the Index returned 15.35%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
18.93% | 17.87% | 18.02% | 2.37% | 2.84% | 1.46% | (3.67)% | (3.63)% | (3.20)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
18.93% | 17.87% | 18.02% | 12.45% | 15.05% | 7.52% | (28.46)% | (28.20)% | (25.30)% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Financial | 49.80 | % | |
Communications | 18.53 | ||
Industrial | 14.10 | ||
Consumer Cyclical | 6.15 | ||
Diversified | 5.21 | ||
Consumer Non-Cyclical | 3.51 | ||
Technology | 2.66 | ||
Short-Term and Other Net Assets | 0.04 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
DBS Group Holdings Ltd. | 13.98 | % | |
United Overseas Bank Ltd. | 11.92 | ||
Singapore Telecommunications Ltd. | 11.70 | ||
Oversea-Chinese Banking Corp. | 10.73 | ||
Singapore Press Holdings Ltd. | 4.65 | ||
Singapore Airlines Ltd. | 3.98 | ||
Keppel Corp. Ltd. | 3.82 | ||
City Developments Ltd. | 3.42 | ||
Venture Corp. Ltd. | 3.05 | ||
Singapore Technologies Engineering Ltd. | 3.01 | ||
TOTAL | 70.26 | % | |
FUND PERFORMANCE OVERVIEW | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH AFRICA INDEX FUND
Performance as of 2/28/05
The iShares MSCI South Africa Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the South African market, as measured by the MSCI South Africa Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 36.86%, while the Index returned 37.69%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/05 | Inception to 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
40.56% | 39.27% | 41.11% | 45.43% | 45.28% | 47.27% | 117.22% | 116.76% | 122.84% |
Total returns for the periods since inception are calculated from the inception date of the Fund (2/3/03). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month and one-year periods. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (2/7/03), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION | |||
Sector | % of Net Assets | ||
Financial | 32.36 | % | |
Basic Materials | 17.60 | ||
Communications | 14.14 | ||
Energy | 10.15 | ||
Consumer Cyclical | 9.05 | ||
Diversified | 8.56 | ||
Consumer Non-Cyclical | 4.51 | ||
Industrial | 3.58 | ||
Short-Term and Other Net Assets | 0.05 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS | |||
Security | % of Net Assets | ||
Sasol Ltd. | 10.15 | % | |
Standard Bank Group Ltd. | 9.62 | ||
MTN Group Ltd. | 7.83 | ||
Old Mutual PLC | 7.47 | ||
FirstRand Ltd. | 5.11 | ||
Sanlam Ltd. | 4.32 | ||
Impala Platinum Holdings Ltd. | 3.92 | ||
Telkom South Africa Ltd. | 3.44 | ||
AngloGold Ashanti Ltd. | 3.34 | ||
Gold Fields Ltd. | 2.89 | ||
TOTAL | 58.09 | % | |
10 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH KOREA INDEX FUND
Performance as of 2/28/05
The iShares MSCI South Korea Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the South Korean market, as measured by the MSCI South Korea Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 41.92%, while the Index returned 41.92%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/05 | Inception to 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
25.32% | 25.04% | 26.27% | 11.85% | 12.07% | 12.29% | 71.41% | 72.98% | 74.63% |
Total returns for the periods since inception are calculated from the inception date of the Fund (5/9/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. In the case of the South Korea Fund, the NAV of which is determined prior to the opening of the regular trading day on the American Stock Exchange (the “AMEX”), the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the AMEX. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (5/12/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION | |||
Sector | % of Net Assets | ||
Industrial | 40.09 | % | |
Financial | 15.58 | ||
Consumer Cyclical | 13.24 | ||
Basic Materials | 10.26 | ||
Communications | 7.26 | ||
Consumer Non-Cyclical | 4.48 | ||
Energy | 4.46 | ||
Utilities | 2.96 | ||
Short-Term and Other Net Assets | 1.67 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS | |||
Security | % of Net Assets | ||
Samsung Electronics Co. Ltd. | 23.29 | % | |
POSCO | 7.47 | ||
Kookmin Bank | 6.29 | ||
Hyundai Motor Co. Ltd. | 4.21 | ||
LG Electronics Inc. | 4.04 | ||
Shinhan Financial Group Ltd. | 3.22 | ||
Samsung SDI Co. Ltd. | 3.02 | ||
Korea Electric Power Corp. | 2.96 | ||
SK Telecom Co. Ltd. | 2.91 | ||
SK Corp. | 2.76 | ||
TOTAL | 60.17 | % | |
FUND PERFORMANCE OVERVIEW | 11 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI TAIWAN INDEX FUND
Performance as of 2/28/05
The iShares MSCI Taiwan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Taiwanese market, as measured by the MSCI Taiwan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 16.27%, while the Index returned 16.50%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/05 | Inception to 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(1.31)% | 0.20% | (0.98)% | (8.31)% | (7.81)% | (7.46)% | (33.48)% | (31.74)% | (30.54)% |
Total returns for the periods since inception are calculated from the inception date of the Fund (6/20/00). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. In the case of the Taiwan Fund, the NAV of which is determined prior to the opening of the regular trading day on the American Stock Exchange (the “AMEX”), the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the AMEX. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/23/00), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/05 | |||
Sector | % of Net Assets | ||
Technology | 32.92 | % | |
Financial | 22.84 | ||
Industrial | 21.41 | ||
Basic Materials | 13.42 | ||
Consumer Cyclical | 4.89 | ||
Communications | 3.44 | ||
Consumer Non-Cyclical | 0.90 | ||
Short-Term and Other Net Assets | 0.18 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/05 | |||
Security | % of Net Assets | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 14.09 | % | |
Hon Hai Precision Industry Co. Ltd. | 5.29 | ||
United Microelectronics Corp. | 4.78 | ||
Cathay Financial Holding Co. Ltd. | 4.28 | ||
China Steel Corp. | 4.06 | ||
Nan Ya Plastic Corp. | 3.47 | ||
Formosa Plastic Co. | 3.28 | ||
Mega Financial Holding Co. Ltd. | 2.85 | ||
AU Optronics Corp. | 2.79 | ||
Asustek Computer Inc. | 2.79 | ||
TOTAL | 47.68 | % | |
12 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
As a shareholder of an iShares Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and (2) ongoing costs, including management fees and other fund expenses. The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2004 to February 28, 2005.
Actual Expenses
The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line under each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under each Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
iShares MSCI Index Fund | Beginning Account Value (September 1, 2004) | Ending Account Value (February 28, 2005) | Annualized Expense Ratio | Expenses Paid During Period* (September 1, 2004 to February 28, 2005) | ||||||||
Australia | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,356.90 | 0.58 | % | $ | 3.39 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Brazil | ||||||||||||
Actual | 1,000.00 | 1,515.90 | 0.74 | 4.62 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.12 | 0.74 | 3.71 | ||||||||
Canada | ||||||||||||
Actual | 1,000.00 | 1,238.60 | 0.58 | 3.22 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Emerging Markets | ||||||||||||
Actual | 1,000.00 | 1,376.80 | 0.77 | 4.54 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,020.98 | 0.77 | 3.86 |
SHAREHOLDER EXPENSES | 13 |
Table of Contents
Shareholder Expenses (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (September 1, 2004) | Ending Account Value (February 28, 2005) | Annualized Expense Ratio | Expenses Paid During Period* (September 1, 2004 to February 28, 2005) | ||||||||
Hong Kong | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,119.30 | 0.58 | % | $ | 3.05 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Malaysia | ||||||||||||
Actual | 1,000.00 | 1,111.40 | 0.58 | 3.04 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Mexico | ||||||||||||
Actual | 1,000.00 | 1,397.50 | 0.58 | 3.45 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
Pacific ex-Japan | ||||||||||||
Actual | 1,000.00 | 1,278.10 | 0.50 | 2.82 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.32 | 0.50 | 2.51 | ||||||||
Singapore | ||||||||||||
Actual | 1,000.00 | 1,165.50 | 0.58 | 3.11 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||
South Africa | ||||||||||||
Actual | 1,000.00 | 1,368.60 | 0.73 | 4.29 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.41 | 0.73 | 3.66 | ||||||||
South Korea | ||||||||||||
Actual | 1,000.00 | 1,419.20 | 0.74 | 4.44 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.12 | 0.74 | 3.71 | ||||||||
Taiwan | ||||||||||||
Actual | 1,000.00 | 1,162.70 | 0.76 | 4.08 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.03 | 0.76 | 3.81 |
* | Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days), and divided by the number of days in the year (365 days). |
14 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.04% | |||||
AIRLINES – 0.53% | |||||
Qantas Airways Ltd. | 639,909 | $ | 1,844,010 | ||
1,844,010 | |||||
BANKS – 28.22% | |||||
Australia & New Zealand Banking Group Ltd. | 1,281,923 | 21,747,278 | |||
Commonwealth Bank of Australia | 896,355 | 25,780,232 | |||
National Australia Bank Ltd. | 1,091,752 | 24,960,595 | |||
Suncorp-Metway Ltd. | 382,665 | 5,735,340 | |||
Westpac Banking Corp. Ltd. | 1,255,517 | 19,046,787 | |||
97,270,232 | |||||
BEVERAGES – 3.19% | |||||
Coca-Cola Amatil Ltd. | 365,593 | 2,374,049 | |||
Foster’s Group Ltd. | 1,408,268 | 5,824,538 | |||
Lion Nathan Ltd. | 207,871 | 1,244,239 | |||
Southcorp Ltd. | 447,752 | 1,549,753 | |||
10,992,579 | |||||
BIOTECHNOLOGY – 0.48% | |||||
Sonic Healthcare Ltd. | 172,660 | 1,659,871 | |||
1,659,871 | |||||
BUILDING MATERIALS – 3.15% | |||||
Boral Ltd. | 405,333 | 2,059,351 | |||
CSR Ltd. | 647,281 | 1,238,364 | |||
James Hardie Industries NV | 324,659 | 1,554,115 | |||
Rinker Group Ltd. | 662,765 | 5,997,950 | |||
10,849,780 | |||||
COMMERCIAL SERVICES – 1.25% | |||||
Brambles Industries Ltd.1 | 681,390 | 4,294,916 | |||
4,294,916 | |||||
COMPUTERS – 0.37% | |||||
Computershare Ltd. | 276,855 | 1,265,941 | |||
1,265,941 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.51% | |||||
Australian Stock Exchange Ltd.1 | 72,653 | 1,194,461 | |||
Macquarie Bank Ltd. | 156,170 | 6,099,597 | |||
Perpetual Trustees Australia Ltd.1 | 27,160 | 1,343,248 | |||
8,637,306 | |||||
ENGINEERING & CONSTRUCTION – 0.22% | |||||
Leighton Holdings Ltd.1 | 96,418 | 765,414 | |||
765,414 | |||||
ENTERTAINMENT – 2.00% | |||||
Aristocrat Leisure Ltd.1 | 219,220 | 1,874,280 | |||
TABCORP Holdings Ltd. | 365,657 | 5,027,594 | |||
6,901,874 | |||||
FOOD – 2.63% | |||||
Woolworths Ltd. | 734,416 | 9,071,731 | |||
9,071,731 | |||||
FOREST PRODUCTS & PAPER – 0.33% | |||||
PaperlinX Ltd.1 | 315,541 | 1,129,720 | |||
1,129,720 | |||||
GAS – 1.05% | |||||
Australian Gas Light Co. Ltd. | 320,227 | 3,622,524 | |||
3,622,524 | |||||
HEALTH CARE-PRODUCTS – 0.26% | |||||
Cochlear Ltd.1 | 38,137 | 881,004 | |||
881,004 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.56% | |||||
Patrick Corp. Ltd.1 | 397,172 | 1,932,758 | |||
1,932,758 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.21% | |||||
Pacific Brands Ltd. | 355,602 | 733,966 | |||
733,966 | |||||
INSURANCE – 6.19% | |||||
AMP Ltd. | 1,309,773 | 7,611,065 | |||
AXA Asia Pacific Holdings Ltd. | 493,148 | 1,671,643 | |||
Insurance Australia Group Ltd. | 1,121,424 | 5,697,552 | |||
QBE Insurance Group Ltd. | 523,394 | 6,361,249 | |||
21,341,509 | |||||
INVESTMENT COMPANIES – 1.14% | |||||
Macquarie Infrastructure Group | 1,364,429 | 3,942,673 | |||
3,942,673 | |||||
IRON & STEEL – 1.43% | |||||
BHP Steel Ltd.1 | 527,201 | 4,055,445 | |||
OneSteel Ltd. | 391,261 | 857,263 | |||
4,912,708 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
MANUFACTURING – 3.65% | ||||||
Ansell Ltd. | 101,462 | $ | 814,316 | |||
Futuris Corp. Ltd. | 366,095 | 598,687 | ||||
Orica Ltd. | 191,284 | 2,953,498 | ||||
Wesfarmers Ltd. | 265,028 | 8,226,346 | ||||
12,592,847 | ||||||
MEDIA – 0.97% | ||||||
John Fairfax Holdings Ltd. | 651,255 | 2,192,075 | ||||
Publishing & Broadcasting Ltd. | 93,508 | 1,149,843 | ||||
3,341,918 | ||||||
MINING – 17.21% | ||||||
Alumina Ltd. | 817,016 | 3,910,990 | ||||
BHP Billiton Ltd. | 2,521,688 | 38,315,256 | ||||
Iluka Resources Ltd. | 163,325 | 736,444 | ||||
Newcrest Mining Ltd. | 232,897 | 3,189,271 | ||||
Rio Tinto Ltd.1 | 219,240 | 8,228,785 | ||||
WMC Resources Ltd. | 822,463 | 4,955,604 | ||||
59,336,350 | ||||||
OIL & GAS – 3.26% | ||||||
Origin Energy Ltd. | 468,151 | 2,571,760 | ||||
Origin Energy Ltd. Rights2 | 76,547 | 74,744 | ||||
Santos Ltd. | 409,678 | 2,894,484 | ||||
Woodside Petroleum Ltd. | 328,762 | 5,684,312 | ||||
11,225,300 | ||||||
PACKAGING & CONTAINERS – 1.03% | ||||||
Amcor Ltd. | 622,061 | 3,545,650 | ||||
3,545,650 | ||||||
PHARMACEUTICALS – 1.45% | ||||||
CSL Ltd. | 139,583 | 3,551,395 | ||||
Mayne Group Ltd. | 452,893 | 1,445,307 | ||||
4,996,702 | ||||||
REAL ESTATE – 10.77% | ||||||
Centro Properties Group | 542,618 | 2,183,940 | ||||
Commonwealth Property Office Fund1 | 924,119 | 895,007 | ||||
DB RREEF Trust | 1,731,256 | 1,745,434 | ||||
Gandel Retail Trust | 1,047,794 | 1,305,912 | ||||
General Property Trust | 1,416,373 | 4,115,259 | ||||
ING Industrial Fund | 494,312 | 808,364 | ||||
Investa Property Group1 | 1,021,216 | 1,653,812 | ||||
Lend Lease Corp Ltd. | 254,043 | 2,500,733 | ||||
Macquarie Goodman Group2 | 736,507 | 2,291,930 | ||||
Mirvac Group | 587,626 | 2,108,521 | ||||
Stockland Trust Group | 888,632 | 4,063,337 | ||||
Westfield Group | 1,006,763 | 13,466,837 | ||||
37,139,086 | ||||||
RETAIL – 2.05% | ||||||
Coles Myer Ltd. | 823,779 | 6,245,289 | ||||
Harvey Norman Holdings Ltd. | 373,547 | 821,417 | ||||
7,066,706 | ||||||
TELECOMMUNICATIONS – 2.42% | ||||||
Telstra Corp. Ltd.1 | 1,489,668 | 6,220,334 | ||||
Transurban Group1 | 377,039 | 2,119,132 | ||||
8,339,466 | ||||||
TRANSPORTATION – 0.51% | ||||||
Toll Holdings Ltd. | 170,526 | 1,758,483 | ||||
1,758,483 | ||||||
TOTAL COMMON STOCKS | 341,393,024 | |||||
SHORT-TERM INVESTMENTS – 7.26% | ||||||
COMMERCIAL PAPER3 – 1.70% | ||||||
Amstel Funding Corp. | $ | 50,071 | 49,370 | |||
Amsterdam Funding Corp. | 132,509 | 132,457 | ||||
ANZ National Bank Ltd. | 60,231 | 59,411 | ||||
Barton Capital Corp. | 266,532 | 266,317 | ||||
Blue Ridge Asset Funding Corp. | 132,509 | 132,304 | ||||
Bryant Park Funding LLC | 12,046 | 12,034 | ||||
Chariot Funding LLC | 120,462 | 120,292 | ||||
Chesham Finance LLC | 48,185 | 48,175 | ||||
Corporate Asset Funding | 60,231 | 60,133 |
16 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
CRC Funding LLC | $ | 30,116 | $ | 30,094 | ||
Delaware Funding Corp. | 223,388 | 223,141 | ||||
DEPFA Bank PLC | 60,231 | 59,991 | ||||
Edison Asset Securitization | 391,503 | 390,796 | ||||
Fairway Finance LLC | 114,839 | 114,715 | ||||
Falcon Asset Securitization Corp. | 464,458 | 463,916 | ||||
Ford Credit Auto Receivables | 279,714 | 279,200 | ||||
Ford Credit Floorplan Motown | 150,578 | 150,516 | ||||
Fortis Funding LLC | 168,647 | 167,888 | ||||
General Electric Capital Corp. | 265,017 | 264,329 | ||||
Giro Funding US Corp. | 145,219 | 145,064 | ||||
Grampian Funding LLC | 355,364 | 350,994 | ||||
Jupiter Securitization Corp. | 549,586 | 549,087 | ||||
Kitty Hawk Funding Corp. | 180,694 | 180,516 | ||||
Liberty Street Funding Corp. | 66,254 | 66,190 | ||||
Moat Funding LLC | 24,092 | 24,056 | ||||
Nordea North America Inc. | 60,231 | 59,626 | ||||
Park Avenue Receivables Corp. | 188,165 | 188,037 | ||||
Park Granada LLC | 84,324 | 84,216 | ||||
Preferred Receivables Funding Corp. | 255,957 | 255,603 | ||||
Ranger Funding Co. LLC | 35,822 | 35,814 | ||||
Santander Central Hispano | 150,578 | 149,097 | ||||
Scaldis Capital LLC | 30,149 | 29,852 | ||||
Ticonderoga Master Funding Ltd. | 204,290 | 203,991 | ||||
Tulip Funding Corp. | 201,083 | 201,083 | ||||
UBS Finance (Delaware) | 240,925 | 240,925 | ||||
Windmill Funding Corp. | 42,162 | 42,141 | ||||
Yorktown Capital LLC | 42,162 | 42,114 | ||||
5,873,485 | ||||||
FLOATING RATE NOTES3 – 2.67% | ||||||
Allstate Life Global Funding II | 55,413 | 55,415 | ||||
American Express Centurion Bank | 180,694 | 180,694 | ||||
American Express Credit Corp. | 240,925 | 241,004 | ||||
Bank of Nova Scotia | 78,301 | 78,280 | ||||
Beta Finance Inc. | 451,734 | 451,770 |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Canadian Imperial Bank of Commerce | $ | 409,572 | $ | 409,492 | ||
CC USA Inc. | 240,925 | 240,906 | ||||
Commodore CDO Ltd. | 30,116 | 30,116 | ||||
Den Danske Bank NY | 361,387 | 361,331 | ||||
DEPFA Bank PLC | 120,462 | 120,462 | ||||
Dorada Finance Inc. | 99,984 | 99,971 | ||||
Fairway Finance LLC | 180,694 | 180,692 | ||||
Fifth Third Bancorp | 240,925 | 240,925 | ||||
Five Finance Inc. | 156,601 | 156,608 | ||||
General Electric Capital Corp. | 54,208 | 54,283 | ||||
General Electric Commercial Equipment Financing LLC | 51,447 | 51,447 | ||||
Hartford Life Global Funding Trust | 120,462 | 120,462 | ||||
HBOS Treasury Services PLC | 361,387 | 361,386 | ||||
K2 USA LLC | 542,081 | 542,088 | ||||
Leafs LLC | 126,486 | 126,486 | ||||
Links Finance LLC | 493,896 | 494,024 | ||||
Lothian Mortgages PLC | 240,925 | 240,925 | ||||
MetLife Funding Inc. | 180,694 | 180,694 | ||||
National City Bank (Ohio) | 301,156 | 301,134 | ||||
Nationwide Building Society | 445,711 | 445,805 | ||||
Norddeutsche Landesbank | 120,462 | 120,445 | ||||
Northern Rock PLC | 361,387 | 361,387 | ||||
Permanent Financing PLC | 325,249 | 325,249 | ||||
Sedna Finance Inc. | 66,254 | 66,240 | ||||
Sigma Finance Inc. | 614,359 | 614,389 | ||||
Tango Finance Corp. | 370,663 | 370,648 | ||||
Wachovia Asset Securitization Inc. | 361,387 | 361,388 | ||||
Wells Fargo & Co. | 60,231 | 60,240 | ||||
WhistleJacket Capital LLC | 421,619 | 421,581 | ||||
White Pine Finance LLC | 658,930 | 658,882 |
18 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Winston Funding Ltd. | $ | 86,010 | $ | 86,010 | ||
9,212,859 | ||||||
MEDIUM-TERM NOTES3 – 0.04% | ||||||
CC USA Inc. | 120,462 | 120,461 | ||||
120,461 | ||||||
MONEY MARKET FUNDS3 – 0.19% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5 | 566,201 | 566,201 | ||||
BlackRock Temp Cash Money Market Fund | 22,465 | 22,465 | ||||
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares | 45,454 | 45,454 | ||||
634,120 | ||||||
REPURCHASE AGREEMENTS3 – 1.36% | ||||||
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $2,710,604 and effective yields of 2.62% - - 2.63%.6 | $ | 2,710,407 | 2,710,407 | |||
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $1,987,776 and an effective yield of 2.63%.6 | 1,987,631 | 1,987,631 | ||||
4,698,038 | ||||||
TIME DEPOSITS3 – 1.21% | ||||||
Abbey National Treasury Services PLC | 84,324 | 84,322 | ||||
Banco Bilbao Vizcaya Argentaria SA | 180,694 | 180,694 | ||||
BNP Paribas (New York) | 168,647 | 168,647 | ||||
Credit Suisse First Boston | 120,462 | 120,462 | ||||
Deutsche Bank AG | 200,611 | 200,611 | ||||
First Tennessee Bank | 1,301,156 | 301,156 | ||||
HBOS Treasury Services PLC | 197,558 | 197,557 | ||||
Key Bank N.A. | 722,775 | 722,775 | ||||
Natexis Banques | 210,809 | 210,809 | ||||
Norddeutsche Landesbank | 120,462 | 120,456 | ||||
Royal Bank of Scotland | 30,116 | 30,116 | ||||
Societe Generale | 12,046 | 12,046 | ||||
Toronto-Dominion Bank | 481,850 | 481,828 | ||||
UBS AG | 48,185 | 48,182 | ||||
Washington Mutual Bank | 554,127 | 554,128 | ||||
Wells Fargo Bank N.A. | 740,844 | 740,842 | ||||
4,174,631 | ||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.09% | ||||||
Federal Home Loan Mortgage Corp. | 144,378 | 144,098 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Federal National Mortgage Association | $ | 180,694 | $ | 179,025 | |||
323,123 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 25,036,717 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 106.30% | 366,429,741 | ||||||
Other Assets, Less Liabilities – (6.30%) | (21,727,963 | ) | |||||
NET ASSETS – 100.00% | $ | 344,701,778 | |||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
20 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 31.46% | |||||
AGRICULTURE – 1.09% | |||||
Souza Cruz SA | 379,600 | $ | 5,110,776 | ||
5,110,776 | |||||
BANKS – 3.42% | |||||
Banco Bradesco SA1 | 29,797 | 945,296 | |||
Unibanco Uniao de Bancos Brasileiros SA | 1,972,410 | 15,032,973 | |||
15,978,269 | |||||
ELECTRIC – 1.49% | |||||
Centrais Eletricas Brasileiras SA | 475,251,000 | 6,948,345 | |||
6,948,345 | |||||
IRON & STEEL – 3.13% | |||||
Companhia Siderurgica Nacional SA | 563,584 | 14,652,421 | |||
14,652,421 | |||||
MINING – 8.72% | |||||
Companhia Vale do Rio Doce ADR2 | 1,165,311 | 40,785,885 | |||
40,785,885 | |||||
OIL & GAS – 11.31% | |||||
Petroleo Brasileiro SA | 1,075,900 | 52,863,643 | |||
52,863,643 | |||||
TELECOMMUNICATIONS – 1.77% | |||||
Brasil Telecom Participacoes SA | 316,092,000 | 3,117,201 | |||
Tele Norte Leste Participacoes SA | 259,711 | 5,154,531 | |||
8,271,732 | |||||
WATER – 0.53% | |||||
Companhia de Saneamento Basico do Estado de Sao Paulo | 40,810,000 | 2,478,678 | |||
2,478,678 | |||||
TOTAL COMMON STOCKS | 147,089,749 | ||||
PREFERRED STOCKS – 68.10% | |||||
AEROSPACE & DEFENSE – 2.55% | |||||
Embraer-Empresa Brasileira de Aeronautica SA | 1,409,843 | 11,945,280 | |||
11,945,280 | |||||
BANKS – 10.21% | |||||
Banco Bradesco SA | 690,893 | 21,891,532 | |||
Banco Itau Holding Financeira SA | 148,437 | 25,842,596 | |||
47,734,128 | |||||
BEVERAGES – 4.73% | |||||
Companhia de Bebidas das Americas | 74,571,000 | 22,128,812 | |||
22,128,812 | |||||
BUILDING MATERIALS – 0.43% | |||||
Duratex SA | 42,294,000 | 1,996,273 | |||
1,996,273 | |||||
CHEMICALS – 1.61% | |||||
Braskem SA Class A | 148,459,000 | 7,524,181 | |||
7,524,181 | |||||
ELECTRIC – 3.82% | |||||
Centrais Eletricas Brasileiras SA Class B | 314,237,000 | 4,400,958 | |||
Companhia Energetica de Minas Gerais | 402,164,467 | 10,471,289 | |||
Companhia Paranaense de Energia Class B | 541,699,000 | 2,973,868 | |||
17,846,115 | |||||
FOOD – 1.84% | |||||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar | 153,594,000 | 3,660,466 | |||
Sadia SA | 2,597,000 | 4,963,412 | |||
8,623,878 | |||||
FOREST PRODUCTS & PAPER – 3.76% | |||||
Aracruz Celulose SA Class B | 1,855,000 | 7,090,589 | |||
Klabin SA | 2,509,444 | 4,883,452 | |||
Votorantim Celulose e Papel SA | 371,000 | 5,582,045 | |||
17,556,086 | |||||
IRON & STEEL – 5.75% | |||||
Companhia Siderurgica de Tubarao | 63,070,000 | 4,021,254 | |||
Gerdau SA | 556,678 | 10,973,109 | |||
Usinas Siderurgicas de Minas Gerais SA Class A | 445,200 | 11,867,407 | |||
26,861,770 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
MINING – 11.61% | ||||||
Caemi Mineracao e Metalurgica SA1 | 6,913,585 | $ | 7,141,608 | |||
Companhia Vale do Rio Doce Class A | 1,632,400 | 47,113,663 | ||||
54,255,271 | ||||||
OIL & GAS – 12.98% | ||||||
Petroleo Brasileiro SA | 1,409,800 | 60,668,171 | ||||
60,668,171 | ||||||
TELECOMMUNICATIONS – 8.46% | ||||||
Brasil Telecom Participacoes SA | 1,005,039,000 | 6,824,034 | ||||
Embratel Participacoes SA1 | 992,481,000 | 1,754,766 | ||||
Tele Centro Oeste Celular Participacoes SA | 908,950,802 | 3,428,672 | ||||
Tele Norte Leste Participacoes SA | 964,652 | 16,025,595 | ||||
Telemig Celular Participacoes SA | 1,069,685,000 | 1,618,134 | ||||
Telesp Celular Participacoes SA1 | 2,407,265,180 | 6,584,520 | ||||
TIM Participacoes SA | 2,028,851,907 | 3,320,257 | ||||
39,555,978 | ||||||
TEXTILES – 0.35% | ||||||
Companhia de Tecidos Norte de Minas | 16,324,400 | 1,648,387 | ||||
1,648,387 | ||||||
TOTAL PREFERRED STOCKS | 318,344,330 | |||||
SHORT-TERM INVESTMENTS – 2.17% | ||||||
COMMERCIAL PAPER3 – 0.44% | ||||||
Amstel Funding Corp. | $ | 17,696 | 17,448 | |||
Amsterdam Funding Corp. | 46,831 | 46,812 | ||||
ANZ National Bank Ltd. | 21,287 | 20,997 | ||||
Barton Capital Corp. | 94,198 | 94,122 | ||||
Blue Ridge Asset Funding Corp. | 46,831 | 46,759 | ||||
Bryant Park Funding LLC | 4,257 | 4,253 | ||||
Chariot Funding LLC | 42,574 | 42,514 | ||||
Chesham Finance LLC | 17,030 | 17,026 | ||||
Corporate Asset Funding | 21,287 | 21,252 | ||||
CRC Funding LLC | 10,643 | 10,636 | ||||
Delaware Funding Corp. | 78,950 | 78,862 | ||||
DEPFA Bank PLC | 21,287 | 21,202 | ||||
Edison Asset Securitization | 138,365 | 138,115 | ||||
Fairway Finance LLC | 40,586 | 40,543 | ||||
Falcon Asset Securitization Corp. | 164,148 | 163,957 | ||||
Ford Credit Auto Receivables | 98,856 | 98,676 | ||||
Ford Credit Floorplan Motown | 53,217 | 53,196 | ||||
Fortis Funding LLC | 59,603 | 59,335 | ||||
General Electric Capital Corp. | 93,662 | 93,420 | ||||
Giro Funding US Corp. | 51,323 | 51,268 | ||||
Grampian Funding LLC | 125,593 | 124,048 | ||||
Jupiter Securitization Corp. | 194,235 | 194,059 | ||||
Kitty Hawk Funding Corp. | 63,861 | 63,798 |
22 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Liberty Street Funding Corp. | $ | 23,416 | $ | 23,392 | ||
Moat Funding LLC | 8,515 | 8,502 | ||||
Nordea North America Inc. | 21,287 | 21,073 | ||||
Park Avenue Receivables Corp. | 66,501 | 66,456 | ||||
Park Granada LLC | 29,802 | 29,764 | ||||
Preferred Receivables Funding Corp. | 90,460 | 90,335 | ||||
Ranger Funding Co. LLC | 12,660 | 12,657 | ||||
Santander Central Hispano | 53,217 | 52,694 | ||||
Scaldis Capital LLC | 10,655 | 10,550 | ||||
Ticonderoga Master Funding Ltd. | 72,200 | 72,094 | ||||
Tulip Funding Corp. | 71,067 | 71,067 | ||||
UBS Finance (Delaware) | 85,148 | 85,148 | ||||
Windmill Funding Corp. | 14,901 | 14,893 | ||||
Yorktown Capital LLC | 14,901 | 14,884 | ||||
2,075,807 | ||||||
FLOATING RATE NOTES3 – 0.70% | ||||||
Allstate Life Global Funding II | 19,584 | 19,585 | ||||
American Express Centurion Bank | 63,861 | 63,861 | ||||
American Express Credit Corp. | 85,148 | 85,176 | ||||
Bank of Nova Scotia | 27,673 | 27,666 | ||||
Beta Finance Inc. | 159,652 | 159,664 | ||||
Canadian Imperial Bank of Commerce | 144,751 | 144,723 | ||||
CC USA Inc. | 85,148 | 85,141 | ||||
Commodore CDO Ltd. | 10,643 | 10,643 | ||||
Den Danske Bank NY | 127,721 | 127,702 | ||||
DEPFA Bank PLC | 42,574 | 42,574 | ||||
Dorada Finance Inc. | 35,336 | 35,332 | ||||
Fairway Finance LLC | 63,861 | 63,860 | ||||
Fifth Third Bancorp | 85,148 | 85,148 | ||||
Five Finance Inc. | 55,346 | 55,349 | ||||
General Electric Capital Corp. | 19,158 | 19,185 | ||||
General Electric Commercial | 18,182 | 18,182 | ||||
Hartford Life Global Funding Trust | 42,574 | 42,574 | ||||
HBOS Treasury Services PLC | 127,721 | 127,722 | ||||
K2 USA LLC | 191,582 | 191,586 | ||||
Leafs LLC | 44,703 | 44,702 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Links Finance LLC | $ | 174,553 | $ | 174,598 | ||
Lothian Mortgages PLC | 85,148 | 85,148 | ||||
MetLife Funding Inc. | 63,861 | 63,861 | ||||
National City Bank (Ohio) | 106,435 | 106,427 | ||||
Nationwide Building Society | 157,523 | 157,556 | ||||
Norddeutsche Landesbank | 42,574 | 42,568 | ||||
Northern Rock PLC | 127,721 | 127,722 | ||||
Permanent Financing PLC | 114,949 | 114,949 | ||||
Sedna Finance Inc. | 23,416 | 23,411 | ||||
Sigma Finance Inc. | 217,126 | 217,137 | ||||
Tango Finance Corp. | 131,000 | 130,994 | ||||
Wachovia Asset Securitization Inc. | 127,721 | 127,722 | ||||
Wells Fargo & Co. | 21,287 | 21,290 | ||||
WhistleJacket Capital LLC | 149,008 | 148,996 | ||||
White Pine Finance LLC | 232,879 | 232,863 | ||||
Winston Funding Ltd. | 30,398 | 30,398 | ||||
3,256,015 | ||||||
MEDIUM-TERM NOTES3 – 0.01% | ||||||
CC USA Inc. | 42,574 | 42,574 | ||||
42,574 | ||||||
MONEY MARKET FUNDS3 – 0.33% | ||||||
Barclays Global Investors Funds | 1,511,654 | 1,511,654 | ||||
BlackRock Temp Cash Money Market Fund | 7,940 | 7,940 | ||||
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares | 16,064 | 16,064 | ||||
1,535,658 | ||||||
REPURCHASE AGREEMENTS3 – 0.35% | ||||||
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $957,981 and effective yields of 2.62% - 2.63%.6 | $ | 957,911 | 957,911 | |||
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $702,520 and an effective yield of 2.63%.6 | 702,468 | 702,468 | ||||
1,660,379 | ||||||
TIME DEPOSITS3 – 0.32% | ||||||
Abbey National Treasury Services PLC | 29,802 | 29,801 | ||||
Banco Bilbao Vizcaya Argentaria SA | 63,861 | 63,860 |
24 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
BNP Paribas (New York) | $ | 59,603 | $ | 59,604 | |||
Credit Suisse First Boston | 42,574 | 42,574 | |||||
Deutsche Bank AG | 70,900 | 70,900 | |||||
First Tennessee Bank | 106,435 | 106,435 | |||||
HBOS Treasury Services PLC | 69,821 | 69,821 | |||||
Key Bank N.A. | 255,443 | 255,443 | |||||
Natexis Banques | 74,504 | 74,504 | |||||
Norddeutsche Landesbank | 42,574 | 42,572 | |||||
Royal Bank of Scotland | 10,643 | 10,643 | |||||
Societe Generale | 4,257 | 4,257 | |||||
Toronto-Dominion Bank | 170,295 | 170,289 | |||||
UBS AG | 17,030 | 17,028 | |||||
Washington Mutual Bank | 195,840 | 195,840 | |||||
Wells Fargo Bank N.A. | 261,829 | 261,829 | |||||
1,475,400 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.02% | |||||||
Federal Home Loan Mortgage Corp. | 51,026 | 50,927 | |||||
Federal National Mortgage Association | 63,861 | 63,271 | |||||
114,198 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 10,160,031 | ||||||
TOTAL INVESTMENTS | 475,594,110 | ||||||
Other Assets, Less Liabilities – (1.73%) | (8,102,340 | ) | |||||
NET ASSETS – 100.00% | $ | 467,491,770 | |||||
ADR – American Depositary Receipts
1 | Non-income earning security. |
2 | All or a portion of this security represents a security on loan. See Note 5. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.78% | |||||
AEROSPACE & DEFENSE – 0.17% | |||||
CAE Inc. | 113,665 | $ | 522,460 | ||
522,460 | |||||
AUTO PARTS & EQUIPMENT – 1.21% | |||||
Magna International Inc. Class A | 51,194 | 3,796,236 | |||
3,796,236 | |||||
BANKS – 20.32% | |||||
Bank of Montreal | 267,963 | 11,926,664 | |||
Bank of Nova Scotia | 525,186 | 17,090,335 | |||
Canadian Imperial Bank of Commerce | 186,518 | 10,448,771 | |||
National Bank of Canada | 96,481 | 4,160,802 | |||
Royal Bank of Canada | 343,322 | 20,179,804 | |||
63,806,376 | |||||
BEVERAGES – 0.18% | |||||
Cott Corp.1 | 23,807 | 580,068 | |||
580,068 | |||||
BUILDING MATERIALS – 0.32% | |||||
Masonite International Corp.1 | 29,714 | 1,012,867 | |||
1,012,867 | |||||
CHEMICALS – 3.18% | |||||
Agrium Inc. | 72,316 | 1,306,653 | |||
Methanex Corp. | 52,268 | 948,240 | |||
NOVA Chemicals Corp. | 50,120 | 2,528,018 | |||
Potash Corp. of Saskatchewan Inc. | 58,712 | 5,217,783 | |||
10,000,694 | |||||
COMMERCIAL SERVICES – 0.25% | |||||
Quebecor World Inc. | 34,368 | 796,850 | |||
796,850 | |||||
COMPUTERS – 0.30% | |||||
CGI Group Inc.1 | 144,283 | 933,168 | |||
933,168 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.99% | |||||
C.I. Fund Management Inc. | 70,636 | 988,398 | |||
IGM Financial Inc. | 61,218 | 1,871,601 | |||
TSX Group Inc. | 5,329 | 255,785 | |||
3,115,784 | |||||
ELECTRIC – 0.19% | |||||
TransAlta Corp. | 40,633 | 588,405 | |||
588,405 | |||||
ELECTRONICS – 0.39% | |||||
Celestica Inc.1 | 95,049 | 1,221,749 | |||
1,221,749 | |||||
ENERGY – ALTERNATE SOURCES – 0.09% | |||||
Ballard Power Systems Inc.1 | 48,867 | 292,598 | |||
292,598 | |||||
ENGINEERING & CONSTRUCTION – 0.42% | |||||
SNC-Lavalin Group Inc. | 26,134 | 1,326,685 | |||
1,326,685 | |||||
ENTERTAINMENT – 0.14% | |||||
Intrawest Corp. | 22,912 | 436,916 | |||
436,916 | |||||
FOOD – 1.62% | |||||
George Weston Ltd. | 16,289 | 1,431,185 | |||
Loblaw Companies Ltd. | 63,008 | 3,644,540 | |||
5,075,725 | |||||
FOREST PRODUCTS & PAPER – 0.56% | |||||
Abitibi-Consolidated Inc. | 157,162 | 731,343 | |||
Domtar Inc. | 111,875 | 1,012,991 | |||
1,744,334 | |||||
HAND & MACHINE TOOLS – 0.34% | |||||
Finning International Inc. | 39,738 | 1,068,452 | |||
1,068,452 | |||||
HEALTH CARE-SERVICES – 0.33% | |||||
MDS Inc. | 78,402 | 1,026,906 | |||
1,026,906 | |||||
HOLDING COMPANIES – DIVERSIFIED – 1.89% | |||||
Brascan Corp. Class A | 128,733 | 4,754,701 | |||
Onex Corp. | 71,990 | 1,180,116 | |||
5,934,817 | |||||
INSURANCE – 13.26% | |||||
Fairfax Financial Holdings Ltd. | 5,907 | 969,523 | |||
Great-West Lifeco Inc. | 148,578 | 3,523,470 | |||
Manulife Financial Corp. | 403,287 | 18,678,107 | |||
Power Corp. of Canada | 179,358 | 4,618,191 | |||
Power Financial Corp. | 138,904 | 3,757,369 | |||
Sun Life Financial Inc. | 317,546 | 10,100,918 | |||
41,647,578 |
26 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2005
Security | Shares | Value | |||
IRON & STEEL – 0.46% | |||||
Dofasco Inc. | 44,571 | $ | 1,455,483 | ||
1,455,483 | |||||
LODGING – 0.57% | |||||
Fairmont Hotels & Resorts Inc. | 25,060 | 801,830 | |||
Four Seasons Hotels Inc. | 13,610 | 984,765 | |||
1,786,595 | |||||
MANUFACTURING – 0.18% | |||||
Bombardier Inc. Class B | 268,770 | 579,434 | |||
579,434 | |||||
MEDIA – 2.84% | |||||
Rogers Communications Inc. Class B | 87,710 | 2,386,837 | |||
Shaw Communications Inc. Class B | 98,328 | 1,808,653 | |||
Thomson Corp. | 138,546 | 4,728,282 | |||
8,923,772 | |||||
MINING – 12.68% | |||||
Aber Diamond Corp. | 12,709 | 427,011 | |||
Agnico-Eagle Mines Ltd. | 42,602 | 625,929 | |||
Alcan Inc. | 194,036 | 7,774,384 | |||
Barrick Gold Corp. | 269,574 | 6,710,840 | |||
Cameco Corp. | 89,679 | 4,096,547 | |||
Falconbridge Ltd. | 46,361 | 1,361,562 | |||
Glamis Gold Ltd.1 | 69,273 | 1,212,221 | |||
Goldcorp Inc. | 80,371 | 1,080,811 | |||
Inco Ltd.1 | 103,104 | 4,277,826 | |||
Kinross Gold Corp.1 | 165,396 | 1,108,740 | |||
Meridian Gold Inc.1 | 47,614 | 922,686 | |||
Noranda Inc. | 94,691 | 1,756,390 | |||
Novelis Inc.1 | 38,179 | 900,741 | |||
Placer Dome Inc. | 224,108 | 3,865,188 | |||
Teck Cominco Ltd. Class B | 96,302 | 3,693,196 | |||
39,814,072 | |||||
OIL & GAS – 20.37% | |||||
Canadian Natural Resources Ltd. | 130,491 | 7,440,705 | |||
EnCana Corp. | 237,354 | 15,797,210 | |||
Husky Energy Inc. | 71,063 | 2,070,840 | |||
Imperial Oil Ltd. | 69,273 | 5,020,207 | |||
Nexen Inc. | 70,353 | 3,568,017 | |||
Penn West Petroleum Ltd. | 28,103 | 1,918,878 | |||
Petro-Canada | 124,405 | 6,913,526 | |||
Precision Drilling Corp. Class A1 | 30,436 | 2,339,155 | |||
Shell Canada Ltd. | 40,096 | 2,790,606 | |||
Suncor Energy Inc. | 236,101 | 9,175,516 | |||
Talisman Energy Inc. | 200,838 | 6,919,532 | |||
63,954,192 | |||||
PHARMACEUTICALS – 0.77% | |||||
Angiotech Pharmaceuticals Inc.1 | 41,349 | 687,244 | |||
Biovail Corp.1 | 68,020 | 1,081,835 | |||
QLT Corp.1 | 45,466 | 636,199 | |||
2,405,278 | |||||
PIPELINES – 3.48% | |||||
Enbridge Inc. | 90,574 | 4,508,805 | |||
TransCanada Corp. | 265,815 | 6,426,962 | |||
10,935,767 | |||||
REAL ESTATE – 0.92% | |||||
Brookfield Properties Corp. | 51,558 | 2,038,915 | |||
MI Developments Inc. Class A | 26,161 | 844,082 | |||
2,882,997 | |||||
RETAIL – 1.47% | |||||
Canadian Tire Corp. Class A | 43,870 | 2,023,973 | |||
Hudson’s Bay Co. | 42,065 | 431,190 | |||
Shoppers Drug Mart Corp.1 | 65,335 | 2,166,494 | |||
4,621,657 | |||||
SEMICONDUCTORS – 0.75% | �� | ||||
ATI Technologies Inc.1 | 133,907 | 2,363,962 | |||
2,363,962 | |||||
SOFTWARE – 0.74% | |||||
Cognos Inc.1 | 43,676 | 1,882,133 | |||
Open Text Corp.1 | 22,375 | 434,139 | |||
2,316,272 | |||||
TELECOMMUNICATIONS – 4.13% | |||||
Aliant Inc. | 5,808 | 134,710 | |||
BCE Inc. | 168,797 | 3,948,026 | |||
Nortel Networks Corp.1 | 2,209,934 | 5,861,036 | |||
TELUS Corp. | 25,776 | 799,995 | |||
TELUS Corp. NVS | 73,748 | 2,210,880 | |||
12,954,647 | |||||
TRANSPORTATION – 4.27% | |||||
Canadian National Railway Co. | 153,403 | 9,545,880 | |||
Canadian Pacific Railway Ltd. | 89,142 | 3,181,467 |
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2005
Security | Shares | Value | |||
CP Ships Ltd. | 48,509 | $ | 668,913 | ||
13,396,260 | |||||
TOTAL COMMON STOCKS | 313,319,056 | ||||
SHORT-TERM INVESTMENTS – 0.05% | |||||
MONEY MARKET FUNDS – 0.05% | |||||
Barclays Global Investors Funds | 149,431 | 149,431 | |||
149,431 | |||||
TOTAL SHORT-TERM INVESTMENTS | 149,431 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.83% | 313,468,487 | ||||
Other Assets, Less Liabilities – 0.17% | 529,515 | ||||
NET ASSETS – 100.00% | $ | 313,998,002 | |||
NVS – Non-Voting Shares
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
See notes to financial statements.
28 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 97.26% | |||||
ARGENTINA – 0.83% | |||||
Petrobras Energia Participaciones SA ADR1 | 847,997 | $ | 11,829,558 | ||
Tenaris SA ADR | 397,711 | 26,149,498 | |||
37,979,056 | |||||
BRAZIL – 8.28% | |||||
Aracruz Celulose SA ADR1 | 276,252 | 10,585,977 | |||
Banco Bradesco SA ADR1 | 1,457,664 | 46,251,679 | |||
Banco Itau Holding Financiera SA ADR1 | 589,200 | 51,060,074 | |||
Brasil Telecom Participacoes SA ADR | 332,547 | 11,306,598 | |||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR | 404,893 | 9,709,334 | |||
Companhia Vale do Rio Doce ADR1 | 1,946,880 | 68,140,800 | |||
Companhia Vale do Rio Doce Sponsored ADR | 2,534,027 | 72,954,633 | |||
Empresa Brasileira de Aeronautica SA ADR1 | 568,256 | 19,184,323 | |||
Petroleo Brasileiro SA ADR | 1,138,368 | 55,552,358 | |||
Tele Norte Leste Participacoes SA ADR1 | 1,382,511 | 22,797,606 | |||
Telesp Celular Partcipacoes SA ADR | 1,191,563 | 8,257,532 | |||
Votorantim Celulose e Papel ADR | 219,426 | 3,247,505 | |||
379,048,419 | |||||
CHILE – 2.22% | |||||
Banco Santander Chile SA ADR | 824,169 | 29,051,957 | |||
Compania de Telecomunicaciones de Chile SA ADR | 1,434,007 | 17,036,003 | |||
Enersis SA Chile ADR | 2,512,640 | 22,060,979 | |||
Sociedad Quimica y Minera de Chile SA ADR1 | 449,300 | 33,517,780 | |||
101,666,719 | |||||
CHINA – 4.99% | |||||
Aluminum Corp. of China Ltd. Class H1 | 4,992,000 | 3,328,363 | |||
Angang New Steel Co. Ltd. Class H1 | 7,488,000 | 4,680,510 | |||
Beijing Capital International Airport Co. Ltd. Class H | 6,660,000 | 2,668,560 | |||
BYD Co. Ltd.1 | 624,000 | 1,916,209 | |||
China Eastern Airlines Corp. Ltd. Class H1 | 24,128,000 | 4,826,126 | |||
China Life Insurance Co. Ltd. Class H1 | 25,376,000 | 17,732,599 | |||
China Petroleum and Chemical Corp. Class H | 68,224,000 | 31,272,742 | |||
China Shipping Development Co. Ltd. Class H1 | 7,506,000 | 7,458,697 | |||
China Southern Airlines Co. Ltd.1 | 14,150,000 | 5,216,113 | |||
China Telecom Corp. Ltd. Class H | 35,862,000 | 13,794,580 | |||
Cofco International Ltd.1 | 2,502,000 | 1,275,197 | |||
Cosco Pacific Ltd.1 | 2,502,000 | 5,565,953 | |||
Datang International Power Generation Co. Ltd. Class H1 | 3,336,000 | 2,587,820 | |||
Guangshen Railway Co. Ltd. Class H1 | 26,694,363 | 9,840,341 | |||
Huadian Power International Corp. Ltd.1 | 14,178,000 | 4,317,490 | |||
Huaneng Power International Inc. Class H1 | 10,008,000 | 7,763,461 | |||
Jiangsu Expressway Co. Ltd. Class H1 | 2,502,000 | 1,227,076 | |||
Jiangxi Copper Co. Ltd.1 | 8,338,000 | 5,078,182 | |||
Maanshan Iron & Steel Co. Ltd. Class H1 | 9,152,000 | 3,637,730 | |||
PetroChina Co. Ltd. Class H1 | 84,864,000 | 53,589,842 | |||
Ping An Insurance (Group) Co. of China Ltd. Class H | 4,784,000 | 8,035,542 | |||
Qingling Motors Co. Ltd.1 | 5,838,000 | 958,135 | |||
Semiconductor Manufacturing International Corp.1 | 12,480,000 | 2,704,295 | |||
Sinopec Beijing Yanhua Petrochemical Co. Ltd. Class H1 | 5,824,000 | 2,762,968 | |||
Sinopec Shanghai Petrochemical Co. Ltd. Class H | 10,008,000 | 4,330,857 | |||
Sinotrans Ltd.1 | 6,656,000 | 2,261,580 | |||
Travelsky Technology Ltd. Class H | 834,000 | 721,810 | |||
Tsingtao Brewery Co. Ltd. Class H1 | 1,668,000 | 1,796,503 | |||
Yanzhou Coal Mining Co. Ltd. Class H | 5,838,000 | 9,207,080 |
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2005
Security | Shares | Value | |||
Yizheng Chemical Fibre Co. Ltd. Class H1 | 3,336,000 | $ | 688,660 | ||
Zhejiang Expressway Co. Ltd. Class H1 | 10,008,000 | 7,250,175 | |||
228,495,196 | |||||
CZECH REPUBLIC – 2.76% | |||||
CEZ AS | 2,435,476 | 46,580,096 | |||
Komercni Banka AS | 119,181 | 19,874,290 | |||
Philip Morris CR AS | 46,680 | 40,371,542 | |||
Unipetrol AS | 2,394,500 | 19,326,982 | |||
126,152,910 | |||||
HONG KONG – 3.76% | |||||
Air China Ltd. | 12,480,000 | 4,760,519 | |||
Beijing Enterprises Holdings Ltd. | 1,668,000 | 2,448,805 | |||
China Everbright Pacific Ltd.1 | 9,490,000 | 4,532,577 | |||
China Merchants Holdings International Co. Ltd. | 1,668,000 | 3,486,072 | |||
China Mobile Ltd. | 19,760,000 | 64,480,362 | |||
China Overseas Land & Investment Ltd. | 13,322,000 | 3,501,676 | |||
China Resources Enterprises Ltd.1 | 5,838,000 | 8,308,829 | |||
China Resources Land Ltd.1 | 13,344,000 | 3,353,473 | |||
China Travel International Investment Hong Kong Ltd.1 | 29,406,951 | 9,709,122 | |||
Citic Pacific Ltd. | 4,587,000 | 13,291,987 | |||
CNOOC Ltd.1 | 61,227,000 | 35,523,381 | |||
Denway Motors Ltd. | 15,808,000 | 6,131,335 | |||
Lenovo Group Ltd.1 | 17,472,000 | 4,984,543 | |||
Shanghai Industrial Holdings Ltd.1 | 1,668,000 | 3,764,103 | |||
Shenzhen Investment Ltd.1 | 4,170,000 | 652,302 | |||
ZTE Corp. | 915,200 | 3,361,966 | |||
172,291,052 | |||||
HUNGARY – 2.96% | |||||
BorsodChem Rt. | 214,656 | 2,971,527 | |||
Gedeon Richter Rt | 207,772 | 31,939,735 | |||
MATAV Rt | 1,685,681 | 8,793,521 | |||
Mol Magyar Olaj-es Gazipari Rt | 321,152 | 28,304,109 | |||
OTP Bank Rt | 1,587,978 | 63,611,201 | |||
135,620,093 | |||||
INDIA – 5.39% | |||||
HDFC Bank Ltd. ADR1 | 1,054,560 | 49,617,048 | |||
ICICI Bank Ltd. ADR1 | 1,554,676 | 35,213,411 | |||
Infosys Technologies Ltd. ADR1 | 837,603 | 63,867,229 | |||
Mahanagar Telephone Nigam Ltd. ADR | 2,492,847 | 17,026,145 | |||
Satyam Computer Services Ltd. ADR1 | 1,220,572 | 29,769,751 | |||
Videsh Sanchar Nigam Ltd. ADR1 | 2,618,028 | 25,761,396 | |||
Wipro Ltd. ADR1 | 1,184,532 | 25,751,726 | |||
247,006,706 | |||||
INDONESIA – 2.69% | |||||
PT Aneka Tambang Tbk | 31,282,455 | 7,265,167 | |||
PT Astra International Inc. Tbk | 11,470,230 | 13,381,419 | |||
PT Bank Central Asia Tbk | 20,850,000 | 7,376,046 | |||
PT Bank Danamon Indonesia Tbk | 6,458,987 | 3,331,533 | |||
PT Bank Mandiri Tbk | 21,892,500 | 4,280,359 | |||
PT Bank Pan Indonesia Tbk | 84,718,918 | 4,758,718 | |||
PT Bank Rakyat Indonesia Tbk | 19,167,061 | 6,780,678 | |||
PT Bumi Resources Tbk | 38,064,000 | 3,494,939 | |||
PT Gudang Garam Tbk | 4,170,987 | 6,938,504 | |||
PT Hanjaya Mandala Sampoerna Tbk | 11,261,667 | 9,914,403 | |||
PT Kalbe Farma Tbk | 126,565,156 | 10,800,591 | |||
PT Matahari Putra Prima Tbk | 36,496,194 | 2,641,366 | |||
PT Perusahaan Gas Negara Tbk | 11,662,500 | 3,432,926 | |||
PT Ramayana Lestari Sentosa Tbk | 41,709,870 | 3,514,307 | |||
PT Semen Gresik (Persero) Tbk | 224,000 | 430,700 | |||
PT Telekomunikasi Indonesia Tbk | 66,640,186 | 31,853,397 | |||
PT Tempo Scan Pacific Tbk | 467,376 | 416,511 | |||
PT United Tractors Tbk | 8,175,771 | 2,671,532 | |||
123,283,096 | |||||
ISRAEL – 4.42% | |||||
Alvarion Ltd. | 249,600 | 2,520,960 | |||
AudioCodes Ltd.1 | 356,938 | 4,536,682 | |||
Bank Hapoalim Ltd. | 4,832,007 | 17,579,016 | |||
Bank Leumi Le-Israel | 6,326,267 | 18,665,288 | |||
Check Point Software Technologies Ltd.1 | 673,504 | 14,904,644 | |||
Clal Industries and Investments Ltd. | 226,720 | 1,112,093 |
30 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2005
Security | Shares | Value | |||
Clal Insurance Co. Ltd. | 41,184 | $ | 840,443 | ||
ECI Telecom Ltd. | 204,256 | 1,540,090 | |||
Elbit Systems Ltd. | 318,656 | 7,943,500 | |||
Elite Industries Ltd. | 93,600 | 858,834 | |||
Given Imaging Ltd.1 | 62,816 | 1,977,448 | |||
Israel Chemicals Ltd. | 3,678,005 | 9,811,396 | |||
Israel Corp. Ltd. (The) | 4,576 | 1,068,102 | |||
Israel Discount Bank Class A | 7,252,177 | 9,858,024 | |||
Koor Industries Ltd. | 134,841 | 7,510,289 | |||
Lipman Electronic Engineering Ltd. | 44,096 | 1,291,131 | |||
Makhteshim-Agan Industries Ltd. | 1,462,780 | 8,254,943 | |||
M-Systems Flash Disk Pioneers Ltd.1 | 352,352 | 8,322,554 | |||
NICE Systems Ltd. | 41,700 | 1,401,987 | |||
Orbotech Ltd.1 | 319,904 | 7,309,806 | |||
Supersol Ltd. | 817,583 | 2,293,783 | |||
Teva Pharmaceutical Industries Ltd. | 2,031,964 | 61,634,139 | |||
United Mizrahi Bank Ltd. | 2,276,524 | 11,072,435 | |||
202,307,587 | |||||
MEXICO – 7.34% | |||||
Alfa SA de CV Class A | 1,755,295 | 9,890,769 | |||
America Movil SA de CV Series L | 27,962,300 | 81,680,399 | |||
Cemex SA de CV Series CPO | 3,678,005 | 29,442,610 | |||
Consorcio Ara SA de CV2 | 2,919,000 | 10,842,545 | |||
Controladora Comercial Mexicana SA de CV | 4,044,900 | 4,430,819 | |||
Corporacion GEO SA de CV Series B2 | 1,497,600 | 3,773,789 | |||
Fomento Economico Mexicano SA de CV Class UBD | 2,543,700 | 15,296,485 | |||
Grupo Carso SA de CV Series A1 | 125,305 | 676,585 | |||
Grupo Continental SA | 2,215,225 | 4,014,337 | |||
Grupo Financiero Banorte SA de CV Series O | 1,252,114 | 8,668,590 | |||
Grupo Mexico SA de CV Series B2 | 1,876,500 | 10,895,179 | |||
Grupo Modelo SA de CV Series C | 5,475,410 | 16,734,637 | |||
Grupo Televisa SA Series CPO | 8,610,085 | 27,821,169 | |||
Industrias Penoles SA de CV Series CP | 376,120 | 2,049,853 | |||
Kimberly-Clark de Mexico SA de CV Class A | 3,051,070 | 10,136,536 | |||
Telefonos de Mexico SA de CV Series L | 30,971,655 | 60,704,918 | |||
TV Azteca SA de CV Series CPO2 | 4,003,200 | 2,266,558 | |||
Vitro SA de CV Series A | 6,102,345 | 6,101,382 | |||
Wal-Mart de Mexico SA de CV Series V | 8,302,582 | 30,532,813 | |||
335,959,973 | |||||
PERU – 0.28% | |||||
Companhia de Minas Buenaventura SA ADR | 560,844 | 12,989,147 | |||
12,989,147 | |||||
PHILIPPINE ISLANDS – 1.67% | |||||
ABS-CBN Broadcasting Corp. | 11,863,496 | 3,797,187 | |||
Ayala Corp. | 62,924,480 | 9,207,057 | |||
Ayala Land Inc. Class B | 11,724,327 | 2,015,705 | |||
Bank of the Philippine Islands | 8,225,709 | 8,725,947 | |||
Equitable PCI Bank | 4,910,231 | 4,355,669 | |||
Filinvest Land Inc. | 103,293,112 | 3,400,596 | |||
Globe Telecom Inc. | 238,100 | 4,071,760 | |||
Jollibee Foods Corp. | 17,972,615 | 9,697,159 | |||
Manila Electric Co. Class B | 4,597,660 | 2,606,812 | |||
Megaworld Corp. | 70,911,068 | 2,204,825 | |||
Metropolitan Bank & Trust Co. | 40 | 27 | |||
Petron Corp. | 83,403,600 | 6,025,500 | |||
Philippine Long Distance Telephone Co. | 518,105 | 13,076,999 | |||
SM Prime Holdings Inc. | 46,394,830 | 7,297,587 | |||
76,482,830 | |||||
RUSSIA – 3.83% | |||||
JSC MMC Norilsk Nickel ADR | 288,426 | 19,036,116 | |||
LUKOIL ADR1 | 602,905 | 84,255,974 | |||
Rostelecom ADR1 | 302,537 | 3,890,626 | |||
Surgutneftegaz ADR1 | 1,532,549 | 64,060,548 | |||
Tatneft ADR1 | 112,795 | 4,051,596 | |||
175,294,860 | |||||
SOUTH AFRICA – 13.37% | |||||
African Bank Investments Ltd. | 4,049,439 | 12,158,694 | |||
Alexander Forbes Ltd. | 4,024,108 | 8,089,811 | |||
Anglo American Platinum Corp. Ltd. | 226,424 | 8,986,552 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2005
Security | Shares | Value | |||
AngloGold Ashanti Ltd.1 | 458,474 | $ | 16,455,870 | ||
Anglovaal Industries Ltd. | 1,677,712 | 4,414,993 | |||
Barloworld Ltd. | 878,796 | 16,074,473 | |||
Bidvest Group Ltd. | 1,038,114 | 13,544,629 | |||
Bidvest Group Ltd. Warrants (Expiring 12/8/06)2 | 18,430 | 62,016 | |||
Consol Ltd.2 | 1,677,712 | 3,358,290 | |||
Edgars Consolidated Stores Ltd. | 175,968 | 9,018,472 | |||
FirstRand Ltd. | 11,953,875 | 28,858,200 | |||
Foschini Ltd. | 3,482,366 | 23,730,362 | |||
Gold Fields Ltd. | 1,370,766 | 16,333,145 | |||
Impala Platinum Holdings Ltd. | 196,817 | 17,355,068 | |||
Imperial Holdings Ltd.2 | 1,087,077 | 19,884,239 | |||
Investec Ltd. | 364,861 | 10,829,258 | |||
Iscor Ltd. | 1,494,055 | 16,525,988 | |||
JD Group Ltd. | 1,183,192 | 13,271,237 | |||
Liberty Group Ltd.1 | 655,876 | 7,379,249 | |||
Massmart Holdings Ltd. | 641,326 | 5,035,389 | |||
Metoz Holdings Ltd. | 13,457,678 | 6,270,133 | |||
MTN Group Ltd. | 4,341,424 | 35,802,392 | |||
Nampak Ltd. | 3,206,187 | 8,907,535 | |||
Naspers Ltd. | 1,629,573 | 21,894,298 | |||
Nedcor Ltd. | 1,311,233 | 18,105,946 | |||
Network Healthcare Holdings Ltd.2 | 7,197,776 | 6,272,382 | |||
New Africa Capital Ltd. | 3,685,511 | 7,186,526 | |||
Old Mutual PLC | 14,627,991 | 39,832,219 | |||
Pick’n Pay Stores Ltd.1 | 1,906,958 | 7,601,441 | |||
Reunert Ltd. | 660,192 | 4,055,674 | |||
Sanlam Ltd. | 11,340,284 | 26,124,502 | |||
Sappi Ltd. | 808,740 | 10,958,018 | |||
Sasol Ltd. | 2,395,362 | 60,348,548 | |||
Shoprite Holdings Ltd. | 4,848,481 | 11,838,726 | |||
SPAR Group Ltd. (The)2 | 669,052 | 2,903,626 | |||
Standard Bank Group Ltd. | 3,706,789 | 41,110,142 | |||
Steinhoff International Holdings Ltd. | 699,296 | 1,644,749 | |||
Telkom South Africa Ltd. | 503,927 | 9,852,362 | |||
Tiger Brands Ltd.1 | 669,052 | 11,753,047 | |||
Tongaat-Hulett Group Ltd. | 605,469 | 6,270,912 | |||
Truworths International Ltd.1 | 3,717,795 | 11,162,912 | |||
Woolworths Holdings Ltd. | 6,084,420 | 10,950,812 | |||
612,212,837 | |||||
SOUTH KOREA – 17.28% | |||||
Kookmin Bank ADR1 | 2,836,288 | 130,724,514 | |||
Korea Electric Power Corp. ADR1 | 6,510,400 | 91,145,600 | |||
KT Corp. ADR1 | 2,605,437 | 60,472,190 | |||
POSCO ADR | 2,674,880 | 145,112,240 | |||
Samsung Electronics Co. Ltd. GDR3 | 1,212,733 | 314,097,847 | |||
SK Telecom Co. Ltd. ADR1 | 2,327,654 | 49,579,028 | |||
791,131,419 | |||||
TAIWAN – 9.66% | |||||
AU Optronics Corp. ADR1 | 5,838,148 | 93,410,368 | |||
Chunghwa Telecom Co. Ltd. ADR1 | 3,498,420 | 76,265,553 | |||
Siliconware Precision Industries Co. ADR1 | 17,312,720 | 79,292,256 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR1 | 13,159,883 | 120,018,131 | |||
United Microelectronics Corp. ADR1 | 19,835,473 | 73,391,250 | |||
442,377,558 | |||||
THAILAND – 3.78% | |||||
Advanced Info Service PCL | 3,210,900 | 9,229,135 | |||
Bangkok Bank PCL | 3,917,600 | 12,386,454 | |||
Bangkok Expressway PCL | 7,756,200 | 5,877,444 | |||
Banpu PCL | 1,251,000 | 5,818,605 | |||
Charoen Pokphand Foods PCL | 28,000 | 2,692 | |||
Electricity Generating PCL | 1,707,600 | 3,792,684 | |||
Kasikornbank PCL | 5,963,100 | 10,205,985 | |||
Kiatnakin Finance PCL | 3,123,100 | 3,019,459 | |||
Kim Eng Securities Thailand PCL | 2,680,200 | 2,591,257 | |||
Krung Thai Bank PCL | 7,127,100 | 1,862,320 | |||
Land and House PCL | 14,938,500 | 3,981,518 | |||
National Finance PCL | 7,500,500 | 2,861,440 | |||
National Petrochemical PCL | 1,668,000 | 5,317,376 | |||
PTT Exploration & Production PCL | 1,334,400 | 11,436,718 | |||
PTT PCL | 6,844,400 | 38,630,531 |
32 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2005
Security | Shares | Value | ||||
Ratchaburi Electricity Generating Holding PCL | 13,739,800 | $ | 15,078,955 | |||
Sahaviriya Steel Industries PCL | 61,864,200 | 4,849,558 | ||||
Shin Corp. PCL | 4,920,600 | 5,850,204 | ||||
Siam Cement PCL | 1,251,000 | 9,741,259 | ||||
Siam City Cement PCL | 250,200 | 1,843,648 | ||||
Siam Makro PCL | 5,629,500 | 7,649,177 | ||||
Thai Airways International PCL | 2,182,600 | 2,808,807 | ||||
Thai Union Frozen Products PCL | 5,004,000 | 3,791,900 | ||||
TISCO Finance PCL | 3,206,000 | 2,282,819 | ||||
United Broadcasting Corp. PCL | 3,541,300 | 2,313,366 | ||||
173,223,311 | ||||||
TURKEY – 1.58% | ||||||
Adana Cimento TAS Class A | 1,204,518 | 5,652,802 | ||||
Akbank TAS | 2,466,520 | 15,433,837 | ||||
Akcansa Cimento AS | 222,166 | 981,805 | ||||
Arcelik AS | 374,051 | 2,530,732 | ||||
Dogan Yayin Holding AS | 1,096,698 | 3,259,642 | ||||
Eregli Demir ve Celik Fabrikalari TAS | 963,484 | 5,162,194 | ||||
Hurriyet Gazetecilik ve Matbaacilik AS | 855,793 | 2,275,867 | ||||
Trakya Cam Sanayii AS | 494,212 | 1,824,545 | ||||
Tupras-Turkiye Petrol Rafinerileri AS | 341,180 | 4,536,613 | ||||
Turk Hava Yollari Anonim Ortakligi | 719,264 | 4,219,382 | ||||
Turk Sise ve Cam Fabrikalari AS | 2,120,802 | 6,933,870 | ||||
Turkiye Garanti Bankasi AS | 1,823,816 | 8,487,842 | ||||
Vestel Elektronik Sanayi ve Ticaret AS | 777,581 | 3,223,449 | ||||
Yapi ve Kredi Bankasi AS | 1,692,332 | 7,611,192 | ||||
72,133,772 | ||||||
VENEZUELA – 0.17% | ||||||
Companhia Anonima Nacional Telefonos de Venezuela ADR | 369,865 | 7,730,179 | ||||
7,730,179 | ||||||
TOTAL COMMON STOCKS | 4,453,386,719 | |||||
PREFERRED STOCKS – 1.70% | ||||||
BRAZIL – 1.62% | ||||||
Petroleo Brasileiro SA ADR1 | 1,741,534 | 74,015,195 | ||||
74,015,195 | ||||||
THAILAND – 0.08% | ||||||
Siam Commercial Bank PCL | 2,793,900 | 3,832,761 | ||||
3,832,761 | ||||||
TOTAL PREFERRED STOCKS | 77,847,956 | |||||
EXCHANGE-TRADED FUNDS – 0.85% | ||||||
iShares MSCI Malaysia Index Fund1,4 | 970,065 | 6,955,366 | ||||
iShares MSCI South Korea Index Fund1,4 | 395,057 | 13,562,307 | ||||
iShares MSCI Taiwan Index Fund1,4 | 1,466,816 | 18,247,191 | ||||
TOTAL EXCHANGE-TRADED FUNDS | 38,764,864 | |||||
SHORT-TERM INVESTMENTS – 15.56% | ||||||
COMMERCIAL PAPER5 – 3.63% | ||||||
Amstel Funding Corp. | $ | 1,417,836 | 1,397,969 | |||
Amsterdam Funding Corp. | 3,752,153 | 3,750,643 | ||||
ANZ National Bank Ltd. | 1,705,524 | 1,682,303 | ||||
Barton Capital Corp. | 7,547,183 | 7,541,088 | ||||
Blue Ridge Asset Funding Corp. | 3,752,153 | 3,746,352 | ||||
Bryant Park Funding LLC | 341,105 | 340,749 | ||||
Chariot Funding LLC | 3,411,048 | 3,406,235 | ||||
Chesham Finance LLC | 1,364,419 | 1,364,129 |
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Corporate Asset Funding | $ | 1,705,524 | $ | 1,702,745 | ||
CRC Funding LLC | 852,762 | 852,163 | ||||
Delaware Funding Corp. | 6,325,516 | 6,318,499 | ||||
DEPFA Bank PLC | 1,705,524 | 1,698,734 | ||||
Edison Asset Securitization | 11,085,906 | 11,065,898 | ||||
Fairway Finance LLC | 3,251,820 | 3,248,295 | ||||
Falcon Asset Securitization Corp. | 13,151,705 | 13,136,350 | ||||
Ford Credit Auto Receivables | 7,920,454 | 7,905,901 | ||||
Ford Credit Floorplan Motown | 4,263,810 | 4,262,057 | ||||
Fortis Funding LLC | 4,775,467 | 4,753,958 | ||||
General Electric Capital Corp. | 7,504,306 | 7,484,837 | ||||
Giro Funding US Corp. | 4,112,053 | 4,107,666 | ||||
Grampian Funding LLC | 10,062,592 | 9,938,819 | ||||
Jupiter Securitization Corp. | 15,562,224 | 15,548,109 | ||||
Kitty Hawk Funding Corp. | 5,116,572 | 5,111,528 | ||||
Liberty Street Funding Corp. | 1,876,076 | 1,874,238 | ||||
Moat Funding LLC | 682,210 | 681,167 | ||||
Nordea North America Inc. | 1,705,524 | 1,688,389 | ||||
Park Avenue Receivables Corp. | 5,328,125 | 5,324,513 | ||||
Park Granada LLC | 2,387,734 | 2,384,689 | ||||
Preferred Receivables Funding Corp. | 7,247,761 | 7,237,740 | ||||
Ranger Funding Co. LLC | 1,014,343 | 1,014,129 | ||||
Santander Central Hispano | 4,263,810 | 4,221,870 | ||||
Scaldis Capital LLC | 853,717 | 845,304 | ||||
Ticonderoga Master Funding Ltd. | 5,784,728 | 5,776,256 | ||||
Tulip Funding Corp. | 5,693,926 | 5,693,927 | ||||
UBS Finance (Delaware) | 6,822,096 | 6,822,096 | ||||
Windmill Funding Corp. | 1,193,867 | 1,193,275 | ||||
Yorktown Capital LLC | 1,193,867 | 1,192,524 | ||||
166,315,144 | ||||||
FLOATING RATE NOTES5 – 5.70% | ||||||
Allstate Life Global Funding II | 1,569,082 | 1,569,135 | ||||
American Express Centurion Bank | 5,116,572 | 5,116,572 | ||||
American Express Credit Corp. | 6,822,096 | 6,824,345 | ||||
Bank of Nova Scotia | 2,217,181 | 2,216,610 |
34 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Beta Finance Inc. | $ | 12,791,430 | $ | 12,792,443 | ||
Canadian Imperial Bank of Commerce | 11,597,563 | 11,595,290 | ||||
CC USA Inc. | 6,822,096 | 6,821,555 | ||||
Commodore CDO Ltd. | 852,762 | 852,763 | ||||
Den Danske Bank NY | 10,233,144 | 10,231,544 | ||||
DEPFA Bank PLC | 3,411,048 | 3,411,048 | ||||
Dorada Finance Inc. | 2,831,170 | 2,830,820 | ||||
Fairway Finance LLC | 5,116,572 | 5,116,520 | ||||
Fifth Third Bancorp | 6,822,096 | 6,822,096 | ||||
Five Finance Inc. | 4,434,362 | 4,434,541 | ||||
General Electric Capital Corp. | 1,534,972 | 1,537,104 | ||||
General Electric Commercial Equipment Financing LLC | 1,456,786 | 1,456,786 | ||||
Hartford Life Global Funding Trust | 3,411,048 | 3,411,048 | ||||
HBOS Treasury Services PLC | 10,233,144 | 10,233,144 | ||||
K2 USA LLC | 15,349,716 | 15,349,895 | ||||
Leafs LLC | 3,581,600 | 3,581,601 | ||||
Links Finance LLC | 13,985,297 | 13,988,867 | ||||
Lothian Mortgages PLC | 6,822,096 | 6,822,096 | ||||
MetLife Funding Inc. | 5,116,572 | 5,116,572 | ||||
National City Bank (Ohio) | 8,527,620 | 8,526,997 | ||||
Nationwide Building Society | 12,620,878 | 12,623,537 | ||||
Norddeutsche Landesbank | 3,411,048 | 3,410,561 | ||||
Northern Rock PLC | 10,233,144 | 10,233,144 | ||||
Permanent Financing PLC | 9,209,830 | 9,209,830 | ||||
Sedna Finance Inc. | 1,876,076 | 1,875,689 | ||||
Sigma Finance Inc. | 17,396,345 | 17,397,186 | ||||
Tango Finance Corp. | 10,495,795 | 10,495,360 | ||||
Wachovia Asset Securitization Inc. | 10,233,144 | 10,233,144 | ||||
Wells Fargo & Co. | 1,705,524 | 1,705,770 | ||||
WhistleJacket Capital LLC | 11,938,668 | 11,937,633 |
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
White Pine Finance LLC | $ | 18,658,433 | $ | 18,657,051 | ||
Winston Funding Ltd. | 2,435,488 | 2,435,488 | ||||
260,873,785 | ||||||
MEDIUM-TERM NOTES5 – 0.07% | ||||||
CC USA Inc. | 3,411,048 | 3,411,006 | ||||
3,411,006 | ||||||
MONEY MARKET FUNDS5 – 0.47% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares4 | 19,743,472 | 19,743,472 | ||||
BlackRock Temp Cash Money Market Fund | 636,134 | 636,134 | ||||
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares | 1,287,075 | 1,287,075 | ||||
21,666,681 | ||||||
REPURCHASE AGREEMENTS5 – 2.91% | ||||||
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $76,754,188 and effective yields of 2.62% - 2.63%.6 | $ | 76,748,580 | 76,748,580 | |||
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $56,286,404 and an effective yield of 2.63%.6 | 56,282,292 | 56,282,292 | ||||
133,030,872 | ||||||
TIME DEPOSITS5 – 2.58% | ||||||
Abbey National Treasury Services PLC | 2,387,734 | 2,387,696 | ||||
Banco Bilbao Vizcaya Argentaria SA | 5,116,572 | 5,116,579 | ||||
BNP Paribas (New York) | 4,775,467 | 4,775,467 | ||||
Credit Suisse First Boston | 3,411,048 | 3,411,048 | ||||
Deutsche Bank AG | 5,680,543 | 5,680,544 | ||||
First Tennessee Bank | 8,527,620 | 8,527,620 | ||||
HBOS Treasury Services PLC | 5,594,119 | 5,594,100 | ||||
Key Bank N.A. | 20,466,288 | 20,466,288 | ||||
Natexis Banques | 5,969,334 | 5,969,334 | ||||
Norddeutsche Landesbank | 3,411,048 | 3,410,866 | ||||
Royal Bank of Scotland | 852,762 | 852,763 | ||||
Societe Generale | 341,105 | 341,105 | ||||
Toronto-Dominion Bank | 13,644,192 | 13,643,594 | ||||
UBS AG | 1,364,419 | 1,364,326 | ||||
Washington Mutual Bank | 15,690,821 | 15,690,821 | ||||
Wells Fargo Bank N.A. | 20,977,945 | 20,977,896 | ||||
118,210,047 | ||||||
U.S. GOVERNMENT AGENCY NOTES5 – 0.20% | ||||||
Federal Home Loan Mortgage Corp. | 4,088,243 | 4,080,332 |
36 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Federal National Mortgage Association | $ | 5,116,572 | $ | 5,069,318 | |||
9,149,650 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 712,657,185 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 115.37% | 5,282,656,724 | ||||||
Other Assets, Less Liabilities – (15.37%) | (703,740,586 | ) | |||||
NET ASSETS – 100.00% | $ | 4,578,916,138 | |||||
ADR – American Depositary Receipts
GDR – Global Depositary Receipts
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.93% | |||||
AIRLINES – 1.03% | |||||
Cathay Pacific Airways Ltd. | 3,590,000 | $ | 6,605,399 | ||
6,605,399 | |||||
APPAREL – 0.81% | |||||
Yue Yuen Industrial Holdings Ltd.1 | 1,795,000 | 5,178,449 | |||
5,178,449 | |||||
BANKS – 14.13% | |||||
Bank of East Asia Ltd. | 5,744,100 | 17,455,130 | |||
BOC Hong Kong Holdings Ltd. | 15,796,000 | 30,076,431 | |||
Hang Seng Bank Ltd.1 | 3,159,200 | 43,342,467 | |||
90,874,028 | |||||
CHEMICALS – 0.84% | |||||
Kingboard Chemical Holdings Co. Ltd. | 1,795,000 | 5,408,602 | |||
5,408,602 | |||||
DISTRIBUTION & WHOLESALE – 6.31% | |||||
Esprit Holdings Ltd. | 3,949,000 | 28,228,301 | |||
Li & Fung Ltd. | 7,180,000 | 12,336,216 | |||
40,564,517 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.71% | |||||
Hong Kong Exchanges & Clearing Ltd.1 | 4,308,000 | 10,992,121 | |||
10,992,121 | |||||
ELECTRIC – 11.04% | |||||
CLP Holdings Ltd. | 7,539,200 | 43,113,456 | |||
Hongkong Electric Holdings Ltd. | 6,103,000 | 27,857,753 | |||
70,971,209 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 0.90% | |||||
Johnson Electric Holdings Ltd. | 6,103,000 | 5,790,657 | |||
5,790,657 | |||||
ENGINEERING & CONSTRUCTION – 2.50% | |||||
Cheung Kong Infrastructure Holdings Ltd.1 | 2,154,000 | 6,504,132 | |||
New World Development Co. Ltd. | 9,334,800 | 9,575,197 | |||
16,079,329 | |||||
GAS – 4.98% | |||||
Hong Kong & China Gas Co. Ltd. | 15,078,663 | 31,997,315 | |||
31,997,315 | |||||
HAND & MACHINE TOOLS – 1.30% | |||||
Techtronic Industries Co. Ltd. | 3,590,000 | 8,377,580 | |||
8,377,580 | |||||
HOLDING COMPANIES – DIVERSIFIED – 20.69% | |||||
Hutchison Whampoa Ltd.1 | 9,334,800 | 84,381,426 | |||
Swire Pacific Ltd. Class A | 3,859,000 | 31,543,341 | |||
Wharf Holdings Ltd. (The) | 5,026,000 | 17,109,595 | |||
133,034,362 | |||||
LODGING – 1.01% | |||||
Shangri-La Asia Ltd.1 | 4,308,000 | 6,517,941 | |||
6,517,941 | |||||
MEDIA – 1.21% | |||||
SCMP Group Ltd. | 2,872,000 | 1,307,271 | |||
Television Broadcasts Ltd.1 | 1,436,000 | 6,499,529 | |||
7,806,800 | |||||
REAL ESTATE – 25.38% | |||||
Cheung Kong Holdings Ltd. | 6,462,000 | 61,727,111 | |||
Hang Lung Properties Ltd. | 7,898,000 | 12,253,361 | |||
Henderson Land Development Co. Ltd. | 2,872,000 | 13,477,776 | |||
Hopewell Holdings Ltd. | 2,872,000 | 7,217,607 | |||
Hysan Development Co. Ltd. | 2,872,000 | 6,020,810 | |||
Kerry Properties Ltd. | 2,154,000 | 5,137,021 | |||
Sino Land Co. Ltd.1 | 4,308,000 | 3,838,957 | |||
Sun Hung Kai Properties Ltd. | 5,744,000 | 53,579,685 | |||
163,252,328 | |||||
RETAIL – 0.59% | |||||
Giordano International Ltd. | 5,744,000 | 3,792,926 | |||
3,792,926 | |||||
SEMICONDUCTORS – 0.49% | |||||
ASM Pacific Technology Ltd.1 | 718,000 | 3,176,115 | |||
3,176,115 | |||||
TELECOMMUNICATIONS – 2.43% | |||||
Hutchinson Telecommunications International Ltd.2 | 5,744,000 | 6,260,169 | |||
PCCW Ltd.1 | 14,360,576 | 8,562,046 | |||
SmarTone Telecommunications Holdings Ltd. | 720,000 | 830,860 | |||
15,653,075 | |||||
TEXTILES – 0.20% | |||||
Texwinca Holdings Ltd. | 1,436,000 | 1,307,271 | |||
1,307,271 |
38 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
TRANSPORTATION – 2.38% | ||||||
MTR Corp. Ltd. | 5,744,083 | $ | 9,132,614 | |||
Orient Overseas International Ltd. | 1,436,000 | 6,168,108 | ||||
15,300,722 | ||||||
TOTAL COMMON STOCKS | 642,680,746 | |||||
SHORT-TERM INVESTMENTS – 16.88% | ||||||
COMMERCIAL PAPER3 – 3.96% | ||||||
Amstel Funding Corp. | $ | 217,218 | 214,174 | |||
Amsterdam Funding Corp. | 574,845 | 574,615 | ||||
ANZ National Bank Ltd. | 261,293 | 257,736 | ||||
Barton Capital Corp. | 1,156,259 | 1,155,325 | ||||
Blue Ridge Asset Funding Corp. | 574,845 | 573,956 | ||||
Bryant Park Funding LLC | 52,259 | 52,204 | ||||
Chariot Funding LLC | 522,586 | 521,849 | ||||
Chesham Finance LLC | 209,035 | 208,990 | ||||
Corporate Asset Funding | 261,293 | 260,867 | ||||
CRC Funding LLC | 130,647 | 130,555 | ||||
Delaware Funding Corp. | 969,095 | 968,020 | ||||
DEPFA Bank PLC | 261,293 | 260,253 | ||||
Edison Asset Securitization | 1,698,406 | 1,695,340 | ||||
Fairway Finance LLC | 498,192 | 497,652 | ||||
Falcon Asset Securitization Corp. | 2,014,894 | 2,012,542 | ||||
Ford Credit Auto Receivables | 1,213,445 | 1,211,216 | ||||
Ford Credit Floorplan Motown | 653,233 | 652,965 | ||||
Fortis Funding LLC | 731,621 | 728,326 | ||||
General Electric Capital Corp. | 1,149,690 | 1,146,708 | ||||
Giro Funding US Corp. | 629,983 | 629,312 | ||||
Grampian Funding LLC | 1,541,630 | 1,522,668 | ||||
Jupiter Securitization Corp. | 2,384,196 | 2,382,033 | ||||
Kitty Hawk Funding Corp. | 783,880 | 783,107 | ||||
Liberty Street Funding Corp. | 287,422 | 287,141 | ||||
Moat Funding LLC | 104,517 | 104,358 | ||||
Nordea North America Inc. | 261,293 | 258,668 | ||||
Park Avenue Receivables Corp. | 816,290 | 815,736 | ||||
Park Granada LLC | 365,810 | 365,345 | ||||
Preferred Receivables Funding Corp. | 1,110,386 | 1,108,851 | ||||
Ranger Funding Co. LLC | 155,401 | 155,369 | ||||
Santander Central Hispano | 653,233 | 646,808 |
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Scaldis Capital LLC | $ | 130,793 | $ | 129,504 | ||
Ticonderoga Master Funding Ltd. | 886,244 | 884,946 | ||||
Tulip Funding Corp. | 872,332 | 872,332 | ||||
UBS Finance (Delaware) | 1,045,173 | 1,045,173 | ||||
Windmill Funding Corp. | 182,905 | 182,815 | ||||
Yorktown Capital LLC | 182,905 | 182,700 | ||||
25,480,159 | ||||||
FLOATING RATE NOTES3 – 6.21% | ||||||
Allstate Life Global Funding II | 240,390 | 240,398 | ||||
American Express Centurion Bank | 783,880 | 783,880 | ||||
American Express Credit Corp. | 1,045,173 | 1,045,517 | ||||
Bank of Nova Scotia | 339,681 | 339,593 | ||||
Beta Finance Inc. | 1,959,699 | 1,959,855 | ||||
Canadian Imperial Bank of Commerce | 1,776,794 | 1,776,445 | ||||
CC USA Inc. | 1,045,173 | 1,045,091 | ||||
Commodore CDO Ltd. | 130,647 | 130,647 | ||||
Den Danske Bank NY | 1,567,759 | 1,567,514 | ||||
DEPFA Bank PLC | 522,586 | 522,586 | ||||
Dorada Finance Inc. | 433,747 | 433,693 | ||||
Fairway Finance LLC | 783,879 | 783,871 | ||||
Fifth Third Bancorp | 1,045,173 | 1,045,173 | ||||
Five Finance Inc. | 679,362 | 679,389 | ||||
General Electric Capital Corp. | 235,164 | 235,490 | ||||
General Electric Commercial Equipment Financing LLC | 223,185 | 223,185 | ||||
Hartford Life Global Funding Trust | 522,586 | 522,586 | ||||
HBOS Treasury Services PLC | 1,567,759 | 1,567,758 | ||||
K2 USA LLC | 2,351,638 | 2,351,667 | ||||
Leafs LLC | 548,716 | 548,716 | ||||
Links Finance LLC | 2,142,604 | 2,143,152 | ||||
Lothian Mortgages PLC | 1,045,173 | 1,045,173 | ||||
MetLife Funding Inc. | 783,880 | 783,880 | ||||
National City Bank (Ohio) | 1,306,466 | 1,306,370 | ||||
Nationwide Building Society | 1,933,569 | 1,933,976 | ||||
Norddeutsche Landesbank | 522,586 | 522,512 | ||||
Northern Rock PLC | 1,567,759 | 1,567,759 |
40 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Permanent Financing PLC | $ | 1,410,983 | $ | 1,410,983 | ||
Sedna Finance Inc. | 287,422 | 287,364 | ||||
Sigma Finance Inc. | 2,665,190 | 2,665,319 | ||||
Tango Finance Corp. | 1,607,998 | 1,607,931 | ||||
Wachovia Asset Securitization Inc. | 1,567,759 | 1,567,760 | ||||
Wells Fargo & Co. | 261,293 | 261,331 | ||||
WhistleJacket Capital LLC | 1,829,052 | 1,828,894 | ||||
White Pine Finance LLC | 2,858,547 | 2,858,334 | ||||
Winston Funding Ltd. | 373,127 | 373,127 | ||||
39,966,919 | ||||||
MEDIUM-TERM NOTES3 – 0.08% | ||||||
CC USA Inc. | 522,586 | 522,580 | ||||
522,580 | ||||||
MONEY MARKET FUNDS3 – 0.42% | ||||||
Barclays Global Investors Funds | 2,398,809 | 2,398,809 | ||||
BlackRock Temp Cash Money Market Fund | 97,458 | 97,458 | ||||
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares | 197,185 | 197,185 | ||||
2,693,452 | ||||||
REPURCHASE AGREEMENTS3 – 3.17% | ||||||
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $11,759,052 and effective yields of 2.62% - 2.63%.6 | 11,758,192 | 11,758,192 | ||||
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $8,623,304 and an effective yield of 2.63%.6 | 8,622,674 | 8,622,674 | ||||
20,380,866 | ||||||
TIME DEPOSITS3 – 2.82% | ||||||
Abbey National Treasury Services PLC | 365,810 | 365,805 | ||||
Banco Bilbao Vizcaya Argentaria SA | 783,880 | 783,881 | ||||
BNP Paribas (New York) | 731,621 | 731,621 | ||||
Credit Suisse First Boston | 522,586 | 522,586 | ||||
Deutsche Bank AG | 870,282 | 870,282 | ||||
First Tennessee Bank | 1,306,466 | 1,306,466 | ||||
HBOS Treasury Services PLC | 857,042 | 857,038 | ||||
Key Bank N.A. | 3,135,518 | 3,135,518 | ||||
Natexis Banques | 914,526 | 914,526 | ||||
Norddeutsche Landesbank | 522,586 | 522,558 |
SCHEDULESOF INVESTMENTS | 41 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Royal Bank of Scotland | $ | 130,647 | $ | 130,647 | |||
Societe Generale | 52,259 | 52,259 | |||||
Toronto-Dominion Bank | 2,090,345 | 2,090,254 | |||||
UBS AG | 209,035 | 209,020 | |||||
Washington Mutual Bank | 2,403,898 | 2,403,898 | |||||
Wells Fargo Bank N.A. | 3,213,906 | 3,213,899 | |||||
18,110,258 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.22% | |||||||
Federal Home Loan Mortgage Corp. | 626,335 | 625,123 | |||||
Federal National Mortgage Association | 783,880 | 776,640 | |||||
1,401,763 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 108,555,997 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 116.81% | 751,236,743 | ||||||
Other Assets, Less Liabilities – (16.81%) | (108,092,520 | ) | |||||
NET ASSETS – 100.00% | $ | 643,144,223 | |||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
42 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI MALAYSIA INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.88% | |||||
AGRICULTURE – 8.28% | |||||
British American Tobacco (Malaysia) Bhd | 842,800 | $ | 10,146,868 | ||
Golden Hope Plantations Bhd | 2,046,800 | 2,046,800 | |||
Highlands & Lowlands Bhd | 1,083,600 | 1,026,568 | |||
IOI Corp. Bhd | 4,394,600 | 10,292,616 | |||
Kuala Lumpur Kepong Bhd | 1,806,000 | 3,065,447 | |||
26,578,299 | |||||
AIRLINES – 1.25% | |||||
Airasia Bhd | 4,996,600 | 2,103,832 | |||
Malaysian Airline System Bhd | 1,806,000 | 1,910,558 | |||
4,014,390 | |||||
AUTO MANUFACTURERS – 2.45% | |||||
DRB-Hicom Bhd | 2,829,400 | 1,600,845 | |||
Oriental Holdings Bhd | 1,144,200 | 1,294,753 | |||
Proton Holdings Bhd | 1,745,800 | 3,836,166 | |||
Tan Chong Motor Holdings Bhd | 2,408,000 | 1,140,632 | |||
7,872,396 | |||||
AUTO PARTS & EQUIPMENT – 0.59% | |||||
UMW Holdings Bhd | 1,444,800 | 1,885,844 | |||
1,885,844 | |||||
BANKS – 25.34% | |||||
AMMB Holdings Bhd | 6,742,400 | 5,677,810 | |||
CIMB Bhd | 1,204,000 | 1,679,263 | |||
Commerce Asset Holdings Bhd | 10,595,200 | 12,993,061 | |||
Hong Leong Bank Bhd | 3,431,400 | 4,876,200 | |||
Malayan Banking Bhd | 11,739,000 | 37,997,290 | |||
Public Bank Bhd | 7,224,000 | 15,398,526 | |||
RHB Capital Bhd | 4,575,200 | 2,696,960 | |||
81,319,110 | |||||
BEVERAGES – 0.43% | |||||
Guinness Anchor Bhd | 963,200 | 1,394,105 | |||
1,394,105 | |||||
BUILDING MATERIALS – 2.25% | |||||
Jaya Tiasa Holdings Bhd | 541,800 | 456,253 | |||
Malayan Cement Bhd | 8,367,800 | 1,827,704 | |||
OYL Industries Bhd | 481,633 | 4,594,525 | |||
WTK Holdings Bhd | 240,800 | 354,863 | |||
7,233,345 | |||||
CHEMICALS – 0.49% | |||||
Malaysian Oxygen Bhd | 481,600 | 1,558,863 | |||
1,558,863 | |||||
COMMERCIAL SERVICES – 2.00% | |||||
PLUS Expressways Bhd | 8,969,800 | 6,420,488 | |||
6,420,488 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.10% | |||||
Hong Leong Credit Bhd | 1,505,000 | 1,695,105 | |||
OSK Holdings Bhd | 2,046,800 | 743,312 | |||
TA Enterprise Bhd | 4,816,000 | 1,089,937 | |||
3,528,354 | |||||
ELECTRIC – 7.28% | |||||
Malakoff Bhd | 3,852,800 | 7,452,126 | |||
Tenaga Nasional Bhd | 5,719,000 | 15,652,000 | |||
TIME Engineering Bhd1 | 1,926,400 | 261,078 | |||
23,365,204 | |||||
ELECTRONICS – 0.25% | |||||
Hong Leong Industries Bhd | 662,200 | 801,611 | |||
Hume Industries Bhd | 667 | 874 | |||
802,485 | |||||
ENGINEERING & CONSTRUCTION – 6.39% | |||||
Gamuda Bhd | 3,973,200 | 5,646,126 | |||
IJM Corp. Bhd | 2,287,600 | 2,877,560 | |||
Malaysia Airports Holdings Bhd | 1,986,600 | 826,007 | |||
Malaysian Resources Corp. Bhd1 | 3,551,800 | 696,340 | |||
MMC Corp. Bhd | 1,986,600 | 1,076,946 | |||
Road Builder (Malaysia) Holdings Bhd | 2,829,100 | 2,159,050 | |||
Transmile Group Bhd | 722,400 | 1,767,979 | |||
YTL Corp. Bhd | 3,913,088 | 5,457,728 | |||
20,507,736 | |||||
ENTERTAINMENT – 7.05% | |||||
Berjaya Sports Toto Bhd | 3,732,400 | 4,007,419 | |||
Magnum Corp. Bhd | 6,140,400 | 3,651,922 | |||
Resorts World Bhd | 3,551,800 | 9,440,310 | |||
Tanjong PLC | 1,444,800 | 5,513,053 | |||
22,612,704 | |||||
ENVIRONMENTAL CONTROL – 0.24% | |||||
Puncak Niaga Holding Bhd1 | 1,023,400 | 762,164 | |||
762,164 |
SCHEDULESOF INVESTMENTS | 43 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MALAYSIA INDEX FUND
February 28, 2005
Security | Shares | Value | ||||
FOOD – 1.88% | ||||||
Nestle (Malaysia) Bhd | 481,600 | $ | 2,940,295 | |||
PPB Group Bhd | 1,685,633 | 3,082,934 | ||||
6,023,229 | ||||||
GAS – 1.65% | ||||||
Petronas Gas Bhd | 2,829,400 | 5,286,511 | ||||
5,286,511 | ||||||
HOLDING COMPANIES – DIVERSIFIED – 4.80% | ||||||
Mulpha International Bhd1 | 6,020,000 | 990,132 | ||||
Multi-Purpose Holdings Bhd1 | 4,093,600 | 1,012,627 | ||||
Sime Darby Bhd | 8,488,200 | 13,402,421 | ||||
15,405,180 | ||||||
INSURANCE – 0.31% | ||||||
MAA Holdings Bhd | 722,400 | 1,007,558 | ||||
1,007,558 | ||||||
LODGING – 4.06% | ||||||
Genting Bhd | 2,528,400 | 13,041,221 | ||||
13,041,221 | ||||||
MEDIA – 2.86% | ||||||
Astro All Asia Networks PLC1 | 4,153,800 | 6,066,734 | ||||
New Straits Times Press Bhd1 | 842,800 | 811,749 | ||||
Star Publications (Malaysia) Bhd | 1,264,200 | 2,312,155 | ||||
9,190,638 | ||||||
OIL & GAS – 0.58% | ||||||
Petronas Dagangan Bhd | 1,806,000 | 1,844,021 | ||||
1,844,021 | ||||||
REAL ESTATE – 3.21% | ||||||
Bandar Raya Developments Bhd | 1,505,000 | 811,908 | ||||
IGB Corp. Bhd | 5,177,200 | 1,880,141 | ||||
IOI Properties Bhd | 481,750 | 988,855 | ||||
KLCC Property Holdings Bhd | 3,371,200 | 1,934,004 | ||||
MK Land Holdings Bhd | 2,167,200 | 1,134,928 | ||||
SP Setia Bhd | 3,010,000 | 3,548,632 | ||||
10,298,468 | ||||||
RETAIL – 0.34% | ||||||
Courts Mammoth Bhd | 903,000 | 406,350 | ||||
Edaran Otomobil Nasional Bhd | 541,800 | 672,973 | ||||
1,079,323 | ||||||
SEMICONDUCTORS – 1.05% | ||||||
Malaysian Pacific Industries Bhd | 602,000 | 2,281,263 | ||||
Unisem (Malaysia) Bhd | 1,784,700 | 1,075,517 | ||||
3,356,780 | ||||||
TELECOMMUNICATIONS – 9.06% | ||||||
Maxis Communications Bhd | 4,454,800 | 11,488,695 | ||||
Telekom Malaysia Bhd | 6,080,200 | 17,600,579 | ||||
29,089,274 | ||||||
TRANSPORTATION – 4.69% | ||||||
Malaysia International Shipping Corp. Bhd | 3,311,000 | 13,941,053 | ||||
Malaysian Bulk Carriers Bhd | 1,685,600 | 1,117,819 | ||||
15,058,872 | ||||||
TOTAL COMMON STOCKS | 320,536,562 | |||||
SHORT-TERM INVESTMENTS – 0.12% | ||||||
MONEY MARKET FUNDS – 0.12% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2 | 387,128 | 387,128 | ||||
387,128 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 387,128 | |||||
TOTAL INVESTMENTS IN SECURITIES – 100.00% | 320,923,690 | |||||
Other Assets, Less Liabilities – 0.00% | (1,620 | ) | ||||
NET ASSETS – 100.00% | $ | 320,922,070 | ||||
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
See notes to financial statements.
44 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.98% | |||||
BEVERAGES – 9.53% | |||||
Coca-Cola Femsa SA de CV ADR1,2 | 126,840 | $ | 3,259,788 | ||
Fomento Economico Mexicano SA de CV Class UBD | 2,299,500 | 13,827,993 | |||
Grupo Continental SA | 947,415 | 1,716,865 | |||
Grupo Modelo SA de CV Series C | 2,605,050 | 7,961,881 | |||
26,766,527 | |||||
BUILDING MATERIALS – 11.84% | |||||
Cemex SA de CV Series CPO | 4,152,435 | 33,240,445 | |||
33,240,445 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.24% | |||||
Grupo Financiero Banorte SA de CV Series O | 1,312,500 | 9,086,652 | |||
9,086,652 | |||||
ENGINEERING & CONSTRUCTION – 1.26% | |||||
Grupo Aeroportuario del Sureste SA de CV ADR | 110,775 | 3,527,076 | |||
3,527,076 | |||||
ENTERTAINMENT – 1.68% | |||||
Corporaion Interamericana de Entretenimiento SA de CV Class B1 | 1,634,850 | 4,709,217 | |||
4,709,217 | |||||
FOOD – 1.61% | |||||
Grupo Bimbo SA Series A | 1,563,975 | 4,526,211 | |||
4,526,211 | |||||
FOREST PRODUCTS & PAPER – 3.28% | |||||
Kimberly-Clark de Mexico SA de CV Class A | 2,770,845 | 9,205,548 | |||
9,205,548 | |||||
HOLDING COMPANIES – DIVERSIFIED – 5.65% | |||||
Alfa SA de CV Class A | 1,229,130 | 6,925,925 | |||
Grupo Carso SA de CV Series A1 | 1,651,860 | 8,919,232 | |||
15,845,157 | |||||
HOME BUILDERS – 1.26% | |||||
Corporacion GEO SA de CV Series B1 | 1,407,525 | 3,546,810 | |||
3,546,810 | |||||
HOUSEWARES – 0.52% | |||||
Vitro SA de CV Series A | 1,462,860 | 1,462,629 | |||
1,462,629 | |||||
MEDIA – 6.11% | |||||
Grupo Televisa SA Series CPO | 4,187,190 | 13,529,776 | |||
TV Azteca SA de CV Series CPO1 | 6,415,500 | 3,632,370 | |||
17,162,146 | |||||
METAL FABRICATE & HARDWARE – 0.00% | |||||
Hylsamex SA de CV Class B1 | 1 | 4 | |||
4 | |||||
MINING – 3.44% | |||||
Grupo Mexico SA de CV Series B1 | 1,281,083 | 7,438,118 | |||
Industrias Penoles SA de CV Series CP | 408,555 | 2,226,623 | |||
9,664,741 | |||||
REAL ESTATE – 1.54% | |||||
Consorcio Ara SA de CV1 | 1,165,546 | 4,329,389 | |||
4,329,389 | |||||
RETAIL – 7.61% | |||||
Controladora Comercial Mexicana SA de CV | 2,163,000 | 2,369,369 | |||
Grupo Sanborns SA Series B11 | 1,055,355 | 1,712,659 | |||
Organizacion Soriana SA de CV Series B | 951,510 | 3,944,412 | |||
Wal-Mart de Mexico SA de CV Series V | 3,628,800 | 13,344,942 | |||
21,371,382 | |||||
TELECOMMUNICATIONS – 41.41% | |||||
America Movil SA de CV Series L | 21,882,000 | 63,919,294 | |||
America Telecom SA de CV Series A11 | 2,143,888 | 6,496,367 | |||
Carso Global Telecom SA de CV Class A11 | 3,207,015 | 5,811,617 | |||
Telefonos de Mexico SA de CV Series L | 20,428,485 | 40,040,143 | |||
116,267,421 | |||||
TOTAL COMMON STOCKS | 280,711,355 |
SCHEDULESOF INVESTMENTS | 45 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
SHORT-TERM INVESTMENTS – 0.91% | ||||||
COMMERCIAL PAPER3 – 0.21% | ||||||
Amstel Funding Corp. | $ | 4,929 | $ | 4,860 | ||
Amsterdam Funding Corp. | 13,045 | 13,040 | ||||
ANZ National Bank Ltd. | 5,929 | 5,849 | ||||
Barton Capital Corp. | 26,239 | 26,217 | ||||
Blue Ridge Asset Funding Corp. | 13,045 | 13,025 | ||||
Bryant Park Funding LLC | 1,186 | 1,185 | ||||
Chariot Funding LLC | 11,859 | 11,842 | ||||
Chesham Finance LLC | 4,744 | 4,743 | ||||
Corporate Asset Funding | 5,929 | 5,920 | ||||
CRC Funding LLC | 2,965 | 2,963 | ||||
Delaware Funding Corp. | 21,991 | 21,967 | ||||
DEPFA Bank PLC | 5,929 | 5,906 | ||||
Edison Asset Securitization | 38,541 | 38,473 | ||||
Fairway Finance LLC | 11,305 | 11,293 | ||||
Falcon Asset Securitization Corp. | 45,723 | 45,669 | ||||
Ford Credit Auto Receivables | 27,536 | 27,485 | ||||
Ford Credit Floorplan Motown | 14,824 | 14,817 | ||||
Fortis Funding LLC | 16,602 | 16,528 | ||||
General Electric Capital Corp. | 26,089 | 26,022 | ||||
Giro Funding US Corp. | 14,296 | 14,281 | ||||
Grampian Funding LLC | 34,984 | 34,553 | ||||
Jupiter Securitization Corp. | 54,104 | 54,054 | ||||
Kitty Hawk Funding Corp. | 17,788 | 17,771 | ||||
Liberty Street Funding Corp. | 6,522 | 6,517 | ||||
Moat Funding LLC | 2,372 | 2,368 | ||||
Nordea North America Inc. | 5,929 | 5,870 | ||||
Park Avenue Receivables Corp. | 18,524 | 18,511 | ||||
Park Granada LLC | 8,301 | 8,291 | ||||
Preferred Receivables Funding Corp. | 25,198 | 25,163 | ||||
Ranger Funding Co. LLC | 3,526 | 3,526 | ||||
Santander Central Hispano | 14,824 | 14,678 | ||||
Scaldis Capital LLC | 2,968 | 2,939 | ||||
Ticonderoga Master Funding Ltd. | 20,111 | 20,082 |
46 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Tulip Funding Corp. | $ | 19,796 | $ | 19,796 | ||
UBS Finance (Delaware) | 23,718 | 23,718 | ||||
Windmill Funding Corp. | 4,151 | 4,149 | ||||
Yorktown Capital LLC | 4,151 | 4,146 | ||||
578,217 | ||||||
FLOATING RATE NOTES3 – 0.32% | ||||||
Allstate Life Global Funding II | 5,455 | 5,455 | ||||
American Express Centurion Bank | 17,788 | 17,788 | ||||
American Express Credit Corp. | 23,718 | 23,726 | ||||
Bank of Nova Scotia | 7,708 | 7,707 | ||||
Beta Finance Inc. | 44,471 | 44,475 | ||||
Canadian Imperial Bank of Commerce | 40,320 | 40,312 | ||||
CC USA Inc. | 23,718 | 23,715 | ||||
Commodore CDO Ltd. | 2,965 | 2,965 | ||||
Den Danske Bank NY | 35,577 | 35,571 | ||||
DEPFA Bank PLC | 11,859 | 11,859 | ||||
Dorada Finance Inc. | 9,843 | 9,842 | ||||
Fairway Finance LLC | 17,788 | 17,788 | ||||
Fifth Third Bancorp | 23,718 | 23,718 | ||||
Five Finance Inc. | 15,417 | 15,417 | ||||
General Electric Capital Corp. | 5,336 | 5,344 | ||||
General Electric Commercial Equipment Financing LLC | 5,065 | 5,065 | ||||
Hartford Life Global Funding Trust | 11,859 | 11,859 | ||||
HBOS Treasury Services PLC | 35,577 | 35,577 | ||||
K2 USA LLC | 53,365 | 53,365 | ||||
Leafs LLC | 12,452 | 12,452 | ||||
Links Finance LLC | 48,621 | 48,635 | ||||
Lothian Mortgages PLC | 23,718 | 23,718 | ||||
MetLife Funding Inc. | 17,788 | 17,788 | ||||
National City Bank (Ohio) | 29,647 | 29,645 | ||||
Nationwide Building Society | 43,878 | 43,887 | ||||
Norddeutsche Landesbank | 11,859 | 11,857 | ||||
Northern Rock PLC | 35,577 | 35,577 | ||||
Permanent Financing PLC | 32,019 | 32,019 |
SCHEDULESOF INVESTMENTS | 47 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Sedna Finance Inc. | $ | 6,522 | $ | 6,521 | ||
Sigma Finance Inc. | 60,480 | 60,485 | ||||
Tango Finance Corp. | 36,490 | 36,488 | ||||
Wachovia Asset Securitization Inc. | 35,577 | 35,576 | ||||
Wells Fargo & Co. | 5,929 | 5,930 | ||||
WhistleJacket Capital LLC | 41,506 | 41,502 | ||||
White Pine Finance LLC | 64,868 | 64,864 | ||||
Winston Funding Ltd. | 8,467 | 8,467 | ||||
906,959 | ||||||
MEDIUM-TERM NOTES3 – 0.00% | ||||||
CC USA Inc. | 11,859 | 11,859 | ||||
11,859 | ||||||
MONEY MARKET FUNDS3 – 0.06% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5 | 157,816 | 157,816 | ||||
BlackRock Temp Cash Money Market Fund | 2,212 | 2,212 | ||||
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares | 4,475 | 4,475 | ||||
164,503 | ||||||
REPURCHASE AGREEMENTS3 – 0.16% | ||||||
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $266,844 and effective yields of 2.62% - 2.63%.6 | 266,825 | 266,825 | ||||
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $195,686 and an effective yield of 2.63%.6 | 195,672 | 195,672 | ||||
462,497 | ||||||
TIME DEPOSITS3 – 0.15% | ||||||
Abbey National Treasury Services PLC | 8,301 | 8,301 | ||||
Banco Bilbao Vizcaya Argentaria SA | 17,788 | 17,788 | ||||
BNP Paribas (New York) | 16,602 | 16,603 | ||||
Credit Suisse First Boston | 11,859 | 11,859 | ||||
Deutsche Bank AG | 19,749 | 19,749 | ||||
First Tennessee Bank | 29,647 | 29,647 | ||||
HBOS Treasury Services PLC | 19,449 | 19,449 | ||||
Key Bank N.A. | 71,153 | 71,153 | ||||
Natexis Banques | 20,753 | 20,753 | ||||
Norddeutsche Landesbank | 11,859 | 11,858 |
48 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Royal Bank of Scotland | $ | 2,965 | $ | 2,965 | |||
Societe Generale | 1,186 | 1,186 | |||||
Toronto-Dominion Bank | 47,435 | 47,433 | |||||
UBS AG | 4,744 | 4,743 | |||||
Washington Mutual Bank | 54,550 | 54,550 | |||||
Wells Fargo Bank N.A. | 72,932 | 72,933 | |||||
410,970 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.01% | |||||||
Federal Home Loan Mortgage Corp. | 14,213 | 14,186 | |||||
Federal National Mortgage Association | 17,788 | 17,624 | |||||
31,810 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 2,566,815 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.89% | 283,278,170 | ||||||
Other Assets, Less Liabilities – (0.89%) | (2,507,936 | ) | |||||
NET ASSETS – 100.00% | $ | 280,770,234 | |||||
ADR – American Depositary Receipts
1 | Non-income earning security. |
2 | All or a portion of this security represents a security on loan. See Note 5. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 49 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.32% | |||||
AUSTRALIA – 65.70% | |||||
Alumina Ltd. | 1,867,068 | $ | 8,937,497 | ||
Amcor Ltd. | 1,410,318 | 8,038,591 | |||
AMP Ltd. | 2,979,018 | 17,311,020 | |||
Ansell Ltd. | 233,478 | 1,873,853 | |||
Aristocrat Leisure Ltd.1 | 498,456 | 4,261,681 | |||
Australia & New Zealand Banking Group Ltd. | 2,916,018 | 49,469,007 | |||
Australian Gas Light Co. Ltd. | 729,918 | 8,257,097 | |||
Australian Stock Exchange Ltd.1 | 163,674 | 2,690,904 | |||
Australian Wealth Management Ltd. Rights1,2 | 174,288 | 42,891 | |||
AXA Asia Pacific Holdings Ltd. | 1,116,486 | 3,784,597 | |||
BHP Billiton Ltd. | 5,719,140 | 86,898,263 | |||
BHP Steel Ltd.1 | 1,182,510 | 9,096,348 | |||
Boral Ltd. | 934,416 | 4,747,431 | |||
Brambles Industries Ltd.1 | 1,555,974 | 9,807,567 | |||
Centro Properties Group | 1,228,626 | 4,944,998 | |||
Coca-Cola Amatil Ltd. | 825,678 | 5,361,699 | |||
Cochlear Ltd.1 | 89,712 | 2,072,440 | |||
Coles Myer Ltd. | 1,857,114 | 14,079,278 | |||
Commonwealth Bank of Australia | 2,029,860 | 58,381,180 | |||
Commonwealth Property Office Fund1 | 2,047,122 | 1,982,631 | |||
Computershare Ltd. | 628,488 | 2,873,809 | |||
CSL Ltd. | 317,016 | 8,065,804 | |||
CSR Ltd. | 1,498,896 | 2,867,656 | |||
DB RREEF Trust | 3,907,260 | 3,939,258 | |||
Foster’s Group Ltd. | 3,217,788 | 13,308,638 | |||
Futuris Corp. Ltd. | 821,520 | 1,343,457 | |||
Gandel Retail Trust | 2,327,850 | 2,901,303 | |||
General Property Trust | 3,217,032 | 9,347,058 | |||
Harvey Norman Holdings Ltd.1 | 859,194 | 1,889,337 | |||
Iluka Resources Ltd. | 382,158 | 1,723,176 | |||
ING Industrial Fund | 1,118,880 | 1,829,739 | |||
Insurance Australia Group Ltd. | 2,553,768 | 12,974,776 | |||
Investa Property Group1 | 2,301,768 | 3,727,607 | |||
James Hardie Industries NV | 737,478 | 3,530,245 | |||
John Fairfax Holdings Ltd. | 1,463,490 | 4,925,996 | |||
Leighton Holdings Ltd.1 | 214,200 | 1,700,427 | |||
Lend Lease Corp Ltd. | 576,450 | 5,674,424 | |||
Lion Nathan Ltd. | 487,746 | 2,919,467 | |||
Macquarie Bank Ltd. | 352,926 | 13,784,379 | |||
Macquarie Goodman Group2 | 1,670,042 | 5,196,990 | |||
Macquarie Infrastructure Group | 3,113,712 | 8,997,426 | |||
Mayne Group Ltd. | 1,032,192 | 3,294,011 | |||
Mirvac Group | 1,271,214 | 4,561,373 | |||
National Australia Bank Ltd.1 | 2,473,128 | 56,542,827 | |||
Newcrest Mining Ltd. | 528,696 | 7,239,917 | |||
OneSteel Ltd. | 919,548 | 2,014,754 | |||
Orica Ltd. | 434,826 | 6,713,880 | |||
Origin Energy Ltd.1 | 1,061,844 | 5,833,178 | |||
Origin Energy Ltd. Rights2 | 180,012 | 175,770 | |||
Pacific Brands Ltd. | 790,524 | 1,631,649 | |||
PaperlinX Ltd.1 | 710,514 | 2,543,827 | |||
Patrick Corp. Ltd.1 | 896,616 | 4,363,203 | |||
Perpetual Trustees Australia Ltd. | 61,236 | 3,028,540 | |||
Publishing & Broadcasting Ltd. | 210,798 | 2,592,127 | |||
Qantas Airways Ltd. | 1,447,866 | 4,172,280 | |||
QBE Insurance Group Ltd.1 | 1,182,888 | 14,376,636 | |||
Rinker Group Ltd. | 1,510,992 | 13,674,311 | |||
Rio Tinto Ltd.1 | 500,094 | 18,770,142 | |||
Santos Ltd. | 943,362 | 6,665,102 | |||
Sonic Healthcare Ltd. | 389,466 | 3,744,141 | |||
Southcorp Ltd.1 | 1,012,158 | 3,503,267 | |||
Stockland Trust Group | 2,014,740 | 9,212,552 | |||
Suncorp-Metway Ltd. | 863,856 | 12,947,377 | |||
TABCORP Holdings Ltd. | 819,252 | 11,264,291 | |||
Telstra Corp. Ltd.1 | 3,384,612 | 14,132,958 | |||
Toll Holdings Ltd. | 388,584 | 4,007,122 | |||
Transurban Group1 | 859,194 | 4,829,064 | |||
Wesfarmers Ltd. | 601,020 | 18,655,381 | |||
Westfield Group1 | 2,292,948 | 30,671,327 | |||
Westpac Banking Corp. Ltd. | 2,848,734 | 43,216,645 | |||
WMC Resources Ltd. | 1,861,146 | 11,214,003 | |||
Woodside Petroleum Ltd.1 | 745,038 | 12,881,746 | |||
Woolworths Ltd.1 | 1,666,098 | 20,580,152 | |||
774,613,498 | |||||
HONG KONG – 20.49% | |||||
ASM Pacific Technology Ltd.1 | 252,000 | 1,114,737 | |||
Bank of East Asia Ltd. | 2,142,000 | 6,509,094 |
50 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
BOC Hong Kong Holdings Ltd.1 | 5,922,000 | $ | 11,275,806 | ||
Cathay Pacific Airways Ltd. | 1,638,000 | 3,013,828 | |||
Cheung Kong Holdings Ltd. | 2,394,000 | 22,868,261 | |||
Cheung Kong Infrastructure Holdings Ltd.1 | 756,000 | 2,282,787 | |||
CLP Holdings Ltd. | 2,898,000 | 16,572,421 | |||
Esprit Holdings Ltd. | 1,449,000 | 10,357,763 | |||
Giordano International Ltd. | 2,268,000 | 1,497,625 | |||
Hang Lung Properties Ltd. | 2,898,736 | 4,497,247 | |||
Hang Seng Bank Ltd. | 1,222,200 | 16,767,904 | |||
Henderson Land Development Co. Ltd. | 1,134,000 | 5,321,657 | |||
Hong Kong & China Gas Co. Ltd. | 5,796,836 | 12,301,037 | |||
Hong Kong Exchanges & Clearing Ltd.1 | 1,764,000 | 4,500,952 | |||
Hongkong Electric Holdings Ltd. | 2,205,000 | 10,064,942 | |||
Hopewell Holdings Ltd. | 1,008,000 | 2,533,199 | |||
Hutchinson Telecommunications International Ltd.2 | 2,142,000 | 2,334,485 | |||
Hutchison Whampoa Ltd. | 3,402,000 | 30,752,197 | |||
Hysan Development Co. Ltd. | 1,008,000 | 2,113,154 | |||
Johnson Electric Holdings Ltd. | 2,394,000 | 2,271,478 | |||
Kerry Properties Ltd. | 756,000 | 1,802,966 | |||
Kingboard Chemical Holdings Co. Ltd. | 756,000 | 2,277,941 | |||
Li & Fung Ltd. | 2,520,000 | 4,329,702 | |||
MTR Corp. Ltd. | 2,142,000 | 3,405,602 | |||
New World Development Co. Ltd. | 3,654,941 | 3,749,066 | |||
Orient Overseas International Ltd.1 | 252,000 | 1,082,426 | |||
PCCW Ltd. | 5,533,845 | 3,299,383 | |||
SCMP Group Ltd. | 1,512,000 | 688,229 | |||
Shangri-La Asia Ltd.1 | 1,764,000 | 2,668,906 | |||
Sino Land Co. Ltd.1 | 1,764,000 | 1,571,941 | |||
SmarTone Telecommunications Holdings Ltd. | 441,000 | 508,902 | |||
Sun Hung Kai Properties Ltd. | 2,142,000 | 19,980,447 | |||
Swire Pacific Ltd. Class A | 1,512,000 | 12,359,039 | |||
Techtronic Industries Co. Ltd.1 | 1,386,000 | 3,234,353 | |||
Television Broadcasts Ltd. | 378,000 | 1,710,879 | |||
Texwinca Holdings Ltd. | 1,008,000 | 917,638 | |||
Wharf Holdings Ltd. (The) | 2,016,000 | 6,862,902 | |||
Yue Yuen Industrial Holdings Ltd.1 | 756,000 | 2,181,007 | |||
241,581,903 | |||||
NEW ZEALAND – 2.90% | |||||
Auckland International Airport Ltd. | 390,989 | 2,451,939 | |||
Carter Holt Harvey Ltd.1 | 1,008,504 | 1,691,423 | |||
Contact Energy Ltd.1 | 453,222 | 2,346,475 | |||
Fisher & Paykel Appliances Holdings Ltd.1 | 383,691 | 900,915 | |||
Fisher & Paykel Healthcare Corp. Ltd.1 | 713,916 | 1,598,204 | |||
Fletcher Building Ltd.1 | 694,638 | 3,581,167 | |||
Independent Newspapers Ltd. | 163,044 | 772,796 | |||
NGC Holdings Ltd. | 259,434 | 612,941 | |||
Sky City Entertainment Group Ltd.1 | 651,924 | 2,438,715 | |||
Sky Network Television Ltd.2 | 149,688 | 758,610 | |||
Telecom Corp. of New Zealand Ltd.1 | 3,130,218 | 14,608,352 | |||
Tenon Ltd.2 | 70,453 | 238,891 | |||
Tower Ltd.2 | 419,203 | 599,138 | |||
Warehouse Group Ltd. (The) | 226,044 | 692,291 | |||
Waste Management NZ Ltd. | 163,926 | 811,642 | |||
34,103,499 | |||||
SINGAPORE – 10.23% | |||||
Allgreen Properties Ltd. | 756,000 | 516,581 | |||
Ascendas Real Estate Investment Trust1 | 1,357,000 | 1,654,012 | |||
Capitaland Ltd.1 | 1,651,000 | 2,520,533 | |||
CapitaMall Trust Management Ltd. | 1,134,000 | 1,410,126 | |||
Chartered Semiconductor Manufacturing Ltd.1,2 | 1,638,000 | 1,109,175 | |||
City Developments Ltd. | 756,000 | 3,141,371 | |||
ComfortDelGro Corp. Ltd. | 2,772,000 | 2,849,728 | |||
Creative Technology Ltd.1 | 88,200 | 1,037,040 | |||
Datacraft Asia Ltd.2 | 378,000 | 396,900 | |||
DBS Group Holdings Ltd. | 1,764,000 | 16,179,999 | |||
Fraser & Neave Ltd. | 252,830 | 2,459,118 | |||
Haw Par Corp. Ltd. | 126,397 | 400,717 | |||
Jardine Cycle & Carriage Ltd. | 126,000 | 907,507 | |||
Keppel Corp. Ltd. | 882,000 | 5,130,906 | |||
Keppel Land Ltd. | 630,000 | 969,559 | |||
Neptune Orient Lines Ltd.1 | 756,000 | 1,675,398 | |||
Oversea-Chinese Banking Corp. Ltd. | 1,638,000 | 13,713,441 | |||
Overseas Union Enterprise Ltd. | 126,000 | 585,614 |
SCHEDULESOF INVESTMENTS | 51 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Parkway Holdings Ltd. | 882,000 | $ | 912,161 | |||
SembCorp Industries Ltd. | 1,512,000 | 1,768,475 | ||||
SembCorp Logistics Ltd. | 484,000 | 488,633 | ||||
SembCorp Marine Ltd. | 882,000 | 912,161 | ||||
Singapore Airlines Ltd.1 | 882,000 | 6,515,436 | ||||
Singapore Exchange Ltd. | 1,260,000 | 1,481,486 | ||||
Singapore Land Ltd.1 | 252,000 | 884,238 | ||||
Singapore Post Ltd. | 2,016,000 | 1,110,727 | ||||
Singapore Press Holdings Ltd. | 2,520,517 | 7,075,353 | ||||
Singapore Technologies Engineering Ltd. | 2,016,000 | 2,928,844 | ||||
Singapore Telecommunications Ltd. | 10,584,871 | 17,071,847 | ||||
SMRT Corp. Ltd.1 | 1,008,000 | 564,671 | ||||
STATS ChipPAC Ltd.1,2 | 1,512,000 | 930,777 | ||||
Suntec | 1,260,000 | 1,000,585 | ||||
United Overseas Bank Ltd. | 1,890,000 | 15,823,202 | ||||
United Overseas Land Ltd. | 630,000 | 837,699 | ||||
Venture Corp. Ltd. | 363,000 | 3,217,828 | ||||
Wing Tai Holdings Ltd. | 756,333 | 423,690 | ||||
120,605,538 | ||||||
TOTAL COMMON STOCKS | 1,170,904,438 | |||||
SHORT-TERM INVESTMENTS – 12.19% | ||||||
COMMERCIAL PAPER3 – 2.85% | ||||||
Amstel Funding Corp. | $ | 286,584 | 282,568 | |||
Amsterdam Funding Corp. | 758,414 | 758,109 | ||||
ANZ National Bank Ltd. | 344,733 | 340,040 | ||||
Barton Capital Corp. | 1,525,494 | 1,524,262 | ||||
Blue Ridge Asset Funding Corp. | 758,414 | 757,241 | ||||
Bryant Park Funding LLC | 68,947 | 68,875 | ||||
Chariot Funding LLC | 689,467 | 688,494 | ||||
Chesham Finance LLC | 275,787 | 275,728 | ||||
Corporate Asset Funding | 344,733 | 344,172 | ||||
CRC Funding LLC | 172,367 | 172,246 | ||||
Delaware Funding Corp. | 1,278,561 | 1,277,143 | ||||
DEPFA Bank PLC | 344,733 | 343,361 | ||||
Edison Asset Securitization | 2,240,768 | 2,236,723 | ||||
Fairway Finance LLC | 657,283 | 656,570 | ||||
Falcon Asset Securitization Corp. | 2,658,323 | 2,655,220 | ||||
Ford Credit Auto Receivables | 1,600,942 | 1,598,001 | ||||
Ford Credit Floorplan Motown | 861,834 | 861,479 | ||||
Fortis Funding LLC | 965,254 | 960,907 | ||||
General Electric Capital Corp. | 1,516,827 | 1,512,892 | ||||
Giro Funding US Corp. | 831,159 | 830,273 | ||||
Grampian Funding LLC | 2,033,928 | 2,008,910 | ||||
Jupiter Securitization Corp. | 3,145,555 | 3,142,702 | ||||
Kitty Hawk Funding Corp. | 1,034,200 | 1,033,181 |
52 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Liberty Street Funding Corp. | $ | 379,207 | $ | 378,835 | ||
Moat Funding LLC | 137,893 | 137,683 | ||||
Nordea North America Inc. | 344,733 | 341,270 | ||||
Park Avenue Receivables Corp. | 1,076,961 | 1,076,231 | ||||
Park Granada LLC | 482,627 | 482,011 | ||||
Preferred Receivables Funding Corp. | 1,464,973 | 1,462,947 | ||||
Ranger Funding Co. LLC | 205,027 | 204,983 | ||||
Santander Central Hispano | 861,834 | 853,357 | ||||
Scaldis Capital LLC | 172,560 | 170,859 | ||||
Ticonderoga Master Funding Ltd. | 1,169,253 | 1,167,541 | ||||
Tulip Funding Corp. | 1,150,900 | 1,150,900 | ||||
UBS Finance (Delaware) | 1,378,934 | 1,378,934 | ||||
Windmill Funding Corp. | 241,313 | 241,194 | ||||
Yorktown Capital LLC | 241,313 | 241,042 | ||||
33,616,884 | ||||||
FLOATING RATE NOTES3 – 4.47% | ||||||
Allstate Life Global Funding II | 317,155 | 317,165 | ||||
American Express Centurion Bank | 1,034,200 | 1,034,200 | ||||
American Express Credit Corp. | 1,378,934 | 1,379,388 | ||||
Bank of Nova Scotia | 448,154 | 448,038 | ||||
Beta Finance Inc. | 2,585,501 | 2,585,706 | ||||
Canadian Imperial Bank of Commerce | 2,344,188 | 2,343,728 | ||||
CC USA Inc. | 1,378,934 | 1,378,825 | ||||
Commodore CDO Ltd. 2.55%, 12/12/05 | 172,367 | 172,367 | ||||
Den Danske Bank NY | 2,068,401 | 2,068,078 | ||||
DEPFA Bank PLC | 689,467 | 689,467 | ||||
Dorada Finance Inc. | 572,258 | 572,187 | ||||
Fairway Finance LLC | 1,034,200 | 1,034,191 | ||||
Fifth Third Bancorp | 1,378,934 | 1,378,934 | ||||
Five Finance Inc. | 896,307 | 896,344 | ||||
General Electric Capital Corp. | 310,260 | 310,691 | ||||
General Electric Commercial Equipment Financing LLC | 294,457 | 294,457 | ||||
Hartford Life Global Funding Trust | 689,467 | 689,467 | ||||
HBOS Treasury Services PLC | 2,068,401 | 2,068,401 |
SCHEDULESOF INVESTMENTS | 53 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
K2 USA LLC | $ | 3,102,601 | $ | 3,102,638 | ||
Leafs LLC | 723,940 | 723,940 | ||||
Links Finance LLC | 2,826,815 | 2,827,536 | ||||
Lothian Mortgages PLC | 1,378,934 | 1,378,934 | ||||
MetLife Funding Inc. | 1,034,200 | 1,034,200 | ||||
National City Bank (Ohio) | 1,723,667 | 1,723,541 | ||||
Nationwide Building Society | 2,551,028 | 2,551,566 | ||||
Norddeutsche Landesbank | 689,467 | 689,369 | ||||
Northern Rock PLC | 2,068,401 | 2,068,401 | ||||
Permanent Financing PLC | 1,861,561 | 1,861,561 | ||||
Sedna Finance Inc. | 379,207 | 379,129 | ||||
Sigma Finance Inc. | 3,516,282 | 3,516,453 | ||||
Tango Finance Corp. | 2,121,490 | 2,121,402 | ||||
Wachovia Asset Securitization Inc. | 2,068,401 | 2,068,400 | ||||
Wells Fargo & Co. | 344,733 | 344,783 | ||||
WhistleJacket Capital LLC | 2,413,134 | 2,412,925 | ||||
White Pine Finance LLC | 3,771,384 | 3,771,103 | ||||
Winston Funding Ltd. | 492,279 | 492,279 | ||||
52,729,794 | ||||||
MEDIUM-TERM NOTES3 – 0.06% | ||||||
CC USA Inc. | 689,467 | 689,458 | ||||
689,458 | ||||||
MONEY MARKET FUNDS3 – 0.34% | ||||||
Barclays Global Investors Funds | 3,664,151 | 3,664,151 | ||||
BlackRock Temp Cash Money Market Fund | 128,580 | 128,580 | ||||
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares | 260,153 | 260,153 | ||||
4,052,884 | ||||||
REPURCHASE AGREEMENTS3 – 2.28% | ||||||
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $15,514,140 and effective yields of 2.62% - 2.63%.6 | $ | 15,513,007 | 15,513,007 | |||
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $11,377,036 and an effective yield of 2.63%.6 | 11,376,205 | 11,376,205 | ||||
26,889,212 | ||||||
TIME DEPOSITS3 – 2.03% | ||||||
Abbey National Treasury Services PLC | 482,627 | 482,619 | ||||
Banco Bilbao Vizcaya Argentaria SA | 1,034,200 | 1,034,202 |
54 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
BNP Paribas (New York) | $ | 965,254 | $ | 965,254 | |||
Credit Suisse First Boston | 689,467 | 689,467 | |||||
Deutsche Bank AG | 1,148,195 | 1,148,195 | |||||
First Tennessee Bank | 1,723,667 | 1,723,667 | |||||
HBOS Treasury Services PLC | 1,130,726 | 1,130,722 | |||||
Key Bank N.A. | 4,136,802 | 4,136,802 | |||||
Natexis Banques | 1,206,567 | 1,206,567 | |||||
Norddeutsche Landesbank | 689,467 | 689,430 | |||||
Royal Bank of Scotland | 172,367 | 172,367 | |||||
Societe Generale | 68,947 | 68,947 | |||||
Toronto-Dominion Bank | 2,757,868 | 2,757,747 | |||||
UBS AG | 275,787 | 275,768 | |||||
Washington Mutual Bank | 3,171,547 | 3,171,547 | |||||
Wells Fargo Bank N.A. | 4,240,222 | 4,240,212 | |||||
23,893,513 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.16% | |||||||
Federal Home Loan Mortgage Corp. | 826,347 | 824,747 | |||||
Federal National Mortgage Association | 1,034,200 | 1,024,649 | |||||
1,849,396 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 143,721,141 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 111.51% | 1,314,625,579 | ||||||
Other Assets, Less Liabilities – (11.51%) | (135,645,324 | ) | |||||
NET ASSETS – 100.00% | $ | 1,178,980,255 | |||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 55 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.96% | |||||
AIRLINES – 4.52% | |||||
Singapore Airlines Ltd. | 1,443,000 | $ | 10,659,608 | ||
10,659,608 | |||||
BANKS – 35.49% | |||||
DBS Group Holdings Ltd. | 3,230,000 | 29,626,643 | |||
Oversea-Chinese Banking Corp. Ltd. | 2,907,000 | 24,337,591 | |||
United Overseas Bank Ltd. | 3,553,000 | 29,745,945 | |||
83,710,179 | |||||
BEVERAGES – 2.66% | |||||
Fraser & Neave Ltd. | 646,000 | 6,283,234 | |||
6,283,234 | |||||
COMPUTERS – 0.89% | |||||
Creative Technology Ltd.1 | 177,650 | 2,088,778 | |||
2,088,778 | |||||
DISTRIBUTION & WHOLESALE – 0.99% | |||||
Jardine Cycle & Carriage Ltd.1 | 323,000 | 2,326,387 | |||
2,326,387 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.93% | |||||
Singapore Exchange Ltd. | 3,876,000 | 4,557,333 | |||
4,557,333 | |||||
ELECTRONICS – 2.43% | |||||
Venture Corp. Ltd. | 646,000 | 5,726,492 | |||
5,726,492 | |||||
ENGINEERING & CONSTRUCTION – 4.39% | |||||
SembCorp Industries Ltd.1 | 3,230,000 | 3,777,894 | |||
Singapore Technologies Engineering Ltd.1 | 4,522,000 | 6,569,559 | |||
10,347,453 | |||||
HEALTH CARE – SERVICES – 0.85% | |||||
Parkway Holdings Ltd. | 1,938,000 | 2,004,272 | |||
2,004,272 | |||||
HOLDING COMPANIES – DIVERSIFIED – 5.21% | |||||
Haw Par Corp. Ltd. | 323,000 | 1,024,008 | |||
Keppel Corp. Ltd.1 | 1,938,000 | 11,274,031 | |||
12,298,039 | |||||
LODGING – 0.64% | |||||
Overseas Union Enterprise Ltd. | 323,000 | 1,501,216 | |||
1,501,216 | |||||
MEDIA – 4.62% | |||||
Singapore Press Holdings Ltd. | 3,884,000 | 10,902,792 | |||
10,902,792 | |||||
REAL ESTATE – 8.90% | |||||
Allgreen Properties Ltd. | 2,261,000 | 1,544,960 | |||
Capitaland Ltd.1 | 3,561,000 | 5,436,474 | |||
City Developments Ltd. | 1,615,000 | 6,710,733 | |||
Keppel Land Ltd. | 1,292,000 | 1,988,365 | |||
Singapore Land Ltd.1 | 646,000 | 2,266,736 | |||
United Overseas Land Ltd. | 1,615,000 | 2,147,434 | |||
Wing Tai Holdings Ltd. | 1,606,000 | 899,665 | |||
20,994,367 | |||||
REAL ESTATE INVESTMENT TRUSTS – 3.48% | |||||
Ascendas Real Estate Investment Trust1 | 2,584,000 | 3,149,571 | |||
CapitaMall Trust Management Ltd. | 2,261,000 | 2,811,548 | |||
Suntec | 2,834,000 | 2,250,522 | |||
8,211,641 | |||||
SEMICONDUCTORS – 1.77% | |||||
Chartered Semiconductor Manufacturing Ltd.1,2 | 3,230,000 | 2,187,202 | |||
STATS ChipPAC Ltd.2 | 3,230,000 | 1,988,365 | |||
4,175,567 | |||||
SHIPBUILDING – 0.99% | |||||
SembCorp Marine Ltd.1 | 2,261,000 | 2,338,318 | |||
2,338,318 | |||||
TELECOMMUNICATIONS – 13.91% | |||||
Datacraft Asia Ltd.1,2 | 969,000 | 1,017,450 | |||
Singapore Telecommunications Ltd. | 19,711,650 | 31,792,005 | |||
32,809,455 | |||||
TRANSPORTATION – 6.29% | |||||
ComfortDelGro Corp. Ltd. | 5,814,000 | 5,977,026 | |||
Neptune Orient Lines Ltd. | 1,615,000 | 3,579,058 | |||
SembCorp Logistics Ltd.1 | 969,000 | 978,276 | |||
Singapore Post Ltd. | 4,522,000 | 2,491,422 | |||
SMRT Corp. Ltd.1 | 3,238,000 | 1,813,894 | |||
14,839,676 | |||||
TOTAL COMMON STOCKS | 235,774,807 |
56 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
SHORT-TERM INVESTMENTS – 11.07% | ||||||
COMMERCIAL PAPER3 – 2.60% | ||||||
Amstel Funding Corp. | $ | 52,219 | $ | 51,488 | ||
Amsterdam Funding Corp. | 138,193 | 138,138 | ||||
ANZ National Bank Ltd. | 62,815 | 61,960 | ||||
Barton Capital Corp. | 277,965 | 277,741 | ||||
Blue Ridge Asset Funding Corp. | 138,193 | 137,979 | ||||
Bryant Park Funding LLC | 12,563 | 12,550 | ||||
Chariot Funding LLC | 125,630 | 125,453 | ||||
Chesham Finance LLC | 50,252 | 50,241 | ||||
Corporate Asset Funding | 62,815 | 62,713 | ||||
CRC Funding LLC | 31,407 | 31,385 | ||||
Delaware Funding Corp. | 232,970 | 232,712 | ||||
DEPFA Bank PLC | 62,815 | 62,565 | ||||
Edison Asset Securitization | 408,297 | 407,560 | ||||
Fairway Finance LLC | 119,765 | 119,636 | ||||
Falcon Asset Securitization Corp. | 484,381 | 483,815 | ||||
Ford Credit Auto Receivables | 291,712 | 291,176 | ||||
Ford Credit Floorplan Motown | 157,037 | 156,972 | ||||
Fortis Funding LLC | 175,882 | 175,090 | ||||
General Electric Capital Corp. | 276,386 | 275,669 | ||||
Giro Funding US Corp. | 151,448 | 151,286 | ||||
Grampian Funding LLC | 370,608 | 366,049 | ||||
Jupiter Securitization Corp. | 573,161 | 572,641 | ||||
Kitty Hawk Funding Corp. | 188,445 | 188,259 | ||||
Liberty Street Funding Corp. | 69,096 | 69,029 | ||||
Moat Funding LLC | 25,126 | 25,088 | ||||
Nordea North America Inc. | 62,815 | 62,184 | ||||
Park Avenue Receivables Corp. | 196,236 | 196,103 | ||||
Park Granada LLC | 87,941 | 87,828 | ||||
Preferred Receivables Funding Corp. | 266,937 | 266,567 | ||||
Ranger Funding Co. LLC | 37,359 | 37,351 | ||||
Santander Central Hispano | 157,037 | 155,493 | ||||
Scaldis Capital LLC | 31,443 | 31,133 | ||||
Ticonderoga Master Funding Ltd. | 213,053 | 212,741 |
SCHEDULESOF INVESTMENTS | 57 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Tulip Funding Corp. | $ | 209,709 | $ | 209,709 | ||
UBS Finance (Delaware) | 251,260 | 251,260 | ||||
Windmill Funding Corp. | 43,970 | 43,949 | ||||
Yorktown Capital LLC | 43,970 | 43,921 | ||||
6,125,434 | ||||||
FLOATING RATE NOTES3 – 4.07% | ||||||
Allstate Life Global Funding II | 57,790 | 57,792 | ||||
American Express Centurion Bank | 188,445 | 188,445 | ||||
American Express Credit Corp. | 251,260 | 251,342 | ||||
Bank of Nova Scotia | 81,659 | 81,638 | ||||
Beta Finance Inc. | 471,112 | 471,149 | ||||
Canadian Imperial Bank of Commerce | 427,141 | 427,058 | ||||
CC USA Inc. | 251,260 | 251,239 | ||||
Commodore CDO Ltd. | 31,407 | 31,407 | ||||
Den Danske Bank NY | 376,889 | 376,831 | ||||
DEPFA Bank PLC | 125,630 | 125,630 | ||||
Dorada Finance Inc. | 104,273 | 104,260 | ||||
Fairway Finance LLC | 188,445 | 188,444 | ||||
Fifth Third Bancorp | 251,260 | 251,260 | ||||
Five Finance Inc. | 163,319 | 163,325 | ||||
General Electric Capital Corp. | 56,533 | 56,612 | ||||
General Electric Commercial Equipment Financing LLC | 53,654 | 53,654 | ||||
Hartford Life Global Funding Trust | 125,630 | 125,630 | ||||
HBOS Treasury Services PLC | 376,889 | 376,890 | ||||
K2 USA LLC | 565,334 | 565,341 | ||||
Leafs LLC | 131,911 | 131,911 | ||||
Links Finance LLC | 515,082 | 515,214 | ||||
Lothian Mortgages PLC | 251,260 | 251,260 | ||||
MetLife Funding Inc. | 188,445 | 188,445 | ||||
National City Bank (Ohio) | 314,075 | 314,051 | ||||
Nationwide Building Society | 464,830 | 464,929 | ||||
Norddeutsche Landesbank | 125,630 | 125,612 | ||||
Northern Rock PLC | 376,889 | 376,890 | ||||
Permanent Financing PLC | 339,201 | 339,200 | ||||
Sedna Finance Inc. | 69,096 | 69,082 |
58 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Sigma Finance Inc. | $ | 640,712 | $ | 640,742 | ||
Tango Finance Corp. | 386,563 | 386,548 | ||||
Wachovia Asset Securitization Inc. | 376,889 | 376,890 | ||||
Wells Fargo & Co. | 62,815 | 62,824 | ||||
WhistleJacket Capital LLC | 439,704 | 439,667 | ||||
White Pine Finance LLC | 687,195 | 687,143 | ||||
Winston Funding Ltd. | 89,700 | 89,700 | ||||
9,608,055 | ||||||
MEDIUM-TERM NOTES3 – 0.05% | ||||||
CC USA Inc. | 125,630 | 125,628 | ||||
125,628 | ||||||
MONEY MARKET FUNDS3 – 0.28% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5 | 579,065 | 579,065 | ||||
BlackRock Temp Cash Money Market Fund | 23,429 | 23,429 | ||||
Short-Term Investment Co. – Prime Money Market Portfolio, Institutional Shares | 47,403 | 47,403 | ||||
649,897 | ||||||
REPURCHASE AGREEMENTS3 – 2.08% | ||||||
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $2,826,877 and effective yields of 2.62% - - 2.63%.6 | 2,826,673 | 2,826,673 | ||||
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $ 2,073,044 and an effective yield of 2.63%.6 | 2,072,892 | 2,072,892 | ||||
4,899,565 | ||||||
TIME DEPOSITS3 – 1.85% | ||||||
Abbey National Treasury Services PLC | 87,941 | 87,940 | ||||
Banco Bilbao Vizcaya Argentaria SA | 188,445 | 188,445 | ||||
BNP Paribas (New York) | 175,882 | 175,882 | ||||
Credit Suisse First Boston | 125,630 | 125,630 | ||||
Deutsche Bank AG | 209,216 | 209,216 | ||||
First Tennessee Bank | 314,075 | 314,075 | ||||
HBOS Treasury Services PLC | 206,033 | 206,033 | ||||
Key Bank N.A. | 753,779 | 753,780 | ||||
Natexis Banques | 219,852 | 219,852 | ||||
Norddeutsche Landesbank | 125,630 | 125,623 | ||||
Royal Bank of Scotland | 31,407 | 31,407 | ||||
Societe Generale | 12,563 | 12,563 | ||||
Toronto-Dominion Bank | 502,519 | 502,498 | ||||
UBS AG | 50,252 | 50,248 |
SCHEDULESOF INVESTMENTS | 59 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Washington Mutual Bank | $ | 577,898 | $ | 577,898 | |||
Wells Fargo Bank N.A. | 772,623 | 772,622 | |||||
4,353,712 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.14% | |||||||
Federal Home Loan Mortgage Corp. | 150,571 | 150,281 | |||||
Federal National Mortgage Association | 188,445 | 186,704 | |||||
336,985 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 26,099,276 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 111.03% | 261,874,083 | ||||||
Other Assets, Less Liabilities – (11.03%) | (26,018,130 | ) | |||||
NET ASSETS – 100.00% | $ | 235,855,953 | |||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
60 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.95% | |||||
BANKS – 16.62% | |||||
FirstRand Ltd. | 3,164,832 | $ | 7,640,314 | ||
Nedcor Ltd. | 205,017 | 2,830,944 | |||
Standard Bank Group Ltd. | 1,295,675 | 14,369,683 | |||
24,840,941 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.08% | |||||
African Bank Investments Ltd. | 481,222 | 1,444,899 | |||
Alexander Forbes Ltd. | 326,932 | 657,243 | |||
Investec Ltd. | 34,077 | 1,011,423 | |||
3,113,565 | |||||
ELECTRONICS – 0.76% | |||||
Reunert Ltd. | 184,979 | 1,136,358 | |||
1,136,358 | |||||
ENGINEERING & CONSTRUCTION – 1.20% | |||||
Aveng Ltd. | 437,895 | 906,764 | |||
Murray & Roberts Holdings Ltd. | 337,514 | 888,187 | |||
1,794,951 | |||||
FOOD – 3.82% | |||||
Metoz Holdings Ltd. | 1,869,194 | 870,885 | |||
Shoprite Holdings Ltd. | 411,218 | 1,004,087 | |||
SPAR Group Ltd. (The)1 | 172,050 | 746,682 | |||
Tiger Brands Ltd. | 175,861 | 3,089,300 | |||
5,710,954 | |||||
FOREST PRODUCTS & PAPER – 2.05% | |||||
Sappi Ltd. | 226,366 | 3,067,145 | |||
3,067,145 | |||||
HEALTH CARE – SERVICES – 0.69% | |||||
Network Healthcare Holdings Ltd.1 | 1,185,184 | 1,032,809 | |||
1,032,809 | |||||
HOLDING COMPANIES – DIVERSIFIED – 8.56% | |||||
Anglovaal Industries Ltd. | 332,149 | 874,069 | |||
Barloworld Ltd. | 224,816 | 4,112,216 | |||
Bidvest Group Ltd. | 264,106 | 3,445,881 | |||
Bidvest Group Ltd. Warrants (Expiring 12/8/06)1 | 17,071 | 57,443 | |||
Imperial Holdings Ltd.1 | 206,016 | 3,768,336 | |||
Tongaat-Hulett Group Ltd. | 51,171 | 529,984 | |||
12,787,929 | |||||
HOME FURNISHINGS – 1.43% | |||||
Steinhoff International Holdings Ltd. | 906,648 | 2,132,443 | |||
2,132,443 | |||||
INSURANCE – 13.66% | |||||
Liberty Group Ltd. | 134,039 | 1,508,070 | |||
New Africa Capital Ltd. | 650,831 | 1,269,081 | |||
Old Mutual PLC | 4,101,720 | 11,169,039 | |||
Sanlam Ltd. | 2,803,844 | 6,459,188 | |||
20,405,378 | |||||
IRON & STEEL – 1.55% | |||||
Iscor Ltd. | 209,087 | 2,312,746 | |||
2,312,746 | |||||
MEDIA – 2.87% | |||||
Naspers Ltd. | 319,510 | 4,292,810 | |||
4,292,810 | |||||
MINING – 14.00% | |||||
Anglo American Platinum Corp. Ltd. | 68,154 | 2,704,967 | |||
AngloGold Ashanti Ltd. | 139,157 | 4,994,721 | |||
Gold Fields Ltd. | 361,897 | 4,312,126 | |||
Harmony Gold Mining Co. Ltd. | 353,350 | 3,048,723 | |||
Impala Platinum Holdings Ltd. | 66,378 | 5,853,126 | |||
20,913,663 | |||||
OIL & GAS – 10.15% | |||||
Sasol Ltd. | 601,768 | 15,160,892 | |||
15,160,892 | |||||
PACKAGING & CONTAINERS – 1.62% | |||||
Consol Ltd.1 | 332,149 | 664,865 | |||
Nampak Ltd. | 631,590 | 1,754,704 | |||
2,419,569 | |||||
RETAIL – 7.62% | |||||
Edgars Consolidated Stores Ltd. | 48,674 | 2,494,574 | |||
Foschini Ltd. | 218,596 | 1,489,609 | |||
JD Group Ltd. | 173,197 | 1,942,659 | |||
Massmart Holdings Ltd. | 194,102 | 1,523,997 | |||
Pick’n Pay Stores Ltd. | 221,001 | 880,945 | |||
Truworths International Ltd. | 469,012 | 1,408,238 | |||
Woolworths Holdings Ltd. | 916,897 | 1,650,242 | |||
11,390,264 |
SCHEDULESOF INVESTMENTS | 61 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 28, 2005
Security | Shares | Value | ||||
TELECOMMUNICATIONS – 11.27% | ||||||
MTN Group Ltd. | 1,419,368 | $ | 11,705,093 | |||
Telkom South Africa Ltd. | 262,922 | 5,140,432 | ||||
16,845,525 | ||||||
TOTAL COMMON STOCKS | 149,357,942 | |||||
SHORT-TERM INVESTMENTS – 0.06% | ||||||
MONEY MARKET FUNDS – 0.06% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares2 | 86,044 | 86,044 | ||||
86,044 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 86,044 | |||||
TOTAL INVESTMENTS IN SECURITIES – 100.01% | 149,443,986 | |||||
Other Assets, Less Liabilities – (0.01%) | (18,878 | ) | ||||
NET ASSETS – 100.00% | $ | 149,425,108 | ||||
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
See notes to financial statements.
62 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 96.89% | |||||
ADVERTISING – 0.58% | |||||
Cheil Communications Inc. | 22,500 | $ | 3,722,057 | ||
3,722,057 | |||||
AGRICULTURE – 1.32% | |||||
KT&G Corp. | 270,000 | 8,490,313 | |||
8,490,313 | |||||
AIRLINES – 0.36% | |||||
Korean Air Co. Ltd. | 112,500 | 2,302,534 | |||
2,302,534 | |||||
AUTO MANUFACTURERS – 5.33% | |||||
Hyundai Motor Co. Ltd. | 468,750 | 26,965,350 | |||
Kia Motors Corp. | 510,000 | 7,195,231 | |||
34,160,581 | |||||
AUTO PARTS & EQUIPMENT – 2.88% | |||||
Hankook Tire Co. Ltd. | 498,750 | 5,549,926 | |||
Hyundai Mobis Co. | 191,256 | 12,883,415 | |||
18,433,341 | |||||
BANKS – 8.52% | |||||
Hana Bank | 352,503 | 10,069,013 | |||
Kookmin Bank | 873,759 | 40,280,594 | |||
Korea Exchange Bank1 | 472,500 | 4,229,732 | |||
54,579,339 | |||||
BEVERAGES – 0.41% | |||||
Hite Brewery Co. Ltd. | 30,000 | 2,599,106 | |||
2,599,106 | |||||
CHEMICALS – 2.73% | |||||
Hanwha Chemical Corp. | 123,750 | 1,653,689 | |||
Honam Petrochemical Corp. | 56,250 | 3,084,948 | |||
Kumgang Korea Chemical Co. Ltd. | 18,750 | 2,887,481 | |||
LG Chem Ltd. | 142,500 | 6,654,247 | |||
LG Petrochemical Co. Ltd. | 105,000 | 2,858,420 | |||
Samsung Fine Chemicals Co. Ltd. | 18,750 | 357,675 | |||
17,496,460 | |||||
COMMERCIAL SERVICES – 0.73% | |||||
S1 Corp. | 116,250 | 4,683,495 | |||
4,683,495 | |||||
COMPUTERS – 0.00% | |||||
Gateway Inc.1 | 7 | 24 | |||
24 | |||||
COSMETICS & PERSONAL CARE – 0.54% | |||||
Amorepacific Corp. | 15,000 | 3,457,526 | |||
3,457,526 | |||||
DISTRIBUTION & WHOLESALE – 1.23% | |||||
Hyosung Corp. | 5 | 65 | |||
Samsung Corp. | 495,000 | 7,868,853 | |||
7,868,918 | |||||
DIVERSIFIED FINANCIAL SERVICES – 5.58% | |||||
Daewoo Securities Co. Ltd.1 | 213,750 | 1,507,824 | |||
Daishin Securities Co. Ltd. | 120,000 | 2,086,438 | |||
Dongwon Financial Holding Co. Ltd. | 5 | 76 | |||
Hyundai Securities Co. Ltd.1 | 495,000 | 3,737,705 | |||
LG Investment & Securities Co. Ltd.1 | 277,500 | 3,253,353 | |||
Samsung Securities Co. | 157,500 | 4,561,475 | |||
Shinhan Financial Group Ltd. | 697,500 | 20,616,617 | |||
35,763,488 | |||||
ELECTRIC – 2.96% | |||||
Korea Electric Power Corp. | 693,750 | 18,954,918 | |||
18,954,918 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 27.58% | |||||
LG Cable Ltd. | 67,500 | 1,599,478 | |||
LG Electronics Inc. | 330,006 | 25,902,110 | |||
Samsung Electronics Co. Ltd. | 285,000 | 149,225,037 | |||
176,726,625 | |||||
ELECTRONICS – 5.77% | |||||
Daeduck Electronics Co. Ltd. | 787,541 | 7,018,622 | |||
Samsung Electro-Mechanics Co. Ltd. | 375,000 | 10,618,480 | |||
Samsung SDI Co. Ltd. | 157,500 | 19,325,633 | |||
36,962,735 | |||||
ENGINEERING & CONSTRUCTION – 1.44% | |||||
Daelim Industrial Co. Ltd. | 93,750 | 5,868,107 | |||
Daewoo Engineering & Construction Co. Ltd. | 123,750 | 927,049 | |||
LG Engineering & Construction Co. Ltd. | 86,250 | 2,403,689 | |||
9,198,845 | |||||
FOOD – 1.07% | |||||
Cheil Jedang Corp. | 52,500 | 3,698,212 | |||
Nong Shim Co. Ltd. | 11,252 | 3,186,110 | |||
6,884,322 |
SCHEDULESOF INVESTMENTS | 63 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2005
Security | Shares | Value | |||
HOLDING COMPANIES – DIVERSIFIED – 0.00% | |||||
GS Holdings Corp. | 2 | $ | 53 | ||
LG Corp. | 3 | 83 | |||
136 | |||||
HOME BUILDERS – 0.09% | |||||
Hyundai Development Co. | 33,750 | 598,547 | |||
598,547 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.18% | |||||
LG Household & Health Care Ltd. | 33,750 | 1,136,736 | |||
1,136,736 | |||||
INSURANCE – 1.48% | |||||
Samsung Fire & Marine Insurance Co. Ltd. | 116,250 | 9,470,939 | |||
9,470,939 | |||||
INTERNET – 1.62% | |||||
Daum Communications Corp.1 | 52,875 | 1,239,791 | |||
NCsoft Corp.1 | 60,004 | 4,322,196 | |||
NHN Corp.1 | 54,000 | 4,828,614 | |||
10,390,601 | |||||
IRON & STEEL – 7.47% | |||||
POSCO | 217,500 | 47,865,127 | |||
47,865,127 | |||||
LODGING – 0.77% | |||||
Kangwon Land Inc.1 | 386,252 | 4,950,473 | |||
4,950,473 | |||||
MACHINERY – DIVERSIFIED – 0.34% | |||||
Daewoo Heavy Industries & Machinery Ltd.1 | 240,000 | 2,174,665 | |||
2,174,665 | |||||
MANUFACTURING – 0.36% | |||||
Cheil Industries Inc. | 131,250 | 2,334,203 | |||
2,334,203 | |||||
MINING – 0.06% | |||||
Poongsan Corp. | 26,250 | 389,903 | |||
389,903 | |||||
OIL & GAS – 4.46% | |||||
SK Corp. | 281,250 | 17,688,152 | |||
S-Oil Corp. | 150,000 | 10,879,285 | |||
28,567,437 | |||||
PHARMACEUTICALS – 0.23% | |||||
Dong-A Pharmaceutical Co. Ltd. | 9 | 300 | |||
YuHan Corp. | 15,008 | 1,498,563 | |||
1,498,863 | |||||
RETAIL – 2.09% | |||||
Hyundai Department Store Co. Ltd. | 52,500 | 2,477,645 | |||
Shinsegae Department Store Co. Ltd. | 33,750 | 10,897,914 | |||
13,375,559 | |||||
SHIPBUILDING – 3.00% | |||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd. | 352,500 | 6,514,158 | |||
Hyundai Heavy Industries Co. Ltd. | 165,000 | 8,229,508 | |||
Samsung Heavy Industries Co. Ltd. | 558,750 | 4,496,647 | |||
19,240,313 | |||||
TELECOMMUNICATIONS – 5.06% | |||||
KT Corp. | 229,380 | 9,480,584 | |||
KT Corp. ADR | 149,250 | 3,431,258 | |||
SK Telecom Co. Ltd. | 103,780 | 18,662,871 | |||
SK Telecom Co. Ltd. ADR | 41,625 | 880,785 | |||
32,455,498 | |||||
TRANSPORTATION – 0.65% | |||||
Hanjin Shipping Co. Ltd. | 138,750 | 4,135,619 | |||
4,135,619 | |||||
TOTAL COMMON STOCKS | 620,869,246 | ||||
PREFERRED STOCKS – 1.44% | |||||
AUTO MANUFACTURERS – 0.49% | |||||
Hyundai Motor Co. Ltd. | 86,250 | 3,162,071 | |||
3,162,071 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 0.95% | |||||
LG Electronics Inc. | 138,750 | 6,065,574 | |||
6,065,574 | |||||
TOTAL PREFERRED STOCKS | 9,227,645 |
64 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2005
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.29% | |||||
MONEY MARKET FUNDS – 0.29% | |||||
Barclays Global Investors Funds | 1,890,374 | $ | 1,890,374 | ||
1,890,374 | |||||
TOTAL SHORT-TERM INVESTMENTS | 1,890,374 | ||||
TOTAL INVESTMENTS IN SECURITIES – 98.62% | 631,987,265 | ||||
Other Assets, Less Liabilities – 1.38% | 8,841,289 | ||||
NET ASSETS – 100.00% | $ | 640,828,554 | |||
ADR – American Depositary Receipts
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 65 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.82% | |||||
AIRLINES – 0.47% | |||||
China Airlines | 2,795,196 | $ | 1,682,336 | ||
EVA Airways Corp.1 | 4,165,274 | 2,212,006 | |||
3,894,342 | |||||
APPAREL – 0.56% | |||||
Pou Chen Corp. | 5,440,899 | 4,728,171 | |||
4,728,171 | |||||
AUTO MANUFACTURERS – 0.82% | |||||
China Motor Co. Ltd. | 2,720,330 | 3,528,462 | |||
Yulon Motor Co. Ltd. | 2,742,835 | 3,372,266 | |||
6,900,728 | |||||
AUTO PARTS & EQUIPMENT– 0.21% | |||||
Cheng Shin Rubber Industry Co. Ltd. | 1,432,661 | 1,793,708 | |||
1,793,708 | |||||
BANKS – 11.85% | |||||
Chang Hwa Commercial Bank Ltd.1 | 13,600,446 | 9,411,316 | |||
Chinatrust Financial Holding Co. Ltd. | 17,680,123 | 21,111,444 | |||
E.Sun Financial Holding Co. Ltd. | 5,440,071 | 4,429,797 | |||
First Financial Holding Co. Ltd.1 | 14,960,050 | 12,952,216 | |||
Hua Nan Financial Holdings Co. Ltd. | 12,240,379 | 10,558,164 | |||
International Bank of Taipei | 6,984,756 | 5,260,486 | |||
Mega Financial Holding Co. Ltd. | 35,360,136 | 23,899,673 | |||
Taishin Financial Holdings Co. Ltd. | 12,240,311 | 11,582,399 | |||
99,205,495 | |||||
BUILDING MATERIALS – 1.10% | |||||
Asia Cement Corp. | 4,080,453 | 2,863,015 | |||
Taiwan Cement Corp. | 5,543,513 | 3,604,086 | |||
Taiwan Glass Industrial Corp. | 2,720,492 | 2,705,607 | |||
9,172,708 | |||||
CHEMICALS – 9.13% | |||||
China Synthetic Rubber Corp.1 | 236 | 90 | |||
Eternal Chemical Co. Ltd. | 1,360,100 | 949,925 | |||
Formosa Chemicals & Fibre Co. | 8,160,001 | 16,283,233 | |||
Formosa Plastic Co. | 14,960,273 | 27,445,625 | |||
Nan Ya Plastic Corp. | 19,040,571 | 29,048,055 | |||
Oriental Union Chemical Corp. | 1,556,802 | 1,698,603 | |||
Taiwan Styrene Monomer Corp. | 1,360,600 | 1,002,824 | |||
76,428,355 | |||||
COMMERCIAL SERVICES – 0.24% | |||||
Taiwan Secom Co. Ltd. | 1,360,486 | 2,014,237 | |||
2,014,237 | |||||
COMPUTERS – 7.90% | |||||
Acer Inc. | 6,800,786 | 11,053,740 | |||
Advantech Co. Ltd. | 1,360,792 | 3,306,720 | |||
Arima Computer Corp.1 | 2,720,600 | 796,828 | |||
Benq Corp. | 6,820,019 | 7,616,822 | |||
CMC Magnetics Corp. | 9,520,400 | 4,443,057 | |||
Compal Electronics Inc. | 10,880,914 | 10,471,173 | |||
Inventec Co. Ltd. | 5,440,525 | 2,801,687 | |||
Lite-On Technology Corp. | 8,160,894 | 8,851,694 | |||
Prodisc Technology Inc. | 1,595,902 | 654,900 | |||
Quanta Computer Inc. | 6,800,125 | 12,146,989 | |||
Ritek Corp. | 8,160,389 | 2,941,627 | |||
Systex Corp. | 2,796,887 | 1,044,219 | |||
66,129,456 | |||||
DISTRIBUTION & WHOLESALE – 0.00% | |||||
Aurora Corp.1 | 610 | 357 | |||
357 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.65% | |||||
Fubon Financial Holding Co. Ltd. | 14,200,000 | 14,944,963 | |||
Polaris Securities Co. Ltd. | 2,765,666 | 1,513,239 | |||
SinoPac Holdings Co. | 12,240,641 | 7,564,220 | |||
Yuanta Core Pacific Securities Co. Ltd. | 8,160,788 | 6,566,453 | |||
30,588,875 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 2.23% | |||||
Delta Electronics Inc. | 4,193,224 | 7,355,349 | |||
Pacific Electric Wire & Cable Co. Ltd.1,2 | 986 | — | |||
Phoenixtec Power Co. Ltd. | 1,362,438 | 1,574,236 | |||
Tatung Co. Ltd.1 | 13,600,120 | 5,077,612 | |||
Walsin Lihwa Corp.1 | 9,520,779 | 4,657,736 | |||
18,664,933 | |||||
ELECTRONICS – 16.16% | |||||
Asustek Computer Inc. | 8,160,171 | 23,374,806 | |||
AU Optronics Corp. | 14,960,740 | 23,401,737 | |||
Chi Mei Optoelectronics Corp. | 9,520,675 | 14,831,048 | |||
Chunghwa Picture Tubes Ltd.1 | 13,600,873 | 6,019,054 | |||
Compeq Manufacturing Co. Ltd.1 | 2,720,200 | 844,864 |
66 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
Elitegroup Computer Systems Co. Ltd. | 1,397,215 | $ | 917,386 | ||
Gigabyte Technology Co. Ltd. | 1,360,921 | 1,471,739 | |||
Hon Hai Precision Industry Co. Ltd. | 9,520,773 | 44,279,102 | |||
Micro-Star International Co. Ltd. | 1,435,113 | 983,840 | |||
Optimax Technology Corp. | 1,360,000 | 3,830,061 | |||
Picvue Electronics Ltd.1 | 1,266,040 | 162,992 | |||
Quanta Display Inc.1 | 8,160,000 | 4,753,653 | |||
Synnex Technology International Corp. | 2,720,436 | 4,071,460 | |||
WU’S Printed Circuit Co. Ltd. | 1,382,504 | 660,772 | |||
Ya Hsin Industrial Co. Ltd. | 2,720,347 | 2,591,640 | |||
Yageo Corp.1 | 8,160,100 | 3,138,500 | |||
135,332,654 | |||||
ENGINEERING & CONSTRUCTION – 0.27% | |||||
BES Engineering Corp.1 | 4,124,293 | 809,726 | |||
Continental Engineering Corp. | 2,750,262 | 1,407,440 | |||
2,217,166 | |||||
FOOD – 0.66% | |||||
Uni-President Enterprises Co. | 10,880,637 | 5,498,101 | |||
5,498,101 | |||||
FOREST PRODUCTS & PAPER – 0.23% | |||||
Yuen Foong Yu Paper Manufacturing Co. Ltd. | 3,592,320 | 1,896,171 | |||
1,896,171 | |||||
HAND & MACHINE TOOLS – 0.12% | |||||
Shihlin Electric & Engineering Corp. | 1,360,080 | 989,308 | |||
989,308 | |||||
HOME FURNISHINGS – 0.64% | |||||
Nien Made Enterprise Co. Ltd. | 1,360,560 | 2,233,298 | |||
Sampo Corp. | 4,192,955 | 985,149 | |||
Teco Electric and Machinery Co. Ltd. | 6,800,092 | 2,177,693 | |||
5,396,140 | |||||
INSURANCE – 5.18% | |||||
Cathay Financial Holding Co. Ltd. | 17,681,055 | 35,851,512 | |||
Shin Kong Financial Holding Co. Ltd. | 7,401,957 | 7,504,398 | |||
43,355,910 | |||||
INVESTMENT COMPANIES – 1.87% | |||||
China Development Financial Holding Co.1 | 35,360,338 | 15,648,685 | |||
15,648,685 | |||||
IRON & STEEL – 4.06% | |||||
China Steel Corp. | 28,560,707 | 34,011,785 | |||
Tung Ho Steel Enterprise Corp. | 216 | 185 | |||
34,011,970 | |||||
LEISURE TIME – 0.29% | |||||
Giant Manufacturing Co. Ltd. | 1,360,914 | 2,409,085 | |||
2,409,085 | |||||
MANUFACTURING – 0.20% | |||||
Premier Image Technology Corp. | 1,397,857 | 1,709,642 | |||
1,709,642 | |||||
METAL FABRICATE & HARDWARE – 0.25% | |||||
Yieh Phui Enterprise | 2,896,170 | 2,106,644 | |||
2,106,644 | |||||
MULTIPLE UTILITIES – 0.26% | |||||
Fu Sheng Industrial Co. Ltd. | 1,511,000 | 2,188,445 | |||
2,188,445 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.21% | |||||
Kinpo Electronics Inc. | 4,080,733 | 1,792,791 | |||
1,792,791 | |||||
REAL ESTATE – 0.29% | |||||
Cathay Real Estate Development Co. Ltd. | 4,080,493 | 2,429,647 | |||
2,429,647 | |||||
RETAIL – 0.55% | |||||
Far Eastern Department Stores Co. Ltd. | 160 | 90 | |||
President Chain Store Corp. | 2,720,640 | 4,597,155 | |||
4,597,245 | |||||
SEMICONDUCTORS – 24.81% | |||||
Advanced Semiconductor Engineering Inc.1 | 12,240,727 | 9,652,327 | |||
Macronix International Co. Ltd.1 | 17,680,200 | 3,471,169 | |||
MediaTek Inc. | 2,720,036 | 20,398,081 | |||
Realtek Semiconductor Corp. | 2,720,860 | 3,065,018 | |||
Siliconware Precision Industries Co. Ltd. | 6,800,577 | 6,347,497 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 66,640,717 | 117,967,153 | |||
United Microelectronics Corp.1 | 59,840,390 | 40,060,512 | |||
Via Technologies Inc.1 | 2,854,861 | 1,653,927 |
SCHEDULESOF INVESTMENTS | 67 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
Winbond Electronics Corp.1 | 13,600,280 | $ | 5,121,444 | ||
207,737,128 | |||||
TELECOMMUNICATIONS – 3.44% | |||||
Accton Technology Corp.1 | 2,720,259 | 1,295,777 | |||
Chunghwa Telecom Co. Ltd. | 6,800,000 | 14,007,081 | |||
D-Link Corp. | 1,398,853 | 1,665,837 | |||
Microelectronics Technology Inc.1 | 420 | 176 | |||
Taiwan Cellular Corp. | 8,160,920 | 8,799,190 | |||
Zyxel Communications Corp. | 1,360,817 | 3,065,890 | |||
28,833,951 | |||||
TEXTILES – 1.09% | |||||
Far Eastern Textile Ltd. | 8,469,807 | 6,378,934 | |||
Formosa Taffeta Co. Ltd. | 2,720,777 | 1,409,865 | |||
Nien Hsing Textile Co. Ltd. | 1,360,800 | 1,340,215 | |||
9,129,014 | |||||
TRANSPORTATION – 1.08% | |||||
Evergreen Marine Corp. Ltd. | 2,808,177 | 2,901,271 | |||
Wan Hai Lines Ltd. | 1,711,986 | 1,989,144 | |||
Yang Ming Marine Transport Corp. | 4,190,667 | 4,127,274 | |||
9,017,689 | |||||
TOTAL COMMON STOCKS | 835,818,751 | ||||
SHORT-TERM INVESTMENTS – 0.07% | |||||
MONEY MARKET FUNDS – 0.07% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares3 | 561,843 | 561,843 | |||
561,843 | |||||
TOTAL SHORT-TERM INVESTMENTS | 561,843 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.89% | 836,380,594 | ||||
Other Assets, Less Liabilities – 0.11% | 939,702 | ||||
NET ASSETS – 100.00% | $ | 837,320,296 | |||
1 | Non-income earning security. |
2 | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
3 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
See notes to financial statements.
68 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2005
iShares MSCI | |||||||||||||||||||||||
Australia Index Fund | Brazil Index Fund | Canada Index Fund | Emerging Markets Index Fund | Hong Kong Index Fund | Malaysia Index Fund | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Investments, at cost: | |||||||||||||||||||||||
Unaffiliated issuers | $ | 311,684,943 | $ | 304,604,591 | $ | 233,187,237 | $ | 4,211,874,617 | $ | 663,704,310 | $ | 257,879,678 | |||||||||||
Affiliated issuersa | $ | 566,201 | $ | 1,511,654 | $ | 149,431 | $ | 51,985,534 | $ | 2,398,809 | $ | 387,128 | |||||||||||
Foreign currencies, at cost | $ | 659,948 | $ | — | $ | 348,632 | $ | 4,743,569 | $ | 623,102 | $ | 88,255 | |||||||||||
Investments in securities, at value (including securities on loanb) (Note 1): | |||||||||||||||||||||||
Unaffiliated issuers | $ | 365,863,540 | $ | 474,082,456 | $ | 313,319,056 | $ | 5,224,148,388 | $ | 748,837,934 | $ | 320,536,562 | |||||||||||
Affiliated issuersa | 566,201 | 1,511,654 | 149,431 | 58,508,336 | 2,398,809 | 387,128 | |||||||||||||||||
Foreign currencies, at value | 664,345 | — | 353,021 | 4,866,391 | 623,158 | 88,255 | |||||||||||||||||
Receivables: | |||||||||||||||||||||||
Investment securities sold | 1,457,550 | 11,467,214 | 1,110,934 | 4,884,688 | — | 2,541,786 | |||||||||||||||||
Dividends and interest | 2,753,160 | 1,204,551 | 286,940 | 10,113,810 | 125,526 | 257,227 | |||||||||||||||||
Capital shares sold | 98,738 | 7,582,658 | — | 250,488 | — | 1,599,701 | |||||||||||||||||
Total Assets | 371,403,534 | 495,848,533 | 315,219,382 | 5,302,772,101 | 751,985,427 | 325,410,659 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investment securities purchased | 1,491,757 | 19,066,663 | 928,283 | 12,228,117 | — | 4,199,893 | |||||||||||||||||
Collateral for securities on loan (Note 5) | 24,952,366 | 8,818,660 | — | 706,557,904 | 108,247,525 | — | |||||||||||||||||
Investment advisory fees (Note 2) | 257,633 | 471,440 | 293,097 | 5,069,942 | 593,679 | 288,696 | |||||||||||||||||
Total Liabilities | 26,701,756 | 28,356,763 | 1,221,380 | 723,855,963 | 108,841,204 | 4,488,589 | |||||||||||||||||
NET ASSETS | $ | 344,701,778 | $ | 467,491,770 | $ | 313,998,002 | $ | 4,578,916,138 | $ | 643,144,223 | $ | 320,922,070 | |||||||||||
Net assets consist of: | |||||||||||||||||||||||
Paid-in capital | $ | 270,863,445 | $ | 356,004,663 | $ | 196,447,127 | $ | 3,574,164,686 | $ | 568,848,438 | $ | 294,679,148 | |||||||||||
Undistributed (distributions in excess of) net investment income | (784,623 | ) | 1,072,154 | 45,970 | 488,468 | (1,010,774 | ) | (320,449 | ) | ||||||||||||||
Undistributed net realized gain (accumulated net realized loss) | 20,405,518 | (59,131,952 | ) | 37,367,987 | (14,656,958 | ) | (9,827,113 | ) | (36,093,513 | ) | |||||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 54,217,438 | 169,546,905 | 80,136,918 | 1,018,919,942 | 85,133,672 | 62,656,884 | |||||||||||||||||
NET ASSETS | $ | 344,701,778 | $ | 467,491,770 | $ | 313,998,002 | $ | 4,578,916,138 | $ | 643,144,223 | $ | 320,922,070 | |||||||||||
Shares outstanding | 19,400,000 | 18,550,000 | 17,900,000 | 20,800,000 | 53,850,000 | 45,150,000 | |||||||||||||||||
Net asset value per share | $ | 17.77 | $ | 25.20 | $ | 17.54 | $ | 220.14 | $ | 11.94 | $ | 7.11 | |||||||||||
a | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market values of $23,688,719, $8,519,015, $—, $677,401,361, $102,728,217 and $—, respectively. See Note 5. |
See notes to financial statements.
FINANCIAL STATEMENTS | 69 |
Table of Contents
Statement of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2005
iShares MSCI | |||||||||||||||||||||||
Mexico Index Fund | Pacific ex-Japan Index Fund | Singapore Index Fund | South Africa Index Fund | South Korea Index Fund | Taiwan Index Fund | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Investments, at cost: | |||||||||||||||||||||||
Unaffiliated issuers | $ | 234,256,874 | $ | 1,058,106,628 | $ | 215,343,177 | $ | 97,017,557 | $ | 425,736,469 | $ | 722,045,118 | |||||||||||
Affiliated issuersa | $ | 157,816 | $ | 3,664,151 | $ | 579,065 | $ | 86,044 | $ | 1,890,374 | $ | 561,843 | |||||||||||
Foreign currencies, at cost | $ | 160,755 | $ | 1,905,779 | $ | 562,374 | $ | 106,276 | $ | — | $ | 612,912 | |||||||||||
Investments in securities, at value | |||||||||||||||||||||||
(including securities on loanb) (Note 1): | |||||||||||||||||||||||
Unaffiliated issuers | $ | 283,120,354 | $ | 1,310,961,428 | $ | 261,295,018 | $ | 149,357,942 | $ | 630,096,891 | $ | 835,818,751 | |||||||||||
Affiliated issuersa | 157,816 | 3,664,151 | 579,065 | 86,044 | 1,890,374 | 561,843 | |||||||||||||||||
Foreign currencies, at value | 161,407 | 1,918,498 | 563,610 | 108,309 | — | 614,954 | |||||||||||||||||
Receivables: | |||||||||||||||||||||||
Investment securities sold | 4,908,565 | 4,487,099 | 2,042,023 | — | 3,673,353 | 3,545,603 | |||||||||||||||||
Dividends and interest | 495 | 6,894,904 | 77,538 | 36,820 | 9,864,393 | 1,005 | |||||||||||||||||
Capital shares sold | 3,223 | — | 44,228 | — | 8,605,249 | — | |||||||||||||||||
Total Assets | 288,351,860 | 1,327,926,080 | 264,601,482 | 149,589,115 | 654,130,260 | 840,542,156 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investment securities purchased | 4,899,726 | 5,296,802 | 2,422,165 | — | 12,674,692 | 2,332,325 | |||||||||||||||||
Collateral for securities on loan (Note 5) | 2,456,420 | 142,814,858 | 26,022,719 | — | — | — | |||||||||||||||||
Investment advisory fees (Note 2) | 225,480 | 834,165 | 76,194 | 164,007 | 627,014 | 889,535 | |||||||||||||||||
Accrued expenses | — | — | 224,451 | — | — | — | |||||||||||||||||
Total Liabilities | 7,581,626 | 148,945,825 | 28,745,529 | 164,007 | 13,301,706 | 3,221,860 | |||||||||||||||||
NET ASSETS | $ | 280,770,234 | $ | 1,178,980,255 | $ | 235,855,953 | $ | 149,425,108 | $ | 640,828,554 | $ | 837,320,296 | |||||||||||
Net assets consist of: | |||||||||||||||||||||||
Paid-in capital | $ | 231,440,282 | $ | 932,592,913 | $ | 210,019,314 | $ | 87,975,471 | $ | 453,018,510 | $ | 795,882,884 | |||||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) | (238,553 | ) | (2,430,559 | ) | (1,703,078 | ) | 401,183 | 7,951,078 | (1,901,504 | ) | |||||||||||||
Undistributed net realized gain (accumulated net realized loss) | 704,361 | (4,146,295 | ) | (18,413,782 | ) | 8,706,089 | (24,828,791 | ) | (70,435,746 | ) | |||||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 48,864,144 | 252,964,196 | 45,953,499 | 52,342,365 | 204,687,757 | 113,774,662 | |||||||||||||||||
NET ASSETS | $ | 280,770,234 | $ | 1,178,980,255 | $ | 235,855,953 | $ | 149,425,108 | $ | 640,828,554 | $ | 837,320,296 | |||||||||||
Shares outstanding | 10,500,000 | 12,600,000 | 32,300,000 | 1,850,000 | 18,750,000 | 68,000,000 | |||||||||||||||||
Net asset value per share | $ | 26.74 | $ | 93.57 | $ | 7.30 | $ | 80.77 | $ | 34.18 | $ | 12.31 | |||||||||||
a | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market values of $2,407,852, $135,467,890, $24,331,369, $—, $— and $—, respectively. See Note 5. |
See notes to financial statements.
70 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
For the six months ended February 28, 2005
iShares MSCI | ||||||||||||||||||||||
Australia Index Fund | Brazil Index Fund | Canada Index Fund | Emerging Markets Index Fund | Hong Kong Index Fund | Malaysia Index Fund | |||||||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||||||||
Dividendsa | $ | 5,822,378 | $ | 5,725,331 | $ | 2,574,618 | $ | 31,492,379 | $ | 5,742,788 | $ | 3,838,796 | ||||||||||
Dividends from affiliated issuersb | — | — | — | 280,317 | — | — | ||||||||||||||||
Interest from affiliated issuersb | 1,349 | 12,072 | 1,575 | 60,909 | 2,842 | 5,723 | ||||||||||||||||
Securities lending incomec | 19,583 | 329 | — | 1,583,137 | 99,535 | — | ||||||||||||||||
Total investment income | 5,843,310 | 5,737,732 | 2,576,193 | 33,416,742 | 5,845,165 | 3,844,519 | ||||||||||||||||
EXPENSES (Note 2) | ||||||||||||||||||||||
Investment advisory fees | 675,692 | 1,156,579 | 952,366 | 11,628,703 | 1,592,227 | 763,385 | ||||||||||||||||
Stock dividend taxes | — | — | — | 256,380 | — | — | ||||||||||||||||
Total expenses | 675,692 | 1,156,579 | 952,366 | 11,885,083 | 1,592,227 | 763,385 | ||||||||||||||||
Net investment income | 5,167,618 | 4,581,153 | 1,623,827 | 21,531,659 | 4,252,938 | 3,081,134 | ||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||||
Investments | 442,868 | 942,364 | (1,046,836 | ) | 4,078,571 | (573,583 | ) | (872,853 | ) | |||||||||||||
Investments in affiliated issuersb | — | — | — | (367,010 | ) | — | — | |||||||||||||||
In-kind redemptions | 30,505,756 | — | 52,334,378 | 7,303,135 | 6,385,878 | — | ||||||||||||||||
Foreign currency transactions | 77,042 | 157,923 | 53,295 | (413,092 | ) | 2,620 | (5,181 | ) | ||||||||||||||
Net realized gain (loss) | 31,025,666 | 1,100,287 | 51,340,837 | 10,601,604 | 5,814,915 | (878,034 | ) | |||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||
Investments | 35,475,346 | 131,261,454 | 18,631,796 | 990,654,664 | 48,963,021 | 21,993,858 | ||||||||||||||||
Translation of assets and liabilities in foreign currencies | 44,710 | 59,622 | 2,818 | 198,722 | 101 | — | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 35,520,056 | 131,321,076 | 18,634,614 | 990,853,386 | 48,963,122 | 21,993,858 | ||||||||||||||||
Net realized and unrealized gain | 66,545,722 | 132,421,363 | 69,975,451 | 1,001,454,990 | 54,778,037 | 21,115,824 | ||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 71,713,340 | $ | 137,002,516 | $ | 71,599,278 | $ | 1,022,986,649 | $ | 59,030,975 | $ | 24,196,958 | ||||||||||
a | Net of foreign withholding tax of $187,034, $817,856, $454,344, $3,586,624, $— and $1,172,264, respectively. |
b | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
c | Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2. |
See notes to financial statements.
FINANCIAL STATEMENTS | 71 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
For the six months ended February 28, 2005
iShares MSCI | ||||||||||||||||||||
Mexico Index Fund | Pacific ex-Japan Index Fund | Singapore Index Fund | South Africa Index Fund | South Korea Index Fund | Taiwan Index Fund | |||||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||||||
Dividendsa | $ | 1,127,148 | $ | 17,108,352 | $ | 2,198,309 | $ | 1,550,211 | $ | 9,535,224 | $ | 192,360 | ||||||||
Interest from affiliated issuersb | 916 | 5,075 | 1,258 | 663 | 5,028 | 4,309 | ||||||||||||||
Securities lending incomec | 348 | 109,594 | 30,460 | — | — | — | ||||||||||||||
Total investment income | 1,128,412 | 17,223,021 | 2,230,027 | 1,550,874 | 9,540,252 | 196,669 | ||||||||||||||
EXPENSES (Note 2) | ||||||||||||||||||||
Investment advisory fees | 554,142 | 2,130,954 | 367,088 | 441,064 | 1,546,193 | 2,048,784 | ||||||||||||||
Custodian fees and expenses | — | — | 57,235 | — | — | — | ||||||||||||||
Directors’ fees | — | — | 4,938 | — | — | — | ||||||||||||||
Federal and state registration fees | — | — | 4,248 | — | — | — | ||||||||||||||
Printing | — | — | 23,500 | — | — | — | ||||||||||||||
MSCI license fee | — | — | 98,817 | — | — | — | ||||||||||||||
Stock dividend taxes | — | — | — | — | 15 | 49,389 | ||||||||||||||
Total expenses | 554,142 | 2,130,954 | 555,826 | 441,064 | 1,546,208 | 2,098,173 | ||||||||||||||
Net investment income (loss) | 574,270 | 15,092,067 | 1,674,201 | 1,109,810 | 7,994,044 | (1,901,504 | ) | |||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments | 75,085 | 3,208,144 | 872,673 | 127,792 | (2,138,728 | ) | (10,450,033 | ) | ||||||||||||
In-kind redemptions | 7,684,373 | — | — | 9,434,334 | — | — | ||||||||||||||
Foreign currency transactions | 14,130 | 229,717 | 67,066 | 10,194 | 6,739 | 88,853 | ||||||||||||||
Net realized gain (loss) | 7,773,588 | 3,437,861 | 939,739 | 9,572,320 | (2,131,989 | ) | (10,361,180 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | 56,652,194 | 186,964,942 | 25,817,065 | 26,083,709 | 154,065,317 | 104,677,503 | ||||||||||||||
Translation of assets and liabilities in foreign currencies | 1,520 | 120,084 | 1,336 | 11,823 | 327,334 | 11,039 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | 56,653,714 | 187,085,026 | 25,818,401 | 26,095,532 | 154,392,651 | 104,688,542 | ||||||||||||||
Net realized and unrealized gain | 64,427,302 | 190,522,887 | 26,758,140 | 35,667,852 | 152,260,662 | 94,327,362 | ||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 65,001,572 | $ | 205,614,954 | $ | 28,432,341 | $ | 36,777,662 | $ | 160,254,706 | $ | 92,425,858 | ||||||||
a | Net of foreign withholding tax of $—, $671,046, $327,772, $—, $1,884,301 and $22,945, respectively. |
b | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
c | Includes income earned from issuers of which the Funds’ investment adviser is an affiliate. See Note 2. |
See notes to financial statements.
72 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Australia Index Fund | iShares MSCI Brazil Index Fund | iShares MSCI Canada Index Fund | ||||||||||||||||||||||
For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 5,167,618 | $ | 5,265,617 | $ | 4,581,153 | $ | 8,655,485 | $ | 1,623,827 | $ | 2,839,492 | ||||||||||||
Net realized gain | 31,025,666 | 9,686,425 | 1,100,287 | 45,107,732 | 51,340,837 | 93,207,203 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 35,520,056 | 7,651,309 | 131,321,076 | 23,024,278 | 18,634,614 | (24,881,737 | ) | |||||||||||||||||
Net increase in net assets resulting from operations | 71,713,340 | 22,603,351 | 137,002,516 | 76,787,495 | 71,599,278 | 71,164,958 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (9,320,851 | ) | (4,470,639 | ) | (8,052,116 | ) | (5,717,313 | ) | (3,453,495 | ) | (4,394,348 | ) | ||||||||||||
Total distributions to shareholders | (9,320,851 | ) | (4,470,639 | ) | (8,052,116 | ) | (5,717,313 | ) | (3,453,495 | ) | (4,394,348 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 177,394,036 | 106,224,512 | 147,613,827 | 265,754,092 | 54,328,084 | 98,535,887 | ||||||||||||||||||
Cost of shares redeemed | (74,083,173 | ) | (32,899,563 | ) | (18,576,041 | ) | (230,355,301 | ) | (133,773,680 | ) | (343,415,496 | ) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | 103,310,863 | 73,324,949 | 129,037,786 | 35,398,791 | (79,445,596 | ) | (244,879,609 | ) | ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | 165,703,352 | 91,457,661 | 257,988,186 | 106,468,973 | (11,299,813 | ) | (178,108,999 | ) | ||||||||||||||||
NET ASSETS: |
| |||||||||||||||||||||||
Beginning of period | 178,998,426 | 87,540,765 | 209,503,584 | 103,034,611 | 325,297,815 | 503,406,814 | ||||||||||||||||||
End of period | $ | 344,701,778 | $ | 178,998,426 | $ | 467,491,770 | $ | 209,503,584 | $ | 313,998,002 | $ | 325,297,815 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (784,623 | ) | $ | 3,368,610 | $ | 1,072,154 | $ | 4,543,117 | $ | 45,970 | $ | 1,875,638 | |||||||||||
SHARES ISSUED AND REDEEMED: |
| |||||||||||||||||||||||
Shares sold | 10,800,000 | 8,000,000 | 7,100,000 | 18,600,000 | 3,200,000 | 7,200,000 | ||||||||||||||||||
Shares redeemed | (4,600,000 | ) | (2,600,000 | ) | (900,000 | ) | (14,700,000 | ) | (8,000,000 | ) | (25,600,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 6,200,000 | 5,400,000 | 6,200,000 | 3,900,000 | (4,800,000 | ) | (18,400,000 | ) | ||||||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 73 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Emerging Markets Index Fund | iShares MSCI Hong Kong Index Fund | iShares MSCI Malaysia Index Fund | ||||||||||||||||||||||
For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 21,531,659 | $ | 28,887,584 | $ | 4,252,938 | $ | 11,714,811 | $ | 3,081,134 | $ | 3,951,040 | ||||||||||||
Net realized gain (loss) | 10,601,604 | 34,568,649 | 5,814,915 | 23,540,083 | (878,034 | ) | (8,032,612 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 990,853,386 | (1,740,338 | ) | 48,963,122 | 25,672,069 | 21,993,858 | 10,040,748 | |||||||||||||||||
Net increase in net assets resulting from operations | 1,022,986,649 | 61,715,895 | 59,030,975 | 60,926,963 | 24,196,958 | 5,959,176 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (45,604,575 | ) | (4,998,228 | ) | (14,195,028 | ) | (6,211,899 | ) | (6,156,574 | ) | (2,163,298 | ) | ||||||||||||
Total distributions to shareholders | (45,604,575 | ) | (4,998,228 | ) | (14,195,028 | ) | (6,211,899 | ) | (6,156,574 | ) | (2,163,298 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 1,662,482,476 | 1,833,607,273 | 169,001,101 | 262,371,854 | 81,117,963 | 180,819,437 | ||||||||||||||||||
Cost of shares redeemed | (19,544,762 | ) | (229,574,799 | ) | (20,615,618 | ) | (117,791,065 | ) | (2,454,390 | ) | (60,126,782 | ) | ||||||||||||
Net increase in net assets from capital share transactions | 1,642,937,714 | 1,604,032,474 | 148,385,483 | 144,580,789 | 78,663,573 | 120,692,655 | ||||||||||||||||||
INCREASE IN NET ASSETS | 2,620,319,788 | 1,660,750,141 | 193,221,430 | 199,295,853 | 96,703,957 | 124,488,533 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 1,958,596,350 | 297,846,209 | 449,922,793 | 250,626,940 | 224,218,113 | 99,729,580 | ||||||||||||||||||
End of period | $ | 4,578,916,138 | $ | 1,958,596,350 | $ | 643,144,223 | $ | 449,922,793 | $ | 320,922,070 | $ | 224,218,113 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 488,468 | $ | 24,561,384 | $ | (1,010,774 | ) | $ | 8,931,316 | $ | (320,449 | ) | $ | 2,754,991 | ||||||||||
SHARES ISSUED AND REDEEMED: |
| |||||||||||||||||||||||
Shares sold | 8,800,000 | 11,350,000 | 14,325,000 | 25,650,000 | 11,250,000 | 26,925,000 | ||||||||||||||||||
Shares redeemed | (100,000 | ) | (1,450,000 | ) | (1,725,000 | ) | (12,150,000 | ) | (375,000 | ) | (9,300,000 | ) | ||||||||||||
Net increase in shares outstanding | 8,700,000 | 9,900,000 | 12,600,000 | 13,500,000 | 10,875,000 | 17,625,000 | ||||||||||||||||||
See notes to financial statements.
74 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Mexico Index Fund | iShares MSCI Pacific ex-Japan Index Fund | iShares MSCI Singapore Index Fund | ||||||||||||||||||||||
For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 574,270 | $ | 1,426,138 | $ | 15,092,067 | $ | 19,602,876 | $ | 1,674,201 | $ | 5,623,277 | ||||||||||||
Net realized gain | 7,773,588 | 10,436,818 | 3,437,861 | 12,895,227 | 939,739 | 264,490 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 56,653,714 | (644,904 | ) | 187,085,026 | 43,117,628 | 25,818,401 | 23,413,442 | |||||||||||||||||
Net increase in net assets resulting from operations | 65,001,572 | 11,218,052 | 205,614,954 | 75,615,731 | 28,432,341 | 29,301,209 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (2,048,280 | ) | (788,654 | ) | (31,933,222 | ) | (9,962,572 | ) | (7,420,067 | ) | (3,170,833 | ) | ||||||||||||
Total distributions to shareholders | (2,048,280 | ) | (788,654 | ) | (31,933,222 | ) | (9,962,572 | ) | (7,420,067 | ) | (3,170,833 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 129,895,684 | 228,974,858 | 354,048,473 | 424,290,639 | 44,797,169 | 49,430,368 | ||||||||||||||||||
Cost of shares redeemed | (41,701,521 | ) | (169,936,912 | ) | — | (61,991,273 | ) | — | (13,716,664 | ) | ||||||||||||||
Net increase in net assets from capital share transactions | 88,194,163 | 59,037,946 | 354,048,473 | 362,299,366 | 44,797,169 | 35,713,704 | ||||||||||||||||||
INCREASE IN NET ASSETS | 151,147,455 | 69,467,344 | 527,730,205 | 427,952,525 | 65,809,443 | 61,844,080 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 129,622,779 | 60,155,435 | 651,250,050 | 223,297,525 | 170,046,510 | 108,202,430 | ||||||||||||||||||
End of period | $ | 280,770,234 | $ | 129,622,779 | $ | 1,178,980,255 | $ | 651,250,050 | $ | 235,855,953 | $ | 170,046,510 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (238,553 | ) | $ | 1,235,457 | $ | (2,430,559 | ) | $ | 14,410,596 | $ | (1,703,078 | ) | $ | 4,042,788 | |||||||||
SHARES ISSUED AND REDEEMED: |
| |||||||||||||||||||||||
Shares sold | 5,600,000 | 12,300,000 | 4,000,000 | 5,900,000 | 6,200,000 | 8,200,000 | ||||||||||||||||||
Shares redeemed | (1,800,000 | ) | (9,600,000 | ) | — | (900,000 | ) | — | (2,200,000 | ) | ||||||||||||||
Net increase in shares outstanding | 3,800,000 | 2,700,000 | 4,000,000 | 5,000,000 | 6,200,000 | 6,000,000 | ||||||||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 75 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI South Africa Index Fund | iShares MSCI South Korea Index Fund | iShares MSCI Taiwan Index Fund | ||||||||||||||||||||||
For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | For the six months ended February 28, 2005 (Unaudited) | For the year ended August 31, 2004 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 1,109,810 | $ | 1,953,405 | $ | 7,994,044 | $ | 2,173,679 | $ | (1,901,504 | ) | $ | 4,688,145 | |||||||||||
Net realized gain (loss) | 9,572,320 | 7,316,450 | (2,131,989 | ) | (14,302,124 | ) | (10,361,180 | ) | (20,194,826 | ) | ||||||||||||||
Net change in unrealized appreciation (depreciation) | 26,095,532 | 13,784,731 | 154,392,651 | 4,228,087 | 104,688,542 | (8,427,465 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 36,777,662 | 23,054,586 | 160,254,706 | (7,900,358 | ) | 92,425,858 | (23,934,146 | ) | ||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (2,053,497 | ) | (2,182,948 | ) | (1,677,739 | ) | (1,814,739 | ) | (4,632,113 | ) | (637,002 | ) | ||||||||||||
Total distributions to shareholders | (2,053,497 | ) | (2,182,948 | ) | (1,677,739 | ) | (1,814,739 | ) | (4,632,113 | ) | (637,002 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 29,354,912 | 14,747,859 | 179,190,611 | 213,845,316 | 375,135,441 | 223,498,562 | ||||||||||||||||||
Cost of shares redeemed | (7,536,175 | ) | (24,651,115 | ) | (12,402,726 | ) | (43,152,032 | ) | (15,836,967 | ) | (43,426,617 | ) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | 21,818,737 | (9,903,256 | ) | 166,787,885 | 170,693,284 | 359,298,474 | 180,071,945 | |||||||||||||||||
INCREASE IN NET ASSETS | 56,542,902 | 10,968,382 | 325,364,852 | 160,978,187 | 447,092,219 | 155,500,797 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 92,882,206 | 81,913,824 | 315,463,702 | 154,485,515 | 390,228,077 | 234,727,280 | ||||||||||||||||||
End of period | $ | 149,425,108 | $ | 92,882,206 | $ | 640,828,554 | $ | 315,463,702 | $ | 837,320,296 | $ | 390,228,077 | ||||||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | 401,183 | $ | 1,344,870 | $ | 7,951,078 | $ | 1,634,773 | $ | (1,901,504 | ) | $ | 4,632,113 | |||||||||||
SHARES ISSUED AND REDEEMED: |
| |||||||||||||||||||||||
Shares sold | 400,000 | 250,000 | 6,200,000 | 8,150,000 | 32,800,000 | 18,800,000 | ||||||||||||||||||
Shares redeemed | (100,000 | ) | (450,000 | ) | (500,000 | ) | (1,800,000 | ) | (1,400,000 | ) | (3,950,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 300,000 | (200,000 | ) | 5,700,000 | 6,350,000 | 31,400,000 | 14,850,000 | |||||||||||||||||
See notes to financial statements.
76 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Australia Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 13.56 | $ | 11.22 | $ | 9.36 | $ | 9.24 | $ | 9.93 | $ | 9.99 | ||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment incomea | 0.35 | 0.45 | 0.32 | 0.23 | 0.24 | 0.23 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 4.44 | 2.32 | 1.81 | (0.07 | ) | (0.71 | ) | (0.04 | ) | |||||||||||||||
Total from investment operations | 4.79 | 2.77 | 2.13 | 0.16 | (0.47 | ) | 0.19 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.58 | ) | (0.43 | ) | (0.27 | ) | (0.04 | ) | (0.20 | ) | (0.23 | ) | ||||||||||||
Return of capital | — | — | — | — | (0.02 | ) | (0.02 | ) | ||||||||||||||||
Total distributions | (0.58 | ) | (0.43 | ) | (0.27 | ) | (0.04 | ) | (0.22 | ) | (0.25 | ) | ||||||||||||
Net asset value, end of period | $ | 17.77 | $ | 13.56 | $ | 11.22 | $ | 9.36 | $ | 9.24 | $ | 9.93 | ||||||||||||
Total return | 35.69 | %b | 24.95 | % | 23.33 | % | 1.74 | % | (4.77 | )% | 1.84 | % | ||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 344,702 | $ | 178,998 | $ | 87,541 | $ | 76,731 | $ | 57,312 | $ | 61,574 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.95 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 4.46 | % | 3.37 | % | 3.21 | % | 2.47 | % | 2.54 | % | 2.22 | % | ||||||||||||
Portfolio turnover rated | 11 | % | 9 | % | 8 | % | 5 | % | 23 | % | 36 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 77 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Brazil Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Period from Jul. 10, 2000a to Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.96 | $ | 12.19 | $ | 8.30 | $ | 11.20 | $ | 19.25 | $ | 20.22 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.30 | 0.55 | 0.32 | 0.38 | 0.68 | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 8.40 | 4.49 | 3.68 | (3.28 | ) | (8.09 | ) | (0.63 | ) | |||||||||||||||
Total from investment operations | 8.70 | 5.04 | 4.00 | (2.90 | ) | (7.41 | ) | (0.61 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.46 | ) | (0.27 | ) | (0.11 | ) | — | (0.56 | ) | (0.02 | ) | |||||||||||||
Net realized gain | — | — | — | — | — | (0.34 | ) | |||||||||||||||||
Return of capital | — | — | — | — | (0.08 | ) | — | |||||||||||||||||
Total distributions | (0.46 | ) | (0.27 | ) | (0.11 | ) | — | (0.64 | ) | (0.36 | ) | |||||||||||||
Net asset value, end of period | $ | 25.20 | $ | 16.96 | $ | 12.19 | $ | 8.30 | $ | 11.20 | $ | 19.25 | ||||||||||||
Total return | 51.59 | %c | 41.42 | % | 48.85 | % | (25.89 | )% | (38.52 | )% | (2.97 | )%c | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 467,492 | $ | 209,504 | $ | 103,035 | $ | 83,788 | $ | 14,004 | $ | 18,283 | ||||||||||||
Ratio of expenses to average net assetsd | 0.74 | % | 0.96 | % | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | %f | ||||||||||||
Ratio of net investment income to average net assetsd | 2.93 | % | 3.59 | % | 3.59 | % | 3.50 | % | 4.44 | % | 0.77 | %g | ||||||||||||
Portfolio turnover ratee | 13 | % | 106 | % | 85 | % | 103 | % | 43 | % | 64 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2005 would have been 6%. See Note 4. |
f | Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 1.40%. |
g | Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 0.37%. |
See notes to financial statements.
78 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Canada Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 14.33 | $ | 12.25 | $ | 9.49 | $ | 10.70 | $ | 16.94 | $ | 13.22 | ||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment incomea | 0.08 | 0.11 | 0.10 | 0.07 | 0.05 | 0.70 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 3.33 | 2.17 | 2.69 | (1.27 | ) | (5.92 | ) | 8.08 | ||||||||||||||||
Total from investment operations | 3.41 | 2.28 | 2.79 | (1.20 | ) | (5.87 | ) | 8.78 | ||||||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.20 | ) | (0.03 | ) | (0.01 | ) | (0.02 | ) | (0.55 | ) | ||||||||||||
Net realized gain | — | — | — | — | (0.31 | ) | (4.39 | ) | ||||||||||||||||
Return of capital | — | — | — | — | (0.04 | ) | (0.12 | ) | ||||||||||||||||
Total distributions | (0.20 | ) | (0.20 | ) | (0.03 | ) | (0.01 | ) | (0.37 | ) | (5.06 | ) | ||||||||||||
Net asset value, end of period | $ | 17.54 | $ | 14.33 | $ | 12.25 | $ | 9.49 | $ | 10.70 | $ | 16.94 | ||||||||||||
Total return | 23.86 | %b | 18.70 | % | 29.47 | % | (11.23 | )% | (34.95 | )% | 67.21 | % | ||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 313,998 | $ | 325,298 | $ | 503,407 | $ | 66,420 | $ | 28,889 | $ | 22,028 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.70 | %e | 0.84 | % | 0.84 | % | 0.84 | % | 1.17 | %g | ||||||||||||
Ratio of net investment income to average net assetsc | 0.99 | % | 0.81 | %f | 0.98 | % | 0.70 | % | 0.44 | % | 4.07 | %h | ||||||||||||
Portfolio turnover rated | 2 | % | 10 | % | 10 | % | 5 | % | 63 | % | 64 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Ratio of expenses to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 0.80%. |
f | Ratio of net investment income to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 0.71%. |
g | Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2000 was 1.19%. |
h | Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2000 was 4.05%. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 79 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Emerging Markets Index Fund | ||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Period from Apr. 7, 2003a to Aug. 31, 2003 | ||||||||||
Net asset value, beginning of period | $ | 161.87 | $ | 135.38 | $ | 101.25 | ||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 1.30 | 3.38 | 0.78 | |||||||||
Net realized and unrealized gain | 59.38 | 23.92 | 33.35 | |||||||||
Total from investment operations | 60.68 | 27.30 | 34.13 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | (2.41 | ) | (0.81 | ) | — | |||||||
Total distributions | (2.41 | ) | (0.81 | ) | — | |||||||
Net asset value, end of period | $ | 220.14 | $ | 161.87 | $ | 135.38 | ||||||
Total return | 37.68 | %c | 20.21 | % | 33.72 | %c | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 4,578,916 | $ | 1,958,596 | $ | 297,846 | ||||||
Ratio of expenses to average net assetsd | 0.76 | % | 0.76 | % | 0.78 | % | ||||||
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsd | 0.74 | % | 0.74 | % | 0.72 | % | ||||||
Ratio of net investment income to average net assetsd | 1.38 | % | 2.10 | % | 1.58 | % | ||||||
Portfolio turnover ratee | 8 | % | 8 | % | 10 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
80 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Hong Kong Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.91 | $ | 9.03 | $ | 7.99 | $ | 8.93 | $ | 13.24 | $ | 11.83 | ||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment incomea | 0.09 | 0.28 | 0.23 | 0.23 | 0.23 | 0.33 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.21 | 1.75 | 0.95 | (1.11 | ) | (4.30 | ) | 1.42 | ||||||||||||||||
Total from investment operations | 1.30 | 2.03 | 1.18 | (0.88 | ) | (4.07 | ) | 1.75 | ||||||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income | (0.27 | ) | (0.15 | ) | (0.14 | ) | (0.06 | ) | (0.23 | ) | (0.32 | ) | ||||||||||||
Return of capital | — | — | — | — | (0.01 | ) | (0.02 | ) | ||||||||||||||||
Total distributions | (0.27 | ) | (0.15 | ) | (0.14 | ) | (0.06 | ) | (0.24 | ) | (0.34 | ) | ||||||||||||
Net asset value, end of period | $ | 11.94 | $ | 10.91 | $ | 9.03 | $ | 7.99 | $ | 8.93 | $ | 13.24 | ||||||||||||
Total return | 11.93 | %b | 22.69 | % | 15.14 | % | (9.94 | )% | (30.88 | )% | 14.73 | % | ||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 643,144 | $ | 449,923 | $ | 250,627 | $ | 99,502 | $ | 52,946 | $ | 79,479 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.80 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.94 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.56 | % | 2.78 | % | 3.06 | % | 2.56 | % | 2.11 | % | 2.57 | % | ||||||||||||
Portfolio turnover rated | 3 | % | 5 | % | 10 | % | 15 | % | 43 | % | 21 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 81 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Malaysia Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 6.54 | $ | 5.99 | $ | 5.68 | $ | 5.11 | $ | 5.96 | $ | 5.59 | ||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment incomea | 0.08 | 0.13 | 0.10 | 0.08 | 0.06 | 0.05 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.65 | 0.52 | 0.30 | 0.52 | (0.85 | ) | 0.37 | |||||||||||||||||
Total from investment operations | 0.73 | 0.65 | 0.40 | 0.60 | (0.79 | ) | 0.42 | |||||||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income | (0.16 | ) | (0.10 | ) | (0.09 | ) | (0.03 | ) | (0.06 | ) | (0.05 | ) | ||||||||||||
Return of capital | — | — | — | — | (0.00 | )e | (0.00 | )e | ||||||||||||||||
Total distributions | (0.16 | ) | (0.10 | ) | (0.09 | ) | (0.03 | ) | (0.06 | ) | (0.05 | ) | ||||||||||||
Net asset value, end of period | $ | 7.11 | $ | 6.54 | $ | 5.99 | $ | 5.68 | $ | 5.11 | $ | 5.96 | ||||||||||||
Total return | 11.14 | %b | 11.01 | % | 7.39 | % | 11.82 | % | (13.22 | )% | 7.57 | % | ||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 320,922 | $ | 224,218 | $ | 99,730 | $ | 93,262 | $ | 80,877 | $ | 99,206 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.96 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 2.35 | % | 1.97 | % | 1.91 | % | 1.53 | % | 1.19 | % | 0.81 | % | ||||||||||||
Portfolio turnover rated | 5 | % | 39 | % | 35 | % | 37 | % | 37 | % | 18 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2005 would have been 1%. See Note 4. |
e | Rounds to less than $0.01. |
See notes to financial statements.
82 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Mexico Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 19.35 | $ | 15.04 | $ | 13.65 | $ | 15.35 | $ | 16.72 | $ | 13.39 | ||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment incomea | 0.07 | 0.26 | 0.19 | 0.32 | 0.17 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 7.60 | 4.26 | 1.72 | (1.95 | ) | (1.36 | ) | 3.69 | ||||||||||||||||
Total from investment operations | 7.67 | 4.52 | 1.91 | (1.63 | ) | (1.19 | ) | 3.75 | ||||||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income | (0.28 | ) | (0.21 | ) | (0.52 | ) | (0.07 | ) | (0.15 | ) | — | |||||||||||||
Net realized gain | — | — | — | — | (0.03 | ) | (0.42 | ) | ||||||||||||||||
Total distributions | (0.28 | ) | (0.21 | ) | (0.52 | ) | (0.07 | ) | (0.18 | ) | (0.42 | ) | ||||||||||||
Net asset value, end of period | $ | 26.74 | $ | 19.35 | $ | 15.04 | $ | 13.65 | $ | 15.35 | $ | 16.72 | ||||||||||||
Total return | 39.75 | %b | 30.28 | % | 14.60 | % | (10.67 | )% | (7.02 | )% | 28.20 | % | ||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 280,770 | $ | 129,623 | $ | 60,155 | $ | 70,994 | $ | 46,056 | $ | 40,127 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.78 | % | 0.84 | % | 0.84 | % | 0.84 | % | 1.04 | %e | ||||||||||||
Ratio of net investment income to average net assetsc | 0.60 | % | 1.40 | % | 1.43 | % | 2.05 | % | 1.12 | % | 0.35 | %f | ||||||||||||
Portfolio turnover rated | 6 | % | 12 | % | 13 | % | 8 | % | 34 | % | 24 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2000 was 1.04%. |
f | Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2000 was 0.35%. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 83 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Pacific ex-Japan Index Fund | ||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Period from Oct. 25, 2001a to Aug. 31, 2002 | |||||||||||||
Net asset value, beginning of period | $ | 75.73 | $ | 62.03 | $ | 52.51 | $ | 50.03 | ||||||||
Income from investment operations: | ||||||||||||||||
Net investment incomeb | 1.51 | 2.68 | 1.87 | 1.35 | ||||||||||||
Net realized and unrealized gain | 19.34 | 12.53 | 8.53 | 1.40 | ||||||||||||
Total from investment operations | 20.85 | 15.21 | 10.40 | 2.75 | ||||||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (3.01 | ) | (1.51 | ) | (0.88 | ) | (0.27 | ) | ||||||||
Total distributions | (3.01 | ) | (1.51 | ) | (0.88 | ) | (0.27 | ) | ||||||||
Net asset value, end of period | $ | 93.57 | $ | 75.73 | $ | 62.03 | $ | 52.51 | ||||||||
Total return | 27.81 | %c | 24.74 | % | 20.15 | % | 5.51 | %c | ||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 1,178,980 | $ | 651,250 | $ | 223,298 | $ | 105,029 | ||||||||
Ratio of expenses to average net assetsd | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||
Ratio of net investment income to average net assetsd | 3.54 | % | 3.68 | % | 3.47 | % | 2.87 | % | ||||||||
Portfolio turnover ratee | 7 | % | 8 | % | 8 | % | 5 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
84 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Singapore Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 6.52 | $ | 5.38 | $ | 5.01 | $ | 5.34 | $ | 7.58 | $ | 7.93 | ||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment incomea | 0.06 | 0.22 | 0.12 | 0.07 | 0.07 | 0.13 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.00 | 1.04 | 0.33 | (0.36 | ) | (2.16 | ) | (0.21 | ) | |||||||||||||||
Total from investment operations | 1.06 | 1.26 | 0.45 | (0.29 | ) | (2.09 | ) | (0.08 | ) | |||||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income | (0.28 | ) | (0.12 | ) | (0.08 | ) | (0.04 | ) | (0.07 | ) | (0.11 | ) | ||||||||||||
Net realized gain | — | — | — | — | �� | (0.06 | ) | (0.14 | ) | |||||||||||||||
Return of capital | — | — | — | — | (0.02 | ) | (0.02 | ) | ||||||||||||||||
Total distributions | (0.28 | ) | (0.12 | ) | (0.08 | ) | (0.04 | ) | (0.15 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of period | $ | 7.30 | $ | 6.52 | $ | 5.38 | $ | 5.01 | $ | 5.34 | $ | 7.58 | ||||||||||||
Total return | 16.55 | %b | 23.47 | % | 9.30 | % | (5.42 | )% | (27.89 | )% | (1.29 | )% | ||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 235,856 | $ | 170,047 | $ | 108,202 | $ | 88,126 | $ | 73,704 | $ | 88,719 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.94 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.75 | % | 3.50 | % | 2.67 | % | 1.44 | % | 1.15 | % | 1.60 | % | ||||||||||||
Portfolio turnover rated | 6 | % | 9 | % | 14 | % | 9 | % | 32 | % | 52 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 85 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Africa Index Fund | ||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Period from Feb. 3, 2003a to Aug. 31, 2003 | ||||||||||
Net asset value, beginning of period | $ | 59.92 | $ | 46.81 | $ | 38.72 | ||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.66 | 1.23 | 0.89 | |||||||||
Net realized and unrealized gain | 21.40 | 13.24 | 7.20 | |||||||||
Total from investment operations | 22.06 | 14.47 | 8.09 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | (1.21 | ) | (1.36 | ) | — | |||||||
Total distributions | (1.21 | ) | (1.36 | ) | — | |||||||
Net asset value, end of period | $ | 80.77 | $ | 59.92 | $ | 46.81 | ||||||
Total return | 36.86 | %c | 31.30 | % | 20.89 | %c | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 149,425 | $ | 92,882 | $ | 81,914 | ||||||
Ratio of expenses to average net assetsd | 0.74 | % | 0.95 | % | 0.99 | % | ||||||
Ratio of net investment income to average net assetsd | 1.86 | % | 2.23 | % | 3.86 | % | ||||||
Portfolio turnover ratee | 3 | % | 13 | % | 17 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
86 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Korea Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2005 (Unaudited) | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Period from May 9, 2000a to Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.17 | $ | 23.06 | $ | 21.17 | $ | 13.25 | $ | 18.16 | $ | 20.36 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)b | 0.53 | 0.22 | 0.19 | (0.00 | )f | 0.09 | (0.04 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) | 9.58 | 1.13 | 1.70 | 7.92 | (4.90 | ) | (2.16 | ) | ||||||||||||||||
Total from investment operations | 10.11 | 1.35 | 1.89 | 7.92 | (4.81 | ) | (2.20 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.10 | ) | (0.24 | ) | — | — | (0.03 | ) | — | |||||||||||||||
Return of capital | — | — | — | — | (0.07 | ) | — | |||||||||||||||||
Total distributions | (0.10 | ) | (0.24 | ) | — | — | (0.10 | ) | — | |||||||||||||||
Net asset value, end of period | $ | 34.18 | $ | 24.17 | $ | 23.06 | $ | 21.17 | $ | 13.25 | $ | 18.16 | ||||||||||||
Total return | 41.92 | %c | 5.83 | % | 8.93 | % | 59.77 | % | (26.49 | )% | (10.81 | )%c | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 640,829 | $ | 315,464 | $ | 154,486 | $ | 96,336 | $ | 37,767 | $ | 13,622 | ||||||||||||
Ratio of expenses to average net assetsd | 0.74 | % | 0.94 | % | 0.99 | % | 1.00 | % | 1.01 | % | 0.99 | %g | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsd | 0.74 | % | 0.94 | % | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | 3.83 | % | 0.87 | % | 0.98 | % | (0.01 | )% | 0.64 | % | (0.63 | )%h | ||||||||||||
Portfolio turnover ratee | 4 | % | 29 | % | 39 | % | 25 | % | 39 | % | 55 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2005 would have been 3%. See Note 4. |
f | Rounds to less than $0.01. |
g | Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 1.38%. |
h | Ratio of net investment loss to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was (1.02)%. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 87 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Taiwan Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Period from to Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.66 | $ | 10.79 | $ | 8.82 | $ | 9.01 | $ | 16.41 | $ | 19.59 | ||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment income (loss)b | (0.04 | ) | 0.14 | 0.04 | (0.03 | ) | (0.03 | ) | (0.01 | ) | ||||||||||||||
Net realized and unrealized gain (loss) | 1.77 | (0.25 | ) | 1.93 | (0.16 | ) | (7.37 | ) | (2.31 | ) | ||||||||||||||
Total from investment operations | 1.73 | (0.11 | ) | 1.97 | (0.19 | ) | (7.40 | ) | (2.32 | ) | ||||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.02 | ) | — | — | — | (0.32 | ) | |||||||||||||||
Net realized gain | — | — | — | — | — | (0.10 | ) | |||||||||||||||||
Return of capital | — | — | — | — | — | (0.44 | ) | |||||||||||||||||
Total distributions | (0.08 | ) | (0.02 | ) | — | — | — | (0.86 | ) | |||||||||||||||
Net asset value, end of period | $ | 12.31 | $ | 10.66 | $ | 10.79 | $ | 8.82 | $ | 9.01 | $ | 16.41 | ||||||||||||
Total return | 16.27 | %c | (1.10 | )% | 22.45 | % | (2.11 | )% | (45.09 | )% | (12.10 | )%c | ||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 837,320 | $ | 390,228 | $ | 234,727 | $ | 142,043 | $ | 110,786 | $ | 42,667 | ||||||||||||
Ratio of expenses to average net assetsd | 0.76 | % | 1.19 | %f | 1.31 | % | 1.33 | % | 1.60 | % | 1.56 | %h | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes on stock dividendsd | 0.74 | % | 0.92 | % | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.69 | )% | 1.23 | %g | 0.43 | % | (0.28 | )% | (0.23 | )% | (0.28 | )%i | ||||||||||||
Portfolio turnover ratee | 6 | % | 19 | % | 15 | % | 11 | % | 30 | % | 52 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2005 would have been 3%. See Note 4. |
f | Ratio of expenses to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 1.22%. |
g | Ratio of net investment income to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 1.21%. |
h | Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was 2.16%. |
i | Ratio of net investment loss to average net assets prior to waived fees and reimbursed expenses for the period ended August 31, 2000 was (0.89)%. |
See notes to financial statements.
88 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited)
iSHARES®, INC.
1. SIGNIFICANT ACCOUNTING POLICIES
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to amended and restated Articles of Incorporation. As of , the Company offered 24 investment portfolios or funds.
These financial statements relate only to the iShares MSCI Australia, iShares MSCI Brazil, iShares MSCI Canada, iShares MSCI Emerging Markets, iShares MSCI Hong Kong, iShares MSCI Malaysia, iShares MSCI Mexico, iShares MSCI Pacific ex-Japan, iShares MSCI Singapore, iShares MSCI South Africa, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds (each a “Fund,” collectively the “Funds”).
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded equity securities in the aggregate in a particular market, as measured by a particular equity securities index compiled by Morgan Stanley Capital International Inc. (“MSCI”). The investment adviser utilizes a “passive” or index approach to achieve each Fund’s investment objective. Each of the Funds is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold stocks in fewer companies than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.
Each Fund invests in the securities of foreign issuers of a single country or region, which may involve certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; lesser regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war.
Under the Company’s organizational documents, the Funds’ officers and directors are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
The following significant accounting policies are consistently followed by the Company in the preparation of its financial statements 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 certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Certain prior year amounts in the financial statements have been reclassified to be consistent with the current period presentation. The reclassifications had no impact on prior year net assets, net income or distributions.
SECURITY VALUATION
The securities of each Fund are valued primarily on the basis of market prices. Debt securities maturing in 60 days or less and short-term investments are valued at amortized cost.
NOTESTOTHE FINANCIAL STATEMENTS | 89 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Securities held under a repurchase agreement are valued at a price equal to the amount of the cash investment at the time of valuation on the valuation date. The market values of the underlying securities are determined in accordance with the above discussed valuation methods, as appropriate, for the purpose of determining the adequacy of collateral.
Securities of investment companies, other than investment companies whose shares are traded on an exchange, are valued at the investment company’s published net asset value per share.
Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing policies approved by the Board of Directors of the Company (the “Board”).
SECURITY TRANSACTIONS, INCOME RECOGNITION AND EXPENSES
Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method. Common expenses incurred by the Company prior to December 28, 2001 were allocated to the Funds based on the ratio of average net assets of each Fund to the combined net assets of all funds offered by the Company, or other appropriate method. Other expenses, directly related to a specific fund, were charged to that fund. The expenses for the iShares MSCI Singapore Index Fund are still allocated to that Fund using this methodology. Additional details of the current expense structure may be found in Note 2.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions.
Foreign currencies, investment securities and assets and liabilities denominated in foreign currencies are converted into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a different rate from the rates used by MSCI may adversely affect a Fund’s ability to track its underlying index.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes.
FOREIGN TAXES
South Korea and Taiwan may levy taxes on stock dividends at rates of 16.5% and up to 20.0%, respectively, based on the par value of stock dividends received by the iShares MSCI Emerging Markets, iShares MSCI South Korea, and iShares MSCI Taiwan Index Funds. These taxes are paid by the Funds receiving the stock dividends and, if any, are disclosed in their respective Statement of Operations.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income, if any, including any net foreign currency gains, are declared and distributed at least annually by each Fund. Distributions of net realized gains, if any, generally are declared and distributed once a year. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
90 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of August 31, 2004, the tax year-end of the Funds, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
iShares MSCI Index Fund | Undistributed Ordinary Income | Unrealized Appreciation (Depreciation) | Capital and Other Losses | Net Distributable Earnings (Accumulated Losses) | |||||||||||
Australia | $ | 5,429,570 | $ | 14,568,318 | $ | (8,552,044 | ) | $ | 11,445,844 | ||||||
Brazil | 4,543,117 | 34,654,996 | (56,661,406 | ) | (17,463,293 | ) | |||||||||
Canada | 1,875,638 | 56,305,316 | (8,775,862 | ) | 49,405,092 | ||||||||||
Emerging Markets | 24,561,384 | 25,136,070 | (22,328,076 | ) | 27,369,378 | ||||||||||
Hong Kong | 8,935,684 | 35,590,687 | (15,066,533 | ) | 29,459,838 | ||||||||||
Malaysia | 2,837,795 | 34,334,322 | (28,969,579 | ) | 8,202,538 | ||||||||||
Mexico | 1,235,457 | (8,061,393 | ) | (6,797,404 | ) | (13,623,340 | ) | ||||||||
Pacific ex-Japan | 18,973,843 | 59,784,427 | (6,052,660 | ) | 72,705,610 | ||||||||||
Singapore | 4,608,572 | 17,491,740 | (17,275,947 | ) | 4,824,365 | ||||||||||
South Africa | 1,344,870 | 26,207,263 | (826,661 | ) | 26,725,472 | ||||||||||
South Korea | 1,634,773 | 43,579,808 | (15,981,504 | ) | 29,233,077 | ||||||||||
Taiwan | 4,632,113 | (8,554,539 | ) | (42,433,907 | ) | (46,356,333 | ) |
For the six months ended February 28, 2005 and for the year ended August 31, 2004, the tax characterization of distributions paid for each Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for all Funds.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its net income and any net gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the six months ended February 28, 2005.
NOTESTOTHE FINANCIAL STATEMENTS | 91 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The Funds had tax basis net capital loss carryforwards as of August 31, 2004, the tax year-end of the Funds, as follows:
iShares MSCI Index Fund | Expiring 2007 | Expiring 2008 | Expiring 2009 | Expiring 2010 | Expiring 2011 | Expiring 2012 | Total | ||||||||||||||
Australia | $ | 674,889 | $ | 630,985 | $ | 1,971,994 | $ | 3,625,203 | $ | 650,082 | $ | 596,240 | $ | 8,149,393 | |||||||
Brazil | — | — | — | — | 56,661,406 | — | 56,661,406 | ||||||||||||||
Canada | — | — | — | 780,114 | 21,276 | 2,463,817 | 3,265,207 | ||||||||||||||
Emerging Markets | — | — | — | — | — | 840,778 | 840,778 | ||||||||||||||
Hong Kong | 4,085,707 | — | — | 4,971,970 | 2,870,602 | 2,330,414 | 14,258,693 | ||||||||||||||
Malaysia | 8,654,333 | — | — | 9,819,029 | 2,898,105 | 775,477 | 22,146,944 | ||||||||||||||
Mexico | — | — | — | 1,319,032 | 2,329,290 | 3,136,170 | 6,784,492 | ||||||||||||||
Pacific ex-Japan | — | — | — | — | 329,461 | 2,563,114 | 2,892,575 | ||||||||||||||
Singapore | — | — | — | 4,810,766 | 4,428,316 | 4,256,421 | 13,495,503 | ||||||||||||||
South Africa | — | — | — | — | — | 693,601 | 693,601 | ||||||||||||||
South Korea | — | — | 556,540 | 666,642 | 504,041 | 3,363,449 | 5,090,672 | ||||||||||||||
Taiwan | — | — | — | 12,532,361 | 8,689,663 | 9,129,874 | 30,351,898 |
Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year, or until their respective expiration dates, whichever occurs first.
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies”. The Funds may elect to mark-to-market annually the shares of each passive foreign investment company, and would be required to distribute to shareholders any such mark-to-market gains.
As of February 28, 2005, the aggregate unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
iShares MSCI Index Fund | Tax Cost | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation | |||||||||
Australia | $ | 316,887,521 | $ | 49,675,676 | $ | (133,456 | ) | $ | 49,542,220 | ||||
Brazil | 310,665,227 | 165,929,750 | (1,000,867 | ) | 164,928,883 | ||||||||
Canada | 238,664,198 | 80,075,802 | (5,271,513 | ) | 74,804,289 | ||||||||
Emerging Markets | 4,268,275,406 | 1,036,880,560 | (22,499,242 | ) | 1,014,381,318 | ||||||||
Hong Kong | 667,343,833 | 91,310,546 | (7,417,636 | ) | 83,892,910 | ||||||||
Malaysia | 265,422,422 | 57,812,991 | (2,311,723 | ) | 55,501,268 | ||||||||
Mexico | 235,006,795 | 48,641,530 | (370,155 | ) | 48,271,375 | ||||||||
Pacific ex-Japan | 1,068,469,578 | 247,429,959 | (1,273,958 | ) | 246,156,001 | ||||||||
Singapore | 219,151,114 | 44,595,675 | (1,872,706 | ) | 42,722,969 | ||||||||
South Africa | 97,354,280 | 53,480,208 | (1,390,502 | ) | 52,089,706 | ||||||||
South Korea | 436,116,888 | 197,833,052 | (1,962,675 | ) | 195,870,377 | ||||||||
Taiwan | 749,805,280 | 101,426,337 | (14,851,023 | ) | 86,575,314 |
92 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
REPURCHASE AGREEMENTS
Each Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as an investment by the Fund, collateralized by securities, which are delivered to the Fund’s custodian or to an agent bank under a tri-party agreement. The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. As of February 28, 2005, a portion of the cash collateral for securities on loan for certain Funds was invested in repurchase agreements as disclosed in each Fund’s Schedule of Investments. For further information, see Note 5, below.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Agreement with the Company, as amended, Barclays Global Fund Advisors (“BGFA”) manages the investment of each Fund’s assets. BGFA is a California corporation indirectly owned by Barclays Bank PLC. Under the Investment Advisory Agreement, BGFA is responsible for all of the expenses (“Covered Expenses”) of each of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees and extraordinary expenses.
Prior to December 28, 2001 and pursuant to the prior investment advisory agreement, the investment advisory fee earned by and paid to BGFA with respect to each Fund was reduced by the aggregate of such Fund’s fees and expenses (subject to the exceptions in the prior sentence). BGFA also agreed to reimburse each Fund to the extent that the expenses of any Fund (subject to the same exceptions) exceeded the investment advisory fee as stated in the investment advisory fee tables below. These fee reduction and reimbursement provisions still apply to the iShares MSCI Singapore Index Fund.
For its investment advisory services to the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Hong Kong, iShares MSCI Malaysia, iShares MSCI Mexico and iShares MSCI Singapore Index Funds, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate net assets of all the funds offered by the Company (except for the iShares MSCI Brazil, iShares MSCI Emerging Markets, iShares MSCI Pacific ex-Japan, iShares MSCI South Africa, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds) as follows:
Investment Advisory Fee | Aggregate Net Assets | |
0.59% | First $7 billion | |
0.54 | Over $7 billion, up to and including $11 billion | |
0.49 | Over $11 billion |
For its investment advisory services to the iShares MSCI Brazil, iShares MSCI South Africa, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate net assets of these four Funds as follows:
Investment Advisory Fee | Aggregate Net Assets | |
0.74% | First $2 billion | |
0.69 | Over $2 billion, up to and including $4 billion | |
0.64 | Over $4 billion |
For its investment advisory services to the iShares MSCI Pacific ex-Japan Index Fund, BGFA is entitled to an annual investment advisory fee based on the average daily net assets of the Fund of 0.50%. For its investment advisory services to the iShares MSCI Emerging Markets Index Fund, BGFA is entitled to an annual investment advisory fee based on the average daily net assets of the Fund excluding any investments in other iShares Funds, of 0.75%.
NOTESTOTHE FINANCIAL STATEMENTS | 93 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Barclays Global Investors, N.A. (“BGI”) has a license agreement with MSCI for the use of the relevant MSCI indices. Under a sub-license agreement between BGI and the Funds, except for the iShares MSCI Singapore Index Fund, the fees for the use of such MSCI indices are paid directly by BGI to MSCI.
Investors Bank & Trust Company (“Investors Bank”) serves as administrator, custodian and transfer agent for the Company. As compensation for its services, Investors Bank receives certain out-of-pocket costs, transaction fees, and asset-based fees, which are accrued daily and paid monthly. These fees are Covered Expenses as defined above.
BGI serves as securities lending agent for the Company. BGI is an affiliate of BGFA, the Funds’ investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 28, 2005, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Australia | $ | 19,583 | |
Brazil | 329 | ||
Emerging Markets | 1,583,137 | ||
Hong Kong | 99,535 | ||
Mexico | 348 | ||
Pacific ex-Japan | 109,594 | ||
Singapore | 30,460 |
SEI Investments Distribution Company (the “Distributor”) serves as each Fund’s underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the Company. The Distributor does not receive a fee from the Funds for its distribution services.
Pursuant to Rule 17a-7 under the 1940 Act, certain Funds executed cross trades for the six months ended February 28, 2005. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. The Board reviewed all such transactions executed during the first four months of the fiscal half-year and concluded that they were in compliance with the requirements and restrictions set forth in Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the last two months of the fiscal half-year.
Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission, each Fund may invest in the Institutional Shares of the Government Money Market Fund (“GMMF”), Institutional Money Market Fund (“IMMF”), and Prime Money Market Fund (“PMMF”) of Barclays Global Investors Funds. The GMMF, IMMF and PMMF are feeder funds in a master/feeder fund structure that invest substantially all of their assets in the Government Money Market Master Portfolio, Money Market Master Portfolio, and Prime Money Market Master Portfolio (collectively, the “Master Portfolios”), respectively, which are managed by BGFA, the Funds’ investment adviser. The GMMF, IMMF and PMMF are open-end money market funds available to institutional and accredited investors, including other investment companies managed by BGFA. The GMMF, IMMF and PMMF seek a high level of income consistent with liquidity and the preservation of capital. While the GMMF, IMMF and PMMF do not directly charge an investment advisory fee, the Master Portfolios in which they invest do charge an investment advisory fee. Income distributions from the GMMF, IMMF and PMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments or from investment of securities lending collateral are recorded as either interest from affiliated issuers or securities lending income, respectively, in the accompanying Statements of Operations.
94 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The iShares MSCI Emerging Markets Index Fund, in order to improve its portfolio liquidity and its ability to track the MSCI Emerging Markets Index, may invest in shares of other iShares Funds that invest in securities in the Fund’s benchmark index. As of February 28, 2005, the iShares MSCI Emerging Markets Index Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.
The following table provides information about the investment by each Fund in shares of issuers of which BGFA is an affiliate for the six months ended February 28, 2005, including income earned from these affiliated issuers and net realized gains (losses) from sales of these affiliated issuers.
iShares MSCI Index Fund | Number of Shares Held Beginning of Period (in 000s) | Gross Additions (in 000s) | Gross Reductions (in 000s) | Number of Shares Held End of Period (in 000s) | Value at End of Period | Dividend and Interest Income | Net Realized Loss | |||||||||||
Australia | ||||||||||||||||||
IMMF | 120 | 12,180 | 12,216 | 84 | $ | 84,351 | $ | 1,349 | $ | — | ||||||||
Brazil | ||||||||||||||||||
IMMF | 981 | 50,541 | 50,181 | 1,341 | 1,341,371 | 12,072 | — | |||||||||||
Canada | ||||||||||||||||||
IMMF | 199 | 7,121 | 7,171 | 149 | 149,431 | 1,575 | — | |||||||||||
Emerging Markets | ||||||||||||||||||
IMMF | 5,432 | 222,765 | 222,098 | 6,099 | 6,099,281 | 60,909 | — | |||||||||||
iShares MSCI Malaysia Index Fund | 851 | 345 | 226 | 970 | 6,955,366 | 143,660 | (43,315 | ) | ||||||||||
iShares MSCI South Korea Index Fund | 299 | 160 | 64 | 395 | 13,562,307 | 37,162 | (99,906 | ) | ||||||||||
iShares MSCI Taiwan Index Fund | 965 | 700 | 198 | 1,467 | 18,247,191 | 99,495 | (223,789 | ) | ||||||||||
Hong Kong | ||||||||||||||||||
IMMF | 213 | 23,949 | 23,854 | 308 | 308,472 | 2,842 | — | |||||||||||
Malaysia | ||||||||||||||||||
IMMF | 394 | 21,977 | 21,984 | 387 | 387,127 | 5,723 | — | |||||||||||
Mexico | ||||||||||||||||||
IMMF | 85 | 5,607 | 5,582 | 110 | 110,395 | 916 | — | |||||||||||
Pacific ex-Japan | ||||||||||||||||||
IMMF | 308 | 43,161 | 42,563 | 906 | 906,283 | 5,075 | — | |||||||||||
Singapore | ||||||||||||||||||
IMMF | 87 | 8,529 | 8,539 | 77 | 76,557 | 1,258 | — | |||||||||||
South Africa | ||||||||||||||||||
IMMF | 58 | 4,150 | 4,122 | 86 | 86,044 | 663 | — | |||||||||||
South Korea | ||||||||||||||||||
IMMF | 721 | 21,118 | 19,949 | 1,890 | 1,890,374 | 5,028 | — | |||||||||||
Taiwan | ||||||||||||||||||
IMMF | 366 | 21,207 | 21,011 | 562 | 561,843 | 4,309 | — |
NOTESTOTHE FINANCIAL STATEMENTS | 95 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
During the six months ended February 28, 2005, certain Funds invested cash collateral from securities on loan in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account used for the investment of the collateral for securities on loan, the information reported above for these Funds does not include the Funds’ holdings of the GMMF, IMMF and PMMF in connection with the investment of collateral for securities on loan.
As of February 28, 2005, certain directors and officers of the Company are also officers of BGI.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2005, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Australia | $ | 25,063,425 | $ | 30,396,293 | ||
Brazil | 165,992,186 | 40,475,318 | ||||
Canada | 7,575,367 | 11,630,042 | ||||
Emerging Markets | 249,541,719 | 255,950,602 | ||||
Hong Kong | 18,586,092 | 27,198,388 | ||||
Malaysia | 89,083,253 | 13,504,776 | ||||
Mexico | 10,835,577 | 12,161,747 | ||||
Pacific ex-Japan | 63,169,142 | 80,570,491 | ||||
Singapore | 11,384,968 | 15,280,225 | ||||
South Africa | 3,624,422 | 5,037,124 | ||||
South Korea | 182,258,710 | 18,719,568 | ||||
Taiwan | 389,749,167 | 35,690,751 |
In-kind transactions (see Note 4) for the six months ended February 28, 2005, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Australia | $ | 176,534,176 | $ | 73,633,336 | ||
Canada | 54,102,114 | 131,146,178 | ||||
Emerging Markets | 1,669,435,247 | 42,663,041 | ||||
Hong Kong | 168,447,399 | 20,585,022 | ||||
Mexico | 129,748,217 | 41,658,807 | ||||
Pacific ex-Japan | 351,937,894 | — | ||||
Singapore | 44,493,056 | — | ||||
South Africa | 51,609,334 | 29,065,671 |
96 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
4. CAPITAL SHARE TRANSACTIONS
The Company has authorized 10.9 billion shares of $.001 par value capital stock. The number of shares authorized to each Fund are as follows:
iShares MSCI Index Fund | Authorized Shares | iShares MSCI Index Fund | Authorized Shares | |||||
Australia | 127,800,000 | Mexico | 255,000,000 | |||||
Brazil | 500,000,000 | Pacific ex-Japan | 500,000,000 | |||||
Canada | 340,200,000 | Singapore | 191,400,000 | |||||
Emerging Markets | 500,000,000 | South Africa | 200,000,000 | |||||
Hong Kong | 191,400,000 | South Korea | 200,000,000 | |||||
Malaysia | 127,800,000 | Taiwan | 200,000,000 |
The Company issues and redeems capital shares of each Fund only in aggregations of a specified number of shares (each, a “Creation Unit”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.
The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of equity securities constituting a portfolio sampling representation of the corresponding MSCI Index and an amount of cash (except for the iShares MSCI Brazil, iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds which are offered in Creation Units solely for cash in U.S. dollars). A purchase transaction fee and a redemption transaction fee are charged to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash.
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 105% of the market value of the loaned securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Funds of securities lending are that the borrower may not provide additional collateral when required, or may not return the securities when due.
As of February 28, 2005, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to each Fund, based on each Fund’s portion of the total cash collateral received. The market value of the securities on loan as of February 28, 2005 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, which is disclosed in the Funds’ Statements of Operations, is presented net of rebates paid to, or fees paid by, borrowers.
NOTESTOTHE FINANCIAL STATEMENTS | 97 |
Table of Contents
The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call iShares at 1-800-iShares (1-800-474-2737) to obtain a prospectus for any iShares Fund. The prospectus contains more complete information, including charges, expenses, investment objectives and risk factors that should be carefully considered to determine if the Fund(s) are an appropriate investment for you. Read the prospectus(es) carefully before investing. Investing involves risk, including possible loss of principal.
iShares S&P Domestic Index Funds
iShares S&P 1500 (ISI)
iShares S&P 500 (IVV)
iShares S&P 500/BARRA Growth (IVW)
iShares S&P 500/BARRA Value (IVE)
iShares S&P MidCap 400 (IJH)
iShares S&P MidCap 400/BARRA Growth (IJK)
iShares S&P MidCap 400/BARRA Value (IJJ)
iShares S&P SmallCap 600 (IJR)
iShares S&P SmallCap 600/BARRA Growth (IJT)
iShares S&P SmallCap 600/BARRA Value (IJS)
iShares S&P 100 (OEF)
iShares Sector and Specialty Index Funds
iShares Cohen & Steers Realty Majors (ICF)
iShares Dow Jones Select Dividend (DVY)
iShares Dow Jones Transportation Average (IYT)
iShares Dow Jones U.S. Basic Materials Sector (IYM)
iShares Dow Jones U.S. Consumer Cyclical Sector (IYC)
iShares Dow Jones U.S. Consumer Non-Cyclical Sector (IYK)
iShares Dow Jones U.S. Energy Sector (IYE)
iShares Dow Jones U.S. Financial Sector (IYF)
iShares Dow Jones U.S. Financial Services (IYG)
iShares Dow Jones U.S. Healthcare Sector (IYH)
iShares Dow Jones U.S. Industrial Sector (IYJ)
iShares Dow Jones U.S. Real Estate (IYR)
iShares Dow Jones U.S. Technology Sector (IYW)
iShares Dow Jones U.S. Telecommunications Sector (IYZ)
iShares Dow Jones U.S. Total Market (IYY)
iShares Dow Jones U.S. Utilities Sector (IDU)
iShares Goldman Sachs Natural Resources (IGE)
iShares Goldman Sachs Networking (IGN)
iShares Goldman Sachs Semiconductor (IGW)
iShares Goldman Sachs Software (IGV)
iShares Goldman Sachs Technology (IGM)
iShares KLD Select SocialSM (KLD)
iShares Nasdaq Biotechnology (IBB)
iShares S&P Global Energy Sector (IXC)
iShares S&P Global Financials Sector (IXG)
iShares S&P Global Healthcare Sector (IXJ)
iShares S&P Global Technology Sector (IXN)
iShares S&P Global Telecommunications Sector (IXP)
iShares Russell Index Funds
iShares Russell 3000 (IWV)
iShares Russell 3000 Growth (IWZ)
iShares Russell 3000 Value (IWW)
iShares Russell 1000 (IWB)
iShares Russell 1000 Growth (IWF)
iShares Russell 1000 Value (IWD)
iShares Russell Midcap (IWR)
iShares Russell Midcap Growth (IWP)
iShares Russell Midcap Value (IWS)
iShares Russell 2000 (IWM)
iShares Russell 2000 Growth (IWO)
iShares Russell 2000 Value (IWN)
iShares International Index Funds
iShares FTSE/Xinhua China 25 (FXI)
iShares MSCI Australia (EWA)
iShares MSCI Austria (EWO)
iShares MSCI Belgium (EWK)
iShares MSCI Brazil (EWZ)
iShares MSCI Canada (EWC)
iShares MSCI EAFE (EFA)
iShares MSCI Emerging Markets (EEM)
iShares MSCI EMU (EZU)
iShares MSCI France (EWQ)
iShares MSCI Germany (EWG)
iShares MSCI Hong Kong (EWH)
iShares MSCI Italy (EWI)
iShares MSCI Japan (EWJ)
iShares MSCI Malaysia (EWM)
iShares MSCI Mexico (EWW)
iShares MSCI Netherlands (EWN)
iShares MSCI Pacific ex-Japan (EPP)
iShares MSCI Singapore (EWS)
iShares MSCI South Africa (EZA)
iShares MSCI South Korea (EWY)
iShares MSCI Spain (EWP)
iShares MSCI Sweden (EWD)
iShares MSCI Switzerland (EWL)
iShares MSCI Taiwan (EWT)
iShares MSCI United Kingdom (EWU)
iShares S&P Europe 350 (IEV)
iShares S&P Global 100 (IOO)
iShares S&P Latin America 40 (ILF)
iShares S&P/TOPIX 150 (ITF)
iShares Bond Funds
iShares GS $ InvesTop™ Corporate (LQD)
iShares Lehman Aggregate (AGG)
iShares Lehman TIPS (TIP)
iShares Lehman 1-3 Year Treasury (SHY)
iShares Lehman 7-10 Year Treasury (IEF)
iShares Lehman 20+ Year Treasury (TLT)
iShares NYSE Index Funds
iShares NYSE 100 (NY)
iShares NYSE Composite (NYC)
iShares Morningstar Index Funds
iShares Morningstar Large Core (JKD)
iShares Morningstar Large Growth (JKE)
iShares Morningstar Large Value (JKF)
iShares Morningstar Mid Core (JKG)
iShares Morningstar Mid Growth (JKH)
iShares Morningstar Mid Value (JKI)
iShares Morningstar Small Core (JKJ)
iShares Morningstar Small Growth (JKK)
iShares Morningstar Small Value (JKL)
iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by Goldman, Sachs & Co. or Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., FTSE/Xinhua Index Limited, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The Nasdaq Stock Market, Inc., New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. “GS $ InvesTop™” and “Goldman Sachs®” are trademarks of Goldman, Sachs & Co.
An investment in the Fund(s) is not a deposit of a bank and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
This advertising section does not constitute part of the 2005 Semi-Annual Report.
1667-iS-0305
98 | 2005 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS |
Table of Contents
The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an adviser to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., a wholly owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morgan Stanley Capital International, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds.
©2005 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Investing involves risk, including possible loss of principal.
A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, 2004 is available without charge, upon request, by calling toll-free 1 800 474 2737; on the Funds’ website at www.iShares.com; and on the Securities and Exchange Commission’s website at www.sec.gov.
The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q, which when filed, will be available on the Commission’s website at www.sec.gov. When filed, the Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1 800 SEC 0330. The Funds also disclose their complete schedules of portfolio holdings on a daily and monthly basis on the Funds’ website at www.iShares.com.
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
BGI-F-035-02005
BARCLAYS GLOBAL INVESTORS | ![]() |
Table of Contents
iShares®
2005 SEMI-ANNUAL REPORT TO SHAREHOLDERS | FEBRUARY 28, 2005
iSHARES MSCI SERIES
Electronic delivery of this document may be
available to you. See inside for details.
iSHARESMSCIJAPANINDEXFUND
Table of Contents
Dear iShares Shareholder:
Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.
To sign up for electronic delivery, please follow these simple steps:
1. | Go to www.icsdelivery.com. |
2. | From the main page, select the first letter of your brokerage firm’s name. |
3. | Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser. |
4. | Fill out the appropriate information and provide the e-mail address where you would like your information sent. |
Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.
Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.
Table of Contents
1 | ||
2 | ||
3 | ||
12 | ||
15 | ||
16 | ||
22 |
Table of Contents
iSHARES® MSCI JAPAN INDEX FUND
Performance as of 2/28/05
The iShares MSCI Japan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Japanese market, as measured by the MSCI Japan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which have a similar investment profile as the Index. For the six months ended February 28, 2005, the Fund returned 9.75%, while the Index returned 10.09%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
12.83% | 11.90% | 13.79% | (5.71)% | (5.86)% | (5.21)% | (2.91)% | (2.91)% | (2.16)% |
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/05 | Five Years Ended 2/28/05 | Inception to 2/28/05 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
12.83% | 11.90% | 13.79% | (25.45)% | (26.06)% | (23.47)% | (23.24)% | (23.26)% | (17.81)% |
Total returns for the periods since inception are calculated from the inception date of the Fund (3/12/96). “Average annual total returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative total returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/18/96), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the Index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION
As of 2/28/05
Sector | % of Net Assets | ||
Consumer Cyclical | 24.72 | % | |
Industrial | 21.02 | ||
Financial | 17.97 | ||
Consumer Non-Cyclical | 11.45 | ||
Basic Materials | 7.48 | ||
Technology | 5.97 | ||
Utilities | 5.18 | ||
Communications | 5.10 | ||
Energy | 1.04 | ||
Short-Term and Other Net Assets | 0.07 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS
As of 2/28/05
Security | % of Net Assets | ||
Toyota Motor Corp. | 5.78 | % | |
Canon Inc. | 2.29 | ||
Takeda Pharmaceutical Co. Ltd. | 2.22 | ||
Mitsubishi Tokyo Financial Group Inc. | 2.12 | ||
Honda Motor Co. Ltd. | 2.07 | ||
Mizuho Financial Group Inc. | 1.88 | ||
Sony Corp. | 1.83 | ||
NTT DoCoMo Inc. | 1.71 | ||
Matsushita Electric Industrial Co. Ltd. | 1.62 | ||
Sumitomo Mitsui Financial Group Inc. | 1.50 | ||
TOTAL | 23.02 | % | |
FUND PERFORMANCE OVERVIEW | 1 |
Table of Contents
iSHARES® MSCI JAPAN INDEX FUND
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and (2) ongoing costs, including management fees and other fund expenses. The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2004 to February 28, 2005.
Actual Expenses
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value (September 1, 2004) | Ending Account Value (February 28, 2005) | Annualized Expense Ratio | Expenses Paid During Period* (September 1, 2004 to February 28, 2005) | |||||||||
Actual | $ | 1,000.00 | $ | 1,097.50 | 0.58 | % | $ | 3.02 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 |
* | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days), and divided by the number of days in the year (365 days). |
2 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
COMMON STOCKS – 99.93% | |||||
ADVERTISING – 0.25% | |||||
Asatsu-DK Inc.1 | 106,600 | $ | 3,209,699 | ||
Dentsu Inc.1 | 5,330 | 14,208,563 | |||
17,418,262 | |||||
AGRICULTURE – 0.51% | |||||
Japan Tobacco Inc. | 3,198 | 34,959,199 | |||
34,959,199 | |||||
AIRLINES – 0.21% | |||||
All Nippon Airways Co. Ltd.1 | 2,125,000 | 7,906,219 | |||
Japan Airlines System Corp.1,2 | 2,132,000 | 6,439,852 | |||
14,346,071 | |||||
APPAREL – 0.36% | |||||
Gunze Ltd. | 1,066,000 | 4,957,664 | |||
Onward Kashiyama Co. Ltd. | 1,066,000 | 15,772,527 | |||
World Co. Ltd. | 106,600 | 3,915,022 | |||
24,645,213 | |||||
AUTO MANUFACTURERS – 9.33% | |||||
Hino Motors Ltd.1 | 1,066,000 | 6,838,510 | |||
Honda Motor Co. Ltd. | 2,665,100 | 143,368,759 | |||
Nissan Motors Co. Ltd.1 | 8,847,800 | 95,447,811 | |||
Toyota Motor Corp. | 10,233,600 | 399,393,508 | |||
645,048,588 | |||||
AUTO PARTS & EQUIPMENT – 1.62% | |||||
Aisin Seiki Co. Ltd.1 | 319,800 | 7,237,167 | |||
Bridgestone Corp. | 2,132,000 | 40,806,175 | |||
Denso Corp. | 2,025,400 | 51,953,253 | |||
NOK Corp.1 | 319,800 | 7,942,485 | |||
Toyoda Gosei Co. Ltd.1 | 213,200 | 4,031,552 | |||
111,970,632 | |||||
BANKS – 9.71% | |||||
Bank of Fukuoka Ltd.1 | 2,132,000 | 12,920,592 | |||
Bank of Yokohama Ltd. (The) | 4,264,000 | 26,331,841 | |||
Chiba Bank Ltd. (The) | 2,132,000 | 13,779,240 | |||
Gunma Bank Ltd. | 1,066,000 | 6,133,193 | |||
Joyo Bank Ltd. | 3,198,000 | 17,142,273 | |||
Kokuhoku Financial Group Inc. | 2,132,000 | 6,746,512 | |||
Mitsubishi Tokyo Financial Group Inc.1 | 15,990 | 146,276,646 | |||
Mitsui Trust Holdings Inc.1 | 2,132,000 | 22,611,037 | |||
Mizuho Financial Group Inc. | 26,650 | 130,330,345 | |||
Resona Holdings Inc.2 | 14,924,000 | 30,625,076 | |||
77 Bank Ltd. (The) | 1,066,000 | 7,554,049 | |||
Shinsei Bank Ltd.1 | 3,198,000 | 18,798,236 | |||
Shizuoka Bank Ltd. (The) | 2,132,000 | 21,793,278 | |||
Sumitomo Mitsui Financial Group Inc.1 | 14,917 | 103,847,553 | |||
Sumitomo Trust & Banking Co. Ltd. (The) | 4,264,000 | 29,398,437 | |||
UFJ Holdings Inc.2 | 13,858 | 76,808,016 | |||
671,096,324 | |||||
BEVERAGES – 1.01% | |||||
Asahi Breweries Ltd. | 1,066,000 | 13,901,904 | |||
Coca-Cola West Japan Co. Ltd. | 213,200 | 4,988,330 | |||
Ito En Ltd.1 | 106,600 | 5,550,539 | |||
Kirin Brewery Co. Ltd.1 | 3,198,000 | 32,628,585 | |||
Sapporo Breweries Ltd.1 | 1,066,000 | 4,947,442 | |||
Takara Holdings Inc.1 | 1,066,000 | 8,003,816 | |||
70,020,616 | |||||
BUILDING MATERIALS – 1.45% | |||||
Asahi Glass Co. Ltd.1 | 3,198,000 | 35,327,190 | |||
Daikin Industries Ltd.1 | 746,200 | 18,675,572 | |||
JS Group Corp. | 1,066,000 | 19,544,440 | |||
Matsushita Electric Works Ltd. | 1,066,000 | 9,649,556 | |||
Nippon Sheet Glass Co. Ltd.1 | 1,066,000 | 4,753,224 | |||
Sumitomo Osaka Cement Co. Ltd.1 | 1,066,000 | 2,882,601 | |||
Taiheiyo Cement Corp. | 3,198,000 | 9,598,446 | |||
100,431,029 | |||||
CHEMICALS – 4.01% | |||||
Asahi Kasei Corp.1 | 4,264,000 | 22,651,925 | |||
Daicel Chemical Industries Ltd. | 1,066,000 | 5,918,531 | |||
Dainippon Ink & Chemical Inc. | 2,132,000 | 6,010,529 | |||
Denki Kagaku Kogyo Kabushiki Kaisha | 2,132,000 | 7,646,047 | |||
Ishihara Sangyo Kaisha Ltd.1 | 1,066,000 | 2,565,719 | |||
JSR Corp.1 | 746,200 | 15,598,753 | |||
Kaneka Corp. | 1,066,000 | 12,164,165 | |||
Mitsubishi Chemical Corp. | 6,396,000 | 21,772,834 | |||
Mitsubishi Gas Chemical Co. Inc. | 1,066,000 | 5,530,095 | |||
Mitsui Chemicals Inc. | 2,132,000 | 12,429,937 | |||
Nippon Kayaku Co. Ltd.1 | 1,066,000 | 6,419,409 |
SCHEDULEOF INVESTMENTS | 3 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
Nippon Shokubai Co. Ltd. | 1,066,000 | $ | 9,956,216 | ||
Nissan Chemical Industries Ltd. | 1,066,000 | 9,618,891 | |||
Nitto Denko Corp.1 | 533,000 | 29,183,775 | |||
Shin-Etsu Chemical Co. Ltd. | 1,172,600 | 48,012,677 | |||
Showa Denko K.K.1 | 3,198,000 | 8,371,808 | |||
Sumitomo Bakelite Co. Ltd.1 | 1,066,000 | 7,012,284 | |||
Sumitomo Chemical Co. Ltd. | 4,264,000 | 22,815,477 | |||
Taiyo Nippon Sanso Corp.1 | 1,066,000 | 6,654,514 | |||
Tosoh Corp.1 | 2,132,000 | 11,223,743 | |||
Ube Industries Ltd.1,2 | 3,198,000 | 6,010,528 | |||
277,567,857 | |||||
COMMERCIAL SERVICES – 1.15% | |||||
Benesse Corp.1 | 213,200 | 7,339,387 | |||
Dai Nippon Printing Co. Ltd. | 2,132,000 | 36,001,841 | |||
Kamigumi Co. Ltd. | 1,066,000 | 8,658,024 | |||
TIS Inc.1 | 106,600 | 4,507,897 | |||
Toppan Printing Co. Ltd. | 2,132,000 | 22,692,813 | |||
79,199,962 | |||||
COMPUTERS – 1.40% | |||||
CSK Corp.1 | 213,200 | 9,649,556 | |||
Fujitsu Ltd. | 6,396,000 | 42,196,366 | |||
Itochu Techno-Science Corp.1 | 106,600 | 4,068,351 | |||
Meitec Corp.1 | 106,600 | 3,669,694 | |||
NET One Systems Co. Ltd.1 | 2,132 | 6,460,296 | |||
TDK Corp. | 426,400 | 30,952,179 | |||
96,996,442 | |||||
COSMETICS & PERSONAL CARE – 1.16% | |||||
Aderans Co. Ltd.1 | 106,600 | 2,529,942 | |||
Kanebo Ltd.1,2 | 214,000 | 2,671,794 | |||
Kao Corp. | 2,132,000 | 50,701,060 | |||
Shiseido Co. Ltd.1 | 1,066,000 | 14,556,111 | |||
Uni-Charm Corp.1 | 213,200 | 9,506,449 | |||
79,965,356 | |||||
DISTRIBUTION & WHOLESALE – 2.41% | |||||
Itochu Corp.2 | 5,330,000 | 28,212,686 | |||
Marubeni Corp. | 5,330,000 | 17,172,940 | |||
Mitsubishi Corp.1 | 4,264,000 | 58,265,331 | |||
Mitsui & Co. Ltd.1 | 4,264,000 | 43,586,556 | |||
Sumitomo Corp. | 2,132,000 | 19,360,445 | |||
166,597,958 | |||||
DIVERSIFIED FINANCIAL SERVICES – 4.26% | |||||
ACOM Co. Ltd. | 245,180 | 16,904,101 | |||
Aeon Credit Service Co. Ltd.1 | 106,690 | 7,233,047 | |||
AIFUL Corp. | 159,900 | 18,368,912 | |||
Credit Saison Co. Ltd.1 | 533,000 | 18,910,678 | |||
Daiwa Securities Group Inc. | 4,264,000 | 29,153,109 | |||
Nikko Cordial Corp.1 | 5,330,000 | 26,526,058 | |||
Nomura Holdings Inc. | 6,396,000 | 88,501,971 | |||
ORIX Corp.1 | 319,800 | 41,644,378 | |||
Promise Co. Ltd. | 319,800 | 22,355,487 | |||
Takefuji Corp. | 351,150 | 25,085,750 | |||
294,683,491 | |||||
ELECTRIC – 4.29% | |||||
Chubu Electric Power Co. Inc.1 | 2,451,800 | 58,776,430 | |||
Electric Power Development Co. Ltd.2 | 533,000 | 17,070,720 | |||
Kansai Electric Power Co. Inc. (The) | 2,665,000 | 53,282,112 | |||
Kyushu Electric Power Co. Inc. | 1,599,000 | 34,805,869 | |||
Tohoku Electric Power Co. Inc.1 | 1,812,200 | 33,503,587 | |||
Tokyo Electric Power Co. Inc. (The) | 4,050,800 | 99,439,497 | |||
296,878,215 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 4.15% | |||||
Casio Computer Co. Ltd.1 | 1,066,000 | 13,973,457 | |||
Fujikura Ltd.1 | 1,066,000 | 5,008,774 | |||
Furukawa Electric Co. Ltd.1,2 | 2,132,000 | 10,978,415 | |||
Hitachi Cable Ltd. | 1,066,000 | 4,599,895 | |||
Hitachi Ltd. | 10,660,000 | 67,771,780 | |||
Mitsubishi Electric Corp. | 6,396,000 | 33,671,228 | |||
SANYO Electric Co. Ltd.1 | 5,330,000 | 17,990,699 | |||
Sharp Corp. | 3,198,000 | 51,120,161 | |||
Stanley Electric Co. Ltd.1 | 746,200 | 11,591,734 | |||
Sumitomo Electric Industries Ltd. | 2,132,000 | 23,551,460 | |||
Toshiba Corp.1 | 10,660,000 | 47,021,144 | |||
287,278,747 | |||||
ELECTRONICS – 5.21% | |||||
Advantest Corp.1 | 319,800 | 27,814,029 | |||
Alps Electric Co. Ltd.1 | 1,066,000 | 16,334,737 | |||
Dainippon Screen Manufacturing Co. Ltd.1 | 1,066,000 | 7,094,059 | |||
Fanuc Ltd. | 533,000 | 35,163,638 | |||
Hirose Electric Co. Ltd.1 | 106,600 | 11,857,506 | |||
Keyence Corp. | 106,620 | 25,907,377 |
4 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
Kyocera Corp. | 639,600 | $ | 47,961,567 | ||
Mabuchi Motor Co. Ltd. | 106,600 | 6,756,734 | |||
Minebea Co. Ltd.1 | 1,066,000 | 4,886,110 | |||
Murata Manufacturing Co. Ltd. | 852,800 | 47,266,472 | |||
NEC Corp. | 6,396,000 | 41,644,378 | |||
NGK Insulators Ltd.1 | 1,066,000 | 11,162,411 | |||
Omron Corp. | 852,800 | 19,871,544 | |||
Secom Co. Ltd. | 1,066,000 | 44,158,987 | |||
Yokogawa Electric Corp.1 | 852,800 | 12,339,984 | |||
360,219,533 | |||||
ENGINEERING & CONSTRUCTION – 0.94 % | |||||
Kajima Corp.1 | 3,198,000 | 13,217,031 | |||
Nishimatsu Construction Co. Ltd.1 | 1,066,000 | 4,150,127 | |||
Obayashi Corp. | 2,132,000 | 13,554,356 | |||
Okumura Corp.1 | 1,066,000 | 6,736,290 | |||
Shimizu Corp.1 | 2,132,000 | 10,508,203 | |||
Taisei Corp.1 | 3,198,000 | 11,867,728 | |||
Toda Corp. | 1,066,000 | 5,264,324 | |||
65,298,059 | |||||
ENTERTAINMENT – 0.38% | |||||
Oriental Land Co. Ltd.1 | 213,200 | 14,024,567 | |||
Toho Co. Ltd.1 | 746,200 | 12,092,611 | |||
26,117,178 | |||||
FOOD – 1.40% | |||||
Ajinomoto Co. Inc. | 2,132,000 | 26,352,285 | |||
Ariake Japan Co. Ltd.1 | 113,330 | 2,711,400 | |||
Katokichi Co. Ltd. | 213,200 | 4,375,011 | |||
Kikkoman Corp.1 | 1,066,000 | 11,080,635 | |||
Meiji Dairies Corp.1 | 1,066,000 | 6,102,527 | |||
Meiji Seika Kaisha Ltd.1 | 1,066,000 | 5,376,765 | |||
Nichirei Corp.1 | 1,066,000 | 4,139,905 | |||
Nippon Meat Packers Inc. | 1,066,000 | 14,821,882 | |||
Nisshin Seifun Group Inc. | 1,066,000 | 11,663,288 | |||
Nissin Food Products Co. Ltd. | 319,800 | 8,540,471 | |||
Snow Brand Milk Products Co. Ltd.1,2 | 533,000 | 1,732,627 | |||
96,896,796 | |||||
FOREST PRODUCTS & PAPER – 0.50 % | |||||
Nippon Paper Group Inc. | 3,198 | 15,700,973 | |||
OJI Paper Co. Ltd.1 | 3,198,000 | 18,736,904 | |||
34,437,877 | |||||
GAS – 0.89% | |||||
Osaka Gas Co. Ltd. | 7,462,000 | 22,539,483 | |||
Tokyo Gas Co. Ltd.1 | 9,594,000 | 38,731,112 | |||
61,270,595 | |||||
HAND & MACHINE TOOLS – 0.79% | |||||
Fuji Electric Holdings Co. Ltd. | 2,132,000 | 6,603,404 | |||
Nidec Corp.1 | 106,600 | 13,012,590 | |||
SMC Corp. | 213,200 | 26,025,181 | |||
THK Co. Ltd.1 | 426,400 | 9,261,121 | |||
54,902,296 | |||||
HEALTH CARE-PRODUCTS – 1.01% | |||||
Hoya Corp. | 426,400 | 46,407,824 | |||
Terumo Corp.1 | 746,200 | 23,398,130 | |||
69,805,954 | |||||
HOME BUILDERS – 0.92% | |||||
Daiwa House Industry Co. Ltd. | 2,132,000 | 24,389,663 | |||
Sekisui Chemical Co. Ltd. | 2,132,000 | 15,864,525 | |||
Sekisui House Ltd. | 2,132,000 | 23,571,904 | |||
63,826,092 | |||||
HOME FURNISHINGS – 3.59% | |||||
Matsushita Electric Industrial Co. Ltd.1 | 7,462,015 | 111,982,102 | |||
Sony Corp.1 | 3,304,600 | 126,435,768 | |||
Yamaha Corp. | 639,600 | 9,659,779 | |||
248,077,649 | |||||
HOUSEWARES – 0.13% | |||||
Toto Ltd.1 | 1,066,000 | 9,220,233 | |||
9,220,233 | |||||
INSURANCE – 2.46% | |||||
Millea Holdings Inc. | 5,330 | 78,198,207 | |||
Mitsui Sumitomo Insurance Co. Ltd. | 4,264,000 | 37,984,907 | |||
Sompo Japan Insurance Inc.1 | 2,132,000 | 22,692,813 | |||
T&D Holdings Inc.2 | 585,950 | 31,240,178 | |||
170,116,105 | |||||
INTERNET – 1.49% | |||||
Rakuten Inc. | 10,170 | 9,206,003 | |||
Softbank Corp.1 | 852,800 | 37,044,484 | |||
Trend Micro Inc.1 | 533,000 | 24,839,431 | |||
Yahoo! Japan Corp.1,2 | 6,389 | 32,164,022 | |||
103,253,940 |
SCHEDULEOF INVESTMENTS | 5 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
IRON & STEEL – 2.36% | |||||
JFE Holdings Inc. | 1,812,250 | $ | 55,956,705 | ||
Kobe Steel Ltd.1 | 8,528,000 | 15,537,421 | |||
Nippon Steel Corp.1 | 21,320,000 | 58,878,650 | |||
Nisshin Steel Co. Ltd. | 3,198,000 | 8,893,129 | |||
Sumitomo Metal Industries Ltd. | 13,858,000 | 23,786,565 | |||
163,052,470 | |||||
LEISURE TIME – 0.42% | |||||
Namco Ltd.1 | 425,700 | 5,857,788 | |||
Sega Sammy Holdings Inc.1,2 | 214,000 | 13,420,530 | |||
Shimano Inc. | 319,800 | 9,966,438 | |||
29,244,756 | |||||
MACHINERY - CONSTRUCTION & MINING – 0.35% | |||||
Komatsu Ltd. | 3,198,000 | 24,042,116 | |||
24,042,116 | |||||
MACHINERY - DIVERSIFIED – 0.94% | |||||
Amada Co. Ltd. | 1,066,000 | 7,012,284 | |||
Ebara Corp.1 | 1,066,000 | 4,967,886 | |||
Kubota Corp. | 3,198,000 | 17,632,929 | |||
Sumitomo Heavy Industries Ltd.1,2 | 2,132,000 | 9,404,229 | |||
Toyota Industries Corp. | 959,400 | 26,219,399 | |||
65,236,727 | |||||
MANUFACTURING – 2.33% | |||||
Fuji Photo Film Co. Ltd. | 1,596,900 | 60,485,736 | |||
Ishikawajima-Harima Heavy Industries Co. Ltd.1,2 | 4,264,000 | 6,910,064 | |||
Kawasaki Heavy Industries Ltd.1 | 5,330,000 | 9,199,789 | |||
Konica Minolta Holdings Inc. | 1,599,000 | 19,012,897 | |||
Mitsubishi Heavy Industries Ltd. | 10,660,000 | 28,826,006 | |||
Nikon Corp.1 | 1,066,000 | 13,319,250 | |||
Olympus Corp.1 | 1,066,000 | 23,510,572 | |||
161,264,314 | |||||
MEDIA – 0.04% | |||||
Fuji Television Network Inc. | 1,154 | 2,511,943 | |||
2,511,943 | |||||
METAL FABRICATE & HARDWARE – 0.26% | |||||
NSK Ltd. | 2,132,000 | 11,305,518 | |||
NTN Corp.1 | 1,066,000 | 6,347,855 | |||
17,653,373 | |||||
MINING – 0.61% | |||||
Dowa Mining Co. Ltd.1 | 1,066,000 | 7,881,153 | |||
Mitsubishi Materials Corp.1 | 3,198,000 | 8,341,142 | |||
Mitsui Mining & Smelting Co. Ltd. | 2,132,000 | 9,813,108 | |||
Sumitomo Metal Mining Co. Ltd.1 | 2,132,000 | 16,293,849 | |||
42,329,252 | |||||
OFFICE & BUSINESS EQUIPMENT – 3.04 % | |||||
Canon Inc. | 2,984,800 | 157,991,044 | |||
Ricoh Co. Ltd. | 2,132,000 | 39,783,976 | |||
Seiko Epson Corp. | 319,800 | 12,634,377 | |||
210,409,397 | |||||
OIL & GAS – 1.04% | |||||
Nippon Mining Holdings Inc. | 2,132,000 | 12,695,709 | |||
Nippon Oil Corp. | 5,330,500 | 39,869,492 | |||
Teikoku Oil Co. Ltd.1 | 1,066,000 | 8,157,146 | |||
TonenGeneral Sekiyu K.K. | 1,066,000 | 11,101,079 | |||
71,823,426 | |||||
PACKAGING & CONTAINERS – 0.22 % | |||||
Toyo Seikan Kaisha Ltd.1 | 852,800 | 15,022,233 | |||
15,022,233 | |||||
PHARMACEUTICALS – 5.21% | |||||
Chugai Pharmaceutical Co. Ltd.1 | 1,066,000 | 15,619,198 | |||
Daiichi Pharmaceutical Co. Ltd.1 | 959,400 | 24,793,432 | |||
Eisai Co. Ltd.1 | 959,400 | 32,475,255 | |||
Fujisawa Pharmaceutical Co. Ltd. | 1,066,000 | 26,781,608 | |||
Kyowa Hakko Kogyo Co. Ltd. | 1,066,000 | 8,146,924 | |||
Sankyo Co. Ltd.1 | 1,066,000 | 24,175,002 | |||
Shionogi & Co. Ltd. | 1,066,000 | 14,239,229 | |||
Taisho Pharmaceutical Co. Ltd.1 | 1,066,000 | 22,181,713 | |||
Takeda Pharmaceutical Co. Ltd. | 3,198,000 | 153,636,477 | |||
Yamanouchi Pharmaceutical Co. Ltd.1 | 1,066,000 | 37,923,575 | |||
359,972,413 | |||||
REAL ESTATE – 1.44% | |||||
Daito Trust Construction Co. Ltd.1 | 319,800 | 13,186,365 | |||
Leopalace21 Corp. | 426,400 | 7,118,592 | |||
Mitsubishi Estate Co. Ltd.1 | 3,198,000 | 39,007,105 | |||
Mitsui Fudosan Co. Ltd. | 2,132,000 | 26,556,725 | |||
Sumitomo Realty & Development Co. Ltd.1 | 1,066,000 | 13,666,798 | |||
99,535,585 |
6 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2005
Security | Shares | Value | |||
RETAIL – 3.78% | |||||
Aeon Co. Ltd.1 | 1,864,200 | $ | 29,870,817 | ||
Aoyama Trading Co. Ltd. | 213,200 | 5,652,759 | |||
Autobacs Seven Co. Ltd.1 | 106,600 | 3,434,588 | |||
Citizen Watch Co. Ltd.1 | 1,066,000 | 9,853,996 | |||
Daimaru Inc. (The)1 | 1,066,000 | 9,424,673 | |||
FamilyMart Co. Ltd.1 | 213,200 | 6,358,076 | |||
Fast Retailing Co. Ltd.1 | 213,200 | 14,147,231 | |||
Isetan Co. Ltd.1 | 959,400 | 12,263,319 | |||
Ito-Yokado Co. Ltd.1 | 1,066,000 | 44,158,987 | |||
Lawson Inc.1 | 213,200 | 8,136,702 | |||
Marui Co. Ltd. | 1,066,000 | 14,014,346 | |||
Mitsukoshi Ltd.1 | 1,066,000 | 5,356,321 | |||
Saizeriya Co. Ltd.1 | 213,290 | 3,341,956 | |||
Seven-Eleven Japan Co. Ltd.1 | 1,172,600 | 35,756,513 | |||
Shimachu Co. Ltd.1 | 213,200 | 5,202,992 | |||
Shimamura Co. Ltd.1 | 106,600 | 7,410,941 | |||
Takashimaya Co. Ltd.1 | 1,066,000 | 10,671,755 | |||
UNY Co. Ltd. | 1,066,000 | 12,654,821 | |||
USS Co. Ltd.1 | 95,940 | 7,543,827 | |||
Yamada Denki Co. Ltd.1 | 319,800 | 15,946,301 | |||
261,200,921 | |||||
SEMICONDUCTORS – 1.30% | |||||
NEC Electronics Corp.1 | 106,600 | 5,949,197 | |||
Rohm Co. Ltd. | 426,400 | 43,014,125 | |||
Tokyo Electron Ltd.1 | 639,652 | 41,157,069 | |||
90,120,391 | |||||
SHIPBUILDING – 0.09% | |||||
Mitsui Engineering & Shipbuilding Co. Ltd.1 | 3,198,000 | 6,041,195 | |||
6,041,195 | |||||
SOFTWARE – 0.23% | |||||
Capcom Co. Ltd.1 | 319,800 | 3,222,993 | |||
Konami Corp. | 319,800 | 7,283,166 | |||
Oracle Corp.1 | 106,600 | 5,274,546 | |||
15,780,705 | |||||
TELECOMMUNICATIONS – 3.32% | |||||
Nippon Telegraph & Telephone Corp. | 19,188 | 83,350,089 | |||
NTT Data Corp.1 | 5,330 | 18,859,567 | |||
NTT DoCoMo Inc. | 69,290 | 118,268,399 | |||
Oki Electric Industry Co. Ltd.1,2 | 2,132,000 | 9,322,453 | |||
229,800,508 | |||||
TEXTILES – 0.94% | |||||
Kuraray Co. Ltd. | 1,066,000 | 9,731,333 | |||
Mitsubishi Rayon Co. Ltd. | 2,132,000 | 7,625,603 | |||
Nisshinbo Industries Inc.1 | 1,066,000 | 8,627,358 | |||
Teijin Ltd.1 | 3,198,000 | 13,339,694 | |||
Toray Industries Inc. | 4,264,000 | 20,157,760 | |||
Toyobo Co. Ltd. | 2,132,000 | 5,417,654 | |||
64,899,402 | |||||
TOYS, GAMES & HOBBIES – 0.63% | |||||
Bandai Co. Ltd.1 | 359,399 | 7,685,283 | |||
Nintendo Co. Ltd. | 320,500 | 35,650,381 | |||
43,335,664 | |||||
TRANSPORTATION – 4.29% | |||||
Central Japan Railway Co.1 | 3,198 | 27,599,367 | |||
East Japan Railway Co. | 11,726 | 62,630,119 | |||
Kawasaki Kisen Kaisha Ltd.1 | 2,132,000 | 16,028,077 | |||
Keihin Electric Express Railway Co. Ltd.1 | 2,132,000 | 13,574,800 | |||
Keio Electric Railway Co. Ltd. | 2,132,000 | 12,675,265 | |||
Kintetsu Corp.1 | 5,330,000 | 17,786,259 | |||
Mitsui O.S.K. Lines Ltd.1 | 3,198,000 | 22,018,162 | |||
Nippon Express Co. Ltd. | 3,198,000 | 16,375,625 | |||
Nippon Yusen Kabushiki Kaisha | 4,264,000 | 25,636,746 | |||
Seino Transportation Co. Ltd.1 | 1,066,000 | 10,232,210 | |||
Tobu Railway Co. Ltd.1 | 3,198,000 | 12,849,039 | |||
Tokyu Corp. | 3,198,000 | 17,203,606 | |||
West Japan Railway Co.1 | 6,396 | 25,268,754 | |||
Yamato Transport Co. Ltd. | 1,066,000 | 16,978,722 | |||
296,856,751 | |||||
VENTURE CAPITAL – 0.10% | |||||
JAFCO Co. Ltd.1 | 106,600 | 6,685,180 | |||
6,685,180 | |||||
TOTAL COMMON STOCKS | 6,909,364,991 |
SCHEDULEOF INVESTMENTS | 7 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
SHORT-TERM INVESTMENTS – 21.34% | ||||||
COMMERCIAL PAPER3 – 5.01% | ||||||
Amstel Funding Corp. | $ | 2,954,019 | $ | 2,912,626 | ||
Amsterdam Funding Corp. | 7,817,498 | 7,814,353 | ||||
ANZ National Bank Ltd. | 3,553,408 | 3,505,028 | ||||
Barton Capital Corp. | 15,724,329 | 15,711,631 | ||||
Blue Ridge Asset Funding Corp. | 7,817,498 | 7,805,412 | ||||
Bryant Park Funding LLC | 710,682 | 709,941 | ||||
Chariot Funding LLC | 7,106,817 | 7,096,788 | ||||
Chesham Finance LLC | 2,842,727 | 2,842,123 | ||||
Corporate Asset Funding | 3,553,408 | 3,547,619 | ||||
CRC Funding LLC | 1,776,704 | 1,775,456 | ||||
Delaware Funding Corp. | 13,179,023 | 13,164,406 | ||||
DEPFA Bank PLC | 3,553,408 | 3,539,261 | ||||
Edison Asset Securitization | 23,097,154 | 23,055,469 | ||||
Fairway Finance LLC | 6,775,070 | 6,767,726 | ||||
Falcon Asset Securitization Corp. | 27,401,184 | 27,369,193 | ||||
Ford Credit Auto Receivables | 16,502,028 | 16,471,707 | ||||
Ford Credit Floorplan Motown | 8,883,521 | 8,879,869 | ||||
Fortis Funding LLC | 9,949,543 | 9,904,729 | ||||
General Electric Capital Corp. | 15,634,996 | 15,594,435 | ||||
Giro Funding US Corp. | 8,567,338 | 8,558,202 | ||||
Grampian Funding LLC | 20,965,109 | 20,707,232 | ||||
Jupiter Securitization Corp. | 32,423,429 | 32,394,020 | ||||
Kitty Hawk Funding Corp. | 10,660,225 | 10,649,716 | ||||
Liberty Street Funding Corp. | 3,908,749 | 3,904,921 | ||||
Moat Funding LLC | 1,421,363 | 1,419,192 | ||||
Nordea North America Inc. | 3,553,408 | 3,517,708 | ||||
Park Avenue Receivables Corp. | 11,100,990 | 11,093,463 | ||||
Park Granada LLC | 4,974,772 | 4,968,429 | ||||
Preferred Receivables Funding Corp. | 15,100,493 | 15,079,616 | ||||
Ranger Funding Co. LLC | 2,113,354 | 2,112,907 | ||||
Santander Central Hispano | 8,883,521 | 8,796,140 | ||||
Scaldis Capital LLC | 1,778,694 | 1,761,166 | ||||
Ticonderoga Master Funding Ltd. | 12,052,308 | 12,034,655 |
8 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2005
Security | Principal | Value | ||||
Tulip Funding Corp. | $ | 11,863,125 | $ | 11,863,125 | ||
UBS Finance (Delaware) | 14,213,633 | 14,213,633 | ||||
Windmill Funding Corp. | 2,487,386 | 2,486,152 | ||||
Yorktown Capital LLC | 2,487,386 | 2,484,589 | ||||
346,512,638 | ||||||
FLOATING RATE NOTES3 – 7.86% | ||||||
Allstate Life Global Funding II | 3,269,136 | 3,269,246 | ||||
American Express Centurion Bank | 10,660,225 | 10,660,225 | ||||
American Express Credit Corp. | 14,213,633 | 14,218,318 | ||||
Bank of Nova Scotia | 4,619,431 | 4,618,240 | ||||
Beta Finance Inc. | 26,650,562 | 26,652,673 | ||||
Canadian Imperial Bank of Commerce | 24,163,176 | 24,158,438 | ||||
CC USA Inc. | 14,213,633 | 14,212,505 | ||||
Commodore CDO Ltd. | 1,776,704 | 1,776,704 | ||||
Den Danske Bank NY | 21,320,450 | 21,317,116 | ||||
DEPFA Bank PLC | 7,106,817 | 7,106,817 | ||||
Dorada Finance Inc. | 5,898,658 | 5,897,929 | ||||
Fairway Finance LLC | 10,660,225 | 10,660,117 | ||||
Fifth Third Bancorp | 14,213,633 | 14,213,633 | ||||
Five Finance Inc. | 9,238,862 | 9,239,233 | ||||
General Electric Capital Corp. | 3,198,067 | 3,202,509 | ||||
General Electric Commercial Equipment Financing LLC | 3,035,170 | 3,035,170 | ||||
Hartford Life Global Funding Trust | 7,106,817 | 7,106,817 | ||||
HBOS Treasury Services PLC | 21,320,450 | 21,320,451 | ||||
K2 USA LLC | 31,980,675 | 31,981,046 | ||||
Leafs LLC | 7,462,157 | 7,462,157 | ||||
Links Finance LLC | 29,137,948 | 29,145,386 | ||||
Lothian Mortgages PLC | 14,213,633 | 14,213,633 | ||||
MetLife Funding Inc. | 10,660,225 | 10,660,225 | ||||
National City Bank (Ohio) | 17,767,041 | 17,765,743 | ||||
Nationwide Building Society | 26,295,221 | 26,300,762 | ||||
Norddeutsche Landesbank | 7,106,817 | 7,105,802 | ||||
Northern Rock PLC | 21,320,450 | 21,320,450 | ||||
Permanent Financing PLC | 19,188,405 | 19,188,405 |
SCHEDULEOF INVESTMENTS | 9 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2005
Security | Shares or Principal | Value | ||||
Sedna Finance Inc. | $ | 3,908,749 | $ | 3,907,942 | ||
Sigma Finance Inc. | 36,244,764 | 36,246,517 | ||||
Tango Finance Corp. | 21,867,675 | 21,866,767 | ||||
Wachovia Asset Securitization Inc. | 21,320,450 | 21,320,450 | ||||
Wells Fargo & Co. | 3,553,408 | 3,553,920 | ||||
WhistleJacket Capital LLC | 24,873,858 | 24,871,700 | ||||
White Pine Finance LLC | 38,874,287 | 38,871,407 | ||||
Winston Funding Ltd. | 5,074,267 | 5,074,267 | ||||
543,522,720 | ||||||
MEDIUM-TERM NOTES3 – 0.10% | ||||||
CC USA Inc. | 7,106,817 | 7,106,729 | ||||
7,106,729 | ||||||
MONEY MARKET FUNDS3 – 0.52% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares5 | 31,982,217 | 31,982,217 | ||||
BlackRock Temp Cash Money Market Fund | 1,325,367 | 1,325,367 | ||||
Short-Term Investment Co. - Prime Money Market Portfolio, Institutional Shares | 2,681,582 | 2,681,582 | ||||
35,989,166 | ||||||
Security | Principal | Value | ||||
REPURCHASE AGREEMENTS3 – 4.01% | ||||||
Bank of America N.A. Repurchase Agreements, dated 2/28/05, due 3/1/05, with a total maturity value of $159,915,054 and effective yields of 2.62% - 2.63%.6 | $ | 159,903,374 | $ | 159,903,374 | ||
Merrill Lynch Government Securities Inc. Repurchase Agreement, dated 2/28/05, due 3/1/05, with a maturity value of $117,271,040 and an effective yield of 2.63%.6 | 117,262,474 | 117,262,474 | ||||
277,165,848 | ||||||
TIME DEPOSITS3 – 3.56% | ||||||
Abbey National Treasury Services PLC | 4,974,772 | 4,974,694 | ||||
Banco Bilbao Vizcaya Argentaria SA | 10,660,225 | 10,660,240 | ||||
BNP Paribas (New York) | 9,949,543 | 9,949,544 | ||||
Credit Suisse First Boston | 7,106,817 | 7,106,817 | ||||
Deutsche Bank AG | 11,835,242 | 11,835,242 | ||||
First Tennessee Bank | 17,767,041 | 17,767,041 | ||||
HBOS Treasury Services PLC | 11,655,179 | 11,655,141 | ||||
Key Bank N.A. | 42,640,899 | 42,640,900 | ||||
Natexis Banques | 12,436,929 | 12,436,929 | ||||
Norddeutsche Landesbank | 7,106,817 | 7,106,438 |
10 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES ® MSCI JAPAN INDEX FUND
February 28, 2005
Security | Principal | Value | |||||
Royal Bank of Scotland | $ | 1,776,704 | $ | 1,776,704 | |||
Societe Generale | 710,682 | 710,682 | |||||
Toronto-Dominion Bank | 28,427,266 | 28,426,020 | |||||
UBS AG | 2,842,727 | 2,842,532 | |||||
Washington Mutual Bank | 32,691,357 | 32,691,357 | |||||
Wells Fargo Bank N.A. | 43,706,922 | 43,706,821 | |||||
246,287,102 | |||||||
U.S. GOVERNMENT AGENCY NOTES3 – 0.28% | |||||||
Federal Home Loan Mortgage Corp. | 8,517,733 | 8,501,249 | |||||
Federal National Mortgage Association | 10,660,225 | 10,561,773 | |||||
19,063,022 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 1,475,647,225 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 121.27% | 8,385,012,216 | ||||||
Other Assets, Less Liabilities – (21.27%) | (1,470,816,737 | ) | |||||
NET ASSETS – 100.00% | $ | 6,914,195,479 | |||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | Non-income earning security. |
3 | All or a portion of these securities represent an investment of securities lending collateral. See Note 5. |
4 | All or a portion of this security is exempt from registration pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | Repurchase agreements held as collateral for securities on loan are fully collateralized by U.S. Government securities, with interest rates ranging from 2.95% to 7.85% and maturity dates ranging from 8/1/08 to 1/1/44. |
See notes to financial statements.
SCHEDULEOF INVESTMENTS | 11 |
Table of Contents
Statement of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2005
iShares MSCI Japan Index Fund | ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 7,534,267,817 | ||
Affiliated issuersa | $ | 31,982,217 | ||
Foreign currency, at cost | $ | 4,502,250 | ||
Investments in securities, at value (including securities on loanb) (Note 1): | ||||
Unaffiliated issuers | $ | 8,353,029,999 | ||
Affiliated issuersa | 31,982,217 | |||
Foreign currency, at value | 4,565,281 | |||
Receivables: | ||||
Investment securities sold | 34,024,796 | |||
Dividends and interest | 3,970,339 | |||
Capital shares sold | 305,225 | |||
Total Assets | 8,427,877,857 | |||
LIABILITIES | ||||
Payables: | ||||
Investment securities purchased | 35,333,936 | |||
Collateral for securities on loan (Note 5) | 1,472,092,261 | |||
Investment advisory fees (Note 2) | 6,256,181 | |||
Total Liabilities | 1,513,682,378 | |||
NET ASSETS | $ | 6,914,195,479 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 6,196,655,307 | ||
Distributions in excess of net investment income | (7,067,031 | ) | ||
Accumulated net realized loss | (94,199,102 | ) | ||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 818,806,305 | |||
NET ASSETS | $ | 6,914,195,479 | ||
Shares outstanding | 639,600,000 | |||
Net asset value per share | $ | 10.81 | ||
a | The Fund’s investment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market value of $1,401,598,340. See Note 5. |
See notes to financial statements.
12 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statement of Operations (Unaudited)
iSHARES®, INC.
For the six months ended February 28, 2005
iShares MSCI Japan Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividendsa | $ | 26,207,482 | ||
Interest from affiliated issuersb | 25,935 | |||
Securities lending incomec | 952,489 | |||
Total investment income | 27,185,906 | |||
EXPENSES (Note 2) | ||||
Investment advisory fees | 17,973,433 | |||
Total expenses | 17,973,433 | |||
Net investment income | 9,212,473 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments | (12,052,224 | ) | ||
In-kind redemptions | 35,036,341 | |||
Foreign currency transactions | 1,736,787 | |||
Net realized gain | 24,720,904 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 554,155,994 | |||
Translation of assets and liabilities in foreign currencies | 61,426 | |||
Net change in unrealized appreciation (depreciation) | 554,217,420 | |||
Net realized and unrealized gain | 578,938,324 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 588,150,797 | ||
a | Net of foreign withholding tax of $1,087,126. |
b | The Fund’s investment adviser is an affiliate of the issuers. See Note 2. |
c | Includes income earned from issuers of which the Fund’s investment adviser is an affiliate. See Note 2. |
See notes to financial statements.
FINANCIAL STATEMENTS | 13 |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Japan Index Fund | ||||||||
For the six months ended February 28, 2005 | For the year ended August 31, 2004 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 9,212,473 | $ | 10,691,336 | ||||
Net realized gain | 24,720,904 | 35,554,240 | ||||||
Net change in unrealized appreciation (depreciation) | 554,217,420 | 309,251,117 | ||||||
Net increase in net assets resulting from operations | 588,150,797 | 355,496,693 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (26,096,423 | ) | (474,213 | ) | ||||
Total distributions to shareholders | (26,096,423 | ) | (474,213 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 597,123,165 | 4,011,503,336 | ||||||
Cost of shares redeemed | (108,313,704 | ) | (230,049,073 | ) | ||||
Net increase in net assets from capital share transactions | 488,809,461 | 3,781,454,263 | ||||||
INCREASE IN NET ASSETS | 1,050,863,835 | 4,136,476,743 | ||||||
NET ASSETS: | ||||||||
Beginning of period | 5,863,331,644 | 1,726,854,901 | ||||||
End of period | $ | 6,914,195,479 | $ | 5,863,331,644 | ||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (7,067,031 | ) | $ | 9,816,919 | |||
SHARES ISSUED AND REDEEMED: | ||||||||
Shares sold | 57,600,000 | 408,600,000 | ||||||
Shares redeemed | (10,800,000 | ) | (24,000,000 | ) | ||||
Net increase in shares outstanding | 46,800,000 | 384,600,000 | ||||||
See notes to financial statements.
14 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Japan Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | Year ended Aug. 31, 2000 | |||||||||||||||||||
Net asset value, beginning of period | $ | 9.89 | $ | 8.29 | $ | 7.77 | $ | 9.07 | $ | 13.82 | $ | 13.22 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | 0.02 | 0.03 | 0.00 | c | (0.01 | ) | (0.01 | ) | (0.05 | ) | ||||||||||||||
Net realized and unrealized gain (loss) | 0.94 | 1.57 | 0.52 | (1.29 | ) | (4.74 | ) | 1.21 | ||||||||||||||||
Total from investment operations | 0.96 | 1.60 | 0.52 | (1.30 | ) | (4.75 | ) | 1.16 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.00 | )e | — | — | — | (0.00 | )e | |||||||||||||||
Net realized gain | — | — | — | — | — | (0.53 | ) | |||||||||||||||||
Return of capital | — | — | — | — | — | (0.03 | ) | |||||||||||||||||
Total distributions | (0.04 | ) | (0.00 | )e | — | — | — | (0.56 | ) | |||||||||||||||
Net asset value, end of period | $ | 10.81 | $ | 9.89 | $ | 8.29 | $ | 7.77 | $ | 9.07 | $ | 13.82 | ||||||||||||
Total return | 9.75 | %b | 19.32 | % | 6.69 | % | (14.33 | )% | (34.37 | )% | 8.75 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of year (000s) | $ | 6,914,195 | $ | 5,863,332 | $ | 1,726,855 | $ | 666,376 | $ | 527,899 | $ | 787,790 | ||||||||||||
Ratio of expenses to average net assetsc | 0.58 | % | 0.64 | %f | 0.84 | % | 0.84 | % | 0.84 | % | 0.88 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | 0.30 | % | 0.28 | %g | 0.03 | % | (0.12 | )% | (0.11 | )% | (0.32 | )% | ||||||||||||
Portfolio turnover rated | 1 | % | 5 | % | 2 | % | 2 | % | 21 | % | 22 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
e | Rounds to less than $0.01. |
f | Ratio of expenses to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 0.78%. |
g | Ratio of net investment income to average net assets prior to reimbursed distribution fees for the year ended August 31, 2004 was 0.14%. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 15 |
Table of Contents
Notes to the Financial Statements (Unaudited)
iSHARES®, INC.
1. SIGNIFICANT ACCOUNTING POLICIES
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to amended and restated Articles of Incorporation. As of February 28, 2005, the Company offered 24 investment portfolios or funds.
These financial statements relate only to the iShares MSCI Japan Index Fund (the “Fund”).
The Fund’s investment objective is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded equity securities in the aggregate in the Japanese equity market, as measured by the MSCI Japan Index compiled by Morgan Stanley Capital International Inc. (“MSCI”). The investment adviser utilizes a “passive” or index approach to achieve the Fund’s investment objective. The Fund is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold stocks in fewer companies than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.
The Fund invests in the securities of foreign issuers of a single country, which may involve certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; lesser regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war.
Under the Company’s organizational documents, the Fund’s officers and directors are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
The following significant accounting policies are consistently followed by the Company in the preparation of its financial statements 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 certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Certain prior year amounts in the financial statements have been reclassified to be consistent with the current period presentation. The reclassifications had no impact on prior year net assets, net income or distributions.
SECURITY VALUATION
The securities of the Fund are valued primarily on the basis of market prices. Debt securities maturing in 60 days or less and short-term investments are valued at amortized cost.
16 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Securities held under a repurchase agreement are valued at a price equal to the amount of the cash investment at the time of valuation on the valuation date. The market values of the underlying securities are determined in accordance with the above discussed valuation methods, as appropriate, for the purpose of determining the adequacy of collateral.
Securities of investment companies, other than investment companies whose shares are traded on an exchange, are valued at the investment company’s published net asset value per share.
Any securities, including restricted securities or other assets for which market quotations are not readily available, or for which a significant event has occurred since the time of the most recent market quotation, are valued in accordance with fair value pricing policies approved by the Board of Directors of the Company (the “Board”).
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.
FOREIGN CURRENCY TRANSLATION
The Fund’s accounting records are maintained in U.S. dollars. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions.
Foreign currencies, investment securities and assets and liabilities denominated in foreign currencies are converted into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a different rate from the rates used by MSCI may adversely affect the Fund’s ability to track its underlying index.
The Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Fund as a component of realized and unrealized gains and losses from investments for financial reporting purposes.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income, if any, including any net foreign currency gains, are declared and distributed at least annually. Distributions of net realized gains, if any, generally are declared and distributed once a year. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Fund.
As of August 31, 2004, the tax year-end of the Fund, the components of distributable earnings on a tax basis consisted of undistributed ordinary income of $12,922,546, unrealized appreciation of $225,179,965 and capital and other losses of $82,616,713, for net distributable earnings of $155,485,798.
For the six months ended February 28, 2005 and for the year ended August 31, 2004, the tax characterization of distributions paid for the Fund was equal to the book characterization of distributions paid. The total distributions and distributions per share are disclosed in the accompanying Statements of Changes in Net Assets and the Financial Highlights for the Fund.
NOTESTOTHE FINANCIAL STATEMENTS | 17 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
FEDERAL INCOME TAXES
The Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of the Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its net income and any net gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the six months ended February 28, 2005.
As of August 31, 2004, the tax year-end of the Fund, the Fund had tax basis net capital loss carryforwards of $2,959,030, $62,572,173, $3,621,148 and $5,594,562 expiring in 2009, 2010, 2011 and 2012, respectively. Such losses may be applied against any net realized taxable gains in each succeeding year, or until their respective expiration date, whichever occurs first.
The Fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies”. The Fund may elect to mark-to-market annually the shares of each passive foreign investment company, and would be required to distribute to shareholders any such mark-to-market gains.
As of February 28, 2005, the cost of investments for federal income tax purposes was $7,606,280,098. Net unrealized appreciation aggregated $778,732,118, of which $908,734,710 represented gross unrealized appreciation on securities and $130,002,592 represented gross unrealized depreciation on securities.
REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements with banks and securities dealers. These transactions involve the purchase of securities with a simultaneous commitment to resell the securities to the bank or the dealer at an agreed-upon date and price. A repurchase agreement is accounted for as an investment by the Fund, collateralized by securities, which are delivered to the Fund’s custodian or to an agent bank under a tri-party agreement. The securities are marked-to-market daily and additional securities are acquired as needed, to ensure that their value equals or exceeds the repurchase price plus accrued interest. As of February 28, 2005, a portion of the cash collateral for securities on loan for the Fund was invested in repurchase agreements as disclosed in the Fund’s Schedule of Investments. For further information, see Note 5, below.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Agreement with the Company, as amended, Barclays Global Fund Advisors (“BGFA”) manages the investment of the Fund’s assets. BGFA is a California corporation indirectly owned by Barclays Bank PLC. Under the Investment Advisory Agreement, BGFA is responsible for all of the expenses (“Covered Expenses”) of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees and extraordinary expenses.
For its investment advisory services to the Fund, BGFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate net assets of all the funds offered by the Company (except for the iShares MSCI Brazil, iShares MSCI Emerging Markets, iShares MSCI Pacific ex-Japan, iShares MSCI South Africa, iShares MSCI South Korea, and iShares MSCI Taiwan Index Funds) as follows:
Investment Advisory Fee | Aggregate Net Assets | |
0.59% | First $7 billion | |
0.54 | Over $7 billion, up to and including $11 billion | |
0.49 | Over $11 billion |
18 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Barclays Global Investors, N.A. (“BGI”) has a license agreement with MSCI for the use of the MSCI Japan Index. Under a sub-license agreement between BGI and the Fund, the fee for the use of the MSCI Japan Index is paid directly by BGI to MSCI.
Investors Bank & Trust Company (“Investors Bank”) serves as administrator, custodian and transfer agent for the Company. As compensation for its services, Investors Bank receives certain out-of-pocket costs, transaction fees, and asset-based fees, which are accrued daily and paid monthly. These fees are Covered Expenses as defined above.
BGI serves as securities lending agent for the Company. BGI is an affiliate of BGFA, the Fund’s investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 28, 2005, BGI earned securities lending agent fees of $952,489.
SEI Investments Distribution Company (the “Distributor”) serves as the Fund’s underwriter and distributor of the shares of the Fund, pursuant to a Distribution Agreement with the Company. The Distributor does not receive a fee from the Fund for its distribution services.
Pursuant to Rule 17a-7 under the 1940 Act, the Fund executed cross trades for the six months ended February 28, 2005. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. The Board reviewed all such transactions executed during the first four months of the fiscal half-year and concluded that they were in compliance with the requirements and restrictions set forth in Rule 17a-7. The Board is scheduled at its next meeting to review all such transactions executed during the last two months of the fiscal half-year.
Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission, the Fund may invest in the Institutional Shares of the Government Money Market Fund (“GMMF”), Institutional Money Market Fund (“IMMF”) and Prime Money Market Fund (“PMMF”) of Barclays Global Investors Funds. The GMMF, IMMF and PMMF are feeder funds in a master/feeder fund structure that invest substantially all of their assets in the Government Money Market Master Portfolio, Money Market Master Portfolio and Prime Money Market Master Portfolio (collectively the “Master Portfolios”), respectively, which are managed by BGFA, the Fund’s investment adviser. The GMMF, IMMF and PMMF are open-end money market funds available to institutional and accredited investors, including other investment companies managed by BGFA. The GMMF, IMMF and PMMF seek a high level of income consistent with liquidity and the preservation of capital. While the GMMF, IMMF and PMMF do not directly charge an investment advisory fee, the Master Portfolios in which they invest do charge an investment advisory fee. Income distributions from the GMMF, IMMF and PMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Fund from temporary cash investments or from investment of securities lending collateral are recorded as either interest from affiliated issuers or securities lending income, respectively, in the accompanying Statement of Operations.
The following table provides information about the investment by the Fund in shares of issuers of which BGFA is an affiliate, for the six months ended February 28, 2005, including income earned from these affiliated issuers.
Name of Affiliated Issuer | Number of Shares Held Beginning (in 000s) | Gross Additions (in 000s) | Gross Reductions (in 000s) | Number of Shares Held End of Period (in 000s) | Value at End of Period | Interest Income | ||||||||
IMMF | 3,155 | 141,265 | 140,865 | 3,555 | $ | 3,554,964 | $ | 25,935 |
NOTESTOTHE FINANCIAL STATEMENTS | 19 |
Table of Contents
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
During the six months ended February 28, 2005, the Fund invested cash collateral from securities on loan in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account used for the investment of the collateral for securities on loan, the information reported above for the Fund does not include the Fund’s holdings of the GMMF, IMMF and PMMF in connection with the investment of collateral for securities on loan.
As of February 28, 2005, certain directors and officers of the Company are also officers of BGI.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2005, aggregated $60,979,141 and $73,338,635, respectively.
In-kind purchases and sales (see Note 4) for the six months ended February 28, 2005, aggregated $593,540,113 and $107,681,442, respectively.
4. CAPITAL SHARE TRANSACTIONS
The Company has authorized 10.9 billion shares of $.001 par value capital stock. As of February 28, 2005, 2,124,600,000 shares were authorized to the Fund.
The Company issues and redeems capital shares of the Fund only in aggregations of a specified number of shares (each, a “Creation Unit”) at net asset value. Except when aggregated in Creation Units, shares of the Fund are not redeemable. Transactions in capital shares for the Fund are disclosed in detail in the Statements of Changes in Net Assets.
The consideration for the purchase of Creation Units of the Fund generally consists of the in-kind deposit of a designated portfolio of equity securities constituting a portfolio sampling representation of the MSCI Japan Index and an amount of cash. A purchase transaction fee and a redemption transaction fee are charged to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
5. LOANS OF PORTFOLIO SECURITIES
The Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received is required to have a value of at least 105% of the market value of the loaned securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Fund of securities lending are that the borrower may not provide additional collateral when required, or may not return the securities when due.
As of February 28, 2005, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in a joint account with other funds managed by BGFA, which invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities. Income from the joint account is allocated daily to the Fund, based on the Fund’s portion of the total cash collateral received. The market value of the securities on loan as of February 28, 2005 and the value of the related collateral are disclosed in the Statement of Assets and Liabilities. Securities lending income, which is disclosed in the Fund’s Statement of Operations, is presented net of rebates paid to, or fees paid by, borrowers.
20 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes:
NOTES | 21 |
Table of Contents
The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call iShares at
1-800-iShares (1-800-474-2737) to obtain a prospectus for any iShares Fund. The prospectus contains more complete information, including charges, expenses, investment objectives and risk factors that should be carefully considered to determine if the Fund(s) are an appropriate investment for you. Read the prospectus(es) carefully before investing. Investing involves risk, including possible loss of principal.
iShares S&P Domestic Index Funds |
iShares S&P 1500 (ISI) |
iShares S&P 500 (IVV) |
iShares S&P 500/BARRA Growth (IVW) |
iShares S&P 500/BARRA Value (IVE) |
iShares S&P MidCap 400 (IJH) |
iShares S&P MidCap 400/BARRA Growth (IJK) |
iShares S&P MidCap 400/BARRA Value (IJJ) |
iShares S&P SmallCap 600 (IJR) |
iShares S&P SmallCap 600/BARRA Growth (IJT) |
iShares S&P SmallCap 600/BARRA Value (IJS) |
iShares S&P 100 (OEF) |
iShares Sector and Specialty Index Funds |
iShares Cohen & Steers Realty Majors (ICF) |
iShares Dow Jones Select Dividend (DVY) |
iShares Dow Jones Transportation Average (IYT) |
iShares Dow Jones U.S. Basic Materials Sector (IYM) |
iShares Dow Jones U.S. Consumer Cyclical Sector (IYC) |
iShares Dow Jones U.S. Consumer Non-Cyclical Sector (IYK) |
iShares Dow Jones U.S. Energy Sector (IYE) |
iShares Dow Jones U.S. Financial Sector (IYF) |
iShares Dow Jones U.S. Financial Services (IYG) |
iShares Dow Jones U.S. Healthcare Sector (IYH) |
iShares Dow Jones U.S. Industrial Sector (IYJ) |
iShares Dow Jones U.S. Real Estate (IYR) |
iShares Dow Jones U.S. Technology Sector (IYW) |
iShares Dow Jones U.S. Telecommunications Sector (IYZ) |
iShares Dow Jones U.S. Total Market (IYY) |
iShares Dow Jones U.S. Utilities Sector (IDU) |
iShares Goldman Sachs Natural Resources (IGE) |
iShares Goldman Sachs Networking (IGN) |
iShares Goldman Sachs Semiconductor (IGW) |
iShares Goldman Sachs Software (IGV) |
iShares Goldman Sachs Technology (IGM) |
iShares KLD Select SocialSM (KLD) |
iShares Nasdaq Biotechnology (IBB) |
iShares S&P Global Energy Sector (IXC) |
iShares S&P Global Financials Sector (IXG) |
iShares S&P Global Healthcare Sector (IXJ) |
iShares S&P Global Technology Sector (IXN) |
iShares S&P Global Telecommunications Sector (IXP) |
iShares Russell Index Funds |
iShares Russell 3000 (IWV) |
iShares Russell 3000 Growth (IWZ) |
iShares Russell 3000 Value (IWW) |
iShares Russell 1000 (IWB) |
iShares Russell 1000 Growth (IWF) |
iShares Russell 1000 Value (IWD) |
iShares Russell Midcap (IWR) |
iShares Russell Midcap Growth (IWP) |
iShares Russell Midcap Value (IWS) |
iShares Russell 2000 (IWM) |
iShares Russell 2000 Growth (IWO) |
iShares Russell 2000 Value (IWN) |
iShares International Index Funds |
iShares FTSE/Xinhua China 25 (FXI) |
iShares MSCI Australia (EWA) |
iShares MSCI Austria (EWO) |
iShares MSCI Belgium (EWK) |
iShares MSCI Brazil (EWZ) |
iShares MSCI Canada (EWC) |
iShares MSCI EAFE (EFA) |
iShares MSCI Emerging Markets (EEM) |
iShares MSCI EMU (EZU) |
iShares MSCI France (EWQ) |
iShares MSCI Germany (EWG) |
iShares MSCI Hong Kong (EWH) |
iShares MSCI Italy (EWI) |
iShares MSCI Japan (EWJ) |
iShares MSCI Malaysia (EWM) |
iShares MSCI Mexico (EWW) |
iShares MSCI Netherlands (EWN) |
iShares MSCI Pacific ex-Japan (EPP) |
iShares MSCI Singapore (EWS) |
iShares MSCI South Africa (EZA) |
iShares MSCI South Korea (EWY) |
iShares MSCI Spain (EWP) |
iShares MSCI Sweden (EWD) |
iShares MSCI Switzerland (EWL) |
iShares MSCI Taiwan (EWT) |
iShares MSCI United Kingdom (EWU) |
iShares S&P Europe 350 (IEV) |
iShares S&P Global 100 (IOO) |
iShares S&P Latin America 40 (ILF) |
iShares S&P/TOPIX 150 (ITF) |
iShares Bond Funds |
iShares GS $ InvesTop™ Corporate (LQD) |
iShares Lehman Aggregate (AGG) |
iShares Lehman TIPS (TIP) |
iShares Lehman 1-3 Year Treasury (SHY) |
iShares Lehman 7-10 Year Treasury (IEF) |
iShares Lehman 20+ Year Treasury (TLT) |
iShares NYSE Index Funds |
iShares NYSE 100 (NY) |
iShares NYSE Composite (NYC) |
iShares Morningstar Index Funds |
iShares Morningstar Large Core (JKD) |
iShares Morningstar Large Growth (JKE) |
iShares Morningstar Large Value (JKF) |
iShares Morningstar Mid Core (JKG) |
iShares Morningstar Mid Growth (JKH) |
iShares Morningstar Mid Value (JKI) |
iShares Morningstar Small Core (JKJ) |
iShares Morningstar Small Growth (JKK) |
iShares Morningstar Small Value (JKL) |
iShares is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by Goldman, Sachs & Co. or Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., FTSE/Xinhua Index Limited, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The Nasdaq Stock Market, Inc., New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. “GS $InvesTop™” and “Goldman Sachs®” are trademarks of Goldman, Sachs & Co.
An investment in the Fund(s) is not a deposit of a bank and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
This advertising section does not constitute part of the 2005 Semi-Annual Report.
1667-iS-0305
22 | 2005 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an adviser to the iShares Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the iShares Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., a wholly owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morgan Stanley Capital International, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds.
©2005 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Investing involves risk, including possible loss of principal.
A description of the policies that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, 2004 is available without charge, upon request, by calling toll-free 1 800 474 2737; on the Fund’s website at www.iShares.com; and on the Securities and Exchange Commission’s website at www.sec.gov.
The Fund files its complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q, which when filed, will be available on the Commission’s website at www.sec.gov. When filed, the Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1 800 SEC 0330. The Fund also discloses its complete schedules of portfolio holdings on a daily and monthly basis on the Fund’s website at www.iShares.com.
This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
BGI-F-037-02005
![]() | ![]() |
Table of Contents
Item 2. Code of Ethics.
Not applicable to this semi-annual filing.
Item 3. Audit Committee Financial Expert.
Not applicable to this semi-annual filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to this semi-annual filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable to this semi-annual filing.
Item 6. Schedule of Investments.
The Funds’ full schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to the Registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to the Registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to the Registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.
Item 11. Controls and Procedures.
(a) The President and Principal Financial Officer have concluded that, based on their evaluation as of a date within 90 days of the filing date of this report, the disclosure controls and procedures of the Registrant (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are reasonably designed to achieve the purposes described in the attached certification, Section 4 (a).
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a) (1) Not applicable to this semi-annual filing.
(a) (2) Section 302 Certifications are attached.
(a) (3) Not applicable to the Registrant.
(b) Section 906 Certifications are attached.
Table of Contents
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
iShares, Inc. |
By: /s/ Lee T. Kranefuss |
Lee T. Kranefuss, President Date: May 2, 2005 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: /s/ Lee T. Kranefuss |
Lee T. Kranefuss, President Date: May 2, 2005 |
By: /s/ Michael A. Latham |
Michael A. Latham, Principal Financial Officer Date: May 2, 2005 |