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, 2006
Date of reporting period: February 28, 2006
Item 1. | Reports to Stockholders. |
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iSHARES® MSCI AUSTRIA INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 13.86%, while the Index returned 14.62%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
25.25% | 25.03 | % | 28.36 | % | 30.22 | % | 30.01 | % | 31.10 | % | 12.31 | % | 12.35 | % | 13.53 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
25.25% | 25.03 | % | 28.36 | % | 274.47 | % | 271.37 | % | 287.27 | % | 218.21 | % | 219.17 | % | 254.24 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 39.07 | % | |
Energy | 17.98 | ||
Communications | 13.91 | ||
Industrial | 12.05 | ||
Basic Materials | 10.20 | ||
Utilities | 6.60 | ||
Short-Term and Other Net Assets | 0.19 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
OMV AG | 17.98 | % | |
Erste Bank der Oesterreichischen Sparkassen AG | 16.25 | ||
Telekom Austria AG | 13.91 | ||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 5.10 | ||
Wienerberger Baustoffindustrie AG | 4.86 | ||
Immofinanz Immobilien Anlage AG | 4.81 | ||
Raiffeisen International Bank Holding AG | 4.81 | ||
Meinl European Land Ltd. | 4.68 | ||
Voestalpine AG | 4.64 | ||
CA Immobilien Anlagen AG | 3.94 | ||
TOTAL | 80.98 | % | |
FUND PERFORMANCE OVERVIEW | 1 |
Fund Performance Overview
iSHARES® MSCI BELGIUM INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 13.50%, while the Index returned 14.47%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
12.67% | 13.12 | % | 14.44 | % | 13.77 | % | 13.89 | % | 11.58 | % | 9.55 | % | 9.53 | % | 9.85 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
12.67% | 13.12 | % | 14.44 | % | 90.57 | % | 91.57 | % | 72.95 | % | 148.22 | % | 147.75 | % | 155.14 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 53.18 | % | |
Consumer Non-Cyclical | 16.57 | ||
Basic Materials | 9.46 | ||
Diversified | 8.41 | ||
Communications | 6.01 | ||
Industrial | 4.90 | ||
Consumer Cyclical | 1.13 | ||
Short-Term and Other Net Assets | 0.34 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Fortis | 23.72 | % | |
KBC Groupe | 14.56 | ||
Dexia Group | 10.23 | ||
InBev | 5.03 | ||
Solvay SA | 4.94 | ||
Groupe Bruxelles Lambert SA | 4.86 | ||
Umicore | 4.52 | ||
Cofinimmo | 4.21 | ||
Belgacom SA | 4.12 | ||
Delhaize Group | 3.91 | ||
TOTAL | 80.10 | % | |
2 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES® MSCI EMU INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 13.16%, while the Index returned 13.54%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
14.63% | 14.79 | % | 14.91 | % | 6.18 | % | 6.01 | % | 6.48 | % | 1.85 | % | 1.86 | % | 2.21 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
14.63% | 14.79 | % | 14.91 | % | 34.93 | % | 33.90 | % | 36.88 | % | 10.82 | % | 10.88 | % | 13.01 | % |
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.
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 32.81 | % | |
Communications | 12.86 | ||
Consumer Non-Cyclical | 11.79 | ||
Industrial | 10.47 | ||
Utilities | 8.54 | ||
Energy | 7.53 | ||
Consumer Cyclical | 6.66 | ||
Basic Materials | 5.23 | ||
Technology | 2.89 | ||
Diversified | 0.90 | ||
Short-Term and Other Net Assets | 0.32 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Total SA (France) | 3.99 | % | |
Sanofi-Aventis (France) | 2.53 | ||
Banco Santander Central Hispano SA (Spain) | 2.48 | ||
Nokia OYJ (Finland) | 2.18 | ||
ENI SpA (Italy) | 2.14 | ||
Siemens AG (Germany) | 2.10 | ||
ING Groep NV (Netherlands) | 2.02 | ||
BNP Paribas SA (France) | 2.01 | ||
Banco Bilbao Vizcaya Argentaria SA (Spain) | 1.98 | ||
E.ON AG (Germany) | 1.97 | ||
TOTAL | 23.40 | % | |
FUND PERFORMANCE OVERVIEW | 3 |
Fund Performance Overview
iSHARES ® MSCI FRANCE INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 10.07%, while the Index returned 10.33%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
13.51% | 13.42 | % | 13.84 | % | 5.81 | % | 5.76 | % | 6.08 | % | 10.56 | % | 10.55 | % | 10.81 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
13.51% | 13.42 | % | 13.84 | % | 32.63 | % | 32.34 | % | 34.33 | % | 171.95 | % | 171.87 | % | 178.17 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 21.16 | % | |
Consumer Non-Cyclical | 19.94 | ||
Energy | 14.09 | ||
Industrial | 11.60 | ||
Communications | 10.74 | ||
Consumer Cyclical | 7.27 | ||
Utilities | 5.96 | ||
Basic Materials | 3.94 | ||
Technology | 2.98 | ||
Diversified | 2.17 | ||
Short-Term and Other Net Assets | 0.15 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Total SA | 13.58 | % | |
Sanofi-Aventis | 8.71 | ||
BNP Paribas SA | 6.83 | ||
AXA | 5.17 | ||
Societe Generale Class A | 4.89 | ||
Suez SA | 3.60 | ||
France Telecom | 3.59 | ||
Vivendi Universal SA | 3.40 | ||
Carrefour SA | 2.74 | ||
Groupe Danone | 2.69 | ||
TOTAL | 55.20 | % | |
4 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES ® MSCI GERMANY INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 16.17%, while the Index returned 16.41%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
19.55% | 20.07 | % | 19.82 | % | 4.59 | % | 4.68 | % | 4.66 | % | 7.60 | % | 7.63 | % | 8.04 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
19.55% | 20.07 | % | 19.82 | % | 25.18 | % | 25.72 | % | 25.58 | % | 107.64 | % | 108.14 | % | 116.23 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 26.20 | % | |
Industrial | 15.27 | ||
Consumer Cyclical | 15.13 | ||
Utilities | 14.08 | ||
Basic Materials | 9.72 | ||
Consumer Non-Cyclical | 7.11 | ||
Technology | 6.99 | ||
Communications | 5.32 | ||
Short-Term and Other Net Assets | 0.18 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Siemens AG | 9.81 | % | |
E.ON AG | 9.22 | ||
Allianz AG | 8.16 | ||
Deutsche Bank AG | 7.28 | ||
DaimlerChrysler AG | 6.67 | ||
SAP AG | 5.92 | ||
BASF AG | 4.93 | ||
Deutsche Telekom AG | 4.89 | ||
RWE AG | 4.60 | ||
Bayer AG | 3.55 | ||
TOTAL | 65.03 | % | |
FUND PERFORMANCE OVERVIEW | 5 |
Fund Performance Overview
iSHARES ® MSCI ITALY INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 7.55%, while the Index returned 7.91%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
7.38% | 7.62 | % | 7.33 | % | 8.14 | % | 8.18 | % | 8.07 | % | 12.05 | % | 12.05 | % | 11.94 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
7.38% | 7.62 | % | 7.33 | % | 47.89 | % | 48.16 | % | 47.41 | % | 210.83 | % | 210.85 | % | 207.81 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 46.99 | % | |
Energy | 17.70 | ||
Communications | 14.66 | ||
Utilities | 9.30 | ||
Consumer Cyclical | 4.14 | ||
Consumer Non-Cyclical | 4.10 | ||
Industrial | 2.83 | ||
Short-Term and Other Net Assets | 0.28 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
ENI SpA | 17.70 | % | |
UniCredito Italiano SpA | 12.44 | ||
Enel SpA | 7.38 | ||
Telecom Italia SpA | 6.99 | ||
Sanpaolo IMI SpA | 4.97 | ||
Assicurazioni Generali SpA | 4.82 | ||
Banca Intesa SpA | 4.31 | ||
Banche Popolari Unite Scrl | 3.48 | ||
Telecom Italia SpA RNC | 3.42 | ||
Capitalia SpA | 3.34 | ||
TOTAL | 68.85 | % | |
6 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES® MSCI NETHERLANDS INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 16.30%, while the Index returned 17.17%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
13.97% | 13.74 | % | 14.46 | % | 2.10 | % | 2.09 | % | 3.05 | % | 6.50 | % | 6.48 | % | 7.80 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
13.97% | 13.74 | % | 14.46 | % | 10.96 | % | 10.90 | % | 16.21 | % | 87.32 | % | 87.00 | % | 111.41 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 40.12 | % | |
Consumer Non-Cyclical | 21.09 | ||
Industrial | 14.56 | ||
Communications | 12.72 | ||
Basic Materials | 6.34 | ||
Technology | 3.85 | ||
Consumer Cyclical | 1.30 | ||
Short-Term and Other Net Assets | 0.02 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
ING Groep NV | 17.78 | % | |
ABN AMRO Holding NV | 12.76 | ||
Koninklijke Philips Electronics NV | 10.25 | ||
Unilever NV CVA | 8.96 | ||
AEGON NV | 4.97 | ||
Koninklijke KPN NV | 4.83 | ||
TNT NV | 4.31 | ||
Akzo Nobel NV | 4.18 | ||
Koninklijke Ahold NV | 3.65 | ||
Reed Elsevier NV | 3.47 | ||
TOTAL | 75.16 | % | |
FUND PERFORMANCE OVERVIEW | 7 |
Fund Performance Overview
iSHARES® MSCI SPAIN INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 13.79%, while the Index returned 14.34%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
13.60% | 13.77 | % | 14.28 | % | 11.59 | % | 11.57 | % | 11.29 | % | 14.65 | % | 14.63 | % | 14.98 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
13.60% | 13.77 | % | 14.28 | % | 73.02 | % | 72.90 | % | 70.72 | % | 290.63 | % | 290.05 | % | 302.09 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 42.31 | % | |
Communications | 17.80 | ||
Utilities | 14.96 | ||
Consumer Non-Cyclical | 7.70 | ||
Industrial | 6.60 | ||
Energy | 5.60 | ||
Consumer Cyclical | 2.88 | ||
Basic Materials | 1.27 | ||
Technology | 0.75 | ||
Short-Term and Other Net Assets | 0.13 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Banco Santander Central Hispano SA | 18.88 | % | |
Telefonica SA | 15.86 | ||
Banco Bilbao Vizcaya Argentaria SA | 14.16 | ||
Repsol YPF SA | 4.89 | ||
Endesa SA | 4.86 | ||
Iberdrola SA | 4.74 | ||
Banco Popular Espanol SA | 4.44 | ||
Altadis SA | 3.16 | ||
Actividades de Construcciones y Servicios SA | 2.90 | ||
Gas Natural SDG SA | 2.35 | ||
TOTAL | 76.24 | % | |
8 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES® MSCI SWEDEN INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 12.15%, while the Index returned 12.45%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
14.43% | 14.69 | % | 14.56 | % | 8.30 | % | 8.40 | % | 7.86 | % | 10.94 | % | 10.93 | % | 12.16 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
14.43% | 14.69 | % | 14.56 | % | 48.99 | % | 49.69 | % | 45.98 | % | 181.54 | % | 181.37 | % | 213.87 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Communications | 27.30 | % | |
Financial | 22.31 | ||
Industrial | 17.89 | ||
Consumer Cyclical | 17.51 | ||
Consumer Non-Cyclical | 7.85 | ||
Basic Materials | 5.74 | ||
Energy | 0.75 | ||
Technology | 0.61 | ||
Short-Term and Other Net Assets | 0.04 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Telefonaktiebolaget LM Ericsson Class B | 20.23 | % | |
Nordea Bank AB | 9.80 | ||
Hennes & Mauritz AB Class B | 6.93 | ||
Svenska Handelsbanken AB Class A | 5.41 | ||
Sandvik AB | 4.35 | ||
Skandinaviska Enskilda Banken AB Class A | 4.18 | ||
TeliaSonera AB | 3.99 | ||
Volvo AB Class B | 3.81 | ||
Svenska Cellulosa AB Class B | 3.27 | ||
Electrolux AB Series B | 3.16 | ||
TOTAL | 65.13 | % | |
FUND PERFORMANCE OVERVIEW | 9 |
Fund Performance Overview
iSHARES® MSCI SWITZERLAND INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 15.63%, while the Index returned 16.04%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
16.83% | 15.88 | % | 18.89 | % | 6.02 | % | 6.01 | % | 7.57 | % | 7.24 | % | 7.24 | % | 8.67 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
16.83% | 15.88 | % | 18.89 | % | 33.96 | % | 33.91 | % | 44.03 | % | 100.78 | % | 100.75 | % | 129.05 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Consumer Non-Cyclical | 45.93 | % | |
Financial | 28.33 | ||
Industrial | 9.30 | ||
Basic Materials | 7.41 | ||
Consumer Cyclical | 6.09 | ||
Communications | 1.92 | ||
Technology | 0.86 | ||
Short-Term and Other Net Assets | 0.16 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Novartis AG | 12.96 | % | |
Roche Holding AG Genusschein | 12.45 | ||
UBS AG Registered | 11.87 | ||
Nestle SA Registered | 11.86 | ||
Credit Suisse Group | 4.83 | ||
Zurich Financial Services AG | 4.79 | ||
Compagnie Financiere Richemont AG Class A | 3.78 | ||
Swiss Reinsurance Co. | 3.49 | ||
Holcim Ltd. Registered | 3.44 | ||
Syngenta AG | 3.30 | ||
TOTAL | 72.77 | % | |
10 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES® MSCI UNITED KINGDOM INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 6.97%, while the Index returned 7.32%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
7.77% | 8.81 | % | 8.55 | % | 6.12 | % | 6.22 | % | 7.01 | % | 8.48 | % | 8.53 | % | 9.18 | % |
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
7.77% | 8.81 | % | 8.55 | % | 34.61 | % | 35.21 | % | 40.32 | % | 125.16 | % | 126.08 | % | 140.06 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 26.97 | % | |
Consumer Non-Cyclical | 21.02 | ||
Energy | 18.42 | ||
Communications | 9.28 | ||
Consumer Cyclical | 7.08 | ||
Basic Materials | 6.81 | ||
Industrial | 4.81 | ||
Utilities | 4.39 | ||
Technology | 0.53 | ||
Diversified | 0.17 | ||
Short-Term and Other Net Assets | 0.52 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
BP PLC | 8.86 | % | |
HSBC Holdings PLC | 7.45 | ||
GlaxoSmithKline PLC | 5.71 | ||
Royal Dutch Shell PLC Class A | 4.61 | ||
Vodafone Group PLC | 4.55 | ||
Royal Bank of Scotland Group PLC | 4.11 | ||
Royal Dutch Shell PLC Class B | 3.35 | ||
Barclays PLC | 2.92 | ||
AstraZeneca PLC | 2.84 | ||
HBOS PLC | 2.77 | ||
TOTAL | 47.17 | % | |
FUND PERFORMANCE OVERVIEW | 11 |
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, 2005 to February 28, 2006.
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, 2005) | Ending Account Value (February 28, 2006) | Annualized Expense Ratio | Expenses Paid During Perioda (September 1, 2005 to February 28, 2006) | ||||||||
Austria | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,138.60 | 0.56 | % | $ | 2.97 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||
Belgium | ||||||||||||
Actual | 1,000.00 | 1,135.00 | 0.57 | 3.02 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.97 | 0.57 | 2.86 | ||||||||
EMU | ||||||||||||
Actual | 1,000.00 | 1,131.60 | 0.56 | 2.96 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||
France | ||||||||||||
Actual | 1,000.00 | 1,100.70 | 0.56 | 2.92 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 |
12 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Shareholder Expenses (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (September 1, 2005) | Ending Account Value (February 28, 2006) | Annualized Expense Ratio | Expenses Paid During Period a (September 1, 2005 to February 28, 2006) | ||||||||
Germany | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,161.70 | 0.56 | % | $ | 3.00 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||
Italy | ||||||||||||
Actual | 1,000.00 | 1,075.50 | 0.57 | 2.93 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.97 | 0.57 | 2.86 | ||||||||
Netherlands | ||||||||||||
Actual | 1,000.00 | 1,163.00 | 0.57 | 3.06 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.97 | 0.57 | 2.86 | ||||||||
Spain | ||||||||||||
Actual | 1,000.00 | 1,137.90 | 0.57 | 3.02 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.97 | 0.57 | 2.86 | ||||||||
Sweden | ||||||||||||
Actual | 1,000.00 | 1,121.50 | 0.57 | 3.00 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.97 | 0.57 | 2.86 | ||||||||
Switzerland | ||||||||||||
Actual | 1,000.00 | 1,156.30 | 0.56 | 2.99 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||
United Kingdom | ||||||||||||
Actual | 1,000.00 | 1,069.70 | 0.56 | 2.87 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 |
a | 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 |
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.81% | |||||
BANKS – 21.06% | |||||
Erste Bank der Oesterreichischen Sparkassen AG | 809,717 | $ | 49,234,640 | ||
Raiffeisen International Bank Holding AG1 | 174,528 | 14,565,671 | |||
63,800,311 | |||||
BUILDING MATERIALS – 4.86% | |||||
Wienerberger Baustoffindustrie AG | 317,443 | 14,718,753 | |||
14,718,753 | |||||
CHEMICALS – 0.77% | |||||
Lenzing AG | 10,555 | 2,327,070 | |||
2,327,070 | |||||
ELECTRIC – 6.60% | |||||
EVN AG | 45,854 | 4,548,497 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 33,229 | 15,450,737 | |||
19,999,234 | |||||
ENGINEERING & CONSTRUCTION – 2.63% | |||||
Flughafen Wien AG | 98,778 | 7,968,188 | |||
7,968,188 | |||||
ENVIRONMENTAL CONTROL – 0.47% | |||||
BWT AG2 | 32,522 | 977,114 | |||
Christ Water Technology AG1 | 38,885 | 435,790 | |||
1,412,904 | |||||
FOREST PRODUCTS & PAPER – 0.91% | |||||
Mayr-Melnhof Karton AG | 18,685 | 2,750,119 | |||
2,750,119 | |||||
INSURANCE – 4.57% | |||||
Generali Holding Vienna AG | 60,196 | 2,870,747 | |||
Wiener Staedtische Allgemeine Versicherung AG | 172,104 | 10,977,718 | |||
13,848,465 | |||||
IRON & STEEL – 8.52% | |||||
Boehler-Uddeholm AG | 62,519 | 11,732,325 | |||
Voestalpine AG2 | 120,594 | 14,062,945 | |||
25,795,270 | |||||
Security | Shares or Principal | Value | |||
MACHINERY – 2.67% | |||||
Andritz AG | 62,620 | $ | 8,101,215 | ||
8,101,215 | |||||
MACHINERY - CONSTRUCTION & MINING – 0.13% | |||||
Palfinger AG | 5,252 | 398,432 | |||
398,432 | |||||
MANUFACTURING – 1.29% | |||||
RHI AG1 | 137,057 | 3,910,311 | |||
3,910,311 | |||||
OIL & GAS – 17.98% | |||||
OMV AG | 877,791 | 54,472,736 | |||
54,472,736 | |||||
REAL ESTATE – 13.44% | |||||
CA Immobilien Anlagen AG1 | 471,468 | 11,944,789 | |||
Immofinanz Immobilien Anlage AG 1 | 1,428,645 | 14,580,265 | |||
Meinl European Land Ltd.1 | 770,125 | 14,185,905 | |||
40,710,959 | |||||
TELECOMMUNICATIONS – 13.91% | |||||
Telekom Austria AG | 1,844,462 | 42,133,986 | |||
42,133,986 | |||||
TOTAL COMMON STOCKS | 302,347,953 | ||||
SHORT-TERM INVESTMENTS – 0.26% | |||||
CERTIFICATES OF DEPOSIT3– 0.00% | |||||
Toronto-Dominion Bank | |||||
3.94%, 07/10/06 | 3,614 | 3,614 | |||
Wells Fargo Bank N.A. | |||||
4.78%, 12/05/06 | 5,782 | 5,782 | |||
9,396 | |||||
COMMERCIAL PAPER3 – 0.01% | |||||
Amstel Funding Corp. | |||||
4.40%, 05/08/06 | 3,614 | 3,584 | |||
CC USA Inc. | |||||
4.23%, 04/21/06 | 2,168 | 2,155 | |||
Edison Asset Securitization LLC | |||||
4.37%, 05/08/06 | 3,614 | 3,584 | |||
Galaxy Funding Inc. | �� | ||||
4.23%, 04/18/06 | 2,074 | 2,063 |
14 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | $ | 3,614 | $ | 3,581 | ||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 7,589 | 7,559 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 4,337 | 4,318 | ||||
26,844 | ||||||
MEDIUM-TERM NOTES3 – 0.01% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 2,241 | 2,240 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 4,337 | 4,336 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 7,228 | 7,247 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 9,034 | 9,035 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 1,446 | 1,427 | ||||
24,285 | ||||||
MONEY MARKET FUNDS – 0.01% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 18,751 | 18,751 | ||||
18,751 | ||||||
REPURCHASE AGREEMENTS3 – 0.06% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $10,842 (collateralized by non-U.S. Government debt securities, value $11,945, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 10,841 | 10,841 | |||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $36,143 (collateralized by U.S. Government obligations, value $36,933, 3.69% to 10.00%, 5/1/09 to 1/1/36). | 36,138 | 36,138 | ||||
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $18,071 (collateralized by non-U.S. Government debt securities, value $19,003, 1.01%, 9/19/35).6 | $ | 18,069 | $ | 18,069 | ||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $36,143 (collateralized by U.S. Government obligations, value $36,920, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 36,138 | 36,138 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $36,143 (collateralized by non-U.S. Government debt securities, value $38,006, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 36,138 | 36,138 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $8,674 (collateralized by U.S. Government obligations, value $8,861, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 8,673 | 8,673 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $7,229 (collateralized by non-U.S. Government debt securities, value $7,457, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 7,228 | 7,228 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $36,143 (collateralized by non-U.S. Government debt securities, value $37,948, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 36,138 | 36,138 | ||||
189,363 | ||||||
TIME DEPOSITS3 – 0.02% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 14,455 | 14,455 |
SCHEDULESOF INVESTMENTS | 15 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | $ | 25,296 | $ | 25,296 | ||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 13,006 | 13,006 | ||||
52,757 | ||||||
VARIABLE& FLOATING RATE NOTES3 - 0.15% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 20,309 | 20,313 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 16,985 | 16,985 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 2,891 | 2,891 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 2,168 | 2,170 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 23,490 | 23,496 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 4,698 | 4,698 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 7,228 | 7,228 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 9,324 | 9,323 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 7,228 | 7,228 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 19,442 | 19,441 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 1,807 | 1,807 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 7,228 | 7,228 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 1,807 | 1,807 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 7,228 | 7,228 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 14,455 | 14,455 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 1,446 | 1,445 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 3,252 | 3,255 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 1,807 | 1,807 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 7,228 | 7,228 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 7,228 | 7,228 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 19,876 | 19,876 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 2,530 | 2,530 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 6,505 | 6,505 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 7,572 | 7,567 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 5,782 | 5,782 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 3,975 | 3,975 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 21,610 | 21,619 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 14,455 | 14,455 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/077 | 5,421 | 5,421 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 19,514 | 19,516 | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/077 | 12,648 | 12,648 | ||||
Northern Rock PLC | ||||||
4.61%, 02/02/077 | 8,673 | 8,673 | ||||
Permanent Financing PLC | ||||||
4.53%, 03/10/06 - 06/12/067 | 19,659 | 19,659 |
16 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
Pfizer Investment Capital PLC | |||||||
4.53%, 02/15/077 | $ | 18,069 | $ | 18,069 | |||
Principal Life Income Funding Trusts | |||||||
4.70%, 05/10/06 | 5,421 | 5,421 | |||||
Sedna Finance Inc. | |||||||
4.54%, 09/20/067 | 2,168 | 2,168 | |||||
Sigma Finance Inc. | |||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 8,023 | 8,023 | |||||
Skandinaviska Enskilda Bank NY | |||||||
4.56%, 03/19/077 | 7,228 | 7,228 | |||||
Societe Generale | |||||||
4.54%, 03/02/077 | 5,059 | 5,059 | |||||
Strips III LLC | |||||||
4.62%, 07/24/067,8 | 1,865 | 1,865 | |||||
SunTrust Bank | |||||||
4.62%, 04/28/06 | 10,841 | 10,841 | |||||
Tango Finance Corp. | |||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 16,117 | 16,116 | |||||
Toyota Motor Credit Corp. | |||||||
4.57%, 04/10/06 | 3,252 | 3,252 | |||||
UniCredito Italiano SpA | |||||||
4.43%, 06/14/06 | 9,396 | 9,395 | |||||
Union Hamilton Special Funding LLC | |||||||
4.52%, 03/28/067 | 7,228 | 7,228 | |||||
US Bank N.A. | |||||||
4.54%, 09/29/06 | 3,252 | 3,252 | |||||
Variable Funding Capital Corp. | |||||||
4.52%, 03/09/06 - 03/13/06 | 10,841 | 10,842 | |||||
Wachovia Asset Securitization Inc. | |||||||
4.57%, 03/26/067 | 13,794 | 13,794 | |||||
Wells Fargo & Co. | |||||||
4.56%, 03/15/077 | 3,614 | 3,614 | |||||
WhistleJacket Capital Ltd. | |||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 3,614 | 3,614 | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 7,589 | 7,589 | |||||
Winston Funding Ltd. | |||||||
4.68%, 04/23/067 | 5,160 | 5,160 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 10,841 | 10,841 | |||||
468,858 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 790,254 | ||||||
TOTAL INVESTMENTS IN SECURITIES - 100.07% | 303,138,207 | ||||||
Other Assets, Less Liabilities - (0.07)% | (210,335 | ) | |||||
NET ASSETS - 100.00% | $ | 302,927,872 | |||||
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 this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 17 |
Schedule of Investments (Unaudited)
iSHARES® MSCI BELGIUM INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS - 99.66% | |||||
BANKS - 48.97% | |||||
Banque Nationale de Belgique | 96 | $ | 366,259 | ||
Dexia Group | 326,016 | 8,100,353 | |||
Fortis | 526,944 | 18,784,645 | |||
KBC Groupe | 110,400 | 11,530,298 | |||
38,781,555 | |||||
BEVERAGES - 5.03% | |||||
InBev | 86,208 | 3,986,894 | |||
3,986,894 | |||||
CHEMICALS - 4.94% | |||||
Solvay SA | 35,328 | 3,910,824 | |||
3,910,824 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT - 1.66% | |||||
Bekaert NV | 12,768 | 1,311,431 | |||
1,311,431 | |||||
ELECTRONICS - 0.74% | |||||
Barco NV | 7,008 | 588,212 | |||
588,212 | |||||
FOOD - 6.62% | |||||
Colruyt SA | 14,880 | 2,144,848 | |||
Delhaize Group | 46,368 | 3,095,806 | |||
5,240,654 | |||||
HOLDING COMPANIES - DIVERSIFIED - 8.41% | |||||
Groupe Bruxelles Lambert SA1 | 35,040 | 3,849,699 | |||
Sofina SA | 30,528 | 2,811,669 | |||
6,661,368 | |||||
MANUFACTURING - 1.51% | |||||
AGFA-Gevaert NV | 60,000 | 1,196,065 | |||
1,196,065 | |||||
MINING - 4.52% | |||||
Umicore | 25,152 | 3,577,505 | |||
3,577,505 | |||||
PHARMACEUTICALS - 4.92% | |||||
Omega Pharma SA | 15,360 | 831,592 | |||
UCB SA | 64,704 | 3,066,448 | |||
3,898,040 | |||||
REAL ESTATE INVESTMENT TRUSTS - 4.21% | |||||
Cofinimmo | 21,024 | 3,331,253 | |||
3,331,253 | |||||
Security | Shares or Principal | Value | |||
RETAIL - 1.13% | |||||
SA D’Ieteren NV | 2,976 | $ | 893,421 | ||
893,421 | |||||
TELECOMMUNICATIONS - 6.01% | |||||
Belgacom SA | 108,480 | 3,264,423 | |||
Mobistar SA | 21,312 | 1,497,874 | |||
4,762,297 | |||||
TRANSPORTATION - 0.99% | |||||
Compagnie Maritime Belge SA | 12,288 | 398,197 | |||
Euronav SA | 13,440 | 390,501 | |||
788,698 | |||||
TOTAL COMMON STOCKS | 78,928,217 | ||||
SHORT-TERM INVESTMENTS - 0.15% | |||||
CERTIFICATES OF DEPOSIT2 - 0.00% | |||||
Toronto-Dominion Bank | |||||
3.94%, 07/10/06 | 288 | 292 | |||
Wells Fargo Bank N.A. | |||||
4.78%, 12/05/06 | 460 | 460 | |||
752 | |||||
COMMERCIAL PAPER2 - 0.00% | |||||
Amstel Funding Corp. | |||||
4.40%, 05/08/06 | 288 | 285 | |||
CC USA Inc. | |||||
4.23%, 04/21/06 | 173 | 172 | |||
Edison Asset Securitization LLC | |||||
4.37%, 05/08/06 | 288 | 285 | |||
Galaxy Funding Inc. | |||||
4.23%, 04/18/06 | 165 | 164 | |||
Grampian Funding LLC | |||||
4.41%, 05/15/06 | 288 | 285 | |||
Nordea North America Inc. | |||||
4.16%, 04/04/06 | 604 | 602 | |||
Sigma Finance Inc. | |||||
4.16%, 04/06/06 | 345 | 344 | |||
2,137 | |||||
MEDIUM-TERM NOTES2 - 0.00% | |||||
Dorada Finance Inc. | |||||
3.93%, 07/07/06 | 178 | 178 |
18 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BELGIUM INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | $ | 345 | $ | 345 | ||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 575 | 577 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 719 | 719 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 115 | 114 | ||||
1,933 | ||||||
MONEY MARKET FUNDS – 0.07% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%3,4 | 52,521 | 52,521 | ||||
52,521 | ||||||
REPURCHASE AGREEMENTS 2– 0.02% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $863 (collateralized by non-U.S. Government debt securities, value $951, 0.00% to 9.40%, 11/15/15 to 6/12/47)5 | $ | 863 | 863 | |||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $2,877 (collateralized by U.S. Government obligations, value $2,941, 3.69% to 10.00%, 5/1/09 to 1/1/36) | 2,877 | 2,877 | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $1,439 (collateralized by non-U.S. Government debt securities, value $1,513, 1.01%, 9/19/35)5 | 1,439 | 1,439 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $2,877 (collateralized by U.S. Government obligations, value $2,940, 4.50% to 7.50%, 9/1/09 to 11/1/35) | 2,877 | 2,877 | ||||
Security | Principal | Value | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $2,877 (collateralized by non-U.S. Government debt securities, value $3,026, 0.00% to 10.00%, 8/15/07 to 2/1/16)5 | 2,877 | $ | 2,877 | |||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $691 (collateralized by U.S. Government obligations, value $706, 3.99% to 5.51%, 7/1/32 to 2/1/36) | 691 | 691 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $575 (collateralized by non-U.S. Government debt securities, value $594, 0.00% to 7.88%, 5/15/08 to 1/15/16)5 | 575 | 575 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $2,877 (collateralized by non-U.S. Government debt securities, value $3,021, 0.00% to 7.16%, 3/1/06 to 3/25/35)5 | 2,877 | 2,877 | ||||
15,076 | ||||||
TIME DEPOSITS2 – 0.01% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 1,151 | 1,151 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 2,014 | 2,014 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 1,036 | 1,036 | ||||
4,201 | ||||||
VARIABLE & FLOATING RATE NOTES2– 0.05% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/076 | 1,617 | 1,618 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 1,352 | 1,353 |
SCHEDULESOF INVESTMENTS | 19 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BELGIUM INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | $ | 230 | $ | 230 | ||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 173 | 173 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/066 | 1,870 | 1,871 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/076 | 374 | 374 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/076 | 575 | 575 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/066 | 742 | 743 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/076 | 575 | 575 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/066 | 1,548 | 1,548 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/066 | 144 | 144 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 575 | 575 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/066 | 144 | 144 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/066 | 575 | 575 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/076 | 1,151 | 1,151 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/066 | 115 | 115 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 259 | 259 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 144 | 144 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 575 | 575 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/076 | 575 | 575 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/066 | 1,583 | 1,582 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 201 | 201 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/066 | 518 | 518 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/076 | 603 | 603 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/066 | 460 | 460 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 317 | 316 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/076 | 1,721 | 1,721 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/066 | 1,151 | 1,151 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/076 | 432 | 432 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/076 | 1,554 | 1,553 | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/076 | 1,007 | 1,007 | ||||
Northern Rock PLC | ||||||
4.61%, 02/02/076 | 691 | 691 | ||||
Permanent Financing PLC | ||||||
4.53%, 03/10/06 - 06/12/066 | 1,565 | 1,566 | ||||
Pfizer Investment Capital PLC | ||||||
4.53%, 02/15/076 | 1,439 | 1,439 | ||||
Principal Life Income Funding Trusts | ||||||
4.70%, 05/10/06 | 432 | 432 | ||||
Sedna Finance Inc. | ||||||
4.54%, 09/20/066 | 173 | 173 | ||||
Sigma Finance Inc. | ||||||
4.53% - 4.55%, 03/20/06 - 08/15/066 | 639 | 639 | ||||
Skandinaviska Enskilda Bank NY | ||||||
4.56%, 03/19/076 | 575 | 575 | ||||
Societe Generale | ||||||
4.54%, 03/02/076 | 403 | 403 | ||||
Strips III LLC | ||||||
4.62%, 07/24/066,7 | 148 | 148 |
20 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BELGIUM INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
SunTrust Bank | ||||||
4.62%, 04/28/06 | $ | 863 | $ | 863 | ||
Tango Finance Corp. | ||||||
4.53% - 4.54%, 05/25/06 - 09/27/066 | 1,283 | 1,283 | ||||
Toyota Motor Credit Corp. | ||||||
4.57%, 04/10/06 | 259 | 259 | ||||
UniCredito Italiano SpA | ||||||
4.43%, 06/14/06 | 748 | 748 | ||||
Union Hamilton Special Funding LLC | ||||||
4.52%, 03/28/066 | 575 | 575 | ||||
US Bank N.A. | ||||||
4.54%, 09/29/06 | 259 | 259 | ||||
Variable Funding Capital Corp. | ||||||
4.52%, 03/09/06 - 03/13/06 | 863 | 863 | ||||
Wachovia Asset Securitization Inc. | ||||||
4.57%, 03/26/066 | 1,098 | 1,098 | ||||
Wells Fargo & Co. | ||||||
4.56%, 03/15/076 | 288 | 288 | ||||
WhistleJacket Capital Ltd. | ||||||
4.53% - 4.56%, 06/22/06 - 07/28/066 | 288 | 287 | ||||
White Pine Finance LLC | ||||||
4.53% - 4.57%, 03/27/06 - 06/20/066 | 604 | 604 | ||||
Winston Funding Ltd. | ||||||
4.68%, 04/23/066 | 411 | 411 | ||||
World Savings Bank | ||||||
4.52%, 03/09/06 | 863 | 863 | ||||
37,328 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 113,948 | |||||
TOTAL INVESTMENTS IN SECURITIES – 99.81% | 79,042,165 | |||||
Other Assets, Less Liabilities – 0.19% | 153,616 | |||||
NET ASSETS – 100.00% | $ | 79,195,781 | ||||
1 | All or a portion of this security represents a security on loan. See Note 5. |
2 | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
3 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
4 | The rate quoted is the annualized seven-day yield of the fund at period end. |
5 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
6 | This security or a portion of these securities 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. |
7 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 21 |
Schedule of Investments (Unaudited)
iSHARES® MSCI EMU INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 98.47% | |||||
AUSTRIA – 1.57% | |||||
Andritz AG | 3,696 | $ | 478,155 | ||
Boehler-Uddeholm AG | 3,168 | 594,507 | |||
Erste Bank der Oesterreichischen Sparkassen AG | 53,064 | 3,226,543 | |||
Flughafen Wien AG | 530 | 42,754 | |||
Immofinanz Immobilien Anlage AG1 | 155,232 | 1,584,245 | |||
Mayr-Melnhof Karton AG | 3,180 | 468,043 | |||
Meinl European Land Ltd.1 | 34,758 | 640,251 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 2,385 | 1,108,971 | |||
OMV AG | 53,328 | 3,309,355 | |||
Raiffeisen International Bank Holding AG1 | 10,296 | 859,278 | |||
RHI AG1 | 11,088 | 316,347 | |||
Telekom Austria AG | 105,072 | 2,400,213 | |||
Voestalpine AG | 6,600 | 769,652 | |||
Wiener Staedtische Allgemeine Versicherung AG | 6,336 | 404,144 | |||
Wienerberger Baustoffindustrie AG | 23,320 | 1,081,269 | |||
17,283,727 | |||||
BELGIUM – 3.70% | |||||
AGFA-Gevaert NV | 29,150 | 581,088 | |||
Barco NV | 4,505 | 378,124 | |||
Bekaert NV | 6,072 | 623,669 | |||
Belgacom SA | 48,048 | 1,445,879 | |||
Cofinimmo | 2,915 | 461,882 | |||
Colruvt SA | 5,300 | 763,958 | |||
Compagnie Maritime Belge SA | 5,658 | 183,349 | |||
Delhaize Group | 23,055 | 1,539,290 | |||
Dexia Group | 174,240 | 4,329,252 | |||
Euronav SA | 7,920 | 230,117 | |||
Fortis | 372,768 | 13,288,536 | |||
Groupe Bruxelles Lambert SA2 | 21,912 | 2,407,380 | |||
InBev | 56,232 | 2,600,583 | |||
KBC Groupe2 | 57,552 | 6,010,794 | |||
Mobistar SA | 9,022 | 634,095 | |||
Omega Pharma SA | 6,890 | 373,025 | |||
SA D’Ieteren NV | 822 | 246,771 | |||
Solvay SA | 20,670 | 2,288,178 | |||
Suez SA Strips1 | 17,520 | 209 | |||
UCB SA | 27,192 | 1,288,682 | |||
Umicore | 7,950 | 1,130,772 | |||
40,805,633 | |||||
FINLAND – 4.42% | |||||
Amer Group OYJ | 19,875 | 415,864 | |||
Cargotec Corp. Class B | 13,829 | 560,579 | |||
Elisa OYJ Class A | 48,840 | 986,408 | |||
Fortum OYJ | 135,696 | 3,284,206 | |||
KCI Konecranes OYJ | 5,565 | 350,321 | |||
Kesko OYJ Class B | 20,592 | 647,405 | |||
Kone OYJ | 25,970 | 1,074,407 | |||
Metso OYJ | 33,528 | 1,235,189 | |||
Neste Oil OYJ1 | 40,656 | 1,245,249 | |||
Nokia OYJ | 1,281,192 | 23,981,768 | |||
Nokian Renkaat OYJ | 36,570 | 582,068 | |||
Orion OYJ Class B | 27,456 | 591,838 | |||
Outokumpu OYJ | 38,280 | 695,087 | |||
Rautaruukki OYJ | 28,776 | 970,579 | |||
Sampo OYJ Class A | 126,229 | 2,531,352 | |||
Stora Enso OYJ Class R | 201,696 | 2,880,855 | |||
TietoEnator OYJ | 23,590 | 848,818 | |||
UPM-Kymmene OYJ | 170,280 | 3,613,691 | |||
Uponor OYJ | 23,496 | 614,888 | |||
Wartsila OYJ Class B | 19,403 | 707,877 | |||
YIT-Yhtyma OYJ | 18,020 | 915,233 | |||
48,733,682 | |||||
FRANCE – 28.94% | |||||
Accor SA | 67,958 | 4,087,607 | |||
Air France - KLM | 36,696 | 849,641 | |||
Alcatel SA Class A1 | 390,192 | 5,256,832 | |||
Alstom1 | 34,608 | 2,962,568 | |||
Arcelor | 162,096 | 5,925,320 | |||
Atos Origin SA1 | 21,384 | 1,491,462 | |||
Autoroutes du Sud de la France | 18,815 | 1,137,312 | |||
AXA | 462,000 | 16,326,290 | |||
BNP Paribas SA | 238,656 | 22,094,346 | |||
Bouygues SA | 55,704 | 2,926,161 | |||
Business Objects SA1 | 21,730 | 804,172 | |||
Cap Gemini SA1 | 38,016 | 1,878,704 |
22 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Carrefour SA | 178,464 | $ | 8,864,153 | ||
Casino Guichard Perrachon SA | 12,985 | 809,675 | |||
CNP Assurances | 10,600 | 1,016,083 | |||
Compagnie de Saint-Gobain | 99,000 | 6,609,834 | |||
Compagnie Generale des Etablissements Michelin Class B | 47,553 | 2,902,787 | |||
Compagnie Generale d’Optique Essilor International SA | 29,040 | 2,503,239 | |||
Credit Agricole SA | 187,440 | 6,851,754 | |||
Dassault Systemes SA | 18,550 | 1,035,040 | |||
European Aeronautic Defense and Space Co. | 79,471 | 2,914,488 | |||
France Telecom | 529,056 | 11,511,498 | |||
Gaz de France1 | 47,064 | 1,628,933 | |||
Gecina SA | 2,376 | 297,159 | |||
Groupe Danone | 73,920 | 8,548,719 | |||
Hermes International | 6,072 | 1,518,814 | |||
Imerys SA | 11,660 | 996,052 | |||
Klepierre | 6,916 | 798,174 | |||
Lafarge SA | 56,760 | 5,938,228 | |||
Lagardere S.C.A. | 37,100 | 2,870,688 | |||
L’Air Liquide SA | 34,584 | 6,828,147 | |||
L’Oreal SA | 92,400 | 8,179,670 | |||
LVMH Moet Hennessy Louis Vuitton SA | 75,504 | 6,863,998 | |||
Neopost SA | 9,275 | 928,329 | |||
PagesJaunes SA | 36,835 | 985,926 | |||
Pernod Ricard SA | 22,440 | 3,841,887 | |||
PPR SA | 21,730 | 2,505,264 | |||
PSA Peugeot Citroen SA | 48,840 | 2,849,169 | |||
Publicis Groupe | 41,193 | 1,573,069 | |||
Renault SA | 58,608 | 5,635,450 | |||
Safran SA | 55,846 | 1,422,200 | |||
Sanofi-Aventis | 327,096 | 27,844,587 | |||
Schneider Electric SA | 71,808 | 7,341,322 | |||
SCOR | 269,153 | 648,213 | |||
Societe BIC SA | 7,685 | 468,659 | |||
Societe des Autoroutes du Nord et de l’Est de la France1 | 6,864 | 474,649 | |||
Societe Des Autoroutes Paris-Rhin-Rhone | 10,416 | 760,632 | |||
Societe Generale Class A | 110,880 | 15,718,185 | |||
Societe Television Francaise 1 | 36,708 | 1,106,382 | |||
Sodexho Alliance SA | 33,720 | 1,436,441 | |||
STMicroelectronics NV | 203,808 | 3,462,609 | |||
Suez SA | 311,256 | 11,463,124 | |||
Technip SA | 25,705 | 1,546,130 | |||
Thales SA | 26,400 | 1,203,305 | |||
Thomson | 82,386 | 1,416,400 | |||
Total SA | 174,504 | 43,899,055 | |||
Unibail Holding | 13,780 | 2,259,016 | |||
Valeo SA | 24,107 | 965,429 | |||
Veolia Environnement | 106,128 | 5,543,328 | |||
Vinci SA | 50,160 | 4,634,753 | |||
Vivendi Universal SA | 352,440 | 10,694,003 | |||
Zodiac SA | 12,985 | 815,094 | |||
318,670,158 | |||||
GERMANY – 20.80% | |||||
Adidas-Salomon AG | 15,312 | 2,994,305 | |||
Allianz AG | 119,064 | 19,220,579 | |||
ALTANA AG | 22,525 | 1,210,374 | |||
BASF AG | 169,752 | 12,802,990 | |||
Bayer AG | 207,504 | 8,359,533 | |||
Beiersdorf AG | 5,066 | 688,613 | |||
Celesio AG | 11,395 | 1,058,189 | |||
Commerzbank AG | 186,384 | 6,786,487 | |||
Continental AG | 41,448 | 4,242,890 | |||
DaimlerChrysler AG | 287,760 | 15,953,307 | |||
Deutsche Bank AG | 156,288 | 17,226,612 | |||
Deutsche Boerse AG | 31,416 | 3,954,576 | |||
Deutsche Lufthansa AG | 63,888 | 1,055,723 | |||
Deutsche Post AG | 223,344 | 5,834,236 | |||
Deutsche Postbank AG | 13,728 | 971,066 | |||
Deutsche Telekom AG | 855,096 | 13,498,024 | |||
Douglas Holding AG | 9,275 | 426,180 | |||
E.ON AG | 196,152 | 21,723,462 | |||
EPCOS AG1 | 19,800 | 269,115 | |||
Fresenius Medical Care AG | 18,239 | 1,961,439 | |||
Heidelberger Druckmaschinen AG | 18,020 | 774,725 | |||
Hochtief AG | 18,550 | 996,558 | |||
Hypo Real Estate Holding AG | 41,988 | 2,763,323 | |||
Infineon Technologies AG1 | 204,600 | 1,888,052 |
SCHEDULESOF INVESTMENTS | 23 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2006
Security | Shares | Value | |||
IVG Immobilien AG | 21,465 | $ | 556,106 | ||
KarstadtQuelle AG1 | 17,952 | 439,623 | |||
Linde AG | 27,030 | 2,141,452 | |||
MAN AG | 44,616 | 2,812,868 | |||
Merck KGaA | 15,840 | 1,586,360 | |||
METRO AG | 46,758 | 2,486,884 | |||
MLP AG | 21,480 | 484,020 | |||
Muenchener Rueckversicherungs- Gesellschaft AG | 59,928 | 8,127,342 | |||
Premiere AG1 | 18,216 | 304,921 | |||
Puma AG | 3,960 | 1,424,891 | |||
RWE AG | 131,472 | 11,263,875 | |||
SAP AG | 69,432 | 14,159,571 | |||
Schering AG | 51,744 | 3,721,248 | |||
Siemens AG | 252,120 | 23,145,435 | |||
Suedzucker AG | 20,328 | 538,283 | |||
ThyssenKrupp AG | 115,678 | 2,930,738 | |||
TUI AG2 | 85,008 | 1,678,369 | |||
Volkswagen AG | 56,496 | 3,951,182 | |||
Wincor Nixdorf AG | 4,505 | 574,706 | |||
228,988,232 | |||||
GREECE – 1.55% | |||||
Coca-Cola Hellenic Bottling SA ADR | 37,060 | 1,119,212 | |||
Hellenic Telecommunications Organization SA ADR1 | 468,081 | 4,952,297 | |||
National Bank of Greece SA ADR | 1,054,221 | 10,953,356 | |||
17,024,865 | |||||
IRELAND – 2.73% | |||||
Allied Irish Banks PLC | 274,296 | 6,550,399 | |||
Bank of Ireland | 315,499 | 5,623,498 | |||
C&C Group PLC | 79,728 | 532,312 | |||
CRH PLC | 172,128 | 5,635,330 | |||
DCC PLC | 27,030 | 615,527 | |||
DEPFA Bank PLC | 113,520 | 1,885,345 | |||
Eircom Group PLC | 235,224 | 619,785 | |||
Elan Corp. PLC1 | 134,376 | 1,792,748 | |||
Fyffes PLC | 103,851 | 260,014 | |||
Grafton Group PLC1 | 69,018 | 847,553 | |||
Greencore Group PLC | 63,983 | 262,416 | |||
IAWS Group PLC | 39,072 | 652,170 | |||
Independent News & Media PLC | 194,835 | 620,220 | |||
Irish Life & Permanent PLC | 90,071 | 1,985,588 | |||
Kerry Group PLC Class A | 40,392 | 893,801 | |||
Kingspan Group PLC | 39,603 | 572,266 | |||
Paddy Power PLC | 30,096 | 475,436 | |||
Ryanair Holdings PLC1 | 21,760 | 198,726 | |||
30,023,134 | |||||
ITALY – 11.29% | |||||
Alleanza Assicurazioni SpA2 | 132,264 | 1,638,417 | |||
Arnoldo Mondadori Editore SpA | 34,450 | 325,914 | |||
Assicurazioni Generali SpA | 297,528 | 10,673,758 | |||
Autogrill SpA | 56,760 | 833,044 | |||
Autostrade SpA | 94,046 | 2,401,746 | |||
Banca Antonveneta SpA | 29,304 | 923,403 | |||
Banca Fideuram SpA | 105,176 | 638,266 | |||
Banca Intesa SpA | 1,153,152 | 6,819,234 | |||
Banca Monte dei Paschi di Siena SpA2 | 348,480 | 1,803,163 | |||
Banca Nazionale del Lavoro SpA1 | 357,192 | 1,241,388 | |||
Banca Popolare di Milano Scrl | 130,999 | 1,657,108 | |||
Banca Popolare di Verona e Novara Scrl | 119,592 | 2,870,207 | |||
Banche Popolari Unite Scrl | 107,031 | 2,689,971 | |||
Benetton Group SpA | 11,406 | 145,507 | |||
Bulgari SpA | 49,632 | 589,371 | |||
Capitalia SpA | 547,623 | 4,139,408 | |||
Enel SpA | 1,364,088 | 11,335,547 | |||
ENI SpA | 825,000 | 23,567,206 | |||
Fiat SpA1,2 | 149,688 | 1,620,467 | |||
Finmeccanica SpA | 97,680 | 2,139,351 | |||
Gruppo Editoriale L’Espresso SpA2 | 54,443 | 279,598 | |||
Italcementi SpA2 | 30,624 | 627,267 | |||
Lottomatica SpA1 | 17,952 | 717,010 | |||
Luxottica Group SpA | 38,544 | 1,084,057 | |||
Mediaset SpA | 249,480 | 2,938,732 | |||
Mediobanca SpA | 148,489 | 3,106,982 | |||
Mediolanum SpA2 | 91,474 | 755,785 | |||
Pirelli SpA | 901,064 | 851,915 | |||
Sanpaolo IMI SpA | 352,176 | 6,218,450 | |||
Seat Pagine Gialle SpA1 | 1,192,752 | 585,888 | |||
Snam Rete Gas SpA | 209,880 | 922,095 | |||
Telecom Italia Media SpA1,2 | 302,280 | 153,528 |
24 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Telecom Italia SpA | 3,266,472 | $ | 8,772,251 | ||
Terna SpA | 365,967 | 963,186 | |||
Tiscali SpA1 | 92,721 | 273,326 | |||
UniCredito Italiano SpA | 2,468,928 | 17,970,552 | |||
124,273,098 | |||||
NETHERLANDS – 10.65% | |||||
ABN AMRO Holding NV | 564,960 | 16,468,874 | |||
AEGON NV | 444,643 | 7,342,240 | |||
Akzo Nobel NV | 86,626 | 4,399,722 | |||
ASML Holding NV1 | 149,688 | 3,107,085 | |||
Buhrmann NV | 34,715 | 583,170 | |||
Corio NV | 9,805 | 644,704 | |||
Euronext NV2 | 25,608 | 1,605,938 | |||
Getronics NV | 38,669 | 525,576 | |||
Hagemeyer NV1,2 | 163,977 | 660,795 | |||
Heineken NV | 73,920 | 2,784,943 | |||
ING Groep NV | 590,568 | 22,200,421 | |||
Koninklijke Ahold NV1 | 496,436 | 4,048,431 | |||
Koninklijke DSM NV | 45,408 | 1,889,405 | |||
Koninklijke KPN NV | 606,672 | 6,278,285 | |||
Koninklijke Numico NV1,2 | 54,648 | 2,367,048 | |||
Koninklijke Philips Electronics NV | 412,896 | 13,448,960 | |||
Oce NV | 24,645 | 426,641 | |||
QIAGEN NV1 | 48,878 | 738,924 | |||
Randstad Holdings NV | 12,672 | 709,783 | |||
Reed Elsevier NV | 200,112 | 2,705,537 | |||
Rodamco Europe NV | 11,925 | 1,093,332 | |||
SBM Offshore NV | 8,184 | 806,935 | |||
TNT NV | 125,929 | 4,100,292 | |||
Unilever NV CVA | 178,728 | 12,412,403 | |||
Vedior NV | 51,528 | 973,733 | |||
VNU NV | 73,523 | 2,382,539 | |||
Wereldhave NV | 5,565 | 593,157 | |||
Wolters Kluwer NV CVA | 89,011 | 1,954,792 | |||
117,253,665 | |||||
PORTUGAL – 0.98% | |||||
Banco BPI SA Registered | 128,081 | 691,752 | |||
Banco Commercial Portugues SA Class R | 616,707 | 1,830,820 | |||
Banco Espirito Santo SA | 50,733 | 835,922 | |||
Brisa-Auto Estradas de Portugal SA2 | 132,615 | 1,168,435 | |||
CIMPOR-Cimentos de Portugal SGPS SA | 83,688 | 511,856 | |||
Energias de Portugal SA | 551,232 | 1,925,615 | |||
Jeronimo Martins SGPS SA | 13,780 | 224,259 | |||
Portugal Telecom SGPS SA | 217,800 | 2,518,819 | |||
PT Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA | 32,736 | 396,930 | |||
Sonae Industria SGPS SA1 | 31,680 | 278,746 | |||
Sonae SGPS SA | 282,786 | 438,297 | |||
10,821,451 | |||||
SPAIN – 11.84% | |||||
Abertis Infraestructuras SA2 | 71,280 | 1,847,543 | |||
Acciona SA | 8,215 | 1,145,937 | |||
Acerinox SA2 | 64,680 | 992,467 | |||
Actividades de Construcciones y Servicios SA | 73,392 | 2,738,800 | |||
Altadis SA | 83,160 | 3,489,992 | |||
Antena 3 de Television SA2 | 22,790 | 605,107 | |||
Banco Bilbao Vizcaya Argentaria SA | 1,071,576 | 21,821,177 | |||
Banco Popular Espanol SA | 286,761 | 3,846,272 | |||
Banco Santander Central Hispano SA | 1,871,232 | 27,329,460 | |||
Cintra Concesiones de Infraestructuras de Transporte SA1 | 75,240 | 999,312 | |||
Corporacion Mapfre SA | 37,367 | 720,387 | |||
Ebro Puleva SA | 20,064 | 365,518 | |||
Endesa SA | 296,472 | 9,939,541 | |||
Fomento de Construcciones y Contratas SA | 13,780 | 937,286 | |||
Gamesa Corporacion Tecnologica SA | 62,832 | 1,088,463 | |||
Gas Natural SDG SA | 60,273 | 1,836,035 | |||
Grupo Ferrovial SA | 20,140 | 1,509,149 | |||
Iberdrola SA | 255,816 | 8,073,261 | |||
Iberia Lineas Aereas de Espana SA | 143,189 | 408,014 | |||
Inditex SA | 70,752 | 2,541,588 | |||
Indra Sistemas SA | 36,040 | 717,577 | |||
Inmobiliaria Colonial SA | 10,032 | 644,679 |
SCHEDULESOF INVESTMENTS | 25 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
Metrovacesa SA | 18,560 | $ | 1,383,010 | |||
NH Hoteles SA | 41,448 | 669,592 | ||||
Promotora de Informaciones SA | 26,235 | 486,071 | ||||
Repsol YPF SA | 295,416 | 8,255,796 | ||||
Sacyr Vallehermoso SA | 33,092 | 931,113 | ||||
Sociedad General de Aguas de Barcelona SA1 | 115 | 3,058 | ||||
Sociedad General de Aguas de Barcelona SA Class B | 20,879 | 577,517 | ||||
Sogecable SA1,2 | 12,936 | 520,216 | ||||
Telefonica Publicidad e Informacion SA | 58,683 | 618,489 | ||||
Telefonica SA | 1,377,288 | 21,248,407 | ||||
Union Fenosa SA | 46,464 | 1,744,996 | ||||
Zeltia SA2 | 54,384 | 377,365 | ||||
130,413,195 | ||||||
TOTAL COMMON STOCKS | 1,084,290,840 | |||||
PREFERRED STOCKS – 1.21% | ||||||
GERMANY – 0.68% | ||||||
Henkel KGaA | 17,952 | 1,978,304 | ||||
Porsche AG | 2,650 | 2,232,034 | ||||
ProSiebenSat.1 Media AG | 24,552 | 578,124 | ||||
RWE AG | 11,352 | 893,272 | ||||
Volkswagen AG | 35,245 | 1,816,982 | ||||
7,498,716 | ||||||
ITALY – 0.53% | ||||||
Banca Intesa SpA RNC | 311,789 | 1,716,465 | ||||
Telecom Italia SpA RNC | 1,784,640 | 4,104,405 | ||||
5,820,870 | ||||||
TOTAL PREFERRED STOCKS | 13,319,586 | |||||
SHORT-TERM INVESTMENTS – 0.71% | ||||||
CERTIFICATES OF DEPOSIT3– 0.01% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 32,385 | 32,385 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 51,816 | 51,816 | ||||
84,201 | ||||||
COMMERCIAL PAPER3– 0.02% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 32,385 | 32,116 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 19,431 | 19,314 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 32,385 | 32,118 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 18,589 | 18,484 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 32,385 | 32,087 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 68,008 | 67,741 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 38,862 | 38,700 | ||||
240,560 | ||||||
MEDIUM-TERM NOTES3 – 0.02% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 20,079 | 20,078 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 38,862 | 38,861 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 64,770 | 64,946 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 80,962 | 80,965 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 12,954 | 12,785 | ||||
217,635 | ||||||
MONEY MARKET FUNDS – 0.09% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 927,162 | 927,162 | ||||
927,162 | ||||||
REPURCHASE AGREEMENTS3– 0.15% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $97,167 (collateralized by non-U.S. Government debt securities, value $107,045, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 97,154 | 97,154 |
26 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $323,890 (collateralized by U.S. Government obligations, value $330,978, 3.69% to 10.00%, 5/1/09 to 1/1/36). | $ | 323,848 | $ | 323,848 | ||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $161,945 (collateralized by non-U.S. Government debt securities, value $170,293, 1.01%, 9/19/35).6 | 161,924 | 161,924 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $323,890 (collateralized by U.S. Government obligations, value $330,856, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 323,849 | 323,849 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $323,891 (collateralized by non-U.S. Government debt securities, value $340,587, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 323,849 | 323,849 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $77,734 (collateralized by U.S. Government obligations, value $79,407, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 77,724 | 77,724 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $64,778 (collateralized by non-U.S. Government debt securities, value $66,822, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 64,770 | 64,770 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $323,890 (collateralized by non-U.S. Government debt securities, value $340,068, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 323,849 | 323,849 | ||||
1,696,967 | ||||||
TIME DEPOSITS3 – 0.04% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 129,539 | 129,539 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 226,694 | 226,694 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 116,551 | 116,551 | ||||
472,784 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 0.38% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 182,003 | 182,032 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 152,209 | 152,207 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 25,908 | 25,908 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 19,431 | 19,446 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 210,502 | 210,556 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 42,100 | 42,100 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 64,770 | 64,770 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 83,553 | 83,552 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 64,770 | 64,770 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 174,231 | 174,227 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 16,192 | 16,192 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 64,770 | 64,770 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 16,192 | 16,192 |
SCHEDULESOF INVESTMENTS | 27 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | $ | 64,770 | $ | 64,770 | ||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 129,539 | 129,539 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 12,954 | 12,954 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 29,146 | 29,168 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 16,192 | 16,192 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 64,770 | 64,770 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 64,770 | 64,770 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 178,117 | 178,117 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 22,669 | 22,673 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 58,293 | 58,291 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 67,861 | 67,861 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 51,816 | 51,816 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 35,623 | 35,623 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 193,661 | 193,742 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 129,539 | 129,539 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/077 | 48,577 | 48,577 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 174,878 | 174,885 | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/077 | 113,347 | 113,347 | ||||
Northern Rock PLC | ||||||
4.61%, 02/02/077 | 77,724 | 77,726 | ||||
Permanent Financing PLC | ||||||
4.53%, 03/10/06 - 06/12/067 | 176,174 | 176,173 | ||||
Pfizer Investment Capital PLC | ||||||
4.53%, 02/15/077 | 161,924 | 161,924 | ||||
Principal Life Income Funding Trusts | ||||||
4.70%, 05/10/06 | 48,577 | 48,578 | ||||
Sedna Finance Inc. | ||||||
4.54%, 09/20/067 | 19,431 | 19,431 | ||||
Sigma Finance Inc. | ||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 71,894 | 71,893 | ||||
Skandinaviska Enskilda Bank NY | ||||||
4.56%, 03/19/077 | 64,770 | 64,770 | ||||
Societe Generale | ||||||
4.54%, 03/02/077 | 45,339 | 45,339 | ||||
Strips III LLC | ||||||
4.62%, 07/24/067,8 | 16,710 | 16,710 | ||||
SunTrust Bank | ||||||
4.62%, 04/28/06 | 97,155 | 97,155 | ||||
Tango Finance Corp. | ||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 144,436 | 144,430 | ||||
Toyota Motor Credit Corp. | ||||||
4.57%, 04/10/06 | 29,146 | 29,146 | ||||
UniCredito Italiano SpA | ||||||
4.43%, 06/14/06 | 84,201 | 84,192 | ||||
Union Hamilton Special Funding LLC | ||||||
4.52%, 03/28/067 | 64,770 | 64,770 | ||||
US Bank N.A. | ||||||
4.54%, 09/29/06 | 29,146 | 29,142 | ||||
Variable Funding Capital Corp. | ||||||
4.52%, 03/09/06 - 03/13/06 | 97,155 | 97,155 | ||||
Wachovia Asset Securitization Inc. | ||||||
4.57%, 03/26/067 | 123,613 | 123,613 | ||||
Wells Fargo & Co. | ||||||
4.56%, 03/15/077 | 32,385 | 32,387 | ||||
WhistleJacket Capital Ltd. | ||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 32,385 | 32,383 |
28 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | $ | 68,008 | $ | 68,009 | |||
Winston Funding Ltd. | |||||||
4.68%, 04/23/067 | 46,246 | 46,246 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 97,155 | 97,154 | |||||
4,201,682 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 7,840,991 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.39% | 1,105,451,417 | ||||||
Other Assets, Less Liabilities – (0.39)% | (4,330,070 | ) | |||||
NET ASSETS – 100.00% | $ | 1,101,121,347 | |||||
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 this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 29 |
Schedule of Investments (Unaudited)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.85% | |||||
ADVERTISING – 0.84% | |||||
PagesJaunes SA | 11,492 | $ | 307,595 | ||
Publicis Groupe | 12,682 | 484,297 | |||
791,892 | |||||
AEROSPACE & DEFENSE – 1.87% | |||||
European Aeronautic Defense and Space Co. | 22,440 | 822,956 | |||
Safran SA | 15,317 | 390,070 | |||
Thales SA | 7,106 | 323,889 | |||
Zodiac SA | 3,519 | 220,895 | |||
1,757,810 | |||||
AIRLINES – 0.27% | |||||
Air France - KLM | 11,203 | 259,389 | |||
259,389 | |||||
APPAREL – 0.53% | |||||
Hermes International | 1,989 | 497,517 | |||
497,517 | |||||
AUTO MANUFACTURERS – 2.61% | |||||
PSA Peugeot Citroen SA | 14,008 | 817,182 | |||
Renault SA | 17,000 | 1,634,634 | |||
2,451,816 | |||||
AUTO PARTS & EQUIPMENT – 1.13% | |||||
Compagnie Generale des Etablissements Michelin Class B | 13,141 | 802,169 | |||
Valeo SA | 6,392 | 255,985 | |||
1,058,154 | |||||
BANKS – 13.84% | |||||
BNP Paribas SA | 69,309 | 6,416,503 | |||
Credit Agricole SA | 54,621 | 1,996,637 | |||
Societe Generale Class A | 32,385 | 4,590,850 | |||
13,003,990 | |||||
BEVERAGES – 1.24% | |||||
Pernod Ricard SA | 6,817 | 1,167,119 | |||
1,167,119 | |||||
BUILDING MATERIALS – 4.09% | |||||
Compagnie de Saint-Gobain | 28,543 | 1,905,702 | |||
Imerys SA | 2,907 | 248,330 | |||
Lafarge SA | 16,133 | 1,687,833 | |||
3,841,865 | |||||
CHEMICALS – 2.11% | |||||
L’Air Liquide SA | 10,030 | 1,980,289 | |||
1,980,289 | |||||
COMMERCIAL SERVICES – 0.75% | |||||
Autoroutes du Sud de la France | 5,372 | 324,722 | |||
Societe des Autoroutes du Nord et de l’Est de la France1 | 2,108 | 145,769 | |||
Societe des Autoroutes Paris-Rhin-Rhone | 3,196 | 233,389 | |||
703,880 | |||||
COMPUTERS – 1.05% | |||||
Atos Origin SA1 | 6,239 | 435,149 | |||
Cap Gemini SA1 | 11,203 | 553,638 | |||
988,787 | |||||
COSMETICS & PERSONAL CARE – 2.56% | |||||
L’Oreal SA | 27,183 | 2,406,363 | |||
2,406,363 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.52% | |||||
Euronext NV2 | 7,786 | 488,278 | |||
488,278 | |||||
ENGINEERING & CONSTRUCTION – 2.46% | |||||
Bouygues SA | 16,830 | 884,089 | |||
Vinci SA | 15,436 | 1,426,277 | |||
2,310,366 | |||||
FOOD – 5.67% | |||||
Carrefour SA | 51,850 | 2,575,345 | |||
Casino Guichard Perrachon SA | 3,519 | 219,426 | |||
Groupe Danone | 21,879 | 2,530,268 | |||
5,325,039 | |||||
FOOD SERVICE – 0.40% | |||||
Sodexho Alliance SA | 8,908 | 379,473 | |||
379,473 | |||||
GAS – 0.59% | |||||
Gaz de France1 | 15,912 | 550,731 | |||
550,731 | |||||
HAND & MACHINE TOOLS – 2.26% | |||||
Schneider Electric SA | 20,757 | 2,122,101 | |||
2,122,101 |
30 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2006
Security | Shares | Value | ||||
HEALTH CARE - PRODUCTS – 0.83% | ||||||
Compagnie Generale d’Optique Essilor International SA | 9,010 | $ | 776,659 | |||
776,659 | ||||||
HOLDING COMPANIES - DIVERSIFIED – 2.17% | ||||||
LVMH Moet Hennessy Louis Vuitton SA | 22,491 | 2,044,636 | ||||
2,044,636 | ||||||
HOME FURNISHINGS – 0.44% | ||||||
Thomson | 24,072 | 413,852 | ||||
413,852 | ||||||
HOUSEHOLD PRODUCTS & WARES – 0.18% | ||||||
Societe BIC SA | 2,771 | 168,985 | ||||
168,985 | ||||||
INSURANCE – 5.69% | ||||||
AXA | 137,564 | 4,861,277 | ||||
CNP Assurances | 3,111 | 298,211 | ||||
SCOR | 77,571 | 186,818 | ||||
5,346,306 | ||||||
IRON & STEEL – 1.83% | ||||||
Arcelor | 46,971 | 1,716,996 | ||||
1,716,996 | ||||||
LODGING – 1.14% | ||||||
Accor SA | 17,816 | 1,071,615 | ||||
1,071,615 | ||||||
MACHINERY – 0.92% | ||||||
Alstom1 | 10,081 | 862,969 | ||||
862,969 | ||||||
MEDIA – 4.67% | ||||||
Lagardere S.C.A. | 11,101 | 858,962 | ||||
Societe Television Francaise 1 | 10,931 | 329,461 | ||||
Vivendi Universal SA | 105,417 | 3,198,643 | ||||
4,387,066 | ||||||
OFFICE & BUSINESS EQUIPMENT – 0.31% | ||||||
Neopost SA | 2,907 | 290,960 | ||||
290,960 | ||||||
OIL & GAS – 13.58% | ||||||
Total SA | 50,728 | 12,761,377 | ||||
12,761,377 | ||||||
Security | Shares or Principal | Value | ||||
OIL & GAS SERVICES – 0.51% | ||||||
Technip SA | 8,007 | $ | 481,613 | |||
481,613 | ||||||
PHARMACEUTICALS – 8.71% | ||||||
Sanofi-Aventis | 96,135 | 8,183,650 | ||||
8,183,650 | ||||||
REAL ESTATE – 1.11% | ||||||
Gecina SA | 856 | 107,057 | ||||
Klepierre | 2,159 | 249,170 | ||||
Unibail Holding | 4,199 | 688,360 | ||||
1,044,587 | ||||||
RETAIL – 0.75% | ||||||
PPR SA | 6,086 | 701,658 | ||||
701,658 | ||||||
SEMICONDUCTORS – 1.06% | ||||||
STMicroelectronics NV | 58,820 | 999,326 | ||||
999,326 | ||||||
SOFTWARE – 0.56% | ||||||
Business Objects SA1 | 6,392 | 236,552 | ||||
Dassault Systemes SA | 5,219 | 291,206 | ||||
527,758 | ||||||
TELECOMMUNICATIONS – 5.23% | ||||||
Alcatel SA Class A1 | 113,985 | 1,535,654 | ||||
France Telecom | 155,176 | 3,376,407 | ||||
4,912,061 | ||||||
WATER – 5.37% | ||||||
Suez SA | 91,919 | 3,385,248 | ||||
Veolia Environment | 31,722 | 1,656,918 | ||||
5,042,166 | ||||||
TOTAL COMMON STOCKS | 93,819,099 | |||||
SHORT-TERM INVESTMENTS – 0.43% | ||||||
CERTIFICATES OF DEPOSIT3– 0.01% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 1,627 | 1,627 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 2,603 | 2,603 | ||||
4,230 |
SCHEDULESOF INVESTMENTS | 31 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
COMMERCIAL PAPER3 – 0.01% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | $ | 1,627 | $ | 1,614 | ||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 976 | 970 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 1,627 | 1,614 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 934 | 929 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 1,627 | 1,612 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 3,417 | 3,403 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 1,953 | 1,944 | ||||
12,086 | ||||||
MEDIUM-TERM NOTES3 – 0.01% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 1,009 | 1,009 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 1,953 | 1,953 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 3,254 | 3,263 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 4,068 | 4,068 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 651 | 642 | ||||
10,935 | ||||||
MONEY MARKET FUNDS – 0.05% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 50,926 | 50,926 | ||||
50,926 | ||||||
REPURCHASE AGREEMENTS3 – 0.09% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $4,882 (collateralized by non-U.S. Government debt securities, value $5,378, 0.00% to 9.40%, 11/15/15 to 6/12/47)6 | $ | 4,881 | 4,881 | |||
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $16,274 (collateralized by U.S. Government obligations, value $16,630, 3.69% to 10.00%, 5/1/09 to 1/1/36) | $ | 16,272 | $ | 16,272 | ||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $8,137 (collateralized by non-U.S. Government debt securities, value $8,556, 1.01%, 9/19/35)6 | 8,136 | 8,136 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $16,274 (collateralized by U.S. Government obligations, value $16,624, 4.50% to 7.50%, 9/1/09 to 11/1/35) | 16,272 | 16,272 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $16,274 (collateralized by non-U.S. Government debt securities, value $17,113, 0.00% to 10.00%, 8/15/07 to 2/1/16)6 | 16,272 | 16,272 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $3,905 (collateralized by U.S. Government obligations, value $3,990, 3.99% to 5.51%, 7/1/32 to 2/1/36) | 3,905 | 3,905 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $3,254 (collateralized by non-U.S. Government debt securities, value $3,357, 0.00% to 7.88%, 5/15/08 to 1/15/16)6 | 3,254 | 3,254 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $16,274 (collateralized by non-U.S. Government debt securities, value $17,086, 0.00% to 7.16%, 3/1/06 to 3/25/35)6 | 16,272 | 16,272 | ||||
85,264 |
32 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
TIME DEPOSITS3 – 0.03% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | $ | 6,509 | $ | 6,509 | ||
Societe Generale | ||||||
4.57%, 03/01/06 | 11,390 | 11,390 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 5,856 | 5,856 | ||||
23,755 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 0.23% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 9,145 | 9,147 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 7,648 | 7,649 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 1,302 | 1,302 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 976 | 977 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 10,576 | 10,580 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 2,115 | 2,115 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 3,254 | 3,254 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 4,198 | 4,198 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 3,254 | 3,254 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 8,754 | 8,754 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 814 | 814 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 3,254 | 3,254 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 814 | 814 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 3,254 | 3,254 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 6,509 | 6,509 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 651 | 651 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 1,464 | 1,466 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 814 | 814 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 3,254 | 3,254 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 3,254 | 3,254 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 8,949 | 8,949 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 1,139 | 1,139 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 2,929 | 2,929 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 3,410 | 3,409 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 2,603 | 2,603 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 1,790 | 1,790 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 9,730 | 9,734 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 6,509 | 6,509 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/077 | 2,441 | 2,441 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 8,787 | 8,787 | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/077 | 5,695 | 5,695 | ||||
Northern Rock PLC | ||||||
4.61%, 02/02/077 | 3,905 | 3,905 |
SCHEDULESOF INVESTMENTS | 33 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
Permanent Financing PLC | |||||||
4.53%, 03/10/06 - 06/12/067 | $ | 8,852 | $ | 8,852 | |||
Pfizer Investment Capital PLC | |||||||
4.53%, 02/15/077 | 8,136 | 8,136 | |||||
Principal Life Income Funding Trusts | |||||||
4.70%, 05/10/06 | 2,441 | 2,441 | |||||
Sedna Finance Inc. | |||||||
4.54%, 09/20/067 | 976 | 976 | |||||
Sigma Finance Inc. | |||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 3,612 | 3,612 | |||||
Skandinaviska Enskilda Bank NY | |||||||
4.56%, 03/19/077 | 3,254 | 3,254 | |||||
Societe Generale | |||||||
4.54%, 03/02/077 | 2,278 | 2,278 | |||||
Strips III LLC | |||||||
4.62%, 07/24/067,8 | 840 | 840 | |||||
SunTrust Bank | |||||||
4.62%, 04/28/06 | 4,881 | 4,881 | |||||
Tango Finance Corp. | |||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 7,257 | 7,257 | |||||
Toyota Motor Credit Corp. | |||||||
4.57%, 04/10/06 | 1,464 | 1,464 | |||||
UniCredito Italiano SpA | |||||||
4.43%, 06/14/06 | 4,231 | 4,230 | |||||
Union Hamilton Special Funding LLC | |||||||
4.52%, 03/28/067 | 3,254 | 3,254 | |||||
US Bank N.A. | |||||||
4.54%, 09/29/06 | 1,464 | 1,464 | |||||
Variable Funding Capital Corp. | |||||||
4.52%, 03/09/06 - 03/13/06 | 4,881 | 4,881 | |||||
Wachovia Asset Securitization Inc. | |||||||
4.57%, 03/26/067 | 6,211 | 6,211 | |||||
Wells Fargo & Co. | |||||||
4.56%, 03/15/077 | 1,627 | 1,627 | |||||
WhistleJacket Capital Ltd. | |||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 1,627 | 1,627 | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 3,417 | 3,417 | |||||
Winston Funding Ltd. | |||||||
4.68%, 04/23/067 | 2,324 | 2,323 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 4,881 | 4,881 | |||||
211,110 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 398,306 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.28% | 94,217,405 | ||||||
Other Assets, Less Liabilities – (0.28)% | (260,882 | ) | |||||
NET ASSETS – 100.00% | $ | 93,956,523 | |||||
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 this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
34 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 96.77% | |||||
AIRLINES – 0.53% | |||||
Deutsche Lufthansa AG | 203,808 | $ | 3,367,843 | ||
3,367,843 | |||||
APPAREL – 1.91% | |||||
Adidas-Salomon AG | 43,008 | 8,410,337 | |||
Puma AG | 10,272 | 3,696,082 | |||
12,106,419 | |||||
AUTO MANUFACTURERS – 8.33% | |||||
DaimlerChrysler AG | 764,160 | 42,364,744 | |||
Volkswagen AG | 150,240 | 10,507,393 | |||
52,872,137 | |||||
AUTO PARTS & EQUIPMENT – 1.79% | |||||
Continental AG | 111,072 | 11,370,061 | |||
11,370,061 | |||||
BANKS – 12.53% | |||||
Commerzbank AG | 495,840 | 18,054,186 | |||
DEPFA Bank PLC | 303,840 | 5,046,188 | |||
Deutsche Bank AG | 419,136 | 46,198,642 | |||
Deutsche Postbank AG | 41,088 | 2,906,409 | |||
Hypo Real Estate Holding AG | 111,264 | 7,322,529 | |||
79,527,954 | |||||
BIOTECHNOLOGY – 0.29% | |||||
QIAGEN NV1,2 | 121,824 | 1,841,702 | |||
1,841,702 | |||||
CHEMICALS – 8.48% | |||||
BASF AG | 414,624 | 31,271,661 | |||
Bayer AG | 559,392 | 22,535,738 | |||
53,807,399 | |||||
COMPUTERS – 0.26% | |||||
Wincor Nixdorf AG | 13,152 | 1,677,811 | |||
1,677,811 | |||||
COSMETICS & PERSONAL CARE – 0.36% | |||||
Beiersdorf AG | 16,992 | 2,309,696 | |||
2,309,696 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.80% | |||||
Deutsche Boerse AG | 81,024 | 10,199,119 | |||
MLP AG | 53,376 | 1,202,749 | |||
11,401,868 | |||||
ELECTRIC – 13.82% | |||||
E.ON AG | 528,480 | 58,528,157 | |||
RWE AG | 340,896 | 29,206,294 | |||
87,734,451 | |||||
ELECTRONICS – 0.11% | |||||
EPCOS AG1,2 | 51,456 | 699,372 | |||
699,372 | |||||
ENGINEERING & CONSTRUCTION – 1.38% | |||||
Hochtief AG | 49,536 | 2,661,212 | |||
Linde AG | 77,184 | 6,114,903 | |||
8,776,115 | |||||
FOOD – 1.34% | |||||
METRO AG | 132,576 | 7,051,223 | |||
Suedzucker AG | 55,693 | 1,474,744 | |||
8,525,967 | |||||
HEALTH CARE - PRODUCTS – 0.89% | |||||
Fresenius Medical Care AG | 52,653 | 5,662,354 | |||
5,662,354 | |||||
INSURANCE – 11.64% | |||||
Allianz AG | 320,736 | 51,776,621 | |||
Muenchener Rueckversicherungs - Gesellschaft AG | 163,200 | 22,132,929 | |||
73,909,550 | |||||
IRON & STEEL – 1.24% | |||||
ThyssenKrupp AG2 | 311,808 | 7,899,753 | |||
7,899,753 | |||||
LEISURE TIME – 0.60% | |||||
TUI AG2 | 192,096 | 3,792,678 | |||
3,792,678 | |||||
MACHINERY - DIVERSIFIED – 1.49% | |||||
Heidelberger Druckmaschinen AG | 45,600 | 1,960,460 | |||
MAN AG | 118,848 | 7,492,912 | |||
9,453,372 | |||||
MANUFACTURING – 9.81% | |||||
Siemens AG | 678,528 | 62,291,076 | |||
62,291,076 | |||||
MEDIA – 0.16% | |||||
Premiere AG1 | 59,904 | 1,002,744 | |||
1,002,744 |
SCHEDULESOF INVESTMENTS | 35 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2006
Security | Shares | Value | ||||
PHARMACEUTICALS – 3.31% | ||||||
ALTANA AG | 63,168 | $ | 3,394,314 | |||
Celesio AG | 34,080 | 3,164,817 | ||||
Merck KGaA | 41,088 | 4,114,922 | ||||
Schering AG | 143,328 | 10,307,651 | ||||
20,981,704 | ||||||
REAL ESTATE – 0.23% | ||||||
IVG Immobilien AG | 55,392 | 1,435,073 | ||||
1,435,073 | ||||||
RETAIL – 0.36% | ||||||
Douglas Holding AG | 25,920 | 1,191,006 | ||||
KarstadtQuelle AG1,2 | 44,064 | 1,079,075 | ||||
2,270,081 | ||||||
SEMICONDUCTORS – 0.81% | ||||||
Infineon Technologies AG1 | 554,496 | 5,116,897 | ||||
5,116,897 | ||||||
SOFTWARE – 5.92% | ||||||
SAP AG | 184,128 | 37,550,026 | ||||
37,550,026 | ||||||
TELECOMMUNICATIONS – 4.90% | ||||||
Deutsche Telekom AG | 1,968,192 | 31,068,678 | ||||
31,068,678 | ||||||
TRANSPORTATION – 2.48% | ||||||
Deutsche Post AG | 603,168 | 15,756,074 | ||||
15,756,074 | ||||||
TOTAL COMMON STOCKS | 614,208,855 | |||||
PREFERRED STOCKS – 3.05% | ||||||
AUTO MANUFACTURERS – 1.61% | ||||||
Porsche AG 2 | 6,624 | 5,579,242 | ||||
Volkswagen AG | 89,952 | 4,637,286 | ||||
10,216,528 | ||||||
ELECTRIC – 0.26% | ||||||
RWE AG | 20,640 | 1,624,131 | ||||
1,624,131 | ||||||
HOUSEHOLD PRODUCTS & WARES – 0.92% | ||||||
Henkel KGaA | 53,280 | 5,871,438 | ||||
5,871,438 | ||||||
Security | Shares or Principal | Value | ||||
MEDIA – 0.26% | ||||||
ProSiebenSat.1 Media AG | 69,984 | $ | 1,647,909 | |||
1,647,909 | ||||||
TOTAL PREFERRED STOCKS | 19,360,006 | |||||
SHORT-TERM INVESTMENTS – 0.41% | ||||||
CERTIFICATES OF DEPOSIT3 – 0.00% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 10,626 | 10,626 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 17,001 | 17,001 | ||||
27,627 | ||||||
COMMERCIAL PAPER3 – 0.01% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 10,626 | 10,537 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 6,375 | 6,337 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 10,626 | 10,538 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 6,099 | 6,065 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 10,626 | 10,528 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 22,314 | 22,226 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 12,751 | 12,698 | ||||
78,929 | ||||||
MEDIUM-TERM NOTES3 – 0.01% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 6,588 | 6,588 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 12,751 | 12,751 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 21,252 | 21,310 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 26,565 | 26,565 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 4,250 | 4,195 | ||||
71,409 |
36 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
MONEY MARKET FUNDS – 0.05% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 312,078 | $ | 312,078 | |||
312,078 | ||||||
REPURCHASE AGREEMENTS 3 – 0.09% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $31,881 (collateralized by non-U.S. Government debt securities, value $35,123, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 31,877 | 31,877 | |||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $106,271 (collateralized by U.S. Government obligations, value $108,597, 3.69% to 10.00%, 5/1/09 to 1/1/36). | 106,258 | 106,258 | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $53,136 (collateralized by non-U.S. Government debt securities, value $55,875, 1.01%, 9/19/35).6 | 53,129 | 53,129 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $106,271 (collateralized by U.S. Government obligations, value $108,557, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 106,258 | 106,258 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $106,272 (collateralized by non-U.S. Government debt securities, value $111,750, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 106,258 | 106,258 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $25,505 (collateralized by U.S. Government obligations, value $26,054, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 25,502 | 25,502 | ||||
Security | Principal | Value | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $21,255 (collateralized by non-U.S. Government debt securities, value $21,925, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | $ | 21,252 | $ | 21,252 | ||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $106,272 (collateralized by non-U.S. Government debt securities, value $111,580, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 106,258 | 106,258 | ||||
556,792 | ||||||
TIME DEPOSITS3 – 0.03% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 42,503 | 42,503 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 74,381 | 74,381 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 38,242 | 38,242 | ||||
155,126 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 0.22% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 59,717 | 59,727 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 49,941 | 49,942 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 8,501 | 8,501 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 6,375 | 6,381 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 69,068 | 69,085 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 13,814 | 13,814 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 21,252 | 21,252 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 27,415 | 27,414 |
SCHEDULESOF INVESTMENTS | 37 |
Schedule of Investments (Unaudited) (Continued)
iSHARES ® MSCI GERMANY INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | $ | 21,252 | $ | 21,252 | ||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 57,167 | 57,166 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 5,313 | 5,313 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 21,252 | 21,252 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 5,313 | 5,313 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 21,252 | 21,252 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 42,503 | 42,503 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 4,250 | 4,250 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 9,563 | 9,570 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 5,313 | 5,313 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 21,252 | 21,252 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 21,252 | 21,252 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 58,442 | 58,442 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 7,438 | 7,439 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 19,126 | 19,126 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 22,266 | 22,265 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 17,001 | 17,001 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 11,688 | 11,688 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 63,542 | 63,568 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 42,503 | 42,503 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/077 | 15,939 | 15,939 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 57,379 | 57,382 | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/077 | 37,190 | 37,190 | ||||
Northern Rock PLC | ||||||
4.61%, 02/02/077 | 25,502 | 25,503 | ||||
Permanent Financing PLC | ||||||
4.53%, 03/10/06 - 06/12/067 | 57,804 | 57,805 | ||||
Pfizer Investment Capital PLC | ||||||
4.53%, 02/15/077 | 53,129 | 53,129 | ||||
Principal Life Income Funding Trusts | ||||||
4.70%, 05/10/06 | 15,939 | 15,939 | ||||
Sedna Finance Inc. | ||||||
4.54%, 09/20/067 | 6,375 | 6,375 | ||||
Sigma Finance Inc. | ||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 23,589 | 23,589 | ||||
Skandinaviska Enskilda Bank NY | ||||||
4.56%, 03/19/077 | 21,252 | 21,252 | ||||
Societe Generale | ||||||
4.54%, 03/02/077 | 14,876 | 14,876 | ||||
Strips III LLC | ||||||
4.62%, 07/24/067,8 | 5,483 | 5,483 | ||||
SunTrust Bank | ||||||
4.62%, 04/28/06 | 31,877 | 31,877 | ||||
Tango Finance Corp. | ||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 47,391 | 47,389 | ||||
Toyota Motor Credit Corp. | ||||||
4.57%, 04/10/06 | 9,563 | 9,563 | ||||
UniCredito Italiano SpA | ||||||
4.43%, 06/14/06 | 27,627 | 27,624 | ||||
Union Hamilton Special Funding LLC | ||||||
4.52%, 03/28/067 | 21,252 | 21,252 | ||||
US Bank N.A. | ||||||
4.54%, 09/29/06 | 9,563 | 9,562 |
38 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES ® MSCI GERMANY INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
Variable Funding Capital Corp. | |||||||
4.52%, 03/09/06 - 03/13/06 | $ | 31,877 | $ | 31,878 | |||
Wachovia Asset Securitization Inc. | |||||||
4.57%, 03/26/067 | 40,559 | 40,558 | |||||
Wells Fargo & Co. | |||||||
4.56%, 03/15/077 | 10,626 | 10,627 | |||||
WhistleJacket Capital Ltd. | |||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 10,626 | 10,625 | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 22,314 | 22,314 | |||||
Winston Funding Ltd. | |||||||
4.68%, 04/23/067 | 15,174 | 15,174 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 31,877 | 31,877 | |||||
1,378,618 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 2,580,579 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.23% | 636,149,440 | ||||||
Other Assets, Less Liabilities – (0.23)% | (1,433,074 | ) | |||||
NET ASSETS – 100.00% | $ | 634,716,366 | |||||
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 this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 39 |
Schedule of Investments (Unaudited)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 95.69% | |||||
AEROSPACE & DEFENSE – 2.03% | |||||
Finmeccanica SpA | 79,443 | $ | 1,739,931 | ||
1,739,931 | |||||
APPAREL – 0.34% | |||||
Benetton Group SpA | 22,701 | 289,598 | |||
289,598 | |||||
AUTO MANUFACTURERS – 1.38% | |||||
Fiat SpA1,2 | 109,032 | 1,180,340 | |||
1,180,340 | |||||
AUTO PARTS & EQUIPMENT – 0.74% | |||||
Pirelli SpA | 668,556 | 632,089 | |||
632,089 | |||||
BANKS – 37.45% | |||||
Banca Antonveneta SpA | 35,721 | 1,125,610 | |||
Banca Intesa SpA | 623,511 | 3,687,170 | |||
Banca Monte dei Paschi di Siena SpA2 | 274,050 | 1,418,035 | |||
Banca Nazionale del Lavoro SpA1 | 306,432 | 1,064,977 | |||
Banca Popolare di Milano Scrl | 109,809 | 1,389,059 | |||
Banca Popolare di Verona e Novara Scrl | 109,872 | 2,636,927 | |||
Banche Popolari Unite Scrl | 118,587 | 2,980,403 | |||
Capitalia SpA | 378,588 | 2,861,696 | |||
Sanpaolo IMI SpA | 240,828 | 4,252,354 | |||
UniCredito Italiano SpA | 1,463,154 | 10,649,839 | |||
32,066,070 | |||||
BUILDING MATERIALS – 0.80% | |||||
Italcementi SpA | 33,642 | 689,084 | |||
689,084 | |||||
COMMERCIAL SERVICES – 2.63% | |||||
Autostrade SpA | 88,263 | 2,254,060 | |||
2,254,060 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.51% | |||||
Banca Fideuram SpA | 75,852 | 460,312 | |||
Mediobanca SpA | 121,653 | 2,545,466 | |||
3,005,778 | |||||
ELECTRIC – 8.69% | |||||
Enel SpA | 760,347 | 6,318,470 | |||
Terna SpA | 428,463 | 1,127,668 | |||
7,446,138 | |||||
ENTERTAINMENT – 0.52% | |||||
Lottomatica SpA1 | 11,130 | 444,536 | |||
444,536 | |||||
GAS – 0.61% | |||||
Snam Rete Gas SpA | 118,482 | 520,544 | |||
520,544 | |||||
HEALTH CARE – PRODUCTS – 1.47% | |||||
Luxottica Group SpA | 44,646 | 1,255,677 | |||
1,255,677 | |||||
INSURANCE – 5.42% | |||||
Assicurazioni Generali SpA | 115,080 | 4,128,472 | |||
Mediolanum SpA2 | 62,349 | 515,146 | |||
4,643,618 | |||||
MEDIA – 4.11% | |||||
Arnoldo Mondadori Editore SpA | 41,685 | 394,361 | |||
Gruppo Editoriale L’Espresso SpA | 31,857 | 163,605 | |||
Mediaset SpA | 199,437 | 2,349,254 | |||
Seat Pagine Gialle SpA1 | 903,487 | 443,799 | |||
Telecom Italia Media SpA1,2 | 325,045 | 165,090 | |||
3,516,109 | |||||
OIL & GAS – 17.70% | |||||
ENI SpA | 530,523 | 15,155,084 | |||
15,155,084 | |||||
RETAIL – 1.16% | |||||
Autogrill SpA | 39,753 | 583,439 | |||
Bulgari SpA | 34,482 | 409,467 | |||
992,906 | |||||
TELECOMMUNICATIONS – 7.13% | |||||
Telecom Italia SpA | 2,229,318 | 5,986,930 | |||
Tiscali SpA1 | 40,677 | 119,909 | |||
6,106,839 | |||||
TOTAL COMMON STOCKS | 81,938,401 | ||||
PREFERRED STOCKS – 4.03% | |||||
BANKS – 0.61% | |||||
Banca Intesa SpA RNC | 94,395 | 519,665 | |||
519,665 |
40 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
TELECOMMUNICATIONS – 3.42% | ||||||
Telecom Italia SpA RNC | 1,272,705 | $ | 2,927,031 | |||
2,927,031 | ||||||
TOTAL PREFERRED STOCKS | 3,446,696 | |||||
SHORT-TERM INVESTMENTS – 1.22% | ||||||
CERTIFICATES OF DEPOSIT3– 0.01% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 4,816 | 4,816 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 7,706 | 7,706 | ||||
12,522 | ||||||
COMMERCIAL PAPER3 – 0.04% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 4,816 | 4,778 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 2,890 | 2,872 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 4,816 | 4,777 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 2,765 | 2,749 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 4,816 | 4,772 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 10,114 | 10,074 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 5,780 | 5,756 | ||||
35,778 | ||||||
MEDIUM-TERM NOTES3 – 0.04% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 2,986 | 2,986 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 5,780 | 5,779 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 9,633 | 9,659 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 12,041 | 12,041 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 1,927 | 1,901 | ||||
32,366 | ||||||
MONEY MARKET FUNDS – 0.02% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 20,183 | 20,183 | ||||
20,183 | ||||||
REPURCHASE AGREEMENTS3 – 0.30% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $14,451 (collateralized by non-U.S. Government debt securities, value $15,920, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 14,449 | 14,449 | |||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $48,169 (collateralized by U.S. Government obligations, value $49,223, 3.69% to 10.00%, 5/1/09 to 1/1/36). | 48,163 | 48,163 | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $24,085 (collateralized by non-U.S. Government debt securities, value $25,326, 1.01%, 9/19/35).6 | 24,082 | 24,082 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $48,169 (collateralized by U.S. Government obligations, value $49,205, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 48,163 | 48,163 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $48,169 (collateralized by non-U.S. Government debt securities, value $50,652, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 48,163 | 48,163 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $11,560 (collateralized by U.S. Government obligations, value $11,809, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 11,559 | 11,559 |
SCHEDULESOF INVESTMENTS | 41 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $9,634 (collateralized by non-U.S. Government debt securities, value $9,938, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | $ | 9,633 | $ | 9,633 | ||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $48,169 (collateralized by non-U.S. Government debt securities, value $50,575, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 48,163 | 48,163 | ||||
252,375 | ||||||
TIME DEPOSITS3 – 0.08% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 19,265 | 19,265 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 33,714 | 33,714 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 17,334 | 17,334 | ||||
70,313 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 0.73% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 27,068 | 27,072 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 22,637 | 22,635 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 3,853 | 3,853 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 2,890 | 2,892 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 31,306 | 31,314 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 6,261 | 6,261 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 9,633 | 9,633 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 12,426 | 12,426 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 9,633 | 9,633 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 25,912 | 25,911 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 2,408 | 2,408 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 9,633 | 9,633 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 2,408 | 2,408 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 9,633 | 9,633 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 19,265 | 19,265 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 1,927 | 1,926 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 4,335 | 4,338 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 2,408 | 2,408 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 9,633 | 9,633 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 9,633 | 9,633 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 26,490 | 26,490 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 3,371 | 3,372 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 8,669 | 8,669 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 10,092 | 10,092 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 7,706 | 7,706 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 5,298 | 5,298 |
42 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
Metropolitan Life Global Funding I | |||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | $ | 28,802 | $ | 28,813 | |||
Mound Financing PLC | |||||||
4.53%, 11/08/067 | 19,265 | 19,265 | |||||
Natexis Banques Populaires | |||||||
4.55%, 03/15/077 | 7,224 | 7,224 | |||||
Nationwide Building Society | |||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 26,008 | 26,009 | |||||
Nordea Bank AB | |||||||
4.55%, 02/09/077 | 16,857 | 16,857 | |||||
Northern Rock PLC | |||||||
4.61%, 02/02/077 | 11,559 | 11,559 | |||||
Permanent Financing PLC | |||||||
4.53%, 03/10/06 - 06/12/067 | 26,201 | 26,200 | |||||
Pfizer Investment Capital PLC | |||||||
4.53%, 02/15/077 | 24,082 | 24,082 | |||||
Principal Life Income Funding Trusts | |||||||
4.70%, 05/10/06 | 7,224 | 7,224 | |||||
Sedna Finance Inc. | |||||||
4.54%, 09/20/067 | 2,890 | 2,890 | |||||
Sigma Finance Inc. | |||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 10,692 | 10,692 | |||||
Skandinaviska Enskilda Bank NY | |||||||
4.56%, 03/19/077 | 9,633 | 9,633 | |||||
Societe Generale | |||||||
4.54%, 03/02/077 | 6,743 | 6,743 | |||||
Strips III LLC | |||||||
4.62%, 07/24/067,8 | 2,485 | 2,485 | |||||
SunTrust Bank | |||||||
4.62%, 04/28/06 | 14,449 | 14,449 | |||||
Tango Finance Corp. | |||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 21,481 | 21,480 | |||||
Toyota Motor Credit Corp. | |||||||
4.57%, 04/10/06 | 4,335 | 4,335 | |||||
UniCredito Italiano SpA | |||||||
4.43%, 06/14/06 | 12,522 | 12,521 | |||||
Union Hamilton Special Funding LLC | |||||||
4.52%, 03/28/067 | 9,633 | 9,633 | |||||
US Bank N.A. | |||||||
4.54%, 09/29/06 | 4,335 | 4,334 | |||||
Variable Funding Capital Corp. | |||||||
4.52%, 03/09/06 - 03/13/06 | 14,449 | 14,449 | |||||
Wachovia Asset Securitization Inc. | |||||||
4.57%, 03/26/067 | 18,384 | 18,384 | |||||
Wells Fargo & Co. | |||||||
4.56%, 03/15/077 | 4,816 | 4,817 | |||||
WhistleJacket Capital Ltd. | |||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 4,816 | 4,816 | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 10,114 | 10,114 | |||||
Winston Funding Ltd. | |||||||
4.68%, 04/23/067 | 6,878 | 6,878 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 14,449 | 14,449 | |||||
624,877 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 1,048,414 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.94% | 86,433,511 | ||||||
Other Assets, Less Liabilities – (0.94)% | (808,144 | ) | |||||
NET ASSETS – 100.00% | $ | 85,625,367 | |||||
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 this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 43 |
Schedule of Investments (Unaudited)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2006
Security | Shares | Value | ||||
COMMON STOCKS – 99.98% | ||||||
BANKS – 12.76% | ||||||
ABN AMRO Holding NV | 370,500 | $ | 10,800,265 | |||
10,800,265 | ||||||
BEVERAGES – 3.44% | ||||||
Heineken NV | 77,376 | 2,915,148 | ||||
2,915,148 | ||||||
CHEMICALS – 6.34% | ||||||
Akzo Nobel NV | 69,654 | 3,537,716 | ||||
Koninklijke DSM NV | 43,836 | 1,823,995 | ||||
5,361,711 | ||||||
COMMERCIAL SERVICES – 1.85% | ||||||
Randstad Holdings NV | 13,806 | 773,300 | ||||
Vedior NV | 41,886 | 791,527 | ||||
1,564,827 | ||||||
COMPUTERS – 0.49% | ||||||
Getronics NV | 30,264 | 411,338 | ||||
411,338 | ||||||
DISTRIBUTION & WHOLESALE – 1.30% | ||||||
Buhrmann NV | 32,994 | 554,260 | ||||
Hagemeyer NV1,2 | 135,798 | 547,239 | ||||
1,101,499 | ||||||
ELECTRONICS – 10.25% | ||||||
Koninklijke Philips Electronics NV | 266,292 | 8,673,735 | ||||
8,673,735 | ||||||
FOOD – 14.68% | ||||||
Koninklijke Ahold NV1 | 379,080 | 3,091,394 | ||||
Koninklijke Numico NV1 | 40,482 | 1,753,455 | ||||
Unilever NV CVA | 109,122 | 7,578,366 | ||||
12,423,215 | ||||||
INSURANCE – 22.75% | ||||||
AEGON NV | 254,826 | 4,207,856 | ||||
ING Groep NV | 400,123 | 15,041,281 | ||||
19,249,137 | ||||||
MEDIA – 7.90% | ||||||
Reed Elsevier NV | 217,074 | 2,934,865 | ||||
VNU NV | 65,676 | 2,128,254 | ||||
Wolters Kluwer NV CVA | 73,866 | 1,622,189 | ||||
6,685,308 | ||||||
Security | Shares or Principal | Value | ||||
OFFICE & BUSINESS EQUIPMENT – 0.44% | ||||||
Oce NV | 21,450 | $ | 371,331 | |||
371,331 | ||||||
OIL & GAS SERVICES – 1.12% | ||||||
SBM Offshore NV | 9,594 | 945,959 | ||||
945,959 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 4.61% | ||||||
Corio NV | 18,096 | 1,189,859 | ||||
Rodamco Europe NV | 20,436 | 1,873,655 | ||||
Wereldhave NV | 7,878 | 839,694 | ||||
3,903,208 | ||||||
SEMICONDUCTORS – 2.92% | ||||||
ASML Holding NV1 | 118,872 | 2,467,435 | ||||
2,467,435 | ||||||
TELECOMMUNICATIONS – 4.82% | ||||||
Koninklijke KPN NV | 394,602 | 4,083,629 | ||||
4,083,629 | ||||||
TRANSPORTATION – 4.31% | ||||||
TNT NV | 111,930 | 3,644,480 | ||||
3,644,480 | ||||||
TOTAL COMMON STOCKS | 84,602,225 | |||||
SHORT-TERM INVESTMENTS – 0.01% | ||||||
CERTIFICATES OF DEPOSIT3– 0.00% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 19 | 19 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 31 | 31 | ||||
50 | ||||||
COMMERCIAL PAPER3 – 0.00% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 19 | 19 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 12 | 12 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 19 | 19 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 11 | 11 |
44 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
i SHARES ® MSCI NETHERLANDS INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | $ | 19 | $ | 19 | ||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 41 | 41 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 23 | 23 | ||||
144 | ||||||
MEDIUM-TERM NOTES3 – 0.00% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 12 | 12 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 23 | 23 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 39 | 39 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 49 | 49 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 8 | 8 | ||||
131 | ||||||
MONEY MARKET FUNDS – 0.01% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 3,716 | 3,716 | ||||
3,716 | ||||||
REPURCHASE AGREEMENTS3– 0.00% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $58 (collateralized by non-U.S. Government debt securities, value $64, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 58 | 58 | |||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $194 (collateralized by U.S. Government obligations, value $198, 3.69% to 10.00%, 5/1/09 to 1/1/36). | 194 | 194 | ||||
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $97 (collateralized by non-U.S. Government debt securities, value $102, 1.01%, 9/19/35).6 | $ | 97 | $ | 97 | ||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $194 (collateralized by U.S. Government obligations, value $198, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 194 | 194 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $194 (collateralized by non-U.S. Government debt securities, value $204, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 194 | 194 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $47 (collateralized by U.S. Government obligations, value $48, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 47 | 47 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $39 (collateralized by non-U.S. Government debt securities, value $40, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 39 | 39 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $194 (collateralized by non-U.S. Government debt securities, value $204, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 194 | 194 | ||||
1,017 | ||||||
TIME DEPOSITS3 – 0.00% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 78 | 78 |
SCHEDULESOF INVESTMENTS | 45 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | $ | 136 | $ | 136 | ||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 70 | 70 | ||||
284 | ||||||
VARIABLE & FLOATING RATE NOTES3– 0.00% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 109 | 109 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 91 | 91 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 16 | 16 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 12 | 12 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 126 | 126 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 25 | 25 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 39 | 39 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 50 | 50 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 39 | 39 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 104 | 103 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 10 | 10 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 39 | 39 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 10 | 10 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 39 | 39 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 78 | 78 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 8 | 8 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 17 | 17 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 10 | 10 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 39 | 39 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 39 | 39 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 107 | 107 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 14 | 14 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 35 | 35 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 41 | 41 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 31 | 31 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 21 | 21 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 116 | 116 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 78 | 78 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/077 | 29 | 29 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 105 | 105 | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/077 | 68 | 68 | ||||
Northern Rock PLC | ||||||
4.61%, 02/02/077 | 47 | 47 | ||||
Permanent Financing PLC | ||||||
4.53%, 03/10/06 - 06/12/067 | 106 | 106 |
46 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Pfizer Investment Capital PLC | ||||||
4.53%, 02/15/077 | $ | 97 | $ | 97 | ||
Principal Life Income Funding Trusts | ||||||
4.70%, 05/10/06 | 29 | 29 | ||||
Sedna Finance Inc. | ||||||
4.54%, 09/20/067 | 12 | 12 | ||||
Sigma Finance Inc. | ||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 43 | 43 | ||||
Skandinaviska Enskilda Bank NY | ||||||
4.56%, 03/19/077 | 39 | 39 | ||||
Societe Generale | ||||||
4.54%, 03/02/077 | 27 | 27 | ||||
Strips III LLC | ||||||
4.62%, 07/24/067,8 | 10 | 10 | ||||
SunTrust Bank | ||||||
4.62%, 04/28/06 | 58 | 58 | ||||
Tango Finance Corp. | ||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 87 | 86 | ||||
Toyota Motor Credit Corp. | ||||||
4.57%, 04/10/06 | 17 | 17 | ||||
UniCredito Italiano SpA | ||||||
4.43%, 06/14/06 | 50 | 50 | ||||
Union Hamilton Special Funding LLC | ||||||
4.52%, 03/28/067 | 39 | 39 | ||||
US Bank N.A. | ||||||
4.54%, 09/29/06 | 17 | 17 | ||||
Variable Funding Capital Corp. | ||||||
4.52%, 03/09/06 - 03/13/06 | 58 | 58 | ||||
Wachovia Asset Securitization Inc. | ||||||
4.57%, 03/26/067 | 74 | 74 | ||||
Wells Fargo & Co. | ||||||
4.56%, 03/15/077 | 19 | 19 | ||||
WhistleJacket Capital Ltd. | ||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 19 | 20 | ||||
White Pine Finance LLC | ||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 41 | 41 | ||||
Winston Funding Ltd. | ||||||
4.68%, 04/23/067 | 28 | 28 | ||||
World Savings Bank | ||||||
4.52%, 03/09/06 | 58 | 58 | ||||
2,519 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 7,861 | |||||
TOTAL INVESTMENTS IN SECURITIES – 99.99% | 84,610,086 | |||||
Other Assets, Less Liabilities – 0.01% | 8,995 | |||||
NET ASSETS – 100.00% | $ | 84,619,081 | ||||
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 this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 47 |
Schedule of Investments (Unaudited)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.87% | |||||
ADVERTISING – 0.56% | |||||
Telefonica Publicidad e Informacion SA | 46,197 | $ | 486,893 | ||
486,893 | |||||
AGRICULTURE – 3.16% | |||||
Altadis SA | 65,221 | 2,737,143 | |||
2,737,143 | |||||
AIRLINES – 0.32% | |||||
Iberia Lineas Aereas de Espana SA | 98,455 | 280,545 | |||
280,545 | |||||
BANKS – 38.37% | |||||
Banco Bilbao Vizcaya Argentaria SA | 602,098 | 12,260,901 | |||
Banco Popular Espanol SA | 286,752 | 3,846,151 | |||
Banco Santander Central Hispano SA | 1,119,487 | 16,350,178 | |||
Bankinter SA | 12,064 | 762,315 | |||
33,219,545 | |||||
BIOTECHNOLOGY – 0.28% | |||||
Zeltia SA1 | 35,090 | 243,486 | |||
243,486 | |||||
BUILDING MATERIALS – 0.11% | |||||
Uralita SA | 18,270 | 92,575 | |||
92,575 | |||||
COMMERCIAL SERVICES – 2.67% | |||||
Abertis Infraestructuras SA1 | 68,569 | 1,777,275 | |||
Cintra Concesiones de Infraestructuras de Transporte SA2 | 40,020 | 531,532 | |||
2,308,807 | |||||
COMPUTERS – 0.75% | |||||
Indra Sistemas SA | 32,799 | 653,047 | |||
653,047 | |||||
ELECTRIC – 11.58% | |||||
Endesa SA | 125,454 | 4,205,980 | |||
Iberdrola SA | 129,978 | 4,101,957 | |||
Union Fenosa SA | 45,791 | 1,719,721 | |||
10,027,658 | |||||
ENERGY - ALTERNATE SOURCES – 0.71% | |||||
Gamesa Corporacion Tecnologica SA | 35,293 | 611,394 | |||
611,394 | |||||
ENGINEERING & CONSTRUCTION – 6.49% | |||||
Acciona SA | 7,453 | 1,039,643 | |||
Actividades de Construcciones y Servicios SA | 67,222 | 2,508,552 | |||
Fomento de Construcciones y Contratas SA | 15,573 | 1,059,242 | |||
Grupo Ferrovial SA | 13,485 | 1,010,470 | |||
5,617,907 | |||||
FOOD – 0.94% | |||||
Ebro Puleva SA | 39,440 | 718,501 | |||
Viscofan SA | 7,250 | 98,107 | |||
816,608 | |||||
FOREST PRODUCTS & PAPER – 0.34% | |||||
Grupo Empresarial ENCE SA | 8,555 | 295,791 | |||
295,791 | |||||
GAS – 2.35% | |||||
Gas Natural SDG SA | 66,874 | 2,037,115 | |||
2,037,115 | |||||
INSURANCE – 0.94% | |||||
Corporacion Mapfre SA | 41,992 | 809,550 | |||
809,550 | |||||
IRON & STEEL – 0.93% | |||||
Acerinox SA1 | 52,664 | 808,090 | |||
808,090 | |||||
LODGING – 0.34% | |||||
NH Hoteles SA | 18,038 | 291,404 | |||
291,404 | |||||
MEDIA – 1.38% | |||||
Antena 3 de Television SA1 | 20,271 | 538,224 | |||
Promotora de Informaciones SA | 19,778 | 366,438 | |||
Sogecable SA1,2 | 7,156 | 287,776 | |||
1,192,438 | |||||
OIL & GAS – 4.89% | |||||
Repsol YPF SA | 151,641 | 4,237,811 | |||
4,237,811 | |||||
PHARMACEUTICALS – 0.65% | |||||
FAES FARMA SA1 | 25,143 | 559,366 | |||
559,366 |
48 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
REAL ESTATE – 3.00% | ||||||
Inmobiliaria Colonial SA | 10,556 | $ | 678,353 | |||
Metrovacesa SA | 14,297 | 1,065,350 | ||||
Sacyr Vallehermoso SA | 30,334 | 853,511 | ||||
2,597,214 | ||||||
RETAIL – 2.22% | ||||||
Inditex SA | 53,563 | 1,924,116 | ||||
1,924,116 | ||||||
TELECOMMUNICATIONS – 15.86% | ||||||
Telefonica SA | 890,387 | 13,736,637 | ||||
13,736,637 | ||||||
WATER – 1.03% | ||||||
Sociedad General de Aguas de Barcelona SA2 | 276 | 7,338 | ||||
Sociedad General de Aguas de Barcelona SA Class B | 31,958 | 883,965 | ||||
891,303 | ||||||
TOTAL COMMON STOCKS | 86,476,443 | |||||
SHORT-TERM INVESTMENTS – 2.79% | ||||||
CERTIFICATES OF DEPOSIT3– 0.03% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 11,326 | 11,326 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 18,121 | 18,121 | ||||
29,447 | ||||||
COMMERCIAL PAPER3 – 0.10% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 11,326 | 11,229 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 6,796 | 6,755 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 11,326 | 11,232 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 6,501 | 6,464 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 11,326 | 11,222 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 23,784 | 23,691 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 13,591 | 13,534 | ||||
84,127 | ||||||
MEDIUM-TERM NOTES3 – 0.09% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 7,022 | 7,022 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 13,591 | 13,591 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 22,652 | 22,713 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 28,315 | 28,315 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 4,530 | 4,471 | ||||
76,112 | ||||||
MONEY MARKET FUNDS – 0.00% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 368 | 368 | ||||
368 | ||||||
REPURCHASE AGREEMENTS3– 0.68% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $33,982 (collateralized by non-U.S. Government debt securities, value $37,436, 0.00% to 9.40%, 11/15/15 to 6/12/47)6 | $ | 33,978 | 33,978 | |||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $113,273 (collateralized by U.S. Government obligations, value $115,752, 3.69% to 10.00%, 5/1/09 to 1/1/36) | 113,259 | 113,259 | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $56,636 (collateralized by non-U.S. Government debt securities, value $59,556, 1.01%, 9/19/35)6 | 56,629 | 56,629 |
SCHEDULESOF INVESTMENTS | 49 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $113,273 (collateralized by U.S. Government obligations, value $115,709, 4.50% to 7.50%, 9/1/09 to 11/1/35). | $ | 113,259 | $ | 113,259 | ||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $113,274 (collateralized by non-U.S. Government debt securities, value $119,112, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 113,259 | 113,259 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $27,185 (collateralized by U.S. Government obligations, value $27,771, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 27,182 | 27,182 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $22,655 (collateralized by non-U.S. Government debt securities, value $23,370, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 22,652 | 22,652 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $113,274 (collateralized by non-U.S. Government debt securities, value $118,931, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 113,259 | 113,259 | ||||
593,477 | ||||||
TIME DEPOSITS3 – 0.19% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 45,303 | 45,303 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 79,281 | 79,281 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 40,761 | 40,761 | ||||
165,345 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 1.70% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 63,651 | 63,661 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 53,232 | 53,232 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 9,061 | 9,061 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 6,796 | 6,801 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 73,618 | 73,637 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 14,724 | 14,724 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 22,652 | 22,652 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 29,221 | 29,220 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 22,652 | 22,652 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 60,933 | 60,932 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 5,663 | 5,663 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 22,652 | 22,652 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 5,663 | 5,663 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 22,652 | 22,652 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 45,303 | 45,303 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 4,530 | 4,530 |
50 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | $ | 10,193 | $ | 10,201 | ||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 5,663 | 5,663 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 22,652 | 22,652 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 22,652 | 22,652 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 62,292 | 62,292 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 7,928 | 7,929 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 20,387 | 20,386 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 23,733 | 23,733 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 18,121 | 18,121 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 12,458 | 12,458 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 67,729 | 67,757 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 45,303 | 45,303 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/077 | 16,989 | 16,989 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 61,160 | 61,162 | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/077 | 39,641 | 39,641 | ||||
Northern Rock PLC | ||||||
4.61%, 02/02/077 | 27,182 | 27,183 | ||||
Permanent Financing PLC | ||||||
4.53%, 03/10/06 - 06/12/067 | 61,613 | 61,613 | ||||
Pfizer Investment Capital PLC | ||||||
4.53%, 02/15/077 | 56,629 | 56,629 | ||||
Principal Life Income Funding Trusts | ||||||
4.70%, 05/10/06 | 16,989 | 16,989 | ||||
Sedna Finance Inc. | ||||||
4.54%, 09/20/067 | 6,796 | 6,796 | ||||
Sigma Finance Inc. | ||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 25,143 | 25,143 | ||||
Skandinaviska Enskilda Bank NY | ||||||
4.56%, 03/19/077 | 22,652 | 22,652 | ||||
Societe Generale | ||||||
4.54%, 03/02/077 | 15,856 | 15,856 | ||||
Strips III LLC | ||||||
4.62%, 07/24/067,8 | 5,844 | 5,844 | ||||
SunTrust Bank | ||||||
4.62%, 04/28/06 | 33,978 | 33,978 | ||||
Tango Finance Corp. | ||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 50,513 | 50,511 | ||||
Toyota Motor Credit Corp. | ||||||
4.57%, 04/10/06 | 10,193 | 10,193 | ||||
UniCredito Italiano SpA | ||||||
4.43%, 06/14/06 | 29,447 | 29,444 | ||||
Union Hamilton Special Funding LLC | ||||||
4.52%, 03/28/067 | 22,652 | 22,652 | ||||
US Bank N.A. | ||||||
4.54%, 09/29/06 | 10,193 | 10,192 | ||||
Variable Funding Capital Corp. | ||||||
4.52%, 03/09/06 - 03/13/06 | 33,978 | 33,978 | ||||
Wachovia Asset Securitization Inc. | ||||||
4.57%, 03/26/067 | 43,231 | 43,231 | ||||
Wells Fargo & Co. | ||||||
4.56%, 03/15/077 | 11,326 | 11,327 | ||||
WhistleJacket Capital Ltd. | ||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 11,326 | 11,325 | ||||
White Pine Finance LLC | ||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 23,784 | 23,784 | ||||
Winston Funding Ltd. | ||||||
4.68%, 04/23/067 | 16,173 | 16,173 |
SCHEDULESOF INVESTMENTS | 51 |
Schedule of Investments (Unaudited) (Continued)
i SHARES ® MSCI SPAIN INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
World Savings Bank | $ | 33,978 | $ | 33,978 | |||
1,469,445 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 2,418,321 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 102.66% | 88,894,764 | ||||||
Other Assets, Less Liabilities – (2.66)% | (2,305,091 | ) | |||||
NET ASSETS – 100.00% | $ | 86,589,673 | |||||
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 (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
52 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited)
iSHARES ® MSCI SWEDEN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.96% | |||||
AGRICULTURE – 1.74% | |||||
Swedish Match AB | 134,618 | $ | 1,802,104 | ||
1,802,104 | |||||
AIRLINES – 0.40% | |||||
SAS AB1 | 31,146 | 411,045 | |||
411,045 | |||||
AUTO MANUFACTURERS – 7.02% | |||||
Scania AB Class B | 39,498 | 1,651,102 | |||
Volvo AB Class A | 39,440 | 1,671,091 | |||
Volvo AB Class B | 90,190 | 3,935,294 | |||
7,257,487 | |||||
BANKS – 19.39% | |||||
Nordea Bank AB | 896,158 | 10,129,276 | |||
Skandinaviska Enskilda Banken AB Class A | 195,460 | 4,319,831 | |||
Svenska Handelsbanken AB Class A | 215,064 | 5,595,073 | |||
20,044,180 | |||||
COMMERCIAL SERVICES – 2.18% | |||||
Securitas AB Class B | 122,786 | 2,256,226 | |||
2,256,226 | |||||
COMPUTERS – 0.37% | |||||
WM-Data AB Class B | 131,544 | 387,077 | |||
387,077 | |||||
COSMETICS & PERSONAL CARE – 0.39% | |||||
Oriflame Cosmetics SA SDR | 12,528 | 407,408 | |||
407,408 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.83% | |||||
D Carnegie AB | 18,328 | 310,163 | |||
OMHEX AB1 | 32,074 | 546,837 | |||
857,000 | |||||
ENGINEERING & CONSTRUCTION – 2.43% | |||||
Skanska AB Class B | 156,194 | 2,515,042 | |||
2,515,042 | |||||
FOOD – 0.31% Axfood AB | 12,238 | 316,064 | |||
316,064 | |||||
FOREST PRODUCTS & PAPER – 4.41% | |||||
Billerud AB | 21,924 | 312,874 | |||
Holmen AB Class B | 22,098 | 856,766 | |||
Svenska Cellulosa AB Class B | 80,678 | 3,382,704 | |||
4,552,344 | |||||
HAND & MACHINE TOOLS – 4.35% Sandvik AB | 83,578 | 4,496,477 | |||
4,496,477 | |||||
HEALTH CARE - PRODUCTS – 2.67% | |||||
Elekta AB Class B | 36,250 | 535,630 | |||
Gambro AB Class A | 72,848 | 742,901 | |||
Gambro AB Class B | 39,440 | 405,943 | |||
Getinge AB Class B | 74,588 | 1,078,562 | |||
2,763,036 | |||||
HEALTH CARE - SERVICES – 0.56% | |||||
Capio AB1 | 33,698 | 583,036 | |||
583,036 | |||||
HOME FURNISHINGS – 3.16% | |||||
Electrolux AB Series B | 117,972 | 3,262,825 | |||
3,262,825 | |||||
IRON & STEEL – 1.33% | |||||
Svenskt Stal AB Class A | 21,112 | 949,183 | |||
Svenskt Stal AB Class B | 9,976 | 421,428 | |||
1,370,611 | |||||
MACHINERY – 4.92% | |||||
Atlas Copco AB Class A | 132,356 | 3,259,485 | |||
Atlas Copco AB Class B | 80,446 | 1,828,722 | |||
5,088,207 | |||||
MANUFACTURING – 1.63% | |||||
Alfa Laval AB | 39,672 | 1,002,040 | |||
Trelleborg AB Class B2 | 32,654 | 680,442 | |||
1,682,482 | |||||
MEDIA – 1.72% | |||||
Eniro AB | 71,978 | 797,660 | |||
Modern Times Group AB Class B1 | 21,228 | 983,889 | |||
1,781,549 | |||||
METAL FABRICATE & HARDWARE – 4.56% | |||||
Assa Abloy AB Class B | 122,380 | 2,078,756 | |||
Hoganas AB Class B2 | 11,542 | 244,156 |
SCHEDULESOF INVESTMENTS | 53 |
Schedule of Investments (Unaudited) (Continued)
i SHARES ® MSCI SWEDEN INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
SKF AB | 164,198 | $ | 2,384,715 | |||
4,707,627 | ||||||
OIL & GAS – 0.75% | ||||||
Lundin Petroleum AB1 | 69,658 | 769,750 | ||||
769,750 | ||||||
REAL ESTATE – 2.09% | ||||||
Castellum AB | 16,240 | 679,893 | ||||
Fabege AB | 32,306 | 640,551 | ||||
Kungsleden AB | 18,908 | 661,449 | ||||
Wihlborgs Fastigheter AB1 | 6,322 | 174,452 | ||||
2,156,345 | ||||||
RETAIL – 6.93% | ||||||
Hennes & Mauritz AB Class B | 196,562 | 7,161,701 | ||||
7,161,701 | ||||||
SOFTWARE – 0.24% | ||||||
Telelogic AB1 | 99,470 | 242,449 | ||||
242,449 | ||||||
TELECOMMUNICATIONS – 25.58% | ||||||
Tele2 AB Class B2 | 130,790 | 1,412,250 | ||||
Telefonaktiebolaget LM EricssonClass B | 6,130,774 | 20,904,985 | ||||
TeliaSonera AB | 772,966 | 4,119,492 | ||||
26,436,727 | ||||||
TOTAL COMMON STOCKS | 103,308,799 | |||||
SHORT-TERM INVESTMENTS – 0.17% | ||||||
CERTIFICATES OF DEPOSIT3– 0.00% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 782 | 782 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 1,252 | 1,252 | ||||
2,034 | ||||||
COMMERCIAL PAPER3 – 0.01% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 782 | 777 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 469 | 467 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 782 | 776 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 449 | 447 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 782 | 775 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 1,643 | 1,637 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 939 | 935 | ||||
5,814 | ||||||
MEDIUM-TERM NOTES3 – 0.00% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 485 | 485 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 939 | 939 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 1,565 | 1,569 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 1,956 | 1,956 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 313 | 309 | ||||
5,258 | ||||||
MONEY MARKET FUNDS – 0.01% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 10,113 | 10,113 | ||||
10,113 | ||||||
REPURCHASE AGREEMENTS 3 – 0.04% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value | $ | 2,347 | 2,347 | |||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $ 7,826 (collateralized by U.S. Government obligations, value $7,997, 3.69% to 10.00%, 5/1/09 to 1/1/36). | 7,825 | 7,825 |
54 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $3,913 (collateralized by non-U.S. Government debt securities, value $4,115, 1.01%, 9/19/35).6 | $ | 3,912 | $ | 3,912 | ||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $7,826 (collateralized by U.S. Government obligations, value $7,994, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 7,825 | 7,825 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $7,826 (collateralized by non-U.S. Government debt securities, value $8,229, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 7,825 | 7,825 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $1,878 (collateralized by U.S. Government obligations, value $1,919, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 1,878 | 1,878 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $1,565 (collateralized by non-U.S. Government debt securities, value $1,615, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 1,565 | 1,565 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $7,826 (collateralized by non-U.S. Government debt securities, value $8,217, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 7,825 | 7,825 | ||||
41,002 | ||||||
TIME DEPOSITS3 – 0.01% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 3,130 | 3,130 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 5,477 | 5,477 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 2,816 | 2,816 | ||||
11,423 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 0.10% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 4,398 | 4,398 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 3,678 | 3,678 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 626 | 626 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 469 | 470 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 5,086 | 5,088 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 1,017 | 1,017 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 1,565 | 1,565 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 2,019 | 2,018 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 1,565 | 1,565 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 4,210 | 4,210 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 391 | 391 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 1,565 | 1,565 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 391 | 391 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 1,565 | 1,565 |
SCHEDULESOF INVESTMENTS | 55 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | $ | 3,130 | $ | 3,130 | ||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 313 | 313 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 704 | 705 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 391 | 391 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 1,565 | 1,565 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 1,565 | 1,565 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 4,304 | 4,304 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 548 | 548 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 1,408 | 1,408 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 1,640 | 1,639 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 1,252 | 1,252 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 861 | 861 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 4,679 | 4,681 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 3,130 | 3,130 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/077 | 1,174 | 1,174 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 4,225 | 4,226 | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/077 | 2,739 | 2,739 | ||||
Northern Rock PLC | ||||||
4.61%, 02/02/077 | 1,878 | 1,878 | ||||
Permanent Financing PLC | ||||||
4.53%, 03/10/06 - 06/12/067 | 4,257 | 4,257 | ||||
Pfizer Investment Capital PLC | ||||||
4.53%, 02/15/077 | 3,912 | 3,912 | ||||
Principal Life Income Funding Trusts | ||||||
4.70%, 05/10/06 | 1,174 | 1,174 | ||||
Sedna Finance Inc. | ||||||
4.54%, 09/20/067 | 469 | 469 | ||||
Sigma Finance Inc. | ||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 1,737 | 1,737 | ||||
Skandinaviska Enskilda Bank NY | ||||||
4.56%, 03/19/077 | 1,565 | 1,565 | ||||
Societe Generale | ||||||
4.54%, 03/02/077 | 1,095 | 1,095 | ||||
Strips III LLC | ||||||
4.62%, 07/24/067,8 | 404 | 404 | ||||
SunTrust Bank | ||||||
4.62%, 04/28/06 | 2,347 | 2,347 | ||||
Tango Finance Corp. | ||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 3,490 | 3,490 | ||||
Toyota Motor Credit Corp. | ||||||
4.57%, 04/10/06 | 704 | 704 | ||||
UniCredito Italiano SpA | ||||||
4.43%, 06/14/06 | 2,034 | 2,034 | ||||
Union Hamilton Special Funding LLC | ||||||
4.52%, 03/28/067 | 1,565 | 1,565 | ||||
US Bank N.A. | ||||||
4.54%, 09/29/06 | 704 | 704 | ||||
Variable Funding Capital Corp. | ||||||
4.52%, 03/09/06 - 03/13/06 | 2,347 | 2,347 | ||||
Wachovia Asset Securitization Inc. | ||||||
4.57%, 03/26/067 | 2,987 | 2,987 | ||||
Wells Fargo & Co. | ||||||
4.56%, 03/15/077 | 782 | 783 | ||||
WhistleJacket Capital Ltd. | ||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 782 | 783 | ||||
White Pine Finance LLC | ||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 1,643 | 1,643 | ||||
Winston Funding Ltd. | ||||||
4.68%, 04/23/067 | 1,117 | 1,117 |
56 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | $ | 2,347 | $ | 2,347 | |||
101,520 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 177,164 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.13% | 103,485,963 | ||||||
Other Assets, Less Liabilities – (0.13)% | (132,615 | ) | |||||
NET ASSETS – 100.00% | $ | 103,353,348 | |||||
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 this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 57 |
Schedule of Investments (Unaudited)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.84% | |||||
BANKS – 19.29% | |||||
Banque Cantonale Vaudoise | 2,646 | $ | 847,269 | ||
Credit Suisse Group | 138,978 | 7,703,046 | |||
Julius Baer Holding AG | 22,239 | 1,912,522 | |||
UBS AG Registered | 178,353 | 18,941,465 | |||
Vontobel Holding AG Registered | 34,902 | 1,381,019 | |||
30,785,321 | |||||
BUILDING MATERIALS – 3.73% | |||||
Geberit AG Registered | 512 | 464,904 | |||
Holcim Ltd. Registered | 69,615 | 5,487,890 | |||
5,952,794 | |||||
CHEMICALS – 7.41% | |||||
Ciba Specialty Chemicals AG | 25,872 | 1,601,652 | |||
Clariant AG Registered1 | 37,926 | 579,740 | |||
Givaudan SA Registered | 5,229 | 3,745,394 | |||
Lonza Group AG Registered | 9,830 | 638,146 | |||
Syngenta AG1 | 37,254 | 5,260,123 | |||
11,825,055 | |||||
COMMERCIAL SERVICES – 1.95% | |||||
Adecco SA Registered | 26,918 | 1,477,602 | |||
SGS SA | 1,764 | 1,629,984 | |||
3,107,586 | |||||
COMPUTERS – 0.47% | |||||
Logitech International SA1 | 18,400 | 743,491 | |||
743,491 | |||||
ENGINEERING & CONSTRUCTION – 3.20% | |||||
ABB Ltd.1 | 426,510 | 5,105,178 | |||
5,105,178 | |||||
FOOD – 11.86% | |||||
Nestle SA Registered | 64,323 | 18,917,087 | |||
18,917,087 | |||||
HAND & MACHINE TOOLS – 1.10% | |||||
Schindler Holding AG Participation | 2,835 | 1,344,391 | |||
Schindler Holding AG Registered | 882 | 414,893 | |||
1,759,284 | |||||
HEALTH CARE—PRODUCTS – 5.09% | |||||
Nobel Biocare Holding AG | 12,285 | 2,744,257 | |||
Phonak Holding AG Registered | 20,727 | 1,001,862 | |||
Straumann Holding AG Registered | 3,358 | 791,721 | |||
Synthes Inc. | 32,760 | 3,579,086 | |||
8,116,926 | |||||
INSURANCE – 8.28% | |||||
Swiss Reinsurance Co. | 78,144 | 5,567,458 | |||
Zurich Financial Services AG1 | 32,319 | 7,638,387 | |||
13,205,845 | |||||
LEISURE TIME – 0.02% | |||||
Kuoni Reisen Holding AG Registered1 | 64 | 27,373 | |||
27,373 | |||||
MACHINERY – 0.22% | |||||
Rieter Holding AG | 899 | 348,867 | |||
348,867 | |||||
MANUFACTURING – 0.44% | |||||
Sulzer AG Registered | 1,134 | 709,371 | |||
709,371 | |||||
PHARMACEUTICALS – 27.03% | |||||
Novartis AG | 384,111 | 20,674,903 | |||
Roche Holding AG Genusschein | 134,379 | 19,865,123 | |||
Serono SA | 3,682 | 2,596,615 | |||
43,136,641 | |||||
REAL ESTATE – 0.76% | |||||
PSP Swiss Property AG1 | 25,578 | 1,209,039 | |||
1,209,039 | |||||
RETAIL – 6.07% | |||||
Compagnie Financiere Richemont AG Class A | 138,474 | 6,033,461 | |||
Swatch Group (The) AG Class B | 13,680 | 2,221,507 | |||
Swatch Group (The) AG Registered | 43,298 | 1,426,046 | |||
9,681,014 | |||||
SEMICONDUCTORS – 0.39% | |||||
Micronas Semiconductor Holding AG1 | 3,315 | 106,781 | |||
Unaxis Holding AG Class R1 | 2,457 | 515,602 | |||
622,383 |
58 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2006
Security | Shares | Value | |||
TELECOMMUNICATIONS – 1.92% | |||||
Swisscom AG Registered | 10,218 | $ | 3,071,282 | ||
3,071,282 | |||||
TRANSPORTATION – 0.61% | |||||
Kuehne & Nagel International AG Registered | 3,213 | 970,036 | |||
970,036 | |||||
TOTAL COMMON STOCKS | 159,294,573 | ||||
SHORT-TERM INVESTMENTS – 0.09% | |||||
MONEY MARKET FUNDS – 0.09% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | |||||
4.51%2,3 | 140,279 | 140,279 | |||
140,279 | |||||
TOTAL SHORT-TERM INVESTMENTS | 140,279 | ||||
TOTAL INVESTMENTS IN SECURITIES — 99.93% | 159,434,852 | ||||
Other Assets, Less Liabilities – 0.07% | 118,282 | ||||
NET ASSETS – 100.00% | $ | 159,553,134 | |||
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
3 | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 59 |
Schedule of Investments (Unaudited)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.48% | |||||
ADVERTISING – 0.62% | |||||
Aegis Group PLC | 229,416 | $ | 531,334 | ||
WPP Group PLC | 283,926 | 3,294,118 | |||
3,825,452 | |||||
AEROSPACE & DEFENSE – 1.62% | |||||
BAE Systems PLC | 763,140 | 5,613,085 | |||
Cobham PLC | 261,648 | 778,959 | |||
Meggitt PLC | 101,594 | 664,073 | |||
Rolls-Royce Group PLC1 | 376,040 | 2,889,344 | |||
9,945,461 | |||||
AGRICULTURE – 2.67% | |||||
British American Tobacco PLC | 374,776 | 8,919,477 | |||
Gallaher Group PLC | 155,630 | 2,409,316 | |||
Imperial Tobacco Group PLC | 168,270 | 5,053,811 | |||
16,382,604 | |||||
AIRLINES – 0.13% | |||||
British Airways PLC1 | 136,986 | 788,661 | |||
788,661 | |||||
APPAREL – 0.14% | |||||
Burberry Group PLC | 110,284 | 885,523 | |||
885,523 | |||||
AUTO PARTS & EQUIPMENT – 0.17% | |||||
GKN PLC | 173,168 | 1,030,328 | |||
TI Automotive Ltd. Class A1,2 | 52,283 | — | |||
1,030,328 | |||||
BANKS – 19.36% | |||||
Barclays PLC3 | 1,534,338 | 17,962,658 | |||
HBOS PLC | 916,558 | 17,046,398 | |||
HSBC Holdings PLC | 2,684,262 | 45,785,927 | |||
Lloyds TSB Group PLC | 1,330,202 | 12,899,696 | |||
Royal Bank of Scotland Group PLC | 756,188 | 25,280,395 | |||
118,975,074 | |||||
BEVERAGES – 2.68% | |||||
Diageo PLC | 691,250 | 10,604,432 | |||
SABMiller PLC | 213,300 | 4,235,962 | |||
Scottish & Newcastle PLC | 180,594 | 1,620,069 | |||
16,460,463 | |||||
BUILDING MATERIALS – 0.58% | |||||
Hanson PLC | 173,326 | 2,114,136 | |||
Pilkington PLC | 259,278 | 735,578 | |||
Travis Perkins PLC | 26,386 | 685,734 | |||
3,535,448 | |||||
CHEMICALS – 0.99% | |||||
BOC Group PLC | 118,816 | 3,141,955 | |||
Imperial Chemical Industries PLC | 283,136 | 1,662,310 | |||
Johnson Matthey PLC | 51,982 | 1,301,779 | |||
6,106,044 | |||||
COMMERCIAL SERVICES – 1.57% | |||||
Aggreko PLC | 69,362 | 361,070 | |||
Brambles Industries PLC | 179,014 | 1,292,397 | |||
Bunzl PLC | 81,844 | 915,874 | |||
Capita Group PLC | 156,262 | 1,299,856 | |||
Davis Service Group PLC | 42,660 | 368,312 | |||
De La Rue PLC | 40,658 | 395,885 | |||
Group 4 Securicor PLC | 279,186 | 870,286 | |||
Hays PLC | 378,410 | 980,782 | |||
Intertek Group PLC | 39,500 | 518,808 | |||
Rank Group PLC | 152,312 | 694,848 | |||
Rentokil Initial PLC | 448,246 | 1,234,398 | |||
Serco Group PLC | 115,340 | 701,407 | |||
9,633,923 | |||||
COMPUTERS – 0.07% | |||||
LogicaCMG PLC | 128,928 | 453,828 | |||
453,828 | |||||
DISTRIBUTION & WHOLESALE – 0.69% | |||||
Inchcape PLC | 18,486 | 780,528 | |||
Wolseley PLC | 140,620 | 3,487,052 | |||
4,267,580 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.40% | |||||
AMVESCAP PLC | 172,694 | 1,629,344 | |||
Cattles PLC | 79,948 | 485,831 | |||
Close Brothers Group PLC | 30,336 | 549,588 | |||
ICAP PLC | 119,764 | 932,280 | |||
London Stock Exchange PLC | 62,726 | 939,208 | |||
Man Group PLC | 69,836 | 2,826,360 | |||
Provident Financial PLC | 59,882 | 631,307 | |||
Schroders PLC | 30,020 | 604,847 | |||
8,598,765 |
60 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2006
Security | Shares | Value | |||
ELECTRIC – 2.79% | |||||
International Power PLC1 | 349,970 | $ | 1,751,319 | ||
National Grid PLC | 643,850 | 6,765,254 | |||
Scottish & Southern Energy PLC | 204,136 | 4,107,596 | |||
Scottish Power PLC | 443,032 | 4,531,021 | |||
17,155,190 | |||||
ELECTRONICS – 0.15% | |||||
Electrocomponents PLC | 111,548 | 563,580 | |||
Premier Farnell PLC | 94,484 | 338,790 | |||
902,370 | |||||
ENGINEERING & CONSTRUCTION – 0.78% | |||||
AMEC PLC | 77,262 | 537,161 | |||
BAA PLC | 255,644 | 3,581,572 | |||
Balfour Beatty PLC | 104,122 | 683,333 | |||
4,802,066 | |||||
ENTERTAINMENT – 0.69% | |||||
EMI Group PLC | 197,500 | 849,115 | |||
Ladbrokes PLC | 379,832 | 2,454,517 | |||
William Hill PLC | 92,904 | 946,090 | |||
4,249,722 | |||||
FOOD – 4.20% | |||||
Cadbury Schweppes PLC | 494,224 | 5,019,957 | |||
J Sainsbury PLC | 323,268 | 1,813,009 | |||
Tate & Lyle PLC | 115,498 | 1,209,550 | |||
Tesco PLC | 1,867,560 | 11,054,508 | |||
Unilever PLC | 651,592 | 6,703,965 | |||
25,800,989 | |||||
FOOD SERVICE – 0.32% | |||||
Compass Group PLC | 510,656 | 1,942,837 | |||
1,942,837 | |||||
GAS – 0.72% | |||||
Centrica PLC | 874,214 | 4,447,460 | |||
4,447,460 | |||||
HEALTH CARE–PRODUCTS – 0.36% | |||||
Smith & Nephew PLC | 223,096 | 1,984,740 | |||
SSL International PLC | 45,030 | 257,671 | |||
2,242,411 | |||||
HOLDING COMPANIES–DIVERSIFIED – 0.17% | |||||
Tomkins PLC | 182,332 | 1,063,299 | |||
1,063,299 | |||||
HOME BUILDERS – 0.97% | |||||
Barratt Developments PLC | 57,196 | 1,034,699 | |||
Bellway PLC | 25,754 | 528,592 | |||
Berkeley Group Holdings (The) PLC1 | 24,490 | 477,774 | |||
Bovis Homes Group PLC | 26,702 | 373,627 | |||
Persimmon PLC | 65,886 | 1,610,745 | |||
Taylor Woodrow PLC | 142,042 | 1,034,804 | |||
Wimpey (George) PLC | 95,274 | 922,673 | |||
5,982,914 | |||||
HOME FURNISHINGS – 0.04% | |||||
MFI Furniture Group PLC | 159,296 | 255,952 | |||
255,952 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.84% | |||||
Reckitt Benckiser PLC | 144,886 | 5,150,752 | |||
5,150,752 | |||||
INSURANCE – 4.15% | |||||
Aviva PLC | 568,326 | 7,852,766 | |||
Friends Provident PLC | 456,936 | 1,654,432 | |||
Legal & General Group PLC | 1,545,556 | 3,525,418 | |||
Old Mutual PLC | 1,292,440 | 4,249,506 | |||
Prudential PLC | 574,488 | 6,066,615 | |||
Resolution PLC | 49,138 | 573,973 | |||
Royal & Sun Alliance Insurance Group PLC | 692,830 | 1,577,314 | |||
25,500,024 | |||||
IRON & STEEL – 0.22% | |||||
Corus Group PLC | 1,054,492 | 1,329,609 | |||
1,329,609 | |||||
LEISURE TIME – 0.43% | |||||
Carnival PLC | 40,448 | 2,215,705 | |||
First Choice Holidays PLC | 113,286 | 447,870 | |||
2,663,575 | |||||
LODGING – 0.26% | |||||
InterContinental Hotels Group PLC | 103,806 | 1,594,300 | |||
1,594,300 | |||||
MANUFACTURING – 0.77% | |||||
BBA Group PLC | 114,076 | 534,899 | |||
Cookson Group PLC1 | 47,874 | 396,560 | |||
FKI PLC | 151,364 | 322,068 | |||
IMI PLC | 80,106 | 733,694 |
SCHEDULESOF INVESTMENTS | 61 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Invensys PLC1 | 1,412,362 | $ | 519,414 | ||
Smiths Group PLC | 133,984 | 2,203,265 | |||
4,709,900 | |||||
MEDIA – 2.71% | |||||
British Sky Broadcasting Group PLC | 286,612 | 2,534,743 | |||
Daily Mail & General Trust PLC Class A | 70,468 | 802,146 | |||
EMAP PLC | 60,830 | 1,012,554 | |||
ITV PLC | 975,966 | 1,854,439 | |||
Pearson PLC | 190,864 | 2,369,837 | |||
Reed Elsevier PLC | 303,044 | 2,733,135 | |||
Reuters Group PLC | 339,384 | 2,258,516 | |||
Trinity Mirror PLC | 67,782 | 685,511 | |||
United Business Media PLC | 64,306 | 756,216 | |||
Yell Group PLC | 167,954 | 1,633,154 | |||
16,640,251 | |||||
MINING – 5.60% | |||||
Anglo American PLC | 337,330 | 12,565,235 | |||
BHP Billiton PLC | 586,970 | 9,868,140 | |||
Rio Tinto PLC | 254,538 | 11,946,359 | |||
34,379,734 | |||||
OIL & GAS – 18.42% | |||||
BG Group PLC | 841,982 | 9,842,427 | |||
BP PLC | 4,933,076 | 54,426,011 | |||
Royal Dutch Shell PLC Class A | 942,154 | 28,329,593 | |||
Royal Dutch Shell PLC Class B | 654,910 | 20,587,055 | |||
113,185,086 | |||||
PACKAGING & CONTAINERS – 0.19% | |||||
Rexam PLC | 131,140 | 1,164,371 | |||
1,164,371 | |||||
PHARMACEUTICALS – 8.70% | |||||
Alliance Unichem PLC | 59,577 | 913,968 | |||
AstraZeneca PLC | 378,252 | 17,454,604 | |||
GlaxoSmithKline PLC | 1,385,344 | 35,081,170 | |||
53,449,742 | |||||
REAL ESTATE – 1.70% | |||||
British Land Co. PLC | 123,398 | 2,614,819 | |||
Brixton PLC | 59,724 | 486,874 | |||
Great Portland Estates PLC | 36,656 | 297,217 | |||
Hammerson PLC | 66,518 | 1,327,982 | |||
Land Securities Group PLC | 111,390 | 3,591,271 | |||
Liberty International PLC | 56,564 | 1,098,550 | |||
Slough Estates PLC | 98,592 | 1,052,358 | |||
10,469,071 | |||||
RETAIL – 3.24% | |||||
Boots Group PLC | 114,420 | 1,421,682 | |||
DSG International PLC | 432,920 | 1,304,020 | |||
Enterprise Inns PLC | 82,950 | 1,302,311 | |||
GUS PLC | 207,928 | 3,823,406 | |||
HMV Group PLC | 95,590 | 310,112 | |||
Kesa Electricals PLC | 123,872 | 577,036 | |||
Kingfisher PLC | 556,792 | 2,225,625 | |||
Marks & Spencer Group PLC | 394,052 | 3,578,083 | |||
Mitchells & Butlers PLC | 121,186 | 840,949 | |||
Next PLC | 59,882 | 1,730,328 | |||
Punch Taverns PLC | 62,252 | 932,656 | |||
Signet Group PLC | 406,534 | 735,081 | |||
Whitbread PLC | 60,830 | 1,128,670 | |||
19,909,959 | |||||
SEMICONDUCTORS – 0.10% | |||||
ARM Holdings PLC | 262,912 | 633,084 | |||
633,084 | |||||
SOFTWARE – 0.36% | |||||
iSOFT Group PLC | 54,826 | 178,586 | |||
Misys PLC | 115,340 | 474,675 | |||
Sage Group PLC | 315,842 | 1,533,521 | |||
2,186,782 | |||||
TELECOMMUNICATIONS – 5.95% | |||||
BT Group PLC | 1,998,384 | 7,200,571 | |||
Cable & Wireless PLC | 551,894 | 1,031,743 | |||
Telent PLC1 | 50,560 | 349,303 | |||
Vodafone Group PLC | 14,647,864 | 27,960,758 | |||
36,542,375 | |||||
TRANSPORTATION – 0.72% | |||||
Arriva PLC | 47,400 | 500,961 | |||
Associated British Ports Holdings PLC | 72,522 | 784,886 | |||
FirstGroup PLC | 92,588 | 680,603 | |||
National Express Group PLC | 33,970 | 528,568 | |||
Peninsular & Oriental Steam Navigation Co. (The) | 172,172 | 1,555,070 | |||
Stagecoach Group PLC | 204,251 | 401,512 | |||
4,451,600 |
62 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2006
Security | Shares | Value | |||
VENTURE CAPITAL – 0.36% | |||||
3i Group PLC | 133,352 | $ | 2,192,872 | ||
2,192,872 | |||||
WATER – 0.88% | |||||
Kelda Group PLC | 89,428 | 1,247,405 | |||
Severn Trent PLC | 82,476 | 1,666,792 | |||
United Utilities PLC | 206,190 | 2,466,246 | |||
5,380,443 | |||||
TOTAL COMMON STOCKS | 611,267,894 | ||||
SHORT-TERM INVESTMENTS – 0.13% | |||||
MONEY MARKET FUNDS – 0.13% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | |||||
4.51%3,4 | 768,877 | 768,877 | |||
768,877 | |||||
TOTAL SHORT-TERM INVESTMENTS | 768,877 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.61% | 612,036,771 | ||||
Other Assets, Less Liabilities – 0.39% | 2,413,742 | ||||
NET ASSETS – 100.00% | $ | 614,450,513 | |||
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. |
4 | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 63 |
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2006
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 | $ | 234,196,046 | $ | 70,597,834 | $ | 939,532,269 | $ | 92,809,471 | $ | 563,028,528 | $ | 72,604,764 | ||||||||||||
Affiliated issuersa | $ | 18,751 | $ | 52,521 | $ | 927,162 | $ | 50,926 | $ | 312,078 | $ | 20,183 | ||||||||||||
Foreign currencies, at cost | $ | 410,149 | $ | 34,065 | $ | 716,095 | $ | 14,406 | $ | 319,694 | $ | 58,688 | ||||||||||||
Investments in securities, at value (including securities on loanb) (Note 1): | ||||||||||||||||||||||||
Unaffiliated issuers | $ | 303,119,456 | $ | 78,989,644 | $ | 1,104,524,255 | $ | 94,166,479 | $ | 635,837,362 | $ | 86,413,328 | ||||||||||||
Affiliated issuersa | 18,751 | 52,521 | 927,162 | 50,926 | 312,078 | 20,183 | ||||||||||||||||||
Foreign currencies, at value | 410,012 | 33,865 | 707,148 | 14,209 | 315,734 | 59,071 | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Investment securities sold | 25,916,755 | 2,567,907 | 8,824,129 | 988,339 | 15,212,410 | 2,669,675 | ||||||||||||||||||
Dividends and interest | 282,668 | 148,614 | 233,790 | 57,142 | 184,436 | 62,662 | ||||||||||||||||||
Capital shares sold | — | — | 480,755 | — | 54,349 | — | ||||||||||||||||||
Total Assets | 329,747,642 | 81,792,551 | 1,115,697,239 | 95,277,095 | 651,916,369 | 89,224,919 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Investment securities purchased | 25,913,000 | 2,499,794 | 7,253,188 | 923,174 | 14,671,295 | 2,532,947 | ||||||||||||||||||
Collateral for securities on loan (Note 5) | 771,503 | 61,427 | 6,913,829 | 347,380 | 2,268,501 | 1,028,231 | ||||||||||||||||||
Investment advisory fees (Note 2) | 135,267 | 35,549 | 408,875 | 50,018 | 260,207 | 38,374 | ||||||||||||||||||
Total Liabilities | 26,819,770 | 2,596,770 | 14,575,892 | 1,320,572 | 17,200,003 | 3,599,552 | ||||||||||||||||||
NET ASSETS | $ | 302,927,872 | $ | 79,195,781 | $ | 1,101,121,347 | $ | 93,956,523 | $ | 634,716,366 | $ | 85,625,367 | ||||||||||||
Net assets consist of: | ||||||||||||||||||||||||
Paid-in capital | $ | 235,673,872 | $ | 73,682,351 | $ | 959,185,820 | $ | 84,161,771 | $ | 593,023,405 | $ | 77,537,623 | ||||||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) | (1,036,526 | ) | (460,640 | ) | (1,100,222 | ) | (40,098 | ) | (409,418 | ) | 301,630 | |||||||||||||
Undistributed net realized gain (accumulated net realized loss) | (617,009 | ) | (2,410,732 | ) | (21,939,095 | ) | 8,480,474 | (30,694,947 | ) | (6,036,908 | ) | |||||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 68,907,535 | 8,384,802 | 164,974,844 | 1,354,376 | 72,797,326 | 13,823,022 | ||||||||||||||||||
NET ASSETS | $ | 302,927,872 | $ | 79,195,781 | $ | 1,101,121,347 | $ | 93,956,523 | $ | 634,716,366 | $ | 85,625,367 | ||||||||||||
Shares outstanding | 10,100,000 | 3,840,000 | 13,200,000 | 3,400,000 | 28,800,000 | 3,150,000 | ||||||||||||||||||
Net asset value per share | $ | 29.99 | $ | 20.62 | $ | 83.42 | $ | 27.63 | $ | 22.04 | $ | 27.18 | ||||||||||||
a | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market values of $720,703, $58,229, $6,514,145, $326,857, $2,116,782 and $959,828, respectively. See Note 5. |
See notes to the financial statements.
64 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2006
iShares MSCI | ||||||||||||||||||||
Netherlands Index Fund | Spain Index Fund | Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Investments, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ | 71,957,808 | $ | 65,609,837 | $ | 83,504,211 | $ | 131,911,587 | $ | 524,896,636 | ||||||||||
Affiliated issuersa | $ | 3,716 | $ | 368 | $ | 10,113 | $ | 140,279 | $ | 15,356,539 | ||||||||||
Foreign currencies, at cost | $ | 48,791 | $ | 75,228 | $ | 80,786 | $ | 14,640 | $ | 729,124 | ||||||||||
Investments in securities, at value (including securities on loanb) (Note 1): | ||||||||||||||||||||
Unaffiliated issuers | $ | 84,606,370 | $ | 88,894,396 | $ | 103,475,850 | $ | 159,294,573 | $ | 593,305,236 | ||||||||||
Affiliated issuersa | 3,716 | 368 | 10,113 | 140,279 | 18,731,535 | |||||||||||||||
Foreign currencies, at value | 48,820 | 74,747 | 80,147 | 14,517 | 732,628 | |||||||||||||||
Receivables: | ||||||||||||||||||||
Investment securities sold | 674,011 | 1,831,454 | — | 3,244,090 | 2,320,391 | |||||||||||||||
Dividends and interest | 119 | 2,878 | 1,013 | 119,391 | 2,041,489 | |||||||||||||||
Capital shares sold | — | — | — | 1,062,904 | — | |||||||||||||||
Total Assets | 85,333,036 | 90,803,843 | 103,567,123 | 163,875,754 | 617,131,279 | |||||||||||||||
LIABILITIES | ||||||||||||||||||||
Payables: | ||||||||||||||||||||
Investment securities purchased | 671,685 | 1,758,022 | — | 4,257,627 | 2,416,239 | |||||||||||||||
Collateral for securities on loan (Note 5) | 4,145 | 2,417,953 | 167,051 | — | — | |||||||||||||||
Investment advisory fees (Note 2) | 38,125 | 38,195 | 46,724 | 64,993 | 264,527 | |||||||||||||||
Total Liabilities | 713,955 | 4,214,170 | 213,775 | 4,322,620 | 2,680,766 | |||||||||||||||
NET ASSETS | $ | 84,619,081 | $ | 86,589,673 | $ | 103,353,348 | $ | 159,553,134 | $ | 614,450,513 | ||||||||||
Net assets consist of: | ||||||||||||||||||||
Paid-in capital | $ | 81,674,378 | $ | 66,859,802 | $ | 90,694,954 | $ | 139,832,099 | $ | 579,176,400 | ||||||||||
Undistributed net investment income (accumulated net investment loss) | (230,882 | ) | 217,469 | (187,485 | ) | (217,431 | ) | 2,166,072 | ||||||||||||
Accumulated net realized loss | (9,473,017 | ) | (3,772,076 | ) | (7,125,106 | ) | (7,432,529 | ) | (38,686,565 | ) | ||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 12,648,602 | 23,284,478 | 19,970,985 | 27,370,995 | 71,794,606 | |||||||||||||||
NET ASSETS | $ | 84,619,081 | $ | 86,589,673 | $ | 103,353,348 | $ | 159,553,134 | $ | 614,450,513 | ||||||||||
Shares outstanding | 3,900,000 | 2,175,000 | 4,350,000 | 7,875,000 | 31,600,000 | |||||||||||||||
Net asset value per share | $ | 21.70 | $ | 39.81 | $ | 23.76 | $ | 20.26 | $ | 19.44 | ||||||||||
a | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market values of $3,977, $2,302,104, $156,629, $– and $–, respectively. See Note 5. |
See notes to the financial statements.
FINANCIAL STATEMENTS | 65 |
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2006
iShares MSCI | ||||||||||||||||||||||||
Austria Index Fund | Belgium Index Fund | EMU Index Fund | France Index Fund | Germany Index Fund | Italy Index Fund | |||||||||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends from unaffiliated issuersa | $ | 60,298 | $ | 53,499 | $ | 2,591,383 | $ | 200,674 | $ | 1,092,718 | $ | 447,180 | ||||||||||||
Interest from affiliated issuersb | 1,212 | 654 | 4,909 | 1,002 | 4,537 | 554 | ||||||||||||||||||
Securities lending incomec | 13,871 | 9,393 | 104,784 | 19,762 | 46,460 | 18,575 | ||||||||||||||||||
Total investment income | 75,381 | 63,546 | 2,701,076 | 221,438 | 1,143,715 | 466,309 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Investment advisory fees (Note 2) | 648,904 | 158,164 | 1,811,964 | 257,076 | 1,347,962 | 160,271 | ||||||||||||||||||
Proxy fees | 9,121 | 4,737 | 23,188 | 3,804 | 7,967 | 3,368 | ||||||||||||||||||
Total expenses | 658,025 | 162,901 | 1,835,152 | 260,880 | 1,355,929 | 163,639 | ||||||||||||||||||
Net investment income (loss) | (582,644 | ) | (99,355 | ) | 865,924 | (39,442 | ) | (212,214 | ) | 302,670 | ||||||||||||||
NET REALIZED AND UNREALIZED | ||||||||||||||||||||||||
GAIN (LOSS) | ||||||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||||||
Investments in unaffiliated issuers | (466,599 | ) | 339,316 | (832,579 | ) | (650,078 | ) | (15,457,371 | ) | (51,673 | ) | |||||||||||||
In-kind redemptions | 5,075,264 | — | — | 16,411,564 | 23,034,873 | — | ||||||||||||||||||
Foreign currency transactions | 73,103 | (3,319 | ) | 9,419 | (759 | ) | (25,919 | ) | 1,719 | |||||||||||||||
Net realized gain (loss) | 4,681,768 | 335,997 | (823,160 | ) | 15,760,727 | 7,551,583 | (49,954 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||
Investments | 26,111,390 | 7,449,696 | 87,377,692 | (6,387,405 | ) | 64,320,460 | 5,441,728 | |||||||||||||||||
Translation of assets and liabilities in foreign currencies | (77,719 | ) | (4,927 | ) | (26,605 | ) | (3,694 | ) | (10,953 | ) | (1,861 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) | 26,033,671 | 7,444,769 | 87,351,087 | (6,391,099 | ) | 64,309,507 | 5,439,867 | |||||||||||||||||
Net realized and unrealized gain | 30,715,439 | 7,780,766 | 86,527,927 | 9,369,628 | 71,861,090 | 5,389,913 | ||||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 30,132,795 | $ | 7,681,411 | $ | 87,393,851 | $ | 9,330,186 | $ | 71,648,876 | $ | 5,692,583 | ||||||||||||
a | Net of foreign withholding tax of $10,628, $5,499, $226,173, $3,776, $180,185 and $24,373, 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 the financial statements.
66 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Operations (Unaudited) (Continued)
i SHARES ®, INC .
Six months ended February 28, 2006
iShares MSCI | ||||||||||||||||||||
Netherlands Index Fund | Spain Index Fund | Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | ||||||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||||||
Dividends from unaffiliated issuersa | $ | 122,607 | $ | 914,415 | $ | 5,883 | $ | 86,240 | $ | 6,584,238 | ||||||||||
Interest from affiliated issuersb | 157 | 198 | 182 | 1,140 | 3,042 | |||||||||||||||
Securities lending incomec | 4,686 | 12,655 | 6,472 | 2,837 | 2,520 | |||||||||||||||
Total investment income | 127,450 | 927,268 | 12,537 | 90,217 | 6,589,800 | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Investment advisory fees (Note 2) | 190,446 | 203,568 | 196,566 | 301,864 | 1,373,395 | |||||||||||||||
Proxy fees | 3,950 | 4,339 | 4,272 | 4,248 | 21,875 | |||||||||||||||
Total expenses | 194,396 | 207,907 | 200,838 | 306,112 | 1,395,270 | |||||||||||||||
Net investment income (loss) | (66,946 | ) | 719,361 | (188,301 | ) | (215,895 | ) | 5,194,530 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments in unaffiliated issuers | (743,349 | ) | 331,112 | 96,843 | (424,233 | ) | (4,318,838 | ) | ||||||||||||
Investments in affiliated issuersb | — | — | — | — | 54,171 | |||||||||||||||
In-kind redemptions | — | — | — | — | 2,331,020 | |||||||||||||||
Foreign currency transactions | 1,412 | (224 | ) | 331 | 5,075 | (49,031 | ) | |||||||||||||
Net realized gain (loss) | (741,937 | ) | 330,888 | 97,174 | (419,158 | ) | (1,982,678 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | 11,369,774 | 9,198,776 | 7,736,754 | 16,452,828 | 30,659,284 | |||||||||||||||
Translation of assets and liabilities in foreign currencies | (1,340 | ) | (140 | ) | 136 | (13,303 | ) | 3,653 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 11,368,434 | 9,198,636 | 7,736,890 | 16,439,525 | 30,662,937 | |||||||||||||||
Net realized and unrealized gain | 10,626,497 | 9,529,524 | 7,834,064 | 16,020,367 | 28,680,259 | |||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 10,559,551 | $ | 10,248,885 | $ | 7,645,763 | $ | 15,804,472 | $ | 33,874,789 | ||||||||||
a | Net of foreign withholding tax of $20,508, $108,504, $128, $5,764 and $69,036, 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 the financial statements.
FINANCIAL STATEMENTS | 67 |
Statements of Changes in Net Assets
iSHARES ®, INC .
February 28, 2006
iShares MSCI Austria Index Fund | iShares MSCI Belgium Index Fund | iShares MSCI EMU Index Fund | ||||||||||||||||||||||
Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (582,644 | ) | $ | 1,963,799 | $ | (99,355 | ) | $ | 2,019,162 | $ | 865,924 | $ | 11,759,160 | ||||||||||
Net realized gain (loss) | 4,681,768 | 22,454,551 | 335,997 | 6,943,446 | (823,160 | ) | 11,776,485 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 26,033,671 | 30,930,253 | 7,444,769 | (4,222 | ) | 87,351,087 | 76,359,243 | |||||||||||||||||
Net increase in net assets resulting from operations | 30,132,795 | 55,348,603 | 7,681,411 | 8,958,386 | 87,393,851 | 99,894,888 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (2,357,719 | ) | (642,119 | ) | (2,145,588 | ) | (821,720 | ) | (12,287,252 | ) | (7,926,598 | ) | ||||||||||||
Total distributions to shareholders | (2,357,719 | ) | (642,119 | ) | (2,145,588 | ) | (821,720 | ) | (12,287,252 | ) | (7,926,598 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | 88,366,659 | 143,898,493 | 26,700,399 | 45,733,499 | 478,730,571 | 174,100,562 | ||||||||||||||||||
Cost of shares redeemed | (10,166,037 | ) | (59,573,023 | ) | — | (31,723,211 | ) | — | (45,390,429 | ) | ||||||||||||||
Net increase in net assets from capital share transactions | 78,200,622 | 84,325,470 | 26,700,399 | 14,010,288 | 478,730,571 | 128,710,133 | ||||||||||||||||||
INCREASE IN NET ASSETS | 105,975,698 | 139,031,954 | 32,236,222 | 22,146,954 | 553,837,170 | 220,678,423 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 196,952,174 | 57,920,220 | 46,959,559 | 24,812,605 | 547,284,177 | 326,605,754 | ||||||||||||||||||
End of period | $ | 302,927,872 | $ | 196,952,174 | $ | 79,195,781 | $ | 46,959,559 | $ | 1,101,121,347 | $ | 547,284,177 | ||||||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period | $ | (1,036,526 | ) | $ | 1,903,837 | $ | (460,640 | ) | $ | 1,784,303 | $ | (1,100,222 | ) | $ | 10,321,106 | |||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | 3,100,000 | 6,600,000 | 1,360,000 | 2,560,000 | 5,900,000 | 2,450,000 | ||||||||||||||||||
Shares redeemed | (400,000 | ) | (2,600,000 | ) | — | (1,760,000 | ) | — | (650,000 | ) | ||||||||||||||
Net increase in shares outstanding | 2,700,000 | 4,000,000 | 1,360,000 | 800,000 | 5,900,000 | 1,800,000 | ||||||||||||||||||
See notes to the financial statements.
68 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets (Continued)
iSHARES ®, INC .
February 28, 2006
iShares MSCI France Index Fund | iShares MSCI Germany Index Fund | iShares MSCI Italy Index Fund | ||||||||||||||||||||||
Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (39,442 | ) | $ | 1,242,600 | $ | (212,214 | ) | $ | 2,593,698 | $ | 302,670 | $ | 1,168,264 | ||||||||||
Net realized gain (loss) | 15,760,727 | 5,071,907 | 7,551,583 | (4,797,168 | ) | (49,954 | ) | (764,798 | ) | |||||||||||||||
Net change in unrealized appreciation (depreciation) | (6,391,099 | ) | 9,136,196 | 64,309,507 | 40,534,750 | 5,439,867 | 7,988,683 | |||||||||||||||||
Net increase in net assets resulting from operations | 9,330,186 | 15,450,703 | 71,648,876 | 38,331,280 | 5,692,583 | 8,392,149 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (1,093,386 | ) | (838,342 | ) | (2,745,191 | ) | (1,573,473 | ) | (1,062,571 | ) | (869,122 | ) | ||||||||||||
Total distributions to shareholders | (1,093,386 | ) | (838,342 | ) | (2,745,191 | ) | (1,573,473 | ) | (1,062,571 | ) | (869,122 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | 52,895,509 | 23,987,143 | 340,117,867 | 179,271,889 | 38,469,313 | 7,723,603 | ||||||||||||||||||
Cost of shares redeemed | (48,501,578 | ) | (18,474,473 | ) | (89,098,617 | ) | — | — | — | |||||||||||||||
Net increase in net assets from capital share transactions | 4,393,931 | 5,512,670 | 251,019,250 | 179,271,889 | 38,469,313 | 7,723,603 | ||||||||||||||||||
INCREASE IN NET ASSETS | 12,630,731 | 20,125,031 | 319,922,935 | 216,029,696 | 43,099,325 | 15,246,630 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 81,325,792 | 61,200,761 | 314,793,431 | 98,763,735 | 42,526,042 | 27,279,412 | ||||||||||||||||||
End of period | $ | 93,956,523 | $ | 81,325,792 | $ | 634,716,366 | $ | 314,793,431 | $ | 85,625,367 | $ | 42,526,042 | ||||||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | (40,098 | ) | $ | 1,092,730 | $ | (409,418 | ) | $ | 2,547,987 | $ | 301,630 | $ | 1,061,531 | ||||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | 2,000,000 | 1,000,000 | 16,800,000 | 9,900,000 | 1,500,000 | 300,000 | ||||||||||||||||||
Shares redeemed | (1,800,000 | ) | (800,000 | ) | (4,500,000 | ) | — | — | — | |||||||||||||||
Net increase in shares outstanding | 200,000 | 200,000 | 12,300,000 | 9,900,000 | 1,500,000 | 300,000 | ||||||||||||||||||
See notes to the financial statements.
FINANCIAL STATEMENTS | 69 |
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
February 28, 2006
iShares MSCI Netherlands Index Fund | iShares MSCI Spain Index Fund | iShares MSCI Sweden Index Fund | ||||||||||||||||||||||
Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (66,946 | ) | $ | 1,468,147 | $ | 719,361 | $ | 1,393,949 | $ | (188,301 | ) | $ | 1,249,124 | ||||||||||
Net realized gain (loss) | (741,937 | ) | 1,088,579 | 330,888 | 7,090,342 | 97,174 | 1,298,242 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 11,368,434 | 4,968,136 | 9,198,636 | 5,676,241 | 7,736,890 | 7,896,047 | ||||||||||||||||||
Net increase in net assets resulting from operations | 10,559,551 | 7,524,862 | 10,248,885 | 14,160,532 | 7,645,763 | 10,443,413 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (1,617,341 | ) | (561,271 | ) | (1,611,053 | ) | (1,053,358 | ) | (1,227,638 | ) | (420,504 | ) | ||||||||||||
Total distributions to shareholders | (1,617,341 | ) | (561,271 | ) | (1,611,053 | ) | (1,053,358 | ) | (1,227,638 | ) | (420,504 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | 11,702,861 | 29,691,702 | 11,006,783 | 23,479,415 | 35,422,717 | 26,763,849 | ||||||||||||||||||
Cost of shares redeemed | — | (946,288 | ) | — | (15,097,858 | ) | — | (3,032,449 | ) | |||||||||||||||
Net increase in net assets from capital share transactions | 11,702,861 | 28,745,414 | 11,006,783 | 8,381,557 | 35,422,717 | 23,731,400 | ||||||||||||||||||
INCREASE IN NET ASSETS | 20,645,071 | 35,709,005 | 19,644,615 | 21,488,731 | 41,840,842 | 33,754,309 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 63,974,010 | 28,265,005 | 66,945,058 | 45,456,327 | 61,512,506 | 27,758,197 | ||||||||||||||||||
End of period | $ | 84,619,081 | $ | 63,974,010 | $ | 86,589,673 | $ | 66,945,058 | $ | 103,353,348 | $ | 61,512,506 | ||||||||||||
Undistributed net investment income (accumulated net investment loss)included in net assets at end of period | $ | (230,882 | ) | $ | 1,453,405 | $ | 217,469 | $ | 1,109,161 | $ | (187,485 | ) | $ | 1,228,454 | ||||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | 550,000 | 1,600,000 | 300,000 | 675,000 | 1,500,000 | 1,350,000 | ||||||||||||||||||
Shares redeemed | — | (50,000 | ) | — | (450,000 | ) | — | (150,000 | ) | |||||||||||||||
Net increase in shares outstanding | 550,000 | 1,550,000 | 300,000 | 225,000 | 1,500,000 | 1,200,000 | ||||||||||||||||||
See notes to the financial statements.
70 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
February 28, 2006
iShares MSCI Switzerland Index Fund | iShares MSCI United Kingdom Index Fund | |||||||||||||||
Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (215,895 | ) | $ | 773,878 | $ | 5,194,530 | $ | 17,268,103 | |||||||
Net realized gain (loss) | (419,158 | ) | 1,299,897 | (1,982,678 | ) | 37,482,537 | ||||||||||
Net change in unrealized appreciation (depreciation) | 16,439,525 | 7,731,463 | 30,662,937 | 44,274,754 | ||||||||||||
Net increase in net assets resulting from operations | 15,804,472 | 9,805,238 | 33,874,789 | 99,025,394 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (773,209 | ) | (269,799 | ) | (16,085,262 | ) | (10,962,863 | ) | ||||||||
Total distributions to shareholders | (773,209 | ) | (269,799 | ) | (16,085,262 | ) | (10,962,863 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 65,197,703 | 31,861,760 | 142,919,498 | 96,935,420 | ||||||||||||
Cost of shares redeemed | — | (3,993,200 | ) | (11,108,841 | ) | (173,017,720 | ) | |||||||||
Net increase (decrease) in net assets from capital share transactions | 65,197,703 | 27,868,560 | 131,810,657 | (76,082,300 | ) | |||||||||||
INCREASE IN NET ASSETS | 80,228,966 | 37,403,999 | 149,600,184 | 11,980,231 | ||||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 79,324,168 | 41,920,169 | 464,850,329 | 452,870,098 | ||||||||||||
End of period | $ | 159,553,134 | $ | 79,324,168 | $ | 614,450,513 | $ | 464,850,329 | ||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | (217,431 | ) | $ | 771,673 | $ | 2,166,072 | $ | 13,056,804 | |||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||
Shares sold | 3,375,000 | 1,875,000 | 7,400,000 | 5,600,000 | ||||||||||||
Shares redeemed | – | (250,000 | ) | (600,000 | ) | (9,600,000 | ) | |||||||||
Net increase (decrease) in shares outstanding | 3,375,000 | 1,625,000 | 6,800,000 | (4,000,000 | ) | |||||||||||
See notes to the financial statements.
FINANCIAL STATEMENTS | 71 |
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Austria Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 26.62 | $ | 17.04 | $ | 10.61 | $ | 8.19 | $ | 8.18 | $ | 7.67 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.07 | ) | 0.29 | 0.21 | 0.09 | 0.13 | 0.13 | |||||||||||||||||
Net realized and unrealized gain (loss) | 3.73 | 9.38 | 6.39 | 2.43 | (0.12 | ) | 0.52 | |||||||||||||||||
Total from investment operations | 3.66 | 9.67 | 6.60 | 2.52 | 0.01 | 0.65 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.29 | ) | (0.09 | ) | (0.17 | ) | (0.10 | ) | — | (0.14 | ) | |||||||||||||
Return of capital | — | — | — | — | — | (0.00 | )b | |||||||||||||||||
Total distributions | (0.29 | ) | (0.09 | ) | (0.17 | ) | (0.10 | ) | — | (0.14 | ) | |||||||||||||
Net asset value, end of period | $ | 29.99 | $ | 26.62 | $ | 17.04 | $ | 10.61 | $ | 8.19 | $ | 8.18 | ||||||||||||
Total return | 13.86 | %c | 56.82 | % | 62.70 | % | 31.15 | % | 0.12 | % | 8.41 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 302,928 | $ | 196,952 | $ | 57,920 | $ | 22,288 | $ | 14,740 | $ | 11,447 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | %e | 0.57 | % | 0.77 | % | 0.84 | % | 0.84 | % | 0.84 | %f | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.50 | )% | 1.26 | % | 1.37 | % | 0.98 | % | 1.57 | % | 1.69 | %g | ||||||||||||
Portfolio turnover rateh | 15 | % | 21 | % | 11 | % | 26 | % | 32 | % | 66 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets remains unchanged. |
f | Ratio of expenses to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2001 was 0.97%. |
g | Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses for the year ended August 31, 2001 was 1.55%. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
72 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, I N C .
(For a share outstanding throughout each period)
iShares MSCI Belgium Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 18.94 | $ | 14.77 | $ | 11.16 | $ | 10.43 | $ | 11.81 | $ | 13.23 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.03 | ) | 0.71 | 0.37 | 0.41 | 0.25 | 0.19 | |||||||||||||||||
Net realized and unrealized gain (loss) | 2.52 | 3.75 | 4.25 | 0.43 | (1.56 | ) | (1.34 | ) | ||||||||||||||||
Total from investment operations | 2.49 | 4.46 | 4.62 | 0.84 | (1.31 | ) | (1.15 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.81 | ) | (0.29 | ) | (1.01 | ) | (0.11 | ) | (0.07 | ) | (0.27 | ) | ||||||||||||
Total distributions | (0.81 | ) | (0.29 | ) | (1.01 | ) | (0.11 | ) | (0.07 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of period | $ | 20.62 | $ | 18.94 | $ | 14.77 | $ | 11.16 | $ | 10.43 | $ | 11.81 | ||||||||||||
Total return | 13.50 | %b | 30.22 | % | 42.88 | % | 8.25 | % | (11.10 | )% | (8.72 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 79,196 | $ | 46,960 | $ | 24,813 | $ | 21,871 | $ | 10,427 | $ | 9,918 | ||||||||||||
Ratio of expenses to average net assetsc | 0.57 | %d | 0.57 | % | 0.78 | % | 0.84 | % | 0.84 | % | 0.84 | %e | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.35 | )% | 3.89 | % | 2.79 | % | 4.10 | % | 2.26 | % | 1.60 | %f | ||||||||||||
Portfolio turnover rateg | 9 | % | 10 | % | 21 | % | 8 | % | 18 | % | 36 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.56%. |
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%. |
g | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 73 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI EMU Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 74.97 | $ | 59.38 | $ | 50.12 | $ | 46.02 | $ | 56.74 | $ | 76.02 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.10 | 1.76 | 1.36 | 0.93 | 0.75 | 0.72 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 9.67 | 15.13 | 8.69 | 3.62 | (11.47 | ) | (19.32 | ) | ||||||||||||||||
Total from investment operations | 9.77 | 16.89 | 10.05 | 4.55 | (10.72 | ) | (18.60 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.32 | ) | (1.30 | ) | (0.79 | ) | (0.45 | ) | — | (0.42 | ) | |||||||||||||
Return of capital | — | — | — | — | — | (0.26 | ) | |||||||||||||||||
Total distributions | (1.32 | ) | (1.30 | ) | (0.79 | ) | (0.45 | ) | — | (0.68 | ) | |||||||||||||
Net asset value, end of period | $ | 83.42 | $ | 74.97 | $ | 59.38 | $ | 50.12 | $ | 46.02 | $ | 56.74 | ||||||||||||
Total return | 13.16 | %b | 28.54 | % | 20.07 | % | 10.05 | % | (18.89 | )% | (24.51 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,101,121 | $ | 547,284 | $ | 326,606 | $ | 165,388 | $ | 131,168 | $ | 90,779 | ||||||||||||
Ratio of expenses to average net assetsc | 0.56 | %d | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesc | n/a | 0.57 | % | 0.79 | % | n/a | n/a | n/a | ||||||||||||||||
Ratio of net investment income to average net assetsc | 0.27 | % | 2.50 | % | 2.29 | % | 2.08 | % | 1.44 | % | 1.13 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 8 | % | 11 | % | 7 | % | 3 | % | 24 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets remains unchanged. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
74 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI France Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 25.41 | $ | 20.40 | $ | 16.90 | $ | 15.52 | $ | 19.53 | $ | 26.41 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.01 | ) | 0.47 | 0.24 | 0.23 | 0.18 | 0.06 | |||||||||||||||||
Net realized and unrealized gain (loss) | 2.55 | 4.84 | 3.54 | 1.33 | (4.19 | ) | (6.89 | ) | ||||||||||||||||
Total from investment operations | 2.54 | 5.31 | 3.78 | 1.56 | (4.01 | ) | (6.83 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.32 | ) | (0.30 | ) | (0.28 | ) | (0.18 | ) | — | (0.04 | ) | |||||||||||||
Net realized gain | — | — | — | — | — | (0.00 | )b | |||||||||||||||||
Return of capital | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.32 | ) | (0.30 | ) | (0.28 | ) | (0.18 | ) | — | (0.05 | ) | |||||||||||||
Net asset value, end of period | $ | 27.63 | $ | 25.41 | $ | 20.40 | $ | 16.90 | $ | 15.52 | $ | 19.53 | ||||||||||||
Total return | 10.07 | %c | 26.13 | % | 22.44 | % | 10.22 | % | (20.53 | )% | (25.86 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 93,957 | $ | 81,326 | $ | 61,201 | $ | 54,075 | $ | 49,674 | $ | 58,602 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | %e | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.09 | )% | 1.98 | % | 1.23 | % | 1.56 | % | 1.00 | % | 0.28 | % | ||||||||||||
Portfolio turnover ratef | 5 | % | 7 | % | 9 | % | 9 | % | 3 | % | 14 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.55%. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 75 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Germany Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 19.08 | $ | 14.96 | $ | 12.57 | $ | 12.07 | $ | 15.19 | $ | 20.46 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.01 | ) | 0.28 | 0.19 | 0.21 | 0.11 | 0.18 | |||||||||||||||||
Net realized and unrealized gain (loss) | 3.09 | 4.03 | 2.40 | 0.41 | (3.23 | ) | (5.26 | ) | ||||||||||||||||
Total from investment operations | 3.08 | 4.31 | 2.59 | 0.62 | (3.12 | ) | (5.08 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.19 | ) | (0.20 | ) | (0.12 | ) | — | (0.19 | ) | |||||||||||||
Return of capital | — | — | — | — | — | (0.00 | )b | |||||||||||||||||
Total distributions | (0.12 | ) | (0.19 | ) | (0.20 | ) | (0.12 | ) | — | (0.19 | ) | |||||||||||||
Net asset value, end of period | $ | 22.04 | $ | 19.08 | $ | 14.96 | $ | 12.57 | $ | 12.07 | $ | 15.19 | ||||||||||||
Total return | 16.17 | %c | 28.89 | % | 20.55 | % | 5.39 | % | (20.54 | )% | (24.87 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 634,716 | $ | 314,793 | $ | 98,764 | $ | 101,800 | $ | 94,160 | $ | 118,525 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | %e | 0.57 | % | 0.80 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.09 | )% | 1.54 | % | 1.27 | % | 1.98 | % | 0.77 | % | 0.99 | % | ||||||||||||
Portfolio turnover ratef | 7 | % | 9 | % | 9 | % | 11 | % | 9 | % | 20 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.55%. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
76 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Italy Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 25.77 | $ | 20.21 | $ | 16.67 | $ | 15.15 | $ | 17.79 | $ | 22.23 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.14 | 0.78 | 0.56 | 0.43 | 0.37 | 0.24 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.78 | 5.42 | 3.59 | 1.47 | (3.01 | ) | (4.37 | ) | ||||||||||||||||
Total from investment operations | 1.92 | 6.20 | 4.15 | 1.90 | (2.64 | ) | (4.13 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.51 | ) | (0.64 | ) | (0.61 | ) | (0.38 | ) | — | (0.24 | ) | |||||||||||||
Net realized gain | — | — | — | — | — | (0.07 | ) | |||||||||||||||||
Return of capital | — | — | — | — | — | (0.00 | )b | |||||||||||||||||
Total distributions | (0.51 | ) | (0.64 | ) | (0.61 | ) | (0.38 | ) | — | (0.31 | ) | |||||||||||||
Net asset value, end of period | $ | 27.18 | $ | 25.77 | $ | 20.21 | $ | 16.67 | $ | 15.15 | $ | 17.79 | ||||||||||||
Total return | 7.55 | %c | 30.74 | % | 25.09 | % | 12.79 | % | (14.84 | )% | (18.61 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 85,625 | $ | 42,526 | $ | 27,279 | $ | 29,997 | $ | 29,538 | $ | 34,682 | ||||||||||||
Ratio of expenses to average net assetsd | 0.57 | %e | 0.57 | % | 0.83 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | n/a | 0.79 | % | n/a | n/a | n/a | |||||||||||||||||
Ratio of net investment income to average net assetsd | 1.05 | % | 3.18 | % | 2.85 | % | 2.84 | % | 2.34 | % | 1.16 | % | ||||||||||||
Portfolio turnover ratef | 11 | % | 18 | % | 9 | % | 22 | % | 10 | % | 20 | % |
a | Based on average shares outstanding throughout the period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.56%. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 77 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Netherlands Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 19.10 | $ | 15.70 | $ | 14.31 | $ | 14.69 | $ | 18.59 | $ | 23.53 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.02 | ) | 0.57 | 0.39 | 0.30 | 0.25 | 0.28 | |||||||||||||||||
Net realized and unrealized gain (loss) | 3.10 | 3.09 | 1.37 | (0.43 | ) | (4.11 | ) | (4.94 | ) | |||||||||||||||
Total from investment operations | 3.08 | 3.66 | 1.76 | (0.13 | ) | (3.86 | ) | (4.66 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.48 | ) | (0.26 | ) | (0.37 | ) | (0.25 | ) | (0.04 | ) | (0.28 | ) | ||||||||||||
Total distributions | (0.48 | ) | (0.26 | ) | (0.37 | ) | (0.25 | ) | (0.04 | ) | (0.28 | ) | ||||||||||||
Net asset value, end of period | $ | 21.70 | $ | 19.10 | $ | 15.70 | $ | 14.31 | $ | 14.69 | $ | 18.59 | ||||||||||||
Total return | 16.30 | %b | 23.40 | % | 12.28 | % | (0.78 | )% | (20.79 | )% | (19.83 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 84,619 | $ | 63,974 | $ | 28,265 | $ | 18,599 | $ | 19,103 | $ | 24,184 | ||||||||||||
Ratio of expenses to average net assetsc | 0.57 | %d | 0.57 | % | 0.78 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.20 | )% | 3.13 | % | 2.45 | % | 2.37 | % | 1.48 | % | 1.34 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 6 | % | 9 | % | 18 | % | 15 | % | 35 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.56%. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
78 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Spain Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 35.70 | $ | 27.55 | $ | 22.39 | $ | 17.95 | $ | 21.33 | $ | 24.19 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.36 | 0.79 | 0.44 | 0.24 | 0.17 | 0.19 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 4.49 | 7.97 | 4.99 | 4.36 | (3.55 | ) | (2.89 | ) | ||||||||||||||||
Total from investment operations | 4.85 | 8.76 | 5.43 | 4.60 | (3.38 | ) | (2.70 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.74 | ) | (0.61 | ) | (0.27 | ) | (0.16 | ) | — | (0.16 | ) | |||||||||||||
Return of capital | — | — | — | — | — | (0.00 | )b | |||||||||||||||||
Total distributions | (0.74 | ) | (0.61 | ) | (0.27 | ) | (0.16 | ) | — | (0.16 | ) | |||||||||||||
Net asset value, end of period | $ | 39.81 | $ | 35.70 | $ | 27.55 | $ | 22.39 | $ | 17.95 | $ | 21.33 | ||||||||||||
Total return | 13.79 | %c | 31.85 | % | 24.28 | % | 25.81 | % | (15.85 | )% | (11.17 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 86,590 | $ | 66,945 | $ | 45,456 | $ | 50,372 | $ | 18,850 | $ | 27,198 | ||||||||||||
Ratio of expenses to average net assetsd | 0.57 | %e | 0.57 | % | 0.80 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.96 | % | 2.33 | % | 1.64 | % | 1.22 | % | 0.85 | % | 0.82 | % | ||||||||||||
Portfolio turnover ratef | 4 | % | 8 | % | 6 | % | 17 | % | 14 | % | 26 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.55%. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 79 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Sweden Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.58 | $ | 16.82 | $ | 12.59 | $ | 9.88 | $ | 12.88 | $ | 24.38 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.06 | ) | 0.46 | 0.28 | 0.25 | 0.12 | 0.07 | |||||||||||||||||
Net realized and unrealized gain (loss) | 2.66 | 4.45 | 4.20 | 2.58 | (3.12 | ) | (11.52 | ) | ||||||||||||||||
Total from investment operations | 2.60 | 4.91 | 4.48 | 2.83 | (3.00 | ) | (11.45 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.42 | ) | (0.15 | ) | (0.25 | ) | (0.12 | ) | — | (0.05 | ) | |||||||||||||
Return of capital | — | — | — | — | — | (0.00 | )b | |||||||||||||||||
Total distributions | (0.42 | ) | (0.15 | ) | (0.25 | ) | (0.12 | ) | — | (0.05 | ) | |||||||||||||
Net asset value, end of period | $ | 23.76 | $ | 21.58 | $ | 16.82 | $ | 12.59 | $ | 9.88 | $ | 12.88 | ||||||||||||
Total return | 12.15 | %c | 29.21 | % | 35.81 | % | 29.04 | % | (23.29 | )% | (46.99 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 103,353 | $ | 61,513 | $ | 27,758 | $ | 16,992 | $ | 8,154 | $ | 10,630 | ||||||||||||
Ratio of expenses to average net assetsd | 0.57 | %e | 0.58 | % | 0.92 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | 0.57 | % | 0.79 | % | n/a | n/a | n/a | ||||||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.53 | )% | 2.28 | % | 1.74 | % | 2.44 | % | 0.98 | % | 0.40 | % | ||||||||||||
Portfolio turnover ratef | 5 | % | 6 | % | 9 | % | 12 | % | 31 | % | 43 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.56%. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
80 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Switzerland Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.63 | $ | 14.58 | $ | 12.23 | $ | 11.59 | $ | 12.95 | $ | 15.54 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.04 | ) | 0.22 | 0.09 | 0.05 | 0.03 | 0.04 | |||||||||||||||||
Net realized and unrealized gain (loss) | 2.79 | 2.92 | 2.31 | 0.62 | (1.38 | ) | (2.54 | ) | ||||||||||||||||
Total from investment operations | 2.75 | 3.14 | 2.40 | 0.67 | (1.35 | ) | (2.50 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.09 | ) | (0.05 | ) | (0.03 | ) | (0.01 | ) | (0.05 | ) | ||||||||||||
Net realized gain | — | — | — | — | — | (0.04 | ) | |||||||||||||||||
Total distributions | (0.12 | ) | (0.09 | ) | (0.05 | ) | (0.03 | ) | (0.01 | ) | (0.09 | ) | ||||||||||||
Net asset value, end of period | $ | 20.26 | $ | 17.63 | $ | 14.58 | $ | 12.23 | $ | 11.59 | $ | 12.95 | ||||||||||||
Total return | 15.63 | %b | 21.54 | % | 19.56 | % | 5.89 | % | (10.47 | )% | (16.08 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 159,553 | $ | 79,324 | $ | 41,920 | $ | 33,643 | $ | 31,883 | $ | 32,384 | ||||||||||||
Ratio of expenses to average net assetsc | 0.56 | %d | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.40 | )% | 1.34 | % | 0.64 | % | 0.43 | % | 0.20 | % | 0.29 | % | ||||||||||||
Portfolio turnover ratee | 5 | % | 5 | % | 4 | % | 10 | % | 12 | % | 34 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.55%. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 81 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI United Kingdom Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 18.74 | $ | 15.72 | $ | 13.00 | $ | 12.77 | $ | 15.11 | $ | 18.35 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.20 | 0.60 | 0.48 | 0.39 | 0.48 | 0.26 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.08 | 2.76 | 2.72 | 0.12 | (2.60 | ) | (3.23 | ) | ||||||||||||||||
Total from investment operations | 1.28 | 3.36 | 3.20 | 0.51 | (2.12 | ) | (2.97 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.58 | ) | (0.34 | ) | (0.48 | ) | (0.28 | ) | (0.22 | ) | (0.25 | ) | ||||||||||||
Net realized gain | — | — | — | — | — | (0.02 | ) | |||||||||||||||||
Total distributions | (0.58 | ) | (0.34 | ) | (0.48 | ) | (0.28 | ) | (0.22 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of period | $ | 19.44 | $ | 18.74 | $ | 15.72 | $ | 13.00 | $ | 12.77 | $ | 15.11 | ||||||||||||
Total return | 6.97 | %b | 21.53 | % | 24.77 | % | 4.20 | % | (14.19 | )% | (16.20 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 614,451 | $ | 464,850 | $ | 452,870 | $ | 150,809 | $ | 120,067 | $ | 117,883 | ||||||||||||
Ratio of expenses to average net assetsc | 0.56 | %d | 0.57 | % | 0.77 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 2.10 | % | 3.39 | % | 3.11 | % | 3.23 | % | 3.39 | % | 1.57 | % | ||||||||||||
Portfolio turnover ratee | 3 | % | 11 | % | 6 | % | 6 | % | 14 | % | 30 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets remains unchanged. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
82 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited)
iSHARES®, INC.
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, 2006, 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 uses 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 securities of 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; less 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.
1. SIGNIFICANT ACCOUNTING POLICIES
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 the 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 the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
SECURITY VALUATION
The securities and other assets of each Fund are generally valued using market valuations. A market valuation generally means a valuation (i) obtained from an exchange, a pricing service or a major market maker (or dealer), (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker (or dealer) or (iii) based on amortized cost. In the case of shares of funds that are not traded on an exchange, a market valuation means such fund’s published net asset value per share. The investment adviser may use various pricing services or discontinue the use of any pricing service. A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. In the event that current market valuations are not readily available or such valuations do not reflect current market values, the affected investments will be valued using fair value pricing pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”).
NOTESTOTHE FINANCIAL STATEMENTS | 83 |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, 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. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies are translated 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. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective date of such transactions.
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
Italy and Greece may levy taxes on stock dividends at rates of 27.0% and 3.0%, respectively, based on the par value of stock dividends received by the iShares MSCI Italy and iShares MSCI EMU Index Funds. These taxes are paid by the Funds receiving the stock dividends and, if any, are disclosed in their respective Statements of Operations.
The iShares MSCI EMU Index Fund and iShares MSCI Sweden Index Fund may pay foreign taxes on certain taxable corporate events (i.e., spin-offs and tender offers) by Swedish companies whose securities are held by the Funds. The foreign taxes paid by the Funds, if any, are disclosed in their respective Statements 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 capital 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.
The tax character of current year distributions will be determined at the end of the current fiscal year.
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, 2006.
84 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC .
The Funds had tax basis net capital loss carryforwards as of August 31, 2005, the tax year-end of the Funds, as follows:
iShares MSCI Index Fund | Expiring in 2008 | Expiring in 2009 | Expiring in 2010 | Expiring in 2011 | Expiring in 2012 | Expiring in 2013 | Total | ||||||||||||||
Austria | $ | 548,653 | $ | 336,553 | $ | 1,291,324 | $ | 370,948 | $ | 855,364 | $ | — | $ | 3,402,842 | |||||||
Belgium | 94,675 | 450,543 | 1,677,678 | 117,767 | 175,781 | 33,969 | 2,550,413 | ||||||||||||||
EMU | — | 443 | 1,923,552 | 1,144,756 | 4,757,907 | 1,873,963 | 9,700,621 | ||||||||||||||
France | — | — | 3,807,513 | 236,944 | 2,400,550 | — | 6,445,007 | ||||||||||||||
Germany | — | 86,860 | 13,573,336 | 5,469,732 | 8,656,712 | 2,241,687 | 30,028,327 | ||||||||||||||
Italy | — | — | 3,355,772 | 848,408 | 541,980 | 527,327 | 5,273,487 | ||||||||||||||
Netherlands | — | 60,885 | 3,222,792 | 1,497,810 | 2,481,175 | 129,137 | 7,391,799 | ||||||||||||||
Spain | — | — | 1,695,618 | 678,910 | 1,582,094 | — | 3,956,622 | ||||||||||||||
Sweden | — | 89,443 | 3,350,244 | 1,577,551 | 1,149,514 | — | 6,166,752 | ||||||||||||||
Switzerland | — | — | 2,855,879 | 1,018,305 | 2,149,171 | 354,252 | 6,377,607 | ||||||||||||||
United Kingdom | — | — | 9,945,254 | 6,448,554 | 4,272,059 | 1,517,783 | 22,183,650 |
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.
Each Fund reclassifies at the end of its tax year certain amounts to paid-in-capital from accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss), respectively, as a result of permanent book and tax differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, realized foreign currency gains and losses and gains and losses on in-kind redemptions. These reclassifications have no effect on net assets or net asset values per share.
As of February 28, 2006, 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 | |||||||||
Austria | $ | 235,194,221 | $ | 68,146,334 | $ | (202,348 | ) | $ | 67,943,986 | ||||
Belgium | 71,095,574 | 9,525,978 | (1,579,387 | ) | 7,946,591 | ||||||||
EMU | 951,692,708 | 161,627,504 | (7,868,795 | ) | 153,758,709 | ||||||||
France | 93,492,525 | 8,930,613 | (8,205,733 | ) | 724,880 | ||||||||
Germany | 569,485,318 | 75,775,537 | (9,111,415 | ) | 66,664,122 | ||||||||
Italy | 72,866,830 | 14,390,056 | (823,375 | ) | 13,566,681 | ||||||||
Netherlands | 72,890,984 | 11,777,797 | (58,695 | ) | 11,719,102 | ||||||||
Spain | 65,756,525 | 23,145,084 | (6,845 | ) | 23,138,239 | ||||||||
Sweden | 84,464,461 | 19,081,714 | (60,212 | ) | 19,021,502 | ||||||||
Switzerland | 132,687,630 | 27,325,233 | (578,011 | ) | 26,747,222 | ||||||||
United Kingdom | 547,733,313 | 80,136,103 | (15,832,645 | ) | 64,303,458 |
NOTESTOTHE FINANCIAL STATEMENTS | 85 |
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.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Agreement with the Company, Barclays Global 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 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 |
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 and expenses are Covered Expenses as defined above.
SEI Investments Distribution Co. (“SEI”) serves as each Fund’s underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the Company. SEI does not currently receive a fee from the Funds for its distribution services.
Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC”), the Funds are permitted to lend portfolio securities to Barclays Capital, Inc. (“BarCap”). Pursuant to the same exemptive order, Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Company. BarCap and BGI are affiliates 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, 2006, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Austria | $ | 13,871 | |
Belgium | 9,393 | ||
EMU | 104,784 | ||
France | 19,762 | ||
Germany | 46,460 | ||
Italy | 18,575 | ||
Netherlands | 4,686 | ||
Spain | 12,655 | ||
Sweden | 6,472 | ||
Switzerland | 2,837 | ||
United Kingdom | 2,520 |
86 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 did not execute any portfolio transactions with or on behalf of such Fund during the six months ended February 28, 2006.
Pursuant to Rule 17a-7 under the 1940 Act, certain Funds executed cross trades for the six months ended February 28, 2006. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter, for compliance with the requirements and restrictions set forth by Rule 17a-7.
Pursuant to an exemptive order issued by the SEC, 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.
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, 2006, including income earned from these affiliated issuers and net realized gains from sales of these affiliated issuers.
iShares MSCI Index Fund and Name of Affiliated Issuer | Number of Shares Held Beginning of Period (in 000s) | Gross Additions (in 000s) | Gross Reductions (in 000s) | Number of (in 000s) | Value at End of Period | Dividend and Interest Income | Net Realized Gain | ||||||||||
Austria | |||||||||||||||||
IMMF | 2 | 6,944 | 6,927 | 19 | $ | 18,751 | $ | 1,212 | $ | — | |||||||
Belgium | |||||||||||||||||
IMMF | 3 | 3,770 | 3,720 | 53 | 52,521 | 654 | — | ||||||||||
EMU | |||||||||||||||||
IMMF | 12 | 28,371 | 27,456 | 927 | 927,162 | 4,909 | — | ||||||||||
France | |||||||||||||||||
IMMF | 150 | 5,862 | 5,961 | 51 | 50,926 | 1,002 | — | ||||||||||
Germany | |||||||||||||||||
IMMF | 34 | 27,382 | 27,104 | 312 | 312,078 | 4,537 | — | ||||||||||
Italy | |||||||||||||||||
IMMF | 4 | 3,341 | 3,325 | 20 | 20,183 | 554 | — |
NOTESTOTHE FINANCIAL STATEMENTS | 87 |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund and Name of Affiliated Issuer | Number of Shares Held Beginning of Period (in 000s) | Gross Additions (in 000s) | Gross Reductions (in 000s) | Number of (in 000s) | Value at End of Period | Dividend and Interest Income | Net Realized Gain | ||||||||||
Netherlands | |||||||||||||||||
IMMF | 2 | 983 | 981 | 4 | $ | 3,716 | $ | 157 | $ | — | |||||||
Spain | |||||||||||||||||
IMMF | 6 | 1,216 | 1,222 | 0a | 368 | 198 | — | ||||||||||
Sweden | |||||||||||||||||
IMMF | 7 | 1,145 | 1,142 | 10 | 10,113 | 182 | — | ||||||||||
Switzerland | |||||||||||||||||
IMMF | 42 | 6,649 | 6,551 | 140 | 140,279 | 1,140 | — | ||||||||||
United Kingdom | |||||||||||||||||
Barclays PLC | 1,224 | 390 | 80 | 1,534 | 17,962,658 | — | 54,171 | ||||||||||
IMMF | 28 | 17,682 | 16,941 | 769 | 768,877 | 3,042 | — |
a | Rounds to less than 1,000 shares. |
During the six months ended February 28, 2006, the Funds invested cash collateral from securities on loan in a joint investment account with other investment funds managed by BGFA (see Note 5). The joint account invested in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account, the information needed to isolate the activity at the Fund level is not available. As such, 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, 2006, 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, 2006, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Austria | $ | 34,359,731 | $ | 35,631,912 | ||
Belgium | 5,421,844 | 7,410,809 | ||||
EMU | 15,987,505 | 27,970,068 | ||||
France | 4,150,208 | 4,530,747 | ||||
Germany | 32,982,185 | 36,387,332 | ||||
Italy | 6,498,669 | 7,240,334 | ||||
Netherlands | 1,645,905 | 3,047,369 | ||||
Spain | 3,202,170 | 4,159,420 | ||||
Sweden | 3,568,461 | 4,988,711 | ||||
Switzerland | 8,564,881 | 5,991,233 | ||||
United Kingdom | 14,815,541 | 24,661,970 |
88 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
In-kind transactions (see Note 4) for the six months ended February 28, 2006, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Austria | $ | 94,468,225 | $ | 17,084,300 | ||
Belgium | 26,547,663 | — | ||||
EMU | 476,692,600 | — | ||||
France | 51,027,214 | 47,372,480 | ||||
Germany | 339,011,639 | 88,546,759 | ||||
Italy | 38,298,514 | — | ||||
Netherlands | 11,694,630 | — | ||||
Spain | 11,001,645 | — | ||||
Sweden | 35,403,524 | — | ||||
Switzerland | 61,596,111 | — | ||||
United Kingdom | 142,109,263 | 11,012,904 |
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 | |
Austria | 19,800,000 | |
Belgium | 136,200,000 | |
EMU | 500,000,000 | |
France | 340,200,000 | |
Germany | 382,200,000 | |
Italy | 63,600,000 | |
Netherlands | 255,000,000 | |
Spain | 127,800,000 | |
Sweden | 63,600,000 | |
Switzerland | 318,625,000 | |
United Kingdom | 943,200,000 |
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.
NOTESTOTHE FINANCIAL STATEMENTS | 89 |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other 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, 2006, certain Funds had loaned securities which were collateralized by cash. Pursuant to an exemptive order issued by the SEC, the cash collateral received was invested in a joint account with other funds managed by BGFA. The joint account 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 and non-U.S. Government debt 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, 2006 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.
90 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes:
NOTES | 91 |
Notes:
92 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes:
NOTES | 93 |
The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call 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 100 (OEF)
iShares S&P 500 (IVV)
iShares S&P 500 Growth (IVW)
iShares S&P 500 Value (IVE)
iShares S&P MidCap 400 (IJH)
iShares S&P MidCap 400 Growth (IJK)
iShares S&P MidCap 400 Value (IJJ)
iShares S&P SmallCap 600 (IJR)
iShares S&P SmallCap 600 Growth (IJT)
iShares S&P SmallCap 600 Value (IJS)
iShares Domestic Sector Index Funds
iShares Cohen & Steers Realty Majors (ICF)
iShares Dow Jones U.S. Basic Materials Sector (IYM)
iShares Dow Jones U.S. Consumer Services Sector (IYC)
iShares Dow Jones U.S. Consumer Goods 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 Transportation Average (IYT)
iShares Dow Jones U.S. Utilities Sector (IDU)
iShares Dow Jones U.S. Total Market (IYY)
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 Nasdaq Biotechnology (IBB)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
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 Russell Microcap™ (IWC)
iShares International Country 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 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 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/TOPIX 150 (ITF)
iShares Bond Funds
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 GS $ InvesTop™ Corporate (LQD)
iShares Specialty Index Funds
iShares KLD Select SocialSM (KLD)
iShares Dow Jones Select Dividend (DVY)
iShares International Index Funds
iShares MSCI EAFE (EFA)
iShares MSCI EAFE Growth (EFG)
iShares MSCI EAFE Value (EFV)
iShares MSCI Emerging Markets (EEM)
iShares MSCI EMU (EZU)
iShares MSCI Pacific ex-Japan (EPP)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
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 NYSE Index Funds
iShares NYSE Composite (NYC)
iShares NYSE 100 (NY)
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 2006 Semi-Annual Report.
2461-iS-1205
94 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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iSHARES® MSCI AUSTRALIA INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 12.60%, while the Index returned 12.30%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
15.83 | % | 15.70 | % | 15.27 | % | 19.98 | % | 19.79 | % | 19.47 | % | 10.39 | % | 10.35 | % | 10.55 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
15.83 | % | 15.70 | % | 15.27 | % | 148.64 | % | 146.67 | % | 143.39 | % | 167.85 | % | 167.05 | % | 171.87 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 49.76 | % | |
Basic Materials | 17.25 | ||
Consumer Non-Cyclical | 9.97 | ||
Industrial | 9.02 | ||
Energy | 4.35 | ||
Consumer Cyclical | 4.27 | ||
Communications | 2.03 | ||
Utilities | 1.52 | ||
Diversified | 0.59 | ||
Technology | 0.34 | ||
Short-Term and Other Net Assets | 0.90 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
BHP Billiton Ltd. | 11.33 | % | |
National Australia Bank Ltd. | 7.61 | ||
Commonwealth Bank of Australia | 7.53 | ||
Australia & New Zealand Banking Group Ltd. | 6.12 | ||
Westpac Banking Corp. Ltd. | 5.64 | ||
Westfield Group | 3.45 | ||
Woolworths Ltd. | 2.77 | ||
Rio Tinto Ltd. | 2.64 | ||
Woodside Petroleum Ltd. | 2.46 | ||
Rinker Group Ltd. | 2.15 | ||
TOTAL | 51.70 | % | |
FUND PERFORMANCE OVERVIEW | 1 |
Fund Performance Overview
iSHARES® MSCI BRAZIL INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 52.04%, while the Index returned 53.80%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
70.22 | % | 67.25 | % | 73.88 | % | 23.50 | % | 23.03 | % | 26.08 | % | 16.80 | % | 16.34 | % | 19.61 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
70.22 | % | 67.25 | % | 73.88 | % | 187.26 | % | 181.83 | % | 218.59 | % | 140.14 | % | 134.85 | % | 174.57 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Basic Materials | 26.28 | % | |
Energy | 24.79 | ||
Financial | 19.45 | ||
Consumer Non-Cyclical | 8.77 | ||
Communications | 7.63 | ||
Utilities | 7.00 | ||
Industrial | 3.01 | ||
Consumer Cyclical | 2.01 | ||
Diversified | 0.30 | ||
Short-Term and Other Net Assets | 0.76 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Petroleo Brasileiro SA Preferred | 14.02 | % | |
Petroleo Brasileiro SA | 10.77 | ||
Companhia Vale do Rio Doce Class A Preferred | 8.29 | ||
Banco Itau Holding Financeira SA Preferred | 7.39 | ||
Companhia Vale do Rio Doce ADR | 7.23 | ||
Banco Bradesco SA Preferred | 6.12 | ||
Unibanco Uniao de Bancos Brasileiros SA | 5.11 | ||
Companhia de Bebidas das Americas Preferred | 4.03 | ||
Tele Norte Leste Participacoes SA Preferred | 2.45 | ||
Companhia Energetica de Minas Gerais Preferred | 2.44 | ||
TOTAL | 67.85 | % | |
2 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES® MSCI CANADA INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 15.37%, while the Index returned 15.54%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
33.52 | % | 33.50 | % | 34.09 | % | 15.22 | % | 15.54 | % | 15.64 | % | 13.74 | % | 13.76 | % | 14.37 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
33.52 | % | 33.50 | % | 34.09 | % | 103.06 | % | 105.87 | % | 106.80 | % | 261.03 | % | 261.61 | % | 281.46 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 33.88 | % | |
Energy | 25.28 | ||
Basic Materials | 16.67 | ||
Communications | 6.36 | ||
Industrial | 5.94 | ||
Consumer Cyclical | 4.02 | ||
Technology | 2.67 | ||
Consumer Non-Cyclical | 2.53 | ||
Diversified | 1.84 | ||
Utilities | 0.51 | ||
Short-Term and Other Net Assets | 0.30 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Royal Bank of Canada | 6.59 | % | |
Manulife Financial Corp. | 6.20 | ||
Bank of Nova Scotia | 5.08 | ||
EnCana Corp. | 4.33 | ||
Suncor Energy Inc. | 4.17 | ||
Bank of Montreal | 3.69 | ||
Canadian Natural Resources Ltd. | 3.58 | ||
Canadian National Railway Co. | 3.14 | ||
Sun Life Financial Inc. | 3.11 | ||
Petro-Canada | 2.90 | ||
TOTAL | 42.79 | % | |
FUND PERFORMANCE OVERVIEW | 3 |
Fund Performance Overview
iSHARES® MSCI EMERGING MARKETS INDEX FUND
Performance as of February 28, 2006
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 Index is designed to measure equity market performance in the global emerging markets. The Fund invests in a representative sample of the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 26.67%, while the Index returned 30.09%.
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Inception to 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
34.51 | % | 33.46 | % | 36.50 | % | 45.67 | % | 45.30 | % | 44.88 | % | 197.55 | % | 195.34 | % | 193.05 | % |
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 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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 19.57 | % | |
Communications | 14.55 | ||
Energy | 14.14 | ||
Basic Materials | 12.15 | ||
Industrial | 11.83 | ||
Technology | 9.80 | ||
Consumer Non-Cyclical | 5.46 | ||
Utilities | 4.81 | ||
Consumer Cyclical | 4.51 | ||
Diversified | 2.37 | ||
Funds | 0.56 | ||
Short-Term and Other Net Assets | 0.25 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Samsung Electronics Co. Ltd. GDR (South Korea) | 6.36 | % | |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan) | 3.34 | ||
Kookmin Bank ADR (South Korea) | 3.31 | ||
LUKOIL ADR (Russia) | 2.69 | ||
POSCO ADR (South Korea) | 2.57 | ||
Korea Electric Power Corp. ADR (South Korea) | 2.25 | ||
America Movil SA de CV Series L (Mexico) | 2.08 | ||
United Microelectronics Corp. ADR (Taiwan) | 1.87 | ||
Banco Bradesco SA ADR (Brazil) | 1.87 | ||
Siliconware Precision Industries Co. ADR (Taiwan) | 1.85 | ||
TOTAL | 28.19 | % | |
4 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES® MSCI HONG KONG INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 5.33%, while the Index returned 5.71%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
14.77 | % | 14.77 | % | 15.60 | % | 4.43 | % | 4.56 | % | 5.39 | % | 3.24 | % | 3.22 | % | 5.15 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
14.77 | % | 14.77 | % | 15.60 | % | 24.18 | % | 24.96 | % | 30.02 | % | 37.44 | % | 37.18 | % | 64.97 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 43.37 | % | |
Diversified | 18.99 | ||
Utilities | 14.66 | ||
Consumer Cyclical | 10.01 | ||
Industrial | 6.82 | ||
Communications | 4.05 | ||
Technology | 1.03 | ||
Basic Materials | 0.95 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Hutchison Whampoa Ltd. | 11.45 | % | |
Cheung Kong Holdings Ltd. | 8.56 | ||
Sun Hung Kai Properties Ltd. | 7.31 | ||
CLP Holdings Ltd. | 5.92 | ||
Hang Seng Bank Ltd. | 5.76 | ||
Hong Kong & China Gas Co. Ltd. | 5.04 | ||
Swire Pacific Ltd. Class A | 4.95 | ||
BOC Hong Kong Holdings Ltd. | 4.24 | ||
Esprit Holdings Ltd. | 4.23 | ||
Hongkong Electric Holdings Ltd. | 3.70 | ||
TOTAL | 61.16 | % | |
FUND PERFORMANCE OVERVIEW | 5 |
Fund Performance Overview
iSHARES® MSCI MALAYSIA INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 6.26%, while the Index returned 6.72%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
7.46 | % | 6.51 | % | 8.19 | % | 9.07 | % | 9.77 | % | 10.27 | % | (3.51 | )% | (3.54 | )% | (2.38 | )% | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
7.46 | % | 6.51 | % | 8.19 | % | 54.34 | % | 59.38 | % | 63.04 | % | (30.00 | )% | (30.21 | )% | (21.37 | )% |
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 the 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 stock exchange on which it is listed, the market return will use the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 28.46 | % | |
Consumer Cyclical | 15.93 | ||
Consumer Non-Cyclical | 14.19 | ||
Industrial | 13.85 | ||
Communications | 11.03 | ||
Utilities | 9.10 | ||
Diversified | 4.48 | ||
Energy | 1.68 | ||
Technology | 0.67 | ||
Basic Materials | 0.49 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Malayan Banking Bhd | 9.89 | % | |
Bumiputra-Commerce Holdings Bhd | 6.48 | ||
Genting Bhd | 4.91 | ||
Malaysia International Shipping Corp. Bhd | 4.79 | ||
Tenaga Nasional Bhd | 4.71 | ||
IOI Corp. Bhd | 4.59 | ||
Telekom Malaysia Bhd | 4.46 | ||
Maxis Communications Bhd | 4.00 | ||
Sime Darby Bhd | 3.94 | ||
Public Bank Bhd | 3.61 | ||
TOTAL | 51.38 | % | |
6 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES® MSCI MEXICO INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 33.75%, while the Index returned 34.08%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
45.25 | % | 44.34 | % | 47.50 | % | 24.08 | % | 24.11 | % | 24.51 | % | 16.82 | % | 16.80 | % | 18.73 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
45.25 | % | 44.34 | % | 47.50 | % | 194.10 | % | �� | 194.47 | % | 199.24 | % | 371.28 | % | 370.45 | % | 453.89 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Communications | 45.55 | % | |
Industrial | 16.47 | ||
Consumer Cyclical | 11.26 | ||
Consumer Non-Cyclical | 10.33 | ||
Basic Materials | 5.94 | ||
Financial | 5.62 | ||
Diversified | 4.69 | ||
Short-Term and Other Net Assets | 0.14 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
America Movil SA de CV Series L | 24.65 | % | |
Cemex SA de CV Series CPO | 15.41 | ||
Telefonos de Mexico SA de CV Series L | 9.07 | ||
Fomento Economico Mexicano SA de CV Class UBD | 5.21 | ||
Wal-Mart de Mexico SA de CV Series V | 4.81 | ||
Grupo Televisa SA Series CPO | 4.78 | ||
America Telecom SA de CV Series A1 | 3.89 | ||
Grupo Financiero Banorte SA de CV Series O | 3.86 | ||
Grupo Carso SA de CV Series A1 | 3.08 | ||
Grupo Mexico SA de CV Series B | 2.58 | ||
TOTAL | 77.34 | % | |
FUND PERFORMANCE OVERVIEW | 7 |
Fund Performance Overview
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
Performance as of February 28, 2006
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 ex-Japan Index (the “Index”). The Fund invests in a representative sample of the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 10.68%, while the Index returned 10.62%.
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Inception to 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
15.41 | % | 14.93 | % | 15.30 | % | 21.50 | % | 21.36 | % | 21.42 | % | 133.22 | % | 132.03 | % | 132.61 | % |
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.
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 the 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 (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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 47.54 | % | |
Basic Materials | 11.58 | ||
Industrial | 9.08 | ||
Consumer Non-Cyclical | 6.75 | ||
Consumer Cyclical | 5.97 | ||
Communications | 5.45 | ||
Diversified | 5.11 | ||
Utilities | 4.15 | ||
Energy | 2.94 | ||
Technology | 0.79 | ||
Short-Term and Other Net Assets | 0.64 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
BHP Billiton Ltd. (Australia) | 7.56 | % | |
National Australia Bank Ltd. (Australia) | 4.99 | ||
Commonwealth Bank of Australia (Australia) | 4.97 | ||
Australia & New Zealand Banking Group Ltd. | |||
(Australia) | 4.07 | ||
Westpac Banking Corp. Ltd. (Australia) | 3.74 | ||
Hutchison Whampoa Ltd. (Hong Kong) | 2.38 | ||
Westfield Group (Australia) | 2.28 | ||
Woolworths Ltd. (Australia) | 1.84 | ||
Cheung Kong Holdings Ltd. (Hong Kong) | 1.83 | ||
Rio Tinto Ltd. (Australia) | 1.77 | ||
TOTAL | 35.43 | % | |
8 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES® MSCI SINGAPORE INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 14.40%, while the Index returned 14.27%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
21.76 | % | 20.83 | % | 21.05 | % | 8.24 | % | 8.48 | % | 7.72 | % | (1.38 | )% | (1.42 | )% | (1.00 | )% | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
21.76 | % | 20.83 | % | 21.05 | % | 48.57 | % | 50.21 | % | 45.04 | % | (12.90 | )% | (13.25 | )% | (9.58 | )% |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 50.22 | % | |
Communications | 16.60 | ||
Industrial | 12.67 | ||
Consumer Cyclical | 6.52 | ||
Diversified | 6.10 | ||
Consumer Non-Cyclical | 5.01 | ||
Technology | 2.36 | ||
Energy | 0.37 | ||
Short-Term and Other Net Assets | 0.15 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
DBS Group Holdings Ltd. | 12.26 | % | |
Singapore Telecommunications Ltd. | 11.65 | ||
United Overseas Bank Ltd. | 11.62 | ||
Oversea-Chinese Banking Corp. | 11.26 | ||
Singapore Airlines Ltd. | 4.92 | ||
Keppel Corp. Ltd. | 4.90 | ||
Singapore Press Holdings Ltd. | 4.68 | ||
City Developments Ltd. | 3.08 | ||
Capitaland Ltd. | 3.02 | ||
Fraser & Neave Ltd. | 2.75 | ||
TOTAL | 70.14 | % | |
FUND PERFORMANCE OVERVIEW | 9 |
Fund Performance Overview
iSHARES® MSCI SOUTH AFRICA INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 31.71%, while the Index returned 32.91%.
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Inception to 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
35.32 | % | 35.56 | % | 37.30 | % | 42.06 | % | 42.04 | % | 43.95 | % | 193.95 | % | 193.85 | % | 205.97 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Financial | 23.47 | % | |
Basic Materials | 23.02 | ||
Communications | 14.07 | ||
Energy | 10.94 | ||
Consumer Cyclical | 10.22 | ||
Diversified | 8.21 | ||
Consumer Non-Cyclical | 5.15 | ||
Industrial | 4.84 | ||
Short-Term and Other Net Assets | 0.08 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Sasol Ltd. | 10.94 | % | |
Standard Bank Group Ltd. | 8.66 | ||
MTN Group Ltd. | 7.18 | ||
Impala Platinum Holdings Ltd. | 6.00 | ||
Gold Fields Ltd. | 4.75 | ||
FirstRand Ltd. | 4.72 | ||
AngloGold Ashanti Ltd. | 3.79 | ||
Telkom South Africa Ltd. | 3.59 | ||
Naspers Ltd. | 3.29 | ||
Sanlam Ltd. | 3.22 | ||
TOTAL | 56.14 | % | |
10 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Fund Performance Overview
iSHARES® MSCI SOUTH KOREA INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 35.36%, while the Index returned 36.55%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
37.62 | % | 38.58 | % | 40.31 | % | 27.76 | % | 28.80 | % | 29.97 | % | 15.91 | % | 16.24 | % | 16.68 | % | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
37.62 | % | 38.58 | % | 40.31 | % | 240.35 | % | 254.45 | % | 270.86 | % | 135.88 | % | 139.72 | % | 145.02 | % |
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 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 the 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 stock exchange on which it is listed, the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Industrial | 39.18 | % | |
Financial | 19.19 | ||
Consumer Cyclical | 15.45 | ||
Basic Materials | 7.22 | ||
Communications | 6.19 | ||
Consumer Non-Cyclical | 5.06 | ||
Utilities | 3.60 | ||
Energy | 3.07 | ||
Short-Term and Other Net Assets | 1.04 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Samsung Electronics Co. Ltd. | 22.69 | % | |
Kookmin Bank | 8.02 | ||
POSCO | 5.31 | ||
Hyundai Motor Co. Ltd. | 4.50 | ||
Korea Electric Power Corp. | 3.60 | ||
LG Electronics Inc. | 2.98 | ||
Shinhan Financial Group Ltd. | 2.95 | ||
Shinsegae Co. Ltd. | 2.24 | ||
SK Corp. | 2.02 | ||
KT&G Corp. | 2.00 | ||
TOTAL | 56.31 | % | |
FUND PERFORMANCE OVERVIEW | 11 |
Fund Performance Overview
iSHARES® MSCI TAIWAN INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 11.24%, while the Index returned 12.34%.
Average Annual Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
4.55 | % | 1.98 | % | 6.17 | % | 1.24 | % | 1.53 | % | 2.48 | % | (6.18 | )% | (6.16 | )% | (5.20 | )% | ||||||||
Cumulative Total Returns | |||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | |||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||
4.55 | % | 1.98 | % | 6.17 | % | 6.34 | % | 7.90 | % | 13.03 | % | (30.45 | )% | (30.39 | )% | (26.26 | )% |
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 the 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 stock exchange on which it is listed, the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Technology | 36.00 | % | |
Industrial | 23.90 | ||
Financial | 19.84 | ||
Basic Materials | 10.93 | ||
Communications | 4.35 | ||
Consumer Cyclical | 3.91 | ||
Consumer Non-Cyclical | 0.98 | ||
Short-Term and Other Net Assets | 0.09 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 15.34 | % | |
Hon Hai Precision Industry Co. Ltd. | 7.98 | ||
United Microelectronics Corp. | 4.08 | ||
Cathay Financial Holding Co. Ltd. | 3.94 | ||
AU Optronics Corp. | 3.34 | ||
MediaTek Inc. | 3.25 | ||
China Steel Corp. | 3.01 | ||
Chunghwa Telecom Co. Ltd. | 2.87 | ||
Mega Financial Holding Co. Ltd. | 2.75 | ||
Formosa Plastic Co. | 2.74 | ||
TOTAL | 49.30 | % | |
12 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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, 2005 to February 28, 2006.
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, 2005) | Ending Account Value (February 28, 2006) | Annualized Expense Ratio | Expenses Paid During Period a (September 1, 2005 to February 28, 2006) | ||||||||
Australia | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,126.00 | 0.56 | % | $ | 2.95 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||
Brazil | ||||||||||||
Actual | 1,000.00 | 1,520.40 | 0.73 | 4.56 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.17 | 0.73 | 3.66 | ||||||||
Canada | ||||||||||||
Actual | 1,000.00 | 1,153.70 | 0.56 | 2.99 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||
Emerging Markets | ||||||||||||
Actual | 1,000.00 | 1,266.70 | 0.79 | 4.44 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,020.88 | 0.79 | 3.96 | ||||||||
Hong Kong | ||||||||||||
Actual | 1,000.00 | 1,053.30 | 0.56 | 2.85 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 |
SHAREHOLDER EXPENSES | 13 |
Shareholder Expenses (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (September 1, 2005) | Ending Account Value (February 28, 2006) | Annualized Expense Ratio | Expenses Paid During Period a (September 1, 2005 to February 28, 2006) | ||||||||
Malaysia | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,062.60 | 0.56 | % | $ | 2.86 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||
Mexico | ||||||||||||
Actual | 1,000.00 | 1,337.50 | 0.56 | 3.25 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||
Pacific ex-Japan | ||||||||||||
Actual | 1,000.00 | 1,106.80 | 0.51 | 2.66 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.27 | 0.51 | 2.56 | ||||||||
Singapore | ||||||||||||
Actual | 1,000.00 | 1,144.00 | 0.56 | 2.98 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||
South Africa | ||||||||||||
Actual | 1,000.00 | 1,317.10 | 0.73 | 4.19 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.17 | 0.73 | 3.66 | ||||||||
South Korea | ||||||||||||
Actual | 1,000.00 | 1,353.60 | 0.73 | 4.26 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.17 | 0.73 | 3.66 | ||||||||
Taiwan | ||||||||||||
Actual | 1,000.00 | 1,112.40 | 0.75 | 3.93 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.08 | 0.75 | 3.76 |
a | 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 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.10% | |||||
AIRLINES – 0.50% | |||||
Qantas Airways Ltd. | 842,886 | $ | 2,567,165 | ||
2,567,165 | |||||
APPAREL – 0.27% | |||||
Billabong International Ltd. | 120,357 | 1,387,600 | |||
1,387,600 | |||||
BANKS – 28.69% | |||||
Australia & New Zealand Banking Group Ltd. | 1,642,815 | 31,387,791 | |||
Commonwealth Bank of Australia | 1,159,194 | 38,620,661 | |||
Macquarie Office Trust | 1,621,788 | 1,632,430 | |||
National Australia Bank Ltd. | 1,432,416 | 39,030,096 | |||
Suncorp-Metway Ltd. | 494,844 | 7,520,991 | |||
Westpac Banking Corp. Ltd. | 1,648,233 | 28,907,845 | |||
147,099,814 | |||||
BEVERAGES – 2.22% | |||||
Coca-Cola Amatil Ltd. | 474,075 | 2,482,775 | |||
Foster’s Group Ltd. | 1,812,579 | 7,324,820 | |||
Lion Nathan Ltd. | 264,450 | 1,571,573 | |||
11,379,168 | |||||
BIOTECHNOLOGY – 0.53% | |||||
Sonic Healthcare Ltd. | 236,844 | 2,732,341 | |||
2,732,341 | |||||
BUILDING MATERIALS – 3.81% | |||||
Boral Ltd. | 524,643 | 3,425,736 | |||
CSR Ltd. | 825,729 | 2,343,161 | |||
James Hardie Industries NV | 418,605 | 2,761,331 | |||
Rinker Group Ltd. | 829,470 | 11,023,313 | |||
19,553,541 | |||||
COMMERCIAL SERVICES – 2.01% | |||||
Brambles Industries Ltd.1 | 872,427 | 6,513,228 | |||
Transurban Group | 717,498 | 3,805,573 | |||
10,318,801 | |||||
COMPUTERS – 0.34% | |||||
Computershare Ltd. | 349,203 | 1,756,175 | |||
1,756,175 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.51% | |||||
Australian Stock Exchange Ltd. | 93,396 | 2,252,049 | |||
Babcock & Brown Ltd. | 136,095 | 1,752,031 | |||
Challenger Financial Services Group Ltd. | 358,878 | 1,037,045 | |||
Macquarie Bank Ltd. | 208,593 | 9,952,651 | |||
Perpetual Ltd. | 37,023 | 1,870,172 | |||
SFE Corp. Ltd. | 119,712 | 1,137,390 | |||
18,001,338 | |||||
ENGINEERING & CONSTRUCTION – 0.87% | |||||
Downer EDI Ltd. | 248,841 | 1,451,085 | |||
Leighton Holdings Ltd. | 123,066 | 1,665,665 | |||
Multiplex Group | 563,472 | 1,322,698 | |||
4,439,448 | |||||
ENTERTAINMENT – 1.74% | |||||
Aristocrat Leisure Ltd. | 275,415 | 2,465,334 | |||
TABCORP Holdings Ltd. | 475,365 | 5,363,967 | |||
UNiTAB Ltd. | 106,554 | 1,089,946 | |||
8,919,247 | |||||
FOOD – 2.77% | |||||
Woolworths Ltd. | 1,038,837 | 14,199,281 | |||
14,199,281 | |||||
FOREST PRODUCTS & PAPER – 0.20% | |||||
PaperlinX Ltd. | 398,481 | 1,006,440 | |||
1,006,440 | |||||
GAS – 1.52% | |||||
Alinta Ltd. | 228,717 | 1,889,315 | |||
Australian Gas Light Co. Ltd. | 413,445 | 5,881,494 | |||
7,770,809 | |||||
HEALTH CARE - PRODUCTS – 0.35% | |||||
Cochlear Ltd. | 49,020 | 1,784,311 | |||
1,784,311 | |||||
HEALTH CARE - SERVICES – 0.19% | |||||
DCA Group Ltd. | 373,326 | 973,412 | |||
973,412 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.59% | |||||
Patrick Corp. Ltd. | 592,110 | 3,012,965 | |||
3,012,965 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.15% | |||||
Pacific Brands Ltd. | 445,308 | 750,909 | |||
750,909 |
SCHEDULESOF INVESTMENTS | 15 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2006
Security | Shares | Value | ||||
INSURANCE – 5.97% | ||||||
AMP Ltd. | 1,684,224 | $ | 10,759,682 | |||
AXA Asia Pacific Holdings Ltd. | 788,835 | 3,428,019 | ||||
Insurance Australia Group Ltd. | 1,433,190 | 5,738,438 | ||||
QBE Insurance Group Ltd. | 695,955 | 10,701,697 | ||||
30,627,836 | ||||||
INVESTMENT COMPANIES – 1.60% | ||||||
Macquarie Airports | 579,855 | 1,391,307 | ||||
Macquarie Communications Infrastructure Group | 303,408 | 1,277,942 | ||||
Macquarie Infrastructure Group | 2,135,208 | 5,551,487 | ||||
8,220,736 | ||||||
IRON & STEEL – 0.89% | ||||||
BlueScope Steel Ltd. | 637,647 | 3,126,262 | ||||
OneSteel Ltd. | 505,164 | 1,448,508 | ||||
4,574,770 | ||||||
MANUFACTURING – 3.10% | ||||||
Ansell Ltd. | 129,387 | 1,057,266 | ||||
Futuris Corp. Ltd. | 494,457 | 866,845 | ||||
Orica Ltd. | 275,673 | 4,707,977 | ||||
Wesfarmers Ltd. | 340,818 | 9,266,265 | ||||
15,898,353 | ||||||
MEDIA – 0.96% | ||||||
APN News & Media Ltd. | 259,419 | 915,370 | ||||
John Fairfax Holdings Ltd. | 838,629 | 2,473,213 | ||||
Publishing & Broadcasting Ltd. | 121,131 | 1,533,296 | ||||
4,921,879 | ||||||
MINING – 16.16% | ||||||
Alumina Ltd. | 1,046,835 | 5,396,831 | ||||
BHP Billiton Ltd. | 3,225,645 | 58,107,132 | ||||
Iluka Resources Ltd. | 208,335 | 1,104,998 | ||||
Newcrest Mining Ltd. | 299,409 | 4,715,219 | ||||
Rio Tinto Ltd. | 255,549 | 13,516,222 | ||||
82,840,402 | ||||||
OIL & GAS – 4.35% | ||||||
Caltex Australia Ltd. | 122,163 | 1,560,879 | ||||
Origin Energy Ltd. | 707,694 | 3,627,402 | ||||
Santos Ltd. | 535,866 | 4,506,130 | ||||
Woodside Petroleum Ltd. | 419,250 | 12,610,200 | ||||
22,304,611 | ||||||
Security | Shares or Principal | Value | ||||
PACKAGING & CONTAINERS – 0.86% | ||||||
Amcor Ltd. | 796,059 | $ | 4,399,662 | |||
4,399,662 | ||||||
PHARMACEUTICALS – 1.75% | ||||||
CSL Ltd. | 162,540 | 6,363,148 | ||||
Mayne Pharma Ltd.2 | 571,599 | 1,176,176 | ||||
Symbion Health Ltd. | 585,660 | 1,457,443 | ||||
8,996,767 | ||||||
REAL ESTATE – 9.99% | ||||||
Centro Properties Group | 728,979 | 3,682,350 | ||||
Commonwealth Property Office Fund | 1,390,491 | 1,394,451 | ||||
DB RREEF Trust | 2,354,895 | 2,466,561 | ||||
Gandel Retail Trust | 1,370,754 | 1,985,616 | ||||
GPT Group | 1,642,944 | 5,064,913 | ||||
ING Industrial Fund | 673,380 | 1,145,505 | ||||
Investa Property Group | 1,393,329 | 2,080,419 | ||||
Lend Lease Corp. Ltd. | 325,080 | 3,219,004 | ||||
Macquarie Goodman Group | 1,093,662 | 4,102,755 | ||||
Mirvac Group | 775,032 | 2,423,834 | ||||
Stockland Trust Group | 1,197,378 | 5,986,148 | ||||
Westfield Group | 1,338,117 | 17,693,560 | ||||
51,245,116 | ||||||
RETAIL – 1.76% | ||||||
Coles Myer Ltd. | 1,065,540 | 7,772,887 | ||||
Harvey Norman Holdings Ltd. | 473,172 | 1,230,235 | ||||
9,003,122 | ||||||
TELECOMMUNICATIONS – 1.07% | ||||||
Telstra Corp. Ltd. | 1,913,586 | 5,472,803 | ||||
5,472,803 | ||||||
TRANSPORTATION – 0.38% | ||||||
Toll Holdings Ltd. | 224,847 | 1,950,882 | ||||
1,950,882 | ||||||
TOTAL COMMON STOCKS | 508,109,704 | |||||
SHORT-TERM INVESTMENTS – 0.08% | ||||||
CERTIFICATES OF DEPOSIT3 – 0.00% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 1,498 | 1,496 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 2,397 | 2,397 | ||||
3,893 |
16 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
COMMERCIAL PAPER3 – 0.00% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | $ | 1,498 | $ | 1,486 | ||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 899 | 894 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 1,498 | 1,486 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 860 | 855 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 1,498 | 1,485 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 3,146 | 3,134 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 1,798 | 1,790 | ||||
11,130 | ||||||
MEDIUM-TERM NOTES3 – 0.00% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 929 | 929 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 1,798 | 1,798 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 2,997 | 3,005 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 3,746 | 3,746 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 599 | 591 | ||||
10,069 | ||||||
MONEY MARKET FUNDS – 0.01% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 72,364 | 72,364 | ||||
72,364 | ||||||
REPURCHASE AGREEMENTS3 – 0.02% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $4,496 (collateralized by non-U.S. Government debt securities, value $4,952, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 4,495 | 4,495 | |||
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $14,985 (collateralized by U.S. Government obligations, value $15,313, 3.69% to 10.00%, 5/1/09 to 1/1/36). | $ | 14,983 | $ | 14,983 | ||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $7,493 (collateralized by non-U.S. Government debt securities, value $7,879, 1.01%, 9/19/35).6 | 7,492 | 7,492 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $14,985 (collateralized by U.S. Government obligations, value $15,307, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 14,983 | 14,983 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $14,985 (collateralized by non-U.S. Government debt securities, value $15,757, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 14,983 | 14,983 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $3,596 (collateralized by U.S. Government obligations, value $3,674, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 3,596 | 3,596 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $2,997 (collateralized by non-U.S. Government debt securities, value $3,092, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 2,997 | 2,997 |
SCHEDULESOF INVESTMENTS | 17 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $14,985 (collateralized by non-U.S. Government debt securities, value $15,733, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | $ | 14,983 | $ | 14,983 | ||
78,512 | ||||||
TIME DEPOSITS3 – 0.01% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 5,993 | 5,993 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 10,488 | 10,488 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 5,392 | 5,392 | ||||
21,873 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 0.04% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 8,418 | 8,421 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 7,042 | 7,041 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 1,199 | 1,199 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 899 | 900 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 9,739 | 9,742 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 1,948 | 1,948 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 2,997 | 2,997 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 3,866 | 3,866 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 2,997 | 2,997 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 8,061 | 8,061 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 749 | 749 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 2,997 | 2,997 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 749 | 749 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 2,997 | 2,997 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 5,993 | 5,993 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 599 | 599 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 1,348 | 1,349 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 749 | 749 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 2,997 | 2,997 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 2,997 | 2,997 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 8,241 | 8,241 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 1,049 | 1,049 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 2,697 | 2,697 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 3,140 | 3,140 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 2,397 | 2,397 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 1,648 | 1,648 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 8,960 | 8,964 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 5,993 | 5,993 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/077 | 2,247 | 2,247 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 8,091 | 8,091 |
18 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/077 | $ | 5,244 | $ | 5,244 | ||
Northern Rock PLC | ||||||
4.61%, 02/02/077 | 3,596 | 3,596 | ||||
Permanent Financing PLC | ||||||
4.53%, 03/10/06 - 06/12/067 | 8,151 | 8,151 | ||||
Pfizer Investment Capital PLC | ||||||
4.53%, 02/15/077 | 7,492 | 7,492 | ||||
Principal Life Income Funding Trusts | ||||||
4.70%, 05/10/06 | 2,247 | 2,247 | ||||
Sedna Finance Inc. | ||||||
4.54%, 09/20/067 | 899 | 899 | ||||
Sigma Finance Inc. | ||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 3,326 | 3,326 | ||||
Skandinaviska Enskilda Bank NY | ||||||
4.56%, 03/19/077 | 2,997 | 2,997 | ||||
Societe Generale | ||||||
4.54%, 03/02/077 | 2,098 | 2,098 | ||||
Strips III LLC | ||||||
4.62%, 07/24/067,8 | 773 | 773 | ||||
SunTrust Bank | ||||||
4.62%, 04/28/06 | 4,495 | 4,495 | ||||
Tango Finance Corp. | ||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 6,682 | 6,683 | ||||
Toyota Motor Credit Corp. | ||||||
4.57%, 04/10/06 | 1,348 | 1,348 | ||||
UniCredito Italiano SpA | ||||||
4.43%, 06/14/06 | 3,896 | 3,895 | ||||
Union Hamilton Special Funding LLC | ||||||
4.52%, 03/28/067 | 2,997 | 2,997 | ||||
US Bank N.A. | ||||||
4.54%, 09/29/06 | 1,348 | 1,348 | ||||
Variable Funding Capital Corp. | ||||||
4.52%, 03/09/06 - 03/13/06 | 4,495 | 4,495 | ||||
Wachovia Asset Securitization Inc. | ||||||
4.57%, 03/26/067 | 5,719 | 5,719 | ||||
Wells Fargo & Co. | ||||||
4.56%, 03/15/077 | 1,498 | 1,498 | ||||
WhistleJacket Capital Ltd. | ||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 1,498 | 1,498 | ||||
White Pine Finance LLC | ||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 3,146 | 3,146 | ||||
Winston Funding Ltd. | ||||||
4.68%, 04/23/067 | 2,140 | 2,140 | ||||
World Savings Bank | ||||||
4.52%, 03/09/06 | 4,495 | 4,495 | ||||
194,395 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 392,236 | |||||
TOTAL INVESTMENTS IN SECURITIES – 99.18% | 508,501,940 | |||||
Other Assets, Less Liabilities – 0.82% | 4,193,860 | |||||
NET ASSETS – 100.00% | $ | 512,695,800 | ||||
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 (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 19 |
Schedule of Investments (Unaudited)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 33.52% | |||||
AGRICULTURE – 0.78% | |||||
Souza Cruz SA | 929,000 | $ | 15,335,942 | ||
15,335,942 | |||||
BANKS – 5.33% | |||||
Banco Nossa Caixa SA | 186,500 | 4,260,848 | |||
Unibanco Uniao de Bancos Brasileiros SA | 5,704,610 | 100,005,416 | |||
104,266,264 | |||||
CHEMICALS – 0.65% | |||||
Braskem SA Class A | 1,486,436 | 12,776,905 | |||
12,776,905 | |||||
COMMERCIAL SERVICES – 0.90% | |||||
Cia de Concessoes Rodoviarias | 1,858,000 | 17,555,561 | |||
17,555,561 | |||||
COSMETICS& PERSONAL CARE – 0.83% | |||||
Natura Cosmeticos SA | 278,700 | 16,285,957 | |||
16,285,957 | |||||
ELECTRIC – 1.65% | |||||
Centrais Eletricas Brasileiras SA | 1,114,800,000 | 23,635,655 | |||
EDP - Energias do Brasil SA | 557,400 | 8,534,367 | |||
32,170,022 | |||||
HEALTH CARE - SERVICES – 0.59% | |||||
Diagnosticos da America SA1 | 464,500 | 11,590,610 | |||
11,590,610 | |||||
IRON & STEEL – 2.15% | |||||
Companhia Siderurgica Nacional SA | 1,393,584 | 41,991,405 | |||
41,991,405 | |||||
MINING – 7.23% | |||||
Companhia Vale do Rio Doce ADR | 3,044,333 | 141,348,380 | |||
141,348,380 | |||||
OIL & GAS – 10.77% | |||||
Petroleo Brasileiro SA | 9,197,100 | 210,640,462 | |||
210,640,462 | |||||
REAL ESTATE – 0.61% | |||||
Cyrela Brazil Realty SA | 650,300 | 11,954,855 | |||
11,954,855 | |||||
TELECOMMUNICATIONS – 1.42% | |||||
Brasil Telecom Participacoes SA | 650,300,000 | 8,151,732 | |||
Tele Norte Leste Participacoes SA | 745,738 | 19,609,887 | |||
27,761,619 | |||||
WATER – 0.61% | |||||
Companhia de Saneamento Basico do Estado de Sao Paulo | 148,640,000 | 11,985,063 | |||
11,985,063 | |||||
TOTAL COMMON STOCKS | 655,663,045 | ||||
PREFERRED STOCKS – 65.72% | |||||
AEROSPACE & DEFENSE – 1.73% | |||||
Empresa Brasileira de Aeronautica SA | 3,344,443 | 33,885,733 | |||
33,885,733 | |||||
AIRLINES – 0.78% | |||||
Gol Linhas Aereas Inteligentes SA | 464,500 | 15,338,132 | |||
15,338,132 | |||||
BANKS – 13.51% | |||||
Banco Bradesco SA | 2,898,200 | 119,642,941 | |||
Banco Itau Holding Financeira SA | 4,467,970 | 144,651,055 | |||
264,293,996 | |||||
BEVERAGES – 4.03% | |||||
Companhia de Bebidas das Americas | 185,800,000 | 78,890,574 | |||
78,890,574 | |||||
BUILDING MATERIALS – 0.78% | |||||
Duratex SA | 836,110 | 15,169,762 | |||
15,169,762 | |||||
ELECTRIC – 4.49% | |||||
Centrais Eletricas Brasileiras SA Class B | 836,100,000 | 18,380,806 | |||
Companhia Energetica de Minas Gerais | 929,000,000 | 47,719,609 | |||
Companhia Paranaense de Energia Class B | 1,486,400,000 | 16,320,984 | |||
Eletropaulo Metropolitana de Sao Paulo SA1 | 111,480,000 | 5,500,976 | |||
87,922,375 |
20 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2006
Security | Shares | Value | |||
FOOD – 1.64% | |||||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar | 334,440,000 | $ | 14,184,543 | ||
Sadia SA | 5,574,000 | 17,862,017 | |||
32,046,560 | |||||
FOREST PRODUCTS & PAPER – 2.37% | |||||
Aracruz Celulose SA Class B | 4,552,100 | 22,524,529 | |||
Klabin SA | 5,574,000 | 13,133,836 | |||
Votorantim Celulose e Papel SA | 703,000 | 10,766,965 | |||
46,425,330 | |||||
GAS – 0.25% | |||||
Cia de Gas de Sao Paulo Class A | 37,160,000 | 4,850,763 | |||
4,850,763 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.30% | |||||
Contax Participacoes SA | 4,135,539 | 5,807,684 | |||
5,807,684 | |||||
IRON & STEEL – 4.03% | |||||
Gerdau SA | 1,950,916 | 45,049,427 | |||
Usinas Siderurgicas de Minas Gerais SA Class A | 1,021,900 | 33,710,179 | |||
78,759,606 | |||||
MACHINERY – 0.50% | |||||
Weg SA | 2,694,100 | 9,712,472 | |||
9,712,472 | |||||
MINING – 9.85% | |||||
Caemi Mineracao e Metalurgica SA | 17,651,000 | 30,444,232 | |||
Companhia Vale do Rio Doce Class A | 3,808,900 | 162,264,166 | |||
192,708,398 | |||||
OIL & GAS – 14.02% | |||||
Petroleo Brasileiro SA | 13,006,000 | 274,278,275 | |||
274,278,275 | |||||
RETAIL – 1.02% | |||||
Lojas Americanas SA | 464,500,000 | 20,007,209 | |||
20,007,209 | |||||
TELECOMMUNICATIONS – 6.21% | |||||
Brasil Telecom Participacoes SA | 2,136,700,000 | 16,946,595 | |||
Celular CRT Participacoes SA Class A | 95,160 | 3,318,492 | |||
Embratel Participacoes SA1 | 4,180,500,000 | 10,677,791 | |||
Tele Centro Oeste Celular Participacoes SA | 557,412 | 8,537,177 | |||
Tele Norte Leste Participacoes SA | 2,508,339 | 47,873,577 | |||
Telemig Celular Participacoes SA | 1,950,900,000 | 5,516,209 | |||
Telesp Celular Participacoes SA1 | 1,852,597 | 9,472,515 | |||
TIM Participacoes SA | 4,923,700,000 | 19,119,367 | |||
121,461,723 | |||||
TEXTILES – 0.21% | |||||
Companhia de Tecidos Norte de Minas | 37,160,400 | 4,150,337 | |||
4,150,337 | |||||
TOTAL PREFERRED STOCKS | 1,285,708,929 | ||||
SHORT-TERM INVESTMENTS – 0.13% | |||||
MONEY MARKET FUNDS – 0.13% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | |||||
4.51%2,3 | 2,525,013 | 2,525,013 | |||
2,525,013 | |||||
TOTAL SHORT-TERM INVESTMENTS | 2,525,013 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.37% | 1,943,896,987 | ||||
Other Assets, Less Liabilities – 0.63% | 12,317,860 | ||||
NET ASSETS – 100.00% | $ | 1,956,214,847 | |||
ADR - American Depositary Receipts
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
3 | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 21 |
Schedule of Investments (Unaudited)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.70% | |||||
AEROSPACE & DEFENSE – 0.25% | |||||
CAE Inc. | 295,809 | $ | 2,453,920 | ||
2,453,920 | |||||
APPAREL – 0.36% | |||||
Gildan Activewear Inc.1 | 69,472 | 3,464,595 | |||
3,464,595 | |||||
AUTO PARTS & EQUIPMENT – 0.98% | |||||
Magna International Inc. Class A | 126,059 | 9,388,374 | |||
9,388,374 | |||||
BANKS – 19.37% | |||||
Bank of Montreal | 586,626 | 35,554,809 | |||
Bank of Nova Scotia | 1,166,607 | 48,901,229 | |||
Canadian Imperial Bank of Commerce | 391,916 | 27,535,203 | |||
National Bank of Canada | 195,126 | 11,111,354 | |||
Royal Bank of Canada | 760,104 | 63,429,391 | |||
186,531,986 | |||||
BEVERAGES – 0.09% | |||||
Cott Corp.1 | 68,640 | 838,434 | |||
838,434 | |||||
CHEMICALS – 2.29% | |||||
Agrium Inc. | 158,923 | 3,952,301 | |||
Methanex Corp. | 136,043 | 2,697,069 | |||
NOVA Chemicals Corp. | 96,939 | 3,152,786 | |||
Potash Corp. of Saskatchewan Inc. | 128,139 | 12,272,832 | |||
22,074,988 | |||||
COMMERCIAL SERVICES – 0.10% | |||||
Quebecor World Inc. | 96,107 | 975,470 | |||
975,470 | |||||
COMPUTERS – 1.66% | |||||
CGI Group Inc.1 | 335,349 | 2,513,754 | |||
Research In Motion Ltd.1 | 190,550 | 13,466,348 | |||
15,980,102 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.41% | |||||
C.I. Financial Inc. | 182,646 | 4,494,124 | |||
IGM Financial Inc. | 140,203 | 5,704,468 | |||
TSX Group Inc. | 79,456 | 3,365,507 | |||
13,564,099 | |||||
ELECTRIC – 0.51% | |||||
TransAlta Corp. | 230,486 | 4,875,256 | |||
4,875,256 | |||||
ELECTRONICS – 0.26% | |||||
Celestica Inc.1 | 234,646 | 2,540,392 | |||
2,540,392 | |||||
ENGINEERING & CONSTRUCTION – 0.51% | |||||
SNC-Lavalin Group Inc. | 59,488 | 4,946,922 | |||
4,946,922 | |||||
ENTERTAINMENT – 0.18% | |||||
Intrawest Corp. | 55,328 | 1,759,586 | |||
1,759,586 | |||||
FOOD – 1.33% | |||||
George Weston Ltd. | 59,904 | 4,587,753 | |||
Loblaw Companies Ltd. | 130,219 | 6,591,339 | |||
Saputo Inc. | 54,912 | 1,613,171 | |||
12,792,263 | |||||
FOREST PRODUCTS & PAPER – 0.43% | |||||
Abitibi-Consolidated Inc. | 461,815 | 1,607,089 | |||
Canfor Corp.1 | 109,835 | 1,303,021 | |||
Domtar Inc. | 227,574 | 1,229,914 | |||
4,140,024 | |||||
HAND & MACHINE TOOLS – 0.35% | |||||
Finning International Inc. | 101,931 | 3,359,930 | |||
3,359,930 | |||||
HEALTH CARE - SERVICES – 0.35% | |||||
MDS Inc. | 167,670 | 3,388,910 | |||
3,388,910 | |||||
HOLDING COMPANIES - DIVERSIFIED – 1.84% | |||||
Brookfield Asset Management Inc. Class A | 275,009 | 15,068,159 | |||
Onex Corp. | 147,691 | 2,616,504 | |||
17,684,663 | |||||
INSURANCE – 12.41% | |||||
Fairfax Financial Holdings Ltd. | 19,968 | 2,864,604 | |||
Great-West Lifeco Inc. | 314,529 | 8,070,870 | |||
Manulife Financial Corp. | 936,121 | 59,715,298 | |||
Power Corp. of Canada | 376,940 | 10,401,086 |
22 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Power Financial Corp. | 291,649 | $ | 8,547,383 | ||
Sun Life Financial Inc. | 684,824 | 29,939,799 | |||
119,539,040 | |||||
IRON & STEEL – 0.69% | |||||
Algoma Steel Inc. | 47,008 | 1,243,412 | |||
IPSCO Inc. | 55,918 | 5,380,747 | |||
6,624,159 | |||||
LODGING – 0.57% | |||||
Fairmont Hotels & Resorts Inc. | 86,539 | 3,826,743 | |||
Four Seasons Hotels Inc. | 29,952 | 1,695,600 | |||
5,522,343 | |||||
MANUFACTURING – 0.44% | |||||
Bombardier Inc. Class B1 | 1,665,873 | 4,274,660 | |||
4,274,660 | |||||
MEDIA – 2.74% | |||||
Rogers Communications Inc. Class B | 254,610 | 10,180,373 | |||
Shaw Communications Inc. Class B | 222,582 | 5,819,073 | |||
Thomson Corp. | 270,849 | 10,348,886 | |||
26,348,332 | |||||
MINING – 13.26% | |||||
Aber Diamond Corp. | 56,160 | 2,117,197 | |||
Agnico-Eagle Mines Ltd. | 114,827 | 2,929,327 | |||
Alcan Inc. | 435,607 | 18,986,869 | |||
Barrick Gold Corp. | 1,000,224 | 27,292,021 | |||
Cameco Corp. | 408,556 | 15,168,936 | |||
Falconbridge Ltd. | 345,740 | 11,165,644 | |||
Glamis Gold Ltd.1 | 155,664 | 4,232,386 | |||
Goldcorp Inc. | 399,510 | 10,163,728 | |||
Inco Ltd. | 222,166 | 10,749,558 | |||
Ivanhoe Mines Ltd.1 | 255,158 | 2,040,457 | |||
Kinross Gold Corp.1 | 404,812 | 3,731,691 | |||
Meridian Gold Inc.1 | 118,571 | 2,990,454 | |||
Novelis Inc. | 88,285 | 1,611,388 | |||
Teck Cominco Ltd. Class B | 232,982 | 14,546,659 | |||
127,726,315 | |||||
OIL & GAS – 22.19% | |||||
Canadian Natural Resources Ltd. | 631,764 | 34,470,958 | |||
EnCana Corp. | 1,009,348 | 41,688,436 | |||
Husky Energy Inc. | 149,771 | 9,155,122 | |||
Imperial Oil Ltd. | 140,203 | 13,503,448 | |||
Nexen Inc. | 306,774 | 16,018,728 | |||
Petro-Canada | 609,517 | 27,884,753 | |||
Shell Canada Ltd. | 242,966 | 8,156,159 | |||
Suncor Energy Inc. | 537,786 | 40,170,315 | |||
Talisman Energy Inc. | 430,615 | 22,595,036 | |||
213,642,955 | |||||
PHARMACEUTICALS – 0.66% | |||||
Angiotech Pharmaceuticals Inc.1 | 100,683 | 1,558,089 | |||
Biovail Corp.1 | 158,091 | 3,973,288 | |||
QLT Inc.1 | 110,667 | 787,735 | |||
6,319,112 | |||||
PIPELINES – 3.09% | |||||
Enbridge Inc. | 389,004 | 12,238,098 | |||
TransCanada Corp. | 569,570 | 17,513,295 | |||
29,751,393 | |||||
REAL ESTATE – 0.69% | |||||
Brookfield Properties Corp. | 159,755 | 4,693,185 | |||
MI Developments Inc. Class A | 57,058 | 1,939,957 | |||
6,633,142 | |||||
RETAIL – 1.93% | |||||
Canadian Tire Corp. Class A | 93,195 | 5,446,168 | |||
Jean Coutu Group Inc. Class A | 166,827 | 1,946,889 | |||
RONA Inc.1 | 131,051 | 2,471,422 | |||
Shoppers Drug Mart Corp. | 223,414 | 8,709,210 | |||
18,573,689 | |||||
SEMICONDUCTORS – 0.49% | |||||
ATI Technologies Inc.1 | 293,729 | 4,669,412 | |||
4,669,412 | |||||
SOFTWARE – 0.52% | |||||
Cognos Inc.1 | 106,507 | 4,087,316 | |||
Open Text Corp.1 | 50,752 | 883,962 | |||
4,971,278 | |||||
TELECOMMUNICATIONS – 3.62% | |||||
Aliant Inc. | 48,256 | 1,164,895 | |||
BCE Inc. | 359,884 | 8,735,003 | |||
Nortel Networks Corp.1 | 5,098,824 | 14,741,536 | |||
TELUS Corp. | 72,800 | 2,860,308 | |||
TELUS Corp. NVS | 188,886 | 7,336,668 | |||
34,838,410 |
SCHEDULESOF INVESTMENTS | 23 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
TRANSPORTATION – 4.13% | |||||
Canadian National Railway Co. | 646,530 | $ | 30,225,753 | ||
Canadian Pacific Railway Ltd. | 187,222 | 9,575,395 | |||
39,801,148 | |||||
TOTAL COMMON STOCKS | 959,995,302 | ||||
SHORT-TERM INVESTMENTS – 0.04% | |||||
MONEY MARKET FUNDS – 0.04% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | |||||
4.51%2,3 | 394,916 | 394,916 | |||
394,916 | |||||
TOTAL SHORT-TERM INVESTMENTS | 394,916 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.74% | 960,390,218 | ||||
Other Assets, Less Liabilities – 0.26% | 2,501,107 | ||||
NET ASSETS – 100.00% | $ | 962,891,325 | |||
NVS – Non-Voting Shares
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
3 | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to the financial statements.
24 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 97.50% | |||||
ARGENTINA – 1.03% | |||||
Petrobras Energia Participaciones SA ADR1,2 | 1,728,413 | $ | 20,827,377 | ||
Tenaris SA ADR | 668,224 | 107,016,074 | |||
127,843,451 | |||||
BRAZIL – 9.39% | |||||
Aracruz Celulose SA ADR2 | 563,100 | 27,676,365 | |||
Banco Bradesco SA ADR2 | 5,598,496 | 232,113,638 | |||
Banco Itau Holding Financiera SA ADR2 | 5,782,512 | 188,972,492 | |||
Brasil Telecom Participacoes SA ADR | 677,715 | 26,939,171 | |||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR2 | 825,229 | 35,072,232 | |||
Companhia Vale do Rio Doce ADR | 3,715,936 | 172,530,908 | |||
Companhia Vale do Rio Doce Sponsored ADR | 4,440,976 | 180,747,723 | |||
Empresa Brasileira de Aeronautica SA ADR2 | 1,158,368 | 46,045,128 | |||
Petroleo Brasileiro SA ADR | 2,194,624 | 192,117,385 | |||
Tele Norte Leste Participacoes SA ADR2 | 2,799,277 | 51,870,603 | |||
Votorantim Celulose e Papel ADR2 | 781,856 | 11,540,195 | |||
1,165,625,840 | |||||
CHILE – 2.07% | |||||
Banco Santander Chile SA ADR | 1,679,961 | 79,781,348 | |||
Enersis SA Chile ADR | 5,121,920 | 62,845,958 | |||
LAN Airlines SA Sponsored ADR | 113,632 | 4,641,867 | |||
Sociedad Quimica y Minera de Chile SA ADR | 896,336 | 109,532,259 | |||
256,801,432 | |||||
CHINA – 5.41% | |||||
Aluminum Corp. of China Ltd. Class H | 16,960,000 | 17,378,281 | |||
Angang New Steel Co. Ltd. Class H2 | 15,264,000 | 12,394,321 | |||
AviChina Industry & Technology Co.1 | 10,176,000 | 800,057 | |||
Bank of Communications Co. Ltd. Class H1,2 | 39,962,000 | 24,208,000 | |||
Beijing Capital International Airport Co. Ltd. Class H | 13,572,000 | 7,740,535 | |||
China Construction Bank Class H1 | 170,448,000 | 79,636,793 | |||
China Eastern Airlines Corp. Ltd. Class H2 | 59,360,000 | 9,946,060 | |||
China Life Insurance Co. Ltd. Class H1 | 51,728,000 | 59,004,182 | |||
China Petroleum and Chemical Corp. Class H | 139,072,000 | 83,798,290 | |||
China Shipping Development Co. Ltd. Class H | 15,282,000 | 12,605,904 | |||
China Southern Airlines Co. Ltd.1,2 | 37,312,000 | 11,060,893 | |||
China Telecom Corp. Ltd. Class H | 94,976,000 | 34,887,720 | |||
Cofco International Ltd. | 5,094,000 | 2,724,713 | |||
Cosco Pacific Ltd. | 6,784,000 | 14,383,534 | |||
Datang International Power Generation Co. Ltd. Class H | 6,792,000 | 4,902,296 | |||
Guangshen Railway Co. Ltd. Class H | 54,342,363 | 20,311,891 | |||
Huadian Power International Corp. Ltd. | 28,866,000 | 7,813,034 | |||
Huaneng Power International Inc. Class H | 20,376,000 | 13,656,397 | |||
Jiangsu Expressway Co. Ltd. Class H | 5,094,000 | 3,315,616 | |||
Jiangxi Copper Co. Ltd. | 16,978,000 | 10,066,030 | |||
Maanshan Iron & Steel Co. Ltd. Class H2 | 18,656,000 | 6,552,377 | |||
PetroChina Co. Ltd. Class H | 145,856,000 | 142,873,516 | |||
Ping An Insurance (Group) Co. of China Ltd. Class H | 9,752,000 | 22,750,246 | |||
Qingling Motors Co. Ltd. | 25,440,474 | 4,229,887 | |||
Shanghai Forte Land Co. Class H | 5,088,000 | 2,196,877 |
SCHEDULESOF INVESTMENTS | 25 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Sinopec Shanghai Petrochemical Co. Ltd. Class H | 20,376,000 | $ | 11,555,413 | ||
Sinotrans Ltd. | 20,352,000 | 8,787,508 | |||
Travelsky Technology Ltd. Class H | 1,698,000 | 1,652,336 | |||
Tsingtao Brewery Co. Ltd. Class H2 | 3,396,000 | 4,464,591 | |||
Weichai Power Co. Ltd. Class H | 2,544,000 | 4,164,230 | |||
Yanzhou Coal Mining Co. Ltd. Class H | 20,352,800 | 16,657,573 | |||
Zhejiang Expressway Co. Ltd. Class H | 20,376,000 | 14,575,577 | |||
671,094,678 | |||||
CZECH REPUBLIC – 2.52% | |||||
CEZ AS | 4,591,472 | 160,234,829 | |||
Komercni Banka AS | 242,733 | 34,660,524 | |||
Philip Morris CR AS | 81,408 | 61,909,244 | |||
Unipetrol AS1 | 4,324,800 | 51,668,859 | |||
Zentiva NV | 87,344 | 4,305,667 | |||
312,779,123 | |||||
HONG KONG – 4.16% | |||||
Air China Ltd.1 | 25,440,000 | 9,262,952 | |||
Beijing Enterprises Holdings Ltd. | 3,396,000 | 6,762,543 | |||
Brilliance China Automotive Holdings Ltd. | 27,136,000 | 4,721,646 | |||
Chaoda Modern Agriculture | 1,696,000 | 1,021,930 | |||
China Everbright Pacific Ltd.1,2 | 18,884,000 | 10,039,956 | |||
China Mengniu Dairy Co. Ltd. | 3,392,000 | 3,541,235 | |||
China Merchants Holdings International Co. Ltd. | 6,784,000 | 19,323,774 | |||
China Mobile Ltd. | 37,312,000 | 182,264,286 | |||
China Overseas Land & Investment Ltd. | 27,136,000 | 14,864,442 | |||
China Pharmaceutical Group Ltd.1 | 3,392,000 | 629,553 | |||
China Resources Enterprises Ltd. | 11,886,000 | 26,196,645 | |||
China Resources Land Ltd. | 27,168,000 | 14,706,888 | |||
China Resources Power Holdings Co. | 5,088,000 | 3,410,078 | |||
China Travel International Investment Hong Kong Ltd. | 59,646,951 | 16,144,380 | |||
Citic Pacific Ltd. | 9,339,000 | 27,925,580 | |||
CNOOC Ltd. | 113,632,000 | 95,930,297 | |||
Denway Motors Ltd. | 32,224,000 | 12,875,230 | |||
Global Bio-Chem Technology Group Co. Ltd. | 20,352,000 | 11,541,802 | |||
GOME Electrical Appliances Holdings Ltd. | 7,632,000 | 7,230,021 | |||
Guangdong Investment Ltd. | 11,876,110 | 5,433,960 | |||
Guangzhou Investment Co. Ltd. | 28,832,000 | 4,979,588 | |||
Lenovo Group Ltd. | 35,616,000 | 14,689,566 | |||
Shanghai Industrial Holdings Ltd. | 3,396,000 | 7,309,674 | |||
Shenzhen Investment Ltd. | 8,490,000 | 1,455,369 | |||
TCL International Holdings Ltd. | 10,176,000 | 1,495,188 | |||
TPV Technology Ltd. | 11,872,000 | 13,082,895 | |||
516,839,478 | |||||
HUNGARY – 2.25% | |||||
BorsodChem Rt | 717,825 | 8,488,097 | |||
Gedeon Richter Rt | 404,496 | 82,703,138 | |||
Magyar Telekom Rt | 3,019,728 | 13,870,448 | |||
Mol Magyar Olaj-es Gazipari Rt | 602,080 | 62,401,483 | |||
OTP Bank Rt | 2,969,696 | 111,307,595 | |||
278,770,761 | |||||
INDIA – 4.98% | |||||
HDFC Bank Ltd. ADR | 2,149,680 | 114,341,479 | |||
ICICI Bank Ltd. ADR | 3,159,940 | 97,041,757 | |||
Infosys Technologies Ltd. ADR | 1,707,219 | 120,871,105 | |||
Mahanagar Telephone Nigam Ltd. ADR2 | 5,081,391 | 34,197,761 | |||
Satyam Computer Services Ltd. ADR | 2,488,060 | 102,383,669 | |||
Videsh Sanchar Nigam Ltd. ADR2 | 5,082,064 | 82,126,154 | |||
Wipro Ltd. ADR2 | 4,828,872 | 67,073,032 | |||
618,034,957 | |||||
INDONESIA – 2.32% | |||||
PT Aneka Tambang Tbk | 58,936,455 | 25,833,840 | |||
PT Astra International Inc. Tbk | 23,350,230 | 24,920,474 | |||
PT Bank Central Asia Tbk | 42,450,000 | 16,642,527 | |||
PT Bank Danamon Indonesia Tbk | 13,154,987 | 6,124,429 | |||
PT Bank Mandiri Tbk | 44,572,500 | 7,863,594 | |||
PT Bank Pan Indonesia Tbk | 172,630,918 | 8,177,996 |
26 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2006
Security | Shares | Value | |||
PT Bank Rakyat Indonesia Tbk | 39,039,061 | $ | 13,817,256 | ||
PT Bumi Resources Tbk | 123,384,000 | 11,286,966 | |||
PT Indosat Tbk | 18,232,000 | 10,423,959 | |||
PT Kalbe Farma Tbk | 257,893,156 | 38,195,990 | |||
PT Matahari Putra Prima Tbk | 74,296,194 | 6,391,941 | |||
PT Perusahaan Gas Negara Tbk | 23,758,500 | 24,968,094 | |||
PT Ramayana Lestari Sentosa Tbk | 84,909,870 | 6,750,255 | |||
PT Semen Gresik (Persero) Tbk | 440,000 | 1,114,076 | |||
PT Telekomunikasi Indonesia Tbk | 115,752,186 | 78,155,574 | |||
PT Tempo Scan Pacific Tbk | 899,376 | 666,023 | |||
PT United Tractors Tbk | 16,599,771 | 7,185,853 | |||
288,518,847 | |||||
ISRAEL – 4.39% | |||||
Alvarion Ltd.1 | 932,800 | 8,712,352 | |||
AudioCodes Ltd.1,2 | 727,594 | 8,352,779 | |||
Bank Hapoalim Ltd. | 9,849,687 | 45,085,230 | |||
Bank Leumi Le-Israel | 12,895,691 | 46,651,433 | |||
Check Point Software Technologies Ltd.1 | 1,372,912 | 29,188,109 | |||
Clal Industries and Investments Ltd. | 462,160 | 2,142,994 | |||
Clal Insurance Co. Ltd. | 83,952 | 1,481,007 | |||
ECI Telecom Ltd.1 | 416,368 | 3,630,729 | |||
Elbit Systems Ltd. | 649,568 | 15,025,385 | |||
Elite Industries Ltd. | 190,800 | 1,702,857 | |||
Given Imaging Ltd.1 | 168,752 | 3,888,046 | |||
Israel Chemicals Ltd. | 6,935,792 | 26,079,788 | |||
Israel Corp. Ltd. (The) | 9,328 | 3,138,281 | |||
Israel Discount Bank Class A1 | 14,783,233 | 28,001,395 | |||
Koor Industries Ltd.1 | 274,809 | 12,871,301 | |||
Makhteshim-Agan Industries Ltd. | 2,981,692 | 14,841,044 | |||
Mizrahi Tefahot Bank Ltd.1 | 4,640,428 | 26,039,919 | |||
M-Systems Flash Disk Pioneers Ltd.1 | 669,072 | 18,064,944 | |||
NICE Systems Ltd.1 | 84,900 | 4,341,431 | |||
Orbotech Ltd.1 | 652,112 | 15,539,829 | |||
Supersol Ltd. | 1,666,463 | 4,503,715 | |||
Syneron Medical Ltd.1,2 | 1,017,600 | 27,882,240 | |||
Teva Pharmaceutical Industries Ltd. | 4,703,008 | 198,158,341 | |||
545,323,149 | |||||
MEXICO – 7.55% | |||||
Alfa SA de CV Class A | 3,646,400 | 19,454,067 | |||
America Movil SA de CV Series L2 | 148,908,800 | 258,836,880 | |||
Cemex SA de CV Series CPO | 19,843,200 | 123,131,259 | |||
Consorcio Ara SA de CV2 | 5,943,000 | 25,382,454 | |||
Controladora Comercial Mexicana SA de CV2 | 9,497,600 | 17,217,263 | |||
Corporacion GEO SA de CV Series B1,2 | 4,324,800 | 17,007,350 | |||
Fomento Economico Mexicano SA de CV Class UBD | 5,178,900 | 44,748,009 | |||
Grupo Carso SA de CV Series A1 | 764,841 | 1,936,427 | |||
Grupo Financiero Banorte SA de CV Series O | 10,192,456 | 24,957,457 | |||
Grupo Mexico SA de CV Series B | 11,461,500 | 29,412,767 | |||
Grupo Modelo SA de CV Series C | 11,136,098 | 38,341,410 | |||
Grupo Televisa SA Series CPO | 17,553,600 | 69,919,349 | |||
Industrias Penoles SA de CV Series CP2 | 765,088 | 4,884,326 | |||
Kimberly-Clark de Mexico SA de CV Class A | 6,275,200 | 21,485,418 | |||
Telefonos de Mexico SA de CV Series L2 | 120,924,894 | 136,083,068 | |||
TV Azteca SA de CV Series CPO | 10,600,000 | 6,719,413 | |||
Wal-Mart de Mexico SA de CV Series V | 33,920,000 | 97,229,798 | |||
936,746,715 | |||||
PERU – 0.24% | |||||
Companhia de Minas Buenaventura SA ADR | 1,143,180 | 29,974,180 | |||
29,974,180 | |||||
PHILIPPINE ISLANDS – 1.40% | |||||
Ayala Corp. | 2,569,440 | 16,164,692 | |||
Ayala Land Inc. Class B | 31,376,000 | 6,832,752 | |||
Bank of the Philippine Islands | 16,790,400 | 19,176,028 | |||
Equitable PCI Bank | 10,091,200 | 12,599,349 |
SCHEDULESOF INVESTMENTS | 27 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Filinvest Land Inc.1 | 263,940,500 | $ | 6,233,206 | ||
Globe Telecom Inc. | 491,840 | 8,378,227 | |||
Jollibee Foods Corp. | 33,326,400 | 23,223,972 | |||
Manila Electric Co. Class B1 | 9,412,800 | 3,370,825 | |||
Megaworld Corp.1 | 173,973,600 | 4,647,378 | |||
Metropolitan Bank & Trust Co. | 40 | 27 | |||
Petron Corp. | 170,448,000 | 15,012,358 | |||
Philippine Long Distance Telephone Co. | 1,060,000 | 36,626,016 | |||
SM Investments Corp. | 1,619,680 | 7,054,356 | |||
SM Prime Holdings Inc. | 94,976,000 | 14,707,859 | |||
174,027,045 | |||||
RUSSIA - 5.77% | |||||
JSC MMC Norilsk Nickel ADR | 529,152 | 47,094,528 | |||
LUKOIL ADR | 4,177,248 | 333,762,115 | |||
Mobile Telesystems OJSC ADR | 763,200 | 27,528,624 | |||
Polyus Gold Co. ADR1,3 | 486,720 | 5,110,560 | |||
Rostelecom ADR2 | 616,601 | 12,399,846 | |||
Surgutneftegaz ADR2 | 3,124,037 | 227,742,297 | |||
Tatneft ADR2 | 223,024 | 25,368,980 | |||
Vimpel-Communications Sponsored ADR1 | 848,000 | 37,312,000 | |||
716,318,950 | |||||
SOUTH AFRICA – 11.83% | |||||
African Bank Investments Ltd. | 8,254,527 | 38,815,712 | |||
Alexander Forbes Ltd.1 | 8,202,844 | 20,875,253 | |||
Anglo Platinum Ltd. | 461,432 | 36,836,773 | |||
AngloGold Ashanti Ltd. | 934,538 | 48,173,186 | |||
AVI Ltd. | 3,419,536 | 9,278,767 | |||
Barloworld Ltd. | 1,791,180 | 34,623,044 | |||
Bidvest Group Ltd. | 2,115,954 | 35,670,335 | |||
Consol Ltd. | 3,419,536 | 7,427,448 | |||
Edgars Consolidated Stores Ltd. | 3,587,040 | 19,611,924 | |||
FirstRand Ltd. | 22,411,804 | 67,933,822 | |||
Foschini Ltd. | 6,341,344 | 58,692,830 | |||
Gold Fields Ltd. | 2,794,206 | 61,144,841 | |||
Impala Platinum Holdings Ltd. | 401,153 | 68,275,828 | |||
Imperial Holdings Ltd.1 | 2,039,073 | 51,230,914 | |||
Investec Ltd. | 743,725 | 37,311,325 | |||
JD Group Ltd. | 2,411,800 | 35,962,472 | |||
Liberty Group Ltd. | 1,336,708 | 18,330,510 | |||
Metropolitan Holdings Ltd. | 7,512,599 | 16,232,596 | |||
Mittal Steel South Africa Ltd. | 3,045,367 | 30,067,399 | |||
MTN Group Ltd. | 8,849,776 | 86,069,872 | |||
Nampak Ltd. | 5,872,673 | 15,706,789 | |||
Naspers Ltd. | 3,321,717 | 65,984,750 | |||
Nedbank Group Ltd. | 2,672,897 | 51,774,720 | |||
Network Healthcare Holdings Ltd.1 | 14,672,240 | 19,145,201 | |||
Pick’n Pay Stores Ltd. | 3,887,246 | 19,092,037 | |||
Reunert Ltd. | 1,345,776 | 13,895,681 | |||
Sanlam Ltd. | 20,804,944 | 54,126,410 | |||
Sappi Ltd. | 347,326 | 4,396,995 | |||
Sasol Ltd. | 4,743,712 | 162,243,908 | |||
Shoprite Holdings Ltd. | 9,883,441 | 32,073,022 | |||
SPAR Group Ltd. (The) | 1,363,708 | 8,178,822 | |||
Standard Bank Group Ltd. | 7,555,909 | 96,769,035 | |||
Steinhoff International Holdings Ltd. | 1,425,488 | 4,679,034 | |||
Telkom South Africa Ltd. | 1,027,079 | 27,136,828 | |||
Tiger Brands Ltd. | 1,309,036 | 32,464,644 | |||
Tongaat-Hulett Group Ltd. | 1,234,029 | 18,402,669 | |||
Truworths International Ltd. | 7,578,579 | 32,062,392 | |||
Woolworths Holdings Ltd. | 11,016,532 | 28,089,322 | |||
1,468,787,110 | |||||
SOUTH KOREA – 17.29% | |||||
Kookmin Bank ADR1 | 5,430,592 | 411,367,344 | |||
Korea Electric Power Corp. ADR2 | 12,576,635 | 279,327,063 | |||
KT Corp. ADR | 5,999,600 | 122,511,832 | |||
LG.Philips LCD Co. Ltd. ADR1,2 | 4,999,808 | 110,895,741 | |||
POSCO ADR | 5,452,640 | 318,652,282 | |||
Samsung Electronics Co. Ltd. GDR4 | 2,232,784 | 789,847,340 | |||
SK Telecom Co. Ltd. ADR2 | 4,744,694 | 114,584,360 | |||
2,147,185,962 | |||||
TAIWAN – 10.18% | |||||
AU Optronics Corp. ADR2 | 13,198,625 | 209,990,124 | |||
Chunghwa Telecom Co. Ltd. ADR | 9,353,440 | 176,780,016 | |||
Siliconware Precision Industries Co. ADR2 | 36,023,896 | 230,192,695 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 42,599,280 | 414,490,994 | |||
United Microelectronics Corp. ADR2 | 73,863,344 | 232,669,533 | |||
1,264,123,362 |
28 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2006
Security | Shares | Value | ||||
THAILAND – 2.70% | ||||||
Advanced Info Service PCL | 6,537,300 | $ | 15,776,466 | |||
Aromatics Thailand PCL | 8,564,800 | 6,124,276 | ||||
Bangkok Bank PCL | 7,978,400 | 25,876,112 | ||||
Bangkok Expressway PCL | 15,791,400 | 8,952,680 | ||||
Banpu PCL | 2,547,000 | 9,366,362 | ||||
Charoen Pokphand Foods PCL | 28,000 | 3,861 | ||||
Electricity Generating PCL | 3,478,800 | 7,240,467 | ||||
Kasikornbank PCL | 12,140,700 | 21,393,031 | ||||
Kiatnakin Bank PCL | 6,363,100 | 6,093,678 | ||||
Krung Thai Bank PCL | 14,514,300 | 4,596,183 | ||||
National Finance PCL | 15,276,500 | 5,812,857 | ||||
PTT Chemical PCL1 | 5,182,468 | 11,249,548 | ||||
PTT Exploration & Production PCL | 2,716,800 | 36,077,839 | ||||
PTT PCL | 11,532,800 | 73,629,910 | ||||
Ratchaburi Electricity Generating Holding PCL | 27,995,800 | 28,419,047 | ||||
Shin Corp. PCL | 10,018,200 | 12,408,262 | ||||
Siam Cement PCL | 2,547,000 | 17,301,752 | ||||
Siam City Cement PCL | 509,400 | 4,188,846 | ||||
Siam Makro PCL | 11,461,500 | 20,488,917 | ||||
Thai Airways International PCL | 2,374,400 | 2,577,047 | ||||
Thai Union Frozen Products PCL | 10,188,000 | 7,935,390 | ||||
Tisco Bank PCL | 6,532,400 | 4,712,710 | ||||
United Broadcasting Corp. PCL1 | 7,213,300 | 4,835,516 | ||||
335,060,757 | ||||||
TURKEY – 2.02% | ||||||
Adana Cimento TAS Class A | 2,819,784 | 26,385,196 | ||||
Akbank TAS | 5,414,789 | 55,198,305 | ||||
Akcansa Cimento AS | 411,476 | 3,380,708 | ||||
Arcelik AS | 801,492 | 7,499,697 | ||||
Dogan Yayin Holding AS1 | 2,299,230 | 11,019,512 | ||||
Eregli Demir ve Celik Fabrikalari TAS | 1,482,828 | 10,039,687 | ||||
Hurriyet Gazetecilik ve Matbaacilik AS | 1,833,709 | 7,742,172 | ||||
Ihlas Holding | 8,610,592 | 5,502,394 | ||||
Tofas Turk Otomobil Fabrik | 5,945,392 | 19,810,435 | ||||
Trakya Cam Sanayii AS | 1,002,448 | 4,384,995 | ||||
Tupras-Turkiye Petrol Rafinerileri AS | 731,078 | 14,043,149 | ||||
Security | Shares or Principal | Value | ||||
Turk Hava Yollari Anonim Ortakligi1 | 2,839,155 | $ | 18,466,927 | |||
Turk Sise ve Cam Fabrikalari AS | 2,755,152 | 13,099,810 | ||||
Turkiye Garanti Bankasi AS1 | 6,080,170 | 27,521,500 | ||||
Vestel Elektronik Sanayi ve Ticaret AS1 | 1,515,629 | 6,629,796 | ||||
Yapi ve Kredi Bankasi AS1 | 3,449,393 | 20,205,649 | ||||
250,929,932 | ||||||
TOTAL COMMON STOCKS | 12,104,785,729 | |||||
PREFERRED STOCKS – 1.69% | ||||||
BRAZIL – 1.69% | ||||||
Petroleo Brasileiro SA ADR | 2,620,320 | 209,546,990 | ||||
209,546,990 | ||||||
TOTAL PREFERRED STOCKS (Cost: $120,130,211) | 209,546,990 | |||||
EXCHANGE-TRADED FUNDS – 0.56% | ||||||
iShares MSCI Malaysia Index Fund2,5 | 1,214,359 | 8,901,252 | ||||
iShares MSCI South Korea Index Fund2,5 | 564,961 | 26,219,840 | ||||
iShares MSCI Taiwan Index Fund 2,5 | 2,713,600 | 34,299,904 | ||||
TOTAL EXCHANGE-TRADED FUNDS | 69,420,996 | |||||
SHORT-TERM INVESTMENTS – 6.24% | ||||||
CERTIFICATES OF DEPOSIT6 – 0.08% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 3,562,993 | 3,562,993 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 5,700,788 | 5,700,788 | ||||
9,263,781 | ||||||
COMMERCIAL PAPER6 – 0.21% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 3,562,993 | 3,533,381 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 2,137,796 | 2,124,985 |
SCHEDULESOF INVESTMENTS | 29 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | $ | 3,562,993 | $ | 3,533,582 | ||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 2,045,158 | 2,033,623 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 3,562,993 | 3,530,258 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 7,482,284 | 7,452,887 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 4,275,591 | 4,257,805 | ||||
26,466,521 | ||||||
MEDIUM-TERM NOTES6 – 0.19% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 2,209,055 | 2,208,978 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 4,275,591 | 4,275,516 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 7,125,985 | 7,145,402 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 8,907,481 | 8,907,746 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 1,425,197 | 1,406,587 | ||||
23,944,229 | ||||||
MONEY MARKET FUNDS – 0.12% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%5,7 | 14,485,808 | 14,485,808 | ||||
14,485,808 | ||||||
REPURCHASE AGREEMENTS6 – 1.50% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $10,690,350 (collateralized by non-U.S. Government debt securities, value $11,777,093, 0.00% to 9.40%, 11/15/15 to 6/12/47).8 | $ | 10,688,978 | 10,688,978 | |||
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $35,634,448 (collateralized by U.S. Government obligations, value $36,414,252, 3.69% to 10.00%, 5/1/09 to 1/1/36). | $ | 35,629,925 | $ | 35,629,925 | ||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $17,817,244 (collateralized by non-U.S. Government debt securities, value $18,735,737, 1.01%, 9/19/35). 8 | 17,814,963 | 17,814,963 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $35,634,438 (collateralized by U.S. Government obligations, value $36,400,860, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 35,629,925 | 35,629,925 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $35,634,587 (collateralized by non-U.S. Government debt securities, value $37,471,473, 0.00% to 10.00%, 8/15/07 to 2/1/16).8 | 35,629,925 | 35,629,925 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $8,552,258 (collateralized by U.S. Government obligations, value $8,736,386, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 8,551,182 | 8,551,182 |
30 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $7,126,907 (collateralized by non-U.S. Government debt securities, value $7,351,804, 0.00% to 7.88%, 5/15/08 to 1/15/16).8 | $ | 7,125,985 | $ | 7,125,985 | ||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $35,634,488 (collateralized by non-U.S. Government debt securities, value $37,414,435, 0.00% to 7.16%, 3/1/06 to 3/25/35).8 | 35,629,925 | 35,629,925 | ||||
186,700,808 | ||||||
TIME DEPOSITS6 – 0.42% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 14,251,970 | 14,251,970 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 24,940,948 | 24,940,948 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 12,822,996 | 12,822,996 | ||||
52,015,914 | ||||||
VARIABLE & FLOATING RATE NOTES6 – 3.72% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/074 | 20,024,018 | 20,027,200 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 16,746,065 | 16,745,965 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 2,850,394 | 2,850,394 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 2,137,796 | 2,139,508 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/064 | 23,159,452 | 23,165,437 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/074 | 4,631,890 | 4,631,890 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/074 | 7,125,985 | 7,125,985 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/064 | 9,192,521 | 9,192,337 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/074 | 7,125,985 | 7,125,985 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/064 | 19,168,900 | 19,168,642 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/064 | 1,781,496 | 1,781,496 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 7,125,985 | 7,125,985 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/064 | 1,781,496 | 1,781,439 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/064 | 7,125,985 | 7,125,985 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/074 | 14,251,970 | 14,251,970 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/064 | 1,425,197 | 1,425,151 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 3,206,693 | 3,209,107 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 1,781,496 | 1,781,496 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 7,125,985 | 7,125,985 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/074 | 7,125,985 | 7,125,985 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/064 | 19,596,459 | 19,596,459 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 2,494,095 | 2,494,451 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/064 | 6,413,387 | 6,413,223 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/074 | 7,466,037 | 7,466,038 |
SCHEDULESOF INVESTMENTS | 31 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
Links Finance LLC | |||||||
4.56%, 03/15/064 | $ | 5,700,788 | $ | 5,700,816 | |||
Marshall & Ilsley Bank | |||||||
4.55%, 02/15/07 | 3,919,292 | 3,919,292 | |||||
Metropolitan Life Global Funding I | |||||||
4.56% - 4.96%, 08/28/06 - 03/06/074 | 21,306,695 | 21,315,465 | |||||
Mound Financing PLC | |||||||
4.53%, 11/08/064 | 14,251,970 | 14,251,970 | |||||
Natexis Banques Populaires | |||||||
4.55%, 03/15/074 | 5,344,489 | 5,344,489 | |||||
Nationwide Building Society | |||||||
4.58% - 4.60%, 01/05/07 - 01/26/074 | 19,240,160 | 19,240,825 | |||||
Nordea Bank AB | |||||||
4.55%, 02/09/074 | 12,470,474 | 12,470,474 | |||||
Northern Rock PLC | |||||||
4.61%, 02/02/074 | 8,551,182 | 8,551,450 | |||||
Permanent Financing PLC | |||||||
4.53%, 03/10/06 - 06/12/064 | 19,382,679 | 19,382,682 | |||||
Pfizer Investment Capital PLC | |||||||
4.53%, 02/15/074 | 17,814,963 | 17,814,963 | |||||
Principal Life Income Funding Trusts | |||||||
4.70%, 05/10/06 | 5,344,489 | 5,344,525 | |||||
Sedna Finance Inc. | |||||||
4.54%, 09/20/064 | 2,137,796 | 2,137,796 | |||||
Sigma Finance Inc. | |||||||
4.53% - 4.55%, 03/20/06 - 08/15/064 | 7,909,843 | 7,909,698 | |||||
Skandinaviska Enskilda Bank NY | |||||||
4.56%, 03/19/074 | 7,125,985 | 7,125,985 | |||||
Societe Generale | |||||||
4.54%, 03/02/074 | 4,988,190 | 4,988,190 | |||||
Strips III LLC | |||||||
4.62%, 07/24/064,9 | 1,838,475 | 1,838,475 | |||||
SunTrust Bank | |||||||
4.62%, 04/28/06 | 10,688,978 | 10,688,978 | |||||
Tango Finance Corp. | |||||||
4.53% - 4.54%, 05/25/06 - 09/27/064 | 15,890,947 | 15,890,183 | |||||
Toyota Motor Credit Corp. | |||||||
4.57%, 04/10/06 | 3,206,693 | 3,206,688 | |||||
UniCredito Italiano SpA | |||||||
4.43%, 06/14/06 | 9,263,781 | 9,262,836 | |||||
Union Hamilton Special Funding LLC | |||||||
4.52%, 03/28/064 | 7,125,985 | 7,125,985 | |||||
US Bank N.A. | |||||||
4.54%, 09/29/06 | 3,206,693 | 3,206,205 | |||||
Variable Funding Capital Corp. | |||||||
4.52%, 03/09/06 - 03/13/06 | 10,688,978 | 10,688,978 | |||||
Wachovia Asset Securitization Inc. | |||||||
4.57%, 03/26/064 | 13,599,927 | 13,599,927 | |||||
Wells Fargo & Co. | |||||||
4.56%, 03/15/074 | 3,562,993 | 3,563,263 | |||||
WhistleJacket Capital Ltd. | |||||||
4.53% - 4.56%, 06/22/06 - 07/28/064 | 3,562,993 | 3,562,807 | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/064 | 7,482,284 | 7,482,294 | |||||
Winston Funding Ltd. | |||||||
4.68%, 04/23/064 | 5,087,953 | 5,087,953 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 10,688,978 | 10,688,965 | |||||
462,270,270 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 775,147,331 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 105.99% | 13,158,901,046 | ||||||
Other Assets, Less Liabilities – (5.99)% | (743,184,198 | ) | |||||
NET ASSETS – 100.00% | $ | 12,415,716,848 | |||||
ADR – American Depositary Receipts
GDR – Global Depositary Receipts
1 | Non-income earning security. |
2 | All or a portion of this security represents a security on loan. See Note 5. |
3 | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
32 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2006
4 | This security or a portion of these securities 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 | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
7 | The rate quoted is the annualized seven-day yield of the fund at period end. |
8 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
9 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 33 |
Schedule of Investments (Unaudited)
iSHARES® MSCI HONGKONG INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.88% | |||||
AIRLINES – 1.12% | |||||
Cathay Pacific Airways Ltd. | 4,812,000 | $ | 8,962,049 | ||
8,962,049 | |||||
APPAREL – 0.93% | |||||
Yue Yuen Industrial Holdings Ltd. | 2,406,000 | 7,458,037 | |||
7,458,037 | |||||
BANKS – 13.51% | |||||
Bank of East Asia Ltd. | 6,416,100 | 22,038,507 | |||
BOC Hong Kong Holdings Ltd. | 16,842,000 | 33,972,057 | |||
Hang Seng Bank Ltd. | 3,448,600 | 46,181,944 | |||
Wing Hang Bank Ltd. | 802,000 | 6,186,605 | |||
108,379,113 | |||||
CHEMICALS – 0.95% | |||||
Kingboard Chemical Holdings Co. Ltd. | 2,406,000 | 7,597,585 | |||
7,597,585 | |||||
DISTRIBUTION & WHOLESALE – 6.26% | |||||
Esprit Holdings Ltd. | 4,411,000 | 33,912,620 | |||
Li & Fung Ltd. | 8,020,000 | 16,280,538 | |||
50,193,158 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.08% | |||||
Hong Kong Exchanges & Clearing Ltd. | 4,812,000 | 24,715,408 | |||
24,715,408 | |||||
ELECTRIC – 9.62% | |||||
CLP Holdings Ltd. | 8,292,700 | 47,509,620 | |||
Hongkong Electric Holdings Ltd. | 6,416,000 | 29,646,085 | |||
77,155,705 | |||||
ELECTRICAL COMPONENTS& EQUIPMENT – 0.83% | |||||
Johnson Electric Holdings Ltd. | 6,817,000 | 6,677,605 | |||
6,677,605 | |||||
ENGINEERING & CONSTRUCTION – 2.87% | |||||
Cheung Kong Infrastructure Holdings Ltd. | 1,604,000 | 5,054,720 | |||
New World Development Co. Ltd. | 11,228,800 | 17,946,050 | |||
23,000,770 | |||||
GAS – 5.04% | |||||
Hong Kong & China Gas Co. Ltd. | 16,842,663 | 40,377,325 | |||
40,377,325 | |||||
HAND & MACHINE TOOLS – 1.04% | |||||
Techtronic Industries Co. Ltd. | 4,812,000 | 8,341,838 | |||
8,341,838 | |||||
HOLDING COMPANIES - DIVERSIFIED – 18.99% | |||||
Hutchison Whampoa Ltd. | 9,624,800 | 91,798,857 | |||
Swire Pacific Ltd. Class A | 4,133,500 | 39,663,998 | |||
Wharf Holdings Ltd. (The) | 5,614,000 | 20,839,089 | |||
152,301,944 | |||||
LODGING – 0.96% | |||||
Shangri-La Asia Ltd. | 4,812,000 | 7,721,627 | |||
7,721,627 | |||||
MEDIA – 1.27% | |||||
SCMP Group Ltd. | 3,208,000 | 1,188,738 | |||
Television Broadcasts Ltd. | 1,604,000 | 9,024,070 | |||
10,212,808 | |||||
REAL ESTATE – 24.15% | |||||
Cheung Kong Holdings Ltd. | 6,506,000 | 68,677,076 | |||
Hang Lung Properties Ltd. | 8,822,000 | 15,918,749 | |||
Henderson Land Development Co. Ltd. | 3,208,000 | 17,179,844 | |||
Hopewell Holdings Ltd. | 2,866,000 | 8,034,323 | |||
Hysan Development Co. Ltd. | 3,208,000 | 7,856,006 | |||
Kerry Properties Ltd. | 2,406,000 | 7,752,637 | |||
Sino Land Co. Ltd. | 6,416,000 | 9,633,944 | |||
Sun Hung Kai Properties Ltd. | 5,614,000 | 58,609,939 | |||
193,662,518 | |||||
REITS – 2.63% | |||||
Link REIT (The)1 | 9,624,000 | 21,087,174 | |||
21,087,174 | |||||
RETAIL – 0.43% | |||||
Giordano International Ltd. | 6,416,000 | 3,411,160 | |||
3,411,160 | |||||
SEMICONDUCTORS – 1.03% | |||||
ASM Pacific Technology Ltd. | 802,000 | 4,481,024 | |||
Solomon Systech International Ltd. | 8,020,000 | 3,772,950 | |||
8,253,974 | |||||
TELECOMMUNICATIONS – 2.78% | |||||
Hutchinson Telecommunications International Ltd.1 | 6,416,000 | 9,882,028 | |||
PCCW Ltd. | 16,060,576 | 11,074,618 | |||
SmarTone Telecommunications Holdings Ltd. | 1,205,000 | 1,366,733 | |||
22,323,379 |
34 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2006
Security | Shares | Value | |||
TEXTILES – 0.31% | |||||
Texwinca Holdings Ltd. | 3,208,000 | $ | 2,522,191 | ||
2,522,191 | |||||
TRANSPORTATION – 2.08% | |||||
MTR Corp. Ltd. | 6,015,083 | 13,683,594 | |||
Orient Overseas International Ltd. | 802,200 | 2,957,076 | |||
16,640,670 | |||||
TOTAL COMMON STOCKS | 800,996,038 | ||||
SHORT-TERM INVESTMENTS – 0.09% | |||||
MONEY MARKET FUNDS – 0.09% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | |||||
4.51%2,3 | 696,030 | 696,030 | |||
696,030 | |||||
TOTAL SHORT-TERM INVESTMENTS | 696,030 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.97% | 801,692,068 | ||||
Other Assets, Less Liabilities – 0.03% | 225,268 | ||||
NET ASSETS – 100.00% | $ | 801,917,336 | |||
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
3 | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 35 |
Schedule of Investments (Unaudited)
iSHARES® MSCI MALAYSIA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.88% | |||||
AGRICULTURE – 10.04% | |||||
British American Tobacco (Malaysia) Bhd | 1,005,200 | $ | 11,567,241 | ||
Golden Hope Plantations Bhd | 3,302,800 | 3,787,329 | |||
Highlands & Lowlands Bhd | 1,148,800 | 1,304,963 | |||
IOI Corp. Bhd | 4,882,400 | 18,136,506 | |||
Kuala Lumpur Kepong Bhd | 1,938,600 | 4,853,023 | |||
39,649,062 | |||||
AIRLINES – 1.02% | |||||
AirAsia Bhd1 | 5,385,000 | 2,478,695 | |||
Malaysian Airline System Bhd | 1,938,600 | 1,565,491 | |||
4,044,186 | |||||
AUTO MANUFACTURERS – 1.63% | |||||
DRB-Hicom Bhd | 3,015,600 | 1,120,196 | |||
Oriental Holdings Bhd | 1,220,600 | 1,353,667 | |||
Proton Holdings Bhd | 1,938,600 | 2,896,159 | |||
Tan Chong Motor Holdings Bhd | 2,584,800 | 1,050,619 | |||
6,420,641 | |||||
AUTO PARTS & EQUIPMENT – 0.88% | |||||
UMW Holdings Bhd | 1,795,000 | 3,478,870 | |||
3,478,870 | |||||
BANKS – 23.87% | |||||
AMMB Holdings Bhd | 9,908,400 | 7,094,575 | |||
Bumiputra-Commerce Holdings Bhd | 16,381,032 | 25,574,693 | |||
Hong Leong Bank Bhd | 3,661,800 | 5,026,966 | |||
Malayan Banking Bhd | 13,067,600 | 39,044,511 | |||
Public Bank Bhd | 7,898,000 | 14,244,038 | |||
RHB Capital Bhd | 4,954,200 | 3,280,574 | |||
94,265,357 | |||||
BEVERAGES – 0.38% | |||||
Guinness Anchor Bhd | 1,005,200 | 1,501,712 | |||
1,501,712 | |||||
BUILDING MATERIALS – 2.14% | |||||
Lafarge Malayan Cement Bhd | 8,831,400 | 1,771,034 | |||
OYL Industries Bhd | 5,385,030 | 6,146,037 | |||
WTK Holdings Bhd | 502,600 | 533,040 | |||
8,450,111 | |||||
CHEMICALS – 0.49% | |||||
Malaysian Oxygen Bhd | 574,400 | 1,932,705 | |||
1,932,705 | |||||
COMMERCIAL SERVICES – 1.77% | |||||
PLUS Expressways Bhd | 9,693,000 | 6,992,528 | |||
6,992,528 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.61% | |||||
Bursa Malaysia Bhd | 2,369,400 | 2,895,579 | |||
Hong Leong Credit Bhd | 1,579,600 | 1,777,316 | |||
OSK Holdings Bhd | 2,297,633 | 816,386 | |||
TA Enterprise Bhd | 5,241,400 | 888,851 | |||
6,378,132 | |||||
ELECTRIC – 7.21% | |||||
Malakoff Bhd | 4,164,400 | 9,864,528 | |||
Tenaga Nasional Bhd | 7,808,250 | 18,601,080 | |||
28,465,608 | |||||
ELECTRONICS – 0.16% | |||||
Hong Leong Industries Bhd | 718,000 | 614,600 | |||
614,600 | |||||
ENGINEERING & CONSTRUCTION – 5.54% | |||||
Gamuda Bhd | 4,379,800 | 4,173,484 | |||
IJM Corp. Bhd | 2,584,800 | 3,186,645 | |||
Malaysia Airports Holdings Bhd | 2,154,000 | 1,188,614 | |||
Malaysian Resources Corp. Bhd1 | 4,451,600 | 683,018 | |||
MMC Corp. Bhd | 2,297,600 | 1,348,255 | |||
Road Builder (Malaysia) Holdings Bhd | 2,943,800 | 1,513,502 | |||
Transmile Group Bhd | 933,400 | 3,140,646 | |||
YTL Corp. Bhd | 4,738,888 | 6,633,168 | |||
21,867,332 | |||||
ENTERTAINMENT – 7.37% | |||||
Berjaya Sports Toto Bhd | 5,241,400 | 6,433,589 | |||
Magnum Corp. Bhd | 6,605,600 | 3,325,026 | |||
Resorts World Bhd | 3,805,400 | 13,316,339 | |||
Tanjong PLC | 1,579,600 | 6,037,771 | |||
29,112,725 | |||||
ENVIRONMENTAL CONTROL – 0.19% | |||||
Puncak Niaga Holding Bhd | 1,077,000 | 762,452 | |||
762,452 |
36 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MALAYSIA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
FOOD – 2.00% | |||||
Nestle (Malaysia) Bhd | 574,400 | $ | 3,834,487 | ||
PPB Group Bhd | 3,661,866 | 4,061,074 | |||
7,895,561 | |||||
GAS – 1.89% | |||||
Petronas Gas Bhd | 3,087,400 | 7,479,569 | |||
7,479,569 | |||||
HOLDING COMPANIES—DIVERSIFIED – 4.48% | |||||
Mulpha International Bhd1 | 5,959,400 | 1,130,922 | |||
Multi-Purpose Holdings Bhd1 | 4,523,400 | 974,083 | |||
Sime Darby Bhd | 9,334,000 | 15,577,604 | |||
17,682,609 | |||||
INSURANCE – 0.56% | |||||
Kurnia Asia Bhd | 4,595,200 | 1,546,164 | |||
MAA Holdings Bhd | 789,800 | 676,060 | |||
2,222,224 | |||||
LODGING – 4.91% | |||||
Genting Bhd | 3,015,600 | 19,400,495 | |||
19,400,495 | |||||
MEDIA – 2.57% | |||||
Astro All Asia Networks PLC | 3,733,600 | 4,763,732 | |||
Media Prima Bhd1 | 3,518,200 | 1,837,230 | |||
New Straits Times Press Bhd | 933,400 | 567,829 | |||
Star Publications (Malaysia) Bhd | 1,507,800 | 2,983,131 | |||
10,151,922 | |||||
METAL FABRICATE & HARDWARE – 0.05% | |||||
KrisAssets Holdings Bhd1,2 | 282,362 | 195,837 | |||
195,837 | |||||
OIL & GAS – 1.33% | |||||
Petronas Dagangan Bhd | 1,938,600 | 2,202,124 | |||
Shell Refining Co. | 1,148,800 | 3,061,405 | |||
5,263,529 | |||||
OIL & GAS SERVICES – 0.35% | |||||
Scomi Group Bhd | 4,236,200 | 1,391,161 | |||
1,391,161 | |||||
REAL ESTATE – 2.42% | |||||
Bandar Raya Developments Bhd | 1,651,400 | 444,522 | |||
IGB Corp. Bhd | 5,744,000 | 1,762,627 | |||
IOI Properties Bhd | 646,250 | 1,443,842 | |||
KLCC Property Holdings Bhd | 3,590,000 | 2,096,985 | |||
MK Land Holdings Bhd | 2,800,200 | 478,635 | |||
SP Setia Bhd | 3,661,800 | 3,331,597 | |||
9,558,208 | |||||
RETAIL – 0.12% | |||||
Edaran Otomobil Nasional Bhd | 574,400 | 463,849 | |||
463,849 | |||||
SEMICONDUCTORS – 0.67% | |||||
Malaysian Pacific Industries Bhd | 646,200 | 1,739,435 | |||
Unisem (Malaysia) Bhd | 1,938,600 | 918,422 | |||
2,657,857 | |||||
TELECOMMUNICATIONS – 8.46% | |||||
Maxis Communications Bhd | 6,749,200 | 15,805,664 | |||
Telekom Malaysia Bhd | 6,605,600 | 17,603,079 | |||
33,408,743 | |||||
TRANSPORTATION – 5.77% | |||||
Malaysia International Shipping Corp. Bhd | 7,251,800 | 18,934,713 | |||
Malaysian Bulk Carriers Bhd | 1,866,800 | 1,145,708 | |||
POS Malaysia & Services Holdings Bhd | 2,369,400 | 2,716,997 | |||
22,797,418 | |||||
TOTAL COMMON STOCKS | 394,505,003 | ||||
SHORT-TERM INVESTMENTS – 0.06% | |||||
MONEY MARKET FUNDS – 0.06% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | |||||
4.51%3,4 | 222,045 | 222,045 | |||
222,045 | |||||
TOTAL SHORT-TERM INVESTMENTS | 222,045 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.94% | 394,727,048 | ||||
Other Assets, Less Liabilities – 0.06% | 235,879 | ||||
NET ASSETS – 100.00% | $ | 394,962,927 | |||
SCHEDULESOF INVESTMENTS | 37 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MALAYSIA INDEX FUND
February 28, 2006
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. |
4 | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to the financial statements.
38 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2006
Security | Shares | Value | ||||
COMMON STOCKS – 99.86% | ||||||
BEVERAGES – 8.61% | ||||||
Coca-Cola Femsa SA de CV ADR | 147,600 | $ | 4,513,608 | |||
Fomento Economico Mexicano SA de CV Class UBD | 2,841,300 | 24,550,101 | ||||
Grupo Modelo SA de CV Series C | 3,345,600 | 11,518,848 | ||||
40,582,557 | ||||||
BUILDING MATERIALS – 15.41% | ||||||
Cemex SA de CV Series CPO | 11,709,600 | 72,660,548 | ||||
72,660,548 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 3.86% | ||||||
Grupo Financiero Banorte SA de CV Series O1 | 7,441,500 | 18,221,410 | ||||
18,221,410 | ||||||
ENGINEERING & CONSTRUCTION – 1.64% | ||||||
Carso Infraestructura y Construccion SA2 | 3,185,700 | 2,738,271 | ||||
Grupo Aeroportuario del Sureste SA de CV ADR | 147,600 | 4,980,024 | ||||
7,718,295 | ||||||
FOOD – 1.72% | ||||||
Grupo Bimbo SA Series A1 | 2,287,800 | 8,117,474 | ||||
8,117,474 | ||||||
FOREST PRODUCTS & PAPER – 2.19% | ||||||
Kimberly-Clark de Mexico SA de CV Class A | 3,013,500 | 10,317,808 | ||||
10,317,808 | ||||||
HOLDING COMPANIES - DIVERSIFIED – 4.69% | ||||||
Alfa SA de CV Class A | 1,414,500 | 7,546,561 | ||||
Grupo Carso SA de CV Series A1 | 5,744,100 | 14,542,929 | ||||
22,089,490 | ||||||
HOME BUILDERS – 3.48% | ||||||
Corporacion GEO SA de CV Series B2 | 2,361,600 | 9,287,032 | ||||
Urbi Desarrollos Urbanos SA de CV2 | 934,800 | 7,135,939 | ||||
16,422,971 | ||||||
HOUSEWARES – 0.33% | ||||||
Vitro SA de CV Series A1 | 1,414,569 | 1,577,011 | ||||
1,577,011 | ||||||
Security | Shares or Principal | Value | ||||
MEDIA – 5.68% | ||||||
Grupo Televisa SA Series CPO | 5,658,000 | $ | 22,536,897 | |||
TV Azteca SA de CV Series CPO1 | 6,678,900 | 4,233,801 | ||||
26,770,698 | ||||||
MINING – 3.17% | ||||||
Grupo Mexico SA de CV Series B | 4,747,800 | 12,183,914 | ||||
Industrias Penoles SA de CV Series CP | 430,500 | 2,748,315 | ||||
14,932,229 | ||||||
REAL ESTATE – 1.76% | ||||||
Consorcio Ara SA de CV | 1,943,400 | 8,300,229 | ||||
8,300,229 | ||||||
RETAIL – 7.45% | ||||||
Controladora Comercial Mexicana SA de CV | 2,681,400 | 4,860,846 | ||||
Grupo Sanborns SA Series B11,2 | 1,236,193 | 2,683,021 | ||||
Organizacion Soriana SA de CV Series B2 | 1,114,626 | 4,932,129 | ||||
Wal-Mart de Mexico SA de CV Series V1 | 7,908,900 | 22,670,423 | ||||
35,146,419 | ||||||
TELECOMMUNICATIONS – 39.87% | ||||||
America Movil SA de CV Series L | 66,862,800 | 116,222,537 | ||||
America Telecom SA de CV Series A11,2 | 3,148,800 | 18,331,710 | ||||
Carso Global Telecom SA de CV Class A11,2 | 4,458,873 | 10,662,295 | ||||
Telefonos de Mexico SA de CV Series L1 | 38,019,300 | 42,785,094 | ||||
188,001,636 | ||||||
TOTAL COMMON STOCKS | 470,858,775 | |||||
SHORT-TERM INVESTMENTS – 6.72% | ||||||
CERTIFICATES OF DEPOSIT3 – 0.08% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 146,682 | 146,682 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 234,689 | 234,689 | ||||
381,371 |
SCHEDULESOF INVESTMENTS | 39 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
COMMERCIAL PAPER3 – 0.23% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | $ | 146,681 | $ | 145,462 | ||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 88,008 | 87,481 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 146,681 | 145,470 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 84,195 | 83,720 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 146,681 | 145,333 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 308,030 | 306,820 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 176,017 | 175,285 | ||||
1,089,571 | ||||||
MEDIUM-TERM NOTES3 – 0.21% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 90,942 | 90,939 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 176,017 | 176,014 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 293,361 | 294,161 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 366,702 | 366,713 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 58,672 | 57,906 | ||||
985,733 | ||||||
MONEY MARKET FUNDS – 0.08% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 367,620 | 367,620 | ||||
367,620 | ||||||
REPURCHASE AGREEMENTS3 – 1.63% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $440,098 (collateralized by non-U.S. Government debt securities, value $484,838, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 440,042 | 440,042 | |||
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $1,466,993 (collateralized by U.S. Government obligations, value $1,499,096, 3.69% to 10.00%, 5/1/09 to 1/1/36). | $ | 1,466,807 | $ | 1,466,807 | ||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $733,498 (collateralized by non-U.S. Government debt securities, value $771,310, 1.01%, 9/19/35). 6 | 733,404 | 733,404 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $1,466,993 (collateralized by U.S. Government obligations, value $1,498,545, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 1,466,807 | 1,466,807 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $1,466,999 (collateralized by non-U.S. Government debt securities, value $1,542,620, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 1,466,807 | 1,466,807 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $352,078 (collateralized by U.S. Government obligations, value $359,658, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 352,034 | 352,034 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $293,399 (collateralized by non-U.S. Government debt securities, value $302,658, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 293,361 | 293,361 |
40 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $ 1,466,995 (collateralized by non-U.S. Government debt securities, value $1,540,272, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | $ | 1,466,807 | $ | 1,466,807 | ||
7,686,069 | ||||||
TIME DEPOSITS3 – 0.45% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 586,723 | 586,723 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 1,026,765 | 1,026,765 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 527,895 | 527,895 | ||||
2,141,383 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 4.04% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 824,346 | 824,477 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 689,399 | 689,395 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 117,345 | 117,345 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 88,008 | 88,079 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 953,425 | 953,672 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 190,685 | 190,685 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 293,361 | 293,361 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 378,436 | 378,429 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 293,361 | 293,361 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 789,142 | 789,131 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 73,340 | 73,340 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 293,361 | 293,361 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 73,340 | 73,338 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 293,361 | 293,361 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 586,723 | 586,723 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 58,672 | 58,670 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 132,013 | 132,112 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 73,340 | 73,340 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 293,361 | 293,361 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 293,361 | 293,361 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 806,744 | 806,744 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 102,677 | 102,691 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 264,025 | 264,019 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 307,361 | 307,360 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 234,689 | 234,690 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 161,349 | 161,349 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 877,151 | 877,512 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 586,723 | 586,723 |
SCHEDULES OF INVESTMENTS | 41 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
Natexis Banques Populaires | |||||||
4.55%, 03/15/077 | $ | 220,021 | $ | 220,021 | |||
Nationwide Building Society | |||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 792,076 | 792,103 | |||||
Nordea Bank AB | |||||||
4.55%, 02/09/077 | 513,383 | 513,383 | |||||
Northern Rock PLC | |||||||
4.61%, 02/02/077 | 352,034 | 352,045 | |||||
Permanent Financing PLC | |||||||
4.53%, 03/10/06 - 06/12/067 | 797,943 | 797,943 | |||||
Pfizer Investment Capital PLC | |||||||
4.53%, 02/15/077 | 733,404 | 733,404 | |||||
Principal Life Income Funding Trusts | |||||||
4.70%, 05/10/06 | 220,021 | 220,023 | |||||
Sedna Finance Inc. | |||||||
4.54%, 09/20/067 | 88,008 | 88,008 | |||||
Sigma Finance Inc. | |||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 325,631 | 325,625 | |||||
Skandinaviska Enskilda Bank NY | |||||||
4.56%, 03/19/077 | 293,361 | 293,361 | |||||
Societe Generale | |||||||
4.54%, 03/02/077 | 205,353 | 205,353 | |||||
Strips III LLC | |||||||
4.62%, 07/24/067,8 | 75,686 | 75,686 | |||||
SunTrust Bank | |||||||
4.62%, 04/28/06 | 440,042 | 440,042 | |||||
Tango Finance Corp. | |||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 654,196 | 654,165 | |||||
Toyota Motor Credit Corp. | |||||||
4.57%, 04/10/06 | 132,013 | 132,012 | |||||
UniCredito Italiano SpA | |||||||
4.43%, 06/14/06 | 381,370 | 381,331 | |||||
Union Hamilton Special Funding LLC | |||||||
4.52%, 03/28/067 | 293,361 | 293,361 | |||||
US Bank N.A. | |||||||
4.54%, 09/29/06 | 132,013 | 131,993 | |||||
Variable Funding Capital Corp. | |||||||
4.52%, 03/09/06 - 03/13/06 | 440,042 | 440,042 | |||||
Wachovia Asset Securitization Inc. | |||||||
4.57%, 03/26/067 | 559,880 | 559,879 | |||||
Wells Fargo & Co. | |||||||
4.56%, 03/15/077 | 146,681 | 146,692 | |||||
WhistleJacket Capital Ltd. | |||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 146,681 | 146,673 | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 308,030 | 308,031 | |||||
Winston Funding Ltd. | |||||||
4.68%, 04/23/067 | 209,460 | 209,460 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 440,042 | 440,042 | |||||
19,030,668 | |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost: $31,682,415) | 31,682,415 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 106.58% (Cost: $417,986,477) | 502,541,190 | ||||||
Other Assets, Less Liabilities – (6.58)% | (31,025,132 | ) | |||||
NET ASSETS – 100.00% | $ | 471,516,058 | |||||
ADR – American 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 (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
42 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.36% | |||||
AUSTRALIA – 65.73% | |||||
Alinta Ltd. | 525,186 | $ | 4,338,295 | ||
Alumina Ltd. | 2,624,856 | 13,532,128 | |||
Amcor Ltd. | 1,823,115 | 10,075,999 | |||
AMP Ltd. | 4,061,868 | 25,949,284 | |||
Ansell Ltd. | 325,780 | 2,662,062 | |||
APN News & Media Ltd. | 719,938 | 2,540,328 | |||
Aristocrat Leisure Ltd.1 | 671,787 | 6,013,396 | |||
Australia & New Zealand Banking Group Ltd. | 3,968,251 | 75,817,808 | |||
Australian Gas Light Co. Ltd. | 981,636 | 13,964,339 | |||
Australian Stock Exchange Ltd. | 211,578 | 5,101,761 | |||
AXA Asia Pacific Holdings Ltd. | 1,912,615 | 8,311,598 | |||
Babcock & Brown Ltd. | 323,990 | 4,170,915 | |||
BHP Billiton Ltd. | 7,811,202 | 140,711,871 | |||
Billabong International Ltd. | 287,653 | 3,316,361 | |||
BlueScope Steel Ltd. | 825,418 | 4,046,868 | |||
Boral Ltd. | 1,297,929 | 8,475,024 | |||
Brambles Industries Ltd.1 | 2,121,866 | 15,841,093 | |||
Caltex Australia Ltd. | 295,708 | 3,778,267 | |||
Centro Properties Group | 1,709,271 | 8,634,177 | |||
Challenger Financial Services Group Ltd. | 921,134 | 2,661,789 | |||
Coca-Cola Amatil Ltd. | 1,154,192 | 6,044,610 | |||
Cochlear Ltd. | 115,097 | 4,189,490 | |||
Coles Myer Ltd. | 2,603,913 | 18,994,991 | |||
Commonwealth Bank of Australia | 2,780,049 | 92,622,399 | |||
Commonwealth Property Office Fund | 3,973,621 | 3,984,936 | |||
Computershare Ltd. | 869,224 | 4,371,410 | |||
CSL Ltd. | 401,139 | 15,703,868 | |||
CSR Ltd. | 2,043,464 | 5,798,711 | |||
DB RREEF Trust | 5,754,850 | 6,027,736 | |||
DCA Group Ltd.1 | 910,752 | 2,374,698 | |||
Downer EDI Ltd. | 610,390 | 3,559,411 | |||
Foster’s Group Ltd. | 4,348,805 | 17,573,973 | |||
Futuris Corp. Ltd. | 1,263,024 | 2,214,240 | |||
Gandel Retail Trust | 3,296,643 | 4,775,377 | |||
GPT Group | 3,987,583 | 12,293,031 | |||
Harvey Norman Holdings Ltd. | 901,623 | 2,344,197 | |||
Iluka Resources Ltd. | 513,372 | 2,722,899 | |||
ING Industrial Fund | 1,869,476 | 3,180,215 | |||
Insurance Australia Group Ltd. | 3,543,126 | 14,186,540 | |||
Investa Property Group | 3,671,469 | 5,481,975 | |||
James Hardie Industries NV | 1,018,331 | 6,717,429 | |||
John Fairfax Holdings Ltd. | 2,124,551 | 6,265,544 | |||
Leighton Holdings Ltd. | 286,937 | 3,883,614 | |||
Lend Lease Corp. Ltd. | 789,927 | 7,822,008 | |||
Lion Nathan Ltd. | 668,028 | 3,969,957 | |||
Macquarie Airports | 1,381,164 | 3,313,972 | |||
Macquarie Bank Ltd. | 499,231 | 23,819,936 | |||
Macquarie Communications Infrastructure Group | 708,874 | 2,985,749 | |||
Macquarie Goodman Group | 2,560,058 | 9,603,782 | |||
Macquarie Infrastructure Group | 5,180,081 | 13,468,081 | |||
Macquarie Office Trust | 2,400,032 | 2,415,780 | |||
Mayne Pharma Ltd.2 | 1,442,112 | 2,967,426 | |||
Mirvac Group | 1,995,313 | 6,240,139 | |||
Multiplex Group | 1,506,106 | 3,535,442 | |||
National Australia Bank Ltd. | 3,407,802 | 92,854,896 | |||
Newcrest Mining Ltd. | 718,685 | 11,318,153 | |||
OneSteel Ltd. | 1,313,681 | 3,766,850 | |||
Orica Ltd. | 684,459 | 11,689,274 | |||
Origin Energy Ltd. | 1,784,272 | 9,145,581 | |||
Pacific Brands Ltd. | 1,274,480 | 2,149,117 | |||
PaperlinX Ltd. | 1,056,458 | 2,668,285 | |||
Patrick Corp. Ltd. | 1,457,776 | 7,417,926 | |||
Perpetual Ltd. | 86,994 | 4,394,398 | |||
Publishing & Broadcasting Ltd. | 299,467 | 3,790,703 | |||
Qantas Airways Ltd. | 1,917,985 | 5,841,578 | |||
QBE Insurance Group Ltd. | 1,674,724 | 25,752,223 | |||
Rinker Group Ltd. | 2,026,459 | 26,930,802 | |||
Rio Tinto Ltd. | 623,994 | 33,003,617 | |||
Santos Ltd. | 1,305,268 | 10,976,079 | |||
SFE Corp. Ltd. | 288,906 | 2,744,911 | |||
Sonic Healthcare Ltd. | 554,005 | 6,391,257 | |||
Stockland Trust Group | 2,907,318 | 14,534,789 | |||
Suncorp-Metway Ltd. | 1,189,813 | 18,083,624 | |||
Symbion Health Ltd. | 1,375,257 | 3,422,392 | |||
TABCORP Holdings Ltd. | 1,184,801 | 13,369,166 | |||
Telstra Corp. Ltd. | 4,360,619 | 12,471,250 | |||
Toll Holdings Ltd. | 547,919 | 4,754,013 |
SCHEDULESOF INVESTMENTS | 43 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Transurban Group | 1,756,885 | $ | 9,318,428 | ||
UNiTAB Ltd. | 254,717 | 2,605,512 | |||
Wesfarmers Ltd. | 830,202 | 22,571,789 | |||
Westfield Group | 3,214,303 | 42,501,861 | |||
Westpac Banking Corp. Ltd. | 3,966,640 | 69,569,663 | |||
Woodside Petroleum Ltd. | 1,011,529 | 30,424,766 | |||
Woolworths Ltd. | 2,506,358 | 34,258,004 | |||
1,224,117,836 | |||||
HONG KONG – 20.86% | |||||
ASM Pacific Technology Ltd. | 447,500 | 2,500,322 | |||
Bank of East Asia Ltd. | 3,186,200 | 10,944,202 | |||
BOC Hong Kong Holdings Ltd. | 8,144,500 | 16,428,299 | |||
Cathay Pacific Airways Ltd. | 2,506,000 | 4,667,268 | |||
Cheung Kong Holdings Ltd. | 3,222,000 | 34,011,303 | |||
Cheung Kong Infrastructure Holdings Ltd.1 | 895,000 | 2,820,433 | |||
CLP Holdings Ltd. | 3,938,000 | 22,561,154 | |||
Esprit Holdings Ltd. | 2,148,000 | 16,514,239 | |||
Giordano International Ltd. | 3,580,000 | 1,903,359 | |||
Hang Lung Properties Ltd. | 4,117,736 | 7,430,198 | |||
Hang Seng Bank Ltd. | 1,682,600 | 22,532,546 | |||
Henderson Land Development Co. Ltd. | 1,611,000 | 8,627,409 | |||
Hong Kong & China Gas Co. Ltd. | 7,876,836 | 18,883,330 | |||
Hong Kong Exchanges & Clearing Ltd. | 2,148,000 | 11,032,564 | |||
Hongkong Electric Holdings Ltd. | 3,043,000 | 14,060,636 | |||
Hopewell Holdings Ltd. | 1,432,000 | 4,014,358 | |||
Hutchinson Telecommunications International Ltd.2 | 3,043,000 | 4,686,879 | |||
Hutchison Whampoa Ltd. | 4,654,000 | 44,388,650 | |||
Hysan Development Co. Ltd. | 1,432,000 | 3,506,796 | |||
Johnson Electric Holdings Ltd. | 2,506,000 | 2,454,757 | |||
Kerry Properties Ltd.1 | 1,074,000 | 3,460,654 | |||
Kingboard Chemical Holdings Co. Ltd. | 1,163,500 | 3,674,061 | |||
Li & Fung Ltd. | 3,938,000 | 7,994,110 | |||
Link REIT (The)2 | 4,654,000 | 10,197,393 | |||
MTR Corp. Ltd. | 2,864,000 | 6,515,257 | |||
New World Development Co. Ltd. | 5,012,941 | 8,011,763 | |||
Noble Group Ltd. | 2,148,000 | 1,616,482 | |||
Orient Overseas International Ltd. | 537,000 | 1,979,494 | |||
PCCW Ltd. | 8,413,845 | 5,801,792 | |||
SCMP Group Ltd. | 2,148,000 | 795,950 | |||
Shangri-La Asia Ltd. | 2,506,000 | 4,021,280 | |||
Sino Land Co. Ltd.1 | 3,222,000 | 4,837,994 | |||
SmarTone Telecommunications Holdings Ltd. | 716,000 | 812,100 | |||
Solomon Systech International Ltd. | 5,012,000 | 2,357,859 | |||
Sun Hung Kai Properties Ltd. | 2,864,000 | 29,900,047 | |||
Swire Pacific Ltd. Class A | 2,058,500 | 19,752,834 | |||
Techtronic Industries Co. Ltd. | 984,000 | 1,705,812 | |||
Television Broadcasts Ltd. | 716,000 | 4,028,201 | |||
Texwinca Holdings Ltd. | 1,432,000 | 1,125,866 | |||
Wharf Holdings Ltd. (The) | 2,685,000 | 9,966,683 | |||
Wing Hang Bank Ltd. | 358,000 | 2,761,602 | |||
Yue Yuen Industrial Holdings Ltd. | 1,074,000 | 3,329,149 | |||
388,615,085 | |||||
NEW ZEALAND – 2.14% | |||||
Auckland International Airport Ltd. | 2,329,864 | 2,884,232 | |||
Contact Energy Ltd. | 604,662 | 2,878,058 | |||
Fisher & Paykel Appliances Holdings Ltd. | 483,121 | 1,253,718 | |||
Fisher & Paykel Healthcare Corp. Ltd. | 1,024,059 | 2,562,564 | |||
Fletcher Building Ltd. | 1,015,825 | 5,299,112 | |||
Kiwi Income Property Trust | 1,564,160 | 1,315,052 | |||
Sky City Entertainment Group Ltd. | 926,146 | 3,065,543 | |||
Sky Network Television Ltd. New2 | 424,236 | 1,774,935 | |||
Telecom Corp. of New Zealand Ltd. | 4,296,000 | 15,044,506 | |||
Tower Ltd.2 | 702,396 | 995,070 | |||
Vector Ltd.2 | 549,943 | 939,281 | |||
Warehouse Group Ltd. (The) | 360,685 | 916,890 | |||
Waste Management NZ Ltd. | 232,879 | 994,370 | |||
39,923,331 | |||||
SINGAPORE – 10.63% | |||||
Allgreen Properties Ltd. | 1,074,000 | 907,615 | |||
Ascendas Real Estate Investment Trust | 1,969,000 | 2,623,471 | |||
Capitaland Ltd. | 2,327,000 | 6,028,684 | |||
CapitaMall Trust Management Ltd. | 1,432,000 | 2,058,144 | |||
Chartered Semiconductor Manufacturing Ltd.2 | 2,148,000 | 1,788,730 | |||
City Developments Ltd. | 1,074,000 | 6,293,681 |
44 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2006
Security | Shares | Value | ||||
ComfortDelGro Corp. Ltd. | 3,938,000 | $ | 4,008,081 | |||
COSCO Corp. (Singapore) Ltd. | 1,790,000 | 1,313,944 | ||||
Creative Technology Ltd. | 170,050 | 1,332,162 | ||||
Datacraft Asia Ltd.2 | 537,000 | 622,920 | ||||
DBS Group Holdings Ltd. | 2,506,000 | 25,351,386 | ||||
Fraser & Neave Ltd. | 358,830 | 4,227,649 | ||||
Haw Par Corp. Ltd. | 358,397 | 1,260,132 | ||||
Jardine Cycle & Carriage Ltd. | 179,000 | 1,137,279 | ||||
Keppel Corp. Ltd. | 1,253,000 | 10,820,713 | ||||
Keppel Land Ltd. | 716,000 | 1,952,145 | ||||
Neptune Orient Lines Ltd. | 509,000 | 791,216 | ||||
Olam International Ltd. | 1,432,000 | 1,625,315 | ||||
Oversea-Chinese Banking Corp. | 5,562,600 | 23,332,622 | ||||
Overseas Union Enterprise Ltd. | 179,000 | 1,313,944 | ||||
Parkway Holdings Ltd. | 1,315,000 | 1,987,324 | ||||
SembCorp Industries Ltd. | 1,969,240 | 3,789,920 | ||||
SembCorp Marine Ltd. | 1,074,000 | 1,941,104 | ||||
Singapore Airlines Ltd. | 1,253,000 | 11,439,040 | ||||
Singapore Exchange Ltd. | 1,611,000 | 3,796,083 | ||||
Singapore Land Ltd. | 358,000 | 1,347,068 | ||||
Singapore Petroleum Co. Ltd. | 179,000 | 557,598 | ||||
Singapore Post Ltd. | 3,222,000 | 2,404,848 | ||||
Singapore Press Holdings Ltd. | 3,580,517 | 9,806,308 | ||||
Singapore Technologies Engineering Ltd. | 2,864,000 | 5,370,607 | ||||
Singapore Telecommunications Ltd. | 14,678,871 | 23,632,516 | ||||
SMRT Corp. Ltd. | 1,432,000 | 971,656 | ||||
STATS ChipPAC Ltd.2 | 3,043,000 | 2,139,851 | ||||
Suntec REIT | 716,000 | 525,578 | ||||
United Overseas Bank Ltd. | 2,506,000 | 23,187,243 | ||||
United Overseas Land Ltd. | 1,146,000 | 1,887,438 | ||||
Venture Corp. Ltd. | 358,000 | 2,892,885 | ||||
Want Want Holdings Ltd. | 358,000 | 451,080 | ||||
Wing Tai Holdings Ltd. | 1,074,333 | 994,047 | ||||
197,912,027 | ||||||
TOTAL COMMON STOCKS | 1,850,568,279 | |||||
Security | Shares or Principal | Value | ||||
SHORT-TERM INVESTMENTS – 0.46% | ||||||
CERTIFICATES OF DEPOSIT3 – 0.01% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 39,772 | $ | 39,772 | ||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 63,627 | 63,627 | ||||
103,399 | ||||||
COMMERCIAL PAPER3 – 0.02% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 39,767 | 39,437 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 23,860 | 23,717 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 39,767 | 39,439 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 22,826 | 22,698 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 39,767 | 39,402 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 83,511 | 83,183 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 47,721 | 47,522 | ||||
295,398 | ||||||
MEDIUM-TERM NOTES3 – 0.01% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 24,656 | 24,655 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 47,721 | 47,720 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 79,534 | 79,751 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 99,418 | 99,421 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 15,907 | 15,699 | ||||
267,246 | ||||||
MONEY MARKET FUNDS – 0.00% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 18,881 | 18,881 | ||||
18,881 |
SCHEDULESOF INVESTMENTS | 45 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
REPURCHASE AGREEMENTS3– 0.11% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $119,316 (collateralized by non-U.S. Government debt securities, value $131,446, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 119,301 | $ | 119,301 | ||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $397,721 (collateralized by U.S. Government obligations, value $ 406,425, 3.69% to 10.00%, 5/1/09 to 1/1/36). | 397,671 | 397,671 | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $198,861 (collateralized by non-U.S. Government debt securities, value $209,113, 1.01%, 9/19/35).6 | 198,836 | 198,836 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $397,721 (collateralized by U.S. Government obligations, value $ 406,276, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 397,671 | 397,671 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $397,723 (collateralized by non-U.S. Government debt securities, value $418,225, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 397,671 | 397,671 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $95,453 (collateralized by U.S. Government obligations, value $97,508, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 95,441 | 95,441 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $79,544 (collateralized by non-U.S. Government debt securities, value $82,055, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 79,534 | 79,534 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $ 397,722 (collateralized by non-U.S. Government debt securities, value $417,589, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 397,671 | 397,671 | ||||
2,083,796 | ||||||
TIME DEPOSITS3 – 0.03% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 159,069 | 159,069 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 278,370 | 278,370 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 143,120 | 143,120 | ||||
580,559 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 0.28% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 223,491 | 223,527 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 186,906 | 186,905 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 31,814 | 31,814 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 23,860 | 23,879 |
46 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | $ | 258,486 | $ | 258,553 | ||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 51,697 | 51,697 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 79,534 | 79,534 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 102,599 | 102,598 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 79,534 | 79,534 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 213,947 | 213,945 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 19,884 | 19,884 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 79,534 | 79,534 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 19,884 | 19,883 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 79,534 | 79,534 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 159,069 | 159,069 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 15,907 | 15,906 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 35,790 | 35,817 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 19,884 | 19,884 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 79,534 | 79,534 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 79,534 | 79,534 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 218,719 | 218,719 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 27,837 | 27,841 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 71,581 | 71,579 | ||||
Leafs LLC | ||||||
4.57%, 01/22/07 - 02/20/077 | 83,330 | 83,329 | ||||
Links Finance LLC | ||||||
4.56%, 03/15/067 | 63,627 | 63,628 | ||||
Marshall & Ilsley Bank | ||||||
4.55%, 02/15/07 | 43,744 | 43,744 | ||||
Metropolitan Life Global Funding I | ||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 237,808 | 237,905 | ||||
Mound Financing PLC | ||||||
4.53%, 11/08/067 | 159,069 | 159,069 | ||||
Natexis Banques Populaires | ||||||
4.55%, 03/15/077 | 59,651 | 59,651 | ||||
Nationwide Building Society | ||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 214,743 | 214,750 | ||||
Nordea Bank AB | ||||||
4.55%, 02/09/077 | 139,185 | 139,185 | ||||
Northern Rock PLC | ||||||
4.61%, 02/02/077 | 95,441 | 95,444 | ||||
Permanent Financing PLC | ||||||
4.53%, 03/10/06 - 06/12/067 | 216,333 | 216,333 | ||||
Pfizer Investment Capital PLC | ||||||
4.53%, 02/15/077 | 198,836 | 198,836 | ||||
Principal Life Income Funding Trusts | ||||||
4.70%, 05/10/06 | 59,651 | 59,651 | ||||
Sedna Finance Inc. | ||||||
4.54%, 09/20/067 | 23,860 | 23,860 | ||||
Sigma Finance Inc. | ||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 88,283 | 88,281 | ||||
Skandinaviska Enskilda Bank NY | ||||||
4.56%, 03/19/077 | 79,534 | 79,534 | ||||
Societe Generale | ||||||
4.54%, 03/02/077 | 55,674 | 55,674 | ||||
Strips III LLC | ||||||
4.62%, 07/24/067,8 | 20,520 | 20,520 | ||||
SunTrust Bank | ||||||
4.62%, 04/28/06 | 119,301 | 119,301 |
SCHEDULESOF INVESTMENTS | 47 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Tango Finance Corp. | ||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | $ | 177,361 | $ | 177,353 | ||
Toyota Motor Credit Corp. | ||||||
4.57%, 04/10/06 | 35,790 | 35,790 | ||||
UniCredito Italiano SpA | ||||||
4.43%, 06/14/06 | 103,395 | 103,384 | ||||
Union Hamilton Special Funding LLC | ||||||
4.52%, 03/28/067 | 79,534 | 79,534 | ||||
US Bank N.A. | ||||||
4.54%, 09/29/06 | 35,790 | 35,785 | ||||
Variable Funding Capital Corp. | ||||||
4.52%, 03/09/06 - 03/13/06 | 119,301 | 119,301 | ||||
Wachovia Asset Securitization Inc. | ||||||
4.57%, 03/26/067 | 151,791 | 151,791 | ||||
Wells Fargo & Co. | ||||||
4.56%, 03/15/077 | 39,767 | 39,770 | ||||
WhistleJacket Capital Ltd. | ||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 39,767 | 39,765 | ||||
White Pine Finance LLC | ||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 83,511 | 83,511 | ||||
Winston Funding Ltd. | ||||||
4.68%, 04/23/067 | 56,787 | 56,787 | ||||
World Savings Bank | ||||||
4.52%, 03/09/06 | 119,301 | 119,301 | ||||
5,159,471 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 8,508,750 | |||||
TOTAL INVESTMENTS IN SECURITIES – 99.82% | 1,859,077,029 | |||||
Other Assets, Less Liabilities – 0.18% | 3,331,107 | |||||
NET ASSETS – 100.00% | $ | 1,862,408,136 | ||||
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 (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
48 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.85% | |||||
AIRLINES – 4.92% | |||||
Singapore Airlines Ltd. | 2,635,000 | $ | 24,055,763 | ||
24,055,763 | |||||
BANKS – 35.14% | |||||
DBS Group Holdings Ltd. | 5,930,000 | 59,989,513 | |||
Oversea-Chinese Banking Corp. | 13,133,000 | 55,087,068 | |||
United Overseas Bank Ltd. | 6,143,000 | 56,839,281 | |||
171,915,862 | |||||
BEVERAGES – 2.75% | |||||
Fraser & Neave Ltd. | 1,142,000 | 13,454,770 | |||
13,454,770 | |||||
COMPUTERS – 0.50% | |||||
Creative Technology Ltd. | 314,050 | 2,460,251 | |||
2,460,251 | |||||
DISTRIBUTION & WHOLESALE – 0.74% | |||||
Jardine Cycle & Carriage Ltd. | 571,000 | 3,627,857 | |||
3,627,857 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.93% | |||||
Singapore Exchange Ltd. | 3,997,000 | 9,418,339 | |||
9,418,339 | |||||
ELECTRONICS – 1.89% | |||||
Venture Corp. Ltd. | 1,142,000 | 9,228,140 | |||
9,228,140 | |||||
ENGINEERING & CONSTRUCTION – 4.42% | |||||
SembCorp Industries Ltd. | 4,568,000 | 8,791,389 | |||
Singapore Technologies Engineering Ltd. | 6,852,000 | 12,848,953 | |||
21,640,342 | |||||
FOOD – 1.38% | |||||
Olam International Ltd. | 3,426,000 | 3,888,499 | |||
Want Want Holdings Ltd. | 2,284,000 | 2,877,840 | |||
6,766,339 | |||||
HEALTH CARE – SERVICES – 0.88% | |||||
Parkway Holdings Ltd. | 2,855,000 | 4,314,684 | |||
4,314,684 | |||||
HOLDING COMPANIES – DIVERSIFIED – 6.10% | |||||
Haw Par Corp. Ltd. | 571,000 | 2,007,649 | |||
Keppel Corp. Ltd. | 2,775,000 | 23,964,470 | |||
Noble Group Ltd.1 | 5,139,000 | 3,867,366 | |||
29,839,485 | |||||
LODGING – 0.86% | |||||
Overseas Union Enterprise Ltd. | 571,000 | 4,191,407 | |||
4,191,407 | |||||
MEDIA – 4.68% | |||||
Singapore Press Holdings Ltd. | 8,364,000 | 22,907,294 | |||
22,907,294 | |||||
OIL & GAS – 0.37% | |||||
Singapore Petroleum Co. Ltd. | 571,000 | 1,778,707 | |||
1,778,707 | |||||
REAL ESTATE – 9.72% | |||||
Allgreen Properties Ltd. | 2,284,000 | 1,930,161 | |||
Capitaland Ltd. | 5,710,000 | 14,793,202 | |||
City Developments Ltd. | 2,569,000 | 15,054,437 | |||
Keppel Land Ltd. | 1,713,000 | 4,670,425 | |||
Singapore Land Ltd. | 1,142,000 | 4,297,073 | |||
United Overseas Land Ltd. | 2,855,000 | 4,702,125 | |||
Wing Tai Holdings Ltd. | 2,284,000 | 2,113,315 | |||
47,560,738 | |||||
REAL ESTATE INVESTMENT TRUSTS – 3.43% | |||||
Ascendas Real Estate Investment Trust | 5,139,000 | 6,847,139 | |||
CapitaMall Trust Management Ltd. | 4,568,000 | 6,565,364 | |||
Suntec REIT | 4,568,000 | 3,353,126 | |||
16,765,629 | |||||
SEMICONDUCTORS – 1.86% | |||||
Chartered Semiconductor Manufacturing Ltd.1,2 | 5,139,000 | 4,279,462 | |||
STATS ChipPAC Ltd.2 | 6,852,000 | 4,818,357 | |||
9,097,819 | |||||
SHIPBUILDING – 1.06% | |||||
SembCorp Marine Ltd. | 2,855,000 | 5,160,010 | |||
5,160,010 | |||||
TELECOMMUNICATIONS – 11.92% | |||||
Datacraft Asia Ltd.2 | 1,142,000 | 1,324,720 | |||
Singapore Telecommunications Ltd. | 35,402,650 | 56,997,142 | |||
58,321,862 |
SCHEDULESOF INVESTMENTS | 49 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
TRANSPORTATION – 5.30% | ||||||
ComfortDelGro Corp. Ltd. | 9,136,000 | $ | 9,298,584 | |||
COSCO Corp. (Singapore) Ltd. | 3,997,000 | 2,933,985 | ||||
Neptune Orient Lines Ltd. | 2,855,000 | 4,437,961 | ||||
SembCorp Logistics Ltd. | 1,713,660 | 1,828,721 | ||||
Singapore Post Ltd. | 6,852,000 | 5,114,221 | ||||
SMRT Corp. Ltd. | 3,426,000 | 2,324,646 | ||||
25,938,118 | ||||||
TOTAL COMMON STOCKS | 488,443,416 | |||||
SHORT-TERM INVESTMENTS – 0.31% | ||||||
CERTIFICATES OF DEPOSIT3– 0.00% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | 6,139 | 6,139 | ||||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 9,822 | 9,822 | ||||
15,961 | ||||||
COMMERCIAL PAPER3 – 0.01% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 6,139 | 6,088 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 3,683 | 3,661 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 6,139 | 6,088 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 3,524 | 3,504 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 6,139 | 6,082 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 12,891 | 12,841 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 7,367 | 7,336 | ||||
45,600 | ||||||
MEDIUM-TERM NOTES3 – 0.01% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 3,806 | 3,806 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 7,367 | 7,366 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 12,278 | 12,311 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 15,347 | 15,347 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 2,456 | 2,423 | ||||
41,253 | ||||||
MONEY MARKET FUNDS – 0.04% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 220,334 | 220,334 | ||||
220,334 | ||||||
REPURCHASE AGREEMENTS3 – 0.07% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $18,418 (collateralized by non-U.S. Government debt securities, value $20,291, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 18,416 | 18,416 | |||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $61,396 (collateralized by U.S. Government obligations, value $ 62,739, 3.69% to 10.00%, 5/1/09 to 1/1/36). | 61,388 | 61,388 | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $30,698 (collateralized by non-U.S. Government debt securities, value $32,280, 1.01%, 9/19/35).6 | 30,694 | 30,694 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $61,396 (collateralized by U.S. Government obligations, value $62,716, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 61,388 | 61,388 |
50 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $61,396 (collateralized by non-U.S. Government debt securities, value $64,561, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | $ | 61,388 | $ | 61,388 | ||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $14,735 (collateralized by U.S. Government obligations, value $ 15,052, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 14,733 | 14,733 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $12,280 (collateralized by non-U.S. Government debt securities, value $12,667, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 12,278 | 12,278 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $ 61,396 (collateralized by non-U.S. Government debt securities, value $64,462, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 61,388 | 61,388 | ||||
321,673 | ||||||
TIME DEPOSITS3 – 0.02% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 24,555 | 24,555 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 42,971 | 42,971 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 22,093 | 22,093 | ||||
89,619 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 0.16% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 34,500 | 34,506 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 28,852 | 28,851 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 4,911 | 4,911 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 3,683 | 3,686 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 39,902 | 39,913 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 7,980 | 7,980 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 12,278 | 12,278 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 15,838 | 15,838 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 12,278 | 12,278 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 33,027 | 33,025 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 3,069 | 3,069 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 12,278 | 12,278 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 3,069 | 3,069 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 12,278 | 12,278 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 24,555 | 24,555 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 2,456 | 2,455 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 5,525 | 5,529 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 3,069 | 3,069 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 12,278 | 12,278 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 12,278 | 12,278 |
SCHEDULESOF INVESTMENTS | 51 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
Holmes Financing PLC | |||||||
4.54%, 12/15/067 | $ | 33,763 | $ | 33,763 | |||
HSBC Bank USA N.A. | |||||||
4.70%, 05/04/06 | 4,297 | 4,298 | |||||
K2 USA LLC | |||||||
4.53%, 06/02/067 | 11,050 | 11,049 | |||||
Leafs LLC | |||||||
4.57%, 01/22/07 - 02/20/077 | 12,863 | 12,863 | |||||
Links Finance LLC | |||||||
4.56%, 03/15/067 | 9,822 | 9,822 | |||||
Marshall & Ilsley Bank | |||||||
4.55%, 02/15/07 | 6,753 | 6,753 | |||||
Metropolitan Life Global Funding I | |||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 36,710 | 36,725 | |||||
Mound Financing PLC | |||||||
4.53%, 11/08/067 | 24,555 | 24,555 | |||||
Natexis Banques Populaires | |||||||
4.55%, 03/15/077 | 9,208 | 9,208 | |||||
Nationwide Building Society | |||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 33,149 | 33,151 | |||||
Nordea Bank AB | |||||||
4.55%, 02/09/077 | 21,486 | 21,486 | |||||
Northern Rock PLC | |||||||
4.61%, 02/02/077 | 14,733 | 14,733 | |||||
Permanent Financing PLC | |||||||
4.53%, 03/10/06 - 06/12/067 | 33,395 | 33,394 | |||||
Pfizer Investment Capital PLC | |||||||
4.53%, 02/15/077 | 30,694 | 30,694 | |||||
Principal Life Income Funding Trusts | |||||||
4.70%, 05/10/06 | 9,208 | 9,208 | |||||
Sedna Finance Inc. | |||||||
4.54%, 09/20/067 | 3,683 | 3,683 | |||||
Sigma Finance Inc. | |||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 13,628 | 13,627 | |||||
Skandinaviska Enskilda Bank NY | |||||||
4.56%, 03/19/077 | 12,278 | 12,278 | |||||
Societe Generale | |||||||
4.54%, 03/02/077 | 8,594 | 8,594 | |||||
Strips III LLC | |||||||
4.62%, 07/24/067,8 | 3,168 | 3,168 | |||||
SunTrust Bank | |||||||
4.62%, 04/28/06 | 18,416 | 18,416 | |||||
Tango Finance Corp. | |||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 27,379 | 27,378 | |||||
Toyota Motor Credit Corp. | |||||||
4.57%, 04/10/06 | 5,525 | 5,525 | |||||
UniCredito Italiano SpA | |||||||
4.43%, 06/14/06 | 15,961 | 15,959 | |||||
Union Hamilton Special Funding LLC | |||||||
4.52%, 03/28/067 | 12,278 | 12,278 | |||||
US Bank N.A. | |||||||
4.54%, 09/29/06 | 5,525 | 5,524 | |||||
Variable Funding Capital Corp. | |||||||
4.52%, 03/09/06 - 03/13/06 | 18,416 | 18,417 | |||||
Wachovia Asset Securitization Inc. | |||||||
4.57%, 03/26/067 | 23,432 | 23,432 | |||||
Wells Fargo & Co. | |||||||
4.56%, 03/15/077 | 6,139 | 6,139 | |||||
WhistleJacket Capital Ltd. | |||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 6,139 | 6,138 | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 12,891 | 12,892 | |||||
Winston Funding Ltd. | |||||||
4.68%, 04/23/067 | 8,766 | 8,766 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 18,416 | 18,416 | |||||
796,456 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 1,530,896 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.16% (Cost: $398,510,426) | 489,974,312 | ||||||
Other Assets, Less Liabilities – (0.16)% | (763,005 | ) | |||||
NET ASSETS – 100.00% | $ | 489,211,307 | |||||
52 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2006
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 (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 53 |
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.92% | |||||
BANKS – 15.53% | |||||
FirstRand Ltd. | 6,429,962 | $ | 19,490,261 | ||
Nedbank Group Ltd. | 456,471 | 8,841,964 | |||
Standard Bank Group Ltd. | 2,790,317 | 35,735,778 | |||
64,068,003 | |||||
BUILDING MATERIALS – 0.48% | |||||
Pretoria Portland Cement Co. Ltd. | 32,304 | 1,994,609 | |||
1,994,609 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.57% | |||||
African Bank Investments Ltd. | 1,030,985 | 4,848,057 | |||
Alexander Forbes Ltd.1 | 777,388 | 1,978,359 | |||
Investec Ltd. | 75,462 | 3,785,791 | |||
10,612,207 | |||||
ELECTRONICS – 1.02% | |||||
Reunert Ltd. | 406,820 | 4,200,581 | |||
4,200,581 | |||||
ENGINEERING & CONSTRUCTION – 1.47% | |||||
Aveng Ltd. | 908,338 | 3,511,588 | |||
Murray & Roberts Holdings Ltd. | 694,446 | 2,567,624 | |||
6,079,212 | |||||
FOOD – 3.53% | |||||
Shoprite Holdings Ltd. | 945,082 | 3,066,911 | |||
SPAR Group Ltd. (The) | 388,243 | 2,328,482 | |||
Tiger Brands Ltd. | 369,994 | 9,176,007 | |||
14,571,400 | |||||
FOREST PRODUCTS & PAPER – 1.38% | |||||
Sappi Ltd. | 449,680 | 5,692,752 | |||
5,692,752 | |||||
HEALTH CARE – PRODUCTS – 0.74% | |||||
Aspen Pharmacare Holdings Ltd.1 | 467,650 | 3,032,135 | |||
3,032,135 | |||||
HEALTH CARE – SERVICES – 0.88% | |||||
Network Healthcare Holdings Ltd.1 | 2,781,164 | 3,629,026 | |||
3,629,026 | |||||
HOLDING COMPANIES - DIVERSIFIED – 8.21% | |||||
AVI Ltd. | 726,594 | 1,971,582 | |||
Barloworld Ltd. | 494,802 | 9,564,394 | |||
Bidvest Group Ltd. | 587,944 | 9,911,444 | |||
Imperial Holdings Ltd.1 | 424,987 | 10,677,633 | |||
Tongaat-Hulett Group Ltd. | 117,712 | 1,755,400 | |||
33,880,453 | |||||
HOME FURNISHINGS – 1.54% | |||||
Steinhoff International Holdings Ltd. | 1,934,394 | 6,349,472 | |||
6,349,472 | |||||
INSURANCE – 4.82% | |||||
Liberty Group Ltd. | 270,856 | 3,714,296 | |||
Metropolitan Holdings Ltd. | 1,331,531 | 2,877,061 | |||
Sanlam Ltd. | 5,105,116 | 13,281,535 | |||
19,872,892 | |||||
IRON & STEEL – 1.07% | |||||
Mittal Steel South Africa Ltd. | 448,910 | 4,432,161 | |||
4,432,161 | |||||
MEDIA – 3.29% | |||||
Naspers Ltd. | 683,103 | 13,569,603 | |||
13,569,603 | |||||
MINING – 20.57% | |||||
Anglo Platinum Ltd. | 149,854 | 11,963,058 | |||
AngloGold Ashanti Ltd. | 303,280 | 15,633,354 | |||
Gold Fields Ltd. | 895,741 | 19,601,254 | |||
Harmony Gold Mining Co. Ltd.1 | 768,347 | 10,517,795 | |||
Impala Platinum Holdings Ltd. | 145,393 | 24,745,739 | |||
Kumba Resources Ltd. | 141,634 | 2,378,455 | |||
84,839,655 | |||||
OIL & GAS – 10.94% | |||||
Sasol Ltd. | 1,319,270 | 45,121,525 | |||
45,121,525 | |||||
PACKAGING & CONTAINERS – 1.14% | |||||
Consol Ltd. | 723,464 | 1,571,409 | |||
Nampak Ltd. | 1,169,041 | 3,126,665 | |||
4,698,074 | |||||
REAL ESTATE – 0.55% | |||||
Allan Gray Property Trust | 2,296,022 | 2,288,858 | |||
2,288,858 | |||||
RETAIL – 8.68% | |||||
Edgars Consolidated Stores Ltd. | 1,118,777 | 6,116,845 | |||
Ellerine Holdings Ltd. | 254,909 | 3,518,337 | |||
Foschini Ltd. | 471,841 | 4,367,163 |
54 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 28, 2006
Security | Shares | Value | ||||
JD Group Ltd. | 385,528 | $ | 5,748,628 | |||
Massmart Holdings Ltd. | 442,249 | 4,351,341 | ||||
Pick’n Pay Stores Ltd. | 516,068 | 2,534,645 | ||||
Truworths International Ltd. | 1,064,607 | 4,503,990 | ||||
Woolworths Holdings Ltd. | 1,829,009 | 4,663,502 | ||||
35,804,451 | ||||||
TELECOMMUNICATIONS – 10.78% | ||||||
MTN Group Ltd. | 3,047,416 | 29,638,118 | ||||
Telkom South Africa Ltd. | 561,176 | 14,827,035 | ||||
44,465,153 | ||||||
TRANSPORTATION – 0.73% | ||||||
Grindrod Ltd. | 755,771 | 1,684,459 | ||||
Super Group Ltd. | 659,164 | 1,333,447 | ||||
3,017,906 | ||||||
TOTAL COMMON STOCKS | 412,220,128 | |||||
SHORT-TERM INVESTMENTS – 0.09% | ||||||
MONEY MARKET FUNDS – 0.09% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%2,3 | 365,084 | 365,084 | ||||
365,084 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 365,084 | |||||
TOTAL INVESTMENTS IN SECURITIES – 100.01% | 412,585,212 | |||||
Other Assets, Less Liabilities – (0.01)% | (51,504 | ) | ||||
NET ASSETS – 100.00% | $ | 412,533,708 | ||||
1 | Non-income earning security. |
2 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
3 | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 55 |
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 97.34% | |||||
ADVERTISING – 0.37% | |||||
Cheil Communications Inc. | 31,520 | $ | 6,849,351 | ||
6,849,351 | |||||
AEROSPACE & DEFENSE – 0.23% | |||||
Hanjin Heavy Industries & Construction | |||||
Co. Ltd. | 165,480 | 4,192,387 | |||
4,192,387 | |||||
AGRICULTURE – 2.00% | |||||
KT&G Corp. | 622,520 | 36,863,955 | |||
36,863,955 | |||||
AIRLINES – 0.43% | |||||
Korean Air Co. Ltd. | 236,400 | 7,912,461 | |||
7,912,461 | |||||
AUTO MANUFACTURERS – 5.77% | |||||
Hyundai Motor Co. Ltd. | 969,240 | 82,949,376 | |||
Kia Motors Corp. | 1,071,680 | 23,287,794 | |||
106,237,170 | |||||
AUTO PARTS & EQUIPMENT – 1.97% | |||||
Hankook Tire Co. Ltd. | 577,834 | 7,379,137 | |||
Hyundai Mobis | 342,036 | 28,849,380 | |||
36,228,517 | |||||
BANKS – 9.29% | |||||
Daegu Bank | 701,320 | 10,978,439 | |||
Kookmin Bank | 1,922,729 | 147,719,447 | |||
Korea Exchange Bank1 | 661,920 | 9,543,646 | |||
Pusan Bank | 220,640 | 2,942,624 | |||
171,184,156 | |||||
BEVERAGES – 0.37% | |||||
Hite Brewery Co. Ltd.2 | 47,280 | 6,865,582 | |||
6,865,582 | |||||
CHEMICALS – 1.70% | |||||
Hanwha Chemical Corp. | 267,920 | 3,711,147 | |||
Honam Petrochemical Corp. | 77,860 | 4,594,622 | |||
KCC Corp. | 29,159 | 5,810,779 | |||
LG Chem Ltd. | 275,800 | 13,960,422 | |||
LG Petrochemical Co. Ltd. | 82,724 | 1,891,321 | |||
Samsung Fine Chemicals Co. Ltd. | 39,400 | 1,284,253 | |||
31,252,544 | |||||
COMMERCIAL SERVICES – 0.45% | |||||
S1 Corp. | 198,289 | 8,270,550 | |||
8,270,550 | |||||
COMPUTERS – 0.00% | |||||
Trigem Computer Inc.1,3 | 7 | — | |||
— | |||||
COSMETICS & PERSONAL CARE – 0.60% | |||||
Amorepacific Corp. | 31,520 | 11,020,639 | |||
11,020,639 | |||||
DISTRIBUTION & WHOLESALE – 1.54% | |||||
Hyosung Corp.1 | 5 | 77 | |||
LG International Corp. | 260,040 | 6,159,547 | |||
Samsung Corp. | 858,920 | 22,291,230 | |||
28,450,854 | |||||
DIVERSIFIED FINANCIAL SERVICES – 8.20% | |||||
Daewoo Securities Co. Ltd.1,2 | 567,360 | 10,079,259 | |||
Daishin Securities Co. Ltd. | 204,880 | 4,726,377 | |||
Hana Financial Group Inc. | 654,041 | 27,953,349 | |||
Hyundai Securities Co. Ltd.1,2 | 724,960 | 11,647,143 | |||
Korea Investment Holdings Co. Ltd. | 189,125 | 7,362,436 | |||
Samsung Securities Co. | 330,960 | 19,768,980 | |||
Shinhan Financial Group Ltd. | 1,379,000 | 54,322,091 | |||
Woori Investment & Securities Co.2 | 630,400 | 15,224,387 | |||
151,084,022 | |||||
ELECTRIC – 3.60% | |||||
Korea Electric Power Corp. | 1,536,600 | 66,385,551 | |||
66,385,551 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 25.88% | |||||
LG Electronics Inc. | 661,926 | 54,876,460 | |||
LS Cable Ltd. | 112,350 | 3,806,710 | |||
Samsung Electronics Co. Ltd. | 591,000 | 418,143,151 | |||
476,826,321 | |||||
ELECTRONICS – 5.09% | |||||
Daeduck Electronics Co. Ltd. | 858,921 | 7,448,110 | |||
LG.Philips LCD Co. Ltd.1 | 693,440 | 31,422,616 | |||
Samsung Electro-Mechanics Co. Ltd.1,2 | 732,840 | 30,453,238 | |||
Samsung SDI Co. Ltd. | 275,800 | 24,540,803 | |||
93,864,767 |
56 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2006
Security | Shares | Value | |||
ENGINEERING & CONSTRUCTION – 2.18% | |||||
Daelim Industrial Co. Ltd. | 149,720 | $ | 10,053,289 | ||
Daewoo Engineering & Construction Co. Ltd. | 732,840 | 9,585,034 | |||
GS Engineering & Construction Corp. | 181,240 | 9,836,610 | |||
Hyundai Engineering & Construction Co. Inc.1,2 | 220,640 | 10,736,601 | |||
40,211,534 | |||||
FOOD – 1.01% | |||||
CJ Corp. | 110,320 | 13,974,624 | |||
Nong Shim Co. Ltd. | 15,762 | 4,650,683 | |||
18,625,307 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.00% | |||||
GS Holdings Corp. | 2 | 54 | |||
LG Corp. | 3 | 105 | |||
159 | |||||
HOME BUILDERS – 0.74% | |||||
Hyundai Development Co. | 299,440 | 13,661,372 | |||
13,661,372 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.25% | |||||
LG Household & Health Care Ltd. | 70,920 | 4,564,882 | |||
4,564,882 | |||||
INSURANCE – 1.70% | |||||
Samsung Fire & Marine Insurance Co. Ltd. | 244,280 | 31,321,174 | |||
31,321,174 | |||||
INTERNET – 1.77% | |||||
Daum Communications Corp.1 | 78,804 | 3,327,460 | |||
NCsoft Corp.1 | 94,564 | 6,388,670 | |||
NHN Corp.1 | 80,376 | 22,945,651 | |||
32,661,781 | |||||
IRON & STEEL – 5.46% | |||||
Dongkuk Steel Mill Co. Ltd. | 141,840 | 2,797,360 | |||
POSCO | 412,854 | 97,792,400 | |||
100,589,760 | |||||
LODGING – 0.74% | |||||
Kangwon Land Inc. | 685,562 | 13,697,119 | |||
13,697,119 | |||||
MACHINERY - DIVERSIFIED – 0.38% | |||||
Doosan Infracore Co. Ltd. | 409,760 | 6,941,866 | |||
6,941,866 | |||||
MANUFACTURING – 0.53% | |||||
Cheil Industries Inc. | 252,160 | 9,777,368 | |||
9,777,368 | |||||
MINING – 0.06% | |||||
Poongsan Corp.2 | 55,160 | 1,195,796 | |||
1,195,796 | |||||
OIL & GAS – 3.07% | |||||
SK Corp. | 603,589 | 37,296,952 | |||
S-Oil Corp. | 267,920 | 19,259,337 | |||
56,556,289 | |||||
PHARMACEUTICALS – 0.38% | |||||
Dong-A Pharmaceutical Co. Ltd. | 9 | 640 | |||
YuHan Corp. | 39,409 | 7,041,670 | |||
7,042,310 | |||||
RETAIL – 3.62% | |||||
Hyundai Department Store Co. Ltd. | 94,560 | 10,176,642 | |||
Lotte Shopping Co. Ltd. | 35,200 | 15,225,541 | |||
Shinsegae Co. Ltd. | 86,680 | 41,242,183 | |||
�� | 66,644,366 | ||||
SHIPBUILDING – 3.55% | |||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd. | 591,000 | 16,037,951 | |||
Hyundai Heavy Industries Co. Ltd. | 291,560 | 23,210,698 | |||
Hyundai Mipo Dockyard | 78,800 | 6,329,969 | |||
Samsung Heavy Industries Co. Ltd. | 1,134,720 | 19,749,504 | |||
65,328,122 | |||||
TELECOMMUNICATIONS – 4.05% | |||||
KT Corp. | 496,440 | 19,709,333 | |||
KT Corp. ADR | 472,800 | 9,654,576 | |||
SK Telecom Co. Ltd. | 126,380 | 26,356,282 | |||
SK Telecom Co. Ltd. ADR | 781,696 | 18,877,958 | |||
74,598,149 | |||||
TRANSPORTATION – 0.36% | |||||
Hanjin Shipping Co. Ltd.2 | 277,060 | 6,548,431 | |||
6,548,431 | |||||
TOTAL COMMON STOCKS | 1,793,454,612 |
SCHEDULESOF INVESTMENTS | 57 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
PREFERRED STOCKS – 1.62% | ||||||
AUTO MANUFACTURERS – 0.64% | ||||||
Hyundai Motor Co. Ltd. | 220,640 | $ | 11,861,388 | |||
11,861,388 | ||||||
ELECTRICAL COMPONENTS & EQUIPMENT – 0.98% | ||||||
LG Electronics Inc. | 267,920 | 13,796,087 | ||||
Samsung Electronics Co. Ltd. | 7,880 | 4,219,979 | ||||
18,016,066 | ||||||
TOTAL PREFERRED STOCKS | 29,877,454 | |||||
SHORT-TERM INVESTMENTS – 2.19% | ||||||
CERTIFICATES OF DEPOSIT4 – 0.02% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 172,015 | 172,015 | |||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 275,223 | 275,223 | ||||
447,238 | ||||||
COMMERCIAL PAPER4 – 0.07% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 172,015 | 170,583 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 103,209 | 102,590 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 172,015 | 170,595 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 98,736 | 98,179 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 172,015 | 170,434 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 361,231 | 359,811 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 206,417 | 205,559 | ||||
1,277,751 | ||||||
MEDIUM-TERM NOTES4 – 0.06% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 106,649 | 106,645 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 206,417 | 206,414 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 344,029 | 344,966 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 430,036 | 430,049 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 68,806 | 67,907 | ||||
1,155,981 | ||||||
MONEY MARKET FUNDS – 0.20% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%5,6 | 3,678,378 | 3,678,378 | ||||
3,678,378 | ||||||
REPURCHASE AGREEMENTS4– 0.49% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $516,110 (collateralized by non-U.S. Government debt securities, value $568,576, 0.00% to 9.40%, 11/15/15 to 6/12/47).7 | $ | 516,044 | 516,044 | |||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $1,720,363 (collateralized by U.S. Government obligations, value $1,758,011, 3.69% to 10.00%, 5/1/09 to 1/1/36). | 1,720,145 | 1,720,145 | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $860,183 (collateralized by non-U.S. Government debt securities, value $904,526, 1.01%, 9/19/35). 7 | 860,073 | 860,073 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $1,720,363 (collateralized by U.S. Government obligations, value $1,757,365, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 1,720,145 | 1,720,145 |
58 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $1,720,370 (collateralized by non-U.S. Government debt securities, value $1,809,052, 0.00% to 10.00%, 8/15/07 to 2/1/16).7 | $ | 1,720,145 | $ | 1,720,145 | ||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $412,887 (collateralized by U.S. Government obligations, value $ 421,776, 3.99% to 5.51%, 7/1/32 to 2/1/36). | 412,835 | 412,835 | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $344,074 (collateralized by non-U.S. Government debt securities, value $354,931, 0.00% to 7.88%, 5/15/08 to 1/15/16).7 | 344,029 | 344,029 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $ 1,720,365 (collateralized by non-U.S. Government debt securities, value $1,806,298, 0.00% to 7.16%, 3/1/06 to 3/25/35).7 | 1,720,145 | 1,720,145 | ||||
9,013,561 | ||||||
TIME DEPOSITS4 – 0.14% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 688,058 | 688,058 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 1,204,102 | 1,204,102 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 619,070 | 619,070 | ||||
2,511,230 | ||||||
VARIABLE & FLOATING RATE NOTES 4 – 1.21% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/078 | 966,722 | 966,876 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 808,468 | 808,464 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 137,612 | 137,612 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 103,209 | 103,291 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/068 | 1,118,095 | 1,118,383 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/078 | 223,619 | 223,619 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/078 | 344,029 | 344,029 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/068 | 443,798 | 443,789 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/078 | 344,029 | 344,029 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/068 | 925,438 | 925,424 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/068 | 86,007 | 86,007 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 344,029 | 344,029 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/068 | 86,007 | 86,005 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/068 | 344,029 | 344,029 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/078 | 688,058 | 688,058 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/068 | 68,806 | 68,804 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 154,813 | 154,930 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 86,007 | 86,007 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 344,029 | 344,029 |
SCHEDULESOF INVESTMENTS | 59 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
HBOS Treasury Services PLC | |||||||
4.57%, 01/24/078 | $ | 344,029 | $ | 344,029 | |||
Holmes Financing PLC | |||||||
4.54%, 12/15/068 | 946,080 | 946,080 | |||||
HSBC Bank USA N.A. | |||||||
4.70%, 05/04/06 | 120,410 | 120,427 | |||||
K2 USA LLC | |||||||
4.53%, 06/02/068 | 309,626 | 309,618 | |||||
Leafs LLC | |||||||
4.57%, 01/22/07 - 02/20/078 | 360,446 | 360,446 | |||||
Links Finance LLC | |||||||
4.56%, 03/15/068 | 275,223 | 275,225 | |||||
Marshall & Ilsley Bank | |||||||
4.55%, 02/15/07 | 189,216 | 189,216 | |||||
Metropolitan Life Global Funding I | |||||||
4.56% - 4.96%, 08/28/06 - 03/06/078 | 1,028,647 | 1,029,071 | |||||
Mound Financing PLC | |||||||
4.53%, 11/08/068 | 688,058 | 688,058 | |||||
Natexis Banques Populaires | |||||||
4.55%, 03/15/078 | 258,022 | 258,022 | |||||
Nationwide Building Society | |||||||
4.58% - 4.60%, 01/05/07 - 01/26/078 | 928,879 | 928,911 | |||||
Nordea Bank AB | |||||||
4.55%, 02/09/078 | 602,051 | 602,051 | |||||
Northern Rock PLC | |||||||
4.61%, 02/02/078 | 412,835 | 412,848 | |||||
Permanent Financing PLC | |||||||
4.53%, 03/10/06 - 06/12/068 | 935,759 | 935,760 | |||||
Pfizer Investment Capital PLC | |||||||
4.53%, 02/15/078 | 860,073 | 860,073 | |||||
Principal Life Income Funding Trusts | |||||||
4.70%, 05/10/06 | 258,022 | 258,024 | |||||
Sedna Finance Inc. | |||||||
4.54%, 09/20/068 | 103,209 | 103,209 | |||||
Sigma Finance Inc. | |||||||
4.53% - 4.55%, 03/20/06 - 08/15/068 | 381,872 | 381,866 | |||||
Skandinaviska Enskilda Bank NY | |||||||
4.56%, 03/19/078 | 344,029 | 344,029 | |||||
Societe Generale | |||||||
4.54%, 03/02/078 | 240,820 | 240,820 | |||||
Strips III LLC | |||||||
4.62%, 07/24/068,9 | 88,758 | 88,758 | |||||
SunTrust Bank | |||||||
4.62%, 04/28/06 | 516,044 | 516,044 | |||||
Tango Finance Corp. | |||||||
4.53% - 4.54%, 05/25/06 - 09/27/068 | 767,185 | 767,148 | |||||
Toyota Motor Credit Corp. | |||||||
4.57%, 04/10/06 | 154,813 | 154,813 | |||||
UniCredito Italiano SpA | |||||||
4.43%, 06/14/06 | 447,238 | 447,192 | |||||
Union Hamilton Special Funding LLC | |||||||
4.52%, 03/28/068 | 344,029 | 344,029 | |||||
US Bank N.A. | |||||||
4.54%, 09/29/06 | 154,813 | 154,790 | |||||
Variable Funding Capital Corp. | |||||||
4.52%, 03/09/06 - 03/13/06 | 516,044 | 516,044 | |||||
Wachovia Asset Securitization Inc. | |||||||
4.57%, 03/26/068 | 656,579 | 656,579 | |||||
Wells Fargo & Co. | |||||||
4.56%, 03/15/078 | 172,015 | 172,028 | |||||
WhistleJacket Capital Ltd. | |||||||
4.53% - 4.56%, 06/22/06 - 07/28/068 | 172,015 | 172,005 | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/068 | 361,231 | 361,232 | |||||
Winston Funding Ltd. | |||||||
4.68%, 04/23/068 | 245,637 | 245,637 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 516,044 | 516,043 | |||||
22,317,539 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 40,401,678 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 101.15% | 1,863,733,744 | ||||||
Other Assets, Less Liabilities – (1.15)% | (21,276,930 | ) | |||||
NET ASSETS – 100.00% | $ | 1,842,456,814 | |||||
60 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2006
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 | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
4 | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
5 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
6 | The rate quoted is the annualized seven-day yield of the fund at period end. |
7 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
8 | This security or a portion of these securities 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. |
9 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
SCHEDULESOF INVESTMENTS | 61 |
Schedule of Investments (Unaudited)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.91% | |||||
AIRLINES – 0.40% | |||||
China Airlines | 9,666,319 | $ | 4,319,244 | ||
EVA Airways Corp. | 9,704,557 | 3,872,791 | |||
8,192,035 | |||||
APPAREL – 0.45% | |||||
Pou Chen Corp. | 12,888,243 | 9,234,115 | |||
9,234,115 | |||||
AUTO MANUFACTURERS – 0.51% | |||||
China Motor Co. Ltd. | 3,235,423 | 3,649,142 | |||
Yulon Motor Co. Ltd. | 6,506,447 | 6,706,850 | |||
10,355,992 | |||||
AUTO PARTS & EQUIPMENT – 0.12% | |||||
Cheng Shin Rubber Industry Co. Ltd. | 3,412,102 | 2,528,807 | |||
2,528,807 | |||||
BANKS – 9.45% | |||||
Chang Hwa Commercial Bank Ltd. | 32,220,446 | 18,567,429 | |||
Chinatrust Financial Holding Co. Ltd. | 45,108,470 | 37,948,914 | |||
E.Sun Financial Holding Co. Ltd. | 19,566,253 | 13,174,608 | |||
First Financial Holding Co. Ltd. | 35,442,602 | 27,468,959 | |||
Hua Nan Financial Holdings Co. Ltd. | 28,998,965 | 20,553,649 | |||
Mega Financial Holding Co. Ltd. | 74,106,136 | 56,406,575 | |||
Taishin Financial Holdings Co. Ltd. | 32,220,439 | 19,709,272 | |||
193,829,406 | |||||
BUILDING MATERIALS – 1.04% | |||||
Asia Cement Corp. | 9,666,649 | 6,419,509 | |||
Taiwan Cement Corp. | 12,888,738 | 9,730,947 | |||
Taiwan Glass Industrial Corp. | 6,444,341 | 5,083,901 | |||
21,234,357 | |||||
CHEMICALS – 7.74% | |||||
Eternal Chemical Co. Ltd. | 3,353,010 | 4,034,916 | |||
Formosa Chemicals & Fibre Co. | 20,117,401 | 31,678,994 | |||
Formosa Plastic Co. | 35,442,497 | 56,248,397 | |||
Nan Ya Plastic Corp. | 38,664,085 | 54,927,176 | |||
Oriental Union Chemical Corp. | 3,569,382 | 2,309,888 | |||
Taiwan Fertilizer Co. Ltd. | 6,444,000 | 7,883,601 | |||
Taiwan Styrene Monomer Corp. | 3,300,696 | 1,500,293 | |||
158,583,265 | |||||
COMMERCIAL SERVICES – 0.26% | |||||
Taiwan Secom Co. Ltd. | 3,248,515 | 5,305,659 | |||
5,305,659 | |||||
COMPUTERS – 9.75% | |||||
Acer Inc. | 19,332,533 | 42,894,328 | |||
Advantech Co. Ltd. | 3,222,731 | 8,808,993 | |||
Benq Corp. | 16,110,019 | 15,911,191 | |||
CMC Magnetics Corp.1 | 22,554,400 | 7,193,665 | |||
Compal Electronics Inc. | 25,776,214 | 24,147,452 | |||
Foxconn Technology Co. Ltd. | 3,222,100 | 15,737,904 | |||
High Tech Computer Corp. | 716,000 | 15,599,513 | |||
Inventec Co. Ltd. | 9,666,620 | 5,942,869 | |||
Lite-On Technology Corp. | 16,110,011 | 21,843,746 | |||
Mitac International | 6,548,407 | 9,282,653 | |||
Quanta Computer Inc. | 16,110,381 | 24,649,248 | |||
Ritek Corp.1 | 19,332,389 | 6,166,014 | |||
Systex Corp.1 | 6,520,887 | 1,804,520 | |||
199,982,096 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.83% | |||||
Fubon Financial Holding Co. Ltd. | 32,220,000 | 28,893,299 | |||
Fuhwa Financial Holdings Co. Ltd. | 16,110,821 | 6,106,627 | |||
Polaris Securities Co. Ltd. | 9,666,372 | 3,902,235 | |||
SinoPac Financial Holdings Co. Ltd. | 45,108,193 | 23,978,562 | |||
Waterland Financial Holdings | 12,888,000 | 4,209,883 | |||
Yuanta Core Pacific Securities Co. Ltd. | 19,533,644 | 11,437,088 | |||
78,527,694 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 1.98% | |||||
Delta Electronics Inc. | 9,666,414 | 23,175,206 | |||
Pacific Electric Wire & Cable Co. Ltd.1,2 | 986 | — | |||
Phoenixtec Power Co. Ltd. | 3,224,438 | 3,129,992 | |||
Tatung Co. Ltd.1 | 32,220,120 | 7,982,921 | |||
Walsin Lihwa Corp. | 19,332,069 | 6,314,847 | |||
40,602,966 | |||||
ELECTRONICS – 19.51% | |||||
Asustek Computer Inc. | 19,332,688 | 54,869,434 | |||
AU Optronics Corp. | 41,886,716 | 68,540,843 | |||
Chi Mei Optoelectronics Corp. | 25,784,428 | 39,490,488 | |||
Chunghwa Picture Tubes Ltd. | 48,330,105 | 12,689,250 |
62 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Compeq Manufacturing Co. Ltd.1 | 6,444,200 | $ | 2,929,137 | ||
Elitegroup Computer Systems Co. Ltd.1 | 3,259,215 | 2,089,080 | |||
Gigabyte Technology Co. Ltd. | 3,288,017 | 2,786,412 | |||
HannStar Display Corp.1 | 41,990,218 | 7,841,504 | |||
Hon Hai Precision Industry Co. Ltd. | 25,776,814 | 163,634,570 | |||
Micro-Star International Co. Ltd. | 3,338,396 | 1,908,360 | |||
Optimax Technology Corp. | 3,222,157 | 4,006,534 | |||
Quanta Display Inc. | 25,776,541 | 8,697,959 | |||
Synnex Technology International Corp. | 6,444,679 | 7,993,662 | |||
Wintek Corp. | 6,444,359 | 9,155,019 | |||
Ya Hsin Industrial Co. Ltd. | 6,444,270 | 5,977,490 | |||
Yageo Corp.1 | 19,332,100 | 7,416,978 | |||
400,026,720 | |||||
FOOD – 0.72% | |||||
Uni-President Enterprises Co. | 25,776,637 | 14,695,237 | |||
14,695,237 | |||||
FOREST PRODUCTS & PAPER – 0.18% | |||||
Yuen Foong Yu Paper Manufacturing Co. Ltd. | 9,666,322 | 3,708,593 | |||
3,708,593 | |||||
HAND & MACHINE TOOLS – 0.12% | |||||
Shihlin Electric & Engineering Corp. | 3,222,080 | 2,447,552 | |||
2,447,552 | |||||
HOME FURNISHINGS – 0.44% | |||||
Nien Made Enterprise Co. Ltd. | 3,222,733 | 4,101,597 | |||
Teco Electric and Machinery Co. Ltd.1 | 16,110,092 | 4,989,335 | |||
9,090,932 | |||||
INSURANCE – 4.76% | |||||
Cathay Financial Holding Co. Ltd. | 41,887,055 | 80,803,983 | |||
Shin Kong Financial Holding Co. Ltd. | 19,332,837 | 16,830,330 | |||
97,634,313 | |||||
INVESTMENT COMPANIES – 1.57% | |||||
China Development Financial Holding Co.1 | 83,772,338 | 32,269,279 | |||
32,269,279 | |||||
IRON & STEEL – 3.01% | |||||
China Steel Corp. | 67,662,742 | 61,614,891 | |||
61,614,891 | |||||
LEISURE TIME – 0.30% | |||||
Giant Manufacturing Co. Ltd. | 3,222,914 | 6,058,389 | |||
6,058,389 | |||||
MANUFACTURING – 0.20% | |||||
Premier Image Technology Corp. | 3,300,262 | 4,149,418 | |||
4,149,418 | |||||
METAL FABRICATE & HARDWARE – 0.19% | |||||
Yieh Phui Enterprise | 9,666,078 | 3,976,584 | |||
3,976,584 | |||||
MULTIPLE UTILITIES – 0.39% | |||||
Fu Sheng Industrial Co. Ltd. | 6,444,320 | 7,883,993 | |||
7,883,993 | |||||
OFFICE& BUSINESS EQUIPMENT – 0.18% | |||||
Kinpo Electronics Inc. | 9,666,119 | 3,738,303 | |||
3,738,303 | |||||
REAL ESTATE – 0.23% | |||||
Cathay Real Estate Development Co. Ltd.1 | 9,666,493 | 4,706,571 | |||
4,706,571 | |||||
RETAIL – 0.34% | |||||
President Chain Store Corp. | 3,222,640 | 7,031,106 | |||
7,031,106 | |||||
SEMICONDUCTORS – 26.07% | |||||
Advanced Semiconductor Engineering Inc. | 28,998,690 | 24,127,968 | |||
Macronix International Co. Ltd.1 | 38,664,200 | 5,004,226 | |||
MediaTek Inc. | 6,444,239 | 66,625,851 | |||
Realtek Semiconductor Corp. | 6,444,003 | 7,129,003 | |||
Siliconware Precision Industries Co. Ltd. | 16,110,151 | 20,801,385 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 167,544,475 | 314,431,474 | |||
United Microelectronics Corp. | 141,768,640 | 83,661,868 | |||
Via Technologies Inc.1 | 6,578,861 | 3,831,697 | |||
Winbond Electronics Corp.1 | 28,998,280 | 8,927,222 | |||
534,540,694 |
SCHEDULESOF INVESTMENTS | 63 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
TELECOMMUNICATIONS – 4.35% | |||||
Accton Technology Corp.1 | 6,444,259 | $ | 3,405,773 | ||
Chunghwa Telecom Co. Ltd. | 32,220,000 | 58,878,785 | |||
D-Link Corp. | 3,395,638 | 3,892,628 | |||
Taiwan Cellular Corp. | 19,332,920 | 17,872,994 | |||
Zyxel Communications Corp. | 3,222,071 | 5,143,319 | |||
89,193,499 | |||||
TEXTILES – 0.96% | |||||
Far Eastern Textile Ltd. | 19,332,351 | 14,327,762 | |||
Formosa Taffeta Co. Ltd. | 6,444,152 | 3,326,283 | |||
Nien Hsing Textile Co. Ltd. | 3,222,800 | 2,090,567 | |||
19,744,612 | |||||
TRANSPORTATION – 0.86% | |||||
Evergreen Marine Corp. Ltd. | 6,801,194 | 4,422,280 | |||
U-Ming Marine Transport Corp. | 3,222,800 | 3,257,510 | |||
Wan Hai Lines Ltd. | 6,444,177 | 3,961,767 | |||
Yang Ming Marine Transport Corp. | 9,666,667 | 5,942,898 | |||
17,584,455 | |||||
TOTAL COMMON STOCKS | 2,048,471,533 | ||||
SHORT-TERM INVESTMENTS – 0.06% | |||||
MONEY MARKET FUNDS – 0.06% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | |||||
4.51%3,4 | 1,270,794 | 1,270,794 | |||
1,270,794 | |||||
TOTAL SHORT-TERM INVESTMENTS | 1,270,794 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.97% | 2,049,742,327 | ||||
Other Assets, Less Liabilities – 0.03% | 665,957 | ||||
NET ASSETS – 100.00% | $ | 2,050,408,284 | |||
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. |
4 | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to the financial statements.
64 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2006
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 | $ | 421,273,119 | $ | 1,260,004,988 | $ | 792,361,852 | $ | 10,081,998,635 | $ | 682,065,993 | $ | 308,621,908 | |||||||||||
Affiliated issuersa | $ | 72,364 | $ | 2,525,013 | $ | 394,916 | $ | 73,287,150 | $ | 696,030 | $ | 222,045 | |||||||||||
Foreign currencies, at cost | $ | 1,393,993 | $ | — | $ | 1,162,188 | $ | 1,368,191 | $ | 261,045 | $ | 126,302 | |||||||||||
Investments in securities, at value (including securities on loanb) (Note 1): | |||||||||||||||||||||||
Unaffiliated issuers | $ | 508,429,576 | $ | 1,941,371,974 | $ | 959,995,302 | $ | 13,074,994,242 | $ | 800,996,038 | $ | 394,505,003 | |||||||||||
Affiliated issuersa | 72,364 | 2,525,013 | 394,916 | 83,906,804 | 696,030 | 222,045 | |||||||||||||||||
Foreign currencies, at value | 1,402,602 | — | 1,176,018 | 1,382,966 | 260,943 | 126,507 | |||||||||||||||||
Receivables: | |||||||||||||||||||||||
Investment securities sold | 2,013,745 | 26,234,358 | 970,039 | — | — | 652,458 | |||||||||||||||||
Dividends and interest | 3,350,859 | 8,350,837 | 764,177 | 23,345,406 | 148,553 | 263,174 | |||||||||||||||||
Capital shares sold | — | 45,843,673 | — | — | 162,849 | — | |||||||||||||||||
Total Assets | 515,269,146 | 2,024,325,855 | 963,300,452 | 13,183,629,418 | 802,264,413 | 395,769,187 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investment securities purchased | 2,028,272 | 67,093,116 | — | — | — | 634,217 | |||||||||||||||||
Collateral for securities on loan (Note 5) | 319,872 | — | — | 760,661,523 | — | — | |||||||||||||||||
Capital shares redeemed | — | — | — | 115,297 | — | — | |||||||||||||||||
Foreign taxes | — | — | — | 4,234 | — | — | |||||||||||||||||
Investment advisory fees (Note 2) | 225,202 | 1,017,892 | 409,127 | 7,131,516 | 347,077 | 172,043 | |||||||||||||||||
Total Liabilities | 2,573,346 | 68,111,008 | 409,127 | 767,912,570 | 347,077 | 806,260 | |||||||||||||||||
NET ASSETS | $ | 512,695,800 | $ | 1,956,214,847 | $ | 962,891,325 | $ | 12,415,716,848 | $ | 801,917,336 | $ | 394,962,927 | |||||||||||
Net assets consist of: | |||||||||||||||||||||||
Paid-in capital | $ | 436,515,795 | $ | 1,322,553,268 | $ | 778,296,094 | $ | 9,146,610,069 | $ | 701,680,275 | $ | 358,556,851 | |||||||||||
Undistributed (distributions in excess of) net investment income | (46,978 | ) | 6,897,497 | 186,932 | (2,513,541 | ) | (1,290,398 | ) | (1,714,162 | ) | |||||||||||||
Undistributed net realized gain (accumulated net realized loss) | (10,957,262 | ) | (55,217,123 | ) | 16,751,231 | 267,990,004 | (17,402,493 | ) | (47,763,199 | ) | |||||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 87,184,245 | 681,981,205 | 167,657,068 | 3,003,630,316 | 118,929,952 | 85,883,437 | |||||||||||||||||
NET ASSETS | $ | 512,695,800 | $ | 1,956,214,847 | $ | 962,891,325 | $ | 12,415,716,848 | $ | 801,917,336 | $ | 394,962,927 | |||||||||||
Shares outstanding | 25,800,000 | 46,450,000 | 41,400,000 | 127,200,000 | 60,150,000 | 53,850,000 | |||||||||||||||||
Net asset value per share | $ | 19.87 | $ | 42.11 | $ | 23.26 | $ | 97.61 | $ | 13.33 | $ | 7.33 | |||||||||||
a | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market values of $303,043, $–, $–, $699,930,752, $– and $–, respectively. See Note 5. |
See notes to the financial statements.
FINANCIAL STATEMENTS | 65 |
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2006
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 | $ | 417,618,857 | $ | 1,441,249,724 | $ | 398,290,092 | $ | 320,929,425 | $ | 1,335,485,448 | $ | 1,846,612,194 | ||||||||||||
Affiliated issuersa | $ | 367,620 | $ | 18,881 | $ | 220,334 | $ | 365,084 | $ | 3,678,378 | $ | 1,270,794 | ||||||||||||
Foreign currencies, at cost | $ | 311,903 | $ | 5,125,250 | $ | 212,382 | $ | 72,369 | $ | — | $ | 1,788,776 | ||||||||||||
Investments in securities, at value (including securities on loanb) (Note 1): | ||||||||||||||||||||||||
Unaffiliated issuers | $ | 502,173,570 | $ | 1,859,058,148 | $ | 489,753,978 | $ | 412,220,128 | $ | 1,860,055,366 | $ | 2,048,471,533 | ||||||||||||
Affiliated issuersa | 367,620 | 18,881 | 220,334 | 365,084 | 3,678,378 | 1,270,794 | ||||||||||||||||||
Foreign currencies, at value | 313,404 | 5,161,583 | 212,745 | 71,071 | — | 1,788,776 | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Investment securities sold | 10,225,385 | 7,548,202 | 2,649,057 | 483,347 | 15,219,459 | — | ||||||||||||||||||
Dividends and interest | 97,583 | 8,674,771 | 102,931 | 31,327 | 16,406,809 | 5,368 | ||||||||||||||||||
Capital shares sold | — | — | — | 7,520 | 110,400 | — | ||||||||||||||||||
Total Assets | 513,177,562 | 1,880,461,585 | 492,939,045 | 413,178,477 | 1,895,470,412 | 2,051,536,471 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Investment securities purchased | 10,121,664 | 8,860,658 | 2,202,025 | 410,189 | 15,294,692 | — | ||||||||||||||||||
Collateral for securities on loan (Note 5) | 31,314,795 | 8,489,869 | 1,310,562 | — | 36,723,300 | — | ||||||||||||||||||
Investment advisory fees (Note 2) | 225,045 | 702,922 | 215,151 | 234,580 | 995,606 | 1,128,187 | ||||||||||||||||||
Total Liabilities | 41,661,504 | 18,053,449 | 3,727,738 | 644,769 | 53,013,598 | 1,128,187 | ||||||||||||||||||
NET ASSETS | $ | 471,516,058 | $ | 1,862,408,136 | $ | 489,211,307 | $ | 412,533,708 | $ | 1,842,456,814 | $ | 2,050,408,284 | ||||||||||||
Net assets consist of: | ||||||||||||||||||||||||
Paid-in capital | $ | 346,593,973 | $ | 1,449,192,626 | $ | 413,634,152 | $ | 312,850,599 | $ | 1,340,643,180 | $ | 1,939,297,421 | ||||||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) | (37,775 | ) | (8,423,393 | ) | (1,860,651 | ) | (158,701 | ) | 11,948,874 | (2,933,097 | ) | |||||||||||||
Undistributed net realized gain (accumulated net realized loss) | 40,401,046 | 3,746,409 | (14,027,252 | ) | 8,552,611 | (35,376,426 | ) | (87,815,379 | ) | |||||||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 84,558,814 | 417,892,494 | 91,465,058 | 91,289,199 | 525,241,186 | 201,859,339 | ||||||||||||||||||
NET ASSETS | $ | 471,516,058 | $ | 1,862,408,136 | $ | 489,211,307 | $ | 412,533,708 | $ | 1,842,456,814 | $ | 2,050,408,284 | ||||||||||||
Shares outstanding | 12,300,000 | 17,900,000 | 57,100,000 | 3,850,000 | 39,400,000 | 161,100,000 | ||||||||||||||||||
Net asset value per share | $ | 38.33 | $ | 104.05 | $ | 8.57 | $ | 107.15 | $ | 46.76 | $ | 12.73 | ||||||||||||
a | The Funds’ investment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market values of $25,681,791, $8,017,351, $1,211,670, $–, $34,728,115 and $–, respectively. See Note 5. |
See notes to the financial statements.
66 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Operations (Unaudited)
iSHARES ®, INC .
Six months ended February 28, 2006
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 | |||||||||||||||||||||||
Dividends from unaffiliated issuersa | $ | 9,443,482 | $ | 19,093,238 | $ | 4,151,085 | $ | 65,052,499 | $ | 7,692,693 | $ | 8,203,146 | |||||||||||
Dividends from affiliated issuersb | — | — | — | 731,077 | — | — | |||||||||||||||||
Interest from affiliated issuersb | 2,830 | 50,404 | 7,383 | 182,501 | 6,375 | 5,420 | |||||||||||||||||
Securities lending incomec | 39,225 | 1,515 | — | 3,086,710 | 98,186 | — | |||||||||||||||||
Total investment income | 9,485,537 | 19,145,157 | 4,158,468 | 69,052,787 | 7,797,254 | 8,208,566 | |||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Investment advisory fees (Note 2) | 1,224,082 | 4,073,581 | 1,707,986 | 35,382,728 | 1,844,316 | 1,038,380 | |||||||||||||||||
Proxy fees | 16,687 | 17,643 | 14,588 | 174,862 | 26,612 | 13,719 | |||||||||||||||||
Foreign taxes (Note 1) | — | — | — | 1,875,370 | — | — | |||||||||||||||||
Total expenses | 1,240,769 | 4,091,224 | 1,722,574 | 37,432,960 | 1,870,928 | 1,052,099 | |||||||||||||||||
Less investment advisory fees waived | — | — | — | (134,578 | ) | — | — | ||||||||||||||||
Net expenses | 1,240,769 | 4,091,224 | 1,722,574 | 37,298,382 | 1,870,928 | 1,052,099 | |||||||||||||||||
Net investment income | 8,244,768 | 15,053,933 | 2,435,894 | 31,754,405 | 5,926,326 | 7,156,467 | |||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | |||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||
Investments in unaffiliated issuers | (1,412,659 | ) | (709,181 | ) | 3,656,112 | 155,653 | (4,150,821 | ) | (6,774,209 | ) | |||||||||||||
Investments in affiliated issuersb | — | — | — | 976,028 | — | — | |||||||||||||||||
In-kind redemptions | 1,153,522 | — | 28,336,866 | 303,829,753 | 2,840,925 | — | |||||||||||||||||
Foreign currency transactions | (51,565 | ) | 74,642 | 58,412 | 354,954 | 4,899 | 10,702 | ||||||||||||||||
Net realized gain (loss) | (310,702 | ) | (634,539 | ) | 32,051,390 | 305,316,388 | (1,304,997 | ) | (6,763,507 | ) | |||||||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||||||||||
Investments | 43,003,921 | 464,691,559 | 49,299,883 | 1,893,199,492 | 31,516,375 | 20,825,150 | |||||||||||||||||
Translation of assets and liabilities in foreign currencies | 72,646 | 564,062 | 2,425 | 39,028 | 7 | 2,796 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 43,076,567 | 465,255,621 | 49,302,308 | 1,893,238,520 | 31,516,382 | 20,827,946 | |||||||||||||||||
Net realized and unrealized gain | 42,765,865 | 464,621,082 | 81,353,698 | 2,198,554,908 | 30,211,385 | 14,064,439 | |||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 51,010,633 | $ | 479,675,015 | $ | 83,789,592 | $ | 2,230,309,313 | $ | 36,137,711 | $ | 21,220,906 | |||||||||||
a | Net of foreign withholding tax of $491,149, $2,043,148, $732,544, $4,071,175, $– 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 the financial statements.
FINANCIAL STATEMENTS | 67 |
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2006
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 | ||||||||||||||||||||||
Dividends from unaffiliated issuersa | $ | 4,425,643 | $ | 30,222,509 | $ | 4,017,364 | $ | 2,649,904 | $ | 15,777,256 | $ | 1,805,976 | ||||||||||
Interest from affiliated issuersb | 6,955 | 10,652 | 4,817 | 2,861 | 49,367 | 25,365 | ||||||||||||||||
Securities lending incomec | 54,278 | 232,018 | 84,220 | — | 336,974 | — | ||||||||||||||||
Total investment income | 4,486,876 | 30,465,179 | 4,106,401 | 2,652,765 | 16,163,597 | 1,831,341 | ||||||||||||||||
EXPENSES | ||||||||||||||||||||||
Investment advisory fees (Note 2) | 1,088,561 | 4,138,909 | 1,095,295 | 832,156 | 4,189,707 | 4,396,715 | ||||||||||||||||
Proxy fees | 9,395 | 53,661 | 13,072 | 6,679 | 24,989 | 33,056 | ||||||||||||||||
Foreign taxes (Note 1) | — | — | — | — | 27 | 139,094 | ||||||||||||||||
Total expenses | 1,097,956 | 4,192,570 | 1,108,367 | 838,835 | 4,214,723 | 4,568,865 | ||||||||||||||||
Net investment income (loss) | 3,388,920 | 26,272,609 | 2,998,034 | 1,813,930 | 11,948,874 | (2,737,524 | ) | |||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||||
Investments in unaffiliated issuers | 284,467 | (5,313,746 | ) | 377,907 | 468,283 | (3,274,047 | ) | (5,114,791 | ) | |||||||||||||
In-kind redemptions | 48,325,910 | 18,913,997 | 4,230,974 | 10,700,708 | — | — | ||||||||||||||||
Foreign currency transactions | 9,870 | (118,089 | ) | 7,094 | 6,443 | 13,461 | (287,419 | ) | ||||||||||||||
Net realized gain (loss) | 48,620,247 | 13,482,162 | 4,615,975 | 11,175,434 | (3,260,586 | ) | (5,402,210 | ) | ||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||
Investments | 49,797,703 | 129,435,138 | 47,617,899 | 39,291,841 | 306,694,728 | 144,232,095 | ||||||||||||||||
Translation of assets and liabilities in foreign currencies | 2,756 | 230,034 | 35,591 | (4,539 | ) | 671,268 | 264,972 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | 49,800,459 | 129,665,172 | 47,653,490 | 39,287,302 | 307,365,996 | 144,497,067 | ||||||||||||||||
Net realized and unrealized gain | 98,420,706 | 143,147,334 | 52,269,465 | 50,462,736 | 304,105,410 | 139,094,857 | ||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 101,809,626 | $ | 169,419,943 | $ | 55,267,499 | $ | 52,276,666 | $ | 316,054,284 | $ | 136,357,333 | ||||||||||
a. | Net of foreign withholding tax of $–, $2,814,306, $–, $–, $2,928,059 and $379,534, 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 the financial statements.
68 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Australia Index Fund | iShares MSCI Brazil Index Fund | iShares MSCI Canada Index Fund | ||||||||||||||||||||||
Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 8,244,768 | $ | 12,124,245 | $ | 15,053,933 | $ | 15,454,311 | $ | 2,435,894 | $ | 3,368,699 | ||||||||||||
Net realized gain (loss) | (310,702 | ) | 41,358,189 | (634,539 | ) | 5,767,383 | 32,051,390 | 65,992,553 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 43,076,567 | 25,410,296 | 465,255,621 | 178,499,755 | 49,302,308 | 56,852,456 | ||||||||||||||||||
Net increase in net assets resulting from operations | 51,010,633 | 78,892,730 | 479,675,015 | 199,721,449 | 83,789,592 | 126,213,708 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (16,397,050 | ) | (9,320,851 | ) | (20,219,476 | ) | (8,052,116 | ) | (4,108,502 | ) | (3,453,495 | ) | ||||||||||||
Total distributions to shareholders | (16,397,050 | ) | (9,320,851 | ) | (20,219,476 | ) | (8,052,116 | ) | (4,108,502 | ) | (3,453,495 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | 112,436,481 | 231,751,585 | 946,109,927 | 274,248,148 | 523,427,611 | 141,711,605 | ||||||||||||||||||
Cost of shares redeemed | (3,709,532 | ) | (110,966,622 | ) | (1,636,057 | ) | (123,135,627 | ) | (60,518,151 | ) | (169,468,858 | ) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | 108,726,949 | 120,784,963 | 944,473,870 | 151,112,521 | 462,909,460 | (27,757,253 | ) | |||||||||||||||||
INCREASE IN NET ASSETS | 143,340,532 | 190,356,842 | 1,403,929,409 | 342,781,854 | 542,590,550 | 95,002,960 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 369,355,268 | 178,998,426 | 552,285,438 | 209,503,584 | 420,300,775 | 325,297,815 | ||||||||||||||||||
End of period | $ | 512,695,800 | $ | 369,355,268 | $ | 1,956,214,847 | $ | 552,285,438 | $ | 962,891,325 | $ | 420,300,775 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (46,978 | ) | $ | 8,105,304 | $ | 6,897,497 | $ | 12,063,040 | $ | 186,932 | $ | 1,859,540 | |||||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | 5,800,000 | 13,800,000 | 26,900,000 | 12,300,000 | 23,500,000 | 7,900,000 | ||||||||||||||||||
Shares redeemed | (200,000 | ) | (6,800,000 | ) | (50,000 | ) | (5,050,000 | ) | (2,800,000 | ) | (9,900,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 5,600,000 | 7,000,000 | 26,850,000 | 7,250,000 | 20,700,000 | (2,000,000 | ) | |||||||||||||||||
See notes to the financial statements.
FINANCIAL STATEMENTS | 69 |
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 | ||||||||||||||||||||||
Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 31,754,405 | $ | 101,750,954 | $ | 5,926,326 | $ | 15,897,761 | $ | 7,156,467 | $ | 8,621,591 | ||||||||||||
Net realized gain (loss) | 305,316,388 | 270,957,406 | (1,304,997 | ) | 41,822,193 | (6,763,507 | ) | (5,786,512 | ) | |||||||||||||||
Net change in unrealized appreciation (depreciation) | 1,893,238,520 | 1,082,325,240 | 31,516,382 | 51,243,020 | 20,827,946 | 24,392,465 | ||||||||||||||||||
Net increase in net assets resulting from operations | 2,230,309,313 | 1,455,033,600 | 36,137,711 | 108,962,974 | 21,220,906 | 27,227,544 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (113,762,995 | ) | (45,604,575 | ) | (17,872,090 | ) | (14,195,028 | ) | (14,088,338 | ) | (6,156,574 | ) | ||||||||||||
Total distributions to shareholders | (113,762,995 | ) | (45,604,575 | ) | (17,872,090 | ) | (14,195,028 | ) | (14,088,338 | ) | (6,156,574 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | 4,061,151,874 | 4,407,630,562 | 155,526,412 | 251,633,472 | 67,081,681 | 155,029,612 | ||||||||||||||||||
Cost of shares redeemed | (762,839,394 | ) | (774,797,887 | ) | (9,859,535 | ) | (158,339,373 | ) | (66,826,302 | ) | (12,743,715 | ) | ||||||||||||
Net increase in net assets from capital share transactions | 3,298,312,480 | 3,632,832,675 | 145,666,877 | 93,294,099 | 255,379 | 142,285,897 | ||||||||||||||||||
INCREASE IN NET ASSETS | 5,414,858,798 | 5,042,261,700 | 163,932,498 | 188,062,045 | 7,387,947 | 163,356,867 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 7,000,858,050 | 1,958,596,350 | 637,984,838 | 449,922,793 | 387,574,980 | 224,218,113 | ||||||||||||||||||
End of period | $ | 12,415,716,848 | $ | 7,000,858,050 | $ | 801,917,336 | $ | 637,984,838 | $ | 394,962,927 | $ | 387,574,980 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (2,513,541 | ) | $ | 79,495,049 | $ | (1,290,398 | ) | $ | 10,655,366 | $ | (1,714,162 | ) | $ | 5,217,709 | |||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | 46,350,000 | 64,200,000 | 11,850,000 | 21,225,000 | 9,300,000 | 21,525,000 | ||||||||||||||||||
Shares redeemed | (9,000,000 | ) | (10,650,000 | ) | (750,000 | ) | (13,425,000 | ) | (9,375,000 | ) | (1,875,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 37,350,000 | 53,550,000 | 11,100,000 | 7,800,000 | (75,000 | ) | 19,650,000 | |||||||||||||||||
See notes to the financial statements.
70 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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 | ||||||||||||||||||||||
Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 3,388,920 | $ | 3,735,218 | $ | 26,272,609 | $ | 45,282,099 | $ | 2,998,034 | $ | 12,623,106 | ||||||||||||
Net realized gain (loss) | 48,620,247 | 37,753,990 | 13,482,162 | (1,734,816 | ) | 4,615,975 | 9,360,636 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 49,800,459 | 42,547,925 | 129,665,172 | 222,348,152 | 47,653,490 | 23,676,470 | ||||||||||||||||||
Net increase in net assets resulting from operations | 101,809,626 | 84,037,133 | 169,419,943 | 265,895,435 | 55,267,499 | 45,660,212 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (6,377,728 | ) | (2,048,280 | ) | (62,872,256 | ) | (31,933,222 | ) | (14,378,298 | ) | (7,420,067 | ) | ||||||||||||
Total distributions to shareholders | (6,377,728 | ) | (2,048,280 | ) | (62,872,256 | ) | (31,933,222 | ) | (14,378,298 | ) | (7,420,067 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | 269,998,910 | 229,047,163 | 274,272,250 | 636,895,214 | 118,659,276 | 156,094,475 | ||||||||||||||||||
Cost of shares redeemed | (149,472,199 | ) | (185,101,346 | ) | (40,519,278 | ) | — | (11,474,006 | ) | (23,244,294 | ) | |||||||||||||
Net increase in net assets from capital share transactions | 120,526,711 | 43,945,817 | 233,752,972 | 636,895,214 | 107,185,270 | 132,850,181 | ||||||||||||||||||
INCREASE IN NET ASSETS | 215,958,609 | 125,934,670 | 340,300,659 | 870,857,427 | 148,074,471 | 171,090,326 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 255,557,449 | 129,622,779 | 1,522,107,477 | 651,250,050 | 341,136,836 | 170,046,510 | ||||||||||||||||||
End of period | $ | 471,516,058 | $ | 255,557,449 | $ | 1,862,408,136 | $ | 1,522,107,477 | $ | 489,211,307 | $ | 341,136,836 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (37,775 | ) | $ | 2,951,033 | $ | (8,423,393 | ) | $ | 28,176,254 | $ | (1,860,651 | ) | $ | 9,519,613 | |||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | 7,800,000 | 9,500,000 | 2,700,000 | 7,000,000 | 14,700,000 | 21,000,000 | ||||||||||||||||||
Shares redeemed | (4,300,000 | ) | (7,400,000 | ) | (400,000 | ) | — | (1,500,000 | ) | (3,200,000 | ) | |||||||||||||
Net increase in shares outstanding | 3,500,000 | 2,100,000 | 2,300,000 | 7,000,000 | 13,200,000 | 17,800,000 | ||||||||||||||||||
See notes to the financial statements.
FINANCIAL STATEMENTS | 71 |
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 | ||||||||||||||||||||||
Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 1,813,930 | $ | 3,396,007 | $ | 11,948,874 | $ | 7,696,168 | $ | (2,737,524 | ) | $ | 15,942,474 | |||||||||||
Net realized gain (loss) | 11,175,434 | 11,282,685 | (3,260,586 | ) | (9,230,908 | ) | (5,402,210 | ) | (22,426,083 | ) | ||||||||||||||
Net change in unrealized appreciation (depreciation) | 39,287,302 | 25,755,064 | 307,365,996 | 167,580,084 | 144,497,067 | 48,276,152 | ||||||||||||||||||
Net increase in net assets resulting from operations | 52,276,666 | 40,433,756 | 316,054,284 | 166,045,344 | 136,357,333 | 41,792,543 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
From net investment income | (4,618,354 | ) | (2,053,497 | ) | (7,841,332 | ) | (1,677,739 | ) | (16,050,567 | ) | (4,632,113 | ) | ||||||||||||
Total distributions to shareholders | (4,618,354 | ) | (2,053,497 | ) | (7,841,332 | ) | (1,677,739 | ) | (16,050,567 | ) | (4,632,113 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from shares sold | 247,721,179 | 37,191,402 | 876,606,613 | 331,095,006 | 1,194,143,683 | 391,736,531 | ||||||||||||||||||
Cost of shares redeemed | (36,375,942 | ) | (14,923,708 | ) | (40,818,036 | ) | (112,471,028 | ) | (16,682,536 | ) | (66,484,667 | ) | ||||||||||||
Net increase in net assets from capital share transactions | 211,345,237 | 22,267,694 | 835,788,577 | 218,623,978 | 1,177,461,147 | 325,251,864 | ||||||||||||||||||
INCREASE IN NET ASSETS | 259,003,549 | 60,647,953 | 1,144,001,529 | 382,991,583 | 1,297,767,913 | 362,412,294 | ||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 153,530,159 | 92,882,206 | 698,455,285 | 315,463,702 | 752,640,371 | 390,228,077 | ||||||||||||||||||
End of period | $ | 412,533,708 | $ | 153,530,159 | $ | 1,842,456,814 | $ | 698,455,285 | $ | 2,050,408,284 | $ | 752,640,371 | ||||||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period | $ | (158,701 | ) | $ | 2,645,723 | $ | 11,948,874 | $ | 7,841,332 | $ | (2,933,097 | ) | $ | 15,854,994 | ||||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
Shares sold | 2,350,000 | 500,000 | 20,350,000 | 10,700,000 | 97,450,000 | 34,150,000 | ||||||||||||||||||
Shares redeemed | (350,000 | ) | (200,000 | ) | (1,050,000 | ) | (3,650,000 | ) | (1,400,000 | ) | (5,700,000 | ) | ||||||||||||
Net increase in shares outstanding | 2,000,000 | 300,000 | 19,300,000 | 7,050,000 | 96,050,000 | 28,450,000 | ||||||||||||||||||
See notes to the financial statements
72 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Australia Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 18.28 | $ | 13.56 | $ | 11.22 | $ | 9.36 | $ | 9.24 | $ | 9.93 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.35 | 0.70 | 0.45 | 0.32 | 0.23 | 0.24 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.91 | 4.60 | 2.32 | 1.81 | (0.07 | ) | (0.71 | ) | ||||||||||||||||
Total from investment operations | 2.26 | 5.30 | 2.77 | 2.13 | 0.16 | (0.47 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.67 | ) | (0.58 | ) | (0.43 | ) | (0.27 | ) | (0.04 | ) | (0.20 | ) | ||||||||||||
Return of capital | — | — | — | — | — | (0.02 | ) | |||||||||||||||||
Total distributions | (0.67 | ) | (0.58 | ) | (0.43 | ) | (0.27 | ) | (0.04 | ) | (0.22 | ) | ||||||||||||
Net asset value, end of period | $ | 19.87 | $ | 18.28 | $ | 13.56 | $ | 11.22 | $ | 9.36 | $ | 9.24 | ||||||||||||
Total return | 12.60 | %b | 39.58 | % | 24.95 | % | 23.33 | % | 1.74 | % | (4.77 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 512,696 | $ | 369,355 | $ | 178,998 | $ | 87,541 | $ | 76,731 | $ | 57,312 | ||||||||||||
Ratio of expenses to average net assetsc | 0.56 | %d | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 3.74 | % | 4.13 | % | 3.37 | % | 3.21 | % | 2.47 | % | 2.54 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 17 | % | 9 | % | 8 | % | 5 | % | 23 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.55%. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 73 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Brazil Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 28.18 | $ | 16.96 | $ | 12.19 | $ | 8.30 | $ | 11.20 | $ | 19.25 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.47 | 0.89 | 0.55 | 0.32 | 0.38 | 0.68 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 14.04 | 10.79 | 4.49 | 3.68 | (3.28 | ) | (8.09 | ) | ||||||||||||||||
Total from investment operations | 14.51 | 11.68 | 5.04 | 4.00 | (2.90 | ) | (7.41 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.58 | ) | (0.46 | ) | (0.27 | ) | (0.11 | ) | — | (0.56 | ) | |||||||||||||
Return of capital | — | — | — | — | — | (0.08 | ) | |||||||||||||||||
Total distributions | (0.58 | ) | (0.46 | ) | (0.27 | ) | (0.11 | ) | — | (0.64 | ) | |||||||||||||
Net asset value, end of period | $ | 42.11 | $ | 28.18 | $ | 16.96 | $ | 12.19 | $ | 8.30 | $ | 11.20 | ||||||||||||
Total return | 52.04 | %b | 69.72 | % | 41.42 | % | 48.85 | % | (25.89 | )% | (38.52 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,956,215 | $ | 552,285 | $ | 209,504 | $ | 103,035 | $ | 83,788 | $ | 14,004 | ||||||||||||
Ratio of expenses to average net assetsc | 0.73 | %d | 0.74 | % | 0.96 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 2.67 | % | 3.94 | % | 3.59 | % | 3.59 | % | 3.50 | % | 4.44 | % | ||||||||||||
Portfolio turnover ratee | 6 | % | 48 | % | 106 | % | 85 | % | 103 | % | 43 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.72%. |
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, 2006 and the year ended August 31, 2005 would have been 1% and 9%, respectively. See Note 4. |
See notes to the financial statements.
74 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Canada Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.30 | $ | 14.33 | $ | 12.25 | $ | 9.49 | $ | 10.70 | $ | 16.94 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.09 | 0.17 | 0.11 | 0.10 | 0.07 | 0.05 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 3.02 | 6.00 | 2.17 | 2.69 | (1.27 | ) | (5.92 | ) | ||||||||||||||||
Total from investment operations | 3.11 | 6.17 | 2.28 | 2.79 | (1.20 | ) | (5.87 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.20 | ) | (0.20 | ) | (0.03 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||
Net realized gain | — | — | — | — | — | (0.31 | ) | |||||||||||||||||
Return of capital | — | — | — | — | — | (0.04 | ) | |||||||||||||||||
Total distributions | (0.15 | ) | (0.20 | ) | (0.20 | ) | (0.03 | ) | (0.01 | ) | (0.37 | ) | ||||||||||||
Net asset value, end of period | $ | 23.26 | $ | 20.30 | $ | 14.33 | $ | 12.25 | $ | 9.49 | $ | 10.70 | ||||||||||||
Total return | 15.37 | %b | 43.35 | % | 18.70 | % | 29.47 | % | (11.23 | )% | (34.95 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 962,891 | $ | 420,301 | $ | 325,298 | $ | 503,407 | $ | 66,420 | $ | 28,889 | ||||||||||||
Ratio of expenses to average net assetsc | 0.56 | %d | 0.57 | % | 0.70 | %e | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 0.79 | % | 1.00 | % | 0.81 | %f | 0.98 | % | 0.70 | % | 0.44 | % | ||||||||||||
Portfolio turnover rateg | 3 | % | 9 | % | 10 | % | 10 | % | 5 | % | 63 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets remains unchanged. |
e | Ratio of expenses to average net assets prior to voluntarily 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 voluntarily reimbursed distribution fees for the year ended August 31, 2004 was 0.71%. |
g | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 75 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Emerging Markets Index Fund | ||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005b | Year ended Aug. 31, 2004b | Period from Apr. 7, 2003a to Aug. 31, 2003b | |||||||||||||
Net asset value, beginning of period | $ | 77.92 | $ | 53.96 | $ | 45.13 | $ | 33.75 | ||||||||
Income from investment operations: | ||||||||||||||||
Net investment incomec | 0.29 | 1.65 | 1.13 | 0.26 | ||||||||||||
Net realized and unrealized gain | 20.39 | 24.72 | 7.97 | 11.12 | ||||||||||||
Total from investment operations | 20.68 | 26.37 | 9.10 | 11.38 | ||||||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.99 | ) | (2.41 | ) | (0.27 | ) | — | |||||||||
Total distributions | (0.99 | ) | (2.41 | ) | (0.27 | ) | — | |||||||||
Net asset value, end of period | $ | 97.61 | $ | 77.92 | $ | 53.96 | $ | 45.13 | ||||||||
Total return | 26.67 | %d | 46.17 | % | 20.21 | % | 33.72 | %d | ||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 12,415,717 | $ | 7,000,858 | $ | 1,958,596 | $ | 297,846 | ||||||||
Ratio of expenses to average net assets prior to waived feese | 0.79 | % | 0.78 | % | 0.77 | % | 0.78 | % | ||||||||
Ratio of expenses to average net assets after waived feese | 0.79 | % | 0.77 | % | 0.76 | % | 0.78 | % | ||||||||
Ratio of expenses to average net assets after waived fees and exclusive of foreign taxes and extraordinary expenses, if applicablee | 0.75 | % f | 0.74 | % | 0.74 | % | 0.72 | % | ||||||||
Ratio of net investment income to average net assetse | 0.67 | % | 2.40 | % | 2.10 | % | 1.58 | % | ||||||||
Portfolio turnover rateg | 3 | % | 9 | % | 8 | % | 10 | % |
a | Commencement of operations. |
b | Per share amounts were adjusted to reflect a three-for-one stock split effective June 9, 2005. |
c | Based on average shares outstanding throughout each period. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Excludes foreign taxes and proxy fees. |
g | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
76 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Hong Kong Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 13.01 | $ | 10.91 | $ | 9.03 | $ | 7.99 | $ | 8.93 | $ | 13.24 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.11 | 0.33 | 0.28 | 0.23 | 0.23 | 0.23 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.57 | 2.04 | 1.75 | 0.95 | (1.11 | ) | (4.30 | ) | ||||||||||||||||
Total from investment operations | 0.68 | 2.37 | 2.03 | 1.18 | (0.88 | ) | (4.07 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.36 | ) | (0.27 | ) | (0.15 | ) | (0.14 | ) | (0.06 | ) | (0.23 | ) | ||||||||||||
Return of capital | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.36 | ) | (0.27 | ) | (0.15 | ) | (0.14 | ) | (0.06 | ) | (0.24 | ) | ||||||||||||
Net asset value, end of period | $ | 13.33 | $ | 13.01 | $ | 10.91 | $ | 9.03 | $ | 7.99 | $ | 8.93 | ||||||||||||
Total return | 5.33 | %b | 21.96 | % | 22.69 | % | 15.14 | % | (9.94 | )% | (30.88 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 801,917 | $ | 637,985 | $ | 449,923 | $ | 250,627 | $ | 99,502 | $ | 52,946 | ||||||||||||
Ratio of expenses to average net assetsc | 0.56 | %d | 0.57 | % | 0.80 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.78 | % | 2.75 | % | 2.78 | % | 3.06 | % | 2.56 | % | 2.11 | % | ||||||||||||
Portfolio turnover ratee | 3 | % | 6 | % | 5 | % | 10 | % | 15 | % | 43 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets remains unchanged. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 77 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Malaysia Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 7.19 | $ | 6.54 | $ | 5.99 | $ | 5.68 | $ | 5.11 | $ | 5.96 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.14 | 0.20 | 0.13 | 0.10 | 0.08 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.29 | 0.61 | 0.52 | 0.30 | 0.52 | (0.85 | ) | |||||||||||||||||
Total from investment operations | 0.43 | 0.81 | 0.65 | 0.40 | 0.60 | (0.79 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.29 | ) | (0.16 | ) | (0.10 | ) | (0.09 | ) | (0.03 | ) | (0.06 | ) | ||||||||||||
Return of capital | — | — | — | — | — | (0.00 | )b | |||||||||||||||||
Total distributions | (0.29 | ) | (0.16 | ) | (0.10 | ) | (0.09 | ) | (0.03 | ) | (0.06 | ) | ||||||||||||
Net asset value, end of period | $ | 7.33 | $ | 7.19 | $ | 6.54 | $ | 5.99 | $ | 5.68 | $ | 5.11 | ||||||||||||
Total return | 6.26 | %c | 12.39 | % | 11.01 | % | 7.39 | % | 11.82 | % | (13.22 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 394,963 | $ | 387,575 | $ | 224,218 | $ | 99,730 | $ | 93,262 | $ | 80,877 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | %e | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 3.82 | % | 2.85 | % | 1.97 | % | 1.91 | % | 1.53 | % | 1.19 | % | ||||||||||||
Portfolio turnover ratef | 20 | % | 15 | % | 39 | % | 35 | % | 37 | % | 37 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.55%. |
f | 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, 2006 and the year ended August 31, 2005 would have been 2% and 9%, respectively. See. Note 4. |
See notes to the financial statements.
78 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Mexico Index Fund | ||||||||||||||||||||||||
Six months ended Feb. | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 29.04 | $ | 19.35 | $ | 15.04 | $ | 13.65 | $ | 15.35 | $ | 16.72 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.30 | 0.42 | 0.26 | 0.19 | 0.32 | 0.17 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 9.47 | 9.55 | 4.26 | 1.72 | (1.95 | ) | (1.36 | ) | ||||||||||||||||
Total from investment operations | 9.77 | 9.97 | 4.52 | 1.91 | (1.63 | ) | (1.19 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.48 | ) | (0.28 | ) | (0.21 | ) | (0.52 | ) | (0.07 | ) | (0.15 | ) | ||||||||||||
Net realized gain | — | — | — | — | — | (0.03 | ) | |||||||||||||||||
Total distributions | (0.48 | ) | (0.28 | ) | (0.21 | ) | (0.52 | ) | (0.07 | ) | (0.18 | ) | ||||||||||||
Net asset value, end of period | $ | 38.33 | $ | 29.04 | $ | 19.35 | $ | 15.04 | $ | 13.65 | $ | 15.35 | ||||||||||||
Total return | 33.75 | %b | 51.77 | % | 30.28 | % | 14.60 | % | (10.67 | )% | (7.02 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 471,516 | $ | 255,557 | $ | 129,623 | $ | 60,155 | $ | 70,994 | $ | 46,056 | ||||||||||||
Ratio of expenses to average net assetsc | 0.56 | %d | 0.57 | % | 0.78 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.73 | % | 1.70 | % | 1.40 | % | 1.43 | % | 2.05 | % | 1.12 | % | ||||||||||||
Portfolio turnover ratee | 8 | % | 9 | % | 12 | % | 13 | % | 8 | % | 34 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.55%. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 79 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Pacific ex-Japan Index Fund | ||||||||||||||||||||
Six months ended Feb. | Year ended Aug. 31, 2005 | 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 | $ | 97.57 | $ | 75.73 | $ | 62.03 | $ | 52.51 | $ | 50.03 | ||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment incomeb | 1.58 | 3.70 | 2.68 | 1.87 | 1.35 | |||||||||||||||
Net realized and unrealized gain | 8.60 | 21.15 | 12.53 | 8.53 | 1.40 | |||||||||||||||
Total from investment operations | 10.18 | 24.85 | 15.21 | 10.40 | 2.75 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (3.70 | ) | (3.01 | ) | (1.51 | ) | (0.88 | ) | (0.27 | ) | ||||||||||
Total distributions | (3.70 | ) | (3.01 | ) | (1.51 | ) | (0.88 | ) | (0.27 | ) | ||||||||||
Net asset value, end of period | $ | 104.05 | $ | 97.57 | $ | 75.73 | $ | 62.03 | $ | 52.51 | ||||||||||
Total return | 10.68 | %c | 33.27 | % | 24.74 | % | 20.15 | % | 5.51 | %c | ||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,862,408 | $ | 1,522,107 | $ | 651,250 | $ | 223,298 | $ | 105,029 | ||||||||||
Ratio of expenses to average net assetsd | 0.51 | %e | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||
Ratio of net investment income to average net assetsd | 3.17 | % | 4.09 | % | 3.68 | % | 3.47 | % | 2.87 | % | ||||||||||
Portfolio turnover ratef | 3 | % | 16 | % | 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 | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.50%. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
80 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Singapore Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 7.77 | $ | 6.52 | $ | 5.38 | $ | 5.01 | $ | 5.34 | $ | 7.58 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.06 | 0.38 | 0.22 | 0.12 | 0.07 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.03 | 1.15 | 1.04 | 0.33 | (0.36 | ) | (2.16 | ) | ||||||||||||||||
Total from investment operations | 1.09 | 1.53 | 1.26 | 0.45 | (0.29 | ) | (2.09 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.29 | ) | (0.28 | ) | (0.12 | ) | (0.08 | ) | (0.04 | ) | (0.07 | ) | ||||||||||||
Net realized gain | — | — | — | — | — | (0.06 | ) | |||||||||||||||||
Return of capital | — | — | — | — | — | (0.02 | ) | |||||||||||||||||
Total distributions | (0.29 | ) | (0.28 | ) | (0.12 | ) | (0.08 | ) | (0.04 | ) | (0.15 | ) | ||||||||||||
Net asset value, end of period | $ | 8.57 | $ | 7.77 | $ | 6.52 | $ | 5.38 | $ | 5.01 | $ | 5.34 | ||||||||||||
Total return | 14.40 | %b | 24.06 | % | 23.47 | % | 9.30 | % | (5.42 | )% | (27.89 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 489,211 | $ | 341,137 | $ | 170,047 | $ | 108,202 | $ | 88,126 | $ | 73,704 | ||||||||||||
Ratio of expenses to average net assetsc | 0.56 | %d | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.52 | % | 5.19 | % | 3.50 | % | 2.67 | % | 1.44 | % | 1.15 | % | ||||||||||||
Portfolio turnover ratee | 3 | % | 8 | % | 9 | % | 14 | % | 9 | % | 32 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets remains unchanged. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 81 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Africa Index Fund | ||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Period from to Aug. 31, 2003 | |||||||||||||
Net asset value, beginning of period | $ | 82.99 | $ | 59.92 | $ | 46.81 | $ | 38.72 | ||||||||
Income from investment operations: | ||||||||||||||||
Net investment incomeb | 0.77 | 1.92 | 1.23 | 0.89 | ||||||||||||
Net realized and unrealized gain | 25.36 | 22.36 | 13.24 | 7.20 | ||||||||||||
Total from investment operations | 26.13 | 24.28 | 14.47 | 8.09 | ||||||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (1.97 | ) | (1.21 | ) | (1.36 | ) | — | |||||||||
Total distributions | (1.97 | ) | (1.21 | ) | (1.36 | ) | — | |||||||||
Net asset value, end of period | $ | 107.15 | $ | 82.99 | $ | 59.92 | $ | 46.81 | ||||||||
Total return | 31.71 | %c | 40.62 | % | 31.30 | % | 20.89 | %c | ||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 412,534 | $ | 153,530 | $ | 92,882 | $ | 81,914 | ||||||||
Ratio of expenses to average net assetsd | 0.73 | %e | 0.74 | % | 0.95 | % | 0.99 | % | ||||||||
Ratio of net investment income to average net assetsd | 1.58 | % | 2.62 | % | 2.23 | % | 3.86 | % | ||||||||
Portfolio turnover ratef | 3 | % | 32 | % | 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 | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.72%. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
82 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Korea Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 34.75 | $ | 24.17 | $ | 23.06 | $ | 21.17 | $ | 13.25 | $ | 18.16 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | 0.43 | 0.46 | 0.22 | 0.19 | (0.00 | )b | 0.09 | |||||||||||||||||
Net realized and unrealized gain (loss) | 11.84 | 10.22 | 1.13 | 1.70 | 7.92 | (4.90 | ) | |||||||||||||||||
Total from investment operations | 12.27 | 10.68 | 1.35 | 1.89 | 7.92 | (4.81 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.26 | ) | (0.10 | ) | (0.24 | ) | — | — | (0.03 | ) | ||||||||||||||
Return of capital | — | — | — | — | — | (0.07 | ) | |||||||||||||||||
Total distributions | (0.26 | ) | (0.10 | ) | (0.24 | ) | — | — | (0.10 | ) | ||||||||||||||
Net asset value, end of period | $ | 46.76 | $ | 34.75 | $ | 24.17 | $ | 23.06 | $ | 21.17 | $ | 13.25 | ||||||||||||
Total return | 35.36 | %c | 44.29 | % | 5.83 | % | 8.93 | % | 59.77 | % | (26.49 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,842,457 | $ | 698,455 | $ | 315,464 | $ | 154,486 | $ | 96,336 | $ | 37,767 | ||||||||||||
Ratio of expenses to average net assetsd | 0.73 | % | 0.74 | % | 0.94 | % | 0.99 | % | 1.00 | % | 1.01 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes and extraordinary expenses, if applicabled | 0.72 | %e | 0.74 | % | 0.94 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | 2.06 | % | 1.49 | % | 0.87 | % | 0.98 | % | (0.01 | )% | 0.64 | % | ||||||||||||
Portfolio turnover ratef | 7 | % | 30 | % | 29 | % | 39 | % | 25 | % | 39 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Excludes foreign taxes and proxy fees. |
f | 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, 2006 and the year ended August 31, 2005 would have been 3% and 9%, respectively. See Note 4. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 83 |
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Taiwan Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2006 (Unaudited) | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 11.57 | $ | 10.66 | $ | 10.79 | $ | 8.82 | $ | 9.01 | $ | 16.41 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.03 | ) | 0.27 | 0.14 | 0.04 | (0.03 | ) | (0.03 | ) | |||||||||||||||
Net realized and unrealized gain (loss) | 1.33 | 0.72 | (0.25 | ) | 1.93 | (0.16 | ) | (7.37 | ) | |||||||||||||||
Total from investment operations | 1.30 | 0.99 | (0.11 | ) | 1.97 | (0.19 | ) | (7.40 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.14 | ) | (0.08 | ) | (0.02 | ) | — | — | — | |||||||||||||||
Total distributions | (0.14 | ) | (0.08 | ) | (0.02 | ) | — | — | — | |||||||||||||||
Net asset value, end of period | $ | 12.73 | $ | 11.57 | $ | 10.66 | $ | 10.79 | $ | 8.82 | $ | 9.01 | ||||||||||||
Total return | 11.24 | %b | 9.28 | % | (1.10 | )% | 22.45 | % | (2.11 | )% | (45.09 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,050,408 | $ | 752,640 | $ | 390,228 | $ | 234,727 | $ | 142,043 | $ | 110,786 | ||||||||||||
Ratio of expenses to average net assetsc | 0.75 | % | 1.03 | % | 1.19 | %d | 1.31 | % | 1.33 | % | 1.60 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes and extraordinary expenses, if applicablec | 0.72 | %e | 0.74 | % | 0.92 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.45 | )% | 2.34 | % | 1.23 | %f | 0.43 | % | (0.28 | )% | (0.23 | )% | ||||||||||||
Portfolio turnover rateg | 3 | % | 20 | % | 19 | % | 15 | % | 11 | % | 30 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Ratio of expenses to average net assets prior to voluntarily reimbursed distribution fees for the year ended August 31, 2004 was 1.22%. |
e | Excludes foreign taxes and proxy fees. |
f | Ratio of net investment income to average net assets prior to voluntarily reimbursed distribution fees for the year ended August 31, 2004 was 1.21%. |
g | 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, 2006 and the year ended August 31, 2005 would have been 1% and 10%, respectively. See Note 4. |
See notes to the financial statements.
84 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited)
iSHARES®, INC.
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, 2006, 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 uses 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 securities of 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; less 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.
1. SIGNIFICANT ACCOUNTING POLICIES
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 the 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 the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
SECURITY VALUATION
The securities and other assets of each Fund are generally valued using market valuations. A market valuation generally means a valuation (i) obtained from an exchange, a pricing service or a major market maker (or dealer), (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker (or dealer) or (iii) based on amortized cost. In the case of shares of funds that are not traded on an exchange, a market valuation means such fund’s published net asset value per share. The investment adviser may use various pricing services or discontinue the use of any pricing service. A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. In the event that current market valuations are not readily available or such valuations do not reflect current market values, the affected investments will be valued using fair value pricing pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”).
NOTESTOTHE FINANCIAL STATEMENTS | 85 |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, 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. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies are translated 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. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective date of such transactions.
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 16.50% and up to 20.00%, 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 Statements 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 capital 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.
The tax character of current year distributions will be determined at the end of the current fiscal year.
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, 2006.
86 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The Funds had tax basis net capital loss carryforwards as of August 31, 2005, 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 | Expiring 2013 | Total | ||||||||||||||||
Australia | $ | 674,889 | $ | 630,985 | $ | 1,971,994 | $ | 3,625,203 | $ | 650,082 | $ | 596,240 | $ | 384,424 | $ | 8,533,817 | ||||||||
Brazil | — | — | — | — | 48,085,016 | — | — | 48,085,016 | ||||||||||||||||
Canada | — | — | — | 780,114 | 21,276 | 2,463,817 | 5,786,217 | 9,051,424 | ||||||||||||||||
Emerging Markets | — | — | — | — | — | 840,778 | 20,296,564 | 21,137,342 | ||||||||||||||||
Hong Kong | 4,085,707 | — | — | 4,971,970 | 2,870,602 | 2,330,414 | 468,716 | 14,727,409 | ||||||||||||||||
Malaysia | 8,654,333 | — | — | 9,819,029 | 2,898,105 | 775,477 | 6,820,474 | 28,967,418 | ||||||||||||||||
Mexico | — | — | — | 1,319,032 | 2,329,290 | 3,136,170 | 12,913 | 6,797,405 | ||||||||||||||||
Pacific ex-Japan | — | — | — | — | 329,461 | 2,563,114 | 1,853,572 | 4,746,147 | ||||||||||||||||
Singapore | — | — | — | 4,810,766 | 4,428,316 | 4,256,421 | 2,558,348 | 16,053,851 | ||||||||||||||||
South Africa | — | — | — | — | — | 527,613 | — | 527,613 | ||||||||||||||||
South Korea | — | — | 556,540 | 666,642 | 504,041 | 3,363,449 | 11,590,303 | 16,680,975 | ||||||||||||||||
Taiwan | — | — | — | 12,532,361 | 8,689,663 | 9,129,874 | 12,022,719 | 42,374,617 |
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.
Each Fund reclassifies at the end of its tax year certain amounts to paid-in-capital from accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss), respectively, as a result of permanent book and tax differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, realized foreign currency gains and losses and gains and losses on in-kind redemptions. These reclassifications have no effect on net assets or net asset values per share.
As of February 28, 2006, 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 | $ | 425,830,767 | $ | 87,728,808 | $ | (5,057,635 | ) | $ | 82,671,173 | ||||
Brazil | 1,270,127,639 | 673,769,348 | — | 673,769,348 | |||||||||
Canada | 798,210,297 | 170,236,950 | (8,057,029 | ) | 162,179,921 | ||||||||
Emerging Markets | 10,163,302,891 | 3,060,101,204 | (64,503,049 | ) | 2,995,598,155 | ||||||||
Hong Kong | 683,834,099 | 121,515,220 | (3,657,251 | ) | 117,857,969 | ||||||||
Malaysia | 321,105,574 | 79,654,312 | (6,032,838 | ) | 73,621,474 | ||||||||
Mexico | 418,155,062 | 85,251,199 | (865,071 | ) | 84,386,128 | ||||||||
Pacific ex-Japan | 1,461,546,433 | 402,967,713 | (5,437,117 | ) | 397,530,596 | ||||||||
Singapore | 403,481,182 | 89,967,802 | (3,474,672 | ) | 86,493,130 | ||||||||
South Africa | 322,791,429 | 89,793,783 | — | 89,793,783 | |||||||||
South Korea | 1,351,115,537 | 513,166,039 | (547,832 | ) | 512,618,207 | ||||||||
Taiwan | 1,875,169,277 | 204,208,266 | (29,635,216 | ) | 174,573,050 |
NOTESTOTHE FINANCIAL STATEMENTS | 87 |
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.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Agreement with the Company, Barclays Global 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 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 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%. BGFA voluntarily waives its advisory fees for the iShares MSCI Emerging Markets Index Fund in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares Funds.
88 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 and expenses are Covered Expenses as defined above.
SEI Investments Distribution Co. (“SEI”) serves as each Fund’s underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the Company. SEI does not currently receive a fee from the Funds for its distribution services.
Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC”), the Funds are permitted to lend portfolio securities to Barclays Capital, Inc. (“BarCap”). Pursuant to the same exemptive order, Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Company. BarCap and BGI are affiliates 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, 2006, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Australia | $ | 39,225 | |
Brazil | 1,515 | ||
Emerging Markets | 3,086,710 | ||
Hong Kong | 98,186 | ||
Mexico | 54,278 | ||
Pacific ex-Japan | 232,018 | ||
Singapore | 84,220 | ||
South Korea | 336,974 |
Pursuant to Rule 17a-7 under the 1940 Act, certain Funds executed cross trades for the six months ended February 28, 2006. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter, for compliance with the requirements and restrictions set forth by Rule 17a-7.
Pursuant to an exemptive order issued by the SEC, 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.
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, 2006, the iShares MSCI Emerging Markets Index Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.
NOTESTOTHE FINANCIAL STATEMENTS | 89 |
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, 2006, including income earned from these affiliated issuers and net realized gains 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 Gain | ||||||||||
Australia | |||||||||||||||||
IMMF | 108 | 17,435 | 17,471 | 72 | $ | 72,364 | $ | 2,830 | $ | — | |||||||
Brazil | |||||||||||||||||
IMMF | 1,112 | 313,723 | 312,310 | 2,525 | 2,525,013 | 50,404 | — | ||||||||||
Canada | |||||||||||||||||
IMMF | 39 | 43,356 | 43,000 | 395 | 394,916 | 7,383 | — | ||||||||||
Emerging Markets | |||||||||||||||||
IMMF | 4,035 | 1,126,135 | 1,115,684 | 14,486 | 14,485,808 | 182,501 | — | ||||||||||
iShares MSCI Malaysia Index Fund | 1,180 | 34 | — | 1,214 | 8,901,252 | 350,401 | — | ||||||||||
iShares MSCI South Korea Index Fund | 402 | 203 | 40 | 565 | 26,219,840 | 169,452 | 748,462 | ||||||||||
iShares MSCI Taiwan Index Fund | 1,516 | 1,263 | 65 | 2,714 | 34,299,904 | 211,224 | 227,566 | ||||||||||
Hong Kong | |||||||||||||||||
IMMF | 23 | 36,788 | 36,115 | 696 | 696,030 | 6,375 | — | ||||||||||
Malaysia | |||||||||||||||||
IMMF | 401 | 40,408 | 40,587 | 222 | 222,045 | 5,420 | — | ||||||||||
Mexico | |||||||||||||||||
IMMF | 17 | 39,290 | 38,939 | 368 | 367,620 | 6,955 | — | ||||||||||
Pacific ex-Japan | |||||||||||||||||
IMMF | 816 | 64,539 | 65,336 | 19 | 18,881 | 10,652 | — | ||||||||||
Singapore | |||||||||||||||||
IMMF | 52 | 28,326 | 28,158 | 220 | 220,334 | 4,817 | — | ||||||||||
South Africa | |||||||||||||||||
IMMF | 5 | 16,319 | 15,959 | 365 | 365,084 | 2,861 | — | ||||||||||
South Korea | |||||||||||||||||
IMMF | 1,393 | 295,994 | 293,709 | 3,678 | 3,678,378 | 49,367 | — | ||||||||||
Taiwan | |||||||||||||||||
IMMF | 70 | 157,471 | 156,270 | 1,271 | 1,270,794 | 25,365 | — |
During the six months ended February 28, 2006, certain Funds invested cash collateral from securities on loan in a joint investment account with other investment funds managed by BGFA (see Note 5). The joint account invested in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account, the information needed to isolate the activity at the Fund level is not available. 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.
90 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of February 28, 2006, 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, 2006, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Australia | $ | 9,534,267 | $ | 18,560,881 | ||
Brazil | 999,554,484 | 71,006,849 | ||||
Canada | 21,955,797 | 23,666,262 | ||||
Emerging Markets | 297,180,024 | 343,583,628 | ||||
Hong Kong | 23,256,462 | 33,374,181 | ||||
Malaysia | 75,065,297 | 81,668,865 | ||||
Mexico | 31,478,006 | 34,738,403 | ||||
Pacific ex-Japan | 50,598,488 | 83,873,090 | ||||
Singapore | 11,101,089 | 18,215,805 | ||||
South Africa | 6,509,970 | 8,078,213 | ||||
South Korea | 904,126,985 | 81,880,740 | ||||
Taiwan | 1,195,445,794 | 32,868,058 |
In-kind transactions (see Note 4) for the six months ended February 28, 2006, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Australia | $ | 111,651,523 | $ | 3,689,037 | ||
Canada | 521,592,513 | 60,536,184 | ||||
Emerging Markets | 4,024,144,838 | 757,309,170 | ||||
Hong Kong | 153,931,979 | 9,796,199 | ||||
Mexico | 269,547,121 | 149,192,100 | ||||
Pacific ex-Japan | 270,695,876 | 39,835,451 | ||||
Singapore | 116,826,331 | 11,370,406 | ||||
South Africa | 245,143,639 | 35,097,607 |
NOTESTOTHE FINANCIAL STATEMENTS | 91 |
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 | |
Australia | 127,800,000 | |
Brazil | 500,000,000 | |
Canada | 340,200,000 | |
Emerging Markets | 500,000,000 | |
Hong Kong | 191,400,000 | |
Malaysia | 127,800,000 | |
Mexico | 255,000,000 | |
Pacific ex-Japan | 500,000,000 | |
Singapore | 191,400,000 | |
South Africa | 200,000,000 | |
South Korea | 200,000,000 | |
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 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other 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, 2006, certain Funds had loaned securities which were collateralized by cash. Pursuant to an exemptive order issued by the SEC, the cash collateral received was invested in a joint account with other funds managed by BGFA. The joint account 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 and non-U.S. Government debt 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, 2006 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.
92 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes:
NOTES: | 93 |
The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call 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 100 (OEF)
iShares S&P 500 (IVV)
iShares S&P 500 Growth (IVW)
iShares S&P 500 Value (IVE)
iShares S&P MidCap 400 (IJH)
iShares S&P MidCap 400 Growth (IJK)
iShares S&P MidCap 400 Value (IJJ)
iShares S&P SmallCap 600 (IJR)
iShares S&P SmallCap 600 Growth (IJT)
iShares S&P SmallCap 600 Value (IJS)
iShares Domestic Sector Index Funds
iShares Cohen & Steers Realty Majors (ICF)
iShares Dow Jones U.S. Basic Materials Sector (IYM)
iShares Dow Jones U.S. Consumer Services Sector (IYC)
iShares Dow Jones U.S. Consumer Goods 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 Transportation Average (IYT)
iShares Dow Jones U.S. Utilities Sector (IDU)
iShares Dow Jones U.S. Total Market (IYY)
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 Nasdaq Biotechnology (IBB)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
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 Russell Microcap™ (IWC)
iShares International Country 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 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 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/TOPIX 150 (ITF)
iShares Bond Funds
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 GS $ InvesTop™ Corporate (LQD)
iShares Specialty Index Funds
iShares KLD Select Social SM (KLD)
iShares Dow Jones Select Dividend (DVY)
iShares International Index Funds
iShares MSCI EAFE (EFA)
iShares MSCI EAFE Growth (EFG)
iShares MSCI EAFE Value (EFV)
iShares MSCI Emerging Markets (EEM)
iShares MSCI EMU (EZU)
iShares MSCI Pacific ex-Japan (EPP)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
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 NYSE Index Funds
iShares NYSE Composite (NYC)
iShares NYSE 100 (NY)
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 2006 Semi-Annual Report.
2461-iS-1205
94 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
iShares®
2006 ANNUAL REPORT TO SHAREHOLDERS | FEBRUARY 28, 2006
iSHARES MSCI SERIES
iSHARES MSCI JAPAN INDEX FUND
1 | ||
2 | ||
3 | ||
11 | ||
14 | ||
15 | ||
22 |
iSHARES® MSCI JAPAN INDEX FUND
Performance as of February 28, 2006
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 the securities in the Index, which have a similar investment profile as the Index. For the six-month period ended February 28, 2006, the Fund returned 28.02%, while the Index returned 28.53%.
Average Annual Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
30.15% | 28.20 | % | 31.14 | % | 6.14 | % | 5.74 | % | 6.65 | % | (0.01 | )% | (0.16 | )% | 0.75 | % | ||||||||
Cumulative Total Returns | ||||||||||||||||||||||||
Year Ended 2/28/06 | Five Years Ended 2/28/06 | Inception to 2/28/06 | ||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||||||||||
30.15% | 28.20 | % | 31.14 | % | 34.70 | % | 32.16 | % | 37.98 | % | (0.09 | )% | (1.62 | )% | 7.78 | % |
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 the 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, an 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 tables 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 2/28/06 | |||
Sector | % of Net Assets | ||
Consumer Cyclical | 24.93 | % | |
Financial | 23.20 | ||
Industrial | 19.95 | ||
Consumer Non-Cyclical | 9.46 | ||
Basic Materials | 8.26 | ||
Communications | 4.77 | ||
Technology | 4.35 | ||
Utilities | 4.09 | ||
Energy | 0.98 | ||
Short-Term and Other Net Assets | 0.01 | ||
TOTAL | 100.00 | % | |
TOP TEN FUND HOLDINGS As of 2/28/06 | |||
Security | % of Net Assets | ||
Toyota Motor Corp. | 5.65 | % | |
Mitsubishi UFJ Financial Group | 4.67 | ||
Mizuho Financial Group Inc. | 2.79 | ||
Sumitomo Mitsui Financial Group Inc. | 2.37 | ||
Takeda Pharmaceutical Co. Ltd. | 1.80 | ||
Sony Corp. | 1.76 | ||
Canon Inc. | 1.73 | ||
Honda Motor Co. Ltd. | 1.70 | ||
Matsushita Electric Industrial Co. Ltd. | 1.53 | ||
Seven & I Holdings Co. Ltd. | 1.24 | ||
TOTAL | 25.24 | % | |
FUND PERFORMANCE OVERVIEW | 1 |
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, 2005 to February 28, 2006.
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, 2005) | Ending Account Value (February 28, 2006) | Annualized Expense Ratio | Expenses Paid During Period a (September 1, 2005 to February 28, 2006) | |||||||||
Actual | $ | 1,000.00 | $ | 1,280.20 | 0.56 | % | $ | 3.17 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 |
a | 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 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
COMMON STOCKS – 99.99% | |||||
ADVERTISING – 0.34% | |||||
Asatsu-DK Inc. | 163,600 | $ | 5,890,024 | ||
Dentsu Inc. | 8,180 | 27,613,900 | |||
Hakuhodo DY Holdings Inc. | 163,600 | 13,319,646 | |||
46,823,570 | |||||
AGRICULTURE – 0.62% | |||||
Japan Tobacco Inc. | 4,908 | 84,748,543 | |||
84,748,543 | |||||
AIRLINES – 0.15% | |||||
All Nippon Airways Co. Ltd.1 | 3,272,000 | 12,034,292 | |||
Japan Airlines System Corp.1 | 3,272,000 | 8,785,599 | |||
20,819,891 | |||||
APPAREL – 0.28% | |||||
Gunze Ltd. | 1,636,000 | 10,537,069 | |||
Onward Kashiyama Co. Ltd. | 1,636,000 | 27,981,144 | |||
38,518,213 | |||||
AUTO MANUFACTURERS – 8.40% | |||||
Hino Motors Ltd. | 1,636,000 | 10,438,196 | |||
Honda Motor Co. Ltd. | 3,926,400 | 233,905,979 | |||
Nissan Motors Co. Ltd. | 11,615,600 | 134,382,939 | |||
Toyota Motor Corp. | 14,396,800 | 776,861,645 | |||
1,155,588,759 | |||||
AUTO PARTS & EQUIPMENT – 1.67% | |||||
Aisin Seiki Co. Ltd. | 981,600 | 35,170,645 | |||
Bridgestone Corp. | 3,272,000 | 64,408,893 | |||
Denso Corp. | 2,944,800 | 108,817,129 | |||
NOK Corp.1 | 490,800 | 14,492,001 | |||
Toyoda Gosei Co. Ltd. | 327,200 | 7,034,129 | |||
229,922,797 | |||||
BANKS – 13.41% | |||||
Bank of Fukuoka Ltd. | 3,272,000 | 28,023,518 | |||
Bank of Yokohama Ltd. (The) | 6,544,000 | 53,561,080 | |||
Chiba Bank Ltd. (The) | 3,272,000 | 27,797,522 | |||
Gunma Bank Ltd. | 1,636,000 | 12,316,789 | |||
Hokuhoku Financial Group Inc. | 4,908,000 | 21,399,007 | |||
Joyo Bank Ltd. | 4,908,000 | 31,738,329 | |||
Mitsubishi UFJ Financial Group | 42,517 | 642,389,380 | |||
Mitsubishi UFJ Securities Co. Ltd. | 1,629,000 | 24,120,311 | |||
Mitsui Trust Holdings Inc. | 3,272,000 | 48,532,665 | |||
Mizuho Financial Group Inc. | 47,448 | 383,434,733 | |||
Nishi-Nippon City Bank Ltd. (The) | 3,265,000 | 16,913,447 | |||
Resona Holdings Inc.2 | 22,904 | 82,064,839 | |||
77 Bank Ltd. (The) | 1,636,000 | 12,429,786 | |||
Shinsei Bank Ltd. | 4,908,000 | 33,263,803 | |||
Shizuoka Bank Ltd. (The) | 3,272,000 | 32,345,694 | |||
Sumitomo Mitsui Financial Group Inc. | 29,448 | 325,434,405 | |||
Sumitomo Trust & Banking Co. Ltd. (The) | 6,544,000 | 67,403,341 | |||
1,843,168,649 | |||||
BEVERAGES – 0.83% | |||||
Asahi Breweries Ltd. | 1,636,000 | 22,218,243 | |||
Coca-Cola West Japan Co. Ltd. | 327,200 | 7,853,366 | |||
Ito En Ltd. | 327,200 | 10,198,074 | |||
Kirin Brewery Co. Ltd. | 4,908,000 | 65,171,630 | |||
Sapporo Breweries Ltd.1 | 1,636,000 | 8,545,478 | |||
113,986,791 | |||||
BUILDING MATERIALS – 1.38% | |||||
Asahi Glass Co. Ltd. | 4,908,000 | 69,917,548 | |||
Daikin Industries Ltd. | 1,145,200 | 38,362,841 | |||
JS Group Corp. | 1,472,400 | 28,984,002 | |||
Matsushita Electric Works Ltd. | 1,636,000 | 19,252,044 | |||
Nippon Sheet Glass Co. Ltd. | 1,636,000 | 6,949,381 | |||
Sumitomo Osaka Cement Co. Ltd. | 1,636,000 | 5,169,661 | |||
Taiheiyo Cement Corp. | 4,908,000 | 21,356,633 | |||
189,992,110 | |||||
CHEMICALS – 4.08% | |||||
Asahi Kasei Corp. | 6,544,000 | 43,673,749 | |||
Daicel Chemical Industries Ltd. | 1,636,000 | 13,319,646 | |||
Dainippon Ink & Chemical Inc. | 3,272,000 | 13,418,520 | |||
Denki Kagaku Kogyo Kabushiki Kaisha | 3,272,000 | 13,898,762 | |||
Ishihara Sangyo Kaisha Ltd. | 1,636,000 | 3,262,819 | |||
JSR Corp. | 1,308,800 | 38,984,330 | |||
Kaneka Corp. | 1,636,000 | 21,653,252 | |||
Mitsubishi Chemical Holdings Corp.2 | 5,307,000 | 32,439,940 | |||
Mitsubishi Gas Chemical Co. Inc. | 1,636,000 | 19,506,290 | |||
Mitsui Chemicals Inc. | 3,272,000 | 26,385,047 | |||
Nippon Kayaku Co. Ltd. | 1,636,000 | 13,743,388 |
SCHEDULEOF INVESTMENTS | 3 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Nissan Chemical Industries Ltd. | 1,636,000 | $ | 27,246,657 | ||
Nitto Denko Corp. | 818,000 | 71,047,528 | |||
Shin-Etsu Chemical Co. Ltd. | 1,963,200 | 105,596,685 | |||
Showa Denko K.K. | 4,908,000 | 21,314,259 | |||
Sumitomo Chemical Co. Ltd. | 6,544,000 | 51,414,116 | |||
Taiyo Nippon Sanso Corp. | 1,636,000 | 11,511,677 | |||
Tosoh Corp. | 3,272,000 | 17,401,701 | |||
Ube Industries Ltd. | 4,908,000 | 14,619,123 | |||
560,437,489 | |||||
COMMERCIAL SERVICES – 0.97% | |||||
Benesse Corp. | 327,200 | 11,328,056 | |||
Dai Nippon Printing Co. Ltd. | 3,272,000 | 58,193,999 | |||
Kamigumi Co. Ltd. | 1,636,000 | 12,599,283 | |||
TIS Inc. | 327,200 | 8,785,599 | |||
Toppan Printing Co. Ltd. | 3,272,000 | 42,035,277 | |||
132,942,214 | |||||
COMPUTERS – 1.14% | |||||
CSK Corp. | 327,200 | 15,085,241 | |||
Fujitsu Ltd. | 9,816,000 | 79,409,385 | |||
Meitec Corp.1 | 163,600 | 5,649,903 | |||
Net One Systems Co. Ltd.1 | 4,908 | 9,957,954 | |||
TDK Corp. | 654,400 | 46,103,207 | |||
156,205,690 | |||||
COSMETICS & PERSONAL CARE – 0.89% | |||||
Aderans Co. Ltd. | 163,600 | 4,548,172 | |||
Kao Corp. | 3,272,000 | 89,268,466 | |||
Shiseido Co. Ltd. | 1,636,000 | 29,026,376 | |||
122,843,014 | |||||
DISTRIBUTION & WHOLESALE – 3.18% | |||||
Itochu Corp. | 8,180,000 | 68,999,439 | |||
Marubeni Corp. | 6,548,000 | 32,846,000 | |||
Mitsubishi Corp. | 6,216,800 | 145,993,490 | |||
Mitsui & Co. Ltd. | 8,180,000 | 112,998,057 | |||
Sojitz Corp.2 | 1,636,000 | 9,096,344 | |||
Sumitomo Corp. | 4,908,000 | 67,375,092 | |||
437,308,422 | |||||
DIVERSIFIED FINANCIAL SERVICES – 4.30% | |||||
ACOM Co. Ltd. | 376,280 | 23,195,676 | |||
Aeon Credit Service Co. Ltd. | 491,070 | 14,118,395 | |||
AIFUL Corp. | 409,000 | 27,507,965 | |||
Credit Saison Co. Ltd. | 818,000 | 38,984,329 | |||
Daiwa Securities Group Inc. | 6,544,000 | 79,098,640 | |||
Nikko Cordial Corp. | 4,090,000 | 65,750,745 | |||
Nomura Holdings Inc. | 8,672,400 | 168,094,436 | |||
ORIX Corp. | 409,000 | 109,819,987 | |||
Promise Co. Ltd. | 490,800 | 29,789,113 | |||
Takefuji Corp. | 539,880 | 34,865,551 | |||
591,224,837 | |||||
ELECTRIC – 3.33% | |||||
Chubu Electric Power Co. Inc.1 | 3,272,000 | 87,008,504 | |||
Electric Power Development Co. Ltd. | 981,600 | 31,526,458 | |||
Kansai Electric Power Co. Inc. (The) | 3,763,600 | 87,895,861 | |||
Kyushu Electric Power Co. Inc. | 1,963,200 | 47,459,184 | |||
Tohoku Electric Power Co. Inc. | 2,126,800 | 48,292,545 | |||
Tokyo Electric Power Co. Inc. (The) | 5,726,400 | 155,241,925 | |||
457,424,477 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 3.71% | |||||
Casio Computer Co. Ltd. | 1,636,000 | 26,695,791 | |||
Fujikura Ltd. | 1,636,000 | 18,475,183 | |||
Furukawa Electric Co. Ltd.2 | 3,272,000 | 26,017,802 | |||
Hitachi Cable Ltd. | 1,636,000 | 9,308,215 | |||
Hitachi Ltd. | 16,360,000 | 115,964,256 | |||
Mitsubishi Electric Corp. | 9,816,000 | 79,239,888 | |||
Sharp Corp. | 4,908,000 | 87,714,742 | |||
Stanley Electric Co. Ltd. | 655,600 | 12,735,592 | |||
Sumitomo Electric Industries Ltd. | 3,272,000 | 49,775,644 | |||
Toshiba Corp. | 14,724,000 | 84,663,795 | |||
510,590,908 | |||||
ELECTRONICS – 4.55% | |||||
Advantest Corp. | 327,300 | 37,668,111 | |||
Alps Electric Co. Ltd. | 818,000 | 12,924,153 | |||
Fanuc Ltd. | 818,000 | 69,917,548 | |||
Hirose Electric Co. Ltd. | 163,600 | 22,345,366 | |||
IBIDEN Co. Ltd. | 654,400 | 31,187,464 | |||
Keyence Corp. | 163,620 | 45,275,381 | |||
Kyocera Corp. | 818,000 | 73,448,737 | |||
Mabuchi Motor Co. Ltd. | 163,600 | 8,432,480 | |||
Minebea Co. Ltd. | 1,636,000 | 9,957,954 | |||
Murata Manufacturing Co. Ltd. | 981,600 | 61,696,939 | |||
NEC Corp. | 9,816,000 | 61,103,700 | |||
NGK Insulators Ltd. | 1,636,000 | 22,345,366 |
4 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
Nippon Electric Glass Co. Ltd. | 1,636,000 | $ | 40,043,687 | ||
Omron Corp. | 1,145,200 | 32,034,949 | |||
Secom Co. Ltd. | 1,153,000 | 57,737,104 | |||
Yaskawa Electric Corp.2 | 1,636,000 | 18,079,689 | |||
Yokogawa Electric Corp.1 | 1,145,600 | 21,265,185 | |||
625,463,813 | |||||
ENGINEERING & CONSTRUCTION – 1.17% | |||||
JGC Corp. | 1,636,000 | 35,311,893 | |||
Kajima Corp.1 | 4,908,000 | 29,068,750 | |||
Nishimatsu Construction Co. Ltd.1 | 1,636,000 | 6,991,755 | |||
Obayashi Corp. | 3,272,000 | 24,633,577 | |||
Okumura Corp. | 1,636,000 | 8,870,347 | |||
Shimizu Corp. | 3,272,000 | 23,221,101 | |||
Taisei Corp. | 4,908,000 | 23,983,838 | |||
Toda Corp. | 1,636,000 | 8,432,480 | |||
160,513,741 | |||||
ENTERTAINMENT – 0.25% | |||||
Oriental Land Co. Ltd. | 327,200 | 19,322,667 | |||
Toho Co. Ltd. | 821,400 | 15,495,437 | |||
34,818,104 | |||||
FOOD – 0.96% | |||||
Ajinomoto Co. Inc. | 3,272,000 | 35,029,397 | |||
Ariake Japan Co. Ltd.1 | 170,330 | 4,794,092 | |||
Katokichi Co. Ltd. | 999,600 | 6,895,579 | |||
Kikkoman Corp. | 1,636,000 | 16,130,472 | |||
Meiji Dairies Corp. | 1,636,000 | 8,898,597 | |||
Meiji Seika Kaisha Ltd. | 1,636,000 | 8,418,355 | |||
Nichirei Corp. | 1,636,000 | 7,556,745 | |||
Nippon Meat Packers Inc. | 1,636,000 | 16,314,094 | |||
Nisshin Seifun Group Inc. | 1,198,600 | 12,252,471 | |||
Nissin Food Products Co. Ltd. | 490,800 | 15,042,867 | |||
131,332,669 | |||||
FOREST PRODUCTS & PAPER – 0.41% | |||||
Nippon Paper Group Inc. | 4,908 | 22,797,359 | |||
OJI Paper Co. Ltd. | 4,908,000 | 34,153,663 | |||
56,951,022 | |||||
GAS – 0.76% | |||||
Osaka Gas Co. Ltd. | 11,452,000 | 43,998,618 | |||
Tokyo Gas Co. Ltd. | 13,088,000 | 60,227,965 | |||
104,226,583 | |||||
HAND & MACHINE TOOLS – 0.90% | |||||
Fuji Electric Holdings Co. Ltd. | 3,272,000 | 15,508,984 | |||
Nidec Corp. | 539,600 | 43,326,397 | |||
SMC Corp. | 327,200 | 46,752,947 | |||
THK Co. Ltd. | 654,400 | 18,644,679 | |||
124,233,007 | |||||
HEALTH CARE-PRODUCTS – 0.85% | |||||
Hoya Corp. | 2,159,800 | 86,522,529 | |||
Terumo Corp. | 981,600 | 30,170,481 | |||
116,693,010 | |||||
HOME BUILDERS – 0.94% | |||||
Daiwa House Industry Co. Ltd. | 3,272,000 | 52,911,341 | |||
Sekisui Chemical Co. Ltd. | 3,272,000 | 26,582,793 | |||
Sekisui House Ltd. | 3,272,000 | 50,142,888 | |||
129,637,022 | |||||
HOME FURNISHINGS – 3.56% | |||||
Matsushita Electric Industrial Co. Ltd. | 9,816,015 | 210,176,708 | |||
Pioneer Corp. | 1,308,800 | 20,712,544 | |||
Sony Corp. | 5,071,600 | 242,140,712 | |||
Yamaha Corp. | 981,600 | 16,992,083 | |||
490,022,047 | |||||
HOUSEWARES – 0.10% | |||||
Toto Ltd. | 1,636,000 | 13,927,011 | |||
13,927,011 | |||||
INSURANCE – 3.06% | |||||
Millea Holdings Inc. | 8,180 | 168,790,848 | |||
Mitsui Sumitomo Insurance Co. Ltd. | 6,544,000 | 87,573,494 | |||
Sompo Japan Insurance Inc. | 4,908,000 | 71,993,887 | |||
T&D Holdings Inc. | 1,227,000 | 92,905,590 | |||
421,263,819 | |||||
INTERNET – 1.72% | |||||
Index Corp.1 | 5,710 | 10,500,583 | |||
Rakuten Inc. | 21,268 | 18,545,806 | |||
SBI Holdings Inc.1 | 31,084 | 16,692,638 | |||
Softbank Corp. | 3,762,800 | 116,952,989 | |||
Trend Micro Inc. | 818,000 | 25,424,563 | |||
Yahoo! Japan Corp. | 40,900 | 48,730,412 | |||
236,846,991 |
SCHEDULEOF INVESTMENTS | 5 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
IRON & STEEL – 2.97% | |||||
JFE Holdings Inc. | 2,781,250 | $ | 103,734,081 | ||
Kobe Steel Ltd. | 13,088,000 | 50,397,134 | |||
Nippon Steel Corp. | 31,084,000 | 125,328,970 | |||
Nisshin Steel Co. Ltd. | 4,908,000 | 16,610,715 | |||
Sumitomo Metal Industries Ltd. | 21,268,000 | 95,666,981 | |||
Tokyo Steel Manufacturing Co. Ltd. | 818,000 | 15,925,664 | |||
407,663,545 | |||||
LEISURE TIME – 0.85% | |||||
Namco Bandai Holdings Inc.2 | 1,318,898 | 16,374,491 | |||
Sankyo Co. Ltd. | 327,200 | 20,141,904 | |||
Sega Sammy Holdings Inc. | 756,400 | 31,215,989 | |||
Shimano Inc. | 490,800 | 14,195,381 | |||
Yamaha Motor Co. Ltd. | 1,472,400 | 34,196,037 | |||
116,123,802 | |||||
MACHINERY – CONSTRUCTION & MINING – 0.64% | |||||
Komatsu Ltd. | 4,908,000 | 88,350,357 | |||
88,350,357 | |||||
MACHINERY - DIVERSIFIED – 0.97% | |||||
Amada Co. Ltd. | 1,636,000 | 15,621,982 | |||
Kubota Corp. | 4,908,000 | 48,730,413 | |||
Sumitomo Heavy Industries Ltd. | 3,272,000 | 29,661,990 | |||
Toyota Industries Corp. | 982,000 | 39,678,481 | |||
133,692,866 | |||||
MANUFACTURING – 2.17% | |||||
Fuji Photo Film Co. Ltd. | 2,454,000 | 79,451,759 | |||
Ishikawajima-Harima Heavy Industries Co. Ltd.1,2 | 6,544,000 | 20,226,653 | |||
Kawasaki Heavy Industries Ltd.1 | 8,180,000 | 28,461,387 | |||
Konica Minolta Holdings Inc. | 1,328,000 | 16,739,737 | |||
Mitsubishi Heavy Industries Ltd. | 16,360,000 | 77,686,164 | |||
Nikon Corp. | 1,636,000 | 28,178,890 | |||
Olympus Corp. | 1,636,000 | 47,600,432 | |||
298,345,022 | |||||
MEDIA – 0.02% | |||||
Fuji Television Network Inc. | 1,154 | 2,809,653 | |||
2,809,653 | |||||
METAL FABRICATE & HARDWARE – 0.27% | |||||
NSK Ltd. | 3,272,000 | 25,339,814 | |||
NTN Corp. | 1,636,000 | 12,232,040 | |||
37,571,854 | |||||
MINING – 0.80% | |||||
Dowa Mining Co. Ltd. | 1,636,000 | 18,291,560 | |||
Mitsubishi Materials Corp.1 | 4,908,000 | 25,805,931 | |||
Mitsui Mining & Smelting Co. Ltd. | 3,272,000 | 22,458,364 | |||
Sumitomo Metal Mining Co. Ltd. | 3,272,000 | 44,040,993 | |||
110,596,848 | |||||
OFFICE & BUSINESS EQUIPMENT – 2.29% | |||||
Canon Inc. | 3,762,800 | 237,804,412 | |||
Ricoh Co. Ltd. | 3,272,000 | 61,160,198 | |||
Seiko Epson Corp. | 654,400 | 15,706,730 | |||
314,671,340 | |||||
OIL & GAS – 0.98% | |||||
INPEX Corp. | 1,636 | 15,819,728 | |||
Nippon Mining Holdings Inc. | 4,090,000 | 30,756,659 | |||
Nippon Oil Corp. | 6,544,500 | 49,892,454 | |||
Teikoku Oil Co. Ltd. | 1,636,000 | 22,331,241 | |||
TonenGeneral Sekiyu K.K.1 | 1,636,000 | 16,356,468 | |||
135,156,550 | |||||
PACKAGING & CONTAINERS – 0.15% | |||||
Toyo Seikan Kaisha Ltd. | 1,145,200 | 19,873,534 | |||
19,873,534 | |||||
PHARMACEUTICALS – 4.34% | |||||
Astellas Pharma Inc. | 2,781,230 | 108,055,558 | |||
Chugai Pharmaceutical Co. Ltd. | 1,636,000 | 30,156,356 | |||
Daiichi Sankyo Co. Ltd.2 | 2,978,169 | 61,453,261 | |||
Eisai Co. Ltd. | 1,308,800 | 61,131,949 | |||
Kyowa Hakko Kogyo Co. Ltd. | 1,636,000 | 12,486,285 | |||
Shionogi & Co. Ltd. | 1,636,000 | 22,684,360 | |||
Taisho Pharmaceutical Co. Ltd. | 1,636,000 | 34,888,151 | |||
Takeda Pharmaceutical Co. Ltd. | 4,417,200 | 247,889,489 | |||
Tanabe Seiyaku Co. Ltd. | 1,636,000 | 18,164,438 | |||
596,909,847 | |||||
REAL ESTATE – 2.24% | |||||
Daito Trust Construction Co. Ltd. | 490,800 | 23,093,978 | |||
Leopalace21 Corp. | 654,400 | 23,786,091 | |||
Mitsubishi Estate Co. Ltd. | 4,908,000 | 104,452,580 | |||
Mitsui Fudosan Co. Ltd. | 4,908,000 | 102,969,480 | |||
Sumitomo Realty & Development Co. Ltd. | 1,636,000 | 38,560,587 | |||
Tokyu Land Corp. | 1,636,000 | 14,506,126 | |||
307,368,842 |
6 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2006
Security | Shares | Value | |||
REAL ESTATE INVESTMENT TRUSTS – 0.11% | |||||
Japan Real Estate Investment Corp. | 1,636 | $ | 14,689,747 | ||
14,689,747 | |||||
RETAIL – 3.87% | |||||
Aeon Co. Ltd. | 3,435,600 | 82,756,952 | |||
Aoyama Trading Co. Ltd. | 327,200 | 10,169,825 | |||
Autobacs Seven Co. Ltd. | 163,600 | 8,305,357 | |||
Citizen Watch Co. Ltd.1 | 1,963,200 | 17,661,596 | |||
Daimaru Inc. (The) | 1,636,000 | 22,260,617 | |||
FamilyMart Co. Ltd. | 327,200 | 10,311,073 | |||
Fast Retailing Co. Ltd. | 327,200 | 28,701,507 | |||
Isetan Co. Ltd. | 1,308,800 | 24,012,087 | |||
Lawson Inc. | 327,200 | 12,288,539 | |||
Marui Co. Ltd. | 1,636,000 | 31,356,961 | |||
Mitsukoshi Ltd.1 | 1,636,000 | 9,392,963 | |||
Seven & I Holdings Co. Ltd. | 4,123,880 | 170,189,047 | |||
Shimachu Co. Ltd. | 327,200 | 9,689,584 | |||
Takashimaya Co. Ltd. | 1,636,000 | 24,012,086 | |||
UNY Co. Ltd. | 1,636,000 | 25,071,444 | |||
USS Co. Ltd. | 147,240 | 9,750,320 | |||
Yamada Denki Co. Ltd. | 327,200 | 35,481,390 | |||
531,411,348 | |||||
SEMICONDUCTORS – 0.83% | |||||
NEC Electronics Corp. | 327,200 | 11,045,560 | |||
Rohm Co. Ltd. | 491,200 | 47,667,498 | |||
Tokyo Electron Ltd. | 818,052 | 55,301,939 | |||
114,014,997 | |||||
SHIPBUILDING – 0.11% | |||||
Mitsui Engineering & Shipbuilding Co. Ltd. | 4,908,000 | 15,593,731 | |||
15,593,731 | |||||
SOFTWARE – 0.09% | |||||
Konami Corp. | 490,800 | 12,224,977 | |||
12,224,977 | |||||
TELECOMMUNICATIONS – 2.69% | |||||
Hikari Tsushin Inc.1 | 163,600 | 11,441,053 | |||
KDDI Corp. | 13,088 | 67,685,836 | |||
Nippon Telegraph & Telephone Corp. | 26,176 | 114,354,034 | |||
NTT Data Corp.1 | 8,180 | 38,348,716 | |||
NTT DoCoMo Inc. | 85,075 | 127,805,310 | |||
Oki Electric Industry Co. Ltd. | 3,272,000 | 10,593,568 | |||
370,228,517 | |||||
TEXTILES – 1.15% | |||||
Kuraray Co. Ltd. | 1,636,000 | 19,774,660 | |||
Mitsubishi Rayon Co. Ltd. | 3,272,000 | 26,639,292 | |||
Nisshinbo Industries Inc. | 1,636,000 | 17,274,578 | |||
Teijin Ltd. | 4,908,000 | 33,433,300 | |||
Toray Industries Inc. | 6,544,000 | 50,905,625 | |||
Toyobo Co. Ltd. | 3,272,000 | 10,254,574 | |||
158,282,029 | |||||
TOYS, GAMES & HOBBIES – 0.53% | |||||
Nintendo Co. Ltd. | 491,500 | 73,242,305 | |||
73,242,305 | |||||
TRANSPORTATION – 3.93% | |||||
Central Japan Railway Co. | 8,180 | 80,511,116 | |||
East Japan Railway Co. | 17,996 | 128,648,288 | |||
Kawasaki Kisen Kaisha Ltd.1 | 3,272,000 | 20,622,145 | |||
Keihin Electric Express Railway Co. Ltd.1 | 2,439,000 | 20,425,901 | |||
Keio Corp. | 3,272,000 | 20,311,401 | |||
Kintetsu Corp.1 | 8,180,000 | 31,851,328 | |||
Mitsui O.S.K. Lines Ltd. | 4,908,000 | 36,314,751 | |||
Nippon Express Co. Ltd. | 4,908,000 | 26,314,422 | |||
Nippon Yusen Kabushiki Kaisha | 4,908,000 | 32,289,195 | |||
Seino Holdings Co. Ltd. | 1,636,000 | 16,059,849 | |||
Tobu Railway Co. Ltd. | 4,908,000 | 24,873,697 | |||
Tokyu Corp. | 4,908,000 | 30,975,593 | |||
West Japan Railway Co. | 9,816 | 40,001,312 | |||
Yamato Holdings Co. Ltd. | 1,636,000 | 31,498,208 | |||
540,697,206 | |||||
VENTURE CAPITAL – 0.08% | |||||
JAFCO Co. Ltd. | 163,600 | 11,356,305 | |||
11,356,305 | |||||
TOTAL COMMON STOCKS | 13,749,350,435 |
SCHEDULEOF INVESTMENTS | 7 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2006
Security | Shares or Principal | Value | ||||
SHORT-TERM INVESTMENTS – 0.65% | ||||||
CERTIFICATES OF DEPOSIT3 – 0.01% | ||||||
Toronto-Dominion Bank | ||||||
3.94%, 07/10/06 | $ | 413,475 | $ | 413,475 | ||
Wells Fargo Bank N.A. | ||||||
4.78%, 12/05/06 | 661,559 | 661,559 | ||||
1,075,034 | ||||||
COMMERCIAL PAPER3 – 0.02% | ||||||
Amstel Funding Corp. | ||||||
4.40%, 05/08/06 | 413,475 | 410,038 | ||||
CC USA Inc. | ||||||
4.23%, 04/21/06 | 248,085 | 246,598 | ||||
Edison Asset Securitization LLC | ||||||
4.37%, 05/08/06 | 413,475 | 410,062 | ||||
Galaxy Funding Inc. | ||||||
4.23%, 04/18/06 | 237,334 | 235,996 | ||||
Grampian Funding LLC | ||||||
4.41%, 05/15/06 | 413,475 | 409,676 | ||||
Nordea North America Inc. | ||||||
4.16%, 04/04/06 | 868,297 | 864,885 | ||||
Sigma Finance Inc. | ||||||
4.16%, 04/06/06 | 496,170 | 494,105 | ||||
3,071,360 | ||||||
MEDIUM-TERM NOTES3 – 0.02% | ||||||
Dorada Finance Inc. | ||||||
3.93%, 07/07/06 | 256,354 | 256,345 | ||||
K2 USA LLC | ||||||
3.94%, 07/07/06 | 496,170 | 496,161 | ||||
Marshall & Ilsley Bank | ||||||
5.18%, 12/15/06 | 826,949 | 829,202 | ||||
Toronto-Dominion Bank | ||||||
3.81%, 06/20/06 | 1,033,687 | 1,033,717 | ||||
US Bank N.A. | ||||||
2.85%, 11/15/06 | 165,390 | 163,230 | ||||
2,778,655 | ||||||
MONEY MARKET FUNDS – 0.00% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
4.51%4,5 | 474,647 | 474,647 | ||||
474,647 |
Security | Principal | Value | ||||
REPURCHASE AGREEMENTS3 – 0.16% | ||||||
Bear Stearns Companies Inc. (The) Repurchase Agreement, 4.62%, due 3/1/06, maturity value $1,240,583 (collateralized by non-U.S. Government debt securities, value $1,366,696, 0.00% to 9.40%, 11/15/15 to 6/12/47).6 | $ | 1,240,424 | $ | 1,240,424 | ||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.57%, due 3/1/06, maturity value $4,135,271 (collateralized by U.S. Government obligations, value $4,225,765, 3.69% to 10.00%, 5/1/09 to 1/1/36). | 4,134,746 | 4,134,746 | ||||
Citigroup Global Markets Holdings Inc. Repurchase Agreement, 4.61%, due 3/1/06, maturity value $2,067,638 (collateralized by non-U.S. Government debt securities, value $2,174,226, 1.01%, 9/19/35).6 | 2,067,373 | 2,067,373 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.56%, due 3/1/06, maturity value $4,135,270 (collateralized by U.S. Government obligations, value $4,224,211, 4.50% to 7.50%, 9/1/09 to 11/1/35). | 4,134,746 | 4,134,746 | ||||
Goldman Sachs Group Inc. Repurchase Agreement, 4.71%, due 3/1/06, maturity value $4,135,287 (collateralized by non-U.S. Government debt securities, value $4,348,452, 0.00% to 10.00%, 8/15/07 to 2/1/16).6 | 4,134,746 | 4,134,746 |
8 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2006
Security | Principal | Value | ||||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.53%, due 3/1/06, maturity value $992,464 (collateralized by U.S. Government obligations, value $1,013,831, 3.99% to 5.51%, 7/1/32 to 2/1/36). | $ | 992,339 | $ | 992,339 | ||
Merrill Lynch & Co. Inc. Repurchase Agreement, 4.66%, due 3/1/06, maturity value $827,056 (collateralized by non-U.S. Government debt securities, value $853,155, 0.00% to 7.88%, 5/15/08 to 1/15/16).6 | 826,949 | 826,949 | ||||
Morgan Stanley Repurchase Agreement, 4.61%, due 3/1/06, maturity value $4,135,275 (collateralized by non-U.S. Government debt securities, value $4,341,833, 0.00% to 7.16%, 3/1/06 to 3/25/35).6 | 4,134,746 | 4,134,746 | ||||
21,666,069 | ||||||
TIME DEPOSITS3 – 0.05% | ||||||
KBC Bank | ||||||
4.57%, 03/01/06 | 1,653,898 | 1,653,898 | ||||
Societe Generale | ||||||
4.57%, 03/01/06 | 2,894,322 | 2,894,322 | ||||
US Bank N.A. | ||||||
4.45%, 03/01/06 | 1,488,070 | 1,488,070 | ||||
6,036,290 | ||||||
VARIABLE & FLOATING RATE NOTES3 – 0.39% | ||||||
Allstate Life Global Funding II | ||||||
4.57% - 4.63%, 02/08/07 - 03/27/077 | 2,323,727 | 2,324,097 | ||||
American Express Bank | ||||||
4.53% - 4.57%, 06/29/06 - 10/25/06 | 1,943,331 | 1,943,319 | ||||
American Express Centurion Bank | ||||||
4.57%, 06/29/06 | 330,780 | 330,780 | ||||
American Express Credit Corp. | ||||||
4.67%, 02/05/07 | 248,085 | 248,283 | ||||
ASIF Global Financing | ||||||
4.75% - 4.95%, 05/30/06 - 08/11/067 | 2,687,585 | 2,688,288 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
4.55%, 02/23/077 | 537,517 | 537,517 | ||||
Bank of Ireland | ||||||
4.54%, 03/20/077 | 826,949 | 826,949 | ||||
Beta Finance Inc. | ||||||
4.53% - 4.54%, 04/25/06 - 05/25/067 | 1,066,765 | 1,066,744 | ||||
BMW US Capital LLC | ||||||
4.54%, 02/15/077 | 826,949 | 826,949 | ||||
CC USA Inc. | ||||||
4.52% - 4.56%, 03/23/06 - 07/14/067 | 2,224,493 | 2,224,463 | ||||
Commodore CDO Ltd. | ||||||
4.56%, 12/12/067 | 206,737 | 206,737 | ||||
DEPFA Bank PLC | ||||||
4.50%, 12/15/06 | 826,949 | 826,949 | ||||
Dorada Finance Inc. | ||||||
4.52%, 06/26/067 | 206,737 | 206,731 | ||||
Eli Lilly Services Inc. | ||||||
4.54%, 09/01/067 | 826,949 | 826,949 | ||||
Fifth Third Bancorp. | ||||||
4.55%, 01/23/077 | 1,653,898 | 1,653,898 | ||||
Five Finance Inc. | ||||||
4.54%, 06/26/067 | 165,390 | 165,385 | ||||
General Electric Capital Corp. | ||||||
4.67%, 03/09/07 | 372,127 | 372,407 | ||||
Greenwich Capital Holdings Inc. | ||||||
4.53%, 03/02/06 | 206,737 | 206,737 | ||||
Hartford Life Global Funding Trusts | ||||||
4.56%, 02/15/07 | 826,949 | 826,949 | ||||
HBOS Treasury Services PLC | ||||||
4.57%, 01/24/077 | 826,949 | 826,949 | ||||
Holmes Financing PLC | ||||||
4.54%, 12/15/067 | 2,274,110 | 2,274,110 | ||||
HSBC Bank USA N.A. | ||||||
4.70%, 05/04/06 | 289,432 | 289,474 | ||||
K2 USA LLC | ||||||
4.53%, 06/02/067 | 744,254 | 744,235 |
SCHEDULEOF INVESTMENTS | 9 |
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2006
Security | Principal | Value | |||||
Leafs LLC | |||||||
4.57%, 01/22/07 - 02/20/077 | $ | 866,411 | $ | 866,411 | |||
Links Finance LLC | |||||||
4.56%, 03/15/067 | 661,559 | 661,563 | |||||
Marshall & Ilsley Bank | |||||||
4.55%, 02/15/07 | 454,822 | 454,822 | |||||
Metropolitan Life Global Funding I | |||||||
4.56% - 4.96%, 08/28/06 - 03/06/077 | 2,472,578 | 2,473,596 | |||||
Mound Financing PLC | |||||||
4.53%, 11/08/067 | 1,653,898 | 1,653,898 | |||||
Natexis Banques Populaires | |||||||
4.55%, 03/15/077 | 620,212 | 620,212 | |||||
Nationwide Building Society | |||||||
4.58% - 4.60%, 01/05/07 - 01/26/077 | 2,232,763 | 2,232,840 | |||||
Nordea Bank AB | |||||||
4.55%, 02/09/077 | 1,447,161 | 1,447,161 | |||||
Northern Rock PLC | |||||||
4.61%, 02/02/077 | 992,339 | 992,370 | |||||
Permanent Financing PLC | |||||||
4.53%, 03/10/06 - 06/12/067 | 2,249,302 | 2,249,302 | |||||
Pfizer Investment Capital PLC | |||||||
4.53%, 02/15/077 | 2,067,373 | 2,067,373 | |||||
Principal Life Income Funding Trusts | |||||||
4.70%, 05/10/06 | 620,212 | 620,216 | |||||
Sedna Finance Inc. | |||||||
4.54%, 09/20/067 | 248,085 | 248,085 | |||||
Sigma Finance Inc. | |||||||
4.53% - 4.55%, 03/20/06 - 08/15/067 | 917,914 | 917,897 | |||||
Skandinaviska Enskilda Bank NY | |||||||
4.56%, 03/19/077 | 826,949 | 826,949 | |||||
Societe Generale | |||||||
4.54%, 03/02/077 | 578,864 | 578,864 | |||||
Strips III LLC | |||||||
4.62%, 07/24/067,8 | 213,349 | 213,349 | |||||
SunTrust Bank | |||||||
4.62%, 04/28/06 | 1,240,424 | 1,240,424 | |||||
Tango Finance Corp. | |||||||
4.53% - 4.54%, 05/25/06 - 09/27/067 | 1,844,097 | 1,844,008 | |||||
Toyota Motor Credit Corp. | |||||||
4.57%, 04/10/06 | 372,127 | 372,127 | |||||
UniCredito Italiano SpA | |||||||
4.43%, 06/14/06 | 1,075,034 | 1,074,924 | |||||
Union Hamilton Special Funding LLC | |||||||
4.52%, 03/28/067 | 826,949 | 826,949 | |||||
US Bank N.A. | |||||||
4.54%, 09/29/06 | 372,127 | 372,070 | |||||
Variable Funding Capital Corp. | |||||||
4.52%, 03/09/06 - 03/13/06 | 1,240,424 | 1,240,424 | |||||
Wachovia Asset Securitization Inc. | |||||||
4.57%, 03/26/067 | 1,578,231 | 1,578,231 | |||||
Wells Fargo & Co. | |||||||
4.56%, 03/15/077 | 413,475 | 413,506 | |||||
WhistleJacket Capital Ltd. | |||||||
4.53% - 4.56%, 06/22/06 - 07/28/067 | 413,475 | 413,453 | |||||
White Pine Finance LLC | |||||||
4.53% - 4.57%, 03/27/06 - 06/20/067 | 868,297 | 868,297 | |||||
Winston Funding Ltd. | |||||||
4.68%, 04/23/067 | 590,442 | 590,442 | |||||
World Savings Bank | |||||||
4.52%, 03/09/06 | 1,240,424 | 1,240,422 | |||||
53,645,084 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 88,747,139 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.64% | 13,838,097,574 | ||||||
Other Assets, Less Liabilities – (0.64)% | (87,902,158 | ) | |||||
NET ASSETS – 100.00% | $ | 13,750,195,416 | |||||
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 (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
4 | The Fund’s investment adviser is an affiliate of the issuer. See Note 2. |
5 | The rate quoted is the annualized seven-day yield of the fund at period end. |
6 | The credit exposure of the collateral is viewed as unsecured debt of the counterparty. |
7 | This security or a portion of these securities 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. |
8 | The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund. |
See notes to the financial statements.
10 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statement of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2006
iShares MSCI Japan Index Fund | ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 10,569,083,179 | ||
Affiliated issuersa | $ | 474,647 | ||
Foreign currency, at cost | $ | 13,333,365 | ||
Investments in securities, at value (including securities on loanb) (Note 1): | ||||
Unaffiliated issuers | $ | 13,837,622,927 | ||
Affiliated issuersa | 474,647 | |||
Foreign currency, at value | 13,356,392 | |||
Receivables: | ||||
Investment securities sold | 123,537,714 | |||
Dividends and interest | 7,495,390 | |||
Capital shares sold | 325,794 | |||
Total Assets | 13,982,812,864 | |||
LIABILITIES | ||||
Payables: | ||||
Investment securities purchased | 138,347,435 | |||
Collateral for securities on loan (Note 5) | 88,272,492 | |||
Investment advisory fees (Note 2) | 5,997,521 | |||
Total Liabilities | 232,617,448 | |||
NET ASSETS | $ | 13,750,195,416 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 10,484,405,229 | ||
Distributions in excess of net investment income | (21,422,500 | ) | ||
Undistributed net realized gain | 18,569,814 | |||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 3,268,642,873 | |||
NET ASSETS | $ | 13,750,195,416 | ||
Shares outstanding | 981,600,000 | |||
Net asset value per share | $ | 14.01 | ||
a | The Fund’s invesment adviser is an affiliate of the issuers. See Note 2. |
b | Securities on loan with market value of $84,208,392. See Note 5. |
See notes to the financial statements.
FINANCIAL STATEMENTS | 11 |
Statement of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2006
iShares MSCI Japan Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 42,516,513 | ||
Interest from affiliated issuersb | 157,717 | |||
Securities lending incomec | 1,162,097 | |||
Total investment income | 43,836,327 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 30,914,105 | |||
Proxy fees | 267,453 | |||
Total expenses | 31,181,558 | |||
Net investment income | 12,654,769 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments in unaffiliated issuers | (12,699,300 | ) | ||
In-kind redemptions | 225,381,002 | |||
Foreign currency transactions | (1,654,260 | ) | ||
Net realized gain | 211,027,442 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 2,419,758,488 | |||
Translation of assets and liabilities in foreign currencies | 137,303 | |||
Net change in unrealized appreciation (depreciation) | 2,419,895,791 | |||
Net realized and unrealized gain | 2,630,923,233 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,643,578,002 | ||
a | Net of foreign withholding tax of $1,963,617. |
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 the financial statements.
12 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets
iSHARES®, INC.
February 28, 2006
iShares MSCI Japan Index Fund | ||||||||
Six months ended February 28, 2006 (Unaudited) | Year ended August 31, 2005 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 12,654,769 | $ | 37,668,587 | ||||
Net realized gain | 211,027,442 | 63,663,962 | ||||||
Net change in unrealized appreciation (depreciation) | 2,419,895,791 | 584,158,197 | ||||||
Net increase in net assets resulting from operations | 2,643,578,002 | 685,490,746 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (55,636,178 | ) | (26,096,423 | ) | ||||
Total distributions to shareholders | (55,636,178 | ) | (26,096,423 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 4,446,951,157 | 1,159,930,120 | ||||||
Cost of shares redeemed | (532,804,961 | ) | (434,548,691 | ) | ||||
Net increase in net assets from capital share transactions | 3,914,146,196 | 725,381,429 | ||||||
INCREASE IN NET ASSETS | 6,502,088,020 | 1,384,775,752 | ||||||
NET ASSETS: | ||||||||
Beginning of period | 7,248,107,396 | 5,863,331,644 | ||||||
End of period | $ | 13,750,195,416 | $ | 7,248,107,396 | ||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (21,422,500 | ) | $ | 21,558,909 | |||
SHARES ISSUED AND REDEEMED: | ||||||||
Shares sold | 361,800,000 | 109,200,000 | ||||||
Shares redeemed | (39,600,000 | ) | (42,600,000 | ) | ||||
Net increase in shares outstanding | 322,200,000 | 66,600,000 | ||||||
See notes to the financial statements.
FINANCIAL STATEMENTS | 13 |
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Japan Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | Year ended Aug. 31, 2001 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.99 | $ | 9.89 | $ | 8.29 | $ | 7.77 | $ | 9.07 | $ | 13.82 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | 0.01 | 0.06 | 0.03 | 0.00b | (0.01 | ) | (0.01 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) | 3.07 | 1.08 | 1.57 | 0.52 | (1.29 | ) | (4.74 | ) | ||||||||||||||||
Total from investment operations | 3.08 | 1.14 | 1.60 | 0.52 | (1.30 | ) | (4.75 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.04 | ) | (0.00 | )b | — | — | — | |||||||||||||||
Total distributions | (0.06 | ) | (0.04 | ) | (0.00 | )b | — | — | — | |||||||||||||||
Net asset value, end of period | $ | 14.01 | $ | 10.99 | $ | 9.89 | $ | 8.29 | $ | 7.77 | $ | 9.07 | ||||||||||||
Total return | 28.02 | %c | 11.58 | % | 19.32 | % | 6.69 | % | (14.33 | )% | (34.37 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 13,750,195 | $ | 7,248,107 | $ | 5,863,332 | $ | 1,726,855 | $ | 666,376 | $ | 527,899 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | %e | 0.57 | % | 0.64 | %f | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | 0.23 | % | 0.59 | % | 0.28 | %g | 0.03 | % | (0.12 | )% | (0.11 | )% | ||||||||||||
Portfolio turnover rateh | 3 | % | 6 | % | 5 | % | 2 | % | 2 | % | 21 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Includes proxy fees. Excluding proxy fees, the ratio of expenses to average net assets would have been 0.55%. |
f | Ratio of expenses to average net assets prior to voluntarily 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 voluntarily reimbursed distribution fees for the year ended August 31, 2004 was 0.14%. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
14 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited)
iSHARES®, INC.
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, 2006, 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 uses 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 securities of 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; less 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.
1. SIGNIFICANT ACCOUNTING POLICIES
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 the 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 the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
SECURITY VALUATION
The securities and other assets of the Fund are generally valued using market valuations. A market valuation generally means a valuation (i) obtained from an exchange, a pricing service or a major market maker (or dealer), (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker (or dealer) or (iii) based on amortized cost. In the case of shares of funds that are not traded on an exchange, a market valuation means such fund’s published net asset value per share. The investment adviser may use various pricing services or discontinue the use of any pricing service. A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. In the event that current market valuations are not readily available or such valuations do not reflect current market values, the affected investments will be valued using fair value pricing pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”).
NOTESTOTHE FINANCIAL STATEMENTS | 15 |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, 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 Fund are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies are translated 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. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective date of such transactions.
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 by the Fund. Distributions of net realized capital 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.
The tax character of current year distributions will be determined at the end of the current fiscal year.
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, 2006.
As of August 31, 2005, 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, $5,594,562 and $8,733,802 expiring in 2009, 2010, 2011, 2012 and 2013, 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.
16 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The Fund reclassifies at the end of its tax year certain amounts to paid-in-capital from accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss), respectively, as a result of permanent book and tax differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, realized foreign currency gains and losses and gains and losses on in-kind redemptions. These reclassifications have no effect on net assets or net asset value per share.
As of February 28, 2006, the cost of investments for federal income tax purposes was $10,625,773,380. Net unrealized appreciation aggregated $3,212,324,194, of which $3,300,071,743 represented gross unrealized appreciation on securities and $87,747,549 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.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Agreement with the Company, 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 expenses (“Covered Expenses”) of the Company, 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. Expenses related to the organization and initial registration of the Company were borne by BGFA.
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 |
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 and expenses are Covered Expenses as defined above.
SEI Investments Distribution Co. (“SEI”) serves as the Fund’s underwriter and distributor of the shares of the Fund, pursuant to a Distribution Agreement with the Company. SEI does not receive a fee from the Fund for its distribution services.
Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC”), the Fund is permitted to lend portfolio securities to Barclays Capital, Inc. (“BarCap”). Pursuant to the same exemptive order, Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Company. BarCap and BGI are affiliates of BGFA, the Fund’s investment adviser. As securities lending agent, BGI receives, as fees, a share of the
NOTESTOTHE FINANCIAL STATEMENTS | 17 |
Notes to the Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 28, 2006, BGI earned securities lending agent fees of $1,162,097.
Pursuant to Rule 17a-7 under the 1940 Act, the Fund executed cross trades for the six months ended February 28, 2006. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter, for compliance with the requirements and restrictions set forth by Rule 17a-7.
Pursuant to an exemptive order issued by the SEC, 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, 2006, including income earned from these affiliated issuers.
Name of Affiliated Issuer | 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 | Interest Income | ||||||||
IMMF | 694 | 981,838 | 982,057 | 475 | $ | 474,647 | $ | 157,717 |
During the six months ended February 28, 2006, the Fund invested cash collateral from securities on loan in a joint investment account with other investment funds managed by BGFA (see Note 5). The joint account invested in the GMMF, IMMF and PMMF. Due to the nature of the structure of the joint account, the information needed to isolate the activity at the Fund level is not available. As such, 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, 2006, 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, 2006, aggregated $364,873,219 and $345,744,136, respectively.
In-kind purchases and sales (see Note 4) for the six months ended February 28, 2006, aggregated $4,383,409,646 and $531,065,688, respectively.
18 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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. As of February 28, 2006, 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 contribution of a designated portfolio of equity securities constituting a portfolio sampling representation of the securities involved in 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 by the Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other 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, 2006, the Fund had loaned securities which were collateralized by cash. Pursuant to an exemptive order issued by the SEC, the cash collateral received was invested in a joint account with other investment funds managed by BGFA. The joint account 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 and non-U.S. Government debt 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, 2006 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.
NOTESTOTHE FINANCIAL STATEMENTS | 19 |
Notes:
20 | NOTES |
Notes:
NOTES | 21 |
The following is a list of iShares Funds being offered, along with their respective exchange trading symbols. Please call 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 100 (OEF) |
iShares S&P 500 (IVV) |
iShares S&P 500 Growth (IVW) |
iShares S&P 500 Value (IVE) |
iShares S&P MidCap 400 (IJH) |
iShares S&P MidCap 400 Growth (IJK) |
iShares S&P MidCap 400 Value (IJJ) |
iShares S&P SmallCap 600 (IJR) |
iShares S&P SmallCap 600 Growth (IJT) |
iShares S&P SmallCap 600 Value (IJS) |
iShares Domestic Sector Index Funds |
iShares Cohen & Steers Realty Majors (ICF) |
iShares Dow Jones U.S. Basic Materials Sector (IYM) |
iShares Dow Jones U.S. Consumer Services Sector (IYC) |
iShares Dow Jones U.S. Consumer Goods 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 Transportation Average (IYT) |
iShares Dow Jones U.S. Utilities Sector (IDU) |
iShares Dow Jones U.S. Total Market (IYY) |
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 Nasdaq Biotechnology (IBB) |
iShares Global Index Funds |
iShares S&P Global 100 (IOO) |
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 Russell Microcap™ (IWC) |
iShares International Country 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 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 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/TOPIX 150 (ITF) |
iShares Bond Funds |
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 GS $ InvesTop™ Corporate (LQD) |
iShares Specialty Index Funds |
iShares KLD Select Social SM (KLD) |
iShares Dow Jones Select Dividend (DVY) |
iShares International Index Funds |
iShares MSCI EAFE (EFA) |
iShares MSCI EAFE Growth (EFG) |
iShares MSCI EAFE Value (EFV) |
iShares MSCI Emerging Markets (EEM) |
iShares MSCI EMU (EZU) |
iShares MSCI Pacific ex-Japan (EPP) |
iShares S&P Europe 350 (IEV) |
iShares S&P Latin America 40 (ILF) |
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 NYSE Index Funds |
iShares NYSE Composite (NYC) |
iShares NYSE 100 (NY) |
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 2006 Semi-Annual Report.
2461-iS-1205
22 | 2006 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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 majority 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.
©2006 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, 2005 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 schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the Commission’s website at www.sec.gov. The Fund’s Form 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 schedule 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.
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 Section 4(a) of the attached certification.
(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.
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, 2006 |
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, 2006 | ||
By: | /s/ Michael A. Latham | |
Michael A. Latham, Principal Financial Officer | ||
Date: May 2, 2006 |